Epic Real Estate Investing - Epic Wholesaler Rashida Adekoya | Episode 114

Episode Date: July 28, 2014

Rashida Adekoya shares her experience and the "step-by-step" details of closing her first deal. Persistence pays, and Rashida proves it. ------------------------- Download Matt's free real estate investing course "How to Do Deals | No Money Required" at FreeRealEstateInvestingCourse.com or text FreeCourse to 55678 "Click" what interests you most:  Education Properties Income    Coaching Learn more about your ad choices. Visit megaphone.fm/adchoices

casting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. Hello, and welcome to another episode of Epic Real Estate Investing. This is your first time listening to the show. Welcome. Super glad that you're here.

This is the place where I show people how to escape the rat race by investing in real estate. And if I were to do it all over again, I do it exactly the same way. And I do it exactly the exact same way. the same way whether I had money and credit to work with or not. You see, while I was finding my way, I stumbled upon 12 different strategies of investing in real estate with little to no money. And in hindsight, you know, being forced to invest with little to no money or credit, basically I say little to no money. I had no money in the beginning. But I believe that position, it made me a better investor because it forced me to be creative. It forced me to use my brain. And I want to make you a better investor as well.

So I put the first two strategies, the two of which I believe are the easiest and fastest strategies to a paycheck. I've put them into a free course just for you and you can access that course at free real estate investing course. Or if you're listening on your smartphone and you can't wait to get home to your computer, I've got something new for you. You can download the course right there on your phone by texting free course to 55678. Free course, it's all one word, free course to 55678. And you'll get it right there on your phone. phone, the two easiest and fastest strategies to a paycheck in real estate. All righty.

So let's get into it. I've got an epic wholesaler on the phone who just closed a very sweet deal and I've invited her to the show to share the details with you. So let's get into it. Please welcome Rashida Atacoya to the show. Rashida, welcome to Epic Real Estate Investing. Thank you, Matt. Glad you could make it.

And thanks for your generosity and sharing your experience. Are you a full-time real estate investor or do you have a day job? I wasn't clear on that. I am in the process of the coming full time. This is my first deal, but I've been interested in investing for years now, but I finally pulled the trigger on this. That's awesome. So what are you doing during the day?

I am a transaction coordinator. Oh, okay. So you work for a real estate agent? Yes, it is. Perfect. Perfect. So what does your schedule look like as a transaction coordinator? I'm pretty fluid.

I would say part-time from 8 to 12, five days a week. All right. The reason I ask is because that's a big challenge for people and they have something else that they have to do to pay the bills in the meantime while they're becoming or making that transition. You know, they want to know how they can do it part time. So you have a part-time job and you're doing your investing part-time. Is that accurate? Right. And I also have two young children as well.

So they take up the other half of my day. Well, then you have a full-time job and you're doing real estate investing part-time. Got it. Right. Got it. So how did you first become interested in real estate? Oh, wow. I will have to say through my mother.

We and my grandfather wields some land over to my sister and I. This is years ago, and my mother came up with the idea of just, instead of just letting the land sit vacant, we decided to put a mobile home on the property, so at least if nothing else, it could just pay for the property taxes, so it wouldn't have to come out of our pocket. So she came up with that idea, and I helped her develop it, and bring it to reality.

And ever since then, that really has been the spark that I needed to gain momentum and learning more about real estate. And that was back in 2007. That was 2007. Okay. So an interesting time to get excited about real estate investing. Mm-hmm. Right before the crash. Right?

So here we are in 2014, seven years later. And you just closed your first deal. when would you say you actually got serious about doing deals? Good question. Probably two years ago. I'm in Chattanooga, Tennessee area right now. And I've lived here for almost years prior to that. I lived in West Palm Beach, Florida.

Okay. And I was a full-time real estate agent there. Mm-hmm. And I would say that was when I really got the true bug to really get more involved, heavily involved in real estate investing because all of the clients that I was, working with were mainly investors, particularly at that time in South Florida. Real estate was on a fire sale. I mean, you could buy condos 50 cents on the dollar.

So just working with all my investor clients really gave me the true interest to try to do it for myself. So we have a very, very similar beginning that because I was an agent as well and had investor clients. And I remember the exact moment. I've mentioned it here several times on the show when it really clicked for me. Was there a moment as an agent where it clicked, like, I don't want to be an agent anymore. I want to get on the other side of the desk. Yes. Working with a difficult customer really put the nail

in the head that a villager was really not the route I was interested in any longer. Super. So the market that you're in right, and let's go back just a little bit. So you got started probably about two years ago, right? Where you decided you're going to be an investor. Okay, perfect. And here we are two years later, and you just got your first deal. So what is your opinion of why it took so long for you to get this first deal completed? I think I'm the kind of person that's stuck

in the paralysis analysis mindset. I felt as I had to know everything about everything before I made a move. And I can't tell you how many books and courses and things that nature that I've bought and read seminars that I've gone to.

And after a while, I just got to the point where I have to pull the trigger. I just can't reading and watching other people do this. So based on your experience from this deal, after two years of listening to programs and going to seminars and reading books, what percentage of all that material did you actually apply to this deal? Oh, gosh.

I really can't give a specific percentage because pretty much would help me pull the trigger was just the information from your podcast. So, because in your podcast, you just laid it out straightforward, and it was just so easy to follow. But I will say that in a combination of everything that I've learned previously, it kind of just came to a head when listening to your podcast, all the things I learned in the past. You pretty much stated the same thing, but you laid it out a lot more clear than what I've read in the past. Got it. Got it. So what I was trying to get at, I didn't know you're going to give credit to the show, but thank you very much. What I was trying to get at was, you know, you can learn and consume tons and tons of information about real estate, but then when you actually do a deal, you draw on very little of the information that you were consuming.

Oh, yeah, yeah, that is correct, because it seems as if once I was in the throes of doing it, it just seemed to just flow. I remember even as a real estate agent, you know, you take the license, the test for the license. And, you know, once the test is over, I mean, you don't use anything that you learned off of that test as a real estate agent. And, you know, I find out that, or I've come to find that it's not exactly the same, but there are a lot of similarities as becoming a real estate investor. So super for finally pulling the trigger. And, you know, you had sent me in a video to which you filmed in front of you. of a house that you recently bought in Seoul, which I just thought was awesome. So let's walk through that process from beginning to end. I wasn't even aware that this was your first deal, so that

makes us a little more exciting. What lead generation activities do you practice and which one brought you this deal? Okay, right now, what I'm doing is looking through the newspaper at for sale by owner ad in the paper. Okay. I'm also, I also subscribe to this website called Homebuyers Network. Okay. So I get leads from there and then just networking at my local real estate investment association. So those are three major ways that I'm seeing leads, things of that nature. And which one of those three? I'm sorry, go ahead.

I was just going to say which one of those three brought you this deal? This particular deal was from the Homebuyers Network website that I subscribed. Got it. Perfect. So what do they do? You subscribe to that and then they send you leads via email? Yes. I subscribe to the county.

that I'm in because that's how you purchase your leads, whatever county that you're interested in getting leads from. Okay. So this particular county here in the Chattanooga area, I subscribe to that particular county, and this lead came in through the website, and I gave them a contact. The seller was interested in selling very fast because it was her mother's home, and the mother had just passed. Got it.

And the daughter was out of state. He didn't really want to deal with the up of the property. property, especially being out of state, so she just really wanted to get rid of it. Got it, got it. So in the email, how much information do they give you about the seller's situation? They provide the price that the seller is interested in selling for, what the potential market value of the property is, how many beds, bath, rare footage of the property, or how motivated the seller is.

There's different categories that they can choose, depending on their urgency. as well as of course the address of the property and believe that's it. Okay. All right. Does it, I wonder how Homebuyers Network gets their leads. Like, where did that seller go in and input their information? Do you have any idea about that? I know it's through the website that they have.

I believe if you Google sell my home fast, they're one of the top five websites that pops up. And I think it's just by people finding that particular website, get through their information and all of the leads for this particular county will be filtered to me. Got it. Okay. Awesome.

So you went ahead and you got the phone number and you called, right? I'm sorry, yes, that is another item that's on the lead that I get the phone to person's the phone number. Perfect. Okay, so you got the lead, you got to make the phone call and how does that phone call start for you?

Or how did it start? I just basically called, called the person and stated that I received information from them and putting their information through this website and just started talking to them about their situation why they're interested in selling. And then from there, I just wanted to set up an appointment to physically see the property and talk to them face-to-face. Got it. And how did that appointment go? I went very well. I had an opportunity to see the property and also learn about the urgency of them wanting to sell. So it was good for me because

I like to talk with people face-to-face instead of over the phone. So that's why during the phone conversation, I really didn't want to get too in-depth because I want to say that for the face-to-face. Good. I guess it goes back to my realtor days where the phone call is just try to set the appointment. Exactly. And then when I get to the property, that's when I want to have the in-depth conversation. That's the perfect way to do it.

The point of the phone call is just to set the appointment. So nice work. So what kind of prep work did you do before the meeting? Did you do anything or you just went to the appointment called? First of all, I did a quick drive-by just to get more familiarized with the area so that I could be more knowledgeable when I did meet with him. And then also I subscribe to another website here for this area that helped you evaluate what the ARV is called CRS data. It's just the website for the, I think they cover the southeast region where they pull court records and other data from the courthouses. It's all simplified in the database where you can just quickly type in and address and find out what the tax records are for that property, what the previous sellers were, what the sale price was, and also near the pool comp for that particular area as well.

So that's another paid subscription that I used as well to help me assess what the true value of the property is. Okay, super. So when you had a little bit of investigating, so you had an idea of what the value was when you reached your appointment. Did you reach an agreement with the seller there on the spot, or did it take some time before you guys came to a meeting of the minds? It took some time and being that that was my first one. I guess I was a little nervous, so I did not make an offer. the appointment. I told her that I would have to evaluate the information that I collected at the appointment

and then get back to her with an offer. But I think I did that only because I was nervous. I just wanted time to collect my thoughts before I submitted an offer to her. Mm-hmm. Mm-hmm. I love it. And that's actually how I recommend doing it, especially in the beginning. So when it is your first time, that's a big decision to go ahead and formulate an offer right there on your

feet and the way you did it is absolutely perfect and it's okay because obviously it turned out okay right oh yeah super let's see did you use a formal purchase agreement or did you use something else to present the offer i used the state issued purchase agreement okay and then did you go back and give that to them in person did you mail it to them fax it to them i emailed it to her i use the letter of intent i use the i used two shorts instead of the three that you recommend One was the all-cash offer, and then the other method was the payment. So she chose the all-cash offer because she just wanted to be done with it. Very good.

So you got the offer accepted. You're under contract. What was your exit strategy for this? What were your plans? My original plan was to rehab it and keep it as a rental because it was going to produce pretty good cash flow. but just talking with other investors in my area group and talking with all of the renters that were calling me because I did place an ad on Craigslist to find tenants for it

and just talking through some of the prospective callers, I told them that what the property was and where it was located and that was a pretty hot area. So I decided to just go ahead and sell it because I received some offers on it. and they were offering me a pretty good offer that I could make a pretty good slip on it and just go ahead and use that money to purchase another one. Got it. So did you close on the property first and then sell it, or were we able to do like a current close or assign the contract?

No, I closed on it first. Okay. And after about a month, that's when I started to get the calls because I guess I was still going through shock or excitement or whatnot. But I really didn't do much with it for the first week because I guess I was still just trying to wrap the head around the fact that I finally closed on the property. Right. So I really didn't do too much for the first week or two. But then after that, I started to clean it up and get it ready for the tenant because the great thing about it is that it really didn't need a whole lot of work, just a few cosmetic items. So during that time frame, I contacted three different contractors to give me some quotes on what that would call.

cost to do those updates so that I could get ready for tenants. And during that time frame of getting the quotes and also putting the property on Craigs, that was the time frame where I started getting interest in people wanting to purchase it. Got it. Did you use your own money to close or did you get a loan? I did not. I used my IRA as I wrote my 401k over into a self-directed IRA and purchased it.

Oh, okay. Very good. I love it. So you were, you planned on, what you call it, holding onto the property, you were getting bids, and you just started kind of talking about it, you put an ad on Craigslist, and then you just started getting offers, and you decided, hey, this is too good to pass up, and you decided to just sell it? Yeah. Super. Okay. Can I ask what your profit was on the deal?

Sure. After all the expenses, I made about $6,500. That's awesome. How did that make you feel to complete this deal and get paid for it? I'm beyond excited. I mean, after this long journey, two years of wanting to do this, finally make it happen, and to know that it is possible was just, it was just undescribable. It was great.

Congratulations. I love hearing about it. And I know we've talked a couple times before. And I'm happy to hear that that they pulled through. What was the biggest surprise to you after, I mean, looking back, what was the biggest surprise to you about the whole deal? Biggest surprise. I have to tell you, Matt.

It was a pretty easy transaction even on the selling part. It was pretty smooth all the way through. I really didn't have any two. I really didn't have a whole lot of hiccups or headaches that happened. It was really good property first time out. So maybe that was the surprise that it wasn't that big of a deal. Right. Right.

Right? Super. I love it. So how is the completion of this deal, you know, impacted your business? What's going on with you currently? Right now I'm just in trying to find. another one. With the same methods?

With the same method and also starting to explore the NLS well. So we will see. But I remember hearing talk a while on one of your podcasts or somewhere I heard you say that after your first, it took you in eight months to find the second one. Yeah. So I have that in the back of my head because I see all of these properties, but they're not fitting the criteria that I need them to be. So I'm so excited.

I'm ready to get that second deal, but I just don't want to have hazardly jump into another property where it doesn't really meet my criteria. So I'm trying to calm myself down and not just go into another property where it doesn't make sense. Right. That's what I'm doing right now. So I have your conversation in the back of my head where it took that another eight months to find a second property, so don't be too anxious to jump into another deal. Yeah, I mean, that could have been partially my fault because that first one came so easily and I made such a good chunk of money. I thought I could do it whenever I wanted to, so I didn't work that hard after the deal,

not as hard as I did work before it. And so I think that contributed to it as well. But it still was eight months by the time that next deal came around. I'm sure it won't be that for you. I mean, so let me ask you this. This might be a good indicator. You know, looking at your daily activities and what you're doing with your lead generation, If you continue to do what you're doing right now, what do you see for your future?

Well, my goal for this year is to wholesale three more properties, and that will give me the capital that I need to buy one property and hold it by the end of 2014. Mm-hmm. Super. So three wholesale deals, and then you're going to hold one. I like it. Yeah. And you're going to hold all of these in your self-directed? Well, that's what I haven't decided yet.

Mm-hmm. Okay. I'm still debating on what the best move. will be. Right. Right. Awesome. Awesome. Well, thank you, Rashida. Any questions for me or anything about the deal or anything that I can help you with or help you with what you're working on now? No, not really. It would be really beneficial if you could do a future podcast, like episode. I think it was 68. I had an incorrect in my movie that I made. It was episode 68 where you talked about all the ways you could generate leads. Oh, right. So that podcast is super valuable. So if you could do it,

another one of those with new ways to get leads to generate leads, that would be awesome. Okay. That's great. Happens to be the very next episode that I'm releasing is all about generating leads. So good. Oh, okay. But this episode that we're recording right now is actually going to come out after that one. So I guess you can just kind of say you predicted it.

Super. All right. Well, that's great. If anyone listening wanted to contact you for the sake of creating a professional connection. What's the best way for them to do that? They can email me, and my email address is Rashida, the closer, at email.com. And that is R-A-S-H-H-I-B-A-T-E-A-T-E-L-O-S-E-R at email. I love it. Do you give that email to your sellers?

I do. They're like, oh, boy, look who we're dealing with. We're dealing with the closer. That's awesome. Well, thank you so much for your time. Thank you for being so giving with your experience, and let's do it again. Oh, most definitely. Super. Okay, dope.

Thank you, Matt. You bet. Rashida, have a great one. You too. Bye-bye. So, if you happen to have a question, comment, or concern that you'd like me to answer or address here live on the show, please share them with me on the Epic Real Estate Investing Hotline at 1-888-891-7203, 1-888-8-9-1-7-203.

That's it for today. I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite radio network.

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