Posted on: June 19, 2020

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!

Key Takeaways

  • Why building your buyer’s list is key
  • Ideal number of buyers you should have on your list
  • Where he pulled the list from
  • The marketing channel he used
  • What he did when seller did not accept his offer
  • Why doing a follow up blast can make a world of difference
  • How he marketed the property
  • How much he bought the contract for and how much he was able to sell it
  • What closing the deal has done for him
  • Game-changing book he recommends
  • What he’ll do differently knowing what he knows now

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

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Episode Transcription

Cody Hofhine:
You’re listening to another episode here on Wholesaling Inc. My name is Cody Hofhine. I’ll be hosting today’s episode where we’re going to be deep diving yet another case study around wholesaling real estate. Now, for those of you that are new to the podcast, wholesale is just simply the art of finding a deeply discounted property that you can then turn for a huge profit. There’s multiple ways that you can exit on these deals so that you can realize the money. But the main focus here is if you can be a deal finder, if you can be out there finding those deeply discounted properties, you, my friend, can make a lot of money in real estate. So that’s what we’re really going to be focusing on. We’re going to have a case study live with us right now, how they were able to find an off market, deeply discounted property and what they were able to do so they could make a huge profit.
So today we have Andrew Williams with us. He’s from North Canton, Ohio, and he’s really been going at this in his area since January of this year. So just a few months, and he’s going to talk about a deal that he just recently did where it is game changing. So you’re not going to want to miss this. Grab a pad of paper, grab a pen, get ready to jot down some notes so that this allows you to know what action you can take today so you can get out there and start doing deals in real estate. So without any more say, let’s bring on Mr. Andrew Williams. Andrew, how the heck are you?

Andrew Williams:
I’m good. Cody, how are you doing?

Cody Hofhine:
You mean well, my friend. I am super excited to be here with you. Let’s kind of just jump right into this and get going. Kind of give a little bit of background what it is you do, what got you into real estate in general, and then let’s just get right into the meat and potatoes.

Andrew Williams:
Sure. So I live here in North Canton, Ohio. I have a full time W2 job. I do accounting work for a government contractor and really just looking to get out of that, would much rather-

Cody Hofhine:
[crosstalk 00:02:57] looking to be good.

Andrew Williams:
Yeah. And sooner rather than later. I mean I can do the work. My company has been very good. They treated me very well. It’s provided well for my family, but I just don’t really enjoy it. And so I’m really looking to get into something else, something that provides more financial freedom, more time freedom, more opportunities for my family and I, and would really just like to kind of expand and go in a different direction than… Read Rich Dad, Poor Dad, I think kind of like a lot of other people and…

Cody Hofhine:
Sure.

Andrew Williams:
…really kind of got the real estate bug and my dad has had some rental properties and still does and so just really kind of saw real estate as an opportunity to make that work and I found Wholesaling Inc, did some research and joined up so.

Cody Hofhine:
I love it, man. Well, there you go, guys. This is the background. What I want you to understand when you’re listening to Andrew speak today is Andrew is going to share things that are probably going to be just reality for many of us. Here he is working 9 to 5 and now this may not be the case for everyone, but he’s looking at it already thinking, “How do I, at some point, leave corporate America and be able to do this full time?” Which I think is awesome. But maybe some of you were thinking the exact same thing. You have a job, but maybe you’re looking to get into real estate full time so maybe you’ll find some just things that will resonate with you during this podcast, which I hope you do. So let’s break down now, Andrew, what it is you did to find your deal. Let’s go right to it.
Tell them what you were doing and what you’re typically doing. I guess we were talking beforehand. We talked about just for those to kind of give some background to this, how you have to have a cash buyers list. There’s people on the sidelines that want to buy these deals from you when you find these off market deals at 40, 50, 60 cents on the dollar, you need to have cash buyers that are being like, “Yes, I want this deal.” That’s part of how you can exit on these deals. And so tell the process you were doing to come across this deal.

Andrew Williams:
So that’s probably one of the very first lessons, first modules that we go over in the tribe is, “Hey, start building up your cash buyers list. Start building that network.”

Cody Hofhine:
So you can kind of get some contents. How big of a cash buyer’s list are you supposed to have? What’s a good number to have so that if people are listening, they’re like, “Okay, I need cash buyers. How many should I have on my list?”

Andrew Williams:
Yeah. So I think the goal that we kind of… The bar is 150 and obviously though I would say the more, the better, and I’m pretty new, but I would say don’t ever be satisfied with where your list is. Keep adding, keep adding and 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 so a hundred percent. So that’s what I was doing when I was actually came across… I came across this guy last October, November. I was working on building. I’d pulled the list from ListSource and I was just cold calling it and then trying to find buyers and I came across this guy and he was like, “Well, I’m not actually looking to buy, but I have one I’m looking to sell.” Oh. Okay. I was like, “Well, I have… I don’t know. I think I maybe had 20 or 30 buyers on my list at that point.” I’m like, “Well, I’ll go see this guy. I actually called Steve Lee who’s over in Dayton…

Cody Hofhine:
Yeah.

Andrew Williams:
I think, so shout out to him…

Cody Hofhine:
Yep.

Andrew Williams:
…for some help and advice that he gave me. Appreciate that.

Cody Hofhine:
Well, I want to slow this down for two seconds. I think this is killer. Here we are, we’re building a cash buyers list. You’re just sitting there doing exactly what you need to do. I’m building a cash buyers list and you’re 30 cash buyers in. You call a cash buyer and find out that this cash buyer sounds like now a motivated seller and you’re just like, “Wait a second.”

Andrew Williams:
Exactly.

Cody Hofhine:
“Wait a second. I haven’t come to these modules yet. I’m just supposed to build a cash buyers list. What the heck’s going on?”

Andrew Williams:
Yep.

Cody Hofhine:
I want you to walk people through this because I think what you’re doing is so good. All you were doing is just taking imperfect action. You had no idea what you’re going to do. You had no idea the outcome that was going to be by building a cash buyer’s list. You had no clue of this. All of a sudden, you get this curve ball thrown at you. You have an individual that’s now not a cash buyer. He’s now a motivated seller. And at this point, you probably didn’t even have much experience to no experience on, “Oh, no. Oh, I wasn’t expecting this.” What do you do? How were you able to navigate through this? Because I think there’s some gold sitting in this story that people could listen to because I think too many times, we build a perfect plan, realizing there is no perfect plan. You just take imperfect action. So kind of walk us through that and some of the feelings you were going through.

Andrew Williams:
Oh no, it was definitely a curve ball. And I was just like, “Okay, well, do you think I can come take a look at it?” And he’s like, “Yeah, sure.” I was like, “Okay.” So I was like, “I have no idea what I’m doing.”

Cody Hofhine:
Do you [crosstalk 00:08:04] frantically and start looking through the whole course like what video can I hear you watching?

Andrew Williams:
Yeah. I was like, “Okay, I’m jumping ahead a week here and okay, where do I go? And what do I say?” And so I scheduled a time with him and I actually called Steve and I was like, “Hey, what do I do?” And he gave me some pointers. So I went out and I met with him, miserable day, pouring down the rain, cold. This was a house that he had purchased earlier last year and he was renting it and there was a guy that was getting ready to move into it so the tenants were there. We went out. He gave me a tour of the house and we just kind of talked. We went out at a detached garage and we probably just went out afterwards and spent 15, 20, maybe 30 minutes just talking, building some rapport with him. He was like, “Hey, do you want to go talk numbers?” So we drove to McDonald’s and just sat. We went in and sat down and we just kind of started talking and he was kind of pressing me for what my offer was going to be and I had no knowledge of the area-

Cody Hofhine:
I see. Did you have any clue at all? Were you like…

Andrew Williams:
No.

Cody Hofhine:
“Oh, I know that these homes sell for X amount of dollars so I can only offer is now.” Or you just like, “No, I have no idea so I’m just going to just throw out a number.”

Andrew Williams:
I had no idea. I had seen on Zillow where he’d purchased it for 69 or 70, if memory serves me correctly, so I knew, and at the time, the market obviously was different than what it is right now. So I offered him 50 for it and he was like, “No, I can’t take that kind of hit on it.” I was just like, “Okay.” I didn’t really have an answer to his objection. He was just ready to sell it. He was-

Cody Hofhine:
Here’s the thing I love, there’s so much good here that I have to point out. First and foremost, you knew on Zillow, he bought it for more than you made the offer. I think this is crucial. So many times when new people are getting into this, they feel like, “Oh, this guy would never sell at a discount more than what he bought it for so I’m just going to offer him the 69 that he spent.” And you did it. You just said, “50.” You just anchored a low price. You threw it down there. And he was like, “Oh, I can’t do that.”

Andrew Williams:
Yeah.

Cody Hofhine:
There’s so much value in what you just shared because I don’t think naturally people will want to do that. Naturally, people are scared to go low or to say a price. You just did it. Now keep going. He says, “No, that doesn’t work.” Did you just start bending your price or did you just hold firm?

Andrew Williams:
Yeah, I just was like, “Okay.” I didn’t counter with a higher number because I really didn’t know what an investor was going to pay for it. I really had no idea what the property was actually worth other than I saw he had paid about 70 for it and I was offering him 50 so. He said, “That’s not going to work.” And I said, “Okay.” We were maybe in McDonald’s five minutes and I left and I just said, “Okay, well, if something changes, give me a call.” And so I think I followed up with him probably twice.

Cody Hofhine:
Okay.

Andrew Williams:
I just called and left a message. He never called back or anything. And again, this was last October, November. This was six months ago.

Cody Hofhine:
Yep.

Andrew Williams:
And so I never thought anything of it. And then out of the blue, my phone rings and I answer it and it’s him. And this was in end of April, mid-April this year. And he calls me up and he says, “Hey, this is Bruce. Were you still interested in maybe coming to take a look at my house?” Basically, what had happened was when the whole COVID-19 thing hit, he had some health complications and was for lack of better term, basically just kind of on home confinement due to his health issues.

Cody Hofhine:
Yeah.

Andrew Williams:
And what had happened was he had signed a lease with a tenant. The tenant had left and some of the tenant’s friends had moved in so the tenant left the beginning of December. So for December, January, February, March, and April, he had not received any rent money for the property and there were people there and they were paying. They had managed to scrape enough money together to pay the utilities but they weren’t working and they were just living in the house rent-free.

Cody Hofhine:
Wow.

Andrew Williams:
And…

Cody Hofhine:
So things changed drastically.

Andrew Williams:
Yes.

Cody Hofhine:
Not just health but then all of a sudden, he has tenants that aren’t doing anything.

Andrew Williams:
Correct.

Cody Hofhine:
Okay. Okay.

Andrew Williams:
So he says, “I need to sell this.” He’s like, “I need it gone.” And I said, “Okay.” So he put me in contact with… He actually talked with the tenants and told them I was going to be coming, taking a look at the property so I went back, went through the house again, took some pictures and we had some conversation, but long story short, I said, “There’s a real big problem is people don’t want to buy a house with people living in it that aren’t paying rent.” I said, “That’s a problem. That’s going to be a really big deal.”

Cody Hofhine:
Yep.

Andrew Williams:
And I said, “No one’s really going to want to take on that responsibility.” It used to be a duplex and it was now… He was using it just as like a single family but if you had done some modifications to it, it could have been a duplex, but there’s washer and dryer hooked up on the second floor that had leaked into the kitchen below so there was a water leak. There was an above ground pool in the back and this is in the city so there’s real small yard. The pool basically took up the whole backyard, but it was just old and nasty and…

Cody Hofhine:
Wall the wall pool.

Andrew Williams:
Pretty much. Yeah. It needed drained and hauled out of there. It was in bad shape. The structure…

Cody Hofhine:
Yep. So a lot of deferred maintenance was done to the property.

Andrew Williams:
Structurally, it was good, but there was the leak and then the floor needed redone and just some other stuff. So it needed a fair amount of work.

Cody Hofhine:
Yeah. Yep.

Andrew Williams:
And anyway, we came to terms. I offered him 20,000 and he accepted.

Cody Hofhine:
So the first time was at 50.

Andrew Williams:
Yep.

Cody Hofhine:
Three, Four, five months later, he comes back, needs to sell. You get it at 20,000.

Andrew Williams:
Correct.

Cody Hofhine:
Holy cow. So I want to point out just one thing to those listening. Things change. We have people that we call and they’re like, “Nope, Nope, Nope. Doesn’t work. Doesn’t work. Doesn’t work.” And time can change that. So I want you to understand, if you’re someone that’s already in the business and you’re listening to this podcast, right? What can I pull from this? The biggest gold nugget that you could pull from this as of this moment is the fact that follow up, follow up, follow up, because things change. This would be something that I would tell each one of you to do is look at your current database, look at your CRM and I would do a followup blast with anyone and everyone you’ve talked to in the past six months because beings change and things change drastically.
And there’s people that need your help. There are people that are in a situation where they could use an honest, good heart, sincere individual to come and help them out and be a solution or at least attempt to be that solution. And this is a perfect example, what Andrew’s sharing here is 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 just needed to get rid of it. You get the home under contract. So now we’re to speed, what did you do from here?

Andrew Williams:
So I got it under contract and I went, I got more pictures and I put my… Which I’m like, “Okay, well now what do I do?” I had to send this out to my buyers. Well, then I had to figure out so I had to go to Mailchimp and set that up and I had to put description of the property and I had to put the pictures on Google Drive and create a link so that people could go on and look at the pictures and get that sent out. Well, I sent it out. I actually talked to one of my cash buyers and I said, “Hey, I have this property. Do you think you might be interested in it?” And he was like, “Yeah, maybe.” So I sent it out. Well, I only had two people respond so I sent it out at 37,500 because at this point, I had done… The ARV for this was like 80 to 90, depending on how-

Cody Hofhine:
So ARV meaning after repair value. Once it’s all fixed up, 80 to 90,000.

Andrew Williams:
Yeah.

Cody Hofhine:
Okay.

Andrew Williams:
So if someone were going to buy it, but it was definitely a rental-like type property. It wasn’t really a candidate for a flip, but definitely like a rental. And so I put it out for 37,500. I only had two people respond to it and they told me, “Well, I’m not interested at that price, but if you don’t get any offers, let me know.” So I’m like, “Crap, and this isn’t good.” So I sent it out, I think, on a Wednesday. I had an open house scheduled on Saturday. I had a two hour window.

Cody Hofhine:
An inspection period.

Andrew Williams:
An inspection period. And I said, “Okay, this is when you can come take a look at it.” So Thursday and Friday, I am like scram. I’m like, “I need more cash buyers. I’m not going to move this deal.”

Cody Hofhine:
Yeah.

Andrew Williams:
“I’m going to be stuck with this.” Well, Friday morning, literally five in the morning, I’m down here in my basement trying to find cash buyers. And I call this lady who lives, probably within an hour of here and I said, “Hey, I’m a wholesaler. I live in North Canton. I have a property under contract, you think you might be interested in buying?” She said, “Well, no, but my sister actually might be interested. She lives out of state.” I said, “Okay. Well, I’m having an open house tomorrow. If you’d like, you’re welcome to come.” She’s like, “Okay.” So 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.” So this is the day before the open house or the inspection.

Cody Hofhine:
Yep.

Andrew Williams:
So Saturday comes and I had her and her husband, another guy, he and his partner came, then they were looking for a fix and flip. And then I had another guy that came that owns a bunch of rentals in the area and then I had another guy and his partner and they said, “No, it’s not for us.”

Cody Hofhine:
Yep.

Andrew Williams:
So the one guy that came and looked ended up giving me an offer for 15. And I was like, “Oh. Shit.”

Cody Hofhine:
Oh. That’s five [inaudible 00:18:29].

Andrew Williams:
So I told everybody, I said, “Send me your highest and best offer.” In the email, I said, “The buyer is… I need a $2,500 nonrefundable earnest money deposit. The buyer’s going to pay the closing costs. Blah, blah, blah.” The inspection was Saturday. And I said, “Send me your highest and best by noon on Monday.”

Cody Hofhine:
Yup.

Andrew Williams:
Well, at 10:00 that morning, the lady I talked to Friday, who said her sister was interested, said, “We’d like to offer you 30,500.” And I was like, “Praise the Lord.”

Cody Hofhine:
Wow. Wow. So you throw up these Hail Marys. Yet more gold nuggets to mention. Everyone listen to this, do not give up. Do not just simply cancel contract. Work, work, work, work, work, work through it. He was down in his basement, throwing Hail Marys. I got to add cash buyers. I got to add cash buyers. [crosstalk 00:19:22]

Andrew Williams:
Yeah. Exactly.

Cody Hofhine:
…this cash buyer. This is phenomenal. So if I did the math right, you had it in the contract at 20. You sold it for 30,500.

Andrew Williams:
Yep.

Cody Hofhine:
Where you were able to make $10,500. Is that correct?

Andrew Williams:
That is correct.

Cody Hofhine:
Bro, you know what’s coming, right?

Andrew Williams:
Oh yeah.

Cody Hofhine:
This is coming. Andrew, you ready?

Andrew Williams:
Yeah.

Cody Hofhine:
All right. Wow. There we go, man. You get the victory bell rang for doing an incredible deal, an incredible job where you’re able to serve this individual, but more importantly, persevere through this whole experience, that you were able to just keep working, keep working, keep working. You mentioned a few things that I just want to follow up with that I thought was solid as well. You mentioned that there were other tribe members, a community that you could reach out to you. How can this even be?

Andrew Williams:
[crosstalk 00:20:18].

Cody Hofhine:
And I think that’s crucial. The crucial is when you’re like, “Oh man, what do I do?” Sometimes that support system helps. And that’s another thing that I would say to anyone out there, whether you’re part of the tribe or not, be part of a community that can buoy you up, support you, build you and help you along the way. And I think that’s what helps every one of us. And so you had so much value to give in this. And I know our time is short on this, but I do always, first and foremost, want to congratulate you. That is so amazing. And second of all, this now went from faith to fact. It’s now the point where you are like, “I can do this. I’ve done this. I know what it feels like. I’ve tasted it.” It’s going to give you so much more confidence. Do you feel like moving forward, it’s like you are just immovable? You’re unshakable. You’re just going to move forward and just crush it or what does your future look like for you?

Andrew Williams:
Yeah, no, I definitely have a lot more confidence at this point. I actually had to cancel a contract this past week. I have another deal that actually ended up falling through last week, but then I have a property under contract that I’m going to have an inspection for next week. And I think that’s definitely going to be a good deal. And then I have another lead that I think could be an even bigger deal than what I just did.

Cody Hofhine:
Fantastic.

Andrew Williams:
So things are definitely moving forward.

Cody Hofhine:
Well, that 9 to 5 is going to be nervous when you get a phone call coming in soon and saying, “I’m done. I’m done.”

Andrew Williams:
Yep.

Cody Hofhine:
Fantastic. Andrew, thank you so much for sharing your story with us today and sharing basically, your case study of what you did to do a deal. I always end the podcast with two questions. First is, what’s a good book that you’re reading right now that’s just the game changer?

Andrew Williams:
So I feel like I’m kind of drinking out of a fire hose so I’m reading a book called Getting Things Done by David Allen and it’s just kind of about organization and setting priorities, getting things organized and how you can accomplish more with less stress.

Cody Hofhine:
Awesome.

Andrew Williams:
So that’s what I’m going through.

Cody Hofhine:
Awesome. And then last question, is there anything you’d do differently looking back, knowing what you know now?

Andrew Williams:
Yeah, I think I really got held up on that whole, “I have to have 150 buyers before I do any kind of marketing really was.” And I think you need to get buyers. I don’t want to minimize the importance of that, but I would probably work harder at that, but I would also probably take more action on trying to find a deal in the meantime as well. Don’t just get so caught up on, “I have to get this step before I move on to the next step.” Just keep going and keep working at it. Just fail forward. And, like what you say, massive imperfect action. Just…

Cody Hofhine:
I love it.

Andrew Williams:
…keep after it and persevere.

Cody Hofhine:
I love it. I love it. Well, Andrew, thank you so much for being on the podcast today. I appreciate your time and I want you to get out there so that you can keep doing deals and then maybe we’ll have to do another recap and do another podcast next time where we’re updating on all the new deals that you’re doing here in the near future.

Andrew Williams:
Yeah, that’d be awesome.

Cody Hofhine:
Okay, brother, well, rhino nation, you just listened to an incredible podcast where Andrew just broke down the things that he did so he could get this deal. I hope you took notes and I hope you see within your own self the action you must take today so that you can get out there and do your first deal or your 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 and begin to have the conversation and see if it is the right fit. If so, we may just invite you to be part of this elite group so that you can just keep moving forward in accomplishing the goals that you want to accomplish and really make 2020 the year where things change drastically for you for the better. So thank you for joining us on today’s podcast. Take care and we’ll see each one of you on our next episode. Take care.

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