Use Friends Money to Make $500k Ethically with Mark Gagner of Bridge Equity Group
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
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.
email@example.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
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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