WEBVTT - Small Time Real Estate Investing with $Pro Chad Carson #060 0:00:00.080 --> 0:00:03.040 Welcome to how to Money. I'm Joel and I'm Matt 0:00:03.360 --> 0:00:06.800 today or discussing small time real estate investing with money 0:00:06.800 --> 0:00:29.440 pro Cad Carson. Joel, did you see the link that 0:00:29.480 --> 0:00:31.560 I sent to you earlier today. Yeah, I'm fancy he 0:00:31.600 --> 0:00:33.879 looking cargo bike. Yeah. I came across that and I 0:00:33.880 --> 0:00:36.519 thought that was the coolest design. It's currently on an 0:00:36.520 --> 0:00:38.880 Indie Go Go. Uh, some guy in Germany or a 0:00:38.920 --> 0:00:41.320 company is actually making it. But man, when I see 0:00:41.479 --> 0:00:43.400 cool bike designs like that, it just gets me super 0:00:43.400 --> 0:00:46.360 stoked about bike culture. Makes me want to ride my bike, 0:00:46.360 --> 0:00:48.280 get the girls on the cargo bike right around town, 0:00:48.640 --> 0:00:50.280 hang out with you and the girls, maybe hit up 0:00:50.280 --> 0:00:52.320 a brewery. You know what I'm saying. I totally know 0:00:52.320 --> 0:00:54.120 what you're saying. And for our listeners that don't know 0:00:54.160 --> 0:00:56.360 what a cargo bike is, we should explain a cargo 0:00:56.360 --> 0:00:58.680 bike is essentially there. They make them in different forms 0:00:58.680 --> 0:01:00.400 and fashions. There are a lot of fun and they 0:01:00.400 --> 0:01:03.160 can actually cut down on a lot of your car 0:01:03.280 --> 0:01:06.600 driving because a cargo bike oftentimes has a hard tail 0:01:06.640 --> 0:01:09.240 on the back that extends off the bike like an 0:01:09.240 --> 0:01:12.200 extra long bike for for storage. And so you and 0:01:12.240 --> 0:01:14.280 I we can put multiple kids on the back of ours, 0:01:14.360 --> 0:01:15.959 or or we can go to the grocery store and 0:01:16.000 --> 0:01:17.880 load up on stuff and bring it back. We can 0:01:17.959 --> 0:01:19.959 even go to lows and bring home some lumber, whatever 0:01:20.000 --> 0:01:22.040 it is. You can toss that stuff on the cargo bikes, 0:01:22.040 --> 0:01:25.080 trap it down and it's just super versatile, which is 0:01:25.120 --> 0:01:27.360 which is just nice for people, especially if you live 0:01:27.800 --> 0:01:30.960 in town. I would say, cargo bikes can really minimize 0:01:31.000 --> 0:01:33.240 your car trips and and so, yeah, I like this. 0:01:33.280 --> 0:01:36.360 We'll put a link to this indieo go page specifically 0:01:36.400 --> 0:01:39.000 because I want them to succeed. Yeah, yeah, and maybe 0:01:39.000 --> 0:01:40.960 we should put a link to the cargo bikes that 0:01:41.040 --> 0:01:42.840 you and I both ride too. I ride an electric 0:01:42.880 --> 0:01:45.600 one and you ride a non electric one. They both 0:01:45.640 --> 0:01:48.640 just I feel like, been game changers in our lives. 0:01:48.720 --> 0:01:51.120 They're super fun to ride around on. I would say 0:01:51.160 --> 0:01:52.760 that's one of the main reasons, dude, why we have 0:01:52.840 --> 0:01:55.320 been able to maintain being a one car family with 0:01:55.480 --> 0:01:59.680 three kids. We've got three three girls and sometimes skates 0:01:59.720 --> 0:02:02.120 off doing something with her friends, and that means she 0:02:02.200 --> 0:02:03.840 has the van and if I need to get somewhere 0:02:03.880 --> 0:02:05.480 with the girls, I load them up on the bike. 0:02:05.600 --> 0:02:07.800 Oh I just thought something else, Well, have you been 0:02:07.880 --> 0:02:10.560 riding recently? I have. It's been bitterly cold. I trying 0:02:10.600 --> 0:02:12.280 to do it as much as poss it's been super cold. 0:02:12.720 --> 0:02:14.440 But we've talked about one of the reasons we love 0:02:14.480 --> 0:02:16.760 biking is because it slows you down right, because you're 0:02:16.760 --> 0:02:18.959 literally going slower than if you were zooming around in 0:02:19.000 --> 0:02:21.360 your car. And I was riding through the neighborhood. I 0:02:21.400 --> 0:02:23.160 had your daughter on the back of the bike with 0:02:23.200 --> 0:02:25.280 my daughter, getting ready to take them home, and I 0:02:25.320 --> 0:02:28.360 saw these two fence sections over at the neighbor's house 0:02:28.680 --> 0:02:30.760 that have been there. I know I've seen them before, 0:02:30.800 --> 0:02:33.360 but I was never going that slow because it's up 0:02:33.360 --> 0:02:35.639 a big hill, and it clicked in my mind, Oh 0:02:35.639 --> 0:02:37.720 my gosh, they're gonna throw those brand new fence sections 0:02:37.760 --> 0:02:41.320 away to eight foot long fence sections that you buy 0:02:41.360 --> 0:02:44.120 at lows or home depot, and dude, I need a 0:02:44.160 --> 0:02:47.400 section of fence in our backyard. And had I not 0:02:47.480 --> 0:02:50.280 been on my bike slowing down, taking in my environment, 0:02:50.600 --> 0:02:52.079 I don't think I would have ever put it together 0:02:52.120 --> 0:02:54.320 that they were going to toss those And so yeah, 0:02:54.360 --> 0:02:56.320 I went over there after I dropped the girls off. 0:02:56.360 --> 0:02:58.399 She'd been meaning to put it up on next door 0:02:58.480 --> 0:02:59.840 like one of the websites, to get a neighbor to 0:02:59.840 --> 0:03:01.160 come get it because she didn't want to throw it 0:03:01.160 --> 0:03:03.360 away and she was happy to let me have it. 0:03:03.440 --> 0:03:05.360 And I brought this home. I've got I've got a 0:03:05.360 --> 0:03:07.560 fence ready to go. There we go. Man. I love 0:03:07.600 --> 0:03:09.639 that you're you have a really good eye for finding 0:03:09.680 --> 0:03:12.320 stuff on the curb. You're like the curb alert master. 0:03:12.639 --> 0:03:14.880 And uh so I feel like everyone should kind of 0:03:14.960 --> 0:03:16.560 keep their eye out, and it is easier on a 0:03:16.560 --> 0:03:19.079 bike to keep your eye out for stuff on the curb. Right, Yeah, man, 0:03:19.080 --> 0:03:20.720 that's right. Oh man, I want to tell you just 0:03:20.760 --> 0:03:22.800 kind of a funny story about losing my keys the 0:03:22.840 --> 0:03:25.800 other day. Yeah, so I went to meet a friend 0:03:25.840 --> 0:03:28.839 at a coffee shop. Didn't get coffee. Actually, I don't 0:03:28.840 --> 0:03:32.160 know if that's cheaper frugal. We could We're gonna play 0:03:32.200 --> 0:03:34.200 frugal cheap because I think that's a little bit cheap. 0:03:34.560 --> 0:03:36.520 It might be, but I had to I'd already had 0:03:36.520 --> 0:03:38.120 two cups that morning, so that's kind of why I 0:03:38.160 --> 0:03:40.360 avoided it. It It wasn't necessarily that I was afraid of 0:03:40.360 --> 0:03:42.120 spending the money, But you should have ordered a glass 0:03:42.160 --> 0:03:45.320 of hot water. I should have next time. But so 0:03:45.760 --> 0:03:47.240 I got out of the car and my my wife 0:03:47.280 --> 0:03:49.040 had been driving it, and she kind of left some 0:03:49.280 --> 0:03:50.960 trash in there. So I took the trash and I 0:03:51.040 --> 0:03:53.280 tossed it in the garbage and I went in to 0:03:53.320 --> 0:03:55.480 meet my friend and so we hung out for about 0:03:55.520 --> 0:03:58.480 an hour. I had a great conversation, and then I 0:03:58.520 --> 0:04:00.760 head out to the car. I'm feel in the pocket 0:04:00.800 --> 0:04:04.160 for my keys. I don't find my keys, and I'm 0:04:04.160 --> 0:04:06.640 getting a little nervous, and I locked the doors, and 0:04:06.680 --> 0:04:08.600 so I'm looking through the window. We live in the city. 0:04:08.640 --> 0:04:11.440 We locked the doors. Honestly, I don't normally lock the doors, 0:04:11.480 --> 0:04:13.560 so yeah, I don't. Well, I do at night, but 0:04:13.600 --> 0:04:15.240 like not during the day, not during the morning when 0:04:15.240 --> 0:04:17.279 I'm it's right out there in the packed parking lot. 0:04:17.440 --> 0:04:19.479 Heads up. If you're looking for anything that you want 0:04:19.480 --> 0:04:22.919 of Joels, you know where to find it exactly. So 0:04:23.400 --> 0:04:24.960 I was like peering through the windows to see if 0:04:25.000 --> 0:04:27.159 the key was in the ignition or in a place 0:04:27.200 --> 0:04:29.400 like in the seat or in the center console. I 0:04:29.440 --> 0:04:31.680 didn't see a key. So I'm like kind of baffled 0:04:31.720 --> 0:04:34.359 at this point that why wouldn't it be visible, right, 0:04:34.520 --> 0:04:36.840 it doesn't doesn't make any sense somewhere. So I started 0:04:36.839 --> 0:04:40.880 looking under the car and then I realized I threw 0:04:40.920 --> 0:04:44.279 stuff in the trash, didn't I. So I go back 0:04:44.279 --> 0:04:46.719 to the trash can right outside the front door. Look 0:04:46.800 --> 0:04:50.240 in there, pop it open, and the key shining brightly 0:04:51.040 --> 0:04:53.240 on top of everything too. Fortunately for me, man, I 0:04:53.279 --> 0:04:55.400 didn't even have to dig for it. It was awesome. 0:04:55.440 --> 0:04:57.320 So key was right there. I grabbed it and I 0:04:57.360 --> 0:04:59.880 was good to go. But it made me super nervous 0:05:00.000 --> 0:05:03.599 because you know how much locksmiths. Yeah, it could be 0:05:03.640 --> 0:05:05.760 such a difficult thing, right, just trying to find find 0:05:05.760 --> 0:05:08.200 a locksmith for a reasonable price. Man, speaking of you 0:05:08.240 --> 0:05:10.600 not ordering coffee this Barisa's are probably all right. First 0:05:10.600 --> 0:05:12.479 of all, this dude comes in, hangs out for an 0:05:12.520 --> 0:05:14.480 now or doesn't buy a coffee. Now he's thinking through 0:05:14.480 --> 0:05:18.640 the trash. Gross. I promise guys, next time, I'll totally 0:05:18.680 --> 0:05:20.600 get a latte. Okay, I will make it happen, because 0:05:20.600 --> 0:05:22.279 I don't want to mooch off the system for sure. 0:05:22.400 --> 0:05:24.120 I definitely don't want to be that guy. So the 0:05:24.160 --> 0:05:25.680 final part of the story, I went back inside to 0:05:25.680 --> 0:05:27.960 tell my buddy I found found the key. And I 0:05:28.000 --> 0:05:29.800 gave it a kiss and he was like, dude, that 0:05:29.839 --> 0:05:33.520 was in the carbage. That's disgusting. And you know what, 0:05:33.600 --> 0:05:35.360 I was so happy. I didn't really mind. It was fine. 0:05:35.400 --> 0:05:38.880 I'm surprised you didn't get sick. Yeah, lucky me. Right. So, 0:05:38.880 --> 0:05:41.160 so it's kind of funny. Uh, you wanta introduce our 0:05:41.200 --> 0:05:43.520 beer today? Sure? So yeah, Today on the show, we're 0:05:43.560 --> 0:05:48.240 gonna be drinking Cascade Brewing Primordial Noir, which is kind 0:05:48.240 --> 0:05:51.640 of a baller name a bourbon barrel aged Imperial red 0:05:51.680 --> 0:05:55.480 ale with cherries and spices and a listener Alex from 0:05:55.480 --> 0:05:58.119 Oregon sent this our way, so huge. Thanks to Alex 0:05:58.120 --> 0:05:59.719 for sending this beer on the show. And by the way, 0:06:00.000 --> 0:06:03.799 been a while since we've heard this sound. Matt, Yeah, 0:06:03.920 --> 0:06:08.960 fancy beer alert. I am extremely stoked because Cascade is 0:06:09.000 --> 0:06:11.839 one of my favorite breweries. They make some amazing sours, 0:06:11.880 --> 0:06:16.239 and specifically I am in love with their blueberry sour beer. 0:06:16.760 --> 0:06:19.400 That's and the saying no are this is? I guess 0:06:19.440 --> 0:06:22.480 another one of those uh in that line, Oh smells 0:06:22.520 --> 0:06:24.400 so good. I can't wait. All right, so I see 0:06:24.400 --> 0:06:26.480 you taking that sip. I'm gonna take this picture like 0:06:26.520 --> 0:06:29.400 I do every week. Yeah, I just dove in and 0:06:29.400 --> 0:06:33.120 had a sip and Matt, this is the delicious and 0:06:33.200 --> 0:06:35.120 the word I'm gonna use to describe the beer this 0:06:35.160 --> 0:06:39.320 week is bursting. Danga. Dude. Next time, I'm gonna go first, 0:06:39.360 --> 0:06:42.679 because that that one word is probably that was pretty 0:06:42.680 --> 0:06:44.920 close to what I was gonna say. Um, and so 0:06:45.120 --> 0:06:47.720 I will go with acidic. You know what I love 0:06:47.760 --> 0:06:50.040 to do, steal your thunder. Yeah, one of my one 0:06:50.040 --> 0:06:51.880 of my favorite things to do in life. All right, man, 0:06:51.880 --> 0:06:53.440 we'll talk more about this beer at the end of 0:06:53.440 --> 0:06:55.839 the show, but for now, let's get into the subject 0:06:55.839 --> 0:06:58.719 at hand. We're talking about small time real estate investing, 0:06:58.720 --> 0:07:01.440 and we brought on our friend and coach Chad Carson 0:07:01.560 --> 0:07:03.520 to be the money pro today to talk about this subject. 0:07:03.800 --> 0:07:05.760 And I think it's only appropriate that when you and 0:07:05.800 --> 0:07:09.480 I finally met Chad in person, it was at a brewery. Yes, 0:07:09.520 --> 0:07:12.080 exactly right. That was our first hang. We literally drove 0:07:12.160 --> 0:07:14.440 up to a hotel and we said, get in the car, 0:07:14.480 --> 0:07:17.080 we're gonna go get and that was the first hang 0:07:17.160 --> 0:07:19.360 we had. That's very true, and but honestly, that's the 0:07:19.360 --> 0:07:21.040 way a lot of people met us for the first time. 0:07:21.600 --> 0:07:23.440 It's kind of funny too because he is a former 0:07:23.560 --> 0:07:26.080 football player and he barely fit in the back of 0:07:26.160 --> 0:07:29.000 year MAS to five. But Chad, he's a former Clemson 0:07:29.080 --> 0:07:32.240 University football player. Man, he was a starting linebacker, so 0:07:32.360 --> 0:07:34.360 he didn't just sort of play, he legit played, and 0:07:34.440 --> 0:07:37.280 he was the defensive captain there. He graduated college in 0:07:37.320 --> 0:07:40.320 two thousand three with only one thousand dollars in the bank, 0:07:40.760 --> 0:07:43.480 and then he spent the next year scouting properties for 0:07:43.560 --> 0:07:46.080 other investors. He you know, he was doing the legwork, 0:07:46.120 --> 0:07:49.360 doing the research, starting on the ground floor, as it were, exactly, Yeah, 0:07:49.360 --> 0:07:51.360 that's right. And then through that he was able to 0:07:51.400 --> 0:07:54.960 save up enough cash to buy his very own first property. 0:07:55.320 --> 0:07:58.760 And his first place was a quadplex, so it had 0:07:58.840 --> 0:08:01.840 four units in it and he rented three those units 0:08:01.880 --> 0:08:07.480 out for four each, making total and his mortgage was 0:08:07.560 --> 0:08:11.360 even bucks, which means he was living for free and 0:08:11.440 --> 0:08:14.240 only that he was making a hunter bucks every single month. 0:08:14.440 --> 0:08:17.440 And that was right out of school. I love that, man. Yeah, 0:08:17.440 --> 0:08:19.520 getting paid to live, that's where it's at, right. So 0:08:19.600 --> 0:08:22.200 Chad has a lot to teach us about real estate. 0:08:22.280 --> 0:08:25.720 He has purchased over a hundred properties through the years, 0:08:25.960 --> 0:08:27.480 and at this point in his life. He's trying to 0:08:27.560 --> 0:08:29.640 de leverage and take on a little bit less and 0:08:29.720 --> 0:08:32.360 so he is an expert on going big with real 0:08:32.480 --> 0:08:35.160 estate and then desiring something smaller. So I think he's 0:08:35.200 --> 0:08:37.440 got a lot to teach us here and I'm really excited. Yeah, 0:08:37.440 --> 0:08:38.960 he does own a bunch of properties, and so that's 0:08:39.000 --> 0:08:41.360 what kind of interesting is Like he's focusing on the 0:08:41.360 --> 0:08:43.600 fact that you can simplify and still achieve the goals 0:08:43.640 --> 0:08:45.640 that you want to achieve. It doesn't mean that you 0:08:45.800 --> 0:08:48.520 you've got to go big. Instead, you can focus not 0:08:48.640 --> 0:08:51.960 just on getting bigger and growing your business or growing 0:08:52.000 --> 0:08:55.280 your portfolio, but focusing instead on your goals. And that's 0:08:55.280 --> 0:08:56.840 a lot of what he's gonna be talking about today 0:08:56.880 --> 0:08:59.840 is focusing on your goals. Yeah. And Chad actually wrote 0:08:59.880 --> 0:09:01.679 the book on this too, right, So he's yeah, a 0:09:01.720 --> 0:09:04.160 natural book. Right. So he's got a book called Retire 0:09:04.200 --> 0:09:06.880 Early with real Estate and I've read it and it's 0:09:06.920 --> 0:09:10.800 a really, really thorough book. It's so good and fantastic book. Honestly, 0:09:10.800 --> 0:09:13.559 for anyone just wanting to get into real estate investing, 0:09:13.760 --> 0:09:16.360 this is a fantastic read if you just kind of 0:09:16.400 --> 0:09:18.600 want to know more and you want to plumb the 0:09:18.640 --> 0:09:21.640 depths of what real estate investing is. This one book 0:09:21.679 --> 0:09:24.800 honestly will teach you everything you need to know. For me, 0:09:25.280 --> 0:09:27.280 I learned some new things as a real estate investor 0:09:27.360 --> 0:09:30.160 reading Chad's book and identified with a lot of things 0:09:30.160 --> 0:09:31.920 at the same time. And also in this book, Matt 0:09:31.960 --> 0:09:35.040 he profiles like two dozen people that have retired early 0:09:35.200 --> 0:09:37.440 through real estate and that's just kind of nice to 0:09:37.440 --> 0:09:40.080 see all these examples two of how people have done it, 0:09:40.240 --> 0:09:42.600 the different ways that they've done it, and so it's 0:09:42.600 --> 0:09:44.600 a it's an awesome book. Chad also has a new 0:09:44.600 --> 0:09:47.680 podcast which is really good at the same time, so 0:09:47.720 --> 0:09:49.480 he is crushing it. Yeah. What I love about his 0:09:49.520 --> 0:09:51.439 book too, is that he the way he talks and 0:09:51.480 --> 0:09:54.320 the way he explains things, it's just chill like. He's 0:09:54.320 --> 0:09:55.640 able to do it in such a way that it 0:09:55.679 --> 0:09:58.360 connects with you on a real life level. And that's 0:09:58.400 --> 0:09:59.719 what we love. I mean, that's what we try to 0:09:59.760 --> 0:10:02.640 do with our personal finances, and Chad does that with 0:10:02.760 --> 0:10:04.760 real estate. He's able to connect on a level that 0:10:04.800 --> 0:10:07.400 just feels familiar and that feels comfortable. I honestly think 0:10:07.440 --> 0:10:10.720 that he himself will be responsible for turning so many 0:10:10.760 --> 0:10:13.360 people into real estate investors who would not have done 0:10:13.400 --> 0:10:15.719 so had it not been for him. And honestly, he's 0:10:15.720 --> 0:10:18.480 gonna be responsible for turning people into thoughtful real estates 0:10:18.720 --> 0:10:22.160 exactly because there are so many people pitching something asking 0:10:22.200 --> 0:10:23.960 you to come to a ball room to learn a 0:10:24.000 --> 0:10:27.040 scheme or a way of investing in real estate. No 0:10:27.080 --> 0:10:29.200 money of your own right, no, no money down, And 0:10:29.280 --> 0:10:31.720 Chad's not about that. He's talking about a realistic way 0:10:31.760 --> 0:10:33.559 to invest, which you and I talked about on the show, 0:10:33.679 --> 0:10:36.000 which is to save your money and then make a 0:10:36.000 --> 0:10:39.320 substantial down payment, to know your location, all these things 0:10:39.320 --> 0:10:41.600 that we have talked about on different episodes of Real 0:10:41.679 --> 0:10:44.440 Estate Investing. Chad believes those very same things. And honestly, 0:10:44.480 --> 0:10:46.120 one of the reasons we brought Chad on is because 0:10:46.360 --> 0:10:49.000 we have such a similar philosophy and we love the 0:10:49.040 --> 0:10:51.160 way he approaches things and the way he talks about 0:10:51.200 --> 0:10:55.439 real estate investing just completely resonates with our experience and 0:10:55.559 --> 0:10:58.240 with our philosophy. And check out his website as well, 0:10:58.600 --> 0:11:01.640 coach Carson dot com. He has a fantastic online course 0:11:01.679 --> 0:11:03.840 that he offers to a site and personal one on 0:11:03.840 --> 0:11:06.760 one coaching. Yeah, Matt, and ultimately My favorite thing about 0:11:06.760 --> 0:11:09.400 what we're gonna tackle in this episode is the fact 0:11:09.400 --> 0:11:11.520 that you don't have to go big. You don't have 0:11:11.559 --> 0:11:14.200 to build this massive real estate empire. And I think 0:11:14.320 --> 0:11:17.160 sometimes that's the way people think about real estate investing. Well, 0:11:17.160 --> 0:11:19.439 what's the point in just having a couple of properties? 0:11:19.800 --> 0:11:22.360 And Chad says, you know what, No, you can make 0:11:22.440 --> 0:11:25.120 serious money by having just a few properties. You can 0:11:25.160 --> 0:11:28.520 retire early even with just a few properties, in doing 0:11:28.520 --> 0:11:30.680 it the right way. So we're gonna bring Chat on 0:11:30.720 --> 0:11:32.560 the show right off the break, and he's gonna give 0:11:32.640 --> 0:11:35.520 us five awesome minutes talking about why small time real 0:11:35.600 --> 0:11:47.280 estate investing is actually the way to go. All right, Joel, 0:11:47.360 --> 0:11:49.559 let's do this man. We're gonna hear from Chad, and 0:11:49.760 --> 0:11:52.360 right after that we're gonna break it all down. Hey, guys, 0:11:52.559 --> 0:11:54.920 thanks for having me on the show. Have you ever 0:11:55.000 --> 0:11:59.200 heard that expression go big or go home? Sort of 0:11:59.200 --> 0:12:01.040 that macho ex rush and you here sometimes it's a 0:12:01.080 --> 0:12:03.640 sports when I played football, and here in a lot 0:12:03.640 --> 0:12:05.880 in the real estate investing space too, and it's kind 0:12:05.880 --> 0:12:08.320 of like, you know, you haven't arrived until you've made 0:12:08.640 --> 0:12:11.280 you know, hundreds of real estate deals, or until you 0:12:11.320 --> 0:12:14.040 have like ten million dollars saved up and have a 0:12:14.120 --> 0:12:16.480 huge net worth, and you have an army of like 0:12:16.600 --> 0:12:20.040 employees or operations, and you've syndicated a bunch of real 0:12:20.120 --> 0:12:22.920 estate deals and used all these fancy words and fancy titles. 0:12:23.280 --> 0:12:26.400 You haven't arrived, and you can't kick back and enjoy 0:12:26.520 --> 0:12:30.679 life and go live on your yacht until you actually 0:12:30.840 --> 0:12:34.400 have gone big and made it. Obviously, you can tell this. 0:12:34.559 --> 0:12:36.760 This sort of bothers me a little bit. And I'll 0:12:36.760 --> 0:12:39.400 tell you why. Because when I was researching from my book, 0:12:39.800 --> 0:12:42.120 when I was looking back over my own experiences with 0:12:42.160 --> 0:12:44.400 real estate investing and using it to build wealth and 0:12:44.440 --> 0:12:47.080 retire early, you know, just getting to know people who 0:12:47.160 --> 0:12:50.880 actually had flexibility and had time. It's a really big 0:12:50.920 --> 0:12:54.840 contrast because the people I knew had very small but 0:12:55.000 --> 0:12:58.600 very effective portfolios, and some of the people I knew 0:12:58.600 --> 0:13:00.679 who had hundreds and hundreds of properties, who are so 0:13:00.760 --> 0:13:04.880 called successful people, had no time. They couldn't go on 0:13:04.920 --> 0:13:06.920 the same trips and have the same flexibility and do 0:13:06.960 --> 0:13:09.720 the same kinds of things in life that everybody talks about. 0:13:09.800 --> 0:13:12.880 Is so amazing, and so you know, I wanted you 0:13:12.880 --> 0:13:14.079 guys to rip on it a little bit, but I 0:13:14.120 --> 0:13:17.280 wanted to give some numbers just to make this idea 0:13:18.000 --> 0:13:21.959 a little more concrete. So let's say a couple the 0:13:22.040 --> 0:13:23.920 size they want to retire early and they want to 0:13:23.960 --> 0:13:25.480 use real estate, or even if they don't want to 0:13:25.480 --> 0:13:27.679 retire early, they just want to have some flexibility, you know, 0:13:27.720 --> 0:13:30.600 about ten fifteen years from now to do different things 0:13:30.640 --> 0:13:34.120 in life. And so they buy one rental property per year. 0:13:34.800 --> 0:13:37.040 And let's say this is in a decent neighborhood. It 0:13:37.080 --> 0:13:39.520 could be a single family house, could be a duplex, 0:13:39.559 --> 0:13:41.800 but it's in a in a location that they're very 0:13:41.800 --> 0:13:45.080 comfortable managing themselves if they need to. And let's just 0:13:45.240 --> 0:13:47.199 put some numbers on this. Let's say the property has 0:13:47.200 --> 0:13:48.880 a gross rent or a total we're in a fourteen 0:13:48.960 --> 0:13:51.640 hundred dollars per month, and that when you pay all 0:13:51.640 --> 0:13:53.720 of your operating expenses, so like, these are all your 0:13:53.720 --> 0:13:56.040 expenses except for the mortgage, which I'm gonna talk about 0:13:56.160 --> 0:13:58.679 why that's the case in a second. But you pay 0:13:58.760 --> 0:14:02.599 your taxes, your insurance owns your maintenance, your capital expense reserves, 0:14:03.000 --> 0:14:06.000 perhaps some management to help you manage the property. That 0:14:06.040 --> 0:14:08.160 when it's all left over after all those expenses, you 0:14:08.200 --> 0:14:10.680 have about eight hundred dollars per month left over before 0:14:10.720 --> 0:14:13.920 paying your mortgage, so about six hundred dollars and expenses. 0:14:14.280 --> 0:14:16.320 And I'm thinking of some particular properties that I owned 0:14:16.400 --> 0:14:18.800 that had those exact numbers. So this is a realistic 0:14:19.120 --> 0:14:21.600 thing to do. And so they buy those properties, one 0:14:21.600 --> 0:14:25.200 property per year for five years. And after five years, though, 0:14:25.200 --> 0:14:28.160 they decide to take all of their cash flow from 0:14:28.160 --> 0:14:30.720 those rentals, every bit of money money they can save 0:14:30.800 --> 0:14:33.359 up on their own and they start attacking the mortgages 0:14:33.400 --> 0:14:35.440 and paying them off and doing like a debt snowball 0:14:35.600 --> 0:14:38.360 or a debt tsunami, whatever. People call that different different 0:14:38.440 --> 0:14:41.080 names for that, but they're the objective is to get 0:14:41.080 --> 0:14:43.680 those things paid off as quickly as they can. And 0:14:43.680 --> 0:14:46.760 so let's say that takes them another ten years after 0:14:46.800 --> 0:14:50.600 those first five years to have a total about fifteen years. 0:14:51.280 --> 0:14:53.960 They were acquiring properties for five they're paying them off 0:14:53.960 --> 0:14:57.160 and manage them for the last ten years, and fifteen 0:14:57.240 --> 0:14:59.640 years later, which is a kind of amazing timeline when 0:14:59.640 --> 0:15:01.200 you think of out it to get to a really 0:15:01.240 --> 0:15:04.360 cool place in fifteen years. People don't normally talk about that. 0:15:04.400 --> 0:15:06.960 It seems like a really fast and then retirement years 0:15:07.440 --> 0:15:10.960 they have five properties paid off, free and clear, and 0:15:11.000 --> 0:15:13.080 think about what they've done. You know, if my math 0:15:13.160 --> 0:15:15.080 is right, you guys double check me. You know, eight 0:15:15.120 --> 0:15:17.960 hundred dollars per month on each property is about nine thousand, 0:15:18.080 --> 0:15:21.880 six hundred per year, and roughly, if you say five 0:15:21.920 --> 0:15:24.480 times nine thousand six d is about forty eight thousand 0:15:24.560 --> 0:15:27.280 dollars per year. And let's just use fifty bucks. That's 0:15:27.320 --> 0:15:29.680 a nice round number. Maybe it's appreciated a little bit. 0:15:30.120 --> 0:15:33.480 This couple now has fifty thousand dollars per year for 0:15:33.520 --> 0:15:36.040 the rest of their lives, and maybe more if they 0:15:36.120 --> 0:15:38.200 keep going up in value over time. But look at 0:15:38.240 --> 0:15:41.120 what else they've done. Instead of having this big, huge 0:15:41.240 --> 0:15:44.400 monster of a business that that takes over their lives, 0:15:44.760 --> 0:15:47.440 they have something that you guys probably know just like me. 0:15:47.520 --> 0:15:51.280 Managing five properties can be a very, very part time job. 0:15:51.880 --> 0:15:53.640 My wife and I and our two kids went to 0:15:53.720 --> 0:15:56.200 Ecuador with many more properties than that, but you know, 0:15:56.240 --> 0:15:59.080 having some flexibility and time, and we spent seventeen months 0:15:59.080 --> 0:16:02.480 living abroad with rental properties, and so having five rental 0:16:02.480 --> 0:16:06.920 properties can give you an enormous amount of flexibility time 0:16:07.360 --> 0:16:09.000 to start thinking about, you know, what I want to 0:16:09.000 --> 0:16:10.160 do when I grow up, what I want to do 0:16:10.200 --> 0:16:12.160 with the rest of my life, If you're forty five 0:16:12.240 --> 0:16:14.560 or you're fifty years old, like if all sorts of 0:16:14.600 --> 0:16:17.440 things you can do. And that's really the kind of 0:16:17.440 --> 0:16:18.720 the point of what I wanted to talk to you 0:16:18.720 --> 0:16:20.800 guys about with this is that you know, real estates 0:16:20.800 --> 0:16:23.440 the vehicle. The money is the vehicle. You know, what 0:16:23.560 --> 0:16:25.680 is it that people want to do with the rest 0:16:25.680 --> 0:16:28.840 of their life what matters to them. And my contention 0:16:28.960 --> 0:16:33.200 is that a nice, small, simple portfolio that pays you 0:16:33.280 --> 0:16:35.880 the money whatever it is, whe there's fifty hundred thousand, 0:16:35.920 --> 0:16:39.200 whatever the number is, that accomplishes your goals, that keeps 0:16:39.240 --> 0:16:42.040 things simple and lets you do the other things in 0:16:42.040 --> 0:16:44.360 your life that matter to you. So I want you 0:16:44.360 --> 0:16:45.720 guys to rip on that. Let me know what you 0:16:45.760 --> 0:16:48.000 think my off base on that should not not be 0:16:48.080 --> 0:16:50.320 bothered by the go big or go home? And can 0:16:50.360 --> 0:16:52.760 we get a T shirt that says go small or 0:16:52.840 --> 0:16:56.080 go home and start wearing that around? Thanks guys, talk 0:16:56.120 --> 0:16:59.080 to you later. Yeah, I love that, man, the million 0:16:59.120 --> 0:17:02.120 dollar T shirt idea go small or go home? You 0:17:02.160 --> 0:17:03.840 live wearing T shirt? Joel Saw, I know you'd be 0:17:03.840 --> 0:17:06.200 into that. Yeah, if he prints someone, I'll wear it. Yeah, 0:17:06.240 --> 0:17:08.240 I'm glad Chad brought that up right, the go big 0:17:08.320 --> 0:17:10.440 or go home saying right that where you haven't arrived 0:17:10.480 --> 0:17:13.240 until you've made tons of deals, millions and savings. You've 0:17:13.280 --> 0:17:16.359 got like the fancy syndication real estate deals. That is 0:17:16.400 --> 0:17:19.520 the mindset right that keeps everyday people from investing in 0:17:19.560 --> 0:17:21.120 real estate. And that's I guess what I was talking 0:17:21.160 --> 0:17:25.320 about earlier. He's on a mission to destroy that notion, 0:17:25.560 --> 0:17:28.639 because when that notion persists, that's when real estate investing 0:17:28.680 --> 0:17:32.400 seems like it's unattainable, because you hear people talking about how, 0:17:32.440 --> 0:17:35.160 oh I'm into real estate, or you hear somebody say, oh, 0:17:35.200 --> 0:17:37.400 my father he made all his money in real estate. 0:17:38.520 --> 0:17:42.080 Like it's a super boogie, like fancy life. You sit 0:17:42.160 --> 0:17:44.760 back in like this fancy leather chair at this enormous 0:17:44.760 --> 0:17:48.080 walnut desk. You've got the six balls hanging by the 0:17:48.359 --> 0:17:50.520 wires that bounce back and forth, like you know, like 0:17:50.560 --> 0:17:52.639 that whole thing. Actually he kicked up on the desk, 0:17:52.680 --> 0:17:55.639 smoking a cigar, wearing a fancy suit. Yeah, making phone calls. 0:17:55.920 --> 0:17:58.480 I agree. I think Chad's philosophy actually makes real estate 0:17:58.520 --> 0:18:02.840 investing feel more attained, feel more realistic, feel like it's 0:18:02.920 --> 0:18:05.160 less shrouded in secrecy. And I think if we kind 0:18:05.160 --> 0:18:08.159 of take Chad's advice and we decide to simplify the 0:18:08.160 --> 0:18:09.959