Once you have the deal under contract, you can already rest and celebrate, right? Wrong! If truth be told, you can still lose the deal if you don’t play your cards right. Fortunately, today’s guest shared an effective technique so you can see your deals through to completion.
Rondell Powell is a gracious rhino who has been wholesaling for almost 2 years now. Over the years, the doting father of 5 has mastered something that has helped his wholesaling business thrive—minimizing contract cancellations.
Contract cancellations can happen when you least expect them and can occur for various reasons. Thankfully, Rondell has devised an effective method to keep them to a minimum. If you want to set yourself up for a continuous win, this is one episode you shouldn’t miss!
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 two 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 email@example.com.
3 winners will be chosen at random and announced on the Podcast in April! Good luck!
How To Make Deals Happen With Rondell Powell
I’m super excited to be with you. I call you Rhino Nation. For those of you that are new, first and foremost, I want to welcome you to the show. Second of all, we are going to be talking about wholesaling. I don’t want this to be some confusing thing. Wholesaling is simply the art of finding deeply discounted properties because if you could simply find those off-market discounted properties consistently, you can make a lot of money in real estate.
We’re going to be sharing with you. I have a guest with us. He’s going to break it down step-by-step how they did a deal, how they’re able to get at a discount, and how they’re able to turn it into profit. If you’re looking to get into real estate and don’t have a lot of money and all the time in the world, but you’re like, “I want to get into real estate,” get ready. This episode is for you.
We are going to be breaking this down step-by-step for you. Get out a piece of paper and a pen, and start jotting down some notes because we have Rondel Powell. He’s from Cleveland, Ohio. He has been doing wholesaling for years. He’s going to bring some gold nuggets and wisdom here. He has done over sixteen deals. He’s going to share with you this deal that he did.
This is going to be something you’re going to want to read because there are many of us that might find a deal. You put it under contract, and throughout the time before closing, some of them cancel. He’s going to show you one strategy that makes sure that you never lose these contracts and you see them through all the way until the end. Rondel, how are you doing? He’s married and has five kids. How do you do all this with five kids?
Cody, thanks for having me on. I’ve been waiting to get on the show. It’s a great time. I love every bit of it. I’ve been a family man. I’m 1 of 10.
You have nine other siblings. Do your parents look at you and they’re like, “Step it up. You’re only half of where I was.”
Not at all. Everyone loves me, and I love everyone. Everything is great.
Tell me this. How are you able to be an incredible husband and father and do this real estate game called wholesaling? Do you do it full-time or part-time? What does that look like?
I was doing it part-time to start. I went full-time when I turned around and found out about this group called Wholesaling Inc. It helped give me the confidence to take that plunge and say, “I’m all in.” It has been a blessing. I’m extremely blessed. I can’t thank you enough.
You are an individual that came ready too. You are already doing this for about a year before we met. You were already doing this part-time, but you came in here with a mindset that prepped you for a lot of growth and success. This is something that I always want to make sure that we’re getting the message across as we talk. Help our readers to understand that it has very little to do with real estate.
It has more to do with listening to this guy. You can hear that he’s a family man. He’s a loving and caring individual. I truly believe that’s the reason why you win. I don’t believe it’s because you’re incredible at making comps on homes. I believe it’s because there’s something much more than that. You have these great characteristics about you that set you up to win. Correct me if I’m wrong on this.
You’re not wrong, and I will not correct you. Thank you so much. That’s something I hear more than anything. I’m a big guy of integrity. Integrity is such a big thing. Doing the right thing when no one is looking is a big thing for me. I turn around, and it is not only the knowledge that I’ve gained from the show and my endeavors with YouTube University.
Outside of that, that’s something that comes through in business. Who you are as a person is going to come through a business. If you’re a cheapskate or you like to try to beat around and get over on people, that’s going to come through. I’m very honest, genuine, and real. It comes through. Everyone sees that. They want to do business with me. I’m not forcing anyone to do business with me. That’s one of my biggest things. I’ll tell you more about that.
Wherever you’re at, talk about what you do. You never know where your leads will come from.
I want to make sure that we understand this. When we write down notes, so many times we think, “Tell me the marketing strategy. What did you market to? What was the list? What was the marketing piece? Tell me this.” We fail to realize sometimes that it’s more about who we’re becoming than it is about the marketing piece and marketing channel. It’s who we are becoming. You said something interesting, and that is people want to do business with you. There are people out there that maybe are not doing it with the right heart and purpose.
You may find 1 or 2 deals. You may do that, but if you want this to be a continual business that you can turn into something where you’re consistently finding these deals, it will not happen unless we start to adopt this same mindset that Rondel is going to be teaching us. That is a loving, caring, and passionate servant’s mindset. Have those characteristics and watch what happens to your business. You’re now setting yourself up for continual wins, consistently finding these deeply discounted properties and sellers that want to do business with you.
I love that we set the stage perfectly here but let’s go right to the meat and potatoes and to where we can break down the deal. I love where this is ultimately going to go because this is something that’s overlooked by so many wholesalers in the market. I’m excited for you to share these tips and strategies that will help every one of the readers understand how you can minimize contracts canceling on you from this one strategy. Let’s walk them through the whole thing from the beginning. How did you find this deal? How did you know it’s a motivated seller?
It was a referral.
What do the referrals look like? That’s a channel that a lot of people don’t look at. They don’t look at referral business. How did you get this referred to you?
It’s a little bit of a hoop, but we turned around. I’m training a new guy. He’s one of my good buddies. I’ve known him for years. He goes to the barbershop, and there is another guy with the deal. He refers the deal to me. I took over the deal because the other guy was very new and inexperienced. I took over the deal that way.
You said it’s from a barbershop. We need to start getting haircuts and business. This is good. What had you even talking about it? You’re at a barbershop. What made you start even talking about real estate when you’re at a barbershop?
I wasn’t there. My buddy was there. He’s the new guy that I’m training. He was there, and he was telling his barber that he’s into real estate. A guy was in the barbershop and said, “I am too.” The conversation grew up that way. He brought that to me.
The whole point here that anyone could write down is wherever you’re at, talk about what you do. Don’t let your direct mail piece do your marketing. It’s wherever you’re at, like if you’re in the grocery store. We have a cold caller. He lets his neighbor know. He’s at church one day. He’s like, “What do you do?” He’s like, “I cold call. We buy homes at a discount. The company I work for loves finding off-market properties. We buy distressed properties.” This neighbor that was in his church works at the bank.
He ends up going to the bank one day, and the bank is like, “We’re trying to clear the books a little bit. We’ve got to get rid of a couple of properties.” He’s like, “I have a neighbor that buys these properties.” We ended up getting a screaming deal from a bank because my cold caller opened his mouth. Readers, open your mouth. Here you are at a barbershop, or someone from your team is at a barbershop. It’s likewise. It wasn’t me that opened my mouth. My cold caller opened his mouth. Make sure you let people know what it is you do so that you can begin the conversation. You never know. Keep going.
From there, we set up a time to look at the house because he’s new. I need to verify the deal, see what’s going on with it, and turn around. I got there, and the guy wasn’t there yet. The seller was there by himself. I’m there. He walks up to my door like, “Are you here to look at the house?” I’m like, “We’re waiting on a couple of guys.” He was like, “I’m here now.” “Let’s go look.” The next thing I know, I’m talking to him and being myself. He opens up, “This guy has it at $20,000. You could get it way lower than that. I would go lower.” I’m like, “This is a dream.”
You’re getting Punk’D. You think you’re on Ashton Kutcher’s TV show.
I turn around, and we’re making rapport and steadily talking. I take a look. I’m done looking at the house. We go back outside, and then we’re talking some more. He’s telling me he wants to get into trucking. He has this great position set up. He has a CDL. He wants to do all these great things. He needed to move house because he was on a time limit. He has to get it by. I want to see this guy succeed because he was telling me a little bit. He comes from a tough background, and he was getting to a point where he could be making $85 an hour. He was excited and amped. I’m that for him.
He turned around and was like, “My buddy doesn’t have to be a part of the deal. I’m good without it.” This is where the integrity comes in and doing the right thing because that was the first time the officer was supposed to meet. The second time was with the new guy who I brought in. He proposed it to me as well. I’m like, “That’s not the way we do business. I don’t want that on my heart, consciousness, and soul. No, thank you.” We ended up moving forward. I take it and get it under contract. It was at $20,000. I get it all the way down to $10,000. We turned around. I sent it out to the buyers’ list.
For the home you put under contract, he originally wanted $20,000. You were able to get it under contract at $10,000. He’s motivated. He knows what he wants to do in the future. You found a way to set it up for a win for him. You were still going to include the people that brought the deal to you, but you were able to ultimately put this under contract even at a bigger discount, meaning $10,000 for this home.
He went down to $10,000. It’s crazy.
You send this out to the buyers’ list. At this point, you’re going to mark this assignable contract and market it to your cash buyers list. Is that correct?
Yes. I sent it out to my cash buyers list.
Some sellers you can talk to every once in a while; others need you to hold their hand and give them a lollipop.
What did that look like?
I use Mailchimp. I write up a quick email for details on the property and the pictures. I didn’t even schedule a time to see it yet. I turned around and got a ton of responses and then about eight commitments for the day after. I scheduled it based on the availability of the seller, but I also gave the buyers enough time to make the appointment. I scheduled it two days later. There were a ton of people there. A bunch of them I knew. As they talked, I let the guy I’m training go and show the buyers through the house. I stayed with the seller to continue talking more about the things he had because he got nervous.
How many people are we talking about so we can start to begin to even envision what’s going on? Were there 5 people or 20 people?
There were about 11 to 12 people there.
In his mind, he’s thinking, “What’s going on?” You’re doing something right by saying, “I can notice the seller is starting to be like, ‘What’s going on?'” You’re able to notice this. You go over there and start talking to him and helping him through the process.
I was explaining everything to him. From there, we get a commitment. We sent it to the title. This seller called the title company every single day.
He’s not only motivated. He wanted to make sure this was happening. It’s not like, “I need money tomorrow.” It’s also about trust but verify daily, “I want to make sure this is going to happen.” He’s nervous as he will get because he knows what he wants to do with the money. He wants to make sure you’re going to fulfill.
He wants to make sure we’re going to perform.
Is your title company going nuts? Is your title like, “Rondel, you have to call this guy because calling me daily?”
First, it was daily, and then they started calling me every few days. It turns out the title did not come back clear. That was the biggest issue. We had some issues when it transferred. He’s calling me, “I’m going to have to do a quitclaim deed and this.” I’m like, “It’s fine. This is what the title company is for. This is why we use the title company to make sure that if anything like this happens, they can take care of it for us.”
I calmed him down for about two days, and then he’s back on it. He’s calling me. I’m talking to him again. We’re constantly talking. We talked about it every day. There was so much going back and forth with us. That’s what he needed. Some sellers you can talk to every once in a while. Others need you there, holding their hand and giving them the lollipop.
What did you learn from this experience? I want to know even more about had you not done this. If you don’t take the time thinking, “I got it under contract. I’m going to buy this. I don’t need to call you at all,” what happens if you don’t take these extra steps that you’re talking about?
This deal was gone, for sure. He would have backed out on day three. I can almost guarantee it. He was gone. This is the crazy part. We go through the deal. It gets to a point where the funds took longer to transfer than they were supposed to. If you’re in this, you’re going to be like, “What?” They took a little bit longer to transfer than they were supposed to, and he’s like, “I’m done with the deal. Come Monday. It’s over.” It happened on a Friday.
I love weekends to spend with my family, but I don’t love weekends for business because I can’t do a lot of business on the weekends. I’m frustrated. That Friday goes, and he said, “I’m off the deal. It’s over.” I’m like, “Calm down. It’s going to be okay. You don’t need to panic. I’ve been nothing but upfront with you.” He’s like, “I got this other guy.” He was going to wait three more weeks to a month before he got paid, take a loss, and still go through the whole title issue. I’m like, “Let’s be rational. You have to think about it. You’re on a time limit for this and that.”
I’m trying to help him out. That Friday, he was like, “I’m done.” That Monday, the funds were at the title. The title was recorded. The deal was closed. He picked up a check that Monday. It’s because he did not want to wait that extra day that he almost cost himself $3,000 and a month. After we got done, he thanked me. He was happy with the relationship that we had developed. Anyone else he knows, he’s going to let them know about me.
We’re going to break down a little bit further after this. On this deal, let’s go to the numbers. You put this contract at $10,000. What were you able to assign it for?
It was $25,000.
A $15,000 assignment is what you made on this deal. Let’s break this down. I want to congratulate you. This is an incredible win. It’s a $15,000 assignment that you’re able to make on this deal. More importantly, let’s break this down. What does it look like consistently? When you’re doing deals with people, how often do you keep in communication? This is a huge point. I know this from coaching students around this great nation. How many people do not call?
Your weekends are reserved for family, not business.
It’s like, “When I put it under contract, I move on to the next deal. I let this go to closing and let the title handle it.” Coincidentally, those are the ones that say, “I’ve had ten contracts canceled in the last couple of months.” I’m like, “What happened?” It’s this, right here. They never stayed in contact to see it through until the end. How often are you staying in contact with your sellers?
It’s at least twice a week.
What does it look like? Help them out. Are we checking in just to check-in? You have such a way to connect with individuals to make sure that they know that you love, respect, and honor them. Are you calling and saying, “How are you? Things are looking good. I talked to the title company.” Is it all the above? What does it look like?
A good lead is, “I’m keeping you posted.” That’s something they like to hear. It doesn’t always have to be a phone call. It could be a few text message exchanges. It’s so they know you’re still there. You never know what they could be thinking because a lot of times, I’ll call them, “I had a question.” We’re clearing that up and reassuring them. They’re good and confident in your ability for another a few days to a week, “I know everything’s good. I know everything is going to happen.”
The title company is a big one that you can use in the entry because title companies come up with stuff all the time. It’s good to make sure you’re relating that anyway. Checking and being genuine are what you build through the rapport, “How is it going with the trucking? Is everything going good? Are you all set? What are the next steps with that? What are you going to do after that? I’m checking in because I want to know.”
That’s crucial. The point that you’re saying is it’s got to be genuine. It can’t be just going through the motions. If they feel like you don’t care, then it’s better you don’t call because they will see right through this. Because you’re genuine and care about this, they open up and are like, “I love this.” They see it through to the end because you genuinely care for these individuals. Kudos to you. A $15,000 assignment is huge.
I want you to put a bow on this so people can understand when a deal has been canceled because there are times when deals cancel. It has nothing to do with how many times you followed up. Would you say in the past, when deals have been canceled, you could tie it more to the fact that it was the lack of you keeping in contact with them? Was it that they happened to cancel?
It hasn’t been the contact for me. That’s something I do here because I interact with many other wholesalers. Communication does play a part in it. For me, it has been other deals and reasons. Out of all the castles I’ve had, and there haven’t been many, the ones I have had have come back to me. They circle around and say, “I’m never going to win on price.”
If a guy comes in and he somehow finds out and wants to wave it off and go with it, I don’t hold anyone down. I’m not taking anyone to court. I don’t do any of those things because, in all actuality, it’s your property. You can sell it or not sell it however you want. If you say, “I want to go with this next guy,” that’s perfectly fine. I turn around. A month or two months later, they’re coming back like, “I tried the other guy. They didn’t work out. I liked you. I figured I would give you another shot.”
That’s solid advice. The whole point is you don’t have to beat them on price. The fact is you’re so good at building rapport and that relationship of trust. If deals do cancel, a good majority of them come back when the other people can’t fulfill them. They’re like, “I got to call Rondel. There’s something about him. I should have worked him in the first place.”
We cannot end this show without adding a couple of more gold nuggets and things that will add value to our readers’ lives. We always ask these two questions every show. I’m going to do the same for you. The first one is this. What’s a book that you are reading that has been game-changing or something that has helped you become someone better?
Something that speaks to my character and gives me a little extra confidence is No Excuses! by Brian Tracy. I love that book. It touches on so many different things, not only with business but personally as well. Something I did read that also was wonderful for me was Getting Naked.
What is that one about? What’s the concept behind it?
Getting Naked is honestly about being who you are and not trying to fake it and pretend to be this superhero or super person. It’s okay to say, “I don’t know that but let’s move this way to get an answer.” It’s not about completely not solving problems, but it’s also about admitting, “I don’t have the answer, but I will find it.” It’s being yourself.
It’s being real, vulnerable, truth-teller, and truth-seeker. The second question is this. You’ve been doing this for years. Looking back and knowing what you know now, what would you tell the years-ago-Rondel that you know? What would you do differently if you were starting all over again?
It’s so easy. I’ll put it to you like this. I closed five deals in a month. It has been a couple of months of me being with the tribe. Had I started at the time and I knew months later I would be closing five deals a month, I would have joined you a long time ago.
I appreciate your kind words. Those words mean more to me than you know. In general, whether it’s me, Tom, or someone else, the whole point behind it is where you find value. Did you find value in a mentor in general, the community, or both? What was that so that people know what to look for if they’re looking for this action?
With everything you’re looking for, come to the tribe. In all actuality, it’s the knowledge base. I’m a big analytical guy. I love analytics. The tribe and its knowledge base are so massive. There’s a guy who spoke in the forum.
Always check in from time to time and be genuine with your seller because they can feel when you don’t care.
It’s William R. within the forum, but it’s Bill Rafter. We call him the National Treasure. That guy has years of wisdom. It’s unbelievable.
You’re on there, and then about 15 to 30 minutes later, it’s this whole column. You’re like, “It’s exactly what I needed.”
He has been doing real estate for the same amount of years as I am in age to put it in perspective how much knowledge this guy has. He’s incredible. He has the biggest heart. He’s the biggest go-giver. You post a question, and fifteen minutes later, all of a sudden, it’s right there. It’s plain and simple. We love Bill Rafter. He’s such an incredible rock star and member of the team. Rondel, I want to thank you so much for being on this show and sharing something from a different angle.
I’ve never done a show where someone spoke about staying in touch with your sellers consistently, at least two times a week all the way through the closing. This one that we talked about was a daily thing. It wasn’t even two times a week. If it needs to be more, then it needs to be more. This is something that many people forget. They think that once it’s under contract, it will be fine, and all the work is done. Part of the work is done. It’s not done until it goes to closing. To get it to closing, you’re going to want to stay in touch with them. Thank you so much for sharing this wisdom with Rhino Nation.
There’s no problem. I loved every bit of it.
Rhino Nation, you have read another episode where an individual, Rondel, has shared with you step-by-step how we got the deal but, more importantly, what he learned from this deal and how important it is to stay in touch with your sellers on a daily and weekly basis so that you can make sure that these deals go all the way to closing. If you need more of those strategies and a deeper strategy or way of building this wholesaling business and looking for that help, head on to www.WholesalingInc.com where you can book a call with our team and begin that conversation.
See if it’s something that’s fit for you and if it’s right for you. If so, we will bring you into the tribe and get you well on your way to doing deals consistently so that you can find these off-market deals consistently month after month. Until next time, keep getting out there and taking massive imperfect action. We will see you in the next episode. God bless.
- Rondel Powell
- No Excuses!
- Getting Naked
- Be sure to join the Wholesaling Inc Facebook group
About Tom Krol
As the founder of Wholesaling, Inc., Tom Krol shares his insights and expertise in the field of real estate wholesaling with aspiring wholesalers. He established the business by first selling his belongings to provide a funding source for an effective marketing campaign. Mr. Krol closed his first deal as a result of those efforts has built athriving Real Estate Wholesaling business.
Tom Krol has distinguished himself as an in-demand speaker, author, and coach, as well as the creator of the Wholesaling Inc Podcast, which centers on next level tips, tactics and strategies for aspiring wholesale investors. He has appeared as a guest on more than 10 major real estate podcasts, including Bigger Pockets, Real Estate Investment Mastery (with Joe McCall and Alex Joungblood) and Trevor Mauch’s Investor Carrot Podcast.
In gaining such explosive success in the Real Estate Wholesaling arena so quickly, Tom took his expertise and desire to help others and created the Wholesaling Inc coaching program.
The Wholesaling Inc coaching program has created a tremendous amount of successful Real Estate Wholesaling investors. Many of Tom’s students have generated tens (and some even hundreds) of thousands of dollars in income. The reason why Tom’s program has helped so many people find success in Real Estate Wholesaling is his “Instruction over education” approach.
This solves the “information overload” problem that so many aspiring Real Estate investors face. By handing people a step by step “roadmap” to follow (and giving people specific instructions to follow on a daily basis), his program takes all the guesswork out of the equation and is considered one of the best training programs in the Real Estate industry.
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.