September 30, 2025 • 54 mins
From a quick “clean and list” starter flip to full financial freedom by mastering systems, roles, and mindset.
🔥 Inside This Episode:
🏡 How one investor turned a light rehab + relist into momentum for multi-unit deals
💰 The seller-financed 55-unit acquisition—structured at 0% down and 2.38% interest
⚙️ Using AppFolio + a VA to automate portfolio management and save hours per week
🔁 Why focusing on multiple exits (flip, BRRRR, midterm rental) boosts NOI and long-term wealth
🧩 How “Like, Love, Tolerate” role clarity eliminates burnout and accelerates growth
🛠️ Why hiring pros (not DIY) actually saves you money in holding costs
📈 The math behind forced appreciation—and how to underwrite deals in high-rate markets
🌊 Launching Bay House Landing: transforming investing into community impact
Whether you’re on your first deal or scaling past 50 doors, this episode breaks down how discipline, systems, and creative finance can fast-track your journey to freedom.
🎧 Listen now and start building the systems that keep your portfolio—and your life—running on autopilot.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_04 (00:00):
Hey everybody, we are back with another amazing
episode.
Well, I don't even know if it'samazing yet, but I think it's
gonna be an amazing episode withtwo of my favorite people in
real estate investing who I'llintroduce here in a minute.
But I'm your host, CoreyRaymond.
And uh before we get started,like I do every week, we are
talking about our sponsor,Wisconsin Discount Properties.
Uh, every Monday morning, youguys can get deals put right in
(00:23):
your inbox, right on your telly.
We'll shoot you little texts,let you know what's going on.
And uh, we're doing anywherefrom two to six deals a week,
seems to be about the average.
So if you are looking for dealflow and you're not on our list,
you are missing out.
Easy way to get on.
We don't even charge you.
You just go to WisconsinDiscount Properties.com, plug
your information in, get addedto the list, and then one of us
(00:45):
will give you a call, Reese,Connor, myself, and have a
little conversation, get to knowyou, find out your goals, try to
help connect you to some of theresources you'll need and all
that sort of stuff.
Whether you're out of state orin state, doesn't matter.
We've got deals for you, andwe're here to help you out.
So go to Wisconsin DiscountProperties.com, get on the list,
and uh start getting some dealssent to you right away.
With that, let me bring in someOGs in real estate as I call
(01:08):
them now, which I don't know ifthey ever thought they'd be OGs,
but I have Scott and ShannonRichardson.
What's going on, guys?
SPEAKER_03 (01:18):
Well just living our dream, man.
It's uh been an amazing journeysince we first met you back in
gosh, what 2020?
SPEAKER_02 (01:27):
Yeah, early 2020.
SPEAKER_03 (01:30):
Back when Corey was like in the trenches doing his
thing, like at the at the toursand just pumping people up to
get some properties and look atthe growth, like for both both
of us.
You guys have just exploded.
SPEAKER_04 (01:45):
It is crazy.
I love having theseconversations that think back to
like the old days, right?
Like the humble beginnings,right?
Of the grind and what it waslike back then.
I miss some of that.
Like I do.
I miss the I miss so for thoseof you guys that are listening.
Scott's Scott mentioned thetours.
Uh in our wholesale process, weused to do, we call them
inspection periods, and we wouldallow people to come for about
an hour.
I think we would do like an hourwindow.
(02:06):
You could show up at any point,you could bring your contractor,
you could do whatever youwanted, and walk through the
properties.
And uh, for me, it was alwaysfun.
Like I always got I got a blast.
Sometimes we'd even bringcoolers and hang out and have
some drinks in the driveway ifthe place was vacant, you know,
and we would have some fun timeswith it.
And then COVID happened, and uhwe realized that was a pretty
big vulnerability in ourprocess.
(02:26):
You couldn't have 20 peoplewalking through a house anymore.
And so we we pivoted and we wentto this system that now we've
we've done.
And actually, most people wefound, even though they miss the
social aspect, they prefer theconvenience of this new process.
So we send out an email, youclick on a picture, we've got an
inspection report in there nowthat we pay for.
It's a third-party inspection,you got a video walkthrough.
(02:50):
And for people who are, I guess,more less emotional about the
properties and more logicalabout the properties, it's it's
a really nice process.
They just can my goal was alwaysI wanted you to be able to sit
on the can and instead oflooking at Facebook, you could
evaluate a property and make 20,30 grand and you know, that
15-minute window.
So that's what that's ourprocess.
(03:10):
But the old process was thetours, man.
And that's when you guysstarted.
Was that was that your firstremind us again, how take us
back.
How did you guys get into realestate?
Was that when you got started?
Was 2020?
SPEAKER_01 (03:23):
Um, it was pretty close to that.
Um, before that, we were lookingfor something that would pull us
out of our jobs but give us andfigure out how to give us some
passive income.
And we had a few ideas, but wereally wanted something that we
could work together on.
And um, you know, it's alwaysfun to work in real estate and
live with your partner, youknow, like live together.
So we didn't know what we weregetting ourselves into, but um,
(03:44):
our goal was just to be able tobuild up that passive income.
Yeah, so that's awesome.
SPEAKER_04 (03:48):
And you guys accomplished that goal.
What year did you guys gofull-time real estate?
SPEAKER_01 (03:57):
Um, well as you know, but nobody else does.
Like part of uh what we did waswe actually joined the launch
mastermind that you and Carriedid in early 2020, and then I
was able to leave my job in uhMarch of 2021.
SPEAKER_03 (04:14):
So just a year after, and then yeah, and then I
left in August of 2023.
So way ahead of our goals.
Like we had a goal, a five-yearplan for me, and I was like,
Yep, that's probably right ontrack.
SPEAKER_04 (04:26):
No, three years, and I think we were probably pushing
you that you could have probablydone it earlier.
I think you were hanging ontothe blankie a little bit there,
right?
SPEAKER_03 (04:38):
Yeah, I think it was in 20, probably late 21, early
22 that you were talking about,just calling her quits.
But yeah, we kept pushingforward just to make sure that
we have your blanket, that'sright.
SPEAKER_04 (04:51):
That was my job was to push you and make you think a
little bit differently than whatwhat you were capable of
thinking, right?
Yeah, for sure.
That's exciting.
So talk a little bit.
What uh let's go back to thatfirst purchase.
I remember it like it wasyesterday.
I tell you, I tell your guys'story to so many people that are
like in fact, last night uh atthe time we're recording this,
(05:13):
we had a meeting, the REIsuccess meeting.
Great meeting.
We had an attorney there who wason fire last night.
He was hilarious and tons ofknowledge.
And then we had our uh ourresident accountant, Jake
Calvert's there talking about alot of a lot of tax implications
of some of the LLSC structuresand things like that.
But before that, I met with aguy who's bought a few deals,
(05:33):
but he's looking to buy somemore deals, and he was like, Ah,
I'm looking at some of thesedeals, and you know, this one
says it's ARV is 210.
How do I know I'm gonna get 210?
And what do I need to do to getto 210?
I said, Well, you might not evenhave to do 210.
I said, do the Scott and Shannonmethod, just get in and out of
the deal.
So tell it, take us back to thatfirst deal because this is one
of my favorite stories that Itell people all the time.
SPEAKER_00 (05:57):
Do I tell it?
SPEAKER_03 (05:58):
Uh, sure.
So we we you know, we werestruggling, as every new
investor does, it's like, ohman, I just want to get a deal.
I want to get a deal, and you'rejust spinning your wheels, like,
how am I gonna get this?
And then this uh single familyproperty came up on your
wholesale list in this was inJune of 2020.
Yeah, and um it was a beautifulhome.
(06:21):
Um, you know, we walked throughit and it was like, okay, we're
putting an offer in on thisthing, and my gosh, finally one
hit.
And we walked through it, andit's like, man, this will be so
fun to flip, and we put all thishere and this here, and then
Carrie and Corey came in andwalked through the property with
us, and they're like, don't evenbother with that.
(06:41):
This thing is just a clean,clean it up, take the 70s out of
it, and let's put it back on themarket.
And we're like, sure, we shoulddo that.
Oh, yeah, this will be you'llmake money on this one.
So we put faith in that, wetrusted the process.
And I took a week off from myW-2 and we just cleaned this
thing up, pulled all the stuffout of it, yeah, and we had it
on the market within a week ofactually closing.
SPEAKER_01 (07:04):
Three and a half days later, we had pictures
taken.
Yeah, yeah, we just reallypulled the 70s out and pulled a
lot of stuff out of it andreally cleaned it up.
SPEAKER_03 (07:13):
But and then we had an offer on it within what a
week.
A couple days.
I will less than a week, sure.
And which is awesome.
SPEAKER_04 (07:22):
And like I always think about the time.
This is where my point with thestory I always use it as like,
right?
And this is the same point thatCarrie and I made to you guys.
Like, you guys could have gonein and you could have done all
the cool stuff.
And I know Shannon, you werekind of mad because you were
like, I just want to get in andlike do creative stuff and like
make it cute.
And we're like, you could, Imean, sure, you can.
But in our professional opinion,I think you could get in and out
(07:44):
of this thing relatively quicklyand make up make a few bucks,
take that money, roll it intothe next one, and keep going.
And uh, and and you guys weregood students, you listened and
it worked out.
And uh, I would have been reallymad if it didn't work.
Uh you know, that's always therisky part of giving that
advice.
But it worked out, but thebackup plan was you could always
go do the full reno if if itdidn't sell, right?
(08:05):
And that was kind of our gameplan with you guys is like do
this quick one, see if you canmake some money quick, get in
and out of it.
If it doesn't work, you alwayscan take it to that next phase
of the rehab, right?
SPEAKER_03 (08:17):
Right, yeah, I think that's a really good point that
you make because when you dothese deals, you need to have
multiple exit strategies.
And we knew that we could dothis, and if it didn't work, we
always have that next exitstrategy.
And even if that, we if itdidn't sell, we had the
opportunity to rent it and thenjust let it sit while we cash
flowed it, and then thepossibility and changes of
(08:38):
market that it would sell evenat a higher price.
So having exit strategies is sokey when you're and you guys
bought it, right?
SPEAKER_04 (08:44):
You know, that's the other piece of that too, Scott.
Is like you guys paid us a nicefee, which is great, appreciate
that.
Kids can eat again.
Um, but then you guys had enoughmargin in there to be able to
have that flexibility, right?
Like, hey, we still we can dothis minimum re rehab, we'll
still make money at this minimumrehab.
That doesn't work, we still havethis spread to go here.
That doesn't work, we couldstill cash flow it because the
(09:06):
numbers still make sense there.
Now that in this market, I'mseeing less and less of that
third option being there ofbeing able to cash flow a rental
now if you go full rental onsome of these things, just where
the price of the market is andwhere interest rates are
compared to where they were in2020.
Um, but you still had twostrategies, right?
Like minimum flip, or we know wecan sell it if we go full full
(09:28):
tilt, and we'll still eithereven break even on your first
flip is still a great learningexperience and yeah, and I think
just being open to beingcreative and being able to pivot
is key.
SPEAKER_01 (09:41):
So for instance, um we kind of laugh because a few
months later we ended up gettingour first duplex so that we when
we went to um the launchmasterby, we could say, hey, we
had a couple doors, right?
And then on the way home, wewere so jazzed up that we rode
by um a triplex that you guyshad listed.
And an hour later we put in aduplex.
(10:01):
But one of the things, RB, putit put in an offer.
Sorry, put in an offer on thetriplex.
And one of the things that wedidn't really do the best due
diligence was we were like, oh,there's one furnace, so that
means three units, guess what?
But that was around the timewe're like, okay, how can we
still make this happen?
And so what we did was werenovated one unit first and
(10:23):
then put furniture in.
And um, we started doing somecorporate housing, which is
midterm housing, people call itmidterm.
Um, and then we ended up doing asecond one.
So then this house really cashflowed.
Like it went from okay, it'sjust marginal to now we got
$4,500 a month cash flow.
So really being able to likejust change and pivot is.
SPEAKER_04 (10:45):
And I love that because I see, like for me, when
I started, I was very much likea Burr investor only.
And I only I'm like, I we me andCarrie were like, we are never
flipping properties ever.
And then like our second deal,we ended up flipping a four
unit.
And I'm like, part of me wasreally sad.
I was like, no, four units go.
We did all the work, no.
(11:05):
But at the time, my goal was toget out of my corporate
corporate job, and I was like,I'll do it through the Burr
method.
That's when I started this.
I'm like 200 bucks a door.
I know I only need like ahundred doors and we'll be
living on a beach, you know,whatever.
And then yeah, and then and thenwe well, then I we did our first
burr, and I was like kind ofdepressed because I was like,
(11:26):
man, that's a lot of work to gettwo doors.
Like it's gonna take a long timeto get to this goal.
And then we did a flip, and Iwas like, huh, pivot, going back
to your point, Shannon.
Let's pivot and let's just wedon't want to flip necessarily,
but let's just flip out ofnecessity as many properties as
we can to build up our bankaccount where I can get rid of
(11:47):
my blankie at the time, right?
It's got a corporate job and theconsistent income and and leave
this thing quicker than maybe wethought we could.
And so, you know, that pivotingpiece I think is really
important.
I think so many people get stuckin like I I'm doing this and
this is all I have to do whenthey're starting out.
I think it's great later on.
Like later on, you can kind oflike get like figure out what
you like, and you've done a fewdifferent things and you can
(12:08):
kind of get in a certain lane.
Um, but having that wideexperience, I think also helps
you out of a bad buy.
Like we don't always makeperfect buys, but having that
experience of doing all thesedifferent things, now you can,
like you said, you can be like,hey, let's do this midterm thing
on this one because we you knowwe didn't we didn't plan for
this furnace.
Now we can now oh now look, it'sa winner.
It was a dud.
(12:29):
Yeah, now it's a winner.
SPEAKER_01 (12:33):
Well, and we burred into that one too, so that was
awesome about it.
And then 18 months later, so wewanted a house down by you.
We wanted a house in Florida.
So 18 months later, we wereable, we call them long-term
flips.
So we were able to sell that,and then that paid for all of
our down payment basically andgot us our Florida house.
(12:54):
So I mean, right?
SPEAKER_04 (12:58):
Do you guys still have the Florida house?
Yeah, okay, cool.
Are you guys Airbnb in thatstill?
Okay.
SPEAKER_01 (13:06):
We are, yeah, we are, and we um, you know, we
have some maintenance we have todo the month of January down
there, you know.
SPEAKER_00 (13:14):
And a couple other yeah, that's really tough.
SPEAKER_04 (13:18):
Yeah, you have to you have to go to Florida to do
that, which is really rough inthe winter time here to get out
of Wisconsin and go to Floridaand do maintenance.
Terrible, yeah.
So what else?
What else?
So, okay, so you guys wentthere, you bought you guys had
what five was that if I'mcounting correctly five units
under management at the time,sold the three, bought the
(13:40):
Florida, so now you're down tothree.
SPEAKER_01 (13:42):
So you had the duplex and then um no, in
between before we sold it, yeah.
We added um we added a few otherduplexes.
Um, I think we're up to like13-ish at that point.
SPEAKER_04 (13:55):
Okay.
So you parlay you parlayed thethree unit into a Florida
vacation house flash, probablyCash Floyd Airbnb, if I had to
assume.
And then you were able to keepall these other doors.
Then you guys went into a biggeracquisition, correct?
Talk talk to us about that,because I think this is a really
(14:15):
cool.
Like you started out, you kindof got your feet wet, you you
did a bunch of different stuff,and then you hit you kind of hit
a bigger, a bigger deal here.
Talk a little bit about thatone.
unknown (14:25):
Yeah.
SPEAKER_01 (14:26):
Yeah.
For us, so the way we were kindof getting some of the
properties was by implementingthe the midterm strategy, which
was a really good one at thetime because it was after COVID
and a high need for that.
Um, I wouldn't necessarily saythat's the best way to go now.
However, um, for us, our biggestneedle mover has always been
(14:47):
networking and developingrelationships.
And um, you know, in fact, thatwhen we were looking at we want
to do real estate, the first twopeople that we were told to meet
was you and Tony Breuer.
So we went to our first meeting,we met them, and then Tony
introduced us to a few people,you know, and you did, and and
then our network just keptexpanding.
And so um, we tried doing a fewdeals with somebody that um they
(15:13):
had the money and we didn't, andit never kind of worked out.
But one day then that personreached out and said, Hey, I'm
looking at do moving intostorage and new building
development.
Are you interested in any ofthese properties?
And I said, Yeah, I I would likethem all.
Um, and it came down to like 55doors, and so yeah, so I
(15:35):
thought, well, why not ask?
Right?
I'll I think no, right?
And my the answer back was okay,let's figure out how to do it.
And so we spent probably aboutsix months trying to structure
and make a deal that was awin-win for both of us.
SPEAKER_04 (15:50):
Awesome.
So you guys had 13-ish doors, isthat right?
From before, is that what wesaid?
And then you bam hit a big 55banger.
What was that like?
Because I I also was talking toanother guy last night who's
newer to the game, he's got afew doors, and I saw this from
some people in launch, actually.
So we have we had Logan Rankincome in, who for those of you in
the real estate space, if youdon't know Logan, you got to go
(16:12):
start following him wherever he,you know, LinkedIn, whatever
other socials he's on.
The guy's a freaking genius,unicorn.
But we were good friends withLogan.
He came in every time we didlaunch and would do a little
presentation.
And some of the folks in yourclass, as I'll call it, of
launch, they I think they got alittle distracted with going
after the big the big dogs,right?
And it sunk them.
(16:33):
Like, I don't, I mean, some ofthose people aren't in real
estate anymore because they werehitting base hit after base hit
after base hit, they were doingreally, really well, and then
all of a sudden they took theireyes off of that and went for
something like what you guyspicked up, and it worked out for
you guys.
For them, the ones that theywent after, they did it did not
work out.
So, going from a a a niceportfolio, 13 units, to adding
(16:56):
55.
Talk about that transition.
What were some of the painpoints of that?
What were some of the struggles?
What did you guys learn throughthat?
And what has been the outcomenow, a couple years later?
SPEAKER_00 (17:07):
I'm gonna say one word before I let you go on, but
I'm gonna say systems.
SPEAKER_03 (17:11):
Yeah.
SPEAKER_00 (17:12):
So go ahead.
SPEAKER_03 (17:13):
Yeah, so when you have that big of a portfolio,
the whole thing is like, how amI gonna manage this?
And sitting down and andutilizing the current system
that this person was using madesuch a huge difference, which
rolls into what Shannon justsaid is systems.
It's a program that basically isproviding you three employees
(17:35):
because of how the programworks.
So it does so much of theautomation for you, and you
don't you don't have to do asmuch with it.
And the other thing that wedecided to do is bring in
property management to us to runit instead of having somebody
else do it.
That's not without its you know,scared.
SPEAKER_00 (17:54):
We needed to do that actually to cash flow anything
in the beginning.
SPEAKER_03 (17:58):
So it was like out of necessity to make the numbers
work.
SPEAKER_00 (18:00):
So we were like, Okay, right, yeah, so that was a
change, yep, and then roledelineation, right?
SPEAKER_03 (18:07):
Yeah, so it's that's the biggest thing.
So when we talk aboutrelationships with um business
and with marriage, the biggestthing to make your marriage work
well in business together isrole delineation, and that way,
as they say, stay in your lane,bro.
Because once you startinterweaving those things,
(18:27):
uh-huh heads start knocking, andit makes it very difficult.
So we've done really well withsitting down with our the way
that we did it was we did a likeit, love it, tolerate it method.
We put down all the jobs thatneeded to be done with it.
Went back and we, you know,individually circled.
Okay, this is what I can do.
I hate this, so I don't want todo it.
SPEAKER_04 (18:47):
Came together, and that's that is gold, people.
Go back and re-listen to thatpart if you're a couple or you
have a business partner becausethat is gold right there.
unknown (18:56):
We did it so simply on paper.
SPEAKER_01 (18:57):
We did it so simply on paper.
When we left, actually launched.
We stayed a couple extra days.
We drove down to Bonita Springsand we did a like it, hate it,
tolerate it.
So it's on paper.
We wrote every roll down and wejust circled, and that's how we
initially separated.
It makes life a lot moreharmonious.
SPEAKER_03 (19:15):
It does, yeah.
I mean, it's not it's not thatyou won't have some of those
tensions, but overall, it's sominimal, and you know what each
other is doing, and it's justtrusting the process at that
point.
Yeah, for sure.
SPEAKER_04 (19:26):
And what I've noticed when Carrie and I do
that too in our businesses islike if I start overstepping,
and because it's always methat's overstepping, it's never
her.
Like, she's not like, How can Iget into doing sales?
Like, and that's not herpersonality, it's always me,
like just being like a hawk,like, hey, ah, you do this.
She's like, Hey, she can justremind me, and I I give her
permission like ahead of time.
(19:47):
Like, hey, if I'm stepping inyour lane, like you have
permission to kind of smack menicely and say, Hey, you're in
my buddy, you're in my lane, andthen it's like a oh shit, like,
yes, we agreed to this.
All right, yep.
I'll step back over here andstay, you know, like it, but it
it is healthy.
SPEAKER_00 (20:04):
And I keep keeping it light and being like, because
you'll actually say that to me.
Stay in your lane, bro.
SPEAKER_04 (20:12):
Yeah, yeah, yeah.
Shannon, you and I are probablymore similar personalities, and
Scott and Carrie have alwaysbeen like more aligned in their
personality types, and so yeah,that's funny that you're having
the same experience I'm having.
Of uh yeah, stay in your lane,bro.
That's so good.
The other thing that I wouldgive uh couples out there,
business partners, a littlenugget that was really helpful
for us as a couple was readingRocket Fuel.
(20:35):
So, Rocket Fuel, if you guyshaven't read that book, awesome
book.
If you're an entrepreneur andyou're like me and reading is a
challenge for you, you canlisten to it on Audible, or your
integrator type, your Scott oryour Carrie, could read it and
then highlight the parts thatyou should read, and then you
only have to read a certain fewpages.
Like that's what Carrie did.
She's like, You can just need toread these two chapters, and I
(20:56):
think you'll understand where myfrustration is.
And I was like, Okay, I read.
I was like, Oh my gosh, thismakes so much sense.
So, or you can run it throughChat GPT.
I'm sure Chat GPT now could justtell you the highlights of
rocket fuel and you could takethe bullet points and implement.
Yeah.
SPEAKER_01 (21:11):
Yeah.
And you know, when you said thatbefore, that when you asked what
was the other reason forsuccess, is he had said, okay,
now we we have enough that wehave to get it really rolling
and doing it well, versusbecause you and I would be like,
Okay, there's all these otheropportunities.
I struggled for a long time tobe like, okay, I love the
acquisition game, I love pullingthem in, doing all that.
(21:34):
I struggled just to be like,okay, we've got to get this
foundation set and solid beforewe can go to the next thing.
And um, he was always rightthere to remind me, nope, we're
getting in it.
Because there was like, oh, Iwanted this resort at one point
that was for sale.
He's like, fine, you go run theresort by yourself.
I'm not in.
And so then I thought, yeah,yeah.
You're like, damn, you're such aparty pooper, Scott.
SPEAKER_04 (21:56):
Come on, man.
Such a drag, dude.
SPEAKER_03 (22:01):
Just my philosophy.
Like, you have to maximize whatyou currently have because
there's so much more that youcan do with what your current
portfolio is.
So before you start moving offin the other directions,
maximize that so that you knowyou're getting the best cash
flow that you can, that yoursystem is the best for that
particular property.
And that is huge in beingsuccessful in a business.
SPEAKER_01 (22:22):
Yeah.
And we can yeah, and we didn'twant to be spending 70, 80 hours
all the you know, in this oncewe got it built, you know, which
we had to in the beginning.
We're pulling out cabinetsinstead of going boating or
whatever it was, but um, youknow, now we have it pretty well
oiled that we're probably eachworking like 10 hours a week on
the real estate part, you know.
(22:42):
It's yeah, and it allows a lotof time for free time.
That is so cool.
SPEAKER_04 (22:46):
I think uh going back to a couple things I want
to touch back on with this forthe audience here.
You guys picked up 55 units.
I mean, that's you're literallybuying a business, right?
It's not it is real estate, butit's a business at that point.
Uh, you got if you don't knowhow to run a that particular
business, and then you're justlike, ah, it'll run itself, and
then you go buy anotherbusiness, you're just piling on
(23:08):
a disaster.
And I think that's probably whatwe saw with some of the other
folks in your class.
Like they got distracted, theybought a bunch of stuff, just
kind of set it, forget it, moveon to the next thing, go and buy
actual like a literal business,don't know how to run that.
Now they've got disasters justhappening everywhere, it
compounds and it overwhelms, andbefore you know it, you're
underwater and you're sunk,right?
And I think you guys did areally wise thing there to just
(23:30):
sit back, let's get this babyrolling.
You know, that's the hard partfor me, too, Shannon.
Again, very similar personalitytypes.
I'm very much like, all right, Iif that you put it on a like
love it thing, I hate managementstuff.
I hate sitting and getting intotedious detail stuff.
Like, I just want to go do bigvision, big idea, big stuff, let
somebody else run it.
(23:50):
But then like, I gotta have thewho's to do it, right?
And you know, you've got a whothere in Scott that you know is
wise enough to be like, allright, we need to sit down and
pump the brakes and get thisbaby oiled up.
Now we can go do somethinglater, Shannon.
We'll go buy something later,which we'll get into in a
second, where that led to.
SPEAKER_03 (24:07):
But well, that's I mean, I love that you brought
that up about the who's becausethat's another key nugget in
real estate, is so many peoplefeel like they can do it
themselves.
And oh yeah, I mean, I d I'm notgonna hire a guy to do this
rehab for me.
I can put this in, the scoring,and I can do all this stuff.
(24:28):
And it takes them so long, andtheir holding cost becomes so
much that you could have broughtin a professional to take care
of it, less stress for you, lessmoney paid out in the long run,
and you're getting cash flowthat much faster because of the
sure.
SPEAKER_04 (24:40):
We I just that was another conversation with that
same gentleman I shared yourguy's story with last night, is
is handy, right?
You can get in and do the work.
And I said, you know, that's thetrap I think you get into when
you start is you need the money.
Usually you're not in afinancial financial abundance
position when you're gettinginto real estate, you're getting
into real estate to createfinancial abundance for
yourself, right?
And so I think like if you arehandy, you immediately go to
(25:02):
like the pride, the moneysavings justification for it,
and you can really get yourselfin that that trap of doing all
of the work all the time.
And then you've like all of asudden your wife wants to leave
you and your kids don't know whoyou are because you work a
full-time job, and then nightsand weekends you're there
working on the property to make20 grand.
When you could have hired thatout, you could have made 15
(25:22):
grand a lot quicker.
Yes, you made less, but yourprofit per hour was way higher.
You're now you could now youcould start to scale, do
multiple projects at the sametime, and now you could be
making$30,000,$40,000.
Yes, you're making less perdeal, but you can scale it and
you can have your schedule back.
Like, yes, you're gonna getcalls, you're gonna have to go
(25:43):
run and do stuff, but you're notthere having to do the work on
the properties all the time.
And there's I think there's abalance.
Like sometimes when you'restarting out, like we talk
about, it is probably good toget in if you're handy and do a
few of the things so youunderstand the process a little
bit and you know sort of how togo through that.
Um, I am not handy, so that Iwould get zero value from doing
(26:04):
that, probably.
I am I my time is better spentfiguring out how to find the
right people to do it than forme to get in there.
But for some people, I thinkthat there is some value, but
it's a trap.
SPEAKER_03 (26:16):
And you think about um anything ever happened, like
take two scenarios, like beingable to go away for four or five
weeks.
If you have a team in place thatare your all-stars that can take
care of the issues with thebusiness while you're gone, you
don't have to worry about it.
And then what happens if youhave some type of a medical
issue or whatever and you andyou can't physically do
something?
(26:36):
Having that team in place allowsyour business to continue to
succeed.
If you're the one having to doit all, yeah, you're you're just
sending up yourself.
SPEAKER_04 (26:44):
I see that actually in a lot of the uh professions.
Like, I have a buddy up here inDoor County who's a
chiropractor.
Oddly enough, I asked him to gogolfing and he's like, I can't,
my back's uh I threw my back outor something.
And I was like, dude, how areyou gonna keep doing your
business?
Like you, like dentist,chiropractors, like it's you.
You you something happens toyou, you got nothing coming in
(27:05):
then.
So, same same thing in realestate.
If you're in there swinginghammers and it's you doing all
the work, you throw your backout, or you know, you your
shoulder goes or something, whatare you gonna do?
I mean, you're stuck then nowyou and then the cost is every
day.
It's not sold.
Your holding costs are ticking,ticket, tick, tick, tick.
(27:28):
Well, I hate that.
Me too.
That's right.
That's why I told you to sellthat first one right away.
Just get that less ticking, justget it gone.
Less ticking.
Yeah.
What uh what software are youguys using?
Is it Building, App Folio?
What was the software that youguys okay?
SPEAKER_01 (27:43):
Yeah, we use that folio.
We use that folio.
And the sweet part about that isthe person that had all those
units used at that folio too.
So app folio helped us move itfrom one right over into our
system, and it was pretty muchall set up, except for like a
few communication things.
So everything just went inthere, and we were up and
running lessons.
(28:04):
That's amazing.
SPEAKER_04 (28:05):
That is awesome.
What were what were some of thebig what were some of the big
challenges?
Because were you you guysweren't property managing prior
to that, right?
You were using third party.
So what were some of the biggestlearning lessons you learned
going from third party toin-house?
SPEAKER_01 (28:22):
Well, I'm gonna just um start with that, but we
started to jump into it a littlebit with our midterms, because
at the time nobody really wantedto pick up the midterm
management of it.
There wasn't a lot of people.
So we started to do it, andwe're like, okay, so when it
needs a plumber or there needs acall, then we get that funneled
through and there's there's a wemake a call.
(28:43):
So we got to dip our toes intoit a little bit.
SPEAKER_03 (28:46):
Do you want to jump in on um it's hard at first to
to understand, but it's uh it'sbecause it's that fear because
you're dealing with tenants andall the legalities of
everything, and just learn tohave faith, get yourself a
little bit of education on howto properly be a landlord and
following the state statutes, itreally becomes easy as you keep
(29:06):
doing it, as with anything.
When you first do it, it's hard,but as you keep doing it becomes
more and more, you know, simple.
It's you know, and and even fromthe like Shannon was saying,
from the maintenance standpoint,I can do certain things, but I
just know where my level ofcutoff is that I need to bring
in the special trades andwhatnot for people who are
licensed in that situation.
(29:26):
So it's really just figuring outwhat you can do with that
process and then leaving it toyour who's to take care of the
rest of it.
And it's really not thatdifficult after you after you do
it.
And it's because you have ifthere are your properties, you
take a lot of pride in yourproperties at that point.
SPEAKER_01 (29:44):
So that's what makes it even easier, is because yeah,
and a lot's automated, so a lotof the requests come in
automated.
We've already fielded out like alot of the answers, so he can
troubleshoot or get that right.
I mean, it can just simplifyeven the least team problem.
SPEAKER_04 (30:00):
Really, what about that?
That to me, as I think about it,I'm like, man, I would hate to
have to like show you knowvacant units and like screen
tenants.
And I do some of it with likerent-to-own.
I do all my own rent-to-ownmanagements.
Like I found those to be adifferent type of tenant,
typically, than a long-termtenant.
They're pretty easy to manage.
Like they take pride in itbecause that they view it as
their own house, kind of asituation.
(30:21):
What like for me, like again,I'm like sitting here going, I
wouldn't want to do that.
How are you guys managing thatvacancy process, the the
releasing process, the marketingpiece of it?
Like, is that all built in andpretty automated?
How are you guys managing thator how are you guys doing that?
unknown (30:37):
Yeah.
SPEAKER_01 (30:38):
Yeah, so that's that's my lane.
Um, so you know, I can build thetemplates right out into app
folio, but when I have anopening, we just have like a
marketing description that goeson one, and I literally it the
the app folio knows when that itis available for rent.
And I can go in the vacanciesand I put post to website, post
to website, uh, post tointernet.
(31:00):
And when I post to internet, itgoes out to like, I don't know,
20 to 50 sites.
So it automatically isn'tapartment.com and and Zillow and
all of those things.
So the description just goesout.
And then people, as they'reinterested, they fill out a
guest card and it comes in.
We have a VA that will filterthose.
So um there's a letter thatautomatically goes out.
So it says, you know, hey,thanks for your interest.
(31:22):
Here's our minimum requirements,you know, some income stuff and
different things like that.
So they know a personinterested, like, oh, I don't
even qualify, or maybe I should.
So because we want people not towaste money on an application.
So once we have that, then itsays, tell us more about you, so
we get a little bit more like aminimum like credit and uh score
and income and that.
(31:42):
And then if they meet thoseminimum qualifications, uh
showing can be automatically setup.
Um, for instance, I've got, andthen we kind of do it like we've
got somebody working on one ofour turns right now, and so I
have somebody that wants to seea property.
We're gonna set that up whilesomebody's in that property and
to kind of go see it.
If Scott's in an area, I kind ofknow what we can do.
(32:04):
We have a couple cleaners thatare willing to do showings, so
we just make it pretty easy.
SPEAKER_04 (32:08):
So you guys are having someone physically there,
you aren't at the full virtualshowing model yet, or is that
something in the cards for you,or is that not really in what
you guys want to do?
unknown (32:17):
So we haven't moved on.
SPEAKER_01 (32:19):
I don't know.
We haven't moved that way.
We don't, we're pretty luckyactually, we don't have a lot of
openings usually at you know, sothey people are pretty happy.
And I mean, when we have I mean,sometimes maybe we have two or
three at at a time, but thenit's a while before we have some
other openings.
SPEAKER_03 (32:37):
Good stuff though.
The other nice part about it toois that it with the automation,
if we do have a potential tenantthat wants to see it, they're
gonna get a text a couple hoursbeforehand just to say, hey, are
you actually gonna show up?
So that really saves a lot oftime for us of driving out to
somewhere and then we get aworst getting ghosted.
SPEAKER_02 (32:58):
Yeah.
SPEAKER_04 (32:58):
Yeah.
Yeah.
Yeah.
Can we are you guys okay if wetalk some numbers on this thing?
Are you guys okay sharing somenumbers?
All right, let's talk about ithere.
Let's talk.
I'm gonna pull out my old phonehere and we're gonna do some
math.
I this is my favorite part.
Let's talk.
What did what did we buy thisbad boy for?
And I think it was sellerfinance, right?
SPEAKER_01 (33:20):
Yeah, yeah.
Yeah, we did a link credit forit.
So uh just under six million.
SPEAKER_04 (33:29):
And what did you guys have to put down on it?
A goosey?
SPEAKER_02 (33:38):
A goosey.
SPEAKER_04 (33:39):
Oh my goodness, I love it.
Okay, my chat GPT is notloading.
I'm just gonna do the numbers onthis thing on chat.
It's not loaded.
Come on, chat.
Um okay, so a goosey, all right.
When did we when did we becomeprofitable?
Like what was year one T12?
Did we make money in year one orwere we oh yeah.
SPEAKER_01 (34:02):
Um so the first year, what we did was we kind of
we moved it out so that at leastthe deal made the 10%, like we
said, with property management.
So um we were getting that, andthen um year one, which would
have been so January of 2023, Itold Scott, just give me six
months and uh I think we can getyou out of your job.
(34:25):
So we were able to raise rentsabout eighty, seven hundred
dollars a month um by June orJuly.
So six months later.
Yeah.
And then um that's between themanagement and the raising the
rents that allowed him to leavehis job.
SPEAKER_04 (34:44):
Oh, here we go.
Okay, I have it now.
All right.
So well, hold on, real quick.
8,700, do you know what the caprate is on that on that
property?
What did it did it appraise outor have you guys had to do that
at all?
SPEAKER_01 (34:57):
Uh we haven't we no, we didn't have to do any of
that.
We worked well, we had someappraisals.
I don't know.
SPEAKER_03 (35:04):
There were some appraisals that were done prior
to our closing on it, just tokind of get some concrete
numbers.
SPEAKER_01 (35:10):
But some were already in mid-financing and
such.
SPEAKER_04 (35:13):
I would guess it's probably what a seven right now
it'd be like a seven cap, maybe.
Yeah.
So for those out there that arelike, what is Corey talking
about?
What is a seven cap?
So cap rate is how commercialproperties are valued, different
than comparable sales.
They look at comparable sales,what did they trade for on a
basically rate of return on yourcash?
(35:36):
So if Scott and Shannon had paidsix million cash for this
property, they and let's say,you know, they would look at the
net operating income and theywould say, okay, we would expect
you would get about a 7% returnon your money every year if you
paid complete cash for theproperty.
So that's how they valuecommercial real estate.
But what's really cool aboutcommercial real estate is they
(35:56):
forced a lot of appreciationhere.
So I don't know what the NOI waswhen they bought it, the net
operating income when theybought it.
So I don't know if they overpaidat the quote unquote overpaid at
the time based on a cap rate,but again, 0% down, that's hard
to beat, especially if it'sgonna be profitable year one.
But they increased it 8,700bucks.
So let's just say that the valuewas six million when they bought
it.
That's what the cap rate wouldsay, that's what the NOI would
(36:19):
say.
If we take$8,700 increase in NOIat a seven cap, what value
increase is that?
Let's take a look and see howmuch equity did they create,
guys.
Here it is.
Oh, it's running thecalculation.
Here we go.
Quick, pretty quick.
Okay, total value increase.
(36:41):
Oh, that's$87,000,$124,000 amonth.
So we would have to multiplythat by 12.
Do that annually.
That's gonna be over a milliondollars, guys.
For those of you out there notreal mathematicians,$1.4
million.
You guys increase the equity byby increasing the rents and the
the value or$8,700 a monthcreated$1.491 million dollars.
unknown (37:07):
Can we do a wait there's more?
SPEAKER_01 (37:08):
Can we do a wait there's more?
SPEAKER_04 (37:10):
I love wait there's more.
Call now.
SPEAKER_01 (37:15):
So to to know the the value when we bought it, we
were at like I think it was like5.3 or something like that.
Or five, just to just so youknow that we did because we did
a 60-month contract, we did takea we did pay a future price, and
we were okay with that.
Um, because we knew based on apercentage of increase.
So then the second year we didit, we raised the rents like
(37:36):
$4,500 more a month.
And now we're now we're in yearthree, and we are on track to be
at almost three thousanddollars.
SPEAKER_04 (37:44):
So another roughly one and a half million bucks of
value, give or take, 300 grandish.
SPEAKER_01 (37:49):
Yeah, but six, so we're about yeah, sixteen
thousand dollars.
SPEAKER_04 (37:52):
So five point three was the value at purchase.
You increase it, let's just callit two and a half million just
to be conservative, right?
So now you've got basically twomillion in equity in that thing,
not counting the debt pay downin that process either, right?
So are you guys paying debtdown?
Is this an interest-only loan?
Like, what does that look likeon the seller finance?
(38:13):
Nope, we're paying debt down.
What is the AMP schedule thatyou guys set up with the seller
finance?
Because that's the cool partabout seller finance.
You can kind of make it whereveryou want, right?
SPEAKER_01 (38:22):
You're gonna just okay.
So it's on a 25-yearamateurization at a 2.38
percent.
SPEAKER_04 (38:31):
Oh my gosh.
I'm so jealous right now.
I want that deal.
Can I buy that deal from youafter a 2.5%?
That is insane, you guys.
SPEAKER_01 (38:43):
No, but we stretched it out, and see that was the
thing.
We weren't afraid to pay.
Why wouldn't you?
That's a great deal.
So it made it an amazing deal,right?
It made, and that's why I saidit took us about six months to
figure it out because it was awin-win.
You know, the seller felt likeit was a win because we we were
willing to pay more money thananybody else would have if we
(39:03):
would he would have been able tosell it right at that time.
We're like, yeah, we'll give youmore money.
Can we stretch it out and thenwe take a lower percent?
And that's how we made the dealwork.
So do not be afraid to getcreative on things.
Oh, that's an awesome.
SPEAKER_04 (39:16):
This is a great story about how you can make
creative finance work for bothparties, right?
Like that seller got what hewanted, he's not managing that
now.
He can go focus on the storagestuff and grow that whole thing.
He's still making a fixed returnevery month, like he's still
getting quote unquote cash flowevery month without having to
deal with tenants, vacancies,leaseups, all that stuff.
He's just got mailbox money nowcoming in.
(39:37):
And then at the end, he's gonnaget a big old fat payout when
you guys go refinance thisthing.
So let's say you are at what isthat?
What did we say?
About eight million in value,probably.
SPEAKER_03 (39:51):
Probably at that point.
At the end of the contract.
SPEAKER_01 (39:55):
Yeah, because I did it, I looked at it, really
analyzed it at year two, and wehad already surpassed or we're
at or surpassed the values thatwe agreed to pay for.
So um, yeah, it is.
SPEAKER_04 (40:07):
So you guys are at, let's just call it eight, we'll
call it eight million of value,right?
Is this a you said it was afive-year 60-month balloon?
Okay, so that means for theaudience out there that doesn't
know what that means, that meansScott and Shannon have five
years to pay this to do thisamazing interest rate, and then
they have to refinance or justpay cash to pay it off.
Most people are gonna refinancethat chunk of cash, right?
(40:29):
But that means at refi, if theyget a lender to give them 80% of
the value, they're gonna be ableto get a new loan for 6.4
million.
They're gonna pay off the sellerthe six million minus any
principal that they've alreadypaid.
So I don't know, call it fiveand a half million just for fun.
So that means they're gonna geta check at ReFi for like 900
(40:50):
grand, and that is tax freeunless they sell it.
Huh, you guys, this is amazing.
A million bucks, basically, inyour pocket, tax-free.
I mean, this is so cool.
I love this.
SPEAKER_01 (41:06):
Yeah.
SPEAKER_03 (41:06):
Yep.
SPEAKER_01 (41:07):
Yeah, and we are like planning ahead.
The other thing when you askedabout like not overbuying, not
planning, not whatever, we'replanning ahead for years four
and five.
Any rent increase is going to beum basically something that
really won't exist when we re-fibecause we know that the
interest rates are not that low.
So um, so don't overextend,don't overlive what what you
(41:32):
are.
You have to plan for the deal towork in the end to be able to
re-fire it.
SPEAKER_04 (41:36):
You guys may look at it and say, you know what, at
the current interest rate, wedon't want that extra 900 grand
because you got to pay intereston it, right?
Um, but the question I alwayslook at is can you make more
than call it six and a halfpercent?
This would probably be theinterest rate or six percent,
you know, because it'sstabilized now.
Can you make more than sixpercent on that nine hundred
grand somewhere else?
And if you can, then thequestion is why wouldn't you
(41:59):
pull that 900 grand and goinvest it somewhere at higher
than six percent?
So that's kind of the question Ilook at when I'm refinancing
properties or those things.
I'm like, hey, it's tax-free.
Can I take this tax-free cashand then grow the tax-free cash
somewhere else if I can?
Yes.
If I'm like, I'm done, I'mchilling, I I got my I'm living
a good life, I don't need to godo anything else, then I'm
(42:20):
probably I might not take that900 grand.
I might just let, you know, letthe cash flow be higher on my
rental and and let those tenantsstart paying that debt down on
that lower amount and let thatbaby ride and maybe pull a line
of credit or something on thatmoney, and that way at least I
still have access to the equity,but I don't have to use it, you
know.
So there's some different leversyou can pull.
But either way, creating 900grand of equity tax-free is
(42:44):
awesome.
SPEAKER_03 (42:47):
That that wasn't happening in my YouTube job at
all.
SPEAKER_04 (42:50):
Little tough to do that at the hey boss, could you
give me a$900,000 uh tax-freeraise after five years?
No, okay.
Well, see you later.
I'm gonna do real estate fulltime.
That is awesome.
Okay, so that I'm glad we brokethe numbers down on that for the
audience.
That is the power of realestate, guys.
And that is the power ofShannon.
You talk about networking.
I mean, that all came fromnetworking and asking and having
(43:13):
conversations and telling peoplewhat you want.
You know, that's that's why wego to these events locally.
It's not necessarily becauseyou're gonna land a big deal,
but you're one connection awayfrom a life-changing deal.
SPEAKER_00 (43:25):
Exactly.
SPEAKER_03 (43:26):
Yeah, and and that's it's doing all that work does
create those relationships, andpeople can say, Oh, you guys are
so lucky, you know, you got thatdeal.
Well, it's really not luck.
It took a lot of time and effortgoing to all the RIA meetings
and meeting people and spendingthat time and staying late and
building up those relationshipsto eventually have something
(43:46):
like that.
That's not luck, that's hardwork to get to that point, and
something's gonna hit, andeverybody is gonna get that one
thing that might make thebiggest difference in their life
because they spent the time togo to the meetings and build
those relationships up withpeople.
It's the key, the number one keyto success.
SPEAKER_04 (44:03):
And and the education piece, too.
You guys also invested ineducation.
You get you joined ourmastermind group, that wasn't
free, right?
You had to travel for that too,a couple times a year down to
Florida and and be involved.
You have to take time away.
You have to, you know, you gottainvest in yourself in this too.
It's not uh you know, likeyou're just gonna just magically
wake up one day and all of asudden now you've got 55 doors
(44:24):
and you're like, I don't knowhow I got here, huh?
Lucky me, right?
Like it yeah, a lot led up tothat.
Yeah, for sure.
SPEAKER_01 (44:33):
Yeah, and and luckily, like Scott was like, we
gotta invest in ourselves andput money, you know, into this.
And it was kind of like the kidsare going off to college, and
he's like, So let's invest inourselves.
And so thankfully for him,because that it does, he's like,
We're gonna go so much fasterwhen we're around other people
doing the same thing.
SPEAKER_04 (44:51):
It's so true.
Yep, yep.
You're doing it on your own.
It's a little bit, it's a slowgo, it's a solo, sad kind of
existence.
It's much more fun to do itaround people that are doing it
alongside you and with you, andyou can share in the struggles
and you can laugh about the hardtimes, you can celebrate the
good times.
Like, I'm I'm seriously likethat.
Made my day running thosenumbers, you guys.
Like, I'm not joking with you.
(45:11):
Like, I'm almost in tears overhere because that is like super,
super cool.
So I'm super excited for youguys.
That also led though, let's talkabout now how this stuff leads.
Because now, you guys, as ofyesterday, I think, when I saw
you, like I heard some news.
Uh, I'm not on the book, I'm notin the book much anymore, but I
think you guys uh announced thison the Facebook.
Uh, but talk a little bit aboutkind of a new sounds like kind
(45:35):
of a fun passion project nowthat you guys are doing.
unknown (45:38):
Yeah.
SPEAKER_00 (45:39):
Yeah.
Do you wanna meet that?
SPEAKER_03 (45:42):
I think yeah.
I love how she tells the story.
So it's I want her to know.
SPEAKER_01 (45:46):
Oh no, that feels like pressure.
Um we I don't know, when youkind of think about like other
things and investing in otherstuff, you kind of just start
looking at different things.
And we have um a closedrestaurant that is near us that
um we just rode by and we'relike, can somebody please put
something in there and openthat?
You know, and nobody did.
(46:07):
So that's for two years.
For two years.
So finally one day we're like,you know what?
Um, maybe we should look intoit, you know, because at the
very least, the land is worthgreat, and we could even change
it to residential and and dothat.
But anyway, we just kept um, Idon't know, we thought, well,
let's just go look at it andsee.
And um, God just really openedthe doors on this one.
(46:30):
We were like, I don't know, ifwe're barking up the wrong tree,
you know, close the doors, God,let us know.
And he just kept opening thedoors.
And somebody was like, Hey, weknow somebody that's looking to
expand into Green Bay and wantsto do this uh coffee house
bistro kind of thing, and so wemet with them and they are
amazing people, and um very Godcentered, and they're both
(46:51):
ordained.
SPEAKER_04 (46:52):
Oh my goodness, and it's just yeah, probably pretty
trustworthy.
SPEAKER_01 (46:56):
So, which works with the other yeah, yeah, and and
friends of good friends of ours.
And so we were like, all right,and then there was just other um
people brought into us, and sowe also wanted to because it has
a full bar, we wanted to beable, and then it's got a
beautiful venue view overlookingthe bay with the sunsets, and we
want to be able to offer it forweddings uh because we have a
(47:20):
child that is getting married,and we realize how expensive
these wedding venues are.
So we're like, we can offer asmaller wedding venue at maybe
half the cost and opportunityfor people.
So we were looking at thesemulti-revenue streams, which our
banker really loves.
So if you can come up withsomething like that, then that
kind of makes it more enticingfor them.
(47:42):
And we were able to pull somecommission, have catering
commission and all differentthings, but it's gonna be a fun
place.
SPEAKER_03 (47:49):
And we're not, you know, restaurant people, we
don't know how to run arestaurant, so it's really again
finding your who's.
So we bought the building sothat we could allow somebody
else to come there in there andtake care of making that magic
happen.
And it's just been, you know, agreat process, and we're really
excited about this to be able tobring community together here,
and this is what our area thatwe live in really needs right
(48:12):
now.
And we just put a lot ofall-stars in place with this
whole process that have justmade it so amazing, and that's
awesome.
SPEAKER_01 (48:20):
So, we want to do some fun special events, and we
want people to tell us what theywant there, so just to bring the
community together.
SPEAKER_04 (48:27):
I love it.
Well, if you guys are listeningto this and you are in or around
or traveling through northeastWisconsin, is that what we would
call it?
Headed towards Door County,that's where you're you're gonna
want to pay attention.
And I'll let you guys maybeshare how they could get more
information about it because Idon't I don't know where you're
at and what you can say at thispoint yet, because it's still
(48:49):
fresh and just closed, and Iknow there's a lot of moving
parts right now.
So how would it be if somebodywants to kind of you know, hey,
how do I come check this placeout or get any information about
the the wedding venue thing orany of that kind of stuff?
Like, what's the best way forthem to stay in tune with what
you guys are doing?
SPEAKER_01 (49:06):
Yeah, so right now we um the new name is called Bay
House Landing.
I love it.
So we're on Bay Settlement Road,yep.
So, and it's so it's on BaySettlement Road, Bay House
Landing, it has overlook of thebay, and it is literally where
the settlers landed.
So we are calling it Bay HouseLanding.
We're on Facebook, Instagram,and we'll have a website with
all of those same names.
SPEAKER_04 (49:28):
Sweet.
Well, I'm super excited for thattoo.
We used to live on the east sideof Green Bay, and we were
talking last night, and I'mlike, you're right, there is
like no coffee or good breakfastplace over here.
Like, you gotta go to like thewest side or like downtown Green
Bay or something like that.
So that'll be a really cool,like much needed uh niche
filled.
And the smaller venue weddingthing, I think, is another thing
too.
Like, not I think everybody'seither got the 250 plus, you
(49:49):
know, type thing, or or like thelittle 20 20-person backyard
wedding setup, but thatintermediate mid-ground one, I
think, is uh another cool, coolniche you guys are filling here.
SPEAKER_03 (50:03):
Yeah, we're excited.
It's gonna be awesome.
SPEAKER_04 (50:06):
Yeah, that's awesome.
Well, guys, this has beenamazing.
I know you guys have a meetingcoming up here soon, and so we
got to get to that.
But before we let you guys roll,we always end with a kind of a
fun question.
Favorite place to visit inWisconsin or Wisconsin
tradition?
The reason we asked thisquestion is we have people out
of state that listen to this,and we, you know, they're
thinking of investing inWisconsin or you know, coming to
(50:27):
check it out, and they're justlike, oh, what is this?
Is it all cows and brats andbeers, or like, what is it?
So give people a little bit outthere what you know if you've
got a couple favorite traditionsor spots to visit.
SPEAKER_00 (50:39):
Do you want to go first?
SPEAKER_03 (50:40):
I mean, if you're coming to Wisconsin, make sure
you come on a Friday because goto a supper club for a Friday
night fish fry.
You can't beat it.
Yeah, get held hostage at the atthe bar when you come.
Even though there's a lot ofseats available, but it's a
great time to just talk withpeople and get your old
fashioned and then have anamazing meal and you know, just
(51:03):
break bread together.
It's yeah, it's a beautifulyear.
SPEAKER_04 (51:06):
That's awesome.
Shannon, do you have anythingdifferent to add to that?
SPEAKER_01 (51:10):
Well, I was gonna add the old fashions, but um, I
don't know, there's just so manycool places.
I would say you'd have to getcheese curds either up at
Dykesville Bowl or you have togo to Joe Roars for um good
burgers.
Yeah.
Yeah, those are a couplefavorite places.
SPEAKER_04 (51:24):
Yeah, one of my favorites is having some captain
diets in Scott and Shannon's andthen crashing in Scott and
Shannon's basement because Scottoverserved me.
That's one of my favoritetraditions.
Yeah.
SPEAKER_03 (51:33):
That's a great memory.
SPEAKER_04 (51:35):
I love it.
Me too.
unknown (51:37):
That has happened.
SPEAKER_04 (51:38):
Yes, that has happened.
Yes, yes, it has.
Well, guys, this has beenawesome.
I've I've learned a ton.
I'm so excited for you guys andso happy for all of the progress
you guys have made and for likewhere you guys are at.
You guys are just such anamazing example, I think, for
people to look up to you and tofollow.
And so these guys are great.
Follow, find them, connect withthem on their website.
Um, any last thoughts for theaudience out here, guys?
(51:59):
Any last words?
SPEAKER_03 (52:01):
Uh I would just say that if if you have any
questions, feel free to reachout to us because we didn't get
here on our own.
We had lots of people thatlifted us up, had an abundance
mindset, and we feel the sameway.
You know, you need to bringpeople, you know, help the next
one in line because there'splenty out there for everybody
to be successful.
(52:22):
And we just want to give back atthis point to make sure that
everybody can lead a journeylike we've had.
SPEAKER_04 (52:27):
Awesome.
Very cool.
Well, guys, if you want to getsome some connections from us as
well, and you're not ready tojoin a buyer's list, you're
still just dipping your toe in,and you're not really sure what
this whole real estate investingthing is, you've been listening
to the podcast a little bit, yougot some questions, you can just
go to the website and also go tothe contact us form, and that
will not add you to the buyer'slist, but that will uh submit
some information so we can reachout to you and at least see
(52:49):
where you're at, try to help youin your process, figure out if
this real estate thing's for youor not.
Totally free.
Just something we enjoy doing,kind of like Scott said, we like
giving back, we like helpingpeople, and um we're here to do
that.
So, guys, until the nextepisode, thank you guys so much
for being on here.
Thank you for tuning in.
If you got some value, share theepisode, please.
We're also looking to bring upour ratings and reviews on the
(53:10):
different platforms.
So if you've listened to anepisode and you got some value
out of it, leaving us a fivestar review, or if you're a
YouTuber, commenting on theYouTube apparently helps us.
So please comment and likeinteract with it.
I guess that helps us in thealgorithms.
So please do that as well.
And we will keep bringing youguys amazing guests like Scott
and Shannon, and uh appreciateyou guys tuning in.
(53:31):
We'll see you on the nextepisode.
SPEAKER_03 (53:33):
Okay, have a good one.
Hey everybody, we are back with another amazing
episode.
Well, I don't even know if it'samazing yet, but I think it's
gonna be an amazing episode withtwo of my favorite people in
real estate investing who I'llintroduce here in a minute.
But I'm your host, CoreyRaymond.
And uh before we get started,like I do every week, we are
talking about our sponsor,Wisconsin Discount Properties.
Uh, every Monday morning, youguys can get deals put right in
(00:23):
your inbox, right on your telly.
We'll shoot you little texts,let you know what's going on.
And uh, we're doing anywherefrom two to six deals a week,
seems to be about the average.
So if you are looking for dealflow and you're not on our list,
you are missing out.
Easy way to get on.
We don't even charge you.
You just go to WisconsinDiscount Properties.com, plug
your information in, get addedto the list, and then one of us
(00:45):
will give you a call, Reese,Connor, myself, and have a
little conversation, get to knowyou, find out your goals, try to
help connect you to some of theresources you'll need and all
that sort of stuff.
Whether you're out of state orin state, doesn't matter.
We've got deals for you, andwe're here to help you out.
So go to Wisconsin DiscountProperties.com, get on the list,
and uh start getting some dealssent to you right away.
With that, let me bring in someOGs in real estate as I call
(01:08):
them now, which I don't know ifthey ever thought they'd be OGs,
but I have Scott and ShannonRichardson.
What's going on, guys?
SPEAKER_03 (01:18):
Well just living our dream, man.
It's uh been an amazing journeysince we first met you back in
gosh, what 2020?
SPEAKER_02 (01:27):
Yeah, early 2020.
SPEAKER_03 (01:30):
Back when Corey was like in the trenches doing his
thing, like at the at the toursand just pumping people up to
get some properties and look atthe growth, like for both both
of us.
You guys have just exploded.
SPEAKER_04 (01:45):
It is crazy.
I love having theseconversations that think back to
like the old days, right?
Like the humble beginnings,right?
Of the grind and what it waslike back then.
I miss some of that.
Like I do.
I miss the I miss so for thoseof you guys that are listening.
Scott's Scott mentioned thetours.
Uh in our wholesale process, weused to do, we call them
inspection periods, and we wouldallow people to come for about
an hour.
I think we would do like an hourwindow.
(02:06):
You could show up at any point,you could bring your contractor,
you could do whatever youwanted, and walk through the
properties.
And uh, for me, it was alwaysfun.
Like I always got I got a blast.
Sometimes we'd even bringcoolers and hang out and have
some drinks in the driveway ifthe place was vacant, you know,
and we would have some fun timeswith it.
And then COVID happened, and uhwe realized that was a pretty
big vulnerability in ourprocess.
(02:26):
You couldn't have 20 peoplewalking through a house anymore.
And so we we pivoted and we wentto this system that now we've
we've done.
And actually, most people wefound, even though they miss the
social aspect, they prefer theconvenience of this new process.
So we send out an email, youclick on a picture, we've got an
inspection report in there nowthat we pay for.
It's a third-party inspection,you got a video walkthrough.
(02:50):
And for people who are, I guess,more less emotional about the
properties and more logicalabout the properties, it's it's
a really nice process.
They just can my goal was alwaysI wanted you to be able to sit
on the can and instead oflooking at Facebook, you could
evaluate a property and make 20,30 grand and you know, that
15-minute window.
So that's what that's ourprocess.
(03:10):
But the old process was thetours, man.
And that's when you guysstarted.
Was that was that your firstremind us again, how take us
back.
How did you guys get into realestate?
Was that when you got started?
Was 2020?
SPEAKER_01 (03:23):
Um, it was pretty close to that.
Um, before that, we were lookingfor something that would pull us
out of our jobs but give us andfigure out how to give us some
passive income.
And we had a few ideas, but wereally wanted something that we
could work together on.
And um, you know, it's alwaysfun to work in real estate and
live with your partner, youknow, like live together.
So we didn't know what we weregetting ourselves into, but um,
(03:44):
our goal was just to be able tobuild up that passive income.
Yeah, so that's awesome.
SPEAKER_04 (03:48):
And you guys accomplished that goal.
What year did you guys gofull-time real estate?
SPEAKER_01 (03:57):
Um, well as you know, but nobody else does.
Like part of uh what we did waswe actually joined the launch
mastermind that you and Carriedid in early 2020, and then I
was able to leave my job in uhMarch of 2021.
SPEAKER_03 (04:14):
So just a year after, and then yeah, and then I
left in August of 2023.
So way ahead of our goals.
Like we had a goal, a five-yearplan for me, and I was like,
Yep, that's probably right ontrack.
SPEAKER_04 (04:26):
No, three years, and I think we were probably pushing
you that you could have probablydone it earlier.
I think you were hanging ontothe blankie a little bit there,
right?
SPEAKER_03 (04:38):
Yeah, I think it was in 20, probably late 21, early
22 that you were talking about,just calling her quits.
But yeah, we kept pushingforward just to make sure that
we have your blanket, that'sright.
SPEAKER_04 (04:51):
That was my job was to push you and make you think a
little bit differently than whatwhat you were capable of
thinking, right?
Yeah, for sure.
That's exciting.
So talk a little bit.
What uh let's go back to thatfirst purchase.
I remember it like it wasyesterday.
I tell you, I tell your guys'story to so many people that are
like in fact, last night uh atthe time we're recording this,
(05:13):
we had a meeting, the REIsuccess meeting.
Great meeting.
We had an attorney there who wason fire last night.
He was hilarious and tons ofknowledge.
And then we had our uh ourresident accountant, Jake
Calvert's there talking about alot of a lot of tax implications
of some of the LLSC structuresand things like that.
But before that, I met with aguy who's bought a few deals,
(05:33):
but he's looking to buy somemore deals, and he was like, Ah,
I'm looking at some of thesedeals, and you know, this one
says it's ARV is 210.
How do I know I'm gonna get 210?
And what do I need to do to getto 210?
I said, Well, you might not evenhave to do 210.
I said, do the Scott and Shannonmethod, just get in and out of
the deal.
So tell it, take us back to thatfirst deal because this is one
of my favorite stories that Itell people all the time.
SPEAKER_00 (05:57):
Do I tell it?
SPEAKER_03 (05:58):
Uh, sure.
So we we you know, we werestruggling, as every new
investor does, it's like, ohman, I just want to get a deal.
I want to get a deal, and you'rejust spinning your wheels, like,
how am I gonna get this?
And then this uh single familyproperty came up on your
wholesale list in this was inJune of 2020.
Yeah, and um it was a beautifulhome.
(06:21):
Um, you know, we walked throughit and it was like, okay, we're
putting an offer in on thisthing, and my gosh, finally one
hit.
And we walked through it, andit's like, man, this will be so
fun to flip, and we put all thishere and this here, and then
Carrie and Corey came in andwalked through the property with
us, and they're like, don't evenbother with that.
(06:41):
This thing is just a clean,clean it up, take the 70s out of
it, and let's put it back on themarket.
And we're like, sure, we shoulddo that.
Oh, yeah, this will be you'llmake money on this one.
So we put faith in that, wetrusted the process.
And I took a week off from myW-2 and we just cleaned this
thing up, pulled all the stuffout of it, yeah, and we had it
on the market within a week ofactually closing.
SPEAKER_01 (07:04):
Three and a half days later, we had pictures
taken.
Yeah, yeah, we just reallypulled the 70s out and pulled a
lot of stuff out of it andreally cleaned it up.
SPEAKER_03 (07:13):
But and then we had an offer on it within what a
week.
A couple days.
I will less than a week, sure.
And which is awesome.
SPEAKER_04 (07:22):
And like I always think about the time.
This is where my point with thestory I always use it as like,
right?
And this is the same point thatCarrie and I made to you guys.
Like, you guys could have gonein and you could have done all
the cool stuff.
And I know Shannon, you werekind of mad because you were
like, I just want to get in andlike do creative stuff and like
make it cute.
And we're like, you could, Imean, sure, you can.
But in our professional opinion,I think you could get in and out
(07:44):
of this thing relatively quicklyand make up make a few bucks,
take that money, roll it intothe next one, and keep going.
And uh, and and you guys weregood students, you listened and
it worked out.
And uh, I would have been reallymad if it didn't work.
Uh you know, that's always therisky part of giving that
advice.
But it worked out, but thebackup plan was you could always
go do the full reno if if itdidn't sell, right?
(08:05):
And that was kind of our gameplan with you guys is like do
this quick one, see if you canmake some money quick, get in
and out of it.
If it doesn't work, you alwayscan take it to that next phase
of the rehab, right?
SPEAKER_03 (08:17):
Right, yeah, I think that's a really good point that
you make because when you dothese deals, you need to have
multiple exit strategies.
And we knew that we could dothis, and if it didn't work, we
always have that next exitstrategy.
And even if that, we if itdidn't sell, we had the
opportunity to rent it and thenjust let it sit while we cash
flowed it, and then thepossibility and changes of
(08:38):
market that it would sell evenat a higher price.
So having exit strategies is sokey when you're and you guys
bought it, right?
SPEAKER_04 (08:44):
You know, that's the other piece of that too, Scott.
Is like you guys paid us a nicefee, which is great, appreciate
that.
Kids can eat again.
Um, but then you guys had enoughmargin in there to be able to
have that flexibility, right?
Like, hey, we still we can dothis minimum re rehab, we'll
still make money at this minimumrehab.
That doesn't work, we still havethis spread to go here.
That doesn't work, we couldstill cash flow it because the
(09:06):
numbers still make sense there.
Now that in this market, I'mseeing less and less of that
third option being there ofbeing able to cash flow a rental
now if you go full rental onsome of these things, just where
the price of the market is andwhere interest rates are
compared to where they were in2020.
Um, but you still had twostrategies, right?
Like minimum flip, or we know wecan sell it if we go full full
(09:28):
tilt, and we'll still eithereven break even on your first
flip is still a great learningexperience and yeah, and I think
just being open to beingcreative and being able to pivot
is key.
SPEAKER_01 (09:41):
So for instance, um we kind of laugh because a few
months later we ended up gettingour first duplex so that we when
we went to um the launchmasterby, we could say, hey, we
had a couple doors, right?
And then on the way home, wewere so jazzed up that we rode
by um a triplex that you guyshad listed.
And an hour later we put in aduplex.
(10:01):
But one of the things, RB, putit put in an offer.
Sorry, put in an offer on thetriplex.
And one of the things that wedidn't really do the best due
diligence was we were like, oh,there's one furnace, so that
means three units, guess what?
But that was around the timewe're like, okay, how can we
still make this happen?
And so what we did was werenovated one unit first and
(10:23):
then put furniture in.
And um, we started doing somecorporate housing, which is
midterm housing, people call itmidterm.
Um, and then we ended up doing asecond one.
So then this house really cashflowed.
Like it went from okay, it'sjust marginal to now we got
$4,500 a month cash flow.
So really being able to likejust change and pivot is.
SPEAKER_04 (10:45):
And I love that because I see, like for me, when
I started, I was very much likea Burr investor only.
And I only I'm like, I we me andCarrie were like, we are never
flipping properties ever.
And then like our second deal,we ended up flipping a four
unit.
And I'm like, part of me wasreally sad.
I was like, no, four units go.
We did all the work, no.
(11:05):
But at the time, my goal was toget out of my corporate
corporate job, and I was like,I'll do it through the Burr
method.
That's when I started this.
I'm like 200 bucks a door.
I know I only need like ahundred doors and we'll be
living on a beach, you know,whatever.
And then yeah, and then and thenwe well, then I we did our first
burr, and I was like kind ofdepressed because I was like,
(11:26):
man, that's a lot of work to gettwo doors.
Like it's gonna take a long timeto get to this goal.
And then we did a flip, and Iwas like, huh, pivot, going back
to your point, Shannon.
Let's pivot and let's just wedon't want to flip necessarily,
but let's just flip out ofnecessity as many properties as
we can to build up our bankaccount where I can get rid of
(11:47):
my blankie at the time, right?
It's got a corporate job and theconsistent income and and leave
this thing quicker than maybe wethought we could.
And so, you know, that pivotingpiece I think is really
important.
I think so many people get stuckin like I I'm doing this and
this is all I have to do whenthey're starting out.
I think it's great later on.
Like later on, you can kind oflike get like figure out what
you like, and you've done a fewdifferent things and you can
(12:08):
kind of get in a certain lane.
Um, but having that wideexperience, I think also helps
you out of a bad buy.
Like we don't always makeperfect buys, but having that
experience of doing all thesedifferent things, now you can,
like you said, you can be like,hey, let's do this midterm thing
on this one because we you knowwe didn't we didn't plan for
this furnace.
Now we can now oh now look, it'sa winner.
It was a dud.
(12:29):
Yeah, now it's a winner.
SPEAKER_01 (12:33):
Well, and we burred into that one too, so that was
awesome about it.
And then 18 months later, so wewanted a house down by you.
We wanted a house in Florida.
So 18 months later, we wereable, we call them long-term
flips.
So we were able to sell that,and then that paid for all of
our down payment basically andgot us our Florida house.
(12:54):
So I mean, right?
SPEAKER_04 (12:58):
Do you guys still have the Florida house?
Yeah, okay, cool.
Are you guys Airbnb in thatstill?
Okay.
SPEAKER_01 (13:06):
We are, yeah, we are, and we um, you know, we
have some maintenance we have todo the month of January down
there, you know.
SPEAKER_00 (13:14):
And a couple other yeah, that's really tough.
SPEAKER_04 (13:18):
Yeah, you have to you have to go to Florida to do
that, which is really rough inthe winter time here to get out
of Wisconsin and go to Floridaand do maintenance.
Terrible, yeah.
So what else?
What else?
So, okay, so you guys wentthere, you bought you guys had
what five was that if I'mcounting correctly five units
under management at the time,sold the three, bought the
(13:40):
Florida, so now you're down tothree.
SPEAKER_01 (13:42):
So you had the duplex and then um no, in
between before we sold it, yeah.
We added um we added a few otherduplexes.
Um, I think we're up to like13-ish at that point.
SPEAKER_04 (13:55):
Okay.
So you parlay you parlayed thethree unit into a Florida
vacation house flash, probablyCash Floyd Airbnb, if I had to
assume.
And then you were able to keepall these other doors.
Then you guys went into a biggeracquisition, correct?
Talk talk to us about that,because I think this is a really
(14:15):
cool.
Like you started out, you kindof got your feet wet, you you
did a bunch of different stuff,and then you hit you kind of hit
a bigger, a bigger deal here.
Talk a little bit about thatone.
unknown (14:25):
Yeah.
SPEAKER_01 (14:26):
Yeah.
For us, so the way we were kindof getting some of the
properties was by implementingthe the midterm strategy, which
was a really good one at thetime because it was after COVID
and a high need for that.
Um, I wouldn't necessarily saythat's the best way to go now.
However, um, for us, our biggestneedle mover has always been
(14:47):
networking and developingrelationships.
And um, you know, in fact, thatwhen we were looking at we want
to do real estate, the first twopeople that we were told to meet
was you and Tony Breuer.
So we went to our first meeting,we met them, and then Tony
introduced us to a few people,you know, and you did, and and
then our network just keptexpanding.
And so um, we tried doing a fewdeals with somebody that um they
(15:13):
had the money and we didn't, andit never kind of worked out.
But one day then that personreached out and said, Hey, I'm
looking at do moving intostorage and new building
development.
Are you interested in any ofthese properties?
And I said, Yeah, I I would likethem all.
Um, and it came down to like 55doors, and so yeah, so I
(15:35):
thought, well, why not ask?
Right?
I'll I think no, right?
And my the answer back was okay,let's figure out how to do it.
And so we spent probably aboutsix months trying to structure
and make a deal that was awin-win for both of us.
SPEAKER_04 (15:50):
Awesome.
So you guys had 13-ish doors, isthat right?
From before, is that what wesaid?
And then you bam hit a big 55banger.
What was that like?
Because I I also was talking toanother guy last night who's
newer to the game, he's got afew doors, and I saw this from
some people in launch, actually.
So we have we had Logan Rankincome in, who for those of you in
the real estate space, if youdon't know Logan, you got to go
(16:12):
start following him wherever he,you know, LinkedIn, whatever
other socials he's on.
The guy's a freaking genius,unicorn.
But we were good friends withLogan.
He came in every time we didlaunch and would do a little
presentation.
And some of the folks in yourclass, as I'll call it, of
launch, they I think they got alittle distracted with going
after the big the big dogs,right?
And it sunk them.
(16:33):
Like, I don't, I mean, some ofthose people aren't in real
estate anymore because they werehitting base hit after base hit
after base hit, they were doingreally, really well, and then
all of a sudden they took theireyes off of that and went for
something like what you guyspicked up, and it worked out for
you guys.
For them, the ones that theywent after, they did it did not
work out.
So, going from a a a niceportfolio, 13 units, to adding
(16:56):
55.
Talk about that transition.
What were some of the painpoints of that?
What were some of the struggles?
What did you guys learn throughthat?
And what has been the outcomenow, a couple years later?
SPEAKER_00 (17:07):
I'm gonna say one word before I let you go on, but
I'm gonna say systems.
SPEAKER_03 (17:11):
Yeah.
SPEAKER_00 (17:12):
So go ahead.
SPEAKER_03 (17:13):
Yeah, so when you have that big of a portfolio,
the whole thing is like, how amI gonna manage this?
And sitting down and andutilizing the current system
that this person was using madesuch a huge difference, which
rolls into what Shannon justsaid is systems.
It's a program that basically isproviding you three employees
(17:35):
because of how the programworks.
So it does so much of theautomation for you, and you
don't you don't have to do asmuch with it.
And the other thing that wedecided to do is bring in
property management to us to runit instead of having somebody
else do it.
That's not without its you know,scared.
SPEAKER_00 (17:54):
We needed to do that actually to cash flow anything
in the beginning.
SPEAKER_03 (17:58):
So it was like out of necessity to make the numbers
work.
SPEAKER_00 (18:00):
So we were like, Okay, right, yeah, so that was a
change, yep, and then roledelineation, right?
SPEAKER_03 (18:07):
Yeah, so it's that's the biggest thing.
So when we talk aboutrelationships with um business
and with marriage, the biggestthing to make your marriage work
well in business together isrole delineation, and that way,
as they say, stay in your lane,bro.
Because once you startinterweaving those things,
(18:27):
uh-huh heads start knocking, andit makes it very difficult.
So we've done really well withsitting down with our the way
that we did it was we did a likeit, love it, tolerate it method.
We put down all the jobs thatneeded to be done with it.
Went back and we, you know,individually circled.
Okay, this is what I can do.
I hate this, so I don't want todo it.
SPEAKER_04 (18:47):
Came together, and that's that is gold, people.
Go back and re-listen to thatpart if you're a couple or you
have a business partner becausethat is gold right there.
unknown (18:56):
We did it so simply on paper.
SPEAKER_01 (18:57):
We did it so simply on paper.
When we left, actually launched.
We stayed a couple extra days.
We drove down to Bonita Springsand we did a like it, hate it,
tolerate it.
So it's on paper.
We wrote every roll down and wejust circled, and that's how we
initially separated.
It makes life a lot moreharmonious.
SPEAKER_03 (19:15):
It does, yeah.
I mean, it's not it's not thatyou won't have some of those
tensions, but overall, it's sominimal, and you know what each
other is doing, and it's justtrusting the process at that
point.
Yeah, for sure.
SPEAKER_04 (19:26):
And what I've noticed when Carrie and I do
that too in our businesses islike if I start overstepping,
and because it's always methat's overstepping, it's never
her.
Like, she's not like, How can Iget into doing sales?
Like, and that's not herpersonality, it's always me,
like just being like a hawk,like, hey, ah, you do this.
She's like, Hey, she can justremind me, and I I give her
permission like ahead of time.
(19:47):
Like, hey, if I'm stepping inyour lane, like you have
permission to kind of smack menicely and say, Hey, you're in
my buddy, you're in my lane, andthen it's like a oh shit, like,
yes, we agreed to this.
All right, yep.
I'll step back over here andstay, you know, like it, but it
it is healthy.
SPEAKER_00 (20:04):
And I keep keeping it light and being like, because
you'll actually say that to me.
Stay in your lane, bro.
SPEAKER_04 (20:12):
Yeah, yeah, yeah.
Shannon, you and I are probablymore similar personalities, and
Scott and Carrie have alwaysbeen like more aligned in their
personality types, and so yeah,that's funny that you're having
the same experience I'm having.
Of uh yeah, stay in your lane,bro.
That's so good.
The other thing that I wouldgive uh couples out there,
business partners, a littlenugget that was really helpful
for us as a couple was readingRocket Fuel.
(20:35):
So, Rocket Fuel, if you guyshaven't read that book, awesome
book.
If you're an entrepreneur andyou're like me and reading is a
challenge for you, you canlisten to it on Audible, or your
integrator type, your Scott oryour Carrie, could read it and
then highlight the parts thatyou should read, and then you
only have to read a certain fewpages.
Like that's what Carrie did.
She's like, You can just need toread these two chapters, and I
(20:56):
think you'll understand where myfrustration is.
And I was like, Okay, I read.
I was like, Oh my gosh, thismakes so much sense.
So, or you can run it throughChat GPT.
I'm sure Chat GPT now could justtell you the highlights of
rocket fuel and you could takethe bullet points and implement.
Yeah.
SPEAKER_01 (21:11):
Yeah.
And you know, when you said thatbefore, that when you asked what
was the other reason forsuccess, is he had said, okay,
now we we have enough that wehave to get it really rolling
and doing it well, versusbecause you and I would be like,
Okay, there's all these otheropportunities.
I struggled for a long time tobe like, okay, I love the
acquisition game, I love pullingthem in, doing all that.
(21:34):
I struggled just to be like,okay, we've got to get this
foundation set and solid beforewe can go to the next thing.
And um, he was always rightthere to remind me, nope, we're
getting in it.
Because there was like, oh, Iwanted this resort at one point
that was for sale.
He's like, fine, you go run theresort by yourself.
I'm not in.
And so then I thought, yeah,yeah.
You're like, damn, you're such aparty pooper, Scott.
SPEAKER_04 (21:56):
Come on, man.
Such a drag, dude.
SPEAKER_03 (22:01):
Just my philosophy.
Like, you have to maximize whatyou currently have because
there's so much more that youcan do with what your current
portfolio is.
So before you start moving offin the other directions,
maximize that so that you knowyou're getting the best cash
flow that you can, that yoursystem is the best for that
particular property.
And that is huge in beingsuccessful in a business.
SPEAKER_01 (22:22):
Yeah.
And we can yeah, and we didn'twant to be spending 70, 80 hours
all the you know, in this oncewe got it built, you know, which
we had to in the beginning.
We're pulling out cabinetsinstead of going boating or
whatever it was, but um, youknow, now we have it pretty well
oiled that we're probably eachworking like 10 hours a week on
the real estate part, you know.
(22:42):
It's yeah, and it allows a lotof time for free time.
That is so cool.
SPEAKER_04 (22:46):
I think uh going back to a couple things I want
to touch back on with this forthe audience here.
You guys picked up 55 units.
I mean, that's you're literallybuying a business, right?
It's not it is real estate, butit's a business at that point.
Uh, you got if you don't knowhow to run a that particular
business, and then you're justlike, ah, it'll run itself, and
then you go buy anotherbusiness, you're just piling on
(23:08):
a disaster.
And I think that's probably whatwe saw with some of the other
folks in your class.
Like they got distracted, theybought a bunch of stuff, just
kind of set it, forget it, moveon to the next thing, go and buy
actual like a literal business,don't know how to run that.
Now they've got disasters justhappening everywhere, it
compounds and it overwhelms, andbefore you know it, you're
underwater and you're sunk,right?
And I think you guys did areally wise thing there to just
(23:30):
sit back, let's get this babyrolling.
You know, that's the hard partfor me, too, Shannon.
Again, very similar personalitytypes.
I'm very much like, all right, Iif that you put it on a like
love it thing, I hate managementstuff.
I hate sitting and getting intotedious detail stuff.
Like, I just want to go do bigvision, big idea, big stuff, let
somebody else run it.
(23:50):
But then like, I gotta have thewho's to do it, right?
And you know, you've got a whothere in Scott that you know is
wise enough to be like, allright, we need to sit down and
pump the brakes and get thisbaby oiled up.
Now we can go do somethinglater, Shannon.
We'll go buy something later,which we'll get into in a
second, where that led to.
SPEAKER_03 (24:07):
But well, that's I mean, I love that you brought
that up about the who's becausethat's another key nugget in
real estate, is so many peoplefeel like they can do it
themselves.
And oh yeah, I mean, I d I'm notgonna hire a guy to do this
rehab for me.
I can put this in, the scoring,and I can do all this stuff.
(24:28):
And it takes them so long, andtheir holding cost becomes so
much that you could have broughtin a professional to take care
of it, less stress for you, lessmoney paid out in the long run,
and you're getting cash flowthat much faster because of the
sure.
SPEAKER_04 (24:40):
We I just that was another conversation with that
same gentleman I shared yourguy's story with last night, is
is handy, right?
You can get in and do the work.
And I said, you know, that's thetrap I think you get into when
you start is you need the money.
Usually you're not in afinancial financial abundance
position when you're gettinginto real estate, you're getting
into real estate to createfinancial abundance for
yourself, right?
And so I think like if you arehandy, you immediately go to
(25:02):
like the pride, the moneysavings justification for it,
and you can really get yourselfin that that trap of doing all
of the work all the time.
And then you've like all of asudden your wife wants to leave
you and your kids don't know whoyou are because you work a
full-time job, and then nightsand weekends you're there
working on the property to make20 grand.
When you could have hired thatout, you could have made 15
(25:22):
grand a lot quicker.
Yes, you made less, but yourprofit per hour was way higher.
You're now you could now youcould start to scale, do
multiple projects at the sametime, and now you could be
making$30,000,$40,000.
Yes, you're making less perdeal, but you can scale it and
you can have your schedule back.
Like, yes, you're gonna getcalls, you're gonna have to go
(25:43):
run and do stuff, but you're notthere having to do the work on
the properties all the time.
And there's I think there's abalance.
Like sometimes when you'restarting out, like we talk
about, it is probably good toget in if you're handy and do a
few of the things so youunderstand the process a little
bit and you know sort of how togo through that.
Um, I am not handy, so that Iwould get zero value from doing
(26:04):
that, probably.
I am I my time is better spentfiguring out how to find the
right people to do it than forme to get in there.
But for some people, I thinkthat there is some value, but
it's a trap.
SPEAKER_03 (26:16):
And you think about um anything ever happened, like
take two scenarios, like beingable to go away for four or five
weeks.
If you have a team in place thatare your all-stars that can take
care of the issues with thebusiness while you're gone, you
don't have to worry about it.
And then what happens if youhave some type of a medical
issue or whatever and you andyou can't physically do
something?
(26:36):
Having that team in place allowsyour business to continue to
succeed.
If you're the one having to doit all, yeah, you're you're just
sending up yourself.
SPEAKER_04 (26:44):
I see that actually in a lot of the uh professions.
Like, I have a buddy up here inDoor County who's a
chiropractor.
Oddly enough, I asked him to gogolfing and he's like, I can't,
my back's uh I threw my back outor something.
And I was like, dude, how areyou gonna keep doing your
business?
Like you, like dentist,chiropractors, like it's you.
You you something happens toyou, you got nothing coming in
(27:05):
then.
So, same same thing in realestate.
If you're in there swinginghammers and it's you doing all
the work, you throw your backout, or you know, you your
shoulder goes or something, whatare you gonna do?
I mean, you're stuck then nowyou and then the cost is every
day.
It's not sold.
Your holding costs are ticking,ticket, tick, tick, tick.
(27:28):
Well, I hate that.
Me too.
That's right.
That's why I told you to sellthat first one right away.
Just get that less ticking, justget it gone.
Less ticking.
Yeah.
What uh what software are youguys using?
Is it Building, App Folio?
What was the software that youguys okay?
SPEAKER_01 (27:43):
Yeah, we use that folio.
We use that folio.
And the sweet part about that isthe person that had all those
units used at that folio too.
So app folio helped us move itfrom one right over into our
system, and it was pretty muchall set up, except for like a
few communication things.
So everything just went inthere, and we were up and
running lessons.
(28:04):
That's amazing.
SPEAKER_04 (28:05):
That is awesome.
What were what were some of thebig what were some of the big
challenges?
Because were you you guysweren't property managing prior
to that, right?
You were using third party.
So what were some of the biggestlearning lessons you learned
going from third party toin-house?
SPEAKER_01 (28:22):
Well, I'm gonna just um start with that, but we
started to jump into it a littlebit with our midterms, because
at the time nobody really wantedto pick up the midterm
management of it.
There wasn't a lot of people.
So we started to do it, andwe're like, okay, so when it
needs a plumber or there needs acall, then we get that funneled
through and there's there's a wemake a call.
(28:43):
So we got to dip our toes intoit a little bit.
SPEAKER_03 (28:46):
Do you want to jump in on um it's hard at first to
to understand, but it's uh it'sbecause it's that fear because
you're dealing with tenants andall the legalities of
everything, and just learn tohave faith, get yourself a
little bit of education on howto properly be a landlord and
following the state statutes, itreally becomes easy as you keep
(29:06):
doing it, as with anything.
When you first do it, it's hard,but as you keep doing it becomes
more and more, you know, simple.
It's you know, and and even fromthe like Shannon was saying,
from the maintenance standpoint,I can do certain things, but I
just know where my level ofcutoff is that I need to bring
in the special trades andwhatnot for people who are
licensed in that situation.
(29:26):
So it's really just figuring outwhat you can do with that
process and then leaving it toyour who's to take care of the
rest of it.
And it's really not thatdifficult after you after you do
it.
And it's because you have ifthere are your properties, you
take a lot of pride in yourproperties at that point.
SPEAKER_01 (29:44):
So that's what makes it even easier, is because yeah,
and a lot's automated, so a lotof the requests come in
automated.
We've already fielded out like alot of the answers, so he can
troubleshoot or get that right.
I mean, it can just simplifyeven the least team problem.
SPEAKER_04 (30:00):
Really, what about that?
That to me, as I think about it,I'm like, man, I would hate to
have to like show you knowvacant units and like screen
tenants.
And I do some of it with likerent-to-own.
I do all my own rent-to-ownmanagements.
Like I found those to be adifferent type of tenant,
typically, than a long-termtenant.
They're pretty easy to manage.
Like they take pride in itbecause that they view it as
their own house, kind of asituation.
(30:21):
What like for me, like again,I'm like sitting here going, I
wouldn't want to do that.
How are you guys managing thatvacancy process, the the
releasing process, the marketingpiece of it?
Like, is that all built in andpretty automated?
How are you guys managing thator how are you guys doing that?
unknown (30:37):
Yeah.
SPEAKER_01 (30:38):
Yeah, so that's that's my lane.
Um, so you know, I can build thetemplates right out into app
folio, but when I have anopening, we just have like a
marketing description that goeson one, and I literally it the
the app folio knows when that itis available for rent.
And I can go in the vacanciesand I put post to website, post
to website, uh, post tointernet.
(31:00):
And when I post to internet, itgoes out to like, I don't know,
20 to 50 sites.
So it automatically isn'tapartment.com and and Zillow and
all of those things.
So the description just goesout.
And then people, as they'reinterested, they fill out a
guest card and it comes in.
We have a VA that will filterthose.
So um there's a letter thatautomatically goes out.
So it says, you know, hey,thanks for your interest.
(31:22):
Here's our minimum requirements,you know, some income stuff and
different things like that.
So they know a personinterested, like, oh, I don't
even qualify, or maybe I should.
So because we want people not towaste money on an application.
So once we have that, then itsays, tell us more about you, so
we get a little bit more like aminimum like credit and uh score
and income and that.
(31:42):
And then if they meet thoseminimum qualifications, uh
showing can be automatically setup.
Um, for instance, I've got, andthen we kind of do it like we've
got somebody working on one ofour turns right now, and so I
have somebody that wants to seea property.
We're gonna set that up whilesomebody's in that property and
to kind of go see it.
If Scott's in an area, I kind ofknow what we can do.
(32:04):
We have a couple cleaners thatare willing to do showings, so
we just make it pretty easy.
SPEAKER_04 (32:08):
So you guys are having someone physically there,
you aren't at the full virtualshowing model yet, or is that
something in the cards for you,or is that not really in what
you guys want to do?
unknown (32:17):
So we haven't moved on.
SPEAKER_01 (32:19):
I don't know.
We haven't moved that way.
We don't, we're pretty luckyactually, we don't have a lot of
openings usually at you know, sothey people are pretty happy.
And I mean, when we have I mean,sometimes maybe we have two or
three at at a time, but thenit's a while before we have some
other openings.
SPEAKER_03 (32:37):
Good stuff though.
The other nice part about it toois that it with the automation,
if we do have a potential tenantthat wants to see it, they're
gonna get a text a couple hoursbeforehand just to say, hey, are
you actually gonna show up?
So that really saves a lot oftime for us of driving out to
somewhere and then we get aworst getting ghosted.
SPEAKER_02 (32:58):
Yeah.
SPEAKER_04 (32:58):
Yeah.
Yeah.
Yeah.
Can we are you guys okay if wetalk some numbers on this thing?
Are you guys okay sharing somenumbers?
All right, let's talk about ithere.
Let's talk.
I'm gonna pull out my old phonehere and we're gonna do some
math.
I this is my favorite part.
Let's talk.
What did what did we buy thisbad boy for?
And I think it was sellerfinance, right?
SPEAKER_01 (33:20):
Yeah, yeah.
Yeah, we did a link credit forit.
So uh just under six million.
SPEAKER_04 (33:29):
And what did you guys have to put down on it?
A goosey?
SPEAKER_02 (33:38):
A goosey.
SPEAKER_04 (33:39):
Oh my goodness, I love it.
Okay, my chat GPT is notloading.
I'm just gonna do the numbers onthis thing on chat.
It's not loaded.
Come on, chat.
Um okay, so a goosey, all right.
When did we when did we becomeprofitable?
Like what was year one T12?
Did we make money in year one orwere we oh yeah.
SPEAKER_01 (34:02):
Um so the first year, what we did was we kind of
we moved it out so that at leastthe deal made the 10%, like we
said, with property management.
So um we were getting that, andthen um year one, which would
have been so January of 2023, Itold Scott, just give me six
months and uh I think we can getyou out of your job.
(34:25):
So we were able to raise rentsabout eighty, seven hundred
dollars a month um by June orJuly.
So six months later.
Yeah.
And then um that's between themanagement and the raising the
rents that allowed him to leavehis job.
SPEAKER_04 (34:44):
Oh, here we go.
Okay, I have it now.
All right.
So well, hold on, real quick.
8,700, do you know what the caprate is on that on that
property?
What did it did it appraise outor have you guys had to do that
at all?
SPEAKER_01 (34:57):
Uh we haven't we no, we didn't have to do any of
that.
We worked well, we had someappraisals.
I don't know.
SPEAKER_03 (35:04):
There were some appraisals that were done prior
to our closing on it, just tokind of get some concrete
numbers.
SPEAKER_01 (35:10):
But some were already in mid-financing and
such.
SPEAKER_04 (35:13):
I would guess it's probably what a seven right now
it'd be like a seven cap, maybe.
Yeah.
So for those out there that arelike, what is Corey talking
about?
What is a seven cap?
So cap rate is how commercialproperties are valued, different
than comparable sales.
They look at comparable sales,what did they trade for on a
basically rate of return on yourcash?
(35:36):
So if Scott and Shannon had paidsix million cash for this
property, they and let's say,you know, they would look at the
net operating income and theywould say, okay, we would expect
you would get about a 7% returnon your money every year if you
paid complete cash for theproperty.
So that's how they valuecommercial real estate.
But what's really cool aboutcommercial real estate is they
(35:56):
forced a lot of appreciationhere.
So I don't know what the NOI waswhen they bought it, the net
operating income when theybought it.
So I don't know if they overpaidat the quote unquote overpaid at
the time based on a cap rate,but again, 0% down, that's hard
to beat, especially if it'sgonna be profitable year one.
But they increased it 8,700bucks.
So let's just say that the valuewas six million when they bought
it.
That's what the cap rate wouldsay, that's what the NOI would
(36:19):
say.
If we take$8,700 increase in NOIat a seven cap, what value
increase is that?
Let's take a look and see howmuch equity did they create,
guys.
Here it is.
Oh, it's running thecalculation.
Here we go.
Quick, pretty quick.
Okay, total value increase.
(36:41):
Oh, that's$87,000,$124,000 amonth.
So we would have to multiplythat by 12.
Do that annually.
That's gonna be over a milliondollars, guys.
For those of you out there notreal mathematicians,$1.4
million.
You guys increase the equity byby increasing the rents and the
the value or$8,700 a monthcreated$1.491 million dollars.
unknown (37:07):
Can we do a wait there's more?
SPEAKER_01 (37:08):
Can we do a wait there's more?
SPEAKER_04 (37:10):
I love wait there's more.
Call now.
SPEAKER_01 (37:15):
So to to know the the value when we bought it, we
were at like I think it was like5.3 or something like that.
Or five, just to just so youknow that we did because we did
a 60-month contract, we did takea we did pay a future price, and
we were okay with that.
Um, because we knew based on apercentage of increase.
So then the second year we didit, we raised the rents like
(37:36):
$4,500 more a month.
And now we're now we're in yearthree, and we are on track to be
at almost three thousanddollars.
SPEAKER_04 (37:44):
So another roughly one and a half million bucks of
value, give or take, 300 grandish.
SPEAKER_01 (37:49):
Yeah, but six, so we're about yeah, sixteen
thousand dollars.
SPEAKER_04 (37:52):
So five point three was the value at purchase.
You increase it, let's just callit two and a half million just
to be conservative, right?
So now you've got basically twomillion in equity in that thing,
not counting the debt pay downin that process either, right?
So are you guys paying debtdown?
Is this an interest-only loan?
Like, what does that look likeon the seller finance?
(38:13):
Nope, we're paying debt down.
What is the AMP schedule thatyou guys set up with the seller
finance?
Because that's the cool partabout seller finance.
You can kind of make it whereveryou want, right?
SPEAKER_01 (38:22):
You're gonna just okay.
So it's on a 25-yearamateurization at a 2.38
percent.
SPEAKER_04 (38:31):
Oh my gosh.
I'm so jealous right now.
I want that deal.
Can I buy that deal from youafter a 2.5%?
That is insane, you guys.
SPEAKER_01 (38:43):
No, but we stretched it out, and see that was the
thing.
We weren't afraid to pay.
Why wouldn't you?
That's a great deal.
So it made it an amazing deal,right?
It made, and that's why I saidit took us about six months to
figure it out because it was awin-win.
You know, the seller felt likeit was a win because we we were
willing to pay more money thananybody else would have if we
(39:03):
would he would have been able tosell it right at that time.
We're like, yeah, we'll give youmore money.
Can we stretch it out and thenwe take a lower percent?
And that's how we made the dealwork.
So do not be afraid to getcreative on things.
Oh, that's an awesome.
SPEAKER_04 (39:16):
This is a great story about how you can make
creative finance work for bothparties, right?
Like that seller got what hewanted, he's not managing that
now.
He can go focus on the storagestuff and grow that whole thing.
He's still making a fixed returnevery month, like he's still
getting quote unquote cash flowevery month without having to
deal with tenants, vacancies,leaseups, all that stuff.
He's just got mailbox money nowcoming in.
(39:37):
And then at the end, he's gonnaget a big old fat payout when
you guys go refinance thisthing.
So let's say you are at what isthat?
What did we say?
About eight million in value,probably.
SPEAKER_03 (39:51):
Probably at that point.
At the end of the contract.
SPEAKER_01 (39:55):
Yeah, because I did it, I looked at it, really
analyzed it at year two, and wehad already surpassed or we're
at or surpassed the values thatwe agreed to pay for.
So um, yeah, it is.
SPEAKER_04 (40:07):
So you guys are at, let's just call it eight, we'll
call it eight million of value,right?
Is this a you said it was afive-year 60-month balloon?
Okay, so that means for theaudience out there that doesn't
know what that means, that meansScott and Shannon have five
years to pay this to do thisamazing interest rate, and then
they have to refinance or justpay cash to pay it off.
Most people are gonna refinancethat chunk of cash, right?
(40:29):
But that means at refi, if theyget a lender to give them 80% of
the value, they're gonna be ableto get a new loan for 6.4
million.
They're gonna pay off the sellerthe six million minus any
principal that they've alreadypaid.
So I don't know, call it fiveand a half million just for fun.
So that means they're gonna geta check at ReFi for like 900
(40:50):
grand, and that is tax freeunless they sell it.
Huh, you guys, this is amazing.
A million bucks, basically, inyour pocket, tax-free.
I mean, this is so cool.
I love this.
SPEAKER_01 (41:06):
Yeah.
SPEAKER_03 (41:06):
Yep.
SPEAKER_01 (41:07):
Yeah, and we are like planning ahead.
The other thing when you askedabout like not overbuying, not
planning, not whatever, we'replanning ahead for years four
and five.
Any rent increase is going to beum basically something that
really won't exist when we re-fibecause we know that the
interest rates are not that low.
So um, so don't overextend,don't overlive what what you
(41:32):
are.
You have to plan for the deal towork in the end to be able to
re-fire it.
SPEAKER_04 (41:36):
You guys may look at it and say, you know what, at
the current interest rate, wedon't want that extra 900 grand
because you got to pay intereston it, right?
Um, but the question I alwayslook at is can you make more
than call it six and a halfpercent?
This would probably be theinterest rate or six percent,
you know, because it'sstabilized now.
Can you make more than sixpercent on that nine hundred
grand somewhere else?
And if you can, then thequestion is why wouldn't you
(41:59):
pull that 900 grand and goinvest it somewhere at higher
than six percent?
So that's kind of the question Ilook at when I'm refinancing
properties or those things.
I'm like, hey, it's tax-free.
Can I take this tax-free cashand then grow the tax-free cash
somewhere else if I can?
Yes.
If I'm like, I'm done, I'mchilling, I I got my I'm living
a good life, I don't need to godo anything else, then I'm
(42:20):
probably I might not take that900 grand.
I might just let, you know, letthe cash flow be higher on my
rental and and let those tenantsstart paying that debt down on
that lower amount and let thatbaby ride and maybe pull a line
of credit or something on thatmoney, and that way at least I
still have access to the equity,but I don't have to use it, you
know.
So there's some different leversyou can pull.
But either way, creating 900grand of equity tax-free is
(42:44):
awesome.
SPEAKER_03 (42:47):
That that wasn't happening in my YouTube job at
all.
SPEAKER_04 (42:50):
Little tough to do that at the hey boss, could you
give me a$900,000 uh tax-freeraise after five years?
No, okay.
Well, see you later.
I'm gonna do real estate fulltime.
That is awesome.
Okay, so that I'm glad we brokethe numbers down on that for the
audience.
That is the power of realestate, guys.
And that is the power ofShannon.
You talk about networking.
I mean, that all came fromnetworking and asking and having
(43:13):
conversations and telling peoplewhat you want.
You know, that's that's why wego to these events locally.
It's not necessarily becauseyou're gonna land a big deal,
but you're one connection awayfrom a life-changing deal.
SPEAKER_00 (43:25):
Exactly.
SPEAKER_03 (43:26):
Yeah, and and that's it's doing all that work does
create those relationships, andpeople can say, Oh, you guys are
so lucky, you know, you got thatdeal.
Well, it's really not luck.
It took a lot of time and effortgoing to all the RIA meetings
and meeting people and spendingthat time and staying late and
building up those relationshipsto eventually have something
(43:46):
like that.
That's not luck, that's hardwork to get to that point, and
something's gonna hit, andeverybody is gonna get that one
thing that might make thebiggest difference in their life
because they spent the time togo to the meetings and build
those relationships up withpeople.
It's the key, the number one keyto success.
SPEAKER_04 (44:03):
And and the education piece, too.
You guys also invested ineducation.
You get you joined ourmastermind group, that wasn't
free, right?
You had to travel for that too,a couple times a year down to
Florida and and be involved.
You have to take time away.
You have to, you know, you gottainvest in yourself in this too.
It's not uh you know, likeyou're just gonna just magically
wake up one day and all of asudden now you've got 55 doors
(44:24):
and you're like, I don't knowhow I got here, huh?
Lucky me, right?
Like it yeah, a lot led up tothat.
Yeah, for sure.
SPEAKER_01 (44:33):
Yeah, and and luckily, like Scott was like, we
gotta invest in ourselves andput money, you know, into this.
And it was kind of like the kidsare going off to college, and
he's like, So let's invest inourselves.
And so thankfully for him,because that it does, he's like,
We're gonna go so much fasterwhen we're around other people
doing the same thing.
SPEAKER_04 (44:51):
It's so true.
Yep, yep.
You're doing it on your own.
It's a little bit, it's a slowgo, it's a solo, sad kind of
existence.
It's much more fun to do itaround people that are doing it
alongside you and with you, andyou can share in the struggles
and you can laugh about the hardtimes, you can celebrate the
good times.
Like, I'm I'm seriously likethat.
Made my day running thosenumbers, you guys.
Like, I'm not joking with you.
(45:11):
Like, I'm almost in tears overhere because that is like super,
super cool.
So I'm super excited for youguys.
That also led though, let's talkabout now how this stuff leads.
Because now, you guys, as ofyesterday, I think, when I saw
you, like I heard some news.
Uh, I'm not on the book, I'm notin the book much anymore, but I
think you guys uh announced thison the Facebook.
Uh, but talk a little bit aboutkind of a new sounds like kind
(45:35):
of a fun passion project nowthat you guys are doing.
unknown (45:38):
Yeah.
SPEAKER_00 (45:39):
Yeah.
Do you wanna meet that?
SPEAKER_03 (45:42):
I think yeah.
I love how she tells the story.
So it's I want her to know.
SPEAKER_01 (45:46):
Oh no, that feels like pressure.
Um we I don't know, when youkind of think about like other
things and investing in otherstuff, you kind of just start
looking at different things.
And we have um a closedrestaurant that is near us that
um we just rode by and we'relike, can somebody please put
something in there and openthat?
You know, and nobody did.
(46:07):
So that's for two years.
For two years.
So finally one day we're like,you know what?
Um, maybe we should look intoit, you know, because at the
very least, the land is worthgreat, and we could even change
it to residential and and dothat.
But anyway, we just kept um, Idon't know, we thought, well,
let's just go look at it andsee.
And um, God just really openedthe doors on this one.
(46:30):
We were like, I don't know, ifwe're barking up the wrong tree,
you know, close the doors, God,let us know.
And he just kept opening thedoors.
And somebody was like, Hey, weknow somebody that's looking to
expand into Green Bay and wantsto do this uh coffee house
bistro kind of thing, and so wemet with them and they are
amazing people, and um very Godcentered, and they're both
(46:51):
ordained.
SPEAKER_04 (46:52):
Oh my goodness, and it's just yeah, probably pretty
trustworthy.
SPEAKER_01 (46:56):
So, which works with the other yeah, yeah, and and
friends of good friends of ours.
And so we were like, all right,and then there was just other um
people brought into us, and sowe also wanted to because it has
a full bar, we wanted to beable, and then it's got a
beautiful venue view overlookingthe bay with the sunsets, and we
want to be able to offer it forweddings uh because we have a
(47:20):
child that is getting married,and we realize how expensive
these wedding venues are.
So we're like, we can offer asmaller wedding venue at maybe
half the cost and opportunityfor people.
So we were looking at thesemulti-revenue streams, which our
banker really loves.
So if you can come up withsomething like that, then that
kind of makes it more enticingfor them.
(47:42):
And we were able to pull somecommission, have catering
commission and all differentthings, but it's gonna be a fun
place.
SPEAKER_03 (47:49):
And we're not, you know, restaurant people, we
don't know how to run arestaurant, so it's really again
finding your who's.
So we bought the building sothat we could allow somebody
else to come there in there andtake care of making that magic
happen.
And it's just been, you know, agreat process, and we're really
excited about this to be able tobring community together here,
and this is what our area thatwe live in really needs right
(48:12):
now.
And we just put a lot ofall-stars in place with this
whole process that have justmade it so amazing, and that's
awesome.
SPEAKER_01 (48:20):
So, we want to do some fun special events, and we
want people to tell us what theywant there, so just to bring the
community together.
SPEAKER_04 (48:27):
I love it.
Well, if you guys are listeningto this and you are in or around
or traveling through northeastWisconsin, is that what we would
call it?
Headed towards Door County,that's where you're you're gonna
want to pay attention.
And I'll let you guys maybeshare how they could get more
information about it because Idon't I don't know where you're
at and what you can say at thispoint yet, because it's still
(48:49):
fresh and just closed, and Iknow there's a lot of moving
parts right now.
So how would it be if somebodywants to kind of you know, hey,
how do I come check this placeout or get any information about
the the wedding venue thing orany of that kind of stuff?
Like, what's the best way forthem to stay in tune with what
you guys are doing?
SPEAKER_01 (49:06):
Yeah, so right now we um the new name is called Bay
House Landing.
I love it.
So we're on Bay Settlement Road,yep.
So, and it's so it's on BaySettlement Road, Bay House
Landing, it has overlook of thebay, and it is literally where
the settlers landed.
So we are calling it Bay HouseLanding.
We're on Facebook, Instagram,and we'll have a website with
all of those same names.
SPEAKER_04 (49:28):
Sweet.
Well, I'm super excited for thattoo.
We used to live on the east sideof Green Bay, and we were
talking last night, and I'mlike, you're right, there is
like no coffee or good breakfastplace over here.
Like, you gotta go to like thewest side or like downtown Green
Bay or something like that.
So that'll be a really cool,like much needed uh niche
filled.
And the smaller venue weddingthing, I think, is another thing
too.
Like, not I think everybody'seither got the 250 plus, you
(49:49):
know, type thing, or or like thelittle 20 20-person backyard
wedding setup, but thatintermediate mid-ground one, I
think, is uh another cool, coolniche you guys are filling here.
SPEAKER_03 (50:03):
Yeah, we're excited.
It's gonna be awesome.
SPEAKER_04 (50:06):
Yeah, that's awesome.
Well, guys, this has beenamazing.
I know you guys have a meetingcoming up here soon, and so we
got to get to that.
But before we let you guys roll,we always end with a kind of a
fun question.
Favorite place to visit inWisconsin or Wisconsin
tradition?
The reason we asked thisquestion is we have people out
of state that listen to this,and we, you know, they're
thinking of investing inWisconsin or you know, coming to
(50:27):
check it out, and they're justlike, oh, what is this?
Is it all cows and brats andbeers, or like, what is it?
So give people a little bit outthere what you know if you've
got a couple favorite traditionsor spots to visit.
SPEAKER_00 (50:39):
Do you want to go first?
SPEAKER_03 (50:40):
I mean, if you're coming to Wisconsin, make sure
you come on a Friday because goto a supper club for a Friday
night fish fry.
You can't beat it.
Yeah, get held hostage at the atthe bar when you come.
Even though there's a lot ofseats available, but it's a
great time to just talk withpeople and get your old
fashioned and then have anamazing meal and you know, just
(51:03):
break bread together.
It's yeah, it's a beautifulyear.
SPEAKER_04 (51:06):
That's awesome.
Shannon, do you have anythingdifferent to add to that?
SPEAKER_01 (51:10):
Well, I was gonna add the old fashions, but um, I
don't know, there's just so manycool places.
I would say you'd have to getcheese curds either up at
Dykesville Bowl or you have togo to Joe Roars for um good
burgers.
Yeah.
Yeah, those are a couplefavorite places.
SPEAKER_04 (51:24):
Yeah, one of my favorites is having some captain
diets in Scott and Shannon's andthen crashing in Scott and
Shannon's basement because Scottoverserved me.
That's one of my favoritetraditions.
Yeah.
SPEAKER_03 (51:33):
That's a great memory.
SPEAKER_04 (51:35):
I love it.
Me too.
unknown (51:37):
That has happened.
SPEAKER_04 (51:38):
Yes, that has happened.
Yes, yes, it has.
Well, guys, this has beenawesome.
I've I've learned a ton.
I'm so excited for you guys andso happy for all of the progress
you guys have made and for likewhere you guys are at.
You guys are just such anamazing example, I think, for
people to look up to you and tofollow.
And so these guys are great.
Follow, find them, connect withthem on their website.
Um, any last thoughts for theaudience out here, guys?
(51:59):
Any last words?
SPEAKER_03 (52:01):
Uh I would just say that if if you have any
questions, feel free to reachout to us because we didn't get
here on our own.
We had lots of people thatlifted us up, had an abundance
mindset, and we feel the sameway.
You know, you need to bringpeople, you know, help the next
one in line because there'splenty out there for everybody
to be successful.
(52:22):
And we just want to give back atthis point to make sure that
everybody can lead a journeylike we've had.
SPEAKER_04 (52:27):
Awesome.
Very cool.
Well, guys, if you want to getsome some connections from us as
well, and you're not ready tojoin a buyer's list, you're
still just dipping your toe in,and you're not really sure what
this whole real estate investingthing is, you've been listening
to the podcast a little bit, yougot some questions, you can just
go to the website and also go tothe contact us form, and that
will not add you to the buyer'slist, but that will uh submit
some information so we can reachout to you and at least see
(52:49):
where you're at, try to help youin your process, figure out if
this real estate thing's for youor not.
Totally free.
Just something we enjoy doing,kind of like Scott said, we like
giving back, we like helpingpeople, and um we're here to do
that.
So, guys, until the nextepisode, thank you guys so much
for being on here.
Thank you for tuning in.
If you got some value, share theepisode, please.
We're also looking to bring upour ratings and reviews on the
(53:10):
different platforms.
So if you've listened to anepisode and you got some value
out of it, leaving us a fivestar review, or if you're a
YouTuber, commenting on theYouTube apparently helps us.
So please comment and likeinteract with it.
I guess that helps us in thealgorithms.
So please do that as well.
And we will keep bringing youguys amazing guests like Scott
and Shannon, and uh appreciateyou guys tuning in.
(53:31):
We'll see you on the nextepisode.
SPEAKER_03 (53:33):
Okay, have a good one.
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