Key takeaways
- Scott and Brandon’s journey into the world of real estate began unexpectedly, stemming from their experience selling college textbooks door-to-door.
- Rebuilt’s success is built on the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) method, which allowed them to grow their real estate portfolio rapidly and efficiently.
- Rebuilt didn’t rush into seeking external investment, but when the opportunity arose, they partnered with LL Funds, aligning with their vision for growth.
In this Propcast episode, Justin Lieberknecht, VP of Marketing at Poplar Homes, talks to Scott Pennebaker and Brandon Devlin, the founders of Rebuilt, a company that specializes in a unique approach to real estate. Rebuilt takes distressed properties, revitalizes them through renovation, and makes them available to eager buyers. However, the path that led them to the world of real estate was unexpected, beginning with their experiences in the world of selling college textbooks door-to-door.
This episode delves into their entrepreneurial journey, showcasing their transition from textbooks to real estate and shedding light on their innovative strategies, such as the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) method. It’s a tale of adaptation, determination, and a touch of serendipity that culminated in the creation of Rebuilt, a promising player in the real estate market. Let’s embark on this inspiring journey with Scott and Brandon.
A wholesome beginning
Scott and Brandon’s journey into the world of real estate began in an unconventional way. Before founding Rebuilt, they were involved in the wholesale business, but not the kind you might expect. They were selling college textbooks, an experience that would later prove invaluable in their real estate endeavors.
“We actually sold books door during the summers away from home,” Scott recalls. Their job was akin to a bootcamp for sales, an experience that honed their skills and taught them the art of connecting with people.
Their paths converged while working for Southwestern Advantage, formerly Southwestern Company, during college, and it was there that they built the foundation for their future success. Later, they ventured into real estate individually, with Scott in Lexington, Kentucky, and Brandon in Nashville, Tennessee.
Their chance meeting years later would prove pivotal. Brandon, still in the real estate game, recruited a team of sales representatives and saw explosive growth in the textbook business. Scott, who had been dabbling in real estate himself, sought Brandon’s help in growing his own college textbook company. Together, they recognized their shared passion for real estate and the potential for collaboration.
As Brandon puts it, “We’re already tied at the hip with the book company, why don’t we start buying real estate together?” From 2015 to 2018, they purchased and renovated about 120 properties, primarily through the BRRRR method – buying, rehabbing, renting, refinancing, and repeating. Their business grew rapidly, leveraging a modest credit line and their combined expertise.
The genesis of Rebuilt
In 2018, the idea for Rebuilt was born out of a desire to source off-market properties for their own portfolio. Initially, Rebuilt was a means to acquire properties for their personal investments. However, their marketing efforts attracted numerous opportunities that exceeded their capacity. As Scott puts it, “We’re like, ‘Well, maybe we ought to assign a few to some other investors in the network.'”
With the support of their network, Rebuilt expanded its reach, taking the first steps towards revolutionizing the real estate industry.
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Defining the real estate lingo
In the podcast, Scott and Brandon also clarified some key real estate terms that might be unfamiliar to some:
Real estate wholesaling: This involves getting a property under contract and then assigning the rights to purchase it to another investor. It’s a way to connect sellers with investors who can address their needs.
BRRRR method: An acronym for “buy it, rehab it, rent it, refinance it, then repeat.” This strategy allows investors to obtain financing for a property purchase and renovations, and ultimately maintain equity in the property.
Expanding the vision with LL funds
The founders didn’t rush into seeking external investment, but when the opportunity presented itself in the form of LL Funds, they embraced it. LL Funds shared their vision for growth and became strategic partners in Rebuilt’s journey.
This partnership allowed Rebuilt to accelerate its expansion into different markets, working towards becoming the go-to brand for real estate investing, especially for individual investors.
Scott’s role as CGO
As Chief Growth Officer (CGO) of Rebuilt, Scott plays a crucial role in the company’s growth. His focus is on establishing new verticals that complement Rebuilt’s cash offer business. These include Rebuilt Offers (the cash offer arm), national title services, Rebuilt Capital (the lending arm), and the recently launched Rebuilt Brokerage.
Scott emphasizes the importance of maintaining an ecosystem that caters to the specific needs of mom-and-pop investors. Rebuilt aims to offer a comprehensive platform where investors can buy, sell, manage, and even list their properties with ease.
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Concluding thoughts
The journey of Rebuilt, from college textbook sales to becoming a disruptive force in the real estate industry, is a testament to the power of collaboration, innovation, and a growth-oriented mindset. Scott, Brandon, and their team have created a platform that not only serves their interests but also empowers individual investors to achieve their real estate goals.
In their mission to reach the metaphorical “Mars” of real estate success, Rebuilt has set its course for innovation and expansion, with the sky as the limit. As Scott aptly puts it, “We want to create an ecosystem that can help grow a business for mom-and-pop investors.” Rebuilt is on a trajectory to transform the way real estate is done, and the future looks promising for this dynamic company.
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