Ep 143- Scaling Your Real Estate Business Using Hivemind With Deandre Anderson

Transcript

recording in progress all right today we're here for deandre anderson 2.0 and everywhere i

have my co-host frank spalding and matt rogers and of course the superstar

deandre anderson um we're gonna just have a conversation we're gonna have fun today um i always like these we're this

is the first time we've had it had had you it's been like six months since we had you on so this is kind of

like what's happened since then like let's get an update like man you're probably a millionaire by now

well i mean the same thing is going on except everything is like more like 10x it's 10x where it was then so um more

deals more jv deals coming in more employees uh you know more you know helping more

people more people add to my um like high mind and you know just helping more people out so um everything's been great and like i

said then i say 5x now 10x so it's like double the efficiency everything is

double at this point double the assignment fees everything so wouldn't that be 2x how many

employees i mean [Laughter] 2x not 10x

so how many employees you got now since you're doing more you're good man you guys can hop in whatever you want this is awesome let's let's have some fun

here i feel i feel like last time we did uh we did the talk i think i maybe had like one maybe one or higher in another

not sure but i do have i do have three like full time they're like they're

full-time 40 hours a week all of them um and i do have a lot more uh a lot more

jv deals coming in so a lot more people reaching out um i probably have i'm gonna say right now about eight jv deals

like all going on all at one time right now so eight joint venture deals between um maybe three or four different high

members so um let's say me and uh one me and one high member we may have five deals together and then we'll have

another high member we'll have like three other deals together so about roughly eight around roughly eight jv

deals together right now so deandre when you're um

you know hiring people and you're setting your team up and uh one of the things that a lot of

people have questions about is you know what would you make your first hire as somebody who's looking for a new va and

and what would be kind of the rank of this would be my first hire i would have them do this second higher i'd have them

do this and so on and so forth well this is what i recommend as far as we're hiring right i would hire out the

most tedious task right so my first higher up was all the excel

excel scraping um uploading lists pulling lists skip tracing lists and scraping the data that

is what took the longest so if you're spending your time doing something that's taking like real real long i

would definitely master that and i will hire that out as quickly as possible that way you could focus on all the less

um kind of the less stressful positions uh because i kid you not it took hours

like you uh let's say i pull a list of 5 000 records right and i have to organize

them and get them skip trades then um what good leads and badly's and then you know a couple hours are gone right but

within that time i could have been marketing i couldn't be doing other things right um so i definitely recommend hiring out all the tedious

tasks first i'm sorry frank

sorry about that matt in terms of how long just one quick follow-up on that in terms of how long that took for you to um get your first

va train are you still with the same first va that you hired or did you have to cycle through a few of them to find

the right fit for you and if so how long did it take you to fully get them trained the way that you want them to do

business well that's my question yeah exactly so the way so the way i do it they all have a two week training so

um the one that i very very first hired is still with me to this day she's a rock star she's awesome right um it only

took her two weeks of training so i kind of have a rule in my company right if they don't make it in two weeks i don't

think they're gonna make it past that unless there's something that happens um you know like maybe like something

devastating like a family situation or like something with their internet connection something like that um if

they don't if they don't make it in two weeks they're not gonna make it you know i make it like all of it all the videos

recorded all the training manuals done you know ethics rules most for the business um and you know in the in those

two weeks you have to know a lot make sure you know everything i record everything right that we talked about um

and then i have you watch videos that were already recorded and then i get on with you and i make you do everything

that we that you just watched right from the recordings and then i record that again so it's like you know if you don't

get it in two weeks then i don't think you're gonna make it so i say uh two weeks of training should be good enough

um depending on which how your training is set up and you know the way you do it but two weeks

is like the cutoff of me for two weeks so kind of a follow-up to that do you

already have everything completely documented step by step what you want them doing like how

to do each process like from the beginning to the end or you're just trying to teach them like

showing them what to do and counting on that video as being the uh thing that they can go back to

well both so i have the videos and um on loom.com i have those videos um so that

they can always go back and refer to them if they forget anything but i really like using um flowcharts right so

the flow i like to use the flow charts as tasks so they know like like for example i don't want to um have to

i don't want to have to come in every day and say hey keisha i need you to do this hey matt hey i need you to do this

every day no there's a flow chart uh step one step two all the way to ten

they know what to do from the moment they clock in all the way until the moment they clock out um because i don't

really like the micromanage right um i like to just look you know check in here and there make sure everything is fine

answer questions um but the flow charts save me a lot of time and energy so once you mix up the

flow charts with the videos i think i think you'll be off you'll be good you'll be fine

in terms of payment and things like that do you offer any kind of bonuses to your va's for deals closed or is it just hey

here's your um here's your hourly and and you know this is what we do offer

bonuses uh so fifty dollars bonuses so a fifty dollar bonus per contract that we

get that closes yep and there and they're really they're somehow my va's are they're on the

philippines like a lot of guys use those type of virtual assistants so and they're you know they're really excited

but i did start off at 25 um but you know all the deals are coming in and they're strong and then everything just

started you know just they just started flowing like moving together as a unit so i actually increased it to 50

uh per contract closed and they're they're very excited about that so yeah that's great i had a guy in

one of my other groups i'm a part of telling me that he did something very similar and he started doing so many

deals that he ended up having some of his bas leave because they were making so much money they just didn't want to work anymore so can you

is there kind of a fine line deandre that you can kind of do you found that in terms of like you know being generous

with bonuses and things like that versus you know making sure that they don't you know get like too fat and happy and walk

away yeah no no that's that's a great question matt i wouldn't go past in my in my opinion um i've heard i heard

someone uh did that to him as well um i would not in my opinion i wouldn't go past 75

um i personally know a guy that did 100 150 bonuses um

and that did not turn out good for him so i would say stay under 100 or stay

like at 75 or below um or make it harder to get the bonuses like

or if you're going to increase the bonus make it you know what instead of get instead of getting a bonus per contract

you're gonna get a bonus per three contracts you know what i'm saying so if you're gonna increase the amount um

increase the amount of bonuses change the amount of contracts or whatever the incentive is um if you're gonna keep the

keeping loads and just i it has to hear you right it has to be a balance has to be balanced so

keep it under 100 or 75 at that or if you go higher just go ahead and you know what i'm

saying um uh lost my train of thought

you know increase the training available for negotiation skills and increase the size

of the bonus based on the size of the spread right the size of the deal which is a result of better negotiation skills

um to follow on to that though like the first va you know have you gotten the position potentially or do you see that

va getting to the position where she becomes you know the person who gets to train other va's to help you to grow

well not well for well it honestly it really depends on how strong the va is you have to know if they're strong or

not like some are strong and they can train others and they can do more than what you're asking them and then some of

them they're not that strong they're not able to train or they're not able to do more they literally can just do what you

tell them to do and they do that well so the first one i hired she she's she's like in the middle she's not that strong

but she's not weak so but she she's not the person to train on the va so um i

was the one to train the extra two va's when i got them so i trained them um but she's really good at what i hire her for

you know follow-ups uh scrubbing the list um you know calling sellers the

ones that we haven't you know we've followed up with them 10 20 times they haven't got back to us so she's really good at follow-ups but and she's not she

wouldn't be strong in training other va's are you getting them through a third party service where you're paying them x

amount then they're paying the va or did you just find her directly or and

that and all of your va's uh it was a mixture of both so the very first one i did um i actually got her

directly through facebook she wrote me an a as a direct message on facebook um

and after she wrote me probably took me a couple weeks to get back to her because i wasn't ready for va at the time in my opinion but when i was ready

i said great i did have some of these um virtual assistants reach out to me on the internet on facebook so i went back

facebook and then i started asking her questions i went to a website you know verified and checked and then so i guess

that was direct um and then she happened to have a sister that needed work as

well so i hired her and i hired her sister so those first two were direct and then for the third one i actually

did go through a va agency um from my acquisitions va so i

used that for my third one so i guess a little both found my own and then

uh if i went through an agency no that's awesome man so one thing i

want to ask is you're actually buying deals now you're no longer a straight wholesaler let's talk about that man

you've stepped up yes i've bought um i'm gonna say that i've bought three deals from hive

members and what makes me more excited about that dan is like great i'm not just buying deals i'm buying it from

hive members it's like great so they bring their deals to me and they're like ah you know i want to jv on it i'm like you know what i'll buy it i don't even

want a jv on it i'll buy it from you you know um it's a different experience it's a different business it's a different

model um but i told myself that this year i had a goal to buy uh four you

know four single-family homes and three to four vacant lots um i want to hold on

to two of them and i want to cash flow the remainder um as far as the land and then all the properties i just want to i

want to cash flow them all so uh it is it's a different business model it's different timing it's like a italian

business but um i told myself i want to be a buyer um because i don't see a point of you know

uh the wholesale deals are awesome right um but the problem is once you do a deal you gotta do another one you gotta do

another one you gotta do another one right um which is you know which is okay but i would rather invest that money

into an asset where it can produce money whether i work or not you know um so that's the goal that i want to do to

build generational wealth

with you know the last six months since you've been on obviously a lot of change including some of your

um you know investing goals and things like that can you walk us a little bit through what those five or six months

have looked like in terms of uh going from a certain amount of deal flow per month then to what it looks like now

uh you're buying locks you're trying to buy some some houses to get cash flow in and a little bit about the evolution of

how that's kind of worked out the last six months right so yeah i'm glad you asked that's a great question right so for the past

five or six months um every deal well let's say i got to take you before that so before that everything was a

wholesale deal everything was all right great how much can we wholesale it for how much can we get four great we're

selling it we're selling it we're selling it so my business model has changed with that so everything is not a

wholesale deal right i take everything through like a step by step okay great um if i were to buy it you know um how

can that be beneficial to me okay if i were to buy and sell or finance it how can that be beneficial right okay if i

were to do this so it's not just okay i'm gonna flip it and wholesale it it's uh should i wholesale it should i buy it

and keep it should i buy it and hold on to it for 90 days and then sell it after 90 days right so i'm not just trying to

be a one-trick pony i'm trying to adapt to the market and do different things um because there are certain things in the market that happen um that made me say

wow if i would have just bought this and held on it for two months i could have doubled what i bought you know double

what i got for it you know what i'm saying um so everything is like a step-by-step process before just all

right everything is a wholesale deal it was just kind of brain it's like wholesale deal hostile deal now it's like could it be a wholesale could it be

a uh fix and flip could it be a buy and hold could it be a seller finance deal um so i'm going through that with every

single deal like no matter what deal it is

have you changed the way you look at deals when you see stuff come in now because of that or is it you know you

have to be able to look at things through a few different lenses not necessarily just a wholesale deal but has the way you've kind of evaluated

deals and what works for you now does that look a little bit different yeah it does so um i'll give you an

example um like for example i i get deals at really good discounts i don't know how but get them at discounts of

course it's with the high right that's the secret was not which is not so secret but like for example i'll get a

i'll get a piece of land you know it's worth twenty thousand but i'll get it for five grand right um i get on the

contract for five grand and in my eyes the before before that time it's oh great we can sell it for 20. we're gonna

make 15 000 great um but now i'm like you know what if i buy it for five and

then i get a 5 000 or 10 000 down payment i can charge you know 500 a month and get this amount of interest

over you know over the next five or ten years so versus me getting 15 000 now

i can get uh 25 000 um over the next couple of years so that's kind of

example how it looks now so you can also raise the price of your own refinancing deals too so if you're

going to sell for 20 cash that's something you could sell for maybe between 25 and 30 on owner finance

because you know people are looking to put that five six seven k down and then you know if that's all i got to come up with out of pocket and then you know

start financing the rest you just got yourself an extra maybe seven eight ten thousand dollars in equity on the deal

on top of the interest on top of that so that's a great way to look at it yeah exactly yep exactly and i have two of

those going on right now two on the financing deal so i own four vacant lots um two of them will be in seller finance

the other two i'm still trying to figure i think i think i want to hold and build on one and then the other one i think

i'm just going to strictly hold it see what happens to the market um but yeah so my strategy has changed with the way

i look at all my deals even though so when i used to get the house deals right um i used to so i don't really do houses

i do 100 land i don't even touch house deals when someone sends me a house deal i don't even evaluate it i have a

partner who strictly does houses i'll send it to him he finds the buyer i'll get like a referral fee or like an

assignment fee in the middle but now when i get these houses i evaluate them like is this going to be a good fix and

flip a good buy and hold or you know what what kind of deal can it be and my primary strategy is buy and hold i

rather buy them fix them up and then just you know cash out refill them and then just run them out and hold hold on

them hold on to those properties for their life so um i like to evaluate as a buy and hold first and then if that

doesn't work or fix and flip if that doesn't work then i'll probably toss it to my partner and then he'll just he'll

get it so he's really good at that so even the way i look at single families has changed because i see single

families and just hey you know wholesale wholesale let's just get them out the door you know

yep what are you looking at as the determining factor on whether or not you want to hold a piece of land and sell or

finance it versus just wholesale it right away like is there something that you think makes that parcel more

attractive than one that you might just wholesale off right away yeah it depends on obviously the price

that i get it at so if i get it like really really dirt cheap and if there's a lot of a ton of equity in it then more

than likely i'll buy it um if it's not a ton of equity like if i get it almost close to retail like if i know i can

sell something for 50 grand and i get it for around 45 i probably wouldn't buy that um another factor is the location

of it um and how far it is from like i'll give an example um i bought one in

jacksonville florida that's roughly about three to four minutes from the jaguar stadium right so um i'm not you

know i don't know what according to all the you know all the news and articles like jacksonville is going to be growing

and they're building another sports complex and all these permits being pulled you know so i'm seeing that but

um but the the lots over there are still they're cheap so i'm just going to be buying them um and see what happens so

on those i'll just be speculating on those so location price um and also if it's like in a

mobile home area like if it's if it's close to like a a mobile home park or it's an area where a lot of manufactured

homes um i know people are going to want to put their homes there and i know that they'll finance those through me so um

if it's in a mobile home area i'll definitely buy it and i'll finance it to someone who wants to put the trailer

there so um so location price um and just some other factors

depending on where it is i really i really like i really like that you're evolving your

your strategy you've kind of kind of you kind of grown up a little bit it's kind of cool i know right

i know it's really you're making me want to do the same thing uh instead of focusing so much into storage

well i'll tell you what too one of the things when you start talking to builders as much as you do deandre and

and all of us do i talk to builders every day and you know in the last maybe three four or

five months is there anything you've kind of taken from your conversations with your builders and buyers deandre

that has led you to maybe want to uh hold on to some of the land to build in certain areas are there any trends

you're seeing talking with some of these buyers about things that are happening in your markets right now uh yes so um

it's a couple of so one thing one thing for sure a lot of the buyers that i'm talking to uh half of them are having

the same problem they're basically saying that um some of them slowed down and buying still to this day because the

city is not approving the permits as quick as last year right so there's so

many uh permits being pulled the bill where it's like hey we're still buying

but we just can't buy as much right now right and i'm actually paying attention to that in some of those areas i'll i'm

buying as well like i'll buy a lot in this area because i know what's coming like for example i bought a lot um in

the city where this this builder i've sold probably over a hundred lots to 100 likes too right and then i looked at i

just said you know what i'm gonna see how how many vacant lots they own in this area and i looked at it they own

over 2 000 lots over 2 000 and then the second builder i

searched they own over fifteen hundred so i'm like wow these guys own a thousand two thousand plus lots in this

one area one county one city i'm like you know they they see something that i don't so

i'll just make sure i'm a part of that in some way even if i got to own one of them i want to be a part of it you know

so having those conversations does play a role in factoring where i decide to buy

or wholesale and things of that nature do you have any brands don't want to do any ground up development yourself on

any of these lots yes the one in jack the one in jacksonville um that's not too far from

the jaguar stadium i do plan on doing ground up construction on that one i don't know if it's going to start this year next year um but i'm kind of seeing

what happens with the market before i decide um but yeah i'm definitely going to be looking into doing that on that

one and then um i know i announced it in a group but i did close on the set the seven acres in mississippi um it came

with like it came with uh so three three different parcels a single family um a

shop in the bag that can be converted to like a studio apartment um so on that one i'm going to be fixing up the house

getting that ready and rented or i'm thinking about even it's not too far for some colleges so i'm even thinking about

renting it by the room um and it has an extra lot that comes with it i'm actually thinking about doing a

ground up construction on that as well i still don't know whether i want to do a manufacturing home or a modular home or

what kind of build i want to do um but in mississippi i do plan on

building there as well on the seven acres that i purchased

very nice that'll be uh interesting uh you know for the remote construction the remote development uh even in florida so

i know you're in uh southeast florida is it yup not too far from miami yep let me know

anything you need in the jacksonville market i'll be glad to help you uh with that one i got you i got you i got a house me and my buddy bought a house in

jacksonville we actually have uh we're doing work to it now we're supposed to be cash cashing out uh sometime this

month we should be starting that process but it's almost done it's maybe 90 done so

yeah let me know where it is uh i may have any uh exit method for you i've got a guy looking for properties uh that can

work for short-term rentals okay awesome that's amazing man so um let's cut it's

kind of crazy seeing you seeing your pivot man in such a short amount of time if anybody go back to the other episode

i think it was like last august last september go check that one out but this one this one's pretty interesting so

let's talk about um let's talk about uh hide mine man so you're now number one how does it

feel to be knocked down to number two are you offended by that i'm a little offended man because that

number one was always my spot always my spot uh that's good um i i i think it's great

it's good it's pretty crazy man i love doing it um we love we love paying out our people monthly and it's kind of it's

kind of a cool like every every month feel like let's drop some money on some people but

um it's kind of cool and it's like it's not like you didn't work for it either you didn't work for it you didn't put some upfront labor what

are you doing to as far as like keep those people together keep them keep them close now are you doing trainings

you do have a first separate group uh what are you doing to like build up that that crew

well i still have everyone that joined with me in the in a telegram group um they can ask questions in there amongst

each other and they can ask me questions directly um from time to time again i'll do a zoom call i haven't done one in a

few weeks but i'll do i'll basically ask i'll be like hey is anyone struggling with anything anyone need any help or

this and that and then i will get on like a zoom call and say hey zone call at seven o'clock come with all your

questions issues and concerns um or if there's any concerns in the group i'll do a video and then i'll just i'll

record the video and i'll just put here's the recorded video in the chat um so keeping everyone together in the

group um it keeps them engaged with me it keeps them engaged with each other and then whatever i can do to help i'll

either find someone with an answer or i'll answer it for them by video even if i have to send like documents or

email or something um but keeping everybody tying that group is really it's really awesome because

i didn't really want to create a group of people where you know they join under you and then you know you disappear and

they don't know where you are i write the guy he doesn't respond you know i don't want to be that guy i want to be

like hey i joined with deandre his group is awesome i can ask him questions directly i can jv with him directly um

and i have access to him you know i didn't want to be one of those people no i i think it's all i'm a member i

joined under deandre that was my uh my introduction to hivemind and i'm in the telegram group and it's good it's a good

place for people to share information and try to help each other out and whatnot so that's fantastic and for

anyone who doesn't know um yeah that's the reason i joined hive was uh reaching

out through deandre and another group were a part of and he had mentioned it and uh we jumped in and we got our

i got my first deal on four days with a hive and uh reached out to the andre we jv together and uh both walked with i

think maybe 7 000 or something that like that each it was about 14 000 total in a wholesale fee down port st lucie florida

and uh yeah and it's there's just been been a lot of positive momentum uh sense

for both him and me and other people in the group so um you know if you join the hive it's a

great way to uh be around like-minded people you know that want to help each other and uh you

know it's definitely collaboration over competition which is huge 100 agreed

so always a blessing yeah yeah let me ask you this are you are you stepping out a little bit more

are you kind of taking on like this deandre's a boss thing like do more podcasts do more live events stuff like

that or are you still you're just grinding i'm still grinding um there is there is a part of me that kind of wants

to like i think about it from time to time like hey maybe i should be on some podcast or maybe i should uh you know go to more

events and maybe try to be a speaker so there's a part of me that does want to do that but then i'm still in grind mode

because you know i was always grounded with wholesaling but now i'm grinding with buying so it's like i started all over

again uh because buying and wholesaling are two different business models two different um so part of me does but then

another part of me like you know what i'm still in grind mode i'm still not where i want to be at yet so when i get

established then i'll do more podcasts and things of that nature

what do you think the next six to seven months look like after the the growth you've seen in the previous six or seven

oh well i didn't well oh man next six seven it's gonna it's gonna be insane because i don't know how

mine just keeps getting better right i keep keep getting more deals like every deal every opportunity and every deal

that i bought wholesale found but it's obviously except the jv deals that they people reach out to me it's all been

through hive mind like those seven acres i got in mississippi that came through high mines so every

nine percent 99.99 my deal's completely hard mine um so with have my key getting better you know so more marketing more

leads more lists um planning on making more hires i see nothing but just positivity in the next couple of months

you know more assignment fees more jv partnerships more affiliates more everything i don't see it slowing down

anytime soon so i'm gonna kind of i'm gonna kind of jump on you said last time is that when

you do go out and start speaking more and doing that like organic stuff it helps you people bring you more leads

but you're not actually paying for the marketing that's what happens that's why i've been

i'm recycling back to all the people we did in podcast early on because now we can kind of do a checkup and then see

what they're doing differently to get more traction because we have a lot of people now that aren't even doing any

marketing they're just getting leads brought to them and just closing those so it's not it's like their marketing went to zero

yeah yeah that's very smart and um and also if i didn't mention i also started um i was only focusing in florida um and

i also i started branching out to different states uh like texas so um i literally just locked up my first

couple of deals in texas a couple weeks ago that i'm doing i'm doing a partner with uh daniel saltzman everyone knows

him right um so in my in my market in florida i'm like the expert i'm the guy

but in texas i'm a nobody no one knows me i have no connection so i use daniel saltzman and he's disappointed all my

deals so people use me i use them it's like a it's like a web we can all use each other you know um so i'm happy to

see i'll be doing my first wholesale deal outside of florida which which is exciting

is that a lot or a house or a larger three and three vacant lots three vacant lots

are you noticing the spreads larger than down in florida or is it just kind of you know obviously it just depends on

the area but are you noticing any difference in pricing and things like that uh almost roughly the same

same in assignment fees roughly the same nothing too crazy yet maybe when i do more marketing and get a

little bit deeper maybe bigger but for right now they're roughly the same not not none too crazy

about marketing time to get it sold like i know right now in jacksonville uh

tampa state pete i can sneeze after posting uh you know something that i got under contract and

i've already got five offers on it so how's that in texas because i've yet to actually move anything there

well i would say it's i would say it's the same by the way daniel saw some disco these deals i sent him the deals

on monday he had a buyer on tuesday for all three you know it was just like snap

of a finger so um i'm gonna say it's exactly the same exactly the same

very nice very nice deandre when uh newer members join or

get involved in wholesaling one of the things that uh they find difficult is is talking to buyers sometimes not even

talking to sellers is that difficult but trying to find buyers for deals um negotiating with buyers to make sure you

can you know squeeze a few extra bucks out if they're trying to lowball you or take advantage of a new wholesaler are

there any kind of tips or tricks you found in the last year or so with as many buyers as you talk to that

kind of can help you maybe get a few extra thousand or five thousand or ten thousand more out of a deal as opposed

to just taking what they're offering at face value yeah so if the buyers are i believe yeah

i understand that because a lot of people we focus on the sellers we focus on the sellers but the buyers can make

or break a deal they're the ones with the money they're the ones that's your financial backing right um i would

definitely try to you know communicate with the buyer as often as possible whether you're bringing them deals or

not uh maybe sending them a follow-up email uh every you know every couple of weeks

or every month just seeing how things are going with them things of that nature um if you can get there this is a

hard one sometimes but if you can get their personal cell number um i would try to do that right some of these

buyers and some of them are so connected to their company where they want everything by email um things of that nature but if you can

get your buyers cell number and maybe send them a text or even talk on the phone with them here and there it builds

the connection that makes it stronger and sometimes they do things for you that they won't do for other wholesalers

right um so but if you can't get on the phone with them and it only has to be emailed um i would send them follow-up

emails like hey you know how what does and then also these buyers they understand the market they know what's

going on they're the acquisitions they're the they're the people making the offer so you can even ask them uh every you know

hey are you going into new areas let me know when you break out the new areas i want to bring you deals there or like

hey what do you see what's going on in the market right now are things turning are things still going up um with cost

of materials things of that nature because there's always different factors so um i always i follow my buyers every

month every last one of them whether i'm doing deals with them or not um and i always see what's going on as far as are

they expanding are they retracting um are they going into new markets right

um i always do that no matter what and then the ones i get to actually have their cell numbers i call and text them

and maybe you know have like a five ten minute phone call with them you know just to follow up um so this so the

closer you get to the buyer and the more you build a connection with them the more likely they will do things for you like

uh maybe they say hey man deandre on this one you know we we probably would have paid this price but since it's you

will pay this you know et cetera et cetera so your relationship can affect your assignment fees believe it or not

are you seeing any pushback as far as uh expansion recently uh no they're they're all expanding

they're they're so in some markets it's getting so um like the inventory is

getting so low prices are going up they're not necessarily uh they're not retracting from there they still want more but the inventory is is just

shrinking but when that happens they just like i'll give you an example um in

one market let's say they used to get lots all the time like 10 or 20 lots a month now they're only getting five lots

a month so in this in market number two instead of 110 they'll want 20 more in that market so um they're

they're they're expanding they want more lodge like every day every day every week like i sold the

building company over 30 lots you know and they're like hey you got more and i'm like i just

told you 30. how many were you one you know so it's it's it's pretty much nuts it's nuts you'll think you'll think

when you're working with these buyers like okay great you know got on this he's good he's good and then they reach out and it's like hey man you got any

more like let me work i'm working on it you know you're you're the new land dealer

that's what it is exactly exactly well you can learn a lot you know just picking up the phone and having a five

minute conversation with your builders and buyers you're gonna learn a lot just like you said about the areas and i try to do that

as often as i can to just have touch bases to find out what areas they might be kind of cooling off in and what areas

they might be heating up in and you know sometimes things change monthly you know

and they're not always going to pick up the phone and call and tell you that you know it's on you to understand what their needs are they're not necessarily

going to reach out to every wholesaler or every investor that they work with to tell them their new specs their new

buying criteria so to stay on top of that can give you kind of an extra edge where other people might just you know

kind of keep sending the same stuff over and over again and if you could break into a new area before somebody else

does uh you know with people that are paying good money for some of these lots then you know that can take you a long

way to to getting a handful of contracts before you know before the rest of the the herd gets to them

matt that is that's really good advice because not only do i ask them because some some of them can be slow at it some

they give it to you quickly and then some of them they're only specific to certain areas right um and the reason

what you're saying is like great because i also track so if you if you know the name of your buyers llc

um you need to use it i'm talking about if you because some buyers i use they use two three four five whatever um

yes yes yes so they buy in their company name or they buy in a separate llc i

would put the llc on whatever software that you're using and then track where

they're buying it's like so simple um and i'll see what they bought in the

past three months it's like great they just purchased 10 lots in this city

and within the last three months right um may probably want more you know what they slow down in that area i've seen

them pick it so you can actually track them without even talking to them on your database whatever you're using

prop stream or whatever you're using you can actually track their purchases it's all public record

and then you can see how much they bought for it um which i really love about florida because in texas it really

really confused me when i didn't see prices i'm like whoa where are the prices it was like a

a second dimension i'm like in florida okay they bought 30 they bought it for 30. okay we should offer them this you

know it can help you with your your uh your offering and anchor them right but in texas you don't know how much they

paid for it um i guess unless you find a agent with access to the mls i guess it's a non-disclosure state so the

strategy switches in texas a little bit due to not being able to see the purchase price

publicly um but the point is i put in the llc's i see what they buy at um past

three three months or even shorter than that two or one month um and then i'll just bring them deals there because it

shows that their mind there anyway um and that's without even talking to them talking to them as a bonus and getting

getting the confirmation from them you know but matt that's that's really good advice matt really good advice

it's just like dealing with buyers you know yeah uh john alexander likes to say and a lot of others situations change

same same thing or the sellers you know situations change you could reach out to that same seller 20 times before they

suddenly decide yes i'm ready to sell or your material just happened to be in front of them that day same thing with

the buyers you know reaching out to them especially you know the larger builders that i know you deal with

they're doing a lot of research regularly you know they know probably for a lot of people things that might be

coming down the pike that's going to affect them and their large scale building so if you see them jump to a

particular area or slow down on a particular area or step back from you know maybe a particular size of

construction that helps you to know what to deal with and if you're communicating with them regularly you're

more likely to get that information out of them exactly yep

so deandre can we talk some numbers here i mean there's a few scenarios i want to run by you that i think will help out

people that are watching and listening to this and this is something i do when i look at deals sometimes so i want to know how

you evaluate these especially as somebody who's now buying deals instead of just wholesaling um so let's let's

say uh let's say an average market price for a lot uh a retail lot is like thirty

thousand dollars um you know your builder let's just say a average builder in the area is going to

pay 25 or 26 that's maybe even 27. you know typically that's what i'm finding

on 30 000 retail lots how do you back into your offers and also what would be

kind of the line in terms of what you would want to take down yourself to own and then re either hotel it or list it

and try to get absolute maximum top dollar for it versus just taking the quick assignment and maybe

sacrificing a few thousand dollars with a builder what do those numbers look like to you so in a in an area or a market like that

if i get it too close to around that 25 27 like for example if i get it for like

20 uh like 20 000 uh maybe maybe even if i get anywhere between like 15 and 20

000 i'm probably gonna be more likely to wholesale it um that's probably what i'm going to and

are you asking as far as like how to make the offers or no just kind of

what it looks like in terms of like okay if i can get it locked up with a seller at this price i know the buyers you know

i know what end buyers going to pay this like a builder versus taking it to market to try to get that extra maybe 10

or 20 percent from a maybe just a a retail buyer off the mls gotcha so if so if if the let's say the

retailers are going for 30 if i could get the property myself for 10 000 or less nine times of the 10 i'll be i'm

gonna buy it myself uh and then i have to determine okay great do i want to just relist it and get more on the

market or do i want to sell or finance it i'm going to exercise seller financing before we listen on the market

because of the cash flow so if i can get it for 10 or less and they're going for 30 with that 20 000 in equity i feel

comfortable taking that type of risk so 10 or less uh if i can get it for 10k less in that kind of market i'm

definitely going to buy it buy and hold it um and resell in the future right and unlist it or i'm going to buy it get a

down payment and then i'll take the payments over the next you know 10 15 years so if i can get it for you know

get it for 10 and someone gives me a down payment between the 5 and 10k down payment um instead of it going for 30

right over the next you know a couple of years i can sell it for 35.40 with interest you know um it'll be slow but

you'll make more over time versus a lump sum very uh shortly and quickly so that's that's why i stand on that

that makes sense and then next question about that with numbers is is there a certain let's say you're just getting

into wholesaling and you want to build your cash reserves up what do you think is kind of an aspirational number to get

to before you can start saying you know what now i can take on some seller financing now i can take on some other

avenues as opposed to just grind grind grind jose jose wholesale to build those cash reserves up what does that number

look like to you maybe like a hundred thousand fifty thousand more than a hundred thousand is there a number you would feel comfortable out as a maybe as

a new wholesaler to kind of start dabbling in other areas man that's a good question because i didn't start

buying until about 250 000 but i don't recommend that uh you could

start earlier um i don't it's hard to put a gold it's hard to put a number on that because it's other factors that

play into that because i like for example right i'm a i'm basically a single guy i don't have any kids i don't

have a mortgage i have red but i don't have like a mortgage and stuff like that but if you're a guy would maybe you have

two kids and a wife and stuff like that you may need more to start with than

less but with me i can take more risks i can do more things because i don't have all the

extra so but if i had to just put like a a dead set number on it i'll i'll probably say

a hundred thousand hundred thousand

frank do you have any thoughts on that in terms of like what a number might look like to kind of build up cash reserves to feel comfortable and start

maybe doing some other type of other type of plays i'm kind of afraid of cash reserves i'm

focusing in on other people's money right now with uh storage uh just yeah

i'm actually holding uh in and out of crypto you know it's uh i don't just you know i don't do the hold

on for dear life right now just because you know the markets yeah it's fluctuating more

than they were saying it was going to i realized kind of off topic so i apologize

but uh you know my focus is currently primarily storage uh i'm going to probably

follow some of de'andre's advice here and start uh trying to buy and hold land and you know turn

around and you know sell or finance it so yeah i love it i was actually going to

ask uh deandre uh beyond the this awesome hide with us podcast what is currently your favorite

uh podcast uh that you're listening to or podcasts that are educational or guiding yeah can i listen

to one like a daily um or weekly or monthly right so man i listen to a bunch of them

man i'm beyond with you um but my favorite one has to be uh the robert kiyosaki podcast um it's

called the rich dad radio show i watch that show like faithfully every week um

that's probably number one yeah and then number two uh he has a business card partner called ken mcelroy who does all

his syndication and i listen to the ken mcelroy show and his show is fairly new

um he just started last year versus kiyosaki kiyosaki he's been doing the risk that radio show for like years now

um and i actually went back all the way to when he started all the way up till now caught up um so i would definitely

say um the kiyosaki show rich dad radio is the best i've learned i've learned so much

it's you get some so many different point of view so many different uh perspectives um from that podcast it's

insane you know they talk about real estate they talk about crypto they talk about you know anything that's going on

with the market with inflation and things of that nature um but kiyosaki himself he's a real estate guy

so he looks at it from a real estate perspective you know so that's a dope it's a dope podcast

i agree i love that one for sure that is definitely one of my regulars uh that's on my list

what's your current favorite book oh my favorite book uh man i have a box of them

i have a box um but it has to be the uh the rich dad kiyosaki book a rich dad's

guide to investing that has to be my number one right now yeah i don't know man something about

that book i mean how many times i read it it just gives me it just gives me goosebumps i don't know it's called a

rich dad's guide to investing and it's not even like it wasn't the oldest bookie it's not even it's not the

it wasn't the oldest book it's not even the newest it's like somewhere in the middle um but that book it just it just hits you every time every time you read

it every time i read it i find something new that i missed the last time uh same

thing with secrets of the millionaire mind by t harvecker every time i read it i hear something new

and you know it's and they're both you know they're focusing on mindset very much so

when i um when i read uh the kiyosaki's book one everyone liked rich dad poor dad when i first read it you know it was

an awesome book like i got through it in four days i was like man this book is great but then when i re-read it you

know a year or so later you know wholesaling doing real estate um i figured out that robert kiyosaki was a

wholesaler he actually used to wholesale um foreclosure properties that i didn't

know that yeah me neither until i read it as a wholesaler

right so at first i didn't understand it and then i really as a wholesaler i'm like oh my god this guy was a wholesaler

he would literally bid on properties at the auction you know and win the bid at 30 and then turn

around and sell it to someone else for 40. at the same auction i'm like oh this guy's a wholesaler i mean i don't know

if you can still do that to this day with all the regulations with bidding at the auction and stuff but that's just

something i picked up on and i picked up one when i read the book a year later you know that's crazy

i mean i haven't read the book since after i got into real estate so i have to read it again to notice that but

that's that's the crazy inside i've never known that he was a wholesaler and he did auction properties

so i i heard about that trump was a wholesaler too but like he's he's like wholesaling like like buildings and

stuff like that too so everybody wants to put a bad rap on a wholesaler but everybody's missing the opportunity by

being a wholesaler yeah they don't bother the guys they're doing it on the million billion dollar level but they bother us you know

they're doing a little bit more small levels they bother us but the big guys they're they're good man they're good

so as we get into the third level it's called arbitrage oh sorry not no no no i'm not go ahead

i was just to say at the at the high end level they just call it arbitrage so they're not wholesaling they're not

assigning they're they're doing you know arbitrage you know real you know commercial real estate arbitrage you

know uh building arbitrage storage arbitrage whatever it is funny how those

things change when you just kind of change up the wording a little bit right yep exactly so deandre as we get ready to wrap this

up here um one of the podcasts you did five or six months ago here with the hive you had mentioned that you're doing you know you

had strung together a few consecutive 100k months can you give us an idea of what your monthly kind of workflow looks

like is it are you around that level now does it kind of dip up and down depending on the month uh what do those numbers look

like if you don't mind believe it or not you know getting the 100k consistency is like it's tough like

even if you do it two or three months straight it's tough so um this month march is gonna be my first

100k month um for this year um this month i'm supposed to do around 115 to

120 000 right so i would hope that you know january march april may that follows but it's still up

and down it's like great for march i did 115 120 crate that's awesome but then april i may do 50 or 40. you know so

getting that consistency is still tough anybody tell you that's easy to line to you um

but um i do have ones where i can't do six figure months but obviously the goal is to be come

more consistent with it um and that's what i'm doing every day i'm trying to figure out like okay great

why am i doing 120 in this month and 50 next month right like was the market to

slow down did we not make the same amount of offers that i hit a different list that i didn't usually hit i'm always trying to figure out and tweak

what is going on and why it's not that consistent so and that's an everyday that's an everyday battle but you fight

that battle every day it makes you stronger and you're still striding you know you know if i did 80 000 it's like

okay great 80 000 still a lot of money right i'm still good but i would rather be in the six figures you know

and that's something very inspirational to strive for for that consistency once you start seeing those big months come

in i mean i think a lot of human nature is to take your foot off the gas a little bit i'm not suggesting you are at

all but i've been guilty of that before on good months and then you kind of pay for you take a week or two or you pat

yourself in the back don't do the things that you've consistently done before you're going to find yourself the next month because this is such a

transactional business with the wholesaling part of it um you know you can suffer pretty quickly if you're not able to stay on the horse and continue

being consistent with that so i think it's uh i think it's incredible the amount of success that you've had

obviously you put in a ton of hard work you deserve it all and uh look forward to chatting more about you know

all the cool things you're doing branching out in the different areas and uh continuing to help other hive members

and everybody else in the real estate community uh and i just think it's fantastic yeah and i think i think matt i think

that has a lot to do with your mental as well um your mental and how strong the team like how strong of a team you have

like it's like okay great you could do six figures in a month you might feel like oh i just did i just did a hundred

thousand i'm good right um and then the next month you don't do is good because you needed like a small break in between

like a mental break right um so depending on where you are mentally and if you have like a strong team i think

that's what's also going to help you be more consistent because it's like great if i get a little mentally burnt out my

team picks up the slack and they keep it going um so having a strong team can

help create consistency as well frank do you have anything to add before we wrap up here with deandre

no i think i think you hit it dead on on the head there it's uh you know teamwork you know to be generic teamwork makes

the dream work but yeah when you know and you know taking the foot off with previous companies

that i've had when we took our foot off we didn't completely pay attention and we ended up burning through a lot of

money because we weren't paying attention to the fact that we weren't bringing it in the way we used to

with you know some of the projects that we had so we had to stop back and refocus to get back up to that consistency and

even our team we allowed our team to slough off also so you know that's you know one of the key things you know one of the key

lessons that you know that deandre just reminded uh you know reminded me of uh is uh that issue there so

appreciate it i'm always having a great conversation i'm always trying to look like a couple of months years ahead um

because we the the more the more money you make from assignment fees and the deals that you're doing right you're uh

you're you're it kind of you get you get a little comfortable it's human nature everyone does it's like great i just made six figures right so your

comfortability goes up a little bit your intelligence also just kind of declines you know but when the tough months come

when you're not you know instead of doing like 100k month you only do 20 grand this month now you're scrambling

like okay great whoa i just did 20 that's horrible what do i need to fix what i need to change uh one thing about

me whether it's like a six figure month or whether it's a 20 000 a month i'm always trying to tweak and make

different uh different things and i'm always trying to stay on goal you know um

i'm always trying to be on goal like always on the grind no matter what what you know no matter what the month brings

hey imagine okay i was just gonna say matt asked you

know what what six months out uh you know where deandre was six months from now where's deandre a year from now

two years or five years down the road you want to get to just sell our finance do you want to get to just ground up

construction you know is is there a market that you haven't tapped yet you thought

you know can i do that is it possible yes so um i mean with uh yeah that's one

thing about real estate like you end up one place and then after doing some deals and meeting different people you like do an entirely

different niche you stick with that um i can definitely see myself uh doing ground up construction um like building

homes um but i want to do like a build to rent model right instead of a lot of

people do the build the flip model which is very profitable i wonder how a build to rent model would look um and not just

doing that in like once one state one area i'm talking about doing it in

nationwide kind of not all 50 states but um just in maybe in a couple of different states um because you know

different areas there's different markets when when things crash down you don't know what mark is going to take

first and i don't know i just i want to be diversified as far as great i do want to have some new builds in florida some

new builds and you know north carolina some new construction homes in texas right um but i would rather i'm leaning

more towards the build to rent model um that's just kind of something that's that's where i'm at right now um

and that's well that's as far as that's what i'm thinking about as far as i'll be in the next couple of years um

because i don't know i really like that model you know um it's nothing better than being in a new construction home

you know less maintenance uh and then you build it for so a lot of a lot of building companies

when they build these spec homes they build them to flip them right so they make them all decked out and make them look good great but when you do a bill

to rent is different you actually you're building it for a tenant so you're gonna make it more tenant resilient you know

what i'm saying um so i really like that model i think that's something i'm gonna pursue over

in the future so all the vacant lots that i buy and i'm holding on now um i don't really intend on selling them

unless obviously other than the seller finance ones but the ones that i buy in the future that fit that model i'm gonna

definitely do build to rent models on them most definitely uh get with me uh

afterwards uh you know via dm at some point or email me there's two builders here in jacksonville that are doing that

and uh you know at any point in time like you said earlier you know you're talking about builders with a lot of lots these guys at any point in time

will have fifteen hundred to two thousand lots that they're holding and every other house they build one's

built to sell one is build to build the rent that's a good have a very different material list

uh you know they and you set it you know they're building a little bit more resilient uh a little bit more turnover

friendly and they have the advantage when they get the investors for that and that you know when you say a brand new

property like that you've got 10 maybe 15 years before you're going to have

those major issues come up the ac should be good for for a long period of time you know

the you know the you know all the cooling you know uh your kitchen equipment and stuff like that washer

dryer if you supply that the roof should be good for a lot you know a fairly long period of time those are a lot of capex

expenditures that normally you know that are going to come up you hold it for that period of time then their goal is

to turn around and flip them at 10 years or at the 15 year point to somebody else and let all those problems become

somebody else's problem yep exactly yep

so i just wanted to thank you man i uh i really didn't know what my business why was you hit your six figure month and

i'm like man we got to help thousands of people hit six figure months i appreciate that and i really want to say thank you for that

but um you got to let us know when you hit a million dollars because

that that's going to set a new level to my to my goal and we're making millionaires so whenever we hit that

million dollars i'm like okay got a first millionaire let's do a thousand millionaires you know

so i i really really appreciate you giving me that opportunity just to participate in whatever this is

yeah no problem that's pretty awesome man you're great man you anthony agree from the first day i met anthony i'm

like man this guy he's going to be a long time friend all right then he introduced me to you and i'm like yeah these these guys are awesome they're

they're rock solid i knew from day one you know just how giving anthony was and then you kind of you kind of

complimented that when i met you so it's been great since day one since last year man is awesome

well it's an incredible community here with hive vine and you're obviously a big part of that deandre thank you for

coming on today and chatting with ever with all of us today thank you to frank thank you to daniel and thank you deandre and uh look forward to chopping

it up again here soon seeing what else everyone is up to and uh much success in the meantime

thank you appreciate that matt all right see

Ep 143- Scaling Your Real Estate Business Using Hivemind With Deandre Anderson

Frank Spaulding

Matt Rogers

DeAndre Anderson