Posted on: March 06, 2020
WI 378 | First Deal

 

If you’re new to wholesaling, be prepared to encounter people who’ll tell you how difficult it can be or that it can’t be done. However, if you’re like today’s rockstar guest, you can easily prove the naysayers wrong!

Nick Jackson is a 25-year-old Chemistry teacher from Lafayette, Indiana. While he has a knack for interacting with people, he does not know a single thing about real estate or wholesaling when he first started.

Fortunately, Nick didn’t let his lack of knowledge or experience deter him from giving wholesaling a try. And his boldness paid off big time—he was able to close his first deal 2 months in and netted $3,000 for his efforts!

Let’s get things straight: finding a wholesale deal (especially your first one) is no easy feat. However, if you’re as tenacious and driven as Nick, it will only be a matter of time until you close your first ever deal or your nth one!
 

MARCH CONTEST ANNOUNCEMENT!

For the entire month of March, Wholesaling Inc is running a Ratings and Review contest! We’re going to fly out 3 lucky winners to Florida, paying for airfare and hotel, to spend to full days with Tom Krol!

Whether you are trying to land your first deal or scale your existing Wholesaling business, Tom is going to help you crush your obstacles and achieve your goals!

And the lucky winners will all be featured as guests on the Wholesaling Inc Podcast!

To enter, you must Rate and Review the Wholesaling Inc Podcast on iTunes (5 stars please:) and send a screenshot of the Review to Darrin at darrin@wholesalinginc.com.

3 winners will be chosen at random and announced on the Podcast in April! Good luck!

First Deal Review – Why Everyone Should Be Wholesaling With Nick Jackson

Episode Transcription

I’m super excited to be here with you that you joined us and read this blog. We get so many incredible reviews. We get incredible text messages to all of our different social media accounts. We get emails about how you’re out there doing deals, and that excites us. We’re excited for you. Keep getting out there and taking massive imperfect action.

For those of you who might be readers for the first time, we’re going to be talking about wholesaling and how wholesaling can get you into real estate. What does that look like? What does it sound like? What’s nice is so many times, we have this fake belief that we have to have a ton of money to get into real estate or have a ton of time.

Each one of these episodes is to help you understand a little bit more about wholesaling. That is something that anyone can get into if it sounds like something you want to do. Wholesaling is simply the art of finding deeply discounted properties. We’re going to be breaking down a deal review, going over how an individual did their first deal. We’ll be going through this step-by-step. What I want from each one of you is to get a piece of paper and a pen and get ready to jot down some notes and action items of what you can do to get one step closer to doing your first deal.

In this episode, we have Nick Jackson. He’s from Lafayette, Indiana. Even though there is one in Louisiana, this is Indiana. He’s been in the tribe now for a couple of months. He is going to share step-by-step how he closed on his first deal. Get ready. Let’s bring on Mr. Nick Jackson. Nick, how in the heck are you?

I am great, Cody. Thanks for having me.

I’m excited because this is good stuff. It’s always fun to go back to the beginning and know the reality, the stories behind what has wholesaling been to you, and what have been the highs and the lows. Many times, maybe a message goes across of, “I did a deal. I made all this money.” We forget to tell that some struggles, trials, and challenges came with that. Let’s break down for our audience the reality of what wholesaling took place for you to be able to go out and get your first deal and what took place to make all this happen. Tell us a little bit about yourself and what got you into wholesaling to start us off.

I am a high school Chemistry teacher. I’ve been teaching for about a few years. I was on summer break. I was on Facebook, and I saw the number one side income of 2019. I was like, “Ah.” I decided to click on it. It wasn’t Wholesaling Inc saying this. it was somebody else. They said, “You can get into real estate with zero money.”

I was like, “That’s great because I have zero money.” I said, “This is probably a scam. There’s no way.” I looked it up a little bit online, and I was like, “It looks like a lot of people are doing this.” I went to the Podcast App, and I said, “I wonder if there are any podcasts that I can listen to on the way to work or something.” I found Wholesaling Inc. I clicked on it. I went to Episode 1 and started reading. A couple of days later, I called up and joined the tribe. It did not take too long.

WI 378 | First Deal

First Deal: Keep going and build your buyer’s list.

 

That was a quick process for you. I feel I’m almost like a proud father. I’m like, “I love this. I love knowing this.” What was it that made you get that excited? There’s got to be something that pushed you that said, “This could be me. I could do this.”

The number one thing was Tom Krol kept saying, “It’s not very much about real estate. It’s about building relationships with people and getting to know the seller.” It’s stuff like that. I was thinking like, “I’m a teacher. I do that all the time. That’s something I could do or get into doing.” I read 2 or 3 stories. I told my wife, “If I read one more success story, I am going to crack.” Every person on here is doing awesome. I was reading the one where you were doing it. You said, “Are you ready to stop learning and start earning?” I paused it. I said, “Yes.”

Let’s break it down. I don’t want a false reality for setting up for our readers. Maybe I’ll ask the real easy question. Was this the easiest thing in the world that you’ve ever done? Not at all. I want to put that out there that this success or doing your first deal is not a guarantee. However, there is step-by-step that if you’re willing to put forth the work. It doesn’t mean you’re not going to face struggles, trials, and challenges. Did you face any hiccups? Did you face any struggles while you were going through this to do your first deal?

Yes.

What were some of them? What were some of those struggles?

Number one was building up my cash buyer’s list. For some reason, whenever I got the list of the cash sales. It was very hard for me to get on the phone. I don’t know if that’s a typical response, but I would get all this anxiety before I get on the phone. I’m like, “I don’t want to call them. They don’t know me. What am I going to say?” even though you tell me what to say.

It was hard for me to get started. Once you get started, if you call ten people in a row and you’re told, “No,” you’re thinking, “I bought into this. It doesn’t work,” you keep going. After being told no many times, you eventually get told yes, and you’re like, “Maybe it does work.” You call another one, and you get told yes. You pick up some traction there.

One of the things early in the game goes right hand in hand with this story. I remember the same stages. At the very beginning, I was thinking, “If I get told no,” and not only no. Some people were ruthless and told me to do things that were physically impossible. It was crazy some of the things people would say because they received a mail piece from me. I remember thinking, “Am I going to do this every single day?”

It’s not really about real estate as much as building relationships with people.

I remember Tom. He’s like, “You’re one step closer. That next call could be $1,000, $10,000, or $20,000. You don’t know, but you’re one phone call closer to the call that says yes.” I keep pushing until, all of a sudden, you get that yes. You’re like, “Wait a second.” It starts this whole new energy. You forget about all those noes and nasty things people tell you. You start moving forward. Tell us a little bit about this. You face some of these early on struggles. You get a lot of noes. You’re trying to build a cash buyer’s list. Is there anything before we moved on that you’d want to add that were some of the real struggles you faced?

In the tribe, we’re encouraged to go to a local real estate meetup to meet some investors there and maybe even find some buyers and network a little bit. I went to one. There were about fifteen people there, and they started off saying, “Tell us your name and what area of real estate you are interested in.” I said, “My name’s Nick Jackson. I’m interested in wholesaling real estate.” They go around.

Four people almost started ganging up on me saying, “What you’re doing is very difficult. It’s almost impossible in this county to find deals. I look on the MLS and Zillow all the time, and we don’t find anything. All the houses are listed. I would focus on a different area of real estate.” It was day two. I was like, “Oh.” It was hard. I sat there for the rest of the time. As I left, I smiled a little bit. I was like, “This might be good news because if they’re not focusing on it, maybe I can and get an opportunity they don’t believe is there.”

This is crucial. I’m hearing something that probably takes most thought leaders and entrepreneurs a long time to develop. You get these naysayers. They’ll come out of the woodworks. They’ll come from every direction and angle. They’ll come out and tell you, “It can’t be done. You’re crazy. Think of something else. Think of a different approach because wholesaling is dead. It’s not going to work, especially the way you’re doing it by direct mail. This is crazy.”

They start coming out of the woodworks and start attacking you. Most, when their first shot at entrepreneurship, will tend to go back to what was comfortable for them and go back to doing what they’ve always done and getting what they’ve always gotten. It’s the fact that you didn’t let these naysayers attack to ruin your mindset and to think in a different way.

You didn’t say, “I was hoping this can be something great.” You thought, “If they don’t like this, that means maybe there’s a whole new opportunity for me. They’re not focusing on it, so I’m going to focus on it.” This is something that everyone on this show should start writing down. When someone comes to you with trouble or problems, that means they weren’t willing to work hard enough to go see it through, which also means more opportunity for you. Keep going. I love this, Nick.

After that, I kept going and building up my buyer’s list. When I finally built it up, I decided that I wanted to go direct mail. I got the list together. I sent it to the postcard company. They sent it back. Before I sent out the mail, I told my wife, “I’m scared.” It was the night before the mail was going to be sent out. She said, “You’re scared that people won’t call?” I said, “I’m scared that people will call.”

I was scared because it was something so new. They’re calling you and asking you all these questions, and I’m not an expert by any means. I’ve never worked in real estate. It’s the fear of the unknown. You put this money into direct mail. You’re sending it out every week. You’re investing your money into it. It’s scary to answer the phone and answer questions and go on appointments when you’ve never done it before.

WI 378 | First Deal

First Deal: If you’re not embarrassed with your first offer, it’s not low enough.

 

Full circle, this should give everyone reading the understanding that this has nothing to do with real estate. It has all to do with what Nick mentioned when he read from the episode where Tom says, “This is not about real estate. It’s about building relationships.” Here, we have a living story in front of us saying, “I’ve never done real estate. I was scared to death. I didn’t know what I was going to say. I’ve never worked in the real estate space. I don’t even know what a deal is, what is not, or what it is. What is a bad home, a good home?” He came to this with no knowledge. One thing I bet you are good at being a teacher and having to work with students all day is those relationships. Would I be wrong guessing that?

No, it has taken a while to build that skill, but it’s something that I enjoy working with people and trying to find a solution for them. Building rapport is something that I enjoy. I wouldn’t consider myself the biggest people person, but I love talking with people. I wouldn’t call myself an extrovert by any means. I’m fairly introverted, but I like talking with people and building relationships. I felt fairly comfortable as far as that was concerned. That was maybe my one strength if I even had one before I started.

Let’s go and move forward now. Let’s break this down. Let’s talk about what marketing channel did you use to find this deal.

I used direct mail.

For those out there reading, you’re like, “What marketing channel?” There are so many ways you can do this. One thing that we focus on is one channel at a time. It’s like a sniper, doing one bullet at a time, then moving on to your next marketing channel when you are ready for that next marketing channel. You started here with direct mail, which is one that we love and still continue to use throughout this nation in the tribe. Who were you mailing to? What list?

I mailed it to the high equity list and the absentee owner list. It’s the people who own a home that doesn’t live in it and the owner-occupied lists, which is the high equity list.

For those reading, that might be like, “I don’t know what that is.” Equity is the difference between what you owe and what it’s worth. High equity means you have a lot of it sitting in your home. There are ways to pull those lists for those who live in the home and have a ton of equity or absentee owners, those who may own a rental or a second home with a lot of equity in it. You’re mailing to this list and sending out mail. How much mail are you sending out?

It wasn’t very big. It was 2,500 people. I sent it out 500 at a time. It’s for five weeks.

You need to enjoy working with people and finding a solution for them.

With that, were you starting to receive phone calls off the hook? Was it 1%? What response rate were you getting?

I got a very large response. I don’t know why that would be, but I’m talking probably around 4%. It was nice, but it was also hard because when I would get home or at school during my prep hour, I would be getting calls. I was answering them, and I was like, “What am I doing? I don’t know if I can keep up with this,” but I kept trying and eventually landed a deal.

You get a phone call. About how far in from your mailing? Let’s say you’re on your first day of mailing. How many weeks into it before you got this phone call that led to a deal?

Believe it or not, this phone call was on day one.

Were you able to set up the appointment and know it was a deal right out of the gates? Was this something that took time?

It took a little bit of time. I got the call, and the guy kept saying, “What’s your offer on my house? Make me an offer.” I knew from the tribe I was like, “I can’t give my number first. I got to get him to give his number first.” He would not let up. I had 1 or 2 tricks up my sleeve to try to get him to give the offer. I used them both, and they did not work. He was stuck on, “Make me an offer.”

What did you do? Did you want to meet in person? Did you do this over the phone? What was your method?

What I should have done was meet in person but what I did was I looked it up on Zillow. I looked it up while I was on the phone with him and saw $83,000 on Zillow. I said, “Tell me a little bit about the inside of the house. How many bedrooms and bathrooms? Any repairs?” He said, “The inside is completely gutted.” I said, “Okay.” He said, “It’s gutted, but what’s your offer?” He kept on with, “What’s your offer?” I said, “I haven’t seen the property.” I was about to make my offer.

WI 378 | First Deal

First Deal: Many people are interested in anything at that price point because it’s just not very expensive.

 

I remember somebody said, “If you’re not embarrassed with your first offer, then it’s not low enough.” I said, “We’d probably be coming in in the neighborhood of $20,000 with that.” I don’t know why I said that. That’s what I said. He said, “I was only hoping to get about $13,000 or $14,000 off of it. That would be great.”

What did you do? He comes in lower than what you’re offering. Did you say, “It sounds like maybe it’s in worse condition than I thought?” What was your rebuttal on this?

I didn’t have one. I said, “I’m trying to estimate the best I can, which is not good.” I said, “I’d like to come out and see the property.” He said, “I’m busy for the next few days.” This was on Monday. He said, “I could come out there and meet you on Thursday.” I said, “I’ll see you Thursday at whatever time.” I went out there. I looked inside, and it was very bad.

It was completely gutted, but you could tell it had been abandoned for 5 or 10 years. They started the rehab on it, so they put a new roof on it. There was a new roof and new siding, but everything on the inside was left. It looked as if they had given up on it. I took a look around. I came out and said, “I had no idea how to estimate the repairs or anything of what it would cost.”

All I knew was that Zillow said $83,000. That’s all I knew. I said, “I could offer you 8,000 for it.” He said, “I was hoping to get $10,000.” I said, “There’s so much work to be done here.” He said, “I need $10,000 for it.” I said, “I’d be willing to come up to $9,000, but I can’t go up too much higher.” He said, “$9,500, and I’ll sell it to you.” At $9,500, I signed the contract with them right there.

Here you work on some negotiation skills. It’s something that’s all new to you, but you’re doing and working on it. You get it for $9,500. From there, when you start sending out, did you do a normal assignment for this one?

I assigned it.

How many investors? When you started letting your cash buyers’ list know about this, how many were interested? What did you market the contract for?

Trust the process. Don’t let anything hold you back.

I didn’t know what to market the contract for. I messaged Bill on the forum. I said, “What should I do?” He said, “Reach out to another Rhino in Indiana. He lives 3 or 4 hours from you. Maybe he could help you a little bit.” I called him and told him it was my first deal. I told him about the condition. He gave me a few tips. He said, “I would probably push this one out at $14,500 because the investors have a lot of work to do. It’s not that expensive of a property so I would push this one out of $14,500.” That’s what I did. I got a little advice.

Did you have people like, “I want to come to look at it?” How many people when you sent this out said, “I’m interested?”

There were quite a few because of that price point. A lot of people are interested in anything of that price point because it’s not very expensive. There were twenty people who came out.

That’s a good result. You have high response rates and incredible results. Twenty people come out and look at it. What happens from there?

Here’s where it takes a bit of a turn. The first guy that showed up looked around. He said, “Nick, I wouldn’t even take this place if you gave it to me.”

I got nineteen more yeses or noes.

A lot of people were telling me. They were like, “The ceiling in this neighborhood is $80,000.” The most expensive house in this neighborhood is $80,000. They’re like, “With all the work and after I list it with a realtor, I’m not interested.” They said, “If I was doing all the repairs myself, I could probably make money, but if I’m having my crew do this, I’m not interested in it.” They were telling me, “No.”

Nobody would even make me an offer. They wouldn’t say $3,000 or $4,000. They were saying, “Too much work. Not enough profit.” They were not into it, but there was one guy who said, “I am interested in this area, and I do all the repairs myself.” He ended up making me an offer of $12,500. That was my only offer, so I ended up taking it.

WI 378 | First DealIf I can do my math, you put under contract $9,500 and sold it to this investor at $12,500 for a total of $3,000. You know what’s coming. With only two months being into this, it is impressive. I know you’ve been waiting for this. I know people that it may take them 3 to 9 months because they may not have that much time. Two months into this, you do your first deal. What is it like now that you’ve done your first deal if you’re looking back and thinking about all your feelings beforehand now that you’ve done a deal? Is there a different way that you think about this?

The best thing is that I know the entire process now. I’ve made friends with the people at the title company. They know what I’m doing. I know a lot of investors now because of that showing that I had for it. They know my face. I ended up having one of the investor’s grandkids in class. That was nice. He knows me now. I know how the process works from start to finish. Now, I feel like I’m a lot more confident and that it works. Even though I know it works, but it works for me and my market. The sky’s the limit from here.

That is what’s huge. We hear it all the time, from faith to fact. Once you’ve done a deal, there’s a different level of confidence, commitment, execution, and how you’re going to do business moving forward. We usually see, once that first deal gets done, we start to see that snowball effect. It starts to help your business start to gain traction and start to do more deals consistently. I’m excited for your near future to see what this is going to turn out to be. I’m excited that you’ve been able to take some time now and share with us and those reading this blog what it took for you to get this first deal. Nick, I want to thank you for taking the time to do so.

Thanks so much for having me.

I don’t want to let you off the hook too easy yet, Nick. Here are two questions that we always ask. What is a book that you’ve read that’s been game-changing for you?

I know a lot of people probably say this, but I read this before. It was The Go-Giver. It changed my mindset on how to be successful, what you need to be aiming for when you’re successful, and rather than being a go-getter, you’re a go-giver. It helps your mindset. If anyone’s starting out, it’s a great book to start with to give you some perspective. I enjoyed that one.

The next one is looking at hindsight. What would you do differently if you were starting from ground zero again? Months ago, you were starting fresh. What would you do differently or have done the same?

I wouldn’t have let people’s opinions about what they think will work affect my actions so much. I have a lot of people at the meetup, people that I called on the phone that was saying, “You can’t do that. That’s not going to work.” It’s trusting the process and not letting anything hold me back. If you let enough people get in your head about that, you’re probably going to sit back and do nothing and say, “I’m pretty comfortable here. I don’t want to do this anymore. I don’t want to take the risk.” If you don’t take the risk of getting on the phone or sending out some mail, you’re never going to land your first deal.

It’s such good words of advice. 100%. Go out there and take the massive imperfect action. That’s what I’m hearing here. There are going to be a lot of naysayers that come in and try to cloud this. You’re saying you heard it all, but you still move forward. You still picked up that phone because, without it, it’s 100% guaranteed you’ll never do a deal.

Nick, thank you so much for being with us. It’s been an honor to learn this. There are going to be so many people this resonates with. There might even be teachers that are teaching in school now thinking, “Here we have a fellow teacher out there doing this.” It might be something you said in this show that makes them think, “I can get out there and do this.”

To that, to each one of you reading, I can say, you can do this. Is it easy? No. It’s going to push you. It’s going to test you. It’s going to try you. There are going to be things that are challenging, but it’s okay. That lets you know you’re doing it right. Those things that are worth it don’t come easy. It’s going to take effort and consistency. It is going to test and try you, but each one of you can do it.

I want to thank each one of you for reading this episode. I hope you have taken good notes. I hope you’ve written down some action items that you’re going to take because this show won’t do anything for you unless you take action. Reading it and feeling good won’t do anything for you. You’ve got to get out there and take massive imperfect action.

If you’d like our help in helping you build that successful wholesaling real estate business, head on over to www.WholesalingInc.com and book your call to begin that conversation to see if it would be a good fit. Until next time, get out there and take massive imperfect action. We’ll see you at the next show. Take care.

 

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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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