From Broke Beginnings to True Freedom Through Smart Investing with Adam Balsinger

[0:03] Welcome back to the REI Agent. We are Welcome back to the REI Agent. We are Welcome back to the REI Agent. We are here with Adam Balszinger. Adam, thanks here with Adam Balszinger. Adam, thanks here with Adam Balszinger. Adam, thanks so much for joining us. so much for joining us. so much for joining us. >> Thank you for having me. I appreciate >> Thank you for having me. I appreciate >> Thank you for having me. I appreciate the invitation. the invitation. the invitation. >> Now, you’re you you are in South >> Now, you’re you you are in South >> Now, you’re you you are in South Carolina, but I’m noticing you’re Carolina, but I’m noticing you’re Carolina, but I’m noticing you’re wearing a sweater. Is it is it chilly wearing a sweater. Is it is it chilly wearing a sweater. Is it is it chilly where you’re at? Uh, you know, man, it’s where you’re at? Uh, you know, man, it’s where you’re at? Uh, you know, man, it’s uh what? We’re two weeks away from uh what? We’re two weeks away from uh what? We’re two weeks away from Christmas and I’m like one of those

[0:22] Christmas and I’m like one of those Christmas and I’m like one of those weirdos that loves Christmas. So, I got weirdos that loves Christmas. So, I got weirdos that loves Christmas. So, I got my Santa on a unicorn my Santa on a unicorn my Santa on a unicorn >> flying through outer space shirt. Uh, I >> flying through outer space shirt. Uh, I >> flying through outer space shirt. Uh, I have a 5-year-old and a three-year-old. have a 5-year-old and a three-year-old. have a 5-year-old and a three-year-old. They love Christmas, too. So, we we They love Christmas, too. So, we we They love Christmas, too. So, we we frequently uh if you see me during the frequently uh if you see me during the frequently uh if you see me during the month of December, I probably have like month of December, I probably have like month of December, I probably have like some kind of Christmas ugliness some kind of Christmas ugliness some kind of Christmas ugliness ridiculousness that I’m wearing. I I ridiculousness that I’m wearing. I I ridiculousness that I’m wearing. I I host a um a meetup here in the greater

[0:49] host a um a meetup here in the greater host a um a meetup here in the greater Charlotte area and it was last night and Charlotte area and it was last night and Charlotte area and it was last night and uh I advertised it as like ugly holiday uh I advertised it as like ugly holiday uh I advertised it as like ugly holiday themed and I wore my fleece onesie themed and I wore my fleece onesie themed and I wore my fleece onesie pajama set uh like red and and white pajama set uh like red and and white pajama set uh like red and and white polka dots. I was like all decked out. polka dots. I was like all decked out. polka dots. I was like all decked out. Um so yeah, it’s a little chilly this Um so yeah, it’s a little chilly this Um so yeah, it’s a little chilly this time of year in in the Charlotte area.

[1:10] time of year in in the Charlotte area. time of year in in the Charlotte area. >> You’re you’re Yeah, you’re north. You’re >> You’re you’re Yeah, you’re north. You’re >> You’re you’re Yeah, you’re north. You’re further north. So, not quite getting further north. So, not quite getting further north. So, not quite getting down to the alligator gator gator down to the alligator gator gator down to the alligator gator gator territory, right? territory, right? territory, right? >> Yeah. Yeah. Yeah. But I’m from the >> Yeah. Yeah. Yeah. But I’m from the >> Yeah. Yeah. Yeah. But I’m from the Northeast and spent a lot of time like Northeast and spent a lot of time like Northeast and spent a lot of time like several years in Chicago um and uh New several years in Chicago um and uh New several years in Chicago um and uh New York um New York State prior to getting York um New York State prior to getting York um New York State prior to getting into real estate. Like I had been in um into real estate. Like I had been in um into real estate. Like I had been in um direct sales in the direct sales

[1:31] direct sales in the direct sales direct sales in the direct sales business before. um little bit of a business before. um little bit of a business before. um little bit of a little bit of multi-level marketing little bit of multi-level marketing little bit of multi-level marketing maybe vibes to it, but um you know, I’ve maybe vibes to it, but um you know, I’ve maybe vibes to it, but um you know, I’ve always been really entrepreneurial and always been really entrepreneurial and always been really entrepreneurial and so I spent a lot of years um Matias so I spent a lot of years um Matias so I spent a lot of years um Matias doing doortodoor and B2B sales in New doing doortodoor and B2B sales in New doing doortodoor and B2B sales in New York State and in Chicago and Detroit.

[1:51] York State and in Chicago and Detroit. York State and in Chicago and Detroit. Um so it’s pretty it’s pretty hard for Um so it’s pretty it’s pretty hard for Um so it’s pretty it’s pretty hard for me to like be really cold cuz I was in me to like be really cold cuz I was in me to like be really cold cuz I was in Chicago and like -20 windchill like Chicago and like -20 windchill like Chicago and like -20 windchill like shleing around the city. uh walking in shleing around the city. uh walking in shleing around the city. uh walking in trying to sell people copy paper off the trying to sell people copy paper off the trying to sell people copy paper off the street with no appointment. So uh yeah, street with no appointment. So uh yeah, street with no appointment. So uh yeah, anyway, I digress.

[2:09] anyway, I digress. anyway, I digress. >> Yeah. No, I’m I want to get into your >> Yeah. No, I’m I want to get into your >> Yeah. No, I’m I want to get into your story. So tell us a bird’s eye view of story. So tell us a bird’s eye view of story. So tell us a bird’s eye view of of who you are, what you do in real of who you are, what you do in real of who you are, what you do in real estate right now. estate right now. estate right now. >> Yeah. So I am a a real estate investor, >> Yeah. So I am a a real estate investor, >> Yeah. So I am a a real estate investor, a full-time real estate investor. Um I a full-time real estate investor. Um I a full-time real estate investor. Um I got started in real estate in 2014 as an got started in real estate in 2014 as an got started in real estate in 2014 as an investor, like broke, you know, no investor, like broke, you know, no investor, like broke, you know, no money, no real sense of direction. I had money, no real sense of direction. I had money, no real sense of direction. I had shut down my direct sales business like

[2:35] shut down my direct sales business like shut down my direct sales business like I don’t know a year or two prior. I was I don’t know a year or two prior. I was I don’t know a year or two prior. I was still trying to figure out like what my still trying to figure out like what my still trying to figure out like what my next move was going to be. Um you know I next move was going to be. Um you know I next move was going to be. Um you know I I’d mentioned I’d always been I’d mentioned I’d always been I’d mentioned I’d always been entrepreneurial. So I wound up like just entrepreneurial. So I wound up like just entrepreneurial. So I wound up like just doing some sales jobs here and there um doing some sales jobs here and there um doing some sales jobs here and there um while I tried to figure out my next move while I tried to figure out my next move while I tried to figure out my next move and and that move wound up being real and and that move wound up being real and and that move wound up being real estate. Um you know at the time when I estate. Um you know at the time when I estate. Um you know at the time when I got started no money like bad credit.

[2:56] got started no money like bad credit. got started no money like bad credit. you know, I was renting a room from like you know, I was renting a room from like you know, I was renting a room from like a frat buddy from college basically. Um, a frat buddy from college basically. Um, a frat buddy from college basically. Um, and you know, no network, no experience, and you know, no network, no experience, and you know, no network, no experience, like no silver spoon and just kind of like no silver spoon and just kind of like no silver spoon and just kind of like dove in and got started and figured like dove in and got started and figured like dove in and got started and figured it out. Um, I’ve it out. Um, I’ve it out. Um, I’ve >> What made you take that jump? I mean, >> What made you take that jump? I mean, >> What made you take that jump? I mean, what what brought you to real estate?

[3:15] what what brought you to real estate? what what brought you to real estate? Um, so I I’m very fortunate in that like Um, so I I’m very fortunate in that like Um, so I I’m very fortunate in that like I come from a very bluecollar background I come from a very bluecollar background I come from a very bluecollar background on both like my mom and my dad’s side of on both like my mom and my dad’s side of on both like my mom and my dad’s side of the family, but both my parents wound up the family, but both my parents wound up the family, but both my parents wound up being the first in their respective being the first in their respective being the first in their respective families to go to college. So I got to families to go to college. So I got to families to go to college. So I got to witness kind of like my parents sherking witness kind of like my parents sherking witness kind of like my parents sherking or or or like taking a different path or or or like taking a different path or or or like taking a different path than their family historically had than their family historically had than their family historically had taken. um you know going into more

[3:45] taken. um you know going into more taken. um you know going into more professional white collar kind of jobs professional white collar kind of jobs professional white collar kind of jobs and subsequently you know my family I’m and subsequently you know my family I’m and subsequently you know my family I’m an only child we had more around the an only child we had more around the an only child we had more around the holidays like took better trips cooler holidays like took better trips cooler holidays like took better trips cooler trips like did more stuff kind of than trips like did more stuff kind of than trips like did more stuff kind of than like a lot of our family that didn’t like a lot of our family that didn’t like a lot of our family that didn’t make some of those choices my aunts and make some of those choices my aunts and make some of those choices my aunts and uncles my cousins right um so that was uncles my cousins right um so that was uncles my cousins right um so that was awesome to to be able to kind of witness awesome to to be able to kind of witness awesome to to be able to kind of witness how those choices led to different

[4:10] how those choices led to different how those choices led to different professions which then led to different professions which then led to different professions which then led to different incomes and like right different incomes and like right different incomes and like right different requirements then too from a like time requirements then too from a like time requirements then too from a like time and like investment of life into their and like investment of life into their and like investment of life into their professions. Um so like kind of middle professions. Um so like kind of middle professions. Um so like kind of middle income right which was different cuz income right which was different cuz income right which was different cuz when I would visit my grandparents it when I would visit my grandparents it when I would visit my grandparents it was in a trailer park. Um but so had was in a trailer park. Um but so had was in a trailer park. Um but so had more saw my dad and my mom be able to more saw my dad and my mom be able to more saw my dad and my mom be able to kind of change the family tree but at

[4:38] kind of change the family tree but at kind of change the family tree but at the same time like my dad commuted an the same time like my dad commuted an the same time like my dad commuted an hour to an hour and a half like to and hour to an hour and a half like to and hour to an hour and a half like to and from work every single day you know when from work every single day you know when from work every single day you know when I was awake in the morning getting ready I was awake in the morning getting ready I was awake in the morning getting ready for school like I didn’t even see him in for school like I didn’t even see him in for school like I didn’t even see him in the morning like he was gone and he the morning like he was gone and he the morning like he was gone and he would get home like 6:37 we’d have would get home like 6:37 we’d have would get home like 6:37 we’d have dinner and I would kind of go to bed and dinner and I would kind of go to bed and dinner and I would kind of go to bed and that was a lot of like the younger years that was a lot of like the younger years that was a lot of like the younger years of my life and as I got older and

[5:01] of my life and as I got older and of my life and as I got older and started to get involved in like music started to get involved in like music started to get involved in like music and sports and whatever. Um, you know, and sports and whatever. Um, you know, and sports and whatever. Um, you know, he would do his best to to be able to he would do his best to to be able to he would do his best to to be able to show up and be at things to support me. show up and be at things to support me. show up and be at things to support me. Um, but and I’ve talked about this on Um, but and I’ve talked about this on Um, but and I’ve talked about this on other podcasts and openly before too, other podcasts and openly before too, other podcasts and openly before too, like baseball was like my my best sport.

[5:17] like baseball was like my my best sport. like baseball was like my my best sport. I was not very gifted athletically. Like I was not very gifted athletically. Like I was not very gifted athletically. Like I tried really hard, like I made the I tried really hard, like I made the I tried really hard, like I made the varsity team, but I was I was like varsity team, but I was I was like varsity team, but I was I was like average at best, right? Um, but I liked average at best, right? Um, but I liked average at best, right? Um, but I liked baseball. Like that was my sport. And so baseball. Like that was my sport. And so baseball. Like that was my sport. And so my dad did a great job of like being at my dad did a great job of like being at my dad did a great job of like being at most of the games, but he was always off most of the games, but he was always off most of the games, but he was always off to the side by himself. And a lot of to the side by himself. And a lot of to the side by himself. And a lot of times like my dad’s his CPA, like times like my dad’s his CPA, like times like my dad’s his CPA, like accounting, finance, like that’s his

[5:39] accounting, finance, like that’s his accounting, finance, like that’s his background, tax. So he’d be Matias like background, tax. So he’d be Matias like background, tax. So he’d be Matias like on his computer like looking at on his computer like looking at on his computer like looking at spreadsheets or like going through spreadsheets or like going through spreadsheets or like going through spreadsheets and like at the game, spreadsheets and like at the game, spreadsheets and like at the game, right? You know, I’m like up to bat and right? You know, I’m like up to bat and right? You know, I’m like up to bat and like so, you know, like and again like like so, you know, like and again like like so, you know, like and again like very fortunate like I love my parents.

[5:56] very fortunate like I love my parents. very fortunate like I love my parents. like my dad is like a a like hero of like my dad is like a a like hero of like my dad is like a a like hero of mine, right? Um because of of what he mine, right? Um because of of what he mine, right? Um because of of what he had to go through to put himself through had to go through to put himself through had to go through to put himself through college or whatever. Um but dude, those college or whatever. Um but dude, those college or whatever. Um but dude, those things stuck with me and I kind of things stuck with me and I kind of things stuck with me and I kind of always wanted to have the ability as I always wanted to have the ability as I always wanted to have the ability as I got older to be like present, like got older to be like present, like got older to be like present, like really really present with my kids and really really present with my kids and really really present with my kids and my family. And I also had a unique my family. And I also had a unique my family. And I also had a unique experience where I got in a lot of

[6:21] experience where I got in a lot of experience where I got in a lot of trouble when I was in high school and my trouble when I was in high school and my trouble when I was in high school and my parents decided they pulled me out of parents decided they pulled me out of parents decided they pulled me out of public school when I was in 10th grade public school when I was in 10th grade public school when I was in 10th grade and sent me to a private school. And the and sent me to a private school. And the and sent me to a private school. And the private school that I went to like where private school that I went to like where private school that I went to like where I grew up was like very bluecollar I grew up was like very bluecollar I grew up was like very bluecollar outside of Philadelphia like hour outside of Philadelphia like hour outside of Philadelphia like hour outside like dude I had a cow pasture outside like dude I had a cow pasture outside like dude I had a cow pasture across the street from my house. Like I across the street from my house. Like I across the street from my house. Like I would go out in the front like you I

[6:42] would go out in the front like you I would go out in the front like you I grew up in the 80s so it was like go out grew up in the 80s so it was like go out grew up in the 80s so it was like go out and play, right? Like we were always and play, right? Like we were always and play, right? Like we were always mandated by mom like get out of the mandated by mom like get out of the mandated by mom like get out of the house, go play. Dude, I’d be in my front house, go play. Dude, I’d be in my front house, go play. Dude, I’d be in my front yard hitting golf balls into like the yard hitting golf balls into like the yard hitting golf balls into like the cow pasture to pass time. Um but so when cow pasture to pass time. Um but so when cow pasture to pass time. Um but so when I went to this private school, like I went to this private school, like I went to this private school, like there were kids from more affluent there were kids from more affluent there were kids from more affluent areas, like kids from Philly, from like areas, like kids from Philly, from like areas, like kids from Philly, from like nice sections of Philly, people from all

[7:04] nice sections of Philly, people from all nice sections of Philly, people from all over the country and even international over the country and even international over the country and even international students being sent to this school. And students being sent to this school. And students being sent to this school. And it opened my eyes up to people living it opened my eyes up to people living it opened my eyes up to people living life at a different level. Um, I became life at a different level. Um, I became life at a different level. Um, I became really good friends. Um, and dude, I really good friends. Um, and dude, I really good friends. Um, and dude, I have like no friends from from like have like no friends from from like have like no friends from from like school days really except for two. And school days really except for two. And school days really except for two. And both of these guys I met at this private both of these guys I met at this private both of these guys I met at this private school. Um, you know, one of them is school. Um, you know, one of them is school. Um, you know, one of them is like my best friend. His dad is like a a

[7:30] like my best friend. His dad is like a a like my best friend. His dad is like a a surgeon. He’s actually a partner at one surgeon. He’s actually a partner at one surgeon. He’s actually a partner at one of the bigger orthopedic surgery of the bigger orthopedic surgery of the bigger orthopedic surgery hospitals in the city of Philadelphia. hospitals in the city of Philadelphia. hospitals in the city of Philadelphia. Um, so these people were on a whole Um, so these people were on a whole Um, so these people were on a whole different income level, dude, than than different income level, dude, than than different income level, dude, than than my family was. my family was. my family was. >> And that’s cool, right? Like they were >> And that’s cool, right? Like they were >> And that’s cool, right? Like they were taking cooler, like I mentioned, I was taking cooler, like I mentioned, I was taking cooler, like I mentioned, I was taking better trips than my family.

[7:49] taking better trips than my family. taking better trips than my family. Well, their trips like made ours look Well, their trips like made ours look Well, their trips like made ours look like we were peasants. You know what I’m like we were peasants. You know what I’m like we were peasants. You know what I’m saying? Like, you know, he’s gifted an saying? Like, you know, he’s gifted an saying? Like, you know, he’s gifted an RS4 when he graduated from college. Like RS4 when he graduated from college. Like RS4 when he graduated from college. Like that’s an $85,000 sports car back in that’s an $85,000 sports car back in that’s an $85,000 sports car back in like the early 2000s, which is when we like the early 2000s, which is when we like the early 2000s, which is when we were graduating from college. So, like, were graduating from college. So, like, were graduating from college. So, like, dude, totally different lifestyle. But, dude, totally different lifestyle. But, dude, totally different lifestyle. But, but while my dad was at the game off to but while my dad was at the game off to but while my dad was at the game off to the side, like on his computer or

[8:13] the side, like on his computer or the side, like on his computer or digging through spreadsheets, my buddy’s digging through spreadsheets, my buddy’s digging through spreadsheets, my buddy’s dad was almost never there. So, I I dad was almost never there. So, I I dad was almost never there. So, I I think at an earlier age than most of us think at an earlier age than most of us think at an earlier age than most of us tend to think about these kinds of tend to think about these kinds of tend to think about these kinds of things. I had these kind of seeds things. I had these kind of seeds things. I had these kind of seeds planted in my mind of like money, planted in my mind of like money, planted in my mind of like money, wealth, investment of time, right? How wealth, investment of time, right? How wealth, investment of time, right? How those things all kind of like play those things all kind of like play those things all kind of like play together. And so I really kind of always together. And so I really kind of always together. And so I really kind of always wanted to have more control over like my

[8:38] wanted to have more control over like my wanted to have more control over like my schedule and my life. And the idea of schedule and my life. And the idea of schedule and my life. And the idea of like I was never one of those kids. It like I was never one of those kids. It like I was never one of those kids. It was like what do you want to do when you was like what do you want to do when you was like what do you want to do when you oh I want to be a like and knew it right oh I want to be a like and knew it right oh I want to be a like and knew it right away, right? Like my thought was always away, right? Like my thought was always away, right? Like my thought was always I want to make a lot of money and like I I want to make a lot of money and like I I want to make a lot of money and like I want to like do what I want to do want to like do what I want to do want to like do what I want to do whenever I want to do it. And that’s whenever I want to do it. And that’s whenever I want to do it. And that’s what kind of led me down that what kind of led me down that what kind of led me down that entrepreneurial path and got me started

[8:58] entrepreneurial path and got me started entrepreneurial path and got me started in in the the the sales the direct sales in in the the the sales the direct sales in in the the the sales the direct sales business. And you know, man, we learn business. And you know, man, we learn business. And you know, man, we learn things. We meet people. Life takes us things. We meet people. Life takes us things. We meet people. Life takes us in, you know, teen different directions in, you know, teen different directions in, you know, teen different directions with uh with detours all over the place. with uh with detours all over the place. with uh with detours all over the place. And right after I shut down my business, And right after I shut down my business, And right after I shut down my business, I was still living in Chicago. And I was I was still living in Chicago. And I was I was still living in Chicago. And I was I had two roommates. We had just rented I had two roommates. We had just rented I had two roommates. We had just rented a place um in a pretty nice section of a place um in a pretty nice section of

[9:22] a place um in a pretty nice section of Chicago. Like I had just shut my Chicago. Like I had just shut my Chicago. Like I had just shut my business down, so I was doing pretty business down, so I was doing pretty business down, so I was doing pretty well financially at that time, like from well financially at that time, like from well financially at that time, like from the business before it was shut down. the business before it was shut down. the business before it was shut down. Um, so we lived in a pretty decent place Um, so we lived in a pretty decent place Um, so we lived in a pretty decent place from being like a, you know, like young from being like a, you know, like young from being like a, you know, like young 20some like punk or whatever. And after 20some like punk or whatever. And after 20some like punk or whatever. And after I shut my business down, I had a lot I shut my business down, I had a lot I shut my business down, I had a lot more free time on my hands. And so this more free time on my hands. And so this more free time on my hands. And so this this place that I was renting was a ble

[9:44] this place that I was renting was a ble this place that I was renting was a ble apartment, three bed, two bath. And just apartment, three bed, two bath. And just apartment, three bed, two bath. And just we had heard from talking to the other we had heard from talking to the other we had heard from talking to the other people that were living there. We were people that were living there. We were people that were living there. We were the first people to fill our unit. Um, the first people to fill our unit. Um, the first people to fill our unit. Um, but we all met the neighbors, whatever. but we all met the neighbors, whatever. but we all met the neighbors, whatever. And somehow we found out that the guy And somehow we found out that the guy And somehow we found out that the guy that was the landlord that owned the that was the landlord that owned the that was the landlord that owned the property we were renting from that he property we were renting from that he property we were renting from that he had actually bought that property and it had actually bought that property and it had actually bought that property and it was a total mess when he bought it. He

[10:06] was a total mess when he bought it. He was a total mess when he bought it. He bought it from this elderly woman who bought it from this elderly woman who bought it from this elderly woman who just couldn’t keep up with it. Um it was just couldn’t keep up with it. Um it was just couldn’t keep up with it. Um it was a big property and what he was able to a big property and what he was able to a big property and what he was able to do was to then take that single family do was to then take that single family do was to then take that single family that big single family residence and that big single family residence and that big single family residence and chop it up into four apartment units. Um chop it up into four apartment units. Um chop it up into four apartment units. Um all of which were like three bed, two all of which were like three bed, two all of which were like three bed, two bath. Um, and you know, this is bath. Um, and you know, this is bath. Um, and you know, this is probably, dude, like 2010, 2011, and probably, dude, like 2010, 2011, and probably, dude, like 2010, 2011, and we’re renting this place for like $2,200

[10:32] we’re renting this place for like $2,200 we’re renting this place for like $2,200 a month. And I was in the downstairs a month. And I was in the downstairs a month. And I was in the downstairs unit. So, the upstairs unit was nicer unit. So, the upstairs unit was nicer unit. So, the upstairs unit was nicer and rented for like $2,400. So, I’m and rented for like $2,400. So, I’m and rented for like $2,400. So, I’m sitting there and I’m thinking like, sitting there and I’m thinking like, sitting there and I’m thinking like, wait a second. Like, this guy’s making wait a second. Like, this guy’s making wait a second. Like, this guy’s making like 9 grand a month off of this like 9 grand a month off of this like 9 grand a month off of this property. Like, how did like like how property. Like, how did like like how property. Like, how did like like how did that happen, you know? like and that did that happen, you know? like and that did that happen, you know? like and that just dude it just got the wheels just dude it just got the wheels just dude it just got the wheels turning, you know. Um so I wound up

[10:56] turning, you know. Um so I wound up turning, you know. Um so I wound up reaching out to the property manager and reaching out to the property manager and reaching out to the property manager and was like I’d love to talk to the owner, was like I’d love to talk to the owner, was like I’d love to talk to the owner, you know, like nothing there’s nothing you know, like nothing there’s nothing you know, like nothing there’s nothing wrong like I just would love to like wrong like I just would love to like wrong like I just would love to like learn about real estate and like how he learn about real estate and like how he learn about real estate and like how he did this. And so I took the guy to did this. And so I took the guy to did this. And so I took the guy to lunch. Like the property manager helped lunch. Like the property manager helped lunch. Like the property manager helped coordinate this meeting and um you know coordinate this meeting and um you know coordinate this meeting and um you know I left this meeting like totally I left this meeting like totally I left this meeting like totally swimming in knowledge that like I had no

[11:20] swimming in knowledge that like I had no swimming in knowledge that like I had no idea really what the heck the guy was idea really what the heck the guy was idea really what the heck the guy was talking about. But I left there thinking talking about. But I left there thinking talking about. But I left there thinking like what what a great way to create a like what what a great way to create a like what what a great way to create a really significant amount of income for really significant amount of income for really significant amount of income for yourself and have like a ton of free yourself and have like a ton of free yourself and have like a ton of free time. Like this is exactly what I time. Like this is exactly what I time. Like this is exactly what I wanted, right? And so that got the wanted, right? And so that got the wanted, right? And so that got the wheels turning. And then dude, ever so wheels turning. And then dude, ever so wheels turning. And then dude, ever so like that was like when I got bit, I like that was like when I got bit, I like that was like when I got bit, I guess, right, by the real estate bug.

[11:42] guess, right, by the real estate bug. guess, right, by the real estate bug. And then I didn’t really do anything And then I didn’t really do anything And then I didn’t really do anything about it for a like probably two years about it for a like probably two years about it for a like probably two years when I moved back to Philly and was like when I moved back to Philly and was like when I moved back to Philly and was like still trying to figure out what the heck still trying to figure out what the heck still trying to figure out what the heck I was doing. I had a sales job that had I was doing. I had a sales job that had I was doing. I had a sales job that had a lot of windshield time. I was selling a lot of windshield time. I was selling a lot of windshield time. I was selling software out of my um it was a remote software out of my um it was a remote software out of my um it was a remote job, so I was driving all over like job, so I was driving all over like job, so I was driving all over like southeastern Pennsylvania and south New southeastern Pennsylvania and south New southeastern Pennsylvania and south New Jersey to go hit my uh my territory. And

[12:05] Jersey to go hit my uh my territory. And Jersey to go hit my uh my territory. And I just I heard like one of those radio I just I heard like one of those radio I just I heard like one of those radio advertisements like learn how to flip advertisements like learn how to flip advertisements like learn how to flip houses and I went and kind of the rest houses and I went and kind of the rest houses and I went and kind of the rest is history. But um you know I started is history. But um you know I started is history. But um you know I started out flipping houses. I wound up I out flipping houses. I wound up I out flipping houses. I wound up I flipped houses for two or three years. flipped houses for two or three years.

[12:19] flipped houses for two or three years. >> You did a number of those flips, right? >> You did a number of those flips, right? >> You did a number of those flips, right? >> Well, so I flipped like I flipped for >> Well, so I flipped like I flipped for >> Well, so I flipped like I flipped for like two or three years kind of that was like two or three years kind of that was like two or three years kind of that was the only thing that I was doing and I the only thing that I was doing and I the only thing that I was doing and I was sourcing all my leads from um the was sourcing all my leads from um the was sourcing all my leads from um the MLS and from wholesalers. I was doing MLS and from wholesalers. I was doing MLS and from wholesalers. I was doing like three, four, five a year or like three, four, five a year or like three, four, five a year or something like that. Enough like to put something like that. Enough like to put something like that. Enough like to put some money in my pocket, but I wasn’t some money in my pocket, but I wasn’t some money in my pocket, but I wasn’t really like making money, you know, like

[12:40] really like making money, you know, like really like making money, you know, like I was kind of covering expenses, trying I was kind of covering expenses, trying I was kind of covering expenses, trying to figure out how to do more volume. And to figure out how to do more volume. And to figure out how to do more volume. And I wound up kind of throwing some I wound up kind of throwing some I wound up kind of throwing some resources at learning direct to seller resources at learning direct to seller resources at learning direct to seller marketing because prior to that, I was marketing because prior to that, I was marketing because prior to that, I was relying 100% on wholesalers and real relying 100% on wholesalers and real relying 100% on wholesalers and real estate agents to send me deals, estate agents to send me deals, estate agents to send me deals, >> right? And so the thought process with >> right? And so the thought process with >> right? And so the thought process with the direct to seller marketing was like the direct to seller marketing was like the direct to seller marketing was like I’m going to do this marketing and then

[13:01] I’m going to do this marketing and then I’m going to do this marketing and then I’m just going to buy these deals, you I’m just going to buy these deals, you I’m just going to buy these deals, you know, the like any lead that comes know, the like any lead that comes know, the like any lead that comes through like awesome. And um what through like awesome. And um what through like awesome. And um what happened in reality was a lot of the happened in reality was a lot of the happened in reality was a lot of the vast majority of the conversations I was vast majority of the conversations I was vast majority of the conversations I was having like I didn’t like the deal. Like having like I didn’t like the deal. Like having like I didn’t like the deal. Like I didn’t like the math the way that it I didn’t like the math the way that it I didn’t like the math the way that it pencled like whatever. But and then like pencled like whatever. But and then like pencled like whatever. But and then like you know like you’re in the algorithm, you know like you’re in the algorithm, you know like you’re in the algorithm, you’re on Facebook, you’re learn you’re

[13:22] you’re on Facebook, you’re learn you’re you’re on Facebook, you’re learn you’re googling this, googling that and like googling this, googling that and like googling this, googling that and like wholesaling started to like hit my feed, wholesaling started to like hit my feed, wholesaling started to like hit my feed, right? Um not even knowing that this is right? Um not even knowing that this is right? Um not even knowing that this is like algorithm driven at the time. I like algorithm driven at the time. I like algorithm driven at the time. I know that now. Um but so you know I kind know that now. Um but so you know I kind know that now. Um but so you know I kind of like then was introduced to this of like then was introduced to this of like then was introduced to this concept of wholesaling and stumbled concept of wholesaling and stumbled concept of wholesaling and stumbled through a couple wholesale deals from through a couple wholesale deals from through a couple wholesale deals from leads that I had, you know, generated leads that I had, you know, generated leads that I had, you know, generated from direct to seller marketing. Uh the

[13:46] from direct to seller marketing. Uh the from direct to seller marketing. Uh the first few were a total disaster. I made first few were a total disaster. I made first few were a total disaster. I made almost no money on my first flip. Like almost no money on my first flip. Like almost no money on my first flip. Like the buyer was actually arrested and like the buyer was actually arrested and like the buyer was actually arrested and like we we had to get a power of attorney we we had to get a power of attorney we we had to get a power of attorney executed so that his mom could close on executed so that his mom could close on executed so that his mom could close on his behalf at the settlement table and I his behalf at the settlement table and I his behalf at the settlement table and I made like $470ome made like $470ome made like $470ome dollars on that deal. Like I was calling dollars on that deal. Like I was calling dollars on that deal. Like I was calling the local prisons cuz we didn’t know the local prisons cuz we didn’t know the local prisons cuz we didn’t know where he was to try to locate this guy.

[14:09] where he was to try to locate this guy. where he was to try to locate this guy. Like it was so much work in hindsight Like it was so much work in hindsight Like it was so much work in hindsight for less than $500. Um, but I wound up for less than $500. Um, but I wound up for less than $500. Um, but I wound up doing a really piece of cake wholesale doing a really piece of cake wholesale doing a really piece of cake wholesale deal that came in off of a bandit sign, deal that came in off of a bandit sign, deal that came in off of a bandit sign, right? Like those we buy houses signs right? Like those we buy houses signs right? Like those we buy houses signs that you see up. Um, like $25,000 that you see up. Um, like $25,000 that you see up. Um, like $25,000 profit, you know, closed in 30 days, profit, you know, closed in 30 days, profit, you know, closed in 30 days, like super simple. And I was like, what like super simple. And I was like, what like super simple. And I was like, what the heck am I wholesaling houses or the heck am I wholesaling houses or the heck am I wholesaling houses or excuse me, what the heck am I doing

[14:34] excuse me, what the heck am I doing excuse me, what the heck am I doing these fix and flips for? Taking 6 these fix and flips for? Taking 6 these fix and flips for? Taking 6 months, 9 months, 12 months. Like Philly months, 9 months, 12 months. Like Philly months, 9 months, 12 months. Like Philly is old the city. Most of those houses is old the city. Most of those houses is old the city. Most of those houses were built like 1920, you know? So were built like 1920, you know? So were built like 1920, you know? So they’re all gut renovations. There was they’re all gut renovations. There was they’re all gut renovations. There was no such thing as a cosmetic renovation no such thing as a cosmetic renovation no such thing as a cosmetic renovation in Philly. Like you’re gutting it to the in Philly. Like you’re gutting it to the in Philly. Like you’re gutting it to the studs. All new plumbing, all new studs. All new plumbing, all new studs. All new plumbing, all new electric cuz it was all knob and tube, electric cuz it was all knob and tube, electric cuz it was all knob and tube, right? Like

[14:54] right? Like right? Like >> Mhm. >> Mhm. >> Mhm. >> So why am I doing these big gut >> So why am I doing these big gut >> So why am I doing these big gut renovations and dealing with contractors renovations and dealing with contractors renovations and dealing with contractors to make 30 or 40 grand? Like I can to make 30 or 40 grand? Like I can to make 30 or 40 grand? Like I can assign a contract and make 25. Like what assign a contract and make 25. Like what assign a contract and make 25. Like what am I do? So I transitioned my business am I do? So I transitioned my business am I do? So I transitioned my business completely to wholesale and then kind of completely to wholesale and then kind of completely to wholesale and then kind of focused on wholesaling for several focused on wholesaling for several focused on wholesaling for several years. So in those early like I would years. So in those early like I would years. So in those early like I would say first five or six years I wound up say first five or six years I wound up say first five or six years I wound up like combined flipped and wholesaliled

[15:20] like combined flipped and wholesaliled like combined flipped and wholesaliled over a hundred properties. Um but really over a hundred properties. Um but really over a hundred properties. Um but really dude I was doing all of it to go out and dude I was doing all of it to go out and dude I was doing all of it to go out and buy rental properties. buy rental properties. buy rental properties. >> Okay. And what was really happening was >> Okay. And what was really happening was >> Okay. And what was really happening was I was getting I was getting like blinded I was getting I was getting like blinded I was getting I was getting like blinded by the immediate profit potential for a by the immediate profit potential for a by the immediate profit potential for a wholesale or a flip. And I wasn’t wholesale or a flip. And I wasn’t wholesale or a flip. And I wasn’t actually like building a rental actually like building a rental actually like building a rental portfolio. I had kind of like portfolio. I had kind of like portfolio. I had kind of like accidentally stumbled into a couple

[15:42] accidentally stumbled into a couple accidentally stumbled into a couple doors over the years. Um but it wasn’t I doors over the years. Um but it wasn’t I doors over the years. Um but it wasn’t I wasn’t doing what the goal was to lead wasn’t doing what the goal was to lead wasn’t doing what the goal was to lead me to the freedom that I was after. You me to the freedom that I was after. You me to the freedom that I was after. You know what I’m saying? I got kind of know what I’m saying? I got kind of know what I’m saying? I got kind of caught up in the game. And so I started caught up in the game. And so I started caught up in the game. And so I started really focusing more on um like how do I really focusing more on um like how do I really focusing more on um like how do I grow a rental portfolio and how do I grow a rental portfolio and how do I grow a rental portfolio and how do I acquire units, right? And um that wound acquire units, right? And um that wound acquire units, right? And um that wound up leading me into commercial multif up leading me into commercial multif up leading me into commercial multif family apartment complexes and into the

[16:10] family apartment complexes and into the family apartment complexes and into the syndication space. syndication space. syndication space. >> And so like 16 into 17 was like >> And so like 16 into 17 was like >> And so like 16 into 17 was like transition out of wholesale. 17 was transition out of wholesale. 17 was transition out of wholesale. 17 was really when I started focusing on really when I started focusing on really when I started focusing on apartment syndication and I syndicated apartment syndication and I syndicated apartment syndication and I syndicated 10 apartment complexes like 8590 million 10 apartment complexes like 8590 million 10 apartment complexes like 8590 million worth of real estate from 17 to 2022. Um worth of real estate from 17 to 2022. Um worth of real estate from 17 to 2022. Um I’m no longer syndicating apartment I’m no longer syndicating apartment I’m no longer syndicating apartment complexes. I think that that segment of complexes. I think that that segment of complexes. I think that that segment of like the commercial real estate world is

[16:39] like the commercial real estate world is like the commercial real estate world is totally overheated and way too totally overheated and way too totally overheated and way too competitive right now. like I don’t like competitive right now. like I don’t like competitive right now. like I don’t like the fundamentals of a lot of commercial the fundamentals of a lot of commercial the fundamentals of a lot of commercial multif family at the at the moment. Um multif family at the at the moment. Um multif family at the at the moment. Um and I only have so much time in the day. and I only have so much time in the day. and I only have so much time in the day. Like I let go of my team. Like it’s back Like I let go of my team. Like it’s back Like I let go of my team. Like it’s back to just like Adam. Um so in 22 like but to just like Adam. Um so in 22 like but to just like Adam. Um so in 22 like but that all kind of happened in from 21 that all kind of happened in from 21 that all kind of happened in from 21 leading into 2022. I was having some leading into 2022. I was having some leading into 2022. I was having some second thoughts on the way that the

[17:02] second thoughts on the way that the second thoughts on the way that the syndication business model was really syndication business model was really syndication business model was really like working in real life. Like, and I like working in real life. Like, and I like working in real life. Like, and I think this will make sense for your think this will make sense for your think this will make sense for your audience because we’re all getting hit audience because we’re all getting hit audience because we’re all getting hit by like the gurus that are selling the by like the gurus that are selling the by like the gurus that are selling the programs that like life is going wealthy programs that like life is going wealthy programs that like life is going wealthy forever, right? Like, and so, you know, forever, right? Like, and so, you know, forever, right? Like, and so, you know, my personal experience in apartment my personal experience in apartment my personal experience in apartment syndication is that it it’s not as syndication is that it it’s not as syndication is that it it’s not as stable. Like, commercial real estate

[17:23] stable. Like, commercial real estate stable. Like, commercial real estate isn’t as stable and consistent as it’s isn’t as stable and consistent as it’s isn’t as stable and consistent as it’s as it’s made out to be. Um, it es and as it’s made out to be. Um, it es and as it’s made out to be. Um, it es and flows in my opinion like very similarly flows in my opinion like very similarly flows in my opinion like very similarly at different times of course um to at different times of course um to at different times of course um to residential real estate, right? And kind residential real estate, right? And kind residential real estate, right? And kind of like the the halftruth that gets of like the the halftruth that gets of like the the halftruth that gets people interested in commercial real people interested in commercial real people interested in commercial real estate a lot of times it’s like oh well estate a lot of times it’s like oh well estate a lot of times it’s like oh well the valuation isn’t based on comparable the valuation isn’t based on comparable the valuation isn’t based on comparable sales it’s based on the income that the

[17:48] sales it’s based on the income that the sales it’s based on the income that the property can generate property can generate property can generate >> and that is true kind of because you’re >> and that is true kind of because you’re >> and that is true kind of because you’re not using apple comps. Like what are the not using apple comps. Like what are the not using apple comps. Like what are the chances if I’m buying a 100 unit chances if I’m buying a 100 unit chances if I’m buying a 100 unit property that’s 80% two beds 10% one property that’s 80% two beds 10% one property that’s 80% two beds 10% one beds and 10% studios that I’m going to beds and 10% studios that I’m going to beds and 10% studios that I’m going to find an apple toapple comp. like it’s find an apple toapple comp. like it’s find an apple toapple comp. like it’s almost non-existent, right? But what almost non-existent, right? But what almost non-existent, right? But what happens is you wind up with a prevailing happens is you wind up with a prevailing happens is you wind up with a prevailing cap rate that you’ll see across the

[18:13] cap rate that you’ll see across the cap rate that you’ll see across the market. And so you’re not having a market. And so you’re not having a market. And so you’re not having a comparable sale, but the sales determine comparable sale, but the sales determine comparable sale, but the sales determine the cap rate at which all properties the cap rate at which all properties the cap rate at which all properties transact, right? 5% to 6 and a quarter transact, right? 5% to 6 and a quarter transact, right? 5% to 6 and a quarter or four and a half to five and a half or or four and a half to five and a half or or four and a half to five and a half or whatever, right? So the cap rate is kind whatever, right? So the cap rate is kind whatever, right? So the cap rate is kind of a derivative, if you will, of the of a derivative, if you will, of the of a derivative, if you will, of the comparable sales. So this idea of like, comparable sales. So this idea of like, comparable sales. So this idea of like, oh, it doesn’t really matter what oh, it doesn’t really matter what oh, it doesn’t really matter what happens in the market because as long as

[18:40] happens in the market because as long as happens in the market because as long as you drive your income, you’re golden. you drive your income, you’re golden. you drive your income, you’re golden. Like that’s not really totally accurate. Like that’s not really totally accurate. Like that’s not really totally accurate. >> Sure. >> Sure. >> Sure. >> And I unfortunately live that truth. >> And I unfortunately live that truth. >> And I unfortunately live that truth. Now, I learned this I learned all this Now, I learned this I learned all this Now, I learned this I learned all this as I’m getting into the space, right? as I’m getting into the space, right? as I’m getting into the space, right? It’s not like I’m going out acquiring It’s not like I’m going out acquiring It’s not like I’m going out acquiring these properties and then learning this these properties and then learning this these properties and then learning this later. Yeah. Um, but you know, the later. Yeah. Um, but you know, the later. Yeah. Um, but you know, the reality I think for most of us is that a

[18:59] reality I think for most of us is that a reality I think for most of us is that a lot of us think we’re being conservative lot of us think we’re being conservative lot of us think we’re being conservative and we’re really trying our best to and we’re really trying our best to and we’re really trying our best to account for es and flows in the market account for es and flows in the market account for es and flows in the market and like, okay, if this changes to this, and like, okay, if this changes to this, and like, okay, if this changes to this, like, okay, am I still going to be good? like, okay, am I still going to be good? like, okay, am I still going to be good? But the reality is, man, is that it’s But the reality is, man, is that it’s But the reality is, man, is that it’s it’s almost impossible to project or it’s almost impossible to project or it’s almost impossible to project or account in your underwriting or your account in your underwriting or your account in your underwriting or your analysis for the black swan event. Like analysis for the black swan event. Like analysis for the black swan event. Like >> right

[19:21] >> right >> right >> in 2021, people were like, “Okay, >> in 2021, people were like, “Okay, >> in 2021, people were like, “Okay, interest rates are probably going to go interest rates are probably going to go interest rates are probably going to go up at some point.” But we were not up at some point.” But we were not up at some point.” But we were not expecting the like significant changes expecting the like significant changes expecting the like significant changes in the way that insurance companies were in the way that insurance companies were in the way that insurance companies were handling the premiums and their handling the premiums and their handling the premiums and their insurance policies on properties located insurance policies on properties located insurance policies on properties located in the greater southeast. Like we had an in the greater southeast. Like we had an in the greater southeast. Like we had an insurance premium jump from year 1 to insurance premium jump from year 1 to insurance premium jump from year 1 to year 2. It 3x like 300 times. It went

[19:48] year 2. It 3x like 300 times. It went year 2. It 3x like 300 times. It went up. And Matias, we didn’t make a claim up. And Matias, we didn’t make a claim up. And Matias, we didn’t make a claim in that first in that year of ownership. in that first in that year of ownership. in that first in that year of ownership. Like, we didn’t do anything. There were Like, we didn’t do anything. There were Like, we didn’t do anything. There were no claims. They just tripled our no claims. They just tripled our no claims. They just tripled our premium. That was a $70,000 increase on premium. That was a $70,000 increase on premium. That was a $70,000 increase on a 80 unit property. Like, where does a 80 unit property. Like, where does a 80 unit property. Like, where does that money come from, that money come from, that money come from, >> right?

[20:04] >> right? >> right? >> And so, you can account for like one >> And so, you can account for like one >> And so, you can account for like one thing going wrong, but who is really thing going wrong, but who is really thing going wrong, but who is really accounting for four variables going like accounting for four variables going like accounting for four variables going like as wrong as they possibly could all at as wrong as they possibly could all at as wrong as they possibly could all at the same time? And that’s really what the same time? And that’s really what the same time? And that’s really what happened in 2022. Um, so anyway, I’ll happened in 2022. Um, so anyway, I’ll happened in 2022. Um, so anyway, I’ll stop bitching about I’ll stop stop bitching about I’ll stop stop bitching about I’ll stop complaining about my commercial multi complaining about my commercial multi complaining about my commercial multi family. But now I’m back. I mean, there family. But now I’m back. I mean, there family. But now I’m back. I mean, there there’s a lot of people uh you facing

[20:30] there’s a lot of people uh you facing there’s a lot of people uh you facing hard times in that multi family space hard times in that multi family space hard times in that multi family space that Yeah. under wrote the deals before that Yeah. under wrote the deals before that Yeah. under wrote the deals before all the stuff changed. So I mean all the stuff changed. So I mean all the stuff changed. So I mean >> totally and it I mean look and it >> totally and it I mean look and it >> totally and it I mean look and it happens, right? Like it it happened in happens, right? Like it it happened in happens, right? Like it it happened in resi in ‘08 and ’ 09. like these things resi in ‘08 and ’ 09. like these things resi in ‘08 and ’ 09. like these things happen. And so, um, being conservative happen. And so, um, being conservative happen. And so, um, being conservative and and doing your absolute best to and and doing your absolute best to and and doing your absolute best to protect yourself is is obviously the protect yourself is is obviously the protect yourself is is obviously the best thing that we can do there. And

[20:53] best thing that we can do there. And best thing that we can do there. And making sure that we never overleverage making sure that we never overleverage making sure that we never overleverage ourselves on one deal where one bad deal ourselves on one deal where one bad deal ourselves on one deal where one bad deal takes us out of the game forever, right? takes us out of the game forever, right? takes us out of the game forever, right? Um, Um, Um, >> yeah. >> yeah. >> yeah. >> So, 2022 rates spiked. I was already >> So, 2022 rates spiked. I was already >> So, 2022 rates spiked. I was already kind of like halfway out on syndication. kind of like halfway out on syndication.

[21:09] kind of like halfway out on syndication. and when rates spiked um and I start and and when rates spiked um and I start and and when rates spiked um and I start and like I was like okay like that I I got like I was like okay like that I I got like I was like okay like that I I got to like figure something different out to like figure something different out to like figure something different out um because I didn’t feel comfortable um because I didn’t feel comfortable um because I didn’t feel comfortable given the uncertainty in the market with given the uncertainty in the market with given the uncertainty in the market with the higher rates and the higher the higher rates and the higher the higher rates and the higher insurance premiums and and the increased insurance premiums and and the increased insurance premiums and and the increased competition that I was still going to be competition that I was still going to be competition that I was still going to be able to do deals which deals equated to able to do deals which deals equated to able to do deals which deals equated to like money and food on the table right

[21:30] like money and food on the table right like money and food on the table right and so it was like okay well I am not and so it was like okay well I am not and so it was like okay well I am not feeling good about where the market’s at feeling good about where the market’s at feeling good about where the market’s at like I got to pivot and so I just I like I got to pivot and so I just I like I got to pivot and so I just I pivoted to smaller apartment complexes. pivoted to smaller apartment complexes. pivoted to smaller apartment complexes. There was way less competition there. Um There was way less competition there. Um There was way less competition there. Um so, you know, since 2022, my partner and so, you know, since 2022, my partner and so, you know, since 2022, my partner and I um have been focused almost I um have been focused almost I um have been focused almost exclusively on affordable housing in the exclusively on affordable housing in the exclusively on affordable housing in the greater Philadelphia area. Um you know, greater Philadelphia area. Um you know, greater Philadelphia area. Um you know, we have acquired a bunch of of different

[21:55] we have acquired a bunch of of different we have acquired a bunch of of different rental units, primarily duplexes and rental units, primarily duplexes and rental units, primarily duplexes and triplexes. Um triplexes. Um triplexes. Um >> just >> just >> just uh no, I so I um I raise money from uh no, I so I um I raise money from uh no, I so I um I raise money from private investors. um my partner in private investors. um my partner in private investors. um my partner in Philly. So, right, I’m down in the Philly. So, right, I’m down in the Philly. So, right, I’m down in the Charlotte area. My partner’s in Philly. Charlotte area. My partner’s in Philly. Charlotte area. My partner’s in Philly. He’s boots on the ground. Um we’re He’s boots on the ground. Um we’re He’s boots on the ground. Um we’re 50/50. Um and then so we have we have 50/50. Um and then so we have we have 50/50. Um and then so we have we have entities. We go and we buy in those entities. We go and we buy in those entities. We go and we buy in those entities. We borrow all of the money entities. We borrow all of the money

[22:22] entities. We borrow all of the money required to do the purchase and the required to do the purchase and the required to do the purchase and the renovations from private investors that renovations from private investors that renovations from private investors that I have built relationships with over the I have built relationships with over the I have built relationships with over the 11 years that I’ve been doing this. Mhm. 11 years that I’ve been doing this. Mhm. 11 years that I’ve been doing this. Mhm. >> Um and we execute on or or we leverage >> Um and we execute on or or we leverage >> Um and we execute on or or we leverage the burr strategy, right? Buy, renovate, the burr strategy, right? Buy, renovate, the burr strategy, right? Buy, renovate, rent, refinance, and repeat. Um and so rent, refinance, and repeat. Um and so rent, refinance, and repeat. Um and so we really we we prefer multi small we really we we prefer multi small we really we we prefer multi small multi-units. We will pick up a single multi-units. We will pick up a single multi-units. We will pick up a single family where it makes sense. Um but

[22:48] family where it makes sense. Um but family where it makes sense. Um but really affordable housing section 8 really affordable housing section 8 really affordable housing section 8 >> section 8. >> section 8. >> section 8. And then more recently um we are we’ve And then more recently um we are we’ve And then more recently um we are we’ve kind of dabbled and and dipped some toes kind of dabbled and and dipped some toes kind of dabbled and and dipped some toes of ours into the co-l livingiving like of ours into the co-l livingiving like of ours into the co-l livingiving like rent by the room business model rent by the room business model rent by the room business model >> and we absolutely love love love that >> and we absolutely love love love that >> and we absolutely love love love that model. We’re in the process of model. We’re in the process of model. We’re in the process of transitioning some of the units that we transitioning some of the units that we transitioning some of the units that we currently have um allocated for currently have um allocated for

[23:13] currently have um allocated for affordable housing like section 8 and affordable housing like section 8 and affordable housing like section 8 and we’re actually converting more of our we’re actually converting more of our we’re actually converting more of our units over to the co-living pads split units over to the co-living pads split units over to the co-living pads split model um as we continue to have eyes and model um as we continue to have eyes and model um as we continue to have eyes and ears open for new opportunities that we ears open for new opportunities that we ears open for new opportunities that we can pick up. Um can pick up. Um can pick up. Um >> let’s talk about that a little bit more.

[23:29] >> let’s talk about that a little bit more. >> let’s talk about that a little bit more. Um, if people aren’t familiar with this, Um, if people aren’t familiar with this, Um, if people aren’t familiar with this, are you are you doing um where the the are you are you doing um where the the are you are you doing um where the the model where you’re actually taking like model where you’re actually taking like model where you’re actually taking like things like dining rooms and uh maybe things like dining rooms and uh maybe things like dining rooms and uh maybe living rooms and turning them into extra living rooms and turning them into extra living rooms and turning them into extra bedrooms and and the idea is people more bedrooms and and the idea is people more bedrooms and and the idea is people more more or less in the working force or or more or less in the working force or or more or less in the working force or or whatever. They just kind of want a place whatever. They just kind of want a place whatever. They just kind of want a place to crash. Uh there’s probably a shared

[23:47] to crash. Uh there’s probably a shared to crash. Uh there’s probably a shared kitchen, but there’s not a ton of like kitchen, but there’s not a ton of like kitchen, but there’s not a ton of like communal living space. It’s kind of communal living space. It’s kind of communal living space. It’s kind of their room. Is that accurate? their room. Is that accurate? their room. Is that accurate? >> Bingo. Yep. Yep. Bingo. Now, there’s a >> Bingo. Yep. Yep. Bingo. Now, there’s a >> Bingo. Yep. Yep. Bingo. Now, there’s a lot of So, this is a newer concept, lot of So, this is a newer concept, lot of So, this is a newer concept, right? The co-l livingiving idea. It’s right? The co-l livingiving idea. It’s right? The co-l livingiving idea. It’s gaining a lot more popularity. It’s gaining a lot more popularity. It’s gaining a lot more popularity. It’s totally being driven by like the totally being driven by like the totally being driven by like the macroeconomics of the world that we live macroeconomics of the world that we live macroeconomics of the world that we live in today. Like for instance, in

[24:06] in today. Like for instance, in in today. Like for instance, in Philadelphia, listen to how ridiculous Philadelphia, listen to how ridiculous Philadelphia, listen to how ridiculous this is when we talk about like the this is when we talk about like the this is when we talk about like the affordability crisis. Like this subject affordability crisis. Like this subject affordability crisis. Like this subject does not get enough attention at all. Um does not get enough attention at all. Um does not get enough attention at all. Um but so listen to this. The median wage but so listen to this. The median wage but so listen to this. The median wage earner in the city of Philadelphia earner in the city of Philadelphia earner in the city of Philadelphia cannot qualify based on income and cannot qualify based on income and cannot qualify based on income and expense ratios to rent the median expense ratios to rent the median expense ratios to rent the median apartment. median earner can’t qualify apartment. median earner can’t qualify apartment. median earner can’t qualify to rent the median apartment.

[24:31] to rent the median apartment. to rent the median apartment. >> Um so I personally think that we are >> Um so I personally think that we are >> Um so I personally think that we are entering a time in our country’s history entering a time in our country’s history entering a time in our country’s history where um the middle class is is probably where um the middle class is is probably where um the middle class is is probably going to continue to be like destroyed. going to continue to be like destroyed. going to continue to be like destroyed. Um I think we’re going to see more Um I think we’re going to see more Um I think we’re going to see more people um struggling to get by, people um struggling to get by, people um struggling to get by, struggling financially. And so we struggling financially. And so we struggling financially. And so we already have an affordability issue. I already have an affordability issue. I already have an affordability issue. I think it’s just going to get bigger as think it’s just going to get bigger as think it’s just going to get bigger as time goes on and as we continue to print

[24:55] time goes on and as we continue to print time goes on and as we continue to print more money and inflation and everything more money and inflation and everything more money and inflation and everything gets more expensive and yada yada yada. gets more expensive and yada yada yada. gets more expensive and yada yada yada. So this is not like the way that we So this is not like the way that we So this is not like the way that we approach co-l livingiving is not like oh approach co-l livingiving is not like oh approach co-l livingiving is not like oh my gosh this is the greatest thing since my gosh this is the greatest thing since my gosh this is the greatest thing since sliced bread. This is like we’re solving sliced bread. This is like we’re solving sliced bread. This is like we’re solving a need that essentially is like I’m a need that essentially is like I’m a need that essentially is like I’m living in a total turd that’s run by a living in a total turd that’s run by a living in a total turd that’s run by a slum lord that could care less and is slum lord that could care less and is slum lord that could care less and is infested with cockroaches that I have

[25:19] infested with cockroaches that I have infested with cockroaches that I have assigned a year lease to be in or I assigned a year lease to be in or I assigned a year lease to be in or I could be homeless or I could rent a room could be homeless or I could rent a room could be homeless or I could rent a room in this like nice clean safe um you know in this like nice clean safe um you know in this like nice clean safe um you know reasonably priced property. Um reasonably priced property. Um reasonably priced property. Um Philadelphia is very very not landlord Philadelphia is very very not landlord Philadelphia is very very not landlord friendly. like we’re like public enemy friendly. like we’re like public enemy friendly. like we’re like public enemy number one it feels like in the city number one it feels like in the city number one it feels like in the city sometimes. So um we’re very careful with sometimes. So um we’re very careful with sometimes. So um we’re very careful with the way that we handle co-l livingiving the way that we handle co-l livingiving the way that we handle co-l livingiving um my partner and I because Philly has a

[25:47] um my partner and I because Philly has a um my partner and I because Philly has a rule on the books that um says that you rule on the books that um says that you rule on the books that um says that you can only have um you can have a maximum can only have um you can have a maximum can only have um you can have a maximum of three unrelated adults living in a of three unrelated adults living in a of three unrelated adults living in a single rental unit. So, initially my single rental unit. So, initially my single rental unit. So, initially my idea was like, I’m going to go buy a idea was like, I’m going to go buy a idea was like, I’m going to go buy a 3,000 square ft house and I’m just going 3,000 square ft house and I’m just going 3,000 square ft house and I’m just going to make like a 12 bed, five bath with to make like a 12 bed, five bath with to make like a 12 bed, five bath with one kitchen and like it’s all going to one kitchen and like it’s all going to one kitchen and like it’s all going to be bedrooms, but that wouldn’t fly in be bedrooms, but that wouldn’t fly in be bedrooms, but that wouldn’t fly in Philly, right? And so I know people that

[26:13] Philly, right? And so I know people that Philly, right? And so I know people that are doing that kind of stuff under the are doing that kind of stuff under the are doing that kind of stuff under the radar, but if you ever run into an issue radar, but if you ever run into an issue radar, but if you ever run into an issue where you need the city to like evict. where you need the city to like evict. where you need the city to like evict. Um they won’t do it if you are not if Um they won’t do it if you are not if Um they won’t do it if you are not if your property’s non-compliant based on your property’s non-compliant based on your property’s non-compliant based on the rules and the rags. So what we’re the rules and the rags. So what we’re the rules and the rags. So what we’re doing is we’re taking these smaller doing is we’re taking these smaller doing is we’re taking these smaller apartment units and we’re maximizing the apartment units and we’re maximizing the apartment units and we’re maximizing the income potential. So the first co-living income potential. So the first co-living income potential. So the first co-living deal that we did was a duplex. upstairs

[26:38] deal that we did was a duplex. upstairs deal that we did was a duplex. upstairs we had a two bed one bath and downstairs we had a two bed one bath and downstairs we had a two bed one bath and downstairs we had a one bed one bath um eaten we had a one bed one bath um eaten we had a one bed one bath um eaten kitchen type of type of thing. So like kitchen type of type of thing. So like kitchen type of type of thing. So like dining kitchens kind of blended but its dining kitchens kind of blended but its dining kitchens kind of blended but its own kind of standalone living room own kind of standalone living room own kind of standalone living room because section 8 which we like in the because section 8 which we like in the because section 8 which we like in the subsidied programs a lot of times they subsidied programs a lot of times they subsidied programs a lot of times they want to see like a dedicated living room want to see like a dedicated living room want to see like a dedicated living room area. Sure. Well, so what we’re doing um area. Sure. Well, so what we’re doing um area. Sure. Well, so what we’re doing um is we’re taking that living room space

[27:01] is we’re taking that living room space is we’re taking that living room space and we’re converting it into a revenue and we’re converting it into a revenue and we’re converting it into a revenue generating bedroom, which is really just generating bedroom, which is really just generating bedroom, which is really just like a partial wall, like temporary wall like a partial wall, like temporary wall like a partial wall, like temporary wall and a door, and a door, and a door, >> right? >> right? >> right? >> Um and then we’re trying our best to >> Um and then we’re trying our best to >> Um and then we’re trying our best to eliminate communal spaces um because the eliminate communal spaces um because the eliminate communal spaces um because the data shows that the typical person data shows that the typical person data shows that the typical person renting by the room isn’t using it renting by the room isn’t using it renting by the room isn’t using it anyway. But it also just increases the anyway. But it also just increases the anyway. But it also just increases the likelihood or the chances that tenant A

[27:28] likelihood or the chances that tenant A likelihood or the chances that tenant A has an issue with tenant B. I wanted to has an issue with tenant B. I wanted to has an issue with tenant B. I wanted to watch whatever and they wouldn’t block, watch whatever and they wouldn’t block, watch whatever and they wouldn’t block, you know, like whatever. And so we don’t you know, like whatever. And so we don’t you know, like whatever. And so we don’t want those issues because tenant A and want those issues because tenant A and want those issues because tenant A and tenant B have an issue. I’m losing one tenant B have an issue. I’m losing one tenant B have an issue. I’m losing one of them if not both, right? And now I of them if not both, right? And now I of them if not both, right? And now I have to fill that unit all over again. I have to fill that unit all over again. I have to fill that unit all over again. I might have to spend money to turn the might have to spend money to turn the might have to spend money to turn the unit blah blah blah blah blah. Right?

[27:47] unit blah blah blah blah blah. Right? unit blah blah blah blah blah. Right? Um, and so we took the two bed, one bed, Um, and so we took the two bed, one bed, Um, and so we took the two bed, one bed, uh, two bed, one bath upstairs, made it uh, two bed, one bath upstairs, made it uh, two bed, one bath upstairs, made it three bed, one bath, rent by the room. three bed, one bath, rent by the room. three bed, one bath, rent by the room. We took the one bed, one bath We took the one bed, one bath We took the one bed, one bath downstairs, converted it into a 21 rent downstairs, converted it into a 21 rent downstairs, converted it into a 21 rent by the room. Listen to this. Section 8, by the room. Listen to this. Section 8, by the room. Listen to this. Section 8, both units filled, we would be at 2,700 both units filled, we would be at 2,700 both units filled, we would be at 2,700 gross in that rental unit. And section gross in that rental unit. And section gross in that rental unit. And section 8’s taking a long time to fill vacancies 8’s taking a long time to fill vacancies 8’s taking a long time to fill vacancies in Philly right now because Philly is

[28:12] in Philly right now because Philly is in Philly right now because Philly is incentivizing developers to include incentivizing developers to include incentivizing developers to include affordable housing units in their new affordable housing units in their new affordable housing units in their new developments. The way that they’re developments. The way that they’re developments. The way that they’re incentivizing is with density bonuses. incentivizing is with density bonuses. incentivizing is with density bonuses. Like, hey, Mr. developer, if you allow Like, hey, Mr. developer, if you allow Like, hey, Mr. developer, if you allow if you will take 20% of your units and if you will take 20% of your units and if you will take 20% of your units and put them for for low income, we’ll put them for for low income, we’ll put them for for low income, we’ll actually give you 30% higher density so actually give you 30% higher density so actually give you 30% higher density so you can add seven more units to that you can add seven more units to that you can add seven more units to that property. Right.

[28:34] property. Right. property. Right. >> Right. So, what section 8 voucher holder >> Right. So, what section 8 voucher holder >> Right. So, what section 8 voucher holder in their right mind is renting from me, in their right mind is renting from me, in their right mind is renting from me, right, the 1930 built single family home right, the 1930 built single family home right, the 1930 built single family home that was chopped up into a two bed, one that was chopped up into a two bed, one that was chopped up into a two bed, one bath apartment with no amenities when bath apartment with no amenities when bath apartment with no amenities when they can take that voucher and get the they can take that voucher and get the they can take that voucher and get the brand new quartz countertops, right? The brand new quartz countertops, right? The brand new quartz countertops, right? The washerd dryer in unit, the access to the washerd dryer in unit, the access to the washerd dryer in unit, the access to the gym and the pool and it’s the same cost gym and the pool and it’s the same cost

[28:58] gym and the pool and it’s the same cost as my unit. Like so it’s taking us like as my unit. Like so it’s taking us like as my unit. Like so it’s taking us like 4 to 6 months right now to fill a 4 to 6 months right now to fill a 4 to 6 months right now to fill a section 8 unit. On average we fill a section 8 unit. On average we fill a section 8 unit. On average we fill a bedroom co-l livingiving in like 15 bedroom co-l livingiving in like 15 bedroom co-l livingiving in like 15 days. days. days. >> So we have less vacancy. We’re losing >> So we have less vacancy. We’re losing >> So we have less vacancy. We’re losing less money per month um covering less money per month um covering less money per month um covering expenses. But now rented by the room expenses. But now rented by the room expenses. But now rented by the room that property grosses $4,000 to $4,100 a that property grosses $4,000 to $4,100 a that property grosses $4,000 to $4,100 a month.

[29:21] month. month. >> Wow. >> Wow. >> Wow. >> 27004100. Which one sounds better? Right. Which one sounds better? Right. Which one sounds better? Right. >> Right. Um, I’ve also dabbled with >> Right. Um, I’ve also dabbled with >> Right. Um, I’ve also dabbled with short-term rentals. Um, an idea that was short-term rentals. Um, an idea that was short-term rentals. Um, an idea that was kind of implanted in my mind with the kind of implanted in my mind with the kind of implanted in my mind with the apartment experience that I had was, you apartment experience that I had was, you apartment experience that I had was, you know, for a while my mindset was more know, for a while my mindset was more know, for a while my mindset was more doors, more doors, more doors, more doors, more doors, more doors, more doors, more doors, more doors, more doors, right? Even if I’m making $5 a doors, right? Even if I’m making $5 a doors, right? Even if I’m making $5 a month on the door, like I’ll Walmart month on the door, like I’ll Walmart month on the door, like I’ll Walmart this and I’ll just make money on

[29:50] this and I’ll just make money on this and I’ll just make money on volume even if it’s a small margin. And volume even if it’s a small margin. And volume even if it’s a small margin. And in reality, that’s possible, but the in reality, that’s possible, but the in reality, that’s possible, but the likelihood that you’re coming out of likelihood that you’re coming out of likelihood that you’re coming out of pocket to cover expenses is greater. pocket to cover expenses is greater. pocket to cover expenses is greater. You’re having to take on way more debt, You’re having to take on way more debt, You’re having to take on way more debt, right? To realize that um as a path right? To realize that um as a path right? To realize that um as a path forward. And so this idea of like, well, forward. And so this idea of like, well, forward. And so this idea of like, well, wait a second, what about fewer, better wait a second, what about fewer, better wait a second, what about fewer, better performing doors, right? Like that performing doors, right? Like that performing doors, right? Like that became this new kind of mantra of mine.

[30:14] became this new kind of mantra of mine. became this new kind of mantra of mine. >> And so I’ve tested short-term rentals. >> And so I’ve tested short-term rentals. >> And so I’ve tested short-term rentals. Um not a big fan of the short-term Um not a big fan of the short-term Um not a big fan of the short-term rental space. It’s too much immediate rental space. It’s too much immediate rental space. It’s too much immediate customer service required and I’m doing customer service required and I’m doing customer service required and I’m doing this for freedom of time to have like oh this for freedom of time to have like oh this for freedom of time to have like oh it’s 9:45 and my phone buzz and I know it’s 9:45 and my phone buzz and I know it’s 9:45 and my phone buzz and I know that I have a late checkin so they must that I have a late checkin so they must that I have a late checkin so they must right like I don’t want to do that. Um right like I don’t want to do that. Um right like I don’t want to do that. Um so I’ve done one short-term rental. I so I’ve done one short-term rental. I

[30:38] so I’ve done one short-term rental. I probably won’t do anymore unless it’s a probably won’t do anymore unless it’s a probably won’t do anymore unless it’s a screaming hot deal and I can like feel screaming hot deal and I can like feel screaming hot deal and I can like feel super comfortable hiring out and still super comfortable hiring out and still super comfortable hiring out and still doing well. Um hiring the property doing well. Um hiring the property doing well. Um hiring the property management out and still doing well. So management out and still doing well. So management out and still doing well. So now the core focus moving forward for my now the core focus moving forward for my now the core focus moving forward for my business is continuing to burr business is continuing to burr business is continuing to burr affordable housing and also co-l affordable housing and also co-l affordable housing and also co-l livingiving and just building the livingiving and just building the livingiving and just building the portfolio that way. Um and then I also portfolio that way. Um and then I also

[31:00] portfolio that way. Um and then I also do some coaching now as well. Um I had do some coaching now as well. Um I had do some coaching now as well. Um I had to learn how to develop systems and to learn how to develop systems and to learn how to develop systems and processes and a way of of attracting processes and a way of of attracting processes and a way of of attracting private money to me on a consistent private money to me on a consistent private money to me on a consistent basis when I’m buying like multiple basis when I’m buying like multiple basis when I’m buying like multiple multi-million dollar apartment complexes multi-million dollar apartment complexes multi-million dollar apartment complexes per year, right? like per year, right? like per year, right? like >> the rolodex of seven people that’ll lend >> the rolodex of seven people that’ll lend >> the rolodex of seven people that’ll lend me 100 grand like wasn’t going to cut it me 100 grand like wasn’t going to cut it me 100 grand like wasn’t going to cut it anymore. So I now also coach real estate anymore. So I now also coach real estate

[31:24] anymore. So I now also coach real estate investors on how to raise their own investors on how to raise their own investors on how to raise their own private money to fully fund their deals. private money to fully fund their deals. private money to fully fund their deals. Um so that’s now my business today. Um so that’s now my business today. Um so that’s now my business today. >> Cool. Did you did you sell all your >> Cool. Did you did you sell all your >> Cool. Did you did you sell all your apartments then? All the big complexes? apartments then? All the big complexes? apartments then? All the big complexes? >> I still I’m I’m still working on a on a >> I still I’m I’m still working on a on a >> I still I’m I’m still working on a on a uh on an exit for three of them. I’m uh on an exit for three of them. I’m uh on an exit for three of them. I’m still in still in still in >> Okay. Um yeah, it’s interesting. And I, >> Okay. Um yeah, it’s interesting. And I, >> Okay. Um yeah, it’s interesting. And I, you know, I think it’s it’s also uh

[31:47] you know, I think it’s it’s also uh you know, I think it’s it’s also uh people people might hear that, you know, people people might hear that, you know, people people might hear that, you know, there’s affordability crisis. You’re there’s affordability crisis. You’re there’s affordability crisis. You’re talking about how uh the rent is um you talking about how uh the rent is um you talking about how uh the rent is um you know, the median rent can’t be afforded know, the median rent can’t be afforded know, the median rent can’t be afforded by the median income um in the Philly by the median income um in the Philly by the median income um in the Philly area. And people might be like, “Yeah, area. And people might be like, “Yeah, area. And people might be like, “Yeah, land landlords just need to reduce the land landlords just need to reduce the land landlords just need to reduce the the cost.” But you also just outlined the cost.” But you also just outlined the cost.” But you also just outlined why that’s so hard like with the why that’s so hard like with the why that’s so hard like with the expenses going up uh with insurance. Um

[32:09] expenses going up uh with insurance. Um expenses going up uh with insurance. Um the interest rates are are really the interest rates are are really the interest rates are are really difficult. And I think that’s exactly difficult. And I think that’s exactly difficult. And I think that’s exactly one of the ways people are kind of one of the ways people are kind of one of the ways people are kind of figuring out how to make things work, figuring out how to make things work, figuring out how to make things work, make ends meet, is getting more creative make ends meet, is getting more creative make ends meet, is getting more creative with what they’re doing. And and you’re with what they’re doing. And and you’re with what they’re doing. And and you’re outlining the co-l livingiving space as outlining the co-l livingiving space as outlining the co-l livingiving space as one of them. Short-term rentals is one of them. Short-term rentals is one of them. Short-term rentals is another one, but like you said, it’s another one, but like you said, it’s another one, but like you said, it’s very labor intensive. Us personally, we

[32:29] very labor intensive. Us personally, we very labor intensive. Us personally, we the last burr we did, we turned into a the last burr we did, we turned into a the last burr we did, we turned into a midterm rental. Um Yeah. midterm rental. Um Yeah. midterm rental. Um Yeah. >> And uh that was our way of trying to >> And uh that was our way of trying to >> And uh that was our way of trying to make figure out how to make this make figure out how to make this make figure out how to make this property we wanted to keep longterm. um property we wanted to keep longterm. um property we wanted to keep longterm. um as yeah as a as a rental that would as yeah as a as a rental that would as yeah as a as a rental that would actually pencil out. Um actually pencil out. Um actually pencil out. Um >> yeah. How do you like how do you like >> yeah. How do you like how do you like >> yeah. How do you like how do you like that midterm space? I was concerned that that midterm space? I was concerned that that midterm space? I was concerned that I didn’t have like in my network the

[32:53] I didn’t have like in my network the I didn’t have like in my network the resources or the contacts to be able to resources or the contacts to be able to resources or the contacts to be able to consistently funnel enough leads, you consistently funnel enough leads, you consistently funnel enough leads, you know, to be able to keep that midterm know, to be able to keep that midterm know, to be able to keep that midterm full. full. full. >> Um so I wound up like I looked at it but >> Um so I wound up like I looked at it but >> Um so I wound up like I looked at it but never never pulled the trigger on one of never never pulled the trigger on one of never never pulled the trigger on one of those. So, actually one of our episodes those. So, actually one of our episodes those. So, actually one of our episodes we had uh Jesse Vasquez on and we had uh Jesse Vasquez on and we had uh Jesse Vasquez on and >> dude that’s the first that’s that’s who >> dude that’s the first that’s that’s who >> dude that’s the first that’s that’s who got me interested in in Midterm was

[33:15] got me interested in in Midterm was got me interested in in Midterm was Jesse Vasquez on probably a Bigger Jesse Vasquez on probably a Bigger Jesse Vasquez on probably a Bigger Pockets podcast. Probably Pockets podcast. Probably Pockets podcast. Probably >> it was our podcast. Come on. >> it was our podcast. Come on. >> it was our podcast. Come on. He actually live analyzed this deal He actually live analyzed this deal He actually live analyzed this deal because we were debating about what to because we were debating about what to because we were debating about what to do. So, he like went through the process do. So, he like went through the process do. So, he like went through the process of how he would analyze it and convinced of how he would analyze it and convinced of how he would analyze it and convinced me to actually go through with it and do me to actually go through with it and do me to actually go through with it and do it. Uh which is fun. Um but uh it’s it’s it. Uh which is fun. Um but uh it’s it’s it. Uh which is fun. Um but uh it’s it’s a whole different animal. So we we now

[33:37] a whole different animal. So we we now a whole different animal. So we we now know um kind of what our market uh where know um kind of what our market uh where know um kind of what our market uh where the sweet spot where where the sweet the sweet spot where where the sweet the sweet spot where where the sweet spot is for what our rent should be. spot is for what our rent should be. spot is for what our rent should be. Backwards engineer that like um then you Backwards engineer that like um then you Backwards engineer that like um then you can really figure out what can really figure out what can really figure out what >> what you should be providing, what you >> what you should be providing, what you >> what you should be providing, what you should be aiming for if you’re if you’re should be aiming for if you’re if you’re should be aiming for if you’re if you’re looking to convert properties into that looking to convert properties into that looking to convert properties into that that demographic. Um, and so, um, that’s that demographic. Um, and so, um, that’s that demographic. Um, and so, um, that’s been interesting. But, um, the other the

[33:59] been interesting. But, um, the other the been interesting. But, um, the other the other thing that’s really hard about it, other thing that’s really hard about it, other thing that’s really hard about it, it’s it’s a different cadence. And, you it’s it’s a different cadence. And, you it’s it’s a different cadence. And, you know, people that are doing, you know, know, people that are doing, you know, know, people that are doing, you know, long-term rentals, they’re they’re long-term rentals, they’re they’re long-term rentals, they’re they’re looking, you know, a month out, looking, you know, a month out, looking, you know, a month out, whatever. They’re looking a little bit whatever. They’re looking a little bit whatever. They’re looking a little bit ahead often, right? They’re it’s it’s ahead often, right? They’re it’s it’s ahead often, right? They’re it’s it’s kind of rare that the person is like kind of rare that the person is like kind of rare that the person is like needing to move in tomorrow, and that’s needing to move in tomorrow, and that’s needing to move in tomorrow, and that’s usually kind of like a red flag, right?

[34:18] usually kind of like a red flag, right? usually kind of like a red flag, right? >> Yeah. Yeah. Yeah. Um but but for but for >> Yeah. Yeah. Yeah. Um but but for but for >> Yeah. Yeah. Yeah. Um but but for but for the midterm space like you almost don’t the midterm space like you almost don’t the midterm space like you almost don’t hear anything until like a week out and hear anything until like a week out and hear anything until like a week out and that’s like a little bit nerve-wracking that’s like a little bit nerve-wracking that’s like a little bit nerve-wracking because like beginning looking going because like beginning looking going because like beginning looking going into it I was budgeting you know way into it I was budgeting you know way into it I was budgeting you know way more money way more rent um we I thought more money way more rent um we I thought more money way more rent um we I thought we needed way more rent to cover make up we needed way more rent to cover make up we needed way more rent to cover make up for the vacancy that I thought was going for the vacancy that I thought was going

[34:39] for the vacancy that I thought was going to happen and so far we’ve had three to happen and so far we’ve had three to happen and so far we’ve had three different tenants and we’ve had one day different tenants and we’ve had one day different tenants and we’ve had one day of vacancy of vacancy of vacancy >> and and so that’s been and one and the >> and and so that’s been and one and the >> and and so that’s been and one and the the most recent one is sign up for seven the most recent one is sign up for seven the most recent one is sign up for seven months Um, months Um, months Um, >> oh, that’s awesome. >> oh, that’s awesome. >> oh, that’s awesome. >> So, they’re almost, you know, a >> So, they’re almost, you know, a >> So, they’re almost, you know, a longterm, but but anyway, so, you know, longterm, but but anyway, so, you know, longterm, but but anyway, so, you know, it’s it’s been a great space. I think it’s it’s been a great space. I think it’s it’s been a great space. I think it’s uh it’s really good. And if you go it’s uh it’s really good. And if you go

[34:57] it’s uh it’s really good. And if you go to Furnished Finders, um, we really we to Furnished Finders, um, we really we to Furnished Finders, um, we really we put it on all the different platforms, put it on all the different platforms, put it on all the different platforms, but we’ve just found all of our tenants but we’ve just found all of our tenants but we’ve just found all of our tenants really through that. really through that. really through that. >> Um, other than one that was word of >> Um, other than one that was word of >> Um, other than one that was word of mouth. Um, but, uh, if you go to Furnish mouth. Um, but, uh, if you go to Furnish mouth. Um, but, uh, if you go to Furnish Finders, they have, um, some metrics.

[35:12] Finders, they have, um, some metrics. Finders, they have, um, some metrics. they’ll you can do your zip code and they’ll you can do your zip code and they’ll you can do your zip code and figure out like what the demand is for figure out like what the demand is for figure out like what the demand is for um for that area, how many searches or um for that area, how many searches or um for that area, how many searches or how many properties are listed, etc. And how many properties are listed, etc. And how many properties are listed, etc. And there’s like certain ratios that I there’s like certain ratios that I there’s like certain ratios that I forget what the ratio is off the top of forget what the ratio is off the top of forget what the ratio is off the top of my head, but like you could it would be my head, but like you could it would be my head, but like you could it would be makes sense.

[35:27] makes sense. makes sense. >> But for us, we found out that, you know, >> But for us, we found out that, you know, >> But for us, we found out that, you know, about 1,800 bucks a month would be the about 1,800 bucks a month would be the about 1,800 bucks a month would be the sweet spot. And so a lot of our rentals sweet spot. And so a lot of our rentals sweet spot. And so a lot of our rentals would benefit from converting uh to get would benefit from converting uh to get would benefit from converting uh to get to that that price point. to that that price point. to that that price point. >> Yeah, for sure. And it’s a lot of people >> Yeah, for sure. And it’s a lot of people >> Yeah, for sure. And it’s a lot of people that just want like kind of like I mean that just want like kind of like I mean that just want like kind of like I mean honestly like you’d almost just throw honestly like you’d almost just throw honestly like you’d almost just throw your uh your co-l livingiving spaces your uh your co-l livingiving spaces your uh your co-l livingiving spaces bedrooms onto that platform um and do a

[35:50] bedrooms onto that platform um and do a bedrooms onto that platform um and do a monthly model because you’re probably monthly model because you’re probably monthly model because you’re probably paying utilities anyway, right? paying utilities anyway, right? paying utilities anyway, right? >> Oh yeah. Yeah. Yeah. Yeah. We pay >> Oh yeah. Yeah. Yeah. Yeah. We pay >> Oh yeah. Yeah. Yeah. Yeah. We pay utilities. We got um internet service utilities. We got um internet service utilities. We got um internet service there. Um so yeah, we’re covering all there. Um so yeah, we’re covering all there. Um so yeah, we’re covering all that stuff. that stuff. that stuff. >> You should.

[36:01] >> You should. >> You should. >> And pardon me, I’m moving cuz I’m >> And pardon me, I’m moving cuz I’m >> And pardon me, I’m moving cuz I’m noticing that my device I’m on is about noticing that my device I’m on is about noticing that my device I’m on is about to die. So, I got to plug into a charger to die. So, I got to plug into a charger to die. So, I got to plug into a charger before we get disconnected here from my before we get disconnected here from my before we get disconnected here from my device dying. device dying. device dying. >> If that would be a really good >> If that would be a really good >> If that would be a really good experiment because I mean if it’s experiment because I mean if it’s experiment because I mean if it’s furnished and you’re paying utilities, furnished and you’re paying utilities, furnished and you’re paying utilities, you’re really doing everything anyway.

[36:14] you’re really doing everything anyway. you’re really doing everything anyway. So, you could just try um uh one of the So, you could just try um uh one of the So, you could just try um uh one of the rooms. Uh I had thought through and I rooms. Uh I had thought through and I rooms. Uh I had thought through and I guess maybe talk about this a little bit guess maybe talk about this a little bit guess maybe talk about this a little bit too like do you um have any concerns or too like do you um have any concerns or too like do you um have any concerns or is there any kind of uh etiquette as far is there any kind of uh etiquette as far is there any kind of uh etiquette as far as uh mixing up genders if it’s a solo as uh mixing up genders if it’s a solo as uh mixing up genders if it’s a solo person uh in in a room? like is are you person uh in in a room? like is are you person uh in in a room? like is are you going to put a a girl or you going to going to put a a girl or you going to going to put a a girl or you going to talk to them about it if if if it’s all talk to them about it if if if it’s all

[36:36] talk to them about it if if if it’s all guys in this you know co-l livingiving guys in this you know co-l livingiving guys in this you know co-l livingiving space what what does that look like? space what what does that look like? space what what does that look like? >> Um so I can’t really answer that >> Um so I can’t really answer that >> Um so I can’t really answer that question honestly. Um because I am not question honestly. Um because I am not question honestly. Um because I am not one that ever wants to manage my own one that ever wants to manage my own one that ever wants to manage my own stuff. stuff. stuff. >> Um I am not a manager. Um you know I’ve >> Um I am not a manager. Um you know I’ve >> Um I am not a manager. Um you know I’ve learned that over time.

[36:56] learned that over time. learned that over time. >> Uh I’m good like 30,000 foot view. I’m >> Uh I’m good like 30,000 foot view. I’m >> Uh I’m good like 30,000 foot view. I’m good sales. I’m good like vision good sales. I’m good like vision good sales. I’m good like vision casting, but management and day-to-day casting, but management and day-to-day casting, but management and day-to-day operations is is is definitely not my operations is is is definitely not my operations is is is definitely not my strong suit. So, knowing that, I am strong suit. So, knowing that, I am strong suit. So, knowing that, I am really always trying to either a partner really always trying to either a partner really always trying to either a partner with the person that’s going to handle with the person that’s going to handle with the person that’s going to handle the day-to-day operations, which is what the day-to-day operations, which is what the day-to-day operations, which is what I did with my short-term rental. Um, or I did with my short-term rental. Um, or I did with my short-term rental. Um, or just flat out hire it out. So, on in the

[37:24] just flat out hire it out. So, on in the just flat out hire it out. So, on in the co-living property, we leverage a co-living property, we leverage a co-living property, we leverage a platform called Padsplit. Yep. platform called Padsplit. Yep. platform called Padsplit. Yep. um which is essentially like Airbnb to um which is essentially like Airbnb to um which is essentially like Airbnb to short-term living, right? Um so Padsplit short-term living, right? Um so Padsplit short-term living, right? Um so Padsplit has members that have they have to apply has members that have they have to apply has members that have they have to apply to become a member on Padsplit and then to become a member on Padsplit and then to become a member on Padsplit and then members are then eligible to be able to members are then eligible to be able to members are then eligible to be able to rent rooms that are then listed on rent rooms that are then listed on rent rooms that are then listed on Padsplit. So they’re handling a lot of Padsplit. So they’re handling a lot of Padsplit. So they’re handling a lot of like the initial qualification steps.

[37:51] like the initial qualification steps. like the initial qualification steps. And then we took even we went a step And then we took even we went a step And then we took even we went a step further and hired an actual third-party further and hired an actual third-party further and hired an actual third-party property manager to handle everything property manager to handle everything property manager to handle everything else that Padsplit doesn’t handle. So if else that Padsplit doesn’t handle. So if else that Padsplit doesn’t handle. So if you were to talk to Padsplit, if they you were to talk to Padsplit, if they you were to talk to Padsplit, if they were on your podcast, they would tell were on your podcast, they would tell were on your podcast, they would tell you that their initial screening is you that their initial screening is you that their initial screening is excellent and that that’s all you need.

[38:11] excellent and that that’s all you need. excellent and that that’s all you need. But everybody that I’ve ever talked to But everybody that I’ve ever talked to But everybody that I’ve ever talked to that’s owned one has advised me that that’s owned one has advised me that that’s owned one has advised me that there’s a second level, a kind of harder there’s a second level, a kind of harder there’s a second level, a kind of harder vetting that they prefer rather than vetting that they prefer rather than vetting that they prefer rather than just relying on padsplit. So my property just relying on padsplit. So my property just relying on padsplit. So my property manager um has kind of a second level, manager um has kind of a second level, manager um has kind of a second level, if you will, of vetting and of if you will, of vetting and of if you will, of vetting and of qualification. Um, and so she’s then qualification. Um, and so she’s then qualification. Um, and so she’s then having all of the conversations about, having all of the conversations about, having all of the conversations about, but we do communicate like, “Hey, this

[38:39] but we do communicate like, “Hey, this but we do communicate like, “Hey, this is who’s already in the property, right? is who’s already in the property, right? is who’s already in the property, right? Because when we fill a unit with Because when we fill a unit with Because when we fill a unit with Padsplit, the first 10 days go to Padsplit, the first 10 days go to Padsplit, the first 10 days go to Padsplit for filling the unit.” So, it’s Padsplit for filling the unit.” So, it’s Padsplit for filling the unit.” So, it’s kind of similar to like a property kind of similar to like a property kind of similar to like a property manager taking the first month’s rent, manager taking the first month’s rent, manager taking the first month’s rent, except I’m only losing 10 days instead except I’m only losing 10 days instead except I’m only losing 10 days instead of 30, right?

[38:54] of 30, right? of 30, right? Um, so I don’t want that person to move Um, so I don’t want that person to move Um, so I don’t want that person to move in and then be gone in a week because in and then be gone in a week because in and then be gone in a week because like it’s a single girl and didn’t like it’s a single girl and didn’t like it’s a single girl and didn’t realize that the roommates are all men. realize that the roommates are all men. realize that the roommates are all men. Like it doesn’t do me any any it doesn’t Like it doesn’t do me any any it doesn’t Like it doesn’t do me any any it doesn’t do me any good. It hurts me, right? Um, do me any good. It hurts me, right? Um, do me any good. It hurts me, right? Um, so we absolutely disclose that so we absolutely disclose that so we absolutely disclose that information. We have not implemented any information. We have not implemented any information. We have not implemented any policies internally to control that. Um, policies internally to control that. Um, policies internally to control that. Um, but we also have only been live on

[39:20] but we also have only been live on but we also have only been live on Padsplit for 4 months with that Padsplit for 4 months with that Padsplit for 4 months with that particular property. So, I’m a little particular property. So, I’m a little particular property. So, I’m a little >> Well, and if you’re not agreeing behind >> Well, and if you’re not agreeing behind >> Well, and if you’re not agreeing behind the gills almost to even doing the the gills almost to even doing the the gills almost to even doing the vetting, I mean, I I don’t think you vetting, I mean, I I don’t think you vetting, I mean, I I don’t think you have as much uh liability. I can just have as much uh liability. I can just have as much uh liability. I can just see that there there could be see that there there could be see that there there could be possibilities for liability there, possibilities for liability there, possibilities for liability there, >> right? Putting putting people together >> right? Putting putting people together >> right? Putting putting people together in the same house that they don’t know.

[39:40] in the same house that they don’t know. in the same house that they don’t know. Um, but but anyway, that’s that’s a Um, but but anyway, that’s that’s a Um, but but anyway, that’s that’s a different conversation. And I do want to different conversation. And I do want to different conversation. And I do want to get to our our time’s kind of running get to our our time’s kind of running get to our our time’s kind of running short here and your phone’s going to short here and your phone’s going to short here and your phone’s going to die. die. die. >> Not anymore, man. I’m I’m plugged in. >> Not anymore, man. I’m I’m plugged in. >> Not anymore, man. I’m I’m plugged in. We’re good.

[39:51] We’re good. We’re good. >> We’ll go for another two hours. I do >> We’ll go for another two hours. I do >> We’ll go for another two hours. I do want to I do want to ask you though want to I do want to ask you though want to I do want to ask you though about uh a golden nugget. If you have a about uh a golden nugget. If you have a about uh a golden nugget. If you have a golden nugget you want to share to our golden nugget you want to share to our golden nugget you want to share to our listeners. listeners. listeners. >> So, yes, absolutely. Um, I host a a real >> So, yes, absolutely. Um, I host a a real >> So, yes, absolutely. Um, I host a a real estate meeting here locally. And this estate meeting here locally. And this estate meeting here locally. And this gold nugget is a really important one, gold nugget is a really important one, gold nugget is a really important one, but it isn’t one that I actually had on but it isn’t one that I actually had on but it isn’t one that I actually had on my mind until last night because last my mind until last night because last

[40:13] my mind until last night because last night was our last meeting for the year. night was our last meeting for the year. night was our last meeting for the year. And I had three panelists come in that And I had three panelists come in that And I had three panelists come in that are in kind of different niches or like are in kind of different niches or like are in kind of different niches or like using different strategies in real using different strategies in real using different strategies in real estate investing, right? and I had them estate investing, right? and I had them estate investing, right? and I had them in to kind of tell their story and and in to kind of tell their story and and in to kind of tell their story and and talk about their niche or their strategy talk about their niche or their strategy talk about their niche or their strategy um to give newer people locally an idea um to give newer people locally an idea um to give newer people locally an idea of like areas to focus on with a lot of of like areas to focus on with a lot of of like areas to focus on with a lot of upside for 2026.

[40:39] upside for 2026. upside for 2026. And it was funny because in everyone’s And it was funny because in everyone’s And it was funny because in everyone’s story, like we all had really common story, like we all had really common story, like we all had really common themes to the story. And I think that themes to the story. And I think that themes to the story. And I think that it’s really contrary to what most people it’s really contrary to what most people it’s really contrary to what most people think you need when you’re getting think you need when you’re getting think you need when you’re getting started or envision about people getting started or envision about people getting started or envision about people getting into real estate, right? So like gold into real estate, right? So like gold into real estate, right? So like gold nugget, you need literally nothing to nugget, you need literally nothing to nugget, you need literally nothing to get started as a real estate investor.

[41:05] get started as a real estate investor. get started as a real estate investor. So, I know that your your um your show So, I know that your your um your show So, I know that your your um your show is really right for real estate agents is really right for real estate agents is really right for real estate agents and exploring the concept of becoming a and exploring the concept of becoming a and exploring the concept of becoming a real estate investor or getting into real estate investor or getting into real estate investor or getting into real estate investing. So, I think a lot real estate investing. So, I think a lot real estate investing. So, I think a lot of us I’ve been doing this for 11 years of us I’ve been doing this for 11 years of us I’ve been doing this for 11 years now. I’ve talked to a lot of like now. I’ve talked to a lot of like now. I’ve talked to a lot of like wannabe like people wanting to get wannabe like people wanting to get wannabe like people wanting to get started so on and so forth. And like started so on and so forth. And like started so on and so forth. And like there’s these limiting beliefs that so

[41:29] there’s these limiting beliefs that so there’s these limiting beliefs that so many people have and I had them too and many people have and I had them too and many people have and I had them too and you probably did too when you first got you probably did too when you first got you probably did too when you first got started. like, “Well, how am I going to started. like, “Well, how am I going to started. like, “Well, how am I going to do this? I don’t have money.” Well, good do this? I don’t have money.” Well, good do this? I don’t have money.” Well, good news. You don’t need any money at all. news. You don’t need any money at all. news. You don’t need any money at all. Like, you can just borrow it. You find a Like, you can just borrow it. You find a Like, you can just borrow it. You find a good deal and you can borrow. You can good deal and you can borrow. You can good deal and you can borrow. You can find a source where you can tap to be find a source where you can tap to be find a source where you can tap to be able to access their capital. So, it’s able to access their capital. So, it’s

[41:47] able to access their capital. So, it’s not that no money at all is needed. It’s not that no money at all is needed. It’s not that no money at all is needed. It’s just that it’s not your money that’s just that it’s not your money that’s just that it’s not your money that’s needed. Like, well, I don’t have needed. Like, well, I don’t have needed. Like, well, I don’t have experience flipping houses. Like, experience flipping houses. Like, experience flipping houses. Like, neither did anybody else when they neither did anybody else when they neither did anybody else when they flipped their first house. like like the flipped their first house. like like the flipped their first house. like like the people we watch on HGTV like they didn’t people we watch on HGTV like they didn’t people we watch on HGTV like they didn’t come out of the womb flipping houses come out of the womb flipping houses come out of the womb flipping houses like they had to flip their first house like they had to flip their first house like they had to flip their first house too, too, too, >> right?

[42:08] >> right? >> right? >> And your your network doesn’t really >> And your your network doesn’t really >> And your your network doesn’t really matter, right? Your knowledge doesn’t matter, right? Your knowledge doesn’t matter, right? Your knowledge doesn’t really m like you can build and acquire really m like you can build and acquire really m like you can build and acquire and develop and grow all of those and develop and grow all of those and develop and grow all of those things. You literally the only thing you things. You literally the only thing you things. You literally the only thing you need to get started is a passion for need to get started is a passion for need to get started is a passion for improving your life, a willingness to improving your life, a willingness to improving your life, a willingness to take action, and being okay potentially take action, and being okay potentially take action, and being okay potentially falling on your face and looking silly falling on your face and looking silly falling on your face and looking silly for a period of time while you’re

[42:32] for a period of time while you’re for a period of time while you’re figuring things out. Because the truth figuring things out. Because the truth figuring things out. Because the truth is, no matter how much somebody tries to is, no matter how much somebody tries to is, no matter how much somebody tries to educate themselves on any subject, we educate themselves on any subject, we educate themselves on any subject, we can never learn everything. like you can never learn everything. like you can never learn everything. like you learn some, you apply the information learn some, you apply the information learn some, you apply the information and it’s through the application of the and it’s through the application of the and it’s through the application of the information that the education actually information that the education actually information that the education actually happens, right? And most of us think we happens, right? And most of us think we happens, right? And most of us think we need to cram cram cram cram cram. I’m need to cram cram cram cram cram. I’m need to cram cram cram cram cram. I’m going to know everything and then I can

[42:59] going to know everything and then I can going to know everything and then I can hit the ground running. That’s a hit the ground running. That’s a hit the ground running. That’s a fallacy. That’s not even possible. So my fallacy. That’s not even possible. So my fallacy. That’s not even possible. So my gold nugget would be like don’t trip gold nugget would be like don’t trip gold nugget would be like don’t trip over the things that you don’t have. over the things that you don’t have. over the things that you don’t have. find the internal strength or discipline find the internal strength or discipline find the internal strength or discipline or motivation or whatever. Focus on that or motivation or whatever. Focus on that or motivation or whatever. Focus on that and you’ll figure it out as you go as and you’ll figure it out as you go as and you’ll figure it out as you go as long as you’re willing to just simply long as you’re willing to just simply long as you’re willing to just simply not give up.

[43:21] not give up. not give up. >> I love it. That’s that’s great. It’s >> I love it. That’s that’s great. It’s >> I love it. That’s that’s great. It’s fantastic. fantastic. fantastic. >> Like my superpower is being so stubborn >> Like my superpower is being so stubborn >> Like my superpower is being so stubborn that I refuse to quit. Like that’s my that I refuse to quit. Like that’s my that I refuse to quit. Like that’s my superpower. Like I’m too stupid to quit. superpower. Like I’m too stupid to quit. superpower. Like I’m too stupid to quit. >> I don’t know if everybody would call it >> I don’t know if everybody would call it >> I don’t know if everybody would call it stupid, but uh yeah. No, I I agree with stupid, but uh yeah. No, I I agree with stupid, but uh yeah. No, I I agree with you. And I think a lot of times to your you. And I think a lot of times to your you. And I think a lot of times to your point like people get stuck in kind of point like people get stuck in kind of point like people get stuck in kind of like learning the new thing or or like

[43:42] like learning the new thing or or like like learning the new thing or or like maybe this is the avenue of investing maybe this is the avenue of investing maybe this is the avenue of investing that I’m going to go into and then they that I’m going to go into and then they that I’m going to go into and then they they find another one and they never they find another one and they never they find another one and they never actually take the step and and actually take the step and and actually take the step and and >> you know you may not hit a grand slam >> you know you may not hit a grand slam >> you know you may not hit a grand slam the first time but uh you know the the first time but uh you know the the first time but uh you know the education alone is worth it typically.

[43:55] education alone is worth it typically. education alone is worth it typically. So So So >> totally. How about a book you think is >> totally. How about a book you think is >> totally. How about a book you think is fundamental for everybody to read or or fundamental for everybody to read or or fundamental for everybody to read or or one that you’re currently really one that you’re currently really one that you’re currently really enjoying? So, I’m going to So, a Robert enjoying? So, I’m going to So, a Robert enjoying? So, I’m going to So, a Robert Kiasaki book is like one of my Kiasaki book is like one of my Kiasaki book is like one of my favorites. It’s not Rich Dad Poor Dad.

[44:10] favorites. It’s not Rich Dad Poor Dad. favorites. It’s not Rich Dad Poor Dad. The Cash Flow Quadrant. The Cash Flow Quadrant. The Cash Flow Quadrant. >> Yeah. >> Yeah. >> Yeah. >> Is a phenomenal book. Like, if if >> Is a phenomenal book. Like, if if >> Is a phenomenal book. Like, if if anybody listening is of the mindset anybody listening is of the mindset anybody listening is of the mindset that’s like, I want to make money, but I that’s like, I want to make money, but I that’s like, I want to make money, but I don’t always want to have to trade my don’t always want to have to trade my don’t always want to have to trade my time to make that money. Cash Flow time to make that money. Cash Flow time to make that money. Cash Flow Quadrant is an amazing book. Like, Quadrant is an amazing book. Like, Quadrant is an amazing book. Like, amazing book. Yeah.

[44:30] amazing book. Yeah. amazing book. Yeah. >> So, that’s one. Number two, I know you >> So, that’s one. Number two, I know you >> So, that’s one. Number two, I know you only asked me for number one, but Never only asked me for number one, but Never only asked me for number one, but Never Split the Difference by Chris Voss is Split the Difference by Chris Voss is Split the Difference by Chris Voss is possibly the best negotiation and sales possibly the best negotiation and sales possibly the best negotiation and sales book that I’ve ever read. And you’re book that I’ve ever read. And you’re book that I’ve ever read. And you’re talking to somebody that did B2B and talking to somebody that did B2B and talking to somebody that did B2B and doortodoor sales, ran his own sales doortodoor sales, ran his own sales doortodoor sales, ran his own sales company, and then did a bunch of sales company, and then did a bunch of sales company, and then did a bunch of sales for other people, like solution selling, for other people, like solution selling, for other people, like solution selling, and like I’ve done all those

[44:53] and like I’ve done all those and like I’ve done all those sales programs. Pardon my language. I sales programs. Pardon my language. I sales programs. Pardon my language. I told you I would slip up every once in a told you I would slip up every once in a told you I would slip up every once in a while. Um, but Never Split the while. Um, but Never Split the while. Um, but Never Split the Difference by Chris Voss is so so so so Difference by Chris Voss is so so so so Difference by Chris Voss is so so so so good. So good. good. So good. good. So good. >> I I agree with both of those. And >> I I agree with both of those. And >> I I agree with both of those. And actually, um, in in my book that I’m actually, um, in in my book that I’m actually, um, in in my book that I’m working on, uh, we talk about the cash working on, uh, we talk about the cash working on, uh, we talk about the cash flow quadrant, um, a a good bit. And flow quadrant, um, a a good bit. And flow quadrant, um, a a good bit. And just kind of I think a lot of times just kind of I think a lot of times just kind of I think a lot of times agents, uh, will feel like they they’ve

[45:17] agents, uh, will feel like they they’ve agents, uh, will feel like they they’ve won by moving from the employed to won by moving from the employed to won by moving from the employed to self-employed, uh, quadrant, which is a self-employed, uh, quadrant, which is a self-employed, uh, quadrant, which is a great step, and it was huge for me. um a great step, and it was huge for me. um a great step, and it was huge for me. um a huge moment of realization that that you huge moment of realization that that you huge moment of realization that that you know I need to be in this kind of space. know I need to be in this kind of space. know I need to be in this kind of space. Uh but then to go above and beyond that Uh but then to go above and beyond that Uh but then to go above and beyond that to start building up that those other to start building up that those other to start building up that those other quadrants either by building a business quadrants either by building a business quadrants either by building a business um or investing and uh having your time um or investing and uh having your time

[45:40] um or investing and uh having your time and your money leveraged. and your money leveraged. and your money leveraged. >> Yeah. It’s funny too, right? Because I >> Yeah. It’s funny too, right? Because I >> Yeah. It’s funny too, right? Because I think I think most of us actually aspire think I think most of us actually aspire think I think most of us actually aspire for the self-employed and it isn’t until for the self-employed and it isn’t until for the self-employed and it isn’t until you read that book that you’re like, “Oh you read that book that you’re like, “Oh you read that book that you’re like, “Oh being self-employed like sounds being self-employed like sounds being self-employed like sounds like it really sucks.” And then like like it really sucks.” And then like like it really sucks.” And then like when you experience it for yourself in when you experience it for yourself in when you experience it for yourself in real life, like it blows. Like being real life, like it blows. Like being real life, like it blows. Like being self-employed is hard, man. Like self-employed is hard, man. Like

[46:00] self-employed is hard, man. Like there’s, you know, like you don’t get there’s, you know, like you don’t get there’s, you know, like you don’t get the security of the of the consistent. the security of the of the consistent. the security of the of the consistent. So like it’s just it’s it’s it’s hard. So like it’s just it’s it’s it’s hard. So like it’s just it’s it’s it’s hard. That’s not the end goal. I I agree with That’s not the end goal. I I agree with That’s not the end goal. I I agree with you. It’s a step in the direction. It’s you. It’s a step in the direction. It’s you. It’s a step in the direction. It’s a step in the journey, but like I don’t a step in the journey, but like I don’t a step in the journey, but like I don’t think it’s the goal. At least not for think it’s the goal. At least not for think it’s the goal. At least not for me.

[46:14] me. me. >> Um yeah. So yeah, I I agree. Think I >> Um yeah. So yeah, I I agree. Think I >> Um yeah. So yeah, I I agree. Think I think that’s in the book I I’m you know think that’s in the book I I’m you know think that’s in the book I I’m you know teaching to to you know if somebody just teaching to to you know if somebody just teaching to to you know if somebody just invests while they if they love sales if invests while they if they love sales if invests while they if they love sales if they love you know the business which so they love you know the business which so they love you know the business which so many people do uh love real estate like many people do uh love real estate like many people do uh love real estate like just if you’re investing as you go um just if you’re investing as you go um just if you’re investing as you go um you build that other side and that’s can you build that other side and that’s can you build that other side and that’s can be your easy retirement plan with with be your easy retirement plan with with be your easy retirement plan with with the tax advantages etc. Um,

[46:36] the tax advantages etc. Um, the tax advantages etc. Um, >> yeah, speaking of tax advantages, so I >> yeah, speaking of tax advantages, so I >> yeah, speaking of tax advantages, so I haven’t said this anywhere else, um, but haven’t said this anywhere else, um, but haven’t said this anywhere else, um, but I got over a $20,000 tax return this I got over a $20,000 tax return this I got over a $20,000 tax return this year over like almost 30 G’s. Is that year over like almost 30 G’s. Is that year over like almost 30 G’s. Is that >> real estate investing? >> real estate investing? >> real estate investing? >> Real estate investing. That’s why. >> Real estate investing. That’s why.

[46:52] >> Real estate investing. That’s why. >> Yep. Yep. As a real estate uh >> Yep. Yep. As a real estate uh >> Yep. Yep. As a real estate uh professional, um, you’ve got some access professional, um, you’ve got some access professional, um, you’ve got some access to some some powerful tools. So, um, to some some powerful tools. So, um, to some some powerful tools. So, um, it’s it’s it’s >> Yeah, you do. >> Yeah, you do. >> Yeah, you do. >> Check with your CPAs, of course, but um, >> Check with your CPAs, of course, but um, >> Check with your CPAs, of course, but um, accelerated depreciation is the name of accelerated depreciation is the name of accelerated depreciation is the name of the game. I mean, if if you’re a a a an the game. I mean, if if you’re a a a an the game. I mean, if if you’re a a a an agent that’s out there hustling, um agent that’s out there hustling, um agent that’s out there hustling, um trying to pick up a rental um or trying to pick up a rental um or trying to pick up a rental um or investing in a syndication or something,

[47:14] investing in a syndication or something, investing in a syndication or something, uh can can really help you on the taxes uh can can really help you on the taxes uh can can really help you on the taxes and and your your retirement. and and your your retirement. and and your your retirement. >> Yeah. And hey, for your audience, like >> Yeah. And hey, for your audience, like >> Yeah. And hey, for your audience, like if you have investor clients that are if you have investor clients that are if you have investor clients that are looking to sell, looking to sell, looking to sell, encourage them to 1031 their money. Um, encourage them to 1031 their money. Um, encourage them to 1031 their money. Um, like that is a even if they don’t do it, like that is a even if they don’t do it, like that is a even if they don’t do it, like just that simple recommendation like just that simple recommendation like just that simple recommendation could save your client thousands and could save your client thousands and could save your client thousands and then guess what? They’re never going to

[47:38] then guess what? They’re never going to then guess what? They’re never going to use another agent like ever again. Like use another agent like ever again. Like use another agent like ever again. Like you’re going to be their favorite agent you’re going to be their favorite agent you’re going to be their favorite agent forever. forever. forever. >> Absolutely. Um, Adam, if people want to >> Absolutely. Um, Adam, if people want to >> Absolutely. Um, Adam, if people want to follow on your story or, you know, follow on your story or, you know, follow on your story or, you know, follow you on in social media, where can follow you on in social media, where can follow you on in social media, where can they find you?

[47:52] they find you? they find you? >> So, I’m I’m most active on Facebook and >> So, I’m I’m most active on Facebook and >> So, I’m I’m most active on Facebook and Instagram. Um, but what I would Instagram. Um, but what I would Instagram. Um, but what I would encourage would be I have a Facebook encourage would be I have a Facebook encourage would be I have a Facebook community. Um, a Facebook group community. Um, a Facebook group community. Um, a Facebook group community that I’ve created. Um, it’s community that I’ve created. Um, it’s community that I’ve created. Um, it’s called the cash flow. So, cash flow called the cash flow. So, cash flow called the cash flow. So, cash flow collective. Check out and if you like collective. Check out and if you like collective. Check out and if you like what you see, join the group, the what you see, join the group, the what you see, join the group, the community, the cash flow collective. Um, community, the cash flow collective. Um, community, the cash flow collective. Um, my group I have a meet that’s, you know, my group I have a meet that’s, you know,

[48:18] my group I have a meet that’s, you know, kind of associated with my monthly kind of associated with my monthly kind of associated with my monthly meetup which we do live stream um as meetup which we do live stream um as meetup which we do live stream um as well. So if any of your audience gets well. So if any of your audience gets well. So if any of your audience gets value, it’s free. They can join the live value, it’s free. They can join the live value, it’s free. They can join the live streams once a month to continue to streams once a month to continue to streams once a month to continue to level up their real estate investing level up their real estate investing level up their real estate investing knowledge and game. Um, so I would say knowledge and game. Um, so I would say knowledge and game. Um, so I would say that Cash Flow Collective.

[48:34] that Cash Flow Collective. that Cash Flow Collective. >> Okay. >> Okay. >> Okay. >> Facebook group. >> Facebook group. >> Facebook group. >> Well, Adam, thanks so much for being on >> Well, Adam, thanks so much for being on >> Well, Adam, thanks so much for being on the show. It’s been a lot of fun. the show. It’s been a lot of fun. the show. It’s been a lot of fun. >> Matias, thanks for having me. I >> Matias, thanks for having me. I >> Matias, thanks for having me. I appreciate it. Sharing your soap box. appreciate it. Sharing your soap box. appreciate it. Sharing your soap box. >> Thanks for listening to the REI Agent.

[48:47] >> 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 reiagent.com Visit reiagent.com Visit reiagent.com for more content. for more content. 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. 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