Posted on: June 03, 2019
WI 278 | Succeed In Wholesaling

 

If you think you need to be an expert to succeed in wholesaling, think again! One of the many amazing things about wholesaling is you don’t need to know everything about it to succeed. If anything, you just have to be courageous enough to get into it and make massive imperfect actions each and every time. And the wholesaling success story of today’s guest is a testament to this.

 

John Harcar is a thriving rhino from Las Vegas, Nevada. Just like most people, John was no wholesaling expert when he first started. What he lacked in wholesaling knowledge and experience, however, he made up for in his willingness to learn from the experts and take massive imperfect actions.

 

As expected, his courage to take massive imperfect actions and go after what he wants (even at the risk of committing mistakes or failing) has paid off lucratively! Nowadays, John has been doing deals consistently and is constantly on the lookout for ways to improve his wholesaling business.

 

If you’re looking for that courage to finally get into wholesaling, today’s story might just provide the much-needed inspiration for you to finally take that leap!

 

RESOURCES:

How Taking Massive Imperfect Actions Helped A Rhino Succeed In Wholesaling With John Harcar

Episode Transcription

In this episode, we’re going to have a rock star Rhino share his story on what he is doing in his wholesale business. This guy has been wholesaling for some time now, so he’s going to bring some energy, some knowledge and gold nuggets. Get a piece of paper, get a pen out and get ready to jot down the action that he is taking so that you can go out there and repeat and do exactly what he’s doing, and get one step closer to your first deal or next deal.

For those that might be joining us for the first time, we want to welcome you to the show and to Rhino Nation. What we’re going to be talking about is wholesaling real estate, and that’s simply finding deeply discounted properties that you can then turn into huge profits in multiple ways. We have John Harcar with us from Las Vegas, Nevada. He’s going to break it down step-by-step how he’s doing some deals, what’s going on in his market and how he’s finding deals in this market. Get ready to jot stuff down and take massive imperfect action after you read this episode and get out there and get some deals. Mr. John Harcar, how are you?

I’m awesome. I’m blessed. I’m grateful for you having me on here. From the last time you and I saw each other back in Salt Lake, you blessed me. I’ve learned a lot from you. I took a lot to heart what we talked about. Business is good and I’m one happy camper.

We saw each other in Denver. We’ve been traveling all over together, which has been awesome. It’s been good to see you and your smiling face, which tells me things are going well, which is awesome. How did wholesaling even become something that you want to do? How did you even get into wholesaling in the first place?

I worked previously with ReboGateway, the data provider. As I saw Wholesaling Inc. and the tribe grow, at that point, I was feverishly trying to become a provider for the tribe. I reached out to Tom, and he invited me out to the event in Salt Lake in April 2017. He said, “Get out here. Come on and check it out.” I’ve been assimilated or associated with the concept of wholesaling through the people I talked to, but there I think I got the real impact of it.

For me, especially when I listened to Brent Daniels and his TTP for the first time he ever talked about it at an event, it made a lot of sense to me what he was doing. The family, the vibe, everything, that has turned me on. I knew what I was going to do. Immediately when I went back, me and my wife got our fold-out tables and set it up in front of the big screen. It was fun. That got me into it and to be independent and want to know what I want to do.

What’s cool, John, that you’re sharing here is you go out to an event. You get motivated and inspired and here you are now doing deals consistently in your market there in Vegas. That’s one of the gold nuggets I want the Rhino Nation to write down. Sometimes on our own, we can’t see the big picture. We can’t see what it can become, who we can become, and what our business can look like in the future. It takes that little extra motivation and desire to surround yourself with individuals that are doing it.

In such a case in 2017, you fly out to our Salt Lake event and you start being surrounded by people that are doing deals. It motivated and inspired you to go take action. When you got home, you and your wife started picking up the phone and cold calling people as Brent was talking on stage. There’s so much wisdom and power to what you said. It’s to surround yourself with people that are doing it.

You can learn as much as you can, but if you don’t take that step, you’re going nowhere.

The biggest thing I took from you guys, and once again, I’ve talked with wholesalers a lot up until I went to that event. I learned the business, but the biggest thing I got when I went was I met people there and I saw you guys, even prior to getting to that event, it was taking that step and that action. I had to beg my wife. I had to say, “I need $300-some so I can jump on a plane, and I need a hotel so I can learn how to do this because it’s going to change our life.”

I had to beg her to do it and she let me do it. When I got back, it wasn’t waiting around. It was going in and doing it. Also, the massive action part. If people are wanting to do this, learning’s great. Learn what you can, but take the step because you can learn as much as you can. If you don’t take a step, you’re going nowhere. The biggest thing I took when I started with the tribe is that massive imperfect action.

What does that essentially mean, John, to help the readers to even understand? Did you go through this and nailed it perfectly right out of the gates? Is that exactly what you’re doing? What does the real-life experience look like?

By no means did I go and nail it right away, even with a lot of experience in calling. This was a learning process. You’ve got to go out there and learn how to talk to people. You’re going to get beat up, gut-checked and discouraged. You’ve got to look at the bigger picture and rely on people that have been there. When a lot of people get started, and I’m not going to lie, I had it a little bit of myself, it’s like, “I could do this. I know how to sell. I’m good.”

He then talks to 25 people and he gets called the F word 17 times out of the 25. You are like, “Do I want to do this?” If you have the faith, stay consistent, and take the punches and roll with it, there’s a better way, but lean on people that have been there, and that’s what the tribe provides. That’s what I think is huge for anybody to have that support service and that resource.

You’ve been doing this now for years and it changed your life, but you had to go through that struggle. You had to go through those gut-check moments, but what does John’s business now look like? What are you consistently doing, maybe monthly? What does a year look like for you?

I was doing some stuff part-time and I did three deals prior to my moving out to Vegas. I moved out here and I started a call center. My partner has a construction company. He had an extra room and said, “Let’s turn the wheels.” I came out. I turned the wheels and we did 69 and 71 deals for the year in our first 12 months. It’s strictly cold-call. That’s all we do.

We did PPC online and spent a lot of money but didn’t get anything. I wasn’t a fan of mailing because I did do some mailing. Also, mail doesn’t work. I spent a bunch of money and got a whole bunch of nothing. Once again, I found out about the cold-calling. I knew there was no path and I said, “Let’s get out there and hammer people.” We took a little bit of a different scope. People ask me this question all the time. What lists do I use? I’m sure a lot of your people are out there saying, “Have a mailing list.”

WI 278 | Succeed In Wholesaling

Succeed In Wholesaling: Wholesaling is a learning process. Go out there and talk to people. You’re going to get beat up and discouraged, but that’s what the tribe is for. Lean on people that have been there.

 

We’ve done a little bit different approach and it’s funny because I came at it from selling specific niche data. We took a broad approach. We took certain parameters and maybe owned a 5-year, 10 years or more with 30% equity, RSS value. We hammered everybody, and I think that helped us for the fact that everybody is hitting the niche lists. We’re finding those by calling everybody, but we’re also finding the one that works on the niche list. When you call the niche list and you have 6 or 7 people, you need more leads.

The niche list, meaning your tax-delinquent and code violation. It’s something that everyone’s marketing heavily and you’re more worried about zoning in like, “There are a lot of rehabs going on in this ZIP code, so we’re going to take this ZIP code and we’re going to look for specific homes that have 30% equity or more.” They’ve owned it for ten years or more, and you dial in more on a neighborhood that’s hot versus a specific list.

That too and manipulating our avatar as to what we’re targeting as we went along and learned our buyers. We learned what they were buying. They buy this specific property that’s a 3 and 2 that’s between 1,500 and 2,500 square feet. I know my buyer, Igor, that’s the guy I’m going to because that’s his wheelhouse in that ZIP code.

A lot of factors went into some developments and that process helped us because, once again, we were finding other people, but we got a lot more dirt to dig through to find the gold versus the niche stuff. What I’ve switched to a little bit is I still have my callers doing some of the broad stuff, but I’m starting to take some of that niche stuff and do the textbooks. I assigned one of my cold-callers to the smaller lists to try to pull this out quicker.

I’ve heard this from multiple people. We’ve seen even a little bit on our side where, every now and again, you’re reaching different personalities. You’ve got people that are willing to pick up the phone. You’ve got people that are like, “I will never pick up that phone.” What you’re trying to do is hit any kind of personality from every angle. If they’re not going to pick up the phone, they’re going to get a text from me.

That’s what we do. I call through the list and after the list is called, we text to the list because those people that didn’t answer, I respond to that. Ideally, the goal is to get them on the phone because people can put that facade up on a text, but when you get them on the phone, then you’ve already started digging into the motivation and why they need to sell or want to sell or thinking about selling. It’s going to help you understand the tone, inflection, pitch, and all that stuff that comes with being on the phone and better at understanding your customers.

I’d be interested to hear a little bit more. It sounds like you’ve done a couple of deals from the text blast, and this would be something new to our audience. They’ve heard the TTP or cold-calling. They’ve heard direct mail. They’ve heard the PPC. They’ve seen bandit signs. Walk us through a recent deal where you’ve done texting and that it’s led to closing on a deal.

That’s why I use Lead Sherpa. I used to use ClickSend which that was a big blast email. I now use Lead Sherpa. The reason why I use that is because it’s a “legal” way to text because there’s human interaction. If you text, “This is John. I apologize if it’s out of the blue, but I’m wondering if you want an offer on 1234 Main Street.”

In wholesaling, everybody’s hitting the niche lists. So what you can do to find those buyers is to call everybody. Go broad.

It’s simple and straight to the point, “This is a little out of the blue, but I wonder if you want an offer on 123 Main Street.”

The system can audit people if they say, “No. F-off,” or all that other stuff, but most of the ones you get, “What’s your offer?” “I’d love to talk about your property. Can you tell me the condition?” It has a lot of preset texts where you can auto-respond real quick or you can type in your own stuff. You’ll say, “Other than price, what’s a fact that’s prompting you to move or have you thought about selling?”

We try to get as much as that and then say, “Depending upon how we feel the lead is, if there is some motivation or if we get on the phone and talk a little bit deeper about a solution that might help you or whatever we could.” Once we do that, then do it how we normally do. We’ll try to lock it up over the phone. We close 90% of our stuff over the phone. If we can’t do that and they’re closed, we’ll meet someone in the ballpark and we’ll set up an appointment and I’ll send my acquisition.

Send out the text blast, and find out the motivation, but ultimately you’re getting to the point where you can get them on the phone and talk. That’s the whole goal behind the text. You say you close about 90% of your deals by having a phone conversation and doing it over the phone. Does that mean that if you structure it that way, do you still need to go out to the homeowner to get the contract signed? Are you sending a mobile notary? What does that look like?”

We would do DocuSign a lot. If we don’t DocuSign it, we will go out there and get a hand signature, but at that point, it’s going out there to say, “We’re going to come out and sign it at the same time. We need to take something.” It’s not wanting to negotiate. We won’t send my acquisitions guy out. Maybe my wife will go out and take pictures of the area, or I might go out and take pictures if I’m in the area. We don’t do much with negotiating. The first text deal I did was an appointment I went on. From when you and I talked, I said, “If the leaders are going to lead, the leaders are going to go out and lead.”

Me and my wife went on it. This lady’s husband died on February 6th. We went out there in March. I walked in and the guy said, “Do you want to see the house?” I said, “No. I’d like to sit down and talk about your situation. What’s going on? I want to get to know you guys a little bit better.” The funny part was that they opened up to the point where they were like, “Do you want to look at the house?” We built that rapport and it all generated from a text because the lady even told us, she’s like, “I get bugged with these phone calls all the time that I stopped answering it. I get a bunch of mail and I throw the stuff away.” I said, “Why did you answer the text?” She said, “Because I didn’t have to talk to anybody.”

She is a kind of lady, but she hates the phone. It sounds like you were able to break that by going out there, building a good relationship of trust and talking about them. Genuinely be involved about how to help them and the by-product was you, at some point, got to look at the house or you ended up looking at the house.

We looked at the house. We locked it up. We sold it right away. We closed it in about fourteen days for $33,000.

WI 278 | Succeed In Wholesaling

Succeed In Wholesaling: Send out a text blast out of the blue to find your buyer and their motivation. Then do what you normally do, lock up the deal over the phone.

 

How do you typically do it? Do you buy it, double close, turn around and sell it on the MLS or are you doing a normal assignment where you get a cash buyer? What does that look like?

Normal assignment. I think we’ve double closed once and the only reason I did that is because it was a $40,000 assignment. I didn’t know the buyer, so I wanted to double close on that one. I think that’s important. You might disagree. I don’t know if the volume is necessary. What you need more is the quality and it’s funny, on this specific deal, I know this buyer well enough. He knows me well enough. We built a relationship to where the seller wanted me to take out the inspection cost.

I walked around and looked at it. We made the deal that we were going to go back and do a full inspection on it because we had some concerns, but the buyer said, “That’s okay. If he wants to take it out, just take it out. I’ll still buy it.” Having the quality of buyers helped us move this thing that much quicker.

I don’t want to hold up on this amazing victory bell that is going to ring for you, but you were able to make $33,000, right? You go out there. You do a deal. It sounds like you did around 70 deals in a twelve-month span. This is amazing stuff. For the next twelve months, do you see the trend still growing and getting better? Are you guys like, “No, we know what works and we’re going to stay right around 70 deals?”

We’ve learned a lot. People would ask me, “What are your numbers?” I’m like, “I don’t know. I know how many deals we had. I don’t know what my bank account says.” I took that to heart. I finally started learning my KPIs and learning that for every 35 deals or leads, we get a deal and I have this many amounts of dials. I broke it down and learned those KPIs. I think that now with some of the processes that we have, it’s going to help us do more than 70. We’re at 9, and 10 and 11 are closing. If you start a year again, if we can get ten a month, I’ll be a happy camper.

Killer points to jot down, Rhino Nation. Here he is building that business and there’s a point where it turns into a business. It turns from more like that job. John, you nailed it on the head, but there are so many people that fall into that trap like, “I know how much money’s in my bank,” but knowing those numbers are so crucial.

He’s going to see a lot of growth take place this year because now he knows how to reverse engineer what it takes and how much effort is going to be necessary. How many cold-callers he’s going to need and how many conversations they’re going to have every single day so they can get X amount of leads which leads to X amount of deals. That’s the best part of knowing your numbers. It’s no longer for, “I think it’s this or let’s bust our butts off, and let’s do this.” Now, you know the specific number. Thirty-five leads equal one deal. You need to reverse engineer what we need to do to get 35 leads, and it’s like, “Repeat.”

I heard you guys a while ago when we talked about learning your numbers. That is something. With this business and when people are out there looking and everybody posts these checks, it’s great to see the checks, but how many people talk about the rough spots? It’s a growing business. There are going to be ups and downs. Utilize your resources. This is one of the greatest things ever in the world because, for me, my why is my daughter. I didn’t have a great relationship with my other kids, so now I get to spend a lot of time with her.

Buyer volume isn’t necessary. What you need more is quality.

All these gut checks, when I think about it and I look, I say, “That’s why I’m doing this.” For the people that are new, save the gut checks, but know your why. Know your numbers, and build your systems and processes because it’s going to suck doing it at the beginning. It was a pain in the ass sometimes, but trust me, when you get them down and you can look back and say, “I have no deals. Why? It’s because I have no leads? Why? It’s because I’ve only done this many calls.” It’s so much easier.

John, my friend, I want to thank you for sharing your story and everything that’s happening in your business. This is going to help motivate and inspire so many individuals, but we always end with two questions that we always like to have your answer. First and foremost, looking back in hindsight, what would you have done differently? For those that are just reading right now that may have never wholesaled a deal or just beginning, what would you tell them that you would do differently if you were to start over at ground zero?

If I were to start over at ground zero right now, I would have not hesitated a little bit, but I did take a lot of massive action and didn’t jump in full force. I would have jumped in full force as something for me that I think was my springboard. If I’m going to go after, I’m going to go after it. I’m going to burn the chips.

Are you saying that you’re working like a side job too long?

I’ve got to the point where I was rebuilt for comfortability, and I was too afraid to get uncomfortable. When I got here and I finally got into the groove of this business, I wish I would have done this a year ago. My wish if I had to go in and do better is I would try to jump in earlier and also I want to put in and know my numbers better.

The second question, what’s a good book that you’d recommend to the Rhino Nation that has been game-changing for you?

No joke, I read The Go-Giver once a month.

It is one of our favorites. What is it that you like about The Go-Giver?

WI 278 | Succeed In Wholesaling

Succeed In Wholesaling: Wholesaling is a growing business. There’ll be ups and downs, so you just have to utilize your resources. Take the gut checks but know your why because it will get better.

 

I like the story about The Go-Giver. I liked it when they talked about Iafrate and his restaurant. It started as a hot dog, but it wasn’t about the hot dog stand. It was about the people at the hotdog stand. If you build the people around you, you can have the best and the most explosive in business, but it’s about who your core is, your people, and that’s what I took from it.

I think we go so far all the time thinking about the go-getter, “I’m a go-getter,” and this book was the paradigm shift. It was like, “No. Be a go-giver and realize that when you’re out there giving, regardless of what comes back, that’s what triggers a very successful individual. Ultimately, the more people you serve also equates to how much money you can make. If you’re not willing to go out there and genuinely serve, then you’ll never come back.

It’s a killer book. That’s Bob Burg. He was on our show interviewed by Brent Daniels. If you ever encounter that episode, definitely read it. If you haven’t read The Go-Giver, I second what John Harcar said and get The Go-Giver. It’s an amazing book with an incredible story that will change your life. John, my friend, I want to thank you so much for sharing your story with us and with the Rhino Nation. I know you’re busy. I know you’ve got a lot of things going on for your business. Thank you for carving some time out to be able to share this message.

I appreciate it.

Rhino Nation, this has been another amazing episode where John has just shared some gold nuggets on what his business has looked like over the few years. He has shared so much value from the beginning stages. Surround yourself with people that are out there doing it, and how that motivated and triggered him to get out there and do it. He shared some hindsight, knowing what you would have done differently. I love that he says, “I would have just jumped all-in.vI would have just gone after it and done it, and had more faith versus being scared.”

I love that message. It’s amazing stuff. If you guys are interested and if this sounds interesting to you and you want to get into wholesaling and build a successful wholesaling business, head on over to www.WholesalingInc.com and book a call to our team. We can hop on the phone and see if that is a good fit. Until next time, get out there. Take massive imperfect action. We’ll see in the next episode. Take care, guys.

 

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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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