@ethanejk Your business model is very interesting, correct me if I’m wrong, you send out cold emails, to generate leads for Realtors to list,
how do you get paid ?
Do you split the commission or realtors pay you a flat rate once listing agreement is signed?
Seller bought the Lot for 245k in 2005 as an investment, hoping it’d appreciate.
Unfortunately not a single lot in the entire Golf Course community appreciate.
Others have sold theirs for 95k, 116k, 150k.
Seller and her husband are demanding 300k
She insulted me 🤣
So many ways to build wealth in Real Estate.
One of my Mentors made so much money in Advertising and cell towers.
He Strategically bought frontage road Land heading into cities. Rural lots in areas with bad cell signal.
lease these properties to companies Lamar, Outfront.
The C-student from your high school math class is out-earning the Chief of Surgery at your local hospital
He didn't invent an app. He doesn't know how to code. He flips ugly houses, and he is legally exploiting a math glitch that doctors are too "smart" to use
Society tells you that getting rich requires a 140 IQ, a massive startup idea, or 8 years of medical school. That is a lie designed to keep you functioning as an employee
The highest-paid people in my city do not have degrees. They have a calculator and absolutely zero emotion
They use an equation called the 70% Rule. It is a 6th-grade math formula that makes it mathematically impossible to lose money on a house. And because it is so boring, smart people completely ignore it
Here is the exact test with the answers written on the back:
Step 1: Find the After Repair Value (ARV). You look at houses within one mile that are fully renovated and sold in the last 6 months. If they sold for $250,000, your ARV is $250,000. You now have the final answer to the test before you even buy the property
Step 2: Walk through the ugly house with a contractor. Ask exactly what it costs to paint it, put in vinyl floors, and swap the kitchen cabinets. The quote is $35,000
Step 3: Run the 6th-grade math glitch
ARV ($250,000) x 0.70 = $175,000
Minus Repairs ($35,000) = $140,000
$140,000 is your Maximum Allowable Offer. Not a penny more. If the seller says no, you walk away and eat lunch. You do not negotiate with your ego
Why 70%? Because the missing 30% is your financial body armor.
10% goes to closing costs and agent commissions when you sell
10% is your buffer for surprise holding costs or market dips
10% is your absolute minimum pure cash profit ($25,000 in this case)
If you buy at the 70% line, the real estate market can crash 10% while you own the house, the contractor can go $5,000 over budget, the house can sit on the market an extra month, and you STILL walk away making money
The "smart" people watch TV, see a house they like, offer $190,000 because it "feels right," and spend $35,000 fixing it. They are in for $225,000 on a house worth $250,000. By the time they pay the realtor 6% to sell it, they worked for 4 months to lose five grand
Real estate is not about having a good eye for design. It is about strictly obeying a calculator
The surgeon is working 80 hours a week to pay off $400,000 in student loans. The C-student is working 4 hours a week buying houses at 70 cents on the dollar
Run the math. If it hits 70%, you buy. If it hits 74%, you walk
I will teach you how to flip houses. Link in bio, fill out the form and I'll hit you back
@millionairemelo Haha, I have a 3 year old, all day shes asking strangers to subscribe to her channel and welcoming people to her channel. Problem is she does not have one, wondering if its too soon to set her up.. I think 7 is a great age to get them started especially faceless
In Real Estate it’s inevitable not to meet remarkable people. Spoke to a Developer today.
Due builds $2M+ homes, sold his HVAC company he founded with his wife for Millions at 27 years of age. Had 150 employees at the time of sale.
Now he’s killing it in SC/NC, he’s 32