Posted on: May 10, 2018

If you’re a new wholesaler eager to close your first deal, you’ll surely love today’s episode. Our special guest has done something most wholesaling neophytes would love to accomplish—close a deal in a short amount of time.

Nate Hammond joined the tribe just this March. However, the Albany, Oregon native has already closed his first deal in just a little over 30 days.

So, how did he go about it? What challenges did he encounter and how did he resolve them? You’ll surely learn a lot of valuable wisdom and insights in today’s episode so make sure you tune in!

The Deal:

Nate is a real estate appraiser who’s doing wholesaling on the side. The husband and father of 2 wanted to be able to travel and spend more time with his family and figured out wholesaling can help him achieve said objective.

  • He found his seller through a postcard he sent to the high equity list.
  • The property has been in the market for 6 months already and seller is highly motivated.
  • He was able to get the property under contract for $140, 000 and walked away with $13, 353.50 in assignment fee. Definitely a massive reward for something he only spent 10 to 12 hours on!

Not every wholesaling deal is going to work out the way you would want it. However, you’ll be rewarded accordingly and it will be worth it. Just go ask Nate.

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Episode Transcription

Cody Hofhine: Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine. I’ll be hosting today’s podcast, and I am super excited to bring with you an individual that is just going to absolutely inspire you, uplift you, and motivate you with his recent wholesale deal. Now, for those of you that are new to the podcast, and maybe listening for the first time or maybe have listened to a handful of podcasts, we talk about wholesaling. And wholesaling is simply the art of finding something at a deep discount. In this particular instance, we’re talking about finding homes- finding real estate at a deep discount that you can then turn for huge profits.
And we have an individual, his name is Nate Hammond and he’s from Albany, Oregon. He’s married, has two kids, and we’re going to tell you how this real estate appraiser now doing wholesaling on the side has just found his first deal and made a great amount of money in just a short amount of time. He’s only been in the tribe since March. Here we are in April, so a little over a month and he’s already cashed his first check, and we’re going to deep dive that deal today on this episode. So my man, Nate, how in the heck are you, my friend?

Nate Hammond: Doing good, Cody. Glad to be on. How are you doing?

Cody Hofhine: So, so, so good. Did I miss anything on the introduction?

Nate Hammond: No, you pretty much covered it all.

Cody Hofhine: Okay. Kind of fill us in on the details then. Help our listeners understand: what is it that got you into wholesale? I know you’re already in the real estate background with being an appraiser for real estate, and ultimately what intrigued you and what got you over to start looking into wholesaling?

Nate Hammond: Yeah, like you said, I’m a real estate appraiser. I would go out and I’d do appraisals on purchases, a lot of flip properties after the crash and everything. Reviewing the paperwork, I would see kind of what the flipper bought it for, what their expenses were, what they’re selling it for. I’d see the profit margins, and I’m like, “Man, I’m in the wrong side of this here.” So the flipping part’s a little too involved for me. I’m not very handy at all. I can barely screw in a light bulb. So I didn’t want to get into the flipping side, but I want to be involved in some part of it, some junction of it.
So doing some research, looked for podcasts, came across the wholesaling podcast, did some more research on wholesaling and that was a little more my style. Had less to do with the property itself and more to do with kind of just pushing paper around and being the provider for those flippers, kind of the quick nickel over the slow dime approach. And that kind of fit my style and my mentality a little more than the flipping aspect of it.

Cody Hofhine: I love it. I love it. So, married, two kids; what are some of the fun things you get to do with your family?

Nate Hammond: Man, yeah, I’m married, two kids. I also coach high school basketball, and one of the things- my kids are kind of far apart. One’s nine and one’s two, so my nine year old, he’s been growing up with me ever since I started coaching. So I love- he’s really into sports- and I love just taking him out, and he comes with me to a lot of practices and games and stuff and just spending that time one on one with him, I love doing.

Cody Hofhine: So cool.

Nate Hammond: Yeah, it’s awesome. My youngest is two and his personality is the complete opposite of my oldest. Just my oldest is really laid back and chill. My youngest is just a little Tasmanian devil and just rips through everything. So still trying to get ahold of that one. But he likes to stay active and we would like to get to a point where we can travel some more with the kids. My wife and I, that’s a main reason why we got into this is to start freeing up some time down the road.

Cody Hofhine: I love that. I love that you shared that because that’s exactly what a lot of people are looking for, and maybe don’t know the exact path or what to take, and there’s so many paths out there, Nate. And that’s one thing that is very true and upfront. And what we love about this podcast is we’re going to talk about one of those vehicles, one of those opportunities, those options that can help you create more time with your family. Which is ultimately why I’m glad you shared, because that’s what everyone wants. This is something unique that we all want. We all want more time with our family and now we’re just looking for what is the vehicle that’ll allow this to happen.
Let’s help them understand a little bit more about wholesaling. Let’s go right to this. We’re going to go to the no BS, no fluff zone quickly so we can deliver really gold nuggets and value to the listeners today so they can really take something from this and put it into action. So for those of you listening today, please pull out a pen, pull out a piece of paper, and get ready to jot down some things that Nate is going to share. Because these are principles that if you will follow and take action on, you too can find a deeply discounted property and make some money on it. And Nate’s going to share just how much money he made at the end of this podcast. So let’s go through this. What kind of mail lists were you mailing to? And were you mailing direct mail, a postcard, a letter, what did it look like? How did you market the individual that we are going to be talking about today?

Nate Hammond: Yeah, so this was a high equity list that I pulled and it was a postcard, just the same postcard that’s in the tribe provided by you guys. And it was kind of weird the way it worked out. The homeowner, she was an elderly woman, she called me off of the postcard and she actually had the property listed for sale at the time with a realtor who happened to be her niece. So she called me through the information gathering, figured out it was for sale. And I kind of told her, you said, “I don’t really want to, especially being an appraiser in the area, I don’t want to step on the toes of any realtor in the area. And plus she’s under contract with her. So I said, “If you’re serious about getting this sold, have that conversation with your realtor and I’d be happy to work with you once it’s taken off the market. But until then, you just kind of got to roll with what it is you’ve got going right now.”

Cody Hofhine: Nate, you’ve already shared some great wisdom right there and there’s so many times I get asked that as the coach is, “Hey, we’ve got this property, but it’s listed with a real estate agent. How do I do it? How do I work with this?” And what you just provided right there is the exact answer that I would give students, is, tell the individual, “Yeah, you’ve got to work with your real estate agent. Whether you want me to work directly with your real estate agent and send you over an offer, or whether you call me back when the contract between you and the realtor is expired. Whatever that looks like, we’ve got to do this right. You don’t want to burn bridges, and you definitely don’t want to undercut any realtors cause that’s not ethical, it’s not legal. They’ve got it under contract. So what you did was an amazing example of just being true and honest to the things that are in place. So keep going, my man.

Nate Hammond: Yeah, no, exactly. Like I said, it was her niece. So the seller was pretty adamant that she… I guess the niece was kind of working pro bono and she wasn’t going to take a commission, but she had it priced way too high. And I think it started at like 215, 215,000, and then dropped accordingly from there. When she contacted me, I think it was listen for 185 but it was on the market for about six months. So she had no problem with talking to her niece and getting it pulled. What it was was the home was built in 1900 and it was like a six bedroom, two bath, 3000 square foot house, just kind of [Mickey mouse?] together from additions over the years. And it’s been in her family her whole life.
So the value wasn’t in the home itself. The value was in the land, because the land could be subdivided and there was a lot of new construction going up. Actually, right across the street there was a whole new subdivision going in. So I kind of explained all that to her and then told her that I was going to value it as the land, which she actually is the one who brought that. So through the negotiation process, I didn’t really mention any of that. I let her talk, and then she started talking about how crappy the house condition was and how she doesn’t feel like the house could be saved and that she would, if it was her doing it, she would knock it down and do all this, do all that.
So she kind of went the path that I was going to go anyways, but I let her do it as opposed to me doing it because I didn’t want to offend, especially since it was in her family since the 1900’s. I didn’t want her to be like, “Oh no, don’t knock the house down.” It means a lot to us. We ended up… We went back and forth, back and forth. She ended up getting her son involved with a negotiation, which is fine because I kind of wanted somebody- she was elderly and disabled- I kind of want somebody on the outside to make it seem like I wasn’t taking advantage of the situation, being that she was elderly.

Cody Hofhine: So smart.

Nate Hammond: Yeah, it worked out. So to cut to the chase, we ended up back and forth, back and forth. I got it under contract for 140,000 when, like I said, it was listed for sale to start from 215 and then 185 when we got it. So it just shows you how much she really wanted to get rid of it. She dropped it $45,000 from what it was in a couple of days.

Cody Hofhine: Tell me this. At 140, were you already instantly thinking, “Man, I’ve got something here.” Were you questioning if it was a deal? Or were you like, “No, this is starting to turn into a great deal”?

Nate Hammond: It wouldn’t have been a deal. Like I said, it wouldn’t have been a deal at that number if I was just trying to value it as a rehab for the house. But I did some research, called the city, and the city said you can divide it into three lots. So I guess… Do you want me to jump ahead?

Cody Hofhine: No, but this is awesome. I love this, because you have some background that’s unique, right? A lot of people may not come into this and just instantly know what homes are going for. You have a unique connection that, instantly, you know the values of homes because that’s what you do as a living.
Now, what’s interesting is you already said the more the value play in this one is if I can find someone that actually wants the land. Cause the home itself, what I have it under contract in, is not a deal. So out of the gates you already knew, “Hey, I’m looking for a guy that wants to develop and keep this land.”

Nate Hammond: Exactly. Yeah. And it helped that the sellers were on board with that too. Like I said, that they understood that the value was in the land and not in the home moving forward. And I guess I’ll get to that. But the… and yeah, being an appraiser helps cause I have access to the MLS, I have access to a lot of other stuff that might be a little more difficult for just somebody who has no real estate industry connection to get ahold of.
So that did play in my favor a little bit, and it will moving forward. But I could have got more, and we’ll get to how much I made at the end, but I could’ve gotten more for it. But what happened was my brother-in-law is actually a builder. So what I did was I went to him after I got under contract. I didn’t tell him how much I had it for, and asked him if he wanted this. Because he just sold out of everything he had and he was looking for some more projects, and his lender was actually looking for some more kids with money movements. Went to him, asked how much he wanted to pay for it, he gave me a number, and I worked backwards from there in my negotiations with the seller. So sorry, before I got under contract.

Cody Hofhine: Yeah.

Nate Hammond: I knew kind of my starting point and then worked backwards from there. And that’s how I came with the 140. He ended up being my in-buyer, and if it would have been a, kind of an open bid thing like you guys teach, I’m positive I could’ve got almost double what I made. But he’s my brother-in-law and he just had a new baby, his first. So I wanted to kind of help him out a little bit and…

Cody Hofhine: Keep him busy.

Nate Hammond: Exactly, keep him busy.

Cody Hofhine: Yeah. So, you put under contract at 140.

Nate Hammond: Yeah.

Cody Hofhine: Brother-in-law ends up buying, which is a super easy connection. It’s a great first deal. Let’s tell them what that looks like. So when you went to closing, and check goes to the seller, and a check goes to you, what was that check amount for your assignment on this deal?

Nate Hammond: So I guess before I get to that, one of the pitfalls and one of the struggles I had with this one was, being that it was my brother-in-law who was buying it, that was a builder, he had to get a construction loan for it. I couldn’t do an assignment because I’ve come to find out that if there’s financing on the other end, you would know better than me, because those are my really, my first one. The financing on the other end, my title agent said that the Fannie and Freddie and all of them don’t allow assignment contracts. It has to be a double close.

Cody Hofhine: Yep. Yep.

Nate Hammond: Okay. So it kind of drug out a little longer. I had to go back to the sellers and get an extension on the contract because of that, which was a hard conversation to have. But we ended up making it work, and I told them if we had it set for a certain closing date and if it didn’t close by then… It was set for… I think the end of March was the original. And then I went back and had to extend it two weeks, and they weren’t too happy about that. And I told him, I said, “If it goes back past this two weeks, I will pay you your mortgage every month, or in accrued, for every week.”
It goes past that so that they’re not coming out of pocket and you think, “I like it there.” If their mortgage was $800 a month, I’d pay him $200 a week until it closed. After that extension, it kind of softened the blow for them cause I knew it wasn’t going to go past that unless something really blew up. But it was a way to get them to agree to it and have a benefit for them if I couldn’t meet my word.

Cody Hofhine: Somethings you’re sharing here, that’s a value to those listening, is the fact that not every deal is going to go exactly how you plan. It’s not always going to be like a recipe to build a cake where it’s the same process every single time. It changes. Every deal brings something unique about it that tweaks it just enough to different from the last one. This, my friend, will be a great learning experience, first and foremost, because you learn the double closed process. Which, a lot of people, that’s what they’re doing anyways, is the total close. They close on the property, they own it, and then they just turn around and sell it at that point. And some people are even, turn around, and putting on the MLS at that point and trying to sell it to a retail buyer. There’s so many ways to do this and it’s so crucial that, those listening, is, it’s not going to be just one way. You’re going to see so many unique things happen in each and every deal. And this is a perfect example of that.

Nate Hammond: Yeah. So to answer your question, I had it under contract for 140 and I ended up cashing a check at the end for $13,353.50.

Cody Hofhine: Holy smokes. Hold on. There’s the victory bell for my man, Nate. So $13,353.50, and here’s the sweet thing about this. You’ve only been doing this for a little over 30 days. Here we are. You’re into your second month of doing wholesaling, and you’ve already closed a deal that brings in 13,000. I bet as you start to look at, maybe your future, and what wholesaling can do for it, you can probably start to see that light, that reality that says, “Oh my goodness, I think I’ve tapped into something that allows me to spend more time with my family.” Is this not the case as you start to look at your first check already out of the gates just like this?

Nate Hammond: Exactly, man. And it’s… I make pretty good money as an appraiser, but the… I feel like I have a good hedge with myself right now because the market’s up, appraising’s really well. From what I’ve noticed, kind of direct mail response might be a little lower than it has been in the past just because if someone has anything that’s just remotely ready to sell, they’ll just throw it on the MLS, at least in my area in Oregon. It’s just crazy right now and they get multiple bids on it. But once the market corrects a little bit, appraisal will slow down a little bit. I feel the wholesaling part will ramp up. I feel like I have a good hedge for myself, but… I make decent money wholesaling. But appraising… But it’s a lot of time and I made this amount, the 13,000 for this deal, I made it within a month.
But it wasn’t a month of 40 hour weeks. It was a few phone calls here, a few phone calls there, visit to, the property here, and to the seller’s house there. And it probably equaled out ,all in all, probably about 10 to 12 hours in the whole deal. And that’s big. If I could replicate that and continue to do that and scale up then that’s huge for me and my family.

Cody Hofhine: I love it. I love it. I love it. Nate, my man, thank you for sharing the story. There’s so many people listening right now that are probably wondering, “No way. This is too good to be true. Like, holy smokes. But also, maybe the better part to ask you so that you can let them know- is this just so easy, it’s so easy that anyone can do it? And it’s just unicorns and rainbows, and it’s just the most easiest thing you’ve ever done. Is that the case?

Nate Hammond: Not at all. No. And it’s definitely, it’s worth it though. I mean, when I cashed that check it was definitely worth it. When you just rang that victory bell for me, it was definitely worth it. Because I’ve been listening to the podcast forever, and listening to all these people getting the victory bell rang for them and I’m like, “Man, I can’t wait for that to be me.” And it just happened for me. That’s kind of surreal.

Cody Hofhine: Yeah, and now you’re pinching yourself. You’re like, “Man, that’s my bell, baby.”

Nate Hammond: Yeah, it’s awesome. But no, it’s definitely hard work and it takes an investment. It is a business. It’s not a get rich quick thing. It’s not an infomercial type, sit on the beach all day and collect money. You know, it takes an investment of time and money to make it work. And I’m at the front end of that and I made my investment back in the [wholesaling?] program within 30 days. Not saying that’s… Disclaimer, not guaranteed. It worked for me, but I was willing to put in the time, and I was willing to put in the effort, and the marketing to make it work. I wasn’t just going to sit back and twiddle my thumbs, and because I bought this program, all of a sudden something’s going to happen for me.

Cody Hofhine: So smart man. Nate, I love those words. Guys, everyone listening now, it’s not easy. It’s going to be tough. It’s going to give you some bumps and bruises and some challenges and struggles. But like Nate said, at the end of the day, it’s worth it. You put forth the action, and you too can have a payday just like Nate. $13,353 and I won’t forget the 50 cents, and assign his first deal, 30 days into this program. Right out of the gates, goes for it. It goes back to you, Nate, though, you took massive imperfect action. You weren’t looking for a perfect plan. You know as well as I do. perfect plans do not exist. That leads you into that analytical, like analysis paralysis, and what you did do is just take massive imperfect action. You went out there and did exactly what you need to do, and here you are being blessed for your labor. And that was a huge, huge check. A huge win, and now you can double down and put more into marketing and get ready for a wholesaling business that can start to really take off.

Nate Hammond: Exactly. Yeah, and my end game is- I’m not really looking for the wholesaling business to necessarily… I mean, I love my appraising job. I’m my own boss, and I work from home, and make my own hours, and I like the work. I like doing it, but I’m not looking for wholesale and to necessarily replace my appraising income. What I’m trying to do is I’m trying to… and we just actually bought our first one, use this money to buy a investment rental properties to get the passive income to then cover my expenses. And then I’m financially free at that point. And in February my wife and I just closed on our first a rental property. It was a turnkey down in Indianapolis.
We’re in Oregon, it’s in Indy, and I’m going to visit it for the first time. At the end of… I bought it sight unseen, but that, you know, there’s a lot of due diligence involved. I’m going to visit it for the first time at the end of May, and I’m looking forward to that. So, if anyone’s in Indy and wants to meet up, feel free to contact me or if you have any deals for me down in Indy buying old stuff, let me know.

Cody Hofhine: That’s awesome. That’s awesome. Nate, my man, I want to thank you so much for being on the show and sharing some wisdom. Quickly, before I let you go, I want to see- what would you tell our listeners, those that are maybe brand spanking new into wholesaling, those that have never done a deal, maybe. What would you do if you were starting all over? Which is pretty easy for you. That was 30 days ago.
But if you were starting from ground zero, what would you tell the individuals listening, saying, “How do I get started?” What would I want to know if I’m just getting started?

Nate Hammond: Well, maybe to clarify a little bit, I’ve been in the tribe for about 30 days. I’ve been trying to do the wholesaling stuff for probably about a year now. But I had one deal from my year of trying to do it on my own, which didn’t even cover how much I spent on that compared to the 30 days. I guess the one thing I would say is, be consistent. One of the main things, when I was trying to do it on my own without the support of you guys, and the help, and the forums and everything, is, I would send out a mailer. And then I would just wait for people to call, thinking that was going to just work as magically as that, and not send out a follow up a couple months later, or a couple of weeks later. And maybe not follow up on the leads I did get.
You have to be consistent with it. It’s a business, just like anything else. If you were to open up a coffee shop or something like that, you’re not just going to open up the coffee shop and then all of a sudden hope people show up. You have to market for it and you have to invest money. You have to invest time in order for you to see the fruits of your labor in the end. So, I would definitely say, be consistent and look for a mentor.

Cody Hofhine: Love it, love it, love it. What about a book? What’s a recent book that you’ve read lately that you’re like, “Man, I love this, and I want to share this with the world.”

Nate Hammond: I know that a required reading in the tribe is the four spiritual laws of prosperity. But I’m so new to the tribe that I haven’t finished that book yet. So I can’t recommend that one yet. But I would say, one that I’ve read that kind of shifted my whole mindset, and, this isn’t anything groundbreaking, was Rich Dad, Poor Dad by Robert Kiyosaki. That got me thinking business ownership and passive income and just kind of shifting your whole mindset away from working for money, and having your money work for you, and trying to get to that financial freedom.

Cody Hofhine: Now the coincidental thing about this, is, as we are speaking, Tom is actually sitting with Robert Kiyosaki as we speak, hanging out with him for the weekend. That is something cool. So not only is Rich Dad, Poor Dad an amazing book, and it is game changing for a lot of people, helps them with their mindset and really just create the real picture of what real estate can do for you. And what a great book. Great, great, great book. And he shares it in such a way that captivates tons, in fact, millions. That’s why he’s a New York bestselling author.

Nate Hammond: Yeah, exactly.

Cody Hofhine: Well, perfect. Nate, thank you so much for joining us on today’s episode. There are so many gold nuggets that I know they’re just going to get a lot of value out of this. For those of you that have listened to this podcast, it’s now your time. It’s your time to take action.
Some of these things that were shared that Nate has spoken about, and the gold nuggets and the value that he brought to this podcast, I hope you have taken at least one thing. Gary Keller has a book called The One Thing, and I’m hoping you take you at least one thing that you’re currently not doing. Go try it. Put it into practice. Take massive imperfect action. Don’t wait for a perfect plan. Go out there, fail your way forward, but take action today so that you can get your first deal and look what it can do for you. You could find your first $13,353 check. It could be right there, it could be the next phone call away, but it doesn’t happen unless you’re willing to take action. If you want to go over and get inspired and uplifted by many other people that are doing this across this great nation, go over to wholesalinginc.com. That’s wholesaling I-N-C dot com.
Click on the reviews and you will hear stories after stories. In fact, majority of them now, videos. You can see the individual, and hear their story step-by-step- how they’re able to get deals and what it’s done for their lives. You can do that. You can be the next story that changes your life. If you want help doing it and building a successful wholesaling business, you can click on and book a call right from that website. Book a call with our team. And if we like what you have to say, we just might invite you to be part of the tribe. Until next time, take care everyone.

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