Posted on: December 22, 2021
WI 846 | Real Estate Investors

 

It’s as easy as 1, 2, 3! Buy a house, make a few furnishing changes, put it back on the market, and make a considerable profit. At any given time, a half-dozen shows on television feature sleek, well-dressed investors who make the process look fast, fun, and profitable. Yet, the road to real estate success isn’t all about the “sold” signs. It has to follow a specific formula to make valuable gains. Most of the time, aspiring real estate investors overlook the basics and end up failing.

We are joined today by Jason Valenzuela as he gives us an idea of how to make consistent deals in the market. He also tapped upon the common pitfalls that real investors make when closing deals and how he got into the world of radio. Listen to this episode to find out more.

Why Most Real Estate Investors Miss Out on 6-Figure Deals and How to Capitalize on Their Losses

Before we get into the episode, I want to tell you about an incredible offer we have that is running until midnight on New Year’s Eve. As some of you probably know, the moratorium on foreclosures is rapidly coming to an end and what that means is there are going to be an incredible amount of people who are going to need your help. As wholesalers, we know that it is our job to help these people out of bad situations. For many of these people, we are the only option they have.

In the coming months, there is going to be a sea of opportunities to help folks out. A wholesaler who is smartly positioned can help many people and at the same time, get paid handsomely for their work. That is why Wholesaling Inc has decided to extend our Black Friday sale for the year. I call it Black Friday in December. For the next weeks, we are offering you our biggest discount ever on all of our mentoring programs.

Starting now and through midnight on Friday, December 31st, when you join any one of our incredible wholesaling coaching programs, you will get $1,500 off the tuition costs. This is a total no-brainer. If you have been reading this episode, you know that we are the best in the business. If you follow what we teach and do the work, you are going to get results.

Whether your goal is to get your first wholesaling deal or build a thriving wholesaling business from the ground up, you are going to absolutely want to take advantage of this incredible discount on any of our coaching programs, which include Brent Daniels TTP Cold Calling Program. There’s also the Wholesaling Business Blueprint, which is Rafael Cortez’s program. There is Lauren Hardy’s Virtual Investing Mastery program.

Of course, there is Chris Arnold’s REI Radio Program, an awesome program there. Also, The Land Sharks Program by Brent Bowers teaches you how to make money with land. Our newest product entry, which is Chris Craddock’s REI Revive Program, teaches you how to monetize dead leads sitting in your database.

All you have to do to take advantage of this incredible offer is go to WholesalingInc.com, choose the program or programs that you are most interested in, and schedule a call with our team. We will hop on a short call with you to learn a little bit about you, who you are, what are your goals, what are you looking to achieve. If we believe it as a good fit, when you join one of our programs, you will receive $1,500 off the cost of tuition. There is no time like the present, so don’t wait, go there now, and schedule a call with us, you won’t regret it.

The last time we offered this much of a discount on Black Friday, we were inundated with applications. Please be patient. It might take us some time to get to you because we are going in order here. First come, first serve. One last thing, keep in mind that the sale starts now, and then midnight on Friday, New Year’s Eve. That is Friday, December 31st at midnight. You have to have scheduled your call buyer before midnight December 31st to take advantage of this massive discount.

2022 is less than two weeks away. I don’t know where you are now or if you are happy with your results for 2021 but here is your opportunity to build a lucrative real estate business and get the help that you need from some of the best coaches in the industry and save a ton of money off the tuition cost. Good luck and let’s get into the episode.

We are super glad to have you back in another episode. We always want to hop on here and provide any stories, value, tips or tricks that could benefit you guys. I’m excited because we are having a great conversation with a student of ours who wanted to hop on, share his radio journey and the things that he’s experiencing with you in terms of his wholesaling business as a whole. We have Jason on and Jason is going to be here to talk through his radio journey, in general. Thank you so much, Jason, for joining us. I’m excited to have you on the show.

The idea of financial freedom and not having a nine-to-five job is very alluring.

Thanks for having me. Appreciate it.

You and I have talked many times but the audience is a little bit newer to you. If you can explain maybe a little bit about your background, so our readers have an idea of who you are, a little snapshot of you, your business, and how long you have been in business.

We have been doing this for several years. It started in about 2015. I have always known I want to invest in real estate since I was in college. A few years after I graduated, I build a small workshop right into 2015. The first couple deals here in Houston, I reached out to my brother in South Texas, which is where I’m from, born and raised, and say, “I’m doing this here in Houston. Do you want in?” He’s like, “Yes. Let’s go ahead and do it.” We do everything from wholesale, buy and hold, fix and flip. If there’s a few made and it’s real estate related, we are going to figure.

You and your brother are business partners, and you have branched yourself from Houston to South Texas, correct?

Yes. I have moved our entire operation from Houston to South Texas. We are exclusively in South Texas. I don’t do anything in the Houston market anymore because I’m also a full-time practicing professional. It was going to be difficult to manage to do all the running around here in Houston. That’s where I’ve got my brother in my leverage. He has a little bit more time, so he’s able to do all the boots on the ground type stuff. I’m more of the finance guy. I make the offers. I make sure the numbers are good.

That’s super awesome being able to have someone else to maintain. I don’t think that people consider going into it but of course, you can do it. We have plenty of people that are a one-man team but if you can get to a point where you can bring someone else on to alleviate some of that, it can make a huge difference. You said you had always been wanting to get into real estate even while you were in college. Was there anything specifically about real estate that was drawing you towards it?

Financial freedom. The idea of passive income and not having to have a 9:00 to 5:00 that was the allure. Everybody repeats this but I read a certain book that I’m sure everybody knows that in real estate that turns on the light bulb and system about 2011, 2012. I knew that I wanted to be in rental real estate, and then also wholesale real estate. Anything real estate-related, I want to do something with. More of essentially the freedom that could provide is what drew me into the business. In 2015, I did my first three wholesales here in Houston, and then that’s when I decided that my brother will take it usually down to South Texas.

Were you guys doing to get your deals early on because you said you and your brother were wholesaling, and fix and flips. Is there any one thing that you were doing to try and generate those deals early on when you are initially jumping into the real estate?

We tried direct mail. We did a couple of deals here and there but with the time and effort it took to generate a deal, we decided we’ve got a website that started to get some traction and then had my brother go door-to-door for pre-foreclosures. That got us some traction as well. A little bit of everything, some door knocking, and the website of that, too. That’s essentially what we are doing for the first five years we are doing door knocking and relying on the website to generate leads.

WI 846 | Real Estate Investors

Real Estate Investors: Try direct mail to generate deals and establish your business. Get traffic to your website.

 

That’s common for everyone, when you are first getting started is door-knocking. It’s great because you can start to get a feel for talking to people. Get people working maybe on your delivery, your pitch, and things like that. There are a lot of people who are newer to real estate who need to take a little second to develop that a little bit.

Door-knocking can be super helpful and, of course, direct mail as a way to get your name out there and start getting some initial deal. It’s great that you were able to jump in and start getting some deals here or there. Was there a particular point in your business where you went, “I need to do something different?” What led you from direct mail into the radio program or looking into radio?

We always wanted to get consistency. Our business is balanced out by our rental portfolio. We’ve got around 40 doors under management and ownership now. That helps us with our income from our business but what I wanted to prove was that, whether my market could sustain consistently at least a couple of deals a month. With our lead generation prior to joining the radio program, we did four deals a year on the wholesale flip side. Granted those were five-figure flips. I wanted to see if I could prove or not that my market could support a consistent 1 to 2 deals a month.

Some people are doing ten deals a month in different markets but mine is a smaller market and I wanted to prove that out. I didn’t know what that’s the solution was going to be. I came across one set of podcasts that Chris was on and talked to my brother about, “This is going to be an investment we are going to make but it could potentially pay off.” This year decided to take that under the program and we have been pleased with it.

For anyone that’s reading, I wanted to learn a little bit more about what you mentioned like your rental portfolio. Is that something you have been building simultaneously as you have been building out your wholesaling business or how did that play out?

Some of those rental doors came from an actual door knocking. We have a creative strategy on that front. I want to say out of 40 doors maybe 10 of those doors are from door-knocking. Others were for leads that came in that we ended up buying and holding. Those properties instead of flipping them out, and then another twenty of those doors came from seller financing on about fourteen of those doors.

Incorrect terms it was too good to be trying to have to ask for. The seller was motivated because he told me then, “I’m done with these. Make me an offer.” I said, “Let’s do it. What’s your price?” He gave his price that works. He’s like, “Let’s do it with a low-interest rate.” I’m like, “Done. Let’s go for it.” To answer your question, yes, we built that steadily over the last years, while we have been doing the wholesale fixing.

You are looking for that balance, a little bit more consistency on the wholesaling side to balance those things out.

In 2020, I’m sure everybody might have their 2020 story but in 2020, luckily, that kept our business afloat. Not to say we were traveling because suddenly, everybody paid their rent but that smoothed out the year for us. We only did one flip for the year. In 2021 we were looking for something that was going to the amplifier or accelerator, so here we are now.

Wholesaling can give you that financial freedom that you have always dreamed of.

That’s what I wanted to get into is a better understanding of your radio journey as a whole and if you could walk us through that in terms of when you joined the program, and what that journey has looked like for you up until this point?

I want to say we decided to do it early in the year, maybe February, March. The deals and the volume have been there, we haven’t been able to figure out how to find it. We are now at 1.5 deals, almost 2 a month just from the radio. This doesn’t count. We have done some other deals from our website as well but from radio, we’ve got the biggest deal since June which we used to do for about four years and that’s already doubled our volume a little less than half a year.

For reference, because I know some of our readers are probably want to track your KPIs, your key performance indicators or at least understand the numbers a little bit better, what is the cost of that station? The one station that you are on?

The cost of it is $1,600 a month. The total cost as of the end of this month is going to be about a little under $9,000 that I spent on the radio to generate those eight deals.

With those eight deals, is there an average profit that you are seeing or what’s the biggest profit from a numbers standpoint we have an understanding of what you are seeing in your radio journey?

One loan closes, and then I have another contract on close at least per contract, and another one that’s been closed maybe a month or two but counting all eight of those average deal sizes, because there’s an anomaly in there, is a little under $21,000.

Out of the deals that closed was there a big profit anywhere? Did you see a big peak? You mentioned the anomaly there and with that anomaly has been a higher deal or?

That one was a more creative type deal. It was your typical sale. That’s what’s driving the average way up. A lot of the close ones, our highest was right around $17,000 on that deal. We have one that’s close to six figures that are going to be a longer play because it has some complexities behind the type of deal it is but eventually, the exit there’s going to be in possession of it. We already own it. I purchased it outright but I will need to get possession. Probably it will take me a little bit to get. That one is going to feel close to six figures. I wish all of them were that big but our average is right around $10,000 of close deals.

Those are some big deals. You are losing eight deals and you have been on the radio. You joined the program around April and you officially ran on the radio? What month would that have been that you officially started on the radio?

I started on June 1st.

WI 846 | Real Estate Investors

Real Estate Investors: Some of these people are already convinced when they are calling in. The call and volume are much more manageable.

 

Since June, that’s eight deals and you said that would be double of what you were doing in 2020. That’s a crazy pace to be on, especially if you are looking at almost a six-figure deal.

I’m hoping to get at least one of those deals. That would be nice.

That deal came from radio, correct? That deal that you are looking at, that’s a few months off, and probably going to be about six figures was a lead from radio?

Yes. That’s the first week or two weeks since the locked up we were going.

You are about 1 or 2 weeks into your actual airing on the radio, and you were getting calls in that lead came in?

Yes.

To be honest with you, most often competitors don’t want to touch something like that. The competition on those types of properties is low. Even if someone had interest, they usually probably tap out after a couple of weeks of follow-up when they realize that is it isn’t going to be a longer game. It’s great for your pipeline of having something high and profitable now but then you also have something that is in your pipeline that’s going to come into fruition, maybe in a few months.

It’s helping to keep it for. I forgot about another one that we did get referrals based on those. I would say to the audience, don’t shy away from something that doesn’t fit the mold. I would brainstorm a little bit, ask questions to anyone in your network. We have an available network here with the wholesaling group and ask questions there. Leverage as much as you can be based on others’ experiences because I’m almost guaranteed that somebody has seen it before and figured out how to monetize something that isn’t obvious.

What is the typical call look like for you once you get one on the radio, we will touch on the celebrity piece about hearing your actual stuff on the radio but what is it called that seems like once it calls in from a radio ad?

Don’t shy away from something that doesn’t fit the mold.

It’s pretty straightforward. First, you are going to get, “I heard your app, do you buy houses? Are you the guy that buys houses?” “Yes, that’s me. Do you have a house for sale?” When I ask that, they start giving me the backstory, which is what will give me the cue as to whether this is going to be a motivated seller. Most of the time, they turn out to be motivated sellers. They asked me, “What’s the process?” I give a little background as to how we process, and then from there, I will ask questions such as the address and your name. I have your phone number already for caller ID, bedrooms, bathrooms, and then I hit them with, “What’s your reason for selling?” That’s when they will start opening up, telling their life story or whatever the case and situation is.

From there, I determine I’ve got to go, “I have your information. Let me run my numbers real quick. I will call you back to make my offer. In throwing distance, then we will see you the next day. Call me back.” I’m going to do my thing, put the numbers, call them back, and make the offer. If they accept, we go see it. When I say accept, they are agreeable to the notion of a number that I have come up with.

They will tell me and then we go see it. They are not long-drawn-out calls. It’s pretty simple as to the point some of these people will even come out and tell you. Essentially, you don’t even have to ask what the motivation is, and come out and say, “It’s good. We will visit in two weeks.” “Can you help me before it?” “Yes. Give me your address because I’m going to start the process, make sure you can get it before it does go to foreclosure.”

Some of the more motivated calls that I get because back in the direct mail days, you get people calling, “You want to buy my house?” Yes, send yellow letters, postcards or something. “Yes, I do.” “I want $50 million.” I’m like, “It’s probably worth $150,000.” They said, “You said you want it.” I’m like, “You are not my target.” You have to sift through a bunch of those before you’ve got somebody that said, “Just come. I need to get rid of it.” Make an offer. Let’s do it. Some of these people are already convinced when they are calling in. The call and volume are much more manageable.

When you were saying about the direct mail cost you, I had flashbacks. The things that I will get. I’m almost like, “Why me?”

A little PTSD.

I have that amount of time to call you back even bother saying any of that. I had a flashback there. I always like to hear in terms of what you guys are experiencing once those actual calls come in but if you could touch on what is it like hearing yourself on the radio and even then, so what are you enjoying about radio as a whole if anything?

I hear that ad on the place because I’m a fan of the station. I listen to it before and I’m like, “I don’t sound like that.” I guess everybody thinks that I suspect. Aside from that, it’s cool. I have gotten family members to buy insurance from her, her daughter had her asked me to be on the radio. I had a couple of my tenants also say, “Are you running a radio?” I’m like, “Yes.”

You have become local famous maybe to a certain extent. It’s enjoyable. I like it. Great radio. It’s working. Now that the volume, I saw that first, there’s a rush of volume but now the volume has slowed down however the quality has not. I made an offer on three parcels of land that I might pick up and that’s one of the pending deals I bought a lot. Where we are selling, we are going to do into some of what we bought it for.

WI 846 | Real Estate Investors

Real Estate Investors: Somebody’s seen it before and figured out how to monetize something that isn’t obvious.

 

Throw it out there a little bit back. You are like, “Huh.”

Not to say that those don’t work but my experience with it has been great.

It’s great being able to work with you and see your radio journey and business as a whole. It’s exciting to experience being able to watch it from my end and watching you come in, jump in, and within 3 or 4 weeks get that first station secured and getting running on air. It’s exciting to be able to witness your radio journey with you.

I’m grateful for you to be able to hop on here, share your experience, story, and even add some value to our readers in terms of your radio portfolio and how you have been a little bit more creative in some of those deals. A lot of readers are probably going to end up running into at some particular point with all the value that you added, Jason. If someone was reading and maybe they wanted to get in contact with you or potentially work with you, would that be Facebook and if so, how would they find you?

Email is fine, Jason@TWVHouseLives.com. I’m also on Facebook, @JasonValenzuela. I don’t know how many of us but search my name, you will be able to find me. I want to say, I appreciate you giving me the time to be on here and also all the support that I received when I started. I didn’t feel like I was navigating on my own. There were weekly coaching calls where I was allowed to ask questions and all of them have been answered for me. I have been nothing but pleased with the program.

Thank you so much. Honestly, the coaching calls only work well when our students feel comfortable talking to us. We want to be as much as giving, provide as much help as possible. Thank you so much for even participating in those calls and for allowing us to pull out anything in our brain that could even be remotely helpful for you. That’s why witnessing your radio journey has been cool to see because I know how often you have been engaged in the coaching calls, and going, “Here’s what I’m experiencing. What do I do.”

Being able to see you apply those methods in real-time and then seeing them come to fruition for you has been super amazing from a coach’s standpoint. I’m excited and jumping up and down on my end of it for you with all of the things that you are experiencing out there. This is great. Thank you so much for jumping on here. If you are reading and a little bit more curious or want to find out any more interesting feed or any more information about the radio or the radio program, feel free to go to WholesalingInc.com/reiradio, if you are curious or want to find out a little bit more information.

Thank you so much, Jason, for hopping on it. Thank you, guys, so much for reading. This has been a great conversation to touch base on your journey as I said, and all the little tips and value you have been able to add on. That wraps up this episode. We will see you in the next episode.

 

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