On this episode of House Flip Masters Holly is joined by guest Jackie Mendoza. Jackie got her start in real estate investing when she was in high school because her parents were involved in the business and she saw a lot of the process that went into getting properties ready to be sold and rented and saw the profits that could come from it. Her younger sister gave her the book “Rich Dad, Poor Dad” because she felt that the book described her perfectly. Jackie got a job in the corporate world that lasted about 1 year before she quit and got into real estate at the age of 18. When asked to share about her first deal Jackie recalls that she partnered with her chiropractor for a deal in Corona, in that deal Jackie walked away with about $45,000 and says that she was immediately hooked on the real estate business with that profit from her first deal.
Currently Jackie works in wholesaling, she says that she has done flipping and it is a love hate part of real estate investing for her. Jackie says that she likes the simplicity of wholesaling. Jackie shares the easiest deal that she has ever done where she walked away with $100,000. She had a client who was renting to her siblings and hadn’t been paid in 7 years. Jackie had a friend who was a realtor who had been approached by this client that wanted her house sold but did not want to deal with the people living in it; this was an off market deal. When the Realtor came to Jackie she told her she could have the deal she just needed to get the tenants out of the house. Jackie made a phone call to a leader of a group to discuss how to get tenants out of the home because she had never dealt with this situation before. She went to the seller and the tenants and talked to them and negotiated cash for keys to get them out of the house. Jackie says this was one of the easiest deals that she has ever done and the person who ended up buying the home after her made around $200,000. Jackie and Holly discuss that if it had not been for the relationship she had with that realtor she might have never come across that deal. Both women agree that networking is vitally important for your real estate investing business.
Holly asks Jackie to share her strategy in getting deals and Jackie says that she uses what her mentor calls Bird Letters are direct marketing. She sends out mailers that are not only quality but are also esthetically pleasing. She sends out 500 to 1,000 mailers a week to homes that are high end. She says that her mailers need to be tailored to the people she is sending them to, she does not mass send mailers to everyone she is strategic in her mailing process. Holly asks Jackie if she personally mails the letters out and Jackie says she does not she uses an intern who created a font that looks like handwriting and they product the letters themselves. While Jackie says that her envelopes and supplies for mailing are higher than most but she wants to make sure that she is sending out nice mailers that reflect the business that she is running.
Holly asks Jackie if she knows how many calls she gets per mailers that she sends out. Jackie says that out of 100 mailers that she sends they will get about 4 to 5 calls and they will get about 1 deal from those calls; these deals aren’t always people who are ready to sell now, they will sometimes have people who will be ready next year or in a few months and tell Jackie they will keep her letter because it caught their eye with how pretty and different the letter was.
Jackie prides herself in taking these calls herself because she wants to get a feel for the person on the other end of the phone.
When Jackie gets these people on the phone she has to come up with solutions to get the deal, Holly asks her to share what kind of creative solutions she has offered potential sellers. Jackie says that she offers potential sellers lease options, cash, or various different terms based on their situation. Jackie finds that a lot of people will immediately put up a guard when they hear the word real estate investor and she reminds us that it is important to listen to what the seller wants and to work with them to make the deal work for both parties involved.
When asks what the most frustrating part of being an investor is Jackie says that her most frustrating part was contractors but since she was switched to wholesaling she has eliminated that frustration from her business. She felt they were the most frustrating because they lack consistency. She also has come across recently sellers who say they are sellers but they aren’t actually the seller. She is learning about fraud and how to handle those sort of situations. Holly says that she has never encountered anything like this and is surprised that there are people who do this sort of thing with properties.
Holly asks Jackie what she likes best and what she finds most rewarding or fulfilling about the real estate business - Jackie says that her mentor approached her about teaching and her mentor told her that the way you learn more about the business is by explaining it. Jackie decided to take on this challenge by hiring on interns who work for free in exchange for real estate education from Jackie. Last year Jackie had a total of 3 interns and 1 student and she says that it was completely eyeopening and life changing because in real estate you aren’t just taking yourself to the finish line when you are helping other people succeed in their goals and dreams. She loves to see people succeed by way of her help.
Last year Jackie also co-wrote a book “Three Feet From Gold” which discusses the struggles that people go through when it comes to not working in corporate America and wanting to make your own hours and be your own boss. Teaching and writing has opened up a new world to Jackie and it has also allowed her to meet new people and grow her network.
Holly asks Jackie to comment on what it is like to be a woman in real estate. Jackie says that she finds that being a woman in real estate that there are times where women don’t get taken as seriously as a man would in this business and she finds this being the biggest challenge. She sometimes finds advantages to being a woman in real estate because sometimes sellers want a woman to help them with their home; especially when she is working with a husband and wife. She says that regardless of being a woman she wants people to realize that she has the experience and she is there to get a job done.