Real Estate Investing Coaching and Mentoring – Hear Students’ Success
Dave Dinkel: Real estate investing has made more millionaires than any other business or profession. All of these individuals started with no knowledge of what to do and many started with no money and no credit.
I’m Dave Dinkel and I’ve been a real estate investor since 1975 – that’s 39 years but my personal greatest achievement is having been married to my wife, Nancy, for 50 years. First of all, I am passionate about real estate investing because of how it dramatically changes people’s lives. I have been asked to talk about what has been called “America’s Most Successful Real Estate Mentoring Program.”
We have been told this by national speakers who visit REIAs all around the country and see other programs. Much more importantly, our own students have told us this because of their personal experiences. Many of these students have paid as much as $70,000 for a single real estate course and never completed a deal before coming into out Mentoring Program. If you truly want the freedom and the lifestyle changes that you have only dreamed about, real estate investing can change your life.
Imagine how $5,000, $10,000 or $50,000 of instant income could affect your life. What about these amounts every month? In a few moments you’ll see real people just like you who have done exactly this and who all started with no previous experience, no money, no credit and were afraid of taking any risk!
I have to forewarn you – this is not a “get rich quick scheme” despite some students succeeding very quickly. This is not a program where you work 15 minutes a day and make millions of dollars. Successful real estate investors must work hard, either part time or full time to achieve their financial independence. Part timers should put in one to two hours a day and full timers at least four to six hours a day. How many hours a day are you working now to make your boss rich? But why not you instead of him?
As you become more successful you will work less and less and earn more and more but you have to start at the beginning. Real estate investing is not rocket science as some gurus would have you believe. My most successful students started with no knowledge and learned very quickly because our accountability team has over 120 years of personal real estate investing experience. We are still investors doing deals on a daily basis and this experience can become a “safety net” for you. We even help your build your personal buyers list so you can wholesale your deals quickly during the inspection period.
The Federal Trade Commission (FTC) requires that if I state an average income, I have to prove it with actual results. This is literally impossible in our industry simply because as students graduate and start doing deals; I speak with them less and less frequently. I do not intend to ask them for their tax returns to see how they are doing each year. But here are some facts as I know them.
Some students have never done a deal and we have coached them for years. Some students have done deals in a couple of weeks. One student, who I believe is our most successful student, has net profits of over $200,000 a month in Single Family Homes with no money, no credit and no risk on his part and he doesn’t do rehabs. A good number of our students have attained our super star status which is earning $50,000 a month or more.
None of the above students use their own money or credit for the vast majority of their deals. So, what is an average student earning? Frankly, I have no idea whatsoever, so I will say nothing for the sake of complying with the FTC regulations. Ask yourself, do you want to be just average? Or do you want to attain super star status? The choice is yours. You’ll have to work hard but making money is seldom easy when you first start out.
I want to take a second and mention that Nancy and I were awarded the first ever “Lifetime Achievement Award for Real Estate Investing” in December of 2013. What an amazing experience to be recognized not for selling tons of tapes and CDs and books, but for helping investors and students fulfill what I call their personal magnificence. Your personal change can start right now by simply making the choice to take action and get involved in our mentoring program.
What does it cost you to wait until everything is just perfect? Well, if your goal is to make $100,000 for the year, by waiting, it costs you $400 a day; can you really afford $400 a day? But what if your dream is like some of my students who have actually achieved their goal of earning $1 million a year? That’s $4,000 a day. Frankly, the longer you wait, the less your chance of success. So don’t wait until it’s too late. Make your life-changing decision now.
By the way, how much does your boss pay you for your life? What is your life really worth? $10,000 a month? $10,000 a week? Or $10,000 a day? The choice is yours. You are where you are because of choices, good, bad or ugly. As I say to my students at the end of our quick start class, “Let’s make history together!” The best part of that is that many of them make breathtaking lifestyle changes starting from where you are right now. Why not you?
Ray: Hi, I’m Ray Carabotta.
Dave Dinkel: Ray, you’re a student and you’ve had an exceptional deal that was just completed. As a matter of fact, the profit was over a $104,000. Now, tell us where you got the deal and just a little bit about it.
Ray: I got the deal from somebody I met through the DREIA organization. He had a package of some probate deals and I just started talking to him. He brought a package to me. I went to Dave and you know brought the deal to them and without them I definitely would not have been able to get this done.
I have invested in the past and I’ve always used traditional financing. I waited for the market to go up and then I would sell it. I actually got caught in 2008, 2009, I was very fearful of even, you know, getting back into the business but when I went to this, you know, to DREIA, I learned of how they operate and sure enough you know, 30 to 45 days later we closed that first deal.
Dave Dinkel: Let’s talk about the amount of money that’s involved. This was $850,000 purchase and what it was it’s sold for?
Ray: It was sold for 975.
Dave Dinkel: OK, so we’re talking almost a million dollars. How much money did you involved in that transaction?
Ray: I didn’t put any money into it. I don’t think I’ve ever given my social security. They’ve never seen my credit. And which is just smooth as it can be. I mean everything you guys talked about which I was a little bit doubtful at first but now, I’m a firm believer. Without this class, without going to this program, there’s no shot this would have happened.
Dave Dinkel: If you were going to tell somebody else that is coming about the program what would you say to him about it?
Ray: Don’t hesitate. Be fearless.
Dave Dinkel: Thanks very much, Ray.
Ray: You got it.
Dave Dinkel: Our program offers unprecedented access to your accountability partner and mentor. All of the contracting is done for you. You can be making offers, real offers, within a couple days after the quick start class. We give you all the “how’s and the why’s” of doing deals and focus on you getting started quickly. We provide proof of funds (POF) and may be able to fund your deals but we decide if a deal is a deal for funding purposes. We have a complete network of seasoned pros for the team you need to get started doing deals – closing agents, attorneys, contractors, appraisers, home inspectors, insurance agents, Realtors®, everyone you need locally for your support system. All of whom are ready, willing and able to help you succeed.
Our student selection process is by application only and not every applicant will be accepted. We are not doing this to become rich on student tuitions. We do it because we love helping people. However, our class sizes are extremely limited – usually eight or less individuals. Frankly, we choose to keep the classes small so we can spend quality, one-on-one time with each student as it is needed.
On this page you’ll see a tab that will take you to the Mentoring application (http://www.davedinkel.com/real-estate-mentor-program-application/). Please fill it out and return it by fax or email. We’re all what we are by choices we have made in the past. Now is the time to make the choice that can change your life forever. Return the application so you aren’t shut out for our next quick start two-day event. At this time, the mentoring tuition is $10,000 but it is subject to change without notice. What this tuition amount typically equals is the profit on just one deal. All you need is a single deal to get your tuition investment back. Our average deal’s profit locally is nearly $20,000, no money, no credit, no risk.
I developed what I call a “Trilogy of Truths” that students use throughout their daily lives. “It doesn’t matter.” “No more Excuses” and “I am Fearless.” Fearless does not mean reckless. As promised, next you’ll see a few of our exceptional students who mastered their personal destinies. But answer this question for yourself – “Why not me?” There is no reason why not you.
Hi, I’m Dave Dinkel and today we’re interviewing John Aaron. John happens to be one of our Mentor students who has been in the business for a while now. His goal when he came to me originally was to do a deal a week and I said to him that’s an aggressive goal but it can be done. And then in about six months now that he has been on the system, he’s gotten to a point where he is doing a deal a week. Now, tell us about your background in real estate investing before you came in.
John: Well, I was always very interested in investing in real estate. When I came here I was looking everywhere for it online, looking at different gurus, getting information from almost anybody who would give it to me. And then I find out about Dave Dinkel and his educational hours and I started getting into that and I found out about the Mentoring Program and I joined that in November and it has been great since then with Dave.
Dave Dinkel: We’ve given you all the support you need and more, haven’t we? And it has been working pretty well.
John: Way more. I used to email and call, thinking that he wouldn’t answer back and it was never a problem. It was always quick responses.
Dave Dinkel: One of the things that’s kind of the ultimate goal in our system, our mentoring system, is to do the $100,000 a month. We have a number of students who achieved that level. And once you achieve it, it’s pretty easy to maintain. Now, if you’re doing a deal a week, our average in commission or profits on these deals is around $15,000 to $18,000. So this month, you’re going to be closing four or five deals and you’ll be right at $60,000.
John: Yeah, around $60,000 yeah.
Dave Dinkel: So, he’s on his way and let’s just generally talk about what do you do? How do you do that?
John: It’s not easy. There’s a lot of work that goes into it, yeah.
Dave Dinkel: But again, if you’re earning $40,000, $50,000 a month…
John: Yes, it’s worth almost a little bit.
Dave Dinkel: A lot of people work 20 hours a day and they don’t earn that in a year.
Dave Dinkel: So the reality is it is hard work but it’s much rewarding.
Dave Dinkel: So, tell us some of the things you do. Some of the things…
John: The first thing I do is when I wake up in the morning is I make my offers, like you say. From that, I follow up by calling and emailing sellers and agents who I’ve made offers to. And that’s the most important part as you’ve taught us is the follow-up. You can make all the offers you want but if you don’t follow-up they’ll forget about you. So the follow-up is what I focus on the most.
Dave Dinkel: One of the things we like to talk about every once in a while is how long ago he started on a deal. And some of these are three or four or five months.
John: Yeah. Like the one in– so I did it was last year I think December or November and it just closed a couple of months ago.
Dave Dinkel: Yeah, it’s amazing.
Dave Dinkel: But that’s the key, that’s where the money is. So, we don’t have a specific deal in mind at the moment that we’re talking about because you’ve got a whole bunch of them going on but for aspiring potential students that might be coming onboard or people who want to get into real estate investing, do you have any comments for them?
John: Just stick with it. If you decide to do it, stick with it. If you have a month or a week that doesn’t look good, just stick with it. Listen to your mentor, Dave. They have done it before. They have been there before. If you stick with it, it will come out how you need it to come out. A lot of people quit like a lot of friends that I knew at the beginning. They are not doing anymore. They say it doesn’t work. This, this, that because they don’t listen. If you listen to what Dave says it will work 100%.
Dave Dinkel: How many deals do you think do you have in the pipeline right now?
John: Deals that I have in the pipeline now let’s say four to five.
Dave Dinkel: Now, did you know we’re closing?
Dave Dinkel: But in prospective deals, do you have any concept on that like 20 or 30? Do you keep– try to keep it in your pipeline?
John: Yeah, at least that, yeah.
Dave Dinkel: Yeah. There’s something else I want to ask you about. Oh, the other thing I want to mention was how many of the deals that you’re getting are listed deals?
John: I would say 60%, 50% that I…
Dave Dinkel: OK. That actually wind up being done.
John: Done. Yeah, yeah, yeah.
Dave Dinkel: OK, out of that 50% or 60% of the deals you’re doing, how many of those are you’re having to pay over list price because there’s so much competitive bidding from other investors?
John: Zero. [Laughter] I never paid over list price.
Dave Dinkel: That’s what we can’t get people to understand. The average concept is that it’s reinforced by the Realtors® is every deal that they have listed is going to sell higher than the listing price and you have to offer more. The reality is if you do, you can’t do anything with it. You can’t wholesale it.
John Aaron: Right.
Dave Dinkel: So, John thanks for being here. A couple of days ago, John picked up a check which he went over and cashed. I think he spread out all the money out on his bed. But thanks very much. Thanks for being part of the system.
Hi, I’m Dave Dinkel and today we’re interviewing Anu who’s one of our exceptional students who has been on the program about three years. And when I first interviewed Anu for the Mentoring Program she was carrying a baby. And since then she has had another baby. So she’s a full time Mom but she also works a full time job which she happens to like very much. She loves her job. She has done very well at it and she has done extraordinary well in real estate investing. Tell us about your experience when you came and interviewed for me in Mentoring Program.
Anu: OK. So, I came to know Dave through a common friend of ours. And then I was obviously very skeptical about what to expect and what it is and what is the real estate investing. I have no clue. So I met with Dave a couple of times and just get a feel for what they do and what it is and what real estate investing.
Actually, we started thinking about real estate investing when we wanted to buy our first home. And then I went by Dave’s office a couple of times. I was talking to him, what they are doing, what it is and what is the Mentoring Program. And then we thought about it for a couple months before we actually signed up for the program. And then we decided to do it because that’s the– after talking to Dave, I was very confident that even though we have no experience in real estate, we can do really well because the way he is talking, the way he’s going to mentor and the things like that.
So we were really comfortable and we signed up for the Mentoring Program. And we never looked back. He was even helping us before we signed up his Mentoring Program, honestly. So I did learn something about real estate before signing the Mentoring Program making offers and stuff. He helped with pre mentoring guide. I guess we then been doing deals since then.
Dave Dinkel: Mm-hmm. And you’ve been doing great deals. You started with not a lot of money. And the idea was let’s wholesale for as long as we can to make some money and that worked out very well for you. On your wholesaling, I know I’m putting you on the spot a little bit, but what do you think your average profit was on your wholesale deals.
Anu: We made good deals over 20 and on average I guess like 10 grand.
Dave Dinkel: About 10 or 15 maybe?
Anu: Yeah, 10 to 15, yeah.
Dave Dinkel: So you actually decided into about 10 or so deals that you’re going to start keeping some rental properties.
Anu: Yes. We were only wholesaling the first year and then after that, we were thinking of– even then I guess second or third triplex, remember? We were wholesaling I guess we made like 19 or 20K. And then Dave and I looked at it first and Dave was saying, “Oh, maybe are you comfortable keeping it?” “No, we are not comfortable keeping it. We wanted to wholesale everything.” And then we actually, while we got a feel for the wholesaling we were doing very well and then we were keeping, or started keeping some rental properties.
Dave Dinkel: Now, you were buying houses in like 30% cap rate because of market conditions but you did rehab them. You still have any of those?
Anu: Oh yeah, we have 11 properties like them.
Dave Dinkel: OK. You got ahead of me. You’re doing more than I thought you were doing, even great. But those triplexes what– after rehabs and all, do you know what your cap rate is on those? What the yield is?
Anu: I guess we are making like 20%.
Dave Dinkel: Oh, still about 20%, which is a great place to put money.
Dave Dinkel: Did you refi any of those? Cash out or how did you do that?
Anu: We did refi one of the– we have one of the rental properties and using the– I guess pri– we’re using a…
Dave Dinkel: Private money lender?
Anu: Private money lender. Yeah, we got like 6.25…
Dave Dinkel: Uh-huh.
Anu: …on the loan and but we still I guess making money on it.
Dave Dinkel: Yeah, I’m sure. Besides that though, you started to do rehabbing.
Dave Dinkel: How many rehabs have you completed roughly?
Anu: We completedjust over 40 deals.
Dave Dinkel: How many rehabs out of that?
Anu: I guess maybe 20?
Dave Dinkel: Oh, OK. I didn’t realize–I’m way behind. I haven’t talked to you guys enough. But that’s super.
Anu: Yeah. We did…
Dave Dinkel: But you obviously like rehabbing.
Anu: Yeah, rehabbing is a lot of work, don’t get me wrong. Wholesaling is the best and we love wholesaling honestly because– but rehabbing also working out well for us because we work full time and we have full time jobs and we are so busy with the kids and everything. So the properties we have, we rehab, we do expect to have a greater return. So it’s not like we are rehabbing every property but the properties we do rehab.
Dave Dinkel: Yeah, you have a little niche because now, when you go into bid on a property, you can actually keep it if you want to.
Dave Dinkel: So you can keep it and rehab it. So it’s not, you don’t have to wholesale it. You try and wholesale first and if you can’t get what you want for it then you go ahead for rehab it.
Dave Dinkel: Now here’s one thing a lot of people don’t understand. When you get a property under contract then you know you’re going to renegotiate the price. Even if the agent is telling you, you cannot in the contract or the addendum from whoever it happens to be the REO, the REO bank, they tell you, “You cannot negotiate.” You do it anyway.
Anu: Yeah. We have nothing to lose really asking.
Dave Dinkel: What’s the most you’ve gotten as a discount because you went back and did it? Now you had one house that was vandalized after you had it. But aside from that, what’s about the most of the discount that you’ve gotten.
Anu: We got recently on a 1/1 $19,500.
Dave Dinkel: 19,000 but typically you’re going to get $2,500 to $5,000 on it?
Anu: Yes. So we do even renegotiate, we were just wholesaling the other day. I think I will– I keep on going, going so until the last week that is.
Dave Dinkel: OK. How did the Mentoring Program really help if you’re going to say to some other people who are thinking about it? Oh by the way, we’re standing in one of their rehabs that has just been completed. You can still smell paint and we’re just walking through and showing them some little tune ups that the cleaning people need to do more than anything else. Now, you guys don’t do the rehab yourselves. You’re not down here on weekends patching and painting. You have crews that do that for you now.
Anu: Right. Exactly.
Dave Dinkel: So, what would you say to somebody that’s thinking about getting in the Mentoring Program?
Anu: I guess this is the best thing that happened to us. Without Dave and Nan, we would not be doing the real estate business that’s for sure. So they walked us from zero to where we are right now. And even though we finished our Mentoring Program we talk to them everyday. And then when we have any questions, we email them, call them. They are ready to help people so they want people to be successful. And they take pride in their student’s success. So they are genuinely here to help people.
So I guess– I know there are a lot of other real estate programs out there that promise sky and then they want to charge you a lot of fees and everything. But Dave and Nan are not like that. That I can tell for sure although I did not take any other Mentoring Programs besides Dave. So he had, he knows– he can work with you individually and he can tailor it a little bit to what you need to do to be successful based on your situation. Obviously, our situation is dependent on other people’s situations. I highly recommend talking to Dave one-on-one and to explore the mentoring program. And I think this is one of the best decisions you will be making. And I always tell that you guys should do it forever. And don’t stop doing the mentoring program and take care of yourselves so you can mentor other people and help them to be successful.
Dave Dinkel: I want to put you on the spot once more. What would you tell somebody that’s looking to get into real estate that they need to do to keep them in the program? I mean I’m sort of going up to the idea they have to be persistent and stick to it. You didn’t get a deal in your first week.
Anu: No. No, so actually when I started my Mentoring Program in April 2010, Dave gave me some information and some ideas so I was making some offers and remember that duplex we got in…
Dave Dinkel: Big extra lot on the side.
Dave Dinkel: You still have that?
Anu: Yeah, we still have that but the other duplex. We got them out in Venice the same week I was Taking Mentoring and that was– that has so many issues which I didn’t know how to inspect the property.
Dave Dinkel: Oh that’s the one with the hole that went to the septic tank that you can walk into almost.
Anu: Yeah. So, I guess.
Dave Dinkel: We wholesaled that though.
Anu: That we wholesaled that.
Dave Dinkel: Yeah.
Anu: That one with the termites, the duplex with the termites…
Dave Dinkel: It’s holding the place together.
Anu: Yes. So I would– we were so happy, “Oh we’re going to get our first deal” and that was not a deal but still we keep on doing. I guess persistence is the key. Don’t stop it, if you stop it then you’re back. It’s hard to get back after so many rejections and so many negative emails you get from Realtors® and investors, “Oh no, this is so low. What are you thinking? Are you crazy to send me this now? Whatever.” And some Realtors® are even bullying people and they use this I guess bullying techniques to get you pay more and no inspection. “Oh no, seller will not allow you. You’re going to lose your…”
So, if you are not sure about something, talk to Dave or Nan. They are very resourceful and they are very helpful. They’re here to help you and I guess don’t be scared that you’ll be losing something. You always have a safety net of Dave and Nan.
Dave Dinkel: OK, closing, I just want to say to you I’m very proud of you.
Anu: Thank you.
Dave Dinkel: You’re truly an exceptional student and you’ve persisted, stuck to it and you did extraordinarily well. So thanks for the interview.
Anu: OK. Thank you Dave of course, we are very grateful for you and Nan for being our mentors and OK, don’t lose the opportunity to take the Mentoring Program. If I have to tell you something I guess that’s it.
Dave Dinkel: Thank you.
Tiffany: I’m trying to figure out how to say I got started though.
Dave Dinkel: Well, you made a decision to do it full time pretty much.
Tiffany: I didn’t make a decision until I met with you.
Dave Dinkel: Oh really?
Tiffany: I didn’t want to do it. [Laughter] I wasn’t interested.
Dave Dinkel: Oh that’s pretty interesting.
Tiffany: Yeah, I didn’t want to do it until I sat down with you guys. That was final my decision.
Dave Dinkel: You ought to say that. Is it rolling?
Female Speaker: Yeah.
Tiffany: I mean it’s– I’m actually going to say I wasn’t interested.
Dave Dinkel: Yeah, yeah.
Dave Dinkel: So were going to start over. OK.
Tiffany: OK, go. You want me to go or you want to go?
Dave Dinkel: I’ll go. [Laughter]
Tiffany: OK, Go. [Laughter]
Dave Dinkel: I’m Dave Dinkel and welcome. Today we’re going to be interviewing one of our exceptional mentor students Tiffany Bonfiglio. Her husband is well-known in the real estate industry as a broker but Tiffany is not an agent. And I wanted to talk to her. She has been very, very successful in a certain small niches and what’s unique about what she does is her profit margins are above average. We average about $15,000 to $18,000 on our wholesale deals. She averages probably a little over $30,000 on her deals. But let’s start off from the beginning. What happened that got you into real estate investing?
Tiffany: What happened was basically we lost almost everything. I lost my construction business. We pretty much lost everything in the real estate business, all our properties, so we needed to start from scratch.
Dave Dinkel: And this is because of a downturn in the…
Tiffany: Downturn partly…
Dave Dinkel: …mortgage meltdown and so on.
Tiffany: The mortgage industry, the real estate industry, the construction industry. So we basically had to start from the bottom. My husband decided he was going to take a few classes. At that time I was not interested. I had no interest in real estate. I didn’t know anything. So he decided to take these classes, spent a lot of money on these and pretty much we got nowhere except for some DVDs and that was basically about it.
Dave Dinkel: And so now you’re talking about real estate investing even though he has been a Realtor®, a broker. He decided I want to get down in the wholesale business so I don’t have…
Dave Dinkel: So I don’t have to have money and I can turn them quickly and things like that.
Dave Dinkel: So you guys– and you had a partner for a short time did you not?
Tiffany: We had a partner for a short time and they would attempt to do it from our home office and I started to dabble in it. I wasn’t understanding it. And I was getting frustrated. So, my husband decided, he wanted to– he asked me to go to one of the meetings. And I basically said, “Fine, I’ll go.” I was totally against it. So I sat down. I listened to what had to be said and the next day, he asked me and he goes, you know, “Let’s just go sit down with Dave and Nancy and see what they have to say.”
Again, I was totally against it. I did not want to do it. I didn’t want to spend any more money on anything. I was done. But I agreed to it. And we sat down. I was sold on it. I started I guess pretty much that day. I had a jumpstart and started on what needed to be done and ever since then, I can’t say enough. I have just have been doing exactly what was told to me and what was taught to me and it has been working.
Dave Dinkel: And it took about two or three months for you to get your first deal. Nancy is her accountability partner, Nancy happens to be on the other side of the camera. So I’m just saying, was it 90 days or 60 days before she got her first deal? Do you remember?
Nancy: I thought the first one came in, in 30 days and then it was…
Dave Dinkel: It took a while to close.
Tiffany: The first one if I’m not mistaken came in while I was sitting in class is when I got my first approval.
Dave Dinkel: In the mentoring class.
Tiffany: In the mentoring class.
Dave Dinkel: OK.
Tiffany: It’s when I actually sat down, I said I looked at my phone and I said, “Oh my!” I was super excited! I’m not sure if that one closed but that was my first deal.
Dave Dinkel: Yeah, I think there’s a big misconception about “you’ve got a deal”. You don’t got a deal unless the thing closes and you actually make a profit on it. The rest of the time you have signed contracts…
Dave Dinkel: …but you never know if they’re going to go through. We’ve had some great deals together. You’ve had a double closing so to speak. Two different properties where you came in and your check, the gross check was 85,000 I think profit-wise, 84,000, 85,000. But typically you’re going over 30,000 a deal. And one of the reasons I interview some of the very successful students is because I like students to achieve that goal of $100,000 a month income. And you certainly have been there because you’ve had closings all in one month. And all you have to do is be more consistent. You still have two small children, you still help your husband full time in his office. So it’s really sort of part time for you.
Tiffany: It’s definitely part time. I sometimes will get that little itch to start throwing in contracts again like I am right now. [Laughter] I know for myself that within those contracts that I am putting in that I’ll get one signed back. If I put in 10, I know I’m going to get one back that’s signed and executed. If I close it that’s a whole another story. I either pay– offered too much or it’s just not a deal at that time. There’s other times when I just don’t have the time but you have to make the time.
Dave Dinkel: Yeah. You have been exceptionally good at renegotiating before the closing and getting discounts. Even when it’s set in the contract itself, “You cannot renegotiate. We will cancel it.” You have done that anyway and it’s worked for you very well.
Tiffany: Yes. That’s definitely one of my stronger suits is the renegotiating. I always know going in that most likely I can get a reduction. I know most people want to get rid of the properties. So they want to get– they’ll pretty much get– do something for you. I mean not crazy you know $30,000 or $40,000 reduction but they’ll give me 5, 10, 15 depending on the situation.
Dave Dinkel: And that’s pure profit. I want to talk about two of your deals. One of which, predominantly what you’ve done is you’ve wholesaled. So you’ve had no money in the deals and I’ve actually I think funded one or two of the transactional fundings or something for you. But let’s talk about the where you actually became a landlord for a while.
Tiffany: That’s not fun. [Laughter] Becoming a landlord especially to where other people who want to take advantage of you. They see a girl walking in. Number one, they try to do everything they can to pull one over on you. Basically it was a multi family. When I purchased it, I purchased it for a good amount and we were trying to wholesale it. We had a buyer at that time and at the last minute the buyer backed out but we knew it was a good deal so we end up closing on it.
Dave Dinkel: And holding it and then it had a deed restriction, did it not?
Tiffany: And holding… It had a…
Dave Dinkel: A short deed restriction.
Tiffany: Yeah, I think with as 30-day rate restriction if I’m not mistaken.
Dave Dinkel: Which is normally not a problem but in this case, the tenants weren’t paying. So to be able to resell it and get the most money out of it, we had to have paying tenants which is not always the case. So you went in there with tenants who were essentially squatters.
Dave Dinkel: And you took over. You took control.
Tiffany: I did. I went in there, basically the first day after we closed, I went in there and we introduced our, you know, myself to everybody. Basically told them that you know I’m going to be the one collecting rent. If you need anything done, you’re going to call me. And of course, right then and there, “Oh I need this, I need that.” And I told everybody, “That’s it, I’m not doing anything until I have rent.” So, by the 15th rolled around and I gave everybody till the 15th, went there knocking on doors. I got one rent. That’s it. Out of six units I got one rent. [Laughter]
Everybody is else was like, “Well I, you know I paid the previous owner. I need this fixed. I’m not paying.” And it just went on and on with different stories. So basically what I told them is if you want something fixed, you need to pay me rent. We’ll work something out. So after a couple of weeks of doing this, they finally understood and I got the place fixed up. I have rent. There was only one person that wasn’t paying rent, they were being evicted. Everything else was in tiptop shape and we sold if for a very nice profit.
Dave Dinkel: Did you remember what the profit was? It’s 40 something was it?
Tiffany: It was. We bought it for 164, 165 and we sold it for 215.
Dave Dinkel: OK. All right. Now, you also became a rehabber.
Tiffany: I did.
Dave Dinkel: And how did that go for you?
Tiffany: And you see the smile on my face. I do enjoy rehabbing. [Laughter]
Dave Dinkel: You like the end product when it comes out…
Tiffany: I do. I bought my first property. It was in need of some major repair. There– it had a pool and…
Dave Dinkel: Was there any water in pool when you got them?
Tiffany: There was no water in the pool. [Laughter] The pool was not in a functioning matter. There as dirt. It was just. It was bad. And the end result, we fixed it and sold it for a very nice profit again.
Dave Dinkel: Super. What would you suggest to people? Everyday I talk to people and they probably get tired hearing it from me. But as a person who has come from “I didn’t want to do it. I don’t want to do it. Well, let me try it. And wow, it has been amazingly successful.” What would you tell new people coming in? What is the key to your success?
Tiffany: Don’t give up. If you give up, it’s not going to work. If you are determined and you have that itch that you want to make money…
Dave Dinkel: Persistence?
Tiffany: … and you– persistence and you want to be successful and you want to work for yourself and make your own hours. This works. It 100% works as long as you want it to work.
Dave Dinkel: OK. Any other comment?
Tiffany: Don’t give up. [Laughter]
Dave Dinkel: Thanks very much.
Tiffany: Be fearless.
Dave Dinkel: Hi, I’m Dave Dinkel and today we’re meeting with two of our former students who are now out on their own for a long time, doing very well. Jorge Fernandez and Jerry Romaguera came to us probably about three years ago now.
Jerry: Yeah, about three years.
Dave Dinkel: And you guys had done a few deals before that but you wanted to learn how to wholesale.
Dave Dinkel: A few reasons, first to flip deals and also to get better prices because you guys are buyers and holders and buyers and rehabbers.
Dave Dinkel: So tell us what that experience was like for you going through the rigors of the Mentoring Program.
Jerry: Well, I knew then that I don’t know as much as I thought I did.
Dave Dinkel: How long have you been on the business before that?
Jerry: Many, many years before that. Probably over 15 years.
Dave Dinkel: Oh really? Oh OK.
Jerry: Always flipping and rehabbing. Went through the whole market, crashing, almost lost our shorts there. Then we were able to bounce back, had a few people have faith in us. And we started flipping again. We felt that we needed stability so we started holding on to these properties. And there was just something missing and then when I went to, at the time, to the club and I saw the course, that’s what kind of changed it for us. Once you started wholesaling it’s when it really turned it on for us. We had another avenue, another revenue stream that we never thought was even possible.
Jerry: Before you had to buy, flip and hold it for a while then sell. So it was nice to be able to sell and contract.
Dave Dinkel: Yeah, while you’re in your inspection period.
Participant: Right, right.
Dave Dinkel: I want to bring up one deal while we’re talking about it that was interesting. You looked at a property in a local city, that had been on the market for at least six months and the local Code Enforcement Officer was really crazy about the fact that the setback on the one side of the property, had to teardown half of the property. Remember which one I’m talking about?
Jerry: Right, in Hialeah, yeah.
Dave Dinkel: OK. We won’t mention any city names.
Jerry: OK. Sorry.
Dave Dinkel: But that property was built in the early ‘30s.
Dave Dinkel: And what you did that was different I think I suggested it possibly…
Dave Dinkel: …was to go down to the city and see if they had the original drawings of when the house was built. And what you found out was that setback was legal back in the ‘30s. It was only like three feet or less, wasn’t it?
Jorge: I think it was probably less than that. It was– to the eye, it didn’t look right.
Dave Dinkel: Yeah.
Jorge: But you can’t go by that which was learned. So yeah. We went and got the original drawings and the property lines and it was almost like those zero lot lines.
Dave Dinkel: Yeah. Yeah, and I was thinking about that today. The zero lot lines, people think, well, why can’t, they don’t have 8 foot setbacks, well they do, but it’s all on one side.
Jerry: Yeah, right.
Dave Dinkel: So, what you did is when you found that out, you bought the property. Now in that case, you rehabbed it.
Dave Dinkel: Because it had a pretty good spread in it. Now, what it came down to be was it had an enclosed carport that was done a long time ago.
Dave Dinkel: And what you guys did is to bring it up to code. You reopened it into a carport.
Jorge: We got it back to the way it was under their existing plans. We did not want to, you know, illegalize it. We just tore it down.
Dave Dinkel: OK. And what did you guys make on it? Do you remember?
Jerry: 40? Something like this, it was a while ago.
Dave Dinkel: Yeah.
Jerry: And it was over 30 under 50 something like that.
Dave Dinkel: OK. Any other interesting deals which you got that you can you remember off hand? I’m not trying to put you on the spot. We’ve done– we’ve sold you a number of wholesale rental properties.
Jerry: We’ve been kind of wholetailing somewhat.
Dave Dinkel: Explain what wholetailing is to…
Jerry: Basically, I pick it up pretty cheap. Just pass my hand by the property. Do the minimal amount of repairs possible and rent it. And now it’s worth 20 or 30 grand more. So we’ve been sort of doing that. And if we really like the property, just keep it but that’s what we’ve been doing right now. And it’s been working out for us.
Dave Dinkel: How many doors do you guys own now?
Jerry: Right now, we’re at 35 and we manage another 25 for others.
Dave Dinkel: Those are rental income properties that you guys have.
Dave Dinkel: So that brings you a steady base of revenue and…
Dave Dinkel: Then in addition to that, you still do rehabs?
Jerry: We’ve scaled it down to wholetailing. That is and we’re really…
Dave Dinkel: Makes more sense.
Jerry: Yeah, and we’re only buying stuff we want to hold. So that’s the stuff that we’re wholetailing.
Dave Dinkel: That makes more sense in a lot of cases because as he said on the full rehab, they made 40,000 while on wholetailing might make 20,000 or 25,000.
Dave Dinkel: And they only have about a week’s worth of work at most.
Dave Dinkel: It’s OK. OK, I appreciate it very much. For new people who might be thinking about the Mentoring Program, do you have any comments on what to expect or on what you liked, or to say about it?
Jorge: I remember when we’re sitting in that classes just like Jerry had mentioned. It’s amazing that things– being in the business, Jerry was in the business a lot longer than I am but I have been in the business for a few years. How much you really don’t know and how many things are– things that are taught in the program that can really help you, you know, make money in short amount of time. Ours we had– one of the things we were doing like Jerry mentioned a lot of rehabbing, you’re talking weeks, months…
Dave Dinkel: And so it always a cash flow problem.
Jorge: Cash flow problem.
Jorge: A lot of cash out and there’s always a risk as a market or the appraisers in the area going to have. You know just because it’s OK now, maybe it’s not in the few weeks or a few months. So, what this entitled allowed us to do is really increase our turn over and profits. And then just like he said ended up to wholetailing, wholesaling different things that we just had no idea.
Dave Dinkel: And with my extensive fishing background we were able to…
Jorge: Yeah. Exactly.
Jerry: He got some appointment through fishing.
Jorge: Now I know that if we have some dolphin hooked up, I can now go drop down and get some wahoo.
Dave Dinkel: That’s what he said. Jorge for you, what was the…
Jerry: For me…
Dave Dinkel: Jerry, I’m sorry.
Jerry: It’s OK. It was a blessing. It taught me a lot of illegal stuff on contracts that I wouldn’t do. I mean it’s amazing how we got through all these problems and I could have got burned pretty bad so many times just for not putting certain disclaimers that I picked up along the way and just the friends that I have met and just how great wholesaling it. It’s a beautiful thing. Anyone that would recommend it or I’m sorry that would consider it, I would definitely recommend it, without a doubt, wholeheartedly.
Dave Dinkel: All right guys.
Dave Dinkel: Go fishing, man.
Jerry: All right.
Dave Dinkel: Now, you go back to Arizona all the time, why is that?
Jerry: I got to the point where the cash flow and the income was stable enough where I don’t have to be here. And I do what I did back then here but I just do it from there.
Dave Dinkel: What’s the difference out there?
Jerry: It’s much drier that’s for sure. The market over there is funny. I’ve looked at it but the margins, the profit margins, is not the same as here.
Dave Dinkel: It’s smaller.
Jerry: It’s much smaller and very competitive too. It’s amazing how many investors there are there. And you’re competing with people that are buying properties. They’re buying to live in it so it’s hard and they’re cash. Anyway, Miami is a good for business, Scottsdale is good for living.
Dave Dinkel: OK. Thanks though.
Dave Dinkel: Hi, ny name’s Dave Dinkel. Today we are here with Mike Vigil. Mike’s been a mentor student for about three years?
Mike Three or four years.
Dave Dinkel: First of all, tell us about your history in real estate investing.
Mike: Back in ‘93, I took a course on short sales and started buying properties, knocking on doors and I actually closed my first one 10 years ago. I did a few, part time, because I was working on my mortgage company full time. And did it part time until three or four years ago I went full time.
Dave Dinkel: Now, were you predominantly up until that time wholesaling or holding or what are you doing?
Dave Dinkel: OK.
Mike: I was wholesaling back then.
Dave Dinkel: So the time came when the market sort of hit the fan and your mortgage company sort of did the same thing I assume.
Mike: Yes, I own the mortgage company and when the market crashed, the company crashed. And back in 2010 I closed it down. I closed the doors, but by then I had started working with you and that sort of launched my business full time, and started wholesaling several properties a month and that’s where I’ve been for the past few years.
Dave Dinkel: Good. OK and it has worked for you obviously.
Mike: Oh yeah, yeah. And now, I do few other things. I do some lease options. I do some wholetailing but mostly wholesaling.
Dave Dinkel: OK. Let’s talk about wholetailing for a second in case someone that’s watching doesn’t know what that is. You want to tell us what it means to you?
Mike: Wholetailing is when I get a sweet deal that it’s in a good neighborhood. At least this is my criteria. It’s got to be in a good neighborhood usually with three bedrooms and it just needs a little patch and paint, some carpeting. And what we do is we close on it and then we sell it retail.
Dave Dinkel: OK. So what you are doing is buying it wholesale, instead of buying it wholesale and selling it to someone who then rehabs it, you guys are keeping it or you’re keeping it.
Dave Dinkel: But you’re not doing a full rehab in most cases.
Mike: No, light rehab.
Dave Dinkel: Yeah, patch and paint.
Dave Dinkel: Yeah. No repair, the kitchen– maybe you repair but not replace.
Dave Dinkel: Not replace the bathrooms. Just get it back on the market.
Mike: No rooms, no windows.
Dave Dinkel: Yeah, so a couple thousand bucks.
Mike: Five, tops.
Dave Dinkel: OK. And then what does that mean in market value? It means an extra how much…
Mike: That means that we can sell it to the end buyer at a retail price.
Dave Dinkel: OK. So it could be an extra 10,000 or 20,000?
Mike: Easily yes.
Dave Dinkel: OK. Let’s talk about the size of profits you’ve had. What’s your history has been sort. What has been the smallest and the largest?
Mike: Well, it ranges anywhere from a couple of grand up to about 20 grand for wholesale.
Dave Dinkel: Right.
Mike: So averaging about 10.
Dave Dinkel: OK.
Dave Dinkel: What’s the Mentoring Program? What was different about the Mentoring Program for you when you came with us and started doing it?
Mike: Well, I have a history of buying courses and courses that have sat up on my shelves. They’re collecting dust. The difference with your course, Dave, is that I’ve had actually a live person to meet face-to-face or pick up the phone and hear a live person on the other end whenever I have a question. And this coaching has lasted way beyond my mentorship. I mean to this day, I’ve always felt like I could always call you and you can help me out with any question I may have with any particular deal. So that’s the biggest, the biggest change that I have had as suppose to other courses that I have taken.
Dave Dinkel: Another thing is we’re actually doing deals as you know.
Mike: Yes, yes.
Mike: Whereas a lot of the people that are out there are selling books and tapes but they are not actually doing deals. And the market changes all the time. You actually came back into Mentoring Program recently.
Mike: Mm-hmm. Right.
Dave Dinkel: Why did you do that?
Mike: A refresher course and I’m also– I know there’s potential to make much more.
Dave Dinkel: Yeah and again the market is always changing so– and we change our strategies, techniques and you were here today and I said to you know here. What had today was a special class for the mentor students. So if we’re not, if you’re having any problems let us know what it is, so we can solve them for you because we have students who are doing extraordinarily well. And other students who can’t seem to get started and they’re not different in any way that I can see, mentality and everything else is the same. So what’s the difference? I don’t know until I talk to him. I need to know how they are doing things so that’s what we did. And you were here today.
Mike: And I want to go back you said that the market is always changing just like your course has. When I took it three years ago, and I took it again last month, I mean it was completely different. I mean it had changed so much and so much new material out there.
Dave Dinkel: You actually live off being a real estate investor.
Dave Dinkel: For people who haven’t become a real estate investor here. What kind of things could you say to them to do? What would you say?
Mike: It’s very Nike, Just Do it. Because it’s like I know what it’s like to sit on my chair and see that 100 pound gorilla telephone there in front of me and not wanting to pick it up and call a potential home owner. It’s actually having the impetus to go out there and write a contract and do it.
Dave Dinkel: Just simply do it.
Mike: Just simply do it and it’s– in the beginning, I was afraid. I had a lot of fear but I ended up knocking on people’s doors and introducing myself and I got deals that way.
Dave Dinkel: Yeah and you got some nasty comments sometimes also.
Mike: I have but…
Dave Dinkel: It a matter course of business.
Mike: …just some great war stories out there but it all, you know, the good outweighs the bad.
Dave Dinkel: And it has been good enough for you that you’re now moving, also you’re going to have a double residence in North Carolina.
Mike: I will be working. I’ll keep my business in Florida and work remotely from North Carolina and still come back to Florida every other month.
Dave Dinkel: OK. All right, great. Thanks very much.
Dave Dinkel: Good to have you as a student.
Mike: OK, perfect.
Dave Dinkel: Thank you.
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