Posted on: May 20, 2019
WI 274 | Imperfect Action

 

While the saying “two heads are better than one” sounds cliche, it works very well when it comes to wholesaling. And the story of our two rockstar guests today is solid proof!

Mason and Travis are business partners and wholesaling newbies. However, even if they’re still both trying to find their way around, the two rockstar rhinos are currently killing it in the wholesaling world. In fact, they’ve already found a total of 7 deals in just 6 months. What’s even more amazing? They are poised to earn a little over $70,000 for those deals!

The story of the two is something many wholesalers are quite familiar with. In a way, both are looking for something that’s fulfilling both monetarily and spiritually. After discovering wholesaling is the best option they have, they took massive imperfect actions, and the rest they say is history.

If you are looking for some much-needed inspiration to get your wholesaling efforts off to an amazing start, today’s episode would be perfect for you!

 

RESOURCES:

How 2 Rockstar Rhinos Found 7 Deals in Just 6 Months

Episode Transcription

You are tuning in to another episode here on the show. I will be hosting this episode where we have not just 1 but 2 rock star rhinos that have done some deals already. They have done four deals. One of them that could be closing for a fifth deal, and then they have two pending deals in the near future. The cool thing about this, all of this adds up to a little over $70,000. They are going to be sharing their story. For those that might be brand new joining the show for the first time, I want to tell you, welcome to the show where we talk about wholesaling real estate. Simply wholesaling is finding deeply discounted properties that you can then put under contract.

From there, you have got so many options on what you want to do to make your money. We are going to talk about one of those strategies. Get out a piece of paper, get a pen or a pencil, and get ready to jot down some gold nuggets because we have with us Mason Mitchell and Travis Bennett from Des Moines, Iowa. They are going to break it down step-by-step how they just did a deal so that you can get out there and take massive imperfect action. Mason and Travis, how in the heck are you guys doing?

We are doing amazing, Cody. We appreciate the opportunity to be on and looking forward to it.

The two of you tell a background story of a little bit about why each of you got into wholesaling and how the two of you were able to meet up and become business partners.

To keep it short, I am originally from Des Moines, Iowa. I moved to Charlotte, North Carolina, for the last number of years of my life. I was always involved in racing. That has been my life and career for a long time. In a development series owned by NASCAR, we won a lot of races and championships but I was at a point in my life where I knew what I was doing was not going to get me to where I wanted to be. I wanted to make a change. I had some real estate influence in my life before with my father and then some other family members. I got to go into YouTube University and read books and stuff.

I wanted to make a change, so I shut everything down. I moved back to North Caroline in August of 2018. I ended up joining the tribe after I read episodes a million times. Next thing you know, I am at a real estate meetup. My business partner, Travis, overheard a conversation of mine, and we met up and started doing deals from there. I will let Travis explain his background in real estate.

Go for it, Travis. Share your background.

My name is Travis. I have been interested in real estate for a long time. I worked in the corporate world, and it wasn’t fulfilling, monetarily or spiritually. I went to YouTube University and read every book that I could find as well. I knew rental properties were going to be the end goal, and furthering down that path, trying to look for business partners in the path.

Fortunately, we tried to look for friends and convince them this was the path to go on. I went to a real estate meetup and met Mason. We hit it off right off the bat and started tackling deals and racing out of the box now and looking forward to adding more deals to our portfolio and getting some more rentals taken down.

The two of you joined the program just within maybe a month of each other. You go and take massive imperfect action on the instruction videos to go to these meetups and local real estate investor associations. You go there to do what the action items have told you to do and end up meeting each other. Now here you guys are. You have done 4 deals that have already closed and 3 future deals. One of them should close but two are pending in the future. Let’s go right into this and the meat and potatoes. This is some good stuff.

A little over $70,000 is what I have written down in what has closed and what we will close in the future. Let’s break down one of your deals and step-by-step how you were able to get this deal like the marketing and everything. Let’s help our readers understand how they, too, can get their first wholesale deal.

We will deep dive into our deals. The marketing source was a bandit sign.

What did you have on this baby?

 

You come to a point in your life where you know what you’re doing, but it’s not where you wanted to be. The first step is to make a change.

 

I believe this one said, “I buy houses. Cash fast.” Something like that. I had a phone number for our call number.

How many bandit signs do you have to put out to get good numbers? Did you just put out one bandit sign or were you putting out a ton of them?

It’s not even like that many at a time but you got to keep them up, though.

Do you feel like they get yanked down a lot? Is that why you feel you must stay consistent that the message is always up because the city is pulling them off or because people break them off? What does that look like?

A lot of all of it, the city or people taking them down. We do not put them in yards of anybody.

We got lucky. It was a crazy winter but we got lucky one night. It was legitimately snowing as we were putting them out. It was huge snow, so none of the city officials were going to go out there and pull them out. Those suckers stayed out there for 2 or 3 weeks. We got pretty lucky. We had a lot of deals during that period but this guy called and we met him.

We had some phone conversations and met back with him and ended up signing the contract to do the deal. It got pretty creative because this was a house that he inherited from his mother a few years back. He lived in it for a while. He inherited another house that he had just moved into, so he needed to get rid of this house.

This guy has inherited multiple homes and wants to pick a different 1 of the 2 versus the one he is currently living in?

This one was not that bad but needed some work. It had a lot of stuff in it and hoarded a lot of stuff for many years. The pain point of it was moving. He did not know what to do. He was not in the greatest health with his back. As wholesalers, as you know, you have to get creative. We got creative and put a little mini team together to move as much stuff as we could out of there to put into his new house. That was a big help for him.

You are bringing up some good points here. Right out of the gate, you get on a phone call with this guy. You can tell that he has inherited a home. There is some motivation there but you are saying what really helped him select you, choose you, was the fact that you are able to solve problems or serve him in a way that maybe other people, when they went in there, weren’t able to do.

I believe so. The funny part was when we were moving him out, and we came across another investor’s postcard in his house. We know that somebody was trying to get it before us. The thing about bandit signs is what people do not realize is that there is a high motivation to begin with when they call you from a sign. We were able to put the team together and move his stuff to his new house, which was pretty fun because the guy is a funny guy. We had a great relationship with him and learned a ton.

WI 274 | Imperfect Action

There is an old saying, “A quick nickel is better than a slow dime.” I am a firm believer in that because if we would not do that, who knows how long it would have been for him to get stuff out of there if you would have gotten stuff there, to begin with? The close process could have been 2 or 3 months long or it fell through. I feel like you just got to do what you must to get the deal done at some thought.

This is crucial, guys. This is something that is pretty unique, and I am looking at this whole structure. I love this because this is exactly what I do. This is exactly what Tom does. It is exactly the way we even coach within the tribe. Just go out there and serve people. Many times, we think it is all about the numbers or the price. When really people are calling you on these postcards, a bandit sign or however you are marketing to these individuals. They are reaching out to you. Everyone knows a realtor. Everyone knows they can list it and possibly get full price but they are reaching out for more.

There is usually some problem, a trial, a hiccup or a struggle that they are going through that they want more than just their home being sold. They want these struggles, trials or challenges also to have a solution for those. As a wholesaler, the best part about this business is the fact that you genuinely get to sit down like Mason and Travis here, sitting down with this gentleman and trying to find a way that is over and above purchasing their home. This is perfect. It is serving the guy. It is helping the guy. It is solving problems. Here you guys are, by doing that, the byproduct was you got a contract to purchase this gentleman’s house. Does that sound accurate?

Without a doubt. The process only took 30 days from signing to closing it. We moved everything.

In the moving, how did that go? Help me understand because I know these details, it sounds like it is little details but these are good things. There are so many readers here saying, “I never thought about doing that.” It is these little things that help. Did you hire a crew or did you say, “Buddies, can you call your friends and say, ‘Can you help me out? I will pay you a couple of bucks.’” What does that look like to make this happen?

I have a few buddies from the high school days that I reached out to, and I am really close to them. We got a little group of them together and, “Here is of hundred bucks, lunch, and a sandwich for everybody.” We spent a good, solid weekend that we got a ton of stuff done. There were a few days here and there that Travis and I and maybe one other person went and moved some stuff. We got a truck and trailer, a couple of trucks, and moved as much as we could.

The guy is super cool and awesome to work with. Side note on this property, there was also a tenant in the upstairs living there. She was moving out as well. That went smooth as heck, surprisingly. It all worked out really well. Travis has an interesting detail. The last thing that we needed to move was the washer and dryer. I couldn’t get it moved when we were in the first time because it had a gas line hooked up to it and the shut-off valve was broken off. We were like, “What the heck do we do?” I was out of town. Travis, I will let you explain this one.

The closing was coming up, so it had to be done that day. I was sick that week even. I physically moved a washer and dryer out of the house into the back of the truck with ice everywhere, all by myself, then put it back into another house in the downstairs basement. Unhooking the gas valve was fun.

What did you do if there was no shut-off? Did you have to shut off the whole main for the house? What did that look like?

That is where I started, and I thought that but I didn’t turn on the right valve. I started spilling gas. I could see the ball inside it, so I held my breath and then closed it. I was like, “That wasn’t fun at all.” I got it done.

Travis called me, and I about lost it.

 

There’s a high motivation to begin with when someone calls you from a sign.

 

“We are going to lose this house.”

I was like, “What am I doing? Is this worth it?”

You move these out. Do you think you shut off the gas? Just so you know, this is the first time I have heard this story, and I have heard every story. You take apart the washer and the dryer. Gas is going everywhere. Are you able to finally shut it off, or is this baby still leaking as we speak?

No, it is closed.

Not that that is done. What were you able to do from there? When you got the home under contract, you helped move this gentleman’s stuff out and move him to a different place. What did you do to make money on this deal? What was your exit strategy, and how did you do it?

With most of the properties that we get in our contract, we take pictures. For a marketing piece together, we use Mailchimp and blast it out to our buyers. We set up an inspection period in there as well, which is a few days later. Most of the interested people come out, and they will look at it. We send out another email that has an offer deadline. The buyers that are interested send an offer. Usually, it is the highest and best or somebody that can close quickly. We sent this out a couple of days later, had people come for inspection, and the seller was great to work with then.

How many people were interested in this? You are marketing the contract, doing an assignment, I am assuming. How many people were like, “I want to come to take a look at this?”

This one was quite a few, actually. This was a good one.

Our market is not a huge market like Phoenix or anything but it is a really solid market as far as how many deals. There is a 600,000 population in one Metro. Our buyer list is close to 100. We want to get some more. That might not sound like a lot but it is a decent amount for this market. This one had maybe close to ten or so people come out to the property and look. We had 6 or 7 offers come in. Travis handles that part of it well with dealing with our investors and buyers.

He is like, “If he can handle the gas line, he can handle the buyers. Let’s do it.”

Offers came in.

 

WI 274 | Imperfect Action

Imperfect Action: You can get consumed with information as much as you want by watching videos and reading books, but you have to take action at some point.

 

What did you put it under contract for? What did you end up selling it for, Travis?

We had it under contract for $96,000 and sold it for $111,000.

$15,000? You gentlemen know what is coming.

Yes. We are waiting for it.

The victory bell has been rung for these two, $15,000 on this one.

From the first time I listened to the podcast, one of my main goals was to hear that dang bell ring.

Which was better? I still want to help the audience understand. Was the $15,000 check better or was the victory bell better?

The bell is the icing on the cake right there.

The $15,000 still tastes the best.

On our first deal, we did a straight-up assignment of contract but how we do all of our deals, we do a thing. It is called a blind double close. There are two HUD statements. Your seller does not see what you are making. The buyers don’t care. They are investors as well. If the numbers work for them, it works for them. With assigning and new and double closes, it is less obstacles you have to face talking to the seller with this $15,000.

You go out there. You made this one. That means on the other 3 deals, because you had 4 closed, you have got another $20,000. Between the other three pending, you have another $35,000 and $36,000 here in the near future. How far out are those deals?

 

The power of the universe is intense, and you have to figure out how to push through obstacles.

 

One is really close. We can probably move that one forward about a week but that one will be some $20,000, and then another one will be around $10,000, and the other one will be around $5,000.

Are you doing this full-time, or are these part-time in between full-time jobs that you have elsewhere?

We are both full-time, 100% in real estate.

Give it a breakdown before we end this because I always like to hear something. I have asked, and a lot of our readers are wondering, to do a deal flow in a market that has maybe 600,000 in population. You have 4 closed with 3 pending, so 7 deals. What does that look like on the marketing side? How much money are you spending in marketing to bring in enough opportunity to do this amount of deals?

$1,000 a month, maybe less, in marketing.

Our marketing process has been cheap compared to most.

Where do you find where you are putting most of your dollars?

In bandit signs.

Are you placing them yourself or do you have someone else go out there and do it?

Travis and I go out Friday nights and put them out.

Marketing expenses are super low, and here you are doing, let’s call it, $6,000 out in marketing to bring in what will be about $70,000 in the future. It sounds like a good little business you got going on there. I am proud of you, guys. That is awesome stuff. To end this, we always end it the same way, and you are probably familiar with it. We always ask two questions. The first one is hindsight. If you were to look back, it is usually a better vision looking backward at your starting point. We have a lot of readers on here that are just getting involved in wholesaling. What would you have done differently if you were starting over now?

 

WI 274 | Imperfect Action

Imperfect Action: Real estate is all about taking action. It’s a simple business, but it takes a ton of grit, especially early on, because you’ll have so many obstacles to get your first deal.

 

For me, I met Travis sooner. Everybody says it is all about taking action and analysis paralysis is out. I was so consumed with information, watching videos, and reading books, which was great. At some point, you must put that side of you away and take action. I remember the early days of being scared to cold call somebody or to do the early steps in the course that you guys provide. Looking back, I was like, “Why was I always acting like that?”

It is all about taking action. It is a simple business but it takes a ton of grit, especially early on, because you will have so many obstacles to getting your first deal. I feel like that is the universe talking to you in a way because you will have so many ups and downs and deals fall through or this and that. The first day we got our contract, it ended up falling through. I know there are so many videos out there that say how easy it is but you got to have a ton of grit, take action, and just keep pushing forward. There are going to be so many tough days. If we can get through it, anybody that is reading this can get through it.

Travis, anything you want to add to that?

We read it on a bumper sticker somewhere. It was like, “Progress, not perfection. Fail forward.” Something crazy like that.

Let’s ask for a book from each of you. What is one book from each of you that you would say is game-changing? What has helped you with your mindset or what has helped you progress to become someone better that you would recommend to our readers?

I read this book before I made my life-changing career change. It put my mind in the right place. She actually has two books but the first one I read was, You Are a Badass by Jen Sincero. They are mindset related. It made me realize the power of the universe and how to push through obstacles. I have read so many other books too but Travis has a good one as well.

Mine was Rich Dad Poor Dad. That was a game-changer. I was pretty well entrenched in the whole idea involved around that. It cemented it. The one I read when I was younger, it was called The Millionaire Real Estate Investor. It is by Gary Keller. That was one that sold me on at the beginning. I thought it was like, “The math checks out,” and then Rich Dad Poor Dad built on top of that.

I have read a couple of those books. Rich Dad Poor Dad is one of the game changers for so many people. The Millionaire Real Estate Investor by Gary Keller is such a great book. Tom had the opportunity to hang out with Robert Kiyosaki, and it is game-changing to hear those different views and how to hear different mindsets. He is one of the godfathers of real estate and many people mention his name. It is interesting to see how other people’s minds work around real estate. It opens up doors and windows for us that get to listen to it.

Gentlemen, this has been an amazing episode where you have broken down how you are doing deals and how business is going. I want to thank you guys for taking the time to be on the show but also, what an honor it is to ring that victory bell. This is awesome stuff. Seven deals in months, and you guys are going to have an amazing 2019. Thank you so much for sharing your story with us.

Thank you, Cody. It is a pleasure to always read your content, to be a part of the tribe, and to see how go-giving you guys are. If anybody has questions about it, join the tribe or follow these guys on Instagram. I am getting gold nuggets every day.

For those of you that have been reading Rhino Nation, you have the two rock stars that are out there taking imperfect action, failing their way forward, and making deals happen. That doesn’t just fall in your lap. You got to have grit like Mason was talking about. You got to read those bumper stickers like Travis was saying. Get out there. Fail your way forward. If you want help building your wholesaling business, go over to WholesalingInc.com, where you can book a call with our team. We would be glad to see if it is a fit and also help you along with your wholesaling business. Until next time, take care, and God bless.

 

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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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