Posted on: March 22, 2021
WI 649 | First Real Estate Deal

 

How do you conquer your fear and hit the home run with your first real estate deal? Our guest for this show is one of the best in the class, Aaron Coover. He joined Wholesaling Inc.’s Visual Investing Mastery by Lauren Hardy and came out as a winner in wholesaling. Listen to this episode to discover how he went from zero to two deals in the past three months—virtually! For sure, he experienced setbacks and challenges along the way. But he set aside his fears and kept going! If you are gearing up to get the ball rolling with your first real estate deal, this episode’s for you. Tune in!

Conquering Fear – What It Really Takes To Do Your First Real Estate Deal With Aaron Coover

Episode Transcription

We have an episode with one of my virtual students. His name is Aaron Coover and he went from 0 to 2 deals a few months. We’re going to talk about doing your first deal, what to expect and how he’s been doing going virtual. Aaron, welcome to the show.

Thank you, Lauren. I appreciate being on here.

We appreciate having you because there are a lot of readers that haven’t closed a deal yet. They aspire to get into real estate investing but they might have some fear. You being fresh into closing your first couple of deals, we can talk about what’s been going on in your head during this time? We’re glad to have you.

I’m happy to help.

Tell me, where are you from?

I reside in Dayton, Ohio.

Is Dayton, Ohio your market?

It is not. I am virtual in Indianapolis, Indiana.

Why did you choose to go virtual?

You could sit in your basement in your pajamas and do real estate investing.

I have been researching this business for a little while now and I always was drawn to the virtual method. It was surreal to me that you could sit in your basement basically in your pajamas and do real estate investing and really not have to leave your house.

You chose Indianapolis instead of Dayton, Ohio. Is there any particular reason?

I was drawn to Indianapolis, Indiana because of the size. It has a little bit bigger population than my area. Right down Interstate 70, it’s only about 1 hour and a half to 2 hours. If I ever want to go check anything out there, it’s not too far of a drive for me.

Indianapolis is not that far from Dayton, Ohio, saying an hour and a half to a couple of hours. In California, I didn’t consider myself virtual, even though I was because my market, I would go clear up to Northern LA, which is just the county over Orange County. I’m from Orange County. That’s where I live. I would drive in the car for two hours to go to a flip project and I never thought of myself as virtual at that time. I consider myself virtual when I went out of state but in reality, I think you would consider me virtual as well.

The traffic has to be immense.

The traffic is pretty bad here. That’s where I’ve said, “I might as well go out of state where the wholesaling game is so different.” Where I live in LA, OC Area, the house prices are so different. It just it’s a lot easier to do this business in different areas than where I’m from but I digress. You said you were researching this business for 1 year and a half to 2 years. What were you doing at that time?

I don’t know what sparked the move to going to research the business at scale. I think it was my wife. She purchased a home and we moved into it. I started thinking about real estate investing because we decided we wanted a little bit more income streams. We wanted some form of supplement to our existing income. The house we bought has a mother-in-law suite at the back of it.

That’s where my music studio was, where I do my hobbies and stuff. I put everything my stuff back there because it was a really cool place and it has its own bathroom, bedroom and living area. I just started thinking like, “We could rent this out. Let start making some money here.” We put it on Airbnb and we’ve been renting it out.

My wife got excited about getting some extra income from that. She purchased a second home and has a second Airbnb now. We have two Airbnbs giving income and also, we have the idea of, “What else can we do?” She’s interested in the houses. I had no care for real estate at all but I just was thinking, “How can I get started in this?”

I started researching on the internet real estate investing. The word wholesaling was not even in my radar. I had no idea what it was. I didn’t think much of it until I heard Brent Daniel’s podcast. I listened to that thing over and over, this podcast about pre-qualifying. It just sparked my interest. I’m like, “Wow. This is something.”

I heard him have guests on his show talking about having these checks, title companies cutting them checks for $10,000. I was like, “This cannot be real. This is no way.” Everything about it just piqued my interest. My brain was lighting up like a Christmas tree about the possibilities. That’s how I got interested in wholesaling.

You guys got started in real estate investing with a mother-in-law suite connected to your house. My dad got started in real estate investing the same exact way. In Ohio, he bought a vacation home and the vacation house had a little mother-in-law suite. It had like a mobile home but it was a manufactured home and it was on the property. Ohio has huge backyards. In California, we have nothing like this. He started renting that property out and it paid for the vacation house.

He started thinking, “Why don’t I buy another one in the neighborhood?” He bought another one and then another one. The next thing you know, he got addicted to cashflow. He was finding money and he was using the money in our equity line of credit that we had on the California house we lived in. We had a California home, tons of equity in it and he pulled the equity out to buy these rentals in Ohio.

The cashflow worked out that he could still pay the interest and he could still cashflow on these homes and he just worked on paying them down. He ended up owning about twenty rental properties in the neighborhood. That’s how he got started in real estate investing. I think a lot of people get started that way almost by accident and then they go, “Why didn’t I think of this?”

WI 649 | First Real Estate Deal

First Real Estate Deal: You don’t have to be tied down to a nine-to-five job in the corporate world.

 

“It seems so stupid. Why didn’t I think of this?” When you fall into it by accident, you’re less intimidated. You’re not as scared as if you saw an infomercial and then you want to go for it but then the funny thing that you bring up is wholesaling. I always joke that wholesaling is the gateway drug to real estate investing.

It doesn’t shock me that you are dipping your toe into real estate investing and then you discover wholesaling. I think that wholesaling is an amazing way for people that are new to get started into real estate investing because you don’t have the liability of ending up with the actual asset that could have a lot of construction unknowns. That’s what everybody fears in buying a property.

There’s going to be some construction unknown issue that you didn’t know about at the time of purchase. That’s everybody’s fear or the second fear is that the property is going to go down in value. Those are the two things. It eliminates those two fears for people until they get comfortable enough and then they see other people doing it.

They sell the property off and they see other people profiting from it and then eventually they go into, “I’m going to buy that rental for myself.” You’re right there on that path and I think that’s awesome. That’s how my dad got started and essentially, you could say that’s how I got started because I learned about real estate from my dad.

I want to touch on that I have always wanted to hack the system that plays people that work. Maybe have some tax incentives as being a business owner now. Anywhere I can to not have to be tied down to a 9:00 to 5:00 job in a corporate world. I was working at a corporate job. I had a good job. I was a technical supervisor in a factory and I was making probably $50,000 a year. I really have no reason to quit but I got my hands on that book, Rich Dad Poor Dad. I read that thing and it just changed the game for me. It’s flipped my worldview.

Honestly, I had the same story. We have a lot of parallels. When I first got started many years ago, I was in this corporate rat race. It felt very dead end. I couldn’t get promoted the way I wanted to. I wasn’t making money. It felt like my future was in my boss’s hands and there were so much office politics.

It didn’t really matter how hard I worked. Whether I was getting the promotion to the next level was a political question. It was office politics. It was who my manager was and if they liked me, it was timing. Is there even that position available? Does the company have a budget for it? That frustrated me because I was making about $55,000 a year in Southern California. It wasn’t enough money.

Invest in yourself. Even if you don’t make money back right away, what’s important is you learned something valuable.

I started looking into real estate investing as well. I got started as a house flipper so I didn’t start in wholesaling but I started in-house flipping. While I was working that corporate job, I only had to flip two houses and I made more than I made that year in my corporate job. As soon as I had that money in the bank, I closed all those deals. I had the money in the bank. I said, “I’ve got a year’s salary here. I can quit.” I can go a whole year and not get paid and if this doesn’t work out, I’ll get a job at the end of the year. That’s the way I got into it.

For me, I didn’t quite have anything lined up when I quit but I did get into working for myself. I had an Uber and a Lyft. I drive people around for money and it’s not like anything you can do for long-term wealth or anything like that. It’s just probably a little bit less money if I was doing it full-time to my corporate job.

I did that and hustled and learn everything I could. I listened to the Wholesaling Inc. podcast when I was in the car driving people around. I had a headphone in my one ear so I can listen to the podcast and get the information I needed and be able to converse with the passengers and everything like that, what I needed to and still be able to focus. I did that over and over again and I decided, “I’m going to have to join this program,” and here I am.

Was it scary to join the coaching program? It’s a lot of money.

I had a little bit of money and I called in. I talked to somebody. A real nice guy. He told me the price. I’m like, “That’s awesome. I really see value in your program but I just couldn’t afford it.” 2020 hit and I got some stimulus checks. I’m like, “I’m going to put this back into myself. I’m going to invest for myself here.” That’s what I did.

I said, “I’m going to take this stimulus check and I’m just going to go try to make more money off of it by reinvesting it.” I got on the phone with a guy from Wholesaling Inc. He was talking to me. He’s like, “Here’s a price. Do you want to sign up?” I paused for a moment. I said, “Heck with it, just sign me up. Let’s do it.” He’s like, “That is correct. That is the attitude you need to make money in this business. You’re going to be successful just because of that.” I said, “Let’s do this.”

You’ve only been with my program for a few months and it looks like you’ve closed two deals. You already are further ahead in business than a lot of people because a lot of new businesses take at least one year to break even. A lot of new startups, you can ask, they go in the red for the first year. It’s amazing that you’ve already found something that you’re not in the red. You paid for the program so you now have that weight off your shoulders because I remember when I was newer and I bought into coaching programs. The first thing I thought of is, “I better close a deal that pays for this program.”

I thought about it like this. I said, “There are tons of people that go into college debt and they learn and get all this value from school and they pay thousands of thousands of dollars for education. This is education. I’m going to invest it in myself. Even if I don’t make this money back right away or at all, I learned something. I provided value to me. I’m going to be a better person because I have that added to my toolbox.” I knew I was going to be able to make some money with it because I have a lot of confidence in Wholesaling Inc. and just everybody that I’ve ever come across in Wholesaling Inc. is super positive like Brent Daniels, you, Tom and all those guys I used to listen to. It’s great.

I’ve been there with coaching programs and starting out. It’s scary to take that leap of faith but every time I’ve ever spent money on coaching, I’ve always made that money back at least 4X within a matter of maybe six months from purchasing the program. I know that every time I invest in myself, I am going to get that investment back and that does apply to everybody.

Keep that with you, that every time you invest yourself, you’re going to get it back. You were listening to the show so you were doing the YouTube University stuff. Everything that’s free, you were milking it for all it was worth, which is exactly what I did. What is the difference between the free stuff and then investing in a coaching program? How did that help you?

WI 649 | First Real Estate Deal

First Real Estate Deal: You will find a handful of motivated sellers who want to talk to you and need you.

 

With YouTube University, there are tons of different information. There’s also a lot of similar information and picking it from different places and all putting the pieces of the puzzle together. It can be done but it’s a lot of guesswork possibly but with joining your program, I have a strategic plan laid out in front of me, right there in plain view. Your team at Virtual Investing Mastery and also the people that work when you’re not available, just answer my questions lightning fast and I get everything in my head that I need to do and it’s clear.

It’s like a puzzle. You take a puzzle out of a box. You dump all the pieces in front of you and they’re everywhere. They’re scattered. You’re flipping the pieces over. You’re trying to figure out which ones fit together and which ones go together. That is YouTube University. That’s the free stuff. When you invest in coaching and mentoring, that’s the puzzle delivered to you already put together.

I am glad that you were able to share your story because I know that when someone is new, they don’t really know what to do next and there’s probably some fear into investing into coaching programs. I’m glad you’re able to share that story. Given what you’ve gone through so far, is there anything that you would maybe do differently? Is there any piece of advice you can give to anybody who’s new and starting out?

When I pulled the trigger on the coaching program earlier, I don’t have any regrets about doing it at all now or before I got into it. I knew I was going to get into it and put my work into it. This isn’t an easy business. The steps can be easy but you have to put a lot of thought planning and strategic form of maneuvering.

That’s why I chose Wholesaling Inc. because it was a no-brainer for me. I’m ecstatic with the results I’ve got. I’m happy with where I’m at and I have a vision now. Like you said to me before, don’t be in analysis paralysis. Just take action. I think you called me out on that like five times in different coaching calls.

I got to have a question you’re like, “Nope, analysis paralysis. Next.” You don’t say that. You joked around with me and you said, “You need to just take action on that item and don’t overthink it.” Some of the stuff is like that. You just have to take action. Think about what you need to do later after you’ve taken action and build from there.

That truly is a benefit of mentoring. I don’t want to toot my own horn but I can hear anyone’s analysis paralysis questions and I know that’s just an analysis paralysis question. That is irrelevant for you and you don’t need to even know the answer. A lot of those questions come in terms of forward-thinking, like what-ifs. I’m trying to think of an example. A girl had said, “I made my first offer to a seller and she said that she’s going to take the offer and review it with her financial advisor. Has anyone had this happen to them? What do I do?”

She was seriously stressed out and I said, “You’re already assuming that the seller’s financial advisor is going to not like your offer. You’re forward-thinking. You’re already thinking the negative way that the seller just told you something. She just said a couple of sentences and that just riled you up enough to come on the forum and post that question. You should just make more offers so you don’t care what the seller says.”

You want to have the volume that you’re going through so many people every day. You can’t just spend all this extra time on one person because of some situation like that. Every day you’re a busy person. Your time is valuable and we want to help people that need to have their problems solved. The people that need their problems solved are going to be the motivated sellers and they’re going to dictate to you what they need to be done and you will find a resolution.

You’re making enough offers to sellers. You are going to find the handful of the motivated ones that want to talk to you and need you and then the ones that aren’t motivated. You’re going to hear that as well. It’s not going to ruffle your feathers or stress you out because you have that handful of motivated sellers that you’re working with.

Don’t be in analysis paralysis; just take action.

I’m glad you touched on that point about analysis paralysis and asking those questions and that I was able to help you. I’m truly honored that you chose my coaching program. I know that there are a lot of coaching programs out there. It’s always very much an honor that you chose me and then just to hear that you’ve had success with it.

Honestly, it is great to hear. I do keep myself up at night. If I don’t hear stories like this, it will keep me up. I do care. I really truly want to hear that my program is helping people and changing lives. It sounds like it’s working for you. I’m super glad to have had this conversation with you, Aaron. If anyone had any questions, maybe people want to reach out, are you on any of the social networks and would you like to share?

If anybody wants to network, you can reach me at Aaron@ADC-RealEestate.com.

Aaron, thank you so much for coming on. If anybody is reading and wants to know more about the coaching program that Aaron is involved in. It’s my Virtual Investing Mastery Coaching Program. If you want to find out more details, check out the website, www.VirtualInvestingMastery.com.

If you submit your application there, somebody from Wholesaling Inc. will reach right back out to you to tell you more details. Aaron, thank you so much for coming. Hopefully, very soon you will have more deals in the pipe to talk about. We’ll have to have you come back. Thank you for reading. We will see you next time.

Thanks, 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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