Posted on: October 17, 2019
WI 317 | Virtual Wholesaling

 

Looking for a business that provides total freedom and flexibility while allowing you to earn as much as $400,000 a year? Virtual wholesaling might be perfect for you!

In the virtual wholesaling arena, Lauren Hardy is a total rockstar. The doting mom of two is currently crushing the virtual wholesaling market and is earning an average of $10,000 per deal!

After having two kids, she realised she wanted to have more freedom and spend more time with her family. Wholesaling virtually gave her the freedom she was looking for. Not only that, it also gave her income a massive boost.

In today’s show, Lauren candidly shared the processes, mindset, and techniques that has helped her successfully dominate the virtual wholesaling market. If getting into virtual wholesaling is something you are considering, you just can’t afford to miss today’s episode!

RESOURCES:

Wholesaling Anywhere—How One Woman Did 40 Deals Virtually

Episode Transcription

If this is your first time stumbling across us, welcome. You are about to experience the absolute number one best wholesaling show on planet Earth. If you are one of our loyalist readers, our Rhino tribe members, welcome back. Thank you so much for all the love and support. Most importantly, thank you for sharing the successes that you are having out in the marketplace by reading, taking the instruction that you get from this show, and turning that into deals in your market.

We talk on this show a lot about wholesaling virtually. What that means is basically you live somewhere, maybe it’s a major market, and this happens a lot. We talk to people that live in a major market. They feel like either because there are big companies that have huge marketing budgets or it’s a place where there’s a different real estate seminar every single weekend, pumping new people into the industry.

For whatever reason, it’s easier for some people in some bigger markets to work in smaller markets or virtual markets that don’t have as much competition, or maybe the deals are easier or they have a home base there that they can easily sell to a lot of their cash buyers. This is the perfect example. This interview that I’m going to have is with Lauren Hardy. She is out of Orange County, California but she virtual wholesales. Not only does she virtual wholesales but she’s also done over 40 deals in 2021. This woman is somebody that you want to take notes on because she is going to blow your mind with her processes, mindset, and ability to get deals. With all that, I want to introduce the lovely Lauren Hardy.

How are you doing?

I am doing awesome. Welcome to the show. This is a while. Lauren and I have known each other for years. We’ve seen a lot of changes in each other’s businesses. It’s exciting to have you on here. Why don’t you give everybody a little bit of background on what did you do before wholesaling? How did you find it? What’s going on now?

I started in more corporate real estate. I worked in commercial real estate and worked for different companies. It was definitely the 8:00 to 5:00 grind. Before I had a kid, it was totally fine. I could handle it. I thought, “I’m going to aspire to be a CEO of a company one day.” As soon as I had my daughter, that changed. I realized it was so difficult. I was commuting an hour there, an hour back working. Basically, I wouldn’t pick up my kid until 6:00 at night and see her for an hour, bathe her, and put her to bed. It was tough. I wanted more freedom. I’m now a single mom but at that time, I was married and my husband had a corporate job too neither of us had any flexibility at all.

It was my goal. I didn’t care what I was going to do. I was going to have a more flexible career. It could have been anything. I could have run into anyone and said, “You should do this. This will make you money.” I would have jumped on it. It happened that my brother started flipping houses a couple of years before me. I never thought to do what he did but I was like, “You have a cool schedule. Tell me about it.”

That brought me into flipping houses. I started with some courses like the Norris Group had a course and Mike Cantu had a funny course, old school guys. These are like some of the original educators of our time before it blew up. I listened to their courses. I said, “I’m doing it.” I went at it at full speed. I started with direct mail. I started as a house flipper in the Southern California market in 2011. It was a lot easier at that time to flip houses based on where the market was.

I sent some mail and got a deal. In my first deal, the net profit was $60,000. I was like, “This was so easy.” I made more money than I did at my corporate job for a year and did this on my lunch break, literally an hour a day of calling sellers back. I made my salary. I was like, “Let’s keep doing this.” I went with it for about a year. I worked both. I had my corporate job, 8:00 to 5:00, and on my lunch breaks, talk to sellers and make offers. I flipped three houses that year.

I started with nothing started with a credit card and some education and it evolved.

At that point, I was also pregnant while I was doing that with my second daughter. I thought, “If I can make enough money where I have my salary and savings, I will quit when I have her and won’t come back after maternity leave.” I did that. That was my start. I would also like to say I started with no money. I did not mean my ex-husband did not have any money at all. I started with a credit card. I had an $11,000 balance or something on my credit card, around the limit on my credit card. I was like, “Here’s my investment. Here’s my marketing budget. Let’s hope I can make this back.”

I started with a credit card and some education and it evolved. I went from doing those deals. I started dipping into wholesaling. I was wholesaling in Southern California. These are mainly flipped projects, and they got tougher and harder as the years went by. I was hearing from sellers, everyone, “I get these postcards in the mail all the time. I’m talking to five different investors. I also have these agents knocking on my door.” I realized that I live in a pretty difficult market. In Southern California, you have to be competitive to be able to make it here.

It’s great that I got my start there because I learned to be very competitive, and that has put me ahead in the virtual markets I’m in. It’s very difficult when you are in a market like Southern California, say LA OC type market, very high price. Everybody wants to live there. You are not competing with investors. You are competing with regular people who have cash. There are Chinese investors that dumped their money in California real estate. Being able to say, “I’m a cash buyer, and I could buy as is,” isn’t that competitive.

My cycle is so are you and a million other people. Give me the highest price you can, and that price is not something I could make money off of. I read the writing on the wall and decided to look into out-of-state markets. I have experience getting into three different out-of-state markets, all very different types of markets. I feel like I have a very well-rounded experience of working virtually in different types of markets.

You have your daughter and your job. You have to pick her up at 6:00. You barely have time. Your second daughter is coming and you are like, “We’ve got to figure this thing out.” It’s interesting to me. A lot of people put on their walls some dream boards or whatever in their mind, the big house, the car, the vacations, not many people put on their freedom of schedule. If you ask a lot of the successful people in whatever business, freedom of schedule is number one. You look at your week and your month and decide what you are going to do with it is a gift like no other.

It is absolutely incredible. Essentially, you were able to allow yourself to do these big flips as you were starting. You were doing this in 2011, getting this going, and starting this process. It’s absolutely incredible. It’s interesting on this show. Many people will say, “We’ve said it a lot. It’s collaboration. It’s not competition.” You said, “I’m competitive.” What you mean there is how do you distinguish yourself, your offer, and the process of purchasing properties from somebody else.

If you don’t distinguish it in a bigger market, if you are cash as is and pay the closing costs, you are going to get beaten by a drum because there’s always going to be somebody like the Chinese, somebody else, some big company or somebody that wants to live there that has cash. They’ve made a boatload of money in their career and are tired of living in Wisconsin, and now they want to live in Orange County. That’s what you meant by competition.

That is exactly what I meant by competitive. It’s not like I’m looking over my shoulder. It’s I have a website, business cards, and letterhead polished. We look like a real company. It’s legitimacy. Sellers want to know you are the real deal. I have been doing is sending a list of the 2019 purchases we’ve done to establish credibility. The number one thing that many people do not do is answer their phone or call sellers back within the same day. I heard from so many sellers that they say, “I called these other companies but I still haven’t heard back but you called me right back.” They can leave a voice. You didn’t answer the call live but called them back, send them a text, and be available. That’s what I mean.

You decided you were going to go to Nashville, Oklahoma City, and Tulsa. We won’t get into the why and how you selected it. Let’s give some instructions here. If somebody is thinking about going into a virtual market, what do you think are the most important things that they should know before making that decision?

WI 317 | Virtual Wholesaling

Virtual Wholesaling: So we like neither of us had any flexibility at all. And it was my goal. I didn’t care what I was going to do. I was going to have a more flexible career. Um, I didn’t any could have been anything.

 

You should know what type of market it is. What is the main play there? What are the buyers doing? If you are going to be a wholesaler, you want to think, “What is the end buyer’s game? Are they flippers like in California? Are they developers like in Nashville, where they are knocking homes down, building two in its place? Is it a renter’s market?” That’s the type of market where it’s probably a lower price point market. You are getting a lot of multiunit buyers and hedge fund activity. I think of it as the three-end place.

You want to figure out what market you want to play in. What pond do you want to play in? What do you want to do? Do you want to have where you are maybe not doing volume but when you do a deal, it’s a big deal, and that would be more of a flipper or even better developer market? Do you want more volume or maybe your wholesale fee is $7,000 to $10,000 each but it’s coming much more frequently? You are doing volume, doing maybe 5 to 10 deals a month.

That’s crucial. Phoenix is not a great rental market. It’s the same with Orange County for probably the same reason but basically, the price versus what you get in rent is not going to make sense if you have traditional financing on it. It’s not going to cashflow the way it will. If you can buy a property for, let’s say, $100,000, and it rents out for 1%, or $1,000 or $1,200. You could buy a house in your market, probably for $600,000, that rents for $3,000.

I will give an example. This house sold that I’m in for $745,000, and I’m renting because I sold my home for $3,000 a month.

There’s a great example. It’s important to determine when you are going into a new market who are the cash buyers. You can start catering and building your cash buyer database and know where they are at, where their attention is at, and how to market them. If you are sending fix and flip these houses, when it’s a primarily rental cash buyer, it’s going to fly under the radar. If you are talking about all of the metrics when it comes to owning a rental and you can communicate that effectively, you are going to sell those properties easier.

I do think when you are looking into a virtual market or if you are looking to wholesale in your own market, you need to reverse engineer it by going, “What are the buyers buying? What prices are they buying at?” You then know what type of sellers to target and what types of offers to give out. I did that in Oklahoma City at first. I was giving flipper-type offers out and realized that the name of the game is rentals. I didn’t know to look at what could this generate in rent and where do people want to buy out.

If it generates $1,000, where would they want to be for this type of property? I wasted a lot of time giving these as flip-type offers for a while. Sellers were like, “That’s too low.” After speaking with other buyers and also other wholesalers, I realized, “I’m offering too low. I’m not making the right type of offer.”

Do you think that’s the best way to do your due diligence when you are looking at a market? Do you think it’s speaking with people that are being successful there and seeing what’s working for them? Are you relying on data from certain data providers that show you cash buyers and what they are buying? You talked about reverse engineering. How do you know what buyers are buying in that area?

You can use a method of both talking to people, and I’m using data providers. I use ListSource. I will pull a list on ListSource. The first thing I want to know is, within the county or the Metro area of that county, are there at least a million people in the population? If there’s not a million in at least the Metro, not necessarily within the county but if they call it Oklahoma City as Oklahoma City Metro, it might be a market that’s a little small. Try to get to at least a million. What I found is I run out of people to market too quickly. I start with population and how many absentee-owned purchases are there?

Sellers want to know you’re a real, you’re the real deal.

We figure that out by going to ListSource. That’s super easy. You can pull a list of absentee purchases within the last six months. What’s that number look like? Look at that population and you are like, “It’s only 300. That seems low. Is it 1,200 or 5,000?” Those gauges how much activity is going on in that area. If you want to take the next step, you buy that list. You look at the buyers and organize the list by ZIP codes.

In ListSource, you don’t have to buy the list to do this but there is a way to look at the ZIP codes and figure out who’s buying or how many purchases are in each ZIP code for another day. Looking at the main ZIP codes going, “They are all central in this area. Stay out of that area.” You figure out where are the areas people are buying. In ListSource, you could even pull the square footage of the property. These are extras. You have to add them in. You can pull detailed property data and see what prices are they buying at.

All that data helps you reverse engineer, get a plan, and decide if this is the place for you. Other things that help are speaking to people there. Go on Facebook, and find the local REIAs Facebook forum. Get on Wholesale, Inc and say, “Are there any wholesalers out in Minneapolis?” for example, and talk to people and ask them, “How many deals are you doing?” If you say, is it competitive? Everybody is going to say it’s competitive.

I heard that a million times. That question is almost irrelevant. By talking to people, “What kind of buyers do you sell to?” From there, once you feel you’ve got a market you like, I would suggest getting another wholesaler that’s decently active in the area. You can give your leads, and you guys split the wholesale fee if they are able to move the deal.

When you are starting a virtual market, don’t even waste any time. Find a partner. You can maybe have 2, if you want, maybe 3. I know people that have had multiple and negotiated how the relationship is going to work and say, “I’m getting into virtual wholesaling, the benefits to you as I’m going to give you contracts. When I get a contract, here you go.” It’s free money. You send it out to your buyer’s list, call some buyers, and try to lock it up.

They will also be responsible for taking photos of the property, meeting the seller face-to-face, and saying, “I work with Lauren,” play that so it looks cohesive to the seller. I usually negotiate a 70/30 split. I get 70 because of my marketing budget. That pays for the marketing for the deal. For them, it’s free money. I always say upfront, “Let’s get this out of the way because there’s probably going to be a point where we’re not going to work anymore because I’ve gotten familiar with the market. I built my own buyer’s list. I might even hire like an employee or whatever.”

“I want to put it out there that this isn’t like a forever thing but it’s probably good for $25,000 this year for you or more depending on how long you work and how much you sell and how well we do.” Usually, they won’t turn that away. I always tell people I put on my marketing, go ahead, send this to your buyers if you want and add your fee on top but we will work a split if you want. Most people will be totally stoked to do that with you. I have never had anyone say no to that.

When people approach us to help them sell the deals, if there were to tell me 30%, I would be like, “All day.” I know Billy Bell, my Disposition Manager, is going to sell it for the most possible. I know that we are going to get more than they ever expected. It’s a no-brainer. All-day long, and we’ve got a robust and healthy buyer base. It makes sense.

It’s a great relationship for them. I would say you start there but on the back end, you are working towards having your own buyer’s list and presence there. That is what I did. I eventually worked on my own buyer’s list. I worked to have my presence and organically was able to afford to have a full-time employee there. You don’t even have to get a full-time employee. You can get what I like to call runners. A runner is someone to run errands for you. They look nice. They are presentable. They meet sellers. Say a seller is elderly and doesn’t have internet. They need to drop off a contract.

WI 317 | Virtual Wholesaling

Virtual Wholesaling: A new thing I do I’ve been doing is sending a list of the 2019 purchases we’ve done, you know, to just establish credibility. So you definitely need to be competitive.

 

They go run that errand and drop off a contract. You pay them $15, $20 an hour. If they are good enough, that might end up being where they are, your all-around boots-on-the-ground person. You can find them on Craigslist. Realtors who are struggling a little bit and getting started in real estate could use the extra money and work for you 5 or 10 hours a week. That’s a perfect person to be a runner for you.

Interestingly, you mentioned finding those boots on the ground guys or those runners on Craigslist. We do a lot of land deals too. We put a post for $50 to $70 on Craigslist. We’ve get a ton of messages and look through the ones. We find somebody that we like that looks reliable and gives us a little bit of background. We send these people to go pick up contracts, go and be friendly to the sellers. They are great. These are natural gregarious people that are expressive out there that love everybody. It works out well. It was $70.

It’s crazy what you can get. If you get somebody like that on your staff that can work with you if you are in a virtual market, then you’ve got boots on the ground to where you can run everything virtually, which is incredible. I want to switch tracks a little bit here because one of the things that I like about your business mind, and this is for everybody out there, is Lauren uses what works. She looks for what works. If something doesn’t work, she gets rid of it or replaces it with what works. We talked years ago about TTP. You were crushing with mail. You were doing other things and crushing it. You came and you are like, “It’s time to TTP.” Since then, it has worked out unbelievably for you.

It’s what I wanted to focus on going forward. It’s funny. I used to buy direct mail. I would buy postcards in bulk to save money. I have 90,000 postcards waiting at my postcard company for 2021. They keep bugging you, “When do you want to send them?” I’m like, “I don’t want to, honestly, because I still have to pay for postage.” It was so expensive. I’m doing better with TTP. The cost per deal is much better. The benefit of what I felt like with TTP was you are not waiting around for a seller to come to you. It’s nice to be more proactive instead of reactive.

For example, now I’m looking to paint this place. I rented this place, and it’s this awful green color. I have wanted to paint. I’m calling different painters, and the one guy I usually use quotes on me too much. I was like, “Can’t a painter come up to me now?” If they did, I probably would have jumped on it. If they gave a reasonable price, I jumped on it faster but I gave up. I didn’t like Ed’s price. I don’t feel like calling anyone. If somebody came up to me and was like, “By the way, I’m painting houses in the neighborhood. I will offer you a good deal.” I would have been like, “Come this weekend.”

I have it. I’m busy, and that’s what sellers are. A lot of sellers have it in their minds to sell a property. It’s either sitting vacant or they have this horrible tenant in it. They have a freeloading family member, and it’s awkward. They don’t want to kick the person out but they need the money. They get this call. They can tell their freeloading family member like, “I wasn’t thinking of selling but she called me. She’s buying a house in the area.” It creates deals out of thin air.

You’ve done 40 deals in 2021. Is there one specifically that stands out that we can talk about and break down on this because it’s important to break down actual results. Do you have one that sticks out that we can ring this bell and make everybody excited and understand how this works in real life?

When you do that many, I don’t feel like I have one that stands out.

Of the 40 that you’ve done, what income does that equate to you so far?

You can use a method of both of talking to people and also I’m using data providers.

My average wholesale fee is about $10,000.

It’s $400,000 in 2021.

It’s gross.

Your business from picking up the phone and talking to people is about $400,000.

I don’t know of a specific one that stood out because it’s a bunch of junk.

Your virtual guys are so crazy. It’s checks in your account. You don’t even know where these properties were, what the deal was, and what list.

I do stay pretty uninvolved too. I have the acquisition side and disposition. I’m in charge. My job is marketing, networking, and seeing what works. I spend a lot of my time talking to guys like you, “What’s working for you now.” Implementing it in my business, and then checking the results and making sure my acquisitions team is working on the leads I’m bringing in and looking at the leads that come in. How many do we have? I’m doing KPIs all day. That’s my job.

If somebody wants to reach out to you, send you a message through Instagram or something, how do people follow you?

I’m on Instagram, so you can DM me. It’s @ThisMomFlips or you can email me at Lauren@TMFRealEstate.com. Reach out to me, and I love to chat.

WI 317 | Virtual Wholesaling

Virtual Wholesaling: I do think when you’re looking into a virtual market, or really, if you’re just looking to wholesale in your own market you need to sort of reverse engineer it by going what are the buyers buying?

 

You are a single mom of two little girls.

Yeah.

Having your schedule available is number one.

It’s great. I could pick them up after school, and that’s what I do. That was a big thing for me growing up. My mom worked corporate world, and I never saw her. I thought, “I got to do it differently. I got to be able to pick up my kids from school.” It’s great to be able to pick up the kids from school. This business has afforded me that. This business isn’t always easy.

It’s very tough, and people underestimate that. It’s stressful. There are definite stresses but the fact that freedom of schedule has always been my motivation. It’s still in front of me. You could work for a company. It’s always there. I keep that in my head. If you don’t hustle, you are going to have to get a job. You don’t want to do that.

Thank you, Lauren, for joining us. Reach out to her if you guys are thinking about a virtual strategy or if you are in the Orange County area. She is a phenomenal resource. For all crazy proactive people out there that is looking to join the most proactive group in real estate investing, it is the TTP Program. Go to WholesalingInc.com/TTP. Check out the page to see what the program is about. Go check out all the testimonials. If it feels good in your gut, sign up for a call, and join Lauren and so many other incredible professionals around the country that have implemented TTP in their business and have been wildly successful. Lauren, thank you again for joining us. Say goodbye to everybody.

Thanks for having me, Brent.

You got it. Everybody out there, thank you for reading. I encourage you always to talk to people. Until next time. 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, and “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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