Today’s guest is Mike Hoffman, a rockstar rhino from Charlotte, North Carolina. The astute husband and father of 2 has been a tribe member since September of 2017 but is only doing wholesaling on the side.
If you are a newbie in the wholesaling world, you’ll learn many beneficial insights and actionable tips in this episode. You’ll also discover how speed of implementation, getting in front of the seller, and taking massive imperfect actions has helped Mike close his very first deal.
Since he became a member of the tribe, Mike has been religiously following the tips and advice he was given and implemented them as soon as he can.
- He got his lead from a direct mail he sent out during the holidays using the standard tribe postcard.
- He knew seller was highly motivated so he scheduled an appointment.
- Rather than rushing to close the deal, he built rapport with the seller first by spending quality time with them and building a relationship of trust.
- He got the property under contract and made $5, 000 in assignment fee. That’s a good amount of money for just a few hours of work!
While Mike encountered a few challenges working on his first deal, his willingness to learn and the speed of his implementation has undoubtedly made a massive difference. Learn from his example and you just might close your first ever deal before you know it!
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 at Wholesaling Inc. Super excited to have each one of you with us today. We have so many new listeners. We have listeners that have been with us for years. I want to thank each of you, whether you’re first time on the podcast or have been here for all of the podcast episodes that we’ve put on. Super excited to be with you today. For those that are new and don’t know exactly what it is we’re going to be talking about, we will be talking about wholesaling, specifically wholesaling real estate. And wholesaling is simply the art of finding deeply discounted properties and then how you can simply assign those contracts for a huge profit. And so that is our show, what we’re going to be delivering. And we’ve got one of our rock star rhinos that just recently joined the tribe just in September.
So he’s been with us for about five months and he’s from Charlotte, North Carolina. He’s married, he has two kids. He does do full time, nine to five, well even more than nine to five and you’re smiling in the background here. This guy puts in 50 to 60 hours a week for corporate America. So does this very part-time and he has already quickly found his first deal and ultimately is going to start rocking and rolling and doing this more consistently. So let’s bring on Mr. Mike Hoffman and it’s so close to Hofhine that I just want to say, ”Hofhine.” But my Mike Hoffman let’s bring you on my man. How in the heck are you?
Mike Hoffman: Hey I’m doing great Cody. How are you?
Cody Hofhine: So, so, so good. I remember seeing your face like it was yesterday at the Orlando Summit Event that we host every year. And from there man, I already knew when you were going home you were going to be like, ”Bam, let’s go set this world on fire,” and it seems you’re doing it.
Mike Hoffman: That’s exactly how it seems to be playing out so I couldn’t be happier.
Cody Hofhine: `I love it. So kind of give us maybe a little background, what is it that ultimately got you into wholesaling? Because you’re working corporate America. Do you love corporate America? And was your why, because of that? You don’t want to work there? What does it look like and how did you ultimately get into wholesaling?
Mike Hoffman: So my story is I have been in corporate America for nearly 20 years and I’ve had a great career. What I have found is over the years you start to get promoted and every year you give just a little bit more of your soul to the corporation and a little bit less to your family, to your wife, your kids. And I hit a point where my wife and I started listening to the Clayton Morris podcast and this guy just kept mentioning that he got started out in wholesaling. I thought wholesalers must be these brilliant individuals that have the secret sauce to making life happen. And one day I just kept listening to Clayton and he mentioned his mentor, Tom Krol. And I immediately looked up Tom Krol on the podcast. I listened to 27 podcasts in one weekend-
Cody Hofhine: 27 podcasts in one weekend!
Mike Hoffman: … I couldn’t get enough of… It was-
Cody Hofhine: I want to ring the victory bell just for that.
Mike Hoffman: It was crazy and it just made me think, you know what, I can do this. I’m going to be one of those Rhino people. And I had my wife listened to a podcast, she was on board. We called the Tribe. Next thing I know we had a chat and bam, we’re in.
Cody Hofhine: I love it.
Mike Hoffman: So we’re all about using wholesaling to eventually help us both get out of corporate America and spend more time with our kids and just being more human.
Cody Hofhine: So here’s what I love. You’re working and you’re burning that candle at both ends. You’re wholesaling part-time, you’re more than full time at corporate America. How are you able to make this work? How many hours a week are you putting into wholesaling?
Mike Hoffman: It ebbs and flows. Obviously when my mailers hit, I’m working insane hours. I’m skipping lunches at work and making phone calls. I’ve got a long commute. I spend upwards of two hours in the car each day. And so there are times that I’m making phone calls out, I can’t use the script. I’m making phone calls on the way home. And I have to remember the details in my head, so when I get home I can write down what was that we discussed. But there’s weeks, it’s 20 hours wholesaling, especially when you’re out visiting homes and there’s other weeks it’s a little bit slower and maybe you’re talking seven to ten.
Cody Hofhine: Wow. Wow, wow, wow. But here’s the thing, it’s uncomfortable. You’re working a lot of hours for corporate America and then over and above that you still have to sacrifice a little bit of family time, some time to get things rolling, but such is the case for entrepreneurship. Is your goal now that you’ve done your first deal, and we’re going to get right to it here in a second, but is your goal ultimately to be doing wholesaling full time and be done with corporate America?
Mike Hoffman: That is absolutely the goal, yes.
Cody Hofhine: Perfect. Perfect. Okay, well let’s get right to the meat and potatoes. We’re always calling this podcast the no fluff, no BS zone. And so Mike, my man, let’s get us going on this first deal that you’ve closed and let’s kind of go right to it. How did you find it, out of what marketing channel were you using?
Mike Hoffman: So I use Direct Mail, usually the standard.
Cody Hofhine: Okay, were you mailing post cards?
Mike Hoffman: Yep. I use the standard tribe white postcard.
Cody Hofhine: Awesome. We love that standard tribe postcard.
Mike Hoffman: Yep. It’s one of those things… I was listening to coaching calls back in December and you and Tom both just kept saying, you have to double down on marketing, double down on marketing in the holiday season. And I just thought, what the heck, I’m one for broke, I’m going to send yet another mailing out. And so I did and it got absolutely delayed in the mail because of Christmas card season. So your typical three day delivery, I was expecting these mailers to hit folks, December 21st December 22nd.
And while I was on vacation visiting my home over the holidays, back home in Kentucky, my phone started blowing up while I was at my parents’ house. I spent two to three days just taking phone calls and there was nothing hot. There were some lukewarm deals, but nothing amazing. I came back dejected thinking all that advice was not amazing advice whatsoever. I was back at work in the office January 3rd, it was starting, just a slow day and my phone rings and it was that call that I’ve been waiting on. You could tell by the tone of the voice of the individual that this was a motivated seller that was ready to get rid of their home today.
Cody Hofhine: That’s so, so awesome. So here’s the one thing I want to point out to each of you listening. What’s crucial about what Mike is doing is his speed of implementation. He receives instruction and he goes out and he did it. I mean, the success ultimately comes back to Mike. Yes, he heard a gold nugget, ”Hey, double down on your marketing,” but you can hear it and it can do absolutely nothing for you or you can implement it quickly, which Mike did. And even though at first I love that you said, ”Man, that was some crappy advice. It was crummy calls. I spent three days that I could’ve been with my family on the phone.” I love it. But your speed of implementation is what ultimately why you’ve got to give yourself that pat on the back because not many people pull the trigger and take massive imperfect action and you were willing to do that. And this is what led to this deal. So let’s talk about the phone call when it came in. What did it sound like?
Mike Hoffman: I’ve often heard people on the podcast talk about, you just know when you have a motivated seller, and I have come across two motivated sellers and you absolutely know there’s a tone in their voice. They can tell you exactly down to the cent what they owe on the house. And so I took the phone call. It was from the daughter of the owner who claimed that she had power of attorney for the house. The mother was in Florida. The mother was the owner of the house, was in Florida and had had an accident over in the early December timeframe. She had a couple of broken bones and the daughter came back to North Carolina in order to sell the house and then take those funds back so that they can be a lot closer together and important she can help assist her mother with any of her health needs.
So I took the phone call and she had spoken to a couple of people that have sent postcards. We have a stack of postcards at the house, but something about your call, just resonated with my mother and she said just call this guy. And so-
Cody Hofhine: So cool.
Mike Hoffman: … I spoke to her and she had said that she kind of anchored in what other people had offered her setting, it was just way, way, way too low. So I started doing the math in my head real quick because I’m cheating on Zillow going, what’s the after repair value of this home? How do I get South of 70 but North of where people were at. So I basically said, I need to come visit you. I get off of work in a couple of hours, I’m going to come visit you. Does that work? And she said, ”Absolutely, yours to walk through. You can take pictures, do whatever you want. But yes, come visit it because we’re ready to get rid of the house.”
Cody Hofhine: So hold on right there Mike because, you’re nailing some incredible parts here and everyone listening, Rhino Nation, I’m telling you, liquid gold first and foremost, how do you differentiate yourself from maybe the so-called competition? And we always say this is at Tribe, we do not believe in competition, we’re all going to the ocean with five gallon buckets. But what Mike did was crucial. He differentiated himself. So he found out maybe some of the numbers were other people were. That’s awesome. But ultimately he knew if he wanted to get a deal, you’ve already got this going. This is what’s fantastic and I want each of you to write this down. Get in front of the seller. ”Hey, I’m going to be off work in a couple of hours. Can I come meet you?”
That speed of implementation and get in front of you because what is he doing? He’s now prepping the ground so that when they meet face to face, not only did she like maybe the postcard, the marketing piece, then all of a sudden it lines up with this incredible guy that’s super nice, that’s a go-giver, that’s trying to make it a win, win on the phone, but then when they meet them in person, it just solidifies a deal. This is what wholesaling is all about. It’s building those relationships of trust and it’s so much easier to do that face to face and I can promise you without even knowing all this story, Mike probably did a good job at building that relationship a trust, because ultimately people do business with people they trust. Now when you went out to this house, did you have to kind of reintroduce yourself, reintroduce the top, or what did that look like?
Mike Hoffman: You know, it felt natural. I work with people all day long, constantly selling myself to them. So in this case I introduced myself, and I wanted to further deepen that relationship, to let them know this isn’t about a business transaction. You have needs. You have a home that you were trying to sell, but you are a person, your mom is a person. How do we connect with both of you first and then-
Cody Hofhine: So crucial.
Mike Hoffman: … Let’s eventually get to walking around the house.
Cody Hofhine: Love it.
Mike Hoffman: And so it really developed on developing the relationship first, even though they were ready to just bust through the house.
Cody Hofhine: I love it. So again, gold nugget value. Rhino Nation, listen to this. He goes on the appointment, and he starts talking to the individual, being friends with the individual. It wasn’t about, ”Hey, let’s walk in, and hey, show me the master bedroom. Show me the backyard. Show me the front yard. Show me this. Show me where it needs to be repaired.” It was all about them, them, them, them, them, and he spent quality time and that is secret. That is the secret sauce that a lot of people don’t do. That’s how you differentiate yourself from so many so-called competitors, is spending the time to get to know them.
And then maybe after 30 or 45 minutes of getting to know them, then go look at the house and see if there’s something you can do to help them. Because again, you’ve got to build that rapport. You’ve got to build that relationship of trust. And Mike, you nailed it perfectly on what you did. This is textbook perfect of what it should be. Every single appointment you go on is spending time with them and don’t worry about the deal, worry about them. The by-product is you’ll get a deal that’s attached to them, but it’s worrying about them and you’ve nailed that out perfect. So ultimately when you sat down, you build this relationship of trust, you look at the house, what were you ultimately able to put the home under contract for?
Mike Hoffman: We were a home under contract at $150,000.
Cody Hofhine: That’s what it was? You put the home under contract at 150 you said?
Mike Hoffman: Correct, yes.
Cody Hofhine: Okay. Okay. And in your mind by doing some of the quick research that you did, what was the home going to be worth after it was repaired?
Mike Hoffman: Conservatively I put it at about $225,000.
Cody Hofhine: Okay.
Mike Hoffman: And so I went ahead and put it under contract and thought I can go ahead and ask for $5,000 for the contract. And if it grows from there, great. But this is my first deal things seem to be going decently well. Let’s start somewhere.
Cody Hofhine: Awesome.
Mike Hoffman: And so I distributed out to cash buyers saying I have a contract that I would like to sell with a minimum bid of $155,000.
Cody Hofhine: Perfect. So this goes out and how many cash buyers, to kind of give people an understanding of what your cash buyers list looks like, how many?
Mike Hoffman: At the time, I had been coached heavily by Tom, so I’m unhappy to say at the time I was below 150, I was at 125 cash buyers at the time.
Cody Hofhine: Okay.
Mike Hoffman: I have since grown considerably, but it went up to 125 buyers.
Cody Hofhine: Okay, and up to 125, how many people were like, yeah, I want to go take a look at this?
Mike Hoffman: I’m going to say I got responses back from maybe seven and-
Cody Hofhine: Okay. Let me do some math here while you’re saying this. Keep going.
Mike Hoffman: I had a response back from approximately seven who tried gaming the system as much as you can game it, because they are now under what you’re offering today, before the inspection period and I just had to keep my own feet to the fire and not give into the impulse to just close this deal. Ultimately, it was that first individual that said, ”I want this house before anybody else.”.
Cody Hofhine: How do I do it?
Mike Hoffman: Ultimately that is the person that ended up buying the contract. But we-
Cody Hofhine: Okay, so let’s do this real quick to do math. On the math on this mike, this is what’s brilliant behind what you’ve done is I just did quick math on this. Out of 125 cash buyers, seven were interested. That’s 1 out of 18 people on your list were interested. Had you only had 10 people on your list, there’s a chance you’re not moving this contract. Had there been 17 people on this list, there’s a chance you’re not moving this contract, but of the seven people that came, how many were actually willing to say, yes, I want this?
Mike Hoffman: There were three that were genuinely interested in this property.
Cody Hofhine: So the odds get even-
Mike Hoffman: And so-
Cody Hofhine: … Why I’m saying this, the odds get even, I’m just doing this, 125 divided by three. One out of every 42 cash buyers were actually interested when it came down to after looking at the home, do you see the power, Rhino Nation and why Mike is loving that he had at least a list of 125 and why he wanted to grow that because even though there are seven interested, only three were actually committed to saying, ”Hey, I want to buy this.” That’s one out of every 42 cash buyers that were actually willing to put money down on it. Keep going, my man.
Mike Hoffman: Yeah. I’ve never even thought about it that way, but some amazing math-
Cody Hofhine: That’s crazy, right?
Mike Hoffman: … So, yeah. So basically-
Cody Hofhine: That’s why the power is in that number.
Mike Hoffman: Yeah. Yeah. So essentially we got down to the point where we got the house under contract and as the lawyers started to do their work on the back end on the house, turns out the house was in a trust. And the daughter who had power of attorney had no power at all to write the contract for this house. So-
Cody Hofhine: You’re already seeing tough roads ahead of you.
Mike Hoffman: Oh yeah. Oh yeah. So yeah, we had to revisit, do we need to revisit the contract? Do I need to go back to the actual seller? And the daughter kept being the liaison between the actual owner of the trust and myself. And I finally just said, ”Is it okay if I just call your mom, is that doable?” So next thing I know, I’m speaking with the mom, the actual owner of the house in the trust and we’re making progress. But this woman is ready for her daughter to be back home in Florida now.
Cody Hofhine: Yeah.
Mike Hoffman: So, even though the contract says, 30 days for the contract expires, she’s ready to sell the house in two and a half weeks and not a day longer. So I’m in Orlando with you and Tom and I must have taken eleven phone calls from this owner just saying, ”Where are we? What’s going on?” And there was an ice storm back in Charlotte that had shut down the city for four days. So the state government, the local city government had shut down. There was no way to do the title work on the house. So we lost nearly an entire week of this two and a half weeks.
Cody Hofhine: Wow.
Mike Hoffman: So it could have gone wrong. It did go wrong within this process. But ultimately we signed the contract on January 6th, and we finally closed on the house, a few days after. We had originally intended to close on February the 5th. The daughter was supposed to have been out of the house and we were supposed to close on January 31st, but come January 31st she and her stuff were still sitting in the house. She couldn’t get the house packed up fast enough so we just kept extending it out and then finally it was vacant on the 5th and we closed.
Cody Hofhine: Awesome. And ultimately you made how much on that assignment?
Mike Hoffman: I made $5,000 on the end of assignment.
Cody Hofhine: 5,000 so you ready for what’s coming? Look at this. This is like school teacher style. Here’s that victory bell. With that being said, my man, $5,000 on your first deal and I will tell you whether it’s 5,000 or whether it’s $200, your first deal will be a deal that you will always remember, and I love that this one has a way to make it even more memorable because there was so much imperfection, there was so much trials and challenges. There was the road closures because of snow storms and everything going on, going through the trust and not having a power of attorney set up right. There was so many things that would maybe take so many people to the, you know what? This is not even worth it and walk away. You didn’t do that. You were Rhino. You charged on, you charge through it and here you are $5,000 on the assignment and my gut tells me it’s probably just gave you that much more confidence to go out and do this again. What is your future look like? Do you have pipeline already lined up with some more deals?
Mike Hoffman: The pipeline is looking really solid right now. I would say there are seven really attractive looking deals in pipeline along with the fact that I’ve finally found the holy grail. I finally got the tax delinquent list for the county-
Cody Hofhine: Whoa, yeah!
Mike Hoffman: … That mailer should be hitting mailboxes either today or tomorrow-
Cody Hofhine: Love it.
Mike Hoffman: … And one of those deals lined up is looking like a very nice whole tale deal. So-
Cody Hofhine: So sweet.
Mike Hoffman: … If I can get the whole tale deal plus all seven, then I will absolutely take it.
Cody Hofhine: I love it. I’m telling you going here, going forward, we’re going to be having another podcast episode with you when you’re turning in your two week notice saying, ”Hasta la bye, bye.” I am done and I’m going to be super excited to do that podcast again because it’s closer than you think. That’s for dang sure. All it takes is one, we talked about that at the summit. It takes one, that’s all it takes is one and all of a sudden the confidence goes up. Your commitment to marketing, your commitment to making offers, your commitment to talking to people just continues to just go through the roof. And that is what leads to contracts, which ultimately leads to getting paid. So I’m excited to see what 2018 looks like for you, because I know it’s going to be bright here going forward because your confidence has already changed since Orlando. That’s the beautiful thing and I’m excited for it.
Mike Hoffman: Yeah.
Cody Hofhine: Well, perfect. If you were to give some gold nuggets, let’s say you were starting over at the very beginning, we have so many new listeners on the podcast. If you were to say that you’re now day one again, and knowing what you know now, what would you have done differently or maybe what would you have done the same because it worked so good?
Mike Hoffman: I think the first thing I would’ve done is I would’ve left my ego at the door.
Cody Hofhine: What do you mean by that?
Mike Hoffman: I deal with people in corporate America every day. I’ve been a consultant that’s constantly selling my services to people in the past. I’m always doing my best to influence people at the office. I work for a large financial corporation and I’m always using the power of influence for these people here. And I thought, if I get into wholesaling, I’ll just use all these amazing talents that you see here and I’ll go in and just tear it up. And I heard so many times you guys reference these gut check moments.
I thought, there’s no way it’s going to happen to me, I’m going to do it. And there’ve been so many gut check moments along the way, like me texting Tom while I’m at my daughter’s swim lessons and he’s like, ”Just get back in there, just do it.” And I think I would have started with a blank slate realizing I know nothing. I’m learning from the best. I’m going to follow every piece of advice verbatim, trusting that they know more than I do and I’m just going to go into it with an attitude of instead of setting the world on fire, I’m just going to take it one step at a time because my pace is my pace and being okay with that.
Cody Hofhine: I love it. I love that advice. What about a book, if you could reference of all the good books you’ve read, maybe one good one right now that you could say, hey, this would be a game changer?
Mike Hoffman: I am listening again to Never Split the Difference by Chris Voss. Such a great book, especially chapter nine about haggling, but everything in that book speaks to me-
Cody Hofhine: Yeah.
Mike Hoffman: … That I could listen to it again and again and again because the number of times, whether it’s in your job or with other individuals, how to use your own version of verbal Tai Chi against someone else in order to gain their empathy and their buy in.
Cody Hofhine: I love it. I love it. Well, Mike, my man, I appreciate you for being on this podcast today. There are so many people that are listening today that might be at the beginning stages and they just need to hear this. Maybe there’s people working that nine to five and they’re working that 50, 60 hours saying, how do I have any more time than what I’m already giving? And you’ve helped them understand there’s something worth it. There is some other option out there and unless they do sacrifice a little bit more time, unless they do something different.
I love Tony Robbins when he says, ”If you want life to change, it’s you that has to change. If you want life to get better, it’s you that has to get better,” and you are living proof that even though you’re working 50 60 hours a week, you are still willing to do something over and above. And yes, this is just temporary right now you’re burning the candle at both ends, but it’s because you want something more. You have a desire, a dream of what you want your life to be. And corporate America is not providing that for you. And you’re realizing that. And so kudos to you because it’s hard at first. Entrepreneurship is not easy and you know this and you’re feeling the dip, you’re feeling the struggle, you’re feeling the challenges. But I can tell you with your smile on your face that I just saw right now it is 1000% worth it. Tell me if I’m maybe seeing that wrong or saying that wrong.
Mike Hoffman: No, you’re right. I mean there’s those moments where you just say, this is a lot, but then you have those rhino moments, thanks to Scott Alexander where you just say, you know what? Today, I’m going to put on that three inch skin and I don’t care how many times I’m told no, I’m going to continue to pick up the phone. I’m going to continue to call. I’m going to continue to send out mailers and I’m going to continue to make connections-
Cody Hofhine: Love it.
Mike Hoffman: … And make it worth it.
Cody Hofhine: Love it. I love it. Well, Mike, thank you so much for being with us. I know you’re going to be crazy hit up with phone calls here in the next little bit, whether it’s today or tomorrow when that mail hits, but get ready to keep doing what you’re doing and move forward. So thank you so much for being on this and Rhino Nation, I’m telling you this is one to re listen to. There’s so many good gold nuggets here that Mike has shared with you on how to get your first deal, follow these things, implement, the speed of implementation. When he heard double down, he didn’t wait, he didn’t think about it. He just did it and by doing it he found his first deal. Was it easy? No, it wasn’t easy. It was tough. It was challenging. It had every possible problem tied to it, but it was worth it. He’s laughing right now. He’s smiling right now because it’s challenging but it’s worth it.
And if you guys want help just like Mike, if you want help to do this or you want to see what it looks like, go over to our website wholesalinginc.com. It’s wholesalinginc.com and go listen to stories just like Mike, you can click on the testimonials tab and just listen to how many people are doing this nationwide. You can do this, anyone can do this. You just have to be willing to put forth that massive imperfect action just like Mike was talking about. And when you do those things with the right instruction, you can get your first wholesale deal and onto many more. And so if you want to book a call, do that. You can book a free strategy call with our team. We’d love to talk with you and strategize with you about wholesaling and if you end up being a good fit, we just might invite you just like Mike to be part of the tribe. So that you can rock and roll for 2018. Until next time Rhino Nation, thank you so much for joining us and we’ll see you on the next episode.