September 6, 2023 • 32 mins
Will Roundtree Talks Unpopular Concepts & Understanding Economics + More
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Speaker 1 (00:03):
It's way up with the Angela.
Speaker 2 (00:04):
Yee, it's a wealth Wednesday, and I got Will Roundtree
here with me full time CEO. Yes, yes, yes, and
I'm excited to talk about One of my favorite things to.
Speaker 1 (00:13):
Discuss is real estate.
Speaker 2 (00:15):
Absolutely all right, So let's talk about where your whole
background comes from, because that's always important to our listeners.
Speaker 1 (00:20):
You know what makes somebody an expert in real estate?
Speaker 3 (00:23):
So honestly, don't even like using a word expert, guru
or none of that. I think it's really all about experience, right.
And so I'm originally from Milwaukee, Wisconsin, and I was
sold just like everybody else, Angela like go to school,
get the good grades, get the good job. But in
this generation, that don't work anymore, you know what I'm saying.
And so I wanted to find something that would put
me on a path of really creating something. And it
(00:45):
takes me back to a story back in two thousand
and three, my grandfather actually tried to give me forty
five houses. What grandfather was, He had a fifth grade education,
but he owned forty five houses in three car washes.
Speaker 1 (00:58):
That's amazing.
Speaker 3 (01:00):
I turned them down because the houses were in the hood.
They were quote unquote raggedy, and I didn't know the
value of real estate then and as I look back,
that portfolio would have been worth over five million dollars today.
Speaker 1 (01:11):
What did he do with the houses?
Speaker 3 (01:13):
Well, he liquidated everything.
Speaker 1 (01:15):
I can't give it to you or I can just
sell it.
Speaker 3 (01:17):
Right, And so going through that journey and not knowing,
you know what that value of that was, I went
just like everybody else. Work Eventually got into entrepreneurship in
two thousand and three, ended up moving to Las Vegas
in two thousand and five. But when I got to Vegas,
I found out why life was difficult. I had bad credit, you.
Speaker 1 (01:36):
Know, in there.
Speaker 2 (01:37):
And even before you get into that, I want to
flash back to what your grandfather did, because you know
it might not have gone well back then if you
didn't understand I know it would the value and kept
it up because I'll say this, like the first house
I ever bought, I had an opportunity to buy a
house in Brooklyn. You know, my friend had a family
member who passed and they gave the property to them
(01:57):
and they just wanted to sell everything off, and so
they were going to give it to me at such
a it was I think six hundred and ninety nine
thousand dollars, which in Brooklyn was amazing, a huge house
with a garage to drive away everything, and at that
time it was my first house, and I was like,
I don't know, you know what to do with this.
This isn't what I necessarily wanted. Like if I would
have had that opportunity later, it would have been great,
(02:17):
But I don't think that I would have been able
to do what I needed to do because I was
so new at it correct And so I think sometimes
timing is important too, because sometimes we kick ourselves for
not knowing at the time that we had an opportunity
what to do, but not knowing what to do could
have made things even worse.
Speaker 3 (02:33):
Well, not only timing, I think it's a mindset too.
I wasn't prepared.
Speaker 2 (02:37):
Yeah, so, and that's why I say timing, because I
just wasn't in that space.
Speaker 3 (02:41):
But I tell people I'm actually thankful that happened because
now it forced me to learn what not to do.
And I think that's the difference. When people sayding that're
scared of failure, I'm like, how can you be scared
to fail at something you're already failing at so right
then was not even tried, not even try.
Speaker 1 (02:59):
Okay, so go ahead, moved.
Speaker 3 (03:00):
So I moved to Las Vegas. Found out that having
bad credit is expensive, you know, couldn't rent an apartment
without putting in two times a deposit down, couldn't buy
a vehicle without needing a co signer.
Speaker 1 (03:10):
Definitely can't buy a house with that.
Speaker 3 (03:12):
Especially now. And so I remember having a mentor who said,
will eventually credit will become the new dollar. So once
I started to figure out that I need to fix
my credit, took me two years. I owed everybody, including dogs,
like I owed everybody some money, and so got my
credit fixed, and then I was able to buy a
vehicle with no money down. It blew my mind. I
(03:33):
was able to purchase my first home in twenty thirteen,
and coming from Milwaukee, Wisconsin, owning a home of something
I never even imagined. And so then I started to
learn that ninety percent of successful, wealthy and affluent individuals
on real estate. So I said, I have to figure
out how to buy real estate. But I didn't have
a lot of money until I read the book Rich Dad,
Poor Dad and Robert Kyosaki, where he talked about using
(03:56):
opm other people's money. And so essentially what he does
is he goes to the bank and leverages the bank's
money to invest in real estate because the bank isn't
running out of money, well at least we hope not.
Speaker 1 (04:07):
And they want you.
Speaker 3 (04:08):
They want you to because that's the only way they
make money is by you leveraging it.
Speaker 2 (04:11):
And I want to say, just to everything that you
just said, there are some people who feel like I'm
not buying something if I don't have the cash to
buy it.
Speaker 3 (04:17):
Well, that's the wrong mentality to have, you know, because
here's the thing. If I have one hundred thousand dollars,
why would I go tie up one hundred thousand in
cash when I can use somebody else's money and make
money off of it. I tell people, you want to
use your cash for in case emergency breake glass. But
if I can go to the bank and get a
line and credit for one hundred thousand, it may cost me,
let's say, seven hundred to fifteen hundred dollars, depending on
(04:41):
the interest rate. I just go find a vehicle, i e.
A property, or buy a business that's going to pay
me at least two thousand dollars a month. So now
I'm servicing the debt on the debt and it's making
me money and it costs me nothing out of my pocket.
Speaker 1 (04:53):
Do you think all right?
Speaker 2 (04:54):
Now, I want to ask you this question because there's
a lot of different people who have different views on money,
on credit, right, what is something that you've done that
is not a popular.
Speaker 1 (05:05):
Like a popular concept.
Speaker 3 (05:09):
Yeah, I use credit cards. A lot of people, especially
in our community, they're scared of debt, but that's because
we don't overstand that there's different there's different debt structures.
Most of us are accustomed to what is called unstructured debt.
This is when we buy a house we can't afford,
we buy a car we can't afford. Most people are
not familiar with what it's called restructured debt. It's bankruptcy.
(05:31):
But we've been looked at we've looked at bankruptcy in
the negative, in a negative way.
Speaker 2 (05:35):
But some of the richest people in the world are
always filing for bankrupts because they're protecting.
Speaker 3 (05:39):
They're protecting their assets, and it's restructuring. But the thing
that I use that is unpopular, well, it's starting to
become a little more popular. It's called structured debt. This
is where I take debt from the bank, go buy
debt which is a property, and let the rent from
the property service all of the debt and still make
sure I have a return every month, you know. And
so I use my debt, I use credit to go
(06:01):
buy businesses, you know. And so these are the strategies
and concepts that we haven't been taught because we haven't
been taught about economics. It's bigger than money. It's a
difference between economics and money. And that's what I try
to teach people.
Speaker 2 (06:13):
Because I think about things that people tell me I
shouldn't do. Like, for instance, I remember I don't know
if it was like Susie Orman, I can't remember who
it was, but they were talking about real estate. That's
not great to invest in, right, that's a bad idea.
And I think one of the things was condos.
Speaker 1 (06:29):
That have an hoa feed. Right.
Speaker 2 (06:31):
But I feel like because I do have one of those,
but I feel like it's been my easiest investment.
Speaker 3 (06:37):
Well, I say, you always just look at the numbers. See,
I don't make deals emotionally. I don't care if it's
about the water or if it's near, you know, in
a C class neighborhood. As long as it can cash flow,
that's what I focus on. So believe it or not,
the ninety percent of my real estate portfolio, I couldn't
even tell you what the house looks like.
Speaker 1 (06:59):
See that's hard.
Speaker 3 (07:00):
Now.
Speaker 2 (07:00):
That's something that I always feel like if I'm buying.
But I also don't have a huge Like the stuff
that I do is not high volume, right, you know,
like I have like a luxury property upstate New York.
I have a condo in Williamsburg on the waterfront. So
I like to do things that are more like a
luxury property that I know it'll be, you know, just
(07:22):
one because it's not what I do full time either,
and I do, you know, most recently, like we said,
I bought that building in Detroit. That's my biggest investment
to date as far as the thirty units.
Speaker 1 (07:33):
Hear me too.
Speaker 3 (07:34):
I sent you a d on two by the way
to congratulation. I didn't get a reply.
Speaker 2 (07:38):
You know what, It's probably because we got to. I
got to make sure I follow you so I can
see your dms when I get them. But I appreciate
that because a lot of people had I didn't even
Sometimes it's hard for me to talk about things that
I'm doing because there's a lot of negativity from people like, oh,
you're just like they'll be like, oh, you're just doing
that for this reason, or you're doing that for that.
Speaker 3 (07:56):
That's because they don't know any better. You know, a
lot of people ask me, well, why do you buy
properties in the hood, And I'm saying, do you know,
that's where the money is at. That's why it's called
gentrification going on right now. Do you look at any
major city that their neighborhoods or the hood is near
the downtown, that's where the money is pumping at.
Speaker 2 (08:13):
That's true, and you know, I see that especially in Brooklyn.
We saw that in Harlem. And one thing I will say,
people talk about gentrification, but it's been great for people
who own and so if you were able to buy
something when you had the opportunity or your family was
able to do that and be able to pass that
down to you in a place a neighborhood that was affordable,
and then it gets gentrified, that is great for somebody
(08:34):
who was able to do that. It's unfortunate if you
don't own something and now it's really difficult to rent
and you're getting pushed out of certain areas.
Speaker 1 (08:41):
And you know that's hard because a lot of families.
Speaker 2 (08:43):
I don't think I was raised with the mindset of
let's invest in real estate. My grandfather he used to
always say, save your money, buy a house. He just
used to say that like that was it no direction
or anything more than that, right, And I watched him
build his house from scratch in the West Indies when
he retired, the house that we grew up into my
mom when he moved and retired, right. And so that's
(09:04):
how we even you know, my parents even owned a home, correct.
Speaker 3 (09:07):
Yeah, No, I agree. And I think the thing is
because we don't know enough about enough. We don't we're
not taught ownership. Matter of fact, in a black and
brown community, especially the black community, homeownership has went from
its high as forty seven percent to about forty one
percent now. So it's actually decreasing in our community. But
that's because we look at home ownership is this like
(09:28):
unattainable obstacle, not knowing it's actually easier to get approved
for a home than a credit card, is it. Yeah,
because for a house, you can get approved at a
five eighty a credit card. You need a six eighty
to a seven hundred, but.
Speaker 1 (09:39):
Your interest will be really high.
Speaker 3 (09:40):
The interests are relevant, especially as an investor.
Speaker 2 (09:44):
Well, okay, as an investor, yes, yeah. What was your
first property that you purchased?
Speaker 3 (09:48):
Personal or investment?
Speaker 1 (09:50):
Personal?
Speaker 3 (09:50):
My first property I bought. It was for two hundred
and fifty thousand in Las Vegas.
Speaker 1 (09:55):
Yes, okay. And then investment. What was your first property?
Speaker 3 (09:57):
It was a property in Cleveland, Ohio and in East Cleveland.
I pay twenty five thousand for it on a credit card.
Speaker 1 (10:04):
That's amazing.
Speaker 3 (10:05):
Definitely. I can show you how I did it too, Yeah,
tell me definitely. So essentially, it's a strategy. So if
I have credit, okay, all I have to do is
calculate how much the credit is gonna cost me. It's
all numbers, so I know if the property is gonna
cost me. It's no different than if I have a mortgage.
So if I pull twenty five thousand from a line
of credit and it's gonna cost me, let's say six
(10:26):
hundred bucks, the property was already cash flowing. See, I
only buy turnkey properties. I don't buy properties. I have
to go in and rehab because there's too much that
can take place that I can't control.
Speaker 1 (10:38):
Trust me, I know I'm dealing with.
Speaker 3 (10:39):
It happened to me, But I'm glad I went through
that because it was the mistake I needed that took
me on a path to doing only turnkey. So the
property was turnkey and already nine hundred and seventy five
dollars a month. This was in twenty eighteen, and so
the rent is going to cover the debt. And now
not only do I have an asset that I can
hold in and make money off of forever, but then
(11:02):
if I wanted to get liquid, all I do I
don't sell my property. Gee, I do what's called a
cash out refinance. This way, I can borrow up to
eighty percent of the value of the home completely tax free.
Speaker 1 (11:14):
Is that like an equity line of credit or a.
Speaker 3 (11:16):
Home equity line of credit is something it's like taking
a second on your house or a line of credit
on your property, which typically you can only do that
on your primary residency. On an investment property, you do
a refinance where you're pulling money out against the equity
of the property. But the whole concept of why I
want to share that in what I want the listeners
(11:37):
to know why that's so powerful. This is why wealthy
people don't save money in the banks. They tuck them
into assets, and then when they want to get liquid,
they refinance the property because it's tax free.
Speaker 2 (11:47):
I was telling one of my friends that the other day,
if you have too much money in the bank, then
there's an issue.
Speaker 1 (11:51):
You're losing money, yeah, because that money's not working for you.
Speaker 2 (11:54):
That it's just that you'll get on money that's sitting
in the bank is nothing compared to what you can
get if you make an investment.
Speaker 1 (12:00):
But some people are also scared, right that it might be.
Speaker 2 (12:03):
A bad investment, or how do I know how to
even get started?
Speaker 1 (12:06):
Who do I even trust?
Speaker 3 (12:07):
So here's the thing I tell people, let's take the
emotions out in the whole trust factor. You just have
to know fifth grade math, you know. So if I
know if I have one hundred thousand dollars, okay, and
I go and buy a property, I find a property
that's just going to cash flow. And unless your property
is in an unlivable condition, somebody is always going to
(12:30):
want to rent it because we all have to live somewhere.
Let's just be honest. But here's why people get in
trouble in real estate Angela. They overbuy. They buy the
property that they want to live in, so it makes
it unattainable from a cash flowing standpoint because the rents
won't service the debt, or they put family members in
or they don't run it like a business. See, I
run my real estate portfolio like a business.
Speaker 1 (12:52):
I'm definitely more emotional when it comes to you.
Speaker 3 (12:54):
We got to help you remove that.
Speaker 1 (12:56):
No, I'm not gonna lie.
Speaker 2 (12:58):
And I've learned, like I've had issues with tenants.
Speaker 3 (13:01):
And placing attenance though so.
Speaker 2 (13:04):
Only in one scenario, and I will not do that again.
Speaker 3 (13:08):
We got to get your property management team.
Speaker 2 (13:10):
Yeah, I actually have one now, so I'm in the
process of trying to remedy that situation. But it was
a learning lesson, like you said, for me, for me
trying to help somebody and being really nice about even
the amount of money that they pay, and then you know,
some people will never it's never enough ever.
Speaker 3 (13:27):
Yeah, and Christmas and come on, yee, I gotta buy
presents and then they don't want to pay rent. So
I just remove that emotion. My tenants don't even know
I'm the owner because all of my properties under an LLC.
Speaker 2 (13:38):
So yeah, and I do have LLCs for all of
my and that's another thing that I learned to do.
But you know, even for me doing like my first
ever airbnb Upstate, it's a beautiful property, but it's a
lot of things that I didn't take into account when
I actually purchased it. You know. Fortunately, it is paying
for itself, you know, in that space, So I'm grateful
for that. But if I had to do things now,
(14:00):
I know, you know, so it hasn't been awful, but
it also I'm like, Okay, I messed up here. I
messed up with this, and the next one that I
do is going to be a little different.
Speaker 3 (14:09):
So I think you kind of answered your question was
how do you protect the bad investment? It's paying for itself,
So we have to overstand that sometimes breaking even is
a win.
Speaker 1 (14:17):
Yeah, it is a win because we lose.
Speaker 3 (14:19):
So often with a lot of investments. But at the
end of the day, and always say, when you buy
real estate the right way, because you make your money
at the purchase. If you buy it the right way,
if things hit the fan, you could sell that property
and at least break even.
Speaker 2 (14:32):
Yeah, and if I sold that property, I wouldn't make
money because it's worth more than when I bought it
a couple of years ago already.
Speaker 1 (14:38):
So you were in a win win situation.
Speaker 3 (14:40):
So I got a place to stay when I need
to go there, right.
Speaker 1 (14:42):
Yes you did.
Speaker 3 (14:42):
Okay, y'all heard that. Yah, y'all heard that.
Speaker 2 (14:45):
But the business side of me is like, well talk
to the real to no kidding. And I do always
try to hook up my friends, like if one of
my friends hits me up, because I think part of
me even having that is a space where I can
go to where I can also let my friends, you know,
be able to to use it as well, absolutely, which
is not very business definitely.
Speaker 3 (15:04):
That's why you get a manager. Let them be the liaison.
Speaker 2 (15:07):
Now let's talk about some of the quote unquote failures
too and what you learn from that.
Speaker 3 (15:12):
Man. So on the real estate side, I think the
biggest one is the emotional part. You know, I don't
buy stuff because it's pretty. I buy stuff because it's profitable.
I'd be like, this is amazing, see, And that's where
people get messed up at you. And so people get
jammed up. And again that's why I don't necessarily go
look at the properties. So here's what I normally do.
My realator will send me a deal and we'll run
(15:33):
the numbers. I'm like, okay, bet the numbers make sense.
Here's the potential rents or a lot of my properties
already have tenants in there, so I'll send my home
inspector over there. As long as the home inspector make
sure that the four main points that I look for
to qualify. I'm looking at roofing, I'm looking at the foundation, heating, plumbing,
(15:54):
and electrical. As long as those things check out and
everything else is good, and as long as I know
it can cash flow and it can service the debt,
that I'm fine with that. Outside of that, those are
typically the biggest mistakes people make. Is they either buy
with emotion, or they buy and they're trying to do
everything themselves, or they are, you know, utilizing all of
(16:16):
their money. The biggest one is one of your highing contractors.
I tell people, if you're a new investor and you're
trying to do real estate flipping and you're calling contractors,
they usually see the worst sucker on your forebee because
they're gonna over They're gonna underbid you, They're gonna bust
open the walls, and then now they're gonna say, okay,
we got a ten thousand dollars plumbing issue. So there's
(16:36):
just too many things that can go wrong. And I
believe in what's called velocity of money, how fast I
can put it out there and how fast I can
get it back, so I mitigate, you know, all of
the errors that can go wrong by either doing turnkey
or buying things that I don't have to go in
and do a bunch of rehab at because it puts
me in a position to make my money back immediately.
Speaker 1 (16:57):
Are you more of a hold and sell type a
person or I hold?
Speaker 3 (17:01):
I don't flip real estate because when you think about wealth,
people think making money or making a lot of money
is being wealthy. But when you look up the definition
and the layman's terms of wealth is an accumulation of assets.
If I sell all of Big Mama's houses, or in
my case, when I got rid of all of my
grandfather's houses, nothing in our family is going to pay
(17:21):
us for the rest of our lives. So I have
to hold my real estate. And this is why I'm
so passionate This is why I've been traveling the country
for the past seven years on my own dime, going
out doing free workshops, doing pop up events, and why
I'm writing books and doing all of these things because
nobody's really teaching us these concepts. These are all concepts
that were not being taught now.
Speaker 1 (17:42):
Some people also feel like, well, does credit matter if
I have cash?
Speaker 3 (17:45):
Absolutelyity, okay, because why would I use all my Why
would I use all my cash when I can go
and play with the bank's money.
Speaker 2 (17:50):
Because I always hear people say that, well, if I
have cash and credit doesn't really matter, it's no big deal.
Speaker 1 (17:55):
And I don't know where that line of thinking came from.
Speaker 3 (17:57):
So this is what I tell people. All Right, let's
say you I have one hundred thousand dollars cash and
I have one hundred thousand dollars worth of credit. Once
your one hundred thousand dollars of cash runs out, how
much do you have left?
Speaker 1 (18:08):
Zero?
Speaker 3 (18:09):
But guess what, I can go to another bank and
get another one hundred thousand, so I'll always have access
to capital.
Speaker 2 (18:14):
How are you when it comes to paying off properties?
What are your thoughts on that great question?
Speaker 3 (18:18):
Because I know you paid off your house, not to.
Speaker 2 (18:20):
Say I paid off well, No, listen, I've paid off
the first house I ever bought, plus the condo and Williamsburg,
plus I bought you know, everything cash except for the
building in Detroit. So the house I have there is
paid for because it was twenty five thousand dollars.
Speaker 3 (18:35):
No. Absolutely, Yeah. So here's my concept about that. When
we hear the term debt free, most people, I think,
think you should not owe anybody but debt free. It
should be consumer debt, wasteful credit card spending, debt, et cetera,
et cetera. When it comes to paying off of property,
it depends on your scenario. For me personally, that's not
(18:56):
necessarily a goal of mine, because I'm gonna always leverage
the debt. So, for example, if I have a string
of properties, and let's say I eventually pay them off,
I'm gonna now do what's called a portfolio loan, which
means I'm gonna go and get a loan against all
five properties and then go and use that money to
go buy another bigger property, whether it's a multifamily, whether
(19:17):
it's a commercial building, which I bought an old historical
bank in Milwaukee. So so I'm always gonna leverage the
debt to go make me more money because the goal
is every single dollar or every single credit dollar, my
goal is to get at least a two point five
x return on that. And I look at every dollar
as an employee. So you deploy money, you deploy capital.
(19:39):
You don't hold it and save it and put it
in the bank.
Speaker 2 (19:42):
Right now, I know that's something, but you know what,
I still feel like relief. I do have mortgages still,
but there's those things that I've paid off, so I
feel stable with those, and then I had the other things.
It makes me not nervous because I always know I
have these assets that if necessary, I can just be like,
all right.
Speaker 1 (19:59):
Well we'll just you know, sell that.
Speaker 3 (20:01):
If you don't sell them against them, you borrow because see,
when you sell it, guess what you gotta do?
Speaker 2 (20:07):
Pay taxes, taxes unless you do a ten thirty one exchange,
and then you can guess something.
Speaker 3 (20:12):
But why not just borrow against it and don't pay
any tax right now you're gonna get the same amount.
Speaker 2 (20:17):
Now, let's talk about what you have going on though
with your coaching program.
Speaker 3 (20:21):
Yeah, so myri I ninety program, which stands for real
estate investing, where I target three different you know, prototypes,
the newbies, people who I call like lifelong strugglers, people
who are who have been trying to double dutch their
way into real estate but can't seem to get a grip,
and in the future planners. And so essentially I have
a step by step process of concepts that teach people
(20:41):
how to buy real estate, but how to build a
real estate team. And I've purchased all my properties literally
from my iPhone ye meaning like it's really just it's
all numbers, and I try to teach people how to
remove the emotions. I actually have a webinar coming up
August thirtieth, where it's a free webinar online. I'm gonna
be teaching people these concepts. I'm gonna be primarily focusing
(21:03):
on speaking to the newbies, show them not only how
to find real estate deals, what constitutes a good deal.
I'm even show them how to get the money from
the banks to do the real estate so you can
have zero dollars, and I'm gonna show you how to
get through the properties. And then September thirtieth, I'm actually
doing the in person event in Milwaukee Wisconsin where we're
actually gonna rent buses and take them into the communities.
(21:24):
I'm gonna show them how to evaluate deals. I'm gonna
have my contractor there. I'm gonna have my property manager there,
my lender, my banker, I mean, I have a banker
who lends for properties what is called a DSCR loan,
which stands for Debt service coverage ratio loan. Essentially, they'll
finance any deal as long as it has a one
(21:44):
to one ratio. So if the mortgage is a thousand,
as long as the rent is at least a thousand
or more, they'll finance the deal. They'll put it under
your business name, so that debt is not on your
personal debt, and it also protects you from getting into
bad deals because now you can't go get a deal
that's worth this and the rent it's here, so you
can't starve. Finance absolutely, so we even have different things
(22:07):
that I teach people how to put things in place
to protect themselves so they don't get jammed up.
Speaker 1 (22:12):
How about instinct?
Speaker 2 (22:13):
What part does instinct play when it comes to purchasing
or investing in real estate or do you feel like
it's only I got to talk to my you know,
my accountant.
Speaker 1 (22:22):
I have to do this, I have to do that.
Speaker 2 (22:23):
Or sometimes are you like, my gut is telling me
don't do this, or my gut is telling me to
go for it.
Speaker 3 (22:29):
So I'm one that believes that you should always follow
your instinct, whether it's in relationships, whether it's in money
or whatever. But I can remove all of that by
just looking at the numbers. So I often say you
can be successful in real estate and business because it's
all fifth grade math.
Speaker 2 (22:46):
Sometimes we can't predict, like I think even in Harlem
when people had opportunities to invest there but people didn't
have the vision to see what it could be. Or
even in Brooklyn as neighborhoods are changing, or in Detroit
some people.
Speaker 3 (22:57):
That I can tell you why that's the case, because
people are trying to get rich off of one deal. Okay,
when people chase equity, which means, hey, let me buy
high and hope that it goes to this, that's the
wrong type of mentality to have. If the goal is, hey,
let me just build Like the game of Monopoly, when
you go across board walk, you're not going based off
(23:17):
of instinct. If somebody's gonna land on there and make money.
You're gonna buy the board walk because if somebody lands
on the board walk on Monopoly, what happens. I gotta
pay you. And so that's no different than how real
estate works. As long as it's making money, I'm gonna
buy it. Because when we think about business as a whole,
I don't go and start a business because of the instinct. Oh,
I think my burgers are gonna do well. I'm going
(23:39):
in knowing, Hey, I make great burgers. I have a
great product. Here's my numbers. It makes sense. I'm gonna
sell it. So once you remove the emotion and do
it strictly off the numbers, I don't go and get
my accountant's permission. I just make sure that, you know,
they make sure my books are good, you know, so
I can remove all of that stigma and the emotion.
Speaker 2 (23:58):
How do you make sure that when people are vetting
out that they can understand. Look, these are the people
that have successfully you know, went through my program. These
are people that I've coached, They've seen success. Where can
people find that information?
Speaker 3 (24:08):
Yeah? I mean one of the things that I believe
is that bad news travels faster than good news. And
if you're out there jamming people up and putting them
in bad situations, it'll be out there, you know. I
tell people just follow my journey, follow my progress. My
results speak for themselves. See. My thing is is I'm
never trying to convince somebody to do business with me.
(24:30):
My thing is is, let me show you the results
come or don't come or don't. But then, more importantly,
I'm not asking you for your money. See, this is
why I think people get jammed up. Let's say you're
doing a.
Speaker 1 (24:40):
Project and they come invest with me.
Speaker 3 (24:42):
Yeah, you're like, hey, park your money with me. I'm
angela yee and this, and as great as you are,
you know, but you like you say, that's not what
you do full time. And so then we're in trusting
that my money gets flipped with you. But then you're
giving me some unbelievable terms like hey, I'm gonna flip
it to fifty percent in nine days. That's not practical.
You can't even do that in the streets, you know.
(25:05):
And so that's where that instinct and common sense that
I believe has to come into, where I'm saying, look,
ye I don't want your money. I'm going to show
you how to use your own money, your own ingenuity.
I'm gonna give you the concepts and you dictate your
own return client in real life you apply it. I'll
give you all of the tools. I'll even give you
my resources. But I don't want I'm not taking your money.
(25:27):
I can go to the bank and get as much
money as I want, So.
Speaker 2 (25:30):
I don't even want the responsibility of anybody at all.
But everything that I've done, I've had the latest project,
I had like a couple of my friends invest with me,
and we did it together, and they were able to
go through the whole process with me, you know, and
either do it or don't know my feelings, but you know, they're.
Speaker 1 (25:46):
Really happy they did it. I'm going to say that.
Speaker 2 (25:48):
But I also wanted to be able to walk through
doing something like a thirty unit building that I've never
done before, so that when people ask me about it,
I want to feel more educated on telling them what
to do, rather than me just well, this is what
you're supposed to do, right, some more like this is
what I did.
Speaker 3 (26:02):
And another thing too, even with that e is that
sometimes people don't do their own due diligence. Sometimes we
have to take the drug called accountability.
Speaker 1 (26:09):
Ourselves, Like what made me think? Right?
Speaker 3 (26:12):
Not only that, Like if you bring me a deal
and I'm like, okay, what LLC is this going under?
And you're like, no, this is going under my ned, Like,
I'm not doing that deal. I need to see paperwork,
lawyers need to be involved. The money is going to scrow.
I'm not sending it to your bank account. So we
got us. And that's the thing that I tell people,
and I wrote this in my book Full Time CEO.
We have to learn about business, yes, but we're not
(26:35):
learning the just the basics about business. If you tell
me it's under your name, I'm not doing that deal.
Speaker 1 (26:42):
But you know what, let's end it with that. Let's
talk about with Will Roundchie.
Speaker 2 (26:45):
Just give people some tips if you're doing something that
you should watch out for, and so that when people
are doing things, if they are planning to invest whatever
it is that they're doing, what are some things that
you are saying you should look out for, because like
you said, don't send the money to a per and
what is the LLC?
Speaker 1 (27:01):
Like, what are some things that you should look out for?
Speaker 3 (27:02):
How much time we got because I could go for
three days I want to hear this, so I mean
bottom line, absolutely bottom line. First of all, let's start
with our instinct. Let's do our own due diligence. Now,
if somebody's want to do business with me or I'm
looking to do business, first thing I'm gonna do is
I'm gonna check out to see if they have a
credible business. You'd be surprised how many people are doing
(27:23):
these projects and you go to the secretary of state
and their business is not active. So literally find out
what that person business entity is or what entity that
project is going to be tied to, and you can
go to that state's Secretary of State and look it
up for free to even see if it's active or not.
Then you want to find out who are all of
the managing members on there. If it's an LLC, they'll
(27:47):
be managing members. If it's an incorporation, it'll be a
directors and presidents and all of that. And if it's
an es corp, it's probably still tied to either an
LLC or an incorporation. Next is how are you saying
the money? If you're doing it through an escrow account,
which typically is a you know, an account that an
(28:07):
attorney or a title company where they hold.
Speaker 2 (28:09):
The money can't with anything else.
Speaker 3 (28:13):
Then that means that at least your money is protected.
If someone said, hey, send me a cash shap or
wire the money to my bank account, I won't even
do business with people a cash app. But I got
beat up on Facebook for saying that. But if somebody
told me to send them a cash shop, I'm not
doing it. Okay, okay. If they tell me to wire
(28:34):
it to their personal or even business bank account, I'm
not doing it. So you want to watch out for
those signs more, and then secondly, find out what type
of project is involved. Who are all of the players
that's involved with the project. When it comes to real estate,
I don't care if my mam is selling me a house.
Sorry mama, I know you might be watching, but I'm
using a title company. I've actually had clients and mentees
(28:57):
who went and bought real estate from other people. They
wired the money to somebody's bank account or quote unquote
the seller, and then that seller took the money and
sold the property again.
Speaker 1 (29:07):
Because they didn't have the title.
Speaker 3 (29:08):
You don't have the title, So I'm only doing things
making sure that my money is going through an escrow
account or a title company, and I'm use an attorney.
See a thing a lot of people don't realize is
that when you are doing a real estate transaction, the
attorney doesn't necessarily charge you a bunch of money to
review the contract. They don't charge. They're gonna be there
(29:29):
to protect you. And so it may cost you five
hundred dollars to use that attorney, but put it on
a credit card. So we have to stop cutting corners
because I say often that cutting corners or taking shortcuts
is expensive.
Speaker 1 (29:44):
Yes, you're absolutely, it's expensive inside yourself.
Speaker 3 (29:46):
You gotta do it right or pay twice.
Speaker 2 (29:48):
And if you don't have the money to pay for
an attorney or to pay.
Speaker 3 (29:51):
Probably can't.
Speaker 1 (29:52):
Yeah, it's not the time to do it.
Speaker 3 (29:53):
It's not the time to do.
Speaker 2 (29:54):
Because I think people also want to rush into doing
real estate and sometimes financially it may not be.
Speaker 1 (29:59):
But you said you can do it for zero dollars.
Speaker 3 (30:01):
Well, when I say zero dollars meaning because let me
clear that up, I'm be on the blogs. Let me
clear this up. When I say zero dollars, gee, I'm
saying I don't necessarily have to use my money. I
can go to the bank credit. Got to have good credit,
get a line of credit, and then I'm going to
use the bank's money to do the deal. So can
(30:22):
we put the close captions under there to Okay? So yeah,
so I just try to keep it simple. I love
to have fun at what I'm doing, but yeah, use
your intuition. Hire be a professional at hiring professionals. Like
if I know that I don't know how to read
contracts because I don't read legal LEAs, I'm going to
hire an attorney. It may cost me to three hundred dollars. Look,
(30:45):
just don't go turn up that weekend and.
Speaker 2 (30:48):
An attorney to look at a contract when it comes
to something like that, I don't even though I've done deal,
so I'm never going to try to do that.
Speaker 3 (30:54):
I don't even sign birthday cards Gie without my attorn
that it might be some fine print in there. I
don't know. I gotta be careful out there, all right.
Speaker 1 (31:05):
Well, will Roundchie, thank you so much. And how can
people find you?
Speaker 2 (31:07):
And how can they also sign up for the Real
Estate Investing ninety coaching program?
Speaker 3 (31:11):
Yeah, so they can follow me across all social media
platforms at mister will Rountree at mister will Roundtree, I'm
on YouTube, I'm on Facebook, Instagram, LinkedIn, et cetera, et cetera.
And they can actually go online to roundtreemasterclass dot com.
The webinar is free ninety nine, so it's for the
free sky, and so go on there. Like I say,
(31:33):
and again, I'm not here to convince people. That's not
my job. And my job is just to give people
enough information so they can make an educated decision for themselves.
Speaker 2 (31:41):
And those people who are intrigued enough and want to
do it, then do it. And also don't feel like
you can be lazy once you get in there, do
the coaching.
Speaker 1 (31:48):
You also have work to do as you do.
Speaker 3 (31:50):
Oh can I say something real quick to that. I
want people to know that you're not gonna get rich
overnight doing real estate. And I think that's where people
get messed up at you because they go in saying, hey,
let me flip this money real quick, let me leave
my job, and it doesn't work like that. I tell
people real estate should be a retirement plan and it's
not a.
Speaker 2 (32:06):
Stock market too. You're not going to get rich overnight, definitely.
You know, doing stocks is very rare that something hits
in that way that that was.
Speaker 3 (32:14):
A once in a million with games stopping everything.
Speaker 2 (32:17):
So but no, definitely, and it went bad for some people, right, okay,
all right, well.
Speaker 1 (32:22):
Thank you so much for joining us. I do really
appreciate it.
Speaker 2 (32:24):
You know, I love talking about real estate and I'm
trying to learn things myself. So today I feel like
I had some work to do.
Speaker 3 (32:30):
Well, since you're gonna follow me now, now you can
hit me up and say, hey, Will, what do I
do any situations?
Speaker 1 (32:37):
All right, well, thank you so much. It's a wealth Wednesday,
mister will Rowntree
It's way up with the Angela.
Speaker 2 (00:04):
Yee, it's a wealth Wednesday, and I got Will Roundtree
here with me full time CEO. Yes, yes, yes, and
I'm excited to talk about One of my favorite things to.
Speaker 1 (00:13):
Discuss is real estate.
Speaker 2 (00:15):
Absolutely all right, So let's talk about where your whole
background comes from, because that's always important to our listeners.
Speaker 1 (00:20):
You know what makes somebody an expert in real estate?
Speaker 3 (00:23):
So honestly, don't even like using a word expert, guru
or none of that. I think it's really all about experience, right.
And so I'm originally from Milwaukee, Wisconsin, and I was
sold just like everybody else, Angela like go to school,
get the good grades, get the good job. But in
this generation, that don't work anymore, you know what I'm saying.
And so I wanted to find something that would put
me on a path of really creating something. And it
(00:45):
takes me back to a story back in two thousand
and three, my grandfather actually tried to give me forty
five houses. What grandfather was, He had a fifth grade education,
but he owned forty five houses in three car washes.
Speaker 1 (00:58):
That's amazing.
Speaker 3 (01:00):
I turned them down because the houses were in the hood.
They were quote unquote raggedy, and I didn't know the
value of real estate then and as I look back,
that portfolio would have been worth over five million dollars today.
Speaker 1 (01:11):
What did he do with the houses?
Speaker 3 (01:13):
Well, he liquidated everything.
Speaker 1 (01:15):
I can't give it to you or I can just
sell it.
Speaker 3 (01:17):
Right, And so going through that journey and not knowing,
you know what that value of that was, I went
just like everybody else. Work Eventually got into entrepreneurship in
two thousand and three, ended up moving to Las Vegas
in two thousand and five. But when I got to Vegas,
I found out why life was difficult. I had bad credit, you.
Speaker 1 (01:36):
Know, in there.
Speaker 2 (01:37):
And even before you get into that, I want to
flash back to what your grandfather did, because you know
it might not have gone well back then if you
didn't understand I know it would the value and kept
it up because I'll say this, like the first house
I ever bought, I had an opportunity to buy a
house in Brooklyn. You know, my friend had a family
member who passed and they gave the property to them
(01:57):
and they just wanted to sell everything off, and so
they were going to give it to me at such
a it was I think six hundred and ninety nine
thousand dollars, which in Brooklyn was amazing, a huge house
with a garage to drive away everything, and at that
time it was my first house, and I was like,
I don't know, you know what to do with this.
This isn't what I necessarily wanted. Like if I would
have had that opportunity later, it would have been great,
(02:17):
But I don't think that I would have been able
to do what I needed to do because I was
so new at it correct And so I think sometimes
timing is important too, because sometimes we kick ourselves for
not knowing at the time that we had an opportunity
what to do, but not knowing what to do could
have made things even worse.
Speaker 3 (02:33):
Well, not only timing, I think it's a mindset too.
I wasn't prepared.
Speaker 2 (02:37):
Yeah, so, and that's why I say timing, because I
just wasn't in that space.
Speaker 3 (02:41):
But I tell people I'm actually thankful that happened because
now it forced me to learn what not to do.
And I think that's the difference. When people sayding that're
scared of failure, I'm like, how can you be scared
to fail at something you're already failing at so right
then was not even tried, not even try.
Speaker 1 (02:59):
Okay, so go ahead, moved.
Speaker 3 (03:00):
So I moved to Las Vegas. Found out that having
bad credit is expensive, you know, couldn't rent an apartment
without putting in two times a deposit down, couldn't buy
a vehicle without needing a co signer.
Speaker 1 (03:10):
Definitely can't buy a house with that.
Speaker 3 (03:12):
Especially now. And so I remember having a mentor who said,
will eventually credit will become the new dollar. So once
I started to figure out that I need to fix
my credit, took me two years. I owed everybody, including dogs,
like I owed everybody some money, and so got my
credit fixed, and then I was able to buy a
vehicle with no money down. It blew my mind. I
(03:33):
was able to purchase my first home in twenty thirteen,
and coming from Milwaukee, Wisconsin, owning a home of something
I never even imagined. And so then I started to
learn that ninety percent of successful, wealthy and affluent individuals
on real estate. So I said, I have to figure
out how to buy real estate. But I didn't have
a lot of money until I read the book Rich Dad,
Poor Dad and Robert Kyosaki, where he talked about using
(03:56):
opm other people's money. And so essentially what he does
is he goes to the bank and leverages the bank's
money to invest in real estate because the bank isn't
running out of money, well at least we hope not.
Speaker 1 (04:07):
And they want you.
Speaker 3 (04:08):
They want you to because that's the only way they
make money is by you leveraging it.
Speaker 2 (04:11):
And I want to say, just to everything that you
just said, there are some people who feel like I'm
not buying something if I don't have the cash to
buy it.
Speaker 3 (04:17):
Well, that's the wrong mentality to have, you know, because
here's the thing. If I have one hundred thousand dollars,
why would I go tie up one hundred thousand in
cash when I can use somebody else's money and make
money off of it. I tell people, you want to
use your cash for in case emergency breake glass. But
if I can go to the bank and get a
line and credit for one hundred thousand, it may cost me,
let's say, seven hundred to fifteen hundred dollars, depending on
(04:41):
the interest rate. I just go find a vehicle, i e.
A property, or buy a business that's going to pay
me at least two thousand dollars a month. So now
I'm servicing the debt on the debt and it's making
me money and it costs me nothing out of my pocket.
Speaker 1 (04:53):
Do you think all right?
Speaker 2 (04:54):
Now, I want to ask you this question because there's
a lot of different people who have different views on money,
on credit, right, what is something that you've done that
is not a popular.
Speaker 1 (05:05):
Like a popular concept.
Speaker 3 (05:09):
Yeah, I use credit cards. A lot of people, especially
in our community, they're scared of debt, but that's because
we don't overstand that there's different there's different debt structures.
Most of us are accustomed to what is called unstructured debt.
This is when we buy a house we can't afford,
we buy a car we can't afford. Most people are
not familiar with what it's called restructured debt. It's bankruptcy.
(05:31):
But we've been looked at we've looked at bankruptcy in
the negative, in a negative way.
Speaker 2 (05:35):
But some of the richest people in the world are
always filing for bankrupts because they're protecting.
Speaker 3 (05:39):
They're protecting their assets, and it's restructuring. But the thing
that I use that is unpopular, well, it's starting to
become a little more popular. It's called structured debt. This
is where I take debt from the bank, go buy
debt which is a property, and let the rent from
the property service all of the debt and still make
sure I have a return every month, you know. And
so I use my debt, I use credit to go
(06:01):
buy businesses, you know. And so these are the strategies
and concepts that we haven't been taught because we haven't
been taught about economics. It's bigger than money. It's a
difference between economics and money. And that's what I try
to teach people.
Speaker 2 (06:13):
Because I think about things that people tell me I
shouldn't do. Like, for instance, I remember I don't know
if it was like Susie Orman, I can't remember who
it was, but they were talking about real estate. That's
not great to invest in, right, that's a bad idea.
And I think one of the things was condos.
Speaker 1 (06:29):
That have an hoa feed. Right.
Speaker 2 (06:31):
But I feel like because I do have one of those,
but I feel like it's been my easiest investment.
Speaker 3 (06:37):
Well, I say, you always just look at the numbers. See,
I don't make deals emotionally. I don't care if it's
about the water or if it's near, you know, in
a C class neighborhood. As long as it can cash flow,
that's what I focus on. So believe it or not,
the ninety percent of my real estate portfolio, I couldn't
even tell you what the house looks like.
Speaker 1 (06:59):
See that's hard.
Speaker 3 (07:00):
Now.
Speaker 2 (07:00):
That's something that I always feel like if I'm buying.
But I also don't have a huge Like the stuff
that I do is not high volume, right, you know,
like I have like a luxury property upstate New York.
I have a condo in Williamsburg on the waterfront. So
I like to do things that are more like a
luxury property that I know it'll be, you know, just
(07:22):
one because it's not what I do full time either,
and I do, you know, most recently, like we said,
I bought that building in Detroit. That's my biggest investment
to date as far as the thirty units.
Speaker 1 (07:33):
Hear me too.
Speaker 3 (07:34):
I sent you a d on two by the way
to congratulation. I didn't get a reply.
Speaker 2 (07:38):
You know what, It's probably because we got to. I
got to make sure I follow you so I can
see your dms when I get them. But I appreciate
that because a lot of people had I didn't even
Sometimes it's hard for me to talk about things that
I'm doing because there's a lot of negativity from people like, oh,
you're just like they'll be like, oh, you're just doing
that for this reason, or you're doing that for that.
Speaker 3 (07:56):
That's because they don't know any better. You know, a
lot of people ask me, well, why do you buy
properties in the hood, And I'm saying, do you know,
that's where the money is at. That's why it's called
gentrification going on right now. Do you look at any
major city that their neighborhoods or the hood is near
the downtown, that's where the money is pumping at.
Speaker 2 (08:13):
That's true, and you know, I see that especially in Brooklyn.
We saw that in Harlem. And one thing I will say,
people talk about gentrification, but it's been great for people
who own and so if you were able to buy
something when you had the opportunity or your family was
able to do that and be able to pass that
down to you in a place a neighborhood that was affordable,
and then it gets gentrified, that is great for somebody
(08:34):
who was able to do that. It's unfortunate if you
don't own something and now it's really difficult to rent
and you're getting pushed out of certain areas.
Speaker 1 (08:41):
And you know that's hard because a lot of families.
Speaker 2 (08:43):
I don't think I was raised with the mindset of
let's invest in real estate. My grandfather he used to
always say, save your money, buy a house. He just
used to say that like that was it no direction
or anything more than that, right, And I watched him
build his house from scratch in the West Indies when
he retired, the house that we grew up into my
mom when he moved and retired, right. And so that's
(09:04):
how we even you know, my parents even owned a home, correct.
Speaker 3 (09:07):
Yeah, No, I agree. And I think the thing is
because we don't know enough about enough. We don't we're
not taught ownership. Matter of fact, in a black and
brown community, especially the black community, homeownership has went from
its high as forty seven percent to about forty one
percent now. So it's actually decreasing in our community. But
that's because we look at home ownership is this like
(09:28):
unattainable obstacle, not knowing it's actually easier to get approved
for a home than a credit card, is it. Yeah,
because for a house, you can get approved at a
five eighty a credit card. You need a six eighty
to a seven hundred, but.
Speaker 1 (09:39):
Your interest will be really high.
Speaker 3 (09:40):
The interests are relevant, especially as an investor.
Speaker 2 (09:44):
Well, okay, as an investor, yes, yeah. What was your
first property that you purchased?
Speaker 3 (09:48):
Personal or investment?
Speaker 1 (09:50):
Personal?
Speaker 3 (09:50):
My first property I bought. It was for two hundred
and fifty thousand in Las Vegas.
Speaker 1 (09:55):
Yes, okay. And then investment. What was your first property?
Speaker 3 (09:57):
It was a property in Cleveland, Ohio and in East Cleveland.
I pay twenty five thousand for it on a credit card.
Speaker 1 (10:04):
That's amazing.
Speaker 3 (10:05):
Definitely. I can show you how I did it too, Yeah,
tell me definitely. So essentially, it's a strategy. So if
I have credit, okay, all I have to do is
calculate how much the credit is gonna cost me. It's
all numbers, so I know if the property is gonna
cost me. It's no different than if I have a mortgage.
So if I pull twenty five thousand from a line
of credit and it's gonna cost me, let's say six
(10:26):
hundred bucks, the property was already cash flowing. See, I
only buy turnkey properties. I don't buy properties. I have
to go in and rehab because there's too much that
can take place that I can't control.
Speaker 1 (10:38):
Trust me, I know I'm dealing with.
Speaker 3 (10:39):
It happened to me, But I'm glad I went through
that because it was the mistake I needed that took
me on a path to doing only turnkey. So the
property was turnkey and already nine hundred and seventy five
dollars a month. This was in twenty eighteen, and so
the rent is going to cover the debt. And now
not only do I have an asset that I can
hold in and make money off of forever, but then
(11:02):
if I wanted to get liquid, all I do I
don't sell my property. Gee, I do what's called a
cash out refinance. This way, I can borrow up to
eighty percent of the value of the home completely tax free.
Speaker 1 (11:14):
Is that like an equity line of credit or a.
Speaker 3 (11:16):
Home equity line of credit is something it's like taking
a second on your house or a line of credit
on your property, which typically you can only do that
on your primary residency. On an investment property, you do
a refinance where you're pulling money out against the equity
of the property. But the whole concept of why I
want to share that in what I want the listeners
(11:37):
to know why that's so powerful. This is why wealthy
people don't save money in the banks. They tuck them
into assets, and then when they want to get liquid,
they refinance the property because it's tax free.
Speaker 2 (11:47):
I was telling one of my friends that the other day,
if you have too much money in the bank, then
there's an issue.
Speaker 1 (11:51):
You're losing money, yeah, because that money's not working for you.
Speaker 2 (11:54):
That it's just that you'll get on money that's sitting
in the bank is nothing compared to what you can
get if you make an investment.
Speaker 1 (12:00):
But some people are also scared, right that it might be.
Speaker 2 (12:03):
A bad investment, or how do I know how to
even get started?
Speaker 1 (12:06):
Who do I even trust?
Speaker 3 (12:07):
So here's the thing I tell people, let's take the
emotions out in the whole trust factor. You just have
to know fifth grade math, you know. So if I
know if I have one hundred thousand dollars, okay, and
I go and buy a property, I find a property
that's just going to cash flow. And unless your property
is in an unlivable condition, somebody is always going to
(12:30):
want to rent it because we all have to live somewhere.
Let's just be honest. But here's why people get in
trouble in real estate Angela. They overbuy. They buy the
property that they want to live in, so it makes
it unattainable from a cash flowing standpoint because the rents
won't service the debt, or they put family members in
or they don't run it like a business. See, I
run my real estate portfolio like a business.
Speaker 1 (12:52):
I'm definitely more emotional when it comes to you.
Speaker 3 (12:54):
We got to help you remove that.
Speaker 1 (12:56):
No, I'm not gonna lie.
Speaker 2 (12:58):
And I've learned, like I've had issues with tenants.
Speaker 3 (13:01):
And placing attenance though so.
Speaker 2 (13:04):
Only in one scenario, and I will not do that again.
Speaker 3 (13:08):
We got to get your property management team.
Speaker 2 (13:10):
Yeah, I actually have one now, so I'm in the
process of trying to remedy that situation. But it was
a learning lesson, like you said, for me, for me
trying to help somebody and being really nice about even
the amount of money that they pay, and then you know,
some people will never it's never enough ever.
Speaker 3 (13:27):
Yeah, and Christmas and come on, yee, I gotta buy
presents and then they don't want to pay rent. So
I just remove that emotion. My tenants don't even know
I'm the owner because all of my properties under an LLC.
Speaker 2 (13:38):
So yeah, and I do have LLCs for all of
my and that's another thing that I learned to do.
But you know, even for me doing like my first
ever airbnb Upstate, it's a beautiful property, but it's a
lot of things that I didn't take into account when
I actually purchased it. You know. Fortunately, it is paying
for itself, you know, in that space, So I'm grateful
for that. But if I had to do things now,
(14:00):
I know, you know, so it hasn't been awful, but
it also I'm like, Okay, I messed up here. I
messed up with this, and the next one that I
do is going to be a little different.
Speaker 3 (14:09):
So I think you kind of answered your question was
how do you protect the bad investment? It's paying for itself,
So we have to overstand that sometimes breaking even is
a win.
Speaker 1 (14:17):
Yeah, it is a win because we lose.
Speaker 3 (14:19):
So often with a lot of investments. But at the
end of the day, and always say, when you buy
real estate the right way, because you make your money
at the purchase. If you buy it the right way,
if things hit the fan, you could sell that property
and at least break even.
Speaker 2 (14:32):
Yeah, and if I sold that property, I wouldn't make
money because it's worth more than when I bought it
a couple of years ago already.
Speaker 1 (14:38):
So you were in a win win situation.
Speaker 3 (14:40):
So I got a place to stay when I need
to go there, right.
Speaker 1 (14:42):
Yes you did.
Speaker 3 (14:42):
Okay, y'all heard that. Yah, y'all heard that.
Speaker 2 (14:45):
But the business side of me is like, well talk
to the real to no kidding. And I do always
try to hook up my friends, like if one of
my friends hits me up, because I think part of
me even having that is a space where I can
go to where I can also let my friends, you know,
be able to to use it as well, absolutely, which
is not very business definitely.
Speaker 3 (15:04):
That's why you get a manager. Let them be the liaison.
Speaker 2 (15:07):
Now let's talk about some of the quote unquote failures
too and what you learn from that.
Speaker 3 (15:12):
Man. So on the real estate side, I think the
biggest one is the emotional part. You know, I don't
buy stuff because it's pretty. I buy stuff because it's profitable.
I'd be like, this is amazing, see, And that's where
people get messed up at you. And so people get
jammed up. And again that's why I don't necessarily go
look at the properties. So here's what I normally do.
My realator will send me a deal and we'll run
(15:33):
the numbers. I'm like, okay, bet the numbers make sense.
Here's the potential rents or a lot of my properties
already have tenants in there, so I'll send my home
inspector over there. As long as the home inspector make
sure that the four main points that I look for
to qualify. I'm looking at roofing, I'm looking at the foundation, heating, plumbing,
(15:54):
and electrical. As long as those things check out and
everything else is good, and as long as I know
it can cash flow and it can service the debt,
that I'm fine with that. Outside of that, those are
typically the biggest mistakes people make. Is they either buy
with emotion, or they buy and they're trying to do
everything themselves, or they are, you know, utilizing all of
(16:16):
their money. The biggest one is one of your highing contractors.
I tell people, if you're a new investor and you're
trying to do real estate flipping and you're calling contractors,
they usually see the worst sucker on your forebee because
they're gonna over They're gonna underbid you, They're gonna bust
open the walls, and then now they're gonna say, okay,
we got a ten thousand dollars plumbing issue. So there's
(16:36):
just too many things that can go wrong. And I
believe in what's called velocity of money, how fast I
can put it out there and how fast I can
get it back, so I mitigate, you know, all of
the errors that can go wrong by either doing turnkey
or buying things that I don't have to go in
and do a bunch of rehab at because it puts
me in a position to make my money back immediately.
Speaker 1 (16:57):
Are you more of a hold and sell type a
person or I hold?
Speaker 3 (17:01):
I don't flip real estate because when you think about wealth,
people think making money or making a lot of money
is being wealthy. But when you look up the definition
and the layman's terms of wealth is an accumulation of assets.
If I sell all of Big Mama's houses, or in
my case, when I got rid of all of my
grandfather's houses, nothing in our family is going to pay
(17:21):
us for the rest of our lives. So I have
to hold my real estate. And this is why I'm
so passionate This is why I've been traveling the country
for the past seven years on my own dime, going
out doing free workshops, doing pop up events, and why
I'm writing books and doing all of these things because
nobody's really teaching us these concepts. These are all concepts
that were not being taught now.
Speaker 1 (17:42):
Some people also feel like, well, does credit matter if
I have cash?
Speaker 3 (17:45):
Absolutelyity, okay, because why would I use all my Why
would I use all my cash when I can go
and play with the bank's money.
Speaker 2 (17:50):
Because I always hear people say that, well, if I
have cash and credit doesn't really matter, it's no big deal.
Speaker 1 (17:55):
And I don't know where that line of thinking came from.
Speaker 3 (17:57):
So this is what I tell people. All Right, let's
say you I have one hundred thousand dollars cash and
I have one hundred thousand dollars worth of credit. Once
your one hundred thousand dollars of cash runs out, how
much do you have left?
Speaker 1 (18:08):
Zero?
Speaker 3 (18:09):
But guess what, I can go to another bank and
get another one hundred thousand, so I'll always have access
to capital.
Speaker 2 (18:14):
How are you when it comes to paying off properties?
What are your thoughts on that great question?
Speaker 3 (18:18):
Because I know you paid off your house, not to.
Speaker 2 (18:20):
Say I paid off well, No, listen, I've paid off
the first house I ever bought, plus the condo and Williamsburg,
plus I bought you know, everything cash except for the
building in Detroit. So the house I have there is
paid for because it was twenty five thousand dollars.
Speaker 3 (18:35):
No. Absolutely, Yeah. So here's my concept about that. When
we hear the term debt free, most people, I think,
think you should not owe anybody but debt free. It
should be consumer debt, wasteful credit card spending, debt, et cetera,
et cetera. When it comes to paying off of property,
it depends on your scenario. For me personally, that's not
(18:56):
necessarily a goal of mine, because I'm gonna always leverage
the debt. So, for example, if I have a string
of properties, and let's say I eventually pay them off,
I'm gonna now do what's called a portfolio loan, which
means I'm gonna go and get a loan against all
five properties and then go and use that money to
go buy another bigger property, whether it's a multifamily, whether
(19:17):
it's a commercial building, which I bought an old historical
bank in Milwaukee. So so I'm always gonna leverage the
debt to go make me more money because the goal
is every single dollar or every single credit dollar, my
goal is to get at least a two point five
x return on that. And I look at every dollar
as an employee. So you deploy money, you deploy capital.
(19:39):
You don't hold it and save it and put it
in the bank.
Speaker 2 (19:42):
Right now, I know that's something, but you know what,
I still feel like relief. I do have mortgages still,
but there's those things that I've paid off, so I
feel stable with those, and then I had the other things.
It makes me not nervous because I always know I
have these assets that if necessary, I can just be like,
all right.
Speaker 1 (19:59):
Well we'll just you know, sell that.
Speaker 3 (20:01):
If you don't sell them against them, you borrow because see,
when you sell it, guess what you gotta do?
Speaker 2 (20:07):
Pay taxes, taxes unless you do a ten thirty one exchange,
and then you can guess something.
Speaker 3 (20:12):
But why not just borrow against it and don't pay
any tax right now you're gonna get the same amount.
Speaker 2 (20:17):
Now, let's talk about what you have going on though
with your coaching program.
Speaker 3 (20:21):
Yeah, so myri I ninety program, which stands for real
estate investing, where I target three different you know, prototypes,
the newbies, people who I call like lifelong strugglers, people
who are who have been trying to double dutch their
way into real estate but can't seem to get a grip,
and in the future planners. And so essentially I have
a step by step process of concepts that teach people
(20:41):
how to buy real estate, but how to build a
real estate team. And I've purchased all my properties literally
from my iPhone ye meaning like it's really just it's
all numbers, and I try to teach people how to
remove the emotions. I actually have a webinar coming up
August thirtieth, where it's a free webinar online. I'm gonna
be teaching people these concepts. I'm gonna be primarily focusing
(21:03):
on speaking to the newbies, show them not only how
to find real estate deals, what constitutes a good deal.
I'm even show them how to get the money from
the banks to do the real estate so you can
have zero dollars, and I'm gonna show you how to
get through the properties. And then September thirtieth, I'm actually
doing the in person event in Milwaukee Wisconsin where we're
actually gonna rent buses and take them into the communities.
(21:24):
I'm gonna show them how to evaluate deals. I'm gonna
have my contractor there. I'm gonna have my property manager there,
my lender, my banker, I mean, I have a banker
who lends for properties what is called a DSCR loan,
which stands for Debt service coverage ratio loan. Essentially, they'll
finance any deal as long as it has a one
(21:44):
to one ratio. So if the mortgage is a thousand,
as long as the rent is at least a thousand
or more, they'll finance the deal. They'll put it under
your business name, so that debt is not on your
personal debt, and it also protects you from getting into
bad deals because now you can't go get a deal
that's worth this and the rent it's here, so you
can't starve. Finance absolutely, so we even have different things
(22:07):
that I teach people how to put things in place
to protect themselves so they don't get jammed up.
Speaker 1 (22:12):
How about instinct?
Speaker 2 (22:13):
What part does instinct play when it comes to purchasing
or investing in real estate or do you feel like
it's only I got to talk to my you know,
my accountant.
Speaker 1 (22:22):
I have to do this, I have to do that.
Speaker 2 (22:23):
Or sometimes are you like, my gut is telling me
don't do this, or my gut is telling me to
go for it.
Speaker 3 (22:29):
So I'm one that believes that you should always follow
your instinct, whether it's in relationships, whether it's in money
or whatever. But I can remove all of that by
just looking at the numbers. So I often say you
can be successful in real estate and business because it's
all fifth grade math.
Speaker 2 (22:46):
Sometimes we can't predict, like I think even in Harlem
when people had opportunities to invest there but people didn't
have the vision to see what it could be. Or
even in Brooklyn as neighborhoods are changing, or in Detroit
some people.
Speaker 3 (22:57):
That I can tell you why that's the case, because
people are trying to get rich off of one deal. Okay,
when people chase equity, which means, hey, let me buy
high and hope that it goes to this, that's the
wrong type of mentality to have. If the goal is, hey,
let me just build Like the game of Monopoly, when
you go across board walk, you're not going based off
(23:17):
of instinct. If somebody's gonna land on there and make money.
You're gonna buy the board walk because if somebody lands
on the board walk on Monopoly, what happens. I gotta
pay you. And so that's no different than how real
estate works. As long as it's making money, I'm gonna
buy it. Because when we think about business as a whole,
I don't go and start a business because of the instinct. Oh,
I think my burgers are gonna do well. I'm going
(23:39):
in knowing, Hey, I make great burgers. I have a
great product. Here's my numbers. It makes sense. I'm gonna
sell it. So once you remove the emotion and do
it strictly off the numbers, I don't go and get
my accountant's permission. I just make sure that, you know,
they make sure my books are good, you know, so
I can remove all of that stigma and the emotion.
Speaker 2 (23:58):
How do you make sure that when people are vetting
out that they can understand. Look, these are the people
that have successfully you know, went through my program. These
are people that I've coached, They've seen success. Where can
people find that information?
Speaker 3 (24:08):
Yeah? I mean one of the things that I believe
is that bad news travels faster than good news. And
if you're out there jamming people up and putting them
in bad situations, it'll be out there, you know. I
tell people just follow my journey, follow my progress. My
results speak for themselves. See. My thing is is I'm
never trying to convince somebody to do business with me.
(24:30):
My thing is is, let me show you the results
come or don't come or don't. But then, more importantly,
I'm not asking you for your money. See, this is
why I think people get jammed up. Let's say you're
doing a.
Speaker 1 (24:40):
Project and they come invest with me.
Speaker 3 (24:42):
Yeah, you're like, hey, park your money with me. I'm
angela yee and this, and as great as you are,
you know, but you like you say, that's not what
you do full time. And so then we're in trusting
that my money gets flipped with you. But then you're
giving me some unbelievable terms like hey, I'm gonna flip
it to fifty percent in nine days. That's not practical.
You can't even do that in the streets, you know.
(25:05):
And so that's where that instinct and common sense that
I believe has to come into, where I'm saying, look,
ye I don't want your money. I'm going to show
you how to use your own money, your own ingenuity.
I'm gonna give you the concepts and you dictate your
own return client in real life you apply it. I'll
give you all of the tools. I'll even give you
my resources. But I don't want I'm not taking your money.
(25:27):
I can go to the bank and get as much
money as I want, So.
Speaker 2 (25:30):
I don't even want the responsibility of anybody at all.
But everything that I've done, I've had the latest project,
I had like a couple of my friends invest with me,
and we did it together, and they were able to
go through the whole process with me, you know, and
either do it or don't know my feelings, but you know, they're.
Speaker 1 (25:46):
Really happy they did it. I'm going to say that.
Speaker 2 (25:48):
But I also wanted to be able to walk through
doing something like a thirty unit building that I've never
done before, so that when people ask me about it,
I want to feel more educated on telling them what
to do, rather than me just well, this is what
you're supposed to do, right, some more like this is
what I did.
Speaker 3 (26:02):
And another thing too, even with that e is that
sometimes people don't do their own due diligence. Sometimes we
have to take the drug called accountability.
Speaker 1 (26:09):
Ourselves, Like what made me think? Right?
Speaker 3 (26:12):
Not only that, Like if you bring me a deal
and I'm like, okay, what LLC is this going under?
And you're like, no, this is going under my ned, Like,
I'm not doing that deal. I need to see paperwork,
lawyers need to be involved. The money is going to scrow.
I'm not sending it to your bank account. So we
got us. And that's the thing that I tell people,
and I wrote this in my book Full Time CEO.
We have to learn about business, yes, but we're not
(26:35):
learning the just the basics about business. If you tell
me it's under your name, I'm not doing that deal.
Speaker 1 (26:42):
But you know what, let's end it with that. Let's
talk about with Will Roundchie.
Speaker 2 (26:45):
Just give people some tips if you're doing something that
you should watch out for, and so that when people
are doing things, if they are planning to invest whatever
it is that they're doing, what are some things that
you are saying you should look out for, because like
you said, don't send the money to a per and
what is the LLC?
Speaker 1 (27:01):
Like, what are some things that you should look out for?
Speaker 3 (27:02):
How much time we got because I could go for
three days I want to hear this, so I mean
bottom line, absolutely bottom line. First of all, let's start
with our instinct. Let's do our own due diligence. Now,
if somebody's want to do business with me or I'm
looking to do business, first thing I'm gonna do is
I'm gonna check out to see if they have a
credible business. You'd be surprised how many people are doing
(27:23):
these projects and you go to the secretary of state
and their business is not active. So literally find out
what that person business entity is or what entity that
project is going to be tied to, and you can
go to that state's Secretary of State and look it
up for free to even see if it's active or not.
Then you want to find out who are all of
the managing members on there. If it's an LLC, they'll
(27:47):
be managing members. If it's an incorporation, it'll be a
directors and presidents and all of that. And if it's
an es corp, it's probably still tied to either an
LLC or an incorporation. Next is how are you saying
the money? If you're doing it through an escrow account,
which typically is a you know, an account that an
(28:07):
attorney or a title company where they hold.
Speaker 2 (28:09):
The money can't with anything else.
Speaker 3 (28:13):
Then that means that at least your money is protected.
If someone said, hey, send me a cash shap or
wire the money to my bank account, I won't even
do business with people a cash app. But I got
beat up on Facebook for saying that. But if somebody
told me to send them a cash shop, I'm not
doing it. Okay, okay. If they tell me to wire
(28:34):
it to their personal or even business bank account, I'm
not doing it. So you want to watch out for
those signs more, and then secondly, find out what type
of project is involved. Who are all of the players
that's involved with the project. When it comes to real estate,
I don't care if my mam is selling me a house.
Sorry mama, I know you might be watching, but I'm
using a title company. I've actually had clients and mentees
(28:57):
who went and bought real estate from other people. They
wired the money to somebody's bank account or quote unquote
the seller, and then that seller took the money and
sold the property again.
Speaker 1 (29:07):
Because they didn't have the title.
Speaker 3 (29:08):
You don't have the title, So I'm only doing things
making sure that my money is going through an escrow
account or a title company, and I'm use an attorney.
See a thing a lot of people don't realize is
that when you are doing a real estate transaction, the
attorney doesn't necessarily charge you a bunch of money to
review the contract. They don't charge. They're gonna be there
(29:29):
to protect you. And so it may cost you five
hundred dollars to use that attorney, but put it on
a credit card. So we have to stop cutting corners
because I say often that cutting corners or taking shortcuts
is expensive.
Speaker 1 (29:44):
Yes, you're absolutely, it's expensive inside yourself.
Speaker 3 (29:46):
You gotta do it right or pay twice.
Speaker 2 (29:48):
And if you don't have the money to pay for
an attorney or to pay.
Speaker 3 (29:51):
Probably can't.
Speaker 1 (29:52):
Yeah, it's not the time to do it.
Speaker 3 (29:53):
It's not the time to do.
Speaker 2 (29:54):
Because I think people also want to rush into doing
real estate and sometimes financially it may not be.
Speaker 1 (29:59):
But you said you can do it for zero dollars.
Speaker 3 (30:01):
Well, when I say zero dollars meaning because let me
clear that up, I'm be on the blogs. Let me
clear this up. When I say zero dollars, gee, I'm
saying I don't necessarily have to use my money. I
can go to the bank credit. Got to have good credit,
get a line of credit, and then I'm going to
use the bank's money to do the deal. So can
(30:22):
we put the close captions under there to Okay? So yeah,
so I just try to keep it simple. I love
to have fun at what I'm doing, but yeah, use
your intuition. Hire be a professional at hiring professionals. Like
if I know that I don't know how to read
contracts because I don't read legal LEAs, I'm going to
hire an attorney. It may cost me to three hundred dollars. Look,
(30:45):
just don't go turn up that weekend and.
Speaker 2 (30:48):
An attorney to look at a contract when it comes
to something like that, I don't even though I've done deal,
so I'm never going to try to do that.
Speaker 3 (30:54):
I don't even sign birthday cards Gie without my attorn
that it might be some fine print in there. I
don't know. I gotta be careful out there, all right.
Speaker 1 (31:05):
Well, will Roundchie, thank you so much. And how can
people find you?
Speaker 2 (31:07):
And how can they also sign up for the Real
Estate Investing ninety coaching program?
Speaker 3 (31:11):
Yeah, so they can follow me across all social media
platforms at mister will Rountree at mister will Roundtree, I'm
on YouTube, I'm on Facebook, Instagram, LinkedIn, et cetera, et cetera.
And they can actually go online to roundtreemasterclass dot com.
The webinar is free ninety nine, so it's for the
free sky, and so go on there. Like I say,
(31:33):
and again, I'm not here to convince people. That's not
my job. And my job is just to give people
enough information so they can make an educated decision for themselves.
Speaker 2 (31:41):
And those people who are intrigued enough and want to
do it, then do it. And also don't feel like
you can be lazy once you get in there, do
the coaching.
Speaker 1 (31:48):
You also have work to do as you do.
Speaker 3 (31:50):
Oh can I say something real quick to that. I
want people to know that you're not gonna get rich
overnight doing real estate. And I think that's where people
get messed up at you because they go in saying, hey,
let me flip this money real quick, let me leave
my job, and it doesn't work like that. I tell
people real estate should be a retirement plan and it's
not a.
Speaker 2 (32:06):
Stock market too. You're not going to get rich overnight, definitely.
You know, doing stocks is very rare that something hits
in that way that that was.
Speaker 3 (32:14):
A once in a million with games stopping everything.
Speaker 2 (32:17):
So but no, definitely, and it went bad for some people, right, okay,
all right, well.
Speaker 1 (32:22):
Thank you so much for joining us. I do really
appreciate it.
Speaker 2 (32:24):
You know, I love talking about real estate and I'm
trying to learn things myself. So today I feel like
I had some work to do.
Speaker 3 (32:30):
Well, since you're gonna follow me now, now you can
hit me up and say, hey, Will, what do I
do any situations?
Speaker 1 (32:37):
All right, well, thank you so much. It's a wealth Wednesday,
mister will Rowntree
Way Up With Angela Yee News
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Angela Yee
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Have you ever wondered what life might be like if you stopped worrying about being wanted, and focused on understanding what you actually want? That was the question Hope Woodard asked herself after a string of situationships inspired her to take a break from sex and dating. She went "boysober," a personal concept that sparked a global movement among women looking to prioritize themselves over men. Now, Hope is looking to expand the ways we explore our relationship to relationships. Taking a bold, unfiltered look into modern love, romance, and self-discovery, Boysober will dive into messy stories about dating, sex, love, friendship, and breaking generational patterns—all with humor, vulnerability, and a fresh perspective.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com