Investing in real estate can be a lucrative path, but it’s not for the faint-hearted. It takes grit, determination, and a lot of learning. Grant Kemp of CreativeCashFlow.com offers insights that could be game-changing for both newbies and seasoned investors. Here’s how he navigated his path and what you can learn from his journey.
Real Estate Investing Journey
Getting Started
When you first start, it’s easy to fall into what Grant calls “analysis paralysis.” You can study and learn all you want, but at some point, you need to take the plunge.
Studying and Learning
Grant started his journey by hitting up websites, forums, and resources like BiggerPockets. He spent a lot of time studying and figuring out what could and couldn’t work for him.
Finding the First Deal
Before he quit his 9-to-5 job, Grant closed his first deal within six months of studying. His first venture was a house-hacking scenario: he bought a duplex, lived in one half, and rented out the other. This move not only gave him a place to live but also created a steady cash flow.
Quitting the 9-to-5 Job
Two months after his first deal, Grant realized that working a traditional job was hindering his potential in real estate. He prayed about it, felt led to leave, and did just that. Six months after his initial deal, he fired his boss and went full-time into real estate investing.
Partnering with an Attorney
One strategic move that set Grant apart was his partnership with Scott Horne, a seasoned investor and attorney.
Finding the Right Partner
Scott kept appearing in Grant’s Google searches as the go-to guy for owner financing in Texas. Grant pursued a partnership aggressively, bringing deals to Scott and showing his determination.
Learning from an Experienced Investor
Partnering with Scott gave Grant unparalleled access to decades of knowledge. He learned what to do in complex situations and gained invaluable experience.
Benefits of Partnership
Grant’s partnership with Scott enabled him to share resources, expand his skill set, and drastically shorten his learning curve.
Owner Financing Niche
What is Owner Financing?
Owner financing allows you to buy or sell property by setting up installment payments directly between the buyer and the seller, bypassing traditional mortgage lenders. This opens the door to more creative, potentially lucrative deals.
Typical Owner Financing Deal
Buying Subject to Existing Mortgage
Grant often takes over a homeowner’s existing mortgage payments, especially in foreclosure scenarios, making it a win-win.
Repairs and Costs
Some houses need minimal repairs; others might need extensive work. Grant estimates typical repairs cost between $5,000 and $30,000, depending on the property’s condition.
Selling with Owner Financing Terms
Owner-financed houses can be sold at a higher price because they include both the mortgage and the property. Buyers often pay a premium for the opportunity.
Higher Sales Price
Properties sold with owner financing can often bring in 5-10% more than their market value.
Down Payment
Grant collects a down payment that can be as much as $10,000 upfront.
Monthly Cash Flow
He averages between $350 and $500 monthly per property. Once the underlying lien is paid off, cash flow can jump to $800 or more.
Examples and Numbers
Imagine buying a house with an ARV of $100,000 for $85,000, catching up $5,000 in back payments, doing $5,000 of repairs, and then selling it for $105,000 with owner financing.
Marketing and Deal Flow
Importance of Daily Marketing
Marketing isn’t a one-and-done activity. It’s something you need to engage in every single day.
Propelio Leads
One resource that Grant and other investors swear by is Propelio. Getting fresh leads daily can be a game-changer.
Direct Mail Marketing
Daily commitments to sending out direct mail can yield incredible results. One of Grant’s students committed to sending 20 letters a day and landed a deal worth $60,000 in equity within three weeks.
Other Marketing Strategies
Some other marketing strategies include:
- Networking events
- Online advertising
- Cold calling
- Social media engagement
- Flyer distribution
Finding Deals vs. Finding Money
Money Will Follow Good Deals
Many newbies worry they need the capital before they can start. In reality, money chases good deals.
Talking to Investors and Networking
Connect with other investors; let them know what you’re looking for. You never know who might fund your next deal.
Private Money Sources
IRAs, Retirement Accounts
Offer higher returns than traditional investments to attract funds from IRAs and retirement accounts.
Higher Returns
People making 4-6% on traditional investments are often very interested when you offer them 8-10% returns.
Prioritizing Income-Generating Activities
Differentiating Between Busy Work and Money-Making Tasks
Focus on tasks that get you paid. Busy work like organizing your desk won’t bring in deals.
Today Money vs. Tomorrow Money
Grant emphasizes a dual approach: focus on immediate cash flow (today money) while also building long-term investments (tomorrow money).
Setting Up Systems and Outsourcing
Set up systems to automate repetitive tasks. This frees you up to focus on high-value activities.
Goals and Future Plans
Private Money Fund
Grant is working on a fund that will make large sums of private money available for buying, fixing, and flipping properties with owner financing exits.
Fix and Flip with Owner Financing Exit
He plans to continue leveraging this model for sustainable growth and high returns.
Education and Training
Grant is also focusing on educating new investors, helping them avoid common pitfalls and succeed faster.
Trusted World Charity Work
Mission and Purpose
Trusted World provides supplies to nonprofits working directly with those in need. From clothing to food, they streamline resources for maximum impact.
Helping Communities and Non-Profits
Grant’s involvement with Trusted World showcases how real estate success can empower you to give back in meaningful ways.
Advice for New Investors
Taking Action and Being Aggressive
Don’t let fear paralyze you. Take the plunge and learn as you go.
Overcoming Fear and Analysis Paralysis
It’s okay if you don’t know everything. Start walking, and you’ll figure it out along the way.
Treating It as a Business, Not a Hobby
If you’re serious, treat it like a job. You can’t dabble in real estate and expect big returns.
Partnering and Networking with Experienced Investors
Don’t shy away from partnerships. Learn from those who have been there and done that.
Abundance Mindset
Think big and stay open to opportunities. The market is vast, and there’s plenty to go around.
Final Thoughts
Jumpstarting your real estate investing journey requires a combination of education, action, and the right partnerships. Grant Kemp’s story highlights the importance of overcoming analysis paralysis, leveraging creative financing techniques like owner financing, and continually marketing to find deals. By following his example, prioritizing income-generating activities, and maintaining an abundance mindset, you can navigate the challenges and seize the opportunities in real estate investing.
Remember, treating your investments as a business and continuously learning from experienced investors can pave the way for sustained success and financial freedom.
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