Posted on: August 12, 2019
WI 298 | First Deal

 

Have you gotten to the point where finding your first deal has become really challenging that you’re considering throwing in the towel? If you answered yes, then you already have one thing in common with today’s guest.

Kenya Evans is mechanical engineer who’s doing wholesaling on the side. While she sent mail pieces religiously each week, finding her first deal didn’t come easy. Fortunately, the rockstar rhino powered through setback after setback until she finally closed her first deal and walked away $15,000 richer!

If you’re considering throwing in the towel, do yourself a huge favour and listen to today’s episode first. If anything, Kenya’s wholesaling journey will surely inspire you to power through and make things happen!

RESOURCES:

What You Really Need To Know To Get Your First Deal With Kenya Evans

Episode Transcription

I am super excited, as always. You’re probably like, “You said this last time, Cody. You’re always excited.” This is true, but there’s something unique about this story that will resonate with so many individuals reading. For those of you that are new to the show and are reading for the first time, first and foremost, I want to say welcome to Rhino Nation. Welcome to the show. We are going to be talking about wholesaling real estate. Simply all, that is the art of finding deeply discounted properties that you can turn for a huge profit. In some of those ways, we’ll be talking about an assignment of a contract, fixing and flipping homes, or keeping them as rentals.

The exit strategy is up to you. The whole point is if you can learn to find deeply discounted properties over and over again consistently, you are going to be the one that can ultimately live the life of your dreams. We have with us Kenya Evans. She’s from Orlando, Florida, and joined the tribe in December 2018. She did her first deal. I love this whole story. It’s going to touch a lot of you. It’s going to reach many readers because it wasn’t easy. It was a struggle. We hear many people not get into the wholesale because they’ve heard of all the struggle or, “I gave up because of the struggle.” Kenya did not give up and is grateful she didn’t. Let’s bring on Miss Kenya Evans. How are you, Kenya?

How are you doing? I’m glad to be on the show. Thank you for having me.

It’s an honor, and your story is awesome. I’ve already got a few chills going on here. It’s going to be some good stuff. Tell our audience and readers what got you even want to get involved in wholesaling.

I work full-time as a mechanical engineer and have always wanted to get out of the rat race. I came across this video from the Breakfast Club with a guy named Mark Whitten. He started talking about how you can make money by investing in real estate without getting into a lot of debt. I started doing some research and found out he was talking about wholesaling. I got into it. I started seeing people like Max Maxwell, Wholesale to Millions, and you guys. I started reading and catching on. I thought it was about time to find a mentor to guide me in this process.

Tell me a little bit about this, Kenya. What about mentorship and guidance made you want to go that route versus trying it on your own?

I went to something we call YouTube University. Everyone had their advice on contracts. Everyone had their way of doing things. I’m a systematic person. My dad was in the Air Force and very disciplined. I need a system.

 

WI 298 | First Deal

First Deal: Equity is simply the difference between what the home is worth and what someone owes on the home. An unknown equity list is a list of people whom you don’t know how much equity they have in the house.

 

You’re a mechanical engineer. Engineers are system individuals.

We need a process and a step-by-step system. I can’t be scatterbrained. It was put in my heart to find a mentor. I didn’t want to come across any scammers or anything. I prayed about it, and God led me to you guys. I signed up.

Was it unicorns and rainbows, Kenya? Was this the easiest thing? “All I did was listen to Tom and Cody, and the doors opened. I found my first deal.”

It was not. I want to relate it to the story I’ve heard about marriage. It’s the honeymoon phase. Stuff started getting a little shaky and everything. I’m like, “I don’t think I can do this.” Doubt came into my mind. That’s where you surround yourself with good people. My mother, a pastor, always gave me words of wisdom and encouragement and said, “Kenya, don’t give up.” That helped me a lot. I thank God for her for that.

Kenya, you say something crucial. We learn and say this a lot. You’re living proof of this. You’re the average of the five closest individuals you hang out and surround yourself with. No matter what occupation you’re in, times do get tough. When times do get tough, what is the support that you can lean back on? What is someone that you can go to and share these struggles, trials, and challenges? Are they the right people?

Kenya, you could have gone to someone and said, “I’m struggling. I’m trying to do wholesaling in real estate.” They’re going be like, “That’s your problem. Didn’t you see what happened in 2008? You’re crazy. Why did you get into real estate?” That would have been the wrong people to surround yourself with, but you surrounded someone that said, “Kenya, you got this girl. Get it. You’ve got this. Don’t give up. Go after your dreams.” That made a huge difference.

Here you are. We’re going to talk about this deal. You’ve done a deal. You don’t even have to worry about this hope or faith. It’s now a fact that you know this works. It’s going to snowball from here going forward. Keep going. Let’s go right into this. Let’s break this down for our readers. How did you come across this deal? Let’s talk about the marketing channel. What was the list? Let’s start right there.

 

If you’re not uncomfortable with your first offer, you probably didn’t go low enough.

 

The marketing channel that I chose was direct mail.

It’s not dead, Kenya. Do you mean direct mail worked?

It works. That would be consistent, but it does work. The reason why I chose direct mail is that I’m a full-time engineer. It was the best thing to do for my schedule. I didn’t have time to make calls. I chose to use what I was making from my job to support and invest in direct mail. That’s the way I looked at it. The deal came from the unknown equity list.

To maybe help our readers, first of all, what is unknown equity?

It’s a list of people where you don’t know how much equity they have in the house.

Equity is simply the balance or the difference between what the home is worth and what they owe on the home. What Kenya’s even alluding to is to make a deal. There doesn’t necessarily have to be a motivated seller, but also a seller with enough home equity to make a deal happen. Keep going. You send out direct mail to this unknown equity list. People have equity in their homes. You’re sending them direct mail. Are you sending them a letter or a postcard? What does all that look like?

Send them the postcard that the tribe uses. That’s what I used.

 

WI 298 | First Deal

First Deal: If you’re having trouble finding cash buyers for your deal, go on Zillow and research companies that recently sold in your area. Start to skip trace the people that recently bought homes there.

 

Good old tribe postcard. It’s a simple handwritten message that you want to buy their home for cash. How many mail pieces are you sending out? Were you sending out a few hundred or a few thousand a week? How long were you mailing before this phone call came in?

I started my mailing campaign on February 1st, 2019. I was on a schedule of doing 2,000 mail pieces a week, so 8,000 a month.

This is crucial to have people jot down some notes here. It’s 2,000 a week. We often think, “I’ve got a lot of hustle and drive.” That is necessary for wholesaling. We all need a third component in any business, whether it’s sports, mechanical engineering, or real estate. That is enough shots, attempts, or swings. When Steph Curry, why does he make the most three-pointers? Maybe it’s James Harden. I don’t know who it is, but it’s because they also shoot the most attempts.

They also put out there that they’re going to shoot the most threes, and without fail, they will make the most threes. I love this. You did not dabble in it. You didn’t put 10, 15, or 500 direct mail pieces because you have to give yourself a lot of volumes. You can have a lot of shots to let that hustle and drive bring you those deals. Keep going.

I started back on February 1st for 2,000 a week. Sometimes, I would get a call here and there. The response rate was a little bit low here in Orlando. That is why I picked up another marketing channel, Bandit Signs. It was pretty steady. I would go a while, but it gave me exposure. When people called, I made sure I went to the appointments, looked at the repairs, and did my comps. I researched before I went. It gave me good practice. For some reason, either the price was too high, or something else happened. It never worked out to my benefit until now.

Let’s walk this through. What did the phone call come out to? What did it sound like when you got this phone call? Was it instantly, “I’m motivated, get out here, and make me an offer?” What did that all sound like?

The seller gave me a call. I missed it and had to call right back. They were trying to rush me off the phone a little bit. I was trying to see where the motivation was and didn’t have time. They spoke little English on top of that. It was a little bit of a struggle. I said, “I love to meet with you. When can I see the property?” They said, “Come on by this Saturday, and I’ll be able to show you.”

 

When things get shaky and doubt comes to mind, surround yourself with good people.

 

I stopped by Saturday morning and met the seller. He was nice. He said his wife couldn’t make it, but she was also on the title deed. She would have to agree with the price and everything. I already did my research. I knew I couldn’t buy their property for more than $80,000. It came out to be. I came in at $70,000.

It’s giving me some even context behind this. If it’s something like, ” I can’t spend more than $80,000,” what was the after-repair value? What would it sell if the home was gorgeous when that is all taken care of?

It came out to around, from the research that I put up, houses were selling in that area anywhere between $150,000 to $160,000.

That gives us great context. You knew, “To make this work, I can’t spend more than $80,000.” You started negotiating at $70,000. Talk us through the conversation. How did that go?

It was a little tricky because the seller didn’t speak that well of English. I continued to build rapport while I was there. I remember them saying that they had children, and the kids were all grown up. I was like, “What if I asked him if I could speak to his daughter or son?” Usually, 9 times out of 10, the kid knows 100% fluent English. He gave me his daughter’s contact information, and I did everything through her. He trusted her. She was the point of contact between us two. She made sure that they signed everything. He understood what I was saying. I didn’t want to pull a fast one on him or anything. I wanted him to ensure he understood what was happening and what I was offering.

How did it go? Did you get it at that $70,000 price? What’d you end up getting it under contract for?

I got it under contract for $70,000. He agreed. To be honest, I probably could have gone lower, to be honest, but he agreed-upon $70,000. We got the contract signed. He and his wife signed it. I used a system called DocuSign because he lived in another town. It was hard for him to go back and forth. He was a little older, so we used DocuSign to ensure everything was signed and squared away.

 

WI 298 | First Deal

First Deal: When you want to give up, turn to the Word of God or your mother. Go to someone that can fill your ears without any doubt. Don’t give up and keep pushing.

 

You have this home under contract. From there, did you end up buying it? Did you keep it as a rental? Did you fix and flip it? What did you do with it from there?

I immediately blasted it out to all my cash buyers through MailChimp.

You did an assignment of contract where you’re going to try and find a cash buyer to assign the contract to.

This is a hot area where cash buyers were flipping. I figured I could probably find somebody within 48 hours or less if I assigned it.

You send it out to your cash buyers. How many people were interested?

I had 200 people on my list. Half of them opened up the mailing. I also advertised it on Facebook. I had a few hits on it. Some people contacted me and asked me more about the property, but no one committed to my property inspection date. That discouraged me a little bit. I didn’t know what to do at that point. Easter weekend was coming up, so it could have been the holiday. I’m not sure, but I didn’t get as much huge feedback as I thought.

The price was under $100,000. It was in a hot area, so I didn’t understand. I went to God and prayed. I remember saying, “God, I know You gave me the seller. I know this is You. I need You to help me to close this deal. I need You to give me some thoughts or wisdom to close this deal.” He gave me the thought to go on Zillow and start researching the companies that sold in that area. I started to skip tracing the people that bought homes directly in that area within a month. I started skip tracing three companies. It was hard because they were all LLC. I had to do reverse engineering. I skip traced three numbers. Two of them answered and said no.

 

Direct mail still works, but you have to be consistent.

 

I could not find the number of the last one, so I tried looking them up on Facebook but could not find them. I’ve tried looking them up on LinkedIn. I found and messaged them, “I had this property. I’ve seen you doing some properties in the area. Are you interested?” I went to sleep and woke up. He said, “Yes. Here’s my number. I’m interested. I’ll give you a deposit now. I want it.”

Here’s something incredible. I’m going to write more notes than anyone here. I love this. We talked about this before. It is crucial. It was getting tough. You were spending marketing dollars. I remember hearing this story along the way saying, “I need to get a deal soon because my marketing dollars are running out. I got to make this happen.” You were coming into this trial, challenging moment, and kept pushing, which is incredible. You get the homeowner contract. You have no one respond to it. Instantly, you could be like, ” This is awful. I don’t want to do this anymore.”

You could have blamed someone, me, God, or anyone, but you took a different approach. I thought it was cool that you went into prayer. You get inspired to go on Zillow and start seeing who’s working in the area and reaching out to them. That didn’t end up being your answer exactly. It led you on the journey. You started trying to find and skip trace them. That wasn’t your answer, but it led you on a further journey.

It led you to go to Facebook and couldn’t find them. That wasn’t your answer, but it’s your journey. You never gave up. Suddenly, it leads you to think about going to LinkedIn. You find them and create this deal. This is so huge because most people probably would have given up. What an amazing story of pushing forward, the stick-to-itiveness, the getting out there and getting it done. “I’m going to make this happen.” Ultimately, what did you sell this deal for?

I assigned it for $85,000, Cody.

That means a $15,000 payday. She put in a ton of work. Rhino Nation, this was not easy. This is not to say, “Anyone that gets into wholesale is going to do a deal.” However, when you have this much determination, grit, faith, and hope to keep pushing forward, what does this feel like now that it has happened? What does that feel like all that hard work you put into this?

It feels very good. I can’t even put it into words. I can’t tell you how many times I wanted to give up. I turned to the Word of God or my mother because I knew she would not fill my ears with any doubt. She was the one who told me not to give up, to keep pushing, and keep praying. I know it’s not easy, but keep pushing and praying, and a deal will come your way. That meant so much to me. Honestly, all glory to God, but I’m also very thankful for my mother and my father as well, too. He’s a man of few words but a great guy.

WI 298 | First Deal

Kenya, that’s amazing. $15,000 for your first deal. It’s going to snowball into many more. We always end our show the same way. I want to ask you two questions that help Rhino Nation, our readers. The first one is looking back in hindsight.  Is there anything you would have done differently if you were starting all over again? Is there something you had made sure you’d done the same if you had to start over again?

If I had to do anything differently, one thing that stuck out in my mind about this deal is I was a little timid to give my offer. One thing you always preaches if you’re not uncomfortable with your first offer, you didn’t go low enough. I wasn’t as uncomfortable and realized that I probably could have gone lower, but at the same time, I wanted it to be a help to him, too. He put in $50,000, so I wanted him to get a little return. It was a balance. I’m not a greedy person. He was happy, and I was happy. The person who ended up purchasing the property was extremely happy as well.

It’s a win-win-win all the way around. The last one is, what is a book that you recommend to our readers that has been game-changing and might have helped with mindset or creative ways that you continue to win?

Rich Dad Poor Dad changed my mentality about making more money and getting out of the rat race. My all-time favorite book is The Go-Giver because it encourages somebody like me. I’m constantly giving and giving. Sometimes, that can be discouraging when you’re surrounding yourself with people who are takers. It empowers me to keep giving the whole ball of the law of sowing and reaping. If God doesn’t use one person to bless you, He might lose it in another way or choose another person. It will always come back to you, so never stop giving and loving other people.

It’s a great way to end this. Kenya, I want to thank you so much for sharing your story. This is going to inspire, motivate, and lift so many individuals that are reading this. Thank you so much for taking some time out of your day to hop on the show. I’m grateful to you.

Thank you so much. I appreciate it so much.

You are so welcome. Holy smokes, Rhino Nation. What a show. Kenya, who goes out and gets uncomfortable, almost comes down to the point where she has no more money left but keeps pushing forward. She never gave up and surrounded herself with incredible people, including her mom and her dad, but incredible people like the tribe. They were big cheerleaders to say, “Let’s roll. You got this. You can do this.” Ultimately, she did the first deal that paid her $15,000.

Rhino Nation, this can be you. You can do this. This is not luck. It’s hard and takes a lot of work, but you can do this. This is living proof that anyone who can do it that’s willing to get out there and get uncomfortable, stay uncomfortable, and push forward. If you’d like personal help, head to www.WholesalingInc.com and book a call with our team. If it sounds like it would be a fit, we’ll be super excited to help you along your way to getting your first wholesale deal. Until next time, God bless, and we’ll see on the next episode.

 

Important Links

 

About Cody Hofhine

403Cody Hofhine, a multiple Inc 5000 Business Owner. Co Founder of Wholesaling Inc. the #1 Real Estate coaching program across the nation. Co Founder of Joe Homebuyer the leading Real Estate Franchise. A successful Real Estate investor/mentor and sought after Speaker.

Cody has coached over 3 thousand students on how to successfully Build their Real Estate Business through his real estate training as well as help individuals perform at their highest levels with his one-on-one mentoring.

Cody used his background in sales to quickly build multiple 7 and 8 figure Real Estate Businesses that all start on the foundation of clarity or Vision and Purpose.

Cody loves being with his family and doing crazy tricks behind a boat.

 

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