Posted on: February 25, 2019

Are you earning good money but still get this nagging feeling you’re putting your dreams in the backburner? Do you feel like you’re helping others build their dreams instead of working on yours? If so, the story of today’s guest will surely resonate with you.

Kacey Gorringe is a charming and steadfast new rhino from Austin, Texas. While he was already earning a 6-figure income from doing sales, he realised he was not okay with the idea of just helping others build their dreams instead of working on his own. So he decided to become an entrepreneur. While his first venture into entrepreneurship has not been smooth sailing, he was willing to fail his way forward.

Fortunately, his fearlessness paid off tremendously when he discovered an avenue that allows him to be an entrepreneur and earn a lucrative income at the same time—wholesaling. In fact, in his first 3 months alone, he has already earned over $35,000 in revenue. What’s even more awesome is he has another $70,000 in the pipeline!

If you’re considering quitting that job and becoming your own boss, this is one episode you should definitely listen to. Kacey’s story will surely inspire you to also go out there and make your dreams happen!

Key Takeaways

  • How he found his first 2 deals
  • Why he partnered with a local investor and what the partnership looks like
  • What the process of marketing through Google Adwords is like
  • Some of the hurdles he encountered along the way and how he dealt with them
  • How he showed properties to prospective buyers
  • How to create a feeding frenzy among buyers
  • The amazing strategy that can help wholesalers get a higher price for a property they are selling
  • What his game and marketing plans are for the year
  • Piece of advice he’d give to wholesalers who are just starting out
  • 3 traits he attributes his success to
  • 3 books he wants to recommend to listeners

RESOURCES:

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Episode Transcription

Tom Krol: All right, everybody. Welcome to an amazing episode of Wholesaling Inc, the podcast for wholesalers by wholesalers. I love it. We have an amazing guest today. We are going to get right to the meat and potatoes with this guest. This is a guy who came in to our tribe. He has made a fortune in the first three months, an amazing over $35,000 in revenue. He’s got another 70k in the pipeline that’s about to close. It’s amazing. He’s an amazing guy. If he can do it, you can do it, and we are going to get right to the details. We’re going to put them in the hot seat, and we are going to figure out how he did it so that you can do it. We’re going to get those details from him. You guys know this is the no BS, no fluff zone, so we are going to get to do that right now.
Before I do introduce our guest, I want to just please ask if you are a listener, and you have not subscribed, or rated, or reviewed the podcast, please do that right now. If you’re driving, as soon as you get to your office, or back to your house, or wherever you’re headed back from, the gym, I ask you to please be a go giver and rate, and review, and subscribe to the podcast. We have many, many, many downloads and longtime listeners, and not nearly enough reviews. So be a go giver, make the contribution, and it’ll make us feel good. That’s awesome. So, let’s go ahead and introduce this guy who all the girls in our office go goo-goo-ga-ga over. I don’t know what the deal is. I haven’t been in person yet, but I’m looking forward to, because it must be a great adventure to meet him. But he’s Kacey Gorringe. Now it’s orange with a G, so it’s Gorringe, right?

Kacey Gorringe: Yes sir.

Tom Krol: So it is Kacey, and Kacey is in Austin, Texas. Is that right?

Kacey Gorringe: Yes sir.

Tom Krol: Awesome. Well Kacey, thank you for doing this. Thank you for your time. And thank you for helping all of our listeners get their first or next deal using some of your strategies. So just quickly before we kind of deep dive, can you tell us a little bit about you, who you are, and actually hopefully, I didn’t even ask this question. Hopefully you’re single and not married because if you are, I should take back everything I just said about the girls in the office. So I don’t know, but you tell me, tell us a little bit about yourself.

Kacey Gorringe: Yeah, my wife is signing the divorce papers right now.

Tom Krol: Oh man, here we go.

Kacey Gorringe: I am single.

Tom Krol: Okay, good, good, good.

Kacey Gorringe: Exactly. So yeah, I appreciate you having me on the podcast, Tom. I’m honored. So about at the beginning of the year, I had been working for someone, I have a sales background, and it just ultimately boiled down to, you know, I just wasn’t okay with the fact that I was helping build someone else’s dream. And I’ve always had that entrepreneurship bug in me, and I took the plunge, I went into business with two different people, it failed miserably. I think I hold the record for the fastest failed business. It lasted 25 days, but I kept failing forward as we say in the tribe. June 1st I joined the tribe and it’s just been amazing ever since. It’s just, like you said, we’ll deep dive a deal or two. But again, honored to be where I’m at and just very grateful.

Tom Krol: Well we are honored to be a part of your journey. It’s awesome. It’s part of the legacy and the intention of Wholesaling Inc, and I understand you’re in Austin, Texas, which is a great market, a lot of potential, but certainly a lot of competition, and a little bit of a unique market. So I’m glad to see that you are crushing it in Austin, Texas, in such a short amount of time. So very, very cool. So all right guys, so that is enough about Kacey. Let’s get right to the meat and potatoes about how he can help you.
So first of all, I know you’ve had a lot of success in a short amount of time. Let’s talk about the two deals that you’ve already done. My first question to you is how, and I want to specifically focus on one of your exit strategies, but before we do that, tell us a little bit about how you found those first two deals.

Kacey Gorringe: Yeah, that’s a good question. So the first one was actually a Google AdWords campaign. I’ve teamed up with a local investor and now we have a full blown partnership, but he was running just minimal Google AdWord campaigns, and luckily someone reached out to us on that one, and they were in pre-foreclosure.

Tom Krol: Two questions, because I just want our listeners to be able to emulate this. So my first question is, you said that you partnered up with a local investor. Did you do that because you had a lack of funds, or was there some other reason? And what does that partnership look like? How did you do that? How did you find that person? Just kind of quickly tell us a little bit about that.

Kacey Gorringe: Yeah, that’s another valid question. We originally didn’t have a full blown partnership at first, we were just trying to see how we could help each other. We met at a real estate investing meetup group. One thing led to another and now it’s a full blown partnership, and it’s rocking and rolling. I knew that there were still a lot of things that I didn’t know, and I was comfortable giving up a lot of potential equity, just so I could learn and skip ahead a few years, just live vicariously through him, so to speak. And from his experience, I knew that would jumpstart my progression. That’s how we got hooked up in the beginning, and why I went [inaudible 00:06:13].

Tom Krol: Did he have like more money than you, or just more expertise, or did you feel like he was able to help you with your marketing budget?

Kacey Gorringe: All of the above.

Tom Krol: Okay, got it. So I want everybody to hear that because that is important to note. So that is definitely a way to be resourceful. Like Tony Robbins says, we don’t get in this life what we want, we get what we have to have. So Kacey made it happen, which is awesome. So I love that. You also mentioned Google AdWords. A lot of people, they have no idea what you’re talking about. So how did you find somebody to do that? Or did you do that yourself? And how much money did you put into it? What did that look like and where did that ad go to? Did they drive them to a website or to a phone number? So tell us a little bit more about that.

Kacey Gorringe: Yeah, so I believe that he, David, is my partner. I believe he spent $1,000 each month for about two months. And when someone searches on Google, you create ads for certain keywords such as, pre-foreclosure, sell home fast, et cetera, et cetera. When this family clicked on that ad, it sent them to our website, and they then submitted their information and we reached out to them right away.

Tom Krol: Okay, awesome. So who did your website?

Kacey Gorringe: I personally did my own website, but this lead went to David’s website, and he outsourced it to a local company here. And you’ll have to forgive me, I can’t remember their name.

Tom Krol: Okay, so essentially you had somebody build like a, we buy houses website, and the Google AdWord, you hired somebody to do that, and that went to that website where they filled out a form, and then you called them back?

Kacey Gorringe: Yes sir.

Tom Krol: Now this particular deal, I understand, did you take this deal down, and actually bought it and resold it on MLS?

Kacey Gorringe: Yes, on this one we did.

Tom Krol: Okay. So I want a deep dive that. I want to deep dive that. So, this strategy is often referred to as wholetailing, it’s like a combination of wholesaling and retailing. Not my word, not really particularly a big fan of it. I’m not really sure what it means, but essentially, Kacey, you tell me if I’m wrong. You bought the property, you put it on MLS, and you resold it. Tell us a little bit more about that.

Kacey Gorringe: Yeah, so my partner had a private money loan that came in and I think he got it for roughly, 10% and two points. Don’t quote me on that Tom, but I think that’s what he got the money for, and the house literally needed very minimal work. So we just put lipstick on it more or less. And then, my partner’s wife is a realtor, so she listed that for us and it’s sold within two days. I mean it’s an incredible-

Tom Krol: So wait a second, yeah. I want to slow down because that is awesome, and a ton of information in a short amount of time. Before we deep dive this, I just want to ask quickly, what was the homeowners reason for selling at a discount?

Kacey Gorringe: So they were in pre-foreclosure actually.

Tom Krol: Beautiful. Okay guys. So the seller was motivated to sell quick for cash. So they wanted speed and convenience, at the sacrifice for price. That’s number one.
Number two was, you said your partner got private money at 10 and two, so let me explain what that means to everybody. That just means that Kacey was able to secure private money, that means from like a person that you know, like a family member, whoever, a friend, his partner. So they went around, they asked people for money, and somebody lent them money for 10% and two points. Two points means if you borrow $100,000, you pay $2,000, right at that day that you borrowed, it’s called a point. So they paid two points. By the way, that money is very expensive right now. Money is very, very, very cheap, Kacey. So I would definitely encourage you guys also to work with some more lenders because you can certainly… But that’s your first one. Awesome job. And then it’s 10%, so that’s 10% annualized?

Kacey Gorringe: Yes.

Tom Krol: So that means that, if they borrow the money for a year, which it sounds like they only borrowed it for a week or two, but if they borrow for a year, if they borrow $100,000, if they paid 10%, it would be 10% over that year. So 10 divided by 12, they’d be paying that every month. Very, very easy. Okay. So let’s talk about, you bought the property, you put some lipstick on it. Tell me what that means specifically.

Kacey Gorringe: So it just needed a fresh coat of paint and we did put some vinyl flooring in it. But other than that, I mean it was very minimal. It had good bones, really solid house.

Tom Krol: I love it. Okay, very, very cool. And so did you do that yourselves or did you hire somebody?

Kacey Gorringe: We actually hire someone. So we have crews that… My partner, his background is new builds, and fix and flips more or less. So he already had crews in place. I’m kind of the lead generation guy, and whenever we do fix and flips, he takes care of that end. So…

Tom Krol: First of all, let me ring the victory bell for you, because how much money did you make on that deal?

Kacey Gorringe: That one we actually made 19, so we didn’t-

Tom Krol: 19,000, that’s awesome! Hold on for one second, we got to ring the victory bell.

Kacey Gorringe: I’ve been waiting for this. The sweet sound of victory.

Tom Krol: That’s the sweet sound of the victory bell. I love it, so that’s amazing. And I know you’ve done now over 35,000 total, and you have another 70k coming in, that’s amazing also. But let me ask you this, when you were in this process, what were some of the hurdles? Were there any times when you thought, oh, this is not going to work. Anything that you had to kind of overcome either emotionally, or logistically, what did that look like?

Kacey Gorringe: Yeah, absolutely. And you know, dealing with pre-foreclosures, we’ve actually done a couple of other pre-foreclosure deals. The hurdles, mainly are, requesting the total loan payoff from the bank. I’d like to believe that the banks are good hearted people, but sometimes they make you jump through some really unnecessary hoops. So you’re fighting a deadline because obviously there’s an auction date set. And then another hurdle is dealing with these homeowners, they’ve gone through rough times in life obviously, and just trying to sympathize and empathize with them and just come to a win-win agreement.
This deal specifically, they said that they didn’t want anything for the property other than the loan to be paid off. We are actually going to give them some of the proceeds from the sale, because the way we structure things Tom, and if it’s not a win-win, we truly won’t touch it.

Tom Krol: Awesome.

Kacey Gorringe: And so, you know, just giving back, I think it goes a long way. I really do.

Tom Krol: I totally agree. I mean that’s why you’re a rhino, and when you filled out the application we took you in, because we want rhinos who are go givers and that’s awesome. So all right, I love it. That is super easy to understand. So you take the property and then you put it on MLS, it sells in two days. How did you show the property? What did all of that look like?

Kacey Gorringe: So because it was listed with the MLS and the agent, my partner’s wife, she just did the showing of their property to retail buyers in this situation. So I didn’t have anything to do with the showing. She just did all the showing for us and it made it really simple.

Tom Krol: Obviously it’s your partner’s wife. I’m just wondering though, for anybody else who’s out there, did you guys negotiate the rate with her, or did you just pay the normal agent rate, or what did that look like?

Kacey Gorringe: Yeah, we got a slightly less rate, I believe it was, she charged 1.5% as the listing agent, instead of three.

Tom Krol: That’s awesome. Okay.

Kacey Gorringe: Yeah, definitely saves us, you know.

Tom Krol: I just want everybody to understand that when you do use that strategy where you’re taking the property down and then you’re putting it on MLS, negotiate with the agent. Something that we do is, we negotiate what’s called three and one. So our agent gets 1%, the buyer’s agent gets 3%, and we still also create a feeding frenzy by only having one show period. We discount the property significantly on MLS and then we only have one showing for a very short amount of time. And then we bring all the buyers there at a short amount of time. We give them a very short window to look and then we accept all the offers. We tell everyone we’re going to allow the market to drive the price. So that’s something that if you haven’t tried yet, Kacey, you may want to treat it as a sales event, even if you wholetail it, where instead of just putting it on the market. But it sounds like you did awesome. I mean two days is obviously… How many offers did you get on the property?

Kacey Gorringe: First, I believe we had two or three within the first day. The offer that we got was $5,000 more than our list price.

Tom Krol: So here’s if you, take this with a grain of salt, but if you want me to just give you just something to think about. What you may want to do, is you may want to put it on MLS for even a little bit cheaper than whatever you listed it for. Drive a ton of traffic, and then what you do is instead of putting a lockbox, have a showing that’s a week or two out, and anybody who calls in just say, there’s only going to be one showing, it’s on Tuesday at 2:00 between like… or Saturday between 2:00 and 2:30, and that’s it. So essentially you have one showing, you create a feeding frenzy, and then you just tell everybody to put in your highest and best offer, and allow the market to drive the price. This way it’s on the market for a long time. Everybody sees everybody there, and it’s kind of like a feeding frenzy just like before, but now you’re doing it on MLS because you own the property, which is key.

Kacey Gorringe: Yeah, that’s a great idea actually. We structure it that way with the wholesale deals, but we’ll definitely have to try it with the retail ones for sure.

Tom Krol: Yeah, it definitely makes a huge difference. I’ve learned that from the guy who calls me twice in a row when I don’t pick up the first time, and then he calls me right back like you just heard. That is my brother, Todd Toback, who does that all the time to me. So I apologize for the background noise, but that’s actually his strategy. He calls it a feeding frenzy and it works. Absolutely. So I’d definitely try it. It works absolutely with wholetailing, 100% of the time. It takes a little bit of guts because you’ve got to mark it low to create a big enough feeding frenzy to get everybody there. But you’ll see, just like you got an offer 5k more, you’ll get even more than that and multiple ones, which is awesome. So you can check with regulators, make sure it’s all legal, and wholesome, and ethical, but as long as they’re okay with you doing that, it’s an amazing strategy that will certainly get you a higher price for the property.
So awesome. And so I love it. So what’s the game plan now? What does the future hold for Kacey? Tell me about like, what is the game plan for the rest of this year? You know, what does that look like as far as marketing and game plan? What are your numbers that you want to hit? What does all that look like?

Kacey Gorringe: Yeah, I mean it’s exciting man. So e have, we’re closing on another deal tomorrow actually. The contract just came in and that’s going to be about a $40,000 wholesale deal. So really excited on that one. And then we have several under contract. We’re dealing with a few title issues and liens and judgments. On the books right now Tom, we probably have about 200,000 in potential revenue. So we’re just rocking and rolling, and I’m dumping every dollar back into this company. I’m willing to live like no one else for a minute, so I can truly live like no one else in the future. Right, so-

Tom Krol: I love it all man. Now I know why all the girls go goo-goo-ga-ga over you in my office. I mean, these are awesome. I’m falling in love with you. That’s awesome man, I totally agree with you. Live like no one else now, so you can live like no one else later.

Kacey Gorringe: I got that one is from Dave Ramsey, I can’t claim that one.

Tom Krol: Oh okay, okay.

Kacey Gorringe: I mean, I still don’t have any processes or systems in place because it’s still, I’m so new, so I’m running around like a chicken with my head cut off. But I do have a BA that does a few things, so just really focusing on trying to get more automated, and then come next year, I want to be having marketing hit from every angle possible. Digital, direct mail, cold calling, door knocking has been very good to me, but it is definitely not scalable. So, just really trying to focus on creating an actual business. That’s my goal.

Tom Krol: Awesome. Yeah, I mean we can certainly help you with that. Awesome. All right. So before I let you go, one other quick thing. Any piece of advice that you would give somebody just starting out, I know you’re a tribe member so you don’t have to endorse Wholesaling Inc, but outside of Wholesaling Inc, what would you say is like a piece of advice, a book, something that you’ve picked up along the way that could kind of help somebody who’s just brand new who’s listening? They want to start out, they want to make money. They’re not sure if it’s real or they don’t know if they can do it. Anything you would do to encourage those individuals?

Kacey Gorringe: Yeah, absolutely. I think the biggest thing, and for me, Tom, I alluded to this earlier, when I quit that sales job, I mean I was, and I don’t say this to brag, but I was making over six figures and I hated my job. And so it just goes to show that money is not, money doesn’t bring happiness, but I think if people are on the fence, just simply ask yourself, whose dream do I want to build? Do I want to build mine or do I want to build someone else’s? And then once you realize that you want to build your own, I think the biggest thing is just mental conditioning. It’s not easy, no doubt about it, man. It is tough. There are days where I just, even though I love what I’m doing and I’m the owner of my own time, there are times that are tough for sure. So just mental conditioning, and staying focused, and just having grit. I think those are the three traits to success that I’ve employed that have made me relatively successful so far.

Tom Krol: What is your favorite book?

Kacey Gorringe: I thought you’d never asked. So obviously you know, Think and Grow Rich, and How to Win Friends and Influence People are big ones, but I’m going to name some, I actually had written these down. I’m going to name three that I haven’t heard yet and I’ve listened to every podcast. Grit by Angela Duckworth. Phenomenal.

Tom Krol: I love it. One of my favorite books. Not only do I love the book, but I love the author. That woman. Amazing. Amazing. Her background in education. I mean, yeah, and everybody should buy that book and also listen to her Ted talk. She is an amazing individual. So very cool. I’m with you on that one.

Kacey Gorringe: Yes, she is. She is for sure. And then, Start With Why by Simon Sinek.

Tom Krol: Oh, Simon Sinek, brother. You must be a fan of Ted talks too. If you guys haven’t checked out his Ted talk about Start With Why, which is the name of his Ted talk and his book just deep dives that, but that Ted talk is a game changer. That is my favorite Ted talk. Hands down. Nobody else comes close. So I love that book. So I’m with you on that one.

Kacey Gorringe: Right, it’s awesome. Yeah, it really is. And then lastly, this book, it’s a little bit different, but it’s called Meditations by Marcus Aurelius. He was the only Roman emperor that was also a philosopher. Whenever I read a good philosophy book, it just puts things into perspective. You just realize that we worry about such little stuff that just makes no sense. You know what I mean?

Tom Krol: What’s the name of that book?

Kacey Gorringe: Meditations.

Tom Krol: Meditations, and who was it by?

Kacey Gorringe: Marcus Aurelius is his name. Written in like 1100 BC. I mean, it was just insane.

Tom Krol: I will tell you if you like that book, there is a book that my buddy Clayton Morris recommended to be called The Surrender Experiment by Michael Singer. It is absolutely, game changer. It is become very quickly, one of my favorite books. I’m a Christian and it talks about this book, about a lot of like universe and yoga kind of stuff, but what I do is, I just kind of replace the universe with God in his book, and I will tell you that book, The Surrender Experiment, if you like those sorts of books, it changes your whole life. Clayton told me to read it, and I never read it, and I read part of it, I put it down. I was like, yeah, it’s no good. This guy’s a Yogi. Then he’s like, hey, by the way, the guy’s a billionaire, and he owned WebMD, or something like that, and he was affiliate with it. Once they found out I was like, oh maybe I’ll give it a second listen.
So, I actually listened to it and then I liked it so much I bought the book, but the audible version of The Surrender Experiment by Michael Singer, he reads it, it is amazing. So I certainly recommend that one. But I’m with you man. I’m going to get that book by Marcus, and I’m looking forward to checking out the other two I know for sure, and I highly recommend as well, I love that. And I can’t wait to get an update from you. I’m really looking forward to see what kind of great stories you have, and if there’s anything we can do to help, you just call to support, and we are there for you 1000%.

Kacey Gorringe: Awesome man. I really appreciate it, and thanks again for everything. You guys have been absolutely great. Just really appreciate it.

Tom Krol: Honored. Thank you man. Awesome. Well, have a great day and thanks everybody for listening. We’ll talk to you soon.

Kacey Gorringe: Thanks brother.

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