Buying Multifamily Properties While Working A Full Time Job

0:00The experience that you had finding these off-market deals kind of LED you into to wholesaling and did you just decide to quit your job at that point or was there a milestone you set up and you're like okay if I can start creating consistent x amount per month then I'll feel comfortable leaving the software engineering job yeah very good question so I think I was you know I quit my job 2021 during pandemic it was the the the time that I won I feel like financially I was prepared to basically leave my job it wasn't exactly it hasn't the money that I make from real estate passively hasn't

0:49Exceeded what I would make from my software engineer job but I feel like I I was able to live off that income comfortably you know so that's one factor that helped me give that security to me to to leave the job and then I think the second was really it was my current business partner that he approached me saying hey we're thinking about starting a wholesaling company would you like to join us so I met him of course you know he's the end buyer cash buyer or whatever you call it so I know him from wholeselling deal to him so there

1:38Was already pre-existing relationship business relationship there just over the years we doing business a little bit more he just we kind of understand each other more and then so he brought it I was like I think this this is time yeah yeah the two factors like really okay I think I'm ready and plus I you know I just I was not getting satisfied from working a in a software engineer job yeah yeah and so initially you were doing both at the same time for for a few years what and you're just focus on your area right which we didn't even mention is is L Rock Arkansas yeah little r Arkansas so very affordable yeah

2:26Yeah but you know a lot of people think you got to wholesale Nationwide but you've been able to support yourself just from that area so how how are you bringing in deals and what's your like I guess average amount number of deals per per month right now we're doing about four to six deals a month we we do marketing on the text text messaging we do cold call we do SEO we do a little bit of a TV ads as well so like really four channels sometime we buy Lees from the from internet as well like company that provides Le to you usually from from their paid marketing channels like Facebook or U their paid U PBC paper click

3:15Got it okay yeah and how many text messages and cold calls are you doing on a on a weekly or monthly basis I'll say daily bringing it daily will be easier to to to think it's a so I got two two V8 on that's doing the text messaging so they send about 2,000 text messag a day and then got two two other vas working on Co calling well actually one working on a Cod call and then the others mainly just do a followup from our crms that C call is roughly about five 3 to 500 calls a day so so that'll be a break up and of course the the other VA just does the

4:04Followup that's their main task and see if there's anyone that's their motivation has changed timeline changed and see if we can you know make a deal happen there nice yeah and so a lot of people are probably like wow 200 a day text messages you're going to run out of people quickly but you just then can recycle right and go back and it's right takes a lot of touches right so what you know I I really thought about that because and and the the the list the list how you manage the list because if you want to do it at a volume at a predictable Revenue level you know what like how many deals you consistently do you have to have a like a system in place a structure in place so and it also you don't want to and keep resk res

4:52Skip trace the same per you know list or people because a list between two lists there might be over overlap of the you know duplicate of the same contacts right so just to reduce that the cost of skip trads and increase the efficiency really we just like we pretty much skip the the whole Central Arkansas once and and then just store it in a database coming from a software engineer background does help me put put yeah put putting you know those things in the database and then just kind of recy the you know the the list and people that I reach out to really helps the the the the deal prediction and the

5:41Volume prediction there got it okay and the average size of your wholesale fees or what I would say 7 to 8,000 right now okay yeah cool so you got four to six of those coming in so people can figure out the math on that and then in addition to that you've got re Vue coming in from your personal house you mentioned as well right portfolios yeah so those portfolios right now I have of course I do do my house hacking and then three short-term SL midterm rentals and then the rest are kind of like a long-term long-term rentals but really it's not pure lease it's like a solar fance selling those property households that's also passive

6:30Income side I'll would say on the portfolio really like active side is the here BNB I think is had a lot of well you're the expert on this so I just hire cash flow yeah and that's that's really I'm trying to work on as well just the money that I make from wholeselling and pour that into the next property that I can buy turn into a short-term or midterm r yeah just that's you know following your footstep so you kind of you you as you're wholesaling you'll just sort of take down certain ones for yourself then and use those as rentals yeah cherry pick I get yeah that does a great thing about wholeselling your own you know backyard you

7:18See the deals coming through your desk I mean other wholesalers send us deals as well yeah so yeah it helps a lot to to be able to pick and choose which which deal want to hold that's awesome yeah and so I'm I'm curious I think my audience would be curious how you do your house hack deal because I thought it was really interesting yesterday it's a little bit different than other people that I've talked to that do house hacks you're doing your actual how so can you kind of explain how you how you do that you know what's funny actually I didn't mention this earlier I while I was you know getting into I just I'm very risk averse kind of person so as I get into real estate I'm like back then I was learning but I wasn't doing much and then

8:07I forgot to mention I was slowly getting into this through house hack so the house hacking I was doing back then was really just you know have a friend that I you know find find his roommates I had a three best two bath house it's comfortable living space like 16 1700 square foot they each paid me like $500 a month so that's like $1,000 back then you know more than enough to cover my mortgage and some utilities too and then so as time goes by we you know I was trying to get again slowly eat into it Airbnb game is I

8:56House hack right combined with what I know bu a little bit house house hack and adding a little bit element of Airbnb so yeah we I was interested in Airbnb heard a lot of people you know realate investor do that and yeah so I back then I was thinking well well so Airbnb can make way more money than just you know run it out the room for long term so we started give a try you know of course like we took took a a course that's provided by one of our CR crms so that's kind of a free course I like learn it it's it's like okay these are tips and went live with our rooms and yeah so right now so that house

9:45It was this house we're living in so four bedrooms three bathrooms so we're able to rent out three rooms it gives a give us a revenue about $1,500 a month I so from from these three rooms right now on Airbnb yeah yeah so a lot of people with house hacks they will rent out a separate unit within their house that's what we used to do we had a finished basement and we put that on Airbnb and so we really didn't have contact with our our guests at all but you kind of were just like I'm going to rent out individual rooms which I think a lot of people are scared to do they're like oh I don't know who's staying there but it sounds like it's worked out really well for you yeah there's there's

10:33some challenges of course you know but in the end I think right now for for the left stage we're at it still makes sense I you know if I have you know family and kids I don't think we like like to share the space yeah so right now you know me and F say we're we're good so it much prefer to sacrifice the personal privacy in in the living area space sacrific that a little bit for for just you know more cash flow U so we're okay and of course there's challenge like you know come across people that a little bit loud you know a little bit different schedule getting

11:22Up and going bad going too bad and and that could become a disturbance for other guys as well oh