How I Bought a $1.2M House for $560K (Real Estate Secrets) | Donovan Camarotti DSH #1009

Summary

Digital Social Hour Podcast Summary

Episode Title: How I Bought a $1.2M House for $560K (Real Estate Secrets) | Donovan Camarotti DSH #1009
Release Date: December 24, 2024
Host: Sean Kelly
Guest: Donovan Camarotti

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Introduction

In the 1009th episode of the Digital Social Hour, host Sean Kelly sits down with real estate entrepreneur Donovan Camarotti to delve into Donovan's impressive journey in the real estate market. Donovan shares his remarkable experience of purchasing a $1.2 million house for just $560,000, unveiling the strategies, challenges, and insights that fueled his success.

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Donovan’s Real Estate Journey

Donovan begins by recounting his entry into the real estate industry during his early college years.

[01:30] Donovan: "I really kind of just started, you know, looking into it when I was a senior in high school. Then, like, the first week in college, I got my first property,"

He explains how his initial investment involved saving diligently and taking significant financial risks to secure his first property. This early venture taught him the fundamentals of buying, selling, and flipping houses.

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Strategies for Success

A cornerstone of Donovan's strategy is his focus on fixing and flipping properties. He emphasizes the importance of identifying undervalued properties that require minimal renovations.

[02:08] Donovan: "It was cheaper, it was easier. It was like a condo, so it was, like, super easy to get into. And it was a light renovation. So it was like a good first property."

Donovan's ability to quickly recognize market opportunities allowed him to flip his first few properties profitably within months, setting the stage for exponential growth.

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Raising Capital and Scaling Up

As Donovan's portfolio expanded, he encountered the necessity of raising additional funds to sustain and accelerate his investments.

[05:14] Donovan: "I kind of had to raise money just out of necessity. I was like, oh, I can do this and do 100 properties. Why stop at 1 or 2 or 3 or 4?"

By learning how to secure financing and assemble a reliable team—including project managers, acquisition specialists, and assistants—Donovan was able to scale his operations from a handful of flips to nearly 40 active projects within three years.

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Challenges Faced and Lessons Learned

Donovan candidly discusses the setbacks he encountered, including a significant loss on his third flip.

[05:43] Donovan: "I lost, like 50 grand on my third flip."

This experience underscored the importance of hiring trustworthy contractors and avoiding the temptation to select the cheapest bids, which often lead to subpar work and additional expenses.

[07:39] Donovan: "But I would say like the biggest lesson I learned is not hiring bad contractors..."

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Managing Contractors and Interacting with HOAs

Effective management of contractors is pivotal in Donovan's business model. He advises against opting for the lowest bids to prevent future complications.

[08:00] Donovan: "You don't want to go with the cheapest guy because he's probably under bidding it for a reason."

Moreover, Donovan shares his interactions with Homeowners Associations (HOAs), highlighting both positive and challenging experiences.

[15:45] Donovan: "I had to call the cops. But thankfully, she didn't, but yeah."

His narrative includes dealing with squatters and navigating HOA regulations, which provided him with valuable lessons in property management and legal protocols.

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Market Insights and Business Adaptations

Donovan provides an analysis of the Florida real estate market, noting its fluctuations and the impact of interest rate changes on property listings and sales.

[19:35] Donovan: "It's definitely slower than it was, you know, like last year, year before. But it's not horrible."

To mitigate risks associated with market slowdowns, Donovan diversified his strategies by exploring novation, a method that reduces exposure by selling to retail buyers rather than investors.

[23:19] Donovan: "They don't need to profit most of the time."

This pivot allows for greater flexibility and resilience in a volatile market.

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Diversifying Income Streams: Supercars and Hobbies

Beyond real estate, Donovan discusses his investment in luxury vehicles as a form of social proof and networking.

[25:58] Donovan: "I got a McLaren 570, which is like, you know, entry level. I wrapped it orange because, you know, classic."

He explains how owning high-end cars has opened doors to new business opportunities and connections within affluent circles, enhancing his real estate ventures.

Additionally, Donovan shares his passion for off-roading and snowboarding, illustrating his balanced approach to work and personal life.

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Personal Development and Future Plans

While Donovan hasn't delved deeply into biohacking or personal development, he acknowledges its importance as he continues to grow his business.

[33:00] Donovan: "Yeah, that's what everyone tells me."

Looking ahead, Donovan plans to launch a mentorship program to guide aspiring real estate investors, leveraging his extensive experience to foster the next generation of entrepreneurs.

[33:15] Donovan: "I probably will start some type of mentorship later this year."

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Conclusion

Donovan Camarotti's journey in real estate is a testament to the power of strategic investment, resilience in the face of challenges, and the importance of continuous learning. Through insightful strategies and personal anecdotes, Donovan provides valuable lessons for aspiring entrepreneurs aiming to thrive in the competitive real estate landscape.

Listeners are encouraged to connect with Donovan through his Instagram @camarodehomes.com for more insights and updates on his real estate ventures.

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Notable Quotes:

• [01:30] Donovan: "I really kind of just started, you know, looking into it when I was a senior in high school..."
• [05:14] Donovan: "I kind of had to raise money just out of necessity..."
• [05:43] Donovan: "I lost, like 50 grand on my third flip."
• [08:00] Donovan: "You don't want to go with the cheapest guy because he's probably under bidding it for a reason."
• [23:19] Donovan: "They don't need to profit most of the time."
• [33:15] Donovan: "I probably will start some type of mentorship later this year."

---

This episode offers a comprehensive look into Donovan Camarotti's real estate strategies, providing actionable insights and real-world experiences that can inspire and educate both novice and seasoned investors.

Transcript

[Alex Camarati]

The holidays are about spending time with your loved ones and creating magical memories that will last a lifetime. So whether it's family and friends you haven't seen in a while, or those who you see all the time, share holiday magic this season with an ice cold Coca Cola. Copyright 2024 the Coca Cola Company this.

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[Alex Camarati]

Recently, too, and the way it went down is they were listed on the market for 935 grand, then they dropped it to 850. I offered them 550.

[Donovan]

Damn.

[Alex Camarati]

And they were like, nah, we can't do 550. I was like, all right, what can you do? They're like, we'll do 560.

[Donovan]

You lowball.

[Alex Camarati]

Yeah. Wow.

[Donovan]

So you got that for, like, 40 off?

[Alex Camarati]

Yeah. Put like 250 grand into it just to make it nice and, like, Yeah, I want to, but, you know, it's solid property, dude.

[Donovan]

You gotta steal. You doubled your money overnight. All right, guys, Donovan, camaraderie here. Today we're gonna talk Airbnb, right?

[Alex Camarati]

Yeah, Airbnb Flipping. Whatever, man.

[Donovan]

Let's go. And you're a young person to be in this space.

[Alex Camarati]

I am.

[Donovan]

Did you start at, like, straight out of high school or.

[Alex Camarati]

Yeah, I really kind of just started, you know, looking into it. You know, when I was, like, a senior in high school, I needed to figure out what to do. Then, like, first week in college started. You know, I got my first property first week of college, and just been doing it ever since.

[Donovan]

Wow. How'd you afford that first one?

[Alex Camarati]

Saved up some money. Had to, you know, basically just put everything I had into it, and then, you know, just bought that one, ended up having no money, so sold it. Then I had some money, and I bought a few more and just kind of kept doing it, like.

[Donovan]

Oh, so you were able to flip it quick?

[Alex Camarati]

I was, yeah, Within a few months.

[Donovan]

Nice. And what. What gave you that conviction to pick that specific property?

[Alex Camarati]

Well, you know, it was. It was cheaper, it was easier. It was like a condo, so it was, like, super easy to get into. And it was a light renovation. So it was like a good first property.

[Donovan]

Nice. And how'd you learn how to like, fix it and everything?

[Alex Camarati]

Honestly, I kind of just figured it out by doing it. I. You know, my parents had like this handyman that works for them, so he kind of just like did the renovation, had to find a couple other subcontractors and just basically figured it out.

[Donovan]

A good handyman is important, I feel like, for that business, because you get ripped off with certain guys.

[Alex Camarati]

Yeah. Certain contractors take advantage of people, especially if they don't know, like, you know, dude, I've been.

[Donovan]

I've been getting wrecked out here in my house. Have you, bro? Because I just bought a house and I've never had to like use contractors before, but a lot of them be highballing and you have no idea what to compare it to.

[Alex Camarati]

Right.

[Donovan]

You're just overpaying.

[Alex Camarati]

Yeah. If you have like no reference, you know, you'll pay 100 grand for something that'll cost you like 40, 50. Yeah, you know, normally actual cost, I.

[Donovan]

Just paid like 12k to fix a leak.

[Alex Camarati]

Oh, gosh.

[Donovan]

I got wrecked.

[Alex Camarati]

Yeah.

[Donovan]

Yeah. That should be like a couple thousand max, right?

[Alex Camarati]

Max.

[Donovan]

Max, yeah. So you live and you learn though, man.

[Alex Camarati]

100%.

[Donovan]

So is your main strategy to fix and flip?

[Alex Camarati]

Yeah, I do have like one Airbnb and then one that's in the. In the process of being built.

[Donovan]

Got it.

[Alex Camarati]

But fix it is my bread and butter.

[Donovan]

I feel that. What do you think about this Section 8 stuff?

[Alex Camarati]

Section 8? I mean, you know, it's good for some people, and I think it works for some people, but I don't think it's really something I. I'd want to get into. I mean, I know people can make a lot of money, but not so much my thing, I think.

[Donovan]

Yeah.

[Alex Camarati]

You know, it seems attending classes, you know, lower level people, dealing with it.

[Donovan]

Seems kind of too good to be true. The ads I'm seeing for it, I.

[Alex Camarati]

Mean, it's nice because the government will pay the rent, basically, or they're guarantee it. But then, you know, you get just the lower class of people, which, I mean, it's kind of unfortunate to say, but like, me personally, I would rather kind of just deal with businesses and, you know, I'd rather rent to a business and, you know, they have a, you know, guarantee on it and it's just a lot easier. Yeah, so you're talking like B2C.

[Donovan]

You're talking like the upper middle class people.

[Alex Camarati]

Yeah, people that are a little more stable, a little more, you know, they just Are comfortable.

[Donovan]

Yeah.

[Alex Camarati]

You know.

[Donovan]

So how many units do you have now?

[Alex Camarati]

So I currently have just under 40 flips on the books right now. And then, you know, the two Airbnb as well.

[Donovan]

That's so fast. Because you started recently?

[Alex Camarati]

Yeah, yeah, within the last three years.

[Donovan]

Holy crap. That's like 15 a year almost flips.

[Alex Camarati]

Yeah, well, I'm on track to do about, like, 80 flips. 80 to 100 flips, you know, in the next 12 months. And then, you know, just kind of like, scaled up. So like, my first year, I did like nine flips. Second year, maybe like 22. And then now it's just like, you know, totally took off.

[Donovan]

Damn. Exponential growth. So what was that thing that. Did you change anything from what you were doing?

[Alex Camarati]

Well, so between year one and year two, I learned how to raise money. Right. Because, like, you can only do so much in real estate, just, you know, money wise. Right. And then from year two to year three, I figured out how to hire people. So I hired project managers, I hired acquisition. I now have an assistant. You know, disposition as well. So everything is, like, kind of covered, essentially. So that just allows us to scale like crazy.

[Donovan]

Yeah, I feel like raising money is really hard to figure out, but once you got that and you have a good ROI system in place, like, why would you not continue investing?

[Alex Camarati]

Well, I kind of had to raise money just out of necessity.

[Donovan]

Yeah, you didn't have any.

[Alex Camarati]

You know, my fifth or sixth flip, you know, I already had a proof of concept. Like, I know I could do it. And then I just, you know, ran out of money. So I was like, okay, hey, I need, you know, 50 grand for a down payment on this house. You know, paid someone interest and, you know, just basically kept doing that. I was like, oh, I can do this and do 100 properties. You know, why stop at 1 or 2 or 3 or 4?

[Donovan]

I feel that. Any flips where you lost money, and if so, what was the big lesson Learned there?

[Alex Camarati]

Yeah, 100%, dude. I lost, like 50 grand on my third flip.

[Donovan]

Oh, wow.

[Alex Camarati]

Yeah. Which sucked. Right? Because basically what I had made, I lost. But the good thing is that that.

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[Alex Camarati]

Know, didn't sell for like a year. So with the holding costs and everything, that's why I lost. But I was able to flip other houses during that time. So I kind of just made up for it.

[Donovan]

Got it.

[Alex Camarati]

And I would say like the biggest lesson I learned is not hiring Bad contractors are not always hiring the cheapest, you know, bid. Obviously you don't want to get ripped off like we were just talking about. But you know, you don't want to go with the cheapest guy because he's probably under bidding it for a reason. Either he doesn't know what he's getting into or he's just going to put in cheaper material and not do as good of a work. You know, so that that's what bid me on that.

[Donovan]

Right. So maybe get someone in the middle of high and low.

[Alex Camarati]

Like if you get three bids and you got one guy at 10 grand, one at 12, one at 15. Go with like a 12 guy.

[Donovan]

Yeah. That's probably the safest play.

[Alex Camarati]

100%.

[Donovan]

Yeah. Because if you go with the cheapest, it sounds good but then you got to pay for the fix.

[Alex Camarati]

Right. And then it's double.

[Donovan]

Right? Yeah, that happened to me.

[Alex Camarati]

Yeah. Expensive guy to do it.

[Donovan]

Yeah. I feel that Man. So it took you how long to be profitable after that? After that 50k loss.

[Alex Camarati]

So, I mean, it was kind of. It was profitable, you know, during that time. Right. Now, obviously, that hurt the P. L at the end of the year, but we were flipping other houses during that time, so, like, you know, we were able to survive it.

[Donovan]

Got it. So this. This business is interesting then, because a lot of businesses, you're not profitable for a bit.

[Alex Camarati]

No, and I will say, like, I didn't really take any profit and any distributions, you know, other than very small ones, for like the first year, year and a half, you know, and then only recently I started taking big ones, and I was actually able to take big ones comfortably.

[Donovan]

Right. So you got to lock in for a year and then minimum.

[Alex Camarati]

Minimum year, yeah.

[Donovan]

In this business, did you have a mentor?

[Alex Camarati]

You know, I have a few mentors. Right. And I kind of. I get different things from every one of them now. None of them being like one on one, per se. Um, but, like, you know, I think you had him on the podcast, Ryan Pineda. Yeah, he's been a big one for me.

[Donovan]

Nice.

[Alex Camarati]

Right. You know, I have the guy that runs our local ria you know, he's taught me a lot just by being in there and listening to what he has to say. You know, I learned a lot on YouTube, honestly.

[Donovan]

YouTube University, baby.

[Alex Camarati]

Yeah, for, like, probably at least like nine months. Maybe a year before I really jumped into it, I was just watching YouTube, learning everything I could about, like, fixing and flipping houses, you know, how to talk to sellers, how to run comparable sales, you know, how to estimate rehab costs, everything like that.

[Donovan]

Yeah. And you won't learn that in college.

[Alex Camarati]

No, not at all.

[Donovan]

Hell no.

[Alex Camarati]

No.

[Donovan]

So do you even have a real estate license?

[Alex Camarati]

I don't have a real estate license, but I have agents, you know, that now work for me that do have a license.

[Donovan]

Got it. And how are you finding the houses?

[Alex Camarati]

On the mll, so on the mls, we do find some houses. A lot of the stuff is, you know, just through Google pay per click marketing. You know, honestly, the best, though, has been the organic leads in the referrals that we've gotten.

[Donovan]

Really?

[Alex Camarati]

Yeah. That's been like, by far the best. Number one, they don't cost anything. And number two, they, you know, they're really high quality because you don't have to, like, sell yourself. They kind of already trust you because it's a referral. Wow. Yeah.

[Donovan]

So that's the. The strategy right there.

[Alex Camarati]

That's. That's been the best for me so far.

[Donovan]

Yeah. Because if you're looking on mls, everyone else is looking. Yeah.

[Alex Camarati]

And you're gonna pay the most.

[Donovan]

100%. Yeah. Because they. They can run comps and everything, so they have a better idea of the market and they have an agent representing them.

[Alex Camarati]

Right, exactly. And then, you know, it's just getting out to everyone. So you're just going to. If you win it, you're just probably the highest bidder.

[Donovan]

Yeah.

[Alex Camarati]

You know.

[Donovan]

Percent. Any crazy stories with squatters or anything?

[Alex Camarati]

Squatters.

[Donovan]

And where are you doing this? What state?

[Alex Camarati]

Florida.

[Donovan]

Okay.

[Alex Camarati]

Which is good because the laws there are, like, decent, you know, for. For the property owner. Now, it's still kind of difficult depending on, you know, what's going on and how they became squatters. The first time I ever dealt with a squatter was a property that I bought. There were, like, seven people living in there. By the time I had closed on it, there were, like, maybe four people living there. And this lady, like, overstayed her, you know, welcome, basically. And then she said she left. And I was like, okay, cool. So we went into the house, and her bed was still there. Her cats were still there. It looked like she was still living there. I was like, I don't think she left. So we went back a little bit later. Sure enough, she was in there. I was like, oh, boy. And it wasn't me. It was actually my project manager that went in there for. Funny enough, I was on the phone with him, and he walks in, and we're just talking, whatever. He's like, hey, what do you want to do with this, you know, base word? And he goes, hey, you cannot be here. Like, really loud, you know, really imposing voice. And I was like, bro, what's happening? And the lady's name was like, lisa. I don't know. I probably shouldn't say that, but who cares? She's a squatter. Lisa, you cannot be here. You have to get out right now. And then, sure enough, like, he kicks her out. She gets out and change the locks, whatever. I set up a camera. The next night, she climbs in the window and gets back in the house.

[Donovan]

No way.

[Alex Camarati]

Yes. And apparently, two of her other friends come in the house, too. Whoa. So we walked into the house one morning. The bathroom guys were there to, like, you know, work on the bathroom, whatever. They walk into the house, and they got one person in the back porch, one person in the closet sleeping. And then Lisa's in her bedroom. So they're like, hey, guys, you can't be here. You gotta get Out. And they left pretty easily. But this one, lady Lisa, kept coming.

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[Alex Camarati]

Coming back, like, every night, she would come back to sleep, and she was like, yay, I'm getting out today. Getting out today. She never got out, right? So one night I saw her on the camera. I was, like, near where the house was. So I just went over there, and I was like, hey, you gotta go. I got the cops over there. And the cops were actually kind of, like, giving me a little bit of a hard time because they were like, hey, you know, technically, you know, you're not the owner of record yet. I was like, yes, I am. Here's all the paperwork. It just hasn't updated on public record yet. And I had to, you know, basically convince the cops, like, hey, guys, help me get this person out that's not supposed to be here. And I had to prove, you know, my ownership and everything. And, you know, they had a conversation with her, and she was like, kind of like a meth head. So she. In that moment, she agreed to get out. I helped her literally take all her stuff and put it at the curb so she couldn't come back in. We, you know, put sticks in the windows to lock them. And after that, she finally got out. She didn't come back. I later found out that she got arrested and all the proceeds from the sale she sent to her meth dealer.

[Donovan]

No way.

[Alex Camarati]

And she lost all the money that she made from that sale.

[Donovan]

What?

[Alex Camarati]

Yeah.

[Donovan]

That is nuts.

[Alex Camarati]

Yeah. Wow. She, like, endorsed a check over to him because she didn't have a bank account, and he ran off with it.

[Donovan]

That's crazy. You're lucky you were in Florida. I feel like if that was Cali, you would have been screwed.

[Alex Camarati]

No shot. She would have still been there.

[Donovan]

Yeah. What is it, like, six months? If you're there, you own the house or something?

[Alex Camarati]

I don't know exactly. I actually had this one guy I know in. In California. He basically became a squatter, like Chase bank, you know, still is like, on the deed. But he's owned the house for, like, 20 years, and he's keeping rent on it. Yeah, he's, like, renting it out, and now there's, like, nothing they can do about it because it's in California.

[Donovan]

That's crazy. Yeah.

[Alex Camarati]

So he's making rental income for 20 years on it.

[Donovan]

How do the HOAS feel about what you do in their neighborhoods?

[Alex Camarati]

You know, it's interesting. Some HOAs are fine, and then some you just get, like, these Karens, right, that just have nothing better to do. They're retired or they don't work, whatever, and they just want to feel like they're in control. Right. So, like, one example. I had this one lady who. This is probably the craziest story, where she was like, hey, you can't be doing work without a permit. I was like, yeah, I understand. Here's my permit. And I showed her the copy of the permit. She's like, well, it has to be posted the window. It's like, okay, my bad. You know, I didn't know. And then we had it printed out, posted in the window, but it didn't get done that day. So what she did that day is she went into the unit. It was a condo. She goes into the unit, she kicks out all the guys that are working there, which I don't know why they listen to her, but. And she takes the keys out of my lockbox, and she holds on to the keys. Now, I live, like, an hour away from where this property is, so I get a call from the contractor, like, freaking out. He's like, hey, this lady just took your keys. She kicked all my guys out of the unit. Like, you know, what's going on? I was like, oh, this is ridiculous. So I hop in the car, I go down there, and I go knock on the door. Because the contractor, he was like, hey, she's in unit, like, 204.

[Donovan]

Yeah.

[Alex Camarati]

So I go knock on 204. What's the. Wrong lady? I was, like, giving her crap. I was like, hey, you took my keys. She's like, I didn't take your keys. And I was, I guess you did. Like, they said, it's 204. And then he was like, no, it's 304. Oh, dude, you told me.

[Donovan]

Poor old lady.

[Alex Camarati]

Poor old lady. So I had to go back and apologize to her. But then I find the lady in 304. She's just nasty, man. And there's actually a video on my Instagram about it where, you know, we're yelling back and forth. I was like, give me my keys, lady. And she's just not giving me my keys because I don't have the permit in the window. I was like, well, hey, the HOA has it on file. I do have a permit. Like, you cannot take my keys and go into my unit. Like, it's breaking and entering. Ended up having to call the cops. But before that, she tries to take off, and I got. Tried to, like, you know, get in front of the car. So she didn't go, well, tries to, like, run me over.

[Donovan]

Holy crap.

[Alex Camarati]

So I had to, like, hop out of the way. Whole videos on my Instagram.

[Donovan]

You recorded all this?

[Alex Camarati]

I recorded all of it.

[Donovan]

Wow.

[Alex Camarati]

Yeah. And then so she tries to, you know, run over me. Whatever. Cops come, and they got like, I got her license plate. So then, you know, they called her back in.

[Donovan]

Yeah.

[Alex Camarati]

And they got her. They talked to her. HOA president ended up, like, coming out. He was like, you know, kind of on my side, which is nice. And he was like, hey, you cannot be doing this. And the cops. So they gave her, like, a citation. They were like, you can press charges, but honestly, it's probably not worth your time. Like, if she does it again, go ahead and press charges. Thankfully, she didn't, but. Yeah.

[Donovan]

Oh, my gosh. Yeah. That's like attempted. Like, you write vehicular, like, manslaughter, something, Right?

[Alex Camarati]

Plus breaking and entering, plus, you know, whatever else.

[Donovan]

Yeah, yeah.

[Alex Camarati]

She could have gotten the whole book.

[Donovan]

Holy crap. She did not like what you were doing.

[Alex Camarati]

No, it's like, why? You know, I guess it was nothing better to do.

[Donovan]

I guess it was loud or something, right? That noise.

[Alex Camarati]

I guess. I don't know.

[Donovan]

Yeah, I mean, that's something. That's just part of being a homeowner. Like, your neighbors are going to do work once in a while. Like, that's.

[Alex Camarati]

Yeah.

[Donovan]

Like, what if she wanted to do work on her house?

[Alex Camarati]

Exactly. Like, what are you going to do there? But, you know, then there is, on the flip side, you know, some HOA that are really cool, and they're like, hey, you took this really ugly house and made it nice. Thank you so much. Here's some other houses that are ugly. So there are some good hoa.

[Donovan]

Oh, that's cool.

[Alex Camarati]

They're not bad all the time, but just some of these.

[Donovan]

I have a love hate with them. Yeah, me too. Because the monthly fees a lot. And then, so, dude, my way in Vegas, they found the money laundering.

[Alex Camarati]

Really?

[Donovan]

Yeah. They were keeping all the money. Yeah.

[Alex Camarati]

So what's going to Happen with that?

[Donovan]

I don't know. I left that neighborhood. But I'm. I think they're getting sued. I don't know. But that's probably common. Where. Because they're getting all this money they're obviously not spending at all.

[Alex Camarati]

Right.

[Donovan]

Like, let's be honest.

[Alex Camarati]

There's a big thing in Florida with, with condos because, like, you know, I don't know if you've heard about it, but there, there's something called a milestone inspection where if the property is more than like three stories tall, they have to come in and do an inspection, make sure it's like up to, you know, up to spec and everything. If there's not, they get these huge assessments. Like there was this one with had foundation issues near me. It was a probably like 70 something unit deal on the beach and they wanted to sell it for like a million six, which is worth like $20 million.

[Donovan]

Whoa.

[Alex Camarati]

Yeah, it just. Because they were going to dissolve the HOA and just wanted to get rid of it.

[Donovan]

Damn.

[Alex Camarati]

So. Yeah. Right.

[Donovan]

Someone scooped that up.

[Alex Camarati]

So it's a whole process. I'm trying to. Yeah, but it's a whole process to like dissolve an HOA and everything like that.

[Donovan]

Yeah. It sounds complicated.

[Alex Camarati]

Yeah. Yeah. But like, you know, they didn't have the reserves to do the fine foundation repairs and, you know, the people didn't have the money to come up with, you know, for the assessment and everything. So they were just. Hey, it's better to just get rid of it.

[Donovan]

Yeah. How's the market in Florida about you right now? Right now there's a lot listed in Vegas.

[Alex Camarati]

Yeah, there's. There's a decent amount listed in Florida, too. I would say like a few months ago it was. It was a little worse. It's picked up a little bit now with a little bit of an interest rate cut. Yeah. But it's definitely slower than it was, you know, like last year, year before. But it's not horrible. You know, we're still selling stuff.

[Donovan]

Yeah. It feels like there's like a stalemate still.

[Alex Camarati]

There is a little bit. Right. Because people think interest rates are going to keep dropping, which they probably are. So then they're kind of just waiting. But, you know, then again, if you wait, then, you know, prices are probably.

[Donovan]

Going to go up if you wait. Yeah. And there's more offers.

[Alex Camarati]

Yeah, exactly. You're going to be competing with more people and you're going to pay more for the property.

[Donovan]

That's why I bought now, because I was chilling. I was the only offer I Had all the leverage. I was, you know.

[Alex Camarati]

You know, I bought. I bought my personal house recently too. And the way it went down is they were listed on the market for 935 grand. Then they dropped it to 850. I offered them 550.

[Donovan]

Damn.

[Alex Camarati]

And they were like, no, we can't do 550. I was like, all right, what can you do? They're like, well, we'll do 560.

[Donovan]

Wow.

[Alex Camarati]

All right, cool.

[Donovan]

You lowball.

[Alex Camarati]

Yeah, lowball them. Like, wow.

[Donovan]

So you got that for like 40% off.

[Alex Camarati]

Yeah. And it. When I bought it, it appraised for 1.2 million.

[Donovan]

Holy crap.

[Alex Camarati]

Yeah. So, like, it's so much easier to get better deals right now.

[Donovan]

That's insane.

[Alex Camarati]

Now I'm going to have to put like 250 grand into it just to make it nice and like, I want to, but, you know, is solid property.

[Donovan]

You got to steal. You doubled your money overnight and you didn't do any work to get that appraisal.

[Alex Camarati]

No, I mean, it appraised as is just because it's a big house, nice neighborhood, big pool on a golf course. And just like that neighborhood.

[Donovan]

Wow.

[Alex Camarati]

With that size of a house, you know, was north of a million, it.

[Donovan]

Sounds like that's your competitive edge. You're really good at identifying these deals.

[Alex Camarati]

Yeah. You have to be.

[Donovan]

You've probably seen so many at this point where you can just see it and.

[Alex Camarati]

Yeah, I'll tell my acquisition. Guys, hey, guys, I want you to. If I tell you a street name and I tell you the approximate size of a house, I need you guys to tell me how much that house is worth, because I know it, right? Like, if you tell me, you know, I live in Port St Lucie. If you tell me, hey, it's this street in Port St. Lucie. Three to seventeen hundred square feet. I know that. That'll sell for four hundred grand. Whoa.

[Donovan]

Is that memory or is that just skill?

[Alex Camarati]

Knowing the market, you know, and now not everywhere is going to be like that. You know, where houses are not so cookie cutter or whatever, but. Yeah, I mean, you have to be able to know what properties are worth so you can identify a good deal right away.

[Donovan]

Right, That's. That's important because you gotta act quick. If you see a good deal.

[Alex Camarati]

100. Yeah.

[Donovan]

Before someone else scoops it up.

[Alex Camarati]

Definitely.

[Donovan]

That makes sense. Damn, it sounds like you're gonna surpass Pranada.

[Alex Camarati]

Well, he's doing a lot. You know, he's. I think he. He changed his strategy a little bit. He's doing A lot more like wholesale innovation deals, which is awesome. I'm honestly, I'm getting into that.

[Donovan]

Wholesaler? No. Novation, you said?

[Alex Camarati]

Yeah. You know, where, you know, he's not taking down as many flips just because the risk, you know, because I, I mean, a lot of flippers, myself included, you know, 20, 23, you know, when the market really slowed, it's like, hey, if you're carrying 40 flips and they all drop by like 30 grand, you know, that's, that's $1.2 million.

[Donovan]

That's a big hit.

[Alex Camarati]

You just like took an L on.

[Donovan]

Right.

[Alex Camarati]

You know, and you know that. I think that's kind of why he's switching to like the wholesale innovation strategy, because there's a lot less exposure.

[Donovan]

Yeah.

[Alex Camarati]

It's not like you have to go and own a property for six months and then, you know, sell it and make money.

[Donovan]

Yeah.

[Alex Camarati]

You know, if you can't get the price you want, you just cancel the contract.

[Donovan]

How does novation work? I haven't heard that one.

[Alex Camarati]

So it's a little bit complicated and it works a little bit different in, in each state. But essentially instead of wholesaling the house to a cash buyer, where you get a contract, let's say for 300 grand and you go assign your contract for 320 to a cash buyer who's going to flip it and you make that $20,000 spread. Novation is when you actually will sell it to a retail buyer, someone that's going to live in the property, because those people can pay a lot more for the property than, you know, an investor can, because the investor's trying to make money. Someone who's living there is just, you know.

[Donovan]

Got it.

[Alex Camarati]

They don't need to profit most of the time.

[Donovan]

So you're like middlemanning, basically. Similar to wholesale.

[Alex Camarati]

Yeah, it's similar to wholesale, but you're selling to buyers who will pay you more. Right. And then in turn, you can get the seller more money.

[Donovan]

Right.

[Alex Camarati]

That's, that's like a big pivot that he's been pushing and it's. I 100% see why. And I'm honestly going to be doing that.

[Donovan]

Yeah. There's so many ways to make money in real estate. I know people buying land.

[Alex Camarati]

Yeah, same here. Yeah.

[Donovan]

And flipping it for like crazy profits.

[Alex Camarati]

Because you can change the zoning on land too.

[Donovan]

Right.

[Alex Camarati]

If you buy an agricultural, you know, maybe 10 acres and you get it mixed use, commercial, like, I mean, you're going to probably triple, if not quadruple the value of that land, and I.

[Donovan]

Feel like that industry, specifically the land, if you have the right, connects with politics. Like, you could really run it all.

[Alex Camarati]

Get in there and lobby and.

[Donovan]

Yeah. I mean, let's be honest. That's how the top guys are probably doing it.

[Alex Camarati]

100%. Yeah. Because, I mean, you know, like, where I am in Florida, it's like, if you fly over Florida, like, you go into the airport, you just see it's like, by the ocean, it's just extremely dense and extremely populated. And then you go, like, a few miles out, it's just, like, trees and, you know, at the Everglades. Right. And it's just. It's slowly moving west as people, you know, just keep building and keep building. So, you know, people will buy this agricultural land a couple years. It'll be, you know, a neighborhood.

[Donovan]

Yeah, right. Yeah. They'll get priced out of all the major cities.

[Alex Camarati]

Exactly.

[Donovan]

And Florida is the best. Probably the best state in the country to live in right now, in my opinion.

[Alex Camarati]

Yeah. Well, and it's nice, too, because, you know, you have the beach, you have, you know, like, woods. You have, you know, access to water, access to, you know, the Caribbean, which is.

[Donovan]

Yeah. Good Airport.

[Alex Camarati]

Yeah. 100.

[Donovan]

Yeah. You could fly pretty quick to. Out of the country. So 100. I'm a fan of it if it wasn't. The only thing is the humidity. Dude. I walk outside, my glasses are like.

[Alex Camarati]

Yeah. But other than that, Vegas is. I was here, like, three months ago in. In July. Oh, man, it was hot, man.

[Donovan]

120.

[Alex Camarati]

Yeah. And it's like a dry heat. Like in Florida, it's like, you know, you can breathe because it's humid and I live in Florida. I'm used to it. Like. Yeah, you sweat more. But, like, I'm coming out here to Vegas and it's hotter, but I'm not sweating as much. But, dude, I can't breathe.

[Donovan]

Yeah.

[Alex Camarati]

It's so dry. And I'm sure you get used to it when you live here, but.

[Donovan]

No, you don't. My lips have been chopped for four years.

[Alex Camarati]

Oh, my gosh.

[Donovan]

I get bloody noses still. You don't get used to this shit. No. Literally everyone here carries around chapstick or something.

[Alex Camarati]

Really?

[Donovan]

Because your lips just don't get used to it. Yeah. Like, it's tough out here. I would pick wet heat over dry heat.

[Alex Camarati]

Yeah. And, you know, it gets cold in the winter. I didn't realize Vegas.

[Donovan]

It does.

[Alex Camarati]

You know, I was like, I figured desert, you know, it's, like, still warm now it's cold Man.

[Donovan]

Yeah.

[Alex Camarati]

I was here in January and It was like, 40 degrees.

[Donovan]

No, you need a hoodie and sweatpants.

[Alex Camarati]

Yeah, I didn't bring anything like that. I thought it was gonna be hot.

[Donovan]

Florida, you can wear a T shirt and shorts the whole year.

[Alex Camarati]

Yeah, flip flops and whatever. You're good.

[Donovan]

Yeah, you're set now. Florida's big on supercars. I know. You got one, right?

[Alex Camarati]

Yeah, recently.

[Donovan]

What'd you get?

[Alex Camarati]

I got a McLaren 570, which is like, you know, entry level. I wrapped it orange because, you know, classic. Yeah. Like, I always wanted an orange McLaren, but, you know, I really got it more as an investment. Right. And some people might be like, oh, yeah, it's not an investment. But I think it is because just in the few months that I've owned it, I've gotten offers, you know, to be literally on TV shows and, you know, have someone write a whole pitch for me to do that. I've gotten people that wanted to sell me their real estate deals, that wanted to lend me money on my real estate.

[Donovan]

Wow.

[Alex Camarati]

Just in a few months of having it, you know, because they kind of associate that, you know, hey, someone's driving a car that's a couple hundred grand, you know, they obviously have some type of level of. Yes. Right. So, I mean, it's. It's a big, you know, marketing thing.

[Donovan]

Cars are great social proof, and I know they get hate, but if you use it in the right way, you can make an ROI on it, 100%.

[Alex Camarati]

And plus, I'll go to these. Like, I'm in this club with a bunch of supercar owners. Right. So who am I hanging around with? Other supercar owners who obviously have a lot more money than I do.

[Donovan]

Exactly. And they got connections, people that probably invest in what you're doing. Yeah, it's a win win. I need to look into those clubs out here.

[Alex Camarati]

Yeah, yeah, do it. I know. Fast Lane Club. I don't know if they have it out here. Fast Lane, big in Florida, and they have a few, like, national ones, too.

[Donovan]

Yeah, I know there's rallies out here. I've been meaning to get to one of those. Yeah, those look fun.

[Alex Camarati]

Yeah. Are you in the cars at all?

[Donovan]

I got a G Wagon. I mainly bought it for the write off.

[Alex Camarati]

Yeah.

[Donovan]

Last year we had a lot of money, a lot of profit in December, so I was like, shit. I got like to figure this out, so I went to Vegas Auto Gallery and bought one. But no, I'm gonna get more into it because my house has a lot of spots for Cars. So I need to step it up.

[Alex Camarati]

Yeah. That's one of the reasons I got my house too, because it has like a huge driveway and like a three car garage. But there's like, there's room to add like another, you know, two car garage and probably some lifts. Wow. You know, I'm like, I really like cars.

[Donovan]

So that's the first one for you.

[Alex Camarati]

Yeah. This is like, you know, for the future.

[Donovan]

One of many.

[Alex Camarati]

Yeah. And you know, speaking of cars to like, not everything I have is like, you know, super nice. I got my truck, my, you know, Ford Raptor, which is like my. Basically my daily.

[Donovan]

Yeah.

[Alex Camarati]

And then I have these like two old Jeeps. One of them I found in a house that I bought, which was awesome. Why I got it for free.

[Donovan]

No way. He left his car.

[Alex Camarati]

He left his car? Yeah, yeah. And I, you know, I text him, I was like, hey, like, you coming to get this? Or he's like, nah, there's no title. It's like, you know, I can't get it running. All it needed was a fuel pump.

[Donovan]

Damn.

[Alex Camarati]

Drain the old gas. Put a new fuel pump in there and put a new battery in it. And it got it running, you know, for like 350 bucks or that.

[Donovan]

That's probably worth like 10 grand at least, right?

[Alex Camarati]

Yeah, yeah, it's probably worth a few grand. I mean, it was kind of in rough shape, you know, but there was also no title to it. So that was. You had to, you know, go through that process, which I didn't want to. So what I did is I went. My parents have like a little bit of property and there's like, you know, more like land, like to ride, you know, ATVs and whatever out there. So, you know, we would just take it on the trails.

[Donovan]

Oh, I love that.

[Alex Camarati]

Beat the crap out of it, you know, and like, because you don't, you don't really care about it.

[Donovan]

Yeah.

[Alex Camarati]

You know, it's not. I feel that your nice hundred thousand dollar truck, you know, so you just. Whatever. Then I let one of my guys drive it and within like 30 seconds he crashed it into a tree, bro. Totaled it.

[Donovan]

Come on now. I've never been off roading.

[Alex Camarati]

No, no, no way.

[Donovan]

I want to go.

[Alex Camarati]

Dude, you have to.

[Donovan]

I heard Vegas has some good spots.

[Alex Camarati]

I've heard that too.

[Donovan]

I've had the best off road racer in the world on the podcast. B.J. baldwin.

[Alex Camarati]

Yeah.

[Donovan]

And he lives out here, so he said whenever I'm ready. But dude, he goes like, so fun. He goes like 100 miles an hour. So I don't know if I want that, but we'll see.

[Alex Camarati]

Yeah. So, you know, I got. I really liked. It was like, this old Jeep, and when that one got crashed, like, it just wasn't worth it to fix it. Like, it actually still ran funny enough. But I just. I liked it so much, and it was so much fun. I got another one on Facebook, Marketplace, you know. Yeah. And I was like, well, you know, if it breaks, whatever, I can use the parts from the other one.

[Donovan]

Don't sleep on Facebook, Marketplace.

[Alex Camarati]

I know, right? You know, I just. I lowballed the dude again, you know, Got it for, like, you know, a few grand lower than what he was asking for.

[Donovan]

Nice.

[Alex Camarati]

And then. So I drove it. Whatever. Then we were in a field, just, like, it was, like, wet, so we were, like, doing donuts, whatever. Caught, like, a little hole on the front tire, ended up rolling it over.

[Donovan]

Whoa.

[Alex Camarati]

Yeah. Thankfully, I mean, we didn't get hurt or anything like that, but it was, like, behind a neighborhood.

[Donovan]

Damn, that's scary.

[Alex Camarati]

Yeah. And then, like, the neighbors saw it and they came over right away, helped us flip it back over and drove it, and it turned on right away.

[Donovan]

Wow.

[Alex Camarati]

Drove it. We ended up getting a trailer and just taking it home because, like, your windshield was all cracked.

[Donovan]

Yeah. Those cars are durable, man.

[Alex Camarati]

I know, right? Yeah.

[Donovan]

Is that, like the biggest hobby you have, off roading?

[Alex Camarati]

I mean, I like. I like doing that. And it's. It's easy because, like, you know, where I live and everything, you don't have to go very far. I mean, I also love snowboarding, too, but I live in Florida, so that a few times a year when I. When I go out to Colorado or Utah or whatever.

[Donovan]

I was UFO hunting last night.

[Alex Camarati]

Were you really?

[Donovan]

Yeah. I had this guest on Shout out to Chris Bledsoe. He's a UFO expert.

[Alex Camarati]

Really?

[Donovan]

Yeah. I can't say I saw one. I'm not going to sit here and lie, but I did see some weird, like, star movements.

[Alex Camarati]

Yeah.

[Donovan]

Like, interesting. I thought they were meteors, but then we looked it up, and there was no meteors that day.

[Alex Camarati]

Interesting.

[Donovan]

So who knows?

[Alex Camarati]

So, all right, a little off topic here, but do you believe in aliens?

[Donovan]

Yes. Do you?

[Alex Camarati]

Yeah. You know, I never did, but the more I think about it, you know, with how big the universe is, I mean, the odds are there's probably is something else out there.

[Donovan]

There has to be no. Right. Whether it's physical or, like a light being, who knows? But there's gotta be something.

[Alex Camarati]

Yeah.

[Donovan]

I mean, there's some animals that I think are aliens.

[Alex Camarati]

Yeah.

[Donovan]

You know, like praying mantis. They be fucking shit up. Like, that's not normal, right? Nah, there's like, even octopus, they're like, way too smart for, like. That doesn't make sense.

[Alex Camarati]

They have like a little brain in each one of their tentacles.

[Donovan]

Oh, they do.

[Alex Camarati]

That's what I've heard. Yeah.

[Donovan]

Wow.

[Alex Camarati]

Someone could fact check me on that. But that's what I've heard.

[Donovan]

That is wild. No, but they're super smart. Even, like dolphins, like, they communicate with, like, the energy waves or whatever.

[Alex Camarati]

Yeah, yeah, it's wild.

[Donovan]

There's interesting animals.

[Alex Camarati]

Don't underestimate animals, man.

[Donovan]

Yeah. You got any dogs or anything?

[Alex Camarati]

I do. I got one dog.

[Donovan]

Dogs changed my life.

[Alex Camarati]

Yeah.

[Donovan]

Had terrible anxiety.

[Alex Camarati]

Really?

[Donovan]

Yeah. Like awful crippling panic attacks. And dogs, they just like heal you, man. They're so pure. You come home and they're always love you. Yeah. Like, you could have the worst day and come home and they just make you feel way better.

[Alex Camarati]

100%. Yeah. No, they're awesome. I mean, I. You know, my parents kind of like fought me on getting a dog when I was younger. Yeah. And, you know, for good reason. But now, like, you know, they, you know, we got one probably when I was like 12. He's, you know, he's still alive. He's still doing great.

[Donovan]

Nice.

[Alex Camarati]

And then, you know, just like, that bond is so close.

[Donovan]

That's massive. Are you big in, like, biohacking, personal development stuff?

[Alex Camarati]

I haven't really gotten into that.

[Donovan]

Yeah, you're young, so you could. You have unlimited energy right now. But you'll see, as you age, you'll have to start doing stuff.

[Alex Camarati]

Yeah, that's what everyone tells me. Yeah.

[Donovan]

But I remember when I was your age, I was working 18 hours a day, easy.

[Alex Camarati]

Yeah.

[Donovan]

Sleeping like four hours, not feeling shit.

[Alex Camarati]

Right.

[Donovan]

But it'll catch up to you. Yeah, yeah, yeah, it'll catch up, man. But, dude, it's been cool. Where can people find you and do you have a course or anything?

[Alex Camarati]

I don't have a course. I probably will start some type of mentorship later this year. That. That is the plan. We're just kind of working out the details of that. But honestly, I'm super active on, you know, Instagram, Facebook. You find [e-mail]. just my last name. Camarati. C A M A R O-T T I homes.

[Donovan]

Perfect.

[Alex Camarati]

I post pretty often on that, you know, and people send me messages looking for stuff, whatever. I'm always trying to answer.

[Donovan]

Awesome. Yeah. If anyone here is watching this and they got a house in Florida, hit you up right, I'll buy it. Perfect.

[Alex Camarati]

I'll sell it for you. Whatever.

[Donovan]

I love it. We'll link his stuff below. Thanks for watching guys. As always. Peace.

[Alex Camarati]

Appreciate it. Yeah.

[NHTSA]

Drinking and driving is a decision that could change your whole world. Things will never be the same if you ever get a DUI because legal fees and time in court are just the beginning. Getting into a crash is another way that your world can be turned upside down. Your vehicle may not be the only thing that gets damaged in that crash. You can face a life altering injury or even death, but you're not the only one that can face those consequences. Your decision to drink and drive can permanently impact not just your world, but someone else's world as well. Whether you injure them or leave their loved ones grieving. The next time you're out drinking, call a ride, share a taxi, a sober friend, or a designated sober driver. The only decision that will change your world for the better is the decision to call for a sober ride, drive sober or get pulled over. Paid for by NHTSA.