Lauren Hardy is joined by Rob Farrell and Cameron Martin, two 21-year-olds staking their claim in the real estate industry. Today we get to hear from young entrepreneurs in the wholesaling world that are doing things differently. Rob and Cameron work together to close deals across America. Check out this full episode to see what these guys have learned from Lauren and her program.
Handling Price Reduction On $31k Deals For 21-Year-Olds With Rob Farrell And Cameron Martin
Lauren Hardy is joined by Rob Farrell and Cameron Martin, two 21-year-olds staking their claim in the real estate industry. Today we get to hear from young entrepreneurs in the wholesaling world that are doing things differently. Rob and Cameron work…
We’ve got Rob Farrell and Cameron Martin on the show. We’ve got two virtual investing mastery students, and we’re going to talk about their journey and getting started. The amazing thing about these two guys is they are college students. I feel very old now. How old are you, folks?
We just turned 21 this 2022, both of us.
You are babies and already far ahead in your entrepreneurial journey. That’s amazing. What made you get into real estate at such a young age?
This is Cameron. Thank you for having us on, Lauren. I appreciate it. I got started in August. The end of August 2020 is when I started to dive into educating myself about how this whole business works. I knew I always wanted to be in real estate. I didn’t know what I wanted to do in real estate but going through social media one day. I think it was on TikTok. I’ve found someone who was talking about wholesaling.
To me, it almost sounded not real. I wanted to research a little bit more, which is what I did, and I’m like, “This sounds like something that I could do at a young age.” It is because you’re essentially not using your own money to buy any properties. I did that when I was at school. I started at the end of August 2020 and did it all throughout the fall semester. I was like, “I want to do this.” It wasn’t until the end of January 2021 that I started to take actual action on it. I started out cold calling by myself.
This is just by myself without Rob at first. Probably by February or March 2021, Me and Rob started communicating. Rob got interested in wholesaling as well. We chose the market of Tampa Bay, Florida, at first, which now, we do all of Florida. We joined forces in the middle of May to the end of May 2021 when we got out of school, and the summer started in 2021. Tthat’s how we got started with each other.
I started doing eCommerce here at Providence College. This was probably towards the latter half of my freshman. It wasn’t working out. I tried a lot of things. I bought in a small group or whatever it was but those things weren’t working out. Cam was telling me about what he did. At first, I had no idea what wholesaling real estate was. Obviously, by the first couple of clicks on YouTube, you can pretty much easily figure out what wholesaling is or the basic definition.
I give credit to Cam because I would’ve never known about wholesaling if it wasn’t for him. At the end of my freshman year, we agreed to join teams together and go into our summer all in. We were spending thousands of dollars on marketing. We’ll get into more details in a little bit. We had a lot of struggles where we were losing money and we had contracts fail. We continued to push until the end of summer when we weren’t even with each other. We were going back to school after the summer. That’s when our first deal hit. That deal saved us because we ran out of money.
You guys are friends before this. Cam came in and was like, “I’m interested in this wholesaling thing. You’re going to eCommerce stocks. What’s that about?” You decided to partner together. It sounds like your first go at it was using YouTube University to put the pieces together. In that process, what did you do wrong? Did you know now what you did wrong which was causing you to burn through money? Were there some mistakes made or anything that you can identify?
I don’t know if there’s anything in particular. I think it was that we didn’t have a lot of money at first, because we were still young at that time. We’re only 21 now but at that time, we were 20. I also work a pizza delivery job, so it’s nothing special. I’m not making a whole lot of money doing that. It was more of not having that much money to start with, and we’re going a couple of months already in between getting our first deal locked up under contract and our first closing. We started to not even be able to market that much anymore because we ran out of funds.
When I first got started, I didn’t have any money and I put everything on my credit card. Don’t do that. It’s not the best idea but no joke. I got up to $11,000 in credit card debt but it was fine. We knew we were going to make a lot of money, so I wasn’t that concerned. I had one flip going, and then I had one under contract by that time. I had a pipeline where I was like, “This debt will be paid. It’s going to be fine,” but it was a nerve-wracking few months having that.
You have to educate yourself as much as possible. Go on YouTube and watch as many videos as you can. As soon as you get the basics down, take massive action.
I also delivered pizza back then. At that time, when we had double digits into our bank accounts, and I think Cam would say the same thing, we would go and deliver pizza one night after doing wholesaling. We would spend it on marketing the next day. It was continuous. I had less than $100 in my bank account. We’ve recalled old lists because we couldn’t pull new lists. We couldn’t skip trace because we had nothing.
It’s amazing that you would go back to your old list. What’s so funny is there is going to be a point where you’re already getting towards there and you’re going to forget these moments. The efficiencies of what you are doing, you’re going to get past that. You’re going to start blowing through money. Entrepreneurs and business owners throw money at marketing campaigns, not thinking.
Whereas, when you’re at this level you’re in, you think about every diner spending. I love that you reuse the same list like, “I’m lazy. I’d go pull another one.” Not even think twice about it. Can I tell you don’t lose that because as you make more money, you might start forgetting this feeling and there’s going to be a time where you go, “I’m wasting money. Why did I do that?” That’s cool. Where did your first deal come from?
The first deal was in SpringHill, Florida. As we said before, we started in May 2021 together. We were working out at Rob’s garage. We’re going to do that again in the summer. As I said earlier, we started out cold calling and we switched to SMS, text blasting because we’re like, “Maybe we can reach more people quicker if you do text blessing.” We use BatchLeads for that. Within the first two weeks of us starting out working together, we got our first property on a contract, which didn’t end up closing.
That was the very end of May or maybe the first week of June 2021. It eventually fell through. After we found a buyer for this, we were going to make $5,000, and this was supposed to be our first deal. The seller ended up asking after we found a buyer for $10,000 upfront. We were like, “What do we do?” Still, to this day, I don’t even know what I would do if a seller asked for $10,000 upfront. Not only that. We couldn’t do that. We tried to figure out a way where we could use the buyer’s funds for that but that wasn’t working out. They also had tenants that they didn’t tell us about beforehand. They were not paying any rent and they were living with them. Apparently, if the eviction process was ever to go to court, the court favors tenants a lot.
Cam, do you remember because they were receiving mail at that property? Legally, in Florida, you need to be evicted, even if you’re not on any lease or anything, you need to. It’s crazy but you need to be legally evicted off that property. That buyer had a big problem with that. That was one of the many problems, along with an unpermitted front deck or something like that. There were a good amount of problems with this first property.
That one didn’t go through. That was a pretty low point when you started out because we were like, “We’re almost there.” We ended up moving on. Our first deal that closed, we got that original under contract July 14th, 2021. That’s a big story because this seller was all over the place. This was also in Spring Hill. These first two were in Spring Hill, Florida. We originally got this first deal under contract at $240,000, and this lady was a widow. She was disabled. She had a stroke earlier in 2021. It was a nice house if it was kept up, but it was complete crap. She had ten cats. She didn’t take care of the house at all.
At the same time, I understood it because she had some issues with herself and felt bad, but she couldn’t do anything for herself. It was tough because we’re virtual. We weren’t there in person. You can’t go to the house and try to figure out a way we can help her in that way. We had a walkthrough of the property. Our investors went there to go look around then we found out that the $240,000 mark was a little bit too high. We went back to the buyers saying they could not pay for it.
We renegotiated for the first time down to $235,000 and it still wasn’t working, then we went back down to $230,000. We had a guy that came in and said he could pay $235,000. That would have netted us 5,000. He eventually had problems with his lenders because he was using hard money or whatever that was.
He had issues with that, so he eventually had to pull out, and he forfeited his EMD to us. That was $5,000 as well. We were like, “We wanted the deal to close,” but we got $5,000 from it. This is where we renegotiated for the final time. At this point, we didn’t care if the seller was willing to go down again because we had already made some money from this. At least we had more money in the bank account to market, especially, but then this final call that Rob made to the seller. If you want to take it from here, Rob. We went back down to $200,000.
We were saying, “Let’s do one last call. It’s not going to hurt, and if she says absolutely not. We’ll follow up even maybe in a few months.” I believe we were at $230,000 at that time. We got her on the phone said, “Our buyer is lender. They don’t think this property is worth what it’s under contract for. I’m just going to give you the dead flat, purchase price of what we can pay and we know this will close in whatever it may be in 2 to 3 weeks.”
I gave her the number of $200,000 and we went through the calculations of what she walked away with after paying off her mortgage, and she agreed to it. After assigning the contract to an end buyer for $226,000, we made the $26,000 with our second buyer. On top of that $5,000 EMD forfeit, we made $31,000 off this property.
Sometimes, it does take the seller some time to come to terms with, “This price reduction is my only option here with the property and the condition that it’s in.” It’s great that you were honest with the seller. You were saying you’re selling it to this other buyer and you’re communicating with them like what the story is. That’s awesome. That ended up being a good win. You helped the seller in a situation where it sounded like she did need that help. It’s a pretty win-win for you guys. Have you done any deals past that? What do you get going on next?
We’ve done three more after that. I’d say the most successful time that we’ve had so far is probably around November 2021 to this past January 2022. This has been the most successful in time periods so far. That first deal closed on August 30th, 2021. July 14th to August 30th was the amount of time it took, but shortly after that, that’s right when school started again for us. We’re like, “We don’t have as much time to do text blasting, or if we were to cold call again, we don’t have much time because of our classes and stuff like that.”
We decided to hire a cold caller. We use The Call Genius, which is in the Philippines. We had that cold collar for a few months, and we got our next property under contract a couple of weeks after our first closing. That was in Hudson but the seller was going through the eviction process with his tenant that was inside. The process for that took a while and we ended up closing on that on December 17th.
It was the end of September when we got it under contract then all the way to December 17th, 2021. We ended up making $13,500 off of that. We ended up closing our third one on the same day, which was a piece of land in Jacksonville for $2,500. That was 2 in 1 day. It was a pretty big deal for us. Our fourth one was in Tampa, which closed on January 7th, 2022, and we made $9,000 off of that. In the first one, there were a bunch of issues that we had to figure out throughout the whole process, but our last three have been pretty smooth.
It’s unfortunate that your first one was that difficult because they’re not always like that.
It’s like saying a prayer and a curse at the same time because we’re so thankful that we learned so many steps on that first one. We left out a step. We had a file memorandum because another investor almost came along and tried to scare us out of the deal. We learned how to file memorandums. We use addendums to adjust the purchase price. It taught us a lot. We looked back and we’re like, “We wouldn’t have learned half of that information if we didn’t have that deal.”
That’s how you learn. You learn by doing with wholesaling. I always say there are ten different scenarios that will keep coming up over and over again. Now, you’ve knocked out maybe three of those scenarios in that deal, so you’re good for the next time it comes up. What made you decide to go virtual in the first place? I didn’t ask that question.
Everybody knows, throughout the country, it’s like Southern California, where you are in New York City. You could put Massachusetts up there. It is a very expensive markets. At first, when I started getting into wholesaling, and I was like, “Let me do Massachusetts and lots of expensive here.” We live pretty close to the New Hampshire border. The prices there are cheaper than in Massachusetts. Although they’re getting up there, the population isn’t there in New Hampshire compared to other places. My girlfriend goes to the University of Tampa. I go down there to visit often. I joined a bunch of Facebook groups for wholesaling. I’m scrolling through all of them, and I saw a lot of like, “Tampa must be a pretty good market,” and I’m down there pretty decent amounts. I might as well choose that. That’s pretty much how we decided to go virtual.
That’s interesting. I went virtual for the same reason. My home market is way expensive, Orange County, California if any of you don’t know about my story. It’s a similar issue. When your hometown or your backyard is too expensive, it gets difficult to find distressed inventory because there’s no one in distress around you when the average house price is $1 million. That’s why I personally went virtual and it sounds like we were in a very similar situation. During this journey, when did you get formal coaching with Wholesaling Inc with me specifically? What month was that?
January 2022. In our latest deal, we ended up closing when we were in your program.
The only way to get over it and get better is simply by doing it.
You knocked out and went through it. You did a lot on your own through YouTube University. Now, have you gotten through my whole course program?
Is there anything that you were able to take away from it that might have helped where you’re like, “I wish I knew that six months ago?”
The biggest takeaway so far was from the very first coaching call that was scheduled when we first joined the course. We joined it live and I was able to ask you a question over the coaching call. It had to do with our most deal that closed. It was because there were tenants that were living inside the house. I was telling you, I was like, “We told these tenants that we would help them try to find a new place to go. How do we do this? What’s the best way to go about this?” You were like, “Don’t do that. That’s not your job. Do it with a tenant in place. Tell the buyers about it.” That’s what we did and it ended up closing just fine.
I wish you were in my program for your first deal where you had all the craziness because I think you could have closed that. All this stuff you told me, I’m like, “That would have stopped me.” None of that would have stopped me because I have the tools. I could have told you what to do about the tenant, the shady seller, and all those things. If you understand real estate law, I could have helped you with that. It’s unfortunate. I was going to suggest calling that seller and seeing if you still own that house.
I wish, too. It is what it is. We want learned stuff from that deal.
I think with coaching, you already did a lot of it on your own, but now, you have someone to bounce questions off of or ideas like, “Should I even be doing this? Was this my best use of time?” That’s how I’ve been able to help, so that’s cool. Do you have any advice for anyone who’s reading and interested in getting started but maybe doesn’t even know where to start?
I’m sure many people have heard this what I’m about to say before, but the way that I started YouTube University, you got to educate yourself as much as possible. Go on YouTube and watch as many videos as you can from listening to the experts like yourself. As soon as you get the basics down, take massive action. You have to. It’s all up to you. You just have to do the work. Learn the basics. Once you start taking action, you’ll learn so much more because, honestly, I feel like that’s where the real education is.
Rob, what is your advice for someone getting started? My follow-up question will be after that.
I completely agree with Cam. YouTube University is free coaching. You can get any information on YouTube. After that, I would get a partner because not only do you have 2 brains working at 1 thing but you also can cut expenses in half. If I was working on this by myself or if Cam was working on this by himself, we would have run out of money. It was just the marketing and the software that we were using was expensive. When you have two people and you can divide the expenses in half, which would mean dividing profits in half, it still works out to the point where you both are gaining knowledge but you’re profiting as much.
From getting started, how do you get the courage to take action? I have a lot of people that get stuck in analysis paralysis. You guys are so young and have a ton of courage. How did you do that?
We did cold call a lot of people, especially for sale by owners on Zillow. We would get cussed out. We would get screamed at for these low-ball offers. To me and Cam, it’s noise. Once you can realize who you’re talking to on the phone, it doesn’t matter. It won’t matter after the phone call hangs up, but you’ll be able to jump on the phone with anybody. It’s given me the confidence to hop on the phone, give an offer and talk through our qualifications with anybody.
I wish that I had that in my head sometimes in everything, like when you deal with a nasty client customer or something, it’s just noise. That’s awesome advice.
To add to that, I also feel if you do get cussed out, which is inevitable and it’s going to happen. Even to this day, I’ll still get nervous before a follow-up call, but when the person picks up and answers, I’m too focused on the call that I don’t even think about being nervous anymore. I let it flow. The only way to get over it and get better is simply by doing it. You got to do it.
You have to do it enough and I think there’s a certain point where you dole out that fight or flight feeling. You get it a lot at first but then the more you get, you practice. It starts calming down in your body. It doesn’t react in that fight or flight way. You’ve got to dole it out by a lot of repetition. That’s what I found that helps me. Naturally, my personality is very much a people pleaser. There are different personalities out there. If you’re a people pleaser, phone sales can be difficult because you’re thinking, “I’m sorry to bother you. I know this is a low-ball offer.” That’s all that you’re thinking in your head. You’re already apologizing.
I had to get past that, and it wasn’t easy. Congratulations to you for all your success. You’re so young so you’ve got so much more time to build your businesses. I wish I got started at 21. I got started at 24 but I could have gotten started earlier. That’s awesome, guys. Thank you so much for joining the program and inspiring everybody. If somebody wanted to reach out to you guys, are you guys on Instagram?
My personal Instagram is @Rob_Farrell_.
Thank you so much for reading. If you want to learn how to virtually wholesale like Cam and Rob, make sure you check out VirtualInvestingMastery.com, where I can help you do that. Make sure you share this episode with anyone that you think it might benefit. Guys, thank you so much for coming to the show.
Thank you for having us.
Appreciate it, Lauren. Thank you for having us.
- Rob Farrell – Instagram
- Cameron Martin – Instagram
- The Call Genius
- @CR_CapitalInvestments – Instagram
- Be sure to join the Wholesaling Inc Facebook group
About Lauren Hardy
Lauren Hardy is 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.