091: Being a REO agent and A House Flipper with Michael Burdett
Michael Burdett grew up around real estate since his mom was a real estate agent. He went to college for international business, but was drawn back into the real estate business after college. Michael hit the ground running as a real estate agent, and became very successful very early in his career. He worked with many investors and decided he needed to be a real estate investor as well. Michael started out by partnering with his father on a few flips, but has since flipped 25 homes on his own. Michael had also had great success investing in rental properties in the Maryland area. We talk about all of this on this episode of the InvestFourMore Real Estate Podcast.
How did Michael find success very quickly as a real estate agent?
Michael went to college for international business, but after graduating he decided he would become a real estate agent. Michael started working with his mom and got his real estate license as soon as he could. Michael did not waste any time learning how to sell houses, he started calling people right away. His mom was in the REO business (selling foreclosures for banks), and she had many listings that were perfect for investors.
Michael called every investor he could to help them get great deals for flips or rentals. He was not shy, and did not wait until he learned every aspect of the business to sell houses. Michael was very successful at a very young age, and knew he wanted to be an investor as well.
How did Michael start buying his own houses and investment properties?
Michael bought his first house 6 months after graduating college. He used a renovation mortgage to finance most of the purchase price and repairs that were needed. Michael was very smart as a young agent and investor (unlike myself). He sold his first house three years after buying it for a $112,000 profit. The great part about the sale, was he did not have to pay any taxes on the profit since he lived in the home for at least 2 years. Michael used the money he made from that house to fund more fix and flips.
What kind of rental properties has Michael purchased in Maryland?
Michael loves to flip houses, but also loves the passive income rentals provide. He has bought many rentals in Maryland and thinks it is a great market for investors. Many of his houses were purchased from $70,000 to $100,000, and needed a $30,000 to $35,000 rehab. He has been able to rent these homes for more than $1,500 a month! Michael has been using the BRRRR method to buy his rentals. He buys them for cash, repairs them, refinances them, and repeats the process.
How has Michael’s real estate agent business been going?
Michael works with Roselle Realty Services in Maryland and has taken on a bigger role in the business. The office is selling 200 to 300 REOs a year and Micheal is responsible for about 65 transactions a year on his own. Michael loves to use technology to give himself an advantage over other agents like drones, Facebook marketing, and using his investment knowledge to help other investors. Maryland still has a lot of REO properties, which is great for business, but he wants to expand into more retail sales so that they are diversified.
How can you contact Michael?
Michael loves to help other investors buy rentals and flips. In fact, he helped Dennys Passeto buy a rental who was on my podcast a few months ago. Michael may also be looking for more agents to join his office as they expand. You can call Michael at 202 369 5183 or email him at [email protected].