Epic Real Estate Investing - Crushing an Ultra Competitive Market - Gabe Stockton | 1160

Episode Date: July 31, 2021

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Here's Matt. Hey there, Rockstar. Matt Terrio here from Epic Real Estate, where we show people how to invest in real estate using more of their mind, less of their money, using creative real estate investing strategies with an emphasis on retiring early. And if this is your first time here, really glad that you found us. Welcome.

If you like what you hear, make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family. You're the absolute best for doing that. Really love you for that. Thank you. So in today's show, I've got a great guest for you. We've only been working together, I don't know, maybe a few short months, sort of.

And all I've got to say is, prepared to be inspired. And I've, of course, got the news. I'm going to do something different this week with that. And then a really big week for this week in crypto. And today's sponsor of the show is REI Blackbook. It's everything you need to run your real estate investing business. And if you want to embrace the multi-offer approach and watch your closing rate increased by as much as 287%.

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From coast to coast, Epic investors are doing the most. time for another epic field report. All right. So please help me welcome to the show. Mr. Gabe Stockton. Gabe, welcome to Epic Real Estate Investing. Thanks, Matt. Good to have here. I feel like we should have had this conversation maybe quite a while ago, maybe several years ago, when you first kind of made your way into the epic community and you disappeared for a while and then you came back. Before we get into what you're doing today, what happened? Oh my goodness. So, make it real quick. You know, back in 2011 or 12, we worked together and program was quite a bit different back

then. Still a great program though back then. And I was working like crazy to try to get deals. But I was also working full time. And about three, four months into the program, still hadn't gotten a deal. And I got promoted. And I just decided, you know what? I'm going to just focus on my career.

and it always seems that way. When it started to get hard, it was easier just to kind of go, you know, go back to the career, right? And so I decided just to stay on that for a while. And then in 2018, I got the itch again, and I went to an epic intensive in Boston, which was awesome. And, you know, I really got fired up after that. And then same thing again, got a promotion. And it was just, it took all my time working full time. And so I finally decided earlier this year to just go 100% full time into this.

I was the only way I was going to be able to do it personally. I know some people can do both, but I just couldn't. So yeah, I dropped the hammer pretty much into March and I went full time doing this and haven't looked back. Awesome. So, you know, you made several attempts at this. What problem, I guess, or challenge in your life were you trying to overcome that you that real estate would do. So that's a, yeah, such a good question. So I think that I was searching for

something and I didn't really know what it was, but it was my deepest value. I think everybody's looking for their purpose. And that's kind of, I think that's what it is, is whatever your deepest value is, or at least for me, is freedom. And so I was really searching for that. And I think, obviously our system's not really set up for entrepreneurs, business owners. You know, it's really set up to create employees and corporate, you know, people. And so I was just part of that system for so long that I got comfortable. You're talking like our educational system. Yeah, sorry.

I should have been more. That's okay. Yeah, but exactly. Yeah, just our system in general overall is, right, is created for employees, right, to create employees. And so no one ever showed me or taught me or anything with that. You know, and of course, we all got, you know, I think a lot of us are actually, I've read Rich Dad, Poor Dad and some of the other grates, right, that kind of change our paradigms and things like that.

So I wanted freedom. And I always thought that real estate would provide that and a passive income, you know, would be able to provide that freedom to where I can do whatever I want, however I want, wherever I want, with whoever I want, all that. And on that point, it's interesting because now I have that freedom 100%, not with passive income, but I'm creating enough income now that I can do whatever I want, essentially. And it really quickly occurred to me like, hey, cool, I got all that freedom.

Now what? You know, I could do it all right. I got it this morning. I went surfing. I took my kid to summer school, came home, and I went to the gym. I did a couple of people. Whatever I do during the day, I'm free. And so now it's kind of changing to, it's still my biggest value.

But now I notice that those are like external freedoms. And I want more like internal freedoms, like freedom from fear, freedom from anger, you know, and guilt. Like, you know, just more maybe spiritual or more of like internal freedoms, I guess, is kind of what I'm after now is kind of my new. goal. Sweet. Well, you just answered my next question, so I'm not even going to ask it. What was it? I was going to ask, you know, what would it mean to you if you would have, personally,

if you accomplished that freedom and you're like, well, I already got it. And you kind of what it does mean. So that's good. Thank you. So that threw me off of what I was going to ask next now. I have a script here. And if I get thrown off my script, I'm sorry, man. Bambuzal.

I'm just playing. But you've got to start. in March and here we are on July. So we've just in four months, right? So we've been trying this and starting and restarting for a few years. But here just in four months, can you kind of run down the stats of what you've accomplished so far? Yeah. So, yeah, April or March 29th, I resigned from my corporate position. I was a senior director of construction for a multi-billion dollar company, the biggest, biggest property management company in the nation. And great company, great people, nothing wrong at all.

I just, I needed to do something different. And then from that point on, I just started marketing like crazy. I think the fact that I had had previous exposure to your program and to marketing and to a lot of the, you know, the finer points of what it takes together. get going in this business help me a lot because I've already, I've filled a lot already, obviously, by talking to a lot of the wrong people, by going after people that didn't need to sell, you know, spending a lot of time doing the wrong things. And so, you know, with the added pressure of this is my only way to feed the family, I'm really focused now, right? I have the time.

I have the energy. I have the focus. So I just went all in, you know, And I decided to work with a, I outsource my marketing because I realize how much time that takes. You know, and it's doable. You know, you could do it, even if you are working part or full time and you do it, you could do it on the side. I've done that before. I could do it now. But I don't want to spend all my time doing that. I want to spend my time doing other things and especially finding deals and just doing other things.

the things that I'm better at. So anyway, I outsource my marketing. And so leads come in. I work with the leads. And since I started, I know I'm taking the long way on this answer. But it's my way. But I got a deal under contract about a month and a half in. And so in Matt's program and in the epic program, there's there's a part where we talk about the dip right and so that was for sure my dip like that first month and a half i was working really hard um i still am but i was working really hard um i was feeling the pressure of like this i still had never done an actual like wholesale or any other deal up until this point you know and i've done uh multiple flips um like house hacking right like buying the house with regular financing fixing it up reselling it my wife and i've done a

of those and done really well. But yeah, as far as wholesaling and kind of like the non-commercial type investing, I hadn't done any. So anyway, I did a wholesale deal my first about a month and a half in and like a week later I got another one. And so it was cool. You know, it's really cool to work with the sellers. The people are great. We're still friends. We help them out. It's totally different than what I thought or where you feel like you're stealing the property. before you do a deal, you know, you think that's kind of what's happening, but it's not like that. You're really helping these folks. They need, you know, they're not having a lot of wins. And so, you come in and you save the day, and it's super cool. It's refreshing, you know, and so both those deals,

my first deal went really well. It was a, we picked it up for 400, and then I sold it for 430, so for a $3,000 assignment fee. And I threw Craigslist of all places. I've had buyers list. I was calling buyers. I was doing everything and had all these cash buyers. And then I just put it on Craigslist just to like, you know, why not? Let's get some more.

And I ended up meeting one of the topman scene. Yeah, I had to follow the plan. I did. I went down the list, Matt, the 20 things. I did them all. And so set lists with a realtor. I didn't do that yet. But anyway, I went down on this and I met one of one of my regents,

um, largest cash buyers through a bird dog. This bird dog introduced me to this guy and he's like the coolest guy. And, um, yeah, he snagged it. And, uh, we were, we were like halfway through the process and we found some issues.

And, you know, he pulled me aside. I was like, dude, I need to get this for less. And I, I don't blame them. I'm,

I come from the construction industry. And so the things that we found were, were pretty gnarly. And it was definitely going to be a loss of money. And anyway, so I took a, I took a discount down to 15,000, which still for the amount of work I put in and everything was still just a great, great deal for me. The second deal, wholesale deal was a lot tougher. We had a, I had to switch buyers halfway through the deal. The seller was really, really in a pinch and very emotional.

so I was managing that. So I earned my keep on that one. So that was a $10,000 one. So that was good. I think on both of those, I took the first cash buyer. I didn't take a bunch of offers. And in the future,

when I wholesale, I'll get more offers. Because it kind of put me in a position where we were a week from closing and then a new buyer came in and under the first buyer. And they, pinch me pretty hard to drop the price. And so I was like, I felt like the only way I could help

the seller was just to do what they're asking. I felt pinched pretty hard. So anyway, I learned a lot. And so whatever I lost money wise, I gained in experience off the charts. So, and then I moved into my third deal. It's a flip. I use private money to finance it, all parts of it. And I'm doing a profit share as part of the payback on this private money. And it's going awesome. We picked it up, closed in two weeks. The rehab, we took one week. I will say a week and a half.

We found an issue with electrical hold that kind of pushed it out. But everything else was done. Literally, I was just talking to my agent like 30 seconds before I got on with you. And we're putting it up on Zillow. So that's awesome. Not Zillow on NLS. And I was just on zone. But anyway, yeah, so that one's good.

That one is 60K. And we have it, I think we're being really conservative. We don't have it marked way up on the sales price. So there's a great opportunity to, if we get a little bidding war going on, it could go up higher than that. But conservatively, 60K. So that's going to be a nice one. And then I got another flip under contract right now.

financing is in order with hard money and everything's ready to go. We're just, we're getting ready to close on that. And we'll jam in and we have about four. I'm hoping for four, but conservatively six weeks of rehab work, everybody's lined up. And then that one's going to be a actually just reraned comps. We were thinking 90, but it's going to be about 120K on that one. So that'll be a sweet one.

Awesome. It's one thing that's about an appreciating market like this is any delays typically end up making you more money. Yeah, I know. It's right. Just hold off. Yeah. So anyway, that was pretty good. And then I just got one under contract earlier today too.

And that's a little con. These funny, these little condo deals keep popping up. And the hard money guys out here in the West Coast don't want to touch stuff under like 300K. And so it's the, I just like, well, I got to figure out something. So I just started, I started using your, you know, your scripts with private money. And it's like I got more more money that I know what to do with now with people that want to. That thing works.

It kind of works like a lot. So yeah, it's amazing. I didn't have to talk to very many people. There's people just have cash. And they, like you said, I know. I keep saying that.

I don't know. And there's more money in the system for deals than there are deals. The least likely people as well. That's very. Very interesting. It's always, you can't judge a book by its cover. I'm telling you, especially, I have money.

Because when it comes to money, people are so private about it. And there's a lot of people, you have no clue that even have any money, right? It happens all the time. You need to figure that out. 100%. Yeah, I had a guy call me today. It has told me, he called me to tell, he had heard about this deal that we're doing right now through another friend.

And he's like, hey, dude, I got like 50 to 80,000 that I can, I can spare. I'm like, spare. Oh, yeah. Well, I could use it. So anyway. That's great. That's great. Yeah.

And you just keep on performing and you're going to have more money than you'll ever be able to use. Just do good by your people and pay them on time. And they're like, hey, I got more. Do you want? I got a friend. I need some. And I got my brother-in-law, he wants to get into. And you're just like, oh, stop.

I need more deals, you know? Yeah. That's the way it works. So that's how I know you're actually doing it because that's your experience. There's two things that I was really excited to talk to you about. And, you know, typically, you know, I don't know, maybe a year goes by before I invite a student to come on and share their success, but you've been here longer than a year. And I don't have too many stories like you to share,

meaning, and that's from two aspects. The first thing is you started and you stopped and you restarted, you stopped and you started again, which I acknowledge you for that because a lot of people don't and they just go on and they go do something else, only to find that that struggle is most likely over there as well. The second thing that I want to acknowledge you on is you are working in San Diego, one of the more probably tougher competitive markets in the entire country. And not necessarily to do real estate, but as far as the quantity of deals, you know, in social media, you hear about people in the Midwest and in the South, you know, they flip, they wholesale seven properties this month. And then people on the coasts, east and west, they hear that. And they're like,

well, I only got one deal in two months. Yeah, but. you made $60,000 on that one. And the guy that did seven only made $2,000 per deal. So I just wanted to kind of shine a light on you. And as an example as, you know, if you do the activities and you do them consistently, you will get the results as you are getting. And second, you can do real estate in any market. And so if you, their volume of deals is low, it's probably because you're getting big pops on your deals. And if you're doing a high volume deals, you're probably getting a lower, a lower profit per deal. Typically, rule of thumb.

There's always exceptions and there's big operations out there that do a bunch of deals in Los Angeles and a bunch of deals in Miami and stuff like that. But anyway, just want to acknowledge you for that. So looking back, knowing what you know now, let's go back to 2011 when we first met. What would you tell yourself back then? So, such a good question. I feel like if any of us ever wrote a book, that's what it would be about, right? It's telling you a younger self, like, hey, man, do this. You know, and so I would say, I would say a couple bad things had to happen.

You know, not even bad, but just things that had to happen for me to wake up and realize how, like, this podcast is a part of the C-suite radio network. For more top business podcasts, visit C-E-Suite. www.sweetradio.com