Posted on: February 28, 2020

Today’s wise and tenacious guest has achieved something many people have been dreaming of—he has transitioned from avid podcast listener to actual guest!

Pierre Harb is a determined wholesaling newbie from Cleveland, Ohio. While he has only been wholesaling part-time, he has already closed his first ever deal. And he did it all in just a couple of months!

For the record, Pierre started out just like most wholesalers. He’s no expert and he’s still trying to find his way around. However, what he lacks in knowledge and experience, he makes up for with determination and willingness to fail his way forward.

Pierre only netted close to $5k from his first deal but the lessons he learned has been priceless. More importantly, it has helped set him up for a lifetime of wholesaling success. If you’re ready to be moved, inspired, and motivated, don’t miss today’s awesome episode.

Take to heart all the lessons you’ll learn from Pierre’s wholesaling journey and be bold enough to act on them. Rest assured, it would only be a matter of time until you become the podcast’s next rockstar guest!

Key Takeaways

  • The marketing channel and the list he used to find his first deal
  • How having a servant’s mindset can help you succeed
  • One crucial mistake he made when he negotiated with the seller
  • Number of hours he spent on the deal from start to closing
  • Game-changing books he recommends
  • What he’ll do differently/the same if he has to start all over again
  • How people can get in touch with him

RESOURCES:

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Episode Transcription

Cody Hofhine:
You’re listening to another episode here at Wholesaling, Inc. My name is Cody Hofhine and I will be hosting today’s podcast episode, and super excited to be with you guys today. For those of you that are new and maybe this is your first time listening to us, we want to extend a huge welcome. And what we’re going to be going over today is wholesaling. So wholesaling is just simply the art of finding deeply discounted properties that then you can turn for a profit. So there’s many ways you can exit when you find these deals. There’s many ways, keep it as a rental or fix and flip or some people just simply assign it or sell it to another investor. So we’re going to talk about those strategies today. We’re going to be interviewing just a guest today, that’s going to break down step by step, how he just recently did his first wholesale deal.
So get out a piece of paper, get out a pen and get ready to jot down the golden nuggets that he’s going to share with you today because these little action items that he took to get this deal are the same action items you can take to go get your first deal. So get ready. Today. We have Pierre Harb, He is from Cleveland, Ohio. He’s only been doing this for just a couple months. So he joined the tribe back in November, just a couple months ago in 2019. And he’s already done his first deal. He’s going to talk about the details of this. He’s only doing it part time and a majority of the people when they get involved in wholesaling are only doing a part time. So for those out there thinking, “Aw, man, I don’t know if I could do this because I have a full time job.” Just like Pierre and many others, they all have full time jobs. So we’re going to deep dive this and get going right now. So Pierre, my man, how in the heck are you doing?

Pierre Harb:
Hey Cody, I’m so good man. So pumped to be here, how are you doing?

Cody Hofhine:
I am super excited. So the podcast is fun because I love seeing, as I announced this, I just kind of get my chills, I kind of get a huge smile and, and then maybe people can hopefully hear my smile through the audio. But I read just through what I just do introducing to you that you’re only been doing this a couple months and you’re all ready doing deals, which is very, very impressive. I love hearing this, but let’s talk about maybe what got you into wholesaling because you have a full time job. Maybe tell them exactly what it is you do currently and what got you into wanting to become a wholesaler or get involved in wholesaling.

Pierre Harb:
Yeah, absolutely. So my family runs a… it’s a family business construction company and that’s my full time job. I mainly work on the office. Occasionally if we’re shorthanded, I’ll go out and work on the field. That’s my full time job. How I discovered wholesaling, basically was, there was one evening I’m kind of just chilling out relaxing, watching YouTube video, and a video pops up about how you can get into real estate investing with no money. And I’m thinking, ah, that’s interesting, let’s watch it. I watch it that night is when I decided I’m going to begin wholesaling. I did some more research on it and I quickly stumbled upon Wholesaling Inc. and I was religiously listening to the podcast. I mean, every single episode know just from one to the next or the next to the next. And that was like, that was so much inspiration, so much motivation.

Cody Hofhine:
What’s the timeframe when you’re breaking this down, you began to take the action, join the tribe in November. How long prior to this were you listening and learning about wholesaling before you actually got involved with it?

Pierre Harb:
Yes, it was about a month, month and a half from the time that I first discovered wholesaling to the time where I joined the tribe. And it was maybe two weeks after I discovered wholesaling, when I scheduled a call with the tribe, Skyler called me and we spent probably an hour on the phone that day and I don’t know, I just wasn’t ready to do it. I wasn’t ready to take a plunge. And then finally you guys put up this offer that I couldn’t say no to, it was the black Friday offer.

Cody Hofhine:
Okay, okay.

Pierre Harb:
I couldn’t say no to that. So that’s Black Friday, 2019 was when I joined the tribe.

Cody Hofhine:
You jumped in and you got going. So let’s get right to the meat and potatoes. This is good stuff. So you listened to the podcast for about a month and then you’re like, hey, let’s, let’s have a conversation, let’s see if this makes sense to go further. And here we are now, you’re not on the listening end of this podcast. You’re the actual voice today brother. And so this is huge, and here in the next little bit, you’re going to hear a victory bell rang for you. You’re no longer the one listening to it being rang for someone else. This is your baby right here, so I’m super excited to have you as the guest, and I know there’s many out there that this story is going to resonate with and really connect with, so let’s get going. So talk to us, first of all, when it comes to, you’re in Cleveland, Ohio, how did you come across this particular lead? What was the marketing or what were the… maybe let’s break down the marketing channel and the list or how you came across this lead in general?

Pierre Harb:
So the way that I got this lead was, it’s almost unbelievable. I’m sure every wholesaler tries this, but it’s so rare that you actually get a deal from this marketing channel. It was a completely free lead. It was just a Craigslist ad. It was a Craigslist ad I posted, and maybe four days after I posted, I get a call from this lady and she’s telling me, the owner had just passed away, she takes ownership of the house. It gets passed on to her.

Cody Hofhine:
So she’s like the heir, a child of this. Is she a child of the individual that passed away.

Pierre Harb:
Yeah, exactly.

Cody Hofhine:
Okay, okay.

Pierre Harb:
So from listening to the podcast, I had already kind of figured out that first step would be, make an appointment. So I immediately scheduled an appointment. Now, keep in mind, this is in the very, very beginning of the tribe…

Cody Hofhine:
The course. So you’re going to the course and you don’t even know actually what you’re supposed to be doing. You’re just like, but I can’t miss the opportunity, so I’m going to go take imperfect action.

Pierre Harb:
Right, exactly. And I mean, so at this point I had learned so much more just from the podcast then the actual tribe, because again, it was like two days into being in the tribe. So I mean, how much could I possibly have learned? So I booked the appointment. I go out there and I have no idea how much the house is worth, how much an investor pay for the house? How to evaluate what the house is going to take? All I can tell is that the house is total tear down and it need a ton of work.

Cody Hofhine:
Well, so let’s pause right here because I think this is crucial. I think this is what’s beautiful about wholesaling in the first place is you’re mentioning some things that I think is key because there’s many, many of us, in fact, even when I first got involved, I knew very little about real estate. I did own a home. And so I did know that I signed this big two-inch thick stack of paper and me and my wife had eyes like that were just huge looking at these papers like, Oh my goodness, we’re paying 145, but yet at the end of the 30 years, it’s as if we paid like 350,000 just keeps signing, we’re just like, okay, whatever, that’s as far as we knew about real estate and many of our listeners are in the same state.
They’re like, “Aw man, can this really happen? Like, I don’t know anything about real estate.” The beautiful thing is you’re stating exactly this, I knew nothing, I go out to this home, it’s a complete tear down it’s in bad shape, but I don’t know what the price is. I don’t know this, I don’t know this, I don’t know this, and this should give every one of us that are listening today that you don’t have to be an expert in real estate because Pierre was no expert and probably would still tell himself I am nowhere near expert. I’m not an expert in real estate. That’s the beauty of this business. So keep going, you don’t know the stats. You don’t know anything, you just know that it’s in bad shape, it needs a lot of work. Keep going.

Pierre Harb:
Yeah. So I’m walking through the house with the owner, with the seller and she’s just telling me about how much of a liability it is, how much of a headache this is. She can’t get the house insured because of the condition it’s in. And it’s nothing but a major liability and a burden on her. I mean, she did not want this house. I haven’t talked to her. I was like, “You can fix it up, it’s a duplex, you could turn this into a nice rental. Is that something you’d consider?” And she kept saying, “No, no, no. I just want to sell it. I want nothing to do with this house.” I even talked to her about, why don’t you list it with, with a real estate agent? And she was like, “Absolutely not a real estate agent is going to want me to dump a ton of money into it and fix it up and make it beautiful.”

Cody Hofhine:
So Pierre you’re doing some incredible things here. I mean, let’s even pause here because I want these golden nuggets to be recognized because sometimes we’ll listen to a podcast and we’ll be like, okay, at what point is the golden nugget when gold is literally flying out of your mouth every second. So if I catch you, know that it’s because you’re saying so many things that are just good for everyone to hear that I may pause you here and there, but it’s this guys, if you heard Pierre, he said he even suggested, so it’s a servant’s mindset. Pierre went out there to serve this individual. “Hey, this is a great area. What if you fixed it up and kept it as a rental?” So many times in our minds, we think if we suggest that, that they’re just going to all of a sudden say, Yeah, I have never thought of that, I’m going to keep it as a rental.”
The best part is by saying that you actually reveal some of their pains or you might reveal that all these options are not really options to them. So by him suggesting that it doesn’t open her mind up to just saying, yeah, maybe I will keep it as a rental, it will now reveal why she doesn’t want a rental. So she said, no, I don’t want to do that. And she says, well then Pierre says something brilliant. Why don’t you list this with a real estate agent? And she just like, no, like realtor’s not an option. They’re going to make me want to dump a lot of money to this. I don’t want to do that. So you’ve presented two options. Really, there’s only a third option here and that’s to go with someone like you and investors. So keep going.

Pierre Harb:
Yeah. So at this point, it’s time for me to make an offer and I have absolutely no clue. I just, you know, I just throw a number out there and I go it’s a cash offer, you’re not going to be responsible for any real estate, no closing costs nothing, 25,000. And she had just under $1,800 in back taxes. And I go, so my offer was 25,000 and cover the back taxes. She immediately goes, deal, I’ll sign it. So I’m pumped. I mean, obviously my head I’m like, wow, I could have gotten that so much cheaper, but I’m pumped because it’s my first appointment, first deal, first offer to accept that. I mean, I’m just, I’m blown away.

Cody Hofhine:
So this happened quick though, it escalated quick. Meaning you just go in there and you’re like, 25 K and you don’t even know really at this point, like, okay, I hope this is a price that makes sense. I’m just going to throw out a number. But I think what’s brilliant is you caught yourself and you’re also like, yes, you’re excited. You get your first deal under contract. But you’re also able to learn from that saying, oh man, maybe I should have asked her first, what do you want to sell for? Because what if she only wanted 15,000 now I’m making this number up.
But the thing is you start to learn and the only way you’re learning Pierre, which is so brilliant is you’re just out there taking massive imperfect action. You’re not out there being a perfectionist. You’re not out there being an expert. You literally have said like five times on the podcast, I knew nothing, like I know nothing, I went out there and I just made this offer and you’re learning along the way. So I try to make sure all of our listeners are understanding like the brilliance behind so far, everything you’re sharing is you didn’t wait for a perfect plan. You’re just out there taking massive imperfect action. So you’re out there. You get the $25,000 offer. She says, yes, let’s keep going my man.

Pierre Harb:
Yeah. So the next day I start trying to market it to the very, very tiny buyer’s list I have, I think there was 50 or less people on this buyer’s list, and I know I need at least 150. I started looking for somebody who does have at least 150. And I find a guy that, located in Arizona, I don’t even remember how I found this guy. He’s in Arizona but he does virtual deals all over and he has buyers all over it. So in the meantime, I’m still finding more buyers marketing, the more people. And there’s a guy that contacted me and he goes, “Hey, I have a bunch of buyers.” Now this guy comes into play later. I tell the guy from Arizona, he said, we’ll keep him as a later resort. So and later on, he’ll come back into play.
So I’m trying to find buyers and I’m getting really, really low offers on this house. So I realized that I definitely got under contract way too high. I call the seller and I tell her that we’re not going to be able to make a deal happen, we’ve got to cancel it. And she jumped to, well, why? I tell her, the price is too high. It’s not going to be a deal. And then she goes, make me an offer.

Cody Hofhine:
So now you know she still wants to move forward. I think here’s something key let’s stop here for just two seconds Pierre, because many of us, if we think we have to cancel a contract means I just killed the deal, they’re going to be ticked off at me and they’re not going to want to move forward and you didn’t have to do any kind of justification or some long story. You just simply said, Hey, I’m going to have to cancel. And she’s like, why? And you’re like, the numbers don’t work. So many times we start to talk, I compare it to like, when you’re at a theme park, my kids love Disney. When you go up to the ride, all the person needs to say is keep your arms, hands and feet inside the cart until it comes to a complete stop, like enjoy.
And so many times we start to think like, we have to say more than, than just to the point, “Hey, I’ve got to cancel the prices don’t work.” And if you can just keep it short, you’ll see that this seller also said, “Okay, we’ll make me an offer.” So keep going. This is good. I hope even you’re writing some of these downs because maybe you’re noticing this, but if you’re not noticing it, man, you’re saying some incredible things that is setting you up for this win that we’re going to talk about, so keep going.

Pierre Harb:
So she goes, make me an offer. I just spit out another number, and I go at 12 grand and she goes, “Okay, I’ll take it.” So I sent her an addendum and then I contacted everybody who had offered me anything above 12 grand at that point, just kind of see, let’s move forward, let’s get this done. And nobody wants to move forward with that. Everybody’s saying it’s a good deal, but it’s just going to require so much work. And so much time before we get it rented out. So I’m just sitting and waiting, standing and waiting and just trying to find more and more people contacting everybody. Finally, the guy that I signed the agreement with, he gets contacted by the same guy that we said, well, we’re going to put them on the back burner. And if we need him, we’ll contact him. Does that make sense? Or am I…

Cody Hofhine:
Yep. Yep. Nope. This totally makes sense.

Pierre Harb:
Okay. So the guy contacted me and he goes, yeah there’s somebody that wants to work with us. He says he has a buyer and the buyer will pay 19 grand. So I then find out that it’s the same guy from the beginning. This whole deal could have been done way quicker if we just, if we just said yes to him way back then. So that’s a lesson learned on its own. So his buyer offers 19 grand and we didn’t even argue with that at that point. I accept his offer. I call the seller back and I get it down again. I get the price down again to $10,315. So we ended up getting the house all in $10,315, and we pay the back taxes, which are just under 1800 bucks. And we sold the contract for 19 grand.

Cody Hofhine:
Okay, $19,000. So now let’s do some math on this. This one was just, they put home under contract and then it’s an assignable agreement or assignable contract and they sold the rights to it. They sold the contract so that someone else could go close on it in behalf of them. So you end up selling it for 19,000. I’m assuming there’s a split. What did you ultimately get from it, that was like, this is my cut of it.

Pierre Harb:
My cut was $4,674.52.

Cody Hofhine:
And 52 cents. Hold on one second, Pierre. You know, what’s coming, my man, hold on.

Pierre Harb:
I’ve been waiting for that nonstop. I’ve been dreaming about that bell being rung for me.

Cody Hofhine:
Well then I’m going to do something one up over and above. I am going to have Anne, who is on my team, mail you out a personal victory bell that you can hang out on your wall so that you can ring one whenever your heart desires and every time you get to deal going forward in the future. How’s that?

Pierre Harb:
Hell yeah, that’s awesome, man.

Cody Hofhine:
Awesome. Awesome. Well, I’ll make sure I got it now jotted in the notes. Deliver bell to Pierre. Okay so a little over $4,500 in assigned fee. If you were to name, just so people start to see the whole process, if you were to put like a number to it in hours that you worked on the deal from the first time you talked to him until closing how many hours of your time was involved in this?

Pierre Harb:
You sure you want to know that?

Cody Hofhine:
Yes, yes, yes.

Pierre Harb:
All right. This deal, I think I learned as much in this deal. As I normally would have over a hundred deals. This deal was, I mean, it was just such a pain in the neck, all in I think I probably spent like 45 hours in it.

Cody Hofhine:
Okay. 45 man hours. Like you were involved 45 hours, whether it’s calling people or call the seller or renegotiating the contract or trying to find buyers, 45 hours, right?

Pierre Harb:
Yeah.

Cody Hofhine:
Okay. So here’s the thing though. Did you feel like those 45 hours, I know you just said it, do you feel like what you were able to take away from this deal? Not necessarily, okay, what does that equate to 45 hours into 4,600 bucks, which is still above average pay, which is still a great pay. Are you looking at this though? And you think, okay. Yes. I got paid a little over 4,500, a little over $4,600. But the learning that you were able to be part of, I would probably venture to say that that was priceless, is that true?

Pierre Harb:
Oh yeah, absolutely. It’s so important to me that this all happened as my first deal, because I couldn’t have asked for a better deal. A lot of people probably have been like, “Yeah, I wish this deal was easier. I wish it was quicker. I wish it so difficult, it’s only my first deal. It shouldn’t be this hard.” But I’m so glad that this was my first deal because this one deal has prepared me so much more for every deal to come, I learned it so quick, just off one deal, I learned so much, so fast, off of that one deal as opposed to a year of deals.

Cody Hofhine:
Yeah. Yeah. Well, I can tell you, I am super proud of you. This is exactly what we hope for, and anyone that is either listening to the podcast or like yourself as part of the tribe and is going through the mentorship program, this is exactly what we hope for is that ultimately you’re receiving more value than you ever paid in price, but they are receiving more value that will teach you how to do this now over and over again, because now you’ve done a deal, Pierre, your confidence now just boosts up. Your belief is no longer this faith based belief, now it’s fact, it’s like, I’ve done it, I know it works, and it works for me, and so it’s going to be like a snowball effect. You’re going to see this momentum start to take place with you and I’m super excited to, to hear in the near future, what 2020 looks like for you when we check back in a few months and see how this is going, how the momentum’s going.
And ultimately, you have opportunity at some future point that if you wanted to do this full time, you’re going to start to see how you can start to make that actually a reality. So super excited for you, Pierre. Thank you so much for being part of this podcast and sharing what you shared with us today. But before we go, we always have two questions. I know you listened to the podcast a ton, so you know what’s coming. So I’m going to ask you the first question. What book have you read recently that has been game changing for you? Something that has helped you become who you are today.

Pierre Harb:
There’s two, can I name two?

Cody Hofhine:
Sure.

Pierre Harb:
So number one is Rhinoceros Success.

Cody Hofhine:
Yeah. Scott Alexander. He’s a rock star.

Pierre Harb:
Yeah. And number two, definitely. I mean, everybody should read this book, The Four Spiritual Laws of Prosperity.

Cody Hofhine:
Such a good, good book based on just having an abundant mindset. That those are two, two great books. Okay. Question number two is looking back, knowing what you know now, is there anything that you would have done differently if you were to start over again? Or is there anything you would have done the same?

Pierre Harb:
I don’t think I would’ve done anything differently. I think all the mistakes that I did make we’re, I mean, that was like a fail forward type of thing, I know the tribe preaches that and that’s exactly how it was. So I am grateful for every mistake that I made and I would not have done it any differently.

Cody Hofhine:
Awesome, awesome. I love it, I love it. So you’re grateful, this is what’s cool to hear for those of you listening, showing gratitude for the mistake, showing gratitude for the failures that people would call failures when indeed those mistakes, those failures are actually our greatest, greatest stepping blocks to make us become someone greater and someone better. So thank you for sharing that wisdom, thank you for sharing those books and ultimately thank you for inspiring and motivating our listeners today to give them the desire to get out of their own way and get out there and start acting much upon these same principles and action that you took so they can get one step closer. So thank you so much, Pierre, for being with us today.

Pierre Harb:
Oh yeah. It’s my pleasure. Anytime. Can I put my contact information out there?

Cody Hofhine:
Sure you can, sure you can.

Pierre Harb:
Cool.

Cody Hofhine:
You may get blown up. That’s all I want you to know.

Pierre Harb:
I’d be happy to anybody. Who’s looking for any kind of help, any kind of pointers, tips. I know I’m no expert. It’s only been one deal, but from this one deal, I promise you I’ve learned as much as a normal 50 or 100 deals would teach you. So anybody who’s looking for some help, please give me a call (216) 212-9602, (216) 212-9602.

Cody Hofhine:
Awesome. Awesome. Pierre, you are the man. Thank you so much. And for all of you listeners today, Rhino Nation, thank you so much for being with us today and get ready, we’re going to be bringing the heat. We’re doing this now five days a week. So every single day you can listen to a brand new podcast episode. And if you are ready, go to that next step. And you’re looking for us to help you build your wholesaling business, to get you consistently doing deals so that you too can get on this podcast and share your inspiration, your motivation to this great nation, head on over to www.wholesalinginc. Com where you can book a call with our team and begin the conversation to see if it’s a good fit. Until next time guys, get out there and take massive imperfect action, and we’ll see you on the next episode. God bless.

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