0:02

All right, welcome back to the Washington State real estate investing podcast.

0:06

I'm so excited to be joined by Victor today.

0:10

Uh, Victor, uh, runs the website, uh, and the business I will buy house.com.

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Uh, and we're going to dig into his business here in real estate, uh, up and

0:20

down, uh, the five die five, uh, I five quarter kind of, uh, and even on the over.

0:26

and the East side of the West side of the state in the Bellevue area, that kind of

0:29

area as well. So Victor, welcome to the podcast.

0:32

As we get started, talk a little bit about what inspired you to start, I Will Buy

0:36

House, and how did you start to build this business?

0:39

Well, I had a career that completely made it very parallel, very easy to get into

0:47

real estate. It made a lot of sense.

0:50

You get your degree in nursing, you go to work at the hospital for seven years, and

0:57

that primes you for real estate. I mean, that's the best thing you could ever do.

1:04

No, not at all.

1:06

is. No, so really, I mean, I got into real estate and, you know, wholesaling because

1:13

I looked at a lot of other options of, I've always had like the entrepreneur bug.

1:18

I mean, as a kid, I had a joke that I was like going to create a company called good

1:23

day corporations. And you know, I didn't get into business.

1:27

I honestly probably should have because just the personality that I am right now,

1:30

I'm like, Oh my gosh, what were you doing in nursing?

1:32

But everything has a purpose and that's, that's where it kind of led.

1:35

Mm. So I did, I did all those things.

1:38

I went to WSU, go Cougs.

1:41

Then I got my, oh nice. There, I knew I liked you for a reason.

1:45

That's why. Uh, yeah.

1:49

So I went to WSU, got my degree in Spokane for the nursing program.

1:54

Then yeah, went, worked as a pediatric nurse for seven years in San Altares

1:57

hospital, loved what I was doing. It was very rewarding, very fulfilling, but I wanted more to me.

2:03

To me, working the hours that I did the night shift was grueling.

2:09

I'd work, I'd work sometimes 10 hours, sorry, 10 days in a row.

2:14

And now I work more. Exactly.

2:22

I don't get a day off. So yeah, no, it's kind of like that funny meme is like, I quit my nine to five day

2:28

job and now I work 24 seven.

2:30

Yep. It's owning your own business for sure.

2:33

And then really it was just, you know, I looked in becoming a doctor.

2:36

That didn't work out. I wanted to be what's called a nurse at that nest at this.

2:39

Nesseth this. I don't know. I don't even know how to pronounce it anymore.

2:45

And I was like, I, it's not for me. And then I saw this thing called risk.

2:49

Like, ah, come on real estate. That's like for that's typical Russian thing.

2:53

I'm not going to do that. It's kind of like getting cars, fixing them up and selling out.

2:57

That's so stereotypical. I'm not doing, I'm not doing remodels on houses.

3:02

because I had just had a bad connotation to it.

3:05

But there's tons of money into that, tons of money.

3:07

I didn't know that. And then I was like, okay, well, this is interesting.

3:11

Keeps copying up on my search of like how to make money.

3:14

Because I literally Googled, how do I make money?

3:18

And there was like a post of like various things to sell, like sell books, garage.

3:25

I'm like, I'm not gonna do garage sales and I'm not doing that.

3:29

And then I went, it just kept coming up real estate.

3:31

I was like. Okay, I gotta look into this. I gotta let this, you know, pre-seeking the notion down and see what real estate's

3:37

all about. Then I read some books, I went to a website and after website, I read some

3:44

stuff on blogs. I went to a meetup and that was like, okay, this is interesting.

3:50

And I heard a thing about wholesaling.

3:52

I was like, what is this?

3:55

I've never heard of this, this is weird.

3:58

And they talked about like you could get into real estate with no money.

4:01

I'm like, well, it's not that I don't have any money.

4:03

I have very little of it. So how can I get more money to buy my next word to buy my flip?

4:09

Then I went to a couple of like weekend classes and this is me without having kids

4:14

yet, went to a couple of, went to a couple of classes and they were talking about

4:18

wholesaling. I'm like, I could do this. So I'm going to do three, three wholesale deals.

4:22

I'm going to get enough money and then I'll do my first flip.

4:27

10 years later, I am still wholesaling, barely flipping, and very deliberately,

4:35

and I did do a couple of deals.

4:39

So the first deal, I made like 13,000.

4:43

I was like, yes! That was my first deal, I made 13,000.

4:46

That was like proof to my wife, like, hey, there's money into this.

4:49

This took me, at that time it took me like six months to do that, or nine months to

4:54

make that kind of money. but it was like an aha moment of, oh my gosh, this is one deal.

4:59

You just made four months of a salary as a nurse at that time in one deal.

5:04

How can you repeat this?

5:06

That was like, okay, my wife was like, okay, you made that money, pay us back.

5:11

Then you can reinvest whatever you want back into what you're doing.

5:14

And so she let me do my thing. And I noticed that at some point I was like, okay, my interests are not aligned.

5:22

working seven, seven or sometimes 10 days in a row, night shift, I'm coming home at

5:28

seven a.m. So I was getting off of shift seven a.m., coming home around eight, talking to

5:35

sellers, then going to bed, waking up at three, four o'clock, going to the gym at

5:40

work at seven p.m. and repeating that all over again.

5:42

So I was like, something's gotta change. And the funny thing is I saw a proof of concept, not that I could completely

5:47

replace my income with wholesaling, but I saw a proof of concept.

5:50

And I was like, okay. You got to prove a concept, it's producing.

5:54

And as soon as I pretty much quit my job, I got two massive deals, like $64,000 and

5:58

$42,000. So that to me was awesome, but it was a struggle after struggle.

6:02

Don't think that there's a happy ending to it, because there ain't.

6:06

Because it was like figuring this out.

6:08

Really, wholesaling is about marketing sales.

6:11

It's not about investing.

6:13

People stop lying to yourself that you call yourself an investor.

6:16

You are not. You are not an investor.

6:18

You are a day trader. You are... you're trading your time for money.

6:22

And that's what wholesaling is. And I get that.

6:24

I understand this. I am not into real estate because honestly, because I could take my same

6:29

skill sets. I could go sell, let's just call it surgical supplies.

6:33

I could go sell the next app that comes out, or I could sell a widget, go buy

6:37

something on Amazon and sell that widget. Because it's all marketing and sales.

6:41

That's what wholesaling is. It just so happens to be in the space of real estate.

6:45

And so, you know, 10 years later, I'm still figuring this out.

6:48

I don't have it. I mean, I have, you know, over 500 deals that I've done, but I'm still figuring

6:54

out. I'm still like, okay, what's the next thing that I need to be focusing on?

6:57

How can I improve what I'm doing right now?

7:00

So yeah, that's how I kind of transition into real estate.

7:04

cool. I love it. Everybody's is everybody has such a great story of how they how they got into real

7:09

estate from whatever your background was when you got started.

7:14

So in a year now, so say here in 2024, how many how many deals are you?

7:20

Do you have a goal of how many deals you want to do? How many houses you want to you want to get under contract?

7:24

Yeah, I mean, I'm spending about right now, it's roughly around like 50,000 a

7:30

month in marketing. So if you do the math, if you're saying, okay, if you're going to spend 50,000 in

7:36

marketing, what should you produce from that marketing spend?

7:39

And I like to use a simple rule.

7:41

It's not, it's anything special.

7:44

I don't like the 70% rule. I think it's not very good, at least especially accurate in our market, but

7:49

it's like a rule of thumb. So if you're spending 50,000, you should be making at least four X that.

7:54

And just in gross revenue, not profits, but gross revenue.

7:56

So you do the math, right?

7:59

You should be making at least 200,000 a month.

8:01

And that for me is like, that's like a C minus.

8:04

That's not like great. Where I truly wanna be is a million a month.

8:08

So a million a month, it means I'm spending over $200,000 in marketing spend,

8:13

probably closer to, yeah, 250 is where I wanna be spending in marketing spend.

8:19

So I'm gearing myself for that and you know.

8:24

Before you can scale, you need to first, you know, standardize and optimize before

8:30

you can scale. Because if you're gonna scale and you don't have standard and optimize done,

8:35

you're gonna scale the wrong thing. Whatever your problems are now, they're just gonna be magnified when you try to

8:39

scale. Yeah, a lot of people are like, oh, I started a business, now I wanna scale.

8:42

It's like, oh, hold on a second.

8:45

Standardize first, figure this out, make it repeatable.

8:48

I love that. And so when you're marketing, what are all your marketing channels to get homes under

8:55

contract? Right now it's mainly Google.

9:00

PPC is the main one that I'm working on.

9:02

That's the main one. We do cold calling texting, which is probably going to go away to be honest

9:06

with you. Texting is on its way out.

9:09

We've already been flagged and it's not our fault.

9:13

We were compliant, but the company who was using our account, they weren't compliant.

9:17

And so we got banned. It's like, we were following the rules.

9:21

Why are we in trouble? It was frustrating.

9:24

So we're just now on the tail end of that.

9:26

We got reinstated last week. We're going through the process of Building up our credibility.

9:32

So we're texting. We're also doing paperly channels and my one of my favorite ones SEO God, I love

9:38

SEO. I just I wish I could be better at SEO than I am now But yeah SEO is a great one

9:44

to be had on, just on Google, basically then you're, are you paying for sponsorship spots on

9:49

top of SEO? You mean like you mean when you say sponsorship you mean like ads?

9:56

Oh yeah, oh yeah, oh yeah.

10:00

And then with those ads, uh, for people that don't know, can you kind of explain

10:04

how those work of how you can customize them to be, uh, what are your

10:08

customizations? A location I'm, I'm going to guess is probably one.

10:12

Like you want your ad to be shown in these specific zip codes or these specific

10:16

areas. What other customizations do you have?

10:19

area. You go through the keywords, of course, you're targeting for, because certain

10:27

keywords have different weight to them and different prices to them.

10:31

There's also negative keywords, keywords you don't want to be targeting because

10:35

they don't produce. So it's a campaign within Google Ads that you run that you tailor to.

10:42

that where most of your leads come from? Are they coming through that?

10:44

Is that your number one lead channel? Depends what you mean by most if you're saying number of leads then no it break to

10:51

say number of deals the answer is yes

10:53

Oh, wow. Okay. Wow. Interesting.

10:56

That's great. Well, once you get a home, a house under contract, can you talk a little bit about

11:01

your next steps? How do you determine if you're going to keep that home and flip yourself?

11:06

Or you said most of the times you're turning around and wholesaling.

11:10

So I take it you have a list of investors that you then

11:13

you know, get a home under contract, you're emailing your list of investors.

11:16

Can you kind of walk us through with that? We have a lot of investors that listen to the podcast.

11:20

So just kind of walk through what that looks like for an investor, if they're on

11:23

your list or can be on your list. Now, the day and age of traditional wholesaling is changing.

11:30

And I think that we're going to probably get into some of those things later on.

11:34

But just to kind of a preface is this is a changing landscape.

11:38

This is what, as of April 18, 2024, this is how it is.

11:43

Not to say that next year, or honestly next month, it's going to be the same.

11:50

So if whatever got you from zero to one is not what is going to get you from one to

11:53

two, and that is a huge fallacy people think that that's successful.

11:57

Well, look for me in the past is going to work for me in the future.

12:00

Well, I mean, there's a propensity for success if you continue that.

12:03

However, it doesn't mean that you can't be disrupted.

12:07

Look at Blockbuster, for example. So when I get a deal on a contract, what I used to do is I used to have a list.

12:16

I would work that list and I would network with other people.

12:20

You know exchange lists and whatnot and build up a pretty decent buyers list But

12:24

in because of the volume of leads I was doing consistently I wasn't in a flyby in

12:28

an operation people like oh, man This is a guy is still around holy crap And so I've

12:32

kind of built like a reputation in our community about like the guy who does

12:36

like, you know Sounds like wholesale deals.

12:38

So that was that was great And I've sent it to my buyers now.

12:43

I am going to be give a shout out to an investor left So an investor lift is a

12:46

great tool Robert Winsley is the owner

12:49

him and I are good friends and not just because we're good friends.

12:53

I like the product before really became friends.

12:55

So when he, the first launch investor left, I was like, this is interesting.

12:59

What is investor left? And I really liked the platform because it's a disposition tool that filled a need

13:10

in our community. There wasn't a unified way to, to find buyers.

13:18

So now instead of marketing just to our buyers list we market to a I guess a

13:25

consortium of buyers list and I have a Status in the in the investor community

13:32

called cartel now cartel is the is I think it's called enterprise Level and only like

13:39

the top wholesalers of the nation get into that status.

13:44

It's not cheap, but It's not cheap

13:46

And now, so what I do is I have access across the country.

13:50

I think it's like 4.2 million buyers.

13:53

So in our market, I think alone, I think it's like 35 or 40,000 buyers.

13:58

But that's just, you know. in our market here in the greater Seattle area.

14:02

Wow. Yeah. Wow.

14:10

Yeah, yeah,

14:30

It sounds like a lot, but I promise you it's not that much.

14:35

Seems like a lot to me. I don't know.

14:37

Yeah. one of the questions I asked people asked like, well, hey, is investor lift worth

14:41

it? I, I have no dog in the fight.

14:44

So meaning that it's not like I get a kickback from this.

14:47

The thing is, if you're not an investor lift, you're, you're losing money straight

14:51

up. Man. I, I cringe.

14:55

I cringe when someone says, Hey, I have five buyers on my list and I wholesale all

14:59

my deals to them.

15:01

I'm like, Okay, you're definitely leaving money on the table.

15:08

You're definitely leaving money on the table.

15:11

Good job for those five buyers that you got.

15:13

They've done a great job, but you're losing money on, you're leaving money on

15:17

the table. Because our average wholesale feels, it has gone down.

15:22

It definitely has gone down. It used to be 32, 28, now it's 30 again.

15:29

So, you know, that's, it's...

15:32

I mean, it's not it's not nothing to brag about because I got a really good friend

15:35

in San Diego who's averaging, I think he's at fifty five wholesale.

15:39

So he's in honestly San Diego is not better than our market.

15:43

It's not actually a better market.

15:45

But, you know, who's operating will determine that.

15:49

But if the more buyers you have, the more people who are looking at your deals.

15:54

So market demand, right?

15:56

More people looking at the deal, more people will want the deal, more options to

16:00

wholesale the deal to. I love that.

16:03

Well, let's talk a little bit about the future specifically here in the in the

16:07

Seattle metro area Around wholesaling and the work that you do in your company How

16:13

do you see this the current landscape now and kind of what do you see kind of coming

16:18

or what do you think the future holds? for wholesaling

16:22

Well, wholesaling is definitely going to change.

16:24

It's definitely, definitely going to change.

16:27

And I also see that real estate agents that's going to change too.

16:31

So I hopefully no other realtors get offended by this, but that industry is

16:37

ripe for disruption.

16:39

And so is wholesaling. And here's, here's why I say that realtors it's been around that model for a really

16:49

long time without very much innovation.

16:54

And with lack of innovation comes the prime for something someone to disrupt

17:01

like I said earlier the Blockbuster and Netflix everybody knows that story

17:06

literally everybody knows that story blockbusters like hey, this is my our

17:10

corner of the market There's no way, you know, anybody's gonna come here.

17:14

They had the chance to buy Netflix I think for like yeah for like 30 million dollars.

17:19

That's like pennies on the dollar I know, that's so crazy, huh?

17:22

so what they came with is like this new technology to be able to, uh, to rent DVDs

17:29

online. Yeah. And they change it to a streaming platform and that right there was a massive game

17:36

changer. What, what problem did it solve? You have to ask yourself what problem did Netflix solve that blockbuster did?

17:44

For me, it's not having to return your VHS tape.

17:49

Well, first of all, that was a scam because it was like you could have bought

17:52

you could have bought that movie But the time you know the all the late fees you

17:56

put you paid so the pain point installed was convenience Okay, it you could sit at

18:03

home Click a button and Watch a movie You know, what steps did it remove?

18:11

Go into the store Renting the movie driving back returning it

18:17

There are so many steps in that.

18:20

And Netflix said, don't even drive anywhere.

18:24

You could, at the comfort of your home, click a button.

18:28

Don't have to return anything. Don't have to go anywhere.

18:30

It's right there. They removed so much steps in that.

18:35

And look at the realtors right now.

18:37

There's so many steps in the process.

18:41

So many steps in the process. And I don't know what that change is going to be for them.

18:45

I feel like there's going to be a technology disruptor, maybe AI, who knows?

18:50

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 have a trust, a relationship with people.

19:07

That's really hard to disrupt. It really, really is.

19:11

So same thing with wholesaling too. companies out there who had millions and millions of VC money to try to disrupt

19:19

wholesaling and they failed the reason they failed because they treated people

19:23

like a commodity like a number and That's where the part they failed So I feel like

19:29

there's going to be a change happening in wholesaling that will disrupt The market

19:35

and you could actually kind of see some of things happening right now Oklahoma has

19:39

pretty much outlawed wholesaling. It will know you can only wholesale one deal

19:44

Uh, South Carolina is trying to pass a law in the place that says, if you have an

19:48

interest in a contract, you cannot sell that contract to anybody else.

19:56

Hmm.

19:58

Wow. unless you have, I think it's unless you have your realtors license or something

20:02

like that. So there's already a couple of states out there who have a target on wholesaling.

20:10

So it's going to get disrupted. I know that.

20:13

So for me, it's like, OK, well, how can I do that?

20:15

And so some things that has changed vastly is innovations.

20:20

Do you know what a novation is? Cool.

20:23

Maybe I shouldn't say that. Innovation is another way to almost wholesale.

20:31

It's not the same thing as wholesaling. It's being able to offer a seller a lot more money than a wholesale and still get

20:38

them to the end result as long as they're okay with the timing aspect of it and the

20:45

access piece of it. So if they're okay with that, we could actually offer them more money.

20:49

So that has been a massive disruptor for wholesale, a massive disruptor in 2021.

20:57

January, we're like, holy freaking crap.

20:59

We only are gonna make like 200, 150,000 that month, which is not a lot.

21:04

It's not a lot of money. People are like, oh, Victor, you're doing so great.

21:07

It's like, you don't know all the numbers.

21:09

You know, there's a lot of burn rate we have in our company, right?

21:13

And so to sustain this organization, like $50,000.

21:16

Like I'm like people are like, oh wow, you closed 50,000.

21:19

I'm like, yeah, that just paid for our marketing.

21:22

Yeah, I broke even. Yeah.

21:25

So we were like making 50,000 that month and I was like freaking out.

21:29

I'm like, this is crazy. And then my buddy is like, well, I met with him at a mastermind and he was

21:35

talking about this thing called innovations.

21:37

And he was like, yeah, man, I could do a deal, you know, listing on the MLS and I'm

21:42

like, what? And he tried to explain it to me.

21:45

I'm like, bro, once you figure that out, come but talk to me.

21:48

Otherwise, I'm not gonna try to introduce this thing because it's working for me.

21:52

Right now, Wholesale is working for you, but I change it.

21:54

Yeah. Blockbuster.

21:56

wasn't. Yeah, and so then we started in February.

22:02

I went to my buddy, learned the process.

22:05

Then we started doing it in February.

22:08

March time, we're like seeing wholesale innovation 50-50, and then February, bam,

22:13

we make like 750,000 that month in April.

22:18

So it's a massive disruptor.

22:20

And right now, most of my deals are innovations.

22:23

I don't do as much. of wholesaling anymore.

22:27

And we're primarily a innovation company now.

22:30

And so that's a disruptor in the wholesaling space.

22:33

So there's, I feel like it could be another disruptor.

22:35

I call it wholesaling 3.0.

22:38

And that's a whole new ballpark that we can get into.

22:43

Yeah. Do you, do you feel like we're, are you finding more, uh, more homeowners looking

22:50

to sell their homes right now? Do you feel like the way the economy is going, uh, interest rates, aren't coming

22:56

down. People are locked into these homes.

22:58

Uh, are you seeing, are you, are you seeing more leads come in or you're doing

23:02

more deals or anything around that in the future that you're kind of keeping your

23:07

eye on? The cool thing about real estate is it's a necessity.

23:16

You have to have a house. You have to know, you have to sleep somewhere.

23:21

So it's a necessity and what determines our lead flow is how much money we're

23:26

willing to spend. That's what really determines our lead flow.

23:30

At least in this market, I can't say, back in 2006, 2008, that could be true.

23:36

So the interest rates that are... People are very afraid of and what and they do definitely impact, but we have to

23:42

learn what the new normal is.

23:44

Right. This is the new normal. 7% interest rate is the new normal.

23:48

We need to now need to adjust how we spend, how we look at things and how we

23:53

calculate our numbers to adjust to this new normal.

23:56

But there's just a massive, and I want to say it again, massive under supply of

24:02

inventory in the market, massive disruptor of inventory.

24:06

So the demand is up here, the supply is here.

24:09

There's a huge gap and that's why we're still seeing, you know, deals being had,

24:14

even though the interest rates are high.

24:16

Yeah. And I think we're seeing that across the state of Washington.

24:21

All of our rental properties, we have a bunch of rental properties over in Spokane

24:25

and it's the same thing in Spokane too. It's just the, the supply is not there and the demand is still through the roof.

24:33

Even as you know, there are, there is more supply hitting the market, but it's not

24:37

even close to, to be able to meet the demand yet.

24:40

We're not seeing those numbers really drop. So it's very interesting just here in our state.

24:44

I think we're gonna be in that market for a while yet.

24:47

And we still have more people moving into the state of Washington than we have

24:50

moving out. We're in it, you know. So it's gonna be really interesting, I think, especially in the greater Seattle

24:55

area here. I mean, there's so many homes and so many people moving constantly.

25:00

I just feel like there's always people shifting either from Seattle to Bellevue

25:04

or Bellevue to Seattle or North to South.

25:06

There's just so much movement around here that I think there's probably gonna be

25:09

opportunities like this for... for quite a while in the current market that we have.

25:18

Yep. There always will be opportunity. Yeah. well, Victor, thank you for spending some time with us today and really talking

25:23

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?

25:33

Yeah, my IG, which is Victor GLG, which stands for God, Love and Growth, and

25:40

Facebook, right? Victor dot Rybichuk at whatever handle that is.

25:45

Yeah, Facebook. I don't know. Awesome.

25:48

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 well as investor lift, we'll make sure that

25:58

makes it over there. If anybody wants to take a look at that, and you haven't heard of that platform

26:01

yet, I will make sure that's in the show notes as well.

26:04

Victor, thank you for spending some time with us today talking about your business

26:07

and wholesaling here in Western Washington.

26:11

Cool, absolutely.