Posted on: July 21, 2020
WI 475 | 9-To-5 Job

 

Today’s awesome guest owns and manages 38 rental properties while keeping a full-time job. What’s even more impressive? He makes it look easy!

Billy Rochester is an incredible real estate investor from South Carolina. The loving husband and doting father of four is doing so well as a real estate investor, you never would have guessed he’s working full-time!

In this episode, Billy shared how he balances real estate investing and full-time work with utmost ease. Ever the go-giver, he also candidly shared many of the techniques that has allowed him to help others and get a decent return on his investments.

If you’re looking for guidance on how to effortlessly balance work, family life, and real estate investing, this episode is for you!

How to Generate $30k Per Month in Rental Income While Keeping Your 9-to-5

Episode Transcription

This interview here is going to blow your hair back. I have got somebody here that owns 38 properties. He is getting $30,000 in income from those properties, netting $21,000, and has a full-time job in South Carolina. He is a one-man show and an incredible real estate investor. Let me start with this quote from the book Self-Made In America by John McCormack. It says, “Thinking and feeling do not produce action. Action produces thinking and feeling.” Mark Twain put it in another way, “Thunder is good, thunder is impressive, but lightning is what gets the job done.” Without further ado, bringing lightning to the show, I would love to introduce, from South Carolina, Mr. Billy Rochester. Billy, say hello to everybody.

Hey, guys.

Billy has been part of the Rhino Tribe and the TTP family for a long time. He has been incredibly supportive to anybody that has reached out to him locally. He had conversations with big people in the community like Max Maxwell and some of the people surrounding the areas that are close to him there in South Carolina. Billy, tell everybody about you. What do you do? What is your 9:00 to 5:00 job? What is your background? Why are you using real estate to build your financial freedom?

I started out slow in the real estate arena, built my first house, lived there a couple of years, sold it, and moved to another property. I told my wife if we could move several times during the first part of our marriage, we could pay for a house. The house we live in is about 4,500 square feet. We paid cash for it by moving from property to property. I’m a director of IT. That is what we do for our living. The money I have made from real estate, I have put in the new properties where one day I can kick back, retire, and get mailbox money.

You already are getting that. The first time that we had a conversation, I remember you telling me, “Wholesaling is great but I want to learn how to find all these discounted properties. I want to keep these properties and build the portfolio.” I was like, “Great.” Wholesaling doesn’t mean assigning deals. It means sourcing real estate opportunities. That is the formal version.

It means that you know how to find deals. That is what we talk about on this show and on the YouTube channel. If you want to check out this interview and see Billy’s face and my face, go to Brent Daniels – Real Estate on YouTube and check it out. It is worth the watch. Billy, how do you manage being an IT director and sourcing deals? It is just you. You don’t even have a VA.

I don’t have a big operation. The 38 properties seem a lot, but that is over 3 or 4 years of obtaining those. To become wealthy, you don’t have to do these $10,000 or $8,000 a month. Different people have different models, but my model is going to work for a living. I continued to do that. Every dime I make from either a flip, lease option, or owner finance, I put back into properties. Over time, that gives you the ability to get $1,000, then $2,000, and then $4,000 a month. Every two months or so, I can buy a new property with the proceeds that I get from my lease options. You get some of those.

Facebook has super cheap advertising. It’s the hybrid of paying for your real estate leads.

I got a check for $7,500 for someone moving in a property that the old guy moved out of. You get those proceeds as well. I take all of those and put them towards buying new properties until I get to the place where I am financially free forever. Because I have already made a good living now, my main concern is passing that on to my children. I have four children. If I could pass them $10,000 a month, that would be great.

Is the goal $40,000 a month?

That is my final goal.

That is the net goal because you are at $30,000 now, but you are netting about $21,000, so you need to double where you are at now. How many years did it take you to get there?

About four years. I don’t spend any of that money. I bought an $80,000 boat. Other than that, I have been pretty good.

This is like Rich Dad Poor Dad 101. This is the difference between buying liabilities and assets. You are taking not only the income that you are making from your work but also the income that you are getting off of these real estate deals. Are you doing any flips? Are you doing any wholesale deals? Is there some income you are pulling out of your real estate efforts and putting into your long-term financial planning?

I’m a jack of all trades. I have done all different models. I understand how to do most of them. My buying for a favorite is lease options. You can easily get rich with lease options, but that is on the sales side. I normally buy using cash. I have wholesaled a couple of properties and you gave me the courage to do that. That is the reason I decided to come on this call.

I do no social media. I don’t even have Facebook. When I joined your program and gave the Facebook thing, I had to get my brother to set up one. I have never logged on myself, but I logged on through with him. That is the model I use as far as all the different strategies. Sometimes, I will buy one and if it makes sense to do a lease option, I will do that. I have done a good bit of hotel. Many times, where most of you guys would do a wholesale, I will buy it cash and do the same exact things, except I will flip it on the MLS and get that model.

I haven’t borrowed anything. I don’t even own a credit card, which is a funny story because you need to own a credit card. I went to New York. I offered to let them freeze the amount of money to hold the card, but they would not let me rent a car. I have done some sub-to’s and different creative financing models, but most of them, I bought cash and whatever exit strategy that makes sense.

Everybody reading this is wondering and saying to themselves, “How do you find your deals?”

I have done all different kinds. I was a member of TTP so we have done some cold calling. When you buy cash, the realtors tend to bring you deals better than the wholesale type. I have got a good relationship with some realtors around the area. I found some deals that way and by word of mouth. You always want to be networking with people in the community. They didn’t at first, but they are starting to know now, “Call Billy if you got a house that you need some quick money on.” My main strategy initially was AdWords. I have done some Facebook. That is what I have done to get my properties but I have done all different strategies.

I love that you talked about being the guy in the community that people bring the deals to if they feel they need to get some quick cash. That is talking to people. It is having quality conversations, whether with a distressed property owner, a real estate agent, or people in the community. As long as you are being proactive, opening your mouth, talking to them, and letting them know, “I would love to help anybody out that you know,” they are going to start bringing deals to you.

WI 475 | 9-To-5 Job

9-To-5 Job: Wholesaling doesn’t mean assigning deals. It means sourcing real estate opportunities.

 

When you first started, it wasn’t a lot, but you have built up over the few years a reputation that says, “Billy has the cash. Billy will close these deals,” and because you are doing it, people are going to continue to bring you deals. For anybody reading, especially if you want to get deals from referrals, make sure that you are a person of your word. Make sure that if you are going to commit to a deal, it gets done.

It doesn’t matter if you assign it to somebody else, wholesale or buy it. Make sure that the deal gets done and you are good, honest, and smart with your numbers. Go out there. I’m sure there are random people that you talk to that you would have never thought would send you a deal, end up sending you an opportunity, and you are like, “I can’t believe that. That was a conversation we had years ago. “

If I go to a fishing tournament or walk into a convenience store, I hand a card to them and let them know I buy a house. That alone will get you deals. You have to constantly talk to everybody that you meet. You will think you are wasting your time. I did a few years ago and I got advice from great people like you. It is a snowball effect. Eventually, you are the guy in town that buys the places. You don’t necessarily have to have the cash yourself. With wholesaling, you are using folks who are going to buy that deal. When you network, you will find both the buyers and sellers that way.

You are doing Facebook AdWords, but you are not even on Facebook and you are a one-man show. How do you do that? You are confusing me. Are you running yourself? Do you have somebody that is smart at AdWords that sets everything up for you? Is it a family or a friend? Tell me about that.

I have a friend who has helped set up the Facebook piece and my brother is an IT director. He has helped with some of that. Initially, I have done AdWords with Google. I do know how to do that piece somewhat. The funny thing about this business is that you don’t have to know everything at all. When it comes to the marketing piece, everybody says, “We are marketers.”

I know nothing about marketing. I go to people like you. It is the best money that you spend because you learn in a few hours what it would take you years to learn. I’m part of Tom Krol’s program as well as TTP. I didn’t learn a whole lot from the wholesale side because I knew most of those things. I had experience and I would pay the money just to have your phone number.

The staff was there to learn but I was seasoned enough that I knew most of those things, but it did give me ideas. I took those ideas and worked with them. You can craft your own journey. I didn’t want to have 10 or even 3 VAs. I wanted to own a few properties and make it simple. I had a good living. My goal was to have a lifestyle where I didn’t have to work until I was 60.

I joined the Wholesaling Inc program in 2016 after 3 years of doing wholesale, not to learn wholesale but because I wanted to be around Tom Krol. Years later, I have been under his umbrella and in coaching. He has been a fantastic mentor. My income has exploded because you are around people doing more than you, exciting, and positive.

Being a giver is the biggest deal in real estate.

Let’s be honest. This is not a huge amount. This is not billions of people that are wanting to be real estate investors or wholesalers. It is a small group of incredible people around the country, and if you can surround yourself with the top, you become one of the tops. I love that, Billy. Why do you do lease options? You had talked long-term. You wanted to give this cashflow to your children. Don’t they have the option to buy it after a few years? How do you structure that so that you can get long-term? Do you keep refilling up the pipeline of new ones and is that your strategy?

When you know how to source deals, I would be a fool to quit that. Even when I retire, I’m going to teach my children, neighbor, and friends at church how to do that. We can lift those guys that are going out there and killing themselves. We want to be givers. The thing that drew me to Tom is I heard so much about him being a giver. I’m big at being a giver and I’m a religious person. I give to my church and poor people as well. I’m always going to source deals. Normally when I get a $100,000 property, I’m going to get $8,000 to $12,000 when they move in. That is number one.

On a $100,000 property around here, you are going to get somewhere between $900 and $1,200 a month. That is the money that I’m going to get forever. You got to be super careful about creating strategies because you want to make sure that you get your paperwork together. A property is going to stay in your possession for about five years. It has been my experience. Your goal is to try to help this young family to make sure that they do end up buying the property.

Let’s say you bought that property for $80,000 because you learned Brent’s concepts and know how to buy it cheaply. That property is going to sell for $120,000. I take the $120,000 and get to buy my wife some new Pathfinder Platinum with that $40,000 and buy me another that I sourced. I would keep refilling that as time goes by. It is not completely passive but it makes so much more than rentals over the long haul or the lifetime of the asset that it makes sense to do lease options.

I have had rentals and lease option tenants. There is no comparison. I have had four brand new ACs put in my properties for me for free by my tenants. When they call, I say, “Here is the guy who can put you a brand new unit for $4,000 in.” The lease option tenant to me is the way to go. I never get phone calls. During COVID, I had 37 checks. One guy didn’t pay. He had chemo. He was not going to pay regardless, but he called me. It lets me be a giver once again. I was able to help that guy and say, “I’m going to forgive a couple of months’ rent.” It puts you in a position to be able to help other people.

Let’s get everybody excited. Let’s break down and get into the nitty-gritty on whatever deal you want to talk about. You tell me.

I had a realtor call the deal that I’m doing. I don’t have 5 or 6 deals a month. It is a lot of people. I’m looking for a deal every month or two and the realtor brought it to me. She came in and she could not sell the house for the lady because it had some roof damage. I went in and talked to the lady myself. The realtor made a warm handoff.

She sat there while I made the deal and went away laughing like, “Why don’t I do this instead of being a realtor?” I went in and I bought that house. I paid $58,000 for it. I put about $12,000 in rehab. What I will do on that house is get a $15,000 down payment. I will sell it for $145,000 on a lease option and I will get $1,200 a month. Sometime in the next few years, I will get $140,000.

Let’s look at this. What did you buy it for?

I bought it for $58,000.

WI 475 | 9-To-5 Job

9-To-5 Job: As long as you’re being proactive with distressed property owners and letting them know, “I would love to help anybody out that you know,” they’re going to start bringing deals to you.

 

How much did you have to put anything into it?

I spent $12,000 on rehab.

You are into it for $70,000. What did you sell it for?

I haven’t sold it yet but that is the easy part. I will sell in a few days for $140,000.

Will you do that on a lease option?

I’m saying $12,000 but you can get anywhere from $10,000 to $15,000 for the person to move in.

You get $12,000 to $15,000 upfront. You are getting how much in rent?

$900 to $1,200.

Let’s call it $1,000 to make it easy. That is another $12,000 per year. Let’s say a minimum of 3 years, but most likely 5 years. You are anywhere from $36,000 to $60,000 on rents that you got there plus you bought it for $70,000 and sold it for $140,000. This is anywhere from a $95,000 to over 6-figures deal in 5 years.

In any deal you get into, genuinely care about the people. Don’t try to get over on someone.

You don’t have to do very much to become rich for the lease option.

How did you find that deal?

A realtor provided it. She put the lease option tenant and I will pay her a full commission.

This agent knows you as their cash buyer. They have a property that maybe needs $12,000 worth of work. They don’t want to mess around with it. They want to get it done as quickly as possible, so they bring it to you. How long have you known this agent?

I have known her for a couple of years. It was a deal for this particular incident the person in the property wasn’t going to lease. She was going to throw that away. She is going to get a full commission on something she was going to throw away. I should probably make more contacts with realtors because I have got several good deals doing that. When she gets that big check, she will be excited and find me another deal.

It is essentially adding free money to them. Not only that, it adds an income stream to them. Now, they know all those properties they didn’t want to touch or the people don’t want to lease or mess around with it that they come across throughout the years. They can bring it to you and get paid the $2,100, $5,000 or $10,000 and make an extra $10,000, $15,000, or $20,000 as a real estate agent doing nothing but introducing you to somebody that doesn’t want to sell their property on the market.

This happens every single day. If you make a strong effort to reach out to the real estate agents in your market and be a good and great client for them, they will bring you deals every single month. If you get enough of them, you can build a whole career off of that. Do not sleep and be intimidated by talking to real estate agents. They are part of your team. You need to squad up with them.

I will give you a real good tip that I don’t know if I have heard a lot of people say that I have found for myself. When you are dealing with agents, deal with the ones who are showing the houses. With a real estate agent, you have folks going out and finding listings. The folks that are showing the houses are more likely than not going to bring you the deals. They are the hard workers. That is bad to say but I have found that they work harder for their money. They are going out and showing twelve different houses to get that buyer’s agent money. If you focus on that, you will get more deals brought to you.

Speak to somebody that is starting out in this. Maybe they have done wholesale deals but don’t own rentals. What are some general real estate investing advice that you would give anybody out there that is looking to either get started or start building up their rental portfolio?

Facebook has super cheap advertising. It is the hybrid of paying for your leads. If you get a list of cold calls, you are going to have to call a lot of people. Eventually, you are going to want a VA. If you do AdWords, you will get hot leads but they are very expensive. Facebook is going to be in the middle. You will get a lot of leads but it is super cheap. You will have to weed through more leads than you would with AdWord.

WI 475 | 9-To-5 Job

9-To-5 Job: If you make a strong effort to reach out to real estate agents in your market, they will bring you deals every single month. If you get enough of them, you can build a whole career off of that.

 

If I had $500, I would probably drop it on Facebook. You are almost certainly going to get a deal. The other thing is, if I were paying for leads, I would probably work with somebody in my area that helped me get that first deal. Looking back, I have probably lost $1 million or $2 million worth of deals that I wished I would have gotten to know more earlier on.

If people want to reach out there in South Carolina or North Carolina, say hello to you, or want to be in your world a little bit, what is the best way for them to reach out to you?

I don’t have Facebook so you can email me at HonestHomeSales@gmail com. I look at that every day so I will respond to that. This is my first interview anywhere. I don’t have a lot of people weighing on me except locally. Hopefully, this won’t blow me up. I have Instagram. I don’t do it myself but my brother checks it for me. It is @HonestHomeSales as well.

HonestHomeSales@gmail com is the best way directly and @HonestHomeSales on Instagram. It will get filtered through his brother because Billy is not messing around with social media. He is just getting deals from it. He is talking to people around his community and getting referrals. He is the honest home investor. People are going to bring opportunities to him. They would never bring him opportunities if they didn’t know what he was doing. It doesn’t matter if he is going to a fishing tournament or shopping. He is talking to people every single day letting everybody know what he does.

Being a giver is the biggest deal. I name my business Honest Home Sales because I want to be genuine. I was able to save a pastor’s home, and it was a great lead. I was going to make $40,000 while I was sitting at the table. The guy was a 70-year old, a Black pastor up in Greenville. He had a heart attack and got behind on his bills. I said to him, “What are you going to do next?” He said he was going to rent. I said, “You are going to rent?” He had been paying on his property for a couple of years. He is serving his community and he is a great guy.

I said, “How about we do this? You go to your deacon board, you ask them for half the money on the back pay, and I will max the other half.” I’m not doing that as a pat on the back to Billy. Someone made good opportunities to get where I’m at as well. I grew up in a single white trailer with a single mom. The thing is if you will genuinely care about the people that you deal with, it seems the deals fall. If I had more advice to give over, I genuinely care about the people. Don’t try to get over on someone.

It is about solving problems. The only way you can last in this business, build it quickly, and get those referrals from people that are going to trust you to get the job done is if you are out there to serve the community. You hit it right on the head, Billy. You are an extreme example of that. I’m so excited that I was able to pull you out and get you on here for the first time ever. People are being introduced to you and I appreciate it. You are a shining light in our industry. Thank you.

If you are interested in joining the most proactive group in real estate investing, it is the TTP Program. It is the TTP family. Go to WholesalingInc.com/TTP. Check it all out. If it feels good in your gut, sign up for a call. You will either be talking to me or my right-hand guy. I look forward to that. Billy, thank you so much. That was incredible. To everybody out there, as always, I love you and I encourage you to talk to people. See you.

 

Important Links:

About Brent Daniels

WI 485 | Simple Followup MethodBrent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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