Jomy is an audacious tribe member from Rockland County, New York. The new rhino graduated with an engineering degree in electronics and computer but decided to give wholesaling a try in 2014. In this episode, he will share how he closed his first deal since joining the tribe, the fears he conquered along the way, and how a $433 investment got him $14, 000 in profit!
Closing his first wholesaling deal has not been a breeze but it didn’t stop Jomy from having a massive payday. While he still has a lot to learn about the wholesaling industry, he took risks and acted anyway. His courage paid off big time and made a world of difference!
- He went on ListSource and got a thousand names from the equity list.
- He used one of the best tribe postcards available and gave the list to a postcard company who sent it off.
- A motivated seller called the next day. He has an unattended property that he desperately wants disposed.
- He met the seller a week after and had the purchase agreement signed on the same day!
- Other key takeaways from this episode
- How he overcame fear and frustration
- The importance of having a mentor
- Why he wished he should have negotiated more
- The things he learned as a tribe member
- The book he is currently reading
- Key insights he wants to impart to wholesaling newbies like him
Just like any endeavor, wholesaling can be daunting if you are still a neophyte and still trying to find your way around. However, as long as you are not afraid to be vulnerable and you have the courage to act despite your fears, you will be rewarded handsomely!
- ListSource Website
- Profit First by Mike Michalowicz
- The ONE Thing by Gary Keller
- The Pumpkin Plan by Mike Michalowicz
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Tom Krol: Okay guys, we have an amazing guest for you today. We have [Jomi 00:01:05] from Rockland County, New York who wholesaled the deal. He is a tribe member. He is a guest on this podcast and I am so honored to have him here. He’s a rock star. Came in, did a deal, actually, he did a deal with one of our other tribe members and he’s just getting started. I think that was his first deal that he’s ever done, so we’ll have to ask him more about that. But Jomi, are you there?
Jomi: Yes, Tom, I’m here.
Tom Krol: All right. It’s good to hear your voice. I know today we’re going to be deep diving one of your deals. I’m really excited about that. I know you made a nice big commission check on it and I know you’re fairly new to wholesaling. Before we deep dive your deal and we get into detail so that other people can also wholesale real estate, first, I just want everyone to know what wholesaling real estate is.
Wholesaling is a niche market in investing in real estate where you find a motivated homeowner, you put their home under an assignable purchase agreement and you assign that purchase agreement to a cash buyer. It’s very easy and it’s a fun way to make a lot of money in real estate. So Jami, our guest today, he just did a deal and he’s going to tell us all about it. We’re going to pick his brain. This is the no fluff, no BS zone, so we’re not going to waste any time, we’re going to get right to the meat and potatoes so that you can emulate his success and have the same success in your territory. So Jomi, are you ready for the hot seat?
Jomi: Yep, I’m ready, Tom.
Tom Krol: All right, let’s do it. Before we ask you about this specific deal, first just give, if you can, just a brief little introduction about who you are, what you do, how you got involved in real estate, and a little bit of background.
Jomi: Okay. So my name is Jomi and I live here in Rockland County, New York. I graduated in 2006 with an engineering degree in electronics and computers. That’s what I’ve been doing up until 2013, 14 period. And that’s when I made a big switch into real estate. [inaudible 00:03:04] of which avenue to go into because there was a lot of them like wholesaling, rehabbing, landlording. I did a lot of research in regards to that and finally decided to stick with wholesaling, to start with, and that’s how I joined the tribe.
Tom Krol: Excellent. Excellent. So you did a lot of research in a lot of different areas. Let me ask you a question. Out of curiosity, I know there’s a lot of people who are always investigating different exit strategies or investment strategies with real estate, why did you choose wholesaling out of all of those other investment vehicles?
Jomi: Compared to other investing strategies like rehabbing requires a lot of hoops to jump into in regards to credit and things like that and I didn’t have credit. Plus it just seemed like it will just take me a long time to find the contractors, deal with them and get the house ready. At that point it seemed like a whole big thing to do.
Tom Krol: Rehabbing, it can be a bear. You have to have credit because you’re going to have to borrow money or use your own and you have to buy the home. There’s a lot of risks. You have to know what bullnose granite is and how many inches thick it has to be and what the cost, like no, no, no, no, no, that’s not for me. So good stuff.
All right, so you choose wholesaling and I know you get into the tribe and we do a deal. I want to talk about the deal. So just so everybody knows, the first question that everybody’s going to want to know is how did you find the deal? That’s the first thing we want to ask you, so anybody else out there who’s listening can copy you. Tell us a little bit more about the front end of how you actually came across this homeowner.
Jomi: So for this deal I Went on listsource.com and I didn’t pull a lot, but I pulled 1000 names, and it was an equity list, and it’s one of the postcards that’s available for us, and I sent it out pretty much I gave the list to the postal company and they send it out.
Tom Krol: Okay. So you pulled an equity list and those vendor used was listsource. So, you pulled it for one particular county in New Jersey or just for like how did you select your area?
Jomi: Yeah, I actually sent it to the whole County actually. Yeah.
Tom Krol: Okay. And you said a thousand pieces?
Jomi: Yes. 1000 pieces yeah.
Tom Krol: Okay. So what did that cost you?
Jomi: I think it was less than, just to send all the postcards. I think it was around $433 if I’m not mistaken.
Tom Krol: $433 that’s pretty specific. That’s good. Okay.
Okay. So all right, so you get the postcards and then phone calls start to come in. Tell us a little bit about the seller and what happened when he or she called in and what that was all about.
Jomi: So the seller called in, I think about on the second day of my mailing. And so he was a motivated seller. So what happened was that his brother was, you know, he gave the keys off his house to his brother to do rehabbing and to do some rehab. But what happened was that, you know, he was actually not able to complete the task and he just let it go and unfortunately he actually passed away.
So what happened was that the house was just left by its own and you know, he just wanted to get it off it and like as soon as possible, you know, he just wanted to get this out of his hands.
Tom Krol: Got it. Okay. And so the house was vacant?
Jomi: The house was vacant. Yeah.
Tom Krol: Got it. Okay. Did you ever meet the seller or no?
Jomi: Yeah, I met, I met the seller. He was away on the day he called, but then we set up an appointment on that day. No, I’m sorry. The next week actually.
Tom Krol: Okay.
I met him up for the next one.
Jomi: Now when you met him, did you bring a purchase agreement with you and did he sign it that day?
Tom Krol: Yeah, I had a purchase agreement printed out and so I took it with me and right before I left I said, you know what? Let’s get the purchase agreement out of the way. Let’s get the contract out of the way. I think that’s what I said.
Jomi: Now had you done a deal before?
Tom Krol: No, this is actually my first deal ever
Let me just, cause I want to, you know, how did you get over that hump? Were you nervous? I know a lot of people who are listening in, they haven’t done a deal yet. You know, what did that feel like? Did you have to like fight back fear and were you worried that he wouldn’t sell it or you wouldn’t know what you were talking about or what did all of that look like?
Jomi: Yeah, all of the above.
Tom Krol: Yeah.
Jomi: Check, check.
Tom Krol: Okay. Okay.
Jomi: And I think, you know, I wasn’t even ready to go, actually. I just wanted to, I you know, go through all the shiny objects, but then, [inaudible 00:07:45], but you kind of pushed me. You said I need to see some failures, man. You got to go.
Tom Krol: Oh, did I say that?
Oh good. Okay, good. So we had a coaching call.
Jomi: No, no, so you said it on the tribe.
Tom Krol: Oh yeah. So you know what you’re saying right now, and I just want to pause for a minute so everybody can hear this. It’s like, getting started is so important that there is no such thing as failure. There’s only results.
We learned this from Tony Robbins and Jim Rowan and other mega stars out there. If you know the fact that Jomi was scared, he didn’t really know what he was doing, but he just picked himself up and he went to the house and he did it anyway. It’s so critical. This is such like, what are the differences between the people who do it and the people who don’t do it? It’s this right here, it’s getting out there, being vulnerable, taking risk, taking charge, being scared, and just facing your fear and running towards your fear and you know. Was it bad or was it horrible? I mean, did the seller get upset and or was it just really much easier than all the worry and fear that you had?
Jomi: Yeah, it was horrible.
Tom Krol: Okay. Okay.
Jomi: Because the property was not, not in great shape. I walked in and I told him like I was stepping into Iraq or something, you know?
Tom Krol: Right, okay.
Jomi: The whole thing was just a big mess.
Tom Krol: Got it.
Jomi: And that just kind of, you know, elevated the stress.
Tom Krol: Sure. Okay.
Jomi: But you know, I got it signed and you know that. So that’s when I felt a little bit relaxed.
Tom Krol: Good. So you get there, it’s not as nice as you thought it was going to be. It was in worse shape. And then I guess, did you go there with a number in mind of what you wanted to put the house under contract for?
Jomi: So I actually a number from the center before I went there. I didn’t do a lot of negotiations thinking about it right now. I should have, but yeah, he said he gave me a number. It was like 150000 actually.
Tom Krol: Okay, got it. So you’ve got the house, you’ve put the house under contract for 150000.
Tom Krol: Okay. And I guess you have a buyer now, so you send the deal back out, the buyer picks it up. So everyone wants to know how much money did you guys make on that deal?
Jomi: So we made a 14000.
Tom Krol: All right, excellent. So 14000, phenomenal, how much time did that take you?
Jomi: So this one actually took a while because of the fact that the house, like I said, the house was not in a great condition.
Tom Krol: Okay.
Jomi: Took about, I think I would say two and a half months. 82 days. Or something like that.
Tom Krol: Oh wow. Okay. So that’s longer than usual. Okay. Yeah. I know in New Jersey you have that certificate of occupancy issue, so yeah, congratulations on that deal. That’s a fantastic deal.
So that’s awesome. Now when what happened with the title company in the closing, cause that sounds like a long closing. I mean what was the, are there any tips or tricks or things that you walked away with learning from that first deal?
Jomi: Yeah, I mean there was a little bit of a process learning, not learning process, but there was a process learning in that we couldn’t assign it before the contractor went in the house and put the floor joists and things like that. So we had to actually have an agreement with the seller saying that, you know, we are going to buy the house but we just have to get in and get this done just so that we can have the inspector come in and give us a go, you know.
Tom Krol: Okay.
Got it. Okay. Excellent. So, so easy. I love it. So easy peasy lemon squeezy. And I know we were talking right before the podcast started and you said you were kind of going through Profit First, which is a great book by Mike Michalowicz, which I’m a huge fan of Mike and he’s actually going to be on this show very soon here in the next week or two. And I’m really looking forward to that. So how are you finding Profit First? Cause I know now you have some money to work with. So how, how are you finding that book as far as doing your finances with that?
Jomi: Yeah, so I am actually reading that book right now and it’s so far it’s great. Book is really funny. And you know, before reading that book, Tom, I would say that, you know, you don’t really have a good grasp on what’s to come in the future. You’re just making a little bit of money here, but you don’t know what it actually means. You know you have to spend a little bit on marketing but you don’t really have a structure to it.
Tom Krol: Right.
Jomi: Because I started reading that book and now I can kind of foresee where it should go and you know, things like that. It’s kind of like when I joined the tribe, you know, I didn’t really know what’s in there. I know that I was going to get a deal, but I didn’t know that I was going to get trained on AVA. I was going to get trained on an acquisition manager.
Tom Krol: Right.
Jomi: It’s all great. No one knows these things, you know, you just-
Tom Krol: I love it. I love it. Well, I’ll tell you, you know, the great thing about Profit First for us is that what it really teaches you to do is it literally means profit first. And so often as entrepreneurs and business owners and founders and visionaries and creative people, what we do is we have money come in and then we have all of our expenses and then we’re not left with any profit or very little at the end.
What Mike Michalowicz teaches in Profit First is it is sales minus profit equals expenses rather than sales minus expenses equal profits. So what we do is in this book is, is sales first, then you take out your profit and then you have your expenses. Whereas before we read the book we were doing making our money and then we were minusing our expenses, and then we were leftover with profit, which very often wasn’t as much as it should have been.
So I love the philosophy of the book of putting profit first. It’s something that my dad used to teach me when I was a kid, which is, you know, always take money out of your paycheck and put it away. And that’s what Profit First is really forcing you to do. So I love the fact that it teaches you how to manage your expenses through what’s left over after you take your profit rather than allowing the expenses to manage your business. So I really loved the book. I’m a huge fan. Anybody out there who’s listening, if you are interested in, in that subject, absolutely. 100% check that out.
So excellent. So good. Good, good. So I appreciate your time today reviewing this deal with us. I know you know it was a quick deal, but I just wanted to get the good news out there, but before I let you go, anything that you would suggest to anybody who’s just starting out, if they are interested in wholesaling, anything that you struggled with and what helped you get over it or what would you suggest to people who are kind of just brand new and green to this?
Jomi: Yeah, absolutely. Well, the one thing I would say is the same thing that I’m kind of learned in the beginning is that when you start with real estate, there’s a lot of different avenues to go into, there’s lot of different channels. But you know, if you don’t pick one and stick with it, then it’s not going to come into fruition.
But at the same time you also need a need somebody to teach you how to do it. You can’t really do it on your own. Even in my case, you know, I was just, when I was starting out, I just started going to New York and tried doing stuff over there. But you know, that was just the basics that I can, it was not the best place to actually start for me. So those kinds of things you can’t really know unless there’s someone who’s done it before who’s much more knowledgeable in this kind of…
For that, I would say that, you know, they need a great mentor and I’m just glad that I got to be a part of this tribe because I learn a lot every single day from you Tom. not only that, you know, when people join the tribe, they don’t really know that they get trained in not just learning wholesaling that you’re trained in how do I hire a VA? How do I hire acquisition managers? Start a business?
Tom Krol: Yeah. I appreciate that and we’re happy to have you in the tribe. It’s a blessing to have you here. But you know, I couldn’t agree more. The, first thing that you said, which is so key is it’s the one thing Gary Keller talks about this in his book, The One Thing, laser focused and focusing the beams of the sun into one direction. It’ll just create a laser that can cut through anything.
And The One Thing is a book by Gary Keller. I would definitely recommend that talks exactly about that. There’s another great book. It’s another great book actually by Mike Michalowicz, what’s called The Pumpkin Plan, and he talks about the one thing also, which is you have a vine of pumpkin’s and the pumpkin farmers who grow those great big pumpkin’s and they win those contests, they look at the vine and they cut off the other pumpkins that are growing and they just allow that one pumpkin to grow. So I couldn’t agree more with you.
And as far as mentorship, I have a mentor. My mentors have mentors. Our tribe members have multiple mentors. I believe in mentorship 110%. Mentorship is key. It’s not an information problem. That’s not Why you hire a mentor. That’s not why you’re not doing deals. It’s not an information problem. It’s an instruction problem.
Information is free. You don’t need a mentor to have information. So it’s instruction over information. I couldn’t agree more and good stuff, brother. So I know we’re going to see great things from you. So I want to have you on the show again on your next deal. It sounds like a deal?
Jomi: Yeah, that sounds good. I hope so.
Tom Krol: Awesome. Jomi, well, I’m going to hold you to that so God bless and it was great having you on the show. Thanks very much.
Jomi: Yeah. Thank you so much Tom.
Tom Krol: All right. All right guys, that was Jomi in New York. He is a rock star. Just getting started, just did his first deals, overcame fear, overcame frustration and I know he is going to go straight to the stratosphere and he’s going to be one of our tribe members who just absolutely crushes it. I have no doubt.
I’m super excited to see the deals that he’s going to have in the future so we can have him in the podcast again very soon. If you are interested in creating a wholesaling business and getting started in wholesaling, go to wholesalinginc.com that’s wholesalinginc.com. Fill out an application to get into the tribe. If we like what you have to say, we might actually invite you in to be a tribe member. Very, very exciting.
I’ll talk to you guys soon and we have some really awesome guests lined up and more deals to review very soon so you can emulate their success and have your own success. All right, guys signing off. Talk to you soon. Bye bye.