Speaker 1: Welcome to how to Money. I'm Joel and I'm Matt
Speaker 1: today or discussing small time real estate investing with money
Speaker 1: pro Cad Carson. Joel, did you see the link that
Speaker 1: I sent to you earlier today. Yeah, I'm fancy he
Speaker 1: looking cargo bike. Yeah. I came across that and I
Speaker 1: thought that was the coolest design. It's currently on an
Speaker 1: Indie Go Go. Uh, some guy in Germany or a
Speaker 1: company is actually making it. But man, when I see
Speaker 1: cool bike designs like that, it just gets me super
Speaker 1: stoked about bike culture. Makes me want to ride my bike,
Speaker 1: get the girls on the cargo bike right around town,
Speaker 1: hang out with you and the girls, maybe hit up
Speaker 1: a brewery. You know what I'm saying. I totally know
Speaker 1: what you're saying. And for our listeners that don't know
Speaker 1: what a cargo bike is, we should explain a cargo
Speaker 1: bike is essentially there. They make them in different forms
Speaker 1: and fashions. There are a lot of fun and they
Speaker 1: can actually cut down on a lot of your car
Speaker 1: driving because a cargo bike oftentimes has a hard tail
Speaker 1: on the back that extends off the bike like an
Speaker 1: extra long bike for for storage. And so you and
Speaker 1: I we can put multiple kids on the back of ours,
Speaker 1: or or we can go to the grocery store and
Speaker 1: load up on stuff and bring it back. We can
Speaker 1: even go to lows and bring home some lumber, whatever
Speaker 1: it is. You can toss that stuff on the cargo bikes,
Speaker 1: trap it down and it's just super versatile, which is
Speaker 1: which is just nice for people, especially if you live
Speaker 1: in town. I would say, cargo bikes can really minimize
Speaker 1: your car trips and and so, yeah, I like this.
Speaker 1: We'll put a link to this indieo go page specifically
Speaker 1: because I want them to succeed. Yeah, yeah, and maybe
Speaker 1: we should put a link to the cargo bikes that
Speaker 1: you and I both ride too. I ride an electric
Speaker 1: one and you ride a non electric one. They both
Speaker 1: just I feel like, been game changers in our lives.
Speaker 1: They're super fun to ride around on. I would say
Speaker 1: that's one of the main reasons, dude, why we have
Speaker 1: been able to maintain being a one car family with
Speaker 1: three kids. We've got three three girls and sometimes skates
Speaker 1: off doing something with her friends, and that means she
Speaker 1: has the van and if I need to get somewhere
Speaker 1: with the girls, I load them up on the bike.
Speaker 1: Oh I just thought something else, Well, have you been
Speaker 1: riding recently? I have. It's been bitterly cold. I trying
Speaker 1: to do it as much as poss it's been super cold.
Speaker 1: But we've talked about one of the reasons we love
Speaker 1: biking is because it slows you down right, because you're
Speaker 1: literally going slower than if you were zooming around in
Speaker 1: your car. And I was riding through the neighborhood. I
Speaker 1: had your daughter on the back of the bike with
Speaker 1: my daughter, getting ready to take them home, and I
Speaker 1: saw these two fence sections over at the neighbor's house
Speaker 1: that have been there. I know I've seen them before,
Speaker 1: but I was never going that slow because it's up
Speaker 1: a big hill, and it clicked in my mind, Oh
Speaker 1: my gosh, they're gonna throw those brand new fence sections
Speaker 1: away to eight foot long fence sections that you buy
Speaker 1: at lows or home depot, and dude, I need a
Speaker 1: section of fence in our backyard. And had I not
Speaker 1: been on my bike slowing down, taking in my environment,
Speaker 1: I don't think I would have ever put it together
Speaker 1: that they were going to toss those And so yeah,
Speaker 1: I went over there after I dropped the girls off.
Speaker 1: She'd been meaning to put it up on next door
Speaker 1: like one of the websites, to get a neighbor to
Speaker 1: come get it because she didn't want to throw it
Speaker 1: away and she was happy to let me have it.
Speaker 1: And I brought this home. I've got I've got a
Speaker 1: fence ready to go. There we go. Man. I love
Speaker 1: that you're you have a really good eye for finding
Speaker 1: stuff on the curb. You're like the curb alert master.
Speaker 1: And uh so I feel like everyone should kind of
Speaker 1: keep their eye out, and it is easier on a
Speaker 1: bike to keep your eye out for stuff on the curb. Right, Yeah, man,
Speaker 1: that's right. Oh man, I want to tell you just
Speaker 1: kind of a funny story about losing my keys the
Speaker 1: other day. Yeah, so I went to meet a friend
Speaker 1: at a coffee shop. Didn't get coffee. Actually, I don't
Speaker 1: know if that's cheaper frugal. We could We're gonna play
Speaker 1: frugal cheap because I think that's a little bit cheap.
Speaker 1: It might be, but I had to I'd already had
Speaker 1: two cups that morning, so that's kind of why I
Speaker 1: avoided it. It It wasn't necessarily that I was afraid of
Speaker 1: spending the money, But you should have ordered a glass
Speaker 1: of hot water. I should have next time. But so
Speaker 1: I got out of the car and my my wife
Speaker 1: had been driving it, and she kind of left some
Speaker 1: trash in there. So I took the trash and I
Speaker 1: tossed it in the garbage and I went in to
Speaker 1: meet my friend and so we hung out for about
Speaker 1: an hour. I had a great conversation, and then I
Speaker 1: head out to the car. I'm feel in the pocket
Speaker 1: for my keys. I don't find my keys, and I'm
Speaker 1: getting a little nervous, and I locked the doors, and
Speaker 1: so I'm looking through the window. We live in the city.
Speaker 1: We locked the doors. Honestly, I don't normally lock the doors,
Speaker 1: so yeah, I don't. Well, I do at night, but
Speaker 1: like not during the day, not during the morning when
Speaker 1: I'm it's right out there in the packed parking lot.
Speaker 1: Heads up. If you're looking for anything that you want
Speaker 1: of Joels, you know where to find it exactly. So
Speaker 1: I was like peering through the windows to see if
Speaker 1: the key was in the ignition or in a place
Speaker 1: like in the seat or in the center console. I
Speaker 1: didn't see a key. So I'm like kind of baffled
Speaker 1: at this point that why wouldn't it be visible, right,
Speaker 1: it doesn't doesn't make any sense somewhere. So I started
Speaker 1: looking under the car and then I realized I threw
Speaker 1: stuff in the trash, didn't I. So I go back
Speaker 1: to the trash can right outside the front door. Look
Speaker 1: in there, pop it open, and the key shining brightly
Speaker 1: on top of everything too. Fortunately for me, man, I
Speaker 1: didn't even have to dig for it. It was awesome.
Speaker 1: So key was right there. I grabbed it and I
Speaker 1: was good to go. But it made me super nervous
Speaker 1: because you know how much locksmiths. Yeah, it could be
Speaker 1: such a difficult thing, right, just trying to find find
Speaker 1: a locksmith for a reasonable price. Man, speaking of you
Speaker 1: not ordering coffee this Barisa's are probably all right. First
Speaker 1: of all, this dude comes in, hangs out for an
Speaker 1: now or doesn't buy a coffee. Now he's thinking through
Speaker 1: the trash. Gross. I promise guys, next time, I'll totally
Speaker 1: get a latte. Okay, I will make it happen, because
Speaker 1: I don't want to mooch off the system for sure.
Speaker 1: I definitely don't want to be that guy. So the
Speaker 1: final part of the story, I went back inside to
Speaker 1: tell my buddy I found found the key. And I
Speaker 1: gave it a kiss and he was like, dude, that
Speaker 1: was in the carbage. That's disgusting. And you know what,
Speaker 1: I was so happy. I didn't really mind. It was fine.
Speaker 1: I'm surprised you didn't get sick. Yeah, lucky me. Right. So,
Speaker 1: so it's kind of funny. Uh, you wanta introduce our
Speaker 1: beer today? Sure? So yeah, Today on the show, we're
Speaker 1: gonna be drinking Cascade Brewing Primordial Noir, which is kind
Speaker 1: of a baller name a bourbon barrel aged Imperial red
Speaker 1: ale with cherries and spices and a listener Alex from
Speaker 1: Oregon sent this our way, so huge. Thanks to Alex
Speaker 1: for sending this beer on the show. And by the way,
Speaker 1: been a while since we've heard this sound. Matt, Yeah,
Speaker 1: fancy beer alert. I am extremely stoked because Cascade is
Speaker 1: one of my favorite breweries. They make some amazing sours,
Speaker 1: and specifically I am in love with their blueberry sour beer.
Speaker 1: That's and the saying no are this is? I guess
Speaker 1: another one of those uh in that line, Oh smells
Speaker 1: so good. I can't wait. All right, so I see
Speaker 1: you taking that sip. I'm gonna take this picture like
Speaker 1: I do every week. Yeah, I just dove in and
Speaker 1: had a sip and Matt, this is the delicious and
Speaker 1: the word I'm gonna use to describe the beer this
Speaker 1: week is bursting. Danga. Dude. Next time, I'm gonna go first,
Speaker 1: because that that one word is probably that was pretty
Speaker 1: close to what I was gonna say. Um, and so
Speaker 1: I will go with acidic. You know what I love
Speaker 1: to do, steal your thunder. Yeah, one of my one
Speaker 1: of my favorite things to do in life. All right, man,
Speaker 1: we'll talk more about this beer at the end of
Speaker 1: the show, but for now, let's get into the subject
Speaker 1: at hand. We're talking about small time real estate investing,
Speaker 1: and we brought on our friend and coach Chad Carson
Speaker 1: to be the money pro today to talk about this subject.
Speaker 1: And I think it's only appropriate that when you and
Speaker 1: I finally met Chad in person, it was at a brewery. Yes,
Speaker 1: exactly right. That was our first hang. We literally drove
Speaker 1: up to a hotel and we said, get in the car,
Speaker 1: we're gonna go get and that was the first hang
Speaker 1: we had. That's very true, and but honestly, that's the
Speaker 1: way a lot of people met us for the first time.
Speaker 1: It's kind of funny too because he is a former
Speaker 1: football player and he barely fit in the back of
Speaker 1: year MAS to five. But Chad, he's a former Clemson
Speaker 1: University football player. Man, he was a starting linebacker, so
Speaker 1: he didn't just sort of play, he legit played, and
Speaker 1: he was the defensive captain there. He graduated college in
Speaker 1: two thousand three with only one thousand dollars in the bank,
Speaker 1: and then he spent the next year scouting properties for
Speaker 1: other investors. He you know, he was doing the legwork,
Speaker 1: doing the research, starting on the ground floor, as it were, exactly, Yeah,
Speaker 1: that's right. And then through that he was able to
Speaker 1: save up enough cash to buy his very own first property.
Speaker 1: And his first place was a quadplex, so it had
Speaker 1: four units in it and he rented three those units
Speaker 1: out for four each, making total and his mortgage was
Speaker 1: even bucks, which means he was living for free and
Speaker 1: only that he was making a hunter bucks every single month.
Speaker 1: And that was right out of school. I love that, man. Yeah,
Speaker 1: getting paid to live, that's where it's at, right. So
Speaker 1: Chad has a lot to teach us about real estate.
Speaker 1: He has purchased over a hundred properties through the years,
Speaker 1: and at this point in his life. He's trying to
Speaker 1: de leverage and take on a little bit less and
Speaker 1: so he is an expert on going big with real
Speaker 1: estate and then desiring something smaller. So I think he's
Speaker 1: got a lot to teach us here and I'm really excited. Yeah,
Speaker 1: he does own a bunch of properties, and so that's
Speaker 1: what kind of interesting is Like he's focusing on the
Speaker 1: fact that you can simplify and still achieve the goals
Speaker 1: that you want to achieve. It doesn't mean that you
Speaker 1: you've got to go big. Instead, you can focus not
Speaker 1: just on getting bigger and growing your business or growing
Speaker 1: your portfolio, but focusing instead on your goals. And that's
Speaker 1: a lot of what he's gonna be talking about today
Speaker 1: is focusing on your goals. Yeah. And Chad actually wrote
Speaker 1: the book on this too, right, So he's yeah, a
Speaker 1: natural book. Right. So he's got a book called Retire
Speaker 1: Early with real Estate and I've read it and it's
Speaker 1: a really, really thorough book. It's so good and fantastic book. Honestly,
Speaker 1: for anyone just wanting to get into real estate investing,
Speaker 1: this is a fantastic read if you just kind of
Speaker 1: want to know more and you want to plumb the
Speaker 1: depths of what real estate investing is. This one book
Speaker 1: honestly will teach you everything you need to know. For me,
Speaker 1: I learned some new things as a real estate investor
Speaker 1: reading Chad's book and identified with a lot of things
Speaker 1: at the same time. And also in this book, Matt
Speaker 1: he profiles like two dozen people that have retired early
Speaker 1: through real estate and that's just kind of nice to
Speaker 1: see all these examples two of how people have done it,
Speaker 1: the different ways that they've done it, and so it's
Speaker 1: a it's an awesome book. Chad also has a new
Speaker 1: podcast which is really good at the same time, so
Speaker 1: he is crushing it. Yeah. What I love about his
Speaker 1: book too, is that he the way he talks and
Speaker 1: the way he explains things, it's just chill like. He's
Speaker 1: able to do it in such a way that it
Speaker 1: connects with you on a real life level. And that's
Speaker 1: what we love. I mean, that's what we try to
Speaker 1: do with our personal finances, and Chad does that with
Speaker 1: real estate. He's able to connect on a level that
Speaker 1: just feels familiar and that feels comfortable. I honestly think
Speaker 1: that he himself will be responsible for turning so many
Speaker 1: people into real estate investors who would not have done
Speaker 1: so had it not been for him. And honestly, he's
Speaker 1: gonna be responsible for turning people into thoughtful real estates
Speaker 1: exactly because there are so many people pitching something asking
Speaker 1: you to come to a ball room to learn a
Speaker 1: scheme or a way of investing in real estate. No
Speaker 1: money of your own right, no, no money down, And
Speaker 1: Chad's not about that. He's talking about a realistic way
Speaker 1: to invest, which you and I talked about on the show,
Speaker 1: which is to save your money and then make a
Speaker 1: substantial down payment, to know your location, all these things
Speaker 1: that we have talked about on different episodes of Real
Speaker 1: Estate Investing. Chad believes those very same things. And honestly,
Speaker 1: one of the reasons we brought Chad on is because
Speaker 1: we have such a similar philosophy and we love the
Speaker 1: way he approaches things and the way he talks about
Speaker 1: real estate investing just completely resonates with our experience and
Speaker 1: with our philosophy. And check out his website as well,
Speaker 1: coach Carson dot com. He has a fantastic online course
Speaker 1: that he offers to a site and personal one on
Speaker 1: one coaching. Yeah, Matt, and ultimately My favorite thing about
Speaker 1: what we're gonna tackle in this episode is the fact
Speaker 1: that you don't have to go big. You don't have
Speaker 1: to build this massive real estate empire. And I think
Speaker 1: sometimes that's the way people think about real estate investing. Well,
Speaker 1: what's the point in just having a couple of properties?
Speaker 1: And Chad says, you know what, No, you can make
Speaker 1: serious money by having just a few properties. You can
Speaker 1: retire early even with just a few properties, in doing
Speaker 1: it the right way. So we're gonna bring Chat on
Speaker 1: the show right off the break, and he's gonna give
Speaker 1: us five awesome minutes talking about why small time real
Speaker 1: estate investing is actually the way to go. All right, Joel,
Speaker 1: let's do this man. We're gonna hear from Chad, and
Speaker 1: right after that we're gonna break it all down. Hey, guys,
Speaker 1: thanks for having me on the show. Have you ever
Speaker 1: heard that expression go big or go home? Sort of
Speaker 1: that macho ex rush and you here sometimes it's a
Speaker 1: sports when I played football, and here in a lot
Speaker 1: in the real estate investing space too, and it's kind
Speaker 1: of like, you know, you haven't arrived until you've made
Speaker 1: you know, hundreds of real estate deals, or until you
Speaker 1: have like ten million dollars saved up and have a
Speaker 1: huge net worth, and you have an army of like
Speaker 1: employees or operations, and you've syndicated a bunch of real
Speaker 1: estate deals and used all these fancy words and fancy titles.
Speaker 1: You haven't arrived, and you can't kick back and enjoy
Speaker 1: life and go live on your yacht until you actually
Speaker 1: have gone big and made it. Obviously, you can tell this.
Speaker 1: This sort of bothers me a little bit. And I'll
Speaker 1: tell you why. Because when I was researching from my book,
Speaker 1: when I was looking back over my own experiences with
Speaker 1: real estate investing and using it to build wealth and
Speaker 1: retire early, you know, just getting to know people who
Speaker 1: actually had flexibility and had time. It's a really big
Speaker 1: contrast because the people I knew had very small but
Speaker 1: very effective portfolios, and some of the people I knew
Speaker 1: who had hundreds and hundreds of properties, who are so
Speaker 1: called successful people, had no time. They couldn't go on
Speaker 1: the same trips and have the same flexibility and do
Speaker 1: the same kinds of things in life that everybody talks about.
Speaker 1: Is so amazing, and so you know, I wanted you
Speaker 1: guys to rip on it a little bit, but I
Speaker 1: wanted to give some numbers just to make this idea
Speaker 1: a little more concrete. So let's say a couple the
Speaker 1: size they want to retire early and they want to
Speaker 1: use real estate, or even if they don't want to
Speaker 1: retire early, they just want to have some flexibility, you know,
Speaker 1: about ten fifteen years from now to do different things
Speaker 1: in life. And so they buy one rental property per year.
Speaker 1: And let's say this is in a decent neighborhood. It
Speaker 1: could be a single family house, could be a duplex,
Speaker 1: but it's in a in a location that they're very
Speaker 1: comfortable managing themselves if they need to. And let's just
Speaker 1: put some numbers on this. Let's say the property has
Speaker 1: a gross rent or a total we're in a fourteen
Speaker 1: hundred dollars per month, and that when you pay all
Speaker 1: of your operating expenses, so like, these are all your
Speaker 1: expenses except for the mortgage, which I'm gonna talk about
Speaker 1: why that's the case in a second. But you pay
Speaker 1: your taxes, your insurance owns your maintenance, your capital expense reserves,
Speaker 1: perhaps some management to help you manage the property. That
Speaker 1: when it's all left over after all those expenses, you
Speaker 1: have about eight hundred dollars per month left over before
Speaker 1: paying your mortgage, so about six hundred dollars and expenses.
Speaker 1: And I'm thinking of some particular properties that I owned
Speaker 1: that had those exact numbers. So this is a realistic
Speaker 1: thing to do. And so they buy those properties, one
Speaker 1: property per year for five years. And after five years, though,
Speaker 1: they decide to take all of their cash flow from
Speaker 1: those rentals, every bit of money money they can save
Speaker 1: up on their own and they start attacking the mortgages
Speaker 1: and paying them off and doing like a debt snowball
Speaker 1: or a debt tsunami, whatever. People call that different different
Speaker 1: names for that, but they're the objective is to get
Speaker 1: those things paid off as quickly as they can. And
Speaker 1: so let's say that takes them another ten years after
Speaker 1: those first five years to have a total about fifteen years.
Speaker 1: They were acquiring properties for five they're paying them off
Speaker 1: and manage them for the last ten years, and fifteen
Speaker 1: years later, which is a kind of amazing timeline when
Speaker 1: you think of out it to get to a really
Speaker 1: cool place in fifteen years. People don't normally talk about that.
Speaker 1: It seems like a really fast and then retirement years
Speaker 1: they have five properties paid off, free and clear, and
Speaker 1: think about what they've done. You know, if my math
Speaker 1: is right, you guys double check me. You know, eight
Speaker 1: hundred dollars per month on each property is about nine thousand,
Speaker 1: six hundred per year, and roughly, if you say five
Speaker 1: times nine thousand six d is about forty eight thousand
Speaker 1: dollars per year. And let's just use fifty bucks. That's
Speaker 1: a nice round number. Maybe it's appreciated a little bit.
Speaker 1: This couple now has fifty thousand dollars per year for
Speaker 1: the rest of their lives, and maybe more if they
Speaker 1: keep going up in value over time. But look at
Speaker 1: what else they've done. Instead of having this big, huge
Speaker 1: monster of a business that that takes over their lives,
Speaker 1: they have something that you guys probably know just like me.
Speaker 1: Managing five properties can be a very, very part time job.
Speaker 1: My wife and I and our two kids went to
Speaker 1: Ecuador with many more properties than that, but you know,
Speaker 1: having some flexibility and time, and we spent seventeen months
Speaker 1: living abroad with rental properties, and so having five rental
Speaker 1: properties can give you an enormous amount of flexibility time
Speaker 1: to start thinking about, you know, what I want to
Speaker 1: do when I grow up, what I want to do
Speaker 1: with the rest of my life, If you're forty five
Speaker 1: or you're fifty years old, like if all sorts of
Speaker 1: things you can do. And that's really the kind of
Speaker 1: the point of what I wanted to talk to you
Speaker 1: guys about with this is that you know, real estates
Speaker 1: the vehicle. The money is the vehicle. You know, what
Speaker 1: is it that people want to do with the rest
Speaker 1: of their life what matters to them. And my contention
Speaker 1: is that a nice, small, simple portfolio that pays you
Speaker 1: the money whatever it is, whe there's fifty hundred thousand,
Speaker 1: whatever the number is, that accomplishes your goals, that keeps
Speaker 1: things simple and lets you do the other things in
Speaker 1: your life that matter to you. So I want you
Speaker 1: guys to rip on that. Let me know what you
Speaker 1: think my off base on that should not not be
Speaker 1: bothered by the go big or go home? And can
Speaker 1: we get a T shirt that says go small or
Speaker 1: go home and start wearing that around? Thanks guys, talk
Speaker 1: to you later. Yeah, I love that, man, the million
Speaker 1: dollar T shirt idea go small or go home? You
Speaker 1: live wearing T shirt? Joel Saw, I know you'd be
Speaker 1: into that. Yeah, if he prints someone, I'll wear it. Yeah,
Speaker 1: I'm glad Chad brought that up right, the go big
Speaker 1: or go home saying right that where you haven't arrived
Speaker 1: until you've made tons of deals, millions and savings. You've
Speaker 1: got like the fancy syndication real estate deals. That is
Speaker 1: the mindset right that keeps everyday people from investing in
Speaker 1: real estate. And that's I guess what I was talking
Speaker 1: about earlier. He's on a mission to destroy that notion,
Speaker 1: because when that notion persists, that's when real estate investing
Speaker 1: seems like it's unattainable, because you hear people talking about how,
Speaker 1: oh I'm into real estate, or you hear somebody say, oh,
Speaker 1: my father he made all his money in real estate.
Speaker 1: Like it's a super boogie, like fancy life. You sit
Speaker 1: back in like this fancy leather chair at this enormous
Speaker 1: walnut desk. You've got the six balls hanging by the
Speaker 1: wires that bounce back and forth, like you know, like
Speaker 1: that whole thing. Actually he kicked up on the desk,
Speaker 1: smoking a cigar, wearing a fancy suit. Yeah, making phone calls.
Speaker 1: I agree. I think Chad's philosophy actually makes real estate
Speaker 1: investing feel more attained, feel more realistic, feel like it's
Speaker 1: less shrouded in secrecy. And I think if we kind
Speaker 1: of take Chad's advice and we decide to simplify the
Speaker 1: way that we invest in real estate by having a
Speaker 1: goal of only owning and operating a few properties between
Speaker 1: five and ten ten at most, I mean, ultimately, that's
Speaker 1: something that feels possible for a lot of people out there.
Speaker 1: And I think what's interesting too about what Chad said
Speaker 1: is that that go bigger, go home philosophy actually ends
Speaker 1: up preventing people from achieving the goals that they initially had.
Speaker 1: And so when we think about the episode that we
Speaker 1: did with Scott, the first money Pro episode we ever
Speaker 1: did creating your mission statement, Well, if we decided to
Speaker 1: take the big, go bigger, go home strategy, it might
Speaker 1: be a part of our mission statement to go big
Speaker 1: and to be the biggest real estate investor of all time. Right,
Speaker 1: that might be it. But that's your goal, then that's
Speaker 1: a part of what you're gonna be doing. Right. But
Speaker 1: there are so many people that say I'd like to
Speaker 1: dabble in real estate. I'd like to kind of figure
Speaker 1: it out and get a couple of properties under my
Speaker 1: belt and become a mom and pop kind of landlord.
Speaker 1: But maybe that's not good enough, Maybe that doesn't cut it,
Speaker 1: and they strive for more and more and more, and
Speaker 1: ultimately what they do is they end up creating a
Speaker 1: goal that doesn't align with their values, and they pursue
Speaker 1: something so hard at the expense of what really matters.
Speaker 1: And Chad's motto when it comes to this is invest
Speaker 1: in real estate, retire early, do what matters. Man. That's
Speaker 1: so simple, that's so easy to follow, and it's so
Speaker 1: helpful for anybody who's thinking about investing in real estate.
Speaker 1: It's not about being the biggest real estate investor in
Speaker 1: your area or owning twenty or more properties. You know what,
Speaker 1: Go small and then you can focus on what matters
Speaker 1: most to you. And like Chad said, he isn't about
Speaker 1: going big just for the sake of going big, because
Speaker 1: the people that he knew who had time, the flexibility,
Speaker 1: they're the ones who had the small And I love
Speaker 1: that he said this. But effective portfolios, right, not the
Speaker 1: investors with thousands of properties. And a big reason for
Speaker 1: that is that smaller portfolios are just easier to manage
Speaker 1: and you can buy better properties, but having fewer of
Speaker 1: them that can make your life so much easier, give
Speaker 1: you a lot more flexibility. It's kind of like mo money,
Speaker 1: more problems, more real estate, more problems, right, and more
Speaker 1: keys that you have to keep up with. And you're
Speaker 1: not very good at that. So that's true, So true, buddy.
Speaker 1: As we know, I'm a bad with keeping up with keys.
Speaker 1: So I wanted to kind of give an example from
Speaker 1: my life. This is kind of the way I've thought
Speaker 1: about it. My goal for a while was to buy
Speaker 1: a home every two years, and the way I would
Speaker 1: approach it was moving into the next home and running
Speaker 1: out my previous home. And that made it easier for
Speaker 1: me to buy a new home for a couple of reasons. One,
Speaker 1: I could put down less of a down payment. Down
Speaker 1: payment on a primary home usually get you the best
Speaker 1: possible rates with a mortgage lender, whereas if you're buying
Speaker 1: an investment property, you're gonna pay higher rates and they
Speaker 1: usually want down So for me, the goal is to
Speaker 1: move into a new house every two years and then
Speaker 1: rent out the previous property, and that's worked out really
Speaker 1: well for me through the years. And so what I
Speaker 1: would do was every time i'd buy a new property,
Speaker 1: I would bank the savings to save up for the
Speaker 1: next down payment for the next property. And at this point,
Speaker 1: I'm working with five doors that I manage, which is
Speaker 1: three single family homes and a duplex, And you know what,
Speaker 1: I'm taking the Chad Carson strategy, and I am so
Speaker 1: happy just to sit where I'm at for the time being.
Speaker 1: And you know what, that's not to say I'll never
Speaker 1: buy another rental property, but I'm really happy to have
Speaker 1: a small portfolio and I think it actually for me,
Speaker 1: it's easier and it's better, and I just want to
Speaker 1: like use that as an encouragement to people. Granted, not
Speaker 1: everyone's gonna be able to do it every two years.
Speaker 1: Maybe your goal is every four or five, right, And
Speaker 1: if you set that goal to buy a home every
Speaker 1: four or five years and to expand your portfolio slowly
Speaker 1: like that, that's okay too. But for me, that two
Speaker 1: year span felt doable in my market. But ultimately, knowing
Speaker 1: my limits and knowing my goals means I don't have
Speaker 1: to be constantly looking at real estate and I can
Speaker 1: actually kind of turn it off now that I feel
Speaker 1: like I'm at where I want to be when it
Speaker 1: comes to having this this small portfolio of like Chad said,
Speaker 1: effective properties. Yeah, I don't know what it says about me,
Speaker 1: but I've never wanted to have like a bunch of
Speaker 1: properties like I've got a few, right, We've got a
Speaker 1: few rentals. I've always known it's a great way, uh,
Speaker 1: specifically for us to bring in alternate sources of income
Speaker 1: with our come being very you know, up and down
Speaker 1: throughout the year. But yeah, man, beyond that, I don't
Speaker 1: know if that just says I'm not very ambitious or
Speaker 1: if I'm just super chill. Part of me doesn't really
Speaker 1: connect at all with the mindset of, oh I gotta
Speaker 1: get more and more, you know, I've got to get
Speaker 1: all these properties, and there are a lot of advantages
Speaker 1: that come with scale. Uh. I don't want to discount
Speaker 1: that at all. But yeah, I'm with you, man. At
Speaker 1: this point in my life, I'm quite content with what
Speaker 1: we've got going on right now and instead really focusing
Speaker 1: in on what are our goals And that's something that yeah,
Speaker 1: we've we've tackled previously. You mentioned Scott's episodes a few
Speaker 1: weeks ago, but I'm so glad we did that one first.
Speaker 1: We didn't really plan on it from like a philosophical standpoint,
Speaker 1: but starting with the mission statement and then from their
Speaker 1: progressing on with these additional episodes. It's so key because
Speaker 1: when you know your mission, when you know what it
Speaker 1: is that you're doing and why it is that you're
Speaker 1: seeking after that it just informs so much and tasks
Speaker 1: that may have seen sort of like the grind or
Speaker 1: things that where you felt like you just had to
Speaker 1: do it are put in a completely different lights, and man,
Speaker 1: that makes all the differ is in the world for me. Yeah, Man,
Speaker 1: I think that Chad strategy likens itself to the story
Speaker 1: of the tortoise and the hair, and going the route
Speaker 1: of the tortoise slow but sure you win the race,
Speaker 1: right and being the hair going as quickly as possible.
Speaker 1: There's so many potential obstacles going that direction that could
Speaker 1: mess you up. And so you know what, I want
Speaker 1: to be the tortoise in that scenario. It's gotta be flashy.
Speaker 1: And so now let's let's talk about the numbers right
Speaker 1: that he gave the example he talks about the couple
Speaker 1: that buys a rental property every year for five years
Speaker 1: and how they each bring in about fourteen hundred dollars
Speaker 1: and rents every month with about six hundred and expenses
Speaker 1: each and that's not counting the mortgage, and really, honestly,
Speaker 1: the mortgage payment doesn't matter because what he's focusing in
Speaker 1: on there is that there are six of expenses regardless
Speaker 1: if the house is paid off or not. He said
Speaker 1: that couple then starts paying off those mortgages as quickly
Speaker 1: as possible, which takes another ten years, so fifteen years total.
Speaker 1: And so fifteen years later they've got five properties paid
Speaker 1: off free and clear and are now pocketing about fifty
Speaker 1: thousand dollars every year. I love that, like it's an
Speaker 1: over amplification of everything at all associated or related. It's
Speaker 1: a real estate and he would admit that the same thing, right,
Speaker 1: he would. It's not quite that simple, but it's a
Speaker 1: good example to look to, and it does help us
Speaker 1: identify the fact that that is possible in a lot
Speaker 1: of markets for a lot of people. I granted, if
Speaker 1: you live in San Francisco or if you live in Brooklyn,
Speaker 1: New York, it's unlikely that you're gonna be able to
Speaker 1: buy a little bit different. But there are ways that
Speaker 1: you can take this strategy and kind of mold it
Speaker 1: to where you live. Chad lives in South Carolina, uh,
Speaker 1: and so it's a little bit easier there, Matt and
Speaker 1: I we live in Atlanta, and it's got a heck
Speaker 1: of a lot harder, a little bit tougher, But it depends.
Speaker 1: And at the same time, you also don't have to
Speaker 1: invest exactly where you live, right, so there are ways
Speaker 1: to invest in other parts of the country where you
Speaker 1: feel like this could work well for you. Yeah, that's right, man.
Speaker 1: And what I wanted to point out too, is that
Speaker 1: so he mentions this as an example, and it seems
Speaker 1: like such a no brainer, like you see it on
Speaker 1: paper and you think, oh, I could totally do that,
Speaker 1: or why doesn't everybody do this? Certainly it's not that easy.
Speaker 1: The fact is it's that simple on paper, right, And
Speaker 1: it's different between it being simple on paper versus you know,
Speaker 1: you living it out in real life. Is that in
Speaker 1: real life fifteen years is a long time, you know?
Speaker 1: And he points out he mentions how like, oh, yeah,
Speaker 1: in fifteen years in the context of retirement, that's no
Speaker 1: time at all. And it's not when you're looking at
Speaker 1: the long arc of saving for retirement, right, But fifteen
Speaker 1: years is still a very long time, especially if in
Speaker 1: your twenties you think, man, I've only been alive for
Speaker 1: fifteen plus five, like, like, that's not that's a long time.
Speaker 1: And that's what's so hard about this is keeping that
Speaker 1: in mind and not losing sight of what your goals are. Right.
Speaker 1: It's easy to say that's this is what we're gonna
Speaker 1: do for the next ten years, Like we've worked crazy hard,
Speaker 1: We've saved up the down payments. Next ten years, we're
Speaker 1: gonna knock this thing out. But that means for the
Speaker 1: next ten years, not only have you saved five years,
Speaker 1: like crazy, saving up dollars I guess every every two
Speaker 1: years for a down payment or more, but you're now
Speaker 1: spending the next ten years paying that off. And also
Speaker 1: during that ten years you're working really hard. You're probably
Speaker 1: saying no to nicer vacations or to like a tesla,
Speaker 1: because man, would be really nice to have a tesla.
Speaker 1: But I'm just gonna have to say no to that
Speaker 1: right now because we're focused on paying off these houses.
Speaker 1: That's what makes it so hard is actually living it
Speaker 1: out and reminding yourself of that every single day. Yeah,
Speaker 1: I think what's key, Matt. You said it's simple, and
Speaker 1: it is simple, but it's not easy. And so so
Speaker 1: many of the best financial concepts are exactly that. They're simple,
Speaker 1: but they're not easy. To actually implement them into your
Speaker 1: life takes some fortitude, takes the ability to say no
Speaker 1: to things today so you can save and invest for tomorrow,
Speaker 1: for the future. And this is a simple strategy, something
Speaker 1: that's easy to track with and you don't have to
Speaker 1: I love what Chad said, you don't have to know
Speaker 1: all the crazy terminology that most real estate investors throw around.
Speaker 1: And you and I we're all about that. We're not
Speaker 1: syndicating deals and we're not buying you know, massive apartment complexes,
Speaker 1: and you know what, we're just fine with that. We
Speaker 1: are more than happy to keep it simple. And it's
Speaker 1: not easy, right, It's not easy to buy a property
Speaker 1: every two years, But it is a simple formula and
Speaker 1: I love that simplicity. That's what we strive for in
Speaker 1: our lives, to keep it simple. And the more complex
Speaker 1: and investment is usually the more questions you have to
Speaker 1: ask about the person that's selling it to you. At
Speaker 1: the same time, and Matt, I have a question for you,
Speaker 1: Chad referred to this as being a manageable part time job,
Speaker 1: and you've got a few properties. I've got a few.
Speaker 1: I'd love to hear your thoughts. Is that accurate in
Speaker 1: your experience? Yeah, man, I don't have five properties, but
Speaker 1: I've almost got five. And it's not even close to
Speaker 1: a part time job. Like what's a part time job
Speaker 1: considered like fifteen twenty hours a week. No. I spend
Speaker 1: maybe two hours a week tops, And certainly that's averaged
Speaker 1: out because during seasons when you're going to be showing
Speaker 1: the property and you gotta get it ready for a listening,
Speaker 1: because you know you've had a tenant in there for
Speaker 1: three years, it's you're gonna spend more time on it.
Speaker 1: But don't forget those three years of that tendan being
Speaker 1: in there, not having moved, and they've paid on time,
Speaker 1: and you just don't have to worry about them. You've
Speaker 1: got the house automated and it's being taken care of.
Speaker 1: It truly is less than a part time job to
Speaker 1: manage this many properties. And and again you and I like,
Speaker 1: we don't have management. This is something that we're doing ourselves,
Speaker 1: where we're the ones making the call we're the one
Speaker 1: making sure rents getting paid and and this is a
Speaker 1: good thing. I think a lot of times people would
Speaker 1: might hear this and they think, we'll shoot, what am
Speaker 1: I gonna do with the rest of my time? I
Speaker 1: need to occupy myself. Well, that's what we're gonna talk
Speaker 1: about after the break. Chad talks about how when you
Speaker 1: have this additional time, you can start really thinking about
Speaker 1: what you want to do when you grow up. You know,
Speaker 1: he's kind of joking around, but I love that connotation
Speaker 1: because it's sort of like what we've done up until
Speaker 1: now is just sort of just kind of messing around.
Speaker 1: You know, you've got to earn some money. You know,
Speaker 1: you've gotta have a job. But now, like, let's dig deep.
Speaker 1: You kind of you're talking about real estate. Earlier about
Speaker 1: plumbing the depths of real estate made me think about
Speaker 1: going to a counselor and thinking about my soul and stuff.
Speaker 1: But like, that's what you get to do once you're
Speaker 1: able to achieve the stable financial footing, because then you
Speaker 1: can truly think about what it is that you want
Speaker 1: to spend the rest of your life doing. I love that, Matt.
Speaker 1: Let's get to the main takeaways for this episode after
Speaker 1: the break, all right, Juel, time for that main takeaway
Speaker 1: hit it. Yeah. I think what Chad is aiming for
Speaker 1: in this episode, like with his five minutes, is to
Speaker 1: tell us to focus on the things that actually matter
Speaker 1: in life and focus less on building an enormous business.
Speaker 1: Because most of us, if we're honest with ourselves, if
Speaker 1: we take the time to think about what matters to us,
Speaker 1: what we actually want to spend our time doing, it's
Speaker 1: not that we don't want to work at all, but
Speaker 1: that it's that we would like to work a little
Speaker 1: bit less and spend more time uh with the hobbies
Speaker 1: that we enjoy, with the people that matter. Chad gave
Speaker 1: the example two of this mini retirement that he took
Speaker 1: to Ecuador with his family seventeen months. He was able
Speaker 1: to leave this country still taking care of those rental
Speaker 1: properties from AFAR, but he was able to go cut
Speaker 1: his cost by living in a cheaper place and at
Speaker 1: the same time spend a heck of a lot more
Speaker 1: time with his family, which was incredibly fulfilling on all accounts.
Speaker 1: From from every story he's told about being an Ecuador
Speaker 1: with his family sounds like it was an awesome time
Speaker 1: for him, and most people can't dream of doing that,
Speaker 1: but this is a strategy to kind of help you
Speaker 1: get there. Ecuador, right, Yeah, Like that was his goal
Speaker 1: for him to take his girls there and to imm
Speaker 1: ast them into the Latin American culture, for them to
Speaker 1: learn Spanish. Is it his wife that's the Spanish teacher? Yeah?
Speaker 1: I think so, And I just think that's amazing that
Speaker 1: he was able to identify that as one of his
Speaker 1: goals and they did it. And that's the kind of
Speaker 1: thing that his family, his kids, his wife, they're going
Speaker 1: to share stories about that for the rest of their lives.
Speaker 1: That's kind of one of those like anchor moments, right,
Speaker 1: the anchor periods of time for his kids to to
Speaker 1: experience a different culture and to be immersed in a
Speaker 1: different language, and that's something that's seriously they will never
Speaker 1: stop talking about. And for those of us who are
Speaker 1: focused on just building the biggest business possible, we're totally
Speaker 1: missing out on stuff like that. One of the things
Speaker 1: I love that Chad mentioned is that real estate is
Speaker 1: the vehicle that can get you to your goals, you know,
Speaker 1: whatever they happen to be. Again, for them, it was
Speaker 1: Ecuador dude, I love that. Right, Money, it's just a vehicle.
Speaker 1: Real estate is just a vehicle to get you to
Speaker 1: where you want to go. It's a means to an end.
Speaker 1: It's not the end itself. And I think that's one
Speaker 1: of the ways that these folks with these massive real
Speaker 1: estate portfolios, maybe they've lost sight of what their actual
Speaker 1: end game is. They don't have that endgame in mind,
Speaker 1: and because of that, they think, oh, well, it used
Speaker 1: to make me happy when I would get another property,
Speaker 1: so I'm going to continue to do that. I'm gonna
Speaker 1: keep growing this empire. And instead, what they're doing is
Speaker 1: that they're on this treadmill and they're just going because
Speaker 1: they've they're going and they don't know when to stop,
Speaker 1: and they're just gonna keep doing what they've done. And so, yeah,
Speaker 1: I think keeping that in mind, that real estate it's
Speaker 1: the vehicle that gets you where you want to go,
Speaker 1: it's not the actual destination. Yeah, man, I think that
Speaker 1: Chad also gives us the ability to see that real
Speaker 1: estate can provide us what we call passive income. But
Speaker 1: at the same time, passive income doesn't mean that we
Speaker 1: don't have to work, right, So there is an idea
Speaker 1: that it is a part time job, like you said, York,
Speaker 1: a couple hours a week. There are some weeks that
Speaker 1: are more involved than others if you've got like a
Speaker 1: tenant turnover, so be prepared for that. Just know that
Speaker 1: it's not as simple as stock investing like we've talked
Speaker 1: about before. There are more things to consider. But all
Speaker 1: that being said, it's so much less involved than a
Speaker 1: part time job, and it it does allow you the
Speaker 1: flexibility that you're ultimately looking for, oftentimes by truly focusing
Speaker 1: on what actually matters and so mad At the beginning
Speaker 1: of the show, we talked about how Chad has a
Speaker 1: podcast and there was an example that he gave in
Speaker 1: a recent show, Oh tell Me I Haven't heard. He
Speaker 1: gave an example of three couples that decided to take
Speaker 1: a vacation together, and they all had different amounts of
Speaker 1: rental properties, and when it came time for their vacation,
Speaker 1: and one of the couple said, hey, you know what,
Speaker 1: this is a lot of fun. Let's keep going. Let's
Speaker 1: extend this for another couple of weeks. And he talked
Speaker 1: about just kind of different scenarios in which a couple
Speaker 1: could or couldn't do it. And I think he's completely
Speaker 1: spot on that if your goal is flexibility, that you
Speaker 1: can have maybe even a little bit less income, but
Speaker 1: you could still potentially afford to extend that vacation. But
Speaker 1: you know what, the more massive your real estate complex is,
Speaker 1: it's unlikely that you'll be able to get away from
Speaker 1: it for very long. And so just know that the
Speaker 1: bigger it is, the more attached at the hip to it,
Speaker 1: you're gonna be all right, man, let's get back to
Speaker 1: this beer. I'm gonna go first. My word was acidic,
Speaker 1: and that's because this beer was so intense, uh, I mean,
Speaker 1: just from cracking it open and pouring it, I could
Speaker 1: smell the the acidity, I could smell the flavor, the
Speaker 1: aggressiveness kind of wafting over the table. And you said bursting.
Speaker 1: As soon as you said bursting, the second world I
Speaker 1: thought of was gusher's like the gusher's candy. You know
Speaker 1: what I'm talking about? This totally, I mean, yeah, completely
Speaker 1: resonates gushers. It has that gusher bursting mouth fields. Yeah,
Speaker 1: but I mean, and so it's got cherries in it,
Speaker 1: but it's age and bourbon barrels and wine barrels, and
Speaker 1: so it gives it this very dark fruit flavor, but
Speaker 1: the acidity, man, it brings it alive, like it adds
Speaker 1: so much zip to it. And that makes this beer
Speaker 1: one of the best I've had in the past twelve months.
Speaker 1: I might even I might even be calling this beer
Speaker 1: right now my favorite beer of twenty nineteen. Wow. Yeah,
Speaker 1: I love it that much. This is the for me.
Speaker 1: This is a five star on Untapped Mike Drop. All Right,
Speaker 1: that's amazing. Yeah, this is completely up my alley. Yeah,
Speaker 1: I mean, I gotta be honest. This was a fantastic
Speaker 1: beer and it had this gusher like quality and it's
Speaker 1: got cherries in the beer and amazing tartness. For me,
Speaker 1: fruited sour beers are pretty much my favorites, and this
Speaker 1: was no disappointment at all. Huge thanks to Alex from
Speaker 1: Oregon for sending this one out. It was delicious, bursting
Speaker 1: with flavor, Juli, Thank you, Alex. All Right, Matt, let's
Speaker 1: move on to our final thoughts. Final thoughts, and ultimately
Speaker 1: Chad's philosophy resonates with me in a major way because
Speaker 1: what I want to do is live simply and focus
Speaker 1: on the things that truly matter and building an enormous
Speaker 1: real estate portfolio just doesn't align with that. But building
Speaker 1: a really small and effective one actually affords me more
Speaker 1: opportunity to do the things that I enjoy, spend time
Speaker 1: with the people that I want to. So I just
Speaker 1: want to encourage anybody out there who has thought about
Speaker 1: investing in real estate, who maybe has one property. You
Speaker 1: know what, this is a really good philosophy to go
Speaker 1: on because it's something that almost anybody can accomplish. It's
Speaker 1: just a simple method to follow, and there is so
Speaker 1: much to be said in this world of complexity for
Speaker 1: a simple method, and so yeah, I love it for
Speaker 1: all those reasons, Edjuel, And this makes me think of
Speaker 1: our episode and old episode episode twelve, where we talked
Speaker 1: about the why behind money. Identify what your goals are,
Speaker 1: and Chad's saying how real estate can get you there.
Speaker 1: It's a vehicle that can get you to whatever your
Speaker 1: goals are. It allows you to design the life that
Speaker 1: you want to live. And so don't be intimidated by
Speaker 1: this sort of mindset of having to amass this massive
Speaker 1: portfolio of a ton of properties. It doesn't have to
Speaker 1: be overcomplicated, and even simple guys like uh, myself and Joel,
Speaker 1: have you used real estate to help get us to
Speaker 1: where we want to be financially? Yeah? And HDTV might
Speaker 1: be fun entertainment, but you know what, it doesn't give
Speaker 1: you principles to invest in real estate by and I
Speaker 1: thought Chad did a great job of breaking it down
Speaker 1: for us on today's episode. Alright, so thanks everyone so
Speaker 1: much for listening. Our home on the web is how
Speaker 1: to Money dot com. You can find all of our
Speaker 1: prior episodes there too. If you're kind of new to
Speaker 1: the show and you're interested in learning more, well, we've
Speaker 1: got a whole backlog of shows, some about real estate
Speaker 1: and some about other stuff like cutting your grocery bill
Speaker 1: and saving on your cell phone. So check those out.
Speaker 1: And if you have enjoyed this podcast, we would love
Speaker 1: to hear from you. You could leave us or a
Speaker 1: view on Apple Podcasts. And we've been doing this new
Speaker 1: show now for a few weeks, the Money Pro episode,
Speaker 1: we would love to hear from you, your thoughts on
Speaker 1: you know, our guests, the format in general. We're always
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Speaker 1: and leave us a review. Alright, buddy, until next time,
Speaker 1: Best friends, Best Friends Out