From College Dropout to 50 Flips a Year with Carter Crowley

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From college dropout to running 50 flips a year—Carter Crowley’s real estate journey proves what’s possible when you master your numbers, build strong relationships, and take consistent action.

In this episode of The Wisconsin Investor Podcast, Carter reveals how he went from traditional agent to full-time investor and the exact strategies that fueled his rapid growth.

What you’ll learn in this episode:

• How Carter funded his first flip in 2018 using a $65,000 family loan and $32,000 personal funds
• Why he evaluates deals on profit-per-month instead of total profit
• His simple deal formula: ARV × 90% – 10% (holding + commissions) – rehab – profit = max purchase price
• The crucial lesson: build banking relationships before you need them
• How mentorship programs like Fortune Builders & CCF accelerated his success
• Why focusing on consistent, smaller wins beats chasing $50k profits every time

Carter’s story shows that flipping isn’t about luck—it’s about systems, speed, and strong connections.

Episode Transcript

Speaker 1 (00:01):
What's up guys?
Welcome back to another episodeof the Wisconsin Investor
Podcast.
I'm super excited for today'sepisode because I got my bro,
carter Crowley, with me, who I'mgoing to introduce here in a
second, but before I do that, Iwant to talk about some data
that we just put out on ourwebsite.
I talked about this on a few ofthe episodes already.
One of the questions we hear inthe wholesale business at
Wisconsin Discount Properties isare your ARVs accurate?

(00:23):
Carter and I were actually justtalking about some markets that
he's in.
There's some other wholesalersin that market who are maybe not
so great at figuring out ARVs,and it's a challenge, right,
it's a tough thing, but we ransome data.
We looked at 50 flips fromthose of you guys that have
bought deals from us over Ithink it was in 2024, and what
they sold for, and we were, onaverage, $5,000 below the ARV

(00:48):
that they actually sold for andwe included the cleaning listers
.
So these were ones where wesaid, hey, after repair value is
going to be this, but somepeople just bought them, cleaned
them, listed them and sold itfor less.
They still made their margin,but we included those.
So our ARVs are actuallyprobably quite a bit more
conservative than what theseproperties are actually selling
for.
So if you're interested ingetting some off-market deals,
head towisconsindiscountpropertiescom,

(01:09):
put your information in.
You can get added to our buyerslist.
It's free.
You get on the list.
You get emails sent to youevery single Monday with deals
that you can scoop up like thatand make some big juicy profits,
like we're going to talk abouttoday with my boy, carter
Crowley.
What's up, carter?

Speaker 2 (01:23):
Not much, not much Living the dream.

Speaker 1 (01:27):
Excited to get you on here.
Man, I can't believe we haven'thad you on yet.
Dude, I've been doing thisalmost a year now.
I'm like why did I not haveCarter on yet?

Speaker 2 (01:33):
Well, hey, no, I appreciate the invite, the offer
and it's always fun to talkbusiness, talk real estate in
life, so I'm excited, corey.
Yeah, this will be fun thiswill be fun.

Speaker 1 (01:44):
Well, tell everybody a little bit like who is Carter
Crowley and how did you get intothis whole real estate thing?

Speaker 2 (01:48):
Yeah, so I'm.
I am currently 29 years old,started in the real estate space
, um, in 2015.
So I I was going to UW Oshkosh,went for a year, dropped out,
got into real estate via, like areal estate license, was
selling while helpingindividuals buy and sell real
estate as a license agent forprobably the better part of five

(02:12):
years before we transitionedthe business into the investing
space more full-time, like fixand flip, wholesale rentals, and
then from there we just kind ofwe have ramped up the business
quite considerably since then,but it's been really good, like
it's a heck of a lot moreenjoyable than traditional real

(02:33):
estate, at least in my opinion.
I don't necessarily loveshowing, like buyers, the
occasional house or 20 differenthouses to buy one of them.
I'd rather kind of go out anddo it on our own.
So it's been awesome.
I honestly loved every secondof it.
And, yeah, now going on, I don'tknow, I don't even know 2025.
So how many years of experience?
That is in the well, 10 years,I guess, in the real estate

(02:56):
industry.
So it's been a whirlwind in allsorts of stories, scenarios.
That's been absolutely crazy.
Yeah, buddy.

Speaker 1 (03:06):
Yeah, that's the thing in this business, the
thing I love about the realestate business.
For those of you guys that arejust thinking about getting
started if you like things tonever be the same, get into real
estate right.
Like there's always like somecrazy, weird scenarios that pop
up.
You're always learning.
You're always like like whatyou can do that, or this
happened, I didn't even knowthat was a thing.
Like you're always learning.
You're always like what you cando that, or this happened.
I didn't even know that was athing.
You're always learning stuff.

(03:27):
Man, buyer's agents dude, Ifeel bad.
We have buyer's agents thatlisten to this, and I'm with you
.
Man, you've got to be.
It's a grind.
Yeah, you've got to be aspecial breed to enjoy that job.

Speaker 2 (03:36):
Well, and the way I look, represent these buyers or
sellers or whatever the case is,and I still currently list and
sell all of our flip houses.
Okay, I'm an agent still on onthat side of things.
But like representing buyers,like if you did that for
yourself, if you take the samework, ethic and effort and
everything like that and gotinto flipping or wholesaling,

(03:58):
like you would fricking kill it,like that's as simple as it is.
Cause it's like, okay, nowyou're working on your own time,
like maybe a little bitdifferent skillset, but you're
still going out and meeting withowners and the same thing,
negotiating deals and I don'tknow like it's.
I kind of have a special placein my heart for buyers agents,
because it is.
They are amazing.
When it fricking sucks likedeal with buyers all the time,

(04:21):
I'm like, yeah, that's likeyou's, like you're dealing with
the worst of the worst atcertain points.
There's some people that arefantastic.
Other people are miserable,absolutely.

Speaker 1 (04:33):
That is one of the reasons.
So we do some flips.
Right, you do way more flipsthan we do.
We do some flipping, and thatis the worst part of flipping, I
feel like, is dealing with thebuyers.
It's like Bridezilla yeah theproperty All the time.

Speaker 2 (04:47):
And there's certain agents that I'm like, okay, like
let's try to get multipleoffers on this place.
Like we're definitely nottaking an offer from this agent
if they write on it.
But the other agents likethey're still on contention
because, like you know, on theother side of that transaction
you go under contract and thenit's like they're just trying to
ream you out on every littledetail.
It's a 1920s house.

(05:09):
There's no 1920s house that'sgoing to be perfect, especially
if you're selling it for$200,000 or $150,000.
You kind of have to have theexpectation going in that
there's going to be stuff andjust try to work through that a
little bit.

Speaker 1 (05:22):
For sure.
So you got started in theinvesting side.
Was it 2020?
Is that when you started?

Speaker 2 (05:27):
Yeah, Okay, our first actual flip house was 20.
We bought one, so, kind of thebackstory, we got involved in a
guru-type program.
And when I say we, I'm sayingmyself and then my dad, who's my
business partner.
And when I say we, I'm sayingmyself and then my dad, who's my
business partner.
So we put up the huge lump sumpayment on credit cards to get

(05:51):
into this guru type program.
That was 2015.
And then I'm like okay if I'mdoing that, I might as well get
licensed.
So then I got licensed.
We didn't really do anything inthe program until I came to my
senses in 2018.
I'm like, okay, I've been inreal estate for three years now.
I see all these transactionsgoing on.
The prices back then werefricking dirt cheap compared to

(06:13):
now.
I'm like, why don't we trydoing this on our own?
So we started sending out somemailers, we started doing bandit
signs actually back then, andwe got our first flip house
under contract and wholesaledeal in the same week from
Bandit Signs.
No way, yeah.
So that was sick.
And then the city would callyou and re-meow because they
can't be doing this stuff.

(06:34):
We don't do that anymore, butback then we did.
That's a low barrier to entry,for sure, and with the Bandit
Signs, the first wholesale dealwas like minimal profit, I think
, like three or $4,000.
The flip house we ended upprofiting like 17 grand, so not
even a great flip house, but I'mlike it got our feet wet.
We got some experience, youbuild a little bit of a track

(07:02):
record and then it gives you theconfidence to execute.
But then, after 2018, we slowlystarted doing more deals.
And then 2020, 2021, duringCOVID, I was like, hey, I'm
going to just commit to thisfull-time on my side.
Instead of trying to sellhouses and representing people,
let's just get into theinvestment business.

Speaker 1 (07:19):
So you pretty much hung it all up at that point.
2020, 2021, covid you saidlet's go all in on on the
investment side of stuff.
I was like I'm not going torepresent buyers anymore.

Speaker 2 (07:28):
I don't really want to go out and show houses and
not be able to like shakepeople's hand and like meet them
, talk to them, like really withwithout a mask on or what have
you.
I'm like this is just a littlebit more nuanced and I'm like
this is a decent point and ittook a little bit of a hit on
income because, like, you kindof go from representing anyone
and everyone friends, family, soon and so forth that only

(07:51):
listing houses, well, but likethat more focused on the
investment business, right, likemade me surpass that that
income goal pretty fast.

Speaker 1 (08:01):
Yeah Well, there's a little bit of a slingshot period
, especially with flips, rightLike?
Your cash conversion cycle isgoing to be quite a bit longer
than if you have a buyer.
If you're a buyer's agent,you're 45 days, maybe.
You're flipping, you're four tosix months probably before
you're collecting your profit.
Check, right, so, yeah, soyou're going to have that little
lull there where you have alittle bit of dip for sure, and
with the flip houses that'swhere it's like.

Speaker 2 (08:22):
Even on our side now we kind of cherry pick and I
know like Tony from Good Fate healways made fun of me for
saying this, but I'm like we'recherry picking the best deals
for ourself.
We're going to sell off the orwholesale off or just relist the
other crappier houses, so tosay.
Because, like for us now, we'rejust trying to focus on the
cosmetic remodels, get in andout within a month, month and a

(08:43):
half, and then relist them.
Okay, because it's just betterfor the profit margins than,
honestly, the cash conversion ofthe business.
Because then it's like, okay,we're not draining our bank
account for the next threemonths working on this place.
Yeah, let's try to make this alittle bit more efficient so to
say For sure.

Speaker 1 (09:00):
How many flips are you guys doing now a year on
average?

Speaker 2 (09:09):
Generally we're trying to at any given point,
we're trying to have like threeor four in progress.
So it's like if we're sellingsome off, sometimes there's more
.
Like at the high point thisyear I think we had nine in
progress and I'm like that's alot of flip properties and a lot
of cash going out.
So, depending upon when housesare selling, when we're
relisting how far we are in theremodel process, but, like right

(09:29):
now, our sweet spot is likethree, four, five in progress,
have multiple listed and then beacquiring some on the backside,
or just like buying andrelisting the other ones that we
come across at any given point.

Speaker 1 (09:46):
So you might have, you know, a dozen of them that
you own.

Speaker 2 (09:47):
you take their time, but there's three or four that
are under construction at anypoint.

Speaker 1 (09:50):
Yeah, that's exactly it.
Yeah, okay, cool, how are youfinancing these?
You talk kind of like hey,money can be an issue, talk
about how did you finance thosefirst, that first flip, yeah,
and then what does thatfinancing strategy look like
today?

Speaker 2 (10:01):
And I'm sure it's a mixed bag, but I'm interested to
hear how you're navigating thatPhenomenal question on that
side, because that was thebiggest catalyst to growing the
business.
It's like, okay, we don't haveunlimited money on our side and
most of these we are not buyingwith our own money.
But the first one was privatemoney from a family member, so
they gave us the purchase price.

(10:21):
It was a $65,000 purchase price, so they lent us that.
They gave us the purchase priceit was a $65,000 purchase price
, so they lent us that.
We financed the rehab out ofpocket.
So I had my own money into therehab to finance and it was like
a $32,000 renovation on thevery first one.
So I'm like well, I have moneysaved, I have credit cards.
Whatever the case is, we'll dowhatever it takes to get that
one going.
But as we've grown and become alittle bit more sophisticated,

(10:45):
our best financing strategy isactually through a local
commercial lender, the ones thatdo ARV loans.
We specifically use West PointBank on Oshkosh.
They're great to work with onour side.
We've had track recordexperience with them and they'll
finance 85% loan to valuepurchase plus rehab.
We just have to come out ofpocket closing costs.

(11:05):
That's been great for usbecause it's like, okay, we're
buying these fix and flips.
With four or $5,000 out ofpocket, you can really scale up
a flipping operation doing that.
And then we use hard runninglenders still and then still
private money on that side tofinance the rest of them,
depending upon how much the bankis willing to take on or how

(11:29):
quick the closings are actuallyhappening, because if it's a
quick close the bank might notbe able to get an appraisal done
or what have you in whatever 14days or 21 days.

Speaker 1 (11:39):
Yeah.
So let's talk a little bitabout the money thing, kurt,
because that's alwayseverybody's role.
Oh it is.
You did not in your early 20sit sounds like have a rich uncle
in your case that's full ofcash to give you, or a trust
fund that you could tap intoright.

Speaker 2 (11:53):
No, you had to figure this out, right yeah.

Speaker 1 (11:55):
Bootstrapping right and I think that might be like
when I started.
I remember Tony from Good Faith.
He was one of my early mentorsand uh, I remember him and him
and his brothers.
He was telling me like one day,all of a sudden, he just
finally tells me he owns like 50rental doors and I was like how
did you get to 50 rental?
Like how and he was like atraditional mortgage broker at
the time I went dang, I wouldn'tgot my mortgage license Cause I

(12:17):
was like he must be making bankdudes buying 50 rental doors
20% down, paying all this rehab.

Speaker 2 (12:24):
Exactly, exactly.

Speaker 1 (12:24):
It's crazy.
And then I figured out like ohno, he wasn't doing that.
He was using a lot of privatemoney.
He was basically his own hardmoney lender and all those
things and kind of learned thatwhole process.
But I think for a lot of peopleout there that are listening to
this, that are maybe newer, oreven some of us that have been
in the game for a while, there'salways new ways to get money.
You just mentioned West Point.
They do something a little bitdifferent.
There's so many differentcommunity banks.

(12:45):
They all have differentappetite, they have different
programs, that kind of thing.
Let's talk a little bit aboutfirst that West Point
relationship they're doing.
85% Is that of the ARV they'redoing 85%.

Speaker 2 (12:54):
It is, they'll go 85% of the ARV.
The caveat to that is, in thebeginning there's a certain risk
threshold that they'll havewith any new borrower.
So we did have to put down onthe very first one, 10%.
I'm like okay, that makes sense.
So then they're 75% loan tovalue.

(13:15):
But with that over time, aswe've had the proven track
record of hey, we're saying theARV on this place is 310.
They get the appraisal done,it's actually at 325.
Okay, they're a little bit more.
We're a little bit moreconservative in our judgment.
We're giving them rehab numbersthat are actually legitimate
for what it'll cost us.

(13:35):
And then you have the, theperformance, the track record of
okay, they said it was going totake six weeks or eight weeks
to remodel this place.
They came in, or we came inright around that time frame.
Um, in performance and in justdoing what we said we're going
to do and in the beginning wegrew it a little bit slower than
probably most people might like, we didn't bite off more than

(13:56):
what we could chew.
But by that performance withwest point now we've created a
track record that they'll lendus on on lot of different
projects, even whether it's inthe Fox Valley area or out of
the area in just different partsof Wisconsin, they're still
willing to take on that loanjust because we've proven
ourselves time and time again.
And that's the huge thing, andyou've probably had the same

(14:18):
experience, corey on the locallending side of things with
local banks.
It's like once you proveyourself the local lending side
of things with local banks, it'slike once you prove yourself
time and time again, they arewilling to change things a
little bit or work with yourbusiness a little bit better.
So then you're a little bitmore capitalized in areas that

(14:39):
you didn't necessarily thinkthat you could actually get to
that point For sure.

Speaker 1 (14:43):
And that's always like the chicken or the egg for
people out there, right, Likebrand new people, that a lot of
times they want to do realestate because they don't have a
lot of money and they want tomake more money.
It's like almost.
It's like you got to almostfind a way to get scrappy on
that first deal or two and makesure that you're successful and
just like you said, just doingwhat you said you were going to
do.
It doesn't even have to workout perfectly.

(15:03):
You just got to communicate.
I think is the biggest thingwith these community banks.
It's just communication andjust telling them what's going
on.
Don't try to hide if something'sgoing wrong, Even with your
hard money lenders.
Don't hide from them.
Don't ignore them.
Just be upfront, Be honest.
Open communication and I thinkit goes a long way, even if the
deal goes south or it goes bad,as long as they get paid back,

(15:23):
even if it didn't go perfect,but you communicated in the
process.
I think you're going to build alot of relational capital with
them and that's going to open upa lot of doors.
So you said you can do so manydeals right now, Carter, because
all you got to do is pay forthe freaking closing cost.
I mean that's insane.

Speaker 2 (15:37):
And then once you build up the nest egg and it
doesn resale price and profit.
So if it's a $250,000 house,you make 25,000 in profit.
Well, like you can kind ofsnowball that into multiple
different properties.
And even if you're leaving somemoney aside for taxes and if

(16:00):
you have overhead costsmarketing employees, what have
you you're still able to scaleup a business and make a pretty
decent income in the process.
And that's where I recommend toany of my friends or
acquaintances in the businesslike they probably start
building the relationship soonerthan you actually need it.
Because if you find, like thisamazing flip property that is

(16:24):
just a literally a buy andrelist, well, now you have the
ability to finance it and you'renot passing that up or trying
to wholesale a deal that you'regoing to make $5,000 on or
$10,000 on.
You can actually make $50,000on this deal, correct.

Speaker 1 (16:38):
Correct.
That's such good advice and Iactually was just talking to one
of our employees this week.
She's pretty aggressive onwanting to get some properties
and she's on top of it.
She's like, hey, we want to getour next property.
I'm thinking of talking to thisbank or this bank and what do
you think?
What do you recommend?
I'm like this is awesome thatyou're getting out in front of
it, Like you said.
I'm like kudos to you for, like, getting out in front of these

(17:01):
relationships before you needthem.
Correct.

Speaker 2 (17:04):
And that's the main thing.
It's like hey, and then you canprovide the bank with evidence.
It's like, hey, this is myexperience so far.
I'm identifying these.
This is where the numbers areat, even if you do a few deals
prior to going to that bank.
It's like, hey, here's thetrack record of my past deals.

(17:25):
I know, obviously, past dealsdon't necessarily mean future
success, but it speaks foritself.
I bought it at 100, stuck in 50, sold it for 250, or whatever
the case might be.
I'm just using wrong numbers,but it creates that trust factor
that you're dealing with people.
At the end of the day, it'svery much a people-based
business and the morerelationships that you create on

(17:47):
that side, honestly, theopportunities are endless,
especially if you plan on doingit for a little bit of time.

Speaker 1 (17:54):
Yeah, one of my favorite books.
I've mentioned many times onthe podcast who, not how.
Bankers are great who's andthey can open up so many doors
for you, because a lot of timesyou're like, how am I going to
get the money?
It's like, no, who has themoney that I need?
And then it's just buildingrelationships with as many of
those people.
It's like, and my advice to herlast week was talk to all these

(18:14):
different banks.
They'll just go to this one.
Talk to them all, cause even ifthis bank right now says no,
not right now, come back to meafter blah, blah, blah, at least
.
Okay, cool, I started therelationship Like you said, I'm
going to go build a little bitof a track record and then treat
it like a job right, like my,my parents are always funny on
this.
I always gave my mom crapbecause they got into it and
like she kind of had thisexpectation that the bank is is

(18:37):
working for her and I'm like no,no, no, no, no, you got, you
got that wrong.
Like they have the money, youneed the money.
You got to treat like you gotto approach them professionally.
You got to like sometimes yougot to stay on them and they
might be testing you in a wayyou don't even know.
They're testing you but theywant to see, like, how bad do
you want this Right?
Like are you?
Are you just going to send meone email and then never hear?

(18:57):
I'll never hear from you againexactly, and they got a million
people trying to get money fromthem.
You got to be the squeaky wheel, sometimes in the nicest way
get in front of them.

Speaker 2 (19:07):
Hey, if you're like they're taking a risk on you.
It's not like they're borrowingyou 50, a hundred dollars, Like
it's typically 50, a hundred,$250,000.
It's like they need to knowthat you're going to have some
sort of work ethic when it comesinto it.
It's like, okay, hey, I'm goingto send this one person a cold
email.
I'm never going to call them.
I'm never even going to visittheir office.

(19:28):
Yeah, no, you're, you'reprobably not going to visit
their office.
No, you're probably not goingto get a loan from them, correct
?

Speaker 1 (19:32):
And FaceTime.
I think that's important.
It's so important, it's soimportant.

Speaker 2 (19:37):
When you meet someone , you can kind of get a feel for
like I don't know firstimpressions.
At least in my opinion, they dogo a long way.
If the first impression is bador you seem untrustworthy, can
you get out of that?
Of course you can.
But if, if consistently, you'remaking a bad impression on
people, well, that kind of Idon't know, it lasts, like it

(20:00):
definitely lasts, and then it'slike, okay, well, are we going
to do business with this person,right?
Maybe, maybe not, Probably notRight.

Speaker 1 (20:07):
I think.
I think one of themisconceptions for people out
there too is like, if you're amortgage broker and like you've
bought in a house before, that'svery much like do you check
these boxes that Fannie Mae andFreddie Mac have set up?
And it doesn't matter if you'rethe biggest jackass in the
world, as long as you check theboxes, we'll give you a loan
right In the commercial space.

(20:29):
Like you mentioned, carter,it's all relationship.
They don't have to give anybodya loan for any reason.
They can just deny you becausethey don't like you.
Exactly, plain and simple.

Speaker 2 (20:38):
Or they don't trust you Exactly and people they're
like, oh, I don't know why Ididn't get a loan, or whatever
the case is, like, well, again,it's a people business.
Do they even know who you are?
Or have you just called themover the phone and then
complained about something orasked to do something?
It's like, right, no, we're notgoing to lend you.
It's as simple as that.

Speaker 1 (20:58):
Yeah, and people discount that quite a bit For
sure.
The biggest way I think of italways goes back to getting a
job.
Like, if you were thinking oftrying to get a job, how would
you approach that or that hiringdirector or whatever?
Treat it the same way in thecommercial lending space,
correct, it's the same kind ofthing.
Talk about the private moneynow.
So you've got somebody to giveyou $65,000 on a deal and you've

(21:18):
never done a deal before.
How did that happen?

Speaker 2 (21:24):
It was actually a family member of ours that
helped, that it was family.
But in the beginning it's likewe didn't have, you don't have
anything.
We had no real estateexperience.
I had no real estate experience, my dad at that point had no
real estate experience and it'slike, okay, well, now we need to
try to get a little bit morecreative with this.
And that very first one we triedgetting a hard money loan from

(21:46):
an out-of-state company.
They almost completely blew up.
The deal appraisal came in ontheir side at like 89 000,
completely fixed up for thehouse, and we ended up selling
it for 135.
So I'm like, well, that was offand they didn't want to give us
the what we needed in order topurchase it.
So there, there was somecontention there with myself and

(22:06):
, um, my dad on the front side,because he's like, oh, this is a
terrible deal and I'm no, it'snot a terrible deal.
I'm like their appraisal wasshitty, like that's what it came
down to.
So then we talked to some familymembers.
Um, we got it ended up being mygrandma actually gave us the
initial loan amount, which islike it's, this is my risk
threshold, but you're going tohave to figure out the rest of

(22:29):
the situation.
I'm like, okay, well, I'mwilling to risk my money and I
had saved up enough fromcommissions and other stuff that
I was doing.
I'm like, hey, I'll putmaterial costs on credit card.
I have no problem doing that onmy side.
I'll fund the labor bill out ofpocket on my side.
So it ended up working outextremely well.

(22:50):
And then my dad pretty muchmanaged the renovation, which is
what he does today, and I'mlike, hey, if you'll take on
that responsibility, since I'mstill listening and selling
houses on my side, I will fundthis completely out of my own
pocket, which ended up workingout extremely well.
And then we of course profitedon the first one.
Not as much as what we hadhoped, but it was profitable, so

(23:13):
I'm not going to complain aboutthat.

Speaker 1 (23:14):
Right, grandma got paid back.
You got all your money back.
Yep, yep, you got to treatyourself a little bit right,
nice I always say if you makeanything on your first one,
you're doing something right.

Speaker 2 (23:27):
And that's where I'm like it's not like the amount of
experience that you gain, evenon the deals nowadays that we
lose money on and of coursewe're not trying to lose money
on projects.
But flip houses can sometimesgo south Like there's stuff that
you're not aware of or it sellsfor less than what you were
hoping for.
Whatever the case is, there'sthe apparent risk.
As long as the lender's madewhole, you learn your lesson on

(23:52):
the deal and you pick up somestuff from it, it's like okay,
well, this is a learningexperience.
Let's chalk it up to that Notmake the same mistakes in the
future.
You can at least turn out alittle bit better than most.

Speaker 1 (24:03):
Yeah, there are a couple of things on that card
that's.
A great point Like I've saidthis a few times on the show too
is I think of how much I paidto go to college and I went to.
I went to UW, eau Claire.
Yeah, wasn't, wasn't crazyprivate school or anything like
that, but it was still expensiveand I got a little piece of
paper and I, you know, made afew bucks with my degree, but
nothing really crazy If I gotta,if I gotta lose a little bit of
money on some deals, but Ilearn a crap ton and then I can

(24:24):
make a one.
Right now in Jacksonport,wisconsin.
I sent it a couple times on theshow too.
Bought this place, thought itwas a slam dunk deal.
It's got a big pole building onit, so great I can rent that
I'll put an Airbnb.
Or I'll like fix this house upon the back, make it an Airbnb,
this would be awesome.
Well, I get a contractor inthere and it's like so bad, like

(24:46):
the house was so bad that he'slike I think you're better off
just demoing it and putting uplike a, a manufactured house.
By the time I would get donerehabbing it.
I'm like shoot, I'm like that'snot a bad idea.
So I looked into that whole newprocess for me.
I don't do any bills, I don'tdo anything, right, I'm looking
at the numbers of the house,right, I'm like oh, this is what
the house cost.
Nice house like this is great.
It was 170 grand for thismodular, okay house which is

(25:09):
still expensive, right, right,I'm like dang for a trailer
house, right?
Yeah, like, whatever, it's athree-bedroom, two-bath, this
thing will be great.
Well then I started dealing withthe county.
I don't know.
I didn't know how to deal withthe county.
So I'm like generaling thiswhole thing, I don't know what
I'm doing.
Counties, like I can tell theyI'm making this up as I go, chat

(25:34):
GPT and stuff.
Hey, that's resource.
Yeah.
So the property, the house, theslab.
I was like, well, I'll justdemo this one, I'll put one up
similar size, I'll just put itback on the slab it was on.
This will be great.
Connie's like, ah, for a newone.
Your back of your property iswithin a 40-foot setback of the
rear property line, so you'vegot to move it.
I'm like oh no, I've got to do anew slab.

(25:54):
How much is that?
So that new slab.
I ended up getting them to notmake me move it too much,
thinking I can reuse the slab.
Well, the slab drawings for amanufactured house are different
each one because of where thatsteel beam goes in and where the
reinforcement has to be.
So I ended up having to do anew slab anyway, even though I
kept it in the same spot 18grand later that I didn't budget
for.
Then I have to bring the wellup to today's standards, so

(26:17):
that's another 15 grand.
Didn't budget for that one,yeah, so excavation, all kinds
of stuff, like I mean the budgetis blown.
I've got to hold this thing for20 years to make any money back
on it.
But I'm learning a ton.

Speaker 2 (26:31):
I actually, yeah, and that's like the way I look at
it.
And to that point, corey, it'slike, okay, can you look at it
from the point of like, oh, woeis me, this is terrible.
And you still feel like thatthere, there's no way to get
around that, right?
But like for future reference,if you ever decide to do it
again.
And generally I'm taking theapproach of like, hey, I'm never

(26:51):
buying a property like thisagain, but, uh, you can learn a
crap ton.
Now, if someone else you knowruns across the experience like
that, or at least even from thecontent side of things, it's
like, hey, let's document this,let's share it with, with the
people we know, or even thepeople we don't know, whether
it's on YouTube or Facebook orInstagram or whatever.
They can learn from this andhopefully something will come

(27:12):
from it.
And if nothing ever does, thenwhatever, it's just in the
knowledge bank up there, forsure.
But yeah, it's so, sointeresting how you run across
some of those scenarios.
And then it's like, okay, nowwe just need to figure this out.
Let's try to get in and outwithout hemorrhaging so much
money, for sure, and make themost out of it.

Speaker 1 (27:33):
For sure.
Well, well, the context too.
I got from this, so I wasactually just before you and I
got got um on recording this.
Yeah, I was talking to the guywho's been doing like he's like
the coordinator excavationcompany guy, whatever he's been.
He's been an awesome contactfor me, super helpful, and he's
like we're joking because I waslike hey, when's that driveway
going in?
Now, because now I gotta putdriveway in another cost I
didn't think about and uh, sosay when you guys gonna go over

(27:57):
to get that driveway?
done or whatever.
And then he's just he's like,what else does it happen in
there?
And I said, wow, I got this.
Now we have to do skirtingaround this thing.
I didn't know skirting was athing.
There's goes another 10 grand,yeah anyway.
And he says he just startschuckling and he goes you're
probably never going to doanother one of these.
And I said you know what I saidthat mid-process?
And I said, but I've learned somuch in this process now, like,
I think the next one I could doway better for way cheaper and

(28:20):
I would knock it out.
And he starts laughing.
He said something that wasreally funny.
He said the first time you doit, you feel like an idiot.
The second time you do it, youknow, which is so true.
By the time you get to thatsecond one, you know enough now
that you could take it on.
The other point I want to getback to, though, carter, that I
think is really important, aboutwhat you're doing and what
people who are doing.
This volume is important.
If you only do one deal and youlose on that deal, you're

(28:44):
screwed Correct.
But you have enough deals.
You're kind of doing a sort ofa dollar cost average, yeah, and
you might lose on some, but youmake huge over here.
Yeah, in the longterm you'regoing to make a nice profit.
But I see that happen.
Sometimes.
People go too slow, not sayingyou got to go mortgage your life
and make a bunch of mistakesand and get out in front of your
skis or anything like that, butjust know like if you're out

(29:13):
there, do another one and you'regoing to make some money, and
then the next one you'll makemore and more and it'll just
you'll be able to build onyourself.

Speaker 2 (29:18):
But you can't just do one and lose, and that's it.
And that's the thing it's like.
Okay, I know, at least in thismonth, what are we going to flip
, what are we going to just takeback to market, what are we
going to keep ourselves?
So on and so forth.
But with any of those ones thatgo south, it's like we have

(29:41):
this one over here that's goingto make up for it and that's
what.
As long as you don't getcompletely out of it, out of the
real estate space, eventuallyyou are going to be in the
positive.
And as long as you can sustainthat and know that and have the
confidence, then I think youshould be in a somewhat decent
place.
But it's like if you have thatinitial bad experience and
you're like, oh well, I'm goingto blame this person, I'm going

(30:02):
to blame the contractor, I'mgoing to blame whomever during
the transaction, Of course it'snot going to be a good
experience.
You're going to have a negativeoverall view of the flipping or
rental space and you're nevergoing to want to deal with it
again.
And then you're going to keepspreading that word like a virus
to everyone else in your, yourpersonal network.

(30:24):
It's like, oh well, yeah, maybereal estate isn't the way to
make profits.

Speaker 1 (30:28):
Right Money it's like no that couldn't be further
from the truth, correct, whichis you and I both have bought
properties for people who arelandlords, for example.
Yeah, I'm sick of the tenantsin the toilets, you know, you
hear that all the time.
We're like great good for us,we'll happily take your problems
off your plate for you and we'dlove dealing with tenants or by
I say we, I mean my managementcompany does, and I love buying

(30:51):
them.

Speaker 2 (30:52):
Exactly, it's like if you do it properly from the
get-go and just talk to peoplewith experience in the space and
then they'll advise you on and,of course, you want the people
that probably have your similarlifestyle that you actually
admire.
Because if you're, askingadvice from a landlord who has
tenants who are not paying orabsolutely hates the space, like

(31:14):
, yeah, you're probably notgoing to be going down the right
path from the beginning, notthe person you want to get
mentorship from.

Speaker 1 (31:21):
Exactly, yeah, exactly.

Speaker 2 (31:22):
Pick your mentors wisely, for sure, for sure,
that's like that is the goldennugget right there, yeah, yeah.

Speaker 1 (31:30):
Well, speaking of mentorship, do you have any
mentor?
Have you had mentors?
I know you said you did theguru thing.

Speaker 2 (31:34):
Yeah, Was that do you think that it was helpful.
I honestly like hindsight's,always 20-20.
Right, I don't think we wouldbe at the spot today without
investing that money.
So I'm like anyone who everasked me hey, should I sign up
for this program or that programIf you will implement and
eventually we did implement onwhat we learned?
We still use some of theresources today.

(31:56):
We picked up a ton of knowledgefrom that and I would highly
recommend that people find amentor who's operating or
sustaining the business that youactually want to do.
And in that program that we hadsigned up for, it was fortune
builders.
I don't know if you've everheard of it, oh yeah, yeah.
So we had signed up for fortunebuilders and I'm like it's

(32:18):
basically systemizing the wholeflipping process and that's why
we were, and have been, soheavily on the flip side, cause
it's like, yeah, that's what welearned, we implemented it and
I've been very grateful for that.
And then today it's like I'vesigned up for mentorship
programs, whether it's on theapartment investing side or on

(32:39):
the right now it's.
I'm in one and I don't know ifyou've ever heard of the guy,
ryan Dawsey.
So I'm in his CCF program, justbeing around like-minded
individuals who have similargoals or aspirations and will
allow you to expand, like yourthought patterns or whatever is
going on up here, has beenextremely vital for our business

(33:01):
and we've seen, since I'vejoined actually CCF, we've seen
a drastic improvement in whatwe've been implementing.
I probably wouldn't have knownthat before.
Yeah, the cost of thementorship is a certain dollar
amount, right amount.
Right like the amount that yougain over the course of months
or years.

Speaker 1 (33:20):
Is it's like it pays for itself, 10x or 20x or 30x,
or like an unlimited return, 100yeah, I think that's great
advice and I think for peopleout there, one of the things
that we run is the rei successclub.
Yeah, agree, bay, it's a.
It's kind of an entry into likementorship right, in a way like
we're not, we're not, they'reoffering coaching programs, but
we're there basically takingdifferent people's experience

(33:42):
levels.
You've been there and spokeright, yep, and it's like we're
taking okay, here's whatcarter's doing.
Really well, you can come andjust for free, or I think it
would be charged like 100 bucksa year or something for some
kind of basically to make surethat you're vetted and you want
to come and put in but it'sbasically free, uh, and you come
and you get to learn fromsomebody like you who's doing
what Probably 50, 60, 70 flips ayear.

Speaker 2 (34:05):
Yeah, yeah, and that's so like last year is yeah
.

Speaker 1 (34:07):
Just 50.

Speaker 2 (34:08):
Yeah, yeah, so it's insane with that and in like the
, the.
I always call them like freemonthly meetings because they're
essentially free, like theminimal cost to it.
I'm like I'm not even going tocount that in in the actual cost
, cause the value that you gainin a networking environment,
that is, is wanting other peopleto win, like there's some bad

(34:29):
ones but there's also a lot ofgood ones.
Yeah, it's like just be aroundthe like-minded people that want
you to win, want you to havesuccess, yeah, you to win, want
you to have success.

Speaker 1 (34:39):
Um, are all who are all in this for the long term,
yep, and that's, and I think Ithink, like what you're doing
with with dossie, I'm gonna, I'mgonna mastermind, call the
collective genius there'sthere's a bunch of really good
ones out there, but just beinglike the amount that you pay to
be like, the higher you have topay, almost I feel like the more
serious you take it and thenthe more you get out of it,
right?

(34:59):
So, like ours for collectivegenius, I think it's like 25 or
30 grand a year is what we payto me.
Now I'm like that's nothing todo, that's like one deal extra
that we get.
And it's not even about theinformation.
Like when I go to the meetings,it's four times a year.
It's an investment of time andenergy you know, talked to or

(35:21):
gotten to know over the years.
I'm like, hey, what are youdoing for this, what are you
doing for that, what are youdoing for this?
It's not even like thepresentations a lot of times, or
the information.
It's just like those sidebarrelationship conversations that
you have and and you just, andthen it's like oh, like it's a
mind expander.
A lot of times it's like whoa,if this guy can do no disrespect
to that guy, but if he, I gotthis, I got this.

Speaker 2 (35:44):
It speaks to the confidence as well.
It's like, hey, like I'm, I'mwatching, like you, you watch
from behind the scenes a littlebit and you're like, okay, if
they're implementing this, ifthey're having that much success
, I, I feel like I might be abetter operator, or whatever the
case is Like.
I think I can work with this alittle bit, and then you just
implement.
And that's where I think somany people lack the skill of

(36:06):
implementation.
So it takes a little bit ofconfidence and desire and
know-how to be able to do somethings, but at the end it's a
fairly simple business, as longas you can take some action.

Speaker 1 (36:18):
Yeah, yeah.
Now you guys are pretty focusedon flips.
You've got some rentals andstuff we talked a little bit
about that are a little bitsprag, but most of your stuff is
flip.
Is that what you foresee thefuture looking like for you, or
what does the future look likefor you and your business?

Speaker 2 (36:31):
Yeah, it's like for us, we're, we're it's kind of a
up in the air question as ofright now, but ideally and as
you know, the story is like okay, you, you can scale the
business, you can keep scalingit.
You need people and everythinglike that, systems and processes
in order to do that.
But flipping and wholesaling itis very much a job, like it's.

(36:54):
You're only gonna to profit offof what you've contracted from
the month before or a couplemonths before.
And that's where I'm like okay,I'm young, so I don't mind
doing it, I absolutely love itactually.
So I love the chase, findingthe next deal, flip to the next
house.
But I think in the longer term,we're slowly acquiring rentals

(37:16):
to not necessarily to be like,hey, this is now income, we're
solely focused on this to payour monthly expenses or
lifestyle or whatever, but we'rejust slowly acquiring the
rentals to then help mitigatesome of that cost in the future.
So, whether it's on the singlefamily rental side or like small

(37:37):
multifamily, we have somestorage units, acquired a
commercial building and thenwe're picking up a set of 10
single family rentals.
Nice, I like that side of thebusiness to a certain extent.
No, I'm not managing any ofthose properties.
Yeah, so it's a little bit morehands-off.
We are still generally all ofthe projects that go on there,

(38:01):
okay, just to make them a littlebit more turn-off.
We are still, like, generally,all of the projects that go on
there, okay, just to make them alittle bit more turnkey when we
hand them off to propertymanagement.

Speaker 1 (38:05):
Yeah, well, that's nice.
That's a cost savings too,because property management
they're most of them.
I found actually I just had oneunit, we had to turn it.
Twenty two thousand dollars,carter, to turn this.

Speaker 2 (38:15):
Yeah, it was bad, I guess but I was like, I was like
that sounds that soundsridiculous for a two bedroom
apartment.

Speaker 1 (38:21):
We spent 22 grand.
So I had a contractor of minethat would do some flips for us
go out there.
It was pretty reasonably priced.
And then I had just a couple offlooring contractors go look at
it because I thought theflooring price was way too high
and I was like you know whatProperty management came back?
Actually a little cheaper thanthe total of the other other
things.
So it was good to check themthough, correct.

(38:42):
All right, because this seemedout of line, right, but I
checked them and I was like youknow what, go ahead and take
care of it.
I'll have to coordinate it.
Then you guys knock it out,deal with the payments and the
W-9s and all the crap.

Speaker 2 (39:00):
And that's where, like on our side, with the
flipping experience, like I, Igenerally know our, our prices
quite well.
So whether I'm walking a place,um, to make an offer, or I'm
walking it to keep it as arental, it's like I have a
pretty good understanding ofwhat this should cost.
Yeah, it's like, if we haveproperty management give us an
estimate, I'm like, okay, thatseems a little bit steep.
Yeah, we'll send our guys in,get things done in a timely
manner and then then move onfrom the place or just re-rent

(39:21):
it or whatever the case might be.
So that's helped out quite wellon the buy and hold side of
things, and I'm actuallyextremely grateful for that,
because it's like without it andI know people always have the
questions like well, how do youknow how much rehab costs are
going to be, or how do you knowif you're going to be on budget
over budget, or what thismaterial is going to be, or how
do you know if you're going tobe on budget over budget, or
what this material is going tocost it's like, well, it's a

(39:42):
little bit of experience, alittle bit of talk to
contractors pricing out materialyourself.
Go to menards or lows or homedepot or whoever you decide to
use.
Yeah, and then you can get ageneral idea on how much of this
is going to be labor versus howmuch is going to be actual
material cost.

Speaker 1 (39:57):
Yeah, yeah, and I think that's think that's
important on any type of ifyou're going to try to self
acquisition, like if even for uswholesaling, our guys got to
know what price of rehab isbecause they got to know who's
our customer it's you right, orit's somebody else that's
looking to flip.
What are you guys going to haveto put into this thing?
And then how do we make sureyou guys still Exactly and
you're looking at a price thateverybody can win at, and so

(40:18):
those prices keep changing, likethe flooring price.
I kept telling my guys I'll seetheir budgets and I'm like guys
, you got to budget more forflooring nowadays, like it's
more expensive than it was twoyears ago, like you're still
running two-year-ago numbers.
You got to tighten it up.
So it's a constant adjustment.
That's the moving needle allthe time.
Right, and we know that rehabrentals doesn't matter.
You need to know what yourrehab costs are, because that's

(40:40):
going to affect everything ofhow you're, how you're
evaluating what is a good deal.

Speaker 2 (40:42):
And what's not a good deal, right, exactly.
And that's where I'm like.
I always tell some of the guysthat work with us like you, you
can probably afford to be off ona rehab by 10%, like overall
maybe it's a three or $4,000difference.
Not a huge deal breaker.
$4,000 difference not a hugedeal breaker.

Speaker 1 (41:02):
But if you're off on a like an ARV by 10%.
Yeah.

Speaker 2 (41:03):
That's a big.
We have a problem.
Yeah, now, now we have an issue.
I'm like now this goes from agreat deal to very mediocre or
looms of money.
I'm like we can't afford to dothat.
So it's like there there'scertain things that there is a
little bit of wiggle room withUm.
But overall, if you can naildown those initial buy price or
resale price, you should be in asomewhat decent spot and you

(41:25):
can make it work.

Speaker 1 (41:26):
And I would say you have a competitive advantage
then on the rental side ofthings too, because you're able
to you understand your rehabcosts your turn times can be a
lot quicker than somebody who'srelying on third parties to get
it done, and you can make offersa lot more confidently knowing
your rehab numbers.
I feel like one of the biggestthings we did Carter, I don't
know if you were at this meetingor not, but one of the REI
success meetings, we broke downa flip that we did yes, you

(41:48):
remember that and we gaveeverybody the worksheets,
different tables, and we hadeverybody come up with their own
rehab budgets and it wasfascinating to see the
discrepancy in rehab numbers.
Fascinating to see thediscrepancy in rehab numbers.
Some people were at like 30grand.
Other people were at like 90grand for the same scope of work
.
They're like whoa.
No wonder why some peoplearen't buying deals Like you're

(42:09):
running your numbers way off.
And our actual rehab was 17,000,I think on the one that we gave
, and nobody was at 17.
They were all way above, whichis probably good.
If you're out there writing adeal, you want to be a little
bit over.
But yeah, 90 grand, you'renever going to get a deal.
You're never going to get adeal that way.

Speaker 2 (42:23):
And then they make offers based upon them and it's
like, well, why am I $40,000lower than the other investor
who offered on this deal?
It's like, well again, if youdon't necessarily know how to
run your numbers and it's justhonestly, it's a conversation to
be had with other, maybe it'sexperienced investors in the
area or contractors or what haveyou.

(42:44):
It's like pick your poison onthat side.
But if you just have thoseconversations, yeah, and it
takes 15, 20, 25 minutes, 30minutes that someone probably
would be willing to share theirtime with you to help you run
through some numbers and Ialways give that on my side.
It's like, hey, if someonequestions, feel free to reach
out.
Like I can run through a wholeentire like scope of Romano or

(43:06):
rehab costs based upon photos,video.
I could, once you do it a fewdifferent times, you can pretty
much do it based upon that.
And I always recommend, likepeople, reach out to someone
that you know or trust or likelike that always helps.

Speaker 1 (43:20):
And I I always used to tell people, hey, get a
contractor and, like, go throughsome of the properties together
.
But then I was like I figuredout some of the contractors were
not the right contractors.
I talked about mentors before.
Now you got a guy who's threetimes the price of somebody else
you could get, and now you'rerunning all your numbers off of
that one contractor's number.
And you're like, gosh, I can'tget a deal.
These numbers are too high,people want too much money for

(43:42):
the properties and you're like,well, how did that guy get it
and make money on it?
They're doing something you'renot doing right, and so that's
something I'm always trying toget across to people too.
Is people like I've had peopleon our buyers list for four or
five years.
They've never bought a deal,and I'm like you can't possibly
say that we did 140 deals lastyear.
Other investors bought 140deals from us and made money on,

(44:05):
I would assume, a vast majorityof those oh for sure.
Yeah, so they're doing somethingyou're not doing.
So, like you said, I would tryto figure out.
What are they doing?
How are they running theirnumbers that you're not doing
Because you're missing out.
100% of zero is zero and you'remissing out on a ton of deals
that you could be making somepretty good profits on.

Speaker 2 (44:23):
And then they either make excuses for that inaction
or whatever.
It's like oh, it's overpricedor whatever the case is,
depending upon the riskthreshold.
It's like you can't expect tomake at least in my opinion,
like in each your own you can'texpect to make a $50,000 pop on

(44:43):
a deal that's necessarily beingwholesale.
It's like you're going to makesomething but it's like yeah,
everyone has to make money inthis transaction.
The wholesaler has to makemoney, the seller has to make
money, you have to make money asa flipper or landlord.
You can't expect these hugewindfalls, especially if you
have zero overhead going into itRight, you have no marketing

(45:04):
costs, you just get in an email.
Yeah, and people who think thatway.
I always think well, yeah,everyone would love that
business model.
If you can make 50 grand a popfor not doing anything,
wonderful, sign me up right.
Yeah, but it's not realistic,like there's gonna take either
follow-up on your part, ormarketing or advertising or

(45:27):
relationships or whatever.
Yeah, in order to do that on aconsistent basis, I should
correct yeah, you'll get.

Speaker 1 (45:32):
That's the that I've seen ruin people too.
Carter is they get one gooddeal from from us or from
another wholesaler.
They make a a $50,000 popbarely doing anything, and
they're like this is how it'sgoing to go every time.
And then they're underwritingall the deals with those numbers
and they're like all thesedeals suck.
I would only make $25,000 fordoing nothing.
I can't.

Speaker 2 (45:52):
Hey, when you're doing it and that's where like
for us on our side and I don'tknow if it helps the listeners
or viewers or anything like that, but we generally underwrite
things to depending upon themarketplace or competition on
the deal.
It's like, if I know otherinvestors are going in there,
we're going to have to be alittle bit more competitive.
Then it's like that flip profitshrinks down a decent amount to

(46:15):
offer a little bit morecompetitive offer and then it's
like we're possibly changing thestrategy on the backside.
It's like do we just clean thisout, relist it, or do we do a
lot lighter cosmetic remodel andtry to get away with it, or
what do we do?
So it's like you can't expectto make well, maybe you can,
depending upon your marketplace.
In Fox Valley I wouldn'tnecessarily expect to make 50

(46:39):
grand a foot Right.
It would be awesome.
Yeah, it would be amazing.

Speaker 1 (46:45):
Yeah, it would be amazing we wouldn't be doing
nearly as much volume.
Exactly that's what I was aboutto say.

Speaker 2 (46:51):
It's like you might have the one-off ones, but for
the most part you just have tobe a little bit more realistic.

Speaker 1 (46:57):
Yeah, how do you make that determination, I guess as
we start to get close towrapping here, Carter you know
like cause.
That's something I think isalways interesting for us is
like when we get a property andwe either we can't find a buyer
for it, so we just take it downourself or whatever, we're
always trying to end that battleof like well, do we go full
rehab or how are you making thatdetermination when you're
evaluating things?

Speaker 2 (47:24):
So I always and I've told this to numerous people I
look at our profit per month.
So if I'm like, if we can cleanand relist this place and make
I don't know 10 grand per monthor 20 grand overall or whatever
the numbers might be say it's anet $30,000 profit, but it takes
us three months, it'srealistically $10,000 per month.
So if I'm like, well, we haveto stick in $30,000 in this

(47:47):
renovation or $40,000, and we'restill going to make that net 10
grand per month and we might bebetter off just buying it,
cleaning it out, relisting it,making $10,000 profit in a month
that's how I always look ateverything.
And for us we've had somelonger flip projects that profit

(48:08):
less than that and I'm like,well, we would have been better
off cleaning this out orwholetailing it or finding a
wholesale buyer or whatever thecase is, and making the same
thing Interesting.

Speaker 1 (48:19):
I've never heard anybody use that.
That's how I think that'sgenius.

Speaker 2 (48:23):
And that's where it's like.
On our side, we normallyevaluate it from the get go of
hey, we're going to take thisdown ourselves, flip it.
Do we always do that?
Of course not.
Like it's whether we decide towholesale it before then just
assignment of contract or doubleclose it or whatever.
But that's how I evaluateliterally everything that we buy

(48:44):
, as long as it fits the thecertain profit threshold of
profit per month, that I'm happy.
If it doesn't, then we're justgoing to try to find a different
exit strategy from the the getgo.

Speaker 1 (48:56):
Interesting.
I see I thought you were goingto say something about like well
, if the comps are this, andthey're oh no, no, it's
something like I thought it wasgoing to be that way.

Speaker 2 (49:03):
Okay, nope, nope.
So that's cool.
Yeah, we're evaluatingeverything that we run across.

Speaker 1 (49:08):
I like that.
How are you running yournumbers?
So this is interesting becausecertain tools that you've got
created or done, or, and thenwhat are the numbers?

Speaker 2 (49:23):
that of how you're figuring out, is this a deal or
not a deal?
So I always take the um for us.
Like I said, we evaluate itlike we're going to buy it, so
it's um, and then we can kind ofdecide afterwards what we want
to do with it.
So I always take the arv.
I multiply that by about 90.
I subtract off 10 right off thetop for holding costs, real
start, real commissions, closingcosts, everything like that.
I subtract off our, so I havethe 90% value.

(49:45):
So if it's a 200 grand houseonce it's repaired, we're at 180
.
At that point I subtract offour rehab costs, we'll say it's
$20,000.
So we're at 160.
Then, depending upon how muchwe want to make, I subtract off
the profit margin.
That's literally how we alwaysarrive at a offer amount that
we're comfortable with.
Now.

(50:05):
If it needs more renovationwork, we want to make more money
.
If it needs less renovationwork, we can afford to make less
money.

Speaker 1 (50:11):
Very interesting dude .
We use the exact same thing.
It's, that's one.

Speaker 2 (50:15):
It's the easiest yeah , yeah, it's the easiest way to
do, and and then like, of course, depending upon who the end
buyer is, they might be comefrom making 15,000 on the flip,
or they want to make more, right?
It's like I always leave that upto them because I don't want to
make or or put my thoughtpatterns in their head Like, hey
, you need to at least make 25grand on this place.

(50:37):
Most people are really happymaking less than that, right?
I'm like, hey, good for you,yeah, it doesn't even matter,
and if we can win on our side,if they can win on their side,
fantastic Awesome.

Speaker 1 (50:51):
Yeah, that was.
Caleb Hayes gave me that yearsago.
I don't know if you know Caleb,but I've talked to him a couple
different times.

Speaker 2 (50:56):
Okay, I've talked to him a couple different times.
Okay, not in super, super deepdetail, okay.
But yeah, when I was actuallythinking about making the
transition to KW, I was talkingto him a little bit, yeah.

Speaker 1 (51:07):
He's a beast.
He was one of our early mentorstoo.

Speaker 2 (51:09):
Yeah, he was doing a lot.
He's a genius, yeah.

Speaker 1 (51:12):
He was doing a lot of flips.
He was basically running likethe same operation you're
running now.
Now he's kind of, as we say,graduated, I guess, into that
commercial space.
I got to get him on here.
We've emailed back and forthabout getting him on here a
couple times, but he's a veryfocused individual.
But he's also very giving dude.
He's very, very giving of histime and he's an amazing

(51:33):
contributor.
But then he taught me thatformula.
I mean, that's literally thesame exact formula he used when
he was flipping about the sameamount of properties you're
doing now back in the mid-2010s.
If that's a thing I don't evenknow how you say it.
Yeah, no kidding.

Speaker 2 (51:46):
I think if he would have just kept everything oh my
gosh, I know.

Speaker 1 (51:49):
That's why I think he transitioned to commercial.
Now he's killing it.
He's doing a lot of officestuff which is kind of against
the grain, but I mean thosespreads are pretty massive.
When you look at the firststrategy and some of that stuff
on the value adds, I mean it'spretty wild.
You can pick some of the officestuff up cheap right now.
You get a little longer process.
You got to have a little bit ofcapital or some backing there

(52:10):
to be able to cover the vacancyfor a while.
But you get it rented out.
Man, you get some pretty sickleases.

Speaker 2 (52:18):
And so I got to get him on here and we got to break
that down a little bit.
Yeah, it's invaluable.
You can't even put a price onthat.

Speaker 1 (52:24):
But going back to mentorship, he was a guy.
Yes, I'm like this dude isliving a life I want to live.
He's flipping a ton ofproperties.
Like how do I get a meetingwith this guy?
Like I need to sit down this,and if you, if you do it all,
I'll sit down with you againnext month and we're like okay
we got to do it Like thisamazing, amazing person, so like

(52:45):
who would do that, who wouldtake that time?

Speaker 2 (52:47):
But it's so awesome.
It's amazing when people arewilling to do that.

Speaker 1 (52:51):
Yeah, he's a beast.
Well, Carter, I know we got.
You got some properties to flip.
You got sellers to talk to.
We got to get you out of here.
You've been very gracious withyour time as well today.
We always ask one little funquestion at the end.
The reason I started doing thisis we get people from out of
state who want to maybe investin the state, and so we'd like
to tell a little bit aboutWisconsin.
What is Wisconsin all about?
So do you have a favoriteWisconsin tradition or a place

(53:13):
you like to visit here in thisgreat state?

Speaker 2 (53:24):
Place I like to visit .
I was.
I was thinking about this, umhonestly in my wife and I, um we
, actually we just had our, ourwedding anniversary.
I think we're going on sixyears.
I think this was dude.

Speaker 1 (53:33):
You're not even doing it that long.
Yeah, I know, that's not eventhat long.

Speaker 2 (53:36):
You're not even double digits here for good I
know um, but no, we've beentogether for 13, so I I know
that okay, but what we, what wealways did on our, our, like,
dating anniversary.
Devil's lake um, oh yeah, mostamazing place like it's.
It's hiking, um sightseeing,and it's so gorgeous, so pretty.

(53:56):
If you guys like sightseeing, Iwould highly highly recommend
that Um cause like there.
There's really nothing elselike that in Wisconsin, at least
in my opinion.
So I would highly recommendthat to anyone who's wanting to
come to the state visiting,wants to do a little bit of
hiking, and it's gorgeous.

Speaker 1 (54:15):
I got to get back there, man.

Speaker 2 (54:15):
It's been like probably 15 years since I've
been at Devil's Lake and Ihaven't been back there's lake
and that's like when you're upin door county, so it's a little
bit different, but that'sequally as pretty.
I was, I was yeah, in my mindI'm like yeah, well, door county
, devil's lake, like they'rekind of a horse piece, but no,
it's devil's lake is probablyone of the unique spot it is.

(54:36):
It's like there's nothing likeit in the state.
So, yeah, I would agree,definitely encourage people to
to go there visit, if you likehiking, um, or anything like
that.
It's really, really pretty yeah, that's awesome dude.

Speaker 1 (54:46):
Well, fall time is coming.
Hey, it's a great time.
Get out there and the leaveswill be changing too.
Get a little crispy air, it'sperfect man exactly well, I
appreciate it, cory yeah, Iappreciate you, dude.
If people want to reach out toyou at all, what's the best way
for them to get a hold of you?
Carter?

Speaker 2 (55:03):
Yeah, carter Crowley, on any social media platform.
Can I give him my cell number?

Speaker 1 (55:09):
If you would like to.

Speaker 2 (55:11):
If you want to call me, text me, feel free.
I will respond as time permitson that side, but 920-252-2864
is my personal style.

Speaker 1 (55:21):
And Carter's a great follow on social media.
You do a lot on social dude andthat's part of your acquisition
strategy as well, so if you'relooking for tips on that, he
would definitely be a guy to gofollow out there.
If you guys enjoyed today'sepisode as well, please share
this with your audience, becausethat's a great way as I say in
every episode for you to letpeople know you're looking at
either getting into real estateor that you do real estate.

(55:42):
By you sharing this show, it'sgoing to help you bring in some
private lenders, maybe get acouple of deals, whatever the
case might be.
So share the show.
And again, if you are looking toget some deals, go to
wisconsindiscountpropertiescom.
Plug your info in.
If you're not ready to getstarted and you're just like,
hey, what's this real estatething about?
I've listened to an episode, Iwant to talk to somebody.
You can also just fill out acontact us form on there without

(56:02):
getting on the buyer's list yet, so you can go on the website
and do that and check out thenext show, because we're going
to have another good one nextweek, like we do every week.
Carter, appreciate you, man.
Hey, appreciate you, corey.
All right.