Unknown Deal Opportunities for 2024

Mike DeHaan: [0:00] What is going on guys? Happy New Years. I hope you all had a great holidays and welcome to the year 2024. If you were an entrepreneur like me, I'm sure you spent the holidays getting caught up on all sorts of stuff. And for you w two folks out there, I hope that you had some great downtime and we're maybe using it productively and you know, to grow something else out of w two if that's what wanna do. Otherwise, I hope you just had a good time chilling, hanging out with your family, doing whatever it is you people do. So if this is your first time here, my name is Mike DeHaan. I am one of the hosts of the collecting keys podcast. The show where we teach you to make massive income and not just passive income with a real estate investing business. On Fridays, we release what we call a Friday Focus, which is a little monologue episode, I guess usually a monologue, sometimes we have guests on here, that are usually something relevant to the week. They can be a question from a listener, a question from a member of our scale community, something that we've been pondering recently that we wanna talk about. Really, there's all sorts of stuff. We've gone all over the week just different things. We just think it's a fun short form episode to connect with you guys and to, you know, answer some of the questions that we get asked through Instagram of various things. Speaking of which, if you wanna hit me up on Instagram, I'm at mike underscore invest.

Mike DeHaan: [1:17] Go ahead and shoot me a question there, and I would be happy to answer on a future Friday Focus. But for this episode, since it's the new year, I wanted to talk about some potential motivated lead sources I see potentially becoming available to you in 2024 if you are bold enough to try and find them or try and position your business in these ways. And as you continue to start to grow your efforts, finding more investment opportunities, whether that's in your own backyard or nationwide, it's always important to kind of have a glimpse on who or where the most motivated opportunities in my life. So anyways, let's dive on in. I got three of them for you. Number one will be Airbnb owners. Okay, and that's right, you heard me. Even though these short term rentals were kind of the darlings of the 2020 and 2021 real estate boom, some of the like even biggest short term rental fans are starting to acknowledge that their properties are struggling a little bit, especially as things have just gotten so saturated as people have been sort of putting more properties on those platforms and trying to squeeze more and more cash flow out of their properties. So you know, as that phrase for short term rentals, really in 2021 took off, you had tons of people that were overpaying for these properties expecting higher cash flow returns versus like a traditional long term rental. Think I there was a stat a while ago that it was like 50% of Airbnb's that were on the platform in 2022 didn't even exist two years earlier than that.

Mike DeHaan: [2:41] So like basically doubled in a two year span, which is crazy. And as a result, are gonna be a ton of these people that probably not too happy with their investments and looking to offload, and to make things even more interesting. A lot of them probably have, you know, kind of done stuff to the properties or they might like have bought the properties at prices where they're not gonna be able to get all their money back out. So they might be looking to just offload them whether it's through creative or something different. Right? So targeting people's not gonna be an easy feat, but if you are willing to put in the work, maybe hire a VA, go scrape your Airbnb for some properties that are listed at suspiciously low prices, and find a way to reach out to those people. I imagine you'd probably find some decent deals, especially those properties that are in like neighborhoods or things like that where Airbnb's don't really belong. I mean, was recently looking in Salt Lake City, and my wife and I were looking to go down and do some skiing before I realized there was gonna be no snow. There was Airbnb's down there that were on the market for like $25 a night. That is a problem. There's no way that person's making any money if they are leasing these things at $25 a night. Okay? So go find those owners. They're all over the country right now and there's gonna be a ton of opportunities if you wanna track them down. This is something that we're pulling with exploring with in 2024.

Mike DeHaan: [3:55] We don't have a system up for it yet, but it is a thought that we have started to play with. You can definitely explore it as well if you wanna put in the work. Alright. Number two will be people who bought with low or no money down loans, especially over the past three years. And this has kinda been known for like a little bit, and you know it's been kind of one of the people that like the sub two community has really been sort of going after, is these people that bought with like zero equity and zero money down in 2021, 2022, properties dropped and now they're completely underwater. But to compound on that whole situation right now, those same people that probably couldn't really afford those homes to begin with, they are now facing increases in property taxes, they are facing increases in insurance, those neglected repairs on the properties that they bought and they overpaid for are starting to really cause issues. I mean anyone that was in the business back then in flipping, they had the same story of like, I had an FHA buyer and like, there was a bunch of stuff that was weird about the property, but they bought it for way over asking price, and all I had to do was go and throw some paint up underneath the awnings on the roof, because it was peeling paint that was against regulations. But everything else wasn't great and they overpaid for it. That situation exists everywhere. And now those issues that were there are going to start causing more and more problems for these owners, okay?

Mike DeHaan: [5:15] And the thing is with a lot of these people, and one of the reasons it became so popular with Sub Two, or like I said, they're sort of creative deal finders, is that they don't have any equity, so they're probably not even gonna be able to get out of them. So if you, know, if they talk to a realtor, they won't put a house in the market, they're gonna be stuck with it, they're gonna have to make, take a massive loss and actually bring money to the table to get out of those properties. This is where you as the investor can bring those people value by giving them the opportunity to get out of that debt that they no longer want to have in that previous property. Right? Luckily for you, these are easier to find. You can find them on mass data sites such as PropStream, which is what you we use, or by reaching out to realtors or sellers who have homes that have been on the market for a while but never sold. Opportunities abundant, they're easy to find, and these are definitely people you should be targeting with your marketing in 2024. Number three, and this one is kind of an interesting one, maybe controversial. As I dive into this, just so you know, I am apolitical. I'm neither on the blue or the red side.

Mike DeHaan: [6:17] I just like to figure out how to make money off of people's shenanigans as they start to freak out about different things. So for number three, it is an election year this year, guys, which always makes people a little bit interesting. K? And I think there will absolutely be an opportunity to make some money in, drum roll, the blue states. Okay? And this is contrary to what people have been saying over the last while, you know, in the wake of the Trump administration, so many people were getting out of blue states, going to red states for various reasons, and I think there's actually a tremendous amount amount of opportunity in blue states to make money right now, just because people are going to have adverse reactions to whatever the elections come to this year. Right? Whatever the outcomes are. You know, people like to rip on blue states, tenant friendly, blah blah blah, whatever. As someone who has made millions of dollars in the state of Washington, which is as blue as it gets, it's all blown out of proportion. Okay? In those states, you just have to follow the rules a little bit more. Truly not that bad, I promise. Not only that, but our states tend to have a lot of appreciation compared to a lot of the red states. So going into this year, what I kind of expect to happen is if the democrats start winning in traditionally red states, which some people are saying they might, I think that people will quote unquote flee those states and go to somewhere else, in which case you'll probably see a max exodus, you'll have people that own properties that are not awesome, that they're trying to get rid of, they can't get rid of for whatever reason, so if those states flip blue, it'll be a great place to start marketing and trying to find those opportunities when a lot of the red voters decide that they're gonna go move to Texas or Florida or wherever else they go.

Mike DeHaan: [7:53] On the contrary, you see states starting to flip red. K? You will see people from nearby blue states try to migrate to those red states, especially in something like the middle parts of the country where stuff's kinda the same. You'll see people starting to go to these states where they want to align with the politics a little bit more, and you'll see people that have these neglected properties in the blue states that will be starting to move away. Okay? So regardless of kinda what happens, I think that you will see these different sort of motivations by people looking to leave these states that may or may not have issues with their properties. You know, and regardless of kind of your political beliefs, you cannot discount the psychological effects these elections have on people, especially the certain demographic that is usually aligned with our motivated seller, which is a very sort of emotion driven, usually driven by, you know, who knows what else, you know what I'm talking about if you're in this game at all. And so try to find like a way to target that, and don't be afraid to stand up stuff in blue states this year, right? So, you know, if you're in most of red states, you find deals that are getting super competitive over the last little bit, Go blue in 2024, you know, start standing up some operations in the Blue states, and I think that regardless of what happens, you'll start to see a little bit of an exodus from those states. And whenever there's a migration out of an area, people say think that that means there isn't an opportunity.

Mike DeHaan: [9:12] For an off market deal finder, that's a great opportunity because you have a ton of people looking to sell. And when people are looking to sell, especially if they're making emotional rash decisions, they are going to want to sell faster, they're gonna want to way walk away with a little bit less for their home. And, you know, if you're a wholesaler, there's always gonna be flippers in those markets. You only need a couple of flippers, but you need a bunch of sellers to be able to make money. K? So don't be afraid to target that, and I bet you can make a few bucks on people's emotional reactions to things that are ultimately out of their control anyways. So, you know, you might as well make some money. Anyways, guys, that's it for my ramblings for this fine Friday. What do you think? Am I onto something or am I a bumbling idiot? Let me know. I won't be offended. I promise. I always just like to hear what people think about stuff I put out there. Shoot me a follow and a DM on Instagram at Mike underscore invest. Let me know what you think. Thanks for listening everybody, and we'll talk to you next week.