Today we are chatting with two Rockstar Rhinos, Cody and Brooke Stone. They joined the tribe as a husband and wife at the beginning of 2017 and they have already closed their first deal.
We dig deep into how they did this deal – get ready for some golden nuggets of wisdom for anyone who wants to start Wholesaling or take their Wholesaling business to the next level.
IN THIS EPISODE YOU’LL LEARN:
- How Brooke and Cody made $35k on their first deal
- How to make your deal a win-win-win
- How to Wholesale with integrity
Driving for Dollars: Making the Deal
Earlier this year, Brooke and Cody were celebrating their anniversary in the traditional Rhino style: driving for dollars.
- Driving for dollars is looking through an older, established neighborhood for houses showing signs of distress.
- After cruising, they look up the address on the County Assessor’s website to find who owns the property and get their mailing address (if it is different than the address of the property).
- They sent the owner a printed letter stating they were looking to buy a house in the neighborhood, they buy houses as-is with no real estate commissions or fees, and they will make a cash offer.
The owner called back. He did not live in the property and, in fact, didn’t live in the area. He inherited the property and was looking to cash out without dealing with repairs, listing, or real estate agents. He also needed the money because he wanted to invest in his son’s business.
- He didn’t have an attachment to the property, he wanted to avoid a hassle, and he had a need for the money – a perfect seller.
- They agreed on $190,000 and mailed him a contract with a 7-day deadline. On the 7th day he signed and gave them the green light.
- It wasn’t a slippery smooth process – the seller wasn’t local or immediately responsive – and that’s why follow-up is so critical.
After the property was under contract, Cody and Brooke reached out to potential cash buyers.
- They got in touch with a number of potential investors and set up a subject property inspection for anyone who was interested in the opportunity.
- All of the investors met at the property on the same day. Some buyers approached them and wanted to make a deal immediately, but Cody and Brooke gave everyone 48 hours to submit an offer via email. This put every investor on an even playing field and that integrity will go a long way.
Cody and Brooke received two offers on the property. Their mailing list had a suggested offer price of $195,000, but both offers were higher. They ultimately sold the property to an investor for $225,000 and raked in a $35,000 Wholesaling fee – on their first Wholesaling deal!
On top of that, everyone came out a winner: the seller was able to invest in his son’s business and sell the house fast, the cash buyer was happy to buy a duplex for a good value, and Cody and Brooke were extremely happy with what they made on the deal.