Wholesaling isn’t always easy, but when you work past the rough patch of the road and reach your destination it can be exceptionally rewarding. In just one year as a member of the Tribe, Matthew McCourry has brought in over $67,000 – and that’s on top of a 9-5 job. Today we dig into how Matthew persisted through a difficult, four-month deal that eventually turned into a goldmine.
Digging into the Gold Mine: The Big Deal
- Matthew found this property from his county’s tax delinquent list. Because of the laws in South Carolina, the people on this list only have one year to renew their liens before risking foreclosure. They’ve already found two deals from this relatively small 800-property list.
- This list wasn’t easy to get – Matthew had to talk to numerous people in the county’s office before someone was able to provide it. Persistence pays off!
- Matthew marketed to this list using one of the Tribe’s templates (Why reinvent the wheel?) on a pink postcard, and they got a 5.75% callback rate. Almost all of those calls came in within 4 or 5 days.
- This particular individual started aggressive on the phone, calling Matthew a liar and scam artist. However, calmly, Matthew built rapport and stated that he ran a business buying homes – and discovered the caller owned a mobile home park.
- They met at the park that day. It wasn’t in good condition, but it had a LOT of potential value: city utilities, independent utility metering, city trash pickup, and a convenient downtown location.
- After the second time they spoke – and Matthew listened to his story – he could tell the property owner was a very motivated seller.
- They settled on a $180k contract, and then Matthew reached out to his cash buyers, listed the property on Craigslist, and shared it on Facebook.
- His cash buyers weren’t very interested, but after posting it online the phones started ringing off the hook.
- Then there was a problem: he found out that no more new mobile homes could be built on the property, which severely limited its potential. In response, Matthew called city council members (whose numbers were public).
- He gave a presentation at the next city council meeting, which ended up being packed with people from the town. Ultimately, they ended up rewriting the local ordinance, twice, and getting it passed at another council meeting.
- This deal took four months, but Matthew walked away with $42,500.
- Principles: Life and Work by Ray Dalio
- Rhinoceros Success: The Secret to Charging Full Speed Toward Every Opportunity by Scott Alexander
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
Cody Hofhine: Welcome to another episode here on Wholesaling Inc. podcast. This is Cody Hofhine. I’ll be your host today. Today, we have a rockstar rhino that’s going to share his story for all you new wholesalers and those that are wanting to be a wholesaler.
Listen to this story. He’s going to talk that it’s not easy. It’s not just all roses. But he’s going to tell a story of how he saw a potential deal and how it turned into a goldmine.
Today, we have Mr. Matt [McCourry 00:01:22] from Myrtle Beach, South Carolina. He has been in the tribe since January of 2017. So, in his first year he’s already done five deals that have brought him in an additional $67,000 this year.
Why do I say additional? Because he works a 9:00 to 5:00 job. He works full-time in a family business, growing that business, and doing this part-time. So, for those that are out there thinking, “How do I do this part-time,” this is the podcast to listen to. He is married, has no kids at the moment, maybe I can get him laughing here in a minute of why he needs to have kids. They’re awesome.
But we’ll talk! This is going to be another debate, Matt. All right. He is going to talk about a deal where he brought in a lot of money. So, stay with us throughout this whole episode. This is going to be one, I can tell you right now, that you’re going to want to download, listen to over and over again, because it will inspire each one of you to take massive imperfect action so that you can go out there and do your first deal.
Matt, my man. Get on the line. Let’s hear a little bit about you. Fill in the gaps of some of the things, maybe, that I’ve left out.
Matthew: Oh my gosh! I can’t believe I’m on the podcast. I’m going to be famous. This is awesome. I listen to this podcast every week, so I am super stoked to [inaudible 00:02:39] on here.
Cody Hofhine: Well, guess what? You are going to be the next inspiration to a lot of people that are out there looking for a way to get into wholesaling. They need your story. There’s a lot of people you’re going to connect with, that your story’s going to really hit at home.
So, this is going to be an awesome, awesome opportunity for you to inspire a lot of people.
Matthew: Awesome, awesome. Hey, I’ll do the best I can.
Cody Hofhine: You’re going to do just great. I’ve loved every time that we’ve talked on the phone. It’s been awesome, uplifting, inspiring conversation. So, I’m excited for you to share your story. Man, I know we’re not going to … I can’t share too much and nor can you at this second, but this deal we’re going to deep dive, holy smokes. This is going to be a good one.
Matthew: Yeah. I’m excited. This is a deal that if I didn’t have the tribe and talking with you guys on the coaching calls, who knows where it would have went because it took a lot of tenacity to get a lot of rhino nests to get through it.
Cody Hofhine: I love it, I love it. So, kind of tell us what got you into wholesaling in the first place? What was it that kind of connected with you on why you took the leap to get into this?
Matthew: So, as soon as I got out of college, I remember I went to … I wanted to do the smart thing. So, I went and opened up … I think I was 24. I went and opened up this … It was an IRA. I started putting money into it every month, some mutual fund thing. Well, at the end of that year, it didn’t make any money. I was so upset. I was just driving down the road one day and I was like, “Dude, this was never going to work.”
So, I was working at a family business, I was doing okay there. I was just getting my feet wet into it, but I really wanted to make a lot more money. I had huge goals. So, I started just … I don’t even know. I bought an Audible.com subscription. I started to listen to a lot of books about investing, which eventually led me to real estate. I was like, “Oh, I can buy real estate and have people renting houses from me, and then I can make a lot of money by them renting the houses. I don’t have to work as hard.”
So, that’s kind of where it led. I started off when I was 25 and 26. I bought some rental property. I had some rental property and those were doing great, but then I realized, too, that wasn’t even what I wanted. I wanted a business. I wanted a real estate business. So, I’d always thought the whole concept of wholesaling was a bunch of … I literally thought it was complete crap.
I promise. I would roll my eyes every time somebody talked about wholesaling because you’d walk into the [inaudible 00:05:22] meeting and a kid would come in, “I just want to flip houses and wholesale and rent.” It was like, “You have no idea.” People just threw out wholesaling and it was just ridiculous.
I heard Tom Krol one day and I was like, “I want to listen to this cat.” He was talking about all these deals and deals. I remember one day he talked about his average profit per month. I can’t even remember what the number was. It blew me away. I started thinking about it and doing some research. I was like, “Oh, the real key to having a real estate business is building a real estate pipeline.” It’s like, how do you build a pipeline? It’s like, well, you can’t rely on brokers and agents to do it for you. You know? They’ve got too many other people to worry about.
Cody Hofhine: Sure.
Matthew: So, I started listening to you guys and I realized that you guys had it down to a science. It was like, direct mail and all these marketing channels were bringing in leads. You were taking the leads and you were doing something, converting those leads to deals. It just all clicked in my head late last year. I was like, “If I want a real estate business, this is what I’m going to have to do.”
The work part has never scared me. It was like … I just kept clawing and clawing to understand what I needed to do. The way you guys talked about wholesaling and this program was what really led me to take the plunge with you guys.
Cody Hofhine: I love it.
Matthew: I’ve not looked back all year. It’s been such a blessing. I’m so thankful. So, that’s kind of how I got into it.
Cody Hofhine: I love it, man. This is great. So, Matt, every time you’ve been on the phone call with me, I’ve just loved that it’s always these action based questions. You hop on and you hop right off. It’s like you hop on, “Cody, what about this, this, this, this, this?” We talk about it. We deep dive it. All of a sudden, you’re like, “Okay, see you!” Boom! All of a sudden, you’re back on.
Then the following week, “Hey, so, as of last week, I did this, this, this, this, this, and this happened, and what about this, this, this, this?” Boom! “Okay, see you, bye!” You’d hang up and you’d go right back to town. I can tell you, the success you’re having is directly related to how much action you’re putting into it. I think it’s fair to say, to just give all of our listeners a fair holy smokes. This is not easy.
You have made plenty of mistakes. You’ve failed your way forward. I love that that does not scare you one bit. You go out there, you make a mistake, you learn from it. I think the only education we talk about in the whole entire Wholesaling Inc. program is the only education that we give is let your mistakes be your education, because other than that, it’s just simple instruction to get out there and take massive action.
Matthew: Yep. I mean, you’re absolutely correct. Failing forward is the way to do it. I suffer a lot from, I guess, the analysis paralysis thing when I first got started. With this, I mean, you can’t get so hung up on the details until you’re at the last stage and actually doing the deal. That’s what I like. It’s kind of fed to you where you can get out there and you take action, and that really sits well with me. It really does.
Cody Hofhine: I love it. Well, let’s deep dive. Let’s get our listeners inspired of why they should get into wholesaling, and why they should be taking massive action, like you have, to get their first deal.
So, let’s kind of give me, maybe, just a [inaudible 00:08:31] of this deal. Let’s talk about it. Let’s talk about where it came from, what kind of marketing did you do to get this lead. Let’s go down to the nuts and bolts and nitty gritty.
Matthew: Sure, sure. So, this actually came from a phenomenal list that I had pulled from the county, the tax delinquent list.
Cody Hofhine: Tax delinquent. We always love that list.
Matthew: Love it, love it. I thought, when you guys talked about it, I was like, “Oh, we can’t do that because South Carolina is a tax lien state.”
When a property goes delinquent … So, if they don’t pay their taxes, they have until that December of whatever year that may be to pay their taxes, or the county puts a lien on their property.
Cody Hofhine: Uh-huh (affirmative).
Matthew: [inaudible 00:09:13] happens after that, is they have another year to redeem their taxes, where they can buy that lien back plus interest. So, for that second year … So, it basically takes two years for them to lose their property.
So, that second year, in the first quarter, goes three percent interest, second quarter of the year is six percent, then nine percent, then 12 percent at the end.
Cody Hofhine: Uh-huh (affirmative).
Matthew: I used to buy some tax liens when I was reading books and doing all that crap. So, I know it inside and out.
This list was actually the tax delinquent list, South Carolina, from the people that had already … The liens for their property has been bought at the sale, and so, they were going through that one year period. If they did not do something or redeem their liens, then their property would be … The investor that bought that lien could foreclose on them.
Cody Hofhine: Uh-huh (affirmative).
Matthew: Basically. So, that was the list I got and it was very, very, very hard to get.
You guys say … I think when you guys were coaching us, you’re talking five or seven people. I had to ask 19 people and I can’t [inaudible 00:10:14] I cannot tell you how many of those people looked at me that I had moron written on my forehead. [inaudible 00:10:21]
Cody Hofhine: Deer in the headlights. “What are you talking about? I don’t even know what you’re talking about.” Then you just keep asking.
Matthew: Exactly. You just keep asking. You keep asking. Eventually, this lady was like, “Okay. You need to talk to this gal.” Then I went and talked to that gal. She’s like, “Oh, yeah. We have that.” It’s like, “Sweet!” [crosstalk 00:10:36]
Cody Hofhine: Why couldn’t we do this a month ago?! Come on!
Matthew: Yeah. Let’s get real here. Geeze! Can you not have given me that a long time ago?
So, I didn’t even run this list. I started in January and that was one of the first ones. Boom! Tax delinquent. Run tax delinquent. We didn’t even run this list until May.
Cody Hofhine: How many were on this list?
Matthew: Not a lot. We ran it with just land, too. We left the land on there. We didn’t really mess with the list too much.
Cody Hofhine: Uh-huh (affirmative).
Matthew: I think there was only 700 or 800 people total.
Cody Hofhine: Okay. So, not even that big of a list.
Cody Hofhine: So, those lists [inaudible 00:11:06], that’s not considered a big lists. So, I love the sounds of this because this is going to let you know how valuable that list is. This is a very small list, and this is where we’re going to talk about, deep dive, one of his deals, of where he got it from. So, that’s awesome.
Matthew: Yeah. We actually did two deals on that list. [crosstalk 00:11:22]
Cody Hofhine: Wow.
Matthew: That list is a high producer.
Cody Hofhine: That is. That is.
Matthew: [inaudible 00:11:26]
Cody Hofhine: So, tax delinquent, you get it going, and what were you using for your form of marketing? Once you had this list put together, how did you market to these individuals?
Matthew: I was using a pink postcard. It was the tribe postcard that you guys recommend. Was it why redo the wheel, or whatever that saying is. I don’t know.
Cody Hofhine: Why reinvent the wheel? Okay.
Matthew: Why reinvent the wheel. There you go. Yeah. Why reinvent the wheel. So, I used that. Stuck a number on there from just one of these … a call fire number. That’s what I used. A little pink postcard.
Cody Hofhine: I love postcards!
Matthew: Oh, man. It was so cheap. It was 38 or 42 cents a postcard with [inaudible 00:12:06] You can’t beat it, really. [inaudible 00:12:08]
Cody Hofhine: When you send this out though, is it quickly the phone starts ringing or is it over a week’s time, two weeks’ time, three weeks’ time, and then … Well, I guess, let’s back up. Probably the better question, did you send all 700 of these babies out all at once, or did you break it up?
Matthew: Oh, yeah. I dropped it. I was ready to rock. I was ready to go. I was ready for that phone, buddy, to start ringing, man. I was ready to just get into it. [crosstalk 00:12:34]
Cody Hofhine: Perfect! [crosstalk 00:12:35]
Matthew: Seasonal business, too.
Cody Hofhine: Sure.
Matthew: [inaudible 00:12:38] business goes from boom to bust. So, six months out of the year we’re going absolutely crazy all through the Summertime, and then sort of from mid-October to about first of May, it’s pretty quiet. There’s not a whole lot going on.
So, I really was trying to get some serious traction going before the Summer season picked up really busy.
Cody Hofhine: Yeah. Okay. So, 700 postcards. You drop them all at once. What was it like for you for the phones? Did it start ringing off the hook? Was it a one percent return? What did that look like?
Matthew: Oh, it was awesome. We were at five … I think, on that list, that was one of our highest calling lists. We were at 5.75% [crosstalk 00:13:22]
Cody Hofhine: So, about 35 to 40 calls off that?
Matthew: Yeah. They all came in … Most of them came in within the first four to five days.
Cody Hofhine: Okay.
Matthew: Because lots of people live there at their property, and they were there. There weren’t a whole lot of absentee owners.
Cody Hofhine: Let me guess. Everyone was so happy to talk to you.
Matthew: Oh my gosh. I can’t tell you how many people … even the guy I did the deal with, that we’re going to talk about. I mean, he was like, “You’re a scam artist.” He told me what he had, I was like, “Look, if you want to meet me, I live here.” He lives in Loris and I live in Conway. I was like, “I’ll come and meet you.” I was like, “How about that?”
He had unintelligible speech half the time. So, I think he said …
Cody Hofhine: Wow.
Matthew: I was like, “Well, let’s go meet then.”
Cody Hofhine: So, even this phone call comes in and he’s even badmouthing you. “You piece of crap. You send me a postcard. You guys are scam artists.” So, tell me how you changed that? How did you get his mind to shift to actually meet with you?
Matthew: Well, he was just accusing me of being a realtor and a shark, and this, that, and the other. I literally just told him, I said, “Hey, brother. I buy houses.” I was like, “Do you have a house? Did you have a house you were wanting to sell?” Every time I say that, whenever somebody’s like, “You this, and you that,” and this, that, and the other, I was like, “Hey, look, man. I’m just a guy that runs a business. I’m trying to buy houses. Did you have a house you were thinking about selling?”
He literally just, “Well, no, but I got …” Actually, it was more like, “Well, I got a whole mobile home park.” I was like, “Okay. I don’t know anything about mobile home parks, but I’ll look at it. Why not?”
Cody Hofhine: Wow. Wow. So, instantly, by just doing that transition, “Call me whatever you want but hey, I’m just here, trying to buy homes. Do you have a home for sale?” He doesn’t have his own personal home for sale, but you say it turns into this mobile park.
Now let’s start to get into this. Did you meet him at the mobile home park? Did you meet him off-site at a Starbucks, or what did that look like?
Matthew: No. I met him right there at the mobile home park. That’s where he wanted to meet. He just said, “Meet me there.”
Cody Hofhine: Okay.
Matthew: It was literally … Luckily, that day, I was in my office, which is at my house. So, I just hopped in my truck and I went down there to meet him. When I got there … Most people probably think it’s a disaster because this place was. I mean, this place looks like World War III had just went down there.
Cody Hofhine: Were active people really renting there, or still right now, was it ran down but there was still active rent going on?
Matthew: Yes. So, it’s a 23 lot mobile home park.
Cody Hofhine: Okay.
Matthew: 17 of them were operational. Out of 17, about five of them looked nice and the other 11 of them or whatever …
Cody Hofhine: 12. Uh-huh (affirmative).
Matthew: I’m terrible with numbers.
Cody Hofhine: So am I.
Matthew: You could wholesale and not be good at numbers at all.
Cody Hofhine: This is a win-win for everyone listening. You don’t even know simple math and this guy’s crushing it.
Matthew: So, there. [inaudible 00:16:20] Yeah. So, I went there and looked at it. Yeah. It looked like a war zone. I mean, it was like, big, scary dogs, chilling out in the yard, barking at you. Kids, all dirty with no shirt on, just sitting there, staring at you. I’m like, “Oh my gosh. This is crazy.”
When I saw it, I remember I had listened to a few podcasts, actually on, I think, Bigger Pockets. It was talking about how to value a mobile home park. We started talking and some things started going off in my memory bank from when I’d listened to these other podcasts.
Number one, infrastructure. It was on city water and sewer. Number two, all independently metered. Number three, trash pick-up. Number four, is this small town? It’s not a bad town. Loris is a little small town, probably 20 minutes from Myrtle Beach, another 20 minutes from Conway, which is the next largest town. Easy access to everything you’d want, major highways and whatnot.
This mobile home park was literally in downtown. It was right beside the IGA, the post office. You could walk to all the little restaurants in town. It was phenomenal. I was like, “This could probably make a really good investment.”
So, yeah. That’s what I saw when I got there, when he and I started talking.
Cody Hofhine: Okay. So, now he’s talking. What was the … Was there true motivation, or was this just a price based, “Here’s the price. Can you do it,” or was there motivation why this guy wanted to get rid of this?
Matthew: Oh, no. This guy had some … He was really, really, really out of shape. I say that being respectful and nice. He was really out of shape. He had some sort of cancer that was really affecting him. All he wanted to do was leave everything behind and just go get this condo at the beach and live down there off of some cash that he had, because he claimed he didn’t have that much longer to live, or whatever.
So, I just sat there and listened to his story. He told me about it. He’s tired of dealing with all these people, tired of dealing with all these renters. That was his big why. He also didn’t have the money to pay for his tax bill. So, he eventually, after our second … On our second meeting, he admitted that to me. He’s like, “I don’t have the money to pay my delinquent taxes. Some guy who bought my lien is going to redeem me at the end of the year, and that’s going to be the end of it.”
Cody Hofhine: Wow.
Matthew: That was his [inaudible 00:18:48]. If there was ever a guy that was just run down, had enough, this [crosstalk 00:18:52]
Cody Hofhine: This guy was it.
Matthew: This guy was it, yeah.
Cody Hofhine: Well, the key thing is though, for those listening to the podcast, the key things that, maybe, you can listen to, that, maybe, is not directly being said right now, is he listened to his story. He just went there to develop a relationship of trust.
I want each of you to focus on this as Matt is sharing this story. Listen to how much he is trying to establish a relationship of trust and, truly, build a friendship here, because at the end of the day, if there is going to be business that can be put together, and there’s a deal where we can make it a win-win for both the seller and us, the investor, it’s going to always go to the person that takes the time to listen, takes the time to establish that relationship of trust.
I always say God gives you two ears and one mouth. Use them proportionately. Matt did a great job of just going out there and listening to this individual. Listen to the whats, the whys. Why is he selling this? What does he want to accomplish with this sell? He wanted to just live on a condo on the beach for the rest of his days. Matt can now strategize with him to put together a win-win and, hopefully, put this under contract.
Again, it goes back to are you going out there and listening to these individuals and establishing a good relationship of trust, like Matt is.
Okay, Matt, my man, keep going.
Matthew: Yeah. That’s so true, by the way, because that’s what I did. I just listened to him. He had something in his history where … He was one of those guys that always felt like he was taken advantage of. So, I just made it clear to him, I was like, “Look, Mr. Seller, I’m not here to take advantage of you. I’m here to make … to buy real estate. I’d like to make you the best deal I can, and I’ll pay as much as I can, but that’s the best I can do. No hard feelings, right?”
He was like, “Oh, of course not.” So, we just, like I said, we continued on that way.
Cody Hofhine: Nice.
Matthew: So, we went through the whole deal, started talking about it, and this thing checked off every single one of the boxes that I knew about for being a good quality mobile home park investment. Like we just talked about, the infrastructure, independently metered, trash pick-up by the city, grandfathered in, all that stuff.
So, it was just like a bing, bing, bing all the way through. I was getting super excited. So, anyways, we talked about signing contracts and we negotiated price. He originally started off at $300,000 and I just told him, “No way.” I started off with $150,000, I think, because I had no idea what I was doing. [crosstalk 00:21:14]
Cody Hofhine: Sure.
Matthew: Yeah. I was just trying to get it as cheap as possible. Because like I said, I don’t … it would take … I didn’t have time to look at comps, you know? So, I couldn’t find a comp, you know? [inaudible 00:21:24] have to do some more research.
So, eventually, we did $180,000 and I was like, “Well, hey,” I pulled out the documents like, “Listen. I’ve got some contracts with me. Do you want to just make it official?” He was like, “Well, I don’t mind but I really don’t want to do that unless I get to sit down in front of this guy, so and so,” and he’s a big time realtor and a small time money lender in the rural town of Loris.
So, we kept talking some more. I kept trying to build the trust but he wouldn’t sign the document, but he wanted to meet the next day at this guy’s office. So, I went there, to this guy’s office, again, had no idea what I’m doing, and I just tried to go in there with as much bravado as I could. So, I went in there, sat down, the seller was there, this guy was there, and I said, “Hey, look, man. Here’s the deal. I buy houses. This is my contract. Simple two pager. Easy, peasy lemon squeezey.”
I was like, “I’m not going to have some big crazy realtor contract. This is probably something you see every day, right, Mr. Big Wig Realtor Guy?” The guy literally just looked at it and said, “Well, looks good to me.”
Cody Hofhine: Assume the sell, baby!
Matthew: I was like, “Sweet!”
Then I had a contract. I immediately started marketing it. What I found from my comps, which if we had held out a little bit longer, probably could have done way better on it, and if we’d knew how to market a little bit better, but I showed it to all my cash buyers. I called them up on the phone, showed them the deal, then I took it. They still didn’t really know me too well just yet, you know? So, I don’t think they paid me a whole bunch of attention, which is crazy because, actually, I had one of my biggest cash buyers, who’s bought two deals from me so far, came back later and was like, “Hey, do you still have that mobile home park?”
I’m like, “No, man.” He’s like, “Hey, come on, man. Can you break it off with these cash buyers and sell it to me instead?” I was like, “No.” That’s not [inaudible 00:23:16] But anyways, long story short, I put it out to the cash buyers and I had it on Craigslist. Oh, yeah. I put it out to my cash buyers and I was like, “You know what? I’m going to put this thing on Facebook and Craigslist.” So, I slapped that thing on Craigslist and then when I did that, my phone literally rang off the hook.
Cody Hofhine: Melted!
Matthew: Oh, gosh. It was nuts. I don’t know if the biggest mobile home park owners in the country as just scouring Craigslist for mobile home parks, or what, but [inaudible 00:23:44]
Cody Hofhine: Was the intent behind this, is to just resell it as is to a guy that wants a mobile home park, or was the value to have the land be something else in the future to build commercials on? What was the thought when you were going into this? Just keep it as is, as a mobile home park?
Matthew: Yes. Because when you … So, yes. Keep it as a mobile home park would be the best thing for it because, like I said, checked off all the boxes. From terms of cashflow, this thing would be … If you put debt on it, appropriate debt from a bank, in terms of a commercial loan, it would be spitting off above a 20% cash on cash return every year, as is. That’s assuming you didn’t do anything to it.
It was, as it was at the moment, a 12% cap rate on the in place numbers. That was … That, to me, I was like, “Holy smokes. Somebody …”
Cody Hofhine: Is going to want [crosstalk 00:24:38]
Matthew: Will pay for this income stream.
Cody Hofhine: Sure.
Matthew: Somebody, because this is phenomenal. Now I’m really stoked about mobile home parks. I’m taking all my wholesaling money and [inaudible 00:24:47] mobile home park because it was just nuts.
Cody Hofhine: Yeah. Now, how many cash buyers ended up wanting, or had interest in this mobile home park?
Matthew: None! None of them. It was unbelievable. They were all like, “Ahh.” They didn’t even really look at it, look at whatever I put together, which was kind of sad.
But, hey, whatever. We rhinoed through it. I put it out there as far as I could. Craigslist, Facebook, all that stuff. Called all my realtor buddies that I knew and told them about it. That’s when the phone started ringing off the hook.
Ended up meeting these two guys … or, no. What happened was these two investors flew down from New York and they actually went to the city to talk with the city planner. The city planner basically said, “No, you can’t put anymore mobile homes back on there.” So, that, of course, severely limited the value of the mobile home park. If you can’t put more mobile homes back on there, you’re stuck with what’s there. If something happened to those mobile homes, like burned down or something, there’s nothing you could do. It would be over.
Cody Hofhine: Wow.
Matthew: You can’t … That lot would sit there and not produce revenue anymore.
So, that scared off, I think, once that kind of word got out about that, that kind of scared a lot of people off. I didn’t know what to do. I think I called you guys and I was like, “Man, what should I do? Should I go down here? Should I try to figure this out?” So, what I ended up having to do to fix that problem … By the way, the deal was if I didn’t have the rhino tribe, I would have thought the deal would be just sitting dead in the water. [inaudible 00:26:14]
That sucks! That deal’s over! But I charged forth and … I like that saying, charge forth. I charged forth and …
Cody Hofhine: That sounded good! Keep going!
Matthew: [inaudible 00:26:24] Yeah! I charged forth! [inaudible 00:26:27]
But I charged forth and I went and met with a city planner, then I started calling some city council members, because their numbers are just available. So, I started calling them and telling them what I wanted to do with the park. I’m like, “Look, here’s the deal. You have Mr. Seller. Mr. Seller doesn’t care about the park anymore. You have Mr. Seller’s son, who doesn’t care about it either, and they’re both going to run this thing into the ground. It can only be a mobile home park. It’s not that big. Loris is not like you’re going to get some big apartments for redevelopment.”
Because they tried to pitch the idea, “What about if you built houses out there?” I’m like, “Look, it’s only four acres. You’re not going to get that many homes on there.” It’s not an economically viable project. Not that I knew one way or the other, I was just trying to argue my case as best I could.
Cody Hofhine: Sure.
Matthew: Anyway, so, I just told them, “Look, let us make this thing a nice mobile home park. We’ll bring in new tenants. It’ll benefit the city. It’ll benefit us. We’ll make a buck or two. We’ll pay our city taxes. It’ll have more citizens walking around the city,” because remember, it was in the middle of downtown Loris. Not a bad deal.
Some of them started to bite on that. They were like, “Well, hey, why don’t you come and talk to us before the city council meeting?” I was like, “Cool! Okay. I’ll do that.” I started talking to a little bit of them. They were like, “Look, just come make the presentation to the rest of the city council at the monthly city council meeting. We’ll go from there.”
So, I was waiting … I think this was we’re getting to the end of, or we’re getting to mid-June. Okay? So, the next one I had was like the July whatever city council meeting. Of course, July 4th was there. That kind of mixed it up too. In the meantime, I had these guys from Craigslist that had called me and they were two guys that lived here locally and were looking for an investment property, and they had some money.
So, they called me and were like, “Look, we’ll sign whatever you want us to sign to do this.” I was like, “I wanted a $1,000 nonrefundable deposit. I need you to sign this assignment agreement. We’ll work through it.” They were like, “Okay, cool.” So, that got them to sign. They were some of the best … They were the best buyers I’ve ever had. They were through with me right there until the end of getting this thing done. So, it was pretty cool.
We actually developed a good relationship after that, as well.
Cody Hofhine: Awesome.
Matthew: Yeah. So, anyway, I had this whole speech prepared out. I thought I was just going to be meeting with the city council. So, I thought I was just going to be addressing, I think, 12 or 14 people, something like that.
Well, I got up there and it’s actually half of the town of Loris is there.
Cody Hofhine: Wow!
Matthew: I know. I am the worst public speaker. I say stupid stuff all the time.
Cody Hofhine: Amen.
Matthew: So, I was like, “Crap!” So, I got in there and I said something in there that has haunted me for the rest of the deal. Not haunt me, it was kind of a joke.
I got up in there and I basically broke down what we wanted to do with the park in a four step plan. I think the first step was clean up the trees and whatnot. Step two was get the infrastructure looking better, which is doing a few things here or there. I think step three was getting the riffraff out. I thought riffraff in my head because I had heard some of the council members, when we had spoke on the phone, talking about how crime was bad in that neighborhood, and the fire truck couldn’t get down the roads and that kind of thing.
So, I said, “riffraff.” I said, “Step three, you guys, is we’re going to get the riffraff out.” There are these whole bunch of ladies in the back of the city council meeting that their eyes got big as dinner plates.
Cody Hofhine: Don’t tell me they lived there.
Matthew: [inaudible 00:29:52] They’re like, “Hold on. What do you mean, get the riffraff out?” I’m like, “Hey, I’ve heard from the city that sometimes there’s some crime in there and things get rowdy on the weekends. We’re really trying to have a good community for good people here in Loris.” I was like, “You understand that, right?” She’s like, “Oh, absolutely not.” She’s like, “You’re going to kick people out of their homes.” I was like, “Oh my gosh. Here we go.”
Cody Hofhine: Oh!
Matthew: Yeah. It was a disaster. I can see it just like the Titanic, just slowly sinking. But the guy who was in charge of public safety took over and was like, “Look. Here’s the deal. What he’s talking about doing, making a place nice and spending all of this money to make it nice, they’re doing that for everybody’s good. It’s good for them because they can charge more and make more money. It’s good for the tenants because it’ll give them a better, more safe park to live in. It’s good for the city. It’s good for everybody. That’s normal course of business for doing what these guys are talking about doing.”
He’s like, “Number two, I had enough of sending my officers out there to deal with all the complaints, all the crap that goes on there on a daily basis. I’ve had enough of it. What they’re talking about is completely normal and there should be nothing wrong with it.” That kind of shut down the argument right there.
Cody Hofhine: I love it.
Matthew: I was super thankful for that. So, of course, with a new ordinance then came this guy. We actually had to go rewrite the ordinance, rewrite it again, get it passed at two separate council meetings. But it was a downhill slope from there, so, that was pretty good.
It was awesome to be able to get that closed.
Cody Hofhine: So, here we are, let’s go, before we even share the money you make, you go through this whole process, by the way. I’m sitting here listening. This can’t be a short thing. How long from start to finish, again, don’t share what you made. From start to finish, what are we talking? How many days, months were involved in this?
Matthew: Oh! We started somewhere in the beginning of June and we went to pretty much almost the end of September.
Cody Hofhine: Holy smokes.
Matthew: That’s how [crosstalk 00:31:55]
Cody Hofhine: So, June, July, August, September. So, four months.
Cody Hofhine: You’re going through this. But here’s what I want now. You ready? Because I’m already holding something in my hand, getting ready for this one.
We have four months of rhinoing through this. I want our listeners to know that sometimes these deals can take a little bit of time, but it’s worth it, because tell them what you made at the end of this four months, from this deal?
Matthew: So, we walked away from the closing table with $42,500.
Cody Hofhine: Oh! Hold on! [inaudible 00:32:35] This is going to go for some time because this was three months [crosstalk 00:32:41] Three months and $42,000!
So, here we have a three month closing process, or a four month closing process, which is … Kudos to you because there’s so many people that would have given up. They would have said, “Ah, that’s too much for me.” But you rhinoed through this. You got on our weekly calls and kept asking for direction, but you would get off and just take it, by the way, this is what I love. It ends up paying you $42,500. That is a heck of a payday for time involved with this mobile home park. Not many people would dare to go to the city council and talk and do all this stuff, but you did.
So, listeners, I’m telling you. Sometimes you’re going to get … in fact, not sometimes. If you are not uncomfortable every single day as a wholesaler, remember there’s no true growth going on. The business isn’t going the direction it needs to be going. You’ve got to get uncomfortable. You’ve got to stay uncomfortable. Matt is a perfect example of finding uncomfort and staying in that zone as long as possible, because it ends up having huge paydays of a $42,500 assignment, which is absolutely amazing.
Matt, my man, congratulations.
Matthew: I can’t believe I finally got the victory bell rung. I’ve been waiting on that daggum victory bell to ring since I’ve started the drive. Awesome.
Cody Hofhine: Worth it. Absolutely worth it. My friend, let’s do this. In wrapping up, to always help, and we do this on every one of our podcasts to get them to understand a little bit about you, if you were to start all over again, and it is January 2017 all over again, what is something that you would do different, or what is something that you would make sure that you did the same because it worked well for you?
Matthew: I mean, start all over on this journey or the real estate journey [crosstalk 00:34:37]
Cody Hofhine: In wholesaling. In wholesaling, yeah.
Matthew: [inaudible 00:34:40]
Cody Hofhine: What’s one thing, if you look back now with 2020 vision, what’s something you would have done different?
Matthew: If you want me to be perfectly honest, I would have taken the ego that I brought into this business, I would have taken it out. I would have just focused on being a rhino and going through the work. I thought that I knew better than you guys, honestly, and I was like, “I don’t need anybody to tell me about this and that.”
So, I skipped over all the good stuff and just was trying to do it all wrong. I would have just taken it step-by-step, got my ego out of my way, and just went for it. That’s what I would have done.
Cody Hofhine: I love it.
Matthew: That’s the only thing I would’ve done different.
Cody Hofhine: So, the key thing that you said, I love, is sometimes we, ourselves, are what stands in the way of success, and that sums it up perfect, is you stood in your way of true success and once you got out of your way, success started just hitting and just pounding at your door.
Here you are with now $67,000 more in your pocket this year, with … How many more deals are in the pipeline, did you say?
Matthew: I’ve got three right.
Cody Hofhine: Three [crosstalk 00:35:49]
Matthew: One was actually my very first deal, which I literally got that three weeks … I told you I started in January. Three weeks into January I got this deal.
Cody Hofhine: Wow.
Matthew: And I [inaudible 00:35:58], “Oh my gosh. I’m going to be one of these fast people,” but it was a [inaudible 00:36:01] deal. So, it’s finally set to close on the 16th.
Cody Hofhine: Holy smokes! That’s awesome. That’s awesome stuff. [crosstalk 00:36:09] Stuff from January is even closing now, you’ve got pipeline.
Matthew: Yeah. Yeah.
Cody Hofhine: Good stuff.
Matthew: It’s been a long journey, man. I had a big deal that was going to be my first deal that was a month after that in February. That was a $22,000 deal. I learned so much from that deal. I lost that deal.
Cody Hofhine: Oh! [crosstalk 00:36:27]
Matthew: I was devastated. I was like, “This sucks!”
Cody Hofhine: It made you stronger though, Matt! That’s my man!
Matthew: It did. It’s been a phenomenal journey and I thought I was going to get to the end of 2017 and write this year off. “You know what? 2018’s going to be fresh.” But I’m getting to the end of 2017 and we’re still chugging. We’ve got 12 weeks left to meet our goals.
Cody Hofhine: Love it.
Matthew: I’m looking at it now and I’m like, “Man, 2017 is probably my best year I’ve ever had in my life.”
Cody Hofhine: That is awesome. Now, you [crosstalk 00:37:00] If you are a reader, what is a book, the number one book you can say at this moment, that would help our listeners become better at who they are?
Matthew: I’m going to say … I will tell you, I will take the cheap way out and say the number one book is the Bible. If you want to be better, read the book of Proverbs by King Solomon. That’s my favorite, even though I don’t apply all that wisdom on a daily basis.
Cody Hofhine: [inaudible 00:37:21]
Matthew: Books communicate an idea, and I’m a big book reader. I have been for the past few years. So, whatever book I’m reading at the moment that communicates a new idea to me is my favorite book right then. I love all the books that everybody always talks about, of course, Rhino Success, or was it …
Cody Hofhine: Rhinoceros Success.
Matthew: What I’m reading right now, which I love, and it’s a brand new book. I think everybody should listen to it in the tribe and real estate and wherever. Principles by Ray Dalio.
Cody Hofhine: Yeah, yeah. [crosstalk 00:37:49]
Matthew: I love that book. I’m reading it right now. So, I’m super stoked about that.
Cody Hofhine: Well, perfect. Well, Matt, I want to thank you for being on this podcast. I know it’s been a long time and coming, and I love your excitement of sharing your story. So, I want to thank you for sharing your message today. I know this is going to help a lot of people that are listening to the podcast today.
Matthew: Thanks, man. I am just so excited to be on the podcast. I hope I don’t sound too stupid.
Cody Hofhine: No! It sounded great.
So, thank you for joining us. Get back out there. Go do some hard work. Go make this rest of the year a huge success. I know you can hit your goals, brother.
Matthew: Thanks, Cody. You the man!
Cody Hofhine: Okay! Now, as for our listeners, remember, remember, there’s so many gold nuggets that you can listen to on this podcast, in every podcast. We truly do break down these deals step-by-by, so that you have a huge, huge advantage over those that aren’t listening.
For those that aren’t getting the wholesaling, this is really a spot where you can break down some gold nuggets, implement the today. It is going to take some imperfect action. Progress, not perfection. If you will do these things, and just try them out, you’re going to be one step closer to your first deal.
Matt has given plenty of gold nuggets to help you along the way, so that you can get into wholesaling, so that you can make this a fun journey, a fun business in your life, where you can get into real estate and, ultimately, this leads to so man other doors where you can get into passive income, where you’re buying rentals and things like that.
It always starts with finding that deeply discounted property. That’s what wholesaling’s all about is how to find those off market, deeply discounted properties that you can turn for huge profits. If you need help building your personal business for wholesaling, go over to wholesalinginc.com and click on a strategy call. Book a time with our team and if we have open spots, we’d love to get you in. If we love what you say, we just might invite you to be part of the tribe, so that you can go out there and wholesale your first deal.
Until next time, take care, and we’ll see you on the next podcast.