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- [00:00]
A
What's up guys? Welcome back to a Real Deal episode where we dive into a real deal. So we'll keep this one short, to the point, but also not skip over any of the good stuff that you can take and apply today. We have somebody that I. I barely know. His name is Trevor Stackhouse. What's up, Trav?
- [00:29]
B
What's up man? How's it going?
- [00:31]
A
I say I barely know Trevor as a joke. He's actually my brother in law. So props to Trevor. He's on here not because he's family, but because he has an awesome deal that we're going to talk about. I'm super pumped to dive into it. And props to Trev. Like he, as, as a family member, I think it's easy to be like, oh, I'm just gonna free preload off of Brody and just I'll ask him questions when I'm around him. But he actually invested in real estate investing school. He's been paying for it this whole last year, been a part of it and, and also went out and did something and I just took the knowledge and didn't do anything. But super quality deal, which you're going to dive into in a second. And how he did all this stuff, it's just crazy. It's. It's cool on so many levels and I think people are going to pull a lot from it. So Trev, man, just kind of diving into it. One, thanks for being here. And then. Well, one, you didn't have a choice. I forced you into doing this. Just kidding. But give us like, just like a brief rundown on your deal, what it is to start things off.
- [01:34]
B
Yeah, I mean, thanks for having me on. So a quick rundown. I mean, I got this deal. I think it's been about a, it's been coming up on a year now. So I kind of got it like right at the beginning of your. Of your school. Originally got it as a five bedroom, three and a half bath. Ended up converting some of the extra room that was in the downstairs. Ended up making it seven bedroom, three and a half bath. You know, rent cost me. Mortgage cost me 1600 bucks a month. I pull in about 2,800 bucks a month from adding in a couple extra rooms.
- [02:11]
A
So that's kind of like 2,800. Is that what you said?
- [02:14]
B
2,800? Yes.
- [02:15]
A
Wow. So after. Because you pay utilities and stuff?
- [02:18]
B
Yeah, yeah. So I pay utilities and everything. After everything's said and done. It's right around 1050. That bring in a month.
- [02:27]
A
Sweet. Dude. That's an awesome first deal. Yeah, we talk. We talk about this a lot too. Like $1050 a month to someone might sound like a lot, and to someone else might not not sound like a lot, but it's all relative. Right. Because that, it could be a good deal that produces that, or it could be a horrible deal that produces that. A lot of it comes down to how much money it took to actually acquire the deal, Right?
- [02:51]
B
Absolutely.
- [02:53]
A
So maybe talk about that. What strategy you used to buy that property and how much money did you have to have to buy it for?
- [03:00]
B
Sure. So going into the deal, the home originally was listed for 300. I ended up getting it for 295, I believe. So I put just three and a half percent down. So at the end, I don't know, I think it was 11,000 bucks that needed to put down something like that. What was actually cool about this deal is there were a couple of renovations that needed to be done on the home. And so the seller actually agreed to pay for the amounts of the renovations that needed to be done. So basically I went in and got bids for everything. I got bids for lights. I got bids for windows that might be like a little cracked or the seal is broken. I got bids for, I don't know, a wall that might need to be painted, like everything. Right. So at the end, it was right around. I think it was right around 15 grand. So what actually ended up happening is we were like, hey, we'll take five grand off the buying price. So it ended up being 295 instead of 300. And then they actually gave me 10 grand to do the renovations. Right. So what I ended up doing is I just. I just did them all myself. Ended up costing me about six grand to put in the extra bedrooms, do all the renovations that I needed to do. I put new floorings in some of the rooms. And then I actually ended up pocketing the other four grand that I didn't even spend. So.
- [04:28]
A
Awesome, dude.
- [04:29]
B
Right off the bat, I had already gotten close to, you know, 40% of my money back on the home.
- [04:37]
A
So really, instead of 11 grand down, you're able to get some of those cosmetic rehab done. And it was more like six grand.
- [04:45]
B
Yeah, six, seven grand they called it. It's called an escrow holdback, what we ended up doing. And so there are certain.
- [04:53]
A
I think it's important to point out there are certain things with that. Right. Like they. They had to confirm that the work was done before escrow released the money and stuff like that. Right, but exactly.
- [05:02]
B
It was, it was definitely. I mean, the process was definitely longer than if I would have just not have done that. Right. Like, it was a little more of a headache for sure. Definitely. Some things took a lot longer than they needed to, but overall I was happy I. I did it. But. Yeah. And then, I guess, then going into the home, like I said, it was originally the five bedroom, three and a half bath. It was in a college town. I mean, where you've been buying Cedar City, the downstairs had one bedroom.
- [05:37]
A
Don't tell everybody, dude. We can't tell that out.
- [05:40]
B
We might actually. That a secret, dude. It's a secret gold mine down there.
- [05:46]
A
And, and I mean, speaking of that, even when you bought this house and this was so interesting with was a very high time in the market. So I actually, in this area, I. I had. I flipped the house over there.
- [05:58]
B
Right across the street.
- [05:59]
A
Yeah. Exact same floor plan, same everything. Right. And I bought that for. I bought that for a hundred and like $18,000 and I sold it for $189,000.
- [06:13]
B
Right.
- [06:14]
A
And so I thought, like, I made out on it pretty, pretty good, did some cosmetic rehab and, and then, and I usually keep stuff, so it was rare for me to actually sell it. But now we're talking the exact same floor plan. We paid 300 or 295 for it. And so I think like, at the time, people were like, oh, that's like a lot of money to pay for that property. Why would you pay that much money for the property? And it just goes to show, it's not even about like the purchase price as much as like how you finance it, what you do to get creative on it. Because if other people knew that they could cash flow over a thousand dollars on it and be into it less than $10,000, it'd be gone, right?
- [06:54]
B
Absolutely. And I think that's where, like, especially the school and what you teach comes into play is like, you got to be creative. You know, that was like at the highest time of the market, the home was just going to sit on the market. Right. Because no one's wanted to pay 300k to get into a house and then have to do renovations. And so I definitely think the strategies, the different ways you learn to invest into real estate through the school, it's like, okay, sweet. Like I. Not just looking at, you know, the, I guess just like the outside of the home or just like at the home as like, okay, it's a five bed, three and a half bath, but rather looking at, okay, what can I do to make this home an investable home? Right. You create deals. Right? Deals aren't just made for you. You got to go out and create them. I don't know what quote you always say, but there's a quote. I know you say that has something to do with that, but sounded good.
- [07:47]
A
The way you said it. We can quote you on that.
- [07:49]
B
Let's. Let's hope we'll put that. Put my name on that instead of yours. But yeah, I mean, then getting into it, like I said, I went downstairs. There was just a big living space. There's already a living room in the main floor. So I ended up just converting that living room into an extra two bedrooms that each pay me 425 bucks a month. So ended up getting me an extra 850 bucks a month, which brought up the rent collection to about 2,800. I'm not 100% sure on the number. I know it's just right around the 2,800 mark. I haven't looked too much, but that's awesome.
- [08:30]
A
Just having, yeah, the, the foresight to be like, huh, this is how much money it makes if I do this. And it sounds like it was only a couple thousand bucks to actually frame it out because I know you did.
- [08:40]
B
A lot of the work.
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A
Right.
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B
Yeah.
- [08:42]
A
Yourself on the doors and you don't need permits and stuff to, you know, frame an interior non load bearing wall most of the time. Right. So super cool there. And then it's interesting too, because with you going through this whole process, like it, it was new for you. Right. Like you had. This was your first deal that you've done. Like, was it scary? Oh, are you worried, like, am I gonna be able to pay for the mortgage if. If other people. It doesn't rent out or.
- [09:11]
B
Well, I remember texting you and being like, trying to get you to like help me out a little bit, like, tell me yes or no. And you just text back and be like, yeah, sounds good, man. Seems like you got it under control. Like, it wasn't like, like giving me a ton. And so it was like scary because, you know, it's the, it's the first deal.
- [09:28]
A
But you wanted me to be your fall guy.
- [09:30]
B
Oh, I, I did. I wanted to make sure if it didn't go well, you were paying the mortgage for me. No, but it definitely was. Was scary. It was nerve wracking. I think it just came down to like, hey, like, I've invested time and money into learning these different skills and like this, this is what works. And I know this is what works. So at the end of the day, like, you had to almost, like, just logically think about it instead of, you know, emotionally trying to. Trying to go into the property. And so definitely scary. But I mean, now, I mean, it's like I already feel like I'm ready, you know, I'm not scared to get property number two, you know, here in the next couple of months and just ready.
- [10:13]
A
You've been looking. You're like, you're. You're. Yeah, you're ready, which is awesome. And it's. And that's what we call, like. Like on these. These shows really talk about how'd you find it, how'd you fund it, and how'd you force it? And really, like, you. You forced it. I mean, you got creative to make this deal. One that works. And it's. It's kind of how I started doing a lot of these early on was rent by the room close to college campus. I knew I can charge more all these things. And that scares a lot of people away. Cause they're like, oh, that's. That's. What if they party? What if they mess up your house? A lot of these things, you know. And so you just got. You were out in. In Maui with me for. I don't even know how long you're out here. Over a month. Yeah. Kept wondering when you're gonna go home, but. But while you were out here, like, was cool because, like, we had these conversations and. And you're. How old are you right now, Trev?
- [11:06]
B
24. Just turned 24.
- [11:07]
A
So just. Just. Just turned 24 and like, a thousand bucks a month that comes in and you didn't do anything. How does that feel? Like, is that.
- [11:16]
B
Well, it's great.
- [11:17]
A
I mean, it's a big deal.
- [11:19]
B
Awesome. Yeah, right?
- [11:20]
A
Like, that's a lot of money over the. Just this last year that's came in that way. And so it was cool. Like, as you're couch surfing, living for free in Maui, just hanging out and making money at the same time. Like, because you were definitely living off less than $1,000 that month. I know that.
- [11:38]
B
Oh, easily manual fair. But y' all so, so awesome. I mean, even. Even now I live up north. I have some friends here up north. And so I pay rent every month, but I don't actually pay rent. Right. Like, I get a thousand bucks a month. I pay my rent from that thousand bucks and still pocket the rest. So it's pretty awesome. It's like I'm. I'm I'm living for free right now. And I think the best part I even talked to you about is now moving forward onto property number two. You know, I got the home appraised, and it appraised for 400,000 bucks, so I owe about 280 on it right now. So it's one of those things where it's like, if I ever needed to sell it, you know, that's 100k. But moving forward, it's like, you know, I can take a HELOC out on that now. And here, moving forward, I don't have to spend any of my own money, and I can get into more and more properties without spending any more of my money, right? One deal, 11,000 bucks, and I'm going to be able to get, you know, a new home, at least one new home every single year, and not spend a single dime out of my own.
- [12:45]
A
That's so awesome, dude. It just rolls over and rolls over and rolls over. We call it the steamroll, right? And pick it up more and more and more. Um, what. What advice? Like, anything that you learned from this or anything that. Any advice you'd give to somebody that's like, maybe they're get ready to get their first one. Maybe their first one was a bust and they're, like, discouraged. Like, what would you say to somebody? And maybe they're younger too, like, starting out, man.
- [13:13]
B
I mean, I think. I think bottom line is, is you just, at the end of the day, you got to go for it. You got to trust, like, what you're learning. If anything, I wish I would have started when I was 20 or 21. Right. The only regret I have is not starting earlier. So I would say any advice is just. It's just to do it, you know, just to go for it and. And get that first deal and just make sure you're creative with it, right? Don't. Don't just look at what everyone else is looking at, but look at. Look at something that you can do to make the property a good deal. And yeah, I mean, start as fast as. As fast as you can because, I mean, it's not. It's not going to get any easier moving forward, and it's probably not going to get very much harder, so you might as well just start right now.
- [14:01]
A
Dude, that's sweet. That's a. That's a good one to end on, man. Man. Such a cool deal. Like, way to get after it and do it. Way to, like, invest in yourself and actually learning and diving into it. And we just. You're not in school or anything right now. We were just really talking. But, like, you've been going to the library to, like, be in a different environment while you're, while your roommates are going to class. Like, you've been studying and reading books and like, that's where it's. That's where it's all about, you know, that investment into you and your future that way. So props, brother. And you can buy me an ice cream cone or something with your next, next month's rental check that comes in. So.
- [14:39]
B
And we're all seeing you soon.
- [14:41]
A
Where can, where can people reach out, dude, if they have any questions about your deal or they want to connect with you? What's a good spot?
- [14:49]
B
Yeah, I think Instagram's the best spot. Trevor Stackhouse, 11. Go ahead and send me a message. And more than happy to share.
- [14:59]
A
Cool. Thanks, brother. Well, thanks so much, man. Thanks for taking the time and we'll probably see you here soon. Unfortunately.