Virtual Wholesaling – WHAT IT IS !? | PROS and CONS vs. Your LOCAL Real Estate Market

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– Hey guys, what’s happening? Steven Howell here and
let me ask you a question. Have you ever had a bad haircut? Well, isn’t that one of the
most frustrating things, if you have had a bad haircut? When you have these high expectations and you’re going to the
barber or the beauty salon or wherever you’re going and you come back and it’s
not quite what you envisioned. Well that experience happened to me today and I wanna tell you a
little story about that. But if you’ve come to this video because you’re like,
“I want to learn about “real estate wholesaling,
specifically virtual wholesaling “versus doing it in my own backyard,” don’t worry, you’ve
come to the right place. So if you’d rather skip my little story about my bad haircut experience
that you’re staring at, I have kind of a big forehead and not too happy with
the haircut that I got, I was tempted to wear a hat in this video, just skip forward about 30 or 45 seconds. But, anyways, we’re gonna dive into the virtual wholesaling topic versus local ’cause this is a question
that I get from students, subscribers, and I wanna give you guys some pros and some cons. Maybe you’re getting into
real estate wholesaling, real estate investing and you’re wondering if you should do it in your own backyard or if you should do it
in a virtual market. So we’re gonna talk about
that in just a second but back to the bad haircut story. So, the barber that I typically go to, they’re one of those
straight razor barbers, awesome, they do it up really nice. At the end they put a
hot towel on the neck, they have the straight razor, you know, shave you really well and it’s about 30 minutes away from me. So, what happened is the barber
shop that I typically go to there was a fire in the front of it. It’s in a historical district
of the city that I live in, about 30 minutes away from here, and there’s some fancy
restaurants on that street, trendy restaurants I should say. And there was a kitchen fire
in the middle of the night and the businesses behind it got a little blow back from the smoke. So thankfully, the
barber shop that I go to, I know the owner, it’s kind
of a mom and pop business. He’s always slam packed and
just another little side note, I love like talking with business owners and small business owners and
entrepreneur-minded people and this guy, the way that
he runs his barber shop, it’s so awesome. He’s literally booked out every 15 minutes and if you’re late, sorry,
you’ve missed your appointment. And he’s booked from like
seven, eight in the morning ’til five or six at night. Just an awesome dude. So, I’m always picking up little tips in the efficiencies of how
people run their business and I find that stuff fascinating. So anyways, thankfully his
business wasn’t damaged too, too much and he had insurance and all that type of stuff and in his particular building,
he had just painted it. He also, like myself, he’s in
the process of having a baby. His wife is pregnant right now and so they just
renovated the barber shop, all new paint, and then this fire happens. So anyways, he recommended
that I go to another barber, which was actually about
two or three minutes from my house. They’re also a straight razor barber, really great reviews. And I actually went
there about two weeks ago and my hair grows really, really fast so I try to get a haircut
every two or three weeks, somewhere in that range. And the first time I went there, it was one of the best
haircuts I’ve ever got. I’m like, “This is awesome, man, “it’s a lot closer to my house, “two three minutes versus 30 minutes,” and his business isn’t
quite up and running yet so I was gonna give this
barber shop another shot. Went there today and got
it cut a little too short so I’m a little self-conscious about that. I was thinking about wearing a hat but just figured I’d kinda
tell you that story there ’cause man, and my wife
makes fun of me all the time, I’m like so picky about my haircuts. If they go up a little
too high on the sides and when you have a big head like I do, when you have a five-head
instead of a forehead, it just looks a little silly
when it gets cut too short. So I was thinking about wearing a hat but I figured I’d just
jump up on camera here. But I don’t wanna distract you so I needed to tell you that story because when you’re looking
at the whiteboard here about virtual wholesaling,
I need you to be focused on what I’m saying and
not looking at my head. So, I’m glad we got that squared away, this was my attempt to be funny. I’m working on my dad jokes, I’m working on my humor
so just bear with me here. So, let’s dive in
without, I said 30 seconds or a minute and that was
like what five minutes? So goodness gracious,
we gotta get going here. So, virtual wholesaling
versus local wholesaling. Let’s talk about some of the pros and cons if you’re wondering should you
do this in your own backyard or should you do this virtually? It’s a very sexy topic and I know the people who
are watching my videos, if you’ve come across my videos. First off, let me say
this, if you’ve come across this channel for the first time, I typically don’t go on
personal rants like that but you’ve come to the right place to learn about real estate investing, mindset, entrepreneurship,
business building, and to develop real skillsets
in your life and business and I’m so glad to have you here. Definitely make yourself at
home, check out the videos, subscribe to my channel if
you’re liking the style, if you’re liking the content. And make sure you hit
that beautiful little notification bell so that way you can get notified when new videos drop. And so anyways, virtual wholesaling versus local wholesaling. What happens is when people
are just getting going, they’re wondering, “What should I do?” And I talk to a lot of people, I offer actually a one on one free, complimentary consultation. You can get more details on that, this video is not about that, over on my blog at Productive Wisdom. But, over the last few years of working with people one on one, of talking with hundreds
and thousands of people in these one on one strategy calls, and just in the comments and emails that I get all the time, one of the biggest questions is deciding on where you want to set up shop, where you want to promote your business, where you want to set up
your real estate investing and wholesaling business. So, doing it virtually, let’s talk about some of the pros for doing it virtually versus doing it local. So if you’re doing it virtually, one of the biggest pros
is time efficiency, right? You’re not personally driving out to meet with motivated sellers or pick up a key or a lockbox or put out
advertising locally, and meeting people in person,
and all the drive time. So, the leveraging of your time, which is one of your most valuable assets, is a huge benefit. Number two, if you’re in
like a smaller, rural market, you know that it can be
tough for wholesaling, right? You wanna be in a bigger, booming market. It doesn’t mean that the market has to, I shouldn’t say booming, but you wanna be where
there’s lots of houses, lots of sales, lots of things happening. You don’t wanna be out in
the middle of the country or something like that, its
gonna be very, very difficult to get your business up and rolling there. So, maybe you live in a smaller city and there’s a bigger market
within an hour or two of you. And I know this was the case
for me when I first started. So there’s that aspect of it. And then just the sheer sexiness of it, virtual wholesaling. Hey, I can run my business
from a coffee shop, I can run it from around the
world if I’m on vacation, on my laptop from the beach. You know, you see that whole trend. And for the people who
are watching my videos, and this is what I was gonna say earlier so sometimes my thoughts will go like that so thanks for bearing with me. But a big demographic of my audience that I did not know until
recently is millennials. Now, I work with a lot of people from just out of high school, just in college, just out of college and there are people who follow me, believe it or not, I just got an email the other day from two twins from Texas who are 75 years old and who have been
wholesaling for six years. They stumbled across my YouTube videos, they’ve latched on to some
of the training that I do, and they’re out there taking
action and making things happen and they’re 75 years old. So, I work with people
all across the spectrum but a big percentage
is millennials, right? And then there’s all sorts
of other percentages, too, mid-thirties, forties, fifties, but millennials have it like there’s stats and stuff
that have been done that they’re very, very interested
in wholesaling virtually. So, if you’re a millennial and
you’re watching this video, this is right on the money for you. So, virtual wholesaling, there’s just this sexiness of it, right? You can do it from anywhere, you can pick and choose your markets. If your market kinda sucks, you can go into a better market. If your market’s small, you
can go into a bigger market. So those are some of the benefits, right, of virtual wholesaling. Very appealing, right? So let’s talk about some
of the negative sides to virtual wholesaling. So, if you are virtual wholesaling, one of the biggest negatives
is that eventually, you’re gonna get to the point
when you’re wholesaling houses that you need to get pictures
of the inside of a property or go meet a seller and build rapport or put a lockbox on the property or pick up a contract or maybe meet a contractor or a buyer or an end investor who’s
gonna buy the deal. Meet them in person to build rapport or meet them to pick up
an assignment contract or something of that nature. Eventually, you’re gonna need someone on the ground, in person. Now, thankfully that’s
not all that difficult but when you’re just getting rolling, that can be a little bit of a roadblock for some people, right? So, there’s the extra
step of hiring someone. Now, it’s not as hard or as
complicated as you may think, however, it is that extra
little hurdle to get through when you’re getting your
business off the ground. However, it can lead
to some great benefits, as we’ve already talked about. So, basically, what does that entail? It entails you writing a Craigslist ad, a compelling ad explaining
and being very detailed, so that a lot of times when
we’re staring a at blank page where we have to do some
type of creative work, where we have to do that
critical thinking of like, “Okay, what is the
headline of my ad gonna be? “What are the specific
things that I need to say “that very specifically and very detailed “explains exactly the type
of person I’m looking for “and the exact duties
that I want them to do?” And when I say duties I
think of the show Friends with Chandler Bing, but anyway, side note. So, there’s that critical
thinking aspect there of like okay, I really
need to think this out and then, you need to talk
with a couple people, right? So then there’s that effort
that you have to put in and maybe there’s a
little bit of nerves there in talking with someone about being that man on the ground or woman on
the ground for your business, kinda your boots on
the ground type person. And then, once you have
your heart set on somebody and you have somebody that you trust, that you feel good about, there’s that person of like, well what if after a couple
of weeks of doing this for you or a month or two, they
go on to something else and then you have to
advertise all over again? So there’s the turnover
and the attrition rate and all that type of stuff
to think about, right? So, just if you’re considering
virtual wholesaling, and I can do another video on this, I don’t wanna make this too
all over the place here, but just a golden tip is what you wanna do is you wanna become more
efficient at making verbal offers and then you only send someone to go on your really, really hot appointments to kind of be that face
in person of your company to really meet with a motivated seller if it’s absolutely necessary or to put out signs for
you if you’re selling a deal on the backend, to meet a buyer, to get
a lockbox, to get a key. And what you can do is
you can simply Paypal them 20 bucks, 30 bucks, 40 bucks
depending on their time spent. And if you do it right, a
lot of times in the beginning you’re only sending maybe
one or two payments a week. So that I guess would be,
especially if money is tight, that’s gonna be another negative is there’s gonna be a
little bit of a cost to it. Maybe 30 bucks a week, 60 bucks a week, that type of thing. As you get going and you
get that first deal done. Once you get your first
$10 or $15,000 deal, you don’t mind spending a
few hundred dollars a month to have this vital piece, this vital person in your business. Another golden tip and golden nugget, and if you’re liking these tips, this is another beautiful
chance for you to subscribe to this channel, hit
the notification bell, leave me a comment below, and share this video because
I wanna get the word out. A lot of people are making
this more complicated than it is and there’s
some confusion about this. But who are you looking for if you’re wanting to wholesale virtually and you want like kind
of boots on the ground? What I found and what I use because I did this for the
first couple years in business, I was wholesaling in a city that was about an hour and a half away from me and I never stepped foot
in this city, not once. I never went to one closing, I did it all 100% virtually so I want you to know that it’s possible. I found someone who basically ran kind of like a renovations company, or I shouldn’t say renovations, they did renovations but they were more of like a maintenance man. And this guy, his name was Brett, and he was just a good, down to earth guy. He was a great people person. We developed a really
good working relationship and he would just go out,
you know, pick up contracts, meet with sellers, tell them a
little bit about my business. And all the time, when
I would talk to a seller after Brett went out
and picked up a contract or picked up the key, they would be like, “I just love Brett. “Steven, he was awesome,
thanks for sending him out.” And I’d just say, “Yeah, Mrs. Jones, “I definitely wanna come see the property, “I’d be around 200,000 for the property, “I’d love to see it on the inside. “I’m not gonna be able to make it myself “but my partner Brett can
come out there tomorrow “at five o’clock, how
does that work for you?” So that’s kind of how I would set that up and structure that. So finding a good, and I just put an advertisement in Craigslist. Now, you can advertise in various sites but Craigslist is a really good one in finding someone in
the general labor section and finding like a good,
all around people person, maintenance man, that type of thing or any other connections. Maybe you have family, friends, relatives, acquaintances in the city that you’re trying to virtual wholesale. So, those are some of the pros and cons about virtual wholesaling. Now, what is the other option? The other option is getting
your real estate business, your investing business,
your wholesaling business set up in your own backyard. And there’s a lot of different
schools of thought on this and I obviously listed a lot of benefits for virtual wholesaling but
if you had to ask me like, “Steven, if you had to say
what was more beneficial “or what should I do? “Should I do this locally? “Should I do it virtually?” You certainly wanna consider
like where do you live? Do you live in a small
market or a bigger market? In each state in the United States there’s a couple of bigger cities and wholesaling is gonna work best in some of the bigger cities. Like for example, I live in Ohio. There’s Cincinnati, there’s
Columbus, there’s Cleveland. I live a little outside of Dayton, Ohio which is a little bit smaller of a market You know Tennessee you have Memphis, North Carolina you have Charlotte, and there’s other cities as well. So it doesn’t have to be like
one of the biggest cities in all of the nation, I’m not saying that. It just needs to be a pretty
good market size, right? So you wanna look for, if you
just go to like Google Maps and you type in the city and state, it’s gonna a lot of times
give you a population and you want that population to be over a quarter of a million just as a general kind of
wide ranging rule of thumb. But I would say, to answer that question, it’s always a little bit easier, it’s always a little bit better, I think, to get started in your own backyard. Why? Because typically a benefit to doing that is you’re going to know the
area a little bit better and that’s actually
something we could list in the negative column
of virtual wholesaling. You’re not there virtually, or I’m sorry, you’re not there physically
so you might not know the area as well, it might
be a little harder for you. Although you can overcome this, I certainly did overcome this. You know when you’re talking with sellers and they’re talking about, “Oh yeah, over on Jefferson Street,” and you’re kind of just
going along with it but you don’t know Jefferson
Street from whatever. You’re just kind of
rolling with it, right? So there’s that little
bit of like vulnerability that you have to push
through a little bit. So when you’re doing it locally, chances are, you’re going to know the area a little bit better. Chances are, you’re gonna
build a little bit better local connections with
end buyers, with sellers, you’re gonna learn the neighborhoods and the zip codes faster and better and become more of a
master of your market. And then, if something goes
wrong or whatever the case is and you need to run out to a
property and pick something up or save a deal and
really talk with a seller or meet a buyer or put out any fires that could naturally
creep up in your business, you can just do that in person,
right in your own backyard. So that’s a big benefit as well, right? Another benefit is that it’s less steps to get up and running. So again, you’re not having
to post an advertisement and interview and explain and go through attrition and turnover, try to hire somebody to go
out on your appointments, to do these different activities that require somebody in person. You’re able to just go do them yourself so it’s gonna save you
money from paying them and it’s gonna save you those extra steps and sometimes those little extra steps, when your confidence is still growing and when your belief
system is still growing, that can really put a hindrance
on your progress, right? So there’s something
to be said about that. Another benefit that we’ve
kind of already touched on a little bit is that you’re
gonna be more relatable. If somebody’s talking about
something that’s happening in your town, your city, you’re gonna more likely
know what’s going on, know what they’re talking about and be a little bit more
relatable from that aspect. So that’s kind of some of the differences in what you want to think about. So, if at all possible, if you
live in a big enough market, or if you live within 30 or 45 minutes of a big enough market, I would say to focus on that local market. And regardless of whether you
want to wholesale virtually or wholesale locally, here
is another word of wisdom, golden nugget that you wanna write down and make sure you remember. One of the things that when I’m talking with a lot of people that
they’ll often say is, “Yes, Steven, I wanna
get this up and running “here in this market “and then I wanna go to
this marker over here “and then I wanna go over here,” or, “I’m thinking about doing it “in both of these markets
and see what works better.” That, a lot of times,
is a recipe for failure and I wanna advise against that for you. I wanna recommend that you decide to put your stake in the ground, that you decide to put
your stamp in one market and you become known
as the person to go to in Charlotte, North Carolina, the person to go to in Memphis, the person to go to in whatever market that you’re choosing to dominate. You wanna be known, you wanna
get the message out there that Joe or Johnny or Becky or whoever’s watching this video, that you and your partners buy houses, that you treat people right, that you make fair offers, that you always lead with
your best foot forward, and that you have a solution for them and if they need to sell quickly, you are the person to come to. It won’t always be a perfect situation and maybe the best thing for them to do is to list it with a real
estate agent or a realtor. You know, maybe it’s not the best fit and that’s okay to tell people too but they need to know that you are the person to come to and it’s so much easier
to get that message out if you are focused on one central task and you wanna be the master of one market and not all over the place. So often I’ll talk with people
and it’s just simply because they’re trying to do the right thing and they’re not sure
if xyz market is better or market over here. And if we’re honest, we
hear all sorts of things on these YouTube videos
and podcasts and courses and seminars so we have all this influx of information coming in and we’re just trying to
do the right thing, right? I totally get it but
having been in this game for a long time, I want you to understand
that you need to stop doing so much, less is more. Less is absolutely more and
the more you get focused and the more that you clear
the clutter and take away and you just focus on a few things, the faster it’s gonna
be for you to succeed and I just want you to write that down, I want you to understand that. So guys, that’s what I
have to say in this video. We’re talking about virtual wholesaling versus local wholesaling. Whether you’re a real estate agent, whether you’re a wholesaler,
a rehabber, a landlord, these principles, these
concepts can still apply to you and hopefully you got
some wisdom in this video. So guys, I am so grateful for you, thanks for checking out my channel, thanks for checking out this video. If you like this video, definitely let me know it. Also, feel free to comment below. Let me know what type of videos you want me to make in the future. What market you’re in, let me know in the comments
what market you’re in, if you’re committing to doing
this in a virtual market or a local market and maybe why. And I just love to kinda see the where you guys are investing, what market you’re in and who knows, maybe you guys can make some
connections in the comments. As I do more and more
of these daily videos, I want this, this YouTube channel, to be a fun place to come for
you to get some education, a little bit of entertainment
from my goofy self and really to have a community
here of like minded people, entrepreneurs, real estate investors, business building who are going somewhere, who are making an impact and helping other people. So if you wanna be a
part of that community, stick around, watch these videos, go check out my other videos. I will see you guys in tomorrow’s video. I have some really cool topics planned but I always wanna hear back from you what you wanna learn because
I want these to be valuable and that’s all I have. I’m gonna stop talking, I’ll see you tomorrow.
Thanks so much.

11 COMMENTS

  1. Steven, you must be telepathic cause this is exactly the topic I was looking for and bang you made a video. I would like to know what to say when I post an ad on craigslist for a virtual assistant. Once again thank you so much and God bless you brother!!! PS: Don't worry about the haircut cause it will all grow back, just go back to your original barbershop lol.

  2. Lol the hair cut insert 🤣🤣 great Story my day would hv been ruined.. I needed this bounce back theory on how to keep it a good day!

    I had a virtual assistant for my books. Good idea for Real Estate. Is this done in the middle stages of the business or when the business gets too busy for a 1 person workload?

    Great Value once again Steven Thanks!

  3. What’s your thoughts on hiring someone on “bird-dogging” is this a good fit for wholesaling or a technique for the “big dogs.. great tips! Ty Steven

  4. I started wearing my hair bald because of a bad haircut LOL the thought of being able to do deals from the beach has always been a dream since I learned about real estate investing

  5. Nice haircut lol. I am going to start Probate investing in my county and then use virtual wholesaling to scale up my business. Great info!

  6. Attention: 2 new 1on1 mentoring spots are now available for a limited time. Get the exact details and apply here: http://stevenhowellmentoring.com/1-on-1-elite-mentoring-program/

    I’ve had many people reach out and ask if I’m still offering 1on1 mentoring in 2018. The answer is YES. However I do it for a small handful of people at a time to give them a ton of attention and help them get up and running and successful. I’ve recently had a couple spots become open hence this note.

    November, December and January have historically been my very biggest months in real estate and it’s the EXACT same for my colleagues. There is no better time for you to begin than right now. So many people are wanting to unload their problem property before the holidays, before winter or even just after the holidays. They want to sell the property for taxes purposes heading into the new year. Every single big investor I know all agree, this is the time of year to finish strong and clean up.. It’s also the perfect time to unleash your marketing and get your first big deal done!

    This 1on1 mentoring program is not for everyone and the above page will explain very clearly what is all included, who this is for and who it is not for. Only apply if it completely resonates and you’re ready to begin now.

    If you’re considering making something happen in your real estate business. I highly encourage you read through the above page and apply now. 90 days from now things can look totally different. You don’t wanna sit on the sidelines during these smoking hot months!

    I look forward to helping you 🙂
    -Steven

  7. i'm in detroits market – i wanna learn how to virtual wholesale, (i ask that you do some how-to vids for that)

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