Ep 153 features Mark Gagner, the president of Bridge Equity Group, a company specializing in single family fix and flip project in Northern California. Listen as Nathan and Mark talk about how the latter’s company remodels properties and flips them for profit.
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3 Key Points:
- Properties that come with challenges such as foundational issues are good targets for remodeling purposes, because they have less competition on the market.
- Fix and flippers often get their deals through wholesale, but it’s also possible to sustain business through skilled agents.
- One can fund their business like Mark through various means such as hard money loans, private money loans, and personal savings.
Time Stamped Show Notes:
- 01:00 – Nathan’s introduction to today’s show
- 01:43 – Mark joins the show
- 01:52 – Gagner-Toomey Assoc. is a family run business Mark’s been running since 1999.
- 02:28 – The company trades about 2-4 million in electronic components every month and collects about 2-5% commission.
- 03:36 – Most of Mark’s resources are applied to his real estate business, Bridge Equity Group.
- 04:54 – For Mark’s most recent fix-up, his company bought a property for 400K and sold it for around 700K. The deal made roughly 100K after remodeling costs.
- 05:38 – Bridge Equity Group remodels kitchens, bathrooms, floors, and windows. They remake the house.
- 06:30 – The house was found off the MLS (multiple listing service).
- 07:21 – Mark targets properties that have challenges such as foundation issues. They have less competition and are more easily purchased.
- 07:41 – The majority of Mark’s deals are found through agents and sometime through wholesale.
- 08:42 – Bridge Equity Group plans on using direct mail to find buyers and sellers – one of the challenges is finding the right recipients.
- 09:28 – Many fix and flippers in the Bay area rely on wholesale, but Mark’s found agents who are very efficient at finding opportunities.
- 10:30 – His agents get bonuses after each project.
- 11:18 – Mark finances Bridge Equity group through hard money loans, private money loans, and personal savings.
- 12:16 – For the last deal with the 400K house, Mark puts a portion of his savings into remodeling the house, but not acquiring it.
- 13:30 – Mark is personally liable for things that don’t get sold, but luckily for him, in Northern California everything gets sold.
- 16:49 – Famous Five
Resources Mentioned:
- Growth Geeks – The way Nathan hires growth hackers on a per project basis for things like info graphics, blog posts, and other growth projects
- Bridge Equity Group – Mark’s company.
- mgagner@bridgeequitygroup.com – Mark’s email.
- Gagner-Toomey Assoc. – Mark’s family business
- Rich Dad Poor Dad – Book Mark stands by
- Book by Rock Thomas – CEO Mark follows
Famous 5
- Favorite Book?— Rich Dad, Poor Dad by Robert Kiyosaki
- What CEO do you follow?— Rock Thomas, author of The Power of Your Identity
- What is your favorite online tool?— No, not really.
- Do you get 8 hours of sleep?— No
- If you could let your 20 year old self know one thing, what would it be?— To have more of a mindset as an entrepreneur instead of staying in corporate.
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