December 8, 2023 • 33 mins
Ever thought about how the real estate investing world operates? How can the right funding strategies help you secure your dream property, and where do mentors fit into this equation? Join us as we unravel these questions in an enlightening chat with Victor Johnson, a seasoned real estate investor and mentor, and Jacquelyn Jackson, a loan broker guru.
Victor's extensive experience in the real estate market shines through as he demystifies various funding strategies. Whether it's insights on traditional lending like FHA loans with a minimal 3.5% down, the zero down payment benefits for veterans, or the significance of a healthy credit score, Victor's advice is gold dust for aspiring investors. He also emphasizes the power of diligent research in unearthing the best funding options.
Moving on, we deep-dive into the critical role of mentors in the real estate investing journey. From considering factors like money, insurance, and inventory for multi-family property purchases to the pros and cons of such investments, Victor's guidance is invaluable. We discuss why an active real estate investing mentor and a knowledgeable agent can be game-changers in your investing journey. So, whether you're a novice or a pro in real estate investing, this episode promises to leave you with some food for thought and strategies to consider.
A loan brokerage firm that acquires funding for business owners and real estate investors.
Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.
If you need assistance in obtaining funding, email us at podcast@tdjequityfundinginsiders.net. Tell what the scope of funding is needed and the amount. A broker will contact you to discuss your funding needs. And remember, at TDJ Equity Funding, we do not force your funding needs into a lender's box but find a lender's box that fits you!
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Episode Transcript
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Speaker 1 (00:13):
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
Speaker 2 (00:47):
Welcome back to TDJ Equity Funding Insiders, the
podcast that brings you theinside scoop of funding for your
business and real estateinvestments.
I'm your host, JacquelineJackson, the long guru
extraordinaire, here to serve asteaming plate of financial
wisdom with a side of reality.
Today we have a guest, I guess.
(01:08):
Host is Victor Johnson, who isnot only a real estate investor,
but he's also a mentor.
You know the kind of person whocan turn a dilapidated property
into a money-making masterpiece, and he teaches others how to
do the same.
So buckle up, insiders, becausewe're about to dive deep into a
world of real estate investingwith an emphasis of funding.
(01:28):
Welcome, welcome, welcome.
Speaker 3 (01:31):
Thank you, Jackie.
A pleasure to be here today.
I really appreciate the invite.
Speaker 2 (01:34):
Great and we're glad to have you.
We're looking forward to youbecause, like I said, our team
has already been researching alot of stuff that's going on
with the real estate.
As loan brokers and some of youguys, as you know, we deal with
people with real estateinvesting, but what we have on
this show is to actually letpeople know what is the insides
of doing it.
You've been doing it.
So what I want to start offwith if you could tell everybody
(01:55):
a little bit about yourself andabout your real estate journey.
Speaker 3 (01:58):
Absolutely so, victor Johnson.
I'm an author, I'm a speaker,but I'm also a real estate
investor.
My wife and I have a companycalled 555 Equity LLC.
That's where we do all of ourinvesting in real estate.
We have started buying rentalproperties single family rental
properties since 2015,.
All over the country SanAntonio, carrollton, texas,
(02:19):
kansas City, atlanta and we are.
Our most recent investment isin Punta Cana, dominican
Republic.
We just bought that one, sowe'll talk a little bit more
about those.
But through my journey, I had toclean up my credit.
I had to get better jobs, I hadto figure out how to get myself
together mentally, and we wereable to just go from one
property to the next and be veryunique in some of the ways that
(02:40):
we acquired the funding forthose.
Of course, we had our owncapital to get going, but
sometimes you don't want to putall your money into a deal to
make money.
But that's kind of what I'mdoing.
I work for another financialinstitution here in the Dallas
area now, so I'm helping a lotof people that look like me to
start investing in real estate,whether it's first time, home
buyers, luxury buyers,developers or investors.
(03:03):
But real estate is the key towealth and it's the key to
legacy building, and so that isreally my overarching message,
whether I'm doing it through mybook, my talks, interviews like
this, or through my work.
Speaker 2 (03:14):
Okay, great, great, so wonderful.
You are a great candidate to beon with us Because one, like I
said, we're being real, we do isunfiltered, is what we are.
So we're not all about thenames just because we want the
professionals or the industryexperts to come in and just give
us the truth of what's reallybehind, like, I guess, the ugly
part.
You know because everybodythink about the money, but I
(03:34):
know you didn't get through theugly part.
Okay so what they said on theugly part, we're going to start
off with our questions, becausethese are questions that we
actually get from my listenersand they kind of send them into
us and so we try to format itwhere you could ask those
questions.
So some of the questions theyhave basically is for one your
experience.
You've already stated to whatthat is, but in the process of
(03:55):
doing your real estate investing, let's talk on that.
What are some of the bestinvesting deals that you have
seen that you think are prettygood deals right now?
Speaker 3 (04:03):
So for me, the more doors that it has.
So if it's a duplex, triplex,fourplex, those are great deals
because you have one loan forthat building but you got
multiple streams of incomecoming in from each door.
So if you're in a positionwhere you can buy a duplex, a
threeplex, fourplex or even gocommercial into five and up,
(04:25):
that is definitely the bestsituation right now.
Obviously, in most majormetropolitan there's going to be
a shortage of inventory.
So being comfortable withlooking outside of your key
market maybe 50, 75 milesoutside of a major city
definitely smart right now.
There are lots of people who in2020, 2021, that paid too much
(04:50):
for properties and they're justduring COVID, yeah, and because
we saw accelerated appreciationrates on properties.
people were like, oh well, I'llpay $50,000 over the asking
price and now they're sittingback just tripping because they
spent too much for a propertyand they can't refinance it
because the rates are threetimes higher than they were at
(05:12):
that time.
So sometimes you can find gooddeals through those motivated
sellers, people that are justeager to get out of the deal and
just move on to something else,and so as an investor you got
to be keen to looking for thoseopportunities that come up.
You might have to do a littlebit more marketing to find those
people, but those are gooddeals and definitely the more
(05:33):
doors that you can buy in onetransaction, the more profitable
it should be.
Speaker 2 (05:38):
You know, some of you do the other based on another
one, absolutely, absolutely,which, which I agree, because as
well we deal with investorsgetting them the money, and also
we're investors are me and myhusband as well.
So, but I will talk more fromthe money side.
What I try to tell investorswhether you knew a season when
you say, go look for those dealsat the same time you need to
(05:59):
look at the economy.
What is happening?
Yes, everything is not meantfor you to bite at the same time
and even though other peoplemay not be biting, it might be
your time to bite.
So I think, along with whatyou're saying, is that, yes, you
do need to look at those and Ithink those are really the
better deals, because personally, I prefer those over single
family, that one house, becauseI look at it like this if that
(06:21):
tenant doesn't pay me, there yougo.
But if I got, four people andone don't pay me I still got it.
So we have to kind of think ofit in another way.
I think that we've seen itworks If you are a person that
can stay in one of the units andrun out the other that's a
great way to get you in, youknow as well.
So I think that's a good way.
(06:41):
I just told a couple that I wasactually looking at buying a
house and I think that's great.
But I said it's just you andyour little girl.
Why don't you all just get aduplex of four players and rent
the rest out?
She was like yeah.
Wow.
And that's what she's doing.
Speaker 3 (06:54):
So even with traditional lending you can
still get FHA loans 3 and 1 halfpercent down because you're
doing that way, right, right,but you're buying on our own.
Speaker 1 (07:04):
If you own our occupying Right, you know.
Speaker 3 (07:06):
So you got that.
If you're a veteran out there,that person can take advantage
of less money at the closingtable.
Zero, you know, zero downpayment, and they just pay the
closing costs.
They're tax free.
And put your tax free on afourplex instead of a single
house.
So that's what I've beentelling people.
It's the same time and it'sgiving tons more income.
(07:26):
It's covering you all yourpayments.
You only have to let the peopleknow that you're the owner of
the house.
You know what I mean.
Speaker 2 (07:31):
You can talk about it .
Speaker 3 (07:32):
Yeah, that's not.
Speaker 2 (07:33):
Yeah.
Speaker 3 (07:34):
Right, exactly, you know that's the way to go.
Speaker 2 (07:36):
I would say and that's what I'm saying and
that's why I wanted to bring youin, because a lot of stuff that
people are seeing now is what'son the internet, what YouTube
somebody's selling you to bethis, somebody's selling you to
that.
But what I realized that youwould, like my listener would
like to know can somebody justtell us what's going on so we
can have an ideal of what we'redealing with?
And that's why I said, like,definitely you come in and you
can kind of help us with that.
(07:57):
So now we're talking about themwith the property and what type
of property you're going to get.
So let's talk about for, as,when it comes to considering
funding, what should they have?
What strategy do they do whenit comes to getting funding for
real estate?
What do you think?
Speaker 3 (08:11):
So first thing is, don't approach it from.
How can I get in this housewith as little little down, as
little credit?
Speaker 2 (08:20):
as possible.
No, this is an investment.
Speaker 3 (08:23):
So you're already going to miss out on some of the
advantages of you living inthat house.
Like you got to bring more tothe table Usually 20, 25% equity
or money that you have to bringas a down payment because this
is a commercial property.
Now You're an investor.
So having enough bread to bringto the table and they typically
want to see reserves, which isthe amount of what that payment
(08:47):
is going to be times about sixmonths.
You need to have that available.
You still got to do propertymanagement.
You still may have renovationsthat you want to do.
So have enough money First ofall.
Like, don't try to just youknow there's people out there
online that you see or you canget a house with no money down.
Speaker 2 (09:04):
Those days are gone, man for people to say that and
people to believe that they likeone.
Look for something I can dowith no down payment.
Right, you can live out thereon that street right now.
Honestly, you're not ready.
Speaker 3 (09:14):
You know what I mean.
Like mentally, there's a wholetransition that has to be done
and then there's a wholetransition that happens for you
to get that money together toeven buy.
So there's that the creditpiece is important.
There are ways to do it withoutyour credit being considered,
but at some point you'reprobably going to need to
refinance out of whatever sourceyou use to purchase that
(09:36):
property in the beginning, andthat first source is usually
going to be a higher interestrate.
So at some point you'll want torefinance out into a lower
interest rate.
So your credit will come intoplay at that time.
And I would say, you know, 680is a good number.
You could get in at 640 and 620, but we're talking about what
(09:57):
is the best strategies, and Isay 680 and up is going to give
you the best opportunity to getgood, fair funding, less hangups
down the line, and so thosehaving enough capital and having
a decent credit score in thebeginning is very helpful.
Speaker 2 (10:12):
Right, and that's what some people say.
What we say is loan brokers.
As loan brokers, we've donepeople as low as 500.
For sure.
And we can, because that's 500along with the reserves.
So we're not now you know, I'mjust saying we have people as
low as 500.
We deal with majority of them,we don't.
But I've had some come throughlike that.
And it turned out to be prettygood.
(10:32):
And I'm just saying becausepeople do what they're aware is
not necessarily always based onthe credit.
Speaker 3 (10:37):
Right.
Speaker 2 (10:37):
It's based on the integrity of the property that
you have.
So if you have that property,when we say integrity we're
talking about the numbersworking.
Speaker 3 (10:44):
For sure.
Speaker 2 (10:45):
And I'm talking, I'm the lender that gives you the
money.
So we're going to look at thatproperty.
Now let me tell you what acredit does come in on our side.
Say, for instance, you couldeither come in and put in 20%
because you have a credit scoreof 760, or you can come in and
put 30% because you have acredit score of 640.
Right, so that's when that kindof play up art, right.
And also, as people get intothis, we tell them, having your
(11:07):
history, your resume, usuallywant to know within the last
three years, how many rentalproperties have you fixed Right
or have you sold Absolutely.
So you want to get one or twoproperties under you and
sometimes people have to startwith the credit where you are,
that's true.
So it's where you are is whereyou actually will go and do the
research and see what's best foryou.
That's what we try to explainpeople, why we have this show,
(11:29):
cause a lot of people don't knowthey have options.
Speaker 3 (11:30):
No, that's true, and I'm glad you said that, because
I am here to encourage peopleget the house any way possible
in the beginning, right?
Because even if you got startedthe 500, even if you got to,
you know, scrape up some fundsto borrow it.
Whatever is, you know yoursituation but at some point you
do want to take care of those.
(11:51):
That credit piece, because theinsurance is going to be
different for you.
You're going to pay more oninsurance, you may have
different uh, especially ifyou're going in in the strategy
we talked about where your owneroccupant.
Then now you're talking aboutmortgage insurance rates and
stuff like.
So the credit plays so muchmore than just the actual
financing of the money thatyou're looking for.
(12:11):
But those will be pieces that.
So my first rental property webought in San Antonio.
I was living in Austin.
We bought it in San Antonio,the house was 75,000.
We were going to put another15,000 into it.
So we'd be about 90 grand intothat deal and the plan was I use
hard money to get that dealdone because I was going to need
(12:31):
to rehab going.
I only had about $10,000 incash and we put that down to
close on the property andtowards our initial draw for the
rehab and then the plan waswithin 30 days, all that'll be
done.
I have a tenant in place and gorefinance that house.
Well, my credit score was like648.
(12:51):
It was I needed to be at like650 or something, and so I had
to wait to get the refinancedone.
So what that meant was mymonthly payment to my hard money
lender was about $1,300 a month.
Well, that's what I wascollecting the rent.
So I got zero cash flow out thegate.
Six months in, when my scorewas better and had my income
(13:12):
solid, I refinanced.
My cash flow went to like $400a month.
So from a numbers perspective,they did make a difference to my
credit to be better, and thatbecause I did the buying whole
strategy, you know, buying itand then refinancing it down a
line.
Speaker 2 (13:27):
And so what I want to say too and this thing is like
you and I we go into isunfiltered as real, so we can
have this discussion and notnecessarily we're going to agree
on everything For sure.
What I'm going to say from theloanbroker, since we deal with
giving money, we have it where,like, what I have to explain to
people is that it's a commercialdeal, but, like you had
mentioned that, oh, that creditgoing to affect the commercial
insurance, not necessarily on acommercial deal.
(13:49):
Okay, Okay.
Understand.
Let's say what's business,because a business commercial is
.
People don't understand if youget a residential property
that's non owner occupied, noton.
Speaker 1 (13:59):
You're not going to live there.
Speaker 2 (14:01):
That is a business all day.
I got a call from one of myclients that I've done some
stuff with before for hisbusiness lending, but he wanted
to refinance the house that wasout of the.
That was basically in NorthCarolina, okay, well the thing
is he called me.
He said I call my mortgagecompany.
You know it was his mother'shouse, okay, and I called him,
say we wanted to refinance.
I can cash out, you know, giveme the horizon.
(14:21):
He said they told me they needa utility bill.
He said what kind of stuff isthat?
I said well, they do need autility bill because you're
refinancing that home as if youlive there, but you have a
rental there, because you justtold them to ask you where you
live.
And you said I live in Kentucky.
So they're like well, it's arental property.
He kept saying no, it's not, butit is.
(14:41):
So I think even this is even myfirst time forced lender me,
loan me landlords Cause you knowsome people are forced to be oh
, yeah, yeah, yeah.
So in this case he was becausehe brought his mother to him and
so he had to put somebody in it.
So you have to understand onceit's a non owner occupied
resident, you have someone inthere.
That's no longer residentialRight, that is commercial.
(15:02):
So you have to.
You should change yourinsurance to reflect that.
Okay, make sure your mortgagecompany is right, it's
understanding what you're doing,because the last thing you want
to do we've seen it you want tofile a claim as a residential,
and it was commercial.
You're going to have a problem,yeah.
And that's what people don'trealize, like why are they doing
it?
I say because you can't.
So we want to make sure peopleunderstand non owner occupied.
(15:25):
If you do not live thereanywhere, it is considered
commercial all the way?
Speaker 3 (15:30):
Absolutely no.
I'm glad we clarified that.
Yeah, we clarify that.
Speaker 2 (15:34):
So I think that is something good to know.
When you say and I'm with thefunding, so we do, so
understanding.
Let's look at the real estateinvestment opportunities that
you've seen, like you said, youthink was really good is that
they do the doors, and I likethat.
I never thought that if the moredoors you can buy, the more you
can Absolutely.
Well, let me ask you this butbut compared to the single
family?
You said that I would rather gohere.
We know what sounds good to gowith this more money and
(15:57):
everything.
In that case, what is thedownside of me going there?
Speaker 3 (16:01):
The single family.
Speaker 2 (16:02):
Single yes, what's the downside?
Speaker 3 (16:03):
you see, you've seen the downside of having a single
family versus no having themultiple doors.
Oh, oh for sure.
Well, you got more propertiesto deal with, right.
You got more tenants that yougot to manage, right, More
people, individuals, to dealwith.
In that situation you do haveto have probably a little bit
more money than if you werebuying just one single family
versus a quadruplex, right?
(16:25):
So there's the money factor.
There are renovations thatcould come up, that you know
where.
You got more toilets beingflushed, and you know I mean
pipes, you know I mean hey,something happens.
You have, especially in afourplex, more kids probably in
that situation.
So then from the insuranceperspective it could be a little
(16:47):
more dangerous, you know, justbecause you have it's more
families in there.
Speaker 2 (16:51):
You got to put more.
You know I have to be put morecoverage, Need more coverage,
Absolutely.
Speaker 3 (16:56):
So those are the downsides Um.
Speaker 2 (17:00):
I don't think it's downsides as more as we need to
say the other side.
The other side, that is truebecause it's still making money
for yeah.
Speaker 3 (17:06):
And, uh, inventory is low on single families.
There's definitely low onfinding fourplexes, quadruplexes
, triplexes, right, so they'reharder to find those.
So when you do find one, youwant to be ready, go ahead and
get your offer in how your teambuilt up so you can, you know,
get an offer submitted asquickly as possible.
So those would be the othersides to the multi families that
(17:28):
I would say.
Speaker 2 (17:29):
And I'm just saying cause people are looking at
trying to do so much differentthings.
But we talked about how realestate investors we're talking
about you know some things thatthey need to be aware of, and
EDC.
That's why it's important thatthey have a mentor, and I know
that's what you do For sure.
So I want you to let ourlisteners know.
Having a mentor now notnecessarily we would love for
you to come and be with Victor,but long as you get a mentor, I
(17:52):
know we've talked before he'ssaying how was they?
get somebody, jackie.
So tell me in a mentor, whatshould they look for for a real
estate investor?
Speaker 3 (17:59):
Look at me.
Look at me.
Let me tell you something.
Do not just find a mentor offof Instagram, tiktok, youtube.
That's good information.
You need to get somebody thatcan, that's done it and is doing
it, to actually consult andmentor you right, because this
market is, it's it's worldspinning, like you know.
(18:21):
It's like riding a rollercoaster and what somebody
recorded in 2020 or 2021 andposted out there and chopped it
up and you came across thatfootage.
It may not be the best, it'snot For you, exactly Right In
2023 going forward.
So find somebody who will bebrutally honest with you about
(18:42):
what's going on, what your needsare, and really they are
willing to look at and analyzethose numbers with the people,
because you this is taking allof the emotions out of this is
when you're investing.
This should not be.
I had to mess with my wife allthe time that first little
rental property.
She's like oh, we should dothis.
This is a rental property.
This is not going to be thehouse that we want to be hosting
(19:04):
parties and parties and allthat no.
Speaker 1 (19:06):
I'm with her.
Speaker 3 (19:07):
This is one of them.
Things where this is, it needsto be clean and functional.
Like you know, that's keep itbasic, but we help run people
through the exact numbers whenI'm doing mentoring.
But find anybody who's activelydoing real estate investing
that can walk you through thetype of strategy that you have,
because the strategy is a bigpart.
(19:27):
You might find somebody who'sgood at wholesaling, but they
don't really do buy and hold.
They're not truly going throughthe full process of closing and
getting marketing for tenantsand managing tenants and putting
systems in place for tenants tobe managed Right.
So it's always good to havementors to walk you through it.
(19:48):
It's not to say that you won'thave mistakes and you won't have
challenges, but it reduces thatand you still got somebody
there that you could talkthrough.
Hey look, this is the type ofscenario I came across.
What's the best next step?
You know sometimes that's allwe need to know is the next best
step, instead of the grandsolution for the whole thing.
(20:09):
It can be overwhelming.
So having mentors is criticalin the real estate investing
space.
Speaker 2 (20:14):
So when you first did yours, did you have a mentor?
I did, I did.
Speaker 3 (20:18):
So I paid for a program out of San Antonio.
It was a eight hours a day,saturday, sunday type of course.
And then they of course offeredyou hey, we can do one on ones,
you know we can get yousomebody.
I had $10,000.
I didn't have money to be put intowards a mentor and my down
payment and cleaning up creditRight, so I had to make a
(20:38):
business decision at that time,and my business decision was I'm
going to take these books andthese notes and all the hundred
questions that me and my wifeasked over these two days, and
we're going to make it happen,and we're just going to do what
they said is to do.
Next.
Let's get an agent.
Okay, I was fortunate that theagent was also an investor him
and his wife.
Speaker 2 (20:58):
And then let me say that, not to break you up, when
you and we talk about realestate investors, when you get
an agent, get someone that has aproven track record for real
estate investors.
Speaker 3 (21:09):
Yeah, they may say it .
Speaker 2 (21:10):
But how you know is based on the conversation.
Oh, he won't take it for twominutes.
Speaker 3 (21:14):
Yeah, if you don't mind, let's talk a little bit
with that real estate agent.
Speaker 2 (21:19):
What they need to look for, because a lot of
people have a misconception,absolutely.
Speaker 3 (21:22):
So in a typical agent they're looking for what's the
best school districts, what'sthe best you know schematics of
the house and they're stillrunning numbers for you.
With the investor minded agentthey're helping me find areas
that are developing so I'm ableto still buy it at a kind of
somewhat wholesale price.
(21:43):
And I know that within a two,three year window that that
property is going to be valuedat a much higher price, right,
I'm able to talk to them aboutthe different financing
scenarios that I might need.
You know they'll have resourcesfor contractors, for title
companies that might need to dospecial things for me as a real
estate investor.
(22:04):
So having that investor mindedagent is critical because they
also have pocket listings.
They have listings that otheragents that are thinking about
listing a property but they'lltell their real estate friends
First.
Hey, look, you know, I know yougot some investors on your team
.
Right, you got any cash buyers,because real estate agents love
(22:25):
cash buyers, right.
So that investor minded agentwill have pocket listings where
they can say, look, this was noteven on the market, nobody's
bidding on this house.
It came across me through areal realtor friend of mine.
You might want to look at itand they can go through those
numbers with me as an investorand not just as a retail buyer,
right, right.
Speaker 2 (22:45):
It's really critical.
It's a good point because, likeI said, all the year they come
to us.
They need the money, but youknow it's about having that
resource.
Therefore, you're having thoseconnections or that team.
That's like a team.
Speaker 3 (22:56):
Right, that's right.
You got a real team.
Speaker 2 (22:57):
Yes, your team that you need to have, and that's
where we know mentorship iswhere someone can direct you how
to develop your own team and,like you said, if they're
missing certain parts that youneed, then don't make them your
mentors, just don't.
And you write on that.
Speaker 3 (23:10):
And let me say this part too Jackie, Be okay with
saying no to people Likeeverybody wants to help you.
Everybody got advice.
All the advice ain't goodadvice.
Even information you hear mightnot fit to your situation Right
.
Speaker 2 (23:25):
But doesn't mean it's wrong.
It doesn't mean it's wrong.
It may not fit you.
Speaker 3 (23:29):
But so many times we're afraid to hurt people's
feelings.
This is business.
You're about to invest whatevercash you got in hopes of
growing that money and you don'twant to, like, put your
situation in jeopardy or at riskbecause you don't want to hurt
somebody's feelings.
Man, they're gonna be alright.
Speaker 2 (23:46):
Yeah, they're gonna be alright, and I said trust me
you sound like a man that beenthrough it.
Speaker 3 (23:50):
I'm saying it because I've seen it, even with clients
that I've mentored.
It's like well, you know, thisis my cousin and I just really
want to make sure that that'sworse, you know nah man come on.
This is your financial future,that you're talking about, your
kids future.
Be smart about how you moving.
Speaker 2 (24:03):
Right and how you do it.
And, like I said, we're justtalking about all this together,
worse, together, because whenyou go to, like, say, for
lending because this is afunding podcast when you deal
and come with us, at our lendersand everything, they want you
to be successful.
So what you're saying is thethings they need to look at so
they can be successful, it's notjust about getting the money,
but it's like you said, it's astrategy.
So they have to have a processto think this thing out.
(24:25):
Now, something I'm gonna add toyours is really good.
I tell people when I have youknow they start now and they
like well, I'm gonna give mybrother, I'm gonna give my
cousin.
We're gonna try to do thistogether.
My thing is this don't get mewrong we love family and friends
.
Speaker 3 (24:36):
Right.
Speaker 2 (24:36):
But you really need.
You correct me if I wrong.
You need to evaluate if they'reemotional.
Are you emotional and you forto bring them together?
And then you find out once youget together.
Oh my God.
Speaker 3 (24:47):
Yeah.
So yeah, I can speak on that.
Speaker 2 (24:49):
Yeah, I get it in your face.
Speaker 3 (24:50):
So with the property we just bought in Punta Cana,
dominican Republic is a condo,so we own a unit in the condo,
okay, and we couldn't mortgagethat property.
We had to have cash.
This is a.
We own that outright.
We had to bring a certainamount of cash everybody to the
table.
So I'm working with my sistersand I love my sister.
It ain't.
Nobody can mess with my sisters.
(25:12):
But when we start talking realestate, okay, we need to get our
operating agreement together.
Who's going to do what?
I need everybody.
Take this dis assessment becauseI need to know how you move
when it comes to analytics, howyou move, are you more
interpersonal?
Are you people person?
Are you more structured anddisciplined?
Like I need to reallyunderstand how you move.
I'm your brother, I know howyou move, but as a business
(25:34):
partner, I don't know how youmove like that.
Right, and have thoseconversations, those ugly,
uncomfortable conversations, upfront.
Those are hard.
Get them in writing, get itsigned and quit downloading all
these agreements off of Googleand go get you an attorney or a
rocket lawyer or something outthere.
That's a legal document foryour state.
So I just want to say that.
(25:55):
Right, because you say hey, Isaw it in your face.
Yeah, yeah, yeah.
Speaker 2 (25:59):
And that's basically what it is, and that's why we're
here.
We're trying to help people,not to actually go down the road
.
So it's not the best road forthem, because a lot of time, as
you know, people know but theyjust don't tell us.
And then they didn't watch usact like what a fish out of
water, because you know and theycan tell you what you can do or
where to get the water.
So that's what I like about youand your mentorship program is
because you've realized I wentthrough all this and I've been
(26:21):
going through this.
This is.
I just wanted this and eventhough you had, you see, so much
problems, that's why you try todo it to help people.
Because it is a struggle andsometimes, most time, we don't
get the right information whenit comes to real estate.
I know because they come intoour office and they believe well
, I want to have it, they wantto have us to do the real estate
(26:42):
investment as if they arepurchasing a home.
I said doesn't work that way,right, you know, if they offer
you prepilities, that's whatthat is.
On commercial you know whereyou know the FHA and all those
loans don't allow certain stuffyou know.
For that I say so, it's not thesame and they really believe in
they are.
They know how this supposed towork.
It's not going to work.
You know.
We're going to tell you whatyou got to do step one, two,
(27:03):
three, four to get this money.
And there's no deviating in.
You can try to get around it.
Speaker 3 (27:07):
Right, right, it is what it is, yeah.
Speaker 2 (27:09):
Yeah, they try to get around and say, hey, I can do
this a better where I have itwant to go.
So I think that's good.
You know, like I said, we'rebeing real because we've been
there and that's what you'reshowing them.
Yes, you want them.
I also want everybody to beable to get in touch with you if
they want to, to contact you.
So definitely say your websiteand we're going to put it on our
video as well, so let everybodyknow what your website is.
Speaker 3 (27:28):
So you can visit my website at be the victorus.
B E, t, h, ev I, c T O R.
Dot us, not dot com.
Dot us be the victor.
You'll see my programs outthere, my coaching link is on
there and all that that isavailable there.
What I want to say also is,well, I love people connect to
(27:51):
me on LinkedIn, victor V Johnson, on LinkedIn.
That's my favorite socialplatform.
But back to kind of thatmentoring thing.
Don't learn how to do thisthrough 30 second reels, like
don't learn how to do this bycompilations, you mean, you mean
everything at 30 seconds.
Speaker 2 (28:09):
Man like people be sending me stuff.
Speaker 3 (28:12):
Oh look, this.
All I got to do right here islike man Land, listen.
So get you some idea.
And this is a great show.
I love this because you'regiving them real information.
We're not cookie cuttinganything Like.
Every situation is unique.
You can start out with astrategy, but once you get in it
, that situation gonna becompletely different than maybe
(28:33):
how mine was or how yours was.
So be open to that and that'sthe key is to continue learning
and, like even the realtor thatI said, they were investors so
they were able to mentor me andmy wife.
But our information learningdidn't stop there.
We were going to there wasanother group of couples that
were doing these buying holds,and so what they were doing is
(28:54):
they were buying ugly house andthey said, hey, come on out
Sunday at two o'clock.
We want everybody's ideas abouthow we should restructure this
house and what you think itwould cost.
And that was such a learningfor us because we were all new
except for a couple that wasinviting us.
So I was like, wow, I'm thinking, oh yeah, we can just do this,
take this wall down, do that.
(29:15):
I didn't know anything aboutgetting permits and all that
kind of rehab process.
Just be open to learning fromall different, including that
little reel, but don't let thatbe your only source of
information.
Speaker 2 (29:28):
Which I think that's good.
I think I'm glad you came outtoday and, like I said, I like
your honesty, you know yourtransparent.
You're like look, I'm going totell them how you told me.
I'm going to tell them like itis now.
You put me on there because itain't pretty.
You know you do well with it,but I think that's what and
that's what we need to hear.
You know that it is going totake some work.
It is going to take youinvolved with some other people
(29:49):
and, like I tell people, youkind of have to pay somebody to
work with you If you can't justtake it and do it from.
You know the days of doingstuff from the hill.
You know we used to startbusinesses from the hill.
Speaker 3 (29:59):
You know what I mean, not the hill.
Speaker 2 (30:01):
The days, but the days of actually doing business
from the hill.
You can't do that no longer.
The mistakes is going to be somuch money and time, so you
really have to have that.
I say professional help.
Speaker 1 (30:12):
And I mean.
Speaker 3 (30:13):
I consider your message.
Speaker 2 (30:14):
You've done it.
That's why I said they gotpeople to come to me.
So my uncle said I said so howmany real estate investments do
y'all have?
Oh, he just got his house.
Speaker 3 (30:22):
Right, right, and the way things are done today are
different than how you know.
Like, I know plenty of guysthat own probably 20, 30
different rental properties.
But those houses, half of them,they inherited Another couple
they was able to buy for $10,000back in 1975.
You know like, so the financingpiece of it was not even
something that they had to dealwith.
(30:42):
Right, it has changed, I tellpeople we tell them from week to
week.
Speaker 2 (30:45):
I tell people stuff changed.
Speaker 3 (30:47):
Yeah.
Speaker 2 (30:47):
I say now, I'm going to tell you this now, but I tell
you this it might be somethingnext week, and I'm just just
because of our economy andwhat's going on and as real
estate investors, like you and Iwas talking about, you really
have to get into knowing what'shappening.
When you start getting intothat real estate, it takes some
time to research, but the goodthing is having a mentor like
yourself where you can, and then, of course, what you do with
(31:07):
them makes it easy for them whenthey come to me.
We prepare it, we can do theloan for them and get it in
there, based on whatever they'resituations and stuff.
So I think this was excellent.
Is it anything that you wouldlike to tell our listeners?
For the last thing, for the day, Think big.
Speaker 3 (31:21):
Think big.
Don't limit yourself your goalsbased on what you see right in
front of you now, because wetook one house and eight years
later we had eight rentalproperties and a bunch of other
benefits from being real estateowners.
Be structured.
You get a system in place thatyou can rely upon, because we
(31:45):
don't fall to our emotion.
We fall because our systems arenot in place If you don't have
a system for how you're going tohandle things.
And in the third piece is theteam.
Build a team around you.
Get an insurance expert, getyour contracting expert, get
your banking funding expert, getyour mentor, like build your
(32:05):
team so that you're not the onlyone that has information when
you're only talking to yourselfor other people that are the
smartest when you're notlearning, you're not growing,
and so I really want toencourage people out there Think
really big and you can turnthis into a huge legacy for your
(32:25):
family, but don't get caught upin it.
Well, all I got here now is justget that first one going, and
I'm telling you it starts steamrolling.
You get tremendous benefits.
And so those will be my littlethree takeaways.
Speaker 2 (32:37):
Takeaway from what that has been excellent Again,
thank you, thank you.
Speaker 3 (32:40):
I appreciate you having me here today.
Speaker 2 (32:41):
I appreciate you for being here and I would like if
you would like this informationabout funding and would like to
be notified of our newestpodcast drops, then please
subscribe to TDJ Equally FundingInsiders on your favorite
podcast platform and you cansubscribe to our YouTube channel
, tdj Equally Funding Strategies.
Until next time, thank you andtake care.
Speaker 1 (33:03):
We hope you enjoyed this episode of TDJ Equity
Funding Insiders podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet, forward slash
podcast or email us at podcastat tdjequityfundinginsidersnet.
Until next time, take care.
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
Speaker 2 (00:47):
Welcome back to TDJ Equity Funding Insiders, the
podcast that brings you theinside scoop of funding for your
business and real estateinvestments.
I'm your host, JacquelineJackson, the long guru
extraordinaire, here to serve asteaming plate of financial
wisdom with a side of reality.
Today we have a guest, I guess.
(01:08):
Host is Victor Johnson, who isnot only a real estate investor,
but he's also a mentor.
You know the kind of person whocan turn a dilapidated property
into a money-making masterpiece, and he teaches others how to
do the same.
So buckle up, insiders, becausewe're about to dive deep into a
world of real estate investingwith an emphasis of funding.
(01:28):
Welcome, welcome, welcome.
Speaker 3 (01:31):
Thank you, Jackie.
A pleasure to be here today.
I really appreciate the invite.
Speaker 2 (01:34):
Great and we're glad to have you.
We're looking forward to youbecause, like I said, our team
has already been researching alot of stuff that's going on
with the real estate.
As loan brokers and some of youguys, as you know, we deal with
people with real estateinvesting, but what we have on
this show is to actually letpeople know what is the insides
of doing it.
You've been doing it.
So what I want to start offwith if you could tell everybody
(01:55):
a little bit about yourself andabout your real estate journey.
Speaker 3 (01:58):
Absolutely so, victor Johnson.
I'm an author, I'm a speaker,but I'm also a real estate
investor.
My wife and I have a companycalled 555 Equity LLC.
That's where we do all of ourinvesting in real estate.
We have started buying rentalproperties single family rental
properties since 2015,.
All over the country SanAntonio, carrollton, texas,
(02:19):
kansas City, atlanta and we are.
Our most recent investment isin Punta Cana, dominican
Republic.
We just bought that one, sowe'll talk a little bit more
about those.
But through my journey, I had toclean up my credit.
I had to get better jobs, I hadto figure out how to get myself
together mentally, and we wereable to just go from one
property to the next and be veryunique in some of the ways that
(02:40):
we acquired the funding forthose.
Of course, we had our owncapital to get going, but
sometimes you don't want to putall your money into a deal to
make money.
But that's kind of what I'mdoing.
I work for another financialinstitution here in the Dallas
area now, so I'm helping a lotof people that look like me to
start investing in real estate,whether it's first time, home
buyers, luxury buyers,developers or investors.
(03:03):
But real estate is the key towealth and it's the key to
legacy building, and so that isreally my overarching message,
whether I'm doing it through mybook, my talks, interviews like
this, or through my work.
Speaker 2 (03:14):
Okay, great, great, so wonderful.
You are a great candidate to beon with us Because one, like I
said, we're being real, we do isunfiltered, is what we are.
So we're not all about thenames just because we want the
professionals or the industryexperts to come in and just give
us the truth of what's reallybehind, like, I guess, the ugly
part.
You know because everybodythink about the money, but I
(03:34):
know you didn't get through theugly part.
Okay so what they said on theugly part, we're going to start
off with our questions, becausethese are questions that we
actually get from my listenersand they kind of send them into
us and so we try to format itwhere you could ask those
questions.
So some of the questions theyhave basically is for one your
experience.
You've already stated to whatthat is, but in the process of
(03:55):
doing your real estate investing, let's talk on that.
What are some of the bestinvesting deals that you have
seen that you think are prettygood deals right now?
Speaker 3 (04:03):
So for me, the more doors that it has.
So if it's a duplex, triplex,fourplex, those are great deals
because you have one loan forthat building but you got
multiple streams of incomecoming in from each door.
So if you're in a positionwhere you can buy a duplex, a
threeplex, fourplex or even gocommercial into five and up,
(04:25):
that is definitely the bestsituation right now.
Obviously, in most majormetropolitan there's going to be
a shortage of inventory.
So being comfortable withlooking outside of your key
market maybe 50, 75 milesoutside of a major city
definitely smart right now.
There are lots of people who in2020, 2021, that paid too much
(04:50):
for properties and they're justduring COVID, yeah, and because
we saw accelerated appreciationrates on properties.
people were like, oh well, I'llpay $50,000 over the asking
price and now they're sittingback just tripping because they
spent too much for a propertyand they can't refinance it
because the rates are threetimes higher than they were at
(05:12):
that time.
So sometimes you can find gooddeals through those motivated
sellers, people that are justeager to get out of the deal and
just move on to something else,and so as an investor you got
to be keen to looking for thoseopportunities that come up.
You might have to do a littlebit more marketing to find those
people, but those are gooddeals and definitely the more
(05:33):
doors that you can buy in onetransaction, the more profitable
it should be.
Speaker 2 (05:38):
You know, some of you do the other based on another
one, absolutely, absolutely,which, which I agree, because as
well we deal with investorsgetting them the money, and also
we're investors are me and myhusband as well.
So, but I will talk more fromthe money side.
What I try to tell investorswhether you knew a season when
you say, go look for those dealsat the same time you need to
(05:59):
look at the economy.
What is happening?
Yes, everything is not meantfor you to bite at the same time
and even though other peoplemay not be biting, it might be
your time to bite.
So I think, along with whatyou're saying, is that, yes, you
do need to look at those and Ithink those are really the
better deals, because personally, I prefer those over single
family, that one house, becauseI look at it like this if that
(06:21):
tenant doesn't pay me, there yougo.
But if I got, four people andone don't pay me I still got it.
So we have to kind of think ofit in another way.
I think that we've seen itworks If you are a person that
can stay in one of the units andrun out the other that's a
great way to get you in, youknow as well.
So I think that's a good way.
(06:41):
I just told a couple that I wasactually looking at buying a
house and I think that's great.
But I said it's just you andyour little girl.
Why don't you all just get aduplex of four players and rent
the rest out?
She was like yeah.
Wow.
And that's what she's doing.
Speaker 3 (06:54):
So even with traditional lending you can
still get FHA loans 3 and 1 halfpercent down because you're
doing that way, right, right,but you're buying on our own.
Speaker 1 (07:04):
If you own our occupying Right, you know.
Speaker 3 (07:06):
So you got that.
If you're a veteran out there,that person can take advantage
of less money at the closingtable.
Zero, you know, zero downpayment, and they just pay the
closing costs.
They're tax free.
And put your tax free on afourplex instead of a single
house.
So that's what I've beentelling people.
It's the same time and it'sgiving tons more income.
(07:26):
It's covering you all yourpayments.
You only have to let the peopleknow that you're the owner of
the house.
You know what I mean.
Speaker 2 (07:31):
You can talk about it .
Speaker 3 (07:32):
Yeah, that's not.
Speaker 2 (07:33):
Yeah.
Speaker 3 (07:34):
Right, exactly, you know that's the way to go.
Speaker 2 (07:36):
I would say and that's what I'm saying and
that's why I wanted to bring youin, because a lot of stuff that
people are seeing now is what'son the internet, what YouTube
somebody's selling you to bethis, somebody's selling you to
that.
But what I realized that youwould, like my listener would
like to know can somebody justtell us what's going on so we
can have an ideal of what we'redealing with?
And that's why I said, like,definitely you come in and you
can kind of help us with that.
(07:57):
So now we're talking about themwith the property and what type
of property you're going to get.
So let's talk about for, as,when it comes to considering
funding, what should they have?
What strategy do they do whenit comes to getting funding for
real estate?
What do you think?
Speaker 3 (08:11):
So first thing is, don't approach it from.
How can I get in this housewith as little little down, as
little credit?
Speaker 2 (08:20):
as possible.
No, this is an investment.
Speaker 3 (08:23):
So you're already going to miss out on some of the
advantages of you living inthat house.
Like you got to bring more tothe table Usually 20, 25% equity
or money that you have to bringas a down payment because this
is a commercial property.
Now You're an investor.
So having enough bread to bringto the table and they typically
want to see reserves, which isthe amount of what that payment
(08:47):
is going to be times about sixmonths.
You need to have that available.
You still got to do propertymanagement.
You still may have renovationsthat you want to do.
So have enough money First ofall.
Like, don't try to just youknow there's people out there
online that you see or you canget a house with no money down.
Speaker 2 (09:04):
Those days are gone, man for people to say that and
people to believe that they likeone.
Look for something I can dowith no down payment.
Right, you can live out thereon that street right now.
Honestly, you're not ready.
Speaker 3 (09:14):
You know what I mean.
Like mentally, there's a wholetransition that has to be done
and then there's a wholetransition that happens for you
to get that money together toeven buy.
So there's that the creditpiece is important.
There are ways to do it withoutyour credit being considered,
but at some point you'reprobably going to need to
refinance out of whatever sourceyou use to purchase that
(09:36):
property in the beginning, andthat first source is usually
going to be a higher interestrate.
So at some point you'll want torefinance out into a lower
interest rate.
So your credit will come intoplay at that time.
And I would say, you know, 680is a good number.
You could get in at 640 and 620, but we're talking about what
(09:57):
is the best strategies, and Isay 680 and up is going to give
you the best opportunity to getgood, fair funding, less hangups
down the line, and so thosehaving enough capital and having
a decent credit score in thebeginning is very helpful.
Speaker 2 (10:12):
Right, and that's what some people say.
What we say is loan brokers.
As loan brokers, we've donepeople as low as 500.
For sure.
And we can, because that's 500along with the reserves.
So we're not now you know, I'mjust saying we have people as
low as 500.
We deal with majority of them,we don't.
But I've had some come throughlike that.
And it turned out to be prettygood.
(10:32):
And I'm just saying becausepeople do what they're aware is
not necessarily always based onthe credit.
Speaker 3 (10:37):
Right.
Speaker 2 (10:37):
It's based on the integrity of the property that
you have.
So if you have that property,when we say integrity we're
talking about the numbersworking.
Speaker 3 (10:44):
For sure.
Speaker 2 (10:45):
And I'm talking, I'm the lender that gives you the
money.
So we're going to look at thatproperty.
Now let me tell you what acredit does come in on our side.
Say, for instance, you couldeither come in and put in 20%
because you have a credit scoreof 760, or you can come in and
put 30% because you have acredit score of 640.
Right, so that's when that kindof play up art, right.
And also, as people get intothis, we tell them, having your
(11:07):
history, your resume, usuallywant to know within the last
three years, how many rentalproperties have you fixed Right
or have you sold Absolutely.
So you want to get one or twoproperties under you and
sometimes people have to startwith the credit where you are,
that's true.
So it's where you are is whereyou actually will go and do the
research and see what's best foryou.
That's what we try to explainpeople, why we have this show,
(11:29):
cause a lot of people don't knowthey have options.
Speaker 3 (11:30):
No, that's true, and I'm glad you said that, because
I am here to encourage peopleget the house any way possible
in the beginning, right?
Because even if you got startedthe 500, even if you got to,
you know, scrape up some fundsto borrow it.
Whatever is, you know yoursituation but at some point you
do want to take care of those.
(11:51):
That credit piece, because theinsurance is going to be
different for you.
You're going to pay more oninsurance, you may have
different uh, especially ifyou're going in in the strategy
we talked about where your owneroccupant.
Then now you're talking aboutmortgage insurance rates and
stuff like.
So the credit plays so muchmore than just the actual
financing of the money thatyou're looking for.
(12:11):
But those will be pieces that.
So my first rental property webought in San Antonio.
I was living in Austin.
We bought it in San Antonio,the house was 75,000.
We were going to put another15,000 into it.
So we'd be about 90 grand intothat deal and the plan was I use
hard money to get that dealdone because I was going to need
(12:31):
to rehab going.
I only had about $10,000 incash and we put that down to
close on the property andtowards our initial draw for the
rehab and then the plan waswithin 30 days, all that'll be
done.
I have a tenant in place and gorefinance that house.
Well, my credit score was like648.
(12:51):
It was I needed to be at like650 or something, and so I had
to wait to get the refinancedone.
So what that meant was mymonthly payment to my hard money
lender was about $1,300 a month.
Well, that's what I wascollecting the rent.
So I got zero cash flow out thegate.
Six months in, when my scorewas better and had my income
(13:12):
solid, I refinanced.
My cash flow went to like $400a month.
So from a numbers perspective,they did make a difference to my
credit to be better, and thatbecause I did the buying whole
strategy, you know, buying itand then refinancing it down a
line.
Speaker 2 (13:27):
And so what I want to say too and this thing is like
you and I we go into isunfiltered as real, so we can
have this discussion and notnecessarily we're going to agree
on everything For sure.
What I'm going to say from theloanbroker, since we deal with
giving money, we have it where,like, what I have to explain to
people is that it's a commercialdeal, but, like you had
mentioned that, oh, that creditgoing to affect the commercial
insurance, not necessarily on acommercial deal.
(13:49):
Okay, Okay.
Understand.
Let's say what's business,because a business commercial is
.
People don't understand if youget a residential property
that's non owner occupied, noton.
Speaker 1 (13:59):
You're not going to live there.
Speaker 2 (14:01):
That is a business all day.
I got a call from one of myclients that I've done some
stuff with before for hisbusiness lending, but he wanted
to refinance the house that wasout of the.
That was basically in NorthCarolina, okay, well the thing
is he called me.
He said I call my mortgagecompany.
You know it was his mother'shouse, okay, and I called him,
say we wanted to refinance.
I can cash out, you know, giveme the horizon.
(14:21):
He said they told me they needa utility bill.
He said what kind of stuff isthat?
I said well, they do need autility bill because you're
refinancing that home as if youlive there, but you have a
rental there, because you justtold them to ask you where you
live.
And you said I live in Kentucky.
So they're like well, it's arental property.
He kept saying no, it's not, butit is.
(14:41):
So I think even this is even myfirst time forced lender me,
loan me landlords Cause you knowsome people are forced to be oh
, yeah, yeah, yeah.
So in this case he was becausehe brought his mother to him and
so he had to put somebody in it.
So you have to understand onceit's a non owner occupied
resident, you have someone inthere.
That's no longer residentialRight, that is commercial.
(15:02):
So you have to.
You should change yourinsurance to reflect that.
Okay, make sure your mortgagecompany is right, it's
understanding what you're doing,because the last thing you want
to do we've seen it you want tofile a claim as a residential,
and it was commercial.
You're going to have a problem,yeah.
And that's what people don'trealize, like why are they doing
it?
I say because you can't.
So we want to make sure peopleunderstand non owner occupied.
(15:25):
If you do not live thereanywhere, it is considered
commercial all the way?
Speaker 3 (15:30):
Absolutely no.
I'm glad we clarified that.
Yeah, we clarify that.
Speaker 2 (15:34):
So I think that is something good to know.
When you say and I'm with thefunding, so we do, so
understanding.
Let's look at the real estateinvestment opportunities that
you've seen, like you said, youthink was really good is that
they do the doors, and I likethat.
I never thought that if the moredoors you can buy, the more you
can Absolutely.
Well, let me ask you this butbut compared to the single
family?
You said that I would rather gohere.
We know what sounds good to gowith this more money and
(15:57):
everything.
In that case, what is thedownside of me going there?
Speaker 3 (16:01):
The single family.
Speaker 2 (16:02):
Single yes, what's the downside?
Speaker 3 (16:03):
you see, you've seen the downside of having a single
family versus no having themultiple doors.
Oh, oh for sure.
Well, you got more propertiesto deal with, right.
You got more tenants that yougot to manage, right, More
people, individuals, to dealwith.
In that situation you do haveto have probably a little bit
more money than if you werebuying just one single family
versus a quadruplex, right?
(16:25):
So there's the money factor.
There are renovations thatcould come up, that you know
where.
You got more toilets beingflushed, and you know I mean
pipes, you know I mean hey,something happens.
You have, especially in afourplex, more kids probably in
that situation.
So then from the insuranceperspective it could be a little
(16:47):
more dangerous, you know, justbecause you have it's more
families in there.
Speaker 2 (16:51):
You got to put more.
You know I have to be put morecoverage, Need more coverage,
Absolutely.
Speaker 3 (16:56):
So those are the downsides Um.
Speaker 2 (17:00):
I don't think it's downsides as more as we need to
say the other side.
The other side, that is truebecause it's still making money
for yeah.
Speaker 3 (17:06):
And, uh, inventory is low on single families.
There's definitely low onfinding fourplexes, quadruplexes
, triplexes, right, so they'reharder to find those.
So when you do find one, youwant to be ready, go ahead and
get your offer in how your teambuilt up so you can, you know,
get an offer submitted asquickly as possible.
So those would be the othersides to the multi families that
(17:28):
I would say.
Speaker 2 (17:29):
And I'm just saying cause people are looking at
trying to do so much differentthings.
But we talked about how realestate investors we're talking
about you know some things thatthey need to be aware of, and
EDC.
That's why it's important thatthey have a mentor, and I know
that's what you do For sure.
So I want you to let ourlisteners know.
Having a mentor now notnecessarily we would love for
you to come and be with Victor,but long as you get a mentor, I
(17:52):
know we've talked before he'ssaying how was they?
get somebody, jackie.
So tell me in a mentor, whatshould they look for for a real
estate investor?
Speaker 3 (17:59):
Look at me.
Look at me.
Let me tell you something.
Do not just find a mentor offof Instagram, tiktok, youtube.
That's good information.
You need to get somebody thatcan, that's done it and is doing
it, to actually consult andmentor you right, because this
market is, it's it's worldspinning, like you know.
(18:21):
It's like riding a rollercoaster and what somebody
recorded in 2020 or 2021 andposted out there and chopped it
up and you came across thatfootage.
It may not be the best, it'snot For you, exactly Right In
2023 going forward.
So find somebody who will bebrutally honest with you about
(18:42):
what's going on, what your needsare, and really they are
willing to look at and analyzethose numbers with the people,
because you this is taking allof the emotions out of this is
when you're investing.
This should not be.
I had to mess with my wife allthe time that first little
rental property.
She's like oh, we should dothis.
This is a rental property.
This is not going to be thehouse that we want to be hosting
(19:04):
parties and parties and allthat no.
Speaker 1 (19:06):
I'm with her.
Speaker 3 (19:07):
This is one of them.
Things where this is, it needsto be clean and functional.
Like you know, that's keep itbasic, but we help run people
through the exact numbers whenI'm doing mentoring.
But find anybody who's activelydoing real estate investing
that can walk you through thetype of strategy that you have,
because the strategy is a bigpart.
(19:27):
You might find somebody who'sgood at wholesaling, but they
don't really do buy and hold.
They're not truly going throughthe full process of closing and
getting marketing for tenantsand managing tenants and putting
systems in place for tenants tobe managed Right.
So it's always good to havementors to walk you through it.
(19:48):
It's not to say that you won'thave mistakes and you won't have
challenges, but it reduces thatand you still got somebody
there that you could talkthrough.
Hey look, this is the type ofscenario I came across.
What's the best next step?
You know sometimes that's allwe need to know is the next best
step, instead of the grandsolution for the whole thing.
(20:09):
It can be overwhelming.
So having mentors is criticalin the real estate investing
space.
Speaker 2 (20:14):
So when you first did yours, did you have a mentor?
I did, I did.
Speaker 3 (20:18):
So I paid for a program out of San Antonio.
It was a eight hours a day,saturday, sunday type of course.
And then they of course offeredyou hey, we can do one on ones,
you know we can get yousomebody.
I had $10,000.
I didn't have money to be put intowards a mentor and my down
payment and cleaning up creditRight, so I had to make a
(20:38):
business decision at that time,and my business decision was I'm
going to take these books andthese notes and all the hundred
questions that me and my wifeasked over these two days, and
we're going to make it happen,and we're just going to do what
they said is to do.
Next.
Let's get an agent.
Okay, I was fortunate that theagent was also an investor him
and his wife.
Speaker 2 (20:58):
And then let me say that, not to break you up, when
you and we talk about realestate investors, when you get
an agent, get someone that has aproven track record for real
estate investors.
Speaker 3 (21:09):
Yeah, they may say it .
Speaker 2 (21:10):
But how you know is based on the conversation.
Oh, he won't take it for twominutes.
Speaker 3 (21:14):
Yeah, if you don't mind, let's talk a little bit
with that real estate agent.
Speaker 2 (21:19):
What they need to look for, because a lot of
people have a misconception,absolutely.
Speaker 3 (21:22):
So in a typical agent they're looking for what's the
best school districts, what'sthe best you know schematics of
the house and they're stillrunning numbers for you.
With the investor minded agentthey're helping me find areas
that are developing so I'm ableto still buy it at a kind of
somewhat wholesale price.
(21:43):
And I know that within a two,three year window that that
property is going to be valuedat a much higher price, right,
I'm able to talk to them aboutthe different financing
scenarios that I might need.
You know they'll have resourcesfor contractors, for title
companies that might need to dospecial things for me as a real
estate investor.
(22:04):
So having that investor mindedagent is critical because they
also have pocket listings.
They have listings that otheragents that are thinking about
listing a property but they'lltell their real estate friends
First.
Hey, look, you know, I know yougot some investors on your team
.
Right, you got any cash buyers,because real estate agents love
(22:25):
cash buyers, right.
So that investor minded agentwill have pocket listings where
they can say, look, this was noteven on the market, nobody's
bidding on this house.
It came across me through areal realtor friend of mine.
You might want to look at itand they can go through those
numbers with me as an investorand not just as a retail buyer,
right, right.
Speaker 2 (22:45):
It's really critical.
It's a good point because, likeI said, all the year they come
to us.
They need the money, but youknow it's about having that
resource.
Therefore, you're having thoseconnections or that team.
That's like a team.
Speaker 3 (22:56):
Right, that's right.
You got a real team.
Speaker 2 (22:57):
Yes, your team that you need to have, and that's
where we know mentorship iswhere someone can direct you how
to develop your own team and,like you said, if they're
missing certain parts that youneed, then don't make them your
mentors, just don't.
And you write on that.
Speaker 3 (23:10):
And let me say this part too Jackie, Be okay with
saying no to people Likeeverybody wants to help you.
Everybody got advice.
All the advice ain't goodadvice.
Even information you hear mightnot fit to your situation Right
.
Speaker 2 (23:25):
But doesn't mean it's wrong.
It doesn't mean it's wrong.
It may not fit you.
Speaker 3 (23:29):
But so many times we're afraid to hurt people's
feelings.
This is business.
You're about to invest whatevercash you got in hopes of
growing that money and you don'twant to, like, put your
situation in jeopardy or at riskbecause you don't want to hurt
somebody's feelings.
Man, they're gonna be alright.
Speaker 2 (23:46):
Yeah, they're gonna be alright, and I said trust me
you sound like a man that beenthrough it.
Speaker 3 (23:50):
I'm saying it because I've seen it, even with clients
that I've mentored.
It's like well, you know, thisis my cousin and I just really
want to make sure that that'sworse, you know nah man come on.
This is your financial future,that you're talking about, your
kids future.
Be smart about how you moving.
Speaker 2 (24:03):
Right and how you do it.
And, like I said, we're justtalking about all this together,
worse, together, because whenyou go to, like, say, for
lending because this is afunding podcast when you deal
and come with us, at our lendersand everything, they want you
to be successful.
So what you're saying is thethings they need to look at so
they can be successful, it's notjust about getting the money,
but it's like you said, it's astrategy.
So they have to have a processto think this thing out.
(24:25):
Now, something I'm gonna add toyours is really good.
I tell people when I have youknow they start now and they
like well, I'm gonna give mybrother, I'm gonna give my
cousin.
We're gonna try to do thistogether.
My thing is this don't get mewrong we love family and friends
.
Speaker 3 (24:36):
Right.
Speaker 2 (24:36):
But you really need.
You correct me if I wrong.
You need to evaluate if they'reemotional.
Are you emotional and you forto bring them together?
And then you find out once youget together.
Oh my God.
Speaker 3 (24:47):
Yeah.
So yeah, I can speak on that.
Speaker 2 (24:49):
Yeah, I get it in your face.
Speaker 3 (24:50):
So with the property we just bought in Punta Cana,
dominican Republic is a condo,so we own a unit in the condo,
okay, and we couldn't mortgagethat property.
We had to have cash.
This is a.
We own that outright.
We had to bring a certainamount of cash everybody to the
table.
So I'm working with my sistersand I love my sister.
It ain't.
Nobody can mess with my sisters.
(25:12):
But when we start talking realestate, okay, we need to get our
operating agreement together.
Who's going to do what?
I need everybody.
Take this dis assessment becauseI need to know how you move
when it comes to analytics, howyou move, are you more
interpersonal?
Are you people person?
Are you more structured anddisciplined?
Like I need to reallyunderstand how you move.
I'm your brother, I know howyou move, but as a business
(25:34):
partner, I don't know how youmove like that.
Right, and have thoseconversations, those ugly,
uncomfortable conversations, upfront.
Those are hard.
Get them in writing, get itsigned and quit downloading all
these agreements off of Googleand go get you an attorney or a
rocket lawyer or something outthere.
That's a legal document foryour state.
So I just want to say that.
(25:55):
Right, because you say hey, Isaw it in your face.
Yeah, yeah, yeah.
Speaker 2 (25:59):
And that's basically what it is, and that's why we're
here.
We're trying to help people,not to actually go down the road
.
So it's not the best road forthem, because a lot of time, as
you know, people know but theyjust don't tell us.
And then they didn't watch usact like what a fish out of
water, because you know and theycan tell you what you can do or
where to get the water.
So that's what I like about youand your mentorship program is
because you've realized I wentthrough all this and I've been
(26:21):
going through this.
This is.
I just wanted this and eventhough you had, you see, so much
problems, that's why you try todo it to help people.
Because it is a struggle andsometimes, most time, we don't
get the right information whenit comes to real estate.
I know because they come intoour office and they believe well
, I want to have it, they wantto have us to do the real estate
(26:42):
investment as if they arepurchasing a home.
I said doesn't work that way,right, you know, if they offer
you prepilities, that's whatthat is.
On commercial you know whereyou know the FHA and all those
loans don't allow certain stuffyou know.
For that I say so, it's not thesame and they really believe in
they are.
They know how this supposed towork.
It's not going to work.
You know.
We're going to tell you whatyou got to do step one, two,
(27:03):
three, four to get this money.
And there's no deviating in.
You can try to get around it.
Speaker 3 (27:07):
Right, right, it is what it is, yeah.
Speaker 2 (27:09):
Yeah, they try to get around and say, hey, I can do
this a better where I have itwant to go.
So I think that's good.
You know, like I said, we'rebeing real because we've been
there and that's what you'reshowing them.
Yes, you want them.
I also want everybody to beable to get in touch with you if
they want to, to contact you.
So definitely say your websiteand we're going to put it on our
video as well, so let everybodyknow what your website is.
Speaker 3 (27:28):
So you can visit my website at be the victorus.
B E, t, h, ev I, c T O R.
Dot us, not dot com.
Dot us be the victor.
You'll see my programs outthere, my coaching link is on
there and all that that isavailable there.
What I want to say also is,well, I love people connect to
(27:51):
me on LinkedIn, victor V Johnson, on LinkedIn.
That's my favorite socialplatform.
But back to kind of thatmentoring thing.
Don't learn how to do thisthrough 30 second reels, like
don't learn how to do this bycompilations, you mean, you mean
everything at 30 seconds.
Speaker 2 (28:09):
Man like people be sending me stuff.
Speaker 3 (28:12):
Oh look, this.
All I got to do right here islike man Land, listen.
So get you some idea.
And this is a great show.
I love this because you'regiving them real information.
We're not cookie cuttinganything Like.
Every situation is unique.
You can start out with astrategy, but once you get in it
, that situation gonna becompletely different than maybe
(28:33):
how mine was or how yours was.
So be open to that and that'sthe key is to continue learning
and, like even the realtor thatI said, they were investors so
they were able to mentor me andmy wife.
But our information learningdidn't stop there.
We were going to there wasanother group of couples that
were doing these buying holds,and so what they were doing is
(28:54):
they were buying ugly house andthey said, hey, come on out
Sunday at two o'clock.
We want everybody's ideas abouthow we should restructure this
house and what you think itwould cost.
And that was such a learningfor us because we were all new
except for a couple that wasinviting us.
So I was like, wow, I'm thinking, oh yeah, we can just do this,
take this wall down, do that.
(29:15):
I didn't know anything aboutgetting permits and all that
kind of rehab process.
Just be open to learning fromall different, including that
little reel, but don't let thatbe your only source of
information.
Speaker 2 (29:28):
Which I think that's good.
I think I'm glad you came outtoday and, like I said, I like
your honesty, you know yourtransparent.
You're like look, I'm going totell them how you told me.
I'm going to tell them like itis now.
You put me on there because itain't pretty.
You know you do well with it,but I think that's what and
that's what we need to hear.
You know that it is going totake some work.
It is going to take youinvolved with some other people
(29:49):
and, like I tell people, youkind of have to pay somebody to
work with you If you can't justtake it and do it from.
You know the days of doingstuff from the hill.
You know we used to startbusinesses from the hill.
Speaker 3 (29:59):
You know what I mean, not the hill.
Speaker 2 (30:01):
The days, but the days of actually doing business
from the hill.
You can't do that no longer.
The mistakes is going to be somuch money and time, so you
really have to have that.
I say professional help.
Speaker 1 (30:12):
And I mean.
Speaker 3 (30:13):
I consider your message.
Speaker 2 (30:14):
You've done it.
That's why I said they gotpeople to come to me.
So my uncle said I said so howmany real estate investments do
y'all have?
Oh, he just got his house.
Speaker 3 (30:22):
Right, right, and the way things are done today are
different than how you know.
Like, I know plenty of guysthat own probably 20, 30
different rental properties.
But those houses, half of them,they inherited Another couple
they was able to buy for $10,000back in 1975.
You know like, so the financingpiece of it was not even
something that they had to dealwith.
(30:42):
Right, it has changed, I tellpeople we tell them from week to
week.
Speaker 2 (30:45):
I tell people stuff changed.
Speaker 3 (30:47):
Yeah.
Speaker 2 (30:47):
I say now, I'm going to tell you this now, but I tell
you this it might be somethingnext week, and I'm just just
because of our economy andwhat's going on and as real
estate investors, like you and Iwas talking about, you really
have to get into knowing what'shappening.
When you start getting intothat real estate, it takes some
time to research, but the goodthing is having a mentor like
yourself where you can, and then, of course, what you do with
(31:07):
them makes it easy for them whenthey come to me.
We prepare it, we can do theloan for them and get it in
there, based on whatever they'resituations and stuff.
So I think this was excellent.
Is it anything that you wouldlike to tell our listeners?
For the last thing, for the day, Think big.
Speaker 3 (31:21):
Think big.
Don't limit yourself your goalsbased on what you see right in
front of you now, because wetook one house and eight years
later we had eight rentalproperties and a bunch of other
benefits from being real estateowners.
Be structured.
You get a system in place thatyou can rely upon, because we
(31:45):
don't fall to our emotion.
We fall because our systems arenot in place If you don't have
a system for how you're going tohandle things.
And in the third piece is theteam.
Build a team around you.
Get an insurance expert, getyour contracting expert, get
your banking funding expert, getyour mentor, like build your
(32:05):
team so that you're not the onlyone that has information when
you're only talking to yourselfor other people that are the
smartest when you're notlearning, you're not growing,
and so I really want toencourage people out there Think
really big and you can turnthis into a huge legacy for your
(32:25):
family, but don't get caught upin it.
Well, all I got here now is justget that first one going, and
I'm telling you it starts steamrolling.
You get tremendous benefits.
And so those will be my littlethree takeaways.
Speaker 2 (32:37):
Takeaway from what that has been excellent Again,
thank you, thank you.
Speaker 3 (32:40):
I appreciate you having me here today.
Speaker 2 (32:41):
I appreciate you for being here and I would like if
you would like this informationabout funding and would like to
be notified of our newestpodcast drops, then please
subscribe to TDJ Equally FundingInsiders on your favorite
podcast platform and you cansubscribe to our YouTube channel
, tdj Equally Funding Strategies.
Until next time, thank you andtake care.
Speaker 1 (33:03):
We hope you enjoyed this episode of TDJ Equity
Funding Insiders podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet, forward slash
podcast or email us at podcastat tdjequityfundinginsidersnet.
Until next time, take care.
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