Posted on: August 17, 2017

In just six months, Jeremy Beland started Wholesaling and closed four deals. We’re going to go back and dig into the first deal to see how he did, and share some of the mistakes he made so that you can learn those lessons, too.

 

The First Deal: Mistakes & Successes

  • Jeremy sent his first mailings (white, hand-written postcards) to a large absentee owner equity list… but he included the wrong phone number (Tom did this too!). Then he re-sent the mailing with the right number, and started getting calls.
  • He went out to look at a property with motivated sellers, but he ended up putting the property under contract for a little too much. He started marketing it to his cash buyers and… got nothing. He didn’t form relationships with enough cash buyers beforehand, which is an important but often-overlooked first step.
  • At the time, Jeremy had about 35 cash buyers on his list – now he has 150!
  • As Jeremy struggled to sell the slightly overpriced property, he got to learn more about the seller’s why by leveraging Question 4: “This looks like a nice property. Why are you considering selling it?”
  • Wholesaling has almost nothing to do with real estate. It’s all about finding why these individuals want to sell their homes. After discovering the why, you can help come up with a solution to solve their problem.
  • After developing better rapport, they lowered the contract to $140k and get more interested from cash buyers. Jeremy was able to assign it for $145k for a $5,000 assignment fee – and even more valuable lessons!

 

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Episode Transcription

Cody Hofhine: Welcome to another episode here on Wholesaling Inc., by Investor Grit. My name is Cody Hofheinz, your host, and I’m excited to be with you, Rhino Nation, as we bring on another rock star rhino to deliver nothing but massive gold nuggets. This guy’s going to take us back right to the beginning and some of his best learning curves, some of his best tactics and things that he can draw off of that has made him successful throughout the year. We’re bringing on Mr. Jeremy Beland, he’s from New Hampshire, and he started with the tribe in January of 2017 so in this short six months, he has already done four deals that has brought him up to about $17,000 in assignment fees. And so we’re going to bring him in to kind of deep dive one of those deals. And coincidentally he’s going to take us right back to the beginning.
So I know there’s a lot of listeners that are listening right now thinking, how do I get my first deal? How do I make sure I’m doing it the right way and not have so many mistakes happen to me. This podcast will connect with you. He will share with you some of the mistakes he went through, some of the things he’s learned from it. He loves this first deal, cause guys, all it takes is one. If you can get one deal, it’ll start to snowball into multiple. So Jeremy, my man, without further ado, how the heck are you?

Jeremy Beland: Awesome Cody, thank you so much for having me on the podcast is a great pleasure and honor to be here. I’m a big fan of the podcast and I’m really excited to finally be on it. It’s pretty awesome. Surreal.

Cody Hofhine: I love this and I love your excitement for it. We were talking before this podcast started and I just, I love your excitement thinking, man, I remember I was just listening to the podcast and here I am on the podcast, but I want you to know this. You’re on the podcast cause you’re a rock star and we are excited to have you share your story and help connect with other individuals with Rhino Nation right now to help them overcome any doubts, any fears, and just go out there and be a rock star just like yourself. So know that it’s you, it’s not us, it’s you, that you’re on this podcast today. You’ve done a lot of great things and so let’s share that story today.

Jeremy Beland: Well, I appreciate that. Yeah. You know, my first deal is the one I want to talk about and

Cody Hofhine: Well, before we even get to that, tell me this, let’s kind of give a breakdown. Let them know, maybe help us out, know your background, where did you come from? What does it, how does it come to now you’re a wholesaler? What is your family life, all that fun stuff?

Jeremy Beland: Yeah. So I’m 40 years old. I have two kids, I am divorced, I’ve been divorced a few years, but my kids are getting older and I’m getting older. I’ve been in the professional arena for a long time with a sales jobs, and I do pretty well for myself. I have done pretty well for myself.
Outside of one hiccup in life where during the recession era when everybody was looking for work. But we all recovered from that time. But as I get older and I see more and more people becoming unstable with their future in those days of just getting a job, and working towards retirement are basically dead. And I just had a another friend recently, at fifty years old, let go from a company and now he’s looking for work. And that’s a deep fear for me. And my longterm strategy with the wholesaling business is obviously to have it automated. So, I can go like Tom to Fiji and sit in the business still brings in money. But, I want it to lead to passive income as well with buy and hold properties. You know what Clayton Morris does in the freedom numbers and all that. That’s really my longterm goal as long as well as I’m running this business.

Cody Hofhine: Tell me this, cause you said something very interesting. In fact, it made me really think about what you just said cause you said something beyond interesting that no one’s probably ever said to me on a podcast before and that is you had this fear, because here’s the thing, a lot of times there’s more fear getting into something new. There’s this fear of getting into wholesaling and, Oh can I do it? Is it going to cost me a lot of money? Is it going to do this, is it going to do that? But I love that you shared the other side of the coin and it was the fear of still working for Corporate America and knowing that they can pull that rug from out from under you at any given time. Like there’s nothing guaranteed about Corporate America. So I love that you shared the other side of the coin. Like you had more of a fear of I don’t want to work for someone that can pull the plug at any time. I want to create my own life. So that’s beyond interesting to me that you pulled that side out.

Jeremy Beland: Yeah. It’s really scary. Back in 2009, I had a really good job and the owner of the company unexpectedly passed away. And what happened at that time is they decided, the siblings, the wife and the children of the company, cause there was a large, huge family owned business, I mean a hundred million dollar business, decided to sell it. Within that, they sold it and within a year everybody was basically out looking for work. And that time is when the market crash was, the bubble with the houses and everything, and I ended up losing $150,000 equity in my house in one year. I was out of a job, couldn’t afford it, couldn’t get it refinanced. I couldn’t get any help from the government at that time, cause they really weren’t doing anything with the loan modifications or anything at that point. I ended up having a short sale, and then I joined the military, because I had to pay the bills and it was my only option at the time.
So I joined the Air Force and we made it through. And then a couple of years goes by, I get myself another sales job and things start picking up. It’s all in the past now, but what that experience taught me was it’s here today and it’s gone tomorrow and I hate, depending my future and my children’s future, on something that’s out of my control. The company I worked for today, the owner just says, Hey, I’m making a good living I’m going to cash out and it’s all over. And then, the older I get, the harder it is to find work and Corporate America, somebody else much younger at a much cheaper price that can afford a cheaper cost of living is much more attractive than an older guy like myself. So, I just want to take matters into my own hands and that’s really what’s driving me and my passion for the wholesaling.

Cody Hofhine: I love it. I love it. So Jeremy, let’s go right to the meat, potatoes, what everyone is waiting for and getting to their notepads and pens out to start scribbling away. Let’s give some gold nuggets, and let’s go back to square one. Your first deal. Let’s talk about what you did like mailers, are we talking [inaudible 00:07:10] ? Like let’s talk about the form of marketing, what you used and then how long after before the phone started ringing. And let’s kind of go granular on this.

Jeremy Beland: Okay, yeah, absolutely. So, this particular property came off of absentee owner list of absentee owner equity list,

Cody Hofhine: So, to kind of explain, Rhino Nation, absentee owner. These are people that are not living in the home but they own the home. So absentee owner and people that have equity in the home. Okay, go for it, my man.

Jeremy Beland: Yes. So, I got a big list and I sent it out and is taking massive action and I was all excited and realize that, Oh man, I just sent out a huge mail order with the wrong phone number and I cannot get that phone number.

Cody Hofhine: You know, you’re mimicking Tom’s, you realize this, right? Tom did this, his first mailing, the exact same thing. Totally messed up and wasted like two grand his first mailing.

Jeremy Beland: Yeah, yeah, it was a painful thing to learn, but hey, it happens.

Cody Hofhine: Ah, but did that get you kicked off the horse for good? No!

Jeremy Beland: Of course not, of course not. That was one of many, many, gods, many mistakes and I still make them every day, but I’m learning and it’s fine. So after that I put the right number, resent out the mailing, people said, wow, this is the second mailing I got, and I tried calling you a bunch of times, but I didn’t get anything. It was because there was no phone number. But I sent out a handwritten white postcard. Works very, very well for responses. I’ve tried a few other things, but the white handwritten postcard was very successful. So they called back and they would tell me that they’re looking to sell the house. And the reason why was because originally they bought the house for their son to live in. They started to fix it up and the son decided to move away and they were kind of just stuck with this house that they didn’t need and they were just kind of shopping it around.
So I went out and met with them, and it turned out that it was a little bit more in depth of that, basically they were really hot on a number and I ended up putting the deal under contract as soon as I went out there, for way too high, which was another lesson I learned on this property, one of many. Went out to start marketing it to my cash buyers, and nothing. Crickets. And half the problem for that was because I didn’t have enough cash buyers. One thing I didn’t do early on is I didn’t have enough cash buyers

Cody Hofhine: You skipped through one of the most, probably the beginning of the whole course.

Jeremy Beland: Yeah. I did it but not as much as I should have. I just, I didn’t put as much emphasis. Cause I think, when you get started, you get so excited and making the first deal you don’t think about the back end. Now, I guess my philosophy has changed on that a little bit. My emphasis is more on building my cash buyers network, which I’ve done quite a bit since then. You know at that time it had probably 35 now I’m up to 150 and that’s probably just two months.

Cody Hofhine: Hey, hold it right there real quick. So Rhino Nation, there is a gold nugget worth jotting down and jotting down and circling and circling and circling, is build that cash buyers list. If you heard right from the get go, he puts a home under contract. It’s a deal, right? The issue is this, if you don’t have cash buyers, it doesn’t matter if it’s a deal, it doesn’t matter how great the deal is. You have to have the end game in mind. Right? And so don’t make the mistake, this is amazing gold nuggets already out of the gates of something not to do. And that’s to go through this without a cash buyers list and he’s going to share how now having 150 kind of changes that whole entire thing.

Jeremy Beland: Oh, it changes it completely. Now when I put out a property, I have 25 people wanting to see it right away, whereas before I couldn’t even get one to show up. Matter of fact, I set up the inspection with this property, and I went out there, and nobody showed up and I was so embarrassed. I’m like, Oh my goodness, nobody’s showing up. I swear, three people said they were coming, so we wasted two hours. But, it turns out that the property was too high. I had it overvalued. I was a little eager to put it under contract, and the reality was something that I’ve learned now, which is really a gold nugget that I’ve learned from you, Cody specifically, is question number four, and really understanding why they want to move this property. And as we spent that time in the inspection, really talking, I really got to the understanding of what was going on with them.
And basically, the husband and wife own it and they were an older couple and the wife was born and raised in Russia. Now she’s lived in America for a long, long time, but she was born around Chernobyl, and she was affected by Chernobyl back in, I don’t know the eighties or whatever when that happened, and she’s been fighting cancer on and off her whole life.
And she got cancer again. And her and her husband would occasionally fix it, she would fix and flip these houses on her own occasionally. And then like I said, they were planning on giving this to their son, then moved away. But then she became ill again and then her husband taught tractor trailer drivers all across the country, so he was always on the road and he didn’t want her working and getting sicker to do this. Then it turned out to be even deeper that they were needed the money because they needed to do an experimental therapy in Chicago, because you know the other radiation techniques that they used wasn’t working, and their insurance wouldn’t cover it. So they basically needed to sell this house so she could go get the treatment she needed in Chicago, which fortunately was the end result, which you know, turned out to be a blessing for everybody.

Cody Hofhine: Jeremy, what you just said, there is yet another probably worthwhile to her and tell Rhino Nation about. Listeners, listen to this. The whole thing is how crucial that is.
He referred to it as question number four, and I’m going to give you a gold value bomb right here. Write this down. When he says, question four it’s, man, this seems like a nice property, why are you considering selling it? Now, did you hear how important that was? Like you can tell there’s a lot of things going on in this individual’s life. This is what, as a wholesaler, you’re able to do. It really has nothing to do with real estate. It really doesn’t. It’s all to do with finding out why these individuals are selling their home. What is the why behind it? Why are you moving it? And Jeremy did a great job to slow down, go through that question and just ask why are you considering selling it? And then find out all of this stuff. Because once he finds out the why, he’s then able to find out a solution to see if he could be a solution to help them in their problems.
That’s what this business is about. It’s very little to do with real estate. It’s more to do with find out the situation and see if you can be a solution. Man, Jeremy, you nailed it. That stuff is gold.

Jeremy Beland: Yeah, Cody, it’s something on working diligently to improve on as well. I’ve been in sales a long time so it’s pretty easy for me to talk to people, but it’s not always easy for them to talk to me. And a lot of times when you talk to people, they’re like, Oh, everybody has a number, just give me your best price and blow me away with whatever offer you have. But a lot of the times they’re just, there’s a reason why they responded to the postcards. There’s a reason why they’re selling it and it’s a matter of just trying to find out what that is. Cause sometimes they’re just embarrassed to talk about it. They’re scared to talk about it. Maybe they don’t want to admit why the situation is going on and then the better I can get it figured out that’s why, the better chance I can help them and help myself in the process.

Cody Hofhine: Wow. Good, good, good. So with this individual, you said the first time you put it under contract, you put under contract at too high of a price. Your buyers didn’t want it. So what did you have to do from there to be able to make this a win win?

Jeremy Beland: Well, I was fortunate to talk to an investor who kind of helped, taught me, one of my cash buyer investors, and he was very helpful, kind of educating me a little bit. But basically I went back, I said the price was too high. We renegotiated it and then I had another inspection. A lot more people showed up, but nobody would put in an offer. And actually, and she saw how hard I was working. She knew that I was talking to her every other day. I was trying to get people to take care of this house. She knew I was wholesaling it and she said, I have somebody else that wants to buy this property, but she’s like, you’ve worked so hard for me, I want to make sure that it works for you. So we will renegotiate for a second time, and we renegotiated for that second time. We were able to put it under contract, and had it sold to a buyer at the third inspection.

Cody Hofhine: So what was that new contract, but what was the original and what was the third? What was the original contract price? Maybe the second and the third.

Jeremy Beland: So $190,000 was the original and $165,000 was the second, no sorry, $150,000 was the second we ended up going down to $140,000.

Cody Hofhine: Okay. Okay. And $140,000 now you’re able to get a little bit more, well more interest. You’re able to get cash buyers out there for an inspection period. And then from there, what ultimately were you able to assign this to a cash buyer for?

Jeremy Beland: I sold it to somebody who had planned on fixing it up and putting it out on the market, and I got it signed for $145,000

Cody Hofhine: $145,000, my man, hold on cause you know what’s coming [inaudible] All right! So we got the victory bell for Mr. Jeremy. The first deal that taught you probably the most and $5,000. That is incredible. That is a great assignment fee. And some are going to be, some could be a thousand but some could be 20 some could be 30. $5,000 is a great consistent assignment fee. And to you my man, that is absolutely awesome and because of that one, here’s what I absolutely love. It only takes one and then all sudden it starts snowballing. And since then you’ve done another three and are those closed, done, accounted for?

Jeremy Beland: Yep, all of them had been closed. I closed on my fourth one just about two weeks ago.

Cody Hofhine: Awesome. Anything in the pipeline?

Jeremy Beland: I have a five family I have right now that I’m under contract. I’m looking to get over to a cash buyer and then I’ve been working, my phone has been ringing a lot since Saturday, so I’m working on a bunch of stuff.

Cody Hofhine: That is awesome. Now your phone consistently ringing because there’s probably, there’s the good gold nugget that I want you to share. Why is your phone consistently ringing?

Jeremy Beland: Because I’m consistently sending out mailings.

Cody Hofhine: Perfect. That is exactly like whacking the nail on the head. Perfect. It’s right there. Jeremy is staying consistent. Consistent. That’s the word you need to hear over and over again. Stay consistent on your marketing. Cause if you do that, consistent marketing leads to consistent phone calls. Consistent phone calls, leads to consistent appointments. Consistent appointments, leads to consistent contracts. Consistent contracts, leads to consistent money coming in. But it all starts with what Jeremy just said. Marketing, staying consistent on marketing. And if you can do that, it’ll lead you to the final goal of that ROI. Right? Where you cash that big check.

Jeremy Beland: Absolutely. In the time that I physically put in, the manual hours that I put in, there’s no ROI back on. It was only 5,000 but I was probably spent 20 hours working on that deal with all the time spent. So it’s an amazing ROI and [crosstalk 00:19:12] yeah, and the best part about it was like you get that confirmation that it works, that, you always hear everybody, if I can do it, you can do it. And there’s always that doubt in the back of your head. But I said, I’m going to try or die trying it or fail. And I went out, and I said, I’m going to do it, and I did it and it really wasn’t as hard as I thought it was going to be. It was actually easier. What I realized is that wholesaling is much more in depth than I thought it was and if it wasn’t for a Investor Grit and the tribe, it probably wouldn’t have happened. There’s just so much more to know that I didn’t know.

Cody Hofhine: Brother, I love that, and I couldn’t agree more. I think it’s great. There’s mentors out there that can lead you down the right path, but something more importantly that you said more than just Investor Grit is the tribe. I will put our group up against any group out there in the wholesaling arena as literally the best community. I love it. Everyone’s a go giver. Everyone’s of an abundant mindset. We all help each other. We’re always rooting and cheerleading for each other. I feel like at any given time I can call anyone in the tribe, in this community, and I know if I’m having a down day, a bad day, I can count on hundreds of people that buoy me up, pick me up and put me back on my horse and, I just, I love this community because when you surround yourself with people that are better than you, surround yourself with people that are already at the destination that you want to be at, you become those people super, super quick. So the power of that community is incredible.

Jeremy Beland: I couldn’t agree with you any more. Matter of fact, on my last deal that I closed, I posted something on the Facebook page that we have, and I never got so many comments and likes and just people reaching out with congratulations on everything in my life. It was overwhelming. I was, not emotional, but I was like, wow, look at how much people are just giving this attention. I just, I couldn’t believe it. I was very humbled by everybody’s, just their attitude and, like you said, the go giving attitude and just wanting everybody to succeed. It’s the big happy family and I’m blessed to be part of it, that’s for sure.

Cody Hofhine: I love it brother. Now in closing, to kind of recap to help people understand, what keeps you motivated, what keeps your drive going? Help us understand. Give our listeners a gold nugget book that if you said, Hey, if you read this book it will help you out. And what would that book be?

Jeremy Beland: You know, it’s funny, at the end of all of these podcasts that I listened to, cause I listen to every single one dozens of times, I always write down in the notes of my phone, which book everybody recommends cause I want to make sure I get to them all. And whereas I do a lot of driving and traveling with my day job, I listen to them on audio books. And especially when I go running in the morning and there’s been a few that I like a lot. You know the Go-Giver I’m listening to right now, that’s fantastic. The Richest Man in Babylon, I liked that as well, but my favorite one, and I probably listen to it every few weeks and I listen to it when I run races and everything else is The Rhinoceros Success, it speaks to me, it speaks to me since day one. I love the book it motivates me, when I’m done with that thing I want to tackle on the world. It’s awesome.

Cody Hofhine: Sean Alexander with Rhinoceros Success. In fact, this guy, this author is incredible. He just flew out to our April event and spoke. He was our concluding speaker at that April event and it was amazing seeing him in person. That guy knows how to motivate and amp people up. I absolutely loved that book. So what a great book to recommend to everyone. Now with that being said, let’s go back again to square root one at the beginning. We have a lot of listeners that are on this podcast that are maybe brand new to it, they’ve never done a deal or they’re looking for their first deal or they’re struggling in their wholesaling business. If you could go back to square one, what would be one gold nugget that you would drop saying, if I had to do it all over again, I would do this? What would that look like?

Jeremy Beland: Well, I know one thing I would do all over again and that was to get a mentor. I can’t speak enough about how important that is to my success and I searched around for a long time and I’m really glad that I found Tom and Cody to be my mentors because this made all the difference in the world. But as far as a gold nugget as the biggest mistake I made was cash buyers, build that cash buyers list. Even if it slows you down getting your first deal for a month or two, build the cash buyers, it’s very, very important.

Cody Hofhine: I love it. I love it. Well, Jeremy, my man, thank you so much for joining us on this podcast today. I know there’s a lot of people that this is going to resonate with, that they’re going to listen to this and it’s going to be basically their own story that they’re living in right now. That you’re going to help them hopefully jump over and say that there is a brighter side. There is a better future with wholesaling.

Jeremy Beland: I hope so. They should take the jump, man. It’s the best decision I’ve made in a very long time.

Cody Hofhine: I love it. All right, my man, thank you so much. Now Rhino Nation, this has been another incredible, incredible episode. We absolutely love our students nationwide that get on this podcast. It is what makes this podcast what it is. It’s not much of what we’re saying as much as what they’re saying, sharing their stories, sharing their successes, sharing some of their defeats as well, where they’ve been knocked down and some of the struggles they go through, but all of it has a purpose.
It led them to their first deal and now multiple deals. So we’re excited that you’re able to listen today. Download this podcast. This is something you’re going to want to listen to over and over again. There were so many gold nuggets here that will help you in your wholesaling business and help you just destroy it out there and finish off this year strong. And if you personally want us to help you with your wholesaling business and help you explode your wholesaling business, get on over to Wholesaling Inc dot com that’s wholesaling inc dot com and book a call with our team and if we like what you have to say, we just might invite you to be part of the tribe. Until next time, take care everyone.

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