Posted on: May 06, 2019
WI 270 | Closing Your First Deal

 

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!

 

RESOURCES:

How Hustle And Drive Helped A New Rhino Close His First Deal With Joshua Hernandez

Episode Transcription

We’re interviewing one of our students that went through our program and have done a couple of deals. He’s going to share his story step-by-step, how he did one of his deals. This is something you can read about and already get some action, gold nuggets, tips, and tricks that you can implement in your market right now.

In this episode, we have Joshua Hernandez. This is what’s pretty dang amazing about this. As you read this story, he was 22 years old in 2019. I didn’t start until I was 32 years old. Where would I be now had I had a ten-year start? I’m super excited that at 22 years old, he’s succeeding, but also for his future. 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 2018. He did a deal a few months later in December 2018, and now he’s closing on yet another deal and has a couple of other ones in the pipeline ready to go. He’s going to share step-by-step how he did his first wholesale deal. Get a piece of paper, get a pen out, and get ready to jot down your gold nuggets. Let’s bring on Mr. Joshua Hernandez.

Joshua, how are you?

I’m doing great. Thanks for having me on. It’s a real pleasure.

I’m excited to bring your story out to the world because there are not many people that dare or have the confidence at 22 years old to get right out there and go into it. What got you into wholesaling?

Before joining the Tribe, I didn’t even have any experience in real estate or anything. My goal was to play professional soccer, so I was mainly chasing that dream. After the summer, I was like, “If I’m not in a professional team or anything like that, I need to find some way of making money.” I was searching for different things on YouTube, like how to make money and stuff like that, because I didn’t like college. I wasn’t doing my homework when I would go, so I figured it wasn’t worth it.

You’re the spitting image of me. It’s like, “Bad college. I’m not going there.”

Honestly, I had no idea what I was going to be doing. I was praying and trying to find out a way where I could make money. I was working at a shoe store, making minimum wage. It was so bad. Thank God, through YouTube, I was looking at videos, and I found wholesaling. I started watching a couple of videos and I found Wholesaling Inc. Three weeks later, I joined the Tribe.

You took action quickly. This is awesome stuff. You’re simply watching YouTube. You get out there and take action. In September 2018, you joined the program. You’ve been a rockstar at 22 years old, which is incredible. 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. Let’s break that down and get right to the meat and potatoes. Let’s share with Rhino Nation what it is you did to get this wholesale deal. Let’s start right from the beginning. What marketing were you doing, and what kind of list did it come from?

This one was a tax default list. I got it from the county.

They’re people who are behind on taxes, your tax default list.

I got that list from everything that I heard from the Tribe. I went down to the county and got the list. It was $50. I did some mailers, but I had no money to even get a dialer. I was hand dialing every lead from my phone through CallRail. I was going after it like that. A month or maybe two months in, I got a pretty hot lead. She said that they were thinking about moving and all that. I asked if I could go over and check the house. She said, “No. Call me back in two weeks.” I called her back in two weeks, we scheduled an appointment, and we went from there.

This comes from cold calling. Did you have to skip trace the list or does your county already have the phone numbers on it?

I had to skip traced the list. I hired a VA. That way, they could scrub it and make it the right format. After that, I hired a batch skip tracing company to give me the numbers, and I started cold calling after that.

Don’t let a budget crush your dreams, goals, desires, motivation, and drive. You can out-hustle what money couldn’t do.

Here’s the thing that is brilliant, and I want each of you reading this to jot this down. These are gold nuggets that Joshua was sharing with us. It’s the fact that he didn’t let a budget crush his dreams, goals, desires, motivation, and drive. What he did was simply out-hustle what money couldn’t do. Instead of doing the direct mail route or sending out the postcard that was going to cost a little bit of money, he’s like, “No, I don’t have this money,” but he didn’t say, “I don’t have money. I can’t wholesale. Darn it. Shame and woe is me.” No. He put his hustle and drive out there in lieu of money, skipped traced this list, and started cold calling these individuals.

He gets a hot lead a couple of months in. You didn’t give up on week 1, week 2, or week 3. It took a while to get out there and get a hot lead. What does it look like to 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?

It was funny because they had another house that was on my list. I went over to the other house that they supposedly wanted to sell. I was over there and I thought they lived there. I was outside knocking on the door because we scheduled an appointment that Thursday. I was calling them and I’m like, “I’m outside. I’ll be here. I’ll be waiting for you.” They’re like, “Give me a minute.” I waited for 15 to 20 minutes. I called them again and they’re like, “We didn’t see you.”

I’m like, “I’m outside.” 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.” They were like, “You’re at this house. No, we didn’t even live there. That’s another house we have. That one, we’re going to sell in the summer, but we’re looking to sell the one we’re living in now. I don’t know if you’re going to want this one. It has to be gutted. This is for somebody who wants to fix it up.” I was like, “Really?”

At first, they didn’t even sound motivated for that house, but since I didn’t have a lot of leads or anything, I wanted to go out and talk to them, make something happen, and see if there was anything there. They told me, “We’re looking to sell this house that we’re living in.” They ended up leaving so I went over the next week. We started talking. I was there for two hours talking about their life and everything in between.

Building a relationship of trust was the key here. You aren’t sitting there talking about the house. You’re talking about everything that might be in common with you guys.

We were just talking about that, and they told me their story because over the phone, they were like, “We’re tired of it. We’re moving to another city close to Houston.” I was like, “I’ll take a look.” When I got there, they told me that they were planning on selling a year before, but her husband had to go to the hospital. They had a bunch of tragedies, crashes, and stuff like that. They got to the point later on where they were ready to sell, and they were tired of the house. It was a real mess. There were a bunch of things everywhere. The roof was all messed up. It was bad.

It’s not just a distressed situation but the property is also distressed.

Yes, and they had also built another house where they were moving, so they were ready to get out and leave all that behind. They said that if it were up to them, they would’ve sold a year ago, but they had some tragedies and stuff like that.

As you sit there and you’re putting together this deal, what were the key points that allowed this to work for you and went with you? What was it that you were able to do for them that helped them see, “This is the route I want to go.”

I told them, “I can pay cash and close quickly.” They wouldn’t have to pay any commissions or anything like that. They did owe taxes, which was another reason why they wanted to sell it. We were talking and I finally gave them an offer. I had given them an offer through the phone, but that offer was high. As soon as I got there, I was like, “It’s not what I thought.”

You’re like, “I’m going to have to backpedal.”

WI 270 | Closing Your First Deal

Closing Your First Deal: Don’t become a cash buyer’s employee.

 

Some people use that as a strategy but I didn’t even know. That was my honest answer. She even told me, “I know it’s not what you thought. It’s bad. What would you consider giving us?” I shout out a number. I told them $50,000 and the husband was like, “That’s fine.” I was like, “Yes,” but then the wife was like, “No. We want $55,000 or $60,000.” We negotiated a little bit, and it ended off at $65,000.

Afterward, we talked a little more about their life and everything. I didn’t put it on a contract. 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. It doesn’t have to be two weeks,” and that’s what ended up happening.

What did you end up putting it under contract for?

I ended up putting it under contract for $65,000.

Now that it’s under contract, in your mind, you’re like, “This has got to be a deal.” If the home was in perfect condition, what did you think the home could be worth?

Around that time, I was new. I didn’t even know how big of a deal it could have been. I was thinking maybe $170,000 or $180,000. That’s where my range was at. I was scared because the house needed so much repairs. I was like, “I don’t even know if someone will want it. I should’ve got it for $30,000 or something like that.”

You’ve got some spread there where you think it could be fixed up worth $170,000 or $180,000. You got it under contract at $65,000. From there, what did you do? Did you send it out to cash buyers? What did that look like?

I had a list of 100, 120, or something like that and I blasted it out immediately. As soon as I sent it, five minutes later, people started calling me. They’re like, “I’m interested in this house. Is there a way that I could go see it,” this and that. I was like, “No, I have an inspection date next week at this time and this day so I’m not going to let anybody go on before then.” I was getting a lot of responses.

At that time, I didn’t know that was good. I thought that was normal. After that, we scheduled the inspection day but what I messed up on is one of my friends worked at a big wholesaling company here in Houston. They called me up and were like, “We’ll give it to you for this price.” It was $80,000-something. I thought that was good. I didn’t want to go through with that because I heard everything you all talked about how you have to go with the inspection date and don’t just have one cash buyer.

Don’t become a cash buyer’s employee.

I was leaving for Mexico for a family vacation a week after the inspection date. I was worried about how I was going to do it. Sadly, I ended up assigning it to that wholesaling company here in Houston, which was quite good.

What did you end up initially assigning it for? What price?

Building a relationship of trust is the key here. Don’t just sit there talking about the house. Talk about everything that might be in common with you.

$81,000.

There’s a difference of about $16,000. It was under contract for $65,000 and that was $81,000.

After that, I spoke with the homeowners. Since they’re in another wholesaling company, they were doing an inspection date. I got to learn a lot about how they do it and stuff like that. I had to tell the homeowners, “We’re going to have the inspection date on Friday,” and they were okay with that so we did that. We had the inspection date and 35 people showed up. It was packed. I had told the homeowners, “Only a couple of people were going to be coming.” She got mad that a lot of people were there.

I was talking with them and trying to calm them down. They were calm people. I built a relationship with them so they trusted me. Afterward, they had a good turnout. They assigned it for that price and then they closed on it. One thing that was bad and that I messed up on was the taxes. I had told them that I was going to pay a portion of their taxes to help them out, and then later, they started saying, “We don’t want it at $65,000. You’ve got to bump it up to $70,000.”

I was like, “The contract says this and that. We’re not putting in the taxes.” They owed $8,000 and I was going to help them out with $4,000. There was a misunderstanding about the taxes and they would not go through with the deal unless I bumped it up to $70,000. That’s what I ended up doing. I bumped it up to $70,000 and I assigned it to that company. They went off and sold it to another buyer.

An $11,000 assignment fee. Is this correct?

Yeah.

Awesome stuff. You go out there and build a relationship of trust. You did learn things, though. Here’s the best part. You may look back and say, “I should have been a cash buyer’s employee.” If you didn’t learn something from it, that’d be one thing. Now it’s like, “I know to slow down and put it out there to a lot of cash buyers.” This is good learning regardless and it ends up being $11,000. You know what’s coming right now, right?

Yeah. I have been waiting to hear that.

Here you have been listening to the show, listening to the bell, and now this was the surreal moment where the bell has been rung for you for doing an $11,000 deal, which is awesome. You said you had one closing. How much is that one going to be?

I messed up on that one also. It was supposed to be $10,000. That’s what we had on a contract. I learned so I’m going to set it straight next time. The homeowner was like, “I’m not paying for these taxes, this and that.” I was like, “That’s what we agreed on. The taxes were going to be pro-rated and I wasn’t going to pay anything.” 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.

This is good stuff. That’s $15,000 in a couple of months as a 22-year-old, which is phenomenal. I’m proud of you. I appreciate you having the drive to also be on this show so you can share your story and motivate and inspire other individuals that are out there. Even the young guys and girls out there are like, “We can do this at twenty years old?” Yes, absolutely. Joshua is the living proof. I want to thank you for taking some time to share this story. This has been awesome.WI 270 | Closing Your First Deal

No problem. Thanks for having me on. I’ve been waiting for this moment.

It’s a good day. Here’s the way we always like to end the show. We always want to make sure two questions are asked so that we can continue to motivate and end on a high note. First and foremost, we have a lot of beginners that are reading for the first time. They’re like, “What the heck? Is this real? Can this happen? Can I wholesale a deal?” Looking back in hindsight, what would you do differently knowing what you know now?

Definitely have a way bigger cash buyer list because if I did, I could’ve sold it for $20,000. I know they sold it for maybe $6,000 or $7,000 more. That’s what I would have done and stuck with my gut and had the inspection date, whether I was new or not. What I would’ve done differently is to have a bigger cash buyer list.

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.

A book that has helped me, especially in this business and pretty much anywhere else, has been How to Win Friends and Influence People by Dale Carnegie. That book has been good because when I go out and meet sellers, I know how to talk with them, build rapport, and get them to start talking, not just about the house but also about their life and problems.

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 re-read. In fact, I learn more. Something where I’m reading it and I’m like, “I don’t remember this part of the book.” It’s been there. It didn’t stand out as it did during that time that I read.

Joshua, thank you so much. This has been an incredible episode where you shared step-by-step how you did a big deal back in December 2018. You’ve got a deal closing and you’ve got a pipeline that’s going in the future. Keep on rocking and rolling. We’re going to have to do maybe some catch-up episode to see how things are going from the time we did this one until the time we do the next one.

Definitely.

Rhino Nation, this has been another solid episode here on Wholesaling Inc where Joshua Hernandez has shared step-by-step how he did his first real estate wholesale deal. Get out there and start taking action. This can be you. If you want help building your wholesaling business, head on over to www.WholesalingInc.com, book a call with our team and see if it’s a good fit. We would love to help you on your journey to building a successful wholesale business. Until next time. Take care, and we’ll see you in the next episode.

 

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About Cody Hofhine

403Cody Hofhine, a multiple Inc 5000 Business Owner. Co Founder of Wholesaling Inc. the #1 Real Estate coaching program across the nation. Co Founder of Joe Homebuyer the leading Real Estate Franchise. A successful Real Estate investor/mentor and sought after Speaker. Cody has coached over 3 thousand students on how to successfully Build their Real Estate Business through his real estate training as well as help individuals perform at their highest levels with his one-on-one mentoring. Cody used his background in sales to quickly build multiple 7 and 8 figure Real Estate Businesses that all start on the foundation of clarity or Vision and Purpose. Cody loves being with his family and doing crazy tricks behind a boat.

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