Alex made $40,000 on his first real estate wholesale deal. Wholesaling has enabled him to earn enough money to flip homes and he even recently purchased a laundry business! If you want to learn more about wholesaling, tune into this episode.
Key Talking Points of the Episode
00:00 Introduction
01:10 How did Alex make $40K on his first wholesale deal?
02:32 How did Alex get in touch with the homeowner?
03:29 What is Alex’s background?
04:31 What kind of freedom does real estate create for investors?
06:56 How is Alex’s company structured today?
07:37 What kind of deals does Alex and his team focus on today?
08:23 What are the most important KPIs to track in your real estate business?
09:57 How many deals did it take before Alex made his first hire?
10:43 What was the biggest change Alex made through the years?
11:23 What is Alex’s favorite piece of real estate investing?
13:35 Why did Alex decide to venture into other real estate strategies?
14:56 What other businesses has Alex invested in because of wholesaling?
16:38 What does the future look like for Alex?
17:55 How can you connect with Alex?
Links
Instagram: Alex Peransi
https://www.instagram.com/lexthegodson/
Instagram: David Lecko
https://www.instagram.com/dlecko
Instagram: Ryan Haywood
https://www.instagram.com/heritage_home_investments
Website: Deal Machine
https://www.dealmachine.com/pod
Website: Heritage Home Investments
https://www.heritagehomeinvestments.com/
This episode is for anyone that's tired of working in a laundry mat or dry cleaners or fast food restaurant and wants to have the freedom and flexibility to do what you want and when you want. Through this episode, our guest today was able to purchase a dry cleaning business because of his ability and freedom and flexibility through real estate. My name is Ryan Haywood, back in 2019 I did a 30 day wholesaling challenge and I got my first deal done in 14 days since then I've gone on to do over 450 transactions. And my name is David Leko, I created the software called Deal Machine that's helped over 10,000 people close their very first wholesale deal in all 50 states and our guests today made $40,000 on his first deal and I mean how long would that take to earn working it a laundromat maybe a whole year he made it in just a few months and then he was able to buy a laundromat make it more profitable and it's just have like he's having a ton of fun playing Monopoly in real life. I know you guys are going to enjoy this episode. So Alex, how much did you make on your first wholesale deal? My feel like I got lucky I made $40,000 on my first wholesale deal. It was a tax for a clue. Yeah. Now I'm super serious did it was a luck of a draw really a tax foreclosure sale came up right place right time than a young lady and it's such it couldn't pay the taxes on her house. You know like $20,000 and I gave her that hope that she needed to get the house paid up and you know put some money at her. Good feeling actually. Wait, how did you find her? So I pulled a tax foreclosure list, funny enough I was using Deal Machine at the time as well. So I was doing some driver for dollars found her on my driver for dollars list, but also noticed she was on the tax foreclosure list. Okay, so that means she hasn't paid her taxes and as government was going to kind of auction off her interest in the property, right? Right. So in Kansas, that's my market a seller has five years to pay their property taxes. If that homeowner does it, then the city will auction off their property. And essentially got it. Oh, you caught her before that process happened, right? She she was not being auctioned off. You caught her because her house looked down. You got in touch with her. How did you get in touch with her? Oh, my God, I touched with her through Instagram. So I went through the whole process. What, you had her driving for dollars and she's on the tax link list. How did you reach out via Instagram? How did you find her there? So, you know, looking at the public records, you know, everybody's name is listed as a property owner. Could get a load of her via skip tracing left a sticky note of a door door, not the apartment, no answer. And then finally, as a K look, there's got to be a way this, this, this young lady's 24 years old. She has an Instagram account. D under, you know, I'm in her DMs for the right reasons and we got a deal locked up. Okay. Got it. Wow. Dude, that's insane. Oh, that's crazy. Okay, so, okay, so $40,000, I'm just trying to wrap my head around what that must have felt like, right? What were you doing before you actually were wholesaling? So before I was wholesaling, I actually worked at a financial institution, payday loan. I was a program analyst. So I did programming, coding, that was my nine to five, right there. And I admitted corporate America for about eight years up until that point. And I started wholesaling part time, my lunch break and afterward. Okay. Mm. Wow. So are you still doing it during your lunch break? I don't have a lunch break anymore. I work for myself near you all day is your one. It's like the classic. All of that. You want to work for themselves so they have more time, but then you spend more time working. Exactly. You think you're going to have time for you in a sense, and you do, but I'm choosing to allocate my time to grow my own personal wealth and business instead of, you know, on Netflix and chilling. So you're still doing what you want. And I think that's the, yeah, that is the gift that being an entrepreneur gives is we don't have to go to the office at eight o'clock and work till five, we get to. And once you start doing that and you're making a $40,000 check, you're a little bit more motivated to do that. You want to do that versus going spending eight hours in an office to get $200 for the day. Exactly. So the return on investment is huge, right? And I mean, I wouldn't change it for anything, right? I'm grateful for the opportunity that I was given it, you know, with real estate has been life-changing. So I just be able to do what I want to do every single day, I wake up with a passion. That's what I love. Love that. It's easy to be passionate about something when it also bays well, right? Right. Right. Exactly. So what are some of the other aspects though, right? So now you said you had a lunch, but now you don't have a lunch, so you have more freedom, but you have less time. So it's obviously making you very happy, probably making more, but I guess ultimately we all just want control over when we take our lunch and et cetera, right? Is that more what it's like all about? Exactly. Yeah. Just just being able to control what I do with my time and, you know, having the luxury to if I want to take an extended vacation, I don't need to ask my boss. I just have a conversation with myself, you know, make sure I have all my notes to row and then take the time off. Like, just being able to go to where I like to travel to Lake of the Ozarks. I just took my family there for a little over two weeks, but not having that option, you know, at the day job, you got two weeks, three weeks with the PTO, just being able to allocate what I want to do, the time that I want to do it, what I do, what I do. But I enjoy work. Okay. Got you. Yeah. I know about the Lake of the Ozarks. Okay. I grew up in St. Louis. So I know it's an incredible man-made lake and it's pretty, pretty baller. It's almost like being on the ocean with some of the boats that are out there. Oh, yeah. It feels like you are kind of in a huge pool of water and there's a lot of space, but, you know, you still get the dog, you know, spend some time in nature too. I know you've been to probably Branson and sounds like and the terrain. Yeah. I grew up there. Yes, sir. What do you do with this all on your own or do you have partners? So I started the company solo, solo for noor for the first two years, two and a half years. I did this right and got in my own deals and I've built up a team of 12 individuals. You know, I have two, well, 12. Yeah. I have VAs in Central America and the Philippines. I've got staff locally that run my dispositions and acquisitions and then I'm more of a CEO, O type at this point just continuing to scale. Dude, congratulations. I mean, that is a level that few achieve. It's so great to see you do. So what type of deal flow are you doing right now? Right to keep all that staff busy and that's a really good question. A lot of deals, especially in a tertiary market like mine in Kansas. Last year we did 112 transactions. This year we're slated to do around a hundred and ten, 220 and that's the deal flow that I need to be able to cover my overhead, my staff and be able to net it, good return. I'm running at about a 34% profit mark, so it's a pretty healthy business. Dude, I love that you know that number in particular, what are some of the other key numbers in your business that you do know that you could share that might be helpful for somebody starting out like specifically like, oh man, I know we do 2,000 phone calls to get a deal or something like you know, anything like that. Yeah, I know one really good KPI, I think people should track our conversations per day. You know, on the average for us if we're having 20 conversations a day, you know, that equates to between two and three appointments a week, which nets us one contract, one and a half contracts per month. So, I think that's where it starts and just pick it up the phone, having quality conversations with people and putting your name out there, telling people about what you do, ask you for referrals and I think another metric would be how many appointments you're setting throughout the week, month, and then also as you scale, be able to dial in your marketing KPIs really because this is a marketing sales business. You're tracking how much you're spending in marketing, what your cost for lead is a cost for contract really drive change, you know, quarter over quarter. Hey guys, if you know you want to quit your job in the next three months, make sure you're subscribed to this podcast because we've got some incredible frameworks with step by step instruction that you're not going to want to miss. Also, leave us a rating and review to let us know your favorite parts and why you want to get financial freedom. Got it. Wow. So, some of those cost per contract would include obviously all your marketing expenses, your expenses for the 12 individuals that you're paying, right, to handle specific parts of your business. So, if you could zoom back out, like how many deals had you done before you even brought on one person to come help out with a certain part of your business? Oh, for sure. Last year, numbers kind of fuzzy still, but I did around six to seven deals progressively and that was all just a real marketing, driving for dollars, coal, coal, and texting. And then my second year in business, I did around 20 less transactions while still maintaining a full time job. Third year, I got that up to around 38 to 40 transactions. And then the fourth year, that's one of the things really took off. And I invested a lot back into the business to get to 100 and 12. So what was the biggest change you noticed from year two to your last year where you're doing a hundred and twelve delegating more and bringing on a team, right, because where we talk about time for you to be able to put yourself in seats that are most important. Doing somebody come on and as an acquisition manager was critical to my growth and me able to buy back some of that time because when you're out in the streets running appointments, belly to belly, like we are, you really strapped for time. So that that brought me back about five to six hours, you know, a day almost in drive time. Yeah. So what piece of it do you enjoy the most out of the wholesaling process? What's your favorite piece? I still love running acquisitions. That's one of my favorite pieces. My second favorite piece is really pouring into the young guys that put their faith in me to help them grow as salesmen, as individuals in life and seeing their growth and taking a young man that was planning on becoming a firefighter, making 30, 40 grand a year and helping them make over six figures his first year of working with me. So that's given me a lot of satisfaction being a good leader for the people and being that guy that I didn't have when I came up to the right view. Man, Ryan, what a cool scaling story kind of reminds me of yours. It does. Yeah. I mean, there's a lot of similarities, especially in the time what has happened over the course of the years, your first year is this, your second year is this. I mean, even to the point, my favorite piece is acquisitions. It's the one thing that I still do day in and day out. Yeah, day I went on two appointments, got two contracts. It's just, that's the piece and that's the freedom again, kind of going back to having the ability to do what you want. Like I don't like doing dispositions. I don't like doing marketing. I don't like doing any of the things. But if you put me on an appointment, I know that my ability to connect with people and my ability to negotiate are my two strong suits. So I get to put those to work each day. And it's fun. I don't get bored versus doing what I used to do. There's times you'd spend hours doing sales for selling internet and you just get bored with it. I don't feel like I get bored here because I choose to do what I'm doing. Yeah, I like, I like that actually just, again, just choosing what you get to do it and, getting into your strengths is the best thing, what a person could do. Yeah. So you said you started wholesaling and now you've gone on and do some other things like flipping, right? Anything else that you're doing and can you explain why you started adding in flipping to your business? Yeah, I mean, absolutely. I think any, the path of a traditional real estate investor is always, you know, or not, I shouldn't say always, but wholesaling is kind of the gateway drug of upgrades. And then scaling up, you realize that you need more tools in the tool belt to be able to continue to do business. So adding, fixing and flipping, adding creative financing, you know, adding the innovation strategy helps you scale it and to monetize a lead flow that you do have to do more business. So instead of, you know, making low ball cash offers and praying that you do the wholesale deal, you know, you can capture some of those leads that you would throw away. And that's really why I implemented the different strategies is just to continue growing and also noticing a trend within the marketplace as boomers, you know, get older and they are retiring. There's a need to liquidate the assets that they have not only in real estate, but in business. So we're seeing a big need in business selling and whatnot. We have a lot of leads actually coming in, where a homeowner has an underlying commercial property, but they're also interested in selling to business with it. So what kind of business are we talking about? So I'll give you one example. One of my acquisition managers partnered up with me and we found an off-market dry cleaners. So we purchased a dry cleaning company using the same tools that we did, old selling and flipping. You know, direct to seller marketing, have equality conversations and connecting with people, putting it under contract, under seller finance terms, you know, we were able to purchase this dry cleaning with financing in place from the seller. And you know, we've got a profitable business that's going to scale that I'm not an operator. I don't go to the cleaners unless I want to drop off a shirt or two. So got it. There's a 34% profitable, not yet, there was a lot of, so we just acquired that within the last six months, profitability was actually break even where we started. So we've incorporated some marketing techniques, you know, getting a Google business page up, getting a Facebook page up, driving traffic to that, those pages and doing some local marketing to give more business. So our hope is that by the end of this quarter and next quarter, we'll be out of 20%. It sounds like you better than we're leading up on that deal. Yeah, we did. We did super well. And then it's a boring business, right, but boring businesses make money, right? So that's exciting to see how wholesaling could start you on this path, but really expand to a lot of other exciting things, right? So that is a really cool part of your story. Thanks, man. So where are you wanting to go from here? That's a goal or something that you're very excited about, kind of like a next milestone. I think the next milestone for me in my business is, again, just focusing on that time aspect of it. I'm looking at hiring an executive assistant to help me take off the load because I've got a lot of ad and administrative on my plate and delegate that off to be able to buy some time back to go deeper into the business by and commercial real estate. And really just one day, maybe being in that owner's box and having multiple businesses. Until then, putting systems and processes in place, over the next six months, I should have every org chart, SOP, process map dialed in so that one day I can put people to the right seats. That's my goal this year. Right. It's so important as a leader to clarify what people's responsibilities are, how they should do their job, et cetera. So it's great. Yeah. I've definitely been, you know, that with my just the one business I have, but I know that it gives people confidence when they know what expected of them or who to go to for what. So that's very smart of you to do that. Where could people find you on social media other than you dry clean your space book page? I had somebody doing that. Oh, yeah, um, you can find me on Instagram, um, likes to God. Sorry. It was my handle. I'm on Facebook also. And then in my answer, we haven't gotten a lot of late tree. You guys can book a call with me if anybody's interested in connecting with me personally or just reaching out. It can always shoot me a deer. Awesome. Thank you so much, Alex, for your time. Really appreciate it. And I look forward to publishing this should be out next week. Awesome. Hey, appreciate you, David and Ryan. It was a pleasure. Yeah. Thanks for listening to the deal machine real estate investing podcast. Please leave us a review and follow along wherever you're listening to your podcast. Thank you. Bye. [gunshot] [BLANK_AUDIO]
Alex made $40,000 on his first real estate wholesale deal. Wholesaling has enabled him to earn enough money to flip homes and he even recently purchased a laundry business! If you want to learn more about wholesaling, tune into this episode.
Key Talking Points of the Episode
00:00 Introduction
01:10 How did Alex make $40K on his first wholesale deal?
02:32 How did Alex get in touch with the homeowner?
03:29 What is Alex’s background?
04:31 What kind of freedom does real estate create for investors?
06:56 How is Alex’s company structured today?
07:37 What kind of deals does Alex and his team focus on today?
08:23 What are the most important KPIs to track in your real estate business?
09:57 How many deals did it take before Alex made his first hire?
10:43 What was the biggest change Alex made through the years?
11:23 What is Alex’s favorite piece of real estate investing?
13:35 Why did Alex decide to venture into other real estate strategies?
14:56 What other businesses has Alex invested in because of wholesaling?
16:38 What does the future look like for Alex?
17:55 How can you connect with Alex?
Links
Instagram: Alex Peransi
https://www.instagram.com/lexthegodson/
Instagram: David Lecko
https://www.instagram.com/dlecko
Instagram: Ryan Haywood
https://www.instagram.com/heritage_home_investments
Website: Deal Machine
https://www.dealmachine.com/pod
Website: Heritage Home Investments
https://www.heritagehomeinvestments.com/
