On the show today we have… wholesaler Viktor Rybachuk of I Will Buy House!
Listen on: Apple Podcasts | Stitcher | Spotify
Show Links:
– Viktor’s Facebook
– Viktor’s LinkedIn
– Viktor’s seller website
– PurchaseThisDeal.com for buyers
– Listen to our podcast #63 with Jeff Watson
Show notes for Viktor Rybachuk of I Will Buy House!
Take in imperfect massive action!
The Vantastic Life is…
– is in Taos New Mexico!
Joe is in Taos New Mexico, Julie is in Seattle Washington, and Viktor is in Lynnwood Washington.
Julie
We should do another podcast on the reality of van life. I would like to introduce Victor who is really into health and fitness like Joe. They might bro out a bit.
Viktor is an investor in WA state with IWillBuyHouse.com and PurchaseThisDeal.com.
We have Viktor on the podcast because he’s willing to share the truth about the struggles about making it in this real estate business. All while living his life and having a loving family.
He’s absolutely fearless in sharing the ups and downs of his life. Big props to that.
Joe
We’d like to hear more about you!
Viktor
I want to WSU and took wholesaling U. Haha! Not really.
I immigrated to America from Ukraine when I was 6 years old, and moved around a bunch of times. I was on section 8 well fair. We had food stamps.
My dad was on the construction side of the business. I thought that someday I wanted to start a business.
But I saw an opportunity in health care, and got my nursing degree at WSU. And really enjoyed that. It’s a rewarding perfection. I’ve saved countless number of lives with my intervention. Seriously!
I would come home and know that I made a difference.
Real estate came to me as something that I wanted to do more. I worked in places where kids had hearts that were defective. Then I tried to become a doctor, and realized that they were working WAY too much. So I was getting A’s but decided to stop that.
That trickled down to checking out real estate. So I went to some meetup groups. I wanted to flip, but saw an opportunity with wholesaling. You could get into it quickly, not easily, but quickly.
My wife is awesome, but was thinking I was putting a lot of money into something that we didn’t know would work.
I did my first wholesale and made $13k, and that was cool. And that’s about when I met my business partner, who was wholesaling as well.
Julie
What does it take to be a full time wholesaler?
Viktor
There is such thing as a part time wholesaler. It’s its own business model. I do it full time because I want full time income for my family.
Julie
What does a typical day look like?
Viktor
We are home buying specialists. We (biz partner) are the ones that put the deals under contracts. We are 8-9 people on our team all over the world.
The VA’s can take calls, run comps. Then pass the deals along to us. It’s absolutely a funnel process.
It’s all about sales and marketing. That’s it!
Julie
Do you provide VA’s scripts?
Viktor
Yes. When you have a VA you give up some of your control. You maintain the process by having a script. Otherwise you lose control.
Julie
Do you VA’s have to have good English? Pros and cons…
Viktor
With a VA you give up some pros that you would have with a local worker. The aren’t as effective, hands down. The trade is what they cost. You can’t get a local person for the same price. You have to measure the ROI.
We’ve run the numbers and right now, VA is the way to go for ROI.
Julie
Are you only in WA?
Viktor
We are in WA and OR, but looking to go national. We are getting leads throughout the whole country.
Julie
Once you roll that out we’ll have you back on.
What’s your backend look like?
Viktor
We manage leads… you have to have some CRM system. We started with a Google Sheet, but have transitioned to InvestorFuse with Podio (not the new one).
You have to have that. If you’re doing at least $3k/month of marketing you HAVE to have a good CRM.
We use Ring Central for our phone calls and team chat and meetings.
We hire out for PPC and SEO. We have a team for that. We use an InvestorCarot.com site. We’ve spent thousands of dollars to optimize our website.
Julie
How much are you spending a month? I think you said you did 13 deals in 2 months… What’s it take…
Viktor
First off, you NEED to be able to measure your return on investment. If you don’t know where you’re going, you’re lost.
We need to get… from a funnel… ave cost for deal is $8.5k. That what we spend for a deal.
Leads to get a deal is 30-35. We’d like to get to around 20.
Julie
Is it that or a more defined list?
Viktor
We think it’s a conversion issue. PPC leads are warmer than outbound marketing. They are coming to us. They are way more motivated.
Julie
Is PPC or Facebook better?
Viktor
We’ve been doing PPC for year, and it’s been our bread and butter. The SEO has taken us 2+ years to get to number 1 on our page. We are now #1 on tons of keywords. We like those leads better.
Rank – Google – Facebook – SEO
Julie
I also hear that PPC is doing best for them. Most people just don’t play there. Maybe they got scared off…
Are you spending $10k/month on…
Viktor
We are spending $30-50k per month on all of our marketing.
Our cost per lead for PPC is about $300 per month.
We don’t like mail leads because our leads are much more motivated.
We are surgeons with what we do. Don’t come to us with a cold. We are setup to do surgery on the broken leg.
Julie
When you were getting started were you missing on anything and what have you honed in on to get better?
Viktor
That’s a great question… the number one struggle. Is actually getting deals under contract. It’s really tough to get deals because of the competition.
Doing the numbers, rehab budget, ARV. We’ve done flipping before, but that’s not for us.
We have a tier system, if the house looks like this… it fits into this tier.
A lot of wholesalers miss opportunities because you have a bunch of different ways to look at a deal.
Julie
When you put out your deals.. what does it look like?
Viktor
We do a fix or flip or rental for our marketing numbers. But don’t be limited by only two exit strategies.
Julie
How often do you have to renegotiate?
Viktor
Our close ratio is 60-70%, and that’s about the industry standard. Sometimes we miss things, or sellers lie (they do lie), or we find out things that we couldn’t see.
Julie
Are you underwriting your deals with hard money?
Viktor
We built out a calculator by hand using hard money. Most of our buyers use hard money.
Julie
The secret of wholesaling is that they all have a handful of select buyers. Do you sell to the same buyers all the time?
Viktor
I love this question! Find a niche. Our niche is WA state because we have such a broad reach. We have to think about buyers in random areas. If we look at a small area, we definitely have repeat buyers.
Julie
Sometimes when you share and coach people forget that you’re in this to make money.
I don’t like it when wholesaler blast out a deal when they already have it sold.
Do you get real estate agents on buyers list?
Viktor
Love it! You have to know your buyer and seller avatar. Agents talk to me, I love to connect with you!
Julie
How do you pay them?
Viktor
Most of the time it’s on top, and it always comes out of escrow.
Julie
What happens to the other 30-40% of deals that you can’t close?
Viktor
We do our fair share of what went wrong. A lot of times the sellers will keep the property. Or list, or go with another investor.
If we can’t close, we try to help. Sometimes, it’s why don’t you fix it up.
Julie
Wow, I could partner you up with some people that you could make some money with.
You say the hardest thing about being a wholesaler is getting the deal?
Viktor
I think analysis paralysis is such a barrier to everything in life. Take in imperfect massive action.
If you know so much about real estate but you don’t practice it.
Julie
What are you top 3 tips to getting started?
Viktor
Take massive imperfect action. Don’t stop doing it, period. If you are human you’ll learn along the way. Do something. Generate leads.
I do some coaching on the side, and finding that a lot of folks have a starting point of… I saw a house and tried to contact them, but didn’t get ahold of them. They don’t realize that it can take 60-70-10 contacts to actually get a house.
If I were to redo this all over I would find someone that it actually doing deals and get coaching from them. Pay it with time or money. If you get a coach, your results will be faster.
Julie
Lead generation takes time or money.
If you have time it will take longer. If you have money, it will take less time.
If people don’t have a lot of money what should they do?
Viktor
My view is… if you don’t have a lot of money, know that you’re going to have money. You’ll need to spend money to make money. I spent $6k to get my first $13k deal.
You must be knocking on 50-60 doors per day. Drive for dollars, which will cost gas. If cold calling you’ll need a list, so it won’t be absolutely free.
Julie
Who do you use for skip tracing?
Viktor
We’ve used Lead Sherpa. Sorry, I can’t tell you. They are license specific.
Julie
When you’re getting started people overlook, is, they compartmentalizations their real estate business. Real estate is a lifestyle. When you’re at the baseball game, or wherever, you need to open your mouth. Everyone should know that you’re a real estate professional.
YOU NEED TO OPEN YOUR MOUTH!!!!
Viktor
What I would say is talk to your avatar seller. If you’re talking to someone in Medina you’re probably barking up the wrong tree.
Knowing your avatar and client is so important.
Julie
What is average profit?
Viktor
In 2018 it was $15k and in 2019 it was $30k. This is not including marketing expenses.
Julie
The ROI…
Viktor
The ROI of the business is 50-60%.
Julie
You should be following Viktor on social media, he keeps it real.
How do they follow you?
Viktor
It goes back to The One Thing by Gary Keller
Facebook would be good and LinkedIn – Gratitude, love and giving.
Julie
What would you do if you weren’t in real estate?
Viktor
I would probably start another business! I’m really excited about iBuyer.
Julie
Let’s wrap it up!
What do you listen to or read?
Viktor
I stopped listening to all podcasts because I’m looking for very niche info.
Tony Robbins – I go to his events! Change your state!
Julie
Where do your deals come from?
Viktor
Pierce county.
Julie
Make sure you checkout podcast 63 with Jeff Watson to learn about legal wholesaling.
Make sure you checkout our weekly meetups at https://meetup.com/seattleinvestorsclub! We really dive down to what you’re working on. Any experience level is welcome!
We are also silly! Tuesday’s in Burien at Angelo’s, and Thursday’s at the Milton Lodge from 9:30am to 11:30am, then in Redmond at the Family Pancake House.
There are even more at our meetup.com/seattleinvestorsclub page.
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