On this episode of House Flip Masters Holly is joined by guest Connor Steinbrook. Connor is a world class poker player and in 2011 when the government shut down the big poker websites his income was shut down overnight. Connor stumbled into real estate and went $60,000 in debt when he was doing his first deal but has since then become very successful in real estate.
Connor says that he did not intend to be a poker player, he went to school in 2003 where he met Chris Moneymaker playing who introduced him to the online world of poker playing where anyone with money in their pocket could get online and win big. In a short time Connor ranked highly in the world of online poker and was making some serious cash. On Black Friday, as Connor calls it, April 15, 2011 the government stepped in and shut down the websites where the poker playing was going on at. Overnight Connor’s world was shut down. Connor says that he made a lot of money, but he also made a lot of mistakes and was spending his money as quickly as he was making it. When Connor had to face the job market he found that he was having a hard time finding a job because he was labeled as an ex-gambler, when he realized that he wasn’t going to get a conventional job he decided to make one for himself. Connor went into network marketing and didn’t like what he was doing; and insurance where he also didn’t like what he was doing.
Connor says that he was watching the flipping shows and said to himself that was something that he knew he could do. His favorite show and the hosts were in town and Connor decided to take a trip down to where they were to talk to them. While the hosts weren’t there, there was an opportunity to sign up for a bootcamp and a national training company where he racked up a bunch of credit card debt and found himself in a situation where he needed to get out of it. Connor likes to share his story with the world because he went from the top of the world to rock bottom and he likes to let people know that it is possible to get on top of whatever situation you are in to make your life better. Connor credits real estate to saving his life and turning it around.
Connor used Virtual Joint Venture Wholesaling to save his career. Connor advises that if you want to be a wholesaler you need to have a big buyer’s list and you need to let everyone know that you have it because it is easier to find people who need deals than to find that specific one deal that you are hunting for. For his first deal Connor was at an REI club and there was an individual with an ad for a property that was a better deal than Connor had ever been able to find and he knew someone that he thought was looking for a deal; Connor connected the person who was interested in that deal with the person wholesaling it. Connor says that he made only a little bit of money off that deal because he wasn’t as familiar with contracts as he should have been on that time. Connor stresses to listeners that while contracts might be stressful it is vitally important for your income and protection for you to understand the contracts that you are connecting people with.
Connor says that with Virtual Joint Venture Wholesaling he never visits the property, never meets the buyer, does not go to any showings of properties, the buyer does all of these things. Connor says that he puts in 3-5 hours per deal and the deals take 7-14 days to close, he says that he uses virtual assistants to do the work on these deals and from the closing of these deals he is making $2,500 to $25,000 per deal. Connor used Virtual Joint Venture Wholesaling to transition to house flipping he feels that this was the most effective and low risk way to make money so that he could start flipping homes. Connor calls what he is doing as an exit strategy because he is helping take homes that people don’t want or can’t sell and gets them sold.
Connor reminds listeners that as a wholesaler you are not a real estate agent and that you don’t need to be at the property to show it because the investor that is purchasing it probably knows more about the numbers than you do. Connor says the most important part of doing these deals is to do them as quickly and efficiently as possible. As long as you understand what you are doing and have a strategy for your business you can do this job from anywhere in the country.
Holly asks Connor what happens when he goes in on a deal with partners expecting a certain percentage of profit from that deal and something in that deal changes - does Connor spell out from the get-go what he expects to make on each deal or is it case dependent? Connor says that his JV agreements are specific on what percentage is expected before even going in on the deal with someone, while his assignment contracts are half a page long. Connor advises checking in your state and having an attorney help you draw up a document or even a title company that is familiar in drawing up these documents. He stresses that it is vitally important that you have your paperwork right so that you don’t get bypassed entirely and worked around by the buyer. Connor says that he knows that contracts can be scary but having a good one in place really is for your protection.
Holly asks Connor to share some mistakes that he has seen people make to share with the listeners so that they can keep them in mind. Connor’s first deal should have been worth more money than it was because as a first-time investor you doubt yourself and don’t know what is real until you see what has happened. Making your first makes helps to create momentum in your business and will propel you forward to do bigger and better things in your investment career. Connor says that typically it takes 3 to 6 months to get their first deal, people who get their first deal done more quickly really are just getting lucky - most investors have to really fight and work hard to get those deals. Connor reminds us that as long as you have a buyer’s list you have a business no matter how long it takes you to get that deal. Holly agrees that you need to set realistic expectations and understand that deals can often take longer than you want them to.
When asked to share advice for new investors interested in getting into this business Connor echoes Holly’s comment that you need to set realistic expectations. Connor reminds us that there is no such thing as successful people just being lucky, they put the energy and effort into their success the billion dollar company doesn’t just fall into their laps. Wake up every day and work hard until you are successful.
If you are interested in getting in touch with Connor you can reach him at his website www.InvestorArmy.com - You can also call or text (469) 855-6963 You can also email Info.InvestorArmy@gmail.com Connor also has a YouTube channel that you can check out
If you visit www.HouseFlipMasters.com you can find a download of Connor’s Key Points to Start Out in JV Wholesaling.
On this episode of House Flip Masters Holly is joined by guest Paul Moore. Holly was intrigues by Paul’s story of having $1.5 million dollars in the bank to $2.5 million dollars in debt and 13 months from that moment he freed himself of all his debt.
Paul has an MBA and an engineering degree. He worked at Ford Motor Company for 5 years before he realized he was dying there and wanted to become an entrepreneur. At the age of 35 Paul had become semi-retired but decided that he needed to keep busy and he decided to start flipping homes with his friends. Not heeding the warning signs of the real estate market prior to the crash Paul found himself $2.5M in debt in late 2007.
In January of 2008 Paul asked himself what would George Mueller do? George Mueller lived in the 1800’s and he was a man who cared for over 10,000 orphans. George also kept track of every penny spent and every penny that was earned. It is estimated that Mueller raised about $180M at that time just with his faith, Mueller never asked for money but had faith that his needs would be taken care of. Paul decided to try Mueller’s philosophy of giving and having faith that everything would work out as it was intended to.
Four weeks into his giving, Paul met a man in a restaurant who suggested that Paul use a certain law against itself to subdivide the land that he owned. When he took his plan to the planning and zoning commission it was approved even though Paul had found a loophole in the law. 13 months after he presented his plan he found himself debt free - Paul is convinced that had he not started this plan with faith and giving the path that he found himself on would have not presented itself. Holly reminds us that we need to ask the right questions to get the right answers.
Next on his path Paul and his partner would often travel to North Dakota and found that there was no places for the oil workers to stay - oil workers were sleeping in their pick-up trucks. Paul and his partner decided to build a facility where these workers could stay for a reasonable amount all while Paul could still turn profit from it. Paul mentions that later the facility was sold at the top price for the market.
While Paul has had great success, he also shares some of his less successful business ventures which have led him to creating his podcast called ‘How to Lose Money.’ On this podcast other entrepreneurs share their stories of money loss in the hopes that newer entrepreneurs and investors can learn from the mistakes that have been made.
One thing that Paul talks about learning from his personal story of loss is market selection. Market selection is half of the success of any type of commercial real estate venture. Holly agrees that market selection is a huge and very important factor.
Holly asks Paul to share his story about funding for human trafficking. When Paul saw what Tom’s Shoes was doing for children in third world countries he wanted to figure out a way that he could also make a difference in the world and in the lives of those less fortunate. Paul came up with the idea that when an investor invests with him part of the profits made off the investor will go to a foundation that the investor is passionate about. The investor gets to keep their entire return on their investment; it is a portion of the funds that Paul keeps that are donated accordingly.
Holly asks Paul to explain to listeners his involvement with human trafficking and what he is doing with his real estate investments to combat it. Paul explains that human trafficking generates over $150 billion dollars in revenue. Human trafficking prays on women and young girls and it is happening right here in the United States. Paul wants to help the victims of this modern-day slavery. Paul uses his profits from his real estate investments to give to foundations that help women and girls who have been victimized by human trafficking; foundations that give victims a chance to get back on their feet and also a safe place to live all the while not charging these women and girls any money to do so.
Holly and Paul talk about how flipping is a fun job but most people hope to not be doing it forever and investors should use the money from flipping to build your nest egg.
If you are interested in learning more from Paul you can check out his podcast ‘How to Lose Money,’ as well as pick up his book ‘The Perfect Investment: Create Enduring Wealth from the Historic Shift to Multifamily Housing’ Paul’s book can be found on Amazon or on his website www.WellingsCapital.com
You can also reach out to Paul by email at
On this episode of House Flip Masters Holly is joined by guest Buddy Broome. Buddy is one of many real estate investors who does real estate investing on the side. Buddy works full-time as an attorney and an investor he was introduced to investing as a young man in high school through his father. Buddy’s dad told him about the first property he purchased; his dad couldn’t afford to purchase a property so he approached the owner and asked if he could make payments on the property and the owner agreed because he knew that Buddy’s father was an upstanding, honest man who would pay for the propertu At the time Buddy felt that what his dad did was not the smartest way to invest but as he got older he says that his dad’s story taught him 3 important things. The first thing Buddy tells us is that his father’s story reminds him that you have to ask for what you want, second is that you can be a real estate investor with very little to no money, and lastly your reputation matters.
After high school Buddy went to law school and got a job with a big law firm in Los Angeles, he felt that the only way to earn money was to climb the corporate ladder and put away money into a 401K and eventually he would be able to retire comfortably. One day his wife introduced him to the book “Rich Dad, Poor Dad,” Buddy was not interested in what the book had to offer and felt that it was stupid. His wife left the book laying around and Buddy decided to check it out, 48 hours later he flew through the book and decided that he needed to talk to people and get the ball rolling because this book really spoke to him.
Buddy read the book and took some investing classes before he and his wife decided to purchase their first property in August of 2008. It was in September of 2008 that Lehman Brothers crashed and their dreams of becoming overnight millionaires were smashed. From that point Buddy and his wife had to change their lifestyle and become really frugal. When the crash happened all of the surrounding properties in his area had become very cheap and he decided that he wanted to make another purchase but was having a hard time with the income that he was generating.
Buddy was introduced to a group called FIBI (For Investors By Investors), the gentleman who lead the group, Ellis San Jose, offered to mentor Buddy and his wife on how to make investing work for them. Ellis then introduced them to two men, Gary Johnston and Clyde Wilson, who he insisted that Buddy and his wife take their class. Buddy says that this 3-day class changed his life. Slowly but surely Buddy and his wife have been building what he refers to as his ‘snowball’ - buying one property at a time.
Holly asks Buddy if he has ever purchased a property with no money down, and he says that he has. He learned about no money down in his first deal. In his first deal a third party investor asked him if he had the money, which they did, but he was told that if they didn’t have the money that they would find them someone who did for him. Buddy reminds listeners that when you are hoping to not use your own money down, that the deal needs to be a good one and worthwhile to the lender. If you have a mediocre deal it will be hard to get someone else to put their money down on that deal.
Buddy reminds listeners that when you are wanting to buy a property you need to not ask how much a house is, or how much money you can make on it but the most important question about buying a property is why is that property being sold?
As Buddy recounts for Holly one of the first deals that he made and all of the hoops he had to jump through to make it happen, Holly asks if Buddy was using a financial calculator during the time that deal was taking place. Buddy says that during the time at the table with the sellers Buddy did not pull out a financial calculator because he prefers to have the other party do the math to keep it as simple as possible and to make sure that the other party trusts him and the numbers that they have pulled up.
If you are interested in learning more from Buddy you can attend his all day class ‘Calculate your way Through Financial Freedom,’ he teaches you how to analyze life decisions as if you were an investor. You can find out more about his classes by going to his website at www.BuddyBroome.com On his website you can enter a giveaway from a rental property evaluation guide and an introduction to seller finance ebook.
On this episode of House Flip Masters Holly is joined by guest Tim King. Tim is the “King of Mobile Home Investing” and he got his start in mortgages before he got his start in mobile homes.
In the early 2000’s Tim started in the business of mortgage originations and was introduced to a family friend who had a mobile home dealership. Because of this relationship Tim found a niche because not many people were doing mortgage origination for manufactured homes. While admittedly these deals didn’t pay as much Tim found that he didn’t have a ton of competition so he kept at it.
In 2007 when the mortgage crisis hit single family lending slowed down slowly but manufactured housing Tim says literally disappeared in 30 days. Being a serial entrepreneur Tim saw that this was a problem and if he could find a solution to this problem he knew that there was potential for some serious profit. Tim started researching and learned about creative finance and also found a book called “Deals on Wheels” by Lonnie Scruggs. Tim had the education when it came to financing but it took this book to really show him how to use his education and his solution to this problem to make a profit. Since there wasn’t competition in this area Tim got lucky and this area of real estate investing really took off for him. All of the real estate education that he learned from real estate investing gurus about single family financing he was able to apply to mobile home financing.
After years of doing this for a few years Tim got frustrated with dealing with park owners because a park owner has to approve a buyer before Tim could sell the home - so Tim decided to start buying the parks as well so that he could control the full operation.
Holly asks Tim to share what location he is doing business. Tim is currently doing business in Southern California, in the South Bay Area. Tim is always being told that he can’t make this business work in California because it is too expensive but he finds that he is doing just fine and doesn’t want anyone else crowding his market if they are too scared of how expensive the market is.
Tim shares with us his first two deals, which he says were very crucial deals in helping him learn all about the mobile home business and also about the park owners which he refers to as the gatekeepers of the park. He admits that during his first deals he now realizes that he really didn’t know what he was doing because he had no idea the fees and expenses that went into buying a mobile home when you are preparing to sell it. Tim says that a park with a high space rent is something to keep in mind because that can definitely take away from the overall profit from the deal.
Holly asks Tim if he still dabbles in buying and selling of the mobile homes or if he is only interested in buying the land that the homes are on. Tim says that he isn’t as motivated anymore to buy and sell homes as he once was 12 years ago but he still buys and sells on occasion and does Lonnie Deals from time to time as well.
Tim shares that he gets a lot of his deals from direct marketing and he works with a handful of parks where he is friends with the management. He finds that sometimes management is the reason why he stays out of a lot of parks that are local to him. Tim unfortunately hasn’t been able to get buyers approved in parks that he previously did business in because the management does not understand seller financing. He also shares with Holly that one park he was doing business in previously had 3 real estate agents that live there that would go around and bad mouth him and his business and tell buyers that Tim was doing something illegal and because of this Tim has not been able to do business in that park because of those realtors that don’t like or understand what he is doing with his business.
Holly asks Tim to share how he transitioned from doing deals on individual homes to doing deals with the whole park. Tim says that he knew that he needed to be fully educated before he would be able to move from a single deal to a full park because if he didn’t understand ever facet of it he knew he would not be successful in the business. Also, again, Tim mentions that the transition from single deals to dealing with the whole park had to do with management because it was getting too difficult to get his buyers on their dirt because of the strict guidelines different managements had for the parks.
When asked about what someone needs to do to buy a mobile home park Tim says that there are bank loans out there but there is a lot of work involved in doing a bank loan and the government, Fannie May, is starting to get involved with providing financing to communities. Tim says that Lenders are looking for nicer products, they do not want to deal with parks that have dirt roads, and pit-bulls tied to the fences. While their is financing available Tim says that it might be more difficult to get it through a bank loan.
When asked what his best advice is for someone interested in getting into the mobile home business Tim says that it is important to get educated. Because the return on mobile homes is a small return you need to be really good at calculating and making sure that your numbers are on point. Tim also mentions that Gary Johnston and Clyde Wilson put on an event every year called Financial Freedom that he and Holly believe is extremely beneficial. While seminars can be expensive upfront but they will save you money in the long run.
Tim also mentions that there are a lot of real estate investors that he has been fortunate enough to learn from as well; people that he mentions are: Jack Miller, Jack Shea, Dyches Boddiford, Gary Honston, Pete Fortunato, John Schaub - all of which have been a wealth of information for Tim on his mobile home journey.
Tim learned a lot about what he is doing through a group called Mobile Home University and advises that he would not even entertain the idea of buying a park if you have not attended this event.
If you are interested in learning more about Tim he can be reached at TimKing2@gmail.com with any questions you might have for him.
On this episode of House Flip Masters Holly is joined by guest Mike Wolf. Mike has been investing for 27 years, Holly says that Mike is super laid back unlike most of the real estate investors who hop from one deal to the next. Mike is going to share with listeners his 27 year story.
Mike started in real estate entirely by mistake. Once upon a time Mike followed his mother’s dream of Mike becoming a lawyer - so Mike went to school and he racked up a lot of debt. Before going back to school he got a job at the phone company and that is when Mike bought his first property with no money down. Two years later Mike was still working at the phone company and paying off his student loans and the market started to take off and he found himself sitting on a good amount of equity. Mike admits that at that time he didn’t really love his job and figured that if he did this deal by mistake what would happen if he did it on purpose? Mike decided that he wasn’t going back to law school and also decided that he was going to qui his job at the phone company and continue to buy properties - so that is what he did. Mike didn’t want to take two years to get another property so he decided to fast track his property buying which ended up hurting him. Mike admits that at one point he thought he was a know-it-all and from mishaps with his fast track ideas he turned into a person who wanted to learn it all.
When Mike quit his job at the phone company working 8 hour days to working 16 hour days and was really starting to love his job until one day he started to not like the real estate business so much and was concerned that he didn’t think he could do it anymore and the passion started to disappear. It was at that point that Mike decided that he needed to figure out how to work smarter not harder so that he didn’t lose the passion that he had in real estate and so that he could get his life back. At that point he decided that he needed to hire people to help him manage his properties. At that time Mike was working in Canada doing everything but wanted to branch out in the United States which forced him to hire a property manager which he admits was hard to do because as an entrepreneur he wanted to do everything and entrepreneurs often have a hard time delegating work to other people. Mike found that by having a property manager they were able to do the job better than he would have been able to and in doing this he was able to get his life back. Now that Mike has all this time on his hands he enjoys traveling, spending time with his family, and volunteering. Mike says that he wants to help other entrepreneurs to get their lives back so that they can work smarter and not harder.
When Mike first started his real estate investing with a longterm approach and really purchased another property aside from the one he lived in as his retirement plan. Mike had quit his job and realized that he needed to get busy and find more deals so that he could make more money so that he could continue living his lifestyle and not have to go back to law school or go back to work at the phone company. Mike realized that he didn’t know what he didn’t know so he went out and networked so that he could educate himself and get those properties that he wanted and put his systems in place so that he could continue to make money.
Mike’s friends call him “The Homeless Millionaire” because he is always on the go staying in hotels and chasing the sunshine. Mike prides himself in not taking on any deals or projects that are stressful - he only does the deals that he wants to do. He enjoys teaching others about how to do what he is doing.
Holly asks Mike how his buy and hold deals work. Mike says that you need to have cash to do this but it doesn’t have to be your money. There are people who have liquid cash, or money in their retirement funds that are willing to loan you that money as long as you make the loan worth their while. Mike suggests offering 5% or 6% when using other people’s money.
Mike also advises that regardless of what you see on TV about house flipping it is not real and that very few people can do successful flips on a regular basis and there are a lot of things that can go wrong in any flip. He also advises that house flipping is generally not a sustainable business model for most people.
When you are borrowing money from other people you are creating a win-win situation for yourself and the person who is lending to you. You are building your portfolio and you are making that person more money on their retirement fund than that fund would make them normally.
When Mike is looking for a market he wants to check if the property is landlord friendly or tenant friendly. Mike advises if you get a bad tenant in your home they can live there for a year or more if they know how to work the system and you can’t get rid of them. Mike looks at that first and foremost. Secondly, Mike looks at is how does he get rich in real estate? Will the property appreciate? Are their jobs in the market, is the population growing? Mike also looks for a market that is diversified. Lastly, Mike looks at the 1% rule - how much money will you be able to generate? Mike says that if you don’t have the first two boxes checked off the third box will not matter and it will never happen.
Holly asks Mike to share his best advice for someone just getting into the real estate business and Mike says that he wants you to take a piece of paper to make 3 columns on it. In the first column header put ‘things you are good at’ and list all of those things, in the second column ‘things you are passionate about’ - even the things that you don’t get paid to do, and in the third column ‘things that are a good use of your time’ - even if these things do not generate income. Mike says that if what you write down is not in all three columns then it is not something you should be doing you should think you’re good at it, be passionate about it, and that it is a good use of your time. Do the things you love to do and should be doing and delegate everything else.
If you are interested in learning more from Mike the best way to do this is to attend his Master Class - you can text the word ‘LIFESTYLE’ to 7200 and you can attend this Master Class webinar for free.
You can also reach Mike by email at Mike@MikeWolfMastery.com he can send a link to his properties and you can get on a strategy call if you want to get involved - Mike is willing to help anyone with real estate and lifestyle all you have to do is ask.