Posted on: July 16, 2020

Can you imagine what you can accomplish if you are proactive, you find a way to be of service to others, and you’re willing to take massive imperfect actions? Today’s young and highly motivated guest did all that and closed 4 deals in his first 4 months!

Gabe Capellan is a driven 21-year-old from Greensboro, North Carolina. While he had no idea what he was getting into at first, that didn’t stop him from being proactive and taking action. In fact, Gabe spends an astonishing 8 hours making phone calls!

Truly, people like Gabe is a testament that as long as you stay driven, you take action, and you make helping people your primary goal, your efforts will always be rewarded. If you can use a little inspiration during these times, today’s episode is for you!

Key Takeaways

  • How he discovered wholesaling
  • What his primary goal for this year is
  • Why he moved to the United States
  • What his daily schedule looks like
  • Three parts of the wholesaling business
  • What he looks for when pre-qualifying
  • Breakdown of a special deal he did
  • What the Freedom of Information Act is
  • Best way to get in touch with him

RESOURCES:

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Episode Transcription

Brent Daniels:
Welcome everybody to the Wholesaling Inc podcast, America’s number one podcast for new real estate investors, where we know that finding discounted properties is the most proven path to financial freedom. I am your host, Brent Daniels, Mr. TTP, and I am telling you if I can do it, so can you. So let’s get started.
I’ve got a quote from a book and this is going to be perfect, because I am interviewing on this show a 21 year old from Dominican Republic, originally, living in Greensboro, North Carolina. Who did four deals in his first four months, all from being proactive and picking up the phone, which leads me into this quote perfectly. And that is, “Where is it written that rejection has to be so awful? Why can’t rejection be only slightly annoying or amusing, or for that matter, exciting and energizing? While we have absolutely no control over the actions of others, we do have total and complete control over how we react.” With that I am very excited to introduce the young superstar out of North Carolina, Mr. Gabe Capellan. How are you Gabe?

Gabe Capellan:
I’m doing pretty well. How about you Brent?

Brent Daniels:
I’m excited. I’m excited because before we got on this show we had a little conversation, and Gabe told me if I were to look at his dialer reports, it would show that this maniac, this wild man, this incredible young man is… You’re on the phone how many hours a day?

Gabe Capellan:
Eight hours a day.

Brent Daniels:
Eight hours a day guys. And let me ask you this Gabe. In those eight hours, are you dealing with massive rejection all the time?

Gabe Capellan:
I get everything. Everything that you can imagine.

Brent Daniels:
Everything. Okay. We’ll deep dive into that, but let’s roll back the tape a little bit. You tell me, tell me about you? Tell me about your background? Tell me about your upbringing? Tell me how your journey led you to wholesaling, and to this podcast?

Gabe Capellan:
All righty. Well I have three years living in the States. So when I came here, I was working on construction. So I was seeing people flipping houses and I was working on them, painting them. So for curiosity, I was just going on [inaudible 00:03:34] and looked for how much they bought it and how much they sold it. And I’m like, “I want to do that, but you’ve got to have a lot of money to do that.” So I Google it, and that’s it. Wholesaling, came to my computer and I’m like, “Let me try to read about wholesaling.” So I start educating myself, hearing every podcast. Meanwhile, I was working everything, trying to get education from everywhere.
Then after let’s say three months of deep diving and everything, I decided to join the Tribe. If that failed, I was fucked. Still, I was already taking action without knowing what I was doing, but taking action. I was hand dialing when I had time and all this stuff. But I said, “I need to take a step forward.” So everybody that is on the TTP, success. Everybody’s success. So I’m, “I have to join the Tribe. If I join somebody, I got to join a group that is successful.” So I decide to join the Tribe.
Since then, after my two months in the Tribe I made roughly 17,000 and then it was the snowball effect. Then it came another deal, then another deal, and another deal. Then now I have two pending, right now under contract. And I’m about to get three more this week.

Brent Daniels:
That’s right. I love it. I love it. And so you went… and this is really interesting, because I want to really get into this and sink my teeth into this. So you’re like, “Okay, I see that I’m working for these guys that are flipping houses. They bought it for this, they’re going to sell it for this. That looks like really good income.” And then you said to yourself, “Well, how do I find those deals?” Is that the first thing that went through… How do I find houses that are cheap?” Is that what it is?

Gabe Capellan:
No. It was, “I want to do this, but I don’t know how they do this.” And in my mind I was, “They probably have a lot of money. They bought it, they put the money into it and then they sell it.” But I didn’t know private money exist, so I didn’t know hard money exists. I didn’t know [inaudible 00:05:36] exists. And when I first saw it, I was, “Nah, this is not real.” But when I first start digging out, digging out, I started seeing Max Maxwell videos, start seeing you guys. And you, you was like the first thing you see in my phone, it was Wholesaling Inc. and Max Maxwell. That’s everything I was hearing, that’s everything I was watching. If I was going to go for a round trip, like, let’s say Charlotte, that is an hour away from me. All I put was podcasts on my car. I stopped hearing music. I stopped, you know, all my mind was it was in wholesaling because when I was in college, I was a starting CIBO engineer. So I’ve kind of liked construction.

Brent Daniels:
Sure.

Gabe Capellan:
I want to get to the point to fix something for myself or, you know, it looks kind of fun. I still don’t know, but it looks kind of fun. And real estate, I always liked. The thing I want. When I was 14 years old, I read Robert Kiyosaki book, when I was only 14. And I was like, damn, is this possible? Like, you can have this amount of money only by rentals. And this one rental can gave you three, four and you know, the snowball effect. And I was curious, so I’ve always been curious about real estate, but it was just the time to get into something that I can really try then.

Brent Daniels:
Yeah. So you read Rich Dad Poor Dad?

Gabe Capellan:
Yes. Rich Dad Poor Dad, when I was like 14.

Brent Daniels:
And then the second book to that, I remember reading that too. I was like 19 years old. It blew my head. I mean, I was like, Oh my gosh, this is incredible. And then I read the second one that was called Cashflow Quadrant. That explains the difference between employees, self-employed and business owners and investors. And that was like, Oh my gosh, this is so absolutely incredible. And I think that that’s really, what was sinking into your mind is you didn’t always want to be an employee. You didn’t always want to be doing all this work. You want to work for yourself. And that’s where we start. Remember when you’re starting out in this wholesaling business or real estate investing business. You’re not the employee anymore. Now you’re self employed. Okay. That’s where you’re at. You’re self employed. And some people can make a fortune, just being self employed and being the guy and keeping a small team and just, just doing what you do in self-employed.
And then you start moving over to that business owner. Once you start the deals, once you get the consistency, once you build up your leadership skills to be able to hire somebody, and then you eventually are making enough money to buy assets. And that’s when you turn into an investor, then when you’re an investor, that’s where you’re getting that passive cashflow. I mean, is that kind of your game plan? Is that your roadmap? Are you trying to get to the point where you’re buying or getting to the point where you’re buying assets or real estate so that you can get passive cashflow?

Gabe Capellan:
Yes. I mean, my goal, my primarily goal this year is getting one rental. That’s my primary goal at the end of the year, at least getting one rental. So, next year I can get like, let’s say three or four and be developing myself, but I want to get a rental this year. That’s my goal. And I think I can do it. I think I can do it. I’ll give the glory to God. That he has put me in the ride business, I’m really, really faithful guy. So I appreciate everything that he has given to me.

Brent Daniels:
That’s incredible. And so why did you move to the United States from Dominican Republic?

Gabe Capellan:
Just trying to look something better in… My life was really good over there, to be honest with you. My dad have a bookshop over there. He’s a salesman too. I’ve been selling books since, I don’t know. I’ve been in the selling business since I’m a little kid. I remember when I was like eight, nine years old, I used to bring books to my school and sell it to my classmates. So I mean, I always selling thing and I know I have the skill. So when I transferred that to real estate, it was like mind blowing because the first time, the first time I actually grabbed the phone and start calling. I made an appointment.

Brent Daniels:
Come on.

Gabe Capellan:
In that first day, I made an appointment.

Brent Daniels:
Everybody listening to this, or if you guys want to put a face to this voice, definitely check it out on, Brent Daniels real estate on YouTube and check out Gabe, check out myself in this interview. It’s definitely worth the watch, but that is great. I mean, absolutely incredible.

Gabe Capellan:
So I remember my first day calling, I was so afraid, but I made an appointment and I went out there and actually, I almost grabbed the contract. The thing is that I really didn’t know the market. You got to know the market. So, that’s what TTP Wholesaling Inc., they teach you how to learn about the market, where you at. So, actually could be a deal. Cause the lady wanted to sell me like for 50. And I think, look at it on the MLS and they sold it for 54, something like that. But in the time I didn’t really know about, what I was doing.

Brent Daniels:
Yeah. So you’re doing this full time though. And by the way, listen guys, the chance that the first time you call and you get an appointment and a deal is so low. I mean, you’re, you’re really setting them up, getting everybody excited, but keep going, keep going, keep going again. When it comes to the rejection and talking about it in this book, Go For No, really it can be energizing. It can be exciting. I think that there is so much more conversation that needs to be had about energy management and making sure that you understand that as you are starting to make calls and building up your endurance, talking to people all day long, it can literally energize you. It doesn’t have to drain you. It can energize you. And I mean, you go eight hours a day, right? So give me-

Gabe Capellan:
Eight hours-

Brent Daniels:
Talk to me about your schedule? When do you wake up? Give me until you go to bed.

Gabe Capellan:
Alrighty. I’ll wake up around, probably eight or nine. It depends. I’m going to start cold calling sometimes around 11, 11:00 till 8:00 PM. So I can go more.

Brent Daniels:
And if you don’t have appointments, if you’re not doing lead follow up, because if you’re just listening to this for the first time guys, there’s three parts to your wholesaling business. One is lead generation and that’s the engine of your business. Okay. That’s what’s going to give you the opportunities. That’s when you were having quality conversations with distressed property owners or the representative of distressed property owners. A lot of people get they’re deals from other wholesalers or from an investors or from real estate agents and attorneys. So, but it’s having those quality conversations. It’s lead generation.
The next one is conversion. This is the lead follow up. This is the appointment. This is getting the contract signed. And the third part is your exit strategy or disposition. Do you want to wholesale it? Do you want to flip it? Do you want to hold tale it, do you want to keep it for your portfolio? Do you want to live in it? There’s a ton of different exit strategies, but so when do you, I mean, you’re saying for eight hours, you’re generating leads. You’re in that first phase, you’re in that engine room of your business. Are you fitting in that time when you’re doing your lead follow up, is there a specific time of day that you do that? Or do you just kind of sprinkle it in?

Gabe Capellan:
I have like a list of follow ups that I have to do every day. So I kind of clone it. In Mojo you can separate it in columns. So I put my follow ups and what I do, put triple dialer and the follow ups and whoever answered the phone, I talk to them and I try to not go to every appointment. Cause if I’m going on an appointment, I’m going to get a contract. So I try to qualify the lead the most that I can. See if I can get it over the phone without going over there. So, that way I have time to do something else. Like today after, after we finished this, I’ll probably go door knock somebody that, he ghosts me and I’m not going to let him ghost me. It’s a good deal. So I’m going to go there and door knock him, bring the contract, sign and I’m pretty sure I probably could get it.

Brent Daniels:
Yeah.

Gabe Capellan:
Because we already, we agreed on a price. That is the hardest, the hardest part.

Brent Daniels:
I love it. I love it. I love it. I love it. And so you mentioned something in there, and for anybody that isn’t familiar with the podcast that I do and I talk about it all the time, but what you said, something about really pre qualifying those leads. And I know that you know this, but what do you pre qualify these people on to make sure that it’s somebody that, like you said, you go on the appointment and you get it signed. So what are you looking for when you’re pre qualifying them?

Gabe Capellan:
The first thing I’m looking for is that they are the decision maker. The second is that they are ready to rock and roll. You’re ready to close in the next 15 days.

Brent Daniels:
Yep.

Gabe Capellan:
Alrighty. If they’re ready to close, I’ll move on. And the third one is the price. The price is the more important thing. And to sentimental attached to a property. Cause sometimes you can get the time line, you can get everything, but at the end they have sentimental attached to their property and they will not sell it. Even though you give him a really good price. So that’s the fourth thing I try to get from sellers.

Brent Daniels:
I love it. So we break it down. When we talk about it, is the condition of the property, right? You obviously are going to get that. And I think you already figured that you already have that. So I get it. So you want to know, if you’re just getting brand new in this. You want to know the condition of the property, how much does the estimated repairs have to be? Now, could they be lying to you, do they tell you as beautiful when it really needs a total renovation? Sure. But it gives you an idea of where you can start numbers wise so that you can start penciling the numbers. Second, which Gabe mentioned there, is timeline. When do they want to sell this? When do they want to be done with this? The third one that Gabe mentioned was motivation. What is their emotional connection here? Why emotionally do they want to sell this? What is the problem that Gabe can solve?
And then the fourth one is obviously the price. You need to know what their expectations are, so that you know, if you’re way far off or if they’re way far off, or if you need to pull them back in with some data and understand. And the longer that you talk to them, the more you’re going to understand what personality style they are and how to communicate with them. So I love it Gabe, and I love that you said, you know what? After this, after this podcast, I’m leaving here with a contract, I’m going to hunt down somebody that’s ghosting me. I’m going to go to his door and I’m going to get a contract signed. Cause I know he needs to sell, and listen, what I heard there was Gabe is so, so, so, so motivated.
And he is putting his, his hat on as his helping hand his, his service value hat on to go to this house and… That was weird way to say that. Anyway, to go to this gentleman’s house and really be of service to him. Because, a lot of these people won’t make a decision themselves. They’re waiting for you to literally show up at their door and help them, hold their hand through this process. And that’s what he’s talking about. That’s what I heard. So a really great game. So let’s break down a deal man. Let’s break down a deal. Let’s break down a deal that got you excited, that you cold called. You got somebody and we can break down. So do you have the one in mind?

Gabe Capellan:
Yeah, I going to break down one, that it’s actually special. It was closed last week and we made like seven grand on that one. We were supposed to make a lot more, but we’re in the business of helping people. So it’s not about the money. If you chase the money, never it’s going to come to you.

Brent Daniels:
Yeah.

Gabe Capellan:
You got to chase problems. You got to chase problems. Cause that’s going to give you the right amount of money that you are chasing, not chasing the money, chase the problem. So we found a lady that, she was living in a condemned house, literally in a condemned house. I mean if you see that, that’s like, for me, it was heartbroken. So I went there, the lady really wanted just 10,000, so that she can move. But, she didn’t told me she had a loan on the property, we found after we did the title, search had a loan and everything.
She owed $18,000 on that condemned house. That, is [inaudible 00:17:34]. I’m telling you, it’s the worst you can ever imagine. But we did, it was like, okay. So, you’re going to about to go to foreclosure. You’re going to, the city was, trying to take them out of the house because the house is condemned. So she can not live in the property. So what we did, it was like, we found her a rental so that she can go. We closed on the property, we sold it for 25. We pay her the two months of rent for the other house. We made less money, but we solved the problem. So that way, she didn’t have to, take out of her pockets. Cause she didn’t know, she didn’t have money. So that’s what we did and I feel really great.

Brent Daniels:
So what list was this on?

Gabe Capellan:
I think it was code violation.

Brent Daniels:
Awesome. And do you get that straight from the County? Do you get it from a source? Where do you get that from?

Gabe Capellan:
From the County [inaudible 00:18:28].

Brent Daniels:
And that’s just online or do you have to go to the like actual County office?

Gabe Capellan:
I mean the first, I was getting it from a source, but I was not getting the right names. So I started sending, freedom of information act, something like that. So I started sending that to the city and they send me a completely list of, I don’t know how many properties. So, I started doing what I can, cause I don’t have a BA. So I started doing my Excel, by my own. Trying to get this. So, when I had like 500 on Excel, I skip trace it, I use batch and I got the lady’s number. And she had older wholesaler really approaching him about the house. But the older wholesalers, they were not caring about her situation. They were only caring about the house.

Brent Daniels:
Of course.

Gabe Capellan:
So I had that advantage that I really… You guys teach us, to care about the problems of the people. So I solved that problem and I get paid.

Brent Daniels:
Yeah. Well listen, we talk about it. But I think we just naturally, just attract unbelievable people with big hearts that want to be of service to their community, like you. Like everybody that’s in the TTP family. It’s really interesting that you mentioned a couple of things. You mentioned that the freedom of information act, will you break that down? Because I, I mean, I’ve heard of it. I haven’t had to use it here in Phoenix. But I think basically the idea is, and educate me and everybody listening and watching, you send in a document that they are like, “Hey, you need to give me the code violations.” This is a public data, right? If they’re stiff arming you, if they’re kind of stopping you at the doors and saying, “Hey, we don’t have that list.” You hit them with the freedom of information act and they have to provide that. Is that right?

Gabe Capellan:
Yes, sir.

Brent Daniels:
And is that system just not online?

Gabe Capellan:
Yes. I saw that on a video of Daniel Moore. He told me like, cause I was trying to get the water shut off list. I still haven’t got it. I don’t know how to get it. I’m going to figure it out. But he taught me, you got to go freedom of information act and everything. I saw some videos and you know, I just implement what I saw on the videos. Cause you see a video and you don’t take action. It’s like, for why you’re seeing it. So-

Brent Daniels:
Yeah, oh 100 percent.

Gabe Capellan:
I saw it and you know, I just send a freedom of information act and they send me like a list of, I don’t know how many, how many houses? Like 5,000, something like that.

Brent Daniels:
I love it. Throughout the whole, probably state. Yeah. That’s crazy man. And so when you talk to this gal for the first time you picked up the phone, you called her, right? She got on the phone. What does she say to you that you felt like, this is somebody that has a problem and I’m going to be able to help her.

Gabe Capellan:
She told me no, she told me no, I don’t want to sell. Okay. I’ll move on. But I don’t know. I think it was God that sent me to that lady. I was driving around that neighborhood and I saw the yellow sign on the door, condemned, and I saw the address and I say, this house looks similar to something I have. So then I went, I went home and I phoned and yes she said no to me, the first time I call her. So then I call her again and she told me yes. And then she, explained me everything and then, okay, I understood.
The first time I went there, I didn’t even put her to sign any contracts. So that way she felt that I was really trying to help her because all she told me was that everybody that was going to the house was trying to make her sign a contract. Since the first moment they got over there, they didn’t even know what’s going on. They didn’t even know that she was going to go to another place. Nothing. The lady was about to be homeless. Literally she had three days until the city was going to kick her out of the house. And we saved… We did that before she got kicked out of the house. We had like three days.

Brent Daniels:
Did she get anything to help her? You know what I mean? Did she get some funds at the end of it to be able to move on? Or did she have different situation or what happened?

Gabe Capellan:
No. All we did is like, all she needed, it was a new house. So all we did was we tried to find her a new house. We asked her if she needed some moving or something like that. And she said she likes to create her own thing. So they did it with their own family. I think our grandson had a truck and they, they just moved. So, at the end she didn’t get nothing because remember the pay off of the house came at 18,000.

Brent Daniels:
Right.

Gabe Capellan:
When she started receiving calls from other wholesalers, all they were offering was 10.

Brent Daniels:
Yep.

Gabe Capellan:
So nobody wanted the house. You know, I was not looking about the house. I’ll probably, I say, if I get 19 it’s fine, at least they can pay off the house. Save her from a foreclosure so she can have a new house. Cause with a foreclosure, she would not have be approved to move on to a rental.

Brent Daniels:
Yep.

Gabe Capellan:
So, so what we did was we tried to remove the foreclosure from her credit. So we found her a house. We put her in that house, we closed the deal. We sold it for 25,000 and we made some money at the end.

Brent Daniels:
Made 7,000, hold on.

Gabe Capellan:
I was waiting for that.

Brent Daniels:
Absolutely incredible. The best part about that is you truly solved that lady’s problem. I mean, you stepped into her life as a complete blessing, not a burden. And you changed her life. I mean, you really helped her out in a really difficult spot when everybody else saw this, as I need to get it lower and need to get it lower, just a numbers game. I don’t really care. You went in and you cared and you really took care, and you took care of her. You really did. And I think that, that’s what this business is all about. And you said right here and I wrote it down as you were talking, it’s don’t chase the money, chase the problem. I absolutely love that. So I mean, that is huge. So how much have you made? So you joined in, I wrote it down. He joined in December. You really didn’t start going until January. And then now you’re about to close deals, five and six. What’s the total amount of income over those deals?

Gabe Capellan:
Probably around 45 total. 45 in total.

Brent Daniels:
With the two that are closing or is that the money-

Gabe Capellan:
Oh yeah. With the two that are closed, and without that two is around 30.

Brent Daniels:
Awesome. Awesome. So you’re just building up the momentum in the first six months. I mean think about where you’re going to be after your first year. I mean, you must be just so excited.

Gabe Capellan:
I mean, my goal is to make six figures and I think I can get it. Right now, I just set a new goal, three contracts every week. I think I’m going to get it this week. And I just work hard. I just really work hard and I’m the type of guy that, I’m competitive, really competitive. So if I see something successful, I want to be the best.

Brent Daniels:
Yep.

Gabe Capellan:
So, that’s my work ethic. And if I got to work 10 hours, eight hours, 12 hours. I don’t care. I work it, because at the end I was working 10 hours a day on construction. So eight hours a day calling, closing. I like closing. So that’s easy.

Brent Daniels:
I love it.

Gabe Capellan:
I want to give a shout out to, [inaudible 00:25:57] , his from home buying home selling. I don’t know if you know them in Texas.

Brent Daniels:
Yeah.

Gabe Capellan:
When I first started, they have on something they call the cash hour, something like that. And when I first started, I know about sales, but transferring sales to real estate is a little bit hard. Cause it’s not the same selling books and selling houses.

Brent Daniels:
No, it’s a much longer process for sure.

Gabe Capellan:
All I can recommend is like, if you see something go the harder you can. When I close my first deal, I quit my job. Even before that, I quit my job. When I knew about wholesaling, I quit my job. I’m not going to go work. I sold my car so I can have the money to pay rent for two months. I say it to myself, I’m going to get a deal before I spent all this money.

Brent Daniels:
Yeah.

Gabe Capellan:
I live with my girl by myself. So I got to pay rent. I got to pay all the bills, so I say okay, I’m going to sell my car. So that way I don’t have to work. We had one car, and the moment we’re two. She go to college. I do my thing and I say, okay, I’m going to sell this. And I’m going to have money for two months. And in two months I’m going to get a deal. And in a month and a half I had a deal, 17,000.

Brent Daniels:
Incredible, incredible. So if somebody wants to reach out to you, what’s the best way to reach out to you?

Gabe Capellan:
They can reach out to me in my Instagram, Misters Capellan Investor, misters, that’s M-R-S Capellan C-A-P-E-L-L-A-N Investor. And they can follow me on Instagram. Any question you guys have, I’m not an expert. I have six months. I’m just starting, just like most people. Just take action. Even though if you don’t know what you’re doing, like I was not knowing what I was doing until I joined the Tribe. And after my first deal, even after my first deal, I didn’t know what it was doing.

Brent Daniels:
Sure.

Gabe Capellan:
I think it was like after my fourth deal that I kind of learned, so you don’t got to be an expert, to be successful in real estate. You got to know how to solve problems.

Brent Daniels:
Unbelievable. 21 years old, 40,000 in the first six months. You are on your way, brother. I absolutely love it. Thank you for being on here. One thing that he mentioned was a resource batch, skip tracing.com. That’s where you get the most accurate phone numbers for the addresses that you’re trying to get ahold of. Batch skip tracing.com. And if you’re interested in joining the most proactive tribe, the most proactive group, the most proactive family in real estate investing, it is the TTP family, go to wholesalinginc.com/TTP. That is wholesalinginc.com/TTP. Scroll down. If it feels good in your gut, sign up for a call. It’ll either be with me or my right hand guy. And we look forward to that. Gabe, thank you so much for being on here. Really appreciate it.

Gabe Capellan:
Thank you, thank you.

Brent Daniels:
You’re a true inspiration. And everybody else out there as always, I love you and I encourage you to talk to people. Till next time. See ya.

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