Episode Transcript
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Speaker 1 (00:08):
welcome back to
wholesaling around the world.
The ohio edition now.
Ohio is one of my most favoritestates to wholesale in its
third most highest volume fortitanium investments.
And it's funny becauseoriginally, when we started
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expanding virtually, ohio wasprobably in the top 10 states we
identified that we wanted toexpand to.
But early on I despised Ohio.
I despised it because it feltlike everything was a small
assignment fee.
The properties were somewhatdifficult to underwrite,
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especially in comparison to ourhome state, texas.
But over the course of timeI've learned that the value of
Ohio is in the different citiesthat you can wholesale in, where
other states they they lackthat opportunity right, like if
you look at indiana, for example, the, the big major metro is
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indianapolis.
Now it has other smaller citieslike fort wayne, evansville,
things like that that you canwholesale in fairly decently.
But Ohio with it havingCleveland, columbus, cincinnati,
dayton, toledo, akron, theseare all great areas to wholesale
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in and areas that we've donevolume in, and so it just gives
us so much opportunity there.
And then the price point isgreat, right?
The price point works for bothflippers or landlords and that
is an ideal wholesale marketwhere you're always looking for.
Now Ohio is the seventh mostpopulated state with 11.9
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million people.
So it's not too entirelysurprising that it would be one
of the better states towholesale in, because just of
the population.
But when you really break down,looking on the map and just our
personal volume, the twolocations that we've done the
most volume in is Cleveland andthen the Cincinnati and Dayton
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metro areas.
Now I kind of combine thosebecause we've done deals in
Middleton or Middletown I don'tknow how you say that really
Hamilton, mason, fairfield, allof that in between the Dayton
and the Cincinnati markets.
So even though it's furtherspread apart, cincinnati and
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Dayton kind of remind me of likethe Ohio version of Dallas-Fort
Worth, like they're closeenough where they kind of mingle
together, where there are somebuyers that will buy in both
Cincinnati and Dayton.
And that's the other thingabout Ohio that's just great is
the fact that in all theselocations there's plenty of
buyers throughout all theselocations there's plenty of
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buyers throughout.
Now the largest city, columbusis, is not where we do a lot of
volume.
I say largest.
I guess cleveland could also beright up there.
I actually don't know whichone's larger, I've been to both,
but columbus is the one thatwe've done the least amount of
volume in.
I think it's because it'sprobably just a little bit more
competitive there.
Also, I just have seen lessleads, especially on the PPL
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side, come across in theColumbus market.
Any deal that we have gotten inColumbus has been a pretty
decent one, but that's just thearea that we've done the least
amount of deals Now in regardsto those larger cities to
wholesale in, the two that areprobably the most difficult are
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Toledo and Akron.
Now, toledo it's because theprice points are just so low in
certain neighborhoods that A lotof times that the property is
any physical distress element toit, it just doesn't have enough
money in it to be profitable,and so there's times where a
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deal can almost not be wholesalebecause there's just not a
buyer out there.
That does happen in Toledo andnot as common in Akron.
But Akron is also a little bitmore difficult to dispo in than
say, a Cleveland or a Cincinnati.
I've actually owned a duplex inAkron for quite some time.
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It was.
It was profitable.
The cash flow is good.
The cash flow is good in almostall of these markets across
Ohio.
But the thing that has reallymade me fall in love with Ohio
is that throughout the entirestate.
When we run nationwide PPLwhether it's property lead,
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speed lead or lead Zolo we getleads in what people consider
rural locations Inside of thestate of Ohio.
No matter how rural it reallyis, we can still find buyers and
that is very unique to Ohio incomparison to some of the other
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Midwest or Sunbelt states thatare comparable.
Right, like if you take aMissouri or a Kansas, there are
times where you can be so ruralthat there's not a buyer
specifically in Kansas.
Ohio, we're still.
It might take us a little bitlonger to do the dispositions
and locate that buyer, but weare able to move or at least
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locate in buyers in almost allof the locations throughout the
state of Ohio.
That is the main reason whyI've really fallen in love with
the state of Ohio, because, as anationwide investor, I want the
cheapest leads coming in.
I want the $30 property leads,I want the $29 speed of lead and
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that's where we're going to getdeals in.
You know, portsmouth or Athensor what is this?
Zanesville, right?
Cambridge, senecaville theseare places that we've done deals
.
Orange, senecaville these areplaces that we've done deals.
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Martin's Ferry right on theborder there, wellsburg is
another location.
These are not places, when youthink of the state of Ohio, that
you're going to think like,yeah, I'm going to buy a lead
there because I know an endbuyer.
But leveraging the technologythat exists nowadays has allowed
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us to be able to wholesale inall these different locations.
Now, one of the negative thingsabout Ohio is that it does look
like there are going to be moreand more regulations coming down
the pipeline going to be moreand more regulations coming down
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the pipeline as of June 5th2025, so just a couple of months
ago, the Ohio Senate passedSenate Bill 155, sponsored by
Senators Andrew Brenner andKatherine Ingram, to require
real estate wholesalers to makecertain disclosures to property
owners before entering into acontract that conveys an
interest in residential realproperty.
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What they went on to say wasreal estate wholesaling targets
some of Ohio's most vulnerablehomeowners through predatory
contracts, misleading salestactics and clouding titles to
properties.
This legislation increases thetransparency surrounding the
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wholesaling process by requiringwholesalers to disclose to the
homeowner and end buyer theirtrue intentions.
This bill provides assurance tohomeowners that they will be
making a fully informed decisionwhen they enter into a contract
to sell their property.
Now, the reason why this isunfortunate is the fact that our
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government is having to step inand say this about our industry
because of our own actions and,quite frankly, when you read
the quote there predatorycontracts, misleading sales
tactics, clouding titles toproperties these are the things
that I have been speaking outagainst for years now.
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Why do we have to lie anddeceive and manipulate sellers?
If you are following peopleright now in our industry that
are teaching you to do this,your time is limited.
You're following the wrongpeople.
This is why I havedisassociated myself with these
people inside of our industry.
If you want to do this bullshit, then you are the reason why
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our industry is being attackedand one of the best states and
the entire United States ofAmerica is now coming out and
saying we are having the mandateof regulation, where you have
to tell the truth to thehomeowner and to the end buyer
what your true intentions are.
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It's pathetic that ourgovernment felt it necessary to
step in because leaders in ourindustry have continued to tell
you to lie and deceive andmanipulate.
If your business foundation isbuilt on that, then your time is
limited and it's unfortunatethat you even thought that that
was necessary, because it hasnever been necessary to lie,
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deceive and manipulate.
So if you're doing the fakeunderwriter, if you're doing the
fake finance department, ifyou're always filing memorandums
on properties, you're deceivingand manipulating and doing that
stop.
You don't have to follow thesepeople.
Majority of the people thatcome in and they do this.
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Their time is limited anyways.
It's why they come and they go.
They're fly-by-nightwholesalers, because they never
actually truly built asustainable business, because
everything that they did wasbuilt on a lie.
So it's unfortunate that thisis happening, but it is
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necessary because we need to ridour industry of the people that
believe this is what we need todo.
So overall, I love Ohio.
I have no problem with thisregulation because I have no
problem disclosing to ahomeowner and an end buyer my
true intentions.
So we will continue to do highvolume in the great state of
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Ohio and I just wish that beforeevery state in America has to
come out with this type ofregulation, we as an industry
fix it and police it ourselves.
If you're following someone oryou're learning from someone
that tells you to do this, askthem.
Why do you think the senatorsin Ohio are saying that we are
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misleading sales tactics,predatory contracts, clouding
title to properties.
Why do you think they'reattacking our industry?
And see what your leaderactually says.
Let me know what you guys thinkin the comments.
Show me some love.
Let's go do some deals in Ohio.
See you guys tomorrow.