Posted on: September 21, 2017

Colby Wheeler joined the Tribe in October 2016, and he’s already closed 9 deals to the tune of $140,000… and he has two more deals waiting to close for an additional $150,000! He has an awesome, fearless attitude that allows him to go out there every day and take massive imperfect action – and it’s working really well for his Wholesaling business.

 

The Deal

  • Colby found this particular deal just by knocking on doors. He targeted high equity homes that he identified using PropertyRadar.
  • The property looked distressed, and the app predicted there was at least 80% equity in the home. It’s awkward and difficult to just walk up and knock on someone’s door, but Colby is “always willing to at least try.” That’s a Rockstar Rhino mindset!
  • Colby offered $115k, and the owner said he wanted at least $125k, but they settled on an offer of $118.
  • He sold that to an investor for $19,500!

 

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Episode Transcription

Cody Hofhine: Welcome to another episode of Wholesaling Inc brought to you by Investor Grit. My name is Cody Hofhine. I’ll be the host today and today we are going to deep dive yet another deal to hopefully help each one of you, our listeners, rhino nation, get one step closer to doing their first deal or maybe their second deal or whatever number it is that you will pull some gold nuggets from this podcast. And I am positive after looking at the story that we’re going to share with you today with a rhino, with a tribe member that’s going to share everything deep dive, one of his deals, I know there will be a gold nugget or two that you can implement instantly that will help you get closer to your next deal. So today we have on our show, his name is Colby Wheeler. He’s from Las Vegas, Nevada. He has a two kids.
He joined the tribe back in October, 2016 and he’s already done 11 deals. Now here’s the best part about his story is just how well he has done with these deals. So of these 11 deals, nine of them have already closed, which has brought him in $140,000 and then here is the better part with these three deals, with these couple of deals that are out there waiting to close it is another $150,000. So after all is said and done with these 11 deals, he’ll be at $290,000 in from wholesaling.
And we are going to deep dive some deals. And so without bringing up any more sharing any more of his secrets. Let’s bring on Mr Colby Wheeler. Colby, how you doing, my man?

Colby Wheeler: Good Cody, How are you?

Cody Hofhine: Not too bad. I love this. I feel like this podcast we’ve put on hold a couple of times and I feel like it is the perfect time it’s been meant for today. I’m excited about this and I know this story has been needing to be shared with our great nation to inspire other investors and other tribe members all across this great nation. So let’s talk.

Colby Wheeler: Thanks. I’m excited. Thanks excited to kind of share some things with you guys so [crosstalk 00:02:54].

Cody Hofhine: Cool.

Colby Wheeler: Yeah let’s go.

Cody Hofhine: So tell me a little, fill us in a little bit. You’re in Las Vegas, you’re this city that never sleeps. Is that really true? By the way?

Colby Wheeler: It’s a pretty convenient town, so yeah.

Cody Hofhine: Awesome stuff. Now with that being said, give us a little bit of background. Tell us a little bit about maybe what you did prior to investing and what got you into investing.

Colby Wheeler: I’ve always had kind of the bug for real estate, got into some other coaching programs, but you know, nothing ever really clicked for me. Was chasing foreclosures, you know, back in 2010 to 2014 or so. But I’d never, never really clicked for me or how to make money from that stuff. But then when I discovered Tom and Cody’s podcast man, that just a light bulb clicked and I just knew I could do that. And so just a couple of simple strategies and hit a few Millers and found my first two deals before I even joined the tribe. So that was, that’s kind of how I got involved.

Cody Hofhine: My man, this is getting even better. I forgot that you actually did your first couple of deals just listening to the podcast, which is super. That gives a, not a shout out to us by the way, that’s giving shout out to our students that deep dive their deals that you were able to find some gold nuggets implement, but more importantly, this speaks highly of you that you heard it, you wrote it down and you took massive action. Was it easy? Was it with no mistakes, help our listeners understand was this easy and did you just do it perfectly? Just flawlessly?

Colby Wheeler: No, and I think that’s, that’s something that I know about myself as I don’t do things perfectly. I just, I don’t want something, an idea comes to me. I can just go and do it. I’m not really afraid to make mistakes per say cause I’m not the best salesperson. I’m not the, you know, the greatest talker with people or just know I just remember always hearing Tom, if you have a good deal, it’s hard to mess up a good deal. That’s kind of what I’ve discovered is, you know, when somebody is really motivated, it’s really almost impossible to mess that up. (laughs) Unless you complete… Unless he completely offend someone or something.

Cody Hofhine: Yeah. Yeah.

Colby Wheeler: So.

Cody Hofhine: Well perfect. So couple of deals under your belt then you joined the tribe, you start going to town, you’ve obviously have done a lot since then. You’ve done nine deals, all this being there for your kids. Like there’s a lot going on. Are you still the one doing everything? Are you the one picking up the phones? Do you have a team in place? What does that look like?

Colby Wheeler: That’s my struggle right now is I’m just the sole practitioner and I need to transition out of that mindset and start getting a team in place because really that’s, I need to start building my business right now. I just have a job where I wear all the hats. So it’s becoming frustrating, especially when I send out mailers and they get inundated with phone calls on my, Holy crap, this sucks. So [crosstalk 00:06:02].

Cody Hofhine: I was a… [crosstalk 00:06:02].

Colby Wheeler: A Lot of my, a lot of my success has been from cold calling and so I feel like… [crosstalk 00:06:06].

Cody Hofhine: Good for you, man.

Colby Wheeler: When I want to put down, you know, the time and effort and just start cold calling and I find a lot of stuff from return mail pieces. I dig through those and I skip trace a lot of those. And so that’s where I start cold calling people and start digging into and I find a lot of deals that way.

Cody Hofhine: Super smart. And I hope everyone listened to that. A, the fact that he’s not afraid to wear all the hats. B, that he’s not afraid to pick up the phone and cold call people. And then the other gold nugget is the return mail. Guess what? If you’re getting returned mail, guess who else is getting returned mail? The other investor [crosstalk 00:06:49].

Colby Wheeler: Right.

Cody Hofhine: That is mailing to the same person. So what are you doing to differentiate yourself from that investor? And Colby just nailed it. He is taking that mail and skip tracing, finding out where these people live or finding a contact number and calling them, reaching out to them and talking to them. Guess what that also means? Colby is probably the only one on this deal because not many investors are doing that. They kind of just do the one and done, put it in the mail. If it comes back, throw it in the garbage.
Colby doesn’t. He is skip tracing and finding these individuals and finding great deals that way and this was what leads to huge amounts of success by the way. So awesome for that. Let’s kind of go right into it. Is this, is this a good time to rock and roll and get these people fired up about what you have done recently and share one of your deals right now?

Colby Wheeler: Yeah, absolutely.

Cody Hofhine: Okay, so let’s go through this and let’s walk it down granular. At any point if you feel me kind of slow you down is because I literally want this step by step so that we can literally help everyone that’s listening to this podcast, pull something out and implement it. So let’s take it right from the very beginning and, and walk me through it. Meaning, what was your strategy for marketing? And then let’s go through the whole entire approach. Let’s start right there. How, were you going to be finding this home? How did you find this home?

Colby Wheeler: This, this home I found just from knocking doors and specifically I was targeting homes with equity in a neighborhood.

Cody Hofhine: Now how do you come across that? What is the means to know when you’re in a neighborhood and you’re getting ready to knock a door, that you know the door you’re knocking is potentially a home that has equity. How did you come across that knowledge?

Colby Wheeler: So I, I use a service called Property Radar. And it, it’s a pretty detailed service, but it only works on, it only works in certain States on the West coast. So I believe that Nevada, Arizona, California, Oregon, and Washington

Cody Hofhine: East coast, sorry to not help you here.

Colby Wheeler: So they, they pull data from all of the counties in, in those States, I’d say the majority of the counties that, Oh, that’s public information. And so they, they organize all that data into a property profile for each property. And so you can go into the map view on your phone and it’ll pull up a map of where you’re at located it and then you can do a layer that shows homes with equity and it’s all kind of a guesstimate. It’s never accurate.

Cody Hofhine: Sure. But [crosstalk 00:09:21].

Speaker 2: So I just start walking [crosstalk 00:09:20].

Cody Hofhine: At least I’m filtered to give you a chance right? Okay.

Colby Wheeler: Right. And the reason being, I did this as I was just, I was getting a little frustrated because I hadn’t done a deal in a few months and I was like, man, I got to make something happen. Because a lot of my income depends on you know, what I make is what I depend on. And so it’s like, man, I’m running out of money. I need to go, just knock doors. (laughs) And so I just found this neighborhood. I had went through a couple of streets and then I found one home that, you know, look distressed and it popped up as you there’s probably at least 80% equity or something in the home.

Cody Hofhine: Wow. What were the signs of distress? When you say distress because you’re looking in the home says, okay, this home potentially has equity and now you’re looking at, it says not only is that equity, it looks distressed. What were the signs distress?

Colby Wheeler: These are older homes, homes built in probably the 70s and this home had not been updated at all and so the yard was yard, just dirt, dirt, lawn, you know, dirt, dirt front yard and the paint. Everything just looked really old. And the garage door, everything just looked old and outdated compared to the other homes around it. And so I just went and knocked on the door, didn’t, I wasn’t quite sure, you know, the home could’ve been vacant, looked like from the outside but, but knocked and the older gentleman answered. And

Cody Hofhine: How was that? Was it awkward, here you are asking them. Usually you get pests, right? That just walk in your home and they’re like: “Hey, you want us to spray your yard for spiders.” And you’re like: “Come on, read this sticker. It says no solicitation. Like come on.” So is it an awkward conversation? [crosstalk 00:11:01]

Colby Wheeler: It’s it’s always a little nerve wracking, you know, cause you never know what response you’re going to get. But I’m always willing to at least try.

Cody Hofhine: (laughs) There’s key. Guys listen to this like this is awesome. I don’t care, it’s going to be hard. There could be some that’s going to chew me out but I don’t care. I’m going to at least try it. I absolutely love that mindset.

Colby Wheeler: I think what gives me that mindset mostly because I’ve tasted, you know, the reward of wholesaling, you know, the dollar amounts that, the upside of everything. And so it’s like, man, my fears are afraid of being rejected. Being told no or whatever. I’m like, doesn’t really bug me anymore just cause I just need, I just need one deal right now because it could be huge.

Cody Hofhine: So you knocked on this door, gentleman answered the answers the door and let’s kind of break down the just of this conversation.

Colby Wheeler: Yeah. So he’d said, you know, yeah, I’m looking to retire and I’d definitely be open to wanting to sell my home. It’s like I get letters in the mail every month. And so, you know, tell me what, tell me what your offer is. I’m like. Well I can’t, I can only make an offer right now and on the spot. But you know, I’d happy to do some research and get back to you. Can I have your phone number? He said, yeah, sure. And he gave me his phone number and so we just talked at the door pretty briefly and then a few days later, it was like the following the first of the week following week and followed up with them and he’s like, Hey, I’ve been, I’ve been thinking about you. I was waiting for you to give me a call. (laughs) I was like, Oh great. well.

Cody Hofhine: (laughs) waiting on you. Come on. Colby.

Speaker 2: (laughs) I, we talked and I gave him a number. I asked him what he, what his number was first I was trying to get the number out of him and he said, well, you’re the one that knocked on my door so you, you tell me what your price is. You know, well I don’t even know what, what’s ballpark for you? You know, are you in the 1 – 115 area, 115,000? He’s like, Oh no, you’re going to have to come up from there. And so he’s like, I’m thinking more, I’m thinking more like 125 and I’m like, ah, you know, I don’t, I don’t think I can make that work. And so that’s kind of the number we got hung up on. And I hung up the phone with him. You know, I just said I don’t think I can make that work. If something changes for me. I’ll give you a call back and he said, okay, I hung up. And then I did my math again. I’m like, man, I think I can get, if I can get him at one, what did I do, I think I did 118.

Cody Hofhine: Uh huh. And what was it home fixed up? If you fixed it up, what were you seeing? So they can kind of sort of, listeners can kind of see what this home could be. What’s the value of his home after it was fixed up? While you’re looking that up, listeners, if you’re listening to some of this thing, this is what’s key is marketing. You never know when it’s going to work, right? So the whole point behind marketing is stay consistent because it does come down to three things. It’s sending the right message to the right person at the right time. This gentleman had told Colby multiple times, like I have been receiving letters and I’ve received letters often about my house. So here’s the best part. Here’s receiving the message. The right person was receiving it. It just wasn’t the right time when he was receiving it.
But then Colby came along, knocked on his door and it now happened to be the right message to the right person at the right time. So he who stays consistent with their marketing is going to be the one that finds more deals, is going to be the investor that closes more deals. The moment you stop marketing and being inconsistent with your marketing, that is the moment when your business will completely fall apart. You always have to be marketing and this is huge for Colby because he was the right message to the right person at the right time.
And here he’s going to talk and break down this deal for us. All right. Did that kind of give you a little bit of a time break to give us a number?

Colby Wheeler: Yeah, so I think it was probably worth, you’d probably at 185 I think it was what when the investor bought it, that was kind of his prices. [crosstalk 00:15:28].

Cody Hofhine: Like fixed up, that’s what it’d be?

Colby Wheeler: Fixed up value. Yeah.

Cody Hofhine: Okay, so you end up putting this home under contract. He wanted 125 you were hoping 115 and then openly moved up. Did you say 118 was the number that you guys finally came up to?

Colby Wheeler: Yeah, 118. I wholesaled that and I sold that to an investor and ended up making 19,500 on that one.

Cody Hofhine: 19,500 you went right to the shibang before I could even get a victory bell ready? Hold on one second. All right. $19,000 on assignment, so you put this under contract at 118 now was it, was it just you because those are, those are tighter numbers in the sense of right off the bat. If I had those same numbers, I don’t know if in my mind I would think, Oh, I just scored, I just scored a slam dunk that could pay me $19,000 like was this something that instantly an investor wanted or was this something that took some time? What did that look like when you were talking to some of your cash buyers?

Colby Wheeler: It was pretty quick. Vegas is, it was not a lot on them, on the market right now. So there’s, there’s a demand for inventory. A lot of rehabbers are just kind of taking whatever they can get because they know by the time they’re done with their rehab, you know, our homes are appreciating pretty quick down here. So yeah, there are definitely hungry buyers are hungry down here. (laughs) I was surprised. [Crosstalk 00:17:00].

Cody Hofhine: What is that, 137? Is that right? My math right. [crosstalk 00:17:04].

Colby Wheeler: Say that again?

Cody Hofhine: 19,000 on 118 137 so sold it for one 137 [crosstalk 00:17:08].

Colby Wheeler: Yeah.

Cody Hofhine: My man. So tell me this, is that like the best knock, like on a door, the highest paid knocking you’ve ever had in your life or do you continue to do this approach?

Colby Wheeler: I mean for knocking doors, that was amazing. But my first two deals, we made (laughs), I don’t know how I got so lucky. The first two deals in one month they generated like $90,000 and these were vacant. Vacant homes.

Cody Hofhine: We have to move to Vegas. Everyone listening to this podcast, let give him some competition and let’s move to Vegas.

Colby Wheeler: I think when I did that, I was like, man, that was, it’s luck. I don’t know how they were in the same neighborhood, vacant homes. We just got them for dirt cheap and nobody thought the people that are selling them, there’s like oh, you know, we’ll sell them for whatever. [crosstalk 00:17:59]

Cody Hofhine: Sure.

Colby Wheeler: Amount and so [crosstalk 00:18:03].

Cody Hofhine: Sure.

Colby Wheeler: But we ended up not even retouching them. We just, I mean we got an amount and then just put them back on the MLS. We hold those two deals.

Cody Hofhine: For a cash offer?

Colby Wheeler: Yeah, so they’re out there. I mean I can’t say only once in a blue moon, but those deals are out there where you can make 20,000 or more. [crosstalk 00:18:20]

Cody Hofhine: And that is so true. I sit here and I tell people it doesn’t come often, but it comes often enough.

Colby Wheeler: Right.

Cody Hofhine: It seems like once every quarter, if you’re lucky, hopefully once every month. But once every quarter you come across one and there’s some times that I really don’t even know what I have. Sometimes it’s just going out there, taking imperfect action, putting a home under contract for as low as possible and then turn it around. And then all of a sudden I’ve put out a price before where we tried to assign a deal to an investor. And we started at 279 and it ended up getting bidded up to 300,000 and so I didn’t know that was going to happen. I just did it. [crosstalk 00:19:02].

Colby Wheeler: Right.

Cody Hofhine: I had no idea it’s going to happen. And so that changes the game. I mean that’s a $21,000 increase from what you even thought was possible.

Colby Wheeler: Right.

Cody Hofhine: And so it’s little things like that too that happened in this game that I absolutely love. And those are kind of like those, the gravy on top right which is. [crosstalk 00:19:20]

Colby Wheeler: Hmm.

Cody Hofhine: Which is super sweet. So from there, $19,000 super awesome. What is a typical, to help maybe some of our new listeners, if they were to get a deal and they had a deal that paid them $19,000 what could they see Colby do with that money? Like, how much money would you be putting right back into marketing? How much money would you be taking home? Do you have any of those numbers set up?

Colby Wheeler: I try and do half the, I do 50% I mean I obviously put taxes away. I followed the

Cody Hofhine: Profit first. I know, I [crosstalk 00:19:50].

Colby Wheeler: Profit first yeah. [crosstalk 00:19:51].

Cody Hofhine: I love it. That’s a good book. Everyone listening [crosstalk 00:19:52]

Colby Wheeler: That was one of the first books Tom told me to read when we first got on the call together. You know, that’s just a really simplistic way to do your accounting. For me, I’m not familiar, I’ve never had any background in accounting. It’s very simple to follow and just methodical. So it’s, that’s, that’s what I do. Pay the taxes, take out 50% and then I put that money aside cause I don’t have a lot of operation costs.

Cody Hofhine: Sure.

Colby Wheeler: You know, I don’t have anybody working for me, so I put that money aside and try and spend that money just on, you know, marketing pieces or I spent a lot of money in skip tracing. And so you know that’s a kind of a service that I use each month to find deals. So that’s where some of the money goes to, but

Cody Hofhine: Well Colby, if you were to say something that would resonate and help individuals out that are listening and we have a lot new listeners that are listening maybe even for their first time on this podcast and we welcome you guys. Thanks for being part of this. But Colby, how could you help them if you were to start all over right from the very beginning, what’s one piece of advice that you would give out to these, these people trying to get into wholesaling? What would you say is probably one of the most crucial things for them to do?

Colby Wheeler: Not being afraid to sound like an idiot. I think that just comes across as being more real with people instead of sounding more salesy and saying the perfect things at the right time. It’s just taken action and not being afraid to make mistakes. And you know, it’s little things, especially when usually I have other jobs or taking care of kids. You know, it’s, if you can accomplish a couple things a day and making a couple phone calls a day, like it’s just slow progress, that’s fine. You’ll eventually, you’ll get something land, something. It’s just, you know, simple progress and not being afraid to make mistakes.

Cody Hofhine: Absolutely. I love it. So go out there, make mistakes. It’s okay. The successful people, all the people that you know that are successful, that you see as successful individuals, Colby nailed this right on the head of the nail. And that is they are not afraid to go make mistakes. In fact, Thomas Edison, one of his quotes talks about he did not fail. He just found 10,000 ways that didn’t work. So if you can just not look at it as failure, go out there, make mistakes. It’s okay, but you’re going to find ways that don’t work. But every time you find a way that doesn’t work, you’re also getting closer to finding the way that does work and you’re miles ahead of the person that’s not trying anything at all. And I can promise you that.
What about a book? What book? You’ve mentioned Profit First, which I would highly recommend if you’re looking on how to run finances for your business or how to operate your wholesaling business. Read Profit First. It’s a simple book that teaches you how to make, make your business profitable, but besides that book, what would be a book that you would share saying, Hey, this is a great mindset book, or Hey, this book has helped me accomplish so much. What would that be?

Colby Wheeler: Man, I’ve been through so many books the past year. I think one, (laugh)not really business-related, just mindset. Really a book called the Man’s Search for Meaning. It’s just a fascinating book with putting things in perspective as far as life is a great book on a guy that went through the Holocaust. I mean, I don’t know. That’s just something that’s on my mind right now. I’ve just been recently reading, so not really business-related but more just life in general, but it’s a, it’s a good book.

Cody Hofhine: That’s now on my list. [crosstalk 00:23:31].

Colby Wheeler: Profit, Profit first. That’s always a great reference.

Cody Hofhine: That’s now on my list. I’ve never read that book, but I love a good referral. On a good book. So I am going to go into the Amazon super quick. I feel like Amazon owns me when it comes the books by the way (laughs) So that’s exciting stuff. Well Colby, I want to personally thank you. I know there’s so many people out there that are looking to get into wholesaling that they’re listening to your story and they’re like, I’ve got this, I’ve got this. I know Colby has made a lot of money doing this, but I’ve also heard that it hasn’t been easy. He made mistakes. It sounds like you’re a pro, but you’re willing to always tell people humbly, no, I made mistakes I made a lot of mistakes, but it’s those mistakes that was your education.
So many people get into that analysis paralysis and they go to YouTube and they go to Google and they go to this and they go to that and they keep educating themselves and they get over analytical and end up being in paralysis where you’re just saying, no, just go out there like take a little tidbit, take a little gold nugget and go implement it and then come back and adjust if needed. Or you might find out that, that’s working. So good for you. You just add to it and [crosstalk 00:24:42].

Colby Wheeler: Right.

Cody Hofhine: I love it. Colby, thank you so much for sharing that wisdom, sharing those gold nuggets and there’s so many people that are going to be pumped after listening to this podcast.

Colby Wheeler: Cool. Well thanks for having me, it was a pleasure sharing.

Cody Hofhine: Awesome stuff. Well, I know you’re going to be going right back to work. You’re an action taker. You’re someone that goes out there and finds your next deal. It won’t be long before you have a team in place. I know what I can feel it. You’re wanting it and you’re definitely going to find a way to make that happen. I know you are. So rhino nation, this has been yet another amazing episode where one of our tribe members, Colby Wheeler has broken down yet another deal step-by-step so that you can hopefully grasp onto some kind of knowledge, some kind of a golden nugget that you can pull away and implement today.
The power behind this podcast is not just listening to it. You can feel great about it, it can build you up, it can inspire you, but remember where it counts is when you pull this information from it and go implement it. If you can do that, it’ll get you one step closer to your first deal and it only takes one. That’s it. It only takes one to get the bug to where you want to do this full time nonstop where you eat, sleep and drink wholesaling and it will be great for you. If you guys personally need help building your wholesaling business, go over to our link. That’s wholesalinginc.com. This is our website. It’s wholesaling I N C.com you can click to book a call with one of our team members, and if we love what you have to say, we just might invite you to be part of the tribe and next time rhino nation, take care and we’ll see you soon.

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