Posted on: February 03, 2020

While there is no shortage of things that makes wholesaling phenomenal, one amazing thing stands out: if you operate from a place of wanting to serve and help others, deals will often find their way to you. This is something today’s rockstar rhino can definitely attest to.

Joel Kadlec is an exceptional wholesaler from Oklahoma. While he only wholesales on the side, Joel is still earning big money because he makes serving and helping distressed homeowners a priority.

Undoubtedly, this type of approach has been a game-changer for him. In fact, asking homeowners how he can help and serve them has led to a deal that has made him $13,300 richer!

If you’d like to use the same approach Joel is using, you’d surely find today’s episode helpful. What’s even better is you’ll not only learn how he makes things work, you’ll also discover how he manages his time effectively and how he finds deals even if he only wholesales part-time!

Key Takeaways

  • How he balances wholesaling and having a full-time job
  • The system he has set up to manage the calls that come in
  • What prompted him to try wholesaling
  • Marketing channels he has chosen to work with
  • Why he recommends going out and seeing as many prospects as possible
  • How his first deal went and what’s unique about it
  • How much he earned from his first deal
  • One of the best lists to send mails to
  • A recent deal he did and how much he made from it
  • Where he invests his revenue from wholesaling
  • What his marketing bread and butter is
  • The quality of leads he gets from online marketing
  • His advice for those would like to give wholesaling a try

RESOURCES:

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Episode Transcription

Tom Krol:
All right guys. Today I have an amazing guest out of Oklahoma, Joel who just got started with the tribe about a year ago. It’s been almost a full year now. It was back in March and we’re almost up on March again and he is a great guy who has a full time W2 job, who started wholesaling. He’s done a lot of deals and we’re going to be focusing on two of the deals that he’s done. We’re also going to be focusing on what it’s like to do wholesaling with a full time job number one, and what it’s like to get started. So, if you’re listening and you’re just getting started and you have a full time job, this is going to be a great podcast. You guys know me, I’m going to put Joel’s feed in the fire. We’re going to hold his feet to the fire, I should say. We’re going to pick his brain and we are going to go through exactly what it takes so that you can listen and you can implement the instruction from him. So, let’s do it. Hey Joel, can you hear me okay?

Joel:
Yep, absolutely.

Tom Krol:
All right, it is good to hear your voice further and I am so excited to have you on the show. Thank you to do this. Thank you for being a Go-Giver. You’re ready for the hot seat?

Joel:
Absolutely. Let’s do it. It’s an honor and pleasure. Thank you.

Tom Krol:
Absolutely. It’s our pleasure to have been part of your journey here, so congratulations on all your success. You’re knocking it out of the park. You’re in Oklahoma, I think that’s awesome. My sister lives out in Oklahoma. I got to get out and visit you and her. So I’m going to make a point to do that, but let’s get started with you. Typically, I have guests kind of go through just a little bit of the beginning of their story, but with you, I really want to focus on this because you have a few things that are unique. You are a full time employee. You were when you got started, you still are now. Can you take us through a little bit of what it was like to be able to do wholesale deals?

Tom Krol:
I know we’re going to focus on some specific deals, but what is it like when you have a full time job specifically logistically when you are committed your time and energy and resources and attention to something else full time or part time and you can tell us more about that, but what does that like when you’re taking phone calls, or do your support calls get answered live, do they go to voicemail? How do you get back to them quickly? Are you waking up early, skipping lunch? Can you kind of deep dive what it’s like to get started as a wholesaler when you have a full time job?

Joel:
Yeah, absolutely. I mean, it definitely can be a little bit of a balancing act and I think I learned really quickly the importance of time management with having a W2 and trying to get wholesaling started for me as well. So, time management was a huge one right off the bat and just getting organized to be able to see how am I going to go ahead and implement this and do this while in a full time job. So for me, I am very blessed to have quite a bit of flexibility in my schedule as the manager in my position. So, I do have some opportunities to cut out for lunch and maybe skip lunch and get up early and stuff like that. But it’s just finding time in the mornings or in the evenings to be able to do stuff like that.

Joel:
And you mentioned phone calls. I do have a system set up, which is called CallRail. CallRail is basically just a service that can take phone calls and I can have voicemail set up into where I can check that later. So if I can’t get to it right away, the voicemail takes care of it and then I can follow up on that leave later.

Tom Krol:
Okay. So let’s get down to the nitty gritty then, you decide you want to go into real estate, how did you, by the way, just to make that decision and was that a year ago when you joined the tribe or was that before that and what made you choose wholesaling?

Joel:
Yeah, no, that’s a great question. Just to go back a little bit with that, back in about 2013 I actually went to a Robert Kiyosaki, Rich Dad Poor Dad conference with my dad when I got out of the military.

Tom Krol:
Thank you for your service. Very cool.

Joel:
Yeah, my pleasure. So, that sparked my interest and I never really got around to it, but when I moved from Denver to Oklahoma, I was like, this is the time I need to go ahead and jump into it. And honestly, six months after moving to Oklahoma, I bought a multifamily deal off of Redfin, and I got a master’s in landlording like you wouldn’t believe.

Tom Krol:
I got it. Okay.

Joel:
It was a tough and hard battle and then after that I started flipping houses and thought I’m going to be 10 to 20 flips a year, this is going to be great, I’ll be retired on the beach tomorrow, yeah, type of situation-

Tom Krol:
Sure.

Joel:
… And that was a hard as well. I did a flip in 2015, that was a massive, massive project. They HUD money, which is basically just a different type of financing to do flips. And it almost put me out of real estate to be honest, it was a really hard battle and I was-

Tom Krol:
You lost money on that deal?

Joel:
The only way I didn’t lose money by the grace of God is my wife is a realtor and she brought the buyer and the seller and was able to broker both sides of the deal.

Tom Krol:
Terrific. Okay, so you start off in property management rehabbing, you don’t like that, you found wholesaling… So it sounds like you’re married. I want to ask just for time management reasons and priority reasons, do you have any children?

Joel:
Yes, I have two girls, five and seven.

Tom Krol:
Beautiful. Okay, so you’re married wife, two children, five and seven, definitely an age where they need a lot of attention. So you have a full time job, you’re in management, first of all, let me ask you this question, what is your marketing channel that you chose to work with?

Joel:
So I followed Wholesaling Inc. I joined the tribe in March and I followed it to a T. so I did exactly as instructed and I did direct mail-

Tom Krol:
Awesome.

Joel:
… Riding on, pretty much doing internet marketing, but I still do some direct mail.

Tom Krol:
Okay, terrific. So, direct mail is your channel. Now one thing I know about direct mail is that when the sellers call, especially the hot leads, the ones who really want to sell quickly for a low price, they are really interested in getting a call back immediately. So, how the heck do you mitigate that with a full time job? Because I know it’s only a matter of moments once that call comes in, so what does that look like?

Joel:
Like I said, I am very blessed to have some flexibility with it so I can spare five minutes and call them back immediately. Set up a time, “Hey, after hours I can come look at it, make you an offer right away.” So I would agree, you got to be super, super fast on the phone.

Tom Krol:
So, let’s deep dive down a little. So, your marketing goes out, your direct mail, the phone calls come in. It sounds like pretty readily get back to them. Now, were you going out and seeing a lot of people? One thing I love what you said is you’d go out that night, which means, that speaks volumes to your success because getting to them quickly is so important but what did that look like, were you going out pretty much to see everybody who called or were you only going out to certain people when they hit the criteria or what did that look like?

Joel:
Yeah, so in the beginning I was going out to see everyone-

Tom Krol:
Awesome.

Joel:
… And honestly I would recommend doing that just because you can get invaluable experience from that. And it taught me a lot, even if it was a deal that, there’s no room in it. I just got used to talking to people, I got used to knowing how to talk about contracts and looking at properties. So I would definitely suggest that. Now I’m a little bit more on guard, my time a little more if I know there’s really no room in it, I tried to look for other strategies, but I would recommend going to each in the beginning just to get the experience.

Tom Krol:
I think that’s awesome guys. I think everyone should really pay attention there because when you first get started, and this is something we teach in the tribe, absolutely go out to every single property because you’re going to get that experience. Especially if you consider yourself to be introverted or you don’t like meeting with people or you don’t like speaking with people or meeting them, seek discomfort every day. I’m sure it was super uncomfortable to go out there for Joel every day to meet these people who really weren’t motivated to sell at a low price, but absolutely I would say critical to his success. Okay, so you go out there and you find these deals. I think that’s awesome, I mean you were able to do that with a full time job with direct mail because you were able to kind of get away. So very, very cool. Let’s talk about some of the deals that you’ve recently done. I know we’re going to be discussing, I think we have the HUD statements for two deals.

Joel:
Yeah, so there’s two deals that I want to talk about because they tie into each other and I think it’s pretty cool and unique. So the first deal, and it was my very first deal, I started in March with Wholesaling Inc. and I think I got that deal under contract 30 to 60 days later after getting my direct mail out. And it was my very first deal I’ve done wholesaling wise. This deal, I offered the person 37,500 for the property and they really were wanting 50 for it. That’s just something I wasn’t confident enough in my buyers list at that point and since I just got started, I told him I can’t do that. But what’s unique with this is they expressed the options of maybe listing it with the realtor or go ahead and fixing it up themselves because it was a really nice property and it didn’t need that much work.

Joel:
So I got back with them a couple of days later after they said no to my 35 and I said, listen, I’m not trying to be self-serving here, but my wife is a realtor. I can get you comps, just so you know what you’re looking at, how many days it’ll take you to sell it if you sold it like this or I’ve done flipping in the past before, if you want me to help you with rehab estimates, just to kind of get a general reference, I can even refer you to some contractors. If we can’t do a deal together, let me help you out in any way, no big deal, no skin off my back, I can help you move this with or without me. I’ll be a resource to you if you’d like that.

Tom Krol:
Got it. Okay. So essentially you go and meet with the homeowner, you make them an offer of 37 five and initially they reject it and then did they call you back in?

Joel:
Yeah. So after I offered helping out on the other side, she called me back a couple of hours later, which kind of floored me and so like, “We’re so appreciative that you’re being willing to help us and give us guidance in all these other areas, for that reason I think we’re just going to go ahead and go with you because it sounds like you really care and you can get us taken care of.” We locked it up for 37 five and I was able to wholesale it for 50.

Tom Krol:
So let’s back up a little bit. So you go and meet with the seller, what was their reason for selling quickly at a discount?

Joel:
Sure. So her daughter had just moved out of the house, she was living there and paying a little bit of rent to her mom and her daughter moved out. It was a little bit in disrepair of course and they just wanted to go ahead and sell it and not put a lot of energy into it.

Tom Krol:
Okay. So, the house had some damage and the daughter was moving out and… The daughter was living there or she was living with them?

Joel:
She had just moved out. I think she had just graduated college and moved. So now they just had this vacant property that they weren’t sure exactly what they want to do.

Tom Krol:
Oh, I get it. Okay. Okay, terrific. So empty nesters with a house that’s in disrepair, they decided they wanted to sell it quickly, where were they moving?

Joel:
They were actually staying in Tulsa where I’m from.

Tom Krol:
Got it. Okay. Okay. They do all this and then you go out to see them the first time, you offer 37 five and then they kind of reject your offer, but then you kind of are persistent and you’re following up and then they accepted your offer at 37 five?

Joel:
Yep.

Tom Krol:
Awesome. So you have the property under contract at 37 five and what happens at that point? Did one of your real estate investors with cash just… Did they buy it or did you buy it and then sell it or what was the deal with that?

Joel:
Yep. I had a cash buyer that was ready to go and took a couple of weeks and they bought it straight up cash, there are strong buyers.

Tom Krol:
Awesome. So, you actually in this case signed the contract?

Joel:
I did buy it and I had a buyer set up immediately ready to buy it, so I closed it on the same day.

Tom Krol:
Oh okay. So, so you bought the property and then you resold the property to a real estate investor with cash?

Joel:
Yes, that’s correct.

Tom Krol:
Easy peasy, lemon squeezy. Let me ask you this question, because a lot of people listening, they’re kind of saying, “That’s great…” Right Joel? “… But I don’t have $40,000 for the house and the closing costs and all of that.” Did you have the cash for that or did you borrow it or what did that look like?

Joel:
So I did not have the cash for that. What I did was instead of an assignment, it’s what’s called a double close. I got it under contract at 37 five and then I had a buyer directly ready to purchase it the same day, so I double closed at My Title Company, is what it’s called, and the end buyer pays for that.

Tom Krol:
Okay. So what you did was you borrowed the money from the buyer or did you use a transactional lender?

Joel:
In the state of Oklahoma, we don’t have to do that.

Tom Krol:
Okay. So essentially you had the property under contract, you closed on the property, and then you immediately resold the property.

Joel:
Exactly, yeah. I mean, there’s some minor fees in there, but yeah-

Tom Krol:
Well, that was my next question. So, it sounds like when you buy the property and then immediately resell it the next day or two or same day or whatever it was, what was your actual profit minus all the fees?

Joel:
It was about $50 less. The fees are very minimal.

Tom Krol:
Okay, so something around 12,000, around there?

Joel:
Yeah, sorry. Yeah, probably at 12,500.

Tom Krol:
12,500, that’s amazing, that’s pretty inexpensive. I’m a little bit more pricey than that for my closing fees, but that’s good for you. So good. All right. Well, terrific. Well, good. Okay, so awesome deal. And that was your first deal?

Joel:
There it is, the bell, that is why I’m here. That’s fine.

Tom Krol:
There you go. There’s your victory bell, man. That is fantastic. So, Joel, that was your first deal?

Joel:
Yep, very first deal out the gate.

Tom Krol:
That’s really great because that is higher than… And I will say this, since you are a student of Wholesaling Inc., I will say guys, for all the listeners out there, you can do and implement everything that we teach. And there are no guarantees that you’re going to have any success at all, but in my opinion, it’s worth the shot, it’s worth the chance because that was Joel’s first deal and it was 12,500. I mean, that’s amazing. So, that is definitely higher, I would say, than the average first deal. They’re usually much smaller until people kind of figured out what they’re doing. So awesome. That’s the first deal-

Joel:
Yeah.

Tom Krol:
… And you found that deal through direct mail?

Joel:
Through direct mail. Yes. Yep, absolutely.

Tom Krol:
All right. I love it, it’s easy peasy lemon squeezy. And just for anybody who’s listening, what list did that come from?

Joel:
Ooh, you got me there, I think it was tax delinquent.

Tom Krol:
Tax delinquent, one of the best lists. Okay, terrific. Well, good. Did you get that directly or did you get it from a vendor?

Joel:
I got that directly. Yep. I got that straight from my county assessor’s office.

Tom Krol:
I love it. All right, terrific. Well, good. So, there you go. Okay, second deal. Was this one of your early ones or is this more recent?

Joel:
Well, this is more recent. This was about six or seven months after my first deal. So, this just closed just a couple months ago or a month ago actually.

Tom Krol:
Okay.

Joel:
The reason I wanted to talk about these two deals, because they tie in together. About six or seven months later, the deal we talked about the first time that person called me and said, “Hey, it was such a great process. This was so easy. We really appreciate you helping us out. And it was smooth, you delivered on everything you said you were going to. I have a sister in the same area, the same neighborhood that’s also looking to sell her house. Would you mind helping her out as well?”

Tom Krol:
Awesome. So, that is absolutely amazing. And referrals, we get them all the time, I agree with you, they’re the best. When you produce a ton of happy customers, this is exactly what happens. So on this particular deal, this was a referral?

Joel:
Yep. This is referral from her sister.

Tom Krol:
I love it. All right, so first of all, because it sounds like it was the same exact process essentially, or did you buy this property and resell it or what was the game plan on this one?

Joel:
Yep, same exact process. We’ll sell this one as well. An interesting thing to note about this is the mortgage on this house for her sister was a little bit higher than I originally was comfortable with, but over the last six months getting to this deal, I really worked hard on my buyers list and got a lot more confidence in my buyers. So, if this second year we’re talking about now was my first deal, I probably wouldn’t have happened, but my buyer’s list is that much more built out that I was able to still facilitate this deal as well.

Tom Krol:
So you have real estate investors with cash that you know if you find a good deal or a good house, you can sell it quickly?

Joel:
Yes, yep.

Tom Krol:
I love it. Very cool. So you buy this property, you sell it quickly, what was the profit margin on this deal?

Joel:
This one was 13,300.

Tom Krol:
Whoa! 13,300 and so, that’s a tremendous amount of revenue. Where did you put all that revenue? Back into the business or? I know you said you’ve been doing internet leads, so I’m interested to find out more about that, but where did you put that revenue?

Joel:
Yeah, I just put it right back in-

Tom Krol:
Okay.

Joel:
… I’m recycling, I just recycled everything this year. I’m probably going to pay myself a little bit this next year, but for my first 10 months, I just put it all back in.

Tom Krol:
I love it. I’ll tell you one book you should definitely check out is called Profit First by Mike Michalowicz, it’s going to show you exactly how to handle the cash in your business. Game changer-

Joel:
Okay.

Tom Krol:
… Yeah, really, really good. Profit First Mike Michalowicz. Terrific. Okay. So, what I want to talk about now is I want to talk about a little bit about what you’re doing because you said you kind of transitioned from direct mail to get your first few deals and now you’re kind of on the internet. So, what does internet mean? Who are you using? How are you using it? Are you doing it yourself? Do you have a service? Is it producing a lot of good leads? How are they different from direct mail? Can you kind of walk us through a little bit of that?

Joel:
Yeah, absolutely. So direct mail has been great, I did some cold calling as well. That was really good. This year I really tested a lot of different marketing channels and I really found something that met my personality a little bit more. And also my time just because I do have a W2 job and I found that doing PPC, which is pay-per-click, like Google Ads was really my bread and butter. I’ve just launched this to be honest, goodness, in December, so it’s only been going for about a month, but it’s really producing pretty phenomenally, so I’m very happy with it.

Tom Krol:
Are you doing it yourself or are you using a service?

Joel:
I did an AdWords Nerds mini bootcamp to kind of just get myself freshened up, but I’m doing a hundred percent myself.

Tom Krol:
Really interesting. Okay, so we’re going to put a link to that training course that you got, so that’s called AdWords Nerds?

Joel:
Yeah, AdWords Nerds, search click bootcamp.

Tom Krol:
I know that name. Who runs AdWords Nerds?

Joel:
Dan Barrett.

Tom Krol:
Dan, of course. I know Dan Barrett very well. I can’t believe I… It’s because I know AdWords Nerds from Dan Barrett, so I know Dan Barrett very well. He’s a good friend and I highly recommend his service and we will definitely put a special link in this show that we’ll get any listeners the best possible deal for any of our listeners who want to take that bootcamp. Okay, so you do it yourself and are the leads that come in any different from direct mail?

Joel:
I think there are a little bit more targeted and when they’re coming in they’re usually pretty strong. And we talked about speed and how fast you need to get back to somebody before, earlier in the podcast and I think with internet you have to be that much faster. If a lead comes in, you got to jump on it immediately, because they’re usually filling out forms on multiple websites so you’ve got to be the first there.

Tom Krol:
I totally agree. And if you guys just caught the very tail end of what Joel said, he said you got to be the first one there. There’s a lot of people who say, if you have other wholesalers or other real estate investors in a deal, you kind of want to do this tactic or that tactic, but I agree when you have multiple people in deal, the best strategy is to get there first. We now know for sure, we’re looking at different data points on this, but we now know for sure that is the best strategy. Not waiting til not being the last guy in. You want to get in there early, you want to build a ton of rapport and put the deal under contract for sure. So Joel, that’s amazing brother, that’s easy peasy lemon squeezy. So we are going to put those links.

Tom Krol:
I’ll put the link to Profit First also in there, AdWords Nerds for Dan Barrett, my good buddy. That’s amazing. In Oklahoma, you’re crushing, I’m going to be pretty close to you here in a bit, I’m going to be in Kansas City. I feel like taking a long drive from Oklahoma come and visit me-

Joel:
Absolutely.

Tom Krol:
… Let’s spend some time together. That’d be good. Well, awesome. Well, let me ask you this, anything before I let you go that you would say if anybody who’s just starting out, especially those guys and girls out there who have a full time job, a nine to five, any advice, resources, books, strategies that you can share with other listeners who want to get started also?

Joel:
Yeah, I mean the one thing that I just wanted to highlight and the reason I talked about these two deals specifically, there are deals that I made more on as far as profit, but the deal number one came through, originally it was a no, but then I said, how can I help you and how can I serve you if it’s not with me, how can I help you get this property move with or without if I’m making any money on it and that turned into a $12,000 deal and a referral for $13,000 deal. So, zero went from 26,000 just because I was… Really what wholesaling is about is helping the homeowner out of their situation and that was a game changer for me and I just want to approach my business like that and everybody I do interactions with like that as well.

Tom Krol:
I absolutely agree guys. When you go in there and you build rapport and you just try to help, I think it’s interesting the word help, I think what a good word is you want to try to find out what the problem is and I think it’s important to know whether or not you can help. And I think that’s the key to being a deal finder, not a deal creator, is that when you are bold and confident and you really try to deep dive this and you find out, hey, can I actually help, I need a low price but I can do this quickly and I can do this conveniently but I need to give a low price. When you go in there with that attitude, you find out really quickly if you can help or if you can’t, and I think that’s really the key to the game.

Tom Krol:
So, instead of wasting a lot of time with somebody, you just kind of get right to the meat and potatoes. So Joel, yeah, great reminder there brothers, so I hope all our listeners take that to heart and I hope you’re going to be back on again soon to give us some more updates from Oklahoma because it sounds like you’re crushing it out there as a real estate investor man.

Joel:
Absolutely, I would love to.

Tom Krol:
All right, sounds good guys. So, that was Joel. Joel, I’m going to head off to Kansas City, so I will see you soon, hopefully and I’m looking forward to meeting you in person again, brother.

Joel:
All right, thanks Tom. Appreciate it.

Tom Krol:
All right, we’ll talk to you soon.

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