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.
How To Win The Game Of Wholesaling With Kevin Roberts
I’m super excited to be with you. We have got an incredible rockstar rhino that’s going to be sharing his story with you. Before we get going, for those of you that are brand new to the show, first and foremost, I want to welcome you to Rhino Nation, where we talk about wholesaling real estate. What is wholesaling? Wholesaling is 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 turn it into huge profits. We’re going to share one of those methods with you because we have Kevin Roberts from Houston, Texas.
He’s married and has three kids. He joined the tribe in January 2019 but he has a unique story. He’s going to be breaking down the story of what that little action did for him in 2020. This is going to be some fun stuff. Get ready. Get a piece of paper and a pen. I want you to hone in on taking away an action item.
This show is meant to inspire and motivate but if it doesn’t get you to move to action, then it will be in vain. Let’s get you out there taking massive imperfect action. 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 are you?
I’m great. Thanks for having me.
Let’s get going into this. Tell us a little bit about yourself. Ultimately, what got you into wholesaling? What were you doing before you got into wholesaling?
I still have a 9:00 to 5:00 job but had some transformation in my thought process. Everybody has read Rich Dad Poor Dad and I probably read it years ago. My youngest kid graduated high school in 2020. I was thinking about my life, where I was going and the type of effort that I was putting into my 9:00 to 5:00. I wanted to change that lifestyle. I had heard the terminology life in there and living an abundant life. I knew that I will be trading time for money.
Real estate continued to come to the forefront. I made a commitment that this was where I wanted to go because I knew that that will put me on the right side of the quadrant. No matter what, if I could determine my best path, which it’s been a rough one to determine where that is, it would give me this opportunity to have more lifestyle freedom and maybe financial freedom will follow along.
Let’s go right into this and break this down. What we like to do for those that are new to the show is to break down step-by-step what we do each and every day in our lives or how we find deals. Kevin’s going to do that for you. He’s going to break down step-by-step how he did a deal. This was a deal done in March of 2020 but it has such a unique story to it.
I’m super excited for him to share it with you. Get ready to jot down some golden nuggets but more importantly, get out there and take some action. Kevin, let’s break it down. Talk to us about this first deal that you did. 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. A phone call comes in, what took place?
I set up all of my numbers to track the different lists that I was mailing.
Is it through CallRail that you set up your numbers?
Yes. I was originally using Bomber but I’ve transferred over to CallRail.
You’re setting up CallRail so you can track your marketing, meaning you send out direct mail to tax delinquents or notice a default and attach a phone number to each one of those different marketing pieces so we know who’s calling in.
That’s correct. I get it set up. That was my first week sending out mailings and I get a phone call. It comes from a number that didn’t co-exist with the numbers that I sent out for a code violation list and tax delinquent list. I recognized it as being a number that I had sent out in March of 2018. I had tried direct mail. I had been brainwashed that direct mail doesn’t work. I sent out this huge mailing for me at that point in time.
How big was the mail piece? How many mail pieces did you send out in that March of 2018?
I sent one blast of 10,000 pieces.
You did get after it. That’s a huge send-out. You did it all at one time, right?
All at one time. I was going to cut massive action. I used some green postcards. I don’t even know what it said. It goes out and it was crickets. I got hardly any phone calls and had spent all this money. I had a bad taste in my mouth about direct mail. It doesn’t work. Everybody says it doesn’t work and it shut it down. In February of 2019, I get this call from a lady that says, “Kevin, you sent me a postcard. It’s in my top drawer in my kitchen. I kept yours and two others. I want you to come out and see my house.”
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, “What? This is awesome. I haven’t even sent out mail yet,” but you sent it out a year prior.
I go up and see her. I know this area. We got hit hard by the floods during Harvey. 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. She’s been waiting for her daughter to graduate college here in Houston. She was ready to sell. My fear is I was going to run across some pretty significant competition, some guys that knew that area well. I was super nervous about what price that was going to come into but I was still going through the process of learning how to price something. I was pretty confident about what the price was going to be. At that point in time, I knew I wanted to offer her $207,000.
What does something like this look like when you’re talking that number? Give us a little perspective. If this home was in perfect condition, what would something like this go for?
This home is probably going to be almost $400,000 after repair value home.
If you don’t have your own benchmark of success, you will struggle to achieve it.
I’m assuming the floods do quite a bit of damage, not just the typical, “Go in there and fix the carpet and the paint.” You’re probably doing a full almost gut job when something’s flooded.
It was. Unfortunately for her, she had remodeled right before the flood.
You were thinking it could sell for $400,000 when it’s fixed up like, “My number needs to be around 207,000.” Keep going.
I knew that the rehab was going to be pretty extensive because all the walls were ripped out and all of the appliances needed replacing. She had ruined all of the tubs that she had put in. I walked in with her and she comes back at $220,000. I walk away a little bit disappointed. I held steadfastly and said, “I have to be at $207,000.” She goes, “We’re going to meet with everyone else and we’ll let you know.” I thought it was pretty much it. She calls me probably two days later and goes, “$210,000.” I said, “Can you not do $207,000? Is there any way we can do that?” She goes, “$210,000 and it’s yours.” I go, “I’ll take the $210,000.” That works. I’m so close. I was like, “Surely, I can make up that $3,000 somewhere.”
Kevin, here’s something to point out that I love already. Maybe I should have you tell it. At this moment, are you perfect at your numbers, at wholesaling and as an investor? Do you know everything and you’re the master of this all at this time?
No way. What I know now compared to what I knew then is a significant difference.
This is crucial. Everyone reading, why is it that Kevin was able to get out and did this deal quickly? It’s because he went out there with imperfect action. He wasn’t the master. He wasn’t perfect at his knowledge, at pricing homes or at anything that had to do with real estate. What he was is he was good at taking massive imperfect action, getting out there and letting the story unravel.
When something comes up that you don’t know at that moment, learn about it but many times we go into wholesaling thinking we have to know everything like, “I’ve got to be prepped because what if this home’s in probate and it hasn’t gone through probate? I don’t even know what probate is. I need to look at probate.”
We prepare for all these what ifs. Ninety-nine percent of the time, these what ifs never even happen. We get into this almost analysis paralysis. You didn’t. You just went out there and said, “I might make some mistakes and not do it right but I’m going to go out there.” You did it. With $210,000, 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 were the higher price or did she have something that she liked about you to do business with you?
What I learned later on was we had built some good rapport and I spent a lot of time with her. She liked to text a lot. We’d go back and forth talking about the house, her kid’s graduation and them moving back to St. Louis. Once we determined a price, we spent more time learning about the other circumstances and trying to meet her needs and the timing of when she wanted to close, which was important. That had a lot to do with it.
I have to back that up. That’s so true. It sounded like she had other offers and opportunities but I don’t think it’s a coincidence that she came back to you. I don’t think it’s always attached to the price. The fact that you took time to talk to her and treat her like an individual has all to do with it. Keep going. What does that look like that it’s under contract?
It’s under contract at $210,000. I decided I’m going to market it for $225,000.
Do you market the contract to the cash buyers list?
Yes, which isn’t huge at this point. I had spent some pretty good time trying to build the list up. I send it out and decide I’m going to go through it. I learned about the inspection method. I said, “I’m going to try this inspection route.” I set up an inspection for 3 or 4 days later. I asked her to give me two hours at her home. I sent out the email blast. There’s not a huge response to it. I had 4 or 5 people show up to the event like several contractors and people who sent contractors out. Crickets. I didn’t get a whole lot of feedback at that point in time.
I started to hear back from a few people, “You’re overpriced a little bit.” I’ve got all of these doubts in my head, “I’m going to have to go back and ask for a reduction or she’s going to go with somebody else again.” I had one person come back to me and said, “We think we can do it for $225,000.” We locked it up and find that contract two weeks later.
You market the contract to cash buyers and get people to come to the inspection. A cash buyer is like, “I love this.” For those reading, it is like 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. On this one, you were able to put that assignment under contract at $225,000. If I’m doing my math right, you made $15,000 on this deal.
Yes. Here’s the other learning curve. The individual that was buying it was required. I’m not sure why because it was somewhat of an institutional buyer. They want a double-close. That was my first double-close experience at that time. I thought I was going to assign it but it ended up being a double-close, which was a little bit more costly.
What was the end thing? When it comes to an actual value, what were you able to net take home?
We’ve got the victory bell ring in the background for Kevin Roberts for a huge win. Here’s something we want to tell them about. What’s cool is he’s telling you about his first deal but how many deals have you closed on for 2019 besides this one deal?
I closed five deals.
You’ve had this one for a little over $10,000. Your second deal was for $15,000. What about the third deal?
It is easy to get veered left and right from your goals. Do your best to stay in the middle.
The third deal was $5,000.
I’m adding these up. Fourth deal?
We’re at $40,000. The fifth deal?
This one was good, $46,000.
We had $86,000 on 5 deals. Did I do my math right?
This is the power of consistent effort for every one of you reading. Many times, like Kevin and he will attest to this, it’s not easy. He had to get uncomfortable. He spent a lot of money back in 2018 on one last. It didn’t come back fruitful and it gave him a bad taste. He’s like, “I still need to get into wholesaling.” He gets back after it in 2019 a year later. This deal comes back but was done from his consistent effort. 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. Kevin, was this easiest? Is this something that was a smile on your face through every moment or get rich quick? How was it so they can understand the picture of this?
It’s not easy at all. The learning curve has been pretty steep. You’ve got a lot of nights when you’re sending out your mailing like, “Is this the right mailing? Am I wasting money here?” It’s constant doubts about the whole process but the domino effect that I’m starting to see with the lead generation and I’ve got multiple people that we’re continuing to have conversations with could potentially be huge towards the end of 2020.
Here’s the beautiful thing though. It’s this consistent effort. You got uncomfortable and stayed uncomfortable. It paid off. Going forward, what’s nice is it’s no longer this faith and hope process. It’s a fact that this works. Making the motions and the action that you take going forward, you had so much more confidence. You don’t sit there and question or doubt or worry like, “Is this going to work? Is this going to come back?” It’s like, “This has been proven five times. I’m going to throw some gas on this.” Do you see yourself always doing this part-time or at some point, transitioning into this full-time?
It will always be part-time for me or at least for the next years. I do enjoy my other business. Truly, my next goal, once I get to some point maybe at the end of 2020, will be to learn how to scale this. I can reduce the number of hours. I do meetings with sellers in the morning before work, at lunch or in the evenings. I don’t know if that’s sustainable and continuing to have that life of abundance and time with family but 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’ve been known to get ahead of myself and do things before it’s time.
The shiny object starts once you get a little bit or taste a little success like, “Let’s do this now.” I love that you’re taking a thoughtful approach. You’re taking some time and making some purpose behind it. That’s incredible. Kevin, 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 show because there are so many times that I can go back to a team meeting and say, “Listen to what Kevin did in Houston.”
They get these huge amazing takeaways from this show but we always end with two questions. First and foremost is, knowing what you know now, usually looking back, it’s usually a 20/20 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?
There are two things here. Consistency was a problem since I nailed out once and stopped. The reason that I didn’t know consistency would work is that I did not have the right mentorship and benchmark of what success looked like. I didn’t have people around me that would share, “You do have to do this consistently. Mail out every 8 weeks 3 or 4 times. Don’t give up.” I’ve been able to try to give them the dos and don’ts. I see successful individuals and people who are going through the same struggle as I am. I feel like I have a benchmark of where I should be. I have others that I can reach out to if I’m asked that question or have doubts about what I’m going to do next.
The 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 you’d want to share with the audience.
For me, that’s easy. There have been multiple books but one that stands out was Gary Keller’s The ONE Thing.
What did you love about it?
For me, you mentioned that shiny object. We hear it’s pay-per-click, direct mail, cold calling and SEO. To me, I knew I needed to stop, stay focused, give massive action and keep it narrow and focused. To me, it’s been direct mail. I’m going to be the best direct mail marketer possible. That’s been my focus. I’m going to learn how to source deals. The ONE Thing keeps me super narrow in my focus and approach. I’ve got great notes from the book. I continued to read those in the morning to remind myself. I am fearful that I may get veered off to the left and right. I’m trying to continue to stay right down the middle.
The beautiful thing with this approach is a lot of people when this happens are like, “When do I ever expand?” Kevin, at some point, is in an expansion pass but what I love that he said is he’s got to become the master first in one channel and that’s direct mail. He’s going to be the best at it. Kevin’s the type of person that’s going to be smart enough to put a system, a process and maybe a team member in charge of it so that he can bring on the second marketing channel. There is a strategy on how to do this and be successful because there are many individuals that will go into so many things at once. Gary Keller’s book breaks it down.
If you bring on team members, each team member should be focused and in charge of 1 thing, not 10 or 2 different things. Those businesses grow and succeed. It’s a great book. Kevin, I want to thank you so much for being on this show. There are many people on this show that are at the beginning stages that this story resonates. They’re probably questioning, “Can I do this on the side? Does wholesaling require doing this full-time?” There are many things that you’ve shared that allow them to realize, “I can do this.”
You’re welcome. I appreciate what you do. My morning walks consist of listening to someone else’s success stories or failures. I hope they are able to get the lessons there.
I know they have. Thank you so much. For those Rhino Nation reading, what an amazing show. This is something that should give you so much motivation and 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. One day you might realize that you’ll have the option to go full-time. What an amazing story of someone that went out there, tried it and got a little bit of failure that knocked him out at first and is like, “This doesn’t work. Direct mail is dead.” Knew that things still weren’t changing to the way he wanted his full life to be. He got back into it a year later and then he’s finding some consistent deals each and every month.
That can be your story. 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 and if it’s something that makes sense. 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. God bless you. We’ll see you in the next episode.