The saturation of wholesaling activities and competition in the market she is in is why Lauren Hardy chose to become a virtual wholesaler.
In this episode, Lauren talks about why virtual wholesaling is one of the best decisions she’s ever made! She talks about what virtual wholesaling is, how virtual wholesaling differs from traditional wholesaling, and when you will know the right time to jump into virtual. Tune in to find out why virtual wholesaling can be one of the best business decisions you make this year!
- Why you and your business can be in any market in the country with virtual wholesaling.
- The secret to effectively buying and selling out of state properties.
- How to know if Virtual Wholesaling is right for your business.
- Why you should go virtual if your market has too much competition.
- How to avoid the 3 biggest mistakes most virtual wholesalers make when first starting out
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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What’s up, rhinos? This is Lauren Hardy, and you are listening to the Wholesaling Inc. Podcast. Today, I want to talk about a subject that is very near and dear to my heart and some people would say I’m an expert at, and that is virtual wholesaling. The reason I wanted to get into virtual wholesaling is because I’ve noticed around the country and especially in the major metros, it is getting insanely saturated with wholesale activity, with competition. I’m hearing it everywhere. My market is so competitive. This is mostly prevalent in the major metros. So, I thought here’s the deal? Why don’t I talk about what virtual wholesaling is and how virtual wholesaling changed my life because I was in that situation where I was in a very, very competitive market, and I had to go to a less competitive market. It wasn’t easy, but it was absolutely the best decision I ever made.
If you are in that situation where you’re in a very competitive market and you’re just feeling like, gosh, there’s wholesalers everywhere, and sellers are hearing or telling you that they are getting these kind of text messages or calls all the time, and you’re just starting to feel like your backyard is not as friendly anymore and you want to move on, I want to talk to you a little bit about the idea of virtual wholesaling because it’s honestly one of the best things I have ever done. So, let’s talk about what I’m going to share with you in this podcast episode. I’m going to go into what wholesaling is, in case you are super, super green, which is awesome. It’s cool. We welcome you here at Wholesaling Inc. I also want to go into, what does it mean when you go into a virtual market? What is virtual wholesaling? I want to talk to you about when you should go virtual. When does it make sense? I’m going to share that with you in this episode.
What if I told you that you don’t have to live in the market that you invest in? What if I told you that you can invest in rentals out of state or you can wholesale properties out of state? With my virtual wholesaling strategies, you can live anywhere and invest where you want. Okay, so let’s get into it. What is wholesaling? So, for those who have maybe not listened to as many podcasts or are super new to the concept of wholesaling, wholesaling is just a jargon term, okay? So, if you said to an attorney, “I want to be a wholesaler,” they might actually look at you with a blank stare and have no idea what you’re talking about. It’s actual jargon.
What you’re really talking about is contract assignments, and contract assignments are prevalent in every industry. It’s not just real estate. What you are doing when you assign your contract is you are assigning your rights and your benefits to that contract to somebody else, and typically, you’re doing it for a fee. In real estate, we are essentially assigning our purchase agreement to someone else. So, we are giving somebody else the rights and benefits to purchase the property. In return, we get a fee. Here at Wholesaling Inc., we cover these topics all day long. We love wholesaling. I absolutely love wholesaling.
So, what is virtual wholesaling? Well, it’s that exact same thing, but it’s wholesaling anywhere that isn’t your backyard. So, let me give you some examples. It doesn’t just have to be out of state. When I really think about when I first went virtual, it wasn’t when I went out of state even though I didn’t really have that in my mind. I didn’t think I was virtual, but when I lived in Orange County, I had such a wide net because deals were so hard to come by, so I had to take a deal wherever I could get it. If that meant Palm Springs or if that meant way Northern LA where it would take me two hours to get there, I had to take it. So, a lot of the work that I did was virtual. I was managing these properties. These were flip houses. I was doing it, utilizing boots on ground there over the phone, using the internet. I was comping these homes out without seeing them. I was giving offers without seeing the properties, so I was doing a lot of virtual work.
So, if you live, say in a major metro but you are aware that there is a county over, maybe it takes an hour or two hours away, but you can’t really wrap your head around how you’re going to make that business, this business work in that county, I’m going to tell you that you absolutely can. You go virtual. You use some of the strategies that I coach in my coaching program here with Wholesaling Inc., Which I’ll go into later.
Another example, which is more obvious, is just going out of state. So, I think more commonly, you hear about people holding rentals out of state. I think that’s an amazing strategy, so if you’re in California, having a rental here makes absolutely no sense because the returns are terrible, and it’s because the purchase price of the homes here are very, very expensive, and the rents are lower in compared to the purchase price, but that is not the case everywhere in the country. Does that mean that because I live in California, I can’t invest? I can’t hold rentals? Absolutely not. It means that I just have to go virtual. I have to do this out of state.
So, I’ve also figured out that you can wholesale virtual. You can flip virtually. I’ve built houses, ground up construction virtually. I’ve basically done everything that you can do in your own backyard. I’ve just did it out of state, and I was pushed there because I had to, but I know a lot of people that also do it for reasons of expansion. So, that leads me to my next topic. Why do some people go virtual?
So, I want you to listen in, and see if you resonate with these ideas because I hear this a lot, and I’m telling you, if you have any of these issues, I know I can help you. So, the first one is very obvious. It’s the market is getting too competitive. This is very prevalent right now especially in the major metros, but I’m going to tell you that I’ve had students that were in major metros, okay, like the popular wholesaler trendy areas. Indianapolis, Phoenix, Atlanta, Oklahoma City, okay? They were in these very trendy metros where you see a lot of wholesalers that had done very well at one point, but what happened was they noticed their wholesale fees are starting to get slimmer and slimmer. They’re noticing that they’re just seeing wholesalers pop up everywhere. Sellers are giving them responses like, “Gosh, I get these texts all the time, or I get these postcards all the time from you, people. It’s like everybody wants my house.”
Well, unfortunately, it seems like the market you’re in is maybe a little bit too saturated if you feel like you’ve heard these things or you felt this way, but I’ve had students in my program pick up and go a couple of counties over where it’s still a very viable real estate environment, but it’s not as saturated with wholesalers. They had a ton of success. They saw that their fees were back up. They don’t feel like the market is … it is as competitive. So, if you resonate with that, you have options. You don’t have to stay in a competitive market. You can pick up and leave and find success somewhere else.
For me, that’s exactly what I did. I was in Southern California. When I first got into it, it was not as competitive. As time went on, it got more competitive, so I picked up and left, and that was the best decision I’ve ever made. Another reason people go virtual is that real estate doesn’t have much value in your town. So, do you live in a more rural area where real estate doesn’t hold much value, where properties are very inexpensive? Maybe you live just anywhere … Maybe there’s a lot of farm land, tons of land. If you live in that kind of area, yeah, you’re going to have a hard time finding property that has value. So, it makes sense that you might want to go to the next neighboring area that has better property values, stronger property values, or maybe you want to go to a completely different state. That’s up to you. It really doesn’t make any different at this point, because once you’re virtual, by the way, you’re virtual. It doesn’t make any difference.
So, that’s another common thing that comes up that I hear. The other reason you might want to go virtual is just that property is too expensive, and the returns are bad. So, this comes more into play when you really want to grow your rental portfolio one day. So, say you are using wholesaling as your gateway to being a landlord and having cash flowing properties, but you look around and you’re like, “None of these property is cash flow. How am I ever going to make this work here?” Well, pick up and go somewhere else. That’s what I did. The pond that I play in, the area that I invest in has amazing rental opportunities. So, again, I’m so glad that I didn’t have that limiting belief that I was stuck in my backyard.
Another reason, and this one’s my favorite because it’s much more positive, is expansion. So, say you’re killing it. You’re doing great. You love your backyard. Your backyard’s awesome, but you want to expand. You want to make more money. You want to have a bigger footprint. Well, virtual wholesaling is going to take you there, but if you don’t know what you’re doing, it could get a little tough, and it can actually take your other business down that you’re doing very well. So, it’s very, very common, I see this happen, where you try to go virtual and then you notice that it takes all your energy and attention. Then, you start neglecting the area that you were actually doing very well in. So, when you are trying to expand, it’s very important that you are strategic about it, that you get some sort of coaching or mentoring to really help you cut that learning curve.
The other reason, and this is way more fun … I wish I was in this situation. This is not me, but this is some people. It’s just the idea where you can live anywhere. You can travel. You can live anywhere and invest where you want. So, I have students in India, in Spain. I have a lot of students in the military. If you are traveling a lot or you have to move around a lot because of another occupation, this is the answer, okay? Going virtual is the answer. It’s time for me to storytell because I definitely had a journey in going virtual, and I kind of fell into a lot of those topics other than just traveling for fun because I am a mom. I’ve got two kids. I’m definitely very stationary. I’ve got to stay in SoCal for a very, very long time. I’ve got young kids aged seven and 10, so I’m not going anywhere, but I have absolutely taken my business virtual for all the other reasons, so I wanted to give you my story about it.
The first thing was I started in Southern California. It wasn’t that hard. It was 2011, so there was still a lot of seller distress. It was pretty easy to get a flip project to work on at that time, but California got way expensive. It got very competitive. A lot of people got into the flipping game. A lot of wholesalers started coming in. It started costing a lot in marketing to get that one deal. Then, that one deal was much less profitable.
So, I was getting really stressed out because it started to feel like the pond was drying up, so I went virtual. I went to Nashville, Tennessee. Then, I went to Oklahoma City. The next time after that, I chose to go virtual again, was to expand. There was an area nearby. Oklahoma City is about an hour and a half away, another major metro that had very similar numbers. Then, I thought, “Well, gosh, if I can make this area work, why can’t I make the other area and make more money and have more deal opportunity?” So, I expanded, and it worked out very, very well for me.
Now, let’s fast forward a few years. Something really interesting is going on in my market. There’s a couple things. First thing is in Oklahoma, there’s some legislation that is going to make it difficult for wholesalers to market the properties that they have under contract. I don’t want to get too into it because I’m not giving legal advice or anything on this podcast, but it’s enough to make me think that I should probably diversify a little bit in my area and not have all my eggs in one state’s basket, so to speak.
So, another reason with that area was it was getting very competitive. So, back to major metro that’s very wholesaler trendy, Oklahoma City is a very wholesaler trendy area. Anybody who’s listening to this from Oklahoma, I’m sure you can agree, right? Lots of wholesalers have gotten into the market since I’ve been there. I’ve noticed that the wholesale fees have dropped a bit. So, I picked up, and I’m still in Oklahoma so don’t … I’m not saying I left, but I expanded to a completely different state that’s completely different from Oklahoma, something very, very new for me. It was, again, one of the best decisions I ever made because this state, this area, which I’m not going to announce but it’s much less competitive. It’s not as well known. It’s not as wholesaler trendy, I like to say. It’s awesome. We ended up just in the first, like six weeks of us marketing there, tying down around $30,000 in wholesale fees just in the first six weeks. We pulled one list, and we didn’t even work it that hard.
So, that told me with … Not even knowing the market very well, we kind of just dove in and utilized the techniques that I teach in my coaching program and the techniques that I’ve learned from nine years of doing this business virtually here. It was very easy for me to just pop into another market and see how it was and see how it felt. I fell in love. I love this market. I’m so excited, so it really was, again, best decision ever. Now, I have … I’m currently in four different markets right now. It’s great that I have been able to expand that way. Honestly, going virtual was my only option. Had I not gone virtual, I wouldn’t be in this business. I wouldn’t be talking on this podcast. I’d probably be working some corporate full-time job and not being very happy about it, but it’s really led me to some amazing opportunities.
I was able to develop houses in Nashville. Nashville’s going through this huge development boom, and I was able to participate in that. If I hear that there’s an opportunity, like a Nashville situation, for example, I’m able to participate in that opportunity. So, it’s been really, really good. If this is resonating with you at all, I really want to urge you, do not wait, okay? Don’t wait. Don’t sit around and think that maybe your market’s going to get any better because we really don’t know if it is. The longer you’re waiting, the more money you’re leaving sitting on the table. So, if you do feel like anything struck a nerve in this episode, I want you to just schedule a call with my team. They can tell you all about the coaching program and what going virtual really will mean for you.
So, check out www.virtualinvestingmastery.com. We’ve been around for a year now. I have a ton of student success stories if you scroll down to the bottom of the page. Thank you guys so much for listening, and I really hope that this maybe answered some questions. I hope that I was able to resonate and give you some stories that maybe you relate to. So, thank you guys so much. Again, the link is www.virtualinvestingmastery.com. Until next time, thanks for listening.