One Question that Led to Three Wholesale Deals!!
As Wholesalers, we ALWAYS ALWAYS ALWAYS need to be thinking outside the box.
There are so many different methods and strategies to land deals, that it’s almost impossible to do it all. Can you imagine asking one single question and getting three deals?
Today, meet Miguel Roman and Pete Russell, who are wholesaling partners who are CRUSHING it in their business!
With their ‘progress not perfection’ attitude, (and massive amounts of “Grit”), they were able to navigate a SUPER difficult, on again, off again, deal!
Despite the long wait and thoughts of this deal being dead in the water, they were able to make it work and even walked away with a nice surprise!
Don’t miss this episode where you will discover what it REALLY takes to make it in this business!
IN THIS EPISODE YOU’LL LEARN:
- How Pete and Miguel took the plunge
- What their 6 deals looked like
- Making a partnership work
- Accountability counts
- Failing forward and getting in the right mindset
- Shaping up a motivated seller
- Details on this particular deal using bandit signs
- The power of follow-up
- How one question led to more deals!
- 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!
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Welcome to another episode of Wholesaling Inc powered by Investor Grit. This is Cody Hofhine and we are going to deep dive yet another deal of how you can wholesale in your market. We’ve got with this some amazing students that are rocking and rolling. They’ve been wholesaling for a little bit over six months and they’ve been doing this, and then about two months ago they joined the tribe and these guys are setting Charlotte, North Carolina on fire. Today we have Miguel Roman and Pete Russell. Gentlemen, how you doing?
Pete: Good, Cody. Has it gone man?
Cody Hofhine: Good, good, good, good. So help us fill in the gaps of a little bit about your background and what got you into wholesale and you guys can kind of direct who you want to have a share that whether it’s you, Miguel or Pete. Either way.
Pete: I’ll take it. This is Pete. Yeah. We worked at a sales and marketing company together for about a year and a half and we were on the same team with that. And I have a good friend from high school who’s actually been wholesaling for about two and a half years now. And he was always posting on Facebook about his success and how much he loved it and how he was turning it into his full-time job, if you want to call it that. So I was in contact with him back and forth with him for a few months and just never went for it and never jumped on board.
And then one day I brought it up with Miguel just, I don’t even know, we were on our break. We used to play ping pong a lot on our breaks and he was totally on board, totally psyched about it. And him being that into it really got me into it. So we started to go to my friend’s meetings. He just had monthly meetings and met up with some other people, other investors in Charlotte. And then we just sat down one day and said, Hey, are we going to take this seriously; are we really going to go for it? And we just took it from there. That was probably back in late May, early June of 2016 and then from there we just, we got serious about it and in dove right in.
Cody Hofhine: Perfect. So a couple things to pinpoint that I absolutely love about both of you doing this is the fact that you heard of something, you heard of a niche in real estate called wholesale, and you had a friend that’s doing it, you saw the success that could come from wholesaling, you knew the individual, but it doesn’t stop there. The best part about this, all of us hear of these success stories all around us and there’s very few that actually take the plunge and jump right in. And so what I absolutely love about what the two of you did is you just jumped right in. Like you said, if this guy can do it, we’re going to learn how to do it and we’re going to do it. And you took imperfect action. You didn’t know exactly how you’re going to do it.
You went to these meetups and from there you did, we talked a little bit beforehand, you ended up doing three deals pretty dang quick and then done three more since then. So a total of six wholesale deals and you’re not even at a year mark. And this is awesome. This is just the power of going out there, having motivation, determination, and then taking massive action and just going out there and trying to attempt to be a wholesaler and you’re succeeding at it. So let’s hear some of the success that you’ve had. So you’ve done six deals so far. What has that looked like as a way of a standpoint of what were you able to make on those six deals total? Do you remember those numbers?
Pete: Yeah. We were right around probably about $10,000 a deal, maybe a little bit between $10,000 and $11,000 average. Some of them were less, one was significantly larger. So averaging out, I would say we’ve been at about $10,000 a deal right now.
Cody Hofhine: So right around $60,000. Are you doing this full-time? Are you still at the job and doing this on the side? What does that look like?
Pete: Miguel is still at the company, the sales and marketing company.
Cody Hofhine: Okay.
Pete: I volunteered to step away from the desk and be the guy, the boots on the ground.
Cody Hofhine: Taking a bullet for the team.
Pete: And so I am actually-
Cody Hofhine: There you go. Exactly.
Pete: I love it.
Cody Hofhine: Exactly. So yeah, we were just getting so many calls, so many opportunities that we felt that we were missing out on that one of us had to be boots on the ground. So I’ve been doing that since October.
Cody Hofhine: And it’s been really, really good. I know there’s certain contexts, certain deals, certain people that we would have missed out on unless I would have been out there doing it. But yeah, so as of right now, but the goal is very soon in the near future to have both of us out there being busy enough and active enough where we’re both out there locking down deals every single day.
Pete: Okay. So here’s a question I have and I get this question all the time. The seriousness behind the matter is this, a lot of times it’s usually the boats are usually the only ships that sail. Because usually partnerships don’t sail. How is it that you guys are able to connect and make this partnership work? Miguel, what are some of the things that you contribute? Yeah, you may be at the nine to five at that marketing company and Pete’s out doing boots on the ground, but how is it that you guys are able to contribute to each other and help each other so that this seems pretty equal and this partnership continues to sail?
Miguel: Oh well it all started when we were playing ping pong and I saw this serve as pretty solid. That was it. No, but seriously I, one of the major keys to us being successful as partners is our like-mindedness. And I was at the company before he actually came in and when he came onto our team I noticed that he was pretty skilled at selling. And I thought this guy he’s pretty good. We have a similar style, how we talked to clients and all that stuff. So once we talked about our goals and what we’ve wanted to do with real estate, it just made sense. It was a weird just trust Pete and I guess vice versa and it hasn’t failed us since. We’ve put in the same amount of effort mentally, physically. We always have the same mindset. So it’s pretty much just going off of instinct. It’s been a blessing because a lot of partnerships do go sour real quick but we have been able to stay on the same path.
Cody Hofhine: Perfect. So it sounds like the biggest contributor to the success of a partnership is just being on that same page, having those mindsets the same, does that sound right?
Pete: Yeah., and keeping each other accountable for sure. Because in the early days, we’d get up early at 5:00 AM and go put out bandit signs or put notes on abandoned properties or write down addresses and I can guarantee you some of those mornings I probably wouldn’t have gotten up unless less Miguel was knocking on my door telling me to come out there, if I was meeting them at my truck to get out there and go get it. So I think the accountability portion of it really, really helped in the very beginning and it still does right now. But definitely when we first got started that was huge.
Cody Hofhine: So huge. That’s why people pay for mentors. That’s why people pay for programs of getting healthy. It’s like, Hey, I’m going to pay a program because I want something to hold me accountable. So 100% agree with you. A partnership can bring some good stuff as well. I know there’s a lot of negative out there with partnerships, but for those that get it is because it’s the accountability. You guys set goals and you hold each other to it. And if you haven’t done it, you get on each other. And say, Hey man, you said you’re going to do this. So I can see a 100% how a partnership can work in this. Because wholesaling, even though the principles and the process are simple, it still takes a lot of action and it takes a lot of grit to get through this. Would you agree?
Miguel: Oh yeah.
Pete: 100%. 100%. Sure.
Cody Hofhine: Perfect. So let’s do this; let’s deep dive. Let’s get into the meat and potatoes and help our listeners help Rhino Nation understand what is it, one simple concept, that we can do to better ourselves in our wholesaling? And for the newbies out there that really have never whole sold before, they’re just grasping the concept of wholesaling, how they can learn a golden nugget instantly so that when they start doing this stuff, they learn instantly? Like, “Hey, I have loved what Miguel and Pete did and because of that I will make sure I always do this”.
So let’s deep dive this deal. And I’m telling you, Rhino Nation, get ready. Get a pad of paper and get a pen. Because I want you to write a few things that are going to be touched on right here that I absolutely love that made the success of three specific deals, how it all came to be. So let’s go, you guys lead it. How you guys started, what it looks like for marketing, what the phone calls sounded like. Let’s deep dive and if it feels like we’re missing gaps, I’ll stop you and we’ll deep dive even further. So let’s go for it.
Miguel: All right, cool. So a couple of things really just to give a couple pieces of advice. In the beginning, when we first started, our main objective was, like Cody said, just imperfect action. We were really willing to mess up and fail. We had no clue what we were doing. We talked to people, got bits and pieces of advice here and there. We really were just willing to fail forward. We started off doing little things, like Pete said, getting up real early, putting up bandit signs, going to abandoned homes, getting those addresses and trying to get in touch with as many people as possible that we knew were doing some sort of investing in real estate. So it was consistency. Even if we were wrong, just consistency and willingness to fail forward and have that imperfect action.
Pete: Yeah, and just anytime we got the phone to ring, we were excited because we were in sales and marketing, we were on the phone and we just knew if that phone’s ringing, something positive will come from that. It may be five, six, 10 different calls before you get something, but with each day we would just get a little more comfortable in what we were looking for, who was going to call it. The big thing was is when I would talk to my friend that got me started, he would say, “You’ll know a motivated seller when you get one on the phone”.
So our first five, six calls were just people kind of kicking tires or wanted market value or whatever. But then when we got a call where someone said, “Hey, I don’t literally just, I don’t want to deal with this anymore. I want to get out of here”, didn’t bring up price, just wanted us to come and look at the home, that’s when we knew that we had something going on and that was exciting. So we didn’t put any … we weren’t emotional with it. We didn’t have our feelings involved. No feelings got hurt when we got sifted through all kind of the junk calls. But we knew as-
Cody Hofhine: So Pete, tell me this, as you’re talking, you said there was like the motivation, you can hear it, you know, like your friend says, you know, and I 100% agree. What was it about this call? Like he says, “I didn’t want this home”, but did he go into any more depth or did you ask him any further questions of why he didn’t want the home and what did that sound like?
Pete: The first one was really he just blurted out a price and said, “I don’t want to deal with it anymore. If you buy this for $50,000, you can take it right now.” And just just hearing that and hearing your price, because the other people you talk to you, they say, “I don’t know, you give me a price first” or they’re kind of playing hardball. But when you pick up the phone and say hello, you know, how are you doing today? Or Hey, this is Peter. And it’s the first thing they blurred out his price and say they don’t want to deal and meet me right now. That’s pretty motivated.
Cody Hofhine: Okay.
Pete: So I was just like, all right. And I got … went over there right away and just walked the property with them and started talking about a few things. And then nowadays when we get calls, we get a lot more calls now because of our marketing and everything. Some people would just kind of spill their guts. They’ll just start to tell you right away, “Hey, are you serious? Will you really purchased my home? Will you … can you buy it within a week?” They’ll just-
Cody Hofhine: Sure.
Pete: As soon as you get that on the line, you just get a feel for it right away that these guys are ready to go. I need to take this seriously. I need to get over there as soon as possible and meet them in person.
Cody Hofhine: Perfect. So with this bandit sign, that’s what we’re talking about, right? Is this the deal we’re talking about? So with a bandit sign he calls in off this bandit sign. Where did you post this bandit sign? How is it that he saw your sign? Is there any keys to that?
Pete: Almost in a … so we’d been posting them just off of advice we got from different people in different investment meetings, just places where … intersections where there’s a lot of traffic, where a lot of people will be still not just flying right by it, where it’s going to get a lot of eyes on it consistently. This one actually, of all places, we placed on a busy road, but we placed it right on his property line, where his property ended and then it was just abandoned, just overgrown weeds and everything like that. It was just city property. We just placed it right there and it was technically, it was pretty much if you walk in his front yard looking back on it, it was right there. So he must’ve walked out front. He had just gotten kicked some renters and everything and I think he was done with it.
So our sign, I just imagine him walking out the front door and seeing that sign and being like, “Oh perfect”. You know? But yeah, he called us and he was one person that through others, a little bit of a language barrier, but he was saying that he wanted X amount and it was was really high. But I still went over there and because at this point we were hungry. We’d go see anything and everything just to meet people and just to get comfortable with the process. But that one, that one honestly took about two months of back and forth. I would reach out to him a couple times a week and say, Hey, I’m still interested. I can’t do it for that much, but let’s work on it. To the point where we thought it was dead, kind of dead in the water.
And then one day he called us back and he was $20,000 cheaper than where he started. And we knew at that point some of the buyers and some of the people we had been in contact with that they would purchase it off us and it would be a deal at that point. So it worked. We always look back on that one and kind of laugh about it because we thought that one was over with. And it just, from the very beginning, it showed us no deal is ever dead unless somebody else takes it or the people decide to stay in it,. It’s always still there is a chance on it for sure.
Cody Hofhine: Okay. So Rhino Nation, first golden nugget to write down is the power of followup. I can’t stress this enough. They nailed it. It got to the point where they actually thought to themselves like, this deal is dead. We are done working this. It’s going nowhere. It’s pointless. The guy’s asking way too high. But then something turned on. It’s time. Time keeps going on. And then he realizes, “I still hate this home and I don’t want it anymore”. So here’s the best part that you’ll learn is people are willing to trade some of their equity for you to come in and solve their problems. And so here we have a perfect solution where he’s thinking upfront, yes, I’d like this price. It didn’t work out. And then him coming to a realization that, “I’ve got Pete and Miguel on the other end that’s willing to buy my home. They can’t pay the price I want.
You know what though? This is a huge problem. It’s a huge burden to me. I don’t want it anymore.” And ultimately, he was willing to sacrifice, or give up, his equity, some of his equity in return for Pete and Miguel to solve his problem. And that is the key thing here. It’s a win-win every single time. At no given point would Pete and Miguel go over there and just do a deal that’s a win for them and a complete loss to the seller. No way. This is a win-win every time, where you’re helping solve these problems out there, you’re being the solution to be to solve these guys’ problems. And this is the case right here. It’s perfect. So you guys literally almost gave up and here it came two months down the road and you get this deal.
Miguel: Yeah, I actually remember I was the one that actually almost gave up and I was telling Pete, I was like, Hey, listen, this sounds like we’re just beating a dead horse here and let’s just move on. We’re going to get plenty more deals. We’re ramping up marketing. And he would just be like, “Listen, I don’t know what it is. I just have a feeling this guy really wants to work with us.” And it’s funny because first call he might not have sounded super, super motivated, but the fact that he would call us randomly, random times and just say, he would call us in and say, “Hey Pete”, or, “Hey Miguel.” And then he would throw out a lower, a slightly low number again, almost like he was, he was begging us to take the house but at the price that he wanted.
And we had set a price initially. And what’s funny is that the initial price that we set, we actually ended up getting it lower than the initial price that we gave him because we realized he was so motivated that we had the control, which he’d given us after giving us a couple of clues, calling us randomly. We just put two and two together and we’re like, this guy really wants to get rid of his home and we’re just going to let him come to us. So that’s probably pretty much what happened.
Cody Hofhine: Cool. So what did this one deal, when you sell this deal, what does that look like on a profit standpoint? Is that one of like the average? Is that like a $10K assignment or what does that look like?
Pete: That one was a little bit lower than $10K just because the house was really, really rough. That one was probably closer to $8,000 but then he … while I was over at the house one day-
Cody Hofhine: This is where I feel like saying, wait, wait, wait, wait, wait, but there’s more. If you buy today-
Cody Hofhine: I will throw in. So let’s hear this because guys, this is the second golden nugget I want you to write down. If you’re listening and paying attention, unless you’re driving, I want this written down so you can see how important this is. What goes on right here. All right, go for it.
Pete: Yeah, I was at the house with him and by then and I’d met with him at the place two or three times and gone over things and checked it out myself. We were over there one day and I just was talking to him just kind of building rapport and he was a really nice guy and I just nonchalantly asked him, it clicked in my head, I was like, you know what, you never know and you, you haven’t asked him. I said, Hey, by the way, do you have any other places? And he, without blinking, without stopping, didn’t change his tone or anything, he was like, “Yeah I have another home and it’s about two or three miles down the road and I’d like to sell that one as well. And it was crazy because it’s like he never would have even brought it up.
I don’t know, unless I would have asked. So he had this place, I was already working with him, we built a rapport, but he still, for one reason or another, didn’t bring it up. So as soon as we left his, that first property, that day we went over to that one. I signed it, got an under contract. This was a nice two story, brick home, didn’t need that much done to it. At all, really, maybe just some cosmetic things, but the fact of he wanted to move, he wanted to sell, he wanted to liquidate quickly, we were able to sell that one. And on that one we actually had a profit of about $17,000.
Cody Hofhine: Holy smokes. There you go. So the power of asking, you’re already there with the guys. You’re already there with the seller, you’ve established that relationship of trust. People do business with people they trust. It didn’t happen over one phone call with this gentleman. It happened over two months. But that’s okay because it got him the first home at, did you say $7,000 or 8,000?
Pete: Yeah, about $8,000. Yep.
Cody Hofhine: Okay. And then him asking, “Hey, do you know of anyone else or do you have another home that you like sell?” “Absolutely. It’s a mile down the road and here we go. And this one’s a little bit bigger. A little bit better shape”, to where you made, did you say $17,000?
Pete: Yep. $17,000.
Cody Hofhine: Okay. In between, hold on, we’re going to ring what’s very, very common on the podcast, the victory bell. Hold on one sec. Okay. So we got two deals going on. First deal, $7,000 or $8,000. Second deal, $17,000. And here you are probably just happy as can be. You can’t believe how easy the second one came in because now he’s that much more willing to do business again with the person that he trusts. And where did that lead to from there?
Pete: That led to him when, we were finishing up on the second house, another time when I went out there, he handed me a little piece of paper and it had a name and an address on it and a phone number. And I was like, what is this? He said, “It’s my friend. He said he wants to sell his home too and it’s in the same neighborhood.” And I was like, you’ve got to be kidding me. You know? So believe me, after that I asked him every time I saw him or spoke to him, if he had any more homes, if he was sure if he had anything else for sale or if he had any other friends.
To the point where he would just laugh every time. He was like, “No, no, no, no. I promise this is it. I, don’t have anything else.” But yeah, we did the deal on that one. We closed that one right before the end of the year. And actually from that we had another referral as well, where something, we don’t have it under contract yet, we still have to go out and see it, but from that group, from that family, they told us that their friend has a place that they want to sell as well.
Cody Hofhine: Holy smokes. So what did the third deal do for you?
Pete: That one was right at the $10,000 mark as well. Maybe a little bit over that, maybe $10,500.
Cody Hofhine: This is-
Pete: But yeah, right at that mark.
Cody Hofhine: This is awesome. We’re talking $35,000 in three days and just back to back to back. And probably the easiest way to do it. And that’s through referral. How many of us, I’m guilty of this, we’re all guilty of this. How many of us take the time to actually ask for referrals to ask for, Hey, do you have any other homes that you’re looking to sell? Do you know anyone else that’s looking to sell, that need to sell quick? This is such a like, Holy smokes, slap you in the forehead, just so easy.
It’s so easy that it’s almost that easy not to do it. It’s so easy to do, but how many people are really going to do it? You did it to where three deals came from the one source and that’s brilliant. Absolutely brilliant. You guys, I’m telling you yet another way of how to think outside the box. Differentiate yourself from the other investors out there and put down three homes off one source. Absolutely amazing. Guys, congratulations.
Pete: Thanks, man. We appreciate it.
Cody Hofhine: So tell us this, in winding down and wrapping up, what helps your mindset be the way it is? If you guys could give each a book, what is that number one book where you’re like, this is my go to that helps me be where I need to be?
Miguel: Honestly, I have three in mind right now that I can think of.
Pete: Huge one for me is what you guys talk about all the time. And I’m probably even going to butcher the title right now, but it’s the Four Spiritual Laws-
Cody Hofhine: Of Prosperity.
Pete: Of Prosperity. There you go.
Cody Hofhine: That’s it.
Pete: I love that book. Man, I read that front to back multiple times. And it’s, it’s the mindset of don’t limit yourself. There’s, some of this stuff can be a little intimidating, some of it can be scary, just because sometimes it’s big money thrown out there and you’re like, Hey, I don’t, I’m new at this. I don’t know, really know what’s going on. But if you, just the mindset of even just failing forward and just going for it and say, Hey, it’s going to work. I’m going to make it happen or I’m going to do everything I can to make that happen. That sounds very simplistic. But when you’re dealing with people, these people are calling you and you’ve never met him before and within a very short time, you have a deal under contract to purchase their home. So with that you have to have the mindset of prosperity, of just being, Hey, I’m going to get the deal done, I’m going to make it happen and this is something I want to do for a long time. But definitely that book is a huge book that I would recommend to anybody.
Cody Hofhine: Perfect.
Miguel: I was going to say Think and Grow Rich for me.
Cody Hofhine: Think and Grow Rich. Napoleon Hill.
Miguel: Yep. Napoleon Hill. That’s definitely a solid one. Just adding to what Pete said. Basically, one part of our like-mindedness is that we do visualize separately and together. Sometimes we’ll just get together and talk about the business and we’ll start visualizing and talking about our future as if it’s already happening, And that in the beginning helped us stay motivated. We would talk about deals that we were going to get before we even knew how to get them. We’d be in the car driving around not knowing what we were doing, talking about being swamped with phone calls and being swamped with deals. And that really helped us stay motivated and visualize where we were headed.
Cody Hofhine: Perfect. Guys, you guys are rock stars. You guys are just at the beginning. You’re just scratching the surface. 2017 looks bright for you guys and I’m excited along this year, along this way, that we’ll be touching base here and there and I’m excited to hear the success of what you’re going to have here in 2017, so keep pushing forward. I appreciate your time and thanks for joining us on the podcast today.
Pete: Yeah, awesome man. Thanks. Good. Will you ring the bell for us one more time because that’s one of the things we always said is if you’d get on the podcast we got to get one specific bell ring?
Cody Hofhine: All right, here we go. You ready? Victory bell-
Pete: Number two.
Cody Hofhine: Number two.
Miguel: All right, awesome.
Cody Hofhine: You are the first-
Pete: Appreciate it.
Cody Hofhine: I’ve done the double for, so thanks for asking. Okay.
Pete: Awesome man.
Miguel: Thank you.
Cody Hofhine: Rhino Nation, if you have any further questions about wholesaling, there’s so many ways to learn about this, but definitely go over to InvestorGrit.com. That’s Investor G-R-I-T.com. And if you’re not, if you’re new to this podcast and you’re just listening for the first time, get over there and get on our email list, subscribe to it. We send out gold nuggets often through that email list. And then also if you want to hear what other wholesalers do nationwide, click on the testimonials tab and you can see people nationwide that are doing wholesaling and just crushing it in their market. If you want us to help you personally build your wholesaling business for 2017, click on the coaching tab, book a call with our team and if we like what you have to say, we just might invite you to be part of the tribe. Take care Rhino Nation and we’ll talk to you soon.