How This Man Made Six Figures a Month Virtually | Omar Lopez

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Speaker 9 All right, science flipping podcast listeners. As always, this episode is brought to you by Rocketly.ai.

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Speaker 9 What is up, science flipping family? We are back with an incredible guest, Omar Lopez is in the house. What's up, brother?

Speaker 10 Hey, how's it going?

Speaker 9 This man is doing virtual wholesaling innovations across the country, specifically

Speaker 9 six states.

Speaker 9 And we need to know his story because I think a lot of you guys are going to relate to his story because being a real estate investor was not his main goal growing up.

Speaker 9 And I think everyone here, including myself, can relate to that. But let's start.
How are you now making six figures, doing it all virtually? What's your focus right now in your business?

Speaker 10 So right now, our focus is wholesaling innovations, and our main marketing strategy is PBC. Okay.
So we run our own campaigns and we do it all over the phones.

Speaker 10 So just underwrite these properties virtually. Fast home cash offers.
That's the company. That's it.
And we just lock everything up over the phone.

Speaker 9 So, right now, go look up fast home cashoffers.com. Yep.
Check them out. Make sure you're following them on Instagram and all the other platforms.

Speaker 9 Successful, successful real estate investor has been doing this six years or so, rocking roughly six figures a month gross, only spending 20 grand a month to get to six figures.

Speaker 9 So if you guys are listening to those numbers, that's that's a 5x return on your marketing spend. That's exactly why he's on this podcast.
Excited to have you, dude. Thank you.

Speaker 9 But with that said, let's take you back how you got started six years ago. It's a great story.

Speaker 10 I come from a Mexican background and nobody in my family is in real estate or entrepreneurism, none of that. So

Speaker 10 growing up, I went to college, graduated. Matter of fact, I actually got expelled from school.

Speaker 10 So when I got expelled from school, I ended up going to the continuation school and I got all my credits and I went back to the same high school that I was at and I graduated as an 11th grader.

Speaker 10 So yeah,

Speaker 10 cool story, right? Everybody that that's expelled, they typically graduate later. Yeah.
But I ended up just getting all my credits fast and I graduated early from 11.

Speaker 9 So but that proved to you that you could do some cool shit, right? Like to be able to go do that, it showed like you were being lazy, you were being in it, you know, you were fucking off.

Speaker 9 And when you took it serious, what you could do, right?

Speaker 10 Right. So I always knew that I had potential.

Speaker 10 Even though I was getting into trouble, trouble, you know, selling drugs in high school and all that stuff, getting expelled, I ended up going back, you know, and I graduated early.

Speaker 10 So from there, went to college.

Speaker 10 I got a, what was it,

Speaker 10 associates in science in horticulture, plant science, turf grass management, all that. I got two degrees because I thought I wanted to be in landscaping.

Speaker 10 So, because that's what I used to do ever since I was six years old, my father used to take me to work with him. He's a Mexican.
He's worked hard all his life.

Speaker 10 So he took me to go mow lawns ever since I was six. So I ended up having my own little gardening route and mowing lawns around where I used to live, Southern California, Palm Springs.

Speaker 10 And I thought I wanted to have my tree trimming company. So I started trimming trees because that's what

Speaker 10 we used to pay more at the time.

Speaker 10 And this was the start of my entrepreneurial endeavor because I ended up quitting the job that I had for a year and a half. I bought my own tree trimming equipment, a new chainsaw.

Speaker 10 You're putting it on your shoulders.

Speaker 9 You were going to go do it yourself.

Speaker 10 Yeah, I remember it was palm tree season roughly six years ago in June. And I remember just venturing off.
I said, you know what? It's tree trimming season.

Speaker 10 I get paid more if I do it by myself instead of working hourly. So I got all my equipment.
I remember making like 600 bucks in one day. And to me, that was a lot of money.

Speaker 9 Right. It's still a lot of money.
I mean, depending on who you are, that's a lot of money.

Speaker 10 But I had to trim 40 palm trees that day, up and down, up and down.

Speaker 10 That was brutal.

Speaker 9 You're not going to see me doing that.

Speaker 10 You're not going to see me doing that anymore either.

Speaker 10 So from there, that was,

Speaker 10 I quit on a Friday and

Speaker 10 I started Saturday, Monday, and on Tuesday,

Speaker 10 I fell down. I was on this palm tree.

Speaker 9 You were in business for like a week, less than a week.

Speaker 9 Three days. Three days.

Speaker 10 So this this was my first failure, you know, going out into business. Yeah.
And I failed immediately.

Speaker 9 Yeah.

Speaker 9 Well, okay, so you fell off the palm tree, first of all. Yeah.
And broke your back. Like, what happened?

Speaker 10 So the palm tree broke and I came crashing down on a brick wall. Yeah, on my butt.

Speaker 9 So all that weight just compression right on a brick wall?

Speaker 10 Yeah, so I have a fractured vertebrae. Yeah.
So I had to get surgery on my back. I have two rods

Speaker 10 going down the middle middle and six screws that is holding together my L1 vertebrae because it had a burst fracture.

Speaker 9 So is it like, and I know you're into fitness because I know you personally and we're friends, like mobility, waking up in the morning, does that really affect you?

Speaker 9 Or are you, because you're into fitness, because you do that kind of stuff, you're able to get away with it? Or is it like every day you're in pain?

Speaker 10 No, so it just depends on what I'm doing. So I can move, you know, I do high yoga.
Yeah. I lift weights, but I also try to take care of myself.
That's why I got stem cells a couple of weeks ago.

Speaker 10 You know, I got 300 million stem cells all throughout my body.

Speaker 9 No big deal, 300 million.

Speaker 10 300 million stem cells because I'm trying to take care of myself. Yeah.
You know,

Speaker 10 so I make sure I don't drink anymore. I quit drinking, all that stuff, taking care of my body.

Speaker 9 That seems to be a common theme in the boardroom these days. is the boardroom used to be a little bit more like, hey, let's go grab a cocktail.

Speaker 9 Now it's like everyone's like, bro, let's go for a run or let's go, you know, which is super cool to see.

Speaker 9 It just means people are trying to be the best best version of themselves so absolutely love that yeah um by the way he is local here in miami that is why we are also here so uh you're in six states kind of moving into real estate you're in six states yep you're doing all through ppc all ppc um

Speaker 10 and you live here in miami yep what states are you in so we're in uh florida georgia north carolina indiana

Speaker 10 Texas and Alabama.

Speaker 9 I love those states, by the way. So if you're wholesaling, I need to buy more from you.
All right. Like a lot more.
All right.

Speaker 9 I mean, as someone who buys, I'm buying more than I'm actually wholesaling. And it's just like, it's just hard to find good deals, right? But I'll buy from agents.
I'll buy from wholesalers.

Speaker 9 I usually will only buy from board of members or my own science of flipping community. So I love all those states.
I love Texas. I just bought three separate apartments already this year in Alabama.

Speaker 9 Wow. I love Florida, of course.
I love North Carolina. So, bro, let's get us locked in with

Speaker 9 15, 100%. Yeah.

Speaker 9 See, this is another great reason to do this podcast. I need to buy more.
So,

Speaker 9 you do it all virtually. You don't have really boots on the ground per se.
Now, you might because you do enough in certain markets. But

Speaker 9 talk to that. Like, how are you doing this all virtually without necessarily an office in each one of those states?

Speaker 10 Yeah, so I mean, it was a little bit of a mindset shift when we started locking them up virtually back like two years ago. Because I remember at the time, I went to a mastermind

Speaker 10 and there was a bunch of guys in the room that were doing it virtually and I remember speaking to this one guy and I said hey how do you guys lock these up virtually you know you know nowadays everybody has to go out there and view the property first and he said bro nobody does that anymore and I was like what you know so the way that we do it is just we have leads that come inbound

Speaker 10 people fill out a form on our website and I have a team of closers and follow-up specialists as soon as the lead comes in they go ahead and call it immediately, text it, email it, engage the person on the line.

Speaker 10 And from there, we have an entire process where we're learning about their motivation, what they're trying to accomplish, just trying to figure out if they're even a good fit for us from that.

Speaker 10 From there, if it is,

Speaker 10 we have an entire script and everything.

Speaker 10 And we'll underwrite it.

Speaker 9 We'll hang up.

Speaker 10 and figure out what the numbers are, run the ARV, run the as-is, if it's going to be an ovation. From there, call them back and deliver the offer, negotiate with them back and forth.

Speaker 10 If they accept it, then we'll send out the purchase agreement and we'll walk them through the purchase agreement, make sure they fill it out both sides.

Speaker 10 From there, we transfer it over to our disposition manager. He's the one that's now in charge of sending a photographer,

Speaker 10 working with our closing coordinator to open titles, submit the deposit, make sure that we have a clean title, line up the buyer or line up the conventional buyer, And, you know, maybe 45, 60 days later, we all get paid.

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Speaker 9 I ran this model, so I know it very well, but I want everyone to know what you're doing, why you're so damn successful. That's why you're here, right? So

Speaker 9 again, check out fasthome cashoffers.com and Omar.

Speaker 9 You mentioned novations. Yep.
This is obviously in the past year, become a very big term. I'm old.
My definite novations back when we were doing it our way was you would leave the homeowner

Speaker 9 the loan and the title in the homeowner's name.

Speaker 9 You would do the remodel on the home to get to a number where you could give the seller what they really wanted because most sellers want more and we're able to give give it.

Speaker 9 And you say, well, I can't do that unless I actually

Speaker 9 gain appreciation through forced appreciation of renovation. Then I can give you a number.
And not only can I give you your number, I'll give you a percentage of the profits I make on the back end.

Speaker 9 I just need to be able to do the remodel while you still own it. That was my definition of novation years ago.
Now,

Speaker 9 essentially, novations is wholesaling on the MLS. Pretty much.
Right? I mean, that's called for what it is, which is great. I novate, you know, many of the major players now now novate.

Speaker 9 Why or how are you transitioning your business with novation? Is it like taking over more of your deal flow? Is it pretty even still where you're still traditionally wholesale?

Speaker 9 What's your business look like?

Speaker 10 Yeah, so it's 50-50, and you're right. The word novation is tossed around loosely.

Speaker 10 It is, you know, the correct term is replacing the contract, and that typically happens when you're replacing one contract, the wholesale one, to a conventional buyer, right?

Speaker 10 But even if it's it's a wholesale deal, the main benefit is just being able to slap it on the MLS. That's right.
So right now we're doing 50-50.

Speaker 10 And the way that we do it is we don't get into the fixing and the flipping kind of like you said.

Speaker 10 We underwrite the property and it's as is condition. What do we think the property can sell for it? It's current as this condition.

Speaker 10 As long as it passes financing. So it's got to have a good roof, good electrical, plumbing, HVAC, all that good stuff.

Speaker 10 And from there, we'll uh underwrite it subtract a certain percentage where we have to be at without making any repairs we factor in our fee and and just slap it on the market but you know to your point um it is tossed around loosely novation so even if you have a wholesale deal as long as you have a certain clause in the regular contract the ability to put it on the mls and just market it to the entire world yeah that's the main benefit of innovations right there yeah the attorney in fact the attorney in fact so again i think it's it's great and it's innovating what we do today because obviously you probably saw what's going down in South Carolina and making it illegal.

Speaker 9 I'm not going to go into all that because it's kind of always been illegal there anyway. So essentially, they just make you now

Speaker 9 sell a contract. Well, that's kind of what we do anyways, right? So people are blowing it up like this is a big thing.
It's not. You just need a market.

Speaker 9 You have a contract for sale and you can get away with it. That being said, this kind of frees up us investors to have an option for sellers.
Because what are your numbers?

Speaker 9 I'll tell you our numbers, but what are your numbers on a novation versus a normal cash offer for wholesale? How much different are they?

Speaker 10 You know, right now we've been getting a little better with wholesale just by negotiating deeper, deeper contracts.

Speaker 10 But if you're talking about like a regular average assignment fee, maybe that could be 15 to 20K. If you ask the rest of the industry, novations typically are a little bit larger.
For sure.

Speaker 10 They're like closer to 25 to 30, right? So I think the main benefit is also giving the seller what they want.

Speaker 9 That's right.

Speaker 10 The seller, they really don't care what you do as long as you pitch it correctly. They just want their money.

Speaker 10 So the wholesale is going to be smaller and

Speaker 10 your offer is going to have to be a lot lower. But with the novation, you say, you know what?

Speaker 10 Just dial it in the pitch. I'm going to line up my end buyer

Speaker 10 and

Speaker 10 we're going to take care of the rest. So then your fee is going to be a little bit larger, 25 to 30K.

Speaker 9 So So,

Speaker 9 what I was specifically asking, even though I think that's a good answer,

Speaker 9 bubble math numbers,

Speaker 9 our company does about 60% of ARV.

Speaker 10 Ah, okay.

Speaker 9 That's bubble math, right? That's not the perfect formula. But if we can be around 60% of ARV, that would be our offer to the seller.
Right. Right.
Right.

Speaker 9 Now,

Speaker 9 Innovation gives us 80% of list price. Roughly.
Not ARV, of list price. Roughly, it's bubble math, right? Right around the right.
Now, if I can get 70% of list price, I want it.

Speaker 9 But if I can get up to 80%, that usually mathematically creates a good profit day for me and gives a seller more of their more of their own equity, right? Correct.

Speaker 9 And so, again, if you're not doing novations, make sure to reach out to Omar, follow him on social media. We'll link everything below.
What is your hand on Instagram?

Speaker 10 It's

Speaker 10 the Omar Lopez, but it's the underscore Omar Lopez. There you go.

Speaker 9 Yeah. Make sure you follow him.
Ask him more questions about Novations and what he's doing and how you guys can all work together.

Speaker 9 I know you're doing a lot, but this gives us an opportunity to help the seller in a way before,

Speaker 9 if you can't get the cash offer done, you kind of like, well,

Speaker 9 done deal, right?

Speaker 10 Yeah. And the thing is that we had a pivot more into Novations about a year ago.
And it's also a benefit for the wholesaler because when the interest rates went up, the wholesale offer wasn't working.

Speaker 10 Everything was super hot at the time.

Speaker 10 Right? You know, you can lock up anything and sell it.

Speaker 10 So then when the market shifted, there were still conventional buyers, not so much cash buyers.

Speaker 9 That's right.

Speaker 10 So that's when we had a pivot also. So last year when we pivoted to novations and PPC was when we really started seeing things climb up.

Speaker 9 So you're doing 50-50, 50 normal wholesale cash offer, 50% novation.

Speaker 10 Yeah, right around there.

Speaker 9 Are you doing any different marketing verticals or is it all 100% PPC?

Speaker 10 It's all 100% PPC. And you run that in-house? In-house.

Speaker 9 Why don't you use an agency?

Speaker 10 We recently started playing with an agency that allows us to adjust the lead flow like we want it, but it's only PPC also. Yep.
Because we just hired new team members.

Speaker 10 So our campaigns, you got to be careful with Google campaigns. For those that know how to run them, you got to make small changes.
Yep. Because if you make a big change, it'll break your campaign.

Speaker 10 That's right.

Speaker 9 So with us, we're dialing it in a little bit slow and we're adjusting the lead flow how we want it with a particular lead broker so if someone's listening to this saying omar i want to do what you do i'm just starting what's your advice to that person right now imagine omar six years ago what kind of marketing should they be doing ppc

Speaker 10 what would you advise that person i guess it just depends on on how much money they have yeah So the way that I got started with a little bit of money, I literally just started driving the neighborhoods and looking for distressed houses.

Speaker 10 That's great. And I just searched them up and skip traced the property address, and I bought many properties like that.

Speaker 9 Did you call them or actually knock on their door? Call them. So you did what I would hope all people do

Speaker 9 is you can do this business for very little money. I mean, that probably cost you little to no money to drive around through gas money, skip trace money.
More time. And time.

Speaker 9 You're going to spend money, you're going to spend time. For us, you can spend both.
You have money and you have time. You can spend both, but you're doing what people aren't willing to do.
Right.

Speaker 9 And that I think is a little bit of a secret to your success, right?

Speaker 9 Even to the point of bring it back to when you were doing, you know, landscaping and doing your own tree business is you, you wanted to put it on your own shoulders and go put the effort in to create what you wanted to create and do what others weren't willing to do.

Speaker 9 And that's why you were able to go get deals driving for dollars because no one does it anymore. Right.
No one does it.

Speaker 9 I mean, there are literal applications to help you do it, and people don't do it. Now, I'm being

Speaker 9 a little exaggerated.

Speaker 9 Yes, there are still people that do it, but relative to how many people that you do PPC or cold call or direct mail, there's so few of people that actually will still do driving for dollars.

Speaker 9 Like, to the point, I would tell you, get someone on your team to get back to do that.

Speaker 10 That would be a great idea.

Speaker 9 Why not? It's essentially free. Right.
Pay for their gas, pay for the skip tracing. They are the acquisition agent.

Speaker 9 And you have free, like if they get one every three months, who cares? Right. Now, what you need to do is keep them in the game long enough to go get paid, right?

Speaker 9 So

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Speaker 9 What do you, you know, again, let's let's talk about this six-year journey you've been on. You started door knocking.

Speaker 9 What other iterations have you gone through to get to where you're at today, making, you know, seven figures a year within marketing, deal flow? What does that look like?

Speaker 10 When I first got started,

Speaker 10 I didn't start with my team. I just started having a team, specifically wholesale and innovation, about two years ago.
I first got started buying rental properties. So

Speaker 10 when I started driving for dollars, in fact, I actually used to be the mobile home guy back where I used to live. I know a lot about mobile homes.
Wow.

Speaker 9 Yeah. Good to know.
I'll call you. Yeah, hit me in.

Speaker 10 My biggest deals have been with mobile homes. Really? Yeah.
I've made up to 160K on mobile homes. No way.
I'm serious.

Speaker 9 That's huge. Yeah.
Okay.

Speaker 10 And

Speaker 10 so for a while, I was the mobile home guy fixing and flipping mobile homes. And I also did a lot of mobile homes where I sold them on seller financing.

Speaker 10 So I have a few nodes that are still paying me to this day on seller financing. That's great.
From there,

Speaker 10 I realized that

Speaker 10 the main money is in real estate. Yeah.
Right. So I can make a bunch of little small deals with mobile homes, but

Speaker 10 you want to be a real estate investor. So I started getting into buying houses and mobile homes with land as well.
I still own a few of those as part of my portfolio. And

Speaker 10 so when I did that, I got up to like 12 rental properties. And I remember at the time, I used to beat myself up a little bit also because

Speaker 10 all the experience that I had in the mobile homes, I thought, oh man, I wasn't a real estate investor. I'm not a real estate investor.

Speaker 10 But that experience with the mobile homes is what allowed me to make those big rips 100K plus with the experience that I had.

Speaker 10 So from there, about two years ago was when I decided to get my team and get in office because I started running out of money. Oh, yeah.
I started getting equity rich.

Speaker 9 Yeah, I was just going to say,

Speaker 9 if you're taking all your cash and putting it in, you're getting equity rich, but you have no more money. Right.

Speaker 10 When I least expected it, I was a millionaire in net worth, but I was cash poor. Right.
So I said, all right, I got to flip the wheels back.

Speaker 10 And now I'm going to focus on building a machine with generating active income through wholesaling, flipping, novations. And that's been what's going on for the last two years with my team.
Okay.

Speaker 9 Yeah. So you started buying rentals.
Do you still have them all or did you sell them off? Or what did you do? I sold off a few.

Speaker 10 So we have six now.

Speaker 9 Okay. Yeah.

Speaker 9 I always advise people to buy rentals fast. So I like that you did that.
Buy them early. My biggest mistake I always say is not buying rentals early enough.
However,

Speaker 9 the way you did it is how I advise not to do it because it is very easy to go get wealthy but cash poor. Right.
That doesn't help you. It doesn't help your business.
Right. It's the long play.

Speaker 9 I understand that. But even to the point where you should have been wholesaling it to yourself.

Speaker 10 Absolutely. Right.

Speaker 9 You should have an entity that contracted it, sold it to your other holding entity for a $10,000 assignment and made the money. even if you did that, at least you should have been doing that, right?

Speaker 9 Right. Really, what you should be doing is not using your own money.
That's the money.

Speaker 9 Right.

Speaker 9 I just went out and raised, I don't even know how much, but like, I had to go get $500,000 because I came in a crazy circumstance that like one of my equity partners that owned the property with me had to exit.

Speaker 9 Crazy scenario. So I was like, well, damn.
Okay, that's a big chunk of money. It's not 50 grand.
So I went out and within one day, I raised $500,000,

Speaker 9 none of my own money.

Speaker 10 So that's how you buy all your properties just by raising money right now? 100%.

Speaker 9 You should be doing the same thing.

Speaker 10 You don't use any of your active income? None.

Speaker 9 Wow. No one should.
You shouldn't. I shouldn't.
Nobody. No one in boardroom should.
It should all be raised capital. And so, and this is something I'm happy to show you, but

Speaker 9 you should be building a portfolio. And it has to make sense for the lender and for you, right? So what you can't go do is you can't go out and raise capital unless you use 10% interest as a number.

Speaker 9 And

Speaker 9 whether it's an apartment, single-family home, whatever, it's not performing. So now you're still debt service coveraging the 10% every month.

Speaker 9 So you have to make sure you're underwriting it in a way that you can structure the debt.

Speaker 9 So a great example, what I would encourage you to do, especially on bigger properties, if there's an apartment or a four-unit, five-unit, bigger,

Speaker 9 defer the interest

Speaker 9 for a year and then do a refi and pay them off. You can do the same burr method on a single family home and you can do it in an apartment as well.

Speaker 9 But nobody, in my opinion, should be using your own active income to buy rentals.

Speaker 9 Good, good.

Speaker 10 That's a good point right there.

Speaker 9 And so that will help everybody move their wealth accumulation faster. The key will be is how do you go find the money, raise the money, structure the money?

Speaker 9 That's where people go, well, great, Justin, now what the hell do I do? Well, and I can help you. And obviously my community members get that kind of coaching, right? But

Speaker 9 happy to help you, dude. Absolutely.
Because you should keep buying rentals. I don't want you to, and that's why I asked specifically if you sold some or didn't sell some.

Speaker 9 I want you to keep what you have, but then, and by the way, you might even keep what you have and do a

Speaker 9 liquidation event or a liquidity event. So what I mean by that is you might go in there and say, I'm going to use fake examples.
You have six rentals left.

Speaker 9 Let's just say you have 100 grand of equity on each. I'm using fake examples.
$600,000 of equity. You call Justin or anybody.
Say, hey, Justin, I want to bring you in on ownership on this rental.

Speaker 9 You want to be a part owner? I've already done the hard work. I bought it.
I remodeled it. I tenanted it.
It's performing at this.

Speaker 9 Give me, you know, 50 grand and I'll bring you into ownership on this one rental right here.

Speaker 9 Okay.

Speaker 9 Well, now you have 50 grand back in your pocket.

Speaker 9 You have a partner on a property that's making you $300,000, $400 a month, and the bigger payday when you sell off, but now you have $50,000 back in your pocket. What can you go do with $50,000?

Speaker 9 Can you go buy another flip? Can you do a seller-finance note that gets better returns than the rental? What can you do with $50,000?

Speaker 10 So essentially, what you're saying is just leverage the properties.

Speaker 9 Yeah, but you bring them in as an owner. Okay.
You can bring them in as debt, but bring them in as an owner.

Speaker 9 So again, I'll just use the example. Let's say you own a home, you know, it's worth $200,000, it's rented, it's bringing in $1,800 a month, you have 100 of your own cash into it or equity or equity.

Speaker 9 Right. Right.
So you say, hey, I'm going to sell off 50% or 50 grand worth of equity. I'll give you 20% ownership for that.
Right. Or technically 25

Speaker 9 because it's worth 200. You're going to give me 50 grand, which is 25% of 200.
I'll give you 25% ownership in this rental. You'll have 25% of the net revenue.

Speaker 9 You'll have 25% of the profits when I sell it, et cetera.

Speaker 10 Yeah. Yeah, that's been one of my main questions that I've had myself.
You know, what's the right balance of, you know, keeping properties or how to keep buying more?

Speaker 10 Because some of these properties that...

Speaker 9 Even if you did that, for example, even if you didn't fully listen to what I'm saying to you and you took that 50 grand and bought another rental instead of just putting it in your pocket, well, now you have two rentals instead of one.

Speaker 9 Right. See what I'm saying? Yeah, I hear you.
Rinse or repeat that. But also, the other thing I would advise you or anyone is run the Burr model.

Speaker 9 Don't buy a rental property. Here's what you probably see this all the time.
Subject to wholesale fee, 30% down, right? You see this all

Speaker 9 like to me, that's nonsense. I'm going to just stick, the whole reason you're doing subject to is because the loan is great.
It's 3%. You're like, I want that loan.

Speaker 9 Yeah, but you're going to put $60,000 down and you're going to sink it into that home because you're not going to refi because you want the loan.

Speaker 10 So now you have 60 grand into this home.

Speaker 9 What are you doing?

Speaker 9 People like you and me and people that know how to move money, we can move money in a way better return on investment than sinking 60 grand into that home. Right.

Speaker 9 So I don't want any of your money into those homes. Right, right.

Speaker 10 So are you buying in multiple areas also? Yeah. Like even single families or are you focused primarily on multifamily? Single family and multi-noried about sticking it to specific markets? No.

Speaker 9 Well, so I actually stick to basically the same states you do. North Carolina, South Carolina.

Speaker 10 But there's literal markets there, right? You're just buying everywhere?

Speaker 9 Got it. Now, respectfully, I'm like, I'm not buying in rural areas, right? I'm sticking to the major cities like Birmingham, Alabama, Oklahoma City, Dallas.

Speaker 9 I just bought one in San Antonio, just bought one in Pensacola. So Pensacola, some people might think, is rural, but it's not.

Speaker 9 People need affordability. Miami is way too expensive.
Yeah. Right? Yeah.

Speaker 10 And yeah, why wouldn't you just stick to a specific market? Like

Speaker 10 maybe just buy all in Pensacola, per se?

Speaker 9 We could.

Speaker 9 And I think about it, but I just think there's a lot of opportunity with markets that I'm in that a good deal is a good deal.

Speaker 9 And, you know, because I've run a business just like you, it's virtual, right? So if I have resources in these markets,

Speaker 9 I feel totally comfortable buying in those markets. Got it.
Right. So I buy through the whole state of Florida.
Ironically, I've never bought a deal in Miami.

Speaker 9 It's just not the best market for that right now.

Speaker 9 But

Speaker 9 I love Alabama right now.

Speaker 9 I love Georgia. I love Oklahoma.
These are all great markets because there's still affordability.

Speaker 10 And you just deal with different property managers. Or I'm sure you have somebody that deals with them.

Speaker 9 Yeah, so I have an in-house, I don't even know what you would call her, agent and property manager relation.

Speaker 9 So her name's Megan.

Speaker 9 Her whole day is focused on agents on our listings or our buys,

Speaker 9 escrows. She's not a TC, but she'd make sure when we're funding or selling and make sure our TC has all the stuff for me to sign.

Speaker 9 All things to do with property management and agents. So she is a, that's her entire job.
Wow. Right.
But we're buying two to five properties a week and we just bought three apartments.

Speaker 9 Like, so it's full time. I mean, yeah, and you keep her busy.

Speaker 10 Yeah.

Speaker 9 For sure. Yeah.
Good. So what do you see yourself doing now? to finish this year.
It's midway through 2024, which is crazy to even think about. But

Speaker 9 how do you see your business shaping? Have you seen an effect on what's going on at the interest rates? Are you doing anything different? Are you pivoting? Are you doubling down? What are you doing?

Speaker 10 So, the one thing that we are doing is

Speaker 10 trying to get more focus to Florida.

Speaker 9 Okay. So, that's our goal.

Speaker 10 So, slowly we're reducing the number of states, and we'll be in Florida. And we're also going to put some

Speaker 10 like direct mail into Miami. Yeah.
You know, I want to tap into this market. Yeah.
So, we're aiming for 1.8 million in revenue this year.

Speaker 10 And

Speaker 9 By your one goal?

Speaker 10 I think we're like maybe 40%,

Speaker 10 like, how do I say this? Slightly off target.

Speaker 9 Yeah. So you're at 8,800 grand so far for the year, essentially.
Right. Right.

Speaker 10 So

Speaker 10 that's going to be the main thing, getting more focused and adding a different marketing channel also, because I don't want to be relying strictly on PPC.

Speaker 9 I'm so happy you said that. You should have three.

Speaker 9 Three. Two is better than one, but you should have three.
Because again, whether it's driving for dollars, that's a marketing channel. Right.
Whether it's agent outreach, that's a marketing channel.

Speaker 9 Whether it's co-wholesaling, that's a marketing channel. If someone else went and found the deal, you find the buyer.
Or maybe you are the buyer, right? Yeah.

Speaker 9 Or you know, I'm the buyer and you know I love, let's just say, Birmingham or I love Pensacola or wherever. You're like, hey, Colby, I'll make two grand on this, but I think it's a pretty good deal.

Speaker 9 Like, just go get the deal done. It's a marketing vertical, right? Absolutely.
So you should always have three. Yeah.
Just

Speaker 9 only working one is short-sighted. It can work,

Speaker 9 but you will have, because you know this, PPC sometimes just shits the bed. You know, and you go, now what?

Speaker 10 The thing is that you're just relying on that one channel. And let's just say that something happens to that one channel.
Yep. Then there goes your leaf flow.
That's right.

Speaker 9 Yeah.

Speaker 9 You and I are both friends with Nick Perry. What did you learn at his mastermind in Cancer?

Speaker 9 What was your big takeaway?

Speaker 10 So

Speaker 10 one of the big takeaways was

Speaker 10 this guy that

Speaker 10 he's very aggressive with the way that he does business. And, you know, this might sound

Speaker 10 a little hard, but he even will sue sellers if he has to, right? I mean, like, if they want to back out of the contract.

Speaker 10 But I think it was just a mindset of just being able to hold your ground and just being more tough, you know, recording the memorandums on the property,

Speaker 10 defending your contract at all costs. I think, you know, in this industry, it's very easy for sellers to go and shop around.
Of course. And so they might not take you as serious.

Speaker 10 So just having that tough mentality of being able to stand your ground, you know,

Speaker 10 record the contract with the county, or if it comes down to it, if it's a really good deal, if the seller's not taking you serious, and if you have to, you know, take them to court, then, you know, just.

Speaker 10 stand your ground.

Speaker 9 I mean, your business is your business. It's your base.
It's your livelihood. It's how you put food on the plate, right? Absolutely.

Speaker 9 So I can understand that for sure.

Speaker 9 And you know that everyone's shopping deals, all the sellers now.

Speaker 9 How many other people are in the world trying to give a higher offer because you got it contracted at 100? They'll offer 105.

Speaker 9 You're like, great.

Speaker 10 Especially with PPC. Yeah.
With PPC, they're filling out multiple forms at the same time. That's right.
So when they're contacting you, they have other people contacting them at the same time. Yep.

Speaker 9 Yeah. So you're going to go direct mail.
Are you going to do direct mail to the lead you already brought in from PPC or brand new, you know, lead gen direct mail?

Speaker 10 Brand new. Cool.
Yeah, brand new. I'm trying to focus on South Florida specifically.

Speaker 9 How much are you going to spend in direct mail?

Speaker 10 I think we'll test that out for another 10K. Okay.
Yeah.

Speaker 9 But you got to be consistent. Right.

Speaker 9 You can't throw 10K, see if it works, and then quit, right? You got to go.

Speaker 9 I tell everyone, you got to go three months or don't do it. Because you just don't have the runway you need to measure direct mail if you do anything less than three months.
Got it.

Speaker 9 So, so whether you can still sustain 10K or not, maybe you adjust that number.

Speaker 9 If you're going to do it, do it, but don't do it for a short amount of time. You got to run for 90 days.

Speaker 10 Yeah, you know, it's kind of hard to leave PPC right now because with the 5X return,

Speaker 9 it's an and, it's not an or. Right.
Don't take away from your PPC budget. That'd be silly.
You just got to add on to the direct mail budget. Yeah.

Speaker 10 Direct mail is the next marketing channel. And then I I think just opening up a JD branch as well.
Nice. You know, just having that's why I'm trying to focus on my brand right now.
Yeah, yeah.

Speaker 10 You know, have other wholesalers reach out to us, other realtors.

Speaker 9 So you heard that right here, right now. If you're a wholesaler in Florida, make sure you're reaching out to Omar.
Or realtor. Or realtor.

Speaker 10 You know, they have deals also.

Speaker 9 That's it. Yeah.
Make sure you reach out to Omar.

Speaker 10 Absolutely.

Speaker 9 Okay, so you're going to open up a division

Speaker 9 direct to

Speaker 9 investor. Right.

Speaker 9 Are you going to open up a division direct to agent?

Speaker 10 I think it'll be the same one. Okay.
Yeah.

Speaker 9 And I wouldn't tell you, everyone should be doing that. That's the right thought process.
Right. All these things are ands, they're not ors.
So keep doing that. Right.

Speaker 9 And so you're projecting 1.8 to finish in the year. Yeah.

Speaker 9 You're at 40% of where you should be right now. So let's just say you're.

Speaker 10 Right now, if we stick to where we're at, we'll finish at 1.4. So we got a little bit of work to do.
Yeah.

Speaker 9 Yeah. So you're at 700 grand for the year so far.
If you did the same thing, you'd be at 1.4. Yep.
Okay.

Speaker 9 But novations probably helped that a lot.

Speaker 10 It did. Yeah.

Speaker 9 Yeah.

Speaker 10 Just having that extra exit strategy has really helped us over the past year.

Speaker 9 Well, there's three things. Well, there's two things.
You need diversity in your exit. You need diversity in how you acquire.
So it sounds as if you're already getting diversity in your

Speaker 9 marketing. Right.
ABC, direct mail.

Speaker 10 Is that what you mean by when you acquire?

Speaker 9 Yeah. Okay.
How you you find the lead. Got it.
Marketing. So diversity in marketing and diversity in how you exit.
So what I would encourage you to do is go find another exit strategy.

Speaker 10 Right. That's why

Speaker 10 the goal with doing deals down here in South Florida is to do some fix and flips.

Speaker 9 Yep.

Speaker 10 Because what we're not doing.

Speaker 9 You know the market. You can trust the market.
Yeah, yeah, yeah.

Speaker 10 So I used to do more fix and flips out there in Southern California. Now, since we're all virtual, we do a couple of the fix and flips virtual.

Speaker 10 And I mean, they can can be successful if the numbers make sense, but it just makes more sense to have a local contractor, build the relationships with the market that you understand.

Speaker 9 You're not wrong, brother. I still, to this day, I still have contractor troubles.
There's no doubt about it.

Speaker 10 And you do them all over the state, too, flips, right?

Speaker 9 Yeah, yeah, yeah.

Speaker 9 So from Oklahoma to, again, Pensacola to, I think we're buying one right now in Fort Myers, down,

Speaker 9 or I guess up now

Speaker 9 west.

Speaker 10 And you're fixing these up if they need.

Speaker 9 If I buy a rental, I fix them up. I fix up every single one of our properties.
The reason why is, remember, I said you need multiple exits.

Speaker 9 So I could either keep it and refi it as a burr because I added the value or I could fix and flip it. So

Speaker 9 I need any property I buy to be

Speaker 9 in the box of it's a good rental and it's a good flip.

Speaker 10 Got it, got it.

Speaker 9 So that makes it, that's what I'm saying. You make

Speaker 9 it harder for me to be willing to buy. So some like, send me your deals because it's hard because not every deal, some are great rentals, right? But you're like,

Speaker 9 this is a terrible fiction flip. It's a great rental.
Yeah. Right.
I'm buying too high. That's a good point.
So I wouldn't buy that.

Speaker 10 Having the end in mind when you first acquire the property, because if you don't fix it up, then,

Speaker 10 you know, you have a less exit strategy. That's right.
So you just got to make sure that you're setting yourself up correctly. Yep.

Speaker 9 Yeah. So

Speaker 9 it sounds like you are on a trajectory to do some good stuff. How are you seeing this next phase, right? Six years, you're not a rookie anymore.
You've been doing some stuff.

Speaker 9 I'm sure you have some scars to prove it.

Speaker 9 How do you see this next kind of phase of your journey? Where do you see yourself maybe pivoting? Why, if at all, right?

Speaker 9 Do you want to, sounds like you want to shrink in, get a little bit more localized to at least Florida, maybe even to Miami?

Speaker 9 Talk about kind of where you see yourself going and the iteration you're going to go through.

Speaker 10 Yeah, so right now our goal is to make sure that we have good leaders in our company, right? Having good people.

Speaker 10 So, you know, anybody out there that is looking to join a great team, you know, if you're a good leader,

Speaker 10 you want to be part of an amazing company, fast on cash offers, reach out to us.

Speaker 9 So have. Hit him up on Instagram, probably is the best place, right? Yeah, hit me up on Instagram.
Omar-Lopez. Is that the

Speaker 10 underscore Omar Lopez?

Speaker 9 The underscore Omar Lopez. Yeah.

Speaker 10 So that's what we need. Good people, good leaders.
And that's going to be the next phase that I'm going to be pivoting to to make sure that we get out of this momentum

Speaker 10 stage and really start focusing on the business.

Speaker 9 But, bro, you know what's funny? If you really take a look at like, again, I'm removed from your business, right? Right.

Speaker 9 Think about what you're saying and think about where your friends are at in life for a second. Okay.
Six years ago, essentially, you were broke.

Speaker 10 I was.

Speaker 9 You had a broken back.

Speaker 9 You had to get surgery. Six years later, you're on pace to do $1.4 million in revenue, and you have a goal to hit 1.8.

Speaker 9 Isn't that kind of fucked up?

Speaker 10 It is.

Speaker 9 Like, why are you different?

Speaker 10 You know, I ask myself that all the time, you know, and I think.

Speaker 9 What are you doing different? I mean,

Speaker 9 they breathe. They have a heartbeat.
They blink.

Speaker 9 Why is Omar different?

Speaker 10 I'm determined, bro. I'm determined.
I'm relentless. You know, I have my parents that rely on me.
And, you know, I have a mission to be the best man possible.

Speaker 10 You know, I'm a firm believer in staying well-rounded with faith, family, fitness, finance. You know, I quit drinking.
You know, I'm on a mission right now. Yeah.
I'm on a mission, right?

Speaker 10 I do hot yoga. I have the ice plunge at my house.
I'm looking to stay dialed in in all aspects of life. You know, I'm just getting started right now.

Speaker 9 Hell yeah, bro. Well, I'm so excited you're on this podcast.

Speaker 9 If you have deals, hit them up on Instagram. If you are looking to work for a a great company, hit him up on Instagram.
He is the real deal. He is a friend of mine.

Speaker 9 So excited to have you featured on this podcast, my guy. Thank you, bro.
Right on.

Speaker 9 All right, guys, that is this. That is it for this episode.
We are going to be back with another guest on the next episode. See you there.
Peace.

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