We learned in Episode 65 that 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.
Today we’re digging into one of his biggest deals, which wasn’t necessarily an easy deal to close.
Wholesaling Inc & Alex Joungblood are doing something special for anyone who wants to start Wholesaling and is looking for help: Head over to Wholesalinginc.com/WHFT and book a strategy session with our team to take advantage of it.
IN THIS EPISODE YOU’LL LEARN:
- The importance of your WHY
- Why the most successful Wholesalers help solve people’s problems
- Why you can’t make a sale if your lead doesn’t have a fly away plan
The Year-Long Contract
This deal took over a year from contract to closing.
- The lead originally came from direct mail.
- They were able to negotiate the deal down to $167k, and at the time renovated properties in this area were selling for around $350k.
- The owner wanted to move closer to her children, but she was having trouble finding a place to rent that would accept her dog. Alex tried to help her find an apartment and connected her with someone to help with a mortgage.
- She wanted to sell, but she didn’t know where she was going to go. Alex learned from his mentor, “If they don’t have a fly away plan, then you’re in for a long road.”
- Alex was originally intending to buy the property himself but, during this months-long process, he found a buyer who was very interested in the property.
It’s important to note that Alex was repeatedly talking to the property owner and helping her overcome obstacles. If you can help the seller accomplish their goals, whatever they may be, then you are more likely to make a sale – and make it a win-win for both of you!
At the end of the deal, Alex walked away with a $26,000 Wholesale assignment fee.
17 Wholesaling Hacks
Alex has a program called 17 Wholesaling Hacks and he’s generous enough to share the first hack for free with Rhino Nation.
Go to wholesalinghousesfulltime.com/hack to discover the simple hack you can use to flip your first deal in 15 days or less (without spending a dime on marketing)!
- Listen to the Real Estate Investing Mastery podcast
- Join Alex’s Facebook Group: Wholesaling Houses Full TIme
- The 12 Week Year: Get More Done in 12 Weeks than Others Do in 12 Months by Brian P. Moran & Michael Lennington
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
Subscribe to Wholesaling Inc
Tom Krol: Okay. Today’s episode is part two of Cody’s interview with Alex Joungblood of Wholesaling Houses Full Time, the biggest wholesaling group on Facebook right now that I think is over 30,000 members strong. That is a rocking group. If you’re not in it, go there right now and get in.
If you haven’t listened to part one, go to wholesalinginc.com/podcast and you could listen to part one, which aired last Monday. Today is the conclusion of that episode where Alex goes really into detail on exactly how he finds many of his deals out there. He also goes deep into some of his direct mail marketing strategies, which I got to tell you are very, very interesting the way that he does these things. Enjoy the show.
Cody Hofhine: Okay, so with direct mail, let’s break down one of the most recent deals. Maybe you have one already in the pipeline that’s ready to close and you’re just going to go pick up a check Friday. I’m making these days up. But if you have something, what is a most recent deal and let’s deep dive this deal and get right into it.
Alex Joungblood: Okay. Well, it’s funny you mentioned Friday because actually it is closing Friday, but it was not an easy deal by any stretch of the imagination because the entire deal, from start to finish, is about a year.
Cody Hofhine: Okay, so let’s break this down. Put under contract a year ago, or I think what-
Alex Joungblood: Yes.
Cody Hofhine: Oh really?
Alex Joungblood: Yes.
Cody Hofhine: Okay. I was thinking this was going to be like a followup thing like Cody, the power of followup, but this actually went under contract a year ago.
Alex Joungblood: It did, yes.
Cody Hofhine: All right, let’s deep dive why Friday. Friday is going to be such an amazing day for you.
Alex Joungblood: All right, so this property came from direct mail. I went out there, I met with the seller myself and talked to her and she was asking, what was she asking? I think she was asking like, she wanted like 187 or 185 or something along those lines. I work with realtors as well and use them some as acquisitions managers.
Cody Hofhine: Okay, and acquisition managers, that’s the people that- Did they go out on the appointment or were you going on this appointment?
Alex Joungblood: Well, I went out on this one, but then for a follow up, I sent out an acquisitions manager or a realtor to go out there to look the property and really given me that a good idea of what was going on. We were able to negotiate it down to 167. Now at the time there were properties that were being renovated that were selling for, somebody sold one for like 350 or it was even more than that, but as you know, comps are comps and when a year goes by, that 380 number, if there’s no other comps that hold up to it, it’s hard to hold that number, right?
Cody Hofhine: Yeah. Yeah.
Alex Joungblood: I mean, it’s still a good deal at 167 but the problem was the lady was trying to find a place to go to. She was trying to get out of the house to find a place to go to so she could move closer to her children and was having a tough time finding the right price of rent, and that was going to accept a dog. She just took a lot of time in doing that. I think they even tried to qualify for a house at one point. I even set them to my mortgage guy and said, “Hey, talk to him. He’s great. He can help you out.”
I mean, it was just an overall process of trying to help find these people, giving them a place to go. One thing that’s important, and one thing I learned from one of the guys that I learned from wholesaling around here was, or just deals in general, he would always ask me, he would always say, “What’s their flyaway plan?” He said, “If they don’t have a flyaway plan, you’re in for a long road.”
That’s absolutely, absolutely 100% true of what this deal was, because they didn’t have a fly away plan. The people have to be ready to go or know where they’re going to go, or else it’s just going to drag out like this one did.
Cody Hofhine: Tell me this. Here’s the best part about this and this is what I absolutely love about how you wholesale is this takes place almost a year ago or maybe a little over a year ago this deal, but irregardless of how long this has taken to get to Friday payday, multiple times you have mentioned that you’ve been in contact with this individual, you’ve helped them try to find a mortgage individual. You’ve probably helped them try to find apartments that are pet friendly.
This is yet another point that every listener needs to be putting down. If there’s one thing you could write down today, I’m telling you, it would be exactly what Alex is sharing on here. It’s helping the people. When you are truly there to help these individuals, the byproduct is what Alex is going to get to in a little bit, is you’ll get paid for doing that, and this is huge. Yet another good point that you’re saying. You’re helping along the way. Is it easy? No, but irregardless of that, you’re still helping this individual accomplish what they need to accomplish.
Alex Joungblood: Yes. Yes, absolutely. I mean, you have to help them. They have to have a place to go. I mean, you can’t just go out on the street. Right?
Cody Hofhine: It’s been a long time.
Alex Joungblood: Yeah, and that was important, and in this situation it was important because she’s an elderly woman and not in the best of health. Here’s the thing too. Along the way on this, it took us a while to get the contract signed because she didn’t want to obligate herself to something, when she didn’t have a way where she was going. She knew she wanted to sell, but she didn’t know where she was going to go.
We finally got the contract, but we had the contingency that we would not close until she had a place to go. Now I knew I had to get the contract on this because it was such a good deal in such a hot area that I wasn’t just going to say, “Okay, call me back when you know where you want to go.” We had to get that contract and get it locked up and taken off the market so that we could secure that value.
Cody Hofhine: With that, how many like touches throughout this whole year, how many times have you been in communication with her to help her [crosstalk 00:07:29].
Alex Joungblood: Yeah. Text or phone call or anything?
Cody Hofhine: All of the above.
Alex Joungblood: Oh my word.
Cody Hofhine: Just so the listeners understand how powerful it is, what you’re about to say.
Alex Joungblood: A lot.
Cody Hofhine: Does that equate to a hundred times? Does that equate the 200 times? 1,000 times?
Alex Joungblood: Okay. You got the texts on the phone and everything. I mean, quite a bit. I mean, I established a relationship where she trusted me.
Cody Hofhine: That’s awesome.
Alex Joungblood: She could just text me and ask the question or whatever the case was. It just became just like a neighbor that you would talk to. The relationship was built, so that’s what sealed everything.
Cody Hofhine: That’s fantastic. Here we go. Fast forward. A year ago you put this under contract, you keep this relationship, you build this relationship, becomes as close as your grandma is to you. You’re texting her all the time. Your wife’s wondering why this cell phone number is always getting texts from her Verizon account. All this stuff is going on cause you’re building this great relationship and then it comes to Friday, it sounds like, is the big day. What does the big day look like, Alex?
Alex Joungblood: Okay, so I went into this deal with the intent that I might actually take the deal down and in fact that is important. You want to go into deals looking like the option will be that you’re going to actually buy it or for the intention of a hotel or whatever. The assignment side of it would be more of a, okay well I did decide to assign it because my contract is assignable.
Cody Hofhine: Yep.
Alex Joungblood: I went into it with the intent of potentially buying it just because if the 380 number was there, I mean, it would’ve taken a lot of money to get me there. It would’ve taken me probably $70,000 in renovations to get it to a 380 house and even then after it was all said and done, I probably would have made 40 or 50,000.
However, during the time that I had the property under contract, I’ve got a buyer that I’ve got a good relationship with and he’s bought several deals from me and he basically followed up with me all throughout this entire deal. He’s like, “Is the deal ready yet? Is the deal ready yet? Is the deal ready yet?” He would text me every week.
Cody Hofhine: As much as you text the seller.
Alex Joungblood: Yeah. He would say, “This is your weekly followup text. Is the deal ready yet?”
Cody Hofhine: Here we have after a year of him like blistering his poor thumbs because Alex had to nurture this deal for a year. What does it look like now that he is at the point of, Holy smokes you said yes, it’s ready. So we’re closing Friday, so what are we doing?
Alex Joungblood: All right, so I got it for 167 and my wholesale assignment fee is 26 thousand.
Cody Hofhine: 26 thousand dollars. Hold on, hold on. You know what’s going to go on here. Me and Tom have these babies. Get ready. The victory bell.
Alex Joungblood: Now, if you think about it, right? 26,000 for a year’s worth of work. I could go work at Walmart for that.
Cody Hofhine: I was going to try and think of a joke and I figured, ah, Alex will say his own joke and you nailed what I was going to say.
Alex Joungblood: However, it came through and the work that I did was texting occasionally, on the phone occasionally, so I will take that kind of work any day, and then when you roll it in with all the other stuff that’s going on, it just adds to the revenue for that month and it’s like a gift I guess you could say.
Cody Hofhine: That’s what I wanted to get to. If this was your only deal all year, that may be something to look at and you’re like, “Aw man, yes I know I got to stay in my pajamas and take my dog for a walk. But at the end of the year I made 20,000,” and if you were Joe, you’d have a treadmill under your office desk.
Alex Joungblood: There you go.
Cody Hofhine: Anyways, but with that being said, what does like your month look like, to kind of give them, and give our listeners an understanding of what you look like when it comes to wholesale and how many deals average and then typically what’s like the average assignment fee?
Alex Joungblood: Well, when I assign things, I like to assign them for a bigger amounts just because, and the reason why I got into new construction too is because a lot of those deals, sometimes you can only assign for five or 10,000 because it’s a slight margin and that’s not a bad thing, but I found a way to do the new construction and get the bigger payday on the back end rather than just taking the five or 10 up front. I could easily just put it in the pipe and get 50 or 40 to 50 on the back end and that’s what I’ve opted to do. Wholesaling wise, I really don’t like getting less than $10,000 if I can.
Cody Hofhine: That’s fair, that’s fair.
Alex Joungblood: Along with that deal for 26 there’s another deal for 10 and then there’s another deal for 10 and then one of my [inaudible 00:12:38].
Cody Hofhine: That’s just this month, in December?
Alex Joungblood: Yeah.
Cody Hofhine: Okay.
Alex Joungblood: In my virtual market, we’ve got one that’s closing. I’ve got a partner on it, but I think we’re making like 45 on that one, so if you add everything up, 45 plus the 25 that’s what, 70 plus and then 10, that’s 80, 90 so something like 90,000 for the month.
Cody Hofhine: A 90 thousand dollar month. That is where you start looking at this and you’re like, “Holy smoke, now it’s an actual business that can be life changing.” I mean, that’s more in one month than the average person can make, like you say, when we’re kind of joking, like at Walmart for the whole entire year and on top of that 60, 40, 60, 80 hours a week. Are you doing that? Are you doing 40, 50, 60, 80, 100 hours a week, or what does that look like?
Alex Joungblood: Not in the sense of working the wholesaling business, I mean, other things that I do and if I’m not doing work in a manual labor sense. I do a lot of other things.
Cody Hofhine: Working on your business, but not necessarily in it.
Alex Joungblood: On the wholesaling side, I have virtual assistants and an assistant that take the calls and things like that. If I go out on an appointment, and that might take me a few hours for that day, or if I just pick up the phone and call an acquisitions guy and say, “Hey, go out there and take a look at it,” then obviously that’s a lot less.
Yeah, it’s definitely not a 60 or 80 hour week, but also in December along with those wholesale properties, I bought on the new construction side, let’s see, one, two, three. I think I bought four or five other ones with private money and actually used some of my own funds for some of them. It’s a good month for December.
Cody Hofhine: That’s fantastic. Alex, here’s one quote I just heard this morning right before we jumped on this call. It was, “If your reasons aren’t big enough, then your excuses will be.” What is your why to help people understand how powerful and why you need your, your reason, your why? What is your why to help our listeners understand like the mindset behind Alex Joungblood.
Alex Joungblood: My why is my family. I have a beautiful wife and four small kids. I have an eight year old boy, a six year old boy, a four year old girl and a two year old boy, so they keep me hopping.
Cody Hofhine: That’s awesome.
Alex Joungblood: Yeah, but my why is them. I want to provide them a life that is, I mean, I don’t want to say stress free because we all do have to deal with stress. It’s part of our growth, it’s part of our development, but I want to provide a life that I can spend as much possible time that I can with them and impart as much of myself as I can to them and not miss out on their childhood because I’m away at a desk job somewhere. You know?
Cody Hofhine: I love it, Alex. I absolutely love it. I’ve known you for a little bit now. I’ve actually been on yours and Joe’s podcast and I loved it, and as I get to know you, even through wholesaling houses full time, I can just see that. That’s what I believe is your biggest success. You have that why. You have that, for you, it’s your family and it’s that time with them, and I’ve always told myself is my own definition of success is when my family sees me more than my employees see me and I can tell you, I have never had that in any other business that I’ve ever tried to start up than wholesaling. It’s a business that’s been scalable, one that you can automate. Like you said, you can, you can get virtual assistants doing this stuff and then ultimately find your success where your family is seeing you more than your employees see you. Would you agree with that?
Alex Joungblood: Absolutely. That’s what it’s all about.
Cody Hofhine: Perfect, so kind of in closing, what are some good books, good things that will help my listeners switch that mindset? It’s something that will inspire them, motivate them. What’s a favorite book that you’d recommend for them?
Alex Joungblood: Let’s see. What’s one of the most recent ones I read? Look up to here on my shelf here.
Cody Hofhine: Are you still going paperback? You’re not doing audible yet?
Alex Joungblood: You know, I don’t find as much enjoyment as reading online-
Cody Hofhine: To each their own.
Alex Joungblood: …as I do a book in the hands and the smell of a book, you know?
Cody Hofhine: You’re kind of a big deal. You kind of have leather-bound books in your office and the smell of rich mahogany.
Alex Joungblood: No. These are paperbacks straight from the Amazon. As far as getting things done, I read, it was the 12 Week Year. You ever read that book?
Cody Hofhine: No, no, no, no.
Alex Joungblood: Okay, so the 12 Week Year is about getting things done and setting things up, and the premise is that we all get as much as possible done within the last 12 weeks of the year because crunch time is coming and decisions have to be made and things just have to get done. Everything is still, yeah, operate with blinders and you put everything to the side and you get those things done.
Well the premise is what if you operated that way all year? Take a goal and act like this is it. This is the end of the year is coming and get it done as if you only had 12 weeks left to get it done. As far as the end of the year is coming.
Cody Hofhine: Okay, so I’m going to add that to the show notes. The 12 Week Year. Do who that’s by?
Alex Joungblood: Let me see.
Cody Hofhine: If not, we can add that. While you’re looking that up, so we’re going to be adding the 12 Week Year, the link to that. Also, we’re going to be adding a link to Wholesaling Houses Full Time so that you can join what is one of the biggest groups on Facebook for wholesalers to meet, understand one another, get inspired, motivate one another, post your deals, your successes, your hardships. It’s not all easy. It’s not all, I was going to say, rainbows and unicorns. There is some hard time with it, but that’s why-
Alex Joungblood: Absolutely.
Cody Hofhine: [crosstalk 00:18:46] jumped back into that group and say, “Hey man, I’m finding difficulty here,” and you’ll see like 20 people chime in. “Hey Cody, you should try this.” Or, “Hey Alex, you should try this.” It’s an awesome, awesome group, that’s an abundant mindset, so I absolutely love what you’ve done there.
On top of it, we’ve talked a little bit about something for the listeners today by Mr. Alex Joungblood. What will that be, my man?
Alex Joungblood: All right, so if you want to check out Wholesaling Houses Full Time, definitely do that. With wholesaling, there’s a lot of different tricks or tactics along the way. I mean, ranging from negotiating with sellers to finding deals, to getting to the closing table, to working with your competition. There’s a lot of different things that surround the wholesaling business, so I have a program that is called 17 Wholesaling Hacks. It’s a program I did with JP Moses, and I wanted to give people the first hack for free, which talks about finding your first deal without marketing funds. If you’re limited to marketing with not having any money, then this is a great hack for you. If you want to go to WholesalingHousesFulltime.com/hack, H-A-C-K, WholesalingHousesFulltime.com/hack, you can grab that first Hack for free.
Cody Hofhine: Love it. Any last words of advice? If you could say, here’s what I would do, for the beginner, the one that’s struggling, the one that just can’t get it consistent, what would be that advice? If you could take it back and say, “Hey, if I was struggling or if I was just beginning, I would be doing this.” What would that be?
Alex Joungblood: If people are struggling and they’re looking to break free from their current position that they’re in, sometimes it takes absolutely getting somebody else in your corner to help get you over that hump. To help bring you to that next level. If people have been in my wholesaling group for any time they’ve seen that. You’ve jumped in there and you guys have done some Facebook Lives and given out some great advice that people really, really appreciate and I appreciate as well because the more content the better. It betters everybody.
So many people are trying to find a way to get to that first deal. There’s a lot of people in this business that offer coaching. Which you guys offer a great coaching program that cuts away all the fluff and gets down to the exact action points you need to take to get that first deal.
There’s different ways to approach this business. Some people are like, “I want to build this entire big empire, million dollars a year,” and all this kind of stuff, and that’s very possible, but you have to start at the beginning. Like they say, how do you eat an elephant? One bite at a time. You got to get that first deal, right? Getting a coach to help you get that first deal, if that’s something you are able to do, is definitely a good route to go, and by far your coaching program with the Investor Grit offers a great way, a great offer of getting a coach in your corner to get that first deal, and once you get that first deal, the sky is the limit. A lot of people ask about coaching and “Oh, should I pay for coaching and how much should I pay for coaching?”
Well, have to ask yourself, what can you make on a deal? I mean, we’re talking, the one I just did at 26,000 or even if it’s a smaller deal, like a five or a $10,000 deal, what is it worth if you’re able to do three deals that make you 5,000 each? That’s 15,000 right? What would you pay to learn to do that?
You guys make it very affordable and very easy for people to get in there, learn the things that they need to learn in order to get that first deal, and that’s why I’m happy to have you guys in the group contributing the way you have, and the success stories I see from all the people in the group they’re chiming in and they’re like, “Hey, I got this deal here. I learned this from Cody and Investor Grit over here,” and you just see people just chatting back and forth and all the business that they’re doing and it all starts with getting that first deal.
Cody Hofhine: I love it. Alex, thank you so very, very much. I couldn’t agree more in the sense of there’s people that are doing it. There’s people that are successful. You’re one of those people. There’s no reason to reinvent that wheel. That is awesome, awesome advice and thank you honest truth. I thank you from my heart, having the courage and faith and that in that program. we absolutely love what we do and I appreciate that.
Let’s give them the big old announcement here. Alex, I am going to include on this a link on this podcast to click to. If you are interested in exploding your wholesaling business and you want us to personally help you, me and Alex, we’re going to do Investor Grit and Alex Joungblood, we’re going to do something special for Alex’s listeners and for our listeners and you’ll click on that link below.
It’s going to be wholesalinginc.com/whft. That’s wholesaling inc, wholesaling I-N-C, dot com, forward slash W-H-F-T. Go to the show notes, click on that link and we’ll have a special opportunity for each one of you that go through that link.
Alex, I will say thank you so much for your time. I know it is valuable and you could be using this to further work on your wholesaling business further work on what you are doing in life and hanging out with your family, but you chose to be here and I thank you for doing that.
Alex Joungblood: Thank you man. Honored to be on the call.
Cody Hofhine: All right. All right, Rhino Nation. We have just had another amazing, amazing podcast from Alex Joungblood joining us and we look forward to have Rhino Nation with us next time. Take care guys.
Alex Joungblood: See you, guys.