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In today’s competitive real estate market, finding creative ways to capture motivated seller leads is essential for investors looking to scale. Hayato Hori, founder of Rocket Offer, has built a thriving virtual wholesaling business from California while investing primarily in the Midwest and beyond. His journey from a $15,000 side hustle to closing deals with institutions is a roadmap for anyone who wants to build a scalable, remote real estate business.
From California to the Midwest: Starting With Limited Capital
Hayato began investing right out of college, but California's sky-high property prices made it difficult to get started. With just $15,000 saved from college side hustles, he bought his first rental in Memphis, Tennessee, through a turnkey company that handled renovations and tenant placement. That property cash-flowed every month, proving the Midwest's potential for cash-flowing investments and setting the foundation for Rocket Offer.
Learning Through a Roommate’s Turnkey Business
Hayato's first exposure to real estate came through his college roommate, who operated a turnkey business. This model inspired Hayato to explore cash-flow rentals outside of California, ultimately leading to his first property purchase in Memphis.
Going Virtual From Day One
Living in California, Hayato structured his operations to be 100% virtual from the start. When Rocket Offer launched in December 2019, COVID hit soon after, but their remote-first systems were already in place. By partnering with local boots-on-the-ground professionals and using services like Inspectify, Hayato built a workflow that allowed him to source, inspect, and close properties without ever visiting them in person.
Key components of his virtual system include:
- Local partners to walk and photograph properties
- Nationwide inspection service (Inspectify)
- Robust communication and project management systems
Launching Just Before COVID
Rocket Offer launched in December 2019, just before the COVID-19 pandemic began. Luckily, their virtual-first business model allowed them to continue operations without disruption, while many others had to pivot quickly.
Building a Lean, Scalable Marketing Machine
Hayato initially hired 10 cold callers on Upwork to generate leads, learning through trial and error what worked. Eventually, he discovered that:
- Investors can guide your acquisitions by sharing what they're buying
- Cold calling is effective but has limited daily capacity
- Text message marketing provides more volume and faster results
- Postcards and paid ads offer mixed results depending on the market
Over time, he refined the lead generation engine to focus on the lowest cost-per-deal strategies, adapting quickly to market shifts.
Reverse-Engineering Buyer Needs
Early in the business, Hayato and his team reached out to investors first to ask what types of properties they were actively buying. This helped them reverse-engineer their acquisition strategy and tailor deals to match investor demand.
Tech Stack and CRM Evolution
Initially using Podio, Hayato found it wasn’t customizable enough for their needs. He switched to Zoho CRM, which integrates tools like:
- Zoho Sign (alternative to DocuSign)
- Zoho SalesIQ (live chat on their website)
This move allowed the team to streamline workflows, automate more tasks, and respond faster to both sellers and buyers.
Lessons From Cold Caller Turnover
Out of 10 cold callers initially hired through Upwork, only a few proved to be effective. One of those early hires remains a core team member to this day. This experience taught Hayato the value of testing and refining team talent early on.
The iPhone 2 Photo Problem
Many sellers submitted poor-quality photos of their properties, sometimes using outdated phones like an iPhone 2. This led Rocket Offer to begin hiring local photographers to ensure clear visuals for potential buyers.
Zoho SalesIQ for Live Lead Interaction
Beyond just CRM use, Zoho SalesIQ enabled live chat capabilities on Rocket Offer's website, allowing their team to engage visitors in real time and convert traffic into active leads more effectively.
Disposition Strategy: From Mom-and-Pop to Institutions
In the early stages, Hayato sold deals to smaller local investors. He quickly realized the need for high-quality presentation materials to appeal to these buyers:
- Professional photos
- Comprehensive inspection reports
- Clean property summaries via RocketOffer.com
As the business matured, Hayato began wholesaling to institutional buyers. While many institutional funds paused purchasing in 2023, his diversified buyer base—which includes mom-and-pop investors—allowed Rocket Offer to maintain stability.
Understanding Buying Cycles
Institutional buyers could close 20 to 40 deals per month, while mom-and-pop investors often needed 3 to 6 months between purchases. Recognizing this discrepancy helped Rocket Offer align deals with the right type of buyer.
Holding Rentals and Section 8 Strategy
In addition to wholesaling, Hayato also holds rental properties, primarily in Detroit. He strategically rents to Section 8 tenants due to several benefits:
- Rent often exceeds market rates
- Government guarantees monthly payments
- Tenants tend to maintain properties well to retain vouchers
Hayato noted that Section 8 inspections, while strict, help keep properties in top condition. Additionally, raising rent through the program is possible without directly affecting the tenant’s portion.
Why Section 8 Tenants Care More
If a Section 8 tenant damages a rental, they risk losing their government voucher and may be unable to secure another subsidized property. This high consequence often motivates them to maintain the unit better than cash tenants.
Tenant Incentives and Market Psychology
In markets with softening rents, Hayato has observed property managers offering creative incentives like gift cards instead of rent discounts. While he hasn’t had to use these strategies yet, he sees psychological merit in offering visible perks like a $300 gift card over traditional offers like first-month-free rent. These strategies can be useful in tight rental markets.
Psychological Edge of Gift Cards
Hayato observed that tenants may respond more favorably to a $300 gift card than to a free month’s rent. The gift card feels like instant money, creating a stronger emotional incentive to move in.
Disputing Property Tax Assessments
In rapidly appreciating markets like Atlanta or Florida, Hayato advises landlords to dispute tax assessments. He personally hasn’t needed to in Detroit, but recognizes that inflated assessments can significantly cut into cash flow. Proactively challenging assessments can yield refunds and long-term savings—something every investor should consider.
Use Photos to Win Tax Appeals
When disputing a property tax assessment, Hayato recommends submitting photos of the property's condition, especially if it requires major repairs. This tactic has helped other investors successfully lower their tax bills.
Building a Virtual Team With Upwork
Upwork has been central to Hayato’s ability to scale. From hiring cold callers to project-based contractors, he’s been able to delegate tasks without the overhead of full-time employees. Upwork's flexibility allows him to:
- Hire globally at competitive rates
- Scale team size based on workload
- Test skills before committing long-term
From oDesk to Upwork
Hayato started using Upwork back when it was called oDesk. His early experience in hiring digital marketers helped him understand how to build virtual teams long before launching Rocket Offer.
Discovering Section 8 From Tom Cruz
Hayato first learned about the profitability of Section 8 rentals from real estate influencer Tom Cruz on TikTok. This sparked his interest in purchasing properties already leased to Section 8 tenants.
Key Takeaways
Start Small, Think Big
Hayato Hori began his real estate journey with only $15,000 and strategically bought his first property in Memphis—a cash-flowing rental—after realizing California’s prices were too high.
Virtual Setup from Day One
Operating from California, Hayato built Rocket Offer as a 100% virtual wholesaling business with systems already in place before COVID hit.
Midwest Focus for Affordability and Returns
Hayato targets cash-flow-friendly markets like the Midwest, Detroit, and Memphis where entry costs are low and rental yields are strong.
Leverage Local Partners and Tech Tools
By using boots-on-the-ground inspectors and tools like Inspectify, Zoho CRM, and Zoho SalesIQ, Rocket Offer manages acquisitions remotely with high efficiency.
Cold Calling + Texting = Motivated Seller Leads
The most effective marketing methods for Rocket Offer are cold calling and SMS—offering low cost per acquisition and scalability.
Investor Feedback Shaped Deal Strategy
Early success came from reverse-engineering acquisition criteria based on what local investors were actively buying.
From Mom-and-Pop to Institutional Buyers
Hayato scaled from selling to individual flippers to working with institutional funds—though he’s diversified as funds have paused buying.
Section 8 Rentals Provide Stability and Profit
Section 8 tenants offer guaranteed rent, often above market rates, and tend to treat properties well to avoid losing their vouchers.
Creative Tenant Incentives Work
Offering $300 gift cards rather than free rent can be more psychologically attractive to tenants—helping maintain occupancy.
Dispute Property Taxes Proactively
Especially in high-growth markets, disputing inflated tax assessments can generate refunds and long-term savings.
Upwork is a Hiring Engine
Hayato built his virtual team using Upwork, starting with cold callers and expanding based on task-specific needs.
Resilience and Flexibility Matter
Pivoting quickly, testing strategies, and refining based on performance have been key to Rocket Offer’s sustained growth.
You Don’t Need to Be Local to Succeed
Hayato’s story proves that successful investing doesn't require proximity—just smart systems, consistent execution, and adaptability.
Ready to Build Your Own Remote Real Estate Machine?
If Hayato Hori’s journey has shown us anything, it’s that location doesn’t limit your ability to succeed in real estate. Whether you’re working with a small budget or scaling into institutional partnerships, building a virtual wholesaling business is more achievable than ever.
Start discovering motivated seller leads using cold calling, text marketing, and a virtual team. Leverage CRMs, explore Section 8 rentals, and don’t forget to challenge those tax assessments.
Success in real estate is about smart systems, adaptability, and building the right team—regardless of where you live.
Contact Hayato Directly
You can connect with Hayato Hori on Instagram and TikTok via the handle @hayantoo.
