1 00:00:03,520 --> 00:00:06,000 Speaker 1: This was not charity by any stretch, right, I mean 2 00:00:06,200 --> 00:00:11,000 Speaker 1: I increased my income in creating this opportunity, which really 3 00:00:11,119 --> 00:00:14,360 Speaker 1: just makes you feel like, why is this not a thing? 4 00:00:14,720 --> 00:00:16,840 Speaker 1: Why is everyone not doing this? 5 00:00:16,760 --> 00:00:19,520 Speaker 2: This would be a win win for literally. 6 00:00:19,120 --> 00:00:23,880 Speaker 1: Everyone, exactly. It's much cheaper, more accessible for Tiffany or 7 00:00:23,920 --> 00:00:27,400 Speaker 1: anyone in her similar situation, it's more profitable for the owner. 8 00:00:28,240 --> 00:00:31,600 Speaker 1: Everyone should be doing this, And I've been at this 9 00:00:31,640 --> 00:00:36,919 Speaker 1: point in the affordable housing space for ten years and 10 00:00:36,960 --> 00:00:38,440 Speaker 1: no one's even talking about it. 11 00:00:42,520 --> 00:00:45,519 Speaker 2: Welcome to an army of normal folks. I'm Bill Courtney. 12 00:00:45,960 --> 00:00:48,760 Speaker 2: I'm a normal guy. I'm a husband, I'm a father, 13 00:00:48,960 --> 00:00:52,520 Speaker 2: I'm an entrepreneur, and I'm a football coach an inner 14 00:00:52,560 --> 00:00:55,520 Speaker 2: city Memphis. And the last part somehow led to an 15 00:00:55,560 --> 00:00:59,760 Speaker 2: oscar for one of my teams. That movie is called Undefeated. 16 00:01:00,720 --> 00:01:03,480 Speaker 2: I believe our country's problems are never going to be 17 00:01:03,560 --> 00:01:06,760 Speaker 2: solved by a bunch of fancy people and nice suits 18 00:01:06,840 --> 00:01:10,920 Speaker 2: using words that nobody ever really uses on CNN and Fox, 19 00:01:11,000 --> 00:01:15,840 Speaker 2: but rather by an army of normal folks, US just 20 00:01:15,880 --> 00:01:20,440 Speaker 2: you and me deciding hey, maybe I can help. That's 21 00:01:20,480 --> 00:01:24,280 Speaker 2: what Atticus LeBlanc, the voice you just heard, has done. 22 00:01:24,400 --> 00:01:28,760 Speaker 2: Atticus is the founder of pad split, the largest co 23 00:01:28,920 --> 00:01:34,759 Speaker 2: living marketplace in America. It's like the Airbnb for room rentals, 24 00:01:35,160 --> 00:01:38,000 Speaker 2: which both saves renders an average of three hundred and 25 00:01:38,000 --> 00:01:41,680 Speaker 2: sixty six bucks a month, and makes property owners two 26 00:01:41,720 --> 00:01:45,080 Speaker 2: times as much money. It's a win win. It's a 27 00:01:45,080 --> 00:01:49,200 Speaker 2: solution to our affordable housing crisis. That's hiding right and 28 00:01:49,320 --> 00:01:52,760 Speaker 2: plain sight, and something that tons of Army members could 29 00:01:52,800 --> 00:01:55,720 Speaker 2: be a part of. I cannot wait for you to 30 00:01:55,760 --> 00:02:00,000 Speaker 2: meet Atticus right after these brief messages from our general sponsors. 31 00:02:12,680 --> 00:02:15,800 Speaker 2: Atticus LeBlanc, welcome to Memphis. 32 00:02:15,919 --> 00:02:17,280 Speaker 1: Thank you very much, appreciate it. 33 00:02:17,440 --> 00:02:19,560 Speaker 2: We're your parents fans of Takila Mockingbird. 34 00:02:20,560 --> 00:02:24,680 Speaker 1: You guessed correctly, Yes, they were, both were big fans. 35 00:02:25,680 --> 00:02:27,760 Speaker 1: There are a number of stories about how I got 36 00:02:27,800 --> 00:02:30,280 Speaker 1: the name. The one I choose to go with is 37 00:02:30,919 --> 00:02:33,360 Speaker 1: that they wanted to give me someone to live up to. 38 00:02:34,040 --> 00:02:38,680 Speaker 2: Very very cool. Your real story, for our purposes picks 39 00:02:38,760 --> 00:02:42,960 Speaker 2: up in two thousand and two. Really, I think you 40 00:02:43,000 --> 00:02:46,519 Speaker 2: moved to Atlanta and you're making thirty thousand dollars a 41 00:02:46,639 --> 00:02:52,200 Speaker 2: year and you've rented a room is kind of how 42 00:02:52,560 --> 00:02:55,359 Speaker 2: the story starts. As far as I know, so just 43 00:02:55,440 --> 00:02:57,160 Speaker 2: kind of pick us up there and tell me what 44 00:02:57,200 --> 00:02:58,079 Speaker 2: was going on in your world. 45 00:02:58,160 --> 00:03:00,160 Speaker 1: Yeah. Well the first thing I followed a girl me 46 00:03:00,200 --> 00:03:05,520 Speaker 1: to Atlanta. That's pretty important story. Yeah. So, uh, she 47 00:03:05,960 --> 00:03:08,440 Speaker 1: was she wanted to be in public health and work 48 00:03:08,480 --> 00:03:13,320 Speaker 1: in international HIV prevention. So Atlanta, home to CDC, was 49 00:03:13,200 --> 00:03:14,600 Speaker 1: it was a great place for that. So she came 50 00:03:14,639 --> 00:03:16,760 Speaker 1: to get her her master's in public health here. I 51 00:03:16,800 --> 00:03:19,240 Speaker 1: followed her down here because Atlanta, in Atlanta. 52 00:03:18,880 --> 00:03:22,000 Speaker 2: You're saying here here, that's true, that's right. 53 00:03:21,919 --> 00:03:23,480 Speaker 1: That's true. I did just I did, just get off 54 00:03:23,520 --> 00:03:27,680 Speaker 1: the plane. So so I followed her here. I wanted 55 00:03:27,680 --> 00:03:30,400 Speaker 1: to do real estate somewhere in the South and Atlanta. 56 00:03:30,480 --> 00:03:32,760 Speaker 2: Wow, real estate was that something you did? You study 57 00:03:32,800 --> 00:03:33,280 Speaker 2: real estate? 58 00:03:33,280 --> 00:03:35,520 Speaker 1: I did? I did? I So I kind of fell 59 00:03:35,560 --> 00:03:38,119 Speaker 1: into it. In college. I had no idea. I thought 60 00:03:38,120 --> 00:03:39,640 Speaker 1: I was going to be an attorney like my mom 61 00:03:39,760 --> 00:03:43,160 Speaker 1: and my namesake. So I was going to be an 62 00:03:43,160 --> 00:03:45,440 Speaker 1: English major and be an attorney. And then took a 63 00:03:45,480 --> 00:03:47,640 Speaker 1: class that was kind of role playing for real middle 64 00:03:47,720 --> 00:03:50,000 Speaker 1: names not Finch is no, it's it's Bryant. 65 00:03:50,560 --> 00:03:53,080 Speaker 2: Go ahead, but ID ask. 66 00:03:53,200 --> 00:03:56,680 Speaker 1: The So I just got a taste of what the 67 00:03:56,720 --> 00:03:59,800 Speaker 1: life of someone in real estate was like or a developer, 68 00:03:59,840 --> 00:04:02,119 Speaker 1: and just how you could kind of take something from 69 00:04:02,120 --> 00:04:04,760 Speaker 1: concept to completion, and just absolutely fell in love. So 70 00:04:06,160 --> 00:04:08,840 Speaker 1: I came down here not knowing anyone other than my 71 00:04:08,840 --> 00:04:11,520 Speaker 1: girlfriend at the time, fortunately now my wife. I followed 72 00:04:11,560 --> 00:04:17,560 Speaker 1: the right girl perfect and just started looking for Okay, well, 73 00:04:17,680 --> 00:04:19,960 Speaker 1: now what do I how do I actually carve out 74 00:04:19,960 --> 00:04:24,559 Speaker 1: a career in this space? Not knowing anyone took a job. 75 00:04:24,920 --> 00:04:27,240 Speaker 2: So you literally showing up in Atlanta in two thousand 76 00:04:27,279 --> 00:04:31,560 Speaker 2: and two dreaming of real estate making not much money. 77 00:04:31,640 --> 00:04:34,080 Speaker 1: Yeah, it was. It was the equivalent of ten bucks 78 00:04:34,120 --> 00:04:37,240 Speaker 1: an hour. I was working really long hours. It was 79 00:04:37,279 --> 00:04:41,000 Speaker 1: a it was like a boutique, little consulting firm, but 80 00:04:41,240 --> 00:04:42,839 Speaker 1: basically I was a guy in a cube with my 81 00:04:42,880 --> 00:04:45,360 Speaker 1: hands on the keyboard and Excel spreadshoot in front of 82 00:04:45,400 --> 00:04:48,240 Speaker 1: me for twelve hours day. 83 00:04:48,960 --> 00:04:49,320 Speaker 2: Fun. 84 00:04:49,520 --> 00:04:52,120 Speaker 1: Yeah, yeah, it was a blast. But you know, I 85 00:04:52,160 --> 00:04:54,880 Speaker 1: didn't have any financial background, so anyone I talked to said, oh, well, 86 00:04:54,920 --> 00:04:58,440 Speaker 1: you really need to understand the financial piece of the business. 87 00:04:58,880 --> 00:05:01,359 Speaker 1: And so that's where I started and lasted six months 88 00:05:01,360 --> 00:05:04,599 Speaker 1: before I realized I cannot sit in this cubicle any 89 00:05:04,640 --> 00:05:08,000 Speaker 1: longer and I have to get out there and just 90 00:05:08,200 --> 00:05:13,479 Speaker 1: figure out another way. So then I got the glamorous 91 00:05:13,600 --> 00:05:17,960 Speaker 1: job of working for racetrack gas convenience stores. As my 92 00:05:18,720 --> 00:05:20,360 Speaker 1: younger brother used to tease, you went to the Ivy 93 00:05:20,440 --> 00:05:24,440 Speaker 1: League so you can go pump gas, which is which 94 00:05:24,480 --> 00:05:26,960 Speaker 1: is only partially true. I was. I was working in 95 00:05:26,960 --> 00:05:31,120 Speaker 1: the real estate division for them, but it ended up 96 00:05:31,160 --> 00:05:35,400 Speaker 1: being a really really interesting role. I knew it wasn't 97 00:05:35,400 --> 00:05:38,000 Speaker 1: anything that I wanted to do long term, but I 98 00:05:38,080 --> 00:05:39,479 Speaker 1: knew that I wanted to get out of the cube 99 00:05:39,880 --> 00:05:43,440 Speaker 1: and this was a great venue for that. And we 100 00:05:43,440 --> 00:05:45,760 Speaker 1: were interacting on a weekly basis with the CEO of 101 00:05:45,760 --> 00:05:48,480 Speaker 1: the company, and of course they were growing very rapidly 102 00:05:50,480 --> 00:05:53,360 Speaker 1: so and it was an opportunity to just meet tons 103 00:05:53,360 --> 00:05:56,160 Speaker 1: of people all around the Southeast. I was usually engaging 104 00:05:56,200 --> 00:05:58,920 Speaker 1: with folks trying to convince them to sell their property 105 00:05:59,080 --> 00:06:04,920 Speaker 1: for a racetrack station, which could have been an office 106 00:06:04,960 --> 00:06:09,120 Speaker 1: owner or literally like a farmer, sometimes next to one another. 107 00:06:09,200 --> 00:06:12,480 Speaker 1: So it was it was super interesting and I really 108 00:06:12,640 --> 00:06:16,560 Speaker 1: just I think I became more extroverted and just much 109 00:06:16,600 --> 00:06:20,040 Speaker 1: more comfortable talking to anyone from any walk of life 110 00:06:20,120 --> 00:06:21,320 Speaker 1: in that vetotle. 111 00:06:21,040 --> 00:06:23,440 Speaker 2: Wouldn't be a requisite for a job like that for sure. 112 00:06:23,560 --> 00:06:29,760 Speaker 1: Yeah, yeah, no doubt. And yeah it was only two 113 00:06:29,760 --> 00:06:32,440 Speaker 1: and a half years in when they had given me 114 00:06:32,480 --> 00:06:35,760 Speaker 1: a non compete agreement. I had actually written some site 115 00:06:35,800 --> 00:06:39,920 Speaker 1: selection criteria for how I thought they should be picking 116 00:06:40,040 --> 00:06:44,560 Speaker 1: locations based on the performance data of stores that had 117 00:06:44,600 --> 00:06:46,880 Speaker 1: been operating for a long time. And they liked it. 118 00:06:46,880 --> 00:06:49,840 Speaker 1: They liked a lot. But that ended in a non 119 00:06:49,880 --> 00:06:52,520 Speaker 1: compete agreement that said, oh, here take this, you know, 120 00:06:53,279 --> 00:06:53,560 Speaker 1: with some. 121 00:06:53,520 --> 00:06:57,000 Speaker 2: Really good stuff, so we're not sure we want you 122 00:06:57,040 --> 00:06:59,800 Speaker 2: to be around here anymore and start competing with us. 123 00:07:00,040 --> 00:07:03,479 Speaker 1: Exactly exactly that happened. It does, it does, And I 124 00:07:03,480 --> 00:07:06,200 Speaker 1: mean I didn't. I didn't fault them for it, but 125 00:07:06,760 --> 00:07:10,840 Speaker 1: maybe in my naivete as a as a young professional, 126 00:07:10,920 --> 00:07:13,280 Speaker 1: I told my boss at the time I saw a 127 00:07:13,360 --> 00:07:14,880 Speaker 1: draft of an on computer agreement, was like, oh, I 128 00:07:14,880 --> 00:07:18,600 Speaker 1: would never sign that. With that, I pretty much sealed 129 00:07:18,600 --> 00:07:19,040 Speaker 1: my fate. 130 00:07:19,120 --> 00:07:26,160 Speaker 2: I think, so two thousand and five, then, if I'm 131 00:07:26,200 --> 00:07:29,240 Speaker 2: doing the math right, yep, you got out of cubicle, 132 00:07:29,480 --> 00:07:34,240 Speaker 2: you actually learned some applied experience and negotiating for land 133 00:07:34,360 --> 00:07:36,960 Speaker 2: and real estate deals and kind of got to see 134 00:07:37,000 --> 00:07:39,920 Speaker 2: it and were along a lot of people and it's 135 00:07:39,960 --> 00:07:45,120 Speaker 2: still a young guy. Yeah yeah, And so now it's 136 00:07:45,160 --> 00:07:51,040 Speaker 2: time to tell audience who Atticus LeBlanc is. He's the 137 00:07:51,080 --> 00:07:54,680 Speaker 2: founder and CEO of pad Split, which I got, to 138 00:07:54,720 --> 00:07:58,520 Speaker 2: be honest with never heard of it until now, and 139 00:07:58,840 --> 00:08:00,680 Speaker 2: now I can't quit think of out how I'm gonna 140 00:08:00,680 --> 00:08:06,360 Speaker 2: get involved in pad split. It's really cool, but there's 141 00:08:06,400 --> 00:08:08,680 Speaker 2: a lot before we get there to set it up. 142 00:08:10,840 --> 00:08:13,160 Speaker 2: So in two thousand and five, I assume because that 143 00:08:13,320 --> 00:08:17,280 Speaker 2: is something you never gonna sign. You said ostall a 144 00:08:17,360 --> 00:08:18,080 Speaker 2: Vista baby. 145 00:08:18,320 --> 00:08:21,600 Speaker 1: Yeah yeah, so I but you're twenty I was twenty five. 146 00:08:22,880 --> 00:08:25,200 Speaker 2: I was thirty one when I said Ostilla Vista and 147 00:08:25,240 --> 00:08:29,600 Speaker 2: took my deep dive and tried to bankrupt myself about 148 00:08:29,640 --> 00:08:33,280 Speaker 2: seven or eight times. Yeah, yeah, but twenty five is young. 149 00:08:33,800 --> 00:08:35,640 Speaker 2: It was Were you married at this time? 150 00:08:36,040 --> 00:08:40,080 Speaker 1: It's funny. I actually I had to I had to 151 00:08:40,160 --> 00:08:43,439 Speaker 1: leave ten days before my wedding. So, oh my. 152 00:08:43,320 --> 00:08:47,360 Speaker 2: Gosh, your wife said, okay, or your fiance at the time. 153 00:08:47,559 --> 00:08:50,640 Speaker 1: She she did. She wasn't worried. I teased, though. My 154 00:08:50,640 --> 00:08:54,679 Speaker 1: my father in law is just very straight laced, has 155 00:08:54,720 --> 00:09:00,120 Speaker 1: done absolutely everything by the book, and I teased that 156 00:09:00,280 --> 00:09:01,680 Speaker 1: he must have been thrilled with. 157 00:09:01,640 --> 00:09:06,720 Speaker 2: Me, Oh, ten days before you're gonna married my daughter, 158 00:09:07,120 --> 00:09:07,959 Speaker 2: you quit? 159 00:09:08,320 --> 00:09:12,200 Speaker 1: Yeah, exactly exactly. So it takes. 160 00:09:12,280 --> 00:09:12,839 Speaker 2: It takes that. 161 00:09:12,880 --> 00:09:17,440 Speaker 1: Though it did well, and I mean I was again 162 00:09:17,640 --> 00:09:20,800 Speaker 1: maybe young and stupid and just full of potspah and 163 00:09:21,520 --> 00:09:23,080 Speaker 1: confident that I could figure out a way to make 164 00:09:23,120 --> 00:09:26,280 Speaker 1: it work. I also saw through that job that the 165 00:09:26,320 --> 00:09:28,559 Speaker 1: real estate brokers on the other side of the table, 166 00:09:28,559 --> 00:09:32,120 Speaker 1: who were often doing the negotiating for the seller, Uh, 167 00:09:32,559 --> 00:09:35,559 Speaker 1: we're making really good commission checks on the back end. 168 00:09:36,000 --> 00:09:38,000 Speaker 1: And I thought, oh, well, if I'm on this side, 169 00:09:38,000 --> 00:09:41,160 Speaker 1: I can totally go do that. And so that's that 170 00:09:41,360 --> 00:09:46,280 Speaker 1: was the first jump. And then of course that business 171 00:09:46,320 --> 00:09:51,240 Speaker 1: takes a while to build because it's a relationship business. 172 00:09:51,320 --> 00:09:54,120 Speaker 1: And so for the next seven years money no, I 173 00:09:54,120 --> 00:09:58,280 Speaker 1: didn't have any money. No, But and actually we we 174 00:09:58,400 --> 00:10:01,400 Speaker 1: forgot a pretty important piece, which was was when I 175 00:10:01,440 --> 00:10:04,120 Speaker 1: went from renting that room, I was rerunting a room, 176 00:10:04,360 --> 00:10:06,320 Speaker 1: like when I got to a land. I was running 177 00:10:06,360 --> 00:10:08,920 Speaker 1: that room for six months. And then when that lease 178 00:10:09,040 --> 00:10:11,480 Speaker 1: was up with the guy who actually was on the lease, 179 00:10:12,880 --> 00:10:15,480 Speaker 1: he said he was going to move in with his 180 00:10:15,520 --> 00:10:18,000 Speaker 1: girlfriend or something, and so I was left to figure 181 00:10:18,000 --> 00:10:19,959 Speaker 1: out what I was going to do, and started looking 182 00:10:20,000 --> 00:10:22,079 Speaker 1: at apartments and then said, oh, well, for what I'm 183 00:10:22,080 --> 00:10:24,160 Speaker 1: going to pay in rent for this crappy apartment, I 184 00:10:24,160 --> 00:10:27,120 Speaker 1: can actually buy a house. And so I bought a 185 00:10:27,160 --> 00:10:31,480 Speaker 1: house when I was twenty three at essentially zero money down, 186 00:10:32,440 --> 00:10:35,560 Speaker 1: and my mortgage with insurance and everything was like seven 187 00:10:35,679 --> 00:10:38,120 Speaker 1: hundred and seventeen dollars a month. And so that was 188 00:10:38,160 --> 00:10:41,079 Speaker 1: the only reason I was able to leave Racetrack at 189 00:10:41,120 --> 00:10:44,319 Speaker 1: the time and feel comfortable ten days before my wedding. 190 00:10:44,840 --> 00:10:46,640 Speaker 1: Even though a lot of the other people were presented 191 00:10:46,640 --> 00:10:48,600 Speaker 1: with the same agreement and wanted to leave, they weren't 192 00:10:48,600 --> 00:10:51,920 Speaker 1: in a position where they had bills that were low 193 00:10:52,040 --> 00:10:55,240 Speaker 1: enough where they could justify the risk of taking on 194 00:10:55,280 --> 00:10:58,800 Speaker 1: a new venture. And so when I left Racetrack, I 195 00:10:58,840 --> 00:11:00,640 Speaker 1: did two things. One, I said, Okay, well, I want 196 00:11:00,640 --> 00:11:04,000 Speaker 1: to build my business as a real estate broker and 197 00:11:04,280 --> 00:11:07,160 Speaker 1: kind of wear my own my own hat and kind 198 00:11:07,160 --> 00:11:10,360 Speaker 1: of build my own shop. But the second thing was, well, 199 00:11:11,080 --> 00:11:15,600 Speaker 1: I also want to figure out what my contingency plan is. 200 00:11:15,720 --> 00:11:18,480 Speaker 1: And so the contingency plan was this little house that 201 00:11:18,520 --> 00:11:20,640 Speaker 1: I had bought in two thousand and three out of foreclosure, 202 00:11:21,400 --> 00:11:23,560 Speaker 1: was not in a great area. It was in a 203 00:11:23,720 --> 00:11:26,320 Speaker 1: very transitional in Atlanta. 204 00:11:25,880 --> 00:11:29,840 Speaker 2: For that kind of money. It was on the fringe. 205 00:11:29,360 --> 00:11:31,520 Speaker 1: That is correct, Yeah, on the fringe. And it was 206 00:11:31,520 --> 00:11:34,480 Speaker 1: a fixer upper. And there was an abandoned house right 207 00:11:34,520 --> 00:11:37,480 Speaker 1: next door where my wife Alis and I used to 208 00:11:37,520 --> 00:11:39,480 Speaker 1: kind of have to scare people out of the driveway 209 00:11:39,520 --> 00:11:42,640 Speaker 1: because some people would bring prostitutes in the driveway. Anyway, 210 00:11:44,120 --> 00:11:45,880 Speaker 1: So we're like, okay, we're going to we're going to 211 00:11:45,920 --> 00:11:49,320 Speaker 1: solve this problem. And I think I can get a 212 00:11:49,360 --> 00:11:53,160 Speaker 1: mortgage using my racetrack W two income and my wife's 213 00:11:53,160 --> 00:11:56,920 Speaker 1: income to buy this house. And then I can use 214 00:11:57,080 --> 00:11:59,680 Speaker 1: I have equity now in the first home that I purchased, 215 00:12:00,120 --> 00:12:02,440 Speaker 1: I can borrow against to fix it up, and then 216 00:12:02,640 --> 00:12:05,360 Speaker 1: I can sell that house that's fixed up and make 217 00:12:05,400 --> 00:12:07,680 Speaker 1: some money that way. So those were kind of the 218 00:12:07,760 --> 00:12:08,320 Speaker 1: two and. 219 00:12:08,360 --> 00:12:09,600 Speaker 2: Get rid of the hookers on the drum. 220 00:12:10,080 --> 00:12:12,480 Speaker 1: Yes, yes, that was a win win. Yeah, that was 221 00:12:12,480 --> 00:12:16,080 Speaker 1: a happy That was a happy benefit. So that was 222 00:12:16,120 --> 00:12:19,280 Speaker 1: like the two prong approach to entrepreneurship for me in 223 00:12:19,320 --> 00:12:22,319 Speaker 1: two thousand and five. One of those things worked out 224 00:12:22,360 --> 00:12:25,280 Speaker 1: really well and one didn't work out at all, which 225 00:12:25,440 --> 00:12:28,800 Speaker 1: is so the house sold in late two thousand and six, 226 00:12:29,000 --> 00:12:31,640 Speaker 1: just before things started getting a little bit dicey in 227 00:12:31,679 --> 00:12:37,160 Speaker 1: the real estate market, and my brokerage career really took 228 00:12:37,160 --> 00:12:40,600 Speaker 1: a nose dive in two thousand and seven, because I 229 00:12:40,679 --> 00:12:42,760 Speaker 1: was a land guy, we were at the very front 230 00:12:42,920 --> 00:12:46,920 Speaker 1: end of the financial crisis, and so I started feeling 231 00:12:46,920 --> 00:12:51,760 Speaker 1: the repercussions of that long before the general public or 232 00:12:51,840 --> 00:12:56,440 Speaker 1: other aspects of the market would. My first son was 233 00:12:56,480 --> 00:13:00,679 Speaker 1: born in September of two thousand and seven. Wife, whose 234 00:13:00,760 --> 00:13:02,720 Speaker 1: dream job was to work for the un had had 235 00:13:02,760 --> 00:13:04,520 Speaker 1: that dream job for a little bit. Inside it that 236 00:13:04,559 --> 00:13:09,160 Speaker 1: she hated it and she wanted to stop working take 237 00:13:09,200 --> 00:13:12,520 Speaker 1: care of the baby. I'm like, well, she's obviously helped 238 00:13:12,559 --> 00:13:15,280 Speaker 1: support me for the last several years at this point, 239 00:13:15,960 --> 00:13:20,240 Speaker 1: so I accepted that. And over the next three weeks, though, 240 00:13:20,679 --> 00:13:24,000 Speaker 1: I had three large deals and every single one of 241 00:13:24,040 --> 00:13:27,679 Speaker 1: them fell apart, and so I ended up making a 242 00:13:27,720 --> 00:13:30,120 Speaker 1: total of ten thousand dollars in two thousand and seven, 243 00:13:30,720 --> 00:13:33,560 Speaker 1: had a new baby at home and a wife who 244 00:13:33,600 --> 00:13:37,440 Speaker 1: had just left her job. Exactly. Yeah, so it's perfect. 245 00:13:40,559 --> 00:13:43,720 Speaker 2: And now a few messages from our general sponsors. But 246 00:13:43,840 --> 00:13:47,240 Speaker 2: first I hope you'll follow us on your favorite social 247 00:13:47,320 --> 00:13:51,960 Speaker 2: media channels where we share more powerful content, including reels 248 00:13:52,360 --> 00:13:56,120 Speaker 2: from our video studio and testimonials from Army and mepers. 249 00:13:56,760 --> 00:14:02,559 Speaker 2: We're at army of normal folks on every channel. Give 250 00:14:02,640 --> 00:14:17,199 Speaker 2: us a follo up, We'll be right back. I started 251 00:14:17,200 --> 00:14:22,320 Speaker 2: my business in two thousand and one, September one of 252 00:14:22,360 --> 00:14:26,800 Speaker 2: two thousand and one, I had My children were five, four, three, 253 00:14:26,840 --> 00:14:30,360 Speaker 2: and two. We got on city water and it cleared up, 254 00:14:30,480 --> 00:14:33,040 Speaker 2: but it's just they just kept coming for some reason 255 00:14:35,840 --> 00:14:42,080 Speaker 2: and got over that home. And I had seventeen thousand 256 00:14:42,080 --> 00:14:43,760 Speaker 2: dollars in the bank when I started my business, and 257 00:14:43,800 --> 00:14:49,480 Speaker 2: now I'm in manufacturing, so it's asset laden, lots of employees. 258 00:14:49,640 --> 00:14:55,800 Speaker 2: It's very hard to cash flowed. And I bought out 259 00:14:55,920 --> 00:15:03,359 Speaker 2: my investors in mid two thousand and six, all leveraged, 260 00:15:03,600 --> 00:15:06,480 Speaker 2: and we're talking millions of dollars. And I never even 261 00:15:06,520 --> 00:15:10,440 Speaker 2: millions of dollars, never even entered my vocabulary before then. 262 00:15:10,520 --> 00:15:14,880 Speaker 2: I came from nothing, and I'm in the hardwood lumber business. 263 00:15:16,320 --> 00:15:22,760 Speaker 2: So you think lands on the front end. If people 264 00:15:22,760 --> 00:15:27,440 Speaker 2: are building homes, they're thinking about flooring in cabinets and 265 00:15:27,480 --> 00:15:33,960 Speaker 2: molding and millwork in the development phrase. And if cabinet 266 00:15:34,040 --> 00:15:39,160 Speaker 2: companies and millwork companies don't have a log of six 267 00:15:39,200 --> 00:15:44,280 Speaker 2: to nine months worth of orders, then they're not buying wood. 268 00:15:44,360 --> 00:15:47,040 Speaker 2: And our wood is not wood that you cut down 269 00:15:47,080 --> 00:15:49,680 Speaker 2: a tree and it becomes usable. Number like TNE our 270 00:15:49,760 --> 00:15:52,280 Speaker 2: stop takes a year to two years to get right. 271 00:15:52,880 --> 00:15:57,440 Speaker 2: So the whole point is hearing your story. Oddly, I 272 00:15:57,560 --> 00:16:00,760 Speaker 2: feel it because it was in late two thousand and 273 00:16:00,800 --> 00:16:03,600 Speaker 2: six and early two thousand. Everybody says it's the crash 274 00:16:03,640 --> 00:16:07,400 Speaker 2: of two thousand and whatever, eight or whatever. For us, 275 00:16:07,440 --> 00:16:09,880 Speaker 2: there's a crash of two thousand and six, late two 276 00:16:09,920 --> 00:16:13,240 Speaker 2: thousand and six, two thousand and seven, And I mean 277 00:16:13,680 --> 00:16:16,760 Speaker 2: it was layoffs for a six year old company. It 278 00:16:16,800 --> 00:16:20,400 Speaker 2: was layoffs. It was bank dut it was scratch. It 279 00:16:20,520 --> 00:16:27,160 Speaker 2: was not paying myself. It was literally wondering month by 280 00:16:27,200 --> 00:16:29,160 Speaker 2: month if we were going to cash full enough for 281 00:16:29,200 --> 00:16:31,080 Speaker 2: me to keep the doors open. So when you say, 282 00:16:31,800 --> 00:16:34,400 Speaker 2: and I had four small children and a wife taking 283 00:16:34,440 --> 00:16:36,720 Speaker 2: care of him at home, and it just bought a house. 284 00:16:37,640 --> 00:16:41,240 Speaker 2: So I'm just saying to you, those who are listing 285 00:16:41,280 --> 00:16:45,440 Speaker 2: to us that didn't experience business or entrepreneurship or troubles 286 00:16:45,480 --> 00:16:48,920 Speaker 2: at that time, they were very very real. Yep, so 287 00:16:48,960 --> 00:16:50,960 Speaker 2: how do you live on ten thousand dollars with a 288 00:16:51,000 --> 00:16:51,720 Speaker 2: wife and a kid? 289 00:16:52,240 --> 00:16:55,040 Speaker 1: Uh? You borrow a lot? 290 00:16:55,400 --> 00:16:55,680 Speaker 2: Yeah? 291 00:16:56,000 --> 00:17:01,520 Speaker 1: Yeah, I mean it was it was true. But I 292 00:17:01,560 --> 00:17:05,200 Speaker 1: took two contract jobs kind of doing brokerage type work 293 00:17:05,320 --> 00:17:10,320 Speaker 1: for other people, and mostly as you know, I mean, 294 00:17:10,359 --> 00:17:12,119 Speaker 1: it was a terrible job market as well, certainly for 295 00:17:12,160 --> 00:17:13,399 Speaker 1: any of the skills that I had. And it's not 296 00:17:13,520 --> 00:17:18,639 Speaker 1: like the people were hiring. But I was walking around 297 00:17:18,640 --> 00:17:21,080 Speaker 1: like penguin for for a while trying to figure out, Okay, 298 00:17:21,520 --> 00:17:24,359 Speaker 1: what was I going to do and how could I 299 00:17:24,520 --> 00:17:26,399 Speaker 1: find a way? And I went back to Okay, well 300 00:17:26,400 --> 00:17:27,440 Speaker 1: the house next door worked out. 301 00:17:27,440 --> 00:17:30,000 Speaker 2: Well, oh well, but your father in law really loved you. 302 00:17:30,560 --> 00:17:33,639 Speaker 1: Now, I got to give credits him he and he 303 00:17:33,720 --> 00:17:37,359 Speaker 1: has been nothing but supportive throughout the entire journey, and 304 00:17:38,560 --> 00:17:41,919 Speaker 1: he and my wife both have never had anything but 305 00:17:42,040 --> 00:17:44,200 Speaker 1: confidence that that I would make it work. 306 00:17:44,240 --> 00:17:45,240 Speaker 2: So pretty cool. 307 00:17:45,760 --> 00:17:46,919 Speaker 1: It's it's really been amazing. 308 00:17:46,960 --> 00:17:48,760 Speaker 2: I mean, when that doesn't work, if you don't have 309 00:17:48,800 --> 00:17:51,280 Speaker 2: that support, when you have to light the world's falling apart, 310 00:17:51,359 --> 00:17:54,400 Speaker 2: when you have that to lean on somehow, it makes 311 00:17:54,440 --> 00:17:54,920 Speaker 2: it okay. 312 00:17:55,119 --> 00:17:58,000 Speaker 1: Yeah, I mean the word rock does not do it 313 00:17:58,200 --> 00:18:01,800 Speaker 1: justice enough, But you sold that house. Yeah, so we 314 00:18:01,840 --> 00:18:06,040 Speaker 1: sold the house next door and that was helpful, and 315 00:18:06,040 --> 00:18:07,880 Speaker 1: then we had the line of credit, right, so when 316 00:18:07,920 --> 00:18:09,520 Speaker 1: we sold the house, we got the line of credit 317 00:18:09,600 --> 00:18:11,600 Speaker 1: back to be able to draw. And so I knew, Okay, well, 318 00:18:11,600 --> 00:18:13,840 Speaker 1: I can survive off of this line of credit for 319 00:18:13,880 --> 00:18:17,439 Speaker 1: like two years. Now we're eating rice and beans, but 320 00:18:18,240 --> 00:18:22,280 Speaker 1: we can make it work. And so then how do 321 00:18:22,400 --> 00:18:24,199 Speaker 1: I But what I really started thinking was how do 322 00:18:24,240 --> 00:18:27,720 Speaker 1: I get myself into a position where I'm not relying 323 00:18:27,880 --> 00:18:33,119 Speaker 1: on other people's decision making. And when brokerage business, you 324 00:18:33,160 --> 00:18:37,160 Speaker 1: were entirely beholden to your client and they can make 325 00:18:37,160 --> 00:18:40,480 Speaker 1: a good decision or terrible decision. And I was interested 326 00:18:40,520 --> 00:18:44,760 Speaker 1: in the value. I could see areas around Atlanta where 327 00:18:44,800 --> 00:18:47,840 Speaker 1: I thought this is a great deal, but I was 328 00:18:47,880 --> 00:18:50,560 Speaker 1: interested in the best value for the lowest price. Like 329 00:18:50,600 --> 00:18:53,720 Speaker 1: that was just the investor mindset, and that doesn't really 330 00:18:53,840 --> 00:18:56,120 Speaker 1: pay off as a brokerage generally. So that was something 331 00:18:56,160 --> 00:18:58,080 Speaker 1: that was always under the surface that was bothering me. 332 00:18:58,600 --> 00:19:00,480 Speaker 1: And so I started thinking, Okay, well have this line 333 00:19:00,480 --> 00:19:02,520 Speaker 1: of credit. What can I go by with this line 334 00:19:02,520 --> 00:19:05,120 Speaker 1: of credit? It was fifty thousand dollars, so this line 335 00:19:05,160 --> 00:19:07,639 Speaker 1: of credit against my home for fifty grand, and so 336 00:19:07,680 --> 00:19:09,600 Speaker 1: I start looking at other houses. The one next door 337 00:19:09,640 --> 00:19:11,000 Speaker 1: worked out, well, so what else can I do? 338 00:19:11,800 --> 00:19:15,119 Speaker 2: Did you only need to have enough credit for a 339 00:19:15,160 --> 00:19:19,000 Speaker 2: down payment, So fifty thousand dollars credit, it could give 340 00:19:19,040 --> 00:19:21,680 Speaker 2: you five ten thousand dollars down payments. 341 00:19:22,280 --> 00:19:25,240 Speaker 1: Yeah. The problem was we didn't. We couldn't for that. 342 00:19:25,520 --> 00:19:28,000 Speaker 1: We couldn't qualify for long having to pay cash. Correct. Yeah, 343 00:19:28,000 --> 00:19:30,639 Speaker 1: so you had that in the entirety of that fifty 344 00:19:30,680 --> 00:19:32,840 Speaker 1: grand to go buy a house. So I'm like, okay, well, 345 00:19:33,119 --> 00:19:33,480 Speaker 1: let me. 346 00:19:33,480 --> 00:19:35,000 Speaker 2: Look, you're still on the fringe. 347 00:19:35,200 --> 00:19:39,520 Speaker 1: Yeah, We're definitely in the fringe. And so I started 348 00:19:39,520 --> 00:19:43,280 Speaker 1: looking inside the perimeter. I too eighty five in Atlanta, 349 00:19:43,480 --> 00:19:46,680 Speaker 1: and my search was under fifty thousand dollars, Like, what's 350 00:19:46,720 --> 00:19:49,320 Speaker 1: what can I find for under fifty thousand dollars? And 351 00:19:49,400 --> 00:19:51,560 Speaker 1: I had done that search before and usually it was 352 00:19:52,640 --> 00:19:55,120 Speaker 1: fifty burned out shacks in the worst parts of town. 353 00:19:55,840 --> 00:19:58,520 Speaker 1: And this one day in November two thousand and seven, 354 00:19:58,560 --> 00:20:01,200 Speaker 1: as I get back to this realzations start looking again. 355 00:20:01,280 --> 00:20:03,240 Speaker 1: There are eleven hundred houses and. 356 00:20:03,400 --> 00:20:07,160 Speaker 2: It's because the housing markets crashed and they just there's 357 00:20:07,160 --> 00:20:08,679 Speaker 2: an opportunity exactly. 358 00:20:08,760 --> 00:20:11,000 Speaker 1: But it wasn't It was not public yet that the 359 00:20:11,000 --> 00:20:13,520 Speaker 1: housing market had crashed. So I'm calling all. 360 00:20:13,400 --> 00:20:18,159 Speaker 2: These on end and people like me know it, people 361 00:20:18,240 --> 00:20:20,800 Speaker 2: live in the normal world. Don't feel a hip because 362 00:20:20,840 --> 00:20:23,960 Speaker 2: we're on the leading edge of it. That makes complete sense, exactly. 363 00:20:24,240 --> 00:20:26,480 Speaker 2: So you're starting to see it before anybody else does, 364 00:20:26,520 --> 00:20:30,040 Speaker 2: and you're starting to see the very first of the 365 00:20:30,119 --> 00:20:33,560 Speaker 2: houses starting to become available. Now that's interesting. Yeah, So 366 00:20:33,720 --> 00:20:35,439 Speaker 2: timing is everything, isn't it. 367 00:20:35,440 --> 00:20:37,919 Speaker 1: It is? It is, and I mean God works in 368 00:20:38,040 --> 00:20:43,120 Speaker 1: mysterious ways, does right. But so I started looking and 369 00:20:43,359 --> 00:20:45,119 Speaker 1: I was calling all these real estate agents asking what 370 00:20:45,200 --> 00:20:47,760 Speaker 1: was going on, and nobody could give me any any answers. 371 00:20:47,720 --> 00:20:50,000 Speaker 1: They didn't know, No, they didn't, they didn't they I mean, 372 00:20:50,040 --> 00:20:53,199 Speaker 1: they just said that the bank flood started happening in October. 373 00:20:53,560 --> 00:20:56,080 Speaker 1: Most of the early houses were all kind of mortgage 374 00:20:56,080 --> 00:20:59,240 Speaker 1: fraud type deals, So you would see prior sales for 375 00:20:59,320 --> 00:21:03,359 Speaker 1: like two hundred and fifty thousand dollars for this little 376 00:21:03,400 --> 00:21:05,919 Speaker 1: house that in no way, shape or form could have 377 00:21:05,920 --> 00:21:08,320 Speaker 1: ever actually sold for two hundred and fifty thousand dollars, 378 00:21:08,760 --> 00:21:12,639 Speaker 1: but it was still cheaper than anything had been in 379 00:21:12,680 --> 00:21:16,160 Speaker 1: the last four years for that same property, the same neighborhood, 380 00:21:16,160 --> 00:21:19,280 Speaker 1: et cetera. And these were, i mean, in town neighborhoods, 381 00:21:19,320 --> 00:21:22,040 Speaker 1: not necessarily on the fringe. In some cases absolutely past 382 00:21:22,080 --> 00:21:27,880 Speaker 1: the fringe, but many of them were in relatively stable neighborhoods. 383 00:21:27,920 --> 00:21:29,520 Speaker 1: And so it kind of left me both scratched my 384 00:21:29,600 --> 00:21:30,520 Speaker 1: head and. 385 00:21:30,600 --> 00:21:34,320 Speaker 2: Are we talking are we talking new cookie cutter construction 386 00:21:34,400 --> 00:21:36,800 Speaker 2: houses or we've talked in houses built in the sixties 387 00:21:36,800 --> 00:21:39,880 Speaker 2: and seventies that that the bones were there. Yeah. 388 00:21:39,960 --> 00:21:44,280 Speaker 1: Mostly, So you kind of have two eras of development. 389 00:21:45,240 --> 00:21:47,960 Speaker 1: You have one that was like nineteen twenties, these really 390 00:21:48,119 --> 00:21:50,560 Speaker 1: historic neighborhoods and the. 391 00:21:50,760 --> 00:21:55,440 Speaker 2: Bungalow type, yes, exactly, and MEMPHISI is full of them, yeah, yeah. 392 00:21:55,640 --> 00:21:57,399 Speaker 1: And then the other, the other era would be like 393 00:21:57,680 --> 00:22:01,679 Speaker 1: nineteen fifties, early sixties style. Yeah, post World War two. 394 00:22:01,800 --> 00:22:04,840 Speaker 2: The World War two that's coming home and getting the 395 00:22:04,920 --> 00:22:08,360 Speaker 2: twelve hundred square foot, three bedroom, two bath, small kitchen. 396 00:22:08,160 --> 00:22:09,880 Speaker 1: Yeah, nine hundred, twelve hundred square foot. 397 00:22:09,960 --> 00:22:13,360 Speaker 2: But those houses exactly exemphasis, full of those. Yeah. 398 00:22:13,400 --> 00:22:16,840 Speaker 1: I mean pretty much every city, every city has. 399 00:22:16,720 --> 00:22:20,040 Speaker 2: He's especially in the city center exactly because that's where 400 00:22:20,040 --> 00:22:21,440 Speaker 2: the city was before it grew. 401 00:22:21,560 --> 00:22:26,840 Speaker 1: Okay, exactly, So in any case, I try to convince 402 00:22:26,920 --> 00:22:31,120 Speaker 1: anyone who will listen to me. Friends, family, my former clients. 403 00:22:31,800 --> 00:22:36,760 Speaker 1: Father in law, I was pretty sure he was out 404 00:22:37,800 --> 00:22:42,600 Speaker 1: way too conservative to invest in this. I was just 405 00:22:42,720 --> 00:22:44,560 Speaker 1: I was thankful that he tolerated me for as long 406 00:22:44,560 --> 00:22:49,080 Speaker 1: as he did. So, Yeah, I ended up creating a 407 00:22:49,080 --> 00:22:51,800 Speaker 1: little company called Atlanta Housing Fund. So they'll give you 408 00:22:51,800 --> 00:22:53,879 Speaker 1: an idea of how early it was that Atlanta Housing 409 00:22:53,880 --> 00:22:57,680 Speaker 1: Fund was available as a name. And Atlanta Housing Fund 410 00:22:57,760 --> 00:23:03,359 Speaker 1: still only has two houses, but bought thirteen houses under 411 00:23:03,480 --> 00:23:05,040 Speaker 1: thirty thousand dollars the first year. 412 00:23:05,240 --> 00:23:09,040 Speaker 2: Okay, so you used the fifty grand bought this house 413 00:23:09,080 --> 00:23:10,360 Speaker 2: for thirty. 414 00:23:10,240 --> 00:23:12,840 Speaker 1: So yeah, so I bought I bought three houses. My 415 00:23:12,920 --> 00:23:14,720 Speaker 1: goal was if I can get to ten, if I 416 00:23:14,720 --> 00:23:17,560 Speaker 1: can get to ten on my own, then I can 417 00:23:17,600 --> 00:23:20,040 Speaker 1: replace an income and then I don't have to worry 418 00:23:20,119 --> 00:23:22,960 Speaker 1: about what other people decide to do or not do, 419 00:23:23,200 --> 00:23:24,760 Speaker 1: and I can just know that I have a stable 420 00:23:24,760 --> 00:23:25,720 Speaker 1: income for my family. 421 00:23:25,800 --> 00:23:27,479 Speaker 2: Yeah. But what I'm saying is the first house, how 422 00:23:27,520 --> 00:23:28,080 Speaker 2: much was it? 423 00:23:28,160 --> 00:23:29,600 Speaker 1: Twenty four thousand, one hundred dollars? 424 00:23:29,720 --> 00:23:31,000 Speaker 2: Okay, what are a praise for? 425 00:23:31,600 --> 00:23:34,840 Speaker 1: Oh gosh, at that time, probably twenty seven thousand dollars. 426 00:23:35,040 --> 00:23:37,040 Speaker 2: Okay, so how did you buy ten in the first year? 427 00:23:37,119 --> 00:23:39,480 Speaker 2: Because if you can't borrow and you're having to use 428 00:23:39,520 --> 00:23:42,000 Speaker 2: that line of credit, if there's no equity in what 429 00:23:42,080 --> 00:23:43,560 Speaker 2: you buy immediately, how do you. 430 00:23:43,560 --> 00:23:49,400 Speaker 1: Turn exactly exactly right? So what I did was I 431 00:23:49,480 --> 00:23:52,800 Speaker 1: only ended up buying three on my own over the 432 00:23:52,880 --> 00:23:53,680 Speaker 1: course at first year. 433 00:23:53,720 --> 00:23:56,520 Speaker 2: You raised money for the quote Atlanta Housing Fund. 434 00:23:56,600 --> 00:24:01,320 Speaker 1: Correct, Yeah, so there were two other entities because I 435 00:24:01,359 --> 00:24:03,680 Speaker 1: knew I couldn't turn them right and there was no 436 00:24:04,040 --> 00:24:06,120 Speaker 1: liquidity from banks available. 437 00:24:06,240 --> 00:24:07,720 Speaker 2: That's what I was exactly Yeah. 438 00:24:07,840 --> 00:24:09,440 Speaker 1: I don't know how many banks I walked into where 439 00:24:09,440 --> 00:24:11,480 Speaker 1: they're like, oh, this is a really interesting idea. No 440 00:24:11,680 --> 00:24:16,040 Speaker 1: we can't, we can exactly, so you're in. So it 441 00:24:16,119 --> 00:24:20,000 Speaker 1: was it was all It was all cash, And what 442 00:24:20,040 --> 00:24:22,439 Speaker 1: I would do so that I could actually eat was 443 00:24:22,520 --> 00:24:25,560 Speaker 1: I would say to these other investors, you pay me 444 00:24:25,640 --> 00:24:29,320 Speaker 1: three thousand dollars to find the home, buy the home, 445 00:24:30,080 --> 00:24:33,560 Speaker 1: manage the renovation, and manage the property. But then you 446 00:24:33,600 --> 00:24:36,920 Speaker 1: give me a third of the income moving forward. 447 00:24:43,440 --> 00:24:56,520 Speaker 2: We'll be right that your property management is what you're doing. 448 00:24:56,680 --> 00:24:57,480 Speaker 1: Correct? Yeah? 449 00:24:57,560 --> 00:24:58,000 Speaker 2: At first? 450 00:24:58,119 --> 00:24:59,520 Speaker 1: Well, well not just property management. 451 00:24:59,560 --> 00:25:01,239 Speaker 2: I mean it was is brokering too. 452 00:25:01,960 --> 00:25:04,960 Speaker 1: It was the broker ing, it was the the proper 453 00:25:05,080 --> 00:25:11,080 Speaker 1: the project management of the construction. I was reasonably good. Yep, yeah, 454 00:25:11,080 --> 00:25:13,919 Speaker 1: got it. But they would pay me three thousand dollars. 455 00:25:14,040 --> 00:25:18,840 Speaker 1: So those really ten houses that I bought with other 456 00:25:18,840 --> 00:25:21,159 Speaker 1: people's money. The first year paid me thirty grand, and 457 00:25:21,160 --> 00:25:23,480 Speaker 1: then I had those two other contract jobs. So that's 458 00:25:23,520 --> 00:25:26,160 Speaker 1: how I could kind of recreate an income for two 459 00:25:26,240 --> 00:25:26,880 Speaker 1: thousand and eight. 460 00:25:27,760 --> 00:25:31,560 Speaker 2: You are still square, You're hustling. 461 00:25:32,240 --> 00:25:34,880 Speaker 1: Yes, yeah, it was absolutely a hustle. 462 00:25:36,400 --> 00:25:37,919 Speaker 2: You're swim at a housing medley. 463 00:25:38,119 --> 00:25:41,359 Speaker 1: But it was right, it was, but it was it 464 00:25:41,400 --> 00:25:43,600 Speaker 1: was a lot of learning in the early years, and 465 00:25:43,640 --> 00:25:45,639 Speaker 1: I was I mean I knew these neighborhoods like the 466 00:25:45,640 --> 00:25:47,879 Speaker 1: back of my hand after the first year, where I 467 00:25:47,880 --> 00:25:51,840 Speaker 1: had memorized like every single house on every single block 468 00:25:51,880 --> 00:25:55,520 Speaker 1: that I was interested in buying it over a four 469 00:25:55,560 --> 00:25:56,119 Speaker 1: year period. 470 00:25:56,359 --> 00:26:01,679 Speaker 2: What was the criteria? What made it of value? Your words? 471 00:26:01,880 --> 00:26:06,760 Speaker 1: Yeah, So first thing, first was I had to be 472 00:26:06,960 --> 00:26:09,800 Speaker 1: willing to drive there at eleven o'clock at night with 473 00:26:09,800 --> 00:26:12,719 Speaker 1: my wife in the car. I love that, And so 474 00:26:13,600 --> 00:26:18,000 Speaker 1: if it met that criteria, I was interested. Generally What 475 00:26:18,119 --> 00:26:22,720 Speaker 1: I found was you wanted something that hadn't been lipstick 476 00:26:22,760 --> 00:26:25,520 Speaker 1: on a pig, if you're familiar with that terminology. So 477 00:26:26,520 --> 00:26:29,240 Speaker 1: you wanted to see like as much of an original 478 00:26:29,240 --> 00:26:31,520 Speaker 1: condition as you could, so that you knew what you 479 00:26:31,560 --> 00:26:36,040 Speaker 1: were working with and you could more reliably budget. If 480 00:26:36,080 --> 00:26:40,159 Speaker 1: the air conditioning unit was still there and outside the house, 481 00:26:40,640 --> 00:26:41,600 Speaker 1: that was a goal mine. 482 00:26:41,680 --> 00:26:44,399 Speaker 2: That meant like, because that meant the neighborhood was probably 483 00:26:44,520 --> 00:26:46,480 Speaker 2: decent and had neighbors looking out. 484 00:26:47,160 --> 00:26:49,760 Speaker 1: More the latter than the former. What I realized very 485 00:26:49,800 --> 00:26:52,880 Speaker 1: quickly is there's no such thing as good neighborhood bad neighborhood. 486 00:26:52,920 --> 00:26:54,840 Speaker 1: And I knew this from living in my own house 487 00:26:54,880 --> 00:26:58,080 Speaker 1: as well, which was on the fringe. It's good neighbor, 488 00:26:58,119 --> 00:27:01,359 Speaker 1: bad neighbor. And if if that air conditioning unit were 489 00:27:01,400 --> 00:27:04,320 Speaker 1: in place, you knew that a foreclosure process took long 490 00:27:04,400 --> 00:27:06,480 Speaker 1: enough where it had been sitting there exposed for a 491 00:27:06,520 --> 00:27:09,520 Speaker 1: long period of time. So there was a good neighbor 492 00:27:09,600 --> 00:27:12,879 Speaker 1: somewhere around that was keeping an eye on things. 493 00:27:13,160 --> 00:27:13,600 Speaker 2: Love it. 494 00:27:13,800 --> 00:27:16,560 Speaker 1: That's cool, So those I mean, that was really that 495 00:27:16,640 --> 00:27:17,840 Speaker 1: was really about it, and it was. 496 00:27:17,840 --> 00:27:20,520 Speaker 2: It was field square footage that did matter. 497 00:27:21,080 --> 00:27:26,880 Speaker 1: No, I mean, you knew because the Atlanta Housing Authority 498 00:27:26,920 --> 00:27:29,359 Speaker 1: at the time was shutting down the housing projects, they 499 00:27:29,400 --> 00:27:33,359 Speaker 1: would give housing vouchers to renters, and so you knew 500 00:27:33,359 --> 00:27:36,560 Speaker 1: like how much each bedroom would pay. So you could 501 00:27:36,560 --> 00:27:40,159 Speaker 1: do that math and figure out, all, right, well, I 502 00:27:40,200 --> 00:27:43,960 Speaker 1: can buy this house and be fully renovated for forty 503 00:27:43,960 --> 00:27:47,560 Speaker 1: five thousand dollars and get nine hundred to one thousand 504 00:27:47,560 --> 00:27:49,960 Speaker 1: dollars in rent and that math works. 505 00:27:50,280 --> 00:27:53,600 Speaker 2: So that does work. Yeah, So even if you're were 506 00:27:53,640 --> 00:27:55,360 Speaker 2: you financing these things over thirty. 507 00:27:55,200 --> 00:27:59,000 Speaker 1: Years not initially. The only way we were able to 508 00:27:59,800 --> 00:28:03,119 Speaker 1: roll all the funds eventually was we found one credit 509 00:28:03,200 --> 00:28:06,439 Speaker 1: union who would refinance the properties after they had been 510 00:28:06,480 --> 00:28:09,359 Speaker 1: stabilized and rented and cash flowing for six months. And 511 00:28:09,400 --> 00:28:12,840 Speaker 1: so once we found that, it became a different a 512 00:28:12,840 --> 00:28:15,280 Speaker 1: different game because now you could recycle some of the capital. 513 00:28:15,280 --> 00:28:18,000 Speaker 2: Would they take a thirty or no, twenty fifteen? What 514 00:28:18,000 --> 00:28:20,000 Speaker 2: what a credit union take on a house like it? 515 00:28:20,240 --> 00:28:22,639 Speaker 1: So, yeah, some of them, some of them were thirty, 516 00:28:22,720 --> 00:28:28,359 Speaker 1: but most of them were like fifteen year fifteen year loans. 517 00:28:28,359 --> 00:28:32,600 Speaker 1: That makes sense, but it was it was attractive enough 518 00:28:32,840 --> 00:28:35,679 Speaker 1: for to make sense. And so in by two thousand 519 00:28:35,720 --> 00:28:38,920 Speaker 1: and nine, all my friends, family, formal clients. Everybody's out 520 00:28:38,920 --> 00:28:45,000 Speaker 1: of money. But one of the guys, yeah, we just 521 00:28:45,040 --> 00:28:48,960 Speaker 1: like ever happened. Everyone literally like everything was in the 522 00:28:49,000 --> 00:28:52,320 Speaker 1: houses and anybody else who had money out there was 523 00:28:52,400 --> 00:28:56,680 Speaker 1: not interested in this particular strategy. Some of them I 524 00:28:56,720 --> 00:29:00,680 Speaker 1: still tease about today, say what you could have done? Yeah, exactly. 525 00:29:01,280 --> 00:29:05,480 Speaker 1: But there was one guy, Stan Sugerman, who was in 526 00:29:05,520 --> 00:29:09,160 Speaker 1: the Atlanta Housing Fund partnership. I'd worked with him at Racetrack, interestingly, 527 00:29:09,680 --> 00:29:11,840 Speaker 1: and he had been one of the first investors in 528 00:29:11,880 --> 00:29:15,640 Speaker 1: Atlanta Housing Fund and he was ready to leave his 529 00:29:15,760 --> 00:29:18,560 Speaker 1: job in two thousand and nine and he bought into 530 00:29:18,600 --> 00:29:21,160 Speaker 1: this strategy and thought, Okay, this was going to be 531 00:29:21,720 --> 00:29:24,920 Speaker 1: a worthwhile endeavor, so he was going to go do 532 00:29:24,960 --> 00:29:26,320 Speaker 1: it on his own. I was like, why don't we 533 00:29:26,400 --> 00:29:29,320 Speaker 1: just team up because I can see that we are 534 00:29:29,480 --> 00:29:32,400 Speaker 1: very different personalities and skill sets, but I can see 535 00:29:32,400 --> 00:29:35,160 Speaker 1: that you're hustling every bit is hard or harder than 536 00:29:35,200 --> 00:29:38,320 Speaker 1: I am, and I think it would just be a 537 00:29:38,360 --> 00:29:41,600 Speaker 1: good partnership. And for anyone who knows Stan is like, 538 00:29:41,640 --> 00:29:45,800 Speaker 1: we're very different people, but it's been a fantastic partnership 539 00:29:45,800 --> 00:29:48,680 Speaker 1: to this day. And so his idea was he was 540 00:29:48,720 --> 00:29:51,080 Speaker 1: going to go. He's Jewish, and there were guys at 541 00:29:51,080 --> 00:29:55,680 Speaker 1: a synagogue that would loan money at thirteen percent interest, 542 00:29:55,800 --> 00:29:59,080 Speaker 1: with three percentage points rolled into the loan every six months. 543 00:29:59,160 --> 00:30:01,520 Speaker 1: So it was like exteen in nineteen percent interests. 544 00:30:01,640 --> 00:30:05,000 Speaker 2: Wow, state would loan money like that exactly, loan money 545 00:30:05,040 --> 00:30:05,440 Speaker 2: like that. 546 00:30:07,520 --> 00:30:11,320 Speaker 1: It's a it's a good business. So they would loan. 547 00:30:11,720 --> 00:30:13,560 Speaker 1: They would loan this money to us, but it was 548 00:30:13,600 --> 00:30:18,080 Speaker 1: at one hundred percent financing. Oh, and so we could 549 00:30:18,120 --> 00:30:22,160 Speaker 1: then go buy these properties at really high interest rates 550 00:30:22,920 --> 00:30:25,320 Speaker 1: but one hundred percent financing and then roll them over 551 00:30:26,040 --> 00:30:31,680 Speaker 1: into the Credit Union research exactly. And so so we 552 00:30:31,760 --> 00:30:34,960 Speaker 1: kept we kept buying. Most of them were affordable rentals 553 00:30:35,000 --> 00:30:39,080 Speaker 1: through the Housing Choice or Section eight program. Uh one 554 00:30:39,160 --> 00:30:42,360 Speaker 1: we did with actually a number we did. We started 555 00:30:42,360 --> 00:30:46,000 Speaker 1: this program called the Neighborhood Stabilization Program, which was federal 556 00:30:46,080 --> 00:30:51,120 Speaker 1: dollars in the crash where you had to meet certain criteria, 557 00:30:51,200 --> 00:30:52,840 Speaker 1: had to be affordable housing. And so that was a 558 00:30:52,840 --> 00:30:56,720 Speaker 1: public private partnership with the City of Atlanta. And then 559 00:30:57,520 --> 00:31:01,239 Speaker 1: the other thing that was really interesting was one of 560 00:31:01,280 --> 00:31:04,000 Speaker 1: the first houses that became vacant after the tenant moved 561 00:31:04,000 --> 00:31:07,560 Speaker 1: out after a year. Right next door was a rooming house. 562 00:31:07,680 --> 00:31:10,600 Speaker 1: So I had seen these rooming houses all around town 563 00:31:10,640 --> 00:31:13,720 Speaker 1: as I was driving these different blocks. But my degree 564 00:31:13,760 --> 00:31:16,160 Speaker 1: was in architecture and urban studies. I had never heard 565 00:31:16,200 --> 00:31:19,239 Speaker 1: the term rooming houses outside of the context of like 566 00:31:19,520 --> 00:31:23,200 Speaker 1: nineteen twenties New York. But there was one next door 567 00:31:23,240 --> 00:31:24,800 Speaker 1: to this vacant house that I had, and I got 568 00:31:24,840 --> 00:31:26,200 Speaker 1: to know one of the guys who lived there. His 569 00:31:26,280 --> 00:31:31,280 Speaker 1: name was Mitch, and Mitch earned seven hundred and thirty 570 00:31:31,280 --> 00:31:34,680 Speaker 1: five dollars a month total income. So he had some 571 00:31:34,720 --> 00:31:39,280 Speaker 1: sort of of liver disease and was disabled, and he 572 00:31:39,400 --> 00:31:43,160 Speaker 1: was on Social Security income. And Mitch comes to me 573 00:31:43,240 --> 00:31:47,560 Speaker 1: one day when the house is vacant, says, hey, can 574 00:31:47,600 --> 00:31:50,920 Speaker 1: we come rent rooms in your house? Because this house 575 00:31:50,960 --> 00:31:52,920 Speaker 1: is going to get foreclosed and we're all going to 576 00:31:52,960 --> 00:31:57,959 Speaker 1: be evicted. And a couple things occurred to me at 577 00:31:57,960 --> 00:32:01,080 Speaker 1: that moment. One when I learned that Mitch is earning 578 00:32:01,080 --> 00:32:05,200 Speaker 1: seven hundred and thirty five dollars a month, I realize, 579 00:32:05,280 --> 00:32:08,360 Speaker 1: Mitch is not going to qualify for anything anywhere in 580 00:32:08,360 --> 00:32:08,600 Speaker 1: the state. 581 00:32:08,720 --> 00:32:12,760 Speaker 2: Hitch is that foreclosure way from literally being a homeless man, 582 00:32:13,120 --> 00:32:17,000 Speaker 2: yes on the streets begging for money, Yeah, exactly, And 583 00:32:17,080 --> 00:32:19,040 Speaker 2: where do they send the sochi security check when you 584 00:32:19,040 --> 00:32:23,800 Speaker 2: don't have a Yeah, what you're saying now dives into 585 00:32:24,480 --> 00:32:29,880 Speaker 2: a whole societal thing that people really don't understand that 586 00:32:30,920 --> 00:32:34,480 Speaker 2: Mitch is disabled. He is getting seven hundred and thirty 587 00:32:34,760 --> 00:32:38,040 Speaker 2: dollars a month, but what does that afford him? And 588 00:32:38,080 --> 00:32:40,600 Speaker 2: if it doesn't afford him anything, he literally is now 589 00:32:40,640 --> 00:32:45,080 Speaker 2: a homeless guy, and good luck getting the money to 590 00:32:45,160 --> 00:32:47,480 Speaker 2: him when he doesn't have a residence. And it's as 591 00:32:47,520 --> 00:32:53,120 Speaker 2: a really slippery teeterie slope that once it starts downhill, 592 00:32:53,600 --> 00:32:57,240 Speaker 2: the wheels come off. And there's hundreds of thousands of 593 00:32:57,240 --> 00:32:58,280 Speaker 2: Americans like Mitch. 594 00:32:58,560 --> 00:33:02,480 Speaker 1: Yeah, especially in two and nine yea, when I mean 595 00:33:02,520 --> 00:33:05,680 Speaker 1: it was all paper checks and nowhere to go. But 596 00:33:06,360 --> 00:33:10,280 Speaker 1: I what I realize is even in the worst parts, 597 00:33:10,400 --> 00:33:14,000 Speaker 1: well beyond the fringe, worst parts of town, crappiest departments, 598 00:33:14,840 --> 00:33:18,360 Speaker 1: most property managers are looking at three times the rent 599 00:33:18,520 --> 00:33:22,360 Speaker 1: for an income requirement. Well, we're in the depth of 600 00:33:22,400 --> 00:33:24,520 Speaker 1: the crash, like it is clear to everyone in two 601 00:33:24,560 --> 00:33:26,760 Speaker 1: thousand and nine. Oh yeah, we are in it. We 602 00:33:26,760 --> 00:33:28,239 Speaker 1: don't know if we're ever going to come out of it. 603 00:33:28,360 --> 00:33:32,080 Speaker 2: Yep. Banks are failing the government's buying propping up be 604 00:33:32,240 --> 00:33:36,520 Speaker 2: of a or somebody else. It was terrible, and nobody's 605 00:33:36,560 --> 00:33:37,600 Speaker 2: coming to save Mitch. 606 00:33:37,680 --> 00:33:40,840 Speaker 1: Right well, and there are no units available at the 607 00:33:40,960 --> 00:33:43,120 Speaker 1: two hundred dollars in change per month that he can 608 00:33:43,160 --> 00:33:46,760 Speaker 1: actually qualify for. Uh. And so so that was the 609 00:33:46,760 --> 00:33:49,360 Speaker 1: first thing. The second thing I realized was, wait a second, Well, 610 00:33:49,440 --> 00:33:51,960 Speaker 1: how many other people have that same problem that they're 611 00:33:51,960 --> 00:33:54,680 Speaker 1: not going to qualify for anything? And you realize the 612 00:33:54,840 --> 00:33:59,120 Speaker 1: entire service sector, right, anybody working minimum wage jobs or 613 00:33:59,240 --> 00:34:01,920 Speaker 1: working at McDonald's or Wendys or what have you like, 614 00:34:02,040 --> 00:34:05,680 Speaker 1: they have a very similar problem. Because when housing is 615 00:34:05,680 --> 00:34:07,560 Speaker 1: as cheap as it's ever been, it's still not cheap 616 00:34:07,640 --> 00:34:10,879 Speaker 1: enough for those people to qualify. You've got a massive issue. 617 00:34:10,680 --> 00:34:11,640 Speaker 2: Even for an apartment. 618 00:34:11,719 --> 00:34:14,879 Speaker 1: Correct. And And that house that they had been living 619 00:34:14,960 --> 00:34:16,400 Speaker 1: in there had been a tarp on the roof the 620 00:34:16,520 --> 00:34:19,160 Speaker 1: entire year that I had Are you kidding? I had 621 00:34:19,160 --> 00:34:21,680 Speaker 1: the house next door, there had been no heating and 622 00:34:21,719 --> 00:34:26,680 Speaker 1: air conditioning wires hanging off the side. And they were 623 00:34:26,680 --> 00:34:28,280 Speaker 1: paying one hundred bucks a week. 624 00:34:28,440 --> 00:34:31,680 Speaker 2: For rooms, which how many were in that house? 625 00:34:31,840 --> 00:34:35,560 Speaker 1: There were five in that two thousand dollars a month. 626 00:34:35,760 --> 00:34:37,680 Speaker 1: It's more than that because there are four point three 627 00:34:37,920 --> 00:34:40,040 Speaker 1: weeks in a month, not only. 628 00:34:39,760 --> 00:34:47,080 Speaker 2: Four, that's right, So twenty four fifty a month about yeah. 629 00:34:47,400 --> 00:34:49,000 Speaker 1: Yeah, Now, like, how in. 630 00:34:48,960 --> 00:34:53,920 Speaker 2: The world can the tenant lose that property when he 631 00:34:54,000 --> 00:34:56,480 Speaker 2: has that kind of income coming in on a place 632 00:34:56,520 --> 00:34:57,840 Speaker 2: that is clearly a. 633 00:34:57,880 --> 00:35:00,759 Speaker 1: Cost great question, I mean, who knows. 634 00:35:01,040 --> 00:35:03,760 Speaker 2: But the fact is it's getting foreclosed. 635 00:35:03,360 --> 00:35:04,760 Speaker 1: On, it's getting it's getting for clothing. 636 00:35:07,120 --> 00:35:11,680 Speaker 2: And that concludes part one of our conversation with Atticus LeBlanc, 637 00:35:11,920 --> 00:35:14,600 Speaker 2: and you don't want to miss part two that's now 638 00:35:14,640 --> 00:35:18,720 Speaker 2: available to listen to. Together, guys, we can change this country, 639 00:35:19,239 --> 00:35:21,919 Speaker 2: but it starts with you. I'll see in part two.