Using Service Providers To Find Distressed Properties with McKinney Holland

McKinney Holland: [0:00] I just had this epiphany when I'm standing out there and the guy's loading on the back of his truck. I'm like, Hey, what if I pay you $2,500 if you send me leads? What houses do you go to? Do they want to sell their home? Cause they wanna sell their home. I wanna buy their home. And so that's kind of where it started. Welcome

Speaker 2: [0:21] to the Collecting Keys Podcast. The show where you'll learn how to use real estate to create massive income, not just passive income. Real estate doesn't have to be a get rich slogan. Listen to the country's top real estate operators, and you'll have all the tools you need to replace your w two income and go beyond in under twelve months. Ready to take things to the next level? Let's jump in with our hosts, Mike DeHaan and Dan Austin for today's episode of the collecting keys podcast.

Mike DeHaan: [0:57] What is going on, guys? In this episode of the collecting keys podcast, we have McKinney Holland, who you have never heard of before because he apparently is not online anywhere. We learned at the end of the

Dan Austin: [1:09] show, but he's a ghost.

Mike DeHaan: [1:11] He is a ghost, but he is one of our OG members of our instant investor program. And we were so excited to have him on the show because he is kind of the epitome of success, not only in just like what he's done, which is very impressive, what he's put together for himself, but also pretty much every single limiting belief that people tend to have about this business are not having enough money, not having enough time, not having enough knowledge, you know, not having, know, having a w two job, whatever else. He had all those same things. And he has just sort of found his little niches within the business to allow him to be very successful and to find ways to get deals done without having to worry about any of that stuff. And, you know, I would say that across all of the investors and wholesaler stuff that I've met across The US, he's probably one of like, the biggest, like problem solvers, the most entrepreneurial people that I've encountered. And, I mean, the things that he brings to the group on a very good basis always just blow people's minds.

Dan Austin: [2:10] Yeah. He's he's like a creative and a problem solver. Like, those are the two attributes I would I would put on because he's creative in that, like, comes up with just ideas out of nowhere and then he actually implements them, because it's like easy to come up with an idea, but actually implementing them, and then using those to solve problems, like, because he gets some wild ass deals out there, and somehow makes them work. Where most people would be like, they tap out after dealing with seller x, y, or z that he deals with, but he solves their problems. He even talks about how he kind of approaches these sellers in the episode. It's pretty awesome.

Mike DeHaan: [2:39] Yeah. Is. And, you know, so as we get into it, he's gonna go into like how he creates these like proxy businesses that generate leads, like, and how he's doing direct mail himself versus using a mail house, how he started seeking cash flow by doing this virtual investing in these markets that, like, no one's ever talked about before. There's just so many little tiny, just like twists on the tail that he has jumped into, which has just been super, super awesome. And the funny thing is, too, it's not like he's getting easy deals. But he has some of the craziest stories with like insane sellers and situations out of anybody in our instant investor program. But he's unfazed, keeps grinding, keeps go, you know, moving through everything. And sure enough, he keeps making money as well. So it's been super, super fun. So anyways, guys, do you wanna reach out to McKinney? Sorry, but you're kinda SOL. You gotta join the instant investor program if you want to converse with him and hear about what other crazy ideas he's spinning up. So you can do that by hitting me up on Instagram at Mike underscore invest. Besides that, please share this with anybody who's interested in real estate or has making excuses for why they can't get started. And McKinney will absolutely shoot that down in the over the course of this episode.

Mike DeHaan: [3:47] So anyways, guys, tons of great knowledge here. And I know you guys will enjoy it. So please listen carefully, take some notes and enjoy the show with McKinney Holland. Alright, McKinney Holland. I am super excited to have you on the show, man. You are one of the OG Instant Investor Program members. I think you're pretty dang close to day one. You're maybe like a couple days.

Dan Austin: [4:11] It's like the inaugural member.

McKinney Holland: [4:12] Yeah. I was pretty one. Was

Mike DeHaan: [4:14] I appreciate you were one of like the first people to join that wasn't like kind of in our circle, because we just connected randomly online. Oh, yeah. But I'm super excited to have you on the show today, man, because you are one of the, I would say most entrepreneurial investors that I've met

Dan Austin: [4:29] very creative

Mike DeHaan: [4:29] in the way that we give you kind of the playbook through our program. But then you say, know what, I'm gonna do this my own way. And it's gonna be way better and way cheaper. And just like figure it out, man. So I'm super excited to have you on the show.

McKinney Holland: [4:41] I appreciate it. Appreciate it, Mike and Dan. Yeah. I mean, your group is just phenomenal. Phenomenal. Like, I'm set to make like $200,000 this year from the freaking side business. You know what I mean? Like, you know, That's from a side business incredible. Like I'm not on Etsy, putting up a workshop, whatever, doing that.

Mike DeHaan: [4:58] Not selling feet pics, doing any of the weird stuff. Just real estate,

Dan Austin: [5:01] that's it?

McKinney Holland: [5:02] Yeah, just real estate. It's one steady stream. The old fashioned way. The old fashioned The fashioned So, yeah, it makes the most millionaires for sure. Know, whenever you Google how to make side money, it's real estate. Always comes back to real estate.

Mike DeHaan: [5:17] Absolutely. I love it. So awesome, man. So I guess to to dive into this thing, we're gonna take a jump into a lot of the different little, you know, strategies and stuff that you have been working on. But let's hear about your background first. You know, kinda I grew up was, like, real estate part of your history? How exactly you got introduced to real estate? Why it's interesting to you?

McKinney Holland: [5:38] Yeah. So, I mean, I started off at Clemson as an econ major. You know, 2008, 2009, rough economy. Right? So Yeah. Graduated a semester early by giving up my real estate aspirations to switch over into finance and then finally accounting. And so I started accounting. Accounting pays well. So that's what I did the first ten years. Always wanted to do real estate. Always wanted to do it. So, you know, got a letter in the mail from Zillow one day just wanting to buy my home. Right? And so, I mean, I sold to Zillow for like just over $200,000. So I'm like, man, we all started trying. Always wanna do real estate. Now's the better time. Like, I mean, it's kinda like my first property. Right? My own primary home. I didn't think of it. Wasn't investment. I liked the home, starter home. Right? And so that's kinda where I started. I started getting on the Reddit. So I met Mike, fellow Redditors for sure.

Dan Austin: [6:30] Couple of fellow Redditors. Were you guys part of the Reddit strike?

McKinney Holland: [6:34] No. No.

Dan Austin: [6:34] I'm not Just wanted to make sure.

McKinney Holland: [6:36] And the Reddit, you know, like, I mean, I'm just I'm just there for entertainment. I'm not there to make a stance yeah. Or Give me some entertainment there, you know? But yeah, I'm looking at that time, back to your entrepreneurial point, I'm looking to find or create a system, hire somebody with a computer background to make a system to scrape the public data. Because at that point in time, I am an asset manager at my company, hard money lender, and I'm doing REOs and foreclosures. I'm like, man, if we can get these type of if I could get come across these types of properties before anybody else knows about them, man, there's a lot of money to be made there. And so Mike reaches out. I make a post. Mike reaches out and like, yeah, I know of a system. I'm like, there's a there's a one that already exists? And it's like, yeah, I'm also, you know, creating a group, drumming up a group. Right? Would you like to join? Like, I've never met him. I don't know. But, know, he's given me some really good insights, some really good information. I look him up because, you know, looking up county records is kinda my thing through my job. Man, he's doing some deals. How did he get this $600,000 home for 200 and something thousand dollars and turn it over in a month? Again and again and again.

McKinney Holland: [7:48] Like, I mean, like, I'm seeing like, man, you're doing some major deals. I wanna hear some more, Howard. Don't even know what wholesaling is at that point. And so, I mean, you know, your coursework is right up my alley. It's really right up my alley. I mean, the videos are what? Like, some of them are like thirty seconds, some of them are two minutes, some of them are four or five. Like, I think I did the whole course in like a day or two. Like a day or two. And I've got all this knowledge, this great foundation able to build upon. Right? And and so, I mean, I meet Scott. Gotta give Scott a shout out. Ended up flipping my first house with him. And Scott's

Dan Austin: [8:21] in our group. Yeah. Scott's another one of

McKinney Holland: [8:23] our group members. Love Scott. Love Scott, man. We're still keeping contact to this day, you know? Yeah. Through that house, I got a group of five properties. Right? So, I mean, you know, I've got $30,000 in my pocket, you know, off of, you know, maybe 5,000 mailers. And so, you know, what's the next step? So, you know, just start marketing, doubling down. I didn't look at it the way I should have. You know, I spent a lot. Like, great. Know. I wanted side money. But you know, now my focus is a little bit. Now, if going back in time, one thing I would have done, I'd take a penny of it, and that's marketing dollars. That's what I think about all the time, marketing dollars.

Mike DeHaan: [9:01] Just start doubling down. Yeah. So it's funny. I'm trying to remember like how we initially connected on Reddit because I'm guessing what we did is you had a post and I probably just commented on it. I don't even know like how we gotten to the point where all of a sudden you're paying money to I think you paid us $2,800 Yeah. Coming to a group, you just sent in some random guy that you met on the internet. Right.

McKinney Holland: [9:21] That's wild to think about like, yeah, I gave somebody $2,500.

Mike DeHaan: [9:24] Yeah. Yeah, which is super funny. So but then, you know, you get into it, you've been a, you know, like sort of staple of our group. You kind of had this, you know, a little bit of this real estate, I guess exposures through the Heartland lender you're working for. What was your, I guess, initial goal when you started and you decided that you were gonna try and pursue real estate? Was it passive income? Was it buying rentals? Is or is it literally just like trying to figure out how to make these large sums of money from those opportunities, of those opportunities that you would see to the hard money lender that you worked for?

McKinney Holland: [9:54] That last point is exactly it. Just wanna make a little extra money from those opportunities I saw. Because I mean, I mean, you know, you see a lot of the people, you know, coming in for the funding. How are they getting these deals, man? I mean, some of them are getting like, you know, 40 something percent ARV. Like, I mean, how do you come across that kind of thing? Yeah. And so, I mean, now I know. Yeah. They've got a strong marketing engine. They're getting that phone to ring Yeah. Daily on a daily basis. So, I mean, when people are calling you, man, that's the hardest part. Once you got that Yeah. And you know it's a numbers game, you're gonna get x amount per month under contract. You love it, flip it, kinda like it, dispo it. Right? So Mhmm.

Mike DeHaan: [10:36] Exactly. Yeah. And you came into our group and you started in the real estate investment business. And something like an air that's really common for a lot of people, right, you're a little bit cost averse, you didn't have a huge amount of money on the, you know, just sitting in reserves to throw into this system. You know, we kind of gave you the foundation. But one of the biggest things we always talk to new people, and they're starting real estate investing is everyone that says you can kind of like just do it with no money is a liar, honestly, like, you're gonna have to have some kind of operational cause, some kind of ability to reach out to people or you have like a really rich friend that pays for everything for you. But of course, the people that are saying no money down, he's like, well, never tell you. Yep. But you came in and this is the reason why I wanted to have you on the show because you were super resourceful with kind of how you started to pursue stuff. So you may kind of give the foundation of what you look for, you actually started to create almost like these different lead gen businesses. Yeah, you have used to get very significant number of deals and very interesting opportunities. So I don't wanna fully spoil it, but maybe dive into kinda what your thought process was and build those up and what exactly that all looks like, because I think you're about to blow some people's minds. So you're alluding

McKinney Holland: [11:50] to junk hauling for sure. Yeah. Man, that's been I stumbled upon that. I wish I had the idea. I just, you know, had an epiphany for it. But no. Like, my wife has this little garden out back, took down the fence, had this post sitting in my my my backyard for, you know, a couple months. She's like, rid of it. Get rid of it. Get rid of it. You know? I don't own a truck. I don't wanna go to Home Depot, rent a truck and all that stuff. So, I mean, I start reaching out to junk haulers. I mean, like, I guarantee you that it was not a five minute job, but I was getting $3.04, and $500 quotes. Right? Mhmm. And so, you know, I just had this epiphany. When I'm standing out there and the guy's loading on the back of his truck, I'm like, hey, what if I pay you $2,500 if you send me leads? What houses do you go to? Do they want to sell their home? Because they want to sell their home. I want to buy their home. And so that's kind of where it started. Leaving it in the hands of, you know, someone else to do my marketing probably wasn't the best idea. Cause, you know, some weeks he's he's sending me five homes, some weeks he's sending me nine radio silence. So I have another epiphany. Let's go do my own marketing. Right? So I log on Facebook, watch a couple YouTube videos, learn how to market on Facebook.

McKinney Holland: [13:05] And I'm spending $200 a week at that point in time for my junk hauling business. I've got a website. I've got a Facebook page that works with my own number, and I'm ready to roll. And so that's my lead gen, and it pays for itself. You know? Because I'm I'm sending out the jobs to other legitimate junk haulers that actually have a truck that can do the work. Mhmm. And I'm getting a 50 to $100 from the job. Then on March 9, I have a lady reach out and I shoot my shot. Hey. I also buy homes cash. Would you be interested? And she says, yes. I'm like, wow. After a couple months, I I got one. Like, really? This is unbelievable. Long story short, I buy the house for $255,000. We're gonna list it next week, hopefully, $415,000. You know, that that's pretty big. It's pretty significant. Right? Took a long ways to get there because, I mean, there was some drama for sure. She decided she didn't wanna sell me her home. I mean, like, you know, two and a half weeks later, she decides she doesn't wanna sell me her home, cuss me out, bad emails, bad calls, causing Mr. Junk Man, all that stuff. And she goes to Mexico for Mr.

Dan Austin: [14:10] Junk Man.

McKinney Holland: [14:11] Yeah. Mr. Junk Man, I will not sell you my home. So we cloud title and eventually she comes to your senses and and and sells. And then she takes, you know, couple weeks off to go to Mexico. And this is a hoarder house, by the way. This is a hoarder house Yeah. That I'm fully expecting to spend, you know, under $10,000 on. Just got our quote back last week. It's gonna be $32,000.

Dan Austin: [14:33] Is that to get everything out?

McKinney Holland: [14:35] No. Not to get everything. Or is that the repairs? That's the repairs. That's the repairs. So much a junk, you can you can never really tell. I mean, I had that built into the numbers, but I was I was being pretty hopeful, saying under 10. But, yeah. I mean, ended up getting bitten by fleas. I mean, like, I still have marks. Mhmm. It was a wild ride. Wild ride. But what would you do for a 100 and something thousand dollars? You know what I Totally.

Mike DeHaan: [14:57] And so that was kind of the start. And so I guess just to rehash kind of what you did is, you know, you saw the opportunity with these junk on companies, and your thought processes was, you know, probably these junk calling people that own properties that have junk, right? They have issues. So you set up this essentially proxy business

McKinney Holland: [15:13] Yep.

Mike DeHaan: [15:14] Where you are collecting leads for people that are required by junk calling services, the legitimate opportunities you sell to these junk calling services, you don't actually have to do the work. You sell them for why you said a couple $100, I think. $50 bucks. Yep. $1,500, right. So you're basically getting your money back, you know, covering the Facebook ads, maybe a little bit of tiny profit in there depending on it. And then as you go through and you feel those conversations, you try to identify if they're potentially motivated seller, if the junk that they're looking to have cleaned up is, you know, with a property that they maybe don't wanna deal with anymore. And you are getting leads this way and you are signing deals this way as well. That is spot on.

Dan Austin: [15:53] It's pretty incredible. Yeah. Spot on. Spot on, sir. I wanna hear about the other. I know it wasn't your idea, was actually somebody from our group's idea and just your openness to try new things, kind of like how you were really just making your own direct mail. Yeah. Instead of going and doing Mike and I do, is just go buy it. I just love that story too because it just your ability to adapt and also take in feedback and input and kinda turn take your own twist on things.

McKinney Holland: [16:18] Oh, for sure. For sure. So, I mean, you know, direct mail's expensive, man. I mean, we're talking a dollar dollar plus nowadays per piece. Right? And that's expensive. So, you know, I really try to work on my bottom line, work on my margins. So, yeah, I do my own direct mail. Wes and I group, you know, he does handwritten letters, and I found a way to make it look handwritten in Microsoft Word. And so I do my own direct mail. I actually just picked some up. I would do a thousand letters at a time, buy them for 8¢ envelopes on Amazon, go get a thousand inserts of, know, just eight by 11 paper, and pay somebody a couple $100 to stuff the envelopes and put stamps on them. Yeah. So I mean, I'm at about 60 to 65¢ per letter right now. Wow.

Dan Austin: [17:08] So you're saving quite a bit of money doing it yourself.

McKinney Holland: [17:10] Yes. Yes. Yes. It's it's a pain. I'm at the point now where I need to, you know, start spending to save time because, you know, wanna be efficient with your time. But yeah, do my letters. I mean, I've got some, got stacks, they're all around here.

Dan Austin: [17:23] Yeah. Now that's great because I think too, like you're saying, it's not necessarily the most scalable method, but when you're trying to pick whether you should market or not, and you're kinda strapped for cash, or you're trying to, like you said, trying to get your margins super tight so you can keep going in this business, something like that, or being creative, being willing to step outside of what the normal, know, what like Mike and I teach, step out for a minute and and actually lower your cost and put a little bit of more time and effort into it while you have the time, it's pretty incredible.

McKinney Holland: [17:52] Oh, Yeah. For sure, for sure. And I do I do appreciate, you know, the time savings. Yeah. I mean, mail, I can't think of a better marketing tool in this line of work than direct mail. You know, I actually told my BA to stop doing SMS this week, this past week. Uh-huh. Just because, I mean, you know, get so many people kicking the tires. But if someone calls your phone from direct mail, they take this envelope and walk it into their kitchen table and open it, read it, and then call you. They're motivated. They're legitimate. Everybody that does that is a qualified lead.

Mike DeHaan: [18:23] Uh-huh.

McKinney Holland: [18:24] End of story.

Dan Austin: [18:24] That actually brings up a point I wanna ask you about, because you do work a full time job. Yeah. And you're talking about direct mail. How does that work? How does your system work when you're doing your day job, you blasted out a few thousand letters, people at Evelo are gonna call you at any time of the day. Like how do you manage that? Like are you, what are you doing I guess to still meet the speed to lead, still answer these calls, to still close deals while you're working a full time job?

McKinney Holland: [18:47] Oh yeah, my BA, my BA. I took the time to train her, to really train her how to do this. Man, she's really intelligent. She's a chemistry graduate down in The Philippines studying for boards. So this is what she's doing in her free time. And yeah, I mean, took the time to train her on Saturdays and Sundays to really get her script down, her dialect down, let her know how to talk to people, and just putting in that investment. It has paid dividends for sure. So I mean, right now, I'm just hearing from her, hey, you have an appointment on Saturday, Saturday morning, and I'm going to it. Yeah. That that's about it. That's awesome. So you

Dan Austin: [19:24] give her access basically to your calendar, she knows which days to book. And basically, you probably give her some standard scripts, but other than that, she's just trained and you've got her working on her own independently now.

McKinney Holland: [19:34] That's exactly right. That's exactly right. It's awesome. Yeah, so.

Mike DeHaan: [19:37] I love it, man. That's like all like the basic stuff that, you know, we coach, other people coach, where the number one objection that we always have is around first, money, right, being able to afford it, and second is time. And you're basically have taken both of those and said, I also have these issues, but I'm just gonna figure it out by kinda doing it my own way. And as a result, you know, you said you're gonna be making $200 this year on top of your w two that you still have. But you even though you I know you do have some ambitions to potentially leave that here in the near future. So that's awesome, man. So I guess with, you know, going through those different steps of, like, trying to figure all that out, I guess, like, how did you figure that out? Like you're like, do you have like other places? Are you just like full on like, entrepreneur ing it right now? So is that a verb that we can use? Like, are you trying to emulate other stuff? Or this is just this is just how you normally roll with everything? No.

McKinney Holland: [20:32] This is how I normally roll. I always try to find a better way. That's how I got to where I am in the corporate world. You know, I've never been the smartest. I actually hate accounting. I've always hated accounting. I will always hate accounting. I don't do my own accounting. I always hired it out. So, I mean, you know, being able to take your boss's stuff and improve it, make it shorter, not a pain point, something I've always done. So, I mean, it's just kinda wired.

Mike DeHaan: [20:55] So you're just a natural hustler, dude. No. That's awesome. Right. And the thing is, that's great. And this is why you know, I know long term, you're going to do extremely well. Because this mentality, right, and this sort of willingness to figure stuff out is going to translate as you start to have more and more scaling. Which I think you've already started to do with some of the pre foreclosure stuff that you've been targeting.

McKinney Holland: [21:14] Yeah. The pre foreclosures, that's pretty much my niche now. My VA goes onto the county website daily, pulls any name that's new on there. Uh-huh. Sends over a list, put it all in envelope, and me and my 18 old go for a car ride every afternoon. Mall every day, Monday through Friday That's awesome. After work. So yeah.

Mike DeHaan: [21:36] So you're hand delivering those too.

McKinney Holland: [21:38] Hand delivering them. Yeah. Because I mean, you know, you think about speed to lead. Like, I'm local. So, I mean, you think about somebody that's, you know, using a service down in Florida. Mhmm. Even if they live in Atlanta and wholesaling in Atlanta, they're going down to Florida to get their mail. And then it's coming back. I mean, that's like two days, three days. Mhmm. Fastest. I'm dropping in same day. Sometimes they're getting it next day or day after. So like a lot of times, as far as these sellers know, I'm the only show in town. You know? They don't Yeah. Can you buy homes cash? Ten days? You can close in ten days? Absolutely, I can. So, you know, speed the lead, man. So I think that process is starting to, you know, really pick up. Yeah. Got a 3% return right now. 3%

Dan Austin: [22:21] That's incredible. Wow. 3% response rate when you deliver mail. So out of a thousand, you're getting would that be 30 calls?

McKinney Holland: [22:29] Yeah. But I'm doing basically, you know, 15 to 25 per day. Let's call it a 100 a week. So I'm working on three to four calls per week

Dan Austin: [22:37] right now. That's pretty incredible.

McKinney Holland: [22:39] But I've done like six deals the past month. Two months. The past two months.

Mike DeHaan: [22:43] Yeah. But your conversion is insane from that. Right? Your your conversion, yeah, is like ten, fifteen, 20%.

Dan Austin: [22:48] Yeah. Well, that's really valuable too though because like, what you're saying there is you're kind of niching down, of course, which we all hear riches are in the niches, which we all know is true. But you're kind of like niching down such that you are providing such a low cost solution to yourself and really being super super laser focused on the the seller, your clients, and you don't need large volume when you have the conversion ratio. When you have a 3% response rate, and then out of those you're converting however many percentage, I know it's a high percentage from what we normally see. You don't necessarily need a ton of scale because you lose a lot of that laser focus when you do go mass, with these mass maladies and stuff. So that's pretty incredible actually.

McKinney Holland: [23:31] Yeah. Appreciate that. And, you know, you look in your prop stream and Sony's homes, no signs of distress. No bankruptcy list. No pre foreclosure list for sure because they just showed up. I mean, these are just people that, you know, fell in hard times and now their home is in disrepair, can't repair their homes. They've got good equity. So, I mean, you know, they're the owner. They're living in their home. So, I mean, you're not gonna find any landlord lists. I mean, no signs of distress. So Nobody else is calling them. Yeah. Nobody else is calling them. So, I mean, the small group of wholesalers that actually take the time to go to the county website, pull the records, read through them, and read the newspaper because there's one county that I live in, it's by newspaper. You gotta go pick up news to get the full list. And you gotta pick up a physical newspaper Wow. To go and read crazy. Is incredible. Saw me and like, yeah, this county has been great to me.

Mike DeHaan: [24:24] Yeah. I mean, and you say the small group of wholesalers, it's really small. You know how many there is where you are? One, it's you.

McKinney Holland: [24:30] You know, may maybe so. Maybe so. Coincidentally, I have found a couple that also do junk hauling. No Yeah. One thing I do on my calls, I'm like, yeah, you know, if you're gonna move out, yeah, let me do your job calling for you. I'll I'll help you move. You know, I've I've been talking to somebody else and he's gonna do the same thing for me. So I mean, that lets me know that I'm not the only show in town.

Mike DeHaan: [24:51] Yeah. And there's a lot people that are doing stuff that's like similar but different. But No, man. That's that's super cool. And so then, I mean, how many you said Jim had done six deals in the last couple months. You've had some huge deals too. Were were you one of the ones that had one of the pool houses here recently?

McKinney Holland: [25:05] Yeah. I've got one right now. You know, I'm thinking I'm gonna get that dispo tomorrow. Nice. Thinking about flipping it, thinking about dispoing it. I had the roofing guy go today, and that roof needs to be replaced. $30,000. It's a huge house. Huge house. It's kinda like a what do you call it? McMansion? McMansion. Yeah. Yeah. McMansion. It's a McMansion for sure for the area. That's great.

Dan Austin: [25:28] What are the numbers kinda look like on that thing?

McKinney Holland: [25:30] I'm in for $460,000. It's worth $650,000.

Mike DeHaan: [25:35] I

McKinney Holland: [25:35] see. So there's still enough margin there. But I think like couple weeks ago, y'all mentioned, you know, those higher end homes, man, you gotta be on your p's and q's. People buy the house because they don't like the way the carpet leads into the bedroom or whatever, you know. So Right. Not sure I wanna take that level on just yet. So, I mean, if I get a good offer

Dan Austin: [25:53] Yes. Especially like in these slower market now Yeah. Where buyers have a lot of choice, they don't have to run-in and make an offer within thirty minutes of them viewing, alright, they have time to go look at a dozen houses and and really pick and choose. So yeah, it's definitely good to probably wholesale if you're not in that high end market space already, like if that's not your specialty.

McKinney Holland: [26:13] Yeah. Yeah. So that's kinda what I'm I'm thinking. So I mean, if I get five in tomorrow, yeah, all day long, we'll sell it. We'll on to the next one.

Mike DeHaan: [26:22] Yeah. You probably can get get a little bit more than that depending on the condition. I mean, it's worth that, you could probably sell it for would you say about a $4.10? You probably get like $4.50 for it depending on the right buyer. Yeah. I mean, if it's just a roof and there isn't a whole lot else, like, don't definitely don't cut yourself short on it.

McKinney Holland: [26:35] Oh, yeah. Cleaning cleaning the carpet, patching up some holes. Yeah. That's it.

Dan Austin: [26:39] That'd be good.

Mike DeHaan: [26:40] Yeah. No. That that that's good stuff, man. So as you're going through these deals, I know you've been you've been picking up some rentals as well. This is the other thing you've been doing the super niches virtually. Yeah, you've been doing these on top of everything else. And in case you guys haven't heard, pick this up yet. McKinney has a full time job, you've probably heard his baby a little bit in the background. He's doing all of these hustle scenarios to get wholesale and transactional deals. You're also buying long term stuff virtually.

McKinney Holland: [27:08] Yeah.

Mike DeHaan: [27:08] And the one market that I don't think I've heard anyone talk about buying rentals ever.

McKinney Holland: [27:14] What Michigan? I don't know what it what's Is it the Netflix special everybody saw on me?

Mike DeHaan: [27:18] I think it's the fact that they didn't have drinkable water for like

McKinney Holland: [27:22] That six might have something to do with it. Yeah. But Michigan, man, I'm cash flowing like $642 a month on a home I spent $42,000 turnkey on. I've done nothing to I that take that I bought a comforter and some bed sheets, but

Dan Austin: [27:37] that's it.

McKinney Holland: [27:38] And, you know, like mid term rentals. Yep. So there's there's a website, furnishedbinders.com. It's like Airbnb, but for traveling professionals, specifically traveling nurses. There's only 19 other homes in Flint, Michigan that do what I'm doing. So I'm renting it out to travel nurses. No matter where you are in The United States, there are travel nurses that need a place to stay, a furnished place to stay. And, you know, there's like one good neighborhood in Flint, I'd say. One good one, Mott Park. I'm gonna tell you exactly where it is. Mott Park. It's like probably like, you know, eighty, ninety homes in there. And that's a safe spot. You know? I'd live there if I had to live in Flint. And, you know, I rented out for $1,500 a month. Uh-huh. That's it. And I get calls

Dan Austin: [28:23] You paid $42?

McKinney Holland: [28:24] Yeah. I get calls weekly.

Mike DeHaan: [28:26] And you got a loan on it as well, so your actual cash into it is super low. So your cash on cash is the same.

McKinney Holland: [28:31] Yeah. I think I put down, you know, $4,000.

Dan Austin: [28:35] Nice.

McKinney Holland: [28:36] I made that back in basically two months.

Dan Austin: [28:38] Yeah. Your cash on cash is crushing

McKinney Holland: [28:40] right now. Yeah. So I love it.

Mike DeHaan: [28:42] So and you did this as a as a midterm, so you furnished it. You did all that. You've never been to Flint, Michigan, I don't think I don't think anyway.

McKinney Holland: [28:48] I've never been to Flint. It was already furnished even. Okay. Because I bought it from another landlord that was wanting to buy a lake house in Michigan. She was wanting to sell it so and quickly. So picked that up. Yeah. It's cash flowing very well. Flint, Michigan, mid term rentals to traveling nurses. I don't care about the competition because I know you won't go invest there. So everybody listening, Flint, Michigan is where it's at.

Dan Austin: [29:12] You're gonna own the whole neighborhood by the end of the show.

Mike DeHaan: [29:14] I know, right? Yeah. And I think that's such a valuable point though because, you know, the it's somewhere that once again, have looked one way, you've kinda gone the other. You're managing this one yourself as well on top of everything else that you do. Right? I don't think unless you have a management company or

McKinney Holland: [29:30] Got a pretty awesome management company Nice. Up there. They're they're handling it. But I I'm responsible for finding the tenants. I mean, but I'm getting I get texts and calls like

Dan Austin: [29:40] Oh, wow. So it's pretty in demand.

McKinney Holland: [29:41] Even though I've got it pulled down right now. Yeah. I've got it pulled down right now. And I'm still getting calls and texts from people that are following

Dan Austin: [29:48] That's crazy. Yeah. It's a good niche. Another niche that you found.

Mike DeHaan: [29:52] Yeah. Yeah. You're just just the king of them, man. No. That's awesome. So this is awesome. So, yeah, in case you guys, yeah, can't tell, every choice you have, McKinney has basically just told you to shove it at this point. He really has overcome it if

Dan Austin: [30:04] you think about it. Like, we've heard, like, excuses from people on everything that he's done, like, the, oh, yeah, mail's too expensive, or gosh, like, VA's are too much of a pain in the ass to work with, or I can't afford a VA, or, you know, I don't like Filipinos. Like, there's so many different, like Oh, like Filipinos?

Speaker 2: [30:20] Well, like,

Dan Austin: [30:21] I shouldn't say that, like I don't think you've ever heard that. No. Saying like, I don't like virtual assistants off Filipinos exactly, you know what I mean? Like, oh, like the language barrier, or like there's just so many issues with that, which Mike and I know, we all know that's not true, but there's just all these excuses that people build up, right? And you've definitely crossed those off the list for any of those naysayers out there. I do have one question, one more question for you though. What do you think, and I kinda have, I have my answer, and I'll share my answer with you, for you to answer this, but like what is one thing that you think has contributed most to your success? Like what's like one thing since you joined the group, or since you started investing in real estate, that's actually consistently been like that you did that maybe other people didn't do or that you did just copying other people that contributed to

McKinney Holland: [31:04] your success? Oh man, knew I was gonna be asked this and I couldn't decide on one, but I gotta decide on one. Consistency, but not necessarily consistency in doing the same thing each month. The consistency in contacting that individual multiple times. Gotta get them pieces of direct mail. That's what you gotta do before you're gonna start getting phone calls. When I started, I would do bankruptcy list one month, pre foreclosure list the next month, high equity out of state landlord the next. And I was calling that consistency. That's not consistency. Consistency is getting a communication, whether that's SMS, direct mail, whatever else, getting them a communication somewhat for three months and then seeing where the chips fall. That is the key. I like that.

Dan Austin: [31:57] Yeah. Absolutely. So my answer of why I think that you've been successful, and this isn't the only reason, I actually think the reason you gave is more much more valid, but one thing I can say from the beginning, because you are one of our OGs that when we started the group, you've pretty much have been on every call, like consistently showing up in the evening, like ready to go with questions, you're participating, you're not only doing that with Mike and I, but like with other people in the group. Mhmm. And that's like the network effect right there, and I think showing up consistently and being open to listening to other people's ideas in the groups, to partner with other people in the group, like that right there, just that personality trait, that openness and showing up and participating is like, if I could tell one people one thing, that would be it right there if you wanna be successful in real estate.

McKinney Holland: [32:42] Yeah. Appreciate that. Yeah. Yeah. I mean, it's a great group. It's a great group. Like, you know, we collaborate. I feel like I know the other OGs as well, and then the new people, man, they've been really good, really strong. I'd say the ones that are most successful are doing what you you said. Mhmm. They're asking questions. They're coming to all of them. Because I mean, I use the group now. I'm still learning stuff. I am still learning stuff every week. You know? But the ones asking the most questions, you know, watching the videos and and putting work pen to paper, and then going out and actually doing it, those are the ones, you know, like Otto. I mean, you know, he does direct mail, and he makes $50,000 like, you know, for two months, whatever it is. Right. And then he looks at it as marketing dollars. That guy's gonna level up really soon. I know he is. Exactly.

Mike DeHaan: [33:28] That's a Valcom. And you can probably see that across most programs, things that people join. If you look at like the community as a whole, the people that participate show up every day, follow the process, and just like fully immerse themselves in it. I don't know. I think we have a 100% success rate with those people. And I think groups can probably say the same. It's the people that join things like that and kind of go one foot in one foot out, use excuses about it being too expensive, too busy, don't have time, just you know, as a guide for them not wanting to put

Dan Austin: [34:01] in the work. Those are the

Mike DeHaan: [34:02] people who aren't successful, you know, it's like that with everything in mind.

McKinney Holland: [34:06] For sure. For sure.

Mike DeHaan: [34:07] Awesome. Well, I really appreciate everything that you shared, McKinney. So one more thing before diving into our last minute questions. What's next? What's kind of on your horizon as you are, you know, continuing with all these different endeavors that you've worked on? You're continuing to hack the lead generation machine. What does the next, like, six months to a year look like for you?

McKinney Holland: [34:27] So I'm gonna add another VA and a lead manager. I've already been in talks with getting some some heads to go start walking properties so I can, you know, not because right now I'm trying to have because I've got the w two job rent. So I'm trying to have to hold off for Saturdays and Sundays. Uh-huh. So getting somebody to do that for me. So, you know, building out my staff. Six months from now, I want to be doing at least five bills. May come. I mean, think right now I can count on at least two, two per month, which is still pretty good, you know? That's where I wanna be in six months. In a year, I wanna have 10 properties, long term rentals, you know. And I want to be doing five properties, wholesaling and or flipping. Because flipping is kinda where my head's at, where my desires are. I'd have at least two flips going at all time. Right now I've got two, about to be three. I'd like to have two or three flips going at all times. So, you know, whatever I need to do to get that going, I'm gonna do it. So

Mike DeHaan: [35:24] Those are great goals. They're defined. You got time constraint. I have no doubt we'll be able to help you get there as well. I mean, I I say that selfishly, I guess, like, we'll be able help you. You'll be able to get there. And I'm excited I'm excited to watch it come together because I know what I'll

Dan Austin: [35:38] be excited to observe you get there

McKinney Holland: [35:40] for sure.

Mike DeHaan: [35:40] So awesome. Alright, McKinney, we're gonna dive into our end of show questions here. We get all first off. And man, you're gonna have to pick one. So so here's another thing about McKinney guys with the way that he's doing this business. I don't know what it is, but you have some of the craziest wild shit. Like, not only in just like in our group, but just from other wholesalers and and best that we deal with. You're always have some insane thing that you're you're coming to the calls with.

Dan Austin: [36:10] The one you posted today is crazy, but you don't have to talk about that one because that one is wild.

Mike DeHaan: [36:15] That's that's super dark.

McKinney Holland: [36:17] Yeah. That one was a little too wild. I don't know if I probably should've shared that. But yeah, that one's wildest. So is is it gonna be what? What's my wildest story?

Mike DeHaan: [36:25] Yeah. What's your wildest story is our first question that you have. So you can go ahead and just pick one out of your giant hat out of your quiver

Dan Austin: [36:33] of crazy properties.

McKinney Holland: [36:35] Walters' story is probably my first deals I got under contract. This is the South Side Of Chicago. The South Side Of Chicago where you don't wanna wear blue, you don't wanna wear red because, like, you know, it's the South Side Of Chicago. Everything you just thought about when I said South Side Of Chicago, that South Side Of Chicago. Okay. I've got like, you know, five people walking a group of five properties. They get to the third one and, you know, there's a shooting. Right? Like, people are getting shot shot at. Right? I mean, this is like 9AM in the morning. So they leave. They're freaked out. And my seller is like, well, what happened? Like, oh, man. You know, neighborhood's a little rough, whatever. I don't know if they're gonna buy that one. He wants to sell all of them. So that's how I lose my first deal. Right? So I mean, you know, I got my earnest money To

Mike DeHaan: [37:25] a gang shooting?

McKinney Holland: [37:26] Gang share? Gang shooting. I don't know. It's breakfast time, whatever. So, that's how I was my first one. And that was kinda rough because, you know, I remember the losses more than the wins because I looked up those homes. I was under contract for, I think, sixty five thousand dollars. It just sold for $1.20, I wanna say. $1.20 each. It looks really nice too. Really nice. But, yeah, more power to the flipper for the wholesaler that got them. Figured it out.

Dan Austin: [37:53] Yeah. They figured it out. They were willing to take their bulletproof vest with them.

Mike DeHaan: [37:56] Well, at least you're able to do that all virtual because I know you're not you're not local there. So, you know, if you gotta hear about it later.

McKinney Holland: [38:01] Yeah, that's right.

Mike DeHaan: [38:02] So, alright. Cool. Guys, second question. What is the number one tip you would give to either a new investor you can get started, or to a small time investor can take this to the next level? I know you said consistency was huge before. Yep. What's one more tip you'd have for him?

McKinney Holland: [38:18] One more tip I would have is gotta have a plan that you're willing to put pen to paper to and execute. I mean, you can't be relying on your personality to be able to smooth talk someone. If you're not solving a problem, you're probably wasting your time, you know, because you're gonna get a lot of people that are trying to kick tires. Yeah. I'd like to sell. Sure. Yeah. What is your offer? I want my Zillow value. You're never gonna be able to talk those people down. The ones that know they've got, you know, a water leak that you haven't found out about, but they know about. And those are the ones that are gonna sell their home to you. Right? And you've gotta find them a new place to live that, you know, meets their their rental requirements, you know, you gotta do that too. Because right now, that's where I'm running into. Well, where am I gonna go? Well, you find a place to go, get them a fair price, and you built up that rapport with them, they're gonna sell to you, and then you're gonna solve their problems. So always focus on solving the problem is where I'd go with that.

Dan Austin: [39:18] That's

Mike DeHaan: [39:18] the And best I think that's a big place where a lot of new investors tend to mess up is they focus on the asset, And especially when you're coming to off market real estate, the asset's rarely the key point of decision. Right? It's always something that they're dealing with.

McKinney Holland: [39:32] Yeah. You gotta talk to them as a as a person, not a transaction. Like, you know, hey. How are doing? Man, divorce? Man, that's tough. Tell me a little bit about that. Yeah. Get them to talk. Mean, they're telling you about their life story for thirty minutes, you've done nothing but listen to them. Provide, you know, maybe some loosely speaking therapy services to them. You do that, you built up that rapport, they trust you. They trust you to come through for them. So, you know, people business. Yeah.

Dan Austin: [40:00] So Yeah. For sure.

Mike DeHaan: [40:02] Alright. Last question we got for you, McKinney. And I know you're not really like a public figure, so you might not have an answer for this one. At least I don't think you have a desire to But where can people find you, follow you or reach out to you if you'd like them to do so? If you don't want them to, you can just say like, sorry guys, I'm a mysterious person, you don't get to talk to me.

McKinney Holland: [40:22] Man. So, I mean, I have an Instagram. I just added y'all to, like, I think a couple weeks ago. I don't know my Instagram I just logged in, thankfully. Don't know my Facebook link. Don't have YouTube. Don't have TikTok. Pretty boring guy, you know, all about college.

Dan Austin: [40:38] Yeah. Just a low key millionaire next door.

McKinney Holland: [40:40] Yeah. Low key. Low key. Soon to be a millionaire. Right? So, I mean, yeah. Unfortunately, I'm not the one that's got, you know, be driving, yeah, fancy car or anything like that. My car is a 150,000 miles, massive oil leak. My wife busts at me about, you know, because when we go places, like, you know, she doesn't want me to drive because there's a massive oil leak. You know, it's only like, what, $1,200 to fix. But you know, I don't wanna fix it because I mean, it's a car. Gets me from a to b. Survival. So Yeah. Love I'm the most low key person you're ever gonna meet up at.

Mike DeHaan: [41:11] Well, there we go. So if you guys, if you wanna connect with McKinney and brainstorm your crazy ideas with him, I guess you better join the instant investor program then.

McKinney Holland: [41:18] Boom. There you go. There

Mike DeHaan: [41:20] you Easiest way to do it.

Dan Austin: [41:21] It'd be worth it. Trust me.

Mike DeHaan: [41:23] Yeah. You can connect with him and all of the other people that are crushing it right now because we are just taking off. It's been super fun to see everyone really get their stuff together. Awesome. Well, thanks so much for coming on the show, McKinney. We really, really appreciate your time, man. And congrats on all the success you've had so far. And I'm super excited to see how things continue to grow over the next little bit because you're you have a lot of good things coming your way.

Dan Austin: [41:45] Can tell very well deserved to

McKinney Holland: [41:46] appreciate it, guys. Appreciate it. And yeah, it's been great.

Mike DeHaan: [41:49] Awesome. Alright, guys. Well, thanks for listening. I hope you enjoyed this show with McKinney Holland. You should absolutely consider joining the instant investor program, so you can come and learn from the stuff that he's doing. And if he did not severely challenge your beliefs, over all the excuses about why you haven't gotten started yet. I don't know tell you that you're making bigger excuses that don't make any sense. He's not any different from you guys. He has the same financial constraints. He has the same family constraints. He has the same time constraints that so many people that are willing to take action have. And he has said, well, I'm gonna do this my own way. I'm gonna find success. And here he is right now. He's crushing it. So hopefully, you guys got a lot of value from that. Well, guys, please share this episode with anyone who might find it interesting. And if you have any friends who are making those excuses while they haven't gotten started, this is definitely one you should share with them. Besides that, if you are interested in our instant investor program, you can hit me up on Instagram at Mike underscore invest. You can also go to collectingkeyspodcast.com.

Mike DeHaan: [42:47] And up there in the become an instant investor button in the top right, you can get some more information there. Besides that, we appreciate you all, and we'll talk to y'all next week. Thanks

Speaker 2: [42:58] for listening to collecting keys. Drop us a five star review on iTunes and send us a screenshot to mike@collectingkeys.com for your chance to receive a free collecting keys t shirt.