Natron Heights, Air Vian, Zillow discussed on Real Estate Disruptors

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So I'm evaluating it is a flip, but it's in an area called Natron Heights. It's not really a flip area per se especially this neighborhood, but it was truly turnkey now. That actually all worked to my advantage because if I did that now I would have offered more because I would've known that as a turnkey rental. The place had value, but to me, I'm looking at seventy percent of Air Vian. It's not unusual in this area to have a RV like fifty thousand dollars. So I'm saying I'm thirty five minus repairs, the places turnkey key, but the whole thing would be updated to look like these ones on hgtv. So my goodness I don't even know if I could wholesale this place at any number, and so that worked advantage because I went back to the seller and I said listen. I don't want to insult you. The reality is you know that I'm going to probably flip the. House. And by the time I run those numbers backwards and subtract awesome profit. You know what the values are here. I'm afraid it's not gonNA leave much meat on the bone for a purchase price and I really don't want to insult you and I kind of left it at that, and that was the key because then they felt comfortable enough to say, Hey, we're not expecting much like we really WanNa get rid of this place. You're not going to insult us we understand you have to make money. So I said nine thousand dollars. They said, we were hoping for twenty. We settled on eleven I deal sold it for twenty nine. So I, got it for eleven sold it for twenty nine, which was eighteen thousand dollars, and there aren't a ton of people in Pittsburgh doing wholesaling. So I remember I went and talked to a couple people and they were just shocked. You got it for eleven years. So you're GONNA have to do a double. Close I mean at eighteen thousand dollars. That's insane like, and of course now, you know that's kind of normal. But back, then it was kind of like a really big deal. So that was the first one again proof of concept and from there just kind of snowballed eighteenth grade disarray one I would take that now for sure. Okay. So nine deals your first month and you haven't looked back except for covert. So, what was the journey like the rest of the year? it was a struggle. Just because the volume continued I, mean in Fr- from month three through month eight no month nine I was a solo per nor. And I had no staff and no six months. We did close to seven hundred, thousand dollars as a one man show. My wife was still working full-time. She's a, she was a nurse Practitioner as well as a mother. So she had her hands full I had no staff. So I'm doing the marketing I'm doing the acquisitions I'm doing the dispositions I'm doing the transaction coordination. Still trying to keep up with my pipeline. and. So it was good and bad. The good would be that a I learned how to do everyone's job. So now when somebody on my team tries to talk shit out so difficult to show a property when the sellers are in the house or the, I really can't lock this up at this number because of XYZ I've been there. I've done it as a matter of fact I did it while I was doing your friends job over there too at the same time. So I saw every single step along the way and I learned how to do all of it. The other good part about it was I was operating at seventy one percent profit for six months. I had no expenses no expenses we paid we had marketing and that was about it. But we took draws, but I didn't take a salary at the time. So we were just turning away at an incredible profit margin and actually still to this day, use the money that we made that first six months to continue to build our rental portfolio. So it was a great lesson I think had I hired someone sooner I. Probably could have scaled even more because month nine when I hired Caroline my office manager who is a Godsend she completely organized my life and my in my office and Then, I could really start to focus on other things. So let's talk about the struggle zillow printer because a lot of people listening to this show you know they're they're still working by themselves, and one of the greatest challenges I've witnessed Miteir career is you gotta deals. And, the fires fires, prospecting stops. So you go to this rollercoaster. Definitely right. Did you go through that? I did Now I will say I didn't have as many fires as most because my title companies incredible I mean we can send them Apollo crap and we get closing in thirty days unless so that could be like you know if your title companies go, you're going to have your title challenges but you're GonNa have buyers that aren't performing sure hard money lenders change of heart or I won't fund until I get to walk through the House. You these hard money lenders like where do you come up with idea that you can walk through your house, right right? Yeah. We still deal with that today. Yeah. So there are these other challenges of the fires and what happens when you're when you're a solo preneurs, I can't have this die I I need I need to close. And so because I need this close I saw prospecting and then you have other problem in four to six weeks. Sure. So how did you yeah and I would say I wasn't newer. Was I knew wholesaling yes. But not new at a business and not newer to the mental strength it's required to be able to deal with the ups and downs so for me. I knew the first six months to a year we're going to be held. It was going to be a grind I was ready for it, and of course, there were ups and downs you know deals fell apart but if you just keep filling your pipeline enough, you eventually get to a point where you're not living and dying with each deal and so there's a little more balanced. But of course, still struggling along the way for sure. Yeah. So we're kind of hours working. I think. It'd be easier to quantify what hours I wasn't working but yeah, I mean. I. So I really riser since January of twenty seventeen So four do my thing in the morning and then. Hang out family until nine, and then from nine until my kids come home around five, five thirty. Doing my thing in the office. and. Then kids were going to bed at seven back then and then I'd work from seven to eleven. So that was my life for. almost about two years. So twenty eighteen, you still have pretty good balance. No No. No..

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