Welcome back to the Strive for 25 Podcast! We are thrilled to launch Season 2 of "100 Stories of Increasing Income" with an incredible first episode featuring Leonard Anderson, a seasoned real estate investor and fix-and-flip expert from the St. Louis metro area. Leonard has successfully flipped over 50 homes throughout his career, and in this episode, he shares the insider strategies that have fueled his success in the fix-and-flip market. We had the privilege of filming this episode at the Purpose Driven Academy in Bel Noir, Missouri, owned by the amazing Keisha and Ryan Haynes. This community-driven space provided the perfect backdrop for diving into Leonard’s wealth of knowledge, as we explore how he acquires, renovates, and sells properties for profit.
Strive for 25 Podcast - Season 2, Episode 1
Title: Kicking Off Season 2 with Leonard Anderson: The Fix & Flip Master of St. Louis
Episode Summary:
Welcome back to the Strive for 25 Podcast! We are thrilled to launch Season 2 of "100 Stories of Increasing Income" with an incredible first episode featuring Leonard Anderson, a seasoned real estate investor and fix-and-flip expert from the St. Louis metro area. Leonard has successfully flipped over 50 homes throughout his career, and in this episode, he shares the insider strategies that have fueled his success in the fix-and-flip market.
We had the privilege of filming this episode at the Purpose Driven Academy in Bel Noir, Missouri, owned by the amazing Keisha and Ryan Haynes. This community-driven space provided the perfect backdrop for diving into Leonard’s wealth of knowledge, as we explore how he acquires, renovates, and sells properties for profit.
Whether you’re a beginner or an experienced investor, Leonard’s journey offers invaluable lessons that will motivate and equip you to achieve financial growth.
Key Takeaways:
Community Bonus:
As a special bonus, each guest in Season 2 will be providing exclusive guides in our Skool community. Leonard has prepared a comprehensive guide on how to start and succeed in the fix-and-flip business. Don’t miss out on this invaluable resource—join our Skool community to access Leonard’s guide and more content from our amazing lineup of guests.
Join the Conversation:
To dive deeper and get even more actionable tips from Leonard and other experts, make sure to join us in our Skool community. Each episode will bring you not only inspiring stories but also practical resources to help you increase your income and build wealth.
Thank you to Keisha and Ryan Haynes for hosting this incredible episode at the Purpose Driven Academy! Stay tuned for more exciting stories and strategies in our "100 Stories of Increasing Income" series.
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welcome to the straford 25 podcast I've
0:10
got an amazing guest today Leonard
0:12
Anderson we're going to be talking about
0:14
fix and flips in real estate as a way to
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be able to generate income as a part of
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the 100 stories of increasing income
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many series and we are at The Purpose
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Driven Academy in Bor in St Louis
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Missouri owned by Miss Kesha and Ryan
0:28
Haynes all right so we're going to jump
0:29
right in here picks and flips yes if
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we're talking to somebody that wants to
0:33
get into this from the groundup as a way
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to be able to generate income in the
0:36
future type of expectations or what type
0:39
of guidance would you start with from
0:41
from the ground up from the ground up
0:43
first thing I would do would be educated
0:46
I would understand in order to Fix and
0:48
Flip um whether it be Finance learning
0:52
how to find the crew learning how to pay
0:55
your crew learning how to protect
0:56
yourself from people taking advantage of
0:58
you learning about how time is money um
1:02
so the very first thing that I would do
1:04
is educate myself I would learn uh the
1:07
vocabulary of what it is that I'm
1:09
looking to get into and then from there
1:12
um I would be working with the lender
1:14
and I would make sure that I have my
1:16
financing because nothing is more
1:18
disturbing than when you actually find a
1:21
project that makes sense but you can't
1:23
get financing because you didn't work
1:24
that part out at first yeah the
1:26
financing right I mean how do you how
1:28
are you gonna be able to afford the
1:29
property and the renovations correct so
1:32
getting educated getting well versed in
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the language that's a process so I have
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two questions for you where do you go to
1:39
get the education and then two how do
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you know if you're ready take the
1:44
leap well uh the first one is easy uh
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you can start with books you can start
1:49
with YouTube videos uh you can start
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listening to podcasts um the way I did
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it was a little bit old school I found
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myself a crew that I got from a realtor
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that I was going to use to help me find
2:00
properties and I asked that crew uh the
2:04
manager of that crew if they would walk
2:05
the properties with me and my parents
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and then we would pay them for their
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time so we would pay them like $100
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every time that they would come out and
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walk through a property with us we
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actually did that for six months we
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learned what it is that we needed to
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know about properties what it is that
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needed to be done right away what things
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that didn't need to be done we
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understood the language we understood
2:25
how long it was going to take so once we
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were at about that six Monon mark then
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um we just went ahead and jumped in
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because you won't know until you
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actually do it so the first one in terms
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of
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expectations should you expect to make a
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profit on the first one oh yeah
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okay yeah if you have good numbers yeah
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what if you don't make a profit on the
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first one when all is said and done if
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it's all said and done uh regardless if
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you make a profit or not you always go
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back and rewalk through your entire
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project because you can always get
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better whether you make money you can
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make more money or whether you lose
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money you can make more money so even
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like right now after having done over 50
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properties I still after every project
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walk through my project with my crew and
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we ask what can we do better a simple
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example would be we watch some paint and
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um for them to paint the trim around the
3:24
baseboards and doors and stuff like that
3:27
notice that when they were changing the
3:28
color from dark to light that it was
3:30
taking them three sometimes four times
3:32
to get a nice you know clean look so we
3:35
went back it's like hey what we need to
3:36
do is we need to buy premium paint quit
3:39
buying the mid-grade paint we need to
3:41
buy premium paint you guys only need to
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be doing this once or
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twice so you can always walk through get
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better become more efficient the more
3:49
efficient you get um the better your
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profits will be okay so financing
3:54
knowing the lngo spend time with experts
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Spend Time Properties you mention six
4:00
months of just work and walking through
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properties and looking at the numbers
4:04
and running numbers I want to just take
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uh a tangible example the most recent
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one that you've done walk us through
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kind of the process high
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level okay um realtor brought me a
4:20
property um what we call off-market
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properties those are properties that
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have not hit the market yet ones that
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you don't find in the National Zillow or
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the national what they call called
4:29
multi-listing service is what the
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realtor use is something that uh
4:34
sometimes they call it a pocket listing
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a realtor has something that a person
4:38
says hey if you find somebody who might
4:40
be able to get this for me quick and
4:41
they give me a decent uh offer that I'll
4:43
go ahead and sell it without waiting on
4:45
it to go on the market so realtor
4:47
brought me one of those I use a software
4:51
uh so that I can be more consistent and
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it's called estimator rehabber Pro and
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basically I walk through and I determine
4:58
what needs to be done each room what
5:00
needs to be done with electric plumbing
5:02
Roofing uh Windows flooring paint if I
5:06
need to replace anything in the kitchen
5:08
and the bathrooms anything like that I
5:10
put it all in the software software
5:12
tells me approximately how much it's
5:14
going to cost me to rehab that property
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realtor is going to tell me what that
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property is going to be worth based off
5:20
of the work that I'm going to do to the
5:22
property and then I take that um and I
5:25
go to the bank and I say hey I would
5:27
like to get a loan for this um this is
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what the property's going to be worth
5:31
this is what I'm buying the property for
5:33
this is what it's going to um this is
5:36
what it's going to take for me to rehab
5:38
the house this is what the cost is going
5:39
to be this is how long it's going to
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take me to do it so that they know how
5:43
long they need to loan me the money and
5:46
uh and then I give them what my profit
5:48
margin is and as long as I meet all
5:49
those strike points um then typically I
5:53
get the loan what's your typical profit
5:55
margin Target going into a deal 35,000
5:59
5,000 so so not necessarily a percentage
6:02
but a minimum dollar amount minimum
6:04
dollar amount okay so are you okay
6:06
sharing maybe some generalized numbers
6:08
on that deal sure you sure sure okay so
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you go to the bank you say hey I want to
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buy this property at what price so I
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bought a property for
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$50,000 I asked for $70,000 to put into
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it so that's
6:24
$122,000 I thought that
6:27
um when you add in my 5,000 so now I'm
6:30
at
6:31
$155,000 total I thought the property
6:34
would have praised off for 175 but
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actually a property Praises out for
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200 so I think I spent um 15 times four
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so $6,000 in interest carry so I paid
6:48
$6,000 in interest um about another
6:52
$4,000 in closing cost so that's $10,000
6:55
so it took me up to 165 so basically
6:58
because the house for more um you take
7:02
that amount plus my 35,000 that I
7:04
already had built into and then there's
7:05
my profit
7:08
okay the the process of buy rehab sell
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what's the hardest part so the formula
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would be you take the after repair value
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which is typically called the arv let's
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just say it's
7:22
$100,000 uh the bank is going to loan
7:24
you 70% of that up to 70% of that so the
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max that they're going to loan you is
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$70,000
7:30
,000 so then out of that $70,000 you got
7:33
to have your Buy price so let's just say
7:35
you bought it for
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$25,000 and so let's say $30,000 let's
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keep the numbers round so now you take
7:42
that $30,000 off the 70 that leaves you
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40 let's say it takes you $220,000 to
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fix it up off the 40 that leaves you 20
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so that's po you know potentially what
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your profit is going to be it's actually
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going to be a little bit less than that
7:57
because you're going to have interest
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carry
8:00
Insurance um possibly some overrun
8:02
something like that but that's the
8:04
simple math of it okay so what are most
8:06
people have the biggest trouble or or
8:11
hurdles um the biggest hurdles is a lot
8:15
of times when you have somebody who's
8:18
new they don't get a
8:20
mentor so I would say having a mentor is
8:23
probably the biggest thing that you
8:25
would need to have when you're starting
8:27
something new it doesn't always have to
8:29
be
8:30
because you don't know you just may not
8:33
know for the area um I have a person who
8:37
invest in Kansas City but came to invest
8:39
here he didn't know that our our codes
8:42
are different than they were in Kansas
8:43
City and he decided not to have a mentor
8:46
not to have somebody locally who
8:47
understood and he ended up having to
8:49
redo his whole project after it was done
8:51
cost him an extra
8:53
$100,000 so having a mentor somebody in
8:56
your your corner that can help you
8:58
navigate through things uh help you
9:00
reduce your losses or your missteps is
9:03
probably the best way where did you say
9:05
is the the best place to start to find a
9:07
mentor in your
9:09
area um for me it would be joining a
9:12
real estate group and finding people who
9:16
are really invested in you for you um
9:20
typically somebody who is ultra
9:22
successful they don't have a problem
9:25
sharing um so you won't really have a
9:27
problem with them feeling that they're
9:29
going to stab you in the back or
9:31
something like that because there's no
9:32
gain in it for them so I would find
9:34
somebody who's successful I wouldn't
9:36
find somebody who's just starting I'd
9:38
find somebody who is
9:40
successful yeah I agree I mean the
9:42
people who have done it and they they
9:44
want to pass it on right and I think in
9:47
my journey especially on this podcast
9:50
when I was out putting out content and W
9:52
and just trying to figure things out you
9:54
notice people who are maybe at the same
9:55
level as you but putting in the work
9:57
every single day on the flip side a lot
9:59
of people that don't want to put the
10:01
work in so when someone sees put someone
10:02
willing to put the work in and doing it
10:03
over a period of time right I know I
10:05
personally feel you know you the desire
10:08
to want to pass on whatever knowledge I
10:09
can sure to someone that's going to put
10:11
the work in oh yeah I mean if you think
10:13
about
10:14
it most people think in the terms of
10:18
being finite like here's my level I want
10:20
to make 100,000 I want to make 200,000
10:22
or I want to live this kind of Lifestyle
10:25
but if you change your mindset to be
10:27
infinite there is no limit
10:30
then your ceiling is there is no ceiling
10:33
and so when you start dealing with
10:35
people who don't have a ceiling and
10:37
that's how they think then they then
10:39
those people understand that hey um I
10:41
can give you information because there's
10:43
enough for both of us to be successful
10:45
in this world and those are the people
10:47
that you want to deal with yeah so the
10:50
infinite mindset I I know what that
10:52
means and this is how I would describe
10:54
it to somebody that's trying to learn it
10:57
absorb it do it is that in my journey in
11:00
real estate I didn't have a mentor I was
11:02
just kind of going along reading books
11:04
and there wasn't as much social media
11:06
about it right uh to go find people that
11:08
that may be a mentor and so if I could
11:11
do one thing over I would have spent
11:14
more time finding a mentor and the idea
11:15
of okay I am gonna go find a mentor and
11:18
I'm not GNA stop till I find it and that
11:21
type of mindset of not stopping till I
11:23
get there I don't care how long it takes
11:24
I'm gonna go find it sure that's how I
11:26
would describe an example of an infinite
11:27
mindset this is my goal this is my
11:28
vision that's what it is I'm not
11:30
stopping and you if your why is strong
11:33
enough the how figures itself out sure
11:37
so and that stops most people most
11:40
people have anywhere from a five to 10
11:42
step program of how they plan to get to
11:44
where they are but because they can't
11:47
figure out step three they won't start
11:49
step one so um for me uh I have a vision
11:53
board that talks about all the different
11:54
things I'd like to do with my life and I
11:57
have a old school cartoon character um
12:01
from a Christmas cartoon and his song is
12:03
put one step in front of the other soon
12:05
you'll be walking out the door so for me
12:08
it's just taking the next step and then
12:10
the next step will present itself the
12:12
pathway will present itself to The Next
12:14
Step so for me it's always just taking
12:17
the first step so with this miniseries
12:20
100 stories of increasing income we're
12:21
going to have a guide that we're going
12:23
to house in our school Community is
12:24
going to be for free um and speaking of
12:27
Mentor if somebody wanted to reach out
12:28
to you some questions what would be the
12:31
best way to get a hold of you uh
12:33
Anderson James Capital at yahoo.com
12:36
Anderson James Capital at Yahoo okay so
12:40
I know you've got some we're talking and
12:43
sharing about some of your goals going
12:45
forward um would you want to share a
12:47
little B about just one thing that
12:48
you're working on uh to skill for next
12:51
year um so for me I have grandchildren
12:55
that are probably younger than most of
12:57
the people in the audience here but it
12:59
is to um it's to expose them to what I
13:03
do you know at that level so basically
13:06
right now I go on Amazon I send them
13:09
books I'm like hey for $25 read this
13:12
book send me back a uh a book report
13:15
let's talk about it you know um so that
13:19
you know we can have the dialogue so
13:20
that they can understand it only way
13:22
you're going to understand it's by
13:23
practicing it and then the older that
13:25
they get the more intense the books will
13:27
get and then we'll just start doing
13:29
things like taking trips to different
13:31
conferences that I go to so that they
13:33
can see wow um you know there are people
13:38
doing this and you have to be able to
13:40
see that there are people doing this and
13:43
um uh that's that's really important you
13:45
don't have to necessarily leave out of
13:47
your Township find things in your
13:48
Township attend things where you see
13:50
people doing what you want to do and
13:53
that lets you know that uh it can be
13:55
done and that's real powerful it it is I
13:59
love that because that's kind of why I
14:01
was talking about the first one