Today’s special guests joined the tribe just November of 2017 but they are already closing one deal after another. Since becoming tribe members, Fernando and Perscilla has already closed 6 deals.
How did they manage to pull a feat as awesome? The rockstar rhinos from Palm Bay, Florida don’t mess around when it comes to wholesaling—they are not afraid to take massive imperfect actions!
If you think you need to be an expert at wholesaling to succeed, think again. Today’s guests will surely change your mind. Listen in, pay close attention, and have a pen and paper handy. The couple dished plenty of insights and wisdom you need to take note of so you can steer your wholesaling business in the right direction.
- Aside from taking massive imperfect actions, the couple is consistent when it comes to marketing. They sent out postcards and from the second batch they sent to the high equity owner occupants list, they found their seller.
- After building a rapport with seller on the phone, they scheduled an appointment.
- They were able to purchase the contract for $116, 000, was able to sell it for $131, 000 and walked away with $15, 000. Definitely, a massive ROI for staying consistent and taking massive imperfect actions!
- BiggerPockets Podcast 176 with Tom Krol
- Rich Dad’s Cashflow Quadrant by Robert T. Kiyosaki
- Rich Dad Poor Dad by Robert T. Kiyosaki
- The Compound Effect by Darren Hardy
- Think and Grow Rich by Napoleon Hill
- The Go-Giver by Bob Burg
- The One Thing by Gary Keller
- Sean Terry’s Academy
- Wholesaling Inc Reviews
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, welcome to another Wholesaling Inc. podcast. My name is Cody Hofhine. I’ll be the host of today’s podcast, and I am super excited to be with you guys today. Rhino Nation, we love and appreciate you joining us and listening to this episode. We’re excited for all the newcomers that are just listening, maybe for the first time. We are going to be deep diving what is called “wholesaling.” “Wholesaling” is simply the art of finding deeply discounted properties and then turning them for huge profits. There’s a multiple ways of how you can exit, like an exit strategy have to make that money. Each episode will kind of deliver different ways of how these individuals are finding deals, but more importantly, how they’re actually able to make the money. This episode is dedicated 1000% to that as well. And they’ve got some unique things that we’re going to be talking about where Fernando and Priscilla, they are going to literally share some new strategies that are just game changing.
They’re making some great money right out of Palm Bay, Florida. They have one kid, and I am super excited to have them because I’ve just met them as of just a few months ago. They joined the tribe in November of 2017. Just in a few short months that they’ve been with us, they were already doing some deals. But what’s unique about this is these two don’t mess around. They go out and take action. They first heard a podcast of where BiggerPockets interviewed Tom Karol, and Tom Karol gave them a list to take and without any hesitation they got the list and got deals under their belt. They since then have joined the tribe. They have now done two deals since November that have closed. They have three more in the pipeline.
I’m telling you it’s going to be awesome stuff. We’re going to deep dive this and just show you just how much action they’re taking and how they are so involved in real estate. The last six deals, get ready for this, have made them $39,000 right now money, but they have a unique strategy. They’re going to talk about some of the lease options that they do. They have $233,000 total in profit from these six deals. We’ll kind of talk a little bit about that and we’ll deep dive one of their most recent deals that made them a good chunk of money. So Fernando Calderon and Priscilla Zias, I’m trying to be as Spanish and authentic as I can right there my friends. How the heck are you two?
Speaker 3: [crosstalk 00:03:20].
Cody Hofhine: I love it. I absolutely love it. I wish we could do this whole episode in Spanish and have everyone just completely understand where we’re going on this one. You two are such a powerhouse couple, going out there doing a great job. You’re just changing your lives daily, and I’m super excited to have you on the podcast today and there’s going to be so many people that are super excited to hear your story.
So, lets kind of go right into it. Tell us a little bit about each of you. Tell us about how you got started and what got you into wholesaling in general.
Fernando: All right. Hello everybody. It’s so weird that you’re recording this. I used to listen to these podcasts every day. I still do and it’s amazing that wow, I’m here and I’m going to be hearing myself.
Cody Hofhine: That is right. More than just you are going to be hearing yourself, my friend. I’m telling you there’s going to be thousands of people nationwide hearing your voice.
Fernando: Yes. All right, so quick introduction. I’m from Argentina. I came here almost 19 years ago. Right. So I came here when I was 19, so I’m going to be spending half of my life here, half of my life in Argentina. I was always in the search for that something else. There has to be something else out there. It can’t be possible to be working day after day you never get ahead. So one day I was driving my brother’s car, and he let me use because mine broke down. And he has some tapes, and I always put the tapes. I was thinking it was a preaching, but no, somebody let him have ‘Reach That Quadrant’ in audiobook. Reach out for that quadrant, [crosstalk 00:05:09] Cashflow Quadrant. Yes. So I started to listen to that, and it was like midnight and the more the guy was speaking, he was resonating with me, right when he was describing the self-employed person. It was talking to me. Yes, I like to name my price, I take pride on my work, I work whenever I want to, blah blah, blah. And then he says, but if you don’t work, you don’t get paid.
Man, that opened my mind. I stay listening to that book until 2:00 AM, 3:00 AM alone in the car, in the parking lot. And that was the beginning. And then we started learning about real estate. We went to a couple of seminars. Fast forward, we’re here after what?
Priscilla: Eight years of actually doing work.
Cody Hofhine: Eight years. So, Priscilla, were you on board for this right out of the gates too? When Fernando came home and started telling you “Hey ‘Rich Dad Poor Dad’ told me this, we got to do something different.” Were you instantly, “Yeah, let’s do something different.” Or were you hesitant?
Priscilla: Instantly. Because I’ve always been like him, thinking there’s got to be more. I was behind a desk as a secretary for nine years before I got into real estate full-time. This was obviously at the very beginning when we started learning, I was yes, let’s do it. Let’s rock and roll. I found BiggerPockets. I would read BiggerPockets before work and after work. I started going to see houses. I made this poor realtor go take me to see 50 houses, and I did not buy one. But I learned a lot in the process. [Crosstalk 00:06:44]
Cody Hofhine: And she did too, she’s like I will never show Priscilla another house again.
Priscilla: Yes, exactly.
Fernando: It was a good learning experience.
Priscilla: So we started learning back in 2008 and we did our first deal in 2010, but we had the shiny object syndrome, so we were never consistent in one strategy.
Cody Hofhine: I love this. By the way, I’m going to bring up something from Argentina. What part of Argentina are you from? Fernando?
Fernando: Patagonia. That’s south of [foreign language 00:07:18] I was born in Mendoza.
Cody Hofhine: In my hand right now I have what’s called a [foreign language 00:07:25] I should say it in Argentina, [foreign language 00:07:25] I am sipping on mate as we speak.
Fernando: Wow. I got one myself right here.
Cody Hofhine: Nice. I lived in Honduras, as we’ve talked about, for a couple of years, and I served a religious mission down there. The gentleman that was over all the missionaries, he had served a religious mission in Argentina. He was always drinking this drink. And I was like, “What is that?” And he’s like, “Oh, that’s mate.” And he called it [foreign language 00:07:56] I started drinking mate and I’ve ever since I brought it home to Salt Lake with me, and now we have this little Argentine shop in Salt Lake that I buy all my mate from. For everyone listening, this makes no sense to you. It’s totally okay. But it’s a great drink.
Okay, let’s go back to real estate. So with that being said, let’s break down. Let’s get right to the meat and potatoes and let’s go back to the specific deal that you’re going to be talking about. Let’s go right with it. So is this the one that you actually heard from when you’re listening to Tom being interviewed on BiggerPockets, he says, “Hey, go out there.” And he told you a bunch of lists and what was the specific list that you were listening to that you pulled and took massive action on?
Priscilla: So it was the high-equity owner-occupants. I had never thought that owner occupant would be a good list. And so he threw that out and that’s the first one we went with.
Cody Hofhine: Awesome. So you pulled that list and went, where did you go to get that list?
Cody Hofhine: ListSource. At the time, you probably paid quite a bit of money for that list.
Priscilla: We did.
Cody Hofhine: Since then, you probably don’t pay as much?
Priscilla: Not anymore.
Cody Hofhine: Awesome. Awesome. So you went out there, you went to ListSource, you typed in the criteria and you pulled this list from ListSource. Ultimately what did you do from there? Did you hand write postcards? Did you hand write letters? Did you just send it over? What did you do from that point on?
Fernando: We also belong to the Sean Terry’s Academy, the Wholesaling Academy. We use Tom’s list and we use Sean Terry’s postcard. We combine it. That’s what we did, a postcard.
Priscilla: It was the second postcard that got us the call.
Cody Hofhine: The second round?
Priscilla: Right the second round. We sent out a small round of just 700 names. I think eight weeks later, like you guys say, we sent out the second round and that’s when she called, off of that round.
Cody Hofhine: Absolutely love it. So let me point out a couple things to our listeners. First and foremost, before they even join the tribe, they were already action-takers. They were taking massive action. They’ve even combined multiple different mentors here. They’ve got a list from Tom. They use the postcard from Sean Carey. They just took massive action. But here’s the best part. I want you to write this down. For those listening right now, I want you to write this down. These are gold nuggets to be listening to. A. To take massive action. B. That you have to stay consistent. The first time around, they didn’t get a deal. Did they say, “Oh man, this list doesn’t work. I’m done with it?” No, they went out eight weeks later, they sent that list again, those postcards and that’s when this individual called them back. So now that you’ve got the individual calling you, was it instantly when you were talking to this individual that you knew, hey, this is a deal, or did you have to really go through a long phone call with them?
Priscilla: No, I knew it was a deal. Again, we’ve been at this for a while, so I’m not a stranger to phone calls. Once I talked to her, I built the rapport with her. I realized that she did need to sell and she gave me a number right away. The number that she gave me for the area that the house was in was a great number. So it was good for me. And honestly, if I’m able to give people what they want, I’m going to try my best to give them what they want because there’s a reason that she needs that number and she gave me the reason. She had to pay off this mortgage. She had to pay this off, she had to do that. So she gave me her reason as to why she needed that.
Cody Hofhine: She was [inaudible 00:11:36].
Priscilla: So what I did was I asked for permission to bring our daughter and I scheduled an appointment right away with her. So all three of us went.
Cody Hofhine: So cool. And how old is your baby? How’s your daughter? So they can kind of see the story behind this. How old is your daughter currently?
Priscilla: She’s two years old.
Cody Hofhine: Two years old.
Fernando: Two and eight months.
Cody Hofhine: That’s awesome. So she’s two years old. I love this by the way, I love that you’re doing this as a family first and foremost. This is what’s so, so, so, so cool to watch. And we have multiple people in the tribe that do it as husband and wife and I just love it and I love the fact that you are so aware of like, Hey, is it okay that I bring my two year old baby with us? You’re making this like a full on family event. I commend you guys on that. This is absolutely awesome. Keep going.
Priscilla: Thank you. Thank you.
Fernando: One thing I want to add or baby every day she asks, “I go see a new house today?”
Cody Hofhine: That is so awesome. So already at two years old, she’s already getting trained to be like a rock star Rhino right from birth.
Priscilla: Yes sir. A baby Rhino.
Fernando: We left the contract and then she said she needed to think about it for a couple of days. That’s fine. And gave her the couple of days. She called back and she said, “I’m ready to sign.” So I went back and got the contract. Now, this particular deal didn’t fit the traditional wholesaling formula that everybody’s out there for. 70% of ARV minus repairs minus your profit. And that’s the number you need to be at. But because we know lease options, then we said, well we can do something with this and we just locked it up. First day is just get it signed, get the contract and now these will be more for a lease option landlord.
Cody Hofhine: Will you do this real quick before you move on to this? I know there’s going to be so many people on this podcast are like lease option? What in the crud is a lease option? In a very simple easy way, break it down. What does lease option mean?
Fernando: Lease option. It is basically you’re leasing a house and you have the option to buy it at a later time and nobody else can buy it but you.
Cody Hofhine: So you’re putting the home under contract and then you’re going to get a tenant to come in and lease it back from you. So almost like a rental, but is the other mortgage in place from the seller? And maybe on this deal let’s break it down specifically.
Fernando: Let me clarify. If I buy the house, I own the house. And then I advertise it for the lease option. Somebody comes in and for some reason they can not qualify for the mortgage today. I say, “No problem. I’m going to give you enough time to do so.” So let’s do a thousand a month and I’m going to require $10,000 as a down payment, which the legal term is option fee. Now that $10,000 gives you the rights to buy the house at $150,000 for example. And I’m going to give you two years. If the two years come in and you don’t buy the house, you lose, you forfeited $10,000, but I can not sell the house to anybody else during that time. There’s many different ways of structure.
Cody Hofhine: So you actually buy the home on some of these deals and then what you’re doing is just producing or providing a seller finance option where they put a down payment, like a $10,000 payment,, and maybe you bought this home at $100,000 but now you’re going to sell it to them at $150,000. They put $10,000 down, you’re going to make $1,000 a month in rent. But also on top of that, there’s a $50,000 equity spread between there.
Fernando: That is correct, but don’t get confused between seller financing and lease options. They’re are two different things. On the lease option, you’re just providing an option. On seller financing, you’re becoming the bank. You’re financing the house.
Cody Hofhine: So this just an option to buy. You’re going to put money down there to just rent it with the option to buy?
Cody Hofhine: Perfect. Perfect. Let’s break down maybe the initial numbers on this. What did you do? The one that we’re going to be talking about, was it a straight wholesale deal or was it a lease option deal?
Fernando: It’s a hybrid. It’s like a combination. The contract price was four $116,000. We decided not to keep this one because we use private money on most of these deals and the amount that we pay for the private money, it didn’t make sense to keep this one because the rents will not cover the loan plus taxes, insurance or cash flow. Right. So we decided to sell it to somebody else and not keep it. I have these private lender that he wants to become an investor because he sees how we do business. He’s telling me, “Bring me in. I don’t want to lend you more money, just bring me in one of the deals. I want to do what you do.” I said, “Fine.” So after I got this one under contract, I contacted this guy and say, “Hey, I had a great deal for you.”
But the way I structure it with him is I want to sell it to you for $15,000 more. So it wasn’t going to be $131,000. And the way we did it is at closing, we assign it for $5,000 so we got $5,000 on closing. Then he paid cash for it. We created a note and mortgage for the remaining $10,000. So now he’s the owner and he owes us $10K. We use our knowledge and and help him find a tenant buyer, somebody who was going to lease option it from him. So basically we use our resources and we help him get this person. When this person was found, the agreement with this tenant-buyer is $10,000 down and $1,100 a month for an option price of $169,000. On the second closing, with the tenant-buyer, he’s bringing in $10,000 to the table plus the first month’s rent, $1,100, and at the same time this guy is paying us the $10,000 mortgage. So we get paid that remaining $10,000.
Cody Hofhine: That is awesome.
Fernando: Yes, he gets to keep the tenant. So without throwing a bunch of numbers, his return on investment is going to be over 21% of the money that he’s using. so he’s going to be making 21% return as opposed to 10% that he could have made as a private lender.
Cody Hofhine: That is fantastic. So let me do these numbers. So ultimately you found a contract for a home at $116,000 that you are able to turn around, which you are able to sell to a cash buyer that just wanted the deal himself, but you were able to sell to him at $131,000 and ultimately what you got on this deal is for him to get a tenant in place for a lease option, ultimately your cut for finding the deal, which is always the secret guys, this is what I want every one of you listening, the secret, the gold, the value is in finding the deals. That’s exactly what wholesaling is, is the art of finding these deals because the exit strategies, like you can tell from Fernando and Priscilla, is it can go so many different ways. They went to a lease option model on this one and they were able to make $15,000. You guys, you know what’s coming on right now. Hold on one sec.
Fernando: Where is the bell? Ring it!
Cody Hofhine: I love this couple even more. I love your excitement, your enthusiasm, but I love your way to structure deals. There are so many ways, like everyone always asks, “Hey, what’s the best thing to do? What’s the best way to do?” There’s so many ways on the exit side of exiting the property of making money. There’s so many different ways to do it. This is one of those ways that you can actually do it, which I just think is amazing.
So first and foremost, congratulations, because all this comes from your massive, imperfect action with Priscilla. I know you had that up on your whiteboard for so long. Massive imperfect action. You take massive imperfect action. And because of that, your results are on this specific deal, $15,000. But you guys do more than this. You’ve closed, like I said, six deals that have been $39,000 in your pocket upfront, but $233,000 sitting there in profit for when those individuals exercise, the option to purchase, right?
Cody Hofhine: Holy smokes.
Fernando: $2,100 a month that we increase our cashflow.
Cody Hofhine: This gets even better. So you’re renting it meanwhile until they have the option to purchase. And you have cashflow of $2,100 a month. You two are absolute rock stars. You guys need to start a podcast and I need to learn from you guys. Let’s do it.
Fernando: Let’s do it, man.
Cody Hofhine: This is good stuff. What leads back? From here going forward? Is it kind of like whatever comes our way, we kind of just know different ways to structure the deal? Are you mainly going to start focusing on wholesaling and assigning? Or hey, every deal has its unique exit strategy?
Priscilla: Well I think for now it’s wholesaling and lease options. So we’ll wholesale because we do like to wholesale and you know we’ve rehabbed 12 properties in the past. We pretty much know our numbers when it comes to rehabs. We know our markets, so we know what’s a good wholesale, but we’re also going to keep a lot of them for our inventory. Again, because we have over 500 people on our, on our waiting list right now that are seeking to be in our lease option program and we’re just missing inventory. So that’s one of the reasons we wanted to start generating some of these leads is so that we can start helping those people out and helping them on their path to home ownership.
Cody Hofhine: That is phenomenal. Fantastic.
Fernando: One thing I want to mention is the power of the compound effect.
Cody Hofhine: I love that book.
Fernando: Because you know you can make $10,000 as a wholesale fee and be done with it. Now if you put an extra effort in there and you can structure in this way, now you can make you know, $50,000. And of course you don’t do it right away. You don’t make it right away. But you know, if they cash you out in two years, the deal is 50,000 now and cash out in two years. But if you keep adding them to your pipeline, it’s just a matter of time. You keep doing your wholesaling business and then you get three people cash you out, three options. And then $150,000 just coming. That’s the power of the compound effect that you can make more if you structure it in a different way and you can wait.
Cody Hofhine: I love it. You two are phenomenal and I love that you’re thinking about future. You’re not just thinking about money right now, now, now. I think so many times as investors, we want the money right now, now, now, now, now, and you’re saying, hey, if you structure this right, there’s going to be some amazing months coming up in the near future where you’re cash flowing, you’re getting some money right now, month to month, you’re getting an upfront down payment and ultimately when they use their option to purchase, there’s going to be a good payout at that day moving forward. So two years from now and then hopefully every month consistently now you’re having some big, big rewards come take place.
Priscilla: Yes, exactly.
Fernando: Yep. That is correct.
Cody Hofhine: Awesome. Awesome. Now, if you guys were to say, it sounds like one powerful book that you’d suggest is Compound Effect, but if I were to ask you, maybe that is the answer. If you were to suggest a book to all of our listeners listening to your story today, what book would you say is one that they absolutely have to read?
Fernando: There’s so many. But to name a few, the Bible, of course, Ecclesiastes, that’s my favorite book. Then they reached for Cashflow Quadrant. Then Think And Grow Rich, The Compound Effect.
Cody Hofhine: Compound Effect by Darren Hardy.
Priscilla: For me ,it’s The Go-Giver.
Cody Hofhine: Such a good book.
Priscilla: I have to thank you guys so much for introducing me to that book because it just blew everything up for me. I’m like, okay, yeah, I got this.
Cody Hofhine: This is the answer!
Priscilla: That’s that’s the book.
Fernando: The One Thing, that’s the one we’re reading right now.
Cody Hofhine: By Gary Keller?
Cody Hofhine: I love that. So here’s the thing, I want each of you that are listening on the podcast right now. Here’s the thing. I need you to listen and, and really jot down. These two are successful because they pour time into their education, their learning. They put the time, they take massive action, but they’re always learning. Listen to how many books they were able to just spit off quickly, quickly, quickly. Oh my goodness. I know there’s too many books out there, there’s so many books out there that are so good and they are able to just duh, duh, duh, duh. Just put them out there for you guys. Readers are leaders and I will tell you all successful people, every one of them from Robert Kiyosaki when they mentioned that book Cashflow Quadrant, you talked to Robert Kiyosaki. He reads every single day. One of our mentors, Orrin Woodward with Life Leadership worth a lot, mega, mega, mega, mega millions. He reads anywhere from four to six hours a day. I’m telling you right now, successful people read and they read daily. So I want to thank you guys for giving all those gold nuggets on the books that you read.
If you were to start all over, let’s say you’re starting from ground one and you wanted to give our listeners that are just getting started, a golden nugget, a tip that you said, if I were starting from ground zero, what would you have done differently or what would you do the same?
Priscilla: Be consistent, be consistent, always mail out the postcards. Always make the phone calls. Always be your authentic self and bring value, but be consistent. That is what I wish we would have done since day one.
Fernando: My one thing, Cody, will be follow instructions. I’m going to speak in faith, I tend to have this self-employed mentality that nobody else can do it better than me or I’m going to find it in my own way.So when somebody presents to you a working system, something that works because it’s been tested, it’s been proven, and then you start questioning this system, or you want to do it your own way, then that’s when things don’t work. As human beings, we want to do it our way, but if you are humble enough and you’re wise enough, just do what they tell you to without questioning. Just do it. And then you will produce the same results that day they did or that they’re telling you that you’re going to get.
Cody Hofhine: I love it. You two, you are a powerhouse couple. I sure appreciate and love both of you. You guys are an amazing asset to the tribe. It’s people like you that make the tribe even better. And I’m telling you, I would put our community, our tribe up against any community in this great nation. And I sincerely mean it and it’s because of individuals like you, individuals that you hear on the podcast. Every one of you make up this tribe, make up this community and we’re all of an abundant mindset ready to help each other, pour into each other, and make each other better. And it gives people so much hope. People like you give all the listeners out there that may not be wholesaling or maybe considering getting into wholesaling. It makes it that much more special that they can be part of something bigger. They can be part of a tribe, part of a community of go-givers just like you guys. I want to thank you guys so much for being on the podcast and sharing your story.
Priscilla: Well Cody, I want to thank you and Tom and your team because I know you guys have a team of people behind you. You guys are amazing. And like I said, we are not new to this. We’ve been at this for a while, but we were always missing something and it was our tribe. It was having a support system, having like-minded people, having people that are your cheerleaders. We met so many amazing people at the summit, two, three weeks ago, and we’ve been in contact with them and it feels different. After the summer, it just felt very different. So thank you guys for all your hard work and for you guys giving to us all of your knowledge and experience.
Cody Hofhine: You guys are so awesome. Thank you. Thank you. And for all of you listeners out there that are looking for 2018 to be something different, whether it’s wholesaling or not, I would tell you go out there and find a mentor that’s going to teach you, instruct you step-by-step to do whatever it is that you want to do.
And if it is wholesaling, we would love to help you out. Go over to wholesalinginc.com and look at our website and you can hear stories just like Fernando and Priscilla out of Palm Bay, Florida, other students across this great nation that will share their story on what wholesaling has done for them and it will inspire you. It will motivate you to get up and take massive imperfect action and let you know that you can do this.
And if it’s something that you’re interested in, book a strategy call, it’s free. You can book that call with our team and we’ll go over strategy with you for 2018 and if it’s something that you want further help from us and you want to be part of the tribe, we can go through that process and make it so super easy for you so that you can get on your path to success in wholesaling. Thank you so much for joining us listeners. Thank you so much. I hope you guys are jotting down all the gold nuggets that were given and go back. This is going to be a podcast you’re going to want to go back and listen to over and over again because there is so much value given and we will see you on the next episode. Take care guys.