#36 From Beginner to Winner with Viktor Jiracek
Victor Jiracek has only been in the business a couple of years, but he’s scaling up quickly. He is doing 20 to 30 deals a year flipping homes and shares his experience on how he started his business and made it this far. If you want to get into the business and transition, or you’re in the process of doing a few deals a year, you need to hear this one!
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Welcome to today’s show. We have Viktor Jiracek on the line today. Thanks for joining us, Victor. Victor’s only been in the business a couple of years. I typically have investors that are on, but I’ve been in the business for a long period of time, but, Victor and I connected, he’s only been in business a couple of years, but he’s scaling up very quickly. So this is a perfect time for us to talk to someone that’s a little bit newer in the business, because a lot of you guys are either wanting to get into the business and transition, or you’re in the process of just doing a few deals a year to potentially doing, you know, 20 to 30 deals a year like Victor’s doing now. So thanks Victor for coming on and sharing your experience with how you started your business and scaling up so quickly.
Happy to be here. Thanks for having me.
All right. Well, cool. Well, let’s start with your story. People like to hear stories, how you got started you know, how you got to where you are now just a couple years later doing, you know, two to three deals a month. It sounds like. So tell us two, three years back when you started, how did you get started? How’d you get educated and tell us your journey the last couple of years to get where you are now,
For sure. Happy to share. So what happened? So luckily real estate is a family business, so I’ve been doing it since I was young. We mostly did a lot of rentals. This was back in Utah. So we’ve been to a lot of rentals and I was young. I was probably 14 when I got started and it was like really like helping out like demo or like little menial renovation task is how it actually helps out. So kind of grew up with it and decided to go my own way with regards to real estate, trying to start some businesses, try some other things that didn’t really work out decided to get back into real estate. And it had always been a passion of mine and always like it was an underlying desire. Like this is actually pretty cool. This is pretty interesting.
It can be lucrative if you know what you’re doing so decided to get back into the real estate and really was brand new. Like the stuff that my family was doing was pretty not necessarily, it just wasn’t I wouldn’t say sophisticated, but it just was like, Hey, let’s find a deal at MLS. Let’s, you know, take it down and fix stuff ourselves. So a lot of the other stuff I had to learn, like how to find a deal, how to wholesale, how to do all that good stuff. So start out wholesaling. And my first two deals, my first deal made about 3000, second deal made about three and a half thousand. I’d always sell the deals to these flippers. And I saw her making 20, 30, 40,000 spreads, you know, on the property. I’m like, yeah, that’s where I want to be. Noise seemed to seem a lot more interesting to be flipping versus, you know, wholesaling feedback kind of middleman. Not that there’s anything wrong with it, but decided to get into wholesaling again, get into flipping, excuse me, get into flipping. So that’s how it went. So first year to two flips than than eight then did last year 20, and then this year I want to do 30 flips and it has just been going from growing from there, growing the team. And that’s the story.
Good stuff. So besides your family, obviously your family was in the business a little bit and probably still is. But other than that how did you learn wholesaling? How did you learn rehabbing? There’s a, those are obviously two different things, right? So talk about, I guess we can talk about two things. One is how you’ve learned both of those as well as what your big transition was from wholesaling to flipping, because that is right, is that you can make really big checks, flipping as opposed to wholesaling. There are some markets where people are making crazy checks, wholesaling like 50 grand. But you know a lot of markets like Gainesville, Florida, where you are, I think that’s a little bit of a lower price market. So the checks might not be quite as big. So talk to us about those.
For sure. So yeah, just like you’re saying, like the price point here, like if you were, if you were to get a 50 K wholesale check, you’re getting the property for free, basically like there’s, you know, there’s not that much room to work with. so, so for the wholesaling, for the rehabbing renovating that one’s easy. So that one kind of learned on my own, a lot of trial and error, which was unfortunate. That’s probably the worst way to learn something, by the way, like you do something, you make a mistake and you look back and like, okay, well, I won’t do that again. So I don’t mean to make that mistake again. So the wholesaling, I was actually lucky enough to have a mentor on it. This was an introduction, a friend of a friend. There was a guy Chris Chico is pretty well known in the industry and he was teaching Facebook ads and I was like, I’m so baffled, like, whoa, you can get deals and find properties through Facebook.
Like this is crazy. So I connected with him and with Chico and what happened was with Chico. Like he had a setup and he was offering mentoring. I couldn’t afford the mentoring at the time. And,what I ended up doing, I ended up working for him is cold caller had left at that point. I mean, like a month or two before. So he was out there looking for a cold caller. So, I basically came on like commission only whenever I can bring in. Um could, you know, whenever you eat, whenever you kill, you eat type of thing and just learn it that way. Like, how do you wholesale? How do you sound on the phone? What do you say on the phone? And we just, we just figured out that way, this way we started wholesaling.
Super cool. I’m actually friends with Chris. We’re going to get on a mastermind call here in a couple of days. We meet once a month with a bunch of other real estate guys, so good stuff, good stuff. So that’s a good point. A lot of people talk about getting into real estate and you know, one of the things that people say to me or ask me is 20 years ago, when you got started, what would you do differently then you know, what you did 20 years ago? And the number one thing is I say is, I wish I would have worked for someone that’s doing what I wanted to do. So that way I can cut the learning curve down and learn from someone that was, you know, super high level. So you were very smart by working with Chris to start out with and kind of learning the business and that type of thing. So that’s good. So, so that’s how you learned the business. So tell us about the transition from, from wholesaling to rehabbing. Obviously there’s more work involved. If you’re making a 50 K wholesale check or, or let’s say even a 20 K wholesale check and you’re making 30 K rehabbing, there’s kind of that fine line on whether you really want to spend that extra time to rehab, but going from 3K to 20K is obviously a big difference, which in Wichita, Kansas, it’s kind of the same thing. We can, we can probably make 5 to 10 K wholesaling, but we make 30 to 50 grand rehabbing. So for us, it makes sense. So tell us about the transition. How much harder is it to rehab compared to wholesale?
Yeah, for sure. So the transition was like part of it was for wholesaling. I didn’t really like the wholesaling at its core. Like if you want to flip grade, if you want to wholesale, great, there’s nothing inherently wrong with either. I just liked the idea of flipping more. I like the idea of, you know, rehabbing more for wholesale. I never liked being that middleman where like I find a deal, okay. Negotiate with a seller, negotiate, negotiate. Okay. I have a deal now I gotta find a cash buyer. It’s like, okay, negotiate, negotiate. They want a good deal. They’re gonna kind of beat me up and I’m kinda squeezing the middle. So I never liked that. So just me taking down the deal myself, I was like, okay, well, I just got to find a seller and I’ll just take it down myself. So that was like the biggest transition just like a mental transition like, Hey, I think this is going to be soon it’s going to be easier to just do it myself. And yes, I have to renovate the property, but that’s pretty much it. And then for the renovation, like how I learned that just pretty much jumped into it. And, must learned really quickly, just again, trial and error and finding out like, Hey, we over budgeted on this and under budget on this. And then next time we did a flip and, most better and got better. I was starting, I was trying to help out as much as possible on the renovation. So I’ll be there with the painting. I’d help out with the flooring as much as possible, help out with the demo just like I did when I was younger. And I think that was a good place to start just because I better understand what that, you know, what each property needs, but I don’t, I wouldn’t do that as much anymore. I just don’t have the time. So it’s just one of those things. So I just really learned by jumping into it.
What are the biggest things with rehabbing that you learned? So obviously you’ve learned probably a lot of lessons over the deals that you’ve done already. What are some – so I guess for people who are wanting to go from wholesaling to rehabbing, what is the biggest piece of advice that you’ve gotten based on some of the mistakes you’ve made or some of the things you’ve learned through throughout the process?
Yeah. I know there’s a ton. I could talk all day about that. So probably like there’s two things that always happen in real estate. It was cost more than you want always takes longer than anymore. So just realizing that. So just realize like that’s a part of the game. I’ve talked to some people who are beginners and like, Oh, I went over budget on my rehab. It’s like that’s gonna happen quite a lot. So that was part of it. I think the other thing is like, don’t cut corners, so just do it right. Do it right the first time. There’s a penalty if you try to try to save and skimp and not do it right the first time. Like for example, here we, on a property, we skip the inspection. Like typically by right before we buy a property, we do an inspection just to make sure get a third party in there and make sure you didn’t miss anything, make sure like we know what we’re getting into. So property recently, we skipped that. And so we did all the renovation. Okay. New kitchen, new flooring and paint and the roof, and then got a buyer like to sell it. I got on her contract and they went in there and like the piping was bad. Like the plumbing was bad. So we had to do a re-pipe and once everything’s closed up in terms of like kitchen and bathroom, like everything’s nice and nice and done. It’s, it’s kind of a pain in the to have to open it up again and like, you know, put in the new pipes and all that stuff. So we got penalized for that,in terms of like, we had to go back and do that work and,it was just a pain in the button versus when everything’s open, it’s super easy to knock that stuff out. So if you just do it right and do it right the first time, you don’t have to worry about any of that stuff on the back-end. So don’t try to cut corners anytime I’ve tried to cut corners, it’s always, you know, hurt me, you know, just, don’t try to skimp know what you should do and do it.
Yeah. Good point. Good point. So, you know, you talked about mindset before we got on the call. And so you like talking about mindset. I think that’s a big, that’s a big topic because you know, the difference between someone like yourself and someone who doesn’t do a deal usually has to do with mindset. It’s like whether they believe they can do it, whether they take the actions I mean, there’s so many things to it. So let’s talk about that. So getting into the business with, you know, doing no deals compared to where you are now doing the deals that you’re doing what are some obstacles you had to overcome mentally that got you to the point where you are now, where you’re, where you’re doing a pretty good amount of deals?
I think the biggest thing, and I’m asked this all the time is like, how do we get the money? I think the biggest kind of mindset shift is if you get a good enough deal, the money’s going to flow. So, and that’s the biggest thing. So people are focused on the wrong thing. They’re like, okay, how do I get the money? How do I get the money? I’m not going to go out there and look at deals until I have the money. And then I found out like, there’s always people out there who are looking for deals or they’re, they’re working. And they have money in the bank. They want to put it to use or people who are open to partnering and they don’t know how to get started themselves. But that only gets unlocked once you have a really good deal. Like once you have a really good deal, like the rest falls into place, people are like, okay, yeah, let’s partner, let’s do 50 50, or I’ll, I’ll do private money lending or, you know, just the, the sky opens up for you. So that was like the biggest mindset shift, because if you don’t have that mindset shift and it’s like, okay, I need to find money and I need to find the deal and you just kind of get paralyzed and never take that first step forward.
Yeah. So what is the next thing for you? Are you building out a team? Are you planning on doing like, some people want to get into commercial real estate? I know it’s still a little bit newer in, you know, in, in you’re newer in the business, but, what are your goals? What other things do you want to accomplish?
I just want to do more deals, bigger deals, better deals. I really like flipping and residential flipping. So I’m just going to stick with that. I’ve tried kind of poke my head into a lot of things just to try it. And I’ve always been, always been penalized. No, one’s just wanting to stick with this. Like I tried new construction and that didn’t go well. So I guess I just want to stick to this side, you know, it, I enjoy it. I tried like Airbnb, I tried like rentals. I tried a ton of stuff. I tried like even going more and more virtual. So not just flipping in my local area, which is what I do, but I started flipping a little bit farther away and that didn’t go so well. Not that there’s anything wrong with that, but just there’s so much, I don’t have so much resources. I have so much local market knowledge. Like there’s a lot of benefits for me to just do my deals here. So pretty much, you know, just do, do more deals. Like all the money I live pretty, live pretty lean. So I’m not buying Lamborghini’s or jets or anything like that. I put all the money back into the flips and just do more deals. This is pretty much the goal.
Yeah. That’s good stuff. So yeah, I just read a book recently called 80 20 sales and marketing. I don’t know if you’ve ever heard of it. It’s really good book you gotta check it out. So I asked what else you’re looking to do? And I think the answer was great. It’s you know, you’ve tried some things, but you raised focused on this cause that’s bringing the results, right? So it’s like the 80 20 rule. It’s like the 20% you do right here is going to get you 80% of the results. Whereas if you start getting into that other 80% of the stuff you do, you’re still going to go back to that 20%. That’s bringing most of the results. So, you know, do what do what works well, systemize it and automate it as good as you possibly can.
And I have my, I have multiple businesses now, but the first I don’t know, 10 to 12 years, I probably should not have gone outside my box. Cause I was still systematizing my business and building my team out. I only have to work a few hours in my business now, but you know, going back, I realized that I strayed away too many times and it took away from my core business. So I always tell people if they want to do, you know, other things, make sure that they have their core business, the 20% they do that produces 80% percent of the results have that down really well, have a good team in place and then go out and venture outside. Cause that’s, that’s messed up a lot of people trying to try to diversify too fast and too quick. So that was a really good answer. You get me?
No, I think that’s fun. The other thing I want to tag onto that is just, you know, follow what you enjoy. So I feel, I was just focusing on wholesaling. I mentioned, I didn’t like that as much. I don’t think I’d be,doing as much volume as I am now or, you know, having as much success as I am now, but it, because I enjoy flipping inherently, I’m happy to put in the extra effort or do that extra research, which then compounds into better results, which then compounds in into more money, which compounds until, you know, it really grows from there, but just the heart of it is like, I actually, I actually enjoy it. So I want to be doing it. I want to, you know, I enjoy and get something out of it. And that,I’ve seen that bring, you know, again, just compounding results. So just like the extra 1% that you put in today, it’s, you know, how that scales and influences the next several years.
Gotcha. So let’s talk about the the way you’re finding deals. So you talked briefly before we started how you’re finding your deals. So getting started, what would you recommend people do that don’t have big budgets that you know, are starting lean for them to go out and find deals?
When I recommend for people getting started, like start with free methods to get deals like F R E E free, because you want to practice running your numbers. You want to practice negotiate. You want to practice talking to sellers, getting out there, free methods or things like Craigslist Facebook marketplace, for sale by owner. I would even throw in wholesalers in there if you can throw it even MLS, but you’re getting out there and you’re like, you’re working leads for free. And then once you get a good base and get really confident there maybe you’ll even get a deal within that first 10 offers will have you. Then it’s, that’s why I recommend a switch to paid stuff and pay is like direct mail, cold calling Facebook ads, PBC. I can keep listing things, but you don’t want to be practicing when like it’s costing you a hundred bucks, a lead or 200 bucks a lead. Cause that’s when you want to be dialed in like, okay, this is a lead, this is a deal. I know it’s going to happen. I know, you know what to say when to say it, how to follow up everything like that, because then that makes sense. Cause then you’re happy to pay for it. But if you’re still struggling, not knowing what to say, then going to paid stuff is just gonna, you know, we’re just going to lose your money.
Yeah, that’s good advice. Because when I first started, I went into the MLS. I would find realtors that had deals I’d even go into the newspaper back then newspapers, more popular. I think there might still be deals in newspaper now, I don’t know, but I used to go through the newspaper and call all the time and then I’d meet agents out at properties and, and things like that. And that’s actually how I, how I got my real estate license. I called an agent in the newspaper. I looked at a property, made an offer. I bought that first property. And then that agent talked to me to get my real estate license. And then I ended up eventually doing a phone book advertising, which believe it or not was doing really well for me for a long time, spent three, no, 150 bucks a month on my first ad. And then I have to go into 300 bucks and then I went up to 700, kept doing so well every year that, that I kept increasing, obviously phone books kinda gone away for the most part. And then now, you know, all the way to TV. So I went from free, like you said to small paid and then scaled it up to where, you know, we’re spending quite a bit of money each month, so good stuff.
That’s fantastic. Yellow book. I don’t know. That’s crazy. That’s definitely dating yourself. Huh?
Oh man. Yeah. 20 years ago. That was a great source of revenue. I mean, man, I think up until like 2013, probably I’m guessing is when I stopped it. But man, for about 10 years it was crushing. It I’d spend, you know, 700 bucks a month. I was probably buying a couple deals a month off of that. So if you do the math on that, that’s like a, I don’t know what that is. 20 times return on investment or something maybe even more. So it was good stuff.
That’s something else. I am curious. Like, because you’ve been in it for so long. Like what have you seen that’s changed other than kind of those, those marketing mediums is it more competitive than it used to be more people are just in it or like what are some of the changes?
Yeah, that’s a great question. I think, I think it’s gotten really competitive, a lot of different ways. So I know direct mail is very competitive. It can still work, but it’s very competitive. A lot of people buying the same list. So you either have to have a really good message that sticks out from everybody else or something that differentiates yourself. People are cold calling and texting a lot, which I think is a very inexpensive way to do it. The problem is it’s very saturated as well and eventually it’s probably going to go away texting. I’m sure it’s going to go away in the next few years. Just the regulations that they’re putting on texting and then cold calling potentially the same not to mention the, you know, the complaints and the amount of time it takes to do those kinds of things.
So yeah, I mean there’s a lot of competition in the market. You just really have to differentiate yourself, you know, for me, it’s TV. You know, I teach people how to do a TV in their markets. So TV for me is very untapped in most markets. It’s less competitive. It’s people calling you rather than you having to reach out to them. So the leads are much more qualified and the ROI is great. I’m getting over 10 times return on my money right now on TV. So.
Yeah. So you just have to find different methods of marketing that, that people aren’t doing, you know I think driving for dollars is a great one. You know, finding dilapidated properties, having someone drive and find addresses and mailing them and maybe even skip tracing them. So a lot of different ways to differentiate yourself, but as you probably know, it’s a lot of competition. So you just have to figure out how to do it different than everybody else.
That’s fantastic. I think, cause I’ve looked at a TV at least briefly. I think probably the biggest, concern people have is cost. So is it not that costly or how does that work with whereas a TV and I was imagine it’d be like really expensive, so it’s hard to get into.
Yeah. You’re in a small market Gainesville. You know, that’s about, I’m guessing what is that about 300,000 people give or take
For the County? Yeah. For Gainesville city 130,000. Yeah. Okay.
Okay. So I’ve looked up some someone’s inquired about TV in your market before I think it was 120,000 homes. So that’s yeah, 300, probably 300,000 people total, maybe four or five, I’d say about 300,000 people. So for your market, you could actually get away with a really nice budget of like probably three grand a month. What would get you a really good reach and get you really good results? That’s what I started with was about a $3,000 a month budget and we’ve upped it since then. And our market is probably maybe twice the size, not quite twice the size as yours and we were still getting really good results. So it’s not as expensive as people would think. And we’ve got a really good system that shows people how to do it. So it’s, you know, we buy the media and help produce a commercial and basically take it, take away all of the things that people think are really hard about it and make it pretty easy. So it’s really a really good source of leads, especially for small markets like yours. For sure. So
Awesome. Yeah. 3K. I mean, that’s not, that’s not terrible. I thought it’d be like 5K, 10K, 15K like, Oh, this is so expensive but it makes sense. That’s super cool. Super, super cool.
You spent five if you wanted to, but you could get away with three pretty easily. So yeah. Well, cool. So we’ll start wrapping it up a little bit. So, so good info, you know, you talked about the beginner mindset of, you know, the limiting beliefs, especially that money’s not there. I mean, a lot of people, like I do get funding for real estate investors and, you know it’s people are always looking for money and they feel like it’s harder than it really is. There’s a lot of access to money. So like you said, you find the deal you know, you can, you can find the money and then, you know, the transition from wholesaling to rehabbing sounded like it was just something you just jumped into and that’s my personality, man. When I want to do something, you know, I’ll try and learn it a little bit, but for me, it’s just like experience. You’ve got to jump in. Now, you know, obviously there’s some things you need to research a little bit more than others before you jump in, but there’s no, there’s no better experience than just jumping in and doing it. So what other lessons, I mean, what else do you want to share with the audience that can help them from either, you know, starting out or taking their business from, you know, just doing a few deals a year to where, to where they’re doing, they’re doing quite a bit more in the real estate game.
Yeah. I’d love to expand on the idea because like that beginner’s mindset, which we talked about. I want to expand on that. A lot of people get caught in their head with regards to analysis paralysis. And I talk to people all the time and I asked him like, okay how many years have you been trying to get into this? Like how many years have you been thinking about real estate? Like, I’ve been trying to think of doing this or trying to get into it for five years. So I’m like, okay, cool. How many offers have you made? And they’re like, Oh, I’ve made zero. I’ve made no offers. So even the biggest thing is people just really get in their heads and then they actually don’t even take a little step in the right direction. So I break it out for people like, just take a little, a little baby step in the right direction.
Even if that’s something like, you know, don’t even give an offer on a property, just go and talk to the seller. So don’t even worry about the offer. Just talk to the seller like, Hey, how, how old is this property? What condition is it in just to get comfortable with that? That’s like the first baby step. So going from zero to not even making an offer, but talking to a seller and then the next baby step after that is actually get out there and make an offer. And then the next baby step after that is okay, now make a low ball offer. But the point is like, you’re getting unstuck, you’re building momentum. And then you start to do that consistently. And like you, you get a deal. So typically for me, it’s something like one in the 15 offers, it becomes a deal. So you’ve got to get out there and, you know, make those offers.
So if you do like one a day, but you start somewhere, like you make these little baby steps and you get comfortable. Cause I know a lot of people get anxious, just talking to sound like, what if they reject me? What if they yell at me? You know, what, if they hang up on me and just breaking out out of these like fear and these barriers, these mostly mental things that that are going on that typically don’t happen because people are typically nice. Just building on momentum is really helpful. And if you even do like a little bit of action every day, like you’ll be surprised where you’re at in a year from now or even five years from now.
Yeah. It’s an interesting point. I talk with someone weekly and they talk about how many offers they make a week. They know how many deals they want to do, but they break it down into actionable steps. So rather than I want to buy a deal a week, it’s I want to make five offers this week. Right. Because it’s really, it’s almost as much about the action as it is the result. If you do the actions the result will come. So making offers on properties, talking to sellers is a very good thing to start doing. Just as an action, it doesn’t necessarily have to be, you’re going to buy a property. That’s going to come. But if you make a goal of making so many offers, you’re talking to so many sellers you’re going to get that deal by the way, you’ve only been in the business a couple of years, but you’ve touched on some really good points. There’s some really good things that seasoned investors have brought to my podcast that you’re bringing up as well. So you talk like a seasoned investor, so congrats on the success, just in the, you know, the first couple of years or a few years you’ve been in business. And I thought, you know, it’s great. It’s great for you to come on. Cause you’re, you’re pretty fresh in the business. You just, I mean when did you buy your first deal? About three years ago.
Yeah, so October late, October, 2018 was the first flip. So like two and a half, three years ago, roughly. Yeah.
Yeah. So that’s awesome. And I would imagine that three years ago, you probably couldn’t given, been given, couldn’t have given near the advice that you’ve given now because of all the experience, right?
Yeah. No experience and it’s been a ton of experience. Yeah. It’s like learning from a fire house I guess is how I put it in a good way. But yeah, I didn’t know, you know, 1/10th of what I know now.
Awesome. Well hopefully you inspired some people to really get off the couch and really start doing some actionable items, making offers, looking at properties and getting into the game. Cause really, it just takes that one deal to get your feet wet, to be like, man, this is really where I want to be. And then all of a sudden they can snowball into a really profitable business. So thanks again for coming on Victor and look forward to connecting again outside of here and hopefully the audience got some really good nuggets from you. So appreciate you and talk to you soon.
Thanks for having me.