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Speaker 1: Welcome to How to Money. I'm Joel and I'm Matt,

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Speaker 1: and today we're discussing brilliant real estate investing tactics with

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Speaker 1: David Green. David Green is a former police officer and

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Speaker 1: a co host of the Bigger Pockets real estate podcast.

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Speaker 1: A nationally recognized authority on real estate, David has been

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Speaker 1: on CNN, Forbes, and HDTV several times. He is the

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Speaker 1: author of bestselling books like Long Distance Real Estate Investing

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Speaker 1: and Sell Your Home for Top Dollar, and he also

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Speaker 1: runs the site Green Income dot com. Joel, are you

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Speaker 1: seeing a common thread here with what he likes to

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Speaker 1: spend his time on real estate? Exactly. Yeah, it's obvious

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Speaker 1: that David is passionate about helping others build wealth, specifically

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Speaker 1: through real estate. I hear he also sleeps every now

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Speaker 1: and the in so, David, Man, thanks so much for

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Speaker 1: coming on the show. My pleasure, guys, is gonna be

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Speaker 1: fun awesome. Well, yeah, David, I hope you do sleep

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Speaker 1: every once in a while. It's tough to to cramp

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Speaker 1: all those things right into into a one day, every

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Speaker 1: day right to do the podcast, to actually be a

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Speaker 1: real estate investor at the same time, to write books,

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Speaker 1: to make all these appearances. We appreciate you taking the

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Speaker 1: time here. And by the way, David, every week on

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Speaker 1: the show, Matt and I we drink a beer while

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Speaker 1: we're talking about money. Today on the show, we're drinking

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Speaker 1: a beer called The Explorer by Archetype Brewing. Brad and

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Speaker 1: Corinna sent this one our way to feature on the

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Speaker 1: show today, And so we want to ask you, David,

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Speaker 1: while you're prioritizing saving and investing for the future, particularly

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Speaker 1: in real estate, what are you splurging on in the

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Speaker 1: here and now that gets you excited? You know, I

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Speaker 1: don't necessarily look at things as splurging as much as

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Speaker 1: I used to when I was in a W two job.

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Speaker 1: Like when I was a cop, you were on some

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Speaker 1: kind of a fixed income. So literally, by definition, it

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Speaker 1: was a splurge if you bought something you didn't need.

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Speaker 1: But when I became an entrepreneur, so I also sell

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Speaker 1: houses now, and I'm starting a loan company, and I

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Speaker 1: have a private mastermind where I teach people success principles

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Speaker 1: so they can become millionaires. So I have different streams

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Speaker 1: of income coming in, and it doesn't feel like a

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Speaker 1: splurge when you spend money anymore because I don't have

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Speaker 1: a limited like amount of money I can make. It's

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Speaker 1: unlimited suspense on what I go do. So there's probably

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Speaker 1: areas of my life I'd say I'm more a discipline

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Speaker 1: when it comes to spending money. Like I eat out

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Speaker 1: a lot, I just I would I would save a

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Speaker 1: lot of money if I like actually had some I

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Speaker 1: could literally pay a chef to shop for me and

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Speaker 1: cook food, and it would be cheaper than just going

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Speaker 1: out to eat. Because I'm always like on the go.

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Speaker 1: That's an area of my life where I could do

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Speaker 1: some more discipline. That's probably the biggest one. I also, uh,

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Speaker 1: I go to any education event that I want. I

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Speaker 1: don't even question it. If they're going to teach me

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Speaker 1: something that's gonna make me better, I just go and

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Speaker 1: and that can be a splurge, you know, Like I

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Speaker 1: don't really look at it too closely. But again, when

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Speaker 1: you're in a position where you have some influence in

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Speaker 1: your entrepreneur it's you're gonna make money back on all

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Speaker 1: that stuff. It ends up being an investment exactly. Yeah,

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Speaker 1: it's more an investment than it is actually you wasting money,

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Speaker 1: right quick question though you're talking about how you could

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Speaker 1: actually pay a chef, So would you actually appreciate would

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Speaker 1: you enjoy having home cooked meals versus the convenience of

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Speaker 1: being able to go wherever you actually wanted to go

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Speaker 1: and just you know, getting whatever meal. I think you

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Speaker 1: know the answers that. That's why you asked that question,

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Speaker 1: and it's it's no, because if I would have I

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Speaker 1: would just have that chef already, right, like I know

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Speaker 1: I should have one. It would be much better for me.

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Speaker 1: The very reason I don't have one is because I

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Speaker 1: wouldn't appreciate it. Otherwise I would have just you know,

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Speaker 1: done that instead. It's a good question, though, I like it.

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Speaker 1: Nice man, all right, So before we get into real estate,

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Speaker 1: we've got a lot of questions about real estate for you.

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Speaker 1: We want to hear a little bit more kind of

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Speaker 1: about your background though, And David, after doing some digging

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Speaker 1: on you, you made some deliberate choices regarding how you

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Speaker 1: went to college and how you handled your money when

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Speaker 1: you were younger that a lot of people could learn

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Speaker 1: a good bit from. And like you said, when you're

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Speaker 1: a police officer, you were living on a pretty small income.

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Speaker 1: Now that's changed. But like tell us kind of what

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Speaker 1: deliberate steps you aid in those college days that helped

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Speaker 1: set you up for the success that you you've been

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Speaker 1: able to find. Now, that's so cool you asked me

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Speaker 1: that because I never get to talk about this. Everybody

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Speaker 1: just wants to know how do I buy a house?

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Speaker 1: But this stuff is much much better looking at how

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Speaker 1: the foundation got laid for how I got here. So

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Speaker 1: when I was in college, I didn't know what I

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Speaker 1: wanted to do. I had a lot of anxiety about that.

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Speaker 1: I'm not a kind of person who doesn't like when

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Speaker 1: there's not a plan. I'm the kind of person that

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Speaker 1: likes when I have a plan and I just go

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Speaker 1: at it with a ferocious intensity until I get through it.

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Speaker 1: I'm very competitive, so I like to race. But when

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Speaker 1: you don't know what you're doing and you don't know

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Speaker 1: where your race track is, it's horrible. You can imagine.

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Speaker 1: So I had a lot of anxiety in college, and

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Speaker 1: the one thing that I could control was working the

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Speaker 1: job I had while I was in college, which was

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Speaker 1: a waiter in a restaurant. While trying to figure out

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Speaker 1: what career am I going to get into, I was

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Speaker 1: trying a bunch of different stuff, So I kind of

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Speaker 1: honestly value the money I made as a waiter above

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Speaker 1: the education I was getting in college, because I didn't

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Speaker 1: know what that education was actually going to turn into.

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Speaker 1: I was a business major, then I was a psychollege

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Speaker 1: you major that I was a criminal justice miner. It's

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Speaker 1: kind of all over the place. So what I would

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Speaker 1: do is I would just work in restaurants, and I

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Speaker 1: would find the best restaurants that I could get, the

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Speaker 1: most expensive one that was the toughest to learn, hardest menu.

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Speaker 1: I had to learn all about fine wines and pairing meats,

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Speaker 1: and if you could pare a nice beer with a steak,

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Speaker 1: I'd be more interested in that. But how we got

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Speaker 1: a little bit blue collar thing going on here exactly. So,

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Speaker 1: because I worked in these nice restaurants and I outworked everybody,

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Speaker 1: actually made pretty good money while I was in college.

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Speaker 1: So I would show up and I would be the

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Speaker 1: first one there and i'd be the last one to leave.

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Speaker 1: And I was as a fishing of a waiter as

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Speaker 1: I could possibly be. I was greedy. I wanted as

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Speaker 1: many tables as I could get. I wanted to give

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Speaker 1: the best service I could get when all the other

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Speaker 1: waiters were like, Okay, I've done enough of this. I

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Speaker 1: just want to go home. Which, let's be honest, in

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Speaker 1: the restaurant world, there's a lot of partying, drinking, and

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Speaker 1: coat going on, and like eight thirty hits nine o'clock,

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Speaker 1: it's the first client they have. Our customer that irritates

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Speaker 1: them is their excuse to quit. That's this human nature.

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Speaker 1: Most people in life are looking for an opportunity to quit,

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Speaker 1: and honestly, I would give it to him. I would

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Speaker 1: be like, hey, you want me to close for you tonight? No, no, no,

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Speaker 1: it's okay, I got it. I need the money because

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Speaker 1: they're gonna get a couple more tables. And then you'd

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Speaker 1: see them frustrated. Hey, you sure you don't want me

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Speaker 1: to close? I'm thinking about it. I'll let you know. Man.

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Speaker 1: Like twenty minutes later, you'd see the kitchen messed up

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Speaker 1: one of their steaks or some one tiny thing went wrong,

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Speaker 1: and hey, do you want to close? Yeah? Man, just

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Speaker 1: take it. I don't want to do with this bs

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Speaker 1: and boom, I'm now the closer. I get another four

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Speaker 1: or five tables. I'm probably making thirty to fifty bucks

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Speaker 1: at average on each of those tables. Right, I double

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Speaker 1: my money in that one move because I would stay

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Speaker 1: late and I'll do that four or five times a week.

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Speaker 1: And I lived at my my parents house. I ate

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Speaker 1: their food. I didn't really have any expenses other than

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Speaker 1: a gym membership and a cell phone bill. So I

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Speaker 1: was saving a lot of money working a job anybody

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Speaker 1: else could get. I wasn't doing anything different than other people.

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Speaker 1: I just did it differently. So it took me about

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Speaker 1: five years to graduate because I changed my major, so

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Speaker 1: I had a year of kind of wasted time. And

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Speaker 1: in those five years, the last year I didn't work

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Speaker 1: because I had a reconstructive ankle surgery. I broke my

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Speaker 1: ankle playing basketball. So out of those four years, I

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Speaker 1: saved dollars. I had paid my car off cash, which

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Speaker 1: was a pretty nice car, and I paid off my

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Speaker 1: my my debt for for school. So I came out

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Speaker 1: of that basically like with a you know, a loaded gun,

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Speaker 1: right when the market tanked, which was the perfect time

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Speaker 1: to have some capital and no expenses. So I've got

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Speaker 1: to follow up on that, basically, what you were saying

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Speaker 1: about being willing to basically when your coworkers wanted to quit,

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Speaker 1: you were there to pick up the slack in real estate.

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Speaker 1: It's one of the only places where there are people

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Speaker 1: out there ready to quit and you can kind of

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Speaker 1: take that asset off of them at a at a

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Speaker 1: heavy discount. It seems to me that that time of

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Speaker 1: being a waiter actually trained you for being able to

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Speaker 1: spot deals. Do you do you agree with that? It

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Speaker 1: also helped me with my real state agent business, where

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Speaker 1: I sell houses for clients. I'm the top producing realtor

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Speaker 1: in my area. So many agents suck. They just they don't,

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Speaker 1: you know, like take their job seriously. They don't commit

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Speaker 1: to their clients. And I picked up so many clients

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Speaker 1: that already had an agent and they just weren't happy

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Speaker 1: with them, you know, Like it's that it's a terrible analogy,

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Speaker 1: but it's that whole. Like the guy is not very

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Speaker 1: good to his girlfriend, and as soon as she finds

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Speaker 1: a guy that treats are better, like, boom, she's gone.

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Speaker 1: You know. In this industry, they are everywhere, and all

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Speaker 1: you gotta say is like, hey, are you tired of

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Speaker 1: your waiter? I I can take care of you over here,

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Speaker 1: and boom, they're at your table and that's your that's

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Speaker 1: your tip now. So yeah, like I think your listeners,

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Speaker 1: I can almost guarantee every one of them has opportunity

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Speaker 1: floating around their heads and they don't see it because

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Speaker 1: they haven't been trained to look for it. So obviously

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Speaker 1: that that explains how you, you know, you were able

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Speaker 1: to save up so much cash, Like, how did you

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Speaker 1: actually get started investing in real estate? Around that time?

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Speaker 1: There's an accident. Man. I had a buddy at church

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Speaker 1: that was moving away to go to Bible College, and

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Speaker 1: he was telling me how he had just put a

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Speaker 1: deposit on a house he was gonna buy. He got

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Speaker 1: accepted in the Bible College, so he took off and

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Speaker 1: and I just heard him saying he was gonna lose

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Speaker 1: his deposit. And I was like, oh shoot, man, like, well,

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Speaker 1: let me go take a look at it. If I

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Speaker 1: can buy it, maybe you'll get your money. It was

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Speaker 1: that I had no idea how real estate worked. I

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Speaker 1: did not want to be an investor. I didn't know

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Speaker 1: that what real estate investing was. I just didn't want

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Speaker 1: my buddy to lose his money. And I knew at

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Speaker 1: some point I would need a house, so I was like, well,

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Speaker 1: I'll just buy it and rent it out. And when

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Speaker 1: I have a family, I'll have a house. That's as

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Speaker 1: far as it went, and then I end buying that house.

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Speaker 1: And that was the first one. So were you still

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Speaker 1: living with your folks at that point, just banking everything? Yeah, man,

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Speaker 1: and I bought like probably ten houses living with other

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Speaker 1: people before I ever by living. Oh that is awesome, dude,

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Speaker 1: that's cool. Yeah, And I love how it can be

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Speaker 1: inauspicious in the beginnings, But that first one, you kind

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Speaker 1: of get the bug. You get excited, and you're like,

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Speaker 1: wait a second, this real estate thing has legs, and

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Speaker 1: this could be a big potential in the long run.

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Speaker 1: So obviously it's been that for you. But for folks

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Speaker 1: that are listening David and they haven't been bitten by

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Speaker 1: that real estate bug, tell them what makes you love

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Speaker 1: real estate investing? Why is it such a great way

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Speaker 1: to build wealth. I love any time that I can

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Speaker 1: do a lot of work up front and then enjoy

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Speaker 1: it for a long time without having to do more work.

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Speaker 1: So I've always been that way, Like if I gotta

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Speaker 1: work really hard to get a good job, but once

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Speaker 1: I get that job, I could just coast. I'd be

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Speaker 1: very interested in that. You know, the law enforcement career.

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Speaker 1: They kick your A, S, S and that academy. The

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Speaker 1: first couple of years, you are terrified every day of

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Speaker 1: making a mistake or getting fired or someone getting hurt.

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Speaker 1: But once you learn it, oh, it's like the coolest

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Speaker 1: job ever. I've just always been drawn to that type

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Speaker 1: of thing, and I've always been I don't like the

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Speaker 1: idea of having to work really hard to get to

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Speaker 1: get a big win and then have to go back

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Speaker 1: and work again. And real estate investing is like the

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Speaker 1: best method I've ever seen for doing a lot of work,

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Speaker 1: getting a victory, doing hardly anything, and money and wealth

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Speaker 1: coming back to you with very very very minimal effort

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Speaker 1: on your behalf. In fact, the only things that do

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Speaker 1: take effort on your behalf can be hired out and

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Speaker 1: paid for with money from that asset, Like you don't

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Speaker 1: have to do anything. So I think when I started

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Speaker 1: to see that part of it is when I was like, oh,

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Speaker 1: this is not something that's gonna suck. I could just

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Speaker 1: work hard to get the deal. You know, I work

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Speaker 1: really hard to say fifty grand, and then I buy

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Speaker 1: a house and then I'm done. It just keeps paying

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Speaker 1: me every single month, And when you look at like

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Speaker 1: you guys know, like thirty years ago, what your parents

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Speaker 1: paid for their first homes. Oh my gosh. When I

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Speaker 1: hear I remember my parents when they lived in Portland, Oregon.

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Speaker 1: I think they bought their first house for like thirty

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Speaker 1: eight thousand or something like that. It's it was probably

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Speaker 1: worth four thousand at the latest value. Yeah, And what

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Speaker 1: do you think they put down on that thirty eight

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Speaker 1: thousand house? Yeah, probably something like that. So they would

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Speaker 1: have turned four grand into four hundred grand plus the

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Speaker 1: cash flow they would have had over that thirty years

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Speaker 1: as well, right, Like, and their and their tenants would

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Speaker 1: have paid that all off for him. That's it, Like,

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Speaker 1: it's it's freaking I don't even know the word to

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Speaker 1: describe how magical it is. Not fair for Yeah, it's

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Speaker 1: ridiculous how easy it is to make money in real

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Speaker 1: estate if you play it for the long game. Everyone

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Speaker 1: that loses money is the ones that are trying to

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Speaker 1: get in and get out really quick. That's the problem

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Speaker 1: they all make. But I mean, if you what if

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Speaker 1: your parents had just bought another house every year for

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Speaker 1: thirty years and they are all four thousand dollar houses

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Speaker 1: or four thousand down payments, it turned into four hunt.

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Speaker 1: That's an insane amount of well that you don't have

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Speaker 1: to be very intelligent to accumulate. Well, if my parents

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Speaker 1: had done that, I'd be probably living on a private

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Speaker 1: island or something like that. To be kind of sweet. Yeah,

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Speaker 1: you'd be like I'd be interviewing you. Did you get

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Speaker 1: what did you do at such a good job as

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Speaker 1: to get parents like that? Exactly right? Yeah, I want

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Speaker 1: the birth lottery. Well, David, I mean it sounds like

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Speaker 1: you've made some like some great decisions, right like you

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Speaker 1: and you came across some great deals when you were

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Speaker 1: first getting started in real estate, Like what was one

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Speaker 1: of the like the hardest or maybe one of the

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Speaker 1: worst deals where you learned just a really important lesson

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Speaker 1: that is stuck with you. You know, I've been so

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Speaker 1: blessed in my career. I've really never lost money on

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Speaker 1: a deal. When I got started, it was the best

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Speaker 1: market to ever be in. So a lot of the

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Speaker 1: mistakes you make when you're new, we're very forgiving for

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Speaker 1: me because the market just kept going up and up

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Speaker 1: and up. The big the biggest mistakes I made, to

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Speaker 1: be honest with you, is I was not aggressive enough.

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Speaker 1: There was no reason for me to not buy more houses.

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Speaker 1: I just I didn't grasp quickly enough how much risk

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Speaker 1: I could take and still be fine as a single

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Speaker 1: guy making tons of money with zero bills. I should

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Speaker 1: have been moving really fast. That was the biggest mistake.

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Speaker 1: The only other time I've ever lost money on a

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Speaker 1: deal was a house. I bought like six houses at

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Speaker 1: a time, and I forgot about one of them. My

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Speaker 1: real estate age of business was taken off. I had

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Speaker 1: like eight clients, I had six houses in contract, my

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Speaker 1: assistant was brand new. Every day was just chaos, and

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Speaker 1: I literally forgot about one of the homes. And when

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Speaker 1: it came time to close escrow, I realized I hadn't

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Speaker 1: done any of the inspections. I hadn't done a dang thing,

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Speaker 1: and I couldn't get my deposit back. So I lost

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Speaker 1: five thousand dollars because I just the house ended up

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Speaker 1: being such bad shape I couldn't buy it. But even then, like,

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Speaker 1: I made so much more money off those other five

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Speaker 1: houses that I bought and all the houses I sold,

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Speaker 1: that I can't even be mad that I lost five

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Speaker 1: grand and be easy to focus on. See, that's why

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Speaker 1: you shouldn't do it. You could lose money, But how

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Speaker 1: much money did real estate make me during that same

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Speaker 1: time frame. Yeah, Yeah, that's a good point. I mean,

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Speaker 1: I feel like there are all sorts just you know,

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Speaker 1: Matt and I were mom and pop real estate investors.

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Speaker 1: We've got basically in a four or five houses that

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Speaker 1: that we're running out, and there are all these little

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Speaker 1: things that I could have pointed to along the way

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Speaker 1: as reasons to stop places that would it have been

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Speaker 1: easy to quit. But basically these houses have been so

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Speaker 1: instrumental in building our wealth and helping, you know, our

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Speaker 1: families live the kind of life we want to live

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Speaker 1: that I'm glad we didn't, you know, I'm really glad

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Speaker 1: we didn't. By the way, David, you are totally the

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Speaker 1: king of analogies, man. I've I've never heard anyone be

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Speaker 1: able to put together an analogy on the spot better

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Speaker 1: than you. So and you especially do this, by the way,

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Speaker 1: on on the Bigger Pockets podcast, which you co host. So,

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Speaker 1: do you have any favorite analogies, favorite go to analogies

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Speaker 1: that you tend to use when you're talking about buying

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Speaker 1: or selling or investing in real estate. Yeah, but it's offensive,

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Speaker 1: it's not dirty at all. It just isn't very tasteful,

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Speaker 1: That's all that it is. So I tell my clients

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Speaker 1: when when they're looking to buy a house, and this

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Speaker 1: would absolutely apply to real estate investors as well, that

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Speaker 1: what most people do in life is they all chase

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Speaker 1: after the same thing. Okay, everybody is going after the

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Speaker 1: same four houses because they have the best pictures, and

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Speaker 1: they look the best, and they're the best part of town,

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Speaker 1: and we expect the best. The dating world and the

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Speaker 1: real estate world are so closely related, right, Like I

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Speaker 1: just see, there's so many parallels between them and the

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Speaker 1: emotions that you feel when you're looking for someone a

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Speaker 1: date or dating someone versus when you're looking for a

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Speaker 1: house or in the scrow process. And what I tell

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Speaker 1: my clients is like, look, you're gonna see houses that

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Speaker 1: look amazing and get you all excited, and your heart

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Speaker 1: is gonna be pounding and you're gonna think I'll do

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Speaker 1: anything to get it. And it's the same way that

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Speaker 1: these suckers are when they see a hot girl at

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Speaker 1: the bar with fake everything, and every one of them

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Speaker 1: chases the same girl. They're all buying her drinks and

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Speaker 1: trying to toss game at her and looking the best

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Speaker 1: that they can and bragging and just making a fool

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Speaker 1: out of themselves because they all want that same girl. Right,

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Speaker 1: does that girl ever respect those guys? No, she doesn't care.

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Speaker 1: She's just waiting for the guy that's better than you.

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Speaker 1: And like that's who she's gonna, you know, give her

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Speaker 1: number two or whatever. That's exactly it, like you just gave.

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Speaker 1: You just give all your power to someone you're never

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Speaker 1: going to get something from. And it's it's not wise,

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Speaker 1: but but it's what we do as people. And I

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Speaker 1: just warned them. You're gonna want to do the same

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Speaker 1: thing buying a else. You're gonna look for the one

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Speaker 1: that's moving ready and looks great, best part of town,

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Speaker 1: best school, district's best everything. And so are the other

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Speaker 1: fifty people who are buying a house. And it's gonna

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Speaker 1: get overbid by so much you're never gonna get it.

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Speaker 1: And then you're gonna get heartbroken. And then you're gonna

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Speaker 1: ask yourself, why was I enough? Why didn't you like me?

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Speaker 1: I'm not good? And your confidence is gonna get shot,

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Speaker 1: and it happens two or three more times, and you

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Speaker 1: you get out of the game completely. We're not looking

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Speaker 1: for that girl. We're looking for the girl sitting in

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Speaker 1: the back with her hair up, no makeup on, big

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Speaker 1: big fronty sweater glasses like maybe some baby spit up

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Speaker 1: on her or something that makes zero effort to look

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Speaker 1: good at all reading a book, but with a makeover,

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Speaker 1: that girl would be the perfect wife. That's what you

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Speaker 1: look for in a deal, right, really good bones, really

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Speaker 1: good area, terrible looking house. That's that's what I'm going for.

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Speaker 1: So to me, like, that's the strongest analogy because we

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Speaker 1: can understand the emotions behind it. If you've ever been

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Speaker 1: in the situation where you chase the wrong girl or

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Speaker 1: you chase the right girl and you're so glad that

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Speaker 1: you did, like, it sticks with you really hard. And

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Speaker 1: analogies are helpful because they help us make an emotional

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Speaker 1: connection with something we understand over a topic that we didn't.

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Speaker 1: Would you say the similar analogy, I guess to your

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Speaker 1: female clients, right, I guess the the analogy swings both

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Speaker 1: john Ham type instead look for the I don't know

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Speaker 1: John Ham looks. It's pretty nice. Yeah, he's he's nice.

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Speaker 1: You don't want him. That's why I said that it's

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Speaker 1: not tasteful because it doesn't like it does talk about

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Speaker 1: like an ugly side of human nature, And I don't

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Speaker 1: think women relate as much to the chase as much

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Speaker 1: as a guy does. Like, like I might use that

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Speaker 1: example when I'm gonna sell their house, right, Like we

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Speaker 1: want to get our house to look like the hot

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Speaker 1: girl at the bar, and everyone's gonna chase it. We're

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Speaker 1: gonna get over asking price type of a deal. So no,

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Speaker 1: I probably wouldn't use that example with them, But regardless, Like,

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Speaker 1: the part you have to realize is the stuff that

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Speaker 1: makes you run away from a deal. It smells bad,

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Speaker 1: it's gross, it needs a lot of work, blah blah blah.

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Speaker 1: That is what where the money is. You need to

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Speaker 1: be looking for the stuff other people don't want. That's

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Speaker 1: the seller that's like motivated and even desperate at times

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Speaker 1: and needs to sell that property. And the more work

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Speaker 1: that you are willing to put into that property yourself,

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Speaker 1: the more equity you're gonna build. And if you if

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Speaker 1: you pick the right person to date, and they're not

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Speaker 1: a person who's trying really hard to get attention, but

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Speaker 1: you you pour into that person, you love that person,

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Speaker 1: you build that person up, they're gonna love you back.

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Speaker 1: So much more when it's over, if they're a good deal,

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Speaker 1: you know, and so and and real estate is very similar.

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Speaker 1: All right, Well, dude, well that I feel like you're

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Speaker 1: getting into some stuff that I can't wait to talk

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Speaker 1: with you about, in particular about buying a house. And

429
00:18:26,760 --> 00:18:29,520
Speaker 1: there's one analogy that you and your co host Brandon

430
00:18:29,600 --> 00:18:32,719
Speaker 1: have come up with about buying homes. It's called the

431
00:18:32,760 --> 00:18:35,439
Speaker 1: Burr strategy. And we're going to get into that right

432
00:18:35,480 --> 00:18:47,800
Speaker 1: after the break. Let's talk now about buying homes. This

433
00:18:47,880 --> 00:18:51,240
Speaker 1: is obviously what you spend a lot of your time doing, right,

434
00:18:51,359 --> 00:18:53,159
Speaker 1: It's just all about the bio, like that's where the

435
00:18:53,200 --> 00:18:56,560
Speaker 1: deals happen. And Joel, he hinted at the Burr strategy.

436
00:18:56,640 --> 00:19:00,480
Speaker 1: Can you explain what that funny acronym is all about? Yeah, So,

437
00:19:00,560 --> 00:19:02,359
Speaker 1: I actually just wrote a book on this topic. It

438
00:19:02,440 --> 00:19:04,600
Speaker 1: came out about three and a half months ago. I

439
00:19:04,640 --> 00:19:06,280
Speaker 1: thought when we gave you guys the bio for me,

440
00:19:06,320 --> 00:19:08,960
Speaker 1: it hadn't come out yet. And it's the best selling

441
00:19:09,000 --> 00:19:11,200
Speaker 1: real estate book on Amazon right now. That book is

442
00:19:11,200 --> 00:19:15,920
Speaker 1: is crushing it. It's yeah, and in the business category,

443
00:19:16,040 --> 00:19:17,960
Speaker 1: I am right in between rich Dad, Poor Dad, and

444
00:19:18,000 --> 00:19:19,919
Speaker 1: the four Our work week as far as sales go,

445
00:19:20,080 --> 00:19:23,800
Speaker 1: so yeah, yeah, they're pretty good, so who knows how

446
00:19:23,800 --> 00:19:27,840
Speaker 1: long I'll stay there. But the acronym stands for buy, rehab, rent, refinance, repeat,

447
00:19:27,920 --> 00:19:31,320
Speaker 1: all right, And the book basically spells out the order

448
00:19:31,400 --> 00:19:34,000
Speaker 1: in which you buy a property in order to invest

449
00:19:34,040 --> 00:19:35,960
Speaker 1: in real estate the best way that you possibly can.

450
00:19:36,600 --> 00:19:38,080
Speaker 1: What most people do, and this is what I did

451
00:19:38,160 --> 00:19:40,359
Speaker 1: most of my career, was we go, we buy a

452
00:19:40,400 --> 00:19:42,760
Speaker 1: house with a big down payment, We put money into

453
00:19:42,800 --> 00:19:45,040
Speaker 1: fixing it up, and then when it's done, we rent

454
00:19:45,119 --> 00:19:47,320
Speaker 1: it out and you calculate your r o I based

455
00:19:47,320 --> 00:19:48,840
Speaker 1: on how much money you had to put in the deal.

456
00:19:49,440 --> 00:19:53,240
Speaker 1: But the problem with that is that all your money goes.

457
00:19:53,359 --> 00:19:57,000
Speaker 1: It's very difficult to save grand to go buy a property,

458
00:19:57,080 --> 00:19:58,640
Speaker 1: and then you're gonna have to dump even more money

459
00:19:58,640 --> 00:20:00,080
Speaker 1: and on the rehab. So what you do is you

460
00:20:00,080 --> 00:20:01,840
Speaker 1: try to buy the house that has the least amount

461
00:20:01,840 --> 00:20:03,760
Speaker 1: of rehab work needed, so you put the least amount

462
00:20:03,760 --> 00:20:06,240
Speaker 1: of money into it. But that's usually the worst deal,

463
00:20:06,760 --> 00:20:09,920
Speaker 1: and the entire method steers you towards buying the wrong

464
00:20:10,000 --> 00:20:13,560
Speaker 1: property or dating the wrong person. Right. The Burr method

465
00:20:13,600 --> 00:20:16,640
Speaker 1: is different. You look for the ugliest nastiest, grossest house

466
00:20:16,680 --> 00:20:19,080
Speaker 1: you can get your hands on. Then you spend as

467
00:20:19,280 --> 00:20:21,080
Speaker 1: as much money as you have to to make it

468
00:20:21,119 --> 00:20:22,880
Speaker 1: worth as much as you can. You don't even worry

469
00:20:22,920 --> 00:20:25,240
Speaker 1: about what the rehab is in terms of numbers. You

470
00:20:25,320 --> 00:20:27,240
Speaker 1: just worry about the return you're gonna get on the

471
00:20:27,240 --> 00:20:29,720
Speaker 1: work you do. Then you rent it out and then

472
00:20:29,720 --> 00:20:31,760
Speaker 1: it's worth a bunch more money. When it's worth a

473
00:20:31,800 --> 00:20:34,680
Speaker 1: bunch more money, you refinance it based on its improved

474
00:20:34,720 --> 00:20:37,879
Speaker 1: value and get way more capital back. In fact, I

475
00:20:37,920 --> 00:20:39,920
Speaker 1: can usually get a hundred percent of my capital back

476
00:20:39,960 --> 00:20:42,199
Speaker 1: after I'm done, and I use that capital to go

477
00:20:42,240 --> 00:20:44,639
Speaker 1: buy the next house, so you never run out of money.

478
00:20:44,840 --> 00:20:46,960
Speaker 1: You also are forced to buy better deals. You also

479
00:20:46,960 --> 00:20:49,640
Speaker 1: add equity, and every single deal that you buy, and

480
00:20:49,680 --> 00:20:52,600
Speaker 1: you like supercharge how quickly you can build a portfolio

481
00:20:52,680 --> 00:20:56,200
Speaker 1: without increasing your risk. And and then you're basically also

482
00:20:56,880 --> 00:20:59,119
Speaker 1: at the same time recouping all of your equity. In

483
00:20:59,160 --> 00:21:01,960
Speaker 1: the Burr method, you are you're cash flowing every month

484
00:21:02,040 --> 00:21:04,879
Speaker 1: on those properties. Right. Oh yeah, I wouldn't buy it

485
00:21:04,880 --> 00:21:06,959
Speaker 1: if I didn't cash like so, my my standards are

486
00:21:06,960 --> 00:21:09,280
Speaker 1: pretty much the same as what I would expect if

487
00:21:09,320 --> 00:21:11,160
Speaker 1: I put a house with a down payment on it.

488
00:21:11,560 --> 00:21:14,159
Speaker 1: But rather than buying equity, which is I put a

489
00:21:14,160 --> 00:21:15,919
Speaker 1: bunch of money into the property and now I have

490
00:21:16,000 --> 00:21:19,760
Speaker 1: some equity, I'm building equity. I'm creating equity through paying

491
00:21:19,840 --> 00:21:22,800
Speaker 1: undermarket value and then adding value through a rehab. So

492
00:21:22,840 --> 00:21:25,719
Speaker 1: I'm getting the same equity either way, but I'm not

493
00:21:25,840 --> 00:21:28,360
Speaker 1: using my capital to create it, so I can use

494
00:21:28,359 --> 00:21:30,400
Speaker 1: that capital to go buy the next deal. You still

495
00:21:30,400 --> 00:21:31,920
Speaker 1: needed to cash flow, You still need to be in

496
00:21:31,920 --> 00:21:34,200
Speaker 1: a good area. You don't change your standard at all

497
00:21:34,520 --> 00:21:37,520
Speaker 1: regarding what you expect from that property when you're done.

498
00:21:37,720 --> 00:21:39,560
Speaker 1: You just change the order in which you're buying it

499
00:21:39,600 --> 00:21:41,960
Speaker 1: to make it more efficient. Nice well, David, what you're

500
00:21:41,960 --> 00:21:45,399
Speaker 1: talking about here essentially is forced appreciation, right yep. That

501
00:21:45,440 --> 00:21:47,399
Speaker 1: seems to be one of the most consistent ways to

502
00:21:47,400 --> 00:21:50,399
Speaker 1: make money in real estate. You're talking about buying ugly homes.

503
00:21:50,400 --> 00:21:52,000
Speaker 1: That's one of the ways you're able to sort of

504
00:21:52,000 --> 00:21:54,840
Speaker 1: force that appreciation. What would you say are your biggest

505
00:21:54,840 --> 00:21:58,359
Speaker 1: tips for you know, finding that deal for forcing that

506
00:21:58,400 --> 00:22:02,840
Speaker 1: appreciation in a home that most investors don't even consider.

507
00:22:03,800 --> 00:22:05,800
Speaker 1: So the first step would be look for the girl

508
00:22:05,840 --> 00:22:07,639
Speaker 1: that no one else is trying to date. Right, Like,

509
00:22:07,680 --> 00:22:09,359
Speaker 1: don't look for the house that looks as good as

510
00:22:09,359 --> 00:22:11,640
Speaker 1: it possibly can look for that. You're looking for problems

511
00:22:11,680 --> 00:22:14,280
Speaker 1: in real estate, and the bigger problem, and the more

512
00:22:14,280 --> 00:22:16,240
Speaker 1: problems you can solve, the more money you can make.

513
00:22:16,320 --> 00:22:18,879
Speaker 1: So what I do is I tell agents, send me

514
00:22:18,920 --> 00:22:20,960
Speaker 1: the nastiest stuff, send me the thing that's been on

515
00:22:20,960 --> 00:22:23,360
Speaker 1: the market for way too long, Send me the house

516
00:22:23,400 --> 00:22:25,040
Speaker 1: that the minute you get that feeling, I don't want

517
00:22:25,040 --> 00:22:27,000
Speaker 1: this listing, right, I need you to think of me

518
00:22:27,040 --> 00:22:28,840
Speaker 1: every time you get that sick feeling in your stomach

519
00:22:28,840 --> 00:22:31,919
Speaker 1: and associate David Green with I'm gonna puke right when

520
00:22:31,960 --> 00:22:35,760
Speaker 1: you get yeah, when you get nauseous. Not agree strategy

521
00:22:35,800 --> 00:22:37,920
Speaker 1: for dating, but it works really good in real estate, right.

522
00:22:38,080 --> 00:22:41,040
Speaker 1: So so I'm looking for top producing agents or wholesalers

523
00:22:41,119 --> 00:22:43,080
Speaker 1: or everyone who's like, hey, when you get a house

524
00:22:43,119 --> 00:22:45,080
Speaker 1: that you know, oh god, no one's gonna want this,

525
00:22:45,280 --> 00:22:46,720
Speaker 1: think of me and send it to me. That's what

526
00:22:46,760 --> 00:22:49,439
Speaker 1: I definitely want. Um. So that's the first thing that

527
00:22:49,480 --> 00:22:51,720
Speaker 1: you look for with the deal. Then you also have

528
00:22:51,800 --> 00:22:53,680
Speaker 1: to think about like starting with the end in mind,

529
00:22:54,080 --> 00:22:56,000
Speaker 1: so it doesn't matter you don't want to analyze the

530
00:22:56,000 --> 00:22:57,840
Speaker 1: deal that isn't gonna cash flow in the first place,

531
00:22:57,880 --> 00:23:00,199
Speaker 1: you just would never buy it. So I look for

532
00:23:00,359 --> 00:23:02,359
Speaker 1: areas so like what I told you guys before, is

533
00:23:02,480 --> 00:23:04,600
Speaker 1: how I find the actual property. But the area that

534
00:23:04,640 --> 00:23:07,080
Speaker 1: I'm looking in is determined by like the one percent rule.

535
00:23:07,400 --> 00:23:09,200
Speaker 1: So I look for properties that are gonna rent every

536
00:23:09,200 --> 00:23:11,520
Speaker 1: month for about one percent of how much I put

537
00:23:11,520 --> 00:23:13,760
Speaker 1: into the deal. If it's like, I don't do this

538
00:23:13,800 --> 00:23:17,080
Speaker 1: in California, we cannot cash flow in California. You're not

539
00:23:17,080 --> 00:23:19,800
Speaker 1: doing this in San Francisco. No, believe it or not.

540
00:23:20,200 --> 00:23:22,560
Speaker 1: The only bird in San Francisco is cold from the fog.

541
00:23:22,840 --> 00:23:25,280
Speaker 1: It's definitely not something that you do with houses. So

542
00:23:25,520 --> 00:23:27,159
Speaker 1: I'm in the South and I'm in the Midwest. I'm

543
00:23:27,160 --> 00:23:29,040
Speaker 1: in areas where I'm more likely to find a cash

544
00:23:29,080 --> 00:23:31,760
Speaker 1: fling property. So you picked your area. I wrote about

545
00:23:31,760 --> 00:23:33,840
Speaker 1: that in my book Long Distance Real Estate Investing. You

546
00:23:33,880 --> 00:23:36,280
Speaker 1: build your team, and then once you have the team,

547
00:23:36,320 --> 00:23:39,320
Speaker 1: the instructions you give them where I want these nasty properties.

548
00:23:39,600 --> 00:23:41,639
Speaker 1: And then once you get it, you have other people

549
00:23:41,680 --> 00:23:43,920
Speaker 1: do due diligence, like go check out the property, give

550
00:23:43,920 --> 00:23:45,960
Speaker 1: you estimates on the rehab, give you a timeline. It's

551
00:23:45,960 --> 00:23:47,800
Speaker 1: gonna be check out what your rent is gonna be,

552
00:23:47,840 --> 00:23:50,720
Speaker 1: do all your normal due diligence. But after the house

553
00:23:50,760 --> 00:23:53,119
Speaker 1: has been fixed up and it's a nice, beautiful jewel,

554
00:23:53,280 --> 00:23:54,760
Speaker 1: that's when you go to the bank and you say, okay,

555
00:23:54,800 --> 00:23:57,120
Speaker 1: I want to loan on this, not in the beginning. Well,

556
00:23:57,160 --> 00:23:59,760
Speaker 1: what are there ever any deal breakers? Because it's how

557
00:23:59,840 --> 00:24:02,200
Speaker 1: it sounds like there might not be anything like you

558
00:24:02,200 --> 00:24:04,800
Speaker 1: would buy anything. Yeah, yeah, yeah, So is there ever

559
00:24:04,840 --> 00:24:07,000
Speaker 1: anything that you're like, Man, I'm not touching that with

560
00:24:07,000 --> 00:24:10,960
Speaker 1: a ten football. That location is the only deal breaker

561
00:24:11,000 --> 00:24:13,760
Speaker 1: for me. So I have to two philosophies when it

562
00:24:13,800 --> 00:24:17,040
Speaker 1: comes to this. The first is the location is literally

563
00:24:17,080 --> 00:24:20,760
Speaker 1: the only part of an asset that you can't change

564
00:24:21,119 --> 00:24:23,680
Speaker 1: or fix. I mean, if you build, if you bought

565
00:24:23,760 --> 00:24:25,920
Speaker 1: up the entire neighborhood, maybe, but that just wouldn't be

566
00:24:25,920 --> 00:24:28,760
Speaker 1: an efficient use of capital when you're having like, you know,

567
00:24:28,760 --> 00:24:30,280
Speaker 1: would you have buy a house with termites? When you

568
00:24:30,280 --> 00:24:33,320
Speaker 1: buy a house foundation issues? What about electrical issues? What

569
00:24:33,440 --> 00:24:36,640
Speaker 1: I've seen from you know, counseling and teaching other investors

570
00:24:37,040 --> 00:24:40,400
Speaker 1: is that those hot button topics cause fear. They cause

571
00:24:40,440 --> 00:24:42,640
Speaker 1: an emotion that is very negative that makes you want

572
00:24:42,640 --> 00:24:45,120
Speaker 1: to withdraw, that doesn't help you. So what I've learned

573
00:24:45,119 --> 00:24:47,080
Speaker 1: to do is take all of those things that you

574
00:24:47,160 --> 00:24:49,160
Speaker 1: just mentioned, like would you not buy a house because

575
00:24:49,160 --> 00:24:52,199
Speaker 1: of whatever, and just convert it into a dollar. A

576
00:24:52,240 --> 00:24:54,680
Speaker 1: dollar is a number how much money would it cost

577
00:24:54,720 --> 00:24:57,280
Speaker 1: to fix seid thing? And once I've got that, I

578
00:24:57,320 --> 00:24:59,359
Speaker 1: plug that in a spreadsheet and I see if it

579
00:24:59,400 --> 00:25:01,959
Speaker 1: makes sense. So if it's gonna be ten thousand dollars

580
00:25:01,960 --> 00:25:04,800
Speaker 1: to fix this problem and ten thousand dollars to fix

581
00:25:04,880 --> 00:25:07,879
Speaker 1: that problem, just because one of them sounds says electrical

582
00:25:07,960 --> 00:25:10,240
Speaker 1: hazard and the other one says dry rot, doesn't make

583
00:25:10,240 --> 00:25:12,080
Speaker 1: one any worse than the other. I don't care. If

584
00:25:12,080 --> 00:25:14,200
Speaker 1: it has foundation problems? Can it be fixed? What would

585
00:25:14,240 --> 00:25:15,880
Speaker 1: it cost to fix it? Oh? It can't be fixed.

586
00:25:15,880 --> 00:25:17,199
Speaker 1: What would it cost to tear down the house and

587
00:25:17,240 --> 00:25:19,879
Speaker 1: rebuild a new house? Right? If it has such a

588
00:25:19,880 --> 00:25:22,760
Speaker 1: bad foundation problem, maybe the seller can't sell it to anybody,

589
00:25:23,000 --> 00:25:24,719
Speaker 1: and it'll have to sell it to me for basically

590
00:25:24,800 --> 00:25:27,080
Speaker 1: the price of the land or less. You know, That's

591
00:25:27,119 --> 00:25:29,200
Speaker 1: how I look at every single thing that could possibly

592
00:25:29,240 --> 00:25:30,919
Speaker 1: come up. As I turn it into a number, and

593
00:25:30,960 --> 00:25:32,199
Speaker 1: I say, what would I have to do to make

594
00:25:32,240 --> 00:25:34,000
Speaker 1: the deal work, and then that's what I offered the

595
00:25:34,080 --> 00:25:37,840
Speaker 1: seller man. Essentially, you're just removing that emotion. I mean,

596
00:25:37,880 --> 00:25:40,400
Speaker 1: obviously it sounds like plugging the numbers into the spreadsheet

597
00:25:40,440 --> 00:25:42,720
Speaker 1: that that's one way that you can just literally translate

598
00:25:42,760 --> 00:25:45,560
Speaker 1: fear into dollar amounts. Do you have any other tips

599
00:25:45,560 --> 00:25:47,840
Speaker 1: sort of along that you know that that train of thought,

600
00:25:47,880 --> 00:25:49,639
Speaker 1: like how do you remove like how else can you

601
00:25:49,640 --> 00:25:52,560
Speaker 1: remove emotions from a deal like that other than just

602
00:25:52,600 --> 00:25:55,080
Speaker 1: looking at the numbers? The first one is to turn

603
00:25:55,119 --> 00:25:57,040
Speaker 1: it into a number, because the number won't, you know,

604
00:25:57,119 --> 00:25:59,359
Speaker 1: affect you emotionally. That's the biggest piece of advice. So

605
00:25:59,400 --> 00:26:01,800
Speaker 1: I've heard people say, what about lead based paint? I

606
00:26:01,840 --> 00:26:04,520
Speaker 1: don't care what would it cost to take it out? Right?

607
00:26:04,760 --> 00:26:06,560
Speaker 1: So what you need is someone who knows the answer

608
00:26:06,560 --> 00:26:08,880
Speaker 1: to that question. You get a contractor on your team

609
00:26:08,920 --> 00:26:10,639
Speaker 1: who's really good and you can trust, and all of

610
00:26:10,680 --> 00:26:13,760
Speaker 1: a sudden, you don't have fear anymore. That's a big piece, right.

611
00:26:13,800 --> 00:26:15,280
Speaker 1: Like when I'm going to buy a car and it's

612
00:26:15,320 --> 00:26:18,080
Speaker 1: a used car, I feel a lot of apprehension, there's uncertainty,

613
00:26:18,080 --> 00:26:21,080
Speaker 1: there's anxiety. I don't know what to expect. But if

614
00:26:21,080 --> 00:26:22,960
Speaker 1: I have a super good mechanic that looks over the

615
00:26:22,960 --> 00:26:24,480
Speaker 1: car and says you're good to go. All of a sudden,

616
00:26:24,520 --> 00:26:26,840
Speaker 1: that fear goes away. So rather than using fear is

617
00:26:26,880 --> 00:26:29,720
Speaker 1: an excuse to not take action, fear is it is

618
00:26:29,760 --> 00:26:33,040
Speaker 1: an indication. It's a signal that you are unprepared, So

619
00:26:33,080 --> 00:26:35,440
Speaker 1: you go find the thing that you need to make

620
00:26:35,480 --> 00:26:38,359
Speaker 1: that fear go away. That's that's probably the biggest piece

621
00:26:38,680 --> 00:26:40,600
Speaker 1: that I would say. The rest of it would be

622
00:26:40,680 --> 00:26:43,680
Speaker 1: quit thinking that you've got to figure everything out, because

623
00:26:43,680 --> 00:26:45,600
Speaker 1: there's some fear involved with that too, And at the

624
00:26:45,680 --> 00:26:48,280
Speaker 1: very minimum, if not fear, there's some apprehension or just

625
00:26:48,320 --> 00:26:51,040
Speaker 1: irritation having to do all this work. So all the

626
00:26:51,080 --> 00:26:53,040
Speaker 1: time I hear people say, oh, you gotta learn this,

627
00:26:53,080 --> 00:26:55,080
Speaker 1: and you gotta learn that, and they're reading all these

628
00:26:55,119 --> 00:26:58,959
Speaker 1: books and all these different topics property management, construction, you know,

629
00:26:59,080 --> 00:27:01,919
Speaker 1: like understand any of the area, the overall economy. I

630
00:27:01,960 --> 00:27:03,800
Speaker 1: don't do any of that stuff. I mean, I learned

631
00:27:03,800 --> 00:27:06,080
Speaker 1: it along the way, but I don't need to be

632
00:27:06,119 --> 00:27:09,320
Speaker 1: the expert. And I don't know crap about property management.

633
00:27:09,359 --> 00:27:11,480
Speaker 1: I just know what my property managers have told me.

634
00:27:11,520 --> 00:27:13,600
Speaker 1: Are the three biggest things that make it work? Or

635
00:27:13,640 --> 00:27:15,240
Speaker 1: don't make it work, and I make sure that I

636
00:27:15,359 --> 00:27:17,720
Speaker 1: incorporate that into my deal. I let them worry about that,

637
00:27:17,720 --> 00:27:20,000
Speaker 1: that's their thing. I don't need to understand the laws

638
00:27:20,040 --> 00:27:23,800
Speaker 1: behind thirty day notices and and three day notices and

639
00:27:23,800 --> 00:27:26,040
Speaker 1: and all that stuff. That's what they do. So when

640
00:27:26,119 --> 00:27:28,359
Speaker 1: I go into a new endeavor, I'm going into it

641
00:27:28,480 --> 00:27:30,479
Speaker 1: knowing there's certain things I'm just not going to deal with.

642
00:27:30,480 --> 00:27:32,120
Speaker 1: Somebody else is going to have to deal with that.

643
00:27:32,640 --> 00:27:34,679
Speaker 1: So I don't have a lot of the fear and

644
00:27:34,680 --> 00:27:36,560
Speaker 1: apprehension other people have who think that they have to

645
00:27:36,560 --> 00:27:38,520
Speaker 1: do it all on their own, because the reality is

646
00:27:38,560 --> 00:27:40,280
Speaker 1: if I David did it all on his own, he'd

647
00:27:40,320 --> 00:27:41,919
Speaker 1: be worse than if you just let other people do

648
00:27:41,960 --> 00:27:44,440
Speaker 1: it who are better. M Yeah, that's a good point. Man.

649
00:27:44,720 --> 00:27:46,679
Speaker 1: By the way, since many of us only purchased a

650
00:27:46,680 --> 00:27:48,840
Speaker 1: few homes at most over the course of our lives,

651
00:27:49,160 --> 00:27:52,919
Speaker 1: were really not terribly effective at the negotiating table. And

652
00:27:52,960 --> 00:27:55,800
Speaker 1: I realized to the negotiating on an investment property or

653
00:27:55,880 --> 00:27:59,080
Speaker 1: potential investment property, it's typically different than when we're buying

654
00:27:59,080 --> 00:28:01,359
Speaker 1: a single family home for us to live in. So like,

655
00:28:01,400 --> 00:28:03,159
Speaker 1: what sort of tips do you have and what have

656
00:28:03,280 --> 00:28:07,960
Speaker 1: you learned in all of these essentially negotiations when you've

657
00:28:07,960 --> 00:28:12,359
Speaker 1: been purchasing investment properties. The biggest mistake people make with

658
00:28:12,400 --> 00:28:15,960
Speaker 1: negotiating is I'm gonna use a poker analogy. Okay. What

659
00:28:16,000 --> 00:28:17,159
Speaker 1: they do is they say, how do I get the

660
00:28:17,160 --> 00:28:20,040
Speaker 1: seller to to take my deal? To take what I want?

661
00:28:20,359 --> 00:28:22,720
Speaker 1: And it's the same as saying, how do I win

662
00:28:22,800 --> 00:28:26,280
Speaker 1: with this pair of fours? Poker players don't think that way.

663
00:28:26,320 --> 00:28:28,200
Speaker 1: They don't think how do I win with a pair

664
00:28:28,240 --> 00:28:32,040
Speaker 1: of fours? They think would I win with this pairaphours?

665
00:28:32,080 --> 00:28:34,880
Speaker 1: What would I have to have to win? And if

666
00:28:34,920 --> 00:28:36,680
Speaker 1: it looks like they're not gonna win, then they get

667
00:28:36,680 --> 00:28:38,120
Speaker 1: out of the deal, They get out of the pot.

668
00:28:38,160 --> 00:28:40,960
Speaker 1: They don't keep on trying to force it. Right. That's

669
00:28:40,960 --> 00:28:43,160
Speaker 1: what I think most real estate investors need to understand.

670
00:28:43,440 --> 00:28:46,960
Speaker 1: If a seller is unreasonable and doesn't understand that they

671
00:28:46,960 --> 00:28:49,840
Speaker 1: have to sell the property, you're not gonna make them

672
00:28:49,920 --> 00:28:52,480
Speaker 1: see right, Like you're literally trying to get a deal

673
00:28:52,560 --> 00:28:54,440
Speaker 1: and they know it. You need to look for the

674
00:28:54,480 --> 00:28:57,400
Speaker 1: person where you have the better hand, where the money

675
00:28:57,400 --> 00:28:59,600
Speaker 1: that you're bringing in the and the chance you have

676
00:28:59,680 --> 00:29:02,880
Speaker 1: to fix the problem is the bigger hand. Compared to

677
00:29:02,920 --> 00:29:05,120
Speaker 1: what they're holding, and that's what you should pursue. And

678
00:29:05,120 --> 00:29:07,400
Speaker 1: that's what I see. The biggest mistake people make negotiating

679
00:29:07,800 --> 00:29:09,840
Speaker 1: is they'll say, hey, this guy's got a property it's

680
00:29:09,880 --> 00:29:12,840
Speaker 1: worth one ten, he wants one forty. What can I

681
00:29:12,880 --> 00:29:14,960
Speaker 1: do to get him to to take my offer of

682
00:29:15,000 --> 00:29:17,160
Speaker 1: one ten? And I would just say, don't. Just like

683
00:29:17,240 --> 00:29:19,880
Speaker 1: let that guy sit there and stewing his own juices

684
00:29:20,240 --> 00:29:22,640
Speaker 1: of anxiety for the next six months or however long

685
00:29:22,680 --> 00:29:24,360
Speaker 1: he can last. And when he comes back to you

686
00:29:24,360 --> 00:29:25,680
Speaker 1: and says I'll do to one ten, say well, now

687
00:29:25,720 --> 00:29:28,240
Speaker 1: I can only do ninety. That's a much better way

688
00:29:28,280 --> 00:29:30,680
Speaker 1: of doing is like, let the other person get motivated.

689
00:29:30,920 --> 00:29:34,080
Speaker 1: When you have a motivated person, now there's actually some

690
00:29:34,120 --> 00:29:37,200
Speaker 1: skill that your negotiation can can work with. Right. That's

691
00:29:37,240 --> 00:29:39,440
Speaker 1: where Okay, I got a good hand, I could win

692
00:29:39,480 --> 00:29:41,880
Speaker 1: this pot. Now your poker skills are actually gonna come

693
00:29:41,920 --> 00:29:44,320
Speaker 1: into play. Don't try to win when you don't have

694
00:29:44,360 --> 00:29:47,480
Speaker 1: a hand that can win, and that's gonna be don't

695
00:29:47,880 --> 00:29:50,400
Speaker 1: go into it with your ego thinking I gotta beat

696
00:29:50,440 --> 00:29:53,000
Speaker 1: this person. Right, You don't want to have that like

697
00:29:53,360 --> 00:29:56,440
Speaker 1: traditional stereotypical Donald Trump type attitude where you want to

698
00:29:56,480 --> 00:29:58,000
Speaker 1: win and you want to rub their nose in it,

699
00:29:58,320 --> 00:30:01,040
Speaker 1: because people will pay you back the first chance they get.

700
00:30:01,720 --> 00:30:04,120
Speaker 1: When you're negotiating, you want to understand the other person's

701
00:30:04,160 --> 00:30:06,760
Speaker 1: position as much as possible and then understand what is

702
00:30:06,800 --> 00:30:09,880
Speaker 1: important to them. So to us, the price is almost

703
00:30:09,880 --> 00:30:12,120
Speaker 1: the only thing we care about. How cheap can I

704
00:30:12,160 --> 00:30:15,040
Speaker 1: get it to them? They're probably selling it because they're

705
00:30:15,080 --> 00:30:19,080
Speaker 1: under an emotion of a fear, of frustration, of anxiety.

706
00:30:19,360 --> 00:30:22,200
Speaker 1: They're feeling something that they don't want to be feeling right,

707
00:30:22,520 --> 00:30:24,160
Speaker 1: and they're not selling the house to you at the

708
00:30:24,200 --> 00:30:26,640
Speaker 1: price you want because they don't want to feel like

709
00:30:26,680 --> 00:30:28,680
Speaker 1: they got taken advantage of. They don't want to feel

710
00:30:28,680 --> 00:30:33,120
Speaker 1: like they got had. They're almost doing this off of emotions.

711
00:30:33,160 --> 00:30:35,440
Speaker 1: So the good negotiator knows how to go in there

712
00:30:35,440 --> 00:30:38,000
Speaker 1: and find out what's important to the other party and

713
00:30:38,040 --> 00:30:42,640
Speaker 1: then give that person permission to solve their own problem

714
00:30:42,640 --> 00:30:44,600
Speaker 1: without feeling bad. So if you go in there and

715
00:30:44,640 --> 00:30:46,040
Speaker 1: you just try to hammer them for the sake of

716
00:30:46,080 --> 00:30:47,800
Speaker 1: hammering them, they may want to give you the deal,

717
00:30:47,840 --> 00:30:49,480
Speaker 1: but now they're saying, well, I'm gonna get rid of

718
00:30:49,480 --> 00:30:51,880
Speaker 1: my emotion of frustration owning a property. But now I'm

719
00:30:51,880 --> 00:30:54,040
Speaker 1: gonna have the emotion of shame that I got how

720
00:30:54,120 --> 00:30:56,120
Speaker 1: I I lost on this deal, and they're not going

721
00:30:56,160 --> 00:30:58,160
Speaker 1: to do it. Find a way to make them feel

722
00:30:58,200 --> 00:31:01,080
Speaker 1: good about giving you the house. You can give them

723
00:31:01,080 --> 00:31:03,880
Speaker 1: a sob story about how you're a struggling college student

724
00:31:03,920 --> 00:31:05,320
Speaker 1: and this is the house that you need so that

725
00:31:05,360 --> 00:31:08,360
Speaker 1: your girlfriend will finally marry you. Like now they've oh,

726
00:31:08,400 --> 00:31:10,360
Speaker 1: they're they're doing a good thing for you. You've given

727
00:31:10,400 --> 00:31:13,600
Speaker 1: them permission inside to take at worst deal for themselves

728
00:31:13,880 --> 00:31:16,080
Speaker 1: to help you out. And I think that that's just

729
00:31:16,120 --> 00:31:18,840
Speaker 1: what people have to understand is human beings. We make

730
00:31:18,880 --> 00:31:22,000
Speaker 1: decisions based on emotions. We do not really ever make

731
00:31:22,000 --> 00:31:25,000
Speaker 1: decisions based on logic. But yet when we're negotiating, we're

732
00:31:25,000 --> 00:31:27,720
Speaker 1: trying to figure out what logical steps can I take

733
00:31:28,000 --> 00:31:29,960
Speaker 1: to get the other person to give me what I want.

734
00:31:30,000 --> 00:31:33,440
Speaker 1: Life just doesn't work that way. That's awesome real quick.

735
00:31:33,440 --> 00:31:36,280
Speaker 1: You mentioned you know we've touched on rehabbing. When you

736
00:31:36,320 --> 00:31:39,080
Speaker 1: are looking at a property, how do you know where

737
00:31:39,120 --> 00:31:42,400
Speaker 1: to draw the line and not over improve a property?

738
00:31:42,440 --> 00:31:43,880
Speaker 1: Like I know for myself this is a sort of

739
00:31:43,880 --> 00:31:46,160
Speaker 1: a personal struggle, right, Like I have a house I

740
00:31:46,160 --> 00:31:48,400
Speaker 1: wanted to look nice. I want to have great wrinters

741
00:31:48,440 --> 00:31:51,880
Speaker 1: in there who appreciate the property. How do you know? Basically, yeah,

742
00:31:51,880 --> 00:31:54,880
Speaker 1: where where to draw that line? That's a really good question.

743
00:31:54,880 --> 00:31:56,280
Speaker 1: So the first thing you have to understand is the

744
00:31:56,320 --> 00:32:00,760
Speaker 1: way that real estate is valued. So single family properties,

745
00:32:00,800 --> 00:32:02,280
Speaker 1: which is what I soon we're talking about right now,

746
00:32:02,280 --> 00:32:05,520
Speaker 1: our value very simply. They just say, what's this, what's

747
00:32:05,560 --> 00:32:07,479
Speaker 1: the other houses around it? What did they sell for?

748
00:32:07,880 --> 00:32:10,440
Speaker 1: And what's this one gonna be worth. It's that simple, right.

749
00:32:11,000 --> 00:32:13,360
Speaker 1: The problem is when people get into thinking like if

750
00:32:13,400 --> 00:32:16,600
Speaker 1: I spend ten thousand on countertops, how much will that

751
00:32:16,680 --> 00:32:19,640
Speaker 1: make my house worth more? And that doesn't work because

752
00:32:19,680 --> 00:32:22,680
Speaker 1: the answer no buyer says, oh I only wanted to

753
00:32:22,680 --> 00:32:24,880
Speaker 1: pay four grand, but I have to pay for ten

754
00:32:24,960 --> 00:32:27,960
Speaker 1: because they have these countertops. People don't think that way.

755
00:32:28,280 --> 00:32:31,000
Speaker 1: What buyers think is which house do I want? And

756
00:32:31,040 --> 00:32:32,560
Speaker 1: then they find it and they say how cheap can

757
00:32:32,600 --> 00:32:34,320
Speaker 1: I get it? And if there's no one else that

758
00:32:34,360 --> 00:32:36,320
Speaker 1: wants the house, they're gonna write as as low of

759
00:32:36,360 --> 00:32:38,120
Speaker 1: an offer as they can get away with. And if

760
00:32:38,120 --> 00:32:39,520
Speaker 1: there's a lot of people that want the house, they're

761
00:32:39,560 --> 00:32:41,120
Speaker 1: gonna write as low as an offer as they think

762
00:32:41,120 --> 00:32:44,080
Speaker 1: they can without losing it. It's that simple. They're pure greed.

763
00:32:44,600 --> 00:32:46,840
Speaker 1: So as a seller, you have to understand that's the

764
00:32:46,840 --> 00:32:49,720
Speaker 1: mindset of the person buying your home. They're not looking

765
00:32:49,760 --> 00:32:52,240
Speaker 1: at it from a mathematical thing that brings comfort like

766
00:32:52,240 --> 00:32:54,520
Speaker 1: it does to you. You know, well, if I spend

767
00:32:54,560 --> 00:32:56,040
Speaker 1: this much money on this floor, and how much more

768
00:32:56,080 --> 00:32:58,320
Speaker 1: would my house be worth? Who knows? It depends on

769
00:32:58,360 --> 00:33:00,440
Speaker 1: how much more it makes somebody want it. It depends

770
00:33:00,440 --> 00:33:02,560
Speaker 1: on all the other houses around it, and how much

771
00:33:02,560 --> 00:33:04,680
Speaker 1: competition you have, right, how many people are trying to

772
00:33:04,680 --> 00:33:06,640
Speaker 1: move into that market, and what it interest rates just

773
00:33:06,760 --> 00:33:10,000
Speaker 1: do you can't think that way. What you can do, though,

774
00:33:10,120 --> 00:33:13,920
Speaker 1: is say what are the other houses around mind selling for?

775
00:33:14,320 --> 00:33:17,240
Speaker 1: Find the one that is closest to yours, and then

776
00:33:17,280 --> 00:33:19,200
Speaker 1: say how much would I have to spend to make

777
00:33:19,280 --> 00:33:22,560
Speaker 1: mine look like that? So if that house is only

778
00:33:22,560 --> 00:33:25,280
Speaker 1: worth ten tho more than yours is, it probably doesn't

779
00:33:25,320 --> 00:33:28,160
Speaker 1: make sense to spend money to make yours look like that.

780
00:33:28,160 --> 00:33:30,400
Speaker 1: That house is worth a hundred thousand dollars more than

781
00:33:30,440 --> 00:33:32,880
Speaker 1: yours is, and you can spend less than a hundred

782
00:33:32,920 --> 00:33:35,760
Speaker 1: thousand dollars, now it would make sense to make that move.

783
00:33:35,840 --> 00:33:38,120
Speaker 1: And that's what people have to understand, is, all right,

784
00:33:38,200 --> 00:33:41,520
Speaker 1: what's the comp the comparable that I'm looking for. How

785
00:33:41,600 --> 00:33:43,360
Speaker 1: much would I have to spend to get to that?

786
00:33:43,920 --> 00:33:46,000
Speaker 1: Then say, would it be worth it? If I can

787
00:33:46,040 --> 00:33:48,200
Speaker 1: spend thirty tho dollars for new flooring in a new

788
00:33:48,240 --> 00:33:50,120
Speaker 1: kitchen and I will make my house look like that

789
00:33:50,160 --> 00:33:53,280
Speaker 1: one that's sold for ninety dollars more, it's worth it.

790
00:33:53,640 --> 00:33:55,920
Speaker 1: But if you if you already have the nicest house

791
00:33:55,920 --> 00:33:58,640
Speaker 1: in the neighborhood or you're close to it, any money

792
00:33:58,640 --> 00:34:01,160
Speaker 1: that you spend is almost worthless. It's just you're you

793
00:34:01,200 --> 00:34:03,360
Speaker 1: can only bring your house up to the best house.

794
00:34:03,400 --> 00:34:05,720
Speaker 1: You can't really go higher than that because the appraisers

795
00:34:05,720 --> 00:34:08,040
Speaker 1: won't give it the value that you want. Yeah, and

796
00:34:08,040 --> 00:34:11,600
Speaker 1: I think, especially when we're talking about our own personal residences,

797
00:34:12,000 --> 00:34:13,799
Speaker 1: that's where a lot of us make big mistakes. And

798
00:34:13,840 --> 00:34:16,759
Speaker 1: we think that a single family home is just this

799
00:34:16,840 --> 00:34:19,200
Speaker 1: great investment, but we tend to over improve where we

800
00:34:19,239 --> 00:34:21,480
Speaker 1: put things in that only we find appealing, and so

801
00:34:21,560 --> 00:34:24,040
Speaker 1: we're not actually thinking about it as an investment until

802
00:34:24,080 --> 00:34:26,520
Speaker 1: we end up spending more money, putting more money into

803
00:34:26,560 --> 00:34:29,319
Speaker 1: a house than it is eventually worth, right, Yeah, and

804
00:34:29,360 --> 00:34:31,840
Speaker 1: then like once you do that, you want to justify

805
00:34:31,880 --> 00:34:33,800
Speaker 1: the money that you already spent because you have an ego,

806
00:34:34,080 --> 00:34:35,920
Speaker 1: so you start telling your agent, well, they need to

807
00:34:36,000 --> 00:34:38,360
Speaker 1: understand I spent this much money, I did this much stuff,

808
00:34:38,480 --> 00:34:41,600
Speaker 1: right Like the buyers care. They don't care, right, Like,

809
00:34:41,680 --> 00:34:44,360
Speaker 1: why would they care? They don't need to understand. Crap,

810
00:34:44,560 --> 00:34:46,960
Speaker 1: You need to understand you were You were foolish to

811
00:34:46,960 --> 00:34:49,440
Speaker 1: spend that money. Let it go. You've already lost it.

812
00:34:49,480 --> 00:34:52,640
Speaker 1: Doesn't psycho, you can't fix it now. Well, David, you

813
00:34:52,640 --> 00:34:54,640
Speaker 1: know we're talking about buying here, we're gonna talk some

814
00:34:54,680 --> 00:34:56,760
Speaker 1: more with you about real estate. We're gonna talk about

815
00:34:56,880 --> 00:34:59,560
Speaker 1: investing in real estate long distance. We're gonna get to

816
00:34:59,600 --> 00:35:09,919
Speaker 1: that rat after of the break. All Right, we'll back.

817
00:35:09,920 --> 00:35:12,040
Speaker 1: We're talking with David Green, co host of the Bigger

818
00:35:12,040 --> 00:35:14,920
Speaker 1: Pockets podcast. We're talking about real estate investing. Matt and

819
00:35:14,920 --> 00:35:17,879
Speaker 1: I love talking about real estate investing, and David, we've

820
00:35:17,880 --> 00:35:20,920
Speaker 1: been talking about the Burr strategy. It's super fascinating. But

821
00:35:21,000 --> 00:35:23,319
Speaker 1: you also mentioned in the last segment that you wrote

822
00:35:23,360 --> 00:35:26,960
Speaker 1: a book about long distance real estate investing. So why

823
00:35:27,160 --> 00:35:29,440
Speaker 1: is it that you mostly invest in real estate that

824
00:35:29,560 --> 00:35:32,880
Speaker 1: isn't anywhere near where you live, because I have to

825
00:35:33,480 --> 00:35:36,080
Speaker 1: where I live, the properties are so expensive that the

826
00:35:36,120 --> 00:35:39,120
Speaker 1: rents can't keep up, and if you buy a property here,

827
00:35:39,239 --> 00:35:41,080
Speaker 1: you will lose money every month, and I just didn't

828
00:35:41,120 --> 00:35:43,719
Speaker 1: want to lose money. Where's here, by the way, I

829
00:35:43,800 --> 00:35:46,359
Speaker 1: live in the San Francisco Bay Area in California. Oh

830
00:35:46,400 --> 00:35:49,160
Speaker 1: so that's a good guests earlier, I assumed you guys

831
00:35:49,160 --> 00:35:51,239
Speaker 1: do that. You did a great job there. Yeah, so

832
00:35:51,280 --> 00:35:53,080
Speaker 1: that's like where I sell houses. Anybody lives out there,

833
00:35:53,080 --> 00:35:54,279
Speaker 1: if they want to buy or sell a house, they

834
00:35:54,320 --> 00:35:56,080
Speaker 1: can let me know. But I do like meet ups

835
00:35:56,080 --> 00:35:58,960
Speaker 1: out here to teach people how to invest in different markets.

836
00:35:59,000 --> 00:36:01,360
Speaker 1: Because you're not gonna buy rental property in this market,

837
00:36:01,520 --> 00:36:03,160
Speaker 1: but I still believe in the power of real estate

838
00:36:03,160 --> 00:36:04,839
Speaker 1: and that you should be buying it. So that book

839
00:36:04,880 --> 00:36:07,160
Speaker 1: was about how to pick a market and really more

840
00:36:07,200 --> 00:36:09,960
Speaker 1: how the systems that I built to be able to

841
00:36:10,040 --> 00:36:13,239
Speaker 1: do it safely. So yeah, those systems, David. When you're

842
00:36:13,239 --> 00:36:15,640
Speaker 1: looking at the different markets, right like that you're considering

843
00:36:16,000 --> 00:36:18,160
Speaker 1: like do you just look at the numbers or are

844
00:36:18,200 --> 00:36:21,640
Speaker 1: you looking at other pieces of news? Right like? Are

845
00:36:21,640 --> 00:36:23,759
Speaker 1: you looking at different industries, Like I'm thinking about the

846
00:36:23,960 --> 00:36:26,520
Speaker 1: HQ two that was supposed to happen in New York, right,

847
00:36:26,560 --> 00:36:28,600
Speaker 1: I can imagine a lot of folks were thinking, Man, really, Stey,

848
00:36:28,640 --> 00:36:30,400
Speaker 1: it's gonna blow up. But then all of a sudden

849
00:36:30,400 --> 00:36:32,319
Speaker 1: that drives up, like are you looking at those sort

850
00:36:32,320 --> 00:36:34,480
Speaker 1: of external factors as well? Are you just looking at

851
00:36:34,480 --> 00:36:37,000
Speaker 1: the numbers? What are you taking into account? You can

852
00:36:37,040 --> 00:36:39,000
Speaker 1: look at the news, like let's say that you're paying

853
00:36:39,040 --> 00:36:41,880
Speaker 1: attention five six years ago and they announced that Tesla

854
00:36:42,000 --> 00:36:44,399
Speaker 1: is going to be moving to Nevada. That's why Reno

855
00:36:44,480 --> 00:36:47,319
Speaker 1: has just blown up incredible since since that news came out,

856
00:36:47,320 --> 00:36:49,239
Speaker 1: that'd been a good chance time to go by. But

857
00:36:49,400 --> 00:36:51,839
Speaker 1: that's still somewhat speculative. I don't do a ton of that.

858
00:36:52,320 --> 00:36:54,520
Speaker 1: What I look at is where are the jobs moving

859
00:36:54,560 --> 00:36:57,400
Speaker 1: to that are paying more? The number one metric I

860
00:36:57,440 --> 00:37:00,239
Speaker 1: care about more than anything else. Like, let me ask you, guys,

861
00:37:00,280 --> 00:37:02,279
Speaker 1: if you think about the last five years or so,

862
00:37:02,680 --> 00:37:06,400
Speaker 1: which cities in the country have blown up the most? Nashville,

863
00:37:06,640 --> 00:37:08,640
Speaker 1: That's that's the first one that comes to my mind.

864
00:37:09,239 --> 00:37:11,360
Speaker 1: In Atlanta, I mean we're here in Atlanta, and I

865
00:37:11,640 --> 00:37:15,040
Speaker 1: mean there's been some incredible growth here in our city, Okay,

866
00:37:15,200 --> 00:37:19,080
Speaker 1: keep going. I think a lot of the south southern

867
00:37:19,080 --> 00:37:22,319
Speaker 1: cities like Austin, Texas. Yeah, and it's kind of these

868
00:37:22,360 --> 00:37:24,719
Speaker 1: mid tier midsize cities that are really growing the most.

869
00:37:25,600 --> 00:37:28,680
Speaker 1: So it's true that in general that there's growth in

870
00:37:28,680 --> 00:37:31,480
Speaker 1: those areas. But if you look at what's exploding, it's

871
00:37:31,480 --> 00:37:36,799
Speaker 1: been San Francisco, Seattle, Portland's Austin. You guys mentioned west

872
00:37:36,840 --> 00:37:40,520
Speaker 1: coast cities, huh, well, not just west coast cities like Madison,

873
00:37:40,520 --> 00:37:43,840
Speaker 1: Wisconsin has had some rapid growth. Trying to think of

874
00:37:43,880 --> 00:37:45,439
Speaker 1: anywhere else that I can think of on the East

875
00:37:45,440 --> 00:37:48,160
Speaker 1: coast where In general, though, that what you're seeing is

876
00:37:48,200 --> 00:37:51,440
Speaker 1: that areas where tech companies are moving to are having

877
00:37:51,680 --> 00:37:55,480
Speaker 1: incredible rises right now. And it's not because of tech.

878
00:37:55,600 --> 00:37:58,879
Speaker 1: It's because that tech brings high wages. When people make

879
00:37:58,880 --> 00:38:00,440
Speaker 1: a lot more, they can pay a lot more for

880
00:38:00,480 --> 00:38:02,360
Speaker 1: a house, and as long as there's a limited supply,

881
00:38:02,640 --> 00:38:05,120
Speaker 1: housing prices go up. Like if a tech company moved

882
00:38:05,120 --> 00:38:06,919
Speaker 1: to Kansas, it probably woudn't matter because they can build

883
00:38:06,920 --> 00:38:10,280
Speaker 1: so many houses there they never go up. So in general,

884
00:38:10,680 --> 00:38:13,000
Speaker 1: that's what I look for, Where are the high paying

885
00:38:13,080 --> 00:38:15,319
Speaker 1: jobs going to move to. And the second thing would

886
00:38:15,360 --> 00:38:17,560
Speaker 1: be where are jobs in general moving to. So the

887
00:38:17,560 --> 00:38:21,000
Speaker 1: reason that Atlanta is is so so popular is there's

888
00:38:21,080 --> 00:38:23,560
Speaker 1: a ton of companies that are moving there because it

889
00:38:23,680 --> 00:38:25,759
Speaker 1: is so much cheaper to run a business, and then

890
00:38:25,800 --> 00:38:27,400
Speaker 1: people need somewhere to live, and so you get all

891
00:38:27,400 --> 00:38:29,480
Speaker 1: these investors that dump their money into Man, I've been

892
00:38:29,480 --> 00:38:31,160
Speaker 1: in Atlanta a couple of times. I've been on CNN,

893
00:38:31,280 --> 00:38:33,760
Speaker 1: like you guys mentioned, and that's where we record every

894
00:38:33,760 --> 00:38:37,160
Speaker 1: time I go. There's new multi family apartments everywhere, and

895
00:38:37,200 --> 00:38:39,360
Speaker 1: that I mean, you can't drive around without seeing fifty

896
00:38:39,560 --> 00:38:43,799
Speaker 1: nothing yeah, everywhere. And and Austin looks very similar, like

897
00:38:43,880 --> 00:38:46,240
Speaker 1: there's a lot of cities where you see that in general,

898
00:38:46,280 --> 00:38:48,279
Speaker 1: that's the southeast right now, you know. So that's the

899
00:38:48,320 --> 00:38:49,799
Speaker 1: area that I want to be because that's where people

900
00:38:49,840 --> 00:38:52,960
Speaker 1: are all moving to. So one of the biggest difficulties

901
00:38:53,040 --> 00:38:56,839
Speaker 1: right in long distance landlording, long distance real estate is

902
00:38:57,000 --> 00:38:59,160
Speaker 1: building a team, is having the people on the ground

903
00:38:59,440 --> 00:39:03,560
Speaker 1: who can carry out kind of your vision for buying properties.

904
00:39:03,600 --> 00:39:05,799
Speaker 1: And so Matt and I we've never gotten into that.

905
00:39:05,840 --> 00:39:08,640
Speaker 1: We buy we bought locally. We we really own and

906
00:39:08,719 --> 00:39:11,319
Speaker 1: manage the stuff that we have in a really close

907
00:39:11,440 --> 00:39:14,040
Speaker 1: vicinity to where we live. So how would you Let's

908
00:39:14,040 --> 00:39:15,839
Speaker 1: say you're talking to Matt and I and you're trying

909
00:39:15,840 --> 00:39:19,239
Speaker 1: to convince us to start investing in other markets, what

910
00:39:19,280 --> 00:39:21,920
Speaker 1: would you say are the first steps, the first things

911
00:39:22,120 --> 00:39:23,799
Speaker 1: for us to do to build that team to kind

912
00:39:23,800 --> 00:39:27,120
Speaker 1: of help us achieve that goal. So in the book,

913
00:39:27,120 --> 00:39:29,160
Speaker 1: I talked about this concept I really believe in that

914
00:39:29,239 --> 00:39:32,279
Speaker 1: rock stars no rock stars. So there's this principle that

915
00:39:32,320 --> 00:39:35,000
Speaker 1: I that I go by that people that are really

916
00:39:35,040 --> 00:39:37,040
Speaker 1: good at what they do, they want to be around

917
00:39:37,080 --> 00:39:39,080
Speaker 1: other people that are really good at what they do.

918
00:39:39,440 --> 00:39:43,239
Speaker 1: So like when Tiger Woods was dominating golf, his best

919
00:39:43,280 --> 00:39:46,560
Speaker 1: friend was Roger Federer, a Swedish tennis player that had

920
00:39:46,600 --> 00:39:49,360
Speaker 1: nothing to do with Tiger Woods other than the fact

921
00:39:49,360 --> 00:39:52,880
Speaker 1: that Roger Federer was dominating tennis. It's neither one of

922
00:39:52,920 --> 00:39:55,359
Speaker 1: them were losing, and that made that created a bond

923
00:39:55,360 --> 00:39:57,720
Speaker 1: between them where they became friends. You know, Michael Jordan

924
00:39:57,840 --> 00:40:00,000
Speaker 1: was friends with the other All Stars, he wasn't necessarily

925
00:40:00,120 --> 00:40:02,520
Speaker 1: friends with the bench players on his own team. And

926
00:40:02,520 --> 00:40:05,200
Speaker 1: and we see that principle all throughout successful people. And

927
00:40:05,239 --> 00:40:06,440
Speaker 1: we also see it on the other end of the

928
00:40:06,480 --> 00:40:09,080
Speaker 1: spectrum working as a cop. The guys that were in jail,

929
00:40:09,239 --> 00:40:11,600
Speaker 1: they're not hanging out with rock stars, right, They're looking

930
00:40:11,600 --> 00:40:13,240
Speaker 1: for people at kind of the bottom of the barrel

931
00:40:13,280 --> 00:40:15,600
Speaker 1: of society because they make it feel more comfortable about

932
00:40:15,600 --> 00:40:17,839
Speaker 1: the fact that they're not doing very well, and that's

933
00:40:17,840 --> 00:40:21,040
Speaker 1: who they like to associate with. So once I realized

934
00:40:21,080 --> 00:40:23,320
Speaker 1: that that, like birds of a feather flock together, however

935
00:40:23,360 --> 00:40:25,080
Speaker 1: you want to say it, what I knew is that

936
00:40:25,120 --> 00:40:27,319
Speaker 1: if I can become friends with a rock star, I

937
00:40:27,360 --> 00:40:29,880
Speaker 1: could get into their inner circle. So the first thing

938
00:40:29,920 --> 00:40:32,120
Speaker 1: I do is I look for a top producing rock

939
00:40:32,200 --> 00:40:34,400
Speaker 1: star real estate agent and convinced them that they should

940
00:40:34,400 --> 00:40:36,600
Speaker 1: work with me. Now, most people make the mistake of

941
00:40:36,600 --> 00:40:39,759
Speaker 1: approaching an agent like, well, there's you and five other ones.

942
00:40:39,800 --> 00:40:42,120
Speaker 1: We'll see who's the best, you know, and the rock

943
00:40:42,160 --> 00:40:44,440
Speaker 1: star would never put up with that. Ever, you know,

944
00:40:44,520 --> 00:40:46,440
Speaker 1: the hot girl at the bar who's got everybody approaching

945
00:40:46,440 --> 00:40:48,560
Speaker 1: her isn't gonna like, oh, I'm going to compete for

946
00:40:48,600 --> 00:40:51,520
Speaker 1: you guy. You know, if that's the way you approach her,

947
00:40:51,520 --> 00:40:53,719
Speaker 1: she's like, I don't care. I've got fifty other guys

948
00:40:53,800 --> 00:40:55,839
Speaker 1: that I can talk to instead. And that's how it

949
00:40:55,880 --> 00:40:57,960
Speaker 1: is with top producing agents as well, So you've got

950
00:40:57,960 --> 00:40:59,920
Speaker 1: to bring your a game to convince that agents work

951
00:41:00,000 --> 00:41:02,359
Speaker 1: with you. But if you can get them too, you're

952
00:41:02,360 --> 00:41:04,640
Speaker 1: gonna get access to all their rock star friends. They

953
00:41:04,640 --> 00:41:06,920
Speaker 1: know the best lenders, they know the best contractors, they

954
00:41:06,960 --> 00:41:09,320
Speaker 1: know the best property managers, they know the best handymen.

955
00:41:09,880 --> 00:41:12,160
Speaker 1: They are the people who know the people that you need,

956
00:41:12,520 --> 00:41:14,600
Speaker 1: and from there you just slowly start to expand you

957
00:41:14,600 --> 00:41:16,800
Speaker 1: get a great agent tells you about a great property manager.

958
00:41:16,880 --> 00:41:19,440
Speaker 1: The property manager knows a gay contractor a great handyman.

959
00:41:19,719 --> 00:41:21,359
Speaker 1: You got that person on your team. You ask all

960
00:41:21,360 --> 00:41:23,839
Speaker 1: three of them, who's the best lender that I could use? Well,

961
00:41:23,880 --> 00:41:26,160
Speaker 1: they know because they all work with investors, so they

962
00:41:26,160 --> 00:41:29,200
Speaker 1: have to have investor friendly lenders in order to close deals.

963
00:41:29,239 --> 00:41:31,120
Speaker 1: And that, to me is the best way I found

964
00:41:31,160 --> 00:41:33,680
Speaker 1: to build a team. So basically, it sounds like what

965
00:41:33,719 --> 00:41:35,680
Speaker 1: you're saying is that it's a domino effect of a

966
00:41:35,680 --> 00:41:38,000
Speaker 1: certain sort. You find the one awesome rock star and

967
00:41:38,000 --> 00:41:39,720
Speaker 1: they kind of helped connect you to the other awesome

968
00:41:39,719 --> 00:41:44,000
Speaker 1: people you need to know, Yes, but the first step

969
00:41:44,000 --> 00:41:46,200
Speaker 1: in that domino thing is not to find the rock star.

970
00:41:46,480 --> 00:41:48,600
Speaker 1: It's to be a rock star. So that when you

971
00:41:48,640 --> 00:41:51,520
Speaker 1: find them, they'll work with you. David, you've told folks

972
00:41:51,560 --> 00:41:53,759
Speaker 1: to double down on what you're good at and high

973
00:41:53,800 --> 00:41:56,319
Speaker 1: out stuff that you're not good at. Do you mind

974
00:41:56,360 --> 00:41:58,959
Speaker 1: sharing like some personal examples like what are those things

975
00:41:58,960 --> 00:42:02,960
Speaker 1: for you? Like earlier mentioned uh, like managing properties? That

976
00:42:03,000 --> 00:42:05,239
Speaker 1: doesn't sound like that's your thing? What are some of

977
00:42:05,280 --> 00:42:07,840
Speaker 1: those other things for you? And instead? What are you

978
00:42:07,880 --> 00:42:10,719
Speaker 1: focusing on? Dude? It's that there are so many things

979
00:42:10,719 --> 00:42:12,600
Speaker 1: that are not my thing. That's why I laughed, like

980
00:42:13,520 --> 00:42:15,920
Speaker 1: I really just like almost everything is not my thing.

981
00:42:15,920 --> 00:42:18,040
Speaker 1: There's a lot I'm not good at. My best trade

982
00:42:18,080 --> 00:42:20,080
Speaker 1: is I'm humble enough to just say I suck it

983
00:42:20,239 --> 00:42:22,520
Speaker 1: a lot. So I think that's why I've been so

984
00:42:22,560 --> 00:42:24,960
Speaker 1: good at the businesses I've done. Is I don't have

985
00:42:25,120 --> 00:42:27,200
Speaker 1: enough pride that I'm trying to convince myself I can

986
00:42:27,239 --> 00:42:30,719
Speaker 1: do it Allso I'm terrible at being organized. I like

987
00:42:30,880 --> 00:42:33,520
Speaker 1: that the thrill of the hunt. I like to take

988
00:42:33,560 --> 00:42:36,560
Speaker 1: down the property. I don't mind the scary hard stuff,

989
00:42:36,600 --> 00:42:40,400
Speaker 1: the negotiating the conflict. How am I gonna fix this problem?

990
00:42:40,480 --> 00:42:42,799
Speaker 1: The minute I've taken that thing down, all the little

991
00:42:42,800 --> 00:42:47,640
Speaker 1: paper cuts, like calling to turn the utilities on scheduling

992
00:42:47,640 --> 00:42:49,680
Speaker 1: a call with the contractor to listen to him tell

993
00:42:49,719 --> 00:42:51,959
Speaker 1: me what he did all of that stuff. That really

994
00:42:52,000 --> 00:42:54,200
Speaker 1: is the easy part. I just poked my out with

995
00:42:54,239 --> 00:42:56,440
Speaker 1: the pen. I can't stand it, right, I just I

996
00:42:56,480 --> 00:42:58,799
Speaker 1: don't want to do it at all. So the first

997
00:42:58,800 --> 00:43:00,520
Speaker 1: thing I have to do is to like create a

998
00:43:00,600 --> 00:43:02,719
Speaker 1: checklist of all the stuff that has to get done

999
00:43:03,200 --> 00:43:05,520
Speaker 1: and assigned almost all of it to somebody else who

1000
00:43:05,560 --> 00:43:10,720
Speaker 1: likes administrative organizational type things. And are these people typically

1001
00:43:10,719 --> 00:43:13,120
Speaker 1: that you have on your payroll? That are they work

1002
00:43:13,200 --> 00:43:15,920
Speaker 1: for David Green and and And you're basically like, listen,

1003
00:43:16,280 --> 00:43:18,400
Speaker 1: you're doing all this crummy work that I'm not into.

1004
00:43:18,440 --> 00:43:20,640
Speaker 1: But you know what, it's because you're you're on my

1005
00:43:20,640 --> 00:43:23,000
Speaker 1: team because you're good at it. Yeah, but see that.

1006
00:43:22,960 --> 00:43:24,680
Speaker 1: The thing that I didn't realize until I did this

1007
00:43:24,719 --> 00:43:26,839
Speaker 1: for a while is that cremy work is what they

1008
00:43:26,880 --> 00:43:29,319
Speaker 1: think is like the most fun part. That's all they

1009
00:43:29,320 --> 00:43:31,480
Speaker 1: want to do, right. They are terrified of being the

1010
00:43:31,480 --> 00:43:33,680
Speaker 1: one to make the decision to put the money into

1011
00:43:33,719 --> 00:43:36,200
Speaker 1: the deal, to to deal with the problem when it

1012
00:43:36,239 --> 00:43:38,000
Speaker 1: comes up. They don't want to make a mistake. They

1013
00:43:38,080 --> 00:43:40,040
Speaker 1: love the comfort that comes from all I have to

1014
00:43:40,080 --> 00:43:42,000
Speaker 1: do is call the water company and put on the water.

1015
00:43:42,200 --> 00:43:44,120
Speaker 1: All I have to do is ask the property manager

1016
00:43:44,160 --> 00:43:46,480
Speaker 1: if the people showed up with the stuff yet, like

1017
00:43:46,600 --> 00:43:49,560
Speaker 1: they like doing that. So once I saw that, I

1018
00:43:49,600 --> 00:43:52,520
Speaker 1: got a lot more confidence in like leveraging stuff off.

1019
00:43:52,920 --> 00:43:55,920
Speaker 1: So anything that has to do with asset management, I

1020
00:43:55,920 --> 00:43:57,480
Speaker 1: don't want to do it. Deal with it. I don't

1021
00:43:57,480 --> 00:43:59,960
Speaker 1: even want to put like the stuff into a spread

1022
00:44:00,040 --> 00:44:01,840
Speaker 1: sheet to see who paid their rent this month. I

1023
00:44:01,880 --> 00:44:04,279
Speaker 1: have somebody else does that, and he just comes and

1024
00:44:04,320 --> 00:44:07,279
Speaker 1: tells me here's all the people that didn't pay. And

1025
00:44:07,320 --> 00:44:09,880
Speaker 1: when I see, like what didn't happen, I'm happy to

1026
00:44:09,880 --> 00:44:11,799
Speaker 1: come up with a creative solution to figure it out.

1027
00:44:11,960 --> 00:44:13,600
Speaker 1: But don't ask me to call someone and tell him

1028
00:44:13,600 --> 00:44:15,880
Speaker 1: what it is. Now I'm irritated again. He's got to

1029
00:44:15,960 --> 00:44:17,839
Speaker 1: go call those people and say, here's what David said,

1030
00:44:17,880 --> 00:44:19,640
Speaker 1: this is what he wants to be done. So I

1031
00:44:19,680 --> 00:44:22,880
Speaker 1: would just encourage everybody who's here, like, there's not a

1032
00:44:22,880 --> 00:44:26,440
Speaker 1: business in the world that, if it's profitable, you can't

1033
00:44:26,560 --> 00:44:30,040
Speaker 1: pay somebody else to do the parts you don't like. Yeah,

1034
00:44:30,200 --> 00:44:31,920
Speaker 1: I mean that. I think it's great advice, dude. All right,

1035
00:44:31,960 --> 00:44:34,279
Speaker 1: So We got one final question for you here. I

1036
00:44:34,320 --> 00:44:37,160
Speaker 1: want to know how would you recommend folks are listening

1037
00:44:37,480 --> 00:44:39,560
Speaker 1: to evaluate whether or not they should get into real

1038
00:44:39,680 --> 00:44:43,279
Speaker 1: estate investing in general? Is it for everyone? And if

1039
00:44:43,360 --> 00:44:45,960
Speaker 1: it's not, how do people know that it's not for them?

1040
00:44:46,080 --> 00:44:48,759
Speaker 1: If you're the type of person who just needs a

1041
00:44:48,840 --> 00:44:51,600
Speaker 1: quick fix, you just the you're high off of the

1042
00:44:51,640 --> 00:44:55,160
Speaker 1: excitement of like day training, Okay, real estate of s

1043
00:44:55,200 --> 00:44:57,000
Speaker 1: thing is not for you. This is a get rich

1044
00:44:57,040 --> 00:45:00,320
Speaker 1: slow game. This is like planning a seed. Why uttering

1045
00:45:00,320 --> 00:45:02,160
Speaker 1: it in the beginning, getting it to grow, and then

1046
00:45:02,239 --> 00:45:04,480
Speaker 1: just hiring someone else to come and water and put

1047
00:45:04,480 --> 00:45:07,000
Speaker 1: fertilizer around that seat until it becomes a tree. And

1048
00:45:07,080 --> 00:45:09,040
Speaker 1: you don't get to actually benefit it from it until

1049
00:45:09,040 --> 00:45:11,160
Speaker 1: that tree is mature and it's producing fruit that you

1050
00:45:11,160 --> 00:45:13,320
Speaker 1: get to eat or sell or whatever you want to do.

1051
00:45:13,400 --> 00:45:15,399
Speaker 1: Chopped down part of the trees, firewood, let it grow

1052
00:45:15,440 --> 00:45:17,920
Speaker 1: back however you want to handle that. It's not for

1053
00:45:17,960 --> 00:45:20,400
Speaker 1: the people that need im media gratification at all. So

1054
00:45:20,440 --> 00:45:22,440
Speaker 1: that's the that's the first person I would say it's

1055
00:45:22,520 --> 00:45:26,080
Speaker 1: not for for you. It's also not for people that

1056
00:45:26,320 --> 00:45:29,400
Speaker 1: need a high degree of control and certainty over what

1057
00:45:29,440 --> 00:45:33,520
Speaker 1: they do, Like, I just I don't know what's gonna happen.

1058
00:45:33,760 --> 00:45:36,280
Speaker 1: Hurricane Dorian just came through Florida. I've got like twenty

1059
00:45:36,320 --> 00:45:38,680
Speaker 1: properties there, and everybody's like, oh my god, what are

1060
00:45:38,680 --> 00:45:40,719
Speaker 1: you gonna do? I'm not. I'm gonna wait and see

1061
00:45:40,760 --> 00:45:43,120
Speaker 1: what happens and then figure out if I should make

1062
00:45:43,160 --> 00:45:45,040
Speaker 1: an insurance claim or if I should just dump money

1063
00:45:45,040 --> 00:45:46,960
Speaker 1: into it. What I did was put a bunch of

1064
00:45:46,960 --> 00:45:48,880
Speaker 1: money away in reserve so that if this happened, I

1065
00:45:48,880 --> 00:45:50,839
Speaker 1: didn't freak out. So I'm not going to freak out.

1066
00:45:51,120 --> 00:45:52,960
Speaker 1: But I don't know what's going to happen. I don't

1067
00:45:52,960 --> 00:45:54,480
Speaker 1: know what I'm gonna have an eviction. I don't know

1068
00:45:54,560 --> 00:45:56,359
Speaker 1: if someone's gonna die in the house. I don't know

1069
00:45:56,840 --> 00:45:59,719
Speaker 1: if the tenant's gonna like lose their job. So if

1070
00:45:59,719 --> 00:46:02,719
Speaker 1: you have to operate in a state of like, engineers

1071
00:46:02,760 --> 00:46:05,200
Speaker 1: have a really hard time with real estate investing because

1072
00:46:05,200 --> 00:46:09,120
Speaker 1: they like to control the environment around them. Yeah right,

1073
00:46:09,239 --> 00:46:10,759
Speaker 1: I mean, try to work with one of those guys

1074
00:46:10,800 --> 00:46:13,359
Speaker 1: helping them buy a house. They just it's nuts because

1075
00:46:13,400 --> 00:46:15,319
Speaker 1: they just want to account for everything they could go wrong,

1076
00:46:15,360 --> 00:46:20,000
Speaker 1: and all the questions, all the spreadsheets, too many spreadsheets. Probably. Yeah, Yes,

1077
00:46:20,080 --> 00:46:22,200
Speaker 1: it's different. It's more like poker. You don't know what

1078
00:46:22,239 --> 00:46:24,360
Speaker 1: cards you're gonna get. But when you get the good cards,

1079
00:46:24,360 --> 00:46:26,080
Speaker 1: you play them. When you don't get good cards, you

1080
00:46:26,120 --> 00:46:28,160
Speaker 1: don't play it, and you learn how to play the cards,

1081
00:46:28,160 --> 00:46:30,480
Speaker 1: you get better. And the longer you do this that like,

1082
00:46:30,520 --> 00:46:32,880
Speaker 1: it's why the same poker players always end up at

1083
00:46:32,920 --> 00:46:35,719
Speaker 1: the winner's table. It's not luck, but they don't know

1084
00:46:35,760 --> 00:46:37,479
Speaker 1: what cards they're gonna get. They don't know what cards

1085
00:46:37,560 --> 00:46:39,680
Speaker 1: the opponent has either. All you know is the part

1086
00:46:39,760 --> 00:46:41,160
Speaker 1: you can see, and you see the best you can

1087
00:46:41,560 --> 00:46:43,919
Speaker 1: with that, and then you let inflation do its job

1088
00:46:43,960 --> 00:46:45,879
Speaker 1: and make you look like a genius thirty years later,

1089
00:46:45,880 --> 00:46:49,040
Speaker 1: when you're thirty eight thousand dollar houses worth four thousand dollars.

1090
00:46:49,360 --> 00:46:51,520
Speaker 1: It's very clear that we've been talking to a real

1091
00:46:51,600 --> 00:46:53,759
Speaker 1: estate rock star here today. Man, We really appreciate you

1092
00:46:53,840 --> 00:46:56,640
Speaker 1: taking the time to talk with us today. Where can

1093
00:46:56,680 --> 00:46:59,080
Speaker 1: folks find you if they want to learn more about

1094
00:46:59,280 --> 00:47:01,600
Speaker 1: whether it be the BURS strategy, whether it be just

1095
00:47:01,800 --> 00:47:03,839
Speaker 1: learning more about how to invest in real estate working

1096
00:47:03,880 --> 00:47:06,720
Speaker 1: folks find you online? That's awesome, Man. I run a blog,

1097
00:47:06,800 --> 00:47:09,239
Speaker 1: green income dot Com, a green spelled like my name

1098
00:47:09,280 --> 00:47:11,000
Speaker 1: with an E at the end of Green, where I

1099
00:47:11,080 --> 00:47:13,680
Speaker 1: post articles I've written. Every time I'm interviewed on a

1100
00:47:13,719 --> 00:47:15,880
Speaker 1: podcast like this one or radio show, I put that

1101
00:47:15,960 --> 00:47:17,560
Speaker 1: up on the website so people can listen to it

1102
00:47:17,600 --> 00:47:19,440
Speaker 1: if they want to hear more of me. I'm on

1103
00:47:19,520 --> 00:47:23,040
Speaker 1: Bigger Pockets dot com. That's really like an amazing resource

1104
00:47:23,120 --> 00:47:25,280
Speaker 1: that people want to learn about real estate investing in general.

1105
00:47:25,400 --> 00:47:27,319
Speaker 1: It's all free. There's a forum. You can ask any

1106
00:47:27,400 --> 00:47:30,120
Speaker 1: questions you want, read other people's questions, read blog articles,

1107
00:47:30,120 --> 00:47:32,600
Speaker 1: listen to our podcast. But if they want to communicate

1108
00:47:32,600 --> 00:47:35,120
Speaker 1: with me directly, like they have a you know, want

1109
00:47:35,120 --> 00:47:36,520
Speaker 1: to buy or sell a house, or they want to

1110
00:47:36,560 --> 00:47:38,319
Speaker 1: get connected with an agent in a market that they

1111
00:47:38,320 --> 00:47:41,080
Speaker 1: want to go into or something, Instagram is by far

1112
00:47:41,239 --> 00:47:42,600
Speaker 1: the best way to get ahold of me. If you

1113
00:47:42,640 --> 00:47:44,440
Speaker 1: send me a message on Instagram, there's a very good

1114
00:47:44,480 --> 00:47:46,920
Speaker 1: chance I'm gonna get back to you, as long as

1115
00:47:46,960 --> 00:47:48,919
Speaker 1: you send it prudently. Don't send like one of those

1116
00:47:48,920 --> 00:47:52,719
Speaker 1: seven page messages asking me to analyze the deal for

1117
00:47:52,760 --> 00:47:54,600
Speaker 1: someone I don't know type of a thing. But my

1118
00:47:54,680 --> 00:47:57,200
Speaker 1: Instagram handles David Green twenty four and that's pretty much

1119
00:47:57,200 --> 00:48:01,440
Speaker 1: what it's for all social media LinkedIn Facebook, Instagram, Twitter, anything, snapchat.

1120
00:48:01,480 --> 00:48:03,759
Speaker 1: I think even same stuff. Yeah, if you're gonna try

1121
00:48:03,760 --> 00:48:06,279
Speaker 1: to holler David, be cool, be chill, uh send a

1122
00:48:06,360 --> 00:48:09,000
Speaker 1: nice sweet message. Yeah, there you go. It's the same,

1123
00:48:09,280 --> 00:48:11,000
Speaker 1: you know, Brandon, I actually talked about that a lot,

1124
00:48:11,080 --> 00:48:13,239
Speaker 1: like the right way to approach somebody to get what

1125
00:48:13,320 --> 00:48:15,160
Speaker 1: you want. And there's been a couple of people that

1126
00:48:15,239 --> 00:48:17,120
Speaker 1: got their feathers ruffled a little bit, like they just

1127
00:48:17,120 --> 00:48:19,480
Speaker 1: have an attitude that someone should just reply to them

1128
00:48:19,520 --> 00:48:21,680
Speaker 1: just because. But life doesn't work that way. It's like

1129
00:48:21,719 --> 00:48:23,000
Speaker 1: I was saying, if you want to get the best

1130
00:48:23,000 --> 00:48:25,760
Speaker 1: agents work with you, you gotta approach them the right way.

1131
00:48:25,880 --> 00:48:27,839
Speaker 1: If you want to get a radio station to play

1132
00:48:27,840 --> 00:48:30,040
Speaker 1: your show, you gotta approach them the right way. If

1133
00:48:30,040 --> 00:48:31,880
Speaker 1: you want to get any kind of success from a

1134
00:48:31,880 --> 00:48:34,799
Speaker 1: successful person, there's like a nuance and a skill to

1135
00:48:34,880 --> 00:48:37,720
Speaker 1: learning how to communicate and how to bring value first,

1136
00:48:37,800 --> 00:48:40,319
Speaker 1: And that comes up and realist in investing all the

1137
00:48:40,400 --> 00:48:42,839
Speaker 1: time all the time. You want that contractor to work

1138
00:48:42,880 --> 00:48:46,120
Speaker 1: for you, you you gotta figure out how to talk to him. Yeah, completely, dude,

1139
00:48:46,160 --> 00:48:48,600
Speaker 1: I completely agree. Well, David, seriously, man, thank you so

1140
00:48:48,680 --> 00:48:51,040
Speaker 1: much for taking the time, and I learned a lot today.

1141
00:48:51,080 --> 00:48:53,640
Speaker 1: I really appreciated talking to you. You know what, I'm

1142
00:48:53,640 --> 00:48:56,080
Speaker 1: gonna consider long distance real estate investing now. So yeah,

1143
00:48:56,200 --> 00:48:58,359
Speaker 1: we really appreciate you joining us on the show today. Yeah,

1144
00:48:58,360 --> 00:49:01,279
Speaker 1: thanks again, David. Thanks guys. I had a last all right, Matt,

1145
00:49:01,280 --> 00:49:03,600
Speaker 1: that was a great conversation with David Green. I really

1146
00:49:03,600 --> 00:49:05,799
Speaker 1: appreciated giving a little peek behind the curtain of how

1147
00:49:05,840 --> 00:49:08,279
Speaker 1: he got started even just being a waiter and what

1148
00:49:08,360 --> 00:49:10,680
Speaker 1: he learned there and how that influenced him becoming a

1149
00:49:10,719 --> 00:49:12,920
Speaker 1: real estate invester. But I want to know, Matt, what

1150
00:49:13,080 --> 00:49:15,920
Speaker 1: is your big takeaway from this episode? Yeah, Joel, my

1151
00:49:16,000 --> 00:49:19,360
Speaker 1: big takeaway was David's response when you're asking him about

1152
00:49:19,440 --> 00:49:22,319
Speaker 1: tips for negotiating. He compared it to a poker hand,

1153
00:49:22,400 --> 00:49:25,000
Speaker 1: and he said that all too often we are we've

1154
00:49:25,040 --> 00:49:26,719
Speaker 1: you know, we've got a bad hand. I think he said,

1155
00:49:26,760 --> 00:49:29,440
Speaker 1: a pair of fours, and so often we are trying

1156
00:49:29,480 --> 00:49:31,759
Speaker 1: to make that pair of four's work, right, Like we're

1157
00:49:31,760 --> 00:49:34,040
Speaker 1: trying to win the hand with a pair of fours,

1158
00:49:34,080 --> 00:49:35,520
Speaker 1: and that's just not going to be the case. And

1159
00:49:35,560 --> 00:49:37,640
Speaker 1: what that takes is a knowledge of the market and

1160
00:49:37,760 --> 00:49:40,880
Speaker 1: knowing if a property, is that pair of fours, or

1161
00:49:40,920 --> 00:49:42,680
Speaker 1: if you've got a full house or pocket aces right,

1162
00:49:42,719 --> 00:49:44,920
Speaker 1: like something where you know that you've got a great

1163
00:49:45,040 --> 00:49:48,000
Speaker 1: chance of winning the hand. And he just said all

1164
00:49:48,040 --> 00:49:50,960
Speaker 1: too often that we are just trying to force that hand. Right,

1165
00:49:51,160 --> 00:49:53,239
Speaker 1: we find a property that we love, we're emotionally tied

1166
00:49:53,280 --> 00:49:55,120
Speaker 1: to it. He talked a lot about emotions. I really

1167
00:49:55,120 --> 00:49:57,839
Speaker 1: like that. I think emotions play a huge role in

1168
00:49:58,160 --> 00:50:00,200
Speaker 1: the money mistakes that we make a lot of times. Right,

1169
00:50:00,360 --> 00:50:02,319
Speaker 1: But when you're emotionally tied to a house, a lot

1170
00:50:02,360 --> 00:50:04,319
Speaker 1: of times, it doesn't matter what the numbers say because

1171
00:50:04,320 --> 00:50:06,000
Speaker 1: you're not looking at the numbers. You're not looking at

1172
00:50:06,040 --> 00:50:08,120
Speaker 1: the actual facts. You're you're going off of your gut,

1173
00:50:08,160 --> 00:50:10,480
Speaker 1: you're going off of your fears. And instead we need

1174
00:50:10,520 --> 00:50:12,200
Speaker 1: to look at the actual numbers. We need to to

1175
00:50:12,280 --> 00:50:14,799
Speaker 1: run the analysis and figure out what the return on

1176
00:50:14,840 --> 00:50:16,640
Speaker 1: investment is going to be for that property. And if

1177
00:50:16,640 --> 00:50:18,160
Speaker 1: the hand is not good, we need to know when

1178
00:50:18,160 --> 00:50:19,759
Speaker 1: to fold and just kind of walk away from that

1179
00:50:19,800 --> 00:50:22,560
Speaker 1: deal altogether. There's some song it says, you gotta know

1180
00:50:22,560 --> 00:50:24,560
Speaker 1: when to hold them, you gotta know when to fold them,

1181
00:50:24,640 --> 00:50:25,840
Speaker 1: you gotta know when to walk with I don't know.

1182
00:50:25,840 --> 00:50:27,319
Speaker 1: I think that's how it goes. Some sort of country.

1183
00:50:27,400 --> 00:50:29,560
Speaker 1: Was the country song? I don't listen to country, it's

1184
00:50:29,600 --> 00:50:32,839
Speaker 1: that Garth Brooks. You're more into like the All Americana. Yeah,

1185
00:50:32,920 --> 00:50:34,759
Speaker 1: I like that, but I don't I could. Honestly, I

1186
00:50:34,760 --> 00:50:36,560
Speaker 1: couldn't tell you who's saying that song, and I probably

1187
00:50:36,600 --> 00:50:38,440
Speaker 1: should be able to because it's quite popular. I just

1188
00:50:38,440 --> 00:50:40,759
Speaker 1: remember boot Scoot Boogie back in the day, A key

1189
00:50:40,800 --> 00:50:44,200
Speaker 1: bricky heart. Yeah, man, Yeah, But for you, man, what

1190
00:50:44,320 --> 00:50:46,800
Speaker 1: was your big takeaway? Yeah? I think my big takeaway

1191
00:50:46,920 --> 00:50:50,879
Speaker 1: was that long distance real estate investing is viable. It's

1192
00:50:50,880 --> 00:50:52,239
Speaker 1: something that can make a lot of sense for a

1193
00:50:52,280 --> 00:50:54,160
Speaker 1: lot of people. For me and my family, we've been

1194
00:50:54,200 --> 00:50:56,239
Speaker 1: investing locally. It's easy to keep an eye on things,

1195
00:50:56,239 --> 00:50:58,239
Speaker 1: but we've also been keeping it small time. And we've

1196
00:50:58,239 --> 00:51:00,480
Speaker 1: had this question from a lot of our listeners who

1197
00:51:00,520 --> 00:51:02,239
Speaker 1: live in l A, who live in Denver, who live

1198
00:51:02,280 --> 00:51:04,320
Speaker 1: in parts of the country where buying a home is

1199
00:51:04,360 --> 00:51:07,680
Speaker 1: prohibitively expensive and so real estate investing just feels completely

1200
00:51:07,680 --> 00:51:09,600
Speaker 1: out of reach, and I think for them, long distance

1201
00:51:09,640 --> 00:51:11,799
Speaker 1: real estate investing can make a lot of sense. It

1202
00:51:11,880 --> 00:51:13,960
Speaker 1: takes becoming a rock star like David said, and then

1203
00:51:14,000 --> 00:51:17,239
Speaker 1: finding rock star players in the market where you're looking

1204
00:51:17,280 --> 00:51:19,640
Speaker 1: to buy. And so while it scares me a little bit, right,

1205
00:51:19,640 --> 00:51:21,560
Speaker 1: it's not something I've ever done, I feel like it's

1206
00:51:21,600 --> 00:51:23,880
Speaker 1: something that is now in play in my mind that

1207
00:51:23,920 --> 00:51:27,320
Speaker 1: I could actually maybe buy a property in another state

1208
00:51:27,520 --> 00:51:29,440
Speaker 1: from where I live. And so, yeah, I just appreciate

1209
00:51:29,560 --> 00:51:31,880
Speaker 1: his philosophy as thoughts on that because obviously he's not

1210
00:51:31,880 --> 00:51:33,920
Speaker 1: gonna be buying ten homes a year in San Francisco.

1211
00:51:34,080 --> 00:51:36,759
Speaker 1: Almost nobody can do that, right, It's so expensive there. Yeah,

1212
00:51:36,760 --> 00:51:38,719
Speaker 1: so that was my big takeaway. Long distance real estate

1213
00:51:38,760 --> 00:51:41,759
Speaker 1: investing can work. You gotta consider that. Man. Sweet, all right, man,

1214
00:51:41,840 --> 00:51:43,080
Speaker 1: let's get back to the beer that we had on

1215
00:51:43,120 --> 00:51:45,640
Speaker 1: the show today. We had a beer called The Explorer

1216
00:51:45,719 --> 00:51:48,400
Speaker 1: by Archetype Brewing. It was a tropical I p A,

1217
00:51:48,440 --> 00:51:51,520
Speaker 1: what were your thoughts, man, tropical? Indeed? Uh, I feel

1218
00:51:51,520 --> 00:51:54,440
Speaker 1: like there was virtually no hot bitterness. Like, it was

1219
00:51:54,480 --> 00:51:57,560
Speaker 1: super smooth, super sweet. Right, it almost drank like juice,

1220
00:51:58,120 --> 00:51:59,839
Speaker 1: which is kind of dangerous when it comes to a beer.

1221
00:52:00,200 --> 00:52:02,080
Speaker 1: But yeah, it was just super juicy. It was very

1222
00:52:02,080 --> 00:52:04,440
Speaker 1: wet and sweet. I guess the kind of beer that

1223
00:52:04,440 --> 00:52:07,359
Speaker 1: you would expect maybe in a tropical climate, but I

1224
00:52:07,480 --> 00:52:09,359
Speaker 1: really really dog this one. Man. We're gonna have another

1225
00:52:09,400 --> 00:52:11,960
Speaker 1: beer by Archetype later this week, but yeah, what were

1226
00:52:11,960 --> 00:52:14,799
Speaker 1: your thoughts on the Explorer. Well, it's a great name, right,

1227
00:52:15,360 --> 00:52:17,799
Speaker 1: makes me think of Jurassic Park, because that's when the

1228
00:52:17,880 --> 00:52:19,880
Speaker 1: Explorers came out, right, Like that was the that was

1229
00:52:19,880 --> 00:52:23,120
Speaker 1: the dawn of the suv Okay, see, I'm thinking like

1230
00:52:23,200 --> 00:52:27,439
Speaker 1: Vasco da Gama. I'm thinking like Christopher Explorer. Yeah, someone

1231
00:52:27,440 --> 00:52:30,719
Speaker 1: who like discovered a country or something via boat. But now,

1232
00:52:30,760 --> 00:52:32,960
Speaker 1: this was a great beer. It truly didn't have like

1233
00:52:33,000 --> 00:52:36,040
Speaker 1: tropical notes throughout, and it was also just incredibly bright

1234
00:52:36,239 --> 00:52:39,600
Speaker 1: and refreshing. You're right, these hops didn't have a ton

1235
00:52:39,600 --> 00:52:41,320
Speaker 1: of bitterness. It really was more of a bright and

1236
00:52:41,400 --> 00:52:43,839
Speaker 1: fresh vibe. And so yeah, I really enjoyed this beer,

1237
00:52:43,840 --> 00:52:45,759
Speaker 1: mad Man. I totally agree. Fresh. I felt like this

1238
00:52:45,840 --> 00:52:48,399
Speaker 1: was candor recently is drinking like a fresh hoop? Yeah,

1239
00:52:48,440 --> 00:52:50,160
Speaker 1: no doubt. All right, So we'll have another beer from

1240
00:52:50,239 --> 00:52:53,520
Speaker 1: Archetype on Wednesday's episode. Looking forward to that one. But

1241
00:52:53,600 --> 00:52:56,080
Speaker 1: that's gonna do it for this episode. So for anybody

1242
00:52:56,080 --> 00:52:58,359
Speaker 1: who wants show notes for this episode, links to some

1243
00:52:58,440 --> 00:53:01,160
Speaker 1: of David Green's books, his pot cast, all those other things.

1244
00:53:01,360 --> 00:53:03,399
Speaker 1: You can find that in our show notes on our

1245
00:53:03,440 --> 00:53:06,480
Speaker 1: website how to money dot com. And if you haven't already,

1246
00:53:06,480 --> 00:53:09,880
Speaker 1: we would love if you were a subscriber to this podcast.

1247
00:53:10,200 --> 00:53:11,960
Speaker 1: Just hit that subscribe button, and while you're there, if

1248
00:53:11,960 --> 00:53:14,200
Speaker 1: you could rate and review us, we would really appreciate

1249
00:53:14,280 --> 00:53:16,960
Speaker 1: that as well. So Joel, that's gonna be it man.

1250
00:53:17,040 --> 00:53:20,000
Speaker 1: Until next time, Best friends, Friends Out,