Real Estate Investing School Podcast
Episode 256: REAL DEAL: Winning Deals in Competitive Markets
Release Date: April 24, 2025
Host: Brody Fossett
Guest: Tony Duplex Franks
Introduction
In Episode 256 of the Real Estate Investing School Podcast, host Brody Fossett welcomes Tony Duplex Franks for a candid discussion on securing winning real estate deals in highly competitive markets. Filmed live from Maui, this episode delves deep into Tony's journey from reading foundational real estate literature to successfully purchasing his first duplex during the tumultuous COVID-19 pandemic.
Tony’s Unique Branding and Passion for Duplexes
Tony Franks introduces himself with a memorable twist, revealing that he legally changed his middle name to "Duplex" to reflect his real estate focus.
- [00:42] Brody Fossett: “And you're here, Mr. Tony Duplex Franks. So is that your real middle name, Duplex?”
- [00:57] Tony Franks: “All I want to buy is duplexes. I just absolutely love duplexes.”
This branding underscores Tony's commitment and specialization in duplex investments, setting the tone for the episode's focus.
The Catalyst: From Inspiration to Action
Tony attributes his leap into real estate to pivotal moments of inspiration and action.
- [02:45] Tony Franks: “Buying my first property absolutely changed my life.”
Tony discusses how reading "Rich Dad, Poor Dad" and Brandon Turner’s "The Book on Rental Property Investing" provided both the mindset and technical knowledge necessary to embark on his real estate journey. Encountering Brandon Turner personally in Maui further solidified his resolve to act swiftly.
- [03:34] Tony Franks: “I knew exactly how to buy my first deal and I knew exactly what to look for.”
Navigating a Competitive Market: Securing the First Duplex
Amid the challenges of the COVID-19 pandemic, Tony shares the story of acquiring his first duplex in Colorado Springs.
- [10:15] Tony Franks: “It was a one-bedroom in the front and a one-bedroom in the back, totaling 1,000 square feet.”
Facing multiple offers over asking price, Tony employed an escalation clause to remain competitive.
- [12:19] Tony Franks: “An escalation clause allows you to increase your offer automatically up to a specified limit if there are higher bids.”
Despite initially planning to cap his offer at $380, Tony's relationship with his lender and realtor played a crucial role in securing the deal at a $5,000 over asking price, ultimately boosting his cash flow significantly.
- [13:56] Tony Franks: “It changed the game for me and it boosted my cash flow out the wazoo.”
Financing the Deal: Strategic Use of FHA Loans
Tony leveraged his stable income as a software engineer to secure favorable financing terms.
- [14:21] Tony Franks: “I did an FHA loan with 5% down at a 2.75% interest rate, which was really low.”
This strategic financing allowed him to maximize his investment with minimal upfront capital.
Maximizing Returns: House Hacking and Short-Term Rentals
Living in one unit of the duplex, Tony transformed the other into a highly successful short-term rental.
- [15:10] Tony Franks: “I turned the back unit into a short-term rental on Airbnb, and it booked every night for six months.”
This approach not only provided substantial monthly cash flow ($4,000 over the mortgage) but also demonstrated the power of combining owner-occupation with strategic rental strategies.
- [16:12] Tony Franks: “It's a life-changing formula.”
The Power of Action Over Analysis
Brody emphasizes the importance of taking action, highlighting Tony's swift transition from learning to implementation.
- [05:37] Brody Fossett: “... how many people have learned so much but haven't taken action. Applaud you for just going and doing this.”
Tony echoes this sentiment, encouraging listeners to prioritize action to achieve their real estate goals.
Living the Dream: Passive Income and Community Support
Tony's real estate success has afforded him the freedom to live in Maui and actively support his community, especially during crises like the Maui fires.
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[18:35] Brody Fossett: “You've been helping out a ton with all the Maui Fire stuff... because you're making passive income through real estate.”
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[19:00] Tony Franks: “I'm a huge proponent in living your best life as quickly as you can because you're not promised tomorrow.”
His ability to generate passive income has not only provided financial stability but also enabled him to contribute meaningfully to his community.
Key Takeaways and Strategies
- Specialization: Focusing on a specific property type, like duplexes, can streamline investment strategies and branding.
- Education: Combining mindset shifts (from books like "Rich Dad, Poor Dad") with technical knowledge (from Brandon Turner's works) is crucial.
- Competitive Tactics: Utilizing tools like escalation clauses can secure deals in hot markets.
- Strategic Financing: Leveraging favorable loan terms, such as FHA loans, maximizes investment potential with minimal initial capital.
- Diversified Income Streams: Combining owner-occupation with short-term rentals can significantly boost cash flow.
- Action-Oriented Mindset: Prioritizing action over endless learning accelerates progress and success in real estate.
Notable Quotes
- Tony Franks [00:00]: “The sky's the limit if you open up your mind to what's possible.”
- Tony Franks [03:34]: “I knew exactly how to buy my first deal and I knew exactly what to look for.”
- Tony Franks [12:19]: “An escalation clause allows you to increase your offer automatically up to a specified limit if there are higher bids.”
- Tony Franks [16:12]: “It's a life-changing formula.”
- Brody Fossett [19:54]: “The sky's the limit if you open up your mind to what's possible.”
Connecting with Tony
Listeners interested in Tony’s journey and seeking to emulate his success can connect with him on Instagram:
- Instagram Handle: @Tony_Duplex
Conclusion
Episode 256 of the Real Estate Investing School Podcast offers a compelling narrative of swift action, strategic investment, and the transformative power of real estate. Tony Duplex Franks' firsthand experiences provide invaluable insights for both novice and seasoned investors aiming to thrive in competitive markets. By blending education with decisive action, Tony exemplifies how to turn real estate aspirations into tangible, life-changing achievements.