Podcast Summary: "REAL DEAL: How to Find, Fund, and Force Your Dream House"

Podcast: Real Estate Investing School Podcast
Host: Brody Fawcett
Guest: Zach Memmott
Episode: 164
Date: June 6, 2024

Main Theme & Purpose

This episode is a special “Real Deal” installment focused on how Zach Memmott found, financed, and negotiated his way into his (current) dream home. Unlike typical episodes focused on investment properties and cash flow, this conversation dives deep into mindset shifts, expanding personal boundaries, and tactical lessons on navigating complex real estate deals—whether for a primary residence or an investment. The discussion is candid and insightful, offering listeners practical wisdom on stepping into bigger opportunities and creating win-win scenarios in real estate negotiations.

Key Discussion Points & Insights

The Search for the Dream Home

• Long Search & Changing Mindset (03:03–06:25)
  • Zach and his wife house-hacked their first home, living nearly mortgage-free due to a basement renter.
  • As their financial situation grew, Zach felt stagnant: “Nothing in my life has changed drastically… We should shake it up. I want to get out of here.” (03:52)
  • Zach admits to caring little about material things—but values enjoyment and new experiences: “I really enjoy them, but, like, they don't mean a lot to me. Other than they're enjoyable.” (04:19)
  • He sought a specific neighborhood and type of house. After being outbid on one property and missing out, the market shifted, pushing him to expand his search criteria.
  • Eventually, Zach toured a home with unique features (tall ceilings, basketball court) that inspired him: “This would be sick to raise my kids here.” (07:15)

Mindset Shifts: From Comfort to Growth

• A New Environment, New Gratitude (09:13–12:20)
  • Zach reflects on wanting to feel “something different waking up and going to bed”—highlighting how a new space can impact daily mindset.
  • Memorable reflection: “Whatever you wake up to, in a lot of ways, determines how your day goes…it's fun to wake up in a new place.” (09:24)
  • Moving brought unexpected gratitude: “I feel way more gratitude living there, which is really interesting and I think that's very powerful.” (11:13)
  • The discomfort of stretching financially was intentional for Zach: “I started to really analyze discomfort and how I perform better when I'm uncomfortable. So let me go get financially uncomfortable for a minute was kind of the thought process.” (11:24)

Comfort, Nostalgia, and Identity

• Both Brody and Zach reminisce about living simply and the value it brings:
  • Brody: “I have zero issues driving this vehicle...It doesn’t mean I don’t like nice stuff. Like you’re saying, it’s fun…But if I had to switch it, I’m cool.” (12:58)
  • Zach: “For me…it’s fine to go back to the trenches. Like, that’s where I was built. That is who I am…I just don’t want to go back if I need to.” (15:23)
  • The familiarity of humble beginnings is both motivating and grounding for both.

Deal Mechanics: The Art of Finding, Funding, & Forcing a Deal

• Leveraging Equity & Financing (18:12–18:45)

  • Zach took a HELOC (home equity line of credit) on his previous house:
    • Bought for $320k in 2016, appraised at $600k, owed $280k: secured $320k line.
    • Both units’ tenants covered mortgage plus HELOC payment, so the new borrowing didn’t impact cash flow.

• Negotiating the Purchase (18:46–23:09)

  • Target home was listed at $1.7M but sat on the market for 200 days.
  • Initial offers rejected; seller wanted to put it in the Parade of Homes, requiring further investments.
  • Ultimate deal involved agreeing to a $1.9M price, but Zach successfully negotiated upgrades and customizations (notably, the pool type) that required adjusting the contract multiple times—eventually closing at $2,299,000.
  • Candid about complexity: “There was a lot of resistance, though, for somebody that didn’t know how to navigate any of it.” (23:09)
  • Only $180k of Zach’s “own” money was required at closing; the rest came from leveraging existing assets.

• Overcoming Obstacles & Problem Solving (21:13–27:02)

  • Zach describes a challenging process working between builder, the builder’s wife (agent/design), and the funding partner.
  • Key strategy: When confronted with “no” from sellers, keep asking why and look for solutions: “If someone says no…it just means, like, not that way or not right now or not in this…Whatever.” (26:54)

Key Takeaways & Advice for Listeners

• Creating Win-Win Transactions (25:31–27:28)
  • Real estate deals work best when both sides’ motivations are considered and aligned: “All real estate investing is, is figuring out how can I create a win-win.” (26:13)
  • Be persistent, ask questions, and don’t assume a “no” is final.
  • Brody emphasizes: “So many times it’s just a matter of asking the right questions, not walking away from the deal.” (26:43)
• Encouragement to Listeners
  • Zach’s Parting Advice: “Go for it. I think I put myself in a box that I wasn’t even aware that I had put myself in. If you’re willing to get uncomfortable, that’s probably the biggest hurdle…Just do what it takes to win if it’s good for you.” (28:18)

Notable Quotes & Memorable Moments

• On Environment Affecting Mood
  • “Whatever you wake up to, in a lot of ways, determines how your day goes.” – Zach (09:24)
• On Gratitude from Change:
  • “I feel way more gratitude living there, which is really interesting and I think that’s very powerful.” – Zach (11:13)
• On Dealing With Obstacles:
  • “There was a lot of resistance, though, for somebody that didn’t know how to navigate any of it.” – Zach (23:09)
• On Negotiating and Options:
  • “No doesn’t necessarily mean that. It just means, like, not that way or not right now or not in this…Whatever.” – Zach (26:54)
• On Pushing Personal Boundaries:
  • “If you’re willing to get uncomfortable, that’s probably the biggest hurdle…just do what it takes to win if it’s a good deal.” – Zach (28:18)

Timestamps for Key Segments

• 00:00–03:03: Introduction; Zach’s early living situation and house hacking.
• 06:25–09:11: Zach expands search, finds the dream house, mindset on “mixing it up.”
• 09:13–12:20: The role of environment in personal growth and gratitude.
• 15:23–18:12: Identity tied to modest roots; thoughts on going “back to the trenches.”
• 18:12–18:45: How Zach leveraged HELOC to fund the purchase.
• 18:46–23:09: The negotiation process, customization, and overcoming seller resistance.
• 23:55–27:28: Problem solving, creating win-win deals, lessons learned.
• 28:18–28:57: Zach’s closing advice—embrace discomfort and go for it.

Final Thoughts

This episode is a real-world, transparent look at what it takes to step into a larger property—whether as a home or an investment—and the internal shifts required to do so. The conversation balances actionable tactics with deep personal reflection, making it valuable for new and seasoned investors alike. If you’re looking for permission (and a roadmap) to think bigger and push beyond your comfort zone in real estate, this is a must-listen episode.