Dean Graziosi talks with Scott Yancey from Flipping Vegas about buying distressed properties when prices hit bottom. They cover recent deals with low purchase prices and rental income, using outside capital, and why acting now matters before prices rise.
April 15, 2013.
A&E (AE in transcript).
$350,000–$400,000.
About $70,000 each.
Nine.
Hey, everybody. Welcome to the Weekly Wisdom. I'm Dean Graziosi. If you're new to the site, welcome. I'm sitting here with a friend of mine, Mr. Scott Yancy. If you recognize him, he's on the hit show Flipping Vegas on ae. Last year was your first year?
Yes, we had an excellent season last year. We became AE's number one daytime television show. And we just finished filming our second season, which should air sometime towards the end of summer.
Cool. And now here's why Scott's here today is Scott is a badass. I'll say that with. I didn't have any other term to.
Say, but I don't have arms this big, whatever. And I'm bad in other ways.
No, but you know what's cool about Scott is he doesn't just have a reality show where he pretends to be a real estate investor or they set things up. Scott is an amazing investor, flipping houses week after week on tv. And you know why I love it, Scott? Is because you're helping make real estate cool again. You know, I mean, real estate has got a, has had such a negative, you know, black eye for so long and people saying you can't make money. And, you know, it's all foreclosures and rundown houses. And every week you take a run down house, you and your beautiful wife Amy, fix them up, make them better and flip them for a profit. I mean, I have to tell you, I watched the show a couple of episodes and it's very entertaining because you and, you and your wife are like Ricky and Lucy, back and forth, it's fun. She goes over budget, you yell at her, you're freaked out, but at the end of the day, entertaining. But at the end of the day, the foundation is. You do the principles of making money from a bottom market.
Absolutely.
No.
And you touched on the first thing. Real estate kind of has been like a bad word most of the time when people use the word real estate, oh, I lost my house or have no equity or I'm upside down or short sale, da da, da. And the media and everybody is so negative about real estate. And that's something that I do think I'm putting a positive spin with the show. I, I'm showing, you know, hey, this is probably the best word you should have in the number one word in your reality. I mean, to buy real estate. Right now at the bottom, where I live in Las Vegas, our prices are what they were 15 years ago.
That's amazing, isn't it?
Last week I bought houses that were formerly 350 to 400,000 for $70,000. I put nine under contract last week. Five of them are already rented. And the renters are paying 1,100amonth.
I mean, think about. And when Those houses worth 3, 350, what'd they rent for? Same price, $1,100 a month. Now you're buying it for 70, 80.
It's amazing.
Still, $1,100 a month.
Is there a better word in your vocabulary than buy real estate at the bottom?
Right.
Okay, maybe buy real estate at the bottom. Okay, four words.
Right.
But it's definitely. It's fun to do this show. It shows that we're able to buy things that are distressed, add value. And.
And the fortunate thing is, most of the time you don't even use your own money. I know a lot of times you have outside money coming in.
Exactly.
Because you know, as we talk, there's billions of dollars on the sidelines wanting to get into the market. And Scott takes advantage of that for the people that don't know how to find deals. But you do. Right. Because that's what we talk about. You know, Scott, I know you've watched my blogs and I appreciate all the compliments. You know, we were sitting here talking about the lives we change. You read all the posts. You know, I do these video blogs every week for my students to keep them inspired.
I get them and watch them too.
I know you do. Keep people inspired, motivated, and give them the drive to make sure they don't give up on themselves and take advantage of this down market. Is there any. Anything you'd like to share with my students before we go? Just about today's market taking action.
Well, I would say two things. One is this is definitely the best time, but it's limited. It doesn't last for long. If you think of the market, it goes up, it goes down, and then it goes back up. We're in this little spot on the bottom. We don't have a lot of time. I mean, I made my wife quit a $200,000 a year job to help me with our business because there's. There's just not enough time for her to be working for someone else making them money. And I mean, she had a job that she didn't like. She had to work weekends. Instead, she works with us. We go to the lake on the weekends or we go to the beach. But the one thing I would say is it's a limited amount of time that you have, and all you need to do is just go. I mean, it's just you can't go wrong buying at the bottom and you need to take action in this short window.
You know what's really great is to have another expert on here. You know, this is what I say week after week. And this is coming from Scott's heart, just sharing on his. Hey, let's do a quick blog. But it's time. It's real estate. It's now. And the support of this website, our Success Academy, our live events, our boots on the ground. And of course last week we did the Edge event. What an amazing event. I know. There's been so many posts on the site about the Edge. It was amazing meeting so many incredible people that I knew from DG.com but I got to see put the face with the name. And if you didn't make the Edge, that's okay. You have so many other opportunities. Be trained all around the country with our live events, my books, the Success Academy. It doesn't matter where you are. All that matters is where you want to go. And if it's just my book you can use, then wonderful. Go for it. If it's the Edge, then get your butt there next year. Learn from the people on this site. Just make sure, like Scott said, you don't miss this window of opportunity to just have. Let me just say one thing. We're going to show you how to make money all the way up as we climb. But there's no better time than right now. So it's time to take action. Thanks again, Scott. Appreciate having you here. Thank you and we'll talk to you soon.
