David:
Welcome back to another episode of the Discount Property Investor podcast. I am your host David Dodge. Today I have an awesome podcast for you all. I have on one of my students who is crushing the whole sailing game, his name is Aaron Eller. Aaron is just doing awesome stuff so I wanted to invite him on today to talk a little bit about some of the deals that he's done, talk about this most recent deal that he just closed last week that made him almost $30,000, and really just kind of pick his brain a little bit. Aaron is a member of the Discount Property Investor mastermind and he again is brushing it so having him on here today is gonna provide you all with a ton of value. Aaron, welcome to the show brother, how are you man doing good?
Aaron:
I just wanna thank you for having me on and you know it's been a been amazing to learn from you and just get into the world of wholesale.
David:
Well hell yeah man, well I love having you in the group, you are one of my favorite students because you take action and you know it's really really fun working with you because we tell you or give you guidance on something and then we talk to you a couple days later and you've done a bunch of that stuff, you're not just you know here to get the knowledge and that's okay for those who are but again I love working with you man so it's a it's a mutual feeling. Aaron, do us do the audience a favor if you don't mind and give us a quick little intro, you know who is Aaron Eller?
Aaron:
Yeah so I mean I'm born and raised here in Saint Louis, Missouri about you know now out of Saint Louis went still and you know grow up pretty typical kind of middle class suburbs life if you know went to college and stuff you know always been told you know go to college get a job you know safe for retirement you know kind of just live that life and you know I did it I went to I was going to missou and stuff I was a finance intern for a big company and everything and you know kind of got the feel of the corporate world and I've always worked a lot since I was 16 and you know I've been fascinated with you know trying to make more money you know just move up in the world and you know after kind of seeing the corporate world and seeing you know being around a lot of other entrepreneurs and businessmen I knew that you know it's just kind of like you know that climbing the corporate ladder would be a lot harder than just going out and you know kind of starting a business I mean obviously it's I'm not saying it's it's easy but it's definitely possible.And you know, kind of being around a lot of my bosses and the company, you know seeing them, you know how hard they worked over, you know 20, 30 years well, I mean if I do that in business, I mean I'd probably be a lot further along, so kind of was you know, inch always interested in real estate. I actually worked with a couple realtors, you know before on some different projects and, you know knew a little bit, but didn't really know much about wholesaling or kind of investing, and I was actually looking at maybe buying a rental and looking at some stuff on the market, you know, there's not really too many good deals on the market so, you know, I didn't end up buying any rental because nothing was really a good deal and it really makes sense that I could find and then obviously that's how I kind of doing more research on how to find a better deal is how I got familiar with wholesaling and just started it myself, decided to, you know, take action and, you know I mean what, what is there to lose really at the end of the day, I mean you know if I, you know, if you lose kind of lose or fail in business I mean you're, you know you're pretty much in the same position if you didn't really take the risk anyway, so just knew that had had to just take action and and get going and you know get surrounded by well, like minded people and people who've done it who can help you and teach you, you know just like David, you know being able to be around him and learn from him and its group is just been, you know amazing.
David: Dude we love having you man, awesome intro how, how old are you Aaron?
Aaron: I'm I'm 21 years old.
David: 21 years old man, you are super young which is so awesome, but it just goes to show you that you can do this at any age I'm 39, I feel like an old man up here um, but I got a young soul man.
Aaron: yeah no, you're definitely a whole lot more active and lively than a lot of other people.
David: so I love it man, well thank you for the kind words, 21 years old amazing, what were you doing before you got into real estate?
Aaron: yeah so um, I had a couple different jobs, you know right when I was 16, but my main job that I had since I was 16 was serving at Olive Garden, I mean it was good, I love serving um, you know kind of it taught me a lot, it taught me you know the harder I work the more money I made, you know the more tables I can take, the more tips I made and stuff, so I mean, I was making good money you know, I was being able to make you know around $1,000 a week you know, working four or five days, you know pretty consistently, I mean I, I worked pretty hard and, you know the heart, the more my back hurt when I left, the more money I made and, you know I mean it, it was good because you know, I had the time I had the energy, and I didn't mind you know, putting in the work um, and then also it taught me, you know that, you know that the corporate world, you know it doesn't matter how hard of a worker you are, how good of a worker you are, you know, you're replaceable and they really don't care about you, so I mean, those two things really you know, taught me a lot and, you know also, you know making money and stacking some money up to be able to invest in you know, real estate and business you know, investing in you know education, you know and and masterminds and stuff, you know joining groups is definitely, you know that the, probably the easiest way to get, get started amen.
David: absolutely man, I've been in so many groups and masterminds on men, multiple masterminds currently, I mean it's the best money, spent hundreds of thousands of dollars on education, probably two or three times what I've spent going, to college and it's worth it, it's worth every penny of it man, so I hundred percent agree with you there, how long have you been in the program, how long you been working with me, and been in the mastermind?
Aaron: yeah so um, I guess a few months now, I've I've been started with you or um, you know I met you a few months ago, and then you kind of joined after that, and you know it's been good, you know I was able to do it you know, a couple deals kind of before and then you know, using the knowledge and everything that I Learned from you and, you know get bigger deals and you know, more deal flow coming into and and you know, just keep building it up.
David: I love it man so couple months um, how much did you make on your most recent deal?
Aaron: yeah so that most recent deal I made just um, I made a little under 30,000, so 29,125 I think to be exact.
David: so 29,000 in change just under 30 grand, that's amazing how many deals have you done total in just a couple of months time?
Aaron: yeah so I think so that one closed last Wednesday and then I think that was my 10th or 11th deal because um I think I told you I, I had that ninth deal before and then I closed uh one Monday and then I closed the I closed one Monday for 5,000 and then I closed the one for 29,000 that Wednesday so so 35 grand last week.
David: yeah woo baby that is awesome that is awesome alright here's what I wanna do on this podcast, I wanna break down that most recent deal all right I also wanna mention really quickly guys, you don't you can do this at any age like Aaron here, um you don't have to spend months and months, or years and years at this, you can learn how to do this in just a few short months, or even in a few short weeks in some cases, Aaron's only been at this a few months, and he's done 10 or 11 deals, um he made 35 grand last week, and he's doing several deals each and every month, um and again, this is not a difficult business to get into.
Aaron: You just gotta have some drive and take some action, have the hustle and Aaron definitely has that. So I'm just really happy to have him on the show today. Aaron, I really wanna break down this most recent deal. You know, most people could really use $30,000 in their life right now. I really don't know anybody that would turn away a $30,000 paycheck, and that's what you essentially got last week for buying and wholesaling real estate. And I just love to hear the breakdown of this deal. So let's start with, you know, where the lead came from, how you worked the lead, what were the steps for you to get the property under contract, you know what you do next, and then ultimately how did you get paid.
Aaron: Yeah, so this lead came out, I was reaching out to it. It actually came from an agent on this lead, but uh, we're kind of working direct to seller and we had some pickups along the way on the deal but you know, it's just making sure, you know, just keep working at it and you know, get it to the closing table and when that happens you know, it's a done deal. So, I got this lead came in from a person sending me the lead as I was doing outreach to them, asking if they had anything they're wanting to sell and stuff. So, I got this lead, generally know what to do. She was trying to help the seller out so um, so I offered you know, pay her commission or finders fee for the deal and then, you know, just kind of worked on it.
David: One other investor, and I didn't mean to interrupt you, but was it listed? No? No okay. So, an agent had the lead and then she connected them?
Aaron: Yeah, so the agent wasn't even a listing agent on the deal. So when I first got it, she was just trying to help the seller out, you know, she didn't really know what to do with it 'cause it was completely gutted. It was sitting vacant for 10 years so um, you know, it's a rough property obviously, you know, the only person that's gonna buy it is an investor, you know when it's in that condition. So, I was like yeah, I'd love to take a look at it, you know, went through everything, looked at some numbers, you know, there were some comps in the area, you know, some more ones but there weren't too many, you know, this was one of the bigger houses in the area, so there were some good comps for higher and you know, I started talking to them, you know, kind of finding out their motivation, you know why they're needing to sell, why they're wanting to sell and for this particular reason, you know, she bought it 10 years ago, it's been gutted ever since, she was, you know, her plan was to kind of rehab it and then, you know, be able to live in one unit, rent out the other unit 'cause it was a large duplex and you know, downtown Saint Louis area for people who aren't familiar. And so, obviously, that never really happened, you know, she ran into, she probably didn't have, it seemed like she didn't have the money to, you know, be able to rehab it because, you know, a project this big was today, you know, my rehab estimate was probably, you know, at least 150 if not, you know, way more, a hundred fifty thousand depending on the investor and what they're kind of wanting to do to it, so she just kind of wanted to sell it 'cause if she's not gonna be able to fix it all the way up, there's not really much you can do when it's, you know, down to the studs at this point besides kind of just, you know, selling it.
David: Yeah, so yeah.
Aaron: So, you know, I was talking to her, so I found out her motivation, you know, which is always kind of important when talking to them, you know, why, how can we make this win-win, what is the reason for wanting to sell, and then so I found that out and then kind of, you know, the price, like what would make this a win-win, what would you know, you want? So there was another investor that was offering, you know, around 200,000 for the house and you know, so, I offered her 230,000, you know, she liked it, you know, we're trying to get it under contract and stuff and then that's when, you know, there was, you know, I sent over my contract for that and you know, I was kind of dealing with like I said this, this was a, you know, different situation so it was an agent that sent me the lead but she was not representing the seller um, I was kind of talking to both the seller and like, kind of through the agent but you know, just she wasn't really brokering the deal or anything.
David: She wasn't familiar with, you know, that much relationship that she had. I get it, that makes perfect sense yeah.
Aaron: Yeah.
David: So, and did you go meet this woman ever at the property?
Aaron: No, no. I never met her.
David: You never even went to the property either?
Aaron: Not on this one, no.
David: So, I was out, you didn't go to the property and you didn't meet the seller. This is all done over the phone. So, this is essentially a virtual deal.
Aaron:
even though you live what 45 minutes away from this place, yeah so I was out of town at that time and stuff so but then I'm more back in town so you know kind of when I was first getting this under got the lead and was under contract I was gonna be back but so I was already under contract by the time I was back in town so I didn't need to do that and you know if you are virtual and stuff you know obviously it helps being in person you know talking to the sellers and everything and and as David teaches and everything but you know if you are virtual you know just you know talk to the you know what my partners are gonna come by and look at it my contractors you know you know just explain the situation but so we're able to do that and then you know so there was some problems with with the agent because you know the agent wasn't on the deal but then she was still seeing what was going on so she wasn't you know as familiar with investors or you know off market deals that you know don't have an agent involved so you know the contract you know wasn't a realtor contract because I'm not a realtor or anything so you know there's some hiccup there you know just had a you know you just just have to feel the objections and you know get it under contract so we're able to get past all that so actually um we I ended up telling the agent like why don't you just you know represent her out you know I'll pay the commission and stuff on the deal so you know I I I told her from the beginning you know since it was a great deal you know I'm happy to pay you a finders here whatever so it was also the easiest way to pay her a commission since you know technically agents aren't you know supposed to get finer so did the seller pay the the the agent commissions then at closing?
Aaron:
no I did I did so it came out of so so it was and in the end it was a 35 thousand dollar um assignment at 2 thirty five thousand dollar purchase price and then the 2.5% commission um came straight out you know the title company does all that so I went home with a check for 29,100 you know after the paying off the commission got it so the agent got paid out of your assignment you bought it for 2:30 what you sell it for so so yeah so I bought it for 2:35 so I was originally offering 2:30 but you know I was trying to get it under contract because I knew I figured that the other investor probably was willing to come up.
Aaron: You know he was trying to do a get a good deal himself, which you know he should um, and then you know so I was able to, you know come up get it for 2:35 and then so yeah, so I sent it around a little bit. I had um one person that was very interested, that she actually owns, you know four very similar properties in the neighborhood so, so so I was looking at uh comps, you know for sold, you know kind of flip properties that were similar and you know I looked up on tax records to see who owned it and I saw that, you know uh Davis Property Group, you know owned it and stuff so I, you know I woke them up. I just actually called the the number on Google and uh she answered and she's the owner of the of the group and you know she was like oh very much interested, she wanted to look at it right away. It was vacant on lockbox so she was able to, you know go right away and view it and you know she she offered me um, you know two 70 so I had it for 2:35 so you know minus the commission so I was gonna make, you know um like 30,000 and you know she she wanted to get it, you know locked up pretty quick so obviously you know maybe I probably could have got, you know more but you know you know having a done deal is always a done deal so you know I was like you I took her deal cause I had a couple other people that went and viewed it and they were you know quite a bit lower as well so um so so we went under contracts in her uh an assignment contract and then you know she was able to I actually got her to pay you know $5,000 you know non refundable earnest money so if she didn't perform on the deal or whatever I would still you know get you know $5,000 of her earnest money so you know that was all good um she herself you know owns a lot of property but you know obviously she can wholesale as well and does that so she was sending it around and so she actually assigned it to New Western which is a bigger kind of disco hub in the area and so they actually assigned it to an end buyer for looks like a did they bought it from her for two 90 so so she made 20 grand I made 30 grand so you know that's that's what I mean you know at all these deals even if you're JV and there can still be you know large profits available in certain deals you know just depends on the deal so you know obviously I was happy making 30 grand and you know...
David: So I didn't realize that that was I think you had mentioned that to me but I didn't realize that there was a joint venture with essentially multiple people involved in the deal so here's what I'm hearing though regardless of all that multiple wins the seller the deal and got her money back out win you came in and helped her get that done and made 30 grand win there was an agent on the deal that essentially connected you with her they made 5,000 win your buyer probably would have closed on it if they hadn't found a buyer to pay them over over you know 20 grand over there which is price they made 20 grand win and then there was another company that essentially assisted another buyer both of them probably well not probably both of them created wins that company made a little bit of money right and then the end buyer got a deal that they can then fix up and sell for a profit or fix up and rent out so like five or six wins all across the board everybody was happy everybody won what an awesome deal how long did that deal take you from start to finish
Aaron: So um I believe it was we were at like a less than 30 day close at first and then we uh pushed it so we're originally gonna close like March 31st and then we pushed it back till April 10th so it may be like 35 days or so total um from start to finish I I think it maybe took me I was trying to get it under contract right away because I knew there was another investor on the deal so I think it only you know I was able to get it under contract within kind of three days and then so from the window we came into you know when it closed and everyone got their checks you know it was probably 30 or 35 days
David: Man that is awesome and that's about normal from start to finish about you know month to give or take um so you write in line there and again everybody won so three days to get the deal under contract you weren't even in town you never met the seller you never even went to the property on this one um how many different conversations did you have with the seller and I know there was an agent in the beginning as well um but how many different conversations did you have from the start from the very beginning in to the point to where you were to get the you know the contract signed with them
Aaron: Yeah so you know it's you know it always having to follow up and yeah I mean there was quite a bit of conversations but you know obviously I mean you know when you're making good money you know oh yeah that's whole business so you know those so that you should be uh excited about those conversations everything and so I mean when I got the lead you know obviously talking you know for intro conversation you know what's kind of the situation what's the house like you know she she actually sent me pictures right you know right away and and it was already on lockbox or it wasn't on lockbox but she put a lockbox on there so you know the agent kind of from the beginning you know made the made it easy you know took care of everything you know put it on lockbox pictures uh you know communicated fine and then you know I was like you know offered 2:30 and um you know there's this are kind of said that would be fine and everything and then and you know we didn't really wanna sign a contract right away though and so you know I was kind of like well you know what you know had another conversation with you know her and the AJ kind of what can we do to you know get this under contract and you know have this be a win win so I mean you know I offered her what she wanted you know she said she wanted 2:30 you know kind of offered her what she wanted I mean she had another offer at like 200 and and then so I you know I I was able to come up a little bit and just get get it actually under contract at 2:35 so we were able to do that and then from there you know just send it out you know I um when I I said I when I sent out to you know several people and stuff that I thought would be interested you know that never really went through you know my Hope ires list or you know putting it in Facebook groups or anything really but then uh you know the the one the other party that I sold it to was was interested so went under contract with her you know followed up with her obviously I mean I I I've done multiple deals with you know new western myself so I mean I kind of see that you know get sent around which is you know fine like you know I think you know uh the pro one of the problems with you know agency kind of see is you know they like to be in control and stuff
but I mean if you're making 30 grand and you know as long as that you you're confident that deals gonna go through you know it doesn't really matter I don't I don't really care what they do with the deal or the contract so I I mean I just you know had a conversation with them like you know it if you can't wholesale it or whatever are you still good to go through like is this a done deal and you know that's why I paid our portable too yeah yeah yeah so I mean either way I was gonna get that and you know she she she was like yeah you know we'll buy it either way so then it's you know it's kind of like well you know why why would I care what they do with it you know it's clearly in contract you know um the contracts are assignable you know unless otherwise really said not um so you know she she was she assigned it you know I kind of saw that and then you know just worked and you know we had to switch we had to get a few amendments to switch some title company since the parties you know kind of change she I originally had it under you know one title company and then you know when I gave it to that buyer she she wanted to use her title company and then you know New Western had to use their title company
David:
so we had a couple eventually right yeah yeah
Aaron:
so so new western always double closes so you know my assignment yeah yeah so so you know and we had a you know so I had two amendments with the seller you know changing the date and you know title companies you know two different title companies twice that we had to change it to but we were able to you know work everything out and just explain it to the seller I mean you know we're paying all closing costs um you know we're we're getting this deal sold so you know the title company really shouldn't make a difference to them
David:
you know just explaining that like we're we're paying everything so you know we wanna use partners wanna use this other company that's all you gotta say yeah yeah so you know
Aaron:
obviously when you have to do change it twice it can be maybe a little harder you know kind of be like oh what's kind of all the switch back but just kind of say all things change our you know maybe our exit strategy kind of you know switch I I'm working with a different partner he has to use that title company and you know just just can generally you know if the seller gets paid you know at the end and the deal goes through generally that's kind of what they want you know if they're wanting to sell at a discount you know discount property investor well if they're wanting to sell you know at a discount generally they want the property to go through if there's an agent involved generally I mean most agents are concerned with getting paid and you know that's their whole business so generally if you have those two things you know usually you can you know convince them to do you know get everything else passed and you know make sure there's no problems because you know the agents gonna get paid the sellers gonna get their money the house is gonna be sold so everyone's happy
David
everyone's happy I love it how much earnest money did you put down with the seller
Aaron:
yeah so um I put down $1,000 um it was a little more since there was an agent involved um you know I knew it was a great deal um I I I really I mean I didn't know how high I was gonna be able to sell it or whatever and you know I I didn't do too much negotiations with the with the buyer that I sold it to because you know she was my higher software and you know I I was I was making good money there anyway but um you know so I I knew it was a was a good deal I I thought pretty confidently that I was gonna be able to sell it no matter what at some sort of profit so um you know I was I was pretty fine with you know maybe putting down a little more cause you know the agent wasn't as familiar with kind of you know then the investor world but you know a lot of if you're direct to seller then you know you only have put down $100 or so and you know it's generally fine yeah
David:
hey a thousand dollars is you know a good amount of earnest money to let people know that you're serious and that's what you did you let them know that you were serious and look where it LED you it LED you to making almost 30 grand so and then of course you had a five thousand dollar non refundable earnest money deposit from the cash buyer so even if you know the deal didn't close you would have still met at 4,000 after your thousand and you might have even been able to get your thousand back in some cases too so yeah either way not a big deal Aaron what an awesome deal that is so awesome you're crushing it I love having you in the group thank you for coming on the show and explaining this deal how many other properties you have under contract at the moment
Aaron:
yeah so um so yeah I close that one other one uh right before this one and then I have have one under contract now that I'm working you know just kind of working with the seller and and the buyer so we we have a buyer interested you know just having to kind of make sure everything's good to go on the sellers end and you know really just find their motivation to in order why they want to sell and then you know be able to use that and help them get to the closing table and make it a win win so I have that one under contract I have I had a another one that um you know I've been told for a little bit that I you know I'm gonna get uh he's just waiting to he's been offering on some other homes that he's trying to move to and then he hasn't been able to win that yet so hopefully I'll be getting that one soon if he can get another house that he's gonna move to under contract um and then you know
David:
just all the world needs it more than the pipeline when did you start doing real estate like so today that you're like I wanna start doing real estate
Aaron:
yeah so like September was the very start you know very very start you know no experience really with wholesaling at all you know very minimal experience in real estate um
David:
and then you know there's been the game and you've done 10 deals already
Aaron:
yeah yeah so you know been very very good
David:
well I gotta hand it to you man you're hustling you're you're doing a lot of marketing you're having tons of conversations with sellers you're doing all the things that real estate investors need to do a lot of times people will come to me and they'll say Dave you know I'm not having success and I say oka well let's get you doing the activities that real estate investors do and then they it's it's it's it's no secret they start having success right what are the activities that real estate investors do you gotta market you gotta get people on the phone that own propertie or get them calling you right you gotta make friends with them you gotta make offers to them right if you're local go meet them go view the property and then of course get properties under contract market those contracts or those properties to your pool of investors sometimes you got to go the extra mile which is what you did on this last deal you started pulling comps you started calling the investors that had sold those properties recently that's how you found your buyer and you know that's really it this business is incredibly simple right it's just you have to work the business you have to put in a little bit of of effort and some action in the more action you put in mthe more deals you're gonna do Aaron puts in a ton of action he's a massive action taker hence the reason that he's done 10he's got one under contract nowhe's got a few more leads that are warm or even hot that he's gonna probably get you know so again this isn't a complicated business it's actually incredibly simple if you work hard and you take massive action so Aaron amazing awesome work congratulations on that 30K deal you are crushing it again we love having you in the group any party words for the audience today
Aaron:
yeah I mean you know it's been good you know it like you said it it's all about taking action you know learning learning from failure you know imperfect action is always gonna be you know trying to get it perfect you know just just start you have to start somewhere and you know get get around people I mean the amount of knowledge that I've Learned from Dave and his group has been you know incredible if you're trying to get started or you're already doing deals I mean you know that's where he can even really help you get to the next level as well so you know reach out to him you know reach out to people and you know get get around them and get connected and just keep keep leveling up
David:
man I love it Aaron thank you for being here awesome stuff I'm looking forward to continuing to work with you and help you refine your skills do more deals do even bigger deals you know expanding to do any stuff outside of even wholesaling with you fixing and flipping acquiring rentals create a finance all these awesome strategies it's gonna be fun working with you again we love having you in the group guys if you wanna learn more about our group go check out discount property investor com board slash mastermind I have a free training over at that URL might teach all about the hidden seller method this is a method that we use find properties at deep discounts ideally off the market exactly like Aaron is using and how you can apply to join our group and work with me again that is discount property investor com forward slash mastermind Aaron thanks for being here I'm looking forward to seeing you tomorrow on our coaching call and with that sign it off see you guys thank you Dave thanks for listening to the Discount Property Investor podcast if you enjoyed this episode please like share and subscribe to help us reach a wider audience to jumpstart your real estate investing career please visit Free Wholesale course.com
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