Everybody’s looking for good deals – and there’s money on the sidelines. You just have to know where to find them. One of the best deals you can find are those that are off market. But how do you find them?
In today’s conversation, real estate investor Dan Austin shares valuable insights into buying off-market properties and looking at renovation through the lens of capital expense.
After leaving the military in 2012, Dan pursued a degree in electrical engineering and it wasn’t long before he found his passion for real estate. He began BRRRRing ((Buy,Rehab, Rent,Refinance, Repeat) and the moment he began cash flowing $1,000 a month, he got hooked with it immediately.
Since 2020, Dan and his partner have owned over 40 doors, between single-family and multi-family, and have expanded their operations in other states. Together with his partner, Dan hosts the Collecting Keys Podcast, where they give listeners an inside look at what they do in their business day in and day out.
Here are some power takeaways from today’s conversation:
- From the military to the real estate world
- The shift to off-market deals
- Short-term vs. long-term deals
- Using their systems and processes to expand to 50 other markets
- Looking through the lens of capital expense
- The two elements in finding off-market deals
Episode Highlights:
[20:23] Short-Term vs. Long Term Deals
Figure out how you can reduce the risk around short-term investments such as when you’re flipping. Instead of trying to take money off the table now, look into how you can protect those dollars through an asset, knowing that there’s a good chance that inflation or appreciation is going to kick in.
[22:30] Looking Through the Lens of Capital Expense
Look at things through the lens of what the property is going to look like in five years. You don’t want to own a property and come back to it in five years seeing all the work that needs to be done. Maybe you need to replace the furnace or the electrical system, or you’ve got to do the roof.
Instead, if you’re going within 6-12 months – whatever the criteria for that property is – spend the money now and make it very structurally sound. Do a robust rehab now and that’s going to save you down the road.
[20:19] Where and How to Find Off-Market Deals
To be successful, you have to figure out the marketing piece, specifically, how you’re targeting motivated people . Find people with any sort of distress that could really use help.
The other piece is the sales piece. You can find many great deals. But if you don’t have a good sales team that understands people and knows how to ask the right questions, you’re never going to close those deals. Because it’s not a real estate investment company, it’s a people company.
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