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Speaker 1: Somebody that's watching this right now. That's like I've never

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Speaker 1: owned a piece of real estate. I've never had any momentum,

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Speaker 1: I don't have any track history. I could never do

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Speaker 1: what Pace is doing. I'm telling you right now, everything

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Speaker 1: I do, you could do it today, And I'll tell

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Speaker 1: you guys how to make money today doing what I'm doing.

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Speaker 2: Can you imagine buying hundreds of millions of dollars of

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Speaker 2: real estate cash flowing real estate and never having new

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Speaker 2: credit check, never have to put money down, and none

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Speaker 2: of it being in your name.

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Speaker 1: And I gave the guy a dollar down. Why why

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Speaker 1: was a guy willing to sell a twenty acre parcel,

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Speaker 1: eight thousand square foot brand new bills with thirty five

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Speaker 1: hundred square foot brand new barn. Why was he willing

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Speaker 1: to sell that to me three point seven million dollars

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Speaker 1: for one dollar?

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Speaker 2: Then it's amazing, right, this is exactly what my next guest,

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Speaker 2: Pace Morby has managed to do. He has completely changed

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Speaker 2: the world as we know it, which is takes money

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Speaker 2: to make money. He is going to walk us through

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Speaker 2: his exact process and what you could do if you

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Speaker 2: were starting literally from zero, how you make your first move,

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Speaker 2: your second d your third move and how you could

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Speaker 2: buy hundreds of millions of dollars worth of assets just

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Speaker 2: like him. He has changed the game. He's rewriting the

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Speaker 2: financial books. He's disrupting the financial institutions that are that

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Speaker 2: are old, legacy, corrupt, and they're falling apart. He's going

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Speaker 2: to show us a new way. So Pace Man, we've

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Speaker 2: been talking for a long time before we start recording.

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Speaker 1: As got me convinced to just sell everything and go

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Speaker 1: into bitcoin. Mark don't do that. It's part of the game, right,

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Speaker 1: So it's one asset that you can leverage. So that's

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Speaker 1: where I want to jump in. Actually, I want to

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Speaker 1: talk about the money game. So I kind of laid

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Speaker 1: out the money game, as we both agree, is to

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Speaker 1: get assets. You're obviously acquiring thousands of properties. I talk

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Speaker 1: about market disruptors, and so we talk about disrupting markets.

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Speaker 1: I like to think about the five legacy institutions that

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Speaker 1: need to be disrupted. So media, I think you're doing

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Speaker 1: a good job on that finance, You're obviously disrupting finance.

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Speaker 1: I also think about health needs to be disrupted, Education

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Speaker 1: needs to be disrupted, Like these are decrepit institutions and

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Speaker 1: you're really disrupting a couple of those. For sure, you're

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Speaker 1: the king of creative finance.

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Speaker 2: I don't know. Self proclaimed gam I'm giving you that.

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Speaker 2: But let's talk about the money game for a second. Okay,

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Speaker 2: So we talked about the game of money getting assets.

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Speaker 2: What game are you playing?

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Speaker 1: I'm playing the game of holding right. We talked about

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Speaker 1: that as well, storing my wealth inside of hard assets

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Speaker 1: that I can understand. I'm a contractor by trade. You

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Speaker 1: and I did it. You know you've done a lot

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Speaker 1: of building in your life. I am a contractor. Basically,

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Speaker 1: my father twelve kids. I was one of twelve kids,

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Speaker 1: learned how to work with my hands, and the barbarian

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Speaker 1: in me, the person that just wants to build stuff,

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Speaker 1: understands brick and mortar. So the game that I've been

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Speaker 1: playing for the last ten years is just accumulating a

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Speaker 1: lot of cash flow and rentals and keeping them, holding them,

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Speaker 1: keeping it. Kind of like Ken Macroy another guest that

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Speaker 1: you had a recently amazing episode. If you guys haven't

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Speaker 1: watched that episode, go watch that. I'm playing the same

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Speaker 1: game Ken's playing, which is to acquire as many properties

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Speaker 1: as you can acquire as many properties as I can,

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Speaker 1: without any money, without any credit, without credentials, W two,

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Speaker 1: without tax returns, without any of that kind of stuff,

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Speaker 1: like literally everything that people thought they needed to buy

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Speaker 1: real estate. I obliterated all of those things and said,

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Speaker 1: how about we just pretend I have none of those things,

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Speaker 1: and I'll still go out and buy a real estate.

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Speaker 1: So I've focused on creative finance, which allows me to

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Speaker 1: do all of that. That's the game. That's the game.

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Speaker 1: So that's what I want to talk about. The game

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Speaker 1: I play is that, which is I have two thousand

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Speaker 1: rentals in my portfolio. I've never used a bank. I've

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Speaker 1: never pulled my credit literally never pulled my never well

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Speaker 1: on other things like when I was sixteen I bought

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Speaker 1: my first car. Eighteen, I bought my first car. But

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Speaker 1: I have nothing on my credit. I don't even know

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Speaker 1: what my credit report is. And I have half a

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Speaker 1: billion dollars in assets in my portfolio. So wow, Yeah,

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Speaker 1: no banks, nothing at all. I'll get people that will

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Speaker 1: send me letters and emails. Hey, Pace, I'd love to

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Speaker 1: be your lender. I'm like, I don't need lenders. I

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Speaker 1: work directly with the sellers and I buy their houses.

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Speaker 1: RV parks, mobile home parks, multifamily, and a lot of

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Speaker 1: single family started in single family. And I basically took

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Speaker 1: what everybody told you, which is, you need big down payments.

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Speaker 1: No you don't. You need credit. I absolutely do not

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Speaker 1: need credit for anything I'm doing. You need a W two,

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Speaker 1: You need a good safe W two. You and I

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Speaker 1: both like are unemployable human beings. So I've never had

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Speaker 1: a W two in that sense. And credentials like tax returns,

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Speaker 1: seasoned money in your bank account, right Like a lot

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Speaker 1: of lenders will go, well, we will give you money

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Speaker 1: to buy this thing, but we want to see seasons cash.

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Speaker 1: Nobody even Chas checks my bank balance when I buy

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Speaker 1: these assets. So I'm playing a different game.

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Speaker 2: That's what I want to talk about, a different game.

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Speaker 1: So you you.

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Speaker 2: Know what happens is though we get these antidote antodot stories,

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Speaker 2: these quotes in our head like, and people get sort

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Speaker 2: of tony Robins would call it like chains of false belief.

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Speaker 2: And so the chain of false belief, and I leave

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Speaker 2: you wrote a book to adjust this one is it

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Speaker 2: takes money to make money, and so people have heard

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Speaker 2: that it takes money to make money, and then they

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Speaker 2: allow that to sort of hold them back. And you

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Speaker 2: wrote a book which was how to make money with

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Speaker 2: no money. It's called Wealth without cast Wealth without Cash.

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Speaker 1: Yeah, and you know, similar to you, like when you

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Speaker 1: got into the game, right, you were buying VA repos,

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Speaker 1: like the VA took a house back over and they're

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Speaker 1: giving you these houses with no money down. Before you

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Speaker 1: had done that, you were like, there's no way I

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Speaker 1: I'm going to get into real estate. I'm nineteen years old.

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Speaker 1: What do I have. I don't have credentials, I don't

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Speaker 1: have a W two in that sense, I don't have cash,

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Speaker 1: I don't have credit. And VA is just like take

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Speaker 1: this house. Yeah. I was.

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Speaker 2: I was so new and naive that I didn't know

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Speaker 2: that those things would hold me back.

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Speaker 1: Yeah. I just thought it was being done. I was like, cool,

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Speaker 1: isn't that funny? Yeah. Meanwhile, there's millions of people across

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Speaker 1: the country that are like, how I wish I could

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Speaker 1: get into real estate. Meanwhile, a nineteen year old you

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Speaker 1: is here in La of all places, getting a deal

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Speaker 1: with no money down, right, Like you didn't have to

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Speaker 1: challenge those beliefs. Thank goodness you didn't. I did. My

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Speaker 1: beliefs were my dad ironically, I'm hanging out with Tony Robinson.

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Speaker 1: Like a week I'll be at his private house with

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Speaker 1: him and Dean grazios. I get to do that every summer,

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Speaker 1: which is fun. And my dad and I would go

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Speaker 1: drive around on construction jobs and my dad would listen

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Speaker 1: to tapes from Tony Robbins. He would tell me, paste,

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Speaker 1: you got to get into real estate. We got to

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Speaker 1: save these down payments. And that's the programming I got

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Speaker 1: in my life, every from everywhere. All the programming I

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Speaker 1: got was you need all of those things. I call

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Speaker 1: it the three c's. You need cash, credit credentials. Credentials

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Speaker 1: are like tax returns, a W two or even seasoned

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Speaker 1: money sitting in your bank account. And so, I unfortunately

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Speaker 1: got into construction twenty from age twenty to age thirty,

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Speaker 1: and I lied to myself and I didn't do the research.

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Speaker 1: I basically for my twenties, I made a lot of money.

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Speaker 1: My biggest customers were Open Door, offer Pad and Zillo,

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Speaker 1: and so I was doing all their rental turns and

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Speaker 1: I convinced myself I was in real estate by doing so,

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Speaker 1: I'm like, oh I am in real estate. I've made it.

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Speaker 1: I'm in real estate. I'm touching all these houses, I'm

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Speaker 1: doing all these things. Yeah, had massive crews, did all

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Speaker 1: these things. And it wasn't until I had a lady

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Speaker 1: named Bethany that came to me and she's like, you're

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Speaker 1: lying to yourself. You're not actually in real estate. You

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Speaker 1: are a slave to the people who are in real estate.

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Speaker 1: You need to get into real estate. And my answer was, well,

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Speaker 1: I don't have any cash, I don't have any credit,

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Speaker 1: I don't have any credentials, like I have my own business.

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Speaker 1: Nobody will give me a loan. And she's like, what

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Speaker 1: does that have to do with anything? And she showed

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Speaker 1: me the path and she sat down with me, taught

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Speaker 1: me how to get my first real estate deal. I

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Speaker 1: made twenty five thousand dollars just kind of selling it

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Speaker 1: to her, and I was off to the races and

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Speaker 1: I'm like, I got addicted to it.

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Speaker 2: Yeah, I learned learned OPM other people's money. And so

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Speaker 2: I always said, man, like I deal with investing mostly,

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Speaker 2: and so like, investors are always looking for good deals

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Speaker 2: and so like, if you have a good deal, there's

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Speaker 2: always money for that. But you did it without OPM.

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Speaker 2: I mean, you're literally going after the bank's money. I mean,

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Speaker 2: you're assuming loans. So let's talk about that creative finance.

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Speaker 2: That's kind of your specialty, creative finance. So what is

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Speaker 2: this creative finance? You're not using other people's money necessary

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Speaker 2: in a way, you are, but not in the traditional

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Speaker 2: way that I thought. You're not going out and try

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Speaker 2: like get an investor to like go in.

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Speaker 1: Yeah, that was another skill too. Another skill that you're

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Speaker 1: referencing in OPM is a very daunting skill, which is

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Speaker 1: raising capital. And when you're brand new, you're like, how

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Speaker 1: do I talk to somebody about taking money from their

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Speaker 1: four oh one K and putting into my real estate deal?

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Speaker 1: That sounds like a very daunting task and it is,

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Speaker 1: and there's people that take years to learn how to

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Speaker 1: do that, especially with no credentials, especially no credentials, no

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Speaker 1: track history, no nothing. Right, Like somebody that's watching this

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Speaker 1: right now, that's like, I've never owned piece of real estate.

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Speaker 1: I've never had any momentum, I don't have any track history.

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Speaker 1: I could never do what Pace is doing. I'm telling

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Speaker 1: you right now, I'm looking straight at you. Everything I do,

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Speaker 1: you can do incredibly like you could do it today,

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Speaker 1: and I'll tell you guys, like how to make money

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Speaker 1: today doing what I'm doing, and I want to dig

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Speaker 1: into that, Yeah, I'd love to. And what I do

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Speaker 1: is I do not assume loans. Okay, an assumption requires

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Speaker 1: a credit check. I don't do assumptions. I do what's

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Speaker 1: called subject too, and subject too means I'm going to

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Speaker 1: let's do just do it this way. It's very simple

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Speaker 1: for people that are watching. Let's say that I'm brand new.

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Speaker 1: You drop me in the middle of a cornfield in Oklahoma.

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Speaker 1: We're obviously in Soco right now. Your audience knows you're

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Speaker 1: in Soco. You drop me in the middle of nowhere, Oklahoma.

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Speaker 1: I've never even been there. I have no resources, I

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Speaker 1: have no network, I have not even a phone, and

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Speaker 1: I need to make money today. Well what do I need?

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Speaker 1: I need a phone? Okay, So I'm going to run

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Speaker 1: to a library. I'm going to go on Craigslist. And

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Speaker 1: what I'm going to do is I'm going to look

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Speaker 1: for a phone. And I asked the library, hey, can

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Speaker 1: I use your phone. I'm going to try and reach

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Speaker 1: out to this person or message them on Craigslist, and

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Speaker 1: I'm going to try and buy a phone with no

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Speaker 1: money down. This is how creative finance works. I'll get

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Speaker 1: into real estate how it works with real estate, but

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Speaker 1: this is how it works with phones. It helps people

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Speaker 1: that are brand new to this really understand it. I

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Speaker 1: see a guy that's had his iPhone fourteen listed for

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Speaker 1: a couple of weeks. It's a listed a little bit high.

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Speaker 1: He's obviously planning on somebody low balling m and so

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Speaker 1: I reach out to him and I go, hey, I

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Speaker 1: see your iPhone fifteen is listed for six hundred dollars

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Speaker 1: and it hasn't sold yet. I will pay you that

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Speaker 1: six hundred dollars, but I want to pay it to

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Speaker 1: you monthly. I'll pay you sixty dollars a month for

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Speaker 1: the next ten months. Would you be willing to do that?

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Speaker 1: And the seller says, yeah, I haven't sold it. I

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Speaker 1: have a little bit of pain. I want to get

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Speaker 1: rid of this phone. I'm cool taking payments. That's called

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Speaker 1: seller finance. Price for the terms, price or terms right,

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Speaker 1: So I'm not going to argue the price. And I'll

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Speaker 1: tell the seller straight up, hey, I'm not going to

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Speaker 1: argue your price. I'm sure other people are probably offering

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Speaker 1: four fifty five hundred. I'll give you your six hundred, But

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Speaker 1: for you doing, you know, selling this property to me

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Speaker 1: or this phone to me on seller finance, I will

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Speaker 1: give you that price. So you get price, I get terms.

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Speaker 1: And so what I actually do is I've done this

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Speaker 1: lo I've on my YouTube as well, where I'll call

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Speaker 1: and I'll buy camera equipment, cars, planes, businesses, all without

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Speaker 1: any money down by just saying, hey, I see your

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Speaker 1: price that you're looking for. Will you let me just

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Speaker 1: make you payments? Now, what would I do with that phone?

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Speaker 1: I pick up that phone. Now we all know, like

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Speaker 1: I could do one thousand things with a phone to

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Speaker 1: go start making money today. I could cold call, I

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Speaker 1: could work for another company. I could uber eat, So

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Speaker 1: I could do a thousand different things to make money

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Speaker 1: today using a cell phone. So I don't care about

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Speaker 1: the sixty bucks. What I care about is I just

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Speaker 1: got a phone, an asset that I can go and

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Speaker 1: make more money than what the thing is costing me. Right,

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Speaker 1: that's seller finance. Now let's say I call another person

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Speaker 1: and I go, hey, I'll make you sixty dollars payments

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Speaker 1: to that phone. They go, I can't do that. I'd

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Speaker 1: love to do that, but I have payments I owe

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Speaker 1: to AT and T. I have not paid the phone

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Speaker 1: off yet. All I do is I go, let me

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Speaker 1: just take over your payments to AT and T. And

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Speaker 1: they go, oh you can do that, Go, yeah, of

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Speaker 1: course I can do that. So I'll buy a phone

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Speaker 1: on Craigslist by just taking over the payments that they

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Speaker 1: already have with AT and T. I don't have to

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Speaker 1: do a credit check. I don't I have to get

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Speaker 1: AT and t u's approval. I just take the phone

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Speaker 1: and I make the payments on their behalf. That's called

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Speaker 1: subject too. So I do this with real estate. So

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Speaker 1: now what I do is, I'll go, all right, what

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Speaker 1: asset class do we like? Do we like single family?

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Speaker 1: We like RB parks? Do we like dirt? Do we

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Speaker 1: like multifamily? What do we like hotels? Doesn't matter. I

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Speaker 1: can go on a variety of websites. I'll give you

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Speaker 1: a couple of like specific ones. If I was going

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Speaker 1: to start today and I had to make money today,

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Speaker 1: here's what I would do. I would go on Crexy

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Speaker 1: cre Xi dot com and I'd go on Crexy and

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Speaker 1: I would filter owner finance. They have listings on owner Finance.

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Speaker 1: I could buy a gas station. I could buy a

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Speaker 1: car wash. I could buy a cash flowing asset to

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Speaker 1: day with no money down by just calling a seller

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Speaker 1: and saying, hey, i'd like to have I'd like to

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Speaker 1: make payments to you if you would sell this to

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Speaker 1: me at the price you're offering. I'm not calling people

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Speaker 1: that just listed it today. I'm calling people that listed

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Speaker 1: it five months ago and still haven't sold it. So

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Speaker 1: I'm finding people have specific pain and I'm buying something

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Speaker 1: that's making monthly income basically. Yeah. So best asset that

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Speaker 1: I've done is actually right down the road in Yuma.

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Speaker 1: It's an eighty five unit mobile home park and the

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Speaker 1: seller's retiring. If a seller of an eighty five unit

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Speaker 1: mobile home park that's owned this thing for twenty years,

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Speaker 1: he's self managed it for twenty years, if he wants

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Speaker 1: to retire mark without paying taxes, how does he sell

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Speaker 1: that asset?

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Speaker 2: Yeah, good luck, good luck.

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Speaker 1: You don't you leverage it with debt. You either leverage

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Speaker 1: it with debt, which now you're not retiring, You're still

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Speaker 1: in the game. You're still playing that game. Or b

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Speaker 1: you sell it and you ten thirty one into a

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Speaker 1: larger asset, which now is a larger headache. That's not

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Speaker 1: retirement for a lot of these mom and pop sellers.

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Speaker 1: So what seller finance does is seller finance allows me

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Speaker 1: to help him mitigate all his capital gains tax. So

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Speaker 1: I go to the seller and I go, hey, I

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Speaker 1: see you're trying to sell that mobile home park. If

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Speaker 1: you do a zero down deal, no money down, and

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Speaker 1: you sell it to me at zero percent interest, which

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Speaker 1: I bought at zero percent interest, I will give you

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Speaker 1: that six hundred thousand dollars you've been trying to sell

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Speaker 1: it for for the last nine months. Seller says okay,

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Speaker 1: And so I make a payment to that seller for

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Speaker 1: eleven thousand dollar month. He's got thirty years of eleven

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Speaker 1: thousand dollars monthly payments, and that park brings in thirty

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Speaker 1: five thousand dollars a month in cash in all the

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Speaker 1: rents and after management all the expenses. I met somewhere

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Speaker 1: around twenty thousand bucks a month on a zero down,

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Speaker 1: zero percent interest mobile home park. That sounds daunting, But

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Speaker 1: you can do this with single family, you can do

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Speaker 1: this with multifamily, you can do it with apartment buildings,

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Speaker 1: all that kind of stuff.

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Speaker 2: So I mean I get that. You know, we talked

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Speaker 2: about a lot. I've done a lot of hard money

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Speaker 2: loans and stuff like that, which is then you're at

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Speaker 2: least guaranteed. I did you know, invoice factory. I've done

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Speaker 2: a lot of type of loans, but there's some sort

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Speaker 2: of guarantee because I don't know who you are, I

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Speaker 2: don't know what your credit is. So I'm going to

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Speaker 2: give you this phone. I mean, let's just go back

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Speaker 2: to the phone example. I'm gonna give you this six

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Speaker 2: hundred dollars phone, but like, how do I know you

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Speaker 2: don't just run off with the phone?

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Speaker 1: Yeah? Or if I if you're.

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Speaker 2: Gonna take over my payments with AT and T, But

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Speaker 2: like what if you don't make the payment and then

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Speaker 2: I don't have the phone and I'm on the hook

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Speaker 2: for the loan.

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Speaker 1: There's definitely risk involved. Same thing with a hard money loan.

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Speaker 1: There is no guarantee, right you could I have the trustee, Yeah,

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Speaker 1: but even at the end of the day, if you

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Speaker 1: let's say that I borrow money from a hard money

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Speaker 1: lender and I take the money, I go buy the asset,

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Speaker 1: and I mismanage my construction and I screw things up,

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Speaker 1: and then I stopped making the payments. Happened there you go,

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Speaker 1: so hard money lenders don't have guarantees. Banks don't have guarantees.

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Speaker 1: There is no guarantee in life, so there is there's

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Speaker 1: no absolute guarantee.

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Speaker 2: So but I'm sure it's a question that you get

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Speaker 2: asked all the time. If I'm going to call back

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Speaker 2: to the first example, I'm gonna call on Craigslist and say, hey,

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Speaker 2: let me take up your phone, I would imagine the

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Speaker 2: first question I would have if someone offered that to

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Speaker 2: me is like, how do I know you're gonna pay me?

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Speaker 1: Great question, probably number one?

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Speaker 2: And if you're going to pay at and t what

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Speaker 2: happens if you don't pay and now I don't have

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Speaker 2: the phone and I can't pay?

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Speaker 1: It's a risk.

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Speaker 2: There's a number one question people ask. How I answer

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Speaker 2: that a.

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Speaker 1: Couple of things, First and foremost, great question, And yes,

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Speaker 1: that is a very big risk that they have to take,

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Speaker 1: So they have to weigh their risk in the reward.

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Speaker 2: Right.

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Speaker 1: It's just like buying bitcoin. Could the thing go from

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Speaker 1: fifty six thousand dollars to day down to twenty thousand

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Speaker 1: dollars in two months? Could happen? Right, So there's risk

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Speaker 1: associated with everything. The thing you have to weigh is

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Speaker 1: what's the gain that I really want? So I'm looking

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Speaker 1: for a seller who I already know has a motivation

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Speaker 1: of selling something at a specific price, and they have

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Speaker 1: failed to do so. So I'm going to them and saying, hey,

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Speaker 1: you're obviously looking for a reward. Here's the risk that

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Speaker 1: I want you to trade. Are you willing to do that?

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Speaker 1: And so the answer you're going to get, just like

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Speaker 1: anything in business, you're going to get nos A lot

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Speaker 1: of them. I actually had this was really interesting about

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Speaker 1: six years ago. I had one of my friends goes, hey,

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Speaker 1: can I come and shadow your office? Your acquisition people

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Speaker 1: are making calls these sellers and buying all these properties

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Speaker 1: on seller Finance and subject too. Can I shadow you?

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Speaker 1: And I go, yeah, come on to the office. I

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Speaker 1: won't be in town, but go to the office. He

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Speaker 1: hangs out of the office all day long. At the

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Speaker 1: end of the day he calls me, goes, bro, I

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Speaker 1: just had like the greatest epiphany. I've been just been

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Speaker 1: holding myself back. And I go, what was the epiphany?

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Speaker 1: What was the thing you learned? And he goes, I

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Speaker 1: spent all day with your team, and the number one

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Speaker 1: thing I took away was how many times they hear

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Speaker 1: the word know and they just keep going sales one

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Speaker 1: on one, sales one on one. And so, of course

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Speaker 1: I can make it sound easy, it does require picking

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Speaker 1: up the phone and it does require you doing some

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Speaker 1: of those things. Now, the other side of it is,

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Speaker 1: if you don't want to be the person on the

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Speaker 1: phone negotiating and getting people convinced to give their house

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Speaker 1: and hand the keys over, you can also be just

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Speaker 1: a buyer.

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Speaker 2: Right.

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Speaker 1: We assign a lot of these deals, bird dogging as

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Speaker 1: you called it. Right, I'll find a deal and I'll go,

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Speaker 1: that's not really a deal I want, but I'll structure

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Speaker 1: it and then I'll just sell it to somebody and go, hey,

403
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Speaker 1: you can take this zero down seller finance deal over

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Speaker 1: for twenty thousand bucks or whatever.

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Speaker 2: I know, Like obviously like selling businesses, this happens all

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Speaker 2: the time.

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Speaker 1: Yeah, we just bought We just bought one with creative finance,

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Speaker 1: seven million dollar business like six months ago. Just took

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Speaker 1: over fifty percent of the company with no money down. Yeah.

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Speaker 2: So that and then even like the RV park, like

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Speaker 2: you're talking about my home park or whatever it was.

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Speaker 2: I mean, if there's an asset and you stop paying,

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Speaker 2: I just take the asset back. So worst case scenario,

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Speaker 2: I gotta take the business back. Maybe it's not as

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Speaker 2: in good shape, or the RV park's not as a

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Speaker 2: good shape or whatever. But I can deal with that

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Speaker 2: versus when there's a loan involved.

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Speaker 1: You know.

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Speaker 2: Now there's like because legally I'm still going to be

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Speaker 2: on the hook for the loan.

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Speaker 1: Correct, Yeah, your credit is still on the hook.

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Speaker 2: Yeah. So you've taken over the loan, but I'm on

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Speaker 2: the hook, correct.

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Speaker 1: Yeah. So let's paint the picture of somebody that's typically

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Speaker 1: selling subject to Okay seller finance is usually the person

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Speaker 1: selling on sellar finance, and what they're looking for is gain.

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Speaker 1: The person that's selling on subject too is usually trying

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Speaker 1: to avoid some sort of pain. So I call it

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Speaker 1: pain and pain gain and pain. Seller finance sellers that

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Speaker 1: just want too much money. Right, I'm trying to retire.

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Speaker 1: I know that when I sell this property on the MLS,

432
00:17:16,880 --> 00:17:19,320
Speaker 1: I've got to pay agents, I've got to pay closing costs. Now,

433
00:17:19,320 --> 00:17:21,840
Speaker 1: I've got you know, capital gains tax. So I'm going

434
00:17:21,920 --> 00:17:24,240
Speaker 1: to sell it as high as I possibly can. You know,

435
00:17:24,240 --> 00:17:26,119
Speaker 1: it's kind of like you like, you have this building

436
00:17:26,200 --> 00:17:27,879
Speaker 1: that you're in right now, you had it listed for

437
00:17:28,040 --> 00:17:30,399
Speaker 1: you had an offer at eleven million, but you had

438
00:17:30,440 --> 00:17:32,480
Speaker 1: a moment like every other seller does. We're like, I'm

439
00:17:32,480 --> 00:17:36,520
Speaker 1: going to wait for the twelve. Yep, right, So I

440
00:17:36,560 --> 00:17:39,160
Speaker 1: get we find those sellers specifically, and now in twenty

441
00:17:39,200 --> 00:17:41,240
Speaker 1: twenty four to twenty twenty five, the technology is so

442
00:17:41,359 --> 00:17:43,840
Speaker 1: insane that I can just zero in on that exact

443
00:17:43,920 --> 00:17:45,680
Speaker 1: seller that's tried to sell the house. Maybe they're a

444
00:17:45,680 --> 00:17:47,320
Speaker 1: little bit overpriced.

445
00:17:47,119 --> 00:17:49,600
Speaker 2: And in that analogy of this building for example, So

446
00:17:50,280 --> 00:17:51,879
Speaker 2: it ended up going back to the bank, right right,

447
00:17:51,880 --> 00:17:54,000
Speaker 2: what you talked about that So if somebody would have said, hey,

448
00:17:54,000 --> 00:17:56,120
Speaker 2: I'll give you the twelve, but I'm going to take

449
00:17:56,119 --> 00:17:58,680
Speaker 2: over payments, I really have nothing to lose at that point, correct,

450
00:17:58,640 --> 00:18:01,240
Speaker 2: because I'm alady gonna lose building anyway. Right, So it's like, Okay,

451
00:18:01,280 --> 00:18:05,360
Speaker 2: sure I get the million, and worst case scenario, I'm

452
00:18:05,400 --> 00:18:05,960
Speaker 2: on the hook for the loan.

453
00:18:06,000 --> 00:18:07,280
Speaker 1: I have to give it back anyway. Yep. So you

454
00:18:07,280 --> 00:18:09,159
Speaker 1: are in a painful situation of like, hey, I have

455
00:18:09,240 --> 00:18:11,120
Speaker 1: a loan in place that's gonna go back to the bank.

456
00:18:11,119 --> 00:18:13,040
Speaker 1: The bank's going to foreclose on me. I go to

457
00:18:13,040 --> 00:18:14,800
Speaker 1: those sellers and just go, let me just save you

458
00:18:14,840 --> 00:18:17,879
Speaker 1: from foreclosure. So right now, for example, you look at

459
00:18:17,880 --> 00:18:20,480
Speaker 1: the nation, let's just look at Miracova County where I'm at.

460
00:18:20,640 --> 00:18:23,600
Speaker 1: We have an active about eighteen thousand people in foreclosure.

461
00:18:23,600 --> 00:18:27,000
Speaker 1: And just my county, Every county has foreclosures. There's not

462
00:18:27,040 --> 00:18:28,919
Speaker 1: a single county in the United States that does not

463
00:18:29,040 --> 00:18:31,479
Speaker 1: have an abundance of forks, even with real estate at

464
00:18:31,480 --> 00:18:33,439
Speaker 1: all time highs, even with real estate at an all

465
00:18:33,480 --> 00:18:36,800
Speaker 1: time high. Another really interesting statistic that I'll bring up

466
00:18:36,840 --> 00:18:38,399
Speaker 1: next of like where you can find a lot of

467
00:18:38,400 --> 00:18:42,040
Speaker 1: these deals expired listings. I'll touch on that in a second,

468
00:18:42,080 --> 00:18:46,359
Speaker 1: but expire foreclosures. So somebody who's in foreclosure, here's what

469
00:18:46,359 --> 00:18:48,280
Speaker 1: we typically do. We call them two weeks before they

470
00:18:48,280 --> 00:18:50,920
Speaker 1: get foreclosed on. They've already tried to get a loan modification,

471
00:18:50,960 --> 00:18:53,080
Speaker 1: they've already tried to list the property, they've already tried

472
00:18:53,080 --> 00:18:55,320
Speaker 1: to work with wholesalers or other people. They have two

473
00:18:55,320 --> 00:18:58,000
Speaker 1: weeks to the foreclosure. I call them up and we go, Hey,

474
00:18:58,160 --> 00:19:00,639
Speaker 1: you're gonna lose yourdit, your credit's gonna get distry, you're

475
00:19:00,680 --> 00:19:02,720
Speaker 1: gonna lose your home. How about you just let me

476
00:19:02,760 --> 00:19:04,520
Speaker 1: take over payments and I'll help you get into another

477
00:19:04,560 --> 00:19:06,000
Speaker 1: I'll help you get into a rental, I'll help you

478
00:19:06,000 --> 00:19:07,800
Speaker 1: get into an apartment. I'll help your family move or

479
00:19:07,800 --> 00:19:10,840
Speaker 1: whatever else. We'll even bring a moving truck whatever. Those

480
00:19:10,920 --> 00:19:14,800
Speaker 1: people are selling their house subject to do you think

481
00:19:14,880 --> 00:19:16,800
Speaker 1: a single question in their mind is like I care

482
00:19:16,840 --> 00:19:19,879
Speaker 1: about what happens to the house afterwards. No. No, And

483
00:19:19,920 --> 00:19:22,560
Speaker 1: so people go, well, what if, what if? And what if?

484
00:19:22,560 --> 00:19:24,800
Speaker 1: The seller says, what happens if you don't make my payments?

485
00:19:25,000 --> 00:19:28,000
Speaker 1: This seller that we have targeted, which there are thousands

486
00:19:28,000 --> 00:19:30,160
Speaker 1: and thousands and thousands of them to day right now,

487
00:19:30,160 --> 00:19:33,919
Speaker 1: you can go on foreclosures dot Com, hundreds of thousands

488
00:19:33,920 --> 00:19:36,600
Speaker 1: of foreclosures. These people are like, please take over my payments.

489
00:19:36,840 --> 00:19:39,360
Speaker 1: It's not a question of what happens if you don't

490
00:19:39,359 --> 00:19:41,439
Speaker 1: make the payment. They're just saying, Mark, will you please

491
00:19:41,560 --> 00:19:44,679
Speaker 1: take over my freaking payments. In the situation you were

492
00:19:44,680 --> 00:19:46,720
Speaker 1: in on this house, if I called you back then

493
00:19:46,760 --> 00:19:49,000
Speaker 1: and said, hey, Mark, I know this house is going

494
00:19:49,040 --> 00:19:50,880
Speaker 1: to go back to the bank tomorrow. If I caught

495
00:19:50,960 --> 00:19:53,520
Speaker 1: up your arrears, your late payments, and I put a

496
00:19:53,560 --> 00:19:54,960
Speaker 1: little bit of money in your pocket. Would you let

497
00:19:55,000 --> 00:19:56,399
Speaker 1: me take over the payments? You would have been like,

498
00:19:56,480 --> 00:19:57,199
Speaker 1: are you kidding me?

499
00:19:57,400 --> 00:20:00,879
Speaker 2: Yeah? Absolutely, because of the writ at the wrist, already.

500
00:20:00,480 --> 00:20:01,040
Speaker 1: Going to lose.

501
00:20:01,080 --> 00:20:02,760
Speaker 2: You were in pain, so like there was, there was,

502
00:20:03,040 --> 00:20:04,160
Speaker 2: I couldn't have gotten worse off.

503
00:20:04,320 --> 00:20:06,480
Speaker 1: There you go. And that's subject too. So when I'm

504
00:20:06,480 --> 00:20:09,359
Speaker 1: buying a house from somebody subject too, that's typically their pain.

505
00:20:09,760 --> 00:20:11,760
Speaker 1: I'm going to them and saying, I'm saving your credit,

506
00:20:12,240 --> 00:20:14,320
Speaker 1: I'm solving your your problem. I'm helping you stay in

507
00:20:14,320 --> 00:20:16,600
Speaker 1: the house. Maybe another thirty days, I will take over

508
00:20:16,640 --> 00:20:18,000
Speaker 1: the house. Now what am I doing with the house.

509
00:20:18,160 --> 00:20:20,200
Speaker 1: I'm just turning into a rental into a cash flowing

510
00:20:20,200 --> 00:20:22,840
Speaker 1: asset right now. On the sellar finance side, it's different.

511
00:20:22,920 --> 00:20:26,240
Speaker 1: Seller finance is always somebody's like, I'll give you a

512
00:20:26,280 --> 00:20:28,440
Speaker 1: good example. I just bought a ranch in Montana where

513
00:20:28,440 --> 00:20:30,679
Speaker 1: I spend my summers, and I gave the guy a

514
00:20:30,720 --> 00:20:34,040
Speaker 1: dollar down payment. Why why was a guy willing to

515
00:20:34,040 --> 00:20:37,240
Speaker 1: sell a twenty acre parcel, eight million dollar, eight thousand

516
00:20:37,280 --> 00:20:39,560
Speaker 1: square foot brand new build with a thirty five hundred

517
00:20:39,560 --> 00:20:42,000
Speaker 1: square foot brand new barn. Why was he willing to

518
00:20:42,000 --> 00:20:44,040
Speaker 1: sell that to me three point seven million dollars for

519
00:20:44,119 --> 00:20:46,800
Speaker 1: one dollar down. A couple of reasons. Why one he

520
00:20:46,840 --> 00:20:49,639
Speaker 1: wanted three point seven million because in his mind, he's like,

521
00:20:49,800 --> 00:20:52,840
Speaker 1: that's my locked in profit. I'm okay waiting for a

522
00:20:52,840 --> 00:20:54,600
Speaker 1: while because I'm just going to take that, pay a

523
00:20:54,600 --> 00:20:56,520
Speaker 1: bunch of capital gains tax on it, and then I

524
00:20:56,560 --> 00:20:58,240
Speaker 1: have to go find a new place for that investment

525
00:20:58,280 --> 00:21:01,399
Speaker 1: to go. So he's like, I'll i'll mitigate my capital

526
00:21:01,440 --> 00:21:04,480
Speaker 1: gains tax. Selling to pays and the larger the down

527
00:21:04,520 --> 00:21:08,040
Speaker 1: payment the seller receives, the more capital gains tax they pay.

528
00:21:08,760 --> 00:21:11,920
Speaker 1: So an intelligent seller selling to you on seller finance

529
00:21:11,960 --> 00:21:14,280
Speaker 1: does not want a down payment. My RV park that

530
00:21:14,320 --> 00:21:16,119
Speaker 1: I bought just right down the road from Glacier National

531
00:21:16,119 --> 00:21:18,840
Speaker 1: Park five million dollars. Eric, the seller's like, I want

532
00:21:20,000 --> 00:21:21,840
Speaker 1: it's a five million dollar purchase. He says, I want

533
00:21:21,840 --> 00:21:23,800
Speaker 1: five hundred thousand dollars down. I go, Eric, you don't

534
00:21:23,840 --> 00:21:27,280
Speaker 1: want any money down, because what do you mean? I go,

535
00:21:27,400 --> 00:21:29,439
Speaker 1: let's get your CPA in the call. How much are

536
00:21:29,480 --> 00:21:31,120
Speaker 1: you going to pay at at five hundred thousand dollars?

537
00:21:31,160 --> 00:21:32,840
Speaker 1: When I give you this five hundred thousand dollars, you're

538
00:21:32,840 --> 00:21:35,160
Speaker 1: gonna pay two hundred thousand dollars in capital gains tax

539
00:21:35,160 --> 00:21:37,440
Speaker 1: on that down payment. You want as little amount of

540
00:21:37,480 --> 00:21:40,120
Speaker 1: money as humanly possible upfront. That makes you feel safe.

541
00:21:40,240 --> 00:21:42,720
Speaker 1: And so as all right gets the CPN of involved

542
00:21:42,720 --> 00:21:46,000
Speaker 1: in the CPA goes, Yeah, like Pace's argument is very valid,

543
00:21:46,000 --> 00:21:48,159
Speaker 1: but you should have some security. So we went, we

544
00:21:48,200 --> 00:21:50,120
Speaker 1: settled for two hundred thousand dollars down on a five

545
00:21:50,119 --> 00:21:52,280
Speaker 1: million dollar purchase. What is that? Four person?

546
00:21:52,400 --> 00:21:54,320
Speaker 2: How does that work on the cap gain? So on

547
00:21:54,359 --> 00:21:56,800
Speaker 2: a five million dollar purchase, he was in at two million,

548
00:21:56,880 --> 00:21:59,560
Speaker 2: so there's going to be a three million cap cap gains, right,

549
00:21:59,640 --> 00:22:02,120
Speaker 2: So but if you bought it for a dollar down

550
00:22:02,160 --> 00:22:04,840
Speaker 2: or two hundred thousand down, does that adjust the purchase

551
00:22:04,880 --> 00:22:05,760
Speaker 2: price that you're buying No?

552
00:22:05,840 --> 00:22:07,679
Speaker 1: What else, what it does is it allows him to

553
00:22:07,840 --> 00:22:10,120
Speaker 1: It allows him to stretch out his gain. You only

554
00:22:10,119 --> 00:22:12,760
Speaker 1: get tax on money you receive, right, So if he

555
00:22:12,960 --> 00:22:15,159
Speaker 1: spreads out his gain over ten years, and he's receiving

556
00:22:15,200 --> 00:22:17,440
Speaker 1: that money over the next ten years, he can now

557
00:22:17,480 --> 00:22:20,119
Speaker 1: have other offsets and other write offs against that gain.

558
00:22:20,520 --> 00:22:22,800
Speaker 1: Whereas like, right now, let's say that he's his cost

559
00:22:22,800 --> 00:22:24,439
Speaker 1: bases is two million, he sells it to me for

560
00:22:24,480 --> 00:22:27,360
Speaker 1: five he's got a three million dollar gain, He's got

561
00:22:27,400 --> 00:22:28,959
Speaker 1: agents and all these other people he's got to pay.

562
00:22:29,000 --> 00:22:31,440
Speaker 1: It's such a freaking expensive way to, you know, sell property.

563
00:22:31,560 --> 00:22:33,560
Speaker 1: He's got that, let's say two point five million dollars

564
00:22:33,640 --> 00:22:35,720
Speaker 1: left over, he's going to pay forty percent of that.

565
00:22:35,800 --> 00:22:38,240
Speaker 1: What is that? Basically a million? He's going to walk

566
00:22:38,240 --> 00:22:42,000
Speaker 1: away with one point five million dollars on his gain today. Yeah,

567
00:22:42,080 --> 00:22:44,159
Speaker 1: Whereas if he just goes, I'll wait ten years for

568
00:22:44,200 --> 00:22:46,880
Speaker 1: that and I'll let Pace make me payments. Those that

569
00:22:46,920 --> 00:22:49,360
Speaker 1: game gets paid incrementally over those ten years.

570
00:22:49,400 --> 00:22:50,720
Speaker 2: How do they even calculate that?

571
00:22:50,840 --> 00:22:53,200
Speaker 1: A CPA does it? Yeah, because you're.

572
00:22:53,040 --> 00:22:55,320
Speaker 2: Paying you're supposed to can pay in cap gains tax

573
00:22:55,320 --> 00:22:57,280
Speaker 2: every year. Yeah, So what he does is he in

574
00:22:57,320 --> 00:22:59,399
Speaker 2: one hundred thousand on a five million dollar purchase? Like,

575
00:22:59,480 --> 00:23:00,520
Speaker 2: where does that he come into play?

576
00:23:00,600 --> 00:23:02,480
Speaker 1: So what ends up happening? So for example, Eric, the

577
00:23:02,640 --> 00:23:05,040
Speaker 1: seller that sold the RV park to me and Glacier,

578
00:23:05,520 --> 00:23:07,600
Speaker 1: he says, if I make payments, if you make payments

579
00:23:07,600 --> 00:23:09,720
Speaker 1: to me in year one, which twenty twenty four, this

580
00:23:09,760 --> 00:23:12,320
Speaker 1: is the first year that I'll I'm making payments to him,

581
00:23:12,880 --> 00:23:14,720
Speaker 1: I will take the cap gains that I have and

582
00:23:14,760 --> 00:23:16,840
Speaker 1: I will find other write offs and other things that

583
00:23:16,880 --> 00:23:19,240
Speaker 1: will go against that cap gain. So essentially I'll figure

584
00:23:19,240 --> 00:23:21,280
Speaker 1: out how to wipe out my cap gain. So you

585
00:23:21,320 --> 00:23:23,400
Speaker 1: can't do that in one year if you just give

586
00:23:23,440 --> 00:23:25,240
Speaker 1: him three million dollars in one year, But if you

587
00:23:25,600 --> 00:23:27,479
Speaker 1: spread it out over ten years, he can find three

588
00:23:27,560 --> 00:23:29,879
Speaker 1: hundred thousand dollars in write offs on a yearly basis

589
00:23:29,920 --> 00:23:30,720
Speaker 1: for the next ten years.

590
00:23:30,800 --> 00:23:31,119
Speaker 2: Yeah.

591
00:23:31,200 --> 00:23:33,440
Speaker 1: So essentially it gives him one point one point five

592
00:23:33,440 --> 00:23:34,840
Speaker 1: million dollars extra in his pocket.

593
00:23:34,960 --> 00:23:37,920
Speaker 2: But is that because you've you've sort of filed what

594
00:23:37,960 --> 00:23:40,240
Speaker 2: the sales price is, but you're only paying tax on

595
00:23:40,280 --> 00:23:42,560
Speaker 2: what you've received. They know, but they know the gains

596
00:23:42,600 --> 00:23:45,240
Speaker 2: that's coming because you've kind of divaried what that price. Yep.

597
00:23:45,280 --> 00:23:47,240
Speaker 1: So he has a whole map written by my CPA.

598
00:23:47,400 --> 00:23:49,480
Speaker 1: The map will write out exactly what he needs to

599
00:23:49,480 --> 00:23:50,880
Speaker 1: go out and find in write offs so he doesn't

600
00:23:50,920 --> 00:23:52,119
Speaker 1: have to pay any of the dance.

601
00:23:52,200 --> 00:23:55,800
Speaker 2: Yeah, got it. Okay, So you love single family homes,

602
00:23:55,800 --> 00:23:57,000
Speaker 2: you've done it with multifamily.

603
00:23:57,080 --> 00:23:59,159
Speaker 1: I started in single family and that was the that

604
00:23:59,240 --> 00:24:01,200
Speaker 1: was the tough thing for me. Like you start where

605
00:24:01,240 --> 00:24:04,800
Speaker 1: you started is based on who showed you the paths, right,

606
00:24:05,080 --> 00:24:07,280
Speaker 1: So like your buddy and like them shining the light

607
00:24:07,280 --> 00:24:09,399
Speaker 1: on the path that you followed, same thing with me.

608
00:24:09,520 --> 00:24:12,680
Speaker 1: So I started in single family. I got to two

609
00:24:12,800 --> 00:24:15,560
Speaker 1: hundred rentals probably in about a four year timeframe, all

610
00:24:15,680 --> 00:24:18,360
Speaker 1: no money down, most mostly no money down, no credit check,

611
00:24:18,400 --> 00:24:20,880
Speaker 1: none of that kind of stuff. And then I was like, dude,

612
00:24:20,920 --> 00:24:23,399
Speaker 1: I should be doing twenty unit and fifty unit and

613
00:24:23,440 --> 00:24:26,240
Speaker 1: one hundred and fifty unit so large. So I started

614
00:24:26,400 --> 00:24:29,240
Speaker 1: the last five years, I've really done a lot more multifamily.

615
00:24:29,600 --> 00:24:32,560
Speaker 1: I'd say seventy five percent of my portfolio is multi family,

616
00:24:32,600 --> 00:24:34,800
Speaker 1: twenty five percent of its single family. But most people

617
00:24:34,800 --> 00:24:36,480
Speaker 1: think of me as a single family guy because that's

618
00:24:36,520 --> 00:24:39,320
Speaker 1: my branding online, because it makes sense for my audience

619
00:24:39,359 --> 00:24:42,120
Speaker 1: to watch me talk about single family. It's easier to comprehend,

620
00:24:42,160 --> 00:24:44,840
Speaker 1: Like we're not talking about IRR and we're not talking

621
00:24:44,840 --> 00:24:48,120
Speaker 1: about you know, crazy stuff. People that are just starting out.

622
00:24:48,160 --> 00:24:49,760
Speaker 1: Single family is the best place to go for them

623
00:24:49,800 --> 00:24:50,960
Speaker 1: to get started to make money today.

624
00:24:51,000 --> 00:24:53,160
Speaker 2: For a bunch of reasons. Yeah, we call it the

625
00:24:53,480 --> 00:24:55,600
Speaker 2: in investing space, the bread and butter. Yeah, it's the

626
00:24:55,600 --> 00:24:58,359
Speaker 2: bread and butter, the three two's, and for a lot

627
00:24:58,400 --> 00:25:00,840
Speaker 2: of reasons. We talked about one, a building that you

628
00:25:00,960 --> 00:25:02,800
Speaker 2: bought that you found out needed a lot of work,

629
00:25:02,840 --> 00:25:04,440
Speaker 2: a lot of plumbing. So, for example, you buy a

630
00:25:04,480 --> 00:25:06,440
Speaker 2: bigger building, there's a lot of bigger risks that you

631
00:25:06,480 --> 00:25:07,160
Speaker 2: could fall into.

632
00:25:07,280 --> 00:25:10,080
Speaker 1: Yeah, that property, Mo, the seller. I actually interviewed him

633
00:25:10,119 --> 00:25:12,159
Speaker 1: on a YouTube channel, the seller of that. So I

634
00:25:12,200 --> 00:25:15,360
Speaker 1: bought a thirty unit deal in Corpus Christy, no money down,

635
00:25:15,520 --> 00:25:18,320
Speaker 1: no interest, and he gave me fifty year note. So

636
00:25:18,359 --> 00:25:20,840
Speaker 1: he gives me fifty years to pay him. Why would

637
00:25:20,840 --> 00:25:24,040
Speaker 1: Moe do that? Right? Well, again, seller finance. This was

638
00:25:24,080 --> 00:25:26,080
Speaker 1: not me taking over debt. This was the seller owned

639
00:25:26,080 --> 00:25:30,280
Speaker 1: the property outright. He was a grocery store owner and

640
00:25:30,320 --> 00:25:32,199
Speaker 1: his CPA a long time ago was like, you need

641
00:25:32,240 --> 00:25:34,600
Speaker 1: to buy real estate to save your butt on taxes.

642
00:25:35,000 --> 00:25:36,760
Speaker 1: But he never learned how to manage real estate, so

643
00:25:36,800 --> 00:25:39,639
Speaker 1: he mismanages his property for basically twenty years. I come along,

644
00:25:39,680 --> 00:25:42,720
Speaker 1: I go, Mo, let me help you retire from multifamily,

645
00:25:42,960 --> 00:25:44,600
Speaker 1: and I'll give you a payment plan that you can

646
00:25:44,680 --> 00:25:49,000
Speaker 1: receive all this money long term. Moe goes, this is amazing.

647
00:25:49,000 --> 00:25:50,560
Speaker 1: I can save money on taxes. I don't have to

648
00:25:50,560 --> 00:25:52,679
Speaker 1: pay a real estate agent This is awesome. You'll make

649
00:25:52,760 --> 00:25:54,840
Speaker 1: monthly payments to me, and even after I'm dead, those

650
00:25:54,880 --> 00:25:56,959
Speaker 1: monthly payments will go to my family, which is ultimately

651
00:25:57,000 --> 00:25:58,800
Speaker 1: what I bought the multi family for in the first place,

652
00:25:59,200 --> 00:26:00,960
Speaker 1: and I can get a higher purchase price all the

653
00:26:01,000 --> 00:26:04,000
Speaker 1: things that he loved. What happened with that property is

654
00:26:04,160 --> 00:26:06,600
Speaker 1: Moe never took care of the property, and so even

655
00:26:06,640 --> 00:26:08,480
Speaker 1: though I went in to start renovating it and getting,

656
00:26:08,560 --> 00:26:10,680
Speaker 1: you know, raising rents, we found that the plumbing had

657
00:26:10,720 --> 00:26:13,000
Speaker 1: never been touched in thirty years, and so I had

658
00:26:13,000 --> 00:26:14,560
Speaker 1: to go in and spend a bunch of money and

659
00:26:14,600 --> 00:26:16,760
Speaker 1: bring in a partner to bring money to the table.

660
00:26:16,880 --> 00:26:20,480
Speaker 1: Multifamily can absolutely kick you right in the teeth because

661
00:26:20,480 --> 00:26:22,399
Speaker 1: it's much larger problems. Yeah, for sure.

662
00:26:22,640 --> 00:26:25,720
Speaker 2: I moved here from Corpus CHRISTI, oh you did. Yeah,

663
00:26:25,760 --> 00:26:27,520
Speaker 2: my dad was in the Air Force, so we lived

664
00:26:27,560 --> 00:26:27,840
Speaker 2: down there.

665
00:26:27,880 --> 00:26:29,840
Speaker 1: But it's a great spot. I don't know if like

666
00:26:29,840 --> 00:26:32,000
Speaker 1: sleepy town now, Yeah, seems pretty sleepy.

667
00:26:32,119 --> 00:26:35,200
Speaker 2: Yeah. It reminds me of the Zigziglar quote I think

668
00:26:35,240 --> 00:26:37,000
Speaker 2: he said it, which is you help other people get

669
00:26:37,000 --> 00:26:38,840
Speaker 2: what they want, and you get what you want.

670
00:26:38,960 --> 00:26:40,720
Speaker 1: I've never done a deal. This is the I think

671
00:26:40,760 --> 00:26:44,879
Speaker 1: the most misunderstood thing. People will watch me online and

672
00:26:44,920 --> 00:26:47,160
Speaker 1: they'll go, oh, you're taking over people's payments. You're taking

673
00:26:47,160 --> 00:26:49,960
Speaker 1: advantage of people. I'm like, listen to every interview I've

674
00:26:49,960 --> 00:26:51,639
Speaker 1: ever done with my seller, and they will tell you

675
00:26:51,680 --> 00:26:55,320
Speaker 1: Pace saved my life. Like I understand how to solve

676
00:26:55,400 --> 00:26:59,040
Speaker 1: some of these problems utilizing these methods. I've never once

677
00:26:59,240 --> 00:27:01,440
Speaker 1: had a seller. I get sellers that text me Happy

678
00:27:01,480 --> 00:27:04,160
Speaker 1: Birthday five years after I bought their house. They yeah,

679
00:27:04,160 --> 00:27:06,120
Speaker 1: because they want you to keep paying them. Well, yeah,

680
00:27:06,160 --> 00:27:08,760
Speaker 1: either if they if they sold to me on seller Finance,

681
00:27:08,800 --> 00:27:11,160
Speaker 1: they are my bank, and so they obviously want that relationship.

682
00:27:11,160 --> 00:27:12,800
Speaker 1: But what about the sellers that are like, here's the

683
00:27:12,880 --> 00:27:15,119
Speaker 1: keys to my house, take over my payments with Wells Fargo.

684
00:27:15,840 --> 00:27:18,080
Speaker 1: Those people still text me years later and they have

685
00:27:18,160 --> 00:27:19,760
Speaker 1: nothing to gain from that other than we just have

686
00:27:19,800 --> 00:27:24,719
Speaker 1: a good relationship. Right, So what's crazy is that people

687
00:27:24,840 --> 00:27:27,040
Speaker 1: listening to this, you are one day away from making

688
00:27:27,080 --> 00:27:28,800
Speaker 1: money with this kind of stuff. And I'll tell you

689
00:27:28,880 --> 00:27:30,040
Speaker 1: here's what I would do if I had to start

690
00:27:30,080 --> 00:27:33,520
Speaker 1: all over, I would go to expired listings. People don't

691
00:27:33,560 --> 00:27:36,840
Speaker 1: realize how big this is. Every day across the country,

692
00:27:36,880 --> 00:27:40,800
Speaker 1: fifteen thousand real estate agents get fired. Fifteen thousand real

693
00:27:40,880 --> 00:27:44,639
Speaker 1: estate agents. So with this whole inventory, it's bullshit. People like, oh,

694
00:27:44,640 --> 00:27:47,000
Speaker 1: there's an inventory problem. Oh, there is an inventory problem.

695
00:27:47,040 --> 00:27:49,480
Speaker 1: If there's an inventory problem, then why did fifteen thousand

696
00:27:49,560 --> 00:27:52,760
Speaker 1: agents over the last six months. This is how it culminates.

697
00:27:53,640 --> 00:27:56,760
Speaker 1: These fifteen thousand agents get hired six months ago. For

698
00:27:56,880 --> 00:27:59,200
Speaker 1: six months, they fail to sell the house. Oh, we

699
00:27:59,280 --> 00:28:02,280
Speaker 1: have a big inventory problem, don't we. On the six

700
00:28:02,359 --> 00:28:04,680
Speaker 1: month what happens to an agent is they lose their

701
00:28:04,760 --> 00:28:06,960
Speaker 1: job with the seller and they get fired. It becomes

702
00:28:07,040 --> 00:28:09,560
Speaker 1: what we call an expired listing, a canceled listing, or

703
00:28:09,600 --> 00:28:12,720
Speaker 1: what I call a failed agent listing. Fifteen thousand of

704
00:28:12,720 --> 00:28:16,360
Speaker 1: these pop up every day, Monday through Friday, every single day.

705
00:28:16,400 --> 00:28:18,720
Speaker 1: So what are you looking at. You're looking at seventy

706
00:28:18,800 --> 00:28:24,480
Speaker 1: five thousand listings a week. Agents get fired seventy five

707
00:28:24,560 --> 00:28:27,440
Speaker 1: thousand listings a week. So when you look at that,

708
00:28:27,520 --> 00:28:30,520
Speaker 1: these sellers have already gone on market for six months.

709
00:28:31,280 --> 00:28:34,320
Speaker 1: They're on market for six months. Who's told them their

710
00:28:34,320 --> 00:28:36,560
Speaker 1: house is not worth what they thought it was worth?

711
00:28:36,960 --> 00:28:39,520
Speaker 1: Somebody else for six months? Yeah, the market told, market

712
00:28:39,520 --> 00:28:42,040
Speaker 1: told them, everybody told them the market's not worth the

713
00:28:42,080 --> 00:28:44,520
Speaker 1: house is not worth the four plex is not worth it, whatever,

714
00:28:44,960 --> 00:28:47,000
Speaker 1: And so I will call the day after the agent

715
00:28:47,000 --> 00:28:48,600
Speaker 1: gets fired and go, hey, my name is Pace Morby.

716
00:28:48,640 --> 00:28:50,600
Speaker 1: I obviously don't do the calls anymore. My team does.

717
00:28:51,640 --> 00:28:53,320
Speaker 1: My name is Pace Morby. I'm sure you stick a

718
00:28:53,320 --> 00:28:56,000
Speaker 1: dealing with real estate agents. Don't blame you. I'm a buyer.

719
00:28:56,080 --> 00:28:57,480
Speaker 1: I'd like to sit down with you today and figure

720
00:28:57,520 --> 00:28:58,880
Speaker 1: out how to buy your house. Are you open to

721
00:28:58,960 --> 00:29:02,480
Speaker 1: letting me make takeover existing payments or are you open

722
00:29:02,520 --> 00:29:04,520
Speaker 1: to letting me make payments to you and you becoming

723
00:29:04,520 --> 00:29:06,520
Speaker 1: the bank. The line I use with the seller all

724
00:29:06,520 --> 00:29:08,040
Speaker 1: the time is I'd like to upgrade you from the

725
00:29:08,120 --> 00:29:11,280
Speaker 1: landlord to the lender. And you know this because you've

726
00:29:11,320 --> 00:29:13,680
Speaker 1: been a lender. The greatest job in all of real

727
00:29:13,760 --> 00:29:16,480
Speaker 1: estate is becoming the lender. And so I convinced the seller,

728
00:29:16,520 --> 00:29:18,040
Speaker 1: I go, you don't want to be the landlord now?

729
00:29:18,200 --> 00:29:20,160
Speaker 2: If that's if they have equity and they're going to finance, right,

730
00:29:20,320 --> 00:29:21,800
Speaker 2: So you got to figure that out before.

731
00:29:21,960 --> 00:29:24,120
Speaker 1: Yeah, And you asked that one or two questions and

732
00:29:24,160 --> 00:29:26,400
Speaker 1: you're done. And so you could do a variety of

733
00:29:26,400 --> 00:29:28,120
Speaker 1: things with this house. Let's say I'll give you a

734
00:29:28,160 --> 00:29:31,360
Speaker 1: good example. So I told you before we started the show,

735
00:29:31,360 --> 00:29:34,000
Speaker 1: I have a student named Andrew McGuire. He was a

736
00:29:34,000 --> 00:29:35,880
Speaker 1: real estate agent for a number of years. The real

737
00:29:35,960 --> 00:29:38,120
Speaker 1: estate pipeline dries up. As we all know, twenty twenty

738
00:29:38,200 --> 00:29:41,800
Speaker 1: three rates are high. Interest rates are just forcing buyers

739
00:29:41,840 --> 00:29:44,959
Speaker 1: not to buy conventionally. So Andrew's entire pipeline as an

740
00:29:44,960 --> 00:29:47,840
Speaker 1: agent dries up. So in October, he's like, looking for

741
00:29:47,880 --> 00:29:50,400
Speaker 1: a job, sees a YouTube video of mine talking about

742
00:29:50,400 --> 00:29:54,520
Speaker 1: expired listings, and I thought he was going to pull

743
00:29:54,560 --> 00:29:56,720
Speaker 1: up Andrew McGuire video. I'm like, hell, yeah, it'd be great.

744
00:29:56,920 --> 00:30:01,280
Speaker 1: So Andrew maguire jumps into my he learns how to

745
00:30:01,320 --> 00:30:03,760
Speaker 1: call expired listening. He's like, Oh, I could just call

746
00:30:03,840 --> 00:30:06,840
Speaker 1: these people, get them under contract subject to our seller finance,

747
00:30:07,280 --> 00:30:09,960
Speaker 1: and I don't have to be the buyer. I could

748
00:30:10,000 --> 00:30:12,880
Speaker 1: just get them under contract and sell it to a

749
00:30:12,880 --> 00:30:15,000
Speaker 1: buyer and make a fee. What the heck?

750
00:30:15,040 --> 00:30:15,120
Speaker 2: Like?

751
00:30:15,160 --> 00:30:16,800
Speaker 1: As an agent, you don't learn that you can make

752
00:30:16,840 --> 00:30:19,400
Speaker 1: assignment fees. So his first deal he does is a

753
00:30:19,400 --> 00:30:22,000
Speaker 1: four plex. I end up buying the deal. He makes

754
00:30:22,000 --> 00:30:24,480
Speaker 1: twenty one thousand dollars. It was. It was literally one

755
00:30:24,480 --> 00:30:26,960
Speaker 1: call close. He says, hey, would you be willing to

756
00:30:26,960 --> 00:30:30,000
Speaker 1: sell her finance the four plex? And the seller says yeah.

757
00:30:30,000 --> 00:30:32,520
Speaker 1: I was wondering why the agent never even pitched any

758
00:30:32,520 --> 00:30:35,400
Speaker 1: of this stuff to me. Most sellers in four plexes

759
00:30:35,440 --> 00:30:37,960
Speaker 1: or higher multi family, they actually understand seller finance. I'm

760
00:30:37,960 --> 00:30:39,440
Speaker 1: sure you've done deals with a lot of people that

761
00:30:39,560 --> 00:30:42,120
Speaker 1: understand seller finance that they actually will pitch or bring

762
00:30:42,160 --> 00:30:45,080
Speaker 1: the ideas to you. And so Andrew made twenty one grand,

763
00:30:45,120 --> 00:30:46,560
Speaker 1: and like, I think it was a matter of like

764
00:30:46,560 --> 00:30:49,280
Speaker 1: maybe three days doing the deal with me. That's how

765
00:30:49,360 --> 00:30:52,440
Speaker 1: fast this business can go, even in a compressed, really

766
00:30:52,520 --> 00:30:56,360
Speaker 1: challenging market. Go after the expired listings where agents are failing.

767
00:30:56,560 --> 00:30:59,160
Speaker 1: Why are they failing? They're failing all the time, no

768
00:30:59,200 --> 00:31:01,400
Speaker 1: matter what market up, down, left or right, there's always

769
00:31:01,400 --> 00:31:05,480
Speaker 1: expired listings. But right now they're extraordinarily high because agents

770
00:31:05,480 --> 00:31:08,080
Speaker 1: are trying to sell houses to buyers who are who

771
00:31:08,280 --> 00:31:10,960
Speaker 1: have to go get seven percent interest rates? Right? Why

772
00:31:10,960 --> 00:31:13,719
Speaker 1: are we not? Why are we doing that? Why am

773
00:31:13,800 --> 00:31:15,440
Speaker 1: I asking a buyer to go to get a seven

774
00:31:15,440 --> 00:31:17,840
Speaker 1: percent rate to pay off my three percent rate? Why

775
00:31:17,920 --> 00:31:19,360
Speaker 1: not just have the buyer come in and take over

776
00:31:19,400 --> 00:31:21,600
Speaker 1: the rate three percent. The only the only people that

777
00:31:21,600 --> 00:31:23,840
Speaker 1: are making money in these transactions are the freaking banks. Yeah,

778
00:31:24,200 --> 00:31:25,960
Speaker 1: so that's what we're doing. We're just going directly to

779
00:31:25,960 --> 00:31:28,400
Speaker 1: the seller. I for the most part, I bypass realistic

780
00:31:28,440 --> 00:31:32,240
Speaker 1: agents as well. I love it. I remember.

781
00:31:33,920 --> 00:31:36,320
Speaker 2: When was it it was. I think I was probably

782
00:31:36,480 --> 00:31:40,120
Speaker 2: back in my big run, so probably uh, late nineties,

783
00:31:40,200 --> 00:31:42,440
Speaker 2: early two thousands. A lot of people were doing like

784
00:31:42,520 --> 00:31:45,880
Speaker 2: wrapped loans, so they're taking over loan but then reselling it.

785
00:31:46,040 --> 00:31:46,200
Speaker 1: Yep.

786
00:31:46,280 --> 00:31:48,320
Speaker 2: But then that was pretty illegal. I think right that, no,

787
00:31:48,400 --> 00:31:50,320
Speaker 2: wraps are not illegal, or someone frowned upon.

788
00:31:51,240 --> 00:31:53,640
Speaker 1: Where it's where it's frowned upon on wraps is that

789
00:31:53,720 --> 00:31:56,719
Speaker 1: you have a non qualified buyer doing the deal. So

790
00:31:56,920 --> 00:31:59,160
Speaker 1: what's cool. I do wraps as well, and they're legal

791
00:31:59,160 --> 00:32:01,840
Speaker 1: in all fifty states. What you're essentially doing. What I

792
00:32:01,880 --> 00:32:03,640
Speaker 1: don't love about a rap is that I'm taking over

793
00:32:03,680 --> 00:32:06,080
Speaker 1: somebody else's payments on their house, let's say, and then

794
00:32:06,240 --> 00:32:09,360
Speaker 1: I don't tell them now because I'm the owner, I

795
00:32:09,400 --> 00:32:11,840
Speaker 1: had the deed, I control the deed. The deed comes

796
00:32:11,840 --> 00:32:14,840
Speaker 1: in my name in a subtwo transaction, I'm now going

797
00:32:14,880 --> 00:32:17,520
Speaker 1: and finding let's say i call a mattress buyers. People

798
00:32:17,560 --> 00:32:19,520
Speaker 1: have cash in their mattress, but they'll never qualify for

799
00:32:19,560 --> 00:32:22,640
Speaker 1: a bank loan. I then resell the house to them.

800
00:32:22,960 --> 00:32:24,520
Speaker 1: But I let's say I bought it from them at

801
00:32:24,520 --> 00:32:27,160
Speaker 1: three hundred thousand, took over their loan at three hundred thousand,

802
00:32:27,360 --> 00:32:29,280
Speaker 1: and I sell it to this guy at four hundred thousand.

803
00:32:29,280 --> 00:32:32,440
Speaker 1: I build one hundred thousand dollars in equity, and I

804
00:32:32,640 --> 00:32:35,920
Speaker 1: arbitrage the three percent rate. I'm charging this person seven percent.

805
00:32:36,000 --> 00:32:39,200
Speaker 1: That's a wrap and wrapping the existing loan with my

806
00:32:39,320 --> 00:32:42,600
Speaker 1: loan and wrapping them together. What a lot of ten

807
00:32:42,680 --> 00:32:45,880
Speaker 1: people are doing is they're bringing in non qualified buyers

808
00:32:45,920 --> 00:32:48,719
Speaker 1: to buy that house, and they're trying to wash their

809
00:32:48,720 --> 00:32:50,320
Speaker 1: hands of the transaction. It's not the right way to

810
00:32:50,360 --> 00:32:52,600
Speaker 1: do it. You got to qualify. You got to qualify

811
00:32:52,600 --> 00:32:55,320
Speaker 1: that buyer. That's where people get it gets frowned upon.

812
00:32:56,400 --> 00:32:58,320
Speaker 2: How are you getting qualified when you buy it? Though?

813
00:32:58,800 --> 00:33:01,600
Speaker 1: I'm not right. The thing what we're talking about is

814
00:33:01,600 --> 00:33:04,320
Speaker 1: I'm taking somebody else's loan that they trusted me with,

815
00:33:04,400 --> 00:33:06,440
Speaker 1: and I have an agreement with them, and I'm then

816
00:33:06,520 --> 00:33:09,720
Speaker 1: reselling it to somebody that that person's never met that's

817
00:33:09,760 --> 00:33:10,800
Speaker 1: where the disconnect is.

818
00:33:10,880 --> 00:33:13,560
Speaker 2: So you being an honest, good actor, you're acting in

819
00:33:13,600 --> 00:33:15,880
Speaker 2: good faith and you know what you're capable of, and

820
00:33:15,920 --> 00:33:17,440
Speaker 2: so you feel good about taking it because you know

821
00:33:17,520 --> 00:33:18,640
Speaker 2: you can do it. But if you give it to

822
00:33:18,680 --> 00:33:20,800
Speaker 2: somebody else that you don't feel good, you don't have

823
00:33:20,840 --> 00:33:22,240
Speaker 2: good faith about, then you're.

824
00:33:22,320 --> 00:33:24,040
Speaker 1: And you're trying to like you'll take a down payment.

825
00:33:24,040 --> 00:33:26,560
Speaker 1: They'll take down payments on these buyers, right, thirty forty

826
00:33:26,560 --> 00:33:28,960
Speaker 1: thousand dollars down payments from these buyers pocket the money.

827
00:33:29,600 --> 00:33:31,520
Speaker 1: Whether these people have the ability to pay that payment

828
00:33:31,640 --> 00:33:33,480
Speaker 1: or not, that's not their concern. They want that thirty

829
00:33:33,480 --> 00:33:35,560
Speaker 1: forty thousand dollars and they're crossing their fingers hoping that

830
00:33:35,600 --> 00:33:38,640
Speaker 1: these people make the payment. Meanwhile, the person that sold

831
00:33:38,640 --> 00:33:41,160
Speaker 1: the house to you via subject to trusted you to

832
00:33:41,200 --> 00:33:44,360
Speaker 1: make the payments you you and your company. They verified you,

833
00:33:44,440 --> 00:33:47,560
Speaker 1: they checked you out, they built that relationship, that rapport

834
00:33:47,600 --> 00:33:50,600
Speaker 1: with you, and then you go behind them and resell

835
00:33:50,640 --> 00:33:53,120
Speaker 1: the loan to somebody else. It's perfectly legal, it just

836
00:33:53,240 --> 00:33:55,000
Speaker 1: you you shouldn't do it that, but it's unethical.

837
00:33:55,080 --> 00:33:58,720
Speaker 2: Yeah, I suppose if you were going to do that

838
00:33:58,840 --> 00:33:59,960
Speaker 2: and you give it to one of those types of

839
00:34:00,120 --> 00:34:03,800
Speaker 2: buyers who can't qualify the mattress cash buyers, as you say,

840
00:34:04,240 --> 00:34:06,400
Speaker 2: and then they default, Well, you can take the property

841
00:34:06,400 --> 00:34:07,320
Speaker 2: back and just give it to somebody else.

842
00:34:07,440 --> 00:34:09,439
Speaker 1: Yeah, we call it the after party. The after party.

843
00:34:09,440 --> 00:34:11,839
Speaker 1: I actually I have a whole terms for all these yeah,

844
00:34:11,840 --> 00:34:13,359
Speaker 1: because I mean we do them a lot, right, So,

845
00:34:13,400 --> 00:34:15,520
Speaker 1: like the party is, I just bought somebody's house, subject too.

846
00:34:15,520 --> 00:34:18,160
Speaker 1: I took over a three percent rate, no credit check,

847
00:34:18,280 --> 00:34:21,160
Speaker 1: no I helped to seller. Amazing as party time. Baby,

848
00:34:21,200 --> 00:34:23,520
Speaker 1: here we go, we're making money. I then can go

849
00:34:23,600 --> 00:34:25,560
Speaker 1: resell that for one hundred grand higher than I bought

850
00:34:25,560 --> 00:34:28,919
Speaker 1: it for to a buyer who's a mattress buyer, and

851
00:34:29,239 --> 00:34:31,520
Speaker 1: I qualify their ability. Let's say it's a landscape. I go,

852
00:34:31,520 --> 00:34:33,760
Speaker 1: all right, show me your last three months of income.

853
00:34:33,800 --> 00:34:35,839
Speaker 1: I want to make sure that you can, you know,

854
00:34:36,040 --> 00:34:38,160
Speaker 1: make these payments. I really don't care about their credit.

855
00:34:38,200 --> 00:34:40,400
Speaker 1: I care about their ability to pay. And if that

856
00:34:40,440 --> 00:34:42,799
Speaker 1: person defaults in my agreement with them, I take the

857
00:34:42,800 --> 00:34:45,359
Speaker 1: house back and I kept the down payment, I kept

858
00:34:45,360 --> 00:34:47,080
Speaker 1: the payments they made to me along the way, and

859
00:34:47,120 --> 00:34:49,040
Speaker 1: I can then just go back out and re find

860
00:34:49,080 --> 00:34:51,759
Speaker 1: another mattress buyer. It's pretty rare the way that we buy,

861
00:34:51,880 --> 00:34:55,759
Speaker 1: we find our buyers. It's pretty rare for them to default,

862
00:34:56,000 --> 00:34:58,120
Speaker 1: but we have it. It probably happens once a year

863
00:34:58,200 --> 00:35:01,040
Speaker 1: to all my rat buyers. But I'd say, hey, I'm

864
00:35:01,120 --> 00:35:03,160
Speaker 1: less than ten percent of the time I'm wrapping a house.

865
00:35:05,320 --> 00:35:06,960
Speaker 2: I have so many questions. I want to get into

866
00:35:07,000 --> 00:35:08,600
Speaker 2: some of the risks. But before we do that, because

867
00:35:08,600 --> 00:35:11,160
Speaker 2: I'm gonna turn optimst because I'm an entrepreneur, let's talk

868
00:35:11,160 --> 00:35:13,279
Speaker 2: about how we get into this. As I already told

869
00:35:13,320 --> 00:35:15,360
Speaker 2: you outside before we started recording, I was talking to

870
00:35:15,360 --> 00:35:17,440
Speaker 2: my good friend Jason Hartman about like maybe we should

871
00:35:17,440 --> 00:35:19,640
Speaker 2: partner up and like, let's dive into this thing. I've

872
00:35:19,640 --> 00:35:21,440
Speaker 2: told you, I got a couple extra desks here in

873
00:35:21,440 --> 00:35:22,560
Speaker 2: me by and get some of the boys, some of

874
00:35:22,560 --> 00:35:25,000
Speaker 2: my daughter's friends from high school. Like they're like they're talkers.

875
00:35:25,040 --> 00:35:26,800
Speaker 2: I'm like, man, I get these guys here on the phone.

876
00:35:27,000 --> 00:35:28,759
Speaker 2: So let's talk about how do we get into this.

877
00:35:28,800 --> 00:35:31,640
Speaker 2: You've already kind of said there's like different levels to

878
00:35:31,680 --> 00:35:33,440
Speaker 2: play in this game, right, So the first thing, if

879
00:35:33,480 --> 00:35:35,960
Speaker 2: I have no money, I like it. I want to

880
00:35:35,960 --> 00:35:37,640
Speaker 2: get into real estate. I could just start to go

881
00:35:37,680 --> 00:35:39,640
Speaker 2: find deals. So I could just basically just burn the

882
00:35:39,640 --> 00:35:42,120
Speaker 2: phones down, find deals and pass those off. That's like

883
00:35:42,280 --> 00:35:43,240
Speaker 2: stage one, I guess.

884
00:35:43,360 --> 00:35:45,640
Speaker 1: Yeah, so stage one depends on your personality type. Like

885
00:35:45,640 --> 00:35:47,000
Speaker 1: a guy like you and a guy like me, we're

886
00:35:47,040 --> 00:35:48,959
Speaker 1: gonna be great on the phone. Right, there's other people

887
00:35:48,960 --> 00:35:51,000
Speaker 1: here that are listening right now that I work on

888
00:35:51,040 --> 00:35:53,040
Speaker 1: my ninety five, I don't have time for that. Okay,

889
00:35:53,080 --> 00:35:55,799
Speaker 1: Well you could buy deals from me or Mark. We

890
00:35:55,840 --> 00:35:57,919
Speaker 1: would just sell those deals to you, so that there's

891
00:35:58,000 --> 00:36:00,759
Speaker 1: multiple ways to make money from this, and not all

892
00:36:00,800 --> 00:36:02,919
Speaker 1: of them have to deal with the phone. So let's

893
00:36:02,920 --> 00:36:05,160
Speaker 1: say it's me and you and Mark. You want to

894
00:36:05,160 --> 00:36:07,680
Speaker 1: start this tomorrow. Based on your personality and your ability

895
00:36:07,719 --> 00:36:09,879
Speaker 1: to put a team of people together, what I would

896
00:36:09,920 --> 00:36:11,800
Speaker 1: do is I would only call expired listings in a

897
00:36:11,840 --> 00:36:12,759
Speaker 1: market you're excited about.

898
00:36:12,800 --> 00:36:14,000
Speaker 2: I like to get a couple of guys on the

899
00:36:14,000 --> 00:36:14,759
Speaker 2: phone dialing down.

900
00:36:14,840 --> 00:36:16,880
Speaker 1: Yeah, I would do. There's a dialer we use called

901
00:36:16,960 --> 00:36:19,400
Speaker 1: Vulcan seven. Vulcan seven like makes it super easy to

902
00:36:19,400 --> 00:36:21,080
Speaker 1: do listuff. I don't have an affiliate with them, that's

903
00:36:21,120 --> 00:36:24,279
Speaker 1: just who we use. Vulcan seven. Don't have it yet? Yeah,

904
00:36:24,280 --> 00:36:26,319
Speaker 1: I don't have it yet, maybe I'll get on. So

905
00:36:26,920 --> 00:36:29,560
Speaker 1: Vulcan seven gives you all the data of the people

906
00:36:29,600 --> 00:36:33,000
Speaker 1: who are expired listings. They just fired their real estate agent.

907
00:36:33,040 --> 00:36:34,920
Speaker 1: They give you a new list every single morning. It's

908
00:36:34,960 --> 00:36:38,360
Speaker 1: usually in your market. Let's say my market is Maricopa County,

909
00:36:38,480 --> 00:36:42,160
Speaker 1: Phoenix Era area. About forty new leads a day. That's it,

910
00:36:42,400 --> 00:36:46,239
Speaker 1: forty and those people just fired their agent. They've been

911
00:36:46,280 --> 00:36:48,560
Speaker 1: trying to sell their house for six months, half of

912
00:36:48,560 --> 00:36:50,840
Speaker 1: a freaking year. Yeah, that's who I'm calling. I'm not

913
00:36:50,880 --> 00:36:53,640
Speaker 1: just calling Rando's right. I'm calling people that I know

914
00:36:53,960 --> 00:36:56,240
Speaker 1: are trying to sell their house. A real estate agent

915
00:36:56,239 --> 00:36:58,959
Speaker 1: couldn't solve their problem. There's forty of those a day

916
00:36:59,120 --> 00:37:02,160
Speaker 1: in my market, already a day. So I'm calling them

917
00:37:02,239 --> 00:37:04,880
Speaker 1: up and going, I'm not an agent, I'm a buyer.

918
00:37:05,280 --> 00:37:06,600
Speaker 1: I'd like to meet with you, or have somebody on

919
00:37:06,640 --> 00:37:07,880
Speaker 1: our team come and meet with you. We want to

920
00:37:07,880 --> 00:37:10,359
Speaker 1: look at taking a swing at buy in the house.

921
00:37:10,440 --> 00:37:13,000
Speaker 1: We'd like to give you an offer today and either

922
00:37:13,040 --> 00:37:15,160
Speaker 1: A we can give them a cash offer, which I

923
00:37:15,200 --> 00:37:17,239
Speaker 1: don't do a lot of cash deals, or B I

924
00:37:17,280 --> 00:37:18,719
Speaker 1: go to them, I go, We'd like to just take

925
00:37:18,760 --> 00:37:21,279
Speaker 1: over the payments. If you have existing payments, give you

926
00:37:21,320 --> 00:37:24,200
Speaker 1: a little bit of money, or if you own the

927
00:37:24,200 --> 00:37:26,120
Speaker 1: property out right, I'd like to just make payments to you.

928
00:37:26,480 --> 00:37:28,520
Speaker 1: Let's say the seller says no, what do I do?

929
00:37:28,800 --> 00:37:30,120
Speaker 1: I call the other thirty nine leads.

930
00:37:30,160 --> 00:37:30,440
Speaker 2: Sure.

931
00:37:30,920 --> 00:37:32,640
Speaker 1: If the seller says yes, what I do is I

932
00:37:32,680 --> 00:37:34,719
Speaker 1: send him over a DOCU sign. I don't have to

933
00:37:34,760 --> 00:37:36,319
Speaker 1: meet the seller in person. I don't have to go

934
00:37:36,320 --> 00:37:38,279
Speaker 1: that route if you choose not to, I get the

935
00:37:38,280 --> 00:37:40,600
Speaker 1: house under contract. Now have a couple of choices. There's

936
00:37:40,640 --> 00:37:43,200
Speaker 1: three ways I can make money. One, I can keep

937
00:37:43,239 --> 00:37:45,200
Speaker 1: it putting in my portfolio, which is ninety percent of

938
00:37:45,239 --> 00:37:47,080
Speaker 1: what I do. Now. I'm at a phase same thing

939
00:37:47,120 --> 00:37:48,560
Speaker 1: with you, know, you and your life. You're at a

940
00:37:48,600 --> 00:37:50,480
Speaker 1: phase where you're like, I want to accumulate assets and

941
00:37:50,480 --> 00:37:54,120
Speaker 1: build wealth. That's easy for me. Somebody else watching this

942
00:37:54,200 --> 00:37:55,520
Speaker 1: right now is like, wait, hold on, I don't want that.

943
00:37:55,520 --> 00:37:57,600
Speaker 1: I don't want the responsibility of tenants and management and

944
00:37:57,600 --> 00:37:58,759
Speaker 1: all that kind of stuff. I don't want to deal

945
00:37:58,760 --> 00:38:01,839
Speaker 1: with payments and d and rentations. Cool, don't worry about that.

946
00:38:02,160 --> 00:38:04,080
Speaker 1: A lot of people that are out there finding deals,

947
00:38:04,120 --> 00:38:06,760
Speaker 1: they make an entire business. Like Andrew I just referenced

948
00:38:07,080 --> 00:38:09,879
Speaker 1: Andrew will get a property under contract seller says yes,

949
00:38:10,440 --> 00:38:13,080
Speaker 1: you then sell the rights to that contract, you assign it.

950
00:38:13,200 --> 00:38:16,239
Speaker 1: You make twenty thirty thousand dollars just assigning it somebody

951
00:38:16,320 --> 00:38:19,239
Speaker 1: like me. So I'd say eighty percent of my deal

952
00:38:19,239 --> 00:38:23,200
Speaker 1: flow today as a buyer actually comes from teams that

953
00:38:23,239 --> 00:38:25,480
Speaker 1: are out there calling expired listings and then just selling

954
00:38:25,480 --> 00:38:28,080
Speaker 1: their deals to me and making a fee for doing so.

955
00:38:28,080 --> 00:38:29,719
Speaker 1: So there's two ways to do that. Or you could

956
00:38:29,719 --> 00:38:31,239
Speaker 1: flip it. You could put on the market and sell

957
00:38:31,239 --> 00:38:32,880
Speaker 1: it back on the market, whatever else. There's a week to.

958
00:38:32,880 --> 00:38:33,799
Speaker 2: Talk about wrapping it.

959
00:38:34,000 --> 00:38:37,640
Speaker 1: Yeah, you can talk about options, executory contracts, there's so

960
00:38:37,680 --> 00:38:39,520
Speaker 1: many things you could do. But if you want to

961
00:38:39,520 --> 00:38:41,919
Speaker 1: make money today, you're selling the contract. Right, you're making

962
00:38:41,960 --> 00:38:44,960
Speaker 1: money less than a week twenty thousand bucks. Like Andrew

963
00:38:45,000 --> 00:38:48,439
Speaker 1: Maguire thinks, since October he's made like three hundred thousand

964
00:38:48,440 --> 00:38:50,080
Speaker 1: bucks just in a matter of a couple of months.

965
00:38:50,120 --> 00:38:52,480
Speaker 1: And he went from going I'm looking for a job

966
00:38:52,520 --> 00:38:55,000
Speaker 1: to I made sixty one thousand dollars my first month

967
00:38:55,040 --> 00:38:58,920
Speaker 1: doing this type of thing, right, so let me just

968
00:38:59,239 --> 00:39:00,120
Speaker 1: expire listings.

969
00:39:00,280 --> 00:39:02,760
Speaker 2: So if you're listening to this and you like dialing

970
00:39:02,800 --> 00:39:04,720
Speaker 2: down on real estate and you want to find some deals,

971
00:39:04,719 --> 00:39:05,640
Speaker 2: so hit me up. Maybe.

972
00:39:05,640 --> 00:39:07,799
Speaker 1: Well what I would do is I would I would

973
00:39:07,800 --> 00:39:09,800
Speaker 1: have two people on your team. Yeah, and I would

974
00:39:09,960 --> 00:39:12,279
Speaker 1: you know, know, you've done so many real estate transactions,

975
00:39:12,800 --> 00:39:14,600
Speaker 1: so I would have two people on my team here.

976
00:39:14,640 --> 00:39:17,120
Speaker 1: And all they're doing is calling expired listings. That's it.

977
00:39:17,200 --> 00:39:20,160
Speaker 1: They don't do anything else except for call expired listings.

978
00:39:20,320 --> 00:39:22,640
Speaker 1: It's not really cold callings. People are already trying to

979
00:39:22,680 --> 00:39:25,239
Speaker 1: sell their house. You're just calling with the solution. What

980
00:39:25,320 --> 00:39:26,080
Speaker 1: about moving down?

981
00:39:26,200 --> 00:39:27,799
Speaker 2: Like you said it's six months, so like what about

982
00:39:27,960 --> 00:39:29,400
Speaker 2: like five months or four months?

983
00:39:29,760 --> 00:39:32,560
Speaker 1: So those are active on market deals and I will

984
00:39:32,560 --> 00:39:34,279
Speaker 1: call them, but I'm not calling the seller. I'm calling

985
00:39:34,280 --> 00:39:37,080
Speaker 1: the agent. So we have a larger team.

986
00:39:37,120 --> 00:39:38,040
Speaker 2: So kind of like that.

987
00:39:38,239 --> 00:39:39,799
Speaker 1: No agents love it, Oh they do, Yeah, I have

988
00:39:39,800 --> 00:39:41,040
Speaker 1: a lot of Like if you go on my YouTube

989
00:39:41,120 --> 00:39:42,920
Speaker 1: Channital see me working with agents all the time. They

990
00:39:42,920 --> 00:39:44,799
Speaker 1: love it. What happens is I'm not going to bother

991
00:39:44,880 --> 00:39:46,759
Speaker 1: the agent for the first one hundred days, right, So

992
00:39:46,800 --> 00:39:50,000
Speaker 1: if they're listing, their typical listing agreement for an agent

993
00:39:50,080 --> 00:39:52,479
Speaker 1: and a seller is six months, one hundred and eighty days.

994
00:39:52,920 --> 00:39:54,960
Speaker 1: My team has a trigger point at one hundred days,

995
00:39:55,000 --> 00:39:57,040
Speaker 1: so we start calling the agent directly and saying, hey,

996
00:39:57,120 --> 00:39:58,680
Speaker 1: looks like you're having a hard time selling the house.

997
00:39:59,040 --> 00:40:00,920
Speaker 1: We might not be the best Aspire for you, but

998
00:40:01,200 --> 00:40:03,400
Speaker 1: we buy houses by taking over payments. It looks like

999
00:40:03,400 --> 00:40:05,439
Speaker 1: your seller doesn't have enough equity or maybe they're looking

1000
00:40:05,480 --> 00:40:07,759
Speaker 1: for too much money. If we can work out some

1001
00:40:07,800 --> 00:40:10,520
Speaker 1: sort of creative terms, you can get paid your commissions

1002
00:40:10,520 --> 00:40:11,640
Speaker 1: and we can get the seller what you do.

1003
00:40:11,800 --> 00:40:13,600
Speaker 2: You still get them commission, of course, yeah, they still

1004
00:40:13,600 --> 00:40:15,799
Speaker 2: get paid because on the expired one then they're cut out.

1005
00:40:16,080 --> 00:40:17,759
Speaker 1: Yeah, but here's what ends up happening. I'll give you

1006
00:40:17,760 --> 00:40:20,000
Speaker 1: a quick story on this. This happens. This is a

1007
00:40:20,080 --> 00:40:24,400
Speaker 1: very typical type of flow. So my team calls a

1008
00:40:24,480 --> 00:40:28,840
Speaker 1: property on forty one oh one West Flower Street, Okay, Phoenix, Arizona.

1009
00:40:28,880 --> 00:40:31,120
Speaker 1: This is an address I own today. This is like

1010
00:40:31,239 --> 00:40:32,840
Speaker 1: eighty percent of the time we call an agent. This

1011
00:40:32,880 --> 00:40:37,040
Speaker 1: is what ends up happening. House is listed. We can

1012
00:40:37,040 --> 00:40:39,239
Speaker 1: see that the house has a two percent interest rate.

1013
00:40:39,239 --> 00:40:41,919
Speaker 1: He bought it with a VA loan. It's super low rate.

1014
00:40:41,960 --> 00:40:45,359
Speaker 1: We want that house right hits one hundred days. Who

1015
00:40:45,360 --> 00:40:47,560
Speaker 1: do we call. We call the agent. Hey, agent, looks

1016
00:40:47,560 --> 00:40:49,319
Speaker 1: like the house has been listed for over one hundred days.

1017
00:40:49,320 --> 00:40:51,560
Speaker 1: Want to tell you we are open to taking over

1018
00:40:51,560 --> 00:40:55,359
Speaker 1: the payments, getting your commissions paid. The agent says, no,

1019
00:40:55,400 --> 00:40:58,040
Speaker 1: my seller's not interested in that. Okay, no problem. We

1020
00:40:58,120 --> 00:41:00,319
Speaker 1: call back one hundred and twenty days, same thing, hundred

1021
00:41:00,320 --> 00:41:02,600
Speaker 1: and forty, one hundred and sixty, same thing, one hundred

1022
00:41:02,640 --> 00:41:04,960
Speaker 1: and seventy ninth day, the day before they get fired,

1023
00:41:05,239 --> 00:41:08,520
Speaker 1: say the same thing. Okay. Agent says, my seller's not

1024
00:41:08,600 --> 00:41:12,000
Speaker 1: interested in that, No problem. Appreciate you, Thank you so much.

1025
00:41:12,280 --> 00:41:14,239
Speaker 1: What do we do? Two days later, we call the

1026
00:41:14,280 --> 00:41:17,040
Speaker 1: seller directly, Hey, Bob, we've been trying to buy your house.

1027
00:41:17,080 --> 00:41:18,839
Speaker 1: We worked with your real estate agent. We submitted an

1028
00:41:18,840 --> 00:41:21,320
Speaker 1: offer that would include us taking over your existing payments

1029
00:41:21,360 --> 00:41:23,160
Speaker 1: on your VA loan. Are you open to something like that?

1030
00:41:23,200 --> 00:41:25,600
Speaker 1: And he goes, my agent never said anything to me

1031
00:41:25,680 --> 00:41:27,880
Speaker 1: about this stuff. This is very typical. Happens all the

1032
00:41:27,880 --> 00:41:30,560
Speaker 1: time with real estate agents. What they don't understand or

1033
00:41:30,560 --> 00:41:32,440
Speaker 1: they didn't learn in school in they're two weeks school.

1034
00:41:33,120 --> 00:41:34,839
Speaker 1: A lot of us think real estate agents know must

1035
00:41:34,920 --> 00:41:36,200
Speaker 1: a lot about real estate. They really don't.

1036
00:41:36,200 --> 00:41:36,920
Speaker 2: It's a couple of months.

1037
00:41:36,920 --> 00:41:39,319
Speaker 1: Come on, Yeah, well, if you look at like you

1038
00:41:39,360 --> 00:41:41,320
Speaker 1: look at it, the average agent is going to school

1039
00:41:41,320 --> 00:41:44,040
Speaker 1: for sixty hours. Yeah, a barber goes to school for

1040
00:41:44,040 --> 00:41:46,960
Speaker 1: twelve hundred. Yeah, what the hell? What are we talking about? Yeah,

1041
00:41:47,000 --> 00:41:49,960
Speaker 1: you're giving people a license to be called a licensed

1042
00:41:49,960 --> 00:41:52,520
Speaker 1: real estate agent that didn't even go to school one

1043
00:41:52,600 --> 00:41:55,400
Speaker 1: twentieth of somebody who cuts hair. Yeah that's crazy, Okay,

1044
00:41:55,480 --> 00:41:57,480
Speaker 1: So I'm not saying that to bash on agents. I'm

1045
00:41:57,480 --> 00:42:00,320
Speaker 1: trying to give that the audience and understanding that agents

1046
00:42:00,400 --> 00:42:02,880
Speaker 1: don't know creative finance. They don't learn they don't even

1047
00:42:02,960 --> 00:42:05,640
Speaker 1: learn traditional real estate in real estate school, let alone

1048
00:42:05,680 --> 00:42:08,040
Speaker 1: creative finance, which is legal in all fifty states. It's

1049
00:42:08,080 --> 00:42:10,719
Speaker 1: been done for hundreds of years. So of course I'm

1050
00:42:10,719 --> 00:42:13,760
Speaker 1: going to run into agents that say, my seller's not interested.

1051
00:42:13,840 --> 00:42:15,480
Speaker 1: What they're really saying is I don't know how to

1052
00:42:15,480 --> 00:42:17,799
Speaker 1: pitch that to my seller, and I don't want to

1053
00:42:17,840 --> 00:42:19,680
Speaker 1: admit to you that I don't know what I'm doing,

1054
00:42:19,840 --> 00:42:21,920
Speaker 1: So I'm just going to let They're more willing to

1055
00:42:22,000 --> 00:42:24,200
Speaker 1: let the listing go and get fired and lose six

1056
00:42:24,239 --> 00:42:27,000
Speaker 1: months of their life than admit that a licensed professional

1057
00:42:27,080 --> 00:42:29,719
Speaker 1: knows less than a non licensed professional. Right, So what

1058
00:42:29,800 --> 00:42:32,359
Speaker 1: we do on that house on forty one oh one

1059
00:42:32,400 --> 00:42:34,719
Speaker 1: West Flower, I took that. I turned that into a

1060
00:42:34,719 --> 00:42:38,080
Speaker 1: co living house. I think co living pad split is

1061
00:42:38,120 --> 00:42:40,279
Speaker 1: what we call it. I think that is the number

1062
00:42:40,320 --> 00:42:43,400
Speaker 1: one exit strategy for the next ten years. Why affordability

1063
00:42:43,920 --> 00:42:46,240
Speaker 1: in the cities. Oh yeah, the cities like think about

1064
00:42:46,280 --> 00:42:47,160
Speaker 1: like thee.

1065
00:42:46,840 --> 00:42:48,840
Speaker 2: In San Francisco, They're like doing pods.

1066
00:42:48,560 --> 00:42:50,399
Speaker 1: There you go, like those types of things. What are

1067
00:42:50,440 --> 00:42:53,480
Speaker 1: ways that the migrant like the migrant situation that's going

1068
00:42:53,520 --> 00:42:55,200
Speaker 1: on right now, ten thousand new people are coming into

1069
00:42:55,200 --> 00:42:58,319
Speaker 1: our country every single day where they living. What's going

1070
00:42:58,360 --> 00:43:01,720
Speaker 1: to happen is the governments spend money and letting people

1071
00:43:01,960 --> 00:43:03,279
Speaker 1: shack up with each other. You see what they just

1072
00:43:03,280 --> 00:43:05,080
Speaker 1: did in New York. They say they're offering New York

1073
00:43:05,640 --> 00:43:07,200
Speaker 1: you had to host them to host the one hundred

1074
00:43:07,200 --> 00:43:10,160
Speaker 1: and twenty five dollars a day, bro wow, three or

1075
00:43:10,200 --> 00:43:12,600
Speaker 1: four thousand dollars a month to let them rent one

1076
00:43:12,680 --> 00:43:13,200
Speaker 1: room from you.

1077
00:43:13,320 --> 00:43:13,560
Speaker 2: Wow.

1078
00:43:13,640 --> 00:43:16,920
Speaker 1: So it's called co living and three grand bedroom three

1079
00:43:17,000 --> 00:43:17,920
Speaker 1: gramdma a bedroom.

1080
00:43:18,000 --> 00:43:19,319
Speaker 2: That's colting numbers.

1081
00:43:19,040 --> 00:43:22,160
Speaker 1: There you go, that is assisted living numbers. It's massive numbers.

1082
00:43:22,200 --> 00:43:23,919
Speaker 1: So you look at that model, and you go, I'll

1083
00:43:23,960 --> 00:43:26,239
Speaker 1: take over Bob's house on forty one oh one West

1084
00:43:26,239 --> 00:43:27,839
Speaker 1: Flower Street. We already did, we own it, and it's

1085
00:43:27,880 --> 00:43:30,359
Speaker 1: already a co living property. The payment I took over

1086
00:43:30,400 --> 00:43:33,840
Speaker 1: from him is two thousand dollars a month. Property principal, interest, taxes,

1087
00:43:33,880 --> 00:43:36,400
Speaker 1: insurance management, everything in two thousand dollars a month in

1088
00:43:36,760 --> 00:43:39,600
Speaker 1: that property. I broke broke it up into eight bedrooms.

1089
00:43:39,640 --> 00:43:42,400
Speaker 1: It brings in like seven thousand dollars a month. And

1090
00:43:42,480 --> 00:43:44,279
Speaker 1: I'm no money out of pocket on the deal, and

1091
00:43:44,320 --> 00:43:46,600
Speaker 1: I'm cash flowing seven thousand. I'm bringing it in seven thousand.

1092
00:43:46,880 --> 00:43:48,839
Speaker 1: I'm netting probably four to five thousand dollars a month

1093
00:43:48,840 --> 00:43:51,160
Speaker 1: on that. Okay, cool? What did I really do? After that?

1094
00:43:51,600 --> 00:43:55,200
Speaker 1: I then call the agent who got fired and they said, hey,

1095
00:43:55,200 --> 00:43:57,600
Speaker 1: this is Pace. I want to meet up with you

1096
00:43:57,680 --> 00:43:59,439
Speaker 1: for lunch. I got a twenty five hundred dollars check

1097
00:43:59,480 --> 00:44:02,800
Speaker 1: for you. Like for what? And I go, well, remember

1098
00:44:02,840 --> 00:44:05,080
Speaker 1: I offered creative finance to you and you never present

1099
00:44:05,160 --> 00:44:07,120
Speaker 1: it to your seller. Well, we just waited until you

1100
00:44:07,400 --> 00:44:09,200
Speaker 1: got let go of. We called the seller, we worked

1101
00:44:09,200 --> 00:44:10,880
Speaker 1: out the deal directly, and I want to pay you

1102
00:44:10,960 --> 00:44:13,279
Speaker 1: twenty five hundred dollars and the agent's like, why would

1103
00:44:13,320 --> 00:44:14,560
Speaker 1: you do that? And I'm like, yeah, why would you?

1104
00:44:14,600 --> 00:44:16,600
Speaker 1: Because I want to do more deals with you. I

1105
00:44:16,640 --> 00:44:18,160
Speaker 1: want to do more deals with you. As an agent.

1106
00:44:18,200 --> 00:44:19,840
Speaker 1: I wanted to sit down with you and show you

1107
00:44:19,880 --> 00:44:22,160
Speaker 1: here's the paperwork. We went through Fidelity Title, we got

1108
00:44:22,200 --> 00:44:24,520
Speaker 1: title insurance, We did this all legally, and you missed

1109
00:44:24,520 --> 00:44:26,799
Speaker 1: out on thirteen thousand dollars. And I want to give

1110
00:44:26,800 --> 00:44:28,839
Speaker 1: you twenty five hundred dollars as an investment to go

1111
00:44:28,840 --> 00:44:31,120
Speaker 1: out and go get me more of these opportunities. And

1112
00:44:31,160 --> 00:44:33,520
Speaker 1: so that agent and I on the Flowerhouse we've done

1113
00:44:33,600 --> 00:44:35,880
Speaker 1: I think twelve deals in the last year year together

1114
00:44:35,960 --> 00:44:40,000
Speaker 1: since they failed to present to the seller. Now, that

1115
00:44:40,080 --> 00:44:42,080
Speaker 1: sounds like a lot of information. Somebody watching right now

1116
00:44:42,120 --> 00:44:43,879
Speaker 1: is like, I can't do this, and you're probably right.

1117
00:44:43,920 --> 00:44:46,319
Speaker 1: You can't do what I do, but you can buy

1118
00:44:46,360 --> 00:44:48,520
Speaker 1: deals from people like me that it's locking up these

1119
00:44:48,640 --> 00:44:50,680
Speaker 1: types of transactions all the time. It's really simple.

1120
00:44:50,760 --> 00:44:52,360
Speaker 2: Yes, that's what I want to talk about. So success

1121
00:44:52,400 --> 00:44:54,480
Speaker 2: leaves clues. Tony Robbins, you said you're going to go

1122
00:44:54,480 --> 00:44:56,320
Speaker 2: see him, That's what he says, right Succetly, his clues

1123
00:44:56,360 --> 00:44:58,400
Speaker 2: but you can't do what Pace does. You have to

1124
00:44:58,440 --> 00:45:01,000
Speaker 2: kind of do what Pace did. And so there's different levels.

1125
00:45:01,040 --> 00:45:03,040
Speaker 2: So one level one is anyone can get on the

1126
00:45:03,040 --> 00:45:04,239
Speaker 2: phone and start dialing.

1127
00:45:04,360 --> 00:45:06,280
Speaker 1: I would work from a Mark. I would I would

1128
00:45:06,400 --> 00:45:08,040
Speaker 1: not even try and close the deal. What I would

1129
00:45:08,080 --> 00:45:10,680
Speaker 1: do is I would work for Mark or Pace and say,

1130
00:45:10,719 --> 00:45:12,640
Speaker 1: how do I work for you for ninety days? And

1131
00:45:12,760 --> 00:45:15,319
Speaker 1: all I'm doing is setting appointments for Mark to talk

1132
00:45:15,320 --> 00:45:17,120
Speaker 1: to the seller, right right, Hey, I work for a

1133
00:45:17,120 --> 00:45:18,719
Speaker 1: company they'd like to buy your house. Can I get

1134
00:45:18,719 --> 00:45:20,800
Speaker 1: you on appointment with with Mark, the owner of the company.

1135
00:45:20,840 --> 00:45:22,279
Speaker 1: He'd love to chat with you about buying your house,

1136
00:45:22,280 --> 00:45:24,839
Speaker 1: taking over existing payments. There's a script there. You can

1137
00:45:24,840 --> 00:45:26,920
Speaker 1: follow a script and then they get paid a commission

1138
00:45:26,920 --> 00:45:29,120
Speaker 1: when you go buy the house three months later. Like,

1139
00:45:29,120 --> 00:45:31,319
Speaker 1: oh my gosh, this is so simple. I understand this.

1140
00:45:31,400 --> 00:45:33,520
Speaker 1: Go do your own thing or start doing it on

1141
00:45:33,560 --> 00:45:35,359
Speaker 1: the side. Yeah, so you can.

1142
00:45:35,600 --> 00:45:37,239
Speaker 2: You could just get the person on the phone like

1143
00:45:37,520 --> 00:45:39,759
Speaker 2: a setter if you will, then you could be the

1144
00:45:39,800 --> 00:45:42,480
Speaker 2: closer that then hands the deal off. Yeah, you could

1145
00:45:42,480 --> 00:45:45,480
Speaker 2: be the person that actually takes the deal and buys it.

1146
00:45:45,719 --> 00:45:47,040
Speaker 1: So those are like the couple you could be the

1147
00:45:47,040 --> 00:45:49,839
Speaker 1: transaction coordinator. Transaction coordinat a lot of like we call

1148
00:45:49,880 --> 00:45:53,120
Speaker 1: them top tier transaction coordinators. They understand creative finance.

1149
00:45:53,160 --> 00:45:55,319
Speaker 2: So if you're from the mortgage industry, you work at

1150
00:45:55,320 --> 00:45:56,759
Speaker 2: Title escro something.

1151
00:45:56,520 --> 00:45:58,680
Speaker 1: Like crush It, crush it, you crush it as a

1152
00:45:58,680 --> 00:46:02,040
Speaker 1: transaction coordinator, right, and then the other people that make

1153
00:46:02,040 --> 00:46:04,680
Speaker 1: money in it. You're on somebody's team. The other thing

1154
00:46:04,760 --> 00:46:06,600
Speaker 1: is when I do need money and a seller wants

1155
00:46:06,640 --> 00:46:08,360
Speaker 1: a down payment, I bring private money lenders in and

1156
00:46:08,440 --> 00:46:11,239
Speaker 1: they figure out how to I For the longest time,

1157
00:46:11,280 --> 00:46:13,879
Speaker 1: I brought in private money partners so I would go

1158
00:46:13,920 --> 00:46:16,440
Speaker 1: find the deals and I didn't have money to get started,

1159
00:46:16,480 --> 00:46:18,719
Speaker 1: and I had to pay for renovations or let's say,

1160
00:46:18,719 --> 00:46:21,160
Speaker 1: furniture for an Airbnb let's say, and I'm like, yeah,

1161
00:46:21,160 --> 00:46:23,239
Speaker 1: I got the house down, no money down, but I

1162
00:46:23,280 --> 00:46:25,960
Speaker 1: still like closing costs and furniture. So I go get

1163
00:46:25,960 --> 00:46:28,160
Speaker 1: thirty grand from a private money lender, and I go,

1164
00:46:28,520 --> 00:46:29,960
Speaker 1: I don't want to make payments to you on the

1165
00:46:30,000 --> 00:46:32,920
Speaker 1: thirty grand. Just become my partner and we'll split the

1166
00:46:32,920 --> 00:46:33,399
Speaker 1: cash flow.

1167
00:46:33,520 --> 00:46:33,719
Speaker 2: Yeah.

1168
00:46:33,800 --> 00:46:35,720
Speaker 1: So there's a lot of the private money and people.

1169
00:46:35,800 --> 00:46:37,560
Speaker 1: If you guys are private money lenders. There's ways to

1170
00:46:37,560 --> 00:46:38,879
Speaker 1: get involved in these deals too.

1171
00:46:39,320 --> 00:46:44,280
Speaker 2: Yeah, and in your network that you have, which is massive.

1172
00:46:44,320 --> 00:46:47,880
Speaker 2: We talked about that Network for Life. Network for Life.

1173
00:46:48,120 --> 00:46:50,920
Speaker 2: Do you have all those different roles that are within there, for.

1174
00:46:50,800 --> 00:46:52,120
Speaker 1: Example, call it avatars.

1175
00:46:52,200 --> 00:46:54,000
Speaker 2: Okay, So, like I could join your network and then

1176
00:46:54,040 --> 00:46:55,799
Speaker 2: I have people that are willing to take those deals

1177
00:46:55,840 --> 00:46:57,960
Speaker 2: off of me if I find them, or maybe I

1178
00:46:57,960 --> 00:46:59,600
Speaker 2: could find people that would find deals for me.

1179
00:47:00,040 --> 00:47:01,799
Speaker 1: Yeah. So, like, we have a girl named Elena Tang.

1180
00:47:01,960 --> 00:47:03,759
Speaker 1: She's in our community. She's right down the road from here.

1181
00:47:04,000 --> 00:47:05,719
Speaker 1: She's a licensed therapist. She's like, I don't want to

1182
00:47:05,719 --> 00:47:07,360
Speaker 1: look for deals. I don't want a cold call. I

1183
00:47:07,400 --> 00:47:09,359
Speaker 1: don't want to negotiate, and more importantly, I don't want

1184
00:47:09,360 --> 00:47:11,720
Speaker 1: to learn how to negotiate. But I know that people

1185
00:47:11,719 --> 00:47:13,440
Speaker 1: inside of the community are learning how to do that

1186
00:47:13,480 --> 00:47:15,480
Speaker 1: and they want to make a fee. All I want

1187
00:47:15,480 --> 00:47:17,959
Speaker 1: to do is build a portfolio without using banks, without

1188
00:47:18,040 --> 00:47:20,239
Speaker 1: using massive down payments and all my credentials and all

1189
00:47:20,239 --> 00:47:22,640
Speaker 1: that kind of stuff. So she's been in our community

1190
00:47:22,640 --> 00:47:25,120
Speaker 1: for twenty six months. She's bought twenty four rentals just

1191
00:47:25,160 --> 00:47:27,200
Speaker 1: from other people in the community. She's never called a

1192
00:47:27,239 --> 00:47:29,560
Speaker 1: seller one time. She's never had to worry about paperwork.

1193
00:47:29,600 --> 00:47:32,720
Speaker 1: She's she's even borrowed money for down payments and stuff

1194
00:47:32,719 --> 00:47:34,759
Speaker 1: like that from other people in the community. So she

1195
00:47:34,880 --> 00:47:37,240
Speaker 1: has found her avatar, as I call she's a buyer,

1196
00:47:37,480 --> 00:47:40,440
Speaker 1: is what we call her avatar. There's twenty five other avatars,

1197
00:47:40,440 --> 00:47:43,120
Speaker 1: and what I teach people to go, come into the community,

1198
00:47:43,719 --> 00:47:46,080
Speaker 1: take an avatar test, and I'll help you allocate your

1199
00:47:46,080 --> 00:47:47,960
Speaker 1: time and energy to where you should be based on

1200
00:47:47,960 --> 00:47:50,480
Speaker 1: who you are, your risk tolerance. Like you and I

1201
00:47:51,400 --> 00:47:53,120
Speaker 1: we got all the risk tolerance in the world. Yeah,

1202
00:47:53,160 --> 00:47:55,359
Speaker 1: Like if I lost everything tomorrow, I'd be fine. Yeah,

1203
00:47:55,400 --> 00:47:56,080
Speaker 1: same thing with you.

1204
00:47:56,200 --> 00:47:56,719
Speaker 2: I've done it.

1205
00:47:57,000 --> 00:47:59,520
Speaker 1: Yeah, me too. I've been there. I've had people foul

1206
00:47:59,560 --> 00:48:01,200
Speaker 1: bangrubs on me and next day I wake up and

1207
00:48:01,200 --> 00:48:04,120
Speaker 1: I'm just right back to work. Other people devastated by

1208
00:48:04,120 --> 00:48:06,120
Speaker 1: the sure So you got to, you know, weigh that

1209
00:48:06,200 --> 00:48:08,200
Speaker 1: risk tolerance and find out which avatar you should be

1210
00:48:08,200 --> 00:48:08,759
Speaker 1: focusing on.

1211
00:48:09,040 --> 00:48:12,920
Speaker 2: Yeah, so let's talk about some of that risk. Yeah,

1212
00:48:12,960 --> 00:48:16,000
Speaker 2: so what do you think I mean your goal is.

1213
00:48:16,040 --> 00:48:19,040
Speaker 2: I mean, I think two thousand properties, two thousand doors

1214
00:48:19,320 --> 00:48:21,440
Speaker 2: to two thousand doors. That's a lot. I had up

1215
00:48:21,440 --> 00:48:22,920
Speaker 2: to two hundred at one point a lot.

1216
00:48:23,000 --> 00:48:24,040
Speaker 1: I mean two hundred is a lot.

1217
00:48:24,120 --> 00:48:29,200
Speaker 2: Yeah, but the macroeconomic factors weighed heavy on me. I

1218
00:48:29,320 --> 00:48:31,279
Speaker 2: was really good at making money. I had just had

1219
00:48:31,280 --> 00:48:32,920
Speaker 2: my head down, did really well in real estate. I

1220
00:48:32,920 --> 00:48:35,239
Speaker 2: started a couple different businesses, had big exits on a

1221
00:48:35,280 --> 00:48:38,160
Speaker 2: couple different businesses. But I wasn't paying attention to what

1222
00:48:38,239 --> 00:48:41,600
Speaker 2: was going on in the macroeconomic environment. I didn't understand

1223
00:48:41,640 --> 00:48:44,319
Speaker 2: what the FED was doing, inflation, interest rates, any of that.

1224
00:48:44,800 --> 00:48:48,600
Speaker 2: And I learned, unfortunately, very very quickly that even though

1225
00:48:48,600 --> 00:48:50,840
Speaker 2: I wasn't paying attention to it, it still had massive power

1226
00:48:50,840 --> 00:48:53,759
Speaker 2: and control over my life. So, like you're building up

1227
00:48:53,800 --> 00:48:58,040
Speaker 2: this massive portfolio two thousand properties, we have a lot

1228
00:48:58,040 --> 00:49:00,000
Speaker 2: of potential turmoil going on the financial market.

1229
00:49:00,239 --> 00:49:01,759
Speaker 1: Is the FED gonna pivot? Are we going to go

1230
00:49:01,800 --> 00:49:02,520
Speaker 1: under recession?

1231
00:49:02,920 --> 00:49:05,640
Speaker 2: Or you name it? Right? Plenty of black swans out there.

1232
00:49:05,920 --> 00:49:09,000
Speaker 2: So one, what are you paying? How much do you

1233
00:49:09,000 --> 00:49:09,759
Speaker 2: pay attention to that?

1234
00:49:10,200 --> 00:49:11,200
Speaker 1: And two what do you.

1235
00:49:11,160 --> 00:49:13,360
Speaker 2: Think about that as far as like the risk and

1236
00:49:13,400 --> 00:49:14,800
Speaker 2: the near and long term?

1237
00:49:14,920 --> 00:49:17,040
Speaker 1: Okay, so number one, I pay attention to it a lot,

1238
00:49:17,160 --> 00:49:19,480
Speaker 1: not because I care about it, but because I also

1239
00:49:19,560 --> 00:49:21,359
Speaker 1: have a YouTube channel like you do. You're way better

1240
00:49:21,400 --> 00:49:23,319
Speaker 1: at your YouTube channel than we are. But I pay

1241
00:49:23,360 --> 00:49:25,000
Speaker 1: attention for that so I can talk to my audience

1242
00:49:25,000 --> 00:49:28,200
Speaker 1: about it. But I'm by, like, here's what's crazy. Interest

1243
00:49:28,280 --> 00:49:30,719
Speaker 1: rates today are at seven percent. Right. The interest rates

1244
00:49:30,719 --> 00:49:32,640
Speaker 1: actually just went up. People are talking about, oh, the

1245
00:49:32,680 --> 00:49:34,120
Speaker 1: interest rates are going to go down. They actually just

1246
00:49:34,120 --> 00:49:36,040
Speaker 1: went up in the last thirty days. Right, So rates

1247
00:49:36,040 --> 00:49:38,440
Speaker 1: are over seven percent right now. My average deal that

1248
00:49:38,480 --> 00:49:40,879
Speaker 1: I'm doing is under three percent. What do I care

1249
00:49:40,880 --> 00:49:42,839
Speaker 1: what the FED is doing. I don't care if I'm

1250
00:49:42,880 --> 00:49:46,120
Speaker 1: acquiring because I'm using sub two in sellar finance. None

1251
00:49:46,200 --> 00:49:50,840
Speaker 1: of that touches me. I am disrupting an entire market,

1252
00:49:50,880 --> 00:49:52,960
Speaker 1: and I'm doing something that hundreds of other people have done.

1253
00:49:53,040 --> 00:49:56,680
Speaker 1: Robert g Allen, Ron Legrand, Carlton sheets Like, I'm not

1254
00:49:56,800 --> 00:49:58,920
Speaker 1: the first person. I'm just in sheets. Oh you remember

1255
00:49:58,960 --> 00:50:01,040
Speaker 1: Carlton chats, right, Yeah, so this has been around for

1256
00:50:01,080 --> 00:50:03,719
Speaker 1: a long time and people have been doing it. I'm

1257
00:50:03,719 --> 00:50:05,680
Speaker 1: buying deals at three percent? What do I care what

1258
00:50:05,719 --> 00:50:07,839
Speaker 1: the FED is doing? Now? It does affect me on

1259
00:50:07,880 --> 00:50:09,600
Speaker 1: the macro side of things, in the sense of my

1260
00:50:09,680 --> 00:50:12,120
Speaker 1: equity will go up and down left and right. But

1261
00:50:12,160 --> 00:50:13,759
Speaker 1: what do I care? About my equity. I'm not going

1262
00:50:13,760 --> 00:50:16,040
Speaker 1: down to the grocery store and buying my groceries planing.

1263
00:50:16,160 --> 00:50:18,280
Speaker 2: No, you just care if you can continue making your payments.

1264
00:50:18,280 --> 00:50:20,239
Speaker 2: Because there you got two thousand properties. Like that's what

1265
00:50:20,280 --> 00:50:22,840
Speaker 2: that's back to this building. I got caught because I

1266
00:50:22,840 --> 00:50:23,839
Speaker 2: couldn't carry.

1267
00:50:23,520 --> 00:50:25,640
Speaker 1: Correct And even if you could probably rent it out

1268
00:50:25,719 --> 00:50:27,680
Speaker 1: at the time, I bet you your tenants wouldn't have

1269
00:50:27,680 --> 00:50:29,880
Speaker 1: covered the mortgage. No, No, we're close. There, you got fraction.

1270
00:50:30,080 --> 00:50:32,800
Speaker 1: So like you look at Ken McElroy on a previous episode,

1271
00:50:32,800 --> 00:50:34,520
Speaker 1: I think you did something with him like three months ago,

1272
00:50:35,000 --> 00:50:37,160
Speaker 1: phenomenal episode. I actually watch it like three times. I

1273
00:50:37,200 --> 00:50:39,200
Speaker 1: love Ken. He's a friend of yours, friend of mine,

1274
00:50:39,480 --> 00:50:41,319
Speaker 1: one of the smartest human beings on the planet and

1275
00:50:41,440 --> 00:50:44,359
Speaker 1: nicest And yeah, he bought your guys' screen right there,

1276
00:50:44,800 --> 00:50:48,920
Speaker 1: your a little viboard right there. Ken's awesome. So Ken

1277
00:50:48,960 --> 00:50:50,640
Speaker 1: talked about on your show and he's talked to me

1278
00:50:50,640 --> 00:50:53,000
Speaker 1: about this as well. An asset he had an Austin

1279
00:50:53,440 --> 00:50:56,480
Speaker 1: that he bought in two thousand and seven market crashes.

1280
00:50:56,800 --> 00:50:59,520
Speaker 1: Basically he loses thirty forty percent of the value on this.

1281
00:50:59,560 --> 00:51:02,160
Speaker 1: He's like, I just kept it because my tenants paid

1282
00:51:02,200 --> 00:51:04,080
Speaker 1: the payment. What did I care about the equity? I

1283
00:51:04,160 --> 00:51:06,520
Speaker 1: knew the equity was going to come back right. So

1284
00:51:06,560 --> 00:51:08,560
Speaker 1: it's kind of the same thing with bitcoin, right, Like

1285
00:51:09,080 --> 00:51:11,000
Speaker 1: idiots are the ones that are selling their bitcoin? Right

1286
00:51:11,040 --> 00:51:13,160
Speaker 1: bitcoin goes down, Oh my gosh, I mean I'm worried

1287
00:51:13,160 --> 00:51:14,960
Speaker 1: I should sell. It's like, hold on a second, do

1288
00:51:14,960 --> 00:51:19,920
Speaker 1: you understand the underlying value of this asset? And you're

1289
00:51:19,920 --> 00:51:20,480
Speaker 1: absolutely right?

1290
00:51:20,520 --> 00:51:23,160
Speaker 2: And that was, unfortunately, the very painful lesson I learned

1291
00:51:23,160 --> 00:51:25,160
Speaker 2: going through two thousand and eight here in southern California,

1292
00:51:25,480 --> 00:51:27,239
Speaker 2: all the real estate I owned could not even come

1293
00:51:27,360 --> 00:51:30,080
Speaker 2: close to covering our rent. So when I started rebuilding

1294
00:51:30,080 --> 00:51:32,399
Speaker 2: my portfolio, I told you, I first started doing hard

1295
00:51:32,400 --> 00:51:34,440
Speaker 2: money loans, and I would only loan money on a

1296
00:51:34,480 --> 00:51:36,239
Speaker 2: property that I would want to own if I had to,

1297
00:51:36,320 --> 00:51:37,640
Speaker 2: which I did have to own a few of them,

1298
00:51:37,840 --> 00:51:40,520
Speaker 2: and basically would the rent cover the payment? And was

1299
00:51:40,560 --> 00:51:42,080
Speaker 2: I okay with the cash on cash return?

1300
00:51:42,120 --> 00:51:43,839
Speaker 1: I was going to get to learn the hard way, right,

1301
00:51:43,880 --> 00:51:45,840
Speaker 1: And I've learned the hard way too. I've had assets

1302
00:51:45,840 --> 00:51:47,600
Speaker 1: that don't cash flow, and we don't buy things now

1303
00:51:47,640 --> 00:51:50,759
Speaker 1: that don't cash flow, So there's times I've got I've

1304
00:51:50,800 --> 00:51:54,040
Speaker 1: got an asset in Hawaii. It's my lowest interest rate.

1305
00:51:54,239 --> 00:51:56,000
Speaker 1: I mean, I have a lot of zero percent interest

1306
00:51:56,080 --> 00:51:58,520
Speaker 1: rates from sellers on seller Finance, but the ones where

1307
00:51:58,520 --> 00:52:00,399
Speaker 1: I've taken over payments, my lowest one is one point

1308
00:52:00,480 --> 00:52:01,520
Speaker 1: nine percent in Hawaii.

1309
00:52:01,600 --> 00:52:01,920
Speaker 2: Wow.

1310
00:52:02,080 --> 00:52:04,080
Speaker 1: And I looked at Hawaii. I'm like, I know nothing

1311
00:52:04,080 --> 00:52:07,160
Speaker 1: about Hawaii. What the heck am I doing? This is stupid.

1312
00:52:07,160 --> 00:52:09,359
Speaker 1: This is like a year and a half ago. And

1313
00:52:09,400 --> 00:52:12,120
Speaker 1: I'm like, nah, I'm gonna turn it down. I don't

1314
00:52:12,200 --> 00:52:15,160
Speaker 1: understand the market well enough. And then my team, Molly,

1315
00:52:15,280 --> 00:52:18,200
Speaker 1: she's my head of operation, She's like, just find somebody

1316
00:52:18,200 --> 00:52:19,640
Speaker 1: in Hawaii that knows what the hell they're doing. This

1317
00:52:19,680 --> 00:52:21,440
Speaker 1: is a great assets right on the ocean, right on

1318
00:52:21,480 --> 00:52:23,840
Speaker 1: the thing. And so I got educated and I found

1319
00:52:24,080 --> 00:52:26,080
Speaker 1: a tenant that will that signed a three year lease,

1320
00:52:26,120 --> 00:52:28,040
Speaker 1: and I said, all right, I can cash flow this thing.

1321
00:52:28,040 --> 00:52:30,960
Speaker 1: I can understand that. I can understand that somebody who's

1322
00:52:30,960 --> 00:52:33,480
Speaker 1: willing to give me a cash flowing lease something that's

1323
00:52:33,480 --> 00:52:36,120
Speaker 1: going to make money and cover the payments. But for

1324
00:52:36,120 --> 00:52:38,319
Speaker 1: the most part, I stayed to very specific markets for

1325
00:52:38,400 --> 00:52:40,239
Speaker 1: me that I understand really well, and I know that

1326
00:52:40,280 --> 00:52:41,800
Speaker 1: they're going to cash flow or they're not going to

1327
00:52:41,840 --> 00:52:44,759
Speaker 1: cash flow. And I also know that markets might be

1328
00:52:45,239 --> 00:52:47,960
Speaker 1: renting too high, like Phoenix, Arizona. Last year, the rents

1329
00:52:48,000 --> 00:52:50,160
Speaker 1: went above where they are going to be in my

1330
00:52:50,200 --> 00:52:51,840
Speaker 1: opinion twelve months, I think rents are going to come

1331
00:52:51,840 --> 00:52:55,160
Speaker 1: down a little bit. So I understand that about my market.

1332
00:52:55,560 --> 00:52:57,680
Speaker 1: That's where the macro comes in, is that I go, yep,

1333
00:52:57,760 --> 00:53:00,279
Speaker 1: rents went up. I need to be smart and that

1334
00:53:00,320 --> 00:53:04,319
Speaker 1: when my lease or my tenants renew their leases, they're

1335
00:53:04,320 --> 00:53:06,640
Speaker 1: going to renew a lease is two hundred dollars lower

1336
00:53:06,680 --> 00:53:10,680
Speaker 1: because I understand the macro. So yeah, there's tough things

1337
00:53:10,680 --> 00:53:13,040
Speaker 1: involved in this business. But again it's why a lot

1338
00:53:13,080 --> 00:53:15,680
Speaker 1: of people like and Andrew McGuire go, I'm not ready

1339
00:53:15,680 --> 00:53:18,879
Speaker 1: to own. I'm not ready to understand the macro. I'm

1340
00:53:18,960 --> 00:53:19,879
Speaker 1: not freaking market.

1341
00:53:19,960 --> 00:53:22,799
Speaker 2: Yeah, well, you have to make sure that one I say,

1342
00:53:23,400 --> 00:53:28,000
Speaker 2: risk is in the investor, not the investment. If I

1343
00:53:28,040 --> 00:53:30,000
Speaker 2: took somebody from Kansas, I don't know about you, but

1344
00:53:30,000 --> 00:53:31,719
Speaker 2: if I took maybe maybe, if I took you to

1345
00:53:31,719 --> 00:53:33,600
Speaker 2: Hawaii and I took you to the north short of

1346
00:53:33,640 --> 00:53:35,959
Speaker 2: pipeline and the waves are thirty feet, I'm like, pace,

1347
00:53:36,040 --> 00:53:38,480
Speaker 2: let's go out there like you might drownded.

1348
00:53:38,480 --> 00:53:40,760
Speaker 1: I wouldn't have made the flight. But yet there's.

1349
00:53:40,560 --> 00:53:42,279
Speaker 2: People, there's one hundred people in the water every day

1350
00:53:42,280 --> 00:53:43,480
Speaker 2: that are just playing out there having fun.

1351
00:53:43,520 --> 00:53:44,920
Speaker 1: There you go, right, and it's.

1352
00:53:44,800 --> 00:53:47,920
Speaker 2: Because they've built up the skill, they've built up, you know,

1353
00:53:47,960 --> 00:53:49,560
Speaker 2: the ability to be able to do that. And so

1354
00:53:49,600 --> 00:53:51,200
Speaker 2: that's what I mean. The risk is in the investor,

1355
00:53:51,239 --> 00:53:52,400
Speaker 2: and so like you said, you have to kind of

1356
00:53:52,400 --> 00:53:55,280
Speaker 2: build that up and a couple things one experience obviously,

1357
00:53:55,840 --> 00:53:57,400
Speaker 2: but two you also have to make sure you have

1358
00:53:57,520 --> 00:53:59,840
Speaker 2: sort of the capital and the finances to kind of

1359
00:54:00,000 --> 00:54:01,840
Speaker 2: whether those storms goes back to the point here I

1360
00:54:01,880 --> 00:54:03,759
Speaker 2: couldn't carry so I don't want to end up with

1361
00:54:03,840 --> 00:54:05,279
Speaker 2: fifty homes and all of a sudden we get a

1362
00:54:05,280 --> 00:54:07,879
Speaker 2: downturn in the market and now I got to cover

1363
00:54:07,920 --> 00:54:10,200
Speaker 2: the rent of thirty percent of my portfolio. Some of

1364
00:54:10,239 --> 00:54:12,600
Speaker 2: that comes down to skill like Ken McRoy, going back

1365
00:54:12,600 --> 00:54:15,120
Speaker 2: to him, he's very good, Like during even the twenty

1366
00:54:15,120 --> 00:54:17,399
Speaker 2: twenty pandemic and two thousand and eight, like he kept

1367
00:54:17,400 --> 00:54:19,799
Speaker 2: his rent rolls very high, high percentage, So a lot

1368
00:54:19,800 --> 00:54:20,920
Speaker 2: of that's property management.

1369
00:54:21,440 --> 00:54:22,880
Speaker 1: Yeah, he's one of the best in the industry.

1370
00:54:23,000 --> 00:54:27,520
Speaker 2: And then you know, you have a background in construction, construction,

1371
00:54:27,960 --> 00:54:30,319
Speaker 2: and man. Some of the big dangers are getting into

1372
00:54:30,320 --> 00:54:31,800
Speaker 2: properties that you didn't see.

1373
00:54:31,560 --> 00:54:34,440
Speaker 1: They had, having contractors screw you over, take money from you,

1374
00:54:34,560 --> 00:54:38,560
Speaker 1: miss miss allocation of resources, or a contractor says something's

1375
00:54:38,600 --> 00:54:40,600
Speaker 1: not wrong when it is wrong, or all that. A

1376
00:54:40,640 --> 00:54:43,000
Speaker 1: contractor you give a deposit to and they walk away.

1377
00:54:43,040 --> 00:54:45,120
Speaker 1: I'm sure you've had that a bunch of times. Oh yeah,

1378
00:54:45,160 --> 00:54:47,239
Speaker 1: like all those things, I understand. You know, just like

1379
00:54:47,280 --> 00:54:49,440
Speaker 1: you, you're really good at reading people. I can meet a

1380
00:54:49,440 --> 00:54:51,840
Speaker 1: contractor just like you could with all your experience. I go,

1381
00:54:52,000 --> 00:54:54,080
Speaker 1: this guy's going to screw me. Yeah, he's the wrong guy.

1382
00:54:54,400 --> 00:54:55,640
Speaker 1: Some of these brand new.

1383
00:54:55,960 --> 00:54:57,800
Speaker 2: That property I was telling you about an Indianapolis I

1384
00:54:57,800 --> 00:55:01,719
Speaker 2: had to take back. I'll take the responsibility. I didn't

1385
00:55:01,719 --> 00:55:05,360
Speaker 2: manage the construction draws properly. I had a person on

1386
00:55:05,400 --> 00:55:08,960
Speaker 2: the ground managing the construction draws, and we gave out

1387
00:55:09,000 --> 00:55:10,839
Speaker 2: too much money and not enough work was done.

1388
00:55:10,920 --> 00:55:13,520
Speaker 1: Yep, man that was paid a slippery slope to come

1389
00:55:13,560 --> 00:55:16,160
Speaker 1: back from. Yeah, you give that, You're you've incentivized them

1390
00:55:16,160 --> 00:55:19,080
Speaker 1: to not do any work and they'll there's like I'm

1391
00:55:19,120 --> 00:55:22,040
Speaker 1: walking away and what's your recourse in that situation, right,

1392
00:55:22,080 --> 00:55:22,720
Speaker 1: So I took.

1393
00:55:22,560 --> 00:55:24,600
Speaker 2: The property back, but I yeah, but I was out

1394
00:55:24,640 --> 00:55:25,000
Speaker 2: the money.

1395
00:55:25,040 --> 00:55:27,400
Speaker 1: The interesting thing about your analogy with like the Hawaii

1396
00:55:27,560 --> 00:55:30,000
Speaker 1: you know, one hundred foot waves right or thirty foot waves.

1397
00:55:30,320 --> 00:55:32,280
Speaker 1: What I love about that is that, Yeah, the experienced

1398
00:55:32,280 --> 00:55:34,000
Speaker 1: people are out there like they've done the thing. They've

1399
00:55:34,000 --> 00:55:36,520
Speaker 1: got out on the board, they've compounded, compound and compound,

1400
00:55:36,560 --> 00:55:39,040
Speaker 1: and they've gotten better at the thing. Meanwhile, somebody that's

1401
00:55:39,040 --> 00:55:41,719
Speaker 1: brand new walks on that beach and goes, there's no

1402
00:55:41,760 --> 00:55:44,719
Speaker 1: way I can do this thing. However, you can sell

1403
00:55:44,760 --> 00:55:47,719
Speaker 1: the surfboards, you can wax people's boards, you can help

1404
00:55:47,760 --> 00:55:50,000
Speaker 1: sell lunch and sodas and whatever else. There's other ways

1405
00:55:50,000 --> 00:55:51,799
Speaker 1: to make money on that beach than being the person

1406
00:55:51,800 --> 00:55:54,359
Speaker 1: that's surfing the wave. And that's what I'm talking about,

1407
00:55:54,440 --> 00:55:56,560
Speaker 1: is that in order to be the person serving the wave,

1408
00:55:56,560 --> 00:55:58,320
Speaker 1: which is what I'm doing and Ken mcroy's doing, and

1409
00:55:58,400 --> 00:56:01,200
Speaker 1: what you've done your whole career, I started out by

1410
00:56:01,880 --> 00:56:04,200
Speaker 1: just finding the deal and selling it to somebody else

1411
00:56:04,200 --> 00:56:06,000
Speaker 1: that was more equipped to ride that wave than I was,

1412
00:56:06,040 --> 00:56:08,520
Speaker 1: which is managing the asset. When I first started, I

1413
00:56:08,560 --> 00:56:10,400
Speaker 1: did not want to own any of these assets. I

1414
00:56:10,440 --> 00:56:12,440
Speaker 1: was too afraid of it. But there's still ways to

1415
00:56:12,480 --> 00:56:14,839
Speaker 1: make significant money, millions of dollars. There's ways to make

1416
00:56:14,880 --> 00:56:18,640
Speaker 1: millions of dollars without actually having to surf that wave directly. Yeah,

1417
00:56:18,880 --> 00:56:21,839
Speaker 1: the risks are high, though, Like if you look at

1418
00:56:21,960 --> 00:56:23,680
Speaker 1: let's say that the market, let's let's go through like

1419
00:56:23,719 --> 00:56:30,640
Speaker 1: a doomsday situation, market crashes, what do I do. I

1420
00:56:30,680 --> 00:56:32,799
Speaker 1: look at my assets and I go, they're all cash

1421
00:56:32,800 --> 00:56:34,839
Speaker 1: flowing today. Why would they not be cash flowing even

1422
00:56:34,880 --> 00:56:38,600
Speaker 1: if the market's plummet. Well, there's a problem. There's a problem.

1423
00:56:38,640 --> 00:56:41,480
Speaker 1: The problem is when markets plummet, people are out of work.

1424
00:56:41,520 --> 00:56:43,400
Speaker 1: So it's not just the equity in the asset that

1425
00:56:43,440 --> 00:56:45,480
Speaker 1: I may or may not care about. Let's say, let's

1426
00:56:45,480 --> 00:56:47,080
Speaker 1: say I don't care about my equity because I know

1427
00:56:47,239 --> 00:56:49,640
Speaker 1: I always tell people to go. Equity comes, equity goes,

1428
00:56:49,680 --> 00:56:51,480
Speaker 1: but the cash will always flow. Well, that's not always

1429
00:56:51,719 --> 00:56:54,120
Speaker 1: entirely accurate. What happens in two thousand and eight when

1430
00:56:54,160 --> 00:56:57,960
Speaker 1: a lot of people lost their jobs and there the

1431
00:56:58,320 --> 00:57:00,680
Speaker 1: landlords are like, dude, I've got seven of my houses,

1432
00:57:00,760 --> 00:57:03,239
Speaker 1: seven of my ten houses. People aren't making their fricking.

1433
00:57:02,960 --> 00:57:05,800
Speaker 2: It depends I mean here in southern California, rents actually

1434
00:57:05,800 --> 00:57:07,759
Speaker 2: went up, Yeah, because more people.

1435
00:57:07,480 --> 00:57:08,120
Speaker 1: Turn into renters.

1436
00:57:08,200 --> 00:57:10,440
Speaker 2: Now, if you're talking about Vegas or Phoenix where you

1437
00:57:10,520 --> 00:57:12,200
Speaker 2: built go cities, that was a different story.

1438
00:57:12,280 --> 00:57:14,480
Speaker 1: Yeah, we and I was in Phoenix, right, and I

1439
00:57:14,480 --> 00:57:15,960
Speaker 1: was a contractor at the time, So I watched this

1440
00:57:16,400 --> 00:57:18,880
Speaker 1: happened to a lot of my landlord friends is for

1441
00:57:18,960 --> 00:57:21,960
Speaker 1: about six months duration they were struggling to make their payment.

1442
00:57:22,040 --> 00:57:24,440
Speaker 1: So if that happens, I've got six months of reserves, right,

1443
00:57:24,480 --> 00:57:26,800
Speaker 1: We've the cash flow has built up six months of reserves.

1444
00:57:26,840 --> 00:57:28,640
Speaker 1: So I've got six months of reserves on all my assets.

1445
00:57:28,680 --> 00:57:31,720
Speaker 1: Worst case scenario in that regard, I don't want to

1446
00:57:31,760 --> 00:57:33,920
Speaker 1: ever sell the asset anyway, Right, Like what you and

1447
00:57:34,000 --> 00:57:36,160
Speaker 1: I were talking about, Like you bought bitcoin, Are you

1448
00:57:36,160 --> 00:57:37,160
Speaker 1: ever going to sell your bitcoin?

1449
00:57:37,240 --> 00:57:37,640
Speaker 2: Yeah? Never?

1450
00:57:38,000 --> 00:57:40,440
Speaker 1: Why So same thing with my real estate. Would I

1451
00:57:40,480 --> 00:57:42,840
Speaker 1: ever actually sell my real estate? No matter what happens

1452
00:57:42,840 --> 00:57:46,600
Speaker 1: with that? How if bitcoin goes down to fifteen thousand

1453
00:57:46,640 --> 00:57:47,920
Speaker 1: dollars tomorrow, are you going to sell it?

1454
00:57:47,840 --> 00:57:49,880
Speaker 2: It was just at fifteen now And the same was

1455
00:57:49,920 --> 00:57:51,120
Speaker 2: with my real estate. I was showing you the house

1456
00:57:51,120 --> 00:57:53,280
Speaker 2: I'm building on the beach in freaking months ago right now,

1457
00:57:53,360 --> 00:57:55,240
Speaker 2: Like my goal is my grandkids are going to be

1458
00:57:55,240 --> 00:57:57,560
Speaker 2: playing at that house like my great grandkids. I'll be gone,

1459
00:57:57,560 --> 00:57:59,720
Speaker 2: and I still want my family to be enjoying that house. Right,

1460
00:57:59,800 --> 00:58:03,160
Speaker 2: So that's the idea on that. Yeah, I guess, I

1461
00:58:03,160 --> 00:58:06,800
Speaker 2: guess the last question or a couple more questions, But

1462
00:58:06,840 --> 00:58:09,280
Speaker 2: in regards to that specifically, I think about my real

1463
00:58:09,400 --> 00:58:12,320
Speaker 2: estate in terms of supplying demand, right, prices always supplying demand,

1464
00:58:12,520 --> 00:58:15,640
Speaker 2: and so like you think about like trends of migration trends,

1465
00:58:15,640 --> 00:58:18,360
Speaker 2: if you will, right, So, like Florida, the Sun Belt

1466
00:58:18,360 --> 00:58:19,600
Speaker 2: states have North.

1467
00:58:19,360 --> 00:58:22,840
Speaker 1: Carolina, Florida, Texas, Atlanta, Georgia, Like you're crazy.

1468
00:58:22,480 --> 00:58:24,800
Speaker 2: They continue to do very well. I mean places like

1469
00:58:24,840 --> 00:58:27,600
Speaker 2: Oklahoma or they're building Amazon facilities, right, But then you

1470
00:58:27,680 --> 00:58:30,160
Speaker 2: have places in the rest Belt or the Pacific Northwest

1471
00:58:30,160 --> 00:58:31,080
Speaker 2: that are.

1472
00:58:31,000 --> 00:58:34,360
Speaker 1: Like Appalachia and people are just leaving. Yeah, So do

1473
00:58:34,440 --> 00:58:35,280
Speaker 1: you think about it like that?

1474
00:58:35,320 --> 00:58:37,160
Speaker 2: I mean, are you pretty strategic in which market share?

1475
00:58:37,280 --> 00:58:41,040
Speaker 1: Strategic? I'm I don't know. I'm I had this whole

1476
00:58:41,040 --> 00:58:43,760
Speaker 1: thing this last week mark where I'm like researching what's

1477
00:58:43,800 --> 00:58:47,040
Speaker 1: going on with the migration patterns, not just the migration

1478
00:58:47,080 --> 00:58:48,800
Speaker 1: pattern like I'll go in the Census Bureau and you'll

1479
00:58:48,800 --> 00:58:51,240
Speaker 1: look where all the zip codes. You'll see if there's

1480
00:58:51,240 --> 00:58:53,360
Speaker 1: a point eight percent growth year over year, I will

1481
00:58:53,360 --> 00:58:55,200
Speaker 1: go and invest in those areas. But they also have

1482
00:58:55,240 --> 00:58:58,160
Speaker 1: to be republic Republican states. Why because I care about

1483
00:58:58,240 --> 00:59:01,920
Speaker 1: landlord tenant laws. Yeah, significantly. Like one of the reasons

1484
00:59:01,920 --> 00:59:04,120
Speaker 1: why you won't invest in LA or I won't invest

1485
00:59:04,160 --> 00:59:07,640
Speaker 1: in LA is because they're very tenant friendly. And basically,

1486
00:59:07,680 --> 00:59:10,120
Speaker 1: if I own a sandwich shop in LA and somebody

1487
00:59:10,160 --> 00:59:12,760
Speaker 1: walks in orders a sandwich, they get to check out

1488
00:59:13,120 --> 00:59:14,840
Speaker 1: and then they just grab the sandwich and walk out,

1489
00:59:14,840 --> 00:59:18,160
Speaker 1: that would be illegal, right not here? Not here, Yeah,

1490
00:59:18,240 --> 00:59:20,080
Speaker 1: it's okay here. It's okay for somebody to live in

1491
00:59:20,120 --> 00:59:22,160
Speaker 1: your property that you own and that's your product that

1492
00:59:22,200 --> 00:59:24,080
Speaker 1: you're selling and for them to just rob and steal

1493
00:59:24,080 --> 00:59:25,840
Speaker 1: from you. So I'm not okay investing in those states.

1494
00:59:25,840 --> 00:59:31,360
Speaker 1: It's very specific areas like Illinois trash, Washington's trash, Oregon's trash, Denver,

1495
00:59:31,400 --> 00:59:34,360
Speaker 1: Colorado's trash, LA's trash, and what I mean trash. I

1496
00:59:34,400 --> 00:59:37,240
Speaker 1: love these states like I walk here and where you

1497
00:59:37,280 --> 00:59:40,520
Speaker 1: live it's paradise. But from a landlord perspective, there's no

1498
00:59:40,520 --> 00:59:45,520
Speaker 1: protection protecting a standpoint, right, so I avoid those areas. Also,

1499
00:59:45,560 --> 00:59:47,240
Speaker 1: I look at the Census Bureau, and the Census Bureau

1500
00:59:47,240 --> 00:59:49,120
Speaker 1: shows me where people are moving and what's happening. And

1501
00:59:49,120 --> 00:59:52,200
Speaker 1: they also I look at permit data, permit data, like

1502
00:59:52,200 --> 00:59:53,880
Speaker 1: how do you know that the Amazon is building a

1503
00:59:53,920 --> 00:59:56,760
Speaker 1: thing in this place or that thing? Permit data people

1504
00:59:56,800 --> 00:59:59,960
Speaker 1: follow that you pull a permit three years before you

1505
01:00:00,040 --> 01:00:02,080
Speaker 1: actually start building, and so you know the plans that

1506
01:00:02,080 --> 01:00:04,960
Speaker 1: are happening in that area. Like Fayetteville, North Carolina really

1507
01:00:05,200 --> 01:00:07,200
Speaker 1: slept on market for people that are trying to work

1508
01:00:07,240 --> 01:00:12,400
Speaker 1: in Fayeteville. Amazing state, smaller town kind of by Winston, Salem.

1509
01:00:12,520 --> 01:00:14,880
Speaker 1: Charlotte kind of wedged in between there. They've got a

1510
01:00:15,160 --> 01:00:18,400
Speaker 1: military base and Amazon is now building something there. I

1511
01:00:18,400 --> 01:00:20,960
Speaker 1: saw that three years ago, so I started long term demand, right.

1512
01:00:20,960 --> 01:00:22,720
Speaker 1: So I started buying three years ago, and now my

1513
01:00:22,800 --> 01:00:25,600
Speaker 1: rents have doubled, right. So there's all sorts of really

1514
01:00:25,600 --> 01:00:27,440
Speaker 1: smart things that you can do to do all that

1515
01:00:27,480 --> 01:00:31,720
Speaker 1: kind of stuff. But I'm now rethinking not deploying capital

1516
01:00:31,760 --> 01:00:35,120
Speaker 1: into states like California or Denver. Why Because I look

1517
01:00:35,160 --> 01:00:38,919
Speaker 1: at what's happening with this immigration situation. Ten thousand people

1518
01:00:38,960 --> 01:00:41,240
Speaker 1: coming into our country. I can't stop that. You can't

1519
01:00:41,280 --> 01:00:43,880
Speaker 1: stop that. No, none of your friends or my friends

1520
01:00:43,880 --> 01:00:46,720
Speaker 1: are powerful enough to stop any of this bullshit. Nope.

1521
01:00:47,320 --> 01:00:50,080
Speaker 1: I agree. I love immigration. I think we're all immigrants.

1522
01:00:50,200 --> 01:00:52,600
Speaker 1: I love that. But the bullshit is they're just bringing

1523
01:00:52,600 --> 01:00:54,600
Speaker 1: people in. We don't have anywhere for them.

1524
01:00:54,280 --> 01:00:56,480
Speaker 2: Pro immigration to pro legal immigration.

1525
01:00:56,640 --> 01:00:59,160
Speaker 1: But where are they going to stay? That's the bullshit

1526
01:00:59,160 --> 01:01:00,920
Speaker 1: I'm talking about. You don't even know where they're going

1527
01:01:00,960 --> 01:01:02,880
Speaker 1: to go. So I look at that, I go. The

1528
01:01:02,920 --> 01:01:05,680
Speaker 1: government is going to have to print money, and they're

1529
01:01:05,680 --> 01:01:08,320
Speaker 1: going to have to reward investors to divide up their

1530
01:01:08,320 --> 01:01:11,440
Speaker 1: houses or do something. That's the only solution.

1531
01:01:11,720 --> 01:01:11,919
Speaker 2: Yeah.

1532
01:01:12,120 --> 01:01:15,280
Speaker 1: Right. They're displacing school kids and elementaries right now to

1533
01:01:15,360 --> 01:01:17,840
Speaker 1: find places for these people live. I don't know if

1534
01:01:17,840 --> 01:01:20,760
Speaker 1: you saw this, but they New York City just deployed

1535
01:01:20,760 --> 01:01:22,960
Speaker 1: fifty three million dollars just giving these people.

1536
01:01:22,760 --> 01:01:27,520
Speaker 2: Ten carts, bro ten dollars. We got twelve hundred dollars

1537
01:01:27,560 --> 01:01:28,959
Speaker 2: in stimmy. Well, I didn't get it, but some people

1538
01:01:28,960 --> 01:01:29,560
Speaker 2: got twelve hundred.

1539
01:01:29,560 --> 01:01:32,600
Speaker 1: No, they're ten thousand, thousand. And then State of California

1540
01:01:32,760 --> 01:01:35,640
Speaker 1: they just put I think it was like three million

1541
01:01:35,640 --> 01:01:37,960
Speaker 1: people in the state of California that are all legal

1542
01:01:38,000 --> 01:01:41,080
Speaker 1: immigrants are now on your guys's Cali Care or whatever

1543
01:01:41,120 --> 01:01:45,400
Speaker 1: it's called. Your medicare all approved. Meanwhile, there's somebody that's

1544
01:01:45,440 --> 01:01:47,919
Speaker 1: making sixty thousand dollars a year a year here that's

1545
01:01:47,960 --> 01:01:50,400
Speaker 1: been here their whole life, and they can't get approved

1546
01:01:50,400 --> 01:01:53,640
Speaker 1: for government assistance. So meanwhile, my family of.

1547
01:01:53,720 --> 01:01:55,919
Speaker 2: Four is twenty eight thousand dollars a year.

1548
01:01:56,480 --> 01:01:59,640
Speaker 1: It's ridiculous. And look, we can complain about all that,

1549
01:01:59,680 --> 01:02:01,560
Speaker 1: but I'm what I look at, is I go where

1550
01:02:01,560 --> 01:02:04,200
Speaker 1: can I make money? Could I make a ton of

1551
01:02:04,200 --> 01:02:07,280
Speaker 1: money by going into San Diego or LA and going

1552
01:02:07,320 --> 01:02:09,280
Speaker 1: and buying a piece of dirt, throwing tiny homes on it,

1553
01:02:09,320 --> 01:02:13,160
Speaker 1: and letting the government subsidize those payments for illegal immigrants.

1554
01:02:13,600 --> 01:02:15,560
Speaker 1: The government's already willing to do it.

1555
01:02:15,560 --> 01:02:18,720
Speaker 2: Well, and California's big plan of making more affordable housing

1556
01:02:18,840 --> 01:02:20,600
Speaker 2: is allowing you to build more homes on your property.

1557
01:02:21,280 --> 01:02:23,320
Speaker 1: That's the whole idea. Well, all the ADUs that you

1558
01:02:23,360 --> 01:02:26,000
Speaker 1: guys are seeing, like the ADU situation in your guys

1559
01:02:26,040 --> 01:02:28,440
Speaker 1: state is crazy. Right now, You're going to double the

1560
01:02:28,520 --> 01:02:30,600
Speaker 1: amount of dwelling units here in the next five to

1561
01:02:30,640 --> 01:02:33,320
Speaker 1: seven years. Yea, and you'll still have a problem. Yeah,

1562
01:02:33,360 --> 01:02:34,880
Speaker 1: you'll still have a problem. I think most of the

1563
01:02:34,880 --> 01:02:36,920
Speaker 1: problem will be solved. But I look at that and go,

1564
01:02:37,600 --> 01:02:39,480
Speaker 1: I know that I don't love landlord laws, but if

1565
01:02:39,480 --> 01:02:42,040
Speaker 1: they're going to do government programs where they guarantee the rents,

1566
01:02:42,120 --> 01:02:44,080
Speaker 1: I'm cool with that. Yeah, And I think that that's

1567
01:02:44,120 --> 01:02:46,200
Speaker 1: what's going to happen. I think that those main states

1568
01:02:46,240 --> 01:02:48,080
Speaker 1: you've got where like Texas. Don't know if you saw

1569
01:02:48,080 --> 01:02:52,240
Speaker 1: this centator Abbot is busting people away from Texas, of course,

1570
01:02:52,440 --> 01:02:54,920
Speaker 1: and he's going to all these other liberal areas, and

1571
01:02:55,160 --> 01:02:57,040
Speaker 1: I'm like, those are the areas where I think the

1572
01:02:57,080 --> 01:02:59,400
Speaker 1: government's going to just subsidize and give investors money, like

1573
01:02:59,400 --> 01:03:03,320
Speaker 1: will guarantee you this rent payment for these illegal immigrants.

1574
01:03:03,560 --> 01:03:04,960
Speaker 1: I think that there's something to look at there. And

1575
01:03:05,000 --> 01:03:06,840
Speaker 1: I think that my team's going to start deploying some

1576
01:03:06,920 --> 01:03:07,600
Speaker 1: time and energy.

1577
01:03:07,600 --> 01:03:10,240
Speaker 2: I mean Section eight in Detroit, it's been a good

1578
01:03:10,280 --> 01:03:13,400
Speaker 2: investment for two decades now, exactly. I put a quote

1579
01:03:13,400 --> 01:03:15,520
Speaker 2: on my Instagram, I think on Friday, and I said,

1580
01:03:15,600 --> 01:03:22,080
Speaker 2: unsuccessful people think the game is rigged against them. Successful

1581
01:03:22,120 --> 01:03:24,720
Speaker 2: people realize the game is rigged and just learn how

1582
01:03:24,720 --> 01:03:25,080
Speaker 2: to play it.

1583
01:03:25,280 --> 01:03:27,120
Speaker 1: Yeah, I was arguing on on my idea. I love

1584
01:03:27,160 --> 01:03:29,560
Speaker 1: that I'm arguing on my DMS this morning. Somebody's like,

1585
01:03:29,600 --> 01:03:32,240
Speaker 1: you brought up an immigration thing, and I'm like, you're

1586
01:03:32,280 --> 01:03:35,040
Speaker 1: not going to stop what's happening. No matter how like

1587
01:03:35,240 --> 01:03:38,560
Speaker 1: Diehard you are about pro or not pro immigration, the

1588
01:03:38,600 --> 01:03:40,560
Speaker 1: Government's going to continue to do it. The Government's going

1589
01:03:40,600 --> 01:03:42,400
Speaker 1: to do I don't know anybody in my circle of

1590
01:03:42,440 --> 01:03:45,560
Speaker 1: influence that can tell the waves how high to go

1591
01:03:45,720 --> 01:03:48,320
Speaker 1: or when to crash, but I do know friends that

1592
01:03:48,360 --> 01:03:49,640
Speaker 1: are like, I'm going to figure out how to surf

1593
01:03:49,680 --> 01:03:52,040
Speaker 1: that wave that I have no control over. Yeah, and

1594
01:03:52,040 --> 01:03:53,840
Speaker 1: that's essentially what you and I do as business people,

1595
01:03:53,880 --> 01:03:55,800
Speaker 1: of like how do I ride the wave that is

1596
01:03:55,840 --> 01:03:57,160
Speaker 1: being created by somebody else?

1597
01:03:57,240 --> 01:04:03,040
Speaker 2: Yeah? You know, yeah, all right, final thoughts any piece

1598
01:04:03,080 --> 01:04:05,320
Speaker 2: of advice. I mean, you've got the community that they

1599
01:04:05,320 --> 01:04:07,080
Speaker 2: can get into. You've laid out all the different ways

1600
01:04:07,120 --> 01:04:07,880
Speaker 2: we can get into it.

1601
01:04:08,320 --> 01:04:11,160
Speaker 1: You know, I have this thing where, you know, we

1602
01:04:11,200 --> 01:04:13,160
Speaker 1: brought up Carlton Sheets, We brought up like all these

1603
01:04:13,200 --> 01:04:16,560
Speaker 1: gangsters from the old days, just badasses in the business,

1604
01:04:16,600 --> 01:04:18,800
Speaker 1: and you're friends with a lot of the existing just

1605
01:04:18,840 --> 01:04:20,760
Speaker 1: badasses like Ken Macro has been in the business twenty

1606
01:04:20,760 --> 01:04:22,920
Speaker 1: two years, all this kind of stuff. We've had these conversations.

1607
01:04:23,840 --> 01:04:27,160
Speaker 1: It's really cool when we talk about deals that we

1608
01:04:27,200 --> 01:04:29,440
Speaker 1: can do. But I when I'm talking to an audience,

1609
01:04:29,480 --> 01:04:32,080
Speaker 1: I'm stressed out thinking about there's a single mom watching us,

1610
01:04:32,120 --> 01:04:34,240
Speaker 1: there's a you know, a person that's at their nine

1611
01:04:34,280 --> 01:04:35,800
Speaker 1: to five job. Is like, I need to make a change.

1612
01:04:35,800 --> 01:04:37,560
Speaker 1: This all sounds great, but how do I make a change.

1613
01:04:37,960 --> 01:04:40,160
Speaker 1: What I've done multiple times on my YouTube channel is

1614
01:04:40,200 --> 01:04:43,160
Speaker 1: I've taken somebody who's never done a deal before and

1615
01:04:43,520 --> 01:04:45,240
Speaker 1: done a deal with them in less than twelve hours

1616
01:04:45,240 --> 01:04:46,840
Speaker 1: and showing them. Let me show you how to make

1617
01:04:46,880 --> 01:04:50,280
Speaker 1: twenty grant today, not like next year. Not hey, let's

1618
01:04:50,360 --> 01:04:51,880
Speaker 1: learn a bunch of stuff for a year to then

1619
01:04:52,080 --> 01:04:54,120
Speaker 1: learn how to do twenty Just go to my YouTube channel.

1620
01:04:54,120 --> 01:04:56,040
Speaker 1: Forget about my community, forget about any of that stuff.

1621
01:04:56,160 --> 01:04:57,800
Speaker 1: Go to my YouTube channel and go watch the times

1622
01:04:57,840 --> 01:04:59,600
Speaker 1: where I just grab somebody by the hand, has no

1623
01:04:59,640 --> 01:05:03,440
Speaker 1: experien Robert g Allen did this and then in nineteen

1624
01:05:03,480 --> 01:05:07,080
Speaker 1: eighty he went to Saint Louis, took five people out

1625
01:05:07,120 --> 01:05:09,040
Speaker 1: of the unemployment line and turned them into full time

1626
01:05:09,080 --> 01:05:11,480
Speaker 1: real esty investors in like ninety days, and so that's

1627
01:05:11,480 --> 01:05:13,400
Speaker 1: always been my inspiration to go. Who cares that I

1628
01:05:13,400 --> 01:05:16,920
Speaker 1: can do deals. I'm a talker, I'm charismatic. You can

1629
01:05:16,920 --> 01:05:18,520
Speaker 1: put me in any situation. I can figure out how

1630
01:05:18,560 --> 01:05:21,479
Speaker 1: to make money. A true test is can I show

1631
01:05:21,520 --> 01:05:23,240
Speaker 1: somebody else how to make money that has none of

1632
01:05:23,320 --> 01:05:25,720
Speaker 1: those traits? And the answer is yes, So go check

1633
01:05:25,760 --> 01:05:27,440
Speaker 1: out my YouTube channel. We do that stuff all the

1634
01:05:27,440 --> 01:05:29,320
Speaker 1: time for people and trying to change people's.

1635
01:05:29,040 --> 01:05:31,880
Speaker 2: Lives if you're motivated. One of my favorite personal development

1636
01:05:31,880 --> 01:05:34,480
Speaker 2: gurus Bryan Chasy, I've gone through so many of his courses.

1637
01:05:34,480 --> 01:05:36,560
Speaker 2: He wrote a book, The Psychology of Selling, and my

1638
01:05:36,600 --> 01:05:38,080
Speaker 2: wife and I we still go back and laugh at

1639
01:05:38,120 --> 01:05:41,200
Speaker 2: this line he said, if you have no motivation, I'm sorry,

1640
01:05:41,280 --> 01:05:45,120
Speaker 2: there's no hope for you. It just blunt because you

1641
01:05:45,160 --> 01:05:47,280
Speaker 2: can learn anything, you can do anything if you have motivation.

1642
01:05:47,520 --> 01:05:49,800
Speaker 2: So certainly, if you're a go getter, you can get

1643
01:05:49,800 --> 01:05:53,120
Speaker 2: in and make some money. Man, Pace, what a masterclass

1644
01:05:53,160 --> 01:05:55,400
Speaker 2: I have been. Like I said, I've been watching your

1645
01:05:55,400 --> 01:05:58,320
Speaker 2: stuff for a while, talking about getting into it, maybe

1646
01:05:58,360 --> 01:05:59,160
Speaker 2: hiring some people.

1647
01:05:59,360 --> 01:05:59,920
Speaker 1: You should.

1648
01:06:00,040 --> 01:06:01,480
Speaker 2: So what an honor to be able to sit down

1649
01:06:01,680 --> 01:06:02,800
Speaker 2: and pick your rain about this stuff.

1650
01:06:02,800 --> 01:06:03,520
Speaker 1: So I appreciate it.

1651
01:06:03,560 --> 01:06:03,680
Speaker 2: Bro.

1652
01:06:03,800 --> 01:06:05,960
Speaker 1: Hanging out with you has been a treat, and you're

1653
01:06:05,960 --> 01:06:09,080
Speaker 1: a legend. And all of our friends, the Cody Sanchez

1654
01:06:09,120 --> 01:06:10,280
Speaker 1: of the world and all these people like get to

1655
01:06:10,320 --> 01:06:12,560
Speaker 1: hang out with on a daily basis. They all just

1656
01:06:12,760 --> 01:06:14,320
Speaker 1: rant and rave about how cool you are, and so

1657
01:06:14,360 --> 01:06:15,800
Speaker 1: it's cool to hang out with you today. Yeah.

1658
01:06:15,840 --> 01:06:19,560
Speaker 2: Thanks, And you're changing lives. It's a skill everybody can learn.

1659
01:06:19,560 --> 01:06:20,200
Speaker 2: It's why I started.

1660
01:06:20,320 --> 01:06:21,880
Speaker 1: I didn't have any formal degree. I just got right

1661
01:06:21,880 --> 01:06:23,720
Speaker 1: into really nineteen years old. I know what I was

1662
01:06:23,760 --> 01:06:26,600
Speaker 1: doing Compton, California, getting guns pulled on you. It was crazy.

1663
01:06:26,600 --> 01:06:29,000
Speaker 1: If Mark can do it, guys, he's unemployable. You can

1664
01:06:29,000 --> 01:06:29,320
Speaker 1: do it.

1665
01:06:29,240 --> 01:06:30,640
Speaker 2: Too, That's right, I faced.

1666
01:06:30,640 --> 01:06:31,400
Speaker 1: Thanks. Thanks,