Investing Made Easy Using Creative Financing Strategies
Bailey Kramer is a real estate investor, entrepreneur, and podcast host. He uncovered his passion for real estate investing when he was 19 years old after reading Rich Dad Poor Dad in his college dorm. Since then, he has focused on acquiring properties using creative financing strategies. He also co-founded an off-market real estate lead generation company that serves investors across the nation called Property Dogs. In his free time, he enjoys traveling, playing sports, and eating delicious food.
Bailey Kramer’s good real estate resource is Bigger pockets, he started listening to their podcasts and was just consuming information. He then began networking with people in the industry. He was interested in syndications initially. He would go on bigger pockets and look at everybody who had the title syndication in their bio. Fast forward, he started a podcast, a meetup group to expand his network further and share what he was learning. He also joined a mastermind group, to get a stronger network and a better learning experience and increase his education even more. Six months later, he partnered up with somebody he met through the mastermind group, and they began hunting for off-market deals. And that’s where they are today where they acquired eight properties in the last couple of months, focusing on creative financing strategies and the fix and flip strategy as well.
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Brett:
I’m excited about our next guest. He is out of the great state of Florida. In fact, he was just in Orlando yesterday touring some properties. We were laughing about that because we’re meeting for the first time today where I’m back in California. But our next guest is a real estate investor, entrepreneur, and podcast host. He uncovered his passion for real estate investing when he was 19 years old after reading Rich Dad Poor Dad in his college dorm. Since then, he has focused on acquiring properties using creative financing strategies. He also co-founded an off-market real estate lead generation company that serves investors across the nation called Property Dogs. In his free time, he enjoys traveling, playing sports, and eating delicious food. Please welcome to show me, Bailey Kramer. How are you doing today?
Bailey:
Hey, I’m doing super well. Thank you so much for having me on the show. Super excited to do it.
Brett:
Excellent. And you can learn more about Bailey Kramer at baileykramer.com. All right, Bailey, for our listeners getting to know you for the first time, can you tell us a little bit more about your story and your current focus?
Bailey:
Yeah, absolutely. So growing up, I always knew I want to do something business, something entrepreneurial. I just didn’t know what that was gonna be. So I’m still in college now. But last year in college I chose a major, it was a business degree. I didn’t exactly know what I wanted to do with it. So you know, sitting in my dorm, I said, Alright, I’ve always been hungry to learn. So I look up on the internet top business books, top personal finance books. And the one book that came up over and over again, was Rich Dad, Poor Dad. So that’s a classic for a lot of people that get started in real estate. But something that I read, and it jumped out right away. So read the book, I was super inspired by it. And my next thought from there was hopping on bigger pockets, which is another really good real estate resource, especially for those just getting started. So jumped on bigger pockets, started listening to their podcasts, literally in class before class after class. I was just consuming information. And after months of that, I then began networking with people in the industry. So you know, something I was interested in initially was syndications. So I would go on bigger pockets, and look at everybody who had the title syndication in their bio. And I just start networking calls and just learning and growing my network that way. Fast forward a little bit. I ended up starting a podcast, a meetup group to kind of expand my network further and share what I was learning with my network. And then I also joined a mastermind group, to then get even stronger of a network and a better learning experience and increase my education even more. So then, fast forward, obviously, this is the short story. But you know, about six months later, I partnered up with somebody I met through the mastermind group, and we began hunting for off-market deals. And that’s where we’re at today is we required eight properties in the last couple of months, focusing on creative financing strategies and the fix and flip strategy as well.
Brett:
Amazing, man, I love that you’re taking action. I love it. You’re still in college, and you’re getting a real education while you’re in college. We’re calling this episode getting a real education in commercial real estate with Bailey Kramer, not to say that you’re not getting a good education, what you’re talking about, but you’re getting hands-on, which we’re talking about here in a minute. That being said, Bailey, before we go there I believe we’ve all been given certain gifts in this life. And these gifts have been given to us to be a blessing help to others. So I want you to go back to your freshman year, your high school days, maybe the junior high days, and I want you to focus maybe on strength or gift that you believe you were given, and what is that gift or two and how does that help how you help and bless people today?
Bailey:
Yeah, definitely. I think one of the biggest gifts that I’ve been given is, I think one of my biggest strengths as well as being able to take a situation that I’ve gone through or also looking at other people’s situations, and taking what I really like and what I would want for me out of that situation, and then looking at what the negatives or something that I don’t really like about that situation is and kind of removing it from my life or you know, trying to avoid it going forward. So for example, there were certain things that I loved, there are certain things that maybe when I have a family, I would do different family reports, they’ve always been supportive of me, I’ve always had their support, they were always there. For me, the one thing that maybe I would change, and this is kind of what drove me towards entrepreneurship, and then the real estate was, I wanted to be in control of my time. So being able to have my own business, although, of course, it’s a ton of work on the front end, being able to build those systems, whereas when I have a family and you know, down the road, I’ll have more time freedom, and that’s something that I really seek out. So kind of, I guess, the power of being able to look at a situation and seeing what you like about it, and being able to actually implement that in your life. And then things that you know, you wish you could change is get a headset on that earlier sooner than later. That way, you’ll have a better chance of success.
Brett:
Yeah, I love it. That’s great. Those are great gifts, right, learning from others’ mistakes, but also learning from others’ successes, gleaning the wisdom from it, and then taking action. Is that a fair summary?
Bailey:
Very accurate.
Brett:
Okay, awesome. So let’s talk about those eight deals, this is really cool. Before we get there, I want to dive into the plan words in getting a real education in commercial real estate, right? So you’re studying, you’re in your dorm room, you’re reading the Rich Dad, Poor Dad, you get excited, you’re like, bigger pockets, tons of wisdom, actual people doing deals. And so you start taking action, right? And you, you get educated you get the mastermind, you just keep growing and learning. And so tell us about that first property that you did. What was the deal? What was it like? And what was the biggest thing you had overcome?
Bailey:
Yeah, absolutely. Great question. So that first deal was actually back in February of this year, my partner and I bought a property, our plan was to fix and flip it. We bought it for 85,000, we’re putting 30,000 into it. And we’re looking to sell it for around 170. So those are kind of just the numbers on the broad scope of things. So then how the actual deal came about as I mentioned before, all of our deals, except actually one have come off-market. So you know, there are tons of different ways we get into the off-market world of things, that’s a whole nother conversation. But we found a deal off-market. And there was a super motivated seller, the property is vacant, and he just wanted cash and to move on with his life with the property. So we’re able to raise funds for the full purchase price because we bought the place cash, and then we’re able to raise money as well through again, through the mastermind group, for the rehab cost. So that was kind of just the front end of the deal. Having those obviously the capital, super important on the front end, especially when you’re buying place cash, and you’re gonna fix it up, you need capital. So we had those boxes checked. And again, those were through networking, through the mastermind. And then I would say the biggest challenge with this one, but also the biggest learning experience was actually putting in some sweat equity and doing some of the work ourselves. So we did a few things ourselves on this project, the most challenging. Also, the biggest learning for myself, was we actually put insulation in the walls, the pink foam we spent a good full day and a half doing that throughout the whole house. And a huge learning experience. I’m not gonna lie, the inspector came the next day, we were there for inspection. Inspector was like, yeah, this is not gonna cut it. This is just not up to code basically. So just kind of having that learning experience of the key in. Luckily, he kind of walked us through you did this instead do this. So we had a big learning experience from that. And then also at the same time is we had the drywall, our drywall guys scheduled for not the next day, but the following day, so two days later, it was a super crunch time, because we had something scheduled if we didn’t have the installation done and that checked off, we wouldn’t have been able to push the drywaller back, which pushes everything back. So huge learning experience and just put in that sweat equity.
Brett:
That’s awesome. I absolutely love that you took action. He raised the funds, he bought it cash and use your mastermind or he worked with your mastermind to raise the rest for the rehab. And then you actually got hands-on you know my fault. The first deals that I bought, same thing, like we were literally like pounding walls with hammers if they break down a wall and redo the flooring, or do the countertops or do the bathrooms and but it’s this, there’s nothing like actually doing yourself to a appreciate it and then be able to know what to look for in the future. Or even in those pitfalls or you know that, like you’re saying, give yourself enough time in between the drywall are coming in versus, versus getting the code getting all checked off. So that is cool. All right. So you’re getting a real education there. Now compare that to sitting in a classroom, and you’re here, you’re a professor not that they’re doing this not doing this, or but there are even just even a webinar someone is telling me about it. How is doing it yourself? Maybe it’s pretty obvious getting a real education versus just hearing somebody talk about it.
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