Alex Joungblood is a Wholesaling ninja and the man behind one of the best free Wholesaling resources on the web: the Wholesaling Houses Full Time Facebook Group.
IN THIS EPISODE YOU’LL LEARN:
- How Alex uses Wholesaling as a stepping stone towards bigger real estate deals
- Why Alex created Wholesaling Houses Full Time for people like us
- Why Direct Mail is one of the most scaleable and data-driven marketing channels for Wholesaling
The Best Marketing Channel for Wholesaling
Marketing drives any Wholesaling business.
Alex uses many marketing channels, but direct mail is his favorite. One of the biggest benefits is that it’s extremely scaleable. On top of that, you don’t have to take any guesses – the process should be data-driven.
Here’s a glimpse at how you easily you can scale direct mail marketing, without any guesswork.
- Start can start by looking at a list of all the transactions in a certain market
- Find the area of the market that has the most activity
- Focus further to one hot subdivision and direct all of your marketing towards it with the goal of getting just one deal
- If you invest $200 in marketing to the subdivision and you can make even $2-5000 from that deal, then you have enough money to re-invest and market to the whole zip code (or other targeted subdivisions)
With direct mail, you can really let the business fund itself.
- Join Alex’s Facebook Group: Wholesaling Houses Full Time
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: Hello rhino nation, this is Cody Hofhine with another episode of Wholesaling Inc. brought to you by investor grit. We are going to get into this today quick and easy and just nail down. Get right to the meat, potatoes. We’re going to break down a deal for you. Today, we’re going to be talking about wholesaling and for those that are new listening to this podcast and they’re wondering what wholesaling is, it’s simply this, it is the art of finding deeply discounted properties. How to locate these properties, put them under contract and then turn them for a profit.
And we have a guest with us today that is an absolute rock star. He is a ninja at this stuff and it is Alex Joungblood. He’s from Wholesaling Houses Full Time. This folks, by the way, is probably one of the best Facebook groups for wholesalers to interact, talk with each other, share their wins, share their successes, share what’s working, and this guy is a beast. This guy is doing it. He is actively wholesaling and is very successful. So we are absolutely excited to have Alex Joungblood with us today. Alex, how the heck are you my friend?
Alex Joungblood: I’m good, man. Good to be chatting with you.
Cody Hofhine: All right. So tell us a little bit about yourself. Give us a little background and then tell us a little bit about Wholesaling Houses Full Time, as well.
Alex Joungblood: Absolutely. Well, my name is Alex Joungblood, obviously, first of all. As far as me getting into this business, it’s kind of an interesting story because when I first moved down to this area, where I live now,-
Cody Hofhine: Where are you at, by the way?
Alex Joungblood: I’m in the Virginia area, the Hampton roads area of Virginia, which is kind of Virginia Beach, Chesapeake, Norfolk, that area.
Cody Hofhine: Perfect.
Alex Joungblood: And so when I first came down here to start my new life with my brand new wife, I-
Cody Hofhine: I love the chuckle, man. It’s like with a brand new wife and life.
Alex Joungblood: Yeah. Yeah. I’m keeping it real with the rhyming, right? I didn’t have any money, was starting out as a brand new couple. But what I did have was an old, you know, CRT TV that I could watch regular TV on, set or rabbit ears, right. And I could also watch infomercials. So I watched all kinds of infomercials relating to the Bowflex. Do you remember the Bowflex?
Cody Hofhine: Dude, I own a Bowflex.
Alex Joungblood: You own the Bowflex. Yeah. I wanted to get a Bowflex and all these different cooking appliances and utensils and the Ginsu knife.
Cody Hofhine: It cuts a boot in half, dude.
Alex Joungblood: Yeah, yeah. And chop this up and make smoothies and all this kind of stuff. And also, if you know anything about infomercials, they are also on what?
Cody Hofhine: Well, there’s also-
Alex Joungblood: Real estate.
Cody Hofhine: On real estate. I was going to say.
Alex Joungblood: So yeah. And I think it probably hadn’t been Carlton Sheets was the first infomercial I watched.
And, and when I first got into it, I didn’t understand what the mortgage was. I didn’t know what refinancing was. I didn’t understand. I didn’t know any of that stuff. So I’m like, “Oh, it’s cool people are making money with this” but I don’t know the first thing about it. And I didn’t have the money to order the course. So I went to eBay and I started looking around to see if I could find discounted course that I could buy and start learning. And I did, I think, buy an Carlton Sheets course on eBay and read through it. Didn’t understand what I was reading, anything, and I kind of put it on the shelf and it’s just kind of, yeah, maybe this isn’t for me.
But I ran into an individual that was going to the same school as I was when I came down here to go to school, further school. It was actually seminary school, and he was at the same school and he had Ron Legrand courses, and he’s like, “Hey, why don’t you check these out and if you have new questions, we can partner on deals and stuff like that.” So he was the one that got me into the circle of creative real estate like Ron Legrand and dealing with lease options and wholesaling and all that kind of stuff. And I bought, he actually assigned me a lease option deal. I gave him $1,500 to buy this lease option deal from him. And that was my first real estate deal. And without going to a whole bunch of details, it ended up that the tenant couldn’t buy the property and ended up suing me for her deposit, which I never got because I was just the one that signed the deal.
And the way I got out of that deal after going to court and learning all the fun things that goes along with that was I wholesaled the deal and actually made like $15,000 when it was all said and done. I mean it wasn’t your perfect deal. It was money. I turned lemons into lemonade and I created some money out of it and wholesaling was the way I did it. And I-
Cody Hofhine: That’s your smoothie that you bought from the infomercial.
Alex Joungblood: Exactly. I figured maybe, maybe this was the way here that I could make some money on this. So that was my first intro to wholesaling.
Cody Hofhine: Okay. Now fast forward, because sometimes it’s out of, “I was doing this and it didn’t work and then all sudden I fell upon this and it worked and it happened to be wholesaling.” Now let’s fast forward to where you’re at today and what that looked like for you today, by the way.
Alex Joungblood: Well today, I am wholesaling still and I do that because it is the shorter, quicker money that makes everything run and I’m also doing renovations or maybe more along the lines of prehabs and a prehab is basically a wholetail deal. So I’ll buy something, do a little bit of work to it, put it back on the market and I am still, I am doing new construction as well on small developments. So I’ve kind of gone, I’ve gone-
Cody Hofhine: Pretty aggressively upward, my friend.
Alex Joungblood: Yes, yes. So the thing though is, and to understand is, that you can’t just go headlong into say new construction or development or anything like that because you need to take care of your short term money first and wholesaling is what does that. And the way I kind of break down the kinds of money and the kind of deals that you need is first, you need wholesaling because that takes care of your bills today.
Second, rehabbing or prehabbing or wholetailing is a little bit longer and it can put some bigger chunks of money in your pocket. And maybe it’s a two or three months process, maybe less.
Cody Hofhine: But the best part about those wholetail deals, or those prehab deals, where are they coming from? I mean it still starts with that, wholeselling.
Alex Joungblood: It’s still selling the marketing. Everything originates with the marketing, which you know is what drives the wholesaling business.
Cody Hofhine: And the wholesaling hat on. You start with that wholesaler hat and you can kind of choose from there where you’re going to go with it.
Alex Joungblood: Absolutely. And then a new construction is a longer term play. You know it can be six to nine months, could be a year, but if you get enough of those in the pipeline, when those start to pop, it’s great. So I try to cover my bases from all angles.
The only thing I’m missing there is a bunch of rental properties to have passive cashflow from. That’s my set up right now and that’s what is working for me. And I don’t count on the new construction for my money to live. I count on wholesaling, and when a new construction pops, it’s just gravy.
Cody Hofhine: Awesome. So Alex, let’s do this. Let’s help our listeners understand. I guess now that we’ve talked a little bit about what you do, how you got there. You do have, by the way, a very successful Facebook group called Wholesaling Houses Full Time.
Alex Joungblood: Yeah.
Cody Hofhine: Within that group. I go in there almost daily, by the way, and I just love that you’re amongst a bunch of wholesalers and there might be some like new people in there that, but that’s the beautiful thing. You’ve got some high-end experienced people, but then you’ve got the beginner that’s like, ah, I don’t know anything about wholesaling.
And they jump in this group and they just get jazzed and excited because they start to learn, they start to hear and they start to see all these people just posting deals, posting pictures of checks. And it’s, it’s pretty dang motivational.
Alex Joungblood: Absolutely. Absolutely. Yeah. And the reason I founded that group was, and you know, some people disagree with me on this, but I wanted a place where I can go and talk about wholesaling, talk about deals that I’m doing, talk about negotiating or just talk about real estate in general without having to put it in front of everybody else in my, that are my Facebook friends, like family and people I know from here, there and everywhere. I didn’t want to be bombarding them with that stuff. So that’s why I started the group and I felt this is a great place where I could talk freely about real estate and get out, or get advice from other people and give out advice and almost have a really cool virtual mastermind, if you will.
Cody Hofhine: That’s awesome. And I think you have, by the way, successfully created exactly what you want. That mastermind, I would call it a mastermind, I’d call it definitely a place that… We all have that. The friend that posts all this stuff and the multilevel marketing crap and like, what the-
Alex Joungblood: Yeah.
Cody Hofhine: … Crap is this guy selling? So I get it. But now you’re putting your product, your thoughts and everything about wholesaling amongst like-minded people. Like it’s Jim Rohn at its best. You’re now collectively putting it in front of the, well, he says the, what, the average of the closest five people you hang out with. But now you’re just, it’s just for people that are wholesale minded and I love it. I absolutely love the group.
Alex Joungblood: Yeah, it’s funny because if you just talk to people, just your regular friends that you know, and you talk about some of the stuff they look like, they look at you like you’ve got three heads, you know? And you just need a place where you can talk and people understand what’s going on. And when you throw around numbers like, “Yeah, I bought a house yesterday and I sold it the other day and I made 30,000” they’re like, “What?”
Cody Hofhine: “Bull crap. Alex is paying for dinner tonight.”
Alex Joungblood: So when you can talk to people that understand that and appreciate it, and again, not coming off in a braggy, a braggadocious kind of way, but just in a normal conversation, that’s what elevates your game and elevates you in a spot where you’re hanging about with the right people that understand what you’re talking because, and not to be arrogant or cocky in any sense of the way, but if you’re hanging around people that their reality is that they’ve got to go and trade all of this time to end up with this amount of money at the end of the day, and that’s what they do, it doesn’t jive with what you are doing. And in that sense, it could adjust your mindset to the trading time for dollars rather than, I create results, I create value and that’s what I get paid. That’s what I get paid on.
It’s not punching a clock and it’s not showing up and at a certain time to a certain job, to a certain boss, to a certain desk, to a certain office. It’s not about that. And if you’d say that again to somebody, it could be demeaning to a friend-
Cody Hofhine: Sure.
Alex Joungblood: … Or a relative and you don’t want to come across that way.
Cody Hofhine: Sure.
Alex Joungblood: But again, that’s what I said. You know, I created the group so that I could talk freely and people could appreciate the things that I’m talking about and as well for me to glean from other people and to create a network that elevates net worth, not just for me, but for everybody else around.
Cody Hofhine: Love it. Love it. So let’s do this. Let’s deep dive a little bit about what you’re talking about, how you don’t have to go out to the nine to five, put the money in the 401k and have your boss match it penny for penny or 50% or I’m staying here cause I get health insurance. But let’s go into this side of things. What Alex is doing. We’re going to talk about wholesaling rhino nation just so we can kind of understand, keep it right here and simple. Alex is going to help us understand quickly things that are working for him and quite frankly, work for a lot of people. So Alex, when we talk about wholesaling, what is like, we all know it starts with that marketing. What is, and I say this, what is your favorite, I know you do a lot of marketing channels, but if you could nail down one, what would that favorite marketing channel be, where you feel like, man, I love this, it’s overlooked or how does it look for you?
Alex Joungblood: Well that would be direct mail. Direct mail is so scalable and in fact I just went on my Facebook group and did a Facebook live about how somebody can scale into direct mail so much easier than a lot of different other pro or marketing channels out there because it’s so, it’s so data driven and there’s not a lot of guesswork that goes into it if you do it right.
Cody Hofhine: What do you mean by data driven?
Alex Joungblood: Meaning if you were to look at a list of all the different transactions that are going on in a certain market, right? You could go in and take that list and find where the hot areas are, because you could see this area shows the most activity and you can take it down even to a subdivision and you could start in that subdivision and you can say, “Okay, this subdivision is hot. I’m going to blast this subdivision with marketing and I’m going to just focus on getting one deal out of that.”
And maybe it’s only $200 spent. And maybe, and I’m not trying to think small, but maybe you just make two three, four or $5,000 out of that. Well, if you can turn 200 into $5,000 or $200 into $2,000, I mean I’d go to that casino all day long, right? So-
Cody Hofhine: All day long.
Alex Joungblood: And once you do that, you could take that, the remainder, so let’s say it’s a $200 that you’ve spent and you turned it into let’s say 3,000 so now you’re left with 2,700, take that 2,700 and attack that entire zip code. Or if you wanted to expand it amongst a bunch of other subdivisions, you could do that, but you slowly begin to expand out and let the business fund itself. This is very easy to do with direct mail. You can’t do that with a lot of different channels.
Cody Hofhine: I love the fact that you’re pointing out something so important for everyone to know is direct mail ends up being really the most scalable form of marketing in the sense of, you start with, like you just said, a subdivision and it could grow to a whole County, to two whole counties, three whole counties, four whole counties, five counties, all your neighboring counties to sky’s the limit to where your, I don’t know if you do any kind of virtual, I don’t yet, but I think you do, right? Do you virtual wholesale as well?
Alex Joungblood: Oh, absolutely. Yes.
Cody Hofhine: So to where you can scale your marketing, your direct mail to other markets because it’s so scalable and that is such a good truth that everyone needs to know that a lot of marketing is really tough to scale. But direct mail, it seems like it’s almost infinite how scalable you can make this.
Alex Joungblood: Wash, rinse, repeat, that’s it.
Cody Hofhine: Love it.