Podcast 224 - Chris Clothier on Buying 17 Deals a Week

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Podcast 224 - Chris Clothier on Buying 17 Deals a Week

Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

On this week's podcast, Josh and Brandon talk to Chris Clothier. Chris shares how his company is buying up to 17 deals per week and how it's pretty much the same process as buying one a year. 

Chris also gives insight on hiring and building a business. Oh and just for fun, Chris has a 100-mile ultra marathon coming up. 

The podcast is available on all your favorite podcast apps, so download and listen today. 

Episode #224, Building a Process to Buy 17 Deals a Week with Chris Clothier .

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9y

Yeah Chris is definitely doing his thing in the turn key space. Haven't talked with him in awhile.

100 miles?? No wonder he stays so skinny. I still need to lose 30 but I am only running 5 miles at a time........ : )

I am really happy for his success. I remember when he first came on this site way back when and was a tiny company. He took a real beating from investors on turn key but listened to feedback and instead of playing a victim implemented ideas in his company to get better. Investors respected that fact they were being heard and his business started increasing exponentially.

It's amazing to see what he has done to date with it.

Congrats Chris!   

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Yeah Chris is definitely doing his thing in the turn key space. Haven't talked with him in awhile.

    100 miles?? No wonder he stays so skinny. I still need to lose 30 but I am only running 5 miles at a time........ : )

    I am really happy for his success. I remember when he first came on this site way back when and was a tiny company. He took a real beating from investors on turn key but listened to feedback and instead of playing a victim implemented ideas in his company to get better. Investors respected that fact they were being heard and his business started increasing exponentially.

    It's amazing to see what he has done to date with it.

    Congrats Chris!   

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  • Bill Regan
    Investor · Baltimore, MD · Member since 2015 · 160 posts · 76 votes
    9y

    That's awesome!  I remember Chris's earlier podcast, I'm definitely interested in his turnkey company down the road.

    2Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y

    @Mindy Jensen "Oh, and just for fun,...." LOL!!!!!!!!

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  • Andrew Tortora
    Investor · Minneapolis, MN · Member since 2016 · 33 posts · 13 votes
    9y
    Chris Clothier thanks for the podcast I got to listen to this morning. Congrats on your growth, sounds like you are building a great legacy for multiple generations. Thanks for sharing on BP to inspire us to be great. Please reach out if you don't mind me direct messaging you. Or I'll try another way.
    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Andrew Tortora:

    Chris Clothier thanks for the podcast I got to listen to this morning. Congrats on your growth, sounds like you are building a great legacy for multiple generations. Thanks for sharing on BP to inspire us to be great. Please reach out if you don't mind me direct messaging you. Or I'll try another way.

     Feel free to reach out to me Andrew on Messenger.  I will help however I can!

    Chris

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  • Andre S.
    Windsor, CT · Member since 2013 · 13 posts · 1 vote
    9y
    Mindy Jensen I noticed in the bp profiles underneath "goals", there is some repetition of the data.. check out Chris clothier's profile as an example. Why is that? I notice it a lot in profiles. Thanks
    1Reply
  • Nick Seymour
    Rental Property Investor · Yukon, OK · Member since 2015 · 1 post · 0 votes
    9y

    @Chris Clothier Great podcast episode. Oddly enough I just so happened to listen to it on a training run! I've heard great things about the Keys 100, will be nice and humid for you :) If you get hooked on them, hit me up as it'd be great to meet up at one in OK, KS, or TX. Rocky Raccoon 100 is a classic just north of Houston which I've run the past 3 years.  

    I just started investing last year and have one property in OK and just put contracts on 2 turnkeys in KCMO. Glad I heard the podcast as Memphis and Dallas are also on the radar for future purchases, so I'll definitely schedule a call with your company.  Good luck at the Keys and feel free to reach out if you have any questions or need any advice!

    0Reply
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y
    Chris Clothier I enjoyed the podcast, but not only because of the real estate info, but because of the motivational message.
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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Anthony Gayden:

    Chris Clothier

    I enjoyed the podcast, but not only because of the real estate info, but because of the motivational message.

     Thanks Anthony!  

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Nick Seymour:

    @Chris Clothier Great podcast episode. Oddly enough I just so happened to listen to it on a training run! I've heard great things about the Keys 100, will be nice and humid for you :) If you get hooked on them, hit me up as it'd be great to meet up at one in OK, KS, or TX. Rocky Raccoon 100 is a classic just north of Houston which I've run the past 3 years.  

    I just started investing last year and have one property in OK and just put contracts on 2 turnkeys in KCMO. Glad I heard the podcast as Memphis and Dallas are also on the radar for future purchases, so I'll definitely schedule a call with your company.  Good luck at the Keys and feel free to reach out if you have any questions or need any advice!

     Nick,

    Thanks for taking time to listen to the podcast.  I will absolutely be reaching out for some lead-up tips these last few weeks before the run.  This final prep is probably where I have the most questions.  Thanks again for listening and my families' company will be here ready to help however we can if you decide to check us out for passive, turnkey investing!

    Best to you -

    Chris

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  • Eric M.
    Investor · Weston, WI · Member since 2016 · 105 posts · 114 votes
    9y
    Chris Clothier , you briefly mentioned that you are exploring higher end deals that maybe wouldn't be as appropriate for out of state investors. It seems to me though that would be the exact type of deal I would be looking for as an out of state investor- a nicer property with "higher class tenants". Is it just a lower cap rate or are there other reasons you wouldn't want to offer these?
    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Eric M.:

    Chris Clothier , you briefly mentioned that you are exploring higher end deals that maybe wouldn't be as appropriate for out of state investors. It seems to me though that would be the exact type of deal I would be looking for as an out of state investor- a nicer property with "higher class tenants". Is it just a lower cap rate or are there other reasons you wouldn't want to offer these?

     Hey Eric,

    I'm personally exploring higher end deals because that is where my portfolio is today.  I have a base, a solid framework of median priced (for the market) investments.  I personally am ready to build my portfolio at prices points that are, in some cases, double the median price point and I am structuring them at break even.  Depending on how they are structured, these would be 2-4% cash-on-cash return properties with a higher opportunity for appreciation.  These are properties that without a doubt I am holding in a portfolio that will be transferred to my kids.

    An out of state investor may be interested in these types of investments, but not my companies traditional investor.  We do those 600-700 deals a year in a very particular box and our marketing and portfolio plans follow the guidelines of that box.  There are fewer investors out there today looking for an investment at these higher price points and we re not marketing for investors looking for these types of deals.

    To your point, we do have investors every once in a while that want these types of investments and in those cases, we will show them these kinds of deals and see what they think.

    Lastly, when you say higher class resident, you mean one that can afford higher rents, correct?  Trust me, rating residents as classy is impossible.  A resident paying $3,000 a month in rent can do just as much if not more damage to a property as someone paying $800 a month in rent.  As well, being able to afford a higher rent does not mean they will be any cleaner, pay any faster or treat a property better.  The stats tell us they do, but believe me, when they don't perform that way, it can be just as bad.

    So the reason for not building our business model on these properties is that a vast majority or investors are not looking for this and we are all about building an efficient business based on what the numbers tell us.

    Best to you ~

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  • Kenneth Dai
    Investor · Fairhaven, MA · Member since 2016 · 100 posts · 88 votes
    9y
    Great podcast episode, covering both business ethics as well as real estate. I'm always impressed when I hear Chris Clothier on one of these podcasts.
    1Reply
  • Rich Hupper
    Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    9y

    Are these off market deals? If so how many letters do you send out a month?

    0Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Rich Hupper:

    Are these off market deals? If so how many letters do you send out a month?

    We send anywhere from 1,000 to 3,000 letters per month per market, but a majority of what we buy are on market deals through the MLS or deals directly from our contacts at the realty companies. You have to remember that we have been in business buying homes in Memphis since 2003. We have an impeccable reputation for closing on our contracts and that goes a very long way in winning deals and being offered properties before they hit the market at times.

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  • Kathlene Griffiths
    Pinon Hills, CA · Member since 2016 · 18 posts · 4 votes
    9y

    I recently listened to podcast that had Chris Clothier on it. There was a lot of good tips and information. 17 deals a week thats awesome. I want to listen to that podcast now. I would love to hear the inside on hiring and building a business.

    0Reply
  • Kathlene Griffiths
    Pinon Hills, CA · Member since 2016 · 18 posts · 4 votes
    9y

    I recently listened to podcast that had Chris Clothier on it. There was a lot of good tips and information. 17 deals a week thats awesome. I want to listen to that podcast now. I would love to hear the inside on hiring and building a business.

    0Reply
  • William C.
    Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y
    Great podcast, I'm looking forward to see how big you are by your 4th podcast. I see how you find the deals you buy. I'm curious how you find so many willing and able buyers? I'm sure at this point it's a lot of referral based, but early on how did you find new investors and what do you still do now for marketing to out of state buyer? Thanks!
    1Reply
  • Tim Puffer
    Lansing, MI · Member since 2015 · 301 posts · 149 votes
    9y

    @Chris Clothier - Great podcast! Always good information coming from you. I have an opportunity to partner with family to invest - would it be ok to PM you and get your thoughts on doing that?

    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Tim Puffer:

    @Chris Clothier - Great podcast! Always good information coming from you. I have an opportunity to partner with family to invest - would it be ok to PM you and get your thoughts on doing that?

     Yes sir, feel free to send me a message!

    Chris

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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @William C.:

    Great podcast, I'm looking forward to see how big you are by your 4th podcast.

    I see how you find the deals you buy. I'm curious how you find so many willing and able buyers? I'm sure at this point it's a lot of referral based, but early on how did you find new investors and what do you still do now for marketing to out of state buyer? Thanks!

     Early on we did a lot of business with local investors who knew who we were as business persons and they followed my dad, Kent Clothier Sr. as he spoke at different RE clubs about how he invested.  When we really started ramping up growth, we started traveling the country speaking at RE meet-ups and club events, advertised in RE magazines and began sponsoring everything we possibly could.  We built a list of followers through our blog and posting on BP and then spent a lot of time putting on small events in cities all over the place where we had followers on our list.  We went to Chicago, Boston, New York, Boca Raton, Dallas, Phoenix, Sacramento, San Fran, Los Angeles - probably 10 to 12 cities in California and sometimes meeting with only 2 or 3 investors.

    But we kept at the traveling and commitment to go meet investors where they were and eventually the crowds grew into the hundreds.

    We also met and managed homes for the owners of Fortune Builders.  They are located in Southern California and are very active in the buy/fix/sell market on the West Coast, but they wanted to hold a portfolio.  They were holding in Connecticut and wanted a lower priced market with a management company they could trust.  In the end, they have purchased dozens of properties including properties for their family members and eventually were willing to introduce their clients to our company.  Having them as a partner was a big part of our growth as well as it introduced our company to a lot of investors who were looking for a passive investment along with their active investments.

    So those two things were the biggest part of our growth plan and as you can see today, we are still very, very active on BP, we are still traveling the country and putting on educational events not only for clients and their referrals, but also for interested investors and you are able to find our brand just about everywhere you look for passive investments.  So, we work our backsides off and stay hungry to keep getting better and that has led to demand that we get bigger and we could not be any more blessed.

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  • Duke Marquiss
    Fort Collins, CO · Member since 2013 · 134 posts · 74 votes
    9y

    Great podcast.  I am just trying to envision something that is scary enough to make me run a 100 miles.  Breaking it down into bite size to get it done is very visual.

    0Reply
  • Steve K.
    Honolulu, HI · Member since 2017 · 247 posts · 315 votes
    9y

    @Chris Clothier

    "We built a list of followers through our blog and posting on BP and then spent a lot of time putting on small events in cities all over the place where we had followers on our list. We went to Chicago, Boston, New York, Boca Raton, Dallas, Phoenix, Sacramento, San Fran, Los Angeles - probably 10 to 12 cities in California and sometimes meeting with only 2 or 3 investors."

    you left out hawaii

    :)

    1Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Steve K.:

    @Chris Clothier

    "We built a list of followers through our blog and posting on BP and then spent a lot of time putting on small events in cities all over the place where we had followers on our list. We went to Chicago, Boston, New York, Boca Raton, Dallas, Phoenix, Sacramento, San Fran, Los Angeles - probably 10 to 12 cities in California and sometimes meeting with only 2 or 3 investors."

    you left out hawaii

    :)

    No offense Steve!!  You are right, we even went to Hawaii to visit with investors where they live!

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  • Art Veal
    Investor · Chicago, IL · Member since 2017 · 8 posts · 2 votes
    9y

    Just listened to the podcast. I enjoyed the information. Thanks for sharing. Keeping your word in this business does go very far and at times keeping my word has greatly helped me make more money later down the road. Besides that, it's just good business.

    1Reply
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