Posted on: March 29, 2021

Creativity, strategy, and the right market are all our guest has to run his wholesaling business virtual and hit big deals.

Our guest for this show, Kevin Manuel, is a perfect example of nailing the business virtually by venturing into his chosen market. He will talk about doing his wholesaling business virtually as a graduate of Lauren Hardy’s Virtual Investing Masterclass program. He is new to the industry but has crushed it by closing four deals in just a year and has five more in Escrow.

In this episode, Kevin will talk about his real estate investing journey. He will share his story on how he grew his business fast from his backyard, applying what he learned from the coaching program. Kevin will also talk about his chosen market to do business virtually. Also, he will share his plans for his business.

Learn how Kevin made a lot of deals from doing business virtually for a short time. Listen and jut down those important points!

Key Takeaways

  • When Kevin started real estate investing
  • Why he decided to get into real estate investing
  • What made him come to the Virtual Investing Masterclass program
  • His experience doing business in California
  • What he did to get to where he is now in his business
  • His next steps
  • Finding his amazing JV partner
  • More about his chosen market
  • Tricks he learned from the coaching class
  • Kevin’s plans for his business

RESOURCES:

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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 Kevin [Manual 00:01:05] with me we are going to chat about virtual wholesaling. Kevin is new to the business this year, but he’s already crushing it. He’s closed four deals. He’s got five more in escrow. It’s bananas. Kevin, welcome to the show.

Kevin Manual:
Thanks for having me. Excited to be on.

Lauren Hardy:
Yeah, we’re excited to have you. So you started out, you are a student of my coaching program and you started out… When did you first start real estate investing?

Kevin Manual:
I started in August, 2020. Like a lot of people here in Southern California I tried to do it in my own backyard and it didn’t work out for me. So I went virtual wholesaling in December. So still pretty new to this whole thing.

Lauren Hardy:
So, take me back. Why did you decide to get into real estate or real estate investing?

Kevin Manual:
For the last two and a half years I worked for one of the, I’m not going to say the name of the company, but it was one of the larger real estate investment coaching and mentorship programs. One of those companies that travels around the United States and does the three-day seminars. So I was on their sales team selling their programs. So, I was in the real estate industry but I wasn’t investing in myself. I always wanted to do it. But 2020 with the pandemic and everything, my company was effected pretty bad. I think we let go about 90% of our company there and 500 plus employees. So I was furloughed like three times throughout the year and that actually freed up my time to allow me to begin thinking about doing this for myself.

Lauren Hardy:
Wow. That’s crazy. So you actually worked for a coaching company. I didn’t know that about you.

Kevin Manual:
Yeah. I kept it on the down low. I didn’t really want to talk about it but I never invested, I just sold it and I knew the lingo and I knew a lot of the strategies but I never took action during my time working there.

Lauren Hardy:
Right. So what made you come to Wholesaling Inc and my program?

Kevin Manual:
I heard you on the podcast and I just resonated with your story. I mean, anybody who wants to do this that lives in Southern California and they hear your story and if they’re not motivated by that, then, I don’t know. I don’t know what’s going to get them motivated. Because I just clicked and I related to you. Like your path that you went down and start the business I mean, it was like, “Man, that’s kind of what I’m going through right now.” Because I was going to open houses, I was negotiating with sellers here and there is unlivable horrible properties that are going for half a million and it’s crazy. So as soon as I heard you talk about virtual wholesaling on the podcast, I figured that’s something that I wanted to do.

Lauren Hardy:
So remind me, you are from San Diego?

Kevin Manual:
Yeah. I’ve lived here for five years, I’m from the Bay area but I’ve always been in California my whole life, but I live here in the Pacific beach right now just in a one bedroom apartment with my fiancee just to live a really low-key life and I do all my business out of my apartment here.

Lauren Hardy:
That’s awesome. So we are neighbors. I’m in Orange County. So I definitely know the San Diego market very well. Very competitive market. High priced. Anytime you are in a market where the real estate values are high, let’s say higher than the average median house price in the United States, you’re going to hear that in the seller conversations, you are going to have a harder time convincing the seller to take a discount on their home because they usually are aware of the value of their home. And in California, sellers are very aware of the value of their home.

Kevin Manual:
Yeah, I felt that.

Lauren Hardy:
Yeah, it’s true. And I’m very open and honest about my struggles when I was in California. And every once in a while I’ll get backlash from the one investor that’s killing it here. There’s always like one. I mean, they always say there’s always an exception to the rule. But the majority of the people that I talk to that try to make markets like SoCal, Miami, Seattle, New York, New Jersey, the high price markets, anything you say above $350,000, the majority of people that try to make real estate investing work in those markets struggle.
There’s always an exception. There’s always like, “Oh well, but that one guy or that one company is killing it.” And that’s great. They’ve maybe really honed in their skill. They’ve maybe figured out some kind of niche. That’s great. But for the most part, you don’t have to work as hard in other markets. I’ve proven that. And you have, right? So you went to a different… So you started out in SoCal, you knew enough about investing because you sold coaching programs so you knew enough about the business. You found my coaching program because I specialize in virtual and then you decided to go completely out of state. And what was that like since you’ve tried the business in California and now you’re talking with sellers in a completely different state, what’s it like?

Kevin Manual:
It’s a lot easier to talk to them. I would say they’re a lot nicer. When you’re dealing with people that have a lower average home price, I mean, they’re more or likely, just like you said, they’re more likely to take a discount. There’s a lot of people that are, I’m going to be careful with how I say this, but I would say I’m dealing with a lot of less educated people. People that don’t upkeep their properties as much as other owners I’m talking to here in Southern California. So I would say there’s just a lot more opportunity to talk to motivated sellers and distressed sellers. I mean, it seems like they’re almost a dime a dozen where I’m at.

Lauren Hardy:
You nailed it. There’s just more seller distress. And lower end markets and markets where the price point is lower, there’s going to be more distress. Whereas you come to somewhere like Southern California where the average price here where I’m at in Orange County is $800,000, the sellers keep up their homes. And even if they don’t, they could still put the home on the MLS and somebody will buy all cash to live in it and pay market price.

Kevin Manual:
Yeah. [inaudible 00:07:07] multiple offers in a bidding war on it too.

Lauren Hardy:
Yeah. So there’s no, like we have no competitive advantages in investor here in these types of markets. But in other markets throughout the country, I mean, there’s a ton of really great places to invest throughout the country where people live, there’s jobs, there’s a good quality of life, yeah, with going virtual it’s nice that you’re just not stuck in the market that you live in. But we do get to enjoy living in Southern California which is pretty sweet.

Kevin Manual:
Yeah.

Lauren Hardy:
Yeah. That’s awesome. Okay. So you started with my program in December and you by far, I mean, you’re doing very, very well. Take me back to December and where you are now. What did you do to get where you are now because you’re killing it?

Kevin Manual:
Honestly, I did exactly what you said and I just took action. I would say the first two weeks I had gotten the program, I went through your curriculum, I got everything set up. I found my boots on the ground in the market that I’m in, and I probably started marketing the third week in December. I joined the first week in December. And then we hit the holidays. I came back in January, set some goals with my fiancee for the year. I was like, “Hey, by the end of January I want to have my first contract.” And I think I ended January with five contracts.

Lauren Hardy:
That’s amazing.

Kevin Manual:
[inaudible 00:08:25] that goal out of the water though. But yeah, I’m doing SMS marketing and I just stay consistent with it. I probably work four hours a day, four days a week. I always go golfing one day a week.

Lauren Hardy:
What a life.

Kevin Manual:
Yeah.

Lauren Hardy:
What a life. Now, your total deals of the four that have closed, you’ve mentioned it was about $50,000. So pretty much from, let’s just say, you really started going in January and it’s now beginning of March. So in three months your deal flow was 50,000. Now I get you got to split that with the JV partner, but you’re now getting to… You’ve got some deal volume. You might want to consider creating your own buyers list so you don’t have to split anymore.

Kevin Manual:
Yeah, that’s my next step. So my two next steps is doing that, creating my own buyers list and eventually breaking off and then scaling and trying to replace some of the more like grindy stuff than I’m doing right now and some of the marketing just so I can focus on more growth. But the thing about my JV partner, I don’t think I would have been able to do any of this without him. I mean, he’s been awesome super helpful and just having that market knowledge and someone on the ground to handle the disposition for you, do the property visits, been invaluable. So breaking off from him, it’s going to be, I think it’s going to create a little additional work for myself. So I definitely want to replace some of the stuff I’m doing in my marketing as I’m breaking off from my JV partner as well.

Lauren Hardy:
Yeah, no, that’s a smart move. How did you find your awesome JV partner? Because sometimes people struggle with this.

Kevin Manual:
Just went into Facebook, typed in my market, real estate investment group, posted a… Well, before I post… Actually I didn’t post anything. I went through the history and I searched keywords like joint venture and I just noticed a trend of people being mentioned multiple times. So what I did is I got a list of like five people. And I reached out to them on the Facebook messenger telling them I want a JV partner if they’d like to set up a call. And I think three ended up saying yes. So I had phone interviews and I just really clicked with this guy. He seemed trustworthy and honest and loyal and that’s the thing that was the most important for me when I’m working with someone that I really didn’t know in the very beginning. And it was a great choice. He actually was down in San Diego a few weeks ago for a business meeting and we met up for lunch and I actually got to meet him in person.

Lauren Hardy:
Oh, that’s awesome.

Kevin Manual:
Yeah. So it was pretty cool.

Lauren Hardy:
You know the one thing I like and I’m not going to tell people in your markets since I know we’ve kind of talked about that and not everybody likes sharing what virtual market they chose, but what I love about the market you chose is it was not one of the main ones that everybody defaults to. So the main ones are like the major metros. I would say number one would be Indianapolis. Everybody when they think of going virtual they go, “I think I’m going to invest in Indianapolis.” I don’t know why. It’s just super virtual trendy right now. Oklahoma city was a big one too. Louisville. That’s what I hear people say. I don’t know why it’s always the same market that people-

Kevin Manual:
[crosstalk 00:11:40] first and then I noticed that trend in the program I was like, “Oh. There’s a lot of other students in here going there too.”

Lauren Hardy:
Yeah. And I love that you picked a market that not a lot of people think about. It’s funny because it was actually one I thought about when I was going to go virtual. It was definitely on my list, but not one that everybody thinks about. In fact, I think you were the only student I’d ever heard mention it. And I was laughing because I’m like, it’s funny like nobody mentioned this, but I did think about it. So without saying too much about the market though, let’s talk about its characteristics to show that, “Listen, you don’t have to be in Indianapolis guys. You can be in markets that are less well-known, smaller.” So what was the population in that market?

Kevin Manual:
Yeah. So I would say that’s the only downside to my market is the population. I think it’s, including the Metro area it’s under 500,000. I think it’s somewhere around 350 to 400,000. That’s a little smaller.

Lauren Hardy:
It’s on the smaller side, but you know Nashville was that small when I started Nashville and then it like blew up, but you can still get pretty busy with that population.

Kevin Manual:
Yeah.

Lauren Hardy:
So smaller population, like what’s the average house price there?

Kevin Manual:
It is 150,000.

Lauren Hardy:
150. That’s my sweet spot. That’s my favorite price point.

Kevin Manual:
That’s awesome.

Lauren Hardy:
It’s a good price point because you do get the sellers, there’s more seller distress, usually a seller that owns a home in the lower end price point for like the median of the country, usually money can be an issue at times. So when there are repairs, they tend to defer them and defer maintenance a little bit longer and we buy fixer uppers. So we’re a perfect match for that type of seller. Then a seller that is keeping their property up, remodeled it, was remodeling it every 10 years, I am very honest with sellers like, “I’m not your buyer if you’ve just recently remodeled your home. Here’s a realtor contact. You should probably list it because that’s the best thing for you.”
But yeah. So it’s a perfect price point. The market that you chose, I think is great and it’s just kind of a testament to you don’t have to be in the major metros. You don’t have to go to Indianapolis guys. There’s other places in the United States. I think it would be a really interesting exercise and I haven’t done it, but I probably should, of just getting every county in the United States and then getting all the populations, and then getting all the average house prices and just show how many other areas people can pick. There was that one girl on our coaching call today, she always talks about DuPage. And I was like, “What’s that?” I’m like, DuPage, what is that? I’ve never heard of that place ever.” But people invest there. People do invest there. It’s great.

Kevin Manual:
That’s what I literally did. I pulled up a Google map on my computer and I went into the Midwest and the South, because that’s where you’re going to find those home prices. And I just looked at all the major cities and all the states that I might be interested in and then I did some tricks that you teach in your course to figure out which ones are going to fit for me. And I actually interviewed JV partners in two different markets and I connected with this one guy. So that’s how I landed where I’m at now.

Lauren Hardy:
I love that. And it’s worked out perfectly.

Kevin Manual:
Yeah. One of the things about that too as far as the characteristics that really surprised me, because I always thought as a wholesaler before I actually got into the business, I didn’t really think about wholesaling rental properties I always thought you were wholesaling to flippers. And because I’m in Southern California and people don’t buy rental properties here, not as frequently at least, but out of the nine contracts that I’ve gotten, eight of them have been assigned for buy and hold buyers. One’s been for a flip. So I would say when you’re looking at markets, make sure that that market makes sense for rentals and flips. And I know that’s something you teach as well, but that’s super important.

Lauren Hardy:
Those are my favorite markets are the rental markets to wholesaling. They’re not my favorite to flipping though, because you’re flipping $180,000 house. Like you could have one unforeseen repair that just ate up your profit because it’s just, the margins are too skinny on all ends, but the rental property areas are great to wholesaling. Landlord buyers pay more than a flipper buyer and you get a lot of newbies. This is the funny thing. You get a lot of newbies that try to go virtual in these markets and they don’t know what they’re doing and they offer based on how a flipper would. Like the 70% minus repair rule. And that does not apply in landlord markets. I teach that a lot and I talk about that a lot.
I drill that all in your guys’ heads like, “Roll that roll away, everyone. The 70% minus repair rule does not work in all scenarios. It actually probably only works in about 20% of the scenarios.” So I love that quick tip. I love giving practical advice in every podcast and do feel like you really gave some good ones. So what’s next for you, Kevin?

Kevin Manual:
I don’t know. Well, I, as I told you, I was furloughed employee. I got furloughed twice in 2020, and then at the end of December and I started just to quit my job. So I’m completely on my own now in the business. So I’m really focusing all my time here. So what’s next for me is I’m going to continue doing my marketing and doing my daily routine with what I’m doing now. And I think I’m going to go the VA route, try to get a VA, train them and replace myself a little bit in my SMS marketing and just take more of the appointment phone calls so I could free up my time and start breaking up from my JV partner so I can start securing 100% profits. That’s [inaudible 00:17:34]

Lauren Hardy:
And you know what, you are right. Dispositions is its own animal. And I know it was a big game changer for me when I actually hired somebody to just solely focus on dispo. So you definitely do need to get some things off your plate before you handle acquisitions and dispo at the same time. And then hopefully you get to a point where you can either you just focus on dispo and you hire someone for acquisitions or vice versa like you do acquisitions and hire somebody for dispo.

Kevin Manual:
Yeah. Big time. But honestly, like I said, I can’t stress enough with the JV partner and getting one in the beginning because the relationships they have, the buyers, he’s got a few hedge fund buyers as well. So getting these deals across has been super easy with him. So I know breaking off, like I said, it’s going to be a bitter sweet, but I also think about all the money that I could be making with doing this 100%. So I’m excited for that next step in my business.

Lauren Hardy:
But you guys can still, you can always keep him and if he brings you a deal and you end up being able to make just as much with his buyer, you can still do deals. I always left it very open with my JV partners and to this day they still bring buyers to us. So it might not be like goodbye forever. You definitely will work with each other or maybe you’ll even get where you’re moving their deals because you’ll build your buyer’s list so big. So I know I gave a bunch of tips on that on how to build a monster buyers list. Well, I’m excited for you. I’m really happy that you joined the program and you found so much success and I’m glad you took that leap of faith of getting out of your local market that’s super high priced and stressful and just more work than it needs to be. So I’m proud of you.
And you guys, if you’re listening to this and you are looking for a coaching program on virtual, I’m the girl. Check out www.virtualinvestingmastery.com. I am the virtual coach for Wholesaling Inc. Apply there and somebody will reach back out to you. Kevin, thank you so much for coming on today and giving some quick tips and I’m really looking forward to seeing where you are in six months because already where you are in three is crazy.

Kevin Manual:
Yeah. Crazy, it’s blown my mind too. So can’t thank you enough, Lauren, and yeah I appreciate everything you’ve done.

Lauren Hardy:
Thank you and thanks for listening guys til next time.

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