Posted on: March 20, 2020
WI 388 | Uncomfortable Action

 

What are you willing to do to get your first wholesale deal? Today’s rockstar rhino chose not to hold back—he went into wholesaling full-time, stepped out of his comfort zone, invested in expert help, and took massive imperfect actions. Of course, his hard work and tenacity paid off big time!

Jay Mancuso is a new rhino from Omaha, Nebraska. While he had no prior wholesaling experience, he invested in expert help, failed his way forward, and gave the venture all he’s got. And the rest they say is history.

If you’re a new wholesaler who has yet to find your first-ever deal, this episode is for you. You’ll not only learn a few effective techniques, but you’ll also discover the mentality that has helped Jay win in the competitive world of wholesaling!

The Uncomfortable Action That Led To A Rhino’s First Deal With Jay Mancuso

Episode Transcription

Before we go into this episode, I want to remind you about the contest going for the whole month of March 2020. I want you to ask yourself this question, what would it do for your wholesaling business/career? If you could spend two full days with Tom Krol down in sunny Florida and have him dissect your business plan or your model and make sure that you are on track to dominate your market. For the whole month of March 2020, we are doing special ratings and review contest where we are going to pick three lucky winners to go head down to sunny Florida.

We are going to take care of all of your flights and accommodations. You are going to get to spend two full days with the man, the myth, the legend, Mr. Tom Krol himself in sunny Florida. Ultimately, if that is not enough, the three of you, by hanging out with Tom and with one another, he is also going to put you in the hot seat and have you featured on this show as well. Head on over to iTunes, do a rating and a review, and simply take the screenshot, and send it over to Darrin@WholesalingInc.com.

In this episode, we are going to be breaking down as we have one of our tribe members and students with us. His name is Jay Mancuso. He is from Omaha, Nebraska. He did his first deal and is going to talk a little bit about how he did the step-by-step. For the readers, get ready to jot down some gold nuggets so let’s get ready to rock and roll and get going. Jay, how are you doing?

I am good, Cody. Thanks for having me on the show.

First and foremost, are you doing this full-time or part-time?

I am doing it full-time.

What were you doing before you got into wholesaling? What got you into wholesaling?

I was a painter, so I was painting full-time. I was brought into wholesaling by my brother-in-law. He is the one who found all this. He owned some properties and was looking at different ways to invest. He pulled me in. Once we started the program, I was all in.

You have been doing this for about how long?

I stopped painting in late August 2019, and so right from the beginning of September 2019.

We are going to break this down. You are painting and now doing this full time. Let’s go right into the meat and potatoes behind this. Let’s talk about how you did a deal and everything. Let’s get the struggles out, the successes, the joys, the happiness, but more importantly, the whole experience. We will go right from the start. What is it that you were doing to find this lead? What marketing were you doing when this lead came in?

WI 388 | Uncomfortable Action

Uncomfortable Action: Most of the first calls are not the motivated sellers you’re looking for.

 

We did exactly what you would say in training. We did direct mail marketing. I thought, “Why not go with the Tom Krol list? It looks like something. Most people who are doing wholesaling in our area probably are not using.” Specifically with the training, so I was like, “Let’s do it.” At first, we are thinking about the numbers like, “We do not want to spend a lot. We do not have any pipeline and we do not know what we are doing, so maybe let’s go small,” but we decided, “Let’s do the whole thing.”

When you say start small, what does that look like? When you say, “We started small because we did not know what we were going to get out of it,” how many mailers? Were you sending them out weekly or monthly? What did that look like and how many?

For this one, we took the entire Tom Krol list that they had for Omaha.

For those reading, Tom Krol list, that is something within the tribe. Jay, this is the funny thing behind this list is I do not even know the algorithm. Our list provider behind this has his unique, special sauces. We were able to get this list to be our custom list, and we call it the Tom Krol list. I do not even know the secret sauce behind it. I just know the provider. You got this list from that provider and were mailing it to them. Talk about like the size amount, quantity out, and all that stuff.

I was thinking, “We will get a couple of zip codes,” then the guys that I was working with are like, “Let’s do the whole thing.” It was 6,000 and I did not even do any separate drops, which would have probably been smart. We did the whole 6,000 right at once.

Was your phone crazy off the hook ringing?

Yeah, for one weekend. It was a bunch of calls and people telling me to pound sand, as you guys say, or meaner things. We had CallRail set up, so it is so nice not having to answer those calls and let them yell at you. You just go and listen to the voicemail. We had a bunch of voicemails coming in, especially one weekend. I will say in my experience, the majority of those first calls are not the motivated sellers that you are looking for.

They are quick to pick up and call you and be like, “Take me off your list. I do not want this.”

I was surprised about it and thought, “I would not want to go through that hassle. I would throw away the postcard.” We got a lot of those, but it is a numbers game with that. This call that we got from the deal that we did came in probably maybe two weeks after. I had already gotten a bunch of stuff. It all settled down and I was thinking, “What am I going to do next?” We are going to go look at another mailing because I had some decent leads from it. I had about four house visits and some of which did not go so well, but I was thinking, “What am I going to do?” This guy then called and he was motivated.

What does this do with your confidence? I think this is crucial to talk about. The whole time you are doing it, you are working basically off of faith. You are hoping that this works in a course per se and learning this. I know when I first started, it is like, “Will this happen? Did I get the right list? Does this list work in my market?” There are all these almost natural fears or natural doubts that start to sink in. You are like, “Should I invest more money into this? Does this going to work?” Did you have any of those struggles or real-life doubts or fears kick in?

When we first did the mailing, I did not even know what a house visit was like. I did not have any of that understanding. When you are getting all these calls that seem like no one is a motivated seller, you are thinking, “We spent this much money to get this done and it seems like nothing is coming of it.” You start to think either this list is bad or I know it works in other cities, but Omaha might not be a place where it works so well and all those things will come to your mind.

You’ll get better each time you meet with clients, and you’ll better understand what they’re looking for.

Did you see going out on the appointments as a learning experience or did you see them as a complete catastrophe? Were you like, “That was awful,“ or was it like, “It was awful but here is how I can make it better next time?”

I definitely learned. I got better and better each time I met with someone and had a better understanding of what they were looking for. One big thing that I realized is that when you are on the phone and it is a motivated seller, you get to pinpoint and drill in on them getting that deal done when you are there in person. If we come to an agreement, you are ready to get this thing going and find out their timeline.

Some of the things I did not think about is I got the appointment, set it up, and I would meet with them in person and they would say, “I want a couple of weeks to either clear things out. We will clean this up and you can come back to give us a price.” That slows everything down, and that is something that I realized as well, along with learning to listen. When you are thinking about how much money you spent on marketing, you are thinking about the money when you are at a meeting with them instead of focusing on their family and what the problems really are.

This is a good point I want to highlight. When you go on these appointments, it is very real right out of the gates that, “I spent this money.” In your case, you spent money on training, the Wholesaling Inc. course, that teaches you so you have already got that money then you have got the money into the marketing. It is very easy for each of you to read this. That is why I am so glad he is sharing this. On a sales floor, they call it commission brats where you are doing everything you can to close the deal.

He is saying how crucial it is that that was going on but he learned how to correct that like, “I was not spending the time on the family, finding out about them, or listening.” That is how the deals start to happen. Many times, out of the gates, it is hard to focus on what matters because all you are thinking about is, “Money is out and I got to get money back in.” Keep going, Jay. This is perfect.

That experience helped me a lot in getting to know their situation. While I was finishing this deal that we got done, I was in the process of another one. I am meeting with them and trying to get that done. They got cold feet a little bit. I had met with them and they were super motivated at that time. I did not get that closed while I was there like I should have.

When you say cold feet, like, “I did not get the contract or the agreement like I should have,” what was the big hold back on that?

It is an older lady and her daughter was the one who called in. Her mother was the owner of the home, and she is 84. She can’t move very easily. She wanted to move down to Kansas. She had some different ideas about what she wanted to do. When I was talking to her, I did not phrase some things right. One thing I realized is trying to make sure they know that you are going to buy it as is because some people think they need to clean out things or move different things.

They got that in their heads so she was thinking, “Let me clean some things up and then you can come back and give me a number.” Buyers see through all the cleaning and things like that may seem important or it is a lot of work. That is a very cheap thing to clean up a house. I am saying cash buyers do not look at cleaning up things in the home as a big expense.

They are looking at the structure and all the big expenses, so that should not affect your price at all. I should not have let them get that train of thought, but the daughter is totally ready. The 84-year-old mother was a little bit scared of where she was going to go and what she had to do. The daughter got a dumpster and the mother sent it away. The daughter reached back out to me and was like, “I am sorry. She does not want to do it right now.”

When I was there with them in person, they were so ready, like, “We want to get this done now.” They were already talking the numbers down from what I was expecting to get. That was a learning experience too. That meeting was probably my fourth. I sat with them for about an hour and a half talking about life.

WI 388 | Uncomfortable Action

Uncomfortable Action: Maximize your profit or change margins to make it competitive.

 

I was building that relationship to the point where the daughter said to me, “My mom does not know what she wants to do right now but once we find out, we are going to talk to you first,” which says something but it is also not making money. That is something I did not drill down on early enough. It is learning how to make that deal happen when you are there.

How did the deal all go down? Was this something that was done over multiple visits? What are the shape and structure of it?

Messy. That is the structure.

You will never forget it. It will be the deal that you always remember and that will turn that faith into fact. Talk about the mess. What was it that first time you went and visited?

He was a guy who wanted to sell his home. He was getting married and wanted to pull his resources with his new wife and get all that settled. He told me he was going to have other investors look at it. Especially being one of my first visits, I was not very confident. I did not know my numbers either. I said, “I will look at it and send you a number,” because he said other people were going to look at it. I met with him. He was very closed off. It was hard for me to get to know him.

He held his guard pretty close. He was not there to socialize. He was like, “Get me the number.”

He would follow behind me as I looked through the home, which is not what you want ever for those of you that are new and learning how to talk with motivated sellers. You want to get to know them and make it as little about the house as possible, which you guys emphasize in training. I knew that while I was walking through it, I go, “This is not how it is supposed to be.” I am looking through it and it is all about the house. I am not getting to know him. He said he had other people that wanted to look at it. I had a very brief visit and ended up sending him a number, which we looked into how we wanted to do.

At that time, I did not take the training’s advice, which would be if you are going to have to send in a number, say it first. You maximize your profit or change those margins. I made it competitive. I had that fear mindset. Having that confidence and the abundance mindset, I was thinking, “We are going to lose this deal,“ so I sent him one. It was probably two weeks later. It was a Sunday night and I was thinking, “I do not even know what I am doing this next week. I do not know what I have planned.”

This is experience is so real. For everyone that gets out there, there are so many frustrations, trials, and challenges that hit you, and then you question, “Do I even have something to do next week? Do I even have leads to work? Do I even have a pipeline? What do I do now?”

It was a Sunday night, and I was thinking, “What do I have going on this week?” It is coming right up and I have no other leads. I have no one to call.” Sunday night, I was praying, “Lord, bring something because I have no idea what I am doing.” This homeowner emails me back and says, “I am going to accept your offer. Let’s meet in person.” That same morning, I also got another good lead. I was amazed by having that happen.

He took that offer. Another thing I learned later, which made me feel stupid, was that he never even had any other offers from anybody else. He had told me that and then when I met with him, I asked him about it, and he is like, “No one else ever got back to me.” I could have probably done a lot bigger of a deal or sent him a different offer. Anyway, we can move past that.

Don’t be afraid to do that deal and make mistakes because you’ll learn.

You got under contract. At what price point did you get under contract?

I got it under contract at $80,000.

What was the home worth? If it was all fixed up, it could sell for what?

It could sell right around $120,000.

Was there much work that needed to be done to it?

If it was a homeowner that was coming to live there, I do not think it needed that much besides cleaning everything out. A lot of investors were thinking about flips and things like that. They thought it did not seem like a good price point. The carpets were pretty rough, but there were wood floors underneath them. You had to rip out the carpets. It did not need a lot of work, in my opinion.

Getting that under contract, was your ultimate hope to be able to find a cash buyer that you could assign this to, was that the play you were looking for on this one?

I assumed it was probably $10,000 or $15,000 of work that needed to be done on it. You could think an investor could have made $20,000 or $15,000. That was what I had in my mind.

When you started marketing this to your cash buyers list, what were the results?

Only a few people laughed and said, “No, I am looking for homes in distress, not ones that are new,” because this was an old brick home. It was in an area of Downtown that is typically pretty rough as far as the homes and the people do not want to invest in that area very often. New homes sell around that price. What happened was I had gone to the REIA meeting, and one of the guys there, I had him come look at it first because it was the guy that ran the session.

He looked at it and immediately said, “You got too high.” I exhausted my entire buyer’s list until our very last buyer had another connection. This guy was our last hope all the way to that point. This guy had talked to the homeowner and given him an offer after ours that was more, and he refused it. He knew everything about the house. I did not even have to walk through it with him. It was one of those things where it all came together perfectly, which blew my mind.

WI 388 | Uncomfortable Action

Uncomfortable Action: Work with the people who have done what you want to do.

 

Was this the guy that ended up buying the contract from you?

Yeah.

What did you end up selling that? You got under contract for $80,000. What did you sell the contract for?

It is $85,000.

You made a $5,000 assignment or profit on this deal. What was your biggest takeaway or biggest learning curve that you took from this deal?

There were so many things that came to my mind right after I finished. For people who are new, do not be afraid to do that deal and make mistakes because I have learned so much. I can’t put everything together to one point, but I learned so many different things from going through the process and taking what I learned and doing it because I had no idea about the meeting, how to send the offer, or how to talk to the buyers.

I called or emailed almost all my buyers individually. I had to meet multiple times at the home because I did not set an inspection time where everyone could come at once. It is hard to pinpoint one thing, but I say that do not be afraid to make those mistakes because you will learn so much from all those different things, going forward and doing them.

This is so crucial. Everyone, remember these keywords. It is getting out there and doing it. He was not an expert and perfect at it. He went out there and did it anyway. Many times, we have a fear of meeting with people, doing the contract wrong, marketing wrong, or setting up the appointment and talking to them. There are all these natural fears and they are real. Do not get me wrong, but courage is not a lack of fear. Courage is having the fear, still going out there, and doing what you know needs to be done.

We always talk about this massive imperfect action. Get out there and take massive imperfect action because perfect plans do not exist. In fact, because this is new, for many of you going out there, it is going to be challenging. You are going to find the word failure maybe exist in some of your appointments, conversations, or marketing. That is okay. It is that proximity to the fear that allows you to overcome it.

Think about riding a bike. All of us when we were young and we had trained wheels, the day that maybe your parents or someone that loved you said, “It is time to do with that training wheels.” There is this huge fear that probably came over all of us. I know it did for me. The only way that we were able to overcome the fear was with proximity to the fear, meaning our closeness to the fear of doing it. Many times, I fell on my bike and each one of you may have fallen on the bike multiple times, but you keep doing it.

The ultimate gets to the point where we all can ride a bike and you do not have to think about it anymore. Falling is not even an option, but it was not because you came up with a perfect plan. It is because you took imperfect action and stayed close to it. The proximity to it was what helped you overcome it.

Be more confident, or you may cause your listeners to hesitate.

Jay, this has been absolutely sound advice that anyone could adopt now and realize, “What are my biggest fears right this second? If it is something I am afraid of, I must do it. I got to get out there and do it with imperfect action.” Following up on two questions. We always end our show this way, Jay, and I want to ask the same to you. If you were starting over knowing what you know now, is there anything that you would have done differently or the same?

How I talked with the seller would probably be different and how I arranged that meeting. Now I have done it, I would say I have more confidence. That maybe is something that causes people to hesitate. It is because they do not know what they are talking about, which is exactly what I was doing. I had no idea what I was talking about, especially when I was talking to buyers.

They are all smart-talking and talking numbers to me. I have no idea what they are talking about, which was fine. You guys said to call each of them your first deal, which helped a lot. I gained a lot of contacts from doing exactly what you guys said. Calling each one, talked to them, finding out what deals they wanted, and I learned a lot through that.

The second question is, what is a good book you have read that has been helpful to help you become someone better?

I saw that I should think about a book that I wanted to talk about. I am not much for reading, but I would say the book that has influenced me the most is the Bible. The scriptures are definitely what motivate me in most of the decisions I make in life. I would encourage anyone reading to go read the scriptures. I know that is not very business-like, but that changes every decision I make in my life and how I go about my business. That is exactly what I would say.

I think that is sound advice. Jay, I want to thank you so much for being on this show. I know this resonates with many people reading. Maybe they are in that fearful state and they are like, “I have not taken action because I am afraid of what is going to happen. I am afraid of failing or going on that appointment.” This was a perfect episode that allowed people to say, “It is okay. You are not going to get it right. Go out there imperfectly, get it done, and learn from it.”

Ultimately, it is your action that led you to this first deal. Now, as you said, what’s cool is your confidence is now higher. Going forward is going to be so much easier because your confidence is like, “This has been done. It is no more faith. It is now a fact. I have done it.” Doing it again is going to be that much easier to continue to do this consistently. Thank you so much for being on the show.

I want to say this one last thing. The seller got out of me that it was my first deal, which was an embarrassing moment where he was like, “Have you done it before?” I can say yeah, but I did not say that. I was like, “This is our first one, but we work with guys who have done them.” The very last thing I would say to anyone reading is this training works and people in our area, and I assume it is the same around the country, do not do business the way this training with Wholesaling Inc talks about. Most of the time, not getting to know they are not building rapport. They are seeking the deals. There are a lot of people cheating in real estate. I would endorse Wholesaling Inc and go through this training because it has helped our business a lot. It is sound advice.

Jay, I appreciate those kind words. We try our best here, but I thank you for sharing that. That is fantastic. For those reading, I hope you have been able to get what you were seeking, what you were looking forward to getting here to the show and Jay sharing his story hopefully gave you answers. More importantly, gives you something to write down on what you can act on because that is what the show is about. It is not here to feel good. That is great but if you do not go out there and act upon what you feel, it will do no good for you.

Make sure you get out there, take action, have conversations, get on appointments, make offers, and that is one step closer to getting your first deal or your next deal. If you need help building your wholesaling business, like Jay said, head on over to WholesalingInc.com where you can book a call with our team, begin to have that conversation, find out what it is you are looking for, and see if it is a fit. If so, we will invite you to be part of the tribe and get you going on your wholesaling business. Until next time, get out there and take imperfect action. We will see you in the next episode.

 

Important Links

 

About Cody Hofhine

403Cody Hofhine, a multiple Inc 5000 Business Owner. Co Founder of Wholesaling Inc. the #1 Real Estate coaching program across the nation. Co Founder of Joe Homebuyer the leading Real Estate Franchise. A successful Real Estate investor/mentor and sought after Speaker.

Cody has coached over 3 thousand students on how to successfully Build their Real Estate Business through his real estate training as well as help individuals perform at their highest levels with his one-on-one mentoring.

Cody used his background in sales to quickly build multiple 7 and 8 figure Real Estate Businesses that all start on the foundation of clarity or Vision and Purpose.

Cody loves being with his family and doing crazy tricks behind a boat.

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