Mike Hambright on The Power Of Mastermind Groups & Different Investing Strategies

FO 9 | Real Estate Masterminds

FO 9 | Real Estate Masterminds

 

Being in a group can bring more business to you and help you with different issues that you’re having within your business, and vice versa. Today, Paul Lizell interviews Mike Hambright about his transition from corporate America to running his own real estate investing company. Mike hosts his own podcast, Flipnerd.com, and created a real estate mastermind group called Investor Fuel. He talks about the advantages of networking within the group and how it can really grow your business.

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Mike Hambright on The Power Of Mastermind Groups & Different Investing Strategies

Real Estate Masterminds And Business Growth

In this episode, I interview Mike Hambright. A lot of you will know Mike Hambright from FlipNerd.com. He’s also a host of other different websites out there and he runs the Investor Fuel real estate mastermind group that I belong to as well. There are a lot of good friends mine in that group. It’s a real good, powerful group. He talks about the power of a group like that and how it can bring more business to you and help you within your business with different issues that you’re having and how you can help others with problems that they’re having in their business. He talks about how he got into real estate investing and where he’s going with real estate investing and what the future looks like here for real estate investing. You’re going to get a lot of good nuggets and wisdom here from Mike.

With me is a good friend of mine, Mike Hambright. Mike is big in the real estate industry. Most of you are going to know him. He has FlipNerd, which is a trademark and Investor Fuel. He does a million other things possibly out there. Too many brands but they’re all good and powerful brands and brands are important. Let’s start by getting into your background. How did you get into real estate investing?

I started in 2008 and before that, I always referred to myself as a corporate refugee. I’m a corporate refugee now. I left corporate America. I played the traditional game that they tell us to play, which is go to school and get a good job and all that stuff. Despite the fact I was the first person in my family, literally cousins and extended family really for the most part to even go to college. I grew up in a very blue collar family in the Midwest. I’ve got a degree in Finance because I was interested in Wall Street Investments. I have no idea why or where that came from. I had nobody in my family and my circle that had a role in that at all but I was interested for some reasons always.

I thought I was going to go to work in investments and I went to work for a large bank in Chicago. Ultimately, there were investments around us but for the most part, I was an auditor which is not the sexy part of finance at all, the bottom of the barrel. I was stuck in a cubicle in a sea of hundreds of people on the same floor that were doing what I was doing. You get to the point to where it’s like, “Is this all there is? Is this as good as it gets?” You start to see some paths of people that are in this role for two years, they usually go here. I’m like, “That’s not that cool either.” To see these paths of like, “What does my future look like?” I wasn’t super excited about that and decided to leave there. I moved to Dallas.

It was many years ago and then I went to work for Neiman Marcus, which is a huge retailer. It was pretty much it. I was a financial analyst, but pretty much in an auditing type role and entry level role. In the financial analysis department was seven people. It was four analysts, two managers, one director. I could see the next like 10 or 15 years of my career within an eye shot of where I was at. I was like, “This isn’t that sexy.” I was like, “I better go. I have to reinvent myself.” I was back to grad school and thought maybe that was the path. I got out of grad school and I ended up getting a job that I loved. It was a great job, but I got fired one day unexpectedly and that was because my boss had gotten fired and I was associated with him, so I got fired too.

That company was RadioShack. Over the next couple of years, 35,000 people lost their job. That was the first time I’d ever been slapped in the face with losing a job that I didn’t leave on my own. I went to another company and it was flying high and it was doing really well for a while. It was a startup but then they ended up filing for bankruptcy. At that time, my son had just been born, Jacob. At the time, he was two months old when that company filed bankruptcy. My wife, Lindsay, was a consultant and was doing really well, but she had left her job because we moved across the country for this other job.

It’s this realization of I have all this education, everything I’m doing was this struggle of trying to make myself look good so somebody else would hire me. I’m trying to please somebody else. I worked hard for them and then they let me down by letting me go or filing for bankruptcy. It was this realization the only way I can see going forward here is to have more control. That’s got to be by doing something that I’m doing for myself. That was the very beginning that’s a super short version, obviously of saying, “I needed to do my own thing.” In 2008, I jumped into real estate.

It’s a perfect time.

The truth is in hindsight, it actually was a good time to get in. Everybody around us that didn’t know that was a good time to get in thought we were crazy. They’re like, “The market’s falling apart.” We were in Dallas so it wasn’t as bad as other parts of the country. The truth is it was a really good time to get in, but the average person thought that was the worst time to get in. We dove in head first and ended up doing a ton of deals. Our first calendar year, we flipped 65 houses with no experience previously and dove in from there. I’ve gone on to do hundreds of deals and get involved in coaching. I launched FlipNerd and the Investor Fuel Mastermind and have a rental portfolio. Things get complicated as your business goes on.

It’s more complex, but it was the best move you ever made.

You should get in the coaching business because if you do the unsexy stuff, you can have a sexy lifestyle whatever. Click To Tweet

No doubt. I need to get one of these shirts that say unemployable because I’m completely unemployable. Not only would nobody want me, they couldn’t afford me that’s why. My opportunity cost is too high. I don’t need that drama in my life.

It’s funny because I love sports. I have passion for sports and everything. Unless I was going to become the general manager of a franchise, there’s no way they’re going to be able to afford to pay me to do whatever marketing. I’m going to be able to make more doing what I do on my own. Plus, I love doing this too. It gives us so much more freedom. I know it is truth. We are unemployable. Once you do this job, once you’ve had success in this business, you do become unemployable. When did you start FlipNerd? Was that around 2012, 2013?

FlipNerd started as a podcast. It’s right around Christmas time coming up here will be our six years since I started the podcast. Within a year, it went from a podcast to a really expensive website with all sorts of features on that I thought people would love. You could list your properties like the MLS for off market properties and we were selling small training classes for relatively low prices and stuff. I went out and built this thing that I thought was, “I’m going to be like the Google of the real estate investing industry.” Our businesses were doing so well, we sunk a lot of money into it. I learned the idea. I won’t say that I’ve learned it and that I always follow it, but there’s this idea of minimum viable product.

Make sure your customers want something before you spend a ton of time and resources building it. I didn’t do that the first time. It became this monster that it was so customized that it was a maintenance nightmare. We weren’t even making enough money to pay for the maintenance and costs and a small team to create content and stuff. We ended up rebuilding the site from scratch and throwing out a very expensive one away. We leaned into creating shows and writing blogs and putting good content out. That’s how it’s moved forward and coaching and other things that I do. I’ve been coaching for almost ten years.

Coaching is fun. It’s good experience. It’s rewarding and also frustrating.

It is both. In any business you have these days where you wake up and you’re like, “I’m going to 10X it now. We’re going big,” and then by lunch time you’re like, “I’m going to shut it down. I’m done.” The one thing that I love about coaching and I hate is you can’t want it more than the student wants it. For a long time, I was that way and I grieved a lot and I tell people like, “We’ll support you more than you need. If you take action and you get after it. If you don’t listen to what we say, don’t show up to meetings and calls and stuff, you’re an adult. I can’t force you to do that.” It comes hand-in-hand with what we teach as very tactical. How to build a real business? How to set up systems and processes?

The truth is that stuff’s not sexy, but this business is not sexy. If you watch it on HGTV, it looks sexy. The truth is it’s not sexy. You shouldn’t get into the business because you’re doing something sexy. You should get in the business because if you do the unsexy stuff, you can have a sexy lifestyle or whatever. Our buddy, Matt Andrews says, “Real estate is the thing. It’s the thing that gets you the thing.” I’m not as enamored anymore with flipping houses, even though I still do it. I love the lifestyle that it gives me, the resources it gives me to help influence other people and help other people and travel and do all the things that we love to do. It’s not taking an ugly house and making it pretty anymore. I like that, but I don’t do it for that reason.

A lot of people do get in there. Obviously, the HGTV thing is a big push. My middle son was watching it and is totally into it. He’s actually helping me with a couple of different properties believe it or not, fifteen years old with ideas and I’d take them through. I’m like, “Tell me what you think. What do you think we should fix? What do you think we should do with here?” His mind is in a super excited mindset like mine was 15, 20 years ago when I first got into this business. Now, I go through it and when I go through a property I’m looking at, “It needs this and this.” There’s nothing super exciting about it when you do it enough. It’s not a sexy business, but you can make really good money in this business.

That’s why we do it. It’s what it does for you or for your family or for the world. What you’re able to do? There’s things that we can do, whether it’s charity-wise or influence-wise or whatever that I couldn’t have done in Corporate America. All those things are the byproduct of ultimately flipping houses.

I’m hoping my kids get into the business. Hopefully, your son gets into the business too. I’ve got four of them. They all have different strengths and weaknesses so it could work out pretty well, but I’m not going to force any of them. If they don’t want to be into it, it’s totally fine. I’m hoping they do get the itch and get into it because this is a business that the sky’s the limit. You really limit yourself. You can get as big as you want to get. Kent and Chris Clothier, they do a great job there. I don’t have any goals to be where they are. I don’t think as many houses they flipped and as many businesses as they’ve ran, it’s too much. I want to keep it a little bit smaller so I could still coach my kids in sports and still enjoy life. Maybe when I’m a little bit older, I’ll ramp it up a little bit.

FO 9 | Real Estate Masterminds

Real Estate Masterminds: Make sure your customers want something before you spend a ton of time and resources building it.

 

That depends on what you want. That’s the interesting thing about it. I created a video because I have a big three-day event for coaching on people to come through. When I first started, the first few years when I was coaching people, I was doing a lot of volume. We were doing 75 houses a year. We were rehabbing heavily and had a big machine. Everything I taught early on was how to do what I had done. It hit me, my son got a little bit older. He got a little bit more business maturity. I met somebody and their goal was to flip one house a month. They didn’t have any staff and hardly any overhead. They were in a market where they make about $40,000 to $50,000 on the average rehab. They were like, “I can make $500,000 a year and I work for 3 or 4 hours a day max. Some days I don’t work at all and I don’t have any employees. I don’t have anything. I don’t have an office. It was super simple.”

I was like, “That is not so bad.” The problem is not so much HGTV, but a lot of the guru space makes it sound like your dream is flying on private jets and rolling around town in a Rolls-Royce. Most people don’t want those things. Most of us that get into real estate investing, not that if you want nice things you shouldn’t have them or you can’t have them, but its most of us end up being so frugal. We would rather put that money back into the business and grow it or pay down debt or whatever it is. It depends on what your goals are. At the end of the day, you should never get a mentor and say, “I want to be like them,” because the truth is everybody has a couple of asterisks next to their name and next to their P&L. You don’t know the whole story. There’s more to the story, I promise you.

For students that come in for me, I’m sure you have the same thing. You ask them what their objectives are and then you can work around those objectives. If they only want to do one, one a month is great. You could make good income doing that if you do a good job with rehabbing the stuff. Wholesaling it going to be different. You’re going to have to do a little more volume.

This is a common thing. We have people that apply for our coaching program and we ask them “What are your goals? What are you trying to accomplish over the next twelve months?” We ask, “What’s your compensation? What are your earnings?” A pretty common thing is that there’s people that are, “I make $60,000 or $80,000.” “What’s your first year goal?” “I want to make $1 million.” It’s okay to have big goals and I’m not saying that you couldn’t do that, but what I’ve found is there are some people that might be saying, “If I can’t make $1 million, I’m not going to do it.” I’m like, “Your alternative is making $60,000 in the job you hate.” For people that are reading, if you’re moving into real estate investing, everybody’s first goal should always be to offset your income and get there.

Almost any W-2 job, you can outpace the income in this industry, but that should be your first goal. It’s not, “I need to 10X my income.” It’s like, “Why?” You and I both know one of the benefits of having a business that does well is that flexibility. I live below my means. I make more money than what I need to live on and we live a nice life. There’s a lot of comfort in knowing that above a certain point, I’m playing with the house’s money. I don’t need that. I’m not in survival mode. Once you’ve offset your income, it allows you to take more risks. It allows you to try things and test things because you’re not worried about paying the bills next month. This is money that I can apply to testing or trying new things or starting a new business or whatever.

It’s given you freedom and freedom to do that. You’re basically buying time, the way I look at it. I’m working here to make as much as I can to buy time to do other things, to do this podcast. To now go and join the Investor Fuel Real Estate Mastermind and we meet quarterly. We met at another Mastermind before, Collective Genius and we were there for years. You were there for years and then you open Investor Fuel and invited me there. I’ve been there since the beginning. It’s an awesome.

As the founder of Investor Fuel, I have a dresser full of Investor Fuel shirts. We create new ones every quarter, but I don’t have one on.

If you wouldn’t mind go get into, whether it’s Meetup groups or Investor Fuel or for people who are new or starting out, local REI Meetup groups are great. Hopefully as you build your business, because there are people that I’m sure read this that have good flourishing businesses. I want to see how to get to the next level and a group like Investor Fuel can take you to that next level. Why don’t you get into that?

That’s what it’s all about and there was a progression for me. I was a sponsor at a local REIA club for many years. I’m in the Dallas market. I got into coaching and I’ve been coaching for ten years, but after I’d done about probably almost a hundred deals, I got into coaching. It was an opportunity to help other people and show them how I do things. It was a new business, ultimately it could make some money doing it or obviously for many years a lot of the financial benefit was by partnering on deals with people in my local market here. It’s like, “I’ll help you. I’ll teach you some things and let’s JV on some deals together and stuff.”

For me, leaving Corporate America and then getting into real estate investing, it was a little lonely. My wife, Lindsay, and I had a little bitty office. We had an admin and we had some acquisitions people and stuff like that, but the acquisitions people weren’t really in the office. When you’re in Corporate America, there’s always a happy hour or somebody’s birthday or you go to the holiday parties. It’s more social, depending on the company you work for but I was always at large company. There’s always a lot of social stuff going on, especially before you have kids. I missed the social aspect of it. The truth is social media wasn’t as prevalent. There were very few podcasts back even many years ago. It might have been not, I don’t know how many there were years ago.

Most people who get into real estate end up being so frugal. Click To Tweet

I know when I started mine, there were only 5 or 6 in the industry. Joe McCall had started his, Matt Theriault and Sean Terry. There were a few that had theirs, but now there are a lot of them. My point is there wasn’t as many social outlets so people felt a little bit more secluded because there wasn’t a lot of great stuff online yet. I started to seek out ways to be social so I can teach people what I know through coaching and I can have gatherings at houses and we can talk about our rehabs and have happy hours and talk about stuff. This goes back before I started the podcast. I hired a videographer to follow me around and record some videos so that I could put them online. I got tired of paying a videographer to pretty much sit around half the time and then have somebody follow me around all the time. I was like, “How can I create content online without having to have a videographer or have heavy editing or whatever?” That’s when the podcast started.

The podcast went from there. We’ve had a few different podcasts over the years and I run two now, but over the years, there were a couple of others that we had that have come and gone. Across the last many years, we’ve created a 1,500 video podcasts. It’s a lot of content and in the process made a lot of relationships with people. I knew you before that, but there are a bunch of people that I met on my podcast that were influencers that I had never met them. Through all those relationships ultimately is where I was like, “I want to create my own mastermind that has my own flavor to it.” I have a great network of friends now from all that I’ve been doing with FlipNerd. That was the birth of Investor Fuel.

Investor Fuel is probably as much a way for me to surround myself with people that I like and admire. Entrepreneurs are special crew. We’re willing to take a lot of risk, we’re willing to go all in on stuff. We probably have a bunch of arrow wounds on our back and the scars to show for our efforts and stuff. We’re not chained down by, “I only have two weeks of vacation a year and I use half of them on my kid’s sick days. I can’t travel and do the things like you do.” I want to be around people like me. That’s how it started. It’s gotten to the point to where people are coming into the group and it’s not uncommon for somebody to come in and double, triple, quadruple their business in a year from being in the Investor Fuel family. It’s not me per se, it’s the connections in the room that allow them to talk to somebody and I never thought about that or how do I use that resource to increase their business? It’s a think tank of people that are testing stuff. It’s a lab. We’re all testing stuff and trying it, “Don’t do that. I tried it and it didn’t work. Here’s how you should do it.” Those little tweaks that people can make to their business sometimes makes a massive difference on your bottom line.

It sure does and learn from other people’s mistakes. If somebody else messes up and this didn’t work out that well, why am I going to try it? Why would I do the same thing that already failed and potentially failed many times over? You may have a certain way you think you’re going to do marketing and then you talk to the group and you find out, that doesn’t work well. I should not try that. I shouldn’t do that. They’ll tell you, you should go try these lists. Try doing this. Don’t reinvent the wheel. If it’s not broke, don’t fix it. The odds are, if it works in one market, it’s probably going to work pretty well in your market too. Markets are different, but you’re going to have some similarities in these things. It’s been tremendous for that. The context, the joint ventures that go on in that group, it’s a great group. There’s not one person in that group that I don’t like a lot or have great respect for. They all do a great job.

People have to apply, we have to interview them and they want to see if we’re the right fit for them too. We talk to each other to make sure that we’re on the same page and we’re very big on giving in this group. It’s not uncommon for people to have their families are traveling together and they met in the group and stuff like that. We’re very big on being willing to give and share stuff. What I found is there’s a lot of real estate investors that have big hearts and are willing to give. When they go back home, back in the foxhole, a lot of times they are not able to share much with what they do because you’re not surrounded with people around you, back in your market when you come to these events.

Every event you come to, it pretty much feels a family reunion. Getting around your friends that you haven’t seen probably in a quarter maybe in a lot of instances. We’ve had people that are brand-new members that come and they bring a presentation because we have them do hot seats. This is a pretty common thing. If it’s their first meeting after they start to see some presentations they want to redo theirs because they feel there’s so much giving going on. They’re like, “I want to improve mine.” We’ve had that. That happens all the time with new members. They know what they were going to get and they get there and I owe this group more than what I thought I was going to give them because I’d gotten so much already.

That’s always fun talking to the new members because they’re always blown away and nobody knows what to expect. I remember when I went to the first mastermind group that I went to and the first meeting and it was like, “This is impressive stuff.” What some of these guys are doing is incredible. There are ten different ideas. I want to go and do this. I’m telling him, “No, take 1 or 2, your top two things and try to implement them.” If you try to do all ten, you’ll keep spinning wheel and a hamster cage and you’re not going to get anywhere unfortunately with it. You’ve got two different groups. You’ve got a gold group and you’ve got the platinum group. When I came to the last meeting, I came a day early and I got to watch the gold group. It was an awesome group. You’re going to see a lot of those guys send from the gold group to the platinum group. Talk a little bit about that because you’ve got the two different tiers and two different levels get in there.

What we decided early on actually at the very first meeting you were there that we had. It was clear that we had somebody like you that’s done over a thousand deals and then we’ve got somebody that’s doing fifteen deals a year. I was like, “They’re all great people, but they have different needs.” They have different needs in their business and they’re able to give differently. At that point, after that very first meeting, we broke the group apart into two groups, which we affectively call the platinum group and the gold group. The platinum group is people that are doing 50 deals a year more. There are people in the group like you that have done over 1,000 deals and it definitely people in there that do hundreds of deals a year.

The gold group is people that are doing 10 to 50 deals a year. There’s a whole bunch of people in the group that are doing 20, 30, 40 deals and in growth mode. They generally have different needs. For example, if you’re doing 50 deals a year or more and you’ve been in business for as long as you have, you get more value out of tax strategies and ways to preserve wealth and stuff like that. What is working in lead generation? A lot of people earlier on in their career or doing a lower volume, 10, 20 and 30 deals a year, they are usually smaller. Their teams aren’t as mature or if they even have teams that might still be one man band, one woman, band, husband and wife team or something like that.

They’re in growth mode. Their needs are usually different than what those that are doing higher volume is, but there are a lot of similarities. I’d say, at the day, a lot of people that are doing higher volume, for the most part, everybody’s needs are the same. I want to make more money, I want to work less. I need to find more leads and I am finally waking up that I probably need to find some ways to keep more money, wealth preservation than paying the taxes because I’m feeling the pain of that now. It’s all the same issues. It’s a matter of scale for the most part.

FO 9 | Real Estate Masterminds

Real Estate Masterminds: Offsetting your income allows you to take more risks to try new things.

 

One of the things you got into the last meeting there and I thought it was good and people were getting a little bit better with this and everybody wants more and more leads. You should actually rework the ones that you have. Some of those that you think that are dead leads are not as good. You can still rework those. I know that was a big part of the last meeting here and Larry Goins, I know had that. He’s new to doing a direct mail. Larry did normally what I do here, buying a bank owned stuff, but he’s doing a direct mail and got so much and had so many leads to follow up on that he actually turned a lead flow off. He turned out the direct mail so we can catch back up there and do that. Knowing that and people understanding, “I’ve got to work these leads a little bit more,” and also we talked about dive in deeper into your market rather than spreading out into new markets.

I’m not saying it’s not sexy now or whatever, but there’s definitely a lot of people that have gotten into virtual wholesaling. You do it. The more common thing is they were investing in their market and they started to feel it was too competitive so I’m going to go somewhere else. Their business wasn’t real sound where they were at even. When you try to take that virtually and manage people virtually and deal with all the problems with the virtual stuff, if you’re not buttoned up where you’re at, expanding is probably not the right thing. A lot of people have done that and they’ve realized like, “I’ve created a worse problem, maybe I should focus more on where I’m at and going deeper and getting to know the business better.”

It’s getting better systems, marketing and better with the follow-up and hiring and training people better within the business.

A lot of people have assumed that the grass is always greener. We hear at Investor Fuel or I heard it all over the place. They think their market is competitive and I’m like, “If you’re not in Dallas or Phoenix, you don’t know what competitive is.” Somebody will be in Columbus, Ohio and be like, “My market’s hyper competitive.” I’m like, “There’s no way.” I don’t know for sure, but I don’t think you understand that. People assume it must be easier to buy if I go off in some far off land. The truth is that maybe it is easier to buy, but it’s probably harder to sell in a lot of smaller markets. You trading a set of problems for another set of problems often.

I look at it as a bullseye. Let’s say Dallas is the bullseye. You start going a little bit further outside that ring and then a little further outside that ring. I’m buying one in Comanche, Texas, which is probably about an hour or an hour-and-a-half East of Texas?

I’d have to google it. I’ve never heard of it.

It’s out there. It’s a neat little town. There’s not a whole lot out there, I’d be honest with you, but I’m picking it up for $25,000 selling it for $40,000. It’s going to be a back-to-back closing. It’s one of those things where instead of going to a totally different market, just expand and go out there a little bit more. I’m actually going to be giving out secrets here, but I’m actually going to be hitting those outskirts markets of Texas a lot more this year. I did a lot last year, but it’s been successful. It’s been good that I want to hit some more of those tertiary markets out there.

That gets to the point where you continue in your market, maybe expand a little bit outside your market where you still can use some of those same buyers potentially. Rather than finding all new buyers. If you’re going to Idaho, you’ve got to find all new buyers out there or new contractors out there if you’re doing anything with that. All new realtors, all new boots on the ground and people will be able to go meet with the sellers here. It’s a whole different animal. Mike, we can talk forever about that. Let’s get into what is your investment strategy in real estate? Are you doing more buy and hold or you do still doing wholesale or fix and flip?

I do everything here. Probably the biggest difference for me over the past fourteen months is I started invested in some big multifamily syndications. That is because I have a rental portfolio in Dallas. We have about 40 single-family houses and some notes. When I look back now, that’s where a lot of our wealth is tied up in those. It’s also on paper. In hindsight I look back and I say, “Why didn’t I keep hundreds of them?” I was wholesaling and rehabbing everything and it’s harder to buy. You can’t buy at the prices that I bought most of those ads. Most of my rentals were kept during 2009 to 2013. It’s like, “That period’s gone. That’s not coming back. How do I get from 40 rentals?” I don’t care about the units, but the income and the wealth that those give me to 400.

I was like, “You could probably move the needle a lot faster with multifamily because you can deploy a lot more capital at once.” At the beginning of the year, we talked about virtual wholesaling. For the first time, I’ve always operated in the Dallas-Fort Worth market, I’m going into a couple of new markets. They are strategic. I’m doing them with partners that have boots on the ground and we manage some stuff centrally here. These are people that I’ve known for a while, they’re former Investor Fuel member and a couple of coaching students. People that I know that I’ve trained them or I’ve been involved with them. I know who they are. For example, they’ll handle acquisitions, I will handle lead generation and a lot of the administrative stuff here essentially, because that doesn’t matter where you’re at for those things.

Do not trade a set of problems for another set of problems. Click To Tweet

That’s a good way to go about doing it. People should look at making contacts in these other markets and basically almost doing a joint venture type of deal.

I’m going to start doing that. Probably because I’m surrounded by so many people that are doing cool things. I’m always looking for ways to JV. I have a lot going on as you know. There’s almost nothing that I do or that I’m moving into or that I’m starting on my own. The truth is I know myself enough to know what I’m good at and what I’m not good at. If I have an idea or I hear somebody that has an idea and I can play a role in that, or I found somebody that’s a perfect fit to my puzzle that like, “Here’s what I’m thinking about doing. Would you have an interest in that?” I’m more of a visionary so it’s finding the operator that can do this or somebody that’s already doing that but I have a vision for how to make it bigger. Everything I do at this point is through relationships one way or another.

It’s the most important thing in this business is the relationships and through masterminds Investor Fuel. That’s how you develop those things. If it wasn’t for Investor Fuel, I wouldn’t have any interest in the apartment complexes either. I’m not into those yet. I’m waiting for that market to cool and before I jumped into those because that market is heated up as you know. You’d have to go to pretty rural areas to find real good deals out there. There’s still plenty of cashflow in deals. There’s always people retiring or wanting to get rid of these things. There’s always going to be a market for it. The relationships are key. There is no doubt about it. Do you do much wholesaling it?

If you are referring to assigning, I’ve assigned hundred-plus deals. Early on, because we started in 2008, it was hard to get access to capital. There are a lot of banks that stopped lending and stuff, but we found it through some private relationships and through a local bank here that was through a private relationship. We found some sources of capital. We found it during the depression, if you will. We have never had an issue with capital that we need for a fix and flips and stuff here. Early on, we assigned a bunch of deals and we don’t assign much anymore.

What I have been doing mostly and I used to be rehab-heavy, all out rehab, but for the past years, what we do more than anything is wholetail. You take it down and put it right on the MLS. I am saying a wholetail that evolved from, “We’re going to spend a few thousand in there,” to what’s more common is I’m going to spend $500 and have somebody clean it, put a bunch of odorizers in there and that’s it. We do absolute bare minimum, but the market has allowed that. It’s starting to cool down a little bit and we might have to put a little more into them than we did in the past several years. That’s been my main model is wholetailing. It’s wholesaling to a retail audiences effectively.

It’s making them mortgage-able. We did one of those joint ventures last year together. We’re doing a lot of that as well. We are doing some of the fuller scale rehabs, not major but some full-scale rehabs, fix and flips local to me and I’m doing a lot of buy and hold right now. I don’t know whether that’s a good idea or a bad idea long-term here, but the cashflow is great. I love having that mailbox money. I appreciate all of your time, Mike.

It’s great to be on your show.

Also, let people know where they can reach you. If people want to reach you for Investor Fuel, they can reach out to you or they can reach out to me and I’ll connect you, guys.

They can do that or if you go to InvestorFuel.com you can learn more and we have a process as you know, where you apply. It’s only a couple of minutes filling out a questionnaire. Tell us that you heard about it from Paul because that carries a lot of weight. Paul’s one of our founding members. Paul and I have been friends for a number of years. Whether you reach out to Paul and come through him or tell us that you came through Paul either way, but you can learn more about Investor Fuel at InvestorFuel.com. You can visit FlipNerd.com. We have a ton of information and content out there. Probably Facebook or Instagram are the two other ways. You can find me on there pretty easily.

At FlipNerd.com, there is a ton of great content on there on fixing and flipping and on everything, every aspect that real estate investing. I spent a lot of time on there, Mike, watching stuff too.

FO 9 | Real Estate Masterminds

Real Estate Masterminds: Little tweaks that people can make to their business sometimes make a massive difference on your bottom line.

 

We have endless supply. I don’t even know but we have over a thousand hours of video content for sure.

There’s some good stuff in there. Definitely, go out there. Take a look at both those Investor Fuel. I rate it highly. If you’re newer, you want to start in a gold program, that’s great. If you’re experienced, this is going to help you explode to the next level. Mike, I appreciate everything. Thank you so much for your time and then we’ll have to catch up and do another interview here. 

It sounds good, Paul.

Thanks, Mike. Take care.

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About Mike Hambright

FO 9 | Real Estate MastermindsI’m a professional Real Estate investor, mentor and coach that has bought and sold hundreds of houses, and mentored others that have bought thousands of properties. While I love rehabbing houses, watching the transformation and working through challenges, what I love most is the flexibility and freedom that investing provides my family.

Real estate investing has made such an impression on me, that I now share my passion, experience and lessons with the world, via my award-winning podcasts, training programs and real estate investor coaching. I’ve mentored hundreds of successful real estate investors that have gone on to purchase thousands of properties, a large number of which have achieved financial freedom.