When you’re a wholesaler, getting the deal is great. But our value is in who we can turn around and sell it to. That’s what the seller is paying you for.– Joe Hartman
How These ‘Covid Pivots’ Delivered $600k/yr on 1/3 the Marketing Budget w/Joe Hartman and Shane Bloyer
Joe and Shane have been with Carrot since 2014. They’ve made many shifts in their business over the past 7 years, including a strategic downsizing (right-sizing) at exactly the right time.
Using Evergreen Marketing, intentional relationships, and a fresh take on their business, they have transformed their business into what they always knew it could be.
Today we are learning exactly how they did a 180 in their business while dealing with competition, a tough market, and a global pandemic.
Read the Full Show Notes Below…
At the beginning of 2020, Joe and Shane found themselves in a difficult situation. Profits were slim, the hours were long, and the business wasn’t they had hoped it would be.
There wasn’t a shortage of deals, rather, they were spinning their wheels in the wrong direction. It was there and then that they decided to make some big changes in their business.
Simply put, they set out to eliminate all of the things that minimized returns. While the process wasn’t an easy one, the changes they made quickly drove their profits, while eliminating overhead costs. Here’s how they did it…
A Fresh Take
The average wholesaling business will typically follow a similar model. You’ll have a VA, acquisitions team, dispositions team, marketing people, and a transaction coordinator.
Shane and Joe did this, a few different times, with a few different people.
And while they got the process down, the returns weren’t there. They needed to take an inventory of their business to get out of the cycle they were in.
Discovering What They Need
The idea in many of these wholesaling businesses is to grow, grow, grow, scale, and grow again. While some people are able to do this, many will quickly find themselves over their heads.
Joe and Shane didn’t need 60 deals a month, they’re good at 10. Sure, it’s a great model for some, but setting lofty goals proved to be detrimental as the business quickly became more than they could manage.
By refocusing their efforts, they have been able to achieve the profits they dreamed of, without having to chase down tons of extra deals.
A difficult part of this process was letting people go that they were close with. It wasn’t easy, but it needed to be done. By “right-sizing” their business, they were able to reduce overhead, while making it easier to manage. Instead of having a large team, they are now a group of 5-6 who are able to function at a very high level.
Not only did they change the composition of their team, but they also changed their marketing mix. Instead of going after all of the shiny objects, they refocused on what was working: Radio, banner ads, and SEO. They have also gone small with their office space, saving thousands by reducing their square-footage.
They have “right-sized” their business model too. While they dabbled in wholesaling, flipping, and rentals, they realized they weren’t able to do all three well. Today, their focus is on wholesaling and building a business on rock, not sand. They’ve discovered a system they can grow and build upon to create a truly sustainable business.
When it comes to competition, the game is strong in the Baltimore market. Instead of competing, Joe and Shane have chosen to partner. They have successfully formed valuable relationships with many who would normally be considered competition.
They have realized that there is enough for everyone and by working with others who share the common goal of helping others, they have become more successful in their pursuits.
Both Shane and Joe love teaching and have been working on a nuts and bolts wholesaling course that can help anyone get started. It’s in beta-mode currently, but you can reach out to Joe and Shane directly for more info!
Follow Our Guest:
- The Perry Hall Investment Group
- Joe Hartman on LinkedIn