Course Correcting for Success PLUS Purchasing an Existing Real Estate Business

In this episode, I get the chance to interview fellow 7 Figure Flipper Darren Smith. Darren is a residential and commercial real estate investor in multiple markets across the country. After being in the Army and working in the computer industry, he tried his hand in real estate but unfortunately lost his earnings in the housing crash. This experience took Darren out of real estate for a few years, but his love for the industry drew him back. Working as an assistant to a wholesaler at first, Darren learned a great deal and started his own business. A week before he was laid off from his computer job, Darren joined the 7 Figure Flipping Mastermind group.   We began, as we often do, discussing what drew Darren to real estate investing. He said after being in the service for several years, he found himself sitting next to an investor that was flipping houses and had a multi-family property in Baltimore. Because he was super passionate about the work that he was doing, this caused Darren to catch the real estate “bug.”   Since his first deal in 2003, to the present day, Darren has had some ups-and-downs in this business, like every investor. We talked about how he made some money in his first go-around with investing but lost it in the housing market crash. After starting up his own company in 2014, he ran into some issues in 2017, hired a coach, laid off some employees, and rebuilt from there. We talked about meeting the challenges by changing strategies rather than giving up.   We talked about helping out clients, the pros and cons of wholesaling versus flipping, how Darren’s deal-finding process is ever-evolving, and so much more! We discussed a ton of marketing ideas and why cold-calling is a longer process than some other strategies. Darren explained the training and role-playing that they do as a staff in order to convert deals through this method.   Darren also explained the differences he has faced in speaking with both buyers and sellers during the COVID-19 pandemic. He said in both cases it is just really important to acknowledge the change in circumstances, and yes, things are challenging, but no one really knows what the future is going to bring. I asked about other changes they have had to make and Darren talked about how they are having home inspectors go out to take pictures and videos of homes, which ends up being the only necessary point of contact whether buying or selling.   I asked Darren what markets he is working in and he explained that he lives in Pennsylvania, works in two markets in Colorado, and just bought an existing real estate business outside of Philly. This was such a novel and interesting concept to me that we discussed this in detail. I asked if it was just a property database, and Darren explained that it is really the established business presence and reputation that they invested in. He even explained how they structured the deal, which he actually recommends to anyone attempting to do the same thing.   Darren wrapped up the interview by not only giving credit to his team but also pointing out how much he counts on the support and fellowship of 7 Figure Flipping. This character-filled investor gives us so much wisdom in the latest installment of the Just Start Real Estate Podcast, you would be crazy to miss it!

Notable Quotes:   “It’s like flying too close to the sun - you could have burned up, but you didn’t.”   Mike Simmons     “You have to assess what is going on and make changes accordingly.”   Mike Simmons     “Fifty percent of our processes are different than they were 90 days ago.”   Darren Smith     “We throw meat into the pen and let the lions fight over it.”   Mike Simmons     “The reality is, it’s a people business.”   Mike Simmons     “If it gets harder to sell, it will get easier to buy.”   Darren Smith     “Specialists make more money than generalists.”   Darren Smith     “We’ve gone from about 90% closing in person to about 90% closing over the phone.”   Darren Smith     “When you have the right people in place, scaling gets much easier to do.”   Darren Smith     “Any time there is economic hardship, rentals become more of a thing.”   Mike Simmons     “Dude, you are even smarter than I thought you were!”   Mike Simmons     “You have a clear focus, sound logic, and a strong game plan.”   Mike Simmons     “I have never been more thankful to be in a mastermind than right now.”   Darren Smith     “Masterminds are a lifeline. If you were on the Titanic, what would you be willing to invest in a raft?”   Mike Simmons  

Links: Flip Hacking Live Darren’s Email Return on Investments Just Start Real Estate JSRE on Facebook Mike on Facebook Mike on Instagram Mike on LinkedIn Mike on Twitter Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months