Posted on: January 18, 2021
WI 604 | Wholesale Questions

 

Ever wondered what a coaching session with Virtual Investing Mastery’s Lauren Hardy looks like? Wonder no more! In this episode, you get to listen in as Lauren coaches one of her students, Kejuan Frazier. Kejuan is a thriving wholesaler from Atlanta, Georgia.

In today’s show, Kejuan will ask Lauren burning questions that will surely help his career growth and bring him one step closer to financial freedom. You probably are asking yourself the same questions so you’ll be getting the answers to those pressing questions as well.

If you are looking for guidance from one of the industry’s best on how to build your wholesaling business from the ground up, this is one episode you just can’t miss!

LIVE Coaching Call – How to Build a Wholesaling Business . . . From the Ground Up

Episode Transcription

I am doing an interesting episode, a different content piece, something a little different than what we normally do. I’ve got one of my coaching students. His name is Kejuan Frazier. We are going to do a little deep dive coaching session. You are going to be reading up on this back and forth Q&A. I’m sure Kejuan is going to ask a bunch of questions that you have wondered about before. This will give you a chance to see what a typical coaching session looks like with the coaches of Wholesaling Inc. because we do have the best coaches in the world for all things wholesaling. Without further ado, Kejuan, welcome to the show.

Thank you for having me. It’s exciting to finally be on one of your shows.

We’re excited to have you. It would be cool to take you from where you are. You’re still fairly green, getting the hang of things. When you do get to where you’ve closed some deals, I’ll interview you again. Let’s tackle some things that you’re going through and the questions you have. You went from zero green to taking action. You’re part of my coaching program, so you’ve watched the modules, and you’re doing the things I’m telling you to do, but questions come up. First things first, tell us a little bit about yourself. Where are you from? What is your territory? What do you do? Do you work? Tell me everything.

I’m from the Atlanta, Georgia area. My territory, though, is in Baltimore, Maryland. That’s where I’ve been attacking full-fledged, more heart. I am a data analyst for a company called Alight Solutions. I do that full-time. I also coach high school football six months out of the year. From June to December, I’m swamped with a lot of stuff between work and football. I’m still trying to be a role model to my nephew. It’s a lot. I’m taking everything day by day. It’s been a roller coaster, but it’s been exciting the whole way. I can definitely say that.

I joined your program a little bit after the football season ended. I have been learning different paths or ways to go about the wholesaling industry and different things that may come up. It’s been a blessing to have you along my side because there have been things come up that you’ve been able to jump on your coaching calls where you have to answer questions. It’s been a blessing to have you and join this program to help take my wholesaling business to another level.

You live in Georgia. Why are you not working in the Georgia market? You chose Baltimore, Maryland. What made you make that choice to go virtual?

I started off in the Georgia area. It’s probably not like the San Diego market or that California market, but it is saturated. There’s a lot of competition in the market, which is cool. Competition is always my thing, but I didn’t feel like I was getting the most out of my money and marketing dollars. If I’m spending up to close to $500 in marketing, text messages, skip tracing, and I’m not getting a lot of hits, it’s like, “Did I choose the right marketing?”

In your course, you let us know how to pick the right market, so I revamped it. I went back and looked at those things that you recommended and steamed if there was another market that fit or that was suitable to what I want to do. That’s what led me to the Baltimore, Maryland market. I’ve had about 5 or 6 leads within 2 to 3 weeks. It gave me a lot more confidence to go ahead and focus mainly on that Baltimore market and pick back up in the Georgia market once I get comfortable.

Why work in an area that’s super saturated with other wholesalers doing the same marketing methods you’re doing? They’re driving up your costs for marketing when you don’t have to be stuck in that area. You don’t have to be. We are in such a virtual world, especially with COVID. You have that excuse to tell the seller, “I can’t meet you.” You already have that, so that’s already eliminated. That’s a big thing people will freak out about going virtual like, “What if the seller wants to meet you?” Now, you’ve got that excuse.

A lot of people are in that Georgia market. It’s a great market, but there is a lot of competition utilizing the same direct-to-seller marketing techniques that we do, so it’s going to drive up your marketing budget. You’re making maybe the same amount of money but spending more on expenses. I agree with your philosophy of picking a less competitive market. You’re busy. You’ve got a full-time job and another one half of the year.

WI 604 | Wholesale Questions

Wholesale Questions: Every time a seller gives you an objection, you should write it down and come up with three answers that you could have said to overcome the objection. Memorize it in your head.

 

I don’t have any kids, but I coach. I promise you, the season is over, and these kids have been texting my phone every day wanting to talk. It feels like I’ve got about 30 different kids in my group, so I’m busy. I try to put multiple hats throughout the day.

What is your goal with getting into real estate?

The number one main goal that I have is financial freedom. That’s what a lot of people get into this field for, but it’s also creating that generational wealth, something that I can pass down to my kids. I may get in a position where my kids don’t want to go to college, but they have to figure out a way to make some money. This will be something that I can pass down to them where they’re not putting themselves in a lot of debt, and they’re able to make money. One of the biggest things that I have is being able to buy an apartment community. That’s my number one goal on my ten-year plan, to put myself in a position to buy an apartment complex and serve individuals like people who have been able to serve me most of my life.

Wholesaling is the gateway drug to real estate investing. We weren’t all born into families that have huge real estate empires. I live in Southern California and believe me, I know a lot of people that have been, but I wasn’t. It sounds like you weren’t either. It does seem that that apartment goal is far away, but you’ve got to take some baby steps to get there and every year, you’ll see. First, it’s like, “I start out with wholesaling, and I did three deals.” The next year it’s like, “We did ten deals.” The next year it’s like, “I did 40 deals,” then, “I bought 3 single-family rental homes, in addition to the 40.”

It’s all a stepping stone from each other from year to year, and many people get discouraged. They want to be right there to the apartment building in year one. Unless you inherited an apartment building, that’s very difficult. It’s okay to start with the wholesaling. Don’t put these crazy goals like, “I want to do 50 wholesale deals my first year.” I don’t know a lot of people that did that. If they did, they got really lucky honestly.

Another thing I’m looking into, and I don’t know if you are in this area, but I want to get a home on a college campus or around a college campus, and be able to rent it out to the college kids because there’s good money there. I know when I was in school at Georgia Southern, we were charged by the room. We shared the living room and the kitchen. That’s probably one of the biggest things that I want. That’s in my five-year plan. I’ve got all kinds of plans of what I want to do with it.

You’re on the right track. You are getting started and taking action. Let’s talk about getting started, taking action. How do you feel? What are some questions you have?

One of the biggest things that come about is marketing. Those are some of the first things that come. I created this site through the site that you gave us, but my biggest thing with the website would be, what ways do you market your website? Where are you putting your website information for people to go and put their information in if they’re a motivated seller looking to sell? Do you put it on Facebook or Craigslist?

Here’s my opinion on having a website. In this world, a website is like a business card. If you do not have a website, who are you? You are some scammer to a seller’s eyes. I only use a website solely for credibility. That’s it. A seller can google my name, I come up and I have a website. It’s the same way back in the ‘90s when people used to flash their business cards, and everybody would give their business cards in the ‘90s or early 2000s. I use a website for credibility.

There are people that try to get into Google AdWords or Facebook Ads, and it redirects to your website. I have spent buckets of money on Facebook Ads and Google AdWords. Maybe I just haven’t had the proper people managing them. I don’t know. I’ve tried different people. It is the most expensive lead source. There are better ways to get cheaper leads. I’m not a fan and I would never tell anybody that’s newer to try Facebook Ads or any kind of online marketing because it is very expensive. Maybe if you have that background in Google AdWords management, that’s a different story, but it’s very expensive.

Wholesaling is the gateway drug to real estate investing.

Think of the website as a credibility. It doesn’t hurt to put some testimonials if you can start getting testimonials from your sellers. You don’t have to be crazy about getting 100 testimonials. 2 or 3 up there would be nice. I made it as an intentional practice this one year. For every closing, we offered the seller like, “Here’s a gift card if you do a quick video for me.” One year, I was collecting some testimonials. I put 2 or 3 on my site, and that was about all I needed.

I wouldn’t stress too hard. It really is just for credibility. I recommend Investor Carrot because it’s the quickest, easiest way to throw a website, and their plans are pretty reasonable. That’s what I personally do, but if you want to get a simple landing page type website to get started, if that’s more economic for you, then go ahead and do that.

You did knock out two birds with one stone because my next question was going to be about those testimonials. That helps legitify your business. When you got those testimonials, people see that you’ve done business with other people in similar situations. It helps give them that comfortability. That’s what we’re going for.

In my experience, testimonials are awesome, but they’re also a difficult bottleneck to do as an operator because you’re talking to sellers. You’re doing your lead generation. You’re comping homes and then, “By the way, don’t forget to get the testimonial.” It’s a lot. That’s always been something that I’ve struggled with as an intentional practice of getting testimonials. It was something that I had for one year be intentional about it and then from on, I have not been as intentional about doing it. As long as that activity of getting your testimonials isn’t taking you away from the primary way of you getting business, they don’t hurt.

Something else that has been bothering me is the address. I know you said about getting a PO Box in the course, but what are your thoughts on a virtual address? Online, they have these buildings where you can have a virtual address for your business. It’s more along the lines for the business credit to help that.

It’s all credibility. That’s all that is, honestly. Sellers like to know that you’re a local company. That is more important when doing direct mail because you have to have that return address on the postcard or letter you’re sending. Usually, if a seller sees that it’s not from something local, they might be more inclined to throw it away and not talk to you. That’s why I always made it a practice to have a local address, but it used to be easier to have it come up on the Google business page with Google My Business. Google has figured out that people do that, so it’s not as easy.

It doesn’t hurt, but this is something the same with the testimonials. I don’t want this to take the place of you taking action. I don’t want anybody to go, “I need to make sure that I have my local address before I do any lead generation or make any offers because it’s important that I have that address.” No, it’s not that important. That’s okay if you don’t get to it for three months. I want you to start taking action and making offers first.

Another question that I have that can come up in one of the properties that I’m looking to get under contract in Maryland is squatters. We’re in a situation where the mom purchased the home off of somebody giving her advice, “You should get these homes. They’re going to build up the Baltimore area. In the future, you can sit on them and make money.” She did, but the way her daughter explained it, she’s not a good landlord. She doesn’t check on the homes. She bought the homes and never went to check on them. Got the keys and was just going to sit on them like she was told.

It has been brought to their attention that there could be tenants staying in these homes that they didn’t know anything about. This is from the person who they got the homes from. He still had tenants living up in the empty house. They don’t have any idea of the lease agreements, even if these tenants are paying or anything. They can’t get ahold of the guy who sold them the home to figure out what’s the lease agreement. How would you go about that?

What I told her off of first knowledge is she’s going to have to go down to the courts to start the eviction process. If these are your homes and you don’t have any knowledge of people supposed to stay in them, no lease agreement or anything along those lines, then they’re illegally staying at this house so you can get them out. There’s a process that you can go through to get them out. Is that what you would have said because I heard a new term on Clubhouse called cash for keys?

WI 604 | Wholesale Questions

Wholesale Questions: Every state has different eviction laws and different notice serving requirements to get somebody out of the property. If you don’t know what to do, talk to your local attorney and they’ll tell you how it goes.

 

In California, I started out as a house flipper and I had to get rid of lots of people. Every state has different eviction laws and different notice serving requirements to get somebody out of the property. There’s a cheap way to do this, and there’s a little bit more of an expensive way. If it were me because time is money for me, I would find the local real estate eviction attorney doing all the evictions in town. It’s very simple. Usually, you could just google “Eviction Attorney Baltimore.” There are attorneys that are a one-stop shop, and all they do are evictions. That’s it. That’s their thing and they charge the most reasonable rates because of their volume. What you don’t want to do is land on a civil litigator attorney. That’s then like, “I’ll do that eviction for $5,000.”

In California, I had an eviction attorney that would charge me $890 per eviction. That was it. What was great about that attorney is they would give me the, “This is what you need to do first and then if that doesn’t work, come to me.” This is the way the California laws worked. I’m a little rusty on them because I haven’t done them in a while. I’ve been virtual for a bit, so I haven’t had to do it, but there’s a notice period. You give a notice. You have to put it on the door, take a picture with the date stamp that you put on the door or you serve it to them, and it’s like, “It’s a 30-day notice to vacate.”

On top of that notice, I would attach a Cash for Keys letter, and it would say, “I want to let you know that I’m the new owner of the home and I need you to move.” It would be a lot nicer than that, but I would say it in a nice way like, “If you get out any earlier than this date, I’m going to give you a certain amount of money per day early that you leave.” I give them an incentive to move out earlier. In California, it might have been 60 days. That’s how rusty it’s been. I haven’t done this in years, but there is a certain day amount and I would say, “For every day early, I’ll give you $35.” That motivated 50% of them. They’re like, “I’m getting out next week. I’m going to make $100 or something.”

I always would say, “I’ll give you your full security deposit back because I’m going to remodel the home anyway.” That’s what I would do. In fact, in the group forum of my coaching group, I don’t think I’ve included it. I might have. Check out the file section and see if I have my cash for keys letter and agreement. If I don’t, I will include it. Do a little tag and remind me. I will post it there because I’m an open book. I give everybody in my program all of the things that I use and all the things that I do. I can totally provide that. That is something you can do, and then that way, you avoid the eviction process already.

Sometimes you get the person that the notice time runs out and they don’t move. That’s when I would call the 123-eviction attorney, the go-to guy. He charged me $800 and something. He would file all the paperwork, and then sometimes they would move before the eviction happens so it wouldn’t hit their credit. Sometimes it would be a sheriff lockout situation.

We don’t change the keys. We just change the lock for the door.

The sheriff has to come and serve them a document. The sheriff can then say, “You have to walk out of the property.” We would lock the doors behind and change the doors that day. In California, we have abandoned property laws. I would then consult an abandoned property expert. This is a whole thing that a lot of people forget about.

A lot of the guys take a dumpster and start throwing their stuff away. That’s not legal. You legally cannot do that, at least not in California. We would then go through the abandoned property procedure, which ends up as auctioning their stuff off. It’s the most ridiculous thing in California, but you end up auctioning. If they want their stuff back, they have to buy their stuff back from you. It’s a whole process.

You want to avoid all these things, so you do a Cash for Keys. You’re like, “We could do this the easy way or the hard way. Which way do you want to go?” When you’re talking with these squatters, if you can talk to them, you’re like, “Listen to how this works. It’s going to be on your record. You’re going to have a judgment on your record. You’re going to have something on your record that says you’ve been evicted. Good luck getting into any apartment ever again. Not only that, I’m going to lock the doors and then you’re going to have to buy your stuff back from me. You don’t want to do that, right?”

Once the locks are changed, everything inside is yours.

If you don’t have a website and testimonials, you’re a scammer in the eyes of the consumer.

You have to go through procedures, but at least that’s in California. That’s what I mean that every state is different. You’ve got to talk to the local attorney that does the evictions in that area, and they’ll tell you how it goes. When you’re working a deal like that, there are two different ways to go about it. You can either say, “I’m going to help you get this place vacant, and then we’ll buy it or we’ll buy it, but we need the price to reflect that we’re going to deal with this headache.” If you intend to do option B, you’re going to buy the property, you need to know how to deal with it, and that’s where I say call that eviction attorney.

It’s not that hard. People freak out about this. I’ve taken evictions all the way, and it’s not that big of a deal. I had to do nothing. The attorney does everything. I just sit back like, “Let me know when I need to get a lockbox dude out there.” With the abandoned property thing, I had another guy that I would hire. He was very reasonable. I just had to add about three months to the holding time. That was it.

I would factor in the price of the home. I’d say, “The holding time is going to cost me $5,000 a month, so I need a $15,000 discount to deal with your tenant problem.” That’s it. You can either get it on the price or say, “I’m going to help you get this thing vacant. Let’s get it under contract at this price, pending it’s vacant when we finally close or this price that’s maybe $20,000 lower or something but I’ll buy it and assume there are squatters.”

I believe the route I was going to go for is to adjust the contract. The first thing we adjusted was the amount of days that the contract would be. In case there are squatters, then we have to do that. I extended it from the normal 30 days to 45 days, and she was okay with it.

Instead of doing that, you put a contingency, “Property must be at closing.” It doesn’t matter how many days. It could be 300 days.

As long as when we close, the property is vacant.

Property is vacant and possession needs to be able to be exchanged.

There’s one thing that I slacked on because I had this, “I’m new, so maybe I don’t need to go that granular yet with my KPIs.” When I first started getting leads, I didn’t have a CIM connected, so that way I could push because I’m thinking to myself, “Lauren’s done a lot of deals. She needs that KPI right away. I don’t necessarily need it right away.” Until I got into the situation where I feel like I’m wasting my marketing dollars in Georgia. For somebody reading who’s starting off, can you explain or stress to me how important it is to do KPIs from day one?

KPIs are either something that is going to be a bottleneck for you, and it’s going to stop you from doing other business activities if you make it too complicated. You have to do them though. Over the years, I played around with many different KPIs. In fact, I looked back at all my KPI spreadsheets from 2015 on, and you can see I tracked all these different things. Some of them made sense, some of them didn’t. I’m like, “What are the easiest KPIs to track that you could get a lot of data from?” I came up with leads, offers made, contracts received, deals closed and then tracking your gross profit on all the deals.

We have a section on the course on this. This is what I learned in chemistry class or science in high school. The measurements have to be the same. Otherwise, you’re comparing apples and oranges. You want to do apples to apples. The lead definition has to be the same, and the definition of an offer has to be the same throughout your whole time doing this business. Otherwise, your 2020 KPIs won’t make any sense and will not be the same as your 2021. They’ll be apples and oranges. Start with the good practice of defining the lead to anybody that says, “Yes, I want to sell.”

WI 604 | Wholesale Questions

Wholesale Questions: The definition of an offer has to be the same throughout your whole career. Otherwise, your 2020 KPIs won’t make any sense.

 

If they want to sell, they should go into your CRM and then that way, you know. You can filter your CRM by date created and you can say, “Date created, any lead that came in between December 1 and December 31.” That’s how many leads you got. That’s your KPI for leads. It’s easy. Forever, your CRM is uniform. It’s like, “How many did I get in 2020?” You do date created, January 1 to December 31, as long as you define the lead the same way.

I hear the four pillars thing. It’s not my jam. If you have four pillars of motivation like lead, they have to have some motivation, and then they also have to be willing to sell within the next 3, 4 or 5 months. The price has to be a certain percent. Their asking price in their head at the moment you call them has to be under this estimated amount and that’s it. Those are so subjective.

Three of those pillars are very variable and subjective. For example, motivation. I could listen to a seller, and a seller to me sounds motivated because they said, “I don’t need to sell. Financially, I’m fine. I’m just ready to retire.” I will say that’s motivated. Someone else will say that’s not motivated, but I know from my experience, I’ve bought enough rich landlord deals to know that there’s motivation in that guy.

You have to keep your lead definition so easy and uniform. You can’t screw it up. It’s yes, they want to sell. They go into your CRM and then for an offer. For me, it’s any time you give them pricing, whether it’s verbal, written down, text message, anything. A price that comes out of your mouth to the seller is an offer. If you have a Podio base, you can do an offer sent date, click the date, and it will track how many offers you had on each date so then you can filter it. That’s how we do it. We have an offer sent field that’s a date field and we just click the date.

Let’s say the seller ghosts us for six months and then we made another offer. We just re-click the date to give us a point. Contacts are easy anytime you get a seller to sign a contract. Deals closed. It’s easy. Anytime you close a deal, get the check on your hand, you put in that date. Those are important ones to start. You then start getting more micro as you get on, but as least as a beginner, as you’re starting out, don’t damage your brain.

I’ve seen some people’s KPIs and they’re brain-damaged. There are many fields that you will never, on a regular basis, fill them out. You just won’t do it. Every month you’ll be like, “I have to run my KPI reports. I’ll do it tomorrow. I’ll do it next week,” then you never do it because it’s too hard. Those are four things that are so easy. My Podio does it for me automatically. I can look on my activity page and it’s there automatically. Most CRMs can do something like that for you. Get started. Get in that habit so then that way, you don’t have to backtrack.

I use Podio. For people starting off, do you think that Podio is the easiest to pick up and understand?

All CRMs have pluses and minuses that are out. Some are very expensive. Podio is the least expensive if you do the basic plan and customize it yourself. You can very easily go on Upwork or Fiverr, and find someone who has Podio experience and they can customize it for you to show the basic things that you need. Podio is a great place to start. If you want to get more complicated, you can.

In my experience, some of these CRMs are too complicated and nobody uses half their features, but they pay for it every month. There are some CRM programs that are $240 a month membership type of thing, but you don’t use half of the automation, so you don’t need it. You just need something to track your KPIs. As you get started, a simple Podio works. I love this Q&A. You do have some deals in the pipeline. You’ve got how many contracts so far?

I’ve got two contracts so far, and I know she’s going to sign the contract. We finalized everything and she approved. She’s got kids and a lot of stuff going on, so I know she probably couldn’t get to it right away, but I am 100% confident that she’s going to sign the contract, and I will have three more houses on the contract in the Baltimore, Maryland area.

Start with the good practice of defining the lead as “anybody that says yes.”

For the rest, it’s pushing it to the finish line to get paid and get that check. We have to do a follow-up episode when you’ve actually closed some of those deals. Let’s talk to you 1 to 3 months in. I would love to do a follow-up when you’ve closed about three deals to hear where you’ve come from this day to then three months. You have to let me know when they close. Keep doing what you’re doing, Kejuan. You’re doing a good job. You’re taking action. You’re doing everything you need to do.

It’s overwhelming at first, but every day, you’re going to get better and better. You’re going to figure things out. Every week, you’re going to figure out something. You’re going to have a breakthrough. Something that seemed so difficult a week ago is not going to be difficult anymore. The more you keep going, the better you get. The more offers you make, the better you’ll get in general.

Making those offers, negotiating, getting comfortable with those seller conversations and answering those seller objections, it’s going to make it easier, and you’re going to be better. What I want you to do is every time a seller gives you an objection, write the objection down and come up with three answers that you could have said to overcome the objection and memorize it in your head.

Anytime a seller is like, “That price is too low,” and you get stuttery like, “Well, um, uh, yeah.” What you’re going to say next time is, “But Mr. Seller, did you see that house on 123 Main Street that sold? That house sold for $45,000. I’m offering you $55,000. Don’t shoot the messenger, but you’ve got some neighbors that are selling their house for the price I’m offering you.” You get better at those objections. Your seller conversations become smoother, easier and less stressful for you. You become a better negotiator. Work on that and let’s see where you are. That’s a big project I want you to do. I want to see how you do and how you feel in your negotiations.

You hit it right on the head because I have gotten a lot more comfortable. I’m okay with picking up the phone. I’m less fumbling up my words. You’re right. I can see myself continuing to grow. I will write down any objections that I have from a seller and figure out ways that I can answer the question and make sure we’re getting this contract signed. I look forward to talking to you and seeing what I have. I’m going to have something for you, though.

Kejuan, how can the readers get ahold of you? We have many people who read this and are curious about the Wholesaling Inc. coaching programs. They might want to send you a quick email or a quick Instagram DM like, “Do you recommend Lauren as a coach?” Where could they send that?

They can send it to my Instagram, @Educated_Guy, or they can send it to me on Facebook. You type in my name and you’ll see. There’s probably a picture of me in a coaching uniform. That’s me. Reach out to me if you have any questions. I’m new, but I can try my best to answer them. If not, I have a wonderful coach who would give me some good answers that I can give you some feedback on.

Thank you, Kejuan. Until next time. We’re going to talk soon.

Thank you, Lauren.

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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 software companies. She is also a Wholesaling Inc coach and co-host of 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.

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