Creative Real Estate Deals: Subject-To, Auctions & Networking Strategies

Erika (00:00)

That property that you mentioned for $2,500, wow. What is the process for finding a deal like that? I’m sure that was part of the conversation.

Nathaniel Cochrane (00:03)

Yes.

yeah, yeah. So one of the students that are, one of the people that are in ⁓ the real estate deal lab, I said, hey, look at this particular city in America. And they brought it back and they said, wait, this lot was sold at auction for 2,500 bucks. And I was like, okay, let’s take a look. Let’s dive a little deeper. So certain auctions,

in America share of sales, actually have people don’t know about them, especially in their area. And sometimes the the key behind that is, you know, getting the boots on the ground in that area. Right. To go and, you know, go to these auctions. And not a lot of investors really do that because they don’t see certain opportunity zones that are very, very prevalent, but also very hidden. So uncovering that is the key.

I’ve gotten townhouses, even in my market, for like $10,000. And that’s just really just learning, you know, what a seller really wants, but also knowing how to find them. know, litigations and, you know, probates that are gone bad and people just want out, mold remediation. I love giving the game. So all of those little structures is where those deals can be found. Yeah.

Erika (01:19)

Yeah, yeah, absolutely. you know, those are things too, that not everyone’s willing to put up with, but if you know how to deal with it, then it’s a gold mine.

Nathaniel Cochrane (01:20)

Mm-hmm.

Right? That’s right, correct. Very

much a gold mine, trust me. $2,500 for a five bedroom, bath in the city.

Erika (01:32)

Hahaha!

everyone, welcome to the Real Estate Pro Show. I’m your host, Erika. And today I’m thrilled to be chatting with Nathaniel Cochrane. He’s been making serious moves in the investing space. Nathaniel, welcome to the show.

Nathaniel Cochrane (03:22)

Welcome. Thank you. Thank you for having me.

Erika (03:24)

I appreciate the welcome too. So let’s dive on in. Nathaniel, for our listeners who aren’t familiar with your world, your journey, give us the rundown. How did you get started in investing?

Nathaniel Cochrane (03:26)

Right. Yes.

Well, I always wanted to start in investing. I just didn’t know anything about it. I watched infomercial with Carlton Sheets way back when I was like a kid and I was like really I like that. I like real estate. He’s made it so simple and years later after leaving healthcare and doing entrepreneurship my folks have a store in Florida. I said now is a time now or never.

Right, so I started reading a few things and then I put my first house on the contract and heard about this thing wholesaling and that’s how I started. Yeah, so that’s how it began.

Erika (04:11)

Yeah, that’s really cool. With that journey, was there like a really big lesson that you learned along the way?

Nathaniel Cochrane (04:19)

There was,

right? ⁓ The lesson really happened when there was a property that I couldn’t wholesale, which means to sign the contract to an end buyer or an investor. And I had to learn everything from there. I had to build a network of attorneys. had to, because the property was upside down, that means like it was in foreclosure and the person didn’t want anything to do with the property.

And before you know it, was going after this one and working on this one, then another four came into play. And I said, wait a minute, there is something to learn here. So it’s basically keeping an open mind and going where others didn’t really want to go. I found that that was where the huge value was. So I learned how to landlord. I learned how to do subject to deals all from those first few properties that nobody wanted to touch.

And I built a good network with it.

Erika (05:58)

Yeah,

yeah, that must have been a lot of upfront work and learning on the job.

Nathaniel Cochrane (06:03)

yeah.

yeah. It was scary too. You know, you want to know what you’re doing, but you’re like, am I doing this right? Am I going to get in trouble? And then, you know, the attorneys that I met were very, very helpful. And it’s always good to have a network. I preach that everywhere I go. So that’s when, you know, I learned so much about short sailing, subject to everything from there, but it was, it was a struggle because there was a new information.

every single day.

Erika (06:31)

Yeah, and while that was all going on, was there a specific moment or, you know, maybe one of those early deals that got you hooked, even though it was hard?

Nathaniel Cochrane (06:40)

Yes, yes. So ⁓ one of my first deals got me hooked because number one, it was a property right around where my parents actually lost a house years ago in the recession. So I’m very tied into that experience because that actually happened. They bought two properties and God forbid they had to let one go because it was just a mess back then. And on the same block, the same street,

I went and found one of the best houses on the block and I just kept driving. I call it driving for millions because I was driving the block and found that one. And that was a huge blessing, number one, a learning experience. So yeah, it really started everything for me. That was the one I learned the most lessons on.

Erika (07:22)

Yeah, yeah, that’s really cool. And when it comes to what you’re doing today, what markets are you in and what kind of properties are you getting?

Nathaniel Cochrane (07:31)

So now I do more fix and flip and new construction. My markets are Florida, South Carolina, Houston, Texas, and Alabama. We bought some stuff in Alabama.

Erika (07:42)

And man, that’s quite a range. What’s the secret to managing all those different properties, understanding those different markets?

Nathaniel Cochrane (07:51)

Well, you have to have good boots on the ground. I always mention to folks just go out there and take a look. If you start first, make sure that you start in your area or an area that you visit frequently. And so the skill is really having good people around you. And again, a network. You have to have a network. Yes. ⁓

Erika (08:09)

Yeah.

Yeah,

absolutely. Yeah, so let’s like talk about the whole networking thing more, because as you know, it’s it’s really important. Was there a moment on your journey that it took you to the next level?

Nathaniel Cochrane (08:27)

Yes. One of the first subject two deals that was dealing with an ugly foreclosure lady didn’t want it and she had heirs. I had to not only speak to a bankruptcy attorney and a real estate attorney and a good title company. And that was when I said, OK, well, the network is really where the value is because they taught me so much and they made the stress bearable.

And that is the key because in this ⁓ industry, if you don’t have a good team, you’ll be stressed. you know, those were the moments that I said, OK, that elevated me to the next level. So I had a tele company. They sent me a deal as well because they heard that I had done, you know, properties that had not only bad titles, but heavy foreclosure and litigation. So I was I was starting to get blessed because of that.

You know, just going through that process. And that really elevated me to the next level. You know, not only the city calls me about certain stuff, if they see a property that they feel like somebody needs a lot of help. So, yeah, that really brought me to the next level. Yeah, for sure.

Erika (10:08)

Yeah, that’s awesome. Nathaniel, are there any networking groups that you were in before or today that were really helpful with the connections to?

Nathaniel Cochrane (10:17)

I started looking at bigger pockets. That was the first one. I remember when they used to have a little forum online on their website and I found some good investors there. And then when I had a problem with a property, that very first property, I went to and I went and visited five title companies. And that’s when I always mentioned to people, you really just got to get out there and

you know, as you’re door knocking or doing anything with sellers, you should probably be doing the same thing with local attorneys. CFRI was really good, which is a real estate investor association here as well, because then it widens your reach, widens your knowledge base as well. So bigger pockets, forums, go to any meetups, and then just go and talk to telecom companies that are investor friendly.

Erika (11:04)

that’s a that’s really solid advice. When it comes to having boots on the ground, you got you really got to make sure that those are the right people. What’s your process for determining if someone’s a good fit to work with?

Nathaniel Cochrane (11:16)

You gotta see their work. when I’m vetting contractors or subcontractors and even attorneys, you have to go and see their work. Have a meeting with them, sit down and talk to them. See if their values align with you. And if it doesn’t, just walk away. Because when you’re in a transaction, you’re kind of like married to it until it closes or there’s a good exit strategy.

you know, you don’t want to be married to the wrong person, then they’re crooks, you know. You don’t want any of that. You want to be able to make sure that you have people that, you know, they are going to give you a lot of value as you’re giving them value and make sure that your personalities can match. So, yeah, I mean, I’ve had partners that were extremely well and good and then partners you have to make sure that you watch. And I realized I don’t want to deal with that.

make sure I watch everything that no I don’t want to do that you want to have a stress-free partnership

Erika (12:09)

Yeah, yeah.

Exactly.

And what you should be watching instead of the people that you’re working with, because you can trust them, is the market. Nathaniel, can you tell me what kind of trends you’re noticing in real estate right now with what you’re working on?

Nathaniel Cochrane (12:25)

So I’m seeing a lot of properties locally sitting and a lot of price drops. So this is where we have to make sure as investors that we’re buying the property at a right price. Be very creative right now. This is the time to do it. Everyone knows that in most markets there’s a seller’s market. I mean a buyer’s market. And so you can dictate with the right team a lot of terms. I’ve negotiated terms where practically nothing out of pocket.

⁓ I’ve negotiated terms where the seller held a note and in certain cases, even regular retail sellers, they have walked away with some cash or what have you, but it’s not the same market that it was during pre-COVID in most cases. So yeah, there’s a lot more creativity that you can do now.

Erika (13:11)

Yeah, absolutely. With rising interest rates or the buyer demand, do you do anything different with that or is that where those creative deals come in?

Nathaniel Cochrane (14:03)

⁓ The creative deals come in and you know have to let the sellers know that they’re actually competing and especially in my markets in Florida for sure. They’re competing with new construction. New construction hit the market and it was incredible the rates that they’re able to give homeowners. They’re able to buy down the rates all the way to 4 percent and you really can’t compete with that when you have a regular home that you’re flipping or putting on the market. And if you’re buying them you got to buy them at a discount now.

⁓ you know, so that’s the key right now.

Erika (14:32)

Yeah, absolutely. Nathaniel, what’s next on the horizon for you with what you see going on in real estate and investing? What do you want to do next?

Nathaniel Cochrane (14:42)

Well, I want to

grow the real estate D-Lab, which is a community. I really want to grow that. I’m excited about it because I’m giving a lot of gain, but I’m also networking with folks all over the country that have amazing, amazing cashflow centers, right, that they don’t know how to leverage or need some understanding and experience. So I’m excited about the connectingness right now.

and collaboration. Before I was doing it practically on my own, but now it’s like the time is for collaboration. So I’m excited about that. I’m also excited about restructuring commercial buildings right now. I’m super, super excited because number one, I have done a little bit, but now it’s time to really dabble. lot of businesses are filing for bankruptcy. A lot of large businesses.

So I think that there’s huge opportunities to restructure things. I’m very interested in the co-living space, which is fantastic. I talk about that quite a bit. So not regular rentals, but a lot of different value adds. I’m excited about all of those things.

Erika (15:45)

Yeah, that’s really cool. And when it comes to the website in the community you’ve built, tell us more about it. Like, what would you say sets you apart from the rest?

Nathaniel Cochrane (15:54)

We’re giving real facts in game, right? We’re not, hey, you need to buy this and not, no, I want to give as much as possible. Like last night, I do a free weekly webinar, Wednesday webinar, so anyone can come on at 6.30 to 7.30 Eastern Standard Time. And usually I have so many people that ask more and more questions. So last night we went all the way till 8.30, almost nine. And they’re just asking me questions, it’s just exciting.

We’ve found different countries that are selling houses for $10,000. We see different cities in America that are whole multifamilies for $2,500. So there’s a lot of new and interesting things that we discuss there. And I show them exactly how to not only think like an investor, but also…

analyze deals. I’m excited. Everyone loves that because you know they get to see me do work on there. So I love that. I love that so much. ⁓

Erika (16:50)

That’s really cool.

That property that you mentioned for $2,500, wow. What is the process for finding a deal like that? I’m sure that was part of the conversation.

Nathaniel Cochrane (16:57)

Yes.

yeah, yeah. So one of the students that are, one of the people that are in ⁓ the real estate deal lab, I said, hey, look at this particular city in America. And they brought it back and they said, wait, this lot was sold at auction for 2,500 bucks. And I was like, okay, let’s take a look. Let’s dive a little deeper. So certain auctions,

in America share of sales, actually have people don’t know about them, especially in their area. And sometimes the the key behind that is, you know, getting the boots on the ground in that area. Right. To go and, you know, go to these auctions. And not a lot of investors really do that because they don’t see certain opportunity zones that are very, very prevalent, but also very hidden. So uncovering that is the key.

I’ve gotten townhouses, even in my market, for like $10,000. And that’s just really just learning, you know, what a seller really wants, but also knowing how to find them. know, litigations and, you know, probates that are gone bad and people just want out, mold remediation. I love giving the game. So all of those little structures is where those deals can be found. Yeah.

Erika (18:12)

Yeah, yeah, absolutely. you know, those are things too, that not everyone’s willing to put up with, but if you know how to deal with it, then it’s a gold mine.

Nathaniel Cochrane (18:13)

Mm-hmm.

Right? That’s right, correct. Very

much a gold mine, trust me. $2,500 for a five bedroom, bath in the city.

Erika (18:25)

Hahaha!

Nathaniel Cochrane (18:30)

man, that’s a beautiful thing, beautiful thing.

Erika (18:32)

I love it. love it. Nathaniel, this has been so great. Before we go, if someone wants to reach out to you, maybe collaborate on a project or maybe they’re interested in their community, or in your community, how should they reach you?

Nathaniel Cochrane (18:47)

So they can go online, therealestatedeallab.com. I’m there, but I’m also there. You can find me on Instagram, which is the real estate godfather. But all platforms, the real estate dealab, you can find me anywhere there. And I’m always visible on social media. So yeah, they can find me. And tune into this.

Erika (19:06)

awesome

Nathaniel Cochrane (19:09)

amazing podcast because I’m sure you’ll drop all the links as well.

Erika (19:12)

Well, Nathaniel, it was so awesome having you on the show today. We really appreciate all the expertise you shared.

Nathaniel Cochrane (19:19)

Thank you.

Thank you so much for having me. And hopefully this adds a lot of value to the folks that are listening. And just believe in yourself, number one, and believe that you can do it. And with the right team, you definitely can.

Erika (19:32)

Right, right. That is so solid, Nathaniel. And for our listeners, if you got value from this episode, make sure that you’re subscribed to the Real Estate Pro Show. We’ve got more episodes lined up with operators like Nathaniel who are building fantastic real estate empires. We’ll see you on the next episode.

Nathaniel Cochrane (19:50)

Alright, thanks.