Going digital in real estate today is almost inevitable as it offers lots of opportunities without using too much resources. In today’s episode, Bryan and Samantha Mae of Rhino Homebuyers, LLC will talk with Lauren about their virtual wholesale deals and the challenges encountered along the way. Two products of the Virtual Investing Mastery Program hailing from Las Vegas, they are now enjoying big success from their own markets just a few months after finishing the course. The couple will also share their experience working with a Joint Venture partner and a glimpse into their plans. Learn how his couple got the deals while working on their business part-time. Get ready to dive in this episode with this couple.
Episode 629: How to Avoid the Biggest Mistake When Doing Virtual Wholesale Deals
I have Bryan and Samantha Mae from Las Vegas, Nevada, with me. We are going to talk about all things virtual. Bryan and Samantha are a part of my Virtual Investing Mastery Coaching Program. They are having a lot of success with their virtual market. They started only a few months ago and are already closed a couple of deals. We are going to deep dive into those deals and what it’s like to go virtual versus working in your backyard. Welcome to the program, Bryan and Samantha. You guys are in Vegas. How is Vegas doing now with COVID? What does it look like over there?
We follow exactly what California does.
Is the strip a dead zone now?
I don’t know. We don’t go down to the strip. There are only certain casinos that are open at a certain time.
Any mentor that you can afford and hire is the best way.
The Wynn is only open Thursday, Friday, Saturday, and then Sunday, the guests have to get out.
It’s a crazy time. A lot of the big cities are getting hit. The people that work in the big cities lost jobs. It’s terrible. You guys are not working in Las Vegas. You are working in a virtual market. Why did you decide to go virtual?
We did a little bit in Vegas. We still do but virtually that’s where we wanted to start. We didn’t know the direction until we found you.
What I like to say is you can get more for your money or effort in other markets.
A lot of Vegas people have the California mentality. A lot of them came from California. They think that their houses are worth way more than they are. It’s a struggle here.
There is something about the mentality in every different market. What I have noticed in every market I have been in, the sellers are different. It’s cultural, different attitudes. One thing about California sellers is they are very aware of their property values. They definitely sometimes think it’s more than it is. It’s very common. The reason I went virtual was the same thing for the same amount of work and effort I was making in seller calls. It’s the same output. I could make more money in another market. It made more sense for me, too. When did you guys get started with wholesaling? How long ago was that?
In October of 2019, we signed for Robert Kiyosaki, dropped about $35,000 to $40,000 and that went nowhere. We kept going and going, and then started doing a little bit of virtual here with the tribe. We finally found you doing virtually. That was it.
When it comes to going virtual, there is a bit of a recipe or a formula. You could either go at it the way I did, which was on my own and try to figure it out myself. It took four straight years of trial and error and different things. You can get a coaching program that gives you that recipe and finish it in a few days. That recipe, I don’t know. How important is that recipe when we are trying to go do it alone? What were some of the challenges that you had trying to figure out virtual?
Even virtual or even in your backyard, if you don’t know what you are doing, unfortunately, you look up so much information and everybody has a different way of teaching. It’s like, “Which way do you go?” You sit there and you are like, “I’m going to do this and this,” which you have no plan to do this. You are going to go to this and this. I think any mentor that you can afford and hire is the best way.
Obviously, do your due diligence because not every mentor is equal, that is for sure. Sam and me listening to you, your energy and everything we are like, “She might be the one.” It’s because you are straight to the point. It’s either a yes or no. It’s not like, “I don’t know.” It’s like, “No, that sucks.” I have never heard of the pistachio theory in my life. You mentioned it and it’s great. The funny thing is I like pistachio ice cream. I’m the pistachio person that you are always talking about. I’m always laughing about it. No one knows what we are talking about but they will eventually if they join the program.
I do struggle because I have a blunt personality. Things come out of my mouth and I’m equally surprised at it sometimes. The pistachio theory so for anybody who’s reading this, I came up with this thing on the cuff one day on a coaching call. I was trying to explain to everyone about the prices that you contract homes. Sometimes people feel like, “A buyer told me this is way too high,” but what I learned after years and years, and showing multiple buyers my deals versus the same two, was that there are all different types of buyers. There could be a buyer that’s looking for homes in that neighborhood for some unique, personal interest of theirs.
You wouldn’t have found that buyer unless you went out and bid the property to multiple buyers. There are a lot of objectives I had with this story. It was A) To bid out the home to as many buyers as you could. Also, B) Is justifying locking up a property at a little higher price than maybe you wanted to get it at because you can maybe take a shot and see if you can find that one pistachio buyer.
The pistachio buyer, I had thought about it. I go like, “When you are at 31 flavors and everybody goes for the same flavors but there’s pistachio ice cream. Who the hell goes for the pistachio ice cream? I don’t go ever and get the scoop of pistachio. I don’t know anyone who likes pistachio ice cream. Why do they even have it there?”
There’s always one scoop taken out so there was one guy that day that was into pistachio, and apparently, it’s Bryan. He has some unique interest connection with nut-flavored ice cream because it reminds him of his grandma and grandpa, and he would always have pistachio ice cream. That’s the same thing with bidding out your properties to buyers.
Maybe you wanted this property at $85,000 and you cannot get the seller to budge. The seller was like, “Nope, it’s going to be $94,000 or no deal.” Maybe your two top buyers that you always show all your deals to are like, “No $85,000 or it’s not a deal.” You are wasting your time. You are locking it up too high.” What you might find is if you show it to 100 buyers, there’s going to be that one buyer, the pistachio buyer that buys homes in that neighborhood for Airbnb.
Airbnb nets more, he’s willing to pay more for the property so $94,000 makes sense. I didn’t know that theory for the first couple of years of me being in the industry. I would only lock up deals that my two top buyers would approve or I was flipping it even I was too conservative. I was letting things go and I look back at so many opportunities I have lost.
There are so many deals I probably could have done. If I knew this pistachio buyer theory earlier on, I would have made more money. I hope you guys enjoyed that. It’s funny because it’s a trendy word now. Apparently, the pistachio buyer has made it to the TTP platform. It’s hilarious. It’s something I never thought of. I was talking and I pulled that one out of nowhere.
It’s so catchy. That’s the thing, what’s a pistachio buyer? It’s like, “What are bananas? Everything is bananas to Brent.
I never thought in a million years that thing would stick but it is a good way to explain pricing and why you want to bid out your properties to other people. We all do this when we first get into wholesaling. We find one buyer that’s gobbling up ten houses a month. We get comfortable and only want to show them the deals because we are comfortable and we know they are going to perform.
What happens is that one buyer starts slowly taking advantage of knowing that and they give you the lowest price because they know you are showing them the deals. They are thinking about themselves. You are like, “I made $5,000,” when you could have made $15,000. There are a lot of little secrets, tricks and whatnot. I love to give practical advice to anybody who’s reading and we did get a bunch but is there something that you could think of that was maybe a game-changing piece of information, something you implemented, anything?
A lot of stuff that you taught us but comping is one. I know comping is a huge thing. A lot of people don’t realize that but I comp wrong and lost a deal, and then got the deal back. That’s the deal that we are probably going to talk about but also how to pull lists and you showed us the ninja status. That right there is a game-changer. That’s huge.
Go out and find different business partners because not everybody is the same.
The ninja trick that he’s referring to is finding where buyers are buying in that market. When I’ve got approached to make this course, I had no idea where to start. I thought, “I’m going to write down every problem that happened to me in the last several years. Anything that went wrong in several years. I was going back to all these painful mistakes that I made, where I’m like, “I wish I didn’t do that. That one costs me money.” Lots of five-figure mistakes and dumb tax I paid over the last several years.
I thought, “What was the resolution? What did I fix? How did I fix it? What did I do? What was the lesson I learned?” I wrote down all the lessons, I took those lessons and compiled them into ten modules. This was now when I was still working in the Southern California market, which is a big territory. I was wasting marketing dollars, marketing to whole cities or counties. I would market everywhere.
I would get these sellers that are like, “I live in Newport Coast. Do you want to buy my house? Do you know how much this house is?” I would get a seller from Corona Del Mar or something crazy. It’s so expensive I’m like, “Why did I do that?” I was embarrassed. I’m talking to the seller. I feel dumb like, “I don’t have $4 million. This is not going to work. Why am I doing this?”
My brother stumbled upon it or something of how to do this on ListSource. It is basically figuring out how to find the hot ZIP codes in the area and I realized how to target my marketing to the hot ZIP codes. If you do that, you are going to likely have more comps in the area to show the seller that other investors are paying these prices. There are many purposes to do that but it was a game-changer for me too, for sure.
Also, cold calling and then you were like, “I’m not a huge fan but the text blasting that you teach and everything like that is tremendously a big difference. Especially out here in California, people are ruthless even on texting but it’s great. Text messages, you don’t get to respond to them as much as you would like to because sometimes they are very rude. The text messaging has definitely worked for us and I know it works for a lot of other people that you have had on your show.
Cold calling was not my favorite thing to do personally. It’s exhausting. My voice would get tired. I outsourced it but I did do it myself for a while just so I knew what the process was. I was like, “This is exhausting. I’m going to hire someone to do this as soon as possible. As soon as I learned how to do this so I can manage someone to do it, I’m going to hire people.” I did that as soon as possible. When I put myself in the shoes of a student who doesn’t have that type of money to hire someone yet, I at least can say, “I did it. I know it’s exhausting.”
For me, when the texting software got discovered and I figured it out, that was like playing a video game. I looked at it like, “This is like playing a video game.” It’s not that hard. It’s easy to work and it produced a lot of deals. I went with it as my favorite. Personally, we still do cold calls because what we are finding is sellers are getting more text messages every week from different investors. I need to stay competitive and keep my lead flow strong and consistent. We are still cold calling but we are very targeted, focused on our lists. We are trying to go more niche lists. We do a little bit of everything and that’s how marketing always is.
We are always pulling out of some campaigns and then pulling some campaigns, and trying different things. That’s this business. The marketing channels are always changing. The benefit of being part of the tribe is it’s a collective force of people trying different marketing methods and sharing their experiences. It helps us, as business owners, stay on the cutting edge of what’s working and what’s not. That’s a fringe benefit of being a part of this group. Did you guys have closed your first deal virtually? Did you have closed two or you closed your second?
The other one is waiting for the transfer. Doing virtual, you don’t deal a lot with the seller. You communicate in this and that but it wasn’t like babying the seller. Maybe we’ve got lucky but we first did it. I thought I have a good price. I’ve got laughed at. Nobody was even close to wanting to purchase this. We canceled the contract and waited for about a month and asked him again and he’s like, “I have never sold it,” and locked him up at $20,000 less than when I first did.
Within two days, we sold it for $10,000. It’s that quick but also, we’ve got a great JV partner. That’s what you teach in our course. That is huge. Having a good JV partner that knows the business and has a good buyer list makes it very easy. At least our JV partner, Rick, is phenomenal. He took the reins. After we sent it to him, he dealt with the seller, closing and everything. It was a smooth transaction. Finding the right partnership and building the relationship. That’s what you teach. Make sure you go out and find different partners because not everybody is the same.
That was a mistake I made. A couple of times, I went virtual. It’s different territories I’m talking about. I didn’t even think to have a JV partner. I thought, “I will build a buyers list and do it myself.” It was so hard. Even though I was experienced, I had already been in the business for years but I didn’t understand those territories. It’s completely different. Every territory is so different. Someone had recommended, “Why don’t you partner with someone? They will help you figure out the pricing. What you have done in six months, maybe in one week that person can help you figure out the offer pricing. They can help you with all the boots on the ground stuff and the disposition. They already have a big buyer’s list. Try it out.”
The territory that I first did it in was in Oklahoma. We were in that territory for six months. We did 1 or 2 deals in six months. We were banging our heads against the wall. We could not figure out the pricing. We were pricing the homes wrong. I have never been in a landlord market before. I was assuming everybody is flipping these homes. I had no idea how to factor in like rent and what this property would rent for. What are the landlord buyers looking for? I had no clue.
I was pricing them wrong. I was offering way too low. I was offering as a flipper would. Sellers were saying, “No.” I’ve got lucky maybe once or twice and made no money. It’s like nothing. Someone made that suggestion and said, “Listen, find a partner.” The next month, we did five deals in a month. We were like, “We are so stupid.” I was dumb. It was me and my employee who had been with me forever. He runs my company. That was the piece. The stars aligned when we’ve got that right JV partner.
We don’t need the JV partner anymore. It was a process. We used them for about maybe 2, 3 months and we’ve got the hang of it. We started building our buyers list on our own. It was a slow transition. We still talk to that JV partner. It’s an open door. If they have a buyer for any of our contracts, they see sometimes they will bring us buyers and stuff. It’s totally fine. It worked out well. It was a lesson that I learned that I’m glad to be able to teach people not to make the same mistake I did. I’m super happy to have had you guys and I’m very proud. What’s next for you? What are some of the next goals that you are looking to achieve?
I want to do at least five deals a month. That is my goal and her goal as well, and get her at home full-time.
What do you both do for work full-time?
I’m self-employed. I own a window cleaning company.
I’m a charge nurse.
You are very busy with everything that’s going on. I’m sure you definitely want to get home but you guys both work. You can’t do this full-time.
It takes some of my days away.
It’s an early morning start and then in the afternoon around 3:00 when I get home, we try to start texting out people. We have lost a lot of deals but it’s all a learning experience. That’s our goal five deals a month. If we get three, phenomenal. If we get four, great.
It will grow from there. It sounds like you probably need to scale a little bit to help you with some of the lead generations so you have enough leads to get you to that. We will work on that together and we will get you there. Guys, thank you so much for having you. Are you on any of the social networks if anybody wanted to reach out? Are you on Facebook or Instagram? Did you want to share?
I’m so proud of you. Thank you so much. If you guys that are reading are interested in a coaching program, check out www.VirtualInvestingMastery.com, where I teach all things virtual wholesaling. If you are interested, apply there and somebody from Wholesaling Inc. will get back to you on the same day. Thank you so much for your service. I know it’s probably very tough now working as a nurse. Thank you. I hope you stay safe.
- Bryan and Samantha Mae
- @RhinoHomebuyers – Instagram
- Bryan Samantha Mae – 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 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.