In this episode of The Same Day Podcast, Yoni Schmidt sits down with Donny Coram, Head Coach at Foreclosure Deals Coach, to discuss maximizing real estate returns in the foreclosure market. They explore Donny’s strategic approach to flipping foreclosures, the importance of efficient project management, and future expansion plans into high-potential markets like Phoenix and Las Vegas.
Maximizing Real Estate Returns in the Foreclosure Market With Donny Coram
Donny Coram, Head Coach at Foreclosure Deals Coach, is a seasoned real estate investment expert specializing in foreclosures. With over 300 successful flips under his belt, each boasting a consistent profit benchmark of at least $25,000, Donny lends his expertise across major media outlets. Through systematic approaches and education, he helps investors turn foreclosures into profitable ventures, embodying a coaching methodology that doesn’t just instruct but actively transforms lives through real estate.
Here’s a glimpse of what you’ll learn:
- [3:13] Donny Coram shares why he decided to focus solely on foreclosure deals
- [5:05] How Donny managed over 300 successful real estate flips and maintained his personal well-being
- [6:16] Common pitfalls for new investors in foreclosure deals and how to avoid them
- [7:34] The essential metrics to evaluate the profitability of foreclosure deals
- [9:02] Scaling real estate flipping to multiple deals per year
- [13:00] Donny‘s advice for selecting foreclosure properties to ensure solid profit margins
- [22:23] A success story that exemplifies the effectiveness of a well-executed flip
- [27:27] The mindset needed for succeeding in the high-stakes world of foreclosure investing
In this episode…
Flipping foreclosed properties can be lucrative, but it also comes with its fair share of challenges. What does it take to turn distressed properties into profitable investments in today’s real estate market?
According to Donny Coram, a seasoned real estate investor with over 300 successful flips, the key lies in overcoming fear and adopting a strategic approach. He highlights the importance of quick decision-making and thorough market research to mitigate risk. Donny’s simplified analysis method focuses on the acquisition price, rehab costs, and after-repaired value, ensuring a minimum profit of $25,000 per flip. His coaching program emphasizes hands-on support, providing clients with actionable steps and continuous deal opportunities until they achieve success.
Resources mentioned in this episode:
- Yoni Schmidt on LinkedIn
- Mat Zalk on LinkedIn
- Walter Bowser on LinkedIn
- Keyrenter Property Management
- Keyrenter Property Management in Tulsa | Oklahoma City | Arkansas
- Keyrenter Property Management email address: [email protected]
- Donny Coram on LinkedIn
- Foreclosure Deals Coach
Special Mentions:
Related Episodes:
- “Beyond Traditional Buying: Exploring Creative Real Estate Financing Techniques” with Chris Prefontaine on The Same Day Podcast
- “How To Compete in the Banking Industry: Relationship-Based and Customer-Centric Service” with Jared Goldfarb on The Same Day Podcast
- “1031 Exchanges: Fast-Tracking Your Real Estate Investment Portfolio” with Marissa LoCascio on The Same Day Podcast
Quotable Moments:
- “You’re dealing with the ultimate motivated seller, a bank or a government entity that just does not want that property on the books anymore.”
- “My immediate attention on social media took off because it just hadn’t been done in my local market.”
- “The reality was wealth transferred at a very high degree during the [2008] crisis to people who understood how that market works.”
- “I love locating deals; that’s what gets me out of bed in the morning. I’m gonna go find me a deal.”
- “Don’t buy a house; buy a deal.”
Action Steps:
- Get comfortable with risk: Embrace the inherent risks associated with foreclosure investments to overcome the fear barrier. Understanding that real estate investing carries risk is key to entering the foreclosure market with confidence and setting realistic expectations.
- Educate yourself: Dive deep into the process of foreclosure investing, including acquisition, rehab costs, and after-repaired value. Getting familiar with these critical financial numbers can help ensure profitability and mitigate risk.
- Create relationships: Foster strong connections with banks, lending institutions, and construction crews. These relationships are crucial for sourcing deals, which can lead to more opportunities and more favorable outcomes.
- Utilize a coach: Employ a real estate coach to provide active, hands-on guidance through your first deal. Having a seasoned expert’s support can be the difference between merely knowing about flipping and actively executing successful deals.
- Systemize operations: Understand the value of systematic approaches to manage multiple projects efficiently. Systemizing reduces inefficiencies and stress, allowing for more flips and profit.
Sponsor for this episode…
Keyrenter Property Management:
This episode is brought to you by Keyrenter Property Management.
Keyrenter Property Management is a full-service property management company that helps clients buy, renovate, and operate real estate assets.
The team helps clients build wealth while taking the headache out of property management.
That’s why, no matter what rental you have — single-family homes, condos, townhomes, or apartments — they can give you the management solutions you need.
To learn more about their services, go to https://keyrenterpmc.com/ or send them an email at [email protected].
Episode Transcript
Intro 0:05
Welcome to The Same Day Podcast where we discuss driving incremental business growth and other topics related to real estate, property management and entrepreneurship. Now to the show at hand.
Yoni Schmidt 0:20
Hello Yoni Schmidt here hosting today’s episode of The Same Day Podcast where I connect with top business leaders and real estate entrepreneurs. Our past guests include Chris Prefontaine, Jared Goldfarb, Marissa LoCascio and many many more. Today’s episode is brought to you by Keyrenter Property Management. At Keyrenter Property Management, we are a full service property management company helping our clients buy, renovate and operate real estate assets. We help our clients build wealth while taking the headache out of property management. That is why no matter what rental you have single family homes, condos, townhouses or apartments, we have the management solutions for you go to keyrenterpmc.com or email us at info at keyrenterpmc.com. Welcome to today’s episode where we have the pleasure of speaking with Donny Coram, Head Coach at Foreclosure Deals Coach. Donny is a seasoned expert in the real estate investment field, particularly known for his strategic approach to finding and analyzing, funding fixing and flipping foreclosure deals. With a robust track record of over 300 successful flips, and a consistent profit benchmark of at least $25,000 per deal. Donnie has made significant marks on the industry. Having been featured on major media outlets like CNN, Fox News, CBS ABC, Donny brings not just expertise, but a proven methodology to the table. His focus on empowering investors through education and practical insights, enabling them to turn foreclosure investments into profitable ventures. Today, he’s here to share his insights and strategies, helping our listeners understand how they can also profit from foreclosures, and make informed investment decisions. Join us as we delve into the intricacies of foreclosure investments with a coach who does more than just teach. He also transforms, transforms lives through real estate. Welcome to the show, Donny, and thank you for being here. How are you?
Donny Coram 2:17
I’m doing well. You already. That was an incredible intro, man. Thank you. That was a I’m impressed by myself right now. So thank you.
Yoni Schmidt 2:24
Yeah, thank you. It took me some time to write it. But I had to do a lot of research and digging on your LinkedIn profile. And other online, you know, avenues. So I’m truly impressed by your career and you know, what you’ve done and everything that you’ve accomplished. And I’ve always been shy, I’ve always shied away from foreclosures, right? Because it’s that kind of like scary unknown for me as a real estate investor and real estate agent. And people always bring me deals and they say, here’s a foreclosure deal. And I say, I don’t know what to do. Right. So I’m so happy to have you here and to learn from your experience and your expertise. Tell us a little bit about, you know, what got you into focusing exclusively on foreclosure deals.
Donny Coram 3:13
Yeah, so many years ago, I was also a real estate agent. I was an agent for almost 20 years. And when I started my agent career, I got my license in 2007. And we all kind of know what happened in 2008. Things got a little bit sideways, if you will. But I started focusing on HUD foreclosures, specifically our FHA loans gone bad. And you know, the secret of that Yadi was they were paying 5% Commission, I remember, you know, we’re used to making 3% Commission as agents, these 5% Commission, and they’re the most under marketed unappreciated assets on the market, because he needs time, we’re getting paid nothing. So here I am as a new agent going, but why wouldn’t I just work for double the pay to move these properties as opposed to making the same as everything so I I called myself a foreclosure expert started really focusing on the HUD foreclosure market shot one of the first Youtube videos before YouTube was really a thing back then started doing tours of these properties. And my immediate attention, my social media account, took off immediately because it just hadn’t really been done in my local market, or really, otherwise at all. I’d kind of learned how to do these flips with investors as an agent then started investing myself. Like you said, I’ve done over 300 deals myself, and that led into doing too many I feel like in my last few years really going at it. My best year I had 47 flips, which was credible financially, but personally, it was an absolute disaster. But along the way, I learned a lot of stuff about systematizing it and that turned into the coaching program, or one of my flips made the national news, the springs house ashtag springs fell out if you want to check that out. But I made the national news with that one and then people started reaching out and asked me to help them out with coaching on how to get started in foreclosure investing. And now here we are.
Yoni Schmidt 4:58
Wow. Wow, that’s so interesting. You said 47 flips in one year, man.
Donny Coram 5:05
Yeah, yeah, almost got divorced. So let’s just do my wife was my operations manager. And God bless her. She’s, she’s the most wonderful thing, but she’s not good at delegating. She’s, uh, she’s Romanian. So yeah, that Eastern European edge to her, if you will. And, you know, yeah, it take it all on herself, she wouldn’t delegate into the work. And she eventually went crazy. You know what, I don’t blame her at all. Because this is a lot of work if you’re doing it. And if you’re doing seven or eight of them at a time, it got really difficult for her. So that’s why it had such a negative impact on us personally. But now we got a system and a team that other people get to use, they get to use my team to do the flips, so it’s not so stressful on them. And it makes it much easier to make the process go more fluid and more profitably.
Yoni Schmidt 5:48
Yeah, those are important lessons. I guess to learn along, though, along the way, there’s so many moving parts just flips that sometimes you’re just not thinking about. When you’re renovating a property in general, even if it’s a buy and hold that you have to get down to the studs and then put back on the on the rental market. It’s, you know, there are always surprises along the way. So I can only imagine that times 47. And each one of them must have had, you know, their own set of unique surprises.
Donny Coram 6:16
So that was the thing. Like you’d never knew what you were gonna get. And we had literally had it all from squatters, to, you know, unexpected water damage in the walls, everything you see on the flipping shows. But imagine, yeah, 47 times in a year, just say, Yeah, the thing and God bless her for you. And taking that on him. I guess I’m surprised we managed to stay married, because she was just so stressed out, I was really good at finding the deal, analyzing the deal and funding the deal. But when my part was over, I went on to the right, and she had to stay in those properties and get them to fruition. She’s an interior designer by trade. So the work was wonderful. That was always looked great. But the stress levels were just overwhelming for her and us ultimately, so that’s why we we kind of transitioned from doing that many.
Yoni Schmidt 7:01
Right? Yeah. And I bet that, you know, she she wanted to do it all herself, because no one will do it as good as she would. So yes, that’s, that’s probably something that I can definitely relate to. Which is why, you know, sometimes things just like slow me down. But tell me, I guess like what, what common, you’ve done this so many times, what common pitfalls, you know, new investors face in the foreclosure deals that they you know, initially start coming across, and how do you push them through avoiding those pitfalls?
Donny Coram 7:34
Great question, Yoni, you know, a lot of people you open with the fear, like the biggest thing that stops people from getting involved in the foreclosure investing business is fear, like you don’t know what you’re getting into necessarily, I don’t want to seem like we just go out and randomly buy houses, you know, we do an inspection, we have a construction estimator go out, look at the property, we’re finding out what the extent of the work is going to be before we own the house. Okay. But when you’re first thinking about foreclosure investing, there’s a lot of what could have gotten wrong? Why is the selling so cheap, etc? Well, the reason they’re selling cheap is because you’re dealing with the ultimate motivated seller, a bank or a government entity that just does not want that property on the books anymore. Right? Right. They’re cheap, because not because there’s something wrong with it. But because the situation is bad for the current owner who doesn’t want the property anymore, right? You weren’t adopting all the problems that that house has. And if you’re doing proper research, it doesn’t have to be frightening. It’s just that people don’t know how to do the research in time to make an executive decision on buying an under market property. Because other professional investors, they’re acclimated to that, right. So by the time you’ve done your homework and your analysis, my team has already identified all the problems built a scope of work and etc. So by getting into my system, you’re getting a team that is acclimated to give you the data, you need to make a decision very quickly, so you don’t lose out to other more experienced investors.
Yoni Schmidt 8:57
Yeah, and this system is any investor can use it anywhere in the nation.
Donny Coram 9:02
Yes, absolutely. You know, my requirements right now is we are specifically invested in the Colorado market at the time of this recording, but we are expanding into Arizona last but to be honest with you, any market is going to be warm in the winter, because I love it here in the summer. Just done with Colorado winter, I’m not gonna lie to you that that’s my my pet peeve. So I’m hoping to go set up another system and other markets, but they as long as they’re buying a house in my market, they can be anywhere in the country. I have clients in New Jersey and LA in Las Vegas all across the country. But the requirement is that the first deal that we do has to be right here in my home market because I have the most control here over the construction or the analysis over all the parts of the process so I can really ensure my clients success because we are focused on this local market.
Yoni Schmidt 9:48
Yeah. And so I guess tell us a little bit more about you know, sourcing the maybe foreclosure deals right you have probably a very good relationship with the banks. That is In the lenders that own these assets, ultimately, you’re right, none of them, you know, from from going back to my commercial banking classes when I was learning finance at the University of Oklahoma, I remember my professors distinctly telling us, you know, no bank wants real estate on their books, right? That’s, that’s, that clogs up their liquidity, and it prevents them from doing exactly what they want to do, which is making loans and earning interest. Right. So they, they want to get that thing off the books as quickly as they can, Absalom, you know, but at the same time, the bankers right, are sitting at the auction with those investors. And, you know, from, from my understanding, at least here in the Tulsa County auction, things start at two thirds of the cost, or the appraised value, sorry, two thirds of the appraised value, and then the bank may, you know, bid it up to bring it to where it needs to be, you know, how, how do you? How do you work through those auctions? How do you source these deals? You know, can you source them before they even go to the auction, right? Or after they go to the auction? You know, a banker would give you Donny a call, and they’ll say, hey, actually, we can sell this for x amount of dollars. Would you want it? Right?
Donny Coram 11:17
Yeah, I mean, the answer is both. I mean, the reality is, we’re getting a lot of our properties before mark, and I call myself the foreclosure deals coach, but a lot of people are heading to foreclosure, right. So they’re distressed, and we’re trying to get them prior to foreclosure. And that’s where the best deals really come from. You know, the recent years, there haven’t been many foreclosures. For one thing, there’s a huge auditorium on him in 2020, in the COVID crisis, right, and that hasn’t quite caught up. So not a lot of properties are making it to the foreclosure status, where the bank owns them, at least not as many have done in other years. The idea is that a deal is a deal. We prefer working with banks, because to your point, I have a lot of great relationships with lenders who want to offload property. But we’re working a lot with private sellers. Right now, we’re just in trouble. And we find the deal. But the point, the idea is that people who have like a full time day job, right, don’t have time to go out there and scout for these opportunities. Like if you got to do for a living, right, yeah, lifestyle, it’s hard to be pursuing opportunities in the foreclosure market. So part of my coaching program is that I’m doing the scouting for you, I locate the opportunities, I identify them, analyze them set up funding, so all you have to do is write the check, and then writing the check for buying the property. I consult with you on how to get the property from your ownership back to the open market, but you’re really looking for somebody who can do that heavy lifting of locating deals. And that’s the big program is about.
Yoni Schmidt 12:42
Right. Yeah. So So and then the next step, I guess, like would be, once you found the opportunity, you found the investor, you match them up, you go through the acquisition process, then you’re in the flip, basically, you start to flip process, that’s where you, you know, bring your wife in, what’s her name, sorry.
Donny Coram 13:00
My wife, but she’s no longer the operations manager. She’s sticking to interior design. But I brought the operations team that’s really focused on this, we got, Laura was doing the job like four people. And it takes literally what she was doing on her own right. So now I’ve got an operations manager, a couple of project managers, a finance manager, all these pieces are operating behind the scenes on app right now. So instead of Laura having to manage all those processes, it all now happens at my team level. And my clients get to utilize that team to get their flip completed. So it’s not near as involved, as it was when it was just Laura and I, for her. Just the interior design, purchase. She loves that part of it. And she helps to pick up the colors and make them pretty, and that’s her favorite part. So she still adds that value to it. But it’s growing so big that this is a it’s like a franchise like you’re basically buying a franchise that can flip houses on your behalf. So you can focus on other things, but still make money and profit from flipping foreclosure deals.
Yoni Schmidt 13:57
Yeah. And so what walk us through, you know, how you analyze these potential foreclosure deals and, you know, ensure that they meet that like $25,000 profit benchmark. And what’s the timeframe? Right, is it? Are we are we talking 3, 6, 8, 9 months, something like that, or is it longer?
Donny Coram 14:15
Great question. Let’s start with walk you through the process that we’ll talk timeline a little bit, um, the process is on the analyzer. You know, there’s a lot of stuff that goes into analysis, but I got it down to what I call it my kiss, or keep it simple, stupid. Three numbers. I love that. Yeah. The three numbers that matter on any flip are your acquisition price, what you’re paying for it, right? Your rehab costs, what it’s going to cost to remodel it, and your after repaired value or what you intend to sell it for, right? Quick numbers. Let’s assume we’re buying a property for $300,000. That’s our acquisition price. Right. Let’s also assume that we’ve done our homework, we’ve got a construction estimate, and we know that it’s going to cost us 50 grand to fix this property up. Right. So now we’re into it for 350 $3,000, we then take the final price the rehab or after repaired value, and we’re going to assume for this scenario that we’re going to sell it for 400 grand, okay? Take the 400,000, we subtract the 300,000, we paid for it and the 50 Grand we put into it to leave us with a gross profit of $50,000. Keep the gross profit, right, we now have to make closing costs and commissions, and hard money costs and all those things that add up to doing a deal. So you take that 50 grand and cut it in half, and the grand now becomes 25 grand. So provided we have a gross margin of 50,000, it should result in a net margin of 25,000 almost every single time without fail, because we built in all the hard costs. And we put our numbers of variables in there. Now my analysis is far more thorough than that. But so people don’t panic because they get an analysis paralysis, right? Right. What a really overanalyze the deal. So we do our quick analysis, if the quick analysis checks out, then we could do a more detailed analysis and verify that re verify the other pieces. But the quick analysis checks out, it’s generally worth exploring further. And that’s how we do our analysis on the field.
Yoni Schmidt 16:09
Yeah, beautiful. And timeline wise, something like that could take up to six months?
Donny Coram 16:15
No, gosh, no, we are really looking to we try to be in construction. So after you own it, the goal is to be in construction for four to six weeks, at most. Right, wow. And then we have to figure out how long it’s going to take to sell well, in 21 and 22, we were measuring days on market and hours on market, right? That’s that today, we’re pricing the property at about a 30 day rolling average. So we’re looking at what price would get this home sold in 30 days or less, we really don’t want it to sell in two days, if it sells in two days, then that means we left some money on the table, we could have gotten more, right, we also don’t want it to take forever to sell interest rates are higher, things are already taking longer than they probably should. Right. So what I’m gonna price it right within the bracket based on our analysis, that’s gonna get the property sold in about 30 days. And then as you know, it takes about 30 to 30 days to close the loan, get through underwriting and get to the closing table, right. So total ownership if everything goes perfect is 90 days, but we know everything’s not gonna go perfect. So we generally only we budget for three to four months of total holding time between acquisition and sale, we’re planning on a four month total window.
Yoni Schmidt 17:26
Wow. So you can do three of these a year, really, and you know, make an extra, you know, almost $75,000, probably, and then continue to just leverage or redeploy those that those funds into additional investment opportunities. You mentioned, you know, you mentioned not everything going perfect. And let’s touch about that for just a second. Right? What What are like the most critical aspects to consider when you’re flipping a foreclosure, right? I mean, there’s so many moving parts in construction, right? So what do you look at Donnie, when you walk into an opportunity?
Donny Coram 18:05
You know, we’re really looking for that. So based on the construction crews we put into place like we’ve got these guys so efficient. I once watched a video detour a little bit, where they flipped that apartment in 60 minutes, rather than the entire mouth, that 50 people on site. They’re doing each role, right. And then somebody came in to put the flooring in, and somebody put the cloud countertop, they got it done in an hour, it broke like some Guinness Book of World Records, then it was really neat. Yeah, realistic, that’s not realistic, get a house flipped and in 60 minutes. However, with efficiency systems, we can consistently hit that that 30, that four to six week mark, as long as we have all the inefficiencies taken out, it doesn’t need to take two days between the time that the last cabinet goes in to the flooring getting in if we timed as well, we can get that down to a few hours. And that’s what my product management team is trying to do is condense those gaps. Well, there’s no activity in the hall. That being said, what goes wrong? Supply chain was a huge problem for us in 2020. We’re cabinets were out of stock with Windows, we’re taking six weeks, just to get in. Right. So that was back a little bit. People get, you know, laborers don’t show up, they get sick, they got family issues, right. So the reality is is going to be something that goes wrong because there are so many moving parts. As you mentioned in a flip that something’s gonna go wrong. We’re just budgeting for that in the timeframe, we hope to get it done in four weeks. But if it takes five weeks, not that big of a deal, right? So I want to build that into it. So we’re planning on four months and that’s why you know, three months everything goes perfectly but four months is more realistic. And when it gets to six months as long as the deal was bought brought properly to begin with, because you make your money when you bought it properly. You don’t have anything to worry about as far as the timeline goes. To your point though I do want my clients be able to do three or four of these per year with consistency because If phones, we reduced those inefficiencies, then they had the money back sooner to reinvest it into their next panel, which is really big.
Yoni Schmidt 20:07
Right, right. Right. I love that. I mean, you do make your money when you buy. That’s something that people often forget. Right? So, yeah, that’s very interesting. Can you share a success story of a foreclosure flip that maybe exempt exemplifies the effectiveness of your coaching program?
Donny Coram 20:27
Yeah, absolutely. I had a client we bought a property the family had, well, they were going to lose it to foreclosure because the mom had died. Not at the property, thankfully, but she had passed away and needed to they need to offload the home, they couldn’t afford the payments, and the taxes were starting to mount up and etc. So we bought the property prior to foreclosure got a smokin deal on this thing, we paid $238,000 for it. The the client in this case was also an agent. So she managed the project herself. If she had the time in the background to do it, which I don’t recommend, we generally prefer by professional project managers. But she had the bandwidth so that cut some of her costs, you know, the project management fees project. And so she spent about 65,000 on the remodel give her take, I will argue she could have gotten it done cheaper, had my product managers done it. But nonetheless, it took 65 grand to get it done. So we’re in it to 38 we add 65. To that we’re out at about 303,000. She sold it very quickly for 420 grand. But with the overages and costs and etc. She pocketed $72,000 Wow. Now, that’s not typical of my it’s the opportunity that if you’re doing enough of these, and you’re consistent at it, you can build to where yeah, you’re making 25 grand normally, but every now and then you hit a home run and make 5060 70,000 bucks, you know. So when it comes down to consistency, what I’m trying to teach is that you’re not you’re not gonna get rich, doing one foreclosure flip, no matter how good that flip is, you are. If you can build a system with myself and my team that allows you to do three or four of these every year consistently, you can take that income and buy more rental property, you could put it into passive income business, you could pay off your home mortgage sooner, so you can build wealth. But this is an investment vehicle that allows you to increase your income semi passively. So you can take that income and apply it to other wealth building strategies.
Yoni Schmidt 22:23
Yeah. Wonderful. That’s incredible. Almost $70,000 on a flip. Yeah. Great deal. Tell us a little bit about, you know, your biggest challenges with foreclosures, right? What do you see as a, you know, the biggest challenge in foreclosures? Maybe also for a newbie that comes in? Right? You said the fear the analysis paralysis? Maybe it’s the unknown, or the is it? Is it? Could it be the learning curve, right, that, you know, it would take someone to come that’s coming in fresh into the market?
Donny Coram 22:54
You really nailed it on that, you know, the reality of the reason I named this coaching, because there’s a lot of mentorship programs out there. People who are educating people on how to get into investing, like some of these groups charge 20, 30 grand to get into an investing seminar group that’s going to talk about real estate, right? Yeah, as groups is there educating, and you can get all the book knowledge you want. That doesn’t mean you’re going to take that knowledge and actually do a deal, right? That’s where my program is different. Because I’m a coach, a business coach, I’m going to keep pushing on you until you do that darn deal, right. And the coaching is unlimited, until you make a net profit of $25,000 as a result of the relationship, because I don’t want anybody signing up for my coaching, who pays for my time, and then goes out to the world and said, I paid Donny Coram, I didn’t do a deal. That’s not gonna happen. Right? So with me, you are stuck with me until you actually make a $25000 profit. Now, my hope is we’ll get it done on one deal. We’ll get it done in 90 days. And you’ll be so excited that you want to do your next one right away. Right? Wow, he’s really struggle as they think education is the answer. You can get as educated as you want about flying a plane. But I promise you, I’m not going to step foot in that aircraft unless you’ve done some practicing on finding the right place to foreclosure investing. And it’s not a good idea to learn this on your own. It’s very difficult to push past your mental barriers to do this. So a coach, in my case, not a mentor or a teacher, but a coach is going to take you find out what your limiting factors are, what are the mental blocks that are stopping you from doing this, and I’m gonna keep presenting deals and get you more and more comfortable with it until you pull the trigger and actually feel and I just think that’s what is need that need that push to really get the deal. You know?
Yoni Schmidt 24:41
Yeah, brilliant. I mean, getting past that mental barrier, right is is really an important piece of the puzzle because again, when I look at it, I you know, I’ve been an agent in Oklahoma for since 2016 Now, and 17 and you know, I’ve done some He deals but never foreclosure deal. And it is that mental barrier that you know that fear. So, yeah, we should stay in touch after this, of course, and, you know, talk about how we can how we can also work together? Or does I guess, you know, I mean, you met you met. And you may have also just answered this because you mentioned that, you know, you’re going to be on that. Basically, you want to call maybe clients or coaching, coaching students, right? Until they do that deal. But how does your coaching distinguish itself from, you know, the numerous other real estate gurus out there? And that could have been? The answer is that you’re just gonna push through until, until they get to that point where they’re making $25,000. And then they’re excited to do the next one.
Donny Coram 25:49
That’s right. You know, I think where I’m different is I’m actually finding the deals. I think a lot of the gurus out there are giving you the theory of deal. Yeah, if you happen to find this deal, then this is what to do, right? But then you got a trip fall and land on a deal, like, what are the what, what are the ads, right, then? Well, I’m locating deals every single day, my favorite part of this Jonnie is actually locating deals, right? I love Yeah, of all the things I do that negotiation process with the banks or the seller, the motivated seller, I love that my team loves that this is what gets me out of bed in the morning, I’m gonna go find me a deal, you know. So I think what makes me different from a lot of the gurus out there is their teaching theory, you know, if you happen to find a deal, we’ll do it. Whereas with me, you are going to find a deal because I’m going to send it to you. And then if you don’t mind, what I’m going to say to the one next week, and if you don’t buy that, whatever, send you the one next week, etc, etc, etc, until you buy a deal, right? And that’s the variable, no theory here, you’re gonna have actual deals that I’m putting together all the time. And you’re going to do one of them. Or I’m going to keep calling you until you do, right. Yeah, I think what really separates me from the Guru’s is I’m really results focused. If you’re not ready to do a deal. I’m not the right coach. And I tell people that right up front, if you’re in the evaluation, education phase, not your guy thought what I do, right. But if you want to pull the trigger, you just need a little hand holding little bit of courage from somebody standing by you. My key to success was I hired a coach very early on, and he pushed me to success. And if you’re committed to success in real estate investing, I want to be that coach for as many people as I can help to actually pull the trigger. But I find the deals throughout the world that.
Yoni Schmidt 27:27
Yeah, love that. Tell us what advice would you give, you know, our listeners about the mindset that’s needed to succeed in that foreclosure business?
Donny Coram 27:37
That’s a good one. You know, it’s funny, when you’re talking to stock traders, there’s something about when you’re trading stocks that you’re comfortable with losing money, right, if you’re an option trader, and you understand that it could go down in value. When you talk to foreclosure people or real estate investors, there’s this fear that well, what if it doesn’t work out? Well, if it doesn’t work out, you can lose money, this is an investment vehicle, now we take great care to make sure you’re not going to lose money on the investment. But if you’re not comfortable with a certain degree of risk, real estate, investing in general is probably not a good idea, you know, your money in treasury bills or something really safe, right? Testing is a high risk, high reward investment, we mitigate the risk by doing the homework is you make your money when you buy about right. But as long as you understand the numbers, that is very difficult to lose money in real estate, but if not impossible, right, and I want to clarify that out of the gate for anybody who’s jumping in. So if people are getting started need to get very comfortable, the fact that this is an investment vehicle that pays very well, as long as you’re comfortable with a moderate amount of risk, right? Not comfortable to moderate amount of risk, this is not the right tool for you. And I really talk to people on coaching calls all the time, who are all gung ho. But when I started getting into the fact that you’re going to have to make a $300,000 buying decision on a property you’re never going to see in person, you got to do it in three to four hours, because we don’t have very much, right? Wire funds for your downpayment, and your your earnest money, you got to get that done, it’s gonna have to happen really quick. So if you’re not comfortable with that, this may not be the right vehicle. But if you’re comfortable with some degree of risk, you can make a lot of money doing this. And we mitigate that risk by doing our homework before you own the property. So you make your money when you’re buying you will be okay. But you do have to do with a certain degree of risk to make this.
Yoni Schmidt 29:25
Yeah, yeah. And probably no better person to do then with someone who’s done it 300 times or more. Right. I mean, the experience just Yeah, I mean, the experience just speaks for itself. And you know, you’d much rather do it with someone who’s done it maybe a couple of times. Then someone who’s, you know, dipping their toes in the water for the very first time. Wonderful. Tell us I guess, like lastly, what what future plans you have for foreclosure deals coach you know, what are your plans? I know, you know, Sunny, Sunny. The Sun Belt is Where are you got your, you know, eyes focused on? Those are going to be the lucky ones who get to, you know, enjoy maybe another franchise or another extension of your business, another market tell us? How are you going to evolve the coaching services that you offer? And where are you headed next?
Donny Coram 30:21
Yeah, thanks for asking, you know, I’ll just say I just want someplace warm. But also, we are doing a lot of research on where the foreclosures are, are taking the most effect on the market right now, a lot of the analytics on what’s best for my clients, and every market has opportunities in it, but some markets gonna have more opportunities than others. If we combine the market opportunities with my desire to be someplace warm, I think we’ll find a nice place to land here some sometime soon. But we are definitely looking at Phoenix, the Phoenix market got a lot of potential right now. And it’s warm year round. So that excites me. And it’s a short hour and a half flight from where I am. So it’s easy to get there. Las Vegas, you know, has a lot of potential. They experienced really big booms and swing, they go back and forth. And they’re, they’re heading towards a potential crisis right now. So that’s also interesting. But honestly, the city we ended up in next is not going to be a well known one. Like we’re doing a lot of work in Pueblo, Colorado, just to the south of me right now. Yeah. It’s 30 miles south, it’s a small town, and it’s set for gentrification, right. So you have a bunch of foreclosures, and the fact that call the springs has gotten so expensive that people are feeding now South in the Pueblo, that’s what we’re looking for is both the combination of a lot of foreclosures and a lot of push for affordable homes nearby to another city that’s going to feed into that one. Right. So you know, called a springs used to be the feeder town for Denver, Colorado. And there’s that was the case people commuted, you know, from Colorado Springs to Denver, because a good job for in Denver will now call the springs has gotten so expensive, that people are going to Pueblo and commuting up here, you know, inventive electric cars, we’re not worried about fuel as much now, right. And now that more people can work from home, it’s now no longer as location dependent it used to be, so we’re allowing them will be warm, for sure. And they will have a they will have a climate that is poised for growth. And we’re doing the right analysis now to make sure that wherever we go, we focus our attention on next, get our construction crews dialed in our product management team is dialed in. Most of my team is virtual now. Anyway, my operations manager is based in Chihuahua, Mexico, by funding Atlanta, Georgia, you know, so we can work from anywhere already. But construction has to be local. We want to make sure you got a good team when we arrive on site that can do the work for these properties before we get there.
Yoni Schmidt 32:40
Right. Yeah, that’s such an important piece of the of the whole puzzle is your contracting your contracting crews. That’s That’s great. Pueblo, Colorado, I’ve heard of Pueblo actually, someone had mentioned to me that it’s an interesting market. So for those of you who haven’t you heard it here, first at on the same day podcast by Donnie with Donnie Coram. You know, that’s very interesting. You know, one other question before I open it up for you to you know, leave us with your thoughts. You mentioned that you’re doing a lot of research in terms of, you know, opportunities, market environments, what’s the next good market for your business and for your coaching program? Have you looked into Austin, Texas, for example, which is a frothy market that we all know, has, I believe now have the highest rate of foreclosures in the United States? As of what is it now? May 17 of 24. Right? Foreclosures are popping up everywhere. In Austin, Texas. Have you heard anything about that?
Donny Coram 33:48
I have, and I’m a big fan of awesome music guy myself. Austin’s a great music town. So that’d be great. That’s warm year round. Yes. Austin has made Austin has made our radar a couple of times, and we’re definitely looking down there. I think the big variable, it really comes down to the construction setup. Like I could set up shop anywhere, but it’s where we’re going to focus building the relationships that we need to dial it in in that market as a for instance, here in Colorado Springs, we own a flooring store. So my wife’s kind of full time gig now running the flooring store. So obviously got a pager hookup on the flooring for my clients, they get a benefit from that discount as well. So we’ve got to set those relationships up on focus on but what’s driving it exactly what you said we’re looking at where that heavy amounts of foreclosures are going to be. And you know, to answer your question about vision, I want foreclosure deals approach to be natural. I want to be working in every market everywhere. Eventually I wanted to be as common as a Subway franchise, right? But it really is just a matter of time. Before we can get those systems put together, find the right clients who are already in that market looking to buy in that market. Though my clients are all over the country and buying in Colorado. It’s nice to have a certain base of people in that local market so I can focus some energy on building those relationships with my clients onto writers that we need to make it all work, you know, so at this point Jonnie, just once I get the momentum, and really get Colorado dialed in, I’m going everywhere. But I’m gonna head south first because I, I do not.
Yoni Schmidt 35:11
I’ve just done a lot of that. Amazing. Anything else that you would leave our listeners with today.
Donny Coram 35:19
You know, as my slogan goes, don’t buy a house buy a deal. But you know, to dive that deeper, it’s, it’s so important to act right now, the market is shifting before our eyes, people are going to be on the sidelines wishing they had gotten involved in this. So if you’re somebody who really wants to get involved in foreclosure investing millions of dollars, if not billions, of dollars of wealth was created in the 2007 2008 crisis. People only saw that as a market or a bunch of people lost money. But the reality was wealth transferred at a very high degree during that time to people who understood how that market works. So get out in front of this, don’t wait for it to happen and wish you had gotten involved. But rather, bring me on board. If you’re ready to do this. Let’s talk go to foreclosuredealscoach.com. Let’s talk about whether this is the right fit for you. If you’re in the right financial position, let’s do a couple of deals right here in the Colorado market together and then see where we expand from there into your home market or wherever else that you really want to invest. I can find deals anywhere, but don’t buy a house, buy a deal.
Yoni Schmidt 36:18
Love that, we’re going to put that link in the bio and link below in the bio and comment below. So if you are looking to connect with Donny, go to his website and reach out to him through there. Donny, thank you so much for being here today, educating us about the foreclosure world and I hope that one day that you and I can do a deal together.
Donny Coram 36:42
I would love that you’re in touch man. I’m certain we could put one together at some point.
Yoni Schmidt 36:45
Love it. Thank you. See ya.
Outro 36:52
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