Welcome to “Pain & Gainz,” a new show from Repeal IOU that dives into the real stories behind real estate investing. Our goal? To bring you insights from real guests who are making moves and doing some pretty badass stuff in the world of real estate. I’m your host, TJ Couzens, alongside my co-host, Kelly Smith, a tough-as-nails hard money lender in the Texas market. Today, we’re thrilled to have Clyde Kemp, a titan of the DFW real estate scene.
Pro Tip: Focus for Massive Gains
We’re kicking off our show with a pro tip that Kelly and I believe is crucial for achieving massive gains: focus. Yep, that’s right—focusing on one to three core competencies can drastically amplify your success. Many new investors make the mistake of trying to do everything—flipping, wholesaling, self-storage, commercial, and the list goes on. The result? They end up being a jack of all trades and master of none.
When you try to juggle too many things, you don’t excel in any of them. Focus on perfecting one niche, whether it’s flipping or wholesaling, and build your expertise from there. This strategy demolishes the temptation to spread yourself too thin and enables you to create a standout business.
Meet Clyde Kemp
Clyde Kemp is no stranger to the DFW real estate market. Known for creating high-end, stunning homes in North Dallas, Clyde is the antithesis of your average “no HUD guru.” He produces top-tier properties and has an impeccable eye for detail. His journey in real estate began after several years working various jobs and attending college in Arkansas. He met people in the business, attended seminars, and found the perfect spot—Dallas—to launch his dream.
How It All Began
Before Clyde jumped into real estate, he worked at places like Home Depot. He started with short sales and tackled his first flip—a $270,000 home—against the common advice to start with lower-end properties. His ultimate goal? To build multi-million-dollar homes in California and Florida. He chose Dallas because of the promising opportunities and the thriving real estate market.
Finding and Funding Properties
Initially, Clyde found his deals through relentless networking. He attended every real estate event he could find, built relationships, and leveraged social media to announce his needs. Believe it or not, a crucial part of finding properties lies in the law of attraction mindset. When you put your needs out there, the universe often listens.
Using Private Money
Funding is one of the significant hurdles that new investors face. Clyde relied heavily on networking to meet potential investors, building relationships based on trust and shared goals. Over time, as he proved his ability to deliver, finding funds became easier.
Tackling Construction and Rehab
Vetting Contractors
One of the primary challenges Clyde faced was finding reliable contractors. The key? Asking the right questions to vet their expertise. Don’t shy away from asking detailed, technical questions to ensure they know their stuff.
Managing Delays
Construction delays are inevitable, whether you’re dealing with new builds or flips. Weather, especially in Texas, can throw a wrench into your plans. The smart move? Prepare for delays by staggering projects, ensuring that one doesn’t stall your entire business.
Becoming a Full-Fledged Builder
Mindset Shift
Shifting from flips to new builds required not just skills but a mental adjustment. Clyde emphasizes the importance of thoroughly understanding every aspect of construction, from foundation to finish.
Unique Challenges
New builds come with their own set of trials—permits, weather conditions, and the sheer scale of the projects. Still, Clyde leverages his meticulous vetting process to assemble the right team, ensuring each new build meets high standards.
Knowing Your Market
Comp Analysis
One of Clyde’s secrets to success is physically visiting comparable properties. Online pictures don’t tell the full story; you need to see things up close to understand finishes and quality.
Trends and Preferences
Clyde has noticed shifts in buyer preferences, such as a move away from gray tones. Staying updated on these trends allows him to stay ahead of the competition.
Efficient Inventory Management
Staggering Projects
Managing multiple projects can lead to inventory pile-ups. The solution? Staggering them to ensure a steady workflow. This approach minimizes delays and keeps the business running smoothly.
Differentiating the Product
Standing Out
In a market flooded with flippers, Clyde ensures his properties stand out by upgrading finishes beyond the norm. Simple yet elegant tweaks make all the difference.
Future Plans: Expansion Without Losing Focus
Diving Into Townhomes
Clyde plans to expand by increasing volume with smaller margins. He aims to build more affordable townhomes in bustling areas like Knox/Henderson, tapping into a broader market while maintaining quality.
Overcoming Self-Doubt
Personal Development
For Clyde, overcoming self-doubt involved a lot of personal development, attending seminars, and surrounding himself with positive, successful people. Books, too, played a significant role in his growth.
Final Thoughts
Focus remains the cornerstone of Clyde’s success. By zeroing in on his strengths and building a reliable team, he’s made significant strides in the competitive real estate market. As you venture into real estate, remember to start small, hone your niche, and scale wisely.
Don’t forget to like, share, and comment on this post. Let us know what challenges you face when it comes to focus in your real estate business. Until next time, happy investing!
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