Posted on: July 08, 2019

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!

The Deal

  • Jason found his prospect from the equity list (owner occupied and absentee owner) he sent out direct mails to.
  • After scheduling an appointment with prospect over the phone, he went to see the property and built rapport.
  • Eventually, he was able to purchase the contract for $120,000.
  • While he marketed the property for only $132,000, he got an offer of $137,000. That’s a $17,500 reward for his willingness to fail his way forward and make massive imperfect actions!

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Episode Transcription

Cody Hofhine: You’re listening to another episode here on Wholesale. Inc. My name is Cody Hofheinz and I’ll be hosting today’s podcast episode where we talk about wholesaling real estate. Now, for those of you that are new to the podcast, first and foremost, I want to say welcome to an amazing podcast where we just talk about real estate and talk about specifically wholesaling real estate. Now, what is wholesaling? Wholesaling is just simply the art of finding a deeply discounted property for… At that matter, once you know how to find these properties at a deep discount, my heavens, sky is the limit. You can do so many different options. You can either fix and flip it, you can keep it as a rental, or you can do what many of our students do, and that’s where they either simply assign the contract, or close on the property and then sell the home to a cash buyer for quick profits that they can then replicate over and over again.
Now, today we have a rock star rhino that has been in the tribe for just a short few months. And is already tasting some incredible success, has already closed two deals, and we will save the amounts for later, so he could share the story. But today we have Jason Whitsell with us. He joined the tribe at the end of January, and he just closed two deals that are going to be incredible, that he’s going to talk about the pricing. But we’re going to break down one of those deals so get a piece of paper, get a pen, and get ready to jot down some gold nuggets because Jason’s going to share step-by-step how he did these deals right in Tennessee.
So, let’s bring on Mr. Jason Whitsell. How in the heck are you brother?

Jason Whitsell: Hey Cody, I’m doing great.

Cody Hofhine: Good. Now 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, and we’re going to break down one of them, and then we’ll talk about adding up the two of them together and what it’s been for you for May, which is amazing. And ultimately what got you into wholesale? What do you currently do for a living, a nine to five, and then what got you into wholesaling?

Jason Whitsell: So, first of all, like a lot of people, I’d never heard of wholesaling. So, looking throughout the… I’ve always been excited about the real estate business, and looking at rental properties, and things like that. And I discovered wholesaling. So, I started doing my research on wholesaling and after quite a while looked at different coaching programs and things and I settled on wholesaling. And that day, January 21st, was a day I signed up and I am so glad I did.

Cody Hofhine: Well, it’s led to incredible results in the sense of your action not to give us wholesaling just the credit. I have to be completely honest to every one of our listeners, and to you, the course will do absolutely nothing for anyone that doesn’t take action. So, really the success, my friend goes right back to you where you need to give yourself like a big hug, a big pat on your shoulder because you took massive imperfect action. This is the beauty. 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 and here he is already succeeding, already doing deals.
So, what is it? What is it that got you committed? I mean here it was something just 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 so fired up and pumped up to actually do it though? A lot of people now, let’s say for those that have heard it, or haven’t heard it, but they are like, “Oh man, I don’t know if I want to do it”. What got you to actually do it?

Jason Whitsell: Well, doing wholesaling, just like most people who work a nine to five, and I wish mine was nine to five, it’s a lot more hours than that. But you want something more, and looking into wholesaling is something that anybody can do, and I mean anybody. And it doesn’t take any money. So, I was like, ” you know what, I’m going to try this and this and this sounds like something I want to do”. And I put one foot in front of the other and did exactly what the module said and the coaching program and the phone started ringing.

Cody Hofhine: This is so like… You couldn’t say it anymore perfect than this, you’re not an expert at wholesaling, you just followed it step by step. You took massive imperfect action. And when you say it doesn’t take money, obviously there’s a little bit of money right? 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 kind give people a perspective of what may be the money that’s involve?

Jason Whitsell: Sure. So, I did direct mail, and there’s other ways to do it, driving for dollars and things like that. But, yes, I started with direct mail and with the programs discounts you get for pulling your list, also mailing out the direct mail so it is some money, but it’s not a huge amount.

Cody Hofhine: This is fantastic. So, you sent out direct mail to get these deals. How much, so you can kind of put it in perspective, if you’re sending out a postcard, and let’s call it 35, 40 cents a postcard, how many pieces were you sending out at a time to get that phone ringing enough to start bringing in, now, two deals?

Jason Whitsell: Well, about a 1,000 pieces a week.

Cody Hofhine: 1,000 pieces a week. Now, this is something to jot down for those that are listening. Notice that he didn’t just send out, “Oh, 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. So, if 5,000 mail pieces is your budget, great, divide that up for the month and send it out equally. So, you were sending out 1,000 pieces a week, and then did that equate to like your phone giving you almost too much opportunity, or just the right amount? How was that? Because I think a lot of people here on the podcast also have maybe a nine to five or work for corporate America, and they’re thinking, “Man, what will that produce, will I still be able to handle that lead flow working full time?”.

Jason Whitsell: So, I’m glad you asked that Cody. That’s exactly right. So, not only do I work 50 to 60 hours a week, I also coach my son’s baseball team, [crosstalk 00:07:36] it’s two days a week that we practice, and we play every Friday, Saturday and Sunday through the spring and summer. So, time is what I’m looking for more of. And I got to thinking that I could actually send out more direct mail, but if I did, I don’t know that I could fill out all the phone calls.

Cody Hofhine: I love the honesty here and I think this will resonate with so many people. Because I think so many comes from the background of working even more than full time, more than 40 hours a week, but also love to do what really touches my heart, I love the fact that you coach your kids’ sports. I love that family is something that’s important to you, and even with a good dad and a good provider that you are, you still have found time to make this work. What does that look like schedule wise? Are you doing two hours, one hour? What does that look like? Is it something, consistent hours, amount a day or is it just, “no, I need to make sure I do at least 10 a week”? What does that look like, to break down maybe your work schedule versus wholesaling schedule?

Jason Whitsell: So, out of a seven day week I’m average in about 12 to 15 hours on the wholesaling business.

Cody Hofhine: This is beautiful. So, write this down by the way. I don’t know if I’ve ever asked this many in depth questions by the way. For whatever reason, something triggered my mind to ask some of these questions, but these are the answers right here. I think so many times we think, “but if we’re going to do it, we have to go all in. We’re going to have to spend 40 hours a week” and this is simply not the case. Jason has shared with us right now, 12 to 15 hours a week, which has allowed him to get on the phone with individuals that are responding to this direct mail, and then getting on appointments, making offers and getting paid.
So, 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, now let’s look at this, and let’s break down one of the two deals. One of them that you put under contract second but actually closed before the one that you put under contract first. And let’s go through this. This I’m assuming came from direct mail.

Jason Whitsell: It did.

Cody Hofhine: Perfect. What lists were you mailing to when you got this lead? Where did the lead come from?

Jason Whitsell: I don’t know if that list, if it came from list source and I don’t know if the list has a name, but I did the 40 to 100% equity…

Cody Hofhine: Awesome. So equity list.

Jason Whitsell: Yep. Property that was three years old and older.

Cody Hofhine: Okay. Are these owner occupied or absentee owner?

Jason Whitsell: Both. And single family residences.

Cody Hofhine: Awesome.

Jason Whitsell: And that’s it.

Cody Hofhine: So, people that have, and I’ll break this down for those that are listening, that’s incredible, that’s good stuff, homes that have been lived in for three or more years and then both occupied by owners and non owner occupied or absentee owner. And then the other criteria, which is crucial, is 40 to a 100% equity. Meaning they either have majority of it paid off to all of it paid off, and they own it free and clear. So, they have equity in the home. Awesome. So, let’s rock and roll. What did this look like or what did it sound like when this individual called you?

Jason Whitsell: So, they called, and of course it went into my voicemail, I use Callrail. So, I called them back, and I don’t know the time frame from which I called back, but I did call them back, and I spoke to him, and he told me about the property and what all he had done to the property in order to keep it renovated, keep repairs done. So, the house needed absolutely nothing to be done to it. And we carried on the conversation for a little while, and I was just feeling out, why he’s wanting to sale, and that came later, I really didn’t get a good answer there. So, I went to see the property and…

Cody Hofhine: I think the key thing that you are saying Jason though is it’s… I love the fact that you’re taking time to try and find the “why?”, and I want you guys to write this down as you’re listening to this, notice that it’s not about the price, it’s not about the age of the home. I mean, yes, he needs to know those things, but really listen to what he said, “I was asking questions to find out why, why was he selling, why was he selling? This is key information that I want to make sure you’re jotting down if you’re listening to this. Keep going. So, you went out to the house.

Jason Whitsell: Went out to the house and met with the home-owner and looked around the house, took some pictures. We started, after we made some rapport, we started on how much he was asking for the house, and he was at about $140,000, and I’ve always heard… Now keep in mind this house needed no repairs. Zero. And I’ve heard from so many people that when you make an offer you ought to feel something in your stomach, like embarrassed to make that offer. So, my first offer was $85,000.

Cody Hofhine: Awesome. To give it perspective, when he was asking $140,000, is this what the home was actually worth or was it actually worth more than this? If you were to put it on the market, what was it going to sell for?

Jason Whitsell: About $175,000.

Cody Hofhine: 175 perfect. So, you made an offer that gave you that punch in the gut like, “okay, he’s either going to laugh, or he’s going to punch me in the face”…

Jason Whitsell: Right.

Cody Hofhine: Of $85,000, which I love. Guys take notes, this is incredible. So, you add an anchor price of going way down to $85,000 and keep going, my friend.

Jason Whitsell: And immediately he was like, “no, there’s no way I can take that”. So, we kept talking a little while, and I was like, “what can you do?”. I can’t give you 140 but what can you do from there?” He said, “well, I can probably do 130”. I was like, “no, there’s no way I can give you 130”. I said, “I can come up to $98,000”. And we’re still on the same page. He’s like, “no, I really need more than that”. So, he came down to 120. So, he’s $20,000 off his first asking price, and I was like, “okay, you know what, let’s go with 120 I think I’ll be able to make that work”. So we decided [crosstalk 00:13:44]

Cody Hofhine: So you get it down… Here’s the key thing, Jason, that you’re really, 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, “Oh man, I don’t know”. The best part about this, and the best part that you are able to run with is just, get it as low as possible. You worked with it. You’re not an expert at comping homes, you’re not an expert like a realtor and that’s the best part. That is actually most individual’s secret weapon or secret power is because they’re so naive. They don’t know anything. So their whole goal is just get it as low as possible, which you did. So, you put under contract at 120 what did you do from there?

Jason Whitsell: So, in the middle of all 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. So, knowing that…

Cody Hofhine: And didn’t want to pass up on that deal probably. Like, “Oh we got to act quick”.

Jason Whitsell: Exactly. So, they had originally contacted a realtor and gave the realtors some specifics of what they were looking for. “Hey, we want to make this happen very quick” and the realtor actually told them, “you ought to call one of the wholesale people that can turn this for you quickly”.

Cody Hofhine: Wow. So, a realtor ended up being your MVP?

Jason Whitsell: Exactly. And after they had that conversation with the realtor, my postcard hit their mailbox.

Cody Hofhine: This is so beautiful because there’s no rhyme or reason to when to mail, how to mail as long as you are just staying consistent. And so many times we’re like, “Oh, but when should we mail?” I don’t know. Now. Like right now, like right now, tomorrow, like next week, and then the following week, and then the following week, and then the following week because you just never know when someone, something has changed in someone’s life, and your mail piece hits the mailbox. He who consistently sends out mail every single week wins period. The end. So, yours happened to hit exactly when they were like, “Hey, I want to sell and I want to sell quick”. This is incredible. Okay, so what from there, what did you have to do to make that a reality for them to move it quickly?

Jason Whitsell: All right. So, as soon as I got done there, I came home and got my pictures all loaded, sent out a mail blast to… At the time I had 170 cash buyers, sent that out to them, and I was marketing the contract for $132,000.

Cody Hofhine: Okay, so just the $12,000 assignment where you just simply assign the contract, you have cash buyers, 170, which is very impressive. You market the contract to assign that agreement so someone else can close on it for $12,000 higher and you put it in a contract. Keep going, my friend. What happened?

Jason Whitsell: So, I did that. Put on their my inspection time. You have one day to inspect the property. This is the day, this is the time, this is the only time. Did that. I started getting emails, and phone calls immediately, so I knew there would be some interest here. And the first buyer offered me $110,000. I was like, “Oh man”.

Cody Hofhine: You’re doing it.

Jason Whitsell: Right. Exactly. I was like, “wow, is this not going to work?” So, there were several days that went by and giving people time to schedule to come out for the inspection. And we did that, and I met out there and actually went on my lunch break, because keep in mind I’m working full time. So, I met him on my lunch break, and I had about six buyers there, came and looked at the property and each one of them liked it. So, a couple of days go by, and I told them that, “hey, I need all your prices in by such and such time on this day”. And I started getting quite a few offers, and I got several asking price of 132, but I got two, that were over asking price. One for $137,000 and another for $137,500.

Cody Hofhine: Holly smokes. Keep going.

Jason Whitsell: And both of the top two offers could close immediately. Cash buyers. And I went with the one that was a $137,500.

Cody Hofhine: $137,500 minus out the 120 that is due to the seller. That is a $17,500 payday, if my math is right.

Jason Whitsell: Yes, correct.

Cody Hofhine: Oh Jason, you know it’s coming, right?

Jason Whitsell: I know it.

Cody Hofhine: Hold on. There is the victory bell, my friend for Jason Whitsell. The imperfect wholesaler goes out there and just takes massive imperfect action and led him to his first deal. Now briefly, within 10 days, a second deal closed, and that was for how much?

Jason Whitsell: That one was for $3,000.

Cody Hofhine: $3,000. So, in a 10-day span, for those of you that are listening, in a 10-day span he has made $20,500, in a 10-day span. Now, yes, there is work involved to get those deals to close, but let’s really narrow this down to help individuals see what it can be. If you had to pin hours towards this, both deals, let’s say between the time you talked to him on the phone, met with them, put it under contract, went to title, went to closing, 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?

Jason Whitsell: I would say probably about three hours a piece.

Cody Hofhine: Three hours a piece. So, six hours. Now your mind probably works a heck of a lot quicker than mine, but in six hours of work, he was able to bring in $20,500. Now for those of you listening, I don’t know what has that good of return. That is incredible. And this can happen, and this should motivate you, inspire to let you know that you can do this. Jason, what would the audience need to know? If you could tell them anything at this moment that are like on the edge, or they’re right there thinking, “What do I do? Should I get involved?” What would you tell them?

Jason Whitsell: Cody, I’ll say this. If I can do this, working a full time demanding job coaching baseball on the side, and still having a family life, and I can do this, anybody can do this.

Cody Hofhine: I love that simple but true message. Now here’s the thing, we always, always, always end our podcast with two questions, and I am absolutely looking forward to these two from you. The first one is, what is a good book that you would recommend our audience, that has been game changing for you?

Jason Whitsell: Now, I know this book has been mentioned once or twice before, but it is the book that changed my mindset and that is Rich Dad, Poor Dad. Not necessarily a real estate book, but it is a great mindset book to actually get you thinking.

Cody Hofhine: It is a great mindset. In fact, I just shared this on a podcast just recently, the same book I said, “everyone start”… 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 I’m like, “this was game changing to me”. It was like I hated school, I couldn’t stand school and finally I had a book that said “it’s okay to hate school”. I love that book it its so good. So, Robert Kiyosaki’s Rich Dad, Poor dad. And then also the second question is, looking back, 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 just getting involved, that are maybe just thinking about getting wholesaling? What would you do differently, or what would you have done the same?

Jason Whitsell: So, getting started, I definitely made some mistakes, and I know what those mistakes are, and I corrected them. But I was still able to fail my way forward, and get two deals closed.

Cody Hofhine: Awesome. So, what were those mistakes that… So here’s the thing, we always know we’re going to make mistakes. That’s how it makes us better, to help them understand so it’s not so fearful, or so dreaded. What were those mistakes that you made?

Jason Whitsell: So, I got a tax delinquent list, county. The list was, I think the list was about 20,000 names, and I just started with the oldest tax delinquents dates, and mail for mayor. So, there’s a reason those dates are so old, and they’re still on there. It’s because the properties aren’t worth anything. You know what I mean? Some of them were small lots of lands that were worth just a couple thousand dollars in taxes. Were more, two or three times that amount.

Cody Hofhine: Oh geez.

Jason Whitsell: Yeah, so that’s one. Definitely.

Cody Hofhine: That is awesome. So, but here’s the thing, 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, or what kept you going?

Jason Whitsell: No, not at all. It was just an experience. It was a learning experience.

Cody Hofhine: I love that. I love that. Well, Jason, my man who just delivered an incredible podcast episode, and just 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, but also taking the time to help our audience understand that they can do it, and inspiring them, and motivating them by just your story. So, I want to thank you for time out of your day and doing that with us today.

Jason Whitsell: Well, you’re so welcome Cody.

Cody Hofhine: My goodness. Here we have rhino nation, an individual that not too long ago knew nothing about wholesaling, and here he is closing two deals, and this won’t be the last deals that he closes. This has given him now that faith to fact that we talk about it’s no longer this hope. He now knows inside and out that this works and now this is just going to energize him and put more fire out there to make sure that he gets more deals and I’m super excited that he would take the time to break this down step by step.
Now, each one of you, as you’re listening to this, I hope you took out the pen and the piece of paper and jotted down golden nuggets, because this podcast will do absolutely nothing for you if you don’t take action on the things that you heard today. Take one action item, something that you’re currently not doing that you heard today and 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 as well and if you would like personal help building your wholesaling business head over to Wholesaling Inc.com, that’s wholesaling I-N-C.com, where 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 really want to do. And if so, we would be honored to help build your successful wholesaling business. Until next time guys, take massive imperfect action. God bless each one of you, and we’ll see you on the next episode. Take care.

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