If you’re not good at putting certain pieces together, find someone who is. A partner or a vendor like Carrot. Nobody is good at everything.
– Adam Mitchell
The “Hidden Door” Deal w/ Adam Mitchell & Lance Doty
Read the Full Show Notes Below…
In this episode of Behind the Deal, we are back with Adam Mitchell and Lance Doty to go behind the scene of one of their most recent transactions. You’ll learn how to find cash buyers, how to host the perfect real estate meetup, and how to make cash offers with complete transparency while turning a healthy profit.
The Deal
This particular deal involved a mobile home on a piece of land in a popular area. The lead came in via SEO and was a young woman who was helping out her grandparents. They had been living in a run-down mobile home that the neighbors were eager to see gone. Lance and Adam were able to…
Help the seller pay off what was owed
Help the buyer find an ideal piece of land
Help a contractor who needed the mobile home
And still turn a great profit on a deal where everyone came out ahead
Finding Cash Buyers
One thing a lot of our listeners ask is how to find cash buyers. So much of our marketing is dedicated to finding sellers – it’s important to have a way to sell properties once you have them under contract. Adam and Lance find buyers by…
Searching the top real estate Facebook forums in their market
Getting deals in the door – this will always help to generate new leads
Utilizing SEO and a dedicated Carrot site to find cash buyers
Hosting Meet-Ups
Through networking, both online and in-person, Lance and Adam have been able to grow their buyer list to over 600 people.
The Perfect Real Estate Meet-Up
Most people attend a Meet-Up expecting a pitch. These gatherings usually have a catch, with something being sold at the end. Adam and Lance look at things a bit differently. They are there to share what they know, to network with the community, and to learn. While it has been a great way to find cash buyers, it has also been a great way for them to build credibility in their community. Another great thing they do is to host the Meet-Ups at properties they have under contract. Instead of a bar or restaurant, people can come and see a house mid-construction and when it’s finished!
Making Transparent Offers
So many investors walk into a house, acting as if they will be using their own funds to close when it simply isn’t the case. If you are unable to find a buyer, you will have to cancel the contract, waste the seller’s time, and worry about tarnishing your reputation. When Adam and Lance are wholesaling deals, they are very transparent with their sellers. They let them know that they will use the option period to get a buyer in the door, and once that’s done, they will close. We’ll have more on the ethics of wholesaling coming up in the not-so-distant future – so watch your inbox!
Tips That Actually Work: SEO Grader
Our SEO Grader tool will give you a high-level view to ensure you are doing the right things for SEO. It isn’t overly complicated – it will help you improve your social previews, title tags, and meta description. Be sure to take a look at this great tool when creating any content for your Carrot site!
SEO is the type of marketing that gets cheaper over time.
– Andy Kolodgie
60 Leads Per Month. All from SEO & Carrot w/ Andy Kolodgie
From a full-time software engineer for the Navy to a full-time real estate investor, Andy Kolodgie has found his place as a “real estate marketer.” In just over a year, he’s figured out how to use SEO to generate 60 motivated seller leads per month, while providing a simple and hassle-free selling experience. Today, you’re going to get a glimpse into how he does it, so you can do it too.
Read the Full Show Notes Below…
Hitting the Ground Running
Andy started his business right around the beginning of COVID. He was looking for time and location freedom and knew that one of the best ways to do this is with real estate. Cold calling and direct mail just wasn’t Andy’s style. With his background in engineering for the US Navy, he wanted to utilize his skill set, honing in on the data and how we could make it work for his business. Since starting his business, Andy has been able to generate 60+ leads per month, all from honing in on his SEO.
Landing Pages
Andy has taken a slightly different approach to his landing pages than many of our other clients. As he is searching for motivated seller leads, he has chosen not to niche down, and instead focus on landing pages that target his state. This helps to capture all of the leads who are just on the outskirts of town or who may not be searching with the city name. A great strategy is to create a robust landing page for your state, that includes information on the cities in which you are buying.
Content Quality vs Quantity
Many people believe that they have to be writing blogs every day to improve SEO, but this simply isn’t the case. Andy has found that an abundance of informational content wasn’t attracting the sellers he was looking for. By reducing his posting frequency and focusing on the content that was of the most value to people, Andy was able to trim the fat and score more leads.
Avoiding Bad Backlinks
Backlinks can have a positive effect on your SEO, but should always be done in the right way. Many people will try to take the easy way out, buying links that may not be valid or beneficial. Google sees this and will in turn lower your credibility and ranking. You could be flagged and all of the work you put in could be lost. Instead, utilize methods like HARO backlinks to generate legitimate, trustworthy domain authority that will build your credibility. If you’re a Carrot member, you can also check out our backlink-building service in the marketplace.
Creating a “Content Pillar”
Let’s say many of your leads come from probate situations. We recommend creating a piece of pillar content around this that is several thousand words. Under this article, you can have shorter posts that a related to your topic. We recommend having 4-5 content pillars for your business.
Andy is helping other investors take advantage of the data in their markets! Reach out to him at thehouseguys@thehouseguysdc.com or at 202-570-4651 to find out what he can do for your business!
Be a man or woman of integrity, both with yourself and others. Not only will this build confidence, but it will allow you to hit bigger and bigger goals because you have a track record of following through.
– Greg Helbeck
The Analytics, Data, and Numbers You Should Be Tracking to Gain Consistency in Your Business w/ Greg Helbeck
In the first episode with Greg Helbeck we talked about negotiations, raising margins, and the questions he always asks his leads when talking about their property.
A lot of his deals are done remotely, which makes it even more important that he stays on top of his analytics. Today we will be diving into what you should be tracking, how you should be tracking it, and who you should be comparing yourself to. (Hint: it’s not other people.)
Read the Full Show Notes Below…
Greg lives in San Diego but does most of his deals in his home state of New York. As such, he relies on the data to tell him what’s working. Just showing up each day and being productive isn’t enough. You need to know what’s working, what’s not, and more importantly why.
This will allow you to pinpoint where you need to step-up or step-back
Metrics = Freedom
For many entrepreneurs, taking action isn’t a problem. They thrive on the hustle and have the motivation to work long hours day in and day out. The thing is – maybe they don’t have to.
When Greg started his business, he was putting out signs, knocking on doors, doing Craigslist ads, handwriting letters, and everything else new investors do when they are looking for those first few deals.
What he didn’t realize is while he felt like he was being productive in his goals, what he was doing was actually pushing them further away from them. He wasn’t tracking what he did, when he did it, or what the results were. He was throwing out a net and hoping for the best.
While his persistence helped him find his initial success in real estate, if he had been tracking, he would have been able to accomplish more, while spending less time and money in the process.
What to Track
When Greg realized he was in the direct marketing business and not the real estate business he had his lightbulb moment. He knew he needed to better gauge his efforts so he could grow his business and find better uses for his time. Greg began tracking his metrics strategically.
Income – Are you really making money? The first thing to do is make sure your books are in order so you know exactly where you’re starting. This will help you to forecast and set the goals to help you get to where you want to be.
Leads – Take a look at your leads about once a week. Where are they coming from? Who are they? How can you help them?
Offers – How many offers are you making each week? Who are they for?
Deals – How many of your offers are actually turning into closed deals?
Revenue – How much are you making per deal and what could be done to improve your margins on the next one?
Once a week Greg will sit down for about 20 minutes to review his numbers. On a monthly basis, he will spend an hour or so to take a more in-depth look to make sure things are staying on track.
Putting it All Together
When Greg is tracking these analytics in his business, he will look at his past performance to forecast the future. If his business isn’t performing how he would like, he can look at the numbers to see where he can improve.
While building Carrot I have learned that you don’t need to track each and everything, rather focus on the 3-7 KPIs that really matter. If we aren’t hitting our numbers, it’s not the end of the world, but at least we will be able to determine where we need to improve.
Playing the Long Game
Keeping track of your numbers doesn’t need to be a long or intimidating process. A simple spreadsheet can help you quickly compare trends from one week to the next. You’ll be able to forecast and predict your outcomes and if something isn’t lining up, you’ll be able to respond accordingly.
When you are first starting out, it can be easy to become discouraged by low numbers. It’s important to remember that in many cases, the efforts you are putting in now, will be rewarded not today, but a couple of months down the road.
PPC, SEO, and direct mail campaigns all take time to build momentum too.
Stay the course and always lead with math over emotion.
Setting Your Benchmarks
As Simon Sinek says in his book, The Infinite Game, we are in this for the long haul. There is no end or defined players. Businesses change all of the time and the bell isn’t going to sound for things to stop.
When setting your goals and benchmarks, it can be so easy to compare yourself to what others in your field are doing.
Social media can give the appearance of “success” but you never know what is going on behind the scenes.
To define your goals, all you need to do is try to be a bit better than you were before. It is nice to set targets, but as you grow your business it’s ok to take some of the pressure off and just enjoy the ride.
In order to make your goals a reality, you need the right mindset. Heading into 2022 I want to help you have your best year yet so that means getting into gear now – it’s time to walk you through how to gain momentum in the New Year and focus on what matters most by making some adjustments for success.
Keep reading this post if you fall into one of these…
Keep chasing the next goal or achievement but find it never brings lasting joy or fulfillment… and you know there’s got to be more to life
You’ve already achieved your “someday goals” you set years ago… but still not as happy and fulfilled as you thought you’d be
OR… you feel like you’re working your butt off but not getting closer to your ultimate goals (or your goals keep shifting)
Every year you have the same goals you set, then re-set… and have thought “Maybe I should aim lower” or “Maybe it’s just too hard for me”
You want a better system for setting and achieving goals that sets you up for success in the new year
You dip into “Entrepreneurs Funk” but don’t know how to get out
You’ve been grinding for months (maybe years) and things just don’t seem to be breaking through for you…
Start each day feeling overwhelmed at everything you have to do and the little time you have to do it
You keep hitting up against a wall and can’t crack through to reach your Vision for “success” and are getting discouraged…
You want to find ways to create more happiness and joy in life and business
My Process For 2022 Planning to Achieve Laser-Focused Results
My 5 biggest learnings/mindset shifts of 2021
Gap vs. Gain
The Work IS The Reward
Don’t run from the problem, grow into the solution
Creating Magical Moments / Life Resume (thanks Jesse!)
Thinking In Longer Time Horizons
3 Key Resources In Our Lives (and how to protect them in 2022) Planning An Epic 2022
My NEW for 2022 Personal Planning Template + My 1 Page Business Plan (Watch the replay for in-depth information)
The G.R.O.W. model to transform your planning
Part 1 – My 5 biggest learnings and mindset shifts of 2021
1) The Gap vs. The Gain
“When you’re in the gap, despite growing success… happiness and security will never be yours because the GAP mindset eventually stops growth altogether”
The Gap vs. The Gain
Most people, especially highly ambitious people, are unhappy because of how they measure their progress. We all have an “ideal,” a moving target that is always out of reach. When we measure ourselves against that ideal, we’re in “the GAP.” However, when we measure ourselves against our previous selves, we’re in “the GAIN.”
2 things are needed to create a healthy gap…
A clear vision for where you’d love to go
Clarity on where you are now
The GAP and the GAIN concept was developed by legendary entrepreneur coach Dan Sullivan and is based on his work with tens of thousands of successful entrepreneurs. Dan’s coaching clients periodically took stock of their accomplishments both personally and professionally, they are often shocked at how much they actually achieved. They weren’t able to appreciate their progress because no matter how much they were getting done, they were usually measuring themselves against their ideals or goals.
In his book, “The Gap and The Gain: The High Achievers’ Guide to Happiness, Confidence, and Success“, you learn that measuring your current self vs. your former self has enormous psychological benefits. That’s really the key to this deceptively simple yet multi-layered concept that will have you feeling good, feeling grateful, and feeling like you are making progress even when times are tough. Which will in turn bolster your motivation, confidence, and future success.
If you’re finding that happiness eludes you no matter how much you’ve achieved, then learning this easy mindset shift will set you on a life-changing path to greater fulfillment and success.
2) The Work IS The Reward
Life is work. But not just life… really living life.
Growth is work. Change is work.
Anything worth having or doing takes work. And it takes lots of it.
Simply existing takes little work. It carries with it a meaningless and miserable feeling.
If you’re not willing to work, then you’re either lost in illusion, you’re lazy, or you just don’t get it.
Joy and fulfillment come from action. Neither exists without it.
Get to work!
3) Don’t Run From The Problem, Grow Into The Solution
The reason you may not have the business of your dreams today is that you’re not capable of running it right now.
The “Rule of 3 and 10”
“Everything breaks at multiples of 3 and powers of 10”
Decision making
Marketing
Sales
Benefits
How you schedule meetings
Business systems
Accounting
Payroll
Infrastructure
Leadership structure
4) Create More Magical Moments
“Perfect moments more often make time stretch out and the years become more fruitful. Time slows down, senses arouse, everything in those moments is just right. These moments are what make life sweet. Busyness makes having perfect moments hard. Examples, a shared glance, letters to loved ones, phone calls, walks in the park, fabulous meals, and intimate conversations.”
Let’s show this visually…
This is human life in 90 years:
And, a 90-Year Life in Months:
And, in weeks. How are you going to choose to spend your time?
… Are you using your time wisely?
5) Think In Longer Time Horizons
How Much Of Your Schedule Reflects 6+ Month Out Strategy/Vision Time?
My 3 Promises To You: 1) Gain insight into the biggest mindset shifts I made in 2021 2) Get full access to our updated planning templates 3) Craft a CLEAR 2022 strategic plan from start to finish…
Part 2 – Key Resources + Creating Your Plan
3 Key Resources In Our Lives
The common mistakes we often make
We seek “new”, can then look to start new things / innovate outside of the primary business that got us where we are
Continually optimize for $ metrics, but rarely optimize for energy, freedom, or impact… which causes burn out
We think “I’m a starter, I don’t like running things” (which may be true) and think the best way out of this job we don’t like anymore is by creating a new one (vs. reinventing our existing one)
We think too short-term to keep the business operating in the day to day, but rarely pull up to think long-term
We aren’t clear on our vision… so we run out of runway
About every 4-6 months I hit a wall… I’ll often find myself thinking stuff like…
Next, start thinking about this “how do I define success?” Is it a career that exceeds expectations, lots of money, or bigger toys? Or, is it an abundance of family time, getting into shape and health, or relaxing and enjoying life?
There are five essential elements to include in your planning to be a complete success. You can certainly be successful in one or more areas, but strive to have high scores on all six to be a complete success. Try this little test…
Take This Quick Test of the 7 “F’s”. Write Down a Score of 1 – 5 (5 Being You’re Crushing It)
Fitness ____
Family ____
Friends ____
Financial ____
Faith ____
Fun ____
Learning ____
So how do these seven F’s play into becoming a complete success? As we set goals and strive for success in our lives, our goals should fit into one or more of these areas.
Having goals that will better each of these areas of your life. They will enrich your entire life and help you to achieve the success you desire.
The next obstacle you need to hurdle is how you view urgency.
Starting Your Business Goals For 2022
Everything you “focus” on in2022 takes your mental energyand physical time.
If you start and stop and spread yourself around…
Now, Since We Only HaveOne Go Around… … are you using your time wisely while you have it?
Before you can plan 2022… you have to have a clear vision for what you’re building and why.
Paint an exciting and clear picture… 3 Year Vision Template
Now let’s set goals for 2022
GR: Setting Key Annual Goals
O: What are the best Options to hit the goals?
W: What Will You Do In 2022? Creating Your Macro Plan
W: List Out Your Quarterly Initiatives
My “Planning Stack”
Each Year… review your 3+ year vision. Are you on track? Still clear? Still exciting? What’s important for the next year?
Each Quarter… review your annual plan and create your plan for the quarter
Each Month… review your quarterly objectives and goals/scorecards for your monthly plan
Each Week… review your monthly plan, scorecards, and craft your “top 5 commitments”
Each Day… review your top 5 weekly commits and craft your focus for the day
In recap…
Focus on buying back your time while the energy and health is still there
Don’t fall into the “if I hit this goal then I’ll [insert desire]” trap… the work IS THE REWARD.
Think on longer time horizons and get clarity on your vision 3 years out
Create “gaps” personally and in business but measure yourself on your progress / gain (this creates fulfillment and joy)
Create magical moments more often and more intently, they extend the life in the years we live
Broke people live rich and rich people live broke.
– Kris Haskins
Section 8 for Real Estate Investors – Here’s What You Need to Know
Many people hear about section 8 properties and immediately run the other way. It is not on their radar. But for Kris Haskins, these underserved communities have brought more than just a check. They have brought fulfillment in knowing he is stepping in and helping to change people’s lives.
On today’s episode of the CarrotCast, Kris will be showing us how section 8 for real estate can be a highly-profitable, overlooked income stream for investors. He aims to help others raise their financial literacy through real estate and entrepreneurship.
Read the Full Show Notes Below…
Kris Haskins has done it all. He worked in the music business for several years, experiencing all of the highs and lows of the industry. Part of the reason he is so passionate about section 8 for real estate is that he knows what it’s like to struggle with housing inequality.
Not only have section 8 properties provided him with a profitable and low-maintenance portfolio, but they have also provided him with incredible tenants, experiences, and friendships. Here’s a look at how Kris incorporates section 8 for real estate into his portfolio and why you should too.
Serving the Underserved
At one point, Kris was on top of the world. But like many people who have money, he didn’t know how to manage it. After losing everything, Kris realized he needed an income stream and a life that was stable. He found his niche in section 8 for real estate, providing tenants with dignity, respect, and a quality place to live. For Kris, his section 8 tenants have proven to be more reliable, honest, and drama-free.
He highly recommends section 8 for real estate over conventional tenants. Today Kris has about 20 rentals, with 30% of those dedicated to section 8 housing. His other properties are lease-option, which means that no matter what the market does, Kris is able to count on a stable source of income.
Section 8 for Real Estate – The Pros and Cons
The Pros of Section 8 for Real Estate
You Will Always Get Your Money
The rental market is strong and affordable housing is in high demand. Filling your section 8 properties won’t be a problem. Plus, if your tenant should lose their job, the government will step in and cover the rent. You will be able to count on a steady check each month no matter the situation your tenant is in.
Your Tenants are Happy
As a landlord, when you step in with a positive attitude and respectful demeanor, your property will be a place people want to live. Many of these tenants have lived in unfavorable living conditions. To be in a place in which they feel safe and welcomed will give them a sense of pride, hopefully becoming stable and long-term tenants.
In Kris’s experience, his section 8 tenants have stayed the longest and have caused him the fewest amount of problems. He strives to treat each with dignity, empathy, and respect.
Repairs are Minimal
When the tenants are happy, they will do all they can to keep the peace. Their gratitude in having a high-quality place to call home eliminates the petty calls conventional landlords often deal with. Kris has had tenants handle their own repairs, make improvements, and treat the properties as if they were their own.
You’ll Get Market Rates
When using your property for section 8 for real estate, you will need to go through a “rent reasonableness test.” This will compare 3 similar units in your area, helping to determine a fair rental price. You won’t have to worry about renting at a reduced rate.
The Cons of Section 8 for Real Estate
Passing Inspection
When using section 8 for real estate, your property will be subject to inspection. The process can seem a bit tedious, but this is actually a good thing for new investors. It will force you to check the windows, doors, and locks. It will help you get your property into tip-top shape, which is something you should want to do anyhow.
Vacancy Between Tenants
Kris had a tough time coming up with cons for section 8 properties. The only con he could think of is the loss of income between tenants. That said, if you are providing a great place to live, people won’t want to leave. Your property will be in high demand, so you will be able to find a new tenant right away. The government doesn’t subsidize for the time in between – which is typically very minimal.
Screening Tenants
A big reason why Kris has been so successful with section 8 for real estate is that he has a meticulous process for screening tenants. He will pay them a home visit, ensuring things look like they are in order. The prospective tenants should be able to perform basic cleaning in preparation for your visit. Of course, you can have a bad apple, but the vast majority of Kris’s experiences have been positive ones.
How to Get Started With Section 8 for Real Estate
To get started with section 8 for real estate, you will need to register your property at Affordablehousing.com. You can list a single-family home, a unit within a building, or an entire multi-family property.
Once listed, you can take the property down at your discretion. People are looking for affordable housing of all types, in all sorts of neighborhoods. One-bedrooms, two-bedrooms, single-family houses, or townhomes, you can do it all with section 8 for real estate.
People ask, “How do you convince people to take a low offer on a property?” We don’t. It’s either a cash deal opportunity or a listing.
– Lance Doty
The “Hidden Door” Deal w/ Adam Mitchell & Lance Doty
Adam and Lance are two of the best in the business. Their dedication to transparency, service, and providing sellers with options has allowed them to create a profitable and scalable business.
Today we are going Behind the Deal to learn how Lance and Adam were able to increase a home’s square footage, help a homeowner through a difficult time, and walk away with $80k.
Read the Full Show Notes Below…
Adam and Lance are operating a lead generation business. They have found great success in real estate because they always offer transparent service and refuse to box sellers into one type of solution.
Their focus on inbound leads and hybrid solutions has allowed them to maintain a 1 in 10 close-ratio, with their numbers getting better each year.
Here’s a look at one of their latest deals which resulted in a great profit, a happy seller, and a mysterious room behind a hidden door.
The Deal
Adam and Lance rely on inbound leads to run their business. Facebook ads and SEO are 80% of their business. Their form is set up to provide them with all of the information they need when going into a call.
They know going into this deal exactly what the homeowner was dealing with and what they wanted to get for the home.
Their initial offer was low and after running the numbers they were able to get closer to what the seller wanted. After purchasing the property for $185k, they were able to sell the property for $370.
After their renovation costs, holding costs, and selling costs, they were still able to walk away with a profit of $80k.
The “Hidden Door” & Lessons in Square Footage
After buying the property, they discovered a 12×14 bonus room that was located off of the garage. Because there was no direct access to the house, it was not included in the square footage of the property.
Adam and Lance were able to add a door through the existing laundry room and into this bonus room, thus adding more square footage to the property. While they contemplated turning it into a full-blown mother-in-law suite, the returns just weren’t there.
Being Approachable
One of the most innovative things Adam and Lance incorporate into their marketing is the use of video texts. After Lance meets with a seller or talks with them on the phone, he will send a short video text telling them more about the business and thanking them for their time.
This quick video helps people get to know him while making the business stand out from the rest. It personalizes the experience, which is an effective marketing tactic in any industry.
Winning with the Hybrid model
Listing homes is not what Adam wants to do. However, The Home Buying Guys are dedicated to finding the selling solution that will best benefit the client. By bringing an agent onto their team, they are able to funnel the retail leads and split the commission 50/50.
Fewer leads are wasted and more homeowners are being served. By offering multiple options, Lance and Adam are able to have a greater impact on more people.
Tips That Actually Work: Adding a Bio Block
We are all about transparency and credibility and a great way to convey that is on your About Us page.
The seller needs to know who they are working with. A great feature of your Carrot site is the bio block where prospective buyers and sellers can learn more about you. Add some photos of who you are and what you’re all about.
For Adam and Lance, this means having their faces all over their site, letting people know that they are just two good dudes, doing good work.
Put the right things and people in your ear. If you keep sitting on it without taking action, opportunity is going to pass you by for sure.
– Russ Williams
$420k in 6 Months of Flipping Land with a “Basic” Carrot Site
Buying and selling land is a powerful investment strategy that anyone can do. With little overhead, low competition, and an abundance of leads, creating a land investment business is a popular strategy we are seeing with many of our clients. Russ Williams has worked as a loan officer, flipped properties, and held a portfolio of long-term rentals. However, it has been land that has allowed him to grow and scale his business without any ceiling. Here’s the story of how Russ made $420k investing in land in just 6 months using a basic Carrot website.
Read the Full Show Notes Below…
We don’t often talk about land here at Carrot, however, we should! It’s a great option for those who are new to real estate investment and for those looking to diversify or shift their investment strategy. Land deals are typically pretty simple and do not come with the headaches of contractors, repairs, or tenants.
And the sellers are out there, in fact, it’s the third most popular lead type we receive! Here’s how Russ Williams is building a scalable business and how you can too!
Transitioning to Land
Many investors gloss right over land leads because of their low margins and income potential. This is often a mistake as land can prove to be extremely profitable whether it is developed or resold. Plus, it can be a lot less work. Most transactions can be completed remotely, with buyers never even stepping foot on the land before reselling it again. You will not have to pull permits, hire contractors, or worry about expensive holding costs. For Russ, it was these great perks that made moving from residential investments over to land, an easy choice.
The Marketing
Russ gets leads both on and offline. Direct mail does well in his markets as does simply sticking up a “for sale” sign. His letters will include a contract, making it simple for owners to sell right away. Russ was an early adapter here at Carrot and has had a site with us since 2015. When he transitioned to land in 2018, Russ created a stock Carrot site, with very few modifications. He has created some basic city/state landing pages and made sure to upload testimonials after every deal. Over the next year, he plans to hone in on his PPC and evergreen content.
Options With Land
Land allows for different types of contracts and ways for deals to get done. One of those is an option contract which allows the buyer a specified amount of time to buy the property. For the “skinny” deals, Russ will use an option contract, allowing him 3 or so months to buy the property. During that time, he will market the land in an attempt to find a buyer. He will then use the buyer’s funds to close on the property. This helps Russ to maximize his marketing dollars by making some money off of a property he likely wouldn’t have purchased on his own.
Taking Back Your Time
The ultimate goal of many entrepreneurs isn’t to make all of the money, but rather to buy back your time. With its low maintenance, overhead, and hassles, land can be a simple way to build a career in real estate investment. Its simplicity and scalability have allowed Russ to take two months off each summer to spend time with his family – even though through most of his journey he has been a one-man-show. Now Russ is able to scale his business, expand his team, and dive into new markets. It is this type of freedom that we are all looking for within our businesses – and with land investment, you may be able to find that too.
People don’t want to buy a problem. I am inheriting the problem which is why people will sell low.
– Beau Holis
The “$10k House” Deal with Beau Hollis
Imagine making a flippant offer and having the buyer say “yes!” That’s exactly what happened to Beau Hollis when he offered $10k for an occupied rental property.
In this episode of Behind the Deal, we will learn how Beau got the lead, made the offer, and how he is handling a difficult tenant situation with tact and professionalism.
Read the Full Show Notes Below…
Beau Hollis is an investor, entrepreneur, mentor, and frequent guest here on the Carrot Cast. He is known as “The House Buying Guy” and has seen his fair share of deals – both good and bad. In this episode of Behind the Deal, we talked about dealing with tenants, why people will choose to sell for a low price, and how Beau calculates his risk when buying a property.
The Lead
When the lead came in, they learned that the property was owned by two investment partners who were in the process of liquidating their shared assets.
This was the last property they owned together and were both eager to sell and walk away. The house was a 3/2, in decent shape, with tenants currently occupying the space.
The Offer
As the property was in a part of town that is heavy with rental homes. Beau made the offer of $10k, not thinking they would accept, but rather it would be a starting point. Without any counteroffers, the seller quickly accepted $10k in exchange for a fast closing.
The Catch
Immediately upon closing, Beau reached out to the tenant. There was some misinformation provided about what they were paying, the condition of the property, and who was actually living there. Long story short, the tenant wasn’t going to pay, so Beau immediately began the eviction process with his attorney.
While this process isn’t fun, it will only cost Beau about $1k to remove the tenants, plus the delay in flipping the property.
Why People Sell at a Discount
People sell for less than a property is worth when they are going through something. Maybe a partnership is dissolving, the tenants are trouble, or there are other debts that need to be paid.
While some may say that making a low offer to someone in this situation is unethical, what they don’t understand is that people are paying for a solution to their problem. Maybe there is an eviction, repairs, or another problem they don’t have the time or money to deal with.
In many cases, it can be much easier to pass the problem onto someone else and simply walk away.
Calculating the Risk
For Beau, he has made the decision that $10k is what he can offer for a property in his market and still make a profit. Of course, this number will vary greatly depending on where you are buying. It is through years of experience and knowledge of his local market that Beau has settled on this number. In the case of this house.
He will likely be able to flip it, making about $20k. With a little fixing up, it could be even more.
Tips That Actually Work: Adding Testimonials
We talk about testimonials a lot here at Carrot, which is why we now offer a great feature for our member sites called testimonial blocks. Using this tool makes it easy to add video, photos, and headlines to your testimonials.
You should always include a headline on your testimonials that disarms an objection a seller may have. This will help increase conversions and close more deals.
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“It’s important to realize we can and should have gratitude in all situations. Whether they’re the most difficult situations or the ones worthy of the most praise. We’re not asked to give gratitude for everything, but we have the ability to give gratitude in every situation.” – Eugene O’Kelly
