Joe:  Welcome. This is the Real Estate Investing Mastery Podcast.

Joe:  Hey, welcome everybody to the real estate investing mastery podcast. This is a special dirt flippers session. Dirt flippers. I'm with my good buddy, Gavin, who's wearing the t-shirt that I am not wearing, but it's right over there. I love, can you show us the back of the shirt, Gavin? Do you mind? This is such a cool shirt. It says I am a dirt flipper. Let's go. If you want one of those shirts, go to flipdirtchallenge.com and join us on our next challenge, flipdirtchallenge.com. So Gavin, we're going to be doing, one of the things you and I have been talking about is we're gonna be talking more about the deals. Sometimes we're just so busy, we don't really take the time to talk about the deals we're working on. We just did two deals last month ourselves, $2,500 profit on one and $7,500 profit on the other one. And, you know, we've been doing in this business for so long, and we kind of forget, there's a lot of people like they have never done a deal before, and they… We just take it for granted, I guess, right? And not to sound arrogant or something, but, you know, $2,500, $7,500 profit on a deal is like, but I remember Gavin just getting started like that was a big deal, right. Right? Do you remember those days?

Gavin:  Absolutely. I remember my first, I made $1,500. Most important deal to date. Because I installed that it actually works.

Joe:  That's a game changer, that will change your world. So, you know, now as you do more and more deals, it's like, ah, you now, whatever. But we're gonna be, first of all, our apologies for not sharing with you more of this stuff. We always have taught what we do and do what we teach, okay? So we're going to start talking more about the deals that we're doing. And this is one of the first ones that we are going to be doing. And Gavin, I wanted to get you on and we've done a lot of deals together. Sometimes we do deals separately or we'll do deals with clients in dirt flippers or whatever. This is a deal you recently did with a member of our community, right? And so I was going to, I wanted to interview you and ask you questions about this deal and talk about how you did it. Now you've done a lot of house deals. Just recently in the last year or so, you're starting to do more land deals. Do you like land or houses better?

Gavin:  I mean, it's not really even close, it is land for sure, especially now, I mean the opportunity out there is crazy, way more opportunity, bigger response rates on all marketing across the board, regardless if it's cold outreach, direct mail leads coming into you, the marketing dollars go a lot further which gives you more opportunity and the much easier to negotiate. Because we don't have tenants, right? We don't have, you know, the sellers aren't like, oh, this was my grandfather's house that's been passed through the family. It's got his stuff in the sentimental value of it. They feel bad for selling it. They grew up there like you don't normally have this with land. So it's a lot easier, a lot less emotion attached to it. So things can get moving a lot faster. So the negotiation becomes a lot easier as well.

Joe:  Which is one of the reasons why I love land. It's just there's not as much emotional attachment, a lot less competition, and we're seeing three to five times higher response rates on our direct mail. It just a lot easier. Okay, so this particular deal, you talk about how did you pick the market?

Gavin:  Yeah, so we went into a Florida market, you know, like most do, where exactly the way that we teach, you know, you analyze the markets and there's a lot of counties in Florida that you can pick from. And sometimes I'm not big on my over analyzing, I just pick it because I understand after doing a lot deals that it's the process from start to finish that gets the deal done. It's nothing to do with the actual market, right? Now, you could say the only thing that do need to make sure there's this activity there. So once we identified activity, I had 10-20 counties that I could pick and literally it was like one of these or let's go, you know, here because that's sometimes what you have to do because now I know once I've made that decision, okay, in this instance was Marion County. It's a heavily worked county but again, I know the process of what we need to do to get results, okay? Which is getting the deal.

Joe:  Let's talk briefly about what that process is, because what you're saying here is, even in a competitive market, you can still stand above and beyond your competition by doing some basic simple things like what?

Gavin:  Absolutely, exactly that and a lot of it's communication, right, of following the process. There's so many of you guys watching this and you'll all know what I mean and you will probably get the nod of heads as you're watching, but a lot if you do marketing, you generate leads and then you do what with it? You don't make that call, you don't made that offer, okay, or you did make the offer but you never followed up and these are the simple steps that we've taught for years and years, been in the coaching space for over 10 years in real estate and nothing's really changed. The process is never changed, right? You market, you have conversation, you communicate, you make an offer, you follow up till the contract's signed. When the contract is signed, you then work on disposition of that property and then you get paid. And that's always going to be the case. And, that's what I understand very well. So, I understand getting it through each section, right, and until the money hits the bank. And then that's we do and that by doing that alone, you will eliminate 95% of people in your market because you do the things they're not willing to do. They talk about doing, but they don't do it. And I believe that as soon as you've had a conversation with someone three times, you then know them, right? If you have interaction and communication and is building relationships and that's what it's about to get things over and strategize in and doing the little things like we're working a deal which we're not talking about want share something. What I call is we're mirroring a deal right now. We're shadowing, right? It's probably a better word. We have a lady right now, we've got two lots. We've already negotiated this back in November, but she's just not ready. She wanted to wait for the new year. So we don't just say, okay, we follow up in January. No, we're following up in November saying, happy Thanksgiving. Have a good Thanksgiving. What's your address? Let's send a card. Are you ready for Christmas? These are things that you're just nothing to do with the property. Just a quick text, a quick call, one minute call goes a long way of building rapport. So do you think I'm confident, and again we can reference this video if we get these under contract, but this will stop any other marketer going to her because they're going to just do one thing, they're gonna make one offer, they are not going to follow up, or you built the rapport to get the deal done and that's really what we're about.

Joe:  Yeah. I mean, for years, we've talked about being brilliant at the basics and the basic things are pick up the phone, talk to people, right? Well, number one basic thing is consistent marketing. We're going to talk about that in a minute. Number two is talk to people, Right? Number three,make offers a lot of offers. Number four is follow up. And so consistent follow up, even if you're in a competitive market, you can stand head and shoulders above all your competition, quote unquote, by just doing those things. Follow up, follow up, follow up. Okay, so you picked Marion County, Florida, a lot of activity there. People are maybe who were thinking about that market are now thinking, oh, man, I can't do it now. Gavin's in there, right? But no, forget that. There's a lot. There's a lot of vacant land in Marion County. And there's a lot of counties in Florida. All right. So what did you send? Did you? Did you get a list of vacant landowners?

Gavin:  Yep, absolutely. Straight from Freedom Soft. It's basically that, what's interesting is, is that you just follow what works, right? I tell, I teach this, we teach this right? I don't reinvent the wheel. What we tell every Dirt Flipper in the community, every apprentice that we work with, I do exactly the same process, right. We pick a market, we pull a list of absentee owners, we create a list. In this instance, it was probably 2,300, something like that, give or take, male. We separated that into four, so we set like just over 500 per week that goes out consistently. And then obviously the leads start coming in, we use the marketing piece. In this instance was the third notice. Third notice postcard, cool. Yep, yellow. But we send that out, the calls come in, go into a recorded voicemail, okay? And then we work the leads just like we teach. You go one at a time, you know, because again, we don't know when they come in. Sometimes we get five or six in the space of an hour, but you can only do what you can do. So Brandon, a partner, he's awesome. He works through them. And what's cool is I'm in Florida, but I don't obviously go to the land. I have never been to any of the deals that I've ever done. And he is in Korea right now. His wife's Korean. So he spends half the year in Korea. So he's in Korea, and he's definitely not seeing the land, right? So all this about, can I do virtual like, I mean, he's in Korea and there's not a chance I'm going to a property. The answer's yes.

Joe:  And he can, he can call the seller and manage the whole lead inside of freedom soft from Korea. Correct. He can send mail from Korea through Freedomsoft. Correct. He can call a seller, talk to the seller, receive calls from the seller text the seller from.

Gavin:  Make offers from Korea as well.

Joe:  Okay, so you sent the third notice postcard about 500 a week for four or five weeks and you got to call this talk about the seller.

Gavin:  Yeah, so this was a guy that wanted to, you know, obviously get rid of his property. He wanted, you now, as they all do, wanted a higher amount. We do what we call a discovery call, right? So again, there's no sales involved on the initial call. You go, you gather information, you're kind of feeling out the situation and then you'll go back and you know and obviously present the offer, right. Now in this deal, just like they all, he wanted, I think it was around 60 something is what he had kind of in his head. I'm writing this down. He wanted 60 grand? Yes, 60 plus thousand was what he was kind of wanting for the property originally, you know, first out kind of the gate, like, what are you thinking, blah, blah blah. Well, it took with Thanksgiving week in the way, right? So I think he was traveling, things was going on. But a few conversations later, we'd made the offer and we got the contract signed for 45,000, okay? So we went under a contract for 45,000 with a 90-day close with a 30-day extension, okay? Now the biggest comp to this that we had that we could use, we had a comparable sell for 70,000, but it was listed for 85,000 and it took quite a while to sell. So 85,00 list and it sold for That's what a good comp for us was. So we strategized. At this point, when we go under contract, we have a realtor that we use. We pay 8%, normally 8% to 10% on this, we pay 8% this realtor. Strategize with him and we always have the same conversation. What do we think we can get if we want to hold at a higher price? What do you think we could get if want to sell quickly and kind of everyone, they get all on the same page with that. Then Brandon and me and him will strategize what do I think and we'll make a decision. So on this, we've got a long close, so we listed it at $72,000. It was like $71,995, something like that.

Joe:  Listed at $71,950. What was your goal? Is your goal to sell it as quickly as possible? Was your goal to sell for the highest price possible?

Gavin:  Yeah. So in this one, we felt that we wanted to be competitive on the market because nothing else was on there at that price to see what bites we would get. Right. So see a bit of activity and then, you know, normally for me, I don't, I'm not a panic, I don't panic when things don't move. Right? Let's see what happens. But we decided that 72 and we'd take just under 70, you depending on what the offer came in or whatever would happen. Now a big key thing that we changed in this because we had another listing that's in closing right now and that one took 37 sorry 31 days on market before we got a contract. We're not talking about that deal but there's a point to why I'm mentioning that. Now when we listed that property we didn't have the pictures and the drone footage available and we listed it okay so we got like a ton of eyeballs on this And I'm like, well, we'll not put our strongest foot forward like next time I would rather wait a few more days and go in first time when everyone's got their filters their alerts start going off in their emails And have everything together pictures drone like everything ready to go. So this one that's what we did So we listed it on December 13th It went live with everything kind of prepared and ready to do we got an offer same day Wow. Okay. We got an offer same day for 65,000. Okay. It's what somebody offered. Now inthis moment, what do you do? Right? So they come 65,00 well, firstly, we're definitely not accepting the offer, right? Cause we're going to get that back out. But how much do we want to push this? Right? So again, my job to with Brandon is like, what do we wanna do? Okay. We've got a good spread here. You know, we don't want to get too aggressive, but we're not just going to take the offer. Right.

Joe:  Let me rewind a little bit. Did you close on the deal yet? No. So you hadn't even purchased it yet. You had 90 days to close plus 30 days to extend. Yep. So, youfound a realtor that actually helped you list the property before you owned it yet? Correct. Did you have to sign on any kind of no novation agreement, any kind of power of attorney, something like that? No, no.

Gavin:  No, no.  I like all right one of them. Yeah, and we could list the contract on the MLS. Sono we didn't have anyone sign.

Joe:  Good. And how did you find that realtor?

Gavin:  He'd worked with a realtor in fairness, previous, but just the way that we teach networking, building relationship with the realtor, and your realtors then become part of your team. Yeah. Right. So, and we just did a live call yesterday, Joe, when we were live doing live call, they have a seller in this count that covers the same area that also will list contract and works with another investor. So we now have a second one that we could do this with. And that was all live. So anyway.

Joe:  That was a great call. It was just yesterday we got a realtor. I talked to a couple sellers. Okay, so was your goal to do a double close or do an assignment?

Gavin:  Double close. Normally I have a rule. It all depends on how everybody is in the deal. But normally like if it's over $10,000, I'll always do a double close just because it's just easier, right? Then we actually did purchase the deal, right, like we said, because we closed on it. We'll pay closing costs, but we won't bring any money in because we use obviously the end buyers money to do a double close.

Joe:  So you found this realtor knew a title company that was going to let you do that using the end buyers money to double close on it. Correct. Now that's an important thing too. I want to mention anybody in the Dirt Flippers community, they can use our actual transactional funding for free if you want to. Gavin didn't even need to use it, but you could have used our free transactional funding to double-close on the deal. But you found a title of company that didn't let you make you use it. Okay. So you got an offer for 65 grand. Then what happened?

Gavin:  Yep. So first thing is, obviously we get the offer and now you get an offer that quick, you know someone wants it, right? This is all just mindset, mind games. This is what it all is, right? So we all know, I know someone makes an offer, they're keen and they want it. If you're doing that day one, you don't want anyone else to have it. Now it's coming up obviously to Christmas is fast. And it also in the back of my head, it's going, I can prove that you can move deals fast, right. So I've got that in my head. Right? So with Brandon, what do we want to do? We're not going to accept 65. So then we counted at, we counted and basically said, I think they wanted a 10-day inspection or something, but we did a five-day inspection, 68,000 is what we counted back at. So we counted back at 68,00 basically saying, look. This is the final offer because this is day one, this is going to sell, we're not worried about it and we could probably get full asking if we want to wait but that's what it is. So we could cut the back and forth out and this was then a 30, this was going to close on the 29th of December. That's what the contract said, okay, 29th December. Now they accepted, we go under contract, okay? So now we're under contract for the 29th.

Joe:  68,000 under contract or 16 less?

Gavin:  68,000. Okay, yeah

Joe:  And how many weeks away was that?

Gavin:  So this was the 13th. I think it got inked on the 14th. It was either suddenly night I think he got ink on the fourteenth of December. So that would have been then So it took 17 days to get the contract. It took then a few days before we listed it, right? We listed on a Saturday. I thing it was the thirteenth It was on the evening of the 15th evening of 14th that we actually went on it got in right under contract And then it was a twenty nights close So it was going to close like within two weeks. And did it close? Yeah. But let me say one more thing. This is good with negotiation. So then the buyer, sorry, came back and wanted to close, asked for something. So in any negotiation, you have to take, obviously it's just a one way all the time. Right. So we asked for something and it was not a big deal. So we said yes. And then he came back and he wanted to push it to like January something. And we're like, so I said to Brandon, he's like, no, we're not doing that. So I said, here, this is what you say. We'll do it, but we want full price. Or we'll give him an extra day on the 30th because he was doing some, he was waiting on something, a test he'd done or something. And so I said right, we'll keep the same price. We strategized, we will do the 30, so we'll gave him an day, same price, if he wants to go to January 5th or 7th or whatever it was, we won't full ask him because again, we're sell this. So he chose, we went back, No, okay, we'll do the 30th same price. So we get that so and then it closed on the 30 We got the wire then on the 31st. Wow. Okay now on that it was a gross profit of 23 000 Okay, the net after closing cost real estate commissions all that title search, blah, blah blah blah We netted fifteen thousand five hundred ninety dollars and seventy five sense, growth, and, sorry, net profit that we then split.

Joe:  I love it. And so that about seven and a half thousand dollars, $7,500 was realtor commissions and closing costs, pretty much. Yeah. Yeah, yeah. Sweet. How many days from when you first got it under contract to selling it? How many days approximately?

Gavin:  Yeah so 17 days from when the lead came in to when we got it under contract but then we needed probably about four or five days so I would say it was like 40, probably 40 days or something if I mean I have to work it out because we had 17 and then we had two… probably about 40 days, 17 days before when the lead came in to get it contracted and the bit I don't know without looking was how many days before we listed it because we were waiting on the pictures, I delayed it because I wanted everything there. So that was us delaying it to make sure we were, again, everyone's seen everything and I think that makes a big difference, like the way it presents is huge.

Joe:  Yeah. Well, this is amazing. I know you got to go. You got to go on another call, but bought a deal for 45 grand sold it for 68 grand, approximately. Yeah. And then net profit at the end of the day after all your expenses $15,600. Congratulations. I love that. And you got how many more deals in the pipeline right now?

Gavin:  So we have one in closing should have closed two days ago. It's got a title problem, but it will get closed. Uh, we have another one under contract. We'll probably take down. It is 3800. And we'll probably tell you that one down. We're strategizing what to do with it should sell for about 13, 14,000. And then yeah, I mean we've got probably four or five strong leads in the pipeline and we just sent out I just scheduled another four weeks of mail will be hitting in the next few days.

Joe:  Nice. Soall of those deals in the pipeline, I get right, what's your approximate profit on those?

Gavin:  Net profit 11,000 on the one in closing around. That's net profit and then this one that if we take it down, probably be about seven eight thousand probably.

Joe:  Yeah, cool. So we're gonna do more podcasts talking about that. That's something that we want to talk more about. And you're still marketing in the same area?

Gavin:  Yeah, picked up a few more counties in Florida, and again, I just want to emphasize, it's nothing to do with the market. This is important, right? Don't get overwhelmed and think which is the best county because you're going to hit them all eventually. And marketing works in mysterious ways. People will respond when they are ready is the luck of the draw. Sometimes they'll call and go, oh, I thought I'd call because this is the 10th postcard I've had or whatever, right, timings everything. So you just don't know. So just because someone's marked in the same market, it's collaboration over competition. Always remember that. And there's more than enough to go around.

Joe:  Oh, my gosh. Totally. I remember one time when I was doing a lot of houses, a seller called me and said, you know what? I saw your billboard. I saw that Homevestors billboard, which I'm not… Homevesters never was. I say your Homevestor's billboard and I got your postcard and I thought, ah, I'm just gonna call them finally, you know. And he thought I was a Homevestos guy. And then just today I was meeting with my acquisitions manager, Matt, and he said he got a call yesterday from a lady that had our… We sent out a check letter, the check in the letter, and three years ago, she'd been keeping this letter for three years and called us. So we're looking at that, working on that lead right now. But you just never know. It's consistent marketing, it's answering the phones, it's making offers always, every time, every lead make an offer in writing, in the mail, and then consistent follow-up. That's the key to success. So all right, Gavin, you got to go. I got to go too. Appreciate it, man. And I hope you guys got some value out of this. This is really important. Just keep it simple. Just keep it simple. I think that's the main theme of this. All right, we'll see you guys later.