Sean Cobelli has only been actively wholesaling for 2 months but he has already done something really impressive—he has closed 2 deals and earned a total of $22, 000 in assignment fees.
While he joined the tribe many months ago, he found himself constantly making excuses and not pursuing wholesaling. Things changed after he joined the Salt Lake wholesaling event. It was then that he decided to really give wholesaling a go.
If you are still unsure if wholesaling is something you can do and succeed at, this episode might just change your mind!
While his first deal has been challenging, it has also been very rewarding for Sean. More than anything though, it has shown him than wholesaling is something he can really do.
- He got a lead from the direct mails he sent to his absentee with equity list.
- He got in touch with the administrator of the property and was able to put the property under contract for $11, 500.
- A buyer bought the property for $16, 000 and Sean earned $4, 500 from the deal.
Sean believes in the power of consistent marketing and has since put some of the money he earned in marketing. He has another deal in the pipeline that will net him another $17, 500. With determination and consistency, we expect him to become a rockstar rhino in no time!
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 live episode here on Wholesaling Inc. My name is Cody Hoffman and I’ll be hosting today’s podcast. And today we have a rock star rhino that’s getting all ready to ramp up his business for 2018, today we have Sean Cobelli, he’s from Pittsburgh or he’s in Pittsburgh and he’s been actively wholesaling for two months. Now. Here’s something that’s really cool about this. In the two months that he’s been actively doing this. He now has two deals that are going to closing that combined are going to pay him $22,000, now I’m not going to deep dive the numbers on each deal, but we are going to deep dive one of those deals on this episode today.
So those that are new listening for the first time to this podcast. What this is, is we’re talking about wholesaling, specifically wholesaling real estate and wholesaling, simply the art of finding deeply discounted properties and then turning them for profits. And so this podcast is dedicated to help you take massive action so that you can also wholesale real estate in your backyard. So let’s get right to it. My man, Sean, how the heck are you buddy?
Sean: I’m good. How are you doing Cody?
Cody Hofhine: Good, good, good. I [crosstalk 00:02:01] Oh dude, it’s our honor to have you on the show. This is awesome stuff because it’s your story. It’s stories of people doing it, of taking action, going out there and wholesaling that actually inspires this great nation of people, maybe that aren’t doing or maybe that are a little bit scared to do it. It inspires them, it helps them, it gives them hope, let them know that you can do it. And so your stories that add value.
Sean: Okay, I wasn’t sure, so…
Cody Hofhine: Yeah. Well tell me what got you into wholesaling. Maybe that’ll be a good background for people. What were you doing before you got into wholesaling?
Sean: Yes, so I’ve got that engineering analytical background where I look at hills and I’ve got to do everything to the ninth degree and… which is just the absolute opposite of what everything the tribe is about. So, that was a huge hurdle I had to get over. I was in heavy construction management down in New York city for a couple of years and it was awesome.
I met a lot of great people. I had a really good time down there. It’s experiences that not many people my age are able to go through. But at the same time I always had the real estate bug. I wanted to get into it. I didn’t know how. And one thing led to another, somebody referred me over to Wholesaling Inc with Tom Krol and the gang over there. And so eventually after Darren convinced me for four straight months of calling me, ‘Sean, you got to get in, you got to get in, you got to get in’. Eventually I said, all right, I’m doing it. So I signed up, went through all of the modules and guess what I did?
Cody Hofhine: Oh, lets hear it, lets hear it!
Sean: I didn’t do anything.
Cody Hofhine: So you got into the program. What made it so… because this is awesome. Was it because of the over-analyzing? Was it that engineer mindset that was crippling you from taking action or what was it?
Sean: It was excuses. It was a lot of, I work a full time job, I’ve got a long commute, I can’t do this on the side, I thought I could, I don’t have it in me. And I just kept making excuses after excuses. And so I let it get to me and I continued my job and I just kind of forgot about it. And I said, I’m never going to get into real estate. I guess it’s not going to happen. So-
Cody Hofhine: What changed? Or where was the changing point? What… because here you went maybe a year without even doing any action at all. And now in two months you started taking action and you’ve already got two great deals going to closing, which congratulations. But what changed?
Sean: So I went to the Salt Lake city event. I said screw it. And I had no idea what I was doing. I didn’t know anybody. I wanted to go meet the people out there and say, is this the real deal or not? And I can say without me knowing anything other than the modules, I went out there and I was like, Oh my gosh, this is incredible. I’ve got to get in this.
So I made it my goal. I said, the moment that I can move on from my job, I’m going to do it. So that’s what I did. And I think, eight months later or something like that, I was able to do that… and moved out here to Pittsburgh and it coincided right with the Orlando event, moved out here, got all my stuff together and then flew down to Orlando. Everybody reiterated everything that I talked about. Saw some old buddies and they asked how I was doing and I said I’m not doing anything still.
And then took back all that information and now I’m actually applying it. And the big thing that I learned was, you don’t know what you don’t know until you start something. And you don’t know how long something takes until you’ve actually started. And I learned that a lot in the construction industry and it really applies to this big time, so…
Cody Hofhine: Awesome. Well let’s get into it. Let’s get right to the meat, potatoes. Let’s get to the point what everyone wants to hear, and that is how did you do your first deal? And then ultimately what kind of money you’re going to make. So we’ll save that money till the very end, but let’s talk about it.
So you’ve got two deals in closing, we’re going to specifically talk about one and there’s something unique about this that makes it very tough, you said, which is cool. So let’s go right into it. Where did you find this lead? What were you marketing with? How were they able to get in contact with you?
Sean: Yeah, so my main point of marketing is it’s all direct mail for now, laser focus. I’m just going to do direct mail. And it works. I had no idea it was going to work until then. I think I was doing a thousand a week back then and I’ve ramped it up since-
Cody Hofhine: Yeah. How many mail pieces are you doing each week.
Sean: Now I’m doing between 1500 and 2000 a week-
Cody Hofhine: Every single week. Okay.
Sean: And I am inundated with calls and it is more leads than I can handle and that’s a good problem to have. So…
Cody Hofhine: That’s awesome. So, when you send out this postcard, 15 to 2000 pieces a week. I mean is it… because here’s the best part I want all of our listeners to understand. Why is it that you choose to go consistently marketing through weekly versus just shooting everything out in one week? What’s the secret behind that?
Sean: Oh, I mean you need to have consistent leads coming in so that you can go on consistent appointments. You need to go on a certain amount of appointments each week. You need to be talking to a certain amount of people each day and that’ll convert ultimately to a certain amount of deals you can produce. I don’t have [inaudible 00:06:53] yet, but I’m working on it.
Cody Hofhine: No, but this is perfect. This is exactly what they need to hear because even at the beginning stages, I mean here you are two months into actually taken action with wholesaling and you’re already nailing it and everyone needs to hear that wants to get into it, that if you want to be consistently making money, then it all starts with consistent marketing. It’s not shotgun everything all out at once. It’s not shotgunning your whole list out all in one week. It’s doing the sniper approach. It’s being very specific and doing it every week, sending the same amount of postcards out, staying consistent. Because if you can consistently mail, that leads you to consistent phone calls, consistent phone calls is consistent appointments, consistent appointments is consistent offers, which consistent offers leads to consistent contracts, which leads to consistent payday. So I love it. I love what you said. I’m glad you said that because there’s so many people-
Sean: And it varies from market to market, obviously like a thousand mailers in one market might be a lot versus my market or 2000 might be appropriate or 500 might be approached with different markets. Don’t feel like you have to send out ridiculous output. The phone calls start piling up. You have to just get that first mailer out and make it automated so that it’s… The guys in modern postcard do a really good job. You could just send out your list and say, I want to send this out over the course of the next month. Please send it out. And they do it.
Cody Hofhine: That’s awesome. Okay, so let’s go. So you got it through postcards, sending out direct mail. What lists were you mailing to?
Sean: This was absentee with equity. So this particular case, there was a gentleman that lived at the property, he was a hoarder. He passed away, and he didn’t leave a will. And so now you’ve got an abandoned house with a ton of crap in it and about 30 people that have access to that property that could potentially get paid. I forget the terminology for it, but anyways, eventually they made an administrator of the estate. I got ahold of that- [crosstalk 00:08:48]
Yeah, I got ahold of that guy. And he said, look, it’s a huge mess. I hate dealing with my family. Just take it and I said okay. And so he wanted, I think 16 at first and got them down to 11 five and then ultimately that’s what I was able to sell for. So technically he was on the money.
Cody Hofhine: Okay, so let’s hear this. Let’s break it down yet another step. So you could tell there’s motivation. You could tell there was frustration dealing with his family. He just wanted to get rid of it, its more of a pain than it was any kind of blessing to his life. He wanted to get rid of it.
So everyone listening to this needs to hear this. Cause I think so many times we get caught into this false thought that no one’s going to sell their home at a discount. And really it’s just a pawn shop on steroids. I mean they’re bringing over to say, Hey, I don’t want to deal with it and I don’t have the money to fix it up. In fact, it’s in bad shape. The person that lived in it before was a hoarder and so I can only imagine the mess that was left in it. And so he started at 16,000 did you go out on the appointment to make the offer or are you doing this all over the phone?
Sean: As soon as he said that number, I looked at the area, I mean [inaudible 00:09:52] were in the nineties to a hundred area. I’m going to do the one ten so I said, okay, right away, no matter what the house looks like, I’ve got to go see this. Booked it, went, one of the appointment was him and his brother that were there and they showed me around, it actually came with six adjacent parcels and I said, this is money. Now here’s the kicker. I show up and I don’t know where to park because it’s on the steepest road in the United States. It’s a 37% grade.
Cody Hofhine: Is it legitimately the steepest road in the United States?
Sean: I’m pretty sure it’s the steepest residential road. I don’t know what’s steeper, but it was insane. It’s so steep, Audi did a commercial in front of the actual house that I was able to wholesale in the summer. They took snow and they drove a car up and they took snowboarders down and skiers up and down. So that’s how steep it is.
Cody Hofhine: Unreal, so you’re on this steep slope. You pull up. Did this turn into just a home deal or home deal and land deal?
Sean: I was home and land, so it was with the adjacent parcels. I didn’t want to have anything to do with the parcels because they were even steeper than the actual house itself. But he said, dude, if you want this, they all got to be knit together. So, it actually worked out because there was a bunch of people that were interested in possibly putting up condominiums… knocking down the whole thing and putting condos on that nice steep area because it had a great view over Pittsburgh, so…
Cody Hofhine: That’s awesome. So you put the home and the adjacent properties under contract for $11,500?
Cody Hofhine: Holy smokes. So here you are looking at a great deal. From there you’re able to just market it for those that are maybe new to this, from what he did is he put this home and these properties under contract and then what he needs to do is you can either buy them yourself, close on them and then turn around and sell them on the MLS or through an agent or whatever. Or you can do, and on this case did you do an assignment?
Sean: I did an assignment, yup.
Cody Hofhine: Okay. So, or in this case, you can have these on a contract that’s assignable and then you assign your rights for someone to purchase this home or these lots in your place. And so you had this assignable contract, you assign it to a cash buyer. Ultimately, what were you able to sell that contract for?
Sean: Before I get there, let me tell you about the inspection.
Cody Hofhine: Let’s hear it.
Sean: So at the inspection site, I sent out to my cash buyers list and I said, all right, there’s going to be inspection at this time. And lets say it was 2:00 PM on a Friday. There was an ice storm the day before. So not only are these people going to see how steep this is, they’re going to see it in its worst possible condition under extremely icy conditions. So they all show up. And I showed up about an hour early just to shovel, just so no one got hurt on the way to the inspection. So people show up. And I think maybe 10 people came by and I’d say all 10 didn’t give me an inclination that they wanted it, all 10, its too rough inside and to steep. And after the inspection I sent a followup text to everybody, if you’re interested, let me know within 24 hours, the whole spiel. And he texted me right away and he said, let’s do the deal. The one guy that didn’t say anything…
Cody Hofhine: The one guy that’s quiet and you’re like, crap, I don’t have anyone that wants it. So he ended up saying, and was it just for a price that you were already asking or what was it-
Cody Hofhine: So what were you asking for this?
Sean: My asking was 15 so that’s where it gets interesting is for 15 and so I was like, all right, let’s do it. Met up with them the next day and he said, look, I want to put this in an LLC that I don’t have yet. And I’m like, Oh my gosh. I’m like, how do I do this? So you don’t know what problems you’re going to come into until you get there.
Cody Hofhine: Yeah.
Sean: So then I call the title guy and I’m like, can I do this? And he goes… I had already shooed him away and I was like, God, I don’t know what to do. Title guy didn’t answer. So I initially got ahold of them, he gave me the instructions. Then this guy, the Russian guy comes back and says, look, I want to sign with my partner. He’s in New York city, he’ll be back in four days. And I’m like, Oh my gosh. But he’s the only guy interested so I have to go with them. And I’m like, okay, we’re going to work together. No problem. But I kept it up on Craigslist. So I got another call of a guy who said, can I come see it today? I said, sure, not under assignment yet. Sure come see it. And he said, let’s do business today for 16.
Cody Hofhine: $16,000
Sean: like, Oh, you seem a lot quicker and easier to work with. Let’s do it. So I gave the Russian guy an opportunity to match and he didn’t. And so went with the new guy.
Cody Hofhine: Voila, with the new guy. Good work. So hold on. We’ve got eleven five contract and then you end around selling it for 16,000 making you $4,500.
Cody Hofhine: All right my man. [crosstalk 00:14:40] Hold on. [Bell rings] All right, so-
Sean: I’ve heard that bell a lot.
Cody Hofhine: And you’ve probably been waiting. You’re like I need it for me! No one else, I want my own! So you’ve got the victory bell ringing for you. Four and a half thousand dollars and you say you’ve already know what you’re going to do with it. You’re ready to put this baby right back into marketing.
Sean: Oh yeah. So I think that was a couple of weeks ago. So it’s already been put back into marketing and that marketing money. I’m getting phone calls while we’re on this podcast. So it’s pretty cool.
Cody Hofhine: Oh! We got to get off this podcast quick then. So this is good stuff. Four and a half thousand dollars. Lets kind of break it down. Obviously, there was a huge stretch where you took no activity. There was a… you did nothing, almost a year and a couple of months you didn’t do anything. All of a sudden you took massive, imperfect action. You’ve got this deal at close that made you four and a half thousand dollars. You’ve got another deal that’s going to make you the difference of… I mean you said you’re going to make $22,000 between the two deals. So where am I at? Is that a 17,005, $17,500 on another deal? That’s closing-
Sean: And I messed up on that one. I could’ve gotten way more and I messed it up.
Cody Hofhine: Oh, I love this, but here’s the best part. You don’t know what you don’t know. So everyone listening to this, he just made something to be perfect here. It’s odd. I could have made so much more money on that, but guess what? Next time he’s going to be that much better. You have to make the mistakes. You have to pay the price. These mistakes are what people would call failures are just future tuition for a future success. It’s just tuition for a future success. You’re going to be stronger, you’re going to be better because of going out there and making that mistake versus sitting down like an engineer and preparing a perfect plan, which never will exist. It will never be perfect. You’ve got to go out there and you just got to get dirty.
Sean: I mean, before I started this, I thought when you put a property under contract, it’s going to be a deal. Guess what? I put six under contract and only two have been deals.
Cody Hofhine: That’s massive imperfect action without a perfect hand. I love it. I love it.
Sean: Two were not deals and two completely fell through my face, so I didn’t know until it happened to me. So, now I know.
Cody Hofhine: And those failures will do nothing for you unless you learn something from them.
Sean: Oh I learned, I learned big time.
Cody Hofhine: I love it. So Sean, if you were to start all over again and you’re at square one, you know what you know now, what would you tell our listeners that are barely getting into this? What would you tell them? Like what would you have done differently? Or maybe what would you have done the same because it worked.
Sean: I think the biggest thing is find somebody either in your local market that’s a rhino or maybe in a neighboring market and take a weekend, go visit them. And you guys are awesome mentors to us, but you need that local mentor if possible, because I’ve been blessed to have one here and it just will pull… like Tom always says, it’ll pull you up to the next level because it’ll connect you to… okay, this list don’t even bother with this one. Hit this list and you know this area, don’t even bother hitting this area because the vast majority of all of my marketing dollars, guess what? I spent them on the wrong areas.
Cody Hofhine: And maybe the wrong list.
Sean: Yeah, so I had no idea what I was doing. So I am fielding phone calls for all these houses that are ARV 20,000. And so I’m just… they’re asking for 18 so I’ll make a waste of my time over there.
Cody Hofhine: That’s awesome stuff. Well this is good knowledge. So get with people, connect with people. Jim Rowan says it best. You’re the average of the five closest individuals you hang out with. Who are you hanging out with? Are you hanging out with successful people? Or not successful people? If you want to be a millionaire, go hang out with millionaires. If you want to be spiritual, go hang out with spiritual people. If you want to be a wholesaler, go hang out with wholesalers. People that are already doing it. So I love that. That words of wisdom. What about a favorite book? Something that you’re reading currently or maybe that you’ve read in the past that would be a value to share with these people?
Sean: Well, I mean this gets harped on all the time, but your first step when you’re wholesaling is you’re going to be talking to sellers nonstop. So, Never Split the Difference. Read it. Try, listening to it as many times as you can. If you’re not doing anything, you’re driving for dollars, whatever, listen to it because it gets you all amped up and you’re in an unfair advantage when you’re talking to these people after you listen to that.
Cody Hofhine: I love it. Never Split the Difference by Chris Voss. Guys get that book today. That book is solid gold when it comes to negotiation and how to talk to people. So great job on that. Well Sean, you need to get off this podcast and back on the phone because you’ve got leads calling [crosstalk 00:19:16] No, that is exactly it though. So I want to thank you for taking important time out of your day away from your wholesaling business to do this because I know there’s going to be so many people that this is going to connect with, it’s going to resonate with. So thank you so much for being on the podcast and I look forward to maybe a future podcast when you’ve got five, six, seven deals every single month consistently coming in.
Sean: Awesome. Thanks. Thanks for having me, Cody. Anyone who’s listening that’s struggling, feel free to reach out to me on Facebook or on the forum or anything like that. So thanks again.
Cody Hofhine: And we’ll have your name and all that stuff on the show notes where people can look at that. So thank you for offering that. Because I know there’s going to be people that will take you up on that, that will love to talk to you. So Sean, my man, you better get back on those phone calls. [crosstalk 00:19:58] That’s right. Rhino, rhino.
Now for everyone listening right now, thank you so much for joining this podcast. This is one that you can jot down gold nuggets galore, but remember the podcast, the power of the podcast doesn’t come from listening to it. I wish it was, but it’s not. The power comes from taking notes on one gold nugget, even if it just meant one, just one gold nugget and implement it. Do something that you’re not doing currently today and take action and put it into action and you’ll see that you’ll be one step closer to maybe your first deal. Or maybe it’s your sixth deal or maybe it’s, I’m only doing two deals a month, but I want to get to five deals a month.
Implement these gold nuggets that Sean just shared with you today and I’m telling you, it will lead you to deals if you will just take action and if you need some help and want some more inspiration, go over to wholesalinginc.com, that’s wholesalinginc.com, where you can click on the testimonials tab and you can see students doing this. You can see people, individuals just like you all across this great nation doing wholesaling consistently and it’s going to inspire you.
It’s going to give you hope, you can do this and if you want our personal help to help you do that for 2018 you can book a call, book a strategy call with our team and if we like what you have to say, we just might invite you to be part of the tribe so we can get to know Sean and all the rest of the rhinos. [crosstalk 00:21:13].
That’s right. Don’t hesitate. The power is in the tribe. That’s the big thing. You got people like Sean, you got people like that, that have been all over this podcast and so that’s one thing I love about the tribe. I’ll put this community up against any community. They’re amazing, amazing go givers and abundant mindset. Till next time. Guys, thank you so much for joining us. Download this podcast. Listen to it re-listen to it, jot down the gold nuggets and go take action. Take care guys.