How One Real Estate Deal Can Create Multiple Paydays | Kevin Kelly

Kevin Kelly (00:00)
Remember something, it’s two paydays. You’ll start teaching yourself those tricks. I’m sure you know very well in real estate. The more paydays you can get, the better, right? People get very hung up on selling single family homes or this or that, right?

Not many people say, hey, like something I’m working on right now, why don’t we build neighborhoods? Why don’t we sell lots, large lots, unsubdivided to a builder? Why don’t we work on that? You know why, guys? Because every house that gets built there is going to be your listing after that. You just made yourself one big payday. Let’s say it’s a million dollar lot. You got 25 grand minus fees and com commission split, right? Well, let’s say you got 25 grand.

Issa Hanna (02:11)
Welcome back to another episode of the Real Estate Pros Show. I’m your host, Issa Hanna and today I have Kevin Kelly here to share his knowledge with us. Kevin, welcome.

Kevin Kelly (02:19)
Hey, thank you so much for having me. I’m very excited.

Issa Hanna (02:22)
I’m very excited to have you, fellow realtor on the show. you got your real estate license and and you grew from there, which which a lot of us do. so I’m super excited to pick your brain. But for our viewers at home, can you kind of give them a a rundown of your day to days? What what’s your focus on nowadays?

Kevin Kelly (02:42)
So for starters, I’m a realtor with Long & Foster. I also do some investment properties. So buying a property that’s, you know, kind of half the time pretty beat up in all reality, but a good property with good bones and a good area, good school districts. And I breathe life back into it. You know, we we take the oldest one we’ve done was 1924, gorgeous old wooden house. And everything about it, they’re never making that again. It’s a beautiful property, and we breathe, we we breathe

made it new again. We made everything perfect. We gutted it, new electric, new plumbing. and then I list it. So being a full time realtor, we kind of go hand in hand with those things. I I really am enjoying the the change of the market that I’m hoping is happening right now. We’re starting to see a little bit of pickup. And anyone out there that’s looking for investment properties, make sure you’re looking every day. Make sure you’re looking on the hot sheets every day, two or three times a day.

‘Cause the opportunities that’s there right now, it’s gone like that. It’s gone in a day. We’re limited, but there’s also good stuff going on. I don’t want people to think that, gosh, you know, it’s a little slow right now, the world’s ending. It’s not. Just keep on the ball. That’s my best advice for people. Don’t ever take your foot off the pedal. You know.

Issa Hanna (03:59)
Definitely great great advice from a from a very knowledgeable person. And and we were talking earlier. The extra competition is coming from the this post COVID. People sold their homes for a really high price. They rented, and now they’re coming back into the home buyer market and they’re competing with the investors because you know, they’ve been on the sideline so long, they’ve been paying rent so long, and these people are qualified. So you know, you’re now competing.

on investment properties with the normal average home buyer. So and and and you you brought that up, you know, the lack of inventory where you’re at, Southeastern PA and close to Philly, it’s definitely becoming a problem. So yeah, you got to stay on the market. You got to be ready to jump on it. but don’t go after those shiny objects, you guys. Stick to your guns, stick to what you how you underwrite, you know? that’s the best advice I can also add to great advice from Kevin.

And I wanna shift focus just a little bit because we touched on your history. You’re a realtor, you said you started with a team. I wanna know how you know, and then you started in real estate, you became an accidental landlord, and that’s how you you got into it. So can you give our viewers that story, please?

Kevin Kelly (05:58)
Sure. So we’ll start with the landlord and that kind of developed into the team. So unfortunately my grandma a decade ago passed away and she left me a lovely little condo. But you know, it was nineteen eighty on the inside. It was grandma’s condo. And I rented it out. I had a tenant in there for a few years and over COVID, actually really right before, she stopped paying rent. Now I was unlicensed at this point. I didn’t really

I didn’t really expect that. I wasn’t thinking that far ahead. And it kind of occurred to me, why not become licensed, handle it myself, gut the place, bring in a couple of guys and, you know, new kitchens, new bathrooms, the whole the whole nine yards, everything. Electric, water here, everything. And that was that became my first listing. And that’s where I realized, you know, there’s there’s a lot to this. You can really do well if you start off on the right foot.

So getting licensed during that prop that time the property was being renovated was a bit stressful for sure. But rolling into it with inventory the day I got in was such an amazing feeling. it definitely shed light that I stood out a little bit different. I thought a little different. a lot of people want buyers and sellers and they don’t really get involved with the investing and gutting. That’s a lot of stress and a lot of money.

But I stood out to a team and luckily it was a it’s a two person team. It was me and one one lady who I’ve known since the nineties. So we did have history, went to school with her kids. But we together we became number one out of three hundred agents. And if we weren’t number one that year, we’re in the top five. Some of these teams have thirty people on it. So that was my experience. It was whoa. I did all this this great work. It was a great experience, and then you’re on a team now. We want you.

And here’s a list of buyers and sellers that we’re working on that you’re gonna be co-listed, you’re gonna be responsible, it’s gonna be sink or swim. And that’s really what happened. It was sink or swim, but I loved it. I loved every second of it, even the scary parts, because every time I got scared, I learned something. And then the next time it’s not as scary, you know, just repetition. And getting some experience along the way for sure.

Issa Hanna (08:13)
A hundred percent. To you young guys out there just starting off your real stores, get on a good team because yeah, like Kevin said, you’re gonna go through the fire, you’re gonna learn how to swim, not on your own, right? you’re gonna get thrown in the deep end, but you’re gonna have somebody you can reach out to that can help you along the way. and and you know, once you gain the knowledge and you can branch out on your own. So man, I love that. I love the two person team, you know, because you guys know each other so well and you worked well together.

two person team became number one. that’s that’s how it can be. When when you’re knowledgeable, when you’re on the ball like that, literally you can take over. because consumers, clients, they want somebody that’s confident and knowledgeable. you know, they don’t want somebody coming in, stumbling around. They want somebody coming in prepared, ready to go. and then it it also helps having a great brand and and the team. So man, Kevin, I I love that. I love how you’re getting started, very well thought out.

Cut out for the real estate business. You said that I loved it. I star I jumped in, I started swimming, and I loved it. those are people that last in our game, and and you have lasted. So I man, amazing, amazing knowledge we’re we’re already getting from you right now. It’s it’s great. Now I want to shift focus. We all had a real estate nightmare. You touched base on your first real estate nightmare, right? I always say we never lose, we always learn. And and you kind of

Echoed that a little bit before. give us give us another real estate nightmare that sticks out in your mind over the years.

Kevin Kelly (10:24)
geez, where where do you begin? I actually have one that is pretty wild. We had a seller who retired and moved to Israel, and her house we we had permission to sign for a closing. She was an older lady, and something got held up at closing while she’s on a plane to Israel. Stopped the whole closing. The c I think the most interesting part of the story was.

one I think the local rabbi knew someone that was higher up in some political thing there. He actually got her signature the second she landed, met at the airport, got the signature, closed the like we were able to close the deal, work everything out. And I think that was like the craziest, most like like high and low experience I’ve had. But I’d say the crazier experiences come from working as an investor.

You know, working with the subcontractors. we spoke a bit before briefly. I had a crazy experience on a very large investment property that I wouldn’t wish on my my worst enemy, I gotta tell you. But it worked out. So in the end it was all great. but I had a builder whose son passed away during the largest project, the biggest risk I’ve ever taken on a hundred year old house that was about six thousand square feet made of wood in the middle of the project, as it’s gutted.

Guy disappeared. I understand. That was probably the most like, whoa. You’re really in it. You’re gonna have to make the right decisions. You’re gonna have to really pay attention to all, every 100% w angle of this project. that was probably the biggest whoa moment. Because then you’re dealing, you’re closing permits, not a builder. You know, you’re dealing with subcontractors that say, I did it right. Again, not a builder. So you really have to know what you’re doing. You have to be

I’d say wise enough to bring other people in when you don’t know what you’re talking about. I think a lot of people struggle with that. They think it’ll work fine. We’re around professionals. Well, guess what? It doesn’t always work fine. And if you don’t know what you need to know, you’re you’re you’re screwed you’re really you’re screwed. Excuse my French, but you’re you’re totally screwed. so I think that was right. I think that was the most whoa. And then the buyers that came in were it was a very expensive, it was a two million plus dollar house. And the buyers were very particular.

They were excellent negotiating they were better negotiators probably than the representation. But yeah, that that’s that whole thing was very, very challenging and stressful. But anyone out there right now that gets in any similar situation, just know that it’s most important to bring someone else in. Don’t try to tackle it. If you’re using other people’s money, definitely make sure that you’re in communication with everyone during this period.

You know, things happen. Things happen at job sites. I’ve never had it. Have you ever seen a perfect house being built with no mistakes ever?

Issa Hanna (13:25)
Yeah.

Kevin Kelly (13:26)
Doesn’t exist. Right. It’s all how we handle it. It’s all how we foresee problems and how we react either before they happen, if you’re smart and you don’t want to deal with double trouble as I call it, or after. And if you dealt with it after, maybe you’ll learn a lesson not to let things go, to be on top of your stuff. And if you’re like that, you will always find success across the board.

What I can tell you from NAR, right? We’re if you’re 30, under 30 is really the statistic, and you’re a realtor and you’re a guy, you represent 0.001 of realtors nationally, which is absolutely mind-melting if you think about it. So if you’re a young guy listening to this, there’s an entire world sitting right in front of you with people that want to work with you. And you would never know it. It’s I think the field’s about

60% female, 50, 60 or older, I think according to NAR. Not me, according to NAR, just putting that out there. so that feels very well established. But there’s a bunch of young people and even older people that want you. And they do. So if you’re thinking about getting involved in this business, do it. Do it. You’re gonna like it. It’s gonna be scary. But put yourself in a good group, whether it’s a team or a broker that really has your back.

Go for it. That’s my best advice for anyone thinking about it. Go for it. You have nothing to lose. Just do it right.

Issa Hanna (15:28)
Hundred percent. You miss a hundred percent of shots you don’t take. Real estate, one of the only being a real estate agent is one of the only fields where you can make life changing money, a lot of money in one shot, you know, without having that college education or the you know, the four even a four year degree. So you can have doctor lawyer money just by being a real estate agent and then you can shift like me and and Kevin do.

And you can j jump into the investing, your real estate license will make it a lot easier. So jump in feet first. Don’t be afraid. Put yourself out there, you guys, because you will make life-changing money you’ve never expected. So man, Kevin, we’re we’re rolling today. We’re we’re giving our young viewers inspiration and knowledge. So I I love that. Now I want to shift a little bit more and look down the road five years, a classic five year. Where are you gonna be in five years? So I look you up, Kevin. Where are you gonna be?

Kevin Kelly (16:27)
So five years. actually really working on something now. It’s gonna be this is more three years to start with, but I want to turn into a long term thing. It’s two things actually. One of them is I started working with elder law attorneys. So when people pass away right now, as as we all know, there’s a massive lack of inventory. Massive lack of inventory. so it’s starting to uptick a little bit, so don’t be too discouraged, which I am seeing a little bit of an uptick. but right now, a lot of people who are passing away, those properties are getting listed.

The kids don’t want the house where they live elsewhere. They want cash. You know, that’s that’s that’s real life. that’s a great place for leads. So I’m trying to build a business that, you know, I’ve I’ve done this one time successfully so far. So I I really did, I really thought it was worthwhile. Where we’ll come in, we will renovate the property so the executor gets, you know, top market value for the property, but we’re gonna front it. We’re gonna pay for all of it.

We’re gonna get it marked. So it’s and also I know what I’m doing. I wanna put something on market that sells and sells fast and doesn’t wait and they have to wait for six months because they wanted too much money and it wasn’t right. And yeah, screw all that. They have enough things to worry about when your parents pass away, or family or whatever it is. so that’s kind of what we’re trying to scale now. We’re trying to do that on a larger scale where we come in, new carpets, paint, maybe kitchen, maybe bathrooms, and then that house that might be three eighty.

You put 20, 30 grand into it, now it’s worth 450 or 475. so the executors are getting a lot more money in the end. For me, it’s lovely. And young guys, please try to copy this. Anyone out there, feel free. There’s plenty of elder law attorneys out there.

Remember something, it’s two paydays. You’ll start teaching yourself those tricks. I’m sure you know very well in real estate. The more paydays you can get, the better, right? People get very hung up on selling single family homes or this or that, right?

Not many people say, hey, like something I’m working on right now, why don’t we build neighborhoods? Why don’t we sell lots, large lots, unsubdivided to a builder? Why don’t we work on that? You know why, guys? Because every house that gets built there is going to be your listing after that. You just made yourself one big payday. Let’s say it’s a million dollar lot. You got 25 grand minus fees and com commission split, right? Well, let’s say you got 25 grand.

Well, guess what? If they build 10 houses there and they’re all million dollar houses, which

Is not rare today by any means. That’s twenty-five another twenty-five grand times ten. You just made yourself darn near three hundred grand in two years from all stemming from one sale. So those are the types of things right now I’m kind of leaning more into. They’re a little bit more intricate than just buying and selling a single family home or a condo. but that’s the five year plan. And I’d also very much so like to start building townhomes.

Issa Hanna (19:18)
I love that.

Kevin Kelly (19:19)
I think townhomes are great sales.

Issa Hanna (19:21)
Definitely great, great sellers, especially in the in the tough market. We have the high price market we have now. amazing three to five year plan. You’ve taken your knowledge. and like I said, you guys, that real estate license is is the base of the tree. So many branches. So Kevin’s already built a couple of branches. Now he’s making his own leads. He’s creating his own leads. and and and what a what an amazing idea because like you said, these people are dealing with death.

Don’t wanna they don’t wanna deal with rehabbing the home. You’re putting value add or you’re bringing value add to these people without stressing them out, getting the listing. and and you know, just through word of mouth, I can guarantee you’re gonna pull ten people just off that first deal that you’ve been able to pull. So man, amazing, amazing. And and guys at home, you want inspiration, you want whatever, take your notes down and listen to what Kevin’s saying because he’s literally scaling.

He’s branching and he’s getting into things that a lot of realtors and a lot of real estate investors don’t get into. So make sure y’all are taking those notes because th this is one of those episodes where we’re just oozing knowledge today. I want to get your advice now for these young guys on business relationships, growing your network. You know, that they just got their license. They’re like, okay, now what? I have no deals. How do I start?

Kevin Kelly (20:43)
Well, I’d say if you have no deals yet, the first thing you gotta do is find first of all, find a broker if you’re not if your license isn’t is not hung yet. Find a broker that wants you. Everyone says they’re gonna give you the world, and that’s that’s pretty accurate. Find ones with a record of giving people the world. You can look it up on MLS, everyone can. You can find out agent production. Look up some people in your office, ask some people, get to know people, go to the events. I don’t know one broker that won’t let you sit in on a meeting a month, right?

They they it’s a social network. I joined a club I joined a couple social clubs. You know, I didn’t really not for my most of it’s boring to me to be quite honest. One of them’s one of my golf club. I’m not big into golf. I mean I I like it, but it’s I don’t wake up and run to the golf course. But you know what? The guys that golf there and go on golf trips, they now know I’m Kevin the real estate guy. That’s how you get your listings. Put yourself out there, tell every family member.

Put posts on Instagram, Facebook. The worst thing you can do is worried about getting judged. No one’s gonna judge you. And if they do, they’re probably jealous anyway. You got yourself somewhere good. You know? Just keep it pump it. And and that word of mouth, like you were saying earlier, when one person finds out and you satisfy one person and it’s a good experience, and I mean a really good experience. You really cared, right? They’re gonna tell everyone. That that’s how it works. They tell everyone. You know, hey, James came in today and

He thought about everything. He sent me every document I needed days before closing. He went over every part of the closing documents. He explained how the taxes, the prorations, he did everything to make me feel like I knew what was going on and I was in control. That type of service will get you a lot of money down the road. And as you were saying, a lot of these people if you’re working with in this case, a lot of older people seem to be moving right now, statistically in in my area.

You get in one of their ears. How about this? Go to a 55 plus. I did this. Go volunteer. Do hot dogs one day, pool day. They think you’re nice, they’ll be charmed. Because young people, they we don’t get a great rap anymore, but there’s a plenty of nice ones and and kids with social skills out there that are undiscovered. Jump in. Go volunteer. Literally an hour of your time. And just tell everyone there. Give everyone a card. Tell them your website. Tell them whatever you have to, you know.

represent yourself where they can find you and get in touch. Really, your corporate real estate website’s probably, you know, the most formal looking. Make sure that they have it. And once you get your first deal and you get some money, you need to tell everyone, and I mean everyone, in like a three mile radius, hey, James just sold this house. Who cares if it cost you 500 bucks? Everyone now will know James sold that house and you’ll get a call. You’ll get at least one call.

Issa Hanna (23:35)
Hundred percent. when you’re dealing with clients, you guys, you know, like Kevin said, with with integrity, with honesty, right? you’re basically, you know, and you give that that client a really good experience, like Kevin said, you’re sprinkling seeds, right? you have a garden, you’re sprinkling these seeds. That one client is gonna sprout 10, 15, 20. You’ll be that family’s real estate agent forever until you decide to retire.

Give them the good experience. Don’t chase that one commission check. Be honest. Be up front. Share your knowledge. Do everything that you can to be the best agent you could possibly be for your client. Don’t look at the money, don’t look at the commission. That will come. treat your people right. And you will literally, like I said, grow a huge garden out of that. So man, Kevin, I I love when I get other realtors that are experienced in the field. We could kind of, you know, give them

give them all all this you know advice it gets me really pumping you know as somebody who and I’m sure you can attest when you’re successful in the real estate industry you just want to tell everybody right you just want to be like hey yeah here’s my knowledge I want to share it with you I want you to be here so man getting really excited because like I said this episode is just oozing oozing knowledge and because of somebody like you is super super knowledgeable. now I want to give you the floor and

If people wanted to get a hold of the best realtor, you know, this side of the Mississippi, where could they reach you at?

Kevin Kelly (25:10)
guys, if you need to find me, my website is kevin-kelly.com. The dash is there because there’s only 10 million Kevin Kellys. You know, not a rare name. I think there’s like 13 in my library. so kevin-kelly.com, that has my email, my phone number, my cell phone is 610-812-1589. That’s my personal number. If anyone that’s interested in getting involved in real estate.

Has any questions about any of the topics we discussed today, text me, call me. I’m happy to talk with anyone. If you’re interested in getting licensed and joining, be happy to set you up with that. But I’m here. I’m a real person. I’m in my early 30s. I started in my 27, 28. So I I I’m I don’t have a decade of experience, but I can show you. In fact, on my website, kevin-kelly.com, has all of my sold properties. You can see a couple of ones that were in sales.

And out sales. So those are the ones that were renovated. So t just take a look. You can figure out half of what someone does just from their sold properties. And guys, if you want an untapped field, sell those lots. Sell those lots to builders. Yes. You will get so wealthy you won’t know what to do with the money.

Issa Hanna (26:27)
yeah, I mean lot builders are always looking for subdivided lots, guys. It’s untapped market. and I just want to point out one thing that you said when I gave you the floor. Yeah. you could talk to realtors, you know, a lot of realtors. I’ve been a realtor for twenty five years. I always ask how many deals have you done? Because you can get your real estate license, close one deal a year for twenty five. You’ve closed twenty five deals. Guys like Kevin, guys like me, we’ve done hundreds of deals.

Make sure you guys check out Kevin, very knowledgeable guy, very personable, and can definitely help you with every real estate needs you need. Kevin, thank you so much for coming on the show. it was very, very it was a true honor to host.

Kevin Kelly (27:08)
Thank you very much for having me. I this was great. I enjoy talking to you. It’s such a fun topic. there’s so much money in real estate, guys. Just go for it. That’s my best advice. Just go for it. You have the support. You have Investor Fuel to keep you going and give you some great ideas and set you up. Got guys like me that’ll happily pick up the phone and talk to you. Take the step. It’s worth it. Let’s make some money.

Issa Hanna (27:32)
Jump in, guys. Just dive in. it’s friendly water. We’ll all try to help you. We all want to see you make money. So with that, Kevin, I super enjoyed our conversation. And to our viewers at home, if you enjoyed my conversation with Kevin, want to see more just like it, make sure to hit like and subscribe. I talk to people every day that could bring us different knowledge on every aspect of the real estate industry. Until next time. The Real Estate Pros, are out.