0:00

this is the bigger part of podcast show

0:02

six thirty two it's

0:05

not when you start that the bottom

0:07

line is he starts and six now

0:09

is the perfect time to start because you're going to be

0:11

several months to have roka relationships

0:14

to start talking to investors to stop refine your

0:16

business plan to get into the market

0:18

and by the time you get it's with the cyclists changed

0:20

again we the she's so he time

0:22

for the last two years that if you've already

0:24

started to start today and they've committed

0:26

figure out what you're wise and start

0:29

today whether single family homes where the

0:31

multifamily was a storage weather's

0:33

mobile home was picking nits learn it

0:35

really well education transaction

0:37

it was results and then send why you're doing what

0:40

, going out every one of my name is david greene and i'm

0:42

your host of the bigger part of real say podcast

0:45

here today with my super

0:47

super talented cohosts rob of a

0:49

solo as we are interviewing jake

0:52

encino multifamily specialist

0:55

fun guy smart guys and good guys

0:57

we had a great time on the show

0:59

robert are some your favorite parts well

1:01

you know these guys are they've been on the show

1:04

a couple of times actually i believe they were on sale

1:06

one eighty six and two sixty six

1:08

i didn't have to look that up i have every single episode

1:11

memorized is the fun fact about me and

1:14

you know they've really had really an insane

1:16

career where i think you know think can't member

1:18

off the top off my head reading the first time they're here like

1:21

three hundred units and six hundred units

1:23

and and this time around they're coming to us with around

1:25

eighteen hundred units at my math on that

1:28

but yeah i mean they they retired covered everything

1:30

from their three step framework to

1:32

things like you know certain philosophy

1:34

that they have like become the conveyor belt

1:37

theory with belt think we got really into the nitty gritty

1:39

of that there for a second to they had

1:41

so much perspective on it

1:43

real estate investing in general and multifamily

1:45

investing in specific they've been doing

1:47

it for so long and at a really high level

1:50

so i would def we make sure you listen all

1:52

the way to the and because we get into

1:54

how to know if syndication is right for you

1:56

or if you should keep things small ah

1:58

how to understand how market cycles

2:01

and exit strategies relate to each other

2:03

i thought that was really, really powerful a

2:05

lot of people are worried what market are we

2:07

in? what should i do in this moment? and

2:09

they've sort of found a way to to exit strategy

2:11

just where you are in the to come up with something will

2:14

work no matter the market so make

2:16

sure you listen all the way to the end because we get into some really

2:18

good stuff there before we bring them

2:20

in today's quick tip

2:22

brought to you by biggerpockets

2:24

and robbins hello today is

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quick, tip is going to be if you

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super exciting you're going to hear keynotes for me in david

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this is gonna be a blast so i highly recommend

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the tickets are we sell out it's there's people

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that want to get an enchanted and so go there he

2:58

did it now because it's can be a really really

3:00

good time alright one last thing

3:02

if you are listening to this on you to please

3:05

don't leave us a comment tell us what you think about the show

3:07

what you liked what made you laugh what you'd like

3:09

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5:26

zito welcome to the bigger park his podcast

5:28

are you doing today we're doing great hey do

5:30

daves rob don't fall for their

5:33

their names and like a mafioso vibe

5:35

the taken see no kind of babies are sweet hearts

5:37

of men who have been incredibly greater so i

5:39

proceed to guests of so this is

5:41

what is this our third time haven't you on the show now yes

5:44

legal back to look the notes he was bp

5:46

one eight six mbp

5:48

to six six the first show had six hundred

5:50

and seventy four units the second we had nine

5:52

hundred and here's the third one third

5:55

time's a charm my friend you know you're dealing with

5:57

other podcast professionals when they do your job for

5:59

you by writing that back on thank you very much for

6:01

that gina so since we last talked

6:03

to guy sally what's been going on in your world yeah

6:05

no i i think to the genus my with with

6:08

i continued to grow we i dabbled

6:10

a little bit in syndication didn't

6:12

, turn out to be the tune the

6:14

tool belt were looking for sense than

6:16

an hour genius at how many units where we at the and bless

6:18

them we the the so weird nine hundred it's at the last

6:21

nine hundred yes oh it's the sense that we've done up

6:23

overnight in hundred units are multifamily

6:25

apartments acquired i'm currently

6:27

hold about one hundred seventy five million

6:30

million have seventy full time team members within

6:33

our organization a family of companies and

6:36

were sent out about one hundred and thirty acres of land

6:38

that we're looking to development to to

6:41

develop excuse me i'll go back a little bit though the

6:43

we did three syndications and

6:45

it just wasn't a good alignment

6:47

of our values in terms of what we're looking

6:49

to do aren't typically it's been like

6:52

genome myself made his brothers invested

6:54

or with had the as a couple a senior people

6:56

on our team invest in the deals and we just you know

6:58

we put a jv together a partnership

7:00

we go out and buy an and building

7:03

in a we we said hey look at the syndication thing

7:05

seems pretty interesting a lot of people are doing it

7:07

and damn it just seems like it was

7:09

incentivizing us to sell and these

7:12

deals are so hard to find expected the really good

7:14

ones and over time because we

7:16

bought deals internally with built up is really

7:18

nice cashflow snowball every month

7:20

and it continues to grow i mean the inflation

7:23

stuff is deathly spread that

7:25

said that yield curve out a little bit more a us

7:27

but that's really what we enjoyed

7:29

doing we wanted continue to build out of vertically

7:31

integrated team so we sold to the so

7:34

off we still hold one

7:36

or but everything else is just owned internally

7:38

and it's really you know what we like to do

7:41

you have we'd like to get employees invested you have

7:43

deals and now we're looking at doing some

7:46

are different developments in the future

7:48

because we've kind of your built that are catholics

7:51

team is what i calm as cover renovations team that

7:53

goes in handles lot of the stuff and

7:55

will be a great community behind us to that sub

7:57

closed over forty five thousand dollars and but

7:59

three billion and i'm not a family asset

8:01

some internet really fun ride

8:03

sinhalese okay

8:05

the by here you write it sounds like

8:08

what i heard saying is that is getting so difficult

8:10

to buy that there's certain scenarios where he

8:12

looking at selling and then there's others we're looking

8:14

at literally building in developing is that makes more

8:16

sense and buying something so no not

8:19

necessarily so we've done six

8:22

or seven deals and last four months and

8:24

what i really recommend everyone to do is to have

8:26

multiple tools and tools belt that's

8:29

why we had a syndication that's why we've done

8:31

create a financing what it's done

8:34

is done is more competition at

8:36

the larger deals because there's more

8:38

private equity coming into that space and

8:40

those deals are getting more competitive so we've

8:42

actually downshifted a little bit two three

8:45

four five million dollar deal so we've been doing

8:47

more of those in addition to

8:49

we've been buying land because we have

8:51

more resources more skilled people on the teams

8:53

we started development company where the guys on the team

8:56

got his general contractors license so

8:58

we can reduce the gc fees and

9:00

so ultimately yes to a certain extent

9:03

the bigger deals have become

9:05

more competitive in their less attractive to us

9:07

but we've sort of just downshifted

9:09

in pivoted to stuff that we

9:11

can have started out with but it still makes sense

9:14

for us because we're buying them internally if

9:16

you wanted to touch on something you mentioned earlier

9:18

because this is something that i'm like really

9:20

starting to get into myself me so

9:22

you try to get your employees invested

9:24

in your deals can you talk about what

9:26

you mean on that specifically like are

9:29

you paying them via equity are you actually

9:31

asking them to invest in this indication

9:33

that you bring together so we're not putting says yeah

9:35

we're actually not as do some cases

9:37

as people on our property management team

9:39

and us similar to you know you hear the

9:41

term like aesop gets thrown around

9:43

like employee stock ownership program essentially

9:46

these are people that are participating on the deals

9:48

and and the prop at prop property management level and

9:50

once you've been with our organization for two years

9:53

we're see open it up after

9:55

nearly ten after peer reviewed at that point make sure that

9:57

everyone the team that is is an alignment

9:59

and then will allow you to actually

10:02

invest dollar for dollar

10:04

into the deals that we're putting together and

10:06

so those people are you know x actively participating

10:09

on those deals in it's it's it's worked

10:11

out really well i mean with had multiple revise

10:14

with team members in a point out anywhere

10:16

from fifty to seventy thousand dollars

10:19

on these deals and then they continue to reinvest

10:21

the at the funds in the future acquisition so

10:23

it's really it's something that

10:26

, a little bit unique to us i'm sure other folks do

10:28

it but it's worked really well because these

10:30

people now are seen

10:33

the benefits of their work from an ownership

10:35

perspective and in it in a tight

10:37

labor market it's done a great job

10:39

of retaining folks because it's not just the

10:42

job because here's the deal as an

10:44

entrepreneur i don't have a cat i

10:46

can make as much bleeping money as i freaking

10:49

watson is and as much money as my creativity

10:51

and hard work will allow as a w

10:53

two employees you can i realized

10:56

the same thing that i can because we're playing different games

10:59

initiative you're safe now very whatever

11:01

that's just the world we live in so if you

11:03

want to play in that different space which

11:06

side to find opportunities to open it up for folks

11:09

and i think that's worked really well and we've seen

11:11

some people make a good amount of money work

11:13

with our team and their continued to grow with

11:15

the the deals it's it's going to be the

11:17

same sort of thing once it's in a stabilize

11:20

and we have it up and rain will do know

11:22

others folks to invest that cost a

11:24

dollar for dollar the robber

11:26

share quick story with the one of our main and stacks

11:29

for six thousand dollars into

11:31

a deal his wife is telling don't

11:33

you can't do what you gonna risk no money so he

11:35

puts it is six thousand dollars a year later

11:38

he gets back eighteen thousand dollars goes to

11:40

his wife is or pump the wife says when

11:42

it's put more money a deal maybe he

11:44

did you can have either way it's and the

11:46

things i like the by the more than anything else you have

11:48

property managers now going to us and saying hey

11:50

jake enough we need to raise rents

11:53

whereas before they weren't invested in the deal

11:55

they like in honor of we should raise rents now it's

11:58

all by an ally is all that the

12:00

on his and they were my distance enough well

12:04

and that's what is socialism doesn't work from the perspective

12:07

of owning real estate and when they're part ownership

12:09

and is really division at were trying to create that's

12:11

the vision that we want to have an are in in organizations

12:14

we sell education a mentorship so we want

12:16

our team members to be bought into multifamily

12:18

said to be bodies that be ago and the best way to

12:20

do that as the has i'm allow us to are

12:22

you on their side by side with with us there's

12:25

something powerful about a lining

12:27

interest in that way the

12:29

say at a general level the

12:32

way most people try to change other people's minds

12:34

is by shouting at them condemning them

12:37

are making a big scene been really emotional

12:39

or pouting their point and it never works

12:42

the second that you get somebody who's invested

12:44

in the thing the same way that you are their minds is

12:46

automatically changes on it's own and i think

12:48

that's really smart of you guys were like

12:51

you will see property management that as like

12:53

, opposing we don't want to raise rates because

12:55

that these were work for them they gotta go sell the tenants

12:58

maybe some tennis leave the gotta fill the units so

13:00

it's in their best interest they're looking at it to keep

13:02

keep status quo and then they'll find

13:04

data to support that's as the second

13:07

a big as given the game all of sudden it's other like

13:09

of it though that plc and hey we could bump up

13:11

our our ally by four percent of we just put

13:13

rates to market level at magically and

13:16

i think i've i think personally in

13:18

life where i've always looked for the

13:20

cheapest option and i've sometimes miss

13:22

what you guys are describing there were sometimes

13:24

paying someone more or aligning

13:26

they are to said to are not only gets

13:28

them to do a better job at your bottom line

13:30

works out better cause they're more invested his actions

13:32

like a principal the you to have sort of figured out

13:35

from other deals you've done now david

13:37

you've really hit the nail on the head that's a

13:39

leaders a sponsor do wish was to have a vision and

13:41

we're supposed to align our vision and get the

13:43

right people on the bus and

13:46

having core values because have a core values

13:48

having cultures having that mister satan is

13:50

what we've worked on since our last bigger pockets

13:52

because listen you were lot of you aren't listening

13:55

haven't bought a deal yet but i

13:57

why your the think of what the end in mine is what you

13:59

want he did you feel for me

14:01

i want a real estate to create a lifestyle and for

14:03

to be able to create the jacobs you know communities where

14:05

he was your help other people leave their diabetes

14:08

and have a do that you have to create the culture

14:10

you have to create your core values are mission statements

14:12

people first extreme ownership unwavering

14:15

ethics make it happen growth mindset

14:17

that's our core values and everything as

14:19

around that vision and we want to hire and fire

14:22

our employees our vendors our

14:24

jenkins yield mentorship soon as they come on board

14:26

we want to create that cultures and once you create

14:28

that culture the hardest thing have been entrepreneurs

14:31

the had the vision and do you said david let's

14:33

hire that outlet let's get rid of those tasha when

14:35

i was a do and let's really go

14:37

towards the vision and you can get people going

14:40

towards your vision and up pulling them but allowing

14:42

them to com allows him to be part of that vision

14:44

it's and stanley more empowering honestly

14:47

my it's so much more fun because you

14:49

don't have the gluttons help people you doing they

14:51

want to fall you they feel it's they're all the

14:53

said we're changing people's lives in a one be part

14:55

of it adobe him understanding

14:57

hear your philosophy and obviously

15:00

to skill to the the massive

15:02

portfolio that he had i think you mentioned someone the neighborhood

15:04

of eighteen hundred units or something like that i

15:06

have imagined that y'all have developed a a

15:09

certain framework for how you guys can

15:11

conduct business can you tell us a little bit about

15:13

some of that framework yeah had it i think

15:16

early on we we saw real estate

15:18

and specifically multifamily vesting as a three

15:20

legged stool and we wrote about that in our for our

15:22

first book wilbur a prophet said it really comes

15:24

down to buy right manage right and finance

15:27

rights and i think so many

15:29

new investors struggle with

15:31

not having will we call by right criteria

15:34

so we're very down the in on what

15:36

market we're looking at what median income

15:39

were looking for out of the deal

15:41

that the vintage uk the age

15:43

of the property sometimes we'll

15:46

even by deal because maybe it's it has more

15:48

three bedrooms and we noticed that as many three bedrooms

15:50

in that area we love townhomes okay

15:52

the certain things that we look for and and

15:55

word a we have a great advantage because

15:57

we have a portfolio to scan and

15:59

this is challenge everyone out there to do

16:02

number one i so many investors sp to don't

16:04

have a draw report and what i mean by that

16:07

there's a difference between cash accounting and

16:09

a cruel accounting okay you're gonna have your your

16:11

software they use and and the set the

16:13

systems litter the first

16:16

okay is the first them first thing

16:18

that i went through all over thirty entities this morning

16:21

and i did a draw report with the income statement

16:23

we have a baseline it's usually mortgage

16:25

escrow plus thirty percent that's what we keep

16:27

in there then the money left over

16:29

we draw the rest of it okay it's very

16:31

important to you you managed the cash

16:33

very tightly because i think people

16:36

get a little lost and okay this is a cruel accounting

16:38

versus casts the other thing is i

16:40

know the profit per unit

16:42

of every entity every month and

16:44

that's listed on the draw report so you

16:46

need to see what type of units

16:49

are paying you and how much given

16:51

example we have it's it's

16:53

alcoa like a quads i build for rec community

16:55

it's a it's some of these the condo

16:57

townhomes that we bought upstairs downstairs

17:00

with a garage we it was at the time

17:02

we paid more per unit for these things and

17:04

we pay for any of other deals they were

17:06

kind of worried about it after it's

17:08

been stabilized noun up a profit per

17:10

unit of pp you every month this is one of the

17:12

best performing assets that

17:14

we have okay so

17:17

you know you can do your underwriting he can he can

17:19

do this once you to deal things change a lot

17:21

okay so we we looked at had to

17:23

buy right criteria we look to finance long

17:25

term and take the right off the the rate risk

17:27

the interest rate risk at the table that was like

17:29

i'm a statement you know six months ago

17:31

in our biskind is limitless rise

17:33

and deals are changing now but once

17:35

you buy it once you financing long term

17:37

a really just comes down to management and and

17:39

that's where and lot of people you their sink or swim

17:42

because it's maybe it's like i'm getting

17:44

a multi family and it's not it's a nice

17:46

investment this investment this business and you need to treat

17:48

it like one that's where a lot of people flounders

17:50

because they don't realize you're an entrepreneur

17:53

now yona multifamily assets and okay

17:55

if you have a third party property management you need

17:57

to lead you need to have a cadence

17:59

of accountability the group i would recommend

18:01

everyone meeting with your property manager minimum of

18:03

once per week and cats and making

18:05

sure they're executed and what you the leader

18:07

the visionary the entrepreneur wants to see happen

18:11

and let's be honest in practice and in many

18:13

instances is not happening the

18:15

robbers another thing that we talk about also called

18:17

the three pills of real states and i loved

18:19

it when write this down we've we've trademark that but

18:21

the know the concepts are out there but when you bring them all together

18:24

the three pillars market cycle number one

18:26

debt number two an exit

18:28

strategy number three now one of the biggest mistakes

18:30

a jig and i made early on as we did have an exit

18:32

strategy for a deals with empire deals and

18:35

not sold them for the long term but

18:37

most investors and they get out there they don't think with the exercises

18:39

if eternal we exit strategies how are

18:41

you going to get whatever type of debt you're you're

18:44

getting are you can get bridge ted's big idiot short term debt

18:46

or even long term debt whatever that looks like so

18:48

figure out what the exit strategies a's

18:50

and also be flexible about that's with the important

18:53

things but let's get to the market cycle in

18:55

the market cycle it's really important to understand

18:58

where you are in the market cycle is truly

19:00

truly important because in two thousand and thirteen

19:03

jake and i were buying different deals than we

19:05

are now in this part of the market cycle the

19:07

bc properties they're pretty much the same

19:09

tap rates so why are we looking at see properties

19:12

unless we're buying a really good prices when

19:14

you buy in the market cycle figure up the

19:16

assets you're buying in this part of the cycling shake

19:18

it talked about that when you guys get off

19:20

of this recording sit down you're

19:24

bi re criteria what are you buying jake

19:26

and i in this part of the market sake or buying your

19:28

assets eighties and north we'd like

19:30

brick buildings we like asses said don't

19:32

have a lot of capital expenditures we

19:34

like to evaluate components on those assets

19:37

we also for some reason is add

19:39

residents love washer dryer upsets

19:41

the demanding that we're looking for us and we love

19:43

townhomes so we've really dialed in

19:45

in this part of the market cycle we know what

19:48

kind of eggs treasury have were like we liked

19:50

by these assets we like three fire as as we refine

19:52

over twenty five million bucks out of our portfolio

19:55

we that's what our strategies is not what

19:57

i'm saying and what i want to do but be clear

19:59

on that because that exercise you allow

20:01

you to buy the right feels as part of the market and

20:03

i think every savvy real say investor who knows

20:05

what they're doing just like a stock market investors

20:08

they make money on the market goes up and they make

20:10

money when the market goes down just be

20:12

utilizing all three those pillars in

20:15

conjunction with by right mandrake finance

20:17

rights you try to mitigate your risk and you try

20:19

to buy these assets in decades as

20:21

they can messes come on their young real quick

20:23

the have a niche they jump in for a year as

20:25

a works sticking to it it takes

20:28

a while to jake and us myself eighteen

20:30

months of by that first deals and after

20:32

eighteen months three months later we got into

20:34

a second deal and in six months later we're going for

20:36

a third deals but there's a lot of work in the front

20:38

end we didn't even know and he's principles we just got

20:40

lucky your fortune favors the bold the

20:42

harder you work the lucky you get but please

20:44

think about that are ready write that down market cycle

20:47

deaths in always think about we are

20:49

underway to conceal looking at a deal that planes

20:51

coming off the ground you know that at

20:53

optional labeling that plane or it

20:55

could be getting out of a deal that

20:58

has to happen one where the others are figure out

21:00

what you want to happen at the and that idea

21:02

there was talk about exit strategy and

21:04

why of everything you mentioned i think

21:06

the majority of investors understand debts

21:09

and they understand the market cycle that's

21:11

all the questions everyone ask right they tended

21:13

to real stay like it stocks are we up are we down

21:15

as as a buyer is as the celts but

21:17

as the strategy is not discuss

21:19

very often why is that you think that this is a

21:22

under appreciated element of investing in

21:24

real state that especially newer investors don't

21:26

take serious enough because it's so hard

21:29

it's it's the rich people sell

21:31

wealthy people hold and is really

21:33

long term mindset we created one hundred your

21:35

real sick messrs it's really hard

21:37

our first deal two thousand and thirteen rents

21:40

were three age of fifty bucks for one bedroom

21:42

we still owe their property nine

21:44

years later rents are nine ninety

21:46

five plus rugs that's

21:49

still the same we generate so much

21:51

wealth when that one twenty five unit

21:53

little properties a it's amazing

21:55

and i seats for people to the

21:58

think about that and we're just so

22:00

conditioned for transactions transactions

22:02

pay the bills i think inequity makes rich

22:05

and as a for everyone just a slowdown for second in

22:07

sync with the and in mind is for for me i

22:09

love on his ass as long term as

22:11

far as the tax benefits as far as depreciation

22:14

as far as the control and as far as

22:16

the legacy being able to hands down my non

22:18

to my kids into migrated that's

22:20

from thinking about but sometimes it can get really hard

22:22

thinking mother long trump's but that's worth

22:24

real estate you get the real huge compound

22:27

effect for had yankee the isi piggyback

22:29

off regina said because i think that

22:31

sinking in decades can make you

22:33

a very wealthy multifamily even the

22:35

debt if you're looking fannie freddie dead a lot of time

22:38

you have tenure terms on these deals and

22:41

i've seen it time and time again one of the deals

22:43

we've solved very little of are poor foil very

22:45

little one of the deal the still pisses me off

22:47

and it's silly so bought a deal

22:50

is a nice two thousand build bought it at

22:52

the time for for decade door like back and twenty

22:54

fifteen just the okay got really lucky

22:56

whatever you want to say ran up

22:58

we saw the for one hundred k door where

23:00

who are we bad ass man we thought we are

23:02

so damn cool the day very

23:04

easily that deals with hundred a decade door and it

23:07

pisses me off because we typically don't self

23:09

could very easily just take our money back

23:11

off it's because here's here's how our business works

23:13

it's very simple and case we get good

23:15

long term debt we fix the right we

23:18

then add a lot more units to the portfolio

23:20

every year you know what have we can twenty to thirty percent

23:23

top lane revenue growth we

23:25

get a huge swell of cost segregation to

23:27

depreciate the party keeps going

23:29

on in the casual bills over time it's

23:31

as simple as that and that's all i want to do

23:33

is continue to duplicate their strategies

23:36

in markets that i feel comfortable with and

23:38

look we're we're in knoxville tennessee where

23:40

we have assets in lexington we've looked at national

23:43

lot haven't been able to make anything work we're looking

23:45

east of us and south near chattanooga

23:47

just the city so we vertically integrated have

23:49

a core management team there and were growing

23:51

from our nucleus from our core then

23:54

it's just add another one on just

23:56

keep duplicating we've got it figured out

23:58

now sis finding more and that why we wanted to

24:00

add the the development peace and because

24:03

it's just going to allow us to continue to hit that topline

24:05

revenue growth i've always liked it

24:07

real estate from the perspective of the more

24:09

options you have the more ability you have

24:11

to create wealth the year

24:14

is you got one way in one

24:16

way out if there's any problem with

24:18

this plan you don't have a contingency in place

24:20

to to sift right so when you first

24:23

get started in sub did you're always thinking idealistic

24:25

we as a new investor when a by

24:27

the soup like similar for the rest my life minami

24:29

to give it's my kids some decks but

24:31

those of us that have been doing this for a little bit of time

24:34

but we we sort of recognized what

24:36

stops people from getting involved, is the fear of what

24:39

i going do if something happens and the way

24:41

you overcome as just have different

24:43

ways, you play the cards that your

24:45

dell and the better investors have those options so

24:47

what i love about what you guys saying you're actually

24:49

going into it from the perspective of,

24:52

how do i count for all of

24:54

the things that could happen with what i believe is?

24:56

the longer of a timeline? you give yourself the

24:58

harder, it is for a deal to not work

25:00

would you guys agree with that? is that part

25:02

of when you're talked about market cycles and and

25:04

exit strategies? i agree with them

25:07

you know you'll get some for the said yeah

25:09

i agree a hundred percent with that but sometimes

25:11

when you're starting out we don't take enough

25:13

time to think about our business planes going to be and

25:15

i don't want anyone to get on here and say i'm going to

25:17

change ups it's taken shaken i several

25:19

years to come up with these these thoughts and his business

25:22

plans just start start

25:24

buying these assets and let time

25:27

take control and in what i what i mean

25:29

by that is you give yourself enough

25:31

of or enough of a runway these assets will

25:33

appreciate or times and the only took

25:35

the only two times you worry about the value of your lcs

25:38

when you buy your asset or when you sell your assets

25:40

are you refine the assets that that's really important

25:42

that's why by rate is so crucial but that's

25:44

what you're focusing on but for me

25:47

when we started out i never thought i would have

25:49

owned eighteen as soon as i just want to

25:51

start and to get out of my restaurant

25:53

business and yep and i wasn't thinking

25:55

about this huge growth twenty five units for me

25:57

was a massive it was huge

25:59

use a life changing to me i

26:01

just saw hey i'm making three hit three grand

26:04

a month in cash flow and then when i saw the

26:06

ability to be all the refinance a property pull that

26:08

equity out and we purpose at equity and like this

26:10

is how i growth and then i learned seller

26:12

financing that was another strategy that allowed me to

26:14

to scales and then i learned ah

26:16

to syndicate that's another strategy i think

26:19

people get unlucky said the fear of change this

26:21

work in a friend you need to be able to create value

26:23

for yourself and for your partner and for your vest

26:25

as out there don't worry about the money if

26:27

you are really skilled a you know what you're doing

26:29

the money will be attracted to you we we

26:31

we talked about thinking in decades and and

26:33

have a data set up from the a lot of these multifamily

26:36

deals you may see a couple years

26:38

over ten year period where they're not

26:40

as good and for us is stork

26:42

we'd spent on the property

26:44

manager was an ally with our values and

26:46

might have been a six months or twelve month there were we had to

26:49

have figured out remove the person and and six

26:51

what was wrong and case that's what we've seen

26:54

over a period of time working with an r deals

26:56

but then you correct it's and then you're like well we

26:58

figured this out as we underwrote a correctly but

27:00

you know we had our by rec criteria the

27:03

yes there can be you know year to when there

27:05

were something goes wrong or something

27:07

funny happened in the marketplace but over that ten year

27:09

period in in our experience

27:12

are deals have worked out really well and

27:14

you made the point david about thinking about it over

27:16

a longer period of time in

27:18

addition to that you know i don't

27:20

know what the future holds but it doesn't seem like as a huge

27:23

appetite for the government to stop pretty money

27:25

i know there there you know that you're talking

27:27

like that maybe now little bit but if that

27:29

continues to happen the dollar continues

27:31

to devalue overtime there for the

27:33

real state's gonna be a had just going to be an asset that

27:36

holds valuable time so you deal with a few

27:38

factors there you can of saying okay this

27:40

is what the government's doing how do i myself

27:42

am in play the right games i think multifamily

27:44

sex that box i think you might be in a growth markets

27:47

a people are moving into that market that's going to

27:49

help with appreciation as well and then

27:51

if you can fine tune your management skills

27:53

there may be rough roads there but enough ultimate

27:55

get a fire the person that needs to be the

27:57

case and then he help improve upon it and

27:59

then over that be a vet and your peers i think you can be

28:01

helped me happy i'd never had a deal

28:04

the we've that we continue to hold now

28:06

that i'm you know i wish i would i want

28:08

to held not that we had one deal that

28:11

the area we we overestimated

28:13

the quality of the area and the resident

28:15

base it didn't work out you know so

28:18

when mrs it didn't work out the way we wanted

28:20

it to but we still i think me three million bucks in the deal

28:22

yeah in we're fortunate is is a growth

28:25

phase in the market yada yada yada i

28:27

think the market saved our ass on now when

28:29

it wasn't because we were like such experts savvy

28:31

investors but

28:33

besides that deal everything

28:35

else has you know over a longer

28:37

period of time worked out really well the let

28:39

me ask you guys this question one of the things that

28:41

has concern me with the freakin

28:44

phenomenon of like real

28:46

estate influencer syndicator

28:48

is that have come into the game in the last

28:50

three years and a posted

28:53

all over tic toc and they're raising money buying properties

28:55

and they like they don't have any experience managing

28:57

them at all is the

28:59

market has supported a lot of isaac bad

29:01

decisions and adult a good you guys in this i

29:03

went to be mentioning this i know you guys have learned

29:06

the hard way it's managing these things is

29:08

freaking heart wouldn't syndicate deals right

29:10

so they're concerned for me is that

29:12

people who are syndicating these these deals

29:14

and they're on a timeline three years five

29:17

year exit that's the only way we have

29:19

to give our investors back money as

29:21

long as the market keeps going up your fine

29:23

but the the problem with real say like he

29:25

said as the value matters when you're going to sell

29:27

it or when you're buying it and if you have

29:29

to attend of five years you don't know where the market's

29:31

gonna be at that point in the cycle and if you've gotta

29:34

get out that creates a problem is that

29:36

one of the reasons that you to sort of never

29:38

get deep into the syndication model or is

29:40

there different concerns david i think that

29:42

since one of the big issues for us were read

29:44

a book called small giants by bo burnham

29:46

i would recommend it was read the books and

29:49

chicken i did not want to be the next air b b

29:51

the next facebook we want to have a really nice

29:53

small portfolio with another family company

29:55

one of your control it's was your controller

29:57

destinies and i think if you're going to be in the city

29:59

for model your beholden to investors

30:02

there's nothing wrong with that mean we can start out that way

30:04

but after three to five years a lot of syndicator

30:06

make money on the back and how can

30:08

you even get get away from that put

30:10

a lot of money yourself on the lp side become

30:13

a live in a partner a your own deals have more

30:15

capital invested their so you can tell

30:17

your investors hey you know what we're gonna hold onto this

30:19

deal or better yet look

30:21

at a deal that you think you don't have to exit the

30:23

next five to seven years and talk to

30:25

your investors and say that investors hates

30:28

i would like to hold his are more time

30:30

horizon how you think about that if you invest

30:32

assists you know what i want my money back in three years then

30:35

like values based decision maker maybe that invested

30:37

doesn't go into this deal so yeah i think you

30:39

can syndicates and hold these deals longer

30:41

term especially as a reply component to

30:43

it or if or investors are on boards continued

30:46

to coupon clippers long as your bill manage this

30:48

deal properly i just think the allure

30:50

of getting acquisition fi of front and down

30:52

the back and you have no money the deal you get a fifty

30:54

percent the profits that lends

30:57

to people wanting to sell but i don't think

30:59

they have to sell the syndication if they

31:01

position themselves correctly with their investors

31:03

and if the really aligned with their investors i don't want to

31:05

kill the golden goose i've done so much work to find

31:07

his goose is pointing me money right

31:09

now is making my investors while seats

31:11

while on a cell up to three to five years i've done

31:14

that two times it's great he

31:16

had a great checks he had capital gains to pay

31:18

but i rather hold onto that asset digest

31:21

yeah no i think that the syndication

31:23

model lends itself to someone

31:25

and as the bgp you get compensated

31:28

when the deal sell so where we messed up on the syndications

31:30

is were used it's own in the deal

31:33

and we didn't put enough been to make it like

31:35

okay we can rifai this now can make sense for

31:37

such literally forced to sell and

31:39

a hate that i just don't want to hold

31:41

these deals enjoy it again i like adding

31:43

more deals and the the cost segregation but

31:46

, are some cases of degree we have one left

31:48

it is probably doubled in value since

31:51

the time we've we've purchased it but

31:53

the thing that scares me about newest indicators

31:55

about newest point is that they're

31:58

getting in the running up these

32:01

these syndications and in a bridge that

32:03

okay so lot of these folks were buying

32:05

bridge deck as the numbers were supported by

32:07

fannie and freddie so okay

32:09

now when that bridge that comes do we're

32:11

going to see a race bike there's one major risk

32:13

right there the second thing that i

32:15

think happens and i haven't seen

32:18

the books on these other indicators but

32:20

the makes me extremely nervous and i say

32:22

this is a cautionary tale for folks

32:24

that are investing with syndicator try

32:27

to find out where the draw payments are

32:29

coming from everywhere what do i mean by that

32:32

did they raise a large cap x budget

32:34

or a potentially pulling from that catholics

32:36

budget every month to make sure they're hitting their

32:38

a percent preferred return that's

32:40

where i think get a little dicey

32:43

and some these folks and and and i would bet money

32:45

on it that's it that's happening today

32:47

where there's catholic sponsors been raised that are now

32:50

supplementing a drop a mid already

32:52

present press that probably hasn't

32:54

been really earned so i would

32:56

watch out for that and try to

32:59

ah if if i'm honest and a cases in l p

33:01

make sure that that's not the case because

33:03

i probably don't want to put money in with that person again

33:05

if they're not able to actually make the deal performed

33:08

the way they presented as i think that's a that's

33:10

a huge risk and in addition to that

33:12

i don't know that it's super smart to

33:15

start placing large amounts of money

33:18

with a new

33:21

syndicator the at maybe

33:23

you going to get more gp maybe there's a benefits you

33:25

their butts those guys that have been doing this for years

33:28

with a really strong track record i

33:30

would probably if i was going to invest in the l p

33:32

said lean to those folks more

33:35

and somebody that may be you know just

33:37

getting started the last couple years or

33:39

doing like you know more risky investments like

33:41

mobile homes and and some of these things

33:43

i that that would make me a little nervous if

33:46

i were to be placing my you're hiring capital

33:48

at risk the know together comedy

33:50

know i just i love a jake said

33:53

big fan of brian burke he spoke it mm most

33:55

really messy fourth or event is

33:57

a fantastic syndicator go out there and find

34:00

the bribery the world and place you capital

34:02

them they've been through multiple market cycles

34:04

they vince who's deals that they bought

34:06

and sold they have a really viable

34:08

strong business plan and i think

34:10

they're people that do what they say you look

34:12

at brine he performs he's gonna

34:14

make you whole if he doesn't that's just kind

34:16

of person i know that he is so glad

34:18

there and find those people's if you are syndicate

34:21

with others yes so i guess what

34:23

kind of move the conversation a little bit to

34:25

sort of specifically hone in on

34:28

this market cycle and the economy

34:31

is it all over are we done for is the

34:33

the gig up or are you guys feeling

34:35

about however thing is actually

34:37

happening like playing out today because you

34:40

are going to you tube which is like where i'm

34:42

at most of the time everyone's

34:44

thumbnails or read him guilty of a

34:46

here and everyone's you know the show that the graph

34:49

declining and than interest rates are rising

34:52

damages your your on like what we're

34:54

seeing today they can i jumped

34:56

in we sent a like that everyone's get not i'm gay men

34:58

are itself never seriously i think that

35:00

yes yes rates okay rates

35:02

of moves okay but what does your underwriting

35:04

tell you because i nodes for a fact that a lot

35:06

of pricing is move downward as well said

35:09

the you get you just get a be a rational human

35:11

and continued to just dial

35:14

in their bi re criteria so for

35:16

us we're still actively looking to deals

35:18

you know in our market and the thing that

35:20

that makes me sleep well at night is i know

35:23

that i'm in a growth market there's population

35:25

growth there's demand for these rent those the

35:27

was rental units and we having

35:29

a great data sent front of us every month

35:31

which is our portfolio in our market

35:33

which has some the highest demand that we've ever

35:35

seen historically so i think the thing

35:37

that saves you right now is making sure

35:40

that you get into market that has legs

35:42

to it because ultimately you

35:44

know are we going to be in a recession next quarter

35:46

by definition it's it's it's two months of

35:48

negative gdp are you see the two quarters back

35:50

to back negative it's do we end up their

35:52

next quarter probably is it then quote

35:54

unquote a recession okay yeah

35:57

has economy sucks for like the last six months

35:59

in a certain in my guess it has

36:01

am i going to stop been active or my going to

36:03

find opportunities this is the same strength stress guys

36:06

have multiple tuesday or two but that's why we learned

36:08

syndication it does it's honestly something

36:10

we actively wanna do so that's why

36:12

would we learned we with gun or finance deals

36:15

finance case we've case we've lease options we wanted

36:17

have a great exposure now we're going into development

36:19

so in any part of the market cycle

36:22

organ be relevant an active so am

36:24

i saw a downer take my foot off the gas right

36:26

now not at all because i'm clear

36:28

on what i want him and what i'm going after

36:31

and i don't believe that multifamily

36:33

housing especially in the markets that were buying

36:35

and is not can be relevant because

36:38

there's a recession this is a beautiful thing

36:40

about this is so we're in people need a

36:42

place to live if there's if there's you

36:44

know jobs if there's population growth they're

36:46

going to need you this is not a commodity

36:48

that you buy an amazon yet i i

36:50

think that i'm i'm

36:53

very comfortable in our position and and

36:55

we have anybody in eastern

36:57

tennessee wants to sell something you know we can

36:59

look us up and sued over be more unhappy

37:01

underwrite unhappy underwrite gonna accept rob

37:04

ah i see grilled for let me share a quick

37:06

story with yields i'm a big fan of

37:08

j scott they are pockets i had

37:10

a privilege to interview him a couple times his books are fantastic

37:13

when did he start flipping homes he started

37:15

flipping homes back in two thousand eight probably

37:17

not the best time to start flipping homes rights

37:20

but he learn the business it's not when

37:22

used the bottom line is

37:24

use the are only able

37:26

to stock where you're ready to start he was sick

37:28

of his corporate life you want to start aunts and the

37:30

same thing with jake myself we started looking at assets

37:33

in two thousand and eleven there was no gdp

37:35

did as eleven there was no money there

37:37

was still the loop net but there was no sentiment

37:39

and it was a lot of risk so for us

37:41

i was radios sample my restaurant job

37:43

jake was fed up as being a pharmaceutical reps

37:46

that's when we started i think now

37:48

is the perfect time to start because you're going to need

37:50

several months to have broken relationships

37:52

to start talking to investors to start refine your

37:54

business plans to get into the market

37:57

and by the time you get it's with the cycles changed

37:59

again it is t three times

38:01

in the last two years that if you're ready

38:03

to start to start to days make a commitment

38:05

figure out what your wires and start

38:08

today whether it's single family homes where this

38:10

multifamily whether it's self storage where

38:12

there's mobile home parks picking nits learn

38:14

it really well education's times actually

38:16

was results and understand why you're doing it's

38:18

and start and six months from now you

38:20

gonna look back and golf i made a lot of progress

38:22

i may not have bought a deal but i've selected my markets

38:25

and or few brokers i've gone to several meet

38:27

ups i've gone to the bigger pockets in october

38:30

i've done a lot of things i wouldn't have done i'm sorry

38:32

to position myself and before twelve

38:34

months goes by your i bought the first deals

38:37

and then two years goes by your friends going

38:39

to be like man you're lucky started real estate

38:41

and that it's lucky know you took that

38:43

you took the opportunity to start when

38:45

the market was quote unquote falling apart

38:47

because we can pick narratives to any part of

38:49

the cycle that we want to we've been doing

38:51

internal bukantz to the last four years of our jacobs

38:54

you know community and for the last four years all

38:56

i've been hearing is that the real estate market

38:58

the multi family is that are hi how many

39:00

out there heard that two thousand and eighteen was at a high

39:02

two thousand and nineteen high two thousand and twenty heights

39:05

was a lot of people who bought they've

39:07

taken a quote unquote lucky to last for years

39:09

so minute news host i

39:12

guess raised here is if you read

39:14

this start it's all about you just

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answer the races right before move onto

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42:20

also have a theory i really

42:22

like read talk about the the conveyor

42:24

belt theory with real estate's

42:26

i'm in the middle of a ten thirty one right now and

42:29

so there's urgency i have to be licking

42:31

an investment property right i'm not a full time

42:33

investor i ran a mortgage company or and or else they

42:35

t my i do other things so i

42:38

tend to sort of bouncer business to business depending

42:40

i like where though the line is

42:42

finished of smith who rented for reinforcements

42:44

but when i buying what i find

42:47

is there's this there's this a lie

42:49

that tells me i'm just gonna go look up

42:51

properties fine when i like radical offers

42:53

get the deal i'm done and it it never

42:55

works that way what happens is i quickly become

42:58

overwhelmed with realtors asking

43:00

questions dd be analyzed properties

43:02

a lot of stuff i gotta go figure out of five

43:04

going to do this or questions that

43:06

me to answer to even know if this is gonna work to

43:09

the way we have to actually working as we

43:11

current spicy and there's a column for properties

43:13

i'm interested in offers that we've

43:15

written houses that are in escrow

43:18

and we just have to start with that list and

43:20

like systematically go through it asks

43:22

questions they'd give assignment you're going to call the realtor

43:24

you're going to us look this up on air dna

43:26

and then moved through the columns it's it's

43:29

almost creating a process that will

43:31

risk that will end in a result that you

43:33

can't control your that's gonna go through find the property

43:35

and by it which is how i think a lot of investors

43:37

assume it's gonna work to new to speak on

43:39

the way you've built a system that

43:41

you are just you don't know exactly

43:44

how skyn worked out but you just keep turn in that little

43:46

jack in the boxing and eventually it's gonna pop i

43:48

think the most important thing david for

43:51

the beginning investors to understand

43:53

is your question is any

43:55

deals i needed the i need a deal let's

43:57

take a step back what is a deal

43:59

for you

44:00

the deal for you is that the same thing is a deal for

44:02

jacob g know so you have to understand

44:04

what the deal primers are for youth

44:06

when we started out was very simple we

44:09

didn't wanna get into the single family space

44:11

because we both had full time job so that's why we chose

44:13

multifamily to the first thing is seager

44:15

up what space or what nietzsche going to get into

44:18

i think the next thing is figure out what market

44:20

you going to get into those two things are

44:22

very difficult it's lot of introspection

44:24

and then from there what are your resources

44:27

number three do have capital you have a bouncy

44:29

if you don't will the you can't look for fifty million

44:32

dollar deal so scratch that asked starlet

44:34

a duplex are acquired think that's

44:36

really important and number is been

44:38

number forks what time commitments you

44:40

have if you're working eighty hours a week as

44:42

an attorney or the doctors you not going

44:45

out and doing this thing for times you

44:47

may find a jake or gino to hit yourself along

44:49

with does he have a strong balance sheets to understand

44:51

what your goals are with this as i think the most

44:53

important things and then from there

44:56

start looking at the deals that

44:58

you want to look at like i said jake and i we were

45:00

our first deal anything from ten

45:02

to fifty units were able to take down that

45:04

for as the us we chose knoxville tennessee

45:07

we knew what are casual primers were and

45:09

we knew what time can means we can make to the

45:11

deals and then as we started growing

45:13

along that's where he talks with the conveyor belts that

45:15

conveyor belt is really just a good deals on this

45:17

imaginary belts year one you get

45:19

your first deal you may not be doing so law that

45:21

the on your one but by year three hey

45:23

dave is had a tenth thirty one that deals

45:25

going to come off the conveyor belt whether it's cash flow

45:28

it's equity and you can matriculated a

45:30

good it's when of a deal the goal is to get as many

45:32

deals as you can on the conveyor belts that start

45:34

working for youth and then they start coming off

45:36

that belt these are buying other deals with or to

45:39

revise whether it's a sale he start

45:41

replacing repurchasing that equity back

45:43

into other deals so what you're

45:45

describing there is why exit strategy

45:47

become supporters at becomes a piece in

45:50

how you took what you bill and turned it into

45:52

something more and you know this is

45:54

actually a beautiful thing when you think about like

45:56

the tools of real estate the way that makes you money

45:58

is it turns into this

45:59

the

46:01

the know like this may sound cheesy but almost like a

46:03

symphony of music where you're

46:05

using all the pieces and they're working together

46:07

to create this result it's not get in

46:09

get cash flow quit my job live on the beach

46:11

that's how it appears to sound but

46:13

you're making money through equity and moan pay down

46:15

attacks strategy and and sometimes

46:17

that opens up doors to make some money through other businesses

46:20

and then you're moving equity from here to here and

46:22

been you when you read of the top and any by

46:24

in an emerging market with value add boom get

46:27

a ton actually be your castle as a keep laps he moved

46:29

into a castle market then you're saving castle and

46:31

using that as down payment on your next babies

46:33

are you add and he gets to be fine

46:35

when you start to get as vision of look at a property

46:38

and seeing this is the plan for this when and how

46:40

does it fit in to me it's a lot like a

46:42

coach of a team or you've got these players

46:45

and they all have different skills and you're looking at how

46:47

they would work together with you guys agree

46:49

or midas be midas little really romantic barrels

46:51

the right now dude i love that analogy week

46:54

we actually call it multifaceted multifamily

46:56

see the eastern out with an investment right

46:58

that one twenty five in a little cracked and that we

47:00

bought all the said we have said couple hundred units

47:03

are first revenue was the investor

47:05

properties but then j creator property management

47:07

company so there's company sec this your second business

47:09

and then from there we creek education companies

47:11

that's the next layer of business right there

47:14

and then we stop all the sudden we start

47:16

we development company and we have one hundred your real

47:18

seen mess and i were doing what whole life insurance so

47:20

you're have always molto businesses spawning

47:23

offer this one sport makes it work is that

47:25

jake and chino working together he's doing he's property

47:27

manager day to day and to the education

47:29

day dates and the great thing about is such

47:31

about beautiful symbiotic relationship there were able

47:33

to cross over and use each other's resources

47:36

are students are going to boot camps that

47:38

are owned by our power companies and

47:40

were able to learn and get our podcast and

47:42

actually make or property managers much better so

47:44

thinking about it that way that's where the long term

47:46

approach and i think you know we wrote the book the

47:49

honey bees all that multifaceted multifamily

47:51

but the way you describe the david is exactly

47:53

what we've stumbled into you don't know what you don't know until

47:55

he starts these are see me since worked together

47:58

and you and you that that holocaust the

48:00

symphony where things start working as a man

48:02

this is freaking awesome i just raise

48:04

capital from students right and never gonna get do

48:06

that or i just wrote a book over some brokers

48:08

the guns credible and all the sudden

48:10

you get on pockets and broker to start nicole that

48:12

call you back to eg throw live event the

48:15

of people come to live events and of a sudden

48:17

it's just much easier to get deal since you're

48:19

away i mean it works so well together what you've

48:21

described i think the key to

48:23

it though is is systematizing

48:25

the acquisition process because you'd never

48:27

want to turn the beacon where the magnet

48:30

off and and i think that's the key because

48:32

you never know when the deals going to come like earlier this

48:34

year we had a swell deals come through

48:37

and for for a traditionally for us those are smaller

48:39

deal ago i mentioned before three to five

48:41

million it was processing

48:44

all those deals at one time to they're using maybe

48:46

twenty two hundred fifty units it at one time

48:49

you have to take with the defense gives you and

48:51

i think the key is that if all the deals

48:53

come in one month if you want

48:55

to grill you gotta take those deals because you may

48:57

go another six eight twelve months until something

49:00

fits your criteria and that's okay

49:02

when you're buying larger deals i think making

49:04

sure that beacon has never turned off and you're always

49:06

you're you're getting your a your broker calls

49:09

in your your maybe you know i'm

49:11

networking with your deal dogs so we we have

49:13

something we called deal dogs and they're like are direct

49:15

the seller crew that calls all

49:17

the owners in the markets that we're in a

49:19

to try to drum up business world buy direct from

49:22

so you had these different avenues the systematize

49:25

and look you might be on vacation you might be a disney

49:27

you gotta run into the grand floridian grand use the

49:29

a the little opposite where they have they you know

49:31

a computer areas set up with you know facts

49:34

is because you gotta get with title company that that's

49:36

real life okay that's what happens is a real same bus

49:38

you just gotta find those avenues to work

49:40

that but you can't turn that beacon off because

49:43

to davis point you may be okay what ten thirty

49:45

one comes up gotta go find some in

49:47

be working you gotta have it on and in turn on

49:49

all the time and always be looking for cause otherwise

49:52

you're force yourself into a bad deal i think that's we gotta

49:54

really watch out for that's exactly

49:56

right for your ride bikes with genome

49:59

on the beach and i say hey gina we've got a deal

50:01

going on let's go back to the a the wives would be

50:03

argued a little bit saying i thought certification

50:05

jake well you know what we've got a deal we got a forty

50:07

you do we get a close so let's get back let's go to the bar

50:09

have a couple of beers and let's get back to the house and

50:12

a and do you gotta do return are a are

50:14

tandem bike yeah

50:16

no and i tell them not yet tandem

50:18

, with an expensive dang it it

50:21

got me peddling the british yeah

50:24

it's funny yeah that's exactly what he described as i am

50:26

going to educate you i'll tell you where we go and do

50:28

all the bad as this by easy to

50:30

handle all the proud papa by

50:33

just students bring your bed should you had an advantage

50:35

but i'm like a your the salts of your earth my brother

50:37

like yeah it's just like

50:39

the hardest part of real estate and it's also

50:41

it's think the most undervalued

50:43

like everyone talks about finding about deal

50:45

getting deal deal structuring a deal and

50:47

then we just stop it's kinda like it's want to have

50:49

want baby then you have then kid like actually

50:52

dealing with kid like do you know like got several

50:54

of it's different right so

50:56

any of us whereas before we move on jake about just

50:59

advice for people that maybe

51:01

are underestimating the work that managing that

51:03

property is going to take or how to do it well well

51:05

it's a classic thing if you if you do well in

51:07

property management typically they silva deal

51:09

and if you start the fire you said is this

51:11

really hard see like find that sweet spot

51:13

for people but altima gang once

51:16

like i said it's a fourth year if your phone the framework

51:18

once you buy it right okay that's

51:20

done once you finances that's over the

51:23

only lever you have left to pull

51:25

his good property management and i can

51:27

tell you from my experience good

51:29

property management can make or break

51:32

the the deal over time and you can really see a

51:34

huge spreads as you can fix those

51:36

costs and get those costs been a be done

51:38

but we see every month the same thing paid

51:40

floor and supplies paint floor and

51:42

supplies it's the same over and over again

51:44

so if you can dial in your management's and find

51:46

ways to in a purchase better were

51:48

like us were put in all twenty twenty

51:51

year lottery vinyl plague

51:53

and all of our unit so you know in the next three

51:55

years everything's years everything's twenty your florida

51:57

that's that costs is coming off the now

51:59

the

52:01

supplies okay so this finding

52:03

ways to release navigate

52:06

those waters in addition to

52:08

we've created a cap x team so a

52:10

lot of the stuff it's would be traditionally

52:12

subbed out were handling it in

52:14

house getting you know

52:16

better efficiencies in economies of scale so

52:18

it's a long game when have any other way and

52:21

i think it's really the difference maker in

52:23

why we've been so successful and will

52:25

do third party just focus on that's

52:27

in your own stuff you're not out there contracting

52:30

year your skills at other people

52:32

you're not a merchant marine

52:42

i'm going to movies onto the next segment of are so

52:45

viel , in this segment of the so

52:48

we're going to ask details about a particular

52:50

deeley done and we will fire them

52:52

at you between rob

52:54

and i alla you guys decide

52:56

which of you would like to answer but

52:59

the first question is what

53:01

kind of property is literally

53:03

just gotta deal with just just close as a for

53:06

unit mom and pop muna

53:09

with guard style built in two thousand two

53:11

thousand thought in knoxville median

53:13

income of eighty thousand dollars the

53:16

what i just the right there i gave

53:18

you my by right criteria right that's the

53:20

buyer a great area ideally just closed

53:23

and checked all the boxes loving

53:25

loving the steel and as stewards little

53:27

car wash wash a dji hookups throughout

53:30

mostly two bedrooms i'm

53:33

sweating it right now that's some sexy to me

53:35

okay to give me said it's are guess bro you are

53:37

sexy were us when ride the bike up front you know

53:39

that ssssss okay

53:43

question number two how did you find the

53:45

deal yeah and it goes back to we're talking

53:47

about before so we have our art or team of mercenaries

53:50

we ever deal dogs out there how and at

53:52

the moon are calling calling calling

53:54

out had this guy in the hook for probably

53:57

three months and we'd be kept trying

53:59

to set the meeting with him he

54:01

can we get on say with you can we meet you right

54:03

because it's a deal does really just need a gets

54:05

my foot in the door and then they're sending me and to

54:07

kind of close it out and said that sir that's how

54:09

we found it in advance we get a foot the door with us

54:12

guess how much was

54:14

though he was eighty thousand per door

54:16

i think that comes at like three point two

54:18

million roughly and

54:21

is so the guys that you know they finally got the on site

54:23

i've met with a guy felt kinda like

54:25

kinda like a deal had this white van had

54:27

needs fact company and yes

54:29

sometimes you gotta take on the role

54:31

of a sales rep when you're trying to acquire things

54:34

i think so many times people look

54:36

at the broker the person selling and think what

54:38

they're trying to sell me and that's the complete

54:40

incorrect mentality and the opposite thought

54:43

process so i gotta say with a guy

54:45

yeah he's kind of complaining oh look at these gas

54:47

prices and he's like you know damn screw

54:50

this biden guy in all this stuff and and like i'm

54:52

going a political but when you hear

54:54

this kind of stuff what you do is

54:56

you start to see okay this is where

54:58

this guy coming from unlike unlike cause

55:01

we're hundred bucks to fill up my truck so we're

55:03

building report that point we're finding like

55:05

common ground and something regardless of what

55:07

is totally political you know the conversation

55:09

my point but i'm just saying that's the kind of things

55:11

you find areas where you can sort of align

55:13

yourself and i let him talk and

55:15

and i was like well you did such a good job over

55:17

here with the brick and look so clean sidewalks are good

55:20

he had a lot of pride of ownership says he built

55:22

the complex himself so i'm

55:24

letting him you know we'll talk to me about

55:26

things that he did he was really proud of it and

55:29

then finally we got back in the white van and we start

55:31

hashes else deal dogs had a number in

55:33

mind that date that he tenet you know talked

55:35

about but he was like i could see can

55:37

england for some more sister was gonna what's can hold

55:39

me up with the steel the

55:42

bank i'm like what will tell me about

55:44

that what's the bank he

55:46

said to try to charge me a prepayment penalty

55:48

a forty thousand dollars or thirty thousand

55:50

dollars or something like that this

55:52

is what was guess this is what was holding

55:54

this guy up from selling because it was a prepayment

55:57

penalty okay and i'm really gets the meat

55:59

of this in a second so

55:59

good luck

56:01

don't worry about

56:02

i'm going to give you fifty thousand dollars more

56:04

today going to give you fifty thousand dollars

56:06

more take the rest take you haven't be case and take

56:09

extra fifty on top of the three point

56:11

two and will call it a deal happy

56:13

to do it closed you know overnight in

56:15

hundred units in the southeast where the real deal

56:17

we get it done he's

56:20

making like this is too good to be true he goes back

56:22

in a we send him a contract literally the next day

56:24

that's how we operate as we we don't want to lose these things

56:27

his attorneys asking my attorney what you know what's going

56:30

on with this you know this guy the real deal cause he literally

56:32

thought were like nuts or something to they are

56:34

from the extra fifty thousand dollars there's

56:36

when the thing appraised it was over four million dollars

56:39

only million dollars more than

56:41

what we got the thing under contract forks and this

56:43

is the mentality of these mom

56:45

and pops are not always easy a fine my

56:47

some common ground maybe for feel their

56:50

need we got to deal now

56:52

we get a great asset okay we're

56:54

going to absolutely crush it with this thing and

56:57

it's and it's new event is the second all the boxes

56:59

for us and all we had to do i didn't i

57:01

didn't i protruding out for three point two what

57:04

if i didn't and you know it was it worth losing

57:06

this deal over there fifty grand so we

57:08

have it on the back of his van got the contract

57:10

over close quickly

57:13

and and the rest is history and and we got

57:15

a great deal and he was thrilled because he built it himself

57:17

and his basis was much lower so the worked

57:19

out pretty well for everybody there regular

57:22

kind of gives us an idea of how you negotiated it

57:24

but how to jesse fun this deal yes

57:26

are just like with one dollar other deals with the

57:28

castle real park and we put it down and we

57:31

we did alone because typically so what

57:33

we did under steel we got a couple employs on a like

57:35

we we talked about afford you don't i had brought

57:37

the rest the table and what we like to do

57:40

such a deal this size as we do a

57:42

loan to costs which i'm sure been a many listeners

57:44

are familiar with will do eighty percent loan to caso

57:46

of a renovation budgets were gone and

57:48

is it a little little things here cosmetic like

57:51

what we're new countertops were paying the was

57:53

because of that old that that beige that

57:55

you know so many people son floored in the nineties race

57:57

of we're going to get net stuff out modernizing

58:00

the little bit strike and see on the parking

58:02

lot and little bit a little bit

58:04

of a gotta work and stuff like depp and very

58:06

minimal so going you know not that stuff

58:08

out and then will sound off then pasture where

58:10

i mean by that you know when we feel like it's a

58:12

good time to strikes we get two years i oh right

58:14

now we get the loan to cost five years fix twenty

58:16

fix your amps will set of that the fannie

58:18

or freddie probably like it's to be like a freddie spl

58:21

deal long term and will sit there whole that

58:23

get our money back of day right

58:26

that's or describes what you're doing with it as well

58:28

so what's the outcome and so far

58:31

you know it's we've , in china

58:33

was been missing for like little for months now so simply

58:35

forget who we've got a little bit of work we got him in turn to

58:37

unit but it was just kind of a new

58:40

yeah literally just kind of went one of the last

58:42

on but this is i think personally

58:44

i value the thing as you know hundred twenty door

58:47

door know if i if i'm gonna put it on i got my

58:49

personal financial statement rents word in a red around

58:51

nine hundred both and we gotta but were taken the twelve hundred

58:54

twelve yeah i think short

58:56

term just thrilled because these look bee stings hard

58:58

to find this is it is a long term you

59:00

know bricks nice complex forests

59:02

and know i'm just thrilled mean i get excited

59:05

as if we get on say negotiated directly with a guy

59:07

that's kind of you know my highest and best use

59:09

and that's why when in of the guys

59:12

get something on the hook i go it's

59:14

not like wow you know can we look this

59:16

time he can me and dup everything else i'm going because

59:18

these these deals literally for

59:20

the average person at they went about this deal

59:23

the potentially retire the machines your life forever

59:26

davey point the mothers deal to was a set

59:28

of the two thousand five build we can constantly

59:30

hold his deal for next twenty to thirty years

59:33

and it'll still be pretty brand new there won't be that

59:35

much cap x requirements that's why we liked his

59:37

deal and to hold a long term not there was

59:39

an older deal some people

59:41

say you know to nineteen seventies build i'm going

59:43

i'm personally a lipstick on a pagan may be flipping

59:45

out that's not this deal this deal

59:47

ten years from now the median incomes going to continue to grow

59:50

that part of the market rents are going to continue

59:52

to rise and the guide built it so well

59:54

he's a concrete between the first the

59:56

second level he really built it

59:58

really want to last for long time so

1:00:00

it really did check off allow the by recreate

1:00:02

your and that's why see another decks a

1:00:05

yeah that's why that's the exit strategy eggs shreddies

1:00:07

the whole distinct refinances things

1:00:09

and whole the singh from a long term says gonna

1:00:11

continue to piss me off the next fifteen

1:00:13

twenty years indo would you say

1:00:15

that there is a particular lesson that you learn

1:00:17

from this the yes don't quibble

1:00:19

over fifty grand via don't don't don't

1:00:22

squabble over fifty grand central i get fifth

1:00:24

and i think honestly oh you know david

1:00:27

said before the was real cheapo as

1:00:29

a gig and ice can really raise

1:00:31

your hands and say that we're just as cheap as david probably

1:00:33

cheaper but we yearn investors his

1:00:36

price vs value a yacht consumers

1:00:38

look at price as it could best is looking

1:00:40

value i'm willing to give a fifty

1:00:42

grand today knowing

1:00:44

that am i asked it's gonna be worth two million dollars more

1:00:46

three years from now i i mean if

1:00:48

you can do that and and believe that

1:00:50

gratification you will become wealthy but it's

1:00:52

just so hard as a consumer you

1:00:55

know you have the consumer mindset you're worrying about every

1:00:57

penny every nickel and i applaud jake he didn't

1:00:59

even telling me that he's like you know what dude i'm gonna give this guy snow

1:01:01

fifty grand once he told me told did that only dude

1:01:04

power to five years ago jake would not

1:01:06

have done that jake would have quibbled and

1:01:08

fought with the guy and said hey pay nothing

1:01:10

you owe the bank and would have lost have deal but

1:01:12

five years later jake is actually thinking

1:01:14

you know what it's fifty grand but i'm going to

1:01:16

make us make couple of million dollars off this transaction

1:01:19

so don't be penny wise and pound

1:01:21

foolish wherever that is think long term thing

1:01:23

price vs value you all listening

1:01:25

to this right now or investors stop being

1:01:27

consumers start being investors and start

1:01:30

thinking about having that long-term mindset you

1:01:32

hear that right guys right said i'm i'm actually thinking

1:01:35

it can be done he would actually

1:01:37

say together in the other thing i did that he alone

1:01:40

in ah sleaziest you gotta

1:01:42

you gotta go in hard and the clothes i sold

1:01:45

our credibility there was no

1:01:47

retreat i was very clear with him we're going

1:01:49

to close this thing probably about

1:01:51

forty five fifty days but give us give us sixty

1:01:54

okay there's no retraining going on

1:01:56

because missing with our own cash we're gonna

1:01:59

move quick when i'm going to bust your chops

1:02:01

we had to send our team in with accounting

1:02:03

to go through his books that were just

1:02:05

god awful handwritten chicken scratch

1:02:07

though we the we did everything

1:02:09

we could to secure the bag right

1:02:12

the cool have their scare the bag dog can

1:02:15

thanks anyways but we got it done we we got

1:02:17

it done was cured it ns and the rest

1:02:19

is history so worked out well but you gotta because he can't

1:02:22

he can't can of oh did i wanted to desist he

1:02:24

still want to not do i get to retrieve the said

1:02:26

nothing yoga hard on these deals and

1:02:28

it it's near well worth it when you find

1:02:30

the one them as you would say you

1:02:32

gotta stick it just say it again and

1:02:34

say what you gonna do you have to move it

1:02:37

is part of the cycle you gonna move fast this is part

1:02:39

of the market cycle you have a deal you may not

1:02:41

be able to get on sites you need to really

1:02:43

move fast as part of the cycle it will change

1:02:45

but that's where we are a now probably

1:02:47

have some to the read ask i guess last

1:02:49

question here on our on our guild deep dive

1:02:52

who was a hero on the team for

1:02:54

this deal the i would have this is

1:02:56

are counting folks because literally they are

1:02:58

going in with hand written handwritten

1:03:01

ledgers on the rent role they

1:03:03

did not have a piano and we had

1:03:05

to physically take all this stuff and packages

1:03:08

for bank to get you know as here's

1:03:10

a here's a good thing we have a great report was a community

1:03:12

bank that pretty much is given us money when we say hey

1:03:15

we may for this deal but if

1:03:17

we didn't have that you know having a in a crate

1:03:19

the stuff to get them confident as the appraisal

1:03:21

help to ah but there's a lot of

1:03:23

heavy list because look this was the

1:03:25

the most mom and pop you

1:03:27

could ever imagine no financial records

1:03:30

basically whatsoever so my whole thing was

1:03:33

the human bodies in their yes we inspected

1:03:35

i'm okay they look like they're they're cleaner

1:03:37

taken care of the units and it does the rents

1:03:39

whoop will kind of manufacture the rest of it not

1:03:41

not negates deceiving way but will

1:03:43

manufacture what you know we think

1:03:45

this will look like him what we can do is because ultimately

1:03:48

a business part of marcus cycle i

1:03:50

joke about this but many times were buying boxes

1:03:53

okay we're going where by boxes

1:03:55

were using loan to cost and were buying

1:03:57

our where we're going to take this in the next two years

1:03:59

it wasn't always like that twenty fifteen i'm

1:04:02

like i'm being cash and cash actual cash

1:04:04

and cash from day one this is not

1:04:06

this deal necessarily still cash flows

1:04:09

but there's many other times were buying deals that

1:04:11

are you know this is can be it's a one to

1:04:13

two year before we see any gratification out of it and

1:04:15

that's okay too because we're in for the long haul awesome

1:04:18

well that was very informational i

1:04:20

loved the detail that you guys gave us on this deal

1:04:22

as well as how you got to the points

1:04:24

he got there when i was thinking about is what's the our ally

1:04:27

and fifty thousand dollars turn it into a billion

1:04:29

them you that's not bad at all because

1:04:31

he had the right perspective when you were going

1:04:33

into so easy to miss

1:04:35

the force the force trees when you get into real

1:04:38

safe especially when ego and emotion and everything

1:04:40

it's about so busy as three transparency

1:04:42

there it when i was the deal deep dive remember

1:04:45

you could do more deals with the help a bigger

1:04:47

pockets tools and resources now

1:04:49

let's head over to the last segment of the show it

1:04:51

is the world famous famous for

1:04:54

famous

1:04:59

a little bit of the show we ask every guess the same

1:05:01

for questions every single episode

1:05:03

and we're going to the same with you guys

1:05:05

question number one because he needs take turns answer

1:05:08

year what is your favorite real state

1:05:10

book do you do i

1:05:12

gotta go with the systems book here and minutes a

1:05:14

scaling up not necessarily real

1:05:16

estate book but i think the thing most people

1:05:18

need and what they lack is

1:05:21

creating a business and this is this is through

1:05:23

colleges this is that this is

1:05:25

through high school buses through you know general

1:05:27

society you need to operationalize

1:05:30

systematize your business and i think that's what

1:05:33

most real estate people are lacking not

1:05:35

necessarily the deal stuff it's like once they get it

1:05:37

what do i do with the management component i think scaling

1:05:40

up really applies itself well to realistic

1:05:42

in for me understanding

1:05:44

the numbers when i started out was was challenging

1:05:46

debt service cupboards ratio cash on cash

1:05:48

cap rates i was a big fan of frank ellen

1:05:51

ellen he's written several books on on

1:05:53

all of these different metrics and for

1:05:55

me starting out understand the numbers

1:05:57

i would fall in love with the deal i

1:05:59

also yeah

1:05:59

the the i need to fall in love with the numbers alongside

1:06:02

with fun love the deal and francs books really

1:06:04

helped me out by doing that

1:06:07

awesome question number two

1:06:09

favorites business book

1:06:11

i think a small joints book the the gino

1:06:14

just you know mentioned earlier on his been really

1:06:17

important says because i read earlier this

1:06:19

year and as wow it's

1:06:21

okay not to force yourself

1:06:24

to do deals you know just

1:06:26

to like post it on instagram or like oh

1:06:29

we just close the thousand and says you look at we

1:06:31

were so bad ass records that's what happens we get

1:06:33

we get out there we go on the social media we

1:06:35

see what everyone else is doing as it

1:06:37

is sir support us and like a weird had space we're going

1:06:39

to grow twenty to thirty percent on our top line

1:06:41

this year and the real with that and that's okay

1:06:44

and then the small giants book basically

1:06:46

your talks about companies like clif bar

1:06:49

that didn't take the money and what i mean by that

1:06:51

didn't take the private equity money to take my from

1:06:53

outside sources we control everything that happens

1:06:55

within our business because it's our funds a case

1:06:58

where the majority shareholders were driving

1:07:00

the ship and as i think the thing

1:07:02

as scares me most this world as someone telling me

1:07:04

what to do so that doesn't ally

1:07:06

with my values and and having those investors

1:07:08

on the you gotta really said think like do you

1:07:10

want to create their business and ultimately for us

1:07:12

it was in know we did a few other men

1:07:15

it just wasn't a great fit for so i think you

1:07:17

know that that small giants book really resonated

1:07:19

with me and now we have people on our team

1:07:21

is getting into deals they're growing a welcome had

1:07:23

this family attacking everything

1:07:26

multifamily that they care about we have

1:07:28

guys and a cap exteme guys in the main is t

1:07:30

now that's wow we're

1:07:32

watching costs and will be closer because it's are

1:07:34

dollars in their deal as well so

1:07:36

you know that that book pro had been hardest most

1:07:38

recently i get to books that

1:07:40

really affected me the first one is t r backers

1:07:43

secrets of the millionaire mind back in two thousand

1:07:45

and eight when i read it i was victimhood

1:07:47

was victimhood blaming everybody was blaming the economy

1:07:50

as blaming the president i was blaming the restaurants

1:07:52

are claiming in the streets when i figured

1:07:54

out that occurs really talk about responsibility

1:07:57

of your fruits or your roots i didn't have the skill

1:07:59

sets the money and from

1:08:01

for me once i understood that responsibilities

1:08:04

by myself by becoming a better person laurie

1:08:06

the skill sets everything changed

1:08:08

me my mindset allison mindset blame anybody else

1:08:10

i blame myself for not learn the skills what

1:08:12

they do a hired coaches hired mentors

1:08:14

listen mentors podcasts doing all that was truly

1:08:17

important truly important the second book i think everyone

1:08:19

should we steam dummies book seven habits i

1:08:22

read it back fifty years ago didn't

1:08:24

have much impact around a couple years ago

1:08:26

i mean start with the ended mind people

1:08:28

see the world as they are not as it is all

1:08:30

these things that he talks about

1:08:33

it so revolutionaries so changing

1:08:35

a really am in one the best for me person's

1:08:37

of on the books ever out there i love

1:08:40

the seven habits and recommend that everybody

1:08:42

awesome and so when you guys

1:08:44

aren't off on nice draws on your

1:08:46

tandem bikes what are some of your hobbies

1:08:49

this is gonna sound so freaking corny so

1:08:54

add another couple i guess the sweaty seventy we bought

1:08:56

this that lake house that need is

1:08:58

you know like l a lotta renovations like a mid nineties

1:09:01

so i pretty high on of

1:09:03

time into that in the air just cleared

1:09:05

like three acres and we've gone to scan

1:09:07

a boss the wall and and renovations and

1:09:09

so then i added as seventeen acres down

1:09:12

the road and ipa like a shooting range in like this

1:09:14

whole like a tv course and all

1:09:16

his stuff and then i just i just closed on a penthouse

1:09:18

in downtown knoxville that where we can do some

1:09:20

renovations tune in a rooftop to it's of i

1:09:23

enjoy real estate like on the personal

1:09:25

side of things as well just to

1:09:27

transform it and and do fun things

1:09:29

and can a crate this and is different opportunities

1:09:31

for my family ah so you know

1:09:33

doing do next and stuff in my free time and

1:09:35

then not in a can hit the gym keep for simpler

1:09:38

on here are the most part of

1:09:40

part masseur anyone can say building gun

1:09:42

ranges and ranges tv courses as cheesy

1:09:46

dude it's everybody they can go out i can whip

1:09:48

up a chainsaw on the weekends and like you

1:09:50

know it's it's it's pretty fun so we we enjoy

1:09:52

that some

1:09:54

so cheesy but just being the most awesome

1:09:57

man on the planet that vague

1:09:59

middle of the right after vessel

1:10:01

i have to contend with so my hobbies your my hobbies

1:10:03

are my was a fishy with my kids i live in st augustine

1:10:05

i go fishing off the shore acts

1:10:07

and recently about a year and a half ago i started singing

1:10:10

opera because the kids will start singing opera

1:10:12

unlike while they're going to church on sunday i'm not

1:10:14

singing with them they're going acquire wednesday nights

1:10:16

on my gone or them so again to

1:10:18

sing opera as opera as hobbies

1:10:20

when you get you to record our

1:10:22

intro and sauce fs i'm

1:10:25

to say goodbye

1:10:27

and active since you guys enough you love and i'll i

1:10:29

love refund it sounds and he's like

1:10:32

will ferrell from stepbrothers is beautiful yes

1:10:34

exactly or as a i did notice your voice

1:10:36

sounded i did combination of fergie and jesus

1:10:38

in that brief wow that's that we

1:10:40

got as i need to see a video of you

1:10:42

to on at santa bite in st augustine

1:10:45

riding together with gino singing

1:10:47

and i'll figure out what jacob be doing

1:10:50

be doing probably sit in nominal can be pumping

1:10:52

a dumbbell yeah that's exactly right like

1:10:54

you've got no hands on the bars he's doing

1:10:56

with a chainsaw brow with a chainsaw

1:10:59

saw say yeah i it eats

1:11:01

of your opinions what separates successful

1:11:03

investors from those who give up failing never

1:11:05

get started

1:11:07

the me we don't lack motivation

1:11:09

we lack clarity and and i was

1:11:11

a shining example of that for years before

1:11:13

i got partnered up with jake i

1:11:15

did a mobile home deal with deal with

1:11:17

bad the did a pit bull mix use deals

1:11:19

new york don't really bad once it became

1:11:21

clear about the vehicle by one was multifamily

1:11:24

and i started getting educated i find the mentors

1:11:27

i sound gay guy focus solely

1:11:29

on multifamily it took a look at a time

1:11:31

to get their tracks you get that going once

1:11:33

it became clear what my goals were and what my

1:11:35

endgame as i think that seems everything

1:11:38

for me and then you know having an amazing spouse

1:11:40

having an amazing partner that really helped

1:11:42

that accountability peace if you try to do by yourself

1:11:44

sometimes it's hard sometimes although yourself

1:11:47

you don't have a different perspective you live

1:11:49

with somebody bounce ideas off of i mean

1:11:51

that's what really saved mean and jake we had

1:11:53

that mastermind we started were both really

1:11:55

hungry both work really hard but

1:11:57

we both clear and our goals we both had our law

1:11:59

or value that we're really in alignment and you

1:12:02

know ten years later was still doing deals together with

1:12:04

still partner up with still spend a lot of time

1:12:06

together we go on vacations together and

1:12:08

that for us for me especially

1:12:10

that accountability peace and having somebody

1:12:12

to enjoy the ride with his with

1:12:14

his help me and i think a lot of people they lack

1:12:16

that they they really think have not had

1:12:19

that accountability piece of think of doing it by and i themselves

1:12:21

a can get challenges sometimes and not having

1:12:23

a partner can be challenging yet a

1:12:25

piggyback up and a little that i think the biggest thing results

1:12:27

as if they the

1:12:29

the yet to submit to

1:12:31

been one hundred percent responsible for their outcomes

1:12:34

and the only are like the

1:12:36

opposite to that is when

1:12:38

victimhood creeps in ends

1:12:41

you know ultimately if you want to be successful in the space

1:12:43

i think it's very hard when those two things start

1:12:45

to blur it you not

1:12:47

a union worker you're not for newer when you're in the space

1:12:50

you don't get the you know the weekends

1:12:52

in this that when you want it and so if

1:12:54

you're going to feel sorry for yourself because you don't get to watch

1:12:56

netflix for six hours and and

1:12:59

you know you you gotta do something in the weekends and

1:13:01

man like my kitchen table looked at and in nothing

1:13:04

to do i should never touch accounting but my

1:13:06

my you know kitchen table early on it looked like

1:13:08

you know some accounting mess because we're trying to figure that out

1:13:10

early on and you know there's watching football

1:13:13

games and doing all this stuff so i think that until

1:13:16

you realize that everything that comes into your life

1:13:18

you're responsible for it you're

1:13:20

gonna struggle of a lot of times

1:13:23

with mindset and look yeah we're

1:13:25

kind of joking about before there's they this

1:13:27

forty percent of the folks that the tune in

1:13:29

you know haven't done haven't deal yet then

1:13:32

gang this is very simple the biggest

1:13:34

difference between the folks out there that haven't started

1:13:36

getting to this game the folks at haven't is gonna come

1:13:38

down your mindsets are you responsible

1:13:40

for all your outcomes are you doing everything your power

1:13:43

to see it through and then are you looking in the mirror

1:13:45

seen that is my fault when doesn't work out for me

1:13:48

if you're not you're going to continue to suffer

1:13:50

in life and to figure that out and it's

1:13:52

it may be say like a little rough little aggressive

1:13:54

but i think it's as simple as that and

1:13:56

then and then when you start to let the victim the

1:13:59

been you're doing is ultimately hurting

1:14:01

yourself because you give yourself a pass

1:14:04

so , hopefully know that

1:14:06

impacts someone in a positive way they can see through

1:14:08

than a magistrate to be it but that's you know that

1:14:10

the air is it a lot of a struggle with and i think being

1:14:12

get past that and just humble

1:14:14

yourself and say look you know if it if it's

1:14:16

meant to be it's up to me kind of thing it's

1:14:19

gonna take you farther in farther slight than in most things

1:14:22

very very great very wise are

1:14:24

very last thing here is could you tell us

1:14:26

where people can find out more about gino

1:14:28

nj the and your webs

1:14:31

not not sure what an entire web is but a yeah and that

1:14:33

w w dot thing hit us up at jacob's you know dot

1:14:35

comming find out about our conference a

1:14:37

you know multifamily mastery five is the only

1:14:40

i'm event that we do it's november fifth and

1:14:42

sixth that we opened to the general public everything else

1:14:44

is is sort of you know jake and gino community only

1:14:46

so can have some amazing people there gino's

1:14:48

going to be singing opera like will ferrell

1:14:51

in stepbrother so i mean that

1:14:53

alone you should probably get a ticket you know it's a financial

1:14:55

vacation for small people it

1:14:57

would by human or can people find the on the internet

1:15:00

you can find me a david greene twenty four

1:15:02

because there was twenty three other david greens

1:15:05

and had a good mind

1:15:08

then again i gotta catch brain internet is even though

1:15:10

he's not hosting a park as he still has way more followers

1:15:13

than me if he lets me know it every single time he sees

1:15:15

me saw say i'm not too proud for a pity follow

1:15:17

please feel free you're

1:15:20

just follow me if you want to i don't want a pity follow

1:15:23

like give you a want you to like my content and

1:15:25

be all in by the you could buy me on you do

1:15:27

that raw built or an instagram at raw

1:15:29

built or on to talk if you'd like

1:15:31

at roberto that's a total flex

1:15:33

like i've got so many followers already i really

1:15:36

did city saw city saw

1:15:38

now that's that's are you have three times the amount

1:15:41

of hours as as me on instagram so

1:15:43

you know i really appreciate you guys be in here there's

1:15:46

very few people that have as much experience as

1:15:48

you do and when you've walked

1:15:50

through the fires of whatever

1:15:52

it is that you're going through for us real states

1:15:54

you come out with this perspective

1:15:56

on the right way to handle things it's very different

1:15:59

than the people that are first started so why they

1:16:01

diaz for your time that you've given us you

1:16:03

have any last words before we let you get outta here

1:16:05

for me just want to thank bigger pockets and the

1:16:07

community for the privilege of speaking

1:16:09

to them and just for their time as you guys

1:16:11

to be doing something else out there so just

1:16:13

thanks for taking the other time out the list of the jake

1:16:15

chino robin days

1:16:18

like i thank you yes right i'll

1:16:20

let you go girl gave it before you ask i've got i've got

1:16:22

no final words know profound statements

1:16:25

that i figured at this point that you he very

1:16:27

shot the entire shot throughout the episode

1:16:29

to death i , ask is the

1:16:32

i was as rob what his last words are right

1:16:34

after i guess like drops the might and give

1:16:36

this amazing thing and my grab your to follow that

1:16:38

is he's always like a horse why do you

1:16:40

put me in his position as a specific

1:16:43

people and with tears and like if you believe

1:16:45

in yourself you can do this and it's like this

1:16:47

varied as profound and emotional mommy

1:16:49

that what about you man on my sister sister

1:16:51

houses is it a slight death

1:16:54

related dog it's made it through life in

1:16:56

that inspirational successor

1:16:59

i , guys this is david greene

1:17:01

for robbed a three legged dog i was solo

1:17:03

signing off no

1:17:05

this is my eyebrow my camera brought my

1:17:07

my this was my old you tube of i

1:17:11

just realized that in fluff those pillars well

1:17:14

regardless hopefully no one noticed that use

1:17:16

yeah like shop the pillow that on my god we're

1:17:18

good to good you know your

1:17:20

fast for the entire i wish we could include this

1:17:23

this is selfless

1:17:31

i'm no so

1:17:33

authentic or

1:17:37

i went account me well you see someone must

1:17:39

lose the pillows

1:18:01

stocks are dipping deeper into a bear market

1:18:04

inflation is taking its toll on families and

1:18:06

your savings in the feds continue to raise interest

1:18:08

rates so what does that leave the real estate market

1:18:11

here from the experts that bigger pocket that they break

1:18:13

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