Podcast Summary: The Entrepreneur DNA | EP 42: The Strategy That Will Revolutionize The Future of Real Estate with Will Denis
Introduction In Episode 42 of The Entrepreneur DNA, host Justin Colby welcomes Will Dennis, a seasoned real estate investor and innovator, to discuss a groundbreaking strategy poised to transform the real estate landscape—Reverse Flipping. Released on October 21, 2024, this episode delves deep into Will’s unique approach to real estate investing, offering invaluable insights for both realtors and investors seeking to scale their businesses amidst a challenging market.
Understanding Reverse Flipping Will Dennis introduces the concept of reverse flipping as a novel approach to real estate investment. Unlike traditional wholesaling or fix-and-flip strategies, reverse flipping involves purchasing the deed to a property upfront, even in problematic situations such as negative equity, foreclosure, or properties with multiple heirs.
Key Elements of Reverse Flipping:
- Direct to Seller Transactions: Reverse flipping typically targets off-market deals but can also apply to on-market properties.
- Problem Solving: Focuses on properties with issues like bankruptcies, pre-foreclosures, or IRS liens, thereby reducing competition.
- Flexibility for Investors: Post-purchase, investors have the flexibility to decide whether to sell, hold, lease, or further develop the property.
Notable Quotes:
- Will Dennis [03:03]: "So you buy the deed to the property and you fix all the hair... reverse mortgages, bankruptcies, pre foreclosure... you can choose your exit after the fact."
- Justin Colby [06:11]: "This is a very effective strategy for like 20 different reasons."
Overcoming Market Challenges Colby and Dennis discuss the current real estate market's obstacles, including high competition, low inventory, and escalating costs per lead. Reverse flipping emerges as a solution to these challenges by enabling investors to secure properties with minimal competition and reduced marketing expenses.
Significant Insights:
- Cost Efficiency: Will highlights that many deals can be closed with minimal upfront investment, sometimes as low as $1,000, leading to substantial returns.
- High Success Rates: By leveraging extensive experience in loss mitigation and working closely with legal experts, Will’s model boasts a 70% success rate in closing deals, significantly higher than the industry average.
- Tax Advantages: Owning deeds allows investors to benefit from significant tax write-offs, with potential savings of $30,000 to $50,000 annually for every million dollars invested in real estate.
Notable Quotes:
- Will Dennis [31:02]: "About every million dollars that you own in real estate... it’s probably 30 to $50,000 per year in non-taxable income."
- Justin Colby [31:56]: "That's right... if you just did it the way you're exactly saying... you just buy that D and just hold it."
Strategic Partnerships and Community Building Dennis emphasizes the importance of collaboration over competition. By partnering with realtors and investors, his team can efficiently process and manage deals, ensuring mutual success. The creation of a robust community allows for continuous deal flow and shared expertise, fostering an environment where members support each other’s growth.
Notable Quotes:
- Will Dennis [39:41]: "Amateurs compete, professionals collaborate."
- Justin Colby [46:24]: "Guys, Willie numbers on Instagram. Will Dennis is his name. Reverse flip.com forward/Justin, give him the deals. JV with them now."
Practical Steps to Get Started For listeners eager to implement reverse flipping, Dennis outlines actionable steps:
- Join the Community: Engage with the free Facebook group to connect with experienced members.
- Identify Dead Deals: Focus on problematic properties that traditional methods overlook.
- Leverage Expert Support: Utilize the in-house legal and loss mitigation teams to streamline transactions.
- Use the Platform: Submit deals through reverseflip.com for processing and partnership opportunities.
Notable Quotes:
- Will Dennis [28:22]: "Join our free Facebook group... or just download a list... go after reverse mortgages."
- Justin Colby [45:11]: "Guys, Willie numbers on Instagram. Will Dennis is his name. Reverse flip.com forward/Justin, give him the deals. JV with them now."
Case Studies and Success Stories Throughout the episode, Will shares compelling case studies demonstrating the efficacy of reverse flipping. One notable example involves purchasing a property at 43 cents on the dollar in South Florida, resulting in a substantial profit margin and significant tax savings. These real-world applications underscore the strategy’s potential to generate high returns with minimal risk.
Notable Quotes:
- Will Dennis [43:35]: "I am probably the only guy in the single-family space right now with my team that is buying at under 45 cents on the dollar in America per asset."
- Justin Colby [44:37]: "That's wild. It's wild. But that's our average."
Conclusion The episode wraps up with a strong endorsement of reverse flipping as the future of real estate investment. Dennis emphasizes that this strategy is adaptable across various property types, including commercial real estate, and remains resilient regardless of economic fluctuations. By adopting reverse flipping, realtors and investors can unlock unprecedented opportunities, maximize profits, and scale their businesses effectively.
Final Quotes:
- Justin Colby [45:25]: "Guys, if this helped at all in the real estate space or in business, make sure you share this with two of your friends."
- Will Dennis [40:44]: "Reverse flipping is 1000% the new way to do real estate. It's just what it is."
Resources Mentioned:
- Reverse Flip Website: reverseflip.com
- Facebook Group: Reverse flipping Facebook group
- Instagram: @WillDennis
Takeaway Will Dennis’s reverse flipping strategy offers a robust framework for overcoming common real estate challenges, providing a scalable and profitable path for entrepreneurs. By leveraging expert partnerships, focusing on dead deals, and utilizing innovative financial strategies, investors and realtors alike can revolutionize their approach to the real estate market.