After graduating from Baylor University in 1986, he continued honing his act in comedy clubs in the Southwest with new characters such as Peanut and Jose Jalapeño, but struggled against the perception he relates from fellow comedians that he was not a true a comedian because he relied on props. His experience at Catch a Rising Star in New York City served as a bitter confirmation of where ventriloquists stood in the comedic food chain, as the emcee at that club gave Dunham little respect. According to Dunham, after he arrived at the club in the evening and informed the emcee that he was a ventriloquist, the emcee reacted with derision, telling Dunham that he would be given a late time slot, and after that time slot came and passed, kept postponing Dunham's stage time until Dunham left the club. By the end of 1988, Dunham felt his career went as far as it could go in Texas, and he moved to Los Angeles, California, never having, as he has commented, "a real job", much to the concern of his parents, who assumed he would relegate his act to local venues such as church groups. When he first arrived in Los Angeles, the comedy in his act bombed. Dunham attributes to his underdeveloped comedy, explaining that while the characters' personalities were developed at that point, his jokes were not. In addition to this, the comedy world was not welcoming to ventriloquists, and his manager, Judi Brown-Marmel, did not use the word "ventriloquist" when finding bookings for him, choosing to present him as a comedy duo. After Dunham became friends with Mike Lacey, the owner of The Comedy & Magic Club in Hermosa Beach, Lacey gave Dunham a steady slot at the club, where Dunham sharpened his act by observing the techniques of comedians like Jerry Seinfeld, and taking the advice of colleague Bill Engvall, moving away from his G-Rated material toward edgier, more adult themes.