Unlocking Real Estate Success: 5 Strategies for Vacation Rentals

Michael Stansbury (00:00.558)
Hello everybody and welcome to the Real Estate Pros Podcast. My name is Mike Stansbury, I’m a very special guest, and he’s on the East Coast. Mr. Adam Denny, Adam, how are you, sir?

Adam Denney (00:19.396)
here.

Adam Denney (00:32.095)
I’m very well and busy these days.

Michael Stansbury (00:34.434)
Very well and busy today. Adam, thank you for being on the Real Estate Pros podcast. But first, we gotta pay the bills and let everybody know that Investor Fuel, the sponsor of this podcast, we help real estate investors, service providers, and real estate entrepreneurs 2 to 5X their businesses to allow them to build the businesses they’ve always wanted to and allow them to live the lives they’ve always dreamed of. Speaking of dreams, you live on the beach, Adam, is that correct? On Myrtle Beach, Charleston, where are we at?

Adam Denney (00:59.925)
It is, yes, my, don’t live right on the beach, but I’m about five miles away. 10 minutes tops with traffic.

Michael Stansbury (01:06.752)
Okay, so is that a place that you go to a little bit to just kind of hang out by the beach a little bit since you’re near it or what’s that look like?

Adam Denney (01:14.079)
Just a little bit, you know that dream of always living and going to the you know, you make all those plans and and Thoughts of you know, let’s go on vacation over to the beach when you live here. It’s actually better than the plans. So

Michael Stansbury (01:27.032)
That’s awesome. Well, Adam, always interested in this. Before we get into kind of what you’re doing now in your market, tell me the origin story. Where was Adam before real estate and what got you into the wonderful world of real estate investing and all the things that come with it?

Adam Denney (01:41.239)
Well, actually, Mike.

It all started back in the day when I was probably in junior high in high school and we had three TV channels and I got tired of watching cartoons and this old house had started way back in the day. And as a kid, I watched it and I’m like, my God, I may have some kind of career or, you know, connection connected to the real estate business. And how I got started, my first sales job was selling women’s shoes in the mall in my teenage years while I was in high

And I knew I wanted to get into the real estate business and across from me and where I was selling shoes back in the day was a woman who worked for Century 21 and I got chatting with her, how do you get into the real estate business? She said, you take this 40 hour class, you find a broker, dispensia, and you literally get into the business. And I’m like, great, back in, and this is 1985.

So as a result, she said, go talk to my brokers. And I did. And these were people in their 60s at that point. And I said to them, I’m going to be graduating. But what they didn’t know when they assumed that I was in college, not in high school. And so they said the same thing. They said, if you can pass the test and

you know, we’ll sponsor you for your license and I’ll be damned if I didn’t pass the test at 18 years old and a senior in high school and started on my way in college part-time and selling real estate part-time. Way back in the day, banking and all the guidelines weren’t that strict and I remember to this day, Citibank had a mortgage. It was 10 % down, 10 % a year with a 10-year balloon and no dock.

Adam Denney (03:25.327)
all the federal guidelines weren’t there. But you could only buy three properties. And by the time I was, after I turned 19, I bought my first house at 19 years old and lived in it. It was a two family, lived in it, ran out the rooms in the other side and was making money on my first deal. Two deals later, actually I got into trouble. I wrote up the contract wrong.

and my brokers like, can’t do this stuff anymore. I said, great, I think I’ve learned what I’ve learned from here. And I dropped my real estate license probably a year and a half later and just did investing. And then,

87 came along, Reagan cut the capital gains rate or made it so real estate was an investment, the market changed. I got into marketing at that point because I wasn’t old and mature enough to figure out what do I do with this real estate. I didn’t lose the properties. I just couldn’t make any money on how to do them being I didn’t have the 10, 10, 10 financing. And then obviously back then the internet and finding out how you do creative financing and really real estate investing was far and few people to come by. Literally, I had to find people who were real

real estate investors and you know how did you do this and how did you do that and I just didn’t come across them not having a license anymore. So I got into marketing. I literally met a guy and he was telling me about advertising and you’re probably just a little bit younger than me but back in the day did you ever get the school folders with the advertisers on it? Well I met a guy that did that and he taught me how to do that.

Michael Stansbury (04:50.317)
Absolutely. Yes, sir. I know exactly what you’re talking about

Adam Denney (04:55.937)
And I got into selling school folders for, you know, giving the students for free. And I had to learn door knocking and the selling. And he showed me a bunch of that and I was just young and dumb. I didn’t know, but I picked it up really well and then hiring two people to do it, doing it for me. But our niche back then, if you remember with Reagan was just say no and don’t do drugs. Well, our folders were printed, especially we had a license with the printer to print those. And we used to do what was called the drug awareness program that, you know, teachers would offer.

and say this is what they had things to smell like marijuana that weren’t and these are the kinds of drugs and so that was our pitch to schools is that if you let us sell advertising on the folders we’ll give them to for free and we’ll tie it into a drug awareness program and that went off pretty well and I was on the road quite a bit and then I used to go to small towns you know real small towns a couple thousand people and and so the school was the anchor for the community for the most part.

And then after a year and a half or two years of doing this and doing pretty well, I’d made some money and had a brand new Corvette. And I was back home where I lived in upstate New York actually. And this guy had a Lotus Esprit. And I’m like, how dare him? He parked out front and he was in his forties and his parents, he was so good and his parents’ family was so good that they owned a swimming pool business selling swimming pools in upstate New York, which only has a summer of about 30 days.

Thank

Michael Stansbury (06:24.885)
Literally, to Eskimos.

Adam Denney (06:26.703)
And so they had sold it and he had some money and

and, really this is where I honed or learned the skills that have made me truly successful to this day, because this guy had bought in, from a friend of his who had got emphysema. had an advertising business that sold coupon advertising on grocery bags. And he had just taken it over and, he had brought on another guy before me that was a corporate executive on how to turn your business. And this is way before franchises were big and licenses, on how to, how to do

your business and turn it into a franchise and how to license it and you know how to have this McDonald’s franchise so that you had a checklist and everything was identical and you know no matter where you did it was the same and I learned a tremendous amount from these two guys that taught me that end of it and marketing and big business which I had no experience other than selling advertising and I did that for about three or four years and I just have 50 salespeople that work for me that was my job as the third partner in this business I had the knowledge and

know how and the ambition to hire and fire and train these people. And so that was my job to go out every week, find out why they weren’t producing and from the good ones, what was working and our sales presentation. And really a great aspect of why I’m successful today was from that business because we were selling this for very expensive money. was $1,000, $1,200 for bigger ads on the front of the bag, $3, $400 for the smaller ones around the sides of the bags and how that bag business worked that you take

a quarter million bags and that was our pitch to to the pizzeria or the hair salon or whatever. If I were to take your business card and drop it into a quarter million bags down at the big would that get you any business? Well we just perfected and honed it to the point we’ll put your business card or ad on the bag and that’s how we sold the advertising. Back then credit cards had just came out and we came up with the idea of to finance the ads so now we went into a new business or a real small

Adam Denney (08:32.215)
business in small towns, it wasn’t a matter of we would offer two prices. Here’s our finance price, here’s the cash price. And the close for the sale was pretty easily at that point. Most people were very interested in what we did. It was just a matter of the money. So Mike, how would happen? You know, we’d say, which price do you like and which one do you want to do? like, well, could you do the cash price with financing? And that was always a yes.

because this was a commission only business for our salespeople. And now we had offered a way in negotiating to let them feel good. We still made money. and, but I got tired of doing that. I was young. I had gotten married. I had a son or on the way or had a son at that point. My wife didn’t want me to be on the road as much. I cashed out of that business. Thank God, because paper bags went away a couple of years later and I’d moved to Atlanta and I got back into the real estate business. But learning how to finance and pitch financing to

to business owners and door knocking really has made my business successful today because those are the foundations or the basis of what I do in the real estate business that most other people don’t. And it’s not, you know, it’s not.

Michael Stansbury (09:41.614)
The skill to talk to people and to do it at the amount of time and attention that you’ve had, the numbers, it just pays dividends because again, the things they teach you in books are what they teach you in books, but you’re out there actually utilizing those skills and learning. And I’m sure you may not have a master’s in psychology, but you’ve probably been around enough people to know that there’s different types of personalities and there’s different ways that they’re sold.

Adam Denney (09:46.701)
members.

Adam Denney (10:08.185)
share.

Michael Stansbury (10:10.258)
And so you get to Atlanta and then Atlanta begins the new, we’re back in real estate investing. What did that look like?

Adam Denney (10:19.267)
Well, actually, I was doing the printing and marketing business in Atlanta, and it was a bigger city. It just never worked great in big cities. And actually, my wife did not like it. And this is another example in life on how you can turn bad things into good things. And my wife did not like it, packed up, and took my son and moved back to New York, and literally left me with $16 in the bank.

Michael Stansbury (10:42.829)
Mmm.

Adam Denney (10:43.721)
And so thank God I had my business, even though we weren’t making much money. But I met my current wife of 27 years actually, 30 years I think we’ve been together. literally I had a…

couple dollars in the bank and my wife was a recent graduate of pharmacy school and came to Atlanta because it was a pot place to go and some place different. She had been to school and was from Pennsylvania, actually not far from where I was in New York. And, you know, I was so broke back then. I’ll never forget. My wife said me and my partner in the printing and marketing business had rented this house and we were going to live there. And I met my wife and a couple months later, my wife even sold the house from out under me. It was in her name, you know, trying to protect assets.

And so I didn’t get any money from that and we were gonna move in there and my wife said no you’re gonna move in with me and which I did and then Just the inspirational story at that point a couple months later I was so broke my car broke down I had no car and I helped my wife buy a brand new car which her dad had cosigned for because she’d just taken up a job and my wife had a job back then in 1997 make it on a hundred thousand dollars, which I think about today. I’m like that was a lot of money and so

She was able to, you know, finance me and believed in me at that point. And when my car broke down, used to, I used to have to go and ask her, say, Hey, I don’t have any gas money or lunch money. You think you could give me a couple of dollars. And I told her my background and I’d been successful and made some money. And she believed, she’s like, how much money do you want? And she used to give me money to, to go to lunch. And I used to take her to work and take her car cause she worked 12 hour shifts. So, but I told her, said, listen, we’ll, we’ll own the house within a year or so. And then from there, you know, I’ll make money in real estate.

We bought our first house and I bought it on terms owner financed. And, uh, I made, I don’t know, I had about, I got a $50,000 line of credit from that. And then I, and I told her when we bought the house, we’ll live in a mansion within, within a year or two and I’ll be damned. Less than a year later, I ended up buying a 6,800 square foot mansion on three acres in the lake owner financed. Um,

Adam Denney (12:53.743)
You know, needed a lot of work cosmetically, but we lived in some huge mansion and I was only 32 years old and she was like 27. And my wife’s friends used to come like, oh my God, how do you afford to live in this? But we got a great deal on it. But I owned that house when I moved to Atlanta. I lived there for 22 or 23 years.

Michael Stansbury (13:13.899)
Wow, okay, so you stayed in that same house for that long and wow, that’s pretty awesome. Yeah, absolutely and probably also you had a good, mean, people don’t realize this and this is a skill set I can see that you hone this because if you’re door knocking and talking to people, owner financing is not somebody that people are very good at selling unless you know how to talk to people and know how to make the terms work for everybody. So that’s really…

Adam Denney (13:17.846)
It was hard to replace it. Where are you going to give us?

Michael Stansbury (13:43.596)
that’s really good, kudos to you. then you just had a, it sounded like to me had a vision for how your life was gonna head out, especially after you went through the valley of your wife leaving and your son leaving and then all these things happened. So that leads up to now today. So how long have you been in this new market and kind of what are you doing today to do, what’s the deal flow like and what kind of deals are you looking for in that market?

Adam Denney (13:48.505)
Sure.

Adam Denney (14:09.763)
Well, actually, one of the reasons we came to Charleston is, as I was telling you before this,

during the crash of oh wait, or actually back in 2004, I went to a class by a local real estate investor and the class was this new concept called VRBO or VRBO the company. And they said, you need to buy property with, you know, it’s by a lake or if you got a pool or some entertainment area or whatever. And so I hadn’t mastered creative financing or subject to at that point, but I kind of knew how to do it. And so I went out dumb as I was thinking, know, you know, being dumb has always been a benefit not knowing.

means that I have no limitations on what I can do. It’s just what people mean I can’t do and I don’t really care what they say. And so I went out and bought eight of these vacation properties and they were actually making a profit. had somebody that helped me run them and they were on the North Georgia mountains which is like an hour or two outside of Atlanta. And once I’d done that and figured that out, I bought

Michael Stansbury (14:50.647)
Yes.

Adam Denney (15:13.571)
When the crash happened in 08, I’d lost most of my rental properties and some of the properties that owner financed. Actually, the only thing profitable before me was the vacation rental business. And so what I realized, you couldn’t buy a house, because I was buying houses. I had funding and money to buy houses on the courthouse steps or take them over with creative financing. And I learned from Lou Brown. I was one of Lou Brown’s first students back in 2003 or 2004, back when he had no coaching. this is what

offered and then you know that’s why I’m successful because back in the day he had no coaching when he took my $6,500 he said thanks for the money here’s your books and classes and you know

And I will never forget when I bought that class, he offered it for the first time in LA. And I went out there, never been to LA, and took the class. And all I really wanted to know was how to fill out the contracts. And so it’s a very intensive three-day class, which I’m personal friends with Lou Brown to this day. We lived in the land and not far from each other. And the class, even to this day, when he does, and I’ve taken that class 17 times now over the last 20 years, basically.

He didn’t offer any training or thought on how to fill out the contracts or forms. And I’ll never forget, I sat there and he went over for about 10 minutes. like, we’ve got to do it the last day or something. Well, he never did. And there was no coaching afterwards. I mean, he had no way to contact him, no questions or whatever. And so I had an attorney who had helped me close all my transactions and the creative ones. And I told him, said, do you think we’ll be able to figure this out? And he said, great. Cause I’ll never forget, my wife had come into my office and I was a millionaire from doing the real estate business.

Adam Denney (16:54.993)
She said, did you waste money on another class or course? know, and I’m like a BS and I said, yeah, definitely. I’m going to make something out of this. my attorney Mark and I figured it out and I ended up buying 10 or 11 houses that first year. And at that point word got out that I knew how to do this. And people used to come to me and say, how do you do this? And I’m like, well, I can’t do it for free, but I’ll do it for a consulting fee. And so I’ve been doing that ever since. And that’s why we’re talking.

Michael Stansbury (16:57.869)
Yes, yes, I gotta learn something new. Yeah.

Michael Stansbury (17:23.661)
That’s great.

Adam Denney (17:24.783)
So, and after the crash happened though, what had happened if you were, how long you been in the real estate business?

Michael Stansbury (17:30.861)
Since 2000, I’ve been a realtor since 2002 and investors since 2008 like right after the crash I barely I got in under the wire

Adam Denney (17:39.661)
Well, as you know.

You couldn’t buy a property and flip it. There were still undetermined values. You know, the only thing that made sense was creative financing and being, when I looked at my assets and my spreadsheets, what was making money, the only thing that making money were my vacation properties. And this was still a new business. Airbnb hadn’t even come close to coming out, but I was renting properties up in the North Georgia mountain. There was a shortage of hotels and properties and this kind of property and they were still profitable. So I sat down and said, I need to start buying these properties because for one,

Price would not matter. I’m looking at cash flow from rentals. And my experience from having 53 vacation rentals is that they cash flow for usually three or four times what a renter would pay, and especially up in the North Georgia mountains. And so that literally is what happened. I went up to the North Georgia mountains, knocked on doors, put my name out there. Most of the deals I did were done over the phone. And this is a very important aspect. Back in the day after the crash,

of the 53 properties I bought, 50 of them, they gave them to me for free or most paid me to take them because they were upside down.

Michael Stansbury (18:52.519)
I understand, okay. So, you were taking over a note or, yep, okay, that makes sense. Mm-hmm.

Adam Denney (19:00.045)
Yeah, typically, note, some are owner financing. know, it depended on, you have to read the people. Some don’t want you paying the mortgage and some do.

Michael Stansbury (19:08.397)
And these were, so these were some subject twos and then, but basically what you’d figured out based on your numbers is that if I could VRBO them or rent them out because they were vacation rentals and these, and I’m assuming that these were mostly owner occupied houses before you got them.

Adam Denney (19:25.475)
No, no, these were all, actually that was my criteria. I would drive to areas I wanted these properties and I’d look for the chipped paint, the growing grass, the, you know, the kind of rundown cosmetic looking properties and then skip trace them and we would call them up. you know, ironically, Mike, the thing I would hear a lot, which is still surprised me to this day is I was praying to God somebody would call me about, but I’m like, it was never for sale.

I heard that so many times that I was the salvation for their problem. And that’s really what I am as a problem solver for doing this business. And that’s why people are willing to pay. I’m like, you don’t have it for sale. Your market value is upside down. So you either have to come up with cash or stop making the payment altogether. And I saved quite a few people from foreclosure as a result of that. So I’m like, if you’re making it, and that’s how I pitch, I’m like, so time on market, six months, 10 % to sell, you’re upside down 70 or $80,000.

the mortgage payment for three months, six months, nine months, twelve months, whatever, handover title, I would sell off all the stuff inside and bring it to date, you know, with redoing the property and rehabbing it and furnishing it with, you know, what I knew would work for my experience. And then the great thing is they’d either paid me, a couple did, but most made the mortgage payment for anywhere from six, eight, nine, twelve months for me. So I didn’t have any expense except for the utilities because they were going to make the payment anyways and lose

money. which is the worst evil?

Michael Stansbury (20:52.907)
Right, yes, that is tough. Okay, that’s very, very interesting. then, you’re consulting people now and then you’re in this market in Myrtle Beach in Charleston and you’re doing similar things there.

Adam Denney (21:08.739)
Well.

How I ended up in Charleston in my real estate agent days, as you know, all the training they offered, some speaker consultants said, came in and said, listen, you could put a parachute on my back and put me on a plane and drop me over a town of, you know, a hundred thousand people. And I guarantee you without money or credit that I’ll find some business or some business partner and I’ll be making a hundred thousand dollars. And that always stuck in my mind. And so I’m like, well, let’s go to Charleston. don’t know anybody. Let’s see if I’m truly the person I think I am, at least they have money now.

That was way easier, starting with $10. And that’s what I did, because we could have moved to the mountains. owned several. So the thing about my vacation property business I figured out is each year I go in, I go in by five or six. And that way of the same maid, the same maintenance guy, the same yard guy. being I live in Charleston now, I have an hour or two from Atlanta. I find a sharp one of those people and I make them like the manager for that area. And so that keeps things kind of fine.

Michael Stansbury (21:40.4)
Right,

Adam Denney (22:09.105)
financially viable for me to pay for them and maintenance them and especially when I’m not there and then also to The reason I don’t have 53 anymore is when I had eight or ten or twelve in a certain year I’ve sold off knowing I was coming here. I’ve sold off is like a business the the vacation property business and owner financed it to new buyers So here’s a ready-in-the-box business with a cash flow and financing and all you have to do is take it over so it made it very appealing for me to

buyers and I’m probably going to be unloading most of my other properties like that over the next three or four years because I’m looking to gear down to to retire.

Michael Stansbury (22:47.082)
Are those, this is just a side note, are those most near in Georgia, North Georgia still or?

Adam Denney (22:52.397)
Yeah, they’re out. Yeah. They’re in, LJ blue ridge, the Lanaga, Helen, Hiawase and Highlands, North Carolina. And if you haven’t been to the mountains of Georgia or North Carolina, Highlands is like the Beverly Hills of, of the mountains. It’s like,

Michael Stansbury (23:08.821)
Right, yeah, yeah, beautiful. may offline, may have a buddy of mine and we just did a deal in Helen and there may be some interest there, maybe some synergy there. But you’re back in this new market and you’re having fun in there, you dropped in a little more than $10 and so yeah, me what are you doing today? Are you still using the same skillset?

Adam Denney (23:28.749)
Yeah.

Adam Denney (23:33.773)
Well, yes, and blindly I came over here, didn’t care. My wife was not moving to the mountains of any area.

because she liked shopping and civilization. So we had picked Charleston after all the beach town. We’d spent a couple of years researching which beach town to be in and really Charleston and Savannah are the only two open year round with culture, airport, that kind of thing. And we ended up going with Charleston because we liked it and it was on the coast where Savannah and the beach is not as nice in Savannah and the city’s way, you know, further out from the coast. and, so I came over with the full intention of my expertise, knowledge and know-how of doing the vacation business, but it is very strict with permit.

I never researched any of this. You have to have a permit and just too many rules. And then the price point is super expensive over here. But most importantly, my vacation property rentals up in the mountains, we are booked 90 days out, 90 % occupied.

And I don’t make as much money, but I sleep at night knowing that I don’t have to worry about paying my bills. And so that’s something we figured out over the last 20 years. Then in addition to that,

The season is so short here. If you don’t make your nut from Memorial Day to Labor Day, God help you because you ain’t buying property that you’re going to rent out here for less than a million dollars or more. So, you know, to take over the mortgage payment and hope, and there’s a lot of competition. So what had happened, Mike, and what I’m doing now is kind of a similar thing. And, but it’s what I’m finding back after the crash is that here in Charleston and Myrtle beach, even more so is there’s a lot of upside down property. And what I mean by

Adam Denney (25:13.643)
that is when COVID happened and there’s so many people moving here that the builders are building a lot of new houses. So due to COVID and the cost of materials, what they were three or four years ago, if you bought a house in the last three or four years, you paid way more money for it back then. And then the other problem with it is that builders now with the prices of materials coming down, they’re selling the same house for cheaper or lower than what you paid a couple of years ago. Plus two, they have spiff money of three or

4 % which they can offer for you to buy this house. And then you know the American dream especially I can’t do this in the big ticket areas of Charleston which which is on the coast in downtown Charleston which is predominantly the price this is more about 25 miles out in the Summerville, Goose Creek, Monks Corners area. The average price of a house there’s four to five hundred thousand dollars and so there’s a lot of houses more than I could buy or ten people with my experience and knowledge you know how can buy where these houses are upside down.

You know, the same thing, divorce happens, job offers. There’s a lot of military people here. There’s a lot of young kids. They go and get a VA loan with no money down and go to sell their house and then 10 % to sell, 6 % in real estate commission, 3 % in points and costs and negotiating. They’re upside down to the tune of 50, 80, $100,000 in these houses.

And so the new business I’m doing now, which I really like and prefer, is that. And the reason for that is I can buy these houses for five to $10,000 or less and literally come in and take over the mortgage on a year or two year old or three year old house with no work, no rehabbing, nothing other than a sweep or some paint touch up. And then the great thing about that business is 90 % of all the mortgages nationwide are still below 5 % due to purchase and refinance.

I can take over and here too, there’s so many military I can take over a VA loan with no PMI So that’s the savings of a couple hundred dollars a month So I can get a brand new house with a low interest rate and then turn it around and sell it to the same Contractors that are driving by to go build the new houses So I’ve turned my business into a model where I make money four ways and I have a pool of buyers Which nobody can cater to how I make my money is I get 10 % down on these properties

Adam Denney (27:35.649)
which are almost brand new, so I have an unlimited amount of buyers who want to buy something like that. I make money on the down payment. My down payment requirements are typically 10%. I pay $5,000 $10,000 on a $400,000, $500,000 house to take it over. And then there’s a nice spread. I usually make a margin or a markup of about 5 % on the loan that I take over versus what I put it back out on the street. And then I do…

Then I mark up my houses when I ultimately sell these. I mark them up 10 % usually above what the buyer paid back at the higher price. And I get 10 % down. So I’m not taking advantage of the value of what they put the 10 % down. We’re pretty close to what somebody had paid in a year or two. Or when the market comes back, they should be equity wise in a pretty good position. So when I mark it up, I just did a deal. The woman paid $4.50 for the house, put $50 grand down.

at 400 did not like it here, went to rent it. The increase in taxes and insurance made her upside down monthly on the rental payment, let alone maintenance. And if they paid the whole time, came back, thought she was going to leave her, did not like it. And she was a referral. And so she ended up owing 388 and she wanted 12 grand and I wasn’t going to lose a deal over $2,000. It was about two grand more than I like to pay, but it was a two year old house, 2,700 square feet, four bedrooms, three baths, 20 grand in upgrades that she’d put in.

into it and so I ended up giving her $12,000 and she had a 375 % loan.

And I turned them around and sold it in less than 10 days. And I sold it for $480, $48,000 down plus the closing costs. So I made money on the down payment, about $800 a month spread on the upcharge and what I charged in the interest rate. And then I moved money on the back end. And the fourth way I make money is I do all my deals interest only. And the reason for that is the payment’s more affordable for buyers and opens it up. And my typical rate is between 8 and 9%.

Adam Denney (29:36.861)
charge any less than 8. I don’t typically charge more than 9. It’s more of a feel for what I think you can afford. And then when I do my deals interest only there’s a special loophole in the tax law. The profits I make off of that transaction make it so my rate on taxes is my adjusted or regular tax rate not the capital gains rate. And then also

Michael Stansbury (29:56.97)
Interesting,

Adam Denney (29:58.377)
And then also too, the fourth way I make money, being interest only, you still owe me that balance no matter what of whatever the mortgage is for. Well, the loan I take over is amortized and declining and at three or 4%, typically that’s a net profit in my pocket buying down the mortgage amount of $6,000 to $8,000 a year.

And so that’s the, and the great thing is I got out of the rental business about 15 years. That was the worst part of my life was being in the landlord in the rental business. I’m just a bank. I, know, you’re not suing me. You’re not calling me. I, you know, literally my hassles and, and frustrations and all my, my checklists of what I did not like about the real estate business have disappeared.

Michael Stansbury (30:41.901)
Yes, when you’re the bank. Yes, beautiful. What a road of, here’s where I started, here’s where I was in the middle, and here’s where I’m at the end. And it’s where I think most real estate investors want to get to the point where they are the bank. They are lending money and they are not having to deal with toilets and tenants and all those fun things. I love the story.

Adam, where can people reach out to you at? Are you on the social media? How do people reach out to you if they wanted to get in touch with you in your market?

Adam Denney (31:13.923)
We.

Well, saying that Mike, here in Charleston, and actually I have people that visit me. I’ve done these podcasts for Lou Brown’s group, his real estate groups. I speak to his classes as an advanced student, obviously, my net worth and portfolio is larger than most people’s. And then my niche of door knocking. you know, what I told you, you know, if you went out and what I try to tell people is this is the creative and subject to is very complicated.

complicated and hard to figure out. if and so typically what I do here in Charleston, you know the deal everyone, you know, what’s the easiest way to make money? The real estate business. So I send a lot of people to Lou Brown’s class to take the millionaire jumpstart of the foundation class. And if they take that and come back here and want to work with me, I’ll teach them how to door knock and the scripts and the flyers that we use and what to say and what not to say and just set an appointment and then call me. And then, you know, at that point,

you want to keep the deal, then you pay me consulting fee. If you don’t want it, it’s actually an excellent lead way for me to generate leads or deals because if you don’t have the confidence or the money to do the deal, I will pay you for the deal as opposed to nothing and take over the deal myself if it’s a viable transaction. So yes, you can reach me. We’re on Facebook. My company is DentCorp Investors, our main company, and that’s on Facebook.

Michael Stansbury (32:33.665)
Awesome. That’s great.

Adam Denney (32:44.417)
As well, do you go out telephone numbers or? Sure.

Michael Stansbury (32:47.532)
Yeah, we’ll put that in the show notes as well. Yeah, dencorpinvestors at gmail.com and then 843-926-3711 is how you can reach Adam. Adam, thank you for being a part of the Real Estate Pros podcast. Folks, thanks for watching. If you want to get in touch with Adam, we just gave you the information. It’ll be down in the show notes. Have a great week and we’ll see you next time.

Adam Denney (32:56.633)
That is correct.