Epic Real Estate Investing - Gettin' Paid with a Flip, a Lease, and a Trade - Kevin B. | 775

Episode Date: September 14, 2019

In today’s Epic Field Report, Matt hosts Kevin Beem, a member of Epic Pro Academy who closed 3 deals (4 houses total) in the past 4 months! Tune in and find out what deal was the best one for Kevin, how he founded these deals, and the biggest lessons he learned from these transactions. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. From coast to coast, Epic investors are doing the most. It's time for another Epic Field Report. All right, Kevin, so welcome to the show. Thanks for having me, man. What a pleasure. You bet, you bet. Shoot, the pleasure's all mine. I noticed in our Facebook follow-through Friday

inside of our private Facebook group for the Epic Pro Academy members. You'd post it a win. And remind me, Kevin, what market are you in? I'm in the port here in Michigan area, southeastern Michigan, kind of the thumb there, if you're looking at the old Mitten. Okay. Right here. Lake Huron, basically, right near Canada. Got it.

All right. So I'll just read it really quickly. You posted a little bit late, but you got a flip sold all in for $123,000. You sold for $173.5. After all said and done, walking away with $40,000, 90 days start to finish. If you had to do it over again, you wouldn't. spend too much time and money tied up for too long, I think if I'm reading that correctly. You'll be something the house that we picked up for $7,500 for $3K, $300 a month, $3,000 down, $300 a month,

interest only, $30,000 payoff. So is this multiple deals then? Yeah, yeah, that's three different deals, four houses total in about the past four months. That's sweet, that's sweet. Okay. So, Kevin, if I remember correctly, and I didn't recognize your name, but I feel like I recognize your face. I went to the intensive last year in Indianapolis and met you there.

All right. Very good. Yep. So I guess, shoot, tell me about the, you got three of them here. Which one are you most proud of and why? Well, I'm proud of the flip. I mean, because I had so much to do with it. And it turned out great.

And it was bare bones, nothing in the house. I mean, it was gutted completely, which was kind of a blessing. But so it turned out great. You know, I was happy about that. and our trades worked together. Everybody's been busy, so it was nice that everything worked out on time for us that way. We didn't really have a dime into that one. That was seller financing on the house itself.

And then we brought in private money to do everything else. So we didn't have a dollar into that one. Those are always fun. Yeah. And then just kind of, I was actually putting my bandit signs out, kind of driving for dollars. My head was on a swivel. And I found that $7,500 house. Somebody lady was moving out.

There's trash all over. And I said, hey, is this place? for rent and she said no we're moving out she's done with this place i said well have her give me a call and she said would you give me 10 grand for it i said would you take 75 she said i wouldn't give you five bucks for it honey she's like i was going to get let it go back to the city so we got her under contract and um that's the one we lease optioned out got a call from the bandit signs on that 20,000 one and then i was approached these people wanted to downsize so their house is beautiful and finished 2200 square feet and we're

We're trading them even up and we're like all in at 25. That's great. Okay. So let's go through it. How did you find all three? How did you find the first one? The first one was driving for dollars. I had seen all sitting there forever.

I finally, I was a wing in a prayer, kind of looked him up online, kind of just did some Prince in throughout one phone call. He called me right back and said, if you gave us 57, you know, we'd be good to go. I said, would you hold the note until we're done? And he said, yep. So they just wanted to get out for any fit. They were paying for it for 10 years empty. Super.

Okay, so you found the first one driving for dollars, just went back and did the research and made a phone call. The second one, you were putting up your bandit sign and just saw somebody moving out and reached out to them. Yep. And then the third one was how? It was a bandit sign call. The girl was in a bad way and had been renting it.

They weren't paying her, the backwater bills, taxes, all that. And so, you know, we just threw out the offer of $20,000. and, you know, she took that and we were good to go. If that one was fixed up, it would probably be worth about 75. I thought about doing that too, but after the first one, I'm kind of done. Got it. On the first one, you made like 40 grand or something? Yeah, yep.

And then the second one was a lease option. You got three grand down. You're getting $300 a month. Correct. Sweet. And then the third one, what's the extra strategy for that? We are just trading it. So I put up a privacy fence forum, did a little bit of drive.

We're going to put windows in it for them. And then we have taken Priscilla house, which is beautiful. They've already done all the work. And so we're going to actually probably hotel that one and throw it on the market. I don't get it, though. You're trading. What are you trading for? Well, a house for house.

Yeah, we got a 1,100 square foot house that we paid 20 grand for. It needs some long. Three dumpster loads. Oh, crap came out of that one. And then this guy called my band of sign. He said, well, I assume you guys are investors. He said, I kind of have a weird request. Well, my wife had a heart attack this year.

They're in their late 40s. And she just really wants out of that house. They got some bad juju over there or whatever. So I said, how soon would you like to do this? Like yesterday? And he looked at me like squares a heart attack and just said, yesterday. I said, all right, man, let's do it. So sign the paperwork and they're happy, man.

They're super happy. I got texts just sitting there just ecstatic. Got it. Okay. So you had another house already that you traded them for. He was explaining, he said, if they had a smaller fenced-in yard, a longer driveway with a small garage, a basement, and 1,100 square feet. And the house I had, the only house I had, checked all them boxes. So I want to show it to them because it was in such terrible condition.

And my partner was like, well, they need some hope. Give them the address. Let them drive by, see what they think. They were thrilled. They were just absolutely ecstatic. Yeah. Fantastic. Okay.

So now you have this house of theirs that they'd be. previously lived in. What are you going to do with that? Like, where was the money made in this trade? I think we're going to list it. Okay. I think we're going to put it right on the market. We've kind of been tussling back and forth with if we're going to go to the investors with it or or could just go to the market. And even though it throws our payday off a little further, I kind of, I kind of think we should just take it to the market. Sweet. Sweet. All right. So the first one, the fix and flip, biggest lesson learned that you, that you had there. I just wonder how many of those 7,500 deals I kind of found in the midst of me actually working and pounding nails and doing stuff on the flip, plus management and all that stuff.

And I'm a little bit of a control freak on quality. And, you know, I just, being that it was our first one and we had investors money, I just felt a big responsibility to make sure it got through to the finish line as all. Sure. So what you're saying is you could have leveraged your activity in the neighborhood to find more of those $7,500 houses? I just, I would have felt better getting our systems in place, more bandit signs, more letters, you know, whatever the deal is rather than actually just with tool weld on. Got it. Got it.

That's a great lesson, actually. I mean, the best time to get a deal is when you just got one. And when you're in the neighborhood and you're doing the work, I mean, you're exhibiting your competence, you know, you're being responsible and you look like you know what you're doing. It's a fantastic time to leverage that for sure. Yep, absolutely. Great. And then the second one that you lease optioned, what would be?

was the biggest lesson learned there? That ended up being kind of friends. We almost got buffaloed into that a little bit. I was ready to give that to an investor, but what do you mind? I needed a house, and it just kind of got a little convoluted dealing with friends. We kind of decided from here on out,

we're not dealing with friends and family as much as people. So dealing with friends, that was the second lesson. Yep. Very good. And then the third one that you made this trade, this rather unorthodox deal, what was the biggest lesson learned there?

Just don't assume that maybe because you wouldn't do it or it's not like conventional wisdom that somebody's motivation wouldn't lead them in that direction. I just, I'm all kind of baffled by the whole thing, really. But they're happy and what more, I mean, it feels great that we're actually helping, you know. Honestly, it's amazing. It's awesome. Congratulations. Well, Kevin, thanks for sharing.

Thanks for taking time out of your day. And I don't know, just keep doing what you're doing. What are the plans for the future now? man we're on well we got the iri i solutions and really i just want to get in the office and get hammering out some of these deals you know i'm i'm pretty comfortable talking to sellers and stuff now and um i got a team built up local professionals um my two partners are a loan officer and a realtor and um between the three of our connections it's a smaller town so yeah we can get a lot done it's awesome Awesome.

Man, I got thousands of hours logged listening to your stuff, man, and changed my way of thinking for sure. That's awesome. Well, thanks for sharing that. And a bigger thank you for just taking action on what you've learned. Amen, brother. Yeah, it took a long time. This time last year, I was sitting there wondering if I was going to do it, you know. So it feels good that things are kind of moving in that direction.

Super. Well, let us know if you need any help. And when you get some more clothes, we'll do this all over again if you want. All right. Sounds great. I'd love it. All right. Awesome, Kevin. Have a good day. And I'll talk to you soon. Thanks, man. Have a good one. Bye.