EP 596 -Valuable Lessons Learned From My First Rehab

NCS 596 | Real Estate Lessons

NCS 596 | Real Estate Lessons

 

In real estate, there’s always a lot of upheaval going on. We can learn a lot about what’s happening right now by going back years behind us to take a look at what happened in the past. In this episode, Scott Carson breaks down some of the lessons learned from his first rehab deal when he was starting out. He also shares what he would do differently now and why you don’t need a partner.

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Valuable Lessons Learned From My First Rehab

In this episode, I’m going to share some of the lessons that I learned from doing my first ever rehab project. With everything going on in the market and being chaotic, we all had some time to sit around and figure out what’s going on. With the market being crazy, housing and single-family homes, rentals, or the commercial market as well too. In real estate, there’s a lot of upheaval going on. We can learn a lot about what’s happening around now by going back many years behind us to take a look at what happened. I went a little bit further back because I got busy diving into individual deals that I’ve done in my fifteen plus years of real estate experience. I started going back and said, “What was this property worth?”

I got in my truck and drove around Austin. I looked at some of the properties that I’ve bought, rehabbed, subject to, and some of the projects that stood out in my mind. Over the next few episodes, I’ll be reviewing some of those deals and break them down. There’s a lot of valuable information in closed deals, especially when it comes to marketing, the workout strategies, how you ended up making things work, or not work along the way? I’m going to share some of my triumphs and then also some of my failures on some of the different deals that we’ve seen over time. One of the most important deals that any real estate investor can do is the first one.

Learn By Doing

We all learn more by doing than sitting through a workshop, a webinar, or in this case a Zoom call a lot of times. We all learn a lot more so than anything else by doing and taking action and trying to be an educated idiot. There are a lot of people that are well-educated but they’ve never pulled the trigger on a real estate deal. It’s a different mindset. They don’t have the expertise. That’s one of the first things I want to put out there to all of you that are reading. If you’ve pulled the trigger on a deal and looked at how big it is, kudos to you. You have a lot more going for you now because you’ve stepped out on that ledge and on that branch and taken action on it.

Whereas a lot of people, they scratch search by going to a workshop and never ever doing something and taking the action. For those of you that are embarrassed because you didn’t buy more deals, don’t worry about that. You’ll get to it. The fact that you’re taking action is head and shoulders above those that aren’t going to take any type of action. Many people here who kept Showtime like the show Billions and I was watching the episode were Axe’s sitting there in a retreat. He told these bankers, “They don’t know what, let’s go out and buy, trade and be a riverboat gambler and all these different things. They’re sitting in their comfort level of being a banker.”

I chuckled a little bit. It’s good to be the bank, but not everybody is a bank. A lot of times we get started by going to workshops, learning how to wholesale, how to put things under option. Ron LeGrand’s book How to be a Real Estate Investor with None of Your Own Money talks about options and wholesaling. It is one of the most impactful books for me as a real estate investor and I still highly recommend it to everybody out there. If you think back to my first deal that I pulled the trigger on, it was true real estate investment. It’s not me going and buying something retail off the MLS. I’m not talking about that.

My first real estate investment deal where I had to go out to market for it, raise capital for it and do the workout in some fashion. That’s what I want to talk about. This property is located in Round Rock. If you don’t know where Round Rock is, it’s North of Austin right up I-35. It is the headquarters for Dell computers. It’s also the home of the Round Rock Express, which switched between being the double or triple-A affiliate for either the Texas Rangers or the Houston Astros. It was owned by Nolan Ryan’s two sons. Reid Ryan is the President and then he’s got a partner that does it. I love baseball.

Why did I choose Round Rock to buy my first house to move to begin with? Round Rock is an up and coming area. It’s in Williamson County, which is when you’re moving to Austin, moving to this neck of the woods from graduate school at Southwest Texas State. Pick the area that was up and coming although it’s quite a bit of a drive for me to get to my job. When I was married at the time, I picked her at her job on South Austin as well. We could have probably picked a much more ideally closer location, but we were renting up North and we found our house there. This goes back to 2006. I’d been working with the Bob Leonetti and Jayme Kahla for a couple of years in the mortgage business for 2, 3 years.

We were getting over our lumps. I’m making good money as a mortgage broker at the time. I’m doing a lot of great deals and a lot of loans for investors across the country. I started putting some money into my marketing getting the local market now. If you go back to 2006 and 2007, things were still booming in Austin. We had a bit of a bubble earlier in the 2000s where there were layoffs. We have the high tech with the bubble bursting on the dot-com era. It affected us a little bit more so in other areas. It affected me originally. Dell computers laid off a lot of their staff as they move their shipping and production and some of their stuff to Memphis.

Marketing

The two rental properties that I bought at full retail became vacant and I became a deadbeat borrower. Luckily, I saved their house. It was two rental properties that we bought retail. I proceed to lick my wounds for two years to get caught back up. Back on board, getting rock and rolling and making some money. I started putting some money into marketing. What did I do? For the marketing side of things, I was like many other people out there. I was sending out postcards, yellow letters and a variety of things. What I would do is pull the foreclosure list. There was service here in Texas called Roddy’s List that was around for years.

It pulled the pending foreclosure lists for the top 15 to 20 counties across Texas, the bigger ones. You could purchase that list for $35, $45 a month. I bought it for Williamson County and there are about 600 to 700 pending foreclosures on there. One of the things that I did is, I was seeing foreclosures and yes, I did the yellow letter aspect of things. I pull out a yellow tab with the red ink and you write on it, “Hi, my name is Scott, my wife’s name is such and such. We would like to talk about buying your house at such an address.” Many of you guys have probably seen or even received 1 or 2 letters on them.

I know if you’ve got an investment property, you’ve probably gotten a letter. You had a property go vacant for a while, you’ve got a letter from an investor like that. John and Donna MacNeil started that aspect. I got a chance to spend some time with them. They are great, lovely and beautiful people. I started in marketing and sending out letters. I didn’t do postcards because I found out that I could probably have some postcards, while it might be faster, it would cost me a lot more. On a bootstrapping budget, like many investors, I said, “I’m not going to handwrite. I don’t have the time for that but I will print some letters out.”

NCS 596 | Real Estate Lessons

Real Estate Lessons: A lot of investors hide behind a 1-800 number or a website and not really put themselves out there. That’s intimidating when a borrower is stressed out.

 

I printed some letters out. It’s the same thing. “I’d like to talk to you about your property at this address.” To do a mail merge and drop 700 letters in the mail. One of the things that I did differently than most real estate investors since I had been in a rough step-up period beforehand, as I was thinking back a few years, I was like, “What would I like? What would have made me call the person, send a letter out?” I said, “A lot of investors will hide behind the 1-800 number. They’ll hide behind a bandit sign. They’ll hide behind a website and not put themselves out there.” That’s intimidating when you’re stressed out. That’s intimidating when you’re not hiding your mortgage payment and you don’t have any type of answers.

Borrowers are stressed because they’re afraid they’re going to lose their homes. They know they’re not going to pay the bills. It’s the same mentality it’s going on in the country. People are stressed. People are making a decision between them making a mortgage payment or the rent payment and having food on the table. I thought to myself, “I had a good photo of me from my mortgage side.” One of the things I put down at the bottom of the letter I send out and make it a one-page letter, anything longer than that, it’s a waste of print and ink. At the bottom, I put my face, me smiling, suit and tie and I said, “PS, I put my picture on this letter so that you know I’m a real person with real solutions.” I would send out letters. I didn’t send out 500 or 700 always at the same time. Sometimes it would just be 50 because that’s all we had in the budget that month. It’s 100 stamps. Stamps are still expensive then and you’ve got to figure out the time.

In Texas, by the time you’re buying the Roddy List, you might only have two weeks before the foreclosure auction takes place because the foreclosure auction is always the first Tuesday of the month. The Roddy List would come out the first week of the month. You have 2, 3 weeks before the foreclosures would happen here in Texas, they happen every month. You had to be joining on the spot to get your letters out. What do we all know happens when you’ve got a limited timeframe like that? If you’ve got 2, 3 weeks and you dillydally, you’re going to get the phone calls the week after the foreclosure auction.

You don’t often have a lot of time to negotiate with the banks. They suspend things or they’re trying to stop it while you try to work out the situation if a borrower calls you. First of all, you’ve got to get the borrower to call you. We all know that with direct mail, you are going to see a 1% to 4% response rate. Send out letters. I also at the same time was sending out letters for the mortgage business and we did a lot of mortgages, a lot of refinances with World Savings clients. World Savings was a big client when we were doing a lot of origination with them. I sent out a chunk of letters as well. It’s the same letter but different, “We can help you out. Here’s my photo.” It’s the same thing, “PS, I gave you my photos so you know I’m a real person with real lending solutions for you,” and send it out as well.

My First Rehab Project

I know that when I pulled the list of deeds from World Savings that were five years old, little did I know that this property at Oak View Drive, the borrower was going to get busted. Not only did they have a World Savings mortgage roughly five years old, but they were also facing a foreclosure list. The property we’re talking about here is in Oak View Drive and Round Rock, Texas. It’s been bought and sold twice after we got involved with the deal. I get this phone call and the borrower’s like, “I’ve got your letters.” I’m like, “Letters? Great.” “Can you come over and talk?” I’m talking on the phone. He gives me an address. I’m like, “That’s not too far.”

I was living in Round Rock at that time. I’m like, “That’s less than ten minutes away from my house. Sure thing.” I come over to the house and it’s a husband and wife and their three kids. I pull up and it has a gorgeous curb appeal. You got a red brick, two-story house, a huge Oak tree in the front yard. The yard looks decent. It’s a two-car garage and the front of the house, a dining room nook. I’m like, “This is bigger than the house I was living in.” I was living in a 3-2, 1,695 square foot house. I’m like, “What is this 2,200 to 2,500?”

The neighborhood is great. It’s got big houses on both sides. It’s at least 2,000 square feet inside. It’s well-wooded. It’s on the west side of I-35, which was the first built. It’s a little bit older side, but not anything bad. I’m excited. I go on in the borrower’s outside and I get to talk to this guy and his name is Jerome. I’m talking with Jerome and he tells me, “I’m facing foreclosure. I’ve been out of work for six months. I can’t pay the mortgage on it. My dad financed this to us.” He was on the mortgage. He can’t pay because he’s sick as well. “We’re afraid we’re going to lose this place.” I’m like, “Let’s see what we can do.”

I let him sign a letter of authorization to release information. I asked him, “What made you call me?” He goes, “The reason I called you, Scott, is because I got two letters from you. One that hopefully refinances and another one that you had a solution for us of some sort. You could try to help us out. I like your picture at the bottom. You’re a real person with real solutions.” I’m like, “Bingo.” That worked. I get on the phone, I’m calling the bank and the mortgage had been sold to Chase at the point. It was no longer a World Savings loan. It had been sold and that’s okay. I knew A, I wasn’t going to be able to try to buy the note at all. B, he was roughly about 7, 8 months behind. The payments were about $800 a month. He was getting up over $10,000 behind. The taxes they hadn’t been paid either but they had a decent interest rate on their mortgage.

I’m on the phone with them. I said, “What do you want to do?” They had about roughly $30,000, $40,000 equity on the deal that had been on the valuations and stuff at the time from what I remember. I said, “Can we work with some things?” The banks are like, “You bring the payment and you take over.” Just bringing the payments to them and they will stop the foreclosure. That was all that Chase wanted to do and the attorneys as well. I’m like, “I’m going to come up with the $10,000 to $15,000 it needed to come in.” I hadn’t taken a good look at the property when I was over there. It was a little bit dirty. I was like, “It could be normal wear and tear from living in the property family, three kids, and stuff like that.” I said, “It’s fine.”

I get back, I called Jerome up and told him, “This little bank isn’t going to stop the foreclosure. For the most part, they want to get their full amount due to $10,000. You’ve got some equity here, there’s not a solution for you. The thing is, if they foreclose and based on the repairs needed to the property, based on what I can see, you’re not in an equity position for the most part.” I had my whole one-page checklist of going through and pulling out like, “You might need to work. Your AC looks like it’s old and needed to be replaced, paint and carpet. Do you have the money for that?” He was like, “No, I don’t.”

I said, “What do you want to do?” He goes, “With my dad financing this and him being sick, I would like to walk away from the property.” I’m sitting there trying not to show, “He wants to walk away.” He goes, “I need some help with moving costs. I’ll be willing to sign up and deed the property over to you if you can do something with it and you help me with my moving costs.” I was like, “Seriously?” He was like, “Yeah.” I was like, “Let me think about this. Let me walk through and take some photos.” I walked back through the property. It’s not a bad property. There weren’t holes in the wall. It may need some work on it and as I started reviewing, it was dirty.

NCS 596 | Real Estate Lessons

Real Estate Lessons: Trying to do it all by yourself is not a smart thing. You might save costs on labor, but the time is going to eat you up.

 

The ceiling fan in the kitchen, I’m not joking, I had a chance to look at it, probably had a half-inch of dirt on top. Don’t get me wrong. We’ve all got those dirty ceiling fans, but this is what it was like. You could reach up and touch. Not the ones at the top of 20 or 12-foot ceiling where it’s hard to get to. This one you could reach up and touch. It was dirty. I was like, “Fine.” The house is one of the greatest, the carpet was much trashed. The paint was with some spots on it. The backyard needed to be cleaned and he had these nice raised beds along the fence. It was way overgrown and the garden at the back, they didn’t take care of it. It had some junk in it.

I said, “Let me figure it out.” I go back and I’m like, “What am I going to do?” Lo and behold, I’m talking with my buddy, Boyd. He and I had moved out of Bob and Jayme’s office to run everything on the mortgage side of the Northside of Austin. I told him about this deal he’s got going as well. He goes, “My mom came to me and got about $180,000, $200,000. She asked me to reach out to invest.” I was like, “Do you want to jump in and partner on this? We need roughly about $20,000, $10,000 payoff to get Chase back on track, and then probably $5,000 to $10,000 in repairs. We’re going to have to put a new AC in and we need to do paint and carpet. The rest of the repairs, what I can tell, we could do ourselves. The internal painting, stuff like that and we could knock it out.”

We agreed to do it. It was awesome stuff. I went over. I had Jerome deed the property over to our entity. I called the Chase Bank and we sent a wire in to make the payments to avoid the impending foreclosure. It all happened in a couple of days. If I hadn’t said anything about this deal to the people around me, I would have never known that Boyd and his mom had some money and stuff. Lo and behold, subject to financing, we get this deal. We’ve reset the clock. I’m like, “Let’s get rocking.” We called the bank, checked numbers and checked taxes, it’s pretty much good and stuff. The next weekend, we started the rehab project. We cleaned stuff out.

Here’s the funny thing. We showed up on a Friday as they were supposed to be moved out and they weren’t moved out. I guarantee you when we offered to pay as many expenses, Jerome and his family hadn’t even started packing. They were sitting there trying to chill. Even though I said, “You need to be out this weekend. We gave you a week, you’ve got to be out.” I went and got the rental truck for them. Rent it and pulled it up. I’m there. Boyd was there, Pops is there and we’re helping them move stuff into it and breaking stuff down.

The more we started hauling stuff out of the house, we start to see that they had not cleaned the house in a couple of years. It had to be at least a year until they had swept properly or clean behind the fridge. You move the fridge and we all have cobwebs and stuff that fall underneath there. This was disgusting. There was a sandwich that had fallen behind the fridge. I find out what the smell was. We cleaned this stuff out. We hired a dumpster. We dumped it full of stuff. We were pulling stuff out. They didn’t want it left there. We cleaned out the backyard, mowed it, and then proceeded to figure, “What the heck are we going to do?”

They have cabinets that we don’t want to rip out. They have a decent cabinet. We pulled the fixtures off the hardware off there. It had a ceramic tile in the kitchen, which was nice and neat. It needs new appliances for sure. The fridge was shut. The stove was completely filthy and the AC. Let’s put the AC in last because the one that’s in there is working okay. I got the power turned on and the water turned on and over our names. We started painting. We got the paint done. We did over about a month of rehabbing it ourselves. This is the biggest lesson learned as we tried to do it all ourselves, it’s like, “I can come by here at night, watching all these Flip These Houses and whatever they are.” They’re all doing it themselves.

I grew up in a hardware store. I can do it all. My wife had left her job at that point. She was like, “I’ll come over. I can help out.” She was over there doing the day painting, doing it manually. We’re trying to spray paint, but most of the time it was rolling work, and it’s a lot of work when you’ve got a two-story house, 2,100 square feet, painting all the rooms and everything. We cleaned up on that. Doing it all yourself, there are a lot of lessons. I should have hired a cleanup crew to come. It has been a lot cheaper to pay them $1,500 versus doing it all ourselves. It’s the same thing with the paint crew. To get somebody in there to do it would have saved us a lot of time.

Come in 90 days, we finally got it done. We’re getting ready. We got the AC moved in and we’re getting ready to have an open house on a Saturday and we are all excited. The yards mowed and manicured. The backyard was cleaned up so it looked nice, it’s the beautiful aspects of things. We walk into the house and everything’s fine. I go out to put the open house sign in the front yard and I turned around and came back in and I saw my wife at the time peeking out of the window and she looked like she has seen a ghost, literally scared to death. I run in and I’m like, “Are you okay? What’s wrong?” She was like, “Scott, the ceiling in this spare bedroom has caved in.”

I’m like, “What?” We know with the roof we take a look at, the roof was fine. I walked in there and sure enough, the whole ceiling, it caved-in in the spare bedroom. “What is it?” I was like, “We just put the AC. It’s got to be something with the AC.” We called the AC guys. They came over and was like, “We forgot to take the drip pan, plug it out so it would drip naturally.” What happened was the drip pan got full. It overflowed. It wetted the sheetrock and the installation all came in. It was fine. They said, “We will get it taken care of.” We’re not having an open house that weekend. It came out, they redid the ceiling, retextured it, repainted it, cleaned the carpet up at their own cost and we had an open house.

We hired a realtor. Diane Hicks came who’s a friend of mine. I met her doing a loan for one of her clients and she listed the property. She did a flat fee, $500. We listed it on the MLS. We had a full price offer roughly within about 30 days with few concessions here and there and sold. We were able to sell the property. We did run over our budgets. We only checked to pull a statement from Chase. It didn’t give us the full payoff amount. We miscalculated that with the back taxes over the taxes paid. We ended up selling it. We still ended up at about $5,000 afterwards. Luckily our investors were like, “We’ll get a couple of deals, and we’ll get that $5,000 picked.”

Lessons Learned

I made no money on my first flip, my first rehab project, but I learned a whole lot of lessons. It was expensive tuition. Here are the biggest lessons I learned. It’s part of the reason I don’t like rehab. We have rehabbed plenty of property since the first one. One, trying to do it all yourself is not the smart thing. If you think you’re going to do that, you’re not going to save money. You’re going to waste money. You might save costs on labor, but time is going to eat you up. Speed is the key. We could have sped up the rehab on this property. What should have been 30 days, instead it took 90 days. Another thing too is have specific guidelines in place for the borrowers, if you get them out of the property.

NCS 596 | Real Estate Lessons

Real Estate Lessons: Focus on what you’re good at and outsource what you’re not good at.

 

I gave them a bit of cash for the moving and stuff like that. I didn’t give them on the frontend. A lot of people will give money to people on the frontend and they’re not going to be motivated to move and be like, “I’ll stay here and live for free after you do any work.” It turns out the borrower was laid off for lack of work. When we showed up on that weekend to help him check the property, he was drunk off his butt. You could tell by the number of beer cans and bottles we found in the garden in the backyard and the shrubs and stuff like that. He’s a heavy drinker and it may have led to him not having a job.

We should have hired a realtor full-time to do a full listing would have helped us out with that because we didn’t stage the property. It took a little bit longer. We ended up making some concessions, but we did a good job though. Curb appeal is nice. We didn’t do much landscaping. There were a couple of bags of mulch. We cleaned the yard and that was relatively easy. The biggest thing that I learned from this too is to make sure your partners have the same motivation as you do as far as if you’re going to rehab side of things. Me and my wife at the time, we did 90% of the work. On the weekends, we were over there and on the nights, we were over there. The business partner would show up every once in a while like, “Sorry, my wife’s going to a concert. I’ve got to babysit.”

That got old and old because there’s only stuff that two people could do when they needed a third person to fix some things. We had to come to Jesus’ discussion like, “I’m here. We’re here. We’re working for less than minimum wage on this deal to get this thing done. You need to be here. It’s more important for you to hire a babysitter and you show up and help us knock this out. Three hands will make the work go by a whole lot faster versus 1.5 or 2.” That was one of the biggest lessons I learned is that you don’t need to partner with somebody that does the deal, especially they don’t have the same motivation and the same work ethic as you do. That was one of the most important things.

I love the man. We are still great friends. We still talk real estate stuff, but we realized at the end of this deal, “If it wasn’t going to be a wholesale deal or some sort of things, if it was going to be a longer rehab, we need to go down a different path than that.” That was a valuable lesson on that aspect. Another lesson learned on this, make sure the AC pulls the drip pan plug. That’s a big important thing. The second big thing is a cleanup crew for $500 to $1,500 would’ve saved us a lot of time. It would have helped us tremendously out there. The carpet people came and did a great job. I still remember picking off the pallet for roasted mushrooms and roasted cashew. The two pink colors we used on that and the white trim.

There are other things we did. We bought a lot of our new doors we need because almost every bedroom needed a new door. Another feature is we went to Habitat for Humanity and that’s a great place to go to. That was a lesson learned. One of the things that I’ve always liked doing when I was doing my rehabs is having some features to the property. When you look at it, it’s pretty nice. We painted the door green in the front yard versus black. That was a nice kick to it. I could’ve gone red a little bit but I always like putting a nice light fixture in the property and we found this nice pan light fixture that we put in the kitchen. We put it over the dining area and that way, when people are driving by, we had that light on and painted the picture of the kitchen. That was one of the things that people said, “We like it. We drove by and saw the light on. It looks like we would be sitting there having dinner, looking out over to our front yard and see our kids play in the front yard.” We did that.

We didn’t do much on the garage besides putting a fresh coat of paint down on the floor to cover up the grease and the oil stains. I left the workbench the same. We cleaned up the garage. We didn’t spend a lot of time on that. We put new doors in the master bedroom. We didn’t have to rehab the bathroom. We put new toilets in there. This was in Williamson County so we didn’t have the feature that they do in Travis County. We did put new toilets in there, which we installed ourselves. It was not too difficult to do. It’s a little stink on you, but it’s pretty much the same. This is $5,000, $10,000 rehab with a few mistakes on there. We could have had this to market maybe gotten a little higher price on, but we were glad to get this thing sold and done, especially when you start looking at 90 to 120 days for a light rehab. You learn a lot.

You learn that delivered is better than perfection. Not to do the work yourself and also, always double-check your numbers. One of the biggest things is realizing that the number on the bank can always change. The taxes have been paid by Chase and then adjusted our numbers and we didn’t double-check the callback taxes. We missed it completely. When I called to check the taxes, it showed that no taxes were due, but the payment at Chase hadn’t been reflected yet that Chase paid the taxes yet. We called during that timeframe of the transition and totally missed on the back taxes that they paid. There are a couple of things there for you.

I look back at this property. I drove by it and it’s gone up in value. It’s gone up to over $100,000 in value in thirteen years. It’s still a great little neighborhood and that’s the thing. The person that’s bought it lived in it for about three years. They sold it to a new couple. They had a couple of kids out there playing. You have to realize that you learn a lot from doing deals. I learned so much more. I did not want to spend my weeknights and weekends doing rehabs, especially if it’s going to be something major. Even though I was getting ticked off the little things, I was like, “I get ticked off for the bigger things.” I should have taken this inside a little bit better. Focus on what you’re good at and outsource what you’re not good at. It was one of the most important values and important lessons I’ve learned.

The thing here too is don’t be afraid to make mistakes. Don’t be afraid to get out there and take action. You never know. I look back at the conversations I had and trying to think of the ways to get outside the box. Taking what I had learned and applying it was one of the most valuable lessons anybody could learn. It’s a gorgeous property. The thing you look at the neighborhood, we saved the value in this. If this had gone to foreclosure, it would have affected the rest of the properties there for a little bit and it would have rebounded for 12 or 13 years. I always look back with fond memories of this property, more lessons learned and the fact that we took action and applied what we learned. It worked out for us in the long run.

It’s not a bad day. You check it out, “You’ve got the deal done, pop the cherry,” or whatever you want to say about that aspect of things. I encourage all you that are reading, I don’t care what you’re doing in real estate. Hopefully, you’re doing something, notes, wholesaling, subject tos, residential or commercial. We all remember our first deal better than a lot of what we’ve done. I look back at the thousands of deals, properties, and notes I’ve bought over the last few years. It was funny. I found myself driving in this property easily without even thinking about it. There it was and I could not help but chuckle and smile. The great thing too about this is we were rehabbing and working on the property. The neighbors came out and shared a little more. They were like, “We are glad to see somebody take care of this property.” The neighbors were loud, they were fighting, and their kids were all over the place. They were like, “This is such a pretty property. We’re excited to see it being rehabbed.”

We could have done a better job marketing to people while we were rehabbing. We did put a couple of bandit signs out there. “If you’re interested, give us a phone call.” It’s before the time of a lot of the text messages and some other services, but the thing is don’t do it all yourself. Outsource it. Help somebody else out. Give somebody else a job to come and do what they’re good at whether it’s carpet, painting, cleaning up, and roofing. You’ll learn more about that in the long run. Like I said, the first deal, I learned a lot of lessons from our first rehab. What I like to do, what I don’t like to do, who I like to partner with, what I don’t want to partner with, and specific due diligence and things that you don’t want to miss out on in the long run.

I consider this maybe not a home run, but definitely a hit in Round Rock. Hopefully, this is valuable to you guys and gals out there. I would love for you to send me details on your first deal. Let’s talk about your first deal. Let’s get you on the lessons learned here on the show. Feel free. Drop me an email at Scott@WeCloseNotes.com or schedule a phone call with me at TalkWithScottCarson.com. Let’s talk about your first real estate deal. If you’re watching this on YouTube or video replay, share in the comments below about your first deal. Tell us about it. If you’ve got a photo, I’d love to see it. I guarantee we’ve all got photos, which is before and after photos. Hopefully, it’s helpful for you. Go out, take some action and we’ll see you all at the top.

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