Posted on: December 10, 2020
WI 577 | Wholesale Deals

 

Today’s guest has done something quite impressive: he made a whopping $124k in one of the most competitive markets in the country—Inglewood, California. And what’s even more amazing? He did it all in his first year!

Coby Obiesie is an inspiring wholesaler from California. While he graduated with a business degree, he knew working for others is not for him.

To pursue his vision of starting a business and working for himself, Coby tried everything. He even became an Uber driver just so he can save some money to fuel his passion for business.

If you want to know what patience, persistence, and perseverance looks like, consider this episode a must hear!

$124k in Wholesale Deals in One of the Most Competitive Markets in the Country

Episode Transcription

I am thrilled because I have somebody in here that I’m going to interview that has done $124,000 in deals in his first year in the competitive market of Los Angeles, more specifically, right out of Inglewood. It is my pleasure to introduce you to the show, Mr. Coby Obiesie.

It’s nice to meet you, finally. It’s good to be here. Thank you for having me on. It’s a pleasure.

We’ve been talking, texting and been involved. I’ve been seeing the progress that you’ve been going through. It’s exciting. Rewind the tape for everybody and tell people who you are, where you’re from and your real estate journey so far.

I’m from Los Angeles. A little bit about myself is my father was a real estate broker and investor so I grew up with real estate in the household. That was my start. Every now and then, my siblings and I would work in the office. We’d pick up phone calls. That was around high school. I had a little experience with talking to sellers. I knew the language a little bit but I wasn’t good at it and I didn’t have the interest that he wanted me to have in it.

I went to college. My mother helped me pick my major. I did Corporate Finance and Accounting. I wasn’t interested in it. I had no desire to do anything business-oriented. While I was in college, I was studying on my own. I’d go to the library, study philosophy, history and metaphysics, those subjects. I’d come back home and my mom and dad would see the change but I wasn’t talking about business and corporate finance.

I’m Nigerian so they’d ask me, “What are you studying? I sent you to college to do Corporate Finance. You are talking about this and that.” Long story short, I finished in 4.5 years. I gave my dad a degree and I said, “Here you go. I did that.” I didn’t do anything in business. I knew that I didn’t want to work for anybody. That was my main thing.

When did you discover that?

In college.

What was it? Do you remember?

The first job and only job I ever had was in college while I was taking Corporate Finance and it was Wet Seal.

Retail.

I was a stock boy and I was in the back all the time in the little room. I was like, “This is not my life. I know that when I graduate, I’m not going to do 9:00 to 5:00.” The manager was a sweetheart but I could not see myself having a manager. I had to have my own business. While I was in college, I was also doing spoken word poetry and I would perform as an artist. I knew that when I graduated, I wanted to go on that journey as an artist. That’s what I did. My brother and I did the same thing. We did music. It was around 2010 when I graduated. I came back down to LA, pursued music and built a pretty good underground following in music.

What kind of music?

Hip hop, reggae soul, jazz. It was a culmination, a fusion of genres. That was my passion, writing poetry and doing spoken word but it wasn’t giving me financial stability.

WI 577 | Wholesale Deals

Wholesale Deals: “Do you have any other properties that you may be hoping to sell in the future?” That was the golden question because it opened the door.

 

That’s the thing. It’s interesting being an artist and looking at the business side. How do you go after your passion, your purpose and all of that if there’s no money coming in? That’s the realistic look at it.

You said it best. For me, I was like, “I can’t continue doing this without bringing in the money that I know I need to take care of myself.” Fast forward, my wife and I, girlfriend at the time, got married and we had our beautiful daughter. When she was born, it shifted. I knew I needed to take that next step. That’s what triggered everything for me. I got a little more serious. I told my wife that I need to do something different. I knew real estate was there but I didn’t take immediate action but I did take action in the summer of 2019. I started to watch guys like yourself on YouTube. Long story short, after watching YouTube University and learning from guys such as yourself, I took action in August of 2019.

Your real estate origin story is unlike any I’ve ever heard. Usually, it’s like this, “I read Rich Dad Poor Dad and now I’m in real estate.” That’s 80%, 90% of that. You had a vision that real estate was where you needed to spend your time, your efforts, your skills, your abilities. It’s Incredible. In August 2019, you started taking action. What does that mean?

I TTP. What you are saying to do I did. What I did is I got an app called Vacant House Data Feed from a guy named Cameron Dunlap. I didn’t know if it was going to help but I’m like, “Let me do something.” I then got a Cash Buyer Data Feed. For people reading, I don’t know if he still has it but you can check that out if you also need something to start out with.

I didn’t know too many systems at the time. I used that list. I tried to go to the county one time for probate and that was a disaster. I didn’t know how to do it. I said that I’m not going back again. In downtown LA, it’s a mess. I didn’t want to do that. I started calling from that list, the Vacant House Data Feed. I spend five hours a day calling every day and all night.

Were you scared when you started?

At first, I was nervous.

The first call. The first getting going.

I know my story before taking a dive into real estate is a little deep but because I was an Uber driver too for two years, I was used to talking to people, complete strangers. After two years of doing that, I was talking to people. I was nervous about how to do it because I felt I didn’t know that much about real estate, especially wholesaling. After two weeks, it was cruise control.

I love that you said that about how to build up your experiences with conversations with strangers. That’s what it’s all about. For people who think, “I want to do this but I want to hire people to make the calls first,” I always say, “Talk to 1,000 people and ask them if they consider an offer on their property.” You could talk to anybody about anything. It blends into the rest of your life forever. You did flip that on its head. You talked to everybody about everything and now you took that experience and the way that you communicate to be able to bring that to real estate and your first deal.

We’re going to talk about that.

You were calling 5 hours a day, 5 days a week.

My wife was encouraging me, “Did you make your calls?” It was hard having a newborn and doing it but I had to make it happen. I had a broken Samsung Galaxy. I didn’t have the Mojo yet.

You were hand dialing. You didn’t have any systems and dialers making the calls for you. You were hand dialing five hours a day and got the system.

Even if it takes you a year and a half, just have that mentality to continue. No matter what, if you have that, you cannot fail.

I got the system around October 2019, the Mojo Dialer.

How did that change your life?

I was like, “Where has this been?” I had a single-powered dialer but it still helped tremendously compared to using the broken Samsung.

I remember making hand dials. This is 2012, I was making hand dials. I jumped on the dialer and it was conversation after conversation. I was like, “I’m going to get good at this because it’s so much easier.” The processes and the technology take out a lot of time and effort to set everything up and focus. It helps you focus on making the calls. You’re having conversations with people and building up a pipeline of leads. What list did your first deal come from?

My first deal wasn’t a list. My first deal was from a Craigslist post. The first contract that I got was from that list but I canceled it. I couldn’t close the deal. It took me seven months to finally get a truly motivated seller and this didn’t happen through a list. It was crazy. At that point, I started to spend more money on systems and marketing, such as cold calling, no DM. I got a little strategic. I don’t know if it is a strategy but let me post some Craigslist posts. This came from a bird dog post. I was posting to get a bird dog to help me with finding properties.

What does this post say?

I didn’t call them bird dogs but the title was bird dogs. This post says, “I’m a local real estate investor. I’m looking for distressed properties to buy in the area. I’m looking to grow my team of property finders to help me. If you find a property that we end up closing on the property, I’ll give you $1,000 for finding the property.” I got different replies but I got one reply that stood out, which was from a lady who wanted to sell her house. At first, it was a house but it was a property that she owned. She was a tired landlord. She didn’t want anything to do with it anymore.

I immediately TTP. I called her. Once I called her, it was the most motivation that I heard from a seller throughout the whole seven months that I was calling people. I didn’t even waste any time. I went from Inglewood and I drove to meet her in Granada Hills, which for people who know LA it’s maybe an hour away. I met her at the elderly home business. She’s a sweet Filipino lady. She told me her whole story. She wanted too much for the property. I came in maybe $30,000 to $40,000 lower from what she wanted. I still felt like a rookie even though I was seven months in. She loved my personality. She ended up telling me, “I’ll call you back.”

You build a relationship. It’s not a surface-level rapport. You were going in there and asking questions. You want to see if there is a problem that you can solve. What was the condition of the property?

The condition wasn’t that distressed because there were about six elderly people still there. It was pretty nice. The backyard needed work. It needed repairs to modernize it.

Is it a hospice care house? Is it a retirement house?

It was more of a home health situation. She wanted to be done with it. She pretty much said, “I’ll call you back.” I’m like, “Hopefully I didn’t kill this deal.”

Do you remember the offer you gave her?

I remember the deal that we closed but I don’t remember the offer that I gave her. She called me back a few days later and she said, “I’m going to go with another buyer.” This is for this property, I’m like, “What do you mean you’re going for another buyer?” It’s fine. I ended up finding out that pretty much she owed a lot on that property, not mortgage, she had tax liens so she only got $10,000 out of it. The buyer who ended up beating me to the punch bought it almost retail so he was the right buyer for her.

WI 577 | Wholesale Deals

Wholesale Deals: If you want to do more transactions in the future, you’ve got to trust the timing, just follow it, respect it because that could be a deal killer.

 

Some buyers for the properties that are elderly care, they’ll buy it pretty close to retail value because the cashflow from those is great that it’s a great investment for specific buyers. For clarification, people were renting out rooms. Those rooms rent out with the staff and the medical care is thousands of dollars for each room.

That’s when I told her, “He was the right buyer for you. Congratulations on that.” She was like, “I only got $10,000.” I was like, “Okay.” Fast forward, while I was at her house the conversation was like, “My husband, he’s elderly. Eventually, we probably want to move back to the Philippines.” I asked her, “Do you have any other properties you want to sell,” at the time. She’s like, “Maybe my house later on but probably next year.”

If somebody is shutting the door, closing the door, taking an offer that’s from a different buyer or they’re saying no and they don’t want to sell this property, make sure you ask the follow-up question. “Do you have any other properties you would consider an offer on? Maybe something that needs some love. Maybe something that needs a renovation.”

That was the golden question because it opened the door for her to talk about the house that she was currently living in at the time. She was like, “My husband’s getting old. We probably want to relocate back to the Philippines.” I said, “Let me know in the future whenever you do decide to move and I hope I’m the first buyer you contact.” I was thinking she was going to call me after maybe 7, 8 months from now about it. She called me in two weeks.

She doesn’t call the other guy that bought her property. She calls you because you built a relationship with her. She got more. Probably the offer that you gave her wouldn’t cover what she owed on the tax liens and everything else. She made a little bit of money that you initially went after but she knew that she wanted to work with you anyway. That’s why it’s important to go in there with that kindness, certainty, likability, communicate with them and see if you need to be there for the seller. If you’re there for the seller, you will win.

That’s what I learned through that whole situation because I was surprised that she called me that soon. I didn’t want to waste my gas so I got the number before going out there. She said, “I want to move from my property.” I was like, “What’s the timeline looking like?” She said, “As soon as possible.” This is pre-COVID. We didn’t know what was coming but she was motivated to leave her property.

I did my numbers and my due diligence and I asked her, “What do you want for it?” She said that she wanted $680,000. I’m like, “Okay.” I was at $660,000. It’s close. I was like, “Can you do $660,000? I can do $660,000.” She was like, “Okay.” Immediately I drove out there, viewed the property. It’s a beautiful property. Mid-century home. The after-repair value was $900,000. It was a beautiful home. It needed work. I met her husband and everything.

I feel like you’re going to say every house is beautiful. I bet it needed some work that she was selling it in cash as is and not putting it in the market.

It needed work. I liked the style of it. It was mid-century. I pretty much sat at her kitchen table. It was one of those things where I felt more confident now because I built a relationship with her. By doing so, I didn’t hesitate with the agreement. I was like, “Let’s get this thing going. We can close in less than 30 days. Hopefully, we can make this transaction smooth.” Her husband was like, “You’re going to sign your life away.” He was joking but she was ready. I got the contract. I was happy.

I already had two buyers that I’d built rapport and a good relationship with for that seven-month period because I had a couple of deals that didn’t go through. A deal of my own, the October deal that I had to cancel. It was a buyer that was an acquisitions manager. It was these buyers who I knew that they were buying because I looked them up. I looked at the properties they were buying. I already had at least a solid three that I knew would probably take this property. I was confident because my buyers’ list at the time was only 50. I blasted it out.

I would assume you’re trying to target people that would do a fix and flip. Clean it up and sell it for the $900,000 if it’s all looking great. How big was this house? Do you remember? Are we talking they need to put $200,000 into the rehab?

Maybe $100,000 to $150,000

There’s a lot of spread in this.

There was a huge spread.

You don’t know where your first deal is going to come from.

How did you price it when you sent it out to your buyers?

I comped the properties in the area. What I did was I looked at the other properties that had the same square footage, the same condition or the style but how it looked after all the repairs were done. The square footage and the style of the home. Estimated repairs and the radius as well. I didn’t comp for anything more than a mile because it was a specific style home. I also looked at another cash buyer who bought nearby in the area and I was able to do that through Zillow. I looked it up through the Cash Buyer Data Feed. I found that if somebody is buying it close to this price for all cash, maybe I can do the same thing. I blasted it out in an email and I got eight fast replies.

One buyer who buys a lot of properties in the Inland Empire was interested. I priced it for $740,000. Initially, I was going to do $780,000 but I’m like, “That’s probably going to be too big. Let me do $740,000.” The buyer from the IE came down at $700,000 and he didn’t even see the property yet. I was like, “Let me get some more guys in here.” I did an inspection date two days after and I had everybody come through.

It was funny because as I was driving from Inglewood to the property, I usually take the freeway on the 405 but I took the backstreets. As I was driving, I saw a billboard and I’m like, “I know I’m going to get a buyer today. I refuse to cancel this contract. I will get a buyer today. It’s not going to happen again.” That incompletion that I had from the first one is not going to happen. I was talking myself into that. I see a billboard. On the billboard, it says, “Picard.” I didn’t know what that meant at the time but 30 seconds after looking at it, I was like, “There’s something about Picard that I’m reading correlates with this deal and me closing on the deal.”

What’s Picard?

Picard is the last name of the acquisition manager that I’ve been building a relationship with and it’s on a billboard. When I get to the house, I’m like, “Picard. They’re going to be my buyers.” I don’t know if I should say the end buyer’s name on the show but the company name, Breckenridge Properties. He works for them. For anybody in LA, you guys got a cash buyer, I enriched you right now. I was like, “He’s going to be my buyer.” I showed the property. I’ll speed through that process. They were all interested. One buyer almost killed the deal. He came too early, knocked on the door and the seller called me. She was like, “Coby, I have somebody here who’s walking through the property.” I immediately called. He was the acquisitions guy, the field manager. Whatever that means.

He was a sales guy for them. He showed up early because he wanted to get to the property and he was being inconsiderate, to be honest. Some in this industry are inconsiderate. They’re like, “I’m going to go when I go and whatever else.” Sometimes you have to deal with that if you’re sending it out to multiple buyers.

I had to pull him to the side after I got there. I’m like, “You came a little too early. If we want to do more transactions in the future, follow the time I set.”

Respect it.

She was a sweet lady. That could’ve been a deal killer. Everyone came at a low price, $710,000, $700,000. To me, I’m like, “I’ll be happy to walk away with $680,000.”

It’s your first deal. You’ve got a good deal here because you’re building so much of your efforts off of faith. When it becomes a fact that you can make income from it, that’s when it sits in your brain and goes, “I can do this again.” Getting that first deal done is critical. This is a beautiful situation to be in where you’re like, “I can make a guarantee of $50,000. I can make a guaranteed $55,000.” Not guaranteed but you’re feeling good about it. You think that they’re going to close as long as the buyers have good reputations. It’s $60,000 and now it’s creeping. Who was the end-up buyer being?

I ended up calling the guy after leaving the house. I was like, “Your field lady came down. Can you do the asking price?” He’s like, “Hold on one second.” He waits for ten seconds or so and he’s like, “Yeah.” I’m like, “You can do $740,000?” He’s like, “Yeah.” I’m like, “Let’s do this. Let’s move.” I got too excited. I called my wife and I’m like, “We got this thing.” For everyone reading, they know what the assignment fee is now.

What did you net on it? Let’s ring this thing.

$80,000. It changed my life.

WI 577 | Wholesale Deals

Wholesale Deals: It took me seven months to close my first deal. What if I had quit at month six?

 

What an incredible opportunity to help out that seller that wanted to sell fast. Work with these buyers. You had several buyers. It was a hot deal but you stuck it out. If it was my first deal, I would’ve sold it to the first person that said yes. I know myself. You had the confidence to know that you could push this higher. There’s something about you that is special in that sense that you have that confidence knowing that I have something that I want to push a little bit further to see how much I can get out of that. That’s going to serve you for years to come in whatever negotiations or business that you’re doing. That’s powerful.

I received it.

It’s powerful. You’ve been a part of TTP. You’ve been involved, helping out, texting and communicating. It’s been wonderful seeing this whole journey that you’ve been on and being a part of it. Thank you for letting me be a part of it.

Thank you for letting me be a part of the TTP family. That projected me too. For anyone reading, I needed that accountability. Joining the program and being able to communicate with you, I can’t thank you enough for constantly enriching everybody, enriching myself, holding me accountable, responding to text messages. You have so much that you’re doing. I see what you’re doing. I know it helped me close the other two deals because it took me five months to close my second one and it happened after joining TTP.

You do all the hard work. You’ve got to be the one on the calls. You’ve got to be the one in front of the distressed property owners or the motivated sellers. You’ve done $124,000 in your first year. You went in and you asked for healing, better relationships and a financial blessing. Look at this, it’s incredible.

It’s life-changing. That’s the most money I’ve ever made in my life. I’m feeling blessed.

It’s just the start. Speak now to anybody starting out in this. They’re working to get their first deal. What advice would you give them?

Patience, persistence, perseverance. It took me seven months to close my first deal. What if I would’ve quit at month six? Quitting was never an option to me. For anyone reading, don’t quit. Even if it takes you 1.5 years, have that cognition, the mentality that I am going to continue to matter what. If you have that, you cannot fail. You will be successful. Do whatever you’ve got to do, even if it’s a Craigslist post. You don’t know where your deal’s going to come from.

As long as you are out there having quality conversations, you win. How do people get a hold of you?

You can email me at MeruEstates@gmail.com.

Coby, thanks for being on here.

Thank you.

It’s such an inspiration and story. It’s incredible. For everybody out there reading, if you are interested in joining the most proactive group in real estate investing with my man Coby here, it is the TTP family. It is the TTP Program. Go to WholesalingInc.com/ttp. Scroll down. Check it out. If it feels good in your gut, sign up for a call. I look forward to working with you personally. As I sign off, as I always do, I encourage you to go out there and share your gifts, skills, ability and talk to people. Until next time. I love you. See you.

Important Links:

About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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