Posted on: April 27, 2020

In this time of community quarantines and lockdowns, doing things virtually has become the new norm. If you’re running a wholesale business, you’d be delighted to know that’s something you can do virtually as well. And today’s guest shared how you can make it happen!

Lauren Hardy is Wholesaling Inc.’s new rockstar coach. A highly successful real estate investor, she approaches her business with a “people first” mentality. Lauren started her real estate career in 2007 and over the years, she has developed the unique reputation of being a successful “virtual investor.”

If you’re considering investing virtually, Lauren can show you the ropes and provide expert guidance. In this episode, she tackled some of the basics of virtual wholesaling—the best approach to use, first step you should do, the importance of partnering with others, and many more.

You’ll definitely have a better and clearer perspective of virtual wholesaling after this episode, so don’t miss it!

Key Takeaways

  • Four different types of people that should consider virtual wholesaling
  • Best approach when it comes to doing wholesaling virtually
  • Indication that a specific market can be difficult and stressful to operate in
  • Typical fears people have when wholesaling virtually
  • The toughest thing you’ll need to figure out when in a new market
  • The importance and advantages of partnering with other people
  • First step she recommends when doing virtual wholesaling
  • Key performance metrics (KPIs) she tracks
  • Typical number of deals they make
  • What her team looks like
  • The biggest blessing the business has given her

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

Subscribe to Wholesaling Inc

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 telling you guys, if I can do it, so can you. I am your host, Brent Daniels, and I am absolutely thrilled because I have another Wholesaling Inc coach on this podcast with me, Miss Lauren Hardy. Lauren, say hello to everybody.

Lauren Hardy:
Hey, everybody.

Brent Daniels:
Here’s the deal, we are going to be talking about virtual wholesaling because I think now, more than ever, it is absolutely critical to consider the thought of going into a virtual market because, Lauren, we’re already doing it virtually now that we’re on a quarantine. You know what I mean? It’s not like we’re going to a lot of these properties. It’s not like we can get out and about. This is the perfect runway, the perfect practice version of starting a virtual wholesaling business. Isn’t that right?

Lauren Hardy:
Yeah. Now is no better time to learn how to go virtual, that’s for sure.

Brent Daniels:
Explain to everybody who you are. You’ve obviously been on the podcast with me before. You’ve done some podcasts. You’ve been on the Frank Daniels YouTube channel, which you’re on again now, but give everybody… you were in two virtual markets, is that right? And you’re starting a third?

Lauren Hardy:
Correct.

Brent Daniels:
Okay. Where do you live? What are your virtual markets?

Lauren Hardy:
I live in Southern California. I live in Orange County. It’s a very high-priced, highly competitive real estate market and very densely populated. I do operate in two virtual markets currently and I am trying a third one out right now. The cool thing about going virtual is you can really pull in and out of markets very quickly, so that’s another benefit I really like about it. But yeah, I do work markets that are out of state because California’s pretty difficult. It’s very expensive. It’s very hard to make the returns that most investors would want to make here.

Brent Daniels:
Yeah. Got it. We have just literally got off of a Facebook Live and you brought up some killer points that I wanted to make sure that was in the podcast here. You talked that there is typically four different avatars, four different types of people, that should really consider virtual wholesaling or that are currently doing that. Can you break those four down?

Lauren Hardy:
Absolutely. There are four different people, I think, that really would enjoy having that skill of being able to go virtual. One is someone like myself who lives in a very high-priced, highly competitive market, like a Southern California, like a Seattle, a New York. The other would be somebody who is in a very maybe low populated market where real estate doesn’t hold very much value, more rural areas. The other person is the more… I call them the vagabond or the nomadic person who wants to travel the world but they still want a business that brings them income. Then, the other person is just somebody who wants to be able to expand. Maybe their local market is fine, but they want more opportunity. They want to make more money. Really, it’s those four people that I think would really benefit from learning how to go virtual in the real estate investing business.

Brent Daniels:
I get this question all the time. I really do. Just with coaching different wholesalers around the country, some of them that are in the smaller markets are, hey, should I start here first and get some experience, build up some momentum, get some income coming through, get my cash buyer database setup, kind of use this almost like a beta test? My smaller market, and then expand from there. What do you think of that? Do you think that that’s a smart plan? Do you think the better plan is just go into somewhere that has more opportunity so you can start building up your database there, your connections, your referrals, your whatever, services that you need, whether it be a title company, or hard money lender, or private money lender, or whatever. You know what I mean? What do you think?

Lauren Hardy:
I think that it’s kind of different for everybody. I think that, for me, there were a lot of years of frustration in my very high-priced, competitive market where I was just banging my head against the wall trying to make this market work. It was like fitting a square peg in a round hole. I was trying to wholesale houses. I was trying to flip homes in a very expensive area where sellers were not motivated. There was an extreme lack of distressed inventory. So, I had a lot of years of frustration trying to make my backyard work.
I more urge everybody to look around them and say, “Hey, are there other successful people making this market work?” If you look around and you can’t really find anybody else successfully, say, wholesaling homes in that area, that’s an indication that the market you’re in is going to be difficult and you’re going to experience a lot of unnecessary stress and anxiety trying to make that market work.

Brent Daniels:
I think it’s really important that you understand what they’re netting in their market because a lot of people can be doing deals and making these big deals in these competitive markets, but if they’re spending 80% of their income on finding those deals, it’s really what are you netting? Having those honest conversations with people as to what they’re actually netting in their business is going to really help you understand if maybe you should consider a different market.
If somebody started brand new, can they start brand new in a virtual market? If they’re one of these four people that you just mentioned and they’ve never done a deal before, can they start virtually?

Lauren Hardy:
Oh, absolutely. I would give you the example. I would much rather you start virtually in an easier, out of state market than start in your local Southern California backyard. All day long I would say you can absolutely be a newbie in a virtual market. There is nothing special about me that this is why I can go virtual, because I’m so experienced or special or smart or whatever. Absolutely not. No. You can start virtually from day one and I do actually say, if your backyard is one of these markets that are very difficult, maybe they’re very densely populated or they’re very rural where real estate doesn’t hold much value type market, I would say you are much better off starting virtually than trying to make your backyard work, as a newbie.

Brent Daniels:
What are the typical… I’m just thinking, for myself, I would have some fears going into a different market, especially if I haven’t started out. What are you seeing? You’re talking to a lot of people around the country, you’re coaching a lot of people around the country. What are you seeing are some of the typical fears that people have going into a virtual business?

Lauren Hardy:
I think the number one fear that I hear from my students… Yeah, I do have, actually, a coaching program now that you guys will learn more about throughout this podcast, so I have actually gotten to hear a lot of student feedback and the number one fear is not knowing what to do if they actually get a deal. They’re too scared to even try to get a deal or try to get the sale because they don’t know what to do once they get it. They don’t know what to do after they get the contract signed, so they won’t even get the contract signed. They won’t even ask for the sale because they don’t know what to do next.
I would say the fear is also kind of like putting the pieces together. They don’t know how to build this virtual machine, so that’s a big fear.
Another fear I would say is that some people just think it seems too complicated or too complex. I want to challenge that because with my program I’ve broken it down into an easy system where you can see that really anybody can do that. I do have success stories with students that went from doing zero deals to now crushing it in only a matter of weeks of being a part of my group and they realize it wasn’t that hard, it’s not that complicated. There’s just a few little extra steps that you need to take when you’re virtual, but you need to do know what those steps are. With my learning curve, mine was more long, drawn out, because I was figuring this out all on my own. I didn’t have a coaching program. There wasn’t a lot of virtual coaching programs out there at all and I didn’t even have one to go off of, so I had to figure it out on my own. With my coaching program, I try to shorten that learning curve by just giving you these pieces.

Brent Daniels:
Yeah, and you had mentioned, actually, you had mentioned, which I think is really, really important, is having three partners in each market that can help you determine. Because the toughest thing when you’re starting out in this business… and I don’t care if you’re been doing it for 16 years like I have… if you go to the new market, it’s a different. You have to learn, is this a deal or this not a deal?

Lauren Hardy:
Absolutely. One of the first bits of advice that I give in my coaching program and my course modules is actually to build a JV relationship and the reason you do this is because it’s going to shorten your learning curve. One of the first mistakes that I’ve made and that a lot of people make when they try to go virtual is that they want to do it all themselves. I’m going to do it all by myself and they don’t want to partner with people. But I am going to challenge you and I force all my students to have more of a collaborative mindset versus competition mindset. That is what I like to do.
I am a firm believer in the rule of threes. Actually, with almost anything, I like to believe in the rule of threes. I think you should hire or have three people that you’re sort of interviewing or working with in this position, until you really settle on one. The reason is, it’s kind of like Goldilocks and the Three Bears. It’s like this is too cool, this is too warm, and this is too hot.

Brent Daniels:
This is just right. Yeah.

Lauren Hardy:
Right. With JV partners, you’re going to find maybe one that is too experienced. They are doing 10 deals a month or more and they don’t have a lot of time for you because they’re too busy with their other deals. It’s great that they’re so experienced. They could probably tell you a lot, but they’re not going to sit on the phone with you and they’re not going to really help you figure out offer pricing. They’re not going to help you comp homes out really, in those initial stages.
Then, you’re going to have the one that’s way too inexperienced. They maybe closed one or two deals and they still don’t quite have that track record. They don’t have the experience so it’s almost like the blind leading the blind situation, which a lot of people fall into that trap when they’re finding JVs because, of course, that is the person who’s going to want to talk to you the most because they want deals anywhere they can get it.
So, the perfect is really that right in the middle person that has a good track record, they’ve done several deals, they’re maybe two to five deals a month, they’ve been in this business at least a year or more, so they’re willing to talk to you. They’re not too busy, but they’re busy enough. That’s my recommendation as one of your first steps in going virtual.

Brent Daniels:
I love it because they have to have that hunger still. They have to want to be doing extra deals. What is really the advantage of them working with you? Do you split the deal with them? I assume that’s what you’re doing, right?

Lauren Hardy:
Absolutely. You give them a percentage of the deal so it’s not costing you money out of pocket. If they can’t sell it, then you don’t have to pay them anything. But yeah, you work a deal with them and they’re a partner. It’s great because a big fear that people have is what if people go around me because I’m not there? What if my buyers go around me and they start talking to the sellers? Well, you have a boots on ground JV right there that’s going to stop that interaction. When you have a JV partner, it gives you this comfort feeling, especially when you’re really close with them. You feel comfortable. You feel almost like you’re there in that virtual market even though you’re not.

Brent Daniels:
Is this person the same thing as an acquisition manager or do you also have acquisition managers? This is just your joint venture partner.

Lauren Hardy:
No, a JV partner only handles dispositions. Anything virtual would be like if this position strategy. Your acquisition strategies should be local to you. Your local acquisition managers, lead managers, I think you should keep as many team members you can local to you and leave only the necessity to the virtual market, which would be a JV partner, because you do need somebody to meet sellers once you get the contract. We do all the acquisitions in-house here in California. We don’t bother a JV partner until we have a contract.

Brent Daniels:
Wow. So, you don’t have them comping the properties for you?

Lauren Hardy:
No, only in the beginning stages, when I’m new to a market. I might sit on a couple calls and run through some homes and say, “Hey, what would you have offered?” Just to make sure I’m on the same page and I’m not offering too high or too low, but I would never bog them down with every seller lead I get because you’re just going to tire them out. You’re going to really waste a lot of their time on seller leads that don’t get them anywhere and they’re not going to want to work with you.
Instead, you really want to come to them when you have a contract or you have a seller that is like, “Accept yes. I’m on the same page with price.” Then, you say, “Hey, I’ve got a seller. They’ve agreed to my price. I think this is a good price. What do you think?”

Brent Daniels:
I love it because you’re essentially adopting their cash buyers.

Lauren Hardy:
Absolutely.

Brent Daniels:
Because they’re sending it out for you. They’re the ones getting somebody that’s going to close it, that you’re going to sign it. Do they handle the title and escrow and the closing attorneys and all that? They select them, they have a relationship with them?

Lauren Hardy:
Yep. Then, right there, then you have a relationship with them. Then you learn who’s the title company that you should be working with.

Brent Daniels:
That is incredible. Listen, just to clarify that, boots on the ground in your virtual markets should be the disposition side. The acquisition side should be in-house wherever you’re doing this from. There’s a few different avatars or people that this really works out perfect for. If you’re thinking about this, if you’re listening to this or watching this on the YouTube channel and you’re interested in finding out more about Lauren, it’s wholesalinginc.com/virtual, virtual. Wholesalinginc.com/virtual. Definitely check that out, guys. You can tell already, in the first 17 minutes of this podcast interview, that Lauren knows what she’s doing and she’s going to give you the absolute best instruction that you can get if you’re considering going virtual.
I really think if you’re in a smaller market and you’re hearing this and you’re worried about running out of deals, you’re worried that you can only do a certain amount of deals, and you can’t get out of your full-time job, and you can only do this part-time, and you’re constantly pushing back your deadline of when you want to quit your job forever, then I think you can shorten that timeline for sure and consider getting into a virtual market.
Just to give you an example, I call for a couple friends that I have around the country, other wholesalers. I make cold calls for them. I’m the cold call guy. When we call in Phoenix, it’s a fist fight. When I call in Huntsville, Alabama, it’s shooting fish in a barrel. When I call in Florida, certain parts of Florida, it’s fish in a barrel. When I try to call in San Diego, it’s a knife fight. It really is very interesting and I think it is definitely worth some investigation into testing out different markets. What I always suggest to anybody in my TTP program is get a list of 1,000 addresses in different markets, your own, in your own backyard and somewhere else, test those out, see how those conversations go. If you’re having stronger conversations in that virtual market, then take action to start building your business in that virtual market because, I’m telling you, it’s going to save a ton of headache, a ton of heartache, and it’s going to really help you to start building your momentum and start building your experience up a lot faster if you’re having more successes early on.
If you’re thinking that you’re in a competitive market, or you’re one of those four personalities that Lauren was talking about, get 1,000 in your backyard, get 1,000 in a different market, test them both out. I highly suggest you call them because you can have your results here in the next day or two as opposed to week or two or months, if you’re going to paper click or direct mail or whatever. Call them up. See how those responses go. See which area you’re able to get the best conversations and the best deals in and then start working your business that way.
If you need help in really taking it to the next level, really creating a foothold in these virtual markets that’s going to give you the income that you’re looking for so that you can do this full-time, not only that, so that you can build a business around it so that it’s a servant to you, then you got to check out Lauren’s course on virtual wholesaling. It’s absolutely phenomenal. She wouldn’t be a Wholesaling Inc coach if she wasn’t the best of the best. Really, really incredible.
Let’s give them some more meat here, Lauren. Let’s give them some more meat now that you’ve booted your kid out of your room again. I know.

Lauren Hardy:
[inaudible 00:18:48].

Brent Daniels:
We were just talking about this. This is really important. You’ve got to make sure that if you’re a single parent or even if you’ve got your spouse there, it’s a crazy time right now. Right now, this is the time where we’re in the whirlwind. We’ve got kids at home. We’ve got dogs. We’re stuck at home. We’re not in our offices. Don’t use this as an excuse to slow down your business. Do not, because I’m telling you, a lot of people are and we are cleaning up. Lauren’s cleaning up. I’m cleaning up. My TTP students are cleaning up right now because we are able to push through this situation that we’re in right now and keep being proactive and we are winning big time.

Lauren Hardy:
Yep. Absolutely. No, now is the time. If I could do a podcast episode with two children home with me right now, you guys can call some sellers up. This is not the time to slow down, this is the time to keep going. Especially the fact that I’m virtual, This really changed nothing for me. I’ve always been virtual. We’ve always been closing deals over the phone. It’s not as hard as you think. You can absolutely have these same conversations you have with sellers over the phone instead of in-person. That’s what we’ve always done. Now is the time to definitely double up your efforts on your seller marketing. Get that lead gen going. Generate leads right now. Follow up double time and get contracts. Get these things signed. You can do it through DocuSign. You don’t have to be in front of a seller to do that.

Brent Daniels:
Let me ask you this, is there any other numbers that you track? Any other metrics? Some people call it KPIs, key performance indicators. Is there any other KPIs or numbers that you’re tracking that is different in a virtual business than it is in a traditional, or is it the same?

Lauren Hardy:
Well, I would probably say it’s the same. I think everybody should be tracking these. That’s one thing I do like. I like that you brought that up in my coaching program. My methodology of coaching really does really follow KPIs. I could look at any student right now and call them out and tell them what they’re doing wrong and I ask them, “How many leads did you get in this week? How many offers did you make this week? How many contracts did you get? And, how many deals did you close?” There’s four. Leads, offers, contracts, deals closed. I can tell you, on average, how many leads, rough leads, it takes me to get a close deal in my market.
If I see that my student, I ask a student, “Well, okay. You haven’t gotten your first deal yet, no? Okay. Well, how many leads do you have?” They tell me, “Well, I’ve got 15 leads.” I say, “Okay. Well, that’s not enough. That’s not enough. You don’t have enough leads. You need to work on your lead gen. What are you doing for your lead gen?” That’s my favorite part about being a coach and what I’ve really incorporated in my program, really in-depth. That’s why my program really is for newbies because I have a real in-depth section where I talk about KPIs and where your numbers need to be so you aren’t going, “Well, gosh. I’ve worked so hard and I’ve done so much work and I still haven’t closed a deal.” Well, I can call you out and say, “Okay. Well, let me ask you, let’s get the numbers. How many leads did you get? Then, how many offers did you get?”
Sometimes the problem in lies in they got 45 leads but they only made five offers. I’m going, “Whoa! What are you doing? What happened to the other 40? What’s going on?”

Brent Daniels:
Yep.

Lauren Hardy:
So, I track KPIs and my course and my coaching program really heavily talks about KPIs. That does not matter whether you’re virtual or you’re in your backyard doing this business. You have to track-

Brent Daniels:
[crosstalk 00:22:34] Have to track it.

Lauren Hardy:
… track your KPIs. [crosstalk 00:22:36].

Brent Daniels:
Well, and I think it’s absolutely critical because it’s very easy, when you’re using a phone dialer, when you’re making calls and you’re reaching out, to track how many people you’ve called, how many contacts you’ve had, how many leads you have, how many contracts, but the beautiful thing is, once you have enough results all of a sudden your business starts getting predictable. Once your business starts getting predictable, that’s when it’s exciting because that’s when you can start making some really smart business decisions. That’s when you start hiring people. That’s when you start cherry picking the best deals you want to keep for yourself or expanding and scaling your business and your marketing. But you do it based on actual facts that you get from tracking your numbers, not based on hoping things are going to workout. I see way too many people making decisions based on hope, which, hope is great. Faith is great. But in this business, facts are better and facts are going to allow you to save a ton of money and make really smart business decisions. Tracking the numbers is absolutely critical.
Tell me about your team, just so we can put a bow on your business and being virtual. About how many deals are you guys doing? What is your team look like? Just break it down.

Lauren Hardy:
Yeah. Last year, we closed 55 virtual deals. This year, I think we’ll probably do about 75 or more. We already got a really good start for quarter one. We got 26 contracts in, which is a pretty good indication that we’re going to do better this year than last year. I’m right now, given where we are in the market, I think we’re operating on a pretty slim team. I don’t have a huge, massive team. I’m a single mom, by the way, working from home. I try to keep my expenses really low. There’s not fluff here where I need some fancy office or anything.

Brent Daniels:
Sure.

Lauren Hardy:
But I have a lead manager. She works from home. All my employees are Southern California based for the most part, except for the necessity ones I need boots on ground. I have a lead manager and then I have a full-time acquisition manager and he also handles some dispositions. I move them around quite a bit. Sometimes we have one guy just in dispositions and somebody in acquisitions. These people are very fluid and I feel like that’s common in our industry, where people wear multiple hats. I don’t have a huge team. I do have an amazing virtual assistant that works for me full-time. She works on some of my lead generation, text messaging campaigns, as well as managing. She’s kind of a lead manager. She makes sure no lead gets left behind. She collects all the leads from the different channels, like if they came from direct mail, or they came from online, or they came from texting and she puts them all in her Podio.
I usually have four to five people, counting myself, on our team and we’re generating that amount of deals. Not all of them are full-time.

Brent Daniels:
Awesome. Hourly? Commission-based?

Lauren Hardy:
Some are commission.

Brent Daniels:
[crosstalk 00:25:45].

Lauren Hardy:
An acquisition manager is usually commission. I do pay a base and then plus commission. A disposition manager is similar, it would usually be commission. Lead manager is an hourly person. My virtual assistant is an hourly person, but everybody gets bonuses.

Brent Daniels:
Love it.

Lauren Hardy:
We’re always bonused on how many deals we’re closing or the net profit because you want to motivate these people.

Brent Daniels:
Awesome. Absolutely incredible. I love it. Guys, Wholesaling Inc coach right here. The best of the best. If you guys are interested in virtual wholesaling, if you’re even thinking about it, you got to sign up for a call. See if it’s the right fit for you. Wholesalinginc.com/virtual. Right?

Lauren Hardy:
Yeah.

Brent Daniels:
Awesome. Lauren, any parting words before we jump off here?

Lauren Hardy:
Yeah. No, one parting word. I forgot to mention. You guys just asked me, or Brent, you just asked me about my team. You didn’t ask me what I do.

Brent Daniels:
What do you do?

Lauren Hardy:
Nothing! Notice that I didn’t really put myself in that team. I work on my business, not in it. That’s the beautiful thing, you guys. That’s how I’m able to stay home with my kids and pick them up from school or be a Wholesaling Inc coach. I’ve outsourced everything. All my job, all these job duties that are time dependent, I have other people doing them so I don’t have to. I’ve really set that up. I have a lot of time freedom and that’s the biggest blessing that this business has given me.

Brent Daniels:
Oh, that’s the number one thing. People talk about financial freedom and that’s fantastic, but really, the freedom of schedule is the most powerful gift that we could get. That’s something that you earn by setting all this up, by being a true professional, by being consistent, by keeping your expenses down, by saving money, by building up your business, building up something that’s going to constantly be giving you income. That’s what gives you the time freedom, the freedom of schedule, and that is the most important thing because that, in the end, is all we got. Absolutely incredible.
Lauren Hardy, thank you for being on the podcast with me, guys. As always, I encourage you to talk to people. Until next time. Love you guys. See you.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling