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From DoorDash Driver to $1.5M in Real Estate (Making $50K/Month)

BiggerPockets2023-04-06
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287K views|1 years ago
💫 Short Summary

The video features real estate investor Josh Janus, discussing his journey from side hustles to real estate success, emphasizing the importance of early good deals. He shares insights on cold calling, off-market deals, and transitioning from DoorDash to real estate. The discussion covers strategies for working with investors, vetting sellers, and understanding client criteria. Tips on property cash flow verification, delegating tasks, and out-of-state investing are also highlighted. The speaker's experience with rehabbing properties, tenant selection, and scaling investments is shared, along with advice on lowering tax burdens and increasing profits. The conversation ends with a focus on social media platforms and avoiding scams in the industry.

✨ Highlights
📊 Transcript
Success story of 22-year-old real estate investor Josh Janus.
00:32
Josh has built a portfolio of over 10 properties and sold $17 billion worth of real estate.
Importance of buying good deals early in real estate investment emphasized.
Josh openly shares his fears and vulnerabilities, highlighting his journey from first deal to current success.
Listeners encouraged to learn from Josh's story and apply insights to their own entrepreneurial pursuits.
Josh Janis transitions from side hustles to successful real estate agent and investor.
02:57
Started with duct tape wallets and sneaker reselling before moving into real estate.
Sold over 125 properties totaling $17 million in his first year.
Initially planned for house hacking but shifted focus to real estate investing.
Leveraged savings and side hustles to build a successful career in the industry.
Early Entrepreneurial Spirit and Lessons Learned
06:41
Speaker sold duct tape wallets and flipped sneakers for profit as a young entrepreneur.
Importance of Time Value and Assets
Early lessons in entrepreneurship translated into real estate investing for the speaker.
Significance of Reinvesting Profits
Highlighting the importance of reinvesting profits into assets for long-term financial growth.
Importance of investing profits into ventures that generate more money.
08:23
Scalability of business mindset, transitioning from selling shoes to exploring various sales jobs.
Real estate as a pinnacle career choice with no formal education requirements for agents.
Personal experiences in real estate sales, comparing the time and effort required to sell houses versus retail items.
Mention of modern tools like DocuSign for convenience in real estate transactions.
Real estate investment journey from researching to implementing strategies.
10:43
Research led to Bigger Pockets forums and mentor Remington Lyman.
Learned about house hacking and off-market deals through mentor.
Dedicated time to cold calling for deals despite working in computer science.
Strategy involved finding leads, presenting to agents, and understanding investor preferences.
Transition from DoorDash to Real Estate
12:51
Making $500-$800 per week working 20-30 hours with DoorDash.
Making a significant profit from their first real estate deal.
Insights on cold calling, finding motivated sellers, and earning referral fees.
Potential for higher earnings by obtaining a real estate license and representing buyers or sellers directly.
Speaker's experience with cold calling and building a career in real estate.
14:46
Utilized hybrid wholesaling approach without putting deals under contract.
Dedicated time outside of school to cold calling and obtaining license.
Cold called from 9 am to 11 pm, emphasizing the importance of balancing responsibilities.
Found an investor interested in the brokerage they were working at.
Working with Investors Without Traditional Listing Agreements.
17:36
Agents can earn a portion of the commission by bringing buyers without a formal contract.
Off-market deals are presented to potential buyers with the condition of using the agent who brought the deal.
This approach helps agents capitalize on leads who may not be motivated to sign a listing agreement.
Detailed deal descriptions are provided initially without addresses or pictures, securing buyer representation agreements once interest is confirmed.
Transitioning from DoorDash to focusing on real estate and leveraging warm leads.
21:15
Dedication to lead generation and following up with potential clients until conversion.
Real estate market still hot in early 2022 but starting to cool off, with listings getting multiple offers.
Increased presence on Bigger Pockets by posting frequently, resulting in a thousand posts in three months.
Daily routine on Bigger Pockets forums includes engaging with the community, answering questions, and sharing insights on Ohio market and real estate investing.
21:59
Actively participating in forums led to building relationships, generating leads, and setting up calls for potential deals.
Approach to getting sellers to agree to sell privately involves understanding their needs and offering fair deals.
Strategy for finding investment properties includes data analysis and targeting motivated sellers.
Real estate agent shares journey from licensing to closing 11 deals in 3 months.
24:27
Acknowledges making mistakes but emphasizes learning experience.
Discusses volume-based approach, matching motivated sellers with interested buyers.
Emphasizes managing expectations and working on multiple deals simultaneously.
Praises individual for summarizing complex concepts concisely, drawing parallels to art history.
Importance of not getting emotionally attached to deals in real estate.
27:30
Josh's approach focuses on lead measures over lag measures, using an analytical strategy.
Analyzing mistakes and making changes can help avoid future errors.
Real estate investor's mindset involves decisions driven by numbers, not emotions.
Importance of Properly Vetting Sellers and Tenants in Real Estate Deals.
28:49
Ensuring sellers are properly vetted can prevent issues like misrepresentation of property.
It is crucial to ensure tenants pay on time and have enforceable agreements in place.
Thoroughly vetting potential buyers is necessary to avoid complications, as illustrated by a personal experience shared by the speaker.
Emphasizing the need for a screening process for both buyers and sellers, procedures, and checklists to streamline transactions.
Understanding clients' criteria is crucial for real estate investors to ensure successful deals.
32:27
Over 60% of investors prefer TurnKey properties for passive income, while 40% pursue value-add strategies like Burr and creative financing for financial freedom.
Agents need to clarify each client's definition of a 'deal' to meet their expectations.
Some investors aim to retire early by building a solid portfolio, requiring strategic planning and self-management.
Understanding terms like estoppel is crucial for navigating real estate transactions effectively.
Overview of property cash flow verification process in real estate investing.
34:01
Speaker shares experience of closing first real estate deal with a four-unit property generating $450,000 in revenue.
Speaker earned $3,000 from the deal, finding it intimidating but rewarding.
Speaker scaled property sales business to $50,000 in monthly commission within six months.
Speaker invested in two duplexes at a 30% discount for a potential Burr deal.
Journey from $50,000 to $100,000 a month through real estate investments.
36:50
Emphasis on delegating tasks to virtual assistants and growing business systems.
Experience with first investment, a duplex property, and using hard money loans for financing.
Focus on diving deep into specific real estate deals, highlighting details and strategies involved.
Real estate investment success story.
39:56
The speaker found a property for $85,000, negotiated the price down by $10,000, and estimated $30,000 for rehab.
Used hard money for funding, renovated the property, refinanced it, and now rents it out.
Overcame fear of debt and learned to trust numbers in deal evaluation.
Experience with Out-of-State Real Estate Investing
41:55
Managing a project remotely requires relying on a knowledgeable team for success.
Importance of having multiple project managers to oversee various aspects of the property, such as tenant relations and contractors.
Advising against using outdated sales comparables when appraising a property, emphasizing the importance of considering recent sales.
Expressing confidence in handling out-of-state deals after gaining experience and learning from past mistakes.
Key Highlights of Property Rehab and Tenant Selection.
44:56
Unexpected expenses like live electric wires can increase the budget by 10% during property rehab.
When choosing tenants, prioritize those who pay on time and maintain the property well.
Verify rental income before purchasing a property to avoid financial surprises from non-paying tenants.
Pay special attention to off-market properties or deals directly from sellers for tenant selection.
Investor behavior in holding onto properties despite low return on equity until issues arise.
47:11
Example of an off-market deal involving a duplex with high rental income, but tenants vacated upon sale leading to loss of potential rental income due to unrealistic rates.
Investor quickly acquired more properties after the first deal to scale up with contracting teams and W-2 positions for efficient project management and cost reduction.
Changes in loan seasoning period require waiting 12 months instead of 6 months to refinance and pull cash out of property.
49:36
Non-QM loans are an option, with higher rates based on property income.
Multi-pillared approach recommended to adapt to changes without slowing down.
Advice to consider scaling approach and diversifying investments for long-term success.
Strategies for Lowering Tax Burdens and Increasing Profits in Real Estate Investments.
51:36
Setting up an S corp and utilizing cost segregations are recommended strategies.
Focusing on bigger plays can help save on taxes.
Effective time and money management are crucial for scaling up investments.
The speaker shares his goal of owning 100 units by the end of the year, highlighting his journey from being a doordash driver to owning a 1.5 million dollar portfolio.
Discussion on social media platforms such as Instagram, Bigger Pockets, YouTube, and personal websites for finding speakers.
53:48
Advice on avoiding scams and the potential use of a subscription model to prevent fraud.
Promotion of David's YouTube channel, books, and upcoming book 'Scale' for real estate growth.
Excitement and admiration expressed by hosts for each other's work.
Friendly sign-off by David Green and Rob the comedian absolo.