Flipping Junkie Podcast with Danny Johnson

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126: Wholesaling While Running Another Business with Jordan Lagrassa Nov 05, 2018

Show notes

Jordan Lagrassa is a real estate investor in Texas who's been in the game for about three years now- on top of running an entirely separate roofing business! In partnership with another investor, he has established a small business wholesaling houses part-time, and has also accumulated a few rentals along the way. Jordan started with his roofing business, and moved into investing after trying to find different opportunities and ways to support his family and make money (sound familiar?). Jordan shares with Danny how he balances the two jobs, mentioning how it really depends on the season when deciding where he can and should focus his attention. Due to a slow down in the rainfall and other harsh weather in Texas, his roofing business has not been as busy and he has been able to dedicate more time to establishing himself in the market. He says an average day would consist of about 4 hours working on his wholesaling business, and about 2-4 on the other. While right now this method works for him, he sees a value in being able to shift all of his attention on wholesaling and hopes to be able to move toward that direction in the future. When talking about how he got his start, he talks about using PPC via his LeadPropeller site, and how that process worked out for him. They mention their concern with the sentiment that simply signing up for a website will bring you the leads that you are looking for and express the importance of quality over quantity. "With direct mail you might get more leads, but the number of actual qualified leads that become appointments, that then become deals, tend to become a little bit worse than [those] from PPC," says Danny. Jordan shares that it was a mix of direct mail for the first three months, and then PPC for the following three that brought him his first deal after 6 months. They also talk about what training programs did for them as beginners, and both Danny and Jordan urge investors to make the investment. "You're using your money to gain more knowledge that's gonna help you make more money as long as you're willing to take action and make it work," expresses Danny. Moving forward, Jordan shares that at this point in time he's working on building a buyer's list as he begins to see how the market is starting to change. He hopes to keep wholesaling houses part-time, but wants to shift more toward rental properties in hopes of creating a passive income so he can commit himself where he feels his time is best spent.

125: 3 Deals in 2017 to 40 Deals in 2018 with Lee Taylor Oct 29, 2018

Show notes

Lee Taylor is a real estate investor in the Middle Georgia area. Like many, he had a corporate job in transportation managing a trucking company. His career in investing began after he reached out to a friend of his who went on to help Lee with his first property. Lee bought his first investment property in August 2016, his first flip in August 2017, and was able to quit his job and begin investing full-time. With over 34 properties purchased already- most of those with some type of partnership- he has big plans for house flipping in 2018. "It was a challenge but we scraped and hustled and made it work, and we've just taken a lot of action," says Lee. Lee shares with Danny the ins and outs of his business and how he decides which options are the best for house flipping in 2018. He explains that one of the most proven methods for finding deals and private lenders is networking and relationship building, and contributes much of his success to these methods. "I don't believe in competition, I believe in collaboration." He now focuses on lead generation, and later goes into detail about his various exit strategies depending on what is the best option for the given property. After establishing himself in his market, Lee made the decision to co-run his local REIA with a fellow investor, and dedicates a great deal of his time to helping and educating other investors in his area. He is appreciative of the opportunities that came to him from different events and groups, and wants to be able to share what he learned with others in a collaborative effort, rather than strictly competitive. As the market appears to be beginning to change, he hopes to one day expand into other areas of the industry such as property management and construction.

124: 7 Deals Part-Time and Going Full-Time Within a Year with Brad Woodalll Oct 22, 2018

Show notes

This week's FlippingJunkie podcast episode begins with a FlipPilot update!! We're so excited as we get closer and closer to the launch, and we appreciate your patience. "We're working to make sure that when we do launch, everything that you need to run your business is in that minimum viable product," says Danny. In the meantime, check out our FlipPilot Key Feature Videos on YouTube and join our private FlipPilot Facebook Group, and know that we're working hard to put out the best product that we can!

Brad Woodall's real estate investing journey began all the way back in 2005, when he was only 21. The market crash led him to a job in corporate America where he worked in fraud prevention and investigation for about 10 years. When his first son was born in 2015, he knew he wanted to be able to be around and involved in his children's daily lives and knew that going from part-time to full-time real estate investing would provide him with the lifestyle he wanted.

Along with a new baby came a new mindset, and Brad dove back into investing while still working full-time. Like many of us, he binged on every podcast and book on real estate investing he could find. That same year, he set up his LeadPropeller website and now uses LeadPropeller Fuel to handle his site's SEO (Brad mentions that he once got a lead from a blog post, and one even from a YouTube video thanks to his site ranking). In May of 2016, he sent out roughly 300 pieces of direct mail and in October of the same year he landed his first deal.

Fast forward to January of 2018, Brad was able to quit his job and go from part-time to full-time real estate investing. He goes on to discuss his typical walk-through method and what he's found has worked for him in the past. With an offer already in his head, he tours the house with the seller and gets to know them and try to learn their motive for selling. Brad and Danny emphasize the importance of building rapport with your sellers. "Just be conversational, just be a real person. They just want a real person there to talk to," says Brad, who prefers to take the time to sit and get to know the sellers and establishing a relationship beyond just the numbers.

123: Talk to People with Mike Hambright Oct 15, 2018

Show notes

Mike Hambright has been investing for a little over 10 years and operates FlipNerd.com where he educates real estate investors. After losing his corporate job due to downsizing and with a newborn son, Mike decided to dive into real estate investing. "I didn't want to work really hard for somebody else anymore," said Mike. He got into the business right before the market crash in 2008 (despite everyone's advice not to), and he and his wife found great success in the downturn. When he first began, Mike was a little naive to the market. He had no interest in networking because he saw others as competition, but after a year of building his business he realized the value of networking and building relationships with others in your market. After doing a deal with another investor, he had the realization of, "why wouldn't I want to be around more people like me?" Mike discusses with Danny how he formed his relationship with his bank in the beginning. While at first the lenders were hesitant, once he showed them his past deals and the transformations they went through it was much easier to get their support. He also mentions his "rehab live" method, where he takes people through the house at 3 different points: beginning, middle, and end. This is to really showcase the transformation that takes place in his rehabs and talk about the work he was doing, and through this he established many relationships and really built up his network. Mike also stresses the importance of laying your business' foundation before anything else. Without systems and processes, your business will not be able to grow like it could. He mentions that while you may have gotten into the business for freedom, it's going to take work to get there. After coaching other investors for almost 9 years, Mike says that those who have trouble finding success are the people not willing to put in the hours and work, and realize that the business is so much more than the glamour that you may see on tv.

122: [MARKETING] 38 Deals Using LeadPropeller Fuel with Frank Heron Oct 08, 2018

Show notes

Frank has done 38 deals using LeadPropeller Fuel.

Frank Heron from Naples, Florida. He covers the Southwest Florida market which is Naples, Florida, up the coast to Bradenton. He is married to his wife and business partner Jazmin of 12 years. They have two beautiful little girls, Valentina who's eight years old and the youngest Francesca who's two years old. Who often drive around saying, "Daddy that house needs money." He has been in the business since 2012 and been a part of over 1,000 transactions. Now he just concentrates on 100% wholesaling.

121: Principles For Success as a Real Estate Investor Oct 01, 2018

Show notes

This week's episode is about the real estate success principles necessary for you to build your best possible business. Danny is joined by James Steffy, listen along as they talk about following up, making offers and the importance of understanding your sellers. James Steffy first got into the real estate investing industry 4 years ago after returning home from South Korea where he and his wife taught English classes. Taking the decision into their own hands, they took a mini tour across the U.S. to cities like Atlanta, Houston, and Sacramento so they could make the best decision about which market to dive into. Ultimately, they decided to stay in the Tampa-Bay area of Florida and it was there that Steffy started his own real estate investor business. Steffy started out by listening to various podcasts and the FlippingJunkie blog, but like many people, he was overwhelmed and unsure of where or how to start. "I was brand new to real estate investing at that time. I had been reading a lot about the business and knew it was what I wanted to do, but was feeling overwhelmed with actually taking the first steps to get started," says Steffy in an email to Danny. After following a course offered by Danny at the time, he was able to find the courage to take action in his journey. His first deal was less-than-perfect and in a rough part of town, and while he put almost all of his money into it he soon realized he couldn't sell it. At the same time, he began going to local investor meetings and networking, which pointed him in the right direction to take his business to the next level. Steffy also discusses his experience with cash offers versus owner financed offers. After finding that he was not having as much luck with his cash offers, he began offering the two options to sellers at the same time. "You never know what someone is after," says Steffy. He goes on to say it's important to know where your seller is coming from financially, but more importantly, emotionally, so that you can really understand their situation and better cater to it, which will in turn mean a better turnout for you as well. "The more appointments you go on, the easier it gets." Danny and James go on into further detail about the importance of following up even after a no, the importance of making an offer, how they're adjusting to the changing market, and more of the real estate investing success principles involved in building a successful real estate business. While there are some key steps you can take to set you apart from your competition, both agree that there is no "magic answer" to it all.

120: [SYSTEMS] Using a CRM To Improve Your Flipping Business Sep 24, 2018

Show notes

In episode 120 of the FlippingJunkie Podcast, Danny is joined by Mike Cowper to discuss how he got into real estate investing, his rapid growth, and how he did it all with the help of a CRM software. After tossing the idea around for many years, Cowper jumped into the industry in 2014 when he realized that it was time to stop talking about it and finally make it happen. He started out by trying to obtain as much knowledge as he could by joining every group and attending every meet-up, constantly surrounding himself with people who were better than him at what he was trying to accomplish. Through the help of a mentorship program, he quickly bought his first house. Cowper went on to work for Mike Simmons, a real estate investor who at the time was moving toward wholesaling rather than flipping. With a strong sales background, Cowper had a skill to offer Simmons so it became his responsibility to acquire properties. Now the two have a division of labor that allows for a system of checks and balances and really pulls to each of their strengths, and both credit their success to "creating systems, processes, and hiring people," which ultimately pushed their business from earning $250,000 a year to $1,000,000 a year. Cowper later discusses his hiring process with Danny, and how he's found a great significance in systemizing the entire process. He compares it to his LeadPropeller website, saying "We always want to find leads, you have to do that with people also." This leads to a conversation about the necessity of a software to help your flipping business. Danny and Cowper discuss the problem with the automation softwares available now, and Cowper shares how his current systems are unreliable and often make mistakes that have potential to cost his business money. He states how this is not just an issue of liability, but an issue of credibility in how his business is perceived by the public. Ultimately, he hopes to find a CRM software for his flipping business that will make him feel confident that things are going to be taken care and can trust the system and let the stress go, and mentions his eagerness to see how FlipPilot will solve any problems he's currently facing in running his business.

119: [BUSINESS] Business Coaches, Hiring, and Branding Sep 17, 2018

Show notes

Darren Smith has been into real estate investing since 2003, and throughout that time his business has been through a series of dramatic changes via the help of a solid team and business coach. After spending many years in the army and later in IT, Smith became attracted to the idea of real estate investing through a good friend. However, not long after taking action he realized he was in over his head and his business shortly crashed. After deciding to go back to school to get his masters, Smith shifted his focus back to his job in computers, but he found that his love for real estate never left so he decided to jump back in about 5 years ago. After signing up for every wholesalers website he could find, including LeadPropeller, he got a call from someone in the market who took Smith under his wing. While he made next to nothing, he was able to learn things like rehabbing, contracts, and more without any of the financial risk of losing his own money in the process. Smith and his wife moved to Colorado shortly after and he began his own business there- Sell My House To Smith. At the time, he was running the entire business himself as he always felt like he just wasn't there yet and was concerned about the added stress that came with being responsible for others and their livelihoods. With the help of the Mastermind group that both he and Danny are apart of, he finally found the courage and within 30 days had hired 3 new team members to work for him. He found himself surprised at the talent that came in to apply for him and the experience helped him to realize the, "huge difference between having someone who's good at their job and having someone who is just so much better than you at what they do." Aside from a strong team, Smith and Danny also discuss the guidance and the peace of mind that a business coach provides for their real estate businesses. "I wouldn't be here today without him," says Smith in regards to his own business coach whom he met at via The Alternative Board, which offers business coaching and advisory board services. All it took was one session for Smith to realize what his business coach had to offer him, his real estate business, and his team. In fact, Smith is so confident in the help that his coach provides him that he meets with him himself every two weeks, and his operations manager meets with him monthly, as well as a team session that Smith says helped to really bring his team together and form a stronger unit. Smith also discusses his excitement for the upcoming release of FlipPilot, and mentions how his own team was blown away after the chance to sit in on an hour-long demo with Danny. "We love all your other products you're doing for us, so we can't wait to get FlipPilot going."

118: [TAKING ACTION] 30 Deals First Year Sep 10, 2018

Show notes

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!

117: [MAKING OFFERS] Getting Your Offers Accepted with Dave Rose Sep 04, 2018

Show notes

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

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