Posted on: June 07, 2021
WI 704 | Small Markets

 

Are you finding it hard to find good wholesale deals? Maybe you’re looking for deals at the wrong places. When you’re starting, it’s always better to look at the smaller, less populated places than the metropolitan areas. Starting in the outskirts of the city is David Trevino’s strategy. David is one of Lauren Hardy’s Virtual Investing Mastery (VIM) students who recently landed three big deals virtually in spite of doing wholesaling as a side hustle. He lives by the statement: making something work no matter what. Pairing his strategy to pick an area not heard of by most wholesalers with a positive mindset has led to David’s success.

Today, Lauren and David talk about his recent success from having zero to three big deals. Along that line, he also shares the details of the area he picked to make deals in and what is in the outskirts of suburbs that got him into it.

If you are aiming to be successful in getting deals virtually and strategically like David, then this episode is a big plus for your business.

How To Make More Money By Going Into Smaller Markets With David Trevino

In today’s episode, Lauren Hardy will be joined by one of her Virtual Investing Mastery (VIM) students, David Trevino. He recently landed three big deals virtually in spite of doing wholesaling as a side hustle.

Episode Transcription

We have David Trevino in the house. He is one of my virtual investing mastery students. We are going to talk about his success. He went from 0 to 3 deals. These deals had big fees on them. My favorite thing about David’s strategy and is that he picked an area that I have never heard of. We are going to talk about the area he picked, what type of area it was and why you should probably stop going to the major metros and start looking at those outskirt suburbs. David, welcome to the show.

Laura, nice to finally be on the show. It’s an honor. Thank you.

Had you read this blog before?

I have been reading it since 2019. I have been a big fan of Wholesaling Inc for a while. To finally be on the show, I will not have believed a couple of years ago, to be honest.

Did you start in 2019 or did you just start hearing about wholesaling in 2019?

I started hearing about Wholesaling in 2019. Tom Crow was on the show. I knew I wanted to be a real estate investor. I was looking for rentals. I went to YouTube University just like everyone else. I was looking at everything like how to find the right property manager and contractors, etc. It all boiled down to how do you find the deal? As an investor, that’s what we do. We find good deals. I’ve got nitty-gritty and wanted to dial in on how to find deals. That’s what I did. I took some action from that show and I build on it step by step. It’s a lot of trial and error. It’s how I’ve got into it.

What was your first real estate deal in 2019?

In 2019, I was dabbling a little bit. I sent out 600 postcards. I sent it out without thinking so much. I followed the action and I’ve got voicemails. I was like, “This works but what do I do now?” I had to go back and get more into it. How do you talk to a seller? How do you meet them? All of that? I said, “I have a basic understanding of how to talk to sellers. Let’s give it another shot.” I sent out more postcards and got more sellers. I didn’t get much traction because I wasn’t mailing as much. I wasn’t going big with my marketing. In 2020, I said, “I’m going to take this a little more serious.” Leads are coming in where I’m not even interested in the homes that they have but they are actual leads. “Why don’t I build a buyer’s list and go forward with that?”

In 2020, I tried to do the whole thing. If I find a deal I like, I pick it out for myself but again, I’m pretty sure I was doing something wrong. I was getting two calls a week and putting out thousands of postcards. I said, “I know I’m doing something wrong and I need guidance.” It was a little discouraging because I was spending a lot of money. Time was going by. I was saying, “I’m a real estate investor but I haven’t done a deal.” I was apparently, self-judging myself a little.

They call that imposter syndrome.

I felt a little discouraged and I fault myself because there was a month and a half where I wasn’t doing it. I wasn’t marketing. I wasn’t doing anything. I found myself giving up. It was right towards the end of the year. You guys were having a promotional discount for the program and after that, the price was going to go up and I said, “It’s now or whenever. I need to make this work. Otherwise, I’m going to give up.”

It sounds like from 2019 to the end of 2020, maybe a year and a half, you were using YouTube University to put the pieces together and you took action, which is awesome. A lot of people don’t even go to that step. They just watch YouTube University for years. You are mailing postcards for 1.5 years. You are getting leads but you don’t know what you are doing at that point. You are not closing any deals and you can’t figure out why. You finally bit the bullet and got some mentorship, which I imagined was scary.

Adopt the attitude where you’re going to make things work, no matter what.

I made a phone call with Wholesaling Inc at the beginning of 2020 and I then pulled the trigger. I was getting friends and family, not because they don’t want you to succeed but because they feel like they are looking out for you. They said, “You could do it. You don’t need to pay anyone.” I took that, and then I had to say, “Screw it. I don’t care. I’m going to go forward. I need mentorship, get out of my own way and make this work.” There’s this part at the beginning of your course where you say, “You’ve got to adopt the attitude where you are going to make those work no matter what.” It was very quick but that stuck with me and it’s true. “I had to make this work no matter what.” That is what I’m taking. I didn’t notice I was taking that attitude but you had to expand on that.

A lot of people are in the exact same situation that you were in back in December 2020, where you were afraid to spend money on a coaching program. You were wasting money on marketing because you didn’t know what you were doing. You justified to yourself to spend money on the marketing and the action items like sending postcards out but you were scared to bite the bullet in the mentoring that would have made those marketing dollars work for you. Do you have an idea of how much you spent in marketing in 2019 and 2020 that you can say you almost threw in the trash?

It’s a few thousand dollars. I don’t have an exact number but it’s in the ballpark between $3,000 and $4,000 maybe.

It is the cost of a lot of mentors. A lot of people don’t understand the value of mentorship and you touched on your family doubting you. Anytime I have ever gotten doubt like that, it’s from somebody who is not an entrepreneur. I want this to sink in. Anyone who is telling you that you should not invest in a coaching program or mentorship but instead, try to figure it out on your own using YouTube, ask yourself, “What are they doing for a living?” If they are not an entrepreneur or a successful entrepreneur, that’s a good indication that they do not know what they are talking about and are giving you poor advice. I buy into mentorship programs to this day. I know nothing about TV ads and running television commercials.

I wanted to start utilizing TV commercials for my house buying company. I found a mentor and I wrote that check gladly. I was so excited. Anytime I buy a mentorship, I get this high. I start glowing for the rest of the day. I get so excited because I know that that check I wrote, I’m probably going to 20X my return on that. I know I am. Here’s the thing about writing that check and mentorship and the difference between dated and someone else maybe who doesn’t have success with a mentorship program. It’s that David took massive action and did every single thing that I said to do, everything to a tee. Other people buy the coaching program or mentorship and they don’t follow the directions. They still do what they heard on YouTube University for some reason and they try to apply it to the coaching program they’ve got. Those are usually the people that struggle at first.

Hopefully, they have a good enough mentor to smack them out of it a little bit, which you have seen me do a lot. I do a lot of smackdowns. I remember when you called me initially and talked about what market you were thinking about getting into. What I was so excited about was it was a market that I have never heard of before. I don’t know if you are not comfortable sharing exact markets. I know a lot of people don’t want to do that on the show. That’s totally fine but you can give us an idea of this type of market and what it looks like. Tell us a little bit about the market that you chose.

I’m out of Northwest Indiana. Most markets that people go into are the major Metro, like an Indianapolis or some town or city where people recognize. The market that I’m in is mostly a county with suburb-like towns. They are about 1 hour to 1.5 hours outside of Chicago. It’s not exactly Chicago but its own market that benefits from a big city but it’s mostly suburbs and I love it.

What’s the population size in your territory, do you know?

Yeah. It’s about 300,000 people give or take.

Do you know the average house price?

WI 704 | Small Markets

Small Markets: Anyone who tells you that you shouldn’t invest in a coaching program but figure it out on your own don’t know what they’re talking about.

 

It’s $173,000.

That’s my sweet spot right there. My favorite thing was I had never heard of it before but you knew enough. You knew that a lot of people live there but then they go commute to Chicago. You knew about it. It was maybe something familiar to you because you had lived there or you maybe knew about it because you live near there.

I know about it. I like to invest over there. I own a rental property over there. I know it’s a great market and it’s better than where I live this side of Illinois by far. Over here in Illinois, you deal with a lot of high taxes. I think we have some of the highest property taxes in the country. We can call it tenant-friendly and it’s pretty hard to evict someone. It takes a while, at least. Indiana is the complete opposite.

You started in January 2021. You’ve got a little education. What did you change from before me to after me because you did some marketing? What were some of the big changes?

The first thing is I had to change my marketing strategy. I put down direct mail and I went into text messaging. I followed your program exactly how it is. I created a website and got a mailbox. All these things I probably would not have done if I didn’t join the program.

Do you have a full-time job as well or is this your only hustle?

I work full-time. I’m a truck driver. I drive semis for UPS so it’s a lot of hours. I’m doing anywhere from 50 to 60 hours a week. That was another thing why I went virtual because I didn’t have the time to go out and drive for 1 hour to 1.5 hours to go meet a seller face-to-face. I needed to find something that was more efficient. I would probably put away 2 to 3 hours in the morning to this business, Monday through Friday and I do Saturdays too.

If anybody wants to use the excuse that they have a busy full-time job, I don’t want to hear it because this guy works 50 to 60 hours driving trucks, which is not something that you can multitask and talk to sellers while you are doing it. For me, when I started, I had a full-time job as well but it was an office job. There were some times where I could do some research when we had downtime at work but you cannot do that. Instead, you fit these activities in the morning before you had to go to work and only 2 to 3 hours a day, which is I always recommend. If you can, at a minimum you will work three hours a day at this, that’s a number that I stick to as a minimum. It’s incredible what you have been able to do so now let’s talk about what you have been able to do from January 2021 to now with only 2 to 3 hours a day.

The first month was much like setting up the business, going through the course and absorbing the information. At the end of January 2021, that’s when I started pulling lists and sending all my texts and campaign. I went through some leads and getting the hang of it. I thought it’s fun. I’m texting a lot more. I came across a seller who wanted to sell her house. She lived all the way in Nevada. She was going through some things. She had suffered a stroke and her father wasn’t doing the greatest. There were a lot of family drama.

She had a property out in Indiana that she originally bought for her family to live on but she was renting it out. Her tenant wasn’t paying rent. She had a property manager who was pretty much unresponsive. There are two properties on the lot. She’s paying property taxes on two houses that she’s not even renting out or collecting any rent money for it. I had some downtime during work. I was waiting on a load to finish up. I picked up the phone called her. I had about fifteen minutes. I had a good conversation with her. From there, it was history. I made an offer. She agreed on it and it went from there.

Don’t be afraid to crush the competition. Don’t listen to the haters.

What did you end up getting out of that deal? What was the total fee?

That one was $20,000.

Your first wholesale fee was $20,000. That’s amazing. That’s really good. You did another deal shortly after. What did you net on that one?

That one went for $18,000.

The thing about the higher fees is when you see a fee like that in an area where the average house price is $170,000, typically that means it’s a less saturated market with other investors. If you are reading this, the more reason to avoid the major Metros and go to the suburbs that are outside the major Metros. You can own that territory, David, and what you might want to do because I know what’s going to happen next is you are going to say I have run out of people to texts. You are going to get lists of anxiety where you have run out.

There are only so many houses. The next thing you can do is try another marketing method and get the people that aren’t responding to texts because either they don’t check their cell phones or have cell phones. You can try direct mail, radio ads, TV. You are going to get a different seller. It’s going to open up and expand your market. Even though it’s the same market but it’s going to expand it because now you are catching the people that don’t answer text messages like yours. Rather than maybe go into another county or finding another virtual market, milk this market because your fees are so good that you can afford to do maybe some TV ads, radio or something that’s a little higher costs.

I was interested in TV ads. I have yet to book a call with Tony Javier but I’m not sure if that would be the right marketing choice to go into now, right away. I’m giving it some thought. I know with texting, it’s probably inevitable that it might go away. I have been thinking about that.

You are doing exactly what you are supposed to be doing so keep it up. I’m proud of you. Your success is very inspiring. How many of you guys who are reading this have got a full-time job and want to make some side money or start your side hustle that eventually will be your full-time hustle but you don’t know how to do it? You can’t imagine doing it with your 40-hour a week job. We’ve got somebody here who is at 50 to 60 hours and still was able to do it. It’s very inspiring for a lot of people.

Thank you. That’s pretty much that. If there’s one thing that people should dwell on is to make it work no matter what. I can’t say that more than once.

I didn’t realize that that statement had so much impact but it is a statement that I live by. I will make something work no matter what. When I get something in my head and I’m like, “It’s going time. I’m going to do it. I’m going to make it work no matter what. I do not commit to anything unless I have that attitude about it. There’s nothing worse than committing to something when you don’t have that attitude. You waste a bunch of time and didn’t work. You are like, “Why did I even do that?” You feel bad about yourself. I totally agree with you. Now, I bought into two coaching programs. Another one was YouTube. I’m trying to grow my YouTube following.

I did not even film a YouTube video months ago. I did not have any aspiration to be a YouTuber or influencer. That was not my background but I fell into this coaching role and influence. Part of it is social media and YouTube. I tried in 2020 to grow a YouTube following, just going off instinct. I did not know what I was doing. I had no recipe for growing my YouTube channel at all. I was posting videos. I had no clue what I was doing. I didn’t know how to title them. I didn’t know what to put in the descriptions. It sounds like your story. After about a year, I was thinking, “There’s got to be some mentorship on this. There has to be a coaching program.” I sought one out and found one.

WI 704 | Small Markets

Small Markets: Avoid the major metros and go to the suburbs outside the major metros and own that territory.

 

I had been taking this program. They only drop one module a week. It’s one of those. My course likely doesn’t do that. It’s a ten-week commitment for me. I have been watching this thing diligently and I am fully committed. What’s crazy is like, “This is my brain.” I’m like, “I’m going to crush this. Just watch in one year, my following is going to explode. I’m going to do everything this guy says. If it doesn’t work for me, it’s this guy’s fault basically, because I’m going to do everything he says to the letter. I’m going to be better than the examples. He’s going to put me in his course as a success story.” That’s where your brain needs to go and yours did. You didn’t listen to the haters, to the family members that were like, “You are not doing that.”

That’s pretty much what it means to be a rhino.

David, if I can give you one piece of advice that blew my mind is to network and talk with real entrepreneurs and level up. You are going to talk to entrepreneurs and maybe this level. You are going to like start meeting ones that are like million-dollar a year to multimillion-dollar a year. Keep leveling up, talking to them and asking them like, “What do you do when you are trying to learn a new skill?” They give you tips that are so valuable. That’s the advice you listen to. The family advice, they are just trying to help. Tune it out a little bit like, “Thanks, mom but you work in accounting for a CPA firm. How would you know what I’m trying to do?”

David, thank you so much for coming. It’s inspirational. I’m very proud of you. I cannot wait to see you when you come down to meet me at my office. If anybody does want to reach out to you maybe for some advice or you can pump them up a little bit if they are going through the same thing. I’m sure a lot of people are going to find you very inspirational. Are you on Instagram at all or any of the social media networks?

I’m on Instagram but I’m not very active on there. If someone wants to reach out to me, they can email me at David@CHBuyers.net. I will respond for sure. I have a goal-giver mentality so I would be more than happy to talk to someone.

Thank you so much, David. We appreciated having you. If you guys want to learn more about real estate investing and taking your business virtually, go to www.WholesalingInc.com/virtual. Thanks again for reading.

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About Lauren Hardy

LaurenHardy 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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