Fix and flip deal flow that held up when Colorado slowed

Knocking the doors everyone else only mails

His prospecting channel is door knocking pre-foreclosures, death certificates, and divorces. Those owners are already buried in everyone's mail and calls, so a person at the door stands out. He leaves a laminated one pager on curing foreclosure, bigger than anything in the mailbox. Sellers he knocked have called back a year and a half later, ready to sign.

People actually will say often like, hey, I've been praying for somebody like you, or I've been waiting for somebody to come talk to me.

Holding the line at three channels

He runs two paid channels plus one prospecting channel, and evaluates them quarterly. The cap came from watching operators drown in eight or nine channels at once. Every channel needs an owner on the team, or money leaks through the cracks.

Ren Bartlett told me, hey man, don't get more than three channels.

Underwriting like prices keep falling

He buys around $300,000 to $325,000 on houses worth $500,000 to $550,000 after repair. That is roughly the 70 percent mark, or 80 percent minus repairs minus a wholesale fee. Comps come from the last 90 days only, then he takes another 5 to 8 percent off. Rehab budgets go up, not down: accent walls, staging, professional photos, 3D walkthroughs, and floor plans that syndicate to Zillow.

Selling wholesale deals through hard money lenders

For dispositions he calls his hard money lender contacts and asks who needs a project in the hopper. On a recent deal, one phone call and one text produced the buyer. He shows a property to two or three vetted buyers at a time, no mass open house. Contracts get locked with a $5,000 to $10,000 non refundable earnest deposit.

September 2021: a vacant Denver house, an out of state owner who answered on the 17th call attempt, and squatters inside. The deal dragged for months, then the seller went silent. In January 2022 Alex flew to Knoxville and drove seven hours to knock the man's door. Nobody answered for three days, so he left a note and a 30 pack of Budweiser. The seller had died the day he was knocking. The estate sold him the house for $97,500. After more than $90,000 in rehab it appraised around $550,000 and cash flows over $1,000 a month. "So it was one of the deals of a lifetime. I spent about $1,200 flying there doing my whole thing."