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DS35 | 25 year old wholesaling 50 houses and flipping Apartment Buildings | Logan Hand

thank you so much Logan for joining us
here on the dwelling show I’m super excited to have you on the show today
just a little bit about Logan so can you just tell the dwell-listeners kinda of
what you’ve been up to lately and kinda what you’re working in yeah sure thank
you so much it’s super super awesome to be on the show I listen to your podcast
every day and you know get in the mood it’s just like great to have another
young dude that’s out there and then talking about multifamily in bigger and I started investing from scratch a
little over two years ago I’m going into my third year now I came through you
know that clever investor so like an online wholesaling teaching company and
I jumped in the wholesaling and I was kind of like the crazy dude that was
like day one full time I was in sales before so I just dropped my other sales
job and just started figuring out how to do wholesaling and did my first deal in like 60 days small one really tiny one and then I just parlayed and parlayed it done
like 50 wholesale deals at this point and started apartment building investing
in my first year as an investor I just successively flipped that first
apartment building and I bought another 20 unit apartment building and I’m
already almost done stabilizing that one probably gonna resell that and I raised
you know partners and capital in order to buy bigger deals now this year so
this year I’m trying to buy 200 units and yeah just a bunch of crazy stuff
happens over again that’s my life I love it I love it Logan
a bunch a bunch of things going on there so first you jumped on a kind of a
coaching or training program with clever investor I know him very well on
Instagram and you started wholesaling so you did your first deal and then you
went up to 50 then I have you go to that point then you went into multi-family so
let’s kind of rewind back a little bit yeah for sure why real estate
it was really weird for me man like I started out in the insurance business at
18 years old I had my license and that was kind of something that my family had
done and I just realized really quickly it wasn’t something I liked it was
really boring to me it’s just something you and I do and meanwhile you know I
would watch those shows on TV about like you know selling real estate or flipping
houses and all these different things and I’ll just go through life I just do
my job and but kind of fantasizing about that stuff and eventually I kinda was
like you know I feel like I would kind of be really good at that I’m good at
negotiating with people and I’m really good with numbers I read a book by Manny
koshkin who was somebody that I just idolized on Instagram and I read his
book and I was like hey I love this guy what does he do turns out he’s a
commercial real estate investor and you know he built this massive portfolio and
that book changed everything for me like as far as the way I perceived buildings
and I just thought it was so fascinating so eventually stopped creating excuses
about not having enough money and found a way to start investing for free or you
know I can’t buy a house but how can I make money as an investor I knew I
didn’t want to be a realtor and that led me the whole ceiling and then will
ceiling led me to apartments and now I’m here so something came up just in my
mind as you were talking till you said you didn’t have any money but then you
forgot a way to basically still kick start your career in real estate right
and you didn’t want to be my major so first question is how did you from a
mindset perspective right how did you tell yourself like hey I have no money I
have nothing in my kinda whatever I do not much but I’m still going to make
money in real estate you know I’m following this guy on Instagram I read
his book everything makes sense I can do this how did you get yourself and your
minds that level I is I think I enter is the best with
Google man I mean it’s like I got rid of my own excuses by googling I just kind
of was like there has to be a way where you can participate as an investor but
not actually have the money to buy a house right and so I found out about you
know the the no money down investing which is technically wholesaling what
everyone’s talking about and I just learned that process and
learn the marketing and what it took to get those deals and you know just went
from there really I learned how to do it and I did spend my money you know I had
like seven thousand bucks to my name at that point I spent five thousand dollars
of it on education and at that point it was basically like either doing deal or
you’re gonna run out of money in two months because I had to pay my bills so
I personally believe people succeed when they’re put in situations where they
don’t have any other option other than to succeed so I put myself in that
situation where it was either just you succeed or you’re screwed that was that
was it so that’s interesting so before we get to the actual tactic that you or
should I say the step you took which was also lean you know for you to actually
participate as you said in the real estate investing game yeah my question
was why didn’t you want to be an agent why did why don’t I want to be an agent
mm-hmm I just saw the beacon investor and the power of being the person that
has the equity and controls the deal and the property and I just saw agents as
like a typical salesperson and like a horse and pony show type thing and I’m
not saying that’s a bad thing you can make a lot of money like that but I
wanted I want to play Monopoly for a living right I wanted I wanted to own
the stuff and I once I understood how they all made money I’m telling you it’s
just going anywhere and buildings everything’s totally
different in your in your brain right you know like I’m sure you know before
you ever found out about how real estate made money you would go to a McDonald’s
or go to a mall and just see it as a store right right never look at that
stuff the same once you understand that there’s a landlord behind all of that
and for these people to be there okay it is fascinating isn’t it the other
things that some of our listeners might be thinking is wait hold on did this guy
say you just say spend $5,000 on what um would does yeah yeah so that was like um
you know you get a mentor and they teach you you know how to how to do you know
the process from A to Z and they kind of hold your hand but really the
information itself is only 300 bucks it’s not very expensive you can learn
everything there but then when you get into application sometimes it pays to
have somebody to say okay do this to that do that and you can get things
going a lot quicker I saw it as you could easily and you probably know this
yourself do you could spend five grand in marketing mistakes like that and it’s
just it’s just better to just take someone’s advice to say this works this
doesn’t work and my strategy’s changed a bunch of different times in in my
journey tubes so it’s kind of always evolving so you went through this
mentorship program and the education as well and you came out on the other side
o selling 50 deals does that really help you did the mentorship really help yeah
I think so I mean I won’t say that it’s not possible to do it without a mentor
and I think you’ll also create your own mentors as you go like I have mentors
now that I created you know that I didn’t pay for but yeah it was
definitely valuable it worked for me um it helped me get going a lot faster and
I was doing full-time like I wanted to replace my income so I needed to go
quick I didn’t need to sit there and wait for six months to maybe make money
like I needed to make money now gotcha so somebody’s listening to this you know
maybe somebody like like you log on that they’re in a place where they don’t have
any money but they do want to get started in real estate and they’ve
trying to figure out how can I get started – so how’d what was the first
thing that you did I mean we know you went on your mentorship program but what
was the first thing that you did if you can rewind back to that time so I mean I
guess the first thing I did was obviously the I bought the not the
mentor but the training which was 300 bucks and which is basically just the
information right and that teaches you the whole entire concept of like what
wholesaling is and how its performed and basically the art of selling contracts
which is all you’re doing signing contracts whatever and then you know
obviously um you start your entity you form your entity and you can do
bootstrap marketing methods that are very very inexpensive or free what I
always tell people that say oh I don’t have a lot of money well flip side of
that coin is you have an abundance of time right and your time is you know
what you have less setup when you have more money right so you just need to use
your time to do the things that other people don’t want to do and that’s how
you can create your first opportunity in real estate well fantastic I really
really like that so you got started you started assigning contract you started
selling first and foremost for some of our listeners that might the minor note
is what is all selling whole ceiling is essentially always referred to as an art
form because it really is an art form it is getting a property preferably off
market directly to the seller that’s not listed that is distressed and suitable
for an investor like a fixer flipper or landlord that buys properties with cash
or hard money and you’re going to negotiate that property under
contract with what’s called a purchase and sale agreement with the seller and
you’re gonna negotiate that at a discount from its market value and with
the amount of money it means and repairs and then essentially what you do is you
sell the rights to your purchase contract to another cash buy which is
typically going to be a flipper or a landlord buy or something like that and
then you collect what’s called an assignment fee which is paid at closing
like I’m normal you know transaction would go or you can
also double close the problem so you basically carve out margins based on
crunching numbers and your ability to negotiate and good sound and deal with
the seller of the Frog nothing wholesaling is in nutshell sweet so you
said crunching numbers right so can you pick one of your favorite you’ve done 50
right if you do those two things in a year by the way I’m just trying it out
that was two years so two years each one each year but at
the end of my first year is when I jumped into my apartment building which
I predominantly managed and so that took my eye off the ball from the wholesale
stuff so I kind of slowed down a little bit from wholesaling because I wanted to
learn this whole apartment thing which I okay so so that’s really want us to
touch on the wholesale endo so give us one of our favorite deals how did you
find it and what was the story behind it okay so do you deal like we just did one
we’re closing this week how about that let’s do it alright so cold called
pre-foreclosures with equity listen you can get it off RealtyTrac everybody has
access to it we get people that have a minimum of 35 percent or more and they
are in you know it’s not foreclosed on which means they still can sell the
property but the bank is trying to foreclose so
cold call these people we get the owners information through there’s multiple
different skip-tracing stuff you can use you can use already I skip calm but your
your addresses and people in cold call them basically say you know hey listen
you’re in pre foreclosure we can help you save your credit the whole spiel
right got the deal under contract basically this lady wanted $3,000 above
her mortgage balance so she only she gets three brand we locked it up for
when we get that deal for bring that deal for 51 thousand is the payoff and
we over a three sore in 450 for assigned it at 72 and closed this week fantastic
I typically won’t be the ARV they have to repair value for the investor on the
end a 150 house gotcha oh yeah so fantastic
congratulations on that that’s really that’s really huge I never went there
the seller doesn’t live there it’s vacant
I sent my I have a business partner up in that part of Florida this house is
six six hours from so I never even saw it
I don’t even think I’ve seen pictures Wow fascinating fascinating stuff so
you’ve been doing a ton of these deals and then something changed and you were
like maybe I should start doing multifamily so before we even jump to
the motor family stuff how did you go from wholesaling to go and bigger what
was that what was your process in your mind what was that mindset shift like
for you well I like to say like I got into the apartment game it was kind of
by accident I didn’t seek it out a deal came up and I was just being my typical
wholesaler you know middleman itself where I’m like hey where can i margin on
this right but what you realize when you host
when you wholesale in volume number one it is a very stressful business there
are a lot of moving parts and deals fall apart more often but not you know like a
you have gills the clothes but you have a lot to fall apart as well and I
realize this to be kind of like a rat on the wheel chicks and I’m like dude I
don’t want to wake up every month and have to go make my money yeah every
single month I gotta go find a deal I got five more deals and I just was like
you know after about a year and a half I was like me and I can just start
figuring out how to build real wealth and you know I’m not saying there’s not
successful wholesalers out there but if you’re looking at the guy that owned
he’s worth a hundred million dollars he’s not a wholesaler dude that dude
owns buildings and offices and apartment buildings and you know strip malls
that’s what that guy owns he doesn’t know he’s not trying to wholesale houses
every month and I just want to be like the people like I want to strive for so
that was my mental like realization I love it I love it so you got the mental
realization that hey I want to create essentially long-term wealth right I
don’t want to have to wake up I’m trying to figure out I can make a quick twenty
twenty-five spread on this deal right so when you made that decision did you take
any like technical steps similar to the steps you took and you know when you
start you’re hosted and journey like educating yourself on what I found me or
did you just kind of jump right in yes so like the deal it was kind of those
things where like the deal happened before I tried to get the deal and I’m
just an opportunist at heart so if I see an opportunity I just figured out how to
make it work and then I would say before we closed I educated myself very quickly
on you know multifamily and how works and then being an owner I I did more and
more learning as far as like you know the power of apartment buildings and
I am layin like you know where the money is in that bet scheme so I kind of
learned it by doing it I didn’t you know seek it out but like once I had one I
absorbed more and more information gotcha fantastic so you like I said deal
kind of just came to you fell on your lap so can you tell us a little bit
about how you you know how you got to do how did you fall in your lap and how did
you fund it since you saw did you find it and how did you fund it I know so
this is a you’re gonna love actually most people I tell this hate this
because the first deal was an MLS deal everybody gets so bad that they’re like
what nobody finds deals on the ambulance but guys they’re out there you know it’s
like you just gotta have either yourself looking or somebody paying attention and
this was a classic case of a property that was sitting on the MLS and it was
with a really bad realtor so like you know property sit on the MLS and they
don’t refresh them it’s just like sits and no people even party even know it’s
there you know so anyways this one happened my
buddy was a realtor and he had just sold one of our flips that we’d remodeled and
he kept call me he’s like man there’s steel in this MLS but it’s an apartment
building and I don’t know if you haven’t even written landlord buyers and I was
like honestly you don’t have time for that you know like I’m trying to
wholesale houses you know so I blew him off for like probably two months and
finally I just got sick of him calling so I was like you know what let me see
what I can do call one of my investors up and I just sold a property – I was
like didn’t you say something you’re trying buy more rentals he’s like yeah
he’s like well I’m like dude I got the seven unit apartment building my buddy
keeps calling me about it you know do you want to look at it and so I told the
numbers I can’t seems feasible so anyways we go there to look at it we’re
going through this and we’re like man you know this is just really bad tenants
but like the building is is great like there’s nothing wrong with the asset and
we’re sitting there scratching our heads looking at this deal going where’s the
crap here like there’s got to be something wrong with this building you
know price is decent you know what’s going on well anyways he turned Sweeney
said listen you don’t have it under contract so you can’t charge me an
assignment fee and I said yeah that’s correct
so he’s like but how would you like to own 50% of the property and he’s like
you brought it to me he’s like would you like to help me run the property and do
the deal with me and if you come up with 50% of the money for the down payment
I’ll get the loan and you can own half the property with and so I turned to him
I was like I would really like to do that that sounds awesome so he’s like
well can you come up with we needed like 30 grand 32 grand to come up with I was
like I didn’t have it and I was like what I will find I will make sure that I
get it and we’ll have it don’t worry so we negotiated the price a little bit
better and started going through the loan process which I’ve never been
through before and that’s essentially how the first deal transpired fantastic
and really fascinating story so how much did you guys take that one down for and
how much did you because you said you flipped that one was the asset price
okay so it was a 13 month old which in that time we did quite a few things
it started at 289 was the list price we ended up getting it for 252 5 which is
about 35 K or so adore it was 7 units all concrete block individually metered
electric and really a good good asset so then what we did the units didn’t need
any cosmetic stuff they were good to go I can get market rent there was a lot of
month-to-month leases so day one I raced France to what I knew the market was
which was 750 these are all one bedrooms and what I did in that building was I
got all new tenants every one paid 750 throughout the time I
converted the water meters to sub leaders like individual water meters and
then when I leased it with new tenants I put all the new tenants are paying all
the utilities so it’s a true net 750 and that cuts $600 a month and expenses off
of the expense sheet yeah so and the crazy thing is what people don’t
understand is a lot of these plumbing companies that do these water meter
conversions they offer their own financing and it’s 0% for 12 months so I
literally pay to borrow the money from the savings in the rent roll to do the
metering of the water so it literally cost me nothing by the grand scheme of
things Wow but as you know my noi increased spa you know seven thousand dollars a year
which is pretty significant on the equity side fantastic
so we did we flipped it we held it for a year so we went to capital gains
taxation instead of ordinary income and we flipped it out at 377 500 net to
seller so we didn’t pay any closing costs or anything and we can’t float
about three thousand a month net cash after debt services every month what we
held that’s that fun size to do congratulations again log and that’s a
really really good deal it was it was good yeah thank you thank you so much I
appreciate that it there was a lot of blood sweat and tears in that over you
know managing and you know dealing with some crazy tenon so I had some some drug
addict issue to things to deal with so but it but I’ve learned so so much tons
so real quickly you had a partner right on this Gail there’s a lot of talk about
partnerships yeah I mean this was almost like a unique situation but how do you
deal with a partner I don’t really want to say how do you find a partner because
you kind of told us how you know as far as you came about well how did
you manage our relationship it was crazy right like I don’t know this might be
like one of my hidden skills I’m pretty good at relationships but I think the
biggest thing is in my opinion and this partner came to me afterwards and said
man I have had a handful of partners I have never enjoyed a partnership as much
as I’ve enjoyed this one and not once did we have any arguments didn’t we say
you know this person’s doing more than the other person
the reality is two things one person has good skills play to those skills and the
other person has good skills that person does they’re good skills and the second
thing is just realized it’s about getting the task done it’s not about who
does it or who’s doing more or less it’s about making progress and getting
something done in a timely manner you both both of you have mutual benefit by
things getting done and progressing and there’s no sense in figuring out who’s
doing more or less like you’re both in it together type of thing so that was
the biggest thing for me he handled all the books all of the cashflow making
sure all the vendors were paid which is stuff I’m typically really bad at and I
handled going they’re coordinating vendors releasing all the units signing
all the new leases making sure they get turned over and making sure the tenants
pay and the money comes in which those are things I’m really good at and he’s
really good at all the backend stuff so it works out really really great
fantastic so you did an awesome awesome job on
this fast multi-family deal know that open they can say that so I guess you
caught the bug right the more it’s a family bug that I hated I said I suffer
from – so I could talk to you later once you see that value you can pick up
what do you guys from driving a no why would you like to speak like no changing
these little things I mean do not I’d have to flip a hundred hats
a year you know what I’m saying it and he’s name his head smiling like don’t
let him know shoes so you cut the bucket than you did your second dude your
second what I family do yeah I bought the second one before I had finished
selling the first one um and I got I got into that one for nobody the first one I
got into for 10 grand of my own cash I borrowed a private loan from one of my
other flipper investors who was one of my best mentors he gave me the other 22
grand and then I paid him back with the cash flow and something like that
um and then my big clip was like resold now the second team that guy that lent
me the 22 grand he put up all the money on the 20 unit I
found the deal and negotiated the deal and then he put up all the money and
then I run the whole entire thing a busy so I was kind of able to leverage the
first deal and say listen here’s what I did
I know what I’m doing here’s the value I created and now let me present you an
option where you can put some money here and this is what I think we can make and
he was like yeah and trust you you take me back
I trust your judgment you know what you’re doing here you go and we’re 50/50
partners on that deal she’s kind of the capital guy and I’m kind of the run the
deal yeah um tastic fantastic yes I’m you
guys – I used to already known – that 20 or have you flipped that yeah yeah so we
closed on that in like mid November of last year and I had eight tenants I have
18 tenants now and so I have two that are getting renovated this weekend will
be filled by March 1st and then it’ll be fully occupied fantastic fantastic so
definitely definitely definitely dwelling into the quick into the quick
rounds I would love to keep hearing your stories just amazing very inspiring so
these are gonna be quick questions quick answers you ready sir let’s do it
first question what makes you log and unique what is that differentiating
factor that separates you from the next guy or the next girl Wow Wow I think I
believe joy like great connections with people very original I’m not like
textbook at all very goofy and weird so it’s kind of kind of unique being an
investment space I love it I love you I mean you reached out to me on Instagram
and you know it’s really nice to connect and yeah so you definitely have that
desk you I love that next question yeah next race and what was the last book
that you read I’m almost the one nugget the one thing you learn from that book stop worrying and start it’s a classic
it’s an old book one the one nugget I really like live your life in daily
compartments you can only live each single day even down to the minute at
the moment it’s just you know we live so much of the future and sometimes we live
in the past it’s always great to remind yourself that like the only thing you
need to conquer is one day it is I love it I haven’t had up that book thank you
for that it’s a mental thing it’s not a funny book it’s not a you know success
book it’s literally just about like the clarity of your thoughts and you don’t
get worried about stuff how to eliminate that
I love it last question so you’ve got your 20 unit dealers you’re flipping
like 50 houses you know I’ve seen your Instagram page you’ve got a bunch of
stuff going on what do you do for fun what do I do for fun Beyonce now congratulations that is HUGE and so I relaxed the time with her I
have a dog a lot spent time with my dog and really liked me a good food like
foodie stuff you know like that and I’m an artist so I like to do you know
painting and drawing type stuff so before I let you go look and if there’s
a dwell listener listening to this and like wow I like this local guy like I
want to connect with located where you know where can people go to find you
where your most active done most active on Instagram for sure you can follow me
at Mogul in the making I try and document pretty much the journey of what
meme you kind of face on a daily basis so you know trying to go big and buy
these things as a real estate entrepreneur and mogul so it’s an
entertaining journey which I’m sure you’re familiar with so definitely check
it out awesome well Logan it’s been an absolute
pleasure and learnt a ton from you I think it’s really cool what you’re doing
in that space definitely we’ll be watching your story and seeing how
things turn out so thank you so much I really appreciate your time thank you so
much for the opportunity is I really appreciate it for real

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