Building Back Up To 30 Deals a Year (long)

Building Back Up To 30 Deals a Year (long)

Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes

I’m getting my act back together and would like to show anyone that is interested how I am doing it.

My wife and I have been real estate investing for 8 years in San Antonio, TX. For the last several years, we’ve typically bought and sold between 25 and 30 houses a year. Our exit strategy is mostly to fix and flip retail, but also sell some houses with owner financing for long term cashflow.

Here's what happened and what I am doing about it:

Last summer my family took a vacation to the west coast. We went from San Diego to Seattle over three weeks, stopping in the major cities and San Simeon. What a beautiful place (the west coast in general).

Seeing Howard Hughes’ “Spruce Goose†was on my list of things I wanted to do and so we visited the Air and Space Museum in McMinnville, OR. Seeing this place really rekindled my desire to learn how to fly. I’ve wanted to learn for the last several years since I had flown with another investor down the shoreline of Lake Michigan. What an absolutely amazing experience.

So, as soon as we got back, I started researching flying schools and taking flights with different instructors. For several months, all I was doing was thinking about flying. Investing took a back seat and I was playing "semi-retired".

I ended up passing my checkride in November and immediately realized (now that my brain was starting to allow other thoughts) that we had quite an inventory of houses waiting to be rehabbed. I would never wish rehabbing 6 houses at one time on anybody. We had some that were already finished also that were just sitting on the market.

The market got really slow over the new year and I was hesitant to pick up anymore, especially because I was so wore out from dealing with contractors and rehabbing issues (the hardest part of this business in my opinion).

Fast forward to the present, the houses are all finished and on the market and we are getting them under contract. I now need to fill by deal pipeline again.

I feel like I am starting over (I know it is not completely starting over) because what you experience today is usually a result of what you did the last 3-6 months.

I was needing motivation and was thinking about ways to make the process more exciting. :idea: The result is that I have decided to share, with whoever is interested, the process. I am going to show how I am marketing, documenting the leads that come in, my analysis, purchase, rehabbing and selling of the properties for others to read about and learn from.

I will be posting regularly on my blog (in signature) as I go along. Please join me. I would love to hear your ideas and feedback. It should be a fun ride.

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Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
15y

I also just fished reading your 7 Crazy Real Estate Investing Stories--very entertaining!

See this reply in the discussion

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  • Investor · Castle Rock, CO · Member since 2011 · 107 posts · 65 votes
    15y

    Hi Danny, Am headed to the blog right after posting this. I too am looking for insight on how to develop the "machine" you've obviously turned your rehab/flip business into. I would love to have the problem of 6 rehabs simultaneously!! Can't wait as a matter of fact.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y
    Originally posted by Bryan Scott:
    I would love to have the problem of 6 rehabs simultaneously!! Can't wait as a matter of fact.

    No, you don't! How about 6 wholesale deals simultaneously? That would be great. :D

    Hope you enjoy the blog.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    The Twenty Second week.

    Worked up a post about finding and approaching private lenders that shows how we found and built relationships with ours.

    Have you heard about Flying For Dollars?

    Crazy Realtor that is throwing out threats of lawsuits... oh the joys.

    What a week.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    The Twenty Third Week!

    Flipping Junkie VS Boss Hog

    2 more deals under contract. One is a little different than what I normally buy. The postcards I sent out last week have pulled pretty well and have already produced 12 leads (two since I wrote the post a couple of hours ago).

    We are also moving. Bet you can't guess where.

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    15y

    Congrats! So, how many deals are you up to after 23 weeks?

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    That would be 7.

    Have you been to the blog?

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
    15y
    Originally posted by Danny Johnson:
    That would be 7.

    Have you been to the blog?

    Yup, love the blog!

    You list the number of leads each week, but I've never seen a running total of deals...though I guess I could just count them as you write about them... :)

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Thanks, J.

    I really enjoy your blog as well.

    Guess it's not really obvious on there as to the number of deals. You're right. Sometimes hard to see things through others' eyes. :)

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Here we are at the twenty fourth week.

    Have to deduct one from the deal count as the oil deal went bust. That seller was weird and it appears that most everything she told me was blatantly incorrect and fraudulent.

    Have you heard of the Halloweenists? Neither had I until this week.

  • Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    15y
    Originally posted by Danny Johnson:
    Have you heard of the Halloweenists? Neither had I until this week.

    Hey Danny, been hunting houses all your life or what? And to think you're in Texas. I'll be in SA in October. No not hunting halloweenists. Might look you up. Carlos.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Carlos,

    You sure you don't want to hunt Halloweenists? Would be happy to meet with you when visit.

    I like your profile image. :) (figured I'd better mention that it is a car...just in case you decide to change it in the future :))

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    The twenty fifth week is now posted on the blog. Got another one under contract! :)

    Saw a crazy Christmas house in the neighborhood.

    We were also busy with the second rehab on the expensive house. Removing over 2000 sf of tile? What a mess!

    Carlos, Thanks for posting a picture of that car (really a thing of beauty).

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Nice.

    I think the percentage of leads from the web becoming deals is slightly less than other forms of marketing (more tire kickers), but the deals have been better, for the most part.

    Traffic is mostly from organic search though I do use Adwords (pay-per-click) also (which provides a small amount of additional leads).

  • Wholesaler · Dallas, TX · Member since 2011 · 294 posts · 152 votes
    15y

    Danny,

    I always enjoy reading your blog... thanks for taking the time to put it together.

  • Real Estate Investor · Spencer, OK · Member since 2011 · 5 posts · 0 votes
    15y

    Really nice blog. I love the theme & layout.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Thanks, Stinson and Jonnie.

    The twenty sixth week is now posted.

    Got 2 more under contract this week!

    Also, been working hard to find a new contractor as we have been having problems with our usual guy. This is very time consuming and I've been putting it off for a while now. Decided to write up a detailed post explaining how I go about finding the right contractor that I think it could be helpful for a lot of people.

  • Investor · Phoenix, AZ · Member since 2011 · 36 posts · 9 votes
    15y

    Looks like a great read. Thanks for sharing this Danny!

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Thanks, Jessica.

    The twenty seventh week has now been posted. The contractor quest continued through this week. Not something I really enjoy but is very necessary to operating a rehabbing business.

    Closed and posted details on the 'front yard stink' house. I've decided to sell that one with owner financing rather than wholesale it.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Twenty Eighth week.

    Contracted another one. This one was from a lead I received about 6 months ago. This one is from a guy that is moving out of the country and does not want the worry of having a vacant house.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Another week gone by.

    Finally found another contractor worth starting on a rehab. Have several houses that need attention at the moment, right in the middle of our move.

    Took a break to have a lesson in flying aerobatics. It was awesome. There were some similarities with getting started flipping houses that I soon realized. All on my blog (in my sig).

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Thirtieth week, amigos.

    Missed out on at least one deal while busy with our move. Really made me think more about opportunity costs and how much we give up when we get busy doing things that we should hire out.

    Found two more contractors and wholesaled a house. Got mooned by a scarecrow as well. There is a picture. (don't worry it is G rated).

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Thirty First.

    Another deal under contract. Will need to wholesale this one as I now have 3 wholesales being worked on.

    Details on the Perp house and the Flatulent house have also been posted.

  • Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
    15y

    Hey Danny! Its always good to see. RE blog from TX. I'm working on my 1st deal, and will be reading your blog from top to bottom over the next few days. If you're in dfw area, I'd Love to buy you lunch or dinner and pick your brain.

    Blogs like yours, j Scott's, and tom tarrant are more inspiring to get off the web and into the biz than y'all will ever realize.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Thanks, Shane.

    Congrats on working on your first deal. That one is always the hardest.

    I really appreciate that and am very glad that the blogs are helping people to change their lives. What an honor to be grouped with the blogs you mentioned. J and Tom are awesome.

  • Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Def Leppard house has now officially been flipped. $31k+ profit made. Not bad for a paint and carpet rehab.

    Also wholesaled the Audi house today. Shaping up to be a really good Thirty Second week.

    I also finally added the stats for where each one that we've put
    under contract has come from. It really does help to show what lead sources have been producing the deals, not just the leads.

    7 deals from website leads. 2 deals from bandit sign leads, 1 deal from absentee owner leads, and 1 deal from probate letter leads.

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