Member Andrew Peacock Shares House Academy Success Stories (HA 1250)
Member Andrew Peacock Shares House Academy Success Stories (HA 1250)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hi.
Steven Butala: Welcome to The Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.
Jill DeWit: And I’m Jill DeWit, broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I speak with member Andrew Peacock to find out how he’s using Land Academy to his success. I’ll tell you, we just spoke with him early, a little pre-show discussion, and sounds like this show might be a little bit more appropriate for House Academy.
Jill DeWit: I know. This is very cool.
Steven Butala: We’ll see. This might be a House Academy Show.
Jill DeWit: I love it.
Steven Butala: Tell us please, again, Andrew, when you started with us and how it’s been going for you.
Andrew Peacock: Sure, yeah. I started with you guys November of 2016 and I kind of fumbled around a little bit and started sending out mailers. I actually received the first I think … Jill, you were doing a promotion. Get a free lot. I got a lot in Cochise County and it was awesome. I actually put it right up there on eBay. I did a little eBay auction and I sold it for I think it was 950 bucks and it was for me proof of concept. It was that thing where it’s literally you hear this, we’re going to sell land. We’re going to flip land. I’ve never heard of it before. For me, that was the thing that grabbed me. I’ve always been an entrepreneur from the start. I never really knew what it was. Actually I play professional football. A lot of those guys in the locker room, they were real estate investors. A guy by the name of [Ryan Brolls 00:01:39] handed me that little purple book, I Risk That, Pore That. It literally opened my eyes.
Andrew Peacock: It put a name to what I felt like I was. I started searching for little things I can do on the side. I came by another land podcast. We won’t speak of his name. I know that’s a joke that’s been going on for forever. It wasn’t complete for me. It didn’t have all the things I needed. I just felt like it wasn’t it for me. I kept searching, found you guys. Literally just from the time I started listening to the podcast, it was it. I knew I was home. This is funny because I think Jill a couple podcasts back you were talking about the transition of your microphones and your technology and all this stuff you guys are using. I’ve heard all of it from the start, from the finish. I definitely related with that.
Jill DeWit: You could hear the firetrucks in the background.
Andrew Peacock: Oh yeah. I remember that. It was funny. After the football transitioned to pharmaceutical sales. If you know that job, you’re literally in the car for 400 miles a day. I was introduced to podcasts. I literally self taught myself everything I needed to know. With that early technology, I would have to adjust the volume a little bit.
Steven Butala: You know what? I’m sorry.
Andrew Peacock: Oh no, you’re fine.
Steven Butala: I take personal responsibility for that. Right around show, I don’t know, 998, we figured out the technology.
Andrew Peacock: It’s all right. That’s all right. I listen to every single show. It was that self taught education through you guys, your podcast. I did it part time. The entire pharmaceutical, this was 2017. I did part time land and then I woke up around the 4:30 range. I worked on the land for about four hours, get in the car, drive, come back home, 4:00 PM, work until 8:00 PM on land. That’s just what you have to do. That slowly took over the pharmaceutical salary. I made the leap into the houses. Literally it’s the same concept. We’re flipping properties. It doesn’t matter the asset or vehicle. For me, I remember … sorry. I was about to call you Jack. Steve now …
Steven Butala: It’s okay.
Jill DeWit: He’s evolved.
Andrew Peacock: You used to talk a lot about you can do this with boats, you can do it with planes, you can do it with pretty much any asset class. As long as they’re recorded at the county. That’s all the data we need. We’re data geeks over here. I jumped in and tried it at houses, the first mailers sucked but I slowly learned over time, slowly learned how to price. It’s awesome now. Been in it full time, been in it full time since February of last year.
Steven Butala: How many deals have you done just with whatever you’re comfortable sharing? As much detail.
Andrew Peacock: Yeah, I’m transparent in numbers. I actually did this entire breakdown yesterday before the podcast. This year so far I’ve done 16 deals. I’m at an average profit margin of 14 thousand per deal. That’s we’re right at 228 thousand revenue.
Jill DeWit: That’s awesome.
Andrew Peacock: As far as-
Steven Butala: That’s fantastic.
Andrew Peacock: Oh yeah. It’s awesome. I’m slowly transitioning new things as far as marketing avenues. I’m trying out cold calling. I’m trying out all these other things. This is all just from letters. The beautiful number that I love to see, the cost per deal. This includes literally money penny is my call center service. Just like [inaudible 00:05:34]. Real quest data and the actual mailers. This includes all that. 1200 bucks per deal to make 14 grand. That’s, in my eyes, pretty awesome. As far as letters sent, I’ve sent out about 14 thousand letters so far. It takes 900 … well, 899 letters to get a deal.
Steven Butala: 899?
Jill DeWit: That’s awesome.
Andrew Peacock: 899 so far this year.
Steven Butala: We’re at like 1800.
Andrew Peacock: Oh really?
Steven Butala: Yeah.
Jill DeWit: Houses, this is houses too?
Andrew Peacock: Oh yeah, yeah. You guys are in multiple markets, right?
Jill DeWit: Yeah.
Steven Butala: Yeah.
Andrew Peacock: I’m just focused here. I’m in North Carolina so I’m focused in the Mecklenburg, Charlotte area and surrounding area. I’m digging these streets pretty hard as far as recognizing the price per square foot on each one of these streets. All that stuff. I don’t know. I’m assuming it’s just from doing it over time. It’s just getting better and better.
Jill DeWit: That is so good.
Steven Butala: You obviously got this figured and are a very bright guy. There’s no way you could’ve played on the line in football. What position did you play?
Andrew Peacock: I played receiver. I actually played for the Detroit Lions. I know you’re from Detroit over there. I played, it was a short stint. It was a year and a half. I was in a practice spot and all that stuff. It was a pleasant experience. I’m so glad to be making this type of money, not banging my head every day.
Jill DeWit: Literally.
Steven Butala: Did you have to live in Detroit while you were playing there?
Andrew Peacock: Yeah. We stayed in Dearborn. That’s where the practice facility was. Literally we would only go in Detroit when it was game day. We stayed in Dearborn.
Steven Butala: I’m from Detroit. I had to spin that sign there.
Andrew Peacock: Dearborn wasn’t bad at all. I know there’s a lot of change going on in Detroit too, by the way. All that stuff. I heard it’s a lot of money going in there. It was a pleasant experience.
Steven Butala: You’re killing it with the houses. You did 14 deals so far this year. You’re at, you said 14 right?
Andrew Peacock: 16, 16.
Steven Butala: Okay. Oh 16 with 14 thousand profit. What’s next? I mean are you going to just increase the amount of deals that you’re doing? Are you comfortable with that number? What’s going to happen next?
Andrew Peacock: No. I’m definitely …
Steven Butala: Complete control over this.
Andrew Peacock: Sure. For me, as I mentioned before, I’m entering a different kind of marketing avenue. Just trying it out. I have three, four time cold callers now. They’re literally taught on a script basis. This way I can remove myself from that arena as far as the market. I can also still send letters. I’m literally just trying my hardest to increase the number of leads. As you guys talk in houses, it’s all about your buyers list. It’s all about numbers as far as price per square foot, all that stuff. I know pretty much within 30 seconds if it’s a deal or not. Now it’s just about how do we increase the number of these leads? Buyers are fine, I don’t need to increase that point. I’m also entering … and just to back up a little bit.
Andrew Peacock: Most of these have been assignments. For listeners, I don’t know if you guys know or not. An assignment is simply assigning your place on that contract to your end buyer for a fee. For an example, if I get a property on a contract for a hundred grand, I sell it to my buyer for 110. He pays me ten thousand dollar assignment fee. Those have been the meat and potatoes for me so far. Recently I’ve actually been closing on some of these deals and throwing them right up there on the MLS. It takes a specific house for that though. There’s a perfect avatar. It has to only need cosmetic work. You have to be able to attract to the end buyer, that type of thing. Those, I’m averaging right around 32 thousand for those.
Steven Butala: That’s an experience too. We double. Our return is double when we close on it.
Andrew Peacock: Oh yeah. Yeah. My end goal I would say. I love what Justin is doing with plumb. I just think all the time, if we can generate this amount of leads and houses, and come together as a group or whatever it may be. It doesn’t even have to be a group. Come together and just literally have a lot of money sitting on the side to close on these things and listen on MLS. From the ones that I’ve done so far, I throw them on MLS. We get over our ask in three days. They’re gone. I’m not doing anything to these. These are not … I think you guys have done a couple where you put five, ten grand into it and still got … whatever it may sit a little bit. These are literally ones that you’re talking ten dollars a square foot work or rehab. That’s I would say the next thing for me.
Jill DeWit: That’s awesome.
Steven Butala: How do you use your cold callers? Do they follow up on the mailers or do they just open the phone book and go? How do you use them?
Andrew Peacock: The same list I download from real quest, I take that list. We hit these people twice. We hit them with the letters. Then we also hit them … we get that list skip traced. I have a skip tracing service. By the way, I’m a part of another group as well, cold calling group. I truly believe in joining groups when I spark up a different idea. I joined that group and they provided a script, kind of what you guys do just with cold calling. My cold callers, they have to dial 400 numbers a day. We’re right around a 10% contact rate, which is right where you want to be. If they hit their goals, which is one deal a week, then they get an extra bonus at the end. Literally once I download the list for letters, I skip trace that list and send it to my cold callers.
Jill DeWit: Cool. Have you really seen the benefit? Is it a script like hey I sent you a letter a week ago, just following up, are you interested in selling? Do you think it’s made a difference?
Andrew Peacock: It’s definitely made a difference. The approach from there end is different. We don’t mention the letter. We literally are going from a different angle. We’re contacting them as if we’re investors in the area, whatever it may be. We don’t mention anything about the letter. We want to hit these individuals from just a different point. The letter may not have attracted to them. Maybe they’re more comfortable talking on the phone. Whatever it may be.
Jill DeWit: That’s cool.
Andrew Peacock: It’s just that opportunity to squeeze out every possible deal in this area.
Steven Butala: I’m heavily researching skip tracing now because I think it’s a huge added benefit for House Academy members. We haven’t tested it yet, but we’re about to like in a week. This is very timely. In fact, by the time this airs, we will have tried it all ready.
Andrew Peacock: For sure.
Steven Butala: Have you considered texting?
Andrew Peacock: Yeah. I haven’t tried it. I’m not sure if you guys have heard a company called [inaudible 00:12:55]. Very, very efficient, very interesting concept. The cold calling group that I joined there actually teaching on [inaudible 00:13:06] as well. You can literally hire somebody to do that entire thing. That’s just another different approach. We have the cold calling, we have the letters, we have banded signs, we have Facebook ads. All this stuff.
Steven Butala: That’s it.
Andrew Peacock: The text blast is literally something that I’ve never even … I don’t think anybody has ever heard of or touched, or whatever. From what I hear, it’s very, very effective. It’s a lot more effective than cold calling. It’s that maybe before it’s time or maybe right when it needs to be done. Who knows?
Jill DeWit: Kind of like it for a couple reasons. One: it’s like a little less invasive.
Andrew Peacock: Sure.
Jill DeWit: Number two: you’re actually, this is one of the main focus of our live event this fall. It’s technology. Steve’s already working on the next phase of what we all could be doing. This is just part, a little piece of what we’re going to be sharing as we spend some more time testing, and figuring some of it out ourselves.
Andrew Peacock: For sure. For sure.
Jill DeWit: That’s really cool. I had a couple notes too. I love that. To say you obviously like … one of the things that when people find us, they think they’re all worried about the sales part. You’re all like, selling is easy. Isn’t that funny? You have to get in, right?
Andrew Peacock: Oh yeah.
Jill DeWit: You have to get in and do this and learn it. When you’re selling something for a lot less than what it’s worth, sales really are easy. People don’t believe that.
Andrew Peacock: It’s crazy easy. I know you guys used to talk about that all the time. Literally it’s the once I can get the deal, that’s the … I know it’s going to sell. Literally I know it’s going to sell right when I get it because, you know. We’ve seen enough parcels, we’ve seen enough houses. I’ve walked enough houses. Literally know right then if I can get it for that price point, it’s going to sell. I talked to a lot of individuals. That’s the fear among. One of the questions I get the most is, how’d you get your buyer’s list? How long did it take for you to build that? Literally Charlotte has one of the best Facebook groups that I’ve seen as far as real estate. I think there’s five thousand members or whatever it may be. If you’re a newbie and you find a great deal. You throw it up on Facebook. That Facebook group is gone in a second.
Andrew Peacock: I don’t think anyone should be worried about selling. As long as you know your numbers and it’s a deal that’s going to go especially in this market.
Steven Butala: What do your buyers do with these houses Andrew? Do they HGTV rehab them?
Andrew Peacock: Most of my … I mean, you know on every buyer’s list there’s a mixture of your buy and hold guys and then your rehab guys. It’s a hard job to know who does what. Even my buyers list, 10% of those guys are actually active. They’re buying most of my deals. Most of my guys are actually rehabbers. We’re right … the price point in Charlotte is much different than where you guys are. When you’re talking about an average rehab, we’re talking 25 bucks a square foot is your average rehab. Cosmetic is 15. If you’re going a full blown renovation, you’re talking about 55 bucks a square foot. That’s your sweet guidance area, whatever it may be. Most of our guys, they’re rehabbers. Pretty much any price point up to 250. When I’m downloading data, the first thing I do, total assess value is below 250. Because our sweet point is right in that 100 to 150 range. Flip it and sell it for 250.
Jill DeWit: Love it.
Steven Butala: That’s what I was going to ask you. That’s my next question. How do you specifically price these SFR mailers? Everybody’s got a different concept. You listen to our podcast. You probably know by now how I price the mailers. How do you do it?
Andrew Peacock: It’s all on APN. It’s all the APN number. Like you, you describe every sub division, every neighborhood has an APN scheme. Literally I’m going through every scheme. I’m finding the price per square foot in that area. Then I have a built in rehab cost that I developed over time. Subtract that from the ARV or whatever. Then I price every single one of them. It’s literally … depending on how compact that area is, you can price 100 houses at once. Or if you’re dealing with a more rural area, [inaudible 00:17:54] county which is Concord, North Carolina. 30 minutes away from here, very hot in market. But you’re talking half acre lots. Everything is spread out. Now I’m pricing five at a time because schemes are totally different. It takes me a lot longer to do that. When you’re in Charlotte, you’re in Mecklenburg, every house you can throw a rock and hit the neighbors. I can price so many at once where it’s extremely accurate at this point. That’s an overview.
Steven Butala: Do you price with an equation in the urban area? You don’t go into each asset and price them, do you? You run an equation like price per square foot or whatever, right?
Andrew Peacock: Yeah, yeah. Just the actual equation of the price per square foot. Then I subtract their rehab, which is my standard kind of rehab price per square foot. Then I subtract my assignment fee. Two thousand is what I shoot for on every single kind of deal. Going in, I’m right at a 5% margin of being right where I need to be, even after seeing the house. That’s how … I started off maybe 15% margin of where I need to be. Meaning the price on the letter is actual price that I know I can get it at and be very comfortable, and don’t have to renegotiate any of that stuff. When I was starting off, I was right around 15%. I wasn’t comfortable in numbers and all that stuff. I’m right down to about 5% margin of error now. Some of these houses you walk in and it’s literally a hoarder house. You don’t know that when you’re pricing letters. On my Instagram, some of my hoarder houses, they get the most hits because people are like, oh my goodness. How do people live like that? You know? From the outside it’s a beautiful brick, three two ranch neighborhood. New construction selling for half a million.
Andrew Peacock: Then you have this one sore thumb that’s literally trashed on the inside. You can’t account for that until you see the house. Back to your question, it’s literally all equation.
Steven Butala: When a wrecked house comes up, do you renegotiate the price?
Andrew Peacock: Have to, yeah. I tweak my letter a little bit. I switch to a letter of intent. I know you guys said not to do that a while back with Landon stuff. I don’t know. It gave me a little more comfortable feeling that I can go in and we don’t have an official offer price given on that letter. Everybody likes to do it different. I just want in with a letter of intent to approach. Then if I need to renegotiate, then we go and renegotiate, agree on price, and go to contact.
Jill DeWit: Good.
Steven Butala: That’s amazing. I’ll tell you, here’s my takeaway so far. The most successful people in our group have taken the concept of Land Academy and they’ve made it their own. You’ve actually taken probably modularized out this concept probably four or five pieces of it, redone it yourself, kept the mailer concept the same. Came up with a new pricing situation that we don’t actually necessarily teach, but it works for you and cold calling. Changing the letter to a letter of intent versus an offer, an actual offer. Every person I’ve spoken with that has had a huge amount of success like you have with our group, has done some version of this. They’ve taken the general concepts and made it their own. That’s awesome man.
Andrew Peacock: I think I may have just … it takes a type of person. I feel like our group is the best out there. I’ve seen a lot of these groups. We have a ton of innovators. We have a ton of entrepreneurial minded people where we’re going to figure it out. It’s literally you got something, you got a system that works. I know awhile back buying these lots in the desert for 500 bucks. That was great. We all tried it. My first mailer was, I think it was Caine, Utah. That’s pretty much the only one I did west of the Mississippi. That one and a couple more. Then I literally came over here to North Carolina. I did Asheville, I did Charleston South Carolina. I’ve done some different things with those mailers. It’s that thing in your mind where it’s like, if this concept works, I feel like I can make it work with anything. It’s a bunch of innovators here, I love it.
Jill DeWit: You’re right. There’s so many really smart people. I can’t remember Andrew, are you on our advanced group.
Andrew Peacock: I am. I’m terrible at that stuff. Like Jack said, just sometimes you get the people that start off on every call, then you don’t hear from them.
Steven Butala: Because you got successful.
Andrew Peacock: Right? I’m literally locked in my … what’s that?
Jill DeWit: … talking about. You got to come on that Friday because that Friday in October, the advance group is getting together. I’m serious. I’m locking the doors and it’s a private event.
Steven Butala: You have a lot to add man.
Jill DeWit: There’s no cameras. We’re all going to talk about what we can really do together.
Andrew Peacock: I’m there. Please. I’m definitely there. I hear Jack all the time say how you lock yourself in a … we’re data people. It’s literally we’re getting away. I don’t want to be bothered. I can price stuff forever and let me go. That’s how I’ve been. I’m definitely going to get back in the groove with you guys for sure.
Jill DeWit: Good.
Steven Butala: How many mailers are you sending out a month right now?
Andrew Peacock: A month I’m right at I would say just about two thousand. It’s not a ton. For me and I’m trying to hit, I’m literally trying to increase that profit margin on each mailer. If I’m sending out 899 and I know I’m going to get a deal, I know exactly how many I need to send out, right? It’s still I would love to put somebody in that place as far as pricing. I just feel like it’s such an art to this pricing stuff. Yeah, it can be a little bit of a science. Even when I’m pricing price per square foot on each sub division, you could have one unique property that’s right at 150. Then you have a sweet spot at $111 dollars per square foot. Somebody has to know where that sweet spot is. It’s very tough to teach that. I don’t know. I’ll probably price forever, but I would love to have a full group of maybe cold callers, maybe people who text, maybe people who do this. Just bring in a floodgate of leads.
Andrew Peacock: I have buyers knocking down the doors. We need some more leads. We’re buying the stuff up. That’s my next focus.
Jill DeWit: That’s so great.
Steven Butala: I have given up control on everything. [inaudible 00:25:10] with the exception of doing a mailer and pricing. No matter what I think is going to happen, at that last moment when you’re done with that spreadsheet, there’s stuff that I tweak. You can teach the basic stuff but it’s because you know the neighborhoods and the whole thing. That’s what it is.
Andrew Peacock: Exactly.
Steven Butala: 25 years of experience in these sub divisions that I’ve been to all of them. I just know how it’s going to go.
Andrew Peacock: Exactly. I don’t ever think I’ll outsource that. I’ll find some other things. I know I will.
Steven Butala: When you close the deals through escrow on these houses, do you close them yourself or do you have a transaction coordinator?
Andrew Peacock: We send it to attorneys here in North Carolina. The only deal I closed myself was the first one in Caine, Utah back in 2016. It was great. I’ve used an attorney pretty much for everything. Once I get the contracts in, I don’t want to talk to anybody else. I want to just get there.
Jill DeWit: Moving on.
Andrew Peacock: We have an attorney here who pretty much does all the investors. Literally from start to finish I don’t have to hear from them again. I’ll pay them a little bit to do that. You know?
Steven Butala: These cold callers, again, you don’t have to answer any of this stuff if you don’t want to.
Andrew Peacock: I’ll answer it.
Steven Butala: Are they in this country?
Andrew Peacock: No. No. That’s also a big controversial discussion. Should you get US based? Should you get Filipino? Should you get whatever it may be? Mine are all in the Philippines. What I did, literally was once you place these ads in the Philippines, you’re going to get a ton of applications. Before I’ll even look at anything, you have to send me a voice recording and a video. Before I even look at a resume, because there’s no way I have the time to look through 150 resumes that probably who knows if they wrote them or not. You know, that type of thing. I’m going to listen to all the ones who submit an actual voice recording. Then I’ll decide who I interview. It’s worked very well. If you talk to my cold callers, their accent maybe it’s very slight if there even is any. With the system I use, which is Mojo Dialer, it allows me to go in and listen to the call recordings. I can go in, I can analyze. I can do whatever it may be if there needs to be any tweaks there.
Andrew Peacock: They’re in the Philippines. I’m paying them six bucks an hour, which is pretty good money on their end. 200 bucks per lead that goes to contract. If they hit their goal, which is four contracts a month, they get a thousand bucks on the back end.
Steven Butala: When you sell it?
Andrew Peacock: No, no. Just if it goes to contract, they did their job. If they get four in that month, they get a thousand bucks. It doesn’t matter if I move it or not. Whatever it may be. They are extremely happy and extremely excited about that. I know some guys that are paying $1.50 an hour and that’s it. You’re going to get what you pay for, especially over there. They are extremely happy. They have their own group chat message. Anything that pops up, they communicate. I’m not as involved because I don’t really want to be. One is designated as the manager. Everything has to go through him first. If he can’t handle it, then I will. That’s an overview of the cold callers.
Jill DeWit: That’s good.
Steven Butala: So a lead comes in, do you personally look at the house and look at the numbers and say yep, I want to do this deal? Who calls the seller? You?
Andrew Peacock: Sure. From the cold caller leads, so lead comes in from the cold caller. The cold caller makes an initial offer on the phone. We have a system here. I’m not sure if it’s universal. It’s a CRS data. I’m not sure if you guys have heard of it.
Steven Butala: No, I haven’t.
Andrew Peacock: It spits out a very, very accurate price per square foot ARV of that house. Zillow is not accurate over here. I know a lot of people use Zillow. Red Fin is the most accurate public platform that I’ve seen. CRS data is … and you have to pay for the subscription. It’s the most accurate I’ve seen. They have their script. As this motivated lead comes in, they’re offering 60% of that CRS, ARV. That’s been very accurate so far. If they agree to that 60%, we set an appointment right away. That’s when I go in. I don’t talk to this lead until I ring the doorbell. 60% that leads out these individuals to say, hey yeah. I want to sell. You’re going to give me three million. That type of thing because we run across so many, yeah I want to sell. How much are you going to give me? Or whatever it may be. We’re weaning through all those individuals. The only way I want to go to their house is if we’re anywhere in that ballpark.
Steven Butala: This is fascinating. I can’t remember when I’ve learned so much on a … I’m supposed to be interviewing you, you know? I’m sitting here taking notes. I’m listening. It’s amazing.
Andrew Peacock: Thank you. Thank you. It comes from you guys. You guys started all this stuff. I can’t wait to collaborate for sure.
Jill DeWit: This is good stuff.
Steven Butala: Do you feel like you’re running out of real estate? You’re in one MSA. Are you going to expand?
Andrew Peacock: That’s what I wanted to ask you guys. For land, we hit accounting, we move on. When I’m here in Mecklenburg, you send someone a letter that’s stating a certain price, right? You come back and try to hit them with another price no matter whether it’s two of the three months later, six months later. They’re always going to refer to that first letter. I’m going through the second mailer of Mecklenburg now. I’ve heard that a couple of times from the leads that are coming in. I’m wondering if that’s an issue or not. I’m not sure in my opinion. So many things change over time. So many people go through divorce. So many people inherit property. So many people … all these issues that come up happens. I’m not sure if it will be an issue or not, but I would love to do the virtual thing. Have boots on the ground like you guys talk about. Literally place somebody. You can pay a realtor if you want. Just somebody that goes to the houses. I can do this price point anywhere in North Carolina.
Andrew Peacock: If you figure out the scheme for any state, you can do it there. It’s literally numbers. It’s all data. All you need is a trusted boots on the ground somewhere. If you can get that, somebody who is not going to undercut you and all that stuff, I think you can do it. You can make a very, very large machine if you do that.
Steven Butala: Exactly. That’s what House Academy is all about. That’s what we teach. You got to get that trusted boots on the ground. What I say in the House Academy program is, and I’m not selling anything here. You’re doing it exactly how I said to do it in the program. You have to, in my opinion, conquer all this stuff yourself. Learn how to do it so you can train your boots on the ground.
Andrew Peacock: Exactly.
Steven Butala: You’re ready. You’re right there and ready for it.
Andrew Peacock: Oh yeah. It’s something I definitely want to do. I haven’t tried it yet, but I know exactly what market I want to go to. Wake county here in North Carolina, which is the Raleigh, Durham area. Extremely similar, but a lot more spread out than Mecklenburg. It’s a ton of potential. I’ve actually bought a lot of lots there in Wake county, which this is before you guys started talking about info lots. I jumped to info lots probably six months into the game. I did. I was like, it sounds so simple, so I’m just going to give it a shot. That’s how I made all of my money in 2017, was info lots. It was right here in North Carolina. That’s what allowed me to quit my pharmaceutical job and do this thing full time. It’s a journey, but I love trying new stuff.
Steven Butala: Fascinating. I’m stunned. Really, I mean it.
Jill DeWit: You’re another person. When we sent out our survey, I think it was in January. The number of people that said, I left my job awhile ago, I’m like, what the heck? I had no idea how many people.
Steven Butala: I didn’t either.
Jill DeWit: We’re in. We’re gone.
Andrew Peacock: Oh yeah. It was the most beautiful phone call of my life to be able to call my boss and say, hey. I found something else. I’m out of here.
Jill DeWit: I’m good. Thanks.
Andrew Peacock: I’m good. No worries here.
Steven Butala: What’s a regular day look like for you? You got to be putting in 12, 14 hours, right?
Andrew Peacock: Oh man. No. Literally for the houses. I wake up at 5AM and I do my workout and all that. I have my morning ritual, whatever you may call it. I start work around 8AM now. I go to from 8:00 to about noon as far as stuff I need to be doing in front of the computers. I’ll leave the entire afternoon open for appointments. I grind from 8AM to noon. That’s when I’m pricing mailers. That’s when I’m going over calls with my cold callers. That’s when I’m looking at new markets. That’s when I’m talking to buyers. All that stuff. Afternoon it’s literally appointments. That’s my normal schedule.
Jill DeWit: Love it.
Steven Butala: That’s awesome.
Jill DeWit: That’s perfect. Wow.
Steven Butala: These are very logical House Academy gratuitous.
Jill DeWit: What’s next? What are your goals for this year and what’s next?
Andrew Peacock: The goal for this year, 750, 750 revenue. I’m not quite on track there. I got to turn some things up second quarter, I mean second half of this year. Then I want to go into apartment complex. I’m naturally a cash flow guy. I wanted to skip over single family rentals. It’s just not enough on the bone there for me. My natural next move would be that mom and pop apartment complex. You’re talking 30 units to 90 units. Something big enough for the small investor, but too small for the big guys. It’s that sweet spot where mom and pop are still running those things, where I can go in and do some value add. Really start that portion of the cash flow. Which I listened to a podcast, it was an individual who they had a ton of land that they had no terms. It’s just a headache. I would love to have everything under one roof. I can jump into that apartments. Then I have a bajillion other things going on in my head that I want to try. That’s the next thing for me.
Jill DeWit: I’m curious because it sounds like you’ve always been a cash guy up to this point. You haven’t really done any term. It will be interesting to see how it goes.
Andrew Peacock: Yeah. I know that it’s going to take capital to get to that cash flow. For me, this entire focus for the past two, three years has been building capital until I can make that leap and actually get some apartment complex. I’m also very interested in the trucking industry for cash flow standpoint. It’s a lot of things that’s going on in my head that I want to try. Mobile home parts would love to do self storage. All that stuff. All those are potential next moves where it can be big enough to focus on.
Jill DeWit: Now knowing what you know, just knowing how to buy whatever it is right, the sky is the limit. All you have to do is [crosstalk 00:37:37]
Andrew Peacock: You are so right.
Jill DeWit: What would I like to be involved in? I’m surprised he hasn’t bought us a marina and a bar.
Andrew Peacock: It’s coming. It’s coming.
Steven Butala: Yeah, it is. I’ll tell you it’s hard to beat mobile home parks that are separate APNs and storage facilities from a hands off. It’s hard to beat those two types of assets for our personality types.
Andrew Peacock: If you have a mobile home park and you have city water, city sewer in that thing, and you own the actual land … it’s a lot of deals out here where people are selling mobile homes where they don’t own the land. You have no control over that lease or the land. That’s not what we’re talking about. We want to own that 40 acres and then sub divide it into 140 little lots. It’s city water, city storage, it’s easy. Not easy, but you’re only responsible for the land. That’s very, very attractive. A lot of people know that too. A lot of big money is going into mobile home parks now. Cap rates are squeezing just like apartment complexes were what? Five, ten years ago. Mobile home parks will be there in five, ten years.
Steven Butala: That’s right.
Jill DeWit: Right.
Steven Butala: It’s called Land Academy for a reason.
Andrew Peacock: Exactly. We don’t own the land. It’s awesome. I would love to enter that.
Steven Butala: That’s great man.
Jill DeWit: This has been awesome.
Steven Butala: I would love to have you on our live House Academy webinar as a guest, if you’re up for it.
Andrew Peacock: Sure. For sure. Anything, I would love to be involved in anything. You just let me know, I’ll be there.
Jill DeWit: I’ll make sure you get the invite.
Andrew Peacock: Awesome.
Steven Butala: We have one today. I don’t know what you’re doing at … well you’re east coast time, right?
Andrew Peacock: Yeah. I’m east coast. I have two appointments after this.
Jill DeWit: We’ll get you for next week. I’ll have them send you the invite.
Steven Butala: Perfect.
Andrew Peacock: Awesome. That’ll be perfect.
Steven Butala: That’ll be great because I think this is going to air next week.
Jill DeWit: This’ll be fun.
Steven Butala: That’ll be great.
Andrew Peacock: Great. What’s the end goal for you guys? If you had to say where you wanted to be in 20 or 30 years as far as real estate, as far as accomplishments, as far as any of that? What’s the end goal there?
Steven Butala: I’ll be dead in 30 years. Jill won’t be. Our whole goal from day one when we started Land Academy was to bring on people just like you, have you guys figure it all out for yourselves and then become your business partner.
Andrew Peacock: Gotcha.
Steven Butala: Whether it’s deal funding, or whether it’s what we’re calling reverse deal funding. Where we find a deal. Your perfect candidate, if we found either houses or a residential info lots in North Carolina, we would send you the deal, fund it 100%, and if you’re up for it, you close it. Whether it’s through your attorney or whatever and then we split the whole proceeds.
Andrew Peacock: Easy.
Steven Butala: That’s the whole end game is to get a network of people all over the country doing that. We are. It’s working.
Andrew Peacock: Sure. Sure. Nice. I would love … that Landon side to me is absolutely … if I could that with houses literally all over the country where you literally send something, we approve it, it goes through the process and we close it. Whatever it may be, I think that’s awesome. I agree.
Steven Butala: You’re familiar with Land Tank, right?
Andrew Peacock: Yep. Yep.
Steven Butala: We’re going to release House Tank here in a couple of months.
Andrew Peacock: Really?
Steven Butala: I was just talking about it. You can go on there as a lender and say, yeah I approve this deal.
Andrew Peacock: Nice. Okay. I’ll definitely check it out. Nice.
Jill DeWit: The funny thing I love, it’s going fantastic.
Andrew Peacock: Nice.
Steven Butala: We’ll have our people contact you. I’m confident that you’re just a perfect candidate to have an honorary House Academy subscription. He’s added so much to the content.
Jill DeWit: We’ll figure it out. I’ll see what we can work out.
Steven Butala: They’ll contact you.
Andrew Peacock: Perfect. I appreciate it.
Steven Butala: Andrew Peacock, amazing. Do you have a website where people can contact you? People are going to contact you after they see this, if you want them to.
Andrew Peacock: You can go to my Instagram for sure. That’s probably where I do most of my stuff. I actually post some things. People love the before and after thing. I’ll post pictures of what the house looked like when I got it. Then when a buyer finish the rehab and literally do comparisons, it’s awesome. People love that stuff. My Instagram is peacock_ac. Carington is my middle name, so AC. That’s where I do most of my stuff on Instagram. My website, my company’s name is ACP Home Investments. The website is www.acphomeinvestments. That’s pretty much it. You can definitely, if you want to reach out and contact me. You can andrew@acphomeinvestments. You’ll get to me. I’ll definitely respond.
Jill DeWit: Awesome.
Steven Butala: Amazing interview Andrew. Thank you.
Jill DeWit: Thank you so much.
Andrew Peacock: Thank you guys so much.
Steven Butala: [inaudible 00:42:46] it’s been another 20, probably 30 minutes listening to the Land Academy show. Join us next time for another interesting episode.
Jill DeWit: And we answer your questions. Post them on our online community at landinvestors.com. It is free.
Steven Butala: You are not alone in your real estate ambition. Amazing talk pal.
Andrew Peacock: Oh man. Thank you guys so much. That was awesome. I always dreamt about the time where I would get to talk to you guys and all that stuff. I never knew how it would go. This was definitely awesome.
Steven Butala: Dude, we got more out of it than you did, I’m sure of it.
Andrew Peacock: No, no. I love this stuff. It’s so much that we can do like with this stuff. You guys literally teach the foundation of how to buy right. If you can buy right with anything, it doesn’t matter the asset class. We can take this thing all the way up to hotels if we wanted to. If we know how to buy right, it’s literally, it’s a no brainer.
Steven Butala: That’s it.
Andrew Peacock: I feel like you’ll never starve if you know how to buy.
Steven Butala: That’s it.
Jill DeWit: That’s it.
Steven Butala: If you don’t buy cheap real estate, everything is going to be fine regardless of where you are.
Andrew Peacock: Exactly. Exactly. I’m pretty young. I didn’t go through the 2008 crash. This next one is coming in my opinion. I just feel like I’ll be okay. It’s that comforting feeling like I’ll be okay. I’m going to get through that. I don’t want to say easily, but I know how to buy property. It’s still going to be buyers out there. Some of my top buyers have bought for 20 years plus. They know every cycle. They’re not worried about it either. If I can provide a profit, they’re going to buy it.
Jill DeWit: Exactly.
Steven Butala: It’s great to talk to you Andrew. I’m so happy for your success.
Andrew Peacock: Oh man. Thank you guys so much for sure. Thank you. Thank you. I can’t say it enough.
Jill DeWit: Thank you.
Steven Butala: Talk to you soon bud.
Andrew Peacock: All right. Have a good one. See yeah.
Jill DeWit: Bye.
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