How to Leverage the Right Leads to Build a Sustainable Business Model in Real Estate
Hey, real estate investors! It’s Gary Boomershine, and I’m back with another video to share with you. Today we’re watching an interview with Tampa, Florida-based Rafael Vargas, the “new gangster” of the REI world. As a real estate wholesaler, he’s been posting $4 million in sales annually across multiple markets, and he’s got some awesome advice to share with us about the secrets to his success. Let’s go over some highlights together:
1:20-5:00 Talking History
Rafael and his partner Javier have been working together for about six years now, and their model has proven highly profitable. They got their start in Rafael’s mother’s basement during a time of financial turmoil for both of them. Rafael was working at a dental office making $13 an hour at age 21.
His mom was working two jobs and going back to school to earn more money to take care of the family. Both Rafael and his mom were working hard to help support his disabled younger brother, and every day was a struggle. A man who claimed to work in real estate came into Rafael’s job and paid for $20,000 of dental work up front. Rafael asked him if he’d be willing to teach him how to earn money working in real estate and the guy agreed, for $3,000.
Rafael sold everything he had and ended up being scammed and learning nothing. Fortunately, he didn’t give up and now attributes his success to always investing in himself and his own self-improvement. He started by researching wholesale real estate trading.
Rafael found his first deal by using cold calling techniques he learned online, and he closed that deal for $30,000. He now averages $4 million annually in revenue, has a 5,000 square foot office, and oversees a team of wholesale real estate experts across eight markets. Not bad for a real estate entrepreneur under 30.
5:00-12:00 Meeting Rafael/Explaining The Model
We were down in Tulum, Mexico, at an REI retreat, and Rafael comes up to me to pick my brain about how to keep improving his business model. We talked about how he asked great questions and displayed a unique humility for someone so young and new to the REI world.
Next, we start talking about how Rafael’s business model works and how he has managed to keep increasing his revenue year over year. There is a strong element of working local markets virtually, and adding new revenue that comes from search leads for wholesale real estate buyers searching his local markets. Most of his business comes online or over the phone, and he’s able to close most of these deals fast.
Rafael further describes how he establishes relationships with local real estate agents in each market where he trades leads he can’t use in exchange for wholesale real estate leads. Both parties benefit, and Rafael’s company has the advantage of someone who knows the lay of the land in each market and knows the local players, too.
13:00-15:00 Talking REI Vault and Marketing
Lead generation has been critical to Rafael’s success. He has found the REIvault system of lead generation through market research, data analysis, and mass marketing campaigns has been extremely useful in combination with his wholesale real estate model.
Rafael also discusses how his marketing plan of using multiple marketing streams affects his business and allows him to continue to grow and add revenue consistently. There’s no magic to it as far as he is concerned; it’s just about working the system in every market and putting the work in to get those deals and close them.
15:00-20:00 Things We Wish We Knew About Real Estate Investing
Our conversation continues as we talk about learning from mistakes, overcoming challenges, and closing deals the right way without the need for renegotiation. Rafael shares what he wishes he knew about buying properties in the past, and I talk about lessons I’ve learned the hard way as well.
20:00-30:00 Talking Scale
One of the most challenging aspects of running a successful real estate endeavor is scaling the business as you grow. Rafael talks at length with me about his solution to scalability problems, and he provides step-by-step advice to outgrow your competition while maintaining your stability. We round out the conversation sharing insights about marketing at scale and provide some general tips for growing your marketing as the business grows, too.
Rafael has built an impressive real estate business from nothing, and his combination of hard work, humility, and hustle have helped him establish a multi-million dollar organization. Are you a real estate investor? Do you want to increase your market reach and grow a stronger real estate investment business?
Visit us at reivault.com to see if your business qualifies for membership. With REIvault, you gain access to the expertise and knowledge of experienced investors like Rafael, who are members of our network. There’s plenty of money to be made out there, so visit our site and contact us today.