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Rank #186 in Investing category

Business
Education
Investing

Flipping Junkie Podcast with Danny Johnson

Updated 3 days ago

Rank #186 in Investing category

Business
Education
Investing
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Flipping Junkie is a podcast for people addicted to flipping houses and real estate investing. Danny and Melissa Johnson started flipping houses over 15 years ago and have chronicled their journey to help house flippers both new and experienced. Subscribe for weekly episodes featuring interviews with people just getting started as well as big name investors like Brandon Turner of Bigger Pockets and Justin Williams from House Flipping HQ. The podcast covers a range of topics like what is working today to find great deals for flipping, how to properly analyze deals for flipping, renting and owner financing, determining repair costs, finding contractors and managing rehab crews, what improvements to make and how to quickly sell your houses for big profits and so much more. Don’t worry, we won’t leave out the serious mistakes that you need to avoid when get starting and growing your real estate investing business. Join Danny Johnson to get the inside scoop on how to get started and how to stay successful to create true financial freedom for yourself and your family.

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Flipping Junkie is a podcast for people addicted to flipping houses and real estate investing. Danny and Melissa Johnson started flipping houses over 15 years ago and have chronicled their journey to help house flippers both new and experienced. Subscribe for weekly episodes featuring interviews with people just getting started as well as big name investors like Brandon Turner of Bigger Pockets and Justin Williams from House Flipping HQ. The podcast covers a range of topics like what is working today to find great deals for flipping, how to properly analyze deals for flipping, renting and owner financing, determining repair costs, finding contractors and managing rehab crews, what improvements to make and how to quickly sell your houses for big profits and so much more. Don’t worry, we won’t leave out the serious mistakes that you need to avoid when get starting and growing your real estate investing business. Join Danny Johnson to get the inside scoop on how to get started and how to stay successful to create true financial freedom for yourself and your family.

iTunes Ratings

408 Ratings
Average Ratings
388
11
4
1
4

Thoughtful and planned

By vsarawat - Oct 05 2019
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Danny is an excellent interviewer. I love the variety and thoroughness.

Awesome content

By TonyL02 - Mar 10 2019
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Great podcast for house flipping. Got to be one of the best. Tony Ludwig

iTunes Ratings

408 Ratings
Average Ratings
388
11
4
1
4

Thoughtful and planned

By vsarawat - Oct 05 2019
Read more
Danny is an excellent interviewer. I love the variety and thoroughness.

Awesome content

By TonyL02 - Mar 10 2019
Read more
Great podcast for house flipping. Got to be one of the best. Tony Ludwig
Cover image of Flipping Junkie Podcast with Danny Johnson

Flipping Junkie Podcast with Danny Johnson

Updated 3 days ago

Read more

Flipping Junkie is a podcast for people addicted to flipping houses and real estate investing. Danny and Melissa Johnson started flipping houses over 15 years ago and have chronicled their journey to help house flippers both new and experienced. Subscribe for weekly episodes featuring interviews with people just getting started as well as big name investors like Brandon Turner of Bigger Pockets and Justin Williams from House Flipping HQ. The podcast covers a range of topics like what is working today to find great deals for flipping, how to properly analyze deals for flipping, renting and owner financing, determining repair costs, finding contractors and managing rehab crews, what improvements to make and how to quickly sell your houses for big profits and so much more. Don’t worry, we won’t leave out the serious mistakes that you need to avoid when get starting and growing your real estate investing business. Join Danny Johnson to get the inside scoop on how to get started and how to stay successful to create true financial freedom for yourself and your family.

Rank #1: 91: [Finding Deals] Landing Your First Flip Deals with Mike Newby

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Mike is brand new in the investing world but brings a construction engineering degree, and 10+ years of construction background, knowledge and business sense. Alongside him is his beautiful wife, Sarah, and loving father, Jim, who have helped get their real estate investing company, Newbyginnings, off the ground and now full steam ahead. They have big dreams for the company and hope to help thousands of families create their new beginning. Mike is also currently a full time construction consultant and his wife is a full time cardiac ICU nurse at a local Children's hospital.

When Mike started studying real estate investing, it only took him about 6 - 8 months for him to make the decision to jump into the industry. Mike found a wholesaler and got his first deal done. With a good foundation and knowledge base, he was confident in working his first deal for his real estate investing business. Where so many people give up before they hit this point, Mike kept going and is working everyday at making his business a success.

As soon as he decided to get into real estate investing, Mike found a wholesaler posting houses on Instagram. He sent a message, got into communication with someone on this wholesaler’s team, and started communication. This group has a wide range of buyers, so they were eager to talk to Mike. They walked through a few houses, and on the third property Mike made a bid and got it. It took 2 or 3 weeks staying in communication with this wholesaler before the property was Mike’s. What a great first deal!

For more connections, Mike has been networking in the Flip Pilot group on FaceBook. Finding other wholesalers is the key to starting up a successful real estate investing business. With both Mike and his wife still working full time jobs, and being full time parents, wholesaling felt like an easy way into real estate investing. As long as the numbers make sense, there’s no reason not to jump into it.

There’s a perception that wholesale deals don’t have much meat on their bones, but that’s just not true. Mike’s rule is 70% is the golden number. In his market, that’s tough to get, but you can expect to be around 80% - 85% ARV minus repairs. BiggerPockets has an ARV calculator, but Mike made his own in a spreadsheet to keep track of his numbers. With his spreadsheet, he determines if the numbers work for his marketing and business. This is the spreadsheet Mike uses, so if you decide to use this method, be aware that your numbers need to reflect your market.

For Mike’s first deal, Mike went through 2 wholesalers. Despite them both taking their cuts, there was still meat left on the deal. The property was a little rough, though. The property was supposed to be vacant, but it wasn’t. The sellers were there for 3 or 4 days after Mike closed on the house, which they weren’t supposed to be. Mike was still working on the plan for the property, but everything went well in the end. When the sellers eventually left, they left behind much more stuff than Mike was expecting.

Despite the unforeseen difficulties with this first property, Mike’s ultimate concern in with helping people like the sellers of this property. That’s where the name of his business, Newbyginnings comes from (in addition to it being a play on his last name). “You never know where your next deal is going to come from,” Mike said.

The sister of the seller had been waiting for someone like Mike to buy her sister’s house. After seeing the amazing success with her sister’s property, she mentioned that she’s going to be selling her house next year and wants to go through Mike. She even offered to make a testimonial, and took a picture with Mike, and wrote an awesome review for him. Her property will, hopefully, be Mike’s 5th deal for his business.

When it comes to actually rehabbing your property, communication is always key. Mike’s GC had brought in someone from other projects to help with the rehab, but staying in communication was a bit of an issue. Mike would talk with his GC, and thought that word was getting passed down to the other contractors, but with the mix up it didn’t. The plan in the future is to sit down over dinner with their GC and other contractors to get to know each other better, and keep the communication channels open. Making sure you know who’s responsible for what is important for keeping a real estate investing business organized.

Sep 05 2017

56mins

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Rank #2: 114: [FUNDING] Buying With 0% Financing with Matt Recore

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Matt Recore first started working in the tech industry but realized it wasn’t his calling. He then began inviting in the pre-foreclosure world, focusing on houses that were on the way to auction. Matt would negotiate deals with sellers just before they would bring their houses to foreclosure auctions. “It’s not a great way to get into buying houses because of how stressful and emotional it is for the seller,” Matt says, “but you have to really put a lot of trust and look out for people in those situations. It was challenging, but that’s how I learned.”

The market began really heating up in California in the early 2000’s. This made Matt nervous. He sold all of his rentals and stopped flipping to try and avoid the crash that he felt was coming up. Matt got back into tech and had gotten out of the real estate industry just before the deep decline in California. “The peak season for us was in 2005,” Matt says, “But I got back into real estate in 2012.”

Once Matt got back into full time investing when the market began to get back to a safe place, Matt started building a strategy that was safer for the future. He wrote a book titled “How to Purchase Real Estate at 0% Interest” (the link is in the link section below). This book was written before the housing market crash with a strategy that’s been working for him. Let’s talk about what the strategy is!

There are benefits on both ends. Buying at 0% interest means that every bit being paid is going toward the principal which means you’re building your net worth a lot faster than a normal 30-year mortgage loan. A 15-year loan is much better because you begin to see the principal paid out sooner. Basically, your net worth is going to be much better when you buy this way.

The benefits to the seller are avoiding capital gains taxes. In California, the capital gains tax includes a state tax. When you sell with an installment sale, you can completely avoid paying those taxes. “It’s amazing how many sellers don’t want to pay the IRS,” Matt remarks, “The 1031 strategy is great, but you have to find another property that way. With an installment sale you can skip all of that.”

There are a lot more details about the strategy that Matt’s been working on in his book. The link is in the link section below. Check it out so that you can start buying houses with a 0% interest rate too!

Jul 02 2018

43mins

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Rank #3: 3: The Mindset That Guarantees Flipping Houses Success

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Geremy Heath is the owner and founder of Texas All Cash Home Buyers. Texas all Cash is a residential redevelopment that turns around distressed properties for profit in the both the San Antonio and Austin areas. Since starting the company in 2009 Geremy has successfully completed over 150 rehab projects. 

Geremy came to the US from Australia in 2006 and met his wife a couple months later.  While at the airport to leave for their honeymoon, he purchased a book about real estate investing.  Much to his bride’s dislike he burned through the book during their trip. 

The fire was lit and he became passionate about leaving the rat race and working his way to financial freedom through real estate investing.

In this episode Geremy tells us how he developed the right mindset to be able to become a success with house flipping. 

You have to expect to achieve the outcome you want.  You have to believe you are going to make it.

Find out how to get the proper mindset in this episode so that your odds of success are greatly improved.

Oct 16 2015

52mins

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Rank #4: 60: [Deal Analysis] Analyzing Deals Like a Pro with Bill Allen

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Bill Allen has been flipping for over 3 years now and has done an incredible amount of growing in that short amount of time.  He’s a full-time flight instructor for the Navy and has managed to grow a house flipping business from himself to a team running like a well-oiled machine.

I highly respect Bill and how he thinks.  He’s the type of guy that loves to think through all types of situations and coming up with solutions.  I think we’re wired the same.

In this episode, Bill shares with us how he got started.  We then go into how he analyzes deals.  His method of analysis is very similar to mine.

He uses the 70% rule of deal analysis for a quick idea of whether a deal is feasible or not and then goes into more detail.

A very important thing he mentioned was that the 70% rule works well for houses in the over $100k to about $180k range but not so much for anything outside of that.  I tend to agree.

His quick method for repair cost estimation is to use $20 per soft of the house and then add costs for major items on top of that.  Now, if a house needs major repair, this number will be low.  This is more for typical updating, not relocating walls and re-sheetrocking, etc.

Bill became a father again recently.  His son, James was born with a heart defect.  Though he’s been through a lot, James is doing well. 

You can read the story here on Bill’s blog: http://blackjackre.com/james/

Bill is an awesome father and person as he decided to set up donation page for the Children’s Heart Foundation and has pledged to match all donations.

This is incredible and I highly encourage everyone to make a donation.  There’s nothing more important than our kids and I can’t think of a better cause.

Please pledge a donation here: Bill’s Children’s Heart Foundation Donation Page: http://www.childrensheartfoundation.org/donate-now

Please be sure to leave a mention of your donation on Bill’s Facebook page so that he can match your donation: http://facebook.com/blackjackestate

Jan 16 2017

54mins

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Rank #5: 118: [TAKING ACTION] 30 Deals First Year

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In a few short years time, Henry found himself transitioning from a single lifestyle- where he only had to worry only about himself- into a married man trying to provide for his family. That’s why one year ago, Henry Washington decided that taking action and pursuing his real estate investment journey was the next step, and it’s been a whirlwind ever since.

Even with a full-time day job in IT Project Management, Henry was unsure how we was going to be able to take care of his family. Desperate, he began looking into his options and decided that the financial freedom that comes with real estate investing was the best option for him. Still though, the fear of spending it all for nothing in return kept him from making the first leap. This fear was essentially keeping him from taking action to achieve his dreams. “We wouldn’t have had as much success that we’d had if my mindset wasn’t in the right place,” says Washington.

Entirely unsure of where to even start, Henry starting taking action and began by reading books and listening to the FlippingJunkie podcast. This education led him to the decision to take action again and create his own real estate investment website using LeadPropeller. After first taking action, in his first year alone, he has acquired roughly 30 deals, including flips, wholesales, and rentals and his business only continue to grow. Listen along as Henry and Danny discuss taking action and how Henry was able to get over those fears with creative problem solving, the first steps he took to get into the industry, and how he’s expanding his clientele and establishing credibility and trust in his area through networking and maintaining relationships!

Sep 10 2018

49mins

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Rank #6: 80: [Wholesaling] How Cody Made $500k Wholesaling His First Year

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Just a few years ago, Cody was selling insurance and didn’t know much about Real Estate. He heard about a little niche known as “Wholesaling” and got interested. He quickly decided to go “All in” on Wholesaling and generated over $500,000 in his first year and has since created a 7 figure Wholesaling business.

After going to a seminar in Utah, Cody jumped in to wholesaling. He took on what advice he was given and found a mentor. In 2015, Cody started listening to every real estate investing podcast he could find and that was it. He found a mentor and got in to wholesaling as fast as he could!

Wholesaling appealed to Cody because it was a great start. “I started with the end in mind,” he says. “You’ve got to build a cash buyers list. If you don’t have an end game in mind, it doesn’t matter because you can’t do anything with it.”

Building cash buyers is simple. There are a few ways to find them:

1 - Go to REIA meetings in your local town.

2 - Get on the phone on Craigslist. Call land lords or people trying to sell their rentals, they’re always interested in listening to what a wholesaler has to say. You want to look at a vacant landlord. See if those landlords are willing to sell. If they are, great! If they’re not, then try to see if they’re interested in becoming a cash buyer. Take notes from them on where they would prefer their properties to be, and boom. You just got another buyer to add to your list!

3 - Get with a realtor and have them run all of the cash deals that have been done in a certain market. From that list, look for the address and names of the buyer on the title and add them to your direct mail list. By doing this, you can see what they’re willing to buy for, and how active they are in purchasing for cash.

The bigger the buyers list, the better. 600 or more is preferable for such a large market like Salt Lake City. If you can get 20 people to inspect a home at the same time, you’ve just build up a feeding frenzy. Making scarcity and providing competition drives up your properties prices, which makes your profit even better. You want people to pay top dollar for your deals.

Because Cody markets the contract and not the property, he sends out a suggested price for the house in the promotional material material. That way, you can use that as a negotiation point to drive your profit.

Cody does anywhere from 7 - 10 deals a month, and every time there are always multiple buyers interested. Even though the market has been competitive, Cody is still bringing in a great flow of business!

A question Cody gets asked a lot is “Why don’t you just keep the properties to fix and flip?” The answer is simple:  

If Cody can focus on one thing really well, and continue to do it really well, then why not keep doing that? With house flippers, you have to focus on so many things. You have to deal with contractors, title companies, realtors, all of that. When you’re wholesaling, you don’t have to. “I’m in and out quick,” Cody said.

When it comes to marketing, it’s about 3 things.

The right thing, to the right person, at the right time.

In his first year, Cody had a budget of $1200 for marketing with direct mail. He was told to get uncomfortable because that’s where the profit comes from. At day 44 in his mentoring program, his first deal landed him $24,000.  

That covered the course, the marketing, and still had a lot left over. So now, Cody puts aside 50% of his profit toward marketing so that he can continue to grow his business.

Over all, marketing is expensive. It needs to be. But you have to hit a lot of people or else you won’t hear back. $1200 is a great starting point, but you need to keep your marketing budget up to make sure you’re marketing the right way.

Jun 26 2017

49mins

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Rank #7: 155: Back to Real Estate Investing Basics with Anabella

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This is a very special episode of the podcast with guest Anabella, our youngest guest ever! Annabella is a big fan of the podcast and when Danny ran into her mother around the neighborhood, he knew he had to bring her on. In this episode she stops by to switch things up and interview Danny with some great, thoughtful questions that will be especially helpful to any newbies out there looking to gather the basics. We’re talking about how to be successful, how to find a mentor, the most effective way to get deals for your business, and so much more!

Jun 24 2019

34mins

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Rank #8: 107: [Marketing] Direct Mail Is Dead? with Melissa Johnson

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Melissa Johnson has been on the Flipping Junkie Podcast multiple times (she and Danny run the business together and are married, so it goes without saying she’s an important member of the REI community). She runs the house flipping side of their business and does a great job doing it!

After years of running their real estate investing business, Melissa made the decision to cut out direct mail marketing at the start of 2018. Their yearly goal was to stop direct mail marketing all together. But why?? Hasn’t direct mail been working for so many investors?

The truth is…direct mail is dead. Real estate investing direct mail marketing has been declining for years, so much so that Melissa said it’s time to stop. In it’s place, Danny and Melissa are going to be focusing on online lead generation.

Melissa didn’t make the decision to cut out direct mail overnight, though. At the beginning of 2017 she had noticed that their direct mail wasn’t consistent and wasn’t performing well. Instead of cutting it off then, she decided to go all in and get that marketing strategy back up and running.

“We started a bunch of mailing campaigns and the year went on, and we were getting some deals, but it wasn’t performing the way I hoped it would when I looked at what we were spending on it,” Melissa tells. “I started looking at the numbers half way through the year and was pretty disappointed.”

Melissa’s direct mail plan started by mailing to high equity for most of the year, then they started adding in unknown equity. The unknown equity didn’t produce any leads at all, so they quickly stopped that campaign.

“We had about 30k addresses in our mailing list, based on our criteria,” Melissa explains, “We were had them separated by zip codes so that it wouldn’t be so much at one time. Every mailing was between $2400 - $2500 per week.”

The criteria for the high equity lists was anything under $250k with more than 50% equity, at people over age 40. The criteria for the unknown equity lists was just not stated how much equity the homeowners had. The equity could be unknown, unstated, they could have some, they could have none; it just means that the equity field wasn’t filled in. This list did not produce leads, so Melissa stopped that campaign.

“About half way through the year I took a look at the numbers,” Melissa says, “In September I said ‘look we’ve been spending a lot of money on this and it’s not getting us leads. We need to stop what we’re doing and reevaluate all of it’.”

The mailing lists were the same addresses, but it was all sent in a cycle. Each address would get a piece of mail from them every 4 - 6 weeks. With 30,000 addresses, that adds up.

Once Melissa looked deeper into the process and the direct mail findings, she learned that direct mail just isn’t enough to keep a business at this scale going. There’s a huge difference between a high quality lead and just another throw-away lead.

Melissa sat down and took about 8 hours just looking over every single lead from 2017 to see which ones were high quality and which ones weren’t. She read all of the notes on every property to see where that lead went, how far it got, and if it turned into a deal or not. And if it did turn into a deal, how profitable was the deal?

Overall, Melissa found that the cost of direct mail wasn’t worth the kinds of leads that they were getting. Their higher quality leads were coming from online marketing strategies and their website. The leads that came in through direct mail either weren’t quality leads or weren’t leads that converted to deals.

So when the question is asked: is direct mail dead? Melissa’s answer is, “For us, direct mail died about a year ago. We dropped it and moved to online lead generation.”

Apr 09 2018

39mins

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Rank #9: 76: [Rehabbing] Running Rehabs with Melissa Johnson

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Melissa Johnson has been flipping houses for 14 years, and man have they come a long way.

From brown (and one time green) carpet to sleek new tile, Melissa has been transforming the way she rehabs properties. But before you can make the houses look nicer, you have to have your team together.

Start with a contractor you can trust. Melissa has been working with her contractor for a long time now, to the point where they have an amazing working relationship. One of the key point of making sure you and your contractor are on the same page is to set the ground rules from the beginning.

Making sure you and your contractor have the same payment schedule agreed on will keep everyone involved happy. Melissa talks about going through the property with the contractors before hand and looking at every single detail of the house. That way, everyone is on the same page for what needs to be fixed.

There’s much more to your team than just you and the contractor, though. Melissa has been working with a realtor she trusts, and has become great friends with. It’s so important to work with people who are great at their jobs, and who are there for you.

For example, there was an issue with some buyers not being able to qualify for the property they wanted to buy and, instead of just closing out the deal, Melissa’s realtor fought and negotiated until all parties were happy. Having a realtor who will work with you, and also your buyers, is great for having your properties sold quickly.

All in all, Melissa has been working hard at showing what an amazing Flip Pilot she is. If you want to network with other Flip Pilots, join our closed FaceBook group by going to FlipPilot.com here: https://flippilot.com/beta-notify

May 04 2017

53mins

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Rank #10: 74: [Closing] From Contract to Closing

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Geremy Heath is the owner and founder of Texas All Cash Home Buyers.  

Geremy was on the podcast during the early days for episode 3 where we talked about The Mindset That Guarantees Flipping Houses Success - Click Here To Listen

We talk about his Miracle Morning routine…which is incredible.  If you want to find out more check out my interview with the author, Hal Elrod: Click Here To Listen to My Interview with Hal ElrodThere’s a lot that goes on in between contracting and closing on a house. Especially when it comes to the numbers. You have to make detailed estimates of the labor costs, material costs, and other specific skew costs. If you’re not precise in your estimates, then you’ll run into some funding roadblocks. Geremy makes the suggestion of not going through with a property if the exact estimate is higher than 10% more than the original estimate. When Melissa and I were doing it before we got our team, we would know if something was off when we got to the rehab (which wasn’t too fun).

This work does need to be done regardless. And Geremy makes the point that it’s better to get it over with sooner rather than later. It’s better to know what you’re getting into before you start the closing process.

To get your invite to the new Flip Pilot closed Facebook Group, visit the

Apr 03 2017

52mins

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Rank #11: 105: [LIVE] My Flip Hacking Live Presentation

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Danny spoke at this year’s Flip Hacking Live event! His presentation covers lead generation for real estate investors and how the market is shifting. Are you staying on top of it? This is the audio from the presentation, but you can watch the video on Flipping Junkie’s YouTube channel, check it out in the link section of the show notes.

How many people are sending direct mail? When that potential seller gets your postcard or letter, what do they do? They go online. The next thing they know, they can’t find you online. If you’re not online, you’ve just missed a lead. If you are online, but not optimized, then they’re seeing you beside your competition. You competition has more reviews than you, and looks more accessible to the seller. If you were in the seller’s position, who would you pick? It’s pretty obvious you’d go with the one that has the better reviews.

That’s why you can’t just have a website anymore. You have to have a fully optimized, built out, lead generation machine. There’s no way you can compete with your competition if you get a website, set it up, and then do nothing with it. It’s an on-going thing.

You need a website online that’s credible, trustworthy, and that builds you recognition. Danny and Melissa have generated thousands of leads and deals through their website, but it didn’t happen over night. It was a long road to building their website and grow their ranking. Search engine optimization takes time and practice.

If you’re not at the top of page 1, you’re missing leads. But how can you get it to rank that high? Keyword research is the first step. As a real estate investor, it’s obvious you need to rank for keywords like “sell house fast”, or “sell my house for cash”. Those keywords are what all of your competitors are using as well. So how can you beat the competition when it comes to ranking?

You have to set realistic expectations for yourself. You’re not going to rank for these keywords in the first month. You’re just not. You have to constantly keep working on your website, you have to be adding content that’s going to keep helping you rank, and you have to be patient. SEO can take 6 months to a year to start showing progress in Google. That’s a long time, but it’s worth it. Why?

SEO is the cheapest was to generate leads. How much does it cost to optimize your website? Time. That’s it. You have to invest the time into building it right, but once it starts ranking you’re going to start getting in organic traffic that converts.

The next step, after you have your SEO set up to start getting you organic leads, is marketing. PPC, or Pay Per Click, is a pay to play marketing strategy but it works. Danny uses a combination of PPC platforms, but the one that performs the best is Google AdWords.

Google AdWords places your ad, website, or landing page as a search result that appears above organic results. So if a seller is searching the phrase “sell my house for cash in San Antonio” and your AdWords campaign matches that search, you’re going to appear as 1 of the top 3 results on page 1. Why? Because you paid for that spot.

Now, yes, PPC can get expensive. But the cost per deal is worth it. If you’re spending a few thousand running an ad and it gets you a deal that nets you tens of thousands, is it worth it? Yes! Because you put yourself above the competition who doesn’t have the time or the money to run ads.

Starting to get a taste for online marketing? We don’t blame you. It’s worked for Danny and Melissa, and it can work for you too. That’s why Danny hosts weekly webinars to teach you about the latest online marketing strategies that work. You can get your free seat by following the links in the section below!

Feb 26 2018

45mins

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Rank #12: 62: [Marketing] Online Auction House Deals with Paul Lizell

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I’ve been hearing more and more investors talk about how they buy houses using online auctions like auction.com.  I’ve been fascinated by the strategy and was glad to get Paul Lizell on the show.

He’s buying 8 to 15 houses a month that he buys from online real estate auctions….all over the country.  How cool is that?

Paul started in Real estate in 1999, became a full time investor in the fall of 2004.  He had a background in commercial business loan underwriting and 4 years as a business development officer.  He’s been a licensed Realtor since 2006.  As a national real estate wholesaler, he does 6-12 fix and flips per year and owner finances 10 properties per year, mostly to investors.

You’d think that the ratio of houses to bid on to the number of deals he gets would be pretty crazy but he actually does pretty well.  He’s got online real estate auction thing figured out to where he bids on about 150 properties and ends up with between and 8 to 15 per month.  That’s awesome!

His favorite auction websites are:

auction.com

xome.com

hudsonandmarshall.com

realtybid.com

hubzu.com

He mentioned that hubzu is nice because you can get away with small earnest money deposits than the typical $2,500 the other auction sites require.

When looking for properties to bid on, he focuses on the smaller markets and targets in on the houses that have been listed for a long time.  The houses that are for sale for over 180 days or more are the ones that he puts bids in on.

During the episode he also gave several reasons why he prefers to close each of the deals at the title company of his choosing rather than the one preferred by the bank that owns the auction property.  The main reason was their hidden title company fees and lack of control over what is going on with the deal.

He was also kind enough to share with us his technique to get Realtors to tell us their BPO (which most don’t want to give out).  He does this by not asking for a BPO but by asking, “what would you list it at for a 30 day quick sale?” 

Brilliant!

Be aware that when buying auction houses online and then trying to wholesale them, you will not be able to assign them.  You will need to double-close…yet another reason to have a title company you know that can close the deals.

Jan 30 2017

46mins

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Rank #13: 14: How to Flip Houses With Minimal Risk w/Nathan Cron

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Nathan Cron is the broker at New Western in San Antonio and Austin.  They did 370 deals last year! 

Nathan is also a good friend of mine and we have done a lot of business together.  He is one of my ‘go-to’ guys whenever I wholesale a deal. 

In this episode, Nathan shares how he got started in this business by answering a newspaper ad after college.  He credits his success to being blessed to get started with that company and getting the proper training.  He now gives back by helping people get started through New Western.

He shares the stories of a couple of deals where he bought them, fixed them up and then rented them out for incredible cash flow.

Nathan shares my belief that it’s important to buy conservatively (cheap) and try to stay as debt free as possible.  We talk for a while about how the market is always cyclical and if you want to be successful throughout each cycle, you have to be somewhat conservative.

Nathan’s strategy for attaining his goal of $10,000 month in passive income is just plain smart.  He waits until he has the cash to buy the house without a loan.  This way he gets incredible cash flow, tax benefits and security.  He’s also a little different in that he rehabs these houses as if he is going to sell them.  Most landlords do lesser rehabs for rentals to save money.  He doesn’t want to have calls about broken toilets and clogged drains so he makes sure his rentals will be as maintenance free as possible.  This also does wonders with attracting the “right” tenants.  The tenants that won’t make your life miserable.

We also talk about how being resourceful is what separates those that succeed at real estate investing from those that do not

Dec 28 2015

49mins

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Rank #14: 4: Building Systems to Flip Over 500 Houses w/Justin Williams

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Justin Williams has been a full-time investor for over 8 years.  He’s flipped over 500 houses.  He considers himself a house flipping machinist.  What he means by that is that he is all about building systems so that he could scale quickly and do more with his time.

Here’s what you will learn in this episode:

  • How he won a car for a house flipping challenge from his mentor but never received it
  • How Justin doesn’t stress about those things and just focuses on the future and the fact that he learned how to make so much more money flipping houses that the car didn’t matter
  • How Justin was in a really tough spot when the economy changed and found the opportunities out of the adversity and ended up doing better than ever before
  • The question to ask yourself every time you do something during the day
  • Why it’s wrong to think you can do everything better than someone you could hire to do it
  • How he found the person that basically runs his house flipping business
  • What he’s noticed from the people that he coaches that succeed that is the reason for their success

I was busy doing most of the work in my flipping business and had a talk on the phone with Justin. 

His excitement and approach to flipping through systems really inspired, so much so that I asked if he’d mind if I flew to California to hang out with him for a day to learn more.  This was out of the blue, mind you and he still accepted. 

I immediately booked a flight and spent a day of crash course learning from him. 

Oct 20 2015

44mins

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Rank #15: 135: Wholesaling in 3 Markets Within 8 Months with James Hodges and Alan Biel

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In this episode, James and Alan sit down with Danny to talk about the strategy they created and followed to create a partnership that moved them into 3 different markets in only 8 short months! Alan Biel Alan Biel bought and renovated his first house in 2004, just after he graduated from college and married his wife, Amber. Their original plan was to live in the house, but they ended up selling it for a decent profit and this led them to do the same thing several more times in the next 10+ years or so. In 2016, he began flipping on a larger scale, and by the end of 2017, he knew he needed to make some changes to his semi “solo-preneur” operation. He decided that he would finish the flips he was working on and then try something different. So, he joined a top Mastermind group in January of 2018, learned what wholesaling was, partnered up with James Hodges in March of 2018, and they began wholesaling full time! James Hodges In 2013 he graduated from College and got married to my wife Meagan. They lived in College Station for a year after they got married and then spent the next two years traveling to various countries around the world doing volunteer and missions work. At the end of 2015, their first daughter was born in Johannesburg, South Africa. Shortly after she was born they moved back to Texas and began a career as a personal fitness trainer. He did this for 2 years, eventually starting his own online fitness business. At the beginning of 2018, he made the decision to pursue Wholesaling, as was not getting the traction he wanted in my fitness business, nor was he living the lifestyle he wanted. He began his wholesaling journey February 2, 2018, and started to gain quick traction within weeks of starting. In March of 2018, he met and partnered up with Alan Biel, and they began Wholesaling full time.

Jan 11 2019

1hr 17mins

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Rank #16: 117: [MAKING OFFERS] Getting Your Offers Accepted with Dave Rose

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Dave Rose has been flipping houses in San Antonio, Texas, for over 8 years. He is a firm believer in keeping it simple. His plan is to build a huge rental portfolio that will allow him to achieve true freedom. Dave has been interested in real estate from the time he was young. He started as an adult with wholesaling, then started picking up rental properties in any condition and has continued to grow his real estate portfolio. He occasionally does flips to bring some variety into his routine. Dave talks about being a pioneer and using the BRRRR Process, (Buy, Rehab, Rent, Refinance and Repeat) that helps you be in with little to no money on the deals if you buy them right. Danny and Dave talk about how the deal volume and how the wholesale market is being driven up by competition and watered down product raising prices that caused Dave to shift from wholesaling to focusing on building a rental portfolio and doing more rehabs. The power of networking is what helped Dave get started in the industry and when the opportunity presented itself, Dave wasn’t scared, didn’t hesitate, he jumped in and hasn’t looked back. He started on a 100% commission based structure working as acquisitions for both buying and selling. This experience helped him understand the industry and that many people don’t “think like he does” and are willing to take different offers on their properties. He learned a lot about making offers and ultimately that you don’t know what people are willing to accept, especially when they are treated with respect and care. Dave says, “we aren’t here to make their decisions, we are here to solve their problems.” when it comes to talking with potential sellers and before he goes about making an offer on the property. Danny reflects on how important it is to connect with motivated sellers to understand where they are coming from to really serve a need and help them. Only around 10% of people they buy homes from are in a really sticky situation where they need their homes purchased right away. A small percentage of the overall. Understanding these components can really help you understand how to convert to more deals when making offers. They discuss an example of a property where Dave worked with the seller to give an extended closing date and how things like help with moving, help with finding a place to go are factors in the seller’s decision making process. Dave takes a more personal approach instead of a cut and dry business approach when making offers and conducting his business. Money isn’t everything, there’s a lot more to the business than just making money - they discuss how they are in the business of truly helping people and how this factors into every offer they make. Dave still goes on appointments and discusses his approach to this more personal than business approach. He talks through several examples of how he’s able to connect with the different sellers he meets with on a regular basis. Danny and Dave talk about strategies to still be able to spend the time with potential sellers rather than just treating the deals like a conveyor belt and how this has helped him when making offers. . Especially when you have a team working for you and you aren’t on every call. Dave speaks about how majority of his business at this point is repeat, word of mouth and referrals, he credits a lot of this to the personal connection he’s making with the sellers and his ability to hear and help them. Danny asks Dave for any predictions for the changing marketing upcoming and how that might affect them making offers. They discuss how their strategies and integrity can help them weather the storm. Dave predicts the market slowing and prices dropping, he predicts that certain areas that are really overpriced will come down and will be helped by the interest rates to bring that down. He doesn’t expecting anything like ’08-09 but more of a healthy dip in the market. Dave is wanting to buy more rentals and do more flips moving forward, isn’t as interested in owner finance. Dave is more interested in building his portfolio so he has a steady stream of regular income. He feels like rental properties are the path to creating his true freedom. He’s looking to bring in around 120 rentals in 5 years and wants to be at 300 rentals in ten years. Dave and Danny talk about different types of rental properties he seeks out and what is in his portfolio. His portfolio carries a blend of different types of properties including multi-unit and single family homes in all different areas of the city. Dave talks about what materials he uses in his rentals. He uses IKEA cabinets in all of his rentals and actually uses quite a bit of materials from IKEA. He buys higher quality materials that are used every day like door handles, and even uses solid doors. Even though they cost more up-front they end up saving money in the long run. He recommends to make sure there’s a clean out on your sewer line because they will always back up. They talk about how the process doesn’t change from a flip to a rental, putting in floors is putting in floors. Take it room by room and follow the process. Dave talks about how he doesn’t want a big business so he’s not looking to bring in a big staff but is looking to hire someone to help with property management and possibly some sales and acquisitions. Dave had a first look demo of the new FlipPilot software so he reflects and gives his first reaction to seeing the system. He says that what’s out there to manage REI businesses isn’t really that great, and says he saw a very well polished system. He said the system was thoughtful and seemed to include a lot of functionality. Dave mentions the value of what you will be getting with all of the different parts at the cost and that at first glance if you utilize the program it should make you 10 fold what you pay for it if you use it properly. For more information on FlipPIlot, sign up for our emails on flippilot.com and get ready for our beta launch in September. Dave’s contact information: 210-632-1432

Sep 04 2018

46mins

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Rank #17: 131: Fast Success as a Rehabber with Joe Spence 131: Fast Success as a Rehabber with Joe Spence 131: Fast Success as a Rehabber with Joe Spence

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Joe Spence is an investor from Lancaster, Pennsylvania, whose journey began after he was laid off from his sales job in early 2016. It had always been his and his wife Sarah’s dream to become real estate investors, and this quick turn of events made them ask, “Do I really want to go back to a 9 to 5?” With a baby on the way Joe knew he had to do something, and there was no better time than the present to take action and make it happen.

Joe began by calling anyone and everyone he knew in real estate, asking if there was possibly anything for him. Within a week and a half he had his first deal from someone who knew someone who knew someone, and so on. He shares that his first time walking through the house calculating costs to make an offer, he had almost no clue what he was doing. He was familiar with the formulas because he had educated himself with books and podcasts, but he says that “there’s no substitute for the real thing.”

Joe and Danny also discuss contractors, and the importance of checking up on the progress when you’re rehabbing houses. Joe talks about the many lessons he’s learned along the way in regards to trusting and overseeing those carrying out his flips. He says that at first, it was intimidating to ask contractors what was going on in the rehabs out of fear of sounding uneducated or unqualified. Once he was able to get past this fear and speak openly with the contractor about what was going on in the project, he says that their relationship only grew stronger and now there is a mutual trust and respect between the two throughout the process.

In the beginning of 2018 he turned his business more towards wholesaling rather than rehabbing houses. When asked if it can be difficult sometimes to walk away from a bigger check by deciding to wholesale instead of rehab it yourself. “I’m not afraid to leave a little meat on the bones for the next guy,” says Joe. He gives a lot of credit to those who helped him in the beginning of his journey, and he hopes to be able to help others in the same way.

Dec 10 2018

52mins

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Rank #18: 61: [Working With Sellers] Advanced Real Estate Investor Sales Strategies

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John Martinez, founder of Midwest Revenue Group, LLC (www.midwestrev.com)  is a sales development expert and a highly sought after consultant who brings humor, insight and real-world advice to his audiences. His practical, street-smart approach to selling has helped hundreds of investors, sales organizations, call centers, business owners, and independent professionals increase their revenue with more control, greater confidence and less effort.

Today I wanted to talk about how to handle negotiations with sellers so that we get the price we want and they feel good about the whole process.

This is an aspect of buying directly from motivated sellers that keeps a lot of people on the sidelines.

John shares with us today several tips for working with motivated sellers so that they feel good about the process and everyone gets what they want.

John’s first tip involves empathy.  You’ve got to have empathy for each and every seller and what they are going through.  Period.

Don’t hide what you’re feeling and how you feel about their situation.  Let them know that what they are going through is not easy and that you know it must be hard.

John’s second tip is to make use of price anchoring.  You’ve got to reset whatever initial price the seller is expecting to get so that your offer doesn’t hit them like a huge punch to the gut.  One way to do this is to share recent comps for nearby houses that have sold for low amounts. 

As you negotiate price, continuously lower the increment that you come up in your offer.  This will signal to the seller that you are nearing your max.  He also advises that you end with an odd number as your final as it appears to be your highest calculated offer.  Great tip!

If your max offer doesn’t do the trick, make non-financial concessions.  Offer to allow them to leave stuff they don’t want behind.

I asked John about common objections from sellers and how to handle them.  I absolutely love the approach he offered.

He doesn’t feel like there is ever any canned objection/counter that will work.  It’s always more of a situation by situation ordeal.  His approach is to find out the real reason for why they are selling and have them hash out what objections or problems they have with doing so. 

Then, understand that you can never overcome sellers’ objections.  They must overcome their own objections.  You can aid this by asking them questions that plays their objection against what they are trying to accomplish.  In this way, they will see that accomplishing the sale of the house and resolving the situation is much bigger than the smaller problem of the objection.

Jan 23 2017

47mins

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Rank #19: 90: [Finding Deals] Working With Wholesalers For Deals with Chance Housos

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Chance started getting serious about real estate around 2 years ago. He did 16 flips last year and has been doing 2-3 a month this year. He gets around 30% of his deals through wholesalers and market for the others.

Chance and Danny were talking at the Mastermind class about deal sources and where their deals come from. Chance had mentioned to Danny that about 30% of his deals were coming from other wholesalers, which is amazing! Let’s see how he’s working these relationships to keep that percentage up.

Chance got started in real estate investing when he bought a house from his mother in 2008 / 2009. A subject 2 property (even though he didn’t know what that meant at the time), turned into his first house he took over. It needed the work to get it to market value, but Chance lived in it for a few years. When he decided to sell it in 20013, he ended up making a profit for roughly $50k with little work put into the house. When he moved, he told his wife, “We have to get into real estate!” And that’s how it started!

The benefit of working with wholesalers came around by networking as much as possible. Meeting anyone in the business opened doors and opportunities to connect with active investors who have profitable deals for flippers and rehabbers. There were always wholesalers who were more reliable than others, but it’s all about making quick decisions to get the deals done. Chance spent his time networking with other investors to grow his business.

Other than just networking with other investors, you can talk to homeowners and business owners to get your name out. When it comes to bandit signs, as long as you’re in communication with them, they tend to be ok with you posting your sign in their yard. For example, offer to pay their water bill for the month to keep your sign in their yard if it’s near a busy road. It’s something simple to get your business’s name out there and expose you to other investors.

The deals that are coming to Chance, as of now, are coming from Facebook groups (Mastermind, Flip Pilot, etc), mailing lists, and networking. Mailing lists tend to be for lower experienced buyers who are willing to spend more and make a little less. As far as the work that Chance does, the majority of mailing lists that come to him tend to not have the deals he’s looking for, but there’s always the occasional solid lead.

IFTTT.com (If This Then That) is a great place to look for the best keywords to search on sites like Craigslist and Backpage. Chance looks for “fixer upper”, “rehab”, “ARV”, “vacant house”, “motivated seller”, and finds a good amount of leads. IFTTT.com is a great place to set up ‘recipes’ to look for Craigslist queries to see which keywords you should be searching to find the best leads online. If you’re interested in hunting for leads from your desk, this is definitely a place to start.

Chance’s focus for the future is leaning toward sourcing their own deals. Their ability to source their own has grown, and in order to turn the dial up and flip more properties, the best option is to work for themselves and find more deals. As long as there’s someone to do the busy work and go to those properties, it’s very manageable.

Aug 28 2017

50mins

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Rank #20: 111: [MARKETING] How Kyle Found Success with Kyle Burnett

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Husband and father to a 4 month old baby.  I started investing about a year and a half ago.  Ended up with a loss of $700 for 2017 but the first half of 2018 we will gross over $125,000 with a goal of $250k for the year.

Kyle started out in real estate investing just like most investors do. He was unhappy at his desk job and wanted a way to achieve financial freedom. There were some learning curves he had to overcome, though. When he and his wife got married they used the money from the condo she sold to buy their first house to flip. Unfortunately Kyle ended up losing money in that investment.

One of the biggest learning moments in that first house was figuring out how to manage contractors the right way. Kyle found that the contractors weren’t showing up to the property frequently, they were taking other jobs while still working for him, and were spending too much money on supplies from hardware stores. “That was a learning experience,” Kyle says, “Now I check in with my contractors every day to make sure everything is going smoothly.”

Luckily for Kyle he had another property already being worked on by the time the first house was sold. This property went smoother, getting him a decent profit. “You have to stumble a few times before you get the hang of it,” Kyle admits. That’s so true. Starting your own real estate investing business is a learning experience.

Once the first two properties were done with Kyle started getting in the groove with his business. As far as marketing goes, Kyle has been doing direct mail and managing leads on his website. He has his phone number on the postcards he sends with a call to action to text him if they’re interested. “I haven’t gotten too many texts,” Kyle admits, “but a lot of people go to my website from the postcard.”

A mixture of direct mail marketing and having a websites for people to go to has been working really well for Kyle. “I think it’s from people not wanting to make a call, but feeling a lot more comfortable filling out a form online,” he tells. To be honest, that’s what we’ve found works best too. There are so many motivated sellers who get nervous about talking to someone asking to buy their house. The detachment of filling out a form online is more comforting for them.

So what made Kyle get into real estate investing? Well, the condo his wife sold when they got married gave the couple roughly $20k. Initially Kyle wasn’t planning on getting into real estate investing. In fact, it all started with a Google search for what to do to invest the money. “I knew I didn’t want to spend it or just put it in retirement,” he says, “Honestly I just Googled ’ways to invest’ or something like that and real estate kept coming up.”

Kyle knew he didn’t want to build a renting portfolio. “Flipping was more appealing to me. I didn’t like how long you have to commit to renting,” Kyle says, “I didn’t start with Rich Dad Poor Dad or anything. I just searched in Google and did research there.”

It just goes to show important it is to appear online. If you want to get in contact with Kyle you can reach him on his website or email him at kburnett@ibuyhouses513.com.

May 14 2018

47mins

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