On the show today we have… Jan Wanot Founder of WAREI Facebook Community!
– Jan’s Master Class – contact him via Facebook
– Jan’s first time on the podcast SeattleInvestorsClub.com/39
– WAREI (WA Real Estate Investing) Facebook Community
– Checkout Jason Nickel of Lead Sherpa podcast
– Checkout our podcast with Augie Bukowski
– Checkout our podcast with Ryan Gibson
– Checkout our podcast with Bob Thomas
– Get signed up today for the PNWRealEstateExpo.com at Seattle Hyatt Regency
Show notes for Jan Wanot Founder of WAREI Facebook Community!
The Vantastic Life is…
– is in Jackson Hole WY!
Jan Wanot is a mover and a shaker and runs the Facebook community WAREI, one of (if not the) most active Facebook real estate group. Over 6k members, and over 100 posts per day. There’s so much value in the group! It’s wonderful!
Give us a quick recap, but checkout seattleinvestorsclub.com/39 for the full story!
Yeah, I grew up in Poland, and got a job with Boeing that was great, but I wasn’t passionate about it. So I started looking into other creative outlets, and real estate was something that I tried out.
I had a rental property that produced $500/month and I didn’t do anything, so a light bulb went off in my head, and I started buying more rentals until it would produce enough money to support my lifestyle.
For the last year or so I’ve been focusing on mobile homes and mobile home park acquisitions. My goal is to own 100 pads and hold that for cash flow.
It’s been exciting and fun, and great to be in real estate investing! They say riches are made in the niches!
I love it, and I love the community. I feel very engaged and happy with my choices here!
We love watching you and seeing you charge after your goals! Are you still looking at Re zone properties?
Once I figure out an asset class I never stop looking for them. I keep my eyes open for single family deals because that’s what I learned early on.
Small singles and values adds.
Even though my focus is on the mobile.
Why did you change your goal?
Part of it was to stay engaged and I wanted a new challenge. But also from a time perspective and time for money perspective.
A big rehab could take me 8-12 months, and getting cash flowing units is great. But why not look at a larger mobile home park and it still takes a year, but have a better cash flow at the end.
Our time it limited, so at some point you have to choose how you’re going to scale up.
Most investors find a commercial class that they jive with.
I analyzed the different classes and mobile homes had the highest return.
8-12% cap rates are what we got for the mobile home parks that we’ve bought and sold. You can’t see that kind of return on other asset classes.
You said that you wholesaled 4 deals last year… what is it that was the clincher that made you wholesale it instead of keep it?
What we are saying is that people don’t have to start with little single family, or BRRR. Those are great, but you can start in a bigger asset class. People can.
The hold up is not capital or the team. I can raise the capital, and have people excited.
The hold up is… when other peoples money is involved… I’ve become more risk averse. If it’s not amazing, but is still great, I’m selling to other people.
I’m not in a super hurry, so I’m only going to close on the right deals for me.
It would have to be 30-40 space, and needs to be a double digit cap rate in one year. Preferably 20+ cap rate. And that sounds like a lot, but they are out there.
For me personally, every deal needs to be a home run! And that’s when I’ll be comfortable putting other people’s money to work.
You need to have such a high margin that when things go wrong (which they will) we will still get a strong return.
As an investor, I invest with groups like Ryan Gibson.
We just interviewed Tim Shoultz with Smart Cap and they say that they have a lot of nights of lost sleep because of using other peoples money.
I’m looking for somebody, I don’t care what the property is, but I’m investing in the team and the people. People that have a great due diligence process, that’s what makes me comfortable.
That’s my little insider tip. The trust on the due diligence side.
It has to be that. We have a HUGE due diligence check list. When I had to raise a lot of money for a project… it came very easy because of my process.
It’s not a game, and you’re using other’s hard earned money.
What does a week look like for you? You are the guy, you’re a special character who’s striving for success.
Umm, I would say there’s consistency among the things that are higher and best use towards income producing activists. Like among looking for new mobile home parks.
Let’s go through that. What do you do?
How do you find more deals…
It’s a mix of things. For us we are buying in WA. But we have a list of 50k parks of all of them in the country. I invested in the Frank and Dave mobile home boot camp. They are the 5th largest.
So we have raw data of addresses.
We have 2 VA’s that take addresses and skip trace them to get annual reports and governors.
Then my partners do cold calls of about 100 a week, so it’s not that intensive. It takes some marketing outreach.
All of our deals have come from cold calls.
Cold calling business owners is one thing… cold calling single family home owners is a different beast. It’s a big of an uphill battle. But with a business owner they aren’t confused, they know you’re calling for business.
It’s takes about 400 cold calls for us to get a deal/contract.
So if we need another deal this month… we know what we need to do.
Do you leave messages? I have a voicemail recording that my assistant goes through on the weekends.
It’s amazing that people will call back when they are ready.
Yes, we definitely leave voicemails, and we’ve started doing ringless voicemail.
You’ll learn that it’s a relationship thing, so they aren’t going to be as responsive to a postcard.
Do you text at all?
Yes, I had an intern build a custom java script that opens iMessage on my computer and replicates human keystrokes. It’s cool!
You do have to be aware of the laws and regulations around all of this stuff.
We will employ every marketing strategy that we can.
And you have to be as respectful as you can.
See if they’ve considered selling
What is ave space rent? You typically only own the land.
How many spaces there are?
How many are occupied?
We are trying to get to a net operating income.
We apply an operating expense ratio.
We then end up with an estimated net operating income that does not exclude principle on the mortgage or capital expenditures.
Then we can find the cap rate and know if it’s right for us.
If we can find a 10 cap+ I would jump on that and send the docs over!
Let’s talk about the last year real quick. I think that you wanted to own 100 pads. What did you accomplish in the last year? And proudest of…
This was a little over a year ago… but being able to take care of my mom. She sacrificed everything for us. I looked at her 401k and analyzed her finances and it was laughable for someone 60 years old. So I bought at 3 unit, rented the bottom 2 units and put her in the top unit rent free.
I also hit a million dollar net worth before turning 30 years old. Which actually wasn’t that hard.
What projects go you there?
Single and multi family value add in Seattle. Just the property that I put my mom in… I have over 300k of equity in.
My lifestyle hasn’t changed at all. My biggest expense is travel. I’m going to 9 new countries this year.
What do you think is your super power? People see you and respect you.
I think I’m good at coordinating people and getting them excited about around one goal. I’m also not worried about what people think.
Who are your mentors local or national?
I think that everyone has fear, but I look at you like you’ll take on anything. You’ll study it, get to know it, and get it done. I think that is your super power.
Augie and guys that are a few steps ahead of me. I listen to everyone, but don’t take advice from everyone.
The guys that are in my inner circle.
Everyone has fear and there’s risk involved.
Exactly! I believe that community equals confidence. That’s my favorite term right now. Having an inner circle or community that can help you answer questions can give you courage to take action.
Tell us about the Master Class that you have going on?
Step One to Wealth. Info, strategy, guidance, contracts. Everything that you could need to know. 2 days of intensive info!
I get a lot of people that ask me to look at deals, but I could spend all of my time doing that. So I wanted to give back to people in a more
$1895 for 2 month class. We had 6 properties purchased by first 13 students in the first 2 month class.
You can go hustle and work for someone or you can sign up for a class like this.
It’s a fast track!
It’s putting yourself in the circle of being around people that want to hustle. Just being in a room like this is so valuable.
Surrounding yourself with people that are sharing the fast track is so valuable.
You are the 5 people that you spend the most time with. People don’t want to feel like the newbie, but that’s exactly what I want to be. Being the small fish in the big pond is exactly where you/I want to be. You’ll learn the most by far!
How often do you do the Master Class?
I’m doing it twice a year and the next one is (2 day) are march 28-29. I have room for 5-6 more right now.
We also do bi weekly webinars and walk through on a property that will bring in 20k per month.
Lots of great opportunities!
If you are working on your first deal or looking to scale up, this is right for you.
We focus on residential primarily. I’ll also cover in brief some of the commercial assets that I’ve worked on.
I also bring in a few professional that are killing it in the area. So you get the best of both worlds!
So March of 2020. What’s the goal for 2020?
10k passive income per month. And I should shortly be over that. And I’m looking for the person mobile home park. We are working on a park in Oregon right now that should take care of that.
And we’ll see you this summer at the PNW Big Badass Real Estate Wealth Expo.
I will be there!
Where can people sign up for the master class?
Actually, connect with me via Facebook and find group WAREI. I do a lot of business on Facebook messenger.
Actually I would like to have a local collective genius.
Let’s do it! I’ve actually created a small mastermind ,but I’d love to do that on another topic.