303: [Dr. Axel Meierhoefer] The King’s Path to Real Estate

Episode Transcript
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>> Dr. Axel Meierhoefer (00:00):
Was just different location. I'm never going to make

(00:03):
$4900 rent. I may be lucky if
I get 3500. Who is the winner? The
tenant, obviously. Because the tenant lives in a
$500,000 house for 3,500 bucks,
right? Whereas equivalent the rent
should be 5,000.

>> Anthony Weaver (00:24):
Welcome back everybody to another exciting show there about
that water podcast where we help the sandwich generation build
strong financial hab that they can spend
money, talk about money and enjoy their money with
confidence. So one of the people that I want to talk
about today is a German born former
air force pilot who soared

(00:44):
for 22 years in the military service
where he mastered the diamond formation
leadership and honed a disciplined
analytical approach to problem solving. After
discussing mean after distinguished
military career, uh, and a
demanding executive role for what
he made a pivotal shift into real estate

(01:06):
investing driven by the desire of
the time, freedom and economic
independence so that he wouldn't have to work
forever. And I'm sure you don't want to work forever either.
So his early disappointing, uh,
and expensive ventures had taught him the critical
importance of learning about the first

(01:26):
before I'm doing it, uh,
leading him to develop his robust due diligence
methods that he champions today. Uh,
now as the CEO of the
ideal wealth grower, he decided
me he's really dedicated his mission to help a thousand people
reach economic independence through the
residential real estate investing by uh,

(01:49):
2030. And I cannot
hold him up any further because he has so much great information to share with
you all. Welcome to the show, Dr.
Axel.

Yeah, thank you for having me.

Uh, you're welcome.
So why real estate?

Well, one of the things that has
to do with why real estate is,
um, I started to build my
own business in 2005 and if you go a little
bit back in history, you would find that
2002, 2003 was the real big,
uh, stock market crash, or dot

(02:26):
com crash as a lot of people call it.
And for me, when I started my own business and
I started realizing, okay, so there will be no
more Military Pension, 401k plan, any
of that kind of stuff, what can I do on my own
to build a portfolio that allows me at some
point to, you know, to pick the time when I want

(02:46):
to retire and become financially independent.
And so I only really knew, kind of had
experience to some extent, not, not much, but some
in stock market investing and then obviously savings
account, that normal stuff, but that had kind
of burned a little bit with the whole crash. So I'm like,
okay, what, what else could I

(03:06):
do? And immediately following that was
the question, okay, what do other people that I would look
up to actually do with their money if they don't do the st.
And one of the things, and you will probably chuckle about that, at
the time, Terminator movies were like,
huge, right? Like, so, uh, one of the people
that I always kind of related to, you have to

(03:28):
keep in mind I came from Germany. I was in the US Air
Force, and I was living in California, working for the
software company and then started my own business. So
it's basically an immigration story, even if it didn't
start that way. And Arnold
was, in a way, similar. Right. It's also an
immigration story that didn't really start that way.

(03:48):
So I don't know exactly why. And I know this is sounding like there
were any kind of relationship. It was more like, okay, this guy
is in the news, in the media everywhere, makes
tons of money. I wonder what he's doing with this money.
Right? And so I dug into that a little bit, just what I could
find. And there were several articles at the
time that said Arnold had been building one of

(04:09):
the largest privately owned residential
real estate portfolios in California.
I'm like, really? I thought, he's an actor, right? And a
bodybuilder and stuff. And that kind of
triggered me to say, okay, well, let me look around.
We were living in the Santa Barbara area, and I'm like, okay,
I guess you have to be a multimillion dollar making
movie star to invest in California, because

(04:32):
none of the numbers made any sense to me.
But. And you know, like you said in your intro, as a
German guy, military guy, I
used to approach everything very logically with spreadsheets
and formulas. And so I thought, well,
okay, but he does real estate. Can you
do real estate for normal people? And

(04:52):
that's what got the whole thing started, basically.
That's basically my answer to real estate. I'm not saying
it was honored. Uh, it was just the fact that
it got me to look at what is he doing with his money. And,
you know, I found out and then I started
basically researching and learning.

Yes.
So, you know, now that you
have done this research and going through that process,
what was it that, like, what was the
failing point inside the real estate
market that was like, you know, what, Am I really doing this
the right way or should I give up?

Um, well, I wouldn't say give up, but what
I had known had been told. I'm sure
pretty much anybody who ever really even heard about or
considered about real estate was two things
or three things. One was real estate
is all. As far as success in real estate is all
location, location, location. And supposedly

(05:50):
not only when you're looking for your own residence, but even as
an investor, it's all location. So
I'm like, okay, I'm in the most beautiful, like,
amazing locations that you could be being
Santa Barbara. Okay, I have a great
location, but when I run the numbers, it doesn't work.
So that was the first, like, okay. Then the

(06:10):
other thing that that basically triggered for me was.
Well, let me say the second one first. The second one was
I had always heard that if you are an owner of real
estate, that you have to clean toilets and
fix faucets and all that kind of stuff.

Yep.

So it needed to be in the right location and you
needed to be a handyman. So
I felt I was in the right location, but I couldn't
make the numbers work. And even though I can fix a
little bit of stuff, but I'm definite, definitely not a handyman.
So what I then actually
found by doing the research, getting books and stuff like

(06:47):
that is what do you really want to see as an investor
is really that you generate income
from your investment. And in a way, I
mean, I knew this from the stock market, right? I mean, if you
invest in stocks, the income is basically the stock rising
due at some point selling all or some of it, and you're making
the profit between what you put in and what you got out.

(07:08):
Well, in real estate, if you put money in and you
rent the place and it makes rent income, that's a form of
income. Now, it can also increase in value. So that's
potentially another form of income if you were to ever sell the
property. But the fundamental premise is
you want to make income. So
what I learned from that was, okay, if I want to

(07:28):
make income, is it really
the location close enough to me where I can be the
handyman? Is that really the concept?
M And it became very obvious to me that there's a
huge difference between your own residence
and investing in properties that you then
rent out. Because obviously, if you can
find a property in a good location and you're kind of handy and don't

(07:51):
need to get a plumber, electrician, and so forth for everything.
Yeah, you can live nicely if you can afford it.
And we did. I mean, you know, we had a house in Santa Barbara and
we were living nicely. And if there were minor things to fix, I fixed
them Right. And most alone myself and all that stuff.
But from an investing perspective, I learned, and this is
really the true short answer to your question,

(08:12):
what really counts is the performance of the
investment M so
you want to find an investment
opportunity that when you run the numbers
it has a high likelihood, close
to 100% that it will perform
and everything else comes after.

Okay. So if somebody thinking about getting into real estate, is there
like a, like a paper napkin like type
of way to kind of make sure that this works
on like for the numbers?

Yeah. Well what I use is ah, what's called the
1% rule. So now
obviously there's a whole long list of things that kind of
also apply when you're looking for your own residence. Right.
If you were to say, okay, I'm planning because of my job
or whatever the circumstances, I'm planning to move
to Cincinnati, Ohio or I am planning to move
to Nashville, Tennessee or any place like that,

(09:07):
you would also start looking at where do I want to live.
Right. Ah, but from an investor perspective,
same scenario, but you don't want to move there, you want to invest
there. The very quick back of the
napkin, so to speak calculation is to say how much
is the price to buy the property that I'm kind of looking
at and what is the rent that the

(09:27):
seller or there are online tools like Rent
o Meter, Deal Check, Bigger pockets. They
have basically little
plugins that you can go on the Internet, type in the address
and it tells you what is to be expected for rent.
So that ratio between how much you pay and how much the
rent is, if you can get that to be
1% or close to 1%, there are

(09:50):
a few variations we can talk about. But if you get it to
1% or close to it, that is basically
assuring you that you're going to have cash flow. And here's an
important little add on that always
used to work beautifully and you really had like
quite a bit of cash flow. But what's kind of
interesting in our age time right now,
you know, your listeners, everybody knows we

(10:13):
live in a time of relatively high interest
rates and the 1% rule works
even with 7 and 8% interest. So
if you have a property that let's say costs
$180,000 in Cincinnati, Ohio or
somewhere in the Nashville area and you can get eighteen hundred dollars
rental, you can run the number through all those
calculators I mentioned and you will see there will be some cash

(10:35):
flow. Now is it
500 bucks a month? Probably not, especially if you have
high interest. But if you go through everything, you still
should have like a few dollars, maybe 50,
maybe 100, 150, depending, you know, what
the costs are. Um, but that's basically the first
thing to say If I have five, 10 different
properties that I looked at and I like them and

(10:57):
that I can afford one. And this is basically what
we do in our mentoring program, right? We teach people how to
actually find properties. Why? To find them in certain
areas. And then we teach them how to do those
calculations. But the quick thing,
180k property, 1750 rent.
Okay. Now it's worth looking deeper.

M. Okay, so that's the quick and dirty.

Is to make sure that's the quickest way to go about it. And
there are many, many variations. Right? Like, that's basically,
if you ask me, you know, what makes a
bloom of a flower beautiful, you know, you
can maybe say, yeah, the first thing you want to see is a really
nice color. But then when you go, you know, there are 27
levels deeper behind.

Right. So
the. Because a lot of people are afraid to even get into real
estate. Yes. We know we need to get to it just to live.
So how do we actually come, uh, up with the.
I guess you could say, like the seed money to start
that investment?

Well, there's a bunch of different ways to do
it. The first thing,
and I know this is maybe taking a few extra minutes,
but it's really a matter of how have you
been raised? It's the number
one thing. And I know that people,
myself included, I'm assuming you as well, we

(12:16):
cannot really influence how we're
being raised. But why I'm starting with that, as the first thing is
if your parents understood
to instill a certain level of frugality
in you, a certain, like letting
giving you a better start into life by saying
something like, okay, as soon as you start making any

(12:37):
money, put 10% away or 20%,
but something put it away before you start spending any
of the rest, that helps you
the most because one thing that
people oftentimes don't realize unless we're talking
about it, uh, like you and I are doing right now. And then you go back and
remember, the younger you are,

(12:58):
the lower the amount of money is that you
really need to spend. But
if you really go back to, like high school times,
any money that you spent was basically
for almost everybody, just for pleasure.
Like, uh, you didn't have to pay for much of food, you didn't have
to pay for rent, you didn't typically have to pay for

(13:20):
transportation. You know, all the things that we
nowadays pay you. Yeah, you had to pay maybe a little for the
girlfriend,
but you know, still within. So
if you made, let's say you had like a paper route or some
kind of job somewhere. I had a job in a nursery when I was
14. I really just blew the money.

(13:40):
Right. I later, my, um, my parents
started to make it clear that it would be good to save some because
there will be things that I would want in the future and it would be
good to have money. But initially, the first six months in
the job, I was like, oh, I have money. I can buy this stuff. I don't have
to ask my parents anymore. Right? So that's
why I'm saying that the sooner you get that instilled in you

(14:01):
and you put something away, and let's just
say you start at 16. By the,
uh, time you're finished with school and college and everything,
you're 25. If you really consistently did that
for basically 10 years, you probably have enough
money to buy your first house.
M. Right. Now, that's one option.
Now, let's say that didn't happen. Not your fault. You can't

(14:23):
really pick your parents.
The second thing is to basically
start asking yourself which habits are
helping and have helped for generations
to make successful people successful,
Especially when you're thinking about money. And
one thing that I like to point to is a little book called

(14:45):
the Richest man in Babylon.

Yes.

And what, what that basically says is the same thing like I
just described, is for any money that comes in
at the moment that it comes in, put 10% away.
Now you can put more away. But if you really do this,
think about it. Let's say you have a job that makes,
um, $3,000 a
month. Right? Now, in the beginning, when you're

(15:09):
younger, uh, putting 10% or 300 bucks away is
probably easy. You could probably even do 500 bucks.
But if you think about that for a year, that's three to
five thousand dollars a year. You do this for three or
four years, you have enough for a down payment for a house.
Right. And that's assuming your income doesn't
increase. That's assuming that you're, um,

(15:31):
not getting a raise, that you never put anything else away,
which is kind of unrealistic by conservative. Right? So
that's, that's one way or the second way to think
about it. Um, the other way that
I find interesting is not to
only look at everything that happens in life
on your own, but think

(15:51):
about how do most
organizations actually become successful? Yes,
they have a founder, but the success
comes as they grow.
So one idea that I
find beautiful and I don't know how many people in
college age, university age you have, but just
for a moment, imagine you're getting ready to

(16:14):
go to college and you know that you're most likely
going, uh, to be there anywhere
between. That's at least the plan. Four to six years, depending on
how far you want to take it. And you need to
stay somewhere, right? So what's the most
beautiful concept is
to find a few people that go to college with

(16:34):
you and decide that you're going to
buy something like a four plex?

Mhm.

Right. The beauty of that is those four parents,
you and the other three people's parents all
can vouch for you on the down
payment of their place. Right
now you can decide if it's a fourplex, if the four people
each have one unit,
or if you maybe say, okay, we share, you

(17:00):
know, two people share a unit, the other two people share a unit,
and then the remaining two units are being rented.
If you do that, you probably live for free,
right? Because in most cases, uh,
especially in any kind of college town or stuff like that,
the income that you would make for either two
or four people living in those two units that you don't

(17:21):
use would be enough to pay for everything that are, uh,
the costs of that 4 plex. But here
comes the thing now. If you do this,
you're building a foundation for everyone, not just
yourself, but the other three people as well. Because
sooner or later your college time will be
done. You will have paid down a little

(17:42):
bit for the first four years without
having spent your own money. Which by the way, I would highly
recommend to put aside so that you have a
down payment for your next investment property. Right.
M. But regardless, you
now have one property owned by these
four people. If you were, uh, my mentoring clients,

(18:03):
we would create a little LLC partnership
for people owning that fourplex. That thing
is going to be there forever and ever and ever. And it's going
to make you income from four units when you're done with your
college time, right? And then if you say,
okay, a four plex costs, let's say
$1500 or $2000 a month in cost
and brings in another 2000, right?

(18:26):
Then you can either split it or not, or however you want
to do it. But you have a starting point and interestingly enough,
you also now own something. You own the business
that owns the property, and the property has,
probably depending on when you started, you gained
value. Now if you were lucky enough, for example, and
you started in, in let's say 19, uh, 20,

(18:47):
uh, 2019 or 2018. And then you
finished in 2021 from home because you
couldn't go to college. Now Covid is over
2022, you're basically done. The
place is there, is rented out, right?
So you're good to go. You got super
low interest in the mortgage and you're really making
good, good income. And the starting

(19:09):
point for anybody to say, hey, I have a
property there that we bought, let's say for
250,000, $300,000. Now it's worth
500. So if $200,000 of equity
sitting in it that you could use as a down payment if
every single one of the original owners were uh, to do
this, you can buy a
$200,000 investment property.

(19:31):
So that's your second property on your own, right. So you have
four people now, you continuing from
there on your own. And you know,
now since you are so smart and you did your college really
well and you got recruited into a good job
and you probably have not started family yet, you can
probably keep putting 20% aside. So

(19:52):
you can see it's really a matter of
where is my starting point. Is my starting point
when I started my first little job, me in a
nursery, people having paper routes, working at
McDonald's or whatever, is it when you get
into college, is it when you have your first job
or is it sometime later? The
only difference is, and that's really the

(20:14):
answer to the question is how can I get my hands
or safe to have somewhere
around nowadays 30 to $40,000 to
start with. Yeah, that's it. Used
to, I used to say 20, but prices and
everything has gone up so much that you really need to think about
30 to 40,000 and fundamentally

(20:34):
to kind of put a little wrapper on it.
The sooner you start, the earlier you
can become an investor.
And I would um, really appeal, try
to appeal to your audience, anybody who is a parent.
I really meant that very, very seriously. One of your
responsibilities, uh, besides
providing food and shelter and security,

(20:57):
is to teach them and help them to have the
best possible start into life. And one
of the things that I'm sure almost everybody will
acknowledge, if you can start with an
inflation protected asset as early as possible
in your life, you have basically started
on a successful journey through Life.

(21:17):
I'm absolutely 100% sure about that.
And it only gets better from there. So you know, if
you're a parent, please, you know,
start developing the habit and then teach those habits to your
kids so that for them it's completely natural.

Mhm.
So with that particular
Understanding of, okay, now we got the seed money and stuff like
that. Where did you, like, learn this from? Like,
did, like, what type of, I guess you could say
money lesson did your parents have on you when you're
growing up?

Well, my parents basically
didn't teach me anything about investing.
Um, but what they did teach me
is, and this is almost like a German thing,
I am sometimes wondering if it's part of the DNA. But,
um, what they did teach me is
to make sure that when you go for any deal,

(22:11):
and I explain in a second what I mean by deal,
that you really get the best value for your money.
Now, what does that mean for a German, right?
Like, I don't know, uh, where, where's, uh, where are you
located?

Oh, I'm located in Maryland.

Maryland. Okay. I don't. Maryland has Aldi's, right?

Yes.

Yeah. Okay, so the audience may know
Aldis. It's kind of like a discount store, right?
But it's very specific. So in Germany, they have
Aldi, then they have Lidl,
is another one of those. Uh,
they have Neto, and they have
one called Penny. Penny is a little bit like

(22:51):
the dollar store. Okay. So they have those four.
And what happens to a normal German family? At least
once a week, each one of those four stores is
sending a little flyer to say, what are their
advertisements? Right? And what you
see is they're competing with each other to get
people into their stores. So they're picking
something that most people need and discount

(23:13):
the price to what they pay. They make no
profit on it.

Right?

Ah, so what happens? And this is the
explanation what I mean by getting the proper value for your
money, you might get one from Neto and you look at it and
say, oh, this, this week they're, um, having
coffee on advertising. So the regular
coffee in all the other three stores, let's say,
is $7 a pound, but they
sell it for 450. Now here

(23:39):
comes the DNA thing. The Germans would say,
okay, let me make a little less. I need coffee from
Penny and, uh, butter from Penny. I
need milk from Aldi. I need
oranges from Ali. And so. And you make a list and
then you go from one to the next and only buy the stuff that's on
sale. If you do that, if that's
your habit, not only are you getting

(24:02):
the same quality, that. Because they all buy the same stuff
from the same brands, by the way, it's no difference, right? It's
literally brand name coffee, brand name butter and stuff. It's just
to get people in this Trip. But if you build that,
and this is what my parents did without really talking about
it, my mom always looked at the thing circled,
you know, and you might say, okay, well, that was maybe your
mom. Okay. I went to Air

(24:25):
Force Academy and they made me
and all of us, they claimed that guys that wanted
to be officers, like Top Gun, even though that's,
you know, Navy and we have an Air Force. But if you wanted to do
that, you needed to know how to ballroom dance.
Right. So we were put
in an Air Force bus, driven to a dance

(24:46):
academy downtown Munich to go and
learn ballroom dancing. I
was from northern Germany. We actually have a
genetic difference. We have basically swallowed a
stick. That's about how stiff I was going there. Right.
So, um, but
there were lots of really pretty young women

(25:08):
who were into ballroom dancing. And when
they were volunteering to help these stiff Air
Force guys, they got basically training for free.
And I got to meet my wife there.
Why am I telling you this? When we got closer
together and we started basically living together and stuff, you know
what she did, what she did mean. I never said a

(25:28):
peep about it. Network leader
circled it and then said, let's go shopping.

Wow.

That's why I'm saying, you know, that's.

How you knew she was the one.

So is it really DNA? Right. So,
um, well, so in, in the
context to your question, that actually means you,
you want to figure out, and this is what I meant by the
difference between everybody saying location,
location, location versus performance,
performance, performance.

(26:00):
If I give you
audience a quick example, uh, and you have
probably in your mind seen or thought
about this before. If
you live in a relatively expensive
area, like I lived in Santa Barbara, a
normal modest house when we were living there was
about $500,000. And you got a regular three

(26:23):
bedroom, two bath house with a little small garden
around it. And that wasn't downtown to
Santa Barbara. That was like 20 miles out or something, right?

Yeah.

If. And, and through my work, I got to go
places. I went to Alabama, I went to, to
Ohio. I went to different places to do
work. Uh, but when work was over in the afternoon
and you went basically to a restaurant or just driving through the
town with your rental car, you saw houses there
and they didn't look much different. But every so often

(26:53):
you saw a sign that said, uh,
85,000, 92,000, I'm
like, wow. That same house, if I
had it in my location, would be 400 or
500,000. So I'm sure we have all seen
that. But that's an illustration of what I mean by performance.
So you know, if you buy that $500,000 house

(27:14):
in Santa Barbara, and today it would be probably a million house.
But, uh, let's just stick with 500
to apply our little napkin math
would mean you have to get $5,000 rent or close
to it to make the 1% rule. And on
the other hand, the $92,000 house, same house
basically just in a different location, needs

(27:35):
to make only $920 rent.
Now what is more likely? In
my mentoring, I always say, who is the
winner? If you look at it like a game,
I see In a, in a 92,0003
bedroom, two bath house paying
$928 rent, I'm, as the owner,
the winner. Because even out of those $920

(27:57):
rent, I'm probably making $150 cash
on the 500, 000 house. Same house, just
different location. I'm never gonna make
$4,900 rent. I may be lucky if
I get 3,500. Who is the winner? The
tenant, obviously, because the tenant lives in a
$500,000 house for 3,500 bucks.

(28:19):
Right. Whereas equivalent the rent
should be 5,000. So the answer to
your question is where do you look and how do you look and how do you
find good properties? Is you have to find first
areas in the country where that ratio of
price to rent is still healthy.

Mhm.

And it obviously is not in San Francisco or Miami or
New York or all these big places or even
Chicago. Um, so from an
investment perspective, you have to ask yourself, where
is a healthy population that has
normal jobs that likes
to live in a house with their family and can
afford the rent? And there's a

(29:01):
great book for anybody who is kind of interested to just find out,
well, so what are all the things that I need to know to
make that determination? Chris Clozier, I think it
was about 2006 or so, he wrote a book that's
called Turnkey Revolution. And that's
basically what helped me a lot. Because yes,
it describes in the first half of the book how his

(29:21):
family built basically a turnkey
business in Memphis, Tennessee. But the second half
of the book is almost like pages after pages of
checklists. So if you don't want to, you know,
become a mentoring client of mine or work with somebody,
you want to do it all on your own, I would get that
book and then read these checklists and

(29:41):
say, okay, where can I find properties where the
vast majority of what the checklists ask for
is met? And it includes things like
what's the ratio between price and rent.
But it's also asked the question, okay,
what are the people that uh, live in the area
and what kind of jobs do they have?

(30:02):
If you want to buy a
property where theoretically
the ratio is good but nobody can
afford to live in a house and they all live in apartments, that doesn't
work either. So
those are um, some of those criteria. But the
first thing I would say is become aware uh,

(30:22):
that you're really looking for performance.
And nowadays with AI you can just go on
ChatGPT or Grok or Anthropic or whatever
one you use and you just go in and say okay, find me
locations in the United States where
the average ratio of rent and the average ratio
of sales price is close to 1%

(30:43):
and it's going to tell you which locations those are.

You know I never thought to use AI for that.
Like I'll use it for everything else but never thought to.

But uh, for me what I'm finding is you could Google
it but two things happen. Number one, Google
first gives you almost all of the first page
advertisements and
then the thing is, you never know.
This is for me actually the lesson I've learned with
AI With Google I would
still say after using it pretty much as long as

(31:13):
it exists I have never really learned
and nobody has ever really taught me how to
write a proper prompt for Google M.
And I don't know exactly why but I feel with the
AI, with the large language model stuff that we have
now it is somehow way more
obvious. But if I say find

(31:34):
me affordable properties in the United States and it
gives me whatever answer I can quickly see, no, that's not quite
it. Let me define what I mean by affordable.
And the second or latest, the third time it's
pretty much spot on. And Google doesn't do that.
Right. Like it you, you don't really have the kind of
feedback. That's why I use AI
basically like my new search engine.

(31:57):
Also I'm a little weird. I mine is called
Roberto, you know because I feel like it's like
almost like a person I can see right.

But it's really cool to see
where you, the way how you utilize AI.
Um because I had a person on as
instructor at New ah York
University on talking about AI and
she was focusing on the non biased side of the house
of AI. But it's good to see that you use

(32:26):
it more so as a search more so to
get down to what you actually want versus
you know like he said With Google, it's a one shot, done
and deal. It can't go back like, hey, I really meant this,
or can you dive into this based on answers
that you already have? Let's compile that a little further down.
That's really. Yeah, uh, you do it that way.

But there's, there's one other thing and this is relatively
recent and it will become much, much more prevalent.
And, and I only know about it because I'm a little nerdy from my
air first time, right? So
AI, the, the most common AI
tools in use right now
allow you to ask the

(33:06):
AI, like chat or grok or so forth
when they, when you do what some of them call deep
think or some of them call it reasoning
is basically an option where it shows
you. You, you put in your prompt, right? Like find me the
locations with the best ratio of price to
rent in the United States.

(33:27):
Um, starting with above 1%
to no lower than 0.8%.
And then you say deep thing or you say reasoning and it
literally shows you what it goes through step by step, what
it does, what it thinks, what it looks at and then
throws away and looks at something else and so forth.
And that's another thing that you can never do.

(33:48):
And by just watching it, I've done it a few times. I'm not
doing it every time, but every once in a while I'm kind
of curious, okay, how does it get to his uh, results
Or I say his results because Roberto. Right. So,
um, how does he get to
his results? And when I'm looking at it, I can see
by just watching. Okay, it's kind of,

(34:09):
he's kind of doing what I would do if I had to open all
these different links that Google presents to M me. It's just
at a mind boggling speed. Like it goes in, it looks at it,
it blinks off, you see a little boom, it's gone. And the next
one, next one, next M1 next one, right? And so then it
basically starts putting things together and every once in a
while it seems to think, oh, that doesn't quite fit and it

(34:29):
throws it away. But you can watch it doing that
and the whole thing only takes like what, 20
seconds, 30 seconds, something like that.
But the point, what I'm saying, why is that so different?
Is by doing that
exercise of watching it reasoning for a little
while, it really helps you understand how you
need to do better prompts. M.

(34:51):
Right. Because now after, let's say you watch
that five times now, you know, okay, that's
what it does When I'm asking it this way,
next time you ask a little different. You have obviously different
questions. Uh, but you start understanding
how you can improve your question so
that it's more likely to find the stuff that you're looking

(35:11):
for. So that's a little excursion into the
AI stuff. But that's, you know, in,
I don't know, two years ago I would have said Google it.

Right.

But there's a better, uh, better bow strap now, you know.

Yeah, I'm thinking about it also for like interviews because
that's one of the things that helped me get better at
asking better questions.

Right.

And you know, sometimes I do hesitate on my
questioning because it's like I do need to rethink it
because it's too vague or I'm
along the lines, but I just don't know how to ask that particular
question even for, because like you and I, we have in
this discussion.

It's just, you know, but that's a
neat little trick. A friend of mine, I wasn't smart
enough to come up with it, uh, myself, but a friend of mine
said that to me. He knows that I do a lot of
coaching and mentoring. So it kind of obvious this,
the real strength of mentoring is
to get really good at asking questions.
Yeah. And so

(36:09):
he said, if you're not sure about your question,
why don't you ask AI what a good question would be.

That's a good one.

Literally. Right. Like if you say, okay, I want to ask
somebody on what's the best way to paint
this wall?

Mhm.

And you go and say, I tell me what's the best way?
If I am looking really not just for paint the
wall, but for these different things. The wall is really rough and
it is, the stucco is falling apart
and you know, like, you can describe it a little bit and it comes
up with five different ways, 10 different ways of asking the
question, then you pick the one that resonates most with

(36:45):
you and then you say, okay, pretend to be the
friend. Here's the question. So,
um, so I mean it's, it's,
you know, in my opinion, we are
just barely, barely scratching a tiny little
bit of the surface. Uh, this thing is going to be so,
so much more in our lives in the future.

(37:07):
But yeah, I think, I mean, for, from, if you
start and you want to do everything on your own, you don't want to
mentor, you don't want to sign up for a program m or stuff like that,
having the, this kind of a tool set available to you,
um, is Enormous. Right. Like, so I would still
say, um, use Turnkey
Revolution by Chris Clozier as a starting point just to get

(37:28):
into it, because he's really describing very
well, what is turnkey investing. And that was
my starting point. To get back to, one of your questions
is, I'm sitting on the west end of the country
in Santa Barbara, no way to ever invest in anything,
can barely afford my house,
how can I be a real estate investor?

Right.

And the real first answer is, well,
that only works when you invest in turnkey
investor.

Okay.

And if you like, we can dive a little deeper into that
for people to understand. What is that?

Yeah, explain that a little bit deeper. Um, for the people who
haven't heard it before.

Okay.
Again, going to start at a point where your audience is going to say, this guy
is getting a little weird.
So my, my
starting point for becoming an
investor for, well, performing properties in
residential real estate is number one to
say, in my mind, with my mindset, I need to

(38:27):
separate my private life and my investing.
Investing is kind of like a job. And I don't mean in the
amount of time spent, but in what it is.
So what we do when somebody joins our program, the first thing
we do is to say, okay, let's start a business, an
llc. Um, and
what would you know if you had to come up with a name, what would you call

(38:47):
it?

Weaver Real Estate.

Say that again.

Weaver Real Estate.

Weaver Real Estate. Okay. So I would say,
okay, let's call it King Viva Real Estate.

Okay. King on there. Okay.

King Weaver Real Estate llc. That's what we're building.
And then we basically get a bank account. We set up
the company in Wyoming. We're good to go. King William,
uh, King Weaver Real Estate exists now. That's the
first step. And then we're basically
going to say, okay,
what is turnkey investing? Is

(39:24):
basically finding, not really in the
traditional sense, but in some sense, people
that want to work for King Weaver Real Estate.
So who are those people that we need to find? We need to find
somebody who is finding properties
and make them really nice and renovate them.
That's one employee or group of employees we need.

(39:47):
We now need somebody who is willing to give
us the 80% of the money that we need together
with our 20% to invest into the property.
So that's a lender, a bank or so forth? Yes, they're not really,
in the normal sense, employees, but we are employing them
as King Weaver Real Estate llc
to work for us, to give us money, work for us,

(40:09):
manage the Mortgage. Right. In a way,
it's actually. People forget when you got a
mortgage, regardless whether it's for your residence or for an investment
property, when you get the paperwork, uh, it
actually is called a mortgage servicer.
That's who you pay your money to every month to a mortgage
servicer. Well, how much closer is that

(40:30):
to calling it? They're servicing my mortgage.

Very close.

And who has the mortgage? King Weaver
llc. Right. So, okay,
so you need lender. You need someone to renovate the property.
Obviously, it's like a thousand miles away. They need
somebody to manage it and to find you the
tenants and to collect the rent. Right. Now, obviously,
the, uh, King Miva Real Estate LLC also has a bank

(40:54):
account, so they can send the money there.
Then you might probably say, okay, if you work with
me, I would say, well, let's decide to build a cluster. Not
have one here, one here, one here, one there. We want to start
somewhere. Whether we used AI or not, to figure
out where do we want to build our first cluster?
Let's just stick with the example. We built our first cluster, uh,

(41:15):
in Cincinnati. Cluster
means 4, 5, 6 properties, kind of
close together. And why close together? Well,
because then you can use one property manager,
and they take care of all the properties. What's the benefit to
King Weaver is you only have to have one call
a month for five properties, maybe half

(41:35):
an hour, 45 minutes to tell this employee
what's been happening with your properties
last month. Right. Tenants and repairs
and rent collective, blah, blah, blah.
So your job as the CEO or king of King
Weaver Real Estate LLC is to talk to these
guys once a month. Right. So we
have that. And then there are a couple other things. If you build a cluster,

(41:57):
you would also hire an inspection company.
So, yes, obviously, for the first property. And then when you
keep adding more to the cluster, that's the same ones that
you send out there to inspect the properties.
So that's basically what I mean by you're building
organizations, companies, and people who work for

(42:17):
King Weaver Real Estate llc.
And the reason why I call it King Weaver Real Estate
LLC is because it has to do with your mindset.
If you don't like the word king, you can
say founder or you can say CEO or president. Whatever
you try, you want to give yourself, but from a mindset
is it's your company, it's your

(42:37):
property. These people are working for you,
and they get paid for it. They get paid the mortgage, they
get paid insurance, if insurance is another one of those
employees. Right. They get paid for
managing it and stuff. Which also, by the way means
what do you do if in your team or in your company, if
you're having a normal job, somebody doesn't perform, what

(42:58):
happens?

You gotta fire them.

Right. So if you're the king of King
Weaver Real Estate llc, the king can fire people,
right? Yeah, yeah. So
you're obviously not just checking in, for example,
with property management to see what happened,
but each time you check in with them, you also
evaluate their performance.
Right. And so that's, by the way, some people forget

(43:22):
this is also true with mortgage. Right. Let's say right
now you bought the property last month and you have to pay
7% mortgage. And let's say Trump
convinces, uh, Jerome Powell that finally to
lower interest rates and next year it's down to 5%.
By what do you do? The king is going to call the mortgage company and
say, okay, I see everywhere I can get mortgages for
5%. I'm paying you 7. Make me an offer.

(43:46):
They say, I'm so sorry, Mr. M, we can't. Okay, thank
you. I find somebody. Yeah,
but it's a mindset thing. It's, it's, you know,
you are, uh, and I use the term in our mentoring,
you are the creator of your own future. And it starts in your
mind, in your head. If you want a different
future where you may not have to work because you have

(44:06):
financial independence, your property portfolio
pays you money every month, enough to live off
while you got to be the boss. You
are the person in charge. And
if you find good people from the get go, they might be
with you for 20 or 30 years or forever.
But most of the time I can say this from my own

(44:27):
portfolio. Yes, I was lucky
maybe, uh, to pick a few good ones that I'm
still with, but I also had to let some
go. But that's just, that's just the way
it is. And it's also a matter of. There's a
really interesting book, kind of a little bit on the side
called Good to Great. I don't know if you've ever heard that Good to Great
by Jim Collins.

I've heard of it. I haven't.

He uses this analogy. If your business
starts with you having a used
vehicle, that's what you need to
do your business. And the business starts growing and
you can change that used vehicle into a
newer vehicle and keeps growing. And you can change it
for a minibus because you need a minibus now, since you

(45:09):
need an accountant and a marketing person and so
forth. And then it keeps growing and be
Successful and you need a little bit bigger bus,
one of those 15 seaters, then it
keeps going and you basically, to stay within that
analogy, you need a Greyhound bus. The
person that you hired when you got a minibus might not
be the right person for the Greyhound bus. That

(45:32):
doesn't mean that they don't know their job, but they knew their job
for a business that needed a minibus.
They may not know how to do the job for a business that
has a Greyhound bus. So that's another
thing. But that's kind of the second thing. First you want to have all good
people. Most likely that's best. And as
you grow, you kind of also want to check, okay,

(45:52):
why does this apply? If somebody listens to us
and says, okay, I'm not quite sure, how does that apply?
Let's just say over time, over like a 10
year period, you bought seven properties
and got mortgages for each every time you bought one.
So now your whole portfolio, let's say, is one and a half
million dollars worth in assets. And

(46:14):
out of that you have maybe a million in
mortgage, but you have seven mortgages.
The minibus was each house got
its own mortgage. The Greyhound bus is getting
somebody who gives you one mortgage for everything.

Mhm.

Called a portfolio loan or portfolio.

I like that. Okay. I didn't know that you can do a portfolio loan
like that though.

Yeah, you can. The only point is this is a little bit like,
you know, that's a little bit, uh, extra.
Most of the time those portfolio loans
require 50% equity.
Right. So if your portfolio is 1.5 million, but
you still have a million in mortgages, it wouldn't quite work.
But if you wait a year or two and now your

(46:56):
portfolio is 2 million and you have like
900,000, it works. And now you have one mortgage instead
of seven.

Oh, that's nice.

Okay, but that's to illustrate a little bit.
What does it mean a minibus and a Greyhound bus? Well,
minibus, you have seven individual mortgages in a Greyhound
bus. You have now reached a size
where companies are saying, okay,
$900,000 mortgage to cover seven properties.
We are in, we're doing that right,
so, so that's the growth of your business.

(47:27):
But you, the king of King
Weaver Real Estate llc, have to grow with this. And
it starts from day one to know
it's my business, I'm in charge. You may have a
job where you have to dance for somebody else's tune,
but in your thing, you're the king or the queen and
it's your you're in charge, you're the boss and you
determine what you want to do, where you want to do

(47:50):
it and how you want to do it.
Now what I find, and that's why I'm kind of adamant about
it, is a lot of people, especially when they have a good job and they
want to now take some of the money to get into real estate
investing. Nobody ever taught them
how to be the king or how to be the queen and how
to really be the creator of your own future. And I find this

(48:10):
is probably slightly more important
in our mentoring that I do for people.
Then finding the properties and applying everything and
doing it right and making sure that we're actually
growing from m like the shitty little car to a nice car,
minibus, Greyhound bus. Right. That's the
journey as you grow your portfolio.

(48:31):
But that's almost like writing a software in a sense.
Right. If you put all the pieces and the software runs property,
it's just rinse and repeat. But the thing uh,
that happens for you as a person, what happens
with your mindset, what happens with how you approach stuff,
that's something that a lot of
people never got taught anywhere.

(48:51):
I had to learn it myself as well and I'm very
grateful to some of the people and some of the boards books I
read. Um, a lot about it has to
do with leadership. That's where my degrees are in.
Because that's really what if you think about it,
when we go back to the analogy of these employees that you have
in the King Weaver Real Estate llc,

(49:12):
they're looking for guidance.
I m always ask people, you know, in my audience,
I'm, I'm happily asking your
audience. When you look at your normal job where you
go to work W2, you're making your income,
what do you really want from your manager, from your
boss, from the founder or leader of the, of the company.

Mhm.

And what we want is guidance. We want direction, we want
inspiration, we want motivation, we want to know
why we're doing it and where it's going to go.

Right.

Yes. In the background we also want security. We want to know
that the guys up there at the top make the right decision
so the business can thrive. But on the day
to day basis we're looking for those fundamental things.
Well, what you need to learn and want to learn and
should want to learn is to be that person that provides the
guidance. And by providing the

(50:05):
guidance that creates your best future,
you're growing into this role of the boss, the
CEO, king, queen,
whatever you want to call it.

Um, so it brings up to. Because I mentioned earlier in
the intro, which is your diamond for formation leadership. Can
you kind of explain that a little bit? Because it kind of goes along the lines
of where you're, you're, you're going
a little bit.

Um, now there are some things that people probably
not necessarily aware of, but I always like to start
out with anybody, and I highly recommend it just
for, um, having the experience. If you go to an air show
and you see, you know, like the Blue Angels or
any one of those air show jet
teams, one thing that is that you see

(50:49):
is that they make different shapes with
multiple airplanes, right? Like four planes or six planes
or eight planes. And they make diamonds or they make like
triangles and stuff like that flying really close to
each other. So
now where does diamond formation leadership come is
basically four planes shaped

(51:09):
in a shape like a diamond. That's where the
name comes from. But what does it really mean? And what does it mean in
our context? How is it even possible
to do this? And I use
the analogy of, uh, if you have like a big
interstate highway kind of thing with like, three
lanes. Imagine something with three lanes
and you have identified another

(51:32):
car in the middle lane that you pretend to be the lead
car. And you're driving in a position
so that where you are on the interstate is in
line with some point on the other car. You can, for
example, say I look at my mirror and the mirror
in the other car and I want them to always be in the same spot.
So you're moving your car just to stay

(51:52):
in line. Now imagine on the other side, in the
third lane, there's somebody who's doing the same thing,
keeping the same position, and then
somebody behind you is always keeping the distance to the
cars in the left and the right lane and the one in front. So now
you basically have that diamond. But if you
ever try this, you will see it's not so easy because the guy in

(52:14):
the lead is not just steady like cruise control
and never moving.

Right?

So we have that in our mind, right? Like we have position. The others
are our position. Now imagine I take the
road away, and this is all in three dimensions.

Nice.

So what determines ultimately where
everybody is?

Gps, I hope.

No, everybody is lining up to
the one in the front.

Oh, I see what you're going to.

Okay. Right, you are lining up if the guy in the front,
you're lining your mirror with their mirror. The one
on the right side, Same thing. And the one behind you. Same
thing. Right. Everybody is lining up
to where the person in the front is or the car
in the front is. And if the car in the front is going
a little faster, you have to go a little faster. If the front

(53:03):
is slowing down, you have to slow down. If you go in
three dimensional and the one is going up on uh, the
down, you have to go up and down for the people
on the ground to make that look like it's all
one thing. Everybody has to be
in perfect position at all times.
Now to do this. I can tell you from personal experience, it

(53:24):
takes years and years and years to really make it look
like it's not moving while everything is moving.
M. It sounds fine that it, I
mean think about it. If you ever, and I encourage anybody, make it
safe. You know, I'm not trying to ask you to do crazy
stuff, but just try this. You don't even need to imagine the other
cars. Take one car when you're driving on a, on a

(53:44):
interstate and try to stay in the same position
with that car for more m than like a few
minutes. And you will get exhausted
paying attention looking at it while also keeping your own
thing safe. Right. You still have to look at where you're going. Don't
want to run into somebody in front of you. But then
also staying in the perfect position that you picked

(54:06):
for just a little while. It's hard work.
Not even talking about three dimensions.
So now that you know how that
diamond formation works, what do you think
might makes that hard work a little easier?

If the leader knows what they're going.

Yes. Great. Number one, what else?

Uh, I would say is uh, discipline. Well,
training really knowing that leader first. It's like, you know, you
get to know them.

Um, you need to know that you can depend on that person
not doing crazy stuff.

Right? That's true.

Absolutely.

And then it's obviously trust comes
with all of that. Yes.

Yeah, exactly. So yeah. What does
the leader have to do? What does the leader have to
do is not only flying safe and
basically looking ahead for everybody. That is information.

Mhm.

But the leader also have to think what can
I reasonably do that will
not screw up the rest of the formation?
The other people that are depending on me.

Right.

So sudden up, sudden ah, down,
sudden acceleration, sudden deceleration.
Not good. So what is
the real solution is you want to be as
stable as you possibly can.
If you're not moving much, it makes it so much
easier for everybody else to align.

(55:33):
Right now if the people that
are in your formation don't know how to fly very
well, it's still Gonna suck. That's what I said earlier
about how to pick good people. They have to have the
skills for which you pick up. And somebody might
be great looking out the window to the right
at the leader, and you put them on the other side and it doesn't

(55:53):
work anymore. And that's basically to say somebody
is great at property management, but they suck at renovations.
Right? So this idea of the.
Of the diamond formation leadership, or this idea
is basically to say, what is
my role, uh, as King Weaver?
That's your role as the leader of that formation.

(56:17):
Be stable, be dependable, uh, be
trustworthy. But also,
you have every right. When you come back on the ground
and you review and there's somebody who took pictures
or video of the formation when you were flying, and you
see one or two constantly being out of shape,
you're gonna give them some homework, you know, and
maybe one second chance to do it better next

(56:39):
time. But not forever, right?
Uh, because you don't want to embarrass yourself with the audience on the ground
who wants to see a perfect diamond.

Right?

And by the way, most of the time, to make this analogy a
little bit more cheeky, is the audience is your wife or your
spouse. If
you promise that you're Gonna bring in
$220 per house every month
and it rarely ever happens, your
audience is not going to be happy, I can tell you that.

So my, um, I guess you'd say
rough experience with, uh, investments, uh,
when it comes to real estate, is that everybody gets
paid first before you do.
And that's one of the things
that I've learned the hard way, but
also is that if you don't have the right people in

(57:30):
place before you even do the investment,
time is also of the essence as well,
because you could be sitting on a property, found a great deal, but if you
don't have the contractor to come in immediately
or within that first month to try to start
working on it now, you're wasting. It's
almost like you're wasting money. You're just sitting there throwing money away

(57:50):
because you can't really do anything unless you're going to, like you
said, be the handyman to go fix the toilets, fix
the walls, and do the renovations yourself,
um, and have the time to do that
before you even get somebody in there. So everybody's getting
paid before you do. If,
if I'm not mistaken on that.

Um, that is a mindset,
you know, and it's understandable, but that's a
mindset that doesn't
put you in the position of king. And
when you ask yourself, how do I switch this, how do I put
myself in the position of king?

Yeah.

My answer would be just look
at the other end of the month. M
the reality is
if you say everybody gets paid first and then I
get paid, that means
you get what's left over of the rent payment.
If you switch your mindset to say

(58:50):
sometime in the first six days of the month,
somebody is giving me the money for the privilege of
being allowed to live in my house. M
Then you get paid first and then
out of that money the mortgage company
gets paid and the um, property
manager gets paid and whoever else gets paid

(59:11):
first. You providing at
day one of the month, somebody with the
privilege to live in your house, they give you the
money typically in the first five to eight days of the month
and everything else follows.
And theoretically, I mean I know this doesn't really
exist anymore more in this day and age, but it used

(59:31):
to be if you ask people who were in real estate
investing 40, 50 years ago,
they will tell you that they collected the money. Oftentimes
it came in cash or check, they went to the bank,
cashed it in and then they went around because everything was
local. But it's not like today where everything and you never
really see your insurance people and stuff. They literally went

(59:51):
and brought the money that they had collected
to the people that were providing the services to the
property management, to the bank, to the
um, to the insurance people and so
forth and so forth. Nowadays it's all electronic, but the process
is am I looking at
everybody gets paid and then I keep the rest or

(01:00:11):
am I looking at I'm providing
shelter for fifteen hundred dollars
per month and that's what I get for providing the
shelter. And then since I don't want to do
all the work, I am paying out of that money
for the services, basically the salaries
for what the people did. M.

(01:00:33):
It's literally as simple as that to say, am I looking
at the end of the month from last month or am I looking at
what starts the whole thing? I own a
property, I make it available, I collect
up front. You mhm. Get
paid first, then they can live off it for a month.

>> Anthony Weaver (01:00:51):
Yeah.
So how did you get through some of these like early
on rejections? Like you know,
what was your, your mindset around your early
rejections? Like the lessons that you learned from those?

>> Dr. Axel Meierhoefer (01:01:04):
Um,
I was too weak. M is one
thing that I realized and I'm very grateful to
basically be part of some groups, you know, that
I joined, uh, with People that had more experience.
And the first thing they told me is, you need a mentor. And,
uh, that's basically my mantra these days. When people

(01:01:25):
say, okay, how do you help people investing in
real estate? I say, yes. For
seriously experienced investors who can
show me that they have all the experience, I help them
with making my network available to them. But
90 plus percent of people don't have that.
And for them, the first step is to join the mentoring program.

(01:01:46):
And that is basically like somebody
taking you under your wings and say, hey,
I have a portfolio of 10 properties. I have
$3 million in asset value. I have this huge network
of connections. Sure. Can you build all of that on your
own? But it's going to take you years. It took me
basically 15 years to build it. Why would you do this

(01:02:06):
on your own? Go through the pain and the
rejections, and on top of that, sometimes it's not even
the rejections, just you make a decision, it's the wrong one,
and then you feel the pain.

Right?

You didn't get rejected. They did what you asked them to do. It was just
the wrong thing. Right? So, like
one example, as you want to be the manager of the
renovation and you're putting all the nice stuff in that you want, would
want to have for your own house.
So now you invested into the property
in relation to what the market is able to pay you and
rent. Now, you were, uh, expecting

(01:02:39):
two, $300 in positive cash flow, and in
reality, you have two, $300 in negative cash flow.

Right?

And the audience, you know who that is, is gonna, uh, you
know, say, what the hell, Mr. Weaver, King Weaver, uh,
what did you do? Right? If you
were enrolled in a mentoring program, you say, hey, I want to do this,
this, and this. I would say to you,
hey, King, we will ask you say, are you doing this
for yourself because you like it? Do you need granite

(01:03:07):
countertops and fancy faucets and stuff?
Or do you want to provide a good product,
a good quality product that
functions? Uh, you might love it
when you get up in the morning out of bed, and you'd like to go
bare feet and you want to have a nice fluffy
carpet.

Right?

Totally understandable. And in your own house, go for
it. In a rental property,
you have to replace these carpets every two or three years. So
what do we do? We put laminate floors.
Yes. They're kind of cold when you get barefoot out of bed,
but they function properly so that you only do it
every 20 years. Right. So that

(01:03:46):
kind of stuff is what a mentor can help you when you say,
okay, if you really want to get into
renovation, one thing, if anybody, by the way, has
ever watched hgtv, any of these renovation
shows, if you're honest and turn off your
emotional brain and just look at your logical brain, you
see that this they basically show you.
You find a property you renovated for way

(01:04:08):
more than you originally estimated, and then you're the lucky
ass. Every single episode that finds somebody who's
paying that increased price, not the one you originally
wanted, but the one you need to make because you
over renovated it. Yeah, that's what
HGTV does. And I like to watch it. You know, I like what
they're doing, but the message is wrong.
M. So here comes the solution.

(01:04:30):
We're back to turnkey investing. Turnkey
investor finds the ugly duckling in a good neighborhood. Since
their renovation team and they renovated,
they monitor, uh, what goes into the renovation.
Why? Because the sales team of that
same company ultimately has to put a price on it.
That when you and I, King Weaver and King Axel, go

(01:04:52):
and say, we want to see if we can buy this property.
Our, uh, employee bank
abc, hey, we want to buy this thing.
They say, cool. We sent one of our employees called
appraiser to this thing. Oh, what do they
want for it? What are they asking? Are they asking 185?
Appraiser goes in and says, 170 is all I can get.

(01:05:12):
What do you. And I say, hey, Mr. Seller of the
turnkey company, your thing is $15,000 too much. And
I have it in writing. Mr. Appraiser said so.
So if you give it to 170, we have a deal. If you don't, we
don't. Right,
That's.

Oh, yeah, the hand raises.

Yeah, I showed the hand. Sorry.
Um, right. So that's how. That's how
that goes. So you might
make emotional decisions on how to renovate the property.
Property. The
turnkey provider renovation team goes
strictly by a list of what makes this property
functional for a tenant and

(01:05:50):
stays within the price so that when they want to sell it, it
appraises. That's part of the
reason why I like to work with turnkey providers,
because you never buy a property that is over
renovated.

That's smart, right?

So now you have that. And then obviously the other thing
is, what's the quality of the renovation?
Well, it has to be good enough so that the property management
part of the turnkey provider is not constantly complaining about
the renovation team. Why? Because when you
and I, when I'm your mentor, King Weaver Real estate is
going to buy that property from the turnkey provider, I

(01:06:27):
will teach you to insist that you get a one year
warranty on everything they touch during the renovation.
They might initially bark against it and say, well, we normally
don't do this. My first thing you and I on the call with
these guys is hold it.
You are not trusting your renovation team to do good
enough work so that our tenant can live in the property

(01:06:47):
you're just selling to us at least for one year
without repairs. Really? Wow. Um,
that's what you're saying?
No, no, no, no, no. I never said that. I know. That's not.
We do really good. Yeah, okay. But if you do
such good work, then you give us a one year
warranty. And if anything breaks and the tenant says, hey, the faucet
is dripping or this and so forth, you go in and fix it.

(01:07:09):
And I always say that if that is not your
common thing, you should make it the common thing. Because
one thing it's going to do is your renovation
team will be chewed out so much every week that they will do a
better job if they really need it. If they're
good, you never need to chew them out. You never need to use the
warranty. Nothing lost. But

(01:07:30):
you and I, as the investors know.
When does stuff break? When it's just been freshly
installed? Usually.

Um, if it's freshly. It depends. I
would say it depends because sometimes it could be immediately soon as somebody
go to use it. But if it's properly installed, it's
usually about five years.

Right, exactly. But if it's not properly installed, it
breaks in the first month.

Yep.

Or pretty much immediately the first time you use it. And I mean
I've seen this, like sometimes it's three months
because there's like a shower and a bathtub and
other stuff. Three bedroom, two bath house. And like
for whatever circumstance, they use the bathtub the first time, three
months in and it
doesn't work properly or it doesn't get warm or it doesn't,

(01:08:14):
you know, whatever drain properly. Well, right.
That's why you want a year. Because most of the
things in a house you will use within the first year.

That's true.

Right. But that's, that's also something if you
ask yourself what's the difference for buying a property
from a flipper versus buying a property from a
turnkey provider? When you buy a property
from, ah, somebody who flips properties or does the burr
method or whatever, um, they
don't do property management. So you can

(01:08:43):
look at the property, you can have inspectors go
through the property. All good. The inspectors, they can
turn on the force and then stuff. They're not going to take a bath or anything
like that. Right. So
what happens is now you finished, you bought the
property, you find property management because it's
1500 miles away from where you live. And property management
starts, tenants go in, in the first

(01:09:05):
three months, they find all kinds of stuff that doesn't really work quite
right. Flipper is gone. You said
you bought it as seen. Property management says
this stuff needs to be fixed. Well, you
have a basically freshly renovated house where
you're just starting to get rent and most of your rent is
going into these repairs that should have been taken care of if

(01:09:26):
the flipper would have done a good job. That's
one of the big differences when people tell me, yeah, but when I buy
it from a flipper, I get it a bit cheaper than from turnkey.
Yes, maybe true at the beginning, but you
might pay it back. I'm not saying this is true for every,
everyone, but you might pay it back in
repairs because you can never get back to that flipper after the
deal is done. But when you're buying from a turnkey

(01:09:49):
provider, uh, that's the same company that you bought it from that's
also managing it for you.
Yeah.

The things that we tend not to,
the things that we tend to look over and that's very
important to remind people, love,
um, especially the listener that's listening right now about it.

Uh, let me ask you one thing. How many kings do you
think there are, uh, that overlook the stuff that's.

Important to them, that's important to them?
None.

None. Right. So if you really see your role as
King Weaver Real Estate llc, and you are the king, or
for that matter, queen, if you have female audience members,
that's the thing that you're building as the creator
of your own future so that at some point you don't have to work
anymore. I have a hard time thinking of a whole lot
of other things, maybe your kids and your spouse. But then

(01:10:39):
after that, that's probably the most important thing or should
be.

Yeah. Um, because you mentioned the future.
So let's go down and go to the third segment of the show, which is the
futures. Um, so what areas are you focusing
on for your self improvement?

You mean in investing or in general?

Oh, in general. Um.

Well, one thing that I'm doing for
my own self improvement is getting better and better,
I hope at least of understanding the big
picture. Like it's one thing
when the media is telling us we just had Liberation
Day on April 2nd. I think it's a very
different thing to know. What does that mean in the big
picture? Right. Because one of

(01:11:25):
the things, and I like to keep using
the same terms. What is one of the big
roles that I have discovered for being a king or a
queen is you kind of have to have a pretty good
idea what could happen in the future.
The people working for you are basically
assuming that you're not just living in the here and

(01:11:47):
now, but that you have a plan for, for where we're going to go.
And as soon as you make any kind
of plan, any kind of vision for where you
want to go, you're being impacted by all the other
stuff. Right? If we, in two years, if you
anticipate we have 10 or 15% inflation, you will
do different things than if you say inflation will

(01:12:07):
stay at 2%. If you think in two or three
years interest rates will be 3% or will be
12%, you will do different things. Right.
And so forth. So what I do for myself
is constantly learning more and more about the bigger and
bigger picture. Because I believe by
now it took me like a long, many,

(01:12:27):
many, many, many decades, but I believe by
now, the more you understand the big picture, the
more you can anticipate and position yourself
properly.

M. I like that.
Okay. Um.
All right. So you have anything left that you want to say?
Before we dive into the final four.

Questions,
I would basically like to ask your audience to, if
you haven't already, really ask yourself
how much better
your future is most likely be going to be
if you have somebody who is helping you along who's already
done it.

I like that, man. You have a lot
of gems today.

Yeah, Right?

Yeah. Ah. All right. So you ready for final four?

Yeah.

All righty.
Number one, what does wealth mean
to you?

Wealth means to me to have enough
passive money coming in so I can do with
my time whatever I want. Okay.

Number two, what was your worst money
mistake?

Investing in the stocks during the dot com time,
like doc.com and frying
pan.com and stuff like that.

I remember those days.
Number three, is there a book that
inspired your journey or changed your perspective?

Oh, there's, there's many one that I like
to suggest for people who are, um, kind of
contemplating becoming an investor or becoming King
weaver Real Estate LLC's king,
um, is the Wealthy
Gardener by John Safari.

Such great things. I have yet to read that one. I'll definitely need
to read that.

But the nice thing about that one, just so the audience knows it's one
thing to read a book, but if the author and John has done that,
in this case, kind of made, uh,
additional little things, little snippets that are easy
to remember, and they're kind of woven through the
whole book. Kind of like a little bit like lessons
learned or like affirmations that you want to be

(01:14:46):
aware of or something like that. And so if you
go on The WealthyGardener, uh, dot com, I think it
is on the website. It literally has all of those
listed, and it even tells you in which chapter of the
book they are. My recommendation is
to read the book first, and then if you want to say, hey,
I remember this one thing that really resonated, you can

(01:15:07):
go on the website and find it there. But
that's a nice little add on that most books
don't have.

Okay, well, thank you for that.
Um, number four, what
is your favorite dish to make?

Favorite dish to make?
I would say chicken wings.

Interesting. What do you put on your wings?

Um, um,
well, I'm. Without trying. Right. We're doing them on the
barbecue, you know, so, um. Yeah, so we put,
uh, a little salt, little pepper, little paprika, and
little curry.

Okay, this sounds pretty nice right now.

Many, many, many years ago, we had, like, in a neighborhood where we
moved into, you know, like, a new development, Everybody was
new, and they had a barbecue, um, contest,
and I got a little third place
trophy for the best. I got the
best chicken wings. But the guys who won were basically making the
better steaks.

Well, congrats on that. I mean, local
celebrity over here.

Very local.

Uh, the last question of the show, which is where
could people find out more about you?

Well, we mentioned it a bunch of times. If you go on idea
wealthgrower.com there's a button to book a
complimentary call and talk and see if I can
help. Um, but, uh, in general, if you just
put Idea Wealth Grower into Google, or you can put it into
AI and it gives you all the links, we're pretty much everywhere
as far as finding us. And then from there you can get in

(01:16:48):
touch.

Yep. And if you can say I can never get your last
name. That's why I haven't said it yet. Uh, can you
just say it your last.

Yeah. Uh, if you
want to be elaborate.

Okay, thanks.
Uh, but thank you so much for coming on the show.
This has been great information, especially, uh,
insight into the real estate realm from
just the mindset and also understanding the
numbers behind it, but also understanding the why
and really utilizing the mentorship

(01:17:21):
process, because it's a lot of failures
out here. Um, failing in real estate. And that's why
I have a feeling that the stock markets. I mean, not the stock
market, but the real estate market is going to be
trashy come soon. Very soon.

Yeah, I. I have to disagree. I think it's a matter of
how you're doing it. But it was a great pleasure to talk. Talk to King
Weaver today.

Okay. We'll definitely have to probably come back
and see how things go.

Ah, yeah, for sure.

Thank you, everybody. You all be safe. We out.
Peace.

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