Case Study – Glenn Davis – Tampa, Florida
I believe the best way to learn the business of real estate investing is to hear how others have done it.
When these interviews were recorded, I asked Tom, the interviewer, to ask questions that would help the viewer see how these folks got started.
I wanted to hear the struggles, the successes and a clear path and explanation of what they had to do to make these deals happen.
I did NOT want them to be a bunch of people telling you how wonderful Joe Crump was. I wanted content, examples and real life experiences.
I hope we succeeded.
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Read Transcript for “I Work At Home And Walk Down The Hall To My Office”
Glenn: My name is Glen Davis. I live in Tampa, Florida. The first real estate transaction I did using Joe’s technique was a small home in the Tampa area in the Bay Area that we did a lease option memo on and found a couple that were moving out of a mobile home and wanted to get into home ownerships and we put them in a house.
Glenn: On the first deal, I made about $3,000. It was not that difficult. The only difficult thing about it for me is that it was somewhere out of the immediate area I was in, so it was about a 45 minute to an hour drive, but once I met the people there at the property and they looked at it without my being there, and then met them at the property and we did the paperwork, it didn’t take long at all. It wasn’t very difficult.
Glenn: The best deal… I’ve done a couple of pretty decent deals. The most money I’ve made off of any one deal has been $9,000. Then I’ve had another deal that was pretty interesting: it was a pretty small house and the sale price on the house I believe was $4,000. I took in $11,500 but it wasn’t all for me.
Glenn: The reason I say I took it in is that Joe teaches that we don’t dictate to the person how much money they should have down, so this little house, had I been giving them the amount of money they would have had to put down on the house, I would have told them maybe $3,000 plus the first month’s rent which was $750 so, by not dictating the amount of money they should have down on the house, I threw it back to them and they came up and found a young couple where one of their grandparents I think died and left a little bit of money to this young person and they put up $11,500 to move into the house.
Glenn: Now, I had to restructure the deal because they only wanted $750 a month and part of my taking the $11,500 was that they would only pay $600 a month for the three years, and so I wrestled with the idea of, ‘Should I pay the owner the difference over 36 months, $150 a month times 36 months, or should I hold the cash and make up the difference every month?’
Glenn: I held the cash and put it into the business and every month they issued me a check for $600 and I sent $150 to the owner of my money plus the $600 that they received for a total of $750. With the same owner, I sold another house that she had to a couple who were already in the house, and so I made up $100 of the $150 because the couple that was in the house couldn’t afford much.
Glenn: I got them to pay $150 more than what they were paying, so another $50 over the $600 that they were paying is going to the owner and she’s receiving $650 of the $750 that I get every month from them, so I made up $100 of the difference on the other deal, if that makes sense – by selling the other house that she had.
Glenn: I’ve been using the “Automarketer” and I have a virtual assistant also. I used to use Joe’s program which was the “List Builder” and was the predecessor to the Automarketer. List Builder sends out leads to for rent ads. And as Joe tells you, the challenge with List Builder was that it also sends out the leads to apartment complexes, so it was sending out a lot of leads to those. I would get calls from property managers or apartment complex managers that would tell me, ‘This is an apartment complex,’ and yada, yada, etc.
Glenn: I have a virtual assistant in India, a person that was referred to me by another one of Joe’s students. That person’s team sends out individual emails to for rent ads they get off of Craigslist. They skip any apartment complexes or anybody else that I don’t want them to send to. The Indian economy is a lot different and so I only pay them maybe a couple of bucks an hour to do that. So, that’s part of the marketing.
Glenn: The other part I was using was Joe’s “Automarketer”. I’ve signed up about 40 or so properties under the lease option agreement memo. I haven’t sold many; I’ve lost some deals.
Glenn: At present, I’m probably making about $75,000-$80,000 a year. My goal as a real estate investor is to acquire and pay for 10 to 15 properties over the next 8-10 years – to have them completely paid for and to be able to use that rental income from them to supplement my retirement.
Glenn: No more spouse at the moment. For my lifestyle, I work out of the house. For the most part, I’ve always been self-employed – I work out of my house. It’s just like Joe said: ‘You get up and you walk down the hall to your office.’
Glenn: It gives me a lot more control of my time. I can schedule anything I need to around the business and any part of the business around the other things I want to do. I’m putting in more time than I want to eventually put into it, but I’m moving it to the next level also, which is another goal that I had this year – to outsource more of the business and do less of it myself, but still to make more money doing it.
Glenn: I plan on outsourcing more and increasing the marketing I’m doing. What I really want to do is to hire one or two professional telemarketers that can really pick up the volume of the leads I start generating and have them sift through them and then take most of the difficult ones to close myself.
Glenn: The advice that I would give them is to be prepared to do a ton of marketing. It’s a numbers game; I’ve been discovering that. The more marketing you can put out there that you can follow up on, the more successful you’re going to be. My advice would be to be prepared to do a ton of marketing and to follow up on that marketing.
Glenn: I’m an information junkie. I’ve learned a lot from Joe and his program. Real estate is a great business. It’s not going to work itself – you have to work it, but the benefits of the business can be tremendous if you give it the chance. Basically that’s it – you can have a great business, and you can make a ton of money. It’s going to take some effort in the first two or three years but after that, it should be pretty much on an easy path.