Posted on: February 08, 2021
WI 619 | Virtual Wholesaling Markets

 

Are you new to the wholesaling business and are unsure how to start doing it or what doing business is like in an area? Then you need to seek help from experts to stay afloat! Having a Joint Venture (JV) partner is the ultimate secret weapon to shorten your learning curve for starters at wholesaling. Today’s guest, Roger Godwin, will help the listeners crystallize the idea through sharing his experiences and some advice on doing business with a JV partner.

In today’s episode, Roger will talk about how it is like to be a JV partner, his way to becoming the ultimate connector, and tips on finding the right JV partner. He will also talk about the importance of people in doing the business and helping people while earning. Finally, he will talk about how he rose from his difficulties through his organizations.

Listen to this fascinating topic, especially for those who need help in starting the business and finding the purpose of doing business. Hit that play button to know about it!

How to Find Boots on the Ground in Your Virtual Wholesaling Markets With Roger Godwin

Episode Transcription

I’m so excited because I have my favorite JV partner. His name is Roger Godwin. He is with us to talk about how having a JV partner in your back pocket is your secret weapon to shortening your learning curve when you are brand new at wholesaling. Roger, welcome to the show.

What’s up, Lauren? What’s up, people? It’s nice to be here.

I’m excited to have you. The reason I’m excited is more for my coaching students because a module in my course is all about working with JV partners, Joint Venture partners. I believe that if you, as a new investor, are either brand new to wholesaling, investing or territory, you need a JV partner. I always use you as an example because you are my JV. This is him. Everybody thinks Roger is this maybe mythical creature I made up. Roger does exist. He is right here. Roger, tell me about you. When did you get started in real estate?

My dad was still alive is whenever I first got into it. I was being trained and taught how to do real estate, and I didn’t know it by a gentleman that took me on whenever I was eighteen years old. We did properties. He bought them. We fixed them. He showed me how he did the rentals. He did everything cash. When I got into real estate here in Oklahoma, I realized that you could leverage. That was amazing because I bought my first property in cash. That was cool to realize I didn’t have to put it all up.

I got into it much heavier. Being in construction, I was able to double-dip, for lack of a better term. I had a construction company, so I was able to figure out what it costs to fix the houses. I was like, “I’ve got a house to sell you.” That’s how I got into it in this market. I became the contractor that would follow through and be the fixer for the house that I sold them and other houses.

You were working under the capacity of you’re a wholesaler, but you also would get the construction business if a house flipper or a landlord buyer bought the home. You ended up being pretty well-known. The way I found you, and I’ll never forget, was someone suggested I needed a JV partner. What happened was, I came to Oklahoma bright-eyed and bushy-tailed. I didn’t know what to expect. I worked the Oklahoma market trying to wholesale deals for about six months, and I was not having a lot of success. I did about two deals. I was super frustrated.

I was looking around and seeing a bunch of people doing deals, but for some reason, I could not figure out the market at all. A friend of mine had said, “Why don’t you get a JV partner out there? There must be something to the market that you don’t understand, and you need someone who gets that market. There must be a nuance. There must be something that you’re not getting.” He couldn’t have been more right. I was coming from a flipper mentality. I worked in high-end markets like California, so I was using flipper numbers for these.

I was not familiar with landlord markets and how to price a property for a landlord buyer. I was screwing up offer pricing and I didn’t know what I was doing. I posted on the local Oklahoma Real Estate Investors Association’s Facebook page. I said, “I’ve got some contracts I’m working on. I need somebody to help me move them. Do you know anybody who has got a great buyer’s list and would be interested in working with me?” I got a bunch of replies. Some people were like, “I’ll do it,” but three people tagged you. They said, “You should call Roger. He knows everyone. He is the guy.” I had recommendations. You were recommended by a few people. I scheduled a time to talk to you.

I remember it was a Sunday. We both were with our kids. You were so down-to-earth. You had this collaborative mindset. We got each other. I knew you would be great to work with, and I was honest with you. I said, “We’re trying to build our own presence here. We’re not going to be married to each other, but this will probably be good for 4 or 5 deals.” You were cool with it. What happened from then on?

Spending time with people is never wasted time.

From then on, I know that I had to work with you. I was able to be on the ground and having that understanding and having the connections that I have here in Oklahoma. Everybody knows me. It’s a thing. That’s one of my goals in life. My mentor, the guy that taught me how to do real estate and construction, that man is the man I want to be when I’m older. He can’t walk anywhere, go to a store or go eat at a restaurant without somebody knowing who he is. I admired that, and I worked with him for almost ten years. People matter. I have with my tag on my social media, “Spending time with people is never wasted time.”

From that, I have an opportunity to get to know people. With a lot of the deals that I’ve done in Oklahoma, it’s a phone call. Somebody called me to look at a deal that she had. That was not a deal. The floors are falling in because of termites, but there was a house two doors down that’s for sale by an owner. The guy wants $72,000. It’s all fixed up and ready to go. I’m going to move it to another investor for $81,000, ready to go. I made a phone call and it’s gone.

I remember it was our first deal or second deal and we both surprised ourselves. This house, we got it under contract. I’m funny about remembering these prices as many as we’ve done. We got it under contract for $18,000 or $15,000. It was this piece of crap house. It could rent for $500 and it needed a ton of work. It was a gross-looking home. At first, being not from the area, we were like, “What type of person would buy this home? It is a piece.”

I remember it was 600 square feet. It was the tiniest little thing and we took it to you. You found a unique interest in this neighborhood with a certain community of people. They had a unique interest and they were willing to pay practically market price for this home, all cash. We made an $18,000 wholesale fee on that thing together. It was fun and easy too. It wasn’t even that hard and it was because you knew people. You are the ultimate disposition wholesaler.

I like to call myself The Ultimate Connector.

It was for you. I remember it was because you had a relationship with someone else who had the buyers of this community.

It’s knowing those people. Whenever you’re virtual because you’re a virtual monster and that’s what you do and the way you guys have everything done and teach your students is fantastic. Having somebody like me on the ground, and you guys have hired people to be on the ground here for you now, but those people need to be able to network and talk with people. I’ve been training some people that keep coming to me. It was like, “How do you do this?” Go meet people. That’s it.

If you’re trying to get deals, go to places where there’s nobody else like you. Every other networking event in Oklahoma City, Tulsa or whatever it is, there’s no other real estate investor there. There’s also no other contractor in them either. That’s how I figured that one out. You can’t go to real estate meetings and expect to get deals. You might be able to JV with somebody, but if you’re trying to build your own thing and get your own deals, that’s the best way. I did 33 deals in 2020, and I talked to about 120 people, give or take.

WI 619 | Virtual Wholesaling Markets

Virtual Wholesaling Markets: You can’t go to real estate meetings and expect to get deals. You might be able to JV with somebody, but if you’re trying to build your own thing and get your own deals, that’s the best way.

 

Do you do any acquisitions or legions? People hand you contracts.

All word of mouth.

You are proof that if that’s all people want to do, you can make a business that way the way you have. I wish personally for my virtual students that I had a Roger in every territory. If you are reading this and you feel like you identify with Roger and you’ve got that buyer base and you are the connector, I want you guys to personally reach out to me and let me know your market because I have students that are looking for The Roger in every territory.

I like that, The Roger.

I say that all the time. I literally say, “Find your Roger.”

That’s it. I’m so excited about this.

It’s the pistachio buyer plus the Roger thing. People are like, “Who is Roger?” In that deal example, if we try to move that deal ourselves, we would have gotten maybe $7,000. We didn’t know what we were doing. You opened up a buyer base of pistachio buyers that have unique interests and that’s how we got $18,000. Everyone’s first inclination is to try to move a deal on their own, find their own buyers and rent their own buyers list. They’re all brand new. They’re scrambling, trying to find a buyer. They talked to five buyers and got maybe 2 offers out of the 5. It’s a $7,000 and $3,000 wholesale fee or you can make that call to Roger, who has an established buyer base, and he is the connector. You were able to identify the best opportunity in that deal and we made $18,000.

2020 was fantastic for me. I don’t know what it was for a lot of people. I’m sorry many people didn’t have a good year in 2020, but it was the best financial year and time with my family that I’ve ever had. We were very specific. We talked to people with the tax auction here in Oklahoma. We targeted a couple of people to reach out to and speak with. One of my deals is going to close finally. We had to do double probate on it. We’ll clear a $63,000 wholesale fee.

Did you work just disposition on that site or were you acquisition as well?

If you’re trying to get deals, go to places where there’s nobody else like you.

Let me tell you a little bit about this.

Break the deal down, micro. My readers want to know it. They want to know what is the $63,000 deal. How does it look?

First of all, I have this wonderful girl that works with me. Her name is Christine Garlitz. She is here in Oklahoma City and a fan of yours. She’s like, “It’s the lady.” I was like, “It’s Lauren. We’re buddies. What’s up?” You’re a big deal. I’m a fan. I have Christine as my partner and she is like me. She is a female me. She loves to reach out to people and love on people. She wanted to do things to do acquisitions. She put handwritten letters in an envelope on doors, reaching out to people that had a certain need. With that certain need, three months after the auction was over, it was for the tax auction. Three months after that was done, they found our letter in a box and they called her.

We went to go meet with the guy. This was his childhood home. The brother is living in California somewhere. His wife passed away. He is engaged to his childhood sweetheart that lived down the street from him in this house growing up. There are a lot of them. Me, personally, I spent about two and a half hours within the first time I met him, talking and listening. He is a cancer survivor and he told all the story. He wasn’t sure if he wanted to sell it. I talked to him again. We were going to do a deal to where we were going to help him finance it, so we’re going to buy it. We were going to finance the rehab on it and then we’re going to sell it back to him.

That’s what we were going to do because they didn’t have the money to do it. They don’t understand the financing and how that stuff works. Plus, they don’t have a crew. We agreed, “We’ll buy it for this much, fix it up and sell it back to you for this much.” His brother ended up passing away in this time period that we’ve been talking. He was finally like, “I want to start my entire life over. Me and my fiancé want to go do this. We want to sell it to you.” We decided that we’re going to go ahead and buy it. We took it under contract for $90,000 and we’re selling it for $153,000.

Who is the end buyer that you’re selling it to? Is it a landlord, flipper or retail?

It’s a flipper. It’s a friend of ours and it’s somebody that met his criteria. This is a later vintage 1950s, gorgeous house and well-taken care of. If you go into That ‘70s Show and think about what that looks like, like the retro and tile, it’s fantastic. I knew what his style was and where his numbers were because of having a conversation with him. He is the first call we make, and it’s the only call I have to make.

You do know all of your end buyers very well, so you don’t have to mess around with too many people. That’s what I loved about it. I appreciated when I did deals with you. We didn’t have to deal with having too many eyes on our property. It was smooth and seamless because you worked with people that performed. There was always this confidence that you would make the deal happen. There are a lot of JVs out there that I could warn you about that are the daisy chains of the world, we call them. They will say they have a buyer, but they don’t. They’ll even tie it up. They’ll say, “I have a buyer. Let’s put it under this LLC.” They’ll sign an assignment agreement and then they won’t perform. It’s the craziest thing.

WI 619 | Virtual Wholesaling Markets

Virtual Wholesaling Markets: If anybody has ever audited a JV agreement, it’s not a good thing to have because you’re held accountable for taxes.

 

I have a good answer for that. I need to send you this document that I have. It’s called a settlement statement. We had a situation where an attorney out of Tulsa had a deal tied up in Oklahoma City. We didn’t trust the people because we know how they do business. I had to call my attorney. I was like, “We have this under contract.” This guy put earnest money and had it under contract and had a cloud on it for over a year. My partner is honest. He reached out and was like, “We got this deal. What do you want to do? We couldn’t get him to do anything.” They were like, “Here, sign our JV agreement and then we get this,” but his JV agreement stated that at any time, he could cancel it or we could cancel it without the approval of the other.

I was like, “Are you talking about the day before you can cancel me? No, I’m not doing that.” I had my attorney write up a settlement statement to where it stayed underneath ours. They had an agreement. Everything goes to the title company, and then you’re also not tied to them. If anybody has ever audited a JV agreement, it’s not a good thing to have because you’re held accountable for taxes. That joint venture is a deal. That’s a certified company, according to the IRS. With a settlement statement, that’s how you do the agreement between their company and your company.

A lot of people ask me, “Do you have a JV agreement?” No, I don’t. We would put it on every assignment agreement. We did that. We would settle it on the assignment. We never had a JV agreement. There are a lot of ways that it can go a little wonky if you get the wrong JV. That’s why I want to talk a little bit about getting the right JV. Roger is the right JV. You talked about some acquisition stuff. I always tell my team, “You need to be empathetic.” You are so empathetic.

I always tell my team, “I want to know what the seller’s cat’s name is. I want to see all my CRM that you took the time to know that seller and their situation.” You need to know and be friends with that seller because it is a people-first business. We do need to make sure that we’re problem solvers and that we’re thinking of other people and trying to help people. That’s an amazing story of how you helped that guy. I hope that our readers can be inspired by that. You’ll hear it in Roger’s voice how sincere Roger is. There are times where you speak to JVs, and yet it’s a little questionable and you’re not so sure. It’s a bit of a gut feel. You’re a connector. You talked to a lot of people. There’s a gut feel about people.

With that, whenever it comes to other people that I’m willing to do work with and partner with, there are certain people here in Oklahoma City, it does not matter how good the deal is. I will not do a deal with them because I know how they are.

Even Oklahoma City is a million-plus population in the metro. It gets around.

With that, yes, it’s a gut feeling, but I love to ask questions. Anybody that I do deals with, the only reason why I go to real estate meetings or make sure to have lunch with people is because I want to know. If they’re a wholesaler, I’m going to go, meet, talk with them and find out what is their why. I need to know, “Are you about money, people, goals or learning?” If you are only about money like, “I’m going to buy all this stuff with all this money I’m making,” I’m out. “How are you serving people?” “I don’t. I just do my own thing.” You’re out. There are certain criteria that I have for myself to work with anybody.

I was going to share something with you, and this may be for the last part of it. I have three questions that I ask in a specific order to every seller. “What is the future going to be for you after you’ve chosen to sell this house? What is the dream? Are you going to go on vacation, buy a new home or move? What is it?” The second question is, “Why did you call me? What got you to the point of needing for me to be here? What has happened that I’m even in your home right now?” The third one is, “What can I do from right now until we close?” That gives excitement for the future, pain for the past and relief for right now. You get every single question that you need from those three questions, every answer that you need.

In your first call, if that’s all you asked, you hang up. You don’t need to know the age of the AC. It’s amazing what the people junk up the first call with. “Tell me a little bit about the condition.” It’s like, “No, ask these questions. Figure out what’s bothering them, what’s keeping them up at night and how you can solve their problems.” That’s what you’re there for. As investors, we are in the business of finding deeply discounted deals. That’s how we make money, but we need to earn that. We need to solve a problem for that. We have a duty to that seller to solve a problem to earn that.

Everybody has a story that someone is going to get a golden nugget from.

Let me share one more acquisition story. This is another deal that I did with Christine, and I shared it at my event that I did. It’s a nice area and another tax lien situation. The lady almost lost her grandmother’s house and her mother’s house because she couldn’t come up with $200 to take off the tax auction. She was going to have to miss her car payment and all kinds of stuff. We went and talked to her. She was working at Walmart. We met her at Panera for coffee and found out what the story was. That’s what the situation was. She could not come up with it. She was embarrassed that she couldn’t ask anybody for any more money because she has been asking to survive all of these years.

We found out what the problem was. We were going to buy the house, and then we were going to sell or finance it back to her, “$600 a month for ten years, the house can be yours again for X amount that we’re going to invest. We’re going to fix it up. Nothing.” In between the time that we were supposed to close, her husband, which we didn’t know is her husband because we had to do the probate because we were going to go out and do that deal. We did the probate. Her husband beat her and went to jail. It was a crazy situation.

One of the main things that she wanted was to fix her teeth. She told us that she was in a car accident. It turned out it wasn’t a car accident. There was this crazy story behind it. During that time, her husband went to jail. We found out her husband was getting out of jail, so we needed to hide her. I put up $10,000 for about three months to be able to house her, bought her a car and all these things to make sure that she and her two kids could be okay. I got paid that money back plus interest at closing.

On that deal, we made around $40,000. The main thing about it is that we were able to help her with her situation. I have liquid cash to be able to help solve those problems and it’s not the first one. I’ve done it seven times of giving cash upfront to help them survive and get the things done they need to get done because that’s the question. I sincerely mean, “From right now, we signed a contract until we close. What do you need?”

That’s the thing, and that makes us different from what realtors can do. You don’t see when you’re selling your house on the market. Realtors aren’t going to do that for you. That’s why I do truly believe that there is a place for wholesalers or real estate investors that are marketing direct-to-seller because we can take sellers that are in situations where a market sale does not work for them and isn’t going to solve their problems.

We’re battling some stuff in the state legislature here in Oklahoma, as well as their stories from hundreds of other deals with other partners that I have done. A realtor couldn’t give money. That’s coercion. You can’t do that. It’s against the regulations of being a realtor. If we didn’t help her come up with and pay for that one year with the taxes, she would have lost her home. A realtor can’t do that.

That’s the thing. You guys can think creatively with deals. There are ways that, if you have the money, that you can lend the seller of the money and still protect your position in it. You can file something to lien the property to ensure that you get paid back. I’ve done that myself. We’ve done a lot of different things with tenants and sellers as well, releasing funds to help them move and stuff like that.

Getting a mover out there, we’ve done stuff like that. We got movers out there to help them move. We helped hoarders with, “Leave everything so you can start fresh and clean,” whereas a realtor wouldn’t be able to do that. There is a place. The amount of empathy you have for people is the reason why you’re successful, Roger. You’re very philanthropic. Why don’t you tell everybody about your organization?

I have an organization called Outside the Box and Equipping Leaders Network. With Equipping Leaders Network, that’s also our YouTube channel. It’s where I bring in people and we interview them. It’s so fun to do because you get to hear people’s stories because everybody has a story that someone is going to get a golden nugget from. It’s that a-ha moment. People don’t know they did 100 deals in their first year, buying, flipping or renting them. They don’t think that he has a story. It’s like, “I got questions.” I almost declared bankruptcy and got divorced. It was a hard time and I took a year off. I shut down my construction company. I went to work for a friend of mine for a year and I needed that year to reset.

WI 619 | Virtual Wholesaling Markets

Virtual Wholesaling Markets: That joint venture is a deal. That’s a certified company, according to the IRS. With a settlement statement, that’s how you do the agreement between their company and your company.

 

January of 2019, he asked me, “What are your goals for this year?” I said, “I don’t know, but I’m going overseas to go back into the mission field.” I’ve never been a full-time missionary by any means, but I wanted to build churches many years ago. That was my heart. I was in construction. I can go build stuff. I’ve been a DJ and an emcee at many ceremonies. I can marry people. Get me in front of a microphone. I’m good. I don’t know what I’m doing. I just know that I’m going overseas somewhere to get back into the mission field to do what I’m called to do. A lot of people have their backyard or country as their mission, and I have a heart for the International Mission.

I got the opportunity to be a guest speaker in Kenya for a conference in Nairobi. During that time, I was adopted as the Murung’a Kenyan, so the White Kenyan. It was fantastic. The people that I met, there’s a couple of pastors that I invest in, but the reason why I was asked to go there was to go and speak to a group of ten young entrepreneurs. I’m still mentoring them and helped three pastors get on their feet to have a sustainable business so that they don’t have to work. Most of the time, in different countries in Africa, the wives are the ones that take care of the finances so the pastors can pastor.

I’ve been able to help create sustainable businesses with them because they understand their market and know what they needed to do. One has a catering company, one has a little storefront and then one is a chicken farmer. That’s what they do and then they do some other things. That’s what I do. I go over there, speak and do leadership conferences. I got invited back in October 2021 as well. I was a keynote speaker at Daystar University and got to interview people from fifteen different countries at another event in Nairobi. I was able to talk and say, “These are things that I do to help.” It made a huge impact on another guy, Moses, in Uganda. He is blowing and going, working with farmers and creating a sustainable income for them. That’s what I’m about for that.

You’re very philanthropic. It also shows in your real estate business how you’re here to help sellers. Here at Wholesaling Inc., we promote that. We are here to serve. You are a perfect example of somebody that is a part of our tribe and speaks to what we’re about. We’re so glad to have you. How can people find you if they want to get a hold of you if they have deals in Oklahoma or want more help with being The Man, being The Roger in every territory?

I appreciate that. You guys can find me at Roger Godwin. It’s a picture of me in a gray suit with a pink shirt on Facebook because real men wear pink. I also have Equipping Leaders Network and Outside the Box. Equipping Leaders Network is our YouTube channel and also our Facebook. I have @EquipLeadersNetwork also on Instagram.

Roger, we’re so glad to have you. Thank you so much for the help that you provided for my company. If it wasn’t for you, I don’t know if I would have been able to make it to Oklahoma. I’m super grateful for having met you. I hope that there could be more Rogers in every territory.

I’ll be happy to help and teach about what I do because I get to do a lot more deals than most people because it’s word of mouth, one, but two, I can offer more money because I don’t have the overhead that most people do. It’s a benefit. Thank you, Lauren, so much for having me on. It’s such a pleasure to see you again. Students, listen to her. She knows what she is talking about.

If you guys are interested in going virtual the same way I did, remember to check out www.VirtualInvestingMastery.com. That’s my coaching program. If you guys applied there, somebody on the Wholesaling Inc. Team would get back to you very soon. Roger, that’s it for now. Thank you so much for coming on.

Thanks. I will talk to you soon.

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About Lauren Hardy

WI 734 | Cash Buyers ListLauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.

Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.

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