RealPropPro Podcast Ep 13 - Larry Steinhouse | June 19th, 2025 - RealPropPro Podcast

Episode Transcript
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(00:00):
And I would say, listen, you made zero or you made one or two
or three or 4% of your money. How would you like to make a
guaranteed 8%? I'm like, wow, can you do that?
I'm like, yes. And that's real estate.
With real estate, you can give them a guaranteed 8%.
Now you can do anything you want.
I mean, you know, it amazes me that newbie real estate
investors go, can I borrow your money?
I'll give you 15%. Why?

(00:24):
Why are you giving so many 15%? And you know the answer is
always the same thing 'cause I don't think don't lend it to me.
And it was like 50%. Well, first of all, if I have a
choice to lend a guy who's asking 8% for money and use
asking 15% for money, I already know my money is at high risk at
15%. You know why 'cause you're not

(00:45):
even smart enough to know what agood deal is or how to get to
get money properly. Welcome to the Real Prop Pro
podcast, where strategy, innovation, and wealth converge
to redefine real estate investing.

(01:06):
Hello and welcome to the Real Prop Pro Podcast.
I'm your host, Ian Detler, Fix and Flip investor based out of
Sacramento, CA. This show highlights real
investors building real wealth through real estate.
Our guests share the mindset andstrategies that actually work in

(01:26):
today's market. Realprop Pro trains investors
and newbies in how to fix and flip, do tax deed and tax lien
investing, creative financing, and so much more.
If you're ready to start or scale, please check out free
resources at realproppro.com. Today's guest is Larry

(01:49):
Steinhaus, a real estate investor, author, radio show
host, educator and so many more things.
Today we'll kind of talk about the different types of real
estate strategies that he uses and can't wait to get started.
He's also a podcaster and speaker with a no BS approach to

(02:10):
wealth building. Larry, welcome to the show.
What's up, Ian? What's going on, man?
I'm like, so excited to be on your show.
Hey, what's going on? What's going on behind your
head? Is that like thought bubble?
Just a little bit of art, you know, I kind of keep some
backgrounds interesting. I just thought it was like
thought bubbles, you know, like every time you had an
interesting thought one what appeared.

(02:33):
There's one right there. Yeah, I know.
Thanks again for coming on the show.
I'm so excited to hear the stuffthat you have to talk about
because you do so many things. It's hard to really, you know,
put your expertise in a box because you're so knowledgeable
in so many different things. Well, thanks man.

(02:54):
I don't know if we'll have time to talk about it, but I know
that you're also into the stock market and doing some really
cool stuff with options, so. I like making money.
Yeah. We'll see if we can get there,
but I think we'll try to make the focus on real estate
investing and private money lending.
So to kind of get started, can you kind of tell us where you
were born and raised and kind oflike what your early life was

(03:16):
like growing up? So I'm still trying to remember
when I was where I was born because, you know, I I just
don't have a memory that goes back that far.
But I do know one thing I do know.
I was born in real estate. OK.
And then my parents took me hometo more real estate.
Nice. No, no, you didn't.
The, the, the audience got the joke.
You didn't. You still didn't get the joke

(03:39):
though, did you? I was born in real estate.
Where were you born? I was born here in California.
No, but where were you born? In a hospital.
Yes, Isn't that real estate? Yeah.
And did your parents take you home to more real estate?
Yes, they did they. Took you home to your house,
right? So I was born in real estate and

(03:59):
my parents took me home to more real estate.
All right? If I had to explain the joke,
it's not as funny, man, I guess that you might, you might call
that a dad joke, right at my age.
Or would that be a granddad joke?
I guess that'd be a granddad joke.
All right. I remember my granddad used to
say used to make jokes that wereso unfunny, and he'd say the
same jokes over and over again every time I saw him.

(04:20):
And they got less funny every time.
So next time I tell you that joke, you might even laugh.
Now what did you want to know? I completely forgot by now.
Oh, I was just going to say, like kind of where were you
born? Where'd you grow up?
What was what was life like as akid?
So I was born in Brooklyn, man. And Brooklyn is, Brooklyn is,
you know, much better place thanmost other places for kids

(04:43):
because you have things to do. You play games.
Well, you play games. I'm sure they're still in
Brooklyn now. They're all on the Internet,
too. But you play games.
We played games outside. We had a blast, man.
It was fun when I was a kid. I feel sorry for kids now, man.
You know, all they do now is they do this and that's your
fund. Yeah, yeah, lots of screen time,

(05:06):
a lot more than even when I was a kid, that's for sure.
I mean, I did. We did have video games and
stuff like that, but I mean, we didn't have cell phones really.
Video games, man. I had the first Atari.
I had the mag, the box. You didn't even know what I'm
talking about. I started with the first
Nintendo, that's what. That's when I was old enough to

(05:26):
start playing video games. Very cool you did you get the
one with the gun? Yes, I did have the gun for Duck
Hunt. Yeah, the funny part is the the
people who still have the Nintendo with the gun, It's
worth a lot of money if you havethe gun.
And I keep thinking, wow, I could have saved mine.
I even upgraded to Sega Genesis,the first Sega Genesis and it it

(05:48):
had a big glove that you used toput on and you can like press
buttons and use the glove. Yeah, remember that?
Sure. It was cool that I had the
glove, but I didn't really have any games that I could play on
the glove. So kind of defeated the purpose,
right? It's like, cool, I have this,
but I but I can't use it. OK, so so you're growing.

(06:08):
So you're growing up in Brooklyn, you know, did you
attend college? Kind of how, how did that go?
How was? I was, I was smart.
I was smart enough to drop out of college after six weeks.
So I actually moved to Jersey when I was 13 and, you know,
went to school there and then then I went to college for a
whole six weeks. And I realized that that, you

(06:29):
know, this is a complete waste of my time.
And I was doing electronics. I used to, you know what I used
to fix? I used to fix pinball machines
and video games. Like arcade games?
Yeah, arcade games. I was really into it.
I was really into it. Was a lot of fun fixing that
stuff. And then, you know, I'm really
into electronics and setups, youknow, like car stereos was one

(06:51):
of my favorite things to do. I became a technician.
I repaired TV's and VCRS, all kinds of stuff.
That's awesome. I also really liked car audio.
Putting away too many subwoofersin the back of a car was just
like a passion of mine, you know, get it, get it down to as
least Elms as possible without blowing up the entire car.

(07:12):
You know, you know, like how when you put your car in reverse
and there's a rearview mirror, you know, it comes up on your
screen. Yeah, I tell people all the
time, I invented that. No joke, really.
I invented that. Now I, when I say I invented it,
I mean, you know, I, I had it ina car and I'm like, like it's
the coolest thing ever because nobody ever saw it before.
And I had it when you put it in reverse, I clicked a relay.
It wasn't even a electronic switch.

(07:34):
It clicked a relay to turn the camera on, on the on the thing.
And it was, you know, if you if you're into it, you at the time
it was the coolest thing. Now it's like, yeah, big deal.
Yeah, I actually have a pretty cool story along those lines.
I I was raised by one of my mom's boyfriend's name is Joe.
Shout out to Joe if he's listening.

(07:55):
His claim to fame is that he invented the CD.
So that's it. That's it.
That was a pretty big deal. It just never happened.
He had the idea to do a optical disk read by a laser well before
CDs were even out. Everyone was transitioning into
cassette tapes. And so he pitched it to the
board at whatever company it was, and they said no way.

(08:19):
This is not never going to work.This, you know, we're on on
cassettes now. So they really missed out on
that one. Yeah, it's funny when it's funny
when you think about it, the if you come up with the right thing
at the wrong time, it doesn't matter.
Yeah, yeah. And you have to be able to get
in front of the right people as well, right?
I mean, that's exactly in that case he got.
He didn't get in front of the right people and the whole thing

(08:42):
kind of failed. Yeah, sure.
So let's let's talk about real estate.
Like what, what got you initially interested into real
estate? What got you looking more into
real estate and being like, OK, can I make some money off of
this? Did I tell you I was born in
real estate? So I told you you'd laugh the
next time you heard that joke. So when I was 18, actually, I

(09:08):
bought my first property. It was kind of interesting.
You know, I was actually workingat Crazy Eddie.
I don't know if I don't know if anybody remembers Crazy Eddie,
but it was an electronic store. It was one of the coolest
electronic stores ever. And I was a technician.
I used to repair VCR TV's like Isaid before, and at the time I
was making 5 bucks an hour. Now 5 bucks an hour was more
than minimum wage at that time. Minimum wage I think was 335 at

(09:30):
the time. I'm making 5 bucks an hour.
And my boss, the head technician, was telling stories
about how he's how he's buying properties down New Jersey
Shore, renting them out, making money, you know, fix them up,
making money. I'm like, you know, you remember
when you were 18? I know what it was like, what,
five years ago. That was a long time for me
actually. OK, so.

(09:50):
I'm going on 40. All right.
Yeah, not that long ago. Compared to me, anyway.
So when you're 18, remember how you, like, knew everything.
Yeah. Yeah, so when I was 18, I knew
everything too. When I was 18.
And I'm working at just like, you know, fixing VCRSTVS and Jim
my, my, the head technician, my boss, he's telling me how he's
buying properties. And at 18 years old, if he can

(10:12):
do it, I can do it. Because at 18 I can do anything,
right? So I decide I want to start
doing this. And one day I'm actually at the
gym. And you know, what do you do
when you go to the gym? Like when you ride the
stationary bike? What do you do to entertain
yourself? I usually throw on audio books,
but before that, before I was really like trying to teach
myself stuff, I'd just put on some music.

(10:34):
Right. So you know, most people didn't
have portable music or they didn't have they didn't have
like an iPad or an iPhone, right.
They had these walk phones. They had these things called
books. And that day I forgot my book
and I was went to the front. They used to have these books
called the real estate book. I don't know if you remember
them, they would have called thereal estate book and they didn't

(10:55):
have, they didn't have online MLS.
They had real books sister with really nobody had a computer at
that point. And I grabbed a real estate book
and I start going through it andI find this house in a town
called Easton, PA, which is about an hour and a half from
where I lived. I didn't realize it at the time,
but about an hour and a half where where I lived and I find
there's two family house listed for $26,500.

(11:15):
So I called the real estate agent that day, make an
appointment. I go see it and she goes, what
do you think? I go, I'll take it.
What do I do? I'm 18, right?
I go, I'll take it. And she goes, all right, I need
a $500 deposit. And I looked at her and I go, I
don't have $500. And then she goes, well, can you
give me $100? And I was too embarrassed to
tell her that I didn't even have$100.

(11:36):
But I write her a check for $100and I figured I'll get it to,
I'll get it to clear somehow, you know, before she cashes it.
And about 30 days later, I closed in that house.
I'm making about $200 a month, positive cash flow.
And then I make the biggest mistake ever.
I sell that house a year later at a 50% profit.
Now that's a pretty good profit,of course, right?

(11:59):
The problem though, is if I would have counted on to that
house, I paid 26,500 for it, it's probably worth about 350
now. And it probably would, I
probably would get about 3000 toalmost 4000 and rent off of that
property right now. So the biggest lesson I learned
now, I didn't learn it that day,I learned it many, many, many

(12:20):
years later is keep everything always just keep, keep your
properties and you'll make a whole lot more money.
But that was basically my first property.
It was a lot of fun. I made a lot of mistakes during
it and I learned so much from those mistakes.
That's really cool that you wereable to buy it for $100 down.
I mean, that's just crazy. Yeah, I figured out how to do

(12:42):
it. I actually read a book called
Robert Allen, No Money Down. I read that after I bought the
property and I read how I did it.
He. Had wrote about how you did it.
Yeah, I actually read, read in the book how I did it, which was
kind of cool. I actually used credit cards,
which is kind of wild. I actually used credit cards to
get the down payment money and then in a a loan from a bank.
I don't know. I don't know if it was an FHA.

(13:02):
I don't think they called them FHA loans at the time, but it
was a loan similar to an FHA loan.
Now, is that something someone can still do today?
If they had a a large credit line, could they?
Absolutely. They can put a down payment down
on a credit card. Well, I have.
It's not. You can't just walk into your
real estate office, go here, charge my card.
It doesn't work that way. But yeah, you can use your card
for down payments. You can use your card for

(13:23):
anything you want as long as youknow how to do it.
Now, I, I, I, you know, we've known each other for a little
while, but do you know how much available credit I have on
credit cards? I guess go ahead. 400,000.
How about 1.2 million? Wow, I was way off.
Yeah, you will definitely. If I have 76 credit cards, wow.

(13:43):
I have $1.2 million worth of available credit on credit
cards. Now, a lot of people ask me two
questions. I'll let you see if you can
figure out which two questions they are.
What's the first one? Why the hell would the bank give
you so much credit? That's not why they would give
it to you. How do you get it?
That's right. Who cares if Doug, you know?
Well, because I, because I know how to work the system and get

(14:06):
credit cards is the answer. But those are the two questions.
The first question I ask is like, how can I do that?
I teach people, I do it all the time.
And the other one is funny. A lot of people say why in the
world would you have $1.2 million worth of available
credit credit cards? And then I answer, I say, well,
do you know what I could do with$1.2 million worth of available
credit credit cards? And I answer back anything I
want. Uh huh.

(14:26):
So think about that, man. Anywhere I want to go, anything
I want to do, anything I want tofix.
Like how many times you do a fixand flip in right and you go, oh
damn, I need an extra 50 grand. Well, if you have $1.2 million
worth of available credit and credit cards, you got that fifty
grand over and over again. And, and it's one of those
things where you want to have itbefore you need it, absolutely.

(14:48):
And so it sounds like you've already set that up, you've
established those credit lines and they're ready to deploy any
time you need them. Yeah, I mean, you know, I just
use my credit cards to take careof anything.
And you know, I have Visas and Master.
I have 9 American Express cards,different account, 9 different
accounts. Now you, you always hear a lot
of people talk about good debt and bad debt.

(15:10):
Can you kind of explain to the listeners what some good debt is
and what some bad debt is? Here it is real simple.
The definition of good debt and bad debt is very simple.
Good debt, someone else pays forit.
Bad debt you pay for. So if you have a mortgage on a
property and you're renting it, that's good debt.
So think about this, Ian, if youhave your house, if you own your

(15:33):
house and you're paying for it, the mortgage, is that good debt,
a bad debt? That's bad debt.
That's right. Most people coming out of my
pocket. That's right.
Most people don't get that. If you're paying for it, it's
bad debt. Now, that doesn't mean you
shouldn't go buy a house, but just understand it's bad debt,
good debt. You make money on bad debt you

(15:54):
paint out of your pocket. Yeah, so I mean something like a
house hack where someone buys a house to live in it, but they
can term I hate You don't like house hack, huh?
No, it's the dumbest freaking term ever.
It's like I, I'm a millennial and I and I, I call it house
hacking. You have a fucking roommate.

(16:15):
There's also another there's another term too, cohabitating I
think is. Yeah, that's even better.
That's better than house hack. Hi, how's hacked with my best
friend? What the hell does that mean?
Well, I have this room and he gives me rent.
He's a roommate. Subway you're just sub leasing

(16:36):
it. No, you're not sub leasing it.
Oh, no, you're just leasing it. Yeah, I mean, you're leasing
your room to your friend and most people don't even don't
even get a lease, which is dangerous.
You know, you put your your friend, even if your friend, you
put him in your room and you puthim there for a long time, then
all of a sudden you say, hey, you know what?
I decided I don't want you living here anymore.
And he goes, good luck. I'm not leaving.

(16:57):
And guess what you can't do? You can't evict him.
You know why? Because she don't have a lease.
Uh huh. And you never did.
So no house hacking for you. No, I don't.
I I, I will certainly get a roommate, but I would not have
sack. OK, do you understand?

(17:18):
Like, because I won't use that term.
Yeah, it's a dumb term. Sorry.
But you know, all you millennials out there watching,
dude, it's fucking getting a roommate.
And if you want to get 2 roommates, that's two roommates.
That's not house hacking. So what?
What kind of, what kind of real estate do you, what kind of real

(17:42):
estate did you start doing and then like have have your
strategies evolved over time? So my strategies real simple, if
I could buy a house with absolutely no money out of my
pocket, which the only way I buythem with absolutely no money
out of my pocket and even get somebody a closing, which
happens almost all the time for me and I can make at least 200
bucks, 300 bucks a month after doing all that, I'm buying it.

(18:04):
I mean, think about this, right?Do you have a car payment?
Yes, yeah. What's your car payment?
400 a month. Great, great.
Now how much did you put down inthat car?
Maybe 7 grand. I tried it then I got a credit
on a trade in. OK.
But the trade in was your money,so yeah.
So say 5000. OK so you so you took $5000 of

(18:27):
your money because when there was a trade in or not it's still
5000 your money and now you pay $400.00 a month.
So what I would do if I was going to buy a car I'd go buy a
house. I'd get $5000 back at closing
the house. I should produce at least $4.00
a month. And now I bought a house with
absolutely no money out of my pocket.
I got $5000 down. I put the $5000.

(18:49):
I got 5000 back. I put the $5000 down in the car
and the payment comes from the tenants.
That's how you buy a car. Now that that reminds me of
Robert Kiyosaki and how he got his Porsche.
Same thing he said. You can't just go buy the
Porsche, you have to buy an asset that produces enough.
Money. That's exactly right.

(19:09):
And now I don't get an asset that produce enough for the
Porsche. I also get I also buy an asset,
get cash back at closing to put down as a down payment on the
asset, which is the only way I buy things now.
Yeah, I, I, I, I've actually mastered the stock market so
well that I actually borrow money from people like I, I, I
borrow money from my credit cardto 0%.
It's the funniest thing. I borrow money from my credit

(19:31):
card to 0% and I make 8 or 9% a month in the stock market on the
money that the credit card has given to me for 0%.
That's called arbitrage, baby. Just talking about real estate
and I just wanted to see like what strategies you're using.
I mean, are you using creative stuff seller 2 or sub two kind

(19:53):
of seller financing? Sounds like you're using like
whatever works, right? So I am the creative financing
king, you know. There's some guy out there, you
know, that everybody thinks is the sub two guy, right?
Yeah, I was doing sub 2 when he was in high school and I was
doing it right when he was in high school, not doing it wrong
when I'm when he was, when he's 40, whatever you mean.

(20:16):
You know, you guys, you guys want to go to the guy who just
has a guy massive market. He's incredible marketer.
And I got to tell you, I'm jealous of a marketer.
He is. But when you listen to him and
you listen to the things he says, it's like, dude, you're
clueless. You're getting 80% of it right?
No, that's OK, you're getting 80% of it right.
But I'm going to tell you how toget 110% of it right.

(20:37):
OK, I know everybody just questioned my math.
Screw y'all. Yeah, one of my partners is also
not a very big fan of that person.
He thinks that some of the stuffhe does is.
No, no, it's just unethical. I'm gonna tell you right now, he
didn't do anything illegal. Well, as far as I know, he
didn't do anything illegal. But when he does, it's very

(20:57):
unethical. Some of the things he's doing,
and I really have a big problem.I'll tell you.
I'll give you an example, Right.So all of a sudden, because of
him, there's this big craze of wholesaling Sub 2 deals.
Yeah, right. Oh yeah, I got a sub two deal
and your entry fee is $20,000. You know, look, let me tell you
what Sub 2 was for, right? It was for this, it was for the

(21:17):
guy who had a house and he owed $150,000 on a house worth
$130,000. And he can't sell it to anybody
because if he sells anybody, he's going to come up with 20
grand and he's going to come up with closing costs, you know,
like his pay his realtor and it's going to cost him 30 to 40
grand to get out of his house, right?
And that's the, these guys had amajor problem.

(21:40):
So I walked up to him and said, listen, what if I take over your
payments? I take over your property and
you don't have to worry about itanymore.
And the guy's like, really, can you do that?
I go, yes, I'll take care of it as long as, you know, I can make
a couple of bucks on it, right? And he's like, yes.
And now I saved this guy from himself.
I got a property with no, not having to get a loan and pretty
much no money down unless, you know, if I pay for the closing
costs, that's about all I have to do, right?

(22:02):
That's what sub 2 was for. And it was great, especially it
was great when the market was tanking, right, Which will to
happen again. So that's what was great for it.
Now, the problem with sub 2 has always been the same.
I tell this guy I'm going to make the payments for him.
Now the guy's got a credit score, let's say 750, right?
And I tell, I tell him I'm goingto make the payments for him and
I have to make these payments. What happens if I don't?

(22:24):
What happens to the guy's creditscore if I don't make the
payments? He gets a default on his credit.
He gets trashed. So for the next 7 years his life
sucks because I didn't make the payments.
Now I would never do that. And if I look somebody in the
face and I say I'm going to makeyour payments, I'm going to make
their payments. Now there was some unethical
people out there who didn't do it anyway.

(22:45):
But here's the deal. If I say to the guy, I'm going
to make your payments and I go up to Ian and I go Ian, hey,
listen to Ian. I got this sub two deal.
Give me 20 grand and you could have it.
You never looked the guy in the face and said you were going to
make the payments. In fact, I don't know you from
Adam. I mean, you know, I know you,
but but but you know, I'm doing some, some sub two deal on

(23:06):
Facebook and then, you know, yougive me 20 grand.
I got 20 grand and I possibly the seller.
And that's the problem with this.
That's why it's unethical. And the other one is I've heard
him say it. Hey, what's the big deal?
If the if I can't get the rent, I just won't make the payments

(23:27):
anymore. You know what?
That's duh. Anyone who says that and anyone
who does that, if and if the guyhimself is saying it, then all
his minions and all these peoplethat he's training are saying
the same thing. And that's just wrong.
So that's why he's unethical. Is it illegal to do something to

(23:47):
you? Absolutely not.
It's just unethical. So there's my there's my rant on
pace. Pace fucking Warby.
One, one of the things I'm a little bit concerned about is
along the lines of of that is this kind of Gator funding

(24:08):
method. Have you?
Oh, that's worse. Anybody who's dumb enough to do
that? Yeah.
Hey, listen, you, you you're a brand new wholesaler.
You need, you need 5 grand as earnest deposit here and you'll
give me 6 grand back. Oh, wow, what a wonderful thing.
Here's my 5 grand. Hey Ian, when did I get my 6

(24:30):
grand back? Well, you know, Larry, I forgot
to tell you that I never found abuyer.
And and now and now the the the seller now has your 5 grand and
I can't get it back from you. For you.
Yeah, I'll sign the contract. That says it's OK, you lost your
money, right? Yeah, are you kidding me?
That's a good idea. There's no collateral

(24:52):
whatsoever. Hey, Ian, I'll tell you what.
Yeah. You're going to give me a car,
You can give me a house, and you're going to give me
everything else that's collateral for that 5 grand.
And if you don't find a buyer, it's your problem, not mine.
I just can't believe that anybody would do that.
I And it's amazing how many people like.
Oh, yeah, I'm a Gator lender. Yeah, I make, I make 25% of my

(25:12):
money in three days. That's great.
But do you realize what kind of risk you've taken?
Holy cow. And there's other people too,
like, you know, I'm a, I'm a bigbeliever in your paperwork has
to be perfect when it comes to lending money.
I've never, you know, I have people.
So I have, I don't know, thousands and thousands of
followers at this point. Who, who all, you know, who
reach out to me. I mean, all thousands of them

(25:34):
don't reach out to me, but people reach out to me every
once in a while. They're like, hey, listen, I got
this, I got this loan that I lend somebody money and they're
not paying me back. And you help me and I help
everybody I can, you know, like you know, it happens all the
time. It's amazing to me how often.
And I, and I said, let me see the paperwork.
The first thing I'm going to do is see the paperwork.
Now I'm a lawyer. I'm not, well, you know why I'm
a lawyer. I'm not a lawyer because as I

(25:55):
told my mother, my mother's system all the time, you should
be a lawyer. And my answer to her is I can't
take the pay cut. Right, it's a great answer.
It's a great answer. So, so, but, but I really, I
really understand, you know, paperwork and the law and, you
know, certain certain things, you know, I, I, you know, so I

(26:16):
look at these people's paperworkand I'm like, and, and most of
the time, my first question is, is this all you have?
And they're like, yeah, what's wrong with it?
I go, it's a one page promissorynote.
I said, did you get a mortgage on a property?
Well, isn't that what that is? No, I said, where's your
collateral? Well, I don't know.

(26:36):
What does it mean? It says in there, it says it
says that that I could, I could have the house if I don't pay.
I said that's not collateral, That's not a mortgage.
That's meaningless. And it's funny.
It's like one page document. If you have a one page document
lending somebody money and you and you're the lender and you
had a one page document, not only do you say no, but you say,

(26:59):
if you ever ask me for money again, I'm going to punch you in
the face. You can tell them from Brooklyn,
huh? So can you kind of walk us
through some of the big wins because it it sounds like you've
done got thousands of transactions, correct?

(27:19):
Yeah, probably. It's probably not, not
thousands. It's probably more like around 5
or 600. OK, but you know so.
Tons of transactions. Yeah, I mean, I've been doing
this since I was 18 years old. Yeah, various different types.
I'm assuming you probably did some wholesaling in there
flipping some paper. So the wholesaling's
interesting. I did.
I tell you a funny story about it.
So investors, you know InvestorsSchooling is this.

(27:41):
I have this company called Investors Schooling.
I teach people how to do all kinds of money things.
We focus a lot on real estate inthe stock market.
So when I opened Investors Schooling, I opened it up 8
years ago. And when I opened up Investors
Schooling, I started teaching wholesaling as one of the things
I was teaching, but I felt like a complete fraud.
You know why? Because I never did a wholesale

(28:02):
deal. Now I did all the parts of a
wholesale deal like finding the properties, buying the
properties, you know, you know, renovating the properties or
whatever, right, getting him a cadre.
So it's not, it's not, it's not that far of a, a stretch to say
that I know how to do wholesaling, but I never did it.
So I was like, you know what I actually said, you know what, I

(28:22):
can't do this. I have to prove that I could do
wholesaling. So I opened up a wholesale
company and in two years I did $1.1 million with the wholesale
fees. So now I could say I'm not a
fraud. Wow.
That's that's a, that's a lot of, that's a lot of wholesale

(28:43):
income in just one year. Two years, two years, two years
$1.2 million in Two years 1.1 Sorry, $1.1 billion in.
Two years. Wow.
So what was your biggest win? Just like overall?
OK, what what comes to mind whenyou think big?
Biggest paydays? So yeah, wins paydays to me,

(29:05):
they're stories like how you know, how do you how do you have
a story to tell somebody, right?You heard the story of my first
property. It was interesting, right?
I saw you like on the edge of your cheek going wow.
And whenever this is going to me, a story is a win If I can
come up with a really great story.
Like I got one I'm working on right now.
So this is a great one and it's going to it.

(29:25):
I don't know what the ending of the story is.
I'll find out probably next week, which is interesting.
So my buddy that my partner and I should actually say we went to
the auction and we hardly ever go to the auction, but we go to
the auction every once in awhile.
And you know, everybody knows when you go to the auction, you
got to do all the research on the properties before you bid on
them and you got to see if they're a lot of liens on them
just in case. Because, you know, you buy a

(29:46):
property with liens on them, you're screwed because all of a
sudden, you know, you buy the property, you got the first
position, but there's 5 or 6 positions after you.
Well, they go away. But if you want the second or
third position, the one below you could, could come with you.
So we're at the auction and we had like 5 properties that we
identified that we wanted to buy.
And they, you know, they pretty much went for higher than we

(30:07):
wanted to do it. And all of a sudden we literally
would get about to get up and all of a sudden this guy goes,
the guy goes and talks about this one property in a town
called Richland Town. And as she's mentioning the, the
thing, I look it up and it's a freaking incredible property.
It's a commercial property with five or six buildings on it,
with a residential house on it and a barn and a mill.

(30:31):
And it was like, wow, look at this.
And I, I quickly estimated a property worth about a million,
maybe a million too, right? Real quick, right.
And the the attorney gets up. Now we haven't done any research
on it, remember. So the attorney gets up and goes
to the, the upset price is $280,000.
So I knew it to my partner. I go bid 281, he gets up and he

(30:54):
bids 281. No one bids against them.
And I just looked and soon as that I went.
So we only brought and The thingis like you're supposed to put
10% down. We only brought a cashier's
check for 50 grand. So we're supposed to put $28,000
down and we give them $50,000 onthe way home.

(31:17):
I immediately call my attorney and I go, I think I either hit
the jackpot or I big time. And he goes, what happened?
I go look, I found this property, blah, blah, blah.
We bid on it, you know, 280,000.We already gave him 50,000.
And frankly, we don't know what the story is, but we did some
research real quick at the townhouse, at the courthouse,

(31:39):
and we found two more liens on this property of equal to over
$2,000,000. I said we're pretty sure we both
bought the first position. If you buy the first position,
all the liens after that go away.
We're pretty sure we bought the first position, but we're not
sure now. We have 7 days, I'm sorry, next
seven days. We have 10 days to go to the

(32:00):
courthouse with the other $231,000 where we forfeit the
50,000. So that was about a month and a
half ago while this is all happening.
So he starts doing some research.
My attorney starts doing some research on it.
And on Monday he finds out that he's really good friends with
the attorney on the other side. So we, they start talking and we

(32:22):
start figuring out that yes, we bought the, we bought the first
position. We're like, yes.
And it's so exciting. We're like, this is freaking
great. We got $1,000,000 property for
$280,000. This is phenomenal.
We can't. We're so excited, right?
And he goes, but I go, but what?He goes, this was not a normal
foreclosure. It was, it was a confession of
judgement foreclosure, which he hadn't, which no one has seen in

(32:44):
years. And he goes, so we're not sure
if the other liens actually really go away.
I said, all right, well, you know, find out for us because
I'd rather lose 50 grand than lose 280 grand.
So he starts to do some research, did some research and
he's talking to the attorney and, and they're back and forth.
They're trying to figure out they're both, it turns out like
in this case, they end up both working for me.

(33:06):
They're on my side. They, the attorney for the bank
wants me to buy the property. My attorney wants, we wants the
best for me, of course, right. So now it's there.
We have it's, it's so that was Friday.
Now it's the following Thursday and we have till Monday to bring
the $231,000 to the courthouse. And on Thursday, Mike Hurley
called me and says, listen, we're still trying to figure out

(33:28):
if if there's a problem here. We're trying to get some
guarantees from the bank that says that there won't be a
problem, blah, blah, blah, blah,blah.
We need some time. So we're going to ask the
courthouse to give you guys an extension to bring the money in.
So at that point, my part is like, he's going to Florida the
next day anyway and he's got themoney in his account in his bank

(33:51):
account, right? But we don't care because we'll
get an extension. We got plenty of time.
He'll be back next week. He's figuring I'm going to get
an extension for 10 days, blah, blah, blah.
Friday turns out to be a holiday.
So Thursday they asked for the extension.
Friday's a holiday. Monday comes and we're like, you
know, just do going about a business.
Last time my phone rings at 12:30 Monday.

(34:12):
Now you have to have the money at the bank by 3:00.
My phone rings at 12:30 and it'smy attorney.
We couldn't get the extension. I'm like, what do you mean you
couldn't get the extension? The other side wants the
extension. We want the extension.
What's the problem? The sheriff says there's no
exceptions, no extensions and hegoes, but I'm 99% sure you're
going to be fine if you come up with the 230,000.

(34:36):
So I'm like, OK, I have an hour and a half to come up with
$230,000. So I call up my partner and he
says no problem, I'll call the bank, The bank, you know, And he
says I'll get the cashier's check, you just go pick it up.
The bank says unless he's you, we can't do it.

(34:57):
Unless you come in here physically and authorize that
transaction, we can't do it. Now he's in Florida and this is
a small local bank, so there's no branches in Florida.
So we're trying, we're trying tofigure it out.
We're trying to figure it out. Meanwhile, we finally say to the

(35:17):
sheriff, listen, well, why are you the money?
Nope, we don't accept wires. So Monday comes, 3:00 comes and
we don't, we can't give them themoney.
We just can't give them the money.
So now we're out 50 grand. We don't have the property.
And the two attorneys are talking over the next couple of
weeks and they're trying to figure out what to do with this.

(35:40):
So we asked for it. We filed a motion to allow us to
buy the property for 230. You know the difference, which
is 230 would say, you know, we already gave him 50 to allow us
to buy the property for $230,000.
So that motion will be heard this coming Wednesday.
Now, so far we've lost 50,000. We're like, oh, super excited.
We need to get the money. Super excited.

(36:01):
We're not going to get the money.
We have no idea. But if we get this property, I'm
you're talking about wholesalingit, I'm going to close in this
property and I'm going to immediately list it for 600,000,
which I think is a bargain for anybody.
But we have plans if we don't sell it, we have plans to turn
into a 14 unit apartment building.

(36:21):
So it's an interesting story. So you know, the whole thing is
like, you know, what's the best deal?
The best deal is the one with the best story.
And as a moment, this is the best story.
Nice. Yeah, I love that.
That was a great story. Thank you for sharing that and
I'm sure our listeners will wantto update.
You can reach out to me anytime.I'll also post in the comments

(36:42):
kind of what happened with this because now I'm interested.
I'm for sure going to be following up with.
You it's funny, we we both said well, we lost the 50 grand.
Whatever happens from here is only better.
Yeah, yeah, that'd be great if you can take that one down.
I mean, have you ever had a payday that large?
I mean like, have you ever brokeinto $1,000,000 payday?

(37:02):
It's like $1,000,000 profit. Not, not yet.
No, no, no. Still working that one.
No, I mean, I, you know, 200 and32150, you know, stuff like
that, but not, not $1,000,000 inone day.
I mean, you know, we, we, I at this point too.
Yeah. At this point, I don't sell
anything. I mean, this is this is a
different situation, but I don'tsell anything.
I everything I buy now, I want to buy and hold until I die and

(37:22):
give it to my kid. OK, Let him have it.
He could do whatever he wants. What I already told him.
They said if you're smart you'llkeep him and you'll collect the
rent. If you're dumb you'll sell them
and take the money. But I don't really care because
I'll be dead. Yeah, that is kind of funny how
much people really plan out their death, right?
And then it's like, do you really care?

(37:43):
Like you're dead. I don't care.
You know, I said, I said and I also said listen, I said and I
give them like access to all my accounts and everything.
I said make sure the payments are made because of the payments
are I made. Then all the lenders get the
properties and if they get the properties, you get nothing.
So, you know, I said if you wantto do that, I don't care either.
It ain't my problem. Yeah, I'm dead.

(38:08):
So you'd mentioned how you you have a train, you train students
on how to make money. Can you talk about how that
started for you and and what? It's funny you say that.
Well, it got you transitioned into like helping other people
invest. What we do is we teach people
how to make money. We teach people how to buy real
estate with no money. We teach people in stock market.

(38:28):
And it all started like this. It was started about 8, you
know, eight years ago. I retired about 10 years ago,
whatever. And I don't know, Ian, did you
ever have AW two job or do you have one now?
Yeah, I have one now. OK, how badly do you want to
quit your W2 job? Like really badly want to quit.
Right. So I was making so much money in

(38:49):
real estate, making so much money in the stock market that I
didn't need my W2 job anymore. And the funny part was I
actually got myself fired, whichis really funny.
So I got fired from my W2 job, but I don't really care.
I actually ended up making more money because I was fired, but
after a year of of sitting home and I was so freaking bored.
You know, you retired 50 at the time, you know, like I retired

(39:12):
like a little over 505152, whatever it was.
And what do you think everybody else does?
All your friends do during the day?
They all go to work, right, So you can't hang out with any of
your friends. And after a while you get really
bored of dot watching Doctor Phil and and and smoking cigars
all day. So, so, so one day somebody

(39:33):
calls me up and they're like, hey, I hear your question in
real estate. Can you tell me, can you teach
me that? I'm like, yeah, so there's a
Dunkin' Donuts down the street, maybe a Dunkin' Donuts.
Let me see what I can teach you.So I teach him some stuff and I
say, do this, do this. And, you know, call him back a
week later and I say, hey, did you do anything I told you to
do? Nah, somebody else called me,
Hey, you're killing the stock market.
Can you teach me that? I'm like, yeah, meet me at

(39:53):
Dunkin' Donuts and we'll talk about that.
And you know, sure enough, I give him a whole bunch of stuff
to do a week later. You do anything they.
They didn't do anything. Right.
Then another guy called me up and he says, hey, can you teach
me, you know, some real estate? I'm like, yeah, my coaching
program is $3500 for three months, so I'll coach you.
He shows up with a check for 3500 bucks, and he actually did

(40:14):
something. So it was at that point that I
realized that you have to pay topay attention.
So the interesting thing was I had this building actually the
one I'm sitting in right now, which is our office, I had this
building and I didn't know what to do with it.
I actually bought this building.I bought it for $1000 a month
from the seller creative financing with 0% interest

(40:34):
thinking I would rent it for $3800.
And I every time I put it up, I'm free.
I'm after taxes and the 1000 bucks taxes and and maintenance
fees. It was probably around $2300 out
of my pocket. And I figured I was going to
rent it for 3800 bucks and I hadit up for a year and I couldn't
rent it. I couldn't rent it.
I couldn't rent it, I couldn't rent it.
And finally, I, you know, I'm teaching about 3 or 4 people now

(40:57):
and I said, you know what, meet me in my office and we'll invite
some friends and I'll start teaching them.
And that was pretty much how investor school he started,
started with people coming to myoffice.
And it was funny, I had a part at the time when we first
started he so I didn't want to do this anymore, but at a part
at the time and we were like, wedon't even know who's going to
show up. We bought a case of beer.
We said if nobody shows up, we'll just drink the beer.
So about a dozen people showed up and it's been history since

(41:20):
then. Now, so many things have
happened since then. You know, I became a radio host.
I, I, I'm on the radio once a week on Saturdays from 1:00 to
3:00 and I talk about money. I talk about real estate.
It's funny. I talk about politics.
I talk about anything I want to talk about.
I have two, two Co hosts now. We have a blast.
You know, I, I speak around the country now about how to buy

(41:40):
houses without any money. I don't even know.
Have you been? You've been to some of my my
presentations, right? Yeah, I've heard you speak with
one of our masterminds that we're part both part of and I've
listened to a couple of your radio shows since of.
Yeah, Did the radio show make you laugh?
Yeah, definitely. You guys are.
You guys are right. It's a blast, right?
It's a blast. So so we just have fun and
that's pretty much what I'm doing.

(42:01):
Like tomorrow I have an all day event in my office.
It's a it's an all day event that we call the money hacks
event based, you know, based offmy books.
So by the way, here's my book. My book is called Money Hacks.
It's because everything you think you know about money is
wrong. Now, the cool thing about this
book is I'm telling you, it's a book you need to read.
You know, you're going to learn so much about money in this book
now. Now you're probably thinking, Oh

(42:23):
yeah, he wants to sell his book.I'm going to tell you right now
I make 4 bucks a book I don't give.
If you want to buy it, buy it. You don't want to buy it.
I don't care. But if you buy it, you're,
you're, I'm telling you the things this book are going to
blow your mind, absolutely blow your mind.
So we do our money hacks event every about every quarter.
We have other things like financial IQ.
The financial IQ event is an amazing event.

(42:43):
What we do with the financial IQis we literally rewire your
brain for money. So people, people have they have
the worst money mindset, worst money habits.
They don't know anything about money at all.
They don't have anything how it works.
You know, I mean, when I tell you I borrow money off my credit
card to invest in the stock market, the half the half the
audience would are you out of your mind?

(43:04):
I'm like, no, if you do what I do and do exactly what I do,
it'll blow your mind. You can't lose your money.
OK, so the cool part is it worksand it works over and over and
over again. You know, I trade almost
$1,000,000 in stock market at all times and I trade that.
I make a fortune off of it. In fact, I have Now you know
something that we're teaching, we're teaching this whole method

(43:25):
of this and we have a contest inour school.
We have a contest of people who who got into the contest and in
eight weeks the one who has the most money gets a trophy
investing in the stock market starting with $10,000.
So it's like, it's just so wild.The things that that we that
we've been teaching and what we've been doing, it's grown so
much. That's great.
That's so cool that you've takenthe time to build out the system

(43:49):
to be able to teach people how to, you know, make money in real
estate, stocks, whatever. And sounds like you're really
forming a community of people that are very like minded and,
you know, kind of have all most of the same goal, you know, just
make money and live live a free life to be able to do whatever
you want to do. Oh, you.
Know what I just realized? I have a picture of that

(44:12):
property I was just talking about queued up.
I don't know if you can see it though, but I can actually queue
it up. Let me let me show you this.
Yeah, let's try it. This is the property I was
talking about. Look at that.
You know what, right? And this is the house that
that's on the property. So it's like, it's amazing.
It's like this thing for $280,000.
It's what a, what an incredible deal.
Sorry, I just realized I had to queue up.

(44:33):
Yeah, No thanks. I was on.
I was on a webinar with somebodyelse so I had to queue up.
It's always good to see kind of the real deals, you know, like
that's an actual property that you took down and and making
some major money on. So kind of wrapping things up on
the show, what we do is a free book giveaway.

(44:53):
And so how what we do is we havethese particular books here that
we usually give away. I think you just.
Mentioned. How about?
How about my book? Your book is also on here.
No, I'll tell you what. I got something for you, OK?
All right. You want to give away?
I'm going to give away a digitalcopy to every single person
watching this webinar. Is that cool?

(45:15):
Awesome. Here's what we do.
I don't know if it'll work. I could try it, but do this.
OK? Go to your phone and send a text
message to the phone number 26786 to send a text message to
6786 and message the word hacks HACKS to 26786 and everybody who

(45:38):
does that will get a digital copy of my book immediately.
26786 Hacks, HACKS and you'll need a digital copy of my book
right away. Now you can.
Now you know, now that I took your Thunder away.
No, I I really appreciate you sharing that for free to all the
listeners. And I won't even make my 4
bucks. Yeah, so for our free book

(46:01):
giveaway, what we do is all you have to do is like and mention
which one of these books you'd like to win and.
This one. And after five days after the
air date, we'll pick one lucky winner.
This one is creating wealth. Robert Allen, I feel like you
were talking about one of his other books, one of the one that

(46:23):
got you started. Obviously this rich dad, poor
dad down here. That's the one that gets a lot
of people started as well. 10X rule Grant Cardone good stuff.
I wonder the best book. You wonder the best book that
you have in that pile. The E Myth Revisited.
I was going to say that. Is one of my favorite books in
that pile. Yes, there's also this one too.

(46:44):
E Myth Mastery too. I don't know if you've.
Had a chance to check that one out.
Yeah, I started. So I I actually like the E myth
we've visited is so good that all the other E myth books are
are OK. I will say that there's another
one. There's AE Myth Real Estate
Investor edition. You have to put up with a little

(47:06):
bit of oh fan Merrill talking onit or?
That's right, I I like. Yeah, Ephemeral is great, but
he's not the best author. So he's got good stuff in it,
but not the best content. But the stuff that Robert E
Gerber has in that book is really amazing too.

(47:29):
So it has a lot of the same concepts as E Myth Revisited,
but he's got a couple other different ones, different
chapters that are really cool. He talks about expansion and
contraction and like how our howour minds are usually closed
down for most of our life, just like sticking with the same
thing. And he says if you want to start
to build a business that's, you know, big and successful and

(47:51):
that you're not working in it, you're working on it, you have
to expand your mind a little bitand you have to change the way
that your mind works. So kind of goes along with some
of the stuff that you're teaching some of your students.
So financial, we have a program called financial IQ.
Actually, if you go to financialretreatsfinancialretreats.com,
financial retreats.com, you could find out about financial

(48:12):
IQ. It's very different.
It's, it's exactly that. I mean, we literally, we're
going, we're going to rewire your mind from the minute you
come. And it's just not just that, you
know, it's like somebody stands up and lectures you, you are
forced to do work that you've never done before around money
for three days. And I can't explain it to you
until you go, 'cause when you go, you're like, wow, this is

(48:36):
wild. I mean, you know, the course
material that we've written, I, I wrote it with a, my, one of my
partners who is a, a, who is a, has a doctorate in instructional
design. And we went into people's minds
in this in this program. And really when you leave this
program, your life will change. Maybe if you want to go, let me

(48:57):
know. You should go too.
But it's, it's an amazing program.
So financial retreats.com. And if you go there, you'll find
out about it. You actually can't even buy it.
You have to talk to me first. Awesome.
Well, thanks for sharing that too.
That's something I'm definitely interested in.
So I'll be hitting you up on that.
There was, there was one more thing I wanted to kind of get
into because when when you and Iwere talking in the past, there

(49:19):
is something that you were kind of talking about that I'd really
like the listeners to hear. You were talking about how how
you raise capital for real estate and other stuff and
you're explaining like what the magic of something like a 10%
return can be for someone that'slending the money.

(49:42):
Can you talk about the details of that and like what the
benefits are to, you know, someone who's just sitting on 50
to $100,000 that wants to make areturn and then like what that
would look like year by year forthem?
So you need to understand, the first thing you need to
understand is if you're a real estate investor, right, you need
to find money. You always need to find money

(50:02):
right now when I bring people along with me as a partner, even
if they're a lender, it has to be what's good for them and
what's good for me. OK, so first of all, there are
people out there who just don't want to invest in real estate.
They just don't want to buy realestate.
They, they don't want to deal with toilet trash and tenants.
Now, people out there, I guarantee you, you know people

(50:23):
with money. You might not even know, you
know people with money, but you know people who have 4 O KS or
Iras and they just they, they, they give their annuities, which
is the absolute worst financial product for a person ever.
By the way, if you have an annuity, if anybody says you
have an annuity, I'm sorry for you.
You know, your, your, your financial advisor ripped you off

(50:45):
Basically, he said give me your money, you can't have it back.
And if you, if you actually convinced us to give it back to
you, we're going to give you 10%less of your money.
I mean, it's too absolute worth financial product on our planet.
But if you have people that havethat have money, most of the
time in people's Iras they're getting between 4:00 and 5:00

(51:06):
and 6% maybe before fees. So after fees, maybe they're
getting 3 or 4%. They don't even know it.
And it's funny because I ask people, hey, you know, you have
money in your IRA. They go, yeah, I have 200,000 in
my IRA. Great.
What was your return last year? Well, my advisor told me I made
12%. I said, OK, so let's, let's do

(51:26):
this. Let's look at your statement at
December 2023. And let's look at your statement
at December 2024. Now, if you had $100,000 in
there and you made 12%, how muchdid you have?
And the answer's 112%. Right, $112,000.
Right, right. I'm sorry.
Right. Thank you. 112,000 rate.

(51:47):
That's how much you should have right, So I pull out their they
pull out their. All I said was play your
statements. Wait a minute.
I gave him 120,000. I only have 118,000.
Oh, so you lost money. I I can't, I mean, it amazes me.
Now look, somebody opens up their account.

(52:08):
They made 20. They made 20,000 under 100.
I'm like, OK, gay, you did great.
Maybe we'll do that again next year.
I have nothing to help them with, right?
I'm here to help them. I'm here to explain to them that
they're not paying attention to their money.
And I will say, listen, you madezero or you made one or two or
three or 4% of your money. How would you like to make a
guaranteed 8%? I'm like, wow, can you do that?

(52:31):
I'm like, yes, and that's real estate.
With real estate, you can give them a guaranteed 8%.
Now you can do anything you want.
I mean, you know, it amazes me that, you know, real estate, new
newbie real estate investors go could, could I borrow your
money? I'll give you 15%.
Why? Why are you giving so many 15%

(52:53):
and you don't? The answer's always the same
thing 'cause I don't think they'll lend it to me.
Let's say let's buy it at 15%. Well, first of all, if I have a
choice to lend a guy who's asking 8% for money and use
asking 15% for money, I already know my money is at high risk at
15%. You know why?
Because you're not even smart enough to know what a good deal

(53:13):
is or how to get how how to get money properly.
So that means that your deal already sucks because you're
going to be paying twice as muchmoney that you would have been
paying almost twice as much money that you wouldn't pay for
the money if you would have wentto somebody for 8%.
Which means that you're going tostruggle to make your deal work
where if you would have asked for 8%, you won't struggle to
make your deal work. So that's part of the criteria.

(53:37):
Part of the criteria is to making sure that the deal
actually works. If the deal doesn't work at 15%,
don't do it. And the guy lending the money is
just never going to see his money.
So he's just going to lose his money anyway.
So if I go and I say somebody, I'll give you 8% for your money
and they're like, well, so and so is going to give me 50%.
I said good luck when he doesn'tpay you back, I'll help you try

(53:58):
to get your money back but I don't think it's going to work.
And then I explain to him what the difference is and my
paperwork is solid. My paperwork protects my lender
so well that they want me dead. Let me explain so you you know
what happens it with a bank. So you know, I I take money from
a bank. Let's say I buy a property for

(54:18):
$100,000 and I borrow whatever $80,000 because the bank will
only give me 80% right? I I borrow that give you more
certain cases but I I borrow $80,000 what happens if I don't
pay the $80,000? What does the bank do?
A. Default on, are they?
Yeah, you're defaulting on the loan and.
Then what? So what do the banks do to get

(54:40):
to protect their interests? Yeah.
And then what? Notice and then they'll
foreclose on it. Right.
So foreclosure, this is, this isthe thing.
So Ian, how long does it take for an average person, average
bank to foreclose on a person? Do you know just off the top of
your head? Three years, Yeah.
I mean, whatever, right? I mean, it, it shouldn't take
that long, but it does. So two years, three years, four

(55:01):
years. Some people have been in your
house for eight years. So Ian, you lend me $200,000,
right? And I say, hey, don't worry
about it. The property's worth $250,000.
And if I don't pay, you get the you can foreclose the property.
And how long did it take to foreclose?
Couple years, yeah. Do you want to lend me money?

(55:25):
No, there's. Of course not, right?
Of course not. You're like, wait, I don't want
to go through foreclosure. I don't want to have to our
attorney. I, you know, forget it.
This is a bad idea. Well, Ian, what if I did this
instead? What if I gave you something
called the confession of judgement?
And the confession of judgement says this.
It says if I missed three payments, you automatically get

(55:47):
the property. Now do you want to lend me
money? Yeah.
Hell yeah, right. I mean, as long as the deal's
good. Right, so listen to this right?
So if if you lend me 200,000 or $250,000 property, I missed
three payments, how much money did you make?
50,000 right ish right? Yeah, immediately.

(56:08):
So do you want me making my payments or not?
I want you to die. Right, see, right.
If I don't make my payments, it's better.
Yeah, right. But so, so two things.
One is I want to make the payments and what do you care?
You'll be so happy if you get your payments every month.
Now, I'm not sure if I can do this because the screen is weird

(56:30):
the way the split screen is withyou.
But let me see if I could bring this up to show you like the,
the, the, the absolute clincher this to this.
Let's see if it'll work. Start with this.
OK, so this is something called an amortization schedule.
Yeah. And an amortization schedule is
very simple. So if you can see the whole
thing, that's fine. Now, if you've seen the whole

(56:50):
thing, that's fine. So $200,000 and 80%, right.
So here's the deal. I use a 30 year amortization
schedule and I tell a person I'll pay them back in five years
with an option for another five years.
So let's talk about that. So they lend me $200,000 and I
pay them 146753. So if I take 146753 and I let's

(57:17):
see if I get a calculator to show you this and I take 146753
and I times that by 60 payments from I said five years, right?
Times 60. I've paid that person
$88,051.80. Yep.
Now check this out. After 60 months I still owe them

(57:44):
$190,338.32. Is that a killer deal?
Yeah, for, for the lender and for you.
Exactly. So it's great for the lender.
So the lender now is like, wait a minute, I lent you $200,000 in
five years you still owe me $190,000 and you already paid me

(58:07):
$88,000. What a remarkable deal that is
for them. It's a great deal for them.
And here's the thing, if you want to, Mr. Lender, I'll do it
for 10 years and at the end of 10 years, right?
So if we go back to the calculator, 66 we take, I'm
sorry, 60 we take the same number.
We take 1467 53 * 120 that's 10 years, $176,103.60.

(58:39):
I paid you and I said owe you $175,000.
I paid you more than I owed you.Already.
Do you understand why banks do this now?
That's why banks lend people money.
So if you want to, if you want to become a money lender and as
long as your paperwork is good, you get a confession of

(59:00):
judgement, you get a mortgage, you get a promissory note and
your paperwork is good, the dealis phenomenal for a lender.
I have, I have a board. It's funny, I have a board in my
office right here and the board in my office is a list of people
begging to lend me money. Now how many people do you know
that say I can't find money for any deals?

(59:25):
I have $2,000,000 sitting here going please borrow me.
That's a great problem to have. Do I have to do is find a good
deal? Yeah.
Money is so easy to find. Getting the deal is what you
have to do next. You find a deal, the money will

(59:46):
come. Do you want to know why?
So you want to know why most people don't have money for a
deal? Since they don't know how to
build that database, they don't.Know how to No, they don't have
the deal under contract. If you have a deal under
contract, you'll find the money.A good deal under contract.
Well, fine, and it's funny. If you have a bad deal on the
contract, you won't find the money anyway, which is really

(01:00:09):
funny too. But if you have a good deal on
the contract, it's really easy to find the money.
And until you know how to find agood deal, you're never going to
find money. And the problem is people like
this, like, I need to find the money before I find a deal.
Well, what for? How much money do you need for
your deal? You have exactly the amount of
money you need for your deal. You know what that is 0 Because
you don't have a deal. Everybody was like, oh, I know

(01:00:30):
what to do with $1,000,000. I bet you don't.
I do an exercise with people on how to spend $1,000,000 and they
can't do it. Look at you man.
You're like holy shit, I should have talked to this guy a long
time ago. Yeah, I'm trying to figure out
how to get signed up for your your mindset class, man.

(01:00:51):
That's. The Financial IQ class.
Financial IQ class. Can you make it?
Yeah. Can you make it?
July 18th, 19th and 20th. That's cutting it close.
I'll see. I'll see what I can do.
OK, so here, here's a mindset problem, right?
Do you believe that if you go tofinancial IQ, your money mindset

(01:01:11):
would change dramatically? I think it would.
OK. Do you what, what benefit do you
think you would get from that? I mean, just a lot of the stuff
we kind of talked about today, you know, just the way to not
really ask for money, but you know how to create win wins for
both parties and how to deploy that money the right way.

(01:01:36):
Like you said, finding the deal first then find on money will
come. Hold on a second.
That's what would happen. That's what you could do with
the information, but how would it change your life?
I might just be able to do more deals I'm sure.
OK. And how would that change your
life? I'd have more capital and.
And how would that change? You want I'd be able to quit my
job and travel to the world and do all the things I'd want to

(01:01:59):
do. OK.
Are those things important to you?
Yeah. OK, so the date is July 18th,
19th and 20th, correct? Uh huh.
What could you possibly be doingon July 18th, 19th and 20th that
keep you from doing this? That's more important than you
being able to travel and quit your job.

(01:02:19):
Yeah, I mean, that's a good point.
It's mindset, man. Yeah, it's mindset.
You either figure out how to do it or you don't.
The difference between people who have quit their job and are
financially free of the ones whotook the step and did something

(01:02:40):
to do it. Take a step.
Now, if you don't believe that this step is going to be the
answer, then don't do it. But if you believe this step is
going to be answered, I'm telling you right now it will
be. But if you believe this step
will be the answer, then you should be asking me what hotel
should be meeting, at what time should I meet there?
How much is it, When can I, whencan I, when can I, can I come

(01:03:03):
earlier? Whatever it might be, right?
That's what you should. That's what should excite you.
And if it doesn't, I want you toremember this conversation for a
really long time. Every day when you wake up and
go to work, I want you to remember the conversation.
And then I want you to think about how you didn't go to
Financial IQ on July 18th, 19th and 20th.
All right. Great advice, great stuff.

(01:03:25):
Thank you again for coming on the show, Larry.
You got it man. I actually have to run.
I actually have a another webinar in exactly 6 minutes.
OK. Well, thanks again for coming on
the show. We really appreciate all the
stuff and we'll talk to you soon.
And don't forget if you guys want 826786 text and message
hacks and you get a copy of my book.

(01:03:47):
Also, if you want to find out more about me, go to
contactlarry.com. Contact larry.com you'll get my
contact information. You can even make an appoint
with me and you can talk to me about financial IQ, which Ian
might be there, I don't know. Larry's approach is direct.
Real estate is simple, powerful,and predictable if you know what

(01:04:08):
you're doing. If you're tired of gambling in
markets you can't control, Startlearning how to earn consistent
returns on real estate. 8% may not sound that flashy, but as we
just heard, the profit potentialfor lenders is just absolutely
insane. Thanks, Larry.

(01:04:29):
I really appreciate the time. See you, man.
Thanks so much. Take care, all right?
Right.

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RealPropPro Podcast Ep 13 - Larry Steinhouse | June 19th, 2025

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}RealPropPro Podcast Ep 13 - Larry Steinhouse | June 19th, 2025