Real Estate Investing School Podcast

Episode 57: REAL DEAL: 100K In 3 Months!

Date: May 25, 2023
Host: Brody Fawcett
Guest: Anton Z (Anton J., co-founder of REI Call Center)

Episode Overview

In this "Real Deal" episode, Brody Fawcett interviews Anton Z, a real estate investor who made nearly $100,000 in profit from a single deal in just three months. The episode is a deep dive into Anton’s first major flip, how he discovered and managed it, and the crucial lessons that propelled him from a comfortable six-figure corporate job into full-time real estate investing. Anton shares practical, step-by-step insights, negotiation tactics, and how creative thinking can turn even the scariest deals into game-changing opportunities.

Key Discussion Points and Insights

Anton’s Background and Entry Into Real Estate (00:00–02:49)

• Anton started real estate full-time during COVID in 2020, initially focusing on wholesaling after being inspired by a podcast and a mastermind featuring Gonzalo Corzo.
• His first few wholesale deals netted about $5,500, but he realized the potential scale after this particular deal.

Quote:
"I was making a little bit of money here and there. I thought I was doing great. And then this deal came along...and my whole perception on real estate changed."
— Anton Z (02:27)

Finding the Deal: Cold Calling and Off-Market Properties (02:49–05:31)

• Anton found a single-family home in Port St. Lucie, Florida, through cold calling—an off-market lead strategy.
• The property was in terrible condition (mold, holes in walls, missing doors).
• Locked it up for $115,000 without seeing it in person initially.

Quote:
"This is the type of property where you would want to go in with a Hazmat suit on."
— Anton Z (03:24)

The Importance of Taking Action and Negotiation (05:31–07:36)

• Anton initially aimed for a $10,000 assignment fee but lowered it to $5,000 after seeing the property’s true condition.
• Brody emphasizes the importance of getting properties under contract quickly, noting that waiting leads to missed opportunities.
• Both discuss how due diligence and negotiation often happen after contract, not before.

Quote:
"Nothing hurts to get something under contract. No harm, no foul. It's part of the due diligence process."
— Brody Fawcett (06:00)

Renegotiation Tactics and Overcoming Fear (07:36–08:34)

• Anton champions renegotiating contract terms after inspection reveals more issues.
• The worst a seller can say is "no," so always ask.

Deciding to Flip Instead of Wholesale (08:51–10:30)

• After discussing with his girlfriend, Anton decides to flip the house instead of wholesaling it—a pivotal encouragement from his partner.
• He calls the seller and negotiates to purchase the property using a primary residence FHA loan with only 5% down, despite the seller expecting a cash buyer.

Quote:
"Sometimes...you have to be on the same page with your partner because without her pushing me a little bit, I probably would have just wholesaled it and made a quick $5,000..."
— Anton Z (09:20)

Funding and Rehab: DIY and Bootstrapping (10:30–12:56)

• Anton uses savings for the 5% down payment and $20,000 for rehab.
• He and his girlfriend put in long hours after work, leveraging help from her cousin for the repairs.
• Rehab finished in about one month, largely via sweat equity.

Quote:
"I would get off work...drive over there...work until midnight, 1 o'clock, drive back, get to work and do this for a month. It wasn't easy."
— Anton Z (11:42)

The Exit: Selling for Maximum Profit (12:57–13:43)

• All-in for $135,000.
• Listed for $230,000, sold for $225,000, netting ~$90,000 profit.
• On the same day, closes an $8,000 wholesale deal, totaling $98,000 in one day.

Quote:
"When I saw that check, Brody, the whole thing in your mind changes...your whole perception changes, and that's definitely when you understand that there's so much power in real estate."
— Anton Z (14:06)

Tax Strategy and Leveraging Profits (14:36–16:44)

• Consults a CPA and executes a 1031 exchange to avoid capital gains tax, rolling profits into a cash-flowing duplex (now netting $1,500/month).
• Utilizes legal tax loopholes to maximize investment returns.

Snowballing Success & Momentum (16:44–18:20)

• Brody and Anton reflect on how “hard” the initial push is but stress how momentum builds and makes subsequent deals easier.
• Brody likens it to pushing a vehicle or snowball; the hardest work is at the start.

Quote:
"Once it gets going, it's really hard to stop. And it gets easier and easier and easier."
— Brody Fawcett (17:36)

Key Lessons, Creative Thinking, and Advice for Investors (18:20–20:37)

• Anton shares that beginner’s luck played a role, but action and creative problem-solving were critical.
• Importance of not being afraid to negotiate and looking for off-market deals to maximize potential equity.
• Anton specifically recommends beginners focus on off-market deals for the best ROI.

Quote:
"Don't be afraid to be creative and don't be afraid to negotiate with the seller...off market...is where you have the most equity."
— Anton Z (19:28)

Most Memorable Moments & Notable Quotes

• Early cold calling grind:
  "I jumped into real estate...knowing nothing...other than listening to a couple podcasts." (03:07)

• On confronting fear:
  "I was scared shitless every single day that I was going out." (18:40)

• Transformational moment:
  "I just made 98,000 in one day. I mean, it was three months, but...it felt like it was in one day." (14:03)

• Brody on momentum:
  "You just need to get that momentum sometimes...pushing that snowball, that’s the hardest part." (17:36)

Actionable Takeaways & Replicable Steps

1. Start before you’re ready: Don’t overanalyze. Get deals under contract and use the due diligence period to assess and negotiate. (05:56)
2. Leverage off-market leads: Cold calling and direct seller outreach provide access to better deals with more equity.
3. Creative financing: Negotiate terms—don't assume you have to offer cash; ask if the seller will accept alternative financing (e.g., FHA loan).
4. DIY and sweat equity: Especially on your first deal, be willing to do the dirty work to maximize profit and gain experience.
5. Partner support: Having a supportive partner can help push you to take bolder action.
6. Consult with professionals: A good CPA can help you maximize after-tax returns with tools like the 1031 exchange.
7. Reinvest profits: Roll gains into cash-flowing assets to compound wealth.

Important Segment Timestamps

• Background and entry into real estate: 00:00–02:49
• Finding and locking up the deal: 02:49–05:31
• Visiting the property and renegotiating: 05:31–07:36
• Deciding to flip: 08:51–10:30
• Funding and rehab: 10:30–12:56
• Sale and payday: 13:08–14:06
• Tax strategy and reinvesting: 14:36–16:44
• Key lessons and advice: 18:20–20:37

Connect with Anton Z

• Instagram: @Antonzrei
• REI Call Center: reicallcenter.com
• Open to DMs about real estate, cold calling, or investment questions.

"Don’t be afraid to reach out to people and ask questions...I always try to help as much as I can, especially if you are asking a good question."
— Anton Z (21:50)

Closing Encouragement

"Remember, it's not about what you know, it's about what you do. Don't just get motivated—go out and act on it. Real estate investing has the power to change your life if you apply the principles."
— Brody Fawcett (23:18)

This episode is packed with actionable insights on finding, funding, and flipping off-market properties—perfect for both new and aspiring real estate investors. Anton’s journey shows the rewards of taking fast action, staying creative, and leveraging relationships and professional advice to turn challenge into opportunity.