Today’s guest has only been wholesaling part-time. However, it has not hindered him from closing 8 deals (and a 9th one in the works) and earning a total of $44, 200 in assignment fees!
Omar Messallam is a tenacious and proactive rhino from Norfolk, Virginia. He joined the tribe just December of 2017 but he’s already closing one deal after another and shows no signs of slowing down.
If you are wondering if you can earn a lucrative income even if you’ll just wholesale on the side, wonder no more. Omar’s story is a testament that it is possible as long as you stay proactive and consistent!
- Omar did a bit of Facebook advertising and got a referral from one of the homeowners he was able to talk to.
- While the seller was motivated, it took them quite sometime to agree on a price.
- Since middle of December 2017, he made a total of 25 followups and 5 phone calls until he was able to close the deal in April of 2018.
- He got the property under contract for $7, 000 and sold it for $15, 000. That’s an $8, 000 reward for staying proactive and persistent!
- Rich Dad’s CASHFLOW Quadrant by Robert Kiyosaki
- Sell or Be Sold by Grant Cardone
- Wholesaling Inc – Testimonials
- Wholesaling Real Estate Summit 2018
- Omar’s Facebook Page
- Omar’s Instagram Page
- Omar’s Twitter Page
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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Cody Hofhine: Welcome to another episode here on Wholesaling Inc. My name is Cody Hofhine, and I will be hosting today’s podcast episode. And today we have a rock star Rhino that has been in the tribe for six months that’s going to be joining us. Now before I get into this and introducing our guests, for those that might be new to the podcast or just beginning their journey learning about wholesaling real estate, that’s exactly what we’re going to deep dive today. We’re going to talk about what wholesaling is, simply just quick breakdown, easy scoop on this. An easy definition is just the art of finding deeply discounted properties that you can then turn for huge profits. So we have individuals that could make two grand, five grand, 10 grand. We’ve seen people make $90,000. It’s totally up to you on what you do with your wholesaling, and how you choose to make your profit on the end.
Some people choose the fix and flip. Some people just keep them for rentals. But the secret is finding these deeply discounted properties that are most times off-market properties. And that’s what we’re dedicated here on this podcast to do is help you find those deeply discounted properties because every good real estate deal begins with that deeply discounted property. So today we have Omar [Masalem 00:02:15]. I hope I said it right. Did I say it right?
Omar Masalam: Masalam.
Cody Hofhine: Masalam. Gosh, dang it. We just asked you for it. Omar Masalam, and he currently lives in Norfolk, Virginia. He started wholesaling in Florida, and joined the tribe back in December. So it’s been a little over six months, but this rock star has already closed on eight deals since December. He has a ninth one that is going into closing. It’s a probate deal, so it’s taking a little bit longer. And so what we’re going to do today for those that are listening, get out a piece of paper and a pen, and jot down the gold nuggets because Omar’s going to open up all the books right here.
He’s going to show you everything step-by-step what he did to find this deal that we’re going to deep dive so that you can now implement some of these action items, put it into work, put it into progress, and see what kind of return you get on that time, on that investment. So Omar, my man, let’s cut through the fat and go right into this, and let’s help people get closer to getting their first deal or maybe their next deal. But tell me a little bit about yourself, and then let’s deep dive this deal.
Omar Masalam: Absolutely. Cody, thank you for having me on the show.
Cody Hofhine: It is an honor.
Omar Masalam: Thank you. Thank you. I joined the tribe in December of 2017, and kind of what got me to that point was I really wanted to get in real estate investing, and I heard enough people tell me, “You should start with wholesaling because that’s a great, great segue.” And so that’s what I did. And my first deal I actually did before I joined the tribe, and it was just pure grit, and I was driving for dollars looking for properties. I would spend four, five, six hours driving around when I was in Pensacola, driving around town, writing down all these properties, and I would turn around and go home and spend like five or six hours writing letters to every single property-
Cody Hofhine: I love this.
Omar Masalam: Put the postage on, send out like… I think the first mailing I sent out probably 40 letters, and I got three or four phone calls back, had no script in place, had nothing in place. And I remember that first phone call that came in, I was just super nervous and talking to a motivated seller for the first time. Didn’t get a deal out of that one, and in fact, I did another round of those letters, didn’t get a deal out of that, but I got some reps and exposure in front of sellers. And then I was doing the driving for dollars, I found this lot that had a dilapidated For Sale by Owner sign in the outskirts of downtown Pensacola. So I called the seller. Doesn’t call me back. I call him again a week later. He wants $5,000 for the lot, and I was able to negotiate him down to 4,000, and-
Cody Hofhine: This was the first deal we’re talking about?
Omar Masalam: This was my first deal. This was in about October, so about two months before I joined the tribe.
Cody Hofhine: You’re just out there feeling your way forward, like I’m going to call this guy. I don’t know what I’m doing, but we’re sure going to make it up. Let’s do it.
Omar Masalam: Yeah. So anyways, I put the property under contract for 3,500, and my thinking, I’m like, “What could go wrong? I mean, worst case scenario, I buy this piece of land for $3,500. That’s not the end of the world.” So I put it under contract, and then I market it on Facebook. I’m like, “Hey, I’ve got this assignable contract for sale for this lot,” and I found a buyer for 4,500. So my first wholesale deal was for $1,000 from a dilapidated For Sale by Owner sign, and it was great confirmation. In my mind I’m like, “Man, this works. This is awesome,” and that closed in December a few days before I joined the tribe.
Cody Hofhine: That is awesome. That is awesome. So you got a good taste instantly. Now, what I love about this is the fact that you just went out and took action and that’s all the difference. For everyone listening out there, you don’t want to get caught up in over-educating yourself or just simply even to… I don’t want to down this podcast because it’s our podcast, it’s our baby. But if all you did is just listen to our podcast, it’s not going to produce results.
You’ve got to go out there and implement what you’re listening to, what you’re hearing. Some of these action items. And there’s some gold nuggets already that you can already put into action that Omar has just shared with you, and that is get out there and just go take action. He didn’t know exactly what to do, but he found driving for dollars, old For Sale by Owner sign, called on it, didn’t give up after the first phone call, called again a week later, and here he is. His first deal, $1,000 for… What would you say? If you had to give about how many hours you put into that total, what would you say that looks like?
Omar Masalam: Just that deal specifically, the driving plus the phone call, and then the appointment, and then meeting the cash buyer, probably about two and a half hours.
Cody Hofhine: Two and a half hours for 1000 bucks. A little under about $500 an hour. That’s unbelievable. That’s amazing pay. That’s what can happen, and this is real stuff. So I love that that got you absolutely excited, yoked, you joined the tribe, and here you are eight deals into this. Let’s go right to the meat and potatoes, and let’s deep dive this deal that we’re going to talk about. What I want you to do is break it down so granular where we can truly help individuals that are listening, give them a shot right now to start taking action. So how did you find this lead from the deal that we’re going to talk about?
Omar Masalam: Absolutely. So this one, I was doing a little bit of Facebook advertising, and I got a lead from Facebook for a homeowner. She had a piece of land she wanted to sell, and she wasn’t quite ready to sell. But she gave me a referral and she said, “Hey, this lady, house in her family, had just burned.” It was a concrete house, so you know, it was still structurally sound. But there was a huge fire and circumstances. They needed to sell the house. She’s like, “Give her a call.”
So the lead was a referral from Facebook, and I called her on my Google Voice because I was still using the archaic set up before I was fully integrated with the tribe. And I called her, and I met with her, and she was like, “Yeah, we need to sell.” At the end of the day, we didn’t arrive to a decision, and so I follow up with her. We were having trouble kind of nailing down a price that made sense. And this was still in December when I was barely joining the tribe and still kind of getting my traction. So all I knew at that point was she’s a motivated seller, she’s got property for sale-
Cody Hofhine: What made you look that she was motivated. I guess, what were the signs? I know it’s burned down, but I mean, was she telling you anything over and above the fact that you knew that there was fire damage, or there’s this going on at the house? Did she specifically have anything that she was saying that let you know, “Man, not only is this home distressed, but she’s motivated to sell this home?”
Omar Masalam: Yeah, absolutely. So it was her grandmother’s hous, and her grandmother was very ill, and so I was there to try to find a solution for them. And they wanted, long story short, they didn’t want the liability on their hands if she did pass, so they wanted to have some funds readily available in case they needed to take care of the passing. So, that was one thing they needed help with. Plus the house needed probably $20,000 in repairs just to be habitable, not even fully repaired, so. And they didn’t have those funds.
Cody Hofhine: So something that most likely couldn’t have been put on like the MLS or listed by it?
Omar Masalam: Absolutely.
Cody Hofhine: Well, I mean, it could be listed to it by an agent for cash sales, so I don’t want to say that, but traditional retail buyer most likely couldn’t get a loan on the home in this condition.
Omar Masalam: Absolutely. Yeah.
Cody Hofhine: Perfect. So here you are talking with them. You find out their why, and they are motivated, they want to sell. And is this all done over the phone, or were you now sitting in person with these individuals? Did you meet face-to-face? What did that look like?
Omar Masalam: Initially it was over the phone. Right? That was the first contact, and then we met at the house.
Cody Hofhine: Okay.
Omar Masalam: So that was day zero and day one. From there it was probably another week before we spoke, and we went back and forth for the next two and a half months, where I’d reach out to her, and then she stood me up on a few appointments, or I’d say, “Okay, we’re going to meet at McDonald’s today. We’re going to meet here,” and we both agreed to it, and she didn’t show up. But that was okay. I kept following up because the home was still there.
Cody Hofhine: Was the hesitancy just to kind of get a background? Was it because, I mean, they knew they wanted to sell but they weren’t quite ready to sell, or is it more of a, “I’m trying to get multiple offers,” or “What you are initially offering me isn’t enough?” What did that look like? What led to this long of a close?
Omar Masalam: Yeah. They didn’t shop me around or anything like that. I think it was them just dealing with… Because there’s multiple family members involved, but I was only dealing with the one individual. And the conclusion was we went on another appointment at her personal house, not the distressed property. And I was there for about three and a half hours and just listening the whole time. And she was expressing the different situations that she was up against with her family members, and selling the house, and all the responsibilities on her plate. And so I just sat there and really just listened to her and tried to find the right solution. And then ultimately we were able to sign the purchase agreement at the end of that conversation.
Cody Hofhine: So the key things that I’m… I’m jotting down notes, by the way, because I love what you’re saying. And one thing that I want to bring up to those listening, listen at how he spent three and a half hours at this seller’s house, and the majority of the time listening. And I always use this as just a simple phrase or a simple joke is, “God gave you two ears and one mouth. Use them proportionately.” And so here you are doing a great job being a listener so you can try and truly hear what it is that they’re trying to accomplish so that at that point you can start to see if you actually are going to be a benefit or a solution to them.
Omar Masalam: Absolutely. And I’m looking at the purchase agreement right now. It was signed on April 2nd, and I remember the first contact was probably mid-December.
Cody Hofhine: Mid-December, and then it took until, you say, April to actually put a written agreement in place.
Omar Masalam: That’s right.
Cody Hofhine: If you had to give a number, because there’s so much value to those listening including a reminder to myself. There’s so much value in the power of followup, how many times, if you had to say from December to April, you had to have talked to this person at least X amount of times? What number is that?
Omar Masalam: Between the actual outbound contacts, texts, email, phone calls, I would say probably in the ballpark of 25. And then the actual phone calls at least five separate phone calls where I called, she picked up, and we had a conversation. But on top of that, every time I called and she didn’t answer, I’d leave a voicemail, or I’d send her a text. And it was never anything like… It was always positive, just trying to move the ball a little bit closer to the net.
Cody Hofhine: Yeah. 25-time follow up. At this point, she probably considers you family. You’ve talked to her a lot of times, met with her multiple times. Maybe she’s missed out on a couple of times that she couldn’t meet, but ultimately you stuck with it. You didn’t give up. You didn’t just throw it away. You stuck with it because you saw that you were going to be a benefit to this individual, put it under contract in April. To give them a breakdown, if the home was completely fixed up, what would it be worth? And then ultimately, what did you put it under contract for?
Omar Masalam: So I think the ARV of this house was around $49,000 completely fixed up. I put it under contract for $7,000, and then I turned around and sold it for 15,000.
Cody Hofhine: Turned around and sold… So hold on, this is good stuff. We’ve got to get the victory bell. So here we are. You end up putting this home under contract, distressed property at $7,000, and then from there you are able to assign this contract to another cash buyer that’s going to do all the rehab himself, right? Or did you rehab it?
Omar Masalam: I did not rehab it. I double closed to a cash buyer.
Cody Hofhine: Perfect. And if I’m making my math right on this one, you made $8,000 on this simple assignment.
Omar Masalam: That’s right.
Cody Hofhine: Oh, man, oh, man. Hold on one second.
All right, so here we have Omar going out there for a second deal. Now this may not have been your second closing because it took so long. It took you into April, but, my man, $8,000 is a great payday. And yes, this one took a little bit more hours than probably the one that paid you $1,000, but also paid you quite a bit more. What has it done for you since? I know you’ve now done… We talked about at the beginning of the podcast. You’ve done eight deals. What in total of assignments and money made, what have you made on all those eight deals combined?
Omar Masalam: On the eight deals, $44,200 and some change, and with this ninth one coming in, I should be at about 55,000. And with this deal specifically, I was more proud of this just because of all the followup that went into it, and just seeing that success come out at the back, and not just for me. For the seller, too, because it was a huge weight lifted off of her shoulders, and I was able to solve that problem, and then ultimately the cash buyer was also able to improve the quality of that neighborhood. And hopefully, there’ll be a family that’s in there renting pretty soon once that house is all fixed up.
Cody Hofhine: That’s phenomenal. I look at this and I think of… Now are you doing this full time or are you doing it part-time?
Omar Masalam: Part-time.
Cody Hofhine: So part-time that’s probably even a better point to pin out to some of these individuals that might be listening is so many of us are, or were, trapped in a nine-to-five corporate America, and maybe they’re just looking for ways. And maybe it’s something that you only want to do on the side, and maybe there’s people out there, they’re saying, “Hey, I just want to do real estate on the side because I love my job.” We have plenty of students that have gone through the program that choose to just do it on the side, but this is a perfect example. Here you have a working income that you have a full time job, and on the side.
So again, this is more than the average American makes in a year, and here you are doing this part-time on the side, $55,000 in. Yes, there’s some marketing costs that’s got to come out of that, but this is looking like a great year for a part-time gig. And that’s what I want to make sure listeners out there, can you do it part- time? Absolutely. Here is living proof. Omar is doing it part-time. He’s not doing it full time. Now is this something in the future you’re looking to go full time, or is this something that you always want to maintain part-time?
Omar Masalam: Yeah, absolutely. I want to definitely build this into a business full time just like the way that you and Tom teach. And then ultimately kind of see what my options are at that point. I just finished the Cashflow Quadrant. I think you’re a huge fan of that book.
Cody Hofhine: Such a good book. That’s one of my favorites.
Omar Masalam: And Robert Kiyosaki talks about the only reason you build a business is to ultimately one day sell it, so that might be an option in the future. But at least now, after doing nine deals, I see the light going forward, and that’s an awesome, awesome feeling.
Cody Hofhine: Well, ultimately, to follow further along, Robert Kiyosaki, his whole philosophy, right, is how to ultimately now get to the point where you’re not trading your time for your money, where you can actually have a business that functions with or without you. Yes, you’re going to be a visionary and build up to the point where you’re still involved maybe with some meetings where you go in there and get the team built up, make sure they’re sticking to their plan, make sure they’re staying with their goals, make sure your acquisition manager’s doing what they need to do. Yes, there’s that involvement, but ultimately, where if you were gone for a whole month, that you could go to your bank account and see that money’s not going out, but that money’s still coming in, and that’s a beautiful thing.
And Robert Kiyosaki talks about that, and real estate ultimately ends up doing that. But business owners, first and foremost, starting a business that you own, but then getting to the point where it’s not you always trading your time for money, but then ultimately going passive, and hopefully cherry-pick some of your best deals and keep them for rentals for yourself so that you can ultimately have passive income coming in.
Omar Masalam: Absolutely. Absolutely.
Cody Hofhine: Okay, Mr. Omar, we always like ending our podcast the same way. You’re probably familiar and used to this. If you were to give a book, something that would help individuals that you said, “Man, I read this book, and it just changed my life, or it changed my mindset,” what book would you refer to people as a good book to read and why?
Omar Masalam: Well, in addition to the Cashflow Quadrant, I really, really like Seller Be Sold by Grant Cardone. It really helped going to public school and then college and whatnot, never really being exposed to sales and marketing, Seller Be Sold totally shifted that paradigm, and it was like you are in control of your income. You can really have as much as you want. You are uncapped. And it talks about ultimately everyone’s really a salesperson, but to what degree, and then as much as you want to sell, you can control your income through sales. And that was a concept that I never really explored until this past year.
Cody Hofhine: I love it. I love it. I love it. Now, looking back, hindsight, the vision’s usually 20/20, but if you were to start all over again and you had to start from ground zero, what would you do differently, or maybe what would you have done the same that would help listeners that are right at the beginning stages?
Omar Masalam: As far as wholesaling? Definitely sticking to one marketing channel. Like I said, I was doing Facebook, but because I was in the tribe, I stuck with the direct mail as well. Kind of the entry I made was I was already doing Facebook ads, and then I started with the tribe, so I was doing the direct mail. But if you can frame it in a way where you’re focusing on one marketing channel, it’s not necessarily just because of the money that it’s generated and your energy is focused into one channel. It’s also like your time. You’re not worried about whether it’s bandit signs, or online marketing, or whatever. Sticking with one marketing channel allows you to zero in 100% focused on where your efforts are going to go, and then ultimately automating that, and then adding in a second and a third and fourth.
Cody Hofhine: So true, so true. One bullet at a time. We call it the sniper approach, not shooting a shotgun where 10% of the bebees hit and 90% of the bebees miss. But that you’re singular focused on one thing. Get it up and running and get it fully automated. Put a system in place. Add your next marketing channel. So, awesome advice. I would highly recommend that. I second what he just said. That is sound advice and that is how people succeed. Some of the brokest investors I’ve ever met are people that had to shut doors, or close down doors, or close shop, it’s because they had too much going on all at once. So great advice. I love it. Omar, thank you so much for joining us today. It’s been amazing to have you share some of these tips, tricks, and gold nuggets that will help a lot of our listeners and that will resonate with them. So, thank you for your time today.
Omar Masalam: Absolutely. Thank you so much, Cody.
Cody Hofhine: Okay, Rhino Nation. You’ve heard another amazing episode right here from Omar Masalam. Did I say it-
Omar Masalam: That’s right.
Cody Hofhine: Yes, I got it right. Okay. You’ve heard another episode from Omar sharing his tips, tricks, and secrets of how he’s done his deals. It’s been amazing to listen how sound that advice is, and how sound all those principles are that that got him these deals, and how he’s consistently doing business. For those of you that are looking to grow your own wholesaling business, continue to listen to the podcast because that is a way you can learn these free tip tricks and gold nuggets, but also you can go over to Wholesaling Inc.com and go play around on the website. But one thing that might inspire you and motivate you to help build you up to let you know that you can do this also, is click on the reviews tab up top, and you’re going to see hundreds of movies of video testimonials from students that have gone through the course, but people doing it all across this great nation sharing how it’s changed their life, what it’s done for them, so it will motivate you to let you know you can do this, too.
Also, a reminder for each of you out there for those that are tribe members and non-tribe members, we have the live event coming up in October in North Carolina, in Asheville, so it’s October 15th, 16th and 17th, and to reserve those seats you can go on. So opening this up to also for the first time to non-tribe members, go over to wholesalingsummit2018.com. Again, that’s wholesalingsummit2018.com to reserve your seats so that you can join us in Asheville live with tribe members as well as non-tribe members. This is the first time we’ve done it, opened up to non-members, so we’re glad to have you guys come along, but book those seats. They’re going quick, and it’s going to be sold out as it has been each and every year. Until next time, we’ll see you in our next episode as we deep dive yet another deal. Take care.