EP. 26 // How to Do 200 Deals A Year… Virtually! w/ Adam Devine
On today’s episode we have the co-founder of Perch Rock Management and Dorrance Realty, Adam Devine out of Hamden, Connecticut. Adam is an entrepreneur and real estate investor with a plethora of knowledge of the business, closing up to 200 deals a YEAR, on a completely virtual platform. On today’s episode, David and Adam talk about how Adam shot his shot to end up partnering with his boss, the incredible upside to Novation deals instead of tradition wholesaling, and Adam’s strategy of retaining buyers by consistently creating revenue over a high volume of deals even in tough times.
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Key Points from This Episode:
In 2016, Adam was finishing up school when he realized that traditional corporate America wouldn’t work for him. As soon as he graduated, he learned about wholesaling real estate. He started on his own before meeting up with his current partner, Bob LaChance. He first worked for his partner at Reva Global; he stopped working FOR Bob and ended up becoming partners with him!
They launched Perchrock Management in 2019, right before the onset of COVID-19. They bought rentals, fix and flip, before focusing on their most profitable verticals: wholesale! They ended up rejecting the shiny object syndrome and dialed in on scaling wholesaling. They’re on track to doing +200 deals this year alone.
In 2020 Adam and his partner learned about Novation, a process of bringing deals to the MLS. Eric Brewer specializes in this process. Adam talks about the importance of a good team due to the complicated legal nature of the process, it is NOT a one man process. You need lawyers, the right capital partner, transaction coordinator etc.
A novation is a substitution of a purchase agreement.
Adam’s secret sauce is consistency: doing the little things, and finding the right team. Finding a good partner with an aligned vision and complementary skillsets will be a solid foundation to growing. Are you out drinking or improving your skills? Are you growing or procrastinating? Adam says that he isn't the smartest guy, but a hard worker and consistent one. He acquires good deals and sells them properly, with sales and marketing being their strength in the marketplace.
Failing to prepare is preparing to fail. Have a process in place for your highest revene generating activities. Have a strategy for tightening the belt.
Adam’s focus in this current market is saving capital and offloading assets. 85% of his deals will be Novation deals, the conventional market is drying up. Non hard money buyers are lessening. Due to rate changes, their numbers are being run differently. If they can’t, they whole-tale.
Once things get more comfortable in the economy, buyers will remember those who were able to create revenue in tighter times. On average they make $28,000 per Novation. Don’t be greedy on these spreads, go for volume over one particularly fat deal.
The average purchase price in Connecticut is single families for $85-200,000. This depends on the market that it’s purchased in.
Adam’s advice is to slow down and be patient: taking advantage of opportunities the correct way is the best way to find success. Opportunity is infinite but time is limited: you can always take action, don’t let anyone’s limiting beliefs hold you back.
Relevant Links from Today’s Episode:
ABOUT ADAM DEVINE
Adam Devine is the Co- Founder of Perch Rock Management, a nationwide acquisition & wholesale company and Dorrance Realty, a licensed brokerage in 6 states. Adam owns a rental portfolio and has done more than 500 transactions in his career. Adam is 30 years old and resides in Hamden, CT.
