October 23, 2020 • 39 mins
In this Study Hall legendary real estate investor Fernando Hernandez aka Lord of The Slums breaks down his investment strategy which consist of obtaining properties without bank financing. Link to Full Episode on YouTube: https://youtu.be/ZHiiyZ_7Zco EYL University: https://www.eyluniversity.com EYL University 40% off Annual Tuition Code: EYL Guest IG: @lordoftheslums --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/earnyourleisure/support
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
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Speaker 3 (01:48):
Let's do it. My graduates from my school being force
backdrop drop like drop bag, drop drop. All right, so
(02:14):
we're going to go into the nitty gritty.
Speaker 4 (02:16):
But before we start, you have to acknowledge this because
we don't want this to go with people said, so, okay,
twenty twelve, which was seven years ago, so.
Speaker 3 (02:27):
You borrowed thirty thousand, yes, right to your.
Speaker 4 (02:31):
Second investment property and then from there you kind.
Speaker 3 (02:36):
Of just learned the ropes and you're at where you're
at now. So in the words of Kendrick Gloogaugh, he
took thirty thousand in freak to twenty five million seven years.
Speaker 5 (02:51):
So yeah, it's I'll say twenty sixteen though, that's that's
kind of like what the magic happened though, Okay, it's
kind of like that's when like I was consistently able
to purchase a property, fix it up, rents it out,
and then once it's already rents it go to a
lender to catch it out.
Speaker 3 (03:08):
All right? So can we all right? Son? We so
can we get it? To look at the chart though,
you noticed how it's kind of like I was like, oh,
it's like, you know, get a three, it's like one one, yeah, but.
Speaker 6 (03:17):
It's like twenty sixteen. That's kind of like when it
really like made that a h. So match is twenty fifteen.
I'm twenty fifteen, So can we do? That's when I,
you know, the first cashown. Can we go to twenty fifteen?
When when you start to really take off?
Speaker 4 (03:28):
And kind of just because that's like your blueprint right
as far as yeah, can you just break that.
Speaker 3 (03:33):
Down as far as the flips, how you look at it?
All right? I can you just tell exactly like what
you do?
Speaker 6 (03:39):
So what I do is like when I look at
a house is like try not to look at a house.
Speaker 3 (03:43):
I try to look at numbers. So it's in the.
Speaker 6 (03:46):
Formula is basically if I keep try like of my
portfolio and I ask myself like, all right, is this
going to increase my network?
Speaker 3 (03:54):
And then the other question is is this going to
increase my cash flow?
Speaker 5 (03:57):
And if the answer is yes, and it's kind of
like all right, the thumbs up, you know, and I
could get this.
Speaker 6 (04:01):
But now there's the other question now is like how
fast and can I get my money back on this deal?
And then there's like if all three are yes, then
that's when I jump on the deal. Okay, yeah, this
is a deal for me. So it's like every property
that I see, I see with that intention is like
I think, like the most important thing you need to
know is how much can a house a praise for?
Speaker 3 (04:22):
And then it's like the key component here is.
Speaker 6 (04:24):
A praise for which took me a while to understand
because before I would look at a house and I
was just like such an honest guy, and I would
look at it, I would telling myself, like, you know
what that ask I could sell that for two fifty,
so it's worth two fifty. But going back now to
like the inner City, and it's kind of like why
I stuck to Patterson because I felt like I knew Patterson,
like the pomb with my hand and not sure if
(04:45):
it's like if it's you know, if it's the same
for every inner city.
Speaker 3 (04:48):
But let's lay Patterson, get you get a block. This
corner right here is.
Speaker 6 (04:53):
Like where all the hustlers are at, and it's a
lot of crime basically, right, But this corner right here
was just the same block, super quiet.
Speaker 3 (05:01):
It's cool. You could, you know, you could walk by.
Speaker 6 (05:02):
Nobody's gonna, you know, try to hustle you for you know,
to buy any any drugs or anything like that.
Speaker 3 (05:06):
Yeah, but now they're on the same exact block.
Speaker 6 (05:09):
So now you picture somebody coming from out of town,
like an appraisal or anyone, and now they see this
property over here. But now when they look at comparables,
they're looking at the whole neighborhood and go to look
for the meeting area. So it's like if this property record,
you know right here, basically let's say this one is
cells for two hundred, but you know, let's say this
(05:29):
one sells for for for two fifty. Let's just say, right,
but now if you're buying this one and you're buying
it through a short cell, it's gonna be a foreclosure.
More than likely they're gonna use this one here as
a comparable. So now this brings down the value of this,
but this one is worth more, and you know it's
worth more because you know the area better. So and
then going back to the other thing about knowing about
(05:50):
you know, appraisal one values, it's you know, that's kind
of where it's at because it's like you know that
this one's gonna suffer less and this one's gonna sell
for more. But when you put those two paper, depending
which way it goes, remember as I told you earl
Ago is like appraisal is not a science, is an art.
So depending on the artists, depending which way they want
to go, that value could come in at two hundred,
(06:11):
can come.
Speaker 3 (06:11):
In at two fifty.
Speaker 6 (06:12):
So I try to look for the house it's worth
two fifty that I know the value is going to
come in at two hundred.
Speaker 3 (06:16):
It's it's kind of like now off the bat.
Speaker 6 (06:17):
As soon as I buy the property, already know I
have fifty thousand inequity. The other part of it too,
which is why I always try to look for properties
that need renovation, because most people do not want to
deal with renovations.
Speaker 3 (06:29):
Most people want to just grab the keys, go inside
the house. And they're good to go. So when you
get a property and you're renovating, you adding value to it.
Speaker 6 (06:36):
So now let's just say this scenario, right, you ended
up picking this house for two hundred, but you know
it's ready off the bat, it's already worth two fifty.
But now you let's say you throw twenty five into it.
Now it's not two seventy five. Now it's three hundred.
So you got it more value to it.
Speaker 7 (06:52):
So when you're doing that right, when you're about to rentedy, right,
I'm assuming on your first property you didn't.
Speaker 3 (06:57):
Have a team or did you go in right?
Speaker 7 (07:00):
So what was the process of selecting a team of contractors,
like honest people out of right so that you don't
get ripped off? Or was it like you know what,
I'm gonna learn the craft and do it myself, or
what was the process in creating that.
Speaker 6 (07:14):
Well first properties, let's just say the second property that
I purchased, right, that one, I did not do a
gover renovation. I just went in through a couple, you know,
some line and the floorings, painting, the walls, patched up
a few holes.
Speaker 3 (07:25):
I think I did like one bathroom.
Speaker 6 (07:27):
Had I purchased the house today that probably would have
been a complete gut renovation.
Speaker 3 (07:31):
So you have to do you know, where you can
handle what you know.
Speaker 6 (07:36):
So when you start off, you know, advice everybody, just
start off, you know, with light renovations and kind of
like work your way up. The way it works is
basically you get yourself, you know, the one handy guy,
which once again, this is why it works out with you.
If you're able to buy in your neighborhood, you can
make a few phone calls ady, you know, like, oh yeah,
my cousin has a cousin who is pretty handy.
Speaker 3 (07:56):
He can help you out. So you start off with
the handy guy.
Speaker 6 (07:59):
But after a while, you know, when you start doing
more incense renovations, you know, they might refer you to
someone else. Or it's like, you know, just go to
own Deepot's like and you study, like home mebles worn
by most of my materials, and it's like and if
you go in there and you study, when you see
somebody walking out and all they have is just electrical
materials that you know, this guy very likely is an
electrician or at least knows how to do electrical work.
Speaker 3 (08:19):
Same thing with a plumber and so forth.
Speaker 6 (08:21):
So it's kind of like and you sort of build
up your team, but it's really a trial and never
unless you get some refrols you're gonna get. You know,
a lot of people act me a lot of times
it is like, have ever lost money in real estate?
And the answer is no, just because I've been able
to buy properties to have a lot of equity in them,
but that doesn't mean that it not lose money on
the deal. So it's like if I go in, I
get get a property I'm projecting and make let's say
(08:43):
fifty thousand, and I get this one contract and you know,
he messes up and I end up losing ten thousand
or time still make forty thousand.
Speaker 3 (08:49):
You know, but I didn't really didn't like lose money.
But you know it's still agree Yeah, yeah, it's still agreeing.
Speaker 6 (08:54):
You know, contractors is triggering with contractors is like it's
like that's why I call them contractors, because you're not
careful they will kind of So what I do now
to minimize the chances of somebody ripping me off is
basically I pay for all the materials, which.
Speaker 3 (09:09):
Is pretty cool too, because it's like you start getting
your mouth so I pay for the materials.
Speaker 6 (09:14):
I make what I call a draw schedule, which is
the same kind of schedule you have to give your
hard money lender.
Speaker 3 (09:20):
When you get a loan from a lender. You can't
just tell the lender, oh, I need fifty thousands for renovation.
You gotta kind of like.
Speaker 6 (09:25):
Map it out, like all right, I'm gonna need two
thousand take up the house. I'm gonna be this much
for this, and you kind of like do every step
of of you know what's required, you map it out.
When this is already mapped out, then you know you
start pulling like the money out all right.
Speaker 4 (09:40):
So okay, so whole verse flips because you hear these
two kinds of trains of thoughts in realitate.
Speaker 3 (09:46):
Right, some people only want to flip. Some people only
believe in buying and holding. Some people do both. You're
more on buying holding side, right, Yeah, more buying holding.
Speaker 6 (09:56):
It's it's it's a little more complicated because it's like
when you buy and flip, it's pretty sure straightforward. You
buy a house, you renovate it, you fix it, and
you suddenly you make a profit. We're trying to hold it.
You know, it goes back to the open of appraisal.
Whatever it doesn't you know, it doesn't come through, and
the appraisal doesn't come in right, so you know you.
Speaker 3 (10:13):
Kind of got to like really, you know, maneuver your
way around that.
Speaker 6 (10:16):
But but it's if you buy a house as again,
you follow it like that phone to make sure you
follow the cash law. It's then about real estate to
always all numbers. So you kind of have all the
numbers in front of you. Basically, you already know how
much money you're going to collect the runt. You already
know how much you're paying for the property over time.
Once you already know this, you already know what you're
(10:37):
gonna spend the renovation, so you kind of already know
what the mortgage is going to be, what the rent
is going to be, what the profit is going to be.
And so when you see it's a really good profit,
you keep it and you know you want to let
it go.
Speaker 3 (10:46):
You want to keep it.
Speaker 4 (10:47):
So how do you learn that, like to say, okay,
all right, I understand that you want to buy a
home for cheat and fix it up. But the average
person they don't have any knowledge of like, okay, how
much this is actually going to cost to renovate, or
how do I know it's a good deal, Like you
know what I mean, Like, if you're just going in
with no team, just by yourself, how do you It's.
Speaker 3 (11:07):
Very likely you're gonna be a first time on buyer.
Speaker 6 (11:09):
So I'd recommend either go for a three family or
four family and light renovation. So it's like you know,
paining the walls, you know, may throw some lemon the flooring.
Make sure you know how much rent is coming in
on this property, and then also see how much you're
paying for it, and know what your mortgage is going
to be. So the difference that's going to be your
cash flow. As far as like what is the number?
It is kind of like for me personally, like for
(11:29):
for any property that I get, fifteen hundred is kind
of like my number fifteen hundred in rent.
Speaker 3 (11:33):
The difference between the mortgage and the run.
Speaker 6 (11:35):
So let's say if the mortgage is two thousand, I
needs to be coo in thirty five.
Speaker 3 (11:39):
So the way I do that is basically.
Speaker 6 (11:41):
Five hundred goals aside and that's for your vacancy is
your repairs, so things like it happened in the house
and then the other dolls.
Speaker 3 (11:46):
It's kind of like your profit.
Speaker 4 (11:47):
Okay, that's the minimum that you weren't that's yeah, hutle
thumb for me for my area.
Speaker 6 (11:51):
That's kind of like, you know, if those are the numbers,
then it's a keeper and then and I go through.
Speaker 3 (11:55):
I'll go through on the deal. If those are not
the numbers, and I just kind of like passed up
on the deal.
Speaker 4 (11:58):
Do you have a minimum as far the value of
the home, like you want to get it for at
least fifty thousand under its market value or something like that.
Speaker 6 (12:06):
Yeah, So going back to like the formula is basically
the value of the property. Then I look for what
can I catch this out for? Like, right now, I
have a lender who gives me seventy five percent months
of value, so I already know value. Multipply that by
the seventy five percent. Let's just say the number is
two hundred, so kind of I use two hundred as
my mark, right, and then I say, okay, now I
(12:27):
have the two hundred thousand, my hair, look at how
much you know I'm paying for the property. Let's just
say it's there's one hundred. That's one hundred spread. Now
I look at how much is going to cost me
to renovate. It's gonna cost me one hundred to renovate,
and then cash out is kind of two hundred. There's
two hundred basically, like there's no there's no money in
there basically, so it's kind of like there's one hundred.
Then I have to be like, let's say one fifth
(12:47):
or even one seventy five, so that once I'm done renovating,
I do the cash out, I'm actually able to get
my money back. Like the goal is not so much
to make a profit on the cash out, but just
to at least get your money back so you can
move on to the next one.
Speaker 3 (12:59):
Because if you do it correctly, if let's say you have.
Speaker 6 (13:03):
Thousand dollars to buy a property, you go out, you
buy a property, you renovate it, you rent it, and
then you cash it out. If you guys needs to
get back your thirty thousand, and it's like, let's say
it's from it will take you six months to do that.
So six months later, basically you got your thirty you know,
you got your thirty thousand.
Speaker 3 (13:21):
Dollars back, and you do that again. So like it's
kind of like with.
Speaker 6 (13:23):
That same money every six months you can buy a property,
or every three months, depending how.
Speaker 3 (13:27):
Fast you move. And you're taking your money after some
people wild clear you're taking your money out. Be it
not home equity loans, right, you're taking your money out
to the hard money, like not just the hard money.
Speaker 6 (13:38):
So key word is asset based lender, acid based lender.
Speaker 3 (13:42):
Yes, it's income based lenders.
Speaker 6 (13:44):
Will be like it Wells Fargo or your Bank of America,
you know, your local bank, they're the income based.
Speaker 3 (13:47):
You know, you go to them, they.
Speaker 6 (13:48):
Want to see the credit score, they want to you know,
they want to see that you have a really good
income taxes.
Speaker 3 (13:53):
You know, they're actually making good money. Yourself. Me, all
of my money comes from real estate. So when I
go to a bank and you know, I.
Speaker 6 (14:00):
Still try it out once in a long because they
got a really good interest right now, always getting that
for the loans, because it's like all they see is like, oh,
they just see all these expenses. Everything's coming from real estate.
So for them it's like, oh my god, it's like
such a high risk.
Speaker 3 (14:10):
You know, we can't we can't rap with them.
Speaker 6 (14:12):
But when you go to these ascid based lender, they
don't see any of that. All they're seeing is like,
what is the house? Like, this is the house right now?
What how much you think is worth? It's worth this much?
Speaker 4 (14:20):
All right?
Speaker 3 (14:21):
This is how much? N Now there's how much I'm
collecting the rent. So it's like all right, cool, yeah,
we could give you the loan on that. So outside
of hard money lenders, who else is the asset based
slender acid based slender the one I used right now.
They're called Visio, So they're like they're like companies, Yeah, yeah,
the companies nation wide No, no, this is no.
Speaker 6 (14:38):
They're nationwide legit bank companies, but they just work with investors.
What's the one that you use? Visual lengthing is the
one that I'm currently using right now. That's another thing too,
I man, you got to keep these guys in rotation
because it's like the other lender that I use before,
they will give me seventy percent. Now this one gives
seventy five percent. That five percent that's a huge difference.
You know. It's if you're talking about three hund two
(15:00):
thousand dollars the house that's fifteen thousand.
Speaker 3 (15:02):
Dollars, what's the interest rate usually from that compared to
like a regular traditional ban the traditional bank. My choice
was it like five percent. These guys are choice like
a six and a half. Yeah, and this is a
five year arm sorry. You know after five years you
have to either sell a house and have to refive.
And we kind of spoke about camera, but we said harmony.
Speaker 7 (15:19):
Anybody could be a hard money lender, right, either do
it individually or you can team up.
Speaker 3 (15:23):
With a bunch of people exactly.
Speaker 7 (15:24):
And I think one of the other things is that
the time frame, right, the timeframe when they want their
money back is obviously a lot different, right, This is
not a thirty year thing, right, they want their money
back then, Like what are some of the time frames?
Speaker 6 (15:34):
Well, hard money lenders they want their money back ideal
it like in one year. They might give an extension
for another six months or another year. With these cash
out has to base lenders, they'll give you loans for
a fixed for five years, like the thirty year mortgage.
But basically is it like an interest race for five years,
seven years, or ten years.
Speaker 3 (15:51):
But after you know, at one point they want.
Speaker 6 (15:53):
You to either you know, refi them out sell the house,
or you could go with the thirty year program.
Speaker 3 (15:58):
But the interest rate's gonna be a lot high. You
might look at like a eight and a half nine.
Speaker 6 (16:00):
Percent, So I'd rather just go with the short terms.
I figured out, you know, five years for me is
like a long time, and I'm constantly evolving in real estate.
So I figured, like, you know, get the lower interest
rate just to increase the cash flow, and then in
five years, I'll figure it out.
Speaker 3 (16:13):
You know, what's the next So what do you usually
do in five years? What do you do?
Speaker 6 (16:17):
What's your game plan? But let's just say right now,
I work with my portfolio right now. Right now, I
just started building brand new construction houses. Those I'm not
gonna keep. Had I done new construction a couple of
years ago, I definitely would have kept them. But my
mindset right now is to develop buildings. And I already
have the land to start developing buildings. But I feel
like that's like too far of a reach for me
(16:38):
right now. So what I'm gonna do. I'm gonna end
up selling about from ten to fifteen new construction. Sell those,
get that money, and then start building the buildings. So
like in five years, I already have a couple of buildings.
Once I start developing the buildings, let's say if I
developed a thirty in the building, I'm gonna start unloading
thirty unions of these like small properties, like I don't
want to deal with like the headqu of these small
(16:59):
ones when I have thirty tenants in one section.
Speaker 7 (17:01):
If this sounds like monopoly, it is like I literally
watched your vision board and like the last board is
like and when I get all these things, I'll have
my monopoly. So you're starting with the little the little
greenhouses until you can get the red building right and
once you start doing that.
Speaker 3 (17:17):
Three three green houses in one red hotel, that's that's
hotel hotel.
Speaker 4 (17:21):
If you understand me, now I'll sell all the topics
stand monopoly, you can understand how to make money in
this world.
Speaker 6 (17:25):
I'm gonna take this right now, like the way I
play Monopoly as a kid, and even now that's the
same way I approach realistic. It's like my strategy when
I play Monopoly is just you know, obviously you got
to go around goal.
Speaker 3 (17:37):
You just collect the money.
Speaker 6 (17:38):
But whenever I land on a piece of property, I
try to get that property. Like I focus is just
getting like the property and then you know, focus on
getting like kind of like the like the houses.
Speaker 3 (17:46):
So it's kind of like that sort of what I've
been doing. It's like if I see a really good
deal and I land on it, I'm gonna try to
get it, you know, it's like nothing't let it pass out.
Speaker 4 (17:54):
Now.
Speaker 3 (17:54):
I own properties that are kind of like next to
each other.
Speaker 6 (17:57):
If you look at a building anywhere you go and
you really size up the building, you realize it's like,
you know what, it's not that big of a land.
It's just that a small piece of land. They just went,
you know, pretty high up and they have all these units.
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Speaker 6 (21:00):
City is where you're gonna find the buildings. You're not
gonna find them in the suburbs. So now if you
basically it's sort of just like monopoly to get you know,
four properties, and on those four properties, like your pup
a building.
Speaker 3 (21:10):
All right, So that at least perfect segue into our
next segment where we're gonna talk about your next level
of what you're doing, which you was just briefly talking about,
but we're gonna go into details for the next level.
All right, So we're playing. We're playing monopoly with real money,
like the what was that video? Presidents shouted the shout
that Jay we had the reference day. Yeah, we kept
(21:32):
a lot easy two players. I'm gonna play with some
real money, easy, Dame Big. We was kind of raised
off for music. That's what we we. We relate to
the music a lot.
Speaker 4 (21:43):
But if anybody from that era you remember they were
playing Monopoly with real money, but.
Speaker 3 (21:49):
It is actually really playing monopoly like rat. It's bigger
than rat. We're getting so all right, So now you
talked about the blueprint as far as to buy the
homes and then to get the money out of the
homes and then buy another home and kind of keep
(22:09):
that's like bone what you're saying that. See, all successful
people have a plan, right, nobody just start.
Speaker 4 (22:15):
We had another guest on episode eleven, shot Derek Falcon.
He was a great episode on He's a restaurant own
in Baltimore, and he spoke about you have to have
a vision, right his he was like, whenever he goes
into something, he thinks about like what is his grandkids
going to inherit?
Speaker 3 (22:30):
You know, that's like his play, like what's the grandkids
going to inherit? Even though he doesn't even have kids yet,
don't think so.
Speaker 4 (22:37):
But so that's like you got always think three steps ahead.
So you already you're already playing three steps ahead.
Speaker 3 (22:43):
Right. So you did the you're doing the real estate.
Speaker 4 (22:46):
Thing with the mixed unit well multi level homes and
things that nature, most of them homes. But the next
play is a bigger play, right, Yeah, so we want
to talk about that in this segment. So you told
me over the phone when we spoke, and I saw
the seminar, and now you're just buying plots of land,
right and yeah, now you're a real estate developer.
Speaker 3 (23:06):
Yes, can you talk about that? Yeah.
Speaker 6 (23:10):
So a couple of months back, like I was with
with Caesar and so we went out of a political
function and we're just you know, chopping it up, and
he showed me, he know, he's like, look like if
he's lost day for sale, Like you're interested and I
looked at him. I saw the addresses. I was like, man,
I'm just garbage like.
Speaker 7 (23:28):
People for two seconds, because when I say lots right,
a lot of people will think, oh, you're buying a
parking lot.
Speaker 3 (23:34):
No, so I think that that goes over like they're like,
he's finding your.
Speaker 6 (23:39):
Lives basically, that's where your properties, like the house is located, exactly, Okay,
thank you.
Speaker 3 (23:43):
So he looks at him, so he's like, yeah, for
the same thing.
Speaker 6 (23:45):
But as I'm looking through, I saw there was one
address that popped up and it was two lots and
it went next to two properties that already own that
are right next to each other. So I was like, oh,
wait a minute. I was been looking for that one.
I was like, oh this was like, was like, yeah,
let me get that list. He send it over to
me and then rese out to the rotor. But I
just wanted those two. I wasn't interested interested in the
(24:06):
other ones. Yeah, So but the guy was like, now
the seller he's only willing to basically sell the whole
everything together, like he's not going to just make it
pick which ones you want, So I still push for
I was like, you know what, then I'm going boy,
you know, I try to.
Speaker 3 (24:18):
Squeeze in half of them and like putting them off
for like half. He's like, nah, he wants, he wants.
You know, you gotta buy everything.
Speaker 6 (24:23):
So I low balled them on everything, and just with
the idea, I said, you know what, I'm going to
buy everything.
Speaker 3 (24:28):
And as soon as I buy it, did the numbers
that if.
Speaker 6 (24:30):
He gives it to me at this price, I could
just throw it back up the market, just make a
few a few dollars on it. So get into the process.
I ended up going on the contract. As I'm going
on the contract, I'm started doing more research. I started
researching brand new constructions and I noticed that they were selling.
Speaker 3 (24:46):
For like three fifty three thirty three sixty And.
Speaker 6 (24:52):
I realized that they are new constructions. But these new
constructions were built in two thousand and three. Now these
will be building twenty eighteen. So I was like, waiting,
that means that these have to be worth a lot
more than so at least three seventy five. So so so
I figured, so the key is like, no number one,
you gotta know what you can you saw something for
(25:12):
so like I had to be seventy five. So now
how much am I paying for these lasts?
Speaker 3 (25:17):
On average? I was like paying like twenty five twenty
about twenty five thousand. I mean, how many left did
you buy? Twenty two? Well two twenty five thousand a piece?
Twenty thousand piece here? And there was like another like
a two family ender that they just kind of like
the win do you? How do you? How do you buy? List?
You buy any cash? Can you get like a moan
for that? Yeah? That was like a message.
Speaker 6 (25:36):
But I'm colling up like the hard money numbers that
I use, and they're like, we don't know, I'm vacant lost.
Speaker 3 (25:40):
I was like, wait, okay, I just put up.
Speaker 6 (25:44):
I just put up like twenty thousand dollars non refundable
with you. You can't know me on this, Like now
you know what you gotta put up like fifty percent.
Speaker 3 (25:51):
I was like, shit, I can't. I was like, no,
that's too much, is it?
Speaker 6 (25:53):
And I started making pocals and I start explaining to
you know, I had the conversation, I know how much
business we've done.
Speaker 3 (25:58):
We got it.
Speaker 7 (25:58):
You got some great context if I close myship really
good relationships man.
Speaker 3 (26:05):
And I'm a quiet guy, like you know, another like
a big speaker.
Speaker 6 (26:08):
But you know when it comes to like you know,
business and stuff and then get on that phone, it's like,
you know, I started, like I start.
Speaker 3 (26:11):
To transforming man like.
Speaker 6 (26:13):
Like Michael Jackson gets on stage, you know, quiet do
off stage, but on stage.
Speaker 3 (26:16):
Against the performance showtimes. So long time shot.
Speaker 6 (26:20):
I convinced them to loan me uh and they were
willing to do. You know, the London was waiting to
do twenty percent. One thing about these lots that I
picked up though, is that because they're located in urban areas,
they're located in redevelopment zones, which meant that the city
has these kind of sort of like set idea of
what you can build on these lots, and if you
(26:40):
meet the square footage and what they want, then you
don't need to go in front of a zoning board.
Speaker 3 (26:45):
You can just basically submit payment. Like to just submit
plans to the building department is just like taking out
a permit on a whole new construction.
Speaker 6 (26:54):
So that allowed me to leverage these outs. So as
soon as I closed, I was able to you know,
get with the architect and and send it all the paper.
We can already have permits on five which means I
already have the financing in place to build these five.
Speaker 4 (27:08):
What's the permits you talk about that when you spoke,
when we first spoke, you had to have the permits,
Like it's a process, right when you buy a land,
Like it's different than just buying a home.
Speaker 6 (27:17):
Right, So yeah, yeah, when you yeah, when you buy
a land, is it's more complicated because it's like banks
don't really want to loan online because what think you have?
Speaker 3 (27:23):
Just have dirt.
Speaker 6 (27:23):
Basically, you know, it's like no, no, no property, there's
no cashlow, nothing on it.
Speaker 3 (27:27):
It's just basically breaking lots.
Speaker 6 (27:28):
And in most places when you buy a lot you
have to go in front of the zone board, which
can take a year before you can start building up
these you know. Unfortunately I was able to kind of
like build right away. So now going back to like
the numbers, basically like so three seventy five and twenty
five for the lot, that puts me like a three fifty.
So now the difference between now, let's say a few
(27:49):
years back, is like the market where is that now
where it was a few years back. If we go
back like three years you built a new construction home,
you were lucky to get two fifty maybe two seventy
five for it.
Speaker 3 (27:58):
But now thinking about it, now, let's say it.
Speaker 6 (28:00):
If it costs you two twenty five to bill and
you're gonna sell it for two fifty years, you're almost
like bricking Ethan basically, or even like, you know, two
seventy five, I'm ready to make much money. So now
then you can go three seventy five. That gives an
extra whole hundred thousand, So that makes a big difference.
So that kind of changed over my mind. I said,
you know what, why am I going to not do
complete renovations when I could just basically build all these homes.
Speaker 3 (28:21):
So now instead of grabbing the lots, keeping the ones.
Speaker 6 (28:24):
That I want to send off the other ones and
saying no, I forget that, I'm gonna basically get all
these lots and I'm gonna build all of them.
Speaker 7 (28:29):
So can we go back a little bit because you
said season had a list, right, and it was twenty
two you're twenty two lots. Where does someone even see
that list? Like is that at an auction? Where are
we getting that? We have to go our kind of
clerk or something.
Speaker 6 (28:40):
No, No, that's just relationships, and it's Basically, when you're known,
you know, for making deals, deals will pop up on
your email, like you know, I get phone calls all
the time like hey listen, I got this deal, and it's.
Speaker 3 (28:51):
Like, you know it's a good deal of John Binder,
it's not a good deal, and I'll let it go.
A lot of times people tell me like, hey, you
ever let go one of those deals. You don't mind?
Then is this? It's like you don't want it because
it's like if there's a reason if I let it go,
is because it's not a good deal. Basically, if it's.
Speaker 9 (29:02):
A good deal, I'm somehow someway I'm gonna make ap
So all right, So okay, So now you're building homes, right,
So when you're building homes from scratch?
Speaker 3 (29:13):
Right, what kind of homes are you building? How do
you build a home? Who do you have? Contract? Like?
How does that happen? So? All right?
Speaker 6 (29:21):
So I mean, first of all, you know, the idea
of building something from the ground up was was scary.
Speaker 3 (29:26):
I was like I've never done it. It's like how
am I gonna do this?
Speaker 6 (29:29):
But you know, going back to that whole renovation schedule
when you map it out and you like kind of
break everything up into pieces.
Speaker 3 (29:35):
It's like when you do a.
Speaker 6 (29:37):
Complete renovation, the first thing that I basically look for,
you know, you need to cut the property.
Speaker 3 (29:42):
Once you cut the property, then you go to the framing.
You know, it's like a system.
Speaker 6 (29:46):
And from framing you go to you want to do
the plumbing, Then you do the electric you know, then
it comes the installation, it comes to driveable.
Speaker 3 (29:53):
So it's like a process of step. You just kind
of map it out step by step.
Speaker 6 (29:56):
So now if you put complete renovation one side, you
put new construction on the the other side, what's the
difference between the two.
Speaker 3 (30:02):
The only difference is that.
Speaker 6 (30:03):
On a on a car, on a new construction, you
need foundation and you need framing. Once you have foundation
and framing, pretty much what you have is like the
skeleton of a house. When you buy a house and
you do a gu renovation, that's all you left with
the skeleton of the house. So now if so I
kind of like really did the math. I was like, oh,
if I picked up the last of twenty five, how
(30:24):
much can it really cost me to do a foundation?
And I just you know, I figured, you know, what
made you know, made some phone calls just you know,
contract is giving me prices, and it's like most people say,
like forty thousand for cement up forty thousand you're just
need just the found oudation out. So it's like forty
thousand and made some other phone cause how much is
you know for the frame this thing? It came up
to price like forty thousand, like eighty so now eighty
(30:45):
plus the twenty five that's one of five. I was like,
I'm paying that right now to regulate it for like
a complete renovation.
Speaker 3 (30:51):
So and that's the worst case scenario right now.
Speaker 6 (30:54):
Being like someone who who knows how to maneuver my
way around construction, it is like those the ill probably
cut both of them down, like be half.
Speaker 3 (31:03):
How much of course, like how much more costs to
build up everything else?
Speaker 6 (31:07):
Yeah, you know right now it's gonna be my first rodeo.
So it's kind of like it's just a budget that.
Speaker 3 (31:11):
I have in my head. And my budget right now.
Speaker 6 (31:13):
Is like one seventy five and you sell that home
fow much three seventy five to.
Speaker 3 (31:17):
Make two hundred thousand. But then you know, minus the
twenty five of the line and minus the.
Speaker 6 (31:22):
Closing comes right, So let's say like one fifty, Like
ten of them is like one point five.
Speaker 3 (31:27):
So what's it? Are you selling these homes or are
you sun and all?
Speaker 6 (31:30):
Like I said, like only segning them because it's like
now my vision is to develop buildings, so I already
have the last for the buildings. I just don't have
the knowledge of building the building and I don't have
the liquid funds to get into a project like that
because it's like I have this big portfolio and net
worth is looking pretty nice. Yeah, but you know, the
cash flow is looking pretty tight because it's kind of like,
(31:52):
you know, the way I see it, once my all
my personal bills are taken care of, is like if
I have five thousand dollars in cash low in a month, Yeah,
the way I see it is like money has to
work for me. I don't work for money, so it's
kind of that money is just sitting in the back.
I just got basically five thousand dollar and lazy in
the back. So I got put into work. So I'll
look around and try to find like a property and
that I know I can hold up, Like that's five
(32:13):
thousand dollars worth of mortgages that I can hold up
on the house until I'm ready to start, you know,
working on it.
Speaker 3 (32:18):
You said money works for me. I don't work for money.
I was asking going because you told myself at all camera.
He was like net worth or what was the soul?
You said, not yet, because it's kind of like y'all
separate things you got here. You know, your asset minus
be your liabilities, which is you know, listen, we heard
that networth networth rich, but cash Oh yeah, networth. Yeah,
(32:43):
I'm networth rich but cash flow poor. Yeah.
Speaker 6 (32:45):
Yeah, I'm cool with that for now because it's like
I'm trying to build up. I'm trying to, you know,
just climb up to a certain level.
Speaker 7 (32:50):
All right, So your net worth could be thirty million, right,
but your cash flow could be three thousand, And that's okay, right,
exactly like.
Speaker 3 (32:57):
I wish I had.
Speaker 6 (32:59):
But it's basically like, yeah, like you know, it's two
different things.
Speaker 3 (33:03):
Like it's just as raptists.
Speaker 6 (33:04):
For example, like you know, people who get these large
amounts of money, they're.
Speaker 3 (33:09):
Cash bitch, right, Like they have a lot of cash
on hand, but they probably have like no net worth.
Speaker 6 (33:13):
You probably see people with like the nice cars, the
jewelry and everything, and then they riding around within net Worth. Yeah,
so then you can see someone like me. Now I'm
driving on to Yoa Tacoma. It's like I'm not studying,
but it's like the network.
Speaker 3 (33:25):
Is looking nice. Network is looking more than nice.
Speaker 7 (33:28):
What's the time frame on building from the ground up?
Speaker 6 (33:32):
That's then, you know, it's just like you don't know
when you're not familiar with something.
Speaker 3 (33:35):
In my mind, I always sat I was like a
year is gonna say to build up a house.
Speaker 6 (33:39):
Before I started doing the house, I was like six
months I'm gonna build, you know, it's going to be
the time frame.
Speaker 3 (33:43):
Now the time frame is looking like three months. So
I think like three months I could knock out house. Wow.
Speaker 6 (33:48):
And I could probably build them like two probably like
two to three weeks apart. So's you go on my Instagram.
Might now already posted two of them. I saw exactly
one already have the foundation, the other one I'm working
on the foody, and then probably like another two weeks.
One already is gonna have to frame me. The almost
gonna have the foundation, and I'm gonna be working on
the foot one. And it's like and they're gonna be
(34:08):
lined up like that.
Speaker 7 (34:09):
And you just using the same team he's time or
you're like, you know what, I'm gonna capitalize by using
different teams that.
Speaker 3 (34:14):
I trust to work on these properties.
Speaker 6 (34:16):
It's like I have my core guys that I trust
and like, I know they can handle things, and then
it's their responsibility to build up on them.
Speaker 3 (34:24):
So it's kind of like like my project manager.
Speaker 6 (34:26):
His job is to kind of like I tell him
this is what I want to do, and then he
goes out. He finds the extra help, even if it means,
you know, reaching out to a contract is to kind
of help him out.
Speaker 3 (34:37):
You know.
Speaker 6 (34:37):
It's crazy, like if I reach out to a contract
that let's just say, you might tell me fifteen thousand,
I tell him to reach out, he ends up getting
it for time, you know, because it's like the relationships
and Bason, the concept of like, hey, listen, you gotta
give in your prices.
Speaker 3 (34:49):
I need to make money off of this. But then
you know, obviously I know what's going on, and the
savings gett passed down on me. Yeah. Wow, Ladies and gentlemen.
Speaker 4 (34:58):
Once again, free education, right, that's a good thing about
the show.
Speaker 3 (35:04):
Instead, it's all.
Speaker 4 (35:05):
Free and all of our guests are willing to provide
information because you didn't have to, you know, tell people
what you're doing, like you could just be selfish.
Speaker 3 (35:16):
Yeah, like I mean, I'll say this much is like
going on.
Speaker 6 (35:18):
When she's did the first seminar and he tells me,
I don't want to do a seminar, I was like, oh,
that's cool, Like I remember we spoke about doing like
little seminars.
Speaker 3 (35:26):
But in churches, it's gonna get back to the community.
Speaker 6 (35:30):
Like and I see every time I see like, you know,
a pastor, I've talked to the laylists.
Speaker 3 (35:33):
You know, I'll do real estate. You want me to
go to speak to your congregation that it's like, let
me know, I'll come through and i'll speak. You know,
nobody's everybody, you know what I mean.
Speaker 6 (35:43):
But it's kind of like maybe now you know, start
getting phone calls and stuff.
Speaker 3 (35:46):
But you know, but so I thought that's what's gonna
be here, Like.
Speaker 6 (35:49):
Nah, we're gonna do like these seminars, you know, Like
I was like, we don't, you know, why.
Speaker 3 (35:55):
Why do this?
Speaker 6 (35:56):
But then when I went to the first seminary, I
was mind, you I was supposed to speak at the
first seven or and it's like When I get that,
I was like, oh no, I can't speak, man, It's
like I'm not public speakers. I was like, nah, but
looking at the crowd, when I seen the crowd, seem
like everybody's like from the you know, the first one
was the past, and I've seen a lot of people
that I know and and it just.
Speaker 3 (36:12):
Kind of hit me and I'm like, you know what, man,
that was me ten fifteen years ago.
Speaker 6 (36:15):
I knew nothing and I needed it, like somebody to
kind of just not help me out, like giving me
a hand, but just kind of like guiding me like
some of this is you know, this is the direction,
and it's kind of like and we came from nothing.
So it's like I feel like when they see us,
you know, they're not seeing these guys in these fantacyes too,
they seeing themselves. So they're saying like, you know what
if you know, if like if they did it, they
put it, they way to put into work, and you know.
Speaker 3 (36:35):
Look with there are now le meanes, I can do it.
Speaker 6 (36:36):
So I feel like I felt I felt bad like
that I didn't speak.
Speaker 3 (36:40):
I felt bad like yeah, you know what, I let my.
Speaker 6 (36:42):
Fear, you know, stop me from going up there like,
and these people it's kind of like they need like
that motivation, you.
Speaker 3 (36:47):
Know what I'm saying. They need that information. So that
motivated me to kind.
Speaker 6 (36:50):
Of like, you know, you know, to push through and
then I should speak on stage. And I feel like
it is like a responsibility for you know, for people
like us that we are at.
Speaker 3 (37:00):
A at a certain you know, certain.
Speaker 6 (37:02):
Level where we have like this knowledge of this information
and it's kind of like we could keep it. But
it's like, you know, it's Tiger Woods right now, showed
you how to play golf, Michael Jordan showed you how
to play basketball.
Speaker 3 (37:12):
That's not gonna then.
Speaker 6 (37:13):
They're like exactly, I mean, they're still gonna be who
they are. So I feel like, if you know, if
I go out here and I tell you everything that
I do, how I do it, you still want to
regardless regardless. I mean, I'll tell you this right now, man,
like I actuldly like start today and just with these
last that I have, with these uh, these plans that
have with the buildings, I'm.
Speaker 3 (37:29):
Gonna stay busy for the next five years.
Speaker 6 (37:31):
And all my crew, everybody that works for me, they're
gonna stay busy for the next five years, so we're
all gonna eat.
Speaker 3 (37:36):
So it's kind of like, you know, why why I
try to keep that information. It's kind of like, you know,
I don't need to bring you down, so I could elevate,
you know what I mean.
Speaker 6 (37:43):
It's like I could elevate myself and it bring you up,
and it's like and I'll still be up to.
Speaker 3 (37:46):
Everybody needs Yeah, everybody needs everybody. Let make sure.
Speaker 6 (37:52):
My graduates from my school being forced bad drop drop,
Mike drop bad drop.
Speaker 3 (38:00):
Hi, you.
Speaker 1 (38:11):
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all you need
You just realized your business needed to hire someone yesterday.
How can you find amazing candidates fast easy? Just use Indeed.
Stop struggling to get your job posts seen on other
job sites. With Indeed sponsored jobs, your post jumps to
the top of the page for your relevant candidates, so
you can reach the people you want faster. According to
(00:22):
Indeed data, sponsored jobs posted directly on Indeed have forty
five percent more applications than non sponsored jobs. Don't wait
any longer, speed up your hiring right now with Indeed,
and listeners of this show will get a seventy five
dollars sponsored job credit to get your jobs more visibility
at indeed dot com slash pod Katz thirteen. Just go
(00:45):
to Indeed dot com slash pod katz thirteen right now
and support our show by saying you heard about Indeed
on this podcast. Terms and conditions apply. Hiring Indeed is
all you need.
Speaker 2 (01:05):
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Speaker 3 (01:48):
Let's do it. My graduates from my school being force
backdrop drop like drop bag, drop drop. All right, so
(02:14):
we're going to go into the nitty gritty.
Speaker 4 (02:16):
But before we start, you have to acknowledge this because
we don't want this to go with people said, so, okay,
twenty twelve, which was seven years ago, so.
Speaker 3 (02:27):
You borrowed thirty thousand, yes, right to your.
Speaker 4 (02:31):
Second investment property and then from there you kind.
Speaker 3 (02:36):
Of just learned the ropes and you're at where you're
at now. So in the words of Kendrick Gloogaugh, he
took thirty thousand in freak to twenty five million seven years.
Speaker 5 (02:51):
So yeah, it's I'll say twenty sixteen though, that's that's
kind of like what the magic happened though, Okay, it's
kind of like that's when like I was consistently able
to purchase a property, fix it up, rents it out,
and then once it's already rents it go to a
lender to catch it out.
Speaker 3 (03:08):
All right? So can we all right? Son? We so
can we get it? To look at the chart though,
you noticed how it's kind of like I was like, oh,
it's like, you know, get a three, it's like one one, yeah, but.
Speaker 6 (03:17):
It's like twenty sixteen. That's kind of like when it
really like made that a h. So match is twenty fifteen.
I'm twenty fifteen, So can we do? That's when I,
you know, the first cashown. Can we go to twenty fifteen?
When when you start to really take off?
Speaker 4 (03:28):
And kind of just because that's like your blueprint right
as far as yeah, can you just break that.
Speaker 3 (03:33):
Down as far as the flips, how you look at it?
All right? I can you just tell exactly like what
you do?
Speaker 6 (03:39):
So what I do is like when I look at
a house is like try not to look at a house.
Speaker 3 (03:43):
I try to look at numbers. So it's in the.
Speaker 6 (03:46):
Formula is basically if I keep try like of my
portfolio and I ask myself like, all right, is this
going to increase my network?
Speaker 3 (03:54):
And then the other question is is this going to
increase my cash flow?
Speaker 5 (03:57):
And if the answer is yes, and it's kind of
like all right, the thumbs up, you know, and I
could get this.
Speaker 6 (04:01):
But now there's the other question now is like how
fast and can I get my money back on this deal?
And then there's like if all three are yes, then
that's when I jump on the deal. Okay, yeah, this
is a deal for me. So it's like every property
that I see, I see with that intention is like
I think, like the most important thing you need to
know is how much can a house a praise for?
Speaker 3 (04:22):
And then it's like the key component here is.
Speaker 6 (04:24):
A praise for which took me a while to understand
because before I would look at a house and I
was just like such an honest guy, and I would
look at it, I would telling myself, like, you know
what that ask I could sell that for two fifty,
so it's worth two fifty. But going back now to
like the inner City, and it's kind of like why
I stuck to Patterson because I felt like I knew Patterson,
like the pomb with my hand and not sure if
(04:45):
it's like if it's you know, if it's the same
for every inner city.
Speaker 3 (04:48):
But let's lay Patterson, get you get a block. This
corner right here is.
Speaker 6 (04:53):
Like where all the hustlers are at, and it's a
lot of crime basically, right, But this corner right here
was just the same block, super quiet.
Speaker 3 (05:01):
It's cool. You could, you know, you could walk by.
Speaker 6 (05:02):
Nobody's gonna, you know, try to hustle you for you know,
to buy any any drugs or anything like that.
Speaker 3 (05:06):
Yeah, but now they're on the same exact block.
Speaker 6 (05:09):
So now you picture somebody coming from out of town,
like an appraisal or anyone, and now they see this
property over here. But now when they look at comparables,
they're looking at the whole neighborhood and go to look
for the meeting area. So it's like if this property record,
you know right here, basically let's say this one is
cells for two hundred, but you know, let's say this
(05:29):
one sells for for for two fifty. Let's just say, right,
but now if you're buying this one and you're buying
it through a short cell, it's gonna be a foreclosure.
More than likely they're gonna use this one here as
a comparable. So now this brings down the value of this,
but this one is worth more, and you know it's
worth more because you know the area better. So and
then going back to the other thing about knowing about
(05:50):
you know, appraisal one values, it's you know, that's kind
of where it's at because it's like you know that
this one's gonna suffer less and this one's gonna sell
for more. But when you put those two paper, depending
which way it goes, remember as I told you earl
Ago is like appraisal is not a science, is an art.
So depending on the artists, depending which way they want
to go, that value could come in at two hundred,
(06:11):
can come.
Speaker 3 (06:11):
In at two fifty.
Speaker 6 (06:12):
So I try to look for the house it's worth
two fifty that I know the value is going to
come in at two hundred.
Speaker 3 (06:16):
It's it's kind of like now off the bat.
Speaker 6 (06:17):
As soon as I buy the property, already know I
have fifty thousand inequity. The other part of it too,
which is why I always try to look for properties
that need renovation, because most people do not want to
deal with renovations.
Speaker 3 (06:29):
Most people want to just grab the keys, go inside
the house. And they're good to go. So when you
get a property and you're renovating, you adding value to it.
Speaker 6 (06:36):
So now let's just say this scenario, right, you ended
up picking this house for two hundred, but you know
it's ready off the bat, it's already worth two fifty.
But now you let's say you throw twenty five into it.
Now it's not two seventy five. Now it's three hundred.
So you got it more value to it.
Speaker 7 (06:52):
So when you're doing that right, when you're about to rentedy, right,
I'm assuming on your first property you didn't.
Speaker 3 (06:57):
Have a team or did you go in right?
Speaker 7 (07:00):
So what was the process of selecting a team of contractors,
like honest people out of right so that you don't
get ripped off? Or was it like you know what,
I'm gonna learn the craft and do it myself, or
what was the process in creating that.
Speaker 6 (07:14):
Well first properties, let's just say the second property that
I purchased, right, that one, I did not do a
gover renovation. I just went in through a couple, you know,
some line and the floorings, painting, the walls, patched up
a few holes.
Speaker 3 (07:25):
I think I did like one bathroom.
Speaker 6 (07:27):
Had I purchased the house today that probably would have
been a complete gut renovation.
Speaker 3 (07:31):
So you have to do you know, where you can
handle what you know.
Speaker 6 (07:36):
So when you start off, you know, advice everybody, just
start off, you know, with light renovations and kind of
like work your way up. The way it works is
basically you get yourself, you know, the one handy guy,
which once again, this is why it works out with you.
If you're able to buy in your neighborhood, you can
make a few phone calls ady, you know, like, oh yeah,
my cousin has a cousin who is pretty handy.
Speaker 3 (07:56):
He can help you out. So you start off with
the handy guy.
Speaker 6 (07:59):
But after a while, you know, when you start doing
more incense renovations, you know, they might refer you to
someone else. Or it's like, you know, just go to
own Deepot's like and you study, like home mebles worn
by most of my materials, and it's like and if
you go in there and you study, when you see
somebody walking out and all they have is just electrical
materials that you know, this guy very likely is an
electrician or at least knows how to do electrical work.
Speaker 3 (08:19):
Same thing with a plumber and so forth.
Speaker 6 (08:21):
So it's kind of like and you sort of build
up your team, but it's really a trial and never
unless you get some refrols you're gonna get. You know,
a lot of people act me a lot of times
it is like, have ever lost money in real estate?
And the answer is no, just because I've been able
to buy properties to have a lot of equity in them,
but that doesn't mean that it not lose money on
the deal. So it's like if I go in, I
get get a property I'm projecting and make let's say
(08:43):
fifty thousand, and I get this one contract and you know,
he messes up and I end up losing ten thousand
or time still make forty thousand.
Speaker 3 (08:49):
You know, but I didn't really didn't like lose money.
But you know it's still agree Yeah, yeah, it's still agreeing.
Speaker 6 (08:54):
You know, contractors is triggering with contractors is like it's
like that's why I call them contractors, because you're not
careful they will kind of So what I do now
to minimize the chances of somebody ripping me off is
basically I pay for all the materials, which.
Speaker 3 (09:09):
Is pretty cool too, because it's like you start getting
your mouth so I pay for the materials.
Speaker 6 (09:14):
I make what I call a draw schedule, which is
the same kind of schedule you have to give your
hard money lender.
Speaker 3 (09:20):
When you get a loan from a lender. You can't
just tell the lender, oh, I need fifty thousands for renovation.
You gotta kind of like.
Speaker 6 (09:25):
Map it out, like all right, I'm gonna need two
thousand take up the house. I'm gonna be this much
for this, and you kind of like do every step
of of you know what's required, you map it out.
When this is already mapped out, then you know you
start pulling like the money out all right.
Speaker 4 (09:40):
So okay, so whole verse flips because you hear these
two kinds of trains of thoughts in realitate.
Speaker 3 (09:46):
Right, some people only want to flip. Some people only
believe in buying and holding. Some people do both. You're
more on buying holding side, right, Yeah, more buying holding.
Speaker 6 (09:56):
It's it's it's a little more complicated because it's like
when you buy and flip, it's pretty sure straightforward. You
buy a house, you renovate it, you fix it, and
you suddenly you make a profit. We're trying to hold it.
You know, it goes back to the open of appraisal.
Whatever it doesn't you know, it doesn't come through, and
the appraisal doesn't come in right, so you know you.
Speaker 3 (10:13):
Kind of got to like really, you know, maneuver your
way around that.
Speaker 6 (10:16):
But but it's if you buy a house as again,
you follow it like that phone to make sure you
follow the cash law. It's then about real estate to
always all numbers. So you kind of have all the
numbers in front of you. Basically, you already know how
much money you're going to collect the runt. You already
know how much you're paying for the property over time.
Once you already know this, you already know what you're
(10:37):
gonna spend the renovation, so you kind of already know
what the mortgage is going to be, what the rent
is going to be, what the profit is going to be.
And so when you see it's a really good profit,
you keep it and you know you want to let
it go.
Speaker 3 (10:46):
You want to keep it.
Speaker 4 (10:47):
So how do you learn that, like to say, okay,
all right, I understand that you want to buy a
home for cheat and fix it up. But the average
person they don't have any knowledge of like, okay, how
much this is actually going to cost to renovate, or
how do I know it's a good deal, Like you
know what I mean, Like, if you're just going in
with no team, just by yourself, how do you It's.
Speaker 3 (11:07):
Very likely you're gonna be a first time on buyer.
Speaker 6 (11:09):
So I'd recommend either go for a three family or
four family and light renovation. So it's like you know,
paining the walls, you know, may throw some lemon the flooring.
Make sure you know how much rent is coming in
on this property, and then also see how much you're
paying for it, and know what your mortgage is going
to be. So the difference that's going to be your
cash flow. As far as like what is the number?
It is kind of like for me personally, like for
(11:29):
for any property that I get, fifteen hundred is kind
of like my number fifteen hundred in rent.
Speaker 3 (11:33):
The difference between the mortgage and the run.
Speaker 6 (11:35):
So let's say if the mortgage is two thousand, I
needs to be coo in thirty five.
Speaker 3 (11:39):
So the way I do that is basically.
Speaker 6 (11:41):
Five hundred goals aside and that's for your vacancy is
your repairs, so things like it happened in the house
and then the other dolls.
Speaker 3 (11:46):
It's kind of like your profit.
Speaker 4 (11:47):
Okay, that's the minimum that you weren't that's yeah, hutle
thumb for me for my area.
Speaker 6 (11:51):
That's kind of like, you know, if those are the numbers,
then it's a keeper and then and I go through.
Speaker 3 (11:55):
I'll go through on the deal. If those are not
the numbers, and I just kind of like passed up
on the deal.
Speaker 4 (11:58):
Do you have a minimum as far the value of
the home, like you want to get it for at
least fifty thousand under its market value or something like that.
Speaker 6 (12:06):
Yeah, So going back to like the formula is basically
the value of the property. Then I look for what
can I catch this out for? Like, right now, I
have a lender who gives me seventy five percent months
of value, so I already know value. Multipply that by
the seventy five percent. Let's just say the number is
two hundred, so kind of I use two hundred as
my mark, right, and then I say, okay, now I
(12:27):
have the two hundred thousand, my hair, look at how
much you know I'm paying for the property. Let's just
say it's there's one hundred. That's one hundred spread. Now
I look at how much is going to cost me
to renovate. It's gonna cost me one hundred to renovate,
and then cash out is kind of two hundred. There's
two hundred basically, like there's no there's no money in
there basically, so it's kind of like there's one hundred.
Then I have to be like, let's say one fifth
(12:47):
or even one seventy five, so that once I'm done renovating,
I do the cash out, I'm actually able to get
my money back. Like the goal is not so much
to make a profit on the cash out, but just
to at least get your money back so you can
move on to the next one.
Speaker 3 (12:59):
Because if you do it correctly, if let's say you have.
Speaker 6 (13:03):
Thousand dollars to buy a property, you go out, you
buy a property, you renovate it, you rent it, and
then you cash it out. If you guys needs to
get back your thirty thousand, and it's like, let's say
it's from it will take you six months to do that.
So six months later, basically you got your thirty you know,
you got your thirty thousand.
Speaker 3 (13:21):
Dollars back, and you do that again. So like it's
kind of like with.
Speaker 6 (13:23):
That same money every six months you can buy a property,
or every three months, depending how.
Speaker 3 (13:27):
Fast you move. And you're taking your money after some
people wild clear you're taking your money out. Be it
not home equity loans, right, you're taking your money out
to the hard money, like not just the hard money.
Speaker 6 (13:38):
So key word is asset based lender, acid based lender.
Speaker 3 (13:42):
Yes, it's income based lenders.
Speaker 6 (13:44):
Will be like it Wells Fargo or your Bank of America,
you know, your local bank, they're the income based.
Speaker 3 (13:47):
You know, you go to them, they.
Speaker 6 (13:48):
Want to see the credit score, they want to you know,
they want to see that you have a really good
income taxes.
Speaker 3 (13:53):
You know, they're actually making good money. Yourself. Me, all
of my money comes from real estate. So when I
go to a bank and you know, I.
Speaker 6 (14:00):
Still try it out once in a long because they
got a really good interest right now, always getting that
for the loans, because it's like all they see is like, oh,
they just see all these expenses. Everything's coming from real estate.
So for them it's like, oh my god, it's like
such a high risk.
Speaker 3 (14:10):
You know, we can't we can't rap with them.
Speaker 6 (14:12):
But when you go to these ascid based lender, they
don't see any of that. All they're seeing is like,
what is the house? Like, this is the house right now?
What how much you think is worth? It's worth this much?
Speaker 4 (14:20):
All right?
Speaker 3 (14:21):
This is how much? N Now there's how much I'm
collecting the rent. So it's like all right, cool, yeah,
we could give you the loan on that. So outside
of hard money lenders, who else is the asset based
slender acid based slender the one I used right now.
They're called Visio, So they're like they're like companies, Yeah, yeah,
the companies nation wide No, no, this is no.
Speaker 6 (14:38):
They're nationwide legit bank companies, but they just work with investors.
What's the one that you use? Visual lengthing is the
one that I'm currently using right now. That's another thing too,
I man, you got to keep these guys in rotation
because it's like the other lender that I use before,
they will give me seventy percent. Now this one gives
seventy five percent. That five percent that's a huge difference.
You know. It's if you're talking about three hund two
(15:00):
thousand dollars the house that's fifteen thousand.
Speaker 3 (15:02):
Dollars, what's the interest rate usually from that compared to
like a regular traditional ban the traditional bank. My choice
was it like five percent. These guys are choice like
a six and a half. Yeah, and this is a
five year arm sorry. You know after five years you
have to either sell a house and have to refive.
And we kind of spoke about camera, but we said harmony.
Speaker 7 (15:19):
Anybody could be a hard money lender, right, either do
it individually or you can team up.
Speaker 3 (15:23):
With a bunch of people exactly.
Speaker 7 (15:24):
And I think one of the other things is that
the time frame, right, the timeframe when they want their
money back is obviously a lot different, right, This is
not a thirty year thing, right, they want their money
back then, Like what are some of the time frames?
Speaker 6 (15:34):
Well, hard money lenders they want their money back ideal
it like in one year. They might give an extension
for another six months or another year. With these cash
out has to base lenders, they'll give you loans for
a fixed for five years, like the thirty year mortgage.
But basically is it like an interest race for five years,
seven years, or ten years.
Speaker 3 (15:51):
But after you know, at one point they want.
Speaker 6 (15:53):
You to either you know, refi them out sell the house,
or you could go with the thirty year program.
Speaker 3 (15:58):
But the interest rate's gonna be a lot high. You
might look at like a eight and a half nine.
Speaker 6 (16:00):
Percent, So I'd rather just go with the short terms.
I figured out, you know, five years for me is
like a long time, and I'm constantly evolving in real estate.
So I figured, like, you know, get the lower interest
rate just to increase the cash flow, and then in
five years, I'll figure it out.
Speaker 3 (16:13):
You know, what's the next So what do you usually
do in five years? What do you do?
Speaker 6 (16:17):
What's your game plan? But let's just say right now,
I work with my portfolio right now. Right now, I
just started building brand new construction houses. Those I'm not
gonna keep. Had I done new construction a couple of
years ago, I definitely would have kept them. But my
mindset right now is to develop buildings. And I already
have the land to start developing buildings. But I feel
like that's like too far of a reach for me
(16:38):
right now. So what I'm gonna do. I'm gonna end
up selling about from ten to fifteen new construction. Sell those,
get that money, and then start building the buildings. So
like in five years, I already have a couple of buildings.
Once I start developing the buildings, let's say if I
developed a thirty in the building, I'm gonna start unloading
thirty unions of these like small properties, like I don't
want to deal with like the headqu of these small
(16:59):
ones when I have thirty tenants in one section.
Speaker 7 (17:01):
If this sounds like monopoly, it is like I literally
watched your vision board and like the last board is
like and when I get all these things, I'll have
my monopoly. So you're starting with the little the little
greenhouses until you can get the red building right and
once you start doing that.
Speaker 3 (17:17):
Three three green houses in one red hotel, that's that's
hotel hotel.
Speaker 4 (17:21):
If you understand me, now I'll sell all the topics
stand monopoly, you can understand how to make money in
this world.
Speaker 6 (17:25):
I'm gonna take this right now, like the way I
play Monopoly as a kid, and even now that's the
same way I approach realistic. It's like my strategy when
I play Monopoly is just you know, obviously you got
to go around goal.
Speaker 3 (17:37):
You just collect the money.
Speaker 6 (17:38):
But whenever I land on a piece of property, I
try to get that property. Like I focus is just
getting like the property and then you know, focus on
getting like kind of like the like the houses.
Speaker 3 (17:46):
So it's kind of like that sort of what I've
been doing. It's like if I see a really good
deal and I land on it, I'm gonna try to
get it, you know, it's like nothing't let it pass out.
Speaker 4 (17:54):
Now.
Speaker 3 (17:54):
I own properties that are kind of like next to
each other.
Speaker 6 (17:57):
If you look at a building anywhere you go and
you really size up the building, you realize it's like,
you know what, it's not that big of a land.
It's just that a small piece of land. They just went,
you know, pretty high up and they have all these units.
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Speaker 6 (21:00):
City is where you're gonna find the buildings. You're not
gonna find them in the suburbs. So now if you
basically it's sort of just like monopoly to get you know,
four properties, and on those four properties, like your pup
a building.
Speaker 3 (21:10):
All right, So that at least perfect segue into our
next segment where we're gonna talk about your next level
of what you're doing, which you was just briefly talking about,
but we're gonna go into details for the next level.
All right, So we're playing. We're playing monopoly with real money,
like the what was that video? Presidents shouted the shout
that Jay we had the reference day. Yeah, we kept
(21:32):
a lot easy two players. I'm gonna play with some
real money, easy, Dame Big. We was kind of raised
off for music. That's what we we. We relate to
the music a lot.
Speaker 4 (21:43):
But if anybody from that era you remember they were
playing Monopoly with real money, but.
Speaker 3 (21:49):
It is actually really playing monopoly like rat. It's bigger
than rat. We're getting so all right, So now you
talked about the blueprint as far as to buy the
homes and then to get the money out of the
homes and then buy another home and kind of keep
(22:09):
that's like bone what you're saying that. See, all successful
people have a plan, right, nobody just start.
Speaker 4 (22:15):
We had another guest on episode eleven, shot Derek Falcon.
He was a great episode on He's a restaurant own
in Baltimore, and he spoke about you have to have
a vision, right his he was like, whenever he goes
into something, he thinks about like what is his grandkids
going to inherit?
Speaker 3 (22:30):
You know, that's like his play, like what's the grandkids
going to inherit? Even though he doesn't even have kids yet,
don't think so.
Speaker 4 (22:37):
But so that's like you got always think three steps ahead.
So you already you're already playing three steps ahead.
Speaker 3 (22:43):
Right. So you did the you're doing the real estate.
Speaker 4 (22:46):
Thing with the mixed unit well multi level homes and
things that nature, most of them homes. But the next
play is a bigger play, right, Yeah, so we want
to talk about that in this segment. So you told
me over the phone when we spoke, and I saw
the seminar, and now you're just buying plots of land,
right and yeah, now you're a real estate developer.
Speaker 3 (23:06):
Yes, can you talk about that? Yeah.
Speaker 6 (23:10):
So a couple of months back, like I was with
with Caesar and so we went out of a political
function and we're just you know, chopping it up, and
he showed me, he know, he's like, look like if
he's lost day for sale, Like you're interested and I
looked at him. I saw the addresses. I was like, man,
I'm just garbage like.
Speaker 7 (23:28):
People for two seconds, because when I say lots right,
a lot of people will think, oh, you're buying a
parking lot.
Speaker 3 (23:34):
No, so I think that that goes over like they're like,
he's finding your.
Speaker 6 (23:39):
Lives basically, that's where your properties, like the house is located, exactly, Okay,
thank you.
Speaker 3 (23:43):
So he looks at him, so he's like, yeah, for
the same thing.
Speaker 6 (23:45):
But as I'm looking through, I saw there was one
address that popped up and it was two lots and
it went next to two properties that already own that
are right next to each other. So I was like, oh,
wait a minute. I was been looking for that one.
I was like, oh this was like, was like, yeah,
let me get that list. He send it over to
me and then rese out to the rotor. But I
just wanted those two. I wasn't interested interested in the
(24:06):
other ones. Yeah, So but the guy was like, now
the seller he's only willing to basically sell the whole
everything together, like he's not going to just make it
pick which ones you want, So I still push for
I was like, you know what, then I'm going boy,
you know, I try to.
Speaker 3 (24:18):
Squeeze in half of them and like putting them off
for like half. He's like, nah, he wants, he wants.
You know, you gotta buy everything.
Speaker 6 (24:23):
So I low balled them on everything, and just with
the idea, I said, you know what, I'm going to
buy everything.
Speaker 3 (24:28):
And as soon as I buy it, did the numbers
that if.
Speaker 6 (24:30):
He gives it to me at this price, I could
just throw it back up the market, just make a
few a few dollars on it. So get into the process.
I ended up going on the contract. As I'm going
on the contract, I'm started doing more research. I started
researching brand new constructions and I noticed that they were selling.
Speaker 3 (24:46):
For like three fifty three thirty three sixty And.
Speaker 6 (24:52):
I realized that they are new constructions. But these new
constructions were built in two thousand and three. Now these
will be building twenty eighteen. So I was like, waiting,
that means that these have to be worth a lot
more than so at least three seventy five. So so so
I figured, so the key is like, no number one,
you gotta know what you can you saw something for
(25:12):
so like I had to be seventy five. So now
how much am I paying for these lasts?
Speaker 3 (25:17):
On average? I was like paying like twenty five twenty
about twenty five thousand. I mean, how many left did
you buy? Twenty two? Well two twenty five thousand a piece?
Twenty thousand piece here? And there was like another like
a two family ender that they just kind of like
the win do you? How do you? How do you buy? List?
You buy any cash? Can you get like a moan
for that? Yeah? That was like a message.
Speaker 6 (25:36):
But I'm colling up like the hard money numbers that
I use, and they're like, we don't know, I'm vacant lost.
Speaker 3 (25:40):
I was like, wait, okay, I just put up.
Speaker 6 (25:44):
I just put up like twenty thousand dollars non refundable
with you. You can't know me on this, Like now
you know what you gotta put up like fifty percent.
Speaker 3 (25:51):
I was like, shit, I can't. I was like, no,
that's too much, is it?
Speaker 6 (25:53):
And I started making pocals and I start explaining to
you know, I had the conversation, I know how much
business we've done.
Speaker 3 (25:58):
We got it.
Speaker 7 (25:58):
You got some great context if I close myship really
good relationships man.
Speaker 3 (26:05):
And I'm a quiet guy, like you know, another like
a big speaker.
Speaker 6 (26:08):
But you know when it comes to like you know,
business and stuff and then get on that phone, it's like,
you know, I started, like I start.
Speaker 3 (26:11):
To transforming man like.
Speaker 6 (26:13):
Like Michael Jackson gets on stage, you know, quiet do
off stage, but on stage.
Speaker 3 (26:16):
Against the performance showtimes. So long time shot.
Speaker 6 (26:20):
I convinced them to loan me uh and they were
willing to do. You know, the London was waiting to
do twenty percent. One thing about these lots that I
picked up though, is that because they're located in urban areas,
they're located in redevelopment zones, which meant that the city
has these kind of sort of like set idea of
what you can build on these lots, and if you
(26:40):
meet the square footage and what they want, then you
don't need to go in front of a zoning board.
Speaker 3 (26:45):
You can just basically submit payment. Like to just submit
plans to the building department is just like taking out
a permit on a whole new construction.
Speaker 6 (26:54):
So that allowed me to leverage these outs. So as
soon as I closed, I was able to you know,
get with the architect and and send it all the paper.
We can already have permits on five which means I
already have the financing in place to build these five.
Speaker 4 (27:08):
What's the permits you talk about that when you spoke,
when we first spoke, you had to have the permits,
Like it's a process, right when you buy a land,
Like it's different than just buying a home.
Speaker 6 (27:17):
Right, So yeah, yeah, when you yeah, when you buy
a land, is it's more complicated because it's like banks
don't really want to loan online because what think you have?
Speaker 3 (27:23):
Just have dirt.
Speaker 6 (27:23):
Basically, you know, it's like no, no, no property, there's
no cashlow, nothing on it.
Speaker 3 (27:27):
It's just basically breaking lots.
Speaker 6 (27:28):
And in most places when you buy a lot you
have to go in front of the zone board, which
can take a year before you can start building up
these you know. Unfortunately I was able to kind of
like build right away. So now going back to like
the numbers, basically like so three seventy five and twenty
five for the lot, that puts me like a three fifty.
So now the difference between now, let's say a few
(27:49):
years back, is like the market where is that now
where it was a few years back. If we go
back like three years you built a new construction home,
you were lucky to get two fifty maybe two seventy
five for it.
Speaker 3 (27:58):
But now thinking about it, now, let's say it.
Speaker 6 (28:00):
If it costs you two twenty five to bill and
you're gonna sell it for two fifty years, you're almost
like bricking Ethan basically, or even like, you know, two
seventy five, I'm ready to make much money. So now
then you can go three seventy five. That gives an
extra whole hundred thousand, So that makes a big difference.
So that kind of changed over my mind. I said,
you know what, why am I going to not do
complete renovations when I could just basically build all these homes.
Speaker 3 (28:21):
So now instead of grabbing the lots, keeping the ones.
Speaker 6 (28:24):
That I want to send off the other ones and
saying no, I forget that, I'm gonna basically get all
these lots and I'm gonna build all of them.
Speaker 7 (28:29):
So can we go back a little bit because you
said season had a list, right, and it was twenty
two you're twenty two lots. Where does someone even see
that list? Like is that at an auction? Where are
we getting that? We have to go our kind of
clerk or something.
Speaker 6 (28:40):
No, No, that's just relationships, and it's Basically, when you're known,
you know, for making deals, deals will pop up on
your email, like you know, I get phone calls all
the time like hey listen, I got this deal, and it's.
Speaker 3 (28:51):
Like, you know it's a good deal of John Binder,
it's not a good deal, and I'll let it go.
A lot of times people tell me like, hey, you
ever let go one of those deals. You don't mind?
Then is this? It's like you don't want it because
it's like if there's a reason if I let it go,
is because it's not a good deal. Basically, if it's.
Speaker 9 (29:02):
A good deal, I'm somehow someway I'm gonna make ap
So all right, So okay, So now you're building homes, right,
So when you're building homes from scratch?
Speaker 3 (29:13):
Right, what kind of homes are you building? How do
you build a home? Who do you have? Contract? Like?
How does that happen? So? All right?
Speaker 6 (29:21):
So I mean, first of all, you know, the idea
of building something from the ground up was was scary.
Speaker 3 (29:26):
I was like I've never done it. It's like how
am I gonna do this?
Speaker 6 (29:29):
But you know, going back to that whole renovation schedule
when you map it out and you like kind of
break everything up into pieces.
Speaker 3 (29:35):
It's like when you do a.
Speaker 6 (29:37):
Complete renovation, the first thing that I basically look for,
you know, you need to cut the property.
Speaker 3 (29:42):
Once you cut the property, then you go to the framing.
You know, it's like a system.
Speaker 6 (29:46):
And from framing you go to you want to do
the plumbing, Then you do the electric you know, then
it comes the installation, it comes to driveable.
Speaker 3 (29:53):
So it's like a process of step. You just kind
of map it out step by step.
Speaker 6 (29:56):
So now if you put complete renovation one side, you
put new construction on the the other side, what's the
difference between the two.
Speaker 3 (30:02):
The only difference is that.
Speaker 6 (30:03):
On a on a car, on a new construction, you
need foundation and you need framing. Once you have foundation
and framing, pretty much what you have is like the
skeleton of a house. When you buy a house and
you do a gu renovation, that's all you left with
the skeleton of the house. So now if so I
kind of like really did the math. I was like, oh,
if I picked up the last of twenty five, how
(30:24):
much can it really cost me to do a foundation?
And I just you know, I figured, you know, what
made you know, made some phone calls just you know,
contract is giving me prices, and it's like most people say,
like forty thousand for cement up forty thousand you're just
need just the found oudation out. So it's like forty
thousand and made some other phone cause how much is
you know for the frame this thing? It came up
to price like forty thousand, like eighty so now eighty
(30:45):
plus the twenty five that's one of five. I was like,
I'm paying that right now to regulate it for like
a complete renovation.
Speaker 3 (30:51):
So and that's the worst case scenario right now.
Speaker 6 (30:54):
Being like someone who who knows how to maneuver my
way around construction, it is like those the ill probably
cut both of them down, like be half.
Speaker 3 (31:03):
How much of course, like how much more costs to
build up everything else?
Speaker 6 (31:07):
Yeah, you know right now it's gonna be my first rodeo.
So it's kind of like it's just a budget that.
Speaker 3 (31:11):
I have in my head. And my budget right now.
Speaker 6 (31:13):
Is like one seventy five and you sell that home
fow much three seventy five to.
Speaker 3 (31:17):
Make two hundred thousand. But then you know, minus the
twenty five of the line and minus the.
Speaker 6 (31:22):
Closing comes right, So let's say like one fifty, Like
ten of them is like one point five.
Speaker 3 (31:27):
So what's it? Are you selling these homes or are
you sun and all?
Speaker 6 (31:30):
Like I said, like only segning them because it's like
now my vision is to develop buildings, so I already
have the last for the buildings. I just don't have
the knowledge of building the building and I don't have
the liquid funds to get into a project like that
because it's like I have this big portfolio and net
worth is looking pretty nice. Yeah, but you know, the
cash flow is looking pretty tight because it's kind of like,
(31:52):
you know, the way I see it, once my all
my personal bills are taken care of, is like if
I have five thousand dollars in cash low in a month, Yeah,
the way I see it is like money has to
work for me. I don't work for money, so it's
kind of that money is just sitting in the back.
I just got basically five thousand dollar and lazy in
the back. So I got put into work. So I'll
look around and try to find like a property and
that I know I can hold up, Like that's five
(32:13):
thousand dollars worth of mortgages that I can hold up
on the house until I'm ready to start, you know,
working on it.
Speaker 3 (32:18):
You said money works for me. I don't work for money.
I was asking going because you told myself at all camera.
He was like net worth or what was the soul?
You said, not yet, because it's kind of like y'all
separate things you got here. You know, your asset minus
be your liabilities, which is you know, listen, we heard
that networth networth rich, but cash Oh yeah, networth. Yeah,
(32:43):
I'm networth rich but cash flow poor. Yeah.
Speaker 6 (32:45):
Yeah, I'm cool with that for now because it's like
I'm trying to build up. I'm trying to, you know,
just climb up to a certain level.
Speaker 7 (32:50):
All right, So your net worth could be thirty million, right,
but your cash flow could be three thousand, And that's okay, right,
exactly like.
Speaker 3 (32:57):
I wish I had.
Speaker 6 (32:59):
But it's basically like, yeah, like you know, it's two
different things.
Speaker 3 (33:03):
Like it's just as raptists.
Speaker 6 (33:04):
For example, like you know, people who get these large
amounts of money, they're.
Speaker 3 (33:09):
Cash bitch, right, Like they have a lot of cash
on hand, but they probably have like no net worth.
Speaker 6 (33:13):
You probably see people with like the nice cars, the
jewelry and everything, and then they riding around within net Worth. Yeah,
so then you can see someone like me. Now I'm
driving on to Yoa Tacoma. It's like I'm not studying,
but it's like the network.
Speaker 3 (33:25):
Is looking nice. Network is looking more than nice.
Speaker 7 (33:28):
What's the time frame on building from the ground up?
Speaker 6 (33:32):
That's then, you know, it's just like you don't know
when you're not familiar with something.
Speaker 3 (33:35):
In my mind, I always sat I was like a
year is gonna say to build up a house.
Speaker 6 (33:39):
Before I started doing the house, I was like six
months I'm gonna build, you know, it's going to be
the time frame.
Speaker 3 (33:43):
Now the time frame is looking like three months. So
I think like three months I could knock out house. Wow.
Speaker 6 (33:48):
And I could probably build them like two probably like
two to three weeks apart. So's you go on my Instagram.
Might now already posted two of them. I saw exactly
one already have the foundation, the other one I'm working
on the foody, and then probably like another two weeks.
One already is gonna have to frame me. The almost
gonna have the foundation, and I'm gonna be working on
the foot one. And it's like and they're gonna be
(34:08):
lined up like that.
Speaker 7 (34:09):
And you just using the same team he's time or
you're like, you know what, I'm gonna capitalize by using
different teams that.
Speaker 3 (34:14):
I trust to work on these properties.
Speaker 6 (34:16):
It's like I have my core guys that I trust
and like, I know they can handle things, and then
it's their responsibility to build up on them.
Speaker 3 (34:24):
So it's kind of like like my project manager.
Speaker 6 (34:26):
His job is to kind of like I tell him
this is what I want to do, and then he
goes out. He finds the extra help, even if it means,
you know, reaching out to a contract is to kind
of help him out.
Speaker 3 (34:37):
You know.
Speaker 6 (34:37):
It's crazy, like if I reach out to a contract
that let's just say, you might tell me fifteen thousand,
I tell him to reach out, he ends up getting
it for time, you know, because it's like the relationships
and Bason, the concept of like, hey, listen, you gotta
give in your prices.
Speaker 3 (34:49):
I need to make money off of this. But then
you know, obviously I know what's going on, and the
savings gett passed down on me. Yeah. Wow, Ladies and gentlemen.
Speaker 4 (34:58):
Once again, free education, right, that's a good thing about
the show.
Speaker 3 (35:04):
Instead, it's all.
Speaker 4 (35:05):
Free and all of our guests are willing to provide
information because you didn't have to, you know, tell people
what you're doing, like you could just be selfish.
Speaker 3 (35:16):
Yeah, like I mean, I'll say this much is like
going on.
Speaker 6 (35:18):
When she's did the first seminar and he tells me,
I don't want to do a seminar, I was like, oh,
that's cool, Like I remember we spoke about doing like
little seminars.
Speaker 3 (35:26):
But in churches, it's gonna get back to the community.
Speaker 6 (35:30):
Like and I see every time I see like, you know,
a pastor, I've talked to the laylists.
Speaker 3 (35:33):
You know, I'll do real estate. You want me to
go to speak to your congregation that it's like, let
me know, I'll come through and i'll speak. You know,
nobody's everybody, you know what I mean.
Speaker 6 (35:43):
But it's kind of like maybe now you know, start
getting phone calls and stuff.
Speaker 3 (35:46):
But you know, but so I thought that's what's gonna
be here, Like.
Speaker 6 (35:49):
Nah, we're gonna do like these seminars, you know, Like
I was like, we don't, you know, why.
Speaker 3 (35:55):
Why do this?
Speaker 6 (35:56):
But then when I went to the first seminary, I
was mind, you I was supposed to speak at the
first seven or and it's like When I get that,
I was like, oh no, I can't speak, man, It's
like I'm not public speakers. I was like, nah, but
looking at the crowd, when I seen the crowd, seem
like everybody's like from the you know, the first one
was the past, and I've seen a lot of people
that I know and and it just.
Speaker 3 (36:12):
Kind of hit me and I'm like, you know what, man,
that was me ten fifteen years ago.
Speaker 6 (36:15):
I knew nothing and I needed it, like somebody to
kind of just not help me out, like giving me
a hand, but just kind of like guiding me like
some of this is you know, this is the direction,
and it's kind of like and we came from nothing.
So it's like I feel like when they see us,
you know, they're not seeing these guys in these fantacyes too,
they seeing themselves. So they're saying like, you know what
if you know, if like if they did it, they
put it, they way to put into work, and you know.
Speaker 3 (36:35):
Look with there are now le meanes, I can do it.
Speaker 6 (36:36):
So I feel like I felt I felt bad like
that I didn't speak.
Speaker 3 (36:40):
I felt bad like yeah, you know what, I let my.
Speaker 6 (36:42):
Fear, you know, stop me from going up there like,
and these people it's kind of like they need like
that motivation, you.
Speaker 3 (36:47):
Know what I'm saying. They need that information. So that
motivated me to kind.
Speaker 6 (36:50):
Of like, you know, you know, to push through and
then I should speak on stage. And I feel like
it is like a responsibility for you know, for people
like us that we are at.
Speaker 3 (37:00):
A at a certain you know, certain.
Speaker 6 (37:02):
Level where we have like this knowledge of this information
and it's kind of like we could keep it. But
it's like, you know, it's Tiger Woods right now, showed
you how to play golf, Michael Jordan showed you how
to play basketball.
Speaker 3 (37:12):
That's not gonna then.
Speaker 6 (37:13):
They're like exactly, I mean, they're still gonna be who
they are. So I feel like, if you know, if
I go out here and I tell you everything that
I do, how I do it, you still want to
regardless regardless. I mean, I'll tell you this right now, man,
like I actuldly like start today and just with these
last that I have, with these uh, these plans that
have with the buildings, I'm.
Speaker 3 (37:29):
Gonna stay busy for the next five years.
Speaker 6 (37:31):
And all my crew, everybody that works for me, they're
gonna stay busy for the next five years, so we're
all gonna eat.
Speaker 3 (37:36):
So it's kind of like, you know, why why I
try to keep that information. It's kind of like, you know,
I don't need to bring you down, so I could elevate,
you know what I mean.
Speaker 6 (37:43):
It's like I could elevate myself and it bring you up,
and it's like and I'll still be up to.
Speaker 3 (37:46):
Everybody needs Yeah, everybody needs everybody. Let make sure.
Speaker 6 (37:52):
My graduates from my school being forced bad drop drop,
Mike drop bad drop.
Speaker 3 (38:00):
Hi, you.
Speaker 1 (38:11):
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