Posted on: July 21, 2020

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!

Key Takeaways

  • His background and his 9-to-5 job
  • Why he chose real estate to build financial freedom
  • What wholesaling truly is
  • How he balances having a job and sourcing deals
  • What his main goal is
  • The difference between buying liabilities and buying assets
  • Why lease options is his favorite
  • How he finds his deals
  • The marketing strategy he uses to find his deals
  • Why it pays to talk to everyone you meet
  • Breakdown of a deal he did
  • Real estate investing advice he’d give to newbies
  • Best way for people to reach out to him

RESOURCES:

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

Subscribe to Wholesaling Inc

Episode Transcription

Brent Daniels:
Welcome everybody to the Wholesaling Inc podcast, America’s number one podcast for new real estate investors, where we know that finding discounted properties is the most proven path to financial freedom. I am your host, Brent Daniels, and I am telling you if I can do it, so can you. So let’s get started. I want to start this. This interview here is going to blow your hair back because I’ve got somebody on here that owns 38 properties. He’s currently getting 30,000 in income from those properties, netting 21,000, but he also has a full-time job in South Carolina and he is a one-man show, and he’s an incredible, incredible real estate investor.
But let me start off with this quote right here. And this is from the book Self-made in America by John McCormack. Okay. It says, “Thinking and feeling do not produce action. Action produces thinking and feeling.” Mark Twain put it another way, “Thunder is good. Thunder is impressive, but it is lightning that gets the job done.” So without further ado, bringing lightning to the Wholesaling Inc podcast, I would love to introduce from South Carolina, Mr. Billy Rochester. Billy, say hello to everybody.

Billy Rochester:
Hey guys.

Brent Daniels:
A man of a lot of words. Here we go. Let me tell you, this is exciting. 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 has even 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. So Billy, tell everybody about you. What do you do? What’s your 9:00 to 5:00 job? What’s your background? And why are you using real estate to build your financial freedom?

Billy Rochester:
Yeah, So I started out sort of slow in the real estate arena, basically built my first house, lived there a couple of years, sold it, moved to another property. I’ve told my wife, if we can move several times during the first part of our marriage, we could have a paid-for house. So we paid for our, I think the house we live in now is about 4,500 square feet and we paid cash for it, by moving from property to property.
What I do day-to-day is I’m a director of IT. And that’s what we do our living from. And then all the money I’ve made from real estate, I’ve just put in the new properties, where one day I can just kick back and retire, and get what you call mailbox money.

Brent Daniels:
And you already are. I mean you already are getting that. I mean it’s interesting. The first time that we had a conversation, Billy, I remember you telling me, “Hey, listen, I think wholesaling is great, but I want to keep these. I want to learn how to find all these discounted properties, and I want to keep these properties and build a portfolio.” And I was, “Great.” Wholesaling doesn’t mean just assigning deals. Throw that away anybody that’s listening. Wholesaling means sourcing real estate opportunities. That’s the formal version. Really it means that you know how to find deals, and that’s what we talk about on this podcast, it’s what we talk about on the YouTube channel.
By the way, if you want to check out this interview and see Billy’s face, see my face, put a face to a voice, go to Brent Daniels Real Estate on YouTube and definitely check it out. It’s definitely worth the watch, but Billy. So how do you manage being an IT director and being able to source deals? Because, like you mentioned before we got on, before we started recording, it’s just you. You don’t even have a VA, right?

Billy Rochester:
So the way I balance it is I don’t have a big operation. 38 properties seem like a lot, but that’s over three or four years of obtaining those. To become wealthy, you don’t have to do these 10 or eight a month or whatever. And different people have different models. But my model is I was going to work for a living and I continued to do that and every dime I make from either a flip or a lease option or owner finance or whatever, I just put back into properties. And over time that basically gives you the ability to where it starts out you’re getting 1,000 a month and then 2,000 a month and then 4,000 a month. And now, every two months or so, I can buy a new property with the proceeds that I get from my rentals, or at least I don’t do rentals but I do lease options.
And so you get some of those. I actually had got a check yesterday for $7,500 for someone moving in of a property that the other guy moved out. And so you get those proceeds as well. I just take all of those and put towards buying new properties, till I get to the place where I am financially free forever. And my main concern, because I already made a really good living now, is passing that on to my children. I have four children. So if I could pass them on 10,000 a piece a month, then that’d be great.

Brent Daniels:
So the goal is 40,000 a month.

Billy Rochester:
That’s my final goal.

Brent Daniels:
And that is the net goal because we had talked, and I had mentioned, you had told me before that you’re at 30K now, but you’re netting about 21. And so you just need to essentially double where you’re at now. And it took you how many years to get there?

Billy Rochester:
About four years.

Brent Daniels:
Four years.

Billy Rochester:
But remember, I don’t spend any of that money. So I did buy a boat, a $80,000 boat. But other than that, I’ve been pretty good.

Brent Daniels:
This rich dad, poor dad, 101. This is the difference between buying liabilities and buying assets. You’re taking not only your income that you’re making from your work, your 9:00 to 5:00, your job, but also the income that you’re getting off of these real estate deals. Now, are you doing any flips? Are you doing any wholesale deals? Is some income that you’re pulling out of your real estate efforts and putting into your longterm financial planning?

Billy Rochester:
Yeah. I’m sort of a Jack of all trades. I’ve done pretty much all the different models. I understand how to do most of them. My buying far favorite is lease options. You can easily get rich with lease options. And that’s on the sales side. And so I normally buy them cash. I have wholesaled a couple of properties. You gave me the courage to do that and that’s the reason I decided to come on this call. I do no social media. I don’t even have Facebook.
So when I joined your program and you gave the Facebook thing, I had to get my brother to set up one and [inaudible 00:07:27] I’ve never logged on myself, but I locked on with him. So that’s how that I don’t use the social media whatsoever. So yeah, I basically take those. That’s the model that I use as far as all the different strategies.
Sometimes I’ll buy one and if it makes sense to do a lease option, I’ll do that. I’ve done a good bit of whole tail. So a lot of times where most of you guys would do a wholesale, I’ll just buy it cash, do the same exact thing, except for I’ll just flip it on the MLS and go that model. I haven’t borrowed anything. I don’t even own a credit card. I hadn’t in 15 years, which is a funny story about that. You need to own a credit card because I went to New York and I offered to let them freeze the amount of money to hold the card, but they would not let me rent a car. [crosstalk 00:08:18] But anyway, I’ve done some sub twos, some different creative financing models, but most of them I just bought cash and then whatever exit strategy that makes sense.

Brent Daniels:
Yeah. And I think everybody is wondering and listening to this and watching this and they’re saying to themselves, “How does he find his deals?” How do you find your deals?

Billy Rochester:
So I’ve done all different kinds. Obviously I was a member of TTP. So we’ve done some cold calling. When you buy cash, the realtors tend to bring you deals better than wholesale [inaudible 00:00:08:49]. So I’ve got a good relationship with some realtors around the area. So I found some deals that way. Obviously word of mouth. You always want to be networking with people in the community, and everybody now knows, they didn’t at first, but then they’re starting to know now, “Hey, call Billy if you got a house that you need some quick money on.” My main strategy initially was ad words. I’ve done some Facebook and that’s what I’ve done recently to get my properties. So all different strategies.

Brent Daniels:
Got it. And I love that you talked about being the guy in the community that people bring the deals to if they feel like they need to get some quick cash. I mean that is talking to people. I mean it’s just having quality conversations, whether it be with a distressed property owner, whether it be with a real estate agent, whether it be with people in the community, as long as you’re being proactive and your opening your mouth and talking to them and letting them know, “Hey, listen, I would love to help anybody out that you know.” They’re going to start bringing deals to you. And I assume when you first started, it wasn’t a lot, but now you’ve built up over the last few years, a reputation that says, “Hey, Billy actually does have the cash. Billy actually will close these deals.” And because of that, and because you’re actually doing it, people are going to continue to bring you deals.
So anybody listening, especially if you want to get deals just from referrals, make sure that one, you’re a person of your word. Make sure that if you’re going to commit to a deal that it gets done. I don’t care if you assign it to somebody else or whole-tail it, or buy it, or whatever else, make sure that the deal gets done. So make sure that you’re good and honest and smart with your numbers. But also just go out there. I mean I’m sure that there’s random people that you talk to Billy, that you would have never thought would send you a deal, end up sending you an opportunity, and you’re, “Oh my gosh, I can’t believe that. That was a conversation we had a couple of years ago.”

Billy Rochester:
So if I go to fishing tournament or I’ll walk into a convenience store, I’m handing a card to them and let them know I buy a house. And that alone will get you deals. Like you said, have to constantly talk to everybody that you meet. And eventually, you’ll think you’re wasting your time. I did four years ago, and I got advice from great people like you. It’s like a snowball effect. Eventually you’re the guy in town that buys the places and you don’t necessarily have to have the cash yourself. I mean with wholesaling, you’re using folks out there like me, who’s going to buy that deal. But for certain, when you network, you’ll find both the buyers and the sellers that way.

Brent Daniels:
Got it. And you said that you did Facebook ad words, or you’re doing Facebook ad words, but you’re not even on Facebook. So, and you’re a one man show. How do you do that? I mean you’re confusing me. Are you running yourself? Do you have somebody that’s really smart at ad words that sets everything up for you? Is it a family? Is it a friend? Tell me about that.

Billy Rochester:
I have a friend that has helped set up the Facebook piece and then my brother is an IT director as well, so he has helped with some of that. So initially I had done ad words with Google, and then I do know how to do that piece of somewhat. This is the funny thing about this business. You don’t really have to know everything at all, for sure. When it comes to the marketing piece, everybody says we’re basically marketers. I know freaking nothing about marketing. I go to people like you, and it’s 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 the Tom Krol’s program as well as TTP, and I honestly didn’t learn a whole lot from the wholesale side because I knew most of those things. I had experience. It’s the audience. I would pay the money just to have your phone number because given the encouragement that you have, I mean the stuff that was obviously there to learn, but to me, I was seasoned enough that I knew most of those things, but it did give me ideas. And so I’ve took those ideas and worked with them. And you can craft your own journey. I didn’t ever want to have 10 VA’s or even three VA’s. I wanted to own a few properties and make it really, really simple. And I had a really good living. My goal was to have a lifestyle where I didn’t have to work till I’m 60.

Brent Daniels:
I love it. I love it. And you’re 100% right. I joined the Wholesaling Inc program in 2016 after three years of doing wholesale, not to learn wholesale, but because I wanted to be around Tom Krol. And now you look-

Billy Rochester:
Exactly.

Brent Daniels:
I mean four years later, I’ve been under his umbrella and the coaching, and he has been a fantastic mentor. And my income has exploded because you’re around people doing more than you. You’re around people that are exciting. You’re around people that are positive. And let’s be honest. This is not a huge amount. This isn’t billions of people are wanting to be real estate investors, or wanting to be wholesalers. It’s actually a small group of incredible people around the country, and if you can surround yourself with the top of the top of the top, you become one of the top. So I love that Billy.
So why do you do lease options? Because you had talked longterm. You wanted to give this cashflow to your children. Don’t they have the option to buy it after a few years? Or how do you structure that so that it makes sense so that you can get longterm? Or do you just keep refilling up the pipeline of new ones, and that’s your strategy? I think it’s fantastic. I’m literally asking selfishly.

Billy Rochester:
That’s a great question. Because number one, like you said, when you know how to source deals, I’d be a fool to quit that. So even when I retire, I’m going to teach my children how to do that. I’m going to teach my neighbor. I’m going to teach my friends at church. Because we can lift those guys that are going out there and killing themselves. And so we want to be givers. That’s the thing that really drew me to Tom is I heard so much about him being a giver and I’m big at being a giver. I’m a religious person. So I give to my church, but to poor people as well. And so being a giver is one of the things. So I’m always going to source deals.
So normally unless you get a hundred thousand dollar property, you’re going to get eight to $12,000 when they move in. So that’s number one. Then you’re going to get on a hundred thousand dollar property around here, you’re going to get somewhere between 900 and 1,200 a month. So that’s the money that I’m going to get forever. By the way, you got to be super careful about creative strategies because you want to make sure that you got your paperwork together. So normally a property is going to stay in your possession for about five years, 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. But let’s say you bought that property for 80 because you learn Brent’s concepts and you know how to buy it cheap, that property is going to sell for 120. And so I take the 120 and guess what? I get to buy my wife some sort of new Pathfinder Platinum or whatever, with that 40 go buy me another that I sourced.
And so, yes, I would keep refilling that as time goes by. It’s not completely passive, but it makes so much more than rentals make over the long haul or the lifetime of the asset that it just makes sense to do lease options. I’ve had rentals and I’ve had lease option tenants. And there’s no comparison. This year, I’ve had four. Four brand new ACs putting my properties for me for free by my tenants.

Brent Daniels:
Yep.

Billy Rochester:
So by the way, when they call, I say, “Here’s the guy. He can put you a brand new unit for 4K in. You just…” You set all that up for them. But, yeah. Lease option tenants to me is the way to go. I never get phone calls. And during COVID I had 37 checks. One guy didn’t pay. He had chemo. He was going to not pay regardless, but he called me. It lets me be a giver once again. I was able to help that guy and say, “Here, I’m going to forgive a couple of months rent.” And so it just puts you in a position to be able to help other people.

Brent Daniels:
I love it. I love it. And so let’s break down a deal. 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.

Billy Rochester:
So I had a realtor call, the deal that I’m currently doing. I don’t have the five or six deals a month like a lot of people. I’m looking for a deal every month or two months. The deal I’m doing now, the realtor brought it to me. I think she came in and she couldn’t sell the house for the lady because it had some roof damage. I went in and talked to the lady myself, the realtor just made a warm handoff. She actually sat there while I made a deal and went away laughing like, “Why don’t I do this instead of being a realtor?”
So I go in, I buy that house. I think I paid 58 for it. I put about 12 in rehab, and it should be done end of this week first of next week. And what I’ll do on that house is get probably a 15K down payment. I’ll sell it for 145 on a lease option, I’ll get 1,200 a month. And sometime in the next three to five years, I’ll get 140,000 bucks.

Brent Daniels:
So let’s look at this. So what did you buy it for?

Billy Rochester:
Bought it for 58.

Brent Daniels:
58,000. Did you have to put anything into it?

Billy Rochester:
Yeah. I think I spent 12K on rehab.

Brent Daniels:
So you’re into it 70K, right? And then what did you just sell it for?

Billy Rochester:
Well, I haven’t sold it yet, but that’s the easy part. It’ll sell in three days for 140.

Brent Daniels:
140. And you’ll do that on a lease option.

Billy Rochester:
Yeah. And you’ll get somewhere around. I mean I’m saying 12K, but you can get anywhere from 10 to 15 for the person to move in.

Brent Daniels:
Right. So you get 12 to 15 upfront. You’re getting how much in rent?

Billy Rochester:
Nine to 1200.

Brent Daniels:
Okay. Let’s just call it 1,000 to make it easy. So that’s another 12,000 per year. Let’s talk about let’s say minimum three years, but most likely, probably five. So you’re in anywhere from 36 to $60,000 on rent that you got there, plus you bought it for 70, you sell for 140. I mean this is anywhere from a 95 to a over six figures deal in five years.

Billy Rochester:
[inaudible 00:19:13] You don’t have to do very many to become rich for the lease option.

Brent Daniels:
Hold on a second. I love it. And how did you find that deal Billy?

Billy Rochester:
The realtor provided it. [crosstalk 00:19:29] the lease option tenant in, I’ll pay her a full commission.

Brent Daniels:
This agent just knows you as their cash buyer, and they have a property that maybe needs some work, it need’s 12K worth of work. They don’t want to mess around with it. They just want to get it done as quick as possible. So they bring it to you, right? How long have you known this agent?

Billy Rochester:
A couple of years, but it was a deal for this particular instance. The person in the property wasn’t going to list. So she was going to throw that away. So now she’s going to get a full commission on something she was going to throw away. I should probably make more contacts with realtors because I’ve got several really good deals doing that. For sure. And guess what? When she has that big check, she’s going to be excited and go find me another deal.

Brent Daniels:
Oh, 100%. And it’s essentially just adding free money to them. But not only that, it adds a income stream to them. Now they know all those properties that they didn’t want to touch, or the people don’t want to list, or they don’t want to mess around with it that they come across throughout the years, this year, in the next five years, the next 10 years, they can bring it to you and get paid the 2,100 or 5,000, or 10,000, or whatever it is, and make an extra whatever 10, 15, 20,000 this year as a real estate agent doing nothing but introducing you to somebody that doesn’t want to sell their property on the market.
I am telling you guys, this happens every single day. I am telling you. If you make a really strong effort to reach out to the real estate agents in your markets and really be good to them, and really be a great client for them, they will bring you deals every single month. And if you get enough of them, you literally can build a whole career off of that. So do not sleep, do not be intimidated by talking to real estate agents. They are definitely part of your team. You need to squad up with them.

Billy Rochester:
I’ll give you a real good tip that I don’t know that I’ve heard a lot of people say, but that I’ve found for myself. When you’re dealing with agents, deal with the ones who are actually showing the houses. See, normally with a real estate agent, you have folks that are basically they’re going out and finding listings. The folks that are showing the houses are more likely than not going to bring you the deals. They’re the harder workers. That’s bad to say, but I’ve found that they work harder for their money because they’re actually going out and showing 12 different houses to get that buyer’s agent money. And so I’ve just found that if you focus on that, you’ll get more deals brought to you.

Brent Daniels:
I love it. So speak now, Billy, to somebody that’s starting out in this, maybe they’ve never done a deal, maybe they’ve done wholesale deals, but they don’t own rentals. What’s some advice, just some general real estate investing advice that you would give anybody out there that’s looking to either get started or start building up their rental portfolio?

Billy Rochester:
So Facebook is super cheap advertising. To me, it’s sort of the hybrid of paying for your leads. So if you get a list, a cold call, you’re really going to have to call a lot of people. Eventually you’re going to want a VA. If you do ad words, you’re basically going to get really hot leads, but they’re very expensive. Facebook is going to be sort of in the middle. You’re going to get a lot of leads, but it’s super cheap, but you’re going to have to weed through more leads than you would with ad words.
So if I had 500 bucks, I’d probably drop it on Facebook. You’re almost certainly going to get a deal. And the other thing is, 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’ve probably lost a million or two worth of deals that I’ve wished I would have got had I known more earlier on.

Brent Daniels:
Sure, sure. Awesome. And if people want to reach out, they’re in South Carolina, they’re in North Carolina, they just want to reach out and say hello to you, maybe they just want to be in your world a little bit, what’s the best way for them to reach out to you?

Billy Rochester:
So like I said, I don’t even own Facebook. So you can email me at honesthomesales@gmail.com. I usually respond. I look at that every day. So I’ll respond to that. This is my first interview anywhere. So I don’t have a lot of people weighing on me except for locally. So hopefully this won’t blow me up. But I do have Instagram. I don’t do it myself, but my brother checks it for me. So it’s Honest Home Sales as well.

Brent Daniels:
So honesthomesales@gmail.com is the best way directly, and then Honest Home Sales on Instagram and it’ll get filtered through his brother, because Billy isn’t messing around with any of this social media. He’s just getting deals from it, and he’s just talking to people around his community and he’s getting referrals. And like he said, I mean he’s the honest home investor. So people are going to bring opportunities to him. And, but they would never bring him opportunities if they didn’t know what he was doing. Like he said, it doesn’t matter if he’s going to a fishing tournament, or if he’s going shopping, or whatever. He is talking to people every single day, letting everybody know what he does.

Billy Rochester:
Can I share one more thing? Because like I said, being a giver is the biggest deal. I named my business, Honest Home Sales because I want to be genuine. I’m just going to give you one instance, but I was able to save a pastor’s home. It was a great lead. I was going to make $40,000. I was sitting at the table and the guy was 70 something years old, black pastor up in Greenville. And he had a heart attack, got behind on his bills. And I said to him, “What are you going to do next?” And he basically said he was going to rent. I said, “You’re going to rent?” He had been paying on his property 20 years. He’s 70 years old. He’s serving his community. He’s a great guy. And so 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’ll max the other half.”
Just doing things like that. And I’m not doing that as a pat on the back to Billy, because someone gave me good opportunities to get where I’m at as well. I grew up in a single wide trailer with, with a single mom. But the thing is this, if you’ll genuinely care about the people that you deal with, it just seems like the deals fall.

Brent Daniels:
Yep.

Billy Rochester:
And if I had more, the advice to give that overarches everything is genuinely care about the people. Don’t try to get over on someone.

Brent Daniels:
Nope.

Billy Rochester:
So…

Brent Daniels:
Yeah, no. It is about solving problems. That’s the only way that you can last in this business, this is the only way that you can build it quickly, it’s the only way that you can get those referrals from people that are going to trust you to get the job done is if you are actually out there to serve the community. And you hit it right on the head, Billy. And you’re such an extreme example of that. I am 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 really, really, really appreciate it. You’re just a shining light in our industry, and yeah, I really appreciate it. Thank you.
All right guys, that is it. And 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. Scroll down, check it all out. If it feels good in your gut, sign up for a call. You’ll either be talking to me or my right hand guy. I look forward to that. And Billy, thank you so much. That was absolutely incredible. And to everybody out there as always, I love you, and I encourage you to talk to people. See ya.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling