Posted on: February 01, 2021

Ever wondered what it’s like running a wholesaling business with a partner? Regardless if it’s your significant other, friend, or family member, you’ll get a feel of what it is like in today’s episode!

Arielle Gelosi and Derek Dillon are the first couple Lauren interviewed on the podcast. While the two have only been in the business for a few months, they have already earned more than $30,000 since they first started!

If you are considering working with a partner and would like to know what to expect and if it’s something that’s to your liking, this episode is for you!

Key Takeaways

  • How long it took them to close deals
  • What they both do
  • Number of hours they allocate for their wholesaling business
  • What it’s like working with a partner
  • How people can get ahold of them

RESOURCES:

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

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Episode Transcription

Lauren Hardy:
What’s up rhino tribe. This is Lauren Hardy, and you are listening to the Wholesaling Inc. Podcast. Today I have a couple of my students, Ariel and Derek Dylan. And they’re a part of my virtual real estate investing mastery coaching program. And I’m super excited for them because first of all, they’re the first couple, I think I’ve interviewed. I have not interviewed an actual couple yet. And I really want to talk about working with your partner on this episode, because I know there’s a lot of people that want to get into this with their boyfriend, girlfriend, husband, wife. And I want to know… Even I’m interested how do you guys make this work? But before we get started, let’s introduce you guys. Welcome to the show.

Derek:
Thanks for having us.

Lauren Hardy:
So, okay. You guys joined my coaching program sometime in August and you have made $30,000 total.

Ariel:
Yeah. $30,000 since we started.

Lauren Hardy:
That’s amazing. We’re filming right now, early January and you started, I think probably tail end of August. There’s always that period of actually having to listen to the course and absorb the information. So how long would you say as far as when you first started taking action, did it take you to finally get those deals closed?

Ariel:
So for us it was a very interesting story because I decided one day, cause we were listening to the podcast and I’m like, “Derek, how do we get involved in this?” Because Derek has a background in real estate. As for me, I have a background in accounting. So I just asked him like, “How do we get involved with this?” And he forced me to sit down and listen to the Wholesaling Inc. podcast and I’m like, “Okay, I want to do this. Let’s try this.” And Derek being someone who he takes immediate action, he doesn’t wait to do anything, which is one of the things that really value in having him both as my life partner and business partner. And within, I think the first two weeks of us just throwing spaghetti at the wall, we already had our first deal. And this was right before we enrolled in your course.
So I honestly in hindsight have no idea how we even did that in such a short amount of time, but it kind of gave us the confidence that, oh, we can do this. Like we can make this a real thing. So I think after that, that’s when we kind of really started to figure out what kind of systems do we need? What kind of schedule do we need? And really figuring out all of those details. And that’s when we invested in your course. So because then once we had that first deal, we were like, okay. So that was like a gift from the world. So it’s how do we-

Lauren Hardy:
A sign.

Ariel:
Yeah, exactly. So it’s like, “How do we get the second deal or the third deal?” So that’s when we invested in your course and started going through it and realizing like, “Oh my gosh, we need to use this software.” Or, “We didn’t even think of doing that. Or even just some of the templates that you gave us were just so crucial in closing The deals that we’ve done since then.

Lauren Hardy:
Yeah, I love it. I mean sometimes I like to say before you get into some kind of coaching program, but you’re more just surfing YouTube and listening to podcasts, the podcasts and YouTube gives you vision, but they don’t give you direction. So a lot of people come to me with all these ideas, but they are… It’s like a very crooked path. They’re going all over the place. They’re turning left and turning right and kind of not knowing what to invest their money in. When it comes to marketing campaigns, what programs and software should they buy? What lists should they pull and then work on?
It’s so easy to screw this up. I’m telling you. You could have maybe landed on the wrong YouTube video from some guy that lives in Northern Virginia and maybe some random list works for him in Northern Virginia, but maybe that’s a niche thing and he doesn’t have a ton of experience. He just has that one piece of experience of this list work for me and everybody in the country can see that YouTube video and then they apply that technique and they find that it doesn’t work or it didn’t work for them in their market. And that’s because they stumbled upon a YouTube video that gave them some vision.
I mean, I don’t want to say you got lucky because you earned what you did there with your first deal, but you got lucky that whatever vision you had was the right one and at least puts you into a marketing campaign that worked and you ended up getting a deal out of it. And then that was kind of your sign from the universe of let’s take this money, invest it and keep learning and get that direction. And now you’re honing in your skills, my course gives kind of a really good framework, a recipe. Follow my recipe. It absolutely works. When you’ve done like 10 deals, go ahead and go off recipe and try different things if you feel like it. And I think that that’s the value of coaching programs.
So yeah, 30 K in just a few months, which is amazing. And and we kind of skipped over this. You guys both have your own careers. You guys both do things full time, right? So what do you guys both do? What are your industries?

Ariel:
So I’m a accountant by trade. I have my own virtual bookkeeping business. So I work with a lot of young millennial women who are starting online businesses, whether that’s online coaching programs. So I’m actually very familiar with the coaching space or if they are yoga instructors in the online space or marketing consultants, or really any kind of millennial entrepreneur who’s using social media to market their business. So I work within the books for them and kind of provide them financial guidance. So a lot of numbers for me.

Lauren Hardy:
That is such a cool, niche to be in right now because it’s very right now. So, that’s really cool. And then Derek, you have a very interesting job. Please tell us more.

Derek:
I’m still looking for a word that clearly defines the job. I call myself a firefighter sometimes, but what I do is I have a clothing brand called Cleaver and when coronavirus wasn’t happening, I would work with a [inaudible 00:07:25] helping them sell merchandise. So I don’t really know what to call it, clothing brand owner.

Lauren Hardy:
You’re a clothing brand owner. So you’re an entrepreneur and you’ve got your own clothing brand. What is the niche or what is your theme?

Ariel:
Kind of the horror industry.

Derek:
Horror movie lifestyle brand. It’s a very [crosstalk 00:07:45]

Lauren Hardy:
Murder lifestyle. Just say it. Murder lifestyle.

Derek:
Yeah. Teenagers love it. So pays the bills and I do love it.

Lauren Hardy:
I think that is so cool. And honestly, you can feel free to take a coin murder lifestyle, put it on his shirt. That’s fine. Just send me a shirt that says murder lifestyle.

Derek:
Will do. I like that idea.

Ariel:
It’s so [crosstalk 00:08:10]

Lauren Hardy:
So yeah, that’s so probably the most unique thing that I’ve heard. There are so many industry that somebody is in.

Derek:
Yeah. It’s weird.

Lauren Hardy:
Yeah, it’s weird, but it’s awesome. I mean, you found something, there’s a niche, people are interested in it. So it’s so cool. So you guys are both entrepreneurs. You guys are busy with that, but you wanted to pick up a side hustle. So how many hours do you work in your wholesaling business while you’re juggling these careers?

Derek:
Is that combined or-

Lauren Hardy:
Let’s say combined. We’re going to call you, you guys are one unit to me.

Ariel:
Okay.

Derek:
Okay. Maybe 10 hours a week.

Ariel:
Yeah, because we were smart and we hired a VA right off the bat because we knew with our schedules as they were, we’re already working full-time, if not more full-time within our own business. So right away, we knew we needed help to do this. So I think for the first deal, Derek put in a lot more hours with cold calling. But once we had like that money come in from the deal, we immediately hired a VA to start helping us with the texting and with the marketing.

Derek:
And enroll to the course.

Ariel:
Yeah. So in the very beginning it was a lot less. But now that we’re kind of like we’ve taken the last month to figure out a way to restructure our own businesses so that way we can dedicate more time to the wholesaling and figure out how to scale this without neglecting our other businesses or our relationship in the process. So there’s definitely a learning curve to it. But I feel like in the past to close those deals, it’s been about 10 hours, which [crosstalk 00:09:41].

Lauren Hardy:
It’s not that much. I mean [inaudible 00:09:43] like 10 hours… There’s a lot of people that have a spare 10 hours. And I mean you in a few months made $30,000. So it’s like, if you think of what you could do, I mean, I think that’s really inspiring to a lot of people that have jobs that maybe they make 60,000 a year salary. That’s a half of somebody’s salary, but they work full time. I mean, that’s crazy that just the amount of financial freedom that this business gives you is amazing. And the one thing that we both we relate on, that we both have the struggles, we live in a pretty high priced area. So you joined virtual because you live in California. You guys lived in LA, right?

Ariel:
Yeah.

Derek:
Yeah.

Lauren Hardy:
Yeah. So this business is tough and it’s very difficult in an area where real estate is so valuable and sellers are very aware of the value of their homes in LA. Did you guys try doing this in LA at all?

Derek:
I think we fooled around with lease options here in LA.

Ariel:
Just for like a day.

Lauren Hardy:
For one day. You’re like this doesn’t work.

Ariel:
Yeah, exactly.

Derek:
No, because sellers are very savvy here in Southern California. Everybody, no matter how old or young they are, they know the value of their home and they know what their neighbors houses are selling for.

Lauren Hardy:
They are. And its part of it’s like cultural. There’s this cultural thing of we live in Southern California and the sunshine state. And it’s more of a cultural thing that just everybody knows that if you own a house here in California, that’s your biggest asset. So it’s really hard. You’re lucky that you didn’t at least try to make California work for a while because it’s really tough to make it work. And it’s frustrating.
So at least you kind of have that foresight to go virtual before you wasted too much energy and got too discouraged because what a lot of people do is they start in these areas, California, Miami, New York, not knowing because they listened to a YouTube video from some dude in Northern Virginia, who’s doing this and it works and whatever. So then they’re like, you know what? I’m in New Jersey and I’m going to try it here. And the same technique doesn’t work there because it’s a different market and same here, southern California and they give up. They’re over. They’re like, “This business doesn’t work. Forget it.” And it’s like, no, it does work. It’s just that it doesn’t work where you are from very well. You can do it. People do deals here. It’s just difficult. And it’s going to cost you a lot of money in marketing dollars.
Let’s talk about couple of goals. So you guys are so cute. Couple goals over here. I love the idea of couples working together. I’ve always had this fascination with it. I’m single. Well, I have a boyfriend, but I’m a single mom. When I started this business, I was married and my ex didn’t really have interests. He had his own career. His career he was doing while he was growing in it. So he didn’t really have interest in going with what I was doing. So I was doing it so low. I’ve always been doing it so low.
And now I’m thinking, well, I’m opening up my life to people and I have a man in my life who actually has flipped houses, funny enough. And we’re very compatible. We have very similar careers and we’ve talked about working together. I want to ask how do you make it work? And also what are some of the obstacles? Because I think it’s important that we don’t go into things with blind optimism and I’m like, I could, I could be blindly optimistic. And yeah, we’re going to work together to make great. Everything’s going to be great. And the company is going to grow. We’re going to make all this money. And we both get to quit our full-time jobs. Awesome. Like that’s probably the blind optimism, but in reality, working with your partner, is it all that great? Is it all roses and butterflies?

Ariel:
Depends on the day. I would say that… We’re actually very good at communicating with each other. So I think you need to be honest with yourself, like, do you and your partner communicate well. Because whenever there’s issues that come up, because we have different styles of how we run our own businesses, we have different styles for how we like to lead team members, we have different styles on how we’d like to even set goals. So when both of us who were both very strong personality types, both successful in our own way and trying to tell the other person, no, you got to do it this way. It requires a lot of communication and a lot of patience.

Derek:
And I’m difficult.

Ariel:
Yeah. We’re both difficult because we both think that our way is the right way.

Lauren Hardy:
So did you guys just go in it and sort of assign roles like okay, you’re obviously going to be the financial one and then you’re more probably marketing or what did you do?

Ariel:
So we figured out what our strengths were. So when we first started, he was handling acquisition because he is a marketing genius. I don’t know how he does it. But like Derek is the one of those kinds of guys where it’s like, “I can sell you my pen.” Give him two minute… I don’t know where he gets it from. I think it’s cause he wasn’t real estate agent in his past life.

Derek:
No. In my younger life… In my early 20s, I was a real estate agent in New York city and the Hamptons.

Lauren Hardy:
Wow. Okay.

Derek:
And I didn’t want to do the foot work of driving buyers around to look at properties and having sellers complain. And that’s how I stumbled onto wholesaling and I was doing that in Philadelphia. So I already kind of had an idea of wholesaling, just her, not really knowing as much about and having no experience. So it was a fun learning experience to watch because she really enjoyed it. And that’s all I was hoping to see was passion out of her.

Ariel:
So yeah. So he was handling all of the acquisition side and then once you would have a contract, he would pass it off to me and I would figure out a disposition or finding a buyer or talking to buyers or marketing it in Facebook groups. So we kind of had designated roles. So we weren’t always in each other’s business, but at the same time I needed to know what was going on on his end and he needed to know what was going on on my end. I think that was like the easiest way. But now he is starting to let me take on some cold calls, which is a learning curve.
So it was great because he had the experience, but at the same time it was so strange me having to go to him every day like, “Okay, what am I doing today?” “Okay, boss man, what am I working on today?” That was a little strange for me because usually I’m in charge, so.

Lauren Hardy:
Yeah. No, that’s a really good point because somebody is kind of got to be in charge a little bit. So yeah. I mean, that must be kind of weird to change that role of like, “Okay, now you’re the boss for these eight hours.”

Ariel:
Yeah, right.

Derek:
Especially when she’s the boss of the household to begin with. She’s got to take orders for me in real estate.

Lauren Hardy:
Yeah. No, that’s really tough. Yeah. That would be really hard for me. And I’m not good at telling… I’m not actually that great at telling my partner what to do. I’m not that bossy I don’t think. I’m very easy going. Sort of like, “I am whatever you want to do.” “What do you want to eat today?” “Whatever you want to eat.” I’m kind of that partner.

Derek:
That’s more like her.

Lauren Hardy:
Yeah. So it’s hard. I don’t know if I’d be able to be like call these 10 people, blah, blah, blah. I wouldn’t be able to do that. I don’t know.

Derek:
That’s how I am. And it doesn’t work well with her.

Lauren Hardy:
Okay.

Ariel:
He would tell me to do things and I would be like, “No, I’m not doing that.”

Lauren Hardy:
Would you ever where he would tell you and you’re like, “Why don’t you do that?”

Ariel:
Yeah. A lot of time.

Lauren Hardy:
Really.

Derek:
But I wouldn’t do it.

Ariel:
[crosstalk 00:17:25] Yeah, but that was a me issue. And then I realized that I was the one causing hiccups in our business that we’re trying to grow just because I wasn’t willing to… I don’t want to say take orders, but let him take charge. But I think our biggest point was that me just surrendering like, “Okay, you know what you’re doing here. You’ve done this before. You know what’s going on. I just need to listen to your advice.” But it also required me to learn on my own because there are times when it’s well, I don’t want to ask him for his advice. I don’t like his advice.
So then and during those times I would have to go on a YouTube spree or go back to your course or have to learn for myself so that way I learned the skills to gain the confidence where I wasn’t asking him every five seconds is this what I’m doing. So yeah. So it was kind of my own little development journey. But now that I feel I kind of like understand how all the wholesaling pieces go together. We can actually just have a conversation about it rather than him like, “You got to do this X, Y, Z today.” And me just being like, “Well, I don’t want to do it because you said.”

Lauren Hardy:
Right.

Derek:
And we have different schedule. Our schedules are completely different. So recently, she’s just been doing her tests on her own and then I kind of just do mine throughout the day and check in with people. And I think it works much better this way because now that we found a way to find the trust and working with each other and she knows what’s going on.

Lauren Hardy:
Yeah. That-

Derek:
[inaudible 00:18:56] make her feel like a baby.

Ariel:
But I kind of am in the real estate world. [crosstalk 00:19:01].

Lauren Hardy:
That’s funny. But you know what, you’re going to learn it and then take your kind of your financial strengths and probably improve there because he might not have that skill.

Ariel:
Yeah. [crosstalk 00:19:12] Because since he was handling acquisition, he was giving me numbers and I would look at those numbers. I’d be like, “That doesn’t make sense. No. I’m not selling it for that price.” Because I would be the one trying to find buyers. And I’m like, “I’m not going to find a buyer for that price.”

Derek:
And the last one we closed, Lauren was the one that helped us get that price down because we had to renegotiate the contract. We locked it up at a price that was way too high. And that was kind of our acquisition manager’s fall. And then I think Aerie texted you saying, “Hey, we got this property. The contract’s about to run out. How do we get this lower?” And I don’t know what you told her.

Lauren Hardy:
What did I say?

Ariel:
I think it was on in one of the posts that we put up and we would just have to be honest with the guy and be like, “We won’t be able to buy it for this price. But if we went down to… We had to go drop it 10,000.

Derek:
No, its 12,000.

Ariel:
12,000. Oh gosh.

Derek:
12,000. He came down and then we ended up selling it, which we wouldn’t have been able to do. Because I was ready to just give up on that contract. So I just was kind of just chalking it up as a loss and she kind of put a fire under my butt, say, “No, don’t let this thing die.”

Lauren Hardy:
No. Ask for the reduction because… Chances are there are so many investors out there that seller was knowledgeable. He’s probably had other offers on the property that were the price that you tried to reduce it to.

Derek:
He did.

Lauren Hardy:
And, but then he sort of thought he might have gotten lucky by getting you guys to agree, but he was secretly kind of crossing his fingers, holding his breath a little bit of like, “Okay, let’s see if they actually when they come tour it, are they going to actually be able to pay this or want to?” So I guarantee that’s what we found is our sellers are not surprised that we come back and say we can’t pay that. And chances are, they’d already gone through maybe two escrows or kind of entertain several offers. So they know you’re being fair and they’re just ready to sell.
So, that’s actually what happens all the time. So I recommend when you can’t make a contract work because you go see the place and you find some sort of unforeseen repair or the house is in worst condition, you just have a conversation with the seller. “Hey, Mr. seller, did you know that you’ve got a really old roof that really it needs to be repaired, it needs to be replaced and that costs this much. Could you see yourself adjusting the contract to 93,000?” That’s how I say it. I like to say adjust the contract to 93,000. Sounds a lot better than reducing your price.

Derek:
Yeah. I’m going to say that later.

Lauren Hardy:
Yeah. You just got to find better ways to say things, so. Well, that’s really cool. And then you saved the deal and got it, right?

Derek:
And got an offer over [inaudible 00:21:53]

Lauren Hardy:
It’s beautiful when that both works on both ends. You got one, you pushed one up, you pushed one down. That’s the sweet spot that we love. So, that’s amazing. And I think it’s really great that you guys are in this together because this business is hard and I want 100% needed a partner my entire career. So what I did instead is I just hired someone. When I hired this person, I think five or almost six years ago. His name is [inaudible 00:22:29] A lot of you guys know who [inaudible 00:22:30] is. Or you’ve seen him on some of my stuff or videos or whatever.

Ariel:
I see his name [crosstalk 00:22:35].

Lauren Hardy:
You see [inaudible 00:22:36] his name all the time. Did you know, actually we have a student in our group, his name is [inaudible 00:22:40] Same name, which is funny, but not the same person. But anyway, so I hired [inaudible 00:22:47] when I think I only had two years experience. I was like, “Hey, I just need a right-hand man. You’re going to be my assistant. You’re going to learn everything. I’m going to teach you everything. And you’re just going to be able to replicate me because I am busy mom and I don’t I can’t always take seller calls.” And so I just gave him some initial job roles of lead intake. He mainly had to handle the lead intake and updating Podio and put in, following up with leads. And then I did more of the acquisition role. Of course, I’ve scaled it since then. And [inaudible 00:23:16] now runs my company. [inaudible 00:23:18] runs my company. I mean, he is my work husband, so to speak. I have implicit trust. He’s a signer for my company. We don’t talk all the time. He closes the deals, he approves pricing. I trust him fully on that stuff. I got really lucky there. So I did hire. So I guess if you don’t have a partner or spouse that wants to do this with you, you can do what I did and just hire someone to be that person. And I hope for anyone that they get lucky and find someone like [inaudible 00:23:49] Because I found somebody who was actually believed in me as a person. And he stuck with me for six years. And hopefully everybody can find somebody like that or they can do it with their partner like you guys are doing. So, well, you guys are awesome. How can people get ahold of you if they have any questions? You guys, are you on the social networks? Instagram.

Ariel:
Yeah, definitely. So you can reach out to me. It’s Ariel [inaudible 00:24:13] So I’m not sure if you want to put the spelling in the show notes.

Lauren Hardy:
I will. I will tag you in the show notes. What about you, Derek? Are you anywhere?

Ariel:
I’m on Instagram, but I don’t want to scare the listeners with my handle. It’s a Derek Dylan 666 on Instagram.

Lauren Hardy:
I love it. I’m totally going to look up you. I’m totally looking up your murder lifestyle. [crosstalk 00:00:24:36].

Derek:
Oh, god.

Ariel:
I keep him out completely of my business Instagram handle. [inaudible 00:24:42] I don’t need that. I don’t need that. [crosstalk 00:24:44].

Derek:
[inaudible 00:24:44] online persona in itself. So it’s kind of this point it’s like, I’m an emo kid that turned it into a job somehow.

Lauren Hardy:
That’s amazing. That’s so cool. I think it’s amazing.

Derek:
Now I’m best friends with rock stars I grew up listening to. I mean, it’s cool and weird. And I wish I had a private personal Instagram that was a little different so if you’ll look me up, [inaudible 00:25:09].

Lauren Hardy:
I’m sure we won’t miss it. So I will put that in the show notes. And if you guys are listening to this and you are interested in a coaching program that is more specific to being virtual, I have a virtual investing program, all things virtual investing, virtual wholesaling. If you guys want to check out www.virtualinvestingmastery.com, we’ve got a great group, Ariel and Derek are in it. And yeah, we’re having fun. Students are killing it, crushing it, living anywhere, investing where they want. That’s what I want to say. I always say so if you guys are interested, apply there. And you guys, I’m so proud of you. Hopefully you guys are going to close a lot more in 2021 and we’ll have you back and you can update us on how you guys have grown this business.

Ariel:
Definitely. Yeah. Look forward to it.

Derek:
Yeah, same here. Thanks for having us.

Lauren Hardy:
Thank you. Bye.

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