Posted on: December 13, 2016

Why Wholesaling is the Foundation of Real Estate Investing!

What does it take to make $60,000 in 7 months through wholesaling? Meet Philip Marsh from the Rhino Nation. Phil is a MASSIVE action taker and is now winning the game of wholesaling.

He transitioned from doing fix and flips to wholesaling because one day he woke up and realized, ‘Hey, wholesaling really works!’ Phil has been making deals and continuously growing his business. From his humble beginning of not having a clue about the business to now doing consistent wholesale deals every month, he surely knows what it takes to find massive success in wholesaling!

Discover the realizations he has made on his wholesaling journey, what helped him kept going, and how he plans to become the best wholesaler he can ever be!

IN THIS EPISODE YOU’LL LEARN:

  • Phils background and how he got started in wholesaling
  • What it takes to “WIN” the game of wholesaling
  • Transitioning from fix and flips to wholesaling houses
  • The deal that made him say, “This works”
  • How to deal with a NON cash buyer
  • Making deals the hard knocks way
  • Why it is OK to take imperfect action
  • $60,000 in 7 months
  • What’s next for Phil?
  • At what point should you get a mentor?
  • Eliminating the fear that comes with wholesaling real estate
  • Why wholesaling is the cornerstone of all real estate investing
  • and so much more…

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

Subscribe to Wholesaling Inc

Episode Transcription

Cody Hofhine: Hi, this is Cody Hofhine with another wholesaling podcast ready for you to deliver nothing but awesome content. So welcome to Wholesaling Inc, powered by Investor Grit. Today we are going to deep dive a deal from a fellow Rhino that is in Springfield, Illinois, that is just being a rock star, going out there and taking massive action.
Now for those of you that are new to this podcast, wholesaling is just the art of finding deeply discounted property and then turning it for a profit. So we’re going to talk about one of those wholesale deals that this gentleman has done and has made quite a bit of money this year. He is loving wholesaling and doing an excellent job. So without any more to say, let’s introduce Mr. Phil Marsh from Springfield, Illinois.
How are you doing, Phil?

Phil Marsh: Hey, doing good. Glad to be here.

Cody Hofhine: Good. Okay, so let’s get people to understand a little bit about your background, where you came from, and then ultimately, how you learned about wholesaling and what got you into wholesaling. So if you can start us back to a little bit of background about yourself.

Phil Marsh: Well, I grew up in St. Louis and my dad moved us back to our hometown of Girard, Illinois, which is really close to Springfield, and I’ve lived here since I was 18. I’m 33 now, and I’ve been in the insurance restoration business all that time. Just fixing fire-damaged homes, water-damaged homes, all that kind of stuff.
So found out about wholesaling actually through a network of podcasts, that led me to bigger pockets of all places, and that’s where I learned about wholesaling. And then I eventually found out about Tom Krol and Joe McCall, those two. I understand they work together, and next thing I know I’m trying to wholesale, and I run across my first deal and the rest is history. I’m making money. It’s just an amazing thing.

Cody Hofhine: Awesome. Awesome. So to kind of give a background, so you were restoring these homes for insurance companies when they have a claim, and then it led you to listen to podcast, and then were you already wholesaling before you even found a mentor? How did that look? Did that look like you were just going out there and just take an action and like, “Hey, I’ll learn along the way.” Or how did that look?

Phil Marsh: Well, my main focus beginning … I’ve fixed and flipped homes for about 10 years. I do about one every two years. So that’s all I ever knew about real estate investing. I’d always heard about buy and holds and considered doing it, but I was always real kind of scared to do it. I just heard the horror stories of tenants.
By the beginning of this year, I started hearing about this thing called wholesaling and I was already fixing, flipping some houses. My wife and I went full-time this year, trying to go full-time real estate investing, but we were focusing on fixing flips and we had about two going, and then I ran across wholesaling.
My first deal was actually a realtor gave me a lead and I went over and got a house under contract and with the intentions of wholesaling it. I made a couple phone calls, found an investor. I made $2000 on that deal. It wasn’t a whole lot, but that’s what proved to me that this works.

Cody Hofhine: That was awesome.

Phil Marsh: And then after that I knew, “Wow, this really works.” The rest is history. I started putting out signs and marketing, sending out mailers, just doing everything I could to make a business out of it.

Cody Hofhine: Okay, so let’s do this. Let’s deep dive one of your most recent deals. We talked a little bit about before we started this podcast, one specific, if you can give us a direct how this came across. So we’re going to be talking about how, what channel he used, what marketing channel he used to find this deal. So listeners, get your pad of paper and pen, and start writing this stuff down because you will learn really quick how simple this can be and how deals can be all around you. It’s just, are you taking action like Phil did to find this deal?
So Phil, walk us through this one deal that we just talked about recently. How you started to market for it, what that looked like, and then ultimately, walk us through the whole story. So how did you find this deal that we’re going to deep dive today?

Phil Marsh: Okay, this deal was at the beginning. This was the second deal I ever did. Everybody that I was talking to, mentors, they were telling me, “Phil, if you’re not talking to buyers and sellers, you’re not making money. That should be your focus.” So I was just trying to come up with … That was before I even really knew how to market properly. So I just knew, “Okay, I’ve got to call people.”
So I literally got a list of contractors from the local Home Builders’ Association, I was just calling everybody I could, just any name I could get that I thought would be into investing, would know about deals or anything. And then I thought of a guy that I knew, I’d worked with for a long time, he owned an insulation company, and we had subbed out to him in our construction business. He had hundreds of properties. So I called him and asked him if he knew of any deals out there and he said that, “Yeah, I actually passed on one about a week ago. It’s a guy that’s selling an apartment building in a small town outside of Springfield. You ought to give him a call. It was a pretty good deal. I just wasn’t interested.”
So I called him up and met with him. I’m walking through … I mean I’m like … I’m going to be honest with you, I had no idea what I was doing. This is a six unit apartment building. I’m walking through this thing acting like I know what I’m talking about, but I don’t have a clue. I mean, I know construction, but I didn’t know if this was a good property for an investor or not. I had no idea. So I got it under contract, scared to death, put down $700 earnest money. I actually called my banker to help me analyze the deal because I was thinking about buying it myself and for my first rental property. And he told me, “Yeah, the numbers are good. It looks like a good deal. Yeah, I think you could make this work.”
So anyway, about two days later I thought, “You know what? I’m going to try to wholesale this. I’m going to see if this will actually work. I’ve done one deal, let’s see if it’ll work on this.” So I made a couple phone calls, and the way I have found my buyer, was I actually got on Google Maps and I just Google searched construction companies. I figured you know who else … That would be a potential buyer, somebody that wants to buy a place that needs to be fixed up.
I called two people, and the second guy actually was a guy I knew in a neighboring town and he said, “Yeah, Phil. I’ve been buying rental properties lately. I’m looking for some. I’ll go look at it. I’ll be there in an hour.” And he called me about an hour later and walked through it and said, “Hey, what do you want for it? Because I already talked to my banker. I’m approved. Just name your price.” So I just, I had no idea what I was doing. I just threw out a price that was $10,000 higher than what I had it under contract for, and he said, “Sounds like a deal. Let’s do this.”
And the unique thing was he … The unique thing too is that all the podcasts I had heard had said, “Make sure your buyer’s a cash buyer. It has to be a cash buyer.” This guy actually had to finance the deal, that was the only way he could come up with the money. I’m scared to death. I’m thinking, “How does this work? How am I going to do this?” But ironically, his banker was my banker. We all knew each other very, very well. So I just communicated with … I was just completely honest. I didn’t hide anything. I just told the banker exactly what I was doing. It was going to be an assignment. He said, “Hey Phil, no problem. Not a problem at all.” And it took about 45 days to close, but you know, I made $10,000 on that one.

Cody Hofhine: This is beautiful. So Phil, here’s a couple things I want to point out to the Rhino Nation listeners right here, is the fact that if you can do, mimic, exactly what Phil has done, if you’ve listened careful enough, he has thrown out so many gold nuggets just in that little bit of talking right there.
First and foremost, he jumped on just taking action. He started calling people. So this didn’t even come from like … We talk, we have podcasts of people doing direct mail, or we found this deal through a bandit sign, or we found this deal through pay-per-click, or we found this deal through Facebook. This was like hard knocks, let’s pick up the phone, let’s start calling. Phil started just calling and doing networking. I’ve always heard the funny quote saying, “It’s network, not net sit.”
So he got on the phone, took massive action and imperfect action. How many times did he say during this that, “Man, sometimes I really didn’t even know what I was doing.” But did that stop Phil? Absolutely not. So he got on the phone, started calling people, ends up coming across an investor that says, “Yeah, I passed on this deal. You might want to go look at it.” Phil goes out there, looks at it, has no idea how to analyze an apartment.
I think so much of us, so many of us start thinking about, “Oh, but I got to have a good comp, and I got to do this, and I got to know my numbers.” Phil didn’t know this. All he knew is there was a potential deal at hand. He’s out there, he’s talking to the seller, he made an offer, he put it under contract and Phil walks out … Well, I guess let’s take it back another step. He takes imperfect action, starts calling more people saying, “Okay, here’s some contractors that might want it.” The second phone call happens to be a contractor that says, “Heck yes, I want this. I’ll be down there. I’ll look at it. I’ll make you an offer.” And he makes $10,000.
The biggest thing you can learn from this listeners, is the fact that he took imperfect action. He didn’t 100% understand exactly what to do, but he learned it as he got into the trenches, and he thought, “Okay, I’m at this point, there might be a little wall, so I’m going to call the banker and say, ‘Hey, here’s what I’m doing. This, this, this.'” The banker says, “Hey, it’s okay. We can do that, that, that, that.”
So just remember, it is okay … This is the best lesson you can learn, that take imperfect action. So Phil, with that being said, how many deals have you done total, and I guess how long have you been wholesaling? How long would you call yourself like, “Hey, I’ve been wholesaling for X amount of months.” What does that look like, and how many deals have you done in that amount of time?

Phil Marsh: I don’t really know exactly when I … I tell everybody I started in April. April 1st is whenever I say that I officially gave it all of my focus. I’ve done 11 deals since then. Before that, I really knew nothing about wholesaling until maybe January, February, hearing about it on podcasts.

Cody Hofhine: So awesome. So, 11 deals. And in those 11 deals, what have you made in the total? Do you know that number?

Phil Marsh: I don’t, It’s not a whole … I mean, compared to some of the big guys, it’s not a whole lot. I’d say it’s probably, 60 plus thousand.

Cody Hofhine: That’s huge, Phil. That’s huge. I love it.

Phil Marsh: For smaller ones, that I was just trying to learn the game, made a thousand here, a thousand there. But I had a couple of big ones that helped out. So I mean, I’m not complaining. Hey, where else are you going to make that kind of money? You’re not.

Cody Hofhine: Right. So, here since April. So we’ve got April, May, June, July, August, September, October, November. We’re into it seven months. Who out there would love to make an extra 60 grand? Now remember, Phil also has this restoration company where he’s fixing up homes that have insurance claims, so he’s got an income there.
Who would love to have a little side cash of 60 grand? I know Phil, I’m raising my hand, even myself. But all of our listeners, guaranteed, are raising their hand right now and that is an absolute success. In fact, let’s get out the victory bell real quick. Let’s hear this. My man, Phil.

Phil Marsh: Oh, yeah.

Cody Hofhine: Okay. So where are you going from here? What does it look like? Have you been getting more consistent with marketing? What’s your channel that you’re going to do? If you could tell our listeners one thing like, “Okay, now that I’ve done this, here’s what I’m doing now so that I can find future deals.”

Phil Marsh: What I’m trying to do now is I’m just trying to get more focused. I ran into a problem where I just got so distracted, it was like I was chasing all these rabbit trails. And when you’re listening to 10 different podcasts, you find yourself wanting to do 10 different things. So I’ve learned just focus on buyers and sellers. If you’re talking to buyers and sellers, you’re going to make money. That’s where it’s at. Nothing else matters. Everything else is just stupid. That’s just what I’ve learned.
And getting a mentor helps just so much because those days that you’re down, if you got somebody you can reach out to and just kind of share whatever, they just kind of give you that kick or that charge to get going. And also Facebook groups, if you can get a part of a Facebook group where there’s just people that are killing it, man, it just motivates you so much because you think, “Man, they’re just like me. They’re no different than me. They’re humans just like me. Why couldn’t I do that?” It just inspires you. [inaudible 00:12:16] get a mentor.

Cody Hofhine: So Phil, at what point would you recommend a mentor? If you were saying, “Hey …” Talking to everyone out there, at what point would you say, “If it were me at this stage, I would get a mentor.” What is that stage?

Phil Marsh: That’s tough one because I’d hate to see somebody invested if they weren’t serious about it. If you’re serious about it and you know you want to do it, then why learn the hard way, and why not just hire somebody who can tell you exactly how to do it? They save you so much time and effort.
I mean, ever since I got a mentor, I mean it just was … They just laid out the blueprint, “Do this and you’ll be successful.” And what was crazy is sometimes it was as simple as, “Hey, are you talking to buyers and sellers?” “No, I’m not.” “Well then, what’s the problem? That’s where it’s at. You need to get back on that.” It just kind of helps keep you focused. As soon as you know you’re ready and you are serious about investing or wholesaling, get somebody to keep you accountable.

Cody Hofhine: And the key point there Phil, that I love, I had a mentor. My mentor had a mentor. His mentor had a mentor. We talked about this on one of the podcast episodes. You have even Peyton Manning, who had this ESPN episode not too long ago that talked about having a mentor his whole life. This guy was a great quarterback. Why would a great quarterback need a mentor? And he did. He had a mentor. Even through the NFL, he still had a mentor.
All of the greats have mentor. I can tell you, it’s the easiest way to achieve success because they’re already successful, and these mentors put you right into place so that you’re already starting off successful versus going through all the grind. Would you agree with me on that, Phil?

Phil Marsh: Oh, yeah. They’ve led the way. I mean, fear is the biggest hindrance that I have and I think we all have. But when you see somebody that’s miles ahead of you and they’ve [inaudible 00:14:01] made it, it just eliminates the fear. They’re up there saying, “Come on, it’s safe. Come on, come this way.” And that’s what I’ve learned with having a mentor. I don’t want to be a pioneer.

Cody Hofhine: Awesome. So what motivates you, Phil?

Phil Marsh: I was actually talking to my wife about that this morning. I said, “I just need to get that ‘why’ and nail it down. I just need to get that ‘why.'” And I’m not sure I’ve figured it out. All I’ve ever said is, “I just want to be successful. I want to be the greatest me that I can be.”
In wholesaling, I feel like I finally found that niche. Just investing in general, but having wholesaling as a foundation, because it’s the foundation of all real estate investing. Everything starts at wholesaling. Because now that I’ve started wholesaling, I now own two rental properties. That was all because of wholesaling. I found deals that I couldn’t pass up and so I bought two of them myself.

Cody Hofhine: Man, that’s fantastic. And that ultimately turns into that legacy wealth that Clayton Morris talks about in his podcast, being able to have something that when you stop working, there’s still money coming in. There’s still people paying off your homes that you ultimately own. There’s still cashflow coming in each and every month. So I commend you. That is awesome stuff.
And I 100% agree. It starts with wholesaling. You go in there, you find a deeply discounted property, and you cherry pick your best deals and you can keep those as rentals. So I absolutely love and 100% agree with you when you’re talking about wholesaling is the beginning step for everything because you’ve got so many options once you know how to find a deeply discounted property.

Phil Marsh: Yeah, and they do exist. They are out there.

Cody Hofhine: Perfect. That is the best. That’s the … I think so many people think, “Oh, this isn’t real. Man, it’s too late.” I had the same fear. One of the biggest fears I had to overcome was MLMs are huge in Utah. MLM is just the multi-level marketing and they’re huge in Utah. For whatever reason, MLMs target Utahns all the time. Maybe we’re just gullible people. But I always had this fear of, “If Cody Hofhine’s hearing about this, it’s too late, it’s not a good time to invest in this product because I’m a nobody and this nobody just heard about it, so don’t do it.”
And I had to get over that because when I heard about wholesaling, I’m like, “Oh yeah, but the good time’s probably already gone. So Cody, you probably shouldn’t wholesale.” But I had to jump over that fear and just get through it, and there was a lot of motivational books I was reading that was helping me, and then ultimately, a mentor that helped me get through that fear so that I could just jump in both feet, not just dabble.
Tell me this, Phil, do you have any motivational books when it comes to … If you could name one book that you’re like, “I read this book and it fires me up,” what would that book be that you would recommend to our listeners?

Phil Marsh: I’ve never been a big reader, but I did start reading this year and I’m trying … I mean, I hate to bring this book up, it’s so common, but the book that changed it all was Rich Dad Poor Dad. I wouldn’t say it was a motivational book, but it just opened my eyes to the possibilities. I just felt like I’d been lied to my whole life, and that book just really changed my life.
And then the one, I forget what it’s called, but it’s a How to Win Friends & Influence People, I think is what it’s called.

Cody Hofhine: Yeah, was that Dale Carnegie?

Phil Marsh: Yeah. I read that one the other day, and that one just was mind blown. Just wow. I mean it was just so simple. A lot of it I already do, but I didn’t realize I was doing it. I’ve been in sales a long time, I didn’t even realize that’s what I was doing. I felt so cheated. I just thought, “Man, why didn’t I read this a long time ago? Why wasn’t I reading this 10 years ago?” I feel like I missed out on so much because it’s …
There’s so many people out there that have already done it and they’ve got it in these books, and you can go hire them to tell you and to teach you. You don’t have to work the nine to five the rest of your life because there’s people out there that are willing to help you get out of it like they did.

Cody Hofhine: Man. Such good words, Phil. I appreciate that. I know you are going to be getting off this podcast and going right back into wholesaling. I want you to know I appreciate your time and I appreciate you sharing the gold nuggets and your ninja secrets that have helped you achieve success in wholesaling. Thank you so much for joining the podcast today.

Phil Marsh: Yeah, my pleasure.

Cody Hofhine: Okay, so Rhino Nation, if you want to learn more about wholesaling, go over to investorgrit.com. That’s investorG-R-I-T.com, and go over there and subscribe to our email list. We always send out gold nuggets weekly, where you’ll get more tips, and I’m talking cutting edge, ninja secrets that’ll help you explode your wholesaling business.
If you want, you can also click on the coaching tab, and you can book a call with our team. And if we like what you have to say, we might even invite you to be part of the tribe. Take care, Rhino Nation.

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