Real Estate Investor Shares How He Went From Wholesaling To Flipping Houses In Houston

Curtis Armstrong (00:00) Well, it really got real for me when ⁓
basically I didn’t make any income for almost a year in real estate just
because ⁓ I stopped marketing, stopped cold calling, got comfortable,
felt like I knew it all and then I had to reinvent myself. I had to slow
down, had to go back to get some more education, higher level of
education as well. So I started investing into myself a little bit more
in education and knowledge.

Joseph Crooms (01:57) Hey everyone, welcome to Investor Fuel Real Estate
Pros Podcast. ⁓ I’m your host, Joseph Crooms. Today I’m joined by
someone I’ve been looking forward to chatting with. His name is Curtis
Armstrong, who’s been making some serious moves in the industry. Very

stickler about ⁓ keeping himself focused. I’ll let him talk more about
that. Curtis, glad you’re here.

Curtis Armstrong (02:22) Yeah, thank you, Joseph, for having me. I
appreciate you.

Joseph Crooms (02:25) Thank you, man. I think our listeners are going to
take something away from how you’re approaching business. you told me
that you are a real estate ⁓ investor. is that the right term to use for
you?

Curtis Armstrong (02:37) Absolutely. So investor. ⁓ started off
wholesaling. I’m an agent as well, licensed agent in North Carolina. ⁓
started my first flip about a year and a half ago. So just investor in
general.

Joseph Crooms (02:49) Okay. And so let’s dive into this. So first of
all, for people who may not be familiar with your world, give us the
short version. What’s your main focus these days?

Curtis Armstrong (02:59) So my main focus is finding distressed
properties, off market properties, for a discount and basically making
sure that I can either disposition these properties either by finding an
investor that ⁓ buy it for a higher price or myself closing on it myself
and fixing it up and also just flipping it or rent renting it out.

Joseph Crooms (03:18) And what markets are you operating in? You you
mentioned that you have a license in ⁓ North Carolina, I believe, and
that you also said that you are but you live in Texas, so has your
market expanded?

Curtis Armstrong (03:31) So on market switch, ⁓ so I sold and bought
over 30 properties for as wholesale deals within the past three years,
primarily only in North Carolina. ⁓ I just switched over to Houston,
Texas. I moved out here about two and a half years ago. And for the
first year and a half, I was just kind of confused with the market. So
it took me about a year and a half to get on my feet out here, and now
I’m just primarily focusing on Houston. So right now, that’s my primary
market right now.

Joseph Crooms (03:58) So it sounds like you have like a total of like
almost four years of actual work. Is that correct?

Curtis Armstrong (04:04) Absolutely, yes sir. It’s just twenty twenty
two.

Joseph Crooms (04:06) All

right, and those sturdy properties, how do they translate into revenue
for you?

Curtis Armstrong (04:12) So it’s different. you starting off at
wholesaling, you’re not getting a ⁓ big chunk of the pie when you’re
starting off just because you’re finding deals that ⁓ probably just low
in income. So therefore you’re making four thousand dollars, making
eight thousand dollars some deals, some deals you’re making fifteen
thousand and it varies. So the lowest I made on one particular deal was
thirty five hundred dollars, the most I made was forty two thousand.

Joseph Crooms (04:37) And what would you say your monthly ⁓ revenue or
volume of of income ⁓ that you have now on a monthly basis?

Curtis Armstrong (04:47) I would say on average, I would say typically
each deal is around eight thousand dollars on average right now.

Joseph Crooms (04:53) And how does that translate to, you know, is how
long have you been operating at that level?

Curtis Armstrong (05:45) Well it’s up and it’s up and downs because when
you first starting off and you’re in the market, as I was in North
Carolina, very familiar with the market, you switch your markets and it
takes time to pick the business back up. So as of right now, it’s just ⁓
picking everything back up from basically a new market. But when I was
back in North Carolina, ⁓ it was a six figure income a year.

Joseph Crooms (06:06) Okay, okay. ⁓ so ⁓ th you know, you call that that
that’s not easy, especially in this climate. What’s been the key to
keeping your machine running smoothly?

Curtis Armstrong (06:17) Well the key is just basically just being
disciplined and knowing exactly whenever, you know, you closing a thirty
thousand dollar deal, knowing that you have to get back on the phone and
stay consistent. And that was a part of my learning process, my first
three years. I would close the deal and then all of a sudden I take a
month off and then start back. It’s just inconsistent. So I feel like
just dedication and being more consistent.

Joseph Crooms (06:41) So what have you learned from ⁓ from your North
Carolina ⁓ real estate and now that you flip to ⁓ Texas, what have you
learned?

Curtis Armstrong (06:56) So I learned that ⁓ in North Carolina it’s a
lot of gatekeepers, meaning that a lot of information is not displayed,
the proper information is not correctly ⁓ presented. Even in meetings, I
was going to boardrooms, going to meetings, but still was lost for some
reason. And once I came to Texas about two and a half, three years ago,
my learning curve shaped and ⁓ just started getting more knowledgeable.
⁓ circles started changing and then all of a sudden now it’s just more
say so a full scope of business at this point.

Joseph Crooms (07:26) And and in what way has it changed, can you be
more specific?

Curtis Armstrong (07:30) Absolutely, because primarily in North
Carolina, I was focusing just on wholesaling, basically just finding a
distressed property or a property for a discount. And I was assigning it
to a cash buyer. And every deal I’ve done in North Carolina, it was
primarily just making a quick cash. But since I’ve been out here in
Houston, I picked up the more of a flipping knowledge. So instead of
wholesaling it and getting rid of it so quickly, knowing exactly how to
calculate construction risk, market risk.

And knowing exactly risk to award and the time value of money as well.
So some deals it’s good to wholesale and some deals it’s good to flip.

Joseph Crooms (08:07) Mm-hmm. So ⁓ say in the last six months, how has
that affected your revenue?

Curtis Armstrong (08:16) So ⁓ at instantly, it hasn’t affected it
instantly. But therefore as far as like knowledge wise, the past six
months, just been getting that experience, getting more familiar with
the market, walking houses, getting more familiar with the contractors’
numbers and lining everything up within the business, my lenders, my
appraisers, making sure everything is aligned. So once I find a deal, we
can be ready to close within the next two weeks.

Joseph Crooms (08:41) And you talked about your the your your your
vendors and your idiot do you consider these people part of your team?

Curtis Armstrong (08:50) Absolutely. So they are part of my team. The
reason why is because without them, the deal won’t be able to get close.
⁓ I need my contractor to make sure the bid is correct. I make sure need
the inspector to make sure everything is ⁓ accurate when it comes down
to inspecting a home. The appraiser have to make sure the numbers are
right, agent have to make sure that ⁓ whatever we can think we can sell
it for on the back end, we can get that number, days on market. It’s a
lot of different factors with the team that ⁓ makes up the business at
this point.

Joseph Crooms (09:19) And how many deals have you closed since you’ve
been in Texas?

Curtis Armstrong (09:23) Since I’m in Texas, I’ve closed four deals.

Joseph Crooms (09:26) four deals. And ⁓ and how many of those deals from
⁓ North Carolina are still paying you?

Curtis Armstrong (09:34) ⁓ one.

Joseph Crooms (09:35) one. So you see about five deals. How much is this
has that translated into ⁓ into value? How much would you say that
you’re making on a monthly basis? Night right now. Team is in place. And
and matter of fact, who’s on your team?

Curtis Armstrong (09:50) When you say who’s on my team, you ask what’s
your question? You ask two different questions then. Yeah, yeah.

Joseph Crooms (09:54) Yeah,

I’m asking ⁓ let me back up. Who’s on your team? You got ⁓ property
managers properly?

Curtis Armstrong (10:34) so you when you ask food on my team, so it’s
different because I’m in Houston primarily now. So my team back in North
Carolina is more dissolved for for the most part, right? I’m talking
about.

Joseph Crooms (10:45) I’m talking about in your new team.

Curtis Armstrong (10:50) Right. Okay. I my new team it it involves my
hard money lender, my private money lender, my agent, my contractor, my
appraiser, my inspector, my architecture, my structural engineer, and
also my title company as well for the most part. But I believe and I
have a mentor as well, so

Joseph Crooms (11:10) ⁓ you know, ⁓ that’s not easy, especially in this
climate and then we we spoke about what’s running your business smooth.
So now ⁓ I know that’s the moment when things just got real. When did
things get really real for you n now in Texas?

Curtis Armstrong (11:28) Well, it really got real for me when ⁓
basically I didn’t make any income for almost a year in real estate just
because ⁓ I stopped marketing, stopped cold calling, got comfortable,
felt like I knew it all and then I had to reinvent myself. I had to slow
down, had to go back to get some more education, higher level of
education as well. So I started investing into myself a little bit more
in education and knowledge.

So now that I’m on the phones in the past three months I’ve

locked up about three deals. ⁓ trying to flip them for a majority of the
part, but the numbers just didn’t work out just because of the rehab
costs ⁓ and a market risk as of right now. So just trying to find that
perfect deal right now that that makes sense to me far as number wise.

Joseph Crooms (12:16) Do you deal in residential and commercial?

Curtis Armstrong (12:20) So that’s a funny thing because same thing with
flipping. when I was wholesaling primarily for the first three years, I
was still going to flipping classes and I was still learning ⁓ along the
way. So now that I’m primarily flipping and part-time wholesaling for
the most part, then that’s how I’m same doing the same thing with
construct I mean commercial. I’m still dibbling and dabbling with
learning the information, but I’m not doing any transactions. I’m not
marketing, prospecting or doing anything with it.

Until I master ⁓ the flipping business, single family only.

Joseph Crooms (12:55) Okay. ⁓ so that’s the kind of stuff that people
don’t talk about enough. And honestly it’s what separates the folks who
just dabble from the ones who stay in the game long term. Let me ask you
this. What do you focus on solving or scaling next? What’s your next
real goal?

Curtis Armstrong (13:13) So my next real goal is to ⁓ basically try to
find and lock up one deal a month and close one deal a month right now.
⁓ my biggest year was thirteen deals in a year back in twenty twenty
three. ⁓ but at the end of the day, that’s when the market was very,
very hot. ⁓ but either way it goes, just putting in more time and
knowing that, you know, the three to four years I’ve been in the
business has just not been nothing but experience and knowledge. And I
can just learn off that and build off that. So right now, just
consistently marketing.

prospecting on a daily basis and trying my best just to lock up at least
one deal a month right now. And if I can just do one deal a month and
flip a few and wholesale to others, then I think I’d be a happy man in
twenty twenty seven.

Joseph Crooms (13:55) Okay? That’s big especially when you’ve already
got ⁓ the foundation down, that next move can either ⁓ compound things
or create chaos depending on how you play it. Now I know a lot of our
listeners are either early in their journey, ⁓ Curtis, or looking your
level up, and I think they’re gonna benefit from hearing this. When it
comes to building relationships and growing your network, what’s made
the biggest difference for you?

Curtis Armstrong (14:22) biggest difference for me is just always
bringing something to the table. I think a lot of people want
information, but they willing they’re not willing to give up anything. ⁓
you have to invest in yourself. a lot of information is not free. The
free information that’s on YouTube and that’s online, it probably won’t
put the pieces to the puzzle together for you. It is probably how you’re
more confused. So my way and my method was I actually ⁓ hired a mentor
in this business and ⁓ I still have an another mentor right now that’s
guiding me and

analyzing all my deals before I hop into any flips or anything in
Houston that’s been flipping for over twenty years in this market. So
just finding someone that with that valuable experience, but also
bringing something to the table.

Joseph Crooms (15:44) how is your philosophy developed as through all
your experience? What is your philosophy approaching business now?

Curtis Armstrong (15:51) Yeah, just gotta be a win win for everybody. So
for instance, if I can find a good deal, then that means the contractor
can win because he gets to feed his family that month or two. And then
he get to pa take care of his his staff as well. So they get to feed
their family. The lender, they’re winning because now they have a loan.
They charge an origination fees and points and interest. So now they’re
feeding their family. The appraiser is getting a good deal, the title
company is closing, so everybody’s winning.

But my thing is who who who starts the process of this winning it has to
be somebody. And that somebody can be you, just like it’s me. So if I
find a good deal, then I have to put the pieces to the puzzle together.

Joseph Crooms (16:36) For someone just starting out, what is your advice
to them?

Curtis Armstrong (16:40) So when starting out, I would just say a lot of
self-education, self-knowledge, finding a mentor, meaning by
self-knowledge, finding someone that you know that has experience doing
whatever you’re trying to do. No matter if it’s residential or
commercial, wholesale and flipping, ⁓ Airbnb, whatever you wanna do in
this business, and it’s a lot to do, but just focus on one thing.

Joseph Crooms (17:03) And that one thing would you say, ⁓ your niche is
w how would you just say, Hey, if you are you saying you find you you’re
good at something, w what are you elaborating on and saying when you
find

Curtis Armstrong (17:15) Yes, because initially I started off
wholesaling for three years. I didn’t flip any properties and then all
of a sudden I came across one good deal where I just wanted to flip, but
I didn’t know the business as well because I was just wholesaling. So I
basically paid cash for the house. It wasn’t the numbers seemed good on
paper, but when you really put the ROI and everything inside the deal,
it just probably don’t make as much sense.

Just because I didn’t have the proper knowledge to flipping, but if you
just wanna learn how to wholesale, if you just wanna learn how to flip,
if you just wanna be an agent, just do that for the next two to three to
four years and then you can always transition and dive and dabble into
other sectors of the business.

Joseph Crooms (17:59) Curtis, we’re coming to a close. I want you to
describe wholesale flipping or an agent. I want you to put it in your
own words. Wholesale.

Curtis Armstrong (18:07) Okay.

So wholesale is you finding a d you find a distressed property for
undermarket value and you’re selling it to an investor or a flipper that
can put the work into the property in order to produce an outcome for a
family to live in. So a wholesaler, you’re not doing the actual
construction part, you’re just finding the deal and letting a investor
or the flipper put the construction part into the deal.

Joseph Crooms (18:35) the flipper.

Curtis Armstrong (18:36) The flipper is the person that buys the deal
from the wholesaler or they buy it from an agent. ⁓ and they basically
actually have to do the construction part and get the loan and the
financing ⁓ line in order to make sure the numbers make sense so it can
profit from the deal and make sure the family have somewhere safe and
habitable to live. A real estate agent job is to make sure that they are
the ⁓ intermediate between the sellers and buyers.

Joseph Crooms (18:58) And a real estate agent.

Curtis Armstrong (19:06) Within the market, so they just make sure that
if a seller wants to sell, they represent the seller to make sure
they’re in their best interest. And also if a buyer wants to buy a
property, just making sure that everything’s in the best interest for
the buyer. And that’s just the way they separate it for us the agency.

Joseph Crooms (19:22) Wow, ⁓ that’s that’s huge, Curtis. Thank you so
much for sharing. Yeah. so you can’t face relationships in this place.
All right, before we wrap up, if someone wanted to reach out to you,
connect with you, maybe collaborate or learn more about what you’re
doing, what’s the best way to reach you?

Curtis Armstrong (19:25) You won’t.

You can reach me ⁓ you through Instagram. That’s the best way as of
right now, I would say. ⁓ or email address is Kurt the Real Estate
Slayer on Instagram. It’s K-U-R-T, period T-H-E, period, R-E-A-L,
period, T-H-E, the Slayer. Kurt the Real Estate Slayer. And ⁓ my my
email address is Armstrong with an S on the end. So A-R-M-S-T-R-O-N-G-S.

R-E-A-L-T-Y Realty. [email protected]. And that’s the best way
to contact me right now. If you want to connect, have any questions? ⁓
if you need anything, just let me know.

Joseph Crooms (20:21) Won’t you run it one more time? Just for those
that would when you started giving they looking for a pen. So run it
back for them.

Curtis Armstrong (20:27) Okay, but the Instagram is Kurt K-U-R-T the
real estate slayer. Period T H E. Period R E A L. Period E S T A T E.
Period S L A Y E R. Kurt The Real Estate Slayer. And then the ⁓ email
address is Armstrong’s with a S on the N S on Armstrong, sorry, A-R-M-S.

T-R-O-N-G-S-R-E-A-L-T-Y at Gmail.com. Armstrong’s Realty.

Joseph Crooms (21:02) Perfect. Well listen, I appreciate your time, your
story, your philosophy that you are constantly developing, and your
perspective that you have now. We need more people in spaces who are
doing the right thing. Thanks again for being here, Curtis. ⁓ all for ⁓
for those of you tuning in, I know you got some value from what Curtis
was sharing with. Make sure you subscribe. We got more conversations
coming from operators just like Curtis Armstrong, who are out there
doing real businesses.

and also learning how how to expand his business and gaining that
knowledge. We’ll see you on the next episode of Investor Fuel Real
Estate Pros Podcast.