Deal Case Study - The Pig House

Speaker 1: [0:01] Welcome to the collecting keys Friday focus.

Mike DeHaan: [0:05] What is going on, guys? In this episode of the collecting keys of Friday focus, we have a very special case study with one of our instant investor members here, Dylan Cook. So if you are new to these, on the occasional Friday Focus, we do a deep dive into a deal from either someone in our community or just an investor who we thought had a great story. And they come on and they tell us a real real estate deal. Kinda like the fluffed up podcast numbers you hear on BiggerPods and other things, but this is what real estate actually looks like. We're a real operator, and we're going to dive in and look at what, you know, what exactly went down here. So, Dylan man, I appreciate you coming on today.

Dylan Koch: [0:43] Thanks for having me.

Mike DeHaan: [0:44] Yeah. Absolutely. So how this works is we have five fixed questions that we go through, and it will give us the full story about this deal that you did. So question number one, what kind of property was this deal? Single family home. Single family home. Simple. I like it. How did you find it?

Dylan Koch: [1:00] It was a direct mail lead. Direct mail lead.

Mike DeHaan: [1:02] Okay. What list was it on?

Dylan Koch: [1:04] It would have been high equity absentee. K. And basically, the seller had not been in the house in years and had squatters inside of it that he didn't wanna take care of.

Mike DeHaan: [1:14] Cool. I mean, that's trademark motivated selling right there. I love it. Cool. Do you remember how many times you'd reached out to this person before they contacted you?

Dylan Koch: [1:23] I think it was our first direct mail piece. Okay. But it took several months of follow-up to actually get them to engage in a conversation that was worth moving forward on.

Mike DeHaan: [1:32] Exactly. All about consistency and follow-up. That's 90% of the business people tend to ignore. Alright. So you already gave some details about the seller, but I guess absentee owner, is this someone that I don't know. Were they like an older person? Are they someone that inherited the property? Like what was it?

Dylan Koch: [1:49] Profile of the seller was he owned it for a long time. He had one of those guys, like like Northern Kentucky, like good old boy, owned like 10 rentals, you never know it if you talk to him.

Mike DeHaan: [1:59] Yeah.

Dylan Koch: [1:59] And eventually he got to the point where he didn't he was kind of a slow moor to be honest. Like he didn't wanna have anything to with house. Didn't upkeep them. These people moved in and he really wanted to get rid of it. He's like, I don't care really how much I make on it. He didn't owe anything on the property. So anything was kind of a win for him at that point.

Mike DeHaan: [2:16] Okay. Perfect. Easy enough. Alright. So what's the story with the deal?

Dylan Koch: [2:21] So because of the squatters, we really couldn't get inside the house. Right? But we kinda use that to our advantage when we are negotiating the house. I bet ARV on this place is probably $101.15, and it's a small town called Covington in Northern Kentucky. We got it contracted for $20,000 Right? We bought it sight unseen. And we filed the eviction to get the squatters out. So we're there on the set out day, right? Because they didn't get out prior to to the eviction. Sheriff shows up, they start moving this guy out of the house. And next thing we know is they're bringing out a large pig out of this house.

Mike DeHaan: [2:58] I was gonna make a really rude comment about the guy's wife, but I don't wanna go down that rabbit hole.

Dylan Koch: [3:02] Yeah. No. No. Just a legit, like, farm pig that rocks out of this house. And the sheriff comes out and is basically like, have you been in here? And I'm like, no. Why? He's like, we need to call like animal control. And so literally, they they called like this, I don't know who it was, but someone like animal control people come up, they get this pig. This pig is so fat, Mike. It's like over 400 pounds, walking up this ramp, it bends the ramp that's walking up to get into this truck.

Mike DeHaan: [3:27] Oh my god.

Dylan Koch: [3:28] So eventually, I get into the house and this guy was living with like this pig to shit in the living room. Oh my god. Like there was almost two inches of shit. Or I should say poop. I'm sorry.

Mike DeHaan: [3:38] You can swear in here. It's fine.

Dylan Koch: [3:39] Yeah. Like in this living room. So this was near the beginning of our investing journey. So we're like we this was the first eye opener. Like I can't believe people actually live this way. Right? And but I mean to draw to conclusion to that, we eventually just sold it to another investor for like a $10,000 profit. Nice. You know, so

Mike DeHaan: [3:58] There you go.

Dylan Koch: [3:59] We didn't have to deal with the cleanup or anything like that. We were just responsible for basically getting the squatter out of the property.

Mike DeHaan: [4:04] Yeah. I mean, you can make good money doing exactly that though. Right? So he literally living in the house with the pig. Right. When is it? Right. What was this tenant? I mean, I'm pretty

Dylan Koch: [4:17] sure there were drugs involved, man.

Mike DeHaan: [4:18] It has to be.

Dylan Koch: [4:19] Yeah. It very much he obviously didn't work. Didn't pay rent, just squatted in the house. And I don't even know how he got the pig. I don't know the backstory there. But it was a true introduction to off market real estate.

Mike DeHaan: [4:31] Yeah. I mean and the funny thing is is you do this business, even for not that long, you'll start to see stuff like that. Right? I mean, it's inevitable. It's I mean, if you own rental properties too. I'm sure you've had this experience where you go in and you walk into like a rental property and you're like, your tenants, the hell is wrong with you? Like, this is my property and you live like this?

Dylan Koch: [4:50] Yeah. Right. Yeah. I mean, the longer you're in this, I keep telling myself, like, I'm not gonna be surprised by anything, but then something always comes up that's like, welp, haven't seen that before.

Mike DeHaan: [4:58] Yeah. For sure. It's funny, I've been through so many houses like that, and for some reason, this is the one that sticks out to me. It's not nearly as severe as that. I've in houses that are kinda similar to that. But I walked this house, and the seller told us that the tenants were out of town and were gonna be out of town for two weeks, and they had left the day before. And he let us know, he's like, just so you know, that we have to gonna have a slightly longer closing so they can get back and clean up their stuff because you're gonna have time for two weeks. We walked into the house. And their kitchen, they had an entire day's worth of dishes that were just sitting uncleaned, just all over the counter. And the thing that stuck with me, I don't know why this stuck with me so much, there was two cookie sheets. One of them that had chicken nuggets, the other one that had broccoli, that they had just set up on the counter and just evaporated. Like they had just left with like open food that hadn't even been eaten. Just for two weeks. And I was like,

Dylan Koch: [5:56] Disgusting. Was

Mike DeHaan: [5:57] Yeah.

Dylan Koch: [5:57] But and you did and you wonder like, when you see these people out on the street at your grocery store, it makes you wonder about people just in general. It makes you wonder about the general population at large when you see some of this stuff.

Mike DeHaan: [6:06] Dude, it's it's outrageous. So awesome. So our last result is our last question is typically the end result, but it sounds like you sold this one for $10,000. Did you like put it on the market or did you just like find someone off market?

Dylan Koch: [6:17] No. It was another investor that was interested, but he I'd categorize him more seasoned. K. He also didn't wanna deal with the squatter or the evictions, but he was more than happy to take on the rehab. He had his own rehab crew, etcetera. And I don't know what he ended up making, but I'm pretty sure it was a decent spread.

Mike DeHaan: [6:31] Yeah. I'm sure he did pretty well, especially with that much upside. I mean, even if the house is in the worst possible condition, you can squeeze something out of that.

Dylan Koch: [6:38] Yeah. Know it was like 800 square foot house. Right? So it's not like it's gonna be a whole major re even a major remodel's not as expensive as it could be.

Mike DeHaan: [6:45] Yeah. Do you think that if I guess, said that was one of your early deals. Would you approach it differently now as a more seasoned investor?

Dylan Koch: [6:52] Good question. Right now, I would have had the confidence to probably flip it ourselves.

Mike DeHaan: [6:56] Yeah.

Dylan Koch: [6:57] Right? I didn't have the the team of people or subs that I could call on now that I did then. Or I guess capital on the account. So a 10,000 check at that point in time was

Mike DeHaan: [7:06] That's huge.

Dylan Koch: [7:06] Yeah. It was big. It was more of a proof of concept too.

Mike DeHaan: [7:10] Absolutely. I love it. Yeah. I mean, thinking if I was in a situation now, I probably would just buy it and then list it on the market for like 50 or 60 as like, you know, for a MLS flipper to come in like way overpay for it because they're desperate. They don't have any options.

Dylan Koch: [7:24] Could've done

Mike DeHaan: [7:24] that too.

Dylan Koch: [7:24] Yeah. Yeah. Definitely a good option. Awesome.

Mike DeHaan: [7:27] Cool. Well, Dylan, man, I appreciate you sharing your story today. Working people reach out to you or follow you if you'd them to do so.

Dylan Koch: [7:33] Instagram is right at this place. Just type in my name, Twitter, Facebook. I'm on all social media, and you should be able to find me.

Mike DeHaan: [7:39] Cool. And that's Dylan k o c h. Got it right this time. But awesome, guys. We'll go and give Dylan a follow. He is doing some great stuff, and he is a core member of our Instant Investor Mastermind program. So you should hit him up, and he will tell you how great we are, and then maybe you can join in as well. So anyways, guys, thanks for listening. If you have a story of your own that you'd like to share, hit me up on Instagram at Mike underscore Invest, and maybe we can have you come on and do a deal case study. And besides that, we appreciate you all. We'll talk to you all next week.

Speaker 1: [8:08] Thanks for listening to this collecting keys Friday focus. Be sure to subscribe wherever you listen to your podcasts.