Do you have a good-paying job yet know you could have so much more? If so, the wholesaling story of today’s guest will surely resonate with you!
Andrew Williams has a job that pays well. However, he knew he can have so much more. He knew he can earn more and be able to spend more quality time with his family. He also knew real estate is the way to go.
So despite his lack of knowledge and experience, Andrew gave wholesaling a go. While he encountered a few setbacks, Andrew persevered and worked around any curveball that was thrown his way.
Today’s episode is massively beneficial if you are new to wholesaling and are still trying to find your way around. You’ll surely find a few tips you can act on so you can achieve financial independence before you know it!
Escaping Your 9-to-5 Job with One Game-Changing Wholesale Deal
I will be hosting this episode where we are going to be deep diving yet another case study around wholesaling real estate. For those of you that are new to the show, wholesaling is simply the art of finding a deeply discounted property that you can then turn for a huge profit. There are multiple ways that you can exit on these deals so that you can realize the money.
The main focus here is if you can be a deal finder and be out there finding those deeply discounted properties, you, my friend can make a lot of money in real estate. That is what we are going to be focusing on. We will have a case study live with us, how they were able to find an off-market deeply discounted property and what they were able to do to make a huge profit.
We have Andrew Williams with us. He is from North Canton, Ohio. He has been going at this in his area since January of 2022. He is going to talk about a deal that he did where it is game-changing. You are not going to want to miss this. Grab a pad of paper, a pen and get ready to jot down some notes. This lets you know what action you can take to get out there and start doing deals in real estate. Without any more say, let’s bring on Mr. Andrew Williams. Andrew, how are you?
I am good, Cody. How are you doing?
I am super excited to be here with you. Let’s jump right into this and get going. Give us a background of what it is you do, what got you into real estate in general and then let’s get right into the meat and potatoes.
I live here in North Canton, Ohio. I have a full-time W2 job. I do accounting work for a government contractor. I was looking to get out of that. I can do the work. My company has been very good. They treated me very well. It has provided well for my family but I do not enjoy it. I am looking to get into something else that provides more financial freedom, time freedom and opportunities for my family and me. We would like to expand and go in a different direction. I read Rich Dad Poor Dad like a lot of other people and got the real estate bug. My dad had some rental properties and still does. I saw real estate as an opportunity to make that work. I found Wholesaling Inc, did some research and joined up.
What I want you to understand when you are reading what Andrew is saying is he’s going to share things that are going to be a reality for many of us. Here he is working a 9:00 to 5:00. This may not be the case for everyone but he is looking at it already thinking, “How do I, at some point, leave Corporate America and be able to do this full-time?”
It is awesome but maybe some of you were thinking the same thing. You have a job but maybe you are looking to get into real estate full-time. Maybe you will find things that will resonate with you in this episode, which I hope you do. Let’s break down, Andrew. What it is you did to find your deal? Let’s go right to it.
Tell them what you are typically doing. We talk about how you have to have a cash buyers list. There are people on the sidelines that want to buy these deals from you when you find these off-market deals at $0.40, $0.50, $0.60 on the dollar. You need to have cash buyers that are being like, “Yes, I want this deal.” That is part of how you can exit on these deals. Tell them the process you were doing to come across this deal.
One of the very first modules that we go over in the tribe is, “Start building up your cash buyers list and that network.”
How big of a cash buyers list are you supposed to have? What is a good number to have so that if people are reading, they are like, “I need cash buyers. How many should I have on my list?”
The bar is 150, though I would say, the more, the better. I am pretty new but don’t ever be satisfied with where your list is. Keep adding because the more buyers you have, the more competition you have for your deals, which is going to make your assignment fees go up. I came across this guy last October, November in 2021. I was working on a building.
I had pulled a list from ListSource and was cold calling it. I am trying to find buyers and he was like, “I am not looking to buy but I have one I am looking to sell.” I had 20 or 30 buyers on my list at that point. I am like, “I will go see this guy.” I called Steve Lee, who is over in Dayton. Shout-out to him for some help and advice that he gave me.
I want to slow this down for two seconds. This is killer. Here we are building a cash buyers list. You are sitting there doing exactly what you need to do. I am building a cash buyers list and you are 30 cash buyers in. You call a cash buyer and find out that this cash buyer sounds like a motivated seller. You are like, “Wait a second. I have not come to these modules yet. I am supposed to be building a cash buyers list. What is going on?” I want you to walk people through this because what you are doing is so good. All you were doing was taking imperfect action. You had no idea what you are going to do and what the outcome was going to be by building a cash buyers list. You had no clue about this.
All of a sudden, you get this curveball thrown at you. You have an individual that is not a cash buyer. He is a motivated seller. At this point, you probably did not even have much experience to no experience on, “I was not expecting this. What do you do?” How were you able to navigate through this? There is some gold sitting in this story that people can read because too many times, we build a perfect plan realizing there is no perfect plan. You take imperfect action. Walk us through some of the feelings you were going through.
It was a curveball and I was like, “Do you think I can come to take a look at it?” He is like, “Sure.” I was like, “I have no idea what I am doing.”
Don’t get so caught up on a step before you move on to the next step. Just keep going and keep taking massive imperfect action.
Did you frantically start looking through the whole course like, “What video can I hurriedly watch?”
I was jumping ahead like, “Where do I go? What do I say?” I scheduled a time with him. I called Steve and was like, “What do I do?” He gave me some pointers. I went out and met with him. It was a miserable day. The rain was pouring down and it was cold. This was a house that he had purchased earlier in 2021 and he was renting it. There was a guy that was getting ready to move into it. The tenants were there.
We went out, he gave me a tour of the house and we talked. We went out in the detached garage and afterwards spent 15, 20, maybe 30 minutes talking and building some rapport with him. He was like, “Do you want to go talk numbers?” We drove to the McDonald’s, went in, sat down and started talking. He was pressing me for what my offer was going to be. I had no knowledge.
Did you have any clue at all? Were you like, “I know that these homes sell for X amount of dollars, so I can only offer this,” or are you like, “I have no idea, so I am going to throw out a number?”
I had no idea. I had seen on Zillow where he had purchased it for $69,000 or $70,000 if memory serves me correctly. At the time, the market was different than what it is now. I offered him $50,000 for it and he was like, “I can’t take that hit on it.” I didn’t have an answer to his objection. He was ready to sell it.
There is so much good here that I have to point out. First and foremost, you knew on Zillow that he bought it for more than you made the offer. This is crucial. Many times when new people are getting into this, they feel like, “This guy would never sell at a discount more than what he bought it for. I am going to offer him the $69,000 that he spent.” You did it and said, “$50,000.”
You anchored a low price, threw it down there and he was like, “I can’t do that.” There is so much value in what you shared because I do not think naturally people will want to do that. People are scared to go low or say a price. You did it. Keep going. He says, “No, that does not work.” Did you start bending your price or did you hold firm?
I did not counter with a higher number because I did not know what an investor was going to pay for it. I had no idea what the property was worth other than I saw that he had paid about $70,000 for it and I was offering him $50,000. He said, “That is not going to work.” We were in McDonald’s for five minutes and I left. I said, “If something changes, give me a call.” I followed up with him twice. I called and left a message. He never called back or anything. This was October, November of 2021. I never thought anything of it.
Out of the blue, my phone rings and I answer it. It is him. This was in mid-April 2022. He calls me up and says, “This is Bruce. Were you still interested in coming to take a look at my house?” When the whole COVID-19 thing hit, he had some health complications and was in home confinement due to his health issues. He had signed a lease with the tenant. The tenant had left and some of the tenant’s friends had moved in.
The tenant left at the beginning of December 2021. For December 2021, January, February, March and April of 2022, he had not received any rent money for the property. There were people there. They had managed to scrape enough money together to pay the utilities but they were not working and they were living in the house rent-free.
Things changed drastically, not just health but also tenants who are not doing anything.
He says, “I need to sell this. I need it gone.” I said, “Okay.” He talked with the tenants and told them I was going to come and take a look at the property. I went back, went through the house again, took some pictures and we had some conversation. Long story short, I said, “The real big problem is people do not want to buy a house with people living in it that are not paying rent. That is going to be a big deal. No one is going to want to take on that responsibility.” It used to be a duplex. He was using it as a single-family but if you had done some modifications to it, it could have been a duplex.
There was a washer and dryer hooked up on the second floor that had leaked into the kitchen below. There was a water leak. There was an above-ground pool in the back. This is in the city, so there is a really small yard. The pool took up the whole backyard but it was old and nasty. It needed to be drained and hauled out of there. It was in bad shape.
A lot of deferred maintenance was done to the property?
Structurally, it was good but there was the leak, the floor needed to be redone and some other stuff. It needed a fair amount of work. We came to terms, I offered him $20,000 and he accepted it.
The first time was at $50,000. Three, 4, 5 months later, he comes back, needs to sell and you get it at $20,000. I want to point out one thing to those reading. Things change. We have people that we call and they are like, “No, it does not work.” Time can change that. I want you to understand if you are someone that is already in the business and you are reading this episode like, “What can I pull from this,” the biggest gold nugget that you could pull from this as of this moment is the fact that you need to follow up because things change. This would be something that I would tell each one of you to do. Look at your current database and CRM. I would do a follow-up blast with anyone and everyone you have talked to in the past six months because things change drastically.
Some people need your help and are in a situation where they could use an honest, good-hearted, sincere individual to come and help them out and be a solution or at least attempt to be that solution. What Andrew is sharing here is a perfect example. He went out there, made an offer, things changed over six months, he followed up a couple of times, gets in contact and things changed drastically to where he needed to get rid of it. You get the home under contract. We are up to speed. What did you do from here?
Do not give up. Don’t just simply cancel a contract. Throw up a Hail Mary if you have to.
I got it under contract, got more pictures and was like, “What do I do? I had to send this out to my buyers.” I go to Mailchimp and set that up. I had to put the description of the property and the pictures on Google Drive and create a link so that people could go on, look at the pictures and get that sent out. I talked to one of my cash buyers and said, “I have this property. Do you think you might be interested in it?” He was like, “Maybe.” I sent it out while I only had two people respond at $37,500. The ARV for this was $80,000 to $90,000 if someone was going to buy it. It was a rental-type property. It was not a candidate for a flip.
The two people that respond told me, “I am not interested at that price but if you do not get any offers, let me know.” I am like, “This is not good.” I sent it out on a Wednesday. I had an open house scheduled on Saturday. I had a two-hour inspection period. I said, “This is when you can come to take a look at it.” Thursday and Friday, I am scrambling like, “I need more cash buyers. I am not going to move this deal. I am going to be stuck with this.” Friday morning, I am down here in my basement trying to find cash buyers.
I call this lady who lives within an hour of here. I said, “I am a wholesaler. I live in North Canton. I have a property under contract. You think you might be interested in buying?” She said, “No, but my sister might be interested. She lives out of state.” I said, “I’m having an open house. If you would like, you are welcome to come.” She is like, “Okay.”
I sent her the information and she said, “My sister is not going to be able to come but my husband and I are going to come.” This is the day before the open house or the inspection. Saturday came and I had her and her husband, another guy, he and his partner came, they were looking for a fix and flip. I had another guy that came that owns a bunch of rentals in the area. I had another guy and his partner and they said, “It is not for us.” The one guy that came and looked had ended up giving me an offer for $15,000.
I told everybody in the email, “Send me your highest and best offer. I need a $2,500 non-refundable earnest money deposit. The buyer is going to pay the closing costs.” The inspection was Saturday and I said, “Send me your highest and best buy noon on Monday.” At 10:00 that morning, the lady I talked to on Friday who said her sister was interested, said, “We would like to offer you $30,500.”
More gold nuggets are mentioned. Everyone reading this, do not give up and simply cancel a contract. Work through it. He was down his basement throwing Hail Marys, “I got to add cash buyers.” This is phenomenal. If I did the math right, you had it under contract at $20,000, sold it for $30,500 where you were able to make $10,500.
We got the victory bell rang for doing an incredible deal and job where you can serve this individual but, more importantly, persevere through this whole experience. You were able to keep working. There were other tribe members and a community that you could reach out to. You had Steve Lee. The crucial is when you are like, “What do I do?” Sometimes that support system helps.
Another thing that I would say to anyone out there, whether you are part of the tribe or not, be part of a community that can buoy, support, build and help you along the way. That’s what helps every one of us. You had so much value to give in this. First and foremost, I want to congratulate you. That is so amazing.
Second of all, this has gone from faith to fact. It is the point where you are like, “I can do this. I have done this. I know what it feels like. I have tasted it.” It is going to give you so much more confidence. Do you feel like moving forward, you are immovable, unshakeable, move forward and crush it? What does your future look like for you?
I have a lot more confidence at this point. I had to cancel a contract. I have another deal that ended up falling through but then I have a property under contract that I’m going to have an inspection. That is going to be a good deal. I have another lead that could be an even bigger deal than what I did. Things are moving forward.
That 9:00 to 5:00 is going to be nervous when you get a phone call coming in soon saying, “I’m done.” Andrew, thank you so much for sharing your story with us and your case study of what you did to do a deal. I always end the episode with two questions. First, what is a good book that you are reading that is the game-changer?
I am reading a book called Getting Things Done by David Allen. It is about the organization, setting priorities, getting things organized and how you can accomplish more with less stress. That is what I am going through.
The last question, is there anything you would do differently looking back knowing what you know now?
I got held up on that whole, “I have to have 150 buyers before I do any marketing.” You need to get buyers. I don’t want to minimize the importance of that but I would work harder at that. I would also take more action on trying to find a deal in the meantime as well. Don’t get so caught up on, “I have to get this step before I move on to the next step.” Keep going and working at it. Fail forward. With massive imperfect action, keep after it and persevere.
Andrew, thank you so much for being on the show. I appreciate your time. I want you to get out there so that you can keep doing deals. Maybe we will have to do another recap and episode next time where we are updating on all the new deals that you are doing here shortly.
That would be awesome.
Rhino nation, you’ve read an incredible episode where Andrew broke down the things that he did so he could get this deal. I hope you took notes and you see within yourself the action you must take so that you can get out there and do your first deal or next deal. If you need help building your wholesaling business, head on over to WholesalingInc.com where you can book a strategy call with our team, begin to have the conversation and see if it is the right fit.
If so, we may invite you to be part of this elite group so that you can keep moving forward, accomplish the goals that you want to accomplish and make 2022 the year where things change drastically for you for the better. Thank you for joining us on this episode. Take care. We will see each one of you on our next episode.