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Posted on: November 13, 2020

During these uncertain times, many people believe finding wholesaling deals is extremely difficult, if not impossible. However, people with the abundant mindset can attest it’s simply not true.

Despite the fierce competition and economic uncertainties, people like Wholesaling Inc.’s Cody Hofhine is still thriving. Why? While Cody attributes his success to a lot of factors, there is one pack that has helped him be a step ahead of everyone else.

If you want to know the secret sauce that has played a massive role in Cody’s continued success, this episode is for you!

Key Takeaways

  • How you should view your competition
  • What ERT stands for
  • How you should end every phone call
  • One of his favorite questions
  • How you can slow sellers down
  • How you can secure deals directly despite the fierce competition

RESOURCES:

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Episode Transcription

Cody Hofhine:
Hey guys, Cody Hofhine here with Wholesaling, Inc., and I am here to break this down right now on one simple hack, just to make sure that you are doing what you should be doing so that you can continue to get the deal flow that you are looking for. So many times we hear questions, “Oh, in this economy where the home prices are going so high, why would anyone want to sell at a discount when they know they can list it with a realtor and get top dollar?” Guys, those aren’t the deals that we’re looking for. We’re looking to solve problems, and I’m going to teach you one simple hack on how you can get more deals, even in this economy where the home prices are going up, or even if you feel like, “Oh, that’s easy for you to say, but I’m in a territory where there’s 500 wholesalers, and it’s so hard, because there’s so much competition.”
Guys, don’t believe that. Don’t tell your head that there’s competition. If you believe that, you’re right. It’s the old adage from Henry Ford, “Whether you believe you can or can’t, you’re right.” So tell yourself you can, tell yourself it doesn’t matter. Have an abundant mindset that we’re all going to the ocean with five gallon buckets, and it’s okay that there’s competition, that’s what makes you better. If there was no competition, you also wouldn’t become your best self, you wouldn’t become the best wholesaler.
Let competition, if that word exists, be something that strengthens you, let it be something that makes you a better individual. So don’t worry. Don’t worry about competition, it doesn’t exist. It only exists if you believe it. But what I’m going to teach you right here is one simple hack that’s going to make you so much different than all of your competition, so that you can continue to get the deal flow that you are looking for.
Now, let’s rock and roll, and get right to this. I have something that I simply call ERT. Now, what does ERT stand for? That’s what I call Establishing Relationships of Trust. We haven’t talked about comping homes or how to find deals, you mean you’re going to tell me that I got to establish of trust? Yes, it is an absolute must, because everyone of your so-called competition is pitching the same thing. All they talk about is the cash offer, or we’ll buy it as is, or there’s not going to be any real estate fees or any commissions or any closing costs. Everyone says that. So how to make yourself different from everyone else is simply taking the time to ERT, Establishing Relationships of Trust.
When you’re on the phone talking to a motivated seller, and they’re talking about their home, every phone call should end this way. When you’re in this business, I hope your heart’s in it to help people, and that it’s not in it for money. Money’s just the byproduct of serving people, so don’t worry about money. If you genuinely have a heart to serve people and solve their problems, then you will make money in real estate. But if you’re always out there looking for the deal, or the money, you’re going to be one that’s either going to be on the roller coaster of highs and lows, or you’re going to sizzle out really quick and forced to go back to maybe that 9:00 to 5:00 job that you don’t like.
Work on yourself to have compassion and love and kindness to go out and serve people, because establishing a relationship of trust is going to be the differentiator between you and all your competition. When you’re on that phone and you’re talking to individuals, you really should have a voice of concern, of love, of kindness, when you’re talking to these individuals. It shouldn’t just be, “Okay, so tell me a little bit about your home. Awesome. Okay, how many beds? Awesome. Okay, how many bathrooms? Awesome. Have you repaired it? Okay, there’s been those repairs.” No, don’t have a conversation just about the home, make sure you’re talking about the individuals, make sure that they know that you care about them, because at the end of the day, they don’t care what you have to say until they know you care about them.
You have to show that you care about them and it’s not about the house. It’s finding out, “So this is a beautiful home, why are you considering selling?” Write that one down. That’s one of my favorite questions, “This looks like a beautiful home, why are you considering selling?” And then just turn off the mouth, whoop, and open the ears, and start listening. Remember, God gave you two ears, one mouth, use them proportionately. You should be listening more than you speak.
Ask great questions that allow them to expand on what they want to do. “Looks like a beautiful home. Why are you considering selling?” “Well, we want to downsize.” Instead of asking a yes or no question, ask it with something that makes them expand, “So you say you want to downsize, tell me a little bit more about that.” Ask questions that don’t end with where something that all you have to do is say yes or no. Like, “Hey, so you want to move?” “Yes.” You don’t want that. Or “So you want to move next week?” “No.” Don’t ask those questions, ask the question of, “Oh, so you want to downsize, tell me a little bit more about that.” Then watch them, and just sit and listen, spend more time listening than you do speak.
Then they’re going to say, “Well, we’re downsizing because my kids are out of the house now, and me and my husband just want to find a place that we want to live the rest of our lives.” Awesome. “So you want to find somewhere that you want to live the rest of your life? Tell me a little bit more about that.” Keep asking that question. “Well, it’s going to be a town that’s 10 miles from here, and we really love it.” Awesome. “Is it a condo, a town home?” “Well actually we’re moving into a mobile home.” Now, in your mind, you could be thinking, they’re downsizing from a home to a mobile home, is that a choice? Or they going that route because that’s something that they can afford, where right now they really can’t afford their home. Okay. “What is it about the mobile home park that you’re going to? Tell me a little bit more about this. What’s cool about this? What’s unique about this place that makes it be where you want to live the rest of your life?”
Then listen, just listen to them. These are things that establish relationships of trust, and lets you know why they’re selling on the home, and not for how much. Don’t worry about the, how much are you asking, or what does the home look like? Or what condition is it in? Worry about them. Ask the why? Why? Find out why. If you can find out why they are moving, why they want to sell, why they called you on a 37 cent postcard, you, my friend, are going to be very successful at wholesaling.
When you end the call, it should be simply like this, “Hey Mr. Seller, or Mrs. Seller, me or my team, we’re going to be out there.” So whether you have a team going out there, or whether it’s yourself, “I’m going to come out there Wednesday at 2:00 PM. We’re going to sit down, and there’s a chance that it’s going to be a good fit and it’ll work, and if it’s for some reason, something that’s not a fit for me to buy your home, I’m still going to sit there, Mr. Seller or Mrs. Seller. I’m still going to sit there and find out what is the best option for you.”
When you end your phone call that way, they might have a stack of postcards that are 10, 15, 20 postcards sitting on their desk, and they’re just going through them, calling each one and setting up appointments. But when you take the time to care about them, and establish a relationship of trust, and end your phone call in a way that says, “Hey, this might be a fit, and if so, we can move as quick as you want it. We can make this happen the way you need to make it happen. But for some reason, if it’s not a fit, I’m still going to sit there, and we’re going to talk about what could be your best option, and I’ll help you, lead and guide you to what will be your best option. Fair enough?” And every time they’re like, “Oh my gosh, yes.”
Now many times, from when I do that, and when my team does that, many times you go in the house and they literally tell you, “Hey, originally I was going to have four appointments, but because you’re either going to buy it or you’re going to find someone that will buy it, I ended up just ripping up the rest of the postcards and told them don’t worry about coming out.”
When you say that, they don’t want to show the home to 10 different strangers, they don’t want that. They want to be able to just accomplish their goals and solve their problems. If you can become that person right of the gates on the phone, where you’re establishing that relationship of trust, people do business with people they trust. As you go on the appointment, you should be reestablishing that trust again, because that was by voice over the phone. Now, you’ve got to do it in person. When you get out there, show your teeth, smile, don’t go up there with a clipboard and just like, “Okay, show me the house. What does it look like?” Awesome. “Where’s the bathroom?” Cool. “Okay, the kitchen looks like it needs remodeling.”
No. Go in there and say, “Sally, we just talked two days ago. Here I am. So excited to meet you. Let’s see what we can do to help you out.” As you walk in the house, most sellers are going to speed you up. They’re going to be like, “Okay, so here’s one problem about the house, downstairs we had this leak through the window.” When they start going right to the house, slow them down, take a minute and slow them down.
What you really want to do is you want to just start talking to them, “Sally, this is a beautiful home. As I entered in here, there’s just a cool feeling in here. In fact, the first thing I noticed was the picture above the fireplace.” And as I’m looking at that, “Where was that taken, Sally?” And Sally is going to be like, “Oh my goodness. That’s when me and my husband got married, and we were down at St. George, Utah, which is Southern Utah. We were in St. George, and there was just a perfect, beautiful sunset, and the red rock in the background, so we took a picture there.” And you’re going to be sitting there like, “Oh my gosh, I love St. George. That’s one of my favorite places for our family to go and hang out because it’s so close to Zion National Park, and it’s so close to all these fun things that you can do. You can go boating. You can go on your razors, your side-by-sides, there’s some sand dunes down there. There’s fun stuff.”
You start to connect. As you start doing that, you’ll realize even they slow down and stop talking about the home. Now they’re asking questions for you. “So do you have a family?” “Oh my gosh. Yes. They’re like my pride and joy. I have four kids and me and my wife do our absolute best to keep them growing the way they should. We’re super, super, super busy trying to do all that we can to become the best parents that we can.” And you just simply start having communications back and forth. “Do you have any kids?” “Actually, yeah, do you remember, my kids moved out. My last one was 18. He just graduated high school, now he’s going to college.” Awesome. “What college is he going to?”
If you will do this for a minimum of 30 minutes, okay? Every appointment we go on, we make sure that we ERT, Establish a Relationship of Trust, for 30 minutes before we talk about the house. It’s all about building trust because people do business with people they trust, and they don’t always remember what you said, but they will always remember how you made them feel.
If all you do is talk about the home, they won’t feel anything special. They won’t feel anything great about you. But when you take time to invest in them, and truly know their story, and truly find out what are their needs. Then find out, now that you know their needs, if you can be the one that solves the problem. Because remember guys, we’re not deal creators, we’re deal finders. If you aren’t a fit for these individuals, don’t twist them and pigeonhole them into this deal that doesn’t exist. Don’t do it. Be true and honest to that. If you’re not a fit, tell them that, “You know what? I don’t think this will be the best fit for me, but let’s sit down and let’s find out what is the best fit.” When you do that, call it karma, call it universe, call it God, you are going to have great things come back to you tenfold when you just go out there and genuinely serve people.
So remember guys, as you go out each and every day, it’s not about the home. Every time you’re asking questions about homes, or the home, or the deal, know this, you’re going the wrong direction. You must ask questions about them. How are they doing? What are they doing so that they can tell you their needs? Tell you what it is that they need to do so that you can then see if you can be a fit. If you will take time for that one simple hack, of establishing a relationship of trust, it will differentiate you and separate you from all the pack where you will be the one that continues to do deals even when we call competition high, or when we call the deal flow of the price of the homes is going up, no one’s going to sell at a discount. You will still be able to get those deals consistently every single month, because you’re not caring about the home, but you’re simply caring about the individual.
Guys, thank you so much for listening to the podcast today. If you’re looking for help to build your wholesaling business, head on over to wholesalinginc.com, and that’s where you can book a call with our team, and be able to talk with our team members and find out if it is a good fit for you guys to be in the tribe. Thank you so much guys, and we’ll see each one of you guys on the next episode. Take care.

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