Posted on: January 06, 2020
WI 340 | Wholesaling


Are you ready to dominate the wholesaling world this 2020? If so, you can’t miss today’s awesome episode!

On the show, Cody interviewed Chris Jefferson, a successful wholesaler (he averages at least 70 deals per year!) from Richmond, Virginia. Aside from being a prolific wholesaler, Chris also has significant real estate experience under his belt. In fact, he has tried several aspects of real estate, including fix and flips and wholetailing.

Ever the go-giver, Chris never held back and candidly shared many of the techniques that are currently working in the market right now. Not only that, he also provided real-time value and feedback so you can get your wholesaling efforts off to an exceptional and profitable start!


How To CRUSH IT In 2020 With Chris Jefferson

Episode Transcription

For those of you who are reading for the first time, I want to welcome you. We’re going to be talking about wholesaling. Wholesaling is simply the art of finding deeply discounted properties that you can turn for a profit. The individual we have with us does about 70 deals a year, which consists of fix and flips, wholetail deals, and straight-up wholesale deals. We’re going to break down one of those wholesale deals he closed on. What’s great is he is so good at consistently finding deeply discounted properties but has a ton of different opportunities to exit.

He does a variety of things, but specifically for this show, we’re going to break down how he wholesaled one of those deals. We’ll share how much he made on the deal and all that fun stuff here during this episode. Get out a piece of paper and a pen and get ready to jot down some golden nuggets that you can take action on so that each one of you can get closer to either your first deal or your next deal.

We have Chris Jefferson. He’s from Richmond, Virginia. He closed the deal that we’re going to be breaking down step-by-step. This guy is going to share everything, so get ready to learn how to do a deal. He’s going to share how he got this deal, what was the marketing channel, and what kind of list he was marketing to. He’ll share it all so that we can help each one of you get one step closer to your deal. Without saying anything more, let’s bring on Mr. Chris Jefferson. Chris, how are you doing?

I’m doing great. How are you?

I’m good. How is the Richmond, Virginia market?

The Richmond, Virginia market is awesome. We get some great deals done here. Overall it’s a great market to work in.

Tell us a little bit about yourself. I know you do a variety of things, but what got you into doing wholesaling and real estate?

It’s interesting. The short story is I started several years ago. I had flunked out of college and was trying to figure out how to get my life together and what the next step would be. I started wholesaling and doing a few deals. The Great Recession came, and that turned that world upside down. As a result of that, I got into doing short sales.

I started doing short sales. In 2010, I transitioned to buying my first flip property. In 2011, we ended up scaling that business into a business that was doing about 20 to 30 flips per year. We did that for quite a bit and then moved into doing new construction properties. We did a lot of infill new construction building for a bit. We did that at a high velocity.

In 2015, what we ended up finding was we started running into cashflow issues because we had so many different rehab and new construction projects going on. As a result, we decided as an office that it made sense to start wholesale aggressively. We had all these leads that we were interacting with. Since I first started, I have always maintained direct-to-seller marketing channels. The mistake that I made at the time was that I cherry-picked the deals and discarded the deals that I didn’t want to purchase, flip, or build. We left a lot of money by doing that.

You’ve got to be as true to the comps as possible.

That’s what I’m saying. I’m like, “How many dollars did he leave on that table?”

I’m sure it was millions. We recognized this. Anybody who has ever done fix and flips or done velocity in terms of construction is a draining and costly business. It takes a lot of money to cash for those types of projects when you do that many at one time. We started wholesaling again in about 2015. It was pretty crazy. We started wholesaling with a combination of wholetailing, and it started to shore up the cashflow issues that were being created from our flip business. When I saw that after a few months, I realized, “We’re making more in wholetailing.”

Break it down a little bit for the audience. What is wholetailing? They’re like, “I understand the concept of wholesaling, but what’s a wholetail deal?”

I’m going to say what a wholetail is to me. Everybody has a different perspective on it because it’s such a new term. To me and my business, a wholetail deal is a direct-to-seller lead that we make a decision that we do not want to do a traditional wholesale, so we don’t want to do a traditional assignment. Instead, we’ll purchase that property, take it down, and then list that property on the MLS. This is confusing for a lot of people. We don’t do that on properties that need minimal work or cosmetic flips. We do that on any type of property.

You can do a wholetail on a home that’s completely run down. It may be garbage. Even though most people are like, “You can’t put it on the MLS because no one can qualify,” you do it as a cash sale at that point.

That’s exactly right. We closed a deal that was a teardown. The house next door is being torn down as well. I purchased that property and did nothing to it at all except getting the squatter out and purchase it. I snuck that property on the MLS. We ended up selling that property on the MLS, but it wasn’t one that we could have wholesaled and made the same amount of money.

Tell me the difference. That’s what intrigued some of the people reading. They’re like, “There are deals that I’ve thought about. Had I wholetailed it versus wholesaled it, I could have made X amount.” On this specific deal, what would you have made for a wholesale assignment versus when you did the wholetail deal?

If I had done a wholesale deal on the one that was a teardown, I would have made about $5,000 to $7,000 as an assignment fee. We used a private lender loan. By purchasing it and then putting it on the MLS, the true cost area is on the sales side. We have agents that we work with that charge a flat fee to put a property on the MLS. We do pay a sales commission when we list it in the MLS. We ended up selling it and making a net out of $25,000.

If you’re making $5,000, you’re earning five times exactly what you did.

It takes a little longer. We could’ve wholesaled it and made $5,000 in a few weeks. It ended up being a 6 or 7-week deal. Once we put it on the market, we listed it a little bit high and dropped the price a couple of times. I did it with 100% private financing, so it didn’t cost me any money out of pocket. My lender makes a little bit of money. I make really good money. I make $25,000 instead of $5,000.

WI 340 | Wholesaling

Wholesaling: When you’re doing deals inside of a city area, and things can change block by block, you can truly make yourself believe that the comps are anything that you want.


The idea behind that when we shifted heavily into the whotetail business model was we wanted to create situations with our lenders. Keep in mind. I’ve been building houses and flipping houses for a long time. The availability of private capital was there. We wanted to maintain those relationships as we moved into a wholesale business model, and then we’d have less flip inventory.

The opportunity for us in that was that we built up and strengthened these lender relationships. We work out deals with them that provide a pretty quick return on a wholetail transaction. The intent with that is as we move into different market cycles and different opportunities present themselves, we have already built these strong private lender relationships. We decided to open so we could have additional capital when the market switched.

That’s awesome. That’s solid. We have great input here already. For those of you that have thought about the wholesale versus the wholetail, that’s a great description of what it can be. What are some of the things that they would need to look out for? On a wholesale deal, sometimes, you don’t even have to close on it. It’s a straight assignment. You can assign the deal without even closing the deal. Some people might have to double close. What are some of the risks so that we can help those people that if they were thinking about it, they knew what some of the common risks are of doing a wholetail deal?

There are states where you don’t have to do this, but the common risk of doing a wholetail deal, at least in Virginia, is you’ve got to purchase the property. You can’t list the property in the MLS without having owned it or owning it.

That’s a good point. That’s the same in my state. It’s probably the majority. This is good content you’re giving.

I’d say that’s a downside. You have to have the ability to raise the capital, and you have to be intentional about how you set up those financing agreements with those lenders. Lenders are going to like short-term, but they’re not going to like short short-term because they can’t make enough for it to be worth sticking that money out. You have to structure it.

This is what we do. We structure it where we give them a little bit of a bump on that short-term interest, so we add an extra point there. The annualized interest at 10% isn’t it going to cost you very much when you hold something for 60 to 90 days. We put an extra point on loan, so it juices a little bit for the lender. It doesn’t have a ton of impact for us, but that helps us get by that possible setback in terms of doing the wholetailing. The other piece of that is you don’t want to purchase a property and then not be able to sell it.

This is a good one. I was like, “At some point, he’s going to say the obvious one,” and that’s it. To those of you that are reading, that’s the obvious one. It’s taking down or purchasing a home and then realizing your numbers were completely wrong, and you can’t even sell it for what you bought it for. That can be one of the things that can happen, so you do need to know your numbers.

Chris knows his numbers. He knows what he’s going to purchase when he does it. He’s done this before, but it’s one of those things. You need to come to this educated enough to know what your numbers are and if those numbers make sense. Even though it sounds like, “You’ve got to know your numbers,” we’ve seen people purchase homes and then not be able to move them because their numbers were off that much. That’s a good point.

On the first flip I ever did, I lost $15,000, and the only reason I lost money on that house was that I convinced myself that the numbers were something that they weren’t. When you look at comparable sales on a property, it’s different when you’re dealing with a property in the suburbs where the entire neighborhood is exactly the same.

Don’t put yourself in a situation where you’re going to lose money.

When you’re doing deals that are inside of a city area and things can change block by block, you can truly make yourself believe that the comps are anything that you want. The danger with that is if you could get a deal and you’re like, “I want to make $20,000 on this, so it’s worth $80,000,” you make yourself believe that, when you go pull those comps, you’re going to find the data to make yourself believe that it’s an $80,000 deal.

That’s true. I’m assuming that ended up being one of your biggest losses.

It was rough. It was my first deal. I was discouraged. I flunked out of college, so I thought that maybe I should try to go back. It was a tough thought process. That was my college-level flipping experience In terms of the money loss. What I realized from that is forever forward from that moment, I’ve got to be as true to the comps as possible. The deal’s not a deal. I’ve always got to be ready to walk and say it’s not a deal.

I’ve got very specific comparable parameters that I like to use. I tend not to deviate from that too much unless it’s a rapidly appreciating situation, which we’re overall most likely on the back end of that, at least in Richmond. For a long time, the market appreciation was happening at a pace that would outpace the value of a property. You can predict that based on the quarter-over-quarter numbers. The decision-making has to be different, especially when it comes to the wholetail deal, and you talk about the risk of potentially buying something and then not being able to sell it.

What I tell people is that ultimately, you’ve got to be honest with yourself. Nobody else can do that for you. Whoever in your business evaluates deals, and whether you have a partner or a sole proprietor, it’s your responsibility to stay in touch with the comps and be true to the comps. Don’t put yourself in a situation where you’re going to lose money.

I’ve had a couple of deals that we went to wholetail that we ended up not selling for what we anticipated. Often, what happens in that situation is we end up making what we would have made by wholesaling it in the first place. I still see that as a win. It’s a downside, but it’s still a win because we’ve furthered nurturing that relationship with those lenders. As we continue to move forward, it’s going to increase the opportunity that’s available to us in terms of capital.

I love it. These are awesome points. Before we move on to talking about the deal he closed, the last one is also looking at the time of year. When it comes to the Christmas season and winter months, typically here in Utah, real estate starts to go down on the retail side. You start to see the home sitting on the market a little bit longer than when there’s no snow on the ground. Those are things you got to consider. You’ve got to keep the gas and utilities in your name and keep that house warm so the pipes don’t freeze and blow up. You also got to pay for insurance.

There are things out there that can happen, but those are some of the things that, as long as you’re prepared for and they’re still part of your numbers, and it still makes sense, you can move forward. We were lucky nothing happened, but we had bought a house that had stayed on the market longer than we thought. We didn’t think about the insurance costs or the heating bill to keep it above freezing, so the pipes didn’t break.

There are things that go on with the winter months. That’s the last one I want to tell you about. We’re going to break down a deal that he did from his phone through text messages. I’m excited to learn about this. Let’s go through this and break it down step-by-step. What does the text message look like? What kind of lead source were you texting when you got this deal?

For this particular deal, it was on a stack list. The list was a driving-for-dollars list and a tax delinquent list as well.

WI 340 | Wholesaling

Wholesaling: The decision-making has to be different, especially when it comes to the wholetail deal, and you talk about the risk of potentially buying something and then not being able to sell it.


He’s on to two different things. You thought, “I’m driving for dollars. Here’s a home that is great. It’s distressed,” and then come to find out it’s also on the tax delinquent list.

We used a service called Lead Sherpa. That is a text platform for investors. That is a solid product. It gives you an opportunity where you can skip trace a side of it and reach out to your property contacts pretty quickly.

What does the text message look like? Is it a small text? Is it a long text? Are you trying to get someone intrigued? How do you get some intrigued from a text message?

The interesting thing is we went pretty heavy in the text messaging earlier this 2020. In 2019, we jumped into it. There are so many different variations of what that initial text is. We’ve got maybe ten different initial texts that we use.

Do you use that for split testing purposes or because there are so many different personalities that you have to hit them with ten different ones?

It’s a split test method. What we’ve also found is we frequently have to mix it up. We may have somebody that we may have texted with one initial message a couple of months ago. Maybe we texted them with that message twice and never got a response. We’ve then switched that up on a follow-up and changed that to a different initial message. After that, we get a response back.

Texting is still in that early stage where people are starting to implement it in their business. What we found is you have to switch those messages because of carrier issues frequently. Carriers can block those messages if they see you sending out a blast with the same numbers of the exact same message over and over. We like to have that adjusted for the purpose of getting responses but for also the purpose of deliverability as well.

This is crucial. Write this down. I know that sometimes when we’re reading this, we don’t know how much gold this is that he’s sharing. There are ten different versions of that initial text. I know many of you who are reading are at the beginning stages. Sometimes, you’ll try a marketing channel, and it doesn’t work, so the first thing is to be like, “It doesn’t work, so I’m not going to do it. It doesn’t work in my market.” What we can learn from Chris and what he said is one message may not work for some people, but then the second message hits them up. It’s no different than cold calling and direct mail. There are two different marketing channels.

We’ve sent a guy five direct mail pieces. We never heard from him once, but when we do a cold call, he answers the phone and says, “I’ve got a home. I’ve wanted to sell forever.” It’s like, “We’ve been mailing you five times. What’s going on?” There are so many different personalities out there that they respond differently, even to the variation of those text messages. This is good stuff. I love it. It’s on a tax delinquent/driving-for-dollars. You send out the message, and then instantly, was it messaging back through texts or calling you back? What does that look like? What is the call to action? Are you looking to engage further by text or getting them to call you?

I’ve been on a bunch of these text conversations and found what works and what doesn’t work. For us, we like to engage the person in the text message. In your initial text message, you want to address the person directly. You don’t want it to come across as a bulk solicitation, and it shouldn’t be. You wanted to address the person individually, announce whoever it is that it’s in the seat driving the conversation, reference the property address, and then what the intent is. The intent for us is to identify them as the owner and also to see if they’re open to an offer.

The beautiful thing about this business is you can do it in so many different ways, and it can work. You got to find what works for you.

From there, it starts to get to the details where you’re going to hop on the phone.

We like to drag that a little bit. The beautiful thing about this business is you can do it in so many different ways, and it can work. You got to find what works for you. What we found is we like to gauge. If that person appears that they’re being responsive by texts, then we don’t feel that we need to immediately get over to a sales rep to then carry the conversation by phone.

I’ve done a few deals by text, but we’ve never spoken on the phone while getting it under contract. You have to gauge the seller. If you’re talking to a lead and they’re responsive by text and not giving you one word-responses, we tend to engage in that person and that conversation and get the information that we can as far as what’s the condition of the property, why are they looking to sell, or have there been any recent repairs to the property in the last couple of years.

We like to engage in that conversation by text if they appear comfortable in doing so. The biggest benefit is it gives us the ability later on, as we negotiate and interact with that seller, to reference back to conversations that we’ve had with them pretty easily because it’s by text. We can look at a PDF or look at it inside Sherpa.

It allows us to have a reference point as we move forward with them in terms of negotiating. It also gives us the ability from a training perspective as we put more people inside Sherpa. They get the opportunity to refer back to conversations easily and see what worked and what didn’t work. I’m going to give you a good gem that works well for us.

When someone tells you, “I’m going to give you a good gem,” that’s a time to say whatever you’re doing, or if you’re driving, you pull over and get ready.

We started having this issue where we would be engaging in conversations with folks by text, and then the conversation would drop off. They said they were open to an offer. They were telling us information about the property, and then for whatever reason, the conversation started to tail off. One thing that I realized that we needed to do was that we had to pay attention to the response time.

Generally, we think about ourselves. I’m an entrepreneur. I’m available all the time. There are a lot of people who have jobs and things of that nature where they don’t have access to a phone. They could be a person who only texts in their spare time, or they don’t constantly check their phones throughout the day as we might.

We started going back and paying attention to the response time on their text messages, and what we found was over the course of a few days or a few weeks, by talking to a lead, most people responded within the same time windows daily. We made a shift in the business where we don’t just follow up when we go to follow-up. When we want to follow up, we follow up when that person is showing a pattern of responding in a certain time block.

If I’m trying to follow up with you and you respond 4:00 PM to 6:00 PM typically in our text conversations over the last weeks, then we’re only going to try to catch you inside that time window with those initial follow-up texts. We had found that that gives the highest percentage of likeliness to get that response to re-engage the conversation.

WI 340 | Wholesaling

Wholesaling: In your initial text message, you want to address the person directly. You don’t want it to come across as a bulk solicitation, and it shouldn’t be.


I’m sitting here chuckling because I’m like, “I hope everyone reading this understands the value behind what he shared.” This is a data-driven business right here. In what he’s explaining, instead of being mind-driven where it’s like, “I’m going to text him wherever I want,” he’s letting data tell him what you should be texting them during a certain time because that’s when they initially responded to you. He allows data to drive his business.

When we get more to where data is driving our business, we start to see the real lift-off. That’s when we see our business go to different levels when we start to scale. Everyone talks about scaling their business. Most individuals that are scaling their businesses that are succeeding are data-driven individuals. They know where to put their marketing dollars because their data are telling them, “This is the best place to put your dollars because it will give you the highest return.”

Look at what he’s saying with these text messages. In the times that they’re responding, keep your further conversations within those times because it’s not that they’ve gone dark. Maybe it’s the fact that all the other times you’re sending out those texts is not in a timeframe when they can get back to you. It starts to play a game on us like, “I’ve lost this one,” when indeed it could be the simple time that you’re responding to them. This is killer stuff. What did this deal look like? You get this deal, and you’re talking to them through text. Did you go out there? Was this something that you ended up putting in a contract through text, or did you get out to the home on this particular deal?

The reason I talked to you about this particular deal is that this may have been one of the most interesting seller interactions I’ve had in the past couple of years. The conversation started by text. The seller started to drift a little bit on us. We recognized that is when we need to transition it into a phone call because we’ve engaged with them a little bit.

They’re waiting and saying, “You said you want to buy the property. What do you want to do?” Our sales rep transitioned that into a phone call and set an appointment. He went out to look at the property and took pictures of the property. That’s how that works for us. Our rep goes out and takes pictures of the property. I get those back and then review them and determine from the pictures whether or not we want to wholesale it or wholetail it.

We got the pictures back, and I took a look at them. It was in the in-between. We use a method to determine wholetailing versus wholesaling. If we feel that with the wholetail, we can net out after lender expenses, closing costs, and commissions more than $17,000, then it makes sense to pursue that as a wholetail to take a shot at that higher profit.

This one was between $15,000 and $17,000. We couldn’t hammer that out. As a result, I finally figured that I needed to look at the property personally to make the determination. A rule of thumb that I have is it’s not a real deal unless we have it under contract, so it’s not worth me personally going out and looking at it unless we have it already under contract before I go to look at it.

We started playing this cat and mouse game with the seller in an effort to get the property under contract. The reason I wanted to talk about this particular deal is that you see this happen a lot with sellers in terms of them being hard to get back on the phone or being hard to make some decision. You have to negotiate with them and use sales tactics to close that loop and get them back on the path of progress in terms of sitting down and getting a contract done.

We interact with the seller. She’s all over the place. A sales rep sends out the initial contract. We’ve agreed on a price verbally. He has spoken with her by phone. She has agreed to a price, and we are trying to get that signed by DocuSign. We like to do 1 of 2 things. Typically, we prefer to get deals signed electronically by DocuSign.

If there’s somebody that doesn’t seem that they are very computer literate or doesn’t have easy access to a computer so they may work at a job and then they can only access it at certain times, we want to get deals under contract as quickly as possible. Often, we’ll send out a mobile notary. We’ll tell them, “It doesn’t matter where you’re at. We’ll send a mobile notary out to you to sign the contract.”

You have to meet people on their energy level when you’re negotiating with them.

This lady became hard to pin down to get the contract on. She wasn’t very responsive. I don’t remember the particular text, but we have a text that we send that is a passive-aggressive text. It’s like, “I don’t know if I did anything wrong. I know that we agreed on a number. We were trying to get the deal done. If, for whatever reason, you don’t want to work with me, please let me know.” She responds to that and says, “I want to sell the property. I’ve been traveling. I’m busy.” With somebody like that, we immediately recognize that they may have a hectic schedule. If we are waiting for them to say, “I can meet and look at the contract now,” it might never happen.

We have an office, so I like to get people in the office and get them in the conference room. I know that if we can get them down and I can sit down with somebody face-to-face, the likeliness that we can negotiate a deal and get it put on paper increases significantly. We had the lady come to the office. She shows up sitting in the conference room. It was her, me, and the sales rep.

I’ve never met the lady before. She pulled out my purchase contract, where she edited the contract. It was crazy. She edited the contract in red ink. If I could show it to you, she changed the entire contract. I couldn’t pinpoint one thing. She changed almost the entire contract. She didn’t want and/or assigns in there and all these different things.

We sat down, and I spoke with her. I believe that you have to meet people on their energy level when you’re negotiating with them. She was being very matter-of-fact and not saying very much, so I said, “Are you an attorney?” She started laughing and said, “I’m not an attorney, but I used to work in the legal department at a local Fortune 500 company headquartered here.” I joked back and said, “I see what you did in my contract. I’ve never had somebody beat up my contract like that.”

I’m a college dropout. I don’t know everything. I work in real estate, and she has even corrected my grammatical errors inside the contract. We go over the contract and go line by line on the things that she wants to take out of the contract. It sucks because I was in a short time. I had an appointment that I had to get to, and I couldn’t miss it, and I didn’t anticipate sitting down with her and having changes in the contract.

It is necessary sometimes. To everyone reading, sometimes, you have to go over and above if you want to get deals done. Keep going.

I like that you said that. My sales rep gets paid on these deals, but he even said, “Is this one that we should say, ‘Screw it,’ and not do the deal?” I’m like, “We can at least make $10,000. We don’t want to leave that on the table.” We sit down and keep going through the contract. I started to realize that her concerns in the contract once I took the deal back came down to three things. She did all these changes, but her main concerns were not to feel that she was going to be taken advantage of. You got to be able to recognize that, especially when we’re in these direct-to-seller interactions. There’s not the typical bridge of the trusted third party.

There’s no realtor or attorney.

It is our responsibility as wholesalers to go above and beyond to bridge that relationship gap and solidify that trust in these transactions. I recognized that the and/or assigns were a concern for her because she understood that in a different capacity. I put it similarly as it worked in a corporate world. She had a concern about the closing date. We wanted the closing date to be very fast, and she needed more time. This could have been a method to drag out the time.

She also uniquely had a concern inside the contract. We have an attorney line or clause that is pretty standard. It says, “In default, the prevailing party would get attorney costs.” That was a big thing for her for whatever reason. We isolated down to these three things and started talking about the three things. The first was the and/or signs.

WI 340 | Wholesaling

Wholesaling: It is our responsibility as wholesalers to go above and beyond to bridge that relationship gap and solidify that trust in these transactions.


I explained to her, “I can understand the concern about whether the property is being assigned or not. What I can tell you is that I’m the direct buyer. I purchase real estate, and I use different entities. I’ve got almost twenty different LLCs that I use to purchase a property. As a result, when I buy a property, I typically always buy them inside a land trust.”

To build confidence with her, I pulled up a closing from a wholetail that I bought. I ended up showing her the land trust because I recognized that she was a detailed person and that I needed to build trust with her. I ended up showing her some paperwork from a land trust on a property that I had bought prior. I explained to her that I didn’t know what land trust I was putting in until I knew exactly where I was getting the loan to close the property. She understood that. We resolved that by creating the land trust on the spot and then had the lady at the front desk notarize it. The land trust is then complete.

These are good points. To point out to the individuals reading this, so many times, we try to be prepared for these problems like, “What if this happens?” Chris said, “I’ve never even seen this before.” It’s not even the fact that he could have even prepared for any of this. That’s the beauty of getting things done. When you’re a wholesaler, you’ve got to be willing to not sit there and overeducate yourself and think, “What if this happens and this happens?” and you start preparing.

The problem is most of you will never take launch. You’ll never go out and do a deal because you’re stuck behind this analysis paralysis. What Chris is suggesting is to get out there. When the problems present themselves, that’s when you solve them. I can tell you that they’re brand new things he’s never even had to do before, but he figures it out on the spot.

When we talk about this massive imperfect action, Chris is giving you a perfect step-by-step example of what it means to take massive imperfect action. You get out there, put a home under contract, and if some struggle, trial, or challenge faces you at that moment, you figure out, “What do I need to do next to keep moving this forward?” and not, “How do I prepare for five years before I go out there and even put one home under contract?” I love this.

For the past couple of years, we’ve had it written on the whiteboard in the office. Speed is life. I guarantee you that when it comes to wholesaling, we’re all contacting the same lists or talking to the same homeowners. Speed is the quicker you can analyze a property, the quicker you can make an offer on a property, or the quicker you can move a property to close, the more successful overall you can be in wholesaling in general.

What did you end up making on this deal? After working through all these problems, what did this allow you to do? Did you do a wholetail deal on this one?

I did not. We ended up doing a wholesale deal. We realized that we had to be intentional about how we did this deal. The numbers felt too tight to make sense to do a wholetail deal. As a result, we decided to wholesale it. I recognized that this lady was super protective. After we got it under contract, as I was walking through the house and taking pictures, this was a property she had tried to rehab and ran out of money. She is following me around the property as I’m taking pictures. She would not provide a key for access. We know that we want the keys so that we can get our buyers in the door.

I said to my sales guy, “This isn’t a buyer’s list deal. We need to call our best buyers. There’s a trust issue here with the seller.” We bridged that pretty well, but we can lose that at any moment. We don’t want to flood a bunch of people through this property that doesn’t have any real interest in buying it. We target very specific areas of Richmond where we know we can turn properties very quickly. What we did was we reached out directly to about three of our good buyers. We did that through an agent who handles dispositions for us.

She reached out to those three buyers and went over the pictures and the market analysis with them. We narrowed it down to one of those buyers to his ballpark number of what he would pay for was higher than what we were asking for, so we knew if we could get him in the door, this was a deal that he didn’t want to buy and close on. We know that he can close deals in seven days.

Speed is the quicker you can analyze a property, the quicker you can make an offer on a property, or the quicker you can move a property to close, the more successful overall you can be in wholesaling in general.

We made the decision to let him go to the property first. It wasn’t one that we needed to try to bid up or run a bunch of different buyers through. It was a turn and burn. It was one that we needed to get a bar on the door, give them a good deal, make some money, and get down the road. We did that, and on this particular deal, we ended up making $15,000 as an assignment fee.

Working through this and then finding a unique way to disposition it brought you a $15,000 assignment, which is awesome. That is a good assignment amount. In the closing of this episode, there are two questions I always like to ask. What’s a good book that you have read that would be game-changing for someone that is getting into wholesaling and want to do their first deal? What’s something that you have read that’s been like, “This is a book worthy of sharing?”

I’m going to tip my cap to you guys. I ended up reading The Go-Giver. It’s a phenomenal book. I want to say why this book is good for everybody in the business. We live in this space, especially as wholesalers, where there’s this unnecessary idea of competition. The reality is that it’s not real. We can help our fellow wholesalers. We can help each other. It will overall make the community better.

I’ve seen you guys talk about this book for a long time. A couple of people on my team have read this book and motivated me to go out and read it. For a long time, I have believed in being a go-giver. This is an important book that can help change your mindset and be able to recognize that by giving, things return to you tenfold in your personal life, business life, or whatever the case might be.

Here’s one that I’m excited to know for myself. Looking back, knowing what you know now, what would you do differently if you were starting at ground zero?

That’s something I’ve given a tremendous amount of thought to by being in business for years. I’ve done every aspect of this business, from bird-dogging to wholesaling, new construction, and flipping. We re-developed 23 apartment units on an apartment complex we purchased. We’ve done it all. The answer to that question for me in the way that I ran my business in the past couple of years is I would have focused on wholesaling. I would have never stopped wholesaling.

We stopped wholesaling, but we continued with the direct-to-seller approach. We did it only for my own business. We were doing velocity, volume, and flipping, and we constantly needed new deals, so we only focused on deals we wanted. I would have never stopped wholesaling from 2010 to date. I would have always kept wholesaling because the power of being a direct-to-seller combined with the velocity and revenue that you can generate with wholesaling and what that can do on other parts of your business is phenomenal. That’s one mistake and something that I would have done differently, which is very important. I would have focused earlier and sooner aggressively on passive income.

It’s never convenient to buy passive income or rentals. I don’t care how big the business is. Keep going. I’m with you 100%.

In hindsight, I truly would do those two things differently. I vividly remember starting out. I did volume and flips. We had a lot of money coming in very quickly when I first started my business because of the number of flips that we were doing. It gets you jaded, especially when you’re young. I was in my early twenties at the time. You get jaded in what you think things are supposed to be. It’s that mental concept of, “I can make $24,000 in 2 weeks, or I could make $300 to $400 a month. I’m going to take the $24,000.” In hindsight, it’s not that I believe there’s anything wrong with taking the $24,000. What I believe is you have to mix it up.

If I look at my own journey, had I started inquiring about those assets earlier, in the span of a couple of years, I would have accumulated a much larger network with potentially less cash, but maybe not because I could have leverage against that portfolio. I don’t like to call them regrets because I don’t regret anything at all.

WI 340 | Wholesaling

Wholesaling: We live in this space, especially as wholesalers, where there’s this unnecessary idea of competition. The reality is that it’s not real. We can help our fellow wholesalers. We can help each other. It will overall make the community better.


Those are two things I’m conscious of that if I could do it again and encourage people to do it that way, I would have continued to wholesale, and I would have made sure to pick up passive income-producing assets. That would have given me the opportunity to leverage better. When I talked about running into cashflow issues from flipping 20, 30, and 40 houses a year, if you’ve got a portfolio, you can pull out against some of that portfolio to fix those issues relatively quickly.

It gives you a lot of opportunities if you build that portfolio. Somebody gave me some great advice a couple of years ago when I started to pick up rentals. It was my birthday. I was in LA and having a great time. My buddy calls me and says, “What are you planning to do going forward? I know you’re talking about changing your business around.” I said, “I’ve got to buy more rentals, but with the way the market is right now, it feels like a phenomenal feat.” The market had appreciated so much. There was so much investment activity. It’s hard to see that you can get deals for the price you want.

He said, “Simplify it. If you buy 10 rentals for 10 years, you have 100 rentals. That’s a pretty reasonable target to hit. If in 10 years you’re going to be 32 or 31 years old, with all the other stuff you got going on, that’s not a bad portfolio that you have.” Once I recognized that, I made that brain shift. That’s what moved us into looking into apartments and some of these other different things.

We looked at apartments and said, “We can pick up single-family homes from what we can’t do at the velocity that we want to do.” Maybe doing the apartments can help us jump the line a little bit until we can pick up 23 doors in one space versus having to go by 23 single-family units. Buying it in one spot in a complex is going to be an easier thing to do. Those are my two things.

Chris, I want to thank you for being on the show. It’s been an honor to have you share some of your wisdom and knowledge with Rhino nation. Thank you so much for being with us. I know you’ve got a ton of things you could have been doing, so I appreciate your time.

I appreciate you having me on.

This has been another amazing episode by an individual in the trenches doing it that’s giving real-time value and real-time feedback on what’s working in this market. Get over to iTunes or Spotify and read this episode over and over again and start to write down some of the gold nuggets that you’ve learned from this episode, but it won’t do anything for you unless you take massive imperfect action on those actions items that you write down.

Remember, this show is meant to help you, lead you, and guide you, but you have to take the step. You got to take action. Get out there, take action, let it lead you to a result, and let those results bring up your next question of what you need to do. Until next time, we’ll see you on the next episode. Take care.


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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.

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