#040 Dirk Watters shares stories of success big and small.
On this episode of House Flip Masters Holly is joined by guest Dirk Watters. Dirk is a San Diego investor with 3 and a half years experience. Dirk has a varied profile; he has dealt with lease options, wholesales, rehabs, and high-end deals.
Dirk grew up around real estate - his father was a commercial developer – he saw all that his dad was involved with but decided that commercial development wasn’t for him due to the length it takes for a deal to close. Dirk went to college at the University of Wisconsin and worked as a sales manager at an insurance company for a couple of years. Dirk liked his job but didn’t love it and shortly after he started to get the real estate itch. Dirk says he went to the Bigger Pockets forums and started educating himself on the real estate world. Dirk started off with wholesale events, which set him apart from most people because the people he talked to had not heard of what he was doing just yet. Dirk met some contacts at a seminar and went into business with them doing some high-end, multimillion-dollar, flips – which were his first flips ever. Presently Dirk works with partners in San Diego that work with flips that are homes $500,000 and up. Sometimes they venture into flips that are $1 million dollars.
Holly asks Dirk to share what his influences are being newer into the real estate world. Watters says that he did a few courses, he took some from Robert Kiyosaki and that is when he says he had that moment of commitment where he decided that he was ready to dive in and not turn back. Holly and Dirk both agree that you have to have commitment to be successful in this business. Dirk advises listeners that there are great free resources available to those people that are just starting out. Holly feels that paying for classes and programs sometimes helps to make you more accountable for your business. Dirk also advises listeners to not go out in this business as a lone wolf, partner up with people who are experienced and are willing to help guide you along the way.
Holly asks Dirk to share what his first rookie mistake was – Dirk says that he was working on a flip and got caught up in all of the finishes; the flooring, cabinets, and countertops – and he went over budget by $20,000. Because of this mistake a great deal turned out to only be an okay deal. Holly agrees that she also made this same mistake on her first flip.
Holly asks Dirk to share what some of his strategies are when he is dealing with sellers. Dirk shares that for a while one of his strategies was to go after individuals in foreclosure. He had a team that would go out and door knock to find deals for him. He had one agent who was out door knocking and she found someone who was living in a camper on the front yard of the property. The owner of the home was living in a camper and renting out his home so that he could make the mortgage payments. Dirk was able to go in and help this seller turn his life around. Dirk took this house over as a “Subject to.”
Holly is impressed with Dirk’s knowledge on “Subject to” and asks him to share what that means for listeners who may not know about this strategy method. “Subject to” Means that you’re taking over the property “subject to” the existing mortgage, you are taking over the payments for the length of time that it takes to rehab the property until you are able to sell it. Holly reminds listeners to not discount the value that realtors bring to deals, without a relator Dirk may not have found this deal. Dirk and Holly both agree that it is vitally important to have a team of great agents on your team because as an investor you may not have the time to go out and look for these deals and it helps to have someone who is looking for you.
Holly asks Dirk to share what the most frustrating part of being an investor is. Dirk prides himself in being punctual and finds that he dislikes the waiting game. He advises listeners to stay on top of their projects and make sure everything stays on a time schedule by staying organized. Dirk uses ‘Slack’ to help keep his team all on the same page because he finds that people pay more attention to notifications that are for business versus a text message or an email. Holly shares that she uses Google Docs to help her stay organized with her team.
Dirk wants to advise listeners to remain resilient when it comes to this business, because things will go wrong but that is not the end of the deal. Holly says that while she doesn’t know everything she knows someone who does know what she might have a problem with. Remain resilient and resourceful to be successful in this business.
If you are interested in getting in touch with Dirk you can visit his website