April 24, 2024 • 27 mins
Thank you to inspectify.com for sponsoring this episode
Summary
Victor Rybachuk shares his journey into real estate wholesaling and how he built his business, I Will Buy House. He started in nursing but found his passion in real estate. He explains that wholesaling is about marketing and sales, not investing, and emphasizes the importance of standardizing and optimizing before scaling. Victor discusses his marketing channels, including Google PPC and SEO, and the importance of building a large buyers list. He also talks about the future of wholesaling and the potential for disruption in the industry.
Takeaways
- Wholesaling is about marketing and sales, not investing.
- Standardize and optimize before scaling your business.
- Building a large buyers list is crucial for success in wholesaling.
- Innovation and disruption are on the horizon for the wholesaling industry.
- There is a massive under supply of inventory in the market, creating opportunities for wholesalers.
Chapters
00:00 Introduction and Victor's Journey into Wholesaling
07:24 Standardize and Optimize Before Scaling Your Wholesaling Business
16:22 The Future of Wholesaling: Innovation and Disruption
Contact Viktor
Instagram: Viktorglg
Facebook: viktor.rybachuk
www.iwillbuyhouse.com
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:02):
All right, welcome back to the WashingtonState real estate investing podcast.
I'm so excited to be joined by Victortoday.
Uh, Victor, uh, runs the website, uh, andthe business I will buy house.com.
Uh, and we're going to dig into hisbusiness here in real estate, uh, up and
down, uh, the five die five, uh, I fivequarter kind of, uh, and even on the over.
(00:26):
and the East side of the West side of thestate in the Bellevue area, that kind of
area as well.
So Victor, welcome to the podcast.
As we get started, talk a little bit aboutwhat inspired you to start, I Will Buy
House, and how did you start to build thisbusiness?
Well, I had a career that completely madeit very parallel, very easy to get into
(00:47):
real estate.
It made a lot of sense.
You get your degree in nursing, you go towork at the hospital for seven years, and
that primes you for real estate.
I mean, that's the best thing you couldever do.
No, not at all.
is.
(01:08):
No, so really, I mean, I got into realestate and, you know, wholesaling because
I looked at a lot of other options of,I've always had like the entrepreneur bug.
I mean, as a kid, I had a joke that I waslike going to create a company called good
day corporations.
And you know, I didn't get into business.
I honestly probably should have becausejust the personality that I am right now,
(01:30):
I'm like, Oh my gosh, what were you doingin nursing?
But everything has a purpose and that's,that's where it kind of led.
Mm.
So I did, I did all those things.
I went to WSU, go Cougs.
Then I got my, oh nice.
There, I knew I liked you for a reason.
That's why.
Uh, yeah.
So I went to WSU, got my degree in Spokanefor the nursing program.
(01:54):
Then yeah, went, worked as a pediatricnurse for seven years in San Altares
hospital, loved what I was doing.
It was very rewarding, very fulfilling,but I wanted more to me.
To me, working the hours that I did thenight shift was grueling.
I'd work, I'd work sometimes 10 hours,sorry, 10 days in a row.
(02:14):
And now I work more.
Exactly.
I don't get a day off.
So yeah, no, it's kind of like that funnymeme is like, I quit my nine to five day
job and now I work 24 seven.
Yep.
It's owning your own business for sure.
And then really it was just, you know, Ilooked in becoming a doctor.
(02:36):
That didn't work out.
I wanted to be what's called a nurse atthat nest at this.
Nesseth this.
I don't know.
I don't even know how to pronounce itanymore.
And I was like, I, it's not for me.
And then I saw this thing called risk.
Like, ah, come on real estate.
That's like for that's typical Russianthing.
I'm not going to do that.
It's kind of like getting cars, fixingthem up and selling out.
(02:57):
That's so stereotypical.
I'm not doing, I'm not doing remodels onhouses.
because I had just had a bad connotationto it.
But there's tons of money into that, tonsof money.
I didn't know that.
And then I was like, okay, well, this isinteresting.
Keeps copying up on my search of like howto make money.
Because I literally Googled, how do I makemoney?
(03:18):
And there was like a post of like variousthings to sell, like sell books, garage.
I'm like, I'm not gonna do garage salesand I'm not doing that.
And then I went, it just kept coming upreal estate.
I was like.
Okay, I gotta look into this.
I gotta let this, you know, pre-seekingthe notion down and see what real estate's
all about.
(03:40):
Then I read some books, I went to awebsite and after website, I read some
stuff on blogs.
I went to a meetup and that was like,okay, this is interesting.
And I heard a thing about wholesaling.
I was like, what is this?
I've never heard of this, this is weird.
And they talked about like you could getinto real estate with no money.
(04:01):
I'm like, well, it's not that I don't haveany money.
I have very little of it.
So how can I get more money to buy my nextword to buy my flip?
Then I went to a couple of like weekendclasses and this is me without having kids
yet, went to a couple of, went to a coupleof classes and they were talking about
wholesaling.
I'm like, I could do this.
So I'm going to do three, three wholesaledeals.
(04:22):
I'm going to get enough money and thenI'll do my first flip.
10 years later, I am still wholesaling,barely flipping, and very deliberately,
and I did do a couple of deals.
So the first deal, I made like 13,000.
(04:43):
I was like, yes!
That was my first deal, I made 13,000.
That was like proof to my wife, like, hey,there's money into this.
This took me, at that time it took me likesix months to do that, or nine months to
make that kind of money.
but it was like an aha moment of, oh mygosh, this is one deal.
You just made four months of a salary as anurse at that time in one deal.
(05:04):
How can you repeat this?
That was like, okay, my wife was like,okay, you made that money, pay us back.
Then you can reinvest whatever you wantback into what you're doing.
And so she let me do my thing.
And I noticed that at some point I waslike, okay, my interests are not aligned.
working seven, seven or sometimes 10 daysin a row, night shift, I'm coming home at
(05:28):
seven a.m.
So I was getting off of shift seven a.m.,coming home around eight, talking to
sellers, then going to bed, waking up atthree, four o'clock, going to the gym at
work at seven p.m.
and repeating that all over again.
So I was like, something's gotta change.
And the funny thing is I saw a proof ofconcept, not that I could completely
replace my income with wholesaling, but Isaw a proof of concept.
(05:50):
And I was like, okay.
You got to prove a concept, it'sproducing.
And as soon as I pretty much quit my job,I got two massive deals, like $64,000 and
$42,000.
So that to me was awesome, but it was astruggle after struggle.
Don't think that there's a happy ending toit, because there ain't.
Because it was like figuring this out.
Really, wholesaling is about marketingsales.
(06:11):
It's not about investing.
People stop lying to yourself that youcall yourself an investor.
You are not.
You are not an investor.
You are a day trader.
You are...
you're trading your time for money.
And that's what wholesaling is.
And I get that.
I understand this.
I am not into real estate becausehonestly, because I could take my same
skill sets.
I could go sell, let's just call itsurgical supplies.
(06:33):
I could go sell the next app that comesout, or I could sell a widget, go buy
something on Amazon and sell that widget.
Because it's all marketing and sales.
That's what wholesaling is.
It just so happens to be in the space ofreal estate.
And so, you know, 10 years later, I'mstill figuring this out.
I don't have it.
I mean, I have, you know, over 500 dealsthat I've done, but I'm still figuring
(06:54):
out.
I'm still like, okay, what's the nextthing that I need to be focusing on?
How can I improve what I'm doing rightnow?
So yeah, that's how I kind of transitioninto real estate.
cool.
I love it.
Everybody's is everybody has such a greatstory of how they how they got into real
estate from whatever your background waswhen you got started.
So in a year now, so say here in 2024, howmany how many deals are you?
(07:20):
Do you have a goal of how many deals youwant to do?
How many houses you want to you want toget under contract?
Yeah, I mean, I'm spending about rightnow, it's roughly around like 50,000 a
month in marketing.
So if you do the math, if you're saying,okay, if you're going to spend 50,000 in
marketing, what should you produce fromthat marketing spend?
And I like to use a simple rule.
(07:41):
It's not, it's anything special.
I don't like the 70% rule.
I think it's not very good, at leastespecially accurate in our market, but
it's like a rule of thumb.
So if you're spending 50,000, you shouldbe making at least four X that.
And just in gross revenue, not profits,but gross revenue.
So you do the math, right?
You should be making at least 200,000 amonth.
(08:01):
And that for me is like, that's like a Cminus.
That's not like great.
Where I truly wanna be is a million amonth.
So a million a month, it means I'mspending over $200,000 in marketing spend,
probably closer to, yeah, 250 is where Iwanna be spending in marketing spend.
So I'm gearing myself for that and youknow.
(08:24):
Before you can scale, you need to first,you know, standardize and optimize before
you can scale.
Because if you're gonna scale and youdon't have standard and optimize done,
you're gonna scale the wrong thing.
Whatever your problems are now, they'rejust gonna be magnified when you try to
scale.
Yeah, a lot of people are like, oh, Istarted a business, now I wanna scale.
It's like, oh, hold on a second.
(08:45):
Standardize first, figure this out, makeit repeatable.
I love that.
And so when you're marketing, what are allyour marketing channels to get homes under
contract?
Right now it's mainly Google.
PPC is the main one that I'm working on.
That's the main one.
We do cold calling texting, which isprobably going to go away to be honest
(09:06):
with you.
Texting is on its way out.
We've already been flagged and it's notour fault.
We were compliant, but the company who wasusing our account, they weren't compliant.
And so we got banned.
It's like, we were following the rules.
Why are we in trouble?
It was frustrating.
So we're just now on the tail end of that.
(09:26):
We got reinstated last week.
We're going through the process ofBuilding up our credibility.
So we're texting.
We're also doing paperly channels and myone of my favorite ones SEO God, I love
SEO.
I just I wish I could be better at SEOthan I am now But yeah SEO is a great one
to be had
on, just on Google, basically then you're,are you paying for sponsorship spots on
(09:49):
top of SEO?
You mean like you mean when you saysponsorship you mean like ads?
Oh yeah, oh yeah, oh yeah.
And then with those ads, uh, for peoplethat don't know, can you kind of explain
how those work of how you can customizethem to be, uh, what are your
customizations?
(10:09):
A location I'm, I'm going to guess isprobably one.
Like you want your ad to be shown in thesespecific zip codes or these specific
areas.
What other customizations do you have?
area.
You go through the keywords, of course,you're targeting for, because certain
keywords have different weight to them anddifferent prices to them.
(10:31):
There's also negative keywords, keywordsyou don't want to be targeting because
they don't produce.
So it's a campaign within Google Ads thatyou run that you tailor to.
that where most of your leads come from?
Are they coming through that?
Is that your number one lead channel?
Depends what you mean by most if you'resaying number of leads then no it break to
(10:51):
say number of deals the answer is yes
Oh, wow.
Okay.
Wow.
Interesting.
That's great.
Well, once you get a home, a house undercontract, can you talk a little bit about
your next steps?
How do you determine if you're going tokeep that home and flip yourself?
Or you said most of the times you'returning around and wholesaling.
So I take it you have a list of investorsthat you then
(11:13):
you know, get a home under contract,you're emailing your list of investors.
Can you kind of walk us through with that?
We have a lot of investors that listen tothe podcast.
So just kind of walk through what thatlooks like for an investor, if they're on
your list or can be on your list.
Now, the day and age of traditionalwholesaling is changing.
And I think that we're going to probablyget into some of those things later on.
(11:34):
But just to kind of a preface is this is achanging landscape.
This is what, as of April 18, 2024, thisis how it is.
Not to say that next year, or honestlynext month, it's going to be the same.
So if whatever got you from zero to one isnot what is going to get you from one to
two, and that is a huge fallacy peoplethink that that's successful.
(11:57):
Well, look for me in the past is going towork for me in the future.
Well, I mean, there's a propensity forsuccess if you continue that.
However, it doesn't mean that you can't bedisrupted.
Look at Blockbuster, for example.
So when I get a deal on a contract, what Iused to do is I used to have a list.
I would work that list and I would networkwith other people.
(12:20):
You know exchange lists and whatnot andbuild up a pretty decent buyers list But
in because of the volume of leads I wasdoing consistently I wasn't in a flyby in
an operation people like oh, man This is aguy is still around holy crap And so I've
kind of built like a reputation in ourcommunity about like the guy who does
like, you know Sounds like wholesaledeals.
So that was that was great And I've sentit to my buyers now.
(12:43):
I am going to be give a shout out to aninvestor left So an investor lift is a
great tool Robert Winsley is the owner
him and I are good friends and not justbecause we're good friends.
I like the product before really becamefriends.
So when he, the first launch investorleft, I was like, this is interesting.
What is investor left?
And I really liked the platform becauseit's a disposition tool that filled a need
(13:10):
in our community.
There wasn't a unified way to, to findbuyers.
So now instead of marketing just to ourbuyers list we market to a I guess a
consortium of buyers list and I have aStatus in the in the investor community
(13:32):
called cartel now cartel is the is I thinkit's called enterprise Level and only like
the top wholesalers of the nation get intothat status.
It's not cheap, but It's not cheap
And now, so what I do is I have accessacross the country.
I think it's like 4.2 million buyers.
(13:53):
So in our market, I think alone, I thinkit's like 35 or 40,000 buyers.
But that's just, you know.
in our market here in the greater Seattlearea.
Wow.
Yeah.
Wow.
Yeah, yeah,
(14:30):
It sounds like a lot, but I promise youit's not that much.
Seems like a lot to me.
I don't know.
Yeah.
one of the questions I asked people askedlike, well, hey, is investor lift worth
it?
I, I have no dog in the fight.
So meaning that it's not like I get akickback from this.
The thing is, if you're not an investorlift, you're, you're losing money straight
(14:51):
up.
Man.
I, I cringe.
I cringe when someone says, Hey, I havefive buyers on my list and I wholesale all
my deals to them.
I'm like,
Okay, you're definitely leaving money onthe table.
You're definitely leaving money on thetable.
Good job for those five buyers that yougot.
(15:13):
They've done a great job, but you'relosing money on, you're leaving money on
the table.
Because our average wholesale feels, ithas gone down.
It definitely has gone down.
It used to be 32, 28, now it's 30 again.
So, you know, that's, it's...
I mean, it's not it's not nothing to bragabout because I got a really good friend
(15:35):
in San Diego who's averaging, I think he'sat fifty five wholesale.
So he's in honestly San Diego is notbetter than our market.
It's not actually a better market.
But, you know, who's operating willdetermine that.
But if the more buyers you have, the morepeople who are looking at your deals.
So market demand, right?
(15:56):
More people looking at the deal, morepeople will want the deal, more options to
wholesale the deal to.
I love that.
Well, let's talk a little bit about thefuture specifically here in the in the
Seattle metro area Around wholesaling andthe work that you do in your company How
do you see this the current landscape nowand kind of what do you see kind of coming
(16:18):
or what do you think the future holds?
for wholesaling
Well, wholesaling is definitely going tochange.
It's definitely, definitely going tochange.
And I also see that real estate agentsthat's going to change too.
So I hopefully no other realtors getoffended by this, but that industry is
ripe for disruption.
(16:39):
And so is wholesaling.
And here's, here's why I say that realtorsit's been around that model for a really
long time without very much innovation.
And with lack of innovation comes theprime for something someone to disrupt
(17:01):
like I said earlier the Blockbuster andNetflix everybody knows that story
literally everybody knows that storyblockbusters like hey, this is my our
corner of the market There's no way, youknow, anybody's gonna come here.
They had the chance to buy Netflix I thinkfor like yeah for like 30 million dollars.
That's like pennies on the dollar
I know, that's so crazy, huh?
(17:22):
so what they came with is like this newtechnology to be able to, uh, to rent DVDs
online.
Yeah.
And they change it to a streaming platformand that right there was a massive game
changer.
What, what problem did it solve?
You have to ask yourself what problem didNetflix solve that blockbuster did?
(17:44):
For me, it's not having to return your VHStape.
Well, first of all, that was a scambecause it was like you could have bought
you could have bought that movie But thetime you know the all the late fees you
put you paid so the pain point installedwas convenience Okay, it you could sit at
home Click a button and Watch a movie Youknow, what steps did it remove?
(18:11):
Go into the store Renting the moviedriving back returning it
There are so many steps in that.
And Netflix said, don't even driveanywhere.
You could, at the comfort of your home,click a button.
Don't have to return anything.
Don't have to go anywhere.
It's right there.
(18:32):
They removed so much steps in that.
And look at the realtors right now.
There's so many steps in the process.
So many steps in the process.
And I don't know what that change is goingto be for them.
I feel like there's going to be atechnology disruptor, maybe AI, who knows?
Same thing with wholesaling.
There is so many steps in that process,but the thing is that it's hard to disrupt
(18:58):
is human interaction because realtors havea trust, a relationship with people.
That's really hard to disrupt.
It really, really is.
So same thing with wholesaling too.
companies out there who had millions andmillions of VC money to try to disrupt
(19:19):
wholesaling and they failed the reasonthey failed because they treated people
like a commodity like a number and That'swhere the part they failed So I feel like
there's going to be a change happening inwholesaling that will disrupt The market
and you could actually kind of see some ofthings happening right now Oklahoma has
pretty much outlawed wholesaling.
(19:40):
It will know you can only wholesale onedeal
Uh, South Carolina is trying to pass a lawin the place that says, if you have an
interest in a contract, you cannot sellthat contract to anybody else.
Hmm.
Wow.
unless you have, I think it's unless youhave your realtors license or something
(20:02):
like that.
So there's already a couple of states outthere who have a target on wholesaling.
So it's going to get disrupted.
I know that.
So for me, it's like, OK, well, how can Ido that?
And so some things that has changed vastlyis innovations.
Do you know what a novation is?
Cool.
(20:23):
Maybe I shouldn't say that.
Innovation is another way to almostwholesale.
It's not the same thing as wholesaling.
It's being able to offer a seller a lotmore money than a wholesale and still get
them to the end result as long as they'reokay with the timing aspect of it and the
(20:45):
access piece of it.
So if they're okay with that, we couldactually offer them more money.
So that has been a massive disruptor forwholesale, a massive disruptor in 2021.
January, we're like, holy freaking crap.
We only are gonna make like 200, 150,000that month, which is not a lot.
It's not a lot of money.
(21:05):
People are like, oh, Victor, you're doingso great.
It's like, you don't know all the numbers.
You know, there's a lot of burn rate wehave in our company, right?
And so to sustain this organization, like$50,000.
Like I'm like people are like, oh wow, youclosed 50,000.
I'm like, yeah, that just paid for ourmarketing.
Yeah, I broke even.
Yeah.
(21:25):
So we were like making 50,000 that monthand I was like freaking out.
I'm like, this is crazy.
And then my buddy is like, well, I metwith him at a mastermind and he was
talking about this thing calledinnovations.
And he was like, yeah, man, I could do adeal, you know, listing on the MLS and I'm
like, what?
And he tried to explain it to me.
I'm like, bro, once you figure that out,come but talk to me.
(21:48):
Otherwise, I'm not gonna try to introducethis thing because it's working for me.
Right now, Wholesale is working for you,but I change it.
Yeah.
Blockbuster.
wasn't.
Yeah, and so then we started in February.
I went to my buddy, learned the process.
Then we started doing it in February.
March time, we're like seeing wholesaleinnovation 50-50, and then February, bam,
(22:13):
we make like 750,000 that month in April.
So it's a massive disruptor.
And right now, most of my deals areinnovations.
I don't do as much.
of wholesaling anymore.
And we're primarily a innovation companynow.
And so that's a disruptor in thewholesaling space.
So there's, I feel like it could beanother disruptor.
(22:35):
I call it wholesaling 3.0.
And that's a whole new ballpark that wecan get into.
Yeah.
Do you, do you feel like we're, are youfinding more, uh, more homeowners looking
to sell their homes right now?
Do you feel like the way the economy isgoing, uh, interest rates, aren't coming
(22:56):
down.
People are locked into these homes.
Uh, are you seeing, are you, are youseeing more leads come in or you're doing
more deals or anything around that in thefuture that you're kind of keeping your
eye on?
The cool thing about real estate is it's anecessity.
(23:16):
You have to have a house.
You have to know, you have to sleepsomewhere.
So it's a necessity and what determinesour lead flow is how much money we're
willing to spend.
That's what really determines our leadflow.
At least in this market, I can't say, backin 2006, 2008, that could be true.
(23:36):
So the interest rates that are...
People are very afraid of and what andthey do definitely impact, but we have to
learn what the new normal is.
Right.
This is the new normal.
7% interest rate is the new normal.
We need to now need to adjust how wespend, how we look at things and how we
calculate our numbers to adjust to thisnew normal.
(23:56):
But there's just a massive, and I want tosay it again, massive under supply of
inventory in the market, massive disruptorof inventory.
So the demand is up here, the supply ishere.
There's a huge gap and that's why we'restill seeing, you know, deals being had,
even though the interest rates are high.
Yeah.
(24:18):
And I think we're seeing that across thestate of Washington.
All of our rental properties, we have abunch of rental properties over in Spokane
and it's the same thing in Spokane too.
It's just the, the supply is not there andthe demand is still through the roof.
Even as you know, there are, there is moresupply hitting the market, but it's not
even close to, to be able to meet thedemand yet.
(24:40):
We're not seeing those numbers reallydrop.
So it's very interesting just here in ourstate.
I think we're gonna be in that market fora while yet.
And we still have more people moving intothe state of Washington than we have
moving out.
We're in it, you know.
So it's gonna be really interesting, Ithink, especially in the greater Seattle
area here.
I mean, there's so many homes and so manypeople moving constantly.
I just feel like there's always peopleshifting either from Seattle to Bellevue
(25:04):
or Bellevue to Seattle or North to South.
There's just so much movement around herethat I think there's probably gonna be
opportunities like this for...
for quite a while in the current marketthat we have.
Yep.
There always will be opportunity.
Yeah.
well, Victor, thank you for spending sometime with us today and really talking
about this.
If if any investors are listening to this,and they want to reach out and learn more
(25:28):
about you learn more about your company,where's the best place for them to go?
Yeah, my IG, which is Victor GLG, whichstands for God, Love and Growth, and
Facebook, right?
Victor dot Rybichuk at whatever handlethat is.
Yeah, Facebook.
I don't know.
Awesome.
Well, we'll make sure all of those,including the I will buy house.com website
(25:53):
is in the show notes here as well, as wellas investor lift, we'll make sure that
makes it over there.
If anybody wants to take a look at that,and you haven't heard of that platform
yet, I will make sure that's in the shownotes as well.
Victor, thank you for spending some timewith us today talking about your business
and wholesaling here in WesternWashington.
Cool, absolutely.
All right, welcome back to the WashingtonState real estate investing podcast.
I'm so excited to be joined by Victortoday.
Uh, Victor, uh, runs the website, uh, andthe business I will buy house.com.
Uh, and we're going to dig into hisbusiness here in real estate, uh, up and
down, uh, the five die five, uh, I fivequarter kind of, uh, and even on the over.
(00:26):
and the East side of the West side of thestate in the Bellevue area, that kind of
area as well.
So Victor, welcome to the podcast.
As we get started, talk a little bit aboutwhat inspired you to start, I Will Buy
House, and how did you start to build thisbusiness?
Well, I had a career that completely madeit very parallel, very easy to get into
(00:47):
real estate.
It made a lot of sense.
You get your degree in nursing, you go towork at the hospital for seven years, and
that primes you for real estate.
I mean, that's the best thing you couldever do.
No, not at all.
is.
(01:08):
No, so really, I mean, I got into realestate and, you know, wholesaling because
I looked at a lot of other options of,I've always had like the entrepreneur bug.
I mean, as a kid, I had a joke that I waslike going to create a company called good
day corporations.
And you know, I didn't get into business.
I honestly probably should have becausejust the personality that I am right now,
(01:30):
I'm like, Oh my gosh, what were you doingin nursing?
But everything has a purpose and that's,that's where it kind of led.
Mm.
So I did, I did all those things.
I went to WSU, go Cougs.
Then I got my, oh nice.
There, I knew I liked you for a reason.
That's why.
Uh, yeah.
So I went to WSU, got my degree in Spokanefor the nursing program.
(01:54):
Then yeah, went, worked as a pediatricnurse for seven years in San Altares
hospital, loved what I was doing.
It was very rewarding, very fulfilling,but I wanted more to me.
To me, working the hours that I did thenight shift was grueling.
I'd work, I'd work sometimes 10 hours,sorry, 10 days in a row.
(02:14):
And now I work more.
Exactly.
I don't get a day off.
So yeah, no, it's kind of like that funnymeme is like, I quit my nine to five day
job and now I work 24 seven.
Yep.
It's owning your own business for sure.
And then really it was just, you know, Ilooked in becoming a doctor.
(02:36):
That didn't work out.
I wanted to be what's called a nurse atthat nest at this.
Nesseth this.
I don't know.
I don't even know how to pronounce itanymore.
And I was like, I, it's not for me.
And then I saw this thing called risk.
Like, ah, come on real estate.
That's like for that's typical Russianthing.
I'm not going to do that.
It's kind of like getting cars, fixingthem up and selling out.
(02:57):
That's so stereotypical.
I'm not doing, I'm not doing remodels onhouses.
because I had just had a bad connotationto it.
But there's tons of money into that, tonsof money.
I didn't know that.
And then I was like, okay, well, this isinteresting.
Keeps copying up on my search of like howto make money.
Because I literally Googled, how do I makemoney?
(03:18):
And there was like a post of like variousthings to sell, like sell books, garage.
I'm like, I'm not gonna do garage salesand I'm not doing that.
And then I went, it just kept coming upreal estate.
I was like.
Okay, I gotta look into this.
I gotta let this, you know, pre-seekingthe notion down and see what real estate's
all about.
(03:40):
Then I read some books, I went to awebsite and after website, I read some
stuff on blogs.
I went to a meetup and that was like,okay, this is interesting.
And I heard a thing about wholesaling.
I was like, what is this?
I've never heard of this, this is weird.
And they talked about like you could getinto real estate with no money.
(04:01):
I'm like, well, it's not that I don't haveany money.
I have very little of it.
So how can I get more money to buy my nextword to buy my flip?
Then I went to a couple of like weekendclasses and this is me without having kids
yet, went to a couple of, went to a coupleof classes and they were talking about
wholesaling.
I'm like, I could do this.
So I'm going to do three, three wholesaledeals.
(04:22):
I'm going to get enough money and thenI'll do my first flip.
10 years later, I am still wholesaling,barely flipping, and very deliberately,
and I did do a couple of deals.
So the first deal, I made like 13,000.
(04:43):
I was like, yes!
That was my first deal, I made 13,000.
That was like proof to my wife, like, hey,there's money into this.
This took me, at that time it took me likesix months to do that, or nine months to
make that kind of money.
but it was like an aha moment of, oh mygosh, this is one deal.
You just made four months of a salary as anurse at that time in one deal.
(05:04):
How can you repeat this?
That was like, okay, my wife was like,okay, you made that money, pay us back.
Then you can reinvest whatever you wantback into what you're doing.
And so she let me do my thing.
And I noticed that at some point I waslike, okay, my interests are not aligned.
working seven, seven or sometimes 10 daysin a row, night shift, I'm coming home at
(05:28):
seven a.m.
So I was getting off of shift seven a.m.,coming home around eight, talking to
sellers, then going to bed, waking up atthree, four o'clock, going to the gym at
work at seven p.m.
and repeating that all over again.
So I was like, something's gotta change.
And the funny thing is I saw a proof ofconcept, not that I could completely
replace my income with wholesaling, but Isaw a proof of concept.
(05:50):
And I was like, okay.
You got to prove a concept, it'sproducing.
And as soon as I pretty much quit my job,I got two massive deals, like $64,000 and
$42,000.
So that to me was awesome, but it was astruggle after struggle.
Don't think that there's a happy ending toit, because there ain't.
Because it was like figuring this out.
Really, wholesaling is about marketingsales.
(06:11):
It's not about investing.
People stop lying to yourself that youcall yourself an investor.
You are not.
You are not an investor.
You are a day trader.
You are...
you're trading your time for money.
And that's what wholesaling is.
And I get that.
I understand this.
I am not into real estate becausehonestly, because I could take my same
skill sets.
I could go sell, let's just call itsurgical supplies.
(06:33):
I could go sell the next app that comesout, or I could sell a widget, go buy
something on Amazon and sell that widget.
Because it's all marketing and sales.
That's what wholesaling is.
It just so happens to be in the space ofreal estate.
And so, you know, 10 years later, I'mstill figuring this out.
I don't have it.
I mean, I have, you know, over 500 dealsthat I've done, but I'm still figuring
(06:54):
out.
I'm still like, okay, what's the nextthing that I need to be focusing on?
How can I improve what I'm doing rightnow?
So yeah, that's how I kind of transitioninto real estate.
cool.
I love it.
Everybody's is everybody has such a greatstory of how they how they got into real
estate from whatever your background waswhen you got started.
So in a year now, so say here in 2024, howmany how many deals are you?
(07:20):
Do you have a goal of how many deals youwant to do?
How many houses you want to you want toget under contract?
Yeah, I mean, I'm spending about rightnow, it's roughly around like 50,000 a
month in marketing.
So if you do the math, if you're saying,okay, if you're going to spend 50,000 in
marketing, what should you produce fromthat marketing spend?
And I like to use a simple rule.
(07:41):
It's not, it's anything special.
I don't like the 70% rule.
I think it's not very good, at leastespecially accurate in our market, but
it's like a rule of thumb.
So if you're spending 50,000, you shouldbe making at least four X that.
And just in gross revenue, not profits,but gross revenue.
So you do the math, right?
You should be making at least 200,000 amonth.
(08:01):
And that for me is like, that's like a Cminus.
That's not like great.
Where I truly wanna be is a million amonth.
So a million a month, it means I'mspending over $200,000 in marketing spend,
probably closer to, yeah, 250 is where Iwanna be spending in marketing spend.
So I'm gearing myself for that and youknow.
(08:24):
Before you can scale, you need to first,you know, standardize and optimize before
you can scale.
Because if you're gonna scale and youdon't have standard and optimize done,
you're gonna scale the wrong thing.
Whatever your problems are now, they'rejust gonna be magnified when you try to
scale.
Yeah, a lot of people are like, oh, Istarted a business, now I wanna scale.
It's like, oh, hold on a second.
(08:45):
Standardize first, figure this out, makeit repeatable.
I love that.
And so when you're marketing, what are allyour marketing channels to get homes under
contract?
Right now it's mainly Google.
PPC is the main one that I'm working on.
That's the main one.
We do cold calling texting, which isprobably going to go away to be honest
(09:06):
with you.
Texting is on its way out.
We've already been flagged and it's notour fault.
We were compliant, but the company who wasusing our account, they weren't compliant.
And so we got banned.
It's like, we were following the rules.
Why are we in trouble?
It was frustrating.
So we're just now on the tail end of that.
(09:26):
We got reinstated last week.
We're going through the process ofBuilding up our credibility.
So we're texting.
We're also doing paperly channels and myone of my favorite ones SEO God, I love
SEO.
I just I wish I could be better at SEOthan I am now But yeah SEO is a great one
to be had
on, just on Google, basically then you're,are you paying for sponsorship spots on
(09:49):
top of SEO?
You mean like you mean when you saysponsorship you mean like ads?
Oh yeah, oh yeah, oh yeah.
And then with those ads, uh, for peoplethat don't know, can you kind of explain
how those work of how you can customizethem to be, uh, what are your
customizations?
(10:09):
A location I'm, I'm going to guess isprobably one.
Like you want your ad to be shown in thesespecific zip codes or these specific
areas.
What other customizations do you have?
area.
You go through the keywords, of course,you're targeting for, because certain
keywords have different weight to them anddifferent prices to them.
(10:31):
There's also negative keywords, keywordsyou don't want to be targeting because
they don't produce.
So it's a campaign within Google Ads thatyou run that you tailor to.
that where most of your leads come from?
Are they coming through that?
Is that your number one lead channel?
Depends what you mean by most if you'resaying number of leads then no it break to
(10:51):
say number of deals the answer is yes
Oh, wow.
Okay.
Wow.
Interesting.
That's great.
Well, once you get a home, a house undercontract, can you talk a little bit about
your next steps?
How do you determine if you're going tokeep that home and flip yourself?
Or you said most of the times you'returning around and wholesaling.
So I take it you have a list of investorsthat you then
(11:13):
you know, get a home under contract,you're emailing your list of investors.
Can you kind of walk us through with that?
We have a lot of investors that listen tothe podcast.
So just kind of walk through what thatlooks like for an investor, if they're on
your list or can be on your list.
Now, the day and age of traditionalwholesaling is changing.
And I think that we're going to probablyget into some of those things later on.
(11:34):
But just to kind of a preface is this is achanging landscape.
This is what, as of April 18, 2024, thisis how it is.
Not to say that next year, or honestlynext month, it's going to be the same.
So if whatever got you from zero to one isnot what is going to get you from one to
two, and that is a huge fallacy peoplethink that that's successful.
(11:57):
Well, look for me in the past is going towork for me in the future.
Well, I mean, there's a propensity forsuccess if you continue that.
However, it doesn't mean that you can't bedisrupted.
Look at Blockbuster, for example.
So when I get a deal on a contract, what Iused to do is I used to have a list.
I would work that list and I would networkwith other people.
(12:20):
You know exchange lists and whatnot andbuild up a pretty decent buyers list But
in because of the volume of leads I wasdoing consistently I wasn't in a flyby in
an operation people like oh, man This is aguy is still around holy crap And so I've
kind of built like a reputation in ourcommunity about like the guy who does
like, you know Sounds like wholesaledeals.
So that was that was great And I've sentit to my buyers now.
(12:43):
I am going to be give a shout out to aninvestor left So an investor lift is a
great tool Robert Winsley is the owner
him and I are good friends and not justbecause we're good friends.
I like the product before really becamefriends.
So when he, the first launch investorleft, I was like, this is interesting.
What is investor left?
And I really liked the platform becauseit's a disposition tool that filled a need
(13:10):
in our community.
There wasn't a unified way to, to findbuyers.
So now instead of marketing just to ourbuyers list we market to a I guess a
consortium of buyers list and I have aStatus in the in the investor community
(13:32):
called cartel now cartel is the is I thinkit's called enterprise Level and only like
the top wholesalers of the nation get intothat status.
It's not cheap, but It's not cheap
And now, so what I do is I have accessacross the country.
I think it's like 4.2 million buyers.
(13:53):
So in our market, I think alone, I thinkit's like 35 or 40,000 buyers.
But that's just, you know.
in our market here in the greater Seattlearea.
Wow.
Yeah.
Wow.
Yeah, yeah,
(14:30):
It sounds like a lot, but I promise youit's not that much.
Seems like a lot to me.
I don't know.
Yeah.
one of the questions I asked people askedlike, well, hey, is investor lift worth
it?
I, I have no dog in the fight.
So meaning that it's not like I get akickback from this.
The thing is, if you're not an investorlift, you're, you're losing money straight
(14:51):
up.
Man.
I, I cringe.
I cringe when someone says, Hey, I havefive buyers on my list and I wholesale all
my deals to them.
I'm like,
Okay, you're definitely leaving money onthe table.
You're definitely leaving money on thetable.
Good job for those five buyers that yougot.
(15:13):
They've done a great job, but you'relosing money on, you're leaving money on
the table.
Because our average wholesale feels, ithas gone down.
It definitely has gone down.
It used to be 32, 28, now it's 30 again.
So, you know, that's, it's...
I mean, it's not it's not nothing to bragabout because I got a really good friend
(15:35):
in San Diego who's averaging, I think he'sat fifty five wholesale.
So he's in honestly San Diego is notbetter than our market.
It's not actually a better market.
But, you know, who's operating willdetermine that.
But if the more buyers you have, the morepeople who are looking at your deals.
So market demand, right?
(15:56):
More people looking at the deal, morepeople will want the deal, more options to
wholesale the deal to.
I love that.
Well, let's talk a little bit about thefuture specifically here in the in the
Seattle metro area Around wholesaling andthe work that you do in your company How
do you see this the current landscape nowand kind of what do you see kind of coming
(16:18):
or what do you think the future holds?
for wholesaling
Well, wholesaling is definitely going tochange.
It's definitely, definitely going tochange.
And I also see that real estate agentsthat's going to change too.
So I hopefully no other realtors getoffended by this, but that industry is
ripe for disruption.
(16:39):
And so is wholesaling.
And here's, here's why I say that realtorsit's been around that model for a really
long time without very much innovation.
And with lack of innovation comes theprime for something someone to disrupt
(17:01):
like I said earlier the Blockbuster andNetflix everybody knows that story
literally everybody knows that storyblockbusters like hey, this is my our
corner of the market There's no way, youknow, anybody's gonna come here.
They had the chance to buy Netflix I thinkfor like yeah for like 30 million dollars.
That's like pennies on the dollar
I know, that's so crazy, huh?
(17:22):
so what they came with is like this newtechnology to be able to, uh, to rent DVDs
online.
Yeah.
And they change it to a streaming platformand that right there was a massive game
changer.
What, what problem did it solve?
You have to ask yourself what problem didNetflix solve that blockbuster did?
(17:44):
For me, it's not having to return your VHStape.
Well, first of all, that was a scambecause it was like you could have bought
you could have bought that movie But thetime you know the all the late fees you
put you paid so the pain point installedwas convenience Okay, it you could sit at
home Click a button and Watch a movie Youknow, what steps did it remove?
(18:11):
Go into the store Renting the moviedriving back returning it
There are so many steps in that.
And Netflix said, don't even driveanywhere.
You could, at the comfort of your home,click a button.
Don't have to return anything.
Don't have to go anywhere.
It's right there.
(18:32):
They removed so much steps in that.
And look at the realtors right now.
There's so many steps in the process.
So many steps in the process.
And I don't know what that change is goingto be for them.
I feel like there's going to be atechnology disruptor, maybe AI, who knows?
Same thing with wholesaling.
There is so many steps in that process,but the thing is that it's hard to disrupt
(18:58):
is human interaction because realtors havea trust, a relationship with people.
That's really hard to disrupt.
It really, really is.
So same thing with wholesaling too.
companies out there who had millions andmillions of VC money to try to disrupt
(19:19):
wholesaling and they failed the reasonthey failed because they treated people
like a commodity like a number and That'swhere the part they failed So I feel like
there's going to be a change happening inwholesaling that will disrupt The market
and you could actually kind of see some ofthings happening right now Oklahoma has
pretty much outlawed wholesaling.
(19:40):
It will know you can only wholesale onedeal
Uh, South Carolina is trying to pass a lawin the place that says, if you have an
interest in a contract, you cannot sellthat contract to anybody else.
Hmm.
Wow.
unless you have, I think it's unless youhave your realtors license or something
(20:02):
like that.
So there's already a couple of states outthere who have a target on wholesaling.
So it's going to get disrupted.
I know that.
So for me, it's like, OK, well, how can Ido that?
And so some things that has changed vastlyis innovations.
Do you know what a novation is?
Cool.
(20:23):
Maybe I shouldn't say that.
Innovation is another way to almostwholesale.
It's not the same thing as wholesaling.
It's being able to offer a seller a lotmore money than a wholesale and still get
them to the end result as long as they'reokay with the timing aspect of it and the
(20:45):
access piece of it.
So if they're okay with that, we couldactually offer them more money.
So that has been a massive disruptor forwholesale, a massive disruptor in 2021.
January, we're like, holy freaking crap.
We only are gonna make like 200, 150,000that month, which is not a lot.
It's not a lot of money.
(21:05):
People are like, oh, Victor, you're doingso great.
It's like, you don't know all the numbers.
You know, there's a lot of burn rate wehave in our company, right?
And so to sustain this organization, like$50,000.
Like I'm like people are like, oh wow, youclosed 50,000.
I'm like, yeah, that just paid for ourmarketing.
Yeah, I broke even.
Yeah.
(21:25):
So we were like making 50,000 that monthand I was like freaking out.
I'm like, this is crazy.
And then my buddy is like, well, I metwith him at a mastermind and he was
talking about this thing calledinnovations.
And he was like, yeah, man, I could do adeal, you know, listing on the MLS and I'm
like, what?
And he tried to explain it to me.
I'm like, bro, once you figure that out,come but talk to me.
(21:48):
Otherwise, I'm not gonna try to introducethis thing because it's working for me.
Right now, Wholesale is working for you,but I change it.
Yeah.
Blockbuster.
wasn't.
Yeah, and so then we started in February.
I went to my buddy, learned the process.
Then we started doing it in February.
March time, we're like seeing wholesaleinnovation 50-50, and then February, bam,
(22:13):
we make like 750,000 that month in April.
So it's a massive disruptor.
And right now, most of my deals areinnovations.
I don't do as much.
of wholesaling anymore.
And we're primarily a innovation companynow.
And so that's a disruptor in thewholesaling space.
So there's, I feel like it could beanother disruptor.
(22:35):
I call it wholesaling 3.0.
And that's a whole new ballpark that wecan get into.
Yeah.
Do you, do you feel like we're, are youfinding more, uh, more homeowners looking
to sell their homes right now?
Do you feel like the way the economy isgoing, uh, interest rates, aren't coming
(22:56):
down.
People are locked into these homes.
Uh, are you seeing, are you, are youseeing more leads come in or you're doing
more deals or anything around that in thefuture that you're kind of keeping your
eye on?
The cool thing about real estate is it's anecessity.
(23:16):
You have to have a house.
You have to know, you have to sleepsomewhere.
So it's a necessity and what determinesour lead flow is how much money we're
willing to spend.
That's what really determines our leadflow.
At least in this market, I can't say, backin 2006, 2008, that could be true.
(23:36):
So the interest rates that are...
People are very afraid of and what andthey do definitely impact, but we have to
learn what the new normal is.
Right.
This is the new normal.
7% interest rate is the new normal.
We need to now need to adjust how wespend, how we look at things and how we
calculate our numbers to adjust to thisnew normal.
(23:56):
But there's just a massive, and I want tosay it again, massive under supply of
inventory in the market, massive disruptorof inventory.
So the demand is up here, the supply ishere.
There's a huge gap and that's why we'restill seeing, you know, deals being had,
even though the interest rates are high.
Yeah.
(24:18):
And I think we're seeing that across thestate of Washington.
All of our rental properties, we have abunch of rental properties over in Spokane
and it's the same thing in Spokane too.
It's just the, the supply is not there andthe demand is still through the roof.
Even as you know, there are, there is moresupply hitting the market, but it's not
even close to, to be able to meet thedemand yet.
(24:40):
We're not seeing those numbers reallydrop.
So it's very interesting just here in ourstate.
I think we're gonna be in that market fora while yet.
And we still have more people moving intothe state of Washington than we have
moving out.
We're in it, you know.
So it's gonna be really interesting, Ithink, especially in the greater Seattle
area here.
I mean, there's so many homes and so manypeople moving constantly.
I just feel like there's always peopleshifting either from Seattle to Bellevue
(25:04):
or Bellevue to Seattle or North to South.
There's just so much movement around herethat I think there's probably gonna be
opportunities like this for...
for quite a while in the current marketthat we have.
Yep.
There always will be opportunity.
Yeah.
well, Victor, thank you for spending sometime with us today and really talking
about this.
If if any investors are listening to this,and they want to reach out and learn more
(25:28):
about you learn more about your company,where's the best place for them to go?
Yeah, my IG, which is Victor GLG, whichstands for God, Love and Growth, and
Facebook, right?
Victor dot Rybichuk at whatever handlethat is.
Yeah, Facebook.
I don't know.
Awesome.
Well, we'll make sure all of those,including the I will buy house.com website
(25:53):
is in the show notes here as well, as wellas investor lift, we'll make sure that
makes it over there.
If anybody wants to take a look at that,and you haven't heard of that platform
yet, I will make sure that's in the shownotes as well.
Victor, thank you for spending some timewith us today talking about your business
and wholesaling here in WesternWashington.
Cool, absolutely.
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