**Podcast Summary: Real Estate Investing School Podcast – Episode 230: REAL DEAL: Breaking Down Cam's $150K Payday
Release Date: January 23, 2025
Host: Brody Fawcett
Guest: Cameron Cathcart
1. Introduction and Guest Background
In Episode 230 of the Real Estate Investing School Podcast, host Brody Fawcett welcomes his friend and esteemed guest, Cameron Cathcart. Cameron, currently residing in Maui with his wife Lexi, shares how his initial plan for a short-term stay evolved into a permanent lifestyle change. Their friendship blossomed after Cameron moved to Maui, and both foresee long-term residency as they plan to enroll their daughter in kindergarten on the island.
Brody Fawcett introduces Cameron’s impressive real estate portfolio:
- 350+ transactions worth over $100 million.
- $10 million in owned real estate.
- Active involvement in both flipping and wholesaling properties.
2. Cameron’s Real Estate Journey
Cameron provides insight into his relatively short yet impactful three-year journey in real estate investing. Prior to diving into real estate, Cameron was a pastor earning $40,000 annually. This role honed his leadership skills, enabling him to manage a church with a thousand members and over a hundred community groups.
Key Points:
- Flipping & Wholesaling: Cameron emphasizes these as “tomorrow money”, providing immediate income while “buying holds” serve as “forever money”, ensuring long-term financial stability.
- Growth Strategy: Aiming to add $4-5 million annually to their rental portfolio, projecting ownership of $60 million by age 40, potentially escalating to $200 million over the next two decades through appreciation.
Cameron Cathcart states at [04:16]:
"If I keep adding, you know, five million bucks a year to our rental portfolio, by the time I'm 40, we'll have... probably 60. $60 million, you know, that we own."
3. Highlighting the $150K Payday Deal
The centerpiece of this episode is Cameron’s most successful flip to date, which netted an impressive $150,000. This deal stands out not only for its profitability but also for the seamless execution despite geographic challenges.
Deal Overview:
- Location: Initially managed from St. Louis, renovated, and sold from Maui.
- Strategy: Utilized a direct mail campaign through a friend who conducted the initial outreach.
- Execution: Managed negotiations, renovations, and sales remotely without physically visiting the property post-purchase.
Cameron Cathcart shares at [09:07]:
"It was our best flip ever. We made, we netted $150,000 on it. We managed the entire renovation and sale from Maui, which was thousands of miles away."
4. Strategies for Finding Off-Market Deals
Cameron delves into his effective methods for sourcing lucrative off-market deals, highlighting his unique approach to wholesaling.
Key Strategies:
- Training Wholesalers: Cameron trains wholesalers to handle marketing while he focuses on deal analysis and negotiations.
- Building Trust: Establishes trust with wholesalers by allowing them to run leads, ensuring mutually beneficial splits.
At [11:23], Cameron explains:
"I became like a wholesaler for wholesalers... They trust me to know, like, I'm gonna get it for the right price."
5. Funding Deals Through Private Lenders
Securing funding is crucial in real estate investing, and Cameron outlines his approach to leveraging private lenders to finance his deals.
Funding Details:
- Private Lenders Network: Developed a strong network of private lenders offering 12% annual interest without origination fees.
- Deal Example: For the $350,000 investment, they contributed $115,000 and financed the remainder through private lending, ensuring a profitable return upon sale.
Cameron Cathcart elaborates at [19:02]:
"We use a private lender, we pay him 12%. On this one, we bought it for 240 and put about 115 into it. We were all in right around 350."
6. Negotiation Tactics and Building Relationships
A pivotal element of Cameron’s success is his adept negotiation skills, particularly in emotionally charged transactions.
Negotiation Highlights:
- Understanding Seller’s Needs: Cameron prioritizes understanding the seller’s emotional and financial motivations.
- Personal Connection: Engages sellers in meaningful conversations to build trust and present himself as the ideal buyer who honors their legacy.
At [16:00], Cameron recounts:
"She didn't care about money. She was in her 80s and wanted to honor her legacy. We had a three-hour conversation about her family's memories in the house."
7. Lessons Learned and Advice for Aspiring Investors
Cameron emphasizes the importance of creating win-win-win scenarios for all parties involved in a deal. His approach ensures satisfaction for the seller, wholesaler, lender, and himself.
Key Takeaways:
- Problem-Solving: Identifying and addressing the unique needs of the seller is paramount.
- Building Trust: Consistently nurturing relationships leads to long-term success and repeat business.
- Adaptability: Being willing to take calculated risks and adjust strategies based on market dynamics.
Cameron Cathcart advises at [31:14]:
"There's houses out there all day long that anybody can buy. You just have to be somebody that solves problems."
8. Conclusion and How to Connect
As the episode wraps up, Cameron shares his philosophy on creating mutually beneficial deals and encourages listeners to adopt a problem-solving mindset in their real estate endeavors.
Connecting with Cameron:
- Instagram Handle: @CamCathcCart
Brody Fawcett concludes at [32:10]:
"Go out, get it done. The whole purpose of this podcast is to take a real deal and go replicate it, turn it into something."
Final Thoughts: Brody highlights the significance of taking actionable steps based on the insights shared, reinforcing the podcast’s mission to educate and empower real estate investors.
Notable Quotes:
- Cameron Cathcart [04:16]: "If I keep adding, you know, five million bucks a year to our rental portfolio, by the time I'm 40, we'll have... probably 60. $60 million, you know, that we own."
- Cameron Cathcart [09:07]: "It was our best flip ever. We made, we netted $150,000 on it. We managed the entire renovation and sale from Maui, which was thousands of miles away."
- Cameron Cathcart [31:14]: "There's houses out there all day long that anybody can buy. You just have to be somebody that solves problems."
Takeaway: Cameron Cathcart’s journey exemplifies how strategic relationship-building, empathetic negotiation, and leveraging private lending can culminate in substantial financial rewards in real estate investing. His approach serves as a valuable blueprint for both novice and experienced investors aiming to replicate similar successes.