If you encounter a challenge, do you immediately throw in the towel and give up? Or do you put your game face on and hustle until you succeed? If you’ll do the latter, then you have something in common with today’s guest.
Joshua Hernandez is a driven 22-year-old from Houston, Texas. While he didn’t have any prior real estate knowledge or experience, that didn’t stop him from giving wholesaling a try.
Just like many new wholesalers, finding and closing his first deal has not been a walk in the park for Joshua. He encountered a few challenges, even committed a few mistakes along the way.
However, the driven rhino didn’t let any setbacks dampen his spirit. He failed his way forward and persisted. And of course, he was rewarded handsomely for his efforts.
If you’re a new wholesaler looking for your first ever deal, you shouldn’t miss today’s episode. Joshua’s wholesaling journey will not only inspire and motivate you, you’ll also learn a few wholesaling tips and tricks you can use to get your own venture off to an amazing start!
- Joshua found his prospect from the tax default list.
- Since he didn’t have money for marketing, he opted to do cold calling instead. After 2 months, he got a hot lead.
- After building rapport with the seller, he was eventually able to purchase the contract for $70,000, sell it for $81,000, and walked away $11,000 richer! Not bad for new rhino with no prior wholesaling experience.
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: You’re listening to another episode here on Wholesaling Inc my name is Cody Hofhine and I’ll be hosting today’s episode, and super excited to be with you guys. For those that might be listening for the first time I want to tell you welcome to Rhino Nation, to the Wholesaling Inc podcast where we talk about wholesaling. And for those that might be new thinking, what in the world is wholesaling? Wholesaling is just simply the art of finding a deeply discounted property that you can then turn for a huge profit and we’re going to be talking about different strategies that you can do and implement and take action on so that you can get your first deal. We’re interviewing one of our students that just recently went through our program and just has done a couple of deals and he’s going to share his story step-by-step, how he just did one of his deals.
So this is something you can listen to and already get some action, some gold nuggets, some tips, some tricks that you can go implement in your market right now. Today we have Joshua Hernandez. He’s 22 years old. This is what’s pretty dang amazing about this. As you listen to this story, a 22 year old, I didn’t start until I was 32 years old. Where would I be today had I had a ten year start? So I’m super excited that at 22 years old he’s succeeding, but I’m also super excited for his future and that’s going to start to unravel slowly but surely for this guy. He’s from Houston, Texas, he started in the tribe back in September, he did a deal a few months later in December, and now he’s closing on yet another deal today and has a couple other ones in the pipeline ready to go and he’s going to share step-by-step how he did his first wholesale deal. So get a piece of paper, get a pen out, get ready to jot down your gold nuggets and let’s bring on Mr. Joshua Hernandez. Joshua, how the heck are you brother?
J Hernandez: Hey man, I’m doing great. Thanks for having me on, it’s a real pleasure. Thanks.
Cody Hofhine: Yeah! I’m excited to really bring your story out to the world because there’s not many people that dare, or have the confidence, at 22 years old to just get right out there and go into it. What got you into wholesaling?
J Hernandez: So before joining the tribe, I really didn’t even have any experience in real estate or anything. I was just… My goal was to play professional soccer, and so I was mainly chasing that dream. And after the summer of that summer, before I joined the tribe, I was like, if I don’t, if I’m not in a professional team or anything like that, I need to find some way of making money. And so I was just searching on YouTube, different things, how to make money, and stuff like that. Cause I really didn’t like college. I wasn’t doing my homework when I would go, so I figured it wasn’t worth it. And-
Cody Hofhine: You’re like a spitting image of me. It’s like “bad college, I’m not going there.”
J Hernandez: Uh-huh (affirmative), yeah. So after that I was just praying and honestly I had no idea what I was going to be doing. I was just praying, trying to find out a way of where I could make money. Not just like, cause I was working at a shoe store making minimum wage was just so bad. And then, thank God, through YouTube I was just looking at videos and I found wholesaling, I started watching a couple of videos and I found Wholesaling Inc then like three weeks later I just joined the tribe.
Cody Hofhine: So you took action quick. This is awesome stuff. So you’re just simply watching YouTube, you get out there and take action. And in September you joined the program. You’ve been a rockstar, again, 22 years old, which I think is just incredible. So let’s go through the journey. Let’s help them understand what that looked like. A few short months after joining the program, you did your first deal. So let’s break that down, get right to the meat and potatoes, and let’s share with Rhino Nation what it is you did to get this wholesale deal. So let’s start right from the beginning. Where was the, what kind of marketing were you doing and what kind of list did it come from?
J Hernandez: Yeah, so this one was a tax default list.
Cody Hofhine: Okay.
J Hernandez: I got it from the County, and I’m-
Cody Hofhine: So people that are behind on taxes, right. Your tax [inaudible 00:05:32] list, tax default. Perfect. Okay.
J Hernandez: Yeah, so I got that list just from everything that I was hearing from the tribe. So I went down to the County, got the list. It was like 50 bucks. And then I did some mailers, but I had literally no money. So I just started, I had no money even to get a dialer. So I was just literally hand dialing every lead from my phone through CallRail. And I was just going after it like that. And I think a month in or maybe two months, I got a pretty hot lead. She said that they were thinking about moving and all that, and I asked if I could go over and check the house, and she said no just call me back in like two weeks. I called her back in like two weeks and we scheduled an appointment and we went from there.
Cody Hofhine: Okay. So this comes from cold calling. So did you have to skip trace the list or does your County already have the phone numbers on it?
J Hernandez: No, yeah. So I had a skid trace the list. I hired a VA that way they could scrub it and make it the right format. And then after that I hired a [inaudible 00:06:38] tracing company to give me the numbers and I just started cold calling after that.
Cody Hofhine: Good for you. So here’s the thing I think is brilliant, and I want each of you listening to this, jot this down. These are gold nuggets that Joshua was sharing with us. It’s the fact that he didn’t let a budget… He didn’t let a budget crush his dreams, crush his goals, crush his desires, his motivation, his drive, what he did is just simply out-hustle what money couldn’t do. So instead of doing the direct mail route, instead of sending out the postcards… What was going to cost a little bit of money. He’s like “No, I don’t have this money.”
But he didn’t say, Oh, I don’t have money. I can’t wholesale. Darn it, shame on me. Darn it, woe is me. No! He just put his hustle and drive out there in lieu of money. And he skip traced this list, and started cold calling these individuals, gets a hot lead a couple months in. So you didn’t give up week one, week two, week three it took a while.
J Hernandez: Yeah.
Cody Hofhine: You get out there and get a hot lead. And then what does it look like? You set up the appointment. What was the big why? So we can help our audience understand how you knew maybe this was a motivated lead or someone that truly wanted to sell.
J Hernandez: Well, I think mainly it was funny because actually they had another house that was on my list and I actually went over to the other house that they supposedly wanted to sell. And I was over there and I thought they lived there. And I was outside knocking on the door because we scheduled an appointment that Thursday and they were like… I was calling them. I’m like, Hey, I’m outside, you know? And they’re like, OK, yeah-
Cody Hofhine: “No you’re not!”
J Hernandez: Yeah, yeah, yeah. And then I was like, okay, I’ll just be here. I’ll be waiting for you, they were like OK give me a minute. And then I waited like 20 minutes then I called them again. They’re like, okay, we didn’t see you. I’m like, yeah, I’m outside, you know? I hung up. They still didn’t come outside. I was like I understand if you don’t feel comfortable with me being here we can work this out another way or whatever.
And they were like, Oh yeah, this house, no, no, we didn’t even live there. That’s another house we have. We’re actually… That one we’re going to sell in the summer, but we want to, we’re actually looking to sell the one we’re living in now. And this one, I don’t know if you’re going to want it. It has to be gutted. Oh man. This is for somebody that wants to fix it up. And I was like, Oh really? Yeah, yeah, yeah.
Cody Hofhine: Yeah, this smells like a deal to me!
J Hernandez: Yeah, because at first they didn’t even sound motivated for that house. But since I didn’t really have a lot of leads or anything, I just wanted to go out and talk to them, make something happen, see if there was anything there. And then they told me, yeah, hey we’re actually looking to sell this house that we’re living in. And I went over there, they ended up leaving so I went over like the next week and we just started talking. I was there for, I don’t know, literally two, three hours now. Two hours just talking about just their life and everything in between, right? And then I finally asked like-
Cody Hofhine: So building a relationship of trust was really the key here. You aren’t just sitting there talking about the house, you’re kind of talking about everything that might be in common with you guys.
J Hernandez: Yeah, yeah of course. And so we were just talking about that and they just kind of told me their story because over the phone they were like oh, we’re just tired of it. We’re moving to another city close by to Houston. And I was like, okay, great. You know, I’ll take a look. And then when I got there, they told me that they were actually planning on selling like a year before, but her husband had to go to the hospital and they had a bunch of tragedies, they crashed and stuff like that.
So now they actually got to the point later on in the year where they were actually ready to sell, and they were just tired of the house. They didn’t… It was a real mess. A bunch of things everywhere, the roof was all messed up and it was bad.
Cody Hofhine: So very… Not just a distressed situation. The property is also very distressed.
J Hernandez: Yeah. And they had also built another house where they were moving, so they were just ready to get out and leave all that behind. They said if it were up to them, they would’ve sold a year ago, but they had some tragedies and stuff like that.
Cody Hofhine: Yeah. Okay. Okay. So what was kind of the key points, as you sit there and you’re putting together this deal, that allowed this to work for you, where they went with you, what was it that you were able to do for them that really helped them see, Hey, this is the route I want to go.
J Hernandez: Yeah, well basically I told them that I can pay cash and close quickly and they wouldn’t have to pay any commissions or anything like that. And they did owe taxes, so that was another reason why they wanted to sell it like that. So we’re just talking and finally I gave them an offer… Well, I had given them an offer through the phone, but that offer was high. And as soon as I got there I was like, Aw man, it’s not what I thought.
Cody Hofhine: No, I’m going to have to back pedal!
J Hernandez: Yeah. And some people use that as a strategy. But I didn’t even know, actually that was my honest answer, you know? But she even told me, Oh yeah, I know it’s not what you thought. It’s really bad. What would you consider giving us?
And I just shout out a number. I think I told them $50,000 and the husband was like, okay, no that’s fine. I was like, yes. But then the wife was like, no, we kind of want like 55-60. So we kind of negotiated little bit, ended off at like 65 and afterwards we talked a little more about… Just about their life and just everything. And then I put it on a contract- no, I actually didn’t put it on a contract till I came back a day later because they said they wanted to think about it. And I told them I’ll give you the night, but I’ll come back tomorrow and let me know if you’re ready to move forward or not. I can give you all some time to move out. Like it doesn’t have to be two weeks. And that’s what ended up happening.
Cody Hofhine: Okay. Yeah. So what did you end up putting it under contract for?
J Hernandez: So I ended up putting it under contract for, what was it? It was $65,000, yeah.
Cody Hofhine: 65K!
J Hernandez: Yeah.
Cody Hofhine: And then now that it’s under contract, you’ve got what you’re… In your mind, you’re like, man, this has got to be a deal. What were you thinking? If the home was in perfect condition, what were you thinking the home could be worth?
J Hernandez: Yeah, so like I said, around that time I was still really, really new. So I was just thinking-
Cody Hofhine: I don’t know. I think it might be this.
J Hernandez: Yeah. I didn’t even know how big of a deal it could have been-
Cody Hofhine: Sure.
J Hernandez: So I was just thinking maybe like 170-180, that’s kind of where my range was at. And so I was kind of scared because the house needed so much repairs. I was like, man, I don’t even know if someone’s going to want, I should’ve got it for $30,000 or something like that. I don’t know. Yeah.
Cody Hofhine: That’s awesome. So you’ve got some spread there where you… Where you think it could be fixed up worth $170-180,000 you got it under contract at $65,000. From there, what did you do? Did you send it out to cash buyers or what did that look like?
J Hernandez: So yeah, I had a list of 120, 100, something like that and I blasted it out, so, awesome. And immediately, as soon as I sent it, five minutes later people started calling me like, hey I’m really interested in this house, is there a way that I could go see it, this and that, right? And I was like, no I’m having an inspection date next week at this time and this day so I’m not going to let anybody go on before then.
And so I was just getting a lot of response, and at that time I didn’t know that was really good. I just kind of thought that was normal. So after that we schedule the inspection day. But what I really messed up on is one of my friends worked at a wholesaling company, like a really big wholesaling company, here in Houston. And they called me up and were like, Hey, you know, we’ll give it to you for this price. Which was, I don’t know, 80 something. And I just thought that was really, really good. And I really didn’t want to go through with that. Cause I heard everything that y’all talked about how you have to go with the inspection date. Don’t let… Don’t just have one cash buyer-
Cody Hofhine: Don’t become a cash buyers employee!
J Hernandez: Yeah, exactly. And I was leaving to Mexico for a family vacation, literally a week after the inspection date. So I was just worrying how I was going to do it. And I ended up… Sadly, I ended up assigning it to that wholesaling company here in Houston, which was quite good.
Cody Hofhine: Okay, okay, yeah! So what did you end up initially assigning it for? At what price?
J Hernandez: 81.
Cody Hofhine: At 81k… So there’s a difference of about 10… 15… $16,000 is that? Under contract at 65, and that was 81K. Okay, now keep going.
J Hernandez: And so after that I spoke with the homeowners and I still… Since they’re another wholesaling company, they were actually doing an inspection date. So I actually got to learn a lot about how they do it and stuff like that. And I had to tell the homeowners, Hey we’re going to have the inspection date on like a Fri… I think it was on Friday. And I told them, and they were okay with that. And so we did that. We had the inspection date. 30 people, 35 people showed up. It was really packed and I-
Cody Hofhine: Holy smokes.
J Hernandez: Yeah. I had told the homeowners only a couple of people were going to be coming. And she got kind of mad that a lot of people were there.
Cody Hofhine: She was like this is the whole neighborhood!
J Hernandez: Yeah, yeah. So I was just kind of talking with them, trying to calm them down and stuff. They were really calm people, so… I built a relationship with them, and so they trusted me. And afterwards, they had a really good turnout and we basically… They basically assigned it for that price and then they closed on it. But one thing, which was bad is that… That I really messed up on was the taxes.
I had told them that I was going to pay a portion of their taxes just to help them out. And then later they kind of started saying, Hey, we don’t want it at 65 you’ve got to bump it up to 70, right? And I was like, well, the contract says this and that, we’re not putting in the taxes. Because they owed $8,000 and I was going to help them out with $4,000 so there was kind of a misunderstanding then about the taxes. And they would not go through with the deal unless I bumped it up to 70. And so that’s what I ended up doing. I bumped it up to 70 and I assigned it to that company. They went off and sold it to another buyer.
Cody Hofhine: Okay, so an $11,000 assignment fee. Is this correct?
J Hernandez: Yeah.
Cody Hofhine: Awesome. Awesome. Awesome stuff. So you go out there, build a relationship of trust. You did learn things though. Here’s the best part. You may look back and say, aww I shouldn’t have been a cash buyer’s employee! But if you didn’t learn something from it, that’d be one thing. But now… Now I know to slow down and put it out there to a lot of cash buyers. And so this is a good learning regardless, and ends up being $11,000 and you know what’s coming right now, right?
J Hernandez: Yeah.
Cody Hofhine: Okay. You hold on Joshua, hold on.
J Hernandez: Yes!
Cody Hofhine: My man! (Laughs)
J Hernandez: I have been waiting to hear that! (Laughs)
Cody Hofhine: Here you have been, listening to the podcast, listening to the bell, and now this was the surreal moment where the bell has been rung for you, my friend for doing an 11k deal, which is awesome.
J Hernandez: Yeah it’s really crazy.
Cody Hofhine: And you said you had one closing today. How much is that one going to be?
J Hernandez: Yeah, so that one, originally I messed up on that one also. It was supposed to be $10,000 that’s what we had on a contract. But again, now I really learned, so I’m going to set it straight next time. The homeowner was like, Hey, I’m not paying for these taxes, this and that. And I was like, well, that’s what we agreed on, that the taxes were going to be [inaudible 00:18:37] and I wasn’t going to pay anything, so put it for $10,000… I had it for $10,000. But since he didn’t want to pay that, I had to pay it for him and I’m going to end up making $4,000 on it.
Cody Hofhine: $4,000, but this is good stuff! That’s $15,000 in just a couple months as a 22 year old, which is just phenomenal. I’m proud of you, man. This is good stuff. I appreciate you having just the drive to also be on this podcast so you can share your story, motivate and inspire other individuals that are out there. Even the young guys now, and the young girls out there, they’re like, Holy cow, we can do this at 20 years old? Yes, absolutely. Joshua’s living proof. So I want to thank you for taking some time today to share this story. This has been awesome.
J Hernandez: Yeah, no problem. Thanks for having me on. I’ve been waiting for this moment.
Cody Hofhine: It’s a good, good, good day, my friend. Now here’s the way we always like to end the podcast. We always want to make sure two questions are asked so that we can continue to motivate and end on a high note. So first and foremost, we have a lot of beginners that are listening to this first time and they’re like, what the heck? Is this real? Is this… Can this happen? Can I really wholesale a deal? Looking back, hindsight, what would you do differently knowing what you know now?
J Hernandez: Definitely have a way bigger cash buyer list because if I did, I could’ve sold it for $20,000. Because I know they sold it for maybe six grand more, or seven grand.
Cody Hofhine: Sure.
J Hernandez: So that’s what I would have done. And just stuck with my gut and had the inspection date, whether I was new or not. That’s what I would’ve done differently is have a bigger cash buyer list.
Cody Hofhine: So just slow down?
J Hernandez: Yeah.
Cody Hofhine: Okay. Okay. Okay. I love that. The second question we always ask is a book that maybe has inspired you or changed your life that you’d want to share with our audience.
J Hernandez: Yeah, so a book that has really helped me, especially in this business and pretty much anywhere else, it has been a How to Win Friends and Influence People by Dale Carnegie, that book. Yeah, it’s been really good because when I go out and meet sellers, I know how to talk with them. I know how to build a rapport and get them to start talking, not just about the house but about their life and their problems. So yeah.
Cody Hofhine: That is awesome. That is a solid book. In fact, that’s a book that I try to read every year, at least once, because it has so much value to reread. In fact, I learn more… Something where I’m reading it, and I’m like, wait, I don’t remember this part of the book. It’s been there. It just didn’t stand out like it did during that time that I read, so awesome. Awesome, awesome book.
Joshua. Thank you so much. This has been an incredible podcast episode where you shared step by step how you just did a big deal back in December. You have a deal closing today. You’ve got pipeline going in the future. Keep on rocking and rolling and we’re going to have to do maybe some kind of a, a catch up podcast, maybe in a few months from now. To see how things are going from the time that we did this one until the time we do the next one.
J Hernandez: Yeah, yeah, okay definitely.
Cody Hofhine: Okay! Okay brother. Well, Rhino Nation. This has been another solid episode here on Wholesaling Inc where Joshua Hernandez has just shared step-by-step how he just did his first real estate wholesale deal. Get out there, start taking action. This can be you! And if you want help building your wholesaling business head on over to www.wholesalinginc.com. Call their team, see if it’s a good fit, and we would love to help you on your journey on building a successful wholesale business. Until next time, take care and we’ll see ya on the next episode.