If you’ve ever wondered what goes on behind HGTV’s wholesaling and flipping business, you’d be in for a treat. The man behind the show Flip or Flop will give you an insight into the whole process. Forrest Blackburn is a talented sales and business development executive with almost 2 decades of experience under his belt. He is also the Sales Director of Tarek Buys Houses.
Over the years, Forrest has also developed and launched companies that have made it to the Fortune 100, 500, and 5000 lists. He is also the Co-founder of ManifyAds, a marketing and advertising firm that has been awarded #1 in internet advertising, website development, mobile app development, and strategic marketing for small, medium, and large-sized businesses.
If you’d like to hear how a massively successful sales and development executive runs his business, this episode is for you!
Flip or Flop – A Behind the Scenes Look at an HGTV Wholesaling-Flipping Business
This is Lauren Hardy. We have an interesting guest. I am excited to have Forrest Blackburn on the show. You are going to find out a little bit about why he is interesting. I’m going to let him do the work. Forrest, please introduce yourself and tell us what you do.
I work for Tarek Buys Houses. I am the Director of Sales and Marketing. We are the company behind the show Flip or Flop on HGTV that lines up all the homes that you see on the show. Some of them are our flips. We have a large wholesaling business that we’ve been growing rapidly. Things have been going well with that. We have a large brand behind us so it does make things somewhat challenging in some areas, and does make things a little bit less feel full of effort in other areas. It’s a lot of fun.
That is super interesting. Tell us a little bit about Tarek Buys Houses as a company.
We’re doing acquisitions and dispositions. We do a lot of aggressive marketing and advertising. We’re running commercials throughout Southern California and Oklahoma through aggressive advertising and marketing spending. We bring sellers to our acquisition specialists. We have a lot of methodologies there, and a lot of systems and processes in place to make that happen. We do vet a number of the properties for the show. We film the show predominantly in Orange County and Los Angeles. Our flips are in those areas and we have to have fifteen per season because there are fifteen episodes.
With Flip or Flop, we have about sixteen million weekly viewers. Tarek launched another show called Flipping 101. He’s working with a lot of novice flippers and helping them get acclimated to flipping and making sure they don’t make costly mistakes and decisions that will squeeze them out of the REI space if they’re not careful. It’s a lot of fun, fast-paced and exciting. I’ve met a lot of great people in the space. I have some great colleagues. We all work together.
I work with a lot of wholesalers and we buy a lot of properties through wholesalers. We want to make sure that the buy box fits perfectly so that the wholesalers aren’t running around wasting their time and our time with listings that don’t fit. We buy a lot of properties through wholesalers. I’m happy to be here and talk to your audience because maybe your audience and I can do some business together.
That’s why I thought it would be a good opportunity to get you on this show. Our audience base is primarily wholesalers all around the country. I know that Tarek Buys Houses is collecting properties for a rental portfolio all over the country, not just in SoCal for the show. I’m going to do my best because there are many questions I want to ask. I’m sure there are many questions that the readers want to ask as well.
I want to break it up for the show and how wholesalers can work with you, and then also for the rest of the nation for the rental portfolio, and how we can work with you. Wholesalers love the multi-unit buyer. It’s not just the onesie-twosie buyer but the buyer that is experienced that’s buying 5 to 10-plus houses a month. We are like winning the lottery when we meet one of you guys. Congratulations, you just won the lottery with Forrest.
Let’s talk about the show first because everybody is probably interested. You guys have to buy fifteen houses to film. That’s not just every opportunity that a wholesaler brings you, “I only need fifteen.” How many houses do you have to work through, make offers on, look at and analyze to get to that number fifteen?
It’s a lot. In the show, we’re flipping houses. We do purchase a lot of the properties from wholesalers so that we can have a good margin. With fifteen episodes, sometimes we have to do more for safety. We have to do a couple of extra episodes in case the network wants to swap one out. For those shows, we’re looking for properties that have a lot of great content that the viewers can see. Something that’s a lipstick flip where we’re going in and doing some minor work. It’s not a lot of meat on the bone there for the show.
Look for things that don’t necessarily need to have the wheel reinvented.
We do vet these properties pretty strenuously. It’s not just us because the production team and the network also vet the properties, and make sure that we have enough content, and make sure of the backdrop. It even comes down to stuff as particular as being able to park the production cars on the street. Oftentimes, there are homes down at the beach in Newport and Huntington where they don’t allow long-term parking or there’s no room for production vehicles. Even though the house is stellar for the show, we can’t utilize it because production can’t work around it.
We do go through a lot of properties. As far as flipping is concerned, we’re picking up probably 20 to 30 flips per month. Having 30 to vet down to 15 over the course of the year is pretty easy for us. We have a lot of content to choose from. There are a lot of factors in what goes on the show. There’s a lot of vetting that takes place. We make sure the show is interesting and it can go onto another season. That’s very important.
In Southern California, the houses that we put on the show are predominantly in Los Angeles and Orange County. We don’t get into San Diego, San Bernardino or Riverside too much. It’s pretty much all in Orange County and Los Angeles for the show. For wholesaling, we do it across the country. We do conventional wholesaling and virtual wholesaling. We have a large interest in Oklahoma. We’re expanding our rental portfolio. We have a little more than 100 properties in Oklahoma that are buy-and-hold between Tulsa County, Owasso, Broken Arrow and also Oklahoma City. It’s everything in between.
We stay away from stuff that’s too rural. We don’t go anywhere near mobile homes, modular homes and things like that. For all of the buy-and-hold that we have, we want to make sure that they are renting for over $1,000. We’re pretty much in that 1% rule. As long as the rent is 1% of the ARV, it’s going to be something that we’re going to pick up and run with. I can go over the buy box a little bit more as we talk about it so that everybody knows what I’m looking for.
I’m in the buying mode. I want to buy, buy, buy. I’m looking to get as many properties as possible. If you have something in Oklahoma, send it my way. I would love to check it out and hopefully, do some business with you in the long term. We’re not just picking up single units and single doors. We’re not necessarily doing apartment buildings and things like that now. Single-family residential or even duplexes, we’re hot and heavy about. I want to grow that buy-and-hold portfolio. Send them on over and I’d love to do business with you. We’re buying in bulk too. We have a couple of deals where there are ten single-family units, one with fourteen. We’re working on a deal where there are 40 homes in about an 80-home town. I don’t know what we’re going to do with that but that’s a huge undertaking that we’re checking out.
That’s pretty crazy. That’s how you and I got to know each other because I’m in both markets in Oklahoma as well. That’s what the benefit is to working with sophisticated buyers like Tarek Buys Houses. You guys buy at a pretty aggressive pricing structure. When you say the 1% rule, what Forrest means is that the rent is 1% of the all-in price. It’s not just the purchased price. Let’s say there are $30,000 repairs. It’s all in.
If all-in to get this property rent ready was $100,000, it should yield $1,000 in rent. If it does, that is an appropriate deal to submit to Forrest. Tarek Buys Houses would be interested in it as long as it’s in the geographic territories of interest. For that area, because I know the buyers pretty well, that’s aggressive. You are good buyers. What is the process of working with you? I imagine with other big players is similar. Let’s say I get a property under contract and the numbers look to beat me at the 1% rule. Do I email you? Do I give you a call?
My email is pretty simple. It’s Forrest@TarekBuysHouses.com. It’s pretty easy to remember. Shoot me over anything that you’ve got. I want to break the ice with you. Send over some properties and I’ll tell you why it doesn’t fit the buy box or why it does. I don’t want to waste your time any further. I don’t want to waste mine either. I want to make sure that we’re on the same page. That way, you see everything that comes across your desk that you can lock up.
If the ARV is $130,000 and it’s going to rent for $1,300, I’m probably going to buy it. The process of that is if you’re going to send over a property, my VP is going to vet it. He’s going to go through it subjectively and make sure that the numbers line up. Maybe there’s some negotiation and maybe there’s not. At that point, we’ll go ahead and get the contracts done.
A gentleman from a podcast that I did on Deal Maker Nation messaged me right after the podcast. We started talking and I gave him the buy box. He sent over a property. It was about 3:30 in the afternoon and by 6:00 PM, the deal was signed and done. DocuSign was all locked up and everything was done. If it fits the buy box, I’m a cinder block on a gas pedal. I want to move fast and get it over with so that we can move on to the next one.
That’s what I love about sophisticated buyers. It’s like, “It meets the criteria. Where is the assignment agreement? Here’s our EMD. Let’s go.” I’m assuming all cash. You don’t have to worry about not getting your loan.
In the wholesaling arena and REI, we all say, “We’re going to make you a cash offer on your home.” In all honesty, I can tell you that if you bring me a wholesale deal and it meets the buy box, we’re pulling out our wallet and we’re getting it done. We’re not calling lenders. We’re not working with hard money. When we do a buy-and-hold scenario, we’re using cash. We can close quickly on your time schedule and whatever you need to do.
Honestly, our goal is to lock the property up and get our construction crews in there to do whatever work is necessary. Sometimes we’ll work with full bets on the buy-and-hold. We try to shy away from that. We look for things that don’t necessarily need to have the wheel reinvented so to speak. We’ll look at anything. As long as the numbers line up and we see value long-term, then we’re going to buy it.
Are there any other territories other than Oklahoma?
We do a lot in North Carolina. I’ll take a step back. When I came in, everything was predominantly flipping. There was a little bit of wholesaling going on. We had about $40,000 that we didn’t wholesale. We only had made a small team. Before I got here, most of the team had been laid off. They were shaking things out like an Etch-a-Sketch if you will.
I came in to corral this. My background is growing companies, growing sales teams, and scaling up.
In my last company, I grew it to 1,500 sales reps. That’s the approach that we have here. I can’t grow something unless the foundation is solid. It can’t be weak in the knees. You have to have solid systems and processes, and you have to have a good cash churn.
Most of you can attest to this. If you’re in the wholesaling arena and you came from flipping, you know that with flipping, you have a long cash cycle. You lock up the property. You’ve got to take two months to do the rehab. You’re going to market the property, get it on the market, somebody buys it, and you’ve got a 30-day escrow. You’re looking at a 4 to 6 months window before you realize the profit.
You can’t grow something unless the foundation is solid.
In wholesaling, that can be a 14 or 30-day churn. It can be whatever needs to happen for the scenario. Also, you have a much faster cash churn. For me, it means I don’t have to wait to realize that profit coming back to be able to roll it over into marketing and advertising. It makes it much easier for me to be more aggressive in advertising and marketing because I don’t have that insecurity of issues that could arise during the course of a flip.
I wanted to double down on wholesaling and grow that aspect of it. We went from $40,000 to $200,000 to $500,000 to $1 million in a few months. I ran it quick. The elections started diminishing some of our efforts and held us underwater a little bit there with some of our direct mail, Facebook campaigns, and things like that. We have some great relationships with some great wholesalers, and I am hoping to make more.
That’s what weathers the storm for all of us. If we can all work together and share properties with one another, that’s a lot less work for us, for you and me. It’s easier to find properties that fit exactly what we want. We know that when you send them over to us, we’re going to buy them. The wholesalers have helped us weather the storm through the election. We’re going into the holidays and it’s kept our numbers consistent without having to rely heavily on marketing and advertising as our sole source. Wholesalers rock so send me over your properties. Let’s do some deals.
Let’s get real with things. When we’re talking about working together, let’s say I’m the wholesaler and you’re the sophisticated multi-unit landlord buyer.
I’m going to have to put on a tie or something.
You guys are pretty sophisticated over there. When it comes to working with each other, what are some things that wholesalers do that are annoying?
If I told you I’d buy anything blue and you sent me a bunch of things that were orange, red, yellow, and started off the email with, “You’re going to love these.” It’s either you’re not listening or you don’t care. That’s the biggest frustration that I have because I’m transparent about our buy box. I don’t want to waste your time. More importantly, I don’t want to waste mine.
If we’re going to work together and I say, “Here’s what I want. I want a blue house.” I’m being hypothetical there. You say, “Okay, great. Here’s a red one.” There’s a disconnect. You’re going to waste your time even with your breath of air saying, “Here’s a red one,” and typing out that email. What it comes down to is let’s work together. You tell me what you can find.
If you tell me, “You’re crazy. There’s no way I’m going to come up with something that matches your numbers.” I do it 30 times a month but that’s fine. We’re not a good fit and I’m glad we figured that out now and good luck to you. I’m transparent about the buy box. If you find a property that matches that criteria, I’m equally as transparent to tell you that there’s a 99.9% chance I’m going to pick it up from you and I’m going to pick it up on the same day.
In Oklahoma, we do have boots on the ground. If there’s a property, we’ll go ahead and we’ll vet it as best as possible on the same day. We lock up the contract the same day. I’ll have my guys walk it probably the next morning and make sure that everything is on track and everything is great. If it is, then we move forward as quickly as possible. If there are any negotiations that have to take place, as a wholesaler, you’re in business and we’re in business. There’s nothing personal about it. We look at it objectively. There’s a lot of factors that go into it but it happens fast, and we’ll buy that property from you.
As long as I’m telling you what we will buy and you are giving me exactly what I said we will buy, we can do this multiple times a day. That’s my goal. I want long-term relationships with wholesalers. I say this a lot. For the guys out there, if we find a barber and it’s great, we’re not immediately on our phones trying to find another one. I don’t want to keep looking for wholesalers. I want to find long-term wholesaling partners that you know what I’ll buy. I know that you can give it to me. We talk openly all the time and we’re constantly churning properties together. You’re making money and I’m making money so that I can buy them from you. It’s a perfect partnership that way.
That’s why I want to talk about this because this is the thing. There’s no surefire way to get blocked by Forrest’s email or thrown in the spam box when you guys are wasting Forrest’s time or these other guys’ time. We have a lot of wholesalers who are newer and they don’t know how to work with the more sophisticated buyer. It’s something that I see because I get a lot of emails from people I don’t know.
I love the way you gave the analogy of the blue house and you send me an orange house. That is a great one. I wasn’t even going to think to use that analogy but that’s a good one. What bothers me the most is when they’re like, “I’ve got a lead on the house in Norman.” I’m like, “A lead? I get 50 leads a week.” I don’t care about a lead. Unless you have a purchase contract signed by you and the seller on that house in Norman, do not email Forrest. How many times do you get that email?
There is a fair amount that goes on. Sometimes I’ll get somebody that emails me and says, “What do you think about this house?” I will have already received that house from the person that has it under contract. That’s infuriating. It’s not frustrating. It’s a little bit more than that. I feel like you’re hijacking somebody else’s listing. In all actuality, you can’t speak on it. You can’t negotiate on it and you haven’t done the work.
You’re bringing up daisy chaining where it’s not your contract but you’re still marketing it. What I’m bringing up is that we get newer wholesalers that are excited. They got a motivated seller on the phone and a seller called them. They’re like, “I have a lead.” They’ll email me like, “Lauren, I have a lead on a home.” I’m like, “Do you know how many leads it takes to get a deal? It takes probably at least 25 of those.” Unless you have this deal under contract, don’t bother them because they will eventually spam you. They will ignore your emails and you will have no relationship with these guys. If you want to swim with the big boys and girls, you need to learn how to communicate with them.
Don’t waste their time on leads. You need to have the property under contract. What you were saying with the blue house or orange house, a lot of it is that they might be newer and they don’t understand pricing very well. It’s more of an accidental thing. They’re like, “The ARV on this one is $160,000.” They’re off on that. They have it under contract for $150,000. It’s like, “You don’t understand investing numbers.” When you get that, that’s when you’re like, “You need to send them back to me. I’ve got a coaching program. I will coach them up. Send them to VirtualInvestingMastery.com.” Reply back with that. A lot of it is ignorance. They just don’t know.
It’s because they’re new. A lot of my acquisition specialists, the team and everything are constantly cultivating relationships with wholesalers. In my position, I talk with a lot of the more successful wholesalers, but I also talk with a lot of novice wholesalers. I’m happy to work with them if they’re onto something. If they found a goldmine but they don’t know how to pick at it or they don’t know how to dig the hole, I am happy to help them dig that hole and figure out how to be the most efficient hole digger possible so that they can give me that gold. It’s less work for me, and then they can bring those deals to me.
If you’re an experienced wholesaler, you will a transparent buyer. We equate it to showing up at restaurant and the waiter comes up and says, “What can I get you tonight?”
If you’re insecure about your numbers, you’re insecure about what you’re doing as far as wholesaling is concerned, and that makes you intimidated to reach out, please don’t. Please contact me and say, “Here’s a property that I found. I don’t know if it’s good, bad or indifferent. Here’s what I thought the numbers were. Let me know if I’m right or wrong. If I’m wrong, please tell me why.” I’m happy to walk you through that.
If you have the initiative and the hard work ethic to go out and find these deals for yourself, lock them up and you’re hungry to make money on these deals, I am hungry to buy them and fund your whole operation in doing so. We can work together. If you’re an experienced wholesaler, I’m not trying to dilute the waters by helping novice wholesalers. If you’re an experienced wholesaler, you can appreciate a buyer that’s transparent in their buy box because then there’s a lot less guesswork.
I equate it to showing up to a restaurant and the waiter comes up and says, “What can I get you tonight?” You say, “I don’t know. Feed me.” He’s going to run back to the kitchen and he’s going to make a steak and potatoes and all kinds of great stuff and bring it out to you. You say, “I don’t eat meat.” He’s back to the kitchen. Now he’s got to re-cook something else and he’s going to make this great lobster dish and bring it out. You’re going to say, “I’m allergic to shellfish.”
It’s this back and forth thing that keeps happening. All we’re doing is wasting each other’s time and that’s going to grow some frustration, which will drive a wedge in the potential relationship that we could have. It’s much easier if I say, “I want a steak and I want carrots on the side. That’s it.” Your job is to go and bring that out exactly like that. If you come across a plate that’s got steak and that side dish, you’re going to bring it right to me because you know that’s what I’m going to eat. It makes things a lot more efficient. It doesn’t waste as much time.
Every wholesaler or every seller is looking for a buyer that can be their sole buyer. I don’t like to talk to a million people a day. It’d be great if I could only talk to one and they fund the entire operation. I’d love to be that for you. Get with me and we can go over the buy box criteria, and then it’ll set your parameters. Maybe you want to chew the fat and only focus on stuff that fits our buy box because you know we’ll buy it. You don’t have to shop it around and do any marketing and that kind of thing. That’s great. I’d love to work with you and I’d love to have you send over properties that fit perfectly, knowing that we’re probably going to buy 9 out of 10 of them.
There’s a quick tip on how you can do that because I love to be able to provide practical advice. That was a theoretical thing throughout there but there’s a process behind that, so I’ll help you with that. It’s easy. There are list providers out there where you can go on a map and put Forrest’s exact cities where he wants to be.
If he says, “I only buy houses that are 1,000 square feet to 1,500 square feet. They have to be between the ages of 1940 and 1995.” You can put those parameters in there, and these list providers will give you every one of those properties on the map that fits that criteria. They’ll even specify whether it’s a vacant home or an absentee-owned home.
I get into a lot of that on a lot of the podcasts that I talk about. I talk a lot about direct-to-seller marketing. That’s all direct-to-seller marketing. If you guys need a resource for that, BatchLeads.io has an awesome list providing service. If you guys use my code, VIRTUAL, it’ll get you 50% off. It’s exactly what Forrest is talking about. It’s a great idea to have 100,000 people on your buyer’s list. To me, the more buyers, the better. If you want to work with a handful of the big boys and big girls, you can source those leads and tailor-fit your marketing lists to that type of criteria. It’s very easy with these list providers.
Batch Leads is a great source, for sure. Use that code. Fifty percent off is amazing.
It’s 50% off the first month. I do have an awesome discount for skip tracing. If you guys are into cold calling, use my code, VIRTUAL. It gets you a discount on all the things. On a more personal note or a company-wide personal note, what is the hardest thing about buying all these properties for the show?
Going back to my earlier statement when I was talking about content for the show. Everything has got to have a lot of content. Foundational issues, leaks, and things like that are things that people want to watch. Those are things that people are going through in their own lives in their own homes. They have a leak.
We’re going into the winter months. In Southern California, we’ll have some rain. We’re lucky here. Our weather here is a pretty thin line in between each season. Those leaky roofs are going to be coming up. Those are something that people are going to want to watch, and learn how to overcome that, and what goes into that.
There are many obstacles to everything. In wholesaling, it’s finding not just the right wholesalers, which is who we’re all talking about, but we talk with a lot of sellers. Like any wholesaler, we are always trying to overcome their situations and try to help them out and provide a service for them. One of the biggest things that I enjoy about being in this space is not just building rapport and building that empathy for someone’s situation, but solving the problems that they’re going through.
We’ve been gracious to get a lot of testimonials and reviews from a lot of our sellers. They cry. They’re emotional about the fact that we’re able to go in and solve a problem for them whether they’re in a pre-foreclosure. We even contacted people that have something as simple as water shutoff notices and things like that. A lot of these people were upside down. Because they haven’t raised their hand and said, “Tarek, contact me.” We do a fair amount of cold calling and outbound that way to reach those sellers.
Don’t be afraid to do that. Don’t just be driving for dollars and knocking on doors. Don’t be afraid to set up a system. Systems and processes are what’s going to make you move even faster and be able to find more houses for buyers like us. Being able to utilize lead sources, text messaging platforms, outreach, and lean on tech and software to help you move the needle forward a little bit more, you’re going to see leaps and bounds differences in your bottom line. You’re going to see more properties. The more inventory you have, the more you have to sell.
It’s overcoming a lot of objections and overcoming these problems with these sellers that changed their lives. You’re never going to be able to talk somebody out of their home. You’re never going to be able to talk somebody into selling you their house if they’re not interested in it, or if they don’t have pain and motivation.
A lot of times, people don’t even know where to start. They don’t even know where to begin to get themselves out of it. We talk to a lot of senior owners and they’re saying things like, “I only get to see my grandkids in Boulder, Colorado every Christmas. It’s because I fly out there. If I buy a lot of presents, I ship them out there early. I’m only there for a few days. I feel like I’m a burden in their home. I don’t know where to start. I don’t know where to begin to get out to Boulder.”
We’ll walk them through it. We’ll say, “We found some properties for you in Boulder. I’m happy to send you over the listings and you can follow up on them yourself. They fit to what you’ve been saying.” They say, “That’s amazing. I didn’t even know where to begin.” On a small scale, those are some of the problem-solving that we do. It’s very rewarding on that side of things.
When we do sell the homes, it’s financially rewarding. The financial reward doesn’t necessarily make everyone have wonderful dreams at night. We all have to have that warm and fuzzy feeling that what we’re doing is not just putting money in our pocket, but it’s bettering the community and the neighborhoods, and it’s helping people out when they need it. For me, that has been rewarding.
A hurdle is always solving those problems and looking at them from a million different perspectives and from a 10,000-view perspective to look at things that they haven’t seen, be able to address those issues and solve the problem. That’s why we’re able to pick up so many properties. We’re on one deal a day rule. We do one contract per day. If we don’t do one contract in a day, somebody is in trouble. It’s usually me, which is very aggressive. That’s 365 deals a year.
We all have to have that warm and fuzzy feeling that what we’re doing is not just putting money in our pocket but bettering the community, the neighborhoods, and it’s helping people out when they need it.
I’m trying to push the envelope forward a little faster, growing the acquisitions team, growing our dispositions team, and relying on a lot of software to disposition those deals out. We use a software called InvestorLift. It does a lot of the dispositions for us on an automated basis. We’re relying on tech to move everything forward. That enables us to run quickly and solve a lot of problems for a lot of people. The hurdle is always in the objections. It’s finding the right buyers. As long as my buy box fits what you have, I’m the right buyer for you. We’ll explore all of that and I hope that I meet a lot of new friends after this show.
You should because this is the number one wholesaling show. This is all we talk about. We are super niched on this show. It’s all wholesaling. That makes us different from a lot of the investing shows. You definitely will make a lot of new friends. How can people best get a hold of you? Also, are you on any of the social networks?
You can find me on Facebook. My email is Forrest@TarekBuysHouses.com. I’m readily available. If you send me an email and you want to chat with me on Facebook, if we have connected before, I’m always there to respond and reply. I am grotesquely busy all day, every day and on weekends. Money doesn’t sleep so I’m always available. If there’s ever a question or a property that you want us to vet, please send it over. I’m going to take a look at it. I’m going to respond. I’m going to get back to you. As soon as I have that vetted, if I’m available, it’ll get done right away. If not, it’ll be within 24 hours. If it looks great, we’re going to move forward fast. For Facebook, it’s @ForrestBlackburn. I’d love to hear from you. Start sending over some properties. Hopefully, we can lock them up the same day.
If you do have properties under contract and you want to get their eyes on it, you want to find a reliable buyer, Forrest of Tarek Buys Houses is your guy. Forrest, it’s been awesome having you. I coach all things virtual. That’s how Forrest and I got connected. We both have virtual businesses. I had Tarek. He had contacted me at one point because I was virtual and we put together that we’re in a similar market. That’s a little bit about how we got connected. Being virtual enabled me to be able to expand my market territory so I can go where the deals are.
Forrest, in Southern California, it is pretty tough. You have to be a pretty deep-pocketed investor and pretty sophisticated to be able to buy these homes in OC and LA. You are competing against HGTV buying these homes in Southern California. I chose to go to out-of-state markets. I felt the margins there is where I wanted to be at. They were a little better and it was easier. It’s easier to do deals out of state than it was in the local market. Some people have different opinions on that. I’ve been in both. Southern California sellers are a little harder to deal with.
From an advertising and marketing standpoint, the acquisition costs in Southern California for us are about triple what they are in Oklahoma.
I got in this IG war. I had said this exact thing on a show and somebody who does a few deals in Southern California argued this point with me. I was like, “I’ll argue until I’m blue in the face but you don’t know how easy it is to do deals out of state because you just know this area. You don’t have a leg to stand on in that opinion.” You do, Forrest. You do the market. You’re out-of-state and you’re in here. You know. If you are in an area and you want to be able to do deals in other areas, check out my coaching program. You can go to VirtualInvestingMastery.com and you can find out more about it there. Apply if you’re interested. This was a lot of fun. I’m excited. This was the first time that we’ve had an HGTV episode on our show. It’s cool. I’m super honored that I got to do this.
Thanks for having me on the show. I appreciate it. Lauren, you’re always fun to talk to. Anytime, send me your deals, email me, friend request me on Facebook, chat me up there, chat me up on email. I’m always available. Let’s do some deals. Let’s do some business together. If you’ve got a block of properties, send them over. I would love to try and pick them up. We’re looking at almost picking up an entire town out in the middle of nowhere. We’ll see what happens with that. I’m buying. If you’ve got stuff to sell, let’s talk.
Thank you so much, everybody. Until next time.
- Tarek Buys Houses
- @ForrestBlackburn – Facebook
About Lauren Hardy
Lauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and softwarecompanies. She is also a Wholesaling Inc coach and co-hostof the Wholesaling Inc Podcast.Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community.If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.