REI045: REAL ESTATE INVESTING LIKE A HOME INSPECTOR

W/ JUSTIN EATON

24 November 2020

On today’s show, I sit down with Justin Eaton to talk about his journey into real estate investing and how he looks at it through the lens of a home inspector. Justin is a successful real estate investor himself, having completed over 14 flips, as well as wholesale, BRRRR, house-hack, and live-in-flip deals. He is also the founder of South Jersey Real Estate Investor Group and Owner of DwellSafe Inspections & Engineering.

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IN THIS EPISODE YOU’LL LEARN:

  • How home inspectors view potential investment properties differently.
  • Major red flags to look out for in potential properties.
  • What makes for great rental properties and flips.
  • Major mistakes new investors make.
  • Repairs and inspection issues that are exaggerated and can be a good source for deals.
  • And much, much more!

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TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

Robert Leonard  0:02  

On today’s show, I sit down with Justin Eaton to talk about his journey into real estate investing and how he looks at it through the lens of a home inspector. Justin is a successful real estate investor himself, having completed over 14 flips, as well as wholesale, BRRRR, house-hack, and live-in-flip deals. He is also the founder of South Jersey Real Estate Investor Group and Owner of DwellSafe Inspections & Engineering. Let’s dive right into this week’s episode.

Intro  0:32  

You’re listening to Real Estate Investing by The Investor’s Podcast Network, where your host Robert Leonard interviews successful investors from various real estate investing niches to help educate you on your real estate investing journey.

Robert Leonard  0:53  

Hey, everyone, welcome to today’s show. As always, I’m your host, Robert Leonard. With me today, I have Justin Eaton. Welcome to the show, Justin.

Justin Eaton  1:01  

Hey, Rob. Thanks for having me, man.

Robert Leonard  1:03  

For the audience who are not familiar with you, tell them a bit about your background, your story, how you got to where you are today.

Justin Eaton  1:09  

I graduated college in 2012 with a civil engineering degree. I kind of fell into a job doing home inspections and structural engineering. I wasn’t really into the job too much. At first, I thought, “Hey, I just went to college. I got an engineering degree. I’m working for this small company doing mostly home inspections.” I wasn’t really into it at first and I was kind of sending feelers out for other jobs. I ended up just sticking it out. 

I got better at the home inspection stuff and eventually, I got my home inspectors license. 

Then in 2015, I partnered up with the owner of that company. We did our first flip property and we did seven flips together. Afterwards, we kind of went our separate ways from the investment standpoint, but I was still working for him. 

In 2018, he’s a little bit older so he’s thinking about retiring. We then were talking about how I was going to buy the business from him. Ultimately, it didn’t end up working out. 

I started my own business in January of 2019 for home inspections and structural engineering, and then investing in real estate since 2015 on the side.

Robert Leonard  2:11  

What does your real estate portfolio look like? What have you done for deals? How many units do you own?

Justin Eaton  2:17  

Between 2014 up to now, I’ve done 15 flips. Seven of those were with that original partner. The others were solo. I have done one wholesale deal. I have one single family rental now that I did the BRRRR method on. I’m actually in the process of doing another BRRRR method now. 

One of my second live-in-flip or second living investment properties… The first one was like a live-in-flip slash house hack where I bought a property and renovated it. Then I moved into it and had somebody rent one of the bedrooms. 

In 2017, I sold that property and bought an up and down duplex. Then I moved into the first floor. I had an upstairs tenant. It also has a three-car detached garage that I ran out separately so it covers 65% of my living expenses between principal insurance taxes. That’s kind of where I’m at right now. I’m kind of transitioning into apartment syndication.

Robert Leonard  3:06  

Based on that timeline, it sounded like you started with flips before you got into your house hack.

Justin Eaton  3:11  

That first one I bought to live in that was before I knew anything about real estate investing at all. I kind of bought it as I needed somewhere to live. My parents were splitting up and they’re selling the house. 

My boss came across this property and he was going to buy it as an investment and said, “Hey, I know you’re looking to move somewhere. This property is up for sale, if you want it. If you can make it work, do it.” It was a house in need of a rehab. That was before I really knew anything about real estate investing. 

Then maybe a year and a half later was when I started learning about real estate investing. That was when we did our first flip. 

Robert Leonard  3:43  

How’d you know you were ready to do a flip and why’d you choose flips over going into a rental?

Justin Eaton  3:49  

I saw people who were doing flips. From an outsider standpoint, it thought they’re making really good money. They’re making $20,000 to $50,000 at a time doing flips, which is obviously attractive to a 23-year-old. So that interested me. That’s kind of what it was. I can supplement my full-time job income with a flipper to a year. It’s a pretty significant increase in active income.

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