With the above in mind, it’s not uncommon for real estate wholesalers to garner six-figure deals. But when you’re just getting started, it takes some time and quite a bit of “trial and error” to get to a point of consistency in your business. Many newbies fall into a rut when starting out, but what’s important is that you don’t give up regardless of the obstacles and challenges you’ll face along the way. You have to strengthen your pillars and build that confidence, courage, and experience to get past that learning curve.
Our guests for today are living proof that with grit and tenacity, you’ll be able to speed up from zero to over $140,000 in just a few months. Learn how Chad and Hallie Cunningham mastered the art of real estate wholesaling in this engaging conversation.
From Zero Deals in 5 Months to Over $140,000 in 3 Months
With the above in mind, it’s not uncommon for real estate wholesalers to garner six-figure deals. But when you’re just getting started, it’s takes some time and quite a bit of “trial and error” to get to a point of consistency in your business….
Welcome to America’s number one show for new real estate investors, where we know that finding discounted properties is the most proven path to financial freedom. If I can do this business so can you. Let’s get started. Do you remember the first day you found out about wholesaling? You read Rich Dad Poor Dad and Think And Grow Rich. You started going and getting all the books that you can on real estate investing and then all of a sudden, you’re on YouTube and reading this show. You are taking it all in. You’ve got all this enthusiasm, energy, and the winds behind your back. That’s like day 1, week 1, and then you’re going.
Imagine going for 1, 2, 3, 4, or 5 months with no deals. You’re going every single day as hard as you can, Monday through Saturday, finding every nook and cranny in your schedule to commit to this business because you have a dream. It’s vivid. You see it and it’s right there in front of you. You have to get some success. You’re crying through the efforts. You’re getting frustrated. You’re wondering to yourself, “Am I a crazy person? Can I do that? Can I do this business? Can I be successful?” The conversation that I’m about to have with these incredible wholesalers out of Charlotte, North Carolina, should give you that confidence.
This is the perfect conversation, story, and testimonial of what it means to stick it out in this business, to get past that first difficulty, the learning curve, building up your courage, confidence, and all of your experience so that someday you’re going to break through. From the first day that they closed the deal after five months of not closing any deals, they’ve now closed $140,000 worth of deals in three months and have over $80,000 in equity in two deals that they decided to keep for themselves. It is the power couple coming out of Charlotte, North Carolina, Chad and Hallie Cunningham. How are you, guys?
It’s good being here. I’m vibrating with your enthusiasm. I love it.
This is a story. This is a make or break it. You guys pushed and were focused. You were out door knocking, calling, and doing everything that you could. You guys were partnered up in this endeavor. Let’s talk about that a little bit. Let me dive right into that five months and what was going through your brain. I want to go in and time travel a little bit and get your guys’ backgrounds. Talk to me about that five months of you guys sticking to it.
It started with me telling her in the car one day. We had been listening to Wholesaling Inc back in 2019. It had been a real seed planted. I kept telling her, “I wish that we had a chance together to go for it.” She said, “We’ve got $30,000 in the account.” That was supposed to be a down payment for our dream home. She called me out and was like, “You got $30,000 and I’m not stopping you.” I was like, “That’s X amount of money. That’s eight months of savings barely.” She’s like, “Take it or leave it. I’m not going to be stopping you.”
We both hopped in. When we finally did close our first deal, we only had two months of money left. I don’t know if I recommend that level of pressure that you put yourself under to quit your job and do this, especially when you’ve never closed a deal or even know how to put together a contract. I didn’t know how the contracts worked. We just did it. We’ve sucked at the prerequisites but at that point, we had already told everybody and our in-laws what we were doing. We were like, “We were all in and that was it.” It was either do or die. Being in the Marines, it’s like, you get put on a beach. You either go to the water and drown or go to the machine gun. You don’t have much of a choice. That’s what I felt needed to happen for us. Remember that it’s high-pressure running to a machine gun.
What’s the alternative?
It was intense. I was excited about the idea of having no other options and no backup plan that forces you. I like when you have no other options, you have to make it work. We literally kept failing forward. Every time, we got discouraged. We hit the gas and worked even harder. I’m so glad we did.
It came from the Wholesaling Inc family, when that hit the gut and you feel a gut check, that’s the time you hit the gas because that’s when 95% of everyone else is quitting. You keep going, even though it’s almost impossible. Everything looks impossible and it’s guaranteed not going to happen. You just keep going.
You went into this full-time and living off of savings. What are you doing all day? What are you doing to find opportunities?
Morning until night, like 6:00 in the morning and 9:00 at night, Monday through Saturday, we have to make this happen. We have two kids, a 4-year-old and a 1-year-old. We are trying to keep track of them but they’re awesome. Staring in the little blue eyes of my baby, whether they eat depends on us and she was like, “Here’s for my home. Here’s the money.” I can’t explain what kind of a drive.
I was driving for dollars. I had a goal of 1,000 properties a week and I hit it every single time. I’d pull that list and I’d say, “Go call them.” He called all day long, 6 to 7 days a week.
When you have no other options, you have to make it work.
It started out with door-knocking pre-foreclosures for the first month and a half. At the last door I knocked on, I was freaking out because I was like, “There’s no program. There’s nothing we’re following.” I’m just going to the courthouse and trying to figure stuff out. After a month and a half goes by, you’re like, “I need some guidance.” I happened to see you in Pace’s video. I looked at it and I was like, “Cool, eight things.”
I typed it on my phone, and knocked on 1 and 4 doors. I went through it with her and she was interested. We talked and I was like, “Okay.” Somehow we kept up once every couple of weeks because, after that, we joined TTP to learn follow-up and to phone. I kept in touch and that ended up being the first deal. We want to get back to door knocking because I love it. It’s all been calling.
Our driving for dollars’ lists was incredible. We got calling those lists.
I was calling as well. During the peak call times, I was knocking on doors, everything in between. Half of it was I don’t know what we were doing. You can screw up. We wasted our time with stupid stuff like, “Let me design a CRM,” and when you’re trying to get focused and figure out, “What it is we got to do to make this happen?” We’re grateful.
Hallie, what were you doing before? What’s your background? You’re like an anomaly. You’re like, “I’m not stopping you. We’ve got $30,000. Do you want to quit and bring in income? Do you want to jump into this thing full-time? No problem. We just had a baby six months ago and another baby that’s becoming 3 or 4 years old. I believe in you. Go do it.” Where does that come from? How do you know?
There are a couple of things. I’m a wife of a former police officer. That’s a dangerous thing to be in and he’s a Marine. I was used to that. I worked in the ER and saw a lot of gruesome stuff. You can’t shy away from that kind of stuff. All of those different experiences taught me, “When you get uncomfortable, you got to go forward.” I like challenges. I wouldn’t tell everyone to quit their job and do this but I do know that Chad’s a great salesman and we’ve always been a great team so I’m like, “Let’s do it.”
It didn’t feel like one in the first six months.
Neither of us did. We were a mess.
I felt like garbage and horrible.
You were Marines then a police officer and you were doing national guard or something?
No. I was in law enforcement for six years in a rough area. That helped her develop her tolerance for risk and gave the iron stomach on her side because she never complained about it. We get some calls and have some incidents, things happen. I went into the Marines. I was gone for one year then went into the reserves and continued law enforcement. We moved out here and we feel like we were ready for a change. I’m not going to get political with it but it didn’t seem like a fun job anymore. It didn’t seem like we had the ability to do the job anymore. I got to do what I can believe in and what I feel like I’m making a change in.
You jumped right into real estate and fortunately, I was able to meet you guys six weeks into your journey. You started in August and I got you guys in September. I remember in that first 90 days, we are going in the texts and the almost, “What about this?” All of a sudden, the flood gates opened. What do you think that was? Were you building up a pipeline of leads of people that weren’t necessarily ready at the time?
We were building up a pipeline but we were also building up our talent to build rapport, to learn those lists and scripts. It’s a talent you have to develop. I watched Chad stumbling on the phone in the first few months.
Anybody who heard me should be very proud of that. They’d feel better about themselves just listening to a couple of recordings. If you can do it, you got to be dumb enough to keep calling.
Sometimes I will stand outside his office and listen to him. He is so good now on the phone because he’s called for months. He could build rapport with a tomato at this point.
That’s what’s important. The missing ingredient in a lot of this is you can read books and understand the numbers behind things. You can hear stories about how people did it and understand the strategy of how they did it. When you are in the heat of it and on the field, which means on the phone with a property owner, understanding how to pre-qualify them, how to build the rapport, how to bring down their defenses so that they can effectively communicate with you what their needs are, so that you understand, “Can what I offer them actually be of service to them?” That is the key.
It takes time and reps. That’s why I always say, “Before you hire anybody or do anything in this business, talk to 1,000 property owners about their property. Ask them if they would consider an offer in their house and each rep, you’re going to get better. Don’t get discouraged. Remember that you’re getting closer to being comfortable and confident on the phone. Once you have that, that comes across as you’re having those conversations. It’s absolutely key. You can out-rapport other offers, even when other offers are higher than yours, just because people want to work with you. It’s the absolute truth.
We’ll do a deal breakdown. I want to break down the big one you closed because that gets you excited when we talk about massive deals. In the first deal, you had knocked on the door. She needed some time. She was on a pre-foreclosure. Was it right before the foreclosure hit that you were able to help her out or how did that come over?
It was pre-foreclosure a lot of times. That was back from the door knocking. It was the only person that I approached and had the eight options from your podcast with Pace. I stumbled through that and didn’t even know what half of those were, to be honest. It was the last one but then we joined your program. I kept following up and then we started building the pipeline. To go with what Hallie said, I want to emphasize that you’re growing your pipeline but at the same time, you’re growing your skills.
I don’t want to say everything against you and you are learning in the industry so it’s a painful process. You have to be a rhino. You have to have an IRS. You have to take hits in the gut. That’s when everyone else is quitting. It was that foreclosure. We had had a lot of huge hits in the guts before this, a lot of huge disappointments, and a lot of deals that we thought we were going through didn’t, especially when we were hurting and almost out of money.
If anybody is wondering what Chad is referencing. Pace Morby and myself did different options for pre-foreclosures when you talked to them. That is on Brent Daniel’s YouTube channel. Check that out. It’s one of the most popular videos.
Every time you get discouraged, just hit the gas and work even harder.
That’s what sold her, in my opinion, because we went through those points with her. It was all about not selling her house to us, which blows my mind. The scripts that you guys provide are incredible and it built that trust with us.
It was very high trust. I still use that approach. Even if people are literally at the auction because here in North Carolina, there’s a bid period where you can still go around and close the deal. I still use that and say, “I wish I would’ve talked to you six months ago,” because I wouldn’t even be buying this. That opens the door. I thought we did an accurate comp.
We’ll get into the deal breakdown on there but it’s important. Hallie hit it right on the head. When you go and approach them truly with a servant’s heart and you say, “Here’s all the other ways that I can’t help you. Here’s the one way that I can help you. It’s called the cash assets offer. Here are the ways that you can do that to keep your house and stay in your house,” because that’s what they want to do. Especially pre-foreclosure properties.
When they’re in some financial distress, they’re thinking, “I’ve got a little bit of time to catch up and I’ll work something out.” There are foreclosures every day. People lose their houses every single day. People take their time to figure that out when they realize, “I’m at the end of this thing. I’m not going to help myself. I guess this option here is the best one so I don’t just lose the house to the bank.” That’s when we step in. Sometimes we’re able to get them before that. Oftentimes, with people that are in pre-foreclosure, it’s getting down to the end of the road.
Let’s break down a deal. What deal do you want to break down?
We’ll break down the first deal that we had. It was a $93,000 deal.
Where did you find it? What was the motivation? What was the condition? What was their timeline and what was their price? Let’s start there. How did it come into your life?
It’s by door-knocking. We were falling. I was following up and I’ve learned to follow up on your program. It was the last door we had to knock on.
We pull the pre-foreclosure list so we knew it was in pre-foreclosure.
That was at the courthouse.
We subscribed to some services because it’s hard to get data for pre-foreclosures. Someone provides that service for the county we were looking in. She plotted on the map, I went and knocked on the doors. It was the last one I knocked on before we started your program. You just don’t know what’s ahead. You don’t realize what’s coming. They were in pre-foreclosure, maybe a month until the auction but then they got that extended. We’re hanging in there for dear life, in denial and doing everything. All the options I gave them, they tried and it didn’t work. They didn’t want to do it or it didn’t work. She called me. I had been following up every couple of weeks, sending text messages, putting in a call, and say, “I’d hate for you to be kicked out of the housing market for seven years, to lose and get next to nothing.” To risk that just doesn’t make a lot of sense. “Let me know if I can help.”
I stayed in front of her and then one day she called. She was crying. I almost cried because it was a rough situation in her family that had happened. We cared about them. We cared about the situation and wanted to help. I went in that night. Because of the rapport, and the trust that was built, I talked to her realtor relative who was going to list it and said, “I wanted to make sure you’re a good person and good to work with because I was going to list it. She said so much about you. I was going to let you buy it because of the rapport and trust.” I had to have that conversation first and be screened first. We talked for about 40 minutes and became friends before I got to the brass tax.
Were you scared when you walked in there and the seller has her agent/family member there?
He was on the phone in my car. I had never even been in the house but I knew about water damage and different things. I pulled some comps that I thought seemed right but it helped. I was off.
You went too low?
Lower, which made it a fatter deal but I was convinced and sold on that and was like, “This is what it is. It had comps.” It made sense because it qualified more for a house that a fund would like to buy. They were willing to pay a lot higher. It was a hedge fund deal, the first one. We haven’t done that one in that sense but the first one was that. It was in pretty good shape. They don’t like much more than $30,000 to $40,000 rehab in it. It ended up being something around there.
How did you know how to approach the hedge funds? It’s not your first deal, typically. You’re building relationships with people for a long time. They’re representing. For everybody out there reading that maybe it’s confusing. Hedge funds are big pools of money that are now going out. Since the downturn or the economic crash in 2008, hedge funds realized, “We can buy a lot of single-family properties and make it its own asset class.”
What they do is they buy up all these properties in cash. They put renters in there. They’re taking advantage of huge appreciation and depreciation on the properties. They’re getting cashflow every single month because they buy these properties in cash. They’re in certain markets. Chad found a property that fits their buy box. It checks all the criteria of what they’re looking for. He reached out to him, found him, and was able to sell it to him.
I didn’t even know that but we brought it to a realtor who went and even though we had it under contract, he tried to raise the commission on me by 3% over what he said because he saw it. We told him it was under contract, which is a lesson learned. We just didn’t know any better. He went and knocked on the door and tried stealing the deal. I caught him because of the relationship I had with the seller.
With that relationship in place, it was the same day two hours later when I said, “I’m not going to do that.” I remembered somebody at the auction that worked for a big fund that I met there. I gave him a call and it fit their buy box. We still made it happen. I didn’t even know that he was with the fund. From that point on, we said, “Thank you for doing that. We’re going to go make hedge fund connections now ourselves.” We have several because of that.
How’d you make the connections? How’d you find them?
On social media like LinkedIn. That’s one of them but we use every means possible to contact anybody and everybody saying, “Which one of you are looking for off-market deals? Can you point us to the right way?” We did that over and over and hustled. Now we have several hedge fund connections here in Charlotte as a result. It was a very violating feeling to have that happen on our first day. We haven’t had that happen since.
Grow your pipeline, but at the same time, grow your skills.
We hadn’t gotten paid. We were so excited.
That kind of stuff can happen but it doesn’t usually. We reported him. He’s having fun with that.
What did you lock it up for?
It was in the $160,000.
What’d you sell it for?
How much was wired into your account? Did you get a big fat cashier’s check? Which one did you do?
Unfortunately, we got a check because we didn’t have the wire stuff set up yet. We wanted to get the check because we were all excited to text you and say, “That’s bananas.” It takes a couple of weeks to quit. We won’t be doing that again.
How big was that check?
It’s from a door knock where you knew nothing. You didn’t know anything to say. You were literally reading it off of your phone from a YouTube video that we put out. You took the notes, read the list and she’s like, “Okay.”
We were hiding behind the door. After 5 or 10 minutes, it cracked open then the next thing you know, she’s sitting on the porch going, “Come on over here. Let’s talk.”
Now you’ve got multiple deals under your belt. You’ve got great momentum. What do you do now? What are you guys focusing on now?
As far as marketing?
Yeah. Is your daily schedule the same? Are you expanding? Are you keeping your head down? Is it just you two until you get to a certain point? What’s the game plan?
We’ve hired two cold callers because the deals were starting to come in and it was overloading us. We didn’t want the lead generation to stop. That way, he could focus on going out there and getting properties under contract. His main thing is following up and getting to those leads that day. If it’s a hot lead, he wants to be at their doorstep that day. I’ve taken the cold callers. I’m pulling lists or I taught the cold callers how to virtually drive for dollars. He is out there in the field trying to get those properties under contract.
Are you just going after driving for dollars or are you pulling other lists?
We’re pulling other lists. We’re now learning that cold callers go through a lot of records.
Six hours a day.
We’re learning about that. That’s why I have them virtually driving for dollars as well so we can get those leads coming in.
Just talking to people will absolutely change your life.
Out of the first few deals that you did, how many of those were driving for dollars? Is that your bread and butter in the beginning?
Everything so far. Everything she was doing was virtual. She was virtual driving for dollars and I was calling. After the door knocking that’s all we did. She’d virtually drive, did systems, and all that stuff. I called and worked on other stuff. I don’t even know what we did half the time. We are just figuring out the system, going and networking, trying to figure out how this business works and how contracts work. It can be a painful process to find your attorneys and do it but you got to go do it. You feel like you’re wasting time or, “Should I be doing this?” The balance of all that is hard. We have only stuck to one marketing channel because we’re overwhelmed with leads still. We’re being bombarded with leads. We haven’t texted anybody. We haven’t done anything else except cold calling and TTP.
Talking to people will absolutely change your life.
We’re grateful. We stopped. Honestly, we got to figure something out. We prayed. We kept thinking about you and we’re like, “Let’s join.” We only had $30,000 and we’re like, “Let’s throw some more money. Let’s spend on it and get mentored.” It’s not just you, it’s your group and your family. It’s the value that’s provided. It is powerful. I’ll say that to anybody. That’s why we’re doing this because we wanted to give some kudos to you because when you do take action with the right guidance, you do see results. We want to say thank you to you.
You guys did all the hard work but I appreciate it. I love that you’re in the TTP family and everybody loves you there. You’re a huge inspiration. When you’re talking to your family and friends now, you’re explaining what you guys do, are they curious? Are they like, “I have no idea what you’re talking about?” What does your family feel about this?
They’re still confused. We have to explain it to them. I was talking to one of my friends and telling her the success we had had. She’s like, “You’ve got to be kidding me.” She was blown away.
It’s amazing. It’s like, you’re buying and selling instead of cars or something smaller like you guys explained. House is the biggest thing. It’s got the biggest spread. It’s true. You’re going to make the most money if you do.
What’s the big goal? Are you thinking portfolio, opening up your own bank, development, doing creative flipping, or Airbnbs? When you guys come together and have a conversation about the next 5, 10, 15, and 20 years, what does that look like in the real estate world?
We got into this initially for the wealth-building side. You’ve got to learn to get those deals. It’s getting the deals and being able to finance those deals. Now we’re in the place where we’re finding awesome deals and we’re good at negotiating. We’re working so well as a team. We’re raising private money to keep deals. If you put all your big chunk of money into one thing, you’re stuck. But if you are able to learn the structure that we do on day one, do we even think about that day one? No. You got to take this business one step at a time. We’re going to be doing notes.
With the $93,000, we joined Pace’s program. We wanted to start. We’re like, “We should probably learn pre-foreclosures. We got a big fat check from one so let’s figure this out.” We’re learning that world. We bought and we’re holding two properties. One of them is financing through private money. It’s a killer deal. We’re selling a lot and it’s going to pay off the house that we bought with it. The other one is a steep, discounted commercial property. We’re figuring it out but it’s such a steep discount. You can do whatever exit strategy you want. We’re probably going to do a note on it and sell or finance it to somebody.
I’m happy for you guys. I remember getting that call from you when that agent was trying to backdoor you on that. We walked it through. You did all the right things and were able to get a close but that did not happen. The moral of the story here is that does not happen unless you build a real relationship with that property owner. If you’re trying to do this, call people, send offers and try to get it, you’ll get the lowest hanging fruit but you can’t build a successful business long-term that way.
You need to build relationships in your community, go there, serve them and say even if you’re not going to make money on them, “These are the different options you have. Here’s the option that I can provide for you to work together. If that’s the one that you feel is best for you, talk to your family, friends, or whoever you need to do, and pray about it. Whatever counsel you need to make a decision. If it’s working with me, I’m going to take care of you.”
When they feel that somebody comes knocking on the door and they have that commission breath and sneaky vibe to them, they’re immediately repelled. It happened dozens of times throughout my career. Every time they stick with us. It’s incredible because we do a good job and it’s the same way that you guys do. Talk to people now that are getting started. What’s your advice? How do you keep people to stay focused, and stay in the saddle so that they can do it? What words of encouragement would you give them?
I’m going to do a plug and I’m not getting anything from this. I was able to call the realtor trying to backdoor me, Brent. That’s pretty powerful. I’m giving credit to where it’s due. To everyone reading, if you’re on the fence, I want to give back. I hope somebody signs up after reading this. The very powerful move that I made is I’ve been able to call Brent. That’s part of it. The first step is to get some mentorship and stop playing around with YouTube videos. They’re great, helpful, and encouraging but get some real leadership and mentorship in your life. My man over here answered my call, encouraged me, and walked me through a pretty dark moment of something like that happening. Get a mentor. You need one of them. The first thing, have some kind of commitment where you commit yourself to something financially to a person and show up.
Advice that I would give to wholesalers?
What encouragement would you give them?
When it gets hard, nothing’s coming through and everything looks like it’s failing. It’s right around the corner. Don’t give up right before your check comes through. You’ve got to push. When you’re discouraged, push harder. It’s tiring at times but it feels good when you get those paychecks. It is all worth it.
It feels better when you go through that struggle. It’s so much sweeter and better.
When we got that paycheck, it didn’t feel like we had won the lottery. It was just right.
Learn to love challenges.
There was nothing handed or given. We have every single bit of that.
If somebody is in Charlotte, wants to squat up with you or doing business and they want to send you some deals that you want to buy or partner with and help them sell, what’s the best way to get ahold of you guys?
We created an email just for this. We’re hustling. We’re doing deals. If you need help with sales, talking with people, dealing with that, I’m an open book. I want to let you look under the hood. Whatever we can do to help. We’re buying deals, raising private money, and any of that. You can reach us at ChadAndHallie111.com.
I am so happy for you guys. Congratulations. $140,000 and 80,000 in equity in your other property. You have the momentum. Keep it. The next step is getting that six-figure deal. The next one is pushing that $93,000 up a little bit to the six figures. Thank you so much for being on here.
A couple of resources, if you guys are going driving for dollars, DealMachine is the top app. It does all the work for you. Make sure you use the coupon code TTP. They love Wholesaling Inc and the Rhino Tribe. They want to give us the biggest discount possible. Like Chad and Hallie, 80% of people get their first deals from driving for dollars going out there. The first set of deals usually comes from that. If you’re interested in joining the most proactive group in real estate investing, join Chad, Hallie, and me. It is the TTP family that teaches in the coaching program.
Go to WholesalingInc.com/TTP. Check out what the program and coaching’s about, all of the support calls every single day, Monday through Thursday, direct access to me. You’ve got to check out all the testimonials. Check out all the people that are having success around the country. If it feels good in your gut, sign up for a call. We look forward to working with you. As always, I end this podcast encouraging you to go out there and talk to people. See you later. Bye. Love you.
- Rich Dad Poor Dad
- Think And Grow Rich
- Brent Daniel’s YouTube channel
- Be sure to join the Wholesaling Inc Facebook group
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!