Epic Real Estate Investing - Corey Kendig Reveals the Details of How He Closed 3 Deals Over the Holidays | Episode 143

Episode Date: February 2, 2015

Today Matt welcomes back Epic Pro Academy member and inner coaching client, Corey Kendig.  Learn how landed 3 deals over the holidays by getting back to the basics and planning his investing strategy in November!  Did I mention he balances investing with a full-time job?  If you’re in need of some motivation, today’s episode can’t be missed.  Enjoy! ------- The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E ducation P roperties I ncome C oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. And welcome. Welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. And the first step, the very first step that you can take is shifting your focus from

making piles of money to creating streams of money. That's it. That's the secret right there. There's your key to the kingdom. Now, I've got a great show for you today. A little play-by-play from an Epic Pro Academy member as well. He is also an inner circle coaching client on what he did and how he did it to close three deals during the holidays.

And I just never get tired of hearing stories from the trenches. And I think there's no greater value that I can bring to you than stories. like this. And here's why. You see, there are only two reasons people will give up in real estate or never even try to get involved in real estate is one, they just don't believe real estate works. And or two, they don't believe that they themselves will work. You see, I know once I've gotten you over those two humps, once you truly believe that real estate works, and once you truly believe that you will work, in other words, you believe that you can do it, there's nothing else that will get in your way. The sky is the limit for you once your belief is in place. So stories like the one you'll hear

today, I share it with you to help you with those two core beliefs. I really believe that's the center of whether you succeed or not. It is in your beliefs. You know, and those two core beliefs being that real estate works, the belief that real estate works, and the belief that you can do it. And I try to keep the celebrity gurus here to a very minimum because I want you to hear the real story, the real stories with no hidden agenda, nothing to sell, nothing to promote, just this is how I did it. So I do my best to introduce you to everyday people. Many are my coaching clients, many are Epic Pro Academy members, and some are neither.

And by continuing to share these stories with you, eventually, if you're not there already, your belief will reach a point where a herd of horses could not pull you away from your real estate investing business because your belief is that strong. And everything you aspire to will be yours because your belief is in place. Now, grow and grow rich in Laguna Beach is just a couple of weeks away, February 11th. If you haven't done so, and if this is a convenient location for you, Laguna Beach, California, California, go register. Go do that right now and reserve your seat at grub and grow rich.com. My team and I would love to make your acquaintance and have a good time.

That's what this event is about. It's all you can eat, all you can drink, and all the real estate questions you can ask. That's February 11th in Laguna Beach, California. Go to grub and grow rich.com and you'll see all the events that we have on the calendar. In March, we're coming to Indiana. So we're leaving California. So this is your last chance for California for a while. we're going to Indiana for not only a Grub and Grow Rich event, but also a property tour as well.

And then in April, I'm really excited about this. We're going to Texas. Yep, we're going to hit Dallas. We're going to hit San Antonio. And if we can fit it in, we're going to hit Houston also. And I'm working on it. I'm working on the team. I'm working on the schedule.

It's going to be a Thursday, Friday, Saturday type thing one day in each city. And so be prepared. Indianapolis, we're coming your way. Then we're going to Texas. And then I believe the month after that we're hit. headed to Florida, couple markets in Florida. So all the details are at grub and grow rich.com. If you're in California, Southern California,

this is your last chance for a grub and grow rich event in California for a while. All righty. So I'll be back with our featured guest in 30 seconds right after this. Sales pitch? Sales pitch? We don't need no stinking sales pitch. Here's the ball busting truth. You can make excuses or you can make money, but you can't do both.

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Free epicbook.com. On the phone, I have Epic Pro Academy member and Inner Circle coaching client, Mr. Corey Kendig. Corey, welcome to Epic Real Estate investing. Hey, thanks, Matt. Good to hear from you, man. Yeah, I guess it's actually welcome back. I guess it would be Yeah you were on the show

A long time ago I think that was like when we were an episode Of like 150 episodes ago Yeah man You should have me out for like a throwback Thursday I think it was Somewhere in the 50s Episode 52 or 54

Yeah way back then We're like on a 200th episode now So there you go Well Cool so You've been a member of the academy The whole time And you just joined

The Epic Inner Circle coaching So I get to work with you one-on-one for the next 12 months, and that's been very exciting so far. And we just checked in right after the holidays, and depending on when you're listening to this, it might be a little later. The holidays might seem far in the distant. But, yeah, things are going really, really well for you. And I know you closed three deals basically over the holidays. So let's talk about that. How did you take us from the beginning?

How did you have those happen? Sure, man. Do you want to go property about property? Let's just talk about, let's like get in your mind. We'll talk about deal number one, deal number two, and deal number three. Okay. Do you have those separated in your mind right now? Got them separated.

Cool. All right. So deal, it's like three interviews and one. It's going to be great. Deal number one, how did you find that deal? Deal number one, that was word of mouth. Word of mouth. It was basically through network.

And, you know, one thing I've kind of always said is, and when you start out, you don't realize the snowball you can create. But just by telling every person that you do business with or somebody that you're surrounded with what you do, it will multiply like crazy. And it was literally somebody I had either done business with before or an associate of mine, and they had called and said, hey, you know, so-and-so had sold their property to you. and would you be interested in checking out our situation? And what it was was the guy actually, his mother had gone into an old folks home and basically left this property for her son. And after deciding that he didn't want to be a Home Depot professional

and doing a lot of, you know, do-it-yourself projects on the house, he decided that he was just going to cut his losses. And he was also, they're in a, interesting situation because they're facing a lot of debt with the old folks home. And he was ever dealt with that. But basically, he was obviously in a motivated situation. Right.

Very straightforward guy. I just wanted to kind of cut his losses and allowed him to do that. Super. So word of mouth. So that's a good lesson right there. And we've talked about that a lot here that don't keep what you do as a secret. Talk about your successes. And you continue to do that.

And it came back to you. So congratulations. Yeah, yeah, absolutely. Super. So deal number two, how did you find that one? So deal number two was actually, you're going to laugh at this, it was my first for sale by owner that has actually worked. And over the past, it's been three years of doing this.

It's called, I don't know how many hundreds of for sale by owners and always, you know, the goal is either, you know, try to get something on your price or, you know, your terms. So always calling for sale by owners. And this one, I could tell when I called, it was a different situation. He had some motivation and did something a little different. I actually could tell, I kind of hit it off right off the bat with him, started developing rapport, started joking around. And I was on my lunch break for work.

And I actually was like, hey, you know, you want to meet up? and go grab a bite to eat close by. And, you know, he was an older gentleman, and typically, you know, not being stereotypical here, but sometimes older people like to do business in person as opposed to the phone. So I sat down, bought the guy once we started talking. The property was in an area that, yeah, a good, good area, awesome brick house. Pretty neat. Actually, at a storefront on the side of it as well.

connected to the four-bedroom house and, you know, easily worth 60, 65,000. And he had said, you know, that he wanted to get 40K out of it. He was sick of, he had rented to some people and they trashed it before. He had some health issues and, you know, he basically said, you know, I want to just enjoy the rest of my years. And we couldn't come to a cash agreement that worked. I mean, typically if I buy things for cash, I definitely want to get it on my price, and it's a steep discount.

So he didn't like my steep discount so much, but he owned the property outright. So I made them some terms and, you know, terms that I've learned on this exact podcast probably a year and a half, maybe two years ago now, and made some terms that put me in an off and cash flow situation, allowed him to get a total of $30K for the property. And I put $6,500 down and just made him monthly payments, principal only. And he was more than happy with that. So I think his first payment goes out on February, February 15th, and I've already rented the property for $8.50 a month.

I actually rented to somebody that offered to do the work if I gave him a discounted rent. So it worked out well. It's okay because I was thinking way too much money into another rehab. So it worked out well. That's funny. You have like 17 strategies all wrapped up in one deal. I like it. I like it.

Let me ask you about the for sale by owners. You've been calling for two, three years. What has it that you continue to call them? In anything, I mean, I'm sure along those lines, I can't recall all of them, but there were some close ones. I mean, there was ones that, you know, for better or worse, they got away. and maybe it was my pitch to them or maybe it was their situation. But, you know, you start to notice that, you know, what you're doing and what's going to give you results.

So, you know, it's a numbers game. The more you call, the more you're going to make money. Say that again. Cool. So deal number three, how did you get that deal? So deal number three was pretty neat. as well. I would say I would classify as getting it through your network. It actually was a bank foreclosure. So I had been doing a little bit of networking with a lady that worked at this bank

a while back, typically in the fall. And where I live, it snows pretty heavily. So you got to kind of play into the fact that banks really don't want to hold a property in general, but they really don't want to hold a property when you have toilet's freezing and pipes bursting, and it's negative five degrees. Right. So, you know, you just play into that motivation. And that's kind of what I did there. It's funny because I bought the property.

I got the property at, yeah, that we just talked about, deal number two. And at the same time, I had been emailing back and forth with this lady from the bank. And she'd given me the address for this property that they had, that was the four. foreclosure and she sent me the lockbox and I was emailing her back as I was walking out at the property that were sale by owner and I looked looked over and she you know it was on the same street so I was like you know what that the number doesn't seem too far away from here and I looked over and it was like five houses down the street so I walked over looked at the property and you know it kind of fit my criteria is a three-bed one bath just cosmetic fixing

and put a couple lowball offers in that they didn't like so much, and eventually found one that worked for both of us, and that'll just be a cash purchase that actually closed next Monday. Super, super. Okay, so let's go back to deal number one. You got this deal word of mouth, and what did you get it under contract for? Deal number one, that was 15K.

15K. And what are you doing with that deal? Are you reselling it? Becoming a rehabber, Matt. You're going to rehab this one. Okay. I'm not doing a full rehab, but I'm going to call it a rent-ready rehab. So it's kind of interesting with this property because it's in a very nice neighborhood.

your average three-bed one bath is selling for right around 90K. So, you know, I knew right off the bat that it needed some work, it needed some structural work, some stuff a little more serious. So I am rehabbing that one. Got it, got it. Super. Then you're going to sell it retail or are you going to hold on to it? You know, I'm addicted to the cash flow, man.

So I'm going to hold on to her for a little bit. And I'll rent it out. My end goal is I'm laying the foundation, not actual, but figuratively speaking. Well, I guess I am because there's some serious... Foundation problems. There's a couple issues going on. But, yeah, I'm going to rent it out, and then eventually either probably do like a lease option or maybe just sell it outright retail for a nice spread.

That would be a great spread, wouldn't it? It will be not a really good one. Cool. So the deal number two, you've got this undercut, you bought it for 30K or you gave him 30K? The total purchase price was 30K. I had given him a down payment. So you gave him a down payment to 65. Mm-hmm.

And then you have principal-only payments on the balance. Correct. How long? How many payments? I want to say it was 12. I broke it into 12 years. So that's 144 payment. I think they come out to like 160 something a month.

That's a cash flowing beast. Absolutely. At 8.50 a month. Sweet, dude. I'm glad you said that because when I talk about principal-only payments, people are like, no one's going to take that. Who would take that, right? Mm-hmm.

And all you have to do is you have to offer it. That's all you have to do. Honestly, man, I would have never thought anyone would take him either. and I'm listening to your podcast back when just barely starting out it was what kind of gave me the confidence to start offering it and you know there's some people that hear it and absolutely not I mean they they're not even the least bit interested but there's other people that don't even bat an eye to them that is they're so focused sometimes on what price they want

that it doesn't matter the terms don't matter right Got it. And then you're on deal number three. What did you get that under contract for? Deal number three, that is purchase price at 13K. And I think the bank was kind of mad that I beat them up on the price a little bit. So they came back and said that I had to pay all the closing costs, and they wanted to net 13K.

So I figured I'd pay their 1% transfer tax and volaneous fees to keep them happy. Got it. Okay, so you've got, you said it's minor fixing up and to do on that one. Yeah, it's probably like a $6,000 rehab. Yeah, to get to where it needs to be. Got it. And then so you're going to have basically 20 and we'll say. And what's fair market value after that?

Yeah, for a quick cash sale, $40K all day. But ideally I think I'm going to either rent it out or maybe do like a, a lease option as well. Got it. You are an investor after my own heart, dude. I love that you're holding onto these deals. You can't get out of that day job, man, if you don't have that cash flow. That's right.

So this is three, just in one month that you're probably going to have some, three more that you're going to add. How many will that make now that you own cash flowing properties? That will make... 16. Fantastic. So that's going to put you probably over about $4,000 a month then, right? Yeah, just about

At least, really Just about Yeah Just the darn near that deal number two We'll do that So sweet It's going to get you very close

Yeah, starting to feel it man Totally I guess the fruits of your labor As they say Super So our goal this year is to add 12 grand more to your existing Cash flow

And one grand down And we're not even done With January yet So that's awesome One G down. I was listening to this guy, and he said, if you're going to start planning for your business, he got a plan in November.

And honestly, I probably would have, I would have been sitting here in January. Not that I wouldn't have got real fired up about, you know, kicking 2015 in the butt myself. But I think I owe a lot of it, too, getting back to the basics, and then hitting November pretty hard with a plan and carrying that plan out in December.

that by the time everyone was going around with their New Year's resolutions at the gym, I felt like I had already changed quite a bit about how I do my business. That's awesome. That's awesome, do you. Thanks, man. Yeah, you bet. I'm proud. This is cool. Bring a tear to your eyes. Yeah, totally. No, it's more of just, I just like to see people. I hear so much negativity all the time, and I hear so much whining and moaning and it

can't be done and ooh that's risky that's dangerous i just hear that all the time and and i you know i don't like to reiterate it too much on the show but you know when you get someone that just goes out and does it and it works it's like there's no magic there's no secret sauce i mean i don't know did you have any magic involved here no magic uh very very few rabbits came out of a hat a lot of a lot of phone calls man um i mean i'm i'm no different than probably not 90% of people listening. You know, I have a full-time job that I'm definitely needed at during the week, and it can be very high stress.

And at the same time, I have all the temptations of having fun and doing other things in my life. But you just decide how bad you want it and just work the numbers. I mean, once you break the numbers down what you have to do, you can hold yourself pretty accountable. Right. So you do have a full-time job. What is your day-to-day real estate investing activity? look like?

So day to day, I'm not going to lie, I mean, being the kind of solar solopreneur at this point, I do, you know, I spend time doing a lot of the admin stuff and constantly emailing back and forth with people, whether it's, you know, deals and setting up closings and things like that. So, you know, I'll take today, for example, some days I'm fortunate enough to work from home. I have a pretty cool position, but I, you know, I'm pretty high on integrity. So, you know, the eight to five hours I do dedicate to the business that, you know, pays me a salary. So I get my job done and I do, I feel an excellent job for them.

But as soon as, you know, I have that break, I have that lunch break that doesn't keep me from making some offers off for sale by owners. I'm not going to lie. Right. So, you know, during the day, basically after work, returning phone calls of, you know, obviously any motivated seller and trying to follow up. And I've got the point now. I've put some of my marketing on autopilot. So that has definitely started to bring in more leads than I really anticipated. So I've been on the phone a lot.

And I think that's kind of my next step is to outsource a little bit of that lead filtering. Right. You know what I mean? Cool. So, or anything, just spending most of the time on the phone. I mean, that's where most of the money is made. Cool. So let's focus on that just real quick and I'll let you go.

What are you doing to make your phone ring so much? I am doing direct mail. So, you know, your absentee owner lives. Also, it sounds cliche, but just. just telling people what you do. Do not discount that for a second. Building your network, going to REI meetings, a permanent association meetings,

shaking hands with people out there. Totally. And basically, other than that, we definitely dabble in some bandits fun. And any guerrilla marketing tactics you can get out there, you know, putting the business cards and the gas tank. slots at the pump station and doing all sorts of things. Good. Sweet. A little bit of everything. I love it.

Well, cool, Corey. Thanks for taking time out of your day real quick to come and share that with us. Glad you had me on, man. Appreciate it. I know one of the big turning points for me in my whole business was when just someone, I just got evidence. I saw someone that I knew and that I interacted with and I was like, wow, this stuff is really possible. So I like to share what is many of these stories as possible on the show just to let people know that just eat everyday regular people. Corey, you're only 24 years old, right? Yeah, just turned 24. Just turn 24. And you got a full time job? Yeah, bought my first rental when I was a sophomore in college and didn't know what the

hell I was getting myself into. And it's turned up very well. But exactly like you said, I I have to owe a lot of my original interest in real estate to a guy who's a great friend of mine now and also mentor. But just a local guy in my area that I rode dirt bikes with him and started asking this guy what he did. And he was 28 at the time. And he gave me this real estate spiel. And I said, you know, oh, sure, sure. And I started to follow him around and realize he actually did real estate. And, you know, it's not realizing that he was no different than me, you know.

He came from a very humble background, didn't have a, you know, silver platter laid out for him and made his own fortune. So really, anybody can do it, man. There's nothing stopping you. If you got a phone and with the Internet today, I mean, there's no, there's no excuse. Google will answer anything you needed to. I love it. Super. All right, but I'll let you go.

and I'll be talking to you soon in our next call. Sounds good, man. Later. That's it for today. I'm Matt Terrio, living the dream. Attention, attention. Shocking website reveals that shocking websites aren't really that shocking. All kidding aside, go to find motivated sellers ASAP.com to get the inside scoop on how the nation's most successful real estate investors really find their deeply discounted properties.

Go to find motivated sellers ASAP.com. Deeper discounts. Less secrets. Find motivated sellers ASAP.com. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening.

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