KGCI: Real Estate on Air - From Active Duty to Flipping 40+ Homes a Year with Dustin Overlson

Episode Date: March 5, 2025

Welcome to Uncommon Real Estate, where it's all about finding creative solutions for real estate agents and investors. In exclusive mastermind conversations with some of the brightest minds in real estate, you'll learn how to earn an extra six figures a year. Don't follow the herd. Be Uncommon. Here are your hosts, multi-millionaire real estate agent and investor, Chris Craddock and Jeff Safright. Hey, friends, welcome here to another episode of your Uncommon Real Estate podcast with the host Chris Craddock. credit myself Jeff Saferight. Today we have on with this Dustin. Olerson, Chris, I know he's got all sorts of different things going on. I know Dustin from a couple years ago, but now apparently he's got like $25 billion worth of projects going on that we're going to talk about. So why don't you give us a better introduction there for

our man Dustin and let's jump into it today. Yeah, absolutely. So I've known Dustin for many years since he just right after, actually he was still in the military when we've first met. And the whole goal of the uncommon real estate is knowing that wealth is the way we define it. Wealth is when your money works harder than you work, right? Like, how do you get your money to work harder than you work? And so with that said, our goal here is to learn not just to trade time for dollars, which is important. That's how you start amassing money, but then turn that to wealth, which are assets that will work so that when you go on vacation, your income doesn't go on vacation. When you go to sleep, your income doesn't sleep, but that it's always working for you.

So with that said, Dustin, tell us a little bit about yourself. Tell us your story. Well, Chris, first, like always, you know, I have to thank you and the Redux group because, you know, that's where all started. I know, Jeff, you probably remember, you know, I mean, we're like pass internships back then. I was coming out of the military. I didn't know heads from tell about real estate. And, you know, Chris, you give me those times and giving me those hours. I know I don't think you thought I was intensely listening. Like, you know, hopefully I showed you I was and actually taken the time that you gave me and, as you would say, massive action. And like, I still give quotes to my teams that

things that resonate with me today from our conversations. And, you know, some things and I would text you over the years and call you over the years because the things you learn and things you go through as a real estate investor really just happens over time. And you have this realization of the mentorship or the coaches are those wise words. Don't really kick in until you end the situation. So, you know, the time that you gave me as a soldier that was definitely a lost soldier for a minute after 26 years of service, I just didn't know what I was going to do again. And you opened your arms, you opened your team, your team was more than willing to accept me for all the flaws that I have. And I can't say I got rid of many of them, but I've gotten better as a

soldier. And we don't have a high success rate with transitioning. It is really low because of, you know, what we go through, our mindsets and how we see things. And, If I didn't do that program, that military transitioning program with you, and, you know, it was Jeff, it was Lindsay. Your wife, you know, definitely was so kind. You accepted Margaretha, my wife, excepted my kids. I would not be here doing what I'm doing without transitioning and getting that program and getting that high level of exposure. So thank you and I'm glad to be here. And with that said, I mean, people that work.

at high levels tend to stay working at high levels. So, you know, and also this is one of the things that I love. You know, I've shared my favorite, one of my favorite books, how to win friends and influence people many times. And actually, I still remember, I forced my brother to read it when he was in college. And he was like, he's like, I'm not leaving the front of this, the cover of this book on. He's like, how to win friends and influence what? Like, and I'm like, it is life changing. But you were able to recruit people in the military. I remember crew people say, hey, how about you put your life on the line? You know, but do this for a mission.

And so you were making a sale, but it wasn't a sale of just like, hey, sell your house. It's like, hey, how about you put your life on the line for this mission? So you've always been in sales. It was just a different type of sale. But when you came over, we always were talking about investing. And I know you took that like, all right, how do I do that? So tell us how the first investment project went and just how that started going because I want everybody to realize that you don't have to come from money.

You don't have to, you know, have just, you know, a leg out. Like anybody that decides I am going to figure it out can make things happen, right? Like it happened with me because I just was relentless with it. It's happened with Dustin because he was relentless with it. And it was just just incredible. So with that said, tell us your process because the reason people start is because they don't see the path. So let us hear about your path. Yeah.

So I mean, vision is everything, but mindset was just fundamental. And something I had to realize real quick was I was thinking too small and my pride and my ego was in my way. So I was thinking way too small, you know, and it's because I came from not a lot of money. As soldiers, you don't make a lot of money. And I didn't realize how much that kind of limit me in inner real estate, you know, and actually being able to have the confidence that go into a $300,000 acquisition and purchase, sit in it six months, pay another mortgage payment on top of my other house, $2,000 or $3,000. And the scarcity mindset was the first thing I had to overcome.

Because as a flipper, especially as a volume flipper, you have to have an abundance mindset and everything is roses every single day. You have lots of other people surrounding you that tell you you're spending too much. Your contractors are saying that's a stupid move. You know, you have real estate agents saying your ARV is too high. And you need to take in all of that. But as the operator, it is really important that I keep a very clear and positive vision. Just real quick.

You know, I know some people, you know, even stuff like ARB is a new concept for them. What is ARB just for anybody that's new to that? So that after repair value of the home are the market value of what you're going to sell the home after repairs. And when you're flipping a home as investor, as a new real estate agent or a new investor and your first home, like I was in my first home, your delusions of grandeur, like, you know, you really believe that this house is a $500,000 home because you're putting your sweat equity in it. You're putting your life. You're putting your soul. You're putting your money into it. A lot of people are relying on you.

And you get to this delusion that kind of fogs in that, you know, your 400. $400,000 house that should be sold for $400,000 is actually worth $500,000. So the ARV is what you could sell the home for after repairs because it's an increase in value from the current market position. So the pre-existent home is what you buy it at and it has a certain value, let's say $100,000. But after repairs or renovations, your after repair value increases higher to the market value. you're going to sell. That's about the definition of a ARV. Okay. Cool.

All right. So keep going on everything else. Yeah. So, you know, it said, you know, it was really mindset, a conversation. I always remind, I always remind you, and I still bring it up every now and then, which was I sit in, and this is when I realized my mindset. And this was right before I started flipping, and I'll go into my first flip, which was, I sat down and I had a great idea, I thought. and the idea was a company and you said, Dustin, you know, you're full of great ideas and you're brilliant and you do all these great things. But if it doesn't have this number and you gave me a number,

I don't want to really talk about it. But if you can reach this number, I would completely back you. And I sat there for about three to four minutes and I couldn't come up with a business that reached that number. And that's when I realized I was thinking too small. So when I started my first flip, I hunt it because you just need the deal. The deal is the most important part. A great deal, a great house. Everybody will want to fund it and it's going to sell. You need three things and you need a house.

You need money and you need contractors. If you have a great house, the other two will follow. So my first house was a very great house. it was 50% of the ARV, maybe 40% of the ARV, which is the after repair value. So when you have a project like that, everybody wanted to lend on it. The deal was so good. A partner of mine is still a partner. It was Jason Johnson and Matt Culliver partnering on me on this deal.

They said, Dustin, don't worry about the money. The deal was there. We'll find you the money. Everybody's going to fund this. And it was easy to fund because the deal was so, great and was such a great location. But it was a very complex house to the point that me and my wife were actually hanging sheet rock. We were actually painting doors. We were actually in there on the weekends because the house was so complex. But having the mindset that this is the most money that I've

ever invested into myself and into my family, this is the most money anybody has ever backed me in. and this could be the quick rise or quick fall on my real estate career real quick as an investor. So that's how I got into the first project. I sourced it with a wholesaler. I met the owner. I convinced him because it is a sales thing that, hey, I can close and I will close on time and that your house is in good hands because they had emotional attachment. The next thing, I had to go recruit some contractors and I lost money.

contractors, you know, doing it the hard way. And, you know, I got taken advantage of a few times. I got that corrected. And then I pushed through for six months on my first flip. And it was hard. It was really hard. It was challenging. I was tired because I was working for Redux Group, doing listings, by side, showing houses, doing open houses, and on any spare time, getting in there to start work and help out my contractors. So that was my first start of my first flip. Yeah. So tell us the numbers on that just so we understand it.

Yeah. Where did you find it? And just so that everybody knows, we're not only going to hear the win. We're also going to ask him about the one that was the biggest loss. And I'll tell you, this was what a mentor said to me, never trust somebody that doesn't walk with a limp. And the reality is, if somebody ever. tells you that they've never lost on a flip, then that is not a person that you want to invest with or be or trust because it just means they haven't been doing it long enough. So with that said,

let's hear about the numbers on the big win and just so that everybody understands there is other stuff that doesn't always work out the way you want it to work out. So all right, the big win. How did you, so first question, how did you find the deal? So found the deal. marketing on Facebook, wholesaler reached out, out-of-state Maryland, wholesaler. It was a distressed landlord. That's how I found it. And how much you buy it for? $150. Cool. How much did you see as ARV when you were underwriting the deal? Probably like $500,000. No, I got for $150,000 and I want to say I thought it was a $450, $475 house.

Okay. Cool. And then how much did you understand? right having to put in for renovations? Underestimation, I think I was at 90,000, and I end up walking out at about 120. Okay. So about $30,000 off on it. But again, if you buy right, you know, there's massive forgiveness in missing the mark as far as, as far as the renovations go. All right. So 1.30.

So you bought it 150, 130 into it. what were your costs for for money? Obviously a bunch of people invested with it. So and and just so you know, if you pay a percentage, it's still a cost. It's just a, it's called a variable cost. But if you pay like a bank up front and you're paying over time, you know, you've got your fixed costs. So there's a cost either way, but it just, it just depends on how you do the deal. So Dustin, what were your, what were your costs and or structure? So yeah, the cost wasn't that bad. I really had soft money, a very good private money lender because the deal was so good, the experience investors that tagged with me shot the deal around and, you know, you just didn't have to pay.

And I think I was paying 8% APR really on, you know, a private money. So that was not bad. Yeah, yeah, that was not bad at all. You know, commercial lenders charge for a month. Yeah. Yeah. Yeah. So it wasn't bad. I had the monthly payments that had to be paid and, you know, I had to pay taxes and utilities and a few other things that came out of my pocket. I would say on that deal, unlike what I do now or have paid, that was probably one of my lowest paying for the money, you know, leveraging somebody else's money. Right. Right. Right. Okay. So paid 8%. And what was the total, I guess, after you paid agents on the backside, you paid your, your closing costs, you paid your utilities, you paid your builder's risk insurance, which

let me just tell you guys, please, please, please never get renters insurance. And I think, oh, it's so much cheaper because, yeah, it's cheaper until you need to go after it. And, you know, then the insurance company says this was never meant to be a rental. What are you talking about? And then they don't cover it when your house burns down, which, you know, we've seen happen. So thankfully that one didn't happen with me. But, you know, it does happen. So how does that, uh, All in. What was the cost all in? So it's funny you said that because I have renters insurance on it because I did not know. And the investors I was with actually pushed us that way because it was so much cheaper.

And it wasn't until later on I learned that tip, you know, maybe 10 houses, 15 houses in because you're right. Everybody is coached to use the renter's insurance. So I actually had a very low insurance. Nothing happened luckily. and, you know, I walked away and the insurance provider didn't show up. So, you know, I was about 120 in construction. I ended up selling it, I think, was for $410,000. So it was another big drop from my $450 that I thought I was going to get. I did list the house, you know, so I am a real estate agent. So I didn't pay that sell side. It was a conventional loan. It was a very clean loan, a very fast close. And I just had to pay the agent. they're 3%. So all in, I mean, I would have to run the numbers, but, you know, we got it for 150. We spent 120 on construction, and I probably had another 30 or 40 in holding costs when you're talking about utilities, taxes, monthly payments, and everything else on top of that, and the lender. But if I remember correctly, I think it was about 100 and 4005 on the alpha when I walked away from

the deal. Okay. Cool. Cool. Cool. And you said you had a couple partners on that one. Yes. So new and, you know, I had paid the play and it was definitely worth it. You know, because they provided me a lot of leads from their phone and they said, hey, you know, contractors are right here, asks what you need. So they did help me source contractors. They did help me source the loan. These are things that I just didn't have the expertise or the knowledge of how to get them. So by me partnering with them, they found me of them. money. They found, help me find the contractors. They showed me how to shop at Home Depot and reduce costs and what not to do in and made phone calls for lower appliances and all that. And I split it a third and a third with everybody and I did not have to put any money in. I didn't put any money down. I didn't do anything. I just bought the great deal and everybody saw what it was. So, and again, this will be the last question I ask is I'm sure Jeff has. has some questions to do, but this is like one of my favorite things to talk about. And I think

it's where a lot of times people miss like the whole process, skip steps. And that's when they get burned. So you didn't pay for these people to coach you, but essentially you, you brought them into the deal so that they would help you see things that you wouldn't necessarily see up front. Looking back on it now, you've done a bunch of flips. So you have. understand what to look for. But can you just talk about the thought process behind? Because I know a lot of times people just want to save money. I can figure it out myself. They probably cut their own hair, right? But like, you know, tell us about about that thought process real quick. Well, I mean, I think if I did not do that because they were actually coaches and they were very experienced.

And I would not have gotten out of the house as fast as I did. I would have paid more on. the interest rate for the hard money loan, I probably would have lost more money with contractors, been in their house longer. And even though I, you know, I probably only walked with maybe $36,000 or something like that or $33,000, I would have probably had a much higher loss. I would have put the house on market much higher as well, which would have been more days on market. And the processes of construction is so critical. You know, the phases of construction of what you do when and how do you know when a contractor is charging too much or too right or maybe even too little. I didn't get any change orders through this project because of their

expertise. It was a great project and I smiled and I enjoyed it to the point that I wanted to do more because I had so much guidance and good times versus bad times because I have people to reach to and talk to and speak to and show up on the site and say, this is what you need to look for. Come on, we're going to go to Home Depot, and I'm going to show you, you know, the right fixtures, deck mounted, you know, what deck mounted is and what that looks like. So, no, it was definitely worth it. And I did it probably three or four more times, maybe more than that, with more investors because I enjoyed doing it that way and learning.

And that may have been the fundamentals, that building block that I received because I had so much guidance and I wasn't learning on my own. I didn't understand money. I didn't understand a P&L. There's so many other things about it. Taxes, how does it impact your taxes? Entity structure. I mean, they help me with all of that stuff. Yeah.

No, that's great. That's great. Jeff, what questions do you have for Dustin? Well, I think does, I love the, I love what you're talking about. You know, it's kind of like that on-the-job training, right? It's the apprenticeship, but I feel like we're so much missing in society today, right? Like, you could have went out and taken a course or bought something online to learn about the process. And then you, you know, you pay how much ever money you're going to pay for that and for your coach? And at the end of the day, you still haven't done it, right? So, you know, through the on-the-job training, so many people, how do I get into this? I like that you went out and found the deal, found the investors to work with. you to teach you as you go along. And I think that that just that needs to be highlighted so much, you know, because again, there's so many people sitting on the sideline, just thinking through the process and here you are. Now, how many years, when was that? When was your first project? I'd probably say maybe 2019. Yeah, probably 2019. Acquisition. Sell was probably 2020.

Okay. That's awesome. And how many have you done since then? I'm probably at 100 right now. Yeah. So, I mean, that's five years ago, right? I mean, you know, so many people spend so long and, you know, just again, on the sideline trying to learn and just so nervous to jump in. And so that's, that's pretty cool that you're doing it that way. Well, I, Jeff, I got a secret too. I probably should share and disclose, which most people probably don't know is to this day, I have never done a flip alone.

really no like with with so you're doing it with other investors like pmls or or tell me i mean every house i've ever done even i have probably 23 in construction right now and there's an investor or partner or somebody tied to that house with me because of that fundamental experience that i learned in the beginning one you're leveraging other people's money better and one, you're also leveraging your time better. But the biggest thing is volume flipping. If you're going to do try to do 40 flips a year, you know, trying to put $30,000 on 40 houses, plus you're going to be over budget and monthly payments. You're talking about millions of dollars. This is millions of dollars to operate that way, not even construction costs. So what I

learned that even a wholesaler, you know, wholesale brings me $100,000 a spread. Let's say, this partner. I'll give you $50,000. You were going to sell it to me for $25 and I'm open with it. I'm going to do 50, but you're not getting any money right now. And then I, and then if it, and when it deals that healthy, you know what my lender usually says? You don't need any money because you're 40 cents on a dollar and you have a great track record and a great reputation with that lender. And now I'm not putting any money down. Yeah. Yeah. So are the, so the people that you're partnering with now are you the experienced investor and they're coming in more as as private money or how are you finding your your partners now? I'm guessing you find the deal and then you bring people in.

Yes. And I do have a good percentage, maybe 25, that bring the deal and it's like, hey, can I flip with you? You know, they don't want to put any money in. They don't want to, they have a great deal, just like I did. Right. And it's like, yeah, of course. So a lot of it does. does happen that way as well. It goes both ways. I would say I'm usually the least experience because I've only been in real estate for about five years. I may have a great amount of volume, but I would say a lot of investors are 15, 20, 25 years in. And, you know, they just learn what they do well. And it's not flipping a house. But they get one from, you know, a family member or a close friend that's really, really cheap and they're like, hey, you flip it. I don't want to list it and we're going to

split. And I'm like, hey, let's just split it, you know, at the end. So there's a lot of different deal structures that way now. So it sounded like the first deal you structured thirds for, it sounds like you had three partners, third, third, third. Is that how you typically structure most of your deals or how do you, like if you're bringing a deal to somebody, you know, using OPM, other people's money, like, how are you structuring that deal versus I bring a deal to you and I say, you know, Dustin, I haven't done a deal for a while or ever I want to learn from you. Like, how are you structuring those deals? Yeah. So it is a combination now. I really enjoy flipping with no money in. Is this, you know, the infinite return. So, you know, wholesaler may bring a deal and, you know, I say, hey, let's flip it together. I'll give you a third or I'll

give you half. And I may wholesale that to our LLC, our joint venture. And I may take, since I got it for, you know, 40 cents on a dollar, very cheap, I may take that wholesale fee and use that as a down payment for my LLC. And if the private money lender or hard money lender is like, no, you guys are good, no money down. I keep the money. And I'll use that money for monthly payments made, you know, for the mortgage payments. Then what I use. is gap funders, our microflippers, our bridge loans. There's a lot of words for it. And I may take two of those at $10,000. Hey, investor, you know, some people are mortgage lenders. They're in this field. And I'll give them maybe a 40% return on $10,000. And I'll get two of those as $20,000.

And what that'll cover is mortgage payment, startup costs, holding costs, utilities, taxes. I have to just figure out. It depends on the deal. And that's how I kind of structure it. I hold everything sometimes in a land trust. It depends. As beneficiaries, I might hold it in a joint venture LLC, maybe to enter the structure. And then at the end, everybody's line by line on the Alta.

I believe in full disclosure and I believe in full transparency. So everybody gets to see the Alta and who gets paid on what. And that's one way I'll structure it. So we're at the top of the hour, which, you know, and I feel like we haven't stretched the surface. We definitely didn't get into the biggest loss yet, which we need to maybe come back and do that as well, because that's really important. You know, there's also, there's both sides of it, and that's part of the growing piece of it. But there's a lot more as well to it.

So maybe we'll have a part two here sometime in the next few months. But Dustin, obviously you've come and joined Gain, Global Agent Investor. network at EXP, lending your expertise and everything that you bring to the table there. I'm super excited about working and partnering together with you there. Tell us if somebody wants to learn more from you, how can they get in touch with you? Well, you can reach out to me on by email, which is Dustin at oversions.com. This is my first name, the at sign, and my last name with the S.com. Easiest way I'll respond back within 12 to 24 hours and get you into our next.

network with either a grid or a gain. If you're interested in micro flipping or doing something a little bit smaller, if you want to invest with us or our group or me, I would start out at a smaller level and give you exposure. I still, to this day, meet my investors at houses. If you're too far, I do a FaceTime and we have those conversations. I'm very connected with my investors. We're also looking at going into Texas soon. So we'll be moving out to Texas. hopefully this year and doing some stuff out there. So we are kind of broad in it. But that's the best way to get hold of me, Chris.

Boom. Awesome. All right. Jeff, you want to take us home? Absolutely. Hey, friends, this does conclude another episode of your uncommon real estate podcast with your host, Chris Craddick, myself, Jeff, Safe, Right? I hope you had a great time today listening in on part one, hopefully, of Dustin's story here. Wherever it is that you are, you know where you're at, go to the podcast that you're on iTunes, Spotify,

where you are. Give us a rating one star, five star, anything in between. We love it all. Give us a comment. Let us know how we can help you level up because that's what we're here for. We'll be back on next week. Same time, same place for those that like to join us live. Until then, continue crushing it. Have a great day. Bye. Welcome to Uncommon Real Estate, where it's all about finding creative solutions for real estate agents and investors. In exclusive mastermind conversations with some of the brightest minds in real estate, you'll learn how to earn an extra six figures a year. Don't follow the herd.

Be uncommon. Here are your hosts, multi-millionaire real estate agent and investor, Chris Craddock and Jeff Safright.