WEBVTT - Study Hall: Rehabbing Real Estate 0:00:00.400 --> 0:00:04.280 You just realized your business needed to hire someone yesterday. 0:00:04.800 --> 0:00:09.520 How can you find amazing candidates fast? Easy? Just use Indeed. 0:00:09.960 --> 0:00:12.680 Stop struggling to get your job posts seen on other 0:00:12.760 --> 0:00:16.439 job sites. With Indeed sponsored jobs, your post jumps to 0:00:16.480 --> 0:00:19.000 the top of the page for your relevant candidates, so 0:00:19.120 --> 0:00:22.119 you can reach the people you want faster. According to 0:00:22.160 --> 0:00:26.120 Indeed data, sponsored jobs posted directly on Indeed have forty 0:00:26.120 --> 0:00:30.040 five percent more applications than non sponsored jobs. Don't wait 0:00:30.080 --> 0:00:33.519 any longer. Speed up your hiring right now with Indeed, 0:00:33.960 --> 0:00:36.200 and listeners of this show will get a seventy five 0:00:36.280 --> 0:00:39.440 dollars sponsored job credit to get your jobs more visibility 0:00:39.600 --> 0:00:45.320 at indeed dot com slash pod Katz thirteen. Just go 0:00:45.360 --> 0:00:50.120 to Indeed dot com slash pod Katz thirteen right now 0:00:50.479 --> 0:00:53.040 and support our show by saying you heard about Indeed 0:00:53.080 --> 0:00:57.400 on this podcast. Terms and conditions apply. Hiring Indeed is 0:00:57.440 --> 0:00:58.040 all you need. 0:00:58.560 --> 0:01:03.120 Oh, we start rehab. It's pretty extensive. So the first 0:01:03.120 --> 0:01:06.160 thing that people have been asking for a long time 0:01:06.400 --> 0:01:08.880 is like the hardest part of and even this is 0:01:08.880 --> 0:01:11.960 what Caesar's saying, The hardest part of real estate is 0:01:12.000 --> 0:01:16.759 finding a good contractor. So you have a contracting company like, 0:01:16.880 --> 0:01:19.600 what are tips? How does somebody know you fresh just 0:01:19.600 --> 0:01:21.280 bought a house. You don't know anything about real estate. 0:01:21.280 --> 0:01:23.040 You're trying to rehab you're trying to fix up a home. 0:01:23.440 --> 0:01:26.319 How do you know like a good contractor? Like, how 0:01:26.319 --> 0:01:27.200 do you vet somebody? 0:01:27.560 --> 0:01:27.880 All right? 0:01:27.959 --> 0:01:30.080 This is the only way you can vet somebody without 0:01:30.600 --> 0:01:34.000 actually knowing what to look for. First and foremost. If 0:01:34.000 --> 0:01:36.680 you know what to look for, then you'll know for 0:01:36.680 --> 0:01:38.880 a contract that's good or not just by the conversation. 0:01:39.720 --> 0:01:44.160 But in our demographic in our community is really word 0:01:44.200 --> 0:01:47.039 of mouth. That's how you can tell. I mean, you know, 0:01:47.560 --> 0:01:49.480 if he used a contract and you ask him, like, yo, 0:01:49.520 --> 0:01:52.520 what's up the contract? He's like, nah, even know not 0:01:52.560 --> 0:01:55.080 to use it? Right, But if you're like nah, he 0:01:55.160 --> 0:01:57.800 officials and we got word of mouth spreads fast in 0:01:57.840 --> 0:02:01.320 our community. But the number one way, man, honestly, is 0:02:01.360 --> 0:02:05.160 to actually get educated. Like everybody that's in the real 0:02:05.240 --> 0:02:08.960 estate business, the contractory, they took a hip off the contractor. 0:02:09.160 --> 0:02:11.720 I did you know what I mean? Plenty of contractors 0:02:11.919 --> 0:02:12.640 got over on us. 0:02:12.720 --> 0:02:14.240 Yeah, exactly. How do you know if somebody the. 0:02:14.200 --> 0:02:16.200 Main contract is gonna get over y'alls like your uncles? 0:02:16.240 --> 0:02:17.919 You know what I mean, Like, nah, my uncle and 0:02:17.919 --> 0:02:18.760 I do everything. 0:02:19.200 --> 0:02:20.400 You know, if you get ripped off. 0:02:21.040 --> 0:02:24.160 I mean in the beginning. No, there's really no way 0:02:24.200 --> 0:02:26.240 to know. There's no way to know. Like man, when 0:02:26.280 --> 0:02:28.720 we I never forget. Me and my best friend we 0:02:28.760 --> 0:02:30.600 had a first house at the same time. He decided, 0:02:30.639 --> 0:02:32.919 by the way to fix this, I decided to sell minds. 0:02:34.080 --> 0:02:36.440 I just blew minds out and I never forget my 0:02:36.520 --> 0:02:39.560 uncles of them had did all the plumbing, so his 0:02:39.639 --> 0:02:43.639 bathroom was done in anything, right, so we couldn't we could. 0:02:43.919 --> 0:02:46.400 So I came downstairs one day, I'm like, wholl where 0:02:46.400 --> 0:02:48.880 are the pipes coming Like, this is your bathroom right again, 0:02:48.919 --> 0:02:52.280 I'm like, well, where are the pipes coming from? No water, 0:02:52.639 --> 0:02:55.200 no pipes, know nothing, the whole bathroom done. 0:02:55.400 --> 0:02:57.520 It was like a model home. You know what I'm saying. 0:02:57.520 --> 0:02:59.600 It's like a mouse like staged you know what I mean. 0:03:00.040 --> 0:03:02.640 How they was able to get over was one, he 0:03:02.760 --> 0:03:04.720 was twenty seven, I was about twenty eight. We was kids, 0:03:04.960 --> 0:03:07.800 not knowing nothing about the business. Two the water was 0:03:07.800 --> 0:03:10.200 turned off from the street at the time, so they 0:03:10.200 --> 0:03:11.960 had a Sunday the impression that they would fix the 0:03:12.000 --> 0:03:14.120 house then call the city last to come cut the 0:03:14.160 --> 0:03:17.000 water on. But it was no plumbing, nothing hooked up, 0:03:18.280 --> 0:03:20.200 and they just they just did it like that. 0:03:21.000 --> 0:03:24.040 When you realize that, I mean, it's it's bad, you 0:03:24.080 --> 0:03:26.880 knowation it's bad. 0:03:26.919 --> 0:03:29.320 It's like but I'm gonna tell you something in that era, 0:03:29.480 --> 0:03:31.440 back then, it's just what people did. 0:03:31.480 --> 0:03:31.639 Man. 0:03:31.639 --> 0:03:33.840 People chase the money. They didn't really think that we 0:03:33.880 --> 0:03:35.960 would make it to this level, you know what I mean. Like, 0:03:36.960 --> 0:03:39.280 you know, they didn't care about reputation. But one thing 0:03:39.280 --> 0:03:41.600 about that construction, you will learn it through trial and era. 0:03:41.960 --> 0:03:44.240 Everybody gonna pick something up and try some stuff on 0:03:44.280 --> 0:03:46.600 their own. They're gonna pick something up and try. Every 0:03:46.600 --> 0:03:48.520 one of us did that. It probably took me a 0:03:48.520 --> 0:03:50.560 month and a half the sheet rock this room all 0:03:50.600 --> 0:03:52.160 by myself. But I can do it, you know what 0:03:52.200 --> 0:03:55.160 I mean. But now once you learn like you don't 0:03:55.200 --> 0:03:56.840 cut the sheet right, if you watch it, once you 0:03:56.880 --> 0:03:59.520 watch a professional do something, you know what I just came. 0:03:59.640 --> 0:04:01.720 I just thought about why I'm sitting here. If you 0:04:01.800 --> 0:04:05.280 got the opportunity to be around some professionals, just go watch, 0:04:05.800 --> 0:04:07.720 because if you see how the sheet rocks supposed to 0:04:07.760 --> 0:04:09.720 be done, and you're going to hire somebody. If they're 0:04:09.720 --> 0:04:12.640 too busy, then you know instantly if they're putting it 0:04:12.720 --> 0:04:15.160 up right, if they're putting it up wrong. You understand 0:04:15.160 --> 0:04:17.640 what I'm saying. Oh, put the walls up, then it's 0:04:17.720 --> 0:04:19.120 now you put the ceiling up. Then you put the 0:04:19.160 --> 0:04:21.920 walls up. The walls holding up the ceiling. It's little 0:04:22.160 --> 0:04:24.440 minute stuff like that that you wouldn't know unless you 0:04:24.560 --> 0:04:25.360 was in there watching. 0:04:25.760 --> 0:04:28.440 So like you talk a lot about the phases of rehab. 0:04:28.520 --> 0:04:30.280 So the first one is find the contract and the 0:04:30.320 --> 0:04:31.720 next one is the demolition. 0:04:31.839 --> 0:04:35.479 The constructor scene does that right? First thing is please permits. 0:04:36.320 --> 0:04:38.680 Somebody got to be licensed. ELLENI is not the cops. 0:04:39.560 --> 0:04:41.839 Everybody think Elena's the cops. Like you'll close the windows, 0:04:41.880 --> 0:04:44.240 lock the door, Yo, ELLENI coming down the street. You 0:04:44.279 --> 0:04:44.720 know what I mean? 0:04:44.800 --> 0:04:48.760 Like, Yo, the permit and I felt those are the 0:04:48.800 --> 0:04:51.799 expenses that people don't really think about, like the materials, 0:04:51.839 --> 0:04:52.680 but the. 0:04:52.320 --> 0:04:58.640 Paperwork, permits, plans, blueprints, that sounds like something extensive right now. 0:04:58.960 --> 0:05:01.320 They damn they want playing for everything in Philadelphia. If 0:05:01.360 --> 0:05:04.680 you if I just renovate your basement, they want plans. 0:05:04.800 --> 0:05:07.200 What's the pricing on those permits and get those I 0:05:07.240 --> 0:05:10.600 mean what the permits don't cost nothing, pulling permits in 0:05:10.760 --> 0:05:13.160 like fifty bucks to eighty one eighty. 0:05:13.560 --> 0:05:15.080 Now when you got to get to an architect and 0:05:15.120 --> 0:05:17.440 you need plans, it costs a little more. It might 0:05:17.480 --> 0:05:19.760 be two thousand and three thousand, depend upon the job. 0:05:20.279 --> 0:05:23.720 Now where the permits get pricey at we just I'm 0:05:23.720 --> 0:05:25.880 just gonna put it out there and talk real. Is 0:05:26.400 --> 0:05:28.360 you you doing the house and you don't really have 0:05:28.360 --> 0:05:31.800 a license, So now you want to use his license 0:05:31.839 --> 0:05:33.880 for him to get you a permit, then a permit 0:05:33.960 --> 0:05:36.960 might shoot up to fifteen hundred. This is what people 0:05:37.000 --> 0:05:39.640 do because everybody don't have the credentials. 0:05:39.720 --> 0:05:41.760 So the contractor handles all of that. 0:05:41.800 --> 0:05:43.520 The contract is supposed to handle all of that. 0:05:43.720 --> 0:05:45.560 And so what questions do you do? You ask us? 0:05:45.600 --> 0:05:48.720 Are your licensing insured? Are your licensing insurance almost first 0:05:48.760 --> 0:05:50.840 and foremost? And I'm gonna tell you why, because trying 0:05:50.839 --> 0:05:54.719 to cut corners always seem to revert back to doing 0:05:54.760 --> 0:05:58.400 it three times. You understand what I'm saying. So cutting 0:05:58.440 --> 0:06:00.599 corners always revert back to doing it three times. And 0:06:00.600 --> 0:06:02.880 you look up and you done spent twice the amount 0:06:02.920 --> 0:06:05.040 of money that you were spending, thinking you was gonna 0:06:05.080 --> 0:06:05.760 cut a corner. 0:06:07.520 --> 0:06:10.440 Another thing that I think I heard you say. I 0:06:10.480 --> 0:06:12.799 know Caesars said as well as that you paid contract 0:06:12.960 --> 0:06:16.720 contractors should be paid in phases exactly. 0:06:17.960 --> 0:06:18.239 Yeah. 0:06:18.279 --> 0:06:20.600 And you know what, in this era, people are more 0:06:20.640 --> 0:06:23.440 protected than we was in the beginning because when you 0:06:23.480 --> 0:06:26.800 get funding, they would normally say, okay. Back in the day, 0:06:26.800 --> 0:06:28.400 it's like, oh, it's seventy thousand dollars to get it done. 0:06:28.400 --> 0:06:29.960 They give you seventy thousand, Well, we know we ain't 0:06:29.960 --> 0:06:31.480 gonna get the job done. Got to get the car 0:06:31.520 --> 0:06:33.839 and to watch, you know what I mean, Maybe we 0:06:33.920 --> 0:06:35.480 get the job done later, you know what I'm saying. 0:06:35.520 --> 0:06:38.640 So now and it's like, okay, one, you gotta put 0:06:38.640 --> 0:06:40.160 your own money up. I don't know if y'all know that. 0:06:40.279 --> 0:06:42.080 So let's say let's say you get one hundred thousand 0:06:42.120 --> 0:06:44.640 dollars to do you ever rehab, right, the first phase 0:06:44.720 --> 0:06:46.840 is twenty five thousand, Well, you gotta get twenty five 0:06:46.880 --> 0:06:47.480 thousand dollars. 0:06:47.360 --> 0:06:48.120 Worth of work done. 0:06:48.760 --> 0:06:50.800 Then they come out and expect it and see it's 0:06:50.800 --> 0:06:53.600 twenty five thousands were for work done. Then they reimburse 0:06:53.680 --> 0:06:58.120 you construction loans or reimbursement loans now, which protects everybody 0:06:58.160 --> 0:07:02.560 because I watch this a contractor right, you give me 0:07:02.640 --> 0:07:06.159 twenty five thousand dollars, I don't do no work. Right, 0:07:06.680 --> 0:07:08.760 You burnt out of the twenty five thousand, but you're 0:07:08.800 --> 0:07:11.800 not burnt out of the whole hundred thousand. You understand. 0:07:11.880 --> 0:07:15.040 You gotta chat. You got an opportunity to recoup. Now 0:07:15.280 --> 0:07:17.720 the banks is not out of nothing because you paid 0:07:17.760 --> 0:07:21.240 for the first phase, gotcha, So you. 0:07:21.160 --> 0:07:22.480 Don't have to mess the loan up. 0:07:22.520 --> 0:07:25.200 So let's say if if a contract to get low 0:07:25.280 --> 0:07:28.800 on you in the first phase, well what the lender 0:07:28.840 --> 0:07:30.640 didn't give you no money on the first phase because 0:07:30.680 --> 0:07:32.680 as they come and inspect, the work is not done. 0:07:32.800 --> 0:07:36.120 That's another way. You know. Pulling permits will save you too, 0:07:36.360 --> 0:07:39.080 because you have to get city inspections and you have 0:07:39.080 --> 0:07:40.280 to get inspections. 0:07:39.800 --> 0:07:40.200 From the bank. 0:07:40.440 --> 0:07:43.760 You said something about having permits after every phase. 0:07:43.560 --> 0:07:45.680 After every phase, so you got to get permits and 0:07:45.720 --> 0:07:49.000 plans to go in right, demo alterations. After you demo, 0:07:49.240 --> 0:07:50.920 they got to come out and inspect it. And you 0:07:51.000 --> 0:07:54.320 want to frame it, frame the alterations, permit boom. After 0:07:54.320 --> 0:07:57.040 you frame it, you get inspections. Then you got mechanicals, 0:07:57.160 --> 0:08:00.960 electric plumbing, h BAG. After each McCay, you gotta get 0:08:01.040 --> 0:08:03.760 electrical inspected to come and inspect electrical. They can put 0:08:03.760 --> 0:08:05.760 a sticker on your window this hours in Philly to 0:08:05.840 --> 0:08:07.720 give you a stick that's saying you pass electrical. Then 0:08:07.720 --> 0:08:10.920 a regular city inspector comes back out and inspects the 0:08:10.920 --> 0:08:14.520 plumbing and the hvact boom. You get clear to do that. 0:08:14.800 --> 0:08:16.760 Now you can close the walls. You don't need a 0:08:16.880 --> 0:08:19.280 permit to close the walls. You just need to inspect. 0:08:19.280 --> 0:08:22.040 You didn't need to permit for the beginning to start 0:08:22.280 --> 0:08:26.240 the demo, the framing and the mechanicals. After that, once 0:08:26.240 --> 0:08:28.480 you close the walls up and everything is done, they 0:08:28.520 --> 0:08:30.640 do it's called the final inspection, signed off on it, 0:08:31.320 --> 0:08:32.520 and that's it and you ready to go. 0:08:32.800 --> 0:08:35.000 So like the two O three K loan, which is 0:08:35.040 --> 0:08:36.880 a renovation loan from a bank, the. 0:08:36.840 --> 0:08:38.760 Card is loan in the world. No contract don wants 0:08:38.800 --> 0:08:42.960 to deal with that. It's too extensive and it's too 0:08:43.160 --> 0:08:48.000 tight the government. It's not like the government. It's a 0:08:48.040 --> 0:08:50.600 lot to get your money for a contractor. Yeah, it's 0:08:50.640 --> 0:08:52.600 a lot for a contractor, a lot of contracts on 0:08:52.679 --> 0:08:54.800 Like you got some contractors that are just specializing that. 0:08:55.080 --> 0:08:57.000 Then you got some contractors down they don't want to 0:08:57.040 --> 0:08:59.520 deal with that. So it's because it's too much easy money. 0:08:59.720 --> 0:09:00.880 That's I'm thinking to myself. 0:09:00.920 --> 0:09:02.880 It's great for the person who's trying to get the home, 0:09:02.960 --> 0:09:04.439 not so great for the guy who's trying to say 0:09:04.480 --> 0:09:06.240 exactly exactly. 0:09:05.920 --> 0:09:09.480 So what kind of financing do most contractors? Obviously cash, 0:09:09.480 --> 0:09:11.640 but the majority of people don't have enough cash to 0:09:11.640 --> 0:09:12.200 pay somebody. 0:09:12.240 --> 0:09:15.560 So right now, people staying away from banks like the 0:09:15.600 --> 0:09:18.400 reason that the market is not really gonna tank. It 0:09:18.480 --> 0:09:20.200 might slow up and shift, but it's not gonna tank 0:09:20.240 --> 0:09:22.800 because people are not over exposed with these banks. People 0:09:22.800 --> 0:09:25.960 are dealing with private lenders. Hard money hard money, not 0:09:26.000 --> 0:09:28.080 really hard money, and private lending is two different things. 0:09:28.240 --> 0:09:30.760 What's the probably a private private lend is just a 0:09:30.800 --> 0:09:32.719 group of people like us, you know what I mean. 0:09:32.720 --> 0:09:35.280 We might got twenty million dollars, we're gonna lend on 0:09:35.320 --> 0:09:37.360 it with eight percent interests on it, and we're gonna 0:09:37.360 --> 0:09:39.679 make some money right together collectively a group of us 0:09:39.800 --> 0:09:42.880 friends heard money lens is different. They're kind of the same, 0:09:43.200 --> 0:09:46.160 but they are a little more extensive on the requirements 0:09:46.160 --> 0:09:48.240 in the criteria, you know what I mean. Hard money 0:09:48.320 --> 0:09:49.880 lenders come a little they come a little harder, you 0:09:49.920 --> 0:09:52.600 know what I mean. Like, you know one false moved, 0:09:52.360 --> 0:09:54.400 we own that, you know what I mean? 0:09:55.480 --> 0:09:58.000 Yeah? What about the job, like the materials for the job. 0:09:58.160 --> 0:09:59.480 Is there a strategy that you. 0:09:59.480 --> 0:10:01.640 Use or you buying in bulk or this is what 0:10:01.679 --> 0:10:04.319 I do? Build a relationship. I don't care. Don't think 0:10:04.360 --> 0:10:06.600 you can't build a relationship with a corporation. I spent. 0:10:06.720 --> 0:10:09.680 I spend over a million dollars a year in home depot, 0:10:10.360 --> 0:10:12.839 so I got a great relationship with them. I'm getting 0:10:12.840 --> 0:10:15.000 everything with like a three percent markup on some things. 0:10:15.480 --> 0:10:17.760 So where let's say sheet, where I costs eleven dollars 0:10:17.840 --> 0:10:20.360 a sheet, I'm paying like seven dollars and thirty cent, 0:10:21.240 --> 0:10:23.040 you know what I mean. So I get discounts because 0:10:23.080 --> 0:10:25.400 the more money I spend there, the more discounts I get. 0:10:25.760 --> 0:10:26.760 How did you establish that? 0:10:27.440 --> 0:10:30.240 I went through what's called a pro rewards account, and 0:10:30.960 --> 0:10:33.720 I get two percent off of everything I spend every 0:10:33.760 --> 0:10:37.280 six months. So if I spend five hundred thousand dollars, 0:10:37.280 --> 0:10:39.680 I get two percent of that and six months and 0:10:39.840 --> 0:10:41.640 I spend another five hundred thousand. I get two percent 0:10:41.679 --> 0:10:44.120 of that, So I get that, I get discount on pain. 0:10:44.200 --> 0:10:46.280 But it's just for everybody, Like, these are just programs 0:10:46.320 --> 0:10:48.199 that they offer. When you're a contractor, you got to 0:10:48.240 --> 0:10:50.320 get into You can't just go in there and spend money 0:10:50.320 --> 0:10:52.400 like every day person. Because you spending a lot of money, 0:10:52.520 --> 0:10:53.880 you want to get the discount. So you want to 0:10:53.880 --> 0:10:55.400 find out what programs available. 0:10:55.920 --> 0:11:00.440 So what is the most important part of rehabbing house? Like, 0:11:00.520 --> 0:11:02.280 is it the walls? Is the floor? Like, what's gonna 0:11:02.320 --> 0:11:03.640 make the house the most valuable? 0:11:03.960 --> 0:11:10.280 Kitchen, the kitchen, the bathrooms, the x steria, curb of 0:11:10.360 --> 0:11:15.800 pill the extra amenities, finished basement, hardwood floors throughout. What 0:11:15.960 --> 0:11:18.880 kind of towel you use, what kind of light fixtures 0:11:18.920 --> 0:11:22.000 you use, Just just the little stuff that catch people 0:11:22.000 --> 0:11:23.840 at Because I'm gonna be honest with you, I could 0:11:23.840 --> 0:11:25.920 strip a house down to the bare bone, right, strip 0:11:25.960 --> 0:11:26.960 it all the way down. That's what we do. We 0:11:26.960 --> 0:11:28.560 strip it all the way down to the brick and 0:11:28.640 --> 0:11:31.760 frame it up and do all new electric, plumbing, hpect, everything, 0:11:31.800 --> 0:11:34.480 sheet rock, everything brand new. And people noticed one little 0:11:34.559 --> 0:11:37.760 nick on that wall, Oh what's a little paints right here? 0:11:38.200 --> 0:11:38.319 You know? 0:11:38.360 --> 0:11:38.679 What I mean. 0:11:38.679 --> 0:11:40.800 I just we built this whole house. Like I had 0:11:40.800 --> 0:11:43.360 a guy. We had built the deck one time and 0:11:43.400 --> 0:11:45.840 the deck, the back of the deck had leaked, and 0:11:45.880 --> 0:11:48.200 he said he caught me, like you know, he was like, Yo, 0:11:48.240 --> 0:11:49.680 you gotta get down there real quick. I'm like, what's 0:11:49.679 --> 0:11:51.520 the matter. I got this man's leaking in here. So 0:11:51.520 --> 0:11:53.160 I come, I look at the back of the deck 0:11:53.240 --> 0:11:55.800 is leaking. I mean, he irate, what are we gonna do? 0:11:55.880 --> 0:11:56.440 What we gonna do? 0:11:56.480 --> 0:11:58.760 So said, he said, man, what are you laughing at? 0:11:59.000 --> 0:12:01.520 I said, you watch me build this whole house from ship, 0:12:02.760 --> 0:12:05.680 excuse me, from nothing, and you complaining about that little 0:12:05.679 --> 0:12:07.360 teeny leak. And that's how I was able to calm 0:12:07.400 --> 0:12:08.920 me down. I'm like, bro, you watched me build this 0:12:08.920 --> 0:12:11.599 whole house like this was a bandominium, you know what 0:12:11.640 --> 0:12:14.560 I mean. Like you know what I mean. You watch 0:12:14.600 --> 0:12:16.160 me put it back together, you know what I mean? 0:12:16.240 --> 0:12:19.800 But people, like I said, people only see the small things. 0:12:19.800 --> 0:12:21.600 They could see, Oh it's a nick in the walld, 0:12:21.640 --> 0:12:24.760 this is crooked, And we just built this whole entire house, 0:12:24.800 --> 0:12:25.319 you know what I mean. 0:12:25.400 --> 0:12:30.000 So so from a contractor standpoint, because you're you're interesting, 0:12:30.040 --> 0:12:32.840 because you're an investor and you're a contractor, right, right, 0:12:32.880 --> 0:12:35.720 So we talk about a lot. I realized we've never 0:12:35.760 --> 0:12:39.440 really looked at it from that standpoint, like from a contractor, like, 0:12:40.160 --> 0:12:43.320 how how do they go about as far as structuring 0:12:43.320 --> 0:12:46.439 their business model like you have a like how do 0:12:46.520 --> 0:12:50.040 they find clients? How do they like a. 0:12:49.960 --> 0:12:52.000 Lot of time clients? Let me let me just real 0:12:52.080 --> 0:12:55.200 quick because I'm gonna tell you something about contractors, just 0:12:55.200 --> 0:12:58.720 how we lose big with contractors. A contract to give assessment. 0:13:00.000 --> 0:13:03.080 I want one hundred thousand dollars to fix your house, and. 0:13:03.000 --> 0:13:03.760 You beat them up. 0:13:04.000 --> 0:13:05.960 No, I can't do one hundred. I could do sixty two, 0:13:06.640 --> 0:13:08.240 sixty two. I can't do it for sixty two. I 0:13:08.240 --> 0:13:10.280 could do it for ninety five. Man, I can't. I 0:13:10.280 --> 0:13:11.160 could do it for sixty two. 0:13:11.240 --> 0:13:11.600 That's it. 0:13:12.240 --> 0:13:15.200 The man commit to sixty two thousand, You get him 0:13:15.200 --> 0:13:15.720 a deposit? 0:13:15.760 --> 0:13:16.160 What do you do? 0:13:16.920 --> 0:13:21.400 Never come back? Right? You know why, because there's no 0:13:21.400 --> 0:13:23.280 way he's gonna get the job number sixty two thousand. 0:13:23.280 --> 0:13:25.959 He told you how much the job costs, but he 0:13:26.040 --> 0:13:29.199 took the money. A lot of times you get contracts 0:13:29.200 --> 0:13:32.000 that take a deposit and just use jobs like that 0:13:32.040 --> 0:13:34.080 as cash for like, you know what, I'll make the 0:13:34.080 --> 0:13:36.320 difference up somewhere else. I just need this money right now, 0:13:36.400 --> 0:13:39.000 so far and so on. But if you get a 0:13:39.080 --> 0:13:42.520 GC that come through and give you the number, instead 0:13:42.520 --> 0:13:44.640 of beating up on him, just get a couple of estimates. 0:13:44.679 --> 0:13:48.280 If it's in the same ballpark, do not try to 0:13:48.400 --> 0:13:50.199 knock that man down. So you go home and say, yo, 0:13:50.200 --> 0:13:51.839 I got hiven do it for sixty two, and then 0:13:51.880 --> 0:13:53.080 next week you ain't hear it from him. 0:13:53.120 --> 0:13:55.120 No, they go, you're sixty two exactly. 0:13:55.240 --> 0:13:58.400 So when you do these full gut rehabs right and 0:13:58.440 --> 0:14:02.200 you walk in, I mean you're seeing how the land 0:14:02.280 --> 0:14:03.480 you're gonna landscape this thing out? 0:14:03.559 --> 0:14:05.400 Is there an architect that works with you? 0:14:05.440 --> 0:14:07.760 Like, are not me? Who's doing me? 0:14:07.760 --> 0:14:07.840 Me? 0:14:08.320 --> 0:14:11.080 Everything you see in my house is me when I 0:14:11.160 --> 0:14:12.760 got a house out, Like if I ripped this house 0:14:12.760 --> 0:14:15.600 out right now, if I ripped the building out, we like, 0:14:15.720 --> 0:14:16.839 I can visualize whatever. 0:14:18.080 --> 0:14:20.320 This episode is brought to you by P and C Bank. 0:14:20.720 --> 0:14:23.480 A lot of people think podcasts about work are boring, 0:14:23.720 --> 0:14:27.560 and sure they definitely can be, But understanding a professional's 0:14:27.640 --> 0:14:30.480 routine shows us how they achieve their success little by 0:14:30.560 --> 0:14:34.440 little day after day. It's like banking with P and 0:14:34.480 --> 0:14:37.400 C Bank. It might seem boring to safe plan and 0:14:37.440 --> 0:14:40.800 make calculated decisions with your bank, but keeping your money 0:14:40.800 --> 0:14:44.280 boring is what helps you live or more happily fulfilled life. 0:14:44.560 --> 0:14:48.360 P and C Bank Brilliantly Boring since eighteen sixty five. 0:14:49.120 --> 0:14:52.200 Brilliantly Boring since eighteen sixty five is a service mark 0:14:52.240 --> 0:14:55.120 of the PNC Financial Service Group, Inc. P and C 0:14:55.280 --> 0:14:58.720 Bank National Association Member FDIIC. 0:15:01.200 --> 0:15:01.960 Earners. What's Up? 0:15:02.040 --> 0:15:04.520 You ever walk into a small business and everything just 0:15:04.680 --> 0:15:07.880 works like the checkout is fast, the receipts are digital, 0:15:08.400 --> 0:15:11.360 tipping is a breeze, and you're out the door before 0:15:11.360 --> 0:15:15.520 the line even builds. Odds are they're using Square. We 0:15:15.680 --> 0:15:18.240 love supporting businesses that run on Square because it just 0:15:18.280 --> 0:15:21.520 feels seamless. Whether it's a local coffee shop, a vendor 0:15:21.560 --> 0:15:23.680 at a pop up market, or even one. 0:15:23.560 --> 0:15:24.680 Of our merch partners. 0:15:24.920 --> 0:15:28.680 Square makes it easy for them to take payments, manage inventory, 0:15:28.800 --> 0:15:32.680 and run their business with confidence, all from one simple system. 0:15:33.160 --> 0:15:35.760 If you're a business owner or even just thinking about 0:15:35.800 --> 0:15:38.920 launching something soon, Square is hands down one of the 0:15:38.960 --> 0:15:42.400 best tools out there to help you start run and grow. 0:15:42.680 --> 0:15:45.680 It's not just about payments, It's about giving you time 0:15:45.760 --> 0:15:48.680 back so you can focus on what matters most Ready 0:15:48.720 --> 0:15:52.120 to see how Square can transform your business, visit Square 0:15:52.200 --> 0:15:56.720 dot com backslash go backslash eyl to learn more that 0:15:56.920 --> 0:16:02.360 Square dot com backslash, go backslash euyl. Don't wait, don't hesitate. 0:16:02.480 --> 0:16:04.840 Let's Square handle the back end so you can keep 0:16:04.880 --> 0:16:07.320 pushing your vision forward. 0:16:08.360 --> 0:16:11.960 An illegal alien from Guatemala charged with raping a child 0:16:12.040 --> 0:16:15.840 in Massachusetts. An MS thirteen gang member from Al Salvador 0:16:16.080 --> 0:16:20.200 accused of murdering a Texas man of Venezuelan charged with 0:16:20.280 --> 0:16:24.200 filming and selling child pornography in Michigan. These are just 0:16:24.280 --> 0:16:28.040 some of the heinous migrant criminals caught because of President 0:16:28.080 --> 0:16:31.680 Donald J. Trump's leadership. I'm Christy Noman, the United States 0:16:31.680 --> 0:16:36.480 Secretary of Homeland Security. Under President Trump, Attempted illegal border 0:16:36.520 --> 0:16:40.040 crossings are at the lowest levels ever recorded, and over 0:16:40.120 --> 0:16:43.320 one hundred thousand illegal aliens have been arrested. If you 0:16:43.400 --> 0:16:47.280 are here illegally, your next you will be fined nearly 0:16:47.360 --> 0:16:51.360 one thousand dollars a day, imprisoned, and deported. You will 0:16:51.400 --> 0:16:55.040 never return. But if you register using our CBP home 0:16:55.080 --> 0:16:57.960 app and leave now. You could be allowed to return 0:16:58.080 --> 0:17:03.560 legally do what's right. Leave now. Under President Trump, America's laws, 0:17:03.760 --> 0:17:06.160 border and families will be protected. 0:17:06.280 --> 0:17:08.399 Sponsored by the United States parting at Homeland Security. 0:17:08.520 --> 0:17:10.639 We room where I wanted that. I've been doing it 0:17:10.680 --> 0:17:12.800 that once you walk in. Yeah, like I would love 0:17:12.800 --> 0:17:14.600 for y'all come down one day and see me do it. 0:17:15.240 --> 0:17:16.720 I come down and run with me and see me 0:17:16.760 --> 0:17:19.160 do it. But I could rip this whole house out 0:17:19.200 --> 0:17:21.159 and just be As a matter of fact, if you 0:17:21.160 --> 0:17:23.920 look at my Instagram, you'll see me laying out. Yeah, 0:17:24.080 --> 0:17:25.439 that's what I do. I'll visual when you. 0:17:25.480 --> 0:17:27.280 Walk in, you're visually seeing like you know what, I 0:17:27.280 --> 0:17:28.600 can see an open floor space. 0:17:28.920 --> 0:17:30.879 That's gonna be two bedrooms up here. We're gonna put 0:17:30.920 --> 0:17:32.600 the basement. We're gonna add a wall. Yeah. 0:17:33.040 --> 0:17:34.920 Well, when you do so many of them, most of 0:17:34.960 --> 0:17:37.400 them become a cookie cutter. It's four or five different styles. 0:17:37.800 --> 0:17:39.119 When you do so many of them, you know what 0:17:39.119 --> 0:17:42.000 I mean. I'm doing hundreds of houses yearly, you know 0:17:42.040 --> 0:17:43.480 what I mean. So I got stuff going on in 0:17:43.520 --> 0:17:46.480 different cities that in Cleveland, I don't I don't knock 0:17:46.560 --> 0:17:49.280