Dave Pere: From Military Millionaire to Real Estate Overlord

Join us for a spirited conversation with Dave Pere, affectionately known as the "Military Millionaire," where we promise you’ll gain insights on financial freedom specifically tailored for service members and veterans. Laugh along with us as we navigate the quirks of aging and health, all while exploring the playful rebranding of Dave as “Overlord,” thanks to a little help from AI-generated text. Dive into Dave's fascinating journey in real estate, from his successful ventures in boutique hotels to an exciting property negotiation in St. Croix.

Our discussion takes an intriguing turn as we explore the transition from Airbnb properties to boutique hotel investments. Hear firsthand how we bring these projects to life, with roles in marketing, social media, and fundraising, as well as the perks of owning prime-location hotels. We’ll share some humorous moments from our recording, all while delving into the strategy behind syndication investments, the benefits of pooling funds, and tackling market challenges like rising interest rates.

Rounding out our chat, we reflect on personal goals, the balance of health, fatherhood, and the mission to support veterans in achieving financial freedom. We unveil ambitious plans to revolutionize banking for veterans and first responders, and highlight the importance of strategic investment decisions by drawing lessons from historical market phenomena like Tulip Mania. Whether it’s the thrill of real estate investing or the cautionary tales of speculative bubbles, we promise a lively and enlightening discussion you won’t want to miss.

Episode Transcript

Speaker 1 (00:03):
What's up you guys?
We're back.
We got the military millionaire, dave Paray, or Paray Paray,
paray, paray yeah, I didn't fuckthat up this time, it's all
good.
Back on one of our friends.
Two of the three of us, or twoof the four of us, are sick
right now, so bear with us as wecan't hear and can't talk.
So and we're just finishedtalking about our medical issues
and how we're falling apart aswe get older.

(00:24):
So, and we're just finishedtalking about our medical issues
and how we're falling apart aswe get older.
Great way to start the podcast.
So anybody who can relate to us, which is probably most of the
first responders and militaryguys, dave, thanks for being
back on here.
You're my favorite overlord.

Speaker 2 (00:35):
Can you just?

Speaker 1 (00:35):
give me a brief overview, like the 15 second
elevator pitch, of who you areagain and where you're coming
from.

Speaker 3 (00:42):
Yeah, you are again and where you're coming from.
Yeah uh, marine corps vet.
Uh, father comes with dad bodhelp service members and vets
achieve financial freedom, likesguns and cars and things that I
jumping off bridges into lakesand you know all the stupid shit
I was hoping you could youcould explain more, because I
was having a coughing fit.

Speaker 1 (01:03):
But that's okay, I'll jump back on now oh man, so the
overlord thing.
Um, anybody who's listening,like um dave was playing with
around with ai and he wastalking to chat gbt and this is
his story to tell.
So I'll let you, I'll let youtake it from there.

Speaker 3 (01:19):
Yeah well you know how gurus, like, whenever you
get podcast solicitations fromlike those services, they're
always like this guy's the bestoxygen breather and he, you know
, it's like.
It's just they're full of shit,like they just it's like.
So I was like dude, I wonder ifthey run these through ai and
just say like make this moredouchebag, make this more

(01:40):
professional, whatever.
So I took my bio and I ran itinto chat gpt and I was like
make this sound more douchey,make this more pretentious, make
it more hype, make it louder,make it more.
I did it like 15 times, justadded things and it came out
with I saved it somewhere, Iposted it on my Facebook but it
was like you are the overlord ofall things, military money,
like blah, blah, blah, blah,blah.
And I was like wait a minute, Iown.

(02:01):
But first off, everybody lovedit.
I thought it was hilarious.
But then I was like I do own myown business, like who says I
have to be the founder.
So I just changed my bio onlinkedin to overlord.
I bought I actually just tookit off because it's warm in here
.
I have a hoodie that has thebrand on the front and the back
of it says overlord across theback of it now.

Speaker 1 (02:21):
It's too funny so last time you were on here we
kind of touched on from start tofinish is start buying houses
when you're in the military.
You figured out that you couldlive cheaper, they could make
some money, and they startedbuying more and more and more
and started scaling up, andscaling up, and scaling up.
Last time we talked we I thinkyou were looking at boutique

(02:41):
hotels, right so where?
And I it was funny becausesomebody had sent me I think it
was a waterfront property inlike Florida or one of the
islands, and then I saw you postabout it.
I was like, let me see if thisguy actually buys this thing,
cause I'm going to come stay athis fricking.

Speaker 3 (02:57):
Island.
We are actually still goingback and forth with that guy.
We lost, we we got them down toa decent price.
And then somebody from londonthis was probably like in april
or no, mark, I don't know soearly earlier this year uh, two
of the three of us I wasn't ableto make it, but two of them
flew out there and looked at itand we went back and forth on

(03:17):
pricing and this, that and theother, and then someone from
london came in.
It was like like we were, wewere around like the eight to
nine million strike point, andsomeone from london came in.
It was like 12 mil cash and soit fell out.
And then, uh, they fell out ofcontract like four months later,
and so we're back at it.
We'll see what happens.
That, that thing I really wantto buy that, um, and what was it

(03:41):
?

Speaker 1 (03:41):
it was like 40 acres or something, something yeah,
can you refresh my memory?

Speaker 4 (03:45):
where was that bad boy?

Speaker 3 (03:46):
yeah, yeah this one is in saint croix.
It is the.
So this is uh, it's in saintcroix, so it's in the us virgin
islands.
It's the island next to thedominican republic and it is, uh
, 55 bungalows and then it haslike a tiki bar and a pool and a
hot tub and all that and awedding venue.
Um, and it has room to developlike another 28 bungalows or

(04:06):
it's zoned to like 700 units.
If you just demolished it andbuilt a resort one day not that
that's the plan but it basicallyowns its own like section of a
cove.
So there's like a, a bay, andI'd say two-thirds of it just
looks, according to google maps,just looks like a swamp, and
then we own the other third andthen there's like on the far end
of the bay, there's like two Imean probably like $5 million

(04:29):
plus homes built on the water.
So, other than those two, webasically have the whole bay and
it's got room to build and it'sit's already profitable.
But the guy who owns it, youknow he owns like three
properties in Costa Rica andhe's like I'm just torn between
these spaces.
What we're trying to do iswe're trying to negotiate a

(04:50):
lower strike point with leavinghim in his equity so that he can
still benefit on the upside ofthe property without having to,
you know, deal with the headacheof flying between two countries
, because that's really the onlyreason he's selling it's.
It's a cool property.
I mean I think it did like sixor seven hundred k and in
revenue from the tiki bar alonelast year.
But the problem is it's thebungalows are all cute like,

(05:13):
they all look good, but the like, when you, when you think of
like a beachfront resort, right,the photo everyone thinks of is
like the pool area out over thewater, like where everyone's
hanging out and partying andthat just looks like it's
straight out of the like 70s.
It's like the tiki bar is likea metal frame, like tarp tent
thing, you know, like a boyscout hut with like a bar under

(05:35):
it.
And then the pool is it's notugly, but like it's got a huge
amount of concrete all the wayaround.
And I'm like, dude, if youcould just turn the one wall
into an infinity wall or and putlike a hot tub there and make
the tiki bar like, at least looklike it was intentionally put
there.
Um, you know, I'm like.
And then you just you get acouple hot instagram chicks to

(05:55):
post about where they're staying.
You give them a free stay andbe like yo just instagram this
crap and it'll, it'll boost,because it's already like it's
not.
You wouldn't be buying itnegative so that all the work
would be cosmetic upside, whichI love, because the last one we
built was kind of the opposite,where it's just we can talk
about that one more, but it'slike run into the ground, not
terrible, but just uh, like it's, you know, just poorly managed.

(06:22):
I guess.
I guess for for sake of anyonewho understands hotel world, it
was owned by a Patel and if youknow the hotel world at all,
there's actually a Facebookgroup, hotel motel Patel,
because the Indian last name ofPatel is is just like that's
what they do.
They buy hotels.
I don't want to say they runthem into the ground, but what
they do is they.

Speaker 4 (06:40):
There's a whole podcast about how that came to
be.
I'd have to find it.
I think it's uh, by how thiswas built, or founders.
One of those two, I think, hasa whole like backstory to why
the patels are the namesynonymous with hotels in the
united states.
I need to check that outbecause it's actually kind of
interesting man like, yeah, Imean it's everywhere, like

(07:02):
they're.

Speaker 3 (07:02):
They're all over the place for sure, but they're like
.
Methodology is that they willbuy a place and they basically
move in and they act as thelive-in manager and they don't
run it into the ground.
But they don't do like cosmeticupdates.
They do, you know necessaryCapEx, like like water heaters
and stuff, and they keep it up,but they will not update
anything or modernize anything.
They don't do, uh, they don't.

(07:27):
Their systems are all like.
A lot of them are still likepen and paper, like their old
school system.
So this hotel you know whatwe'll take, this thing, for
example, like he bought it 20years ago, wrote it out until we
got there, at one point, whenwe were under contract, we did
like a you know a surprise visitand they had three employees on
a Saturday morning at 130 keyhotel.
So it's like you can't even,you know, turn the rooms, let

(07:49):
alone turn the rooms plusmaintenance, plus front desk,
plus, like it was just veryunder operated.
So there were a lot of reviewsabout it not being clean and
this, that and the other, andthen it didn't have a Google
presence, like it existed, butthere were like no, no reviews.
No, no, nothing.
There's no website tied to aGoogle presence.
It existed, but there were noreviews, no, nothing.
There's no website tied to theGoogle page.
The Google actually said it wastemporarily closed.

(08:10):
There's no social mediapresence at all.
The only thing on social mediaat all was a YouTube video of a
guy reviewing it who didn't evenend up staying there for the
night because the bathroom wasso dirty.
And there's no Expedia, nobookingscom, no, no, no third
party booking, no Airbnb, likejust nothing.

(08:31):
It was just you know.
Basically like if you drive byand see a vacancy sign, we're
here and so we bought it.
We're halfway through a threeand a half million dollar
renovation on it.
You know we turned all thebooking systems on and
overwhelmed the system to wherewe had to do 17 refunds the
first day.
So we turned them all back offtill we're done with renovation,
hired a bunch of new employeesand that one's gonna be sexy.
I'm hosting an event there inFebruary.
But that's kind of why I gotinto the.

(08:51):
Well, it's really.
I got into the boutique hotelspace because a really good
friend of mine needed helppulling the final straws of the
deal together and I was like,well, I can do your marketing I
can do your social media, I canraise a million dollars to help
you with it.
You know, like, let me comehelp.
So I was bugging him and whenhe finally realized he was going
to need a little bit ofassistance, he let me in and the

(09:11):
reason was I'd seen how well heoperated these.
I love Airbnbs, but you can'tscale them and you have the risk
of you know regulation, and youdon't have that with a hotel
because it's zoned for acommercial hotel.
If anything, you're the reasonthey're regulating airbnbs, uh,
and it has all the laws of scale.
But then also, if it's in acool location I get to go visit.
So like this one's two milesoutside the smoky mountain

(09:33):
national park, and I have gonethere three times this year,
took my son for 10 days doesn'tcost me a penny to stay there.
It's super cool.
So if we bought this one in stcroix, I'm like, oh no, I have
to go on a work trip to thebeach for an entire month again
terrible, it's great.

Speaker 1 (09:49):
Let me ask you a question.
Then let me let me give onestat and then let me ask you a
question.
So years ago I was looking atthe standard for the hotel.
Turnovers and linens are adaily turnover after between
guests, but the uh, the umcomforters are a monthly wash.
I thought that was disgusting.
This is a couple of years ago.
I was just looking up.
I couldn't find this stat rightnow but I was like man, if you
go into some hotels, like theirstandards are.

Speaker 4 (10:13):
Yeah, I can tell you, ever since getting in the fire
service, I will sleep in mytruck before I sleep in like a
hotel.
It's less than 100 bucksprobably.

Speaker 2 (10:21):
I mean.

Speaker 4 (10:22):
I know that's like location dependent, but like I
can tell you right now, if itsays $49, motel six, kiss my ass
, I'm going to keep going it hasnot a chance.

Speaker 1 (10:33):
I mean they don't even watch that, they just
pressure wash that thing we callthem no tells motels, and then
we used to have one this wasyears ago on New York Avenue in
DC, where it was paid by thehour, and I was like, ugh God,
you can't pay me to stay there.

Speaker 4 (10:52):
So I mean this is back during the 80s and 90s,
during the crack wars.
I think we've all kind ofdabbled in Airbnb and just think
about how much faster you wentthrough stuff like bath
towelsware, bedding, I mean I Iwould be shocked if some of that
stuff doesn't have to getreplaced, not just cleaned and
repaired and whatnot, but likeliterally just replaced every

(11:14):
six months or whatever the casemay be, because I can't imagine
how many towels they must loseon the like.
Just the cost of doing business.
Factor well, especially if thechick who doesn't understand
you're not supposed to sleep infactor well, especially if you
get the chick who doesn'tunderstand.

Speaker 3 (11:25):
You're not supposed to sleep in your makeup, that's
you get like one.

Speaker 4 (11:30):
My wife doesn't wear makeup.

Speaker 3 (11:32):
There you go yeah, well, I've had.
I had a girl stay once at myhouse when I did airbnb and when
she left my white sheets werebrown and I was like what in the
world?
And it was just like faceimprint and I'm like dude, I
didn't even know this was athing, but like holy crap.

Speaker 1 (11:49):
But if you've been in the military, or if you share
barracks, or if you share like afirehouse with somebody.
Like you realize, some of thesedudes that we work with, and
some of these ladies too, arefilthy.

Speaker 2 (12:00):
They are not sanitary people.

Speaker 1 (12:02):
So when, like the old comment used to to be like you
need to clean the firehouse likeit was your own house, I was
like man, how about we clean itbetter than some of these
people's houses?
Because some of these people'shouses I've been doing they're
nasty yeah, yeah, yeah so isthis dave is this?

Speaker 4 (12:15):
I um?
Would this be a purchase onyour own partner?
Are you looking to do a fund orhow?
How does it look to take downfunds like just under 10 million
bucks?

Speaker 3 (12:26):
yeah, so we bought.
We bought this one for sevenand a half.
We're putting 3.3 in, so we'llbe all in around 11.
It'll praise around 14.5.
Um, that one I own 12 and ahalf percent of.
So it's there's four might befive gps, so the main operator,
and then there's there's there'sfour of us total who signed on

(12:47):
the debt and then I thinkthere's two others who didn't
sign on the debt and they, theykind of help put the pieces
together.
So I'm basically just, uh, kindof a marketing spoke and a.
You know I helped raise, Ithink I brought like 1.3 million
into the deal through people.
And then, yeah, the marketingside and the social media side.
Once it's done, we're notreally messing, pushing that too

(13:07):
hard yet.
We're going to wait untileverything's pretty and then
blast it all over.
But like I was the MC at anevent there two, two or three
months ago and I basically likethere were like a hundred people
in attendance and I got 72 ofthem to leave five-star reviews.
So that's kind of like myshtick is like boosting all the
online traffic and then I'mhosting my event there.
So I'll bring another 100, 110people to the event or to the

(13:30):
hotel in you know, this month orin February, and that's like
our lowest month traditionally.

Speaker 1 (13:40):
I don't know what that is.
Somebody taking a shower.
Is that me?

Speaker 4 (13:43):
Somebody using a leaf blower in their kitchen.

Speaker 1 (13:47):
Yeah, I had this smirk on his face.
It was probably his gardener.

Speaker 2 (13:51):
No, my gardener will be here a little bit.
It's the air return vent and itof course is located in my
office.

Speaker 4 (13:57):
Who made it Boeing?
Jesus yeah.

Speaker 1 (14:02):
The thing sucks hard enough, I never mind.
I yeah, the thing sucks hardenough, it might, I never mind.

Speaker 3 (14:05):
I stopped there, dave , I was going to go to cigars.
Like sounds like the perfectroom to smoke in, but I guess
Aaron's got other ideas.
I don't my mind's in the gutter, but whatever this is the kind
of thing you see on the EMT listof don'ts Aaron.
So we're absolutely where thoseEMT looks do that, the things
they've seen that don't need tobe restated.

Speaker 1 (14:29):
We had a don't do that this past, like about a
month ago now.

Speaker 3 (14:31):
we had a don't do that where somebody was like
well, it's you know, I didn'tplan on going all the way in, I
was like I have a really goodfriend who's a physician and
when he was in med school he hadan Instagram that was just
called will it fit, and it wasnothing but like medical
scannings of things they learnedabout, of people deciding oh
yes, I guess it would, but onlyon the one direction, like oh my

(14:51):
god of all the things thatwould be one of those like why
did dave kill himself?

Speaker 2 (14:58):
oh, that's the best part about it.
Huh, they never know howanything got there.
That's the best part about it.
Huh, they never know howanything got there.
Oh, I sat on it accidentally.

Speaker 3 (15:07):
Yeah, yeah, oh man Anyway.

Speaker 1 (15:11):
We had one guy rupture a vein when he had it
done.
He almost bled out.
Before we got there it lookedlike a murder scene.
I was like what's going on?

Speaker 4 (15:17):
They're like, oh well , he has something in his butt
in his butt and I was like, ohmy god, guys, only only the four
of us can talk about 11 milliondollar beachfront hotel deals,
and then I mean we could hey,we're a good company reality of
the job yeah, that's true, allright so let's get back to the
11 million dollar deal, dave.

Speaker 1 (15:36):
How do you, should you guys, do a syndication or a
partnership?
What's that look like?

Speaker 3 (15:39):
yeah, this one was a syndication, so my first hotel
was just three of us.
We all went 100k in and wepartnered 30, 30, 33, 33, and
then one of my buddies got sofed up with how much extra work
a hotel is that I bought themout for zero dollars.
It was great.
I remember that.
Um, and then, uh, we still ownthat thing, it's.
You know it's slow season, soit's this month, but it'll be
fine.

(15:59):
We actually turned the entireupstairs into like extended
stays, and so it was the firstnovember since we've owned it
that we actually profitedinstead of like break even or
coming out of pocket.
So hopefully, that knock onwood, that stays the trend,
because november was up 34percent year to year in revenue.
So, um, and you know, so we'replaying with some things there

(16:19):
that hotel we we didn't knowwhat we were doing like that was
part of a package.
We overpaid because of thepackage.
Now, granted, I'll say we, weeach we threw 300k total into
this thing.
We've pulled 600 out of it.
We still own the hotel and andwe've sold the other stuff.
And so, you know, as far as likelosing on a deal, I'm like
we've already doubled up ourmoney like anything we make on

(16:42):
this is, you know, just icing.
So it's more just a learningexperience.
But this one was a syndicationand yeah, if we do some of these
other ones, there's a goodchance there'll be syndications.
But some of these deals are.
Some of them are just, they'rejust so easy that you get.

(17:02):
You know, I had one guy bringsix or 700 K into this last deal
.
So you get three or four guyslike that and you can just do it
as a partnership, depending onhow much the raise is.

Speaker 1 (17:10):
So all four of us are part of syndications.
I know that because three of usinvest in the same, at least
one of the same ones with thesame guy.
So can you break down with likeGP, lp, like how does
syndication work?

Speaker 3 (17:28):
Yeah, I mean long short it's, it's just pooling
money, right?
So essentially it would be likeif Mike had an incredible deal
and he couldn't pull all themoney together, he might call
the three of us.
And then you know if, if Tylerwas able to like, he calls Tyler
and Tyler's, like oh, I got twofriends who can fund the whole
thing.
Then, like, depending on thevolumes, right, like Mike's the
general partner because he'srunning the show, if Tyler
raises enough, he might be ableto be a general partner, and
then we'd both be kind ofpassive investors.
Limited partners basically justmeans non-voting shares and you

(17:52):
know there's different ways tostructure it.
But the bottom line is justpulling a bunch of people
together to raise money for adeal and you generally do like a
70-30 split off of return.
So if our payout is supposed tobe 100K at 7% interest, we'd
get 7% and then anything overthat would be like a 70% split

(18:14):
to us and a 30% to the peoplerunning it, and so the people
running the deal essentiallymake no money for years and then
eventually they get a massivepayout and the people who
invested, if it's a good deal,just get, you know, monthly or
quarterly checks in perpetuityand it should come out to
somewhere between, you know, onthe low end, 16, on the high end
, 22% annualized return.

(18:35):
Anything you see projected overthat is often a kind of a red
flag for me that they're they'reway too bullish on the market,
which answers your otherquestion.
You asked about a fund.
I have been going back andforth for probably a year now
because I have an army of peoplethat I could probably raise
into a fund, especially if Iopened it to lower investments

(18:59):
for, like younger servicemembers.
You know, even if it was likefive grand or 10 grand a pop, I
could probably generate asignificant amount of cash to
invest with and be confidentthat I'd earn a good return.
Problem is that right now inthe market where there's a lot
of syndicators strugglingbecause they, you know, bought
things on interest only andbridge debts and whatever, not
banking for rates to do whatthey did, I feel like I'd be,

(19:21):
you know, standing outside of ahouse fire trying to sell
matches to firefighters.
It's like come on, guys, theseare great, trust me.
No, don't worry about the,don't worry about that.
Like this fund's better.
So I'm like, oh, we're going towait and see what the market
does.
For now I'll stick to like dealspecific.
So we're we're looking at thatone in St Croix.
Uh, I also have a call todaywith a buddy that they're doing

(19:43):
ground up construction on likeflex space, so like industrial
warehouses where you can justthrow dividers in and rent out
different spaces, and they'vegot some really solid projected
returns, primarily because oneof my really good friends has
been in construction for like 15years and he's developing it
ground up, so their costs goinginto this are very, very, very

(20:03):
low and the's developing itground up so their their costs
going into this are very, very,very low and the upside is still
pretty, pretty stable and sobecause they're able to build at
a fraction of the cost, mostpeople are the returns, look, I
would say probably in that rangewhere you normally I'd say it's
a red flag.
But I've known these guys forfive, six years.
I mean one of them.
One of them is a private pilotby charter for billionaires and
the other one like builds housesin bail.

(20:25):
So they're both there.
I trust there.
I've seen there before andafters and I've seen them both.
I saw one of the guys lose ahalf a million dollars in a
private loan to somebody hetrusted.
So I, you know, I feel veryconfident in when they say, oh
yeah, this is legit.
I'm like, okay, well, you knowyou make $60,000 a month flying
around a guy worth $40 billion,so you know a thing or two and I

(20:46):
feel okay with whatever.

Speaker 4 (20:48):
The flex space market is really interesting.
It is, and I think there's a lotof runway left in that, just
because of the way, especiallylike where I'm geographically
located, amazon has probably sixdistribution facilities within
close proximity and then thatgenerates a bunch of like call

(21:09):
it spinoff companies.
We'll just say that like so youhave like all these light
industrial parks basically whereyou'll see that flex space.
You know, this one's anauctioneering service, this
one's a window tinting guy andthese two are like a less than
load delivery company and youjust see that stuff a good bit

(21:32):
around here.
And it's to me kind of nicewhere it's like the I don't want
to say passive or hands-offish,but it's less management
intensive than a hotel.
Obviously Now, I've never owneda hotel, but I've done Airbnb
but you go from having to belike concierge, top level, this,

(21:53):
that and the other thing towhere it's more like the storage
business, where I don't have toworry about a lot of the, I
don't have to worry about thelinens, I don't have to worry
about the plumbing, I don't haveto worry about that stuff, and
the flex space is kind of kindof the best of those two worlds,
I think, where you get thehigher income per square foot
but less BS of a rental.

Speaker 3 (22:13):
Yeah, especially because it's you know it's a
triple net and or or or at leastsome level of the tenant pays
most of their issues and usuallylike, generally speaking, right
, well, kevin, try to say thiswithout coming off like sexist

(22:34):
in any way.
But so there's a reason thatthe majority of, like, really
successful residential agentsare female and the majority of
really successful commercialagents are male, and it's
because traditionallyresidential real estate is the
emotional side of the space andwhere it's really pretty and all
the looks and feels matter, andcommercial real estate is a
very male dominated spacebecause it is not emotional at

(22:56):
all.
It is.
Here's the numbers.
Does it freaking work?
What's the zoning?
Great, nobody cares if theirwarehouse looks sexy.
That being said, I mean thereare some really sexy warehouses.
But if you kind of take thatfurther into, like who dominates
the service industry?
Like it's not the high schoolgirl who's like I'm going to be,
I'm going to build alandscaping company while I'm a

(23:17):
junior in high school, like it's.
Or a plumber, like they are nothunting those jobs.
So you are servicing anindustry in the commercial space
where most of your clienteleare generally blue collar,
hardworking dudes who don't givea crap as long as they have a
place to park their truck.
At the end of the day, the drama, the headaches, the whatever

(23:38):
compared to hospitality where,god forbid, you bought one ply
toilet paper me.
This guy right here will bestanding outside your Airbnb in
Hawaii holding it saying this ismy sign that you should not
have been an Airbnb host.
Like in hospitality.
You spend money on things likethis, like where's my coffee
maker?
Why don't I have?
You know, cause when you stayat a hotel or you stay at a

(24:00):
Airbnb like, you expect a fewthings.
You expect a nice gentleCharmin, you expect clean towels
, you expect a coffee machinethat'll make you a cup of Joe in
the morning, probably some wifi.
You know, if your TV doesn'twork, you're going to gripe at
the front desk, like all thesethings.
Whereas a fricking emptywarehouse, like do I have
outlets and are my utilities on?
If they're not, I probablydidn't pay the bill, cause

(24:21):
that's my job, not theirs.
So like, yeah, it's one of thosethings where it's like the
returns there, but the headacheisn't so it's because the
opposite like the hotel space.
It's funny.
You might buy a million dollarapartment complex with 100K NOI

(24:47):
in a year, but you won't evenblink to touch a hotel at that
You're looking at.
They want typical, like strikeprice for hotels is three X
revenue.
So, like for a million dollarhotel, you'd want it to be at
like three, 40 in revenue,whereas with an apartment you
could be at, you know, a thirdof that and you'd be totally
fine, cause you've got a managerand maybe a maintenance guy,
whereas I've got like eightemployees.
So yeah, it's a whole differentgame and the returns skew for it

(25:09):
.
Right, but like it's the sameargument to be made as Nick the
new guy investor buys a D-classapartment complex where he needs
to carry a firearm every timehe goes to the property, but it
makes incredible money.
And the seasoned does, theseasoned old veteran guy pays
cash for a, a class beautifulproperty that he rents to a

(25:31):
doctor.
His margins are almost nothingand he sleeps like a baby.
So it's, you know which do youwant?
Where are you?
The?

Speaker 4 (25:38):
paper returns.
I mean I think we probably allcould tell our stories about
that where on paper I shouldhave made X on this place, but
it was a complete dump in a badarea.
It was management intensive,every turnover was basically a
rebuild and you never actuallysee those returns versus like I
have a house right now.
On paper You're like why wouldyou buy that as a rental?

(25:58):
Long story.
But knock on wood like I don't.
They don't even think about it.
No, so um, yeah, I would saythe way you're talking like it
just makes me think the hotelbusiness or play is almost less
real estate and more of abusiness.

Speaker 3 (26:17):
Oh, it fully than real hospitality business, which
is why I don't operate yeah, Ilove this, as long as bl would
be nightmare as long as Blakeruns it.

Speaker 4 (26:26):
Yeah, I can't imagine , cause I know what it was like
running Airbnbs and, like lessthan a dozen of them, I couldn't
imagine running a hotel, youknow, and just the higher the
price point, the higher theexpectation, obviously.

Speaker 1 (26:40):
So, well, the way that you touched on.
You said triple net, and a lotof people don't know what triple
net is is it's three ends.
When you look at something,it's it's they pay the taxes,
they pay the upkeep and they paythe utilities.
So they're in charge, they'reresponsible for everything.
So if you go in there as theowner and you videotape and say,
okay, this is how it looks andthis is how I want it back, and
they screw it up, then it comesout of their security deposit or

(27:02):
whatever.

Speaker 4 (27:02):
However you guys structure it and oftentimes they
get billed common areamaintenance or cam charges every
month for the snow removal, thelawn care, that kind of stuff.

Speaker 3 (27:12):
Or even better, let's say they want the space to look
different when they rent it,like infills on them, so you're
not putting walls in for crap.
You're like, yeah, okay, great,go to the bank, figure it out.

Speaker 1 (27:23):
They can ask for help from the owner.
I can't remember the term.

Speaker 4 (27:29):
What is it?
Some of the build out.

Speaker 1 (27:32):
Sometimes they'll like building improvement owned
by the owner, whatever the Ican't think of the term right
now, but they can ask the ownerfor, you know, building
improvement.
You know contributions orpayback or discount.
They, you know buildingimprovement.

Speaker 2 (27:43):
You know contributions or payback or
discount.
They get a credit for liketenant improvements.

Speaker 3 (27:45):
Yeah, it's all negotiated, depending on what
they do.

Speaker 4 (27:47):
Right, yeah, and you can.
So the landlord can build itout, like, say, you want four
offices and a bathroom, butmaybe you don't have all the
funds for it, that the landlordcan pay to build it out, and
then just, in essence, buildthat back into the lease,
amortized over a certain amountof time.

(28:08):
So they're getting paid back,obviously with interest over a
certain time period, cause a lotof those leases are not a
one-year lease, they'refive-year, seven-year, 10-year
lease type things.
Yeah, I really like that space.
Yeah, yeah, they all, almostall, have a 2% to 3% bump every
year, just right in the leasedocuments.

Speaker 3 (28:31):
I've been diving into that a little bit more just
because, as I've gone down theroad of storage, that's kind of
in that same asset class, I'msupposed to be under contract on
one of those right now, but theEPA has something to say about
apparently allegedly building ontop of a train station from 100

(28:53):
years ago equals dirty dirt, sowe're waiting on deciding
whether or not the citydemolishes his storage facility
before we sign the contract.

Speaker 1 (29:09):
There's a buddy of mine owns a um, a development
company out in delaware by thebeaches, and there's an area
called lewis, delaware which isa popular area by, uh, by dewey
beach, and a developer found outthat the soil that he's trying
to build on is things too acidicor too much alkali I can't
remember one of the one of thetwo and um, the epa, stepped in
and said you basically have toremove all of this dirt.
There was a farm before you gotto remove all this dirt and

(29:31):
give us, uh, your plan for ummaking it safe again.
You can do backfill if you wantto, but you're I mean that's
hundreds of acres of dirt iswhat they want to remove and
then find out where they can putit legally and then refill the
dirt and then do the the buildactually like maybe I'm building
in front of millions.

Speaker 4 (29:48):
I'm a little naive, but like, why?
Why would that impact thebuildings?

Speaker 1 (29:53):
so the soil.
When you do soil testing fordevelopment, the soil has to
meet certain perimeters to makeit safe to have neighborhoods
there.
So, like the, the baseline for,say, a farm is going to be
different from the baseline forresidential neighborhoods.

Speaker 4 (30:05):
Safe the house or, like you don't want the kids
eating the dirt, or what?

Speaker 1 (30:10):
It's kind of like lead.
Like lead is obviously bad forkids, but as long as the kids
don't eat the fricking paint,then you're you should be good.

Speaker 4 (30:19):
So here's my thing about like affordable housing
and not being enough affordablehousing, then we're gonna sit
there and try and make peoplemake the the freaking dirt safe
enough to eat for the.
The window licker kid that'schugging earthworms in his front
yard like what, what do youwant?
Like?
No wonder people don't want tobuild shit this is where mike
starts his political career yeah, yeah, no, you're right, but am

(30:42):
I wrong?

Speaker 3 (30:43):
like you know, the facility is this storage
facility has been here like 60,70 years and my buddy hasn't
updated anything on it.
But they found a house down theroad when they went to remodel
or rebuild or whatever hadissues and they checked the next
and they it's almost likesystematic, like they're going
to take the whole block out andjust build something new on it,
but it's, you know exactly.

(31:04):
It makes you just stare into amirror and go huh, because
you're like it's been here 60years.
The one of the spaces that iscurrently filled like infilled
with storage units as an insidepart, as opposed to all the
outside storage units, was atrain depot.
Like we know for a fact, likewe're not idiots in when route

(31:26):
66 and and this freaking trainstation came through in the in
the early 1900s, they were 100dipping oil all over the damn
place.
Nobody like cared when we builtit.
But now all of a sudden, likeright as we're about to sign the
contract, the epa is like hey,we need to drill some holes in
your, in your parking lot andmake sure the dirt underneath is
good.

(31:46):
What if it's not?
Well, we might need you to takethe whole thing down.

Speaker 4 (31:49):
Well, yeah, because okay, like it's kind of like,
but if you don't test for it,it's not there, right?
Don't?

Speaker 1 (31:56):
don't test this soil and you don't have to worry
about it, right, but dave toyour point.
Like, since you're, I'm sureyou spent time on lots of
different bases, some of thembetter, some of them not.
Around the country Bases have abad history of dumping stuff
around them.
So, mike, up by you, fortDetrick, by your first dude,
there's a cancer cluster.

Speaker 4 (32:12):
Tell me about it.
I can see it from my front.
Apron.

Speaker 1 (32:15):
Yeah, so there's a cancer cluster outside of Fort
Detrick.
There's an ongoing lawsuitallegedly that they were dumping
stuff there.
You know munitions and shitlike that over the course of the
last 100 years.
So like when you're looking atdeveloping and building, these
are some of the things that youdon't know.

Speaker 3 (32:30):
You don't know I'm gonna mute myself before I admit
things I shouldn't, but uh, no,I have no idea from firsthand
experience at all deny, deflectand reaccused.
That's the dc way, that's so wewere, might not be the way
anymore.
Deny, oh yeah, denied todispute depose yeah or whatever

(32:54):
the united health care thing.

Speaker 4 (32:56):
Yeah, that's crazy, that's a whole you wrote that on
the shells.

Speaker 3 (32:59):
I'm like well, all right, at least we know why this
went down.
No, no questions about that.
Yeah, that's, that's kind ofnuts.
This whole scenario, that wholescenario is wild.
I don't know if you've seen anyof the clips of the attorney
for the kid, but this attorneyjust they're like so why is?
And he's like no, no, no, no,no, no evidence, there's been no
evidence.
And they're like well, why didhe?

(33:20):
He's like how do you, what doyou mean?
Shooter, my client's beencharged of nothing.
He's like the whole.
He's right, what's the whole?
Innocent until proven.
So he's just like.
They're like well, what about X, y, z?
And he's like I don't know whatyou're talking about.
He's not been to court.

Speaker 1 (33:37):
Denied denied, denied it's so funny.
Criticize, criticize, criticize, criticize.
You look at some of thesepeople.
It's kind of like if the glovedon't fit acquit, the more money
you have, the better chancesthat your lawyer is going to be
a high paid lawyer that can getyou out of whatever so if the
glove don't fit acquit.
The fact that I was just toldthis earlier was that he still

(33:59):
had his 3D printed gun on him,he still had the manifesto on
him and he had something else.
This sounds like a fictionalbook I would read back when I
was like in high school.

Speaker 4 (34:09):
Well, I've never been an assassin, but I feel like
that's like the first thing theyteach you in assassin school,
like get rid of all that crap,don't walk around with it, but
allegedly and I haven't gone tolook but allegedly he made a
youtube video that came out liketwo days ago supposedly.

Speaker 3 (34:25):
That basically said, like you know, if you're seeing
this, I've been arrested.
And then it was like a minutelong and it basically said
standby, for I think it saidstandby for the 13th or
something like that.
And like he's like I've gotanother video and so, like,
supposedly tomorrow there's anactual, like full length video
of this guy dropping on theinternet that is set and set to

(34:48):
go and I don't know many movies,man, he's trying to set up a
whole script.
It's so interesting though I'mlike, oh my gosh, like I hope
Netflix is taking you know some,some notes on how to make a.

Speaker 1 (34:58):
TV show.
Maybe he had a body cam on whenhe did it and now he's going to
release the body cam footage Iknow well, it is a very
interesting like.

Speaker 3 (35:07):
I mean, it was very like.
If you, even just watching thelittle clip, you're like this is
not a guy who doesn't knowsomething about firearms, like
this is not your typical likeangry this was calm, cool,
collected, well thought out, hadfired a gun many a time makes
you wonder if you'd ever shotanyone before, because shooting
somebody's a lot different thanshooting a target.
And he just like folk, I meanit's it's interesting to watch.

(35:30):
And then you see the clips ofthe kid like losing his mind
with cops and you're like justthe personality even, like it's
like yeah, it doesn'tnecessarily add up, because he
was anyway whole side.

Speaker 1 (35:41):
He's from um.
He's from maryland.
He's up by.

Speaker 3 (35:44):
He grew up by baltimore and uh, the name no
wonder he's fired a firearm Iwas gonna say, yeah, this guy's
probably shot a ton of people inthat case go practice on the
west baltimore real quick and Ihad a friend who was a he's uh,
I'm not gonna name him or his,the guy he works for right now,
but he he was an NBC reporter inBaltimore and like, and he's

(36:06):
now he's a video editor for afriend of mine and shoots all
his footage.
But I was asking him aboutBaltimore one day and he's like,
dude, I'm pretty sure like he'slike I was the guy who showed
up on crime scenes and had tolike get testimonies from people
who just had their like youknow brother shot.
And he's like the guy likestepped off script, made a

(36:27):
really odd phone call that madeit sound like he ordered a hit.
And then like lo and behold, Iwas in that neighborhood that
night with a murder, likereporting the murder.
And he's like I'm pretty sure Isaw like oh man, again goes
back to deny, deflect andreaccused.

Speaker 1 (36:43):
Yeah, but he, he comes from a really rich family.
His, his, his parents or hisgrandfather was a really big
real estate investor inBaltimore.
So I knew the name.
It had clicked.
So I looked it up.
And his grandfather?
He owned assisted livingfacilities.
He owned, I think, a hotel ortwo, a bunch of residential
stuff.
So the name was familiar.

(37:04):
And then I looked more into itand found out that he went to a
$40,000 a year school as a youknow high school and blah, blah,
blah, blah, blah.
I was like all this because hisgrandfather was a real estate
investor.
Funny how things work out.

Speaker 3 (37:20):
Well, he's famous.
Let me bite my tongue there.

Speaker 1 (37:22):
What do you say, Ty?

Speaker 2 (37:23):
I said, it all comes full circle back to real estate
investing.

Speaker 1 (37:26):
Yep, yep.

Speaker 2 (37:31):
That's how I brought that back around.
You weaved it.
The weave, yes.

Speaker 1 (37:37):
So what's?
I mean, dave, we're like 37minutes into this thing.
So what's something that youwant to do in the future for,
whether it be investing or likeyour personal life, like what
are your goals now, becauseyou've had a pretty fricking
cool life so far?

Speaker 3 (37:51):
It's been all right.
I mean, I think one of my goalsis to like get healthy again
and not like pass away in thenear future from all the crap
I've dealt with.
You know, no, I really, being agood father, I love my like.
I have this online communityhelping service members and vets
, and so my goal there is tohelp 10,000 vets achieve
financial freedom.

(38:11):
You know, we've got amastermind in there that we we
run and I love it.
It's fulfilling, but I've got aI won't, I won't, we'll keep it
.
Kind of.
I've been making people signNDAs.
So, since this is a podcast,we'll kind of we'll just say I
have a business that I'm tryingto branch into in 2025.
And if I do a good enough job,you'll all know about it by the

(38:31):
end of 25.
But my hope is to use that toreally impact a lot of events
and kind of change the I want tosay change the banking culture,
because it's not going to be abank but like that kind of side
of things where it's verycommission driven and people
seem to like to target vets foryou know, screaming deals, quote
, unquote.
So we're going to try to buildsomething out that's fee-based

(38:53):
and subscription model ratherthan commission-based, to
compete with some of the bigdogs.
Kind of leave it vague therefor now, but that's a good
indicator.

Speaker 1 (39:02):
I mean that gives us a good baseline of what you got
going on.
I mean same thing firstresponders and military guys
like everybody uses us to kindof prop up their ideologies like
, oh, I support so and so Isupport so, and so you know it
takes just as much effort toclick the veteran owned box on
Google and there's just as muchverification as to click the

(39:24):
LGBTQ owned.

Speaker 3 (39:26):
So all of my real estate properties are owned by a
gay vet and nobody knows anydiff.
You know, it's like you can'tprove which one I am.
I'm one of them, I identify Ijust tell one of my partners.
I'm like, hey, if anyone asks,you're the queer, and then
probably pronouns on their uhsignature box yeah, yeah, I mean
they probably are, but I'm like, I'm like, shoot, if this

(39:47):
impacts google search.
Like I'm gonna check, yes, onall the boxes I can.
I can't really check black, butyou know most of the other ones
are unverifiable.

Speaker 1 (39:55):
And wasn't there somebody in California, the lady
who like, ran the like aprofessor that she identified as
black, or something like that?
I mean, you can get away withwhatever you want these days.

Speaker 3 (40:05):
But I just figure, like, why am I going to let
google discriminate against mebased on my sexual orientation
when I can check a box thatdoesn't allow them to
discriminate against me based onmy sexual orientation?

Speaker 1 (40:15):
so I got a quick stupid story for you.
This is an off topic,absolutely, but this goes back
to identify as whatever you want.
Years ago I took a buddy ofmine over to do some speed
dating in virginia and um, Itold him my name was Jamal and I
am mixed.
And the little spring thingsthat are in the light filaments
for the light bulbs, I installthose for a living.
So, like these, the people thatwe were dealing with, the girls

(40:39):
they're like oh my God, it'ssuch a cool job, How'd you get
into that?
And blah, blah, blah.
And one girl was like you dohave big lips, I can see your
big style.
I was like you racist bitch,but like at the end of that.
So this girl was like your nameis not Jamal, she's like I know
you.
I was like no, my name is Jamal, I've been installed right for
him as well.
She's like no, no, no, I knowyou.
She's like I know your cousins.

(40:59):
She's like I've met you before.
So small world.
She, um, my cousin played heIreland and she was dating one
of the guys on the team.
So she had seen me at mycousin's games.
So I was like just don't blowmy cover.
Yeah, that's funny.
You can identify, however youwant to these days.

Speaker 3 (41:16):
Yeah, it's wild.
Youtube keeps asking me toinput my demographics and I'm
like I'm not feeling that crapout.
I'm a.
I'm a white dude Like there isno benefit to me for inputting
all my demo information intoyour website.
I know you're owned by google.
I'm like it's optional and aslong as it's optional, I'm blank
.
I'm just dave so would you?

Speaker 1 (41:38):
I mean, are you still looking at the residential
stuff or, like you, focused moreon like the flex space and
boutiques, or like what's?

Speaker 3 (41:44):
yeah, I mean I'm open to.
I call, I dub myself a buy andhold guy and I don't necessarily
have like like we're looking atthat storage facility.
We just sold an RV park.
We sold two apartment complexesthis year.
This year we bought that hoteland then I bought a single
duplex and then I bought a 13single family portfolio.
Basically, what I'm doing iswhatever I can get into without

(42:05):
a ton of cash out of pocket andor without having to be the
operator I'm in for.
So, like the 13 unit portfolio,I own 35%.
I brought the money and signedon the debt and formed the LLC
my buddy's operating everything,doing all the renovations and
whatever and he found the deal.
And then the duplex I got inzero down creative financed.

(42:26):
Basically I got the seller tocredit me the down payment for
closing, so I just you know andhand it off to a property
manager and the hotel I'm.
I raised probably about a thirdof the cash for it and do all
the social media stuff orwhatever, but I'm not operating.
So I'm just trying to keep towhere, like, my investments are
as hands-off as possible and I'drather be the guy like signing

(42:47):
on the debt as opposed toputting in all my cash because
I'm trying to reinvest my moneyinto my actual business, because
that turns out more cash, andthen I can use that to go buy
things I do plan.
My goal this year, hopefully,is to pull enough cash aside,
now that I'm done paying off thedivorce, to actually go and
throw.
I'd like to just pay off acouple of my houses.

(43:09):
So it's just straight, you know, pure nothing to worry about.
No interest rate cash, just aslike a nice little hedge.

Speaker 1 (43:17):
But I did that years ago.
I paid off two of my houses.
My tax lady was like it's dumb,don't do that.
And I was like why, that's what?
Like, I started learning aboutokay, appreciation, depreciation
, cash flow you invest for threedifferent reasons.
It's either all three or one ofthe three or two of the three,
and I was like depreciation shebroke it down to me.
So, residential real estate youcan write off depreciation of

(43:40):
the house not the land but thehouse for 27 and a half years,
whereas commercial, which youguys have been doing, you can
write off over the course of 39years.
You guys have been doing youcan write off over the course of
39 years.
Um, and then, obviously, withthe step up and the bonus,
depreciation that has changed alittle bit is slowly going away,
with trump coming back inoffice who knows it actually is
if it's going to be re-upped ornot um it's just the ways you

(44:00):
can avoid paying taxes.
That's what trump said.
Like, I do the same thing thatyour friends do.
This is what he's talking about.
Stuff, stuff like this, oh yeah.

Speaker 3 (44:08):
I love it.
I'm hoping it comes back.

Speaker 1 (44:13):
So, let's talk about books.
I remember vaguely that youwere writing a book or you had a
book and then somebody copiedit.
Can you tell me about the books?
Okay?

Speaker 3 (44:22):
So I have a book, that OBS guide to military life,
and I won't say that somebodycopied the book, because his
book is admittedly different,but I will say that if you were
to read the back of the book andthen go to Amazon and look at
his book, you can tell that hetook this, put it on ChatGPT and
said make sure this passes aplagiarizer, because it is just

(44:44):
different words that say thesame damn thing.
To a T all the way through.
There's probably like eight ofthe 15 paragraphs are like damn
near identical, all the bulletpoints.
And then at the very bottom,mine is like you know, you
served your country, now it'stime to enjoy your freedom, or
something like that.
And his even has that likeasterisk bullet point at the

(45:05):
bottom.
And I'm like all right, dude,whatever.
Like I talked to my my attorneyand he said it's it's not a
copyright infringement becausethe ideas are not original, like
he didn't steal any originalideas, he just plagiarized.
And I'm like, well, that'sprobably how this guy got
through college because he's not, maybe through naval school,
and then yeah, exactly like.
Must have been a great officer.

(45:26):
Then I pulled up his picture onlinkedin and I laughed.
It was like it looks like itpicture.
Picture fits the action.
The funny thing, though, is heprobably doesn't even know like
he probably hired some book likeoh look, we'll get you
published.
Well, you know, you'll haveauthor credibility, because I
bought it's like a flimsy, it'sa he didn't take his viagra.
You know, the book is just as alittle booklet and I'm like,

(45:48):
yeah, whatever, mine's likethree times the length and
actually has information in it,so I'm not really like too
bothered by it.
I may have acknowledged to acouple of really close friends
the book title so that theycould, you know, decide for
themselves whether it was worthpurchasing, and then being a
verified reviewer when theytrashed it.
So far I don't think anyone has, but it's on them, I don't care

(46:12):
.
I almost trashed it online andnow I am a verified purchaser,
so I just might.
I might just put my own photosof my own book up and be like
I'm not saying I copied this,but mine was published first, so
at least I'm going to letpeople see my book in the
reviews, and it's bigger andsize matters, even when it comes
to books, I have a hard copy.
He does not.

Speaker 1 (46:34):
Let me ask you this.
I want to actually ask allthree of you guys this what um?
Is there any anything you wouldnot invest in again or in the
in the near future?
I want to start with you withme.

Speaker 3 (46:47):
Sounds targeted.

Speaker 1 (46:49):
Uh yeah, probably no Walmartmart or amazon source oh
yeah, that one got a lot ofpeople yep, why, why, why do you
say that I know, I know, butwhy put it out um?

Speaker 2 (47:01):
it didn't, honestly, I broke even on it.
But like I just I did researchand I heard what I wanted to
hear.
And then, like stuff startedhappening and I started getting
mail and I was like wait aminute, like what the heck?
Like why am I getting cease anddesist and stuff like that?
And then once I saw it, I looklike I said I broke even and
shut it down.
But the whole thing and thenthe aftermath afterwards it was

(47:22):
just it was like okay, Ishouldn't say that I would not
do something like that with athird party.
If I'm going to do something,that would go down more like a
more traditional route, likeactually have a store, create a
product, do something like that,but the whole third party thing
, it was like if it sounds toogood to be true, it's probably
something wrong with it.
So that would be the one thingI would not invest in again

(47:47):
again, mike, how about you?

Speaker 4 (47:48):
I would basically echo his statement there and
then, yeah, I would.
I will not invest in anythingthat I can't be like on title or
have some sort of recordedinterest where where my
investment is secured bysomething.
So basically what he said athird party I would not do
anything like that and frankly Ijust he mentioned about.

(48:16):
Dave mentioned aboutsyndications.
I am in one syndication we'reall familiar with that and I
think we're all involved but Idon't know how many of those I
would do moving forward, notnecessarily because I have any
issues with the one I'm inwhatsoever, but there's a lot of
syndicators that we alluded toearlier that are kind of right

(48:37):
now really screwed and I don'tnecessarily want to get lumped
up into that.

Speaker 1 (48:46):
So the SBA and FBA stuff, so that basically you
become an Amazon seller.
I think one of the issues thatyou're building your empire on
now directly impacts yourbusiness.

Speaker 4 (49:19):
There were guys killing it in dropshipping for
years of the online retailerschanged a policy to where you're
not allowed to do that anymore.
It became like, well, thisentire business is built on a

(49:40):
sandcastle foundation and itthat that's really the crux of
it right, like there was nothingnecessarily wrong with it.
There's plenty of people thatstill do it.
I mean, maybe not on thoseplatforms, but they don't buy
the material for the job, if youwill, until they get the order.

Speaker 2 (49:52):
Yeah, it's just like terms of exchange and boom,
business is done, yeah, so yeah,it's one of those things like
never build your empire onrented land, I guess.

Speaker 1 (50:02):
Yeah.
So the syndication thing, Iagree with you and I know why
you're saying that is becausegenerally the money that we put
into something like that we'lljust say round number is 10%
return.
So we know that our projectionsare for five years, quarterly
paid out, say 10%, or you havean 8% return with an equity
position in the backend.
But can you do more with thatmoney?

(50:24):
Because obviously we're allactive investors and our active
investments usually make abetter return than, say, eight
or 10%.
So like, is it worth it to putmoney into a deal like that.
On one hand it's kind of likeokay, it's money you don't have
to think about, I can project myincome coming out of it.
I know I'm getting paid back onthe backend, but can I make
more money somewhere else?
And I agree with you in thatrespect.

(50:45):
I'd also think that it's for me.
It opened doors and I can haveconversations that I definitely
couldn't before.
Like if I need to go tosomebody who's a syndicator, I
can say, hey, I need you to workwith me on this, to show me how
who do I?
need to talk to and how do youset this up and structure it,
and blah, blah, blah.
Some people don't have accessto people like Dave or Tyler or
Mike who can walk them through alot of these things without

(51:08):
having to pay for, say, a courseor something like that or being
part of a group.
So I think it does open doorsfor some people and for people
who are too busy in theirday-to-day in W2, I think it
creates an atmosphere, or not.
An atmosphere creates anopportunity for them to make a
return on their investment moneythat would always sit there
stagnant, because 8% and 10% isstill better than your high

(51:33):
yield savings, which right now Ithink are like four to 5% max.
There might be a higher, lower,but, like it's a, you know,
double your returns with justhaving somebody else do the work
.
Dave, what do you, I mean, whatdo you think about that and
what do you think about thingsthat you never invest in again?

Speaker 3 (51:48):
And there's.
I'd love to say I just neverinvest in shitty people again.
But you know, easier said thandone, I actually had an Amazon
similar, similar ish.
I didn't actually invest in one, I was.
I was doing marketing for acompany where I was supposed to
you know, get.
As a result, I was supposed toget a store out of like my
marketing results plus a shareof you know get.

(52:09):
As a result, I was supposed toget a store out of like my
marketing results, plus a shareof you know whatever revenue.
I drove over their normalwhatever.
And uh, yeah, that guy owes me70 grand and no, no store.
So same same thing.
Um, I ended up, you know, wetried to sue to collect and
basically he just dissolved andran and it's pretty funny.
Um, that was unfortunate, but I, you know, we never really got

(52:33):
any answers out of that.
I think there were probably acouple of people who bought into
stores that got hosed in thatregard.
So, man, you know, I think theanswer for me is basically like
anything where I have to be thepoint of action.
So you know, I don't want to bethe guy managing GCs on

(52:55):
renovations and flips and Idon't want to be like I am not
detail oriented enough tosucceed at a high level as an
operator, and so I'd rather stayon the like vision side than on
the day.
And, that being said, like I'm,I fundamentally I'm good at all
of it, until it comes to thepart where you have to like hold
someone accountable to it.

(53:16):
Like I am a people pleaser tothe core, like I just do not do
a good job of being like nomother, like this is not what
you said, this is what you said,this is what you're gonna do.
Like all of that part's whereit like falls apart.
Um, so I'd much rather likehave an ax man and stay as the
guy who is like the face.

Speaker 1 (53:35):
So hire somebody that is better in a position that
you're not good at.

Speaker 3 (53:38):
Yeah, that's why most of my deals lately, like, the
common theme is right, like I doall this stuff, but he's
operating.
I did this, he's operating.
I gave him a chunk of equity tooperate, like even the, even
the mobile home park.
I negotiated that one foundedas a friend of mine.
You know we're buying a zerodown with the credit and all
this other stuff and or sorry,self-storage facility.
And then I called my buddy, thesame guy who operates that 13

(53:59):
unit, and I was like yo, I'llgive you 50% if you run the
day-to-day on this.
Like, I'm totally okay withpassing off a large chunk of
equity for it to be as close topassive as humanly possible for
me and to know it's taken careof by someone who actually is
good at the operations, becauseit'll be run better than I would
anyway.
And then I can focus my energyon places where I generate
revenue, which for me is, youknow, the, the online, like the

(54:22):
face, the networking, thecoaching, the, the helping other
people build a business andraise money is where I generate
more of my revenue and it's morefulfilling for me.
Like, I'd rather, you know, Ican help if I can.
I can make 10 grand off atenant and they're never going
to thank me for being a landlord.
Or I could like make 10 grandoff helping Aaron make 10 grand
and that's way more fulfillingfor me, way more fulfilling for

(54:43):
Aaron, way more impactful.
It's just more fun.
So I'd rather do that.

Speaker 1 (54:49):
So invest in the people, not the not the asset as
much.

Speaker 3 (54:55):
Yeah, so, yeah.
So for me, it's more of that,like it's not that there's an
asset class I wouldn't touch,although I would.
There are certain strategies inasset classes, right, like the
all the get rich fast day trade,forex, you know, crypto,
whatever, like they all have aplace as, like a small, risky,
asymmetric bet in your portfolio.
I don't think they have a placeas a large, you know pin in
your portfolio, and so I just.

(55:16):
For me, it's more like, yeah,how do I invest in whatever
asset?

Speaker 4 (55:20):
like what's my yeah, the crypto thing.
I still don't really understandit, but I will say that the
like three grand I put in thereum a couple years ago is now
worth uh 7400, oh yeah it's alsobeen worth like 200.
It's like yeah like a millionbucks in it.
I'm just like.
I don't know how the hell youdon't have a mess massive

(55:42):
drinking problem.
I would never be able tostomach the roller coaster.

Speaker 3 (55:45):
Yeah, it's just, and I do understand it fairly well.
I've read probably five or sixbooks on it fairly well.
I've read probably five or sixbooks on it.
I've I've dabbled in it a lot.
But my strategy is essentiallylike small bets in many places
and when something blows up thenI pull the cash out and go buy
it.
So, like that dogecoin phenomwhere everyone went crazy.
Um, I had bought dogecoin aboutsix months before anyone even

(56:07):
knew what it was.
I put 200 bucks in because Isaw it and I was like that's
funny.
And then Elon Musk tweetedabout it and it skyrocketed and
over the next month it just wentbananas and every time it
doubled I'd pull half out.
I turned that 200 bucks intolike 15 grand.
Well, the difference betweenwhat I did and what everyone
else did is that 15 grand boughta duplex and I now rolled that

(56:28):
into a hotel and rolled thatinto whatever.
So that 15 grand has probablymade me 75, $80,000 in cash
flowing real estate.
That pays me every month, youknow, off that 200 bucks,
whereas most of these peoplethat I knew they were like it's
going to keep going and nowthey're back to square one, so
it's like $47.
Yeah, as like a asymmetric smallpiece of your hedge.

(56:52):
It makes sense.

Speaker 1 (56:53):
But I had one of my buddies from the firehouse, so
this is what I wouldn't do is Iwouldn't take advice from guys
from work on what to invest in,because three times what you are
.

Speaker 4 (57:07):
Yeah, I don't think it's a work thing.

Speaker 3 (57:08):
It's just a people thing.

Speaker 1 (57:09):
if the, if the non-industrial guys about amc
and it was freaking terrible toamc, just I lost my butt.
Um, that's part of that tulipsyndrome.

Speaker 3 (57:19):
I have a.
I have the tulip mania uh graphon the wall in my office on the
other side, just as a constantreminder.

Speaker 4 (57:26):
Yeah, it's like when they sold all the tulip futures
or something.
Yeah, so tulips back in.

Speaker 3 (57:32):
Oh man, it was probably what the 1400s or
whatever Like tulips became sovaluable you could trade the
right kind of tulip bulb for ahouse in, like the medieval
times and it just went bonkersand people bought, like sold
everything to get into the tulipgame.
And people bought, like soldeverything to get into the tulip
game, and then it is thehistorically it is the largest,

(57:54):
uh like boom and bust of anyasset class in history.
I can't remember thepercentages, but it's like just
freaking to the moon and then itlike just drops, and so people
literally like were sellinghouses for tulips.
And then people wait, anyonecan like they're just tulips and
they just went to dirt, youknow.
And so I have a graph of that,because basically, what it is by

(58:17):
the time everybody in the worldknows.
Just like AMC, like you're here,you might have a little bit of
runway, but like all the money'smade, all of that screaming
from the rooftop is the peoplewho got lucky.
The problem is those assholesdon't get out from the roof.
Rooftop is the people who gotlucky.
The problem is those assholesdon't get out.
And then, like, it gets hereand everyone a few lucky people
sell and everyone else getsdragged through the mud and
sometimes it's so bad that yousee, with like some of these

(58:38):
currency exchanges or whatever,where it comes down so fast,
even if you're smart enough tosell, you can't get your cash
out and it doesn't matter, andthat's what's really screwed.
People like robin hood got suedfor that during the amc thing,
or like they wouldn't let peoplebuy and then they wouldn't let
people exit, and people who knewthat it was time to get out
couldn't, and so like, yeah, Ikeep, I'd say, between zero and

(59:00):
like five percent of my networth.
Playing around in crypto is allpure speculation, gamble bets.
It's all very minimal and likelike anytime I I double, I pull
half out.
So like my house's money isplaying with the house's money
of my last house I think I'm theoriginal thousand bucks I put
in has probably been turned tolike 50 grand and I still have
like four or $5,000 in thataccount.

(59:21):
But every time it you know, ifit goes from like four grand to
eight, I'll pull four out.

Speaker 1 (59:25):
I had to explain that .
I had to explain that conceptto one of the guys at the
firehouse playing with the housemoney.
He was like what does that mean?
I was like you ever bet?
He was like yeah, I gamble.
I was like do you understandhouse money versus your money?
He was like no.
I was like, well, okay, youbring $100 to the casino to bet
money, right?
You made $400.
Now you have $500 in yourpocket.
You pull out hundred dollars,that's your money, and now

(59:45):
you're just playing with thehouse money, the four hundred
dollars profit that you made.
He was like oh, nobody everexplained that to me.
It's, it's.
I just thought it was commonknowledge.
Yeah, yeah, it's.
It's a good way to do it.
So I got something to say.
I'm waiting for it no, I'm justlistening.

Speaker 2 (59:59):
It's funny because I always used to talk about it at
the at the station.
It's like, yeah, you, youstacked your bets.
I was joking because I said, go, and that's what it is right
Like, you bet up, take yourmoney off the table.
Go back up, take your money offthe table.
So my captain every time hewould see me after I left that
station, hey, let's go vertical.
So, but no, I mean, it makessense, right.

(01:00:19):
And I think too what David said5% right, like there's a lot of
us that want to do stuff likethat.
Very small percentage, have funwith it, and if it works out,
awesome, if not, it's not goingto change anything.
One of my best friends isprobably the most conservative
people you'll ever meet.
He is not in the fire serviceor anything, but he loves penny
stocks.
His day job is a.

(01:00:41):
He's the chief underwritingofficer for a large commercial
bank, but again, he's notputting a hundred grand in there
.
He probably has like a coupleof grand.
He has fun with it.
He bets.
If it goes up, it goes up.
If it goes down, it goes down.
He's also the one that used todo 10 team parlays with me, but
it's like you're not banking onthat right.
We would never take the moneythat we invest in real estate,

(01:01:01):
like a couple hundred grand, andtry to buy Doge coins.
I mean, it's just, it's notsmart, but I think I think
there's always room for it.
And I have a buddy who hasmillions in crypto and I would
never, never would want to dothat because I don't understand
it.
But he does and he's very bigon it and he's never taken that
money out.

Speaker 4 (01:01:22):
So I could talk for another hour but unfortunately I
got to get these things calledkids.
But hey, dave, I know there wasplenty of stuff we didn't get
to.
We didn't even touch on yourmastermind.
But can you give the 30 secondspiel on that and if anybody was

(01:01:42):
interested, how they couldlearn more about it?

Speaker 3 (01:01:46):
Yeah, I'm your typical guru.
If you give me money, I'llpretend I'm making information.
No, I mean, it's really whatours is is.
It's a community, more thananything Like you've got all the
education you need online.
We've got anything andeverything you could learn from
me is probably already onYouTube podcast or or just my
blog posts.
But we do have a couplemasterclasses where we brought

(01:02:07):
in experts to talk about stuff.
But the education is not whatmakes the money in our group,
it's the community.
It's probably that we only letservice members and vets in, and
so it is the tightest knitmilitary community you can find
and it's just a place where youcan come and be yourself and
learn about money.
And really I tell everyone I'mlike the community is like all

(01:02:27):
the information is great, butthe way the community makes you
all the money is by telling youno, no, no, no, no.
Don't do that one thing, andthat'll save you more money than
any course will ever make you.

Speaker 4 (01:02:36):
No truer words spoken during the last 60 minutes.
Sometimes that's the bestadvice.
No, no, no, don't do that.
Don't do that.
Great there, you just muchmoney by saving it.
It's not even funny, yeah, Imean perfect example, right?

Speaker 3 (01:02:49):
If?
If one person had told me whatI should not sign in my
contractor agreement on my firstout-of-state flip, I would be
30 grand richer.
Yeah so where do they?

Speaker 4 (01:03:00):
find more information out about that.

Speaker 3 (01:03:03):
Oh, I've got the best link since our last show Go to.
Actually, this might'vehappened already by then, but if
you go to, what's that theoverlordcom?
I went I should buy that.
No, it is the best podcastguestcom and that'll.
You can get a free download ofmy book, all my social media and
connect there.

Speaker 2 (01:03:25):
That's a man with a minor in marketing.
I'm typing it in right now.

Speaker 4 (01:03:30):
Is that's a man with a minor and typing it in right
now like wait, is he serious?
Does this work?
Yes, it does.
No, is this one of the thingslike when you go to
whitehousecom or something?

Speaker 3 (01:03:35):
I should buy that too .
I just started buying random.
I probably own like 20 or 30random domains, like I've got
you know mine.
But then I also own militarybillionaire, just because you
know what, if one day I get bigenough that I have to own that
domain too?
So and that redirects to a page, the same page.

Speaker 1 (01:03:51):
It's just my face and a book the overlordcom is
available for 49.99 or theoverlordorg is available for 10
bucks.

Speaker 3 (01:04:00):
beautiful, I'm just saying I might just do that.

Speaker 4 (01:04:02):
I'll credit you if I nobody's gonna listen to this
and buy it now.

Speaker 1 (01:04:05):
So you better hurry up, dave thank you for spending
an hour with us again man, it'salways fun to catch up with you.

Speaker 3 (01:04:11):
Thank you very much, gents I appreciate you guys.

Speaker 4 (01:04:14):
Yeah, thank you.
Thank you for being one of thevery much out there, not one of
these guru douches.
Thank you the most guru douche.