Taking into account how Gabriel Negrete created a win-win situation out of his first wholesaling deal, you never would have guessed he failed at it the first time around.
Gabriel tried wholesaling a few years ago. After his first attempt didn’t go well, he decided to just throw in the towel and shifted his focus to acquiring rental properties. However, wholesaling caught his attention again a few years later so he decided to give it another go.
This time around, he was able to close a deal just a few months after becoming a tribe member. Not only that, he was also able to create a win-win situation, one that’s not only beneficial for him but for the seller as well.
So what was it that he did right this time around? For starters, becoming part of the tribe gave him access to the right mentors and resources so he stays on track. In addition, he was willing to go the extra mile, making sure he’s able to provide exceptional help and value to the homeowner.
If you want to listen to a steadfast rhino and a true go-giver, this episode is exactly what you need to hear!
- Gabriel sent out a little over 2,000 mails to the unknown equity list.
- From there, a seller called about 2 properties she owned that’s situated right next to each other. While he wasn’t sure if he can find a buyer at first, he was determined to help the homeowner out.
- After all was said and done, he was eventually able to sell the property, help the seller with the closing fee, and walk away with a $7, 000 reward for his efforts!
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. I’ll be today’s host and today, we have an awesome, awesome rock star that just recently joined the tribe and has powered his way through to his first deal and he’s going to break this down step by step. Now for those of you that are new to the podcast and just listening to this for the first time, we’re going to be talking about wholesaling real estate.
To help you understand a little bit about wholesaling, wholesaling’s simply the of finding deeply discounted properties that you can then turn for huge profits and the beautiful thing is we’re going to talk about a strategy where you can just simply either assign the contract or where you close on the property for just a short amount of time and sell it to an investor. So let’s go on through this.
For those that are new, welcome, glad you joined us. Get a pen and a piece of paper ready because we’re going to be sharing a lot of value, free content, free gold nuggets that will help assist you to get your first deal. So today we have Gabriel Negrete. He lives in Las Vegas, Nevada. He’s married, has two kids and he joined the tribe just a short few months ago in April of 2018 of this year. He just did his first deal. Now I’m not going to share the details. That’s what he’s going to do. This whole podcast is dedicated to help you understand step-by-step how he got this deal. So Gabriel, my friend, how the heck are you?
Gabriel: Good Cody, thanks for having me on the podcast, sir.
Cody Hofhine: You are so, so welcome and you totally, totally deserve it. You’re a go-giver. I love where this story’s going to go. I’ve heard a little bit already and I’m so excited for our listeners to hear just exactly how you did this deal, but then went over and above once this deal closed to serve this individual. So we’ll save that for the end, but my friend, fill us in. What got you involved and what got you interested in wholesaling?
Gabriel: I actually tried wholesaling, it was actually a while ago, way back in 2010, 2011 timeframe and I was doing it all wrong, completely wrong and probably doing some things I shouldn’t have been doing, not necessarily bad things, just things that could get me in trouble.
For example, I had a coach who was telling us to find properties and market the properties, get them under contract and market them as if we own them, which is really not something you’re supposed to do. You’re supposed to market the contract, the interest, not the property. We weren’t taught a lick about building a buyers list. We were just told, “All right. Find a property,” which weren’t really that discounted. So it didn’t go all that well. I kind of just gave up on it and I focused on acquiring rental properties, which I did.
Cody Hofhine: Mm-hmm (affirmative).
Gabriel: Me and a couple of partners, we’ve been acquiring rental properties for the last several years and I would say about January, February timeframe, I don’t even remember how it was that wholesaling caught my attention again. Now in this day and age in 2018, there’s a lot more resources, a lot more pages, a lot more resources at your disposal as far as learning about wholesaling-
Cody Hofhine: Yeah.
Gabriel: … some pages on Facebook, wholesaling included of course. I just started seeing people. I listened to podcasts, such as this one, Wholesaling, Inc., and other podcasts as well. It made me realize, “You know what? I’ve got a lot more information out there available. I’m a little bit more experienced as far as real estate goes because of my rental properties,” and I said, “You know what? I think I can do this, especially with the right direction.” I don’t necessarily need somebody to go with me and hold my hand. I just needed something to where I need someone to show me, “Here’s step one. Do step on. Once you do that, step two and so on and so forth,” and after doing a lot of research on Wholesaling, Inc. that’s when I decided, “You know what? I think this might be exactly what I need,” and as it turns out, this is exactly…
Listening to your podcast, actually, before even joining the tribe, I started doing some of the things already like building a buyers list.
Cody Hofhine: Nice.
Gabriel: … started going on Facebook, I went to real estate clubs. By the time I joined the tribe, I had probably about 50 buyers and I thought I was the best wholesaler in the world [crosstalk 00:06:47] then you guys tell me I need 150 I was like, “Oh, okay, I got it.”
Cody Hofhine: Oh no. [crosstalk 00:06:54].
Gabriel: Let’s work a little bit.
Cody Hofhine: That’s right.
Gabriel: Not as bad as I thought I was.
Cody Hofhine: That’s right. Well, that’s awesome. That’s awesome. And ultimately, kudos to you for coming back. Sometimes when people get a bad taste or it doesn’t do something for them the first time they try, a lot of people just throw in the towel and say like, “It’s not meant for me. It wasn’t good for me.” So kudos to you, man. You continued to push through it and get right back involved. It hasn’t been an easy journey. It’s not just all sudden you get into it, you get involved and you get your first deal. This has taken massive action and probably massive disappointment after disappointment, but ultimately, here you are, you’ve done a deal just recently and let’s break this down for our listeners so that as they are listening to this podcast, something they can take action on. So take it from the beginning. How did you market to find this deal?
Gabriel: Well, this particular deal came from, it’s called the Unknown Equity List on the Modules and Tom calls it the new list on there.
Cody Hofhine: uh-huh.
Gabriel: I went on there, I went on list source and picked up the list and of course it was a lot of names and I went in and sorted them by hot zip codes, just the way you guys teach and I mailed out maybe about, it was about a little bit over 2000. I Can’t remember the exact number and I got a call from a seller.
I was actually getting quite a few calls from it and she called me right around maybe June timeframe and her situation was, she has her house and she’s got another vacant house, which has a mortgage on it. Her and her husband own it. Her husband passed away in 2013, but the house is sitting there with a mortgage, can’t get no renters and needed a little bit of work.
So she called me and said, “Yeah, here’s my situation. I’ve got an empty house with a mortgage on it that’s just taken about $1,200 a month out of my pocket.” So I made an appointment with her. I went out and saw the house and this was a unique situation because the house she owns that’s vacant is right next door to her. So her two properties are right next door to each other. I went and saw the house and it needed a little bit of work. I would say, I have no idea how to really estimate, but once I showed it to my buyers, some of them estimated anywhere from 25 to 30,000 and work.
Cody Hofhine: Mm-hmm (affirmative)
Gabriel: The house, she had a mortgage balance. She didn’t know the exact balance. She was guessing around maybe 140, 142, 143.
Cody Hofhine: And what would the home, if the mortgage balance about 140 and if it was in fixed up condition, what would it been worth fixed up?
Gabriel: Well, here’s what I initially thought. I initially thought it was going to be about maybe 180, 185 on the high end.
Cody Hofhine: Uh-huh (affirmative).
Gabriel: So I really wasn’t sure if there was a deal there and I actually left disappointed and one, because I’m not sure there was much I can do for her and two, I wasn’t sure if I was going to be able to find a buyer for this. What I did is I have a few buyers that I’ve developed some relationships with that I’ve taken to lunch and just one of them runs a club. So I went over some of the numbers with them. A couple of them were like, “I don’t know if this is going to be a deal. I don’t know if there’s enough room,” not for me because those guys were flippers, but one of them said, “Maybe a buy and hold person, this could be a deal for them,” but one of my buyers, he actually said, “Yeah, you know what? This ARB here is closer to about 200,” and he told me, “Look, get it under contract for under 150 and I’ll be your buyer.” So I said, “Okay.”
I went back to the seller and the seller is a little bit older, so she wasn’t that tech savvy or didn’t really know exactly what the balance is. She knew it. She guessed about 143. So I said, “How about I do 142 and then at closing about three or four weeks from now, you’re basically just paying another mortgage payment?” And she said, “Yeah, that’s fine.” So I put it on 142 and like I said, I had a buyer immediately. As escrow went on, I got a call from a title company saying, “Hey, this person, her mortgage balance, she’s going to have to come out of pocket about close to about $3,000.”
I hadn’t actually talked to the seller about that. I never really reached out to her about that. The title company, the title agent, she just said, “You know what? She sounded like she was a little bit disappointed, but she’s willing to come to the table with that money.”
So as time went on, I said, I really felt, I said, “Man…” I kind of thought of her as, “what if that were mom in that situation? If this was my mom that I’m closing the deal on, what would I do for her?” So I told the title company, “Let me just redirect $1,000 to help her out with her closing costs.” And of course, I had to have her sign a paper for that approving redirecting the fee, and she was super thankful. When I went to her house and said, “Hey, I’m redirecting $1,000 to help you out with the closing costs from my fee.” She was super painful about it. She was like, “Oh, thanks so much. That does help a lot.”
Cody Hofhine: This is awesome.
Gabriel: “Just getting this second mortgage off my hands…” She said, “You don’t have to do that.” But I said, “No. I just wouldn’t feel right knowing that I made some money and I could easily help you out,” and I chose not to, but I said, “It’s just the right thing to do.”
Cody Hofhine: I love this. Gabriel, everything about this I love because wholesaling, and for those listening to this episode, please jot this down instantly what he just shared, is at the end of the day, he wants this to be a win win. He doesn’t want a seller to be frustrated. So he is able to give back and help in that closing cost to get her back to what he originally, right around the price, that they agreed on that she was going to come back with closer to a thousand dollars. This is awesome. This is a true go-giver and truly trying to make this a win, win for individuals. So ultimately, even doing that, it sounds like maybe you were going to make around $8,000, but ended up making about $7,000. Is this correct?
Gabriel: Yeah, the check was for 7,500 but 5 was my EMD coming back, so yeah, it was $7,000 net. That’s what I did on the deal. So yeah, seven grand was that first paycheck.
Cody Hofhine: You’re going to get the all natural victory bell from me as I still have forgotten to bring my victory bell from my garage that’s sitting there until I get in my new office. So here it comes, the all natural manual victory bell. Get ready,
ding, ding, ding, ding, ding, ding.
So Gabriel here,
Gabriel: I got my own that you guys sent me.
Cody Hofhine: Let’s do it. Let’s ring it.
Gabriel: Hold on, let me go grab it real quick.
Cody Hofhine: Ring it. This is awesome. We’ve never had a podcast where someone does their own victory bell in the background. So Gabriel is going to be our first individual…
I love it. There it is, my man. You’ve done something new for the Wholesaling Inc podcast. You rang the victory bell for yourself, which is awesome. Thanks for filling in my man.
So the quality behind this is the fact that you’re a Go-Giver, you’re looking for a win, win and you’re able to truly serve people and the quality behind this for everyone listening and learning to get into this, wholesaling is very little. In fact, very little to do with real estate as much as it is just solving problems. And so Gabriel found a very unique way to solve individual’s problems. So he markets for these properties. What list did that come from? Did you say? You said that was the high equity Unknown Equity List, the new list?
Gabriel: Yeah, it was the Unknown Equity List. That’s where it came from.
Cody Hofhine: So ultimately what he did is, he mailed out to this unknown equity, meaning typically they’re going to have equity. Well essentially it’s unknown if they have equity or not, but not many people are mailing to this list. They’re usually mailing the list that they know have equity. So this unknown equity list, which is a super great list, you’re getting phone calls from people that may have never been even talked to before by other investors. So it’s a smoking hot list.
But what’s good about this is if a home has equity now all you got to do is have the second piece to it, which is motivation. And some people are willing to discount how much they make because they want to get out of it so fast. They want the ease and the simplicity of doing the deal versus making all the money so they’re willing to discount the equity that they have in their home.
So Gabriel, you found a great way to find someone with equity in the home after talking to them, found out there was motivation, they wanted to get rid of it, and then you were able to come up with a win win solution and then serve the individual. Even though by contract she could’ve came to closing with around $3,000 or $2,500 you’re able to help her out and bring $1,000 from what you would have made to help her and truly make this a win-win. So my friend, this is powerful, powerful value that you bring to each and everyone listening to this podcast today.
Gabriel: Oh, one other thing I want to add.
Cody Hofhine: Yeah?
Gabriel: I was not the first person she called, she had talked to, I think about three other people and one of them was a big name franchise, not a wholesaling company, they’re actually flippers.
Cody Hofhine: Uh-huh (affirmative).
Gabriel: They got the billboards with the caveman on it.
Cody Hofhine: Yeah, yeah.
Gabriel: But yeah, she was one of the people that I came to see and she was a sole proprietor just starting out, newbie too.
Cody Hofhine: Yeah.
Gabriel: Of course, she doesn’t know that it was my first deal, but yeah, she just chose to do business with me. I just listened to her and even though I knew I wasn’t going to make a lot of money, like I said, I just knew, okay, there’s a problem here. The longer she holds on to this, the more it’s going to cost her, you know? So that’s why I said, you know what, I’m not going to make a whole lot. I was hoping to make a lot more than seven or eight, but you know, it’s seven or eight. It’s better than zero.
Cody Hofhine: That’s right.
Gabriel: But at the end of the day at a, she’s got a mortgage offer back that she’s had off her back for over a month now.
Cody Hofhine: That’s right. That’s right. Well, you know how we always end these podcasts to make it so that individuals continue to get value and quality. As you have gone through your life, and maybe even the short little while looking back in the short past, let’s call it the last six months, is there a particular book that you would recommend that would help our listeners that if they read it, it helped them with their mindset or help them in their journey with wholesaling? What book would you recommend to our listeners?
Gabriel: All right. It’s one of the first books I read when I just started getting in the business and building wealth in the first place. It’s a classic “Think and Grow Rich”, by Napoleon Hill.
Cody Hofhine: Napoleon Hill.
Gabriel: Yeah, it’s had several updated versions. I have an older version, but either way, I mean the contents, the content to all about the mindset, but yeah, that’s definitely one of the first books I read, I was told to read as part of this, building a foundation for yourself and you’re getting yourself in the right mindset. And even when I find myself getting out of the right mindset, I just got to come back to a book like this. I mean I’ve got several that I have that I read and I listened to, but this is a, for someone just starting out and trying to get in the right mindset, I definitely “Think and Grow Rich” is the first one that they should pick up and read
Cody Hofhine: 100% agree. I love that. That’s a classic book that will be timeless. That will always be great knowledge and great wisdom no matter how far out this world goes that will always have classic, timeless information.
Also, I think what’s quality that you’ll add a lot of value here in helping listeners and even students in the tribe is, you’ve gone through a moment of trying this one way, not doing it the right way, going through your hiccups, bumps, bruises, trials and challenges and then doing it the right way. And so now looking back, you have a great 2020 vision on wholesaling, so if you were to give maybe a gold nugget, some value to our listeners. Now looking back, seeing that you’ve done it two different ways, one way that didn’t work one way that works, what would you say for someone just getting involved, just wanting to get into wholesaling, they’re at the beginning stages. What would you make sure that they did? What would you do differently or what would you have done the same?
Gabriel: Well, one thing about I will say about the program, Wholesaling Inc, is what I really liked about it, that helped me make my decision, is that it focuses on wholesaling and wholesaling only. There’s a lot of coaching programs out there that help you focus on several different things. Maybe flipping, lease options and collecting rentals, and owner finance and I think Wholesaling Inc focuses only on wholesaling and wholesaling only.
And that’s what I really like about it. But as far as what tips I can give to somebody is listening to the modules I’m in, the modules are there, it’s coaching, be coachable, get on the coaching calls, ask you questions. But you can definitely succeed just by, it’s kind of like following the recipe is it does get uncomfortable. You will have your ups and downs and on one of the modules I can remember it was your or Tom, I think it was Tom talking about the pity party, the three minute pity party.
Cody Hofhine: That’s Tom.
Gabriel: Here’s one rule that you need. One just in general that I like to live by and I’m not perfect at it. Yeah, I did have several, a little three minute pity parties, you know,
Cody Hofhine: or Tom says, you can blame your dog, you can blame me, you can blame a family member, you can do whatever you want for three minutes. And then after three minutes, what does he tell you to do?
Gabriel: Move on, forget about it, stop crying. On the flip side, however I will say this, celebrate victories too. Like one of the, some of those lists that are tough to get, like tax delinquent list. Man, it was tough to get, I did have a little pity party there once when I thought I wasn’t going to get it. But when I got it I celebrated. The same thing when you start getting phone calls and you start having appointments. Yeah, celebrate those little victories. But again, don’t celebrate too long. Because one thing I will say about this check is, one thing I did do and they got celebrated a little bit too long, kind of did too many victory laps. And next thing you know I was like, “Oh man, I got to get back and get more activity going to getting more checks coming into the pipeline.”
So yeah, don’t celebrate too long. Pat yourself on the back and get all the congratulations and move on to the next one. Because there’s opportunity out there, there’s motivated sellers out there, there’s people out there who need help and if they don’t get it from you, they’re going to get it from somebody. So it might as well be…
Cody Hofhine: I love it. Gabriel. My friend. This is solid, solid, solid content. I wrote down a few things that I really want to mention again that you said. This is key: the fact that you serve people and continue to make it a win, win even after the contract’s done. You didn’t follow the contract in the sense of you gave money that you didn’t have to contractually, but you did because you’re a go-giver and you wanted to help the individual. I love that.
Second of all, follow instruction meaning be coachable. You’re going to pay for your education one way or the other, whether you do it on your own or go through a mentor but be coachable.
The third one I wrote down was get over it. There’s going to be tough times, there’s going to be trials, challenges and it’s okay if you want to have a little pity party for a second, but at the end of the three minutes, get over it, get back on that horse and in fact I should say get back on that rhinoceros and charge.
And then fourth I wrote down, celebrate your wins. This is so huge and this probably encompasses one of my favorite quotes by Jim Rowan, where he says, “you’re the average of the five closest individuals you hang out with. And so make sure if you’re going to celebrate that win, celebrate it with someone that’s going to celebrate with you”. The power behind that is sometimes it’s not that cool to go to your neighbor and say, “Oh my goodness, I made $7,000 doing this wholesale deal”. They’re going to be like you arrogant son of a gun. Like get off my doorstep. I don’t care.
But it is cool when you are working with people, you’re surrounding yourself with people that are like minded, that are also successful wholesalers so that when you do get these wins, you can share it with the tribe. You can share it with the community and say, “Oh my goodness, I did this first deal that paid me seven grand”, and you’re going to hear your biggest cheerleaders, cheer you on and congratulate you when you are sharing that success with like minded individuals that are also wholesaling.
So I love it, brother. I want to thank you so much for being on this podcast. This Is seriously going to add so much value to the individuals that are listening and maybe they’re listening for their first time and they’re a little bit nervous. They’re on the fence, they don’t know what to do, they don’t know how to get into wholesaling and this just might be the podcast where they’re saying, “Holy smokes, I’ve got to do something. I’ve got to take a chance on myself”, and I want to thank you, Gabriel for sharing what you shared today.
Gabriel: Can I add one more thing, Cody?
Cody Hofhine: Please, please do.
Gabriel: Everybody’s on Facebook these days and one thing that I do recommend, here’s another golden nugget, that get off all those pages that are useless. I used to follow all these useless pages on Facebook about political stuff here about news there, news there. As soon as I started getting into wholesaling party or mindset, get off all those pages. Start following all the positive, all the real estate pages, just positive pages in general because I’ll tell you what, when I posted my picture of this check, I’ve got more likes than anything I’ve ever posted before. I posted pictures of my kids, you know, graduating or not graduating but you know, singing, or my son being born or things like that. When I posted that check I got more likes than I ever could have imagined and I’ve got a couple of shares and a lot of these are people I don’t know.
These are just like minded people that I never even made friends with and it’s just amazing. It does do a lot. It does encourage you. It does make a difference when on your Facebook feed on people are going to be on Facebook all the time anyway, get rid of all those negative pages, get rid of all those… If you’ve got people on your timeline that are posting negative crap, you don’t have to unfriend them, unfollow them and you don’t need to see all that. If you’re going to be on your phone all the time looking at Facebook, might as well be something positive, something that’s encouraging you because I’m telling you what, that’s what encouraged me and that’s what made me make a snap decision on Easter weekend to just call one of your assistants over there a Skylar and say, “you know what? Hey, I’m ready to do this”.
And a poor guy was in the middle of an Easter egg hunt when I called him and so he had him take off and get my information. But the reason I was motivated, because you know, if you can’t necessarily physically associate with like minded people might as well associate on Facebook, you’re going to be on Facebook anyway. I mean everybody is, might as well associated with like minded people who are going to help you and get your mindset right. I know it’s helped me.
So that’s just one last little nugget that I wanted to share on. Get rid of all the negative stuff on Facebook and start following positive stuff that’s going to help your mindset.
Cody Hofhine: I love it. I love it. Gabriel, you are the man. I absolutely love it. I’m so glad you’re part of, what we call the tribe or the community. You add a lot of value and there’s so many people within the tribe that are looking at your story right now and it gives them hope, gives them faith and courage and it gets them right back on the rhinoceros to start charging. They might’ve been in the little pity party and all of a sudden they hear this and like, “wow, I can do this”. And so that’s the power of this community. So thank you so much again for joining us and for those joining us, listening on the podcast, I want to thank you. Your dreams are worth it. Your goals are worth it. What you want to accomplish in life is at your fingertips. It’s up to you.
Life won’t give it to ya. You’re going to have to go out there and work hard for it. But if wholesaling is something you truly want to learn more about and you want to get involved with, feel free to go over to wholesalinginc.com where you can click on our website and you can listen to powerful reviews and testimonials just like Gabriel’s where people are doing this all across the nation.
Individuals just like you that are changing their lives by doing one deal at a time and those deals change their lives. You can do that. So again, wholesalinginc.com. Wholesalingin.com.
Also we have our live event coming up. It’s October 15th 16th and 17th in Asheville, North Carolina. And to learn more about that, you can go to wholesalingsummit2018.com. Wholesalingsummit2018.com, where you’ll be able to see all of the speakers that will be up on that stage and I’m talking the best in this nation will be up on that stage sharing nothing but value to help you succeed in your wholesaling business.
And we are for the first time allowing non-students to go to that event. So definitely go there. Book your seats. The seats are very limited. There’s not many left because we are now in September and we’re only about a month away. So I hope to see you guys there and you’ll be able to meet us in person. Until next time, keep pushing hard, your goals are worth it. Go out there and take massive imperfect action and we’ll see on the next episode. God bless guys.