Table of Contents - Virtual Real Estate Day Trading with Larry Goins
Dave Debeau [00:00:09] Hey, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast. And today it is my pleasure to be interviewing a very, very experienced real estate entrepreneur who's done multiple different things. He's written books. He's actively investing. He speaks across the country and he definitely knows his stuff. So, Larry, welcome to the call today. How are you doing?
Larry Goins [00:00:34] What's going on? How you been?
Dave Debeau [00:00:36] I've been great. I've been great. So for those folks that haven't had the pleasure of meeting you or hearing you yet, can you tell us a little bit about your background and how you got into this crazy game of real estate investing so many years ago?
Larry Goins [00:00:51] Seriously? You mean there might be somebody out there that's never heard of me? Come on.
Dave Debeau [00:00:55] There's a lot of us up here in Canada right now.
Larry Goins [00:01:00] Yeah, I'm actually fifty eight. I've been investing for over 30 years. My very first deal was an FHA non-qualified assumable loan and I got hooked. I got my contractor's license, I got my real estate license, probably bought and sold over a thousand houses. We still do somewhere between seven to ten to fifteen a month right now.
Dave Debeau [00:01:21] Very good. And what's your bread and butter real estate investing strategies when you're doing seven to ten houses a month? What are you doing with them?
Larry Goins [00:01:30] We're day trading, most of them buying and selling the same day. I've actually bought and sold houses in 12 different states right from my office in Lake Wylie, South Carolina, which is running across the state line from Charlotte, North Carolina. And we do all of our business over the phone. We buy them and sell them over the phone.
Dave Debeau [00:01:48] Well, that sounds very appealing. So you're talking about virtual real estate, day trading. What what does that mean? So for folks that have no concept of what the heck you're talking about. Well, it's
Larry Goins [00:02:01] it's really kind of a fancy word for selling we buy and sell houses at the same day and I just call it real estate day trading. We might do an assignment of contract or we might do a double closing, but we're basically buying and selling the property the exact same day. If we do a double close, we might own it for ten minutes or we might do an assignment. But we like I said, we've done deals in 12 different states. But we focus right now on about seven different counties around North and South Carolina. And I've got a team of people here, my office, and we're just on the phone all day long. Our phone rings about two to three times a week and we're on the phone negotiating with sellers. And then once we get a property tied up, we have somebody go out and inspect the property. Not a home inspection, but they get pictures of the property. They send them back to us and we have a little huddle and go over it. We either move forward, cancel the contract or renegotiate the deal. And then once we decide we're going to move forward, then we start marketing the property and our phone rings is another hundred to one hundred and fifty times a week with buyer leads. Then we're just find a buyer and we salana up closing closed the deal. And right now we're averaging about seventeen to eighteen thousand dollars profit per deal. And that's without ever touching the property
Dave Debeau [00:03:19] or yourself even having to lay eyes on it, except for the photos that get sent to you, basically,
Larry Goins [00:03:25] correct? Correct. Now, occasionally. I mean, listen, I love real estate, Dave. I love it. Right? So sometimes I get an itch and I'll go out and I'll look at a property and whatnot, and I still love it. I still I still do some of it myself. Going out to the properties. It's not really rare, but it's kind of rare that I would personally go out like I'll give you an example. We've got a house right now that we're buying for sixty five thousand dollars. Now, that's a little high for us. Most of the houses we buy are 10, 20, 30, 40 thousand. But this is one sixty five and it's a two thousand square foot house, nice neighborhood. And it's full of stuff. I mean, they just lock the doors. The owner moved to Florida with their daughter and just lock the door. So we're buying the house with everything in it. And it's got antiques, it's got all kinds of stuff in it. So this is what we might hope for a few weeks and ramble through all the good stuff.
Dave Debeau [00:04:22] Well, that makes sense. So there I got to ask you this. It sounds like you've definitely got your marketing machine up and running and humming all cylinders. How do you find these properties that you're trading? How do you.
Larry Goins [00:04:37] Well, there's a lot of different ways you can find deals. In fact, I've got sixty seven different ways that I talk about in my book. But there's only a few things that you really primarily use for the majority of your leads, like no one would be direct mail. Now, a lot of people also cold calling. You can take your direct mail lists, you can have it appended, meaning have the phone numbers look up, you're going to get about 50 to 60 percent of them, the phone number and then you could call. If you don't want to call column, you have a service to do it. Or you can also hire via a virtual assistant to do it for you. You can also get a calling a predictive dialer like Majo or Balkan's seven or a call tools. And you can have those calls for you. And there are two or three lines at a time. And then you just get in on the phone, you're going to have about eight to ten connects an hour and get about one to two leads develop.
Dave Debeau [00:05:34] Well, that's awesome. So just because a lot of our listeners are up here in Canada and things work a little bit differently, how are you finding this list? How are you determining who you want to be approaching? Are these folks that are behind on their taxes or behind on their mortgage payments or how are you? How are you determining who you want to approach?
Larry Goins [00:05:54] We you know, that's the million dollar question. A lot of people say, well, what list do I use? Just get a list and just start mailing to it. Right. Because whether it be probate, pre probate. Right. Or whether it be code violation or back taxes or properties with Lean's or second Lean's or whether it be absentee owners or out-of-state owners, I just find a list to start marketing to it. Really? That's really what it boils down to. The more you market, the more calls you're going to get, the more calls you're going to get, the more deals you're going to get.
Dave Debeau [00:06:30] That makes sense. So how are you analyzing your properties from a distance? Again, you say you are you're having somebody go out there and take a look at it, take some pictures, that sort of thing. How are you analyzing how are you determining how much to offer then? How much to renegotiate?
Larry Goins [00:06:47] Well, that's really after the fact that we renegotiate or get the pictures after the fact, because the first thing we do is get it under contract right now. I know we will negotiate if we need to, but, you know, it's just like all the other. Stuff, I mean, HRB Times point seven after repaired Bilu times point seven, seventy percent minus repairs, minus what we want to make and that's our offer and I always start way low, write a lot of people, they want to make three to five thousand dollars a wholesale deal. I want to make twenty thousand dollars on the wholesale deal. Right. So I may not get as many deals as other people, but when I get a deal, it's not a deal. It's a steal. It's a home run.
Dave Debeau [00:07:28] Yeah. So you've got it. You've got your profit margin definitely put in there. And then it gives you a little bit more wiggle room as well with your with your buyers. Right. So absolutely. Absolutely. Able to sell these properties in. In a day or even a couple of hours, like you're talking about there?
Larry Goins [00:07:45] Well, I've always said it's much easier to find a house for a buyer than a buyer for a house. And that is true. In other words, the key is to start building your buyers list from day one. I used to tell people and still do as far as that goes to work as hard build in your buyers list as you do at finding deals. Right when we get a property under contract. We have a specific marketing strategy that we go through and I outline it in my book, but we have this specific marketing strategy. We post the property on about 90 different Facebook groups. We posted on Craigslist. We put out twenty five to thirty bandit signs that say foreclosure or handyman special. And we put those signs out and we also advertise it on connected investors and on our website and send out an email to our list. So even though a person who inquires may not buy that specific house, now they're on our buyer's list and we have a buyers list of thousands and thousands of people. And we're always, always building our buyers list to add more people to it. So what happens eventually is sometimes they start fighting over your deals. And when you get to that point and you have a buyer that says, hey, I want to get this property, you're asking for 99, I'll give you forty five. When you get to that point, you can say, I'm sorry, but it's going to sell for forty nine man. If you want it, I'll let you have it. But if you reach back to me in the next day or two, it's going to be gone.
Dave Debeau [00:09:16] Yeah that's that's beautiful. And that's the other advantage I would imagine, because you focus on what do you say you have you've got seven different market areas that you really focus on primarily. Is that correct?
Larry Goins [00:09:27] Yeah, we market in about seven different counties. Right. I want to be within about an hour and a half of where I live. And we've got some people in the office. Sometimes they go out and look at the properties. But you can also if you're in Washington State or Washington, D.C. or California and you want to buy in a lower priced area, then you can hire a local boots on the ground person to go out and do those things, like the lockbox on the door, takes pictures of the property, show the property if they need to, that sort of thing.
Dave Debeau [00:09:59] And that's a beautiful thing. And get about that focus. And then the other thing is what I'm hearing is you aren't shy like like you definitely get the word out about your deals every single way that you possibly can. You're not just focusing on one thing. You have about eight ways to Sunday.
Larry Goins [00:10:17] Absolutely. And one thing I've learned is you have to tell your sellers, hey, look, I'm always building my buyers list. So even though I'm giving you thirty thousand dollars for your property, you may see it posted online for forty or fifty thousand. It doesn't mean that I'm going to sell it for that. I might sell it for more on myself or less. I might keep it and rent it out. I might fix it up and sell it or I might sell it as is. But what I'm doing is I'm building my buyer's list and chances are people that call about your house is not even going to buy your house anyway. I'm building my buyer's list to sell them future deals.
Dave Debeau [00:10:55] Really sounds like you've done that right in with automation. So can you talk just a little bit about the different ways that you've automated your real estate business?
Larry Goins [00:11:03] Oh, yeah, man, there's so many different ways. We have a CRM called Podio and we use a phone called Smartphone Smart Phone, Smart, smart phone dot know. And it's designed to be be used with Podio. So when the phone rings, OK, I don't know if you can hear it, but the phone's ringing right now. We get about two to three hundred calls a week of motivated sellers. Right. So when the phone rings that call automatically goes into Podio. And even if the person if one of my guys answer is live or if it goes to voicemail, the recording is right in our car. I keep pointing up here because I have dual monitors above this one. I've got three monitors in my office. Right. So it goes into Podio and then we could go back and listen to the call any time we want to and we put our notes in. And then what happens is I've got a lead manager and she will she will listen to the call. She'll assign it out to an acquisition person and then check this out. What happens is they will qualify the lead. They separate the suspects from the prospects. Once they get a qualified seller lead, they set of task for me. All right. And then I get on the phone and I make them a cash offer. Now, once my guys have been with me for a while, some of them can do this and some of them can. Once they've been with me for a while, three to six months, they can make their own offers. But until then, I'm making all the offers because I'm a very hard negotiator. And that doesn't mean, like, I'll make people mad or anything like. And it just means I've got to buy a really, really deep I mean, most of our properties we're going to buy for ten, sell it for 20. We'll buy for 15. Sell it for 30. Will buy it for 20. Sell it for 40. We just closed one last week. We bought for 20 and sold it for 50. So we're we're averaging anywhere from five thousand to thirty five or forty thousand per deal, an average of about 18 grand profit.
Dave Debeau [00:13:06] Nice. Nice. It sounds like you use virtual assistants quite a bit. So can you talk to us a little bit about your experience with that and how you got that rolling?
Larry Goins [00:13:14] We do. We use some vas not a lot. Now, back when we were doing a lot of hot stuff, when when there was a lot of foreclosures, I had a VA that was putting in HUD bids every day for about two to three hours a day. But right now there's not near as many foreclosures as there used to be. So you have to find what's called off market deals. And that's why you need to do direct mail, cold calling, paper click advertising, Craigslist ads, bandit signs, driving for dollars for dogs and all those other things.
Dave Debeau [00:13:44] Yeah, you're doing everything all the time. That's why you get that's why you're getting hundreds of calls every every week is because you don't rely on one or two things. You do everything consistent. Exactly.
Larry Goins [00:13:56] Exactly. And I love it. I mean, I know there's a lot of people that get to this point. You know, they're like, well, shouldn't you have other people doing this? But I enjoy it. I love it. Right. I'm in the thick of it. I mean, I've got my office set up. I've got a guitar right over here on the stand while I'm on the phone. I'm playing guitar and I've got all kind of stuff that I could play with while I'm on the phone and I'm just doing music and I love it,
Dave Debeau [00:14:21] don't you think? Well, the other thing, a beautiful thing is you've got to delve in. So you're doing your highest income activity, which is making offers. Everybody else takes care of all the detailed stuff that you don't have to do anymore. But I imagine it took quite a while to get to that stage and put those systems in place to get to where you're just making offers.
Larry Goins [00:14:43] You know, you would be surprised. It really does. It really doesn't. I mean, I used to do it all myself when I first started. I would do the marketing, the phone would ring. I'd take the call and negotiate the deal. Then I would market the property and find a buyer and handle the closing of me. Now we've got a lead manager, we've got a closing manager, acquisition, people, salesperson. And and all I'm really doing is the highest payoff task. I'm on the phone making offers all day long, and that's what I doing.
Dave Debeau [00:15:15] That's beautiful. Well, time flies when we're having fun here, Larry. So as we wrap up the call, what do you know? I'm sure you've picked a lot of people's curiosity. If they want to find out more about what you're up to and and how you're doing this virtual real estate day trading, what can they do?
Larry Goins [00:15:33] Sure. I wrote a book called Getting Started on Real Estate Day Trading. It's available wherever books are sold. But if you'd like to get a free copy, we'll send you a free digital copy. OK, you can call eight, seven, seven. Larry, go eight, seven, seven. Larry, go and talk to Zenobia and just tell her you want the investors kid. That'll include this book. It'll include I've got another book here somewhere. My HUD homes have a book and some other things as well. So just ask it for the investors. You'll get this and we'll send it out to you. My main website is Larry Goerens dot com. I am, yes. And I really, really appreciate you having me on.
Dave Debeau [00:16:13] It's been a lot of fun, Larry. I love talking with people that are rocking and rolling it in real estate and fellow marketers, and they're definitely both. So hats off to you to keep up the good work.
Larry Goins [00:16:23] Thanks a lot. I appreciate it.
Dave Debeau [00:16:25] All right, everybody, till next time. Take care. God bless and talk to you soon. Well, thanks very much for checking out the property profits podcast. And you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review it. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.