He Stopped Buying Rentals To Do This.... | Dakota Bailey
Nov 23, 2024
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Dakota Bailey, a real estate investor and sales training coach, shares his journey from car sales to thriving in real estate. He recounts how he shifted from purchasing rentals to flipping properties, emphasizing the significance of building a team and refining marketing strategies. Dakota highlights innovative lead generation techniques and the lucrative potential of novation deals. They explore the importance of adapting to market changes and achieving personal growth through embracing challenges, all while striving for both financial success and personal fulfillment.
Dakota transitioned from buying rental properties to focusing on flipping and wholesaling after realizing the inefficiencies in cash flow.
Building a team was pivotal for Dakota, as hiring an assistant and defining roles significantly increased productivity and deal flow.
Innovative lead generation strategies, including the use of novation deals and new marketing technologies, allowed Dakota's business to capture more opportunities efficiently.
Deep dives
Transition to Real Estate Success
Dakota Bailey's journey into real estate took a significant turn when he decided to leave his car sales job to focus solely on real estate, responding to the pressures from his coach and the need for change. Initially, he engaged in purchasing low-cost rental properties, which he believed would yield a steady income by utilizing the BRRRR method. However, as he analyzed the cash flow and performance of his rentals over time, he discovered that the returns were marginal at best, prompting a reevaluation of his strategy. This realization led to a pivot towards wholesaling and flipping properties, laying the groundwork for his best performing year to date.
Building a Successful Team
The decision to hire an assistant marked a pivotal moment for Dakota as he began to assemble a team to enhance productivity and efficiency in his business. With a clear expectation set for his new acquisitions person to generate at least three deals per month, Dakota witnessed a rapid increase in deal flow right from the start. This initial success led to the establishment of a more structured backend to handle the growing number of properties and transactions, including roles like a transaction coordinator. As Dakota expanded his team, his ability to delegate allowed him to step back from day-to-day operations, enabling a significant scale-up in overall business performance.
Evolving Marketing Strategies
In the early stages, Dakota allocated a modest marketing budget of $3,000 to $5,000 per month focused primarily on direct mail and cold calling, which resulted in a steadier influx of leads. As the landscape shifted and competition grew, Dakota began exploring additional lead generation methods, including the adoption of new marketing technologies and processes such as Facebook ads. Utilizing innovative strategies, he discovered that refining his approach to lead acquisition not only brought in more leads but also positioned his business to capture a broader market. This willingness to adapt and evolve his marketing methods ultimately contributed to decreased lead costs and an increase in the quality of leads obtained.
The Novation Method
Dakota's recent exploration of the novation process has transformed how he engages with potential sellers and manages transactions. By asking sellers if they prioritize the highest price or the simplest process, he has effectively integrated a solution that caters to both needs, enhancing seller satisfaction. Since implementing this approach, their closings have surged, with nailed down 20 novation deals in a mere three weeks. The flexibility of this method allows Dakota and his team to take on a wider range of properties and market them effectively, bringing substantial opportunities for profit.
Navigating Challenges in Growth
As Dakota's business continues to grow, he faces the challenge of managing scale while maintaining quality and efficiency. This growth, while rewarding, introduces logistical complexities as the volume of transactions increases and demands on the team intensify. He acknowledges that stepping away from hands-on operations can be daunting but essential for sustainable growth, as it allows time and resources to be dedicated to more strategic priorities. Balancing the excitement of new opportunities against the need for effective management is a key focus as Dakota forges ahead in his entrepreneurial journey.
Reflections on Personal and Professional Growth
Dakota is in a phase of significant transition, not just within his real estate business but also in his broader personal life. He reflects on the importance of purpose-driven work, finding fulfillment in challenges and growth opportunities presented through his entrepreneurial ventures. While he acknowledges the temptation to explore new business avenues, such as starting a wedding venue, he grapples with the need to maintain focus on core competencies that yield the most success. Ultimately, Dakota recognizes that aligning his personal goals with his professional aspirations will dictate the direction of his future endeavors.
In this episode, Ryan Pineda sits down with one of his early real estate students, Dakota Bailey, who has grown from a new investor to building a highly successful real estate business. Dakota shares how he used his income from car sales to buy distressed properties, apply the BRRRR method, and gradually scale his investments. But after years of hard work with limited cash flow, he realized that he had to make a shift and listen to Ryan's advice: start flipping properties and build a team.
Together, they discuss the challenges and breakthroughs that Dakota faced while transitioning from a 9-to-5 job to running a full-time real estate business. From his first hires and team-building strategies to leveraging new marketing channels, Dakota reveals what it takes to scale and the mindset required to succeed in real estate. They also dive into the advantages of novation deals and how they helped Dakota skyrocket his business in a tough market. --- Connect with Ryan Pineda Website: RyanPineda.com Instagram: @RyanPineda YouTube: Ryan Pineda
Follow Dakota Bailey Instagram: @DakotaBailey.IN
--- If you want to level up, text me at 725-527-7783!
Join our FREE community, weekly calls, and bible studies for Christian entrepreneurs and business people. https://www.wealthykingdom.com/ --- ---
About Ryan Pineda:
Ryan Pineda has been in the real estate industry since 2010 and has invested in over $100,000,000 of real estate. He has completed over 700 flips and wholesales, and he owns over 650 rental units. As an entrepreneur, he has founded seven different businesses that have generated 7-8 figures of revenue.
Ryan has amassed over 2 million followers on social media a...
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