It's Raining Contracts

Mike DeHaan: [0:00] Hey guys, Mike Tahan here. And before the show, I just wanted to take a moment to talk about our most recent partner, Ballpoint Marketing. Direct mail is a common way for people to start marketing for off market deals. But standing out from all the other investors out there is never easy. That's where ballpoint marketing comes in. Ballpoint marketing allows you to send actual pen written letters to your marketing list. They legit have warehouses full of robots using ballpoint pens to write your letters. This comes along with all the smudges and pressure points of a handwritten letter, which gives the same effect as if you had written them yourself at your kitchen table. If you go to ballpointmarketing.com, you can use our code MD5 and you will get 5% off your next order. 5% might not sound like a lot, but you're sending thousand dollars of letters like you need to be doing to get deals that will add up very quickly. For example, you're sending $5,000 of mailers next month, it's gonna be $250 in savings. Anyways, go to ballpointmarketing.com and use our code MD five. That's M like Mike, D like Dahan and the number five for 5% off your next order. Thanks, and enjoy the show.

Speaker 2: [1:00] Welcome to the Collecting Keys real estate investing podcast with your host, Mike DeHaan and Dan Austin. From wins, losses, horror stories, and tactics for optimizing your business, Mike and Dan take a real uncensored deep dive into the ins and outs of running a full time real estate investment and wholesaling business.

Mike DeHaan: [1:23] What's going on, everybody? Welcome to episode 20 of the collecting keys real estate investing podcast. First off, I will say that I can't believe we've already done 20 of these. Maybe doing four of them a month. Is that like what? Five months?

Dan Austin: [1:36] I was just gonna say that twenty twenty is like a round number and it's kind of high. Was thinking the exact same thing. Was like, wow, we stuck with something for twenty weeks.

Mike DeHaan: [1:44] I know. Whenever we were so talked about starting this, everyone's like, don't even bother telling anyone about it until you've done 10 of them because, you know, you're probably not gonna do any more than that. And sure enough, here we were in twenty, and I made my first official social media post from, like, my personal thing promoting this Oh,

Dan Austin: [2:00] there you

Mike DeHaan: [2:00] go. Today. So, you know, I'm like I'm like, I feel like we got a groove now. We're gonna we're gonna keep it going for a little bit. So Yeah. I felt confident throwing that out there. And actually got, like, some decent feedback from people that were, like, didn't realize that we had this. And we got a little subscriber. Well, just can't see subscriptions, which is silly. I don't know why podcast analytics are terrible. If anyone's like a podcast wizard and knows how to track analytics, I'm a data junkie, and I'd love to chat with you. We can track downloads, which I don't really think is a valuable metric because, honestly, who downloads a podcast if you're not going on an airplane or something? I do. Do do you really? Oh, that's

Dan Austin: [2:39] I don't think so. It just auto downloads for me. Yeah. I'm always prepared. You never know when you're in a blackout spot.

Mike DeHaan: [2:45] I don't think I've ever downloaded a podcast, so I'm not going out of service somewhere.

Dan Austin: [2:49] Yeah. It's a super bad practice because every once in a while, have to, like, delete, like, a 100 gigabytes worth of voice data, which is a lot.

Mike DeHaan: [2:56] They're not small, but I know but it's not it's not like a true count of listenership, but I don't know. That's, like, the only thing that you can track, I guess, across everything, which just seems really, really odd to me.

Dan Austin: [3:06] What do you know how they this is a stupid story, but how they track how much people watch on cable TV. How do they do that? I don't know. They have like in some areas of the country, they have like these black boxes people have in their house. They give them like the news or whoever.

Mike DeHaan: [3:22] Yeah. I've actually heard this before. Don't they actually pay them to? I don't know if they pay them. Like for the data. Yeah. Maybe they do.

Dan Austin: [3:28] But then they use that number of those people, which is a very small number compared to the 300 plus million people that live in America. It's like maybe 3,000 people. And then they estimate viewership for the entire country based on that. It's kind of a silly thing.

Mike DeHaan: [3:40] Wasn't But that just like most stats, though? Like, when any the media does anything like that. Right. Know, they'll be like, oh, the Gallup poll, you know, Donald Trump is 100% gonna win the election, and they interviewed 1,000 people in rural Missouri. Right. You know? Yeah. Exactly. It's like, yeah,

Dan Austin: [3:57] it's not all the people with Trump hats on.

Mike DeHaan: [3:59] Yeah. Exactly. At a rally. Yeah. And then they're like, this is absolutely the blanket statement we're gonna make based off that.

Dan Austin: [4:06] God. So

Mike DeHaan: [4:07] I don't that's funny. But yeah. So made that and got some good feedback. It was good. And also too, I felt this was a fitting number because we have had our largest week that we've ever had in the business. I mean, as of right now, officially sign around me assuming that you get the the little pack of them. Are those officially signed? And then we have a hard, hard verbal.

Dan Austin: [4:29] Yeah. They're they're signed. Listing agreements are out to them. Listing nice.

Mike DeHaan: [4:33] So that's officially 11 signed contracts in was it Thursday today? So we're back to last Monday. Was that, like, eleven days? So it's a contract today for eleven days.

Dan Austin: [4:44] Yeah. That's really good. It's been crazy busy too.

Mike DeHaan: [4:47] Yeah. I know that the guys have been absolute champions, taking everything in stride. They were working till, like, 9PM pretty much every day last week, and then have been running all over this week, just getting stuff verified and and working with sellers and getting processes going. And, yeah, it's been crazy. Some of the contracts we got their listings, so they're a little bit different from, you know, like our wholesale stuff, there's still revenue. And we got one that we're doing what's called a novation agreement, where basically we're partnering with the seller to flip the house. Remember when

Dan Austin: [5:16] we try to do novation agreements? We didn't call them novation agreements. When we

Mike DeHaan: [5:20] first started

Dan Austin: [5:21] and we couldn't do it.

Mike DeHaan: [5:22] Yeah. Well well, it's it's funny because I remember I remember the first time we pitched that to the sellers. It was that huge house with that lawyer that was an absolute

Dan Austin: [5:31] dickhead. Oh, that guy.

Mike DeHaan: [5:32] Yes. The the divorcee, he was such an asshole. He was. And the crazy thing about that house too is that house was awful. They listed it for way too high of a price and ended up selling it to some dentist who apparently just wanted to burn $600,000. It was so bad. But we, like, pitched that to them. And I remember we came up there. We're like, well, we know they're not gonna accept their offer. What if we partnered to flip with them? And we just like, we're on the phone, like trying to pitch it and the guy was like, you're idiot. He's like, I'm absolutely not doing that.

Dan Austin: [6:05] But that house did need a lot of work though. It doesn't need like a $100,000 of work.

Mike DeHaan: [6:09] It did. Yeah. And apparently, there is a term for it. It's called an ovation agreement. That's with an n, which basically means that you partner with them and it outlines the conditions of what that agreement looks like and how everything's split, and it becomes a recorded document on title. So you it's enforceable at the end of the day. And, yeah, it's surprisingly simpler than you'd think. And for something that doesn't really seem to be talked about a huge amount, I think it's a really, really valuable tool. And on this deal, as I was sort of closing the deal with the guy, he sort of started to spill these problems that our sales guys actually hadn't figured out that he was dealing with. And ultimately came down to the arrangement that we have with him, we're going to be making a little bit less money than we would have if he had accepted our cash offer, which he actually did kind of at the end of the call that I had with him. But he's gonna be making about $14,000 more Yep. Because you're not gonna be paying a lender. So for us, it's worthwhile to do that. A, because I'd rather just do he's kind of on hard times to make some money, he seems a decent guy. But also too, we don't have to go get a loan.

Mike DeHaan: [7:13] We don't have to go through the paperwork We

Dan Austin: [7:15] can start tomorrow if we want once everything's signed. Right? Exactly. Yeah. As soon as we

Mike DeHaan: [7:19] have clear title, we can start. We don't have to go through like a whole closing process for the lender and sign a bunch of documents. Like literally, it's a two page agreement. And it'll be pretty cool to see how that goes.

Dan Austin: [7:28] So yeah, worked out timing wise was perfect to just the fact because we're finishing up our other flip. And then we're going to start, we're gonna have like a little about a week off for our contractor to start the other flip. But then the seller is in the ICU from what was the story on this guy? He got beat up.

Mike DeHaan: [7:44] Yes. He was a cop, and he was out on duty, he got into a confrontation, and he's in the hospital. How did that

Dan Austin: [7:51] now make the news? I feel like I would have known that happened.

Mike DeHaan: [7:54] Who knows, man? I mean, I'm not going to say anything about that realm with these Even talking about that puts you, you know, someone's going to be pissed off that we didn't Yeah. Do it the right

Dan Austin: [8:05] Okay. So yeah, but that was honestly, it was good timing to be able to do that and then be able to just slide right into that right away because of the Novation Agreed, just the nature of that process, we're able to, we don't have to wait for title and closing all that crap, we can just kind of move pretty quick.

Mike DeHaan: [8:18] Exactly. Yeah. And this would be a really quick deal anyway, mostly just flooring, paint and stuff, and then should be able to, you know, we're buying it. My guess our agreement with him is $400,000 and down is his. And then everything above that is ours. We're expecting to be able to sell for $500. So assuming it's all costs are down, we should make about 35 to 40, I think on it. If all goes as planned and you don't have to necessarily come, you know, we have to come out of pocket for the rehab, but we don't have to come out a huge amount for a down payment or anything like that.

Dan Austin: [8:46] Yeah, no, it should be pretty quick and then we can slide right over to our lake cabins. Hopefully I

Mike DeHaan: [8:50] know Exactly. And that was another one I'm excited about. Everyone always asks with this kind of marketing. They're like, you must only get crappy sort of residential properties or things like that. But every now and then, you know, we get unique stuff. I mean, we bought an eight unit apartment complex off of our direct mail campaigns. We've done decent plots of land that we've made pretty good money off of. We've gotten leads on commercial stuff. We've never closed any of them. But, I mean, people call off those, like RV parks, mobile home parks, all from the same campaigns, not even necessarily targeting those. And this past week, we got a two pack of these. They're basically like tiny homes on the lake. And it's funny at first glance, you kinda go on, like, what is this? Like, why would anyone buy this? But then turns out there's a bunch of them just like this around the lake. Yep. And because the square footage is so small, it's not gonna take a huge amount to make them dialed in. Yeah. And we have a fat spread on this deal.

Dan Austin: [9:51] Well, the funny thing is is it's just, like, looking at the photos, was like, god, these things look like dog shit. Like, I was like, what's the value here? But then when you identify kind of where they're at and the nature of that, it's like, oh, okay. So, like, yeah, they're just like lake cabins. People pay stupid money

Mike DeHaan: [10:04] for those. Yeah, exactly. It's it's a lake cabin. It's not directly on the water. It's across the street, but they have deeded water access at a private dock. Like one of them is 340 square feet, the other one's 670 square feet, which actually isn't too small. I mean, there's houses in Spokane that are that size. Right. And in fact, we own a couple of them now. We do. But every day, bought them land the seller finance in December. And, yeah, they have their own their own parcels, like, they're on their own utilities. Should be pretty sweet. And I think that for whether someone wants to have them as a vacation cabin for their family or as an Airbnb, they have a lot of value upside. So Yep. But it's kind of funny because this is the thing that always irritates me about buyers. We get people all the time that are like, we would love if you ever find, like, a lake property. You know, let us know. So we get these ones. You float it out to all of our buyers. Like, can it make some easy money? Everyone's like, oh, no. I only want them if they're on the water. It's like, yeah. So does everyone else. Screw you. You don't want a lake property that bad. Yeah.

Dan Austin: [11:02] Well, if you want a lake property, then you're gonna pay double or triple that. And you're gonna say, oh, I don't I don't play in that price range.

Mike DeHaan: [11:07] You're so right. Honestly. Yeah. Exactly. If these ones are on the water, instead of being $300 for the two of them, maybe 700 for the two of them. Right. Exactly. Pay what you can get, especially these days. Yep.

Dan Austin: [11:18] Oh, 100%. Mean, there's a lot of opportunities that we get that at first glance, like, oh, but some of those ones are the best opportunities we have. Cause if you just take a little deeper dive and you actually look at it, you're like, okay, yeah, we can do something here and just get

Mike DeHaan: [11:30] a little creative. Yeah, exactly. Yeah. That's kind of been a whole thing recently has been being creative to help solve people's problems as we're going through some of these deals. Because as the market does get tight, and people become more and more aware of how things have grown, there's just less opportunity to find a massive discount because the buyer pool is so big. Right? People know that. So a lot of the stuff we've been doing recently has been seller financing deals or like things like this novation agreement, where it kind of ends up being better all around. You know, the guy's making more money. Just changing that mindset of you always need to go for a cash purchase, I think is gonna be it's me. It's been a key for us this past week, we have a handful that have been outside of that. I think other people need to start educating themselves and learning what those negotiations can look like.

Dan Austin: [12:23] Yeah. I mean, like, we fell in that trap when we were first new. We're like, but we pay cash, and we can close in two weeks. It's like, honestly, for most our sellers, like, that's rarely the biggest issue they have. Right?

Mike DeHaan: [12:34] Yeah, exactly. The biggest issue right now, I mean, they don't want to close in two weeks. You tell them you're close in two weeks, they're horrified. They're like, gonna be homeless. Where am I gonna go?

Dan Austin: [12:43] Yep. Exactly. Yeah. And so and then again, like you're saying, like, cash may not be the best for either of us. They may want a novation agreement because it helps them out or or seller financing, or any of these things, which we've known about. But then it's like, you've got to really understand what their problem is so that you can pitch it to them in a way that they can hear it.

Mike DeHaan: [13:01] Yeah, exactly. And and it has to be the right kind of seller too. I mean, it has to be a seller that was educated and that you don't mind being tied to a little bit. If it's like a crazy crackhead house, don't try to pitch them on seller financing. You know, you're gonna regret that decision. Seriously. So Yeah. Yeah. The whole situation has been very interesting as we've been going through that. And we've completely taken like the we close fast out of our marketing. And we've been more pushing like we have a flexible closing. Right. Because that's been the other thing that people have been looking for. So we have a guy right now that we've been chatting with, and we're still negotiating this. We might actually do it. We're basically we're gonna agree on a price. And then out of his proceeds, he's going to front load us with three years worth of rent.

Dan Austin: [13:48] I thought it was only gonna be fifteen months. Did it move up?

Mike DeHaan: [13:51] It did. He decided that that was too short. He's an older guy, and now he wants three years, but he's adamant that he wants to pay us rent. He does not wanna live for free. And he's like, just take it out of my proceeds. So, like, very realistically, what this could look like is we buy the house for a discounted price. And then we basically receive like a $60,000 check back at closing for the rent for the next number of years. And then we can do a cash out refinance, we can do whatever we want, he's still going to be under lease. Yep. And we can just let him do his thing. And we now have a free house that has an equity position that doesn't cost us anything because we already collect all the rent. We just set that aside in a little reserve account and just have it pay for itself.

Dan Austin: [14:34] Yeah. That honestly, I'm very impressed with the team of pulling that together because like that Yeah. I don't know if I've heard anybody doing anything like that.

Mike DeHaan: [14:41] Well, here's the crazy thing, though. I mean, I'm glad you give credit to the team. This was this this dude's idea.

Dan Austin: [14:46] Was it really?

Mike DeHaan: [14:48] Yeah. Like, as we were getting into the weeds of doing, like, a subject to or, like, a rap or something like that, he basically sent in this long text message outlining kinda what he wanted. And at first, are reading it, we're like, so does he, like, wanna pay rent for, like, a year? Like, I don't understand what he's saying because it didn't really make any sense, you know, and then got him on the phone, and that's exactly what he's thinking. It's, like, his pitch to us about how to do the deal. But it came around because we built the trust. We gave him different options. We found out what his concerns were, what he wanted to do. And that's where we're at right now. You know, like I said, it hasn't officially been assigned around yet, but it should be coming around, I think, tomorrow is when James' scheduled signing is. So we'll see what that looks like.

Dan Austin: [15:32] That'll be cool. I'm excited. It's just very fascinating, the setup. So my understanding is this guy basically just wants somewhere to live where he and he's gonna, like, die or Yeah.

Mike DeHaan: [15:41] He's like an old guy and he's like, I'm too old to move. He's like, I'm tired of paying bills. He's like, I just wanna cash out and have some money to enjoy the rest of my life

Dan Austin: [15:50] Mhmm.

Mike DeHaan: [15:50] And not have to have, like, any liability with the house. And Jamal said, but he but he's like, but I'm not a bum. I don't wanna live for free.

Dan Austin: [15:57] Well, and it's super smart because a lot of people get in that position where they go and do like a reverse mortgage or something like that. Mhmm. Yeah. So they get like a monthly little bit of money. And then when they die, the people laugh to the bank the whole way. Right? Yeah. He's like, no, I know I have value here. I have money here. I wanna, like you said, be able to live essentially for free by front loading all that cost for himself and then have the money now instead of like just trickling out.

Mike DeHaan: [16:20] Exactly. You know, and even doing like a cash out refinance or selling it and getting a rental or something like that, he's still gonna have the bill that he has to pay every month to live. And he's like, I would rather just not have that.

Dan Austin: [16:32] Just not have the bill. I'm

Mike DeHaan: [16:33] like, okay.

Dan Austin: [16:34] I love prepaid rent. We get that sometimes from some of our tenants. I love it.

Mike DeHaan: [16:38] Yeah. Yeah. It's always like a a weird one, you know, because I always worry about, like, if there are problems and you gotta kick somebody out, then you have to prorate it back and all this sort of weird stuff.

Dan Austin: [16:48] I've honestly more so worry about if I forget to go back and look and be like, when was the last time they paid and when should I ask them for money? You know, we have that one tenant. That's how it is. Right? It's just like, oh, shit. I haven't paid in a while. You know? Like, should I is that prepaid? Yeah.

Mike DeHaan: [17:03] Yeah. Right. Yeah. You're yeah. You're completely right. Well, I mean, that's why we have Judd doing our our management now. Exactly. Especially when you get busy, it's it's easy enough for that to happen.

Dan Austin: [17:13] So easy.

Mike DeHaan: [17:13] Even when you have it automated in some sort of payment system though, it's still easy enough to not, like, realize it didn't come in for some reason or another. And it just, like, leads the problems. And then even though that'll enforce late fees and things like that, it's not gonna post notice for you.

Dan Austin: [17:27] No. No. It's not. Especially if you're in Washington, you had all these stupid rules. But, yeah, like, I was gonna mention just like in the one house that we've got, like, 11 I think it's, like, $11,000, like, hanging out there, the one that we rent to the state because they're just the minutiae is so thick with them to try to get it paid. Know what I mean? It's not crippling, but it's just, like, annoying.

Mike DeHaan: [17:46] So I know I know you haven't told Judd to dive into that one yet because I chatted with him about that, and he was kind of oblivious. But you should because with my one that I rent to the state, he's getting them all set up on Hemlane, like

Dan Austin: [17:56] Oh, they're actually gonna do that.

Mike DeHaan: [17:57] Yeah. They're doing all of it.

Dan Austin: [17:59] Oh, nice. So you

Mike DeHaan: [18:00] should you should send him hunting on that.

Dan Austin: [18:02] He'll figure it out. Yeah. I might just send him on that. I've been I mean, I've communicate with the guy every day. Right? It's just a matter of like, well, what about this one? What about that one? Oh my god. God.

Mike DeHaan: [18:10] Yeah. So Yeah. Send somebody in there that has blinders on and just has the goal of collecting money

Dan Austin: [18:17] and judg will figure Yeah. Alright, Judg, you're up.

Mike DeHaan: [18:21] Here you go. That is for the was it the Coza property or something. I don't know. Probably shouldn't say address on here. Who cares? I don't know. There's a lot of houses in Spokane. You'll figure it out.

Dan Austin: [18:32] Yeah. That's not the only one that's been fun. I think I need some this. Maybe I'll use this as therapy to talk about our insurance claim. This has been kind of fun.

Mike DeHaan: [18:40] This is good because I actually haven't heard this yet. I've seen your text kind of in between me driving and doing stuff.

Dan Austin: [18:45] Here's what I if there's a course out there, you know, DM me, let me know. But if not, we should create this course of like what to say to insurance adjusters in your first phone call so that you get what you need. Because if you say things wrong or like nuance, there, I know that there's

Mike DeHaan: [19:00] a secret.

Dan Austin: [19:01] There's like a secret way to talk to insurance agents. Cause I talked to enough people and they're like, say this, you know what I mean? And like, that's what it is. And like on this one, this is turning into this whole thing where just to recap, obviously the oil leak in the basement. So they had to cut drywall out, rip out flooring, rip out the toilet. And I mean, it got into the bathroom, the shower, they're ripping out all of our new renovation shit, which is fine. Whatever insurance pays for it, that's going to be fine. It's going to take a long time because they're not incentivized to move fast. Right. We don't even have a budget for putting it back together because what they're doing is essentially they called in like some mitigation company. And then when they're done with it, the insurance company is gonna write us a check and say, okay, go figure out how to put it all back together. And it's like, okay, that's kind of a problem. But the furnace. So initially I was like, oh yeah, you know, the furnace is broken. It failed. So So you guys need to replace it too. And they're like, Oh, we don't replace appliances. I'm like, what? Okay. That's fine. Well, okay.

Mike DeHaan: [19:55] Is they consider that an appliance?

Dan Austin: [19:57] Yeah, apparently. So really then what we actually found out was the furnace itself didn't break. There was just a line that fed oil to the furnace that leaked to like a lot. So basically, they tell us like, well, we have to move the furnace to get oil from underneath it. Right? And I was like, okay. And so they called the furnace company. They're like, yeah, if we move that, we're not putting it back in because there's no way we can fix it. Like you can't move it and put it back. It's so old. They're just like, we can't guarantee it's going to work. So the furnace guy's like, basically like, no. And so I called the insurance company. They're like, well, it's already broken. So who cares? And I'm like, well, actually it's not broken and we need it to work, but they're just continuously like, well, maybe we just won't move the furnace now. And I'm like, no, you said you need to, if there's oil under there, you know, cause like they have to actually, the upstairs doesn't have oil in it, but they actually have

Mike DeHaan: [20:48] to like do mitigation up

Dan Austin: [20:49] there because it's like permeated through the walls. Can smell, I guess it's bad. Again, I haven't been there yet. And so it's just like every turn I get around, I'm like, Oh, I could see light at the end of the tunnel. And it's like, No, sorry, bud. We're going to try to find a way to not pay for this all.

Mike DeHaan: [21:03] It's just

Dan Austin: [21:04] like, it.

Mike DeHaan: [21:05] Yeah. That's tough. I mean, it's almost like when you're getting a home loan, From like a Fannie Freddie person and you got to like, give them enough, but you

Mike DeHaan: [21:13] don't want to like overshare. Exactly.

Mike DeHaan: [21:15] You know, like, like you don't want to tell them about debts that you have. So they're like, one, should show up on like a credit report. Yeah. Or like, you know, side income that you make. Because like all of sudden they're going to want all this information. Yes. It's like give them the bare minimum that you need to qualify for what you're trying to do. Yeah. There's nothing

Dan Austin: [21:30] with bank accounts. I don't give lenders because I'm like, I don't wanna explain why there's big deposits or not.

Mike DeHaan: [21:36] Exactly. Right? Honestly, you know, and I bet with an insurance exactly the same. You have to tell them just enough to get them to do what you need to do, and you don't wanna overshare stuff. Yeah. But so are we gonna have to replace, like, all the furniture and everything in that place?

Dan Austin: [21:50] I don't know yet. We'll find out.

Mike DeHaan: [21:52] I mean, because if it's seeping up into the upstairs, there's no way it's not getting to the couch.

Dan Austin: [21:55] Yeah. I I don't know. More to come? Yeah. The story will continue. You'll have an update next week probably. Yeah. I'll probably try to shoot up there this weekend and actually take a look at it, you know, and see what's going on.

Mike DeHaan: [22:07] Gonna walk in, you're gonna find, like, a whole crew of insurance people just like squatting there. It's all rude. Like, this is a nice house. We're just gonna live here and see how long this idiot takes to figure

Dan Austin: [22:16] it out. The thing is, is we have the digital lock system so I can see when they come and go. And they're not like working super hard. Right. It's just like random days of the week at random times, the door gets unlocked. And I'm like,

Mike DeHaan: [22:28] of course,

Dan Austin: [22:29] know, and meanwhile, insurance has already said, we're not paying for your rent that you're missing out on. And so it's like, what the hell? So I do want it to get done on a somewhat of a schedule. If they're going to pay us a fixed cost of rent, I wouldn't be like, you know what, as long as we're cashflowing, let's do it right.

Mike DeHaan: [22:43] Yeah. Right. Yeah, for sure. Yeah. This might be the time we just turn that one into like a long term rental.

Dan Austin: [22:50] Maybe honestly we could cashflow with it as a long term rental.

Mike DeHaan: [22:54] Yeah, exactly. We already have our thirty year locked in. Yeah. Just let it slip that ride kind of a pain in the ass anyway. Interesting. Well, always something new people. Yeah. People say they want to own rental properties. This is the stuff that happens sometimes. Yeah.

Dan Austin: [23:10] You know, it's part of the of

Mike DeHaan: [23:11] the business. Right? Exactly. But this is the benefit of buying at a discount is then you at least have some room to move on this. I guess that's what we don't anymore. So it's so much money. Theoretically,

Dan Austin: [23:24] it's still a good deal. We still got equity in it. Right? You

Mike DeHaan: [23:26] know? Yeah. That's what it is. Yeah. And and stuff grows. I mean, looking at properties that I've sold in the past, especially over the past couple of years, I mean, look at, like, the visor things now, I'm like, damn, I should have definitely kept all those. I mean, I think the stuff that you and I have sold and then like, you know, the few flips that I did, man, if I'd kept all those, I would have multi 7 figures more on my net worth at this point.

Dan Austin: [23:51] Yes. Don't buy to what do they say? Don't wait to buy. Buy and wait. Buy and wait.

Mike DeHaan: [23:56] Yeah, exactly. And it's a fine balance because especially back when the stuff that I sold in like 2020, I needed that to kick start this business. I didn't have any money and that's led to a lot more opportunity. Even then, it's always like, what if I had just lived a little bit leaner and like not needed that safety cushion, which I didn't actually end up needing. Right. And just push it to the edge and I could have still figured this out and then also had that house. Yep. But

Dan Austin: [24:21] Yeah. You should have just lived homeless for that period of time and you're doing really well.

Mike DeHaan: [24:25] Yeah. Right. I have a way better story too. About, you

Dan Austin: [24:28] know Homeless to millionaire? Yeah. You'd in

Mike DeHaan: [24:30] bigger bigger pockets by now about how I went and lived in a van down by the river. Although that's a cool thing to do now.

Dan Austin: [24:35] It's not

Mike DeHaan: [24:36] a it's not a joke anymore.

Dan Austin: [24:37] You would have been before the times though.

Mike DeHaan: [24:40] Kinda. Yeah. A little bit. I thought that really took off last year when everyone was started traveling from the pandemic. Yeah. That's just like a thing. And there's the TikTok and Instagram influencers now who they have I'm sure you've seen those. This is like, this is how I live in my camper van, and they have, like, granite countertops in there, like stainless steel appliances. It's like, I feel like that's not when that whole trend started and people were dirtbagging it, that was not No. What it was.

Dan Austin: [25:09] They were dropping, like, $85,000 to outfit this van, that you still live in a van that's still cramped and tight, and you still have shit in a bucket.

Mike DeHaan: [25:18] Yeah. Right? I mean, I'm sure they don't, dude. I'm sure there's ones with basic plumbing some

Dan Austin: [25:22] kind Yeah. Yeah. You're probably right. But, I mean, you could literally just go and buy, like, one of those huge tour buses for the same price.

Mike DeHaan: [25:29] Yeah. Right? No kidding. That's bit better. Does. One of those ones that you see, like, old people, you know, are traveling around on in in random places.

Dan Austin: [25:38] That's what my daughter's trying give me pie. She wants me to buy a motor house, she said. A motor house? Where are we gonna go?

Mike DeHaan: [25:46] I mean, I you can see why she says that based off the neighborhood that we live in. Every third one has a motor home. They intentionally leave an extended side yard on every house here. She can park a camper back.

Dan Austin: [25:57] I know. I know. She feels like she's living without because we don't have a motor house.

Mike DeHaan: [26:01] You should stop abusing your daughter and and let her live on a normal five mile childhood. But Problem is

Dan Austin: [26:08] we use like once a year.

Mike DeHaan: [26:10] I know. Right? No kidding.

Dan Austin: [26:11] But that's alright. I do like the life hack though of putting in an LLC and then renting it out. And then you can depreciate it because it's a business. Right? Then all the time, there is a lot of tax savings associated with that.

Mike DeHaan: [26:21] Yes. Like what tax savings? Not it's not gonna directly apply to, your other income, though.

Dan Austin: [26:27] Well, yeah. Because you're depreciating an asset. Right? And so if you can write off your other passive or active income with it, just like you can with real estate depreciation. Right?

Mike DeHaan: [26:35] Does it work on, like, a camper?

Dan Austin: [26:37] Yeah. There's guys that go abundance there. That's what they're doing. So they use it. Like the problem is it just doesn't fit for me right now, but like they actually want a camper to use. So they're going to buy it anyways. Right. So it's not like they're like making this or a profit on this, but then they lease it out to, like, make it a business. And so they show income and then they can use that tax, the write off of the depreciation probably over, like, five years. So you're depreciating a 100,000 asset over five years. That's $20,000 in tax depreciation.

Mike DeHaan: [27:03] I wonder what, like, the net this probably this probably sounds so stupid. I wonder if there's, like, a number where you reach your, like, it's a strategic move to just start buying campers for depreciation, and you just, like, park them on some acreage somewhere to bring down your tax burden.

Dan Austin: [27:19] Yeah. Like, don't know.

Mike DeHaan: [27:21] Yeah. I I

Dan Austin: [27:22] don't know.

Mike DeHaan: [27:23] I mean, guys do that with jets. With my GoPod guy came and talked to us. He works in a jet leasing company. And, you know, one of the guys asked, like, who are all these people that are they ask you if they own the jets at least. And he's like, oh, no. Mega millionaires and billionaires, they buy the jets, and they basically give them to us to lease out. And he said a lot of them don't even use these jets. They purely use them as, a tax play. And then just with the revenue that it generates, it kinda, like, covers the cost of the jet. So they basically net zero on the jet, but it's a positive because of the tax benefits. Because when you're depreciating, like, a $25,000,000 jet Right. There's a lot of depreciation you can take there if you're a extremely wealthy person. Well, that's the

Dan Austin: [28:03] next way. Let's start syndicating jets.

Mike DeHaan: [28:05] Yeah. Yeah. So I mean, that isn't that technically like what NetJET is? Is your, like, it's like a time share for a jet?

Dan Austin: [28:12] Yeah. I guess you're right. Oh, man. So

Mike DeHaan: [28:14] Yeah. That can be our our new course. It's perfect segue for our instant investor program. We will teach you how to buy private jets to reduce your taxes to zero. Yes. You know? And if you're the average American person, if you're an ultra successful American person making a million dollars a year, you will pay zero taxes because your appreciation on this $25,000,000 jet will be so massive. But yeah. So anyway, segue, we are in the buildup right now to launching our instant investor program on March 1 is when it officially launches. Basically, what it's gonna be is an eight week program where the entire system that we have spent the last two years in hundreds of thousands of dollars of marketing and trial and error and high fives and frustrations and everything in between. We've built it into a system, and we turned it into an eight week course that anybody can come in and start basically building a system exactly like ours. Along with that, there will be direct access to us, including a weekly one hour coaching call where you can ask us questions about how to optimize things, we can work on me with the sales process, we can help build the business to whatever lifestyle you're looking to live, whether you want to be a full time investor and run a business like a full on business like we do, or you just want the lead funnel to give you opportunities as a casual investor while you work your w two. Because regardless of what you're trying to do, real estate's a lot more effective if you're buying at a discount. And with the handful of people I've talked with in the last week, that's one of the biggest things is like, I kind of like my job, like I don't want to be a full time investor. That's perfect.

Mike DeHaan: [29:56] Honestly, it just comes down to scale. You still like work your own leads, you still have a chance at bat to buy properties for $50.60 cents on the dollar. And tell you what, you buy five or six of those, all of a sudden, I promise you're not going to care about your w two job anymore. Right. Or yeah, honestly.

Dan Austin: [30:11] And it's possible, like, we've proven that you can you can do a bunch of deals while working jobs. And I'm like you, a lot of guys I talked to, they're they're working. They're even high income earners, And that $300,000 range, but they know they want to get into real estate and they need a way to get excess cash out of their basically savings account. But they also know I don't want to overpay for a property. Exactly. Which is what they feel like they're doing. So then well, don't overpay for it, but at a discount. Exactly. And when you're buying at a discount, or when you have

Mike DeHaan: [30:37] a contract at a discount, there's so many different exits versus, you know, like we said before, buy real estate and wait. Sometimes you don't want to wait. Sometimes you want to wholesale that deal and make $30.40000. Sometimes you want to flip that property and make $80 Sometimes you want to do a cash out refinance and have infinite returns on this rental property that you just burned all your money out of. That can only be done if you're buying at a discount, not if you're competing with all the other knuckleheads, working with realtors, buying off the market and paying $40,000 over asking price for a dump of a property. Yep.

Dan Austin: [31:08] Yep. So Exactly. And good luck burning that because the appraiser's gonna say, you bought it on the market for this price that doesn't count.

Mike DeHaan: [31:15] That is one of the most untalked about things with that whole process. The honestly, I didn't even really realize until we started getting pushed back on stuff like that. Yeah. The fact that it is on the market for a price versus bought directly from a seller completely screws up how an appraiser analyzes it. Yep. They won't even recognize that you bought it for undervalue on the market because they're like, why would it have been listed for that on the market if it wasn't worth that? Yep. Like, well, it was, but now it's worth more. And they're like, I don't know. Don't know.

Dan Austin: [31:46] They assume it's a perfectly efficient market and because it was on the market that the market dictated the value. Exactly.

Mike DeHaan: [31:53] Yeah. So anyway, if that program interests you at all, we're kind of selective on the first low group of people. Ideally, we want people that are hungry to come in and want to succeed. We're not in like the phase of our mastermind course, we're just going to be pitching it to everybody to come and give us money and then be a sucker. So we want people that are gonna come in, be engaged, gonna get after it and sort of work with us to build out this thing. So if that interests you at all, go ahead and shoot me a message on Instagram at Mike underscore invest or hit up Dan at investor man Dan. You can also check out the details of what it consists of on the website for the program at instantinvestorprogram.com. And besides that, I mean, I'm pretty pumped for it. It's gonna be it's gonna be a good time.

Dan Austin: [32:37] Yeah, I'm excited. And like, seriously, though, like, even if you're dabbling or thinking about it, just reach out to us. We'll sit down, have a phone call with you. And if it's not a good fit, we'll tell you right away.

Mike DeHaan: [32:46] Exactly. Yep. And it's officially launches March 1. After March 1 is going to be full price. If you join in before that you're part of the first group who gets liked for that, you're going to get access at half the price, which will be $2,500 instead of $5,000 So that's a pretty good value right there to literally $2,500 to skip the 100 thousands of dollars in years of headache that we have dealt with. That's right. So just get it cut to the front of the line and be competing with everybody right away. So, yep, go ahead and check out instantinvestorprogram.com. Hit me up on Instagram at Mike underscore invest. Hit up Dan at investor man Dan. Check out the podcast Instagram if you like collecting keys podcast and tell your friends. We're trying to grow this thing. I feel like I got pretty pumped up at the end of this. So now that it's 09:00 at night, it's probably not the best mental space to be in. Hey, gotta know what you gotta do. But alright. Any last words, Dan?

Dan Austin: [33:42] No. I'm good, man. I'm excited for this instant investor program. Sounds like you're gonna have a fun weekend this week. And so I'll see you all next week.

Mike DeHaan: [33:48] Right on. Thanks, everybody. Talk to you next week.

Speaker 2: [33:52] Thanks for listening. Please leave us a review on iTunes or wherever you get your podcasts, and check us out at collectingkeyspodcast.com for tips and guides on starting your own real estate investment and wholesaling business.