Epic Real Estate Investing - Virtual Wholesaling | 894

Episode Date: January 11, 2020

Let’s talk about virtual wholesaling! To facilitate your business journey, we are giving you the 6 steps to successful virtual wholesaling. Some of our clients managed to create wealth choosing this strategy and jointly with the skilled wholesalers, we prepared an advanced course for all of you who are seriously planning on doing real estate this way. Stay tuned and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-Aase.com.

Here's Matt. So now, let's talk about virtual wholesaling today. Hot topic. Everybody wants to be a virtual wholesaler. And so let's just get everybody on the same page. What is wholesaling? Because we don't talk about it actually that much on this show. I'm much more of a buy-and-hold guy.

I like wholesaling as an exit strategy, but there are plenty of people in the epic community, REIA's clients that are making their whole business out of just this strategy, and they're making a ton of money doing it. So what is wholesaling? Wholesaling is you get a deal under contract, you get a property under contract for a low price and you sell it to somebody else quickly before you ever take ownership at a low price. So basically the strategy you're selling low, excuse me, you're buying low and you're selling low.

It's a little bit higher than what you bought it at, but it's not sucking all of the equity out of the deal because your typical buyer on the other end is going to be an investor themselves. So you've got to leave a little bit of meat on the bone. And the more meat you leave on the bone, typically the faster that you can sell that property. So that's what wholesaling is. You got a seller and you as the buyer, and then you go out and find another buyer, so then you become the seller on that second transaction, and then the buyer comes in with all the money and pays the seller, and you get to keep the difference of what's in the middle. That's wholesaling. Okay. So what is virtual wholesaling? Well, it's the same thing,

just doing it in a market where you are not physically residing in, where your presence isn't physically there. So it's become really popular because people think that they've, you know, their is saturated or it's competitive or there's no opportunity where they live and, you know, I've got six steps to virtual wholesaling and how to do it successfully. I've got that for you today. But before we get to them, let's just do this. Raise your hand if your market is saturated. Go on, put them up. Raise your hand if your market is really competitive. Put them up. Come on. Yeah, see, just what I thought. Every one of your hands went up in the air. And for the few of you who didn't, because I saw you too, it was because you know I can't really see you. And you, you know, you can't really see you.

you're not going to actively participate with the recording. I get it. I probably wouldn't either. But the point being here is, of the thousands of people that I've spoken to live, when I ask that question, every hand goes up in the air. And then everybody looks around the room. And they all start to, like, chuckle a little bit because they somewhat have recognized how ridiculous the thought is that their market is more saturated or more competitive

than anyone else's. But there's plenty of money being made in every market, every day. Now, I've told this story here a couple times, and it just feels appropriate to tell it again right now. But last year I had two REIACE clients. And if you'd like to know more about this program, you can go to R.EIA's.com and watch a short little video there. It'll tell you what it's all about. Anyway, two of my REIA's clients last year both had concerns about their markets being ultra-competitive. And I gave them both the exact same speech, and it essentially said, stay where you are.

There's plenty of gold right under your feet, right where you stand. Do not do this virtually. Stay right where you are. Well, I got the results there. One of them listened to me and one didn't. And the outcome might not be what you think around the results based on who listened and who didn't. Because the person that listened to me that did what I told them to do actually failed. And the person that ignored my advice and went out did it their way anyway, totally crushed it.

They totally succeeded. So you probably think, wow, Matt, this RAA's program sounds great. Where do I sign up for your terrible advice, right? No, here's the thing. Here's the thing about these two. The client that didn't listen to me decided to leave his own market where he resided, totally crushed wholesaling virtually. But the thing is, here's the catch.

The market he chose was the market where client number two resided. So the point here, it wasn't the market. It was first in the belief in the market. the market. And second, it was the correlate work ethic that matched the belief. Client number one believed in his virtual market. He knew he was going to make that succeed. He rolled up his sleeves, he went to work, and he completed his first seven-figure year.

And he did 100% of it virtually from another town from where the deals were actually happening. And client number two didn't believe in his market, made excuses as to why nothing was working, Mind you, in both cases, we're talking about the exact same market. One person lived there and one didn't. That's the only difference. So the big takeaway, it's not the market that's holding you back. It's not the market that's competitive.

It's not the market that's saturated. That's keeping you down. But with that said, is compelling as an example that is. And I couldn't have drawn it up or created it any better. It happened in my world. And I get to talk about it all the time now. It's what I've always believed. But now I've got actual proof.

I've got two great case studies to prove that. But based on that, people are still going to ignore this advice. And they're still going to go do it their way anyway. I get it. I'm guilty of that sometimes myself with my own coach. I actually just had that revelation here last week, two weeks ago. My mentor was telling me this is what you need to do. And I was like, mm-hmm, that's great advice, but I'm still going to do it my way.

And I caught myself. I was like, uh-uh. See, that's a repeating pattern. I always do that. and I make fun of people that do it with me. And I actually am guilty of it myself. So you can take that advice and you can run with it right there in your own market, but I know there's still people, regardless of how I say this,

or how many times I say it, or in which way I say it, or what source it actually comes from are going to ignore the advice. And so for those that do, I want you to go to your virtual market with the greatest chance of success possible. And so something I did for you, I reached out to client number one. and I asked him if he'd come out here and share with you what he did to just absolutely knock it out the park in the way that he did. And he scratched his head and he says, yeah, I'm open to that. But if you want me to share, I've got to share the whole thing.

And it would be just way too much for a podcast. I'd want to do it the right way. So I'd be interested in doing something much bigger. The podcast doesn't interest me. I'd be interested to doing something much bigger. like, let's just create a complete course with everything I use in my business, everything. I'll just walk them through step by step. I'll give them all my documents and tools and resources.

Give them everything and exactly how I did it. And I was like, we'll, I couldn't refuse an offer like that, right? Because I'm kind of done creating courses. We do a lot of implementation. We have a marketing agency now and we've got the turnkey going. And so I'm kind of done with the education part of things and creating courses. but I was like this was such a compelling offer, and I wouldn't really have to do it.

And I thought what was really exciting about it is that it's coming from someone that's actually in the trenches doing it. They are not a guru. They have no aspirations to be a guru. They are not an educator. They're not going to be on stage. They're not going to be doing events.

And they decided that they wanted to bring it all, everything that they needed or everything they learned to bring it right back here and share it with you. So I was like, I couldn't refuse that. Then it gets better. A third RIA's client. Caught wind of this. who also has a seven-figure wholesaling business.

He caught wind of what we were doing and decided he wanted to contribute as well. So what we did, at the end of last year, we put this whole thing together. And we're going to be releasing it very shortly. We created the whole course with a private small group of people and we went through it and now we're going to be releasing it to everybody very shortly because it was very successful and it came out really, really good.

And so I have critical quality control off of anything that I'm doing these days. and so I just want to make sure everything I release is going to be of the highest quality and the highest integrity, and it's going to be something of real value. Otherwise, I don't want to be involved. So we'll be releasing it very shortly. So you may go to wholesalingvirtually.com, wholesalingvirtually.com to sign up for the first notification. But before we go any further, I also wanted you to have this or understand this. I need to get this straight.

Out of respect for your time, this course is about high-level wholesaling. It's not an entry-level course. It's not for beginners. This is the real deal. Here's what I mean. Most people, when they hear virtual wholesaling, they've got these images of themselves sitting on their couch,

pushing buttons with a bag of Cheetos by their side, counting the checks that overfloweth their mailbox. This course is not about that. Bigfoot, mermaids, or little green men from Mars. No, this course is the real thing. The average person that would be drawn to a, course like this, a virtual wholesaling course, how to wholesale properties in any market, regardless of where you live, from your laptop sitting on the beach, that person, that typical

person is going to get little to no results with this course. The results will vary and depend on many factors, including but not limited to your experience and work ethic. Mostly your work ethic. So there are no income claims or prompt. of this course, my intent is to make available to you the actual how-to of virtual wholesaling that actually works from someone, from two people that are actually doing it, that aren't gurus, that aren't speakers, they aren't authors, they're just virtual wholesalers. And so before I share with you the how of what they did, I want this to be clear. If you are not willing to take instruction and implement what you learn with massive action

and effort, please do not enroll in this course. It's going to be a waste of your time. It's going to be a waste of your money. You got that? So if you're not willing to take instruction and implement what you learn with massive action and effort, don't do this. Do not get involved. You can later maybe if it's still available, but the timing is not going to be right

for you if you're not willing to make that commitment yourself. If you're willing to take instruction, however, and you're willing to implement what you learn, then get on the waiting list at wholesalingvirtually.com. Wholesalingvirtually.com. Did I say dot net before? I think I might have said dot net. It's dot com. Wholesailingvirtually.

Dot com. All right. So let me give you the steps of the course. Because you may be able to take what I give you here and implement yourself. And I'm not going to hold anything back. I'm going to give you everything. But there's only so much detail I can provide in this format and the time that we have here. But I'm going to give you as much as I can so you understand the steps.

Okay. So step one. Establish your mindset and choose a market. So the mindset being, a lot of people kind of their eyes roll back in their head when you talk about mindset. No, the mindset is everything. And the real deal is this is a full-fledged business. And if you want it to pay you like one, you've got to treat it like one.

And, you know, something I notice frequently with the different people that apply for the RIAs program is they can be split really into two different categories. It comes with two different types of people. Category one, they've got a real estate problem that they're looking to solve. Meaning they've never completed an off-market investment deal. and they need help with that process. So it's a real estate problem that you've got, and it's because you've never closed like an off-market deal, it's too soon for this course.

Okay, but I'll stick with us. I'll let you hear what it is, hear about it, and then you can think about it for the future. But category two, which is probably the more common person that comes to RIA ACE, they've got a business problem, meaning they've got a deal or two under their belt already, and in some cases, many deals, They've got a business, right?

They're making money in real estate, but they really struggle with consistency and they struggle with growing their business bigger. And that's what we call a business problem. So category one's got a real estate problem. Category 2's got a business problem. And those are two different problems that require their own unique situations.

So that's where establishing the right mindset and setting the appropriate expectations is really important. And then choosing the right market. I've always suggested starting with a market that you're either familiar with and or have relationships there that you can lean on if you needed to, if you're going to do this virtually. You know, you want to go to a market that you have somewhat familiarity or you're going to be

working with somebody that has familiarity with that market. And my client believes this is very important. Does not disagree with that advice at all. I've always said that. But he's got other parameters to the right market that he feels are essential. And a big one is the average ARV, the after repair value. And his sweet spot in the ARV is between 150 and 350,000 bucks. As the demand, his reasoning is, the demand seems to be higher there while still lending to decent-sized wholesale fees.

The demand, meaning there's still cash buyers at that price point. When you get too much higher than that, the cash buyer pool starts to shrink pretty significantly. And, you know, you can go to a market that does 40, 50, 60,000 dollars, and we've got plenty of clients that do that. But your wholesaling fees are going to be much smaller. So his sweet spot is between 150 and 350,000 for his market. Okay, so step two, the planning, the essential tools and the communication. And a plan, obviously, it's always important, right? If you fail to plan, you plan to fail.

That's how the saying goes. And we've all heard that before. If you fail to plan, you plan to fail. And you're going to be dependent a little bit more on tools in a virtual business since you're not going to be in the market physically. And many of those tools are going to revolve around creating efficient communication with sellers, creating that efficient communication with buyers and your team. And Voxer, that's a common tool for virtual teams.

That's how I communicate mostly with my team. And it's how I communicate with all of the RIA's clients. It's just a free app on your phone. It works like a little walkie-talkies. It's kind of crossed between a walkie-talkie and a text message tool. And it's totally free to use. That's really effective. And then you're going to need a CRM with integrated communication.

That's going to be important as well. So those would be the bare necessities. Okay. So step three. building a virtual team, the training, and the tracking. So you're going to need to build a team. The team members you're going to need, you're going to need a lead manager, you're going to need an acquisition manager, a marketing manager, a transaction coordinator,

and a disposition manager. Of which my client, he did all of those things by himself in the beginning. He wore every single hat in the beginning. But as he went along, one by one started to delegate these roles. And now that he's done that, and that's why he's growing in the way that he is, and why he's able to add even an additional market, which he's doing right now. And he's in the process.

His whole plan is to create this Bermuda triangle in his territory where he'll have a strong presence in three different markets and then he'll be able to serve everything inside the triangle. I mean, he's got like total triangle domination going on. So that's his plan. But it doesn't have to be. The point being is the training of the team, it's vital. It's vital to pull off something like this,

the virtual wholesaling business. And then tracking. We don't talk a lot about tracking here. And, you know, we track our daily activities, and if we do the right activities, we can trust the results will come. But at some point, when you get to a level of your business, and if you want any sort of high-level coaching,

you're going to have to track your actual results. You're going to have to track what we call your KPIs. And it's essential for any business, but even more so in a virtual one. Because you're not going to be there physically to oversee what's going on. So you've got to keep your eye on the numbers, the KPIs, the key, performance indicators.

You know, how much are you spending? How many times is the phone ringing? How many people are you actually talking to of those calls that are coming in? How many appointments are being set? How many contracts are you getting signed? And how many of those deals are actually closing where you get paid? Those are the examples of the typical KPIs. So tracking can't be underestimated in a virtual wholesaling business.

So you've got to track all that stuff. Number four, you've got to build the lead machine that fuels a virtual business. And your lead machine with a virtual business is not, going to be too different from that in your local business. I mean, you won't have the advantages of creating the face-to-face relationships. So, like, the networking and, you know, just those, yeah, basically networking and creating those relationships, that's probably not going to be as available to you. So you'll have to make up for it in a through other means, like direct mail and digital marketing. A virtual business is going to require, in most cases, a bigger marketing

budget than you'd probably use for your local one. But it's really all the same thing. It still leads are generated the same way. And all that can come to you virtually pretty darn easily. Number five, building a deal driver system that converts the leads into contracts. And it's here where the biggest difference lies between a virtual business and a local one. You've got to receive the phone call. You've got to build rapport. You've got to discover their problems. You've got to propose your solutions. And typically in the form of an offer. And when you get to send that offer over when you present your offer, you can email it, you can fax it, you can FedEx it, you can use DocuSign, you can send a mobile notary, all solutions that can work. But the best

solution is to have actual boots on the ground to run the appointments, to take pictures, to scout comps and get contract signed. And there's a lot of different types of people that can fill that role for you. That can be a friend or a relative that might want to start working with you was interested. It could be a bird dog. We use inside of the REI Solutions portal, there's a thing to find property finders, which is just a nicer name than bird dog. But a lot of people have built some virtual business and virtual relationships that way. Or maybe another wholesaler that you call through in contact, like through the classified, something like that. Or a realtor in the area. A realtor can be a good partner for you in this. Or maybe you have an employee. Maybe you hire

somebody or you joint venture you have an actual partner that's someone that lives there and you live where you live and you guys partner up so there's a lot of different solutions to this converting leads into contracts into good contracts i think the best one is having the boots on the ground but it's not a hundred percent essential okay there's a lot of technology and in different ways that you can get that done number six company automation branding and scaling so this is where you start removing yourself from the business to where the business really becomes a virtual business and you become a business owner, the one that not only runs with your direct involvement, or excuse me, not one that grows without your direct involvement.

I say that correctly, I think I got a double negative in there. This is where you start removing yourself from the business, start working on your business more than you're working in it, and it runs with or without your direct involvement. And not only that, it also grows with or without your direct involvement. And that happens through systems. It happens through automation, through delegation, it happens through branding and becoming and, you know, just a market presence. You know, client number three that I mentioned earlier,

he ran two different markets for the last 18 months or so from the other side of the country. So it can be done. It's being done. It's being done by multiple clients right here in the RIAs program. So those are the steps to follow if you want a virtual wholesaling business. And if that sounds like something you want to do, and you'd like some additional help with that

from two monsters in the business that have pulled it off and pull it off really well, go to wholesalingvirtually.com and get on the announcement list. And that's going to be sent out very, very shortly. Those applications will be available very shortly. And they can't accommodate. Like I said, they're not gurus, right? They're not coaches. They're not instructors.

They can't accommodate an unlimited group of people. So if you want to get in on that list and you want the first notification, then do that. Go to wholesalingvirtally.com. All righty. God bless and to your success. I'm Matt Terrio. Living the Dream. Yeah, we got the cash flow.

Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know, home for it, we got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.