Posted on: March 13, 2020
WI 383 | First Deal

 

The first wholesaling deal of today’s hardworking rhino didn’t come easy. For starters, it took him 10 months before he found it. Not only that, he had to employ different strategies before he was able to finally close it. Bottom line? Finding and closing his first deal has been challenging. Was it worth all the trouble? Definitely! In fact, he netted $14,000 just from that one deal alone! Brendan Harvey is an ingenious new rhino from Brooksville, Florida. While he already had a job that paid well, he knew wholesaling can give him so much more in terms of revenue.

So after wholesaling part-time for a few months, Brendan decided to venture into it full-time and the rest they say is history. If you’re new to wholesaling or if you’ve been wholesaling for some time but have yet to find your first deal, today’s episode is for you. You’ll not only learn several effective techniques, you can also find a few action items that can help you find and close that first ever deal!

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 – The Crucial Thing You Need To Know To Get Your First Deal With Brendan Harvey

Episode Transcription

I’m super excited to be with you, folks. Let’s get going and rock and roll. For those of you that are new to the show, first and foremost, I want to say welcome to the number one wholesaling real estate show in the nation. We call ourselves Rhino Nation, all the audience here, so thank you for joining us. We will be talking about wholesaling, which is simply the art of finding deeply discounted properties that you can then turn for huge profits.

The main thing you can do on this show is because this show won’t do anything for you unless you start learning to take massive, imperfect action. While you read this, I want you to do something. I want you to get out a pen, a piece of paper or maybe your computer to write down notes, however you take notes but I want you to write down one action item that you learned from this show. Get out there and start taking massive imperfect action. Don’t go research anymore and what the action you write down. Don’t go to YouTube University and get stuck there. Get out and take action.

In this episode, we are going to be breaking down a wholesale deal. We have a rock star Rhino that did their first deal. His name is Brendan Harvey. He’s from Brooksville, Florida. He’s going to share some stories about how it has been for him. He’s going to get real and vulnerable with you. Let’s rock and roll and get Mr. Brendan Harvey live with us. How are you doing?

Good, Cody. How are you doing?

Good. Tell me, where’s Brooksville, Florida?

Brooksville is about 40 miles North of Tampa.

With wholesaling, you have been doing it for, let’s call it, a few months. You came across your first deal. What got you involved first and foremost? The audience always likes to know, what were you doing beforehand? What made you think you wanted to get involved in wholesaling?

I come from a construction background. I have worked in construction since I was eighteen years old, industrial construction. I had a great job. I worked my way up the ladder. I was making $100,000 a year before this. I come from a family of 9:00 to 5:00 hard-working people. I’m the first entrepreneur, so that’s pretty much where I come from as far as a career.

Let’s talk about this. Let’s start breaking this down and give them a real look. When you’ve got involved in wholesaling, you decided to make the choice to jump in, in February. Has it been something that you did full-time ran out of the gates or is it something that you did part-time?

I had a full-time job. When I started out in wholesaling, I was working about 70 hours a week. It was tough. I remember I would be out in the field working and trying to listen to the weekly calls we would have and try to get involved with those. I got switched to the night shift. I worked through a hard-for-one deal. I lost it, and that made me back away for a little bit. I blew my marketing budget. I was pretty down and out about it. I pretty much felt like I had quit for two months.

Let’s dig into this a little bit. This will resonate with so many people to let them know that when you get involved in anything new, wholesaling, rentals, fix and flip, whatever is, a new Amazon dropship business. Entrepreneurship is tough. It’s not easy, so I don’t want to paint this unicorns and rainbows story that, “You are going to get involved in wholesaling, and everyone is going to succeed. It’s going to be amazing.” Can you? Yes. Are there ways to make it your biggest chance possible succeeding? Yes. Tell us what that looked like. You said you almost gave up. For how long did you pull away and say, “I can’t do this anymore?”

Conquer what you’re afraid of even if it means you have to talk to people.

It was probably for about 3 or 4 months. I pretty much didn’t do anything. I did think about it every single day. I was like, “What am I doing? I had a plan. I need to get back to it.” What happened was I had a lot of fear. I was scared. I got to where when I was calling back people from mailers. I would listen to the voicemail. If it didn’t sound like a good lead, I wouldn’t call them because I was that scared.

I know from my own business and talking with many individuals across the nation that in your mind, are you knowing, “Crap. I could have let go a lot of deals on the ones that I didn’t even call back,” because sometimes, you don’t even know the motivation until you start calling them. Do you feel like, “Now, looking back, I bet you I lost out on some deals?”

I’m sure I did. Even when I hopped back in it, I tried to recover the deals and the program I was using, CallRail. They had lost. They had like a blackout for that period. I couldn’t even get the info back but I got back into it. I get some motivation.

Let’s say you are at this moment. Your budget is gone from marketing dollars. You’ve quit for 3 to 4 months. What got you back? At that point, sometimes it’s easier to keep going down that road. This would be beneficial for everyone reading this. In fact, even I, Tom, Brent Daniels, and everyone have moments of doubt, fear, quitting and saying, “I’m done.” The difference between the good and the great. Don’t give up. What gave you the motivation after quitting for 3 to 4 months to say, “I got to get back in?”

I would think about it every day. That’s something I thought about it. I’m like, “I don’t have a marketing budget anymore. How can I get back into this and follow through?” I was like, “I have to conquer what am I most scared of.” That was talking to people. I didn’t have a marketing budget. I’m like, “How can I do this?” I jumped back in and started cold calling to conquer my fear of talking to people. I didn’t have a budget to market. I already had all the lists pulled from previous. I skipped traced them and started cold calling. It was scary but once I realized it wasn’t that bad, I continued on with that.

Let’s start breaking this down. We are known for the no fluff. No BS zone. Now, Let’s break down this deal that you did. Let’s help our audience understand what it is that they can learn and take away from your deal that will allow them to get one step closer to their first deal. Let’s go with it. Are you ready for this?

Yes, sir. Let’s do it.

Here’s where I will start. Where did you find this lead? What list was it coming from? What was your marketing channel that you were using to get to these individuals?

This was a high equity absentee owner list, and it was a cold call.

WI 383 | First Deal

Where did you get the list from?

ListSource.

The beautiful thing for the members of the tribe that are reading is the biggest discount that ever exists with ListSource, which we have. Members of the tribe get that at a very small 97% off discount with ListSource. You went out there. You get this list, and then how did you market to them?

I would cold-call each individual on the list. This one, in particular, was a follow-up call. They didn’t answer the first time. Once I followed up with them, it wasn’t even the owner of the house. It was her husband, and he pretty much acted like they had no interest in selling. I said, “How about you give me your email, and I will shoot you an offer anyway. If you are interested, you can email me back.” He gave me his email.

It happened to be the wrong email, so I had to call him back the next day and say, “This email isn’t going through.” I sent it to him. I sent him an offer at 60% of the Zillow price. He wrote me back and said, “Me and my wife may be interested in this offer if you could come up to a few thousand.” I looked at it. I ran the numbers. I told them, “I would like to see the property but if you can lock it up at this price, we can go ahead and lock it up.”

All of this is taking place by simply a cold call that didn’t answer. You cold call them again, they answer. I love that you are sharing this story because we have all heard this story. There might be many on this show reading, “I’ve heard that story before where they are not interested. I didn’t think about sending them an offer because they said they are not interested.” The fact that he gave you an email is interesting enough to say, “I’m not interested but email me over an offer.” You are not going to give your email to someone if there’s not some motivation there.

You end up getting his email address that already starts to let you know, “Maybe there is something here,” even though he said, “There’s nothing here.” You did something simple. This is crucial. The number one question I get from anyone at any given time is, “I don’t know. I’m doing comps. I’m doing this and that. I’m making sure I’m doing the right offer. I looked at it and pulled this. Now, I don’t know what to offer.” They start to overcomplicate it.

You did something so simple that I want each of you to write it down. This may be different in every market but the fact of the matter is you did a simple process, 60% of Zillow, and sent out an offer. You can’t get any simpler than this. That is the simplest way not to overthink it, not over-complicated, get an offer in front of them and gets you a response back saying, “Come up a little bit, and we might be able to do something with this.” Let’s keep going. I want to make sure I point out some incredible, simple steps that anyone reading can do.

Just forget about the fear and just do it.

That’s what it was. I wanted to take action. I knew I had to get it locked up and would learn from my cash buyers basically if I had made a mistake but it looked like a good deal. This is where the story turns a little bit. I sent it out to all my cash buyers, email blast, and set up an inspection date and time. I get nothing. Nobody shows any interest. I’m like, “What the heck?”

What are the feelings going through your mind at this time? Are you thinking, “Crap, I’ve done this at too high of a price or I don’t have enough cash buyers on my list?” What was going through your head?

I have already had to cancel a contract before this. I was terrified that it was going to happen again. What I do is I go through and see the open rate. I keep looking through cash buyers that I know I have met personally that have told me they would be interested in specifically something like this. I see that they haven’t even opened my email. I start calling each one of them. If they don’t answer, I send them a text with the information.

Hold it right here. We are still going to mark now another thing. Reader, Rhino Nation, write this down. This is crucial what he’s saying. I don’t want to go too fast over this. This is gold that he’s sharing. Go through. I’m assuming you are using the mail service, maybe MailChimp. You are looking through it. You notice that X amount of people haven’t even opened up their email, and you didn’t take, “They are not reaching back to me, so there’s no deal. I better cancel. I better walk away.” You are taking this a step further and saying, “No, there’s a lot of people that haven’t even opened up this email. I’m going to start calling these individuals one by one. I’m going to text them one by one to let them know, ‘Here’s a deal that I have. Are you interested?’” This is crucial. Brendan, keep going.

I get in contact with about twenty different cash buyers that have some interest. I set up another inspection period, which wasn’t easy because there were tenants on the property. I had to set it up at 7:30 AM. I had to do an inspection the following day to get people in there. I’m like, “Some people aren’t going to show up but let’s try it out.” I ended up having about ten cash buyers show up, and all wanted it. You could tell they were whispering, grinning, and fighting over pretty much. I ended up getting about four offers at the end of that day.

Let’s talk with what you put under contract for. What did you put the home under contract for?

It’s $110,000.

You get ten cash buyers out there. They are like, “This is a great little deal. I would love to make an offer.” Four people make an offer. What does that end up looking like? What was your highest offer for that particular property?

WI 383 | First Deal

First Deal: Take action. Learn from your cash buyers.

 

I sent it out for $117,000 because I didn’t get any bites for the first time. I lowered it a little bit from $120,000 to $117,000. That’s what everyone had in mind when they came out to the property. At the end of the inspection day, my highest offer was $124,000.

I’m writing this note so I don’t forget a point here. You did a $14,000 assignment on this deal, is that correct?

That’s right.

Brendan, before I point out this tip that you shared that is gold, I am going to do something that you know is coming, and it’s coming for you, so you hold on.

I have been waiting on that.

You have been waiting months on this victory bell. I want to point out something crucial. First, this is amazing. You’ve done things on your first deal that probably many don’t even learn to do until they are like 5th, 6th, 10th deal, 15th deal, 20th deal. Some people don’t even learn, ever, what you shared. That is, you had zero interest at $120,000.

No one showed interest. Lowered it down to $117,000, had some people now interested, then ten people come out to the property. Here’s the interesting thing. It ends up assigning for more than what his first initial asking was. It ends up selling for $4,000 higher than what he was initially asking, which is $120,000. He sells it for $124,000.

Here’s something you have to learn from this experience. From email, it’s hard to get people interested. You’ve got to send it out at a price that makes them get to the property. This is a true learning moment for anyone reading. Mark your price at a price that gets people to the property. Let the property sell the deal. Not you through an email. You have to make it exciting enough to get people to show up to the inspection.

The sky is the limit in the real estate industry.

If you can get people to show up, get ready. That’s when the sky is the limit on the price, and it ended up going for more than what he was asking in the initial email of $120,000. Why? It’s because they got to the property. That is incredible knowledge, whether you knew you did that or not. That is incredible knowledge that you shared for our audience. $14,000, what does this do for your spirit? What does it do to your motivation, your drive, and your determination going forward now that you’ve done your first deal?

It’s like you all say on the show all the time. It’s real now.

From faith to fact.

I was able to quit my job. I made a commitment that if I got a deal over $10,000, I was going to quit. I quit poking the bear and dive in. That’s what I have been doing. I get to spend a lot more time with my family. I’ve got a lot more in the pipeline. It has been amazing.

You’ve got a pipeline but the goal is when you close on that deal that you closed on. You put some money back into marketing, double down, and start getting this going, especially now that you have this going full-time. Here’s what I want to do. In ending our show, we always ask two questions. I know you are aware of them. I’m going to ask you the first one. What is a good book that you’ve read or over the last months since you have been in the tribe that’s been game-changing with your mindset or helped you improve who you are?

Mindset on seeing the difference between everyone who is rat race compared to people who do want to be an entrepreneur and make some real money and have some real-time. I would say CASHFLOW Quadrant from Robert Kiyosaki. A good book.

Phenomenal book. What’s the one gold nugget that you could share that would say why you liked that book so much?

It takes the perspective from being a 9:00 to 5:00 worker to being a small business owner to being an investor then working at a 10,000-foot level instead of working on your business instead of in your business. That’s what I liked about that book.

WI 383 | First Deal

First Deal: See the difference between everyone who’s just in the rat race compared to people who do want to be an entrepreneur so you can make some real money and have some real time.

 

Working from the left side of the quadrant over to the right side. That’s a great book. We have interviewed Kiyosaki here on this show. We put that same interview on the YouTube channel but amazing information in that book. I also would recommend CASHFLOW Quadrant. The second question, Brendan, is knowing what you know now, looking back, what would you have done differently?

I would have done what you and Tom told me to do. That’s what it was. Forget about that fear and do it, and it works.

Do you feel like you were your biggest obstacle and that it was you that was in your way? It wasn’t your marketing, a competition, and anything other than you were in your own way.

Yes, I was in my own way.

Brendan, I want to thank you so much for being on this show. You shared some golden tips in here that everyone can take away. I hope they did because that’s the power of this show. This show will not do anything for you. It’s not a silver bullet. What’s the silver bullet is what you listen to is acting on it and take the action. Imperfect action, for that matter, and let it lead you to a result that will then lead you to your next question of what you need to figure out. Many times, we try to build a perfect plan, and it doesn’t exist. How perfect was your plan to be an actual reality?

It’s about being imperfect. A little golden nugget for new readers that are thinking about getting into wholesaling, in my opinion, you learn in school about gateway drugs. Wholesaling is the gateway drug into real estate. If you start wholesaling and you can find deals, you can do anything in real estate you want to do rather than be fix and flip, buy and hold. It doesn’t matter.

It all starts with a discounted property. I 100% agree. Keep going.

If you learn how to find a deeply discounted property, then you can do anything you want, build capital. The sky is the limit in real estate.

WI 383 | First Deal

First Deal: Wholesaling is the gateway drug into real estate. If you start wholesaling, you can find deals. You can do anything in real estate you want to do.

 

Brendan, thank you so much for being on this show. I know you are busy. As we are speaking and recording this, it’s the day before Thanksgiving, so I know there are busy times coming up with this holiday but thank you so much for being on here, sharing some wisdom, and helping our audience know how they can get one step closer to their first deal.

Not a problem, Cody. Thank you for having me on here.

Rhino Nation, what an incredible individual, Brendan Harvey, who shared step-by-step how he did his first deal and, because of that, was able to share some golden nuggets that will help each one of you get one step closer to your first deal or even your next deal. Get out there, take massive imperfect action and act upon the things that you learn. Get out of your own way. You got to get over your fears. He had these real fears but then he realized they were fake. They were nothing. He had to get overcome them. He had to get out of his own way to go find his deal.

Let this story sink deep with all of us to get out there and take massive imperfect action so we can go out there and get our first deal, our next deal. If you want help, as Brendan did, help build your wholesaling business. Head on over to WholesalingInc.com, fill out an app and get on the phone with either myself or someone on my team so we can begin to have the conversation to see if it’s a good fit. I will see each one of you on the next episode. Take care.

 

Important Links

 

About Cody Hofhine

WI 383 | First DealCody 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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