Ep 507: Selling A Portfolio Deal With Jared Vidales

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In this podcast episode, Daniel Martinez hosts Jared Vidales, who discusses complex real estate transactions, particularly focusing on a stressful deal involving the purchase of 29 houses in Scottsdale. Jared details the strategic approach he used to attract sellers by targeting those who bought homes during the economic downturn and are not active investors. He shares insights into the intricacies of dealing with hedge funds, the complications of escrow, and the legal complexities surrounding large real estate deals. The episode highlights the challenges and strategies in real estate investment, especially in high-stakes, high-pressure scenarios. Introduction of the Episode and Guest (0:00-0:26): Daniel Martinez introduces the podcast episode and welcomes returning guest Jared Vidales, setting the stage for a discussion on Phoenix real estate and a specific portfolio deal Jared has to share. Jared's Real Estate Strategy (0:57-1:36): Jared explains his unique approach to acquiring property by targeting opportunistic buyers from the 2010-2012 period who are no longer active, using personalized letters and portfolio spreadsheets to propose bulk purchases. Details of the Complex Deal (2:02-3:10): Jared dives into the specifics of one of his most complex and stressful deals involving the purchase of 29 homes in Scottsdale, valued at $16 million, and the subsequent negotiation complexities and price adjustments with hedge funds. Escrow and Closing Challenges (6:14-10:31): The conversation culminates with Jared recounting the intense final stages of the deal, including escrow challenges, contract nuances, and a tight deadline that nearly jeopardized the entire transaction, highlighting the high tension and stakes involved in such large-scale real estate deals. Text 📱 210-972-1842 Text 📔 "Course" to learn how to make 6 figures on one land deal. Text ✴️ "Hive" to get added to weekly meetings. Text 🍎 "Apple" to schedule a 1-on-1 call with Anthony & Daniel. Text 🛬 "Land" to join The Million Dollar Land Mastermind 📃 Partner with us on your deals: https://submitbigland.com/ 🔍 Need Inbound Real Estate Leads. https://www.hiveleads.io/ 🔍 Follow Us on YouTube https://www.youtube.com/channel/UCbulcrC4WbOy5Fzu0eWzNVQ/?sub_confirmation=1 🔍 Follow Us on Instagram https://www.instagram.com/hivemindcrm/ 🔍 Check Out https://www.hivemindcrm.io/ 🔍 Check Out Our Land Mastermind https://www.milliondollarlandmastermind.com/landmastermind 🔍 Pick Up All Event Recordings here. https://thehiveislive.com/recording 🔍 Follow Us on TikTok https://www.tiktok.com/@hivemindcrm?lang=en 📍Join the FB Group https://www.facebook.com/groups/137799891494707 📍 Check us at Join Us! https://thehiveislive.com/ Help support the show. https://anchor.fm/hivmindcrm/support

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Transcript

hello welcome to the H of this podcast

I'm your host Danel Martinez today we

have returning guest Jared vidales out

[Music]

Phoenix if you not seen the episode

other episode please go check it out we

covered Phoenix development buying in

the path of progress land that's worth

$2 and half million dollar an acre if

you have not seen it go check it out but

today we cover deal breakdown we cover

cool interesting stories and Jared said

he has a good portfolio deal for us

today if you want to cover that yeah

yeah so it's one of the most well

probably one of the more complex and

most stressful deals I did so this is

back when the hedge funds were buying a

ton of single family homes and that was

a good time that was yeah that was that

was a great time it we should come

back so the so like I like to do like I

like to do little Pro like little

marketing projects very creative ways to

acquire acquire property and my uh a

Jared's Real Estate Strategy.): Jared explains his unique approach to acquiring property by targeting opportunistic buyers from the 2010-2012 period who are no longer active, using personalized letters and portfolio spreadsheets to propose bulk purchases.

couple years ago the one that I really

enjoyed was

I would find owners who bought a ton of

homes in 2010 11 and 12 and then just

stopped because in my mind those and I'd

send I'd send letters to them because in

my mind they are opportunistic buyers

they saw an opportunity they bought and

then they stopped they're not active

Real Estate Investors anymore so in my

mind I'm like Okay opportunistic

purchase why not an opportun un istic

sell in one shot right so I'd find these

you know owners who own at least 10 plus

homes I'd send them a letter and on the

back of that letter had an Excel Excel

spreadsheet of their entire portfolio

saying I want to buy all this did two or

three Deals out of out of those like

some small three four five unit packages

and then a couple months later I get a

call and uh it was a sophisticated guy

he's like look I I got this letter I own

29 houses in Scottdale if people don't

Details of the Complex Deal.): Jared dives into the specifics of one of his most complex and stressful deals involving the purchase of 29 homes in Scottsdale, valued at $16 million, and the subsequent negotiation complexities and price adjustments with hedge funds.

know Scottdale it's a very bouge area

right everybody wants to be there like

cool he's like but I want I want 16

million for this and I'm looking at the

deal I'm like okay 16 million it's kind

of overpriced I think it came out to

like 550 a unit like 525 or 550 a unit

um so like yeah so we hung up the phone

I didn't really think about it but

there's this one fund it was a younger

fund the operator was one of the third I

think he was number three higher with

Invitation Homes and people who don't

know Invitation Homes they were the uh

the first to Market to start buying

single family homes they're the biggest

so he was their number three new fund

started in 2021 younger guy and I'm like

okay I I know this guy likes this kind

of higher-end product let me let me go

let me go price check him see if it's

anything so I Mark everything up like 30

grand I Mark every house up 30 grand

send it to him he's like I'll take it

I'm like really okay I'm like are you

are you solid he's like yes we're solid

this is in like June June of

2021 and so I'm like okay great so I go

back to the seller I'm like okay well

let's do it let's do the deal so we

structure a pretty in dep I mean this

isn't just a a purchase and sale

contract this is like attorney drafted

cost costs probably him 10 grand on his

side 10 grand on my side to finally get

the contract right we sign it but the

the contingency of the sale was he had

to 1031 this you know this $16

million

plus an industrial asset in San Diego

which is like 40 40 million bucks he had

to 1031 those two properties into a new

apartment building somewhere in

California and I'm like okay like what's

like do you think this is realistic he's

like yeah I've done this all the time

I'm like yeah this is 2021 stuff's

trading at like three caps right now

like you think you're you're really

going to find something's like no

problem cool so we we entered the deal I

put down 250 Grand in non-refundable

earnest money quarter million bucks yep

and so lock up the deal I walk every

single house I I literally have 29 29

different tenants I got 29 different

Starbucks cards and I I had to call

every single one schedule them and I had

to get the project manager from the fund

to you know get on the same schedule

where and for the next five or six days

we walked every single property and he's

like great we're good to go and so I

tell a seller I'm like look we're good

to go he's like I haven't found a

building yet and so I guess to keep it

short he was in and out of escrow on

three different buildings oh man get an

escrow something would pop up it would

fall out like next one popped up

you know he went into escrow something

whatever cancelled I'm like dude we're

like four or five months into this thing

finally goes into escrow on a big

building in California and he's like

this is the one I'm like yes and I I'm

tell I'm the entire time I'm commun

communicating with the fund manager I'm

like this is the one he's like great

because if this doesn't close in this

year then we can't do the deal because

he he he had a capital allocation he had

to spend

yeah and he set he set it aside and his

plan was like he he would take that

Year's

purchases and then go securitize them

and go sell Bonds on Wall Street so they

could recapitalize and go buy more

houses for the following year yep and he

he would have to securitize his

portfolio so he could you know get his

liquidity back so I'm like okay so you

know he's you know sellers going through

due

diligence mind you I'm the million hard

on this thing and if my buyer backs out

I lose a quarter million bucks

yep so you know we're three months into

the D diligence I'm in Italy at this

point looking for W uh wedding venues he

calls me say hey

Escrow and Closing Challenges.): The conversation culminates with Jared recounting the intense final stages of the deal, including escrow challenges, contract nuances, and a tight deadline that nearly jeopardized the entire transaction, highlighting the high tension and stakes involved in such large-scale real estate deals.

Jared I got earthquake insurance an

earthquake insurance quote back on this

multif family building it's a hundred

grand over what I thought it was going

to be and then he's like I'm I'm gonna

try and figure something out next day he

calls me he like hey I think we can make

some structural CH changes which would

minimize this Earth Quake insurance I'm

like dude yes let's do it and then you

know time goes on time goes on I'm I'm

back at my in-law's house for Christmas

and I'm like dude it's either or

get off the bot man or I I gotta pull

out of this deal yeah and like just come

like come on like let's let's go let's

make it happen and he was like him and

and Han and finally M dude let's

go and he's like okay let's do it so

this was like the December like

21st and so I I get on the phone with my

askcar officer I'm like look we're ready

to go like how fast can he get this

thing done he's like let me look at it

let me call you let me call you back

calls me back the next day this guy my

esro officer flips his car on the

freeway he's in the hospital no and he

and it's too I can't transfer this file

to anybody else because it's so Cal 29

29 houses yep and I'm like I get on the

phone with them I'm like you're you're

closing this thing I don't care what you

have to do bring your laptop you have to

close this deal and he did I mean and he

said okay I'm gonna I'm gonna close this

deal so this is December

202nd or

23d uh bu the settlement statements go

out and I have I have 800 Grand on this

deal marked up yeah and the hedge fund

the the fund manager calls me and said

hey Jared the

all the properties are on one deed I

need them on separate deeds and so I

call my escort officer and he says I'm

like dude we need these on all

individual Deeds he's like well then you

need to execute 29 different p uh

purchase agreements Y and we have to

draw up 29 different deeds and 29

different escros there's no way in

freaking hell we'll be able to do this

before the end of the year so I call I

call the fund manager I'm like dude it's

is not going to H I can't I can't do

this and he's like it needs to be done

and I'm like okay like what is it going

to take he's like let me get on the

phone with my attorney gets on the phone

with his attorney he's like okay we

could do it on one deed and then we'll

break it up after the close of escrow

it's GNA cost me 10 grand I'm like I'll

pay it I don't care yep he's like cool

closed the day before Christmas Eve boom

closed after all that time like I

thought this deal was gonna fall apart

five different ways and it's somehow

miraculously closed that's what the

biggest those those big deals man

there's always there there's no clean

and easy deal on these large ones but it

gave me some gray

hairs how long did it take you from

start to finish because you said you had

to finish by the end of the year and

you're closing Christmas Eve like seven

months oh my God seven months pins and

needles for seven months

dude oh man would I do that deal again

maybe but that was that was a stressful

one see one of the things I love about

this is that you now have experience and

experience is priceless even if you lost

that was that was a great Learning

lesson but you win so it's even

better I've done I mean I've done a 95

home package I've done a 66 home pack so

I I know how to do them but it was just

that 1031 contingency and being in a hot

market and you know all these different

layers which which made it super

complicated

that's crazy that is an amazing story

for Doo breakdown

today that is crazy where can people

find you online this is this is great

yeah find me on Twitter and Instagram

Jared vidales first and last name there

you go thanks for coming on thanks for

coming to the show that is an amazing

story thanks for sharing that with me

and for everybody listening today I love

that story that's that's crazy that's

crazy giving

me for everybody here go like share

subscribe you know what to do we'll see

you in the next episode thanks Jared

thanks everybody bye

[Music]

Daniel Esteban Martinez

Host/ Ceo/ Speaker

I have been an entrepreneur since 2018. I come from a regular home just like most people. My dad worked on the roads in the Chicago area for over 30 years. He always taught me to work with my brain, instead of my body. Your body can only take so much abuse. I learned so much from my father. He always pushed me to work smarter and not harder.

I have owned and operated a trucking business for 2 years. I started learning real estate in 2019. Fell into the Data & Skiptracing business in 2020. My partner Anthony & I started Hivemind in 2021.

I have done a ton of different jobs coming up from painting, to door-to-door sales, telemarketing, truck driving, and loading trailers. What I learned most is that I want to stay in the digital business space. The leverage you can have delivering digital products to the marketplace can yield limitless possibilites.

I started The List Guys in 2020. It is a data and skiptracing service. We provide seller and buyers list nationwide. My clients have been getting great results and I am proud to help people killing it.

I started the Hive in 2021 with my partner Anthony Gaona. It is a real estate and business mastermind. It also comes with a all in one CRM, that can host unlimited websites and users.

Starting the Hivemind has been an amazing journey so far. Seeing one of our users make his 6 figure month in June 2021 leveraging our software, I know there will be plenty more to come!

Jared Vidales

Jared Vidales, CEO of Equity Connect, manages $100 million of assets, including estimated costs to complete assets under development and entitlements.

Jared Vidales & Danielle Crowell’s 10-Year track record of managing and operating real estate is built on one singular philosophy: identify opportunities and strategies that generate returns significantly larger than the market as an average. And because we are not beholden to one specific strategy, we are able to generate returns in all parts of the market cycle for both the company and our investors.

We consistently beat the market through proprietary data harvesting through hundreds of data sources, analysis, and the use of algorithms to quickly crunch millions of lines of data. These systems allow our acquisition team to identify distressed asset owners live in real time, but more importantly, start having discussions before the broader market is aware of the opportunity.

Our strategy is simple: buy great assets at a great price. Further increase value through renovations and operations. Then either flip the asset for a quick profit, or hold those assets for 10+ years before realizing above average returns for us and our investors.