Posted on: June 24, 2022
WI 980 | Buying Real Estate

 

On this show, you’ll discover how to take control of your finances and make your money start working for you. David Dodge is here to show you how to build long-term wealth and cash flow while paying less in taxes. You’ll also learn more about helping sellers, discounts and even abandoned homes.

Links https://wholesaling inc.com/rentals

Don’t Wait To Buy Real Estate By David Dodge

Episode Transcription

We know that finding discounted properties is the most proven path to financial freedom. Let’s face it, we all want financial freedom and security but few of us have been taught how to build long-term wealth while still earning an income. The truth is that owning rental property is the best way and the most effective way to increase your income and build legacy wealth fast.

In this episode, you’ll discover how to take control of your finances and make your money start working for you. I’m here to show you how to build long-term wealth and cashflow while paying less in taxes through owning rental properties. Stop trading your time for money and get off of the transaction treadmill. I’m going to be talking about a very simple mindset and that mindset is don’t wait to buy real estate. Instead, buy real estate and wait.

The Time Is Now

I don’t know if you’ve ever heard this before but this is one of my favorite sayings. It’s a play on words. It’s mixing up some words there but the meaning is incredibly important. I have people that reach out to me all the time. They say, “Dave, the interest rates are going up. The inventory is light. It’s low. Is now a good time to get started in this business?” Regardless if you are looking to wholesale, buy rentals or do fix and flips, it doesn’t matter.

The answer to that question is the best time to start anything, regardless if it’s real estate related or not, is now. The time is now. If you want to sit around and wait until there is a perfect environment, you will be waiting forever. Let me tell you that. There is never going to be a perfect environment. Rates are going to go up and down. Inventory is going to go up and down. These are cyclical items. They’re going to move and change with the economy, external forces like the FED, the government and policy, pandemics, diseases and plagues. Even wars are going to affect the real estate market.

If you sit on the sidelines and wait until the market looks like it’s a good time to invest, it’s probably too late because all the people that are investing now in market conditions like we’re having, where inventory is low and interest rates are rising and don’t go away are going to be well-prepared for when the market is a little bit healthier and looks a little bit better. Those who want to wait to get started until that time is going to be 4, 5 or 6 months behind those who are already in the game.

My advice to anybody that’s reading this, has read probably hundreds of other episodes and maybe even read some books or taken some courses online about real estate investing but haven’t pulled the trigger would be to get in the game now. At least at a minimum, start doing some sort or form of marketing to get your phone ringing.

Anything that has any value in life at any given time isn’t going to be easy.

Is it going to be difficult? Yes. Anything that has any value in life at any given time isn’t going to be easy. Anything that I have that I truly value, I worked hard for it or else I wouldn’t value it but the point of the matter is, do not wait and start right away. Don’t wait to buy real estate and wait. It’s important. I am glad that I didn’t wait to buy real estate and started whenever I was twenty because some of these properties that I own at the age of 37 are paid off. I’m young. I still got another 50 years, maybe more. I’m continuously buying properties and you should be too.

If you decide that maybe rental properties are not what you’re looking to do, that’s okay. It’s not the end of the world. Maybe you want to jump in and start wholesaling deals. It goes the same. Don’t wait and start now. Get that marketing out the door and start focusing on your time, efforts and energies towards getting started in this business.

If you start now, it may take you a couple of months to get your first deal. It took me four and a half. A lot of the other coaches here took them several months as well. Anything that you want that has any value is going to take a lot of effort. Start now. Stop sitting on the sidelines saying, “It’s not a good time.” It is a great time. There is no better time than the present. A lot of things can happen in the next months. If you don’t start now, how do you expect to get those good deal months from now? You won’t. If you don’t ask, the answer is no. You got to start and get in the game. Do not wait until we buy real estate and wait.

The Deals Are Out There

We do have low inventory and it’s been that way for several years where the inventory is low. It is hard to find a good deal but just because it’s hard to find a good deal doesn’t mean they’re not out there and you can’t find them. When my business was doing 10 or 12 deals a month years ago, we’re still doing 4 or 5 deals a month now and sometimes more.

Just because the inventory is low and it’s harder to find a deal doesn’t mean they’re not out there. What we do in the real estate space, regardless if we’re wholesaling, fixing and flipping or renting, when we’re buying deals, we’re helping people. That’s the goal. Find somebody that’s motivated. They’re typically going to be motivated because they’re facing a distress situation either in their life or because a property that they own is distressed. They don’t have the time or the resources to fix those properties.

Regardless, if the inventory is low or rates are going up, people are still having distressing situations in their lives. People still own properties that they can’t afford to keep up. As real estate investors, we come in and offer to help them solve some problems. These problems aren’t going away. The inventory might be low. The rates may be going up but people are still getting sick, laid off from their jobs or divorced from their spouses.

WI 980 | Buying Real Estate

Buying Real Estate: Owning rental property is the best and most effective way to increase your income and build legacy wealth fast.

 

People are still dying from natural causes. The heirs, family, spouses and children that are left behind have issues and problems. We, as investors, can come in and help these people. By helping them and offering to purchase the property and providing them with a high level of convenience, we’ll warrant a discounted property or deal.

Don’t approach the real estate market as I am looking for deals because if you have that attitude, it’s going to take you some time to stumble across one. If you have a different mindset, frame it differently and instead say, “I’m out here looking for deals all day,” start looking for problems. That’s what we do in our business. We don’t look for deals. We look for people that need help. They’re dealing with a situation in their life or they own a property that is a headache. It’s a problem for them. If they are having a situation in their life where the seller is distressed and it’s not the property per se, those come in all shapes and sizes.

Here is a short list of things that are happening every day. These are good things. These aren’t things that I wish upon anybody but they happen regardless of what I wish and want. People get into fights and get divorced. People have children and they need a bigger house. Their children leave and they want to downsize. People die. This is sad and it’s terrible. I don’t wish that upon anybody but I don’t know a single person that lives forever. Do you? People die. It’s a fact.

When they do die, the kids live 400 miles away and the house is trashed, that’s a problem. People oftentimes get behind on their bills and can’t afford to pay the taxes on their property or maybe can’t afford to pay their state, local taxes or federal taxes. They get a lien from the government on their property. Maybe they can’t keep up with the mortgage payments and they go into foreclosure, pre-foreclosure or something along those lines.

These are problems. Problems aren’t going to go away. The government isn’t going to mitigate these problems for everybody. They may be able to print some money and deliver a check in everybody’s mailbox but that’s a temporary solution. You have problems like death, divorce, disease and not being able to keep up with the bill, the taxes or the mortgage. You have people that are getting relocated for jobs. You have people that get into trouble and have to go to prison.

These aren’t good things but regardless of if we decide they’re good or bad, they still are happening. As a real estate investor, my job isn’t to go find a deal. That’s the effect. Cause and effect. The effect of me getting a deal typically comes from a cause of somebody having a problem in their life. That problem could be a personal problem or a problem with the property.

We don’t look for deals. We look for people that need help. That’s what we do in our business.

Helping People

As real estate investors, we are looking to help people. That’s the goal. When I come into the office and meet with my team, we do marketing, run appointments and make offers. The offers that get accepted are typically from people that have a problem and they see the value in the convenience that we are providing them by offering to buy their properties. Do I need to buy any of the properties that I bought in 2022, which are probably around 50 thus far? No. I have a home that I live in and I have a second home. I don’t need to buy these properties but for the right price, I love buying properties. I’m going to continue to buy properties.

What we are doing is we’re finding people that have problems and we are offering to help them solve these problems. In exchange for a discounted price on a property, we’re going to bend over backward and offer them the convenience of helping them solve the problem. There could be lots of problems. These problems aren’t going to go away. People are going to die. They’re going to get sick and divorced. Not everybody keeps a job their entire life. People get fired. They quit or moved to different cities. Lots of reasons and not all of these reasons are happy reasons. Let’s be honest.

What can make a seller happy and even make us happy is finding somebody who has a problem and us coming in and saying, “We don’t need to buy this house from you. If you give us a good deal on it, we will. We’ll pay cash, close fast and buy it as is.” I don’t know which one of those is going to be the most valuable to the seller that you talked to but I can tell you this. You’ve probably heard of the 80/20 principle, where 80% of your results are going to come from 20% of your efforts. Offer in seller cash, seller speed and offer the seller the ability to buy their property as-is. It’s going to make up 80% of the convenience that we’re going to be able to provide to the seller.

There are hundreds of things that we can do to make somebody’s life more convenient, selling a property or solving a problem in their life more convenient. At the end of the day, it’s the ability to offer them cash and close fast. That is a relative term. The ability to buy the property from them as-is, not requiring them to make any repairs, do any cleaning, painting or any of those things, is convenient for them.

For some sellers, the convenience they’re looking for might be cash. For some sellers, it might be speed, “I need the money next Thursday before I get locked up.” Maybe they have a distressed property and they don’t have the time, the means or the resources to fix that property up. Maybe they don’t care and they don’t want to fix it up. They want to unload a property that they didn’t even want to buy in the first place or maybe they inherited it.

These conveniences that we’re offering to people are what we bring to the marketplace. They’re valuable things that we can bring to get a seller to want to work with us. At the end of the day, we’re solving problems for people. If you’re going to bend over backward and offer somebody a lot of conveniences, you should demand a discount. That’s fair.

WI 980 | Buying Real Estate

Buying Real Estate: If you don’t start now, how do you expect to get those good deals months from now?

 

If somebody comes to me and says, “I got this property. The Zestimate is $200,000.” They say, “Dave, will you buy this property off of me for $195,000?” My answer to them is going to probably be no but in the event that I wanted to try to help this person out, I would say, “Sure, but I can’t pay you cash. That’s way too much. I can’t close quickly on this. I might need 6 to 10 months.”

If I’m going to pay you $0.97 on the dollar, which I don’t suggest you do but in this hypothetical example, you’re going to need to go in, fix it up, clean it, paint it, declutter it and get all this stuff out of here because it doesn’t make sense for me to pay that much. I’m going to lose money on this deal if I do that probably.

You have the ability to pull back on your conveniences, the value that you give to the marketplace if you don’t get a good deal or you’re not offered or presented with a discount but let’s say you have a scenario where you have a property that’s worth $200,000 similar to the last one. It needs a little bit of work but not a ton.

The seller says, “I could probably get more for this but I need this money right away. I need speed and I need you to pay cash. I don’t have time for appraisers to get in there and all these different contingencies. I don’t have time to fix it up but I’m willing to sell the property for $100,000 and it’s got an ARV of $200,000. Maybe you’d only need $20,000 worth of work.”

That’s a deal and a home run right there. I’m going to go out of my way to get my lenders or my cash buyer partners, if I’m wholesaling it, lined up to get this thing done and funded. I’m going to go out of my way to get the cash and use speed to get this transaction done. I’m also not going to care about the fact that it needs work. I’m going to calculate that into my formula but I’m not going to ask the seller or require them to do these things, declutter, clean, paint and fix. I’m not going to ask them to do any of those things because, in exchange for the convenience that I’m offering them, they are giving me a deal and a discount.

Don’t Wait

The point of this episode is don’t wait to buy real estate and wait. That is where wealth is created. Even if you are looking to do wholesaling and you don’t care about fix and flip or you’re not ready to start buying rentals, that’s okay but this still applies to you. That also means wholesale. Get out there, do some marketing and find some people that have some problems. Maybe it’s a problem in their life or property. Maybe it’s both. You can get out there, make a friend with these people and offer to help them. If they don’t want to give you a discount, they don’t want your help. Move on.

Money follows value. If you want to make money, focus on helping people and creating value.

If they are willing to give you a deal, you need to give them convenience. If you wait until the market is perfect, you’re going to be an old person when you get started, if not ever. Let’s be honest. The market conditions are never going to be perfect but if you start now, you start doing deals and marketing, it’s going to take some time but you will find a deal if you are consistent.

When the market conditions start to get a little bit better, you are going to be more than prepared. You’re going to be already doing deals and be in the business. Guess who’s going to have the most success when inventory and rates turn around? It’s the people that are already in the business and have already started years ago. Regardless of the timeframe, those who have been in the business or are already are going to get the best deals and make the most money when the market turns around.

Don’t sit on the sidelines any longer and wait. Get involved in this business. Get started. Get off the couch, pick up the phone, drive around and look for distressed properties. Poll list of vacant and absentee-owned, maybe divorce, probate, pre probate or foreclosure. There is an endless amount of opportunity out there. It doesn’t matter what the market looks like because things happen to people.

If I could end wars, death and disease, I would do it. I would give away everything I had to end it but unfortunately, I don’t have that power and I don’t think you do either. With that being said, things are going to happen to people. The people who are going to win, make the most money and create the most value in the marketplace are going to be those that are out there looking for problems. They’re offering to help those people solve those problems.

As real estate investors, the best tool we have to help people solve problems is to offer them convenience in exchange for a discount so we can get a good deal but at the same time, we are helping them solve a problem that they probably don’t want to deal with. Most of the time, I would probably say as much as 99% of the time, these problems are problems that come out of the blue.

Nobody wishes that somebody’s going to die or they’re going to get a disease but these things are going to happen. We can come in. We can be the good guys and help these people. We can offer to help solve their problems and give them these conveniences. In exchange for helping them and solving problems, we’re creating win-win scenarios or if you’re wholesaling, win scenarios for people. The goal is to help people.

WI 980 | Buying Real Estate

Buying Real Estate: Don’t wait to buy real estate. That is where wealth is created.

 

Money Follows Value

The goal isn’t to make money but when you help people, you create value and money follows value. If you want to make money, focus on helping people and creating value. Don’t focus on trying to go buy a property at $0.20 on the dollar. You’re going to spend a lot of time spinning your wheels, looking for that deal.

I can promise you this. If you find somebody who has a problem and you can help them solve that problem, you will get paid for your efforts. I’m going to say it one more time and I’m going to quit beating the horse here. You need to get started now. Don’t wait to buy real estate and wait. That’s where wealth will be created. If you’re not buying and wholesaling, it’s the same thing. Start marketing and offering to buy properties, even if you wholesale them to your strategic partners, cash buyers or local fix and flipper landlord friends. You’re still helping somebody else sell and buy a property.

These skills that you’re going to learn, gain and refine from doing these efforts, marketing, running appointments, making offers and closing deals are going to help you. When the market does turn around, you’re going to not only be prepared but you’re going to hit the ground running. Don’t wait. Get started now.

If you want to start buying rental properties, now is a great time to start buying rental properties, even with the rates going up. It may be difficult to find a home run or a grand slam wholesale deal in the current market but it doesn’t mean that they don’t exist. People are still going to have problems but we’ve been buying a ton of rentals because there are still deals out there. Even with rates going up, we can still make a profit on these rental properties and you can too.

One more time. Don’t wait to buy real estate. Buy real estate and wait. Don’t wait to get started in this business. Do it now. You’re going to thank yourself months or years from now when you’ve done 20 or 30 deals, maybe more. Maybe you even own a couple of rentals. If you sit around and wait for months or years and the market isn’t in any better condition than it is now, you have thrown all that time away. I would highly encourage you not to waste time because the time at the end of the day is the most valuable resource we have.

We can always make more money, learn a new hustle, help people out and get paid for creating value. What we can’t do is create more time. You are not able to do that. Stop squandering it. Get in the game. Get started. If that means to go partner up with another investor that’s already done some deals because you’re new, that’s what you need to do.

Get up, get off the couch, go to the local REIA clubs, meet the other investors, join the local Facebook groups in your market, learn what the other investors are doing and offer to create value for them. Maybe you’re ready to get started on your own, which is even better. Start marketing. Pick up the phone, call the for sale by owners, go drive for dollar, do some cold calling and send some direct mail.

Maybe you want to do a bigger type of campaign where you can buy a bunch of bandit signs, get on the radio or rent a billboard. That’s what marketing looks like. Get in the game. Don’t delay. You’re going to thank yourself in six months if you start now. If you don’t start now, in six months, you’re going to wish you did.

I hope that you’ve enjoyed this episode and found a ton of value in this episode. If you’re interested in creating wealth through rentals, using the BRRRR Method and achieving financial freedom in your life, go check out WholesalingInc.com/Rentals. Check out what the program is all about and schedule a call with my team. On this call, we’re going to discuss your real estate investing goals and how BRRRR Method Mastery can help you get there. I would love to help you get started, scale your business and get started generating passive income and creating legacy wealth with rentals. Every single one of you is capable of this and is capable of success. More importantly, you are worthy of it. Thanks for reading.

 

Important Links

 

About David Dodge

WI 980 | Buying Real EstateDavid Dodge is a real estate coach, author, and investor with over 17 years of experience. David specializes in using the BRRRR Method to acquire Rental Properties with NONE of his own money and has taught others how to generate passive income using his systems. He’s also the co-author of the book “The Brrrr Method” and currently has over 90 properties in his rental portfolio with a goal to grow to over 200 properties in the next 24-36 months.

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