The Firefighter Who Built a 6-Property Portfolio While Working Full-Time : Tony Daniels

Episode Transcript

Speaker 2 (00:01):
What's up?
Y'all, we're back.
All the normals are back.
We're having Antonio, alsoknown as Tony Daniels, back on
the podcast.
He's a firefighter up north.
He started getting into realestate after using Mike for his
expertise for a little whilewhen coaching, so we're going to
have him back on.
He's an Ohio firefighter.
I don't know he's allowed totalk about what city he's in,

(00:22):
but we'll get into that.
So, tony, thank you for comingback on.
I appreciate it.

Speaker 3 (00:29):
Give me the 15-second elevator pitch.
No, I appreciate it.
I feel like I'm newest.
It's been almost two years nowsince Mike gave me the blessing
and walked me through walked mehand-by-hand through the process
.
Just now starting, I think I'mon number six.
I've got a few projects goingon right now.
This will be the first timeI've got multiple projects going

(00:50):
on at the same time.
Still learning a lot, stillobsessed with real estate, still
telling everybody from themountaintop how awesome real
estate is, but still like feelstill like.
I'm the only one on thatmountain screaming to myself,
but slowly starting to show, um,I think, uh, people, it's kind
of like best requirement or thatuh see me, don't, don't, don't

(01:10):
tell me type of deal.
So now that they're starting tosee kind of the fruits of the
laborers, even the good and badI've had some some uh, you know,
crazy, crazy stories when itcomes to contractors and things
like that but with it stillworking out, I think now those
guys kind of understand, uh, thevalue of real estate even now.
I mean, you see the stocksmarkets right now, man, and, uh,
you know, I'm sitting in thecorner and they, they, they

(01:33):
chipper and I'm like, hey, guys,it's all good, man, we're good,
you know.
So it's been a fun last coupledays just kind of poking fun at
those guys, and now they'reactually understanding it.

Speaker 2 (01:45):
So let me ask you a question.
So after your first deal, howlong was it before you got your
second deal?

Speaker 3 (01:51):
Actually I got my second deal the day I was
closing on my first deal.

Speaker 2 (01:57):
I hear a lot of feedback.
I'm not sure if that's thebackground noise.
Yeah, that's what I was justtyping.

Speaker 4 (02:00):
I said I don't know who's got the background noise,
but if you're in your trucklistening to this, it might be
pretty well.

Speaker 2 (02:07):
It sounds like a chimes from a Hindu temple.

Speaker 3 (02:10):
Okay we're good now.

Speaker 4 (02:11):
Okay, that's what I was going to say.

Speaker 2 (02:13):
Yeah, of course I mean the same mind, man, great
mind, I think, like, of course,god, my head is shiny as shit,
good Lord.
So, tony, the first deal andthe second deal.
How long did it take you tocomplete?

Speaker 3 (02:26):
those two deals.
So actually my first deal was aquick, quick deal, that kind of
I didn't have to even doanything.
I've already had tenants inthere and I just kept the
tenants.
My second deal was a fullrenovation.
So that was a true six monthsrenovationations, start to
finish, kind of everything wasnew, you know, new electric, new

(02:49):
plumbing.
So that was one I wasdefinitely happy to kind of get
my feet wet because it was kindof like, you know, I had to redo
everything.
So I learned a lot.
But even like, my third dealwas a full renovation also.
So actually every job has sofar has been full renovation.
So this will I'm finishing upone now, um, right now, and this

(03:10):
will be my third fullrenovation, um renovation.

Speaker 4 (03:13):
These are all, all Reynolds.
Correct, correct, yeah.

Speaker 3 (03:17):
We, we, I haven't done any flips, Uh, kind of like
that burr method.
I feel like I'm pulling outquite a bit of money, um, when
I'm doing the, uh, the burrmethod, and then I'm using like
a dscr loan for the first timeon this last one.
So I really like those dscrloans for sure.

Speaker 2 (03:33):
Yeah, over the over the two years.
How many have you done so far?

Speaker 3 (03:36):
um.
So over the two years this willbe number six.
This will be my third uhrenovation.
I've got two more fullrenovations scheduled right now,
so that's awesome man,Congratulations.
Thank you.

Speaker 4 (03:49):
Thank you.
Yeah, I mean that's.
That's pretty sweet Cause Iremember I don't remember all
the details, but two years agois a long time but I remember,
like I'm on Google street view,like going through some of the
areas you were looking at andlike we for you, like going
through some of the areas youwere looking at and like we're
we're talking through it and youknow, obviously, this, this
game has stayed the same, but alot of the variables have

(04:11):
changed over the last two yearsfor sure, especially over the
last three to five years, likewith pricing and whatnot.
So one of the constant or one ofthe common things I hear is
like, oh, I don't, I don't knowhow to rehab.
I don like, oh, I don't, Idon't know how to rehab, I don't
know how to do this, I don'tknow how to do that.
And you know, from what Irecall, like the entrepreneurial

(04:33):
spirit you've always kind ofhad that you were doing
something before this.
I don't know if you still are,if you want to mention that, but
you kind of have to get like 80percent of the way there and
then just jump Right.
So did you have any experiencein contracting or managing
contractors, gcing that type ofstuff?

Speaker 3 (04:53):
No.
I definitely jumped off the offthe bridge and kind of built my
hair on the way down.
It was definitely a learningexperience, even my last deal I
lost money on my contractor tookmoney from me, skip town.
I had a roofer on this.
This was the same deal A rooferskip out on me, left town.

(05:17):
My plumber electrician guyskipped out on me, left town,
came back, finished it.
Now I'm still chasing issuesfrom the plumbing electrician.
I have to bring somebody elsein and do that deal.
And the crazy part of it isstill probably my best deal,
which is insane to even thinkthat all this stuff happened and
because of the rents and thingslike that, it still ended up

(05:39):
being my, my, my biggest dealbecause of the added value that
I added to it and what itappraised for Can we.

Speaker 4 (05:47):
Go ahead.
I was just going to say do youmind if we walk through that
deal kind of like start tofinish and share as much as
you're willing to share?
But I think, especially folksthat were in your seat like two
years ago, that information issuper helpful for them.
Like two years ago, thatinformation is super helpful for
them, like okay, how, how much?

(06:08):
This, that, like what, whatmakes it a great deal?
And understanding, everybody'sgot different parameters for
that.
So if you would just kind oflike, uh, where did you find it,
how did you fund it, and kindof what it looked like until you
refined it out.

Speaker 3 (06:24):
Yeah, so so that one was actually.
Uh, I've been kind of latelyI've been doing the you know
what they call like five five,five, where calling new, five,
new real estate agents,following up with five and then
texting five the same five.
So I've been.
I was kind of in that mode ofhey, just trying to game up as
much as I can from differentsources.

(06:46):
And this was one that came backon the market.
It had been on the market for alittle while, went off and then
came back on.
When I contact them the guy wasactually in the middle of a 1031
exchange, so he was pressedwith time.
So once I found that out, Iknew I was, you know, I was
going to kind of low ball alittle bit to kind of see where,

(07:07):
where things were, and I and Idid.
I think they were originallyasked in, I want to say like one
10.
And I think I came at I came atoriginally 75, ended up talking
down to 67.
So I ended up getting that onefor for 67,000 and it needed a

(07:27):
lot of work.

Speaker 2 (07:27):
Actually, aaron, that was the one that we looked over
when I was on that live and wekind of went over that that
property Were there any, anyunexpected things pop up in this
deal or any other deals whereit's like I didn't see that
coming other than the thecontractors going MIA.

Speaker 3 (07:44):
Yeah, I think the contractors has been my biggest
battle.
I'm still kind of a nice guy.
I feel like I see the good ineveryone.
So I'm like why would this guyscrew me?
That doesn't make sense.
He told me he's going to do andhe hit me with the guy.
He hit me with the guy stuff.
He was a preacher, he hit mewith that, so I was hook line

(08:06):
and sinker man and he, he got megood, but um it.
For me it was a learningexperience because I felt like I
would have kept doing thatprocess.
As far as giving, giving somemoney up front, um, because he
was like I, I need to get some,some materials and I'm I'm happy
it happened on that one becauseit was a, it was like 2200, but
to me it was still asignificant amount of money
where it stings so much but notenough.

(08:27):
Where it took me out, which Iknow for a fact.
If I would have got a higherdeal or somebody would have
asked for 50% down, I would haveprobably done it because it
worked out that time.
So I'm happy that it didn'twork out for me on that one,
because then I was able to putthat in my bank and say that'll
never happen to me again.
And then how do I avoid it fromhappening?

(08:48):
Started kind of researching,reaching out to people and
realizing I'm not supposed toget money up front, you know.
So now like things like I'mpaying for mall materials and
then it's like hey if you can'tfront any of your guys to work,
we probably ain't can't worktogether.
Like I'm not your guy, youcannot hold a budget enough to
pay your guys until you're donephysically done with the work.
I'll pay you the same day, I'llpay you as soon as you're done,

(09:11):
but to make sure that we'reactually done with that scope of
work before any money isreleased.

Speaker 2 (09:19):
I got a question for Tyler.
It's a two-part question.
The first part is can youexplain the DSCR loan?
Tyler does them.
Second part is net 30, net 60,net 90.
What are those, Tyler?

Speaker 1 (09:34):
So, dscr, you're basically taking the rent and
you're going to use that inrelationship to the mortgage
payment and when you divide thetwo, the ratio should be one or
greater.
So if your mortgage, if yourrent, is a thousand dollars and
the mortgage payment is athousand dollars, that's a
one-to-one ratio, right?
Anything um below that, yourinterest rate is going to go up

(09:58):
dramatically, your loan to valueis going to be limited and your
costs are going to be increased.
Anything above a one ratio like, let's say, your rent is 1500
and your mortgage is a thousandthen you have a 1.5 ratio.
You're going to be able toborrow more in relationship to
the loan to value of theproperty and then your interest
rate should be lower, costshould be lower.

(10:19):
So that's about as that's for atruck fireman, if you're
listening.
That's about as simple as I canmake it.
And then, what was the secondquestion?
The net 30, 60, 90.
Yeah, and you're referring to,like paying contractors and
stuff like that.
Yeah, so you know, usually it'sfrom my understanding it's if
you're going to do something,you have 30 days to pay the bill

(10:41):
from, from date of completionwhat I was going to ask.
Right, that's what we'retalking about, and then 60 and
then 90.
What I was going to ask Tony ishe kind of already answered it
is yeah, I do the same thing.
When being virtual, it forcesyou to have those policies.
So, yeah, I never would pay upfront, I would.

(11:02):
Also, you touched on somethingthat's hugely important.
We have to remember contractorsare also used to getting
screwed too right, they're usedto not getting paid on time.
They have guys to pay.
If we don't pay them on time,they still have to pay their
guys.
Their guys don't care and it'sa very stressful situation.
So if we're going to do it thisway, we have to respect that.
And if we tell them, hey, youwill expect it on Friday and

(11:23):
you'll get paid on Friday, youhave to pay them on Friday,
otherwise it's it's.
We're just as guilty as theyare.
And then one more thing.
Then I'll shut up.
You mentioned, mike that Ithink I'm sorry it was Tony If
you don't have the funds to doinitial work, if you can't even

(11:43):
afford your own materials as acontractor, probably a red flag,
right.
And if not, I'll go with you,I'll buy the materials, or you
call me at Home Depot.
I'll talk to the Home DepotProDesk.
I want to know what they'reordering.
And then I've done that beforein Idaho.
All the time the ProDesk wouldcall me.
After a while they got used totalking to me.
We'd go over the list.

(12:04):
I'm like, yeah, that's what Iwant.
What's the cost I charge it?
Everything's in my name andthen that way, if anything
happens, it's not theirmaterials, those are mine.
They just stole from me, right?
And I have a record of it too,so I know exactly what I paid
for.
It's all itemized.
And if any miscommunication,I'm like no, you were there, you
checked out, and and those arethings I've done to alleviate

(12:24):
that problem.

Speaker 2 (12:27):
So the net 30, so the net 30, net 60, net 90, and
even more.
That's more of a commercialthing.
I've seen it in residential butI've seen it more in commercial
and government contracts whereonce the completion of the work
is done, they have to get paid.
In that 30, 30 days, that 60,60 days, that 90, 90 days, like
Tyler said.
But I've seen like governmentcontractors have to wait up to
six months, to nine months, evena year, especially back after

(12:48):
the 08 crash, to get paid.
Um, so in if you give them yourcontract and it has in there
the payment parameters this isfor anybody listening, not just
you, tony um you can set theparameters of when he gets paid
and most contractors won't donet uh 30 just because they are
a week-to-week paycheck, so theydepend on that week to get paid
for that job.
But if you can find ones thatare more focused on the net 30,

(13:12):
net 60, 90s, then you canprobably build a better
relationship with them and theyknow to expect the payment
process.

Speaker 4 (13:20):
Yeah, I mean I know of no, let's put it this way,
none of the contractors I'veworked with over the years have
net 30, 60, 90.
Some of the supply houses doLike, if I'm going to order 45
windows, a lot of those types ofplaces you have like net 30.
But I don't expect anybody togo 90 days without getting paid

(13:42):
type thing, maybe again in thosebigger government contracts or
larger type of scenarios,absolutely.
But I mean we're talking mostof the time we're dealing with
some of these guys or subs thatif you don't pay them they don't
have enough fuel to put intheir truck to get home for the
day, let alone come back.
So it's a balancing act and Ihave all of these same types of

(14:05):
policies per se.
But there are times where Ihave to like, not wiggle on them
, but like you know what I mean,you can't expect these guys to
operate like they're building abridge for an interstate.
They're just not that caliber.
They can't manage that kind ofjob.
They can't manage theirfinances kind of job.

(14:27):
They can't manage theirfinances.
Um.
So, but yes, giving too much ofa deposit up front, big red
flag.
Once I have a little bit ofrelationship, um, I will.
I do do deposits, but like Ijust had an example of a I had
to do a roof and fascia repair.
The guy said it was going to belike a two or three hour job or
with material, metal and stuffis like 600 bucks.
He wanted to know if I couldprepay for it.
I'm like absolutely not.

(14:48):
Um, he's like well, I have tobuy this metal.
I'm like cool, I'll pay youthat day.
And I used to do it to whereall the invoices were due by
lunchtime on Thursday so I couldapprove them Thursday afternoon
and they could all be sent outFriday.
That turned into we had tomassage that one too.

(15:08):
But like you do not need to beprepaying for a $600, basically
maintenance call If you do, likeTyler said, that should be a
red flag that this dude can'teven manage his funds enough to
come do that.
But this guy got it done to hiscredit and I've given him a job
here and there afterwards.
So each one a little bit higherin dollar value.
So yeah, the contractor gameman, it's not for the faint of

(15:31):
heart.
So whenever this happened, Ibet the guys at the firehouse
were like see, tony told youthat real estate thing.
It's a scam.
It's a scam.
You need to.
You need to get in here andwork that OT Right.

Speaker 3 (15:44):
Or maybe it was just me.
No, that was a lot of, but forme I was super transparent and
I've always sought out to besuper transparent with them
because, again, I'm wantingthose guys to eventually either
get in or become private moneylenders.
So for me, it's super importantto where it's like hey, I'm not

(16:04):
just going to tell you whenthings go.
Hey, I'm not just gonna tellyou when things go good, I'm
gonna tell you when things gogood and when they go bad, so
you know when things do go badon projects that maybe they got
in, it's not like well, I'venever seen.
I didn't see this coming,because you didn't mention any
of this.
So I've been super transparentand I feel like it's again.
I feel like it's workingbecause, um, even once the

(16:25):
issues that I had and that, eventhe issues that I continue to
have with that particularproperty, where you know I had
to do quite a bit of uh,upgrades to things that should
have already been done uh, forme it was just a again a
learning experience too for me,being super transparent and like
, but gosh, it's still my bestdeal, you know, so it's been.
I've been super, super honest,like, but, guys, it's still my

(16:45):
best deal, you know.
So it's been.
I've been super, super honestabout that like it's still my
best deal at the moment, so I'mgood with that so is it
increasing?

Speaker 2 (16:54):
sorry, tyler, go ahead, I'll go.
I was gonna talk about netwealth, but go ahead oh no, it's
gonna be a quick question.

Speaker 1 (16:59):
So you you're saying that deal and that's I just want
to clarify.
So, people listening, that'sbecause you bought it right,
correct?

Speaker 3 (17:05):
Yes, yes, because I bought it right and there was a
couple kind of later ones thatsold, so the ARV was higher than
we expected.
Just for instance, we bought itfor $67,000.
We put $65,000 into it, we wereall in for $165,000, and it

(17:26):
appraised for $210,000.
And so again and that was withagain a lot of the mistakes that
I made where I had to pay extraLike we should have.
I mean this would have been.
I mean I'm talking about a homerun without all the issues that
we had, but again it ended upbeing being a really good deal

(17:46):
and one that, again, I learnedso many things on because I had
to, you know, contact so manycontractors to walk in.
Even most guys were not evenwanting to touch it because it
was just so messed up.
So that's why I ended upletting the one guy come back,
kind of finish.
And again, like I said, we'rewe're still chasing.
I literally just had to replacesome floors yesterday and these

(18:08):
are.
They were all.
The whole house was brand newLVP flooring and I had to
replace the kitchen because itwas littered on a slope and the
guy had to rip it up and levelit out and do some shoring.
It was like way more stuff thanit, just a fix.
But again I'm, you know, I'mtelling them guys like we're
still in the green, so I'm goodwith this learning experience.

Speaker 4 (18:30):
Hey, don't feel bad.
I just redid a bathroom floorthis morning that was rehabbed
less than a year ago and whenthey pulled it up, the cardboard
box that the LVP came in waswhat was shimmied up in the
bathroom.

Speaker 3 (18:44):
That's literally what like.
That's what was undermined.
He used a bunch of the boxes toshim it up and a couple of the
dips and he he swore it was fine.
Wow, yeah, can you see that?

Speaker 4 (18:59):
uh-huh I mean it's like.
So it is what it is, man,that's just part of the game and
, uh, short of me being on siteor doing the work every day
myself which is not feasiblelike you'll have this, and you
know I try not to throw the babyout with the bath water Like.
But when you find a goodcontractor, it's worth keeping
them, even if it costs you alittle bit more, because they

(19:20):
will cost you less in the longrun.
The problem is finding them,you know.

Speaker 2 (19:25):
Yep.
So what?
How are you finding yourcontractors and how are you
finding your loaners?

Speaker 3 (19:30):
Man, you know I actually I've been doing the
Home Depot thing, where I'mgoing to Home Depot early in the
morning so I go, I usually goto the gym pretty early, so I'll
just hang out at Home Depot,kind of walk around and talk to
whoever and everyone who willgive me their numbers, because
what I've seen like most of theguys who have good contractors
are not willing to share, whichis fine, but um, so I've kind of

(19:53):
had to to uh kind of trial anderror and then what I've been
doing, um to like especiallywith the last two guys that I've
got, that's been pretty solid.
Um, I popped in on a couple oftheir projects so I said, hey, I
like I got quite a bit of work,but I need to see, like you, I
don't want to see pictures andvideos that you send me, I want
to see you actually doing thework.
So you tell me what kind ofwork you got.

(20:14):
I'll just pop in kind of see howyou and your guys operate and
then you know, we'll go fromthere and I said I'll keep you
as busy as you want to be, butwhat I won't do is allow someone
to take advantage of me and I'mpretty up front.
He's a mexican guy.
He said, amigo, you, you hardwork for I said no, I'll pay you
on time.
But again, you know there's.
There's things in place now toprevent things that happened to

(20:37):
me before, that has tainted mewhen it comes to contractors.

Speaker 2 (20:41):
So one of the things you mentioned was pictures and
video and I like pictures andvideo just to prove the work was
done.
Tyler had an issue one timewhere the guy was taking the
right angle of the pictures tomake the work look like it was
done but it wasn't completed.
In Boise, Tyler, you want tosay that real quick.

Speaker 1 (21:03):
If you can find the unmute button, maybe there we go
.
Yeah, sorry, they're doingbrush clearance behind my house
because I live in the urbaninterface.
Yeah, so that actually wasn't ahouse that we bought.
We were looking at it to buy itbecause in another investor was
out of state and you could seethe guy had completed the work
so you could take pictures andit would look done.
But if you look like rightbehind, where somebody would
stand for the photo, it wascompletely not finished and so

(21:27):
we were looking at it and me andmy buddy, kale kale, was doing
acquisitions for me.
We're like holy, like, holy cow, no wonder.
And then we talked to the agentand the guy said contractors
took his money.
It was all the money he had forthe entire rehab and he
couldn't finish it.
So I always do videos and I do360.
You got to do the whole room,the whole house, the whole
walkthrough and they'll andthey'll start to push back after

(21:48):
a while like oh, don't youtrust me?
We've done x amount of projectstogether.
I trust you, but I still wantto see the videos.
And yeah, it's, it was.
I was, we were laughing, but Idid feel for the person, because
I'm like dude if you were toget photos you'd be like, oh,
they did a pretty good job, butimagine, like a diagonal line in
a living room, for example, theflooring was done to that side
and then nothing else had beendone.

(22:09):
I'm man the amount of effort ittook to fake this.
Why wouldn't you just completethe work and do the job
correctly?
But it was, yeah.
So always videos and photosfrom all four corners.

Speaker 2 (22:21):
Yeah.

Speaker 3 (22:22):
You have 20% down.

Speaker 2 (22:23):
I'm going to finish 20% of the work.
Sorry, pal.

Speaker 4 (22:26):
It is just mind blowing, right, how far some of
these folks will go to like keepup with their story.
So it's not just us.
My buddy in philly has awarehouse down in south carolina
and he said the same thinghappened with the on-site
property manager and he was evenfacetiming him and this dude
still got one by on cleaningthis warehouse out.

(22:47):
But anyways, one, one morepoint and then we can move on
that I was going to say aboutcontractors one thing, um, for
those listening.
But I've been able to kind ofsee since we've moved into the
lending space is dealing with abunch of different investors in
obviously slightly local regionspread out a little bit.

(23:07):
But you kind of get to see whothe good contractors are and
like who these people are usingand you can kind of tell a lot
based on the way they kind ofshow up and present themselves
and manage the project.
So I'd say all that just sothat maybe you can hang out at
Home Depot from six to eightwith Tony and drink coffee.

(23:27):
But you might want to call,like your local hard money
lender or real estate investorgroup and just say like hey, I
got a project, you know, inCleveland park.
Do you know anybody that worksin that area and cause?
If the lender knows you mightuse them?
They're obviously going to saylike, hey, you might want to try
this guy or that guy, or ifthey mentioned a name you might

(23:48):
just go.

Speaker 1 (23:50):
That's usually a no, so do you look up on the state
board um tony when you're whenyou're looking to hire somebody,
like the contractors board I?

Speaker 3 (24:01):
didn't even know yeah .

Speaker 1 (24:03):
So I would always find out who like who.
Your state licensing authorityis for contractors.
Some of them will have like anoverall, some will have, like
you know, plumbers etc.
And I go through there all thetime and make sure you look up
the person, not the company,cause what happens is sometimes
contractors will just startcreating companies after they
they get a judgment or somethingagainst them.
They'll change.
It's like X, y, z, plumbing,then it's ABC and all those

(24:26):
things.
So, um, anybody listening inYouTube?
I think it's a good thing.
I started doing it after awhile.
I look up every single sub.
I look up their name, theircompany name, anything I can
find.
So at least to your point, mike, like if I'm giving it to my
private money lenders and theyask me or something happens, I
can say, hey, here's theirlicense.

(24:46):
The day that we funded, Ipulled it, everything was fine.
I pulled it, everything wasfine.
Just to be transparent.
I was not like, oh, how did younot see this?
It's like, well, I dideverything I could.
There's really so much duediligence, we can do so just a
quick tip.

Speaker 2 (25:01):
OK, let me tell you something that that happened to
me recently.
So we had Diana Khan on here.
She's a lawyer based out of theBaltimore area.
I'm using her to sue one of mycontractors.
So he he did a roof for me andthe true to size old wood versus
the three-eighths they put on,there's a dip in the roof now.
So now it looks like the edgesof the roof flare out, um, so
it's not a flat plane againstthe whole thing.
So the outside edges will getbeat with weather more because

(25:24):
it's not a flat plane.
They ripped out the j channel,which is a piece that holds in
the um, the part of the, thesiding.
Uh, they did put a diverter forwater.
They did a bunch of damage,bent the gutters and a whole
bunch of other stuff.
So when the work was done, thecontractor was like oh no, you
can't come after me, you have tocome after my sub.
I was like, well, who completedthe work?

(25:45):
He's like, oh, my sub did.
I was like, well, you didn'ttell me the sub was going to do
the work.
I thought it was your company.
So now I'm going after prettymuch everybody under the sun
who's involved in this, from theinsurance companies to the
contractor, the subcontractor.
But that's a way.
If you hire somebody and theysub out the work, you have to

(26:06):
recognize that they're onesubbing out the work, because a
lot of times they don't tell you.
Two, make sure they have theirinsurance and license, like to
Tyler's point, because a lot oftimes you just don't know what
these people are, who they are,what they're doing.
So that's the way I see a lotof people do is the middleman
get the contract and sub it out.
Get the contract, sub it out.
That's why they make themiddleman money, but you don't
know who you're working with atthat point.
So when you're asking thesequestions or who you're working
with, just make sure it's peoplewho are covered under their

(26:29):
insurance and their liabilityand their company now do you
guys only use licensed versusunlicensed um contractors.

Speaker 3 (26:38):
When it comes to all, all your deals are bigger deals
.
How does that work for you guys?

Speaker 4 (26:42):
depends on what it is .
So, like, um, I use the storageas an example and like one of
the guys I call him a facilitymanager that manages the one
location like boots on theground, if you will, they have a
lawn care and like handymantype business, I don't really

(27:03):
need to go hire a licensedcontractor to clean out a
storage unit, right?
If I'm sitting there doingelectric, hvac, plumbing, yeah,
I go with somebody that'slicensed and insured.
If it's somebody that's goingto swap out a vanity, okay.
But like, I don't mess aroundwith electric or stuff like that

(27:23):
, um, there's, there's somethings I think it doesn't matter
whether they're licensed.
Um, like laying carpet, I don'tthink who cares, right.
But if they're going to bedoing any of the mechanical
trades or something along thoselines, that's where I pay
attention.

Speaker 3 (27:41):
But what about permits?
Also Like is that do you alwaysbutt that up with a permit?
Any kind of electric, plumbingor HVAC stuff?

Speaker 2 (27:50):
We're being video recorded, so yes, so I'll speak
hypothetically.

Speaker 4 (27:59):
There's a municipality near me where they
want you to pull a permit if youreplace three or more bathroom
fixtures.
So if I replace the vanity, thetoilet and the shower, they
want you to pull a full plumbingpermit for that.
Well, I can, I can lift thetoilet to replace the wax ring,

(28:19):
but I can't.
I can't replace the toilet,which is that it doesn't make
any sense to me.
So, yes, I pull permits when Ifeel like it's needed, like I'm
not going to go do a third storybalcony under the radar.
Let's put it that way If I'mgoing to swap a toilet and a

(28:40):
vanity in a rental and I meanwe're not changing the floor
plan, we're not running anything, we're like just swap, swap yes
, I'll do that, buthypothetically.

Speaker 3 (28:50):
Gotcha.

Speaker 2 (28:58):
Sorry, he was great until he wasn't.
Um, he moved his stuff into myhouse after fixing it up.
I had to go up and kick him outand, uh, the work was half
decent until it wasn't samething.
I mean, he was licensed andinsured well, according to the
stuff that he gave me at thebeginning.
But, um, I agree with mike,like there's there's some places
that you can't change a tool,it out unless you pull a permit,
and I think it's ridiculous.
I think a lot of people that yougave me at the beginning.
But I agree with Mike, likethere's some places that you
can't change a toilet out unlessyou pull a permit, and I think
it's ridiculous.
And I think a lot of people,they just kind of go by what

(29:18):
their gut is Like.
Are they ever going to see thistoilet?
Are they ever going to see thisfixture?
Are they ever going to see thislight bulb?
And more than likely no.
But if you're going, as long asit's like more invasive than
you need to have somebody withplumbing insurance or or if it,
or if there's going to beanything with a gas line I
pulled.

Speaker 4 (29:37):
Definitely trades and permit Cause man.
The last thing I want to do iswake up, find out my rental was
blown to toothpicks and it wasall because, you know, I tried
to save a hundred bucks, youknow.

Speaker 2 (29:48):
I don't mess with that.
So the I don't know if you guysremember I tried to buy a
church a couple years ago, um,and I was gonna make it the
church of aaron, the.
The septic was only for twopeople, but it's a church from
like the 1780s or somethingcrazy.
So I asked the county.
I said, hey, look, I want toexpand the septic field so I can
have more than two people inthe church.

(30:09):
That's gonna make an eventvenue with a school attached to
it.
And they were like no, you know, whatever's there is there,
we're not gonna let you expandit.
I was like, well, let me do aseptic tank.
No, we're not gonna do thateither, but let me do something
else.
They're like, no, not allowedto do it.
I was like so what are myoptions?
They said it can be atwo-bedroom house.
Um, one of the buildings can bea two-bedroom house, the other
one can only be storage.
So I let the deal go because ofthat.

(30:30):
This is actually up in Mike'sMike's jurisdiction on Drummond
Road by Lingan or high school.
So the guy who came to buy itafter me, he started gutting it
before he looked all this stuffup and he got caught with his
pants down, so he ended upselling it with like half the
pews missing, half the floorsmissing, the pulpit torn apart.
So go into these things and thejurisdiction that you're

(30:52):
working in, knowing what theexpectations are and who the who
the people are.
You're like who the players are, because if you don't, then you
might get screwed.
You might screw yourself.
Tyler, I don't mean to cut youoff.

Speaker 1 (31:00):
Go ahead, bud oh no, you're good.
Uh, I was going to say yeah.
So I like I agree with them oncertain.
I'm not going to get a permitto change out like a light
fixture or something.
But to the point earlier, sowhat, I do it as I use it as um,
a higher authority.
So if we're talking aboutpaying contractors, if you get a
permit, the permit has to getsigned off by the inspector.

(31:22):
Right, so it's.
It's one more thing hey, I'llpay you and it's in my contract.
When I do it with the scope,you'll see if any permitted work
has to be signed off um, priorto me paying you.
So if they, hey, I need you topay me.
Well, okay, show me where youhad it inspected and show me
where it was signed off and it's.
And if they get frustrated, hey, it's, it's in the contract,

(31:43):
and just, it's not on me, it'son the inspector.
Go ahead and then if stuff isnot done right, they have to fix
it.
They can't complain and it's.
I use this is leverage, right,like the inspector is leveraged,
the permit is leveraged.
When you're using anunderwriter to underwrite a deal
, you should use them asleverage.
They're, they don't care if youbuy the house or not, they're
making sure that their endinvestors are deal.

(32:03):
So they tell you it's not adeal, probably not a deal, but
yeah, for the, for the permits.
I found it's one more thingthat gives me a layer of
eliminating risk and I do wantto say, granted, with all these
policies, yes, absolutely badstuff happens.
I had like a 20 000 rehab acouple years ago and run a rate
I mean, but we're just trying tolimit our risk.
So I would do it if you'rehaving issues with contractors
or if they're a new contractor,go through the permit.

(32:25):
And I can think of a couplewater heaters I had installed
and the guy said he pulled thepermit one, he did one, he did
not.
Um, there was no expansion tank.
So when he sent me a bill forthe expansion tank, I said go
ahead and pay for that yourself,because I have it in writing
that you told me you got apermit and you need that
expansion take to to have itsigned off.
And, sure enough, I had a brandnew expansion take paid for by

(32:48):
him.

Speaker 4 (32:48):
So yeah, and we'll try and get back to your rental
here.
But the last thing I'll sayabout that is you got to be real
careful about what you do anddon't do with a permit, cause
you may get this rental propertyall done and then you bring in,
say, a section eight, inspectoror this.
You know, differentmunicipalities have rental

(33:09):
license programs.
They'll sit there and realizethat this place has been
rehabbed and they have nopermits on file, and then you're
in a world of hurt.
So, just again, just thinkabout it before you go on and do
something with a shadycontractor and not pulling
permits, whatever the case maybe.
So, anyways, you this houseprice for two, 10,.

(33:31):
You were all in it for like abuck 60, right?
So you bumped your net worth up50,000 bucks, right, give or
take.
And uh, that's running out forwhat?

Speaker 3 (33:44):
Uh 2,200, um for that one Um and uh.
Piti is about 1120.

Speaker 4 (33:51):
So principles, interest, tax and insurance,
piti.
So on paper you're pulling inabout a thousand bucks a month,
but that doesn't take intoaccount management, vacancies,
repairs, et cetera.
Correct, correct.
So let's just say you're onlymaking half that.
You're making 500 bucks.
The other 500 bucks is goingtowards those things.

(34:12):
It you can start to see where500 bucks isn't going to change
the world.
But you get a couple of thoseand you start moving down the
road.
Over a course of a couple yearsit adds up right and then god
forbid you have something thatallows you to, or happens to
allow you not to work, but, um,or not allow you to work, like

(34:35):
that can help out significantly.
So it's one of those thingslike I get it, man, 500 bucks,
you're not going to retire onthat, but you get a couple of
them going.
It sounds like you do.
Yes, and this is one.

Speaker 3 (34:48):
I only put down uh% because I used a hard money
lender, so they did 100% of therenovation and the purchase
price.
So I came in a door with the20% down.
So this was, you know, for melike.
I said it was not a lot out ofpocket coming in a door just
because of me only having to putdown the 20%.

Speaker 2 (35:12):
So, tony, what about the equity position?
So I know that you refinanced.
What did you keep for equity?
What's your?
Is he got 20% into it?
25% into it?
Is it 50-50?

Speaker 3 (35:25):
Yeah, you got me on that one.

Speaker 1 (35:29):
I think he's got 22% equity in that one.
If it's worth 210 and you saidyou had 165, all in right, yeah,
that's 22% equity.
Did you pull all?

Speaker 3 (35:38):
your money out.
Yeah, we did a cash out refileon this one.

Speaker 4 (35:43):
So you got all 165,000 that you had quote into
the deal back, correct?

Speaker 3 (35:49):
We got the.
We ended up doing 65%.

Speaker 2 (35:58):
So obviously people appreciate that I've said I've
beat the drum before but, like,you invest for three different
reasons you appreciation,depreciation and cash flow.
So it sounds like you're goingto have the appreciation, you
have the equity position and youhave the cash flow.
So great.
Now you can.
For depreciation, you can writeoff the property value over the
course of 27 and a half yearson your taxes against your

(36:19):
earned income.
So for me there's a break-evenpoint.
Every property I look at, I tryto do the break-even point,
like how much can I write offversus how much I can profit?
And what's the better point?
We've had a battalion fire chiefon here before out in
California, where his wholeinvestment portfolio is based
upon depreciation, right offagainst his earned income.
So I think it's great.
That's one of the things Ithink a lot of people should

(36:41):
look at is like what?
What are the other benefits ofthis?
Um, I'm not a big depreciationguy because I just don't have
that much.
I'm not a multi, multi, multimultimillionaire where I need to
write off my, my, my incomesomehow, like, like I'm not
Donald Trump that's his biggestmove is, you know, write offs
against his to show that hedoesn't have much coming in.
So for you, I think that'sgreat man like your, your net

(37:05):
worth has gone up because yourequity position is growing and
it's good.
I mean, if you do 20 across six, six houses, and say it's a
hundred, you know, twentythousand dollars each, yeah,
that's a lot of freaking money,yeah question for you.

Speaker 1 (37:18):
So let's say that every house that you've done is
is let's just hypothetical, it's500 a month.
Right, like mike said, we'lltake the thousand dollars, cut
it in half, it's 500 a month andthen so that's three thousand
dollars a month currently on aretirement basis.
Would that replace some all ora little bit of the overtime

(37:40):
that you currently work?
If you still work overtime orprior to you doing this, what
would that cover?

Speaker 3 (37:48):
That $3,000 would cover.
I mean, right now, man,overtime shift, we're getting
about $1,000 of overtime shiftand it's pretty endless.
Right now that's a firefighter,paramedic.
So, um, right now, man, and andagain, I think you know you,
you listen to people in thereone way or another like all in

(38:12):
on real estate, quit your job,go all in and then you got the.
You know the other side.
I feel like I'm right in themiddle where I love my job, but
I I'm not immune to know likethat again.
At any point I can, I can beToss to the corner, I can get
hurt, like I know that fact.
So I'm trying to kind of godown this rabbit hole.
Hey, I really love my job.

(38:33):
I'm able to get some stuff doneat my job.
I truly enjoy going to work, Itruly enjoy the guys.
But I've got this, this otherpiece where it's like it's
starting to pick up steam, andI'm enjoying that process also.
But the fire department allowsme to take more risks that I
know I wouldn't take if I didnot have that safe job.
I know for a fact I would notbe in real estate if I, if I did

(38:57):
not have the fire department,because of my risk tolerance,
like I get you know.
I get in these moments whereit's like I know the job is
there, so I'm willing to risk alittle bit more on the front end
.
So I've been really fortunateenough to have this career that
has allowed me to do something Iknow for a fact I wouldn't be

(39:18):
doing if I didn't have that job.

Speaker 1 (39:21):
Nice, yeah, and that's.
I was just thinking, guys, likethinking ahead.
If it replaced all yourovertime in two years, let's say
that you worked where it wasthree overtime shifts a month
for your whole career.
You've now replaced that income, so when you do retire you're
not really feeling a squeeze.
I don't think people think thatfar out and they get used to
the overtime and, oh wait, I'mnot working seven overtime

(39:43):
shifts a month, so I'm $7,000short in the whole.
So I think it's cool In twoyears.
I mean that's pretty powerful.
Like you've replaced threeovertimes a month in two years,
which all of us overtime isgreat, man.
I mean it's huge.
And to see that, I mean let'ssay you worked four.

(40:06):
Now you got to work one a monthand you don't have to change
anything else with yourlifestyle.
I think that's why I love usingovertime when we talk about
real estate in the firehouse,because everybody, that's why we
work, it's for extra money.

Speaker 4 (40:15):
And not to mention like the overtime.
It's like a one and done Ifyou're taking that money and
then bankrolling it intosomething like this man.

Speaker 3 (40:32):
it's like that thing's going to feed you for
years to come, not just for thelength of time that thousand
bucks lasted, and for me it'sbeen, it's been a understanding
that you know me, me and my wifebeing on the same page, just
like, hey, we're not planning onspending any of this.
Real estate funding is strictly,you know, I'm trying to do only
do 25 and out and not have todrop Um and then transition unto
becoming a full-time realestate investor, which then

(40:52):
comes with all the otherbenefits that come with being a
full-time real estate investor,like the true depreciation,
where you're able to do kind ofthat dollar for dollar cost with
depreciation.
So I've kind of got a plan towhere, again, the fire
department is allowing me to nothave to touch the real estate
funds, which then is going togive me an opportunity to do a

(41:15):
true 25 and out.
Or, you know, if I'm in aposition to where I can retire
early, I will.
But again, my whole goal is toonly have to do the 25 and then
be able to transition tobecoming a full-time real estate
investor.

Speaker 2 (41:29):
Tony, are you a medic ?
I am.
We got two paramedics on here.
I've noticed that in talking tofirst responders police and
fire a lot of guys who are moremotivated are the guys who have
more education, and obviouslymedics have more education than
EMTB.
You know, some of us knuckledraggers are just happy being a

(41:49):
knuckle dragger, and then guyswho promote, like officers, like
Mike.
So the guys who have moremotivation to educate themselves
.
They seem to go further withstuff like this than somebody
who's just comfortable in aposition.
That being said, like peoplelike me, I have no desire to
promote.
I just, for, that being said,people like me, I have no desire
to promote For various reasonsI'm not going to get into.
I just don't want to promote.
I'd rather focus my energy onthings that I enjoy and make

(42:10):
more money on the side.
My hat's off to you.

Speaker 4 (42:15):
Mike, I'm sorry to cut you off.
I forget what I was going tosay.
I was going to say how greatmedics are.

Speaker 1 (42:20):
You just wanted to say that.

Speaker 4 (42:22):
Absolutely.
I'm just a medic helper and I'mfine with that.
Oh, I know what I was going tosay.
So, like you're talking aboutthe grand scheme of things, 25
years, you know the and I'm withyou, man, like there, for a
while I thought you had tochoose.
Like you either, like you hadto do real estate investing
until you quit your job, likecause, that's what the dream

(42:42):
everybody sells.
And uh, you know, I wrestledwith that for a while until I
just kind of like made up mymind that like no, it's
important to me personally tohit that retirement date and
then, whatever I do after that,that's up to me.
Uh, and then you get within youknow eyesight almost of the
finish line, and then you get awild card.
So that that's what happened tome as of right now.

(43:06):
And it's like dude, what if Ididn't have anything besides
being a fireman for the last 18years?
Like um, it's just superimportant.
You never know when that wildcard is going to get dealt to.
Have something, I don't carewhether it's real estate, it
could be woodworking, 3dprinting, I don't care, stripper

(43:26):
, it does not matter.
Have something, um, go driveuber.
But I think the overtime istantalizing to a lot of guys,
like that's how they subsidizetheir lifestyle.
And then, god forbid, overtimegoes away and I think anybody
that worked during like 08, 09and 10 kind of gets it.
A lot of guys don't?
Um, it's, you got to havesomething and the last three

(43:51):
months have been a rollercoaster, but knowing that, god
forbid, like they say, hey, man,you're never going back to full
duty, which I don't thinkthat's the case.
This is just me playing worstcase scenario in my brain.
Um, like how to tyler's pointhow are you going to provide for
your family?
Like, I don't know, I'll figureit out.
I'm I've always beenresourceful.
I may not like the time ittakes to get there, but at least

(44:14):
I already have something goingthat I don't have to just sit
here and, like you know what Imean.
Like so I think it's zero, youknow doing something, and to see
how far you've come in twoyears is pretty impressive man,
so congrats, I appreciate itwith your help.

Speaker 3 (44:29):
With your help, I know for a fact, I wouldn't have
jumped off that bridge.
Man, you, you made it, you madeit feel easier.
You made it feel easier for meto make that decision.
As I am a one, I'm anoverthinker too.
I cannot stay focused on onetask.
So, uh, I know for a fact thatI would have probably went down
another rabbit hole.
Uh, you know crypto orsomething crazy, because that's

(44:50):
just how my mind works, right.
So it's like this has been thelongest I've stuck with
something.
Um, that's like this, that mywife is like oh, this is not a
fad, because anything I bring toher, she's like oh, he'll get.
You know, this is the fad.
We'll see.
In of weeks he'll be talkingabout some other little thing,
but now she sees this, she'slike oh, this is this, is this
is you, this is your, yourpassion.

(45:11):
And then you know what I'mdoing within those walls of my
rentals, you know, are bringingsome other different passion
stuff.
So and it's been a good ride II'm hoping more and more people
see the blessings that can comefrom it, also knowing like, even
with the worst case scenarios,you see what real estate is

(45:31):
doing.
It's like how can you not seethat?
For me, it's just like that'swhere I struggle.
It's like how can you not seewhat I'm seeing?

Speaker 4 (45:42):
But again I've got my blinders on so I've had to
relax about that a little bit.
So you you mentioned within thewalls you're doing some things,
so are.
Have you continued with some ofthe uh, basically not halfway
house but like substance abuseor children in need, for lack of
a better term?
Can you just touch on that?

Speaker 3 (45:59):
Yeah.
So right now we're doing mostly, uh, homeless.
So we do home people who wereeither homeless or chronic
homeless and then we basicallytry to provide a safe house to
kind of get them into a bettersituation.
You know and we can talk aboutthat all day because just with
the, I'm kind of over thebureaucratic stuff of you know,

(46:21):
I'm wanting true change and mostof both sides are just wanting
to kick the can down the road.
When it comes to theseorganizations and the money that
these organizations are getting, it's just amazing to me to see
how much money is being pumpedinto these different programs
and year after year after year,we pump more money and year

(46:43):
after year after year, thingsare getting worse.
So I don't think it's a partisanissue.
I feel like it's where theyknow education.
I talk about and stop me if I,because I'm kind of on this rant
700 credit scores.
So I say, if we're not willingto go after education, getting

(47:05):
them into some kind of tradeschool or college and then work
on their actual credit score,right, and what does that mean?
How many credits?
How many $700, I mean 700credit score areas.
You see, rioting, doing badthings, you see, you know
poverty, like how many 700credit score areas do you see?

(47:28):
So there's got to be somecorrelation with what comes with
maintaining a good credit score.
You have to have financialliteracy, which is, for me, is
number one, and if we're notgoing to tackle financial
literacy, don't tell me youdon't want to help someone or
help kids.
If we're not going to tacklethat.
That's just what I've seen timeand time again.
They get a dollar, they spend adollar and it's mind-blowing to

(47:51):
me how many educators andpeople you see, yeah, we need to
have financial literacy inschool.
It's like why don't we have it?
And no one can give you ananswer.

Speaker 2 (48:01):
You know, what's crazy is I actually offered to
go to my alma mater and teach um, either house presentation or
teach some of the kids, whetherit be underprivileged or
athletes or somebody who justwants to be involved.
The bureaucracy and thepolitics that go along with
something like that areastounding.
It's like, even if I want it,this is, this is a different,
obviously different area thaneverybody else, because
everybody's gonna be different.
But when I was like, hey, I'mhappy to come talk to them and

(48:24):
they were like, well, you gottaget you know background check
and you gotta do this, you gottado that, I was like, look man,
you guys can hold my hand whileI'm standing on stage.
I, I could.
I could care less.
I'm trying to help the kidsbecause a lot of stuff that we
learn as first respondersbecause first responders
generally come from blue collarbackgrounds we don't know this
because we're not sought this byour family and our friends,
just because it's not theenvironment that we have.
So it would be nice to havesomething like this to your

(48:45):
point set up to, where they caneducate themselves.
But knowledge isn't power.
Knowledge and use is power.
So if we don't know how to, usethe information that we're
provided, then it's going tostill be right back at square
one.
So what's the point?
You're still not playingMonopoly the right way.

Speaker 3 (49:02):
Again, you're going to pay now, pay later.
What does that mean?
For me it's we're going toeither help them to show them
how to fish, to where they'reputting into the pot, or they're
going to take further pot whenthey can't work and they're
going to the hospital and us, asfirst responders, are taking
them to rehab facilities andthey're going in and out the ER
and they can't help themselves,like they're going to always get

(49:23):
some help.
Why wouldn't we want to givethem that on the front end to
then help on the back end?
That's just my opinion and kindof what I've seen is where,
again, most of all the guys inour, in our place, I was like oh
man, I'm gonna get them in, I'mgoing to give them education,
I'm gonna help them.

(49:45):
It's like you can't even try toimplement those things because
one, if they make any kind ofmoney, they get off of all their
substance that they're gettingand they're like why would I
give up my housing, my foodstamps, my rights to try to do
better, when I know I'm in amental state that I'm not really
in that position to make moremoney?
So I'm going to just maintainthis and it's like well, that's
the issue, right there.
And again, for me it's not apartisan issue, it's both

(50:06):
parties are doing the same thing.
To me, and it's just mindblowing to be in these positions
and not see real change.

Speaker 2 (50:14):
I think we're also in a position all of us who are
first responders we're in aposition to see things from a
different perspective becausewe're directly involved with
these people.
Like I'll go have aconversation with somebody who
has five or six kids because sheknows how much she gets per
kids in food stamps or EBT orhousing whatever it might be
subsidized housing.
Or I can go talk to somebodywho's decided to be homeless in

(50:35):
Washington DC instead of SouthCarolina, because they get a
phone, they get a stipend everymonth, they get more benefits
here than if they were somewhereelse, so they're registered
homeless in, you know, say,washington dc.
I think it's crazy.
And the same thing goes forlike when you, when we have a
lot of these, um, illegalimmigrants or it doesn't even
matter who, that doesn't matterspanish, spanish, asian, middle

(50:56):
eastern, it doesn't matter, theyknow the system coming in here,
because the people who theyhave here are teaching them to
come here.
Hey, hey, go to this state,make this your residence.
You're going to get this muchmoney per kid, per blah, blah,
blah.
And they live in that realm.
Which is why, when we go onthese Section 8 calls, we see
these Lamborghinis and 72-inch80-inch TVs and Rolexes on their

(51:18):
wrist.
I don't know if they're real,obviously, because I don't have
a Rolex, but we see this trend.
So it's kind of like okay, whatare there's something, there's
something missing here, like,what are we?
What are we missing?
What's not being implemented?
That needs to be implementedand that's where Elon Musk comes
in, Go ahead.

Speaker 1 (51:32):
That's like Wendell, Like we had Wendell on Aaron and
I got to talk to Wend kids toincrease your subsidies and he
was like no, we have to beteaching them what we're
learning.

(51:52):
So he said he makes sure.
He said he goes back to hisneighborhood and he tells
everybody.
He grew up with what he's doing.
He's always telling people whathe's doing to help get them out
of that situation and I love it, Tony, that you're doing that.
I think it's rad.
There's a guy in our departmentPapa, who I'm thinking of who
works at 16 and Watts.
He grew up in the, in the areaor a similar area, and the kids

(52:13):
know they get good grades, theycan come to the station, he's
got a box of books and he givesthem all books and I love it,
dude, I just little things likethat.
Like Aaron said, we're we'retouching the public every single
day.
We're seeing this stuff and Iknow it makes a difference
because I know those kids arelooking forward to those things.
So, kudos, I was that kid youknow, then that's the thing.

Speaker 3 (52:33):
I was that kid that you know that got some help, and
you know I've touched on itbefore.
You know, if it wasn't for theboys and girls club I know for a
fact, you know my life would bedown a different, different
path.
And the things that the theboys and girls club instilled in
me was things that I would havegot from if I had my dad around
.
That, you know, would havestill like, hey, right from

(52:54):
wrong, hey, this is how you dothis, this is how you tell your
dad, this is how you do this.
It's how you talk to adults.
This is how you talk to to togirls, like all these different
things that that they taught me.
And most kids now are notgetting that they're.
They're being taught by thepeople that they're around, so
we can expect them to want to dobetter when they're not around
people that are doing better.

(53:15):
And that's where, again, thatearly education and financial
literacy come, because withfinancial literacy, you have to
be so disciplined in learningthat stuff to where, once you
realize again, going down that700 credit score, like the
things that you have to do toget it and maintain it, like
it's pretty fail.
Proof to where, if you start towork on that, everything gets

(53:38):
better, because now you gotaccess to capital, now you are
in a position to where I can buya house and start to get that
process of that cash out, refine, be able to then use that money
to invest.
Like, most people are not goingto have that opportunity to get
that access to that capital.
It's like how you know how dowe are going to expect them to
do better.
Either we're going to help themnow or help them later.

(53:59):
That's kind of my motto.
Is that's why I'm so passionateabout kind of helping them now
model is.

Speaker 2 (54:04):
that's why I'm so passionate about kind of helping
them.
Now, that being said, justbecause somebody has money does
not make them intelligent,because I've run a lot of really
dumb rich people.
There is an article I wasreading before we hopped on here
.
I think it was like realtorcom,where somebody in Palo Alto,
california, out by Tyler, sold ahouse and in the job
description it says every everychild who's lived at this house
has gone on to an Ivy leagueschool.

Speaker 1 (54:29):
And it job description it says every, every
child who's lived at this househas gone on to an ivy league
school and it was like uh, um,oh god, I can't remember the
name of this ivy league schools,but um one of them was stanford
yeah, stanford was one of themon yale, yeah, yeah, yeah.

Speaker 2 (54:35):
So the house ended up selling for 716 000 over the
five million dollar asking point, just off of the description of
hey, live here and all thisgood juju and energy is going to
make you, you know, intelligent.
That's not how it works.
Like.
You can be from a low incomearea, whether it be a trailer
park or the midwest, or you knowthe low income place and the

(54:56):
projects in the city, and youcan still have an education and
brain power to far surpass someof these rich people.
It's just you have to knowwhere to direct that energy and
implement it.

Speaker 3 (55:06):
But you said the piece education, the education
part, that's usually thedifference in being successful
or not successful or some kindof education, and that's the
difference.
And again I feel like somebodywho is successful and not
successful, meaning the mistakethat they make, it's usually the
education piece.

Speaker 2 (55:26):
Let me ask you two more questions.
I know we're getting long inthe tooth here, so the first one
is are you going to continue tofocus on residential or do you
have any other focus?
Do you have any other goals?
Are you comfortable in thisarena now or what?

Speaker 3 (55:38):
Yeah, I think I'll be doing my first duplex here
after I finish closing on thisone I'm working on now.
That'll be my first two family.
I feel like I'll start to kindof progress from there.
But I feel like the residentialis my wheelhouse, just because
I feel like it's, you know, Ican maintain it a little bit

(55:59):
better and you know I feel likeI've got access to because I do
have some regular tenants orSection 8 tenants.
So I feel like you have morewiggle room when it comes to a
single family.
So I think single family isgoing to kind of be my, my, my
main focus, because I've got a,I've got a goal of 10, 10 to 15
and then become a hard moneylender.
It's kind of my, my goal.

Speaker 2 (56:20):
OK, that was the second part.
My question was like what'syour end goal?

Speaker 3 (56:23):
Yeah, like hard money lending man.
I need to get in that man.
I need it.
I need it.

Speaker 2 (56:28):
Yeah, the hard money lending is where it's at, man, I
just had somebody post in oneof the groups I run, the local
real estate investing groups.
He posted like I have $5,000ready to go right now to lend on
and his rate was like 15%.

(56:48):
I I was like you have no ideawhat you're doing.
Did you say 5 000?
Yeah, it was 5 000, not 50, not500, it was like.

Speaker 4 (56:51):
It was like anybody needs to replace their
appliances.
Let me know yeah.

Speaker 2 (56:57):
So I mean, tyler and mike know a lot more about this
than I do, obviously, becausethey are somebody who has been
in the arena and they are in thelending uh portion of this.
I've always been asked thisquestion like what's your end
goal?
I don't have one.
Like what's next?
Like obviously we make money inthe boring things, like we'll
get used to it and you'reprobably gonna get bored with
residential and it's going to bea headache and you don't want
to deal with it anymore, but atthe same time, like it's going

(57:22):
to put you in.

Speaker 3 (57:23):
Yeah, no, and to speak on kind of that end goal,
like I'm now bringing in myimmediate family, so like I've
convinced my sister and my momto get a place together.
So I'm trying to now start toshow them that there's another
way of operating and, just withthe little things that I've done

(57:44):
, I'm like this is the way youhave to get your own place, mom,
if you want to truly be freefrom from your job, because
she's she didn't do a very goodjob of saving.
So we're kind of now slowlystarting to try to build her up.
And I'm like this you know, thethe real estate is is going to
be your best course of action.
Unless you win a real estate Imean win the lotto, I'm like
that's you know to.
You know, win a real estate, Imean win the lotto.
I'm like that would be your twoWin a real estate or win a

(58:06):
lotto.
That's going to be theretirement for her.

Speaker 2 (58:10):
Do you have anything, mike, or Tyler, that I missed,
or Tony, you want to touch onbefore we wrap this up?

Speaker 4 (58:15):
What's the Tony?
Knowing a little bit more ofthe backstory with you, what
would you say?
Because there's a lot of guyslistening to this.
They're probably like, man, Iwant to do that, and two years
ago you were that guy.
What would you say is the onepiece of advice you'd give that
Tony two years ago?
Or the guy listening to itright now that has zero

(58:37):
properties but wants to be whereyou're at in two years?

Speaker 3 (58:39):
Yeah, Don't, don't try to do it on your own.
Um money to the people that youbelieve will give you the right
information, because you canbypass so many issues by just
being in the white rooms andhaving access to just be able to
text you guys Like I've textedyou guys on hey, what do you
think about this?
Or hey, I'm unsure about this,like that is so huge versus

(59:01):
trying to do it all on your ownand then making the mistakes and
then having to go back and, youknow, communicate with someone.
So getting getting thatmentorship is probably going to
be the difference of likesomeone who's truly successful
or struggles and can get to thatpoint but, you know, have so
many more headaches than theywould need to by just getting in
the right rooms and getting amentorship.

Speaker 4 (59:24):
Well, just to be clear, we did not tell Tony that
he had to say that.

Speaker 3 (59:31):
I understand like right now I'm pretty heavy into
the credit repair and businessfunding.
It's kind of like my, my nextthing as I'm transitioning and
I've got into mentorship andit's been like I'm I'm starting
to work on my stuff first.
I've got like a lot ofinquiries right, so cause I've
done a lot of, you know, zeropercents, and like I've got

(59:54):
family that now I'm helping, youknow, try to get their credit
in order, and it's likementorship, mentorship, and I
knew that from the jump so I wasable to jump right in to a
mentorship, bypass so manyissues of me trying to do the
YouTube university, try to learnsomething, mess it up, you know
.
So it's like I understand howimportant mentorships is and

(01:00:14):
guys, I'm telling you mentorshipwill change your trajectory of
the mistakes you make and howquick you're able to learn that
information.

Speaker 4 (01:00:22):
Yeah, you're paying for speed.
There really is what you'redoing.
You know, I've always had thebelief and I shouldn't say
always I had the mindset shiftLike now I view paying for
mentorship or being in a groupit's almost like an insurance
policy to some degree, and I canthink back to different groups
or mentors I've paid and howthat's directly saved me or made

(01:00:46):
me 10 times what I paid, typething.
So that's awesome and Iappreciate it.
And just to kind of likereiterate, that's what this
group is for is for mentorship,whether it be formal or informal
.
You don't necessarily alwayshave to pay some guru.
You meet online, right.
I'd actually advise againstthat.
But there's people in thisgroup, in the Facebook group,

(01:01:09):
that post your question this iswhat I'm dealing with.
Like Tony texted me thismorning like hey, what would you
do here?
Boom, this is what I would doand I'm not saying it's the
right answer, but like bouncequestions off other people that
have been there.
There's a lot of folks in thisgroup that have a lot of varying
levels of expertise dependingon what the field is.

(01:01:29):
So chances are man, it's inthere and if it's not, it's
probably one or two degrees ofseparation away.

Speaker 3 (01:01:35):
So one thing about firemen they want you to know
how smart they are.
So if you put a you put.
You put something in that groupman, you're going to get people
that want to communicate withyou, and so it's kind of cool to
have access to that informationfor sure.

Speaker 2 (01:02:01):
My last two things is one of the groups I run is once
in a while I'll post incorrectinformation on purpose, just to
get more engagement from theguys, because firemen and cops
love to tell you when you'rewrong.
They love to correct you, nomatter what.
It doesn't matter if it's likelife advice or financial advice
that engagement up Yep andthey're like, they don't post
anything else, ever Like nothingengaging, it's just they want
to respond to your incorrectinformation so the other part of
that is what I'll end on beforewe wrap this up is that the one

(01:02:23):
piece of information that wetake away from this is that you
still can't trust a preacher manall the time.
They'll set this to your mindjust like anybody else.
Tyler, you got anything else?

Speaker 1 (01:02:35):
Nope, it was.
This was awesome, and I knowit's going to help a lot of
people, so thank you, tony.

Speaker 3 (01:02:41):
I appreciate it, fellas.
Thanks a lot, man.
Y'all, y'all are awesome.

Speaker 2 (01:02:45):
All right, my favorite Ohio pair of magic.
Thanks for hopping on with usand I'm looking forward to
pushing this even further andseeing how far you can go with
this thing.
Okay, appreciate y'all.

Speaker 4 (01:02:54):
Yeah, man, awesome to watch you grow.
And then, if anybody wants toconnect, your information will
be in the show notes and thankyou and