If you're currently sitting in your college dorm room wondering what the future holds, this is the story for you. Here, we dive deep into the journey of how a young real estate enthusiast managed to earn $20,000 on his very first wholesale deal—all while still in college.
A Dorm Room Start
Imagine being in your college dorm, surrounded by textbooks and friends opting for parties. Yet Dawson Skorczewski chose a different path. He began cold calling real estate leads directly from his dorm room. Equipped with a dialer and tons of ambition, Dawson managed to secure a $20,000 wholesale fee within 30 days by collaborating with an experienced partner.
"Leverage was in the leads. Right. So if you have the lead, you'll get rid of it somehow." - Dawson
The Motivation Behind the Grind
What motivates a college student to veer away from the usual college activities and dive into real estate? For Dawson, it was the desire to make money. He started with couch flipping – purchasing sectional couches at low prices from online marketplaces and selling them at a significant profit. His success in this venture inspired him to try his hand at wholesale real estate.
From Couches to Real Estate
Couch flipping, in many ways, laid the groundwork for Dawson's real estate journey. The core principle was the same: buy low, sell high. He leveraged online platforms to find good deals on couches, a strategy he later replicated in real estate by using DealMachine's software to locate promising properties. His experience with the logistics of couch flipping (like hiring a junk removal guy and a photographer) equipped him with the skills needed for real estate transactions.
The Cold Calling Strategy
Cold calling was Dawson's primary method for finding leads. Initially, he started by hand-dialing numbers, which was incredibly inefficient. The game-changer came when he integrated DealMachine and a dialer, allowing him to call multiple leads quickly. This level of efficiency, alongside consistent effort (making calls every day), played a crucial role in securing his first deal in just two months.
Efficient Marketing
Dawson's business is testimony to efficient real estate marketing strategies. His team leverages a mix of organic SEO, cold calling, texting, and Google PPC, all while keeping the monthly marketing budget around $3,000. This approach has yielded impressive results – approximately ten deals a month.
Key Marketing Techniques
- Cold Calling and Texting: A significant portion of their marketing budget goes into these methods, generating a large volume of leads.
- Organic SEO: This cost-effective strategy produces a substantial number of deals, despite its low maintenance cost.
- Pre-Foreclosures: They actively track these properties using court-provided data, offering unique opportunities without incurring significant expenses.
The Importance of Local Networks
Dawson emphasizes the value of understanding and working within your local market. His deep knowledge of the Sioux Falls, South Dakota market, coupled with strong local connections, has been pivotal in his success. The benefits of being local include intimate market knowledge and the power of word-of-mouth. In fact, a significant portion of Dawson's deals come from referrals.
Building Transparency and Trust
Transparency is a cornerstone of Dawson's business approach. He openly discusses repair cost estimates, sale expectations, and the profit margin with potential sellers, fostering trust and easing negotiations. This openness has not only facilitated smoother transactions but also helped in building a reputable brand in his community.
"A big part of our business is just understanding, you know, what if we're not the best fit for you? Because a lot of people who are motivated sellers, they usually have a time constraint or a severe life event that's like, oh, I need money, like now." - Dawson
Scaling and Future Goals
Currently, Dawson and his business partner have a stronghold on their local market and manage multiple ongoing projects. Their goal is to expand their marketing reach. Dawson has also ventured into helping other real estate investors by offering SEO services tailored for the industry. This new direction not only diversifies his business operations but also allows him to share his cost-effective marketing methods with others.
Who Can Benefit?
While Dawson's SEO services are effective, he advises them for investors who have already completed a few deals and established a marketing funnel. Organic SEO is a long-term strategy, ideal for those committed to staying in the game for years and looking to dominate online search results.
Final Thoughts
Dawson's journey from couch flipping to securing substantial real estate deals is a testament to what can be achieved with consistency, strategic thinking, and leveraging technology like DealMachine. For those in real estate or looking to enter, Dawson's story is both inspiring and actionable. His approach emphasizes the importance of starting small, leveraging local knowledge, and continuously optimizing marketing strategies.
So, if you're looking to break into real estate or scale your existing operations, take a page from Dawson's book. Start smart, remain consistent, and always seek ways to optimize and improve. The journey may start in a dorm room, but with the right strategies and persistence, the sky truly is the limit.
