Posted on: September 04, 2017

Ankith Chandra joined the tribe just a few months ago, but he’s already closed his first Wholesaling deal! He’s found quick success, but it didn’t come easy – he took massive action and put in a massive amount of effort, while maintaining a full-time job AND a newborn baby.

 

Ankith shares his story, and the challenges he had to overcome, so you can start Wholesaling successfully right out of the gate, too. He’s also a great example for anyone who wants to set up a business that works for them while still working a job they love or growing a family.

 

Follow Your Mentors

Ankith is an engineer by trade. He understands that, to succeed in Wholesaling, he has to take himself (and his engineer’s brain) out of the equation. He listened to his mentors, modeled the steps they laid out, and followed those steps to find success.

 

Ankith’s First Deal

  • Ankith found the property on a High Equity Absentee Owner List from ListSource.
  • He mailed the Tribe’s template postcards to 1,800 people on the list. One person who called back said she received hundreds of postcards, but she called Ankith because his postcard looked different.
  • Another potential seller called him and left a voicemail, including the price she was hoping to get ($100k).
  • Ankith went through his script and discovered she was motivated to sell the property quickly because she wanted to buy a new property closer to her new home. He told her that he can’t compete on price, but he can offer speed and convenience.
  • Ankith put the home under contract for $93k and then assigned it for $99k to make a $4,900 assignment fee (after prorated taxes)!

 

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Episode Transcription

Cody Hofhine: Welcome to another episode here on Wholesaling Inc, brought to you by Investor Grit. My name is Cody Hofhine, and I’ll be hosting today’s podcast where we are going to deep dive yet another deal to help you, Rhino Nation, go out there and take massive action so that you can do your own deals.
So today on this podcast we have Ankith Chandra. He lives in Houston, Texas, and he just got his first deal accomplished in wholesaling. He joined the tribe just a few months ago, just in March of 2017, and this guy is ready to rock and roll right out of the gates. He’s doing everything that’s asked of him and instantly has found success.
Now, it didn’t come easy. He’s put forth his massive, massive effort, and he’s just rhinoed through any kind of troubles or challenges that have ever faced him, and that’s why he’s been able to do this deal that we’re going to deep dive today.
And so, without any more to say, let’s bring on Ankith. Ankith, how are you my friend?

Ankith Chandra: I’m doing great, Cody. Thank you so much for having me on the podcast.

Cody Hofhine: Oh, you are so very welcome. And we are excited to have you on the podcast because you will now be able to share your story of really how you did this, and it’s going to help other people out there. It’ll connect with them and help them hopefully get one step closer to their first deal. So tell us maybe a little bit about you and your background.

Ankith Chandra: Sure. So my name is Ankith, as Cody mentioned, and I’m from the Houston, Texas market. I have a full-time job as an engineer, and I’ve just been interested in real estate for quite some time right now. And I’ve been listening to a lot of podcasts, watching a lot of videos, but then decided to take massive action this year and join the tribe. And since then, I’ve done my first deal.

Cody Hofhine: I love it. So here you are an engineer, and typically, to all the engineers that are listening to this, they’ll probably laugh when I say this, but a lot of times engineers come into this over-analyzing. They get into that analysis paralysis, they get analytical, and they have to think about everything. What has made it so that you’ve been able to not be so analytical and just take massive action?

Ankith Chandra: [inaudible 00:03:26] whatever you just described about engineers is very true. And I am an engineer, so my job is to analyze a lot of data, look at a lot of stuff, make sure that my decision is well thought off. But in this case, I knew that if I went through that approach, I would probably not be where I am today. So I decided to take myself out of the equation and just follow the steps, which I tried, just follow whatever my mentors are telling me. And that helped me get to where I am today.

Cody Hofhine: I love it. So let’s go right to it. Let’s deep dive this most recent deal, your first deal that you did wholesaling, and let’s go there. So if you can start right from the beginning, what list did you get this from and then did you mail it? Did you call it? What did it look like for marketing?

Ankith Chandra: So to start with, I got my list from the list source and since I’m an engineer [inaudible 00:04:22] good with [inaudible 00:04:23] sorting it on Excel. But I do have a VA right now, but I’m training her on how to do this. I did this by myself, and I sent out a mail. It was a regular white postcard provided by the tribe. And this list was the High Equity absentee owner list.

Cody Hofhine: Okay. So you pulled the list from that company called listsource.com. It’s the absentee owner, High Equity. And then you sent out just our typical, secret source, white postcard from the tribe and you sent that out. And then how many mail pieces did you send out?

Ankith Chandra: You know, I’d like to mention one thing: when this seller called me, she’s like, “Hey, I’ve been receiving a lot of mail. I’m not sure if my property is in a hard zip code, but I’ve been receiving hundreds of mails and I’m like, “So, why did you call me?” She’s like, “Your card looked different to me, so I thought I’ll just give you a call and see what you have to offer.” So it was really good that she picked the card, which was given to me by the tribe.

Speaker 1: So I love this, because this is sometimes the story that we don’t get to hear all the time. So I love the fact that you shared here this lady got hundreds of postcards, but yet she’d called your postcard because it looked different than everyone else, which is something to write down Rhino Nation. Make your postcard different. Don’t look like everyone else.

Ankith Chandra: True. So I sent about 1800 mail for this list. And I think my response rate was almost about 0.57% I would say. And this seller, she just left me a voicemail, “Hey, I have this property at such and such address and this is what I’m looking to get for it.” So she had named her price already and the voicemail.

Speaker 1: Holy smokes. So not only did she call, she left a voicemail saying, “I am interested and here’s my price.” Now, when she said that price and you did your evaluation on the property, was it already a deal listening to that number?

Ankith Chandra: It was just slightly more than what I would be willing to offer. But yes, she was in a good ballpark as to where I would consider this deal to be a good one.

Speaker 1: Okay. When that voicemail came in, you said you sent out 1800, multiple phone calls came in. Now deep diving this one: what was the price that she originally told you right there on that voicemail?

Ankith Chandra: So she left me a voicemail and she’s like, “Hey, I need $100,000 for my property. If you’re not looking to give me $100,000 don’t get back in touch with me.” And I’m like, “Okay, this person is pretty fixed up on the price.” So, I know in the tribe they say, Hey, call everybody back-”

Speaker 1: No lead left behind.

Ankith Chandra: So I did call her back and then… exactly, exactly. So, to be honest with you, she was a very friendly on the phone and then I was here to build a good rapport with her, and then she started discussing about life in general and about how to stay fit. And she was a registered nurse, and she lived in Dallas and she hadn’t seen the property for about a year or so.
So, we build a good rapport and then we started discussing about the property, and this property was occupied by tenants and it was being managed by a property manager, and the property was in great, great condition. It needed no repairs at all.

Speaker 1: Oh wow. So you came across someone that just wanted to sell this property. What was the after repair value, the ARV? As is I guess, what was it worth as is?

Ankith Chandra: The ARV on this was about 135 I would say.

Speaker 1: 135? Okay. And so instantly she was willing to sell at $35,000 discount. Was there anything that made it sound motivated? Like when you were talking with her, did anything sound like why she was wanting to sell it $35,000 off?

Ankith Chandra: Yes. So you know, I went through the script which we have in the tribe, and I did find out what was the motivation behind this, and her motivation was that she needed to liquidate this property to buy another one in Dallas. That’s where she wanted to move to. So I did ask her, “Hey, why don’t you list it with a realtor?” And she was like, “Hey, I’m not interested in that, because I just need to sell this quickly.” So I did mention to her, “Hey, I will never win with you on price, but speed and convenience is what I can offer as a part of this transaction.” And yeah, so that was the motivation behind her selling the property.

Speaker 1: Ankith, you said something that’s so key right here, and I want to maybe stop for one second, because you said a gold nugget, like a huge gold nugget right there. And I want all of our listeners to jot this down. There’s three things to do real estate, right? You got speed, you got convenience and you’ve got price. There’s those three options. You can’t have all three. You can have two of them to make things work. And so I love that you pointed this out like, “Hey, I may not be your best price but I can give you speed and I can give you convenience.” And the best part about this, Ankith, that you did is there are people out there that are willing to give up a little bit of price for speed and convenience. They’re going to understand that they can’t have all three. But to her money wasn’t the important thing. What was important to her was speed and convenience. And Jo supplied that to her and that was awesome. That’s well done.

Ankith Chandra: No, just describing the convenience aspect of it, this lady never came down to Houston to show me the property and I actually got in touch with the title company, which [also had 00:10:23] a location in Dallas. So, all she had to do was just sign the documents at Dallas and then that’s it. She would have sold the property, and with all the conveniences provided to her. So, she got the speed, she got the convenience and-

Speaker 1: Okay, so were you able to at least look at the property or anything like that or was this all done over the phone?

Ankith Chandra: So, here’s the thing. I looked at the property online, right. And based on what she had described to me that the property condition was pretty good there, it did not require any repair. We were able to negotiate a price, which I felt like was a good deal. And I had her sign the purchase agreement via DocuSign, right. So I did not look at the property when I had the purchase agreement with me. Now it may have been a mistake, but thankfully I was lucky that the property turned out to be actually there.

Speaker 1: Uh huh, and it ended up being in great shape. So what did you end up putting the home under contract for?

Ankith Chandra: So we went back and forth on this one, Cody. So I was able to put this under contract for $93,000

Speaker 1: $93,000, okay. And this was something you went back and forth on. You put the home under contract 93,000, you sent it via DocuSign because she lived now in Dallas.

Ankith Chandra: Yes.

Speaker 1: Okay. And then from there, what was exit strategy? How were you able to move this property?

Ankith Chandra: So this is a funny thing which happened. So the day I got my purchase agreement from her, this property was about 40, 45 minutes away from me. So after work I thought, “Hey, let me just go take a look at this property.” So when I went down there, I saw excellent condition. The landscaping was great, the driveway was neat and clean, and I started getting second thoughts because it was really in an unbelievable condition and the rent for this house was pretty good. And I was able to buy this for $93,000, which is more than 1% rent to value ratio. And that is considered pretty good for Houston market.

Speaker 1: Really good. What was it renting for?

Ankith Chandra: So the property was rented for 1250 a month. So we had about eight months remaining in the lease.

Speaker 1: Okay. And then you put this under contract but that is, that’s an amazing spread. He talked about like a 1% return, meaning if you buy it for $93,000 you want rents to be at least $930. And so this was well over that, which is super awesome. That’s great return. And then from there, what did you do to actually move the property?

Ankith Chandra: Tom and you, you say that, “Hey, you know, just stick to the process.” So I thought, Hey, you know what, let me not just follow the shiny object syndrome, let me just assign this contract to another investor, right? So I got the property under contract and then I sent it out to my cash buyers, and instantly I had lot of people interested in the property because it was a pretty good deal. So I decided to assign it and I sent it out to my cash buyers.

Speaker 1: Okay. At the end of the day, what were you able to assign that deal for to your cash buyer?

Ankith Chandra: So, this is the difficult part which I had with this deal to be honest with you, Cody. When I got the purchase agreement, I did not realize that the property manager was out of the country, and this seller wanted me to see the property only with herself or the property manager. Now the property manager came back after two and a half weeks and I had lost a lot of time. A lot of time. There were people calling in, emailing and saying, “Hey, when can I look at the property?” But unfortunately I could not schedule an inspection.
When the property manager came back, he was like, “Hey, I’ve got nothing to do with this property. You can talk to the tenant directly.” So I just had one week left and I remember I was on a coaching call with you and you asked me to see if the seller is willing to extend the contract. And I got in touch with her asking the same and she said okay. But when I sent her the contract, she sent that contract over real estate attorney. And it was funny that the real estate attorney then asks her, “Hey, he needs to put in a deposit money of $10,000.” And I’m like, “That’s just a lot of money for earnest money. So I just heard about, right-

Speaker 1: Right, right. Ouch. This almost sounded like it could be a deal that you’re like, “Oh no, don’t fall apart. Don’t fall apart.”

Ankith Chandra: Exactly. Exactly. I had five days and I had a lot of people interested in it and at this time I was able to convince the seller that, “Hey, let me go take a look at the property.” And I met with the tenants. I looked at the property, I got a lot of pictures, I sent it to my cash buyers again. And then there was one guy he was really interested in it and he’s like, “Hey, I will buy the property sight unseen.” And I ended up assigning this contract for a $99,000.

Speaker 1: $99,000. You had it for 93 so 99 and here we go, my math: six minus… Well no, that’s it. Is this a $6,000 assignment?

Ankith Chandra: It was supposed to be a $6,000 assignment but then some prorated taxes got kicked in and then it eventually ended up being a $4900 assignment fee.

Speaker 1: $4,900 assignment fee. But at the end of the day, my friend, that is $4,900. Hold on one second. We are going to get a victory bell for this one. Hold on.
That is awesome stuff, brother. So-

Ankith Chandra: Thank you. Thank you. Thank you so much.

Speaker 1: Even though this could have been 6,000, the best part about this, this is still a $4,900 payday. And maybe to put it in perspective, because I know with the analytical side, this is the one side I do love about engineers and analytics is, how many hours you could probably tell me to the minute, how many hours did you spend on this deal if you had to put a timeframe on it?

Ankith Chandra: I think if I had to put a timeframe on it, to be honest with you, it would be anywhere between nine to 10 hours.

Speaker 1: Nine to 10 hours. So 4,900 divided by ten: $490 an hour. Who would not, Rhino Nation, who would not like to be paid at least $490 an hour? That is absolutely awesome. That is a great payday. That’s a great pay per hour, if you look at it that way and ultimately this is going to be the first of many wholesale deals that you’re going to be doing for 2017. Would you agree?

Ankith Chandra: Yeah, this would be my first deal but I know that I have a lot more more coming because I have been meeting with a lot of sellers, a lot of appointments. I mean it is difficult with the full time job, but you know and I’m still pushing it through.

Speaker 1: Here’s what I love, Ankith, and I think this is going to resonate with a lot of the people, is the fact that you do have a full time job. You’re working a nine to five, you’re working full time as an engineer and you’re still finding time to do this on the side. And so that gives a lot of people a lot of hope that they can do this on the side. You don’t have to do it full time. You can do your nine to five, you can do this on the side. Some people choose to continue doing it on the side and then some people just do it on the side long enough until they have enough money stored up that they can do it full time. And so what is your option look like in the future? Are you looking to do this full time or always do this on the side?

Ankith Chandra: I think the systems which are taught in the tribe, I can set up a completely automated system and have my entire team do this process. So that’s my vision for the future. And I do really like my job and I want to continue doing my job [inaudible 00:18:53] I get bored out of it. But right now I plan on working on my job and also doing this part-time.

Speaker 1: That’s awesome, and that is the truth about it. This is something you can automate, scale up, put processes in place, so that you can choose to do your electrical engineer job full time and then have a full on business running by itself. That’s one thing I’ve always loved about wholesaling, the fact that you can scale up and automate super quick.

Ankith Chandra: For everybody out there, this certainly can be done even when you have a full time job. And in my case I just became a dad and I have a two month old right now. So while all of this was happening, I had a newborn at home, and we had to take care of him and I’m sure pretty much every [inaudible 00:19:35] dad knows how much work that is.

Speaker 1: Oh my goodness. My man, this has like proven to be that much better of a podcast. All the good gold nuggets are coming out at the end as well. So not only full time but you’re also a full time dad with a brand new baby, two months old, and you were able to rhino through and get this to happen and work for you. So that is awesome stuff. Ankith, congratulations. I love it. What’s a golden nugget you could give our listeners that if you had to start all over again, what would you tell them to make sure they did?

Ankith Chandra: There are a few, Cody. You told me a few key points and I wrote them down and I remember them till date. One of the first things you asked me to do was stop listening to a lot of podcasts, right? I was listening to a lot of podcasts and I was just getting a lot of education, and like Tom says, “Hey, education is like cancer.” So from that day onwards, I stopped listening to all of the podcasts, and I just focused on what actions I needed to take. So that’s my first pointer.
And the second thing you mentioned was doubt your doubts. Now everybody who gets into this has a lot of doubts, but I would just say that I doubt those doubts. This can be done, it’s just going to take some time. But it’s just a matter of perseverance and grit. But you know, success will come to you, just make sure you keep pushing it through.

Speaker 1: That is awesome awesome, awesome gold nuggets right there. Doubt your doubts. Don’t doubt yourself. Don’t doubt your territory. Don’t doubt wholesaling. Doubt your doubts if you’re going to doubt anything. I love that. With that being said, is there any key books that you read that help you stay motivated and pumped up?

Ankith Chandra: Read pretty much all the books which are recommended in the tribe. One of the first books I read was The Four Spiritual Laws of Prosperity. But the two key which have been a game changer for me are a first one, the Psycho-Cybernetics by Dr. Maltz, which was recommended by Tom, and the other book, which I think you had recommended was Go For No. These two books have been game changers in my life, Cody.

Speaker 1: I love it. I love it. What is it on Go For No, what did you like? What was a key pointer in that?

Ankith Chandra: The key pointer for me was failure isn’t a bad thing. Failure is how you get to success. I distinctly remember the diagram they have in the book, which is me, and then failure on the right hand side, and success on right hand side of failure. So basically, you only get to success after going through failure.

Speaker 1: I love it. So, so true man. I love it. That is awesome. Ankith, I want to thank you for sharing the gold nuggets you’ve shared on this podcast. Thank you for sharing the tips. Thank you for sharing a book and some of the strategies behind it, and most importantly of your time. I know you’re a busy man, you’re a busy dad, a busy worker, you’re a busy wholesaler, so I want to thank you for taking this time out of the day to join us and to do this podcast.

Ankith Chandra: Not a problem, Cody. I really want to thank you so much for taking the time on featuring me on this podcast. And, I do want to thank Tom, Brent and Bill who’ve… I’ve spoken to all four of you and you know you’ve [inaudible 00:22:58] a lot in this journey and I’m so honored to be a part of this tribe, so thank you. Thank you so much.

Speaker 1: Oh, you’re the man. Well Rhino Nation, you have just heard another episode on Wholesaling Inc., of where one of our students has just taken the bull by the horns and just run through it. So he has been a superstar. He takes massive action and there was a lot to learn from the words of Ankith, and the things that you guys can implement right now. Each and every one of you listening to this podcast, something that you can implement so that you can take massive action and see results. That is the goal of this podcast. Take massive action. Write down a golden nugget, go implement it and you’ll be one step closer to your first deal or your next deal. And that I can promise.
If you would like us to personally help you explode your wholesaling business, go over to wholesalinginc.com. That’s wholesaling-I-N-C.com, and book a call with our team and see if it’s something that we are good fit for one another. And if we like what you have to say, we just might invite you to be part of the tribe so that you can get on this podcast as well as hear the victory bell for you. Until next time, Rhino Nation, take care and we’ll talk to you soon.

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