From $80k in Credit Card Debt to 100+ Deals with Glenn and Amber Schworm | BP Podcast 15

TL;DR

Glenn and Amber Schworm share their journey from debt to real estate success.

Transcript

are you looking to become a better real estate investor then hang on because you're about to experience another episode of the world's most popular real estate podcast the BiggerPockets podcast but before we get to this week's show I wanted to invite you to become part of our community biggerpockets.com the real estate investing social network the ... Read More

Key Insights

• Glenn and Amber Schworm started their real estate journey in desperation, with significant credit card debt and personal challenges, but used real estate flipping to transform their financial situation.
• Their first flip involved buying a house from an elderly couple who were overwhelmed with renovations, highlighting the importance of solving sellers' problems.
• The Schworms emphasize the value of learning from each deal, regardless of the initial profit, and investing time and effort into education and personal development.
• They transitioned from doing all the renovation work themselves to hiring contractors, which allowed them to scale their business significantly.
• Building a team was crucial for their success, as they hired an office manager and project manager to handle growing responsibilities.
• The Schworms have developed a successful private investor base by being transparent and offering competitive returns, which has allowed them to fund more deals.
• They use various marketing strategies, including bandit signs and direct mail, to find deals, while maintaining integrity and transparency with sellers.
• Their approach to wholesaling includes being upfront with sellers about their intentions and securing large deposits from buyers to ensure commitment.

Questions & Answers

Q: How did Glenn and Amber Schworm start their real estate journey?

Glenn and Amber Schworm began their real estate journey from a position of financial desperation. They were both going through divorces and had significant credit card debt. They decided to pursue real estate investing as a way to change their financial situation, starting with flipping houses. Their first deal involved solving a problem for an elderly couple who were struggling to renovate a house, which they purchased and flipped for a profit.

Q: What was the Schworms' approach to their first real estate flip?

For their first real estate flip, the Schworms purchased a house from an elderly couple who were overwhelmed by the renovation process. They did most of the renovation work themselves to save money, despite not having a contracting background. This hands-on approach allowed them to learn valuable lessons and ultimately sell the house for a profit. They emphasized the importance of solving the sellers' problems and investing time and effort into the project.

Q: How did the Schworms transition from doing all the work themselves to hiring contractors?

The Schworms transitioned from doing all the renovation work themselves to hiring contractors as they began to scale their business. Initially, they found themselves with multiple properties to manage simultaneously, which made it impossible to handle all the work on their own. By hiring contractors, they were able to take on more projects and focus on growing their business. They learned the importance of finding reliable contractors through a thorough interview process and offering consistent work.

Q: What role did building a team play in the Schworms' success?

Building a team was crucial to the Schworms' success in scaling their real estate business. They hired an office manager to handle clerical tasks and a project manager to oversee renovations. This allowed them to focus on acquiring new deals and marketing. By investing in the right people and trusting them with responsibilities, they were able to expand their operations and manage multiple projects simultaneously, leading to significant growth.

Q: How did the Schworms develop a private investor base?

The Schworms developed a private investor base by being transparent about their business and offering competitive returns. They started by reaching out to friends and acquaintances, presenting them with specific investment opportunities. By offering a percentage return on investments and demonstrating successful track records, they gained the trust of investors. Additionally, they offered referral bonuses for investor introductions, which helped expand their network and secure more funding for their deals.

Q: What marketing strategies do the Schworms use to find real estate deals?

The Schworms utilize various marketing strategies to find real estate deals, including bandit signs, direct mail, and sponsoring local organizations. They place signs in strategic locations to attract sellers and send direct mail to property owners. They also participate in local investor groups to network and find potential deals. Despite the effectiveness of bandit signs, they emphasize maintaining integrity and transparency in their marketing efforts to build a positive reputation.

Q: What is the Schworms' approach to wholesaling real estate?

The Schworms' approach to wholesaling real estate involves being upfront with sellers about their intentions. They secure properties under contract and then market them to their extensive buyer list. They require large deposits from buyers to ensure commitment and conduct double closings to facilitate transactions. By being transparent and honest with sellers about their plans to resell the properties, they build trust and maintain a strong reputation in the industry.

Q: What do the Schworms believe sets successful investors apart?

The Schworms believe that taking action is what sets successful investors apart from those who are not. They emphasize the importance of not just reading and learning about real estate but actually taking the steps to get involved in deals. They encourage new investors to overcome fear and hesitation by jumping in and learning through experience. By continuously taking action and learning from each deal, investors can achieve success in real estate.

Summary & Key Takeaways

• Glenn and Amber Schworm started their real estate journey from a place of financial desperation, using flipping to turn their situation around. They emphasize the importance of solving sellers' problems and learning from each deal. Their early success came from doing all the work themselves, but they quickly transitioned to hiring contractors.

• Building a team was key to their growth, as they hired an office manager and project manager to handle increased responsibilities. They developed a strong private investor base by being transparent and offering competitive returns, which allowed them to fund more deals.

• Their marketing strategies include bandit signs and direct mail, but they maintain a focus on integrity and transparency. In wholesaling, they are upfront with sellers about their intentions and require large deposits from buyers to ensure commitment. Their success is attributed to taking action, continuous learning, and building strong relationships.