My interview with Kyle Doney of LVN Real Estate is the third in the Book Contributor Interview Series. Kyle wrote chapters for both the 2019 and 2020 Guide to Denver Real Estate Investing Strategies books. Terrance Doyle joins me as co-host as we talk about how Kyle went from active duty military to the reserves then to college and started a couple businesses all before getting into real estate in 2013 after reading and learning about it on BiggerPockets. His business has seen great growth in the last couple of years, and he ended 2019 with 62 deals under contract and 42 closed within that year.
The majority of Kyle’s real estate business today is fix and flips, but he does wholesaling and owner-financed properties as well. In 2013 he started in real estate by buying 2 rentals. His first was a $25,000 house he found on Craigslist in Greeley. He admits he made many mistakes with the property but learned a lot and still owns it.
Kyle talks about how he really started ramping up his real estate business in 2016 by streamlining his other business operations, so he could focus full time on real estate. After losing money on different flips in 2016, he was still able to pull through because of the income from his other businesses. His advice on partnerships (do one-offs and map out each party’s responsibilities clearly in writing at the outset) was learned as a result of a bad partnership in that same year.
Kyle looks at every property first through the lens of a flipper but will wholesale a property or keep it as a rental if it doesn’t make sense as a flip. He views his success as the result of finding the right people for his team.
He has expanded beyond Denver into the markets of Pueblo, CO, Cheyenne, WY, Raleigh, NC, and Little Rock, AR. He runs the same model, doing mostly flips and some light rehabs. He discusses the challenges of out-of-state investing including attorney vs title states and the effect on the closing process.
(TIP: Check out the Out-of-State Investing podcast with Terrance Doyle for additional insights.)
How the Coronavirus Has Impacted Flipping in Denver
Kyle has seen his business impacted by the pandemic in a good way. Things have gotten crazy, but he started seeing a lot more opportunities, because other people like him stopped buying. He also saw a decrease in sellers wanting to sell, so the supply decreased but the demand remains huge. He received 25 offers on one of his latest properties. He tightened up his underwriting and got more conservative but never stopped buying or stopped flipping operations. He knows everything could change, so he watches it closely, ready to adjust his strategy as the market changes. He has never been a high leverage type of guy and is more of a saver, happier with a fair amount of equity in a property. However, being an entrepreneur, he recognizes that you have to take some risk to get ahead.
Kyle recorded a podcast with me in February 2019 called Denver Flipping and Wholesaling w/Kyle Doney. In it he talks about marketing trends and ad costs. He says marketing is less effective at the moment due to the Coronavirus. He’s having to spend more to increase his marketing efforts in order to get to the right people who need to sell.
Connect with Kyle Doney
Submit a Chapter for the 2021 Guide to Denver Real Estate Investing Strategies Book
To submit a chapter for consideration for the 2021 Guide to Denver Real Estate Investing Strategies book, bookmark this page.
Grab a copy of the 2020 Guide to Denver Investing Strategies book for yourself.
YouTube Video: 2020 Book Interview with Kyle Doney
Podcast: Play in new window | Download (Duration: 41:47 — 47.8MB)
Subscribe: Google Podcasts | Spotify | Stitcher | Email | TuneIn | RSS | More