Are you one of the many who thinks you have to be an expert and put in 40 hours each week to succeed in wholesaling? The wholesaling experience of today’s rockstar rhino will prove those two are nothing more than gross misconceptions!
Jason Whitsell is a fearless new rhino from Tennessee. Apart from the fact that he’s no wholesaling expert yet, he also has a full-time job. However, both factors have not been a hindrance to his wholesaling success. In fact, four months into his wholesaling business, he was not only able to find one deal but two!
Of course, Jason’s hard work coupled with his willingness to make massive imperfect actions has been rewarded handsomely. For starters, he was able to earn an impressive $22,500 on the first 2 deals he ever did. What’s even more amazing? He spent roughly 6 hours on both deals!
If you’re a new wholesaler who could use some motivation and inspiration, today’s episode is exactly what you’re looking for!
How a New Rhino Earned $22,500 in Just 6 Hours With Jason Whitsell
For those of you that are new to the show, first and foremost, I want to say welcome to an amazing show where we talk about real estate and talk about specifically wholesaling real estate. What is wholesaling? Wholesaling is simply the art of finding a deeply discounted property. Once you know how to find these properties at a deep discount, the sky is the limit. You can do many different options. You can fix and flip it, keep it as a rental, or you can do what many of our students do where they simply assign the contract or close on the property and sell the home to a cash buyer for quick profits that they can replicate over again.
We have a rockstar rhino that has been in the tribe for a short few months and already tasting some incredible success. He has already closed two deals, and we will save the amounts for later so he can share the story. We have Jason Whitsell with us. He joined the tribe at the end of January 2019. He closed two deals that are going to be incredible, and he’s going to talk about the pricing. We’re going to break down one of those deals. Get a piece of paper, get a pen and get ready to jot down some golden nuggets because Jason is going to share step-by-step how he did these deals right in Tennessee. Let’s bring on Mr. Jason Whitsell. How are you?
Cody, I’m doing great.
Let’s fill in the gaps. I talked about you’re wholesaling in Tennessee, which is awesome. You’ve done two deals here in May 2019, and we’re going to break down one of them. We’ll talk about adding up the two of them together and what it’s been for you for May, which is amazing. What got you into wholesaling? What do you do for a living, a 9:00 to 5:00, and what got you into wholesaling?
First of all, like a lot of people, I’d never heard of wholesaling. I’ve always been excited about the real estate business. Looking at rental properties and things like that, I discovered wholesaling. I started doing my research on wholesaling, and after quite a while, I looked at different coaching programs and things. I settled on Wholesaling Inc. That day, January 21st, 2019, was the day I signed up. I’m glad I did.
It’s led to incredible results in the sense of your action, not to give us, Wholesaling Inc., the credit. I have to be completely honest to every one of our readers and to you. The course will do nothing for anyone that doesn’t take action. The success goes right back to you, where you need to give yourself a big hug and a big pat on your shoulder because you took massive imperfect action.
This is the beauty. He had no idea of wholesaling. He’s telling the truth. I came here like, “I have no idea what wholesaling is, but I ended up doing it.” Here he is already succeeding and doing deals. What is it that got you committed? Here it was, something a few months back. You have no idea what wholesaling is. You hear a little bit about it. You join the program. You take this action. What got you like fired up and pumped up to do it? A lot of people, for those that have heard of and haven’t heard it, they’re like, “I don’t know if I want to do it.” What got you to do it?
Doing wholesaling like most people who work a 9:00 to 5:00, it’s a lot more hours than that. I wish mine were 9:00 to 5:00. You want something more, and looking into wholesaling is something that anybody can do. I mean anybody, and it doesn’t take any money. I was like, “I’m going to try this. This sounds like something I want to do.” I put one foot in front of the other and did what the module said and the coaching program. The phone started ringing.
You couldn’t say a more perfect than this. You’re not an expert at wholesaling. You followed it step by step. You took massive imperfect action. You say, “It doesn’t take money,” but there’s a little bit of money involved. Did you do direct mail? Is this what we’re going to talk about for one of your deals? What was your form of marketing to give people a perspective of what may be the money that’s involved?
I did direct mail, and there are other ways to do it, driving for dollars and things like that. I started with direct mail, and with the program’s discounts, you get for pulling your list and also mailing out the direct mail. It is some money, but it’s not a huge amount.
You sent out direct mail to get these deals. You can put it in perspective. If you’re sending out a postcard, and let’s call it $0.35 to $0.40 a postcard, how many pieces were you sending out at a time to get that phone ringing enough to start bringing in two deals?
About 1,000 pieces a week.
Notice that he didn’t send out, “I’m going to send out 5,000 this week, and then next month I’ll send out 5,000 this week.” It’s consistently sending out mail every single week. If 5,000 mail pieces are your budget, it’s great. Divide that up for the month and send it out equally. You’re sending 1,000 pieces a week. Did that equate to your phone giving you almost too much opportunity or the right amount? How was that? A lot of people here on the show also have maybe a 9:00 to 5:00 or work for Corporate America. They’re thinking, “What will that produce? Will I still be able to handle that lead flow working full time?”
Wholesaling is possible even if you are working a full-time job and taking care of your family.
Not only do I work 50 to 60 hours a week, I also coach my son’s baseball team. It’s two days a week that we practice, and we play every Friday, Saturday, and Sunday through the spring and summer. Time is what I’m looking for more of. I got to thinking that I could send out more direct mail. If I did, I don’t know that I could field all the phone calls.
This will resonate with many people because many come from the background of working even more than full-time or more than 40 hours a week but love to do what touches my heart. I love the fact that you coach your kid’s sports. I love that family is something that’s important to you.
Even with the good dad and the good provider that you are, you still have found time to make this work. What does that look like schedule-wise? Are you doing like 1 or 2 hours? Is it something like consistent hours amount a day, or is it just, “No, I need to make sure I do at least ten a week.” What does that look like to break down maybe your work schedule versus your wholesaling schedule?
Out of a seven-day week, I’m averaging about 12 to 15 hours in the wholesaling business.
I don’t know if I’ve ever asked this many in-depth questions. For whatever reason, something triggered my mind to ask them these questions. These are the answers right here. Many times we think, “If we’re going to do it, we have to go all in. We’re going to have to spend 40 hours a week.” This is simply not the case. Jason is sharing with us 12 to 15 hours a week, which has allowed him to get on the phone with individuals responding to this direct mail and getting on appointments, making offers, and getting paid.
Let’s hop right into it. Now that we’ve got a background of what this looks like and how you’re able to do it with a full-time job and a full-time responsibility as a dad. Let’s look at this and break down 1 of the 2 deals. One of them that you put under contract second but closed before the one you put under contract first. I’m assuming it came from direct mail.
What lists were you mailing to when you got this lead? Where did the lead come from?
I don’t know if the list came from ListSource, and I don’t know if the list has a name, but I did the 40% to 100% equity. The property was three years old and older.
Are these owner-occupied or absentee owner?
Both and single-family residences. That’s it.
I’ll break this down for those that are reading. That’s incredible. That’s good stuff. Homes that have been lived in for three or more years and both occupied by owners and non-owner occupied or absentee owner. The other criteria, which is crucial, is 40% to a100% equity, meaning they have the majority of it paid off to all of it paid off. They own it free and clear. They have equity in the home. Let’s rock and roll. What did this look like? What did it sound like when this individual called you?
They called, and it went into my voicemail. I use CallRail. I don’t know the timeframe from which I called back. I did call them back, and I spoke to him. He told me about the property and what all he had done to the property in order to keep it renovated and keep the repairs done. The house needed nothing to be done to it. We carried on the conversation for a little while, and I’m feeling out why he wanted to sell. That came later. I didn’t get a good answer there. I went to see the property.
The key thing that you’re saying, Jason, though, is it’s I love the fact that you’re taking time to try and find the why. Notice that it’s not about the price. It’s not about the age of the home. He needs to know those things but read what he said. I was asking questions to find out why was he selling? This is key information.
I went out to the house and met with the homeowner. I looked around the house and took some pictures. After we made some rapport, we started on how much he was asking for the house. He was at about $140,000. Keep in mind that this house needed no repairs. I’ve heard from many people that when you make an offer, you ought to feel something in your stomach, like embarrassed to make that offer. My first offer was $85,000.
To give it perspective, when he was asking $140,000, is this what the home was worth? Was it worth more than this? If you were to put it on the market, what was it going to be sold for?
You made an offer that gave you that punch in the gut, like, “He’s going to laugh, or he’s going to punch me in the face.” You add an anchor price of going way down to $85,000 and keep going, my friend.
Immediately, he was like, “No, there’s no way I can take that.” We kept talking for a little while. I was like, “I can’t give you $140,000, but what can you do from there?” He’s like, “I can probably do $130,000.” I was like, “No, there’s no way I can give you $130,000. I can come up to $98,000.” We’re still not on the same page. He’s like, “No, I need more than that.” He came down to $120,000. He’s $20,000 off his first asking price. I was like, “Let’s go with $120,000. I think I’ll be able to make that work.”
Here’s the key thing, Jason, that you’re what’s good here is because you’re not an expert and you’re not thinking of all these things that get in most people’s way of like, “I don’t know.” The best part about this and the best part that you were able to run with is to get it as low as possible. You worked with it. You’re not an expert at comping homes. You’re not an expert realtor. That’s the best part that is most individuals’ secret weapon or secret power because they’re naive. They don’t know anything. Their whole goal is to get it as low as possible, which you did. You put it under contract at $120,000. What did you do from there?
In the middle of all of this, I did find out their why. The wife of the owner had found a nice little house out in the country, and she was ready to get out of the city.
You don’t want to pass up on that deal, probably like, “We got to act quick.”
They had originally contacted a realtor and gave the realtor some specifics of what they were looking for, “We to make this happen quick.” The realtor told them, “You ought to call one of the wholesale people that can turn this for you quickly.”
A realtor ended up being your MVP.
After they had that conversation with the realtor, my postcard hit their mailbox.
This is beautiful because there’s no rhyme or reason to when to mail or how to mail as long as you are staying consistent. Many times you’re like, “When should we mail it? I don’t know.” Right now, tomorrow, next week, and the following week because you never know when something has changed in someone’s life, and your mail piece hits the mailbox. He who consistently sends out mail every single week wins. The end. Yours happened to hit when they were like, “I want to sell, and I want to sell quick. This is terrible.” What did you have to do to make that a reality for them to move it quickly?
As soon as I got done there, I came home and got my pictures all loaded and sent out a mail blast. At the time, I had 170 cash buyers. I sent that out to them. I was marketing the contract for $132,000.
It’s a $12,000 assignment where you simply assign the contract. You have cash 170buyers, which is impressive. You market the contract to assign that agreement. Someone else can close on it for $12,000 higher than you put it in a contract. What happened?
I put on there my inspection time, “You have one day to inspect the property. This is the day. This is the time. This is the only time.” I did that. I started getting emails and phone calls immediately. I knew there would be some interest here. The first buyer offered me $110,000. I was like, “Is this not going to work?”
There were several days that went by and giving people time to schedule to pick it out for the inspection. We did that. I met out there, and I went on my lunch break because, keep in mind, I’m working full-time. I met him during my lunch break, and I had about six buyers there come and look at the property, and each one of them liked it.
A couple of days went by, and I told them, “I need all your prices in buy such and such time on this day.” I started getting quite a few offers, and I got several asking prices of $132,000, but I got two there were over the asking price. One for $137,000 and another for $137,500. Both of the top two offers could close immediately by cash buyers. I went with the one that was $137,500.
$137,500 minus the $120,000 that is due to the seller. That is a $17,500 payday if my math is right.
Jason, you know it’s coming.
I know it.
There is the victory bell for Jason Whitsell, who the imperfect wholesaler goes out there, takes massive imperfect action, and leads him to his first deal. Briefly, within ten days, a second deal closed and that was for how much?
That one was for $3,000.
For those of you that are reading, in a ten-day span, he has made $20,500. There is work involved to get those deals to close. Let’s narrow this down to help individuals see what it can be. Let’s say between the time you talked to him on the phone, met with them, put it under contract, went to the title, went to closing, and went to everything on both deals, if you had to pinpoint ballpark hours on how many you put towards both these deals, what would you say?
Probably about three hours a piece.
Your mind probably works a heck of a lot quicker than mine. In six hours of work, he was able to bring in $20,500. For those of you reading, I don’t know what has that good of a return. That is incredible. This can happen. This should motivate you and inspire you to let you know that you can do this. Jason, what would the readers need to know? If you could tell them anything at this moment that is on edge, or they’re right there thinking, “What do I do? Should I get involved?” What would you tell them?
If I can do this by working a full-time demanding job, coaching baseball on the side, having a family life, and I can do this, anybody can do this.
I love that simple but true message. We always end our show with two questions. I am looking forward to these two from you. The first one is what is a good book that you would recommend to our audience that has been game-changing for you.
I know this book has been mentioned once or twice before. It is the book that changed my mindset. That is Rich Dad Poor Dad. It’s not necessarily a real estate book, but it is a great mindset book to get you thinking.
I shared this on a show, the same book. It was Entrepreneur Weekly. I was on their radio show, and I said the same thing. I’m like, “I was in high school, and this was game-changing to me.” I hated school. I couldn’t stand school. Finally, I had a book that said, “It’s okay to hate school.” I love that book. It is so good. Robert Kiyosaki’s Rich Dad Poor Dad.
Also, the second question is looking back in hindsight, having your vision of what you’ve done and how you’ve got there, what is something that you would tell people that are getting involved that are maybe thinking about getting wholesaling? What would you do differently, or what would you have done the same?
Getting started, I made some mistakes, and I know what those mistakes are. I corrected them, but I was still able to feel my way forward and get two deals closed.
We always know we’re going to make mistakes. That’s how it makes us better. To help them understand it’s not fearful or dreaded, what were those mistakes that you made?
I’ve got a tax delinquent list county. The list was about 20,000 names. I started with the oldest tax delinquents dates and mail for mayor. There’s a reason those dates are old, and they’re still on there. It’s because the properties aren’t worth anything. Some of them were small lots of lands that were worth a couple of thousand dollars in taxes that were more than 2 or 3 times that amount.
Did it knock you so far off the horse or the rhino and make it to where you didn’t want to do this anymore? What kept you going?
No, not at all. It was a learning experience.
Jason just delivered an incredible episode and did two deals of $20,500 for both of them combined. I want to thank you so much for sharing your experience with wholesaling and what it’s done for you. Also for taking the time to help our readers understand that they can do it, inspiring them and motivating them with your story. I want to thank you for taking time out of the day and doing that with us.
You’re so welcome, Cody.
Here we have, Rhino Nation, an individual that not too long ago knew nothing about wholesaling. Here he is closing two deals, and these won’t be the last deals that he closes. This has given him now that faith to the fact that we talk about. It’s no longer this hope. He now knows inside and out that this works, and this is going to energize him and put more fire out there to make sure that he gets more deals. I’m super excited that he would take the time to break this down step-by-step.
As you’re reading this, I hope you take out the pen and the piece of paper and jotted down golden nuggets because this show will do nothing for you if you don’t take action on the things that you read now. Take one action item, something that you’re not doing, that you heard now, act upon it and get one step closer to your deal.
This is how you do it. It’s little consistent action each and every day that will lead you to your first deal. If you would like personal help building your wholesaling business, head over to WholesalingInc.com. You can book a call with our team and start to have conversations to see if it’s a good fit. See if it’s something that you want to do. If so, we would be honored to help build your successful wholesale business. Until next time, take massive imperfect action. God bless each one of you, and we’ll see you in the next episode. Take care.
- Rich Dad Poor Dad
- Entrepreneur Weekly
- Be sure to join the Wholesaling Inc. Facebook group
About Cody Hofhine
Cody 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.