כישלון אינו יכול להתמודד עם דבקות במטרה

Today we’ll talk about the road to my first deal and the insights
#IzmahShavuo Yaron Yitzchak #post2
So as I already told, I started my real estate journey with the Project X family in search of the first property to flip in Kansas City Missouri.
I found a local, young and motivated realtor and we started working.
I would look for On Market deals on Zillow and he would run COMPS, go see and take pictures and finally submit an offer.
So we submitted over a hundred proposals and nothing came up, something was missing.
Even when we submitted offers close to the requested price and sometimes even higher than it, we were unable to negotiate a contract.
At that time I decided to treat an old sports injury in my knee and I remember from the recovery room an hour after the surgery, when I was still high on painkillers, I corresponded and spoke with realtors on the phone and gave them offers to purchase properties.
Now why am I telling you this? Absolutely not so that you think what a “hero” Yaron is. For those who haven’t noticed, I decided to open this post with a sentence that has accompanied me in recent years, a sentence that I think I read in the book “Think and Grow Rich” by Napoleon Hill (a life-changing book, I must say) and what I’m trying to say is that there is tremendous importance in the power of your perseverance in everything What you do in life and of course in real estate.
I really don’t mean that you have to persist in a “head against the wall” form, but rather, persist with “intelligence” and thought, control mechanisms and actually constantly examine what we are doing right and wrong and why, how we can improve and these are the changes we need to do in order to reach our goals and in short – KPI.
So if we go back to our story, after dozens of offers that did not result in a single deal, I started to develop a relationship with another broker (younger, 19 years old) and in less than a month and a half we were already on contract for our first property .
We quickly managed to raise the money for the purchase, expenses and renovation itself (later I will also add numbers) when the first middleman, Michael also participated and invested an amount of $50,000 of his money and my brother invested an additional amount of $30,000.
So we found a contractor after getting bids from at least 3 different contractors and hit the road.
The contractor began work and we entrusted Michael the broker to supervise the conduct and pace of the renovation – it is not appropriate for him to supervise the renovation because I trust him (nevertheless a relationship of conversations and messages on a daily level for almost a whole year) and the fact that he is also investing a considerable amount in the transaction and he will do everything in order That she will succeed – a mistake!
So the contractor worked diligently and Michael supervised, but I felt it was important, mainly for my studies but also for the management of the deal (after all, my first real estate deal), that I go and see things with my own eyes, and so I did.
I found a nice AIRB&B, (you won’t believe it, on the same street about 6-7 houses from our house) and just one morning I showed up at the house without informing the contractor that I was coming.
When I arrived, I noticed that the contractor did not do many things correctly, such as painting the house in a different color from the one we chose, assembling the kitchen cabinets on the opposite side, and all kinds of more and less essential faults that we “missed”.
After a period of a month in which I visit the house almost on a daily basis, and make sure to correct all those inaccuracies of the contractor with quite a few complaints and objections on his part, I came to the house again and this time to say goodbye to the team with coffee and donuts?, but something didn’t feel right to me, from a feeling of coolness that I received from the contractor, the kind that immediately turns on red lights for you.
Needless to say, not a day had passed since I left, and the contractor informed me that he would not be able to continue the work in the near future because “he has more urgent projects” and then he made sure to bring all the materials into the house and disappeared – in short, I was fired by my contractor.
In the end I brought in another contractor to finish the job (it cost me about $8K more) and two and a half months after the renovation was finished, the house was sold.
The closing day was when I was in the delivery room with my wife, the day after the birth I also went to the nearest notary to sign the forms.
I feel that when my daughter was born, I was also born as a real estate developer, but everything pales in comparison to the experience of giving birth and suddenly becoming a father?
2636 Madison Ave, Kansas City, MO 64108
Some numbers:
Purchase price: $65K
Planned renovation price: $50K
Price Actual renovation: $60K
Additional costs (closing and more): $18K
Estimated sale price after renovation ARV: $150K
Actual sale price: $147,500
So as you can see, I didn’t really see a financial gain from this deal but the gain in knowledge and experience is PRICELESS.
And now for insights:
1. Real estate is first of all people – it’s really not just land or a building with 4 walls. The faster you internalize this, the faster you will pave your way to success – always creating a WIN WIN deal/relationship for all involved.
As you receive value from people, always make sure that they also receive in return.
2. Not everyone who is nice to you and wants to help is necessarily good for you and the business. Surround yourself with professional people and know what the strengths and weaknesses of each team member are and act accordingly.
For that matter, the first realtor Michael was a very nice person and super A hard worker who jumped at every entry we wanted to check out but, he didn’t know how to negotiate and “make things happen” when we submitted offers through him (he would just send the offers without making any phone contact or any contact with the homeowners’ brokers) – as I already said, business does with people.
Another thing, he really didn’t know how to manage a renovation and certainly not me, and that was the mistake – another wise sentence I heard from the wonderful mentor Robert Shamain – “You don’t need to know everything, you just need to know who to call” and I say, just as a conductor of an orchestra should not To know and actually play any musical instrument in order to create masterpieces, so do we.
Our role as entrepreneurs is to conduct the orchestra.
3. The numbers in Excel must work but also give credit to your gut feelings.
4. Always make sure to coordinate expectations and be clear with your team members and everyone you do business with and of course, put everything in writing.
So, as I already mentioned, my partner Shlomi (who is also my little brother) and I, have changed our strategy and for the past two years we have been engaged in wholesale with a local partner, a complete set of call centers and virtual assistants in the Philippines and BOOTS in Kansas City and the surrounding area (in the states of Missouri and Kansas).
In the following posts I will discuss a little about the mindset and how to train it and also about the world of Holsling from my point of view and personal experience.
So to everyone who stayed with me, thank you for listening, it’s a huge privilege to write here and share.
I would love to hear from you, opinions and questions so feel free and see you in the next post.
In the photos, I am talking to mediators a second after surgery to replace the cruciate ligament in the knee and a little before and after the first flip.