In times of adversity, it’s easy to get lost in your worries, anxiety, and fears. On the flip side however, today’s trying times is the perfect opportunity for you to exercise both your resiliency and creative muscles. Our rockstar guests today chose to do the latter and they’re $54,000 richer for it!
Vamsi and Vijah Boddu are two ingenious wholesalers from Columbus, Ohio. The two are brothers and business partners at the same time. Together, they have done several deals in two different markets and in this episode, they shared a recent deal they did and how they made it happen.
They say unprecedented times call for unprecedented measures and these two brothers definitely know how to rise up to the challenge! In this episode, you’ll not only learn how to think outside the box, you’ll also discover how building rapport can make a world of difference. So much wisdom and inspiration in today’s episode, so don’t miss it!
How To Adapt And Grow In The Face Of Adversity With Vamsi And Vijah Boddu
I’m super excited to be with you guys. I hope everyone is well, safe, and doing everything you can to find the adaptations you need to do and things you need to evolve in your business and enjoy some of this time with family and loved ones. It’s a different time that we are all living but I believe there’s still a lot of positive and good out there. It’s up to our perspective on what we can do now. In this episode, for those that are new that are reading, we are going to be talking about how you can find deeply discounted off-market properties and turn these deeply discounted properties into huge profits.
It’s going to be one of those that you are going to get ready to get some paper, get a pencil or pen, and jot down some notes because this one is a big deal. This was one that they were able to serve at a high level, find an exit strategy that works, and ultimately have an incredible win with this deal. With us in this episode, we have Vamsi Boddu and Vijay Boddu. They are brothers that are working on this together. They have done about 6 deals in 2 different markets. We have Vamsi, who lives in Florida, and Vijay, who lives in Columbus, Ohio. The market that they work in is the Columbus, Ohio market.
They are going to break down a deal that they did so you can learn how they did it, step by step. Get ready. This is going to bring a ton of value to you. This is going to bring a lot of action items that you can go out there and simply execute yourself so that you can get out there and have a huge win like they are going to share with you in this episode. Let’s rock and roll. Vamsi, Vijay, how in the heck are you two doing?
We are great, Cody. How are you?
I’m doing well. Vijay, how are you?
I’m great, Cody. How about you?
Good. Are you guys staying safe? Are you staying awake? Are you being crushed by all this stuff going on? Are you like, “No, this is a time to learn new things,” and you are getting through all this fine?
We are staying in, for now, to make sure. Not only are we safe but even everyone in our family is safe because if we catch anything, they catch it too. We are trying to be as safe as we can. We don’t go out except for groceries. If we know that we already have a relationship with the seller and if they are motivated in showing us the property, we take a call if we want to go to the property or not. As of now, we haven’t gone into any unknown sellers’ homes. That’s one precaution we are taking. We don’t want to slow down because this is the time where we can help more people and do more deals.
How has it been for you? Let’s maybe go right there. How has it been as far as to lead flow? Are you seeing an increase in leads? Are you seeing about normal? Are you seeing a decrease? What does that look like for your real estate business?
When this thing first hit, we were already seeing a decrease in the lead flow because we were trying to understand why the contract rate was slow. To be honest, it had been slow for at least a month before this started. It had nothing to do with the Coronavirus. We can’t tell if it went down. What we have been seeing is that even the leads we get, the people who are interested in selling don’t want us to show their properties.
We don’t like to give numbers on the phone without having a good deal evaluation done by visiting the property. It’s slowed us down but that’s because we haven’t adapted. We speak to other wholesalers, and they say they are getting a lot of deals. They are signing more deals now than they did before. It all depends on your mindset. If you are in the right mindset and have the right tools, you get more deals. As simple as that.
This is crucial. Here’s the other question to this that is good to know. Is your marketing staying as consistent as you have always been or do you feel like you’ve decreased? Have you seen a drop in lead flow over the last months because maybe there’s also a tie to your marketing or not? Are you staying strong with your marketing?
You’ll get more deals if you have the right mindset and tools.
It’s partly true with the marketing too because we pull leads from PropStream. Maybe there were some duplicate leads. We are trying to pull multifamily homes. Eventually, when we Skip Trace those leads, we try to pull 10,000 leads. When we Skip Traced, we only got 400 multifamily leads. We realized later that it has something to do with the marketing. We didn’t go after other high-priority lead lists like low credit. We were pulling a general list from PropStream.
That’s one thing I always have looked at in my own business. It’s like, “If there’s any decrease, what’s going on?” We have seen an increase in leads but we have also made sure that we have kept our marketing going. It sounds like your marketing is going. Now, it’s getting more opportunities. That’s another list that will provide a little bit more opportunity than 400. That’s always good to know and understand, which is awesome for our readers to understand. It’s still getting that marketing out there consistently. Make sure that you give yourself enough opportunities or shots.
Make sure you are getting lists that you are talking about that provide 400. Now they will have to look for other lists that can provide a few thousand more names so they can keep busy and going at this. What deal are we going to break down? I know this was one that you did. What I want you guys to do is break it down to the beginning. Right from square one, how did you come across this deal? What list did this deal come from?
What we did was, because we had callers calling eight hours a day, we wanted to give a big list to them. We did the same thing I explained. We pulled a big list from PropStream and looked for absentee owners, property liens, and different lists. We put them in the XenCALL system, which is our dialer. We call the leads. Our caller called the lead. She told us that the seller was interested in selling. We spoke to her in November 2019. She was not ready to show the property. She got this property from her dad. She’s a very good lady.
Was it inherited? Is that what it was then?
It was inherited, but we didn’t get it from the inheritance list. We pulled a general list of all absentee owners. We spoke to her. She was not ready to show the property. We made the first contact in November, and then she didn’t want to do anything until the New Year. I kept following up.
How often did you follow up? When someone says, “I don’t want to do business now. I want to wait a couple of months,” do you wait a couple of months? How often were you following up with this individual?
It depends on the situation of the property. If the property is not vacant, has tenants, they are making money, and they say, “Don’t call me back in six months,” we try to follow up in three months. If the property is vacant like in this scenario, we know that the motivation to sell is higher, so I tried to follow up every 2 to 3 weeks. I tried not to go beyond that because she might forget who we were, and then we had to start the whole conversation all over again.
I hope every one of you reading is writing this down. It’s to keep yourself in front of the sight and mind and make sure that you are reaching out to them enough. This was going to be a few months out. Every 2 to 3 weeks, he’s reaching out to make sure that constant contact is in place. That is what we call touch. It takes about anywhere, on average, 5 to 12 touches for people to feel comfortable and trust you to move forward and do business. Every one of these phone calls is acting as a touch, which is crucial to understand. Keep going. We hit the New Year. What did the conversation sound like when you were working with her, and now she’s ready to go?
Even when we followed up in January 2021, she’s like, “Give me a few more weeks. I’m going to show you the property. There are a couple of people who are interested. Let me line up the schedule, and I will let you into the property.” Throughout this time, I was building a good rapport with the lead. She was an older person. She had a couple of health issues. I was trying to explain to her the nature therapy and the courses I went through. I was telling her how she could get rid of her back issues.
I was building a good rapport with her. To be honest, it had nothing to do with the deal. I was trying to understand how I could help her differently. In a subject, I was getting knowledge. I was very passionate about health. I turned like that after my dad passed away from a heart attack. I was working on my health. I was trying to give her help in any way I could. Although I was not a doctor, I was trying to help her. Everything was about building rapport.
She was trying to understand what we were doing. We didn’t talk about the numbers at this point because I told her clearly that, “I needed to see the property before I even gave you a number.” The most important thing was building rapport. She understood us and the pain that my mom was going through when my dad passed away suddenly. That gave us a good connection with her. We kept the conversation going. One fine day, she said, “Go ahead. Come over. Let me show you the property.”
This is crucial. I want to capitalize on some of these things that if you haven’t written them down, I’m going to pinpoint some things that, if it were me reading this, this is what I w would be writing down. That’s a couple of things. It is working on building rapport, making sure that you are always building rapport, getting close with people, making sure you are building that relationship of trust, and working with people closely. More importantly, serving them in ways that are over and above real estate. Vamsi was working on himself with his health and because of that found a way to serve this individual to help them with back pain and things that could serve this seller.
I want you to think about this. This is what we do in real estate. Many times we think because we are in real estate, we only talk about real estate. That’s not the case. Vamsi’s teaching us how crucial it is to make sure that you serve them over and above. There’s no doubt in my mind that this is what’s going to lead to them getting the deal. It’s these little conversations now, going over and above and serving them. Keep going. What happened when you went out and saw the property? What did that all sound like? How did that all come together?
Vijay then went over to the property and built a good rapport with her. I will let Vijay talk from here because he was the one who was onsite. Vijay, do you want to take over and do this portion?
This is a unique thing. You do the front end, Vamsi, it sounds like and Vijay is the one that’s like boots on the ground, goes and does all the meetings. Is that correct?
Exactly. He’s a very good negotiator. He learned some negotiating skills. It’s not only about negotiation but how you come across as a person to anybody selling your property. He’s pretty good on that end. I will let him talk.
Let’s go, Vijay.
Negotiation involves how you come across as a person to anybody selling your property.
I went and met the person. She came along with her son and granddaughters. I went and looked at the property. It was in pretty good shape. Not much work is needed. We walked through the property, took a look at it, and then I was trying to get the number of what she was looking for. She wasn’t comfortable at that point. She asked me to do my research and come up with a number.
I couldn’t get a number from her on that particular day but we went back. Vamsi and I sat down, evaluated this property, and broke down in person. We were more comfortable at $36,000 on this property based on the current situation of the property and the seller’s motivation. We thought $36,000 was a fair deal. After looking at the property, we spoke to her again. Vamsi called her after two weeks.
We told her the number that we were comfortable with because she was very particular about not giving the number. She came back and said, “I’m not comfortable with $36,000. What I’m looking at is around $40,000 to $45,000.” That way, we were able to get a number out of her based on that conversation.
When you say $36,000 to help people, was that your max number already or, “This is a good starting point but I have some room to go higher if I need to?”
That was a starting point. We would be comfortable paying $40,000 at that point but we started with the number to figure out what her numbers were.
This is crucial. Jot down these notes. It’s not giving your max price out first. I agree with this 100%. Many times, we give that max number out and then realize, “I have nowhere to go.” It’s starting lower than your max price and giving yourself room to go up if you have to. I love this.
We learned this from other TTP members. We partnered up with other TTP folks from Houston, Ryan. We told him, “How do you negotiate this thing? She doesn’t want to give us a number, and we are not comfortable throwing a number.” All the properties on that street were being rehabbed. They were at $160,000, $140,000, $150,000.
We are like, “We can’t even give a number because it’s too hard to give a number based on the properties which have already been rehabbed. This one needs a little bit of work, so we don’t know how to do it. Can you help us?” They told us that, “Look at the recent sales.” We looked at PropStream and what the recent sales were for properties that were done prior to rehab. They were selling at $40,000 to $45,000. We looked at the Franklin County records.
It did say that the property was at that price, and that’s what I used as my number. I told her that, “We see that the properties selling nearby are selling $40,000 to $45,000 price range but your property needs work, so our number would be after the rehab.” We did get some help from our other partners, who taught us how to negotiate based on some other factors. That was another good thing we had going for us.
You say $36,000. She’s more comfortable between the $40,000 and $45,000. Is this something you did over the phone or in person to put it under contract?
I did that over the phone, and I let her go. I said, “Decide and take your time, ma’am. Let us know if you are comfortable with that number.” She told us that, “I’m at $40,000. I will let you know what’s going on.” She started talking to other wholesalers. One day, I was opening up a business account. She called me and told me that, “I have an offer from another wholesaler.” I asked her, “Do you mind me asking you. How much is he paying?” She said, “$40,000, and that’s the price I wanted.”
At that point, I congratulated her and told her I was glad she did this deal. Before hanging up, I asked her, “If you’ve got the number you are looking for, why did you call me? You’ve got the number. It sounds like you are happy. Why did you even call me? I only want to understand.” She told me, “The reason I called you is that I liked you, and I didn’t want to go behind your back and do a deal. I wanted to give you a message that I’m going ahead with this other person.” She said, “I wanted to be honest.”
She’s a very good person. You never get a lot of people like that. I thought, “Let’s ask her one more question.” I said, “If I give you the $40,000 you are looking for, would you do that deal with me?” She said, “The whole reason I called you is that I like you. If you are going to give me that $40,000, I would go with you instead of going with that other investor.”
This is so good, Vamsi. This is where we are talking about this rapport. This is the work between you and Vijay going out there and being likable individuals. People that she learned to like, love, respect, and trust. Now, she gets an offer, and instead of pulling the trigger and saying, “Yes, it’s the highest bid. Let’s go with this one,” she’s like, “There have been two individuals that have been working with me that have been great. I want to give them a shot.”
That speaks highly of who you two were during the process because that’s what gave you the shot at the end to come in and simply match the price. You did so much on the front end, serving her and bringing value to her life that she felt that obligation that, if you folks could come up to that price, she’s ready to roll with you. This is a testament to how crucial it is to build rapport and establish that relationship with trust because people do business with people they trust. What a good story behind all this. Talking about you’ve got this under the contract of $40,000. What did you choose for your method to exit the property so that you could make money?
When we evaluated the property, all the properties which were rehabbed were selling for $130,000 to $140,000. The funnier side was that we didn’t even know that it was selling at $130,000 to $140,000. We thought it was probably worth $90,000. What happened was when Vijay went to get the contract signed, the other investor was pissed that he lost the deal at the last moment because that was his deal, and we took the deal away.
He showed up, and Vijay had a tough time. The investor took him to the side and tried to negotiate with him. He was saying, “You should pay me money because she was at $43,000, and I brought her down to $40,000.” Vijay told him, “We were at $36,000, and because of you, we have to go to $40,000.” That was a discussion with him, and he was pissed. He was the one who said, “Do you even know the value of the property?” He said, “It’s around $90,000.” He’s like, “It’s at $140,000 if you finish the rehab.” We were shocked.
What did you choose to do from here? Was this something that you simply wanted to bring in a cash buyer? What was your strategy used so that you could make a profit on this property?
If you want to cash in the business, do wholesaling.
The sale price was $40,000, and we had the cash. The partners we had in Houston said, “Let’s take it down ourselves and try to sell it on the MLS.” We knew that the spread was bigger, so there was no way we could go wrong because our buyer list was not too big, and the deal was too good. We thought the best way to do a deal when you have a big spread is to take it down, go to the MLS, and list it. If it doesn’t sell, we thought, “It rents for $1,000 to $1,200 a month.”
A $40,000 property that could rent for $1,200 a month is a no-brainer. We can hold onto the property. We still decided to wholesale because we wanted cash in the business. We didn’t want to hold on to any properties yet because the factor was, “Should we sell it? Should we keep it?” We then decided, “Let’s sell it out.” That’s why we decided to list it on the MLS with a realtor and said, “Cash sales only,” thing.
You chose to take down the property yourself. You bought it with cash. You close on it. You own it now. Now, you simply do what most people call a wholetail. You put it back on the market, on the MLS, and it’s a cash sale only. What did that end up doing? When you put it on the market, how long was it on the market? What did it sell for?
Putting it on MLS was so exciting because when we were selling properties to off-market buyers, we were very anxious about what price we get. Our experience in the past has been, “Will we get a buyer or not?” As soon as we put this on the MLS, people went crazy because of REITs in that area. We listed it for $90,000 because our realtor said, “If you list it at $90,000, you might get a competitive offer situation or a multiple offer situation.” We said, “Let’s go with your recommendation. I’m not the expert. You are, so I will trust you.”
We listed it for $90,000. The first offer came in at $95,000, and there was another offer right after that. That person was offering $98,000. They kept fighting with each other and took up the price. The first person offered $101,000. The last buyer eventually, to who we sold the property, offered $103,000. We were going crazy with these numbers.
The property starts at $90,000 and gets bid up another $13,000 additional thousand dollars over and above the asking price. When we talk about what this looks like after everything was said and done with real estate fees and that, what were you able to net on this property?
We netted $54,000 after paying the closing costs and realtor commissions.
Was it $54,000 after commissions and real estate costs?
It was $54,000 into our pockets.
You gentlemen know what’s coming now. We’ve got the victory bell ringing out for Vamsi and Vijay, who thought every step through this on how to make this a deal for them and make this win happen. I want you to think about the whole process from the beginning, building that rapport, to the end. Not only simply assigning the contract to an investor. Maybe that only would have been $20,000, $30,000, or $40,000 but to think outside the box and say, “Let’s find a way that’s going to maximize with this deal that we found, what’s going to maximize the return on our investment.”
They did what’s called a wholetail by simply putting it back on the market. They own it, and now they are simply selling it. Here, it sold for $103,000. Folks, this is an incredible strategy that you need to consider. With some shifts in the market, I have not seen shifts yet in the real estate space. We have seen where unemployment is going up, some businesses are struggling and taking off during this time.
It’s crucial to understand that even in our business now in Utah, we do not see a deep in home selling. There’s still not enough inventory specifically for Utah now. We are still seeing a steady retail market. Are you two seeing that as well in your Columbus, Ohio market? Is retail still going smoothly? Do you still have not enough inventory? Are people still looking or buying? What does that look like in your neck of the woods?
In Columbus, Ohio, we get feedback from agents because I don’t want to depend too much on the market conditions. I want to focus on putting the marketing, keep the calls going and do the follow-ups. At least from the feedback, we get from agents, they say that the buyers are not going to the properties to take a look at them butt has slowed down a little bit. It hasn’t ground it to a halt.
You two did an incredible job, helping our audience understand what you can do in the market and thinking outside the box of not only your straight assignment or for those that are buying them for their own long-term buying holds. There is this other option called a wholetail, where you simply buy it and put it back on the market. You are marking it to cash sale, so you are still marking under the actual after repair value. This is crucial. This is great stuff. I appreciate you breaking this down in such an easy way for our audience to read.
We always break down with two things. Since there are two of you here, I would love to have each one of you share with me on this. We always ask two questions to end every show. The first one is this. You can pick who goes first. Knowing what you know now, is there anything you would have done differently at the beginning that you are doing now that you didn’t do at the beginning?
I will start because I started wholesaling and then had my partner add. I tried the Miami market when I first started wholesaling. I tried it for ten months. It was okay. I made some money. I made $42,000 in this market but I spent $13,000. I still came up with a profit, to be honest with you. I was not analyzing my marketing and operation costs. I was not focused on how much money was going out of my pocket versus how much was coming in. I was thinking, “Let’s put money. I’m sure money will come back.”
If you keep an eye on your costs, you will be much more motivated and focused on doing your next deal. You shift your business differently. I learned that from my partners again. They were very focused on the revenue coming in and the expenses going out of their pocket. I was only focused on the revenue coming in but I was not focused on the expenses going out. I was not doing it on a month-to-month basis.
Good advice. Vijay, take it away.
My brother has been my influencer all the while. I wasn’t much focused on wholesaling, so he’s the one who taught me the whole wholesaling process. The way he was doing his business in Miami influenced me to partner with him. I said, “Why don’t we start this in Columbus?” That’s how this idea kicked in, and then we started here in Columbus. As Vamsi said, we were focusing more on spending money initially but our partners in Houston helped us set up the systems. They taught us how to calculate our expenses. That helped us become more organized with our revenue.
Here’s the second question. What’s a good book you are reading now that’s helped you in your personal development that you would love to share?
I was not much of a book reader. That’s something I started months back. The first book I started was Miracle Morning. That, too, was introduced by my brother. I loved that book. After that, I completed Think and Grow Rich. Now, I’m focusing on further books. My favorite book is Miracle Morning. I changed my process. I used to sleep late at night and wake up late. I changed my whole schedule now. I go to bed from 9:00 to 9:30, wake up by 5:00, do my meditation, exercise and read my book.
I love how reading helped you shift into these new habits, and these habits are now serving you in return, which is crucial. Vamsi, what book would you recommend?
My all-time favorite book is Miracle Morning because that is the book that changed my life. That’s the book that got me into wholesaling because after starting the program in April 2019. Three weeks into the program, I gave up. I thought, “This is not for me. I’m not the right person to do this.” I spent the money on the course but that’s okay. I can live with it, but then, after reading the book, I’m like, “This is not how my life should be. I should do it.” After reading the book Miracle Morning, they teach you how the successful wake up before everyone else, work on themselves first, then get into the business. That’s when I did the whole shift. I started waking up at 5:00 and working out.
When I was running, that’s when I got an idea that, “Maybe I should try this wholesaling thing again.” There was another awesome wholesaling tribe member, Todd Durand. I called him right away. As soon as I started running, I called and asked him to let me into his office to see what his systems were. He was doing cold calling and direct mail marketing. That’s how I’ve got back into the wholesaling track again. I’m telling you, this book is awesome.
Anybody who hasn’t read this book should read it and live it. I’m living proof of an example. I lost a lot of weight. My health is all-time best. I read amazing books, so my mind is always clear. I started reading because you guys, in your Wholesaling Inc program, recommended The Four Spiritual Laws of Prosperity. That’s another all-time best book for me. Anybody reading books should read The Four Spiritual Laws of Prosperity because the whole concept of tithing shifted my mind.
You gentlemen did an incredible job. I want to thank both of you so much for taking time out of your schedule to add value to the audience here. Thank you for joining us. If Tom were here, he would be saying the exact same thing.
Thank you, Cody.
Thank you, Cody. It was great talking to you.
It is an honor to have you on here, by the way. For each one of you, Rhino Nation, thank you for joining us. Hopefully, this has been something that’s allowed you to see how deals can be done in different ways. If you can be a deal finder, go out there and find these deeply discounted properties. Those are the individuals that are going to make money in real estate because there are quite a few exit strategies. You have learned so many of them right here on the show. The crucial thing and the thing that has in common is to get good at being a deal finder.
Find these off-market properties, and you will make a lot of money and an absolute fortune in real estate. If you are looking to get into real estate and you are looking at, “How do I find these off-market deals?” Go over to WholesalingInc.com, fill out a short application and begin the conversation. If you are looking to get into it and want to be instructed like Vamsi and Vijay, we have now going on a price point that will fit most people’s budgets. We want so many people in real estate at this time.
Now is the time to plant the seed, put the jersey on, and simply get in the game. Not watch it from the sidelines. Now is an incredible opportunity for everyone to be in real estate, and we want to do what we can to help as many get involved. We put it at a price point that will fit most people’s budget but you have to take the action. Go over to WholesalingInc.com, fill out the short application and begin to have the conversation. See if it’s a fit. Let’s get you up and running, and get your real estate business up and going so that you can get out there and start finding these discounted properties. Take care and we will see you in the next episode.
- Miracle Morning
- Think and Grow Rich
- The Four Spiritual Laws of Prosperity
- Be sure to join the Wholesaling Inc Facebook group
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 businesses through his real estate training as well as helped 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.