There’s this common misconception you have to be an expert in something for you to get paid big. Fortunately, that’s not the case in the amazing and highly profitable world of wholesaling. And the story of this episode’s guest is a testament to this fact.
Trey Avey is a relentless wholesaler from Tacoma, Washington. While he’s still new in the wholesaling world, that didn’t stop him from finding deals and making things happen. In essence, what Trey lacked in experience and expertise, he made up for in determination and willingness to fail his way forward.
If you’re considering getting into wholesaling but hindered by your lack of knowledge and experience, today’s episode is for you. Without doubt, Trey’s story will inspire you to finally give wholesaling a go!
- Trey sent postcards to the code violation list he pulled online.
- From there, he found a highly motivated homeowner looking to sell an inheritance property.
- After putting in an estimated 25 hours of work, he was able to buy the contract for $120,000, sell it for $163,000 and walk away with $43,000 in profit! That’s more money than some people earn in a year!
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 to another episode here on Wholesaling Inc my name is Cody Hofhine I’ll be hosting today’s podcast episode and I’m super excited because we are bringing yet another student that has gone through our program and is just absolutely crushing it. He just did a big deal and I can’t share the number that’s going to be his story and we’re ready to ring the victory bell big on this deal because it ends up being a great, great deal that he did, but for those of you that are just new with us today, maybe it’s the first time listening to the podcast, first and foremost, a huge welcome to each one of you. We’ll be talking a lot about wholesaling real estate. Now, don’t get too confused, don’t overthink it. Wholesaling is just simply the art of finding deeply discounted properties and then there’s multiple ways that you can turn that for a huge profit, but remember the money is in finding the deeply discounted properties.
It’s not in the selling, that’s the easy part. The part that you really, really want to focus on is finding deeply discounted properties over and over again. Because if you can do that, you can become a mega millionaire in real estate. So, today we have Trey Ave, he’s in the Tacoma, Washington, Washington state market, and this guy just landed a beast of a deal. And so we’re going to break this down step by step. So I want each one of you to get a piece of paper, get a pen or pencil, whatever you like to write with or maybe it’s your laptop and go electronic, that’s fine. But get ready to jot down some golden nuggets, because Trey is going to share with you step by step how he just landed this big deal and how it just paid him a great, great, great paycheck. So Trey, my man, how in the heck are you?
Trey Ave: I’m doing well Cody, thanks so much for having me on.
Cody Hofhine: You are so-
Trey Ave: Glad to be here.
Cody Hofhine: … so welcome. So here’s the beautiful thing is, there’s so many people just getting into this Trey, that are just beginning and you’re probably thinking, “Yeah, but I’m just beginning too.” But this is the best part is, someone that’s new to wholesaling, you’re going to be able to share your story and how this basically even just this one deal and I know you’ve done another deal in the past, but how this one deal makes a huge difference, and so your story’s going to resonate with a lot of people, and people are trying to think of how do I maybe escape the nine to five, or the corporate America, or how do I even begin to get into real estate? So let’s have your story just inspire, uplift, and motivate and get people on understand how they can wholesale their first deal.
Trey Ave: Yeah, absolutely. I mean, I’m definitely, wholesaling is a great strategy to get into the real estate game. It depends on where you’re at in your situation, but if you’re willing to give it all and really fail yourself forward, then it’s definitely a great strategy to be in.
Cody Hofhine: So, Good right out of the gates guys, jot that down. Fail your way forward. You’re not going to be perfect right out of the gates. Trey didn’t do anything perfect right out of the gates. I didn’t do anything perfect. In fact, today I still am very far from perfect when it comes to wholesaling. But you fail your way forward. So Trey, tell us a little bit about what got you interested in wholesaling in the first place. What got you really looking into it?
Trey Ave: Yeah, well to be honest, wholesaling is a great strategy to get into real estate. You don’t have to have a lot of funds. I was really wanting to just learn more about real estate. My longterm strategy has always been wanting to just own rentals. So I wanted to learn the business, I wanted to create some cash and eventually pick up these properties myself.
So, I decided wholesaling was a great strategy for me to get into. I mean to be honest, hardly any money, to my name very shoestring budget but I was able to pull things just together enough to be able to get a small deal done and then I reinvested that money back to myself and that has paid huge dividends on as far as getting this second deal under my belt.
Cody Hofhine: I love it. I love it. Now, I don’t want it to sound too easy for those listening. So Trey talks about going on a shoestring budget, not having much funds to start with. This is true. This is a business that you don’t need a ton of money to get into. And in fact, like he said, shoestring budget, but also he has been someone that has taken a lot of massive imperfect action. The guy has gone out there and not wait for a perfect plan. He’s failed his way forward. Is it going to be easy? No. In fact Trey maybe I’ll ask that. Has this been easy?
Trey Ave: Absolutely not. It’s been very difficult to be honest. It’s been very challenging. You’re constantly learning something new every day. You’re constantly having to push yourself. You got to get uncomfortable. You got to sometimes make the difficult phone calls but the thing is, anything great that you go through and accomplish, it’s never going to be easy. And usually the hard things that you go through in life, those have the greatest reward and this deal has completely verified that.
Cody Hofhine: Man, so, so good guys, this is just out of the gates. We’re not even talking the deal yet, but Trey, I mean this is what you hear from all your motivators. This is what you hear from like the Tony Robbins, the Gary V’s. You hear it from Darren Hardy, it is [crosstalk 00:06:07].
Trey Ave: Yeah. A lot of those guys.
Cody Hofhine: It is. And I can tell you listen to these guys, and one of my favorite Jim Rowan obviously, but it’s listening to these guys, but you’re saying exactly what they teach and that is, the hard things are what bring your greatest joys, the hard things what brings your greatest successes. And so, I love everything about this. In fact, maybe you could share a one or two things maybe that… what were some of the hard, maybe challenges you have faced just getting into wholesaling?
Trey Ave: Yeah, well I will say I had a couple, I was basically starting out just like literally handwriting letters to homeowners by driving for dollars around my city and just literally, like I said, shoestring budget, trading I didn’t have a lot of money so I was putting in a lot of time, right? So, I had a couple of properties that I had under contract that just didn’t work out for one reason or another. I had one property from the very beginning that I had everything lined up, the buyer, the numbers worked out and then the seller didn’t want to sign at the very, very end.
So, it’s been a long road and I’ve had a definitely couple deals that have gone sideways, but you just have to keep pushing yourself, you have to keep striving to get better and that’s what I really tried to do and I knew that if I kept going, I knew that if I didn’t give up, that eventually something would fall my way. And you guys talk about this all the time and you’re wholesaling is a numbers game, it’s a numbers game and if you keep swinging enough times, you’re going to hit a home run.
Cody Hofhine: Love it, love it, love it, love it. Well let’s hop right into the meat and potatoes. Let’s go right into this deal that you just recently did that had a great payoff and let’s start right from the beginning. So there might be some times where I might slow you down a little if we’ve missed some of the details so, I’ll kind of keep you going but really just break it down from the beginning. Let’s talk about first and foremost, what was the marketing piece that you’re using? Was it like direct mail, Facebook, like all the different market channels? And then what lists were you actually marketing to?
Trey Ave: Yeah, so for this specific deal that I got completed this came off a code violation list.
Cody Hofhine: What is code violation to help some of the listeners?
Trey Ave: Yes. So, that’s just for one reason or another, our properties come up to the attention of the city and maybe it’s got really tall grass, maybe there’s like stuff all in the yard, maybe there was some squatters broke in the house and the city’s got to come and take care of it. So, with this particular property there was all kinds of stuff in the backyard and I’m pretty sure probably the neighbors complained about it, called the city and then the city has to basically create a file and then send something to the sellers and say, “Hey, you’ve got to resolve this issue.”
Cody Hofhine: Do you have to buy this list or is this something that’s a free list and how do you get it?
Trey Ave: Yeah, this is free list news for my County and it’s a huge list, you really have to go through and sort through the weeds, but I mean there’s definitely gold in that list. And so this one wasn’t hard for me to access, this was actually just online. But like I said, it did take quite a few hours to go through it because there’s a lot of properties in there that are just not great to mail to, they might owe too much on it or maybe someone just bought it, or whatever reason.
Cody Hofhine: Sure. Perfect, perfect. Okay, so you get this list of people that are now on the code enforcement, or the code violation list with the city and then what kind of marketing did you send to them to get them to start to alert them to let them know your marketing for them?
Trey Ave: Yeah, so I just sent them direct mail, so just a postcard in the mail.
Cody Hofhine: Love it.
Trey Ave: And called me up and immediately kind of on the phone call, I could tell there was motivation, that was an inheritance property with this particular property and the daughter was just wanting to be done with it, really just need to sell it. She was moving and it needed a lot of work, you could definitely tell she was ready to sell this thing.
Cody Hofhine: So you were super motivated, but here’s the key thing Trey, I think this is beautiful, is the fact that it was motivated on multiple levels. In fact, it could have made multiple lists. You said this was a deal that was either going through probate or was just inherited by someone in the family, and you didn’t even find it by doing that. You found it by code violation. So the beautiful thing is, when you see that it’s on a code violation list and then you find out it’s going through probate or it was just inherited, recently inherited by someone in the family, this starts to make you realize quickly you’re dealing with someone that no longer, potentially doesn’t want to deal with this property because it’s now even starting to look bad on the outside enough to make the city say, “Hey, clean this up or we got to fine you.”
Trey Ave: Yeah, absolutely. And I could tell just by going through the script even on price, that was a really great indicator. She was willing to give a discount, she had a couple of realtors come and take a look at the property and she knew what she could get before she was listing it, but she’s going to have to put some money into it and so she was ready for an all cash deal.
Cody Hofhine: That’s the beautiful thing I want everyone to listen to what you just said, it’s not everyone is a fit for a real estate agent. And I think so many times in our minds we just think, “Oh, real estate agent can list every home.” Well two agents came out there and they’re like, “Yeah, this isn’t lendable because of this, this and this so, if you’re willing to fix this up, yes, I can list it for you.” And she’s like, “Ah, no, I don’t want to fix anything up. I just want to sell it as is.” Which opens the door now to an investor like yourself.
Trey Ave: Yeah, absolutely. And this was just like a prime example in which a wholesaler was able to fit the needs and it for be a good deal all the way around. And she didn’t have the money to put into it. She didn’t have four or five, $6,000 to get it cleaned up because there was a lot of stuff that would need to be removed and cleaned up for the property just to get it listable. I was really a great fit for her and her needs.
Cody Hofhine: So Trey, tell me some of the things that make you a good fit. I know at Wholesaling Inc we always teach about just serving people, that’s the best way to get to them. What was the approach when it came to meeting this seller and why she ended up going with you, and why she felt comfortable moving forward with you?
Trey Ave: Yeah, I think probably a number of reasons. I think yes, definitely like I said, the motivation was there. She was ready to move on. She needed this out of her life. She was actually moving across this, out of town as well, and so she was ready to get this done. I was really trying to see how we could structure this deal to make sure that she felt comfortable about moving forward. They still had a family member that was living in the house, so we wanted to make sure that they had plenty of time to move their stuff out that they needed. I was able to structure the contract where, “Hey, we can do a 45 we can even do a 60 day close if you need be, to make sure that everyone has enough time to make sure you can get everything buttoned up, right?” This is their mom’s property. Got to go through everything, a lot of sentimental value and you’ve got to make sure that they feel comfortable about moving forward, the property they grew up in.
Cody Hofhine: So a lot of our listers they usually like to know what is the difference of let’s say… well, let me ask you I guess this question is, what would the home be worth if it was in primo, like prime, awesome remodeled condition? We call that ARV, which is after repair value. If this home was all fixed up, what was this home going to be worth?
Trey Ave: Yeah, so all fixed up, I had comped it about 280 but I think it could go anywhere from 280 to 300 depending on what the rehabber did with that. And I say that is because this particular property had a garage that was converted and so you could either reconvert the garage or add a garage and so that would kind of determine up or down on that ARV.
Cody Hofhine: Okay, okay. But I love that you’re going on the lower end because a lot of times we shoot for the sky and I always tell people investors shoot for the safe. Don’t shoot for the, “Oh, we hope we can get 300K.” So that’s awesome. 280,000 and then ultimately I think this is what helps people’s mindset understand when we’re talking about getting home at a deep discount or getting homes at a discount because you’re able to give them cash. You’re able to close quickly. You’re able to buy it as is. Ultimately, what did you get the home under contract for?
Trey Ave: So, ultimately seller was wanting 130 and I was able to get it under contract for 120.
Cody Hofhine: So, and it was probably in a… because this is a good spread. I’m looking at this and I bet you there’s a lot of listeners Trey on this, like “Holy smokes, this home’s were 280, he’s under contract for 120.” But I also want to paint the picture to a lot of the individuals listening, that this home was probably in pretty poor condition.
Trey Ave: It was. It did need a lot of work but, I’ve seen a lot worse properties to be honest.
Cody Hofhine: Sure.
Trey Ave: So it was fairly cosmetic but it was a little bit of a quarters back, at least in more of the back of the house so outside there’s just a ton of stuff. There was a large trash out and then it was a complete remodel inside the house about 1500 square feet and… so yes it was big rehab, but wasn’t the hugest rehab as well. And to be honest, if you just saw it from the outside, just from the street, you’d probably think, “Oh it’s just kind of a normal house right?” And then you walk in and it’s just a complete remodel.
Cody Hofhine: Yeah, yeah. Okay, so you got this under contract at 120 which is… that’s big, if you can get 280 from it, that lets people know… I mean that’s bigger than most people are going to get when they’re putting a home under contract so this is awesome. From there, what do you do? You put the home under contract, what do you do from there?
Trey Ave: Yeah, so next after that I sent it out to my cash buyers to my list and I advertised the contract for 150 and then I had estimated rehab anywhere from about 55 to 60K and then I would try to be conservative like I said, on ARV. I think I put ARV anywhere from 270 to 280 in its current condition and then like I said, you kind of figure out what you wanted to do with the garage situation.
Cody Hofhine: Sure, okay.
Trey Ave: So yeah, I sent it out and [crosstalk 00:16:41]-
Cody Hofhine: Was there a lot of interest?
Trey Ave: Yeah, I had quite a bit of interest and-
Cody Hofhine: Oh. This is so good.
Trey Ave: And I obviously held a property inspection. I had about 10 to 12 people show up.
Cody Hofhine: Uh-huh (affirmative).
Trey Ave: And had about four to five offers and to be honest, my offers were like all across the board I had one like really low, I had one right on what I had sent it out for. I had one that was a lot higher, and that just verified to me again that it’s just like every buyer is going to look at a property differently. Every buyer’s going to have different numbers and so it’s really not up to you on how to value the property, it’s really going to be the end buyer-
Cody Hofhine: That’s so true.
Trey Ave: … but you just try to get it out because everyone is going to work at a property differently.
Cody Hofhine: Well Trey, maybe before we even tell you what you ended up getting the offer for, but help our listeners understand because there’s some value here in what you’re saying, how much or how many cash buyers are on your list.
Trey Ave: I’ve got about probably right now anywhere from 160 to 170. Yeah.
Cody Hofhine: This is crucial Trey. So this is what I want each one of you listening to the podcast today is a 100 and like 50 to 170 cash buyers. The reason why that’s crucial is because of what he just said, there’s going to be people that to them it’s like, “Okay he asked 150, but I think it’s only worth 140, right?” And then you’ve got other cash buyers like, “Oh man, this is like my bread and butter. I love this neighborhood. We know we’re going to get for it and so I’m going to offer you X amount.” And so if you don’t have a ton of cash buyers, you end up being what we call a CBE Cash Buyers Employee. We never want to become those, right?
Trey Ave: Absolutely.
Cody Hofhine: You had a ton of cash buyers. Ultimately, the highest paying cash buyer what was he ultimately saying, “Hey, I’ll buy it for this.” What was that number?
Trey Ave: Yeah, so we had a little bit of back and forth between a couple buyers that were really serious, but we ended up landing on 163.
Cody Hofhine: My good gravy. So, here is a home you put under contract for 120, you’ve got a ton of interest, you’ve got some people saying, “Hey, you could’ve made $20,000.” And then ultimately your end buyer, and if I’m doing my math right, a $43,000 payday to you for this experience.
Trey Ave: Yep, that’s right.
Cody Hofhine: My man. Hold on one second. You know it’s coming. That is awesome. We got the victory bell ringing loud for you, but $43,000 payday now, here’s something that I want… this is going to blow a lot of people’s minds. Trey, if you had to tie down a certain amount of hours, and I want you to actually pat it and go high on this one.
Trey Ave: Uh-huh (affirmative).
Cody Hofhine: But if you said, hey from start to finish and even include just for fun time here, even include the hours it took you to scrub the code enforcement list. Include those hours, include the hours that you took, talking on the phone, going to the house, doing the inspection, talking to cash buyers. All in all if you had to say, these are ballpark on a high end, this is what I’d be in hours. How many hours did you put into this?
Trey Ave: I would probably say somewhere in the 20 to 25 hour range, somewhere like that.
Cody Hofhine: That’s it? You only got to paid that much for… you worked way too hard for this trade? No, just kidding. 20 to 25 hours, this is crazy. I’m writing this down on a paper, so 20 to 25 hours, that ended up paying him more money than most people make in a full year, 12 months.
Trey Ave: Yeah, it’s crazy.
Cody Hofhine: It’s awesome. Now, here’s what’s incredible, being single, now I’m not trying to promote that, “Hey ladies, get out there and get this guy married.” I’m just saying being single, 43K goes a long way. 43K goes a long way with a family, but holy smokes $43,000 that’s awesome, and here you are maybe to kind of finalize things, help the listeners know what it is you plan to do with that 43,000. What do you plan to do so that your business continues to go?
Trey Ave: Yeah, well per your and Tom’s recommendation, I’ve been reading the book Profit First. So I’ve been working on implementing that for my business to really get a solid foundation for my finances and really a lot of that money and just going to go back into the business, back into marketing so that I can really start gaining more and more momentum to start doing more and more deals on a consistent basis because now I actually have some marketing dollars to work with and wholesaling, we always talk about how marketing is the lifeblood of this business, which is absolutely true.
Usually you can track everything back to your marketing, doing it on a consistent basis. How much are you sending out? What are your lists, right? What are your numbers with that? So that’s really exciting and the short answer is, a lot of it’s going to go back into the business.
Cody Hofhine: That’s awesome. That’s the crucial thing. You didn’t hear him say, I’m buying a brand new fancy car, I’m going to buy a brand new fancy house. That’s great, that’s cool. But make sure you put profit first and make sure that business continues to get fed so that you can up your marketing. You can up your game and keep this going. So Trey, that’s absolutely awesome. So it sounds like you’ve mentioned already one book, but is there a book that you would like to share? We always end the podcast asking two questions, a book that you would highly recommend to our listeners that maybe has helped you with maybe mindset, or helped you along your journey that you would recommend to people.
Trey Ave: Yeah, I’m definitely an avid reader. I read a lot and recently I came across the book, Morning Miracle and I have been… So if you haven’t read that book [crosstalk 00:22:35]-
Cody Hofhine: Or is it a Miracle Morning?
Trey Ave: Yeah, Miracle morning.
Cody Hofhine: There you go.
Trey Ave: Yeah, Miracle morning.
Cody Hofhine: I was like, I think I’ve read that one, but mine was Miracle Morning I think.
Trey Ave: Yeah Miracle Morning. It’s been a few months since I’ve read it but, ever since I read that I’ve implemented it and what’s great about this book is it really… you start scheduling time every day to read, and what I love about that, is all throughout the podcast, everyone’s mentioning books, right? So by implementing time to read every morning, you can read all these books that everyone’s mentioning. So it’s not just one book, but you get to read all these books and that’s what I’ve been trying to do is, read as many books as I can and so, reading that book and setting time every single morning to do that, it’s been a game changer.
Cody Hofhine: Awesome. Awesome, I love that book. Next question is, always looking back it’s usually hindsight is usually 2020 so looking back, what would you have done differently to those that are just beginning wholesaling they’re just getting into this and they want to basically copy what you did, what would you do differently or maybe what would you have done the same?
Trey Ave: Yeah, that’s a hard one. I would say that when I was starting out, I was on such a small budget and really just trying to make it happen with anything and everything that I had but to definitely just kind of speed up the process and get more and more deals done more quickly, you definitely have got to have a mentor on your side. You’ve got to have someone in your corner that can lead you the way that’s been there before, otherwise you’re just wasting so much time in the process, on trying to figure everything out yourself which, at the end of the day time is money and you want to get as quick as you can to revenue and more deals on your belt so, that’s what I guess what I would say.
Cody Hofhine: So, so true. I love that. I use it as a philosophy. Can you get there on your own? Yes. A good friend of ours Jay Connor says, you’ll pay for your education regardless one way or the other whether you do it on your own, or go through the mentor but what the mentor does, is it’s almost like a GPS, any one of us can drive to a destination on our own, but it’s always easier when we type it into a GPS. It’s going to help us avoid some of the maybe traffic jams or maybe big accidents and ultimately get to the destination quicker so that we’re either on time, or beating time, or saving time but that’s exactly what a mentor does in all categories, not just for wholesaling, but in fitness, in spiritual, whatever it is you’re looking for, a mentor is like the GPS, they’re going to get you there a lot quicker, a lot safer.
So Trey, my man, thank you so much for being on this podcast episode today. There’s going to be so many people listening to this that are going to be like, “Man, 43,000 in 20 hours let’s rock and roll. Let’s do this.” So, thank you so much for taking some valuable time out of your day to share your story to the viewers that are listening to this podcast today.
Trey Ave: All right. Thank you so much Cody appreciate it.
Cody Hofhine: Okay, Rhino Nation this has been another amazing episode where someone just took massive imperfect action and just took simple instruction, not education but simple instruction, went out and failed their way forward to a $43,000 payday. This could be you. It could be 5,000. It could be 10,000. It could be 50,000 but the whole point is, if you want to change, if you want to get into wholesaling, you’ve got to take action and a ton of it.
If you need help with your wholesaling business, go over to our website, wholesalinginc.com that’s wholesalinginc.com and click on first and foremost the reviews, and you can go over there and watch how hundreds of people are doing this around this great nation to let you know that you can do this too, but if you want you can also book a strategy call with our team, see if we’re a good fit, and then go from there. Thank you guys for joining us on this episode and we’ll see you on the next one. God bless.