PART 1
By Jamie Edwards, jbe2557@yahoo.com
This month we are going to talk with an investor who has contributed a great deal to CFRI and has proved himself as one of the most successful investors in central Florida, Hunter Paschall. He is an investor, a teacher and resource for all of us to learn from. After interviewing Hunter, I thought it would be best to meet him in person, and after our brief time together, I have discovered you are never too old or young to start and that you can overcome ALL obstacles if you want to.
What’s your story; tell me abut yourself…how did you get started? Was there a moment in time that you made a decision to do something different? And why real estate?
I always liked the art of buying something and selling it for a profit. All my life I considered this an art form because I use my imagination to create something from nothing. Since I got started in real estate I have never second guessed this career move. I knew this is where I wanted to be. I challenge myself on a daily basis to do the next best deal, be it creative or having a payday being bigger than my highest deal to date.
What is the most money you made, and how did you do it? I have made $310,000.00 on just one deal from start to finish.
It was a residential home. I was given a free house from the seller. He had bought it through another investor and found himself holding a lot of debt on a house that was not returning any cash flow. I contacted him through persistence and did my due diligence and it paid off. I negotiated the debt owed on the house from the bank (short sale). I then marketed the home and sold it to another investor below market value. The numbers looked like this. Old debt owed on the house, $980,000.00 (1st & 2nd Mortgages). I got a discount in the amount of $646,000.00 for both mortgages. I sold the house after I spent $1500.00 for clean up for 1.1 million (the new appraised price).
What is the most money you lost, and what would you have done differently?
I have never lost on any deal and I have bought and sold over 125 houses now. The only money I have lost is on the houses that I have controlled and the bank did not want to sell it to me after I provided them with the value. I know this year I spent about $1500.00 on putting a deal together and the bank declined it. I am still working on that deal with the bank. The upside is that if they would have accepted my offer I had the potential to make a minimum of $500,000.00 on that deal. We are talking about a 4.5 million dollar house. So as far as buying and selling, I have never lost on one. Sometimes the cost of doing business is a little higher on some than others, but I am willing to risk $1500.00 for $500,000.00 profit any day of the week.
Based upon your experience, where do you see the most growth, and why? There are a few ways I look at this. For me the first growth is from learning from a mentor or a coach that has been where I am and became successful. When I started I did not have much money lying around. But for me to take what little I had and spend it on someone’s idea of training or coaching was like being reborn. It started giving me the belief of what could happen. The 2nd part to this is to take what you have been taught and apply it in the real world. What I mean is to start marketing and talking to sellers. Walk through the initial fear that is in front of you. You know just stretch your risk muscle. Make offers and get the contract completed. I have made many mistakes in this business and I have learned from each and every one of them. I would like to say that I have not repeated them but sometimes I think it will come out different and learn the same lesson again.
I see the most growth from playing all out and going for it. Remember that $310,000.00 deal I talked to you about. The 1st buyer I had on the deal backed out 4 days before I was to fund the $646,000.00. I could have freaked out and just backed out myself but I freaked in! That is I pulled it all together and raised the $646,000.00 in just 4 days and funded the deal. Now I owned my first million dollar home. That is growth. Everything I went through just gave me more strength and confidence. I sold the home 30 days later and made more money than I was going to make with the original buyer. I believe in risk and without risk there will be no growth. No change, no gain. To grow is to change from the sameness that you are and become something different.
What marketing do you use, and what do you think are the best and worst marketing for leads for you?
I use all types of marketing from car signs, cards, pens, letters, zip code mailings, postcards, ads in the newspaper, mailing to a foreclosure list, etc… I do not think the worst if something is not pulling, I just switch it up. This business is always changing and so is the marketing and what works. I will say, if you are not marketing at all then you have no business. Marketing is the key to this people to people business. The best marketing is being at the right place at the right time. Word of mouth has brought me some of my best deals. People just knowing what I do. I always pass out a card to anyone I meet, dinner, lunch, meetings, etc… I am a walking billboard of sorts.
This has been a great time of learning from someone who has not just read about what to do, but has done it. I listen to people who have done it, not those who have never done anything in our business and are so quick to spout off, what to do.
Hunter Paschall
3DaysLive.com
407-772-2274
bpomanager@cfl.rr.com
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