Rise Into Your Purpose: Building Wealth, Courage, and a New Future with Chase Louderback

[0:03] Welcome back to the REI Agent. We have a Welcome back to the REI Agent. We have a Welcome back to the REI Agent. We have a special episode. Uh we have Chase Ladder special episode. Uh we have Chase Ladder special episode. Uh we have Chase Ladder back with us again. I was about to say back with us again. I was about to say back with us again. I was about to say back with us and that would have been a back with us and that would have been a back with us and that would have been a little bit awkward. Chase Ladderback little bit awkward. Chase Ladderback little bit awkward. Chase Ladderback back with us. back with us. back with us. Uh but Chase Chase was a guest early on Uh but Chase Chase was a guest early on Uh but Chase Chase was a guest early on uh back when we were still under the uh back when we were still under the uh back when we were still under the wealthy investor brand and uh we talked wealthy investor brand and uh we talked wealthy investor brand and uh we talked about uh mainly about syndications. Uh about uh mainly about syndications. Uh about uh mainly about syndications. Uh you’re involved with mobile home park

[0:26] you’re involved with mobile home park you’re involved with mobile home park syndications. Uh and we got into your syndications. Uh and we got into your syndications. Uh and we got into your story. Um, so definitely a good episode story. Um, so definitely a good episode story. Um, so definitely a good episode to listen to. We wanted to take things a to listen to. We wanted to take things a to listen to. We wanted to take things a little bit differently this time. Uh, we little bit differently this time. Uh, we little bit differently this time. Uh, we wanted to talk a little bit about, you wanted to talk a little bit about, you wanted to talk a little bit about, you know, your experience and kind of how we know, your experience and kind of how we know, your experience and kind of how we met and how we kind of got together, but met and how we kind of got together, but met and how we kind of got together, but also wanted to just maybe give some also wanted to just maybe give some also wanted to just maybe give some advice to somebody, pretend that there’s advice to somebody, pretend that there’s

[0:44] advice to somebody, pretend that there’s somebody here talking to us that we somebody here talking to us that we somebody here talking to us that we wanted to give advice to about how to wanted to give advice to about how to wanted to give advice to about how to kind of get started in real estate, uh, kind of get started in real estate, uh, kind of get started in real estate, uh, in investing and in um, a sales agent. in investing and in um, a sales agent. in investing and in um, a sales agent. So, uh, when we were when we got So, uh, when we were when we got So, uh, when we were when we got together, I’ll just quickly say that we, together, I’ll just quickly say that we, together, I’ll just quickly say that we, uh, we were in, uh, we we hosted a real uh, we were in, uh, we we hosted a real uh, we were in, uh, we we hosted a real estate meetup, um, real estate investing estate meetup, um, real estate investing estate meetup, um, real estate investing group. And in that meetup, we kind of group. And in that meetup, we kind of group. And in that meetup, we kind of always just said that, you know, hey,

[1:07] always just said that, you know, hey, always just said that, you know, hey, we’re both agents. Um, I’m a little bit we’re both agents. Um, I’m a little bit we’re both agents. Um, I’m a little bit heavier on the agent side and Chase is a heavier on the agent side and Chase is a heavier on the agent side and Chase is a little bit heavier on the investing little bit heavier on the investing little bit heavier on the investing side. Um, but maybe we can get started side. Um, but maybe we can get started side. Um, but maybe we can get started with how you kind of got into the real with how you kind of got into the real with how you kind of got into the real estate world. um just give us a quick estate world. um just give us a quick estate world. um just give us a quick version of you know your first deal when version of you know your first deal when version of you know your first deal when you know you were in college right you you know you were in college right you you know you were in college right you want to give us that and then kind of want to give us that and then kind of want to give us that and then kind of how you ended up being a real estate

[1:28] how you ended up being a real estate how you ended up being a real estate agent or or getting to that that point. agent or or getting to that that point. agent or or getting to that that point. >> Yeah. So the I guess do you want me to >> Yeah. So the I guess do you want me to >> Yeah. So the I guess do you want me to go all the way from there to like what go all the way from there to like what go all the way from there to like what I’m doing now or just I’m doing now or just I’m doing now or just >> Yeah. Just until you got to be a real >> Yeah. Just until you got to be a real >> Yeah. Just until you got to be a real estate agent. estate agent. estate agent. >> Yeah. So, uh, when I became an agent, I >> Yeah. So, uh, when I became an agent, I >> Yeah. So, uh, when I became an agent, I had basically bought my first rental had basically bought my first rental had basically bought my first rental property in college and, uh, renovated property in college and, uh, renovated property in college and, uh, renovated it and then rented it out for a year.

[1:48] it and then rented it out for a year. it and then rented it out for a year. And then by the time I graduated And then by the time I graduated And then by the time I graduated college, I sold it. And so, I was college, I sold it. And so, I was college, I sold it. And so, I was looking at either going to get a looking at either going to get a looking at either going to get a doctorate or like some form of master’s doctorate or like some form of master’s doctorate or like some form of master’s degree and saw the money that I made degree and saw the money that I made degree and saw the money that I made from that um, and decided to go into from that um, and decided to go into from that um, and decided to go into real estate full-time. So, that was real estate full-time. So, that was real estate full-time. So, that was rough. I definitely I don’t think I rough. I definitely I don’t think I rough. I definitely I don’t think I would do that again the the way I did would do that again the the way I did would do that again the the way I did that because I just like you know had that because I just like you know had

[2:09] that because I just like you know had one lump check and then I was literally one lump check and then I was literally one lump check and then I was literally just trying to find deals. Um I wasn’t just trying to find deals. Um I wasn’t just trying to find deals. Um I wasn’t licensed or anything at that point. So licensed or anything at that point. So licensed or anything at that point. So um I had like two projects where I was um I had like two projects where I was um I had like two projects where I was doing a lot of the work myself um as doing a lot of the work myself um as doing a lot of the work myself um as soon as I got out of college. And then soon as I got out of college. And then soon as I got out of college. And then one of the one of the hurdles I ran into one of the one of the hurdles I ran into one of the one of the hurdles I ran into was you know if a good deal comes on the was you know if a good deal comes on the was you know if a good deal comes on the market even back then this was like you market even back then this was like you market even back then this was like you know mid 201s like 2014 2015 um you

[2:32] know mid 201s like 2014 2015 um you know mid 201s like 2014 2015 um you still needed to be really quick. So uh I still needed to be really quick. So uh I still needed to be really quick. So uh I was beholden to somebody else to like go was beholden to somebody else to like go was beholden to somebody else to like go out and write the contract docs whereas out and write the contract docs whereas out and write the contract docs whereas I was like one I may as well get paid I was like one I may as well get paid I was like one I may as well get paid for it and then two I can control that for it and then two I can control that for it and then two I can control that process a lot better. Um and then in process a lot better. Um and then in process a lot better. Um and then in some some situations I kind of you know some some situations I kind of you know some some situations I kind of you know use that as leverage to also give up my use that as leverage to also give up my use that as leverage to also give up my commission. So it was like threefold of commission. So it was like threefold of commission. So it was like threefold of Yeah.

[2:52] Yeah. Yeah. >> Why you got your license or why you went >> Why you got your license or why you went >> Why you got your license or why you went into that? into that? into that? >> How long were you investing on your own >> How long were you investing on your own >> How long were you investing on your own before you you were licensed? I don’t before you you were licensed? I don’t before you you were licensed? I don’t remember that part. remember that part. remember that part. >> It was a few years. It’s been a while >> It was a few years. It’s been a while >> It was a few years. It’s been a while now, so it’s a little foggy, but it’s now, so it’s a little foggy, but it’s now, so it’s a little foggy, but it’s like two to three years.

[3:04] like two to three years. like two to three years. >> He blocks that out of his memory. >> He blocks that out of his memory. >> He blocks that out of his memory. >> Yeah. So, um yeah, I was it was at least >> Yeah. So, um yeah, I was it was at least >> Yeah. So, um yeah, I was it was at least two to three years where I was like, I two to three years where I was like, I two to three years where I was like, I may as well go ahead and get it. may as well go ahead and get it. may as well go ahead and get it. >> Yeah. Yeah. So, um, at one point our our >> Yeah. Yeah. So, um, at one point our our >> Yeah. Yeah. So, um, at one point our our office bought your office or our office bought your office or our office bought your office or our brokerage kind of merged with your brokerage kind of merged with your brokerage kind of merged with your brokerage. Um, and we kind of were both brokerage. Um, and we kind of were both brokerage. Um, and we kind of were both doing some version of a real estate doing some version of a real estate doing some version of a real estate investing club. Uh, you had probably a

[3:27] investing club. Uh, you had probably a investing club. Uh, you had probably a more traditional version. I didn’t more traditional version. I didn’t more traditional version. I didn’t really know what I was doing. I was really know what I was doing. I was really know what I was doing. I was like, let’s just uh get together, drink like, let’s just uh get together, drink like, let’s just uh get together, drink beer, and talk about real estate. beer, and talk about real estate. beer, and talk about real estate. [laughter] [laughter] [laughter] But, but it was a great uh merger at But, but it was a great uh merger at But, but it was a great uh merger at that time. Um we we’ve done a few things that time. Um we we’ve done a few things that time. Um we we’ve done a few things together as well um over the years uh together as well um over the years uh together as well um over the years uh partnered on on different things. So uh partnered on on different things. So uh partnered on on different things. So uh we’ve gotten to know each other well. Um we’ve gotten to know each other well. Um we’ve gotten to know each other well. Um and again we always had that kind of

[3:47] and again we always had that kind of and again we always had that kind of dynamic where I was still you know dynamic where I was still you know dynamic where I was still you know mainly in the real estate sales size and mainly in the real estate sales size and mainly in the real estate sales size and side and even in your like peak of real side and even in your like peak of real side and even in your like peak of real estate sales. You were still you know estate sales. You were still you know estate sales. You were still you know more focused on the real estate more focused on the real estate more focused on the real estate investing side of things, right? investing side of things, right? investing side of things, right? >> Yeah. I mean you compared to sales >> Yeah. I mean you compared to sales >> Yeah. I mean you compared to sales versus me was like not in the versus me was like not in the versus me was like not in the [clears throat] same world. So yeah.

[4:04] [clears throat] same world. So yeah. [clears throat] same world. So yeah. Well, yeah. I mean, it was always like I Well, yeah. I mean, it was always like I Well, yeah. I mean, it was always like I mean, your your primary goal was always mean, your your primary goal was always mean, your your primary goal was always like to be Yeah. going in there with the like to be Yeah. going in there with the like to be Yeah. going in there with the with investing. You’ve talked about um with investing. You’ve talked about um with investing. You’ve talked about um how you’ve kind of always had a like how you’ve kind of always had a like how you’ve kind of always had a like almost two channels of things that almost two channels of things that almost two channels of things that you’ve done and and how maybe it’s not you’ve done and and how maybe it’s not you’ve done and and how maybe it’s not something that you would necessarily something that you would necessarily something that you would necessarily advise on. Um so maybe we can start advise on. Um so maybe we can start advise on. Um so maybe we can start there, then we can maybe get into like

[4:24] there, then we can maybe get into like there, then we can maybe get into like kind of how we suggest somebody get kind of how we suggest somebody get kind of how we suggest somebody get started. But yeah, you want to talk a started. But yeah, you want to talk a started. But yeah, you want to talk a little bit about that how you’ve kind of little bit about that how you’ve kind of little bit about that how you’ve kind of always had two paths. Yeah, I mean we always had two paths. Yeah, I mean we always had two paths. Yeah, I mean we were we were chatting a little bit were we were chatting a little bit were we were chatting a little bit before this about um the I think one of before this about um the I think one of before this about um the I think one of I’ I’ve got some good strengths that I’ I’ve got some good strengths that I’ I’ve got some good strengths that really helped with my growth, but then really helped with my growth, but then really helped with my growth, but then some things that like if I go back I some things that like if I go back I some things that like if I go back I could I think I compress the timeline

[4:42] could I think I compress the timeline could I think I compress the timeline and and do a lot more now. Um one of and and do a lot more now. Um one of and and do a lot more now. Um one of those was uh the two pass which was those was uh the two pass which was those was uh the two pass which was basically like splitting your focus. We basically like splitting your focus. We basically like splitting your focus. We you know it felt like that was safer to you know it felt like that was safer to you know it felt like that was safer to do you know diversify. Um I I always had do you know diversify. Um I I always had do you know diversify. Um I I always had two things that I’ I’d wanted to do. So two things that I’ I’d wanted to do. So two things that I’ I’d wanted to do. So when I was um you know doing the when I was um you know doing the when I was um you know doing the investing side, I was an agent at a investing side, I was an agent at a investing side, I was an agent at a point. I had like a W2 job and I was point. I had like a W2 job and I was point. I had like a W2 job and I was investing. So I was like doing shifts

[5:07] investing. So I was like doing shifts investing. So I was like doing shifts and then as soon as I got off going by and then as soon as I got off going by and then as soon as I got off going by the projects and meeting contractors and the projects and meeting contractors and the projects and meeting contractors and different things. Um I started I was different things. Um I started I was different things. Um I started I was doing and so then I had flips and got doing and so then I had flips and got doing and so then I had flips and got into the commercial. So I was I still into the commercial. So I was I still into the commercial. So I was I still occasionally even do some flips. Just occasionally even do some flips. Just occasionally even do some flips. Just did a new build this year even when did a new build this year even when did a new build this year even when we’re doing syndication. So, I’ve just we’re doing syndication. So, I’ve just we’re doing syndication. So, I’ve just seen that and I try to stop myself from seen that and I try to stop myself from seen that and I try to stop myself from doing it still where um I I focus on one

[5:29] doing it still where um I I focus on one doing it still where um I I focus on one main thing as opposed to, you know, main thing as opposed to, you know, main thing as opposed to, you know, having a bunch of different side having a bunch of different side having a bunch of different side projects because you end up just making projects because you end up just making projects because you end up just making a lot less and it taking way more of a lot less and it taking way more of a lot less and it taking way more of your time. your time. your time. >> Mhm. >> Mhm. >> Mhm. >> Um yeah, and the other the other big >> Um yeah, and the other the other big >> Um yeah, and the other the other big thing too was it as I was going through thing too was it as I was going through thing too was it as I was going through the process, I kind of overestimated the process, I kind of overestimated the process, I kind of overestimated what was possible. So, it was a bit of a what was possible. So, it was a bit of a what was possible. So, it was a bit of a mindset thing where um you know, I

[5:48] mindset thing where um you know, I mindset thing where um you know, I didn’t think one agents made a lot of didn’t think one agents made a lot of didn’t think one agents made a lot of money um where where I was. Um so, I money um where where I was. Um so, I money um where where I was. Um so, I didn’t think it was worth pursuing that. didn’t think it was worth pursuing that. didn’t think it was worth pursuing that. Um and so that just kind of carries over Um and so that just kind of carries over Um and so that just kind of carries over into different projects. So, like, oh, I into different projects. So, like, oh, I into different projects. So, like, oh, I thought you need to be this experience thought you need to be this experience thought you need to be this experience to buy this big of a deal.

[6:03] to buy this big of a deal. to buy this big of a deal. >> I thought I needed to have this in order >> I thought I needed to have this in order >> I thought I needed to have this in order to do that. And so, like I kind of held to do that. And so, like I kind of held to do that. And so, like I kind of held myself back in some ways. myself back in some ways. myself back in some ways. >> Sure. Um, and uh, those are probably the >> Sure. Um, and uh, those are probably the >> Sure. Um, and uh, those are probably the two biggest. My my only real strength I two biggest. My my only real strength I two biggest. My my only real strength I think is that I just have a strong think is that I just have a strong think is that I just have a strong willingness to learn and that I just am willingness to learn and that I just am willingness to learn and that I just am persistent. I don’t think I’m persistent. I don’t think I’m persistent. I don’t think I’m exceptionally intelligent or anything exceptionally intelligent or anything exceptionally intelligent or anything like that and that, you know, I just

[6:23] like that and that, you know, I just like that and that, you know, I just kept going at it until I kind of hit kept going at it until I kind of hit kept going at it until I kind of hit what my goals were. what my goals were. what my goals were. >> Yeah. I mean, you you get after it. >> Yeah. I mean, you you get after it. >> Yeah. I mean, you you get after it. [laughter] I mean, for sure. I mean, [laughter] I mean, for sure. I mean, [laughter] I mean, for sure. I mean, you’ve accomplished a ton. uh even if you’ve accomplished a ton. uh even if you’ve accomplished a ton. uh even if you feel like your your your journey you feel like your your your journey you feel like your your your journey wasn’t uh perfectly linear, um you wasn’t uh perfectly linear, um you wasn’t uh perfectly linear, um you definitely accomplished a ton and it’s definitely accomplished a ton and it’s definitely accomplished a ton and it’s it’s awesome to see and I thought that it’s awesome to see and I thought that it’s awesome to see and I thought that this would be a great opportunity to this would be a great opportunity to

[6:42] this would be a great opportunity to kind of talk to two people um or if kind of talk to two people um or if kind of talk to two people um or if we’re pretending to talk to one person, we’re pretending to talk to one person, we’re pretending to talk to one person, two people talking to them about how um two people talking to them about how um two people talking to them about how um a journey in the real estate world could a journey in the real estate world could a journey in the real estate world could go. and and you know we we both had go. and and you know we we both had go. and and you know we we both had maybe circumstances that would have you maybe circumstances that would have you maybe circumstances that would have you know for me at the beginning when I know for me at the beginning when I know for me at the beginning when I started I was doing a full-time job and started I was doing a full-time job and started I was doing a full-time job and real estate sales uh but our main focus real estate sales uh but our main focus real estate sales uh but our main focus was paying off student loans and so like

[7:06] was paying off student loans and so like was paying off student loans and so like that to us at the time was more that to us at the time was more that to us at the time was more important than having the real estate important than having the real estate important than having the real estate sales career take off as quickly as it sales career take off as quickly as it sales career take off as quickly as it could. Uh so taking the pay hit uh to do could. Uh so taking the pay hit uh to do could. Uh so taking the pay hit uh to do just full-time sales while that was just full-time sales while that was just full-time sales while that was building um wasn’t didn’t make sense building um wasn’t didn’t make sense building um wasn’t didn’t make sense with what our goals were. But um I guess with what our goals were. But um I guess with what our goals were. But um I guess if we were going to start uh by, you if we were going to start uh by, you if we were going to start uh by, you know, advising somebody looking like, know, advising somebody looking like, know, advising somebody looking like, you know, somebody just came to us and

[7:29] you know, somebody just came to us and you know, somebody just came to us and they’re like, I listen to a podcast. I they’re like, I listen to a podcast. I they’re like, I listen to a podcast. I want to get into real estate. I’m super want to get into real estate. I’m super want to get into real estate. I’m super fired up. What do I do? What do I start fired up. What do I do? What do I start fired up. What do I do? What do I start with? I think one of the the the two with? I think one of the the the two with? I think one of the the the two paths you have to kind of choose, you paths you have to kind of choose, you paths you have to kind of choose, you don’t have to u but I think it probably don’t have to u but I think it probably don’t have to u but I think it probably makes sense and and in the purpose of makes sense and and in the purpose of makes sense and and in the purpose of our conversation, we’ll we’ll just split our conversation, we’ll we’ll just split our conversation, we’ll we’ll just split it up. Um it’s kind of going the agent it up. Um it’s kind of going the agent it up. Um it’s kind of going the agent route um for having kind of like a an

[7:48] route um for having kind of like a an route um for having kind of like a an active income if you will um versus uh active income if you will um versus uh active income if you will um versus uh going the wholesale route where uh going the wholesale route where uh going the wholesale route where uh people are hunting for for deals off people are hunting for for deals off people are hunting for for deals off market and then uh you know selling market and then uh you know selling market and then uh you know selling those contracts to an investor. And I those contracts to an investor. And I those contracts to an investor. And I think those are maybe the most usual think those are maybe the most usual think those are maybe the most usual places people start. Yeah. To to kind of places people start. Yeah. To to kind of places people start. Yeah. To to kind of have an earned income. Um, and I won’t have an earned income. Um, and I won’t have an earned income. Um, and I won’t get into that too much. I think it’s get into that too much. I think it’s get into that too much. I think it’s it’s it’s tricky. It can be trickier to

[8:12] it’s it’s tricky. It can be trickier to it’s it’s tricky. It can be trickier to do both real estate, residential sales, do both real estate, residential sales, do both real estate, residential sales, and wholesaling. So, we’re just going to and wholesaling. So, we’re just going to and wholesaling. So, we’re just going to leave the wholesaling. I have other leave the wholesaling. I have other leave the wholesaling. I have other episodes about that, other people that episodes about that, other people that episodes about that, other people that do wholesaling. Just going to leave that do wholesaling. Just going to leave that do wholesaling. Just going to leave that out of this conversation and and we can out of this conversation and and we can out of this conversation and and we can just kind of come at it from a lens of just kind of come at it from a lens of just kind of come at it from a lens of uh being a real estate agent and uh uh being a real estate agent and uh uh being a real estate agent and uh wanting to start investing. Um, so like wanting to start investing. Um, so like wanting to start investing. Um, so like again, what would you what would you say

[8:31] again, what would you what would you say again, what would you what would you say would be like kind of a good place to would be like kind of a good place to would be like kind of a good place to start for somebody like that? start for somebody like that? start for somebody like that? >> Yeah, I think [clears throat] I think it >> Yeah, I think [clears throat] I think it >> Yeah, I think [clears throat] I think it cuz even a a step back is like there’s cuz even a a step back is like there’s cuz even a a step back is like there’s two options is you’re going the you know two options is you’re going the you know two options is you’re going the you know that you want to be an operator and an that you want to be an operator and an that you want to be an operator and an active investor then you know those are active investor then you know those are active investor then you know those are kind of where a lot of people get kind of where a lot of people get kind of where a lot of people get started. If you want to be passive and started. If you want to be passive and started. If you want to be passive and you’ve got a lot to start with and some

[8:47] you’ve got a lot to start with and some you’ve got a lot to start with and some people do you’ve talked about in the people do you’ve talked about in the people do you’ve talked about in the other episodes where you passively other episodes where you passively other episodes where you passively invest as an LP in a syndication um you invest as an LP in a syndication um you invest as an LP in a syndication um you can do notes and different things like can do notes and different things like can do notes and different things like that too. So, there’s some other routes that too. So, there’s some other routes that too. So, there’s some other routes if you’re just like, “Hey, I don’t want if you’re just like, “Hey, I don’t want if you’re just like, “Hey, I don’t want to touch real estate, but I want to get to touch real estate, but I want to get to touch real estate, but I want to get some of the benefits of it.” Um, if you some of the benefits of it.” Um, if you some of the benefits of it.” Um, if you know that you’re going to be an know that you’re going to be an know that you’re going to be an operator, which I did. I want to be

[9:01] operator, which I did. I want to be operator, which I did. I want to be hands-on. I like the creative aspects of hands-on. I like the creative aspects of hands-on. I like the creative aspects of it. Um, yeah, wholesaling or or being an it. Um, yeah, wholesaling or or being an it. Um, yeah, wholesaling or or being an agent is, you know, the probably the agent is, you know, the probably the agent is, you know, the probably the best ways to get to get in touch with best ways to get to get in touch with best ways to get to get in touch with it. I I’m kind of like you. I just I it. I I’m kind of like you. I just I it. I I’m kind of like you. I just I think I’ve in my career wholesaliled two think I’ve in my career wholesaliled two think I’ve in my career wholesaliled two deals. Like, I don’t I I I personally deals. Like, I don’t I I I personally deals. Like, I don’t I I I personally had a problem with it where I was like, had a problem with it where I was like, had a problem with it where I was like, if I put this under contract, I’m going if I put this under contract, I’m going if I put this under contract, I’m going to be the buyer. So, um,

[9:24] to be the buyer. So, um, to be the buyer. So, um, >> yeah, >> yeah, >> yeah, >> it’s it’s very tough for me to recommend >> it’s it’s very tough for me to recommend >> it’s it’s very tough for me to recommend somebody new to do that because if I somebody new to do that because if I somebody new to do that because if I started over, I wouldn’t do that. I started over, I wouldn’t do that. I started over, I wouldn’t do that. I would I mean, maybe I would try to would I mean, maybe I would try to would I mean, maybe I would try to wholesale some commercial real estate wholesale some commercial real estate wholesale some commercial real estate where it makes some sense, but um, if where it makes some sense, but um, if where it makes some sense, but um, if you’re starting from scratch, you don’t you’re starting from scratch, you don’t you’re starting from scratch, you don’t have that knowledge, like it’s very have that knowledge, like it’s very have that knowledge, like it’s very difficult to do.

[9:40] difficult to do. difficult to do. >> Yeah. >> Yeah. >> Yeah. >> Um, so I think an agent’s a great way to >> Um, so I think an agent’s a great way to >> Um, so I think an agent’s a great way to to get exposed to real estate um, and to get exposed to real estate um, and to get exposed to real estate um, and just kind of learn and make an income just kind of learn and make an income just kind of learn and make an income while you’re doing it. while you’re doing it. while you’re doing it. >> Yeah. Yeah. And I think uh you know if >> Yeah. Yeah. And I think uh you know if >> Yeah. Yeah. And I think uh you know if if it’s possible when you’re first if it’s possible when you’re first if it’s possible when you’re first starting out to get in with another starting out to get in with another starting out to get in with another experienced agent um somebody that’s experienced agent um somebody that’s experienced agent um somebody that’s successful in the business um and you successful in the business um and you successful in the business um and you know if you could get a full-time job

[10:03] know if you could get a full-time job know if you could get a full-time job with them you know being their assistant with them you know being their assistant with them you know being their assistant being their transaction coordinator being their transaction coordinator being their transaction coordinator something um that is probably the most something um that is probably the most something um that is probably the most ideal. um like if you need some kind of ideal. um like if you need some kind of ideal. um like if you need some kind of income to kind of keep you going um you income to kind of keep you going um you income to kind of keep you going um you know it may not you may not be the know it may not you may not be the know it may not you may not be the making a ton of money right away when making a ton of money right away when making a ton of money right away when you start as an agent. So I think that you start as an agent. So I think that you start as an agent. So I think that that could be an ideal scenario. Um we that could be an ideal scenario. Um we that could be an ideal scenario. Um we had talked about doing one thing uh or

[10:24] had talked about doing one thing uh or had talked about doing one thing uh or or focusing on one thing or or your or focusing on one thing or or your or focusing on one thing or or your advice would be to you know do that. Um advice would be to you know do that. Um advice would be to you know do that. Um I think it can be a little bit hard if I think it can be a little bit hard if I think it can be a little bit hard if you want to get uh your first investment you want to get uh your first investment you want to get uh your first investment property which the easiest way is to to property which the easiest way is to to property which the easiest way is to to buy a house you’re going to live in, buy a house you’re going to live in, buy a house you’re going to live in, right? I mean, that’s the easiest way to right? I mean, that’s the easiest way to right? I mean, that’s the easiest way to get your first property. And if you get your first property. And if you get your first property. And if you don’t have a W2 and you just started don’t have a W2 and you just started don’t have a W2 and you just started selling real estate as a real estate

[10:44] selling real estate as a real estate selling real estate as a real estate agent, um you’re going to have a very agent, um you’re going to have a very agent, um you’re going to have a very hard time, even if you’re making good hard time, even if you’re making good hard time, even if you’re making good money, to qualify for a loan. Um they money, to qualify for a loan. Um they money, to qualify for a loan. Um they typically want you to have two years of typically want you to have two years of typically want you to have two years of uh experience tax returns uh to be able uh experience tax returns uh to be able uh experience tax returns uh to be able to qualify. I know of a couple places to qualify. I know of a couple places to qualify. I know of a couple places now that I’ve heard that you can have now that I’ve heard that you can have now that I’ve heard that you can have one year. Um so there’s possibilities one year. Um so there’s possibilities one year. Um so there’s possibilities for alternatives to what I’m saying, but for alternatives to what I’m saying, but for alternatives to what I’m saying, but for the the general rules, you need two

[11:05] for the the general rules, you need two for the the general rules, you need two years. Yeah. Um, so one of the thoughts years. Yeah. Um, so one of the thoughts years. Yeah. Um, so one of the thoughts I had was like, wouldn’t it make sense I had was like, wouldn’t it make sense I had was like, wouldn’t it make sense for somebody to essentially keep their for somebody to essentially keep their for somebody to essentially keep their job for a little bit, uh, sell real job for a little bit, uh, sell real job for a little bit, uh, sell real estate on the side, save up some money, estate on the side, save up some money, estate on the side, save up some money, buy the first house that they they want buy the first house that they they want buy the first house that they they want to turn into a rental? Ideally, a house to turn into a rental? Ideally, a house to turn into a rental? Ideally, a house that they could also have either people that they could also have either people that they could also have either people share or, you know, live in rooms, rent share or, you know, live in rooms, rent

[11:24] share or, you know, live in rooms, rent out rooms, um, or being a multif family, out rooms, um, or being a multif family, out rooms, um, or being a multif family, you know, quadruplex, triplex, duplex, you know, quadruplex, triplex, duplex, you know, quadruplex, triplex, duplex, uh, that somebody could live in the uh, that somebody could live in the uh, that somebody could live in the other ones and kind of earn, uh, the other ones and kind of earn, uh, the other ones and kind of earn, uh, the rent, cover the mortgage, live for free rent, cover the mortgage, live for free rent, cover the mortgage, live for free at least, um, while they are saving up at least, um, while they are saving up at least, um, while they are saving up for the next one. Um, what are what are for the next one. Um, what are what are for the next one. Um, what are what are there some other angles of I guess we there some other angles of I guess we there some other angles of I guess we can just term it house hacking that you can just term it house hacking that you can just term it house hacking that you think somebody could think about um if

[11:47] think somebody could think about um if think somebody could think about um if they’re trying to get their kind of they’re trying to get their kind of they’re trying to get their kind of first property getting started? first property getting started? first property getting started? >> Yeah. Um before like before kind of >> Yeah. Um before like before kind of >> Yeah. Um before like before kind of touching on that I think too there’s you touching on that I think too there’s you touching on that I think too there’s you know it depends what your goals are. So know it depends what your goals are. So know it depends what your goals are. So like if I was starting over I like some like if I was starting over I like some like if I was starting over I like some of the the commercial real estate and um of the the commercial real estate and um of the the commercial real estate and um development side of it. So you could you development side of it. So you could you development side of it. So you could you could go work for a development company could go work for a development company

[12:05] could go work for a development company or something instead as well. or something instead as well. or something instead as well. >> Yeah. Um, so really the the benefit of >> Yeah. Um, so really the the benefit of >> Yeah. Um, so really the the benefit of being an agent is like you get to being an agent is like you get to being an agent is like you get to control what you make to an extent. You control what you make to an extent. You control what you make to an extent. You can hustle and work harder whereas your can hustle and work harder whereas your can hustle and work harder whereas your salary job, you know, you don’t have salary job, you know, you don’t have salary job, you know, you don’t have that, that, that, >> right?

[12:17] >> right? >> right? >> Um, but if if that’s, you know, there >> Um, but if if that’s, you know, there >> Um, but if if that’s, you know, there are a lot of agents that don’t really are a lot of agents that don’t really are a lot of agents that don’t really look into the real estate investment look into the real estate investment look into the real estate investment side. So if your goal is to do something side. So if your goal is to do something side. So if your goal is to do something else, then you should try to find a like else, then you should try to find a like else, then you should try to find a like someone you can work for that is as someone you can work for that is as someone you can work for that is as closely aligned with what that goal is.

[12:32] closely aligned with what that goal is. closely aligned with what that goal is. >> Yeah. So for for you um the endgame >> Yeah. So for for you um the endgame >> Yeah. So for for you um the endgame would have been something more in the would have been something more in the would have been something more in the commercial like kind of investing space commercial like kind of investing space commercial like kind of investing space not necessarily being an agent. Uh so not necessarily being an agent. Uh so not necessarily being an agent. Uh so the experience you would gain from uh the experience you would gain from uh the experience you would gain from uh being getting a job in that kind of being getting a job in that kind of being getting a job in that kind of realm would have been more beneficial to realm would have been more beneficial to realm would have been more beneficial to you.

[12:49] you. you. >> Yeah. >> Yeah. >> Yeah. >> To have that W2 to qualify for the first >> To have that W2 to qualify for the first >> To have that W2 to qualify for the first house. That makes sense. Yeah. house. That makes sense. Yeah. house. That makes sense. Yeah. >> Or or like in that situation, let’s say >> Or or like in that situation, let’s say >> Or or like in that situation, let’s say you want to get into commercial, you you want to get into commercial, you you want to get into commercial, you were talking about wholesaling to like were talking about wholesaling to like were talking about wholesaling to like you could do that or be a commercial you could do that or be a commercial you could do that or be a commercial agent. there’s like there there are agent. there’s like there there are agent. there’s like there there are brokers in the space that make still way brokers in the space that make still way brokers in the space that make still way more annually than um uh you know net more annually than um uh you know net more annually than um uh you know net income than we do as operators and we’re

[13:09] income than we do as operators and we’re income than we do as operators and we’re at a pretty decent size scale now. So uh at a pretty decent size scale now. So uh at a pretty decent size scale now. So uh I do think house hacking is a great way I do think house hacking is a great way I do think house hacking is a great way to get into it though. Um it’s talked to get into it though. Um it’s talked to get into it though. Um it’s talked about a lot, but about a lot, but about a lot, but >> yeah, >> yeah, >> yeah, >> the fact >> the fact >> the fact >> I mean it works. >> I mean it works. >> I mean it works. >> It Yeah, it works. And it’s just like >> It Yeah, it works. And it’s just like >> It Yeah, it works. And it’s just like now there there’s a lot more technology now there there’s a lot more technology now there there’s a lot more technology that can protect you um for renting out that can protect you um for renting out that can protect you um for renting out different rooms. Um if you just like different rooms. Um if you just like

[13:28] different rooms. Um if you just like bought a house, uh you make sure the bought a house, uh you make sure the bought a house, uh you make sure the zoning and everything is okay with that. zoning and everything is okay with that. zoning and everything is okay with that. Then you can um rent them out, have Then you can um rent them out, have Then you can um rent them out, have basically a free or paid to live basically a free or paid to live basically a free or paid to live somewhere. But the big benefit is the somewhere. But the big benefit is the somewhere. But the big benefit is the appreciation. So like you want to make appreciation. So like you want to make appreciation. So like you want to make sure you’re still buying it, right? and sure you’re still buying it, right? and sure you’re still buying it, right? and uh you know over five ten years that’s uh you know over five ten years that’s uh you know over five ten years that’s where your real wealth is coming from.

[13:48] where your real wealth is coming from. where your real wealth is coming from. >> Yeah. And that that kind of Yeah. If >> Yeah. And that that kind of Yeah. If >> Yeah. And that that kind of Yeah. If we’re going to keep focusing on the the we’re going to keep focusing on the the we’re going to keep focusing on the the real estate uh investing side of things real estate uh investing side of things real estate uh investing side of things to begin I think the appreciation talk to begin I think the appreciation talk to begin I think the appreciation talk is kind of important as well because I is kind of important as well because I is kind of important as well because I think there’s big differences in markets think there’s big differences in markets think there’s big differences in markets depending where where people are at. Um depending where where people are at. Um depending where where people are at. Um I think investing in your backyard is I think investing in your backyard is I think investing in your backyard is the easiest place to start. Um, it’s the easiest place to start. Um, it’s

[14:07] the easiest place to start. Um, it’s going to be the area that you have the going to be the area that you have the going to be the area that you have the most natural resources or knowledge, most natural resources or knowledge, most natural resources or knowledge, connections, all that stuff. It’s going connections, all that stuff. It’s going connections, all that stuff. It’s going to be easiest to start that way. It to be easiest to start that way. It to be easiest to start that way. It doesn’t mean you have to start that way, doesn’t mean you have to start that way, doesn’t mean you have to start that way, but it’s easiest. Um, and you’re going but it’s easiest. Um, and you’re going but it’s easiest. Um, and you’re going to feel more secure, too. Especially cuz to feel more secure, too. Especially cuz to feel more secure, too. Especially cuz the first deals like you kind of just the first deals like you kind of just the first deals like you kind of just got to get to the plate and start got to get to the plate and start got to get to the plate and start swinging a little bit. Like don’t take

[14:26] swinging a little bit. Like don’t take swinging a little bit. Like don’t take any deal, but like takes do something any deal, but like takes do something any deal, but like takes do something like get out there and do something. like get out there and do something. like get out there and do something. >> Yeah. And your your biggest thing cuz I >> Yeah. And your your biggest thing cuz I >> Yeah. And your your biggest thing cuz I know you help a lot of some clients with know you help a lot of some clients with know you help a lot of some clients with this too with uh investing is like you this too with uh investing is like you this too with uh investing is like you just need to have somebody in your just need to have somebody in your just need to have somebody in your corner that’s done it before.

[14:39] corner that’s done it before. corner that’s done it before. >> Yeah. >> Yeah. >> Yeah. >> Um because no matter what you’re doing, >> Um because no matter what you’re doing, >> Um because no matter what you’re doing, it’s real estate isn’t always perfect. it’s real estate isn’t always perfect. it’s real estate isn’t always perfect. We’ve, you know, we’ve lost money on We’ve, you know, we’ve lost money on We’ve, you know, we’ve lost money on deals. You have unforeseen issues when deals. You have unforeseen issues when deals. You have unforeseen issues when you get into renovations. Like there’s a you get into renovations. Like there’s a you get into renovations. Like there’s a lot of things where if you’re doing it lot of things where if you’re doing it lot of things where if you’re doing it your first time, too. I think I think your first time, too. I think I think your first time, too. I think I think that the catch with like the current that the catch with like the current that the catch with like the current market environment is there’s so many market environment is there’s so many

[14:57] market environment is there’s so many gurus and say like sales things out gurus and say like sales things out gurus and say like sales things out there that then you just keep you keep there that then you just keep you keep there that then you just keep you keep learning and you never do it. But learning and you never do it. But learning and you never do it. But >> you should find somebody that can >> you should find somebody that can >> you should find somebody that can actually like partner with you. You actually like partner with you. You actually like partner with you. You bring a deal or or you bring the sweat bring a deal or or you bring the sweat bring a deal or or you bring the sweat like something to where you’re making like something to where you’re making like something to where you’re making sure that you’re learning and not sure that you’re learning and not sure that you’re learning and not getting hurt on your first couple of getting hurt on your first couple of getting hurt on your first couple of deals. It’s not about making money on deals. It’s not about making money on

[15:13] deals. It’s not about making money on the first couple of deals. the first couple of deals. the first couple of deals. >> Yeah. Maybe not right away. Like if if >> Yeah. Maybe not right away. Like if if >> Yeah. Maybe not right away. Like if if you’re looking at it as a long-term you’re looking at it as a long-term you’re looking at it as a long-term rental, like you know, we you Eric and rental, like you know, we you Eric and rental, like you know, we you Eric and I, we owe about 47 I, we owe about 47 I, we owe about 47 $40,000, something like that on our $40,000, something like that on our $40,000, something like that on our first house. Um now, um and it’s a first house. Um now, um and it’s a first house. Um now, um and it’s a rental. It’s not killing it cash flow rental. It’s not killing it cash flow rental. It’s not killing it cash flow wise, but um you know, it would sell for wise, but um you know, it would sell for wise, but um you know, it would sell for 270 to 300,000. Um so, you know, it’s a 270 to 300,000. Um so, you know, it’s a 270 to 300,000. Um so, you know, it’s a we we need to put a little money. Let’s

[15:40] we we need to put a little money. Let’s we we need to put a little money. Let’s not get lost in the weeds here, but um not get lost in the weeds here, but um not get lost in the weeds here, but um you know, we just held that property you know, we just held that property you know, we just held that property over time and and we you know, we we put over time and and we you know, we we put over time and and we you know, we we put it on a 15-year mortgage. Um and I it on a 15-year mortgage. Um and I it on a 15-year mortgage. Um and I haven’t want to refinance it cuz it’s at haven’t want to refinance it cuz it’s at haven’t want to refinance it cuz it’s at like 3.15 or something like that, but um like 3.15 or something like that, but um like 3.15 or something like that, but um I don’t know if I would do that again.

[15:54] I don’t know if I would do that again. I don’t know if I would do that again. Uh probably just take the 30-year, but Uh probably just take the 30-year, but Uh probably just take the 30-year, but uh we now have a a big equity uh win uh we now have a a big equity uh win uh we now have a a big equity uh win with that. And that wasn’t a steal when with that. And that wasn’t a steal when with that. And that wasn’t a steal when we bought it. Yeah, the market was we bought it. Yeah, the market was we bought it. Yeah, the market was slower, so it wasn’t like we were slower, so it wasn’t like we were slower, so it wasn’t like we were getting ripped off. But getting ripped off. But getting ripped off. But >> I feel like everybody thinks that >> I feel like everybody thinks that >> I feel like everybody thinks that they’re kind of overpaying you often.

[16:10] they’re kind of overpaying you often. they’re kind of overpaying you often. Yeah. You know, when you’re when you’re Yeah. You know, when you’re when you’re Yeah. You know, when you’re when you’re buying and and so like if you’re looking buying and and so like if you’re looking buying and and so like if you’re looking to buy your first house, it’s going to to buy your first house, it’s going to to buy your first house, it’s going to be a house hack. Um yes, I think it’s be a house hack. Um yes, I think it’s be a house hack. Um yes, I think it’s important to try to, you know, get a important to try to, you know, get a important to try to, you know, get a decent deal, be in a good location that decent deal, be in a good location that decent deal, be in a good location that you think is going to do well over time, you think is going to do well over time, you think is going to do well over time, uh that’s going to make a good rental uh that’s going to make a good rental uh that’s going to make a good rental going forward when you’re able to buy going forward when you’re able to buy going forward when you’re able to buy another one. Um, but I don’t think you

[16:30] another one. Um, but I don’t think you another one. Um, but I don’t think you need to be paralyzed by it being this, need to be paralyzed by it being this, need to be paralyzed by it being this, you know, really big like, you know, you know, really big like, you know, you know, really big like, you know, thing that you need to renovate or, you thing that you need to renovate or, you thing that you need to renovate or, you know, it’s if you can move into it and know, it’s if you can move into it and know, it’s if you can move into it and rent some rooms out if you’re able to do rent some rooms out if you’re able to do rent some rooms out if you’re able to do that, then I mean, it could be a a great that, then I mean, it could be a a great that, then I mean, it could be a a great opportunity without having to be a grand opportunity without having to be a grand opportunity without having to be a grand slam, just a base hit.

[16:44] slam, just a base hit. slam, just a base hit. >> Yeah. Yeah. And I think I think you had >> Yeah. Yeah. And I think I think you had >> Yeah. Yeah. And I think I think you had a really good point, too, where some a really good point, too, where some a really good point, too, where some some very good deals I bought. It was at some very good deals I bought. It was at some very good deals I bought. It was at the time it was like, I don’t know if we the time it was like, I don’t know if we the time it was like, I don’t know if we we should maybe back out of this. We’re we should maybe back out of this. We’re we should maybe back out of this. We’re paying too much for it. and then you paying too much for it. and then you paying too much for it. and then you look back and you’re like, “Wow, yeah, I look back and you’re like, “Wow, yeah, I look back and you’re like, “Wow, yeah, I wish I could buy like a lot of deals at wish I could buy like a lot of deals at wish I could buy like a lot of deals at this this price range again.” Um, this this price range again.” Um, this this price range again.” Um, >> which which ties in to the point I was

[17:04] >> which which ties in to the point I was >> which which ties in to the point I was going to make too is that, you know, we going to make too is that, you know, we going to make too is that, you know, we are kind of in we’re in the coast, one are kind of in we’re in the coast, one are kind of in we’re in the coast, one of the coasts, right? So, like we are um of the coasts, right? So, like we are um of the coasts, right? So, like we are um in a more appreciationheavy market. Um, in a more appreciationheavy market. Um, in a more appreciationheavy market. Um, and so there’s going to be some other and so there’s going to be some other and so there’s going to be some other markets that people may not have as much markets that people may not have as much markets that people may not have as much appreciation. They may need to to focus appreciation. They may need to to focus appreciation. They may need to to focus more on the cash flow um to to make sure more on the cash flow um to to make sure more on the cash flow um to to make sure that they’re kind of getting some sort that they’re kind of getting some sort

[17:22] that they’re kind of getting some sort of base. I think if you look at it as of base. I think if you look at it as of base. I think if you look at it as like an a pyramid, if you’re starting like an a pyramid, if you’re starting like an a pyramid, if you’re starting your base of the pyramid, um if you’re your base of the pyramid, um if you’re your base of the pyramid, um if you’re an equity rich, if you’re in, you know, an equity rich, if you’re in, you know, an equity rich, if you’re in, you know, San Diego, you’re probably not going to San Diego, you’re probably not going to San Diego, you’re probably not going to be cash flowing. be cash flowing. be cash flowing. >> Yeah. Yeah. >> Yeah. Yeah.

[17:34] >> Yeah. Yeah. >> But you’re going to be able to get some >> But you’re going to be able to get some >> But you’re going to be able to get some great opportunities with equity. Um and great opportunities with equity. Um and great opportunities with equity. Um and that’s kind of the advantage of the that’s kind of the advantage of the that’s kind of the advantage of the market. That’s what you probably need to market. That’s what you probably need to market. That’s what you probably need to look at as your base to start if you are look at as your base to start if you are look at as your base to start if you are investing in your backdoor um backyard. investing in your backdoor um backyard.

[17:45] investing in your backdoor um backyard. And I think like you said, I think one And I think like you said, I think one And I think like you said, I think one of the bigger things is, you know, take of the bigger things is, you know, take of the bigger things is, you know, take some time to study and and learn and and some time to study and and learn and and some time to study and and learn and and find a mentor in the in the market, but find a mentor in the in the market, but find a mentor in the in the market, but based on what your goals are, like I based on what your goals are, like I based on what your goals are, like I personally wouldn’t invest out of state personally wouldn’t invest out of state personally wouldn’t invest out of state for single family rentals and cash for single family rentals and cash for single family rentals and cash flowing Midwest markets because that flowing Midwest markets because that flowing Midwest markets because that doesn’t make sense to me. Like for the doesn’t make sense to me. Like for the doesn’t make sense to me. Like for the amount of like control that you have to

[18:05] amount of like control that you have to amount of like control that you have to relinquish because you’re going to have relinquish because you’re going to have relinquish because you’re going to have to have a third party management company to have a third party management company to have a third party management company versus the appreciation you’re going to versus the appreciation you’re going to versus the appreciation you’re going to gain uh and what your cash like it just gain uh and what your cash like it just gain uh and what your cash like it just doesn’t make. But for somebody else, doesn’t make. But for somebody else, doesn’t make. But for somebody else, that could be a great thing. Yeah, that could be a great thing. Yeah, that could be a great thing. Yeah, >> I’ve just for me I feel like there are >> I’ve just for me I feel like there are >> I’ve just for me I feel like there are better vehicles to do that. Um, so just better vehicles to do that. Um, so just better vehicles to do that. Um, so just really depends on what what your goals really depends on what what your goals

[18:21] really depends on what what your goals are because if you want something that’s are because if you want something that’s are because if you want something that’s more appreciation heavy, which is likely more appreciation heavy, which is likely more appreciation heavy, which is likely where the real wealth is because it where the real wealth is because it where the real wealth is because it doesn’t get taxed as much, then that doesn’t get taxed as much, then that doesn’t get taxed as much, then that changes how your strategy is, right? changes how your strategy is, right? changes how your strategy is, right? >> The biggest thing either way, like I >> The biggest thing either way, like I >> The biggest thing either way, like I think going back to the one thing is think going back to the one thing is think going back to the one thing is like either way, whichever way you’re like either way, whichever way you’re like either way, whichever way you’re looking at it and you feel confident in looking at it and you feel confident in looking at it and you feel confident in that thesis, you just need to like stick

[18:38] that thesis, you just need to like stick that thesis, you just need to like stick to it. So those cash flowing ones that to it. So those cash flowing ones that to it. So those cash flowing ones that I’m saying don’t make much sense for me. I’m saying don’t make much sense for me. I’m saying don’t make much sense for me. Well, in 5 years, if all of those units Well, in 5 years, if all of those units Well, in 5 years, if all of those units that you’ve bought have, you know, had that you’ve bought have, you know, had that you’ve bought have, you know, had their cash flow increase a decent their cash flow increase a decent their cash flow increase a decent amount, 25, 30, 50, whatever, like then amount, 25, 30, 50, whatever, like then amount, 25, 30, 50, whatever, like then they’re going to start making a lot more they’re going to start making a lot more they’re going to start making a lot more sense.

[18:53] sense. sense. >> Yeah. >> Yeah. >> Yeah. >> Um for me personally, all my single >> Um for me personally, all my single >> Um for me personally, all my single family rentals, they they just don’t, family rentals, they they just don’t, family rentals, they they just don’t, you know, they don’t really make much you know, they don’t really make much you know, they don’t really make much money and they’re they’re starting to money and they’re they’re starting to money and they’re they’re starting to now, but I’ve had them for almost, you now, but I’ve had them for almost, you now, but I’ve had them for almost, you know, a decade at this point. [laughter] know, a decade at this point. [laughter] know, a decade at this point. [laughter] >> So, but you’ve seen some good >> So, but you’ve seen some good >> So, but you’ve seen some good appreciation in them.

[19:05] appreciation in them. appreciation in them. >> Yeah. Yeah. Exactly. Um, and so, yeah, >> Yeah. Yeah. Exactly. Um, and so, yeah, >> Yeah. Yeah. Exactly. Um, and so, yeah, and I think at this stage, what we’re and I think at this stage, what we’re and I think at this stage, what we’re talking about is kind of like the first talking about is kind of like the first talking about is kind of like the first first couple deals. And, um, I think, first couple deals. And, um, I think, first couple deals. And, um, I think, you know, again, kind of getting some you know, again, kind of getting some you know, again, kind of getting some equity to play with. Um, whether you equity to play with. Um, whether you equity to play with. Um, whether you realize that equity through a home realize that equity through a home realize that equity through a home equity line of credit, uh, whether you equity line of credit, uh, whether you equity line of credit, uh, whether you refinance, which, um, is kind of to your refinance, which, um, is kind of to your refinance, which, um, is kind of to your point you made earlier about, uh, the

[19:25] point you made earlier about, uh, the point you made earlier about, uh, the appreciation is kind of a tax a more tax appreciation is kind of a tax a more tax appreciation is kind of a tax a more tax um, what’s the word? Uh it’s better for um, what’s the word? Uh it’s better for um, what’s the word? Uh it’s better for taxes because because you can refinance taxes because because you can refinance taxes because because you can refinance the money out and that won’t be taxed uh the money out and that won’t be taxed uh the money out and that won’t be taxed uh on on as opposed to selling it uh or on on as opposed to selling it uh or on on as opposed to selling it uh or having you know cash flow come in that’s having you know cash flow come in that’s having you know cash flow come in that’s going to be taxed. Um but uh but yeah, going to be taxed. Um but uh but yeah, going to be taxed. Um but uh but yeah, for the for the base like let’s you know for the for the base like let’s you know for the for the base like let’s you know if you’re building up your your if you’re building up your your if you’re building up your your portfolio to start with um house hacking

[19:50] portfolio to start with um house hacking portfolio to start with um house hacking uh because really saving up 5% to get a uh because really saving up 5% to get a uh because really saving up 5% to get a conventional loan is is really all you conventional loan is is really all you conventional loan is is really all you can do to to start. Um, I think that’s a can do to to start. Um, I think that’s a can do to to start. Um, I think that’s a great way to start. Um, and and you great way to start. Um, and and you great way to start. Um, and and you know, if you if you are able to pick up know, if you if you are able to pick up know, if you if you are able to pick up a property a year, every year or a property a year, every year or a property a year, every year or something like that for the first 5 something like that for the first 5 something like that for the first 5 years, that’s a pretty awesome start to years, that’s a pretty awesome start to years, that’s a pretty awesome start to your career. It can be hard if you uh your career. It can be hard if you uh your career. It can be hard if you uh have a family, if you have if you have a

[20:12] have a family, if you have if you have a have a family, if you have if you have a wife and kids, they’re not looking wife and kids, they’re not looking wife and kids, they’re not looking forward to bouncing around from house to forward to bouncing around from house to forward to bouncing around from house to house um and like that. So, um it house um and like that. So, um it house um and like that. So, um it doesn’t work for everybody, but um you doesn’t work for everybody, but um you doesn’t work for everybody, but um you know, if you’re kind of building up your know, if you’re kind of building up your know, if you’re kind of building up your sales career as you are not really sales career as you are not really sales career as you are not really actively investing, you’re you’re buying actively investing, you’re you’re buying actively investing, you’re you’re buying a house to live in um and maybe you’re a house to live in um and maybe you’re a house to live in um and maybe you’re renting out part of it out to other renting out part of it out to other renting out part of it out to other people um and then moving to the next

[20:33] people um and then moving to the next people um and then moving to the next one. It’s not like you’re, you know, out one. It’s not like you’re, you know, out one. It’s not like you’re, you know, out necessarily hunting for deals and doing necessarily hunting for deals and doing necessarily hunting for deals and doing active renovations and all these more active renovations and all these more active renovations and all these more advanced strategies. It’s just kind of advanced strategies. It’s just kind of advanced strategies. It’s just kind of building that base up of a of a building that base up of a of a building that base up of a of a portfolio. portfolio. portfolio. >> Yeah. Yeah. And I mean that’s that’s a >> Yeah. Yeah. And I mean that’s that’s a >> Yeah. Yeah. And I mean that’s that’s a strategy too, like builders will stay in strategy too, like builders will stay in strategy too, like builders will stay in the same spot for a couple years and the same spot for a couple years and the same spot for a couple years and then move because there’s tax advantages then move because there’s tax advantages

[20:49] then move because there’s tax advantages with that. Um there’s there’s just a with that. Um there’s there’s just a with that. Um there’s there’s just a there’s several different good ways to there’s several different good ways to there’s several different good ways to get introduced to real estate like get introduced to real estate like get introduced to real estate like you’re saying. So it just really you’re saying. So it just really you’re saying. So it just really >> um I used to hate this when I’d hear >> um I used to hate this when I’d hear >> um I used to hate this when I’d hear podcast saying like it really depends podcast saying like it really depends podcast saying like it really depends what your goals are, but it it does what your goals are, but it it does what your goals are, but it it does because you can go the agent route, you because you can go the agent route, you because you can go the agent route, you can um build homes like that, stay for a can um build homes like that, stay for a can um build homes like that, stay for a couple years. Um you can house hack.

[21:09] couple years. Um you can house hack. couple years. Um you can house hack. Yeah. Um so I went the house hack and Yeah. Um so I went the house hack and Yeah. Um so I went the house hack and investor. That’s what I did when I was investor. That’s what I did when I was investor. That’s what I did when I was started. I I house hacked and uh just started. I I house hacked and uh just started. I I house hacked and uh just did investment real estate. So, I was did investment real estate. So, I was did investment real estate. So, I was buying rentals and flipping houses. Um buying rentals and flipping houses. Um buying rentals and flipping houses. Um and and and you talk about building and and and and you talk about building and and and and you talk about building and that’s that’s a definitely another that’s that’s a definitely another that’s that’s a definitely another avenue. Lots of the other avenues of avenue. Lots of the other avenues of avenue. Lots of the other avenues of real estate investing in involve more real estate investing in involve more real estate investing in involve more capital. Um, and that’s kind of where,

[21:30] capital. Um, and that’s kind of where, capital. Um, and that’s kind of where, you know, if you are an you know, if you are an you know, if you are an appreciationheavy market, uh, and you’re appreciationheavy market, uh, and you’re appreciationheavy market, uh, and you’re able to start building up that base and able to start building up that base and able to start building up that base and start establishing some, um, equity in start establishing some, um, equity in start establishing some, um, equity in these properties, you can tap into that these properties, you can tap into that these properties, you can tap into that with, like I said, the home equity lines with, like I said, the home equity lines with, like I said, the home equity lines of credit. U, I usually say that it’s of credit. U, I usually say that it’s of credit. U, I usually say that it’s best to like, you know, try while you’re best to like, you know, try while you’re best to like, you know, try while you’re still living in the house. If there is still living in the house. If there is still living in the house. If there is equity in the house, uh, try to tap into

[21:49] equity in the house, uh, try to tap into equity in the house, uh, try to tap into that with a HELOC before you buy the that with a HELOC before you buy the that with a HELOC before you buy the next one and then keep that HELOC open next one and then keep that HELOC open next one and then keep that HELOC open because the terms are a little bit because the terms are a little bit because the terms are a little bit better if you have as a a primary better if you have as a a primary better if you have as a a primary residency. Um, but then after that, um, residency. Um, but then after that, um, residency. Um, but then after that, um, if you aren’t able to do it or or you if you aren’t able to do it or or you if you aren’t able to do it or or you got a lot more equity in these got a lot more equity in these got a lot more equity in these properties and and the HELOC’s not properties and and the HELOC’s not properties and and the HELOC’s not really tapping into all of that, you can really tapping into all of that, you can really tapping into all of that, you can secure like multiple lines of like you

[22:08] secure like multiple lines of like you secure like multiple lines of like you can get one line of credit on multiple can get one line of credit on multiple can get one line of credit on multiple properties too, which is another way to properties too, which is another way to properties too, which is another way to get that at equity. get that at equity. get that at equity. >> That could be I mean that could be >> That could be I mean that could be >> That could be I mean that could be pretty cool to to chat with people about pretty cool to to chat with people about pretty cool to to chat with people about because like uh the commercial real because like uh the commercial real because like uh the commercial real estate side like you’re there are the estate side like you’re there are the estate side like you’re there are the standard transactions, but there’s also standard transactions, but there’s also standard transactions, but there’s also a lot of creativity that can go into it a lot of creativity that can go into it a lot of creativity that can go into it and that’s something that you can carry

[22:25] and that’s something that you can carry and that’s something that you can carry forward here. Like I don’t really like forward here. Like I don’t really like forward here. Like I don’t really like sub two because I you know I think sub two because I you know I think sub two because I you know I think that’s a little risky with where we are that’s a little risky with where we are that’s a little risky with where we are in the market cycle anyway. You’re going in the market cycle anyway. You’re going in the market cycle anyway. You’re going to be you know probably negative equity. to be you know probably negative equity. to be you know probably negative equity. Um but you can still do a lot of Um but you can still do a lot of Um but you can still do a lot of creative things where you’re you’re creative things where you’re you’re creative things where you’re you’re getting seller financing at a term that getting seller financing at a term that getting seller financing at a term that works and that requires you to have less works and that requires you to have less works and that requires you to have less down if you have a good relationship

[22:42] down if you have a good relationship down if you have a good relationship with the seller. Um yeah, you mentioned with the seller. Um yeah, you mentioned with the seller. Um yeah, you mentioned it before like I would if I was doing uh it before like I would if I was doing uh it before like I would if I was doing uh you know starting over um I would try to you know starting over um I would try to you know starting over um I would try to have some career that’s real estate have some career that’s real estate have some career that’s real estate focused and then look for like a four focused and then look for like a four focused and then look for like a four unit you know somewhere between two to unit you know somewhere between two to unit you know somewhere between two to four units four units four units >> to buy because you can get you can get >> to buy because you can get you can get >> to buy because you can get you can get the uh 5% or less down and then the uh 5% or less down and then the uh 5% or less down and then basically you’re house hacking the units basically you’re house hacking the units

[23:06] basically you’re house hacking the units and then you can eventually buy and then you can eventually buy and then you can eventually buy something else and then lease that unit something else and then lease that unit something else and then lease that unit when you’re done. Um, I mean that’s the when you’re done. Um, I mean that’s the when you’re done. Um, I mean that’s the ideal like getting a a forplex with a ideal like getting a a forplex with a ideal like getting a a forplex with a low money down cuz you can Yeah, up to low money down cuz you can Yeah, up to low money down cuz you can Yeah, up to four is is where it’s not commercial and four is is where it’s not commercial and four is is where it’s not commercial and yeah, getting the FHA, getting the yeah, getting the FHA, getting the yeah, getting the FHA, getting the whatever. Um, yeah, low entry. That’s whatever. Um, yeah, low entry. That’s whatever. Um, yeah, low entry. That’s the ideal for sure.

[23:23] the ideal for sure. the ideal for sure. >> I’m pretty I’m pretty riskaverse, too, >> I’m pretty I’m pretty riskaverse, too, >> I’m pretty I’m pretty riskaverse, too, though. So, the the catch with that though. So, the the catch with that though. So, the the catch with that would be um and with any of these would be um and with any of these would be um and with any of these depending on like how your market is and depending on like how your market is and depending on like how your market is and how expensive the property is is like how expensive the property is is like how expensive the property is is like you want to make sure that you’re going you want to make sure that you’re going you want to make sure that you’re going to have at least 6 months operating to have at least 6 months operating to have at least 6 months operating expenses because if some if two of your expenses because if some if two of your expenses because if some if two of your tenants move out and they trash the tenants move out and they trash the tenants move out and they trash the place Yeah.

[23:39] place Yeah. place Yeah. >> and you’re not making any like you’re >> and you’re not making any like you’re >> and you’re not making any like you’re you’re barely making anything off of the you’re barely making anything off of the you’re barely making anything off of the cash flow when it’s occupied, then cash flow when it’s occupied, then cash flow when it’s occupied, then you’re kind of in a bad spot if you’ve you’re kind of in a bad spot if you’ve you’re kind of in a bad spot if you’ve got no reserves. So, just making sure got no reserves. So, just making sure got no reserves. So, just making sure that you’re you’re being smart about it that you’re you’re being smart about it that you’re you’re being smart about it like that. But um like that. But um like that. But um >> and that’s and that’s where where like >> and that’s and that’s where where like >> and that’s and that’s where where like you know maybe that’s not the first you know maybe that’s not the first you know maybe that’s not the first play. Maybe the first play is just a play. Maybe the first play is just a

[23:56] play. Maybe the first play is just a single family. Um and you know you got single family. Um and you know you got single family. Um and you know you got to have a place to live. Um and then if to have a place to live. Um and then if to have a place to live. Um and then if you have that equity line of credit you have that equity line of credit you have that equity line of credit you’re going to go you saved up money as you’re going to go you saved up money as you’re going to go you saved up money as well. Um now that equity line of credit well. Um now that equity line of credit well. Um now that equity line of credit you may not want to tap into. You don’t you may not want to tap into. You don’t you may not want to tap into. You don’t want to use it as a long-term thing. Um want to use it as a long-term thing. Um want to use it as a long-term thing. Um like you wouldn’t want to put it down. I like you wouldn’t want to put it down. I like you wouldn’t want to put it down. I I wouldn’t want to put it down as a down I wouldn’t want to put it down as a down I wouldn’t want to put it down as a down payment for the forplex. But you now

[24:14] payment for the forplex. But you now payment for the forplex. But you now have a safety cushion if something have a safety cushion if something have a safety cushion if something happens. It’s like you’ve spent most of happens. It’s like you’ve spent most of happens. It’s like you’ve spent most of your money buying this place, but you your money buying this place, but you your money buying this place, but you have access to $50,000 in, you know, in have access to $50,000 in, you know, in have access to $50,000 in, you know, in this equity line of credit. Um maybe you this equity line of credit. Um maybe you this equity line of credit. Um maybe you can rely on that a little bit so that can rely on that a little bit so that can rely on that a little bit so that you know if you do need to renovate you know if you do need to renovate you know if you do need to renovate properties or you have that, you know, properties or you have that, you know, properties or you have that, you know, nightmare situation. Um you have access nightmare situation. Um you have access nightmare situation. Um you have access to some capital and maybe you can then

[24:36] to some capital and maybe you can then to some capital and maybe you can then refinance it out into a new note. refinance it out into a new note. refinance it out into a new note. >> Yeah. And I think I think just the >> Yeah. And I think I think just the >> Yeah. And I think I think just the conversation is like um it just kind of conversation is like um it just kind of conversation is like um it just kind of showcases like that’s there’s so many showcases like that’s there’s so many showcases like that’s there’s so many different ways to do it. like that’s different ways to do it. like that’s different ways to do it. like that’s that’s a perfectly reasonable way to do that’s a perfectly reasonable way to do that’s a perfectly reasonable way to do it. If it was me and I was like having it. If it was me and I was like having it. If it was me and I was like having trouble with the down payment portion of trouble with the down payment portion of trouble with the down payment portion of it, like I can’t come up with a down it, like I can’t come up with a down it, like I can’t come up with a down payment, then I would be looking for

[24:53] payment, then I would be looking for payment, then I would be looking for like who can I get that money from and like who can I get that money from and like who can I get that money from and work out a deal with. So that way if I work out a deal with. So that way if I work out a deal with. So that way if I do have, let’s say it’s you need to have do have, let’s say it’s you need to have do have, let’s say it’s you need to have 50 grand. Um who could I get the 50 50 grand. Um who could I get the 50 50 grand. Um who could I get the 50 grand from and give them a return? Maybe grand from and give them a return? Maybe grand from and give them a return? Maybe they get a slice of the equity on the they get a slice of the equity on the they get a slice of the equity on the upside or they get, you know, there’s upside or they get, you know, there’s upside or they get, you know, there’s different things you can do percentage different things you can do percentage different things you can do percentage of the cash flow. And that way, if I of the cash flow. And that way, if I of the cash flow. And that way, if I already had 50 grand, I’m saving that

[25:13] already had 50 grand, I’m saving that already had 50 grand, I’m saving that for a rainy day or potentially another for a rainy day or potentially another for a rainy day or potentially another deal comes up and I need half of that deal comes up and I need half of that deal comes up and I need half of that for that other deal. And then now I can for that other deal. And then now I can for that other deal. And then now I can do that. I would I would still try to do that. I would I would still try to do that. I would I would still try to find that same person, but use their find that same person, but use their find that same person, but use their money to buy the second deal. But money to buy the second deal. But money to buy the second deal. But [laughter] [laughter] [laughter] like it gives you options. You want to like it gives you options. You want to like it gives you options. You want to have that flexibility.

[25:26] have that flexibility. have that flexibility. >> Yeah. No, totally. Um but and that’s the >> Yeah. No, totally. Um but and that’s the >> Yeah. No, totally. Um but and that’s the beauty of real estate, right? I mean, beauty of real estate, right? I mean, beauty of real estate, right? I mean, there’s there’s so many different there’s there’s so many different there’s there’s so many different creative strategies. Um and yeah, just creative strategies. Um and yeah, just creative strategies. Um and yeah, just kind of getting getting started is is kind of getting getting started is is kind of getting getting started is is usually the biggest hurdle for people. usually the biggest hurdle for people.

[25:38] usually the biggest hurdle for people. Um, Um, Um, >> should you do a quick like here’s here’s >> should you do a quick like here’s here’s >> should you do a quick like here’s here’s how I would go from like house hacking how I would go from like house hacking how I would go from like house hacking getting units to like maybe a fiveyear getting units to like maybe a fiveyear getting units to like maybe a fiveyear plan to scale? plan to scale? plan to scale? >> Yeah, sure. >> Yeah, sure. >> Yeah, sure. >> Um, so I mean didn’t plan for this at >> Um, so I mean didn’t plan for this at >> Um, so I mean didn’t plan for this at all, so I have to think off the top of all, so I have to think off the top of all, so I have to think off the top of my head, but I would say if you’re my head, but I would say if you’re my head, but I would say if you’re starting from zero, then um try to get starting from zero, then um try to get starting from zero, then um try to get into a some form of salary or into a some form of salary or into a some form of salary or commissionbased, you know, job where you

[26:00] commissionbased, you know, job where you commissionbased, you know, job where you can make a lot of money that has some of can make a lot of money that has some of can make a lot of money that has some of your control to increase the upside if your control to increase the upside if your control to increase the upside if possible. That for a lot of people is possible. That for a lot of people is possible. That for a lot of people is already going to sound like a pipe already going to sound like a pipe already going to sound like a pipe dream, but um you know just as an agent, dream, but um you know just as an agent, dream, but um you know just as an agent, whatever like whatever you can get whatever like whatever you can get whatever like whatever you can get that’s gonna that’s going to pay your that’s gonna that’s going to pay your that’s gonna that’s going to pay your bills and ideally you want to maximize bills and ideally you want to maximize bills and ideally you want to maximize that as much as you can whatever your that as much as you can whatever your that as much as you can whatever your skill set is. So if you’re if you’re

[26:18] skill set is. So if you’re if you’re skill set is. So if you’re if you’re super low on that like your your super low on that like your your super low on that like your your profession then you need to like get a profession then you need to like get a profession then you need to like get a skill that’s going to um be better paid. skill that’s going to um be better paid. skill that’s going to um be better paid. It’s just that’s just what it is. Um and It’s just that’s just what it is. Um and It’s just that’s just what it is. Um and like you’re saying an agent’s a great like you’re saying an agent’s a great like you’re saying an agent’s a great great way to do that. Um, the next thing great way to do that. Um, the next thing great way to do that. Um, the next thing would be I would start trying to build would be I would start trying to build would be I would start trying to build relationships with other people that um relationships with other people that um relationships with other people that um are in the space already. A lot of uh are in the space already. A lot of uh are in the space already. A lot of uh it’s it’s incredible how the real estate

[26:41] it’s it’s incredible how the real estate it’s it’s incredible how the real estate investing space is cuz um a lot of investing space is cuz um a lot of investing space is cuz um a lot of people are just really willing to talk people are just really willing to talk people are just really willing to talk and give advice and help. So um I’ve sat and give advice and help. So um I’ve sat and give advice and help. So um I’ve sat down and helped with helped a lot of down and helped with helped a lot of down and helped with helped a lot of people, but then there are people that people, but then there are people that people, but then there are people that I’m surprised even have a phone call I’m surprised even have a phone call I’m surprised even have a phone call with me that have provided guidance. So, with me that have provided guidance. So, with me that have provided guidance. So, like getting you’re building a little like getting you’re building a little like getting you’re building a little bit of a team of of mentors and stuff bit of a team of of mentors and stuff bit of a team of of mentors and stuff there and also resources to help you

[27:01] there and also resources to help you there and also resources to help you capitalize on that first deal. And uh to capitalize on that first deal. And uh to capitalize on that first deal. And uh to your point, I would I would try to start your point, I would I would try to start your point, I would I would try to start uh like buying a multi-unit and hack uh like buying a multi-unit and hack uh like buying a multi-unit and hack like rent out the other unit, but then like rent out the other unit, but then like rent out the other unit, but then also on my own unit, rent out whatever also on my own unit, rent out whatever also on my own unit, rent out whatever bedrooms I don’t have um or don’t need.

[27:16] bedrooms I don’t have um or don’t need. bedrooms I don’t have um or don’t need. Um and then from there, just keep saving Um and then from there, just keep saving Um and then from there, just keep saving and um learning to where and building and um learning to where and building and um learning to where and building relationships to where I can take on relationships to where I can take on relationships to where I can take on bigger deals. So, um, building up a bigger deals. So, um, building up a bigger deals. So, um, building up a better offmarket pipeline to get cuz better offmarket pipeline to get cuz better offmarket pipeline to get cuz right now it’s really hard to find a right now it’s really hard to find a right now it’s really hard to find a deal unless it’s probably going to be deal unless it’s probably going to be deal unless it’s probably going to be offm market and distressed.

[27:33] offm market and distressed. offm market and distressed. >> Mhm. >> Mhm. >> Mhm. >> And then just scaling up to a to a point >> And then just scaling up to a to a point >> And then just scaling up to a to a point to where I feel comfortable um to take to where I feel comfortable um to take to where I feel comfortable um to take on larger deals. So, I if I started on larger deals. So, I if I started on larger deals. So, I if I started over, I would probably I would probably over, I would probably I would probably over, I would probably I would probably immediately start looking at bigger immediately start looking at bigger immediately start looking at bigger deals again because I just already have deals again because I just already have deals again because I just already have that experience. But, that experience. But, that experience. But, >> right, it’s hard to know >> right, it’s hard to know >> right, it’s hard to know >> when you’re when you’re learning and you >> when you’re when you’re learning and you >> when you’re when you’re learning and you you got to cut your teeth on some of the

[27:52] you got to cut your teeth on some of the you got to cut your teeth on some of the smaller stuff. think it’s okay to grow smaller stuff. think it’s okay to grow smaller stuff. think it’s okay to grow more organically because you hear I hear more organically because you hear I hear more organically because you hear I hear a lot like okay you bought a 4 unit now a lot like okay you bought a 4 unit now a lot like okay you bought a 4 unit now go out and buy 50 units go out and buy go out and buy 50 units go out and buy go out and buy 50 units go out and buy 100 units I’d go out and you know again 100 units I’d go out and you know again 100 units I’d go out and you know again try to do like eight units now you’re in try to do like eight units now you’re in try to do like eight units now you’re in commercial it’s not too big uh it is commercial it’s not too big uh it is commercial it’s not too big uh it is going to require a lot of your time so going to require a lot of your time so going to require a lot of your time so it’s not something you’re going to get it’s not something you’re going to get

[28:07] it’s not something you’re going to get rich quick with rich quick with rich quick with >> but a lot of those things it’s actually >> but a lot of those things it’s actually >> but a lot of those things it’s actually harder to do the small ones so I I sold harder to do the small ones so I I sold harder to do the small ones so I I sold a 33 lot community this year and it’s it a 33 lot community this year and it’s it a 33 lot community this year and it’s it was way more work than our larger ones was way more work than our larger ones was way more work than our larger ones so Um, yeah, cut your teeth on that. so Um, yeah, cut your teeth on that. so Um, yeah, cut your teeth on that. You’re starting to build the You’re starting to build the You’re starting to build the relationships and then you you scale on relationships and then you you scale on relationships and then you you scale on whatever that asset class is. So, self- whatever that asset class is. So, self- whatever that asset class is. So, self- storage, multif family, whatever. Um, storage, multif family, whatever. Um,

[28:31] storage, multif family, whatever. Um, that’s that’s how I would do it. that’s that’s how I would do it. that’s that’s how I would do it. >> Yeah. Yeah. you you’ve said that to me a >> Yeah. Yeah. you you’ve said that to me a >> Yeah. Yeah. you you’ve said that to me a lot like um basically the smaller deals lot like um basically the smaller deals lot like um basically the smaller deals aren’t as worth I mean they’re the same aren’t as worth I mean they’re the same aren’t as worth I mean they’re the same amount of work uh for way or they’re amount of work uh for way or they’re amount of work uh for way or they’re more work because you can’t afford to more work because you can’t afford to more work because you can’t afford to hire uh some of the people needed in uh hire uh some of the people needed in uh hire uh some of the people needed in uh to do those uh so property manage to you to do those uh so property manage to you to do those uh so property manage to you know whatever uh maintenance all that know whatever uh maintenance all that know whatever uh maintenance all that kind of stuff is

[28:55] kind of stuff is kind of stuff is >> yeah I mean it’s it’s actually >> yeah I mean it’s it’s actually >> yeah I mean it’s it’s actually counterintuitive because your risk is counterintuitive because your risk is counterintuitive because your risk is higher on the smaller stuff if you know higher on the smaller stuff if you know higher on the smaller stuff if you know if you have a 20 unit property and three if you have a 20 unit property and three if you have a 20 unit property and three people move out, that’s over 10%. people move out, that’s over 10%. people move out, that’s over 10%. Whereas if you have 200 unit property, Whereas if you have 200 unit property, Whereas if you have 200 unit property, um you got to have over 20 people move um you got to have over 20 people move um you got to have over 20 people move out to be over 10%. So um and then to out to be over 10%. So um and then to out to be over 10%. So um and then to your point too, yeah, you just, you your point too, yeah, you just, you your point too, yeah, you just, you know, know, know, >> a lot of the smaller properties, the

[29:16] >> a lot of the smaller properties, the >> a lot of the smaller properties, the owner will be doing a lot of the work owner will be doing a lot of the work owner will be doing a lot of the work and they won’t want that in the and they won’t want that in the and they won’t want that in the valuation when they want their price. valuation when they want their price. valuation when they want their price. >> Whereas everything else is more >> Whereas everything else is more >> Whereas everything else is more professional and the payroll and professional and the payroll and professional and the payroll and everything else is already like factored everything else is already like factored everything else is already like factored in to the price and people they’re in to the price and people they’re in to the price and people they’re they’re more they’re investors. they they’re more they’re investors. they they’re more they’re investors. they understand like, okay, yeah, you’re understand like, okay, yeah, you’re understand like, okay, yeah, you’re going to have to pay a salary for this

[29:34] going to have to pay a salary for this going to have to pay a salary for this position and um here are the expenses position and um here are the expenses position and um here are the expenses that go along with that. So, that go along with that. So, that go along with that. So, >> yeah, that makes a lot of sense. Um, and >> yeah, that makes a lot of sense. Um, and >> yeah, that makes a lot of sense. Um, and [snorts] it’s just, you know, it’s it’s [snorts] it’s just, you know, it’s it’s [snorts] it’s just, you know, it’s it’s a fear limiting thing. So, I think it’s, a fear limiting thing. So, I think it’s, a fear limiting thing. So, I think it’s, you know, everybody has to kind of you know, everybody has to kind of you know, everybody has to kind of assess their uh abilities to to to take assess their uh abilities to to to take assess their uh abilities to to to take on uh big scary things.

[29:53] on uh big scary things. on uh big scary things. >> Yeah. Um I think everybody has their own >> Yeah. Um I think everybody has their own >> Yeah. Um I think everybody has their own like tolerance for that and and that is like tolerance for that and and that is like tolerance for that and and that is often you know why people never even get often you know why people never even get often you know why people never even get started is that fear but yeah I mean I started is that fear but yeah I mean I started is that fear but yeah I mean I think I think I’ve heard the you you think I think I’ve heard the you you think I think I’ve heard the you you mentioned a faster jump u but I’ve heard mentioned a faster jump u but I’ve heard mentioned a faster jump u but I’ve heard other people talk about yeah doing like other people talk about yeah doing like other people talk about yeah doing like the you know start with a single family the you know start with a single family the you know start with a single family then go to duplex like so the doubling then go to duplex like so the doubling

[30:13] then go to duplex like so the doubling up each time quadriplex ax 16 up each time quadriplex ax 16 up each time quadriplex ax 16 >> um as a way to go u but there’s not >> um as a way to go u but there’s not >> um as a way to go u but there’s not really a rule for you to need to do that really a rule for you to need to do that really a rule for you to need to do that like if if you were somebody that was like if if you were somebody that was like if if you were somebody that was very motivated and and had zero money, very motivated and and had zero money, very motivated and and had zero money, zero experience, and then you started zero experience, and then you started zero experience, and then you started learning.

[30:28] learning. learning. >> Yeah. >> Yeah. >> Yeah. >> By, you know, reading all the books and >> By, you know, reading all the books and >> By, you know, reading all the books and and everything, but you know, focused and everything, but you know, focused and everything, but you know, focused on, let’s say, apartments um and and on, let’s say, apartments um and and on, let’s say, apartments um and and then you were able to find a a property then you were able to find a a property then you were able to find a a property that you could see being a good value ad that you could see being a good value ad that you could see being a good value ad and you took it to somebody, some people and you took it to somebody, some people and you took it to somebody, some people um and wanted to be kind of involved in um and wanted to be kind of involved in um and wanted to be kind of involved in that. could be a 400plex apartment that. could be a 400plex apartment that. could be a 400plex apartment complex and uh there’s not really a rule complex and uh there’s not really a rule

[30:51] complex and uh there’s not really a rule that says you can’t do that. that says you can’t do that. that says you can’t do that. >> You haven’t done a single family yet. >> You haven’t done a single family yet. >> You haven’t done a single family yet. >> Well, in in Samzel’s book, uh it’s kind >> Well, in in Samzel’s book, uh it’s kind >> Well, in in Samzel’s book, uh it’s kind of interesting because he talks about of interesting because he talks about of interesting because he talks about how uh their business grew and how they how uh their business grew and how they how uh their business grew and how they just he started out with a property just he started out with a property just he started out with a property management company. They he also tells a management company. They he also tells a management company. They he also tells a story of how he bought a bunch of single story of how he bought a bunch of single story of how he bought a bunch of single family properties and was planning to family properties and was planning to family properties and was planning to basically knock them all down to make an

[31:12] basically knock them all down to make an basically knock them all down to make an apartment complex. And he’s like, “We apartment complex. And he’s like, “We apartment complex. And he’s like, “We just didn’t know we weren’t supposed to just didn’t know we weren’t supposed to just didn’t know we weren’t supposed to be able to do that.” They just like did be able to do that.” They just like did be able to do that.” They just like did it because they they didn’t have those it because they they didn’t have those it because they they didn’t have those limiting beliefs. limiting beliefs. limiting beliefs. >> Yeah. >> Yeah. >> Yeah. >> But I think I think it’s also like the >> But I think I think it’s also like the >> But I think I think it’s also like the environment more recently isn’t as much environment more recently isn’t as much environment more recently isn’t as much like this, but used to be very dangerous like this, but used to be very dangerous like this, but used to be very dangerous where it was like, “Oh yeah, just go where it was like, “Oh yeah, just go

[31:25] where it was like, “Oh yeah, just go ahead. You took a $5,000 course and you ahead. You took a $5,000 course and you ahead. You took a $5,000 course and you haven’t done any real estate. Go ahead haven’t done any real estate. Go ahead haven’t done any real estate. Go ahead and buy a 200.” Like it’s not and buy a 200.” Like it’s not and buy a 200.” Like it’s not >> They’re also No, it’s not that it’s no >> They’re also No, it’s not that it’s no >> They’re also No, it’s not that it’s no work. Like you need to have a lot of work. Like you need to have a lot of work. Like you need to have a lot of experience. It is a lot of work. My experience. It is a lot of work. My experience. It is a lot of work. My partners and I work every day a week.

[31:37] partners and I work every day a week. partners and I work every day a week. Every day of the week basically like Every day of the week basically like Every day of the week basically like it’s it is a lot. You got to learn too. it’s it is a lot. You got to learn too. it’s it is a lot. You got to learn too. >> Yeah. Totally. Totally. And I and um I >> Yeah. Totally. Totally. And I and um I >> Yeah. Totally. Totally. And I and um I intentionally said take it to somebody intentionally said take it to somebody intentionally said take it to somebody to work with on because to work with on because to work with on because >> uh you’re the chances of failure uh >> uh you’re the chances of failure uh >> uh you’re the chances of failure uh doing it all yourself the first time doing it all yourself the first time doing it all yourself the first time with no experience would be probably with no experience would be probably with no experience would be probably pretty high and and it’s definitely a pretty high and and it’s definitely a pretty high and and it’s definitely a risk. So um yeah, you probably wouldn’t

[31:57] risk. So um yeah, you probably wouldn’t risk. So um yeah, you probably wouldn’t be able to get funding. be able to get funding. be able to get funding. >> Correct. Yeah. Yeah. Yeah. >> Correct. Yeah. Yeah. Yeah. >> Correct. Yeah. Yeah. Yeah. >> Um but yeah, so it’s it’s a there’s >> Um but yeah, so it’s it’s a there’s >> Um but yeah, so it’s it’s a there’s there’s a lot of different ways to to go there’s a lot of different ways to to go there’s a lot of different ways to to go about it, but I think at the end of the about it, but I think at the end of the about it, but I think at the end of the day, like it really assess where you’re day, like it really assess where you’re day, like it really assess where you’re at with um your risk tolerance and kind at with um your risk tolerance and kind at with um your risk tolerance and kind of what you need to get started. um and of what you need to get started. um and of what you need to get started. um and a base hit getting a good solid house a base hit getting a good solid house a base hit getting a good solid house even if it’s I mean shoot we I just sold

[32:17] even if it’s I mean shoot we I just sold even if it’s I mean shoot we I just sold three town houses that would probably be three town houses that would probably be three town houses that would probably be perfect for this uh brand new perfect for this uh brand new perfect for this uh brand new construction uh they were at a pretty construction uh they were at a pretty construction uh they were at a pretty good price and what I had heard that good price and what I had heard that good price and what I had heard that they would rent for uh from uh a lender they would rent for uh from uh a lender they would rent for uh from uh a lender that had a rental in the same community that had a rental in the same community that had a rental in the same community I was like it’s actually like really not I was like it’s actually like really not I was like it’s actually like really not bad there was no HOA bad there was no HOA bad there was no HOA >> um that would actually be a phenomenal >> um that would actually be a phenomenal >> um that would actually be a phenomenal first and that you know that’s like

[32:37] first and that you know that’s like first and that you know that’s like probably the opposite of what you think probably the opposite of what you think probably the opposite of what you think of like when you think of like a good of like when you think of like a good of like when you think of like a good deal in investing like you know a brand deal in investing like you know a brand deal in investing like you know a brand new construction townhouse that you new construction townhouse that you new construction townhouse that you didn’t build like you know you just buy. didn’t build like you know you just buy. didn’t build like you know you just buy. >> Yeah. And some of the well some of the >> Yeah. And some of the well some of the >> Yeah. And some of the well some of the lending terms for those are really good lending terms for those are really good lending terms for those are really good because they’ll offer you know because they’ll offer you know because they’ll offer you know incentives for that. So yeah. And you incentives for that. So yeah. And you incentives for that. So yeah. And you got you know at least a year’s builder

[32:54] got you know at least a year’s builder got you know at least a year’s builder warranty and different things there too. warranty and different things there too. warranty and different things there too. So yeah um that yeah that could be So yeah um that yeah that could be So yeah um that yeah that could be pretty good as well. And we we’ve not pretty good as well. And we we’ve not pretty good as well. And we we’ve not really talked about the sales strategies really talked about the sales strategies really talked about the sales strategies um or anything, but um that was kind of um or anything, but um that was kind of um or anything, but um that was kind of like like you’re probably spending my like like you’re probably spending my like like you’re probably spending my mindset was like, well, we’re talking mindset was like, well, we’re talking mindset was like, well, we’re talking about building this income or this this about building this income or this this about building this income or this this rental portfolio that’s kind of like on rental portfolio that’s kind of like on rental portfolio that’s kind of like on the side um where you’re probably not

[33:14] the side um where you’re probably not the side um where you’re probably not spending most of your time focused on it spending most of your time focused on it spending most of your time focused on it where you’re probably spending most of where you’re probably spending most of where you’re probably spending most of your time focusing on building your your your time focusing on building your your your time focusing on building your your real estate sales business. Um and um real estate sales business. Um and um real estate sales business. Um and um yeah, kind of just living in the house yeah, kind of just living in the house yeah, kind of just living in the house that you’re going to keep as a rental.

[33:25] that you’re going to keep as a rental. that you’re going to keep as a rental. Um, but there’s also then like so, so Um, but there’s also then like so, so Um, but there’s also then like so, so again you were again more investing, again you were again more investing, again you were again more investing, more real estate sales. If somebody else more real estate sales. If somebody else more real estate sales. If somebody else found themselves uh really a successful found themselves uh really a successful found themselves uh really a successful agent, found themselves like not wanting agent, found themselves like not wanting agent, found themselves like not wanting to bother with um some of these to bother with um some of these to bother with um some of these strategies we’re talking about, like you strategies we’re talking about, like you strategies we’re talking about, like you know, somebody’s making $600,000 a year know, somebody’s making $600,000 a year know, somebody’s making $600,000 a year as an agent. Um they have uh you know, a as an agent. Um they have uh you know, a as an agent. Um they have uh you know, a wife. They they already have a nice

[33:52] wife. They they already have a nice wife. They they already have a nice house maybe that they’re not I’m not house maybe that they’re not I’m not house maybe that they’re not I’m not going to rent this thing out. Yeah. going to rent this thing out. Yeah. going to rent this thing out. Yeah. Yeah. Yeah. Yeah. >> Um and they want to get into investing. >> Um and they want to get into investing. >> Um and they want to get into investing. Um and they’re like, I’m not going to do Um and they’re like, I’m not going to do Um and they’re like, I’m not going to do house hacking. They probably would have house hacking. They probably would have house hacking. They probably would have some money to buy just a regular rental, some money to buy just a regular rental, some money to buy just a regular rental, which is possible, but you could also which is possible, but you could also which is possible, but you could also just jump ahead and go into the just jump ahead and go into the just jump ahead and go into the syndication world as an investor where syndication world as an investor where

[34:09] syndication world as an investor where um you wouldn’t necessarily need to uh um you wouldn’t necessarily need to uh um you wouldn’t necessarily need to uh learn everything. It’s a good idea to learn everything. It’s a good idea to learn everything. It’s a good idea to have a good base uh of understanding of have a good base uh of understanding of have a good base uh of understanding of how these things work because I mean, how these things work because I mean, how these things work because I mean, you want to vet your operators, you want you want to vet your operators, you want you want to vet your operators, you want to vet the deals somewhat. Um but uh the to vet the deals somewhat. Um but uh the to vet the deals somewhat. Um but uh the idea of a syndication is that you can idea of a syndication is that you can idea of a syndication is that you can get some great advantages um tax-wise uh get some great advantages um tax-wise uh get some great advantages um tax-wise uh being a limited partner um in in these.

[34:30] being a limited partner um in in these. being a limited partner um in in these. Um so maybe just quickly break that down Um so maybe just quickly break that down Um so maybe just quickly break that down for people. for people. for people. >> Yeah, I mean I think the goal um for >> Yeah, I mean I think the goal um for >> Yeah, I mean I think the goal um for everyone should be at least in my everyone should be at least in my everyone should be at least in my opinion would be to be an LP with a good opinion would be to be an LP with a good opinion would be to be an LP with a good operator because you get uh a lot of the operator because you get uh a lot of the operator because you get uh a lot of the benefits of owning the real estate benefits of owning the real estate benefits of owning the real estate without having all the headaches of without having all the headaches of without having all the headaches of managing it. you know, we have to have managing it. you know, we have to have managing it. you know, we have to have we we have an in-house property we we have an in-house property

[34:50] we we have an in-house property management company. We have employees. management company. We have employees. management company. We have employees. We’ve got to We’ve got to We’ve got to >> maintain that and enforce all the rules >> maintain that and enforce all the rules >> maintain that and enforce all the rules of all of our communities. We acquire we of all of our communities. We acquire we of all of our communities. We acquire we you know, we have to do all the comp you know, we have to do all the comp you know, we have to do all the comp like it’s it’s a lot. So, like it’s it’s a lot. So, like it’s it’s a lot. So, >> um if you have if you have that, like if >> um if you have if you have that, like if >> um if you have if you have that, like if I was an agent making $600,000 a year, I I was an agent making $600,000 a year, I I was an agent making $600,000 a year, I and I didn’t want to operate any real and I didn’t want to operate any real and I didn’t want to operate any real estate. That’s that’s 100% what I do.

[35:09] estate. That’s that’s 100% what I do. estate. That’s that’s 100% what I do. I’d find two or three really good I’d find two or three really good I’d find two or three really good operators um and then just invest in operators um and then just invest in operators um and then just invest in their deals. And like you’re saying, their deals. And like you’re saying, their deals. And like you’re saying, learn uh if you’d gone through this path learn uh if you’d gone through this path learn uh if you’d gone through this path that we’ kind of laid out then and you that we’ kind of laid out then and you that we’ kind of laid out then and you were an operator, then you would be able were an operator, then you would be able were an operator, then you would be able to kind of you have the skills made to to kind of you have the skills made to to kind of you have the skills made to to know if they’re actually like are to know if they’re actually like are to know if they’re actually like are they being really rosy on the they being really rosy on the they being really rosy on the projections? Are they good? Because the

[35:26] projections? Are they good? Because the projections? Are they good? Because the operator is the most important thing. operator is the most important thing. operator is the most important thing. >> Yeah. >> Yeah. >> Yeah. >> Um but uh if not, then you need to spend >> Um but uh if not, then you need to spend >> Um but uh if not, then you need to spend time learning that skill first before time learning that skill first before time learning that skill first before you spend any money with you. You hear you spend any money with you. You hear you spend any money with you. You hear horror stories all the time. So, you got horror stories all the time. So, you got horror stories all the time. So, you got to make sure that you to make sure that you to make sure that you >> we’re coming out of a bloody season um >> we’re coming out of a bloody season um >> we’re coming out of a bloody season um in that space where a lot of people um in that space where a lot of people um in that space where a lot of people um were caught with uh short-term debt at

[35:47] were caught with uh short-term debt at were caught with uh short-term debt at um low interest rates that turned into um low interest rates that turned into um low interest rates that turned into very high interest rates a lot higher very high interest rates a lot higher very high interest rates a lot higher than they projected. So, um definitely than they projected. So, um definitely than they projected. So, um definitely good to keep that in mind as well. But, good to keep that in mind as well. But, good to keep that in mind as well. But, uh yeah, vetting your operators like uh yeah, vetting your operators like uh yeah, vetting your operators like learning a decent amount about this learning a decent amount about this learning a decent amount about this space would be good. Listening to space would be good. Listening to space would be good. Listening to podcasts like this, we we talk about it podcasts like this, we we talk about it podcasts like this, we we talk about it multiple times. Um but yeah, I mean you multiple times. Um but yeah, I mean you multiple times. Um but yeah, I mean you get to to depreciate you get to you

[36:05] get to to depreciate you get to you get to to depreciate you get to you would do an accelerated appreciation on would do an accelerated appreciation on would do an accelerated appreciation on these properties um with a cost seg um these properties um with a cost seg um these properties um with a cost seg um and then as a real estate professional and then as a real estate professional and then as a real estate professional as a real estate ly that’s full-time um as a real estate ly that’s full-time um as a real estate ly that’s full-time um I can then take I can reduce my taxable I can then take I can reduce my taxable I can then take I can reduce my taxable income with that cost seg and I’ve done income with that cost seg and I’ve done income with that cost seg and I’ve done nothing really to [laughter] to make nothing really to [laughter] to make nothing really to [laughter] to make that all happen.

[36:24] that all happen. that all happen. >> Yeah. And so what what you’re talking >> Yeah. And so what what you’re talking >> Yeah. And so what what you’re talking about too it’s that is a possibility. about too it’s that is a possibility. about too it’s that is a possibility. Um, I’m not a CPA, so we have investors Um, I’m not a CPA, so we have investors Um, I’m not a CPA, so we have investors that do it as long as they qualify for that do it as long as they qualify for that do it as long as they qualify for that. So, your biggest thing and I feel that. So, your biggest thing and I feel that. So, your biggest thing and I feel like the disclaime disclaimer no one like the disclaime disclaimer no one like the disclaime disclaimer no one says is like check with your CPA because says is like check with your CPA because says is like check with your CPA because you got to make sure that you are like you got to make sure that you are like you got to make sure that you are like you have those qualifications.

[36:41] you have those qualifications. you have those qualifications. >> Yeah. >> Yeah. >> Yeah. >> Um, and you can take those the >> Um, and you can take those the >> Um, and you can take those the accelerated appreciation from the deals. accelerated appreciation from the deals. accelerated appreciation from the deals. >> Um, but yeah, that’s we pretty much do >> Um, but yeah, that’s we pretty much do >> Um, but yeah, that’s we pretty much do that on almost all of them. Uh, if we’re that on almost all of them. Uh, if we’re that on almost all of them. Uh, if we’re planning to resell them quickly than we planning to resell them quickly than we planning to resell them quickly than we don’t for obvious reasons, but uh yeah.

[36:54] don’t for obvious reasons, but uh yeah. don’t for obvious reasons, but uh yeah. >> Yeah. So, yeah. So, I mean, it’s uh it’s >> Yeah. So, yeah. So, I mean, it’s uh it’s >> Yeah. So, yeah. So, I mean, it’s uh it’s almost like it could you could almost almost like it could you could almost almost like it could you could almost consider it like a a realtor’s 401k. Um consider it like a a realtor’s 401k. Um consider it like a a realtor’s 401k. Um and uh you get some good passive income and uh you get some good passive income and uh you get some good passive income along the way. You get, you know, draws. along the way. You get, you know, draws. along the way. You get, you know, draws. Um and and then there’s usually an exit Um and and then there’s usually an exit Um and and then there’s usually an exit strategy refinancing the money back out strategy refinancing the money back out strategy refinancing the money back out to you. Uh you might still have to you. Uh you might still have to you. Uh you might still have ownership in the deal. Um or a sale down ownership in the deal. Um or a sale down

[37:16] ownership in the deal. Um or a sale down the line where you might earn a profit the line where you might earn a profit the line where you might earn a profit off their initial investment as well. off their initial investment as well. off their initial investment as well. >> Yep. That’s right. So yeah, but I mean >> Yep. That’s right. So yeah, but I mean >> Yep. That’s right. So yeah, but I mean these are all some examples of areas you these are all some examples of areas you these are all some examples of areas you can go. Um, and I hope this conversation can go. Um, and I hope this conversation can go. Um, and I hope this conversation was fun for for everybody. It’s a little was fun for for everybody. It’s a little was fun for for everybody. It’s a little bit different, but it was I thought it bit different, but it was I thought it bit different, but it was I thought it would be it was time to get Chase back would be it was time to get Chase back would be it was time to get Chase back into the studio. We we were around my into the studio. We we were around my into the studio. We we were around my island on our first episode, [laughter]

[37:35] island on our first episode, [laughter] island on our first episode, [laughter] but we’re in the studio now. So, thanks but we’re in the studio now. So, thanks but we’re in the studio now. So, thanks so much for coming, Jace. It’s always a so much for coming, Jace. It’s always a so much for coming, Jace. It’s always a pleasure. pleasure. pleasure. >> Yeah, I feel like we went kind of all >> Yeah, I feel like we went kind of all >> Yeah, I feel like we went kind of all over the place, but hopefully there was over the place, but hopefully there was over the place, but hopefully there was um some good nuggets in there for for um some good nuggets in there for for um some good nuggets in there for for people.

[37:45] people. people. >> For sure. All right. >> For sure. All right. >> For sure. All right. >> Thanks. >> Thanks. >> Thanks. >> Peace. >> Peace. >> Peace. Thanks for listening to the REI Agent. Thanks for listening to the REI Agent. Thanks for listening to the REI Agent. >> If you enjoyed this episode, hit >> If you enjoyed this episode, hit >> If you enjoyed this episode, hit subscribe to catch new shows every week. subscribe to catch new shows every week. subscribe to catch new shows every week. >> Visit REI agent.com for more content. >> Visit REI agent.com for more content. >> Visit REI agent.com for more content. >> Until next time, keep building the life >> Until next time, keep building the life >> Until next time, keep building the life you want.

[37:59] you want. you want. >> All content in the show is not >> All content in the show is not >> All content in the show is not investment advice or mental health investment advice or mental health investment advice or mental health therapy. It is intended for therapy. It is intended for therapy. It is intended for entertainment purposes [music]