On episode #2 of Real Estate talk with Randy Stedwell, We are having Michael Hasso the founder and CEO of Inheritance Capital. Prior to starting Inheritance Capital, Michael spent 5 years in full-time ministry on college campuses. We will talk about how he got started in real estate and how he made the transition from Ministry college to Real Estate.
This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.
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Hey everybody how's it going out there in YouTube land and out there at Metro
Detroit off-market Real Estate Group so what I'm doing here is I'm just kind of
getting set up real quick because uh here we go
all right so today we have a special special occasion
a special uh guest Michael Hassell and
his awesome guy awesome flipper like you know I've had the the pleasure of
actually meeting him when I'm out there networking um so I really want to say thank you for
him coming on um but to get to get things started you
are this is real estate talk with Randy stedwell we are here on YouTube we are
also here on uh Metro Detroit off-market Real Estate Group okay on Facebook so
come watch us there if you have not subscribed on YouTube watch us on
YouTube and hit the Subscribe like all that good stuff so with any further Ado
I'm gonna have uh Michael hasso and come
bring him on and then if you have any questions during this whole thing ask
them in the comments put them down in the comments we will uh we'll answer
them as we go and go from there so uh you bring in Michael how's it going
or is it Mike or Michael um Michael Michael all right so
Michael how's it how are you doing today everything everything good doing well doing well yeah just staying
busy lots of flips going right now and stuff so that that's what I like to hear
you know we want to and at some point I don't know if you feel comfortable with
breaking down a deal or anything like that that's up to you um but I think I think some people would
like to whether it be a past deal that you no longer do anything so
um yeah and it could be uh one of the most frustrating deals or it could and
or the most profitable whichever you prefer or both yeah so I've actually got
two things for for everyone watching today one is going to be my worst deal ever oh okay and then the second one
will be actually a deal that I have that I'm looking to find a buyer for so
awesome so all right so let's get this started with you know first off who are you what
do you do and you know let's talk about you for a little bit before we get into
how you became really got in real estate yeah so
um I'm I'm originally from like Northern Michigan um pink hunting area it's a small town
just north of basin and so I I grew up on a farm stuff like
that and part of my background that I mean it kind of relates to real estate
in a way but like okay I'll say for my parents um they add some rentals and stuff like
that but it was more of like I'll say they were they were more like accidental landlords
okay houses that um you know maybe it was like a family
member that passed or it was uh yeah you know a house that they saw a crazy deal on or whatever you know those sorts so
it was it was more like um accidental landlords as far as real estate goes
um but it it definitely set the groundwork I'll say years before
so that's that's awesome so you know they your parents Inherited property you
said and that's how they became landlords kind of like accidental yeah so
um so my dad is well he just recently retired from farming
uh and so what has happened um at times there's you know pieces of
property where sometimes there's a house attached or or whatever or it's own all
the Farmland around and there's one house there you know so for various
reasons they they ended up picking up some you know residential real estate
and stuff like that okay so so yeah that would make their main thing
um like for me that's that's my full-time job right now is flipping houses and
so that's awesome yeah so so that's why we should be listening because you're in
the trenches you're doing it and you know you're you're out here making all
the mistakes and here to tell us about it so we don't make them right yeah absolutely yeah all right so
um you know my work deal that I'm gonna attack exactly because you always learn
more from the worst deals than the best deals like no one no one really wants to go on here and hear about like oh the
best deal ever that you know it was so easy and I made you know whatever
I have learned more than uh more from any from all my I've learned at least
one thing from all my deals even the one that went the smoothest
I also learned not to expect that so but for the most part you know you
have to learn something from every deal no matter what yeah yeah so tell me a little bit about
before we get into your worst deal um tell me a little bit about you know
your past and how you got into real estate did you just wake up one day and be like I want to start flipping horses
uh no it was it was a much longer Journey than that I would say the first
thing that kind of really piqued my interest around real estate investing in particular was the classic answer Rich
Dad Poor Dad I read that when I was
like end of high school early college something like that
and I just found it fascinating like I mean I knew from a pretty young age that I wanted to be in business that I wanted
to be an entrepreneur um I didn't realize it was going to be real estate
um that definitely attracted me to it and helped me to see a whole nother side of
it and I think especially like um just the scalability and how the
wealthy use their money and use um real estate as a vehicle to grow their wealth grow their income
I mean I think that was huge for me but from the time I read it to the time
um I actually started real estate and investing it was I don't know maybe 10 years or so
um because I I actually I actually didn't know anyone that was
doing real estate at a high level okay basically everyone I knew growing up
because my my parents had lots of friends that you know owned one or two rentals that sort of thing
um which is good yeah what you know certainly not something that you can live off or
become like you know really wealthy if you just having two or three you know
you're not gonna get you're not going to get rich off of one or two rentals you know I don't care where you are what
you're doing you're not going to get rich off one or two rentals so yeah unless it's a massive multi-family or
cute I mean and even then you're not gonna get rich you'll just be able to live off of it
you know yep yeah exactly so that was like I think that was like the
big um the big turning point for me in reading that book and kind of like sewed the
seed for later that was that I realized oh this can be done at a much higher level
and so somewhere in between there um my investing Journey actually started
with stack investing um okay which is probably unusual I haven't really clear
to any other real estate investor that said that person well
technically I kind of did that I started with stocks before I got into real
estate okay so now I lost a lot of money in stocks and then got new real estate
yeah but yeah so yeah for me so I get I got started
investing in stacks and I was just I was just interested in investing in general how
do I grow my money how do I multiply it how do I um buy back my freedom you know yeah yes
and so like um I did I did pretty well with stack investing and I it's something I still
enjoy but one of the things that um was key for me in making my decision
to pursue real estate was one I was listening to you know like some of
the best uh one of the best stack investors that I
knew you know just kind of like how people follow like Warren Buffett or you know yeah high level investors
and they were all saying how like well yeah I do stacks but like I invest in real estate
like I do stacks but I have apartment buildings or you know whatever yeah it
was like interesting so all these like top-notch
um stack investors they're all also in real estate and I was like
what they're doing really well in the stock market so why would they be in real estate so it it like got me thinking and I actually
saw this very interesting article um where it had like the average returns
over like 150 years comparing real estate to stocks
okay 150 year average guess what Real Estate One
100 yes real estate averaged I think one or two
percent more over that time on average which means like you know if you ever
look at any of those graphs that like uh you know financial advisor 401K whatever
that they show but like if you if you compare those returns and you adjust it by one percent
up or down over the long haul that that can make the difference of Millions
you know so anyway all all of these things were kind
of going through my mind so I was just like really interested in investing and real estate was kind of like The Next
Step It was kind of Uncharted Territory for me um okay and it was I was really really
interested so I started you know sort of looking for for opportunities as
far as like okay well where do I start like I don't I didn't like I I had never heard of wholesaling
the only thing that I really knew of in real estate was um either landlord for like single
family or flipping what I didn't know anyone that was flipping I knew some people that had
single family but it wasn't like scaled by any means yeah and I didn't know
anyone that had any large multi-family so I had like almost no connection
really to really right so that was an interesting journey in
itself and so but anyway so my my wife and I
though both had a desire to pursue real estate her um her parents as well like kind of
dabbling in the small multi-family and stuff like that yeah and
and so anyway anyway some somewhere along the way um we ended up attending a real estate
seminar um ended up basically how we got into real estate was
um through the Rich Dad education company mm-hmm um and so you know we
we went through that and honestly it was um it was just great like we we learned a
lot in a very short period of time so so at the Rich Dad
um you know education community that now right now I know like he made a whole
business out of that book and this whole series like he made a huge he still does
it today uh Robert Kiyosaki as a the Rich Dad podcast
um you know so he's he's constantly out there and I have a small yellow YouTube
channel but if for some reason he's watching I'd love to have you on here Robert
but yeah it changed your life so that that book and and his education really changed
their life yeah because like I mean there's there's a lot of different
Pathways that people take into real estate but I like I don't necessarily
think this is the right path for everyone but for me it's you know pretty
well just because like I said I didn't have any connection I didn't have any
connection to realize I literally had no idea what wholesaling was and now I like run into people that are at their first
like real estate Meetup or whatever and they're like oh yeah I wanted to wholesale for years and I'm like how
have you even heard of wholesale because that it was just like so far removed from yeah from like experience
because I didn't have any connections yeah so if I've known about wholesaling
I would have gotten to real estate a long time ago and I was like you I read Rich Dad uh
Rich Dad Poor Dad went you know just got out of high school and so on and so forth and I'm like I thought I need a
bunch of money in order to get into real estate and so I was you know obviously
working the grind and doing all that and it wasn't until after Kobe once coveted
hit and everything I started learning about I I started actually just before that and I started to try to figure out
like what can I do to get into start doing flips and that's how I came across wholesaling
yeah so that it's just it's crazy I'm like I can actually do this with very
little you know it's nuts so yeah sorry didn't mean to interrupt
or take the spotlight no no I mean like it like I said I would as
far as especially real estate goes like I was at square one yeah like if you
just consider like anyone here that's even heard of wholesaling before you're
like three steps ahead of where I was so okay yeah the idea of wholesaling was
a very novel concept and I was like that sounds awesome so that was actually where I started what year was this
um let's see I've been uh I've been in real estate a little over three years so
it was like when it was 2019. okay so just before Kobe started yep yeah
okay so yeah it was yeah not long before Cohen yeah
all right and and so
um anyway like where I started was wholesaling okay so
I I heard this you know this whole concept laid out and I was like this
sounds awesome right and so I I promptly start marketing
yeah um you know I I think um the first one that we got a hit on was a
Craigslist ad that we did okay um Craigslist really does work this deal by the way did not work out for us but
it was our first one like under contract and I honestly the big the big thing was
we took action like right away you know we we we went out and we started
marketing um so so wait a minute you did not spend a year just watching YouTube and
watching people do their stuff and just like okay how do you do that and wait
until you get everything perfect before you actually took action now
anybody out there watching take action that's how you're going to
learn you can learn a little bit here then take action learn a little bit take
action if you just try to know every try to get everything and try to get everything perfect it's not going to
happen okay you're going to make mistakes sorry to interrupt but it was just no yeah you
know I I talked to new investors all the time like um at meetups and stuff like that and I
hear people saying stuff like oh well I gotta get my entity set up first and stuff like that and I'm not here to give
legal advice but I will say that you don't need an entity or a bank account
for that entity until you have a deal like until you're bringing in money like
yeah you know so and not to say it's not important and I'm not saying to like put
it off by any means um but I am saying that like your first priority is really
marketing and how do I get how do I get a deal and you know you can be setting
up that other stuff while you're doing that but priority number one is marketing
and so so yeah we we took action pretty quickly um I mean I would say
from the time where we like made the decision uh like okay we're doing this uh it was
we were probably marketing within like a month maybe okay and mind you like
30 days prior to that prior to when we made the decision
I was still at the point that I had never heard of wholesaling okay so that wasn't sure
oh I'm talking like 30 years ago okay so you were trying to get a deal but you
didn't know what wholesaling was no so one when we first started like
actively pursuing deals I knew what wholesaling was okay well I I had just
learned about it like seven days ago
so try by fire that's it you know and just just like the uh Julie here says
just get the deal just get that deal so yeah 100 percent
yeah so so we started we started marketing we got our hit off of uh off
of a Craigslist ad and it was it was a pretty good one in in some ways so it was
um the motivation for the seller was uh it was like probate
uh I wanna there was there was like some Financial issues I want to say there it
was um maybe Pat I think they were approaching foreclosure as well uh okay
they they had multiple things going on that would make them motivated to sell
yeah now one thing that didn't work out so well for us was it
wasn't a great area um you know it wasn't a terrible area but the property values weren't very
high like to the point where I think
arv was probably best case scenario like 20 000 or something okay
so was this in the area where you grew up
or was this uh this was in Flynn and Flint okay yeah so anyway we
we drove there got the contract got things going like learned all of this
this was all like great training for future deals because we got our
contract in place we got figured out how to fill them out fill it out lead them
through that process you know build trust and rapport with the seller you
know all of that stuff so we get it under contract super excited we don't have any buyers by the
way but and of course if you're seven days in yeah no I know
but if I was to get if I was to like start over again start with the buyers
yeah start with the buyers find out where they're buying reverse engineer it but that's not what we did so we got
we got this deal from a Facebook editor from a Craigslist ad and we start
marketing to try and get the sold we get title work going and stuff like that and
that was that was a real learning process so this whole this whole deal we had it under
contract for like six months wow that is normal not advised no
and I know that you Randy as a wholesaler know how much must have been
going wrong for us in six months now I've had that happen
to me before yeah it happens but yeah but it it was also
our first deal but it let's just our first our first contract I'll say that
yeah most of the time if you have it for six months you usually don't close on the
deal the one that I had for six months I ended up closing on the deal so it was
it was a probate issue this was this was a probate issue as well yeah
so I I brought it to um our title company that they work with
a lot of investors they've kind of seen everything they do all the creative
stuff that we're looking for yep as investors
and I brought it to the title agent and he was like this is the most complicated title work
I've seen in 15 years [Laughter] and I was like well lucky me so you
never want to hear that basically what happened was there was a
dead guy on title which is never fun yeah um
it needed to go through probate but it hadn't yet
don't know how it I don't know it was like the Probate Court missed it or something but like nobody was aware that
it needed to go through probate because there was still a living owner you know
yeah so we were going through all of this stuff there was by the way another guy
on title who was in prison um you know it's like
it was one mess after another but like I said learn to learn probably my biggest mistake in that deal
in particular was letting it go on so long yeah I probably which it's hard because
it's like when you have like even three months invested into you know a property under contract and stuff like that it's
like man you don't want to let that go but then
I was like I wasted like another three months consumed by this and didn't get
the get the deal done yeah so that was a Learning lesson one other
lesson for that for for viewers as well what I learned from that experience was
when I I in that case at least yours worked out obviously but in this case I
wish I had let it go sooner yep and then the other thing was I
shouldn't have been so focused on one deal if you if you want to make
certainly if you want to make a living in this business um but especially if you're uh
if you're even just trying to make good consistent money in real estate you have
to have multiple irons in the fire yeah like yeah yeah you've got to have
multiple contracts you got to have multiple deals going you know stuff like
that but everyone starts somewhere so it's like once you get something okay great
manage that deal but don't give it your full attention until you know it something
you know just keep it moving forward things or find more deals
even when it is something the thing is it's all about time management you know so you've got to allocate okay
these are my current deals these are my follow-ups I I'll spend this amount of time with the current deal spent this
amount of time with the follow-ups and spent this amount of time getting new leads you know yeah so once you hit that
like you gotta move on you know okay great I I'll follow up with you
next week yeah that's it and actually this deal
wouldn't have been so bad like I said like you just said if I had done better
which it's hard to do on your first deal because you know everything's new yeah but yeah if I had managed my time a
little bit better of just like not not devoting so much time to it before I
had reasonable certainty that we could get this that that would have helped too
that is one of the top mistakes that's one of the top mistakes I see new
new people doing with not not just wholesaling but real estate in general
is they concentrate so much on just one deal and whether that goes through or
that falls through now they don't have another deal right after that and now it
took them say five months to get that deal done and now they spent the during that five
months they didn't spend getting new deals so now they got to spend another two to three months trying to find
another deal you know and you know versus trying to feed the
the the wheel you know yeah so because most of your good leads
come up from through the follow-ups they don't like even in your cold call you know most your leads or most of your
deals they're not going to say oh yeah I'm ready to sell it give me exactly what you want and and you know what
we'll close next week yeah you know yeah like I've had I've had
sellers call me back that I I dropped him a mailer um just like a postcard or whatever yep
and they called me back like literally over a year later yeah
but yeah I think I think the key is it's like uh one of my mentors said to me one
time that in your business the magic really starts happening when you're doing it
all yep like you you have to do it all at the same time so like
um just as as a for instance with flipping it's like we're always looking for
sellers we're always managing deals we're always raising money
so that that's one of the one of the key things that's allowed me to scale pretty quickly in a short period of in a short
period of time is that I raise Capital so like we have over two million dollars
in assets under management right now and none of that is our money
wow so by the way if anyone
um is has money that they're looking to put to work um please reach out I'll give my contact
info later in the later in the show most definitely so yeah so
yeah that that was like um that was a pretty transformational thing
for me too because like I was like I was really set like down the down the wholesaling path and partly because I
I thought to myself well I don't really have like that kind of cash laying around to just like buy a house renovate
it it's like do all of that just yeah um and who wants to go through that many
like mortgages and stuff like that oh yeah I know yeah that's that's not a not a very
scalable route like if you want to flip one or two houses that okay like that
can work for you but to like build a business around it not scalable
yeah but one time I was in like I was in a mastermind group basically if you're not familiar it's just like a group of
investors helping each other to better their businesses and
one guy said to me about house flipping he was like if you do it right house
flipping can be cheaper than wholesaling
interesting and his point with this was that
if you raise capital okay it takes less of your money because you
can't raise capital for marketing yeah so I just share that because like that
was transformational for me um so I really lean heavily into raising
Capital I'm always looking for money for future deals I'm always looking for
Etc so tell me this when you first got into
wholesale did you just go straight into full time what were you doing while you were trying this wholesaling thing
yeah so um I was working full time um so I didn't I did college campus
ministry um okay so I wasn't uh normally when I say Ministry everyone
asks me like were you a pastor no um I didn't do any of that I was uh I
was working on college campuses um doing things like uh just helping
college students to grow in their faith Bible study to you know
um different outings or or group Gatherings things like that so gotcha okay 100 yeah that's
it's crazy that you went from that to wholesaling which
there's an ethical way to do wholesaling yeah wholesaling in general has a bad rap
yeah you know and everybody thinks that we're trying to get you know get something over on the seller and and you
know we're we're trying to steal all their equity and and so on and so forth and it's not if I I truly
am out there as a wholesaler to help these homeowners if they want to sell if
they don't great I'll move on to the next person yeah and I tell this to everybody I'm not
here to convince anybody to sell yeah you know yeah okay cash deals like
everyone especially for the past two years every seller has thought they want
cash deals yep but in reality like in a in a normal Market in today's market
you're getting a cash deal it's at a significant discount correct
yeah and so like it's not for everyone like uh what I guess what wholesalers
are offering that's not that's not for everyone in fact I would say it's probably not even for most
people like right as a wholesaler you're just you're talking to a large volume of
people and trying to find those people with a particular need that you can meet
with a cash offer correct and so so it's like yep and this is part
of why like it it didn't even cross my mind that wholesaling would be unethical
um just because like it meets a need like if you've ever met
a person that like truly needs to sell their house yesterday
yeah it's like what is the right thing to do to not
make an offer and make them sit out for another 30 60 90 days Plus
in this market it's like you know if somebody really needs to sell
good luck getting it even under contract in under 30 days in most markets
right so you know and and that's the thing like I had I
had somebody reach out to me about wanting to buy their house in Detroit and you know she wanted
close to uh you know it's still a
discount from retail but but pretty close to it and I had to be honest with
her I said you're going to get the most amount of money by putting up on the market and seeing what you can get yeah
okay um this is the price where I would have to pay and I work with other investors and
that's the reason why and I was completely transparent with you know they pay me my fee and so on and so
forth and I you know she was happy that
I was open honest and transparent with her you know I I told her that she could
you know call me anytime if she has any questions but honestly you know this is
my recommendation but but you know with that you can take uh
you know we're talking about some two videos talking this I I had I told her I
was like it all depends on your end goal what you want to do you know so do you
want to go find a place in rent then maybe you know what you can get a little bit more money on seller finance and
just get some money coming in if not if you need the money to try to buy a new place then
on Market deals that you that's where you go you know so yeah
yeah it's it's definitely um it's a
it's a good um it's it's a good place to start it's a good place to learn the business I'm
really glad I started wholesaling and actually you what you were saying you
reminded me of of what I found to be a very useful technique for like working
with people looking to sell their house because somebody said to me just what you're saying right now of like just be
transparent with Sellers and so like I was like oh is it really that easy not
that I was hiding anything before no yeah you know it's just like you know sometimes you got to be careful just to
not talk too much yeah and and so somebody said that to me and I was like
oh is it really that easy and so the next time I was talking to a seller which was probably a few days later I
was like they're like yeah I want a cash offer I
I need to sell and stuff like that and I was like are you sure like I'm gonna just so you know I'm gonna get this
under contract for a much lower price I'm gonna sell it for a much higher price than
what you're willing to sell it to me um and I'm not really going to have to buy this you
know like I forget exactly what I said but I like I like laid it out there
yeah almost trying to convince them not to sell it and like yeah that's cool
they're like okay yeah because the thing is is they they want to speak they want speed and
convenience they wouldn't want to have to do anything they don't want to have to run you know you know go on the MLS
have an open house and then wait and see you know yeah
um they don't want any of that you know I was talking with a realtor the other
day an old realtor of mine before I got into real estate uh you know
and I told them I've been doing this for about two years he goes oh do you have your license
I go no I don't oh I and you haven't gotten sued yet
and I'm like no I have a business I have an LLC oh that doesn't that doesn't save
you and that doesn't and I'm like yeah yeah it kind of does but you know you
can keep thinking what you're thinking your typical agent that you know doesn't want to do anything and I'm like
you know yeah I'm like yes I know I'll eventually have to get my license because laws will eventually go that way
but at this time I don't need to yeah so uh yeah same with me I actually I
haven't gotten licensed either um not against it but it you know I
see plenty of opportunities like I I'll say for my for my part I see the value
of partnering with other people and if that can if that can bring
um the right person into my network that's like willing to work with me because hey I'm not a competing realtor
like I mean I know plenty of investors that are
realtors that still you know work with other agents and yeah and stuff like that but I think there's something
that's not super helpful like a mindset that we can get that I see with investors that are
licensed where it's like well why do I need anyone else like why would I need it and stuff like that and I just
think that's a very like naive perspective to be honest because it's like even the
most novice realtor comes across crazy deals like I
literally I just so here's one of the benefits that I've found of
um not getting my license so I have a realtor that I've built a really good relationship with
um we've bought a number of houses off the MLS um that we flipped
um and so I just got a call and he had a sub 2 deal for me
okay well yeah that was MLS listed so that's usually unheard of yeah yeah
and if if you're not familiar with sub 2 anyone watching it's just it's a technique of seller financing just to
keep it simple um so um and it it's a very I would say like
being able to structure a deal in that way is like pretty sought after by um anyone who knows what it is and so he
found he found through another realtor an MLs listed property the the person's
motivated to sell and they're looking to sell sub to okay they offered to me yeah so it's not
like it's not like you went in there and be like listen I can't come up to your price but if we can make terms and you
had to try to convince them and figure out what that is you know that's usually what we have to do yeah you know and so
just just think though like if I if I had went throughout that so many people
do where they're like oh well I'll just get my license and why do I need to work with any other Realtors you know
right if we went that route I would have never heard about that deal
exactly I love working with people whether you're new or whether you're
experienced I actually think with you being super experienced if you are not open
-minded it is a detriment to your business yeah okay
if you think oh you've only been in the business for a year and I don't you know I don't want to work with you that 100 a
detriment to your business you are losing business yep okay I have outside
the box you have to be intentionally marketing yourself and your business yep
and actually networking Pro tip that I I'll just share just as before everyone
um when I'm networking like when I'm at especially real estate networking events and stuff like that what you'll often
find in like decent sized groups you'll find like kind of the the people that everyone wants to talk to whether it's
the speaker the you know or whatever like glitter there all the time that
everyone knows you get those people and then you get the clear newbies yeah I avoid the people that are there
every time movies yeah you know my reason for that is
because those newbies at least some of them will eventually end up doing deals
some of them will maybe even eventually build sizable businesses and stuff like that and if I make first contact with
them and if I'm able to help them in some way yep guess who they're gonna bring a deal
that they need a partner on and you never know because they they
might be there because they have a dlsl already exactly so I had uh in another
interesting story this exact situation I was at a real estate Meetup I saw an older gentleman
who was clearly new like it was a definite first time there for sure okay
like you could spot him yeah um and so I
went up and I talked to him immediately and uh and as I started talking to him it
turns out he was there because he had some money that he wanted to put to work in real estate
you know and so I forget how much he said I think he
said he had like 250 000 cash that he was like that he was looking to put to
work and it's like you know especially if you structure it right it's like
that could be enough for for three flips you know you know if you if you work it
properly with like hard money or you know whatever else um
you know that that could secure three Deals and if all three of those you could make
you know 25 000 profit you know that's
that's pretty good like that that could have been a very valuable conversation
oh yeah because the thing is think of it this way you know you're gonna make a 25 Grand profit on there he's going to come
home with uh what 10 interest more than he's going to make in the stock market you know
and he's going to be happy and want to read give you more money you know so and
it it's just like uh you know Julie said they they called an agent tonight to see
if they wanted to do seller financing on their uh you know on their listing and
he said mind you I have no idea what I'm doing what I'm doing you know and that's the thing you you
just have to check it out now he just said that but they wanted to roll it
into a 1031 exchange so they didn't want to do that but if you don't ask you don't know
oh here's here's a pro negotiating tip I
love when I know people are in are doing 1031 exchange yeah um your options can be limited so
you can end up having to do cash or something yeah by the way Julie you can
feel free to reach out because I do have funds available and stuff but um
but one of one of my Pro tips is like when you come across somebody doing a 1031
or wanting to do a 1031 they're very motivated yeah because very likely
by the time they're either in a situation and they don't want you to
know this they don't want you to know how motivated they are but very often they've already identified a property
that they want to purchase yeah or and they're on a time limit yeah
I think it's like a 45-day time limit or something like that and so like
you know there's I'll just say there's more motivation than they will let on
with the 1031. so I found that to be
um I found that to be like pretty good where you can you can work
out some some good deals with 1031 sellers
so so I guess Julie knows you because she said okay great I have your card so oh yeah I was gonna say I thought I
thought I knew who that was so you know that and you know she said
that that's exactly what the agent said so I she was so nice but now there is
there is a way that you can do a seller finance with a 1031 exchange
now I'm not well versed in it I just know that there is a way you can
do that so uh so keep that in mind uh there are
just not a lot of people know about that so yeah um well and I'll just give you a for
instance of a recent deal that I was working on it was a portfolio deal and the seller
initially wanted to do a 1031. yeah and so I assumed like I you know I gave him
three offers one was Cash well really a bank offer and then the other two were
um creative yeah and so I figured oh for sure they're they're going to want to go after the cash offer so I made it like
pretty low like yeah like probably really tolerable though
and they actually were more interested in the creative and I think part of the reason for that
was because although people you know people that have a significant amount of
their net worth in real estate they've probably heard of 1031 exchanges
and they're like oh yeah that would be that would be awesome to do that but if they're not aware of creative financing
techniques right well you might not realize that okay well I can actually
lock in the price the price that I want right now yep and
get that money out at a later time obviously in that situation
um you know in in your typical seller financing situation that doesn't necessarily allow for a 1031. but it
does allow them to lock in the price they want
so you know it's like especially right now I would think people that
have significant portfolios if they're looking to sell like any time in the
next you know five or more years yeah
you know I would I would think that they're fairly motivated right now yeah
so I've actually came across this one I talked to this one uh
you know this one seller and they say I told them I said you know
you know usually I try to do a zero percent interest for creative and she
goes well why when you know banks are given they're six seven percent right now I said that's exactly why you're
concentrating more on the price right and I and I asked him that I'm like you
you want to hit that certain price right you just don't care about what you need it right now is that correct or is that
not correct you know and they're like yeah yeah I need to get this you know whatever price
I said okay this is what my cash offer would be and it's like 70 below that you
know and and I'm like but if we were to do
creative and go on terms then you know if we do it zero percent
interest I'm building in that interest with the extra price you know it's it's not a I'm going you
know I'm gonna pay that bigger price and then I'm gonna pay another five six seven percent interest on top why would
I do that I can just go get a bank loan for that you know so yeah and and that's the other thing
too is like and I I think people six months ago people didn't understand this
but I think probably a lot of people are starting to understand this that like as
interest rates rise prices go down yeah like what people have the ability
to afford drops as interest rates rise so typically you know Rising interest rates
prices are lower lower interest rates prices are high so it's you know it's in a way it's kind of like a double-edged
sword you know so Caleb actually asked this question
can you offer a creative option on homes that need Renovations or do they typically look more move-in ready
properties and you know yeah I'll let you answer that yeah you can absolutely
do creative financing on properties that need renovation
um for instance sub 2 um yep that's a that's a great form of seller financing
um basically the key excuse me the key with sub 2 is that
you get the deed so like you become the owner but their mortgage stays in place
right so in that situation it is your home
and you are making that mortgage payment and by the way that mortgage payment even at even at today's interest rates
like even if somebody got a mortgage in the last like three or six months and it's like five six percent that's still
going to crush hard money yes no so
you know even in those situations it can still it can still make sense it's all
about opportunity cost which is just the idea of like what are you giving up so it's
like how I look at seller financing is if I was to go out and get funding for this
property and that's whether it's hard money Bank financing um Capital that I've raised
Etc I'm looking at what's the cost of that money it's going to be anywhere from for me
six to 12 percent that's kind of that's like my range
um and so you know if I'm entering into especially a short-term deal that I'm
gonna flip and if I'm able to get it sub too you know that can work out great
similarly if you get and this is what most I would say
this is probably the most common like exit strategy if you get us if you get a
seller finance deal is you're often not getting creative financing to flip the
house and just sell it and exit right away um oftentimes you're getting creative
financing and you want to stay in that deal as long as possible yeah and the reason being because then
you get um you get good terms locked in and you want to let inflation take care of the
rest and you just you make more money from the appreciation hopefully increasing
rents tax benefits Etc um and and that's where you've got to
make sure you cash flow and this is where a lot of people with the creative deals it's funny because I come across
some creative deals where they're like okay 20 down six percent interest rate
and you know and you're paying this higher price why would I do that
yeah I I won't do there's no point in in
doing anything for 20 when I can go get a bank loan from right around the same
amount you know yeah but the thing is is that you have to look over again your
opportunity cost exactly what you said uh you have to look over the opportunity cards and you know when you're doing a
burr when you're doing a uh or just renting it out say it's a rent ready
property I had a so I almost did a deal where you know it
was a rent ready basically rent ready did just a few things need to be tidied up you know maybe a backsplash replaced
or whatever and that's about it you know and it was a creative deal and I had to
come across I looked at it and we're going to make it was like gonna be like
uh two to three hundred dollars in cash flow yeah well I made the mistake of not
uncapping the taxes and even though it would have been a
land contract the Caps the taxes was still the uncapped so I had to now
calculating the new taxes and I didn't calculate in vacancy
so now I have to do that it went from you know two to three hundred dollars a
month in cash flow to a a negative almost 100 a month
yep you know after you figured everything out and so I had to go back to him and say
unfortunately it's not gonna work he was dead set on
he wanted the interest rate as well as the price and I'm like yeah
yeah it's like when you're talking creative financing
you have price interest rate term um and
don't forget down payment yeah and like what I tell sellers that I'm dealing with I'm like
you can pick one and I'll get the other three
yeah like I and typically you know like you said in these situations it's
typically somebody that's dead set on price Well yeah if somebody's trying to trying to get
you know an extra an extra one of the terms in their favor
like it it really can't be 50 50. otherwise it like it just makes no sense you are setting yourself up to lose
money yeah almost guaranteed you have to get the other three if you're giving them
one of the terms and if they if they're like oh well I want to get
you know an awesome interest rate okay well then your price goes down yeah
I'm like I'm cool with that yep so yeah
100 percent so now with so you went from Ministry to
whole trying to do wholesaling when did you go from wholesaling
into Fix and Flip now you you said you came across where
um was he your Mentor or was he just a uh uh uh he was a friend a friend of
yours okay yeah he told us about private money yeah yep he uh he was a part of a
mastermind that that I was a part of gotcha okay that I was connected to because of my
mentor um gotcha but yeah I always make a
point of mentioning that comment just because it totally changed the direction that I was headed
because I was like I love the idea of wholesaling but like
just to be frank and I don't say this lightly because I yep had and do have
so many headaches with flipping but flipping way easier
like you know you know why I'm gonna tell you why because you know what you're getting yourself into you can
pick and choose your deals and yeah you know what you're gonna be able to come
across you you have that deal for two three months however long you're working
on that you know and you know roughly what you're going to be
getting at the end now obviously things can change and you know Marcus fluctuate
and stuff like that but as long as you bake that in you know like okay this is
as long as we stick to our budget and we'll make a a roundabout profit you
know and I understand where you're coming from on
that because yeah like I as me wholesaling as well like I kind of wish
I was flipping right now to be honest I just don't have the funds to be able to flip and
you know um so that that's kind of the key key thing
um so I'm happy uh that you know you're saying that that it's easier because I
do want to get into a flip I do that's actually one of my goals is I do want to
do I want to do a creative deal this year and I want to do a
um I want to do a flip this year so now whether that will happen or not I don't know
but I put it out there in the universe to to see if I can yeah
so uh yeah now so you came across that you
know your friend told you about the the flips being easier so how did you first
start getting into flipping and and did you start off with your own money at first
uh no I didn't I've actually never used my own money for flipping Okay jealous I
I want to get with you how to do that okay we can talk
um but uh but yeah it that kind of like opened my mind up to the concept and
because of that like up to that point I had always felt like flipping or other
things I felt like they were kind of off limits yep because I didn't have the
straight up cash to just drop on a property you know
um and so anyway I share that because I wanna I wanna see people more people
starting with their first deal as a flip you know because it's so doable
um but yeah I so it was kind of a
real quick before everybody starts doing that I just want to emphasize this one
thing I know you want them to go start off with a flip but I recommend for people
to start wholesaling before they flip and there's a there's one reason why
you get to know if you do it right and you start talking with your buyers
and you start learning from your buyers you get to know the the rehab costs a
lot better and that's where most people you get to know the areas yes that's the
key like at least for me that was like once I once I found
like it took me a long time to find but once I found where other people were
flipping yep then I was in business then I yeah then
so you are looking at higher quality deals where there's enough meat on the boat to make some money and stuff like
that so 100 and that's where if you're a
wholesaler just going through the motions I'm going to tell you you are doing yourself a disservice you need to
talk to your buyers you need to see what their renovation costs are now everyone's renovation costs are
different because you may hire you know that's a crew to be able to do
all your stuff another person says or hire a crew with a general contractor
another person says okay I just sub everything out so now they can take the general contractor Price Right Out okay
and then another person will do it themselves
it'll take longer but it's cheaper yeah so the more you know exactly what
things cost and what way you're going to go okay I think the better you become as a
flipper as a wholesaler uh yeah just all around me in real estate and
something I'll say too is like wherever you start those two paths they they really look especially at the beginning
they look pretty much the same yes because no matter what it all starts
with marketing yep because you gotta find a deal and by marketing it doesn't have to be mailers
but I do think like that's a really good thing for people to get their feet wet with and and start learning that wheel
that world um yeah as far as getting into other
paid channels you don't have to start there you can find deals for free like on Facebook I found yep I found wheels
on Facebook um 100 but yeah it it really should look pretty
much the same because you start off marketing you get something under contract and
you know just at least from my experience what really happens is you
get several things under contract to come get them closed but you learn from
each of them yeah that was my journey like I okay maybe everyone's as slow of
a learner as I am but um yeah it took me a lot of like get
them under contract you know pretty soon through this whole process especially
wholesaling but once I got more into flipping now I can get my whole due diligence done in like less than 24
hours from getting a contract I can get my inspector contractors if I need
subcontractors like if I need to get a quote from Pinnacle electrical whatever yep I if I need to you know there's
something weird in there and I I need to get a specialist in there okay well then I get them in and I can I can have that
all happen within 24 hours and and that's great you know and it's
because you know also you know your costs of things as well you know uh yeah
that helps too is like I get better at estimating and stuff like that but exactly so that's the thing like as a
wholesaler myself and I come to you with a deal and you know I talk with you like hey
you got this but okay it's in your general area as far as price wise
you know we talk and you're like hey I need to be this doesn't work for me at
your price but I need to be here you know okay great that is awesome feedback okay
if I'm not getting any offers at the price that I want then what I'm gonna do is I'm gonna go
I'm gonna come to you before I go back to the uh the homeowner or the seller
and I'll be like hey if we if I get this down to this price
can we get a deal done you know yeah I'm not going to get a
that's one thing I don't like about I don't go to a homeowner or a seller and
say I need a price reduction without having a offer back backup
what I mean by that is I don't want to go to them with a price reduction and then have to go back two
weeks later with another pricing yeah absolutely you know I say okay if we do this price reduction we're going to
close in two weeks or we're going to close in a week you know yeah and I think
um also this is for anyone out there that's either wholesaling or looking to
wholesale right now we're in a very interesting Market it's I I would say most of the
places where I'm at um the Market's stable but any flipper
that knows what they're doing they're discounting their projected prices like right now
um in fact you should have been like a few months ago for sure and so whatever
when you're running numbers and whether you're a wholesaler or a flipper or
anything else you need to be discounting them whatever whatever the Market's saying
it's worth right now you need to discount from there like probably 10 to 15 percent
numbers off of that yeah my cops I only go back three months
yeah that's it I cannot go back further okay three months only if I have
to go back further in order to find cops then I discount and give them more but
what I try to do is my arv with those I try to discount at 10 to 15 percent
yep absolutely yeah and I'll just say too because I know we've talked
before and stuff and I know you do that but I see deals from other Realtors and
I'm like I'll I see them all the time where I get them in my inbox and and they're clearly pricing it like at six
months ago or more yep and I'm I just I don't even look at theirs anymore because I'm like I see a lot of that I
see a lot of wholesalers too new wholesalers other wholesalers yeah and
you know I've come across where this is another reason why I've done this show
as well is to help educate as many people out there as possible so yeah
with our group with our Facebook group you know we have about 2400 people now in the Facebook group
um and that I'm just now building up my YouTube channel so that helps
by you know I specialize and by the way anybody wants to JV with me or just
get on a phone call with me and get my opinion on a deal that they have I'm
happy to do that give me a call send me an email my emails down below um scrolling and you know I'm happy to
get my opinion but I'm going to be honest I'm going to tell you whether I can sell you know it's very it's a lot harder to
sell something inside Detroit than this Metro Detroit you know and I have to have an even
bigger discount inside the inside the city of Detroit you know so not only in outside of
Detroit you're also discounting but you know there's not you know there are
there's more buyers out there you know out in metro Detroit right now at this
moment there's not a lot of buyers inside Detroit because they're trying to be risk
adverse yeah yeah which is interesting I
I guess I don't specialize in Detroit but I guess I don't I don't see that coming down as much in prices many other
areas but yeah so but I guess time will tell exactly
and Andre Kingston says I'm a realtor and I'm listening I'm hearing what
you're saying so that's good keep it that way you know I always see the the
comparative analysis that Realtors want to hit and what they do is they say oh let's try to hit that 10 above that and
see if we can get that and unfortunately yeah oh my gosh if you're if you're flipping
houses or if you're a realtor and you're doing this if you have agents that are advising like you know here's what this
is worth we're gonna list it for five ten percent more or whatever yeah
this is not the market to do that no like you a year yes if you don't price
them right now your deals will get crushed and no one will even take a look
at them because the thing is is that like if I have I'll tell you right now if I had
funds available to me to either do flips or do buying homes okay
like I could hit these on Market listings and like cut up cut the prices in half
okay and I can guarantee you that you know if it's been on the on the market
for more than 60 days one of them is going to take it yep
yeah yeah yeah colors that are on the market for 90 days and you know
even like 30 days like people aren't people don't know what to do like you
know they're not used to it sellers have had Amnesia like they don't they don't
remember pre-covered days I know so like and which I guess it works for
us as investors on the buy side um but you gotta plan for it too like
for me as a flipper I've got to adjust what I'm planning for my holding costs and stuff like that because you're
holding it longer so you gotta you gotta Bank on like what I'm focused on right
now is I'm focused on okay how do I how do I really compress the timeline of my
flips like my goal and we're not there yet but my goal is that all of our flips
are listed within 30 days wow and so
that's what I mean even though we're minimizing big jobs unless there's
real big profit like see I see and that's where buyers are at right now is
they want carpet paint refresh and then list it and I'd get that if you want my
buying criteria or if if anyone else wants a great buying criteria
I'm looking for properties that are median price point like 150 to 250
obviously some markets are higher than that generally below median in whatever
whatever Market it is whatever that looks like um but not too far below like we want
entry-level houses is kind of the bread and butter of what we're looking for
arv to be at that price right yeah arv to be 150 to 250. generally I do still
consider deals up above that but I like I wouldn't I would be very hesitant like it would
have to be an amazing deal for me to do something that has arv over 400
yeah like like for instance to break that 250 like you can go and Royal Oak you'll still get an entry-level house
the other 300 you know yeah so exactly 100 yeah so it's a it's all relative to
the market so you got to do your research but yeah generally right around median whatever entry level buyers are
buying in a given Market so um and then I'm also looking for smaller
houses because the advantage of smaller houses square footage wise is that
as as the square footage grows of projects you're doing your budget grows
exponentially Gadget so if you can stay like under 1200 square feet or so
that's like that's kind of prime time at least for me um
I'm not sure if others if other house flippers are are monitoring square
footage like that but generally entry level it tends to fall in that square footage anyways
[Music] um I would say a Max is 1800 but I would
say 1500 and under yes is entry level you know as far as like the size of the
job I'm generally not interested in
projects where the repairs are going to be over like 60. okay
now awesome I say that because I have three currently going where the rehab
budgets are well over 60. okay I I've done a couple of hundred thousand dollar
plus rehabs gotcha um and I'll just say this ain't the
market to be doing those right not you if you're if you're gonna flip and I've
I've discouraged many people that I've spoken to from flipping right now because this this isn't the market where
you get into it and you think well I'm gonna get like a
traditional mortgage I'm gonna live in this house for the next two years and renovate it over that time and then sell
it right just my opinion I think people that are doing that are probably going
to get crushed in the coming market so I wouldn't I wouldn't go that route now that's not to say you can't flip in this
market right you have to be doing things to do it very quickly like I said yes
for me what I'm looking at 60 days the Jabs that I'm looking at is like
worst case scenario three months okay like out in 90 or listed in 90 days
yeah um so you you just have to manage timelines right now and the reason I say timelines
is because um yes it like as markets start cooling off
dropping I'm not saying it's gonna be like dramatically dropping I don't know
but right as prices drop in days on Market climb and stuff
the longer you hold it the more hopefully profit is lost like hopefully
only profit I'm saying hopefully it doesn't go negative yeah but the longer you hold it the faster that shrinks right
so um hold time is very important holding a house unless you're planning
to rent it long term that's a different ball game that's that's also still a good strategy just gotta know your
numbers but and and you gotta have multiple you gotta have multiple exit for a property
too and you gotta see okay if I don't sell it within x amount of time I'm
going to rent it out or I'm gonna put it here I'm gonna make an Airbnb or I'm gonna do whatever the thing may be you
know I had one buyer that he had a property in Madison Heights and that's what he told me he said you know we did
we had a a it was a great property and he's like if we're gonna if this doesn't
sell within like 60 days then I'll take it off the market and now I'll do an Airbnb
well he got a 10K over asking price the first weekend so he did a really good
job on it so um so he didn't have to do that but that was his backup plan you have to in this
market you have to have a backup plan absolutely so I always not I don't enter a deal
unless I have three exit strategies yeah so Audrey Kingston the the realtor
actually was asking do you do auctions uh no but I am looking to
okay that's a whole different strategy I I'm like I'm literally like reading a
book now to like learn more about auctions and and get things ramped up for that because I I definitely want to
be doing auctions um yeah so the good the thing I so auctions would be great but you're gonna
have a lot you're gonna have more holding costs with auctions because there's a nine was it I think it's a
three month or six month holding period where they can get the rights to
actually buy the property back yeah yeah they're well in the right of
redemption and stuff like that right of reduction yeah there's um I mean there's definitely risks with
auctions like I wouldn't start there unless you have like cash to burn because the other thing with auctions
and part of why this is why it's part of why you can get good deals there is because you have to have
the ability to provide them with a cashier's check same day
for the amount that you're purchasing the property for so if you're buying
maybe it's a hundred thousand dollar property like you have to like it can't
be a situation like where what you do with the typical closing where I'm like you know have
um our private investors uh wire funds or whatever like you can't do that or
you you miss those deals like you have to you have to like have the cash like
drive to the bank get it and you're there so now the good thing is if they
do a Redemption they still have to pay you a nominal interest rate and give you
all your money back yeah okay so I think it's like a
nine or eight percent interest rate or something like that um so but I would not start on any work
until that's over with or you figured out that you know whatever way they sign
over the rights yeah I mean like I've known people that have done stuff like
where they bought something at auction and they actually sold it same day like
you can you can sell them right away but yes there are there are risks for
whoever is buying foreclosures and at auctions yeah so I guess uh they're
saying uh what we're talking about is a share sale which is it that's exactly what we're talking about the tax auction
yeah okay so um there are other auctions uh online
that that have other rules so I guess there are like you know people will put
their house up on other auction sites you know things like that so yeah
yeah that's a normal sale yeah I that's what I would say
um I've seen some stuff I haven't looked heavily into buying like on other auction sites like that I'm mostly
looking at you know deals that other people
um you know maybe they they don't have the cash for or the risk Talent or or
whatever and some of these barrier Century are
good because it's like once you kind of crack that Arena like in Just In This
Place um auctions once you like break into that and you
you figure out how to do that those barriers to entry are what minimize competition
which means there's more money to be made so
I don't know if it yeah that's what they said that's what they said the harder it
is to find the harder a deal is to find okay the more money you're going to make
okay for instance all the the people that you
cold call all the people that you get back or say you do mailers I I'll use
the mailers as an example you send out these mailers all the ones that you get back
that say um you know not living there no address found or whatever the case may be and
their returns that is gold you take that stack and you
skip Trace those people to find and cold call them
the harder it is to find somebody yeah the better off the deal will be
absolutely yep so um 100 he uh they also said check out
auctions.com and uh it is a combination of options so
yeah that's good um now uh with that being said uh you know
we're coming close but what is it so right now you're doing
flips where the arv is between 150 and 250 okay okay I'll clarify that I I
currently have flips above that but I'm looking to get rid of that inventory and move into
lower price so okay but yeah and what air what areas are you looking for
um so right now we're in um Oakland Genesee Livingston
Wayne uh and I think I think that's all the
counties were in at the moment but also looking at MaComb and Washtenaw
counties so we have a we have a pretty big footprint um
I don't know if we'll continue that footprint but I like all of those areas just no proper Detroit right
uh I'm not even opposed to it I just don't know it so I'm not
I don't I don't know Detroit very well at all so like if I was to go in there I'd have to like have a partner or some
sort of guidance of like somebody that really knows it and I know a couple people that do so it wouldn't be out of
the question but I I just don't know what I'm looking at generally so
I'm I'm not against Detroit I haven't done anything there yet so if you ever
need help analyzing a deal or anything like that inside Detroit by all means let me know I'll be happy to help you so
yeah for sure um you know obviously I don't do flips or anything but I've wholesaled many
many deals in Detroit yeah yeah okay all right so with that so now
going into the future that's what you're that that's your goal anybody here that is you know watching
whether they're watching right now or whether they're watching the future you know how can they help you and how
can they get in touch with you in order to um to help you on your journey moving
forward yeah so um what I'm I guess the main thing I'm
looking for that I I've already mentioned is I'm always looking for money
like I just always because um when the buying opportunities come
the people that get them will be the ones that can fund them and it will not be yeah yes it has been so
if you have money to lend or if you have a deal that you're like man
nobody can seem to get the financing for this I'm your guy to talk to so
um gotcha right I'll I'll give you my uh my cell phone it's 989-447-3176
okay and actually I'll put that in the chat as well yeah
so and you should also find me on like on Facebook Instagram
um I have Tik Tok as well so I have some good content all over social media so
you said 989 will repeat that 989-447-3176
-3176 yep all right so yeah I'd I'd be happy to talk
probably that or social media would be the best way to get a hold of me
and then so I just put it in the chat for Facebook okay okay great so I'll put
it in there for uh YouTube as well seven three
oh I almost forgot I have a deal I have a deal
so I know I've talked all about flipping mostly um before we before we go into this okay
talk about your worst deal so oh yeah yeah let's talk about that first okay we're
going to the deal you have now all right yeah that one's a little bit of a long story uh just to give you an idea of how
brutal this was it was like a 14 month deal oh wow yeah it was it was that rough and so anyway uh I'll keep it somewhat brief because I know we've been going a
while but essentially what we were doing with this house we were putting a major Edition on it
and when I say major I mean major major we uh
it was originally uh 600 square foot two bed one bath house
and we were converting it to a 1200 square foot three bed two bath okay now
that sounds like a lot until I tell you that we also doubled
the square footage of the basement oh wow so just imagine that like you don't even
have to know anything about construction how stupid that was yeah
normally when you do audition you don't add to the basement yeah
yeah it was it was pretty crazy but I learned a lot learned a lot about Construction
um but yeah it was uh yeah along the way yeah
yeah there was there was a lot of learning lessons I'll just say that
gotcha but um but yeah the I part of what made this the worst the
worst deal for me wasn't so much the extent of the work it was the extent of the work combined
with having the wrong contractors got it
um it was on that deal that I fired my first contractor [Music]
um which hopefully you lose too much money from him
oh yeah it I mean if we want to talk numbers on this he yeah I I made a
profit on it miraculous like miraculous
okay I made a profit on this but he for sure
and I didn't even I didn't even total it all up because I knew it would have gotten me very upset thinking about it
but he for sure cost me at least 30 grand of profit
oh wow for sure and of that 14 months he was probably
only on the job three three to four something like that
so but he screwed up so much from the beginning that it's like
there is just significant issues mind you we were
putting yeah we were putting a major addition on when lumber prices were at their all-time high oh my God you know
it was it was brutal it was brutal we had we
had one um one week um I call it my ten thousand dollar week
um it was ten thousand dollars in surprises okay not budgeted for
oh uh yeah it that was a rough time
um but that was it was it was a lot of learning lessons I learned a lot about how to negotiate
with contractors I learned about a lot about rehab costs um
and and just generally like managing the deals and like I had no idea
what I was doing when I started I was just like I mean it was kind of like what I said about marketing and starting
the whole school and stuff it was just like okay just do it and I I'll figure
it out and so I this was probably next level
because like this this was a major major project yep so
um yeah we uh so we had that deal for for 14 months all together
three three of the three of those months were delays because of rain
Summers on record and it delayed us I counted
I had delayed us by three months literally that's crazy
so where was it where was this deal at um this is an address just rough area
yeah yeah this was Genesee County it was in Burton um
which is just uh just east of Flint so I actually am just talking to you
with a another wholesaler about a deal and Burton right now okay
so [Music] um yeah definitely if you if you're able to
get it under contract and stuff we should definitely talk yeah um
yeah I believe we'll be able to get it under contract by tomorrow hopefully so
okay um but the original price they wanted I I told him he needs to come back and get
it lower so so we'll see yeah so awesome
that's great um so with that so with that being said you have a
um you know so that was your worst deal and you know you miraculously you said you
made a profit on that yeah 12 Grand profit 30 grand yeah you mailed
it 12 Grand I didn't know that I just I threw them
around there yeah okay for 14 months of work it was
it was the hardest 12 Grand I've ever made
but obviously that wasn't your only job so they you didn't make 12 grand for the
whole year yeah yeah yes but I yeah so I will say when I
When I close that deal I quit my job though okay so I had other deals going by
that point and stuff like that 14 months is you know a long haul a lot changes
100 in a year yeah so but there there was a lot of um a lot of good learning lessons with
that and you know I guess if there's one piece of advice that I have from that
deal there's many like we could do a whole nother episode just on this deal for
sure um but if there was like one one piece
of advice that I think would be useful for everyone is get out of your comfort zone like I I've
heard it said like um no uh what is it
about like how there's no growth happening in your comfort zone
How does it go I'm drawing a blank on it yeah so I know what there's one saying
but I don't think it's this oh yeah yeah there's no growth in your comfort zone and there's definitely no comfort in
your growth Zone oh wow and so
anyway I heard it a long time ago but I that really stuck with me and I will
say of those 14 months I was not comfortable one single day
so what there is an advantage to that like I I learned so much like hopefully
that that gives you an idea though like thinking about that quote and the idea that for 14 straight months and honestly
well after that I'm still not comfortable any any day when I'm when I'm doing stuff like I'm still learning
and still pushing myself beyond what I think I can and
and so it's like but you can tell there's there's so much growth happening because of that so if you if you want to
grow and if you want to make well not just money but it'd be wealthy
get comfortable with being uncomfortable yeah period absolutely
if you're if you are comfortable and just comfortable you are not you have to
get comfortable with being uncomfortable okay which means you know whether I'm
getting on the phone all the time once I get comfortable being on the phone now I gotta switch it up and and do something
else and hire somebody else to take care of that the the comfortable job that I just had yeah and process into something
else that's uncomfortable for me so and or start doing flipping which is
more stressful for me because yeah you
know but um so with that being said uh that was
awesome with your your it was an awesome new worst deal but
thank you for sharing your worst deal yeah and you said you have a deal right now yeah I'm glad you reminded me so um
the property address is 854 Major Street okay
that's in Flint um 854 Major Street arv we're looking at
about 55 000 um repairs right around 20 000. asking
fifteen thousand um and I'm wholesaling this so okay talk
to me about that here's where it gets really interesting though so you're asking you're hold on you're asking 15.
15 yeah 15K okay and where this gets really interesting is the median rents
are a thousand dollars a month yeah oh wow okay is that as a three
bedroom uh yes yeah that it's three bed too bad
oh too bad okay nice yep breaker Frank
um it's frame okay does that matter too much in Flint
I know it does in Detroit no Matt especially if you're renting like it okay it really doesn't matter it's I'll
say Flint is a great cash flow Market in fact I've seen many many places like
nationally where they list Flint as like the number one cash flow Market in the country yeah
just because it's like where can you get a thousand dollars a month with less
than fifty thousand dollars into a deal yeah the same way that's the same way Detroit
is too so Detroit the same exact question yeah exactly yeah yeah the great Detroit Detroit Pontiac Flynn
similar you gotta you gotta know where you're going um I would say this is a decent area
um really solid cash flow good neighbors that sort of thing
and yeah it's I mean it's like just consider all in if you have 35 000 into
it where can you get a thousand dollars a month cash flow for thirty five thousand
wow and then yeah and you have a little bit of equity too yep is it vacant or is
it rented uh it's vacant right now okay it doesn't need a lot of work
the main thing is the roof um it it definitely needs a new roof
there's a leak in it excuse me it hasn't hasn't been a ton of
damage like I said only about 20 000 in repairs which is
I'll say that's a smaller rehab than I've ever done yeah so it the rest of
the house is in pretty good shape so I would say I would say it's the roof some drywall repair and yeah it's more or
less ready to run awesome well if you want if you have pictures I
don't know if you do or not so um but if you do go ahead and post in the group and see if you get any replied
or if you want um you know if you want me to post it
out to my email email list and you go on JV with me I'm happy to do that just send me all the information and email so
like all the photos and everything so um everyone kind of go from there so
um and that goes for anybody out there that is looking to JD on any deals I'll
be happy to look at them um you know if if I feel that you know
they're good for my buyers list I'll I'll put on email blast and uh you know
put them out to my buyers and and see where we can go from there so that goes for anybody out there my number is right
here this 586-307-4765 you can call text and my
email has been floating down at the bottom Randy buys houses Mi gmail.com
so um you know hit me up call me text me if
you are new to wholesaling if you are new uh to real estate in general
um and you want to hop on a call we're happy to do that I can either hop on a call hop on a video call with you and we
can record the video call um and you know we can talk about hopes
at admirers and all of that stuff and I'm just giving my open and honest
opinion like I do here and like I do every every Monday at 8pm so all right uh with that is there anything
else you want to leave everybody with uh now just get outside your comfort
zone that's the biggest thing and I I hope that's take away and you take that to hurt and and start taking action
that's awesome appreciate get comfortable with being uncomfortable yep
and then let's all do some deals together and go from there so I want to
say thank you to Michael hasso uh for coming on here for telling us this journey and if you do want to reach him
we did put his number in the side chat as well but just in case you you don't
have it um from then and you stay till the end
989-447-3176 you can also reach them on Facebook uh on our Michael hasso
um and he's very prominent in most of the groups and actually that's where I
met you was actually one of the meetup groups so I think I first met you at the
Met the mcv's pub with the the meet up there oh yeah
yeah it was um I had a meet up in Troy I think yeah yeah
so it was either mcvey's Pub or it was the mrei
um the one that's actually this Thursday so yeah yeah yeah okay
yeah so it was that one then yeah it's you know if you want to go to any of
these meetups re uh go out see where they're at and honestly just go out and
start meeting people introduce yourself so yeah networked like crazy 100 thank you for everybody who's joined
I appreciate it see you next Monday don't know who's going to be on here yet but we will figure it out and we will be
here whether I have somebody or not have a great day Mikey if you want to stick around for a minute so yep we'll do.