“You make too much money.”
That echoed in Missouri native Ryan Haywood’s ears after his boss decided to cut his commission. This is a “sales haircut” that is bitterly known in the industry.
This concept of being penalized for success was disconcerting to Ryan. Among all the negative aspects of his job — being required to answer after-hours calls from his boss, dealing with poor management, and working up to 80 hours a week — this pay cut was It was the final blow. Although he didn’t realize it at the time, this setback was about to reveal a path that would lead his family to the future that Ryan and his wife, Megan, had dreamed of.
Ryan’s story I’m about to share is more than just a testament to his determination to build wealth his way. This story is about his strategic and practical approach to building a truly successful real estate company in the face of uncertainty, and is packed with solid insights every investor should hear.
Ryan’s journey from sales to real estate
That was at the end of 2019. Ryan and Megan were expecting their third child at a time that should be full of anticipation and joy for the family.
Instead, uncertainty loomed. Despite the lucrative nature of work in the budding field of fiber optics, the instability and lack of recognition left Ryan yearning for a change. He was in a dilemma. Even if he gets a high-paying job, he gains little in terms of job satisfaction and stability. To make matters worse, the company he worked for had just decided to cut his salary significantly because he was selling too much.
Ryan knew something had to change. He didn’t yet understand what the change would be. Shortly after hearing this news, Megan and Ryan welcomed their third child together. This means Ryan is on his maternity leave and suddenly has extra time. He didn’t know what his next step would be. All he knew was that he couldn’t go back to his current nine-to-five job that was toxic.
It was around this time that Ryan’s wife Megan stumbled across the 30-day wholesale challenge on Instagram and approached Ryan for advice. They had dabbled in real estate investing years ago and had rented out properties several times, but had paid little attention to them. At first, Ryan wasn’t interested in the wholesale idea and turned down the idea of his 30-day social media challenge because it seemed like a bit of a gimmick at this point.
But after some thought and Megan’s persistence, he decides to give it a try. As it turns out, this challenge not only taught him the basics of wholesale business, but also ignited a previously untapped passion for real estate.
First steps and challenges
Despite the initial resistance, Ryan worked hard to win this challenge. This means closing your first wholesale deal within 30 days. This requires raising dollars to find distressed properties, contacting homeowners (in Ryan’s case via direct mail), securing a purchase agreement from the seller, and Ryan assigning it to the final buyer. Ta.
In contrast to later experiences, Ryan’s first deals were obtained verbally (in this case, that meant telling the people around him at dinner what he was doing) and involved direct contact with the seller. There was no need for any serious negotiations. Instead, it was a learning process on the fly, figuring out how to assess the value of a property and the cost of necessary repairs with limited prior knowledge in the field.
Despite this initial uncertainty and steep learning curve, Ryan’s persistence paid off when he secured his first real estate deal. This pivotal moment not only validated his new career focus; He also made a hefty profit, earning $8,500 in finder’s fees.
As many of his previous investors have said, this deal was very important. It’s not just because of the $8,500 check. That’s just a bonus. This deal was a proof of concept that wholesaling as a strategy works. In other words, the business model was proven right before our eyes.
Ryan admits that he was still “intimidated” by wholesale, as he had little knowledge or understanding of it at this point. Still, with his check in hand, he knew this was the path forward for him and his family.
At the end of the challenge, Ryan ended up closing two deals totaling $28,500 in 30 days. This figure was his base salary at his previous job. He managed to escape the rat race and, in the end, never set foot in his old office again.
Scale up and technology adoption
At that point, Ryan and Megan focused on getting more deals and repeating the process. From the beginning, they wanted it to be a family-friendly adventure. They even packed up their kids and took them on business trips so everyone could benefit from the lifestyle experiences that brought them so much success.
They needed reliable and efficient technology that would allow them to manage their processes and achieve real success when traveling to new markets and cities to explore investment opportunities. Thanks to DealMachine, the technology platform at the heart of the 30-day challenge, they were able to build their business and travel while working on it.
Scaling happened naturally because we introduced technology. Wholesaling is a numbers game to grow your business. To ensure a smooth pipeline, you need more leads, more marketing, and people in key positions. DealMachine can help you with all of this and then some, keeping your leads coming in and your marketing on autopilot while Ryan and Megan focus on the most important parts of their business and spending time together as a family. I made it possible for me to continue.
To give you a deeper insight into how we scaled up after winning our first few deals, here’s a breakdown of our numbers from the first few years of our business.
- First full year (2020): With no standard operating procedures (SOPs) or employees, just Ryan and Megan worked together to complete 73 wholesale transactions.
- Next year (2021): The number of wholesale transactions increased significantly to 113. This year, a Transaction Coordinator (TC) and a salesperson were also introduced, but they quickly left. A new TC was hired and evaluated for his competency in this area, eventually taking on sales duties as well.
- Next year (2022): Conducted 45 wholesale transactions. While this may seem like a decline, it was part of a strategic shift to focus on quality and integrate construction into the business model. The team grew to eight of his players and his average assignment fee increased to $10,500.
- portfolio growth: From 7 rental properties in 2020 to 12 by the end of 2021, and then expanding the portfolio to 30 properties.
- Financial highlights: In 2021, we generated $575,000 in revenue, and in 2022, we surpassed $1 million in revenue.
- Business shift: We launched our own construction staff in 2022 to better control the quality and schedule of renovations for investment properties.
Networking and community building
In their pursuit of business growth, Ryan and Megan Heywood not only built relationships with city officials, but also repaired relationships with local real estate agents who were initially wary of wholesalers. Their efforts to repair broken properties across St. Joseph, Missouri earned Ryan the nickname “Golden Child” from the mayor, highlighting the impact their work had on the foundations of their communities.
This special recognition from city leaders highlights how close collaboration with city officials helped smooth the project’s progress and fostered a mutually beneficial environment, supporting both companies’ strategic Demonstrated the benefits of relationships.
These partnerships have proven invaluable in navigating the complexities of real estate development, from regulatory compliance to accessing new opportunities that align with our mission to improve our communities. City officials, who are often the gateway to successfully securing permits and zoning for building projects around the city, could physically see Ryan making a positive difference. So I was happy to help him.
Some of these officials had deep knowledge of the city’s housing and served as a resource for their business, guiding them to properties and areas around St. Joseph that needed change. In addition to this, our interactions with agents eventually moved from skepticism to cooperation, demonstrating the value and professionalism that agents brought to these relationships as well.
For Ryan and Megan, the lesson was clear. Building a network that includes both city officials and real estate professionals can greatly enhance an investor’s ability to effect positive change while effectively growing their business.
lessons learned
If you look at Ryan Heywood’s journey in real estate, there are a few things you can learn from it. With over 400 of his transactions to date, Ryan has not only shown what is possible with his dedication and strategic planning, but has also developed specific practices for long-term success. We have also demonstrated the importance of hiring.
Here are some key takeaways from his experience: Each provides a blueprint for how to effectively navigate the complexities of real estate investing.
Accept to join the community
Ryan’s success has been greatly fueled by the strong relationships he has built with community leaders and real estate professionals. This highlights the value of networking not only for deal flow but also for fostering a supportive ecosystem to drive your business forward.
Leverage technology to become more efficient
By leveraging a real estate technology platform, Ryan was able to streamline the process of identifying and managing potential deals and grow his operations. For investors, adopting such technology increases productivity and allows them to focus more time on strategic decision-making.
Adopt a mission-driven approach
Having a clear mission, such as improving the community, can help you differentiate yourself in a crowded market. Ryan’s focus on revitalization projects has earned him the nickname “Golden Child,” emphasizing the impact of aligning his business goals with community values.
final thoughts
Ryan Heywood’s journey in real estate is a compelling story of strategic growth, innovation, and impactful community engagement. His progression from executing individual trades to achieving his 400+ trades is not just a personal success story, but a blueprint for investors looking to improve their business practices.
Haywood’s story explores the critical role of implementing technology to streamline business operations, the power of networking within and outside the local community to open up new opportunities, and the power of networking within and outside the local community to foster both business growth and community development. It emphasizes the impact it has.
For investors looking to replicate Ryan’s success, a key takeaway is the value of strategic adaptability. That means moving forward by integrating new tools and methodologies, while remaining rooted in the well-being of our communities and our larger “why.” This story shows that success in real estate requires not only good financial judgment but also a vision that goes beyond personal gain.
This article is brought to you by DealMachine
DealMachine makes it easy for real estate professionals to find and invest in off-market properties, offering a comprehensive app that guides them every step of the way. From identifying potential investments to instant access to high-quality homeowner data to make informed decisions, we make investing simple and effective. Click to start growing your portfolio today!
Note by BiggerPockets: These are the opinions expressed by the author and do not necessarily represent the opinions of BiggerPockets.
