Chad Spoolman is a new rhino who has achieved something many wholesaling neophytes aspire for—he closed his first deal just 6 weeks in!
The native from Minneapolis, Minnesota planned his transition to wholesaling full-time for a year and undoubtedly it’s one of the best decisions he has ever made. However, just like most wholesaling newbies, he started not knowing anything about wholesaling. At one point he even felt like it was too good to be true.
What set him apart though is once he figured the whole thing out, he had the confidence he can do it and he threw creativity in the mix.
If you’re a newbie looking for your first deal or someone who would like to leave the 9 – 5 and give wholesaling a try, this episode is for you. It’s full of amazing wisdom and insights and it will inspire you to think outside the box so don’t miss it!
- Aside from following what the Wholesaling Inc. program teaches, Chad did something else to help him find his first deal. He listed down every single person he knew who might want to sell or unload a property one way or another.
- A guy he knew but rarely spoke to turned out to be a motivated seller—he has been holding on to a property for 5 years now and is just happy to get rid of it.
- Using the script, he gathered the relevant information he needed from the prospect and moved forward from there.
- He was able to close the deal 10 days after and walked away $5, 500 richer!
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Tom Krol: Okay guys, he came from Minnesota. He was in the program for five or six weeks and he already did his first deal. We’ve got Chad Spoolman on the line from Minnesota. This guy is such a rock star. I’ve been just chatting with him back and forth and I am telling you what. We are about to learn some lessons about what it takes to do a deal right out of the gate. Just joined the tribe. I am super, super excited. Chad, do you hear me okay?
Chad S.: I can hear you just fine.
Tom Krol: It is great to have you on the line guys. We are going to get started. We’re going to pick his brain. This is Tom Kroll, America’s number one wholesaling coach with Wholesaling Inc. If you don’t know what Wholesaling Inc is, it is the number one way to make a fortune in real estate or in any category of anything that you could possibly do at business or life that I know of, short of winning the lottery, to just make an absolute fortune in a very short amount of time by finding discounted properties. Chad just joined the program and we are going to pick his brain about how he had success right out of the gate. So Chad, I’m really looking forward to it, brother. Before we get started, can you tell us a little bit about who you are?
Chad S.: Yeah, no problem. I am a father of two beautiful little girls up here in Minneapolis, Minnesota.
Tom Krol: Congratulations, that’s awesome.
Chad S.: Thank you. Thank you. Best part about life, right?
Tom Krol: Absolutely.
Chad S.: I am now full time as a wholesaler. I quit my job. Actually, right when I joined up, I had been kind of planning for a year and knew that this is what I wanted to do and knew that the only way I would do it is if I just did it.
Tom Krol: That’s awesome.
Chad S.: So, I am off and running and-
Tom Krol: [crosstalk 00:02:40] let’s get right to it. Let’s get right to it because I want to ask you about that Chad. That is such an interesting story. It is more difficult for people who have a job to get going. There’s no question about that and there are more challenges when your time is given into a nine to five what did you actually do to do that? Because I know there’s listeners out there who are definitely working, some of them are commuting to work right now. Some of them are at the gym listening and you know they’re sitting here and they’re saying, “Well, I work right now. Is it better to get started and work simultaneously or to quit my job?” I love the fact that you quit your job to do it, but how did you know how to do that? I mean, what I mean is to plan for, to save up. How much did you save up? How, what did that look like?
Chad S.: Well, for me, I had a job that I was not able to do any kind of multitasking. I wasn’t able to be on the phone. I wasn’t able to leave. It was very structured and I was very stuck [crosstalk 00:03:32] through your pod. I was actually … I won’t say the brand because I don’t want to get-
Tom Krol: Sure, sure, that’s fine.
Chad S.: I was a luxury German vehicle technician.
Tom Krol: Okay. Okay.
Chad S.: It was very specific and it was very technical work and it was not something that I could stop doing and take a call. There was no back and forth possibility for that.
Tom Krol: Is that basically a car mechanic but you worked on the computers parts?
Chad S.: Yeah. The vehicles I worked on through just the one make that I worked on … you know, we had 50 plus computers on each car. So, it was pretty technical work and you had to be pretty focused.
Tom Krol: Okay. Got it. Okay. Good, good, good. Okay, so how did you decide how much you needed to save up or what was the plan that you put in place to quit your job?
Chad S.: What I did was I figured that if I could … I have every bit of confidence in myself and once I figured out what this business was, I figured out, “Hey, I can totally do this.” So I figured I’m going to give myself a cushion of a year’s worth of money that I need to live on.
Tom Krol: So not salary, but you actually said, “Okay, one of our monthly expenses, then times 12” and then you saved up that amount of money.
Chad S.: That’s what I did.
Tom Krol: You guys, I know we just kicked this show off and it’s really early. You know, pay attention. That is a game changer. You know, that’s a [Kiasaki 00:04:58] move right there. I really am impressed. I mean that’s really something. I don’t know if I’ve ever heard that before and I love it. I think that’s really, really cool. So anyway, go ahead. So, you save that up and then what was quitting day like? How did that work?
Chad S.: It was awesome. I felt like what I would imagine it would be like to be let out of prison.
Tom Krol: Oh yeah, yeah, yeah. I know. Well, that’s good, congratulations. I had to get fired, so I’m impressed I actually had to wait until I get fired and then I started doing deals. So, you quit your job and then did you know you were going to go into wholesaling or were you just kind of looking at real estate in general? What did that journey look like?
Chad S.: A year probably … when I first realized, “Okay, I’m going to get into a real estate investment somehow”. I thought, you know, is it going to be flipping? Is it going to be wholesaling? I didn’t really understand what wholesaling was or that it was in fact a real thing.
Tom Krol: Right.
Chad S.: It’s like one of those sounds too good to be true kind of things.
Tom Krol: Yes.
Chad S.: So, previously that year before I was like, “Whatever it is, I’m going to do it.” Actually just a couple of months before my kind of year deadline was coming up for myself I started listening to your podcast.
Tom Krol: Oh, awesome. Okay.
Chad S.: Yeah. And I was like, well how about that? It is real and there are people really, there are real people … you guys are all very, very kind, sincere people and that really comes through in the podcast and for me that totally, I was like, that’s what I’m going to do.
Tom Krol: That’s awesome. I really thank you. That’s a compliment and I really, I appreciate that means the world. So, that’s good. So, you joined the program and you guys, this is the meat and potatoes. The reason that my team wanted to have Chad on, not just because of the reason I already told you, Chad, which is Chad has a lot of fans in our company. But the other reason was because there is a common thread that runs amongst our most successful students. If you took the top 100 or 200 students in this tribe, there are some common threads. And one of those commonalities is something that Chad used to get a deal, not with a postcard, not with a mail piece or cold call or a bandit sign or driving for dollars or SEO or PPC or Facebook ads or skip tracing or whatever else that we’re all doing.
He used just, how would I describe this? I think I would describe it as like a belief system or when you make a decision like Tony Robbins talks about that you’re going to make a decision, a decision is made in an instant, and that when you make that decision … you get in this life not what you want, but what you can’t live without. And Chad did it and I’m going to tell you how he did it. He’s going to tell us how he did it here in a second. But I want you to pay attention to not just the strategy and the tactic of this completely unique way. I’ve never heard of anybody starting to program this way and getting a deal. But I want you to hear how he did it and what he did. Let’s talk about that. You were kind of briefly telling me, you started the program, you did the first few steps of finding some real estate investors, and then you made a list of people who, what? You tell us. Tell us about this journey. How did you do it?
Chad S.: I just went through a mental inventory of everybody that I knew. I went through all my contacts in every form I have them and I just thought about it. I was just like, “I’ve got to know somebody that needs to sell.” That needs to sell me a house, not just sell the house, that needs to unload something that’s not typical retail type product.
Tom Krol: Now. So, what you basically did is you basically made a list of every single person in your life that you thought may possibly either want to or be interested in selling a property or unloading a property for one reason or another.
Chad S.: Right.
Tom Krol: I love it. This reminds me, one of my mentors a very close personal friend and a mentor of mine is Orrin Woodward. This is a guy who is just a complete beast in the MLM world and he has a great product that I’m a huge fan of and I endorse. And Oren is just … he lives in my town, he’s somebody that we go to the same church, we’ve gotten very close. And you know, it’s funny, in the MLM world, this is something that they do.
I’ve never really even thought about it, but they just basically say, Hey, go out and tell your friends and family.” And I love this idea. I’ve never heard of it before, but it works. So, you put this list together and I know you kind of told me about a handful of stories. How did you, the person that you ended up wholesaling their house, was it an email, a text, a phone call, and what was the communication? You know, tell me the story as if I wanted to do it myself, what would I do? I make this list and then what do I do? How do I reach out?
Chad S.: I narrowed it down to three people that I thought might actually … they had mentioned for one reason or another having a property to get rid of. Few different stories. One of them was a person who had lost a spouse, so he had moved on. He had this house, he ended up selling that house to a neighbor and another was somebody who was longing to move to the country. And they decided to keep that for a little bit longer while they did whatever they were going to do.
And then the third person, he was somebody that I spoke with very rarely, it was just really hard to get ahold of. And I just started texting him, leaving him messages. I knew that the messages were an absolute waste, but I was just trying to make contact. So I kept texting him and he eventually got back to me and you know, joining the program, I just kind of, I had this confidence that I actually was doing something that was legitimate. I finally got ahold of him and I said, “Hey, do you still have this house” that I was hoping he had?
Tom Krol: Was that the first thing you said or did you kind of build some rapport with them?
Chad S.: Oh, no. I definitely reached out to him and just caught up with him as far as life was concerned.
Tom Krol: Okay.
Chad S.: Which I would do with anybody. It’s just being a nice person. I wasn’t just going right for … I genuinely wanted to know how he was doing and what was happening in his life and yeah, turns out that he did still have this house. He had been holding onto it for five years, sitting vacant, just making the absolute minimal kind of a maintenance to the property and paying most of the bills on it. We got together and with a little convincing he started to believe me that yes I will buy the property from him and that it will be a huge to him as far as just getting a big, big piece of drama out of his life and I just moved forward from there.
Tom Krol: Got it. Now, did he give you any resistance or how did you determine the value? I mean, you’re so new at this, right? You’re only a handful of weeks in. What did that look like?
Chad S.: No, I went through the script. I think your script kind of answers all the questions if you can get all of the answers from the seller.
Tom Krol: Sure, okay.
Chad S.: I kind of used that as the basis for the information I gathered from him. I figured out what he needed, how much he owed on it, if there are any other issues with it, what he’d like to get out of it and move forward from there. And I use Zillow just to pull comps on it and I pulled rehabs in the neighborhood to see what kind of what the low and high end was and came up with a value that I thought was realistic and discussed with Sam, what he owed on it-
Tom Krol: Okay, so you’re a licensed appraiser, right? See this is the point, guys, is that it’s your best guess. This is going to be a very short and right to the point podcast and this is a podcast that you should listen to twice because as I’m just sitting here quietly listening to Chad, you will notice he speaks and presents and he has the belief system of the 1%. Just in the way he is moving through this deal, don’t take for granted. We are not on the phone with somebody right now who’s been doing this for 20 years. We’re on the phone with somebody who’s been doing this for five or six weeks. Right? It has a deal. I just want you guys to keep in mind that this is the mindset of … I guarantee you we are going to hear from Chad again and I guarantee you he’s going to be in the top 100 students.
And he said even the top 10 which I believe. This is what it takes. I mean if you listen to … he’s not, there’s no hesitation. He doesn’t really know what he’s doing, but he’s moving forward with confidence and if he make some mistakes, he makes a mistake. But really kind of listen to this from, like, if you re listen to this podcast, listen to his positioning, listen to his mindset, listen to how he speaks when he’s talking about this deal. Keep in mind he has no idea what he’s doing except for just a very loose in some very light instruction from us. Other than that, he’s kind of … he could probably have done this without our course. I just want you guys to keep that in mind. This is the kind of mindset you want to maintain. But go ahead, Chad. I don’t mean to keep cutting you off. I just want everyone to recognize what’s going on here.
Chad S.: Yeah. I eventually got to the point of going over to take a look at the property and because I am not a contractor or an appraiser or really that knowledgeable about construction, I was just kind of shooting from the hip. I was just kind of walking through with, that’s probably going to be five grand, that’s probably going to be five grand, just spitballing it.
I kind of figured out what repairs it needs and weighed that against what he was looking for out of the property. We came to an agreement that worked for him and he was, it worked for him so much so that he was like, “You are not going to be able to pay me that for this house”. Not that I was overpaying it just that it was just essentially covering what he owed on it.
Tom Krol: Did he give you a price before you went out to go look at the property?
Chad S.: He did.
Tom Krol: Okay. He did come off of that price. When you guys saw the property together, like did you lower it or increase or anything like that?
Chad S.: No. I knew what he owed on it and he was essentially telling me that that’s what he wanted.
Tom Krol: Got it.
Chad S.: Like, I just need to be able to not bring money to closing.
Tom Krol: Okay. Got it.
Chad S.: And it had a couple of other issues aside from what was owed. It also had a big assessment with the city because he had been ignoring their notices for the last five years. He racked up a big bill there, which I actually negotiated that away with the city.
Tom Krol: Awesome. Everybody should re listen. Rewind this 15 seconds and just listen to what Chad’s … I’m telling you this is key stuff, guys, because otherwise I’m going to be [inaudible 00:15:27] repeating it the whole time. You can absolutely do that. You can negotiate. I have a property myself personally that we’re renegotiating right now that we’re doing exactly the same thing. I love it. That is so cool. Okay, go ahead. I’m sorry.
Chad S.: Yeah, and then I said, “Okay, worst case scenario, this is what you’ll get out of getting rid of this property more so you will not have to come over here and mow the lawn, pay for the snow to be shoveled, worry about this leaking roof, worrying about pipes freezing up here in Minnesota, which is a real thing.”
Tom Krol: Okay.
Chad S.: For him it was like … once we put the agreement together and signed it, it was such an emotional point for him to just be able to detach from it.
Tom Krol: Right.
Chad S.: And then, he was just like on pins and needles up until the day that it closed, which was only 10 days later, but he’s just like, I can’t believe it. And he’s like, “Now, I need you to come and fix a couple of problems in my life.” He was just so grateful.
Tom Krol: That’s awesome. Motivated seller. This is the key.
Chad S.: I got it. I understood at that point what was happening and what the point of this was.
Tom Krol: All right. That is the main point of this episode, you guys, is I really think that if you have the right mindset, you are going to do this. Whether or not you have a course, whether or not you have instruction, I guarantee you that if our program Wholesaling Inc didn’t exist, Chad would still do the deal. That is amazing. That is great, man. You already are, but you’re going to be in that top 100. You’re a beast. That’s awesome. Now, how are we going to repeat this result? Tell me. And how much, by the way, just for everybody, you made $5,500 on this deal. Is that right?
Chad S.: Yeah.
Tom Krol: That kills me. That kills my personal, I think my first one was 2011? No, $1,200. Oh man, I don’t even remember anymore. It was-
Chad S.: [crosstalk 00:17:11] just like you. I just wanted to get it done. I just want to get that first one done and just move forward.
Tom Krol: Yeah. My first one, I think it was two grand. I forgot to tell the cash buyer that he had to pay closing costs. I had to follow him home to get cash. Yeah.
Chad S.: Can’t imagine how that would work.
Tom Krol: No good, it was no good. All right, so what’s the game plan? Where are you in the course now?
Chad S.: Okay, so I think I’m on the last round. I just got through Todd’s VA gauntlet and I had just because out of necessity, I just went on and hired a VA to handle the mailing list that I’m working on.
Tom Krol: Okay.
Chad S.: And just as a little side note, just regarding the negotiating with the city on his assessment, he had a $6,000 assessment. I worked it down to $800 and I didn’t even … it’s tough calling it negotiating even though that’s what it was. It was more so I just went and introduced myself to the person in the finance department of the city and just sold what was going to happen with this house. If we could take care of this. I tell them, “Hey, you’re going to get a house back on the, you know, role that is going to be a nice house instead of the worst house in the neighborhood.
Tom Krol: You did that in person?
Chad S.: More than happy. Yeah.
Tom Krol: See? You guys … I think because now I’ve been doing this for so many years. There’s things that you’re saying that I just, it’s so funny how the top 1%, the way they act, this is all of the traits like so many people would have called, but Chad got in the car and went to the city and I know you’re saying, “Well Tom, that’s such a little silly thing.” I cannot tell you. This is such a sign of a person who is just going to continue to grow and grow and grow in this business when it’s all grit and determination and perseverance and belief and making a decision and sticking to it. Having clarity, having one thing like Gary Keller talks about … I mean, the fact that Chad got in his car and did that. I’m telling you, you guys, game changers, watch what happens here with this guy. So Chad, that’s amazing brother.
Chad S.: Thank you. It was so worth it. Not only just to meet him, but everyone else you meet going through the city offices to meet him, introduce yourself [inaudible 00:19:19] what you do.
It’s like, “I know everybody in that city office now” and they’re all, you know, especially Larry the guy who helped me out.
Tom Krol: That’s awesome.
Chad S.: He’s like, “This is great. I’m going to send you anybody else that I have that might fit this.” They’re on my team now.
Tom Krol: How many real estate investors do you have on your list now?
Chad S.: I think I’m up to about 230.
Tom Krol: That is incredible. That is awesome. Yeah, so just so everybody knows, one of the first steps in our course is you have to build up your cash buyer list, your real estate investor list and 230 is awesome. The minimum to start mailing for motivated sellers that we always insist on is 150, so Chad again is already exceeding that level, which is awesome. There are people who are not even up to that, who after much more time. So that’s incredible. When does your mail campaign start and which mail list are you going to mail first?
Chad S.: Well, that was actually why I mentioned that about the city because one of my mail campaigns is code violations and up here in Minneapolis there are a ton of little cities right around the city. I just used that same process with every city. I just went and introduced myself to the complaints department, either in person or via email or call them just however I could get ahold of the right person. And it’s been like, I think just talking to these people and letting them know what you’re doing versus trying to like force information out of them for me has been so easy. I’ve got a huge code violation list, huge for me and which is going to be about five or 6,000 from about eight cities I just mailed out two tax delinquent for my county. I just mailed out to a distress property driving for dollars list that I had put together. And then I have high equity absentee another three weeks.
Tom Krol: I would say if you can get from the city eviction list, code violation, tax delinquent, I would definitely hit those hard.
Chad S.: Yeah, I have all but eviction. I didn’t, I hadn’t-
Tom Krol: Yeah, try to get the eviction list. It’s small, but try to get that one. And you could also do from the city is probate, which is key. But yeah-
Chad S.: That’s the other one that’s on my list.
Tom Krol: Okay. Yeah. You know what you’re doing brother. Just make sure you stay focused, come into the support calls, any questions you have and then just massive action. Just remember the guys and girls with the most results are always the ones who have the most success. I don’t have much coaching for you, quite frankly. I don’t know if we’re going to keep this in the podcast or not, but the bigger deals, www.wholesalinginc.com/biggerdeals, make sure you get that.
Chad S.: Right.
Tom Krol: I think that is the key. Yeah, just consistency and bigger deals. And now you did one, just make sure you have total clear … what is your goal right now?
Chad S.: My goal is … I’m just looking at it like monetarily, what I’m looking at is 25K per month throughout the end of this year, actually throughout the next … through July and then, I’m pushing that up to 30K through December. This is per month. And then next year I want to be, I tell all of my friends and my family this, that I want to have a million dollar net business by the end of next year.
Tom Krol: Cool. I like it.
Chad S.: That’s the goal.
Tom Krol: What are you going to spend on marketing next month?
Chad S.: About $2,000.
Tom Krol: Okay, here’s what I’m going to suggest. Number one, make sure that … did you tie that $5,500 yet?
Chad S.: I did.
Tom Krol: Okay, beautiful. Good man. So, make sure you tie it on the 55 which you’ve already done. I would bump that $2,000 to $3,000 and for next month I would up that to a $3,000 or $3,500, get super uncomfortable with it. Make sure you have mail pieces going out every single week. And then I would make my goal for next month. Let’s do five deals next month. And that’s a very attainable crystal clear goal, right? So you’re two weeks away from there now. Let’s start mailing right away. For the next six weeks you should have mail going out every week.
Chad S.: Yeah, and I do right now.
Tom Krol: Perfect. And then, yeah, just bump up your budget a little bit and let’s make your, right now, when you take bigger deals, your average assignment fee, your average assignment fee will go up. Right now I just want lots of deals, I don’t care too much about the assignment fee. If I owned your company next month, I want you to bring in five deals, right?
Chad S.: Okay.
Tom Krol: Next month, bring in five deals. That’s your crystal clear, like Gary Keller … one thing, pumpkin plan, Mike Michalowicz, the one thing that you got to do is five deals and then just maintain that same mindset. The million dollar net business is nice, but that’s so far away. And you know, what is a million dollars and is that really important? I would say it’s more-
Chad S.: It’s not, I just don’t know how to make a goal in this business yet because it’s so new. I just have to figure out how to break it down into quarters and months and everything. But that’s excellent. I love the idea of five deals next month.
Tom Krol: Yeah. Five deals next month. You could totally do it. Right. Shoot for like six or seven, so you hit five and the other thing is you are in … well, yeah, okay. So you’re close to Wisconsin.
Chad S.: I am.
Tom Krol: You know what I would do is I would drive across … yeah, you’re right on the borderline there. Okay. Corey and Carrie [Remnint 00:24:28] is her last name. And just go into the forum and just ask for Cory’s number and I would have lunch with him. Those are two that’s a couple that came into our tribe just recently and absolutely exploded right out of the gate.
And they’re so close to you. You guys can maybe start up a little local group for the North Midwest. I don’t know what that area is, but whatever it is that-
Chad S.: We’re Midwest-
Tom Krol: That Midwest area, you guys can start up a little group possibly right there, but I would definitely get ahold of Corey and Carrie. They just came into the tribe, absolutely exploded right out of the gate just like you, but they had, they’ve done many, many, many deals and have made huge margins. I would start to do that. And anyway, this is a podcast so I won’t go on too long with coaching, but I really, really like your brother. You are a rock star. I’m super impressed and thank you for agreeing to do this podcast. That was, it’s an honor chatting with you here.
Chad S.: Yeah, thank you Tom. Thanks for all that you do. And starting this group, and you, and Cody, and Brent, and Bill, and Lorena, you guys are all just so helpful. I just love it.
Tom Krol: Thank you man. I really, it means a lot. It means the world. Thank you very much. And before I let you go, any last minute parting words of advice for anybody who’s just getting started? Any ideas or strategies, books, tactics, anything like that?
Chad S.: Books, I love books I read all the time.
Tom Krol: Bam, what do you like?
Chad S.: I’ve probably read, yeah, I either have read everything you guys have suggested or it’s in my pile. I just finished Psycho Cybernetics and I just love it as far as personality development and just spiritual development. It’s amazing. I love the Go-Giver. Four Spiritual Laws. I’ll Break.
Tom Krol: I love it. I love it. Good man. All right brother. Some of my favorites. Pattern interruption, tithing and being a servant. That’s basically what Chad just talked about in those three books, so I love it. Good, good, good. Awesome, brother. Thank you very much for doing this. It was an honor having you and we will definitely have a followup podcast and speak with you again soon. I can’t wait to see your results.
Chad S.: Sounds good, Tom. Thanks a lot.
Tom Krol: All right, Chad. God bless. Talk to you soon. Bye. Bye.