Start Your Real Estate Investing Business with $30 w/ David Nelson | Fresh Picked Fridays #6

Start Your Real Estate Investing Business with $30 w/ David Nelson | Fresh Picked Fridays #6


hey what’s up everybody this is Andrew
Engel with Fresh Picked Leads we’re the lead generation company for Wisconsin
real estate investors and small businesses and today we are having our
sixth episode of Fresh Picked Fridays and again this video series is really
intended to bring in a local entrepreneur talk to them a bit about
what they’re doing to get their next customer close the next deal you know
really what are they doing to continue to grow and really framing these
conversations anywhere between lead generation through closing deals and if
you haven’t checked out our previous videos we’ll link to those but today we
would have with us David Nelson from Appleton Wisconsin he is a real estate
investor and someone I wanted to get on the show since since fresh pick Friday
started so I really want to do this to really have him share his story I think
it’s a great one but we’ll get into it but David thanks so much for joining us
how are you doing today yeah absolutely so um like I was saying I really wanted
to get you on the show to talk a bit about your story cuz I think your story
resonates with a lot of people and I think it is something that’s gonna be
really great for people who are like just getting started or just got caught
the real estate bug or it may even resonate with people who you know have
been there you know and I really want to emphasize kind of like what it’s like to
get started in this business particularly when you have no money so
jumping into this let’s let’s start with what are you doing today and and where
has where is your business current state well I am doing flips
I’m wholesaling deals I’m also a host in the Green Bay Wisconsin rentals
this is completes August will complete the fourth full year of real estate
investing full time for me and I know I didn’t have any
business education or any kind of organizational skills to speak of when I
started this thing so I’ve been I don’t know if I have advanced as far as some
people that have been doing it for four years but I think I’ve made a
considerable change from when I first started and business for you know yes it
is alright I since I first started I went into this thing
full throttle immersed myself in the education and daily practice of it okay
so let’s talk a bit about really what your origin story is you know where did
you come from and what led up to that that change where you’re going I’m gonna
leave this old lifestyle and completely immerse myself in this new one
well you know if you want to go way back my father was a business owner himself
and in construction and mechanical trades so I was exposed to that in the
beginning you know throughout growing up but in my early twenties he and I you
know started going separate ways I wanted to do my own individual thing and
a buddy had a bar and grill and so I started cooking there and I found that I
enjoyed it I was good at it so I just continued to do that and um I did that
for 25 years worked my way up through you know I was running a restaurant at
the end a couple of times those those jobs don’t have high turnover because
there’s no real benefits besides you know being able to eat and drink at the
restaurant you know the that kind of a job consumes your life you have lots of
hours there when of people are celebrating life holidays other life events your you’re working to
provide them with you know with the food for the event or whatever so all nights
weekends and holidays I was working and it wasn’t much of a life eventually I
was when I quit I was 46 years old working for a guy that was 26 years old
at 4 1250 an hour and you know a portion of that went to my health benefits
because I was working for Lawrence University at the time but I was a grill
cook and we were doing 800 people I’d you know we’re feeding 800 people a day
and it was just super high paced and finally you know they were adding on
enough more work on top of what I was already doing and I was you know I just
didn’t have any more to give and I just decided I was gonna quit I you know
there’s some some background with the different programs that I saw what
inspired me a friend had a Dean grazi OC program that he paid $25,000 for that he
still has not done one wholesale deal with no Jesus four years later so anyway
I went to visit him he said I got this great new program come check it out I
went there I was like I’m quitting my job I’ll move in with you we’re gonna do
this thing we’re gonna kick ass and he started getting nervous and backpedaling
and I went home quit my job and started reading everything I could on the
internet about it and made it happen Wow it’s a dress but awesome that says massive action
ready yes that’s a key point in this this discussion is truly massive action
for anyone who hasn’t started yet that will come up a lot so let’s let’s go
from here where did you go from here did you find a mentor did you go to you know
did you pay somebody to learn something like what was your next step there well
all the information that was available to me on the Internet
suggested a few things go to a RIA meeting a real estate investors meeting
in your local area get a mentor do something just do something go do it
don’t think about it I’m pretty good at that doing and not thinking no so I did
that I went to a local RIA here in well at the time I was in Appleton and I saw
this guy says no we’re in the corner and he just had some air about him I I was a
I was a pretty shy guy and I had you know I didn’t speak at the meeting or
anything I barely talked to anybody else but I did talk to this guy I heard him
say a few things I assumed rightly that he knew what he was talking about and I
asked him for his phone number and I called him and it just you know he
started mentoring me okay so you found someone that you want to mentor you you
got their phone number you call him what’s what’s next call Jason up and you
know I had already done a lot of the I’d already a self-educated and looking up
properties on the tax rolls I have a analytical mind so I was I would I was
reverse engineering myths I knew I needed a deal and to get a deal
I needed you know so I backwards engineered it I need to find the people
that are trying to are motivated to sell how do I do that I put outside so I was
I had already learned the things that I the basic things that I needed to do that would help me find the deal and so
you know Jason tested me too he he would like throw me out a lead or he’d say it
send me an address and he’d say look this up and in a half-hour I’d have all
the information on the property as much as anyone could find about the owner um and later you know a couple of years
down the road he would say the bad impressed him you know these know you
deal with some people and they’re just dabbling in this or they you know aren’t
committed and they they we do is just ask questions that they don’t try to
find the answers on their own and I think that’s a really good point that
you bring up is you know people when they first get into this business they
they hear I need a mentor I need a mentor so that I can be successful and
it sounds like what it really is is it’s someone to guide you and the the the
crux of it is you need to do all the work you know if if you’re a mentor is
not going to make you successful if you aren’t putting in the effort and the
time to build your own business they’re not going to build it for you right
that’s exactly correct and not only should they not be telling
you everything to do all the information they’re not a resource for all that
information you know they could they could put boundaries
I’m not sure I’ll say this but they can curtail your creativity and slow you
down and you might be able to find some answer some new what do you yours within
the box that they are providing right and if they don’t give you a box then
you can what’s that word that means come up with something new
innovate sure you can innovate in the field and come up with maybe something
nobody’s ever thought of doing yeah I love that um so then from here let’s
talk about this so you quit your job you have how much money at this point well I
think I was broke and I was waiting on my next $253 check I remember that
number distinctly it was a full week or I think it was my last check so it
wasn’t a full two-week period I think it was just I quit right in the middle of
the pay period so it was one week that’s how I know how much I was making per
week it’s freaking ridiculous that’s you know no overtime crazy okay
it’s okay though you are waiting on two hundred fifty thousand or two hundred
fifty-three dollars and you know you are starting off looking to get a deal and
normally you know more like established investors they are marketing and they’re
putting dollars towards marketing so you have two or fifty-three dollars to live
off of what are you doing for marketing like you you had to resort to free or
very low cost marketing is that right that is absolutely correct
so the first marketing tool that beginning investors should should get
our this this cars can get 500 of them for $10
flute vistaprint if you can find them anywhere else cheaper do it it is an
inexpensive way to hand that card to every person you meet because every
person potentially knows or has someone in their family that is getting to a
point where they can manage their property anymore or have to sell it for
any some other reasons so that was one of the critical first marketing tools
that I used was I would you know I would say this to everybody I met my name is
you know I would introduce myself or whatever in conversation I wouldn’t even
introduce myself I would say you know what I’m a real estate investor and I
don’t want to get pitchy on your anything but I pay referrals for anyone
that’s able to bring me a house that I can close off 100 are a thousand dollars
in cash and I pay it as soon as I close on the property and I got leads that way
I have gotten deals that way so there was also I couldn’t afford bandit signs
at the beginning going to go right into each individual one absolutely okay I
couldn’t afford bandit signs it was like it was a hundred and ninety-nine dollars
or $99 450 I think it was at the time and I was came to Jason he’s like I are
you doing bandit signs I’m like no I can’t afford him and he says well he
gave me a bunch of different options you can partner with another person get a
Google number they both have access to partner with somebody to go in on a
starter batch of bandit signs but he said shit for 20 bucks you can get you
can go down to Michael’s craft shop get one of those trifold
even have that thing right over here in the garage get a trifold presentation
cardboard thing and write on it with a big old fat sharpie we buy houses and he
says I want you to go home and do that and go on the corner of highway 41 and
Wisconsin Street on the on-ramp there and stand out there for two hours and
get somebody to take a picture of you as they drive by and send me text me a
picture of you doing it and there’s a picture out on face with something we’re
on the be doing that because he immediately posted that much to my
chagrin very cool very cool yeah I was gonna run over there and grab that thing
but let me hold Asik yeah so I I keep this because you know it shows me where
I have come from you know anyway that’s sharpie no I was I had to elevate that
shit man I got some yellow in green spray paint and some stencils for my
twenty dollars okay so that that cost you twenty dollars I kicked it up a
notch I think I even had like a couple of bucks left over for a 20 ounce coke
or something okay so all right so we’re at $30 now we got 10 minutes for the
business cards and then 20 dollars for and right sign which actually could have
cost you much less than $20 if you wouldn’t have gone all out with the
stencils and spray-paint yeah that stencil kit was like $8.99 or yanks all
right so you you do those two things anything anything else Craigslist
I posted on Craigslist there was any online ad posting service that you can
think of there was back page garage sale all these obscure things that I searched
out I posted on all of those too now there’s hundreds more let’s just
given all of those things you’re doing you’re you’re just networking you are
going out and just showing up your sign hoping people will drive by call it and
you’re using the internet to kind of free market so with all of that how many
hours a day where you put in because you quit your job now so how many hours
would you say you’re putting in each day just trying to find a deal I was
probably doing 40 hours a week you know I’d say four days a week I was doing
some serious morning till night activity but you know I wasn’t killing myself by
any means I don’t want anybody I got I want to be perfectly at you know honest
on this thing I was screwing off a lot – okay so how long did it exactly take
from the time you quit your job to actually landing your first deal three
months if you don’t mind me asking how much did you make on that deal well
that’s an interesting question – because ultimately I made $15,000 I made $10,000
off of the whole sale and then I contracted with the investor that bought
the deal from me – general contract the you know to manage a project and I
wasn’t a contractor at that time but I eventually I ended up getting
contractor’s license throughout this journey as well so he paid me another
five grand out of the profits to manage the project so you now have little ten
thousand dollars of spending money oh my god
yeah what so like at that point you have money to basically live but are you now
putting money into your business into marketing yes I am now paying my phone
bill and you know $10,000 is a stack of hundreds like this tall it’s 100 $100
bills yeah anyway yes so I started I you know I went all out
I bought some bandit signs a banner I bought some you know I started doing
some direct mail and yeah I got some t-shirts you know all the ridiculousness
I got one of those vinyl wraps for my 1993 Toyota 4runner with two hundred and
fifty five thousand miles on it or something it was great so at this point
you’re now putting money into your marketing are you continuing to do the
free marketing techniques that you started with or are you dropping those
nope well I wasn’t walking out on the off-ramp to the highway anymore
actually paid a guy so throughout this I always think about those people that
maybe have difficulty getting work or being employable or whatever I try to
help those people out in my business I try to give a job to people from the
local shelter I have taken people out of the
shelters and put them to work you know doing demo or cleanup or walking around
with my sides I’ve paid these guys to wear my signs on their on their body and
walk up and down busy streets in my city so you are used you have kept that
original like hustle marketing technique you’ve just outsource it yeah that’s I
did not expect that that’s great I started paying people to put out my
bandit signs for me to eventually I started you know the first year that I
was doing minute sighs I went from making $22,000 a year the previous year
to 120 that first year and so I took advantage of any opportunity that I
could to free up the time for me to do the things that that I’m really good at
you know talking to sellers there’s a story it you know there’s a huge story
about how I learned how to ask to me in repairs and stuff to I did it’s really
super organically a lot of people use some you know five dollars per square
foot for a light rehab 20 dollars per square foot for a heavy rehab I actually
went out and talked it or made calls to the contractors to find out what they
charge I called you know tens 20 in 10 or 20 of each each field 10 or 20 in
each field you know flooring guys roofing guys siding guys I went to Home
Depot to memorize what the cost of materials are drywall siding roofing you
know a vanities shower surrounds so I spent a lot of time doing those things
as well okay if you could go back here this is gonna
be the million dollar question if you could go back to where you started in
the exact same position but with all the knowledge you have now would you build
your diff your business differently I don’t know if I would go back and I mean
if I went back with everything I know now if I would do those things are spend
more time in those things I think I would find another solution forum I
would develop a team sooner or something you know I would learn how to create a
team that’s still a challenge for me is teamplay hiring and outsourcing the
things that I need someone else to do things that I’m not good at those things
the CRM thing the follow-up thing cuz I still really don’t do those things and I
would make it a priority to to find out how to team build and how to hire
because that’s that’s what I’m doing now I’m still not doing that stuff but I’m
finding out the best solution to getting those things ok so it sounds like what
you would do differently is you would focus on what you’re good at and
outsource the rest sooner than later right all right very cool ok so just
wrapping up here then so what if you could give one piece of advice to
somebody who is just getting started they just got bit by a real estate bug
you wanting want to start finding detail deep deals what would you give to them
as as some advice I think it was Warren Buffett said something about action is
like interest or compound interest the more you put in the more you get out or
something like that so I would say do something now
anybody can do this you know if you know I don’t have a college education I don’t
come from a good family or any of those things not a smart guy basically well maybe I’m
a smart guy but you know I’m not like strange and uniquely intelligent or
anything I just did I just took action in spite of the fear so you have to have
a little bit of courage so just go after it anybody can do this if you do it
that’s the key word as faction excellent Dave this has been awesome if anyone
wants to connect with you learn more about you where can they do that
so at crazy home buyer on Facebook no you can just look up David Nelson or
WWWE homebuyers calm all right perfect well thanks again Dave this is awesome
loved it we’ll link to your profiles and websites
below but thanks for joining us today that was awesome Olivia thanks Andrew
have a good day

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