You only have a reason to fear Real Estate Investing if you lack the proper tools and knowledge. A common fear is not having enough time or money to finish the project and turn a profit. And where boatloads of money are on the line, no one wants to lose. But REI doesn’t have to be complicated. Basically, you sell properties for a higher price than the cost of building or purchasing it. That’s a no-brainer! Another basic idea in REI is to minimize the time your capital is at risk. You want to sell the property before the costs of owning it catches up to the price you can sell it for. And this is where it can (but not necessarily) tricky. Why tricky? Because for any miscalculations, you run the risk of raising the construction/rehab time or expenses or both. Pros might not be prone to these types of miscalculations but they are prone to compromising profits in favor of selling quickly. Not a bad idea BUT also not the best one. In light of these, it’d be great if there was a way for both beginners and pros to get over their fears in investing, avoid these miscalculations AND maximize your profits in REI… Oh WAIT! There IS a way and Matt Hedstrom’s about to blow your mind with it! Matt is a licensed contractor with over 20 years of real estate and contracting experience. His unique knowledge, contacts, and experience are all put to work helping him find the best solution for his clients. He helps clients with rehabbing residential homes for purchase or rent to own, acquisitions and sales of residential and commercial investment property, and managing large scale commercial projects. What ultimately separates Matt from other pros is that he has found a way to get in and out of a house quickly, accurately determine the cost to rehab, and generate an offer to the seller, before the investor leaves the house. With the proper tools and strategies that Matt has to share, you never have to sacrifice profits for speed. More importantly, you never have a reason to fear investing! Matt believes that everyone should have a shot at creating generational wealth and enjoying the benefits of financial freedom, which can all be achieved by knowing how to rehab properties the right way! What’s Matt’s secret to rehabbing? How SHOULD you search and market properties? What’s the BEST way to FUND DEALS? Check this out to learn more from the source and grab FREE tools and other resources for REI: Website: matthewhedstrom.com Tune in to learn more about the hottest and most relevant information on real estate investing! Thank you all for listening and I will see you on the next episode. When you are ready head on over to https://billyalvaro.com or go grab your tools to help you at https://billyssecrets.com
You only have a reason to fear Real Estate Investing if you lack the proper tools and knowledge.
A common fear is not having enough time or money to finish the project and turn a profit.
And where boatloads of money are on the line, no one wants to lose.
But REI doesn’t have to be complicated. Basically, you sell properties for a higher price than the cost of building or purchasing it. That’s a no-brainer!
Another basic idea in REI is to minimize the time your capital is at risk. You want to sell the property before the costs of owning it catches up to the price you can sell it for. And this is where it can (but not necessarily) tricky.
Why tricky? Because for any miscalculations, you run the risk of raising the construction/rehab time or expenses or both.
Pros might not be prone to these types of miscalculations but they are prone to compromising profits in favor of selling quickly. Not a bad idea BUT also not the best one.
In light of these, it’d be great if there was a way for both beginners and pros to get over their fears in investing, avoid these miscalculations AND maximize your profits in REI…
Oh WAIT! There IS a way and Matt Hedstrom’s about to blow your mind with it!
Matt is a licensed contractor with over 20 years of real estate and contracting experience. His unique knowledge, contacts, and experience are all put to work helping him find the best solution for his clients. He helps clients with rehabbing residential homes for purchase or rent to own, acquisitions and sales of residential and commercial investment property, and managing large scale commercial projects.
What ultimately separates Matt from other pros is that he has found a way to get in and out of a house quickly, accurately determine the cost to rehab, and generate an offer to the seller, before the investor leaves the house.
With the proper tools and strategies that Matt has to share, you never have to sacrifice profits for speed. More importantly, you never have a reason to fear investing!
Matt believes that everyone should have a shot at creating generational wealth and enjoying the benefits of financial freedom, which can all be achieved by knowing how to rehab properties the right way!
What’s Matt’s secret to rehabbing? How SHOULD you search and market properties? What’s the BEST way to FUND DEALS?
Check this out to learn more from the source and grab FREE tools and other resources for REI:
Website: matthewhedstrom.com
Tune in to learn more about the hottest and most relevant information on real estate investing!
Thank you all for listening and I will see you on the next episode. When you are ready head on over to https://billyalvaro.com or go grab your tools to help you at https://billyssecrets.com
[00:00:00] BILLY: What's going on everybody. Welcome back to the episode of unstoppable REI wealth. This is episode 61, and I'm going to be recording the next four episodes from sunny, Puerto Rico cam wine, Puerto Rico here for a month. We have an Airbnb right on the beach. You're probably gonna hear the ocean behind me. The waves crashing as an interview. My next four guests. Next one coming up is I'm 61 is Matt Hedstrom. He is met him about four or five years ago in an, at an event Him and I are in the same mastermind called multipliers. And he is just a one of those guys. Who's a giver he's giving a lot of his time and money away to those in need and other countries. Uh, he's also has his hands in multiple businesses, uh, hard money lending, short sales. He's been a full-time general contractor for 20 years, real estate investor for the last 10. And over the last 10, 15 years, he had certain struggles. He was going through to really spit out quick detailed rehab analysis for all the short sales he was doing. Back in the day And he came up with a program called [00:01:00] the rehab estimator pro. And so this tool, if you're in as a rehabber, if you're a real estate fix and flipper, and you're having a challenge, figuring out what your rehab costs are going to be, you're gonna not want to go. You're not going to want to miss this episode. He goes into detail of how this tool, no matter where you are, California, Wisconsin, down in Florida, New York, and bumfuck Idaho, wherever you're at this time. Save you time, energy and money. And it comes with, from what he says, really accurate data that you could then print out and give to your general contractor to start doing these, these deals. So you're not going to want to miss it tune in, listen, and I'm sorry if the quality is not there, the video might not be that good because I am recording from the beach. It's a little, uh, windy, but it is what it is. We just keep pressing forward hope you guys enjoy .
[00:01:48] Welcome to unstoppable real estate investing wealth. My name is Billy Alvaro, AKA the unstoppable VA former billion dollar mortgage banker gone bankrupt turned professional real estate investor [00:02:00] where each week you'll learn the tools, strategies, systems, and secrets myself and other highly successful real estate investing entrepreneurs use to start, grow and scale [00:01:00] their businesses, creating massive profits and how you can too. And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started.
[00:02:27] What is going on everybody? Welcome back to another episode of unstoppable REI wealth. I'm your host, the unstoppable BA Billy Alvero. And I'm here today with a friend of mine, Matt Hedstrom, and I'm recording from beautiful. Puerto Rico, Cam why Puerto Rico here for a month? So a full disclosure, my video is going to be a little shotty. My background is going to be beautiful. And I'm here with the handsome, Mr. Matt, Matt, how you doing buddy?
[00:02:52] MATT: Yee Haw love It man. I do not get to choose my background like that today. So I got an office grid tiles [00:03:00] behind me. I have this scrape frost off my window this morning, bro. Oh God. Yeah. So I'm in the hoodie and a. Freezing my butt off this morning.
[00:03:10] BILLY: I am not jealous with the way you look right now with that hoodie on, man. I'm outside in the t-shirt shorts, no shoes with rocks in the background.
[00:03:18] MATT: Love it, man. Just, uh, just
[00:03:20] BILLY: so listen. I met Matt. Uh, I belong to multiple masterminds and I I'm in one called the multipliers and Matt and I, I think I met you two years ago. I miss last year because I was in here in Puerto Rico, but mats listen, solid dude. This past year. You're up there. You raised, we raised a lot of money from the multipliers. What are your things that you do overseas? Why don't you talk about that real quick of what you're giving is because you're heavily into like helping out
[00:03:45] MATT: yeah, man. I know that I appreciate it. This is a, this is something that we, we raised a lot of money just right there for a, uh, a trade school that it's being built in San Pedro Sula, Honduras. And, uh, this is to get young men [00:04:00] into this school to teach them work ethic and actually train them on machines that we're bringing in from some of the international manufacturers that are there in San Pedro and, uh, man, this does so many things in the community. The unemployment rate is ridiculous. So it gives young men hope it gives them a future. It creates legacy. It keeps, it keeps husbands and fathers in their homes. It stops girls from being trafficked because their father is present like so many things, bro, just by bringing that training into the committee. Whether it's high crime and unemployment. So, and this is part of my, now we did eight trips last year, international, where we're building communities like this all over the world. So, uh, that's,
[00:04:39] BILLY: when's your next trip? Your next trip is when in China,
[00:04:41] MATT: I'm going to Turkey in April during the month. And then. You know, that's already kind of getting to be a, a tricky situation. And then I've got a well Moldova of all places right next to Ukraine.
[00:04:54] BILLY: God, When you doing that one?
[00:04:56] MATT: So that's in October, so I'm really hoping things settled down and [00:05:00] this whole war businessman, but we've got refugees. There's already 150 to 200,000 refugees coming into Moldova
[00:05:06] BILLY:
[00:05:06] yeah. I saw it last night on Fox. I was watching it's it's heartbreaking. What the hell is going on over there, man. They should really take Putin and just hang that fuck.
[00:05:14] MATT: Yeah, man. Just string them up in the street. I mean, that's what it takes. So
[00:05:19] BILLY: look, I love the fact that you are a giver mat, you know, you have that personality, you, you actually do what you say, say what you're going to do. You come from passion, you come from the heart and, uh, you, and I don't know each other on a deep level, I'm hoping to get to know you a lot deeper after this podcast and moving forward. But just from what I do know about you, you're, you're definitely a solid you would being brothers. So now with that being said, love the fact that you do what you do, I want to get into your background with real estate. So give us like a brief summary of, cause I know you started off, I think as a general contract and then you get into rehabbing and then you develop software. Take us through that whole thing.
[00:05:53] MATT: Yeah, man, I'll be quick. It's a story. That's somewhat typical with man. I made a big move in my life a while [00:06:00] ago when I, when I realized that, you know, four kids into my, a young marriage at, you know, 19 years old, we started and, uh, realized I was a, a reflection point where I didn't have many of those times because it was always the hustle. Uh, that I was man, I was, I was getting up off to work, man, running my own business before any of my kids got out of bed for school and I'm getting home after they're already back in bed and not man, that was just breaking my heart man, killing me. So I made a move over to move from Minnesota to Wisconsin and take the only job I've ever had in my life, where I was going to be groomed to be the president of that. So we made a move. moved our young kids and that was in 2007 ish, eight ish. You know, so we all know what happened. Then I went back to general contracting and, uh, ended up visiting a REIA buying my first course. And you know, the rest is history. As far as finding niches that were unfulfilled, like bringing all of my 25 years of general contracting experience to some [00:07:00] software for estimating. And since then I've built, you know, short-sale business, a development company, a funding business. So all of these places that we kind of end up with different businesses that are all centric to real estate, you know, that was, that was my path that brought me to this place today.
[00:07:16] BILLY: And this has been how many years you've been doing that now?
[00:07:18] MATT: Really? I would say right around that 10 year mark as a full-time investor.
[00:07:22] BILLY: Yeah. And your focus, Matt is fixing flip buy and hold building ground up all the above.
[00:07:28] MATT: Yeah. I'm, I'm a true, like I'll never not have flipped projects going, just because really with my background in the system will have, I can do it in my sleep kind of a thing. And so that keeps me credible relevant, you know, all of those things and it's in, it's easy for me. And I like to bring that, you know, to be able to show people, just, you know, cause it's, there's so much fear around that in, around jumping in and. So that fix and flip business will always be part of who I am. My identity in that, even though I don't swing a hammer or visit a [00:08:00] job site. Right. But, uh, and now we're starting to build new, which is kicking doors open. That's really new for me because I'm now a developer and I've never done any developing. And so we've got quite a few projects underway now, which is really exciting
[00:08:14] BILLY: before we get into the rehab estimate approach is let's go into your cause. I'm really interested. Cause we opened up a construction company about a year ago. So if you're a company you have now on the real estate investment side, or do you have, obviously you're a general contractor, you have your license. If you have your own team of people that are working for the contracting company, or do you pay per contract and sub everything out.
[00:08:35] MATT: So everything typically is built as a contractor with subcontractors, right? Most will never achieve. If you're going to run a construction business, Well, then it does make sense. And you, you need to understand just like you, just like you evaluate any property, you need to evaluate your business because you're never going to stay in the middle and survive. Okay. You either go big or you stay small [00:09:00] with just subcontractors because you're 10 99 in them and you're, you're losing all of that pay on social security. You've got to look at payroll. So for me, it makes sense right now for us to have employees and about, you know, we probably have right around 90 to a hundred subcontractors that well, and the, the, the point of that is. I have five plumbers that know us well and that I can call. I have, you know, how many excavation guys in, you know, sewer guys and you just have to do that because of the times we're in with everybody being so busy, you have to keep those relationships. But for us, it makes sense to have employees at this point. But for most, you better look at you better. Look at that real hard before you start adding payroll.
[00:09:45] BILLY: So take us through, um, on the employee, side your core group how many do you have and then what are they? What's their roles in the business on your construction side.
[00:09:53] MATT: Okay. Well, first I think something that you can never neglect before, you're going to hire a framer. [00:10:00] Full-time that, you know, ma that's when you will come in and have the guy that can do the pickup work, he can run crews. You can almost be a project manager slash framer, maybe do some finished carpentry. If you don't have your office figured out, do not lie to yourself and think that you're going to run everything. Okay. From your position as a, like, you used a good word. I call them paper GCs, right? Yep. You're a briefcase contractor. Okay. But you're not out there doing the work, but you're running the show. If you don't have office management in place. And that could be one person because that's all I have in the office. I do have several virtual assistants to assist, you know, with project work. But if somebody is not running your own. Doing the invoicing, the change orders, running all the vendors because we operate mostly on a cost plus basis. You know, we don't lose ever in that space. If you think you're going to run your business and run your office and QuickBooks and everything else, you're, you're again, you're lying to yourself. So [00:11:00] you need to start there for your systems, your processes, your dailies, every, you know, every day. And then you can start adding what we have as management in the field. So we have several employees that we can send anywhere we want every day and break them up and move them around. And we control where they go. Okay. So outside of that, we can bring in extra help, but that core is very small as far as employees go and it works for us. Okay. So, but that took, that took several years to build.
[00:11:31] BILLY: So you're doing rehabs for yourself, but you're also doing retail work is what I'm hearing?
[00:11:35] MATT: So it's a very, kind of a niche. We will select maybe two at the most per year. That we will do. Like we do very well. I have a strong background in commercial. And so we'll do build outs for like, we're doing a huge dental space right now. Okay. Got it. Okay. You know, those, we're doing fire restoration where we got to studs and we. In that space because it's all cost plus [00:12:00] insurance money. And it's also people that we want to work with because being in the retail world is a very different thing. Okay. You don't ever want to go there unless you have experience in it. Okay.
[00:12:11] BILLY: Yeah. My girl, Nicole, who is my girlfriend, she's also my business partner on the construction side. She's going like full steam ahead on doing retail work. And I told her I want personally I want nothing to do with it because it's not my thing. Like, I don't want it to speak about bathrooms and who scratched my wall, but she she's been doing it now for about a year, Matt and she's really, she's crushing it high in. I was getting the bids in she's orchestrating, but like you said, she has a back office. That's supporting her with the paperwork. She has a really strong PM of the front end that's managing. So she's really just going in and designing and setting up. And then we're to your point where paper contracting everything we have, we had last year five or six employees, and I found that it was just full-time babysitting. Correct. So we went from that model over to. Hire the [00:13:00] PMs, make sure we have our numbers dialed in, come up with a cost plus, and then just go to work. And it's working both on the rehab side and on the retail side.
[00:13:08] MATT: That's great, man. That's a great model. And you, and you learned it the hard way too, like everybody does. You gotta figure out what works.
[00:13:16] BILLY: It's tough. It's probably. I've built multiple businesses. And by far the construction side of the business, to start that and grow it as a real construction company, not just as a project management type company, it was tough, extremely difficult.
[00:13:30] MATT: Yup. Yup. And you know what? She is really good at what she does. I know that. And, and it's, and it's something that as people understand the product that you're putting out, you earn the right to sit down with people and say, you know what? I don't think we're the right company. Yeah on some, you know, you create this special niche because
[00:13:49] BILLY: she just did that with this. Yes. She just did that with somebody. She's just like, it's not for me. We're going to have to pass on this one. Yep. So, so take me through, on your, on your rehab side. So you have, how many project managers [00:14:00] do you have in your construction company
[00:14:01] MATT: so I have several, we have one main guy, so I have one guy that oversees everything and he's also basically mirrors who I am in that space. Okay. But that's all he's ever done. Um, and then under that I, another, uh, guy that we, we give a company vehicle to supply all the tools, you know, that kind of thing, because he is a true employee as well, that used to run usually around 20 projects at a time, new construction back in the day. Finding these guys is key because you either hire the best or you create the best, right? Yup. Yup. And so you don't have time to create the best and most spaces, so you need to hire the best and pay them well. And so that guy, he got completely burnt out. He doesn't want to run 20 jobs sites and run a hundred subs under him as framers. He just wants somebody to tell him where to go and what to do every day, because he's in his last phase. And that's a perfect guy that we put a second ago. And then we have [00:15:00] two more guys that can fulfill that role, but they're also in the field either framing or doing trim carpentry or running a project as well
[00:15:08] BILLY: got it. So there like lead carpenters onsite, correct. Running. Take me through like your process flow. You get a new deal that you're going to renovate on your rehab side of the. Just take me through what your process is to get that property scoped out materials ordered, measured, and then put into the pipeline to get started. Like what does that look like on your end?
[00:15:28] MATT: Yeah, no man. That's, that's a great question because right now is a, is a much trickier situation. So, if you don't have a model down, don't take on more than one project, you know, if right now, if you're starting out, because I'll give you one, just put under contract last week and, uh, came in, you know, 40,000 below, even what they were asking and they actually accepted it right away, just because of the creative ways that I also added to the offer to say, Hey look, all I know you're looking for a house you want to. [00:16:00] We're going to lease your house back to you for up to six months. So you can find another one and actually not sign a box that says contingency on it to sell you. Because you've got an offer. So we're going to give you some perks here, but since then, now that we have that contract and we know we're moving forward to close, I already have to have my window guy go out there and, and order all the windows. Okay. The man office, manager's already putting together our purchase sheet, which on the front end, there's a closing on the back. There's a closing. In the meantime, you're filling up those folders on the front end. You need to get a dumpster on. You need to get any permits you need going, you need to get all your materials that you know are going to be 12 to 14 to 16 weeks out. Okay.
[00:16:41] BILLY: Okay. Yeah. The lead time and materials escape.
[00:16:43] MATT: Right? So that means we're already getting our flooring ordered. We're getting our paint paint as a problem in areas, right. We got it's crazy. We got our paint order. We got our window order so that my guys won't even see the house until they step foot in it the first day. [00:17:00] Okay. And one is, um,
[00:17:01] BILLY: you have somebody going out there and doing measurements, like, is that your project manager? Is it a different person in your business?
[00:17:06] MATT: No, I'll send, if it's, I'm not going to be responsible nor is my staff going to be responsible to measure windows because if he screws something up, it's on him. So he has to go. And measure everything. Okay. So we'll put a lockbox on and put all of our subs and communication. So part of that process is dialing in which subs are going to be on the job, which ones need access to get into the house as far as the lockbox. And then making sure that, Hey, like I said before, dumpster utilities get switched over any permits, get pulled first day . We're on the job we're in demo. And I got a list of framing materials coming from that PM so that the lumberyard can deliver that. And so you're going through those systematic processes.
[00:17:49] BILLY: So through this whole process, if you be a general contractor over the years, um, I know you came up with a tool, a really useful tool for guys that are in our business on the [00:18:00] real estate investment side that are contractors that don't know how to go out and do that side of the business. Talk about the rehab estimator pro that you've created. When did you create it? Why did you create it and what does it actually do?
[00:18:11] MATT: Okay. Yeah, man. I love it. Thank you. Uh, bringing that up. That's a great question, even, you know why, because this was something that I created for myself because one of my core businesses is short sale negotiation and, uh, we've never stopped. That was the first course I ever bought. It's still my, you know, that's what feeds our flip business though. Short sales still to this day. And, uh, I realized with that this BPOs where you're meeting. Typically another fellow broker that, you know, in town that is the bank is hiring to come in and give a dirty $50 appraisal. Right. And that's the best way we can describe that. You remember back in the day, bro, when they would these, if you, if you ever met these BPOs dude, they would literally turn the camera on their phone and run through the house. Cause they were doing 10 to 12 of them a day. [00:19:00] Okay.
[00:19:00] BILLY: No time to breathe, no time to eat.
[00:19:03] MATT: . I remember one, I came in, there was this lady in there and she's carrying her baby in one arm with her phone in the other. And all she does is takes a picture of the address and then runs through the house, takes pictures and runs back out to her car. Okay, unbelievable. You need to put something in their hand that says, Hey, by the way, here's the comps I came up with to justify my offer and here's my scope of repairs. Okay. And this is a full scope with itemized pricing on it. And I needed to come up with that, that fast. Okay. Any house you walk through, I need to get a quote that is legitimate. That is a take-down number that I can trust and everybody else can be. Of all the repairs that are itemized correctly and we can go, we can literally make an offer based on this. Right out of the gate, because that was why it was great. It was because of that short-sale business. But then people started hearing about it and that's when I just went national with it. But real quick, you know, this more than anybody, I mean, this is such an [00:20:00] easy platform to teach on, but it's, there's such a hole in the business. Still. You have two things you can never screw up in any deal. Okay. There's all kinds of things that are happening, right. But if you screw up your Comps your ARV, as we refer to it, or you screw up your repair costs, your deal goes down. Fast right fast.
[00:20:19] BILLY: Those are two of the key drivers and a lot of guys overestimate the value and underestimate what the rehab costs are going to be. And they come in and losing 10, 15, $30,000. It's a pain in the ass
[00:20:28] MATT: you can't do it. So we have one platform that we use that we trust nationally, any bank, or, you know, if you're going for a refi, you're going for a purchase. The MLS is the only standard by which appraisals are done and comps are created. We can throw in all kinds of other stuff, like, you know, the appraiser, the bank is not going to accept a Redfin or Zillow or any of that stuff. Right. It's MLS. So you can teach anybody how to do that in a weekend course. Right? How do you relate repair costs then when all you've [00:21:00] done is you've sat through some seminar or you've gone to some bootcamp. How are you going to teach somebody repair costs that they have no fear about submitting getting a client? And then putting people into place to get it done for that amount. There's no basis. There's no standard in the industry. And so that's what we've created is something that everyone can trust. Just like the MLS. We have lenders now all over the country that are saying, sorry, if you're not using our EAP, I'm not going to trust your numbers that are coming in because that's the base. Yeah. So,
[00:21:33] BILLY: so let's dive in a little bit deeper now. So your, this software, obviously it's for rehab rehabbers is trying to get their numbers dialed in. How does the system work? If there's so many different variables on cost per foot, each contract and charges is different. Like how do you come up with numbers that are going to be working in California versus Wisconsin versus New York versus, you know, bumfuck Idaho. I mean, everybody, everybody has their own [00:22:00] numbers. Like how does that work?
[00:22:01] MATT: So, this is what I've discovered, man. Cause this is the number one. Objection that comes up that you've come up with on your own because you and I didn't talk about this before, so love it. So this is what I've found, traveling all over the country and being a part of many mastermind groups. I think you and I first. Uh, we didn't really touch base too much with 'em was speaker training was Shawn and uh
[00:22:22] BILLY: that's right. Holy shit. That's right. Totally forgot about that one.
[00:22:26] MATT: That was it. That's when I that's, when I was like, oh man, I need to know this guy more like, this is a great guy.
[00:22:30] BILLY: Yes holy shit. That was like three, four years ago.
[00:22:33] MATT: Yup. Yup. That was great, man. I think maybe. I was counting the F bombs in the first statement you ever made. All right. So
[00:22:48] BILLY: oh man I'm known for F bombs.
[00:22:50] MATT: Uh, I love it, man. So it's uh, so the first thing that comes in, I have discovered by, by dealing with, you know, going to job sites and talking to investors all over the [00:23:00] country, this is what it comes down to. We all have extremely similar numbers. Across the country, like it is unbelievable. And what I discovered, I look at it this way. Look, I can't paint in San Diego is the same, technically let's, let's not deal with the taxes right now in California, but a can of paint. If it's 40, 50 bucks at Lowe's in, in San Diego. And I, then I come to. Idaho, right. It's the same cost and I'm not paying my painter $40,000 a year in Idaho and $150,000 a year in California. We're paying them technically the same amount. It's just, we were building a 10,000 square foot, you know, on a rehab side versus a 1500 square foot. Right. The house is different, but the numbers are so close that we use an or, and now again, remember this is a take-down number okay. I can't go pay $75,000 for paint on a house. Nobody can ever make that deal work. So we use numbers that we know that we have to give to our subs to say, this is what you [00:24:00] need to do it for. Right. Got it. And that's that take down number now? I do have multipliers for every place in the country, but I don't want you messing with those numbers yet and hitting that multiplier until you test the system to see if it works in your area and how you just need to tweak it a little bit so it's social proof all over the country, man, that it works right now.
[00:24:20] BILLY: That's amazing, bro. So, so walk me through somebody. Are they going to utilize your software onsite or are they going to take measurements onsite and then go back to the office and plug the numbers in at the office with a rehab estimate here? What does that look like?
[00:24:33] MATT: Great question. Because this is what, this is the goal of it. Okay. You just mentioned measure. Okay. The software is designed as a checkbox system based on the input that comes automatically because we pay for the data of the front on the front end. We actually do do run comps and pull your property from county. Okay. And then once that square footage and everything is in there, it's a checkbox system. I designed the system so that you could send your office manager to the site. Okay. [00:25:00] And check the boxes of what needs to be done based on a visual that you're seeing. Don't look over this. Here's your checklist. Make sure you do exterior, interior and mechanicals. Okay. Check the boxes. And you automatically have a number. Now, the beauty of. As what you said earlier, when I bring, I have a tablet iPad in this case with a pen, when I bring this okay. Into a seller appointment and I'm actually using it in front of them, it is an unbelievable tool, man, because I'll ask right away. Hey, it's totally fine for you to answer this because I know the game. How many other investors have you had out here looking at this. Okay. Three. Great. Let me guess you haven't even received offers from two of them cause they never even got back to you. And let me guess the other guy came in with some stupid yellow pad and started writing things down and gave you a number. Right? Well, I use software that tells me exactly where I have to be at on this house. And these numbers don't lie. Everything I've done has been put into this software. And so I'm giving you something that's real-time and I'm using it in front of you. [00:26:00] And what happens? I put the tool in their hand with the. And they start checking the boxes and they start filling out their own repair list, bro. So
[00:26:10] BILLY: that's insane.
[00:26:13] MATT: They come to the table and they're like, you're right. It is going to take $57,000 to fix this house up. I thought I could do it for 20, but you're right. You have the system that tells me this is what it's gonna take so
[00:26:26] BILLY: that's unreal. So you're basically saying you can take this, give it to your acquisitions manager who has absolutely zero idea of renovating check a few boxes, then take that, compare it to what you actually bids are. If you have to do adjustments, cause you said there's an adjustment area, a multiplier. Yup. And then that's it. You're off to the races running
[00:26:44] MATT: that's it. It's also going to spit out an offer with those numbers. So you're going to have a cash offer right there. If your acquisition manager is trained to sit there and not leave without a contract. Okay. So instead of the guy who says, you know, let me go work the [00:27:00] numbers and I'll get back to you. You're actually at the kitchen table because here's another little thing, man. Nobody else is doing this in the business. So tell me how many people will actually do this. Very. I carry a wireless and Bluetooth printer with me and my backpack. Oh shit. You print everything right there at smart nude. I'm in the kitchen and I'm already printing documents on the kitchen table for them to sign, smart bro. There's no reason to leave without, you know what I mean?
[00:27:27] BILLY: What is some of the other, like, uh, like benefits or like things tools inside the system that it does. So it calculates, it calculates the repair costs. It does the offer generator. Yeah. Uh, three offer generator. Like there's somebody tools out there. It's like, here's the cash. Here's the subject to the, it does that.
[00:27:43] MATT: It does that too. So, and we're enhancing that all the time. So it is going to give you, you know, seller finance, oppor offers it's it also has a full rental calculation section in it. And also if you train your people, if you have a bunch of agents under your team, it'll actually give them a net sheet as well [00:28:00] to say, Hey, well, if you're going to hire an agent, look how close we're going to come to the actual number with a cash offer this. Oh, now those are for more advanced users that get to know the system. But here's, here's another beautiful point because I'm glad you asked that question because we have all of these things. The core of it is such an awesome tool, but then it has all these other things like a rental calculator as well. Say you check the box for interior painting. Okay. Now that's going to cover everything, but it's going to print out. Yes. Huge scope of work. It's going to detail about a paragraph long, what that paint includes. Okay. Exactly. Your scope of work will be completely printed out right there in the scope. So you're actually, you
[00:28:40] BILLY: can give to your contractors,
[00:28:42] MATT: you hand it right to your contractor and it'll, it'll, it'll take all the numbers right up. So now you have a
[00:28:47] You're
[00:28:47] BILLY: making making it so easy.Bro, you make it too easy.
[00:28:49] MATT: Yes. Because that's the fear I found. I've found that so many people will sit there and spin for a year. You know? Well, I haven't, I I've been, I've been, I got [00:29:00] comps down, man. I've nailed it, but I'm so scared to deliver that offer because what if my repair costs are wrong? Okay. We got to eliminate the fear,
[00:29:08] BILLY: walk me through because there's different levels of rehab and I'm not talking about the level of work that you're going to do. Like a high end. I'm talking about a full-blown renovation. Full gut medium gut a lipstick. How do you calculate that in your rehab costs? Because like, I know my guys, we have a lot of houses, probably 50% or greater where it's a full gut renovation because we're dealing with like shitholes that haven't been worked on in 50 years. There's cat piss a little bit of place garbage in the house. And then you have the other end of the spectrum where the houses are just dated, but they have great. And so how does your rehab analyze or what is the data inputs? Did you have that inputs that will take those 3, 4, 5, 6 different situations and allow the user to say, okay, this is a full gut. This is a lipstick. Take me through that.
[00:29:54] MATT: Yep. This is how I kinda explained from going from, you know, look, man, you know, if we're coming into that, [00:30:00] Because these are happening right now, especially with the amount of short sales or foreclosure pre-foreclosures that are happening. If you come in and you don't need to do paint or flooring, well, then you just need to stick a sign in the yard, right. And put it back up on the market. So as a minimum, when you're coming in, there's a full one-page list of exterior, full one-page list of interior and a full one page list of mechanicals. There's a huge section in the back end that is going to require you to put in measurements and linear footage, square footage that, but I don't want new users to touch that yet. So if you're a couple of years just going, look, we're going to clean up the landscaping quick on the outside. We're going to hit the paint, the flooring, and we're going to stage it. Okay. You can just click those buttons and you're done on the other extreme. If you're coming in and we do have a full gut button that you just hit, and that's a number that you need to know, uh, to compare. Yeah, as a whole, because it's going to give you one big number. Okay. And it's going to include everything, including the exterior. So, so [00:31:00] we don't have anything. That's a quick like, Hey, here's lipstick hit this button, no click the right buttons, paint flooring, throw a new exterior door on and done, you know, but that full gut, by all warned people this way, you have the experience to do that. I have the experience to do that. Don't kid yourself again, quit lying to yourself. If you think you're going to get in and out of a house for less than 75 to a hundred grand on a full gut. Okay. It's never going to happen, never going to happen at all. If you lie to yourself and say, you know, I could value engineer this and get it done for 50 grand, you've already lost. Yeah. Not going to happen. Nope. And especially with the price, look at your, my electrician alone. I have to use several electricians right now because, uh, you know, based on availability. We did a full gut last year. And my electrical was about 13, eight. It just came in this year at 27,004. Yes.
[00:31:54] BILLY: Holy How many square feet was the house?
[00:31:56] MATT: It was a big house. It's over 3000 square feet. [00:32:00] But the fact of the matter remains. When you're getting into a gut to stud situation, and it's all new material, this is not the same as an electrician coming in and replacing your fixtures, your outlets, you know, your switches to white decor or whatever. This is somebody coming in and run a new wire that has gone way way up okay.
[00:32:21] BILLY: Yeah, I know our costs are full guys. We're trying to stay away from as many full guts as possible for that one reason. Just out of control. Say no, I'd rather wholesale the full guts. Let somebody else handle it. The ones where it's a medium rehab or lipstick, or, you know, just to make it look pretty. We're killing those right now, but guts, man, we're making money on them, but our margins are a whole hell of a lot tighter. Even with the discounts we're buying It's still very tight.
[00:32:47] MATT: It is very tight. And then look at your opportunity costs too, because you're going to tie yourself up for six months with those projects. Versus we're able to turn things in three months with, with men and doing a light rehab [00:33:00] and doing a whole tale or whatever you want to call it and putting it back on the market because there's no inventory. Still,
[00:33:05] BILLY: no inventory, man we have right now, I'm just looking at. We use bill the trend there on our projects. We have 62 that are in the, in one phase or another. Wow. On the rehab side. So they're either being scoped out permitted, full blown in the, in the construction site or punch list. Yup. Yes, 62. And that's that includes 10 of them are retail. So it's really 52.
[00:33:26] MATT: Yup. No man. And that's, uh, you are running a huge business on that and you have to use software like Buildertrend co-construct is another one. Yeah. Um, Buildertrend purchased so there are sister companies and there's, you know, co-construct, isn't is a little more affordable. Buildertrend this for a guy that, you know, like us, that you're running full blown project management, and you have to see a Gantt chart of, of what, what trade is where, and, and who's coming up next
[00:33:54] BILLY: it was a game-changer for us. We were running everything off Excel spreadsheets and Google docs and it worked, [00:34:00] but it was overwhelming trying to have everything in one area who wasn't updating and who missed something. And you know, this, this bill, the trend we started in a year and a half ago, and it's been a freaking game changer for us or streamline. We're not even touching the surface yet. Like we're. Construction coach that we hired from California. Who's paying them an arm and a leg it's 600 grand a year, like, like not a small investment. And we meet with them every other Thursday. And we just constantly work on the construction side of the business, streamlining setting up the templates. We're getting into a point now where it's literally point and click. We don't have the construction cost piece. Like I think your software for our guys in the field is going to be key. So I'm definitely going to become a client after this whole. Let me ask, I don't want to bounce back and forth. I get like ADD and I go a little bit of places. No we don't. But getting off on your software. So is it, do you pay per seat? Is it per company? What is the licensing look like for your software
[00:34:59] MATT: [00:35:00] so man, it is, uh, it is the most affordable piece. Uh, basically what I call a tool in your belt. You know, you've got to have certain tools in your belt in order to run this business. Right? So whether or not it's a strategy on the front end, like a lease option or subject to, or a cash offer, those are all tools in your belt. Right? Well, it's the same thing. When it comes into like software like builder, Trent rep, you know, different product stream, different things. You have to be able to do this. So for people that are affiliated with us that say, Hey, I want to give this to people. We can get it down from, you'll see, 50 bucks a month online, down to 30 bucks. And that's unlimited properties, man. So we can get your users down to 30 bucks a month, which again, if you can't afford 30 bucks a month, you shouldn't be in this buisness okay.
[00:35:45] BILLY: Right And is that $30 per seat? Like if I have five acquisition managers, is it each one gonna have their own
[00:35:51] MATT: no, it depends on how you want to run your business. So we do have a more advanced platform, uh, that you have to talk to me about. Cause we build it for you where say [00:36:00] you have, you got your five acquisition guys and you don't want them to see each other's deals they're working on, but you need to be able to see. We'll do that up to 10 users for 99 bucks a month. And then you can have they're all separate, so they don't see each other. Otherwise, if you just did the 30 bucks a month and you didn't care who saw what you can give it all to them and you can load as many properties as you want. It's just that everyone will see everybody's properties
[00:36:24] BILLY: yeah, which I don't mind because we're working on Podio for now until we switch over to Salesforce and everybody has access to everybody else's shit. So, you know, it makes it more competitive too. Everybody sees what the hell the other guys doing when they see what the numbers are. And it's like, you know what the hell this guy is eight deals this month. I got two yeah. They're massing here. Yup. Matt. Yeah, this is good stuff. So I know, um, we're going to be putting the link to rehab estimator pro on our website, Billy alvaro.com and Billy secrets .com if anybody wants to get access to this. I mean, look, dude, it's 30 to $50 a month. It's the it's extremely affordable. I think you're under [00:37:00] pricing. To be honest with you.
[00:37:00] MATT: I mean, I am, I want everybody, to use it, man that's the goal
[00:37:05] BILLY: yeah. So it's a, it's going to be a good thing. So after this, I want you to send me a link so I can get myself signed up. I'm going to send it over to Adrian. Get her to sign us up I'm going to get one of the guys in the field to start training. Maybe one of my New Jersey guys. I want to do a whole video on a podcast on after I use your software for like 90 days. what My feedback is like, here's the good, here's where it needs to be tweaked. Here's where we're killing it. Here's where, you know, mad I need help. What does this mean? You know, type of thing, but we'll, we'll definitely get to leverage it. You've been really you've, you've offered a ton of information. How do people find you, uh, on. I know you're not really an internet guy with Facebook and shit. You've cut yourself off. I read that in your, uh, any information that you sent over, but what, how do they find you?
[00:37:48] MATT: Simple is Matthew Hedstrom. And it'll just show basically kind of a link tree to everything that I have to offer. We have a private funding academy to teach people how to find private money. We have a funding group [00:38:00] as well. We have the short sale business. Um, so that kind of stuff, you can find me, Matthew hedstrom.com and shoot me an email off of that off a contact us. And, uh, man, I love setting up calls. A lot of people get sparked because of the service work we do, uh, all over the world. And a lot of people will call and just ask about that, you know, cause they, they want to either get on a trip. We make it. Um, we want to learn more about the software or even how to run a business where I'm gone three to four months out of the year, you know, as a combined, how do you successfully run businesses that way? You know
[00:38:31] BILLY: it's amazing. Isn't it like when you have your stuff dialed in where you can just pick up and go and your business runs living
[00:38:37] MATT: You're in in Puerto Rico for what? A month
[00:38:39] BILLY: right now? Yeah, just hanging out.
[00:38:41] MATT: Yeah. How do you do that? Your businesses are still running, right?
[00:38:44] BILLY: Of course. Yep. Yeah, it's good stuff, bro. Listen, I appreciate you. I'm really looking to get to know you on a deeper level brother. You are a special human being, and I love the fact on how much you give back to people that really need it thank you for coming on, [00:39:00] bro.
[00:39:00] MATT: You got it, man. I really appreciate you having me. This was great.
[00:39:03] BILLY: Thanks bro.
[00:39:03] MATT: All right, man. Peace.
[00:39:06] BILLY: Thank you so much for listening to today's episode of unstoppable real estate investing wealth. My mission is to give you my listeners, the blueprint for success inside the secrets for starting growing and scaling. Real estate investing business, So you could experience and live unstoppable lifestyle. I've made it simple for you to catapult yourself to success. Go to Billys secrets dot com@thebillyssecrets.com. There you will find every single tool. Trick strategy system. And you used to make millions of dollars as real estate. Everything my team uses and my guest views all in one place for you to [00:36:00] tap into, you could start, grow and scale the real estate investment business. I really hope you implement what you're learning. I hope you utilize these tools, tips, tricks, strategies, and secrets, and [00:40:00] I hope to see you on the next episode god bless. Bye-bye.