Are you one of the many who thinks they have to be an expert in wholesaling and have to do it full-time to succeed? If truth be told, even if you only know the basics of wholesaling and you’re only doing it part-time, you can still make a killing. Not convinced? The story of today’s guest is solid proof!
Kevin Roberts is a rockstar wholesaler from Houston, Texas. Just like most wholesaling newbies, he had to find his way around when he first started. However, he was willing to make massive imperfect actions and was always putting in consistent effort.
Past forward a year later, he has already closed a total of 4 deals in 2019 alone. What’s even more amazing is he has earned a whopping $86,000 from all the deals he has done so far!
If you’re a wholesaling newbie who’s about to give up, do yourself a favor and listen to today’s episode. It just might inspire you and make you believe that just like Kevin, you can succeed in the wholesaling world if you take massive imperfect actions and stay consistent.
- Kevin got a call from a motivated seller he has sent direct mail to over a year ago.
- After building rapport and establishing a good relationship with the seller, he was able to purchase the contract for $210,000.
- He then marketed the contract to his buyers list for $225,000.
- Two weeks later, he was able to sell the contract and walked away with a fat $10,000 assignment fee. Truly a handsome reward for the consistent effort he put in!
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., Super excited to be with you. My name is Cody Hofhine. I’ll be hosting today’s episode, and we have got an incredible rockstar rhino that’s going to be sharing his story with you today. Now, before we get going, for those of you that are just brand new to the podcast, first and foremost, I want to welcome you to Rhino Nation, to the Wholesaling Inc. podcast, where we talk about wholesaling real estate. Now, what is wholesaling? Wholesaling is just simply the art of finding a deeply discounted property, that then you can find many ways. There’s more than one way, but you can pick multiple ways to then, with that deeply discounted property that you find, how to turn it into huge profits, and we’re going to share one of those methods with you today, because today we have Kevin Roberts from Houston, Texas.
He’s married, has three kids. He joined the TRIBE in January, but he has a unique story. He tried to do this a little bit, a little over a year ago, and he’s going to be breaking down the story on what that little action actually did for him this year, a year later. So, this is going to be some fun stuff. Get ready, get a piece of paper, get a pen, and I really want you guys to really hone in on taking away an action item today.
This podcast is, yes, it’s meant to inspire and motivate, but if it doesn’t get you to move to action, then it will be in vain. So, let’s get you out there taking massive imperfect action, and Kevin is going to share with you action items that he took, that you can then replicate so that you can go out there and get your first deal. Let’s bring on Mr. Kevin Roberts. Kevin, how in the heck are you brother?
Kevin Roberts: I’m great. Thanks for having me.
Cody Hofhine: Good, good. Let’s get going into this. Tell us a little bit about yourself, and ultimately what got you into wholesaling. What were you doing before you got into wholesaling?
Kevin Roberts: So you know, I still have a nine to five job, but really had some transformation of my thought process probably, oh gosh, a little over a year ago. And, everybody has read “Rich Dad, Poor Dad,” and probably read it 15 years ago. And, I’ve got a kid who’s graduating, my youngest actually graduating high school this year. And, I really was just thinking about my life and where I was going, and the type of effort I was putting into my nine to five. And, I really wanted to change that lifestyle.
I had heard the terminology life in there, and living in an abundant life, but I knew right now, that I was basically just trading time for money. And, real estate continued to kind of come to the forefront. And, I just really made a commitment that this is where I wanted to go, because I knew that, that would put me on, I guess you’d say the right side of the quadrant. And, no matter what that, if I could just determine my best path, which it’s been a rough one to kind of determine where that is. It’s 12 months in, that it would give me this opportunity to have more lifestyle freedom, and maybe financial freedom follows along.
Cody Hofhine: That is awesome. So, lets kind of go right into this. Let’s break this down. And, what we like to do for those that are new to the podcast, is breakdown step-by-step what we do each and every day in our lives, or how we find deals. And Kevin’s going to do that for you today. He’s going to break down step-by-step how he just did a deal recently, but this was a deal done just a couple months ago, back in March. But, it has such a unique story to it, and I’m super excited for him to share it with you today. So, get ready to jot down some gold nuggets, but more importantly, take this same action, and get out there and take some action. So Kevin, let’s break it down. Talk to us about this first deal that you did, and when the phone call came in. Let’s go right to the beginning, how it all led to what you’re going to get into. So, phone call comes in, what took place?
Kevin Roberts: So, I had just set up all of my numbers to track the different lists that I was mailing, and-
Cody Hofhine: Through CallRail right? Is it through CallRail that you set up your numbers?
Kevin Roberts: Yeah through, well, I was originally using Bumber, but I’ve transferred over to CallRail now.
Cody Hofhine: Okay. And so, you’re setting up CallRail so you can track your marketing. Meaning he sends out a list, or you send out direct mail to tax delinquent, or notice a default, and he’ll attach a phone number to each one of those different marketing pieces. So, we know who’s calling in. Is that correct?
Kevin Roberts: That’s correct.
Cody Hofhine: Perfect. Perfect.
Kevin Roberts: So, I get it set up, and that was my first week to send out mailings. And, I get a phone call. Actually, it comes from a number that didn’t coexist with the numbers that I just sent out for a code violation list, and tax delinquent list. And, it was recognized as being a number that I had sent out in March of 2018.
Cody Hofhine: This is so good.
Kevin Roberts: [crosstalk 00:05:53] I had tried direct mail, I had been brainwashed, direct mail doesn’t work. And so, I send out this huge mailing for me at that point in time-
Cody Hofhine: How big was it? How big was the mail piece? How many mail pieces did you send out in that March of 2018, a year ago?
Kevin Roberts: I just sent one blast of 10,000 pieces.
Cody Hofhine: Wow. Yeah, you did get after it. That’s, That’s a huge send-out. And you did it all at one time, right?
Kevin Roberts: All at one time. [inaudible 00:06:21] I used some green postcard, I don’t even know what it said, really. And so, it goes out and it was just, crickets. You know, I got hardly any phone calls, and I had just spent all this money, and so I had this poor, just really bad taste in my mouth about direct mail. It doesn’t work. Everybody says it doesn’t work, and I just kind of shut it down. And so, yeah. So, in February of 2019 right at 11 months later, I get this call from a lady [inaudible 00:00:06:44]. She says, “Kevin, you sent me a postcard, it’s been in my top drawer in my kitchen. I kept yours and two others, I want you to come out and see my house.”
Cody Hofhine: Wow. So, a year later you get this phone call, and this happens to be a month into joining the TRIBE. You’re building up the foundation, going through it. And here a phone call comes in that you’re like, “Wait a second, what? This is awesome. I haven’t even sent out mail yet,” and you’re getting this call, but you sent it out a year prior, keep going.
Kevin Roberts: So, I go up and see her, and I know this area, which, you know, we got hit hard by the floods during Harvey, and this area that had flooded. So, she told me, “My home had flooded.” She had moved out of it. She had not been living there. She had moved to St. Louis, and had been waiting for her daughter to graduate college here in Houston. And, she was just ready to sell. But, my fear was that, you know, I was going to run across some pretty significant competitions. Guys or gals that knew that area really well. And so, I was super nervous about, you know, what price now was going to come into, but I kind of knew. And, I was doing the methods, I was still going through the process of learning here, how to price something. I was pretty confident in what the price was going to be. So, at that point in time I knew I wanted to offer her $207,000 and-
Cody Hofhine: What does something like this look like? When you, when you’re talking that number, just to kind of give us a little perspective. If this home was in perfect condition, what would something like this go for?
Kevin Roberts: This home is probably going to be, almost 400,000 after repair value, home.
Cody Hofhine: Okay. 400,000, and I’m assuming the floods do quite a bit of damage. Not just your typical, “Hey, go in there and fix the carpet and the paint.” You’re probably doing, a full, almost gut job when something’s flooded. Is that correct?
Kevin Roberts: It was. And unfortunately for her, she had remodeled right before the flood.
Cody Hofhine: Oh man.
Kevin Roberts: Yeah.
Cody Hofhine: So, you were thinking it could sell for 400 K when it’s fixed up, and you’re thinking, “Okay, my number needs to be around 207,000.” Okay, keep going.
Kevin Roberts: Cause I knew that the rehab was going to be pretty expensive, because, all the walls were ripped out. I mean all the appliances needed replaced, and she had, you know, ruined all of the tub that she had put it in. So, I knew it was going to be pretty expensive. So, I walked it with her, and she comes back at 220, and so, I just kind of walk away a little bit, disappointed. And, I just held steadfast and said, “Look, I really just have to be at 207,000.” And she goes, “Okay, well we’re going to meet with everyone else, and we’ll let you know.” So, I thought it was pretty much dead. She calls me probably two days later. And she goes, “Okay, 210,” and I said, “Okay, how about, can you not do 207,000 and is there any way we can do that?” And she goes, “210 and it’s yours.” So I go, “Okay, I’ll take the 210.” So I-
Cody Hofhine: Like, “All right, this works.”
Kevin Roberts: Yeah, that works. You know, I was like, “I’m so close.” I was like, “Surely I can make up that $3,000 somewhere, right?”
Cody Hofhine: Well here, Kevin, here’s something to point out that I love already, is I want to ask, maybe I should have you tell it. So, are you at this moment, are you perfect at your numbers? Are you perfect at wholesaling? Are you perfect as an investor? Do you know everything, and you’re just the master of this all at this time?
Kevin Roberts: Oh, no way. Yeah, no, just what I know now compared to what I knew then, according to three months ago, four months ago. I mean, it’s a significant difference.
Cody Hofhine: This is crucial. So, everyone listening, why is it that Kevin was able to get out and go talk about that he did this deal so quickly? Because, he went out there with imperfect action. He wasn’t the master, he wasn’t perfect at his knowledge. He wasn’t perfect at pricing homes. He wasn’t perfect at anything that had to do with real estate. What he was is, he was good at just taking massive imperfect action. Getting out there, and letting the story unravel. And then, when something comes up that you don’t know at that moment, learn about it. But, so many times we go into wholesaling thinking we have to know everything. Like, “I’ve got to be prepped. Cause what if this home’s in probate and it hasn’t gone through probate, and I don’t even know what probate is. And so, I need to now look at probate.”
But it’s like, we prepare for all these what ifs, and 99% of the time, these what ifs never even happen. And so, we get into this almost analysis paralysis. And you did, you didn’t, you just went out there and said, “Yeah, might make some mistakes. Yeah, I might not do it right, but I’m going to go out there,” and you did it. So, 210, you’re able to put this under contract. What was your learning behind it? Why did she pick you versus other individuals? Was it simply you are the higher price or did she have something that she really liked about you to do business with you?
Kevin Roberts: What I, what I learned later on and she just, we had built some really good rapport, and spent a lot of time with her. Even she, she liked to text a lot. And so, we just, we’d go back and forth talking about the house, talking about our kids’ graduation, talking about them moving back to St. Louis. And so, we didn’t spend a ton of time once we kind of determined, a price, we just, we’ve spent more time just kind of learning about the circumstances, and trying to meet her needs, and the timing of when she wanted to close. Which was really important for her. So, I think that had a lot to do with it-
Cody Hofhine: So awesome. So, and I, I have to back that up. That’s so true. Cause it sounded like she had other offers. She had other opportunities. But what’s, I don’t think it’s coincidence that she came back to you. I don’t think it’s always attached to price. I think the fact that you took time to talk to her, and treat her like an individual, has all to do with it. So, keep going. What does that look like now that it’s under contract?
Kevin Roberts: So, it’s under contract at 210. I decide I’m going to market it for 225.
Cody Hofhine: Mm-hmm (affirmative) so, you market the contract to cash buyer’s list?
Kevin Roberts: To cash buyer’s list-
Cody Hofhine: Okay.
Kevin Roberts: Which wasn’t a huge at this point, but I had spent some pretty good time trying to build the list up. So, I send out and decide I’m going to go through. I just learned about the inspection method, and so I said, “You know what? I’m going to try this inspection route.” And, I set up an inspection for three or four days later, and I asked her just, to give me, give me two hours with the home. I sent out the email blast, and not a huge response to it. I mean, I had four or five people show up to the event.
Cody Hofhine: Okay.
Kevin Roberts: Several contractors, people would send contractors out, and kind of crickets. I didn’t get a whole lot of feedback at that point in time. I’ve started to hear back from a few people saying, “Oh you’re, you’re overpriced a little bit.” So, I’ve got all of these doubts in my head. I’m thinking, “Oh gosh, I’m going to have to go back, and ask for reduction?” Or, “What if she’s just going to go with somebody else again?” And then, I had, one person come back to me and said, “You know what? We, we think we can do it for 225.” And, we locked it up, and filed that contract on, let’s say, two weeks later.
Cody Hofhine: Okay. So you, you market the contract cash buyers, and you get people to come to the inspection. A cash buyer is like, “Yeah, I love this.” And, you were able to, what is called, for those listening, is an assignment, where you assign the contract to someone to go close on the property. And then, you make what’s called an assignment fee. So, on this one, you were able to put that assignment under contract at 225. So, if I’m doing my math right, you made 15,000 on this deal?
Kevin Roberts: Yeah, 15,000. And, here’s the other learning curve. The individual that was buying it was required, and I’m not sure why, [inaudible 00:13:55] somewhat, of an institutional buyer. They want a double close. So, that was my first double close experience.
Cody Hofhine: Okay.
Kevin Roberts: At that point in time, I thought I was going to assign it, but it ended up being a double close, which was a little bit more costly.
Cody Hofhine: Sure. What was the end thing, when it comes to an actual value, what were you able to net? Take home?
Kevin Roberts: Just over $10,000.
Cody Hofhine: Just over 10,000. Now Kevin, you know what’s coming, right?
Kevin Roberts: I do. I’m waiting for that.
Cody Hofhine: We’ve got the victory bell, my man rang in the background. For Kevin Roberts, for a huge, huge win. Now, here’s something I want to tell them about, and you could tell them about actually, is what’s really cool, is he’s telling you about his first deal. But now, year to date, how many deals have you actually closed on for 2019, besides this one deal?
Kevin Roberts: So, I’ve closed five deals as of yesterday.
Cody Hofhine: Five deals as of yesterday. You’ve had this one obviously for a little over 10,000. Then your second deal, you said when we were talking a little bit before this, was that one for 15,000?
Kevin Roberts: 15,000.
Cody Hofhine: Awesome. And then, the third deal?
Kevin Roberts: So, Thursday it was 5,000.
Cody Hofhine: Okay, I’m adding these up. Fourth deal?
Kevin Roberts: 10,000.
Cody Hofhine: So we’re at 40, right? Am I correct?
Kevin Roberts: Right.
Cody Hofhine: 40 and then the fifth deal.
Kevin Roberts: Now, this one was a good one. 46,000.
Cody Hofhine: 46,000 is what your fifth deal came in at?
Kevin Roberts: Right.
Cody Hofhine: So, total? Where are we at? So are we at 86,000? Did I just do my math right?
Kevin Roberts: That’s right. 86,000-
Cody Hofhine: On five deals… This is the power of consistent effort. For every one of you listening. So many times, just like Kevin, and he will attest to this, it’s not just easy. He had to get uncomfortable. He spent a lot of money back in 2018 on one blast, and it didn’t come back very fruitful, and it gave him a bad taste. And then, he’s like, “Okay, I know I still need to get into wholesaling,” and he gets back after it. In 2019, a year later, this deal comes back. But, since then has done four from his consistent effort this year. Now, the beautiful thing is, he’s not a professional at all this. He just went out and took massive imperfect action. Was it easy? No. In fact Kevin, was this easy? Is this something that was just a smile on your face through every moment, or get quick, get rich quick. How was it, so they can understand the picture of this?
Kevin Roberts: No, not easy at all. I mean, the learning curve has been pretty steep. And, you’ve got a lot of nights when you’re sending out your mailing and, is this the right mailing, am I wasting money here? I mean, its constant doubts about the whole process, but, the domino effect that I’m starting to see, just with the lead generation, and I’ve got multiple people that we’re just continuing to have conversations with. I just think it could potentially be huge towards the end of the year. But, yeah. Easy? No, it has not been easy.
Cody Hofhine: So, here’s the beautiful thing though. It’s this consistent effort. You got uncomfortable, you stayed uncomfortable, and it paid off. Now, going forward, what’s nice is it’s no longer this faith and hope process. You now know it with a surety, you now, it’s now a fact that this works. And so, making your motions going forward, your action that you take now going forward, it has so much more confidence. And, you don’t sit there and question, or doubt, or worry, or, “Oh man, is this going to work? Is this going to come back?” Now it’s like, “Okay, this has been proven five times, now I’m just going to throw some gas on this.” Do you see yourself always doing this part-time, or do you see yourself at some point transitioning into this full time?
Kevin Roberts: I think it will always be part-time for me, or at least, for the next four or five years. I do enjoy my other business and-
Cody Hofhine: Awesome.
Kevin Roberts: But I think, really and truly my next goal once I get to some point, maybe at the end of the year, will be really learning how to scale this.
Cody Hofhine: That is fantastic.
Kevin Roberts: Yeah, I think I can reduce the number of hours-
Cody Hofhine: That is fantastic.
Kevin Roberts: I mean, right now I’ll do meetings with sellers in the morning before work, or at lunch, or in the evenings. And, I don’t know if that’s sustainable, and continuing to have that life of abundance, and time with family. But, I think the ability to scale it, which I’ve seen you and others do, to me is pretty exciting. But, I don’t want to get ahead of myself. I do have, I’ve been known to get ahead of myself.
Cody Hofhine: That’s awesome. The shiny objects start, once you get a little bit, or you taste a little success, it’s like, “Hey, let’s do this now,” and I love that you’re taking an approach that is very thoughtful, and you’re taking some time, and making some purpose behind it. So that’s, that’s incredible. Kevin, we always end our podcast, two questions, and before we get to those, this has been an inspiring story. I’ve jotted down three things that I’m sitting here looking at, great action items that I can go, and relay to my team. I love doing this podcast, because there’s so many times that I can go back to a team meeting and say, “Hey guys, listen to this, what Kevin did in Houston.” And then, they get these huge takeaways away. So, amazing, amazing takeaways from this podcast. But, we always end with two questions. First and foremost is, knowing what you know now, usually looking back, it’s usually 2020 vision. What would you have done differently? Or maybe, what would you have done the same, that would be worthy of sharing with our audience that might be at the beginning stages?
Kevin Roberts: Well, I think there’s really two things there. Consistency was obviously a problem sometimes, just mailed out once and stop. But, I think the reason that I didn’t know consistency would work, is because I did not have the right mentorship. I didn’t have a benchmark of what success looked like. And, I didn’t have people around me that would share that, “Hey look, guess what? You do have to do this consistently. You do have to mail out every eight weeks. You do have to mail them three or four times, don’t give up.” And, I’ve been able to, TRIBE’s given me that, has given me, the do’s and don’ts. I see successful individuals, I see people who are going through the same struggle that, as I am. And so, now I do, I feel like I have a benchmark of where I should be, and I have others that I can reach out to if I’ve got questions or doubts about what I’m going to do next.
Cody Hofhine: Fantastic. I love that advice. Second question would be, a book that you’ve read that’s been game changing, whether it’s been on mindset or spirituality, you name it. It can be anything. I’m not tying it to any one category, but a book that’s been game changing, that you’d want to share with the, with the audience today.
Kevin Roberts: Well, for me, that’s easy. There’s been multiple books, but, one that really stands out was Gary Keller’s, “The One Thing.”
Cody Hofhine: Oh, good book. Love that book. What did you love about it?
Kevin Roberts: Yeah, well, I mean for me, you mentioned it’s shiny object. It’s, we hear, “Oh, it’s pay-per-click. It’s direct mail. It’s cold calling. It’s NCO.” To me, I knew I needed to stop. I needed to stay focused, and I needed to give massive action, and keep it very narrow in focus. And, to me, it’s been direct mail. So, I’m going to be the best direct mail marketer possible. And, that’s been my focus, and I’m going to learn how to source deal. And, the one thing, just to keep me super narrow in my focus, and approach. And, I have to go back of course, obviously I’ve got great notes from the book. I continued to read those in the morning just to remind myself, because I am fearful that I may get veered off to the left and right, and so I’m just trying to continue to say right down the middle.
Cody Hofhine: So amazing. But, the beautiful thing with this approach, Kevin, is once you have a system and a lot of people, here’s what happens, is they’re like, “Oh, well then, when do I ever expand?” Yes, Kevin at some point is going to expand past, but what I love that he said is he’s going to become the master first. One channel, and that’s direct. No, he’s going to be the best at it. And then, Kevin’s the type of person that’s going to be smart enough to now put a system, and a process, and maybe a team member, in charge of it, so that he can bring on the second marketing channel. But, there is a strategy on how to do this, and be successful, because there’s so many individuals that will go into so many things at once. And Gary Keller’s book just breaks it down like, “No.”
The one thing, and if you bring on team members, each team member should be focused, and in charge of just one thing, not 10 different things, or two different things, but just one thing. And, those businesses grow and succeed. Great book, awesome, awesome book. But Kevin, I want to thank you again, so much for being on this podcast. There’s so many people on this podcast listening right now, that are at the beginning stages that this story resonates with. They’re probably questioning, “Can I do this on the side, or does wholesaling require doing this full time?” So, I think there’s so many things that you’ve shared today that allows them to, to realize like, “Oh my goodness, I can do this.” So, thank you so much for being on our podcast today.
Kevin Roberts: Oh, you’re sure welcome man. And, I appreciate what you do. And, my morning walks consist of listening to someone else’s success stories or failures. So, I hope I was able to give back something today.
Cody Hofhine: I know you have. Thank you. Thank you so much. And, for those Rhino Nation listening today, what an amazing podcast. This is something that should give you so much motivation, inspiration to let you know you can do it. You can even do it part-time. You don’t even have to do it full time. And, one day you might realize that you’ll have the option to go full time. But, what an amazing story of someone that just went out there, tried it, and got a little bit of failure that knocked them out at first, and is like, “Ah, this doesn’t work.” Or, “Oh, direct mail is dead.” But then, knew that things still weren’t changing to the way he wanted his full life to be. Got back into it a year later, and now he’s finding some consistent deals each and every month.
And, that can be your story, and if you’d like help building your wholesaling business, head over to www.wholesalinginc.com, where you can book a call with our team, and begin to have that chat to see if we’re a good fit. See if it’s something that makes sense, and if so, we would love to get you going, and build up your wholesaling business with you, so that you too can get your first deal. Thank you so much for joining us on the podcast. God bless you guys, and we’ll see you on the next episode.