Posted on: April 14, 2022
WI 929 | First Real Estate Deal

 

While investing in real estate does come with possible pitfalls and needs research, it can also bring a great deal of cash to your bank account. Building a million-dollar business also requires a million-dollar mindset. All investments come with pros and cons; you always need to look for potential loopholes. And have a strategy so you can earn triumph.

Today we’re pulling in Addison Walker, who has had his fair share of ups and downs since he started his real estate business. He will lay out some of the most important reasons to invest in real estate and the tricks he’s done to keep his passion for real estate burning. So strap in and let the fun begin!

The Ups And Downs Of Getting Your First Real Estate Deal From A Fresh Out Of College Wholesaler – Addison Walker

Episode Transcription

Let me open up this incredible conversation with a quote from Alex Hormozi, “Outwork your self-doubt. Your work works on you more than you work on it. There is no work that is in vain.” This is incredibly important for this conversation and in general. This is a conversation I’m going to have with an incredible young man out of Richmond, Virginia. He is fresh out of college and has that entrepreneurial brain and spirit. He doesn’t have a huge budget, but knows that he’s going to make this happen and it happened quickly with the hard work. There was a pause there before his second deal came through.

The important thing that I want you to get out of this show is this. We interview a lot of people that do 100 deals, 200 deals or 1,000 deals, whatever it is. What about how it feels after you close your first deal? When you’re going through your first deal, going through the ups and downs and the uncertainties, the inexperience that you might have getting into this industry from an outside industry? That’s what we’re going to be talking about. That’s what’s going to make this show so incredible. It is my pleasure to introduce Addison Walker to the show. Addison, say hello to everybody.

How’s it going? I’m glad I get the opportunity to come on stage here.

This is incredible. We had a great conversation recapping your journey when it started. Is that when you discovered wholesaling or have you been looking into real estate investing? What is your origin story that is going to be in the first chapter of the real estate investing book that you’re going to write? How did you get interested in real estate investing?

There are a lot of other people I’ve known about flipping. That’s the main thing I learned about in watching those HGTV Flip This House-type shows. I didn’t know anything about wholesaling until my friend had mentioned it to me in passing one time. At that point in my life, I was looking for different options other than the traditional route I was on. I started hitting YouTube University and lo and behold, Brent Daniels popped up. After that, I felt the energy and I wanted to be part of that lifestyle. I’m going through that path myself.

You went to a great school, Virginia Commonwealth. It’s a phenomenal school. What were you going to school for? Why not get a job?

Initially, when I first went, I was doing Chemistry because the market loves those STEM-type paths and jobs. I eventually switched over to Anthropology because I’ve always been interested in languages and they have a path in there called linguistic anthropology. Language is still a passion of mine. I started to get a bigger picture of what I was looking at down the road, whether it was increasing debt. The world is changing at a very rapid pace in general. To my parents and family’s displeasure, for the most part, I had to try to forge my own path and take a gamble on myself.

WI 929 | First Real Estate Deal

First Real Estate Deal: Just keep going no matter what it takes.

 

Were there any doubts creeping in? What’s going on inside your brain as you’re making this transition to essentially go out there and eat what you kill? In this business, you get paid based on results versus taking this path towards a career working for somebody else.

I put my mindset into it all-in per se. I made the decision to go into a real estate wholesaling. I didn’t look back. I didn’t see another option for me at that point. I had tried other things previously. I tried to join the military and things like that. I saw real estate and wholesaling as something that must be done. There are things in life that have to happen and you can’t take no as an answer. Failure isn’t an option at some point and this is a situation.

The fact is that in the business of finding and sourcing discount property, the key is quality conversations with distressed property owners. That’s it. If you do that, you focus on it and you make that the core function of how you generate your opportunities, you win. You can’t lose. If you have enough quality conversations, you win. It’s having the courage to be able to do that.

It’s making sure that you have enough energy in your day to be able to do that. It’s for people doing this on the side and moving the scales over where their time, efforts, and energy go. They’re tired of putting it in to make somebody else rich and be somebody else’s return on investment and start being their own.

There’s a lot to it. You get rid of everything that is unnecessary and stay focused on what is income-producing. That is being proactive and having those quality conversations. That is what you’ve been able to do. What did you do to get your first deal? It’s interesting and I love the way that you did it. I want to deep dive and get some more information here. How did you find your first deal?

I didn’t have the biggest budget at the time. When I decided to do wholesale, I dropped my job at that point. I was tired of spinning other people’s wheels. I made a couple of cold calls through my phone and I didn’t have the crazy list, maybe a handful of addresses. I decided to maybe try Facebook because I know they have a marketplace there. There was a for sale by the owner on there that was up. I skipped traced that address.

I called him and he said he would entertain an offer. I went over to his house over in Petersburg, probably twenty minutes from Richmond in that metro area. The property was a doozy. It was an ugly house. I had my little contract with me in my folder. Maybe bring a contract to the appointment because you never know what’s going to happen.

Language is still a passion.

We agreed on the price and whatnot. It’s funny when I look back because I had him sign the assignment of the contract as opposed to the purchase and sale. That’s how backward and how new I was. I had to let him know that he had signed the wrong contract. I had to go back over there again to switch it around, but I ended up getting it in the end with them.

You’re failing forward. I can’t tell you how many times I screwed it up in the beginning. Almost every single person has had this type of experience going on where they are not getting the right thing filled out, having to go back and not doing any assignment when a deal was coming in. There are a lot of different things but you kept pushing. You went there with confidence that you could get it done. The seller didn’t have a problem with it.

A lot of people are fearful that they’re going to screw it up and look stupid, but that’s the whole way we learn. That’s the whole thing. It is not education plus action equals results. It’s the action plus results in our education. That’s how we learn these things. Now you know the contract to go and present in front of your property owners. You got this deal locked up. It was probably smooth sailing after that. You opened up the escrow, everything went perfect and you made a bunch of money.

That was probably the exact opposite. I was calling around, contacting realtors in the area and I had one show up with her contract and she was going to be a potential buyer, but she didn’t like it because it needed too much work. My spiel to her was, “It’s going to need $20,000 worth of repairs. It probably needed three times that or something like that.” That was a big learning curve for me as far as repair values go in communicating with cash buyers.

I eventually found a buyer in that area who was looking to take it down. I wasn’t able to meet him. He went over to the property and said that he wanted to take it. I assigned it to him and I figured we’d use his title company. The title company couldn’t have been any worse. They didn’t reach out to me and they were taking forever with the process.

I go to the title company’s office and I’m like, “I had this project with this person.” He was envious of the fact of wholesaling in general. He didn’t like the fact that I was going to make $10,000, “for doing nothing,” he said. I was like, “To heck with this guy’s thoughts.” I called my buyer. He said he would work on it and get some impetus behind it. At this time, I’m staying in a hotel because I moved out of my apartment. I didn’t have anywhere to go at this time. I’m staying in a pretty rough hotel. There were roaches in my room. I got to deal with that.

It’s a sketchy hotel with all types of characters coming in. I heard some gunshots one night when I was sleeping. I was thinking to myself, “This is something I’m going to have to sacrifice for and hold on. I’m going to have to push through this.” I get to the closing table. By this time, I had switched to a different title company that was going to work with me. The day before closing, my buyer texted me. He says, “Sorry, Addison, the deal’s dead.” He told me he couldn’t get financing. At this point, I remember a blinding rage boiling into me at this point.

WI 929 | First Real Estate Deal

First Real Estate Deal: There’s going to be a point that you’re going to have to persevere through some things, no matter what.

 

I was sitting in the room, on the bed and in the dark, mad. He had sent it the night before. I’m filled out with anger. That was a big moment for me. I was like, “Is this happening to me? Is life trying to shove me like this?” I told myself, “Life wants to do me like this, so I’m going to have to shove harder back. That next day, I was making a bunch of phone calls left and right to my buyers, trying to get a new buyer for this property because I have a duty to the seller to perform on this contract.

That was another thing that I was furious about was that I would look bad to the seller. I don’t want to do or pride myself on that, especially when you put a property on the contract and they have to make big decisions. I called around to my buyers. Luckily, my other buyer had a friend of his that was willing to take on the property. I had to take a little bit of a pay cut.

I had to go back and renegotiate the price a little bit with the seller, but he was understanding. It went through after that. There were tenants in there and we had to wait for them to leave as well. They had some health issues. I put the property under contract in mid-July and didn’t end up picking up my check from the title company until the beginning of October.

That’s like a 60-day close. On your first deal, you’re dealing with a title company that is salty that you’re making so much money. You’re dealing with a buyer that backs out the day before close. You’re dealing with tenants that have health issues that you have empathy for and are helping them out. You have to go in and get a price reduction on top of all of that on your very first deal.

If one of those pops up, most people crumble. If two of those could pop up, people would hide in a closet until it blows past. When all four of those pop up, people are like, “I’m never touching real estate ever again but not you. You pushed through. You did the work. You got it all the way through, got it done, and paid on that deal. How much did you get paid?

I got paid $3,500 for that one. Once I was getting paid, I wasn’t concerned about how much I was getting. It was more so trying to get the seller through this process and freeing up my headspace. During this whole time, I’m like, “What if this buyer leaves and all other stuff could have gone wrong?” I was glad that one was finally able to go through.

People might be reading this and learn people talk about $100,000 deals and $70,000 deals. That $3,500 proof of concept that you earned from pushing through all of those obstacles that’s a $1 million mindset. That’s a, “I can do anything. I’m going to push this,” which you are. You already have one pending that’s going to close. That’s going to make $15,000. It’s going to keep going up from there. You got an appointment. You’re going on more. You’re building the momentum.

It’s important that you do what you want to do in your heart, and you’re going to have to forge your own path.

Going through all of that, staying in the saddle, doing what’s best, most importantly, for the seller and making sure that they get out of this situation. That’s our job. That’s what we do. We’re making sure that the buyer is happy on the other side. It’s incredible to go through those obstacles and keep the optimism, the positivity, the work flowing, keep pushing and not going, “I’m done with this thing. I’m going to wash my hands of it. Everybody else can do this business. I’m going to go over here and I’m going to be an anthropologist. I’m going to go over there. I’m going to do this.”

I can tell that you’re an anthropologist because, for the first time in probably 300 interviews that I’ve done on here, you said realtor, not realator. There’s no such thing as realator. It’s realtor. Even realtors call it realator, which is wild. I love that you pronounced it perfectly. The fact is you found your first deal in 2 to 3 weeks. It’s not like you had a tremendous runway of experience to be able to fall back on when all this was happening.

You went out there and you trusted your instincts. You trusted that you could get this done. You trusted that you were going to do what’s in the best interest of that property owner and you won the $3,500. More importantly, you went from faith to fact. Now you know it’s a fact that you can make money in this business. You know, out of thin air, using your phone, voice, talent, attention, and consistency, you can go out there and find more opportunities. How does it feel?

It feels great. When I was waiting for it, I made a little mistake. I let my marketing slip a little bit because I was dealing with that whole ordeal. I felt that I couldn’t keep up, but that’s something I learned to always keep that marketing going and snowball it. The following December, months later, I found a property owner who was looking to sell and got the property under contract. It was a good deal. I put it under contract for $4,700 and then assigned it for $85,000. I was slated to make $37,000 on it.

I was like, “This is going to be the moment where I can get clear.” My family or everyone else who was trying to steer me in a different direction. I sent it to my title company and then they responded to me probably a couple of days later. They told me that the seller is already under contract. They had already signed a prior agreement. The seller hadn’t notified me about it. That one almost crushed me. I was getting to a point where I was running out of funds, marketing, whether it was to leave this and that, stuff like that. I was getting to a point where that would have saved me and gotten me out of that situation. That one falls through and it hit me in the gut. It was a gut punch

The worst part about that Addison is that it starts that weird little nagging in the back of your brain that says, “Can I do these bigger deals? Is it possible for me to finally get over the hump? Am I going to finally get there? Am I going to keep getting pushed back? Are big deals real? Can I find them? Am I doing this right? Does it only happen to certain people that have certain luck?”

We have all of these weird hallucinations that we think about and internal battles that we have to deal with. We have to silence them so that we can keep taking action to find other opportunities. That one almost crushed you because that was the one big deal that you had locked up. If you had 10 or 12 properties under contract, the one that you lose wouldn’t be as bad. It’s holding up the pipeline, right?

WI 929 | First Real Estate Deal

First Real Estate Deal: There’s going to be a point where you have to break through a certain barrier. So it’s just whether you’re going to ascend or you’re going to avert.

 

Yes. What struck me was that if I had closed a big one like that maybe a month or two before, that would be water under the bridge. The stakes are much higher at this point where that means a lot. That was like $200,000 to me in that scenario. That’s what hit me. A split second after that, I was like, “Is this for me? Should I start applying for other jobs?” I sat and thought to myself, “I put too much time into this. I’ve given too much up to stop. I don’t think I would ever be able to live with myself had I stopped and thought of what could have been if I had kept going. That’s what helped me rally and get back on the phone.

What’s the big vision here, Addison? Once you’ve mastered this and built a team and scaled it, what are you going to do with your funds?

I have a passion for learning languages. I want to maybe travel the world to go to some immersion schools where you go to a school and they speak that certain language, so you can learn it faster and you have no choice other than to learn that language there. Maybe I’ll try to do those for a few months here and there when I’m away for business. Other than that, I picture myself trying to start a real estate hedge fund or fund something along those lines to where you syndicate to buy properties, give investors a certain return on their money and things along those lines.

Give some inspiration or to everybody that’s getting started. What do you think they should do first? What do you think they should avoid?

The instruction I would give people who are maybe starting out is to fail forward. Start taking action as soon as you can. There are ugly houses around you. You can go walk up and knock on their doors. You don’t need a dialer per se. There are different ways of getting deals. Being patient and staying consistent with it is one of the biggest things as well.

From the more mental side of things, people come from different backgrounds. Your family may not be as supportive of you when you go into real estate or try to become an entrepreneur, but you can’t blame them because that may not be what they know. They may know blue-collar, working a 9:00 to 5:00. That’s something that you can’t pay attention to. You have to understand that they’re coming from a place of love. They want you to be stable and secure.

At the same time, I feel that it’s important that you do what you want to do in your heart and you’re going to have to forge your own path. When you do something that you want to do, you got to take everything that comes with it. A lot of people say that they want this or that, but you have to be willing to do anything for it. Once you commit to something, you got to stick to it. Nothing comes easy.

Once you commit to something, you need to stick to it. Nothing comes easy.

There’s going to be a point that you’re going to have to persevere through some things. To ascend to a higher level, there’s going to be a point where you got to break through a certain barrier. It’s going to come down to whether you’re going to ascend or you’re going to avert. That’s one thing I learned from this book called Motivation Manifesto. You can either ascend to the higher level or you can avert, run away, and fold.

If they want to reach out, say hello, and squad up with you in the Richmond, Virginia area, how do people get ahold of you?

I’ll give you all my email and my Instagram. My email is WalkerHoldingsREI@Gmail.com. My Instagram is @Addison___w. That’s how you can reach out to me on Instagram. I have my real estate account in my bio too. You all can give that a follow as well to keep up with my deals and what I’m doing. It’s going to be a good ride.

It’s going to be a fantastic ride, especially after going through all of those challenges and hurdles on the first deal. You’re still pushing through and getting bigger deals. You owe me a $50,000-plus deal. You’ve got to go out and find me a big, massive deal.

I’m going to get you that. I’m going to go for $60,000.

I’m going to hold you to it. This is going to be online. This is going to be evidence forever, to the end of eternity.

It will be a good story.

Congratulations, Addison. You are doing some amazing things and becoming an amazing professional. Keep pushing and doing your thing. I love the story that you had. You gave a lot of inspiration. Anybody that is in the Virginia area or surrounding area, make sure that you reach out, connect and squad up. Thank you, Addison, for being on here.

If you guys are interested in joining the most proactive group and real estate investing, it is the TTP coaching program. Go to WholesalingInc.com/ttp. Check out what it’s all about. Check out all the testimonials and all the incredible people that are having success around the country. If it feels good in your gut, sign up for a call. I look forward to working with you personally. What an incredible story Addison had. So many challenges got through him. He got it done and proved to himself that he could do this business. He’s going to be an absolute phenom in this industry. I’m encouraging you to go out there and talk to people. Until next time, I love you. See you.

 

Important Links

 

About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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