When one door closes, another opens. Rafael Cortez sits down with Geno Kyle to listen to his story of getting fired and coming back stronger than before. He explains how he used anxiety and uncertainties of leaving the automobile industry as a chance to join the Rhino Tribe and get into wholesaling. Geno talks about finding purpose in real estate, the lessons he learned these past months, and his plans for the future. He also breaks down three of his latest deals and his major takeaways for each one.
How Getting Fired From A Great Job Led To Explosive Success In Wholesaling With Geno Kyle
When one door closes, another opens. Last November, after 25 years’ worth of experience as a car salesman, Geno Kyle got fired. But instead of feeling anxious amid uncertainties due to the pandemic, he saw this as an opportunity to join the Rhino…
I’m bringing again another big case study. We are sitting down with one of our Rhino Tribe students, Geno Kyle. I want to break down his process, his path. He joined the tribe and then started going through the process and the results that he’s had have been unbelievable. This guy sits on the phone and he’s got the coolest, most laid-back demeanor that I have ever seen on anybody. He’s got that radio voice. He can almost sweet talk to you without even trying to do so. What gets it through the door is that he has that tenacity, that grit. He’s so methodical about the approach that he takes. I’m excited to break this down. He’s had a bunch of closings in a short time. I want to dive into that. We will break down the case study and figure out where the leads came from, how he got them all negotiated and what his current status is as far as the business goes. Geno, thank you very much for being here. I appreciate it.
Thank you for having me.
You started. You had some experience in real estate before then but mostly you are coming from a background of sale. Walk us through that.
I had 25 years’ worth of sales experience in the automobile industry. I started off as a car salesman in 1994, 1995, then graduated to management and obviously, became a sales trainer for the last several years. I have done everything in the car dealership but owning a franchise. I heard seven words that changed things in my life and it set me free. They came into my office one day and they decided, “We decided to part ways with you.” It was probably one of the best things that have ever happened in my life as far as my career path is concerned. It’s crazy because you thought it would have been one of those things that I would have been upset by it but when I’ve got home, my wife was like, “You are taking this extremely well,” and I was like, “There’s a different pathway for me to go.” If there was anything that said to me, it was time for me to make a change, take my skillsets, my abilities and apply them to trying to further myself in this. I’m glad it happened.
It’s incredible, the amount of uncertainty that can happen when you dropped a bomb right on your feet such as that one. Especially if you have spent decades in that particular field, and then something happens and you have that safety blanket pulled from underneath you. I can imagine the level of uncertainty and doubt. It can be construed maybe as fear but a lot of times it’s either turned into fear and passiveness so you just sit there and mope on it or fire and drive for achieving, and creating something bigger.
For me, it was like the door of opportunity may have been open for a long time. I was in such a good position and I was making great money. I didn’t walk out the door so I’ve got pushed through the window of opportunity. One way or another, I was forced to take advantage of it. I’m glad I did. It was an incredible experience for me for 25 years in terms of my growth and my development professionally. Now that I’m applying it to this, I can see it going somewhere.
You’ve got tossed out of your comfort zone. Anybody who’s read a book on personal development knows about the comfort zone and how uncomfortable it can be after years of staying there. It’s something that can pivot the path of your life. For you, it took you over to wholesaling in real estate, which is exactly where you are at. Tell me about your experience in real estate. How it started and how it’s going?
It started with you guys. I started thinking about doing it way before I made this transition because I have heard so much about it. I started researching it and looking at the videos. I’m sitting up there thinking, “Yeah, right.” I’m serious, I didn’t believe it. I knew that people were making money in real estate. Hearing the whole concept of no money, that was like, “Here’s where I’m getting off the train because I don’t believe this at all.” I have owned numerous properties before and I didn’t see or couldn’t wrap my mind around that. I started doing it and it was like 2.5 to 3 weeks in I didn’t believe that I was over my head but I know I needed something extra to help get me over this comp to help me wrap my mind around this entire business. That’s when your name popped up. I’ve got a phone call and I made that decision that if I was going to put my money on somebody I was going to put my money on me because I knew eventually at some point in time, I was going to win. I jumped into it with you.
By that time, I had already started running the list and cold calling people off my cell phone. I had appointments lined up. I didn’t know what I was doing but I just knew that I had what it took to succeed. I knew I was hungry as well. Not to mention the fact, I set fire to a boat that I have been sailing on for the last 25 years. I had nowhere else to go. When I heard about the Rhino Tribe and I jumped in it, I was like, “This is going to be what I needed.” It has been a great experience for me.
It’s almost like drinking from the fire hose at the beginning if you started with it. Also, one thing that I see often happen with students that join us is they have been looking at YouTube. There are a lot of great information out there but the process is not laid out. You end up with like a box of Legos. You have the pieces but you don’t necessarily know how to put them all together. You may have the skills as well but you don’t know exactly where to apply them and create those conversations. This is an industry that is not terribly complicated but it’s not easy. There’re ups and downs. There are a lot of rejection, which is one of the things that we go through. On the training, we talk a lot about that even during the coaching calls and all that. It’s the grit and the tenacity that you have shown since you started. This conversation that you are having internally with you and jumping on it. You are talking about December 2020. It has been amazing to see the path and the growth. At the end of the day, it rests on the actions that you have taken to get you there. That’s more of a testament than anything else.
If I could add to that as well, I don’t think it’s the fact that it’s so difficult that people can’t understand it. In between watching a video and doing a transaction, there are some pretty crucial steps that you need to be aware of along the way. I believe it’s okay to not know what I don’t know because I’m going to learn a lot more from failing. You are going to fail anyway so you need to accept the lessons that come along from it. If you could shorten the pathway of that learning curve, which what the tribe had meant to me, that was the biggest influence. Now I can wrap my mind around it all and this is all coming together. I’m hearing other people as far as what they are walking through in regards to the process, having an organization and the structure in place. Once I have seen that I’m like, “Now I can get into the fire.” That’s what it’s meant for me.
Thank you very much for the feedback and the compliments. Again, your steps to action, you just jump in there and you have been committed right out of the gate. You have been doing stuff, taking all the action steps and crushing it. We have jumped on live calls and everything. We have had conversations. You have shared a ton of wealth with the tribe. I want to give you kudos. You had these big buyers and you didn’t hesitate on sharing that with everybody else. That to me was amazing.
There are so many things that I learned in such a short time even from the forum. Being able to go on that forum live and get to the point where you could hear a guy like Bill Rathman that has that much experience in the real estate business to work. Not only he can provide the input. He was telling you the why. He turns around and puts supporting evidence in that thing. That played a tremendous influence on me. Being a sales trainer, being able to recognize the importance and the value behind having that experience available to me has helped me out a lot, too.
Putting it all together and it’s one big package. Let’s dive into the meat and potatoes of the conversation. How many deals did you close? You closed a few deals.
It was three deals. You had three that were lined up and they all popped. Let’s break them down. How did you find the leads? What’s the method that was working for you?
The thing about it with me is that I know I wasn’t good at this. I believed that I threw money in directions earlier that I didn’t have. When I had caught myself doing it, until I had learned to master the telephone, I wasn’t spending any more money on anything else. I felt like, “Until I can masterfully swing this sword, why would I take on another one?” I needed to prove that to myself. Some of these deals that I had, were strictly from a cold call. In my first fifteen hours on the telephone, I had six appointments. My wife is looking at me like, “You are going to be a millionaire.” Little did she know I didn’t know what the hell I was doing. I knew that if it takes me to get on his telephone and speak to someone about this, this is what I’m going to do. More importantly than anything else, the telephone is a great training tool as well to get a feel for people, the flow of the conversation, what you should be doing and what you should be saying. It played a tremendous influence in regards to my competence as well.
One of the deals that I had was across the street from a property I had already owned. I let the guy keep some siding in my garage because I have known him for years. I drove home one day because one of my tenants hadn’t paid me my rent money. I just happened to be across the street and I walked over to his house next door and knocked on the door. His girlfriend came to the door. I asked her where he was at because I just wanted to know what he wanted to do with that siding that was in my garage. “I didn’t know. He hadn’t worked on the house in months. Unfortunately, he was in jail.” I said, “Do you know when he’s getting out?” She was like, “I can’t get the bail money.” I was like, “What’s his bond?” She was like, “It’s $2,500.” I was like, “What are you going to do?” She was like, “I don’t know.”
I was like, “Do you think he would sell me that house if I could help you guys get out of this situation?” She’s like, “It’s not his house. It’s mine.” I was like, “What if I gave you the $2,500, would you sell me the house?” She says, “I would sell you the house.” It had a couple of code enforcement violations on it. I was like, “What about the siding?” She says, “For $2,500 if I sell you the house, I can’t do anything with the siding.” I went and got her $2,500. We signed a quitclaim deed and I had the house.
I called downtown code enforcement. A friend of mine answers the phone. She tells me, “Geno, if you clean it up and take pictures and send it to me, I will go ahead and waive it.” I went down to my uncle with a pickup truck, gave him $200. He cleaned it up. I took the pictures. She pulled the code enforcement violation off of it. My cousin hadn’t paid me to rent in four months. He and three of his buddies turned around, put the siding on the house. I went to Menards and bought two doors. The house already had windows in it. We put the siding on it and it was gutted on the inside.
I was interacting with an investor that was out of town who was buying fifteen properties. I said, “Would you like to have sixteen?” He says, “Why not? Give me the address.” He pulls the address up and from the Google picture, that house was a total wreck on the inside. It had no siding on it whatsoever. He was like, “You are nuts. What do you want for it?” I say, “Would you give me $25,000 for it?” He says, “You have been smoking.” I said, “What pictures are you looking at?” He says, “I’m looking at the pictures from Google and the house is a wreck.” I said, “Why don’t you ride past it? I will put a lockbox on it, maybe you can walk through it, give me a call and let me know what you think.” He pulls up to the house. The house had doors on it. The siding was already on it. It was standing tall on the outside. He walks inside the house. He says, “I won’t give you $25,000 for it but I will give you this.” That was the one that yielded that $17,500 deal.
You sold that and you flipped that property. You bought it for $2,500. The seller owned it free and clear?
Free and clear. No liens are on it other than a code enforcement violation.
You went straight to the conversation. You went straight for the kill on that one. It’s interesting to see the difference in price points. What market was that in?
You can’t allow other people’s perceptions to become your reality.
For those who don’t know where South Bend is, that’s in?
South Bend is in Indiana. It’s where the University of Notre Dame is at.
It’s not far from the University of Notre Dame. $25,000 on that property, did he buy it from you for $20,000? $20,000 minus the $2,500, $17,500.
He was winning anyway. The tax assumed value on the property was like $74,000. I owned two other houses on the block. My aunt lived in the house that was next door. He was like, “That’s fair for the amount of work that I need to have to get into it.” That one happened to work out. That one fell right on top of the other two that I had.
$17,500, that’s a quick deal. It was almost in your atmosphere already but you hadn’t seen that before, right?
Not at all. I was going to check on the status of what he planned on doing with the siding that was in my house. Lo and behold, it was not just a distressed property but they were in a distressed situation financially. It enabled us to get them out of it. She was like, “For ten years, it has been sitting here. I can’t do anything with it. We didn’t have the money. We were trying to fix it up as far as windows and gutting the house.” It was already gutted out. That was an expense that the person who buys it didn’t have to spend as well. It happened to work out.
That closed and you had two other deals that were stacked on top of that?
Yes, my first deal. I will tell you something else. One of the biggest things that I had to overcome is, you can’t allow other people’s perceptions to become your own reality. The three deals that I had, I had people cussing me out telling me that they weren’t deals. They were telling me that’s not a deal or telling me what can be done or what couldn’t be done. The whole thing about it is if I would have listened to those people, I wouldn’t have made any money.
You have to come to your own assumptions and you get that through experience and your trusted network, the people in the process that you have around you. It makes a huge difference.
You’ve got to hustle. You’ve got to figure some things out. It’s not going to always layout exactly as it should. We can get caught up in what people tell us can’t be done as opposed to what can be done. It only takes one person to say, “That’s a good deal. I will do it.” That’s what happened.
What did those two other deals look like in terms of numbers?
I had one deal. Everybody told me that it wasn’t a deal at all. The one deal that I had that got closed, they sent an inspector in. The inspector tells the end buyer that the house needed $35,000 in repairs. That balloon had blown that deal apart. Just as I’m about to give up on it, I have been networking with a contractor that was like, “I know an investor that buys properties and holds on to them.” In the conversation, I told the guy that, “In terms of a 65% to 70% rule, I’m telling you now this property is not going to apply to that. I believe it’s a great buy and hold the property for someone especially long-term.” He says, “Let me look at it.”
We are walking through the house. It’s not $40,000 worth of rehab. He got another for $8,000. I showed him some comps that if you added a half bath to this house, it would take the ARV up to $12,409. He says, “It’s not like I was going to sell it anyway. Now that you mention it, I can do that for that amount of money.” He makes me an offer that I’m like, “That’s not going to work.” I go back to my seller. I get her to lower the price to $38,000. I call this guy back and tell him, “I can’t make the deal work. I’ve got to be at the $54,000.” He says, “That’s fine. I will do it.” He takes it for the $54,000. It’s one thing after another. If it’s going to happen, you are going to have to make it happen.
You’ve got it for $38,000 and you sold it for $54,000. Was that on the same day as the other one or was it after or during the same week? When did it happen?
One fell on one week and another one fell on the other week and they happened to close in the same week. He was like, “I’m not waiting. Let’s go. I know what I’ve got here. I know I’m not losing.” The house was in great shape. She ran out of money. He needed to repair two bedrooms upstairs and replace a window.
It was an easy move-in-ready type of deal?
Yes. The house was in great shape.
You have $17,500 on one. You have $16,000 on the other one and you still locked the third one up. What was the source of the lead for this $16,000 deal?
She had a for sale by owner sign in the front yard.
For sale by owner. Were you driving for dollars?
I was driving for dollars and she was walking down the street and I passed her. She walked up to the door and then I turned around.
It’s almost serendipitous.
I’m like, “Are you selling that?” She was like, “Yes.” I’m like, “I notice you don’t have a price on it,” and she was like, “I’m not putting one on it. I want somebody to make me an offer.”
It’s okay to know that you know nothing. You will learn a lot more by failing.
That’s what I do.
We started talking and after a week or so, I had given her my card, she called me back and she was like, “Maybe we need to talk.” Lo and behold, she was moving to Atlanta. She was underneath the time crunch. She wouldn’t take anything less than $47,900.
At this point, if we go down the line of the pre-qualifier is you have the condition of the house so condition is applicable. You have motivation because she’s moving. You have the timeline because she’s moving and the price also makes sense. That’s the perfect scenario right there. Had you not picked up the phone on that for sale by the owner, which a lot of people don’t, you would have missed out on $16,000. How crazy is that?
If you don’t think it’s a deal or you can make a deal, it’s that phone call you don’t make, it’s that door you don’t knock on or it’s that question that you don’t ask, that’s the one that’s going to keep you from where you want to be.
Sometimes you just have to get a little bit creative on how to structure the deals. You’ve got to see the different angles. This may not be a deal for somebody who flips the house but it could be a deal for somebody who buys and holds the house and has a bunch of rentals. You have to come at it, step back, look at the big picture and take time to have some critical thinking in there. Figure out what the best course of action is for the negotiation of the property, the solutions that you can provide and the sale of the contract whenever you talk to your end buyer and whatnot. There are a lot of pieces that go in there. At the end of the day, it all comes around the idea of solving a problem. You have pretty much pre-qualified that lady right there on the spot. If that’s not a lead, I don’t know what it is. What’s the third one? Tell me about the third one.
One was one of the first ones that I had gotten, another property needed very minimal repairs. Everybody is telling me, “You are nuts. You should be having it for $15,000,” after I had an under contract. I’m not letting other people’s perceptions of what they conceive to be a deal become my reality. To make a long story short, I’ve got connected with some guys. The guy was like, “We don’t do anything but buy and hold. As far as we are concerned, let us send our contractor out.” He had a great rapport with the contractor. He calls him back and he tells him, “You need to jump all over it.” We came to terms on that one and that one closed.
What was the spread on that one?
It’s about $7,400. That was my lowest one. It seemed as if I was getting dejected behind it. The most important thing was that I had a deal and I had seen it come to pass. That’s probably $41,000 in a week. Every little bit helps.
A little bit? That’s what people are making in a year.
I’ve got a fourth one under contract in South Bend, too. I’m hoping I can pull another maybe $16,000, $17,000 out of that one. We are moving forward.
You have a pipeline that’s fed. You are still prospecting and doing lead generation, all the activities behind it.
I’m putting my money right back into my business and working on a little bit more lead generation.
Treating it like a business. That’s the thing.
You better believe it.
You’ve got to treat it like a business.
I have been very fortunate. I’m blessed. I’m going to start investing in a couple of VA’s and doing some RVM’s. Start expanding this and watch it grow from there.
You are making leaps and bounds in a very short amount of time. It’s amazing. It’s great to see you grow, to be part of the journey. You are closing over $40,000 in profits and deals in a matter of two months starting right out of the gate. Imagine where you are going to be in 6 months and 12 months from that.
I’m excited about it.
That’s a beautiful thing about following the process, mixing the linear process in building a business while having that tenacity, that grit to stay on it and that desire to make things happen. At the end of the day, that’s what it takes. You made a good point that, before we sign off, I want to highlight. You were talking about cold calling and how that has been one of the things for you. Cold calling, a lot of people try to shy away from it because, “Cold calling is not my thing. That’s not my style. I would rather do pay-per-click and have the leads come to me.” That’s fine and dandy but a cold calling, what it does is creates skin. The thicker rhino skin that we need to deal with sellers and rejection. That’s one.
You have been good about having that consistency, making the calls, having those conversations and breaking them down going through the process of discovery, the negotiation and all that. What all that cold calling has done is prepped you for those negotiations to not be shy and shoot on the spot. It’s like target practice. It’s putting in the reps for the real show, which is when you are sitting in front of the seller and negotiating that property or having an actual negotiation over the phone. If you are not exposed to talking to people and getting rejected, you are going to be super intimidated. You are going to be shy. You are not going to be confident by the time you get to that negotiation part of the deal. That’s when the next guy gets it.
You will never become great at doing things you like to do. You will never become great at doing something, “I love doing this.” When you look at what it is you love to do, is that what’s making you who you are as a businessperson? The most grueling and grinding part of all of this is being able to find comfort in being that uncomfortable. Nothing makes me more uncomfortable than being on a telephone but then there’s nothing that gives me more confidence than once I’m off of it or once I have set an appointment or once I close a deal.
I feel like I pushed a rock up the mountain and now here’s where the game starts. I don’t look at it like that. It’s like boxing. He didn’t become Floyd Mayweather by only boxing in the actual fight. There’s the training and the hard work that goes into it before you arrive. Until you can get comfortable knowing that you are not going to arrive until you move that aspect out of the way, it’s going to be hard. I have known that for years anyway. I never had a problem going after it that way.
That’s a very strong and needed state of mind. That’s the mindset that you’ve got to have. I’m not saying cold call for the rest of your entrepreneurial career. It’s not that but it does cut the curve on that transport on that confidence and that experience that you are going to need. I encourage people to have conversations. Find a way to have conversations with people one-to-one. Why? You are going to get rejected. You want to get that out of the way. You want to build that thicker skin right out of the way. Few weeks into it, you are not even going to feel the noes and the, “Don’t call me again.” It’s not going to matter. It’s going to be another, “This person is not interested.” You don’t take it home. It’s not ego or any of that stuff. It’s target practice. It does make you better at the end of the day.
You better believe it does.
Most people get caught up in what others say can’t be done as opposed to what can be done.
It makes you better at discovering and reading between the lines, finding what the real issues are as opposed to trying to assume what you can come in, solve for the sellers, that much being better at negotiating properties and getting win-win solutions on both sides. Geno, thank you so much. It’s been a blast having you. I love the journey that you are on. I’m very proud and honored to be a part of it. I can’t wait to see what you will do in the future. It’s going to be insane. You are on the right track. You are on a rocket ship now. You are doing big things, believe it or not.
You tell Adam I said congratulations. You need to let him know that I’m coming with a bigger one.
Now it’s one-on-one.
You need to let him know I’m coming with a bigger one next time. I’m so thankful that I had this opportunity to connect with you and help bridge some of these gaps that I’m going through. It’s playing a tremendous influence on me. I’m looking forward to where this is all going. Maybe 4 or 5 years, I may still be jumping on the same forum but I don’t care. I’m lucky to be with you guys. Thank you.
I’m glad to have you as part of the tribe.
There you guys have it. For anybody who’s interested in finding out a little bit more about what we do at Wholesaling Inc, go to the Wholesaling Inc website. Have a quick conversation with one of our guys. If it makes sense, feels good and it’s something you think that you can carry on, go ahead and sign up. I look forward to working with you after that. Until then, stay focused. You’ve got this.
- Geno Kyle – YouTube
About Rafael Cortez
Born on January, 30th 1983 and raised Yuma AZ Rafael Cortez is a second generation entrepreneur. He began his first job at 14 at a local Grocery Store. From 15 to 18 years of age his work experience included everything from hard labor in construction to supervisory positions in retail and customer service while attending the Fire Science Program at Arizona Western College. At the age of 19 he became one of the youngest Firefighters in Yuma County, where he spent the next 5 years of his professional career.
He saw opportunity and began working on his first entrepreneurial project, a Non- Emergency Medical Transportation business at age 21 while providing EMS and Fire services in Yuma AZ. Rafael launched Netcor Transports LLC, his first company opening day May 1st, 2007 at the age 23. Maintaining constant logistical and economic growth since its foundation Netcor was sold in the summer of 2014.
Rafael is currently an Organizational Psychologist and real estate professional holding ownership in multiple companies in various verticals. Base of operations is in Phoenix AZ.