Dave Rose has been flipping houses in San Antonio, Texas, for over 8 years. He is a firm believer in keeping it simple. His plan is to build a huge rental portfolio that will allow him to achieve true freedom.
Dave has been interested in real estate from the time he was young. He started as an adult with wholesaling, then started picking up rental properties in any condition and has continued to grow his real estate portfolio. He occasionally does flips to bring some variety into his routine.
Dave talks about being a pioneer and using the BRRRR Process, (Buy, Rehab, Rent, Refinance and Repeat) that helps you be in with little to no money on the deals if you buy them right.
Danny and Dave talk about how the deal volume and how the wholesale market is being driven up by competition and watered down product raising prices that caused Dave to shift from wholesaling to focusing on building a rental portfolio and doing more rehabs.
The power of networking is what helped Dave get started in the industry and when the opportunity presented itself, Dave wasn’t scared, didn’t hesitate, he jumped in and hasn’t looked back.
He started on a 100% commission based structure working as acquisitions for both buying and selling. This experience helped him understand the industry and that many people don’t “think like he does” and are willing to take different offers on their properties. He learned a lot about making offers and ultimately that you don’t know what people are willing to accept, especially when they are treated with respect and care.
Dave says, “we aren’t here to make their decisions, we are here to solve their problems.” when it comes to talking with potential sellers and before he goes about making an offer on the property. Danny reflects on how important it is to connect with motivated sellers to understand where they are coming from to really serve a need and help them. Only around 10% of people they buy homes from are in a really sticky situation where they need their homes purchased right away. A small percentage of the overall. Understanding these components can really help you understand how to convert to more deals when making offers.
They discuss an example of a property where Dave worked with the seller to give an extended closing date and how things like help with moving, help with finding a place to go are factors in the seller’s decision making process. Dave takes a more personal approach instead of a cut and dry business approach when making offers and conducting his business.
Money isn’t everything, there’s a lot more to the business than just making money – they discuss how they are in the business of truly helping people and how this factors into every offer they make.
Dave still goes on appointments and discusses his approach to this more personal than business approach. He talks through several examples of how he’s able to connect with the different sellers he meets with on a regular basis. Danny and Dave talk about strategies to still be able to spend the time with potential sellers rather than just treating the deals like a conveyor belt and how this has helped him when making offers. . Especially when you have a team working for you and you aren’t on every call.
Dave speaks about how majority of his business at this point is repeat, word of mouth and referrals, he credits a lot of this to the personal connection he’s making with the sellers and his ability to hear and help them.
Danny asks Dave for any predictions for the changing marketing upcoming and how that might affect them making offers. They discuss how their strategies and integrity can help them weather the storm. Dave predicts the market slowing and prices dropping, he predicts that certain areas that are really overpriced will come down and will be helped by the interest rates to bring that down. He doesn’t expecting anything like ’08-09 but more of a healthy dip in the market.
Dave is wanting to buy more rentals and do more flips moving forward, isn’t as interested in owner finance. Dave is more interested in building his portfolio so he has a steady stream of regular income. He feels like rental properties are the path to creating his true freedom. He’s looking to bring in around 120 rentals in 5 years and wants to be at 300 rentals in ten years.
Dave and Danny talk about different types of rental properties he seeks out and what is in his portfolio. His portfolio carries a blend of different types of properties including multi-unit and single family homes in all different areas of the city.
Dave talks about what materials he uses in his rentals. He uses IKEA cabinets in all of his rentals and actually uses quite a bit of materials from IKEA. He buys higher quality materials that are used every day like door handles, and even uses solid doors. Even though they cost more up-front they end up saving money in the long run. He recommends to make sure there’s a clean out on your sewer line because they will always back up.
They talk about how the process doesn’t change from a flip to a rental, putting in floors is putting in floors. Take it room by room and follow the process.
Dave talks about how he doesn’t want a big business so he’s not looking to bring in a big staff but is looking to hire someone to help with property management and possibly some sales and acquisitions.
Dave had a first look demo of the new FlipPilot software so he reflects and gives his first reaction to seeing the system. He says that what’s out there to manage REI businesses isn’t really that great, and says he saw a very well polished system. He said the system was thoughtful and seemed to include a lot of functionality. Dave mentions the value of what you will be getting with all of the different parts at the cost and that at first glance if you utilize the program it should make you 10 fold what you pay for it if you use it properly.
Dave’s contact information: 210-632-1432
This is my simple request: If you enjoy the podcast and look forward to hearing a lot more episodes, I would be very grateful, happy, beholden and otherwise indebted to you to rate and review the podcast on iTunes.
It’s your choice and I do not want you to feel at all obligated. But I’d love it if you would subscribe and leave a rating and review.
Ratings and reviews allow the podcast to be seen by more people, which will help me achieve my goal of helping as many others as we can to get started in the house flipping business and change their lives.
Not sure how to leave a rating and review? Click here to view the instructions (it only takes 2 minutes)
There will be a brand new episode every single week, so be sure to subscribe and receive each episode as it’s released.