Rene Martinez has been Wholesaling since January 2015, and he became a member of the tribe in October 2015. He has a full-time job at Corporate America, but he still finds time to run a successful Wholesaling business.
Since joining the tribe, he’s made over 15 sales, and today he shares the deceptively simple strategy that helped him close a sale with $26,000 in net profit.
IN THIS EPISODE YOU’LL LEARN:
- One simple strategy that you NEED to use (if you want more sales)
- How to make deals when you have limited time
- Why mentorship matters
Don’t Forge Your Path Alone
Rene started Wholesaling alone. In the first nine months, he wasted money and blew through leads because his processes weren’t refined. He ended up losing $3,000… but things have changed since then.
Rene joined the tribe and hired a mentor. He’s closed more than 15 deals in a little over a year, and that’s with a full-time job!
A Simple (and Repeatable) Wholesaling Strategy
Rene sent the Tribe’s postcard (our secret sauce!) in a mailer to the high equity list. A woman replied, originally asking to be removed from the mailing list.
Before giving up on the call, Rene said he knew she wasn’t interested in selling any property and asked if she knew anyone else who was interested in selling property… as it turns out, her boyfriend was selling a house.
This house was a golden opportunity. It was recently hit hard by a storm and needed significant repairs, the owner didn’t even live there actively, and he had recently taken a title loan out on the house. He was a very motivated seller!
Rene purchased the house for $50,000 – the after-repair value of the house was $170,000. He moved the property to a cash buyer for $76,000. That’s a net profit of $26,000 from one Wholesale deal!
And the deal never would have happened if Rene hadn’t asked a simple question.
Let’s break that process down again so that you can use it:
- Get a lead on the phone. You can acquire new leads any way that works for you, but we do like postcards.
- If that lead isn’t interested, it’s okay! Take 10 more seconds to ask if they know anyone else who is looking to sell.
- Do this on every call.
We said it up top, but it’s so important that we’re going to say it again: hire a mentor. They will hold you accountable and push you to do things that you may feel uncomfortable doing. Without fail, success is always on the other side of comfort.
- Want to 10x your business? RSVP for Wholesaling Summit 2017
- Salt Lake City, Utah | April 27th – 29th, 2017 | wholesalingsummit2017.com
- BOOK REC: The Four Spiritual Laws of Prosperity: A Simple Guide to Unlimited Abundance by Edwene Gaines
- BOOK REC: The Compound Effect by Darren Hardy
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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Cody Hofhine: Welcome to another episode here on Wholesaling Inc powered by Investor Grit. My name is Cody Hofhine and today we’re going to deliver a mad house podcast with Rene Martinez. Mr Rene Martinez is from Dallas, Texas. He’s been wholesaling since January of 2015, actually became a member of the tribe in October, 2015. He’s going to kind of share his experience as a wholesaler what he’s been able to accomplish. Something that’s unique about Rene that’s going on continually is he has a full-time job with corporate America and he still finds time to do this on the side and do it very successfully. He’s going to share some tips and secrets, but the deep dive deal that he’s going to share today, get ready with a pen and pad of paper because he’s going to share some gold nuggets. Going to be absolutely imperative to write down, it sounds so silly, but how many of us really do what he’s going to share? So get ready. Let’s bring on Mr. Rene Martinez. Rene, how you doing? My buddy?
Rene Martinez: That’s all the people screaming and cheering.
Cody Hofhine: People in Dallas, Texas.
Rene Martinez: Yeah, no. Hey Cody, I’m doing fine man. How are you?
Cody Hofhine: Doing well. So kind of fill in the gaps, maybe share with people a little bit of who you are, what you do, and maybe a little bit about corporate America and what you do and then how you found success in wholesaling, doing it part-time.
Rene Martinez: Sure. Man. Again, Rene Martinez, I’m from Dallas, Texas. Currently I’m a, I’m an accountant and yeah, man-
Cody Hofhine: This should give hope by the way to a lot of people out there because if an accountant can do this, my man, I’m telling you, anyone can do this. Is this not the case?
Rene Martinez: I know, I mean, I don’t know why more people aren’t doing this. No sales experience, no formal anything other than counting beans and looking at spreadsheets all day. Doing quite well for myself I guess.
Cody Hofhine: Perfect. So, you started wholesaling January 2, 2015 what kind of turns you on to wholesaling in the first place when you started wholesaling?
Rene Martinez: Sure. My family, actually, my brother and my father, they have a flipping business and just kind of poking around and seeing what they were up to and the lack of a deal flow basically that they kind of had going on. I was just like “Well maybe I can market and feed them deals” and then it just progressed from there.
Cody Hofhine: So with that being said, do you feed them a majority of your deals or no? Do you feed this to whatever cash buyer wants it?
Rene Martinez: No. It’s highest and best always.
Cody Hofhine: You have to tell dad and brothers “Sorry, you weren’t the highest bidder.”
Rene Martinez: Oh yeah. Because I’m like “Hey, get out of my pocket because we’re trying to make it over here.”
Cody Hofhine: Perfect. Perfect. Perfect. That was a scary question. I was waiting for the answer like “Man, is he selling to one cash buyer? This is a train wreck.”
Rene Martinez: Oh no, not at all. Not at all, man.
Cody Hofhine: I love it. I love it. Now how’s that relationship every Christmas when you go and meet with your family? Like “You dirt bag. You could have sold me 10 pills.”
Rene Martinez: You know what there’s been some deals where they’ll go and they’ll take a look at it and, and I know my dad and my dad he’s a haggler. He likes haggling. So, and I’m like “Look dad, it’s highest and best. Tell me what the highest is and we’ll kind of move it along.” He’ll tell me his high and then I’ll be like “Look, I already have-”
Cody Hofhine: Dude, I’m over here smiling thinking “Holy smokes, this conversation would absolutely kill me if I had to do this with my dad.” But you managed to do it.
Rene Martinez: Yeah, it is. So, he’s like “All right, well I guess go with that guy.” And then I’m like “All right, cool.” And then obviously I signed the contract or whatever and they’re like “Oh wait! Oh I’ll go ahead and take it.” And I’m like “Dude, you’re too late.” But that-
Cody Hofhine: Does he buy your Christmas gift every year?
Rene Martinez: (laughs) Yeah, no. So, no love lost though. We know that it’s business and it’s numbers.
Cody Hofhine: All right.
Rene Martinez: Exactly.
Cody Hofhine: Okay, so you quickly, well I shouldn’t say quickly, you started this in January 2015. You kind of learned your way through it, bulldozed kind of your own trails versus following some of the trails. How many deals did you do in the time of, let’s say, what about 10 months maybe, between the time between when you started and when you actually got like a mentor and joined the program?
Rene Martinez: Yeah. Well, I will tell you that even before this whole thing, it kind of how you said, you kind of want to do it on your own and be a cheapskate and not really pay somebody to learn from and all that kind of stuff. It literally took me nine months of just basically blowing through money, wasting leads, having my phone calls go to Google Voice, and of course no followup system. I mean it was just a complete train wreck.
Cody Hofhine: But were you able to pull deals out during that time?
Rene Martinez: No! I wasn’t. I actually had to hire a mentor, an initial mentor, to at least kind of get me in the vicinity. Because it was completely just an utter disaster. Just with the little bit that I was able to pick up, I was able to do two deals. The two deals, kind of were just barely making it. I actually netted 5,000 from each one of them. And then-
Cody Hofhine: Did it cover your costs of what it took to get over that?
Rene Martinez: No, absolutely.
Cody Hofhine: Okay. So really no net. There’s still a net loss.
Rene Martinez: It was gross $10,000, but I spent far more sending out yellow letters buying lists at ridiculous prices. Yeah, man, obviously I lost like at the end of the year, like $3,000 from that, but obviously that was one of the main motivational, I don’t know kind of events, that pushed me towards Tom Crow, you, and Wholesaling Inc.
Cody Hofhine: Cool. Cool. And since then, what have you done? So October 2015 till let’s say March 2017? What has that been looking like?
Rene Martinez: Oh man, it’s definitely ups and downs, just because as you mentioned before, I do have a full time job, so sometimes things that someone who could be focusing on full-time is a little bit more consistent with it. Whereas with the job I kind of have a VA who’s handling a lot of the backend stuff, but I can’t outsource myself as of yet. So I have to do all the appointments and then negotiating and that kind of stuff.
Cody Hofhine: Double-time my man. Wearing all the hats. But that’s okay, you’re making it work and you’ve probably done in the, I think we talked a little earlier, ballpark of 15 to 20 deals maybe in the last year and some change?
Rene Martinez: Yeah, that’s correct.
Cody Hofhine: Okay. So let’s deep dive. Let’s go right into the deep dive section of this podcast and let’s go in and I know we’ve already talked about it, so let’s kind of go through like a recent that you’ve done, but it’s also been your favorite deal. And I’m telling Rhino Nation now, get ready because some of these things are so simple anyone can do it, but not everyone does this. So get ready for how simple this approach is that he got this deal from and you can replicate this and implement this instantly in your wholesaling business today. I promise you results will happen. This is living proof. He’s going to share exactly how simple it can be when it comes to wholesaling and just implementing different strategies that if you’re not capitalizing on all these little moments, you’re missing out on a lot of opportunities. This one would have cost him a lot of money had he not capitalized in this simplistic way. Kind of break it down and tell us what it looks like and let’s go right from the top, my man.
Rene Martinez: Sure. This one is definitely my favorite because it’s the biggest one I’ve done. This one actually came in from, it was a mailer that I had sent out from a high equity list, and-
Cody Hofhine: Was this like a postcard? A yellow letter?
Rene Martinez: It was a postcard. It’s the tribe’s secret postcard.
Cody Hofhine: The tribe’s secret sauce.
Rene Martinez: (laughs) Yeah. So, it was the tribe’s postcard and the lady had called, she was asking to be removed from our list. I just so happened to kind of want to prolong the conversation between her and I and just kind of build rapport a little bit. We talked for a little bit and then she said “Oh, okay. Well, I have to go.” And I said “Oh just out of curiosity or coincidence do you know anybody who might be interested in selling their house? Obviously you’re not, but somebody else who might be.” And there was a long pause and then she said “Duh, my boyfriend is selling his house.”
Cody Hofhine: Ah, I love this so much. By the way, this is going step by step with a book I’m reading called Action!: Nothing Happens Until Something Moves. This guy says “I have 10 rules that I teach everyone and it’s this: number one, ask; number two, ask again; number three, ask again; four, ask again; five, ask again.” And he just says, the power of asking you would’ve never known about “Duh, my boyfriend.” You would’ve never known about that had you not taken the couple seconds to say “Hey, do you happen to know someone that is wanting to sell their house?” I absolutely love how simple this is. Talk us through it. So she says “Duh, my boyfriend” and let’s kind of go through it.
Rene Martinez: So she says “Duh, my boyfriend” and I believe the call had come in probably three or four o’clock-ish, and she said he doesn’t get off work until seven, could you go take a look at his house then? And I was like “Yeah.” So I went, I took a look-
Cody Hofhine: Did it already sound motivated at that point, or were you still thinking “Oh, I don’t know if this is retail or…” was she already saying things that kind of already intrigued you? Like “Hey, this actually could be something.”
Rene Martinez: Yeah, she said, because last year we had a really big storm here in the Dallas Fort Worth area-
Cody Hofhine: I’d say every year. (laughs)
Rene Martinez: Well, yeah, but more specifically it had caused tons of damage kind of West of Dallas and I guess his house was one of the one that was affected and she said, and this call was, like I said, maybe a week or so after that storm, and she said “Well that storm knocked a big hole in his roof and so now he has like a big piece of sheet rock that’s laying in his living room. I think he wants to sell his house.” So the distress of the repairs was kind of what prompted me to be like “Uh-huh (affirmative). Okay, yeah, keep talking and let’s keep going. Let’s investigate this further.” And that’s what I did, man. I showed up to the house and it was in need of a ton of repairs. Essentially the guy, the guy didn’t even live there anymore, he lived with his girlfriend.
Cody Hofhine: And was this vacant then? Or did he rent it out? Or-
Rene Martinez: He had his teenage kid, who had just graduated high school or something, he was staying there. But yeah, it was completely destroyed.
Cody Hofhine: Wow. Wow. But suitable for some who live in conveniently.
Rene Martinez: Yeah. So at that point he said, we kind of did the whole dance routine, and he said “I do owe taxes, this year’s taxes on it.” And he had taken out a kind of a title loan on it and he said “Basically if you give me $50,000 for the house, it’s yours.”
Cody Hofhine: Okay. So just so I can kind of understand what I’m looking at if this sounds like a deal or not, what are we talking, when you say like after repair value in the home was all fixed up. What was this home going to be worth?
Rene Martinez: ARB was 170.
Cody Hofhine: Wow. Okay. So, in enough distress and him motivated enough that he’s like “I can’t deal with this. There’s holes in my roof. There’s sheet rock on the floor. It really shouldn’t be lived in, but I have my son in here temporarily” and he’s like “Hey, I owe taxes, but if I got 50 grand, I’m ready to move out.”
Rene Martinez: That’s, that’s about it.
Cody Hofhine: That’s a motivated seller and that kind of margin between what you can get it for and what you can sell it for after it’s fixed up is plenty of space. Plenty of room. You put it under contract and then from there you’re able to move this property to, was it just like a cash buyer? Another investor? Did maybe brother and dad get a shot at this one or is this no?
Rene Martinez: Yeah, actually they did get a shot at-
Cody Hofhine: So they got a shot, but did they actually get a shot and say we want it?
Rene Martinez: No, they did not pull the trigger until I actually had already sold it. But the house here in Texas we have a lot of foundation issues, so the house had foundation issues, obviously you had roof issues, and the air conditioner didn’t work. And obviously, here in Texas, man, that’s bad news. The Holy Trinity is kind of what we call it. Obviously it required a ton of repairs and I ended up getting it sold for 76,000-
Cody Hofhine: Dollars to a cash buyer. Hold on one second, my man. Hold on.
K. so you pick it up, put it under contract 50 you’re able to move this to a cash buyer. Cash buyer buys it for 76 and a full on net 26 I have to count my math. But you’re an accountant, so you can correct me. $26,000 on one wholesale deal.
Rene Martinez: That’s correct.
Cody Hofhine: Holy smokes. With that, what are we thinking, this is your biggest deal, what is a typical deal look like when you’re saying “Okay, this was my biggest deal.” By huge margins, are we talking? “No, I do some deals around there, but this was my biggest.”
Rene Martinez: The closest one to that I had done before, and I mean I guess typical here in the Dallas area, it’s about 10 to 12 thousand dollars. I had the closest one to it was 14,000. Basically another, a whole other wholesale deal that I got periphery.
Cody Hofhine: Wow. My man, that is absolutely awesome. So to kind of make it where people can kind of see what can wholesaling do for them? If we’re talking an average of, let’s just say for easy numbers because I’m not the account, is $10,000 and let’s say 15 to 20 deals that you’ve done anywhere from 150 to 200 thousand dollars that you’ve been able to do part-time as you satisfy corporate America with your full-time job. But then what does that look like when you’re saying “Okay, but wholesaling I ended up putting about this many hours a week into it.”
Rene Martinez: As far as actual, from contract to contract basically, or to closing, I don’t know, I would assume I’m putting in about two hours-
Cody Hofhine: Two hours per contract. But I mean in general how much you spend on the phone? Everything. Like if you said “I spend about 10 hours a week, 15 hours a week, five hours.” What does that look like?
Rene Martinez: Maybe about, probably be looking at about, four hours a day, something like that.
Cody Hofhine: Four hours a day, my man. That is absolutely phenomenal because you tie that into what kind of money you can make. Now granted there’s some expenses in there, but that’s a heck of an hourly wage. That is amazing. On top of, like you said, you’ve already got a great job full-time. Now is this something that you continue to love doing on the side? Is this something that you love doing is like a hobby or is this something that you ultimately want to switch over full-time to doing?
Rene Martinez: Yeah, the goal is to go full-time and although I do enjoy what I do and all that kind of good stuff, just the opportunity cost is pretty high because obviously if I’m doing this many deals with only four hours a day into it, I could only imagine what I can do with eight hours or whatever focusing most of my time into it and getting those results.
Cody Hofhine: It’s incredible, my man. That’s absolutely incredible.
Rene Martinez: Thank you. Thank you.
Cody Hofhine: With that being said, give us some kind of parting words of advice. If you were to look back and you said “Hey, if it was January 2015 today, what would you have done differently? Or what was something that you would say “Hey, I would’ve made sure I’d done this the same?”
Rene Martinez: Definitely I would hire a mentor. I mean, that’s just, it’s brain dead to me now, obviously, but before it was kind of like “Oh no, I’m going to, they’re teaching everything that I can find on online or whatever.” Just to have someone work with you and kind of lead you and guide you a little bit. And you guys obviously, wow. Just you guys are like, I don’t know, you feel like you have somebody who has your back. When you’re new and you’re kind of going into uncharted territory, you really need somebody to kind of push you forward and get you to do things that you might not be comfortable with otherwise. So definitely, definitely step one, hire a mentor.
Cody Hofhine: I love it. So the keywords, by the way, Rhino Nation, when you’re listening to this, pick a mentor. Pick one that you go well with, you mesh with, same mentality, same mindset, someone that’s going to push you, someone that’s going to hold you accountable. Rene explained, even before the tribe, he had someone that kind of led them the right direction that at least got them to two deals. Had he done that earlier, maybe it wouldn’t have been such a net loss. Then ultimately join the tribe and he took it to another level. So, find a mentor, 100% agree with you, but the key word, I love that you said, someone that holds you uncomfortable, like accountable and keeps you uncomfortable. And I can tell you without fail, success is always on the other side of comfort. If your comfort, you’re not growing, you’re not succeeding, you’ve got to get uncomfortable and be okay with being uncomfortable.
I can tell you right now, and maybe I won’t even answer this for you, how easy has this road been? I can’t believe. I bet it’s been nothing but smiles and roses has it?
Rene Martinez: (laughs) Yeah. No, not at all.
Cody Hofhine: Not at all. It’s not, it’s not an easy, easy road. Is it a comfortable road?
Rene Martinez: Not a comfortable road, no. Absolutely.
Cody Hofhine: Not a comfortable road. But would you say there’s a lot of success that you have felt and experienced and accomplished by being uncomfortable?
Rene Martinez: Yeah, absolutely. I’m a completely, from January 2015 to now, a completely different person just from the learnings and everything that I’ve learned from you guys and obviously some books here and there that the tribe recommends. But yeah, I mean it’s night and day.
Cody Hofhine: Love it my man. Now let’s go to the book a parting book. If you said “Hey, this is the one book I would tell you to read today, what is that book?”
Rene Martinez: Oh man, one? Give me two. Give me two, Cody.
Cody Hofhine: Okay. Just because it is you, we are going to give you two books.
Rene Martinez: Oh man, thank you so much. One for sure is The Four Spiritual Laws of Prosperity-
Cody Hofhine: Tribe favorite.
Rene Martinez: Yeah, for sure. Once you kind of adopt the teachings in that book, you’re set. Your path is set. And then the other one I’m going to say is Compound Effect by Dan Hardy.
Cody Hofhine: I absolutely love that book. I buy 15 of those by the way, 15 of those every single year. And I give them out to people throughout the year because I love The Compound Effect so much. That book absolutely couldn’t agree more. What is it that you love about The Compound Effect?
Rene Martinez: The teaching is basically you don’t have to do major huge leaps and bounds. It’s like, as long as you’re doing a little bit at a time and the consistency. Yeah, consistency is kind of the key ingredient to success. So definitely, definitely one of the top ones here in the Martinez household.
Cody Hofhine: I love it. So we will be seeing you, because I know you’ve already booked a flight here coming quickly in April, April 27th through 29th. I’m telling you this is going to be an awesome event and I’m excited that you’ve already booked to come to that event. It’s going to be awesome to see you in person again. I’m actually excited to maybe go to a movie that you liked this time because I guess you just don’t like the movies I choose. Last time when I was in Texas with you guys. We’ll leave that off air and that’s, that’s our story.
Rene Martinez: Hey, no let’s talk about this, man. Come on. You have something-
Cody Hofhine: We’re going to pick some good ones this time. We’ll pick some good ones, I won’t let ya, what did we watch? What was it? Something with Ben Affleck and you’re like “Ben Affleck? We’re not watching that movie.” Was it Batman? What was it?
Rene Martinez: Yeah, it was Batman or I think it was like The Accountant. Wasn’t it?
Cody Hofhine: Oh it was, it was. You just hated it so bad because of the whole fact that you just did like, it as an actor.
Rene Martinez: Ben Afflect, yeah.
Cody Hofhine: So we’ll pick out something good for Salt Lake, but regardless, thank you for your time and thank you for sharing. Because I can tell ya, a lot of times there’s a lot of people that listen to the podcast that are new or people that are in the same boat that they’re there with corporate America, but they’re trying to find a way to do this on the side. And when you share your story, it lets people understand “Hey, there’s still a way to do this.” A couple hours a day and you’re able to still generate some great income doing wholesaling and ultimately it’s going to lead you to a full-time wholesaler, which is absolutely awesome.
I don’t know how many deals your dad’s going to get, but that’s not my problem it sounds like it’s yours. Thank you so much for joining us and sharing those value bombs for us today on how people can do this nationwide implementing a simple thing and that is get on the phone and if they’re not interested, it’s okay. Take 10 more seconds and say “Hey, do you happen to know anyone else that is looking to sell?” Because that right there could have been a $26,000 mistake had you not asked that question and I love it.
Rene Martinez: Bam.
Cody Hofhine: Bam. That’s my man. We will see you in Salt Lake and thank you for joining us today.
Rene Martinez: Yes, sir. Can’t wait to see you. Thank you for having me, Cody.
Cody Hofhine: Awesome. Awesome. Rhino nation, this has been another episode here on Wholesaling Inc. I’m excited to have shared time with Rene Martinez. It’s been awesome just watching this guy grow his wholesaling business and doing it on the side, which is pretty dang impressive.
Also, talking about that Salt Lake event, April 27th through the 29th here in Salt Lake City, Utah. If that’s something you’re interested in coming to, I will tell you this will be the number one wholesaling event in this 2017 year. Go to wholesalingsummit2017.com. Go there and you can learn more about what’s going to go on at that summit, who’s going to be speaking, and it’ll give you kind of the event location and all that fun stuff. Now mind you, this is only for tribe members, so calling all rhinos if you have not RSVP’d, get on that website ASAP and book your seat. There’s only 200 seats and we’re more than halfway full. We have very limited seating left, so get in there and RSVP. If you’re not part of the tribe and it’s something you’re interested in doing, you can go to that website as well and book a call with our team and if we like what you have to say, we just might invite you to be part of the tribe. Until next time, take care, Rhino Nation.