Nobody achieves success without first experiencing failure. That could mean anything from temporary setbacks to deals falling through or having difficulty finding leads. However, today’s guests—Joel Valdiviez and Joe Matta—have learned to overcome those obstacles and have been consistently learning about the nitty-gritty parts of wholesaling as a business for the past five months. And now, they have $200,000 worth of deals and more in their pipeline!
In this episode, Joel and Joe will walk us through their business journey and how they approach deals in a way that allows prospects to trust them. They will then give a quick breakdown of one of their biggest deals, which had a gross profit of $65,000.
Tune in to find out more!
How Two Newbies Closed Over $200k In Wholesaling Fees In Their First 6 Months With Joel Valdiviez And Joe Matta
I want you to imagine that for the next days, months, you start taking action towards your real estate dreams and goals. Every single day, you are learning a little bit more, surrounding yourself with successful real estate agents, picking up the phone or going to the doors of distressed property owners and asking them if they would consider an offer, thinking and dreaming about it, and driving around. It’s always in your mind, putting together a real wholesale deal that pays you. After 150 days of working, keeping your mindset strong, and making sure that you are staying consistent, you finally close your first deal and get that verification.
All that faith that you have in yourself and in this process in finding discounted properties has finally paid off that. You finally passed across that bridge from faith to it becoming a fact but it took you 150 days. That’s five months of consistently taking action and stoking the fire of your passion for being a real estate entrepreneur with nothing to show for it. After those 150 days, all of a sudden, things start to grow and snowball. Seven months later, after that first 150 days, you have done $200,000 worth of deals.
That is the story of the two gentlemen that I’m going to be introducing you to that do business in the High Desert of California. They live in the LA Orange County area. It is my pleasure to bring on two 29-year-old phenoms, Joel Valdiviez and Joe Matta. How are you doing? What an incredible story of perseverance and sticking to it. 150 days, 5 months, you put some deals under contract a little bit high, you were learning through experience and finally, you broke through. Tell us about that process.
I started researching wholesaling and started in October 2020. It was me and my son’s mom. We watched your videos, did your course, learned the script, and started taking action right away. I remember I was scared. I had saved up some money as a real estate agent and put it in to start this business. As a real estate agent, you don’t spend much money on marketing.
I have to spend money on marketing now, trying to figure it out, and locking up deals too high. Something finally hit for us. It was through an SMS campaign. We’ve got that one closed. That one took months to close, unfortunately. We locked up deals after that and closed the ones before that. It took us five months to get our first contract signed and sold.
During that time, what was going through your head, Joel? Honestly, that’s 150 days. You are there working with your son’s mother, Leslie. You are going through this, putting all these great things in your brain, and taking action on them. What keeps you going through that? What were you doing to pay your bills during these five months?
I had saved up some money, about $30,000, and used that to run my marketing. Joe came in along the way. He started helping me with paying for the marketing as well. Eventually, we became official business partners. We have been best friends for years. I had used that money that I saved up and honestly, I ran out of money. I had no money at all. I had to borrow money from that deal and Leslie is part of the money to help keep the business going.
Failing is not an option.
Failing is not an option for me. When I started this company, I said, “I’m making a seven-figure company and it is what it is. I’m not going to fail.” My personal income in 2021 is $400,000. Anytime that I start to waver from that goal, I look at I. It’s written on my wall, and circle it. Every time I circle it, that was a time of serious doubt when I felt like giving up. I shift my focus from giving up to, “What can I do to go out there and generate business?” For me, I’m not stopping until I get what I want.
What kept you going was looking at that goal, reconfirming and re-approving that, “This is what I’m going to do. I’m going to do this and whatever it takes to find a way to provide $400,000 worth of value and service to my community to equal that in my income.” That’s the simple equation. If you want to make $1 million, provide $1 million worth of value. You want to make $400,000, make sure that you do that. It takes time to build that up a pipeline of opportunities to be able to do that.
That’s what you did for your first five months. That was a big hunting season for you and always is. That’s building up your pipeline. Everybody needs to know that it takes time. Some of the best wholesalers that I know around the country, their average to do their first deal is six months. I see it closer to 90 days for everybody but some of the best ones I have seen are six months. You are right there and it’s building up that pipeline. Once it’s built up, it’s rock and roll time. Joe, talk to me about you. What’s your background? How did you get into this crazy world called wholesaling real estate?
I went to grad school and got my Doctorate of Pharmacy. I was supposed to become a pharmacist. During that time, Joel and I were living together during my third year of grad school. He got into wholesaling a little bit and started learning about it. By the time I was graduating, he, started getting his bearings and was talking to me about opening up a company. I told him that I would hop on with him whenever he was ready. About three months out of graduating, I was working at a medical device company and it wasn’t for me. I knew I had to jump in with both feet and not be one toe in, the rest out.
At that point, I decided, “I’m quitting. I’m going to put everything I have, all my time, effort and money into wholesaling. I’m going to go and jump in with Joel.” As soon as we jumped in, Joel did a great job of laying the foundation. What I brought on was operational standpoints on how to start scaling that out. We balance each other out from that perspective. When I came on, as Joel said, it was a bit of a struggle in the beginning because we were getting some feels locked up but they were at too high of a price point.
However, after a little bit of practice, talking to other people, networking, and learning from people like yourself, we were able to start figuring out formulas that worked in our areas that allowed us to lock up prices at where they were supposed to be and used that to get strong assignments on the backend. After the time that we had been building it up, we’ve got to the point where it’s starting to become a lot more fluid and natural. We are starting to see success at a high level. It’s exciting for us.
In those five months, for everybody that’s going through that, what do you think was the toughest part? A lot of times, it’s understanding is this a deal or not a deal? It’s important to understand how to value properties, what to offer on properties and estimate the costs. Is it consistency? I hear that a lot, “I know it’s in my schedule to work on this business but I end up not doing it. The responsibilities in my life take over.” It’s a scheduling thing, time management thing, a deal or no deal thing, or, “I don’t know how to do the comps.” What do you think in that first five months was your biggest hurdle to get over? How did you get over it?
I will tell you one minor thing that can become large and something else that affects us as well. One is getting too attached to deals. A lot of people, when they get their first couple of light bites, they are excited like, “I finally got one, this and that we need to sell, and make it work.” You can try, waste all your time and energy being attached to one deal or understand that there’s a lot more efficiency. Go out there and get them. With us, because we were new, we had put all our time, money, and all of that into that, it was a bit of a scary time so we were attached.
That is what caught us on a lot of snags early on. Once we realized that it wasn’t going to be a real issue and that there was way more deals out there for us to get, that’s when things became a lot easier for us. At that point, the confidence level was shooting a lot higher. Earlier on, you were scared to lose something and now, it’s not about losing. It’s about getting the next one. Once we shifted that perspective and mindset, we were able to overcome that hurdle. That’s what I would say is something that seemed minuscule but can blow up into big things.
On top of that, the other big thing, it’s something that you spoke about before was not knowing your area and therefore locking up things at too high of a value. Once you move into a specific area, it is integral that you do your research. You have to know what things and ARV look like over there, and what price you need to lock it up to make it make sense for investors. A lot of things come into play for them. In different areas, a lot of things are factored in.
For us, we had to make sure that it was something that we were keeping in mind, especially because working in the High Desert, the price points and renovations are a lot lower. In LA, the price point and the renovation are going to be way higher. You must keep that in mind when you are deciphering certain things. We were struggling with it in the beginning. Once we figured that out, we were able to overcome all those issues.
It was comping and knowing what to offer. We brainstorm all the time to make our business better. We try to get better every week. We had to go back and rewatch your course. You say in there the 0.66%. We found that it works extremely well. Sometimes there’s a little deviation but it works very well. When we started implementing that into our business, we started locking up more deals that we were able to assign.
There are a couple of things to unpack there. They are very common. Joe, what you were saying is pre-qualifying those leads. If somebody is nice to us, not yelling at us, doesn’t have an angry tone or hanging up on us right away, we feel like, “I’m building rapport here. I’m having a good conversation here. This is what they all talked about. This is where we break through.” You took enough swings of the plate that you find somebody that you are going to be able to do business with.
You jump into it and are like, “I’ve got this lead. I’m so happy to have this lead.” As you start having more conversations and pre-qualifying them, remember that we pre-qualify every single property owner based on four things. It’s the condition of the property, timeline to sell that property, their motivation or what is the problem that they have, and their price. You need to get that out of every single seller so that you know if they are willing to do business with you. From there, you can start doing your lead follow-up and offer presentations.
If you think that everybody that’s nice and kind to you is a lead, you are going to end up with a lot of leads that are never going to do business with you because they either don’t want to sell, their timeline is too long or the conditions are too nice. It clogs up your thought of, “I’ve got so many leads,” that it hides the best leads. That’s what you are talking about. It’s getting in there, finding those best leads, and converting those over time into signed agreements. It’s important that you do that and pre-qualify every single property every single time.
You can try, waste all your time and energy being attached to one deal or understand that there’s a lot more efficiency. Go out there and get them.
In getting values and understanding values, Joel mentioned 0.66%. For the readers, if a property is over $250,000 on Zillow, you put the address into Google and on Zillow, it’s $250,000 and above, if you are at 66% of that price, you are in a good spot depending on the condition. If it’s burned down or something terrible, it’s different but at 66%, it’s going to be pretty close. That’s phenomenal.
You built up a pipeline of leads. It’s starting to feed you. You are starting to grow your company. Let me ask you this. Let’s put this wholesale thing to one side because wholesaling is the foundation of being a real estate entrepreneur and finding discounted properties. Let’s get everybody and ourselves excited about this. What’s the big goal? Are you like, “I want to be the cashflow company that we own a bunch of properties, whether they be Airbnb, rental portfolio or whatever else?”
Are you like, “We want to do amazing fix and flips, and change the face of our communities that we are working on, and bring up values and pride to the community?” Are you thinking, “We want to build your own properties and develop or this is what I like,” and you can talk to me about it, being the bank, lending out your money, and getting a nice return? What’s the big goal before we break down a deal and get nitty-gritty?
We haven’t talked about that. We have talked about how we want to scale our company. When I was in the gym, I was like, “I want to make a hedge fund. That’s what I’m going to do.” We can talk about scaling.
I will tell you from my perspective and how I feel that we can impact things on our side and how we can scale it out. We see this as a gateway to open up multiple doors. We do not want to be limited by any stretch. I know we have talked about Airbnbs before, and we want to do that but we want to go to the fix and flip game as well. What we want to do is scale the company to where it has multiple facets that we can use and leverage to not only garner income but to continually build that out and help other people enter in as well and gain the knowledge that we have gained.
A lot of people, when they go into wholesaling, it’s a competitive marketplace regardless but there’s so much room for everybody to succeed if you put your mind to it and you are working at it. The way Joel and I have always looked at things is if you put out good, good things are going to come back to you. The way we try to work with our partners and employees is, ultimately, we want to empower them because we know that’s going to come back to us five times as much. If you give people the tools, they are going to want to put the same back towards you and help you get to where you want to be.
For me, it’s not just the Airbnbs and the fix and flips. It’s to gain that money and start leveraging it for multiple other things as well for us to start entering other types of markets and fields and see where that takes us. Joel and I have even talked about a wholesaling app that we are going to work on hopefully very soon that we think is going to be lucrative and effective for both investors and sellers. It’s cool. We are excited about it.
Let’s break down any deal you want. I’m going to ask you how you found it. If it was a list or marketing, what’s going on? What you made about it and the situation of the seller? What’s the deal that you want to break down?
Joel did pretty much all the work on this one. It’s an amazing one.
This one was in Apple Valley, California, where I was born. I was out at the gym and my parents called me and said, “We found this house. It looks like something that you might like.” I’ve got an off-site eval because that’s what I like to eat. I went out there and checked out the house. It was a bank-owned property, I found out. I don’t think we can sell those. I still got to learn that. I don’t know everything. I said, “I’m in the area. Why don’t I go driving for dollars?” I turned on my DealMachine app and drove 2 miles up the road. I found this one property and had a good gut feeling about it.
I put it in DealMachine, kept driving around, and went home. Next week, I skipped traced it on Batch and called them through my dialer. I had to call the seller eight different times before I’ve finally got ahold of her. That’s something that I would tell everyone. You’ve got to call it more than once because they are not always going to answer the first time. They’ve got lives.
I called her and finally got ahold of her. She said, “I am thinking about selling. I want to sell in about four months. I’m going through a lot. My daughter is in the hospital. She might pass away. Once that’s taken care of, she either gets home and recovers or passes away. I don’t have a better idea of what I want to do.”
I made her a verbal offer over the phone and said, “Why don’t we do this? I know you are going through a lot.” One of the reasons why people love working with us is because we work around your schedule, “It sounds like you are going to need four months. What if we could make escrow four months long? Is that something that you think you would want to do if we could lock in the price for you?” She’s like, “I would be interested in that. Why don’t you come over?”
She invited me over. I go to the property. There are rat feces on the floor and cobwebs everywhere. She had a bad hip so she couldn’t walk and had a walker. She’s an old lady that couldn’t take care of the house. She lived there. Her story is sad because her son had previously passed away. He had a stroke in the house. She was telling me about that. She was going through a lot. Her daughter had cirrhosis of the liver and she caught COVID. She was in the hospital.
Don’t be afraid to invest in yourself.
We were talking and I have the contract with me. Before I go on an appointment, I have a few questions that I ask them to pre-qualify them and see if they are serious and going to sign or not. Based on what she was telling me she sounded that she was going to sign. She didn’t say yes but she told me yes without saying yes. I had the contract and took it out and she’s like, “Are you going to have me sign that thing now?” I was like, “That’s why I came out here.”
I said, “Unfortunately, the house was bad. I’m going to have to offer you $200,000 after I see it because I don’t know if we are going to be able to get this one done.” She said, “That’s what I was thinking it was worth, too.” We kept talking and building a strong rapport. By the end of the conversation, she was like, “Am I going to sign that thing or not?” She basically closed herself. I didn’t have to close her. We signed it.
The next day, I sent it out to my cash buyers list. It’s the fastest we have ever sold a deal. My phone was blowing up. It was sold in ten minutes. Someone offered me and I couldn’t believe it. I thought we were going to make about $25,000 on it. That’s why I wanted to get it at $200,000 to assign it at $225,000. Joe told me to put it out at $245,000 and got a few offers. I’ve got an offer from a big company. They flip a lot of houses.
Someone else hit me up at the very last second. They offered me $265,000. I was talking to this other investor and said, “I did get this offer for $265,000. I want to go with that.” She’s like, “What if we could match that offer? Would you go with us? There’s no negotiating, just getting the deal closed.” I said, “We can do that.” I really liked her. She was cool. We’ve got it at $265,000. They came back and said, “We can do it.” We assigned it for $65,000. It did take four months to close. There were a few hurdles in escrow. She had a loan that popped up that she didn’t know if she had paid off or not from years ago. We had to get that cleared with the title.
That pushed our escrow back an additional twenty days but it was honestly, overall a very smooth transaction. She was happy with our service. She said, “I’m an old lady. I’m 80-something years old. People take advantage of me. They are not very respectful to me because they think that I’m dumb. I liked that you talked to me like a human. You are respectful and have great communication. I appreciate that you were able to help me out of the situation.”
Her daughter did, unfortunately, end up passing away during escrow. She’s like, “I’m going through a lot. I appreciate that you were able to do this for me. You were so professional and kind. You are great.” That’s something that we pride ourselves on. People always ask us, “It’s so competitive in LA and Southern California.” It is, but if you are professional and go above and beyond for your clients, they are going to see the difference. You are going to win the competition every time because they can see the difference. That’s something we pride ourselves on, having empathy and making a human connection with our clients.
You’ve got it for $200,000 and sold it for $265,000. That’s $65,000. That’s incredible. It’s interesting when you break this down. If we were a fly on the wall during the transaction and looking at the situation that you were helping her with, it’s extremely emotional. A lot is going on. There’s death mixed in with, she needs to live somewhere else that’s going to be in a healthy situation. She was probably embarrassed to have anybody, a lot of people go through the house and put it on the market or anything like that.
A cash offer is a perfect situation to make it as smooth as possible and not add more stress into that situation. That’s what we do. Those are the problems that we solve. Real estate agents aren’t going to help her out. Fix and flippers aren’t going to go directly to this property owner, help her out, hold her hand, and walk her through all this. That’s why we get paid the amount that we get paid. We get paid the amount of value that we provide. $65,000 is a massive deal.
The $50,000 Club, I talk about it all the time. I push all of the TTP coaching students to push to get a $50,000 deal as quickly and as often as possible because it helps set up. It helps give you breathing room in your company and shows how much value you can provide to the community out there. It’s incredible. You should be wildly proud of that.
I’m sure it has gone to good use as you are investing that $65,000 into the company, growing it, and hopefully, investing into yourself. I’m sure you are. Give some words of wisdom to people who are finding this for the first time. Time travel a little bit and go back in your mind. What were you thinking when you first heard about wholesaling and doing it? What advice would you give to somebody starting as to how to be successful as quickly as possible?
When I first heard about wholesaling, it sounded too good to be true. It’s like, “How’s that possible?” After I heard that, I went and became a real estate agent. I did that whole thing and didn’t like it. I have very big goals for myself. We both do. I was like, “I’m not getting like the financial income from being a realtor. There’s no speed there. I need speed and get to where I need to get to as fast as possible.” I started looking at wholesaling again and started understanding wholesaling. Honestly, for me, it’s so much fun. I don’t feel like I have a job.
I always joke with people like, “I don’t have a job. I’m unemployed, even though I own a company.” It’s because I love what I do. It’s exactly what you said. We are solving complex problems for people. When you are a realtor and you talk to realtors, most of them don’t even know about wholesaling. They cannot solve these types of problems. I know because I was one of them. When these types of problems arise, it’s like, “What do I do? I don’t know what to do.” That’s when we come and step in. We are providing solutions for people.
To touch on that as well, anybody who’s entering into wholesaling, I cannot stress this enough, don’t think that it’s going to come super quickly for everybody. It does take a little bit of time. When you start getting it going and have the funds to start investing in yourself and your company, it snowballs in a very big way. If you continue to stay consistent with that, continue to work on it, push that agenda, and not worry about the income that’s coming immediately but reinvesting and putting that into the long-term effects, it pays off in big ways.
I will always say, “Invest in yourself,” meaning don’t be afraid to spend a little bit of money on courses and learn from people who have done this for a long time because you will avoid a lot of the pitfalls that a lot of people have fallen into, even us. In the beginning, even though we watched courses and did a lot of those things, some of the stuff we were like, “We think we’ve got the hang of it.” We went out there and did it without doing as much research as we could or should have. We lost the money because of it. Lessons are there to be learned. Don’t let it get you down. Keep pushing and you will get there. It will happen. It’s an amazing field to be in and a great way to build some equity in yourself.
The biggest thing for me is having a very strong morning routine. I wake up every morning, meditate, pray and visualize myself getting that check. I want to make $350,000 on a deal one day. I envision myself doing that and driving to the appointment. I already know the seller. His name is John and he lives in West Adams, Los Angeles. It’s a development opportunity. I can already see it in my head. We are philanthropy-based. As part of the money that we make, we are going to be donating to philanthropic causes.
Have a very strong morning routine.
There’s this company that we are going to be working with called Prosperity Homes. They build homes for women and children in Mexico. Each house costs $10,000 to build. It’s a two-bedroom house. It’s got a kitchen and a little area for you to live in a loft. It’s awesome because they are living in tents. After I picture myself getting that check and doing all the fun things, I donate some of my money to help build a house. I take my son with me and I can see him handing the keys to the little boy in Mexico.
For me, it’s so much bigger. I can’t fail. I’ve got my mom, my dad, my sister, my son’s mom, and my son, Bayani. Having a strong morning routine, working out, reading books every day, watching content like yours, Jamil, all these other great guys out there, Pace Morby, and feeding your brain with goodness is how you keep going. It’s got to be bigger than you. You’ve got to have a huge why and it’s got to be bigger than you. It’s all I can say.
How do people get ahold of you? If they want to reach out, squad up with you in your local market or say congratulations and give you some love, how do people reach out?
You can find me on Instagram, @MattaOfFact. We have our YouTube channel that we started, Distressed to Blessed. If you want to hop on there and give us a follow or subscribe, we would like that and we look forward to connecting with everybody.
Joel and Joe, thank you so much for being on the show. You have an incredible story. It shows that if you push through that first 150 days, some excellent things are going to happen, especially in the first 90 days. Thank you so much for being on here. Keep crushing. I’m excited to see what you do over 2022. For everybody out there that is interested in joining the most proactive group in real estate investing, it is the TTP program and family.
Go to WholesalingInc.com/ttp, scroll down, check out what it’s all about, the testimonials, and the incredible wholesalers around the country that have been successful in the coaching program. If it feels good in your guts, sign up for a call. I look forward to working with you personally. Thank you so much for joining us. For everybody out there, I encourage you, as always, to go out there and talk to people. Until next time.
- Joel Valdiviez – LinkedIn
- Joe Matta – LinkedIn
- Prosperity Homes
- Jamil Damji – LinkedIn
- Pace Morby
- Instagram – Joel Valdiviez
- @JoelsGotTheKeys – TikTok
- @MattaOfFact – Instagram
- Distressed to Blessed – YouTube
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!