House Flipping: Josh Miller On the 5 Things You Need To Know To Create A Successful Career Buying, Rehabbing, and Selling Properties

You Make Your Money When You Buy, Not When You Sell: Contrary to what you see on television, it is extremely difficult to make money flipping houses. At the start, you are bound to make mistakes with fixer-uppers. My recommendation is you buy a house that is right to begin with at a great, low price. Look at purchase prices, and buy houses at a discount. The best way to do this is by marketing to owners before they are listed on the MLS.

Shows like Flip or Flop and Fixer Upper with Chip and Joanna Gaines have really glamorized the creativity and enjoyment that comes with buying a rundown home, fixing it, and then selling it for a profit. Some amateurs have ventured into this industry and have made a lucrative career out of it. But others, particularly when a market is stagnant, have lost their shirts. As a part of my series about the ‘5 Things You Need To Know To Create A Successful Career Buying, Rehabbing, and Selling Properties’, I had the pleasure of interviewing Josh Miller.

Josh Miller went into real estate investing in 2017 because he wanted a career that earned him a passive income and gave him the freedom to spend time with his family. By May of 2019, he had 120 properties in his portfolio, had flipped hundreds or more, and was earning three times what he made at his former corporate job. In 2019, he also founded GoForClose, leveraging his real estate experience and marketing knowledge to help fellow investors achieve the same success.

Thank you so much for doing this with us! Can you tell us the “backstory” about what brought you to the Real Estate industry?

After 10 years at a corporate job with a six-figure salary, I left to pursue full-time real estate investing. It was a hard decision, because I was leaving a job with financial security for something uncertain that I knew little about. At the same time, it was an easy choice because after 10 years, I had little money saved up, and I wanted a career that gave me a passive income and the freedom to spend time with my family.

Another motivator was this: my corporate boss was 75 years old and always eager to retire. I was his finance advisor, and I often helped him plan out his retirement. When he finally did retire, six months later he passed away. This opened my eyes, and I realized I did not want to work another 40 years, 9 to 5, and let life pass me by.

I decided to work in real estate because it seemed like the best way to make a passive income. I made a ton of mistakes in the beginning and invested a lot of money. It was a year later that I realized marketing is the key to real estate investing success. I changed my methods and, in 2018, bought and sold hundreds of properties, and held onto 120 of them as rentals. 15 months later, I was making three times what I made at my corporate job and all of it passive.

Can you share with our readers the most interesting or amusing story that occurred to you in your career so far? Can you share the lesson or take away you took out of that story?

My First Deal: The first time I made a deal, I was scared to death — scared of risks, scared of making mistakes. I was marketing online, and a couple reached out to me from Waukesha, Wisconsin. Mind you, I was in California, and they wanted me to buy their house. I got nervous because I did not have the first clue as to how to assess a property or recognize a good deal.

I asked the couple what they wanted for the house. I, then, called a realtor to verify their asking price was fair. The realtor told me that if I bought the house for $90K, he could sell it for $120K. So I called the sellers and asked, and they said they would sell for $90K. I suddenly backtracked and said, “Let me think about it,” and then decided no, I was not going to buy it.

The couple said they would sell for $80K, and I said no. Then they said they would let it go for $60K, and I still said no. They finally confessed to me that they were going to lose the property to the state because of unpaid taxes. I called the city and discovered they owed a $40K lien in back taxes, all due by the end of the month. I followed up with the couple and told them their house was worth $120K, and they could file for an extension for more time to sell. They said they did not want to wait and asked me again to buy their house.

Finally, I made an offer of $50K. I actually wanted to think about it some more, but the sellers insisted there was no time. We closed the deal at $50K. Later, I called a realtor, who laughed when I said I bought the house for $50K, and he offered me $100K for it. I accepted.

The lesson here is to trust the numbers. Do your homework, and if the numbers are clear, and obviously in your favor, do not hesitate to purchase.

Do you have a favorite “life lesson quote”? Can you share a story or example of how that was relevant to you in your life?

I don’t really have a favorite quote, but there is a book I appreciate with a profound title: Who Not How by Dan Sullivan. In my entire career as a real estate investor, I have only spoken with two home sellers. I’ll be honest, I am not very good at the sales talk. I am not a born salesman. This sounds bad, but the fact of the matter is, I was born with a different set of skills. So, after my first deal, I hired someone to handle all my sales calls, while I focused on marketing and closing deals.

Finding a “Who” with the skills to accomplish a certain task, rather than learning “How” to do the task yourself, will help you grow your business. In my case, after I hired someone else to talk to sellers, I was able to buy and sell hundreds of properties my first year as a real estate investor. I had my “Who”, who was responsible for one important aspect of my business, so I could focus on the big picture and the numbers. If I had tried to do everything myself, I never would have had the time to grow my business.

Are you working on any exciting new projects now? How do you think that will help people?

Absolutely! The keys to my success were marketing and the ability to buy houses at an incredible discount. It did not matter how much I screwed up on a flip, or how many mistakes I made; I always sold for a profit.

Marketing is essential to get your name out there in front of sellers and to find qualified leads. Marketing campaigns involve three parts: (1) an expert team, (2) good marketing, and (3) great data. The problem was, no one in all of the real estate investing space offered all three. This is why I founded GoForClose: to make all three available to everyone in real estate investing. We have worked very hard the last two years to create a company that empowers real estate investors to focus on sales and closing deals by doing the marketing for them and finding them qualified leads.

What do you think makes your company stand out? Can you share a story?

Ours is the only company in the entire real estate investing space that does it all! We believe in multichannel marketing, which includes Facebook and Google Ads, cold calling, text messaging, ringless voicemail, email, and direct mail channels. We do all your marketing for you, so you can focus on growing your real estate investing business.

It is difficult to share just one story, because every case, every client has been a success story. One client, though, that comes to mind is one of our more experienced investors, located in a Southeast state, who was closing two to three deals a month. He wanted to scale up, get more leads, more contracts, but the cost of marketing was expensive. He did not want to lose money nor did he want to lose time dedicated to closing deals.

In March 2020, he hired GoForClose to handle his marketing. With our help, in the first month of service, he closed three deals. Fast forward to today, and this client presently closes six or more deals a month. With the extra income, he increased his sales team and hired a Lead Manager. At our suggestion, he also expanded into a second market and is doing very well.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

I had done nationwide buying and selling for a whole year, and the next step I wanted to achieve was to build a rental portfolio. In 2018, my goal was to get 100 properties under my belt, but to do this I needed a partner, someone I could trust to be my “boots on the ground.” I asked my brother if he wanted to do the job. I promised him that if he helped me, I would get him 100 properties too, and he would never have to work again. Lucky for me, he said yes.

I had to research available markets that afforded great rental opportunities. I chose Omaha, Nebraska. Now imagine, if you will, my brother, a California boy, moving to Nebraska, in the wintertime, when it was -8°. He did it though. He was there to talk with sellers in-person, put eyes on properties, and get them under contract, while I, on my end, handled the money and marketing. We quickly made the endeavor a success.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

1. Innovating: Innovating and adaptability are key in any line of work. I was buying and selling houses in 30 states, and then I changed gears to focus on a rental portfolio in one city. Markets change, circumstances change. I am constantly looking at what is and is not working in real estate investing. I make adjustments, accordingly, and achieve success.
2. Who Not How: Instead of doing everything myself, I realized my time is valuable, and it is better to outsource responsibilities to good people who are more qualified to do the work, and refocus my attention on growing my business and closing deals. My best example was hiring an acquisitions manager, so I did not have to speak with homeowners.
3. Understand Your Numbers: Real estate investing is a numbers game, and you cannot afford to get emotional if things go sideways. Focus on your KPIs. For example, the first 70 properties I bought, I never saw them. I did not have to. I looked at the numbers and knew which ones would turn me a profit and which ones would not. All of these sales were virtual, which has become the popular choice for estate dealings since the start of COVID-19.

Ok. Thank you for all that. Let’s now jump to the main core of our interview. Can you share 3 things that most excite you about the Real Estate industry? If you can please share a story or example.

1. There are literally over a million ways to run your real estate investing business. There is no right or wrong way. You could invest in all kinds of properties, including single-family, Airbnb, or senior living centers. Your options are wide and varied, and this means you have many ways to be successful.
2. In real estate investing, you can have a defined skill set and build a business around it. This industry loops in people of multiple talents. I, for example, am good at data and marketing. I hired other people with the talents necessary to help run my investing business.
3. You can achieve financial freedom in real estate investing. I am living proof this is true! You can spend a short amount of time — for me, it was 2 years — working in real estate to live your dream.

Can you share 3 things that most concern you about the industry? If you had the ability to implement 3 ways to reform or improve the industry, what would you suggest? Please share stories or examples if possible.

1. There is a lot of misinformation out there, easy scams, and investors who claim to be experts, but in reality, they are not. You have to be wary of where you get your information from when you start out in real estate investing. Look to those who have been in the business for many years and have many properties under their belts. Those are the experts who can help you find your way.
2. These are uncertain times in the industry. First, there was the virus (COVID-19), then house prices increased (and are still rising). We are currently in a seller’s market, where buyer demand is high and available inventory is low. The issue in real estate is unexpected changes often happen, and to be successful, you need to be ready to adapt quickly. House prices could go down tomorrow, or they may keep going up. Being flexible allows you to keep your head above the waters.
3. Always research. Do not take one person’s advice or coaching. Educate yourself and stay atop of trends. Rather than turn to one expert investor, and take their word as gospel, speak to several, and gather their insight to help you draw your own conclusions and decisions. There is so much information out there, so many sources you can turn to, and the time you invest to learn can help you turn a profit in most situations

What advice would you give to other real estate leaders to help their teams to thrive and to create a really fantastic work culture?

I recommend you hire good people that fit in with your culture and values. Your values for your business should be clearly laid out and true, not ones that just sound good. If a prospective hire does not fit or meet your values, do not hire them. Hire only those people who share your thoughts and work ethic, because they will contribute to your business objectives and success.

Ok, wonderful. Here is the main question of our interview. Can you please share with our readers your “5 Things You Need To Know To Create A Successful Career Buying, Rehabbing, and Selling Properties”? If you can, please give a story or an example for each?

1. You Make Your Money When You Buy, Not When You Sell: Contrary to what you see on television, it is extremely difficult to make money flipping houses. At the start, you are bound to make mistakes with fixer-uppers. My recommendation is you buy a house that is right to begin with at a great, low price. Look at purchase prices, and buy houses at a discount. The best way to do this is by marketing to owners before they are listed on the MLS.
2. Leverage Your Time by Hiring a Team: There is more to being a house flipper than buying, rehabbing, and selling. You have to market yourself, find leads, then nurture and follow up with them till they are ready to sell. You can quickly wear yourself down, trying to do it all. This is why a team is so valuable. Hire people to handle your marketing, renovate your houses, and converse with leads, so that you can focus on sales and closing deals.
3. Speed and Quality, Not Price: When hiring a contractor, you always get 2 out of the 3 wanted merits: price, speed, and quality. Always forgo price. Pay for quality work done fast. If you cut corners and go with a cheap contractor, you will get cheap work. Instead, hire a contractor who seems expensive on paper, but delivers a job worth the expense.
4. Location, Location, Location: A flipped house is only worth as much as its location. Consider the city, the neighborhood, and where the neighborhood is located. It helps if the house is in proximity to favorable amenities, like stores, recreation, and entertainment outlets. Pay attention to busy streets, noise sources, and bad neighbors. To elaborate on this further: your best deals are those houses that are neglected or need work done, that sell for a low price, but are in a great neighborhood in a good part of town. You invest a little to fix them up, and then sell them for a much higher asking price than what you paid.
5. Know Your Numbers: Before any project, know how much it is going to cost you. Add the purchase price to the expenses to fix and flip. Figure in closing and carrying costs, and also contractor and realtor fees, if applicable. The best way to know these numbers is to enter a joint venture with an experienced flipper on your first deal. This way, you get on-the-job training, learn the fundamentals, and connect with an expert source who can advise you on flipping houses.

What are the most common mistakes you have seen other people make when they try their own hand at house flipping? Can you share any stories?

There is a shocking 95% failure rate among real estate investors. Most lose their money and see no return on investment due to a lack of experience, lack of information, miscalculating numbers, or not investing the time and energy to make their business a success. What I see most of the time is investors buy too high rather than purchase properties at a discount.

From your experience, what can be done to avoid those errors?

The best money you will ever make is the money you never lose. Calculate and trust your numbers. If the numbers show a good deal, take it. Be wary of realtors and their promises that they can sell your property at a great price. Also, do not force a project that is bound to fail. Often, the best deal is the worst property in a great location. You buy it at a low price, invest a little money to renovate it, and then sell it for a profit.

You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the greatest amount of people, what would that be? You never know what your idea can trigger. :-)

Simple — I would inspire people to do what they are good at. Too often people try to do something they are not passionate about, which makes their job a burden. I encourage people to focus on their talents and their strengths when going into business for themselves, just like I did, and outsource the rest of the talent they need.

How can our readers further follow your work online?

You can follow mine and my team’s work at GoForClose on our website at https://www.goforclose.com/ and on our social channels via Facebook and YouTube.

Thank you for your time, and your excellent insights! We wish you continued success.