Wholesaling Real Estate and Flipping Houses | Interview

Wholesaling Real Estate and Flipping Houses | Interview


– Hey everyone, Lex over here,
and I’m with my student Allie. And Allie, I want to thank
you for coming in today. – Of course. – And sharing your story with everyone, because a lot of people out
there that want to learn how to flip houses. – Uh huh. – Like hearing stories like this. So, for those out there
that are watching this, tell me a little bit about yourself. – I’m 26. When I had met Lex, I
was, would you say 23? – Okay.
– About 23. I grew up in New York. I was living in Manhattan,
doing rental properties after I went to school
at Indiana University. And my dad was living in Miami, and he went to one of
Lex’s meetup meetings, and said, hey, Allie you
have to meet this guy. You know, he’s flipping these houses, and he’s doing all of this business, and you need to come down here and see what it’s all about. So I went to a bootcamp,
and quickly after that I moved to Miami and started doing this. – Okay, so, alright, so you were a Realtor in New York doing rentals, you came down,
you did the boot camp with me. How long did it take from the boot camp until you did your first deal? – From the bootcamp,
until I did my first deal, I would say about a year because I got a little distracted. – Okay. – I had opened up my own business, doing something completely different. – Oh, that’s right, I remember
this now, you went on, you keep saying it wasn’t
a balloon business. – It wasn’t a balloon business. – A photo booth. – It was a photo booth
business at weddings. – So guys. – I got a little bit distracted. I thought I could make
more money doing that than real estate, I was very wrong, it was a wash, I came back to Lex, I would say a year later, and said okay. I’m ready to do this. – So pay attention guys, because a lot of times
people will do this, they’ll come to a bootcamp, and they’ll go away for
six months or a year, and then they’ll come back, and then the second time
they’ll figure it out. Alright, so you come back now, second time you do the bootcamp, and then you made a
decision to take this job in the evenings, what was that job again? – So, I was a manager type of person at a halfway house. – Okay. – So that allowed me to work evenings, so I could support myself a little, support myself, so I
could work during the day, and learn how to wholesale. – Okay, and for me it was
an interesting observation, because Allie, you know
she came into my office, and she wanted to learn how to wholesale, but she looked exhausted. You know, she was working this night job, she had come in, and
finally after observing this for around maybe two months or so, I just said, how much are
you making on this job? And you were making, what $11 an hour? – $11 an hour. – And so I said, Allie why
don’t you just quit that, and just focus on making
offers on properties? And she was like, well how am I going to pay my bills if I do that? And that was when I came up with, and I haven’t done this with anyone else, and don’t ask me to do it again, but, in the case of Allie, I just said, you know what, I would wager to bet that if I gave you $11 an hour, for those other 20 hours, and you could just come into my office and make offers, that’s $220 a week. I’m pretty sure that
after like 60 or 90 days some magic would happen, and it did. Right, so, tell everyone
about your first deal, your first wholesale. – Well, and it didn’t happen right away. It didn’t happen in 60 to 90 days. It was a process, it was a learning curve – How long did it take you? – It took about, what 6, 7 months, until. – Now what would you say
to somebody watching this, who wants to get started wholesaling? What would you say occurred
during those 6 or 7 months, the learning process for
you to get to the point where you are able. – Oh, the learning process. It was strenuous. I had to, I was pretty much analyzing these numbers of the homes, up to like, I would say, 50 a day, 50 homes. And that’s all I did
all day was go through the numbers, go through the comps, and really understand what’s a deal and what’s not a deal,
and it was very difficult. – Do you think you were
maybe over analyzing it? – I’m a very analytical person, so I take things next step in analyzing, especially when it comes to numbers. So, yeah I was over analyzing. – Okay. – And I don’t learn, like so quickly. So, I would say that
it was a hard process. And I think that anyone, who is successful at wholesaling, that I’ve spoken to goes
through those periods of time where you really just want to quit. – Absolutely. – Every day you want to
quit and you get frustrated, and there’s moments of doubt, because it’s six, seven months and you’re working eight hours a day. And then I was working on the weekends, eight hours a day, sometimes more, sometimes nine or ten, and
I wasn’t making any money. – Right, and that’s very common guys, it’s very, very common, to see, a four to six month learning
curve, until the pieces start to fall into place. Unfortunately a lot of people quit during those four to six months. Alright, so now let’s fast forward, tell me about like your first
time, your first wholesale. – Okay, so my first wholesale deal was this little house in Deerfield Beach. It was, I had bought it
for, I want to say for $93,000. Was that right, or $97,000? – I think you bought it for $96,000 and sold it for $101,000 $96,000 and then I sold it for $101,000 – I’ve got this kind of
memory for what ever reason. – He has a good memory. – I can remember every single property. I could even give you the address of that property right now. So you bought that for
96k and sold it for 101k $101,000 for a start – Okay, so that was 5,000, and then your next deal was
the one in Miami Gardens? – So, that was $5,000,
and then my next deal, right after that was Miami Gardens, and I happened to find a good deal. – And now, just backtracking a second. The first deal, in Deerfield Beach, where did you find that? – I want to say that
I found it on the MLS. – So it wasn’t on like Hubzu or anything. – It wasn’t on Hubzu or anything. I found it on the MLS, and I put in an offer with the agent. – So you just called the
agent and made an offer? Okay, and then on the second deal that you found it in Miami Gardens, the one that you bought
for $150,000 and sold for $159,000 where did you find that house? – Again, I found it on the MLS, and I gave an offer to the agent, and I remember the agent calling me, and saying if you waive all inspection, and send me $5,000 check right now, a $5,000 wire now to the title company, then we’ll take your offer,
and I looked at it quickly, and I took the gamble, because I felt that it was a good deal. And we sold it right away. – Okay. – Within the first hour. – Alright good, wow so we put it on the email, blast, and sold it. Alright and then from there I think you went into your next deal was in Port St. Lucie I believe, right? – Yes, my next deal was in Port St. Lucie. – Uh huh. – My next my next few deals I think were in Port St. Lucie. – And how were you finding those? – Port St. Lucie ranged from agents, that I spoke to, and they
would give me a house, and, because I spoke to them, and I bought the house from them, and I’d give them both
sides of the commission. – Okay so that’s a key point, right. Giving them both sides of the commission. – Because that’s what they’re working for. So I get it from them, and then I got a few from HUDHomestore.com – You got actually a
really big deal from HUD. There was the house that. – I got a huge deal from HUD. – Yes, that was the house
you made like $29,000. – $29,000 on one flip. It took me, I’d say an hour of paperwork. – Wow, so you just went
on HUDHomestore.com you found a house, you bid on it, you got it, for I think
$80,000, and sold it for $109,000 – I got it for $80,000 and sold it for $109,000 – And you got a commission. – Plus I got commission. (laughing) Plus I got over $3,000 in commission. – So you made almost $33,000? – $33,000. – Wow, and that was a wholesale. Alright, and then from there
you got some capital together, I know you had a few others, you sold that house in New York to me that I ended up rehabbing, and I made a nice profit
on that, so thank you for that. – Of course. – And you sold also another house that was also on Parish
to my student Adam. – It was a different Parish, but. – Okay, and he still
owns that as a rental, he refinanced, and he’s got like around $30,000 equity in that house. And then you decided to
move into fix and flips. – Exactly. – So tell me a little bit about your first fix and flip. – My first fix and flip, I
found it on HUDHomestore again. – And that was the first house
you bought on Bridgeport? – It was the first house
I bought on Bridgeport. – So again, a HUD property as well. It was just listed
HUDHomestore.com, alright. – And it didn’t need much work. It didn’t need the kitchen or
the bathrooms to be redone, so it was a lot of floor, and paint, and the fun stuff really. – Okay. – And I had put, I think
I had bought it for, somehow you remember the
numbers better than I do. – You bought it for $98,000
you sold it for $149,000 – And I put $12,000 in, 11k or 12k into it. – I don’t remember how
much you put into it. – Okay, so that was about. – So I made I think. – Let’s see 50, it was about $30,000 or so. – Uh huh. – Okay, very nice. And that was your first fix and flip? – And it went pretty smoothly, it was a pretty easy fix
and flip for my first one. – Right. And they don’t all go so smoothly. – No they didn’t all
go so smoothly at all. – And then after that, you
did, what like a total of, four fix and flips, including that one? – After that one I did four. I did one, and then I did two at once, and I did four at once. So that’s seven. – Ah, so a total of seven fix and flips? – Yeah. – Okay, and now, so you
came down from New York, what, a couple of years ago, and now you got your real estate license, you’ve done wholesales,
you’ve done fix and flips. So, you were making $11 an hour, and you stopped doing that to
go into wholesaling houses, and I think we actually have Allie now at one of our presentations, where we show in a period
of like eight weeks, she had closings for
$52,000 worth of profit. – Uh huh. – Going from just making $11 an hour, so pretty substantial,
and how old are you now? – I’m 26. – 26.
– Getting old. – Only 26 years old, so. So basically, what advice
would you say for somebody who’s watching this right now, who’s thinking about
getting into wholesaling. And, hey they could be your age, or they could be your parent’s age, – Uh huh. – What advice would you give to them if they were watching this right now? What would you say, what
would you recommend? – My number one recommendation for advice would be, invest in your education, because, you can try
and do it by yourself, and you can read the books, and of course those are amazing, but you make
a mistake in this business, and your mistake costs you money, and you can lose a lot of
money from those mistakes. – Yeah, absolutely. – If you don’t invest in your education, what ends up happening is you lose way more money in mistakes,
and the education, it pays off. So I would say, number
one is to get a coach, or get a mentor, go to some bootcamps, anything you can to educate yourself on what not to do not to lose your money. – Uh huh, alright, very nice. Okay, Allie, I want to thank you for taking the time to come in. – Of course. – And share your story with everyone. And I know you had a busy day
today, so thank you for that. And, guys, if you are
watching this right now, and you’ve never flipped a house, but you want to, then watching a story like this with Allie, who
is only 26 years old, and has done seven, eight
deals, over $100,000, no, more than that. – More, it’s more like over $200,000 – Over $200,000 worth of profit right, including the fix and flips, that should give you the motivation to realize that you could
be doing this too right. So, if you want to flip houses, there’s people out there
like Allie that are doing it, and me, and if you want to get started, then just do it. Just go for it.
– Get involved.

One thought on “Wholesaling Real Estate and Flipping Houses | Interview

  1. I like lex levinrad

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