Why You Should Know Austin & Jake Deraaff
For our sixth interview, we had on Austin and Jake Deraaff. Twins who, after dropping out of college, went into real estate. However, they didn’t invest in real estate through a Real Estate Investment Trust (REIT) as most kids their age would. They got into real estate wholesaling.
Real estate wholesaling is when an individual, the ‘wholesaler,’ acquires a contract from a seller of a property (usually at a discount) and assigns that same contract to an end buyer. The way wholesalers earn revenue is through a wholesaling fee that is attached to the transaction.
This strategy is used by many investors starting in real estate as it is an inexpensive way to make money. It’s inexpensive because real estate wholesalers generally find and contract distressed properties. Unlike flipping, real estate wholesaling doesn’t do any renovations or additions on the home, which means they carry no costs. However, this doesn’t make real estate wholesaling easy by any means. It took Jake and Austin a long time before they closed their first deal.
There were definitely times when most would’ve given up, but the twins were persistent, and finally, after seven months, they closed their first deal. That confidence springboarded them into action, and now they’re on track to seal their 80th deal before the end of 2020. On top of that, they started CloserUniversity, A Real Estate Investment Training course where Jake, Austin, and Tyler teach you the methods they’ve used to close over $3,000,000 worth of deals.
IN THIS EPISODE, YOU’LL LEARN
Why wholesaling is an inexpensive way to get into real estate, what goes into growing a successful wholesaling business, why wholesaling is better than investing in stocks or forex, and their best advice on what someone should be doing if they want to get into wholesaling. You’ll also learn why wholesaling can help beginners learn quickly about the real estate market as well as gain invaluable negotiation skills.
BOOKS, RESOURCES, NOTABLE QUOTES
“After our second year of college, we said it wasn’t for us, and so we looked for another path… At first, it was tough. We didn’t have our first deal for 7 months. But like anything else, once you attack it every single day consistently, results start to happen.”
“With stocks and all these other asset classes you need liquidity or capital to buy something. But with wholesaling, you don’t need any money down, no credit, and no college degree”
“The reason why wholesaling is so lucrative to us is that we find someone who is looking to sell their property for $100,000, we buy it from them and then find a contractor who buys and flips homes and sell it to them for $120,000. We transfer the rights to the contractor and we just made $20,000.”
“If you’re going to do it take massive action. Most times when someone fails it’s because they didn’t take enough action… I think most people get stuck on Youtube videos and books and that’s all good stuff. But if you don’t put an action plan together it’s never going to happen”
“Most people look at failure as failure I look at it as feedback”
“In regards to CloserUniversity, we wanted to give back because there are tons of people who are interested in Real Estate. Our business partner told me today ‘that it would be a disservice by not showing and giving out we have because we have so much value and so much knowledge that it would hurt us to not provide that.'”
“The number one skill in sales is being able to actively listen, and two be able to build rapport.”