Posted on: March 16, 2022
WI 908 | Wholetailing

 

We’re talking about big numbers today, folks! And by that, I mean $187,000 in profits and another $100,000 in the pipeline—how cool is that? Hear the story of this staggering “wholetailer” who has been in multiple stations and mastered the art of TV commercials and bring in a pile of fortune in just three months!

We will be deep-diving into the importance of patience and perseverance in closing top-notch deals and scaling up your wholesaling business. Listen as our savvy guest Cody Winter runs through his personal money-making experiences in today’s episode.

Landing The Waco Whale – 3 Months, 7 Deals, $187k In Profits, And Another $100k In The Pipeline With Cody Winter

Episode Transcription

I’m excited that you guys are with us. We got a story. I’m going to go ahead and tease it out there. We’re going to entitle this one, Landing the Waco Whale. As we get to the end, we’re going to talk about a six-figure deal. Those are always fun to talk about, but here’s the subject matter. We’ve got Cody Winters coming on. He’s a Texas guy. I’m super excited to have him. We also have Tony Javier, the master and king of TV.

Here’s what you’re going to get in this episode. Cody is an advanced guy. He has been in the game for several years on multiple stations already. Wait until you learn his profit margins after the first three months. We’re going to be throwing out some bigger numbers. I’m excited for you guys to hear about that. Welcome to the show, Tony and Cody. How are you, guys?

What’s up? It’s good to see you again.

I’m excited to be here.

Thanks. People might be like, “Who is this, Cody Winters?” He’s a Texas guy. That’s all I know about him. Tell us how long you’ve been in the game, a little bit about your business setup, and so forth.

I’m Cody Winters. Amarillo, Texas is my primary market. I started flipping houses back in 2014 and got serious about it a year or two later. I’ve been trying to grow this thing ever since.

You have an interesting model because most of the deals that you wholesale, you wholetail. It’s pretty much 95% or more. First of all, let’s define wholetailing if somebody is new. What does it mean to wholetail a deal?

First of all, I close on about everything. I’ve already closed on the deal. I clean it up. I might paint it or I might not. Sometimes, I’ll list it on the MLS. Sometimes, I’ll put it on the Facebook Marketplace and sell them that way.

Again, to divide that, we would define wholesaling as contracting a property, blasting that out to your buyers’ list, and selling the contract without ever closing on the deal. What Cody is doing is he’s coming in, taking cash, closing on these deals, and then selling them. That’s referred to as wholetaling if you’re a little bit newer to the game. Here’s my question. This is very contrarian to the way most people do it. I do have a couple of good buddies around the US that I know run this model. Give us a couple of reasons why you decide to primarily wholetail rather than traditional wholesale.

For me and in my experience, I’ve found that number one, when I’m discussing the transaction with the seller, a lot of times they want to sell it fast. If they need to close in three days, I can accommodate that, but if I’m trying to wholesale it, that’s going to be tough to do. Maybe I can or maybe I can’t. If I promise these sellers like, “I’m going to get you closed in three days. You’re going to have a huge burden off your back,” I want to be able to do that. That’s first and foremost. It’s being able to deliver to the sellers what I’m telling them I can do.

It allows you to be a promise keeper and control speed. You like that ability to maintain that type of control. I get that. What’s the second reason?

Just let the system do its job and do your job, and things will work out.

I hate having to have ten people show up at a property and go through a seller’s property when one of the reasons they sell to investors is, so they don’t have to have people traipsing through their property, looking at their family photos, or if it’s a house in disarray, they’re not embarrassed by that. It puts them at ease knowing that you’re the only one that’s going to be looking at the property and they don’t have to worry about anything else.

It creates convenience and a little bit of privacy for the seller. I get that. Sellers use the word traipsing. I don’t know why. They’re like, “I don’t want people to be traipsing through my house.” That’s their go-to word, but that’s how it feels. I don’t want anyone traipsing through my house either. You’re a seasoned guy. You closed a lot of deals. You’ve been in the game for several years. What has been your primary bread and butter that has gotten you to where you’re at so far from a marketing standpoint?

For the longest time, probably the first 4 to 5 years, it was 100% direct mail. I was sending anywhere from a little more than 20,000 postcards a month. It still works for me now. I know for a lot of places, it doesn’t. That’s my go-to marketing channel.

You were doing about 20,000 postcards per month. That’s a good solid amount. That has kept you busy, but then, you’re ready to expand. What you told me was, “My overall drive here is I don’t want to go wide or go to a bunch of other markets. Primarily, I want to go a bit deeper in my area being Texas itself.” It’s not like you’re going to go do deals out in Cali. Why TV? Is it primarily the desire to go deeper to increase your lead flow? Help us understand why you chose television because there are a ton of options out there. You could choose any channel.

First and foremost, not a lot of other people are tapping direct mail, but not everybody has the wherewithal or the capabilities to market through TV. Second of all, a lot of times, I feel like these homeowners are nervous about who’s going to show up at their front door whenever they make the call. They can put a face with the name and know who’s going to show up whenever they make that call. It puts a lot of them at ease where they might not have made that call before.

You’re seeing that fact that the TV is giving you that celebrity status or that instant credibility. I hear that it is one of the main drivers for TV and radio. People love the fact that it creates that as well. I’m going to break down some numbers here. This is where it starts to get interesting because we’re throwing some big numbers out. You’ve been advertising on television for how many months?

I’ve been in Amarillo for a little over three months.

You didn’t stop there. How many more markets have you already picked up? You’re snowballing this thing.

I jumped into Lubbock, Waco, Killeen, Temple, and Bryan-College Station, which is considered one market. It’s a giant market, but that’s the third market that I’m in.

What made you feel comfortable or what was the signal that you got that it was okay for you to go ahead? You didn’t even double down, you triple down. You went from 1 to 2 to 3. You had to see something there that gave you the confidence to start pushing the ball that fast down the field. What was it?

I knew in my heart that TV would be effective. I jumped into those other markets before Amarillo had even started. I felt that for people to see me in their homes on TV was going to be effective. I do quite a few deals in Lubbock or I have in the past. I was really comfortable with that market. I’ve got quite a few people that know the other markets that I’m in Texas. There were a few nerves there going into that many markets at once, but I had no choice but to make it work at that point.

WI 908 | Wholetailing

Wholetailing: Wholetailing puts the seller at ease, knowing that you’re the only one that’s going to be looking at the property. If their house is in disarray, they’re not embarrassed by that.

 

There’s a good quote I love. It says, “Sometimes, it’s easier to go for the home run because everyone else is so busy trying to hit a double.” Everyone is trying to hit singles and doubles. Sometimes, go for the home run because you’re probably the only one that’s got to do it. I like it. You’re swinging for the fences here. Tony, I have a question for you. Student-wise, talk to me about people moving from market to market that fast. They’re coming in and starting one and picking up two. What are you seeing as a trend in your program where people are doing multiple markets at this point and not just stopping at one?

It all depends on their model. I have many clients in Orange County. If they were to do TV in their market, it would be expensive because it’s the second biggest DMA to do TV. It would be tens of thousands of dollars. They would virtually wholesale in another market. They’ve found to plug the TV into other markets and figure out how to do deals there. A lot of our clients start with one market. If Cody didn’t start with two markets, it was very quickly after he bought the first market and bought a second one, and then eventually bought his third one. People do it differently. Some people start with one market, get it to work, and then start another.

I’ve had someone pick up as many as five markets and say, “I want to buy five markets, launch in two, and then after a few months go by, we’ll start launching the other markets,” but it’s a very plug-and-play model. If we do commercials in Amarillo to do it in Lubbock, we edit the commercial, redo the phone numbers and all of that, and then it’s all up to the client to set up their systems there and find a buyers list. I’ve got a client in Orange County. She’s doing another market, and then she is doing another market not too far from you in Texas there. Her thing was she did start her second market a little bit too fast because when she started the second market, her phone was blowing up.

You and I, Chris, did an episode a little bit ago with someone that I’m JV-ing with. We have decided that I’m going to use my team and my systems together with her to start JV-ing in that market. Clients do it differently. They start with one market and expand to others, and some swing for the fences like Cody and are like, “I can tell this as this is going to work or is already working. Let’s add some fuel to the fire in some other markets and get it going.” As long as they can get the systems and processes set up, then it’s a great way to scale your business.

It’s a rinse and repeat model. That’s what you look for. What makes something like froyo places or Chipotle so duplicable is they are such rinse and repeat models. They’re not complicated, so you can go reproduce it a thousand times. I do like that about television and radio. You can take it and reduplicate it. It’s not hard to do. Trying to do that with some of the other marketing channels out there has a lot more of a heavy lift for sure. Cody, let’s hit some numbers here. This is where this is about to get interesting. You’re running in three different markets. What’s your total monthly spend? How much are you spending?

The total monthly TV spend is a little over $11,000.

You’ve been up for three months. How many deals have you closed and been paid on? Money in the pocket.

There have been seven deals with a profit of $187,000.

How are you feeling about that?

I love it. I have to buy more markets.

That’s why you have been buying more markets. I’m looking at myself and going, “That’s an easy decision,” because now, we’re over to the numerical side of the type of return that you’re getting so far. You’re looking strong. On top of that, you have another five in the pipeline. I always like to be conservative, so I never want to overestimate. What would you say are the pending profit on those five deals conservatively?

A lot of times a seller wants to sell fast and you can only do that with wholetailing.

Those contracts should average $20,000 each. That’s another $100,000 in the pipeline with those contracts.

You had a deal of $187,000 closed within the first three months, another $100,000 in the pipeline on top of that. Those are good numbers. At the top of the hour, I mentioned that I was going to entitle this the Waco Whale. I want to transition to this story that Cody is going to tell us about the Waco market. In this story, you’re going to learn a few things.

You’re going to learn a little bit about patience because the question sometimes is, is it better to persevere versus pivot? You’re also going to learn about the fact that sometimes, the greatest part of this game is when you get that big pot. Let’s talk about the Waco Whale and the whole story of you picking up the Waco market and calling Tony. Everybody likes a great story. Break the story down for us. What happened?

I started Amarillo and Lubbock earlier. Once those commercials and these two markets came on, I was getting phone calls. I had contracts within the first couple of weeks. It’s a great volume that TV was generating in those markets. Waco took a little bit longer. I didn’t have the initial pop down there that I did with Amarillo and Lubbock. After a couple of months, I was starting to get concerned.

I had gotten a couple of contracts but they had fallen out with title issues. I didn’t have anything in the pipeline down there and I was starting to wonder, “Maybe let’s look and move into another location to see if we can generate the same type of results here.” I emailed Tony saying, “It’s not working down here. Let’s look at another market.”

Tony got the email. I’ve gotten a few of those where it’s like, “It’s not popping as fast as my other ones are. What’s going on? Should I stay in? Should I get out?” I know some of those calls.

I’m not the most patient guy either.

None of us are. We’re entrepreneurs.

I was comparing it directly to my other two markets. It’s timing. Maybe a couple of days after I spoke to Tony, I got a call from Temple, which is South of Waco. It was from a little old lady. She saw my commercial. She wanted to sell her house and wanted to speak to me. Rather than trying to do it the virtual way, I hopped on Southwest, flew down there, met with her, and was able to get the contract. She said she gets a million postcards in the mail a month, but she saw me on TV and trusted me.

Did she tell you that? That’s the power of mass media right there. What happens next?

I got the contract locked up. I knew it was a good deal right away, but then talking to some other people about dispo-ing it. We’re looking at a potentially $100,000 deal.

WI 908 | Wholetailing

Wholetailing: You have to be patient in this business. A lot of times people need time, they need you to see that you’re going to be consistent and that you’re not a flash in the pan.

 

That’s awesome. Waco was thrown out of the gate, but it came in and dropped a bomb on you. Now, you’ve got to deal under contract that you’ve got a prospective $100,000 on as well. Let me ask you this. What did you learn from that? For the people that are reading, but for you, specifically, what were maybe 1 or 2 takeaways from that whole situation?

The key for me is to be patient. With direct mail, they need you to see that you’re going to be consistent and that you’re not a flash in the pan. Sometimes, the commercials got to catch the people at the right time. They’ve got to see that you’re in it for the long haul. It works, so it’s not like there’s that much difference in the markets. For me, I was letting the system do its job. I just need to do my job and things will work out.

I agree. One thing I’ve learned working with as many investors as I have is we laugh about being impatient, but what it does is it creates bouncers. They try this out for a little bit. If it doesn’t work as fast as they want or get the results they want, they bounce to this marketing channel, and then they bounce to another marketing channel. Those are the people I talked to that complain about the fact that cold calling or direct mail doesn’t work. I’m like, “The issue is not marketing channels. The issue is the fact that you’re not persevering and writing it out,” because sometimes, things take a little bit longer.

There’s a principle that I live by when I write out all my principles, and I call it the two-two-two principle. Everything that you set out to do will probably take you two times longer, cost you twice as much, and be twice as hard as you perceived it ever to be. That tends to be the case most of the time. I did read in a book that the good thing about entrepreneurs not thinking that is that’s what gets us to go out and take a risk because if we really knew how much time it was going to take and cost us, we’d never do it in the first place. There’s the psychology of the piece that works in our favor as well.

If you’re reading, this is a great story. I’m super proud of you. You’ve done well with direct mail. You’re a consistent guy. I sense consistency. You did the direct mail thing for 4 or 5 years and still doing it. You worked it and mastered it. Now, you’ve moved onto this thing. I know you’re going to stick with it and master it. This is why you’re going to continue to blow up and be a very large and successful wholetailer.

I appreciate that.

Those are phenomenal numbers. Well done. Tony, if people are less than like, “I’m all over this. I want to see some numbers like that,” where do they start? How do they begin to learn more about your program?

We’ve got a really simple and easy way to apply and see if your market’s available. It’s RealEstateMastersTV.com/chris. Go there and apply. It’s quick and easy. Book a call with me as Cody did a couple of months ago. We’ll see if your market’s available and if you’re a good fit for the program. If so, we can get you launched on TV within about 30 to 45 days and get you rocking and rolling.

It’s that simple. Check it out. Tony and I are such believers in mass media. Television and radio have been completely overlooked. You guys know our perspective. All marketing channels work, but if you desire to do something that’s low maintenance, give you a high-quality lead, instant credibility and celebrity status, the list goes on and on, and then you got to take a look at doing mass media.

Cody, thanks so much for coming on and sharing your success. This was truly an inspirational episode. A lot of people getting off of this are getting fired up. Tony, thank you so much as well for creating a great program for everybody to see great success. To you, as an audience, as always, thank you guys for joining us. We will catch you soon when we add more value. I’ll talk to you later.

 

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About Chris Arnold

WI 908 | WholetailingChris Arnold is a 15 year Real Estate veteran who has closed over 2500 single family real estate transactions in the DFW metroplex. Chris is the founder of multiple companies that are managed by a US virtual team, which allows Chris to run his organizations while living in Tulum, Mexico full time. His passion for leaders has led to the creation of Multipliers brotherhood which serves the top 5% of real estate entrepreneurs out of the US. Most recently Chris has launched his REI Radio coaching program. This program is designed to teach real estate investors the marketing stream that everyone knows about but NO ONE is doing!

 

 

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