3 Episode results for "Aaron Chatman"
5 Doors by Using Seller Financing for the First Time with Aaron Chapman
"This is the real estate rookie show number twenty seven. I'm just talking every a second to talk to you about. The anything with property. Especially, if I can see that they're like construction workers or something like that. The deals are out there they just got to be found. By name is absolutely care and I am here with my co hosts belief, they may hia who did not get burned episodes Josh. So our guest is Aaron Chapman and he hinted a little bit. You know before we started recording that he might just mentioned something about the biceps, but he didn't. Score. It's fading away. Gosh I got away scot-free twice in a row actually. So that's GonNa be great but we have a great show today Aaron Chapman talks about him and his wife like double house hacking with their multifamily that they purchased losing their job in the middle of buying it and having to put the loan in another person's name I won't give the secret out yet and just pushing through those nose to finally get his. Yes which ultimately resulted in getting the rental property. And it's not only just with the financing on that when you were talking about where he lost his job but he also. Can't get financing on another deal and get seller financing when the lady originally told him no, he goes back to her options and I think that was my favorite part as how he gave her options and didn't just say, Hey, sorry, I can't do the deal or this is final offer take this or leave it. If you're interested in seller financing, this is definitely the show to listen to. But before we bring our Aaron Chapman, let's hear a little bit from our show sponsors. Today's show is sponsored in part by rent to retire look not everyone can buy twenty, five, thousand dollar properties where they live right just like Ashley can. But if you're having trouble finding local deals that. Cash flow and you're looking for an easy entry point into investing that isn't going to require a lot of time every week checkout rent to retirement that's rent to retirement. They offer fully turnkey properties that are already renovated least and manage allowing you to invest with confidence out of state you can choose from single family or multifamily in a bunch of different markets to maximize cash flow, appreciation and equity the perfect trifecta plus they have a network of lenders to help with financing including self directed IRA loans, the best investors put their. Money where it makes sense. So visit to retirement dot com that's rent te'o O retirement dot com or you can call three, zero, seven, four, two, one, four, zero, four, nine, that's three, zero, seven, four, two, one, four, four, nine to learn more about how you can get started investing in some of the best cashflow markets today Aaron Chatman welcome to the show brother how you doing doing good man doing good. How are you guys really good start off telling us a little bit about yourself and how you got started in real estate. Twenty. Four years old I live in minutes out of Louisville in Jeffersonville. Indiana I have two little dogs that love and I'm actually about to get married in October to my best friend. Some pretty exciting. Thank. You pretty excited about the I got started in real estate a year ago is when I closed on or first property do plex here in Jeffersonville and I got started basically bigger pockets just by happenstance searching podcast and when I did it was all downhill from there as soon as I found it that was running star I dug right in got the books Brandon Turner was like Dunk. The epiphany was the kick I needed to get me where I was going. So yeah, that's especially I got started is Brandon Turner the new Robert Kiyosaki. Our Aleksei I would say he's right there with Robert Sake I read rich dad poor dad when I was eighteen, a teacher gave it to me so that really set me on the course to look for that sort of thing in life and to try to get out of the rat race but I wasn't able to actually do it because I thought you had to have all this money instead of ending. When I was twenty two that's what I found bigger pockets in. That's what let me know like Hey I can actually do this. I'm capable this without being rich. So I don't know if you guys know this but our producer let me on a little secret that you guys actually have something in common with recording bigger pockets, podcast episodes. So Aaron your life or your fiance actually surprised you correct for your birthday. Application for this and Philippa. His wife actually direct message bring your on instagram. argued. What's your episode? Yes I remember they know. Me and me and Brandon's wife share birthday. So. My wife deemed brandon and told him if he could have a thirty minute conversation with me and he says, typically, he doesn't answer those things at all. But it just kind of like his wife had a birthday. I had the same birthday like it just kind of the universe kind of put together and and and it's funny because when he called me I told him I didn't think it was him and remember hang up on him or was about to, but he was like, no, it's me it's brandon and I was like. Really, funny. Like whatever and and you know Muslim But yeah, exactly. Exactly. We know it's really cool that your wife put you on. So shout out to the to the women in in our lives. Together Because we loved. The Youtube video links to kind of get to hear more about you only watches. She won't let me see. She said you can't see. So overseas. Yeah. Yeah Yeah. Okay. So let's get back in to your story. How many units are you at now and you have something under contract? So. We actually closed on the sixteenth of July on three units and that completed the five doors and we've actually got that fully tended to now. Now, just looking to buy the next one. At four clicks, and then I'm doing some driving for dollars tonight and I'm build now kind of Meller list using drugs for dollars right now, what is what is that driving for dollars? Look like for you Aaron what do you do Kinda give us a little bit of that mechanics of that were. Yes. So me and my partner actually partnered on the last deal the three clicks with a good friend of mine. So what made him do we work together to? So basically after work. Tonight. He gets off at seven. I'M GONNA go meet him We have a criteria that we use and then we just go in you know in our neighborhood surrounding counties kind of the area we're looking to invest we drive we look for our criteria and then we get the address of the property do it the hard way but in a google doc than we go home hop on the county tax assessor website put the address in we get the owner skip trace that in. Building a Miller that way. Nice. So tell us a little bit kind of dig into your deals what you do give us a background on yourself. Talk all things real estate in your life and they will move on Yeah. So the I feel that it was the duplex we did that with fha loan on a house hack three and a half percent down in that one actually works out really well, and we also we were not a room to. So we Kinda Double House, Hackett not to about three hundred a month in extra income. So actually live here for free to stay are electric water, and then the second deal that we justed was a three flights that we found off market. So that one's down's been great. We just got that when fully tended it out and so far it's been awesome. I haven't had any trouble or any issues thus far with. Fiance always on board with getting into real estate investing or is this something you had to fully convinced her? Yes. So in the beginning, she was very skeptical when I found bigger pockets I was really eating out, but I was trying to get her to get into it and she's like, no, we'd be in the car driving I'd stick a podcast onto please turn it off I can't can't deal. So then when I got when I got her to listen to a couple of and we can do this and this can totally change our lives in powerful and she she kind Of got into it and she listened to one and she's like, wow, you're right. You know let's do this like I'm with you in an she just jumped on and now she's fully on board with our budget in savings where we're investing our money, she likes to look at deals and she sends me deals Lex talk real estate as well. So it's been really cool at in her onboard board for sure. That is awesome when you finally have that alignment and nearer. Share the same goals now in your both excited and and passionate about real estate I my husband just kind of I mean he always supported me but now like this past winter, he's finally like more interested and we talk about it a lot and Did you really did you really give them a choice or was it more like, Hey, we're doing this. No. there. Oh I bought a property I've got to. 'cause I'm not a good communicator at all. Like. Remind me to do that, but it's a he has his farm. So. Might go better than coming with the brand new Gucci bag or something or. Rather my wife come over the property then Oh, I bought a new Gucci bag or something. That is true. Guy. Goals you guys have put together as a couple. Yeah. So one of our main goals is to be financially independent by thirty, and we look at that as about ten thousand dollars a month in passive cash flow and we need. So the rough moth on that is about five point five dollars a year at two hundred, fifty dollars a month to get us to where we WANNA. Be Marie are now that's our main goal, and then you're just trying to trying to get there really I liked how you guys kind of reverse engineered that. So you knew what dollar amount you wanted a month and then you you broke down, can you kind of explain a little more about that how you figured out exactly what you need to do now to get to that number? Yes. So we kind of looked at where we WANNA be about the time we're thirty. I'm twenty four and she's twenty three. So against six, six years from now whatever about talent thirty? This is where we WANNA be at. So how are we going to get there and then we kind of took a look at our market in our market it's not hard to hit two, hundred, fifty adoring cashflow actually vote all of our properties you more than that. So we kind of took that number on the low end and. Said Okay we'll do this and then you know if we get this many a year from there in this year will be where we want to be, and then we can you know have the option of step away from our jobs. If we want to or to continue working or algorithm, we'll have the option to be out of the rat race. That's really our biggest. Why is you know freedom? We want freedom in what real estate can provide us. That's kind of how we came to the conclusion Aaron. Let me kind. Ask a question off the rails real quick, and this doesn't follow our show notes or anything like that. What does freedom mean to you as a real estate investor? So freedoms to me as a real estate investor is the ability to not have to work for somebody else if I don't want to. You know when I have kids in a family, I want the ability to not have to be on call or go into work or of they have a game or something that I want to do with them a vacation or whatever. It may be I of have the ability to do that. When I WANNA do not have to listen to anybody else just to provide for my family works sixty hours a week and so on and so forth I couldn't agree more me and Ashley both have kids that are young and if you see our in our stories and what we do, we spend a lot of time with our family and you know we might not drive Lamborghinis we might not drive really Nice Tesla's hassle is. Just so slow work. But you know it is really comforting to be able to spend all day all week all month. If I, want to with my son because of real estate now I do have those calls I. Am there is some days where I spend all day on real estate and I don't see my son that whole day but it is a choice and that is an amazing feeling that real estate is giving me where I now have a choice. I can decide I'm not going to see my son all. Day today, but I'm doing this to build for the family or must spend all day with my son and I'm going to pay the plumber to fix that because I just don't feel like it and that's such an amazing choice and feeling to have and Ashley the same way. There's days rice. See here out there grinding on on on a real estate stuff and the other day she was out at the lake with her kids don't want them off jet skis or something so like I love being able. To have that option I think you see that vision and I'm so happy that you're talking about that. Your wife sees that same vision for you guys because that's so so important I think that's great. So I'M GONNA move his son a little bit but I think actually I has a question. Well, I just wanted to add to that I think you guys will be able to relate and I've been thinking a lot about this because I struggle with my why but as having the choice to do different. Things like one word that really comes to mind is being spontaneous like I wanna be able to like, I. Want to be able to say, Hey, kids tomorrow we're going to the cabin or anything like that. That's really what I want to see my life as an it slowly getting there it's definitely a lot better than it was two years ago that sort I like to use a spontaneous so that I can do whatever I want when I want just like she spontaneously brings deals home to her husband. Bought a property measly got something. Great Way to explain it. That's awesome. Yeah. After I had to share because I spent so much time thinking. So. Ashleigh. Let's interview Ashley Aaron helped me and. I love ashes. She's a great co host. All right. So let's move on. Erin. Do you have a deal in mind that we're gonNA talk about a good rookie deal that we can get some nuts and bolts on and really add some value to our listeners so we can do to one that was just closed on July sixteenth. Let's talk about it. Okay. So Chuck, I said I partnered with that one on one of my really good friends We've been friends for a long time we also were together. So he actually found the dill. It's in our hometown, which is about thirty minutes north of where I live now and I, said, I never invest there but he still lives there in his would you look at the market now? Yeah sure. You know he's going through and he finds his property and he says it's me I'm like Whoa. busted the one percent rule in I knew it had good numbers they're asking one, twenty one it was for sale by owner and I could tell it was too bad. One bath three units I knew that each one on the low end for six hundred to seven fifty. So I was like, okay, this work. So we ran the numbers together was Kinda showed him how how run the numbers work? 'cause he's getting really into real estate and bigger pockets himself. so He's like call. Let's see what we can do. So I I called the owner and she was just an elderly lady that had retired living to Florida. She was in her later seventies her husband as she was just getting rid everything they had like twenty five properties. So see this please she said Yeah, you know you can come tomorrow on the towns, Gary so we look at it in it's basically turnkey doesn't need anything talk very surprised. Yeah, and unlike Sought to contract with me and I certainly go shooting the price with her. She was asking one twenty one i. kind of knew that she was done with it and wanted to get out of it. So I was like you know what's what's your bottom dollar and mean emit talk that we wanted to pay ten for so we get her down to one ten and I'm like, okay let's closed still. So we go back to her house we signed the contract didn't have any financing or anything just put under contract found the deal was gonna find the money next. I call my lender one I used on the fha property in Can you me and he's great about got me into like three replaces with pre-approvals. He said Yeah I'll get financed while come to find out that property is actually it's a duplex, a single family house in it's on one parcel. So it doesn't pass conventional financing and they were marketing it as trying to get a USDA long as a four bed two bath house with the in-law sweet and that's how they had. It posted to sell it which I knew wasn't Ryan when I looked at it. But they had like a split door that goes upstairs downstairs and they have like a split door in the middle. So you can open door close it so. Hard or the same meter for that electric separate waters all one meter so monitors like I can't get you financed. He said, you know with covid restrictions things are tight right now they previously probably could've pushed it through but now they're not gonNa do it so. Okay. So he gives me some local banks to call banks get offered a five one arm on it. I really didn't want to take that loan with a fifteen year tradition thirty percent down, which is I was looking at paying twenty percent down with about a four percent rate and they wanted over six. So I was like this is senior work. Not. Not the same anymore. So I call her back and when we were negotiating, I'd mentioned seller financing to her and she said, no, absolutely not won't do it. So I call her back and I'm like here's what I can do. This is what happened. I can buy the property at ninety five thousand. DROP THE PRICE I'll by on the five one arm or we can do seller financing. We'll give you twenty five thousand down and we'll do three percents for fifteen years and she said, let me call you back. I'm not talking about husband causing back later that day in says we'll do the seller financing deal three at. Three percent thing. Neuro. Apart. Her stipulation was I had to pay for the lawyer because she said, she wanted a lawyer, her lawyer to contract thousand. Fine. We were going to do that anyways. Does that cut what would that cost us so many questions that we have now It costed four three fifty for the closing costs at one fifty for the title search. So to wriggle. With, how much? Three fifty, that was. Oh Wow. That's a major contract and everything. Wow. So you know I like this because you didn't go back to the seller and say, Hey, this is what we can do take it or leave it or this is my only option. This is what I got you back to the seller and put the ball in her court and said, Hey, these are some options that we can take I can go the bank route I can go your route and She the tax implications that she and yourself just saved by doing seller financing. Now she gets a check for the next fifteen years. You have fifteen years if you want to figure out about maybe refinancing or doing whatever you WanNa do it opens up so many more doors to do seller financing when you cut out the bank and I think most people, here's a thing I think a lot of people don't do seller financing and Ashley you can tell me if you think differently. I think a lot of people don't do seller financing because they are not educated on the the outcome of how great it is for everyone I think in a seller financing deal everyone wins now three percent I don't know Aaron you. Kinda. You kinda give yourself a little bit more than you but I still think. No. Way Okay okay. Negotiate. Chest what the bank offered me and they said banker said if he said anywhere from three to four, so I was like all the banks at three or four. But what's really good is you don't know this person situation and now you might have just relieved some stress for her by saying you know what I'm GonNa give you this check every single month for the next fifteen years mean that's great. And she wanted to move to Florida. So they were already out the door moving to Florida and they had the property to setting not running it because they couldn't manage it anymore and she was ready to go. She's like coming close now just want to go to Florida and lived the rest of my life and I'm like, yeah, let's get it done. You know that's amazing. That's perfect. What a what a great what a great option to give for every seller there's a buyer, but for every buyer I also think there's a seller you know and if you're if you can just work it out with I, don't remember what episode it was on the Oh gee podcast, but I'll never. Forget I used to be a mover and I was on a moving job listening to this podcast and this gentleman told Brandon Turner was like in every real estate deal, you have to figure out what it is that the seller really wants because it's not always the money. Sometimes it's it's a it's a clear conscience. Sometimes, it's their kids financial education I mean it's always something and it's not always just monetary gain. If you will and I think you might have just given this lady which she needed. She just wanted fifteen years of a check every single month while she's you know, I don't know sipping Martinez. Down in Florida or something. So you know I listen to that that's great. Did you do anything Erin to Kinda prove to her or show her that you were financially stable and could make these payments and that you weren't GonNa just foreclose on the property and. Let it run into Shandong. So not particularly I didn't like show her income or anything. But what I told her, we put twenty five thousand down that kind of made her film, our country, and then if she called me. Right now she called me I'd take your call. If. She texts me and she has a problem on right there. Do not her go on out of the like I don't want to be out of the circle I keeping these. Other Properties to she sold jet twenty, five, her and her husband sold twenty five. They owned a construction to. Pretty wealthy people. But yeah. So I, just make sure that I'm Johnny on the spot for her she's older she doesn't understand things she wanted things done a certain way. I really wanted to send her the payment every month, but she refuses and says, please just deposited in my bank account it's not I'M NOT GONNA do anything to make her think that I'm not the man for the job, and that's not a hard thing to do is to accommodate those little things at all. Yeah. No, and she gave me a great deal. She even let us we close on the sixteenth. She said, don't pay me until September, give you a month to get tenants. Super. Nice people, they're great people. So I do everything on came to make life easy for her. That went a long way to just being honest in always if she called I did not Fisher call off it didn't matter what I was doing took the call and said, Hey, what can I do to make this easy for you? I'll do all the work just let me take bill except when you're on the real estate ricky show right yeah yeah. One. Thai. Pretty important. This is important. I think that is a really great tip just highlighting that you're catering to her needs because it's not that big of an inconvenience to you at all. In too bad. They already sold those twenty five other properties because. You. Guys have anything left. They're like, no, you have any friends with anything. What you're doing with you what Oh that's great. That's key. So key found so many connections just by doing that by talking to people. Aaron. So what happened next day? So we got the property and as soon as we got it the same day it was Turkey it was ready to go. So we spun around and made a listing and put it on facebook ice cozy for most property management applications. So we throw it on facebook in we started high. So we started at seven. Fifty which I knew was top in. So we actually got some kickback off that. You know people thought it was too overpriced. So we didn't get any any applications really. So we went back to the drawing board and said, okay, let's change it up. So he changed each price for each unit because there was some nicer unit in one nicer unit another Nice utilised Nice Unit. So we changed up the pricing in as soon as we did that. Posted back on facebook, it just went off on a county rentals page. So it Scott County Indiana posted on the rentals page and it's a call from there. We have like forty comments, fifty shares, people blowing up all day wanting to see it. I did have trouble with the application process because people didn't want to actually go online and do it so but we got it fully tended to now that kind of weeds out all the real applicants. Tendency don't. Want. A Online. It's not working for me. I'm like, no, it's definitely working for you. You know done it myself. It's working so and other people are submitting their application. Yes, we got some great tenants. In everything's going, we've had some issues we did have to replace a fridge. We had to replace a water heater the other day. A little toilet maintenance but all in all we're doing well. So Aaron Oh Aaron what's still left to? I love if it was just about the refrigerator. I'm sure more horror stories later. Yeah. For sure the guy apartment with he's got some construction background do not. So we did a fifty fifty split on that and he kinda handles the maintenance I handle the taxes accounting finance though. So that's been great for me because I I not a swing a hammer. So for property management, you're doing it yourself you're using cozy what other? Systems, you haven't place it. What are your tenants do when they have that maintenance issue? Are they calling your partner directly? Are they submitting something online? How does that process work? So does for the call or text me him he lives ten minutes away I live thirty to forty minutes. So they call or text or they call or text me, and then from there we figure out. What's the best option to get it fixed? We like to take care of it very timely like on the something kind of stuck with me from the DOJ podcast is quote. I. Don't remember who said it but he said tree every property like you have tree every tenant like you only have one treat every property like you have a hundred and that's kind of how we've been. Just running our business for the most part trying to be on it trying to be the best landlords in town because we won't. We won't that name for ourselves they have all your tenants in place. Now, what are you cash flowing month on the? So from that deal, we both make a thousand or we both make five hundred and ten dollars a month of that deal. Great. Douse Newcastle dollars totally I mean it's it's crazy the price on that Mr Forty seven percent cash on cash return because we both have about thirteen thousand in after everything. So that's really exciting. Congratulations. Thank you. It's interesting. Erin a lot of people talk about Oh. I. Can't find deals in my market or the one hundred dollars. A is just impossible to find right now and and I hear story after story after story of what you're saying I, don't get less than five hundred dollars per door on every single one of my rental properties I'm not GONNA IF I. Don't make five hundred dollars a door. So what you're saying is but you've created that nor by yourself and it all started from the beginning like the way you structure the deal, the partner like the whole bit is very important all the way to now you're getting this cash on cash return you're getting this cash flow. That's really important because you've structured everything you know in that way. So speaking about this deal, can you give some of our listeners a little wisdom on how maybe they should find a deal like this or how to find a deal like this? So I would say set your metrics I set your metrics what you want in been get get that metric every time because the deals are out there don't be Lazy Them because they're out there, you know hit the MLS I'm on a realtor drip dry for dollars craigslist facebook among all the every single day talking to people I work in retail. So somebody comes in I've met contractors met a hard money lender, the other day I'm just talking every. If I get a second to talk to Gino anybody property for sale the, you do anything with property especially if I can see that they're like construction workers or something like that the deals are out there they got to be found so that would be my suggestion. I said, I would hundred percent agree with you because I've actually found a couple of my deals from word of mouth where someone who knew that I invested that approach me with the deals and I gotTA agree off market deal onto fully rehabbed duplexes. So I think the the networking and telling everyone what you have on the back of my business card it says I know rental properties. On the back and I throw them out everyone. You know. Leave a away or if I give them to someone that that it's a right there. So yeah, that's great. Advice for everyone is just tell everyone what you're doing, what you're looking for in what you want, and it will be amazing deals that come to you need. Even if it's not specifically a deal, it could lead to a contractor or a connection you know building your team. So what's the next step for you? Are you looking to partner on more deals do stop by yourself a building a team? What does that look like? Yeah. So actually everything. So this met with a CPA last week to start getting getting that setup got the. Lender who's gray and then met with a couple of contractors. So I haven't done any Renault yet. So I'm really excited about that. I. WanNa. Do a burn on the next still small multifamily burr two to four units in Rehab it actually my department that I use on this last deal, he took a he lock on his property got line of credit. So he got into about forty grand and then I've got cash put back as will. So between the two of us, we're going to kind of step into a deal that way were debating using a hard money lender just to learn the process and then we'll have our money put back if needed. We're trying to really grow the business, get our name out there like I said, well, you got the accountants. So we talked to him about what we needed to do for LLC's and stuff of that nature and kind of got some direction there, and then we got the lawyer we use for the title company as our real estate attorneys will so dominant. Grow in ills and we'd like to close on at least ten doors. This year hopefully could do more, but that's kind of our minimum goal is ten doors I. You're going to get there I can already see it but before we get to our MVP did have a question. In our show notes, we have something about you actually lost your job while funding this deal what can dig into that a little bit. So that was my first deal that me and my fiancee did on the duplex that we live in now so Yeah we searched for six months to find this deal. We found the one that we wanted and we go into into closing. We actually lost our real estate agent to during the process. So thank God our lender was there because he kinda of. Held. Our hands was twenty two. She was twenty one. We didn't know what we were doing and then I was in intern and the company I was working for I was paid but I was intern actually started to kind of go under they laid off twenty five people in the shutdown intern program and they kind of let me know, hey, you got two weeks and it was the last was the week of my closing. So my winner calls me and he's like, Hey, I, know that you're about to lose your job what's going on? You're able to close this low. So by some I'm like I want close this long how come you close it? We gotta do you. Let me know actually there's an Amazon plant right by my house and they hire like a for filaments there in they hire like on the spot. So I went down their job is like I need to accept paychecks. So. But at the same time, fiance got a promotion. So I said, can we put this all in her name? He said, yes, we ran the loan another thirty day closing. He said, let me call the seller and talk to them. So he called the cellar and I guess he works a magic inside like okay it's fine and we push back another thirty days eventually got the loan closed. It was a mess, but we got it done. Yeah. Great Lender right they're willing to do that extra bit to help you. Yeah. He's the best Aaron it's. It's about those relationships for sure. But I want people to see that it's not about giving up. You had plenty of reasons why I lost my job I can't get the deal. You know I I I it's too much money the lender there's always a reason why Not. But you have to push through those things to make it in real estate and I've yet to hear a story of like it was cookie cutter Super, easy I got my property and then I moved on there's always something you have to push through and I think that's what really weeds out. You know real estate investors that are going to make it in the Those that don't and and I love that you said that that you lost your job but you put it in your wife same. You went out and got a job at Amazon I mean you did whatever you had to do to fulfill that lenders requirements and with a little stroke of luck from the lender, but I would go as far as to say that the. Lender saw the hustle and grind and you and wanted this for you. I. Bet that lender doesn't do that for anyone but he saw the drive hustle. The can do will do anything attitude that you had and that's why he pushed for this loan because he it's no skin off his back and that you WanNa buy more properties and he wants to continue that relationship. Know that too. So you know plan on by more. This isn't the first one we're looking thinking about now maybe doing another house. So yeah, I preach him. If anybody says, Hey, I'm buying I'm getting the house or something sago go talk to Ken because he's the man you know he took care me by need anything about I call him today and he'd have me a pre approval in the next hour. So he's it's hustle in that grind though because I know lenders that are like, no, sorry, you don't meet the criteria and I'm like. Okay. Great. But can you give me an option of how I can I mean you know th those are the difference between finding good lenders and those lenders that don't care and they're just going to be like, Oh, well, I can close one hundred these. So that relationship that you have with the lender I think is great. Let's move on I'm assuming I might know who you're MVP is but I don't know but it's time for this part of the show where we learn about a key player on your team, an agent, a lender, a handyman whatever you want to do it. We call this segment of the show, the and MVP. Let's hear from today's show sponsor real estate investing has the potential to be many things it could be rewarding delivering long-term growth and cash flow. It could also be time consuming managing tenants down payments property managers. The list goes on ultimately though it could be easier or at least that's what the team at fundraise believes see fundraisers and investment platform designed to make real estate investing simpler smarter an easier with investments in more than three hundred properties collectively worth more. Than four point, nine, billion dollars fundraiser is revolutionizing the way you invest in real estate giving you the opportunity to own a professionally managed portfolio of high quality private real estate whether you're new to investing or have been investing in real estate for decades. fundraise has a portfolio that meets your goals and with easy to use website and mobile APP. You can track your performance and watch as properties across the country are being acquired, improved, and operated via dynamic asset updates. Giving, you all the benefits of owning real estate without the hassle of managing it. So if you're ready to unlock a new level of real estate diversification, join their community of over one hundred and thirty thousand investors by visiting fund rise dot com Ford slash bigger pockets that's F. U. N. D. R. I. E. DOT COM slash bigger pockets to have your first three months of advisory fees waived again, that's fundraise dot com forward slash bigger pockets. Aren't who is the MVP for you? So I gotTA give a shout out to Brandon Turner, 'cause I've found him. It kicked me right over the edge to let me know where to go when I found BP Brandon Turner in the podcast. But the MVP so far has been mined. Lender can errands that republic mortgage. So he really he he carried me through it. You know there was some struggles in like we talked about he was there in. That's been important to me, but I don't really have like a mentor or anything. There's a guy in my market that I met at a meet up who actually linked to me with the CPA and he let me come look at his flip and he's kind of outside. Three four steps ahead. Emmy. So it's cool to see him I talked to him probably once every other month. so He's been been really really cool, and then of course, my fiancee, she's the bomb dot com and then your mother family my mom's gray everyone supportive. So yeah, say all that together it's a team. With the lender, what would be your advice for everyone as to how to find a lender like that? Should they interview talk to lenders or just? So happened that he worked out did you do anything specific? With him. So he actually was presented to me from the agent that we worked with the ended up, not working out for us, but I just stuck with him how he was better than her responding and talking in getting things done for us. But I would say you know if you're talking to your lender willing to help you when you call or they're not willing to answer your phone weekends or they're not willing to go that extra step that you need to find a new lender. If someone tells, you know, go call another one I called thirty banks when I was trying to buy this other property before I got seller financing. Somebody will do you'll find somebody that'll give you some terms you lied eventually yeah whether that's the bank or the seller or money guy. Does persistence. It's persistence. Don't give up I think sometimes when people are starting out, they forget that everyone's started somewhere and everyone had that first lender believe in them to do that I deal. Right. So we all started with one property, and before that we we use the lender or we had to find financing somehow I rarely know anyone that has you know. Two hundred thousand dollars in cash to go buy a property you know. So you it's about building that relationship a hundred percent. So I agree I mean that's a great MVP. That's awesome. Let's move on now to the rookie request line you can reach US anytime at one, eight, five rookie leave us a voicemail and we might use it on the next show. All Right Aaron are you ready? emerged. Tyler at a MUFFIN TECHNI- I've calling the ADS. Explain, mechanics. Selah financing, from, start to finish. By find a decent. Market deal. Holiday. Toes go out. Financing. So I got to ask the seller if they're willing to do it, and then you gotTa negotiate the terms with them. There's no agent or liaison between you two. So it's Kinda disgusting head to head with them and seeing what they're willing to do what they're willing to bend on in what you're willing to bend on. But after that, you know you said a agreed amount of terms and then. For me I I don't think you have to use a lawyer, not hundred percent share on that, but I wanted to just to be safe in my contract. So I called a lawyer who also worked with a title company and I think it depends on your state if you use a lender or title company, but he does both. So I called him and I'm like, Hey, this is what I want. To do can you do for me and he's like, yeah, that's no problem Gimme a couple of days I'll throw the contract up because me will sign it and we'll go everything with both parties and we'll do the title search for you. I never done it before. So I kind of just told him. I. Was like, Hey, I don't really know how this works I. Hope you're GonNa, tell me so. And then he he walked through everything with me. It was so simple. I. Expected it to be kind of difficult like I said, it costs three hundred fifty bucks for him to draw the contract in. He went over with both parties. We spend about thirty minutes talking a major Rodney was fine with everything had any questions I asked him and he answered them earn that was really it wasn't a lot it. Yeah, I've done a couple seller financing to and it's really just drawing up the note and having the terms in the air and the payment plan I mean, it's really not I mean definitely not as intricate as getting a mortgage from the. So, much easier than getting a mortgage I. Know you're. Everything. And most attorneys are able to put this together for you fairly cheaply and easily to, and sometimes you might even run into the situation where the seller's attorney might go ahead and do that, and the seller is paying for it to. Okay. Let's move on to our random questions Flea Bay. Do you want to take the first question? Sure, absolutely Aaron. So this part, we like to ask some real estate related questions, kind of get to know you a little bit better. Can you tell us what your let's say, what are your two or three? It can be an APP it can be your phone and excel sheet. What are the top three things of technology that you use or real estate to help you in your investing? So are you. Guys ever used it, but actually found a from the podcast one of the ads and it's great link into my bank accounts. It manages my portfolio is all expenses can upload that into like an income statement balance sheet minute attacks. Preparedness Kit can also put pictures of receipts. It tracks everything from every accounts have to worry about it so I love. You. Still check to check dill's is really quick wage to put him in on your phone. I was using dill machine ferment when driving for dollars but. Now. I'm kind of going into hardware because I did more pay the money, but it was a good APP. It's great. It pulls information from Zillow, right? Yeah. Feel like if there is information on the property on Zillow, pulls it into your automatically when you. Come straight through on onto onto check I like that APP to I use that Taylor it's great I'm on my phone a lot I. my air pods are very important because at work I just have an airport in I. Got I got you guys going all day or the bigger Fox podcast I listen to the business the money it's all of them. So right? Yeah US Ankle Conclave podcast gallon two. So my question for you is, what is one bucket list item you want to cross off but specific to real estate is there's kind of strategy you want to get into with real estate or. something. You WanNa try doing. So, my end goal is to ten, thirty, one exchange, all these smaller properties, they small multi families into larger multifamily deals like twenty to fifty units. I liked Tino, the economies of scale getting under one roof. That's kind of my goal in the end. For sure. Equal pay take the next one. Yeah. For sure. My question would be Aaron if you and we've asked this question before and I and I love asking this question. If, you could have a drink with anybody dead or alive real estate not real estate who would it be? That's a tough one. It's easy brandon. I don't WanNa be cliche it's. Yeah I WANNA be cliche but it's brandon. What would you ask them? Out just ask him you know how he got started in his motivation. Never be a ton of stuff out to sit down and write lists. I would just ask him bobby bombarded with questions. Don't be just fine. He's a very clever guy and he's very good at real estate I. Mean just talking with him I. Think. Time. So yeah, that I struggle with this question like talked about it before foreign, I could think of like People WanNa talk to but to make value of their time and to not waste it. I've hard thinking of what those questions would be. Oh, and that's a like poke what you said. But like the first thing you said was how he got started like if all of us went back, because good listen to all these different podcasts hear that but it's also Coming from him directly face to face and no matter what he says you're gonNA pull value from. That's what I'm saying anything I've listened to the podcast for it. He talks about his story. So I I kind of know it but you know just the little intricate details that you can't get out on the podcast and to some different stuff I mean anything is GonNa be valuable. So yeah, for sure. Okay. Cool for the last question what is one of fear or self doubt that you've overcome or are trying to overcome as a real estate investor? So I would say, my biggest fear is being stuck in the race. I don't want to be stuck in the rat race I want to get out of it as fast as possible. Not hitting my goals is a fear of mine. I don't want to look back and say man, I could've done better or sometimes I worried that I'm not working hard enough tom like I could do this do that or a looking compare myself to look at them. You know I could be there if I would just work harder. So I think that's probably one of my biggest fear that I'm not doing enough and then I'll get stuck in the rat race for sure. I can. I can understand that man I know for me growing up below middle class not WANNA say poor because that's defined differently. But like I always tell the story that I always felt like the water was at my throat right if you're in a pool like I was never drowning but I knew at any slip or any strong wave like I'd have to like really hold my breath mean real estate has dropped that water more to my waist or my knees. So I have a little bit more like, okay. Yeah. Let's get that coffee. Let's go out to dinner. No worries. So I mean yeah I get it man I. I sometimes have that fear myself as well like, oh my gosh. If I make the wrong move like what can happen or so it's really hard to get out of that mindset. I'd love to read a book on how to get over that because I feel like sometimes that holds me back I'll do two or three flips at a time but I won't do like seven or eight because I'm scared I'm going to lose it all type of thing right so like I I'd love to kind of get over that if anybody has a book that would help with that let me know I love to read. For sure. Aaron. Can you tell everyone where they can find out some more information about you? So. Literally Been. Social. Media Guy. So I'm kinda working on that right something to try to build out on instagram or whatever on facebook just Aaron Chapman, and then I'm also on bigger pockets is earned Chavan as well. I'm in their real estate rookie. Gershon. The official group in a bunch of stuff like that. So that'll probably the best place to reach me for sure. But far me it. Can you give us one last advice for I to to be specific to someone who is your age? You know? Maybe they're they're starting their life with their spouse. What is one piece of advice you can give them. To get into that mindset of growing wealth getting out of the rat race. One piece of advice to. I would say look at your life and sit down and say, where do I WANNA be in five years? Where do I want my family to be and then sit down and write those goals out and say okay well now, how can I achieve those goals and then go through a like your brain state all the time a man's like a next most important next step go to that, and then just do it don't make huge make. It. Small breaking down in small chunks and then wipe it out as you go. You know you'll be there before you know it like wow, this is actually working this is happening so and then thinks and then it gets exciting to think about once overwhelming anymore thinking about that big chunk. Can you break it down like you said into those little chunks of becomes exciting as you get closer and closer and and Kinda like chip away at it? Actually, very well, thank you so much Erin for being on the show today, we had a great time and we look forward to senior journey and how you guys girl and hopefully Cova, doesn't cancel your wedding. We. Have into. October. Or summer. Right, I'm happy about that. So yeah, thanks for having me guys. I. Appreciate it. It's been a real honor so Thanks. I'm Ashley at welcome rentals and he's the li-pei at Philippi May R. E. I. Thank You for joining us. We'll see you next week. Over
BTM156: Mortgage Rates How It Really Works (Post COVID-19) with Aaron Chapman
"This is Darriel aaliyah. And you're listening to the before the millions podcast episode one fifty six Cowabunga. Are you ready to be the master architect of Your Life? Are you ready to design your business and invest the needs that create? The lifestyle always dreamt up. Are you ready to learn from entrepreneurs and airs? Who have achieved a certain level of success. Hey this is Derek Location Independent Entrepreneur. And you're listening to the before the millions podcasts. I am Gina Lofton. I an investor. And you're listening to the before. The millions podcast. Hey there my name is. Heather Haven would marketing coach and global entrepreneur. And you are listening to the before the millions podcasts. Hey this is Marcus crispy host of the seven minute mental podcast global entrepreneur and all round Geek. And you are listening to the podcast am MC lobster the cash linenger and you're listening to before the million spot cost you're listening to the before the millions podcast or whether you're looking to invest we're cash flow all built an online business that allows you to be location independent. You come to the right place. Mr Hollywood himself presents the before the millions. Podcast now your host. What is going on people? Welcome back back to another episode of the before the millions podcast and have another fantastic guest for you today. His name is Mr Aaron Chapman. But before that if you having subscribed to this podcast be sure to hit. That subscribe button. And secondly if you haven't yet left a review be sure to head over to to Itunes or your podcast directory and make sure you leave a review for this podcast. Five stars are preferred. So let's get into today's episode because what we're talking about is the state of the market post-seaon nineteen things are kind of opening back. Up outside is being available again in small capacity so we want to talk about the real estate market and we'll talk about mortgage rates. We'll talk about is now a good time mortgage rates right now on average for conventional owner about five five and a half percent so is now a good time to lock in those rates. Are It's GONNA go back down or rates steadily GONNA rise up. All of that will be discussed on today's episode so theoretically speaking I went to go. Get this information directly from the Horse's mouth now. Today's guests mister. Aaron Chatman is a veteran with over twenty years of experience in the finance industry and as a loan originator and a sea of loan originators. I think the industry has over three hundred thousand lenders so just imagine. His company ranks number fourteen as a lender so with that kind of expertise in with his post on the financial markets. I wanted to do a deep dive with him on again. The future of interest rates and mortgages and how real estate investors should think about financing after the corona virus pandemic? So this is a fascinating episode. And we're going to get into here shortly. But if you're not already following me on instagram be sure to head over to before the millions dot com for slash instagram or just over two instagram and typing. My Name Guerrero. The and let's connect. Instagram is my platform of choice. Unlike facebook I can get a message and not see it for two three weeks. Maybe a month Lincoln. I can get a and not see it for a few months but a frequent instagram. A little bit more. Because that's why I post. My current books travels eateries things of that nature. And that's why I've been collecting a lot of the questions that I'm going to answer in an upcoming episode. So if you have any questions pretends to real estate as it pertains to your journey. Financial Freedom. Lifestyle designed being located independent again. Hit me up on instagram. Follow me on instagram. Let's connect let me see if I can help you get you to your goal so my instagram handle is again derail. Alya or if it makes it easier for you you could just head over to before. The millions dot com for slash instagram. So one last thing before we get into the show. Because I want to help you find some money from the type of money that you can find the your couch to the type of money that can maybe cover a car. No I'M GONNA. I sure you had to do that in the tip of the week and then we'll get to the show and figure out how Aaron was able to close over three thousand transactions in the past four years three thousand that's like an average of what like eight hundred transactions a year. That's insane but we're GONNA talk about exactly how Aaron did exactly that raised tip of the week. You know that feeling when you were a kid and you find a dollar on the floor and the playground or you know in the parking lot. I remember the last time this happened to me. And it hasn't happened since it was like when I was like sixteen or seventeen in high school I was walking out of basketball practice and I was walking to my car. Crossing the street. And Lo and behold right there in the dirt next some trees was like a five or ten dollar bill or might even been a twenty dollar bill. Because I remember how excited I got and I was just like. Oh m. g. and happened quite frequently when I was younger but since I've like turned eighteen. I haven't seen a single bill on the floor anywhere. Well that's again free money and I want to see if I can help you find some free money. I mean how about when you find some change in the couch. That's always a joyous time. I personally don't find changing the couch but I do find my own money in my pocket sometimes so anyways here's a way to search quote unquote the couch to see. If you have some change that composite we pay for your next meal or can possibly pay for your next will and the way I want you to do. This was actually recommended to me by one of my mastermind members. So here's what you do you type into your search bar on Google or whatever your search engine is and you type in unclaimed property and then your state so unclaimed property Texas or unclaimed property New York or unclaimed property California. And you go to the property site if you heard of this before you're like yeah yeah already know this but some of you have and basically these sites are set up for the state to help individuals cash in on funds that they're entitled to but for some reason or another they didn't yet receive. So maybe you moved and changed your mailing address but the company that was supposed to give you some money. So let's just say. At and T. Had a crazy because you overpaid your bill. And they sent it to your own address. Little things like that. So those things add up over time and if you go to one of these sites and you put in your name you're going to see all of your unclaimed money for ever now. I put in my name. Unfortunately I didn't have any unkind money for me but I put in some of my family members names and one of my uncles has four hundred dollars coming to him. One of my aunts head to records that came up and she's getting like two hundred and forty dollars back to her. I saw one account on their fourteen grand of unclaimed money. And I'm just like wow again. All you have to do is go to unclaimed property and your city name put in your individual name in the search field and see if you have any unclaimed money for instance state of Louisiana in itself. The Treasury's Office is holding over. Eight hundred seventy nine million dollars in unclaimed funds or if you don't have any unclaimed funds I'm pretty sure that somebody who's arms length away has unclaimed funds and you'd be making their day if they see that they're about to get forty dollars into their bank account or forty dollar check in the mail so again quick tip to find some couch money and maybe even help you through these uncertain times. Hope you enjoyed it. Let's get to the show and now your feature presentation. I come from a background of cattle ranching oilfield in Wyoming white off the cattle ranch and from there to earning heavy equipment than identity to work in the minds in northern New Mexico with my dad and he'd been doing that all his life and are at least a good chunk of his life except for the time cattle ranching and I that opportunity phenomenal to me to be able to be underground with my op. Heard about his experiences and the people who work with and I was a kid and so it was a great job. Great Opportu my favorite job in the world. But they had to shut down the project. They can only go so far and I got laid off so I had to go look for work and every place I went I got turned down because I was too obvious. Overqualified for every job. I could find Every opening available and I found myself one day at a wife and infant son. We were completely broke. I was applying for a ten dollar an hour truck driving job with a landscape materials company. I got turned down again overqualified. I drove away from their literally shedding tears. I was I was a broken man. I was only twenty three years old but I was. I had a great resume. Could not understand why couldn't get a job and as I drove away. I had a coupon for diapers for my son because we were added diapers at the House. And as I am driving up to the grocery store actually leaving the the facility. My Gas like comes on my truck. So I drive over to the store where I need to go. There's a gas station outside their pulled up. Swipe my debit cards. I have a credit card and I didn't cash and I got a decline. I rummaged through my vehicle to find some change. I started walking parking lot for two hours when I was done finding enough. Change to get two gallons of gas so I can make it home. I went in to get the corresponding diapers with that coupon on my way out. I face to face with a guy used to do When I was digging swimming pools years before he used to run the office and he asked me how things were. I told them what was going on. Get a gift certificate for Red Lobster took Nemo to dinner the next night and introduced to this industry giving you the business card for a guy who ran a broker shop. Introduce me start as telemarketer twenty three years ago and I've completely my guts out for twenty three years to get the coin format today. Walk me through the transition or not. Think that's really fascinating. So he started as a telemarketer. How did you climbed the ranks like Position Position Walk me through that L. Sizes when I walked in their head to cut off my hair shave and clean up. I come from a rough neck backgrounds. You Walk in there. My Mom had bought me some clothes so I could so I can look like a business guy is a very relaxed atmosphere and as I was learning how to do the telemarketing I developed. Some some leads and I was able to convince my branch manager to allow me to work some believes so he said okay. If you WANNA work this I'll put you with one of these other loan originators and he can teach you how to do loans. But YOU'RE GONNA share split. The Commission on your first ten deals it was really kind of hammer and chisel process trying to learn and adapt to it. But I I started recognizing different personalities within the brokerage. And there's a guy over there in ED in. That guy could get away with saying anything anybody he'd get away with whatever you. WanNa do still be fairly success for in back in those days. Successful was closing three or four transactions a month that was a successful person in the industry. Your closing eight nine ten. That was huge. Well mirroring myself trying to figure out who I was to be common. This and having the balls to just be that person as I developed understanding of the business just getting out there and really communicating to everybody and finding my niche eventually stumbling into the real estate investor from a loan originator. Just doing any loan. I can get to the point of up something. I'm no longer focusing on people. Buying houses I'm older folks. You know working with realtors. I really couldn't stand it. I no longer folks on working with with home buyers to buy know their first home of their dream home because what they were. Purchasing was irrational. Most Times they wanted something couldn't afford a push you to give them that because they're rising American but the real estate investor made sense to me so I started develop my understanding of the real estate investor and real estate financing. Why they were buying those homes how to do the cash or how to find the light right loan programs that help them and in two thousand three ice when fulltime chasing roasted investors and I started ignoring all the other things and then the crash happen right. The people are sending my business to business. Got Out of the business in August. Eight to two thousand eight on a Harley heading out of town and I've gotten a motorcycle wreck the put me in a wheelchair and completely changed my life The dynamic of everything at that point So I came back to an industry that was obliterated. Learn how to walk again at a literally. Retrain my brain. 'cause my memory my memory. It only lasts three minutes and a return everything but it was one of the best things I could do. Because now I had to learn all this stuff all over again and it actually became the best thing that ever happened to me and I really really dug deep into the real estate investors when they're coming into Arizona to bind that real cheap real estate because of the crash and at that point I just had to really mold myself into becoming The trusted adviser to those investors from a financial perspective. There's an old saying says says good judgment comes from experience and experience comes for bad judgment. I am blessed to do Between seven eight hundred transactions a year this year will probably get about thousand twelve hundred and I get to see a lot of judgment making skills at work. I can see a lot of people deciding what they're gonNA do their business and I get to see where they fail where they succeed and because of that I can advise the investors I work with based upon what I see other people do and were their successes so that way they can they can avoid the bad judgment needed to build their business and then I realized that and I start becoming very very very interested in the of the real estate investors business. My business went through the roof. I went from a couple of hundred transactions year like I said now over seven hundred in fact we. This month will have closed over four hundred by the end of this month. So far this year ascribable baron. That's simply amazing. You know taking it back when you didn't have the best memory. You're losing your cool. Remember things past three minutes. You know one of my favorite exercise. My favorite memory exercises is the mind Alice. I'm curious as to what types of exercises. What was your favorite at the time to really help you sharpen sharpen. Your memory was carrying around notepad. I'd write down everything that was going on. I had some very very patient where people working with me. My mom is still a realtor. She has a real to then should send me a lot of business. There's another guy here. Kobe corn and Caroline. She would similar business they would call up and give me a client to call and then five minutes later calling me back say. Did you write that down? I'd say right? What down and they said. Grab your pad and write it down and so it really boiled down to people who cared enough about me and my family and my future to help hold my hand and I kind mostly thinking about it because the other people took care of me to make this possible. Of course I had to get off my ass and make it work to know because they weren't GonNa drag me right. They were going to prompt me and I started to do the work. We just writing it down in rereading it reading reminding myself I need to do. It's like that movie memento by entering mind myself now as a kept after that eventually I didn't need to know pat anymore by down to a habit of carrying one and keeping notes on what I needed to do and eventually they'll be able to build a business record. Hire other people to do these things. So now my might. My whole one is to make my investor successful in to have so much business. I have opportunity for others. So Samantha scheduled us Her whole jobs read my emails schedule. My calls and make sure my calendar school and it goes if I start touching it all screw it up so I You know it the the blessings of come from my inability to do certain things or my ability to hand off certain things to bless other people's lives people often say you know you should. You should get better your weaknesses and oftentimes find a successful people. Focus on their strengths and weaknesses. We consistent have other people focus on at any time. Do you wake up. And why four. Thirty in the reason we can before three sometimes. It's earlier than that what I need do. There's been commonly lately two. Am To thirties. From their the reason I wake up at least a four thirty is because I started morning routine. I dropped to my knees every morning. In prayer to offer grab a prayer of gratitude to God for the people that are in my life the clients that I have every single one of them I get so many new things to be grateful for every single day the opportunity to be on this show And the people get to work with my family all these things right so I get to. I start with that and we go to start my coffee up and I go right to my chair. I have a specific choice. Sit in and I start reading right now. I'm in Second Samuel Reading about you. Know the life of David in the Old Testament. I've been reading all these books. The couple with the Old Testament to understand it better. A lot of people get into the whole separation of Religion River. In in my opinion is not religion is the history of us is the history of where we came from and what happens to people who choose the wrong route and what happens to people who choose the correct route and you can decide for yourself. It's just a it's just documented understanding of humans. Right then from there. I studying what I need to day. I'm also an author got four books out. I've got three more written in with my editor. I've got I'm I'M HELL-BENT ON TEEN BOOKS TO GO OUT by the by the end of within five years and they're not big books. I got four of them here. They're just they're little. They're only thirty pages or more. And the only reason I write thirty pages or more because I think if I try to go for two hundred one hundred pages. The message gets lost with all the filler. I focused on the specifics of that particular item and then the And then I get out of it right and they go on to the next subject and so I spent some time doing that. Then I get a workout in. I start my day absolutely exceptional. You're currently ranked fourteen in an industry with over. Three hundred thousand loan originates and you. You mentioned that you were set so probably close about one thousand. That's four hundred laws this year twenty eighteen. You call seven hundred units in twenty seven. Can you call six hundred seventy units? How in the World Aaron how in the World? This is the kid. Grow Up to this entrepreneur and this entrepreneur a marketing funnel literally able to close. This month deals hottest. That happen it's It's Kinda hard to wrap my head around when people ask me to define it and boil down to is you know had to restart my my business a couple of times and up until November. First two thousand fifteen. I couldn't get past a hundred and some and the November I. I had a partnership. Go Bad we. I actually merged with a with a competitor. We're doing awesome. He decides we're done and he thinks the plug and to start over at zero what I had was you know. Three Staff Members. We sat down. So what are we? GonNa do with that. Next phone call comes in and we decided that point. We had all this knowledge that we had had from what we developed at the up to that point. How do our jobs? But we didn't have as a really really awesome system because I was always combating with my partner and how he wanted it done versus how I wanted done and I stumbled into what really helped most was finally starting to start reading right at a buddy of mine share with me. The book the goal by Ally Rat. I've ever heard of that But it talks about manufacturing and what I did I took lessons. I learned from that and start applying it to the the the now business basically starting over with the next phone call Samir. My little staff sat down and talk about what we do at this next client and we started enacting a process of comic going aaa get a Burrito built. You've got a different person doing different stages seeking efficiency in everything because the phone was gonNA ring. I still had a reputation and it did. It rang within ten minutes and capturing and because of our focus on what we can do for that person on the other side of the phone. They are the most important when I got that. Figured out at this point the partnership split up you had already niche down to specifically focusing on Investors yes. I'd niche that outbreak in two thousand. And three right but in he was a competitor of mine in that Niche. There's only like five people in the United States. Do what I do you know. And we're all none of us are really competitors. Brunell competitors right as you're going to deal with the different loan original based on who you're dealing with weight you're seeing is what you get right here with me right. I'm always got the damn hat you know not. Very many people are walking around with a two and a half beard right. There's there's GonNa be differences not at not all those Voelkel as I am. You know they're not going to say the shit that's GONNA come out of their mind. How's it going to matter? There's right so with all that I knew I had a certain following and I was really really hell bent on creating a cult following which is what we've been successful at doing but all boil down to. What was the experience of that next person and then I started talking to them and asking each one of those clients. When the deal was done what do you think we can incorporate in our process to make us better what we do? I started doing that for a couple of years and I started getting a lot of feedback and so I talked to my teams like how to incorporate this. What are we GONNA do? What are we going to change? And we have slowly built from me in three team members. I've lost some team members and gain some more. I'm at twenty one employees right now this part of my team. The only folks on the deals that come through me. I've got processors processing assistance underwriters. Funders closures all my team instead of me talking to different departments and having to convince a different manager to help me out and prioritize my stuff. They all work with meat. It's freaking awesome. No so it really just bow down to deciding what it was that those individuals that work with us need to have the more. We focused on them. The more our business just grew and It's not about it and we and we actually really shook off us. We didn't care about us so much like I ask a lot of people who made the most money during the gold rush is the guy who sold the picks and shovels neither people digging for gold. There's a lot of people need a lot of money. Digging for Gold Toe supervised into tools. So what I explained to them like. I'm selling picks and shovels but the difference between me and those guys back there is. I know where the gold is. How to extract the ground? I WanNa give you all the best information because not because I've done all a bit because all the people who are coming through my shop all the time and if I can help you to find where it's at get it all out of the ground you're going to need more than picks and shovels you're gonNA TRUCKS. You're going to need heavy equipment. Needed a smelter mill. You'RE GONNA meet a damn train to haul that if I did my job. Who could come into for all that? That's going to bite fixing shovels from Megan the equipment so their success is my success and if they fail. I start to fail in bottom line. I don't participate failure. I will not set people who's going to take from them. I've seen a lot of people out there willing to take from another person for their own success in time. I've seen they end up falling anyway. So why not just help them? You end up helping yourselves and you never end up having been a situation where you're defending yourself. I'll let the airlines beautiful analogy. I totally resonated with that. When you think was the cost of what you call it. A cult like following. What do you think was the cause of that? Was THAT WAS. A loyalty was compassion. I really I'm guessing if I had to really yes. Something has to do with the fact that I care enough cares much for those more more for those people on the other end of the phone. Then they do for me. There's that old saying and it's very cliche. Nobody cares and we cares what you know until they know what you that you care something to that effect remember executive members on a mug somewhere coffee mug but it. It really is true if you don't give a damn about them they don't care what's going on your head secondly is I get. I'm present in a lot of places you know. We're talking before the show started about my travel. I speak a lot publicly When it comes to real estate investment gatherings and and seminars or whether it be events that they're having and when when before people had seen me very much only got on the Internet in the last year. I've really tried to stay. Keep my keep my physical presence awaiting for the public. I want people to decide who I am by. My appearance will then would end up happening. Is I go to these events and people were being told they've got this real estate investment finance expert coming in to talk about the markets. You talk about finance talk about inflation to talk about how the inflation nullifies compound interest that a lot of information to give and so when they're they know that person's coming and I never give a head shot I used to never. Let's put it this way and people like. Why don't you give us a headshot we need to give like? I don't want people to make an assumption what they're going to get out of the gate so when people show up and they get that introduction to get my background and are sitting that audience and then I come up on the stage looking like me of jeans pair of boots that black dickey shirt on in a steel chainsaw hat with a braided beard. Like one the hell. Is that Wisey here. That's what I'm going for. They have to ask the question before the here. The answer right so the question comes up saying what the Hell is that. They got a now. Listen to find out what the hell that is so I think that the cut like falling really start even a develop even more when I had the opportunity to have these these These chances to speak in front of people and that was not easy to do. I had to develop enough knowledge to be credible and once I started becoming credible enough to get in front of people. I've been standing on stages since two thousand twelve probably because of that and intermittent till now it's quite quite a bit quite a bit more often and because of that People were really intrigued to the fact that how is it? You know all that you look like you. And it's such a dynamic shift of what was going. On in their brain they gravitate towards those conversations with me more so than the guys who look like everybody else that blended in with their Polos or their or their their sport coats and all that crap. Now God bless you for wearing them. You're not gonNA catch me dead in effect. They're not even allowed to bury me in that crap. Put me in my camoes. I WanNa be a going onto a great hunting grounds of the of the next life. But I'm glad people wear that stuff so that way they can. They can go be there. And I can differentiate myself I love. I love this isn't a fascinating conversation already. I WANNA get Some learning and teaching our audience. Today you know you. And I share a favorite one of our favorite movies. The big short his snub talk about the Highlights really the the real estate bubble back in two thousand seven. Two thousand eight and it was entertaining but also educational yours lots of educational which I really enjoy again. Big Short definitely go. Haven't seen that movie out while Orienteer- right now on but I want to talk about some of the things talk be Detroit and see if we can break down on you some of the things that are on a lending industry but I can't we some background on some of the Terminology. Office on a ask you what is mortgage back security and what drives interest rates. So that right there. The big short is one of the main tools. I used to teach people what that is. So when you when you watch big short there's GonNa be a character under from Solomon Brothers back in the seventies luminary. You're gonNA see a scene where he's standing in a conference room with about four people and one of the people sitting at the at the end of that conference room that he's presenting to. He's got one of those overhead projectors winnowed seventies right and he's talking about this thing the mortgage backed security what they're doing is they're taking their convincing a pension fund manager who is who is presenting to to take twenty plus million dollars from the pension. I think end big twenty five million total. If I remember correctly I didn't go back. Look my numbers But they were going to invest that money into this pool of funds and then what they were going to do is take those full of funds and make it available to the banking industry. Take from to lend out. And they're that security. If the more money goes into that pool it's supply demanding right the rates go down the less money in that cool. People sell out of it and go to stocks or precious metals or other commodities or currencies to wherever they invest their capital. As it shrinks the rates go up supply goes down cost. Goes up right so what he would figure it out is waiting. There's all these out there that take depositors capital and they will have a loan officer in the bank president and they will learn many out to to the local people and they will charge twelve percent fourteen eighteen twenty percent at some points and they will keep a portion of that. And they'll pay their depositors like this like their CD owners like eight percent will pay the people checking accounts like two or three. That was back when you're making a decent return but also inflation was through the roof as when you think about it really wasn't a bounce themselves out so what he decided was like. Wait a minute if we can get you know. Eighteen twenty percent when you take all this investment capital from pension funds and people's 401K's in IRA's and we'll pile into one place will ended out as the money comes back. We'll keep a piece. The Pension Fund keep appeased the end user. Who put the money into the pension? They get a piece so there's billions of dollars being made overnight. These big pools what happened. Was You get into a scene? Where Margot Robbie sitting in a bubble bath and she saying you got to a point where people you know there was a there was a time in this nation. We were content with what we had. He wore out there. You know by living in a house for two years now. Oh I now I go by the next biggest thing. I would be the king dangling on my street now the biggest baddest house in the fastest free car right people were happy with what they had. I mean there's a lot of folks I knew that. They bought their houses in the sixties and they stayed in the same house until he died right. That was part of the human the American culture at one point. So what happened was they're running out of people to lend to so they had to get a little bit more creative. Then you get to the late. Nineties started doing the zero down stuff you start doing. The income qualified stuff the The no income no asset the real crazy kind of loans and then used you see them putting our whole industry at risk our entire actually as the global risk because people were giving money to borrow that couldn't afford to pay it back and they're being told it was fine you know so there was a lot of We got into an earlier. Talking about people are taking advantage of other people that was people taking advantage of another person in their ignorance of what they could afford what they couldn't afford now. We had the crash. Now we have a lot more of a responsible lending process going on the licensing. We have to go through. That's miserable at twenty. I think. Twenty four twenty five licenses. The renewables is sixty hours a year. It sucks but it's necessary to ensure that the best people are still in the industry ensuring that people are not being taken advantage of now. I can't say that that's happening. There's always human human nature at play but understanding the background. The mortgage backed security. What drives interest rates is an absolute necessity too often? People think the Fed lowering the rate is GonNa Change. It doesn't all the Fed. Lowering of the interest rate is as illustrating our current economy. If they're lowering the rates is because they're trying to spur some happenings within the economy. Trying to get things moving right. They've lowered down to zero. That shows how badly they want things to move. And that's an overnight rate between banks. The other thing is people wash tenure treasures. Go all the treasury's well. It's a ten year note right to ten year bond and that is the treasury goes to the government. They get to use that for what they're doing. They're paying interest. Whoever put the money in there will one big indicator that is not tied to mortgages most of our loans? Today are thirty year fixed. That's ten year. How is having money coming from tenure instrument even remotely related to a thirty or instrument so got go towards being done? I tell a lot of people go to a site called Mortgage News daily Dot Com Slash M. B. S. mortgage backed security. And when you get there there is In the center of the screen there's GonNa be a graph that is the mortgage backed securities trading. Now you're real estate investor you want to click on in in the middle of the screen. They'RE GONNA see a thirty year U. N. B. S. as universal mortgage backed security. Then he's GonNa show a number probably three point five. That's the coupon there's various different coupon starts. I believe two point five. Three three point five four four point five five five point five and six. Those are the different ranges. Were really dealing with for an investor in the in parentheses. Right next to those numbers you can see change coupon. Click on that. Go to four point. Oh that's GonNa mainly tell you about what's going on in the pool where we get money to for real estate investors as it trades up in the green and you're going to see green bars and bread bars at green bars is well. Each bar represents a day of trading. If it's a green on music traded up money went into it. If it's a redwood money traded down it went out as it goes up the pool start to swell the rates will go down as it goes. Down TO POST-PARTISAN START to decline. The rates will go up now that is actually cost per incremental cost per rate. If you see a swing. Let's say let's say today you're going to see on that U. N. B. S. four point. Oh somewhere in the range about one. Oh six point five. One hundred is par. Sixes is referencing yield. Now we're not GONNA get into the real depths of that. There's a lot of explanation there. So let's just say it's one. Oh six point five and you called me and I quoted you a certain interest rate right and then a week later so it's quite locker rate. It went from one zero six point five. Oh two one. Oh six point zero. That means you're going to pay about a half a percent because you got a fifty basis point or point five point swing in the pricing or the market from the time that we first talked you get you could get the exact same rate but now the cost went up a half a percent. The other way around in the cost got better. So it's it's it's a process to understand it's taken me years to get it in his little nuances. We don't all get because there's been a major thing that's happened with the servicing side of the business. That's blown things up right now. People are GonNa see points where they never saw points before. Because nobody's paying the service these long anymore than buying the servicing they're demanding the servicing in. You Pay Them. So that's changed the dynamic. I don't know we can get into the depth here but understand the mortgage backed security. It's somebody's pension. Somebody's retirement is could be part of your your 401k as if you got a mutual fund. I'm pretty sure you've got money in there. So whatever they're charging and getting back is paying for somebody else's future one benefit to it. Is we live in an inflationary environment correct. What is today's rate of inflation? So the Fed will say it's about one to one and a half one and a half to two percent. They're basing it off of and we got the new the new PC coming out. I think today the personal consumption expenditures index while they measure inflation. But they're only measuring things. You go to a place. Called the chaptered index dot com or shadow stats dot com. They will show. Were probably closer percent inflation seven to ten your northern California's thirteen if you're in New York is like twelve. You know so. Inflation is based upon the cost of living. Where you where you're at right. We'll if the average Americans bein more stuff than what the Fed measures and those things are moving pretty regular. I mean look at the toilet paper index right now. You know you're going to find it. You're going to pay ten times more than it used to be. So inflation is through the roof on paper at least APP particular kind of paper so considering these things at certain products more and more every year these dollars losing its buying power every year so if you borrowed say eighty thousand today to buy a hundred thousand dollar property finance eighty percent of it many times people think man. I'm paying paying interest on that for thirty years. I'm getting my butt kicked by compound interest. Which is the eighth wonder of the world according to Einstein what things Einstein didn't talk about was having that involved with a thirty year fixed instrument and asset. Which is a home with one paying your Castro in to you get paid back over a thirty year period with a declining instrument like the dollar so if the dollar lost only say seven percent per year because you're keeping yourself wired tight not spending money indiscriminately. You're being conscious about where you spend it when we calculate every time you're that dollar that the money leaves your hand to make a payment for thirty years. Three hundred sixty payments longer paying him three or eighty thousand not paying the seventy thousand dollars in interest. If you calculate the true value of the dollar as equated to the the eighty thousand dollars a day you borrowed it. You're paying back sixty two thousand in change. Based upon a seven percent inflation rate so I tell everybody leverage high leverage. Long payoff slow. The greatest asset to your business is a thirty year fixed. Conventional lump how long it takes you. Give back the money a love that well and you hit us a whole lack. I know a lot of our listeners. Suppressing rewind by thirty seconds over and over and over again because it was a last night nibbles all. Good intro on. I think that you know to kind of pro ball on that. In terms of how what the listeners now looking at on certain level in a lot of investors trying to figure out over the next few quarters is what should they be thinking about finance where looking at Mitch is right now. What should way should be is. What is your outlook? What do you think investors should be doing right hander? Spirit during this period. Several things number one store getting your morning right. We talked about how I start my day. If you're starting your day like that you're not doing something with yourself. You better start figuring it out if you had a commute before that you don't have any more so now you sleep in. I would change that habit right away. We are forming habits right now. The habits of humans have changed completely. You know they say of takes. Eighteen to from eighteen two hundred days to form a new habit that sixty six of consists sixty six days of consistency to have integrated towards where? It's just an automatic happening in your life. We are creatures of habit we were. We're going to be the slaves to those habits so formed inhabits and become their sleep start starting with the morning routine. Get your mind right. The others did a baseline of what deal has to work. It doesn't matter what the interest rates are a truly doesn't the deal either. Works or it doesn't I was doing loans back for people in the interest rates. Were nine percent and the deal work. I'm just doing loans for people in the interest rates are at their all time lowest of four percent for twenty percent down and the deal still worked it again either worked for the benefit of interest of the real estate investment world. If the rates are going up we get to write things off on her taxes to offset it. I have a whole other story. Where a Guy Pot two houses? I'll just tell the damn story. He got wounded contract onto brand new build homes of Memphis Tennessee. Same floor plan same price. Same potential rents same street. The only difference was one had the door facing on one side of of the garage had the other and then the other one was just about done being built the other had yet to break ground so he was in contract on a law when he finished on propping number one it was December of two thousand seventeen. He had a four point. Seven five percent interest rate was very very happy. Cash flow was was working. Well he closed now. We have jerome. Powell is the new chairman of the Fed. He started quantitative tightening. No quantitative easing. What is the Fed dumping tons of money in the mortgage backed securities keeping the rate down? Quantitative tightening was the Fed stopping putting money in there right when they did that by may the next year the interest rates went from four point. Seven five to five point seven five. A full percentage rate different when I quoted him on his new rate is that I think I'm going to cancel the second deal. Acquire you cancelling. Who's I'm losing six hundred dollars a year? That was his words. Like how you losing six hundred like the differences payment is forty nine dollars and ninety seven cents per month averaging out the fifty bucks a month. That's six hundred dollars a year. Okay how is it? You're losing it though? 'cause I'm putting out the same amount of money out of my pocket. I did on property. Number one number two is paying six hundred less. So it's not worth it to me like. Well you just finished your taxes. Right was yes to contact your. Cpa and ask him a couple of questions for me said okay. What's that I said? So before he make the decision ask him. What is the difference? You will pay in additional income property one versus property to then which is six hundred dollars year right. Then ask him. What is the difference? The tax deduction you get on property to versus property one because as higher interesting charge and then get back to me and then remember you're even paying me interest your tentative right tenants paying the interest. You're the cash flow and you get the right us. He comes back to me so go ahead and closed. I said why are we closing 'cause when you run the difference in those two scenarios based upon my taxable income. This last year goes no the differences no longer forty nine dollars and ninety seven cents. It's three dollars and fifty five cents per month. Let's close the deals. The the the lesson here is it doesn't matter what the interest rates are. We have we live. We are the most tax favorite asset class on the planet. You get to make money because somebody's paying off right. You're automatically growing your twenty percent to one hundred percent. There's somebody else's paying down the eighty percent. That's that right there if you run the math on that and that's a thirteen point. Three three percent gain every year on the twenty percent. That right there kicks everything else has asked before any other cash flow right casual. We get one. We get to write the tax deductions. Then we get the the Inflation like we just talk about just pounding compound interest death in your in your behalf. We that growth you never even paying back the principal when you consider all the things potential growth into in the value of the home. We know that that's that's happening. All season return is hundreds of percent return too often. People get caught up in cash on cash. Return what's my cash will. Those are all necessary to quote the big short necessary on top of the Sunday. That's not the ice cream that's not the whip cream that's not the nuts and that's not that's not the sprinkles that's just the Cherry. The cash flow is the Cherry. Everything else it just talked about is the hundreds of percents that is the Sunday. That's where you focus your time at. That's where you focus energy. That's where you focus your your your investment thought process in pray the Cherry just a big big big sweet one. When it's all done mentioned the call that you had a few trips council enriching some Senate senators just around the ideas of the leading industry since May report which shares on their last year. I was invited as delegation to go in and speak Several and in the conversation. The one I wanted to really bring up is there's a big worry about housing right lower income housing they. They want to allocate more budget from the tax dollars to build a towards lower income housing nor trying to explain to him. You just don't realize there's billions of dollars floating around in the wings in the forms of private capital in the real estate investor so when they come into a neighborhood and they see the possibility picking up one property tearing it apart. Rehabbing it making it a very very nice home for the renter putting somebody in there right going through the process of evaluation. Making sure they're getting a good solid tenant in there then they do the house next door and the one on the other side and they slowly work their way through a neighborhood bring up the value. The neighborhood right. You're providing housing for people that are that are not able to afford to purchase it. This time you're also improving the quality of people within the neighborhood right getting the crime out because they're not the ones paying rent so you're slowly improving these neighborhoods. And then if we work out some sort of pass for the person occupying that structure can purchase that home from them in the form of a refinance. Because we've created some sort of instrument that gives that person the ability to kind of like a like a lease option used or could but haven't more legal teeth with Fannie and Freddie and all the government entities across the country in states and municipalities. That could change the landscape of but completely if they would just think about it a little bit deeper and stop looking at the real estate investors villain who's trying to take advantage people. It's not what we're trying to do if you're really understood the real estate investor and what they provide to the community back better so I was trying to bring a lot more light to that so I went there with a lot of people do a lot of private capital. I was the only Conventional Lender in the room and I was very very blessed to get a lot of the time when in those rooms. It talking with these guys. I want get a get a big red neck with a braided beard in a black suit. And they're they're going to look a little bit cross eyed at you at first then you get the talking offering the information. I got a lot of great feedback from but now we have all this other stuff is supposed to be back out there this year. The Corona virus thing happened completely Impeded our ability to go back. I'm not done I'm GonNa go on. Keep kicking and screaming and screw end in yelling and behalf of the real estate investor because there's a segment of our population is not being seen for what they really are and I find. It's my responsibility to do the best. I can make that. We all need to all of us need to be put out there. Unfortunately those of us who are trying to build our businesses were head down working. We're focused on trying to be good solid contributing members of our social structure. And there's others out there who are not to have a loud mouth. 'cause they got time to be loud now. We got to open your mouth up more so when you all with Congress what what is what is that solution on on on the other end so that would be some form of instrument that they could do that would like we're kinda rafting tying into a current loan of investor has alone and they got a thirty year fixed mortgage with you know. Fannie Freddie that I like I'm doing here and then you have a tenant in there that qualifies in certain way that we can create an instrument. I've got I've got kind of a pilot instrument. We can put to work in a couple of different markets and see if it works that would attached to that deed of trust or that that that Attached to that note if you will does not impede title. They don't have ownership yet. They have rights to it and then because of that have the ability to refinance a home into their name. Then you have to go through the sale process and all that that would be I seek would be awesome if we could pull it off now. There's a lot of legal gotta get to that. I know a lot of closing attorneys multiple states. Talk to that. We could come up with a way to do it if we got that. Government thumbs up to building move forward. The problem is you know not all of them. Look at it the right way and the other things. They don't even understand us then really know. We're out there when I was in there. Talk commenting on it. Derek would we know nothing about this because they they're they are big big big fish to fry and I don't envy the job whatsoever but if we can get a lot of the the the attention it needs to be. I think what they're worried about. Low income housing l think it'll all be solved but we at least have you know we can take a dent. Could've done that sucker if we get enough backing when Investors are looking out three months down the line again. Now we're being offered firm units modifications all these different types of things. We've been doing a your business to overcome this crisis smoothly as possible. Have you been having conversation? Tenants have been at you. You suggest the People that are us go and talk to that rendering and see what their options are like. What are you kind of waters right now? So number one is in taking very very vested interest in each person. I work with and helping them to understand how they run their business. Because it's a truly a business right the people that I've seen the had the problems in one. There's not a lot of people not paying the rent. People are paying the rent in fact. I've heard some property. Managers saying their collections. Up from what they were before the crisis so very interesting the other is if you run your business accurately in a run it right in your setting aside reserves not trying to take your your your reserves to have Your Business Tessa or your business retreat going to three times a year to get your mind right now is taking from Your Business in If you're listening to this as called embezzlement is what that is. You're taking from Your Business and not setting it up properly your embezzling it for personal purposes. Quit that crap. But if you're setting up right. GimMe right reserves. You'll weather these things whether these fine if you have your basic principles in order you will weather just fine but if you really need it you lose your job. Tenants are paying that you have the forbearance to fall back on. But you don't do it just to do it too. Many people concepts is that a great. Is that a great message that I should use to be able to develop reserves forbearance four months. Set the money aside than having put on the tail end. They're not going to put on the tailing doesn't work that way. You'RE GONNA go four months payment on number five. You can pay all those payments in five months. That's going to suck and sitting. Your bank account is not going to make enough money to do that. It's actually going to hurt you and Harvey. You're going to get out of your pattern. Stay in your pattern in on the tail in. Because that's called a modification. You get modification. Now guess what you can get to get loans for a little while because you told the world I cannot financially handle my shit. So why are they going to put you in a position to get more debt? If you can't handle it handle it set it up front properly the other thing. I'm telling everybody with your routine when you start getting at the morning. Get this called the master key system but Charles Hamill. If you've never seen it you've never read it get. It is what teach you how to think so. Teach you how to get your brain wired right stink. I've got flags all over. It marked the crap out of this day and feed them. See All the marks on all the underlines. This thing is amazing. It's not just a book you read. It's a system. He was a It was a correspondence course. In nineteen ten he would send people a letter to three pages. You'd read that letter everyday over and over and over again for a week and do the mental exercise. And then when you're done with that you go to the next stage of training your brain on how to do what you want done. Quit leading stuff in there. Tony. You can't do. This will teach you how to do what you can. Do you know if you know if you've ever handled chainsaw before by believe is most powerful most elegant coolest tool ever created. You can cut down trees. You can make a cabin with Carter Swan if you're talented enough. That's also most dangerous. You must use it for a second. It'll Qilya so why. The pats ahead head because it sits on top of the most elegant most beautiful and the most creative tool ever created in in in the world which the human mind. That's why we need this to be able to take care of properly but it's also most dangerous. If you use it incorrectly it will destroy you and everything around you. So I'm reminded every time. Put the hat on. I've got five of them every time. Put the hat on my mind right. And there'd be ready to be doing the right thing when you feel overwhelmed or unfocused vauxhall separate villas. Oh you're starting to waver from your beliefs What do you do in the helps? What questions you ask him so he had to rewire all. That's what doesn't do that to me more. I spent so much time folks on where I'm heading that I don't even allow that doubt creeps in but it doesn't mean it wasn't there before There was times man member my career. I was literally losing it and I was about ready to physically implode I had to change. My environment is said to get. Wherever as I'd get up and move I had to go somewhere else at on. My wife says she just take off. Stand the grass get a different sensation. Change the sensation no end. If you let your mind starts to wander often established start creating All the worst-case scenarios. It's amazing how you end up there. What your head right. Get your head right it. You get to where you believe it in. You think then you believe in your heart follow then your ashes goes there if you start moving yourself. They're always move toward the goal. It's GonNa be hard is is gonNA suck. It's going to be really tough to climb up just like going up Everest. Interestingly enough people trained for years and years and years be ready to Climb Everest. They finally climate. And how long do they get to sit on the top of their goal not a time? Fifteen minutes Edmund. Himself he stood there for fifteen minutes. Quite because kill you. Don't sit there for very long. You get your ass down you go for another goal. My wife did instead of creating Everest of setting my goal at X. amount or I set my goal so damn high on never reached the top. You know my what. I'm striving for is what I call lending Tokyo a an environment in lending that is perfect as far as the environment that took. I do what we do our job. And I know that I'm getting close to having the perfect environment with all my staff and how we do things but I also know for a fact I will never find myself inside the walls of lending. Toby when these days I'm GonNa be dead outside the gate 'cause when I go to the grave I'm coming in. I'm never stopping and I think everybody needs to have that same mindset. Set Your goals so far away that you will never ever ever get there. But you're going to be on such a cool path that you're accomplishing so many things that you're gonNA at least recognize how close you're getting and it. Kinda sucks a little bit. Say Never GonNA reach your goals and I never want to ever want to be able to sit in my chair and CEO have made it because then guess what I'm dead at that point so The the demand I guess the answer to the Question. I know around the the hill a little bit with that the main answer. The question has a lot to just changing your environment. Don't let sell your mind. Get sucked into things. There's a there's a guy out by Dr Joe Dispensing ever heard of him. You're seeing this Ted talk into coma Washington or HE SHOWS REAL TIME. The brain has you think as is connecting neurons in the firing on another. Ron's it's amazing thing. There were negative thoughts create a whole new connection positive thoughts create a whole new connection you can actually rewire old connections. If you concentrate. You GotTa Watch that. He explains it in such such an eloquent way to understand. And once you understand how your brain works and you understand what you're doing when you're actually thinking thought and how it's rewiring things. It changes your mental thought. How you go about thinking your thoughts. You realize. Wait a minute if I connect that neuron now. I'm going to be thinking that way and I wanNA think that way. So then you physiologically know what's going on instantaneously in your head so you change your thoughts. That's basically what you have to do. If you don't like what's going on inside their change it I know sounds simple and I'm saying it simple but it's gonna be hard at first you have to create new Orrin. Watch that Dr. Joe Spends a ted Ex Tacoma just search for that Youtube and watch. It's amazing what he's telling you in. Watch it three or four times get. It did what he's talking about how to control your brain. Get the master key system. Learn how to have to to control it. I'll put that Al Quebec Link can be Sean as well and just because we've been throwing out Sony amazing books on this upset also throughout his book as well but I read. That's amazing just concede bought fact lifestyle design acceleration. Hank's is your favorite. Before the millions that has to be the absolute greatest asset in my life. The second best after that was Napoleon. Hill's outwitting the devil. Lavender the master key system. But I love outwitting Sir. What is your favorite lifestyle design act? This can be a business or tool. You know. I'm I'm one of those the best the best app I got with my texting. Text People's need this handle right and the the ability to communicate with my clients post closing actually way behind right now. I'm a month behind on anymore. Just be able to teach my texting. Hold the microphone down and have a personal message. Go out to each person I do business with. That's my favorite. Because they get to hear from me and the Exercise gratitude share with them. How much I appreciate the trust because without that I don't have anything I love it. What do you enjoy most about the way? The lifestyle is currently designed the opportunities that I have been blessed to create for other people. I've got twenty one phenomenal. Employees are amazing people and they are all pulling their hair because they can't keep up with it. I made a promise several years ago. When I brought somebody from the from the service industry she was bartenders. She was amazing. She's part of one of my main team leaders now and she made me a promise years ago that she never has to go back. And I'm blessed to be able to fulfill that and so That's that's one of the things I really really really enjoys. Being able to give other people opportunity and apple in also the opportunity of real estate investors get in the conference that they haven't compete building their portfolio. Because they know they have a battle hardened partner. There's not gonNA stop until they're successful sauce. What were the sacrifices that you knew you had to make before the millions to get to where you are today One of the big sacrifices lack of income you know when you when you look at going from a job where you're paid hourly or salary two hundred percent commission back in nineteen ninety seven and then having to sometimes you you were sixty seventy hour weeks and not make a single dime for two three months. That's happened remember going in on Christmas Day. Nineteen thousand nine hundred ninety eight Christmas Day to meet with a husband guy and his son. They were living together on refinance on their house. And that was the only deal is gonNA close in January. Got The closing docks to the closing table you know. They were with another lender for an eighth per cent lower interest rate. Never communicated to me you know. So there's that there's the nights that I was just stressing to try and feed my family in a win. From you know many times were dead broken looking to having the guts to stay in it because I knew there was something better down the road and I gave up and I found. The numbers are to go back to running heavy equipment. Go Back to David. Swimming pools go back back to driving truck. You know because I was struggling that bad but I stuck with it and really. You'll learn a lot about yourself when you when you develop tenacity absolutely beautiful. Who was essential to your crowd before the millions? Why well it's it's a lot of people. Essential was really having a person. Here in my life my spouse who believed in me even know there was times it was it was so damn roughly had nothing. She knew that what I needed was the backing of somebody nagging at me saying get out there and get a job. She knew what the possibilities were. She backed me up. She stayed with me and believe me sticking with me is not an easy damn thing and then the other influences are the. Who believe me at my current I presented to them something that has never ever ever been created in this in the history of this industry and some of them tried to take advantage of it. They're gone there's others that back me up and realized that and they came in behind me full force and we went from few hundred a year to now push on one thousand one hundred fifteen one hundred thirty transactions this month. That's what the numbers are saying. Within the next two days it's unheard of. It's amazing I honestly I can't even begin to tell you would've feels like 'cause I don't know it feels like Tuesday anymore because I just not wrapped up in. That was gone the day I found my my my books Amazon didn't rely. I mean after I thought about that was actually a Tuesday. The best things in the world always happened to be on Tuesdays. That's a whole other discussion. I can get into our youthful. I love this last. Not least why do you think so? Many of us are stuck before the millions even though we have every intention getting the millions. I really believe that people are sticking themselves there's a difficulty of in- themselves what they can accomplish because he can't see it being done. That's where I think it's really important to sit down in a quiet place and right. What's possible if you don't write it down. It's not going to happen you know. It's where book number one in my in my series the Q. Jail Initiative as far as quick jerking off. Initiative comes in. I told people read that. It's the little things you can write down in accomplish if you have not could it down on paper. There's a chance that won't happen. So there's too damn much doubt in their own personal capability they had can have all the all the Facing the world and somebody else amazing how little faith we have ourselves. You'RE NO DIFFERENT THAN BILL GATES. No different than than Jeff Bezos the differences. They just did it longer and the endured things along. They fought harder for what they've got. It's not an easy life. Life is too I. It's it's it's hard being broke and it's hard being rich. Both of them suck as far as energy. Got Put into just gotTa decide which you want to deal with. Benign fascinating pockets. So they have a ladies and gentlemen Mr Aaron Chatman if listeners to allow a little bit more about you find out some Info on company or even GonNa Cox work might find some French go to Aaron beat Chapman Dot COM to as one R. B. As in boy. Now you can. Aaron Chapman DOT COM works works as well. But sometimes it's acting up so I guess give out Erin. Beach Dot Com. It's the tried and true on. You'll see a redneck sitting on a porch. What's really awesome about that porch? It's at my office in Missouri. You'd brick and mortar in that state and we're having problems. I flew out there. I wrote down something. That's the story in the book. I wrote it down and gamified end up right there when I wrote down two months and two days later. That's my office. Missouri cabin built eighteen. Hundreds you go to my website. There is a spotless. As of course Erin only three stories there. I should be writing hundreds but trying to find the time scroll down to the second one renewed from obscurity. You could see the renewal of the other cabin. There used to be a church in the eighteen. Hundreds mazing things out there. I wrote it down. I ended up with it and the other thing. I was writing to production. I'm going to go six hundred plus units. Now I'm way beyond it. It's amazing what happens if you down to write up. Go TO CHAPEL DOT COM. You can reach out to us through that schedule appointment. You can look at the media information in there. I'm trying to put as much data I can't help. I love your service. The pupil earned. This has been MAZIMPAKA. And we'll talk to you very very soon. I appreciate the trust.
Defeating 5 Years of Analysis Paralysis to Do 4 Deals in 2020 with Jacqueline Smith
"This is real estate rookie. Show number forty three. I think people might be like. Oh what if they steal this deal for me. But i don't think that really happens in the of things know. I think they're more so ready to help you. So my name. Is ashley care. And i am here with tony robinson but today i am coming to you from houston texas to go set up here to say i'm like actually where are you. This isn't the normal clauses that led the me this show you the beautiful view but it was just. I was dr all white light. You can't even see out the window but yeah. So what's what's new with your tony new with me. We actually I just got an accepted offer on my last house for sale in shreveport so once that closes i'll be i'll be out of that market completely and then actually should be closing and maybe four weeks on our next short principal in tennessee. So lots of things happened. We're excited about your action. What's going on on your end. Well i got my liquor store going to rehab going on right now that i hope to have them both finished up this winter and you have but nothing else really. I feel like all. I do just like check reports. Check in biggs. And i've been so hands off really nice like putting in place de and i think that's such a good point right like about the systems because that's even though we've only got a few short term rentals right now. I just met with this other investor. And she's got fifteen short term rentals and she was telling us she was like you really want to focus on getting the systems in place now. So we're trying to. We're looking at maybe getting like a. Va and doing some other things. That'll be cool to helpless scale with more so i'd be interested to hear about the. Va can be like you actually ride kick back like getting so bored though and i was talking about their investors like wow your life and so lame remind the the next exciting shiny object to chase i guess but so today we have a jacqueline smith on who is a house flipper and the best thing about this. Is you guys. She is going to give you access to the excel spreadsheets. She uses to document and track everything for doing a house. Flip so make sure you guys listen for how to get those. I think jacqueline story is really interesting. Because like some of the other folks you've interviewed. She started investing this year. Twenty twenty and they've done such a great job that they've been able to leave their w. two so if you're looking for some inspiration and how to make that happen you gotta take a listen. Yeah it's definitely inspiring for sure so before we bring i'm jacqueline. Let's hear word from our show sponsor. Okay guys today. 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They really do pride themselves on providing their owners with consistent and reliable cash flow so if you guys are looking for high cash rentals and both single family and apartments you guys have to check out memphis investment properties dot net to see if they are good fit for you guys jacqueline smith good morning. Thanks so much for joining us today. Thank you for having me. We're excited to dive into to more about your story. So i guess sure with myself showed listeners. A little bit about you. How you got started in real estate. Investing sarah guess mainly this year we started actively investing the beginning of twenty twenty. But before that we did some live flips my parents were stuck on is making sure we didn't have like super high home loans. So we bought a foreclosures foreclosures. Our first house. They were able to help us get it fixed up. And they purchased it on their equity in this is when we were like nineteen so it was a while back. So we got that on their equity. We've fixed it up basically got it kind of strategy but we did our loans were like only fifty five thousand in so we were able to have some good equity in it just getting started off so we did that. Twice led the nose for about eight years altogether between the two and then we were able to take that equity kind of build our house that we were wanting on some land and then we took the rest of equity. We're using to invest. That's that's awesome. Yeah most people don't think of doing a flip is there. I kinda home purchase especially since you were nineteen years old. Yes what drew you to that at such a young age i i just remember sitting there looking on the computer at houses all the time and we were. I don't know. I've always kinda liked the do the rehab type stuff. I mean not at that time. I'd never done it before but my parents are pretty handy. And that kinda helped definitely for it so we got the first task for like thirty seven thousand. It was just crazy. 'cause it was on a couple of acres we ended up selling it for about one hundred twenty nine thousand so at start us off like amazing so while you into the rehab with that and then of course your sweat equity. Yeah so we had at least twenty five thousand in it. But i would say my parents kinda they were there like every day working at that time and putting it in psalm share that put in some money that they just didn't mean tell us about or whatever so they were like stuck on who. We don't want your loan above fifty five thousand start so that's career and being your. I still living flip where you actually really tracking the cost. Either right mean it's going to be you're thinking what is your primary residence and like oh let's money into it so they were helping us put a lot of money into it. We would put some here in there and we didn't move in until about halfway done so i don't know if you've heard like we're from hindi. Anna in there is like this big tornado. That went through at one time in. That was right when we got most of our stuff rehabbed so we got all new siding on the front new windows put in everything and then this is when we were living there at that time and in the tornado came through in ripped out all the siding on the front all the windows southern which that wasn't it wasn't horrible damage but we were able to make an insurance claim that got us like a free new roof on the house which we were originally going to do so that part benefited us in some ways but it was kinda of hectic for a little bit but it was livable at the time we moved in so just doing stuff here and there you hear those stories all the time you know about the insurance money actually being also a benefit he investors because they're able to do a little bit more so you have this. I live in flip. When you're nineteen. You said that you did to over the course of eight years. A how long were you in that first property before you guys in the one that we lived in that one for about five years we had our first two children there got married him then moved in there but then the second one we lived there for five years and then we put an offer on a hubs zoo property. That was another foreclosure we spent. I think we purchased for one hundred and seventy thousand so we were able to take the equity from that first house in all the profits and put into that one we ended up with about one hundred thousand dollar loan on it that we did the full live and rehab. But it wasn't anything major just all new carpet on new pain everywhere and it was great. It was huge house but we were able to sell that one. Great also mixture. Did you say hub zoo. Yeah had zoo. They have foreclosures. Like it's another website that you can find closures of kim against that a bit. Never heard of that website before. Is it like a typical auction site or you able to see the property before just walks through the buying process on their depends. You can go online. And some of them are owner like they're occupied and say you're not able to get into but is when luckily we were able to see with our realtor and she got us in and so we were able to put in on it and then we're also able to get a mortgage to get the house so it wasn't so bad that they wouldn't lend us on alone so that workout that's awesome. I think a lot of newer investors. And you aren't even using this as an investment but a lot investing have some hesitation around going th-this online auction sites because there's a lot of restrictions but it sounds like for the. I'm the same way like even now looking at auction sites. It kind of. I don't want to not be able to get into the property but that one works out great poorest because we were able to see all of it and check it out arson. It was actually about a mile down the road from the other house we had so it was a quick move. Now you guys have these living flips in the new said. It was earlier this year. The truck started investing with intention so walks through the transition and in how you guys wanted that point yet so our main goal was to buy some land and built our house on it before. I mean also along with investing so we were able to do that. We moved in last october into our house. And then we pulled our equity out the beginning of this year in them. We were able to start using equity lines to invest. That was kind of before. I knew about all the hard money lending and was afraid to jump in with all of that so i'm sure we could start a lot sooner but our equity is what we're going forth that point once. Now that you have your primary residence you did your to live and flips. How did you get started into actually buying your first investment property. What did that kind of look like. Did you analyze deals for years. Did you say okay. Wake up. One day we're investing. Let's by no. Yeah so i've been analyzing for like probably five years at least i ask Flips was kind of our steps in reading books. Every you know. I was reading them all the time. But i wasn't really jumping in like i would do all the reading but never really did action. I i never went to any meet ups or anything like that until this year. Which was like a huge change. So that definitely helps. We'll talk about the meet ups and you're doing that so most are virtual now. Do you think that really helped. You like accelerate your investing talk about that and how powerful it is for people to get out there and join these meet ups and network with people. Yeah that was definitely most important thing. And i still recommend everybody do it because i'm normally pretty shy and so i don't want to jump in so to go to those meet ups like you know. I'm just picturing all these in big time. Investors in there like who wants to talk to. Somebody knew that i was like. I don't know what i'm doing or anything but actually so i got on instagram. I started instagram. Beginning of this year only started to get our first clip which we purchase with a partner. Which i can go into later too so i was just kind of document and stuff. We were doing which helped a lot. But then i was starting to connect with other investors in our area that we're kind of more my age in one of them will several of them like my best friends now so we started go the meat apps and then people will be like. Oh hey you know she would introduce me to different people and then it just got really big after that it helps much now like a lot of those girls like there's wholesalers are some real and a few other things we go to like a weekly coffee in the morning instead. We just kind of go over things in. It's just awesome so we get new recommendations all the time i'm by new people that just wanna come on or you know that. Don't connect with many people our age. Install invite them like hey come hang out with us than try to bring each other end. But it's definitely important now jacquelyn if i'm a new investor an inspiring investor and. I haven't done anything yet. Well how do i go onto these meet. Ups i should. I introduced myself. I think that's what holds a lot of people. Love is that they're like you said. I haven't done anything i don't know anything. How do you introduce yourself. How do you start. Those conversations is a new investor. Still kind of feel that way. Sometimes they'll just go up and be like hi. I'm jacqueline i. Just try and find out what they do how they got into it and most of them are all like so happy to talk and then some people even come up to me and the guy you know who are you. What do you do and just goes from. There may just go into like. I'm looking for this kind of property or this is my goal. You never know if you'll find a wholesaler and be like hey i can put young buyers list in. That happens all the time. My sister-in-law in brother-in-law our wholesaler. So that's an easy introduction for K you know they wholesale like. I'm be happy to give you their contact information. The normally that helps a lot too. I remember the first couple of meet ups. I went to in person in buffalo. One of them went to the wrong bar. There was like two bars name. This what you're on finally found the right. Wh- ed so what else came like an hour after me. They had gone to their audiences. Feel bad but i also had to beg my one partner to go with me the one time. He's very hands on construction like for him going out into the city to meet up just to talk and hang house like a waste of time for him but afterwards he was like. Oh my god. I've like an adrenaline rush. Just like talking about that. I love to do and it is so fun once you get there and just a recommendation. The zoom calls are lot easier. I think it's not in person to standing there but recommendation. I have is find someone online whether instagram facebook or any kind of a group thing online that this meet up might have in connect with one person on their. You know their face so that you have someone to look for when you get there to talk with and then before you know it everybody will be talking with you and time will fly and mule even realize exactly yes so tell us a little bit more about the first property than the first one. You've got contractor. Yes so we got that one. In april we went with a partner so it was kind kinda like a pocket listing off Had written red looking for one. It just never worked out. We were able to secure it. In everything south we purchased that worked on it. Well with our partner he ended up paying for all of it so all the purchase cost kind of his younger. He wanted to get into investing but did not have time to do much of the other step around his job and everything so we agreed we put and we would do all the physical work in everything and then we funded part of the rehab costs and step which was an too much we put about twenty three thousand into it altogether and then we finally got around to selling it. We closed yesterday. Actually that way. I'm going to go to the bank and get everything out by neil special. You're doing this with us first. Before and i know this is often but yes so it took about sixty days enclosing the buyers were. Va loan and steps so it got pushed out a few more times but it finally ended up okay. So we're going to split the profits fifty fifty so and then maybe actually another one together. So we'll see. How did you find your partner. I mean this is your first deliver as an investment property. How did you about it just kind of worked out. I work for my realtor in town as her assistant ended a family but her son was wanting to invest in that way just it worked out. She put it together in. Our kind of franco knows no problem. That's so funny. Because that's how i did. My first property was the guy that i worked for an investor yet. I partnered with his son on the first deal he put in money. Yes great so yeah definitely. And that's the thing you don't know who is in your network and connections unless you're telling people what you wanna do and listening to what other people are looking to do to find that there might be people closer to you than you think that you can actually partner on a deal. Can you tell us a little bit about the conversation. How can you recommend to someone. They approach someone about being their partner. You know we didn't have much of one on that point because he was just ready trusted us just the family so we didn't have much of a conversation. Honestly i deal with his mommy in our realtor she kinda we gotta get together and stuff. So i'm getting ready to try and figure that out myself because we're wanting to partner up possibly sell my husband. Quit his job this year about two months ago so we could do this fulltime because we have like four flips going right now and it was just getting to our two time consuming. So we're looking to possibly partner for rental properties. Just since we're not gonna be able to get refinanced as easily now that we don't have w. two income. But we're trying to creatively. Figure that out right now. So i just i'd say real quick your first you're flipping and you guys have already quit your jobs. That's awesome congratulations relations. Probably a maybe not the smartest. But we're doing. I mean we're doing okay. So it's working out. I want to go back to your question. Actually because i think it was a good one about like. How did you build that relationship with that partner. And there's this old adage in marketing about people by and do business with people that know like and trust and you hear that a lot in the marketing space but it's the same for investing right and when you're looking for people to partner with you're looking for private money. People were going to do deals people that they can trust so for you. Obviously you already have this pre existing relationship with that person so it makes sense why they did it but for the folks. That are listening. If you're looking for someone to partner with start being more vocal about what it is that you're doing you know nasty and i've talked about this before but even if you haven't done a deal yet start talking about the deals you're looking at in the deals you're analyzing in the markets. You're looking at him. Why we're looking at those markets because the more that you kind of spread your knowledge about what you're doing the more people start gravitating towards you even before i was you know the co host for the show. I had a lot of folks reaching out to me just because they saw the stuff that i was doing on social media. And you'd never know who's washing so. I'm sure jaclyn you're documenting everything through doing right now and i'm sure there's a lot of people who are like man. I really wanna work with jacqueline's to hopefully she reaches out to me. I bet people are thinking that right. Yeah it really helps them. I think people could just go to like their meet. Ups like you have a deal. You're wanting to work on or you have numbers already ran out. You just need more help with it or anything. Our just take that sheet with you and be gone to that. Meet him like. Hey what do you think about this or you know. Do you have anybody you think that would be interested in partnering with me and i just. I know that people would just pass long. They're so nice at least at our meet up. It's great so especially if the reno inexperienced investors they might look look them be bothered is a great deal. Hey let's partner on that and that's like an easy deliver them because grind for so long. Let's find a easy deals that are brought to me and i think where people might be like. Oh what if they steal this deal for me. But i don't think that really happens in this kind of thing you know. I think they're more stuff ready to help you. So yeah i agree with that. To how many deals that you guys do before you made the leap for your husband's to walk away from his w. two job so we did. This one flipped with the partner which we were helping to close before obviously yesterday so we knew we'd be having income from that that we could put away for you know our security fund in are so many months find savings and then we had one property that we bought in april and we refinanced it. It was kinda like a bird property we had that done in may but we decided the numbers can work better right now for us to sell it so with him. Quitting we decided. We're gonna sell that. So that should close the end of december and then we have two more that we're working on that be done and around february so with him quitting what we did was we got him kinda he's really handy on contracting type stuff hands on. He's more hands on person so he doesn't want anything to do with the numbers. Any of that you know. So we got him. And i'll stay started and because right now we're using a hard money lender for our latest flip. Sounds like if we're paying another contractor we may be paying three grand a month or you know whatever to be doing these things. Why don't we just turn it to where we're paying you that money to that's your income and we're also getting income from our flip at the also so we were kinda double time in. I guess so instead of another contractor. I love that too because if you take a partner on. I don't know if you do you have a partner in that current deal. You're talking about okay. So if you take a partner on a lot of times people are like how do we split the equity like my husband. He's going to be doing the rehab. I'm going to be doing the numbers keeping track of the expenses and then we have the guy that's putting in the money running something like that. Where if you actually allocate a price to each of those jobs and that's how you're paying yourself you can split your equity no divide by three people and then say okay. If you're doing the rehab you get paid three grand a month. If you're doing the bookkeeping you get paid a thousand dollars a month or something like that. And that's a great way is to pay yourself up depending on what job you're doing for the flip or even a rental property if someone's managing stuff like that so i think that's really awesome. How you guys are doing that. You're kind of making those multiple income streams problem. We're making it work so do want to go into a little bit about what your duties are for the flips. What you have to. Yeah we kind of were still kind of figuring that out right now. We're transition to where. Like i do a lot of the his on step also the painting the kind of the more basic stuff like the heavy duty lifting beams that like that but we're kind of starting to transition gross the more this year and so i just need to be able to be in office a few more days a week than i'm able to right now with our kids. Let's also hectic because you know virtual learning right now that we're trying to figure out that out that so i want to be able to do more of the hands on looking for deals getting contractors fed up and everything and then he can be more so meeting the contractors out there getting everything schedule and working there physically today doing contracting work so mike we hire out electric coming stuff like that so he doesn't do that now. I wanna hit a little more jack on the fact that you guys husband walked right from his w. two because in case you haven't noticed we're in the middle of a global pandemic. A lot of people are afraid to start investing in real estate ride. There's so much that's going on right now. There have been a lot of people who like you have been reading and watching for years but when when this happened a lot of people kind of took a step back and they wanted to take the wait and see approach but you guys went the exact opposite route right in kind of win vs into this which which i applaud you for but i just kind of walk through a little bit more about that mindset like where you guys nervous you know having your husband away because it sounds like you did it before that i deal even finish right i could just walk through that mindset. Yeah so i mean it was just nothing that i've always wanted to do and i'm being like it's just nothing was gonna turn me away. I'm gonna do it no matter what happens in the market like somehow we'll figure out but so him he. It really wasn't expected the day that he it was a factory type job he'd been there eight years like steelwork people get hurt. They're all the time or you know steps matches over no. It was a rough job and he would come home just completely exhausted every day. Because they worked non-stop and then he'd be gone to the other house. We were just like he was exhausted. It just got to the point where he had of you like rough waksman. It just wasn't getting any better so he was like he just kind of threw it out there. You know what put and i was like. What if you do and it just kind of ended up you need and go back and say yeah. We'd always thought we'd have more reynolds before. We had quit because he knew that would be our maintenance you afterwards but so right. Now we're going to work on looping until we can get our good couple years worth of income built up or you know tax history rise and then also like i said. My sister and brother-in-law flipped house. They wholesale but they're also flipping now. So i was like well. You can always go work for them tracking wise if we needed to. Because they're going to always be hiring people for random steps out we need income otherwise you can go do that ever work and then or getting so much more into our local real estate meet ups and everything like we have a lot of friends in there. And i'm like. I know you could easily get work doing random stuff for them so we just want a new. We figure something out. We'll kudos to youtube for having the confidence in yourselves. Right in bed on yourself to be able to figure it out right and find a way to make it work so that story. Now i guess last question. We didn't really talk about this. What made you guys choose flipping rather so many other ways to get started. It sounds like you know. Some folks are wholesaling. You can always you just like the long-term burr strategy like what made you say flipping is the path. We wanna go down. I guess i would love to bar so wholesaling really isn't for us. I am not like a negotiator ali. That's them. But i love rehabbing steph and kind of doing stuff ourselves and everything so the birth strategy is our main thing i wanted to do but now that are issoire stuff has changed though loping just kind of how i think we need to just do it for now especially with our money. Lender that we're doing. I just wanna add right. Because that's a really common strategy right where people use like flipping or wholesaling to like these big chunks of cash right to kind of be their active income and then they take those big chunks of cash put it into the burs kind of more stable long-term investment. So sounds like that's the path you guys are going to eventually go down. Yeah yeah that's our plan. And then once we get so many than our money lender will be able to find more deals. This is our first one with them. After it moved. Then they'll be able to do a couple at a time so we're excited about that. 'cause we'd rather use that dinner home equity if we can earn your current goals with this business. Do you have like a one year. Three year goals set for this. Yes so in this one and a half year. I think we have left to get our tax history started and then i really wanna build up just single family rentals for the next year in then hopefully wanna move into multifamily but our goals change so many times this year already just so it's kind of hectic at. I don't even know you know it could change next month. So i just getting really everything. So yeah i could do this shiny objects syndrome like oh we. You can do jason. I know i'm still dying. Try like an out of state investment. Just because i want to try. So i don't know but so let's talk about that numbers on your recent deal that you just closed on. Can you really dive into that. You know how you financed it. What the rehab looked like. And now what it ended up being at after sold up they had on the mls for seventy nine thousand. It had actually had a price drop will let me start out. They had it listed. It was pending from somebody. That deal fell through. It's a few miles down from our house side. Always been kind of in it and then it got back on the market in drop like fifteen thousand so then it was listed seventy nine thousand. So i was off for that day i went install it they had multiple stylings so we knew everything around here has been going over asking like so. We ended up putting an offer in ninety. Two thousand one hundred. They came back to us in accepted our offer. We went with share point lending a local kentucky. They are the hard money lender we did. And they required ten percent down of our purchase price. So just what we purchase it for so we put at ten thousand six hundred dollars down. And then when we went to close they took care of the rest of the purchase price that they pay like eighty seven thousand and then they will end up to seventy five percent of the arb. Our total is like one hundred twenty six thousand that we have available to draw from them so as construction draws. But we know. We're going to go over that a little bit so we are gonna use some of our own money from these other flips that we have to put into or think we're gonna have like twenty thousand. We need to do ourselves but the house is worth around two hundred thousand so we should make around forty thousand. I think by the end. But it's gonna be done probably february. It's going to be like few months hem but we're just kinda in the middle of it now and that rehab costs that includes what you're paying your husband to correct. Oh yeah we take in some draws out which we already right now. We're pretty much maxed on our draws with them. We've used all that money but since we've clubs. We were waiting on that money to come in to put into that rehab so we would take the draw like we painted the whole exterior of the house and we paid ourselves for doing that. So we paid like fifteen hundred. I did what we paid. Another activity painter. So i was like alert Do at this time. We'll pay a set in some other things we've done also like some demo work. We paid another company at another house. Demo work we just use that for us and so now we're just kinda doing and we're not going to be paying ourselves. We use our own money at this point but yeah it helped while we were in between so. That's kind of nice because a lot of times. It's the delayed gratification. Like okay. we're doing all this work now. We're we're not getting paid until the house sounds. We're now you're at least getting well. You know what if i go and paint today. I'm going to get this money now or something like right and it helps while that does inbetween yes. So let's talk about hiring contractors to do these jobs. Do you have a system in place for that. You get multiple bids. Does that work for your business. Yes so i haven't had to do like a full contractor. That does a lot of our stuff. We do some contract out. Certain things like our electric. Our water like plumbing. We have kind of a friend family. that does plumbing. so he's what is pretty good pricing some electrons. We've been through a few had some that. Just don't get back to me or you know so. We're still kind trying to figure that out. We've got one. That i think is gonna work out. So he's supposed to be coming soon. But i had to do some bids on the roof. Actually this was kinda crazy. This company had done another route for us but then they came to quote this one included at like twenty two thousand for all new roof. Some siding sofit patia got and i was like that's really high so i was searching around for some quotes. Got several more that were around. Fifteen thousand nine hundred which is a big difference so i ended up not getting great reviews on the ones that quoted us lower but i told the other company like hey. I can't do it for this price. We're getting fifty nine. And they were like oh wall. We might be able to come down. We can come down to that. Carry income down six thousand dollars off of that. We use them. But i don't know that we will continue in the future if we have to keep negotiating every single thank quotas. Yeah that's a good lesson right. But i think what i want to get from you. Jacqueline is like if i'm a new investor and i'm trying to buy my own i flip. What's the best way for me to estimate what these rehab costs are right like like if i'm a newbie and i don't really have this back around the tune your husband now have a. How did you guys go about doing that. When you're newer to the game well with us doing the other houses. We've done my head kind of an idea and then personally. My dad also has flipped some house for my brother and sister. They'd done the same thing we did. So i kinda followed along with. There's got numbers. There was always asking him. Like how much was your furnace. Install on everything in kind of keep up with all that i would just get which i still haven't ever had contractors come out before i purchased the property to quote everything i just kind of do estimates. I know there's the book on estimating rehab cost. And i went through that some so i think that would be a good start just an idea especially if you go off of the inspection report. That would be what i would start doing. It skipped the inspection report. Figure out what it needs to be done off of that and then you can go from there. That's great advice. I know what i've done in the past right. It definitely is a lot easier once you get your first deal done because you can kind of use that as like reference for future gills will cost. But there's a few ways and this is just me. Sharon some things that i've learned along the way. If you have like an investor-friendly realtor a lot of times. They can give you some decent ballpark somewhere. What rehab costs might be. That's how i of got started. Initially as that. I had a realtor who is also an investor himself and he was able to give you some ballpark figures. But worst case scenario you can really just guess when you're doing your initial offer to the seller because you're going to have that inspection period like you said to really go back and kind of do your real due. Diligence said that you assume rehab going to be ten thousand. You do your inspection report. That comes back. You have a contractor. Go through all during your your kind of due diligence phase. If you're off your and you go back and you just you're offering you the seller accepts or they don't and you know you can kind of take it from there so i just wanted to highlight. That's what i've seen in the past. Yeah that's a great idea. Yes so i want to talk to you. Also now jacquelyn about his property right. Sounds like you guys are having some good traction but we're you would all nervous about going into these flips knowing that there's a lot of folks that you know unemployment's going up and these things were happening and it's kind of scary out there without spend on trying to sell these properties. Yeah i get a little nervous This one we haven't sold yet so we're still in the rehab process. Which i still think we'll be okay on that but another one. The first one we saw we were lippi. It was kind of in a more c class area of our little town which is not you know a horrible road or anything but we were kind of iffy feel that it ended up sound fine but so i just of get a little nervous with everybody with unemployment. Once that ends in people are so other income history that maybe they're going to have a hard time getting approved for their own so we'll see how it goes. How long did it take to sell the first house. How long was it on market. We actually got an offer about a week later. It didn't take too long with originally hoping that we would have one within the first couple of days but yeah it's like a week which felt like a while but now it was okay and then it was about sixty days to closing so yeah i don't think a leak is i mean here. The market is so hot at every single listing. The realtors are putting like offers are due this day at this time like they give a week just to view the property sometimes even only two days to view. Are you seeing that in your market to where there's not enough inventory. Oh yeah definitely will with me working with our realtor. I help her schedule showings in stuff like a lot of what we call. They're like oh we've already got multiple offers in you. Know it's too late already after the first thing we're like okay. Or they extended like we need the highest and best buy tomorrow night in. That was just on several recently. So that's why there's like nothing lasts Definitely in certain price ranges and if they're remodeled at a decent price they're gonna sell fast so my brother is trying to buy a house hack. He's moving to rochester new york which is about an hour and a half from where we live in buffalo and so we went and looked at a property. I'm alas and there was an open house or as you know they had twenty seven people that had gone through the open house already and it was just an hour long open house while they had already had four offers in and then i think they had a total of maybe seven offers the next day when the offers were do but what we learned like even just being an hour and a half away the market there was very different. You had to basically have an escalation clause. So i hadn't even heard of this like i guess it's been a while since i bought something off the mls. So an escalation clause is when you put in your offer but then you say i will add five hundred dollars onto your highest offer up to a certain amount. So if i'm offering one hundred thousand. I can put an escalation clause saying whatever your highest offer is. I'll add five hundred dollars two hundred dollars a thousand dollars but i won't go over one hundred and twenty thousand so if someone's offer is one hundred and nineteen thousand. I can get that property. Because i can get it for one hundred and nineteen thousand five hundred so just all these different kind of strategies that people are using now and our realtor side basically no contingencies. No inspection to really wanted a cash offer. But i really want my brother to us enough. Yeah so what does that look like. A near market putting in offers like that on the properties. You're buying yeah. So i have some friends in kentucky. So they're little different. 'cause i'm in indiana but one of my best friends is a realtor in investor. And so she was telling me about the escalation. She's like what is it about every other day. You know all the time here. And that's how she got her house. Purchase than so my realtor here. I was like we have that you know. And she's like yes. It's just barely used in our area for some reason. I don't know. I guess sometimes even though like you have the highest offer that maybe one offer lower maybe less contingencies than everything may still get picked even though your explanation posits tires so it just kinda depends but most of them are going multiple offers. Yeah and that's kind of how that we just purchased was. they had so many other offers. That's why we offered over asking to purchase it so know you mentioned earlier jacqueline that you guys are planning to profit about forty k. On this deal. Can you walk us backward on how you calculate that prophet because i know flipping. There's a lot of costs that i think. New investors forget account for so educate. It's a little bit on how you went on that forty k. Yeah so. I just broke down and went through literally. Every single thing that we've done from other properties like how much paints gonna cost for me to do it or cabinets flooring we've had a few unexpected things like we have a fireplace. It's a wood-burning stove and we were like that probably won't be a big deal to fix a never ted a fireplace with four never dealt with one but we ended up spending about five thousand on that to get that up to code and everything. So that was kind of unexpected. We knew half. The house was older than half. The house was like brand new. The sub floor underneath of that looked awesome but when we got to the It's been kinda crazy. There is like there was the set floor which was hardwood in then. They had two layers of drywall and then they had carpet padding carpet so likes. I've never seen dry while on a sub for so we've been ripping up drywall in those back areas. Because you couldn't see that on the inspection because underneath it's hardwood top. It's carpet is that we went through thirty are dempster's already and we've been taking steps on our trailer It's been kind of crazy on that but yes so we just kind of broke down every item. How much we're going to spend our what our budgets should be for it and we've just been gone off that went through the realtor fees. I went ahead natta than i know from the sale price what we should be expecting on that in just kind of a lot of people. Add like a ten percent contingency just in case something else comes up which i recommend doing 'cause it definitely will. What about holding costs such as you know the property taxes. You're paying during that time. The insurance any utilities yep turned on yes so we are paying for all of that. I'm also paying a thousand dollars interests for having it with the harmony loan which just started this month. It was like delayed month out. We're paying the electric water Hasn't been bad so far. The waters about twenty dollars electric's about less than a hundred which we just had turned on a little while back and then the insurance is like three eighty somewhere in there for three months and actually on this property. We've already had a meghan insurance because a few weeks ago right before thanksgiving day before our property got broken sue and they kicked the back door and it was like my husband left at four o'clock at night and we live down the road so he left some of those tools and everything which we normally do which we aren't doing anymore. Yeah they broke in apparently overnight so oliver tolls and everything so we had to file a claim. Luckily we had builder's risk insurance on there. And i know a lot of times. That doesn't come on your insurance plan. We had up to five thousand. We made it. It was almost about five thousand total so they gave us check for about twenty pack on your back since our deductible was twenty five hundred so that at least helped us replace arm angels. That's awesome. I know about two weeks before that we had our lawnmower. Stolen it or other. Property was parked out bagging on. It's definitely the Leave anything in. I didn't have the key in it. But i would recommend put those up because you can buy like a three dollar lawnmower key at any ace hardware anywhere like that in. It works in like most long hours. I didn't know that either until then. Yeah so i have found a good security camera. I know some people are looking for some rehab properties that don't have wifi and so we purchased one. It's called rio link. I don't know if you've heard of it but it's really go and then you can get this solar panel that attached to it in you just by like a sim card or data carpet t mobile of the store and it can go straight to your phone in everything without heaven. You know wifi hooked up because that was our problem we don't have. It was about two hundred bucks to buy one. So i like to have a few more. And then there's no monthly costs yet. Not really the monthly costs. We just feed your data plan runs out which is normally like twenty five bucks. I think to buy art for it. We haven't bought it yet because we're waiting on the camera to come in and then we're going to get the data card and see how it works but definitely worth it especially only have the property for three months. Then you know right and then you can keep using that for another priority right you can keep your eyes move. Our s very cool. Yeah it's great advice okay. So let's move on to our next segment here where we want to hear about someone that has really been a valuable player to your team. Someone who has really helped you grow and accelerate eurostate business and we call this the mvp. I hope you guys are enjoying this episode of the real estate rookie. We're gonna be right back after this quick break. The holiday season is quickly approaching for many families. To summer is one of the most expensive months of the year not to mention the busiest. So if you guys are looking for fast and easy way to put some money back in your pocket and did i mention doing it right from home. You can go to policy genius dot com and re shop and reevaluate your home and auto insurance with policy genius. And it's really simple to use. They been able to save their home and auto customers in average of a thousand dollars per year. So i had do policy genius dot com and just answer a few quick questions about yourself and your property. They will take care of the rest. They have licensed experts on staff to maximize your savings and make sure that you are bundling your home and auto policies to get the best price though compare rates from over thirty top insurers from progressive to nationwide to find you the lowest quotes this kind of service has earned policy genius five star rating across over sixteen hundred reviews and different platforms. So if you're really feeling the pinch during the season or just want to save some money like me find out how much you could save on home and auto insurance at policy genius com. They've been able to save an average of a thousand dollars a year for their home and auto insurance customers policy genius when it comes to insurance. It's nice to get it right. So who is your most valuable player. So i have a lot but my main ones would probably be my realtor for like the professional. She just helps me so much like be like. Hey what do you think this property or can we go see this it. Can you meet you here. She's always willing to be like yeah. Let's go theater printed out or you know it's been great and she'll give me her advice and run comps anytime you need somebody needham or just double. Check my comps and everything. So she's definitely invaluable. I have another friend that. I've met through our local korea real estate association and she's a realtor investor in so i call her all the time a mike. Hey what do you think of this. Because she's good on the rental side in everything so she's got lots of ideas. She does a lot of the mike butler courses and things like that like the videos. I don't know if you've seen that he's got ten at training video that you can show your tenants manet moving in. It's just like a ten minute long video. Yeah would it be like a welcome video to them as like these are the processes of how you know the tenant landlord relationship goes yeah it just kind of overviews and be like call me for this or you know. This is what you need to do for this. And it's just like nice and you can buy that on his website and everything but she's like. I showed that to my tenants while they're watching that video. I'm going through taking pictures and doing just like the general walk through before they move in. So that's kind of a good resource in. He's got some other things. I think on his site that are helpful. I'm just able to call her all the time on rentals or just any investment questions and she's also on our board of r real estate investor association. So so how does someone find a great year old here like that. I got buffy. Just because i've had the friends of the family and everything. But i will go to the real estate investor meet up groups and definitely finally using them. Because i mean. I could find several that i would use already. If i didn't have my realtor that would help me be investor-friendly in everything so that would be your main thing to do is a lot of people aren't as investor knowledgeable as maybe some others so just going there. A lot of them are realtors that her in there. So if you don't have a local media happening right now bigger pockets. Obviously a great place to go. I know the first real that i've ever worked with my found him on bigger pockets. Like i don't know one of the forums or something like that and we've got the real estate rookie facebook group. There's a ton of folks in there. As i'm sure if you know you kind of put a line out there that you can connect with as well so lots of different forms. I want to take us down to the rookie request. Line jacqueline. you've got so much good knowledgeable. I want to see if we can pull some more out of you so for for the listeners. Guys wanna to get your question on the show. Just call one. Eight eight five rookie lee voicemail. We might use it on the show so today's question. Jacqueline guy's name is rick. I'm out in knoxville tennessee. Having trouble convincing my wife to start investing. We do have a sizable amount of debt. I am currently a manager at a coffee shop. Our income is not very vast. I would say. I'm trying to figure out if i should get my real estate license to make a little bit more and how can get hurt on board. Should i bring apart money. thank you you know. That's up to him on his real estate license. I don't know what his goals are. But if i were him. I had a real estate investor group in the area. I would of course try to go to those together. I don't know how the debt you know has money situation is on that side but looking into maybe partnering with somebody would be a great idea because they could possibly fund the money or they could offer to do the work in just things like that just different alternatives to or even using hard money which is going to be harder if you have so much debt like depending on how his mouth are. I just have to know more about probably how his goals iron. I wanna know a little more information but definitely start with the meet. Ups may be safe as we'll go with them and just kind of hear about jacqueline. I think you're a good example of this because you are working for a realtor. And i'm sure just being her assistant you're getting access to a ton of people in her network. You're seeing different deals. Go through the dust that other investors are buying so that. Be something that you recommend people. Is you know getting a part time job working for someone who is investing or who is a realtor may be starting out and seeing you would actually like to get your license. Oh definitely that's one thing. I wish i did before. I was in healthcare before a respiratory therapists in the hospital. So for several years i went back and started. Is that wasn't my long term goal was to work there. I never really loved it. But i wish i would have went and worked for a property management company or realtor's office sooner. I just got lucky this year. She got her office here in our town and so it worked out. We could work together. But that's definitely like the best way i think. Just learn from other people on even if you have to float around to a few places like start. Goto property management company worked for them. Just get their systems down figure out how they do it deal with tenant relationships and inspecting their air apartments and everything and that just benefits so much and there's also the second part of that question too about like getting your spouse on board and i think everyone's going to have different experiences without it also depends on what level of involvement you want your spouse to have if you just want permission from your spouse right than i think what you said you know about like. Hey show them that you're serious you know. Show them that. You're going to these shows. You're reading these books. Show them that you're networking with other people. Are doing these deal analysis and things like that but if you want your spouse to be involved that one's a little tricky right like when i first got started my wife wasn't really involved right. She knew what i was doing. She was supportive of it. But it wasn't until we found a niche that excited her as well she actually got involved in the process. So i guess my advice to rick would be if you're looking to bring your wife and maybe see if there's a strategy that she likes more maybe some buying holding beads fixing flip guys or maybe it's wholesale maybe there's something else that she likes and one thing to add onto that to is show them the numbers like if you have a deal. You're looking at like break it down and be like this is where i'm getting the money from so for me to get my husband on board. I wasn't using any of our own money. I had a partner. He was supplying no money so it wasn't like i was risking our life savings to do this so that definitely helped me but then i showed okay. This is how it will work. Look at the numbers. Here's the cash flow at the end of the month. Like i'll be getting this extra and at that time probably wasn't until our third proper. You were actually got into dave ramsey and paying down debt and i was like okay i can use this cash flow to accelerate paying off my student loans and i did and then after. That wasn't even more exciting to him. Well let's tackle the next loan. And so just showing the numbers and really if you or your spouse aaron into disc profiling doing that and you can see what would work for your partner to. Are they a numbers person where they want to see those numbers or are they more of. I don't even know what else do for you know. They wanna see the plan or but using the disc profile can really help. You see how you would actually pitched list. i guess. If that's the right word to your spouse y- put a link to that in the show notes to the disc profile. I'll say my husband actually wasn't always on board so that was kind of a big change to for years. Whenever i was just i always wanted to know more reading books and i was trying to get him to read books which is not his thing like. He's not gonna wanna he does not wanna read. It must be hands on. You must be doing staff like even sometimes watch youtube videos on how to do plumbing need like i don't want to do that. I wanna go inaccurate physically do it. So that was hard for a while. Just getting him on board. And so yeah like i just thought we just had a figure out what works for us like he the paperwork and that's not just it's not going to be his thing it never will be like. He is hands on. Who wants to know more about contracting staff. He wants to just do. That's his thing and that's just what we had to figure out that we are separate in that way but it works out both of us together doing that and the fact that you made it so that he could quit his full time job to had to be a nice incentive to show him like. Hey we can make this happen. So that's another way you can pitch it i mean. Do you want to quit your job. Because like it was always thrown out there so he knows like three more years. It was like tiller to here somebody more years but it just like the jonathan so yeah i love that now jacquelyn before we let you go we want to ask you a couple more questions to get to know you a little bit better so i guess my first question for you is what tools or software are you guys using to help. Support your flip so you guys managing this. You're like excel and text messages or do you have some kind of a website. What's tools or software. You guys use them. Yeah so i have a great excel spreadsheet master in law gave me and it's been awesome so i wish there that with anyone. They need something to get started our taxpayers and loves it. But i decided this past week i wanted to start using books with my tax advisor and so i had a one on one meeting with them and they walked me through all of it and everything that way. Next year i'll be on-track. They can see everything and it because we want to be able to move up a little bit from there so that's mainly how we do it but yeah glad to share excel one just because we like if you have multiple businesses. You don't wanna have books each one. If you're just starting out is kind of expensive but yeah that'd be awesome. Yeah inside the excel file or using the just attract the expenses or give us a little bit more on. What's in their check. Everything on there so sensitive income which are basically like when we deposit our main amount that we're going to transfer to purchase the house and then income ever comes back but i save on mark seats. I tried to go through once a week and just enter mullen and try to reconcile with my bank. I keep instead of just my bank. I have like a i guess like a ledger. Like i keep all my bank accounts in their network. I sync everything. Make sure things on there. And then it sinks onto my spreadsheet will find a way to link that on the show notes at bigger pockets dot com forward slash rookie forty three. Yeah we should be able to add that on there. Thank you very much for sharing that. I know everyone loves the documents and resource advisors could share. I had one more thing. I was going to share. If it was okay yes so. We went to burger that property. We searched around. I don't know if you've heard of aaron chatman. Nothing chatman that. Y'all on the podcast. The other day which i got another story i wanted to tell you on net anyway. So this aaron chatman was security national bank and i have other information day or out of arizona but they specialize in investors so they are very familiar with the bird method. And that's what they specialize in doing. So if you need someone. It's all online. Like i. Just use my act upload on my documents in all our income and everything in it was like the best process ever so i can also you his sheet that he sent over their basic information on terms and everything. So yeah he has so. I was listening to your podcast with aaron chapman. The other day that you had him on and i happen to be listening. I was like oh this is probably the lone officer in any gotta talk in and he was like. Yeah we're in louisville kentucky. Which is our area. He started talking about his triplex or his duplex got with that single family and so the more he talked. I on his facebook and i saw that. He's in my area right down the road and so he kept talking about it and talking about it and i was like this is the property. I got obsessed with this house. Because i saw it on the market and i was like no way like property. It was like the head. I was analyzing i was like. Something's gotta be wrong with this place but i love that. He explained what ended up happening with it and how he did seller financing and stuff so it was so cool and then we connected after that. I'm going to take my next week. A love the show is like connected people like that oral. I was just like. I just thought it was the craziest thing ever so. And so after he was on the podcast. Did you reach out to him. Yes yeah i reached out to the homes like hey you know i'll look at just what you explained right there. That short little bit and i mean spent a couple of weeks so just a short amount of time. How you've already become friends with him. His wife sharing resources. Oh yeah i was like. Hey we go to a lot of meet ups at your ever interested on. You know y'all come with us or whatever and they're like yeah. We're always looking for people that are aged because we don't. I'm not a lot so yeah so it should work. Real estate is a relationship game. Always right so. I love that you guys are putting that i. It's beautiful yeah. I love it so my question for you is what are some must have that you have to do for flips in your area. I mean that every flip has to have granite as at every house needs to have air conditioning. What are some must have set. You must do. Yeah so basically air conditioning. Everybody hasn't been as picky on granite lately in our area. I don't feel like. I mean it's definitely nice. Touched but leonid the clippers in our area had been you know had no problem with doing laminate but also had connections. That are like granite. You can find lower prices just right up a little bit more expensive but definitely a better look but no just think all fresh new paint new flooring just cleaned up to places just. Aren't you know ready to move in israel you can get it move and ready to where they don't have to touch anything. i think. that's just the goal around here so well thank you so much for sharing everything with us and can you tell everyone a little bit about where they can reach you and find out more information definitely. Yeah i'm on instagram. Jacqueline smith dot r. e. high end. Then i also started a youtube channel. So i'm trying to post more on there as we go just with documenting everything so if you wanna see more about the flips that we are working on now that i talked about you can get on there and check out our progress post monthly. But yeah those are the best two ways you can also email me at l. e. j. dot smith at hotmail dot com. Yeah i'd be happy to connect with anyone. Yeah well thank you so much. We definitely had a great time listening to your story and make sure everyone checks out bigger. Pockets dot com slash rookie. Forty three. we're going to add all of jacqueline's great resources onto that page. And then don't forget to join our facebook group just search real estate rookie. I'm absolutely care at welcome rentals. And he's tony robinson at tony jay. Robinson will see you guys next week.