Imagine this: you work full-time in the oil fields of Northern Alaska away from your loved ones, doing 12-hour shifts, missing holidays, and earning $40, 000 annually. Fast forward a year later and you’re already earning a little over $40, 000 in the first quarter of the year alone.
Too good to be true? Not in the wholesaling world! And the wholesaling journey of today’s guest is solid proof.
Cody Stone is an exceptional wholesaler from Boise, Idaho. The determined rhino first learned about wholesaling from listening to podcasts. While clueless where he fits in the wholesaling game at first, his business started to gain traction when he joined the tribe in January of 2017.
While there are several marketing strategies one can apply when it comes to wholesaling, Cody credits much of his success to one method–talking to people. If you are unsure if the proactive approach truly works, Cody’s story might just change your mind!
- While driving for dollars, he discovered a rental property owned by out-of-state landlords situated in Southern Nevada. Property had tenants but was in a rough shape.
- After talking to the owners and exchanging a few e-mails, he was able to get the property under contract for $210, 000.
- Highest bidder offered $230, 000 for the property, earning him $20, 000 in assignment fee. That’s unbelievable ROI for something he didn’t spend a single marketing cent on!
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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Brent Daniels: Hello. Hello, hello, hello Rhino Nation. It is Brent Daniels and we have got just an outstanding interview today in the hot seat from Boise, Idaho and I’m not going to introduce them yet. I want to keep you in suspense for just a little bit, but I did want to touch on something that I think is very, very important for everybody listening to this podcast today. Without a doubt, one thing that you absolutely have to get down, something you have to implement, a mindset change that you have to put deep inside that beautiful brain of yours is 100% confidence. I’m not talking about 50%. I’m not talking about 75%. I’m not talking about 98%.
I’m talking 100% confidence that when you are talking to a motivated seller, when you are having a conversation with somebody that needs to sell their property and they need help with it, that you put in your brain right now and forever, as long as you’re in this industry, that you are the absolute best person to help them out with this problem. You are the number one problem solution provider. Okay? You provide the best solution possible. You have to put that in your mind and let me explain a little bit why. The reason it is so critical that you have that sitting in there, and that confidence and that mindset is because it will absolutely affect those conversations that you have with a homeowner. Okay, it absolutely, that confidence needs to come out and they need to know that they are in really, really good hands.
The only way that you’re going to do that if you’re nervous about it if you’re thinking that maybe you don’t know what’s going on, or what’s happening, or if you can help them, or whatever, that is going to sabotage your conversations. I am telling you, this is not heart surgery. We are not building rockets here. We’re not curing cancer here. We are talking positive, and we’re seeing if they would consider an offer and if we can solve their problems, so you need to go with absolute, I’m serious, absolute confidence that you are the best at solving their problem. Okay, keep that in your mind. 100% focus on that. Think about that. It will impact and affect every single conversation that you have in the positive and you are going to get way better deals, way bigger deals.
You’re going to be able to solve so many problems and people are going to be so happy to refer you to anybody else that they have that are in similar circumstances. So, go with that confidence I am giving you right now. Boom. I’m putting it in your brain. It is there now forever, for as long as you’re doing this, have the confidence that you are the best. And speaking of the best, we’re going to get into it right now. Again, from Boise, Idaho, I’ve got a phenomenal, phenomenal student in both the Rhino Tribe and the TTP program. I’ve got with me, Cody Stone. Say hello, Cody.
Cody Stone: How’s it going, Brent? Thanks for having me on the podcast.
Brent Daniels: Hey.
Cody Stone: I’m sorry Brooke wasn’t able to make it this time. We’re still transitioning on working on our business instead of in our business, but either way, we’re happy to be here and I’m glad to be on the call with you.
Brent Daniels: Love it. So Cody and Brooke both work together. They’re a married couple. They work together. They’re around each other all the time. They are absolutely kicking some serious booty in Idaho. Let’s break this down a little bit. So you have been… When did you get into the wholesaling business?
Cody Stone: We got into the wholesaling business probably a couple of years ago. Right in there. I first jumped into listening to podcasts, getting inundated with tons of information, and different strategies, and how you can make money in real estate. At the time, I just knew I didn’t want to be working a job making somebody else rich for my next 20 working years or what have you.
Brent Daniels: Sure.
Cody Stone: And so it was a struggle just wrapping our heads around what we wanted to do, where we would fit into the whole real estate game. And so we were spinning our wheels a lot. It wasn’t until we joined the Tribe in January of 2017 where we finally started to get some traction and had the guidance, and the help of Tribe members to really get our business going. During that time, I was working full-time at a job and so it was a part-time venture for me, but I knew it was either go for it or not, you know? Yeah, I just had that long-term vision. I knew that I was going to be in real estate and my wife working with me in that and so joining the Tribe was one of the best things that we did.
The connections that we’ve made with those Tribe members have been very impactful in our lives and more than just financial ways. So, I guess I could just say we started out a little bit rocky, but we were willing to get uncomfortable, and take that action, and deal with the outcomes as they came. Not every transaction is going to be exactly the same, so there’s going to be learning opportunities at every corner. It makes it exciting for sure. And so, yeah, I guess I’ll just get right into it. We didn’t really have a solid marketing plan. We were sending out mailers as the Tribe teaches, and we were able to close a few deals.
And when I heard you speak in Salt Lake about the Talk to People Program, it really resonated with me for the simple fact that you’re not having all this anxiety built up over missing a phone call that could potentially be a $1,000 deal. I really liked that proactive approach. Not a lot of people are doing it even still today. I explain to people what we’re doing and they’re still not willing to be consistent at it. You’re interrupting somebody’s day and so you got to have a bit of thick skin for it.
Brent Daniels: Sure. Sure. I also think that some people need their day interrupted. Some people have their head in the sand. Some people have mounds, and mounds, and mounds of mail sitting in their living room. They’re not doing anything. Their house is falling apart around them. They just are paralyzed with the idea of making a decision and then all of a sudden you call them, or I call them, or Brooke calls them, and all of a sudden we’re having a good conversation. We’re able to move people through the decision process. So, but continue. I agree with you 100%. It is an interruption, but I think it’s a positive interruption when we do find those people.
Cody Stone: It is and you’ve, you’ve seen it before too where you’ve gotten properties under contract, where there’s a stack of postcards sitting on the counter and they just haven’t been able to take that next step. So just being conversational on the phone, and just like you’re the guy next door, I think helps really well to allow people to open up a little bit on the phone, and get a conversation started about whether or not we’d be a good fit to purchase their property or not. And so it’s been fantastic. Our business has grown even more since implementing the TTP program and so, we couldn’t be happier with that.
Brent Daniels: That’s awesome. And you touched on something that I think is really, really important and that is the inherent anxiety that comes with paying for marketing, for paying for direct mail, for paying for internet leads, for paying, for all of these different things. It’s what I call the pay and pray method of this business. And it brings so much anxiety and I mean anxiety in the sense of when I send this out, did I send it to the right list? Did I say the right things on the mailer? Did I send it on the right day? Am I going to be able to answer the call at the right time when they call or am I going to miss it and miss out on $10, $15, $20,000 opportunity? Am I going to make nothing from this mailer? And I just spent $500 to $1,000, $2,000, $5,000 on all these mailers. Oh my God, I’m getting anxious just thinking about it, right? Do you know what I’m saying?
Cody Stone: Did you put the right phone number on the postcard?
Brent Daniels: Did you put the right phone number on? Did you put the right mailing address? Did you get all the zip codes right? Did you get all… I mean there’s so many things that you get nervous about and then if you expect that you send something out and all of a sudden, or you press a button on your computer to get PPC leads or whatever it is, and you’re expecting this big flood of leads that come in, it’s just not happening. That’s not reality. The reality is if it was that easy in your market, everybody else would be doing it. And what you’re talking about is you’re going out there and you’re going in this place. You’re even telling people, and I’m even telling people in my market exactly what I do to get my deals, and get business, and they won’t do it. Isn’t that crazy?
Cody Stone: It is. It is. I think people have this fear of getting just torn apart on the phone. And at least in our market, Boise, Idaho, people are pretty kind and you don’t get too many rude people wanting to rip you up and down for calling them. So those phone calls are few and far between and if you do come across those phone calls, I always like to end my day on a positive note with a good conversation with somebody before I hang it up for the rest of the day. So that might be a good tip for somebody to keep their morale up.
Brent Daniels: I love it. I love it. Especially somebody that already knows you, likes you, trusts you. And it’s funny when you make a call, you have four seconds to get permission for the next 30 seconds. And that’s exactly what the script that we use in the TTP program does, is it gets you that extra 30 seconds. And in that 30 seconds, it’s conversational. It’s not aggressive. It’s not going after their throats or trying to get to interrogate them. It’s very conversational. So we have found throughout the country, and especially with us, I mean we make over 40,000 calls a month and very rarely do we have somebody that’s completely just out of their mind mad at us. Very, very rarely. So it’s really important that you know, and you have the right approach, and you have the right tone, and tonality is so important. Excellent. I love it. So let’s break down a deal. Let’s break down a TTP deal that you can talk about that you had just called them up out of the blue. You had a conversation and you were able to close the deal. Do you have one locked loaded for us?
Cody Stone: Yeah, I can talk about one of our most recent closings that we had. I think it was a couple of weeks ago. And so it was a conversation that I had with some out-of-state landlords. They live down in southern Nevada and they have this property, it’s not even ideal as a rental property. It was a four-bedroom, two-bath split entry built-in 1970 and it sat on one acre in Boise. So they’ve had renters in there for the past six years. The property was wrecked, and they knew it, and they were like, these tenants are going to make it… They’re not going to make it very easy on you to even see the property. They’re probably going to make it worse than it actually is. And they just wanted to offload this property, and take that equity, and use it for another house that they had down there, their personal residence down there in Nevada.
And so we had a couple a back and forth through email and conversations and we were able to get it under contract. It was four 4210 and they were hard set on getting $220 for the property. Getting the ARV, the after repair value on this was a little bit difficult because there’s not too many properties that sit on one acre and Boise, all fixed up and renovated. There were some dated properties, but I think this is important for a lot of people on the call too. If there’s motivation there, they do want to sell, get it under contract for as low as you can, and you can base that off of the ARV. You could base it off of the lowest of the low comps, some properties that are selling on the market in rough, rough shape, and you can get an idea. If you can get below that, you’re pretty good.
But I would just recommend people getting properties under contract for as low as they can and then have this inspection process where you can basically let your business partners, your buyers, contractors come through the property, and then let them tell you what it’s worth. And so with this property, we did get it under contract. We scheduled a time that we could go and view the inside of it. And the tenants were saying that they had the flu and they didn’t know if they could make it work. And you’re talking about that confidence early on the call and that’s important to have that confidence. It will build over time. I’m not always the most confident person, but as you get in this business, and as you work the script, and you talk to more people, your confidence naturally starts to build, and it floods into other areas of your life.
So, in this case, I told the tenants, I said, “We’re not going to be able to reschedule this. I already have my contractors planning on being out there. We’ll be as respectful as we can and it’ll be about 45 minutes or an hour and we’ll be out of your hair” So we were able to make that inspection happen. I guess I should back up a little bit. We did blast this out to our cash buyers at $219 so there’s a $9,000 spread. Long story short, I had a huge turnout. People were lined up around the block. Luckily, it was an acre property on the corner because it was a circus. It was fantastic.
Brent Daniels: Yeah.
Cody Stone: And so we were able to make it work and some offers that came in, we did accept an offer at $230,000 so [inaudible 00:14:47] assignment, $20,000.
Brent Daniels: I love it.
Cody Stone: Yeah.
Brent Daniels: Oh, my gosh. That is excellent. And that was off of a phone call?
Cody Stone: Yes.
Brent Daniels: That was off of you just reaching out to an absentee owner list, right? I assume you pulled an absentee rental list or something like that. Where did you pull your list from?
Cody Stone: Yeah, a good point. This was actually a Driving for Dollars property that we found.
Brent Daniels: Yes.
Cody Stone: And we do also pull the high equity absentee owner list and we do call them as well, but this one just so happened to be Driving for Dollars It’s been our bread and butter. Brent. You could vouch for that I know. It’s changed our life.
Brent Daniels: Yep, yep. So explain to everybody listening, what you do for your Driving for Dollars. What do you mean that it changed your life?
Cody Stone: It’s something that Brooke and I both enjoy doing and we actually purchased this little Ford escape. We almost like we bought the car for Driving for Dollars because they had the map of the streets, and it has little dots to where it shows what areas you’ve covered, and stuff like that. But I think the reason why it’s changed our lives so much is because no one person has that exact list.
Brent Daniels: Exactly.
Cody Stone: Idaho is a nondisclosure state, so getting some of this information on homeowners, it can be a little tricky. And so they might not be as valuable as states that are disclosure states.
Brent Daniels: Yep.
Cody Stone: Skip tracing, it dives just that much more deep into finding accurate information. So the combination of getting a list of properties that nobody else has, and then also skip tracing those lists, and getting the most accurate data possible, I think really separates TTP from doing a lot of these mass mailings
Brent Daniels: Sure, sure. Well, in this nationally competitive market right now, you got to be able to do the things that other people aren’t willing to do. So you’re going out there, and you’re literally finding all the worst properties in your community, and it gets you excited. Trust me. I know. You go out there and all of a sudden you’re like, oh my gosh, look at that house. That house needs a lot of love, or it’s just totally overrun. You could tell that it’s vacant. I mean vacant properties are just I mean they should have a big shiny beacon on them that you should do whatever it takes to get ahold of the homeowner, and see what’s going on with them, and have a respectful, and good conversation with them. I mean it is so, so, so huge. I mean here’s the facts, the fact is if you can buy a list, and you can get it with three, or five, or 10 clicks, and it’s easy, and you can do it in 20, 30 minutes, so can 10, 20, 50, 100, 1,000 other people in your market. That’s the fact. That’s an absolute fact.
Cody Stone: Absolute.
Brent Daniels: If you can do it in an under an hour, if you can do it in under 30 minutes, then anybody can have that list, so it’s going to be competitive. There’s going to be a lot of competition. If you want to go after properties that nobody knows about and get to them before anybody else gets to them, then go out and Drive for Dollars. Go out and find those properties that need some love. Get the phone number for the owner, and give them a call, and just to have a conversation. Man, I love it. I love that you are proof positive that it works and it works everywhere. I mean, you know in the TTP program, we’ve got people all over the country that are doing this and being successful. So I mean it’s just being proactive. I love it. You and Brooke have both… It’s really interesting. When you look at you guys, you said that we really enjoy doing this. Yes, yes. Right?
Cody Stone: Yes.
Brent Daniels: How do you not enjoy being with the person that you love driving around finding buy opportunities to make tens of thousands, $20,000? $20,000 from one call to the homeowner on a property that was beat up, that you drove, and didn’t pay for that list. I mean, that’s the biggest ROI of all time.
Cody Stone: Yeah. Hey Brent, we found our personal residence that way before starting the Tribe.
Brent Daniels: Really?
Cody Stone: Yeah. Yeah. Brooke was like, “Well that house looks like it needs a little bit of work.” And I was looking at the shop behind the house and I’m like, heck yeah, put it down on the list. Who knows, these people called us, and they were also landlords by default, and their tenants weren’t paying, and the place was wrecked. We were able to work out a deal with them and we moved into our fixer-upper.
Brent Daniels: I love it.
Cody Stone: Yeah, so people can even do this for their personal residence. That’s one of the beautiful things too about doing what we do. Wholesaling, it all starts with a good deal, right? Whether it’s going to be an investment property, your personal residence, or a flip, buy and hold, any of that. It all starts with a really deep discount and being in wholesaling is just fantastic. It’s great.
Brent Daniels: Love it. Love it. So step me through real quick, a day in the life. Breakdown, say it’s a Thursday, or a Tuesday or something, just a regular day. How does it look? How do you make sure that you’re constantly able to pick up the phone and talk to people?
Cody Stone: I guess it comes back to the reason why we want to build this business, and it ultimately comes down to having more freedom of time, and also not having a cap on income. Working a job, it doesn’t matter how hard you work for that employer, you’re only going to get paid a certain salary, or a certain dollar per hour, and so you get what you give in this business. So having a strong why will really help you to pick up that phone that might look like a cactus sometimes. And so that’s the biggest thing I think right there is just the reason why you want to do it. It’s easy to get discouraged in this business too, especially if you’re on social media. You see these people, it looks like they’re hitting home runs right away. You have to step back and realize that you’re in your situation or reason, and it’s not going to stay that way.
I don’t know exactly what I was trying to get out here, but just being willing to do the work and let time iron itself out. Most people aren’t going to be super, super successful right off the bat. So just kind of getting that out of your head and realizing I’m going to be in this business for two years down the road. I don’t care how long it takes, I’m just going to do it. That’s helped with the positivity, being positive, and realizing that it’s not going to happen overnight. But if you’re willing to take that huge action, you’re going to get the results. If you’re willing to take a little bit of action, it’s going to take you a little bit longer.
But picking up that phone and just having a conversation with somebody, that’s what it’s all about. And I think an important thing too when you’re talking on the phone with people is don’t be that motivated buyer. You want to be reluctant to put something together and just I always say, “I don’t know if we’re going to be a perfect fit or not, but I can ask you a few questions, and see if it would make sense and if selling your property would make sense or not.” And so stepping out of that salesperson box and just being the guy or gal next door just looking to buy a house. It’s a long-winded question, but.
Brent Daniels: No, I love it. I mean you touched on something that’s really, really, really important and that’s the long-term view of this. Listen, anybody can come in and be a one-hit-wonder, right? Anybody could get lucky or maybe they’re just in the right place at the right time. Lucky, silly. I don’t mean lucky, but they could just talk to the right person, at the right time, get a deal. And if they never take action again or if they don’t take consistent action again, that’s the deal, right? I look at it like this and I really do. I look at it as if there was a wholesaling hall of fame, the only people that get into the hall of fame for anything, are people that are extremely good over a long period of time. Do you know what I mean?
It’s about the consistency. It’s about building the skills being excellent over a long period of time and building an excellent career out of this. Do you know what I mean? It is not about making $20,000. Like, you making $20,000 on this deal and then taking off the next 60 days, or the next 30 days, or whatever it is. Do you know what I mean? It’s like you keep it going and yes, you want that time freedom and yes, you want to be able to have whatever opportunities that you want, and be able to fulfill your passions, and your dreams, and whatever you want to get done in this life. Right? But to be able to do that, we have to build that up, and we have to build a system, and we have to build a business so that we are not just highly paid professionals.
We are truly entrepreneurs that have a business. And you’ve touched on it. You talk about working in the business and on the business. And I think that’s something that’s used a lot in the entrepreneurial space, but it’s really, really important to know that the more consistent you are, and the more money that you can make, and the more money that you can put back into your system to be able to create consistent deals all the time, and be able to predict it, and be able to duplicate it all the time, that is when you get the true freedom. That’s when you’re able to just train people to do everything in your business, and then you’re off and running, and you can do whatever the heck you want. Do you know what I mean?
Cody Stone: Exactly. Yep. And I should mention too, with the help of the Tribe and then being a part of the TTP program, I did quit my full-time job last year.
Brent Daniels: Yes.
Cody Stone: So now Brooke and I are both full-time, which is absolutely fantastic. When I first got into the real estate thing, I was working in the oil fields up in northern Alaska. I had since taken a job at home so that I could make an income and also build this business. I was making about $40,000 per year at that job working 12 hours a day, night shifts every three months, and like all these holidays that I was missing with family, and stuff like that. So I was making $40,000 a year when I was a full-time last year, and building this wholesaling business with Brooke. This month with the next closing, next week it’ll be just a hair over $40,000 for income in March.
Brent Daniels: Oh look at that. I love that.
Cody Stone: That’s just absolutely huge. It gives me chills on what this business can bring to people who are willing to be proactive, get out of their comfort zone, learn the skills that they need, and just take action.
Brent Daniels: Love it. Love it. Congratulations Cody. I mean truly to you and Brooke. You guys are amazing. It is an absolute pleasure to have you guys in the TTP program, and in the Rhino Tribe, and you guys just keep going. You guys are doing amazing things and thank you so much for your time on this podcast today. So guys, here you go. I hope that you wrote down a lot of what Cody was talking about today about taking action, about being proactive, about getting out there, and having fun, and finding opportunities every single day. And if you are looking for the absolute best game plan for this business, go to www.wholesaling.inc.com/TTP. Schedule a call. We have some time set aside in the next 48 hours to be able to talk to you, get an idea of where you’re at, see if you are a great fit for us and if we’re a great fit for you. And if you are, we’ll invite you to join us in the TTP family, in the Wholesaling Inc. Rhino Tribe and you will be off and running. So again, this is Brent Daniels, encouraging everybody to talk to people. Until next time.