To say wholesaling is not for the faint of heart is an understatement. However, if you persist and keep pushing forward, the rewards are well worth it. And the wholesaling journey of today’s guest is a testament to that.
Mike Ireland Castanon is a steadfast wholesaling newbie from Houston, Texas. The husband and father of one had three deals fall through before he was able to close his first deal. Fortunately, the determined rhino never allowed those 3 failed deals to define him. He persisted and his efforts paid off big time.
If your wholesaling journey has been challenging so far, it would definitely help if you tune in and listen to Mike’s story. He’ll surely inspire you to endure and keep moving forward!
- Mike sent out tribe recommended postcards to the code violation list and found his prospect from there.
- After spending an hour building rapport and establishing trust over the phone, Mike scheduled an appointment.
- He was able to secure the contract for $165, 000, got an offer of $195, 000, and walked away with $30, 000 in assignment fee. Undoubtedly a massive reward for something he only spent 8 to 10 hours on!
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Cody Hofhine: Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine and I will be hosting today’s episode and I’m super excited. Let’s talk to all of our Rhino Nation. We want to first of all give a shout out. Thank you to to all of our listeners who are listening to this podcast religiously, we have a great testimonials from you guys. We want to thank you for the bottom of our hearts for being the listeners. For those of you that are new to this podcast, what we’re going to be talking about is wholesaling and specifically wholesaling real estate. So wholesaling is just simply the art of finding deeply discounted properties and then turning them for a profit. We’re going to have a tribe member with us today that’s going to be talking about how he just recently did a deal, made a great chunk of money and how he did it.
We’ll be breaking this down step by step. The main thing here, listeners, is pull out a pen, a piece of paper, and get ready to jot down some gold nuggets. Things that you can take action on, add to your business and go out there and get some deals done. That’s what this podcast is all about: delivering action. Actionable items that you can go do today.
Today we have with us Mike Ireland Castanon. He lives in Houston, Texas. He is married with one kid. He’s been in the tribe since November, so he’s been doing it for a few months and just came across his first deal. Now he’s going to share the ups and downs that go with this. Of how he’s had other deals under contract and how they fell through. He will lay it out there exactly how it’s been, and then ultimately we’ll get to the point where we talk about a deal, step-by-step that he just did that made him a great amount of money.
Mr. Mike Ireland Castanon, my friend, how are you doing?
Mike Ireland Ca: I’m doing great, Cody. Thanks for having me.
Cody Hofhine: Oh, we are so glad to have you on and I’m super excited. I obviously know the end game of what this deal size is, and I’m super excited though for our listeners to hear what has taken place over the last a little bit for you.
Fill me in on the gaps, fill our listeners in on the gaps, a little bit about yourself and maybe a little bit about your background.
Mike Ireland Ca: I joined the tribe in early November and you know, never wholesaled or done anything like that before. Currently, and pretty much throughout my whole professional career, I’ve been an outside medical sales rep. Basically I would go from doctor’s office to doctor’s office trying to sell them products or services. And then throughout that time I also got my real estate license thinking I can sell some real estate on the side and have some good side income.
Cody Hofhine: Nice. What got you into, I mean here you are, you’re doing some real estate … What got you ultimately into wholesaling, what got you intrigued about wholesaling and how’d you come across it?
Mike Ireland Ca: Well, with my job I actually, I drive a lot, so I drive anywhere from three to 5,000 miles a month and go into different areas, Houston so large.
Cody Hofhine: Holy smokes, that is a lot of miles.
Mike Ireland Ca: It’s almost a minimum of an hour, maybe an hour and 15 minute drive to my first stop and then back home also.
So, I just try to find a different podcasts and things that help me with traditional real estate. Then I came across wholesaling through another podcast, I forgot what it was called, and I thought it was a unique idea, just never really paid attention to this. Probably, that happened maybe about three years ago.
Cody Hofhine: So you had been to this idea for quite some time it sounds like.
Mike Ireland Ca: Yeah, this idea and other ideas also. I’ve always been one to try to make some extra money through unconventional ways.
It’s funny because throughout my drives, I … you just catch yourself thinking a lot. Thinking of new products or something and I always bring it home to my wife. She immediately shuts them down. But yeah, I came across your podcast Wholesaling Inc. and I actually loved the energy coming out of it and it made me want to listen to it more and more.
Cody Hofhine: Who are these two guys? Bottled up caffeinated beverages ready to explode. What is, what on earth are they doing?
Mike Ireland Ca: Yeah, it was great. It made my drives easier and it was really great information and I love the testimonials on people on the podcast. And I was thinking, you know, maybe, I can look into this a little bit further.
Cody Hofhine: Nice, nice, nice. So here you are now into the tribe a few months now and let’s start deep diving.
I know you just recently did a deal and, so now listeners, this is where it gets really, really good because he’s going to talk you through step-by-step how he did this deal.
So Mike, let’s take it right from the beginning and talk about what list you got this lead from and how you were able to market to this individual.
Mike Ireland Ca: Yeah, definitely. This is a second mail campaign that I sent out and I got the list, it’s actually a code violation list. I had to physically go to the courthouse to get it.
I got the list and there was about, I want to say 2000 addresses on that list. I used direct mail and I mailed out that list as throughout a, I believe a four week period.
Cody Hofhine: Four week period.
So 2000 names are on this list. And you said this was the code violation?
Mike Ireland Ca: Yes.
Cody Hofhine: Okay. So those that are just listening, maybe new to this, code violations simply the people that maybe have received a ticket from the city because maybe their lawn is too long or too high. Or maybe their windows are boarded up and it’s just something that’s an eyesore to the city. So they have these code violations that they give people.
These are individuals now that you’re able to achieve and find this list from your county. From there you had 2000 names that you started mailing to.
Now let’s go through, so now the mails out and you sent a postcard, you said?
Mike Ireland Ca: Yes, I just send postcard. The tribe recommended postcard.
Cody Hofhine: Okay and …
Mike Ireland Ca: I sent that out …
Cody Hofhine: … phones just started a ringing.
Mike Ireland Ca: Yeah, well actually not as much as what I thought.
Prior to that I sent out 5,000 mail pieces to a tax delinquent list and my response rate was less than half percent.
Cody Hofhine: Oh wow. So, probably right out of the gates, here you are new to wholesaling, you’re sending out a lot of mail and it’s a half a percent response rate.
Was there some gut check moments going on here?
Mike Ireland Ca: Yeah, definitely. I mean, throughout the whole process as I was talking to people, I would get really excited and then meet with them.
Then … actually prior to this deal that we’re about to talk about, and I had three other deals under contract all from the tax delinquent list and they all fell through. Two of them fell through because of title issues and the buyers just didn’t want to wait, and one of them just fell through because it was just way too much work. The margins look pretty good, but despite that, it was still too much work and the seller didn’t want to go down, wanted to hang onto it.
Cody Hofhine: So what helped you through this though? Because that’s already a hard thing, and I think there’s some wisdom here you could probably share with people. When you were feeling these gut check moments, what kept you moving forward? What kept you going?
Mike Ireland Ca: Yeah, listening to the podcast two times a week and listening to the coaching calls, I can hear other people having success. And even in highly competitive markets like Houston, we also have … there’s a couple of Houston rhinos too. I would reach out to them and they just would tell me, you know, just keep pushing forward. You know, the deals are out there and that’s exactly what I did.
Cody Hofhine: Perfect. So you kept moving forward, which is huge! Because you’ve already had some things out of the gates that would kind of paralyze a lot of people. But the fact that you had a community that you could rely on, you could come back to the coaching call every week or you can come back to the other tribe members that are in your area or listen to other tribe members through the phone calls that were having success. It pushed you, pushed you, pushed you, which I’m so proud to say you just pushed, you went through it. There was hard times, but you rhinoed on through it.
Now let’s go through this. You’ve mailed out to the code violation. Phone calls are coming in. What did the phone calls sound like when you first answered this deal that we’re talking about?
Mike Ireland Ca: For this one actually, the seller called and didn’t leave a voicemail, but I knew just through the coaching calls this doesn’t matter, if they leave a voicemail or not, just to call them back. That’s exactly what I did.
They didn’t answer. So the following day I called them again and finally got ahold of them.
Cody Hofhine: Already gold nuggets right there, my friend. So many times how many people, I’m assuming even with like medical sales and all, did you say pharmaceutical or medical sales that you did?
Mike Ireland Ca: That’s a medical sales.
Cody Hofhine: Medical sales.
It’s all about followup. It’s all about building relationships and followup, followup, followup. And very few people actually follow up. So the fact that you called, they didn’t answer, but that you didn’t give up on that lead, you called the next day, get them on the phone.
Now walk us through what does that conversation sound like?
Mike Ireland Ca: I went through the script and asked all the right questions to him. I could tell he was a very timid, didn’t want to really give a lot of information. The script actually helped to get more information out of them.
Finally, after just digging through, I spent about an hour on the phone with him. Finally, after digging through, it just turns out that him and his girlfriend, who the property was actually in title to both of them, they split and he’s been there for awhile. He just wanted to move on with his life and the house just reminded him too much of the relationship and I think he just wanted to take the next step for him.
Cody Hofhine: Sure. So, instantly when you’re doing your quick check on the home, what was the home worth after … if it was a fixed up in perfect condition, what would the home be worth?
Mike Ireland Ca: So I ran the numbers and it looked like anywhere from 310 that 315,000.
Cody Hofhine: Okay, 310, 315,000. Were you already knowing this when you’re on the phone with them or did you do research after the phone call?
Mike Ireland Ca: I actually did research after the phone call.
Cody Hofhine: Okay. Okay. So did research, talked to the guy, find out he’s motivated, he does want to get rid of it.
When you book the appointment, what did that look like from there? Like how did the negotiation process start? Was he asking a certain price and the price already let you know that was already a deal or is it more of the circumstances that were going on that made it more sound like a deal?
Mike Ireland Ca: First of all the circumstances made it feel like it was going to be a deal. But when I started getting into, “what do you think it’s worth?” He really didn’t know.
He asked me and I was just very honest with him and I told him, “You know the area better than I do. You lived there forever, so do you have any idea?”
He was told by a friend of his that the house could possibly be worth around 290 and he didn’t believe it, he didn’t believe him. So initially he threw out a number of 245, of what he thought it was worth.
Cody Hofhine: Okay, so 245, you go out there, go on the appointment, and then what does that look like? So that some of our new listeners, when you go on an appointment, is it just straight business go right to the house or what were some of the things that made it work for you, where he really felt comfortable moving forward with you?
Mike Ireland Ca: I set up the appointment and told him, “I would like to go see the property and then we could talk more about what we can possibly offer.”
Like I said, I spent an hour on the phone with him and when I went to go see … actually visit with him in person, I spent almost another hour. Just walking into the house, talking about the situation that he brought up and just try to build some rapport and gain some trust. I was very honest with him of what we do.
It was very funny because when I walked in, I saw a stack of about eight to 10 other postcards and I asked him, “Oh, you know what happened to them? Did you give them a call?”
He was like, “Yeah, but none of them ever called me back.”
Cody Hofhine: Oh wow! So, here people are mailing, but they’re not even following up on the phone calls. Which by the way, to give you credit, he didn’t answer the first phone call to you either and you kept with it. That’s something that’s key here.
But this lets you know, those guys could have called him. And when he didn’t answer the first time, they probably just didn’t call back a second time.
Mike Ireland Ca: Right.That’s what I figured. And that’s exactly what he said. So, spend some time with them throughout the visit and I said, “I’m not sure if I’m going to be your best option, have you thought about listing it with a realtor?”
I disclosed that I had my real estate license, but I’m not looking to list a home.
I told him exactly what we do, “I’m not looking to actually rehab it. I have a network of buyers that I’m actually going to sell it to.”
He was fine with it.
But still at that first visit, he still didn’t want to be solid on a number that, I mean I know earlier he said he, he thinks it’s worth 245, but that he really didn’t say a what he wanted it for. I told him to think about it and I didn’t want to get into numbers until his girlfriend was involved too because she was on the title. So we set up another meeting to where I took him out to lunch and had them both sit down with me.
Cody Hofhine: That’s awesome. So you set up that appointment, you’d go through the whole process. Ultimately, what were you able to put the home under contract for?
Mike Ireland Ca: So after going back and forth with them. I went with the low offer of 150 and they came back to me at 180 and then ultimately we agreed at 165.
Cody Hofhine: One-sixty-five. So originally on the phone it sounded like the 245 is what he thinks it might be worth. Was there repairs and stuff that obviously need to be done with this home?
Mike Ireland Ca: Oh absolutely!
It was in horrible condition. There were stuff all over the place. There wasn’t even gas in the house.
Cody Hofhine: Oh wow! No heat, no nothing.
Mike Ireland Ca: No heat he just used space heaters. There was mold in the house.
Cody Hofhine: It was a pretty distressed property and that’s kind of what the picture I wanted to paint with maybe some of the people listening here is; it’s not that you bought this $310,000 house for putting under contract for 160, but this home had a lot of issues with it. It was very distressed. Like you said, mold, no heat. You had to use plug-in space heaters, but you said you put it under contract, you said, was it 160?
Mike Ireland Ca: One-sixty-five.
Cody Hofhine: Okay 165. From there, what did it look like for … did you start doing like just a traditional assignment? Did you market the contract to cash buyers? Or what does that look like?
Mike Ireland Ca: I marketed to my cash buyers. I was asking for 200. Ultimately set up an inspection date and had three … out of all those buyers only three of them showed up on that inspection day.
Cody Hofhine: How many cash buyers do you have?
Mike Ireland Ca: Six hundred.
Cody Hofhine: Six hundred. So here’s a key thing for our listeners is the fact that you had 600 cash buyers on list and you said three of them showed up to the property.
Mike Ireland Ca: Right.
Cody Hofhine: Okay. And from there, let’s talk them through it. How did this end up being? What did the three buyers say? Ultimately what did it turn out to … what they bought from you for?
Mike Ireland Ca: Yeah. I actually got, out of those three buyers, I got three cash offers. One from each buyer and ultimately I got it assigned for 195.
Cody Hofhine: Good gravy! My math is going to work really quick on this one. So, 165 under contract, sold for 195 for a total profit of $30,000 on this one deal.
Mike Ireland Ca: That’s right.
Cody Hofhine: Is that correct?
Mike Ireland Ca: Yes sir.
Cody Hofhine: My man, you know what’s coming down. Hold on one sec.
Mike Ireland Ca: I’ve been waiting for that.
Cody Hofhine: So Mike, here’s the thing that’s incredible, you should have heard this victory bell like three months ago. Maybe a few months ago, because you’ve had multiple deals under contract that fell through, which must’ve been frustrating. But at the end of the day, you still push forward. Here you have this deal that pays you $30,000. How good does that taste, my man?
Mike Ireland Ca: Oh yeah, it feels great. As soon as I knew what we had and as soon as I knew it closed, it was one of … I mean it was a great feeling. My wife was happy, I was happy.
Cody Hofhine: She’s like, “It’s real! It’s real, what he’s talking about is finally real!”
Mike Ireland Ca: Yeah, it’s basically proof of concept and I didn’t want those other three deals that canceled to define me. Yeah, I was so happy. It was unbelievable.
Cody Hofhine: That’s awesome. What do you look … What does the thirty grand, what do you plan on doing with that? I think a lot of people think you just struck gold and you’re going to go on this huge vacation. My gut tells me you’re probably going to reinvest this into marketing, but what is your actual plan with that money?
Mike Ireland Ca: Out of that, I’m going to use about nine or $10,000 to reinvest into marketing. I just actually just scheduled 9,000 mail pieces to go out over an eight week period. So mainly just reinvesting.
Cody Hofhine: That’s awesome. That’s awesome. And you will continue to have success because you didn’t let some of these things that can paralyze you, can make you pull out of the game, you didn’t let it cripple you. You just move forward. You know, it’s going to be tough, but the reward is so good.
Ultimately, to help our listeners understand, from start to finish, now, I’m not saying over the last six months, but on this specific deal, what do you think that took from start to finish? Thirty grand in your bank account, how many hours?
Mike Ireland Ca: This deal took a month and a half and I would say just from talking to the owner and talking to the buyers and visiting with the owner also, probably around eight to 10 hours.
Cody Hofhine: Eight to 10 hours. That’s the reality. So Rhino Nation listening to the podcast today, that’s the reality, right there, is yes, you’re going to put forth time in the whole entire wholesaling game, but from start to finish on this one deal, eight to 10 hours and here we are with a $30,000 check. Which is a huge, huge payday. I don’t know many professionals that make that kind of money unless you’re Steph Curry or some other, maybe I should say a Houston Rockets guy. Maybe I should say a Harden or something.
Mike Ireland Ca: Yeah, Harden.
Cody Hofhine: Maybe makes that, but not many people do.
In fact, I’ve got beef with you cause you just took out my Utah Jazz.
Mike Ireland Ca: We’re pretty unstoppable this year.
Cody Hofhine: It’s been a good series.
But Mike that’s been an awesome, awesome journey for you. I love seeing that you’re still motivated, pumped to keep going after it again, again, and again. Invest more money into marketing, get the phones ringing and even more, to get more deals.
If you were to start over again though, and we have a lot of listeners that are brand new to this concept. They might be where you were three years ago, just listening to a podcast. What would you tell them? Knowing what you know now, what would you tell them?
Mike Ireland Ca: If there’s any type of interest in something like this, just act on it. Start surrounding yourself with a good support system, start asking the right questions. Go to different networking meetings and just surround yourself with people who are actually doing it. This is real. People are out making a lot of money doing this and it really does work. So I would just say just take action early on.
Cody Hofhine: I love it. I love it.
Secondly, what we’d like to do is if there is a good book, something that you have read in the last little bit, that’d be a book worth sharing to people, and why you’d recommend it.
Mike Ireland Ca: One of the books I’m reading now is, of course, Never Split the Difference, but I would say Profit First. That was a really great book that …
Cody Hofhine: Is it Mike Michalowicz?
Mike Ireland Ca: Yeah, Mike Michalowicz. It teaches you how to allocate, your funds to make sure that you’re profitable and it, and it actually got me to …
Cody Hofhine: It teaches you, really, how to use your accounts wisely. Really. Like that book was how I started my business, is how to pay you first and expenses are the leftover. Versus so many people run their income off of gross revenue minus expenses equals profit. He teaches you gross revenue minus profits, equal expenses. He teaches you to pay yourself first.
Mike Ireland Ca: Yeah, definitely. What I was trying to say is, I was reading this before I even had my first deal, but it allowed me to think of, “Okay, this is what I would do once I get my deal.” So I would imagine and it actually kind of helped me push forward too.
Cody Hofhine: Yeah, perfect! That is a phenomenal book.
And Mike, my friend, I want to thank you personally for being on the podcast and I … so proud of you. That is not an easy task. I want to make sure that everyone that’s listening, it isn’t easy. It’s not an easy thing. It’s not a get rich quick. If it was easy, everyone was doing it, but at the end of the day, Mike, was it worth it?
Mike Ireland Ca: Oh absolutely. It’s definitely worth it.
Cody Hofhine: So that is exactly what I tell each of you listening now. If you have goals and dreams and desires, and your goals are to maybe one day, leave the nine to five stop working for Corporate America. Or maybe it’s just to find side money so you can go on vacation with your kids and your wife or your family and just enjoy life the way you want to enjoy it. That is something it’s going to take sacrifice. It’s going to be hard, but at the end of the day it is worth it.
If you want help on how you can do that, keep listening to this podcast. There’s so many free tips, tricks, gold nuggets that you can learn just here from the podcast. If you happen to want more hands on help, you can definitely go over to wholesalinginc.com that’s wholesaling I-N-C dot com and book a call with our team. We can go over a strategy call, look at it, what is it that you want and see if it is something that we are a good fit, and if we are we can invite you to be part of the tribe and get you your first deal. No different than Mr. Mike that’s been on this podcast today.
Thank you guys for listening and Mikey … Mike, I want to say Mike Ireland Castanon, thank you for joining us today. That’s the amazing stuff we want to hear.
Mike Ireland Ca: Thanks Cody. Thanks Cody. I appreciate everything you guys do. It’s been a real honor.
Cody Hofhine: Awesome. Awesome. Thanks again! And guys, we’ll see on the next episode. God bless.