RET W/ Randy Stedwell EP#13 | Exploring Detroit: Investing Strategies, Flips, and Buy-and-Holds →

Hey Everyone On Episode #13 We will be Talking with Wendy Barber about her investing in Detroit and how she flips and does buy and holds in the city of detroit. We will also be talking about upcoming events and her future plans for investing. Come join us this will be a great one to go over with if you are an investor and anyone looking at real estate right now. If you are joining LIVE then put your questions in the comments and we will answer them LIVE.

JUNE 3rd is the DETROIT REAL ESTATE BIZ EXPO Get Tickets Here

https://www.realbizexpo.com/DETROITRE...

Wendy L. Barber was born in the City of Detroit and has remained a life-long resident. She is a wife and a mother of two sons. She is a proud product of the Detroit Public School system, graduating from Cooley High School in 1985.

Wendy also attended Detroit Business Institute after graduating from high school where she received a Diploma as a Word Processing Stenographic Specialist. She returned to school a little later in life and received an AA in Criminal Justice from Wayne County Community College and is currently pursing a BA in Science and Human Services from The University of Phoenix.

Wendy began a career in commercial and home cleaning and started her own business, Chore Coach Cleaning services in 1996. She then moved into commercial real estate investment in 2001 and is now the proud owner of Carefree Adult Assisted Living, with several facilities working with adults who have varying levels of both mental and physical disabilities.

Wendy is now moving into residential real estate investments, buying, and renovating properties in the city of Detroit. She has become very passionate about restoring the beauty of her beloved city, all while creating general wealth for her family and the community. She is huge on community service and volunteering. She works with seniors, foster care youth and adults who have aged out the foster care system. She volunteers with organizations like Sister Friends, Breast Cancer, Ovarian Cancer, and Lupus Awareness Organizations. She is a dynamic woman who cares about others in many capacities.

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

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And you're asking like what do we do about is you sign a contract with someone so real quick before you did

that did you get it

more than 30 years I got my real estate license and your your origin store is

that he he made an age joke the last time we were I'm gonna I'm gonna use that Kuka

you know I'm a little more strict with what I'm I'm looking at

Hey everyone out there we are a little bit later sorry about that we had

some technical difficulties that's all right so we are here today yesterday was

a holiday it was Memorial Day I celebrate with my family so hopefully

you guys did too and so at least got you a break from me anyways so

um with you know with that being said we have Wendy Barber who is a great

you know great investor in the metro in the Detroit and Metro Detroit area mainly in Detroit in the prop Detroit

proper so we're gonna hear from her about how she's investing what she's

doing and then we have an event coming up this Saturday that she's gonna talk about and we're gonna go through that as

well but you know we want to get to the good stuff first which is you know

how she's investing what she's doing you know doing the flips things like that so let's you know with all

dude you know ah sorry with all of that you said let's bring on Wendy Wendy how

you doing today I'm doing okay how are you doing today I'm doing great doing

great so hopefully you had a great Memorial Day I did I did that's awesome

So I'm glad that that you did and we are so just to let you know

we're streaming live to YouTube as well as our Facebook Channel deep Metro

Detroit off Market Real Estate Group okay so we have about 4 100 members in

that group so if they're not watching live they're watching on the replay so okay which will be good now for

anybody out there who has questions by all means put them in the chat we'll be able to see them put them on the screen

and we'll be able to answer them as well so put your whether you're on YouTube

or whether you're in the Facebook group put your questions in the chat as we go so

you know with that being said today Wendy you know let's do a quick

introduction of yourself and I know we have a lot in the description

but tell me a little bit about yourself and then we'll get to how you got started okay good evening everybody my name is

Wendy Roberts Barber I'm a mother a wife and I have two young men

I have a 12 year old and a 34 year old and so how I got started into real

estate I originally I started a cleaning service and I did

that probably for about I'll see about four years four or five years and that was going really great I

had something to finish usas and then I had some other residential and it was kind of very challenging at

the time to try to find and keep proper help so that I was doing residential and I had 40 homes that I was doing by

myself and I kind of got overwhelming and then I branched out to the commercial and then after

some of the Finish USA's kind of closed down I kind of branched out and I was

investing into real estate I started off was going to do a home for a daycare

center but then I was getting calls for adults so I kind of house and provide a service

for people that will special needs so that was kind of like my Niche has kind of been my Niche for the last 15 plus

years so that's kind of what I've been doing okay that's awesome thank you so

so you you really had a a a a long career with you know what sometimes it

was jotting around real estate and not directly into real estate but in business and things like that and then

you ended up getting into it so tell me a little bit about how you got into

real estate I know you just went over a little bit of it so tell me a little bit more in depth like

did you did you think you could get in real estate going in well yes because I have always probably

was all about 12 or 13. I have all winning Real Estate and one of my dreams

is to eventually own an apartment building someday and so I started working at a mortgage

company and I was a head processor it was like two different mortgage companies and then I purchased my first

property my very first property though was in Flint Michigan okay so yes I purchased that and now you

know a distance I had a great tenant at the time so that was basically a buying hole and then I started branching off

and investing here in Detroit okay so what made you start doing Flint

was it just because that's the deal that showed up at that time

my manager over the office it was a deal they came through so I decided to purchase a

property which was a great deal at the time and so actually we still have that property

we got to go up there and do some work to it but it's kind of sitting right now but that was my very first

property and then I purchased another property where I moved into and I had that property and I kind of

got caught up in the mix where they had I had like seven seven to nine people on

my title and so that was my very first property with Remco and MCA mortgage

if you've been around they were like really big back then they were really investing in Highland Park

and then they had some you know a lot of properties here from my understanding and the Brightmoor area as well

so yes okay so

you know so you purchase your your personal property and you you that was in Detroit right yes that's correct okay

and then you moved out of that and turned it into a rental or no foreign

and they still have that property to this day and so 

I sold and I moved on I bought some other properties here in the city and then I also got caught up in a mortgage

crisis which was 2003 or five I got caught up in that and then so I

kind of lost most of my property because it was underwater was that the 2008 one yes okay yes 2008 mortgage crisis okay

yes and and how many properties did you have during that time I had

eight I had eight properties with one lender I had buyers for all of

my properties but they didn't want they was like the the value was too low but I was offering each of my properties at

least about a hundred 100K and somewhere out like my primary property they end up selling for thirty thousand

dollars I was sick wow yes wow I I filed BK around in time okay trying to Savage

my credit I was paying close to ten thousand dollars a month trying to maintain my credit and save my privates

back then yeah and for anybody who doesn't know BK is bankruptcy

and you know it's a hard subject and I I gotta say

that sometimes people need a fresh start and that's why they have that okay

and you know I hate to say it but I did it myself you know I was the same way in

in 2016. okay I felt it was it was underwater and I

basically it felt like I was working for the banks I was working for the credit cards I was working for everybody and I

barely had enough to pay to even get groceries so

so yeah I ended up I ended up doing that as well declaring

bankruptcy and it it's a reset and it

gets you you're you start thinking about things a lot better

absolutely yeah you're like okay I don't ever want to go through that

absolutely very a very stressful time like my primary house and then I end up

purchasing another house trying to get that house before my credit got bad so

it was really it was a really bad time in my life you know yeah

it is a last resort by all means it's a last resort so

and you know it was it is definitely so I feel for you on that because I've

been through that you know I really do uh now with that when did

you start flipping houses so I haven't did a flip yet

which that is on the horizon that's coming up I've been looking at different places but my strategy for the

last several years has been buying whole and so again I provide services to

people with special needs and so some of the homes that I have is for them for my

seniors and some people with mental health or mental Wellness issues so I

like to provide a search for them and a nice home for them so that's my strategy at the present

time and then I also kind of then branched off into short-term rentals like the Airbnb yes

now does that uh does that do you get paid a premium for

doing that for doing the special needs and I mean is it guaranteed money like a

Section 8 or you know is it subsidized or anything like that do you go through

an agency to to be able to get all that or like how does that work

it's not subsidized however most they paid through their income

and then if they're in a licensed facility then you their income you get

an extra certain amount through Social Security and because it was like like a third party

they kind of have downsides

throughout the last I want to say like 10 years so like before like in the early 70s if you had a client you could

get us sometimes an extra two to three hundred dollars per day but now they they have to actually decreased the

amount so you basically kind of whatever the person could pay and what you're

charging but the best way kind of to do it is to kind of have a guardian for the more sake and then they'll make sure

that you get paid got it yes okay yeah because I have

heard of the say with was the substance abuse housing

they they usually have that those where those are going through an agency yes

and replace that and that's all guaranteed money through the agency itself

so you know there's also I didn't know if you it was the same same type of

thing with special needs it is but the bunny is not there like it

was I mean it's only a couple of population so yes and then if you're a non-profit though that could be very

helpful because you could get other grants and stuff that could help you you know to run your home

okay that that's awesome so you know obviously you're not a

non-profit right I am now oh you and you are now okay I am

okay so but for what advice do you have for

say other landlords that are out there do you like the Detroit Market are you

looking outside the Detroit like others are what is it about Detroit that you'd

like so much

first home homes in Southfield and I had a really nice home on Two Mile and Southfield

Road but it was I was renting the home but I definitely would like to somewhere down the line possibly get

another home in the suburbs or something like that yep

okay that's awesome yeah a lot of people a lot of my buyers they want to deal with suburbs not proper Detroit right

and I unfortunately like I understand their dilemma with that

but you know as long as I tell them as long as you got the processes in place

absolutely for the property the a good property management for the area of

Detroit that you're looking into like you're you're leaving a lot of

save money on the table there's a it's a lot of 

the higher percentage of Roi is in Detroit it is we got a lot of hidden Jewels here

and so I love Detroit born and raised some continue to invest in Detroit and as I said it's 

like I said we're leaving a lot of money on the table but it's also you know my saying is money in the hood and you know

oftentimes we overlooking that you know right and that's the thing like it's also bear

to entry you know absolutely is is a lot lower in certain areas there are

certain areas of Detroit that's they're outrageously expensive they're more expensive than suburbs well you know

yes Boston Edison is one of them you know really that's probably the

highest is okay you got four or five hundred thousand dollar houses you know six hundred thousand dollar houses in

Boston Edison oh absolutely yeah and then you know Virginia Park you're

you're still in in you know two or three three hundred thousand dollars you're at least a hundred thousand

dollars for a for a house that needs a hundred thousand dollars worth of work absolutely

so but you know the good thing is your

Roi on that because the ones in Virginia Park are probably you get a higher

return because either they're a duplex so you can get you can charge a lot more you know things like that so yeah you

can yeah but you know with that what areas of Detroit do you prefer

what areas I prefer ways

Way Seven Mile area there's a great area to invest I have invested over in

brightmore okay you know they're going to be building up soon

hopefully sometime soon and I will say you like you like bright

more huh yes as much you know yes I mean I know

a lot of investors who stay away from Brightmoor so you know I never come

across somebody who likes bright bars I'm over here now

I have another wholesaler friend of mine Taja and he has a t-shirt says

straight out of brightmore because he's from bright orange so yes I know Todd

so I think it's hilarious but most definitely I think it's you know the

bearer entry over in Brightmoor is a lot less yes but it I'm hoping the city is going

to put some money into it yeah they talking about it okay so and and that

that what I found is the key is wherever you see the city of Detroit putting money into that's where you want to go

absolutely absolutely absolutely if you go to these city meetings and you say okay next year we're going to put a

million two million dollars into this neighborhood buy it before they do that and now you're gonna get the

appreciation absolutely so and just ride the wave if you're a

Buy and Hold investor just ride that wave so that's a little tidbit by the way

yeah yeah because we had Bagley was

really up and coming yes they got they got really you know hit and then they

decided to go Detroit decided to put more money into Fitzgerald so now now Fitzgerald is

starting to come up a little bit more because of that so yeah Bagley is a great area to invest

that's what some of my homes were originally before I lost them in foreclosure and that was a great area I had my the house I was living in was

on Prairie Street I had a really nice 34 bedroom brick with a garage really

really nice yeah 600 square footage they sold it for 30

000 oh my God yeah I grew up right over by there actually so I went to Ferndale High

School I grew up at seven mile Woodward so okay or sorry no not seven eight mile

Woodward Ferndale so so I know that area actually pretty well

because yes it's a great area to invest like that's the Bagley area yes

so now what do you what do you consider

like your what's your worst deal that you've had in the past and then give you

your best deal my worst deal I had in the past

and you could even still own it now that's perfectly fine too so you know my worst deal was purchasing a

property 

my worst deal was I had a house on Drexel Street and I was renting their

property I was going to purchase a property but then they went up probably like an

extra twenty or thirty thousand dollars okay and so I walked away from that property

and then I ended up moving from there because I was renting the downstairs and upstairs for like six years and then at

the time they might have been in 2005 or six maybe and then I moved on the west side and bought another two unit which

was over on Monica and which is the next block over from Oakman so I end up saving twelve hundred

dollars because I end up buying that house you know cash and then you know and

put some work into it and then at one point before the pandemic though

that was like a really money maker I could put seven people in that home for what I do

wow yeah okay so how is that your worst deal is just buying that property or

as far as buying it it was a if that was a good deal

one of the deals I did buy was off of Seven Mile I want to sell Westbrook kind of the area down there now kind of like

Beirut I don't it kind of looked worse than the blight more or

Brightmoor area I should say so that was kind of my worst deal because the foundation issue so I

realized now because I'm more Savvy that you got to look at the foundation I

think I purchased it home for like seven hundred dollars oh wow so yes it was a great deal for us

personally but then you know it said for a while and then the foundation was bad because because

it was so cheap I should say yep I didn't get an inspection so it wasn't

really worth my while so I don't have that particular home now so that was like the worst deal okay so did you fix that up at all or

did you just get rid of it no I got rid of it got it okay

now what's your best deal my best deal yeah I would say possibly

my primary home so when I lost the homes to the

Foreclosure I end up moved in a still decent neighborhood and 

we end up paying like it was probably

we ended up getting for about twelve or fourteen thousand dollars wow okay and that was in what area

over in what area is that called like over

by a subdivision area that area okay yeah okay I mean that's a decent area it

is yeah and what is that how I mean I'm assuming

you still have that is that right yes I do I still have that home so what is that renting out right now well so

that's my primary home now so eventually okay yes oh okay mm-hmm awesome and so

that's your primary home you got it for Seven Seventeen thousand right twelve twelve thousand twelve thousand and

just imagine like paying cash for 12 12 or 14 000 now you don't really have a mortgage

and everything is going how much work did you have to put into the property

well we really don't have to put a whole lot of work into it 

we might have put it like twenty thousand wow I'm gonna tell you right now these

California people out there if you're watching this like you spend more of that more on Starbucks coffee in a year

than you do what she just paid for her primary residence so that's crazy

so yeah no it's crazy that's nuts that's honestly that's more than what

like the cost of me replacing my roof

the funny thing about it too if I kind of been in a better position I probably I damnedly could have at least purchased

four other of five other homes on that block like one of the homes next to me is like running

seven thousand wow now what time what time was this was

this during the 2008 2009 I don't know about that okay so I I understand

why then okay because you know Banks were real you know my mom bought a a

house in Hazel Park and she bought it on a foreclosure in 2009 or not on on a short sale

she paid forty five thousand dollars for it she got a mortgage for it and everything

and that house right now is probably she can easily sell that for probably 150.

oh okay yeah so and that's just her living in it so

but with that being said so you know so that's your best deal what

what would you recommend to new people coming out through all the mistakes that you've had

okay we get a lot of new people who's just looking to invest okay

whether they're out of state whether they're not whether they're in state and they're just looking okay where can I

park some money for my day job or whatever my savings otherwise it's just sitting in an accountant doing nothing

you know what would you write what would you suggest to them foreign

especially if you are coming from out of town different states you definitely

should find somebody here that you can trust I'm oftentimes people coming from out of town they trust some of these

contractors and the contractor is have doing what they say they're going to do you definitely need to have somebody

check up on the contractors do not send any money down here unless you know they're doing what they're

doing supposed to be doing because a lot of contractors or investors have got scammed that way

a matter of fact we have an office in Southfield and if anybody want to hear listening from out of town and need some

assistance I'm one of the ones that they call boots on the ground so you definitely can call

our office and we kind of can help assist with that if you want somebody that you could trust and go by and check

to make sure the contract is doing what they say they're going to be doing and not if you gave them x y z and

they're doing it's supposed to be doing quality work you definitely want to make sure you have somebody to check behind them

this is Tracy Belinda she said that's

exactly what she's looking for boots on the ground and honestly like I've spoken with you before Tracy you got to build

your team no matter what and she just offered you know she has a place in

Southfield that she can be your boots on the ground so you can do that you can contact her contact me by all means

we'll we'll ask you at the end of the show how people can contact you so stick around to the end of the

show and we'll we'll have that but yeah that's awesome so you do boots on the ground for people out of

state I do I love what I do I have a passion

for it I'm kind of like the project manager on a land bank house

that we've been working on and so and even my last project that I worked on you have to have somebody that's kind

of that's very knowledgeable and going to make sure go in to check to make sure the contracts are doing they supposed to

be doing and you know being fair and it's when we're situation for everybody

most definitely and she just says she's coming to Detroit in July Tracy get a

hold of one of us when you get here I'm happy to you know we'll have be happy to take you out to lunch take you out to

dinner whatever it is and see where we can help you out so both of us either of us it's up to

you so happy to meet you and kind of go from there but now with that that's

really cool that you like to do that for people I'm kind of the same way but I

I strictly wholesale at the moment so I'm wholesaling with I get a lot of

properties or I work with a lot of people that get a lot of properties in Detroit and I come across a lot of them

and I do know the areas in Detroit and and look at the different prices and

things like that usually I try not to over price them or if I do post them they may be iffy like they may be on the

on the borderline but we gotta try it we gotta try to squeeze every dollar we can out of them so you know unfortunately

but they still got to be a good deal no matter what no matter what you price it at

always still try to run your numbers the way you want to run your numbers that's what I tell all my buyers no matter what

okay and I'll even teach you how to run the numbers no problem

you know I'll teach them how to run the numbers now and if it doesn't work for

your because every investor is different on the ROI that they want to get so I

can't tell an investor like for instance if you're the investor I can't tell you what Roi do you need

you know right right so because you might be happy with 10 percent

and you might be you're like oh no for the risk in Detroit I need at least 18.

you know so who knows right right that's why I

always ask my my investors what what is your formula what are you looking for

I did some wholesaling yeah yeah but I guess it really stick

with it it was I guess it kind of was moving kind of slow in a sense but yes okay yes it's moving kind of

slow wholesalers usually move pretty fast maybe it was some of the deals and the

person I was working with you know maybe well anytime anytime you come across a deal

that you want to possibly wholesale I'm always open to JV with people okay

I'm happy to work with you I work I work with anybody but I I give my open and

honest opinion as long as you take my honest opinion then we're good so that's good that's nice to know

yeah so tell me so before we kind of move on to what you're doing now tell me

a little bit about what's going on this Saturday I'm glad that you asked

we have in our first expo here and we we're going to be going to

different cities the first one was in Cleveland okay and so we're gonna be doing one

here this Saturday coming up June the Third at 10 o'clock 10 to 3 30 at the

DoubleTree downtown and we got some great speakers

and people that's gonna be on a panel flying in is just going to be a great event and if you're a contractor or a

realtor or you think about getting to real estate you definitely want to be there

it's just going to be a great event like I said we got a lot of great people on our panel I don't know if you

can see this yes and so what I'm also gonna do is I'm

going to present my screen

and I would love for people to purchase their tickets still have some

going fast yes on the network

and when you want to grow your business you definitely need to do some networking thank you

yeah so this is our Facebook page Metro Detroit off-market Real Estate Group

okay and I have pinned it at the top all right so the Man Randy you're the man

this is the post here you're gonna click on this link but we see here this is our

Expo day all right yeah June 3rd from 10 a.m to to 3 30. all right now I'm gonna

tell you all these people here are very very I I've looked into them they're

they have their own right and they're going to be speakers my my little pictures over here but hey

um I'm not going to be speaking but I believe I'm gonna they have me set up to teach a beginning wholesaling class yes

so if you come and join you're more than welcome to do we're doing a a beginning

wholesaling class and anybody who does do my beginning wholesaling class I'm

giving a and especially for beginner wholesaling um I'm actually going to give away a

couple contracts that I have I don't normally hand out my contracts all right so but I'm happy for people who take my

class I'm I'm gonna hand out my contracts all right

um so with that being said we have you're gonna click on the link here all

right and I gotta

send

all right there we go so this is the website you're going to come into

and you're going to go to purchase now and there's the free option right here all right now with the first hundred

people this will go away if it's not there okay this is how you

get the free ticket if it's not there unfortunately you missed out I'm sorry

but then you have general admission where for two people it's 129 which I

still think is a deal absolutely two people you're you're it's 129 for two people to to for all day to

see all these people and by all means I'm gonna you know that's awesome so you

know with that being said that's kind of where I would 

I would look into that and see you know if you can make it great that's

what I would do you know you know I really really want to see

everybody who is watching this come as much as possible all right 

let's see and lyric he said to excel groups

Wendy Roberts and our office there in Southfield so he put the link in

in the Facebook group which thank you what we'll do is I'll go ahead and

copy that give me one second here

I'm going to copy that and I'm going to put it in the

oh let's see sometimes it works and sometimes it

doesn't so

there we go oh that's all right and comment all right either way well if

if you have any issues in our on our YouTube please give us a a shout go

to my Facebook group and check it out so so that we can get you there

the I'm also having it in the description as well and kind of go

from there all right so check everything out there and kind of go for you know I'm gonna be there I'm gonna cover the

event I'm still trying to get where I can have somebody follow me around versus me

just doing it on my phone aha you know try to be a little bit better at it

but everybody here who watches the show who knows that I'm the one one-man show so we'll see how that goes now

so tell me about what you're doing now okay and

and you know where are you at right now in your investing career and what are

you looking for right now I've been setting up

short-term rentals and helping people set up group homes and so that's what I've been doing

and again I enjoy doing that as well I love decorating

and just you know getting a house and you know putting some love in it from

start to the end and so that's been very rewarding to

me and so I'm you know excited about some of the projects that I have that's going to be coming up and just and it also is putting on

events that we're doing that's awesome so you guys are going to

be doing more events you know just in different cities yes like that right yes

okay awesome now is this going to be an annual thing a yearly thing yes that's

the plan yes all right so next year we're gonna get a bigger a a much more advanced

on you know on it so we can advertise it a little bit more absolutely

all right so with that how can people here help

you in your real estate going forward

well they first can go to the site today and the rest of the week and purchase

the rest of the tickets we might still have some free ones but I'm not really sure

but they could go on a site and when I tell you just some of the events I've been to with this many people on stage

and their knowledge you're not going to be able to bring in two people for a hundred and some dollars

you know you're just not and you know everybody like you said on this panel in their own right you know they could command a higher price so again whoever's

watching listening you definitely want to get your ticket again if you're a contractor a realtor

you want to start in real estate you definitely want to put yourself in a room and that's that's how you grow your

business meeting people and networking and so it's going to be a great venue

and as you can see the lineup is is simply amazing and so I'm super excited

that we have it in our you know here this is my city and I'm just looking forward to the people that's you know

coming out looking forward you know to meeting you as well

thank you just look inside you know for our event that's coming up June the Third

so June the third that's awesome now what about real estate deals now are you

currently buying and real buying your real estate deals I'm currently buying right now but I if

the right deal come by and yes we will be buying some deals but right now just trying to some of the

ones we got a couple that's sitting just trying to repair those you know

sometimes the population that I service before depending on the population I've had

some put holes in the wall and stuff so just doing some upgrading I should say well I will say this if you go into the

Facebook group and if you need a contractor or anything like that by all means ask that that's the reason I made

the Facebook group honestly is for people to ask for what they want okay and you know there's definitely

contractors in there there's there's decent contractors in there so yeah that's the keyword decent yes yes there

are so you know check them out you know by all means you know see how they are

and you know I always tell people this when you work with a contractor try them out on small jobs first

absolutely how they work and then work your way up you know for in each

individual thing you know and kind of go from there so because you don't want to hand them a

whole full a full Renault and now you're into them for fifteen thousand dollars

and they get halfway through the project and now they don't want to finish you know

about that so you know and then they walk off with their money because what

they did is they they took your money and paid the last job that they had to

finish the last job and now they're planning if they if they're out gonna

finish your job they're planning to take the money from the next job rob Peter and pay Paul you know

and that's not a good way to run a business by any means so absolutely it's

not and we got to level up and we're going to be putting on other monthly events networking events here in the

city we're going to be putting on events like that and just one of the things we're going to be talking about is contractors showing up in excellence and

stuff because often some of the contractors they are Rob and Peter pay Paul and they're not really taking care

of business and we want to teach them those type of things yeah most

definitely and the thing is is that I think for the past couple years we've had where contractors can get away with

anything because we had we had a shortage of contractors oh absolutely and I think we're come to the a

medium point right now where at least we got we got contractors but now the

work's dying down so yes so it's coming becoming a little bit more competitive you know or it's

coming becoming a lot less competitive let me replace it and rephrase that so now

I really want to see everybody there now what we're going to try to do I can't guarantee you we do now every day

this week we're gonna try to bring on another speaker so we're gonna have I

know I only do this every other week okay but going forward every day if if I

can get somebody that is it's big in if I can get one of the speakers to come on with me

every night we're gonna do a another alive and try to go from there and and

that way you get an idea of what's happening and what you're gonna get on Saturday so I honestly think that

everybody who's here needs to show up if you're watching this

you know please do show up so that we can you know so that we can represent

Detroit and you can learn in the process absolutely

awesome so with that being said any closing remarks that you want to do

before before we head on out I would just like to say that we do have an office in a to excel office in

Southfield Michigan and like you said that everybody that's watching and that's going to watch the replay you

definitely need to be at our event this Saturday June 3rd from 10 to 3 30 and I

hope to see everybody that's on you that's watching and going to watch the replay most definitely so check it out June 3rd

you know get your tickets and we can kind of go from there I'm

really happy oh one thing I wanted to ask what do you what is your plans for the future okay what is your plans for

your real estate future my plans is to purchase some more property here in

the city and maybe go to other states and possibly purchasing property and 

working with the youth to help them to put some of the homes together

so that's what I would like to do I'll be doing that soon okay and you know how can if people want

to help you or want to get in contact with you how can people get in contact with you

well they could call me at two for eight two five zero three five three three

that's two four eight two five zero three five three three

sweet alright so you know hopefully you don't get

slammed with a bunch of calls but you know that's great so we can anybody who

wants to help her out in the future by all means contact her it sounds like you're doing a really

good thing part of the community as far as bringing up group homes and things

like that you know honestly it's it you know you still gotta make a living at the end

of it right you know absolutely I have one more thing too Randy I also want to say that 

I do a lot in the community we do gift bags for Mother's Day you

know take them to the shelters we want to do again for Father's Day so somewhere down online we are going

to be needing some assistance with that and we do still have room for some

vendors at the event that's coming up June the 3rd so if anybody is watching and want to be a vendor

please reach out the Rick posted the other number or you could call the 248 number we

still have some space available for that again if you're watching this and you

enter real estate you definitely want to be there awesome and just just so if you're

watching this you know the number that she gave is is a great number to

reach also the one that Rick Post in the chats which is

866-955-9973 again 866-955

-9973 extension two all right so

you know check them out you know it looks like great people to to work with and and you know see what we can do

you know now how is the event going to be structured is it going to be 

different times different people speaking and there's going to be workshops going on at the same time or

anything like that yes so it is going to be structure in the morning I don't have like the the 

the layout but it is going to be structured people going to be speaking you know

one person out there other than it is going to be some workshops okay awesome and then uh actually sorry

the the number is 866-955-5573

uh not the other one it's 866-955-5573 extension tube so

so yeah hopefully the you know we got the workshops they got people speaking

things like that you know I'm gonna try to You Know cover that as much as

possible and kind of go from there now Wendy what's your number again

two four eight two five zero three five three three

all right oh hold on

two four eight two five zero three five three three five three three there we go

three five okay yes so this is her number here two

four eight two five zero three five three three all right I'm holding it

here on the screen and anybody who wants to contact Wendy go ahead and do that

and go from there all right now I'm happy this is probably

this is gonna be a shorter one than we normally do but since we're gonna do more than one this week I'm I'm happy to

do that is there anything else you want to cover that'll be it I'll be sending you a text

message you know with other people that we discuss and so hopefully they're confirm and get you the stuff that they

needed to forward between ASAP yes and thank you it was great no problem thank

you Wendy so what I'm gonna do is I'm gonna bring you down just stay here I'll talk to you a little bit after all right okay

thank you thanks everybody all right awesome everyone thank you for

showing up thank you for having me thank you for joining us on this great Tuesday

it's normally we do it on a Monday but you know because of holidays we gotta still spend time with the family so 

with that being said hopefully everyone has a great night you know enjoy this

nice hot weather that we have here in Michigan and come to our event come to the the event on June 3rd I will be

there I'll be covering it as much as possible and it's going to be a great way have a blast as you guys know I'm an

open book okay so I will be I I you asked me for advice I'm going to be open

and honest with you all right you want to work with me on a deal by all means this is my number right here

right here at the bottom there we go right there at the bottom give me a call

don't be shy if I don't answer leave me a message shoot me a text message we'll

talk all right now until the next time let's all do deals together

have a great day

Real Estate Talk w/ Randy Stedwell Episode #12 | Syed Mohsin CEO of Real Estate Sales Machine →

Hey Everyone On Episode #12 We will be Talking with Syed Mohsin Founder and CEO of Real Estate Sales Machine. We will talk about how he got started and his secret to success in real estate. We will also get his take on the state of the market. Come join us this will be a great one to go over with if you are a investor and anyone looking at real estate right now. If you are joining LIVE then put your questions in the comments and we will answer them LIVE.

Syed Mohsin is the founder and CEO of Real Estate Sales Machine, nicknamed the “Success Broker”, he's generated over 50 Million in sales before turning 30 years old.

Associate broker & Owner of 2 teams at world's fastest growing brokerage, Starting from scratch in 2014, Syed made his first million in GCI in just 3 short years. Over 150,000+ leads and clients have joined our business database

Syed has one of the best track records in this industry and has created 5+ 7-Figures Brokerage and 100's of 6-Figures Agents.

http://thesuccessbroker.co

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free Facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

Foreign

and your your origin story like how did you get into is that he made an age joke the last time we were I'm

gonna I'm gonna use that 

hey everybody out there YouTube and Facebook as well I just wanted to we're

going to give this another shot here with the successful broker success broker I Syed he is a dominant real

estate agent and I will say this he is an awesome guy

you know so we're gonna get to know him a little bit more we're gonna know how he got started where he's at

and you know hey if we can do anything to help him we'll do it all right so 

you know so we'll start off the the podcast I know this is a odd day you

know things happen and and we just gotta gotta go with the flow right now all right all right so let's bring on Saeed

how you doing Syed hey what's up brother how are you bro I'm doing all right so you know first off you know

we'll address last Monday you had it I'm a family emergency

unfortunately it was a breakdown a little bit of communication it's all good I know how hard that is I you know

you know we'll start fresh and kind of go from there so I appreciate that I

appreciate for you for getting me back on here and again I apology apologies mix up on the calendar and

everything but I'm glad to be here awesome so trust me I know how how

important family is right now so and if anybody hasn't been on our Facebook group it's Metro Detroit off-market Real

Estate Group please go ahead and join I you know we're we're streaming right

now to the Facebook group as well as to my YouTube channel all right so

so with that being said I so tell me a little first tell me a little bit about you

and you know what you do and then we'll start off with how you got started

sure yeah so right now I'm a real estate broker in Michigan in the

state of Michigan and real estate coach it's been about three years I've been coaching and training agents 

started off starting my team back in end of about 2020 beginning of 2021 so right

now I'm running a team a real estate team here in Michigan completely remotely I run my this is my this is

my office this is my office yeah yeah we I have about five I

think we are at six agents in my team and about 17 agents in my downline

another 12 agents in my coaching program so all together 30 35-ish agents

that I train and coach on a weekly basis on a daily basis on the weekdays we do morning calls we do prospects the role

play together but we're we're serving as far as real estate goals we are serving Wayne County Macomb County and

Oakland County majority of our businesses here we do have agent in what county and Ann Arbor Ypsilanti area 

we are our brokerage is in all 50 states so we also do transactions other states

where we resort to agents in our Network so yeah okay

that's awesome so with that being said like

you know obviously you know that I'm a wholesaler okay so we talk all about

real estate not just wholesaling here all right so tell me how can you know

what I I'll save this for later so no no I'll save this for later because it's going to be a good good good one later

on so all right so tell me how you got started all right

okay so let's start so I've been in this country about 17 years now maybe a little bit okay in years

when I first came in I went straight into high school senior senior year high

school I went to Pershing High School in Detroit graduated in like six or

seven months and I went to Wayne State engineering school I was in engineering school for two and a half

year-ish and I read the book Rich Dad Poor Dad it's actually on my shelf

right here I read the book and I was like I'm

doing it all wrong right meaning the pattern I'm taking I was working full-time as a server in Birmingham

at a restaurant to be able to afford school to be able to afford parking if

you know Wayne State areas I don't know how it is now but back then this was 09 yes and at this during this

time you know Market was obviously bad like real estate Market was bad but

economy all itself was bad and I started seeing you know Engineers who were laid

off as our teacher as our professors right and they're like they're kind of

like you know being negative and as far as the engineering field when they're in school and I'm reading this book and my

dad actually bought this book in a garage sale and he just brought it in

like all the stuff he bought in garage sale I'm like what is that reach that port at and I never heard of that with

this book before and I'm not a book guy well I used to yeah okay but I'm like

okay I'll read it I read one chapter I'm like this is interesting like you know this talks about you know all the

four quadrants and I'm like okay I need to read more and I read read I'm like okay the path that I'm taking

it's pretty much what he talks about that you don't want to take right I'm like okay figure something out and I

always wanted to do business I always wanted to do something that allows me to create the Financial

Freedom right coming into America I already had that cultural shock because we grew up watching Disney right we okay

movies and so I had a complete different picture of America and coming into

America coming to Detroit moving to Detroit first thing I had like a shot like I was like this is not what I so

real quick real quick I got a question you brought up Disney all right and hopefully Disney doesn't sue me for

saying that you know whatever but anyways but I gotta and you said you

grew up watching Disney did you think high schools here in America were going to be like

High School Musical that's the picture I have tonight that's the picture I have

in mind definitely okay okay Disney cartoons even like Disney movies Disney cartoons yeah it had it we it's not that

I was racist right I'm I'm no of course right but it was like the high school

that I went purging High School right that was literally one white person one or two white person in the school right

so that was a shock my English wasn't so good but still I I was educated in an

English medium school so I knew how to speak but in a English accent right so

mad American accent so but if an American accent versus Detroit

accent right like you you get the picture right I couldn't understand anyone in the school because they're

talking the ghetto English right so that in itself was a shock for me so I knew

that I had to do something I had to do something different to radically change my dad my parents were working in the

factories in production when they came here to be able to afford the lifestyle to be able to rent to be able to do all

that so 09 comes I decide that you know what this I'm not gonna take this path

because I'm working full-time that math doesn't make any sense to me right like I'm working full-time I have the the

partial financial aid it's still not really making sense and if I'm done at

school there is no jobs because of Victory companies where I was my dream job right we're not doing so good

and eventually after I dropped out of school they filed bankruptcy so at that time I was like yes like this was the

right decision about anyway I go I go into 

I started an online business and this was when I was in school already after reading the book I started like okay

what can I do what can how what can I do to make money and at the time on making

money online was a new thing right so I'm like okay what is the fastest way so I started this hustle where I would go

on Craigslist every time a new phone would come out so let's just say at that time I believe it was like iPhone 3GS or

3G so I didn't have a new phone would come out I would go lowball all the

previous version so that someone's trying to sell their phone for 300 I would say I'll give you 200 in an hour

I'll come pick it up right now yeah yeah and I would go buy it and I would put it on eBay eBay would remote like pretty

pretty popular back then and Amazon didn't even exist so yeah eventually

like one year doing that I I built up some equity and built up some Capital that we started doing was going to

outlet stores in in the malls and go every outlet store has a semi-annual

sale they would sell their products whether it's you know health and beauty products

or clothing line for 85 75 off and we would buy that stuff and we would hold

it for about a month two months wait for people whoever bought it at that price initially we didn't have a lot of

capital we didn't we couldn't afford to hold it we would sell it right away on eBay but anyway long story short I did

that for four years I built up enough Capital to like start looking into a

real estate and this was 2012 around 2012 between 2012 and 2014.

I've flipped six houses I bought you know foreclosure back then

foreclosure was everywhere every single property listed on the market was foreclosure so first deal I did was I

bought a house for twelve thousand dollars this wasn't quite near Hamtramck next door to the house that we used

to live in we moved to Warren from Detroit in 2011 so we used to live in Detroit near Hamtramck we used to own a

house so next door house was being sold foreclosure one of the neighbors let told me like hey there's a house for

sale I know you're looking into a real estate look at this right so I I go

you know the whole thing bidding thing and it was just mark it was just trying about to start right by 2012. so I

applied for 12 500 I believe and within like couple a couple of hours of my

closing I sold it for 23 000. and I was like I need to like pivot I need to like

10 Take My Equity out of like the business that I was in the online business at some point we had like close

to five six hundred thousand dollars in in the inventory so I'm

like okay at some and at the time also was what was getting difficult was we Diversified into Amazon because Amazon

was just coming up this was yeah and Amazon we were doing good on Amazon

better than eBay but Amazon started shutting down small guys like us who

were selling brand products more than the brand itself so Victoria Secrets

Bed Bath and Body they didn't they used to sell their stuff on their website and they didn't sell it on Amazon right but

we were selling Victoria's Secret Bed Bath and Body Aeropostale American Eagle more than those Brands itself but Amazon

was trying to grow so they wanted those companies to come to their site but yeah

those companies can come if we are already established with their brand and right so yeah

at some point we had like 100 accounts 100 accounts okay funny story The Way We

built that Empire we would go to Detroit and we would find crackheads and

we would pay them twenty dollars for their ID and Social Security and open in

account I don't know it's like it's legal right oh my God we're doing this with consent but anyway I kind of got

out of that business to get into real estate investment good decision good decision I changed my

life and that just changed my life saved my life in a way there are certain parts of it I'm gonna only release of my story

in my book that I'm going to publish hopefully pretty soon but it

saved my life I would say not change my life saved my life real estate definitely did because I'm

with the business I was going on a completely different route because of the money that you know you get exposed

to more money than you ever dreamed of you start doing stuff and you start trying things out right so anyway yeah

that's how I got into real estate so after doing like six deals I started

reading the closing statements I started started learning how to read the paperwork right before that I was like

right here I started seeing how much the real estate agent was making and I'm like

I'm a smart guy by the way I dropped out of school not because I was bad in school I was 3.94 GPA like I I'm really

good at math and yeah so I'm like to me it's like automatically like this is more profit if I could just get my

license even though I didn't take into consideration all the work that's needed to be an agent and to Market a property

I was just like oh three thousand dollars that's my money I'm paying you right so I I'm like right I got my

license so got my license first try I got it and fast forward to 2015 I get

married and it's like it's more responsibility now and I'm more grounded and I can't just make drastic decisions

like I was doing before because I was single so and then I had to go to real estate sales and all this that's

how really I got into real estate and it's been so 2014 until now it's

about nine years into real estate itself and real estate is a game changer if

anyone's out there there it's not happy with where you are in life right it's not you're happy with

the income that you have right try out real estate but it's not real estate

though to me the way I look at it is just a vehicle right it's just

I want to go back before you continue before we get too far away I want to say something here is that you know you said

something you said you know you got married in 2015. first off that's the year I got married as well

awesome now the thing is is that when you get married I've noticed this in a

man it goes from I even if you're in gay you go from bachelor

lifestyle mindset everything to yeah now I can provide yeah and we're gonna have

a family and we're gonna I can I gotta do whatever I gotta do to make things happen and basically it puts a fire up

your ass yeah you know I did it did it do that for you oh yeah for sure it

definitely did and my wife I'm thankful for her being like that she's a different animal like she's not animals

she's she's a different different personality different like mindset as far as like building the future

right and I I think differently like I'm a Heidi person analogy I take like rest

that don't make any sense right like buying to Mastermind like 25 000 dump it

right you stick to a slow down right so anyway like at the time when I got

married I didn't have anything going because I had exited out of the online business I was doing these like deals

here and there but it was it's not like it's nothing in concrete right so right

I was renting for the first time right I was moved out of my parents house  so

when I was living in my parents house kind of like chilling right like you don't have nothing going on you have no bills right you guys just gotta pay for

yep gas and insurance and that's it you know and you're just I was kind of all

over the place right I had no you're lucky you're lucky in that aspect what I

had my when my my parents said oh you move out or and you come back in like

you got to pay rent

are old school and they're a little con conservative where yeah the way the way they look at it is that if they made it

too hard for me to live with them then I'm just gonna go out and do all this other crazy stuff right so it's kind of

like a protection for them of course right but I was contributing but it wasn't no like sad expectations it was

just like a few hundred dollars here and there right yeah but when I got married it was renting for the first

time I got bills right now I got like like we gotta go out once a week and

like not that we have to but we wanted to right we wanted to live like a little bit of luxury right so

that's a mindset thing I mean you don't want to be stuck in the house and that

that's a poor mindset no offense to anybody who's doing that you know if you're doing that intentionally great

for you um as long as you know that there's like a light at the end of the tunnel because

if you don't know there's a light at the end of the tunnel and you just keep living that way you're going to go crazy

and I I know this from experience so yeah I think it's for a lot of people

they just discount they just get caught up in the now right they they got

these wheels they got these dads they got these you know problems that they have now so they settle for less at the

survival level and try to survive and they just don't ever build that dream

life right so that's who I was before I got married I didn't have a why I really didn't know where did I want to get to

right yeah aspirations it's all it was all about just making money right it was

showing up right we went off more than I was making money by the way right yeah but when you once you and even when I

got married it was just like that was the kind of like survival level but eventually one two three years into real

estate then I realized like okay I my first year in real estate 2014 I wasn't

married so I did like three or four deals 

second year that was the year I got married I did like three or four

deals like 2015 2016. I did 35 deals so that's seven I did 65 deals 2018 I did

like 70 something deals 2019 I did like 80 something deals so then 20 2020 I

did like the highest I ever did the covid year 300 000 in GCI and and in the

rest is history and it all started from setting that dream life

like what okay I have made a mistake once I got married I realized like I should have like

figured this thing out like I beat myself like to the bottom right I was like yeah sort of had it figured out

like why did I put her into this situation and now I gotta figure it out what is that dream like what do I want

for myself right I don't want to be renting right I don't want to be like renting a 750 one bedroom apartment

and like we got like we gotta go into the basement dungeon to do our laundry

or like you know all the and we were struggling to even do that right that wasn't yeah that's how we wanted right

but right yeah why is what fires a person up and that's what I teach my

coaching  agents right now I'm agents that I coach that come into my team is that first

thing very first thing is you need to set that mindset right right yeah the right mindset you need to have the right

habits you need to have a dream life mapped out for yourself because that

would be that motivating factor for you to go out there and do it if you don't have that everything is hard right

making calls is hard and getting clients is hard and getting for properties on the contract is hard and interest rates

are high and no inventory right but if you have that dream life and you have the aspiration everything else is just

easy everything is just part of the process everything is just you know you it's just the car right just like oh I

gotta go to if you were best if you're in your mind your destination is the mind the car could break down you'll

figure out how to get there it'll leave the car behind and go there right yes

so no 100 I I really agree with that the why is important okay the why in any

business sense is important you know your family doing all that

ever that that's our why you know now everyone could have a different why your why could be you a certain lifestyle you

know things like that so you know I I challenge anybody who's listening to

this ask yourself what is your why okay what is the reason you get up every

morning to go to work and to make money and you know to strive every day to be

just one percent better because that's what we need to be doing we need to make we need to be one

percent better every day not we don't need to make huge jumps all it takes is

one percent one percent all right and even Pro tip Pro tip here with the why is that sure start off with your why

with your why right maybe not yeah you know I want to have this luxury lifestyle whatever it is right but once

you have attained that or at some level you need to upgrade your wife so I upgrade my why every year right oh yeah

and you need to upgrade the why to it has to be about other people rather than

you there has to be about other people people that you want to serve people that you want people that are around you

your family members your friends that's the true why that would last right other anything else that if it's just about

you you will attain it very fast and you're gonna get bored and you're gonna get confused and you're gonna be lost

about other people that's what I found through my journey of this last eight nine years is that if it's not

about other people you will very fast even if it is just for you it's kind of

like selfish right and sometimes you just lose their aspiration to just have it for you right but if it's to give you

know retire your parents and give the best life to your kids and your wife and you know for me my wife is just even

beyond my family members is beyond you know it's it's two people that I want to

serve the all the real estate agents out there all the people that are in the real estate industry that are struggling

to be successful my why is them right so wake up every day and do it for them and

some days you'll be honest right like you won't feel like doing it right you want

I mean I feel like coming to this on this call this morning but I'm doing it because I want to

impact those lives there are you know people that are in your community like let them know that hey it is possible if

you just put your mind to it but you need to draw your dream life right you

need to map out most definitely so so real so the thing is is that all right

so we got the whys everyone needs to figure out their why and then you need to constantly upgrade it that's kind of

the the gist we get out of that so I do that every year with my goals and and everything like that so that

that helps me as well you know now as far as your how

did you become a broker versus just an agent oh yeah so so I never

of our marriage I my wife had this like okay I'm gonna write this down right so

I one time told her I will never be a broker I'll never never be a broker

because of like how I how comfortable I was with my production and yeah I didn't

need to right so I didn't be a broker for seven years I've been a broker for two

years now so seven years into real estate I could have been a broker after three years I qualified you need you

need like six transactions a year right so I in my third year I did 30 45 46

transactions so I could have been a broker right but I did because I'm like what's the point it's more responsibility it's more liability

I don't wanna I don't wanna teach people right yeah I do what I do right so 

but end of 2020 I maxed myself out I was working some

days majority of 2020 even though it was covered we couldn't get out of the house I I worked like 20 hours a day 20 hours

a day and seven days a week I would have worked eight days if someone gave me an extra day right yeah and and I maxed

myself out at that point it's like there is nothing more I could give like I was literally sleeping for three and a half

four hours a day I would go to sleep shutting my laptop wake up turn on my

laptop right literally and had everything right so there is no way I could do more I was I had a virtual

assistant she was my prior to 2020 my wife was my assistant and we had our

for our son in 2019 so once we had our son she couldn't be my assistant anymore

so I had a transaction coordinator and I had  a virtual assistant that was

doing my call like taking in calls and doing my schedules and kind of like an admin but I couldn't like as a

single agent I couldn't do more right so I'm like okay I could I could do more

business for sure there was more by 2020 I had to build a database of 100 000

people so I'm really big into online dates and all of majority like 90 90

of our business is generated to online and you know it has changed over the

like since 2020 I kind of shifted things I started focusing on okay all these deals that we closed by now we close

close to a thousand transactions I'm like all these deals that be closed we have done nothing to build the

relationship with those people we're just going from deal to deal to deal new people people know people and they were

returned but no intentional systems around like getting returned business right anyway I I looked at it I'm

like the opportunity is huge I could do double the business that I did in 2020

if I had the capacity so I decided to increase my capacity I hired a call 

to build teams and they kind of gave me an option three options number one

you'll build a team by adding and slowly by a showing assistant

right and and kind of Outsource your showing that you Outsource your tasks

number two you step out of the production halfway you hire Buyer Agents

you hire listing agents and you start building a team but you're still in productive and number three is you step

away from production all the way and you start building a team and with the first

option is the slowest growth second option it was like mid growth that I should have went with the second option

but I went with the third options like the fastest growth I'm like okay I have the opportunities it's only a matter of

setting up this theme so I decided to start the team one year into do like

build like in the first three months I recruited like 16 agents like I went like all in but through that process

I realized like it takes a lot more than just like having opportunities you gotta train these agents you got to coach

these agents I'm having with agents that see opportunities with me and I keep

coming across people just saying are you a broker right and I'm like

I'm not a broker but I probably sold more houses than your broker right so initially I got I got licensed as a

broker just so that I get this get rid of this conversation whenever you're broken like yes I'm a broker from the

beginning of the conversation right but eventually not by now like now that we are switched over to exp now there's a

lot more benefits that I see being a broker than just the conversational benefit honestly like okay an agent in

real estate a real estate agent has the same opportunity if you're in exp you have the same opportunity as a broker

open up an office the conversational benefits but with my vision now I want

to you know help 1 000 agents be just like me or achieve the goals that I

have achieved right so to do that I need to operate at the

highest level possible in the real estate sales industry and that's that's pretty much what why I'm a broker and

not an agent well that's awesome you know you're doing it to help people you're doing it

to help people now obviously they have splits and everything in it being an

agent versus being a broker when you became a broker did that help

with the splits like brokerage I was with before yeah yeah it wasn't a lot of benefit

with exp there is no benefit there is the same okay it's a model where exp

Realty is a model it's a cloud-based brokerage yeah we're in all 50 states we are in 23 countries it's a model

designed to kind of eliminate that barrier and create a playing field for

everyone right yeah the broker the other benefit is you could have your own office you could open up an office

without approval right like you don't have to get another broker to kind of sponsor your office and all of that 

but the splits are saying it's the same it's same as okay yeah okay awesome I so

it's and you said you've built how many teams oh yeah so I have my personal team

right yeah which I actually broke in the middle when I left my previous broker I had 16 agents in my team 

when I decided to leave the other brokerage and let go of all the ages I broke the team I was like there is no more team just to see like who was in

the team because of they saw a benefit with me and I was leaving so I didn't want to make it oh you are in the team

so you have to leave with me I'm like whoever bought voluntary comes they come and also another thing was I kind of I

was no starting the team so I kind of recruited a lot of people that were not really fit to be in my culture right

like just in it for money they saw you know oh this guy has so much opportunities I'm gonna go join his team

and I'm gonna just get rich overnight right but they didn't have the work ethic so I had to kind of break the team

redo the team so I rebranded the team when I came to exp I partnered 

with another team this was 2022 where I went and I'm silent partner I

went and set up their generation systems they're recruiting and retaining system basically training and coaching system

I'm also in the process of talking to a couple a couple of other teams so moving forward my model pretty much is

like I'm I trained I've obviously run my local team I'll train and Coach agents who are nationally or locally

who are you know who want who see the value in my training and coaching and want to join into exp

sponsored by me they would get access to all of my training I would partner up with teams that are

struggling that don't have the systems don't have don't know how to grow don't know how to scale so yeah so that 

and probably in the process of partnering up with two other teams but we'll see how that goes we'll see how

far I can go with Partnerships and mergers yeah yeah and I think the thing

is is that Partnerships and I've had to learn this on my own because I started with a partnership and Partnerships are

good when you have open communication about the roles okay but not only that

but updated communication with the roles so in the beginning I'm doing x y z as

those XYZ and you're doing ABC okay and and then as Xyz become goes

from this much of the the tasks okay so 50 of the task to now 10 of the tasks

okay now we need to reevaluate you're right you're exactly right you have you

have experience in a partnership for sure I I do because that's exactly what happened with my partnership is I I was

doing you know as our tasks went up you know I was doing 50 mine ended up being

more than 50 because I Was Here Local he was not and his task went down so it was

it was crazy and whenever I tried to discuss it with them you know it was

kind of shot down so I eventually had to go out on my own yeah and you know I'm

like I'm sorry but you know what he kept the I gave him all the whole business

I literally just left the business I said you have the website you have the the SEO that we put into it you have you

know and kind of go from there so yeah yeah so so this is something I learned

probably last four years three years is that from Tony Robbins business

Mastery and he talks about Partnerships and relationships is that it comes down to two things okay with any

relationships with any Partnerships it's that mutual respect and mutual trust right yes and mutual respect and mutual

trust comes from mutual interest being met right so as soon as you have mutual

interest not being met so one party might have their interests being met which was your partner who had it all

yeah you're doing everything right I'm still a 50 partner and you were not

happy with that your interest was not being met we're putting in more time what what happened is that Mutual trust

and respect will start get being affected so as soon as Mutual trust and respect gets attacked the relationship

starts deteriorating right our heart starts deteriorating no yeah and what's funny is that

everybody's like well maybe he put up the money in the beginning and I'm like no actually we did 50 50 on the money

you know on all the marketing then we got it to a point where the business was taken or taking care of itself

you know and we are hiring virtual assistants to and Well turns out the

virtual assistance wasn't taking my job it was taking most of his yeah you know so it was it was taking a bit like that

much of mine you know of my time so yeah for Partnerships still work you've got

to be fluent you got to have open communication you gotta understand you gotta have this conversation about the

mutual respect and Trust right and the mutual interest being met like hey for us to work for a long term we're not

just you know you gotta be clear like we're not just doing it for now we're gonna we're gonna do it for you know 10

years five years whatever it is right you got to set that goal you gotta set that destination and throughout this

journey we gotta always talk about this mutual interest right yeah our mutual interest today is this but it might

change one year from now and we gotta talk about it and get on the same page about it and sure it it might not work

like at certain point our mutual interest may not be the same anymore and we might it might not be possible for us

to meet in the middle right and we will you know you've got to talk about how you're going to exit to the partnership

yeah and you're actually going going into a partnership the big mistake that I did was

I didn't talk about that in the beginning yeah and you have to have those conversations hey what if one of

us decides to leave how is it gonna happen how is it gonna happen not saying that we're planning is is we're not

planning for an exit right now we're just how would that work

in in your ideal situation you know say we get up to millions and millions of

dollars and I want to go build my own team now you know or whatever the case may be yeah now so the key thing is is

we'll we'll kind of get back off of that in just a moment but the key thing is is that if you have a partnership keep open

communication and talk about everything before you go into that partnership you

gotta make sure you're both on the same page and even if you are in the beginning you still have to keep that

communication going on further down the road okay you know

so with that my my brother says my my camera is laggy and I'm sorry about that

it's probably my internet here you know it we had the storm last

night so but anyways the key thing is is that you gotta have

those open Communications you got both got to be on the same page and if you're not then just exit gracefully you know

unfortunately my exit was not as gracefully because of my partner chose

that so he didn't like the fact that I was leaving so the way I look at it like

look you left with Grace yeah I did you left so just look hey you did your part

and exactly when it come to came to Grace right and and end of the day you

will always get it in return your return on investment is guaranteed in the way

the nature of the universe right yeah leave it at that right and

what's funniest is that that's where I started building this community you know so you know

that's the thing you know but hey

hi in my coaching this is my second law of mindset is everything happens for

your own good not for for a good reason for your good everything that happens to

us in life right it happens for our own good and you can see like the

partnership didn't work out but now look at you right you're building yes you're on your own which is amazing

oh yeah so and that's the thing like so let me kind of get off off that topic

real quick and and you know let's move forward here and I actually you know we're coming up

on 40 minutes here I have a a actually a very important question because I'm a

wholesaler a lot of people in our communities are wholesalers okay and if they're not

wholesalers they're either investors or and want to work with good agents that

can find them good deals not this okay I'm gonna give you ten thousand dollars

off of retail price and you know and you're gonna call it a

deal no that doesn't work that way yeah you know you know so how can wholesalers

work with agents because I primarily do off-market yeah not on Market okay but I

want what I want to do is I want to develop relationships with other agents and hey you get that

property that is distressed it's a hoarder property whatever the case may be

exactly send them our way we'll pick it up we'll we'll work with you I'll JV it

with that agent yeah yeah and split my damn split my commission I don't care

you don't have to do that right here

I'll break it down I wanna I wanna make it a win-win for everybody this is

well first of all hey you come across properties that are distressed and will

be harder to sell on the market and the seller wants like move it fast don't

waste your time putting it on the market send it to us we're gonna pick it up right right yep in return what we will

do is when we come across which you did without even you send me that listing

by the way I've been in communication with him and we we set a time for us to go out he had something come up but

I'm gonna follow up with him that's awesome in return what I will do is I talk to sellers all the time right yep

Whenever there is a seller that wants higher than what we can afford to buy it for kind of like a retail price I'm

gonna get them connected with you that's the reason right yep beyond that how

else can wholesalers and investors work with real estate agents and I haven't seen there are some

wholesalers doing that got a deal that is kind of tight on the

margin right or it doesn't have to be tied on the margin put it on the market put it on the MLS your

assignable interest as long as the broker allows it you can actually put your assignable interest onto MLS as

long as the seller is aware of it right you get the person right it's called Innovation agreement

so you could do that right and work with the Realtors will love it they want

to listen okay yeah no matter what and actually in my contract it and for

marketing I put in there that I'm allowed to put it on the MLS okay yeah so that's one way you can build a

relationship with Realtors beyond that I would say see what wholesalers and investors

actually in my opinion I I have this opinion because I started investing

right I was in you know than Melrose Community I bought his programs and you

know learned a lot about real real estate investment back then and then when I got into real estate I started

working with Real Estate Investors I was always like by now I have probably worked with over 150 investors so we

know exactly what an investor looks for right the cap rate return on investment and all of that right you know

renovation project and all of that right so if you're an investor out there or a

wholesaler out there you want to work with agents that are kind of investors Savvy right not all real estate agents I

would say majority of real estate agents not that they don't want to work with investors they just don't know how to

right they just experience in the investment ground they just move the transactions and they just know how to

buy and sell a house but they just don't know what an investor is looking for so you wanna if there isn't an agent out

there so you want to network with agents find out their experience but if they have the experience

you want to work with agents that knows the investment game there is a lot of

value in working with one because they're on the ground investors and wholesalers may not be right they're

not they may not be I disagree a lot by the way for with people that are heavily

involved in investment and we are heavily involved in the retail right yeah I find especially markets like this

right now investors are like Doomsday mindset like all everything's gonna

crash like and we're like on a skyrocker right right so it's good to have that Synergy between the opposite end of the market right I have that

connection so you can get that perspective and all the signs are

shows us especially in the retail Market that this Market is not slowing down it's going to keep going up at least for

the next three years but investors that I talk to right they're like oh it's it's done like it's markets dry you know

nothing's happening in the market is about to crash baby we're hoping on to our cash you know

you know yeah I agree with that with that mindset I I do

there are a special I've seen a especially after the last year I saw a

lot of people not buying in Detroit where versus the year prior everybody

was buying in Detroit yeah you know so yeah it's it it all it all came down to

the fear it all came down to am I gonna get my or am I going to

get my my high end return that I wanted you know you know so I that's where I talk

with a lot of buyers and I know you know what people are

looking for right now but the thing is is that there's

you know there's the retail side and then there's the investor side and

what I hear from investors and then I talked to other wholesalers

who hate say have a deal locked up way too high and I let them know hey

this is what an investor is going to pay like at this moment you may be lucky to

get a little bit above that but right now they're probably only going to be here and then they go and find

some guy who's doing it for the first time who pays a little bit more above you know they don't have the experience

right right so everybody was lucky in the past couple years because the market was like

this yeah okay it was like that and if you got something and you overpriced it

no problem you still get rid of it yeah yeah for sure and I'm still profitable Dean's still profitable if you

overpriced it you might struggle right but does not mean Market is crashing

right no no it's gonna sit on the market until the pro the price comes proper

yeah the market dictates the price yeah it's the Demand right and by the way

over the last one year you know we are heavily involved in generating like

it's like if you're in the market in in the Metro Detroit area you will

see our ad somewhere right either Google or Facebook Instagram or Tic Tac ads

YouTube ads whatever right and we grab them right we are like we are

hoarding all the good leads but what we have seen now is that even the people

the the the smartest investors in other markets are not coming into Detroit 

even really I could just like you know maybe one of my clients will be

watching this is I gave him the tip like hey go join all the all the other off Market Facebook groups but there

are real estate agents like he's from Florida Paul he bought up three properties in

Detroit without even looking right we thought him and looking it's like hey this is cheap this is fifty thousand

dollars like I could never buy one here in the Florida Market I don't care what it is like I don't care I don't care as

long as this is moving ready just just buy it just go make the offer and it was funny to me was because like hey you

your experience with this like are you sure you want to do this like yeah I've been doing this I'm a real estate agent

I'm like okay this is the right to offer get it under contract right yeah there is there are people that are coming from

you just got to talk to the right investors you know if if there are invest look

I started when there was five thousand dollar houses in Detroit I wish I started when there was a dollar houses

in Detroit I know right decent property was five thousand dollars decent no you still have to do the cosmetics and all

that yeah but now you can't find anything decent like without like a

major problem for forty thousand dollars that's what we are facing right now every day we got buyers that are looking

at that range and it's very hard to find something that's decent there is still needs another even at forty thousand

dollars you still need another like ten thousand dollar worth of work right give or take right so yeah if if you got

investors who've been in this market for 10 years they will never pay 50 000 because

they're used to that five thousand dollar price yep if you're talking to investors they are in like California

Market in New York Market in Florida Market they're like what forty thousand dollars

amazing give me that deal right so you gotta talk to the right

thing no 100 that's the thing like it's funny because I see these posts in my

group and in other groups that hey I'm looking for Detroit properties 

under 30 grand and very light rehab

I'm like unless you go to a war zone you're not gonna get that now I can I can go to like 48213 and

probably get that yeah okay I can go on a rental neighborhood there are certain

areas in Detroit I can't get that but they're they're gonna be they're it's not going to be the highest return

it's going to be the higher risk areas okay and if you don't have a proper

property management system set up by all means you're going to lose your

ass because you're gonna it's gonna go through a year of tenants then they'll either start not pay or as soon as they

leave they'll trash your property or it's not even the tenant as soon as they leave the property does not get 

holiday to say secured properly by the you know by either the homeowner the

property management company whatever it is now you got a furnace stolen hot water tank stolen Windows broken and

and the worst case scenario is you get a you get a squatter

you know and I say that's the worst case because a squatter can hold you up for a long time you know because now you gotta

officially a victim yeah yeah you know you definitely those are very common

problems then even beyond that there are more problems after squad or

squatter is not the end all be all problems the squatter could draw up

draft a quick claim deed yes speak your signature because they got it I don't

know somehow they found your signature they got a fake notary and record the deed into the public records and that's

the big problem right now you got a paddle action but this is the tip I would give to wholesalers and investors

is that if you are facing buyers not wanting to pay the price for the deals

right but you you are confident your numbers are right uh go to saturated

market Facebook groups so California investor groups New York investor groups

Texas and Texas are still medium still medium uh you know California is the

big right investors yeah California will dump money into Detroit and advertise

your deals advertise the opportunities in Detroit there okay yeah collect

buyers from there okay trust me on this because I've been working with the investors all over the states even

different countries right investing in Detroit they they could

like blindfoldedly give you the like market price and you're in wholesaler right they'll give you like what you

what the numbers the highest numbers possible so that's the tip I would give like go to unsaturated markets and

attract buyers from there and it's all you know whenever there is price is the problem that means the whoever is the

buyer they're not recognizing the value right this is like yes principle whenever the price is the problem

whatever you're charging or whatever the product is the buyers are questioning the price is because they don't

recognize the value and if they have it in this market for a long time the value

is diminishing because the property values are appreciating right so now you've got to go find buyers who will

see value in 50 60 000 deals right because there goes to three hundred thousand dollar deals for the same cap

rate right 100 100 agree with you on that and it's

funny because I'll I'll get some people some other either wholesalers or any others that will come

into my group and say hey can I post from other states in here and I go

you're really not going to want to do that no offense No One's Gonna want it you know like

unless now the only difference the only difference the only caveat is if it's a

multi-unit yeah okay multi-family 100 different everybody from everywhere will

want it yeah you know as long as it's priced right of course but I'm like you trying to list a single

family home down in Florida like there's yes there's remote investors but the

price points are going to be way different than the return return on

investment the markets like Florida and New York right now they're almost like breaking it and just to be in the

game right yes you know conversations I have had over the last two years those

markets have like shrinked right meaning because of the price appreciation because the demand on the retail side

they're they're almost making like Pennies on the dollar right so yeah

there is not a lot of opportunity there's still opportunities out there for sure in different markets

yep yeah go after so so no I completely agree with that and that that's a

huge tip I so with that we're coming up to close to the end here I and

I How can any of my audience anybody from the Facebook group anybody here

who's watching this on YouTube or anything like that help you

you know and if they want to work with you how would they be able to get in touch with you as well oh sure the

success broker and any social media platforms Real Estate Sales Machine which is actually by the way

getting rebranded on June 1st as boss agents because when I first started

my coaching program I had this goal in mind that I'm gonna help anyone and

everyone in the real estate sales space you know wholesalers investors with lead generation yeah because that's

my strong suit online needs but after doing this for three years I'm like you

know what I'm just gonna Niche down to just agents right so what what we are doing now is leveraging technology

leveraging AI using Ai and every aspect of real estate sales so I'm

gonna Rebrand to boss agents but the success broker you can find me anywhere how you can contribute is I want to be

in front of as many cameras and as many microphones so I

with my knowledge and experience it's not that you know I want to just be in for because I want to be famous because I want to give back right yes and and

every aspect of the real estate business I have knowledge and experience in you know whether it's Investments I hope I

did wholesale deals myself even though I'm an agent through this last seven eight years right so

you know I could contribute right even if it's lead generation you want to bring me on talk about how can someone

generate leads online with through social media like clockwork I I could show you I literally share my screen and

like hey you know what five minute tutorial right I'm gonna set up an ad and show you guys how you can start

generating leads for five dollars of these right so yeah that's that's that's how you can help me is putting me

in front of your audience and I want to give back to as many people as possible but yeah you can reach out we have

coaching programs only generation on building a real estate business these principles are really designed for

agents but it applies to investors right the whole yeah that hacks and the habits required to become successful in real

estate and the business planning and goal setting and you know the systems required the CRM and the you know lead

generation and you know the objection handling and setting appointment and going analyzing deals and you know a

whole nine yards right yeah no 100 that that's awesome so yeah no

I'm happy to help as much as we can here you know and anybody out there you

know if you are a agent if you want to reach out to them you know what and honestly I

recommend any other wholesalers out there you know you might get flooded by the way any other wholesalers

reach out to him and his team you know and and see how you can you know

benefit from a mutual relationship you know now you know I I sent him a lead

because it came from through my cold call system and they wanted too much you

know I sent him a lead and honestly I don't expect anything back but if I

get something yeah and the guy was pretty nice actually I

thought yeah and he was like yeah you know come out and reset a time but then that day he was like hey and he reached

out and so that tells you that his interest and in getting in this so 

I'll definitely convert but once it sells I got you bro most definitely so that's another way you you know you as a

wholesaler can work on this now as a wholesaler if you're in there and you're

doing it for a few years and you're getting the hang of it you're doing this and you want to become an agent become

an agent you know under a broker that allows you to wholesale yes okay that's the key

thing okay because not all agents will allow you to wholesale I plan on doing it someday but I have

my day job I have a lot of counting days I'm holding my breath

I got a lot going on so you know yeah what the real estate retail space needs

is with diversity right everyone's doing this thing over and over again right but we need wholesalers to become Asians

bring that aspect of the business there are people thirsty in the retail space for the wholesale mileage so you'll get

licensed you will have like a ready-made community that wants to hear from you

like hey food like you're our Master tell us semester what to do

exactly so and and that's the thing you know it's I you know you take that

knowledge you just move it forward and remember what I said in the beginning is you move and you strive to be one

percent better every single day okay if you some days you might move one

percent better and move two percent back who knows but as long as the next day you move one percent better that

it's all forgiven right you know that you just got to keep moving forward so

you know one other thing that there this is we're gonna we're gonna end the show here but one thing that I do

want to ask everybody out there for is it's a personal thing and I I'm I and I

don't usually bring this stuff up all I'm asking it for is prayers at the moment for my mother I she has she's

fighting pancreatic cancer at the moment so we know that there's no getting rid

of it it's just we're trying to prolong her life as much as possible so I at

least want to say you know just prayers I on my on my Facebook page I

do have a there's a link on there it's pinned at the top for a GoFundMe if anybody wants to put anything it's just

to help her out with bills until some disability comes in for her I you know

but at the same point you know I'm mainly just asking for prayers that's it

you know that's all I'm asking for right now everything everything that happens to us it's by God for us yes right so we

ask God that he you know removes this difficulty out of her you know body

and cures her completely if it's good for her and you know if it's if

something else is good for her if it's her time to meet God you know and that's

that's what's good for her we will accept that as the ending right and and

we we have to believe in our heart that God is the ultimate destination right

so he will you know end of the day take care of us and you know this this

sickness made the sickness be an alleviation for her status with God and

God removes all of her sins with this sickness right because of this and 

hopefully in the end it's all about uniting with our loved ones right so

hopefully in the end one day you are able to unite with her with God you know once this circus is over the end of

the day we are all in this circus it's called life and it's temporary end of the day for all of us all of us have to

meet death if each one of us have a different destination as far as how we

will die but we will all die right that's the reality of it but what counts is that we Unite with our loved ones

after that that right our destination is becomes the same with God so I pray for

you for you and yours most definitely I appreciate that and anybody else out there I appreciate it and you know

appreciate any prayers you can give I you know she's a great woman and she's always been there for my life in my life

we've had hard times in the beginning I did not grow up rich I grew up lower middle class I like to call it that

so you know but it's alright it's alright though yeah so

you know it made me the man who I am today and I can I can never take that

back my you know my father I truly he was going through problems

but you know I spent the last years with him and I know that God put him he

I know that God postponed him going

to him because he knew I was not ready to live without him so I truly

believe that's exactly what he's doing with my mother you know and not only me but my

family members I'm one of four children so I have a youngest a young younger

sister I have an older sister and a younger brother so you know blessings to all of them and

the good thing is this is bringing all of us you know together so as a family to work together so

but with that being said all right back to the real estate let's all do

deals together let's get this going and let's dominate this damn Market I

every single day every single week set your goals know exactly where you want

to get to break it down into actionable steps and take action every single day

most definitely alright so with that being said everyone out there

has come to that time you have a great day if you want to contact me

and do deals together my number has been right here this whole time my my

email's been flying down at the bottom here and you know go ahead and contact me I'm happy to work with anybody I'm an

open book I really am so I've contacted so many people has

contacted me just for advice I give it freely all right

if you want to come on video and and and we'll record something by all means I'm happy to do that as well so

with that being said have a great day let's all go do deals together and make more business alright thank you Randy

Real Estate Talk w/ Randy Stedwell Episode #11 | Ronald Walker on How To Make $17K in only 42 Days →

Hey Everyone On Episode #11 We will be bringing back Ronald Walker on the show where he will talk about How to Make $17,000 in only 42 Days. Come join us Monday at 8pm LIVE, and this is one you should not miss.

Ronald Walker’s drive is to inspire others to level up their confidence by learning a skill, learning to invest in Real Estate because he believes it’s a better way to live.

Ronald has complete over 350+ real estate transaction since 2012. In his time as an investor he has used a variety of strategies from wholesaling to creative finance and more.

Through training, knowledge and mindset Ronald goal is to equip others to forge a life of freedom through investing in Real Estate.

Website and free course: https://ronaldwalker.com/

YouTube:/@forged2win

Instagram: Forged2win

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free Facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

So real quick before you did that

and your origin story like how did you get into is that he made an

age joke the last time we were I'm gonna I'm gonna use that kooka

hey everyone out there out there in YouTube land and our Facebook page 

Metro Detroit off Market Real Estate Group welcome to another episode of Real Estate Talk with yours truly Randy Stedwell glad to have everyone here so with all due respect I am bringing out another person that I've had on before just because it is so so good

information that I think we need to have him back Ronald Walker awesome guy and I I really

really love having people on repetitively because we can get the if

you want the origin story go back in the old videos all right we'll we'll do that and then now let's talk about some newer

stuff and let's get some of that going so today as you can see from the topic

it's how to make 17K in 42 days honestly Ronald's gonna talk about

that and I'm gonna be taking notes myself I'm gonna tell you that right now so while we bring honorado right here

and say welcome big welcome to Ronald Walker how you doing today

I'm doing great bro how you doing Randy doing awesome doing awesome so I'm

really glad and I'm happy that you actually agreed to come back on here with us

you know I've been following you for a while as well I you know ever since the last time we've met and honestly

you've been doing really good stuff you have a YouTube channel as well by the way his YouTube channel is a link in the

description so if you want to go follow him please do all his links are in the description and you know so tell me a

little bit about the process on it let's do we could do a for the people who haven't seen your origin story let's do

it quick two three minute backstory that that's all I really want to spend on yeah yeah

100 yeah yeah so I got started in real estate back in 2012 December 2012.

I bought my first real estate course for two thousand dollars the day

before Christmas I watched a webinar and it was counting down and I thought I was gonna lose it and so

I bought a two thousand dollar course it took me three months I did my first deal at that time I was working full

time at JPMorgan Chase and did my first deal I made three thousand dollars on that first deal

after putting more into marketing over the next what was that

seven months or so I just start wholesaling I started learning the game what that looked like Making

Connections doing marketing running around doing bandit signs doing a lot of direct mail and I was able to quit my

job that November November 15th okay and since then I went full time I went full time specifically focusing on

subject two owner finance wraps and the next 18 months acquiring my

very first portfolio we we acquired 127 homes over that next 18 months I then

sold out of that one of my partners at the time and 

went off on my own mid 2015 I believe and just wholesale flips owner

financing and then I moved up to Grand Rapids when I moved here guys it was crazy you know I I had this whole

team I was all boots on the ground the entire acquisition team at a disco team transaction coordinators everything

and moved to Grand Rapids thought I was going to be able to do it remotely and my entire team completely fell apart oh

wow I didn't know what to do and luckily at that point I started

just considering doing virtual virtual wholesaling I started looking at that I fell into a couple courses I bought a

couple courses on it and took my entire business built it up from the

ground up and it went virtual like no joke like three weeks before covet happened and

the whole business was virtual at that point like literally I just launched going virtual I thought I was going to

take a break Cove it happened and my business exploded and within that

next little bit we bought 66 homes over that period going virtual 

built up another owner finance portfolio and then I sold out of that August of 21 actually I sold that

portfolio and and then going through there and a buddy of mine said dude you've been helping a lot of people out

with this real estate thing so you need to you need to start doing the content game and I put a lot of time into it

and I launched that in October of this last year and it's been phenomenal man it's been awesome that's awesome now you

you just like starting things and then selling them let's start over and I say Let's Build It Up sell it and start over

like man you you really like to get that brutal so so I like to tell people I've

you know one of my one of my big flaws through investing has been that I've

always been seduced by cash by quick cash okay so anything that I can do to

put cash in my pocket quickly has always been the thing I've gone to like

first even when I was doing subject 200 financing one of the things I learned early on is yeah I built this huge

portfolio with these guys and and they were my mentors right that when I went full time like I learned the legal

side I learned the entire transaction side I learned how to structure deals from probably one of the smartest guys in the

seller finance space okay and but what I realized is there wasn't a

lot of money up front with seller finance deals because I wasn't assigning animal we were keeping them all ourselves yeah and we were we were

partnering with other wholesalers which was awesome and we were building cash flow but all that cash flow we were

using we were using to acquire more deals and then we were giving The Upfront profits to the wholesalers yeah

for their fees and and all of that and so literally that first year and a half I had no money and and that really

that really just punched me in the face and I was like dude I want cash so I

sold that out got some cash started wholesaling like crazy then I got back

into subject who built another portfolio and I was like dude the Market gonna crash like I

don't want to get stuck with all this so then I sold I sold those notes and I sold that portfolio and so

and so I like to tell people I get seduced by cash but you know it just depends on what

your risk tolerance is what you want with the direction you want to go and if you want the cash flow to cover your

bills and you want to be a property manager managing them or if you want to be doing deals and I've always leaned

towards the doing deals route oh 100 you know I that's one thing I love about

wholesalers there's always a new deal to be made you know it is Quick Cash and sometimes I wish

I could you know what I gotta you know after every five I gotta take one down you know things like that so I'm gonna

get there there you go I'm gonna get there well let's get you there here bro yeah most definitely so but yeah so you

know to me the this whole idea about quick cash and that's what this that's

what attracts new wholesalers and newbies to this business is the Quick

Cash yeah now as these new wholesalers they got to realize there's a lot to do

with it and if you want to scale it don't go spend that quick cash that you just got correct you know take maybe a

little bit ten percent go buy a nice dinner you know for 200 whatever buy your wife something real quick for a

couple hundred bucks and I'll put all the rest of the money back into the business so so I actually you know I agree with you on one sense but on

another sense for your first deal or for your second deal I actually recommend people enjoy

that and Splurge a little bit yes yeah I'll tell you I'll tell you why Randy is when you get that first deal and and you

you launch your business right which we're going to talk about here in a second right launching and being able to

go out and do that first deal inside the deal in a very short period of time which we're going to talk about here in

a second but the reason why splurging is important yeah it is you want to get excited and

if there's anything that causes you to be successful it's your ability to engage your emotions in this business

and if you've never made 20 grand in a month and you've been living paycheck to

paycheck then what happens is there's a lot of restriction it's almost like

you're having a hard time breathing and then it's like you come out of the water and you're able to take this big gasp of

breath and it kind of it fills you up so because a lot of us were sacrificing a

lot of the things we want yes because we can't have it and so that first deal

let's say you go out and you do your first deal and and let's say it is a big deal right some people do small deals

like I did my first deal was three grand so I didn't have any extra money to spend but there's guys their first deal 17

grand another guy a buddy of mine he just did a 52

000 deal I think it was what you can do with that kind of money is it's a Year's worth of money but a

lot of time there's a lot of back sacrifices that we've done so go out in sports take 25

000 and just like level out your life so you feel good 100 now that feeling will

stay with you forever I don't want to give you that motivation to go out and do that next deal so on

those first deals pay yourself 50 to 70 percent of that and then peel off 30 or

25 of it to reinvest in your business yeah don't quit your job yet right don't

oh hell no right don't make it we're doing deals is your soul survival let it be that extra

income so you can build it up and and we're going to talk about getting to your first Mountaintop and and what

those Milestones look like in this I want I really want to dig into that yeah that's what you want to do on that first

deal as you're launching into being a wholesaler is get that first deal prove this concept

and celebrate because there will be nothing like getting your first deal and proving that wow this isn't a scam you we can

actually yeah and you know what I I actually kind I actually agree with you because the thing is is that you come

up with that excitement and you want to continue that excitement but if all your money goes back into your business

where's that excitement going right no so no I I 100 agree with you on that but

I I still got to stress the fact that people putting money back into the business because marketing costs money

yeah if your first deal you only get a thousand dollars don't go splurging on

it like like we're just talking about take that money just put it in marketing you can take about a hundred dollars and

splurge on a nice dinner or something yep but for the most part it all depends

on how much what your first deal my first deal I had thirteen hundred dollars

yeah was not much but to me it was a proof of concept and it worked and it was

thirteen hundred dollars was my portion we actually had that split three

ways so you know it wasn't a huge deal by any

means but it was it was perfect for me so that's dude and that part of the concept is just so powerful because it

proves to you that this process one can be done two can be done by you yes and

three oh dang it wasn't that hard let me just redo it exactly yeah and then once

you get those first three or four deals you're like oh man I can really do this and I also want to give to you guys I

want to give the the formula to quit your job you know that that formula of getting that spot where you have the ability to

quit your job it's so powerful and a lot of people don't really know what that means right like what is what

is that how do I get there it seems like this esoteric ethereal number

and there's actually a very simple formula that people can put in front of themselves so they can look at it and

realize you know this is attainable and so we can we can get into that too most definitely and that's the thing

like everyone's different everyone's number is a little bit different on that so like for me I actually like my

my day job so my number is going to be way higher because I actually like my

job yes you know so everyone's different on what they need to do now

with that being said let's get a little bit into it on how to make 17K

and 42 days now how did you come up with this first off 17K is the national

average for a deal at least from people that I talk to right people on

Supreme national average some people say 18 some people say 25 so you know different things some people say 10 some

people say 15 you know but yeah 17 000 is

and Dallas Texas mine was 18 000 was my average wholesale deal here in Grand Rapids my average is is

a little bit lower at some of the 12 to 13 000 range right between okay on the average but everyone does big deals right

thirty thousand seventy thousand dollar deals or smaller deals I'm still waiting

for those my average is five years so there you go then we'll have one of those pops soon bro you'll you'll make

that so so what you want to do is you want to really launch your business and then launching your business to get your

deal you need to focus on really three things okay okay number one is you

need to know how to do a deal you need the knowledge yes okay and and realizing that it's actually

very simple you know you you go on YouTube and you realize that people on YouTube need to make content for people

to follow them and so they come up with innovative ways of of constructing things and so you'll see like 17 staffs or

22 steps to do a wholesale deal or it's actually not that complicated right people are just looking for innovative

ways it's actually one of the most simple things you can do so one you need to understand those mechanics that first

you need to find a path to get a seller on the phone you need to Market

to them okay which we're going to get into some strategies here in a second two you need to be able to get them to

sign a piece of paper that says you can buy their property three you need to take that piece of paper and send it to

a title company and when you send it to a title company they're going to open up escrow which means that now this

property is at title and they're making sure that it can transfer ownership then

number four is you need to find a buyer number five you need to sign a piece of paper that assigns your rights to that

original contract to your buyer then you need to send number seven you need to

send that paperwork to the same title company and then you need to schedule closing and you'll get a check you don't

even have to show up to closing and so when you understand those steps in the wholesale deal Randy

um you realize that's really really simple but then you realize man this is actually the hardest simple thing I will

probably ever do in my life because I'll beat my head up against the wall trying to find deals and that's that's the

secret sauce when you're launching and so number one you need knowledge number two is you need a network you need the

support system around you you need mentors you need their cash buyers you need Realtors you need title

companies you need attorneys you need certain contractors you need people who

can inspect the property for you you need a lot of these different people and these different people fall into your

network okay yeah and the stronger your network the better you're going to do right your

network might include property providers like Realtors or people other

wholesalers that you might JV with to help them find and connect them to a buyer all of these people are part of

your network and the strength of your network think of it as like one of the core

pillars to the business that the the higher quality that you have the more

money you make because you know the right person who can get a deal done at a ten thousand dollar higher price point

than what you can do where you can make an additional ten thousand dollars by having the right guy in your network

and really partner and that's actually another one of the huge benefits of

connecting with someone who's been in the business five six seven years and learning from them is they have those

connections right and so if you're doing a deal like my first deal Randy I made three grand if I would have had

that deal today it would have been a 35 000 deal right but it was because I was

holding to the formula of just 70 cents minus repair and my repair budget was

extra high and then the buyer knew that I was new so he just hit me right at that number yeah later found out he

could have paid a whole lot more right and so by partnering with somebody and

or you know paying after you do your first deal or when you're going if you have the money paying a little bit for

mentorship you will make that money back and more because of the strength of your network and then number three is you

have to be able to have leads coming and you have to be looking at distressed

properties and if you're not if you don't have leads you don't have a business a lot of people yes you you

know people go through Rich Dad Poor Dad they go through try again learning and they go through all this stuff and that learning can cost a hundred to a hundred

and fifty thousand dollars to get real estate and financial education people go through that and they get the

first two things they get knowledge and they get the network of people around them and they never ever ever have leads

coming in that they're looking at and so the third thing that you need in order to win is leads when you're coming in

so as you're launching your business know what you're doing know the direction and have the knowledge to complete the

transaction two we have to start building the network around you and three have an income source of leads

that come into your business and we can talk a little bit more about those leads to launch your business next most

definitely really quick though anybody who's watching out there if you're watching on YouTube you're watching on

the Facebook group post your questions in the comments we want to hear them we'll answer them as we go along I will

post them up on the screen we'll answer them as we go don't be shy put them in

there and we'll answer right you know we'll try to fit them in what we're talking about so by all means I at least want to

let everybody know you know this is an open discussion as much as possible I you know we're only going to be here an

hour today we normally a little bit go a little bit longer but we're going to try to keep it to an hour so

but with all that being said I completely agree with you because I've actually gone through that with my

business where the networking I've networked so much with different people that's networking is how I met you

honestly I and I I that's how I met a lot of my buyers and I'm seeing where

they're buying what they're what they're buying at and you know that's where I can actually

JV with other people and say hey no you got this locked up too high this needs to be here you're not going to be

able to sell it right now you know and if you want a JV with me by all means my number's right here

below I you know and you can actually contact me well jv on any deal that you

have in the Tri-County area for the Metro Detroit now with that being said I'm going through that if you don't

if I don't have leads coming in I don't have that's it like if I'm just relying on JV deals and I don't have many jvitos

coming in my business has gone down so I've ramped up my cold calling

wait I gotta create leads somehow you know so things like that let you get

back to what we were talking about oh absolutely so basically what that looks like when you dive into getting leads is

I recommend that everybody Outline Three lead sources for

themselves and think of it as three funnels you know we we get caught up in this idea that funnels are web pages

right from click funnels yep but funnels are actually just the path in which you're going to find a customer in

our case a seller and so if you think of it in terms of every strategy works okay

some strategies cost more money like TV ads they cost more money right you guys spend like eight grand or 10 grand

just to get started with TV ads Direct Mail costs a little bit of money that's how I got started right you

got to spend seven eight two thousand dollars a week a month sometimes right

and that's cold calling you can pay skip tracing and you can call those people over and over again

texting is even cheaper but think of it this way and it's it's almost always the case is the

cheaper the lead Source or the cheaper the cost the lower quality lead now

that's not the case with lists but it is the case with channels

and so you have both outbound and inbound marketing channels and the

cheaper way to do it is to have some outbound marketing channels where you're doing the cold calling where you're

doing the texting where you're driving to that person's house and knocking on the door right those are all outbound

channels in order to find a deal and the cool thing with outbound channels

is they're very hard to do and technique someone that has grit and has

courage and it's you can learn for low cost and you can really play the game on

hard mode and even though again it's on hard mode so you're gonna die a lot or

you're gonna fail a lot right but there's very little Financial cost to

you and that low Financial cost allows you to get the Reps in if you can

survive the gauntlet that you're going to go through now when you switch over to incoming

leads your quality of lead goes up drastically and you have people who actually want

to talk to you that's that's the difference is people are coming to you saying I would like to sell my house

yeah versus you calling someone saying would you like to sell your house and yeah I don't know the difference there

it's pretty drastic and so that's that's how you kind of want to distinguish and so I like saying

hey pick three channels right what is that going to be is that going to be jving with other wholesalers is that

going to be cold calling and is that going to be texting right yeah is that going to be jving with other with Realtors J being with wholesalers and

direct mail is that going to be pay-per-click Bing and direct mail right whatever

that's going to be find three of them that you can focus on because in the

realm of marketing you do want an element where you're omnipresent where you're you're your

reach is greater it seems greater than you might actually be right you're

casting this wide net and you want that and so picking three but if you go more than that then

you really bog yourself down and you can't really build that out and when you pick three then you want to narrow it

down to one one build the one out and then build the second one out and then build the third one out and see how it

develops over time you begin to have that road map because Milestone number one

so do your first deal Milestone number two is to put six figures or a Year's worth

of income in the back once you have a Year's worth of income in the bank

from your normal job now you have options and you get to that top of that first Mountaintop and you get to decide

what you want to do next do you want to quit your job yeah you want to start flipping do you want to do Buy and Hold

what is that next thing you now are at that mountain peak where you can choose the direction you want to go but you

want to choose those three funnels first and you want to decide okay which one am I going to go into to get that first

deal 100 no I completely agree with that

I chose cold calling myself so because that is

that is what I started off with I actually I started off with mailing

and I started off with mailers it was really expensive and I wasn't getting much out of it it wasn't as quick okay

and what I found out about mailers is you gotta continuously mail to them in

order for it to keep working and so I switched it up to cold calling because

it's a quicker response it's a quicker you know either yes or no you know so or

follow-ups so things like that and and I want you to think about this right so when you think about the money that you

need to quit your job right which we talked about yep because a lot of times when we do a deal

it feels like that deal disappears and then now we gotta do another deal right and it feels like this never-ending

cycle with no actual goal but when you play like video games

they have all these mechanisms built in to make you feel like you're succeeding along the way right that's right these

points they're unlocking things there's all kinds of cool stuff right that's why guys get involved in them is to have

Adventure they're making progress and they're unlocking cool stuff along the way right they're gamifying a heck of

video game your entire experience and so you want to do that with wholesaling as well one of the ways to do that is take

your entire money you need in order to quit your job okay so let's just say it's 75 000 okay yeah I need 75 grand to

quit my job then what you're going to do is you're going to divide that number 75 by an average deal size so let's say

your average deal is eight grand okay we'll just go with a lower number your average deal is eight grand that means

you need 9.3 deals in order to quit your job okay well now

if you know that it's like okay I need to do nine deals this year yeah

that's what that's what that looks like in order to put that money in the bank and so if you can think that way

that will allow you to be able to move forward in your career and

no dude this is what it looks like for me to get freedom and you quantify that

freedom number and then you back into it you say okay well if I need nine deals to quit my job

and that's an average right imagine if you do a five thousand dollar deal I just talked to a wholesaler today 

we're talking and his first deal he did like twenty seven thousand right over here holy and so and he's only I think

he's only done one he might have just done a second deal but he's like yeah my goal is to make 50

Grand by June and I'm doing XYZ I was like cool what about by the end of the year he's like I'm trying to figure out

how they can make this consistent to do 250. and I was like that's exactly what you're looking like what do you think in

the average deal size she's like well this one I did 27. it's like well let's pull that back a little bit it's not going to be normal let's pull that back

to like 15. he's like okay I like that and that's what you want to do you

want to figure out what that average is well how much money divide it and figure out your deals now you have your next 12

month plan right right I need to do nine deals in 12 months okay if I do this now

what is that daily activity look like to do a deal a month yep once you can

figure that out which I'll give you a hint you want to generate about 40 leads 40 to 50 leads per deal if you can

generate those leads to be able to do those deals well now figure out what

that takes and now you know the activity you need in order to do the deal so to

come back to the original Point how do we make 17 000 in the next 42 days right

this is this is what it looks like generate 50 leads in the next two weeks and you

generate 50 leads by doing a couple things one you can drive for dollars drive around and get 200 driving for

dollars leads okay 2700 leads then I want you to skip trace and I want you to

call every phone number off of every one of those leads and I want you to send a handwritten direct mail piece to all of

them okay then next week I want you to send a second direct mail piece to all of them

and call all of them again yep on top of that reach out to your

local city ask them for either a water shutoff list or code violation list and

do the same thing with them okay whichever area you're focused on and start hitting that list over and

over and over again and if you want to do another additional thing drive out to those lists those properties of those

list knock on the door or knock on the neighbor's door and ask them if they know anything about the house and now

what you're doing is you're starting to talk to more people and by talking to those people you're essentially speaking

out into the world saying what you want and eventually that will come back

yeah 100 you know the more people you talk to the more leads you're gonna get

the better leads they're gonna be I will hopefully the better leads this is what I've noticed though is is the

numbers that you're saying I think they have to have some sort of

distress okay so for instance the code violations the tax liens whatever

they have to be a good distress at that moment okay and with so I just want to

add add to that so yeah so if I if I might if I might touch onto that so yeah by reaching out what you're looking for

initially when you're reaching out to people is you're reaching out and you're looking for someone to raise their hand and say

hey I'm open to selling yep okay out of 40 to 50 people who raise their

hand and say I'm open to selling yeah only about four to seven of them are actually going

to be distressed yeah okay so so what you're doing is you're reaching out for

about 50. you're trying to get 50 leads out of that only four to seven of them

are actually going to be a distressed or like really needing to sell for some

reason or another right or just just sick and tired of what's going on right where they're like you know what I don't

want to sell to a realtor I just I want to sell you this property it's been a little bit of a headache if you can make

it easy for me I'll sell it to you right exactly I mean four to seven of them are going to be around that range and out of

those four to seven you'll get a deal okay all right so

that's kind of what that looks like and this is one of the things that if you've heard people talk about like PPC

marketing yeah one of the reasons why people really like PVC marketing if you can really dial it in is

out of about four leads you have one of those right you have one of them so out of

four of them so now you talk to four people and one of them is stress rather than talking to 50 and two of them or

three of them or four right like the numbers are much smaller and it just

comes directly to you rather than you having a cold call or text messages and deal with a lot of the the hate talk

right that we have to go through yeah and so that's one of the reasons a lot of those people like that Randy is

because it just it cuts through it but yeah you need to spend the money exactly and

that's actually eventually where I'm going to go so actually one of the guys that I

really admire and respect who does a lot of PPC is actually Philip Blake I've had

him on the show you know him as well I and he does really well with PPC so that is

one thing that I want to get into but I need a healthy budget for that so

u PPC somebody asked what is PPC Christina PPC is pay per click okay so

pay per click is PPC means every time somebody clicks the button of your ad you pay a fee okay now not everybody who clicks the button is going to submit a form keep that in mind alright so that's why your cost to whatever form you it can it can rise it just depends it's also in the beginning it's a huge

learning curve and you're going to be spending a lot of money learning that in the beginning

and unless you get some sort of mentorship about that correct so alright and I highly recommend a

mentorship for that yeah and and a lot of the PVC it's it's really Google

ads it's when you Google search something and Those ads come up it's your ad being

up there and then people essentially you're at following people around the internet right

and so that way you can get more leads that's that's what that looks like it's not just a learning curve too on

how to set it up which it absolutely is I I know guys who paid twenty thousand

dollars just to have their Google ads set up by somebody but it's not just the setup it's

actually Google takes a minute to learn your account and who to look for and so

what you'll find is when you do PPC you do not want to turn

it off because it takes on 90 to 100 day 120 day learning curve just for Google

to tailor it to the people even if all of your keywords are right even if all

your ads are even if it's 100 copied of a field blank if I was to take his

system copy it put it into a brand new and you produce like his no it wouldn't

because the algorithm is learning and so whenever you go into PPC you need to be

able to commit for three months to four months just

for the learning aspect that doesn't mean you're not going to get any leads but your cost per lead is going to be

significantly higher and then it's gradually going to creep down and it

actually you win over the long term when you're six months eight months a year and a half in that's when you really

start winning but you've got to be able to play for the long term when you get into the PVC if you're looking just for

a deal right now that you can turn on and off PPC is not your PVC is not your game your game is going to be texting

cold cold calling reaching out to other wholesalers helping people negotiate deals like

getting on the phone and doing the grunt work is where you're gonna focus and and that's where and you know I had to say

it's not just Google everybody thinks okay yes it's it's Google but you also

think of social media too Facebook ads how many how many people do you see on

there you know you wanna yeah do you have distress house or do you have a hoarder house do you know anybody so on

and so forth you know any other type of social media I you know anything that somebody

can click on an ad and I and they can fill out a form to contact

you is basically pay per click so not just Google but Google being all the

search engines all the social medias all of it okay so and each one has its own

learning curve too just like that all right Google is not like Bing

and Bing is not like Facebook ads and Tick Tock ads and this and that and

you know YouTube ads as well you know all of that so it's a huge learning

curve so here's what I here's what I recommend people do if you guys are out there and you're like okay what what is

my daily action plan what do I need to do okay 

if you're doing text messages you want to send out 18 000 text messages to get

a deal okay so think think of this batch leads

allows you to send a thousand a day so one deal if you send out 18 000 text

messages One A Day for 18 days you should have a deal right assuming your list is even reasonably okay 18

000 tax money you want to talk to on the phone you want to talk to 10 homeowners a day and 50 a week

you want to then do 120 driving for dollars leads a week around your neighborhood

and per week and do the system I said earlier go back and listen to it okay two Direct Mail pieces call everybody

once a week you can even do a third one number three is I want you to connect with two new wholesalers through

Facebook per day or excuse me per week until

you've created three solid connections got three solid connections and and

honestly you should probably keep doing it but once you create three solid connections not only are you looking to

do deals where you're looking to bolster your resolve in this business right

something you guys can win and be on the journey together right

that when I first started finding those couple people I had I had a guy I did two deals

with but I met with them for like two years he became a really good friend of mine and we usually just get coffee he worked

at a car dealership we used to get coffee after I went full time right across the street from his car

dealership even into my partnership and it was just an opportunity for me

to learn sales for me to connect with them for us to encourage one another for him to do some stuff for me and

eventually that guy came to work for me okay that job he came to work for me as

an acquisition coordinator because he wanted to get in and we were great friends right right so

that's just one example but there's lots of different things for you guys to encourage each other get together and

really pump up and then two more things you want to call A realtor a day just one

just connect with a realtor have a conversation and then comp five properties

pull up five leads on Zillow five properties that are for sale if you have the money to go get 

privy get privy start looking at them and comp deal start getting used to

looking at what numbers are because you need to understand what are the skills that I need and one

of those is being able to analyze a property's value so you want to start looking at problems and if you do that

every single day you're going to get a deal you're going to get you know the the challenge is

who's going to do it every day or are you going to fall short and then you're going to complain you're going to say this stuff doesn't work and then you're

going to blame it on watching Randy and watching me and talking to people the truth is you got to do the work that's

why I like to say this is the easiest hard thing you will ever do yes you have

to stay consistent is powerful if it takes you if it takes you five months to send that

18 000 text messages you'll do a deal in five months yeah if you send out 18 000

text messages this month you'll do a deal this month right so it's in terms

to how much you actually work and you put in the work towards these things that generate leads

and I got a little secret to help people get for their second meal and their third and going forward

a lot of people what they happen when they first deal is they start they get this deal and

they're starting to go through the process well when you have a deal sometimes it doesn't take it's not

overnight okay you've got to go through this process you got to go through the title company you gotta go do so it

takes time well during that time what are you doing all right you're not just a lot of

people what they do is they just drop everything off to the side and okay let's concentrate on this deal

and let's get it done no this is what you do you can you you

take your 20 minutes a day half hour day whatever it may take you to get through that

stuff and then you concentrate on and the money's in this the follow-ups

all those people that said yes that raised their hand I want to sell

but they're not sure guess what you do you follow up with them the next week or the next day however long you want to

okay however long the conversation that you had with them feels I had one person

that like I've been following up with this lady every single week for like four months

okay now she's ready for me to come out there for an appointment and take

pictures and and literally I don't sit there and when I call her I I don't sit there and say hey I'm

calling about your property on blah blah blah no I call her like a friend hey Patty how you doing how was your weekend

you know this is Randy by the way oh hey Randy how's it the house is the first

furthest thing we talk about yep you know I talk about it towards the end like hey are you ready for that you know

you ready for me to come out there oh no I got this you know I got that I got it okay sure does it make sense for me to

follow back up next Monday sure you know okay I think I can do that you know

no problem yeah you know well and and another quick tip on that when someone says hey I'm

thinking about selling in a year whatever that time frame is right if it's a year three months whatever cut it

in half yes so if they say you're calling back in six months so if they

say six months call back in three if they say three months calling back in a month and a half if they say call me in two weeks call them in a week

because what you don't want to do is you don't want to be the guy who misses the

boat because you waited too long oh yeah right so always call them like cut that in half if you cut that in half that'll

be a strong way of of moving forward and being able to do that

Ron walovator said three years is his personal best I by God we were we're in

presence of royalty over here Ron Walker even I honestly three years personal best that's great I'm doing a deal right

now that I'm almost I was almost there I'm like two a little bit over two years right now that we're closing tomorrow

thank God so you know you know God willing it closes so

yeah but with that the money is in the

follow-ups period you know we've had this deal sold and then unsold many

times and some because of the seller some because of the buyers so it it it's

ridiculous one of the things that you're you're talking about too Randy I think is is so powerful with what you said is

what happens is people will get that first deal and then they'll stop doing the activity exactly I want you guys to

think about this for a second so if it took me two weeks to generate or let's say it took you a month okay to generate

this right through your activity and then you stop and let's say it takes a month to close

that deal okay so now you're two months from you know maybe let's say you got

into a year six weeks away from your last contract but you've stopped the activity to get the deal it closes and now you got to do the

activity again for another you've actually gone two months without the activity to generate a deal and so you go from

one deal and then it takes you another two months to get a deal what happens is that that lead

generation activity has been stretched and that's what actually causes people to deflate it's like I got a deal and

now I have no idea where my next deal is well you haven't worked on lead generation in two months

right you got excited because this happened and so think of it in terms of a pipeline if it takes two weeks to get

a deal whatever that amount of work took you need to maintain that so you can

have your next deal coming up this is one of the the key things from going from your first deal to generate

consistent deals is being able to put a system in place really your first system

in place and that's not podio that's not a CRM that's not anything like that the

first system is a step-by-step process that causes leads to be generated

without you so this may be a VA who sends out the text messages for

you right so the text message come in and then you work them now it's happening without you having to press

the button and your emotional side giving in the way and be like oh I don't feel like doing it today no I have

someone unpairing four bucks an hour for two hours three times a week to hit that

button for me so I can generate it so I can work the leads right yep that or I'm

paying you know I'm going to call geeks.com and I'm I'm paying for some cold callers and now I've got cold

callers coming in right whatever that looks like and that's one thing that can also be kind of hard people like well

what should I focus on well that's why you want to connect with someone to to give you a path so you're not just

wasting money you know the you know investing in yourself is the best investment you can make right and the

reason why is you spend three grand in in education what that's going to do that's going to save you probably 30

Grand in mistakes okay and you're trying to figure it out think of the net never

ending uncertainty you have trying to figure out yourself and in real estate investing the journey to your first

hundred grand is like going through a jungle okay there's Tigers there's pitfalls there's Cliffs there's all

kinds of stuff and whoever you reach out to whatever program you go to whatever you do every

one of those is simply a path through the jungle and there's paper paths right

but if you can follow a path to get to where you want to go well now you have experience well if you

get three paths you can walk down each path you can figure out what works that's why going in and connecting and

buying the stuff I've spent I spent probably 200 Grand on courses just stealing different stuff from different

people yep okay and so you want to be able to walk down that but continue to create a system that

generates those leads and the faster you can put a little bit of money aside

to have those leads generated without your direct involvement the faster you're going to have a

consistent lead flow and now you got to work on talking to the sellers and refining that skill of talking to the

sellers if you don't have the money that's okay there's guys who do millions of dollars a year and they're cold

calling right but they're cool calling 40 hours a week

all right and the question is are you willing to cold call 40 hours a week right yeah are you you know and and if

so it's actually a very high paying job yeah if you're willing to do that to

close the deals but most people don't want to do it and so you got to figure out who am I what am I willing to do how

do I create that consistent lead flow and now if I have eight leads coming in a week

automatically you know you have eight leads right if you've got 15 leads coming in automatically you know you got

15 leads coming in that you can work to get that deal a month if you've got 30 leads coming in hey now I've got enough

that I know I'm going to be getting somewhere between two and three Deals a month well heck now I've got a 30 000 a

year business to be able to move down that route oh 100 and that's the thing like you

know I have a cold caller right now I have I don't have her doing 40 hours a week I have her doing 15 hours a week

five days a week for three hours yep and it's the three main hours that people

usually are available so and sometimes you can play around with the times too you know things like

that so you don't have to go balls out in first when I first got a VA I tried

her out for two days a week three days a week or or two hours each day for five days you know instead of three

and and I try different va's to see who's the best but keep in mind your

va's are if you go with somebody who's overseas okay and they're only as good as you

train them all right and so this is why I I recommend some people start doing

the if they're doing the cold calling do the cold calling yourself so you know what to expect and you know

how to train them okay if you don't if you don't want to go through that

partner up with somebody who does know how to do that okay or ask pay somebody

to come and train your cold caller and your VA you know it it comes tremendous value but

another big thing that I do is I constantly listen to their calls not all

the time but every now and then I'm listening and then we bring in for either once a week or once every other

week we bring in for a half hour training session hey this is was it let's try this

this intro here okay and let's see how it goes we'll test this out and if

it can if it does well we'll keep it if it doesn't we'll scrap it and go back to the old way you know or try something

new yeah you know you're always testing to see what gets you the most results the best results if

you're not then you're just going to fizzle a little bit away and I hate to say that

but it's the truth you know you're going you know everyone wants to okay they

want to say what's the magic word to sit to get them to say yes I want to sell

at what your price is there's no magic words it's getting to know them we're problem solvers we're

here if they have a problem great if they don't if they don't want to sell let's get on to the next one yep

all right so didn't even go on a tangent over there but it's just you know I'm very

component of training training your va's or training your people okay and

if you're not and you just expect somebody to know exactly what you know that's on you not them

okay so communication is the key in your personal life and it's in your professional life too so you know

that's good man that's that's very good that's very good cool

where else do you want to go man all right so we only got a few minutes left here so real quick somebody said

connect with a sub 2 student that that was Daniel Lewis

by all means I love connecting with other people and sub two students sub two students are great in my opinion

some two students are it's great for a dyspo side not for a getting getting the

lead side all right so yeah that's an option that's just JV with somebody I you know if you have

questions on a substitute you know by all means link up with somebody who knows more about it and learn about it

know that there's other options than just a cash offer if a seller doesn't

want to come down on their price now if they're not open to those terms or any other terms and they just want cash and

they're still stuck at the high price there's nothing you can do yeah okay I and you know so what would you say way

to you know so what what would be the perfect say eight hour day

for somebody just starting out and and literally like we come through day

one of wholesaling yep 101. what would what would be their schedule

so first I want to figure out your goals okay before we can dictate your schedule

we got to figure out your goals we got to figure out where you're at we got to figure out what you want to do I'll give you an example I I made a mistake with

one of my first students that I took on formally and I just jumped in come to

find out he actually wanted to flip properties they didn't want to Wholesales I'm like talking all about wholesaling and his first two properties

he bought the flip okay so it was like so first we got to figure out your goals and what your exit and what it is you

want from there then we got to understand you know you got to understand time okay

and and the reason why time is important is how much are you going to actually work now you're gonna think about it how

are you gonna work and I like to break down time what I call into buckets okay so a full bucket of time four hours okay

a half of time is two hours so that means you have six buckets time per day

you have 24 hours a day six buckets of time two buckets of sleeping which means you have four buckets to do something

depending on what you're doing yeah four buckets you have half buckets it takes

15 to 20 minutes just to get your brain acclimated to doing a job you won't even

be productive at anything you do unless you can sit down and focus on that activity for a minimum of 15 minutes

just to get started and that's why you want to say hey I'm focusing on something for two to four

hours at a time okay if you're gonna cold call don't like yes ramp yourself up for an hour but understand you're

only going to have about 45 minutes of productive time it's better if you can go a Full Bucket

which is about two hours but if you have to ramp yourself up take a break I I understand it's tough right

however allocate your time into buckets out of those buckets now you need to split it between

initially you need to split it between getting your lists and getting the list that you're going to reach out to and

actually reaching out okay my recommendation is spend a

ridiculous amount of time getting your list up front and then transition into 100 Outreach

one of the mistakes people do is they transition into building CRM’s and systems and websites and all of them

none of it matters it does matter actually it just matters not right now matters next

and so your schedule would look like the first thing that you do is you get leads if

you don't have any money that means driving for dollars spend a Full Bucket spend four hours three times a week

going out until you have a minimum of 120 driving for dollars leads hopefully

closer to 300. then transition and I want you to call those

leads for a half a bucket at a time hopefully three to five days a week okay

and what that's going to mean is that means you're going to do if you do half buckets five days a week that's 10 hours

of cold calling 10 hours to reach out to them and so now you have

12 hours of driving for dollars 10 hours of calling and that is 22 hours a

week in Outreach that you're just maintaining trying to get leads okay and

if you can maintain that you can build that up all at the same time as if you can spend another two

hours even if it's just two hours a week or two hours twice you know like twice a

week reaching out to other wholesalers specifically guys who are who can do deals like yourself right in your area

and you don't even have to worry about the Dispo you're just generating that lead and you can connect with someone

else to sell the deal so you can start generating the leads initially

that's what you want to do you want to focus on your list whatever that is driving for dollars

prop stream reaching out to the city for any types of violations Realtors who are doing

between you know you know that have done a few deals three four deals up to

you know two million dollars a year so they're still hungry and they want to work with you reach out to them start

connecting over and over and over and over again try to spend 12 to 15 hours a week just

reaching out that's how you're going to be successful that's how you're going to get your first deal and Beyond and then

the fastest way to scale is to do one of two things it's either

to Outsource the marketing so it's consistent or it's to Outsource the

admin first if you can Outsource one of those two things first then your second thing will

be to Outsource the other and then your third now you're focused specifically on sales now you can focus

on okay what does it look like to build my team with a lead manager to follow up with a disco guy and you can start

gradually building out until you can eventually replace yourself in Acquisitions and now you've got a bigger

business a 100 that that's awesome I really do appreciate that and you know that is

that is 100 a knowledge bomb so anybody who's out there watching if you haven't take notes yet all right

rewind this watch it again take notes all right so for anybody who's just

starting out if you are looking for somebody to dispose at least in the Metro Detroit area

my information is scrolling at the bottom my email is here at the bottom all right I my phone number is right

here you can reach out to me call me anytime if I don't answer leave me a message all right I will get back to you

now Ronald if somebody wants to work with you okay how can they get a hold of

you if they want to mention you have a mentorship as well or anything like that

yeah so so first things first I got a whole bunch of free stuff okay I got an entire get your first deal free

course I've got an entire course on doing seller or talking to Sellers and closing

deals 100 for free and the different ways of finding properties 100 for free

just go to my website at Ronald walker.com and go you know go to the launch set

and really jump in and get started and learn the process but all of that's going to get you your first deal you see

before anybody comes and mentors with me I want them to be successful I want them to have those resources and have the

value so go there get those stuff if you really do are irkin to find a mentor

you can schedule a free strategy session on my website it is actually strategy session I'll sit down with you

I'll figure out your goals I'll give you a road map and I'll share with you what it looks like if I have some slots open

I do have just a few I can only do so many at a time and what all that would look like I'd

love to do that but get a free strategy session we'll sit down we'll unpack and we'll go from there but until you're

ready for that man go get your first deal go to Ronald walker.com and get some of that sort of resources that's

awesome I really do appreciate you coming out here and and also the link for his website is in the description 

at the bottom I you know so you can check it out there I also I believe I

have your links to your social medias in there as well so at least you're too YouTube channel so follow his YouTube

channel he got some he dropped some really good bombs on his YouTube channel I I tell you right now so I'll be in the

car watching it just just listening so so it's really good now I you know so

we're gonna end this show today at just after just a little bit over an hour and

I really want to thank Ronald thank you for coming on and I really

appreciate you coming on and taking the time I'll just spend it with us and 

teach you some of these newbies out here no offense any newbies out there so

you know we want to be we we want to teach you here as much as possible we

want to gain knowledge to the people yes you may be competition but you know what there's enough deals out there for

everybody there really is well and if if anyone's still watching come out

to the Detroit Michigan Ria on this month on I'm gonna be on the panel

and we're going to be talking about some really cool stuff so yeah come on out and hang out with us

that's awesome I appreciate that you guys have all have a great day and we'll

see you on the next episode in two weeks all right have a good one.

Real Estate Talk w/ Randy Stedwell Episode #10 | Carson Whaley Investor & Wholesaler →

On Episode 10 We will be talking with Carson Whaley who is a Wholesaler and a investor. we will be talking about up coming strategies on how he is finding deals, and what fix and flips he is currently working on.

On how he was going from making 50k at a Dealership

to doing 80k wholesale in his first year

to doing $160k year to date.

This year he will probably close around 175-185,

buying a rental ,and having 35k in equity.

Goal for next year is 300k.

Anyone can do it with the right info and systems

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free Facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

So real quick before you did that

and your origin story like how did you get into is that he he made an age joke the last time we were I'm

gonna I'm gonna use that kooka 

hey how's it going everybody listen we got a great guest today 

his name is Carson Whaley I've had him on here before so we've had his origin story how he how he started what he's

doing things like that if you miss that go back it's in one of the previous

episodes that we'd be before this year before we even started naming the the show

but welcome to Real Estate Talk with Randy Stedwell I am Randy Stedwell nice

to meet you if you're new to the show please please do comment let us know

what you think ask any questions you want in the comments so on and so forth so without further a do I'm going to

bring on Carson Carson how you doing what's up man how are you I'm doing alright how are you good awesome

so we have we're actually just talking about your deal you had an Hazel

Park yeah we're doing some comps yeah running some comps and things like that

so is that is that property a in good

condition exterior is in good condition has I mean

not newer but it was before it was tenant occupied it was owner occupied and so he had done

roof face to shop soffit gutters siding all that good stuff the insides just

hasn't been touched in 15 years needs a facelift so just a nice cosmetic rehab

so yeah so so by all means if you're

interested in the Hazel Park area you got his number right there that um you know give him a call but we'll

go into some business strategies and things like that so since the last time we had you on

I think it was back in October yeah I think so yeah how was how's business

going have you changed anything like you know what have you learned and yeah 

so I think yeah it was like October when we last met the reason I say that is because that's when I had just moved

down here into Detroit so I mean by by

you know force of my my conditions now yeah I have you know things have changed for business as far as

you know I still do everything out of Genesee County Flint area a little bit down in Oakland Park

obviously with or Oakland or Oakland County obviously at that Hazel Park deal but yeah I would say that you know now

you know I'm a little more strict with what I'm I'm looking at which kind of

forced me to get better at running my numbers strictly just because I don't want to drive up there every single day

you know and just look at every house to look at every house and so yeah it's forced me to get a little better

things too just to be a little more efficient so all right so are you trying to do a

little bit more virtual or just schedule everything

all at once so yeah answer your question

I still look at everything that I buy obviously or wholesale and buy but

um I would say that my process is a little bit different as far as talking to a seller getting a little bit of a

pre-commitment most not most cases I would say 50 50. I will get a contract out of

somebody before I go to the house and if I can't get a contract then I do something called

upfront contracts it's basically just a little bit of commitment from you to know that basically I'm setting the

stage and letting you know I'm going to buy the property not to take a look and get you an offer or let you know what I

think it's worth you know you know if they have anything against that then I don't really go to the house

so yeah so it's basically like you're saying okay based on what you've told me

if everything you said is accurate this is what I can pay yep and most times

it's it's on but sometimes it's off and when it is they can understand because it comes

from a place of well look you know so the furnace was new but it's clearly not new you know it looks to be 15 20 years

old you know we're gonna adjust accordingly from there you know yeah 

as far as price goes and so it's not it's really not too bad when we renegotiate price I think I think so too sellers right

like they're not looking at homes every single day so they're going to miss things or have a little bit of different interpretation or what's good to you it might not be

good or you know me yeah so it's not really like the blame game as soon we

get there we just have a reasoning for why now we're different okay here so yeah most definitely and

that's awesome so are you still cold calling like how are you getting your leads yeah so right now we're doing

we're just doing outbounds I mean I do want to put some inbound marketing together but okay outbounds are doing

well so I do both pool calling and texting I have a couple of days that do both for me

they push them over the CRM is warm I take it from there but yeah everything that I do still is

cold and outbound between texting and calling who do you use for your texting

launch control I think I use launch control I know launch control and

what is I think it's REI reply good stuff about them too they sound pretty similar

I think it just depends on what you want or how many people you have working with you you know how much you're getting in Poland and whatnot so yeah

most definitely I actually follow the same type of system I just don't do the texting I'm

just doing cold calling at the moment texting has worked out well for us actually yeah

I'm surprised I didn't really have any expectation but it's it's I've only been doing it since the beginning of the

year but I'll tell you that so many more people reply to you and I think

because the answer rate is is higher the chances of getting a yes is

higher is obviously it's a numbers game yeah but it's just funny I like it just because you know even if you have

like a list of you know how let's say you have a big list of you know 5 000 people on it that you're kind of you're cold calling throughout the month like

there's if you go if you have a dialer that'll show you how many times you call numbers

you can pull that and then look at how many times people have never been called or never never answered and it's

such a high rate it's like then you finally get them on the phone after calling that number five six times just for them to tell you no right I sent out

you know I think you can send a bat 150 text messages is a batch so you send a batch in the morning it sends out to 150

people or phone numbers even if they come back and say no F off whatever at least I got that

response out and then I can push you out instead of continuing marketing to you you know like to me a response any

response is better no response oh 100 you know I I'm all for you know at least

getting something out of them you know yeah so yeah 

I like I like it a lot I mean I think it all works but for me I just I like the texting yeah I think I need to get it

into it a little bit more I'm a little bit deeper so I use call tools for my cold calling

I've never used call tools but I've heard a lot you know I've heard call tools a lot a lot of programs a lot of

people throw calls yeah I actually I actually really like culture is that a dialer is that is that just yeah so it's

a DOT you can use it as a dialer and a CRM but I put all my lists inside there

and I do everything the only thing that goes over my podio is anything that anybody says yes okay we fill it out and

it just goes over to the podio so now my podio is not filled with all these

leads that we have in contact yeah right that's how mine's set up the only thing that Tim if you're in my podio it's because you raise your hand you know

exactly yeah so so and it makes it just keeps it clean

I like it and I like it because if if your Rodeo is that clean then two

what you can do from there which I just a lot of things I'm doing this year honestly is not much different I'm just I I have pulled probably 50 60 000

addresses over the last three years and I've kept them all in what is it badge leads I think

back I like batch leads for a lot of their stuff I don't use their call I don't use their dialer or any other marketing stuff but  I use them for

their skip tracing or for their I get them to pull my lists and then saving them on that that list tab that they

have is really cool because everything that I've done in the last three years or like that's only been

doing it for about three years I've pulled that and took all those

people who were still on the table they haven't told me no we bought it got a deal done or whatever

through them inside the texting and that's all I've done and all the texting all the deals we got in this year which

I mean I say all but I think it's been probably four deals with the fifth one

in the works the one I got the Hazel Park deal that's I'm texting yeah all this came from prior prior data

I've had the last two to three years so I mean if you have enough data I would

like I would you know squeeze the there's still juice in there I would still be the use out of it you know just

because you use them last year like oh that's just crazy for me you know unless you've been I've only been doing it for

three years but here in your first or second year you don't have that this year I've just went back and and

remarketed a lot of those same people and I've gotten I think half the deal as a sheriff came

from that so expe if it's a campaign that you know worked yeah that's what you want to track your campaigns too

yeah but you know if you have a deal log or whatever that's your CRM or you're running like a you know spreadsheet on Google it is

so important to know where you pulled that from you know whether you're beating a dead horse you're actually still pulling

some money out of that that you know certain list or whatever you pulled super important definitely all the

little things you don't think about you know year one and two and stuff you're just so worried about getting a deal which again I mean I should be your

farm you know your front Focus but some of the little things you pick up along the way we're like just the little things that you know can make you that

much more money is you just you're you know your awareness goes up obviously over oh most definitely so nothing you

can do about it except for you know through time and I guess experience but yeah and so what are the some of the lists

that you've been pulling like as far as like the or the criteria yeah what

are you playing yeah yeah so I mean a lot of the stuff that I do honestly has been through

a lot of the programs I've went to but the two things that I do as far as like this isn't the type but like the

two that I do is weekly distressed and then monthly

well how would you say I guess weekly distress and then a monthly large more General list so I'm really distressed

which there's probably 10 15 different types you could do but I do probate pre-probate and inheritance just because

inheritance could be probate probate was pre-probate at once and pre-appropriate well obviously so I try to beat them in

all Corners there so that's why I do inheritance probate and pre-probate and it's weekly distress because I get it

every Wednesday from The Source that pulls it from the courthouse got it so then

on a monthly list what I do is I pull probably 5 000 records for the

texting 5000 for the calling and those are usually those are usually

motivation or I'm sorry opportunity it makes motivation so opportunity like

let's say you're looking just to make cash offers you're not worried about sub 2 or anything like that opportunity would be Equity or it's

fully paid off or owned it for a long time so if they've owned it for a long time and if they

have a refinance you know they've they've appreciation plus paid out so that's opportunity and then motivation

is usually what I'll do like for example is throw vacant on there then I'll go a

little bit deeper to see like if I'm so if I'm I'm pulling a list and I say you know there's 8 000 people on this list

I've learned a sweet spot of of how many records you pull for me anyways it

seems to be about 5 000 or so far five eight nine like it's two two general you're wasting time yeah so if it's if

it is say I have equity in there a large amount of equity then I put the vacancy tab on

there the other thing I'll do is throw at least a five thousand dollar lean on there whether that's a mortgage or taxes

or whatever because they need some type of payment or some type of you know post for payment that they

need to uh make do before you know foreclosure or something like that so

it just depends on how how small or large of an area I'm pulling a list from but typically it's you know opportunity

to mix with one or two types of potential for motivation so

we do a lot of tired landlord and

so it's usually a tired landlord what do you call it not owner occupied yeah yeah

some sort of Lena whether that's a mortgage or some sort of involuntary lien yeah I was I was doing entire

landlords and I was not being getting successful hits because

they're all like well yeah give me an offer or basically I want retail price right you know right yeah and I'm like

sorry that's not gonna happen so obviously you're not a tired landlord so

yeah but I'll tell you what the tired landlords I mean it's Hit or Miss because you never know what their

situation is but when you have that lien on there and all of a sudden you ring

that one person who has been paid in three months five months yes now they

have pain so as for as many of them that are out there that have you know debt

debt on their property but their property is Cash flowing with a good tenant you're still going to get those two three four five deals on that list

where someone's tenant is not you know that property is not performing yeah

and I like those because those are I mean those are I like working those deals because the

sellers are obviously a little more keen to real estate and so yeah it's easier to explain a win-win to

them you know and and as long as you actually provide a solution to them they're they're easy to work easier to

work with in my opinion yeah I mean yeah they're probably you know some of them are going to give you a hard time that's just kind of some

people's personality type but I mean I don't know I've seen a click with those type of people

yeah I mean that that's the thing like you talk shop with them and see how it goes and you know that's the biggest

thing that I've seen on it is like you know

you they know what's going on they don't you're not having to hold their hand

throughout the whole process they know exactly what's going on you know yeah so so yeah I mean that's the two types that

I'm doing I mean it's not too nothing crazy but weekly distressed and then a larger list I just like to go niche in

general just to kind of keep two different you know things there so and one

thing that I I've been on even newer people is mainly about consistency just

because you buy a list and you don't get any hits you just have to be consistent you know and you do yeah and especially

with the follow-ups because you know it'll only be like a five to

ten percent chance that I'll get something off of a list I'll get a hot lead and they're like yeah I want to

sell and I'm gonna give it to you exactly what you want today today yeah

so ninety percent of the time 90 to 95 percent of the time it's not until I

follow up with them the fifth the 10th time so our our average

point of contact so if as far as just you and I and not just a tax but a texting

conversation in itself yeah the the average point of contact we have with a closed deal not a contract

like a closed deal is 17. wow yeah so I mean yeah you're right there's some

that are like I mean I've had them where we went over and signed the contract the next day you're like holy crap but

you get but again it's consistency because yeah we'll get those if you're consistent most times it takes

you know say you pull a list today and this is another thing I learned in a some good education I got last year but

it's return what is it it's it's your your your cash return cycle basically so

the type that you kind of put money into marketing and the time you get all of that money back I'm cold calling you

know between the point in time where I spend you know 500 bucks on a list and and Skip tracing it and then paying

a cold caller and I'm a couple Grand in or Sam you know two two grand in for three months I'm six grand in

it's gonna take three to five months to get the return on that not to say that you won't get one in the first

couple weeks but if you average that out consistently for 12 months and you look from the point until you pulled that list of the time you got the deal done

it's usually about three to five months for say a month whatever maybe a month

it goes by get the deal 30 days goes by that's three months right or you get

somebody who is ready to go or but they just can't make the decision yet because

they're waiting on somebody or something legitimately that they can't yet close

so that's another 30 days so it's third it's usually about 90 to 120 days is 

your return on that cash conversion cycle is what it is

so patience and consistency it sucks like being patient yeah you see in the

same sentence it's kind of weird but like if you learn that and you just know and it's tough but

I mean I it's funny being much more comfortable I am knowing that I'm gonna get a deal or two in a couple weeks or

whatever versus you know the first six months like crap I mean am I gonna eat

yeah I mean really it's going to be a math equation the more people you talk

to the better chance you have of getting a deal you know and you know as long as

you keep on your follow-ups and and keep with those I mean though they will come

and you know it will happen so

but that's one thing I've learned about is just developing a system so

you know for beginners out there they're hand dialing their spreadsheets they're doing all this and things like

that and it's great to start off with but you at least want to think about

even just drawing it out like a flow chart of how you how you want like okay

you cold call the lead comes in where do you want it to go how do you want to follow up and what do

you want to say things like that you know and you you don't have to have all

the systems you can just okay this is my plan for when I can afford it when I do my first

couple deals and I can put money into it you know yeah I would say so like if I could put some input on top of that to

actually get somebody uh something like trackable and measurable our our average so to give you some

numbers as far as getting a contract it takes us uh Route 20 is it 27 to 30

warm leads people who said yes to get a contract got it so if you think about

you know your talk to I forget I think our average like uh person we talked to

to person who raises their hand is like one and like I think 70 something like

that right so that's actually not bad number so like one in 70 to get a warm lead and then you get 27 to uh 30 warm

leads to get a deal and so you ask yourself if you want to deal a month I think if you're just starting off

instead of 27 to 30 you're probably looking at closer to like 50.

so if you think about how many conversations it takes to get 50 yeses or 50 you know interested people you

probably are going to have to pull a list of 5 000 people or something and just Hammer that thing every single day

and so like if you're to call and say you're calling you know say say you're calling you're dialing 500 dials a day which if you have a

dialer that's I mean it sounds like a lot an auto dialer as you know is going to knock out yeah 100 and like you know

six hours and that's just six hours of sitting on a dialer right six hours so say you're doing you know

500 aisles and I said it takes you know say it takes 75

to get you know that's six so that's six people out of that you know and you're doing that every day you

gotta think about the numbers where maybe that you make sense so you can get a deal so I think it's a lot of people

to talk to to get a yes and it takes a lot of yeses to get an actual deal so I

would think of it in that process and how much time you can sit there once you know how many people it takes to talk to

to get to talk to and take two yes and this right here and this right here I just kind of want to bring up is exactly

why wholesalers are important okay do you think a fix and flipper is gonna do all that work

yeah right they don't have that they're like no I want to get my next flip I want to get there I want to turn that

money as much as possible and I want to work on the next flight so yeah you know

you know that's the reason why we are wholesalers that's the reason why we you

know there are wholesalers and that's the reason why fix and flippers should love us most do some want to count our

money unfortunately so you know usually those that want to count our

money I usually don't sell it on anymore so this deal is on the MLS for them exactly exactly yeah so

now you also do fix and flips and buy and holds as well right

I don't hold anything right now I kind of have a different goal of mine for that sure only rental I have is my old

house so I moved down to Detroit here in downtown decided to rent I like the idea of just renting and

not having any maintenance for the home but anyways no rentals just my old first home that I have that fortunately cash flows

pretty well but I bought it when my mortgage was three percent so 

but right now yeah it's all I'm an agent so I do a few listings it's

probably 80 wholesale you know 10 flip 10 list so right I do my goal is to do

and I just started doing this I did my first flip last year but my goal is to do you know a flip a quarter this year

just because it'll supplement the wholesaling yep you know if I can do a flip a quarter wholesale you know

three Deals a month four deals a month you know that's just kind of it fits

my goals fits my capacity as I'm just myself and a couple of va's so 

it's something I can get a good wide base on and then maybe next year scale that instead of doing four we do you

know six or eight in them you know five wholesale deals a month or something but that's what I've been doing this year

so far so that's awesome yeah no I mean it's it's a really good thing to know

where you need to go and what you need do and hey I have goals that I want to do one flip a quarter you know I want to

do three to four deals a month you know so on and so forth so

you know what do you find that is so I mean you

talk to a lot of people as far as people in the real estate game and new

wholesalers and things like that a lot what do you what is the most common

question you get from a new wholesaler how do I know what

a deal is how do you know what a deal is okay I just feel like that's the common

question I get or they say they have a deal and I look at it and it's it's not a deal so yeah

you know no offense that's what I did first too but I think you know the biggest thing as far as a deal goes like I would say I don't mean like I guess if

you're like brand new new yeah who knew there's three things to get to know

what a deal is or three components to learn to understand what a deal is as is

value what the cost repairs are and then after repair value and it sounds super silly

like okay yeah I know that's what I'm trying to do figure out the cash offer price 

I honest to God I I love wholesaling I really do but I think lately it's been

misguided and probably overlooked as far as wholesaling goes

I mean it's a great way to get in with no skin in the game you know try to you know it's the lowest barrier to entry but I would say

you have to take an Avenue to probably put a little more skin in the game and I'm not saying you have to have

a big bank account go out and buy houses but I would do one or two things either become an agent

so you can get access to MLS and understand the actual components to real estate and

you know learn to know what you're looking at running comps pulling values understanding what's what or

try to learn the lens of an actual investor wholesalers we're not investors we're

marketers that's that's all we do is Market but learn what it's like to be investor

what I mean is go to your meetups and learn and meet your private money lenders and the reason I say that is

like check this out so I mean it sounds simple but it's overlooked but if you if you go get some relationships and

priority lenders there are people that you can ask you know what the criteria is

we'll end on a property and they're going to tell you and that's kind of the criteria things it needs for a property

to be a deal so you're going to learn from them obviously you want to reach out to buyers in the area start asking them I

mean I would say to be you know drop drop your ego and have some humility and just ask around like buyers you know

people you can trust and know but um anyways going back to the lender if you make relationships with private money or

Harmony lenders and obviously if um if they lend on it and they're gonna be able to lend on the property you bring

them a property that's a deal and they're able to lend on it think about it it's a deal like they have most

likely unless they're a new lender and their criteria is not good but I mean if you bring them a property and children

are contractor trying to get in a contract and you know they take a look at it ask some questions whatever they're running their criteria and they

say okay yes we'll end on the property

right but like now you know and doing that then a good deal and so if a deal deal for you at

the price you're sending for them right to one of the numbers and why would 5 10 grand more not be a deal for another

investor right so I mean those are things I would do is

condition yourself to get better at knowing what ARV is and what repair costs are what as is value is

um since I've been an agent and I pay for you know MLS access which MLS is just

um that's the database that agents have access to to look up properties are for sale pending closed

um you know to look at what they sold for all that soft little pictures um in in that access right there I mean

I'm able to pull the things so much deeper and look at what things are actually selling for cash like I'm going to go in there it literally just just

like prop stream but you know cops you can start to look what things are pulling for

um you know I mean I guess to know as is value real quick I mean I think the biggest thing is let's stick to the

structure Style if you can at least for the first two comps or probably three you can go

deeper if you can't find anything on the structure style location which location location

obviously like everybody says in real estate and then make sure within a range of

square footage in your build

you know you want to compare a ranch to another Ranch you want some thousand square foot home to 850 900 up to 1250

or so you don't want to compare it to 24 hours per home you know you don't want to check you know five miles across town

and you know obviously if you're an area that's dense enough but and then you don't want to compare

something about the 50s to 2020 right and you got to be careful about Crossing

main roads yes in more dense air I mean like genesis a little bit different we're you know half a million people in

our County versus Oakland County which what two is it 2 million or so something like that yeah right but to

your point yeah like you know like you were talking about Nine Mile I mean yeah as little as those

little nuances but going north going north of Nine Mile is better than south of Nine Mile right

and that's like it it's the same thing in Warren that that's what they actually have a special thing for in Warren south

of Nine Mile is considered South Warren yeah yeah so I mean yeah the location

and proximity matters yeah stuff like that but yeah I mean that's the other thing as far as getting to know what a deal looks

like yeah like I mean I'm sure a lot of people I give myself like got into wholesaling real estate probably from

watching YouTube or Facebook Instagram you know whatever even Tick Tock apparently but

a lot of things you see on there are the people that have been doing it for 10 15 years right or whatever

gurus you see a lot of them who wholesale Statewide Nationwide

things like that yeah that's cool that's good for them I mean maybe one day I'm there I'm wholesaling Nationwide

but I think what a lot of people forget about is playing in your own sandbox in your own backyard

all across town you're like no like do you know what's across Nine Mile you

know they don't so I mean that right there has gotten me much more comfortable like someone sends me a deal

now as far as in Genesee County I'm like what cross streets I'm like what do they want for I'm like probably a little high but I'll check it out you know yeah

versus having no idea or run out of town or like all right let me go back around my numbers like I don't need to like I

mean maybe but I need to tell you hot or cold and then I'll be able to take a look at it so that honestly has has been able to

have me be much more efficient I guess most definitely and

that's one thing that you know I look at and that's the reason why I tell people they're like

well do you do other states do you do other markets and and I'm like you know

I'll look at something but my my focus is the Tri-County area they're like yeah

I'll give my general real estate knowledge but yeah so if maybe you're working on a deal or not but I just it's

not I mean you got to think about your your hours and Day and The Time that there's plenty of things and I'm not

saying to cancel everything out but I mean I mean like I specialize in Oakland

Macomb and Wayne County you know I'm Genesee County and I've picked five four five exactly and and I've actually come

to you on anything on in Genesee County I'm like hey I don't know this area could you tell me

like yes I mean that's that's how I do it so yeah I I mean knowing you're knowing

your stuff is key honestly I think this year if I haven't

done anything different really or okay besides adding texting but I mean I've

been marketing this year the last three two years prior you know Genesee County and now this

year a little bit last year to Oakland a little bit but I mean the difference this year is

that I'm I'm just going deeper in my own market and yeah when I go deeper I now

have seen a lot of these same price you know if it's not the same property it might be on the same street or neighborhood and I know what deals were

were and we're not selling for around there and I guess just like longevity which I haven't been doing it for a long

time at all I've been doing it the spec of time but I mean just three years of being consistent I'm like holy crap you

know what will five and ten years of consistency look like as far as just this is

you know sniffing out opportunity in in Genesee County so it's just I guess it pays to stick

around and you know go deep in your own Market first and I find it funny that a lot of

people from out of town they they look at you're like you can get a house for that price

and I'm like yeah but it's not the best area but if that's what you want if if you're if the

only thing you're looking for is cash flow cheap properties yeah cheap Properties by all means now you still

have to my biggest thing is is this I tell people anybody who's new coming into the

area going into Detroit going into Flint you need to have a good property manager

that that is good in that area yeah I mean all the houses I even wholesale the

like I've never bought anything in Florida they have wholesale in Flint nine times out of ten has been to a property management company

or somebody who was out of town who I refer them to want the same Property

Management Company right so and that's another thing is is

getting to know these people getting going to these meetups getting you know I get probably about three or four

property management companies like talk to me all the time hey you know like I

know I'm off the top of my head I am in my you know in my in my phone and everything and

they're good people they're they know what they're doing and and if if a

buyer or somebody they have buyers yeah they have and that yeah that's another thing they do have buyers so I send them

my deals and I get them added to my buyers list property management and property management companies

are also licensed yeah you know so you know more

than likely they have buyers and you can work with them you don't have to pay them a wholesale fee necessarily but you might be able to pay them a thousand

dollars you know every single time because you can do volume with them or whatnot I

mean there's whatever carve out your own relationship but I mean yeah opportunity is definitely there and that and that's another thing is is

that when you talk to them guess what some of their their property when I you know that's

distressed or tired landlords or whatever they come up

you know yeah so things like that now

tell me a little bit about you know how you know when you're talking to a

seller and you know they're giving you a little bit of a resistance I guess you

know what is your strategy behind do you try to be as transparent as possible

like I like I mean I guess run me through a little bit of when somebody's trying to be like oh you're a

damn wholesaler and and you know like I've actually had that a couple of times I had one guy say

I don't want to sell to investors at all I want to sell to somebody who's going to live in the house

I mean that person there's nothing I do with that I mean yeah that's fine am I here to convince you or waste

your normal my time but exactly the answer your question on that so

honestly this a lot of things I've changed up in the last six months if anything this has been my process so my

process is is a little bit more lengthy as far as

the initial cold call cold packs we bring after that they push them over the

first conversation I have with you is just a follow-up call hey my partner we've got to see on your property here

do you have any interest on that property now or in the near future oh you do okay and I go into telling them I

basically set the stage every single conversation we have with them so we have we have a first it's a follow-up

call second it's a process call so processes initially also asking you the

four questions trying to dig for that motivation Etc et cetera if you are able to walk through that whole process call

with them after that we formulate the urgency and the next call is the offer call

but every single every single one of those calls all three four of those calls is basically

the first thing I'm letting you know is the time the call will be hey do you have five maybe ten minutes on for this

okay um I give you the agenda and the reason

and then the opportunity to say no and that's on every single call so it forms

basically it lets you it it's like the thing I hate when people cold call me about whatever is that you call me out

of the blue you don't tell me why you're calling you don't tell me who you're with and you

don't even tell me like how long we're going to be on this call in the agenda you just start firing questions away at

me and I'm like you didn't even ask me if I was you know if I had a couple minutes or if I wanted to ask your question answer your questions right any

questions and ask you and then why you're even asking me these questions like you know because then I mean I feel

defensive like I'm going to give you some answer that you're going to use that information to use on me

um every single call um and I I don't know if you're looking for this in depth of a process but I've

I've learned that through the the the process if you make a solid process and I'm not saying if they make it a long

process but the commitment from them the level of commitment obviously is deeper

and deeper the more you go down that path with them and every single time I go on that call it's basically that you

know time agenda the reason I'm calling and build and then give you the option to tell me no

letting you know that's okay it gives people a better frame of mind and brings their guard down because

they know what's coming you know it is and the reason you're asking the questions and so I would tell you honestly

the only resistance I really get is on phone call one yeah and then phone

call two which phone call two is that if we're taking you down that road or you're just gonna get put on the I don't

know a six month follow-up because you made it to the second phone call so we'll just probably in six months

you know if we get to the third call and something happens like I don't know that something fell out or whatever but yep

I mean that third fourth that third and fourth phone call is usually to figure out

what kind of offer we're gonna formulate and the only reason you're getting the fourth call is if we're giving you an offer on the third call we're trying to

figure out the only other thing that is if you're able to make a decision right now is there anything right now that's holding you back

or no we don't even ask holding you back but you know once you got the offer you know what's the next thing you have to

figure out if anything and if they tell us oh well you know I got you know whatever wait for probate you know

whatever okay so we know that even right now if we wanted to and the perfect price came you can't sell we're not

giving you a price right we're putting you on a consistent follow-up for three months to become your best friend so that when the time comes it's not a

question of if we're working together it's just a question of how we're gonna work together if I'm going to list your property I'm going to buy it myself sub

tube cash on sale it flip it whatever and so that's honestly how I've been

able to be a little more efficient with my time knock down the resistance at the end because I everybody hates and you

work on this deal forever and then you get to the end and it's like we're way off on price or they have some objection

that we never even talked about and it just not match all that stuff out of the way so that the point where I mean

you know I'm going to your house because word is we're gonna we're buying it yeah

so that's one thing that I do actually when when I follow up hey

you know like hey my my my partner actually gave you a call

the other day about your property she said that you're interested in selling it do you have a this is just a

follow-up call on that do you have a few minutes to talk mm-hmm

if they say no great when's the next time I can reach out to you yeah you know I always ask them hey if

you were me what would when would you follow up with you next like one movie you know good time for me to actually

reach out to you then yeah even if they say no I'm not selling

right now I say okay great is it okay if I follow up with you in say three months

Armada and if I if I say a month and they say well better give it six months okay

great I'm scheduling a follow-back up in six months yeah I always ask can I always leave it up to them too to see

what they say instead of ask is okay if I give you a call in six months instead of them saying yes or no I was trying to

ask them to get an answer out of them I was just like you know okay cool you know hey if you were me

you know is there a time that you maybe follow up with you in the future and they might say next month oh shoot okay

because like you're thinking six but they might be thinking like not right now because literally at the moment they

got three calls that day and two weeks later they can get a call from whatever and they're like yeah taxes are due or

probate done they're like Oh I thought that was gonna be three months and it changes so I mean I always I I mean I

used to always say okay it's okay if I call you in six months thinking because if I push the envelope that far out they're okay with it instead of me can I

call you in 30 days no like so I always just say if you were me you know is there in the future that

would be okay to follow up and they might say yeah you know and whatever they say I always bring it I always set

it up a little bit early yeah you know do it like 25 less you know what I mean

so for sure yeah so like if they say okay call me back in next month I'm I'm

scheduling a call back in three weeks yeah it's that's about what we do is that two and a half midmark you know two

and a half weeks on a Wednesday or depending when we talk to you three weeks something like that yeah exactly so

now you said you have virtual assistants are they both are they out of

the Philippines at the moment both in the Philippines both I don't know how that goes as far as

education but college degrees both have worked for Verizon BP Oil I

you know all Allstate I'm sure or Farmers Insurance I think

but they've got great English they know our culture as far as a little bit of slang whatever terminology yep and

they've had interactions with real estate so I got fortunate my VA actually recruited the other VA I paid

him no opponents to go find some friends and I interviewed them because I like he's been with me for

a month and a half and I'm like or a year and a half and I'm like well if he whoever he's hanging out with has to be

a little bit like him as far as he works hard he's loyal and I treat him well I know his family's name everything like

that you know so I'm really good to him and I have culture in our I mean as much culture you can have

with va's but I mean you know like he's not just some VA that works for us whatever like I don't know I treat him I

treat them better than probably most people do honest to God most definitely so there's a question from Lewis over

here if he finds a creative Finance deal is it worth contacting a lawyer to draft

up the contract

yeah so if I find a career oh what was the question if we found a creative deal is it worth contacting a lawyer or

Jeff up the contract I mean yeah for sure I mean once once your lawyer dress up that contract you can take that

template and probably use that to draft up the paperwork but I would say it's a very good idea to have an attorney or a lawyer on your

side I wouldn't say it's a lawyer more so like a real estate attorney yeah local real estate attorney is great

you know you don't have to use them for everything they're obviously you know a little expensive but they're worth it you know that it's going to be

exactly what you're looking for so if you found one that you you know thought was worth it either a you're going to

find a title company that might be able to have that paperwork Pro you know that that processor might be able to do it for you

or B you'd find a real estate attorney or C if you go into Facebook and you look

at pacemorbies create a financing Group which in public there are

creative Finance transaction coordinators that you can pay they have their own Services just transaction

coordinating and part of that is drafting up the documents for you so they will which I've paid actually

I've only done two two creative deals but the the first one I did actually inside of the sub 2 program

I found somebody who has just a trend create a financing transaction coordinating company and that's all they

do and I paid  200 bucks I mean an attorney is 300 an hour I

pay them 200 to get all the paperwork together they just ask me all the questions of the deal they did that they

sent it on DocuSign and sent it to my seller for me so

you're gonna pay at least two 250 300 bucks to a good attorney wherever you're at for sure and that's per hour

so you know yeah I would definitely I'm not saying

don't you just you know choose what you would think is best for you so I I definitely recommend you know using a

you know using a transaction

coordinator from okay yeah transaction coordinator from the sub 2 crew

you know it's and you don't have to be a sub 2 student there's a public one I think like I said I think it's creative financing by

Pace morby or something like that it's it's you know it's out there but there's people in the sub too like I'm

in that group so there's people I guess honestly if you want you know I can try to connect somebody to this fill us up twos here as well yeah I'm local yeah

oh see look at that so this is in the Facebook group this is Cheryl Lynn

Turner so in our Facebook group here fellow substitute student here as

well and she's a local practicing attorney great discussion tonight looking forward to working with both of

you in the future so by all means Lewis if you go over to our Facebook group Metro Detroit off-market Real Estate

Group you can be able to find this I I find this lady in there and work with

her so by all means but yeah I mean try to connect as

much as possible so I I I'm not a sub 2 student and

you know I may be eventually but at the moment I'm not but Carson here is

and I definitely highly recommend everything that I've seen about the sub tube group and the the program the

mentorship it's all 100 worth it so it is I mean it's more so yeah whatever you

mean you get whatever you what you get out of things what you put into it but yeah it's a good community of people

there's they just started out of meetups here in Michigan we've done them down in 

Ann Arbor I believe yeah Gabby has put them on for us I don't know she's in

here or not but anyways some two students only

yeah I mean that it's not super strict I brought a couple buddies that were not in sub two I mean the more the merrier

but they're they're full-time real estate you know guys so but well next time listen come get me

out I will so but yeah yeah most definitely

so with you know kind of back to what we were talking about as far as you know

talking with yourselves what is one of the I guess one what's one of the best 

objections that that you get from a seller you what what the biggest objection

or the biggest objection I get yeah oh

if it's objection you know that's something I probably

have to track or measure but if it's not price it's it's

I think it's understanding the process I mean I'm trying to think of the biggest objection I get honestly I'm trying to

think of a spot what are the summer you get maybe I'm trying to you know help yeah so so some

of the some of the ones that I get is obviously the price that's the biggest thing right but besides the price it's

yeah I'm not ready right now I still want to sell but I'm you know like I

have one today like that I follow up with her every single Monday because she gets off she's

off work on Tuesdays and Sundays and she goes I I'll if anything I'll be

at the property on a Tuesday it's an inherited property and so I call her every single Monday

and say hey you're going to be over there tomorrow I can come meet you out there oh I still got to clean it I don't

care about all that stuff like I can get you an offer no problem I can look past all of that you know

and so every single Monday like you know it's literally come down to

you know I call her up hey this is Randy oh hey Randy how's it going like I'm before I even I'm not even talking about

the property I'm talking about her you know how her week was how her weekend was stuff like that you know but the

biggest I won't even call an objection but it kind of is is it's just the timeline

my thing about objections now honestly is just that upfront process of of

trying to figure out your level of motivation because yeah at the end of the day then too it's

really an objection it's more so just handling their their situation and so a lot of the situations that

we end up you know closing on or are just things that take time whether that's

you know probate divorce I've had people where they're

they were letting their other spouse live in the property with their kids until their kids you know were out of school and so we've waited like school

years we've had situations you know where

tenants are going to move out in two or three months but they know they're not going to lease again the property needs work and so when they're done it's

vacant they can sell it then it's always I would say the biggest

you know that's why I'm saying I don't want to even really call an objection but like the biggest thing for us is

just time yeah time and timing because

things change all the time too I today I guess I had a guy that I just talked to

two weeks ago that wanted me to he's like yeah I want

you to come over take a look at the property and I was just like well cool I said you know that's cool is because I you know the reason I'm contacting is

because we just sold property or two we'll come by the next one you know

so I don't care I mean I can I always tell people this I can you know check with you in six months that's cool too

but we're looking for the next property we can close on in the next you know say you know 30 60 90 days you know

if we came over there and the price came to it I mean is that something you're ready to do I mean I I don't I you know

I can always call you in six months and I always push it out I always yeah I would say as far as like objections go I

think I know so more and push things out to real people in oh got it and not in a

way of like you know oh why haven't you listed with a realtor maybe you should just like I don't do those obvious

things anymore because then it's just like well then why the hell did you call me but I always just like do that like lost lost puppy type thing or like

yeah you know giving you way too much benefit for the doubt type thing to where you correct mean or are you

tell me otherwise because I feel like a lot of people they like to correct people but they don't like to to divulge too much

information so I always say things were you know that I try to talk incorrect to where they're like no no no like I would

sell the next 30 60 days like oh really okay well you know tell me about that like you know you know like what was

that right and then they might tell you so I'm always just kind of playing I

don't know I'm trying to play Checkers chess with people a little bit not too much but I just you know I

don't wanna I'm not here to chase you and you know make you feel like your

property's gold and you know that's why we're calling it like we're calling you because we're calling the neighborhood

we're calling the neighborhood because we're looking for a property today that's fine

we're always looking for properties but you know the reason we'd be coming over is because we're ready to buy exactly so I just had the stage a lot of

times back to set the expectations all the time yeah and then just tell them like hey

oh I always tell people too like oh you know any people I talk to you today I'm like nobody wants to sell to me right

now like you know like totally understand if you say no like you just be the next person to tell me no right

right you know I don't know I just I guess I'd come with being comfortable like first I

was scared to have anybody tell me no because I was gonna lose a deal but now I've just realized like dude the more I could get through those the quicker the

more I can get to the yeses and then the maybes or whatever and the time frames like that's just when a good badass

follow-up system comes in place yeah 100 so that that's actually a good

thing I'm actually going to be taking notes myself there so you know because I always bring that

up hey well if you want that price you know that's more retail you know

you know I know a few Realtors and I can you know that are very trustworthy

and I can get you set up with a realtor you know yeah yeah so yeah that's the

like okay I don't know how much time we have left but not like to sum that up the reason I became I mean not one one

of the reasons I became a realtor so I can I I do like helping people out no matter the situation like if we can list

your property and you're cool with that you trust me you like me like let's listen to it that's cool I'm all about maximizing my deals and

so one thing I do for people is I walk through with them and they say I want

150 this is how I lock up the Hazel Park deal he wanted 125 000 for it okay and I

was just like you know I think that's totally reasonable I think if you list the property you got the tenants out there and we

cleaned it up and we put a lock box on it and people were able to walk through the property and homeowners have the

opportunity to say okay cool I can make this my own I think you can get that all day long he's like really I'm like yeah

that's a great number he's like yeah okay I said so let me show you what that would look like and I sent him to something called a seller net sheet

which title companies provide this but if you put the property address in 

they'll pull up the local taxes and it'll prorate everything yeah whatever the point is if you tell them a seller

net sheet provided by a title company at 125 minus their prorated taxes

closing costs mortgage and everything it'll show you what they're actually walking away with and so there's 125 that he wanted to

list for plus the closing cost fees and everything was more like what was it 

well here here I'm sorry bad quick math but that's all right

ended up being about 112. we'll lock the deal up for less than that

and it was easier because now we weren't 25 000 off we're like

maybe 10 grand off and I just asked him you know hey totally understand where you're coming from so if you want to get

this you know just know we got to do a b and c if you're cool with this just know

it we don't have to do anything at all and then I just shut up and then I let them in their own head say okay yeah

some to 10 grand more but I got to put maybe a little bit of time and effort into it and then I'm not sure if I'm

actually gonna get it yeah yeah cash sounds good or if they don't and they're like let's go for that

okay let's go for that so then it's just easier to let people go in the direction that they want to go

and I can just perform my best for them because I tell them too which is the other thing where we anchor back to us buying it creative over cash or

whatever like I am going to serve you at my best no matter what we do here that being said

once we go into listing the property my offers are off the table I'm not

going to do that and then Circle back onto my offer and then you question me if I perform the best for you on listing

the property or another broker sees that it's sold and you know 

I'll end up buying it and now my my credit or my my character is questionable yeah legally Legally you

can't do that yeah yeah oh see okay I didn't even know that well good thing I'm good thing I'm a moral person well

because because the thing is the thing is is it's ethically yeah well that's what it is and I mean I I don't I'm not

gonna put myself in that position but then two it just strengthens strengthens your your decision as far as well shoot

here he is right now making this offer yep I want to see if we can list it but

if it doesn't go then and then he's not around to buy any more of an oh my gosh I gotta find another investor

and not everybody does that but the people that do then it just solidifies how much more of a deal it actually is

and everybody else it pushes them in the direction they want to go and I hold their hand and we go that way or we don't do business that's fine

was meant to be but yeah I mean that that's what I do that that's awesome though so 100 you

know completely agree with that and you know the good thing is you're

showing them and I kind of do that a little bit and I let them know hey if you go with a realtor it it's on average

about nine to eleven percent to sell your house okay on on average and I say that

because it depends if they're going to come back with concessions they're going to come back with what you know things

that you made 100. realtor fee and your closing costs like there might still be two three percent

concessions exactly well four or five or so I've seen I've seen six percent so I mean yeah I would say definitely about 10 that's what I did that 125 I used 90 of

I think it came with about 112. but instead of doing that and explaining that to them I'll just send

them the sheets and they'll look at you know actual closing costs and everything I just I like to paint a picture for

people and then let them interpret what good is good and what's bad is bad and what's worth what to them instead of

telling them see now we're only 10 grand apart well now I'm trying to sell you yeah instead I'm just trying to inform

you that's interesting so yeah and I'm actually dealing with one

seller who's a hot it's a high-end property and you know they want

X number here but because it's a higher end property the holding costs and everything alone are just astronomical

so it's like I gave them a one down here and like I can come up a little bit they

gave me the Rock Bottom number which is up here you know and I'm like it's just not gonna work you know

I mean that's what I tell people about too is I tell them I listen you think

I'm you think I'm rich you think I'm buying these 150 000 properties my money

damn fool you know yeah I use private money you know just like everybody else and even if I didn't here's the thing

you know if I'm not borrowing money and paying interest on it let's say I am using my own cash it's good it's nothing

it's sitting there not in a savings account at least making something percent if I buy this property with my own cash it's making zero yeah

so I still have to account for the fact of you know and you don't have to get into the technicality of it like that I mean however you want to tell

them but like it's like really you buy your own cash like you know economic loss like you're in current economic loss like you're not making any money

you're you're losing money on the you know deflation of the the dollar is every you know month you hold on to it

but it's I mean it's you know it's it's a cost right or someone else's money it cost

me to use that money and you know unfortunately that bakes into the cake here of the equation I'm putting

together and so I have a question that if you come

across and you come across a deal that maybe either got locked up too high or

you're not getting any interest on it and you can't really renegotiate or you

want to renegotiate but you really you got no feedback from any buyers right

you don't have any power in every negotiation I mean exactly so basically you're forced to let the

property go you know so how do you have that conversation with the seller yeah

fortunately I've only had probably in the last three year first year I had some

properties to follow contracts and we'll talk about doing last year in this year I think together honestly I think I've only had about I've had less than five

deals with five contracts that's awesome one was we didn't see the property yet

we went there it was not what they told us couldn't renegotiate

that's on the seller yep the other one pipe burst when the property was vacant

and we were told them not to dude honestly I mean I'm trying to think

 oh you know what actually yeah the December I had a property where I locked it up too high and I

couldn't move it but I actually I put an inspection period on it because I was unsure so the

thing is right now is because I'm in Genesee County like I'm like now I mean if I lock up a property like I'm gonna

make a commitment honestly just to force myself to get better but I have a commitment to myself that I'm going to be closing the property

just just either I can flip it or I can get a good enough price or whatever it

is but for those ones I don't I put an inspection period on them and the only reason I'm I say that is because if I'm

not sure about an area like my first deal that I did out in Oakland County it was or not Oakland County I think it

was Wayne where's Inkster Wayne County Wayne County I didn't know it so I told the seller I walked a

little more caution hey cool yada yada I would like a a small inspection inspection period on this property I'm

not gonna bring you know I'm not doing the whole nine yards but you know I am new to this area and so

I would like secondhand opinion for my contractor I did that they were fine with it and

again I think it gauges their level of motivation because they're like man you can't do all that you know if you don't know what

you're looking at you know then you know you don't need to buy my property well then obviously I'm not that motivated they're looking for someone who wants to

buy their property and you know they don't need someone to buy their property so I don't know I mean sorry for not

having a quick answer but no that's fine you know if I look up a property it falls out of contracts because I don't know the area but because I don't know

the area I'm putting inspection period on it so it's not of his hard feelings with somebody and it doesn't tee them up to

think that it's a done deal once we sign the piece of paper like hey just so you know here I'm getting an inspection period which means I would love to move

forward I'm planning on moving forward but if I don't move forward I told you that there's a possibility I'm not moving forward

you know I wish that I could just do that on every property and close without inspection period and stuff like that but like I mean

their inspection periods are super normal man I mean yeah I mean 9 out of 10 Properties or whatever how long is

your marketing go through inspection period even cash deals sometimes yeah how long is your inspection period

I negotiate with that with the seller usually I my in my contract it

specifies unless otherwise said inspection period is 10 days that's just what mine says if

somebody moans or groans about it and we figure something else out but mine is just standard 10. and then that brings

me to another question is do you put down EMD I do but again an inspection

period I get right back okay but if I'm in Jersey County nine times out of ten

I'll lose an inspection period I will put a thousand dollars down okay 500 bucks usually yeah it's usually about 500 bucks

okay it's a hot deal and that seller like is getting multiple calls and stuff like I'll solidify my offer with

letting them know like I'll put a two you know put two three thousand dollars non-refundable bag meaning if I goof up

you're keeping my cash and find another investor so I will do that but that's because I'm in Genesee County and I know what I'm

looking at so I guess I teeter-totter right like I either you use my my advantage because

I'm in my own backyard and I Full Throttle it and tell them I'm gonna do ABC or if I don't know where I'm at unfortunately I walk a little more

caution but it doesn't hurt anybody's feelings because I already told them what I'm gonna do you know I realize my vantage point

here versus the guy in Oakland County or Wayne County who can just go for it and good for him I mean let's get more deals than I am but that's why I play in my

own backyard yeah so with that like for my contracts I 

don't have an EMD that I put in there so you know so the inspection period is kind of like the length of the contract so yeah everyone does a little bit

different much at all really they don't care but yeah you know yeah now it's different when I'm

talking to an agent you know well yeah you gotta walk away yeah you got to walk how they walk otherwise you know there's

they're controlling the deal awesome so 

you know is there any any last tips that you give for new wholesalers out there just trying to get started working your own back I mean unless you live in you know the middle of

nowhere but I mean work out your own backyard nobody knows it better than you do if you're not if you don't you

know actually want to close on properties I would at least put yourself and train your brain to be in the

mindset of an investor you know go out talk to investors learn the costs of private money so get

you know I mean eventually I'd imagine both of us want to eventually flip Properties or buy rentals ourselves so

why not start that practice now and start learning hard money lenders working with them or at least running

deals by them you know if they fit their criteria to lend on then you're getting better at

looking at knowing what a deal is and then from there just learn to have your your I call it our perfect

seller appointment but that's just you know setting the expectations up front yeah telling them how long you're going

to be on the call or whatever the conversation is going to be whether that's in person the agenda

slash results of the conversation and the opportunity to say no hey if

this isn't for you right now 97 of people I talk to it's not sorry if

it wouldn't be you know that's completely fine you know so yeah I stay in your own

backyard and and and you know you know start start reaching out to your lenders and your buyers or people who

are buying and start to become friends with them you know I mean it's give and take you know if those people are giving

you information and helping you out legitimately you know make sure you bring your deals

to them too in return and that's one thing is it one thing if you are doing your own backyard I'm

going to tell you the best list okay to go for all right on this is the 100

guaranteed best list to go for it's called a driving for dollars list yeah for sure go out there you know it's

distressed because you you view it you you you know that there's something going on whatever it is and you add that

to a driving for dollars list and sometimes those those deals those houses aren't on any lists or something right

exactly so they probably don't everything's paid like say it's in a

vacant property and but the owners he ate they're keeping up with the payments

they're keeping up the taxes they're keeping up with everything you know they have a lawn service that comes in maybe

once a month just enough to keep the city off of their Bay you know

whatever the case may be and you go in there and you see some whatever

things may go through that it looks distressed and you add it to your list guess what now you're the only person

contacting them for sure so but

I really really want to thank you for coming on here with me thanks for having me again yeah I really appreciate it the

one thing I like about bringing somebody out bringing somebody on that we've already talked with is we don't have to go through the origin story how you

started yeah it was good we had a lot of talk about so it was really cool I I really do appreciate it so yeah

everybody wants to hold me my number's there feel free give me a call awesome and then do you need help with any with

anything else be from our audience or anything like that at the moment no I

mean you know if you want to get a hold of me as far as getting my buyers list I'm like I said I'm Genesee County

a little bit of Oakland not to be rude but I also want to waste your time like you know I'm not

I'm not in Oakland I'm not in Wayne County I'm not in you know the thumb I'm not in Lansing I'm out in Saginaw

you know there's people out there but you know if if you're in your if you're in the same neighborhoods I'm in

I'd love to work with you so that's awesome so what I'm gonna do is I'm gonna bring it down Carson just hold

on and we'll talk in a minute so alright cool but I

awesome that is really good happy happy to have Carson here and

for anybody else you want to get on my buyers list you can go ahead and text me if you want a JV with me go ahead and

text me as well and I will we'll be able to get together the good thing is

on the next podcast we're going to have Ronald Walker with us

again and we will be talking more in depth on a lot of different things I

believe it's I think one of them is how to make 12 Grand in four weeks so 

that's something that he wants to talk about so I'm happy to have him and stay tuned the next one will be in four

in two weeks next not next Monday but the Monday after so we will be

marking so keep a lookout for it and until next time let's all do deals together

Real Estate Talk w/ Randy Stedwell Episode #9 | Terry Penny Investor, Wholesaler, Entrepreneur →

On Episode 9 We will be talking with Terry Penny who is known in our local Community of investors and Wholesalers to being a great business woman and all around Entrepreneur.

After graduating from business school at age 18, I was headed for the entrepreneur life. At age 19, I started a successful legal service and have provided services for over 200 attorneys in the Metro Detroit area. I enthusiastically entered the real estate industry at age 23 and have never looked back. Real estate has been my passion for over 30 years and I've mentored several new investors across the country since 2001. I've had the pleasure of providing consultations, corporate structuring and business & real estate financing for my clients. I'm a mom of 4 boys, and after the passing of my husband in 2020, I felt the need to obtain my Life Insurance license to help families with their estate planning, and to avoid the financial burden when a loved one is lost.

www.TerryPenny.com

www.CorleonRealEstate.com

www.PennysVacationRentals.com

www.CorAgentLegal.com

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

So real quick before you did that

and your your origin story like how did you get into is that he uh he made an age joke the last time we were I'm

gonna I'm gonna use that kooka

hey everybody how's it going welcome to another episode of real estate talk with

Randy Stedwell we just tried out this intro that came in uh you know so let me

know what you think in the comments so who we have for episode nine is Terry

Penny honestly I've seen her at all the meetups and I I've looked up to her as

well I see a lot of stuff that she puts out so I'm very very excited and very happy to have her on this show she there

there's a honestly there's probably nothing that I if it's real estate

related she's probably done it or getting into it so with that being said if you have

questions throughout this podcast please put them in the chat I we will answer them as we go you'll

get whatever you'll get my opinion on it and as well as probably most importantly you'll get hurt her response to it so

again put them in the chat here whether you're on YouTube or you're on our Facebook Channel all right uh try to

go to our YouTube so we can get some get the algorithm more uh going in there in that direction and I can actually post

your name in here otherwise like I'm just gonna have to say your name when you have questions

with that being said welcome Terry Penny how you doing hey Randy how you doing awesome awesome

so I'm very excited to have you on the show all right

I know you you've seen some of the shows that we've had uh and I'm very happy to uh you agree with it to be able

enough to be able to come on and and share your experience with this so good

to be here glad I'm I'm I you know you've got you've had some great shows I've watched a few of them so thank you

I really do appreciate it you're a very busy woman so  I understand that you

know and today we have we uh re-accommodated for being on Thursday I

want to apologize everybody that this is normally on a Monday night at 8pm we're

doing it Thursday because I had some personal stuff happen I don't want to get into exactly what it was but either

way you know everything's taken care of everyone's safe no problem so I you know

with that being said uh thank you Terry penny for having

I you know for accommodating the the change and everything like that and what's actually really cool is your your

name is actually my mother's name so Terry yeah so

a lovely woman she is she's a very lovely woman very lovely woman so

anyways tell me a little bit about your uh how you got started and

you know how you got into real estate in general okay

we gotta go back more than 30 years I got my real estate license in 1992.

so it's been 31 years I started with real estate one

I'm currently with exp okay and update I just passed the broker's

exam on Tuesday so I am now a broker and the

reason for doing that just to Fast Forward Thinking is I'm opening a property management

company so I've been managed my own my own properties for 30 years and I'm

partnering with my contractor who's also been in construction for 30 years so right but but to answer your question

yeah I got started as a realtor in 92.

my first year so it was so different back then because I was at like a 45 commission and my

last was literally a book that someone had we didn't have the internet back then right so right right come into the

office and actually look through a book of all the listings and everything and we would submit our offers standing at the fax

machine so so I probably I think I lost more money than I made my first year

and then I got into learning about investing and that's when it changed

really everything I wasn't a very good realtor and I'm not a good realtor now 30 years later

because off Market is my comfort zone I I have access to the MLS but I

really don't do anything with it other than checking comps doing CMAs doing uh

research for my own investing or for wholesaling so I've been

wholesaling for over 30 years but off markets my comfort zone even though I'm licensed got it so that's another reason

why I like bringing it on and why I follow you is because you're a fellow wholesaler so uh you know first of all

it it's really cool on that and how did so when you got

into real estate you you started as a bro as a agent you said right yeah and I

was 23. You were 23. okay and you weren't really that great of an agent

fight anyone before I started okay yeah how did uh so how did going

from being an agent to wholesale or the next step that you

did so I I realized once I started learning

about investing how different the realtor world was from the investor

World so in the 90s

so my husband uh stayed up a lot later than I did and

he was watching the late night infomercials that came on and

I don't know if anyone's listening is old enough to remember the late night infomercials that came out at like three

o'clock in the morning and there was this guy with a mustache in Florida that

was talking about fixing up houses and increasing the value and you know making

rents and it all made sense and so my husband was like you gotta watch this because you already know something about

real estate so you know this all makes sense to me and so we were so you

know fast forward I understand the seminar circuit now because we end up working

for the company but back then you know they have the free the free seminar not webinar was no

webinars it was a seminar you actually had to show up in person right and so there was uh the free seminar and then

they sold you on the three-day weekend right I mean this is the same stuff that's been going on for decades right I

mean it's still going on one of the courses I bought was from Carlton Sheets if anyone remembers that name okay so

the no money down stuff so I'm really dating myself but it was so different back then so

anyways we showed up we did the three then when they did the three day and that just taught you just enough to

be dangerous right yeah and so then they upsell sold you on the bigger packages and and so forth so we spent

over thirty thousand dollars for our our education package but it was worth every

Penn any and I always even people that I Mentor now I tell them you're either going to pay for your your your

education now or you're going to pay for it later in lawsuits or or damages or or

loss losses because you didn't you know how to analyze the property you know and

you're going to lose money on and then and then of course this real estate thing doesn't work because it didn't

work for you because you didn't get your education before you got into this business exactly but anyway so I 

understand the value of education and so we had no problem spending the money

you know and we were taking boot camps which means you actually got on a plane and traveled to Georgia and Texas

and Florida and and you know where are they they held the boot camps but it was

three or four days of nothing but information about just that subject whether it was you know foreclosures or

you know the rentals or you know uh

lease options or anything that you wanted to learn about but so we went through this intense training

but I really felt like you know I had a PhD in in real estate when we were

done and then when we when we went through all the

classes and when you got all the education and everything we were assigned a mentor and and stuff

we had made a goal to buy

10 rentals by the end of that year and there was I think February so it was we had less than a year to accomplish

our goal and so the reason for our goal was

uh because at the time I've always been self-employed I've been self-employed since I was 19.

so I I've never been into the W-2 world that I've always been I wouldn't be a

very good employee but but anyways I've always been self-motivated

I've been on my own since I back up a little bit I graduated at 17 I

graduated from business school at 18. self-employed 19 a self-motivator had to right

So anyways my husband was working as a corrections officer

for a maximum security psychiatric prison it's very stressful yeah and so

our goal was to accumulate enough parentals so that the uh the cash flow

the total cash flow would substitute his salary at the prison

yep and then we would be financially independent basically off of our rentals and he could quit his job that was

our goal and our goal was to have it accomplished by the end of the year so

with the organization that we were with was Russ Whitney again if anyone's old enough to

remember Russ Whitney that was the guy on the infomercial with the mustache but we're still friends today

but anyways we went through the all these

intense training and and everything and in the organization it was important to set goals and so we set our goals and at

the end of the year we accomplished nine rentals we didn't accomplish 10 but we did get nine by the end of the year

so because of that the so so Russ's uh

uh Whitney education they were bringing they were the largest real estate education company in the world they were

in seven different countries okay they were bringing 60 000 new students a month right so over 700 000 new students

a month they would choose five people to put into the Hall of Fame

based on some and so forth so my husband and I counted as one of those five right

because we were cut that's awesome and so we made Hall of Fame based on our accomplishments and everything and

so that kind of in such a large organization kind of put us in

a real good position because that's where Russ hired his trainers okay was from his Hall of

Famers right because you can't expect someone to teach you

how to be successful if they haven't been successful themselves that is correct yes if you haven't successfully

done a lease option from point A to points you can't tell me how to do it if

you haven't made a million dollars you can't teach me how to do it right so it's important that who you give your

money to that teach you something has actually been there done that and not just a couple times right so

because every deal is going to be different and you know how to you know you got to know how to get through the

obstacles exactly so anyways so we went on to be mentors for his company

and did that for about seven years or so I we our children were young so I was

doing more of the phone mentoring and and uh at that point we were having emails and stuff

which was what dial up right I mean yeah so but my husband actually

uh traveled and he'd spend you know about four days with a student in their own

backyard driving for dollars getting their power teams set up actually

they're putting in offers sometimes actually got an accepted offer before he flew out of town so it was it was very

very valuable training and that's how like since 2001 I've been mentoring people as well

based on that same you know education based

which I don't know nowadays I it kind of seems to be a little watered down and

stuff and everybody's a guru because they've done a few deals right so anyways  I just I just make

sure people mentoring is not only what I do and stuff but I do I like to help people get started

I'm real big on learning different strategies because when when I approach

a seller I've already analyzed the property four or five different ways and so when I get

to the seller I'm going to present them with three or four different offers make them let them make the decision of what

works for them so that they feel like they're more in control and not being taken advantage of which I already know

every one of these that I'm presenting is going to work for me one way or another right but like for example

you know if you don't know subject two you might be passing up some deals

because all you know is wholesaling so that lowball cash offer isn't going to work for your seller and because of your

lack of knowledge you you can't take that deal down where I'm going to pay them in behind you and really dig into

what the seller's issue is so I can solve their problem because that's what

this is mostly about it's good when you can make money at the same time solving the seller's problems most definitely

and real quick I just want to interject here you hear everyone out there you

hear talking about all these different options subject to lease option things of that nature

keep those in in your mind and any questions that you have about those

please go ahead and put them in the chat and as we talk about them we'll get to your question and we'll be able to

answer them so mainly from her perspective since she's done them so uh

you know uh with that being said I 100 agree with you I'm here to try to

help as many people as I can but I don't pretend that I had 10 years experience

in this I don't these are I'm very upfront and honest with the experience that I do have and

and if you're looking just to get started and and run the numbers things like that by all means you're I'm an

open book so but I think there's a huge tremendous value in pain for a course

because you're taking all of the mistakes that they went through and said

hey don't do this do this do that so on and so forth go into this trajectory if

you want to hit that now if you don't follow that's on you but at least they're giving you a guideline

and you're paying for that you're paying for the mentorship you're paying for the

the course and so on and so forth so I really appreciate that just want to interject that a little bit here but uh

go ahead and continue on sorry yeah they could be costly mistakes oh yeah you know it could get you sued oh yeah you

know this is not this is no one wants to be sued okay right

right so I've never been sued that I'm Gonna Knock on Wood because of that

because you can be sued for frivolous things and it could just cost you a tremendous amount of money for being

just for being sued okay yeah I mean it's it's it's hard to go unscathed

after you've been in this business for a while even if it's frivolous right or wrong you know you're going to end up in

court whether you're a defendant or a plaintiff landlord tenant you know I mean it all kinds of things is it it's a

litigious society and we're in real estate which is very contract law heavy 100  I agree with

you on that so so one thing I wanted to get into that so a lot of people ask me how we

accumulated so many problems yes properties so quickly we were doing the Burr method before

it had that little catchy little name right so before it was a thing right

right I mean that's cool so but that's what we were doing if if you follow that

you understand it's by right rehab rent

refinance repeat and rejoice Right add another hour on there but we were doing that

exclusively using a hard money lender so the the reason we were able to move so

quickly now now keep in mind again this is in the 90s interest rates were double

digits so yeah because the interest rates are high right now the sky is not falling I try to let the newbies know

you have not seen a buyer's market you've not seen High interest rates we've been spoiled right the thought

this guy's not falling because we went to what six percent now right it was nine ten percent I saw lean contracts at

14 16 percent so anyways our hard money lender who we

used exclusively was lending 65 of the ARV okay

10 points in 18 interest with a six-month balloon

and we used them all day long now in points yes 10 points now here's the

difference here's the differences from today back then we were buying mostly bank owned properties and that's before

the banks became investors right now you see bank owned properties that are being fixed up and rent you know back then

they just had to get them off their books yeah right and we bought a house for six thousand dollars that had more

than the six thousand dollar water bill at the closing I was like so the bank lost money but they got them off their

books because after the the banks in in their mortgage department they have too

many non-producing assets they there that department can be you know they do their audits and

stuff they can suppress their their lending ability yes in their mortgage department and

because they have too many non-producing assets so they needed to get them off the book so they could keep lending they

didn't care if they took a loss right they could keep lending now you know the

the Real Estate Investors and everything and and so it makes a little bit harder to make a profit off of bank owned

properties reos right but that's what we are buying almost exclusively or buying

other rentals from other investors so using the hard money

lender even though that those were the the terms we were still making it work

because we had a crew we got them in there they were not major rehabs right

quick flips and so we were getting them fixed up and we were we would

you know in the neighborhood uh now most of our properties were Inkster Westland

Romulus right Taylor and but in that area and so you know

neighborhoods while you're working on them it attracts a lot of attention and

so a lot of would-be tenants would inquire so we have business cards at the

door you know with our with our contractor we left sign in the yard and everything right so most of the time we had it rented before it was even done

yeah it was before it was even completed and so we were able to refinance the

property without having to wait that six-month seizing period because we were

only refinancing for rate and term which means now the property is worth

I forgot what we were buying them at you know fifty thousand now it's worth a hundred thousand right and so we can

refinance it as long as we're not trying to put any cash in our pocket at the closing that's when you need the

seasoning period even to this day the lenders want you to wait six months or longer sometimes before you put cash in

your pocket so if if we came in with our own cash and we tried doing the Burr method we

would have to wait six months to pull our cash back out by using the hard money lender we were able to use we were

able to move faster so that high interest rate didn't matter that much because we only used it for a few months

guys and it was long term that 18 would have ate Us Alive so yeah from you know 18 to refinance it

down to I don't know whether eight percent or something like that I mean whatever they were at prison it was a

state facility had a good job so the lenders loved them so anyways we were able to refinance I think we were eight

percent so now we're cash flowing right not as much as we would at you know three or four percent but we were still

making it work so we were doing that all day long and just in and out in and out of this hard money loan

and then our hard money lender would believe it or not would even roll in those 10 points as long as it fit within

that 65 percent which we always made sure it did yeah but which wasn't smart

now we're paying 18 on 10 points yeah right but because we knew it was a very

short term and they weren't large loans they might have been 50 or 70 000 right so that's why we were able to move able

to move so quickly and we were able to get so many properties and that's the difference between back in the 90s

versus now is the price points were not what they are now you know doing that

now at that interest rate yeah would bankrupt somebody you know

but back then keep in mind rents were lower too so you know you got the give

and take as well but so on average how what kind of

rehab did you guys do was it a medium-sized Rehab on most properties was it was it a full gut no no we never

got into anything major because we knew when when you've got a hard money loan at that at 18 interest yeah

you got to move fast yeah right so we were mostly paint carpet kitchen

bathroom got it nothing nothing structural

no roofs no you know so we made sure we were in and out quick

awesome so so with that being said there's a you know obviously following

that exactly is a little bit different nowadays than it was then but the same

type of procedure still works yeah you getting a hard money loan if you don't

want to wait that seasoning period which now on I think it's Fanny

Fannie or Freddy if you're going conventional I now they changed it from

six months to to a year for the seasoning period for cash out yes out see that's what I'm

saying so we can use our own cash or do we use a hard money lender and the difference is yeah

we're going to save money and points and payments and stuff but waiting that six months and tying our money up we

wouldn't be able to move as fast so that's why we went over the hard money lender so and this is where I I want to

let people know that if you're doing this you know if you pull out the money for

just the terms and to pay off the loan most banks don't care about the

seasoning period and that's that's where you're getting and that's how you were able to move so fast we just wanted to

go from 18 to 8 or whatever it was and start cash flowing because it was rented

at that point because it has to be rented and then we need to show your income you have

to show the income for that property right yeah right now things are different now because

now they want to see income on that property for a year or you have to

qualify with your income to qualify for the the payment right so it's a little

bit different but I mean if you you know if your income's there like from other properties or whatever and you can show

it then yeah that's not an obstacle that's awesome so so you got into

you got into working you know with your husband to get these rental

properties and your goal was 10 within the first year and you end up doing nine

okay now obviously because you came up short for one property did he still end

up quitting his job yeah what once the net income

accumulated from Oliver rentals matched his salary that's when he quit that's

awesome and that was in 2000 that was in 2000 okay so that is crazy because going

from there going doing that in a year that is a huge test I still work my day

job but I also like my day job too so that's a huge difference that's a big

difference so my husband said he literally felt like he went to prison every day the difference is he got to come home at

night exactly it was it was stressful yeah so I had the same rule but mine is

I have to match 125 of my income yeah

and the reason why I say 125 is because you got 401K you're putting into you got

your benefits and you got all this other stuff that you're putting into that

makes a W-2 worth it yeah in my opinion that's about 25 give

or take you know so so I that's kind of where  I put that plus you got a figure too

you know what if a tenant or two doesn't pay exactly

right you never want to be at the the mercy of rent collection to pay your

mortgage exactly so yeah you want to have a little bit of a question so

with that being said how so where are you at right now with your rentals

so your first year you got nine we had fast forward to 2003

we had I was thinking about this earlier and I was trying to remember the exact number

I think it was 37. we had a five unit building and a five unit commercial

building in Romulus and the rest were single family homes okay and in 2003

we decided to get the heck out of Michigan and move to a warmer climate we moved to I mean

how much warmer can you get than Arizona and so this this is another thing that 

we experienced you know this is a lease option story

I had never been to Arizona but we just know we we knew we wanted to get to a warmer climate and since my husband

basically flew to work we could live anywhere as long as it was

near an airport and so one of the other mentors that worked for the company moved from Ohio to

Arizona and so you're going to love it here and everything so we said hey find us a lease option I've never been there

but I want to kick the tires so you you know the benefits of selling on lease

option right there's there's a lot of benefits there's also benefits on buying

our research so in our situation I had never been to Arizona and but we did a two-year lease

option so this way if I hated it we there was no obligation to buy we could

just up and leave we didn't anything else so it was it was

a good option for us so that's what we did and you know I loved Arizona so we ended

up staying eight and a half years we were in a million and a half dollar property on an acre with a

eight-car garage and a pool The Grotto and I I really thought that

we were going to stay there like forever real estate market was nothing like it is here

we didn't do it a lot in real estate didn't hold any rentals because then nothing cash flowed

and this area that we were in was fastest growing city neck and neck with

Cape Coral at the at the time and Cape Coral Florida so anyways 

everything was new everything was built up in new new freeways were going in so there wasn't a lot of rehab

opportunities like there is you know in Detroit or

you know it's older how the you know 20s 30s 40s that that we can rehab and

increase the value there wasn't a lot of that there and people were depending on their

you know appreciation and depreciation where you know I'm from Metro Detroit I

I need to get paid every month or else I'm not getting into it right yeah so didn't hold a lot of rentals or anything

we did mostly business financing corporate structuring and stuff like that but okay

as well as the the mentorship but anyways so the lease option worked for us so

we refinanced and everything and then  fast forward to 2011 we decided to come back to Michigan

because family is more important than Paradise

so but you know I'm glad to be back because this is home this is where I'm

from I grew up in Belleville and this is where our family's at the

real estate Market's better you know Springs spring summer and

fall happy to be here winter I would like to be somewhere else see in Arizona

we didn't get the Four Seasons you know we got rain like four times a year and

you know obviously no snow but it was either winter like like in the middle of the winter Christmas season it was like

65 degrees which is beautiful yep but it's like it's only hot or hotter

we're out here I love the fall I love the Four Seasons and stuff so Michigan is home that's good so so with that you

know when you moved out to Arizona do you still had all your rentals here correct no so that's

you know I have some regrets when when we're

we're hitting a touchy subject here so in 2003 when we knew we were we were moving

the property management companies were just I mean the horror stories

about there were really no good property management companies that we knew of right

so we didn't want to worry about that stuff halfway across the country right

and so we sold everything liquidated yeah now this is before the crash yep

okay so the good part about this is that we didn't lose anything during the crash so we didn't get hit like a lot of

people did because we sold a few years you know five years before yeah so you know that that was some

of them we held for less than a year so you know we had that capital gains penalty that we had to answer to and

stuff so you know like I said some regrets and then I'm thinking too like here I am 30 years later they would have

all been paid for you know I've been sitting on them but you know hey I got them once I can get them again yes

fast forwarding the the long-term rentals that I did have in 2017 I changed it to short-term

rentals and got into the Airbnb business been doing that since 2017 I've had

13 of those okay oh yeah kind of I've been super host since the day I

jumped on so this is something I really they really enjoy and be in in the account in in the

hospitality business yeah it's different than being a long-term landlord yeah so

I did an episode with Nick Bastianelli and he is a short-term rental guy but

he's also a real estate agent and he developed a lot of these automation systems to deal to deal

with the short-term rentals where he basically doesn't have anything to do you know but yeah that's where okay

that's where I'm a dinosaur yeah because everything now like I when I do my

mentorships or my coaching it's like one-on-one let's do a zoom call let's give him the phone call or whatever

and and I can teach you strategies I can teach you you know contracts and everything else but

you know I'm I'm keep in mind when I started there was no internet so we we you know I'm pen and

paper and I can appreciate when I do business with other veteran investors

that been doing this you know 20 25 30 years because we're all analog

and all this this new technology and and stuff

I don't know about anybody else my air my age but I'm I'm having a hard time keeping up and so like you said

everything's automated and he's got this and this and this I'm you know I don't have a team I work solo

we have a cleaner for my real my my short-term rentals that's that's as far as it gets yeah right and then my my son

and I serve papers together. I'm a process server. I've been doing that since I was 19.

and I I used to serve papers when I was pregnant with him and now 26 years

later he's well I just served somebody at 6 30 tonight wow yeah yeah so

so you know other than that I don't have a team I kind of do everything myself so I've kind of learned how to do

things you know pen and paper yeah it was I taught myself spreadsheets I mean

that's how bad it is right yeah so but I can email I I do okay I do okay

but this this new technology and stuff is

is something that I really lack yes

honestly I think to take your your short-term rentals to the next level

watch that episode if you want to get a hold of them get a hold of them because I think it's really cool because what he

does is he takes for on booking they go into one calendar so

that none of them can be double booked and then not only that but he also has

on that calendar like every time somebody leaves it's automatically I like the it's on a lock box where uh and

then he has backups redundancies stuff like that but at least with the electronic lock

box they are only given that code for and it's only good for that certain amount of time yep yeah no now that you

I'm all that yeah so I was going to do that but I'm there all uh all the time anyways I'm very Hands-On so I'm there

you know before yeah so I just manually check it but yeah I did get there's a

little Wi-Fi adapter you have to buy to do that and change the code uh remotely you can unlock the door and everything

but I'm I'm close to my places so yeah so there was uh yeah

honestly I like I think it would be really good for you to watch or even yeah I will but

because a lot of his short-term rentals are actually on the other side of the state and he's he lives over here

so I make a role to stay within 20 minutes away from my places

I've I've shut down some would-be parties so I like that

so yeah so I think that was the reason why he forced himself to go fully remote

on that because of that he didn't want to be a Hands-On that Hands-On you know

so but anyways we're kind of digressing here so the short-term rentals you're

getting into those okay you're getting into uh I've been doing short-term

rentals since 2017 so 17 yeah yeah so that's awesome and

are you still buying properties at the moment or are you just wholesaling like how did you get into wholesaling so

wholesaling is where I started it's where a lot of people start and but what I like and I and I believe

everyone should learn wholesaling whether you want a wholesale or not is because you know if if you're even on

the MLS and you're looking for something you find something that that might be you know a decent deal there's some

deals on the MLS and you put in three offers and two of

them get accepted for example but you only have the cash to buy one you're gonna cherry pick which one you want to

buy what are you going to do with the other one walk away from it no it's still a decent deal wholesale it lock it

up under contract and assign the contract right you're still going to close on the one you're going to close on but why walk away for money

right that might be five or ten thousand dollars you can make up because you've already negotiated you've analyzed it

you negotiated you got a good deal there but you can't act on it find someone else who can so

even if you're not a wholesaler if you're actively buying you that should always be

something that you should know how to do 100 I agree with you wholesaling in my

opinion and it is for me it's it's a Gateway into real estate and it's a way to see

how it's a way to get into real estate get

into this and see what direction you want to go okay see whether you want to

do buying holes whether you want to do fix and flips whether you want to do lease options sub to whatever or all all

of the above you know so wholesaling and flipping is like working paycheck to

paycheck yes right when you stop hustling the money stops yep right and

it's a hustle it's a hustle the flips are bigger paydays but they're farther in between and then

wholesaling it is what you put into it right I mean I

a lot of new wholesalers don't don't

this doesn't help new wholesalers right but all of my deals

come from referral yep I I don't Market for

to to get my deals I'll Market to sell them to get them but all my deals Come to Me by referral

that's just because hey I've done the bandit signs I've done the direct mailings I've done the door knocking the

driving for dollars and I've never done cold calling okay or by leads I've never

bought leads I never bought leads until I got my life insurance license right I've always

been taught to bring the you know advertise and bring the people to me so the band

designs and then right so I still have my penny buys houses magnetic signs that

we had on our truck back in the 90s I still have them but but anyways the the long-term wealth

or the passive income comes with your rentals you know because once you do the work you accumulate you know your

rentals that then the money comes in every month hopefully you know you know

you shouldn't have to do me maintenance on a house every single month but you know it's it's it's it's a lot easier

than hustling for that next deal repeatedly month after month after month after month but you've got to do what

you got to do to get to that point so if you're wholesaling to flip and then

flipping to hold right using the same money you wholesale enough properties

you can buy a flip right you've got 50 or 60 000 accumulated from your

wholesaling deals you can buy a cheap flip you might turn that into 85 or 90

or 100 000 use that hundred thousand thousand to buy your next Flip or so

forth but you're still wholesaling right now you're able now you've got some cash

so you can cherry pick those wholesale deals what might work for you go seal

the rest but now you'd be like oh that's in my neighborhood that's in my area that's a quick flip that's only a ten or

fifteen thousand dollar you know I can do that quick the rents are good and silver so and then wholesale the rest

right instead of stepping over them right step over a dollar to pick up a

dime but you know at the same time it's good to know

you know have knowledge about all of your possibilities so that you don't have to turn down any opportunities

yeah no I I 100 agree with you on that and I think that

you know getting again getting to know all these different ways to do things different

strategies different strategies like it just makes you a better investor yeah okay so so I'll go to a seller and like

I said I'll analyze the the properties you know analyze four-ways always right

so lowball cash offer right here's here's my number

if you'll entertain a lease option or land contract or a subject to yep right

they can't do a lowball cash offer if they don't have the equity right because the hands are tied they can't do it yeah

right and so it's not always a distressed property sometimes it's a distressed situation yes right they got

into a property they can't afford the payments anymore they they didn't want to go into foreclosure well guess what

I'll come in I'll just take over your payments right I'm you know but now you have to

analyze that because what are your options at that point again there's no equity so you can't flip that property

your only option is to hold that as a rental can you do that is there structural damage is there you know

fifty thousand dollars worth of deferred maintenance that you know or work that has to be done there's a roof caving in

that's not something just because the opportunity of subject to deal is there that you you have to jump on it you

still have to analyze it and know what you're doing right but all those you

know almost every contract is assignable so whether you got a subject to or a lease option or in contract you can

assign those to another buyer for a fee if you don't want to stay in the deal but you have to analyze that deal as if

you are yes because other investors are not suckers right they're going to analyze it so you have to present a good

deal to them if you're if you plan on you know being a wholesaler that's worth

of them right you got to know what you're doing I've even partnered with my

sellers right so if if the sellers see for example they want a hundred thousand

dollars for the property and it needs fifty thousand dollars in work say the arvs 200 000. so I'm not including soft

costs or commissions or anything like that so say for example I you know I

only have 50 000 in cash I don't have a hundred and fifty thousand to pay them a hundred and then put 50 into it so Mr

and Mrs seller let's partner add me to the deal to create an LLC

whatever needs to be done right and I'm not going to pay you for the property right now but I'm gonna pay the fifty

thousand dollars in re in the repairs now we own a property that's worth two

hundred thousand okay now we sell it for two hundred

you get your 100 I get my 50 we split what's what's different what's

left right now the seller made a hundred and twenty five thousand yep instead of a hundred I made 50 on my

money but I didn't have to buy the house I all I had to do was put fifty thousand into

it I made I made a 50 foot on a property so if

it's a win-win situation and you can work it out sometimes partnering with the seller is

the best option yeah you never want someone to walk away from a deal feeling like they get cheated

right they won't do business with you again if you do good business you'll do

more business they'll refer you to their friends and their family and say hey you're in a tough situation that I was

in a tough situation here's who I went to she'll help you out and I totally agree with that you gotta do business

ethically no matter what uh well I have ethics training with my real estate license my insurance

insurance license I trust me I know and and then I see the mistakes that people

make yeah I see property managers out there that are not licensed they have the proper licensing so that that's

that's another reason why you know again on Tuesday I passed my broker's exam because it was important that

everything's in compliance before I open shop yep no I 100 agree

with you on that and first off congratulations on your broker's license 30 years in the making

never thought I'd needed it let's go now because like I said I

exactly right but you know what you could have team members you could have whatever you know or anything like that

or not to start delegating yeah and you know obviously I and that

actually brings me to uh a quick you know we we can continue the discussion offline that's no problem but

I definitely think that you know there might be some areas where you can

do some automatization or I can even help you on some of that in either your wholesaling or some of

your other businesses just because I've been doing this with the newer and doing it mainly from

home as much as possible so so we definitely can get together and work out something like that no problem

I'm always here to help anybody you know so yeah I need I need help the

younger generation technology yeah so with that

you know what is it you're doing right now though so you're doing you you

mentioned you're doing the wholesale and you're you mentioned you're doing the the short-term rentals

what else are you are you getting in to fix some flips are you getting into yeah buying more buy and holds yeah

yeah for sure so like I said I I don't have any long-term rentals right now I changed

them all to short-term rentals and then I downsized from that after my my husband passed away about two and a half years ago so I had to regroup and and

downsize thank you but right now what I do is

real estate's always been my bread and butter right but it's not what I've done

longest but about four years before I got into real estate I started a legal service and I've

worked for over 200 attorneys in the Metro Detroit area Okay I was doing I

had eight employees I was 19 years old I had eight employees and but I was doing a lot of court

filings and getting annoyed by judges and things that's changed because a lot of done electronically now but I still serve

papers I'm a process server and it's gonna tell you tons of stories about that but

anyway so I do that with my son now and yeah so I'm uh yeah I'm a real estate

investor I do a lot of wholesaling like for example anything in Detroit that comes my way I'll wholesale that

I'm not gonna I'll hold anything but out here you know I'm in the Ann Arbor area so out this way I'll look into you know

holding flipping definitely always an option

right now you know the price is fluctuating I I do have my contractor that I I know and trust so that's an

obstacle for a lot of people contractors the biggest obstacle when it comes to flipping

but I have my life insurance broker's license

I'm a life insurance broker I've been doing that for a couple years actually got my license after my my husband

passed away so but I am side note I'm looking into

the infinite banking concept which actually is a very nice marriage between

my real estate license and my life insurance license yes because and it's it's fabulous but I never

teach anything that I don't know or I've actually done so I'm learning about this

because I want to have that most accurate information and be able to to do it properly but that is very very

intriguing to me especially For Real Estate Investors be your own bank right be your own

Banker there's a book that I'm actually reading right now but I do one-on-one mentorships coaching

I can do a group setting I've got an Airbnb class coming up later this month

with a with a broker in Wyandotte I've got some eBooks and things like

that you know just trying to help people but I do a lot of wholesaling I mean as

far as what I've done and what I teach lease options land contracts subject

to obviously short-term rentals I actually love being a host uh it is

different but I spoil my guests uh like crazy and I I don't get anything less

than five star reviews but and like I said I'll partner with uh

people I do have a lot of people that say you know I've I've got the funds I've

got the means I just don't have the knowledge or the experience I don't want to make the mistakes yeah we can partner

together and you know split the proceeds or whatever I'm open to that I've always been open to that

but my suggestion to people especially if they're getting started is

to learn everything that you can learn you don't want to come into this business ignorant or not knowing

you know as well as I know you've seen it can be vicious

they can be vicious when it's like there's some sharks out there that if

they're gonna sense don't know what you're doing when you're out there pretending like you do they'll Eat You

Alive I mean I see it and it's a very male dominant industry I'm speaking I'm a female at this point very male

dominant industry and I have no problem giving it a pissing contest

chances are I've been doing it longer than them and I know more but I'm always good up for a good

challenge but another thing too that people have to understand is

when you're putting in offers and you're negotiating with someone always ask ask ask every the answer to every

question that you don't ask is always no yes and a good example of that is is back in

uh back back in the day when we were buying up I mean we were we were buying four or five I mean getting accepted

offers four or five properties a month okay we were wholesaling and we were cherry picking the ones that we wanted

to keep as rentals and so forth but there was one property that that we were

negotiating on and there was it was it was a nice brick ranch it was an Inkster and

it was a beautiful octagon picnic table in the backyard I went oh we like

the we like the picture so we were we actually put in the offer that they they

left the picnic table as part of the sale right and they were oh man we can't we can't leave the picnic table you know

that was a wedding gift from you know so and so but we can let you keep the

dog no if you don't want the dog we don't

have any use for this dog you know so but the answer was no but what I'm saying is that you never know we've

we've put offers on car with on houses that had cars in the garage you know

down Mercedes we want that Mercedes and and included in a sale but you never

know what you're gonna get unless you ask so always ask and and

I had heard uh there's a saying that said if you're if you're if

you're not embarrassed by your offer it wasn't low enough you know what I've heard that so many

times it is it is but it's true yeah because if they if they immediately immediately

say yes you you're like okay there's some there's some motivation there there's either

motivation or no basically you're not doing your numbers right but when we were buying

with a hard money lender when I was dealing with the sellers I would basically tell them look based on the

financing that we can get because we can't get traditional financing because of the condition okay we both know this

place is a dump right there's no denying that yep right so so based on the

financing that we're able to get for this place we have to be below this

number I'm not trying to lowball you I'm not trying to play games this is the

numbers this is what we're dealing with so we can't come higher you know our hands are tied we can't and so when we

would explain that to the seller they would understand and not make it look like we're just trying to take advantage of them we explained that this is our

financing options right so no 100 agree with you on that

and I really think that that is super super helpful tips because the

thing is is that we don't want we're not going after these perfect houses that

are brand new or brand new builds or or just five years old and they don't need

a ton of work we're going after these dumps that need a ton of work right you know well that's the motivation to get a

discount if you don't have that motivation then what's the point right you're not going to get a house that

needs no work in perfect condition unless the seller is in a bad situation you know themselves

I always love it when I get talk to new buyers and I'm like okay well what is it

you want all we only want to do with the suburbs you know Oakland County

if it's Macomb then more North you know like everybody else and oh by the

way we only want carpet paint remodels that's it and like you and everybody else buddy

yeah to get in line I'm like doing everybody else looking for you're gonna have to change

some of that criteria real quick especially if you say you want it at a 70 discount yeah so either you're gonna

pay more for it or you're going to be waiting a pretty long time so to do a little bit bigger of a

rehab so now with that going you know you said

you do mentorships you do you have courses things like that how did you get into doing all that

well when we when we went from students to trainers yeah with Russ the Russ with

me back in the you know late 90s that's right yeah yeah so we started mentoring

and and stuff there and it was all you know I mean it was all great information and the students were very very

successful yeah so that's it's just basically I mean

so you just continued that on your own versus with that organization yeah

because just in conversation with people or things like this that say you know so

I don't really I don't have like a big you know again the technology

deficiency here but you know I so I don't I don't even think I want to get

it to that point because that's a lot of responsibility of delivering that but you know privately one-on-one or if

you know somebody says oh I got 10 people you know you want to do it you want a class you want to do a class to

teach my realtors how to be more investor friendly or something like that

or you know get a group of 10 people to teach a bus subject to I'd do you know more smaller settings yeah like that

that I'm more comfortable with but I can definitely you know for my knowledge and experience and again I

stay up on on top of the laws you know when the Dodd-Frank Act came into into place and things like that uh you know

the the subject to some laws have changed with that as well

landlord tenant laws are always changing so you know you got to stay up

on if you're in this business you gotta you know the laws and things are always changing but the concepts kind of stay

the same the theories of of you know how subject to and how lease options and land contracts work

yeah so that that's really good to know really good to hear as well and

so with that anybody who has any interest and stuff like that you know

stay to the end well you know you'll be able to get our contact info also it is

in the description below uh where I put all her contact information and any any

of the links that she wanted me to put in there I put them in the description below so check that out as well so I've

got some eBooks on my website one thing to that I mentioned is they're they're they're not extremely

long because I and this probably works against me but I don't like when I get

an ebook or a book that I get or the first three chapters is you know telling me about their feelings and how they

grew up and what went into real estate and you know I you know I don't mean

to be insensitive but I don't I don't really give a I want to know you know give me the meat and potatoes and

so that's that's my my stuff it just kind of gets right into the just a just a quick intro about how

you did you're successful blah blah blah okay this is how I did it you know so not even the intro I don't know okay

I've been doing this for this as long and you know here you go but I mean so

it's kind of like like I said it probably works against me because that's you know three chapters of fluff but is

it that's not in there it just gets down to it and I always tell everybody that you know

if there's anything that doesn't make sense or there's follow-up questions or anything I'm I'm available I'm

accessible if you have questions I'm always happy to answer them so I'll help anybody as as much as I can so

those are there I've got like four or five eBooks on my website

the one-on-one even if it's just like if you just want to learn about subject two or just learn about lease options or

sandwich lease options or short-term rentals Airbnb or anything like that

if I haven't done it I'm not going to teach it got it that that's a pet peeve of mine so Larry Shepard from

Facebook I actually asked uh can you share more about your mentorship program as far as cost and for one-on-ones so

that's another thing too is I I another pet peeve I have is people just really gouging their prices like so I'm if you

want to just do like a general session for like an hour it's like 99 bucks if

you want to learn specifically about a uh you know lease options seeing which lease options

or subject to or land contracts or just a specific yeah or wholesaling or

something like that just a specific strategy we can I can do a zoom session we can

usually you know split it up but it takes you know a couple few hours I cannot cover everything and give you my

contracts and and everything that's usually at like 249 dollars so I try to

keep my stuff you know real affordable that's very affordable honestly yeah so

yeah most definitely and by the way anybody who is asking uh as far as one-on-ones I do one-on-ones for new

beginners for anybody just for for advice things like that I I'm not even charging at the moment

the reason I'm not charging you is because I want to be able to record it and use it for content on our channel so

that's the trade-off I'll do a one-on-one with you you give me they use that as content you know so next year

I plan on I'll plan on possibly charging for it but come to that bridge when it comes to it so I want to help out as

many people as possible that's my goal so at least put that out there but uh with that being said you know

so what is it that people from here can help you with going in the future

and how can we help you the group as well as what is it what is

the future hold for Terry penny well now that I have my broker's license

I you know I can use that for a few different things I can open up my own brokerage with agents under me but

that's not the direction I'm going in because I'm not really in like again off Market as my comfort zone but I am going

to use my broker's license to start a Manage Property Management Company so I'm in Washington

County we want to be centrally located around Belleville maybe which so that

helps us with Washington County Western Wayne County Monroe County you know going north going south going east

probably no farther than Redford so we won't be managing Detroit okay

I've been there done that you know managed 150 houses the the rehabbing

rental and and and so I we're just too far away right

but you know we'll probably go as far west as Jackson because we already have properties

out in Jackson right now so might as well stay out there that going

so I'm going to be working on ramping that up so I'll be open to managing some properties I've been managing on my own

properties for over 30 years my contractor has been in construction for over 30 years I don't know why we didn't do this sooner

yeah but anyways we've got that coming up and I

know people are are good honest and ethical property manager that's that's

you know got everything uh in compliance and so I'm looking forward to Growing

that other than that I'm you know again I've I've got a lot of things going on

I got a lot of them tied together with real estate my short-term

rentals my insurance rate my broker's license at all ties together so got it

the only thing that doesn't tie with real estate is my process serving but

I enjoy working with attorneys it's just mindset

yeah so actually a side note I well I would I should say had my insurance

license from a long time ago my life insurance license yeah  I did that for a while

and I it was uh it was crazy because

uh sorry I so I had that for a while and

uh and it's crazy because uh

I went on I did one appointment I I did all the cold calling did all that and just realized it wasn't for me so

was that before covert yes yeah so now not too many appointments in person

the commissions are crazy but it is a hard sell yep so I'm not you know I'm

not one to do cold calling or buy leads and you know that that's just not me I'm not on

the phone eight hours a day and saying hey you need life insurance that's just not how I'm cut some people

make a killing doing it I mean I'm seeing some killing in 20 30 grand a month but

what I am trying to entwine the life insurance with is again the infinite

banking concept where you can get a life insurance policy and then you can pay into it I'm just gonna give you a recap

again I'm learning more about it but you can pay into it and

say you make a profit off of one property as a from the angle from a real

estate investor right of being your own bank if you make a profit off of a flip right but obviously in this market

especially you're not going to find your your next flip right away so you you deposit that in there and you keep feeding that into that you can into a

life insurance policy now you can withdrawal most of that 90 78 this is again I got

to get the details yeah and and so what's happening is with the insurance

the insurance carrier the there's a compound like a compound interest yeah

right so you're you're getting paid dividends based on how much is in there now you would do a withdrawal from that

and you say you pull fifty thousand dollars from it to buy a property or

whatever you're going to fix it up it doesn't interrupt that building process what happens is you're pulling from the

benefits so if you die the next day say you got a two hundred thousand dollar policy and

you pull out 50 you die the next day your family is just going to get fifty thousand dollars less yeah you've

already pulled that out but you can pull that out and your compounding yeah Dividends are still

going to accumulate as if it's you know the 50 000 is still in there yeah so this is what I'm learning more about

because you can tap into that for real estate for a car loan or whatever and

instead of paying that bank six or eight or ten percent interest you pay it to

yourself and there's no one breathing down your neck to say oh if you miss a payment we're going to foreclose on you

because it's your account it's your money and there's no application process there's no appraisal there's no one

saying no you can't so it's it's powerful and if and once I learn how to

entwine those together with that and the real estate and with me having my life insurance license I can set them up with

that with a plan and and that's a big thing too is having a plan going back to

why we got into getting rentals back in the 90s is the plan was for my husband

to quit his job so if you're just into this just oh I just need to make money

no you need to have a plan what is your goal yeah right where are you now your goals are going to change right your

timeline might change but you gotta have something that you're working towards or else you're just hustling

right you gotta know what you're hustling for yeah so also you know that it's really

cool you know but I'm I want to learn more about that the

infinite baking especially because I have a background because I did that

life insurance stuff so I know about it and yeah I'll let you know once I get

there again that's something I'm studying now but it's intriguing to me I I like it

yeah so with that how can people get a hold of you to talk about all this and

I know we usually go for about an hour and a half I'm gonna have to cut this a little short

you'll run about an hour and 12 minutes right now but how can people get a hold of you to talk about anything any of this stuff

that you brought up or anything like that so I've got

my my I've got a couple different websites my main one is terrypenny.com t-e-r-r-y p e n n y.com

yeah My email is moneypenny2k

at gmail.com because I'm Mrs Moneypenny yeah and that's why I go on that's my

short-term rentals my profile says Mrs Moneypenny yeah and uh and Mrs

Moneypenny likes to spoil her guests with wine and chocolates and all kinds of snacks so anyways

my number is 734-392 -4880 awesome one more time for people

who are a little bit slower like me for 3

4 8 -0 moneypenny2k@gmail.com yeah so that

that's really cool and we can anybody who has any questions by all means reach out to or

talk with her if you want to do the entrepreneurship uh or sorry if you

wanna if you want to do the mentorship with her please reach out I think you know grabbing from her experience is 100

that's why you do a mentorship so if you're just starting out and

looking to do a couple just one-on-ones reach out to her as well you can also reach out to me as well

my number is right here at the bottom right there and kind of go from there all right and then I I do have I have

a lot of wholesale deals I think I just added what 30 years oh my God I saw that yeah yeah so that's crazy they might be

priced a little high I get that okay yeah I'm getting comments thank you for your comments

are accepted right I know but you know you can only do so much with the seller

right I mean I try to maneuver as much as I can but my my website for my real

estate investing if you guys want to take a look at any deals I have I've got some commercial properties from

Residential Properties rentals vacant lot so forth It's corleyonrealestate.com deal so it's

c-o-r-l-e-o-n-realestate.com deals if you do slash deals that'll get you right into the page where the deals

got it and Corleone let me just explain that so there's no e at the end so it's Corleone so is a combination I

have four boys Christian Jordan Jalen Zion so the Corleone is a combination of

their names so that's why there's no e at the end I am half I'm half Sicilian

so it just kind of flowed I had to I had to run with it and then my

I used to help run the Ann Arbor Real Estate Investors Club Brian bunningson has it but he actually came

up with my tagline I will make you an offer you can't refuse so I had to run

with that so anyways why not right look at my site and take a look at my deals that I

have and let me know if there's anything that catches your eye all right that's awesome also I know you post them on the

in the groups as well and go from there but by all means

reach out to her she's a great person I see her at the meetups all the time and love I always usually pick her brain

about something so my face group is on my face my Facebook group is

 uh money pennies real estate playground yeah so if you guys want to join that 

I try to get in some content and some just do some fun stuff not always deals but I like the tiny houses concept

so I post things like that or you know just some fun stuff about real estate

so I know I have a whole lot of memory I don't have as many members as you but uh that's okay though you're

working on it so I put a lot of work into the Facebook group I know you do yeah so we just hit

almost 3 600 members right now wow so congratulations everybody who's watching

on there so thank you and you know  I really do

you know this sorry I was wasn't look at the comments but there was a question

of how we get a hold of the wholesale deals which we just explained yeah so

going there and then you know said Thank uh really enjoy the content and

you know thank you guys so really appreciate that I don't know who I usually have it up over here but I was

answering a text message so but I you know I'm happy to have you on anybody

else who wants to learn more get a hold of her she's great person great

personality very ethical yeah I always answer my phone so don't be afraid to call me that's

awesome I really do appreciate it all right Terry if I'm gonna just bring you down to the side and then uh uh you know

just hold on once we once once we stop real quick alright okay alright thank you Terry I appreciate it have a

good day thank you all right thank you everyone that is it for today please join us in

two weeks from this past Monday we're one week so two weeks from this past money every

other week we're going to have another another person on here don't know you who yet I have a few ideas and we're I will

keep keep a lookout for the advertisements all right thank you have a good day and let's all do deals

together.

Real Estate Talk w/ Randy Stedwell Episode #8 | Malcolm Turner Founder of Castle Commercial Capital →

On Episode 8 we will be talk with Malcolm Turner Who is Founder of Castle Commercial Capital LLC, a National Commercial Mortgage Banker and Brokerage. We will be talking about his 25 years experience in the financial Industry and how it relates to the real estate world.

Malcolm Turner is a highly respected and accomplished business executive. In 2007, he founded Castle Commercial Capital LLC, a national commercial mortgage banker and brokerage, specializing exclusively in commercial lending. With over 25 years of experience in the financial industry, Malcolm has developed a deep understanding of commercial lending, capital markets, and investment strategies. Throughout his career, Malcolm has worked with clients across a wide range of industries, including real estate, healthcare, manufacturing, and hospitality, among others. Malcolm is known for his strategic thinking, innovative approach to problem-solving, and exceptional communication skills. He is a results-driven leader who is committed to helping his clients achieve their financial goals. His ability to develop and execute innovative investment

strategies has earned him a reputation as a trusted advisor and thought leader in the commercial investor community.

In addition to his professional achievements, Malcolm is also actively involved in various philanthropic activities. He is a strong believer in giving back to the community and has volunteered his time and resources to support several charitable organizations over the years. He has served as a deacon for 15+ years at Greater Emmanuel Church in Detroit, Michigan.

Malcolm is a sought-after speaker and has delivered talks on commercial lending at numerous industry events. In his current role as CEO & President of Castle Commercial Capital, Malcolm is responsible for overseeing the company's operations, developing and executing its growth strategy, and ensuring the delivery of exceptional service to its clients. Under his leadership, Castle Commercial Capital has achieved significant growth and expanded its reach to serve clients across the United States.

Web: www.castlecommercialcapital.com

Social Media: http://www.facebook.com/castlecommerc...

http://www.linkedin.com/in/malcolmturner

http://www.youtube.com/c/CastleCommer...

https://twitter.com/CastleLoans

Get PreQualified: http://castlecommercialcapital.com/fo...

Website Video: https://www.castlecommercialcapital.c...

Google Play App: https://play.google.com/store/apps/de...

App Store: https://apps.apple.com/us/app/castle-...

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

Hi everyone how's it going I got a new mic this time I wanted to

say welcome to episode eight of real estate talk with Randy Stedwell at that

logo is not very good with Randy Stedwell there you go uh anyways

with that being said we have our guest of honor which is Malcolm Turner

Malcolm Turner is a commercial real estate commercial

commercial lender and so for all of you guys out there

doing multi-family you want to use him uh not only for the lending portion but

also to help underwrite a deal in my opinion so I think he can help you

tremendously in this uh so with that being said let's welcome Malcolm Turner

Malcolm how you doing I'm great how are you oh I'm doing awesome so got the new

mic you got the first episode with the new mic here so you know before it was just my airpods

so but I wanted to uh so you're a

commercial lender is that correct that's correct so with that

how can real estate professionals use you as far as uh being a being a

broker and things like that uh in the context of a real estate agent

or a broker they can call me if they have a deal that they want to pre-qualify for

financing you know in the introduction you mentioned multi-family yes and when you're doing

commercial the focus shifts from the person to the property okay so

eighty percent of the underwriting is on the property yeah and about 20 is

on the person okay so I'm looking at

like example I was talking with an investor this morning about their multi-family deal and I was

saying hey guys I need the leases because I don't care about your W-2s

because you're not making the payment I need the leases on this property so that I can see what kind of income is coming

in when the leases expire uh are they month to month you know that kind of

thing you know so yeah because the property becomes preeminent when you're

dealing with uh commercial whether it be retail office warehouse you know it's

it's the same same bucket okay that's awesome so you know I I just kind of

jumped right into that but I you know so the good thing is

is I I kind of wanted to let people know out there that you're the person to go to for any

multi-family or commercial loan lending also any commercial buildings I

highly recommend go through you as well if you don't know what you're doing if

you don't know what you're talking about if you're another wholesaler that has a deal under contract and you need a

second pair of eyes to underwrite it by all means this is the guy to talk to

because he will tell you whether there's a deal there to be had or not or if you

need us in order for the deal to be had you need a strong buyer for them to be able to lend okay

things like things of that nature now let's kind of get back to back on

track here so how did you get started in in the financial industry and how did

that lead you to real estate well

 I was doing residential well you say real estate

you have to go way back I got my real estate license

when I was uh 20 21. okay something like that you know working for Real Estate

one which is actually how I met my wife because I worked out of the real estate one office in Lathrop Village and she

worked out the real estate office in Detroit one office in Detroit and just you know give you a little comparison

this is a 19 80 8 89 something somewhere around in there

okay and interest rates for a 30-year fixed

rate mortgage was 9.75 percent or 30-year fixed and we're complaining

about six or seven percent losing their mind right six seven oh my God 8

. hey oh it's like come on man you know now here's here's the irony back then

when I when I met my wife they had a big company meeting where they brought all the respective Branch offices together

one big uh whole meeting at a hotel in Southfield because real estate won that

year for the first time in their history crossed one billion dollars in sales

and they were the biggest in the state I don't know what the numbers are now but they were like yeah we're killing it

next year's gonna be even better and this isn't a 9.75 interest rate environment we were selling real estate

like crazy and so someone asked me the other day you know as an investor Malcolm you know you're looking at rates

and things like that and where things are going and you know when is the best time to buy when you find a deal

yes because if I'm a if I'm an investor I'm an investor it's what I am right I

invest in real estate so should I buy this multi-family this is 2023

would have been better for me to have bought it 10 years ago 20 years ago 30 years ago

you know yes there's been some ups and downs obviously you know in the market on a month to month quarter to quarter

year to year basis but if you got it 10 years ago you're probably pretty good

right now yep you know now if you bought it two months ago that might be a different story right so you're a long-term investor you

buy for the long term you know when should you buy when you can get a good deal you know or when the deal even

makes sense because sometimes you can't always kill it on every deal

that is true that is true yeah sometimes you got to go for not every deal is

going to be a smoking deal you know that's right that's right and I'll show

you a little bit how I work I had a guy call me this was uh Friday

uh no no no no this was I forgot this Friday well this was the Friday

before last and he was calling me from Washington uh DC area okay you know

it was a referral one of his buddies who also invest in Detroit from the DC area and he's trying

to buy this property this property was in Pennsylvania it was actually he's in

DC but it was in York Pennsylvania right and the listing price was 4.99

I forget how many it was a small I want to say maybe 10 12 units it was a small multi-family

okay so he said yeah me and my realtor we went ahead and offered 425

and so you know I was hoping I could catch you this morning but I couldn't wait so we're putting an offer in at 4

25 and I'm like okay so what's the number so we went over the noi right and

I said okay the cap rate that they're selling this property at is

it was like 8.63 percent okay okay but I asked him did you double check the

numbers and he's like what do you mean I said well you know in the offering memorandum they said here's our expenses right

here's our income and then here's our net down here but did you actually do your own math well you just assumed that

total was right because a lot of times it's not and he's like no I didn't so he did the math and it was 10 grand off

right okay right so okay well you know 10 grand is 10 grand you know so we did

the math based on that Capital it's like okay well that should drop the price down to 3.99 then we found another uh error

in the operating agreement where they didn't account for vacancy loss which should be five percent yep right and

there was a there was one other thing which I can't remember and Property Management

no I wasn't Property Management that was actually in there but anyway it dropped

the noi further you know I want to say like 34

000 31 000 somewhere in there and so I said now based on their cap rate that

they initially was offering this property at you should be offering 352.

yeah he's like holy crap you know the other night as I talked to

just wanted me to throw in an application and I'm like you can throw in an application if you want to

you know at 4 25 I mean you did but I don't see how the values there and you

know just as from an investor perspective I mean it's your you know it's your decision but let's even look kind of cash flow

so I was going strictly from a sales approach yeah right so when I said okay

based on a 30-year amortization because you can get a fully amortized 30-year

loan on a multi-family yeah right so I just did a uh uh I calculated the The

Debt Service on that and was like oh man it's big you're barely making like 700

bucks a month because he had all that other stuff yeah so it's

like 700 bucks a month at 352. why buy a 10 unit then right so

I said now is this property under Market relative to rents yeah and he was like

oh yeah absolutely and it had a it had a first uh the first floor of the

building was retail so I had three units of commercial okay right one of them was at market rate the

other two was substantially under okay right so he's like well once I get those

up to full Market you know that would be like half my

cash flow all by itself yeah which is actually not that uncommon when you have

what we call mixed use yep right and so I said okay what about the uh

residential units he's like oh yeah they're under a market too now based on Market rates he gets that rent up okay

now the value is at 4.99. [Music]

but you're not gonna pay a premium for what what's going on now

exactly now you after you do all the work now you're paying the price of after you do all the work and as some of

your your viewers may know a lot of sellers will say well when you get done

yeah rehabbing this place or changing the rent roll over yeah or you know

raising the rents oh yeah it'll be worth this it'll be worth two million dollars yep yeah but I'm not paying you too many

dollars now exactly it's not that you know that's my Equity yep right if it's

so wonderful you do all that stuff you put all that money in time and work

effort in and then you get it to 2 million you know because the the question that I would think as an

investor I would think well if it's all of that why didn't you just do it if it

was so easy exactly right oh you didn't want to do it okay well if you didn't do

it that means I've got to so therefore I deserve to get paid yeah right but the thing just didn't

cash flow anything above that 352 number and

whether it's worth buying or not gets to after I get it cash flowing after I turn

over that rent roll is the opportunity for growth the answer was yes yeah okay so as a lender I have to underwrite it

as it is [Music] I can't underwrite it for f499 no you

know it is this property by the way was 100 full okay so this was not a property that was beat

up torn up yeah you know it wasn't that kind of situation well it probably was just with tenants in it so

you know old old tenants right right but

physically the property was in good shape you know it didn't need it according to him it didn't have a lot of

deferred maintenance at all that he could see right so but that's where we

sort of did a deep dive and then he's like well man my realtor is going to be upset

right and and I just sort of said to him well let me ask you a question

I was like okay you're looking at 399 now we're looking at excuse me 4.99 now

we're down to 352. you know as a lender is it better for me at 4.99

or 352. he's like well I would think it'd be 4.99 because the loan amount is bigger I

was like yeah exactly so I just cost myself money I'm a terrible loan officer

right and then we just laughed you know they joked about that right but at the

end of the day me wasting his time taking an application on a bad deal when

I could have sat there and literally in 15 minutes 10 minutes do the math

and say does this make sense yes right versus taking a loan application he

spending the money on due diligence for a deal he shouldn't even be looking at for five seconds yeah and

this is going through two months of you know due diligence yeah and this is where I tell people build your team okay

now it does not mean building your team does not mean go higher 10 people or

anything like that no build connections build connections with your loan officers with Malcolm build connections

with people other wholesalers that are more experienced other investors are more experienced that can help you run

the numbers and help you uh look to see what you're not seeing we all have

blinders because we see a deal we need to open up our eyes and building our

team helps Open Up Our Eyes by hey can you can you run through this can you can

you can you look at this again can you see how you know how we run the numbers are these numbers and am I missing

something you know right things like that right so absolutely it well and

here's the thing I know that there might be some investors I think in well man what I'm offering and how much I'm

making it with my hours that's a that's my business that's true yes however

Underwriters on the lending side we're doing that math

sooner or later in the process we're doing that same math because from

our perspective if it's a bad deal and I say a bad deal

let's say it's barely going to make money our perception is if he's paying us two

grand a month and he's only making 400 bucks a month right at some point resentment is going

to build in because the bank in his mind is making more money than he is as the investor and How

likely is he to default and how like well and maybe not right aholically

default but even even more common than that Randy is How likely is he or she

to put the Deferred maintenance and make the improvements you know what

I'm saying do do the repairs and the capital expenditures that they need to keep the

collateral up yeah you know because I don't want to you know  I never want to take back a property I'm in the paper

game yeah you guys are in the property game right I yeah I do not want property

this is not a loan to own situation hey I want to be in your game I'll tell you

that that's not my thing right yeah so if if

if if if I feel like man this is a bad deal they're gonna sorrow on the deal and then they're not going to do the

maintenance and then the property if we have to take it back it's going to be worth less

yes right well okay so now what do I got to do take this property back and then

hire someone to go in there and Rehab it and do the things that it should have done been done already

you know it's already going to be expensive right you know so we don't want we want to see a healthy Roi

for the investor because we know that deal is going to be viable long term

you know and if it's that if it's not we're going to ask them what's your plan yep

right because man this this looks really thin you know and they're going to say oh I

plan on doing this I want to change this okay great if there is no plan

and it's like man he's his RIS is is barely equal to the

interest rate on the loan yeah we're not gonna so is that is that the reason why

you ask for a scope of work on uh from a contractor when you do like a hard money loan or or

construction loan whether it be commercial or residential it doesn't matter right right well that's that's a

that's a scenario where we're going to say I plan on you know putting in 50 Grand

and this thing is going to go from let's say 500 000 to 650. got it like okay so we're

going to take that scope of work and that rehab budget and we're going to give it to the appraiser and we're going

to say to the appraiser tell us the value as this now tell us

the value after implementing this scope of work got it right and

sometimes the numbers there you know sometimes it's not no I I 100 agree with you on that

the numbers don't lie and that's one thing I learned the the numbers don't lie to what it is

they may try to lie for what the value could be and that's what I notice people

seeing is oh yeah my house is worth arbitrary use

m uh 500 000. okay oh it's worth five hundred thousand that's what Zillow says

but you need 70 grand worth of work in order to make it actually worth five hundred thousand

right right well I'm not gonna put it while you're getting you'll get into a situation where it'll be this is not

typical but it happens yeah well I'll get into a discussion with an investor

where their number's too low yeah right so example I'm working on a

warehouse deal in New York State okay and it's a huge building almost 400

000 square feet okay and they're like they're buying

this building for two million dollars okay and and actually they they bought it for

two million and they're gonna put some you know they need another two and a half to do some

substantial repairs uh to the building okay and then when it's done it's gonna

be worth seven all right so in their from their brain okay so I'm

doing the math and I'm like this doesn't make sense if I take

the if the average square footage uh price per square foot in Rochester New

York is for for industrial for industrial for industry seven thousand

and you know like 782 a square foot times 377 000 square feet right

that's a huge freaking number yeah right industrial tenants are triple net

typically okay okay so all you have to cover as a landlord is the outside of

the building right so the lights on the on the exterior of the building make

sure the roof is solid the walls are good and you know maybe security for the whole property right yeah fencing very

little expenses so I'm doing this math and I'm like man this is like a 10 12 million dollar

building depending on what you guys charge that says now let's say we don't do seven dollars what if we did five

before we go back through the math again and I'm like okay I'm at 10. at five

bucks am I missing something and the guy's like they can't they can't be worse so

why is that because my expense is gonna be 500 000. how yeah

help this is a math thing let's go through it here's the taxes taxes are 50

000 a year the you know the you know utilities which are which are light

because yeah tenants are covering the utilities right we go through all the

categories so all these make sense yes that's 233 thousand dollars

yeah 1.5 million in income

so where's the other 200 you know yeah 250 000 bucks right

we'll do what I miss something well no that's right okay well now let's take that net

1.2 divided by yeah right a conservative cap rate right unless you

use 10 that's 12 million dollars

oh that can't be right well and getting to your point Randy the math

yes is the math yes right so I'm I'm so

he was thinking I'm gonna have some of these tenants and I'll be a little loosey-goosey with them

and I'm like no if you actually run this property professionally

you know there's a ton more value here than you think

you know yeah and even we chopped the numbers down to like four bucks a square

foot right which I told them doesn't make sense because you got 28 tenants and

look at your rent roll this 10 is paying you six bucks a square foot this 10 is paying you five bucks a square foot this

10 is paying you seven dollars a square foot why would you charge someone four bucks

right you're already getting that from your existing tenants you know that doesn't make sense right

he's like yeah but that number just can't be and I was like dude you you got a better

deal than you thought but you can't run it like a multi-family

so I got a question did he get it for 2 million

oh yeah oh sure did he sure damn he got it on land contract

okay and I my first reaction and sometimes I'm

I'm way too blunt I was like wow this seller was an idiot right he's like oh the guy's not stupid

the guy's not stupid I'm like oh is he your friend oh sorry I didn't mean that such such a

friend I'm just looking at you know no there was a lot of space that he didn't

lease and the guy basically was trying to be an absentee landlord yeah and half

the tennis were a month I said half 75 percent of the tenants were amount to

month okay right and I I truly believe in my heart or Hearts the seller was not banking all

of that money yep you know what I'm saying because I got the distinct impression that some of these tenants

were paying like directly you know what I mean he's like he's you know and

then the the guy was walking I was I'm talking to said the word for me you know

money laundering like because if there's like you know I'm looking at the leases and if they're

paying this much but he's only showing this much on on his bank statements because the bank

statements did not match the rent roll got it so one of the so one of the two are

wrong and he's like oh no they're paying it and I'm like okay he's just not counting it he's like yeah he's not

yeah so he screwed himself honestly yes he did yeah yes he did and honestly my

client was a little tempted to take some of that same type of you know

Freedom with the numbers that the other guy was taking and I was like you're

gonna screw yourself yeah if you account for everything and you do it the right

way there's going to be five million more in value in this property that you expect that

you will then be able to tap yeah on a tax-free basis when we do the cash out refine later and that right there I'm

going to tell you if people are tempted to do that be like because I don't want the government to get it I don't want the government to touch it or anything

like that the government doesn't touch debt that's right period

so if your plan is to cash out refi do everything the right way account for

everything so that when you can get that cash out refi

that all that money is yours to put into other businesses other Adventures

whatever it may be okay yes absolutely because the government's not going to

touch your debt that's right that's right okay people don't get it

the only people that do get it are the people that have

have listened to read the books of Robert Kiyosaki I'm going to tell you

that right now uh or other people who said that but like people like Dave

Ramsey fans they don't understand that so now you still have to

have debt properly because you will need to make sure that you're cash flowing

okay so uh and let me let me be clear

my firm Castle commercial Capital we set it up 16 years ago okay

February 9th uh 2007.

right right before everything went to hell in a handbasket yeah that's right that's that's the best timing right

there that's timing and I was doing uh you know in 2006 I was doing Residential

Mortgages out of uh Livonia for this this company that was hiring like Waiters

and they like literally would recruit waiters and and Busboys and say hey you want to make 10 grand

next month you know yeah and then like I was like yeah and and you know one of

the the owner of the company would take a couple other guys that used to be bus boys and they're like yeah I was over at you

know Olive Garden and yeah I did a grand last month the guy's like really and then it would just

basically put them in front of a dialer and they would dial people all around the country and say hey I can I can refi

your place and save you 200 a month and folks would go okay and then they

went FedEx on my whole loan packet this was obviously before you had excuse me

electronic signatures and you know all that other stuff and this guy was was doing huge Mortgage

business out of uh out of this shop and but I

would not sell a bad deal you know because once I once I got out of uh real

estate I wanted to financial services financial planning right so I was series seven series 63

that kind of stuff so I came out of the the formal training of you have a fiduciary responsibility to do the right

thing for your client yep right so I did a I had a prison guard

in Detroit that I got I got a mortgage for like 85 000 okay FHA fixed

rate and my manager was like what the hell are you doing Malcolm you could got this guy 300 000 mortgage

you know I'm like yeah but that would have been an option arm which are garbage and this guy's a prison guard on

the fixed income he's not married he's not going to be an entrepreneur he has there's no you know he's not on track

where he's gonna make more money if that mortgage moves he's screwed you know yeah but you could have made

five six grand and you're making like six hundred dollars yeah but aren't we supposed to the right thing for our

client oh oh there you go Bankers don't think

about that stuff again you don't want to make money fine you know and I was

talking with my pastor that Sunday after and he was a real

estate investor he had a bunch of rental houses and I was like why should me

wanting to do the right thing be a Badge Of Dishonor uh-huh you know why you know

I'm I'm obviously I'm putting my pocketbook above uh or the client's interest above my

pocketbook but in the big scheme of things I'll be okay and I can sleep at night and he was like well if you're

gonna do a mortgage company Malcolm how'd you do it and I said well first thing I do I do commercial because commercial is not a

it's not about the kitchen how big the yard is it's about the math yep you know and you know how'd you set

that up well you got to open an office got to get some you know basic you know fax machine some laptops blah blah blah

and I said and then you know you're gonna have to set up some uh alliances and some relationships with some lenders

and you know blah blah blah it's like I just talk type my hand after about 20 minutes like yeah that's about how we do

it it's like okay let's do it does it work I thought we were you asked me

hypothetical right like I wasn't actually thinking about doing it because we should do it because you know you like I trust you

like a brother you know I know real estate you know Finance we could be a great team yep

and I was like oh okay well we should talk to our wives he

said I gotta talk to my wife

your wife right I was like okay well I gotta talk to my wife you know and uh

and I was like yeah but you know here's the thing bro I love you you know I love you but you'll know anything about mortgages

and so we're gonna be a little unevenly yoked right in this in a relationship

because should do everything or to train you on everything you know and he's like and then we're splitting everything 50

50. and he's like yeah that's true you know and I was like and I don't want to mess up our relationship you know

yeah and so he's like well you know what here's here's the thing you set it up

you tell me what we need to do how we're gonna do it as you're going to train your stuff I don't know blah blah blah

I'll fund it and then you put all the Sweat Equity into the thing

I was like okay oh so now that becomes worth it oh okay

well all right because I'm not feeling like I'm being taken advantage of yeah right you know what I'm saying I'm doing

all the work and I'm getting half the money right yep so I was like yeah okay

and we did that and then you know 16 years later we're still cooking now in

2019 uh we crossed over from being a

commercial mortgage broker to being a lender okay you know and and that

happened with a quick phone call a billion dollar mortgage fund called me and said hey do you have any paper that

you want to sell right so in other words I've got mortgages people are making payments

so so before you go further like explain what when somebody says paper what does

that mean I know what that means but more maybe the viewers the note okay the mortgage note so if if if there are 200

let's say there's 200 months of payments left yep right at a thousand dollars a

month right it's a time value of money calculation right so what is that what's the net

present value of that income stream right now and the value of the asset that's

there's a couple other factors and then also present interest rates right so if

I've got a note at seven percent in current rates are at

six [Music] that paper is worth more yeah right you

know because of the higher rate on it you know being relative so all those things it gets when you talk about

selling and buying paper it gets really complicated those are the

brilliant the bond investors on Wall Street are the really smart guys at the table okay versus guys are just buying

the company it gets way more complicated when you're looking at that side of it but so anyway

I told you guys listen I don't have any paper he's like what do you mean because we're just a broker he goes yeah

but when I search commercial loans in Michigan you're on the first page of Google you're doing something right and I'm like yeah our SEO game is pretty

good yeah there's no doubt about that but no I'm just a broker he's like well I'm Not A lender he was like oh

okay well you want to be one and I was like well what do you mean and he's like well you know if you're

doing you know good business we'll buy your paper so if you sell the paper yourself and

then we'll come behind it and buy it and then you know that which is how everyone works right that means Banks yeah you

know Banks just use Ginny May Fannie Mae Freddie Mac they do a mortgage they go

to Fannie Mae right that's why for for like uh rental

investors they can't get past 10 loans okay right yeah because the bank says I

gotta cut you off because Fannie Mae won't buy that 11th

note right they say the person can carry no more than 10 mortgages at any moment in

time they give you a hard time about number five too so yeah oh so they're

like okay well you know and so if the if the bank can't sell that paper and there's no

opportunity to create liquidity even just in case they need it later

they're like nah we're not doing it so you know now in in our sector there's

private money which is huge the private money market is huge because

everyone's getting to the real estate game you got Pension funds you got life insurance company you got hedge funds

you've got crowdfunding you have all these private money funds

that are now investing in commercial paper and I say commercial paper being

mortgages that are not on residential home loans

okay so there was a thing in the in the paper some of you guys may have seen it where like Blackstone was getting into

the rental market yeah where they were buying rental property because they're like they're like you guys they're

looking at I'm getting a thousand dollars in rent

for a house it only cost this much money that's way better return than a bond and

I got Security in that investment yeah right so now these guys are playing

in that pond you know so we went through the vetting process and

with those guys and after you know a few months or I would say a few probably about two months uh we became a lender

so now I have three funds the three mortgage funds that that fuel all my

paper internally that's awesome now real quick now real quick anybody out there

who has any questions for this man for myself anything like that put them in

the comments please we will answer them here you know you know Sunny uh Sunny Harvin we see

you here I know you're using your daughter's account here so uh great at least you're joining us now

Mike Michael ostranger Ostrander oh great dude it was great meeting you the

other day uh great to have you here anybody who's here put a comment in there put a comment in the in the chat

ask your questions let us know while we're talking we'll answer them as we go

but let's interact this is a two-way street everybody all right

if for some reason you're watching us replay still leave a comment I will answer them right away as much as

possible so just let you know now so we'll get back back on track here

now as far also anybody who doesn't understand what paper is leave a comment we can explain a little bit further into

detail if you don't any questions you have please let us know so

back to what you're saying you know happy to

kind of work from there and I see where we do

we are still a broker so because no lender

funds everything right yeah so there's deals that you

know you know we don't do I mean you know we don't do every circumstance right so

on situations where it someone brings me a deal that is a a fundable deal

but it's just not fundable with my internal paper that's when I'll go

outside and I'll take my lender hat off yeah and I put my broker hat on and then

there's other Capital sources that we work with uh that we close business with you know

whatever it happened we still right heard of it because typically when you go to the bank and the bank says no

you know you're out exactly you know because the bank because and this is

something some people don't know and what matter of fact I'm writing a book right now on funding the unbankable

deal okay there's a there's a section of chapter narrow about how the internal

the inside baseball of how Banks work right it's just every loan officer at the bank also has a deposit

quota so many loans per quarter but they also about to bring in so many so much money

and deposits because that's the flow everything happens when a bank brings in money and

so if someone does a loan at Chase for

let's say you know a million dollar apartment building hypothetically Chase also wants to do all the banking on all

those rents through Chase yep as a condition of the loan now if that person is banking at PNC Bank

and PNC Bank wouldn't do the deal but Chase would you know then they're going to leave PNC

Bank yep there's no there's no Universe where Chase is going to let that cash

flow go through someone else and they they didn't like it that's that's not

gonna happen that so that being the case when PNC turned you down they don't say

oh well Chase is lending on multi-family right now right

they don't do it they just say well we're sorry we couldn't help you you know the next deal

right well you know I I tell a story and in my book of

I I met with a bank VP about referring business to us because we typically don't deal uh with banks on a

lot of our financing yep and they and our non-bank lenders don't have deposit

minimum so we don't care where they like when I do alone myself I don't care where they Bank okay so it's safe for

the bank to send me a customer that they turned down I do the loan and they stay at at that bank yeah right so I'm doing

lunch with this guy we're walking out of this restaurant in Birmingham we're headed back to uh their their brain

branch and and Bloomfield the guy says oh by the way the fact that we're not doing Inland

or multi-family right now don't mention that that that's that's confidential you know we talked about we're going to

share some confidential stuff yeah so and by the way that's also a confidential loan officer so don't tell

him either [Laughter] wait a minute your old guy don't know right

wow that's messed up that's messed up but that's why if you guys go on

LinkedIn and you look at the profile of the typical Banker

or commercial loan officer at the bank yeah most of them have a tenure no more than three years at any one Institution

and then they're jumping ship to someone else you know for various reasons but a lot of it because you know they play

games with their bonus yeah they're trying to do loans they're trying to bring in deposits

and they're like okay I'm stuck at like 50 Grand and I can't you know I should do better

than that so we got a question from Terry Penny which awesome person by the way uh

hopefully I'll have her next on my podcast uh but she said hey

what's the typical minimum uh loan amount for a commercial loan

that varies depending on the type of property okay right so multi-family is

different from retail which is different from industrial different

locations will also have minimums okay so sometimes like like like one of

our funds they're very very robust in their lending but

if they're dealing with the property in Detroit I was just about to ask typically yep

they won't do anything under uh five hundred thousand dollars okay you know if they're doing if I'm

doing like example fix and flips you know we're doing sfr fix and flips

there's some folks that are like yeah we'll go down to 75 000 or 50 000. but

in these certain markets and they'll say Miami San Diego Detroit Boston now name

them in any of these markets minimum is a hundred thousand right

so location will come in we'll we'll come into play most of our commercial

stuff especially if we're doing Bridge loans we can go down to 200 000.

okay if we're not doing a bridge loan and we're doing straight long-term financing then a lot of our programs the

minimum starts at 500 000. got it so Ron uh Ron Harrell and I know I

butchered that last name sorry about that uh the reason it says Facebook on the screen is because it's from the

Facebook group if you haven't been from the face if you haven't uh if you're not on the Facebook group it's Metro Detroit

off-market Real Estate Group on Facebook come join

but if you want a better viewing experience view Us on YouTube all right I'm trying to build that channel as much

as possible like subscribe on YouTube uh please do now he he does ask what is the

typical credit score needed to be approved for a Fix and Flip loan for either a single or multi-family loan I'm

assuming you only do for multi-family or do you do for single family for Fix and

Flip as well yeah we do you do oh okay yeah what's the typical we do credit

score typically well multi-family

is going to be like 680. okay okay minimum okay minimum we like 700 and

above got it and when I say we right

this is most lenders yeah you know most most of us are going to be competitive yeah okay so

the exception to the rules if you're doing a bridge loan okay the bridge loans are way more they're short-term

commercial loans that are for properties that do not qualify

for traditional long-term financing because there's some type of what we call hair on the deal okay that makes it

unattractive or just or makes it undoable from a long time perspective okay they have looser

guidelines by definition so they may be able to go a little bit lower they may go 660. okay so

but you go below 660 is tough yeah it's tough on single family uh fix and

flips and that kind of stuff same thing uh 680 maybe 660 right now because rates

have gone up so much yeah over the last 12 months a lot of lenders

us included we've hedged our Risk by increasing our

FICO scores oh okay so where some programs that used to be 640 they're now

660. it was our 660 they're now at 680. the ones at 680 are now at 700. now how

much of that is related into the deal the credit score versus the actual deal

you know obviously the deal matters a lot that of course just check your box it's a check your box type okay

yeah okay but you're you're mainly look your core values are mainly looking at the deal but you still have to check

that box for the credit score you still got to just check that box for the credit score got it yep you can have LOE

letter of explanations yep for certain things  but they still want to see

uh and understand everybody's getting more conservative yep everyone's getting more conservative I'm scared I have to

get more conservative on my numbers when I wholesale a deal and unfortunately that's the reason why I haven't had a

lot of deals coming through lately is because the numbers have to be conservative and when you get other

wholesalers just spewing out crap and then they don't sell it because of that

then they're breaking them down breaking them down and then now that that buyer or that seller is just sick

and tired of it you know yes it's all fun and Giggles until you don't make money yep right you know and so the game

of underwriting is like a game of musical chairs you know when the Music Stops do you

still have a place to sit and no one wants to be that person that

okay between credit and the value of the property not being what it should yeah

any problem is not as strong as it is the the rent roll was weak the operating

statement was full of holes when it came to the expenses okay I'm not I'm out

right I'm out so this is not Lila this is sunny Harvin

okay he's using his daughter's account he says do all uh Fix and Flip loans

work using uh a draw method my partners and I can't see uh why that's helpful

helpful if we have a have to have the money up front for a minimum materials

or something like that I'll let you answer that I have a reasoning for that but I'll let you take

that one well I mean lending is all about risk right so if if I'm doing a

deal where let's say the purchase and I'll use like an sfr Fix and Flip right so let's say

Sunday you got a deal you're buying it for a hundred your uh rehab budget is 50 000.

and your arv your after repaired value is going to be

say 240. okay hypothetically

well you know we'll go up to 85 percent of the purchase price right

right so we'll land up to 85 000 okay now this is where if there's a hiccup

and let's say that and that person's at let's say 760. okay well say Sonny comes in that week

we pull his credit now he's at 720. okay what I may drop us down to 80 of the

purchase price right okay right you know he gets down to 680

as his mid score that may take that down to 75 percent of the purchase price [Music]

so the more perceived risk right the less we're we're lending let's stick

with the draw question for a second we're always going to find 100 of the rehab functions you know now that's going to be on a

draw basis everyone does reimbursement I I know very few people that'll do

it up front because the problem from a lending perspective is I give the guy to 50 Grand

he doesn't do the work so now he owes me the 80 let's say I did

80 on the value for simple math I gave him 80 000 for the purchase and I gave another 50. for the construction not his

enemy for 130. but the work never got done yes that means it's a hundred thousand

dollar property yep I'm screwed yeah right

you know so lenders are like no you give us a draw schedule

you gave us you know your scope of work and then you say you're going to do hypothetically I've got fifty thousand

let's say ten thousand was the kitchen you call and say hey Malcolm I'm ready for my draw we send someone out they

look at the kitchen they say he was going to put in granite countertops and

you know uh glass backsplash you know new cabinets blah

blah blah and we'll say yep that's about ten thousand dollars worth of work we released the ten thousand

now we go the inspector goes in and says actually he did about 50 of the kitchen it's not quite finished yet what was his

budget 10 grand okay so we're going to release five thousand dollars and then that money is wired

within a couple days right to the investors bank account got it

so you control as an investor though you have full control of that draw yep you

know in the respect of am I going to do and I and just again going with the

fifty thousand dollar number am I gonna do five draws at 10 a piece am I going

to do one draw at 50 at the very end am I going to 225 you decide

when you're ready so you basically you just need enough money to fund that first draw got it

so essentially that's exactly what I was going to say as far as it's about risk

and it's not even about the risk of the of the investor it's actually the risk

with the contractor too because contractors could take your money and run

right they could they could take your money and and just never show up the next day and

what's going to happen you know right now we're not sitting here saying that you're going to be stupid enough to pay

them all up front but some people have and whatever money

you're out of by paying them up front now you're just down that much money

how are you going to pay that up you know right right so you manage your risk the same way we do exactly right

you should never I'm gonna tell you this if it you should always talk to a

contractor and pay for the materials yourself

okay and you pay for the materials yourself and you pay him up for labor

that's how that's how you should be having it um if you don't do it that way

the contractor is going to double dip on You by charging your labor and he's going to up charge you on the materials

at least 20 percent right okay so always have it written

that way if you can just you gotta keep on them about doing the work as far as

getting the material because you don't want them waiting on you well and that gets to something you said

earlier Randy about having a good team yes right you're going to have good

contractors that you know and trust you got a good relationship with you know if

you don't then the best next best thing is to get referrals from people that have already done stuff

you know it's like the guy that had the multi-family in York right he was a referral because he

didn't have a lender right from another investor buddy that did three deals with me

right yep and so that guy was like oh you need to get my guy Malcolm you know this guy's awesome

you know and so and because he had a good experience he felt confident and so that that

specific client in that situation his realtor recommended another lender to

him but he didn't want to use the guy because it wasn't really a referral it

was just here's a bank I think can do it yeah right versus his buddy said I

closed three deals with this guy and they've been great and he's like okay I can trust that yeah right because

not only that but now he's not going in with a wall up with you

he's are you he's already breaking broken down that way he's got a layer expectation yeah because his buddy told

him this is what it's like working with Malcolm just like if it was if I was a plumber yes right and I'm not I'm using

me as an example but this would apply to a plumber a guy that still do your drywall someone is doing your electrical

okay did they work out when they worked for you did they do what they said they're gonna do do they meet the the

time frames they come in on budget you know all those things are going to be important I want to say one thing too

about construction or rehab work when you get to larger projects

uh multi larger multi-family rehabs and things like that you know the lender is

going to come behind and ask for a feasibility study okay okay and what a feasibility study

is you you tell me I'm putting in two hundred thousand dollars and let's let's

say you're doing 10 units you're going to rehab 20 000 a unit okay the feasibility study is going to

look at your scope of work and say based on the improvements you're

making is it reasonable it's going to cost two hundred thousand dollars

and Is it feasible they're going to put in again you know granite and bamboo and

blah blah blah blah and they're gonna do that for three thousand dollars yeah

and that can so you don't really have that when you're doing most like sfr

rehabs but when you get to commercial industrial and and multi-family yeah

you will have feasibility reports they're going to double check your numbers and it won't be a lending guy

doing it's going to be a construction guy right so that brings me up to this

next question that Michael brought up what would be uh the minimum DCR on a

multi-family deal DCR is deck service coverage ratio

right so uh that's the gap between the

payment and the net operating income yep okay so using a you know again let's

say I had a multi-family and after expenses after uh you know taxes

Insurance maintenance Property Management blah blah blah you know I'm netting eight thousand dollars a month

okay and my debt service is four thousand dollars a month

okay yep so that ratio is actually 2.0 okay

right and so if I was doing let's say and I use a house for example if my

payment was a thousand bucks and my net operating was twelve hundred dollars now I'm at a 1.2

okay okay 1.2 is going to be typically your minimum okay

for most uh underwriting guidelines with most

lenders you will have risk factors that can move that number though okay okay so for guys that

let's say he's got low experience yeah you know so we're really you know

in the 60s we're testing is great his capabilities low then we may say we need

to say 1.25 okay or the location is a little hanky

not hanky enough he won't do it but hanky enough to make us a little nervous and we're gonna make sure it's

got a 1.3 on the dead surface got it right okay all things being equal 1.2 should be

reasonable if you're doing commercial uh retail industrial office that kind of

thing you're going to be looking at a 1.3 okay as a minimum at a minimum wind

gusts up to 1.35 okay so

now I have a question as far as do you ever get leads on people trying to sell

the property say they're they're trying to do a cash out refund or they're

trying to see how they can and and they decide you know what I just I think I

want to sell instead of go through all that process do you ever get people like that

typically no okay typically no I mean if the investor really if they're coming

out for a cash refi they want to keep their property right right so and if the

if the cash re-fight because typically happens the cash free fight doesn't work out instead of saying

sell they'll just say well I'll just hold on to a little while longer yeah and and let the natural

progressions of the rents go up over time to where they got enough of a spread because the the bigger the net

operating income the bigger the value got it right so so another reason why I

was asking about this is like how can how can we be of service to you or how

can we be service to you could be a service to MOA I'm

just kidding like if someone where where people can be of service to me yes I mean you know

I'm I make money off the river not the reservoir

got it yep it's the flow yep right so the off the flow of deals I'm one of

those people who like appraisers right like real estate agents right Linda I'm

making money off the flow of the the better the flow is the more my investors are buying and doing more stuff the

better it is for me right so if I can help my investors do more deals

you know it makes me more money right you know I'm not trying to make a killing off of one person yeah you know

I I and I and I mean my ideal situation as a business model is for me to have a

hundred investors that are doing 10 or more deals a year

rather a thousand investors doing one [Music] you know yeah now as a consequence of

that when guys like you find a deal and let's say you know what you don't want

to buy it for whatever reason yeah you know it's not you know it's a nice deal but it's not close enough to me

physically right right because you know most people want to deal that's within the half hour

drive of you know where they're at right or that you know maybe they don't like the numbers per se for their own

parameters you know they want to make they want to knock it out they want to get a home run you want to make 35 on

every deal this deal is only doing 20 that's too small for that okay well call

me with the deal okay send me the deal okay now I'm not

I'm a I am a lender I am not trying to get in your game of making money on the

seller real estate I'm never going to ask someone to say hey can you you know give me a little something on the side

you know you do what you do on the real estate side I'll do what I do on the lending

side right I don't I don't count someone else's money I'm not trying to pick their pocket but I I'm more than happy

to help someone move that real estate if I have another investor and I do have investors that are looking

to buy stuff and if they say and if I call them and then this Separates Me

from 99 of lenders they're dealing with all my investors I know what their criteria is and every time I run across

a deal that fits when I'm calling the phone and I'm like hey Randy I got this deal

it's a 12 unit it's on such and such you know the cash flow was good we'll

Finance it because obviously I'm not going to talk about a deal I can't Finance right right

here's what the down payment is going to look like because what the cash flow is going to look like when you're done here's what the ARB is going to be what

you think got it and so if you got a deal out there and it doesn't work for you you're

not interested in buying it maybe it's a shopping center and you want to do multi-family maybe it's a warehouse

you know yeah if it's a good deal

please send it to me then I can follow to one of my investors and have to make money you know okay

yeah most definitely and that's where I also

how I think investors can use you as well is a second pair of eyes looking

through the deal making sure the numbers work you know you're also somebody who's not going

to go behind somebody's back to try to steal a deal you know what I mean yeah I mean it's just whether it works or not

you know it just kind of goes from there so and that's back to what I said I'm an

investor but I don't I don't play in the same Market that right most of my

investors do you know right right I I do single tenant net lease properties

so me and my investor buddies when we have our our Sunday night conference

calls where we lay out what's our plan for the week we're like hey go check out this property or gross Bank go look at

this property you know we're looking at Singleton and

99.99 of my clients are not investing in that in that blue ocean so explain what

that means single tenant it would be like if an example

I had it we had a deal was a Subway okay right and Subway was leaving

okay so the building was empty got it okay when when commercial property is empty and it's not cash one it's worth

less yep right so we buy it at that lower amount and then we get Tropical

Smoothie in there the Smoothie size a 10-year triple net

lease corporate guarantee meaning if they move out they still got to pay us

the remainder of the lease term yeah those payments and they're paying let's say 400 000 a year

right so you do the math 400 000 divided by you know six and a half percent cap

rate equals blah you know we're buying it at this price okay it makes sense

yeah you know now do you ever work with a tenant about helping out with the

construction or anything like that because I know in commercial it's all on the tenant to do the

construction to to match what they want you know no not my wheelhouse got it all

right so you just kind of tell them hey we take care of the outside you take care

of the inside or whatever signage and the tennis that we deal with on on that

that kind of thing like you know uh Walgreens or Foot Locker or

Tropical Smoothies you know they they have who they want to use you know if it's a Starbucks they already have

relationships with who they're going to use them they have their cookie cutter people that knows exactly their system

that's exactly what they want corporate has specific guidelines

for how how that store has to look now I don't want to jump off too far right but

I do want to ask this how do you how did you develop those relationships to

get those people to you did you put up an ad on Craigslist did

you to find those as far as which relationships specifically to to get

like say the Subway or the the tropical smoothie into your building I mean are

they just calling you up because you have a vacant property are you listing it on something called like an MLs for

commercial YouTube I use YouTube what I use YouTube so when we market and

amen I don't know if this will be applicable to you guys right but like like my quote unquote competition they

don't do this stuff but you know there's a little free stuff but my people won't kill me

[Laughter] we do a YouTube video so but it's private it's not public

you can do a private video with you have the exact number the exactly backslash

one eight seven five three that kind of thing we'll do a private video on YouTube and then I send it to the prospective

tenant you know so there's a video of me you can't find it but it's on YouTube

that says hey I'm Malcolm Turner with blah blah Investment Group and this is

our Walgreens behind us this is the corner you got this business over here you got this business because

corporate tenants want to know what other corporate tenants are around that space yeah it's a whole different type of thing yeah so we explain the traffic

count in the area you know we show them as we swing the camera around I show them the other you

know corporate tenants that are that they like to be near that are near them right and I still show them outside of

the building in the parking lot is you know 13 000 square feet it's this this and this let's go take a look on the

inside and outside the video cuts and I'm on the inside of the building hey it's an empty shell it's move-in ready you know

blah blah blah it's really only like a three minute video tops okay

you know yeah corporate people's time is very it's worth well it's not a lot to

talk about but but it but what it does it gives them a sense of they can hear

the traffic they can see the you know they can see the traffic count going by and they're like oh okay you know and

then we go on the inside we just show them the show yep this is it blah blah blah call me and

then what I do is I send out that email to the the prospective tenant with a

link to that private video [Music] you know so I'll say hey I've got this

property I think you might be interested because every one of those businesses take for example like

Savoy sliders or Tropical Smoothie or Starbucks they've got guidelines on

what the real estate needs to look like for them to participate all right okay I

know what those guidelines are so only send them the stuff that fits their guidelines you know and then if they're interested

they call you know and then we you know we set up a site visit and sign the lease in in in our business

when they sign that lease as soon as that lease is Inked the value of that

property goes up immediately okay because you got guaranteed income coming

in for 10 years or 15 years or whatever it is okay you know I need to get the

commercial game that's the difference but the fundamentals are still the same

location location location right income income income

right buying here doing some type of value-add Yeah in our

situation the value add is getting the right tenant in there you know to get it here

yep you know and then you either flip it you know you know you might buy a

property at 400 000 and then now you you sign that that the corporate tenant now

it's worth eight hundred thousand okay you know and then you sell it you

know there's a Foot Locker on Greenfield and Eight Mile in Oak

Park across from the old Northland Mall yep right it's like a Kids Foot Locker

uh regular Foot Locker and then there's another like Lady Foot Locker I think and it looks like it's three

stores like a little mini strip mall yeah but in actuality it's one building developer went in

you know built that thing from from ground up signed the deal with Foot Locker and

immediately put that thing on the market at six and a six and a quarter six and a

half percent cap rate you know which was you know my estimate

was about a Mill and a half two meal more than what they expect

okay you know that's awesome yeah I I'm in the wrong

business I need to get into that commercial game so but you know you know hey it is what it is you got to work

your way up and that's kind of how you but I don't I don't compete with my clients that's good I'm not buying sfr

fixing flips I'm not buying multi-family you know

because I don't want that to be a conflict of interest I don't want someone to think about well man this is a really good deal it's off Market can I

share this with my lender yeah because you know I will always make more money

as an investor than I will as a lender you know

so 100 and and there's there's loan to own shops out there

that their whole purpose is to do quote unquote bad deals that they hope

intentionally go under got it because if I do a loan at 60 of value

and the guy's got terrible credit and you know the the property he has to work

his Exit Plan perfectly and it doesn't work now I got this property with 40

equity in it right you know where we don't play that game

you know no you and that's one thing I like about you even from the first time I met you

and I met you at a multi-family Meetup by the way so if you're not going to meetups you need to go to these meetups absolutely you meet guys like

this uh and go from there but you're you're super open Super honest and

that's what that's one thing that I really liked about you because that's that's what I do even in my wholesaling

business I still try to be as transparent as possible with even the

sellers right okay I was actually on an appointment today and I told him I may

not be your buyer this is what I do this is what I do it looks like you want more retail you may

have to go with a uh a realtor I can recommend one for you

uh and they sh they immediately shrugs I don't want to deal with a realtor and I'm like great I still make it appraised

and go great I'll follow up with you we'll go from there I was like but my number is this amount it was way under

what they were looking for right and I'm like hey this is the reason why this is what I think I can sell it for after

it's fixed up because of the interest rates being conservative and I gotta account for these big ticket

items that we just don't know about I I know they need to be replaced you know

well you know look I used to be a realtor yeah so I

can say this most Realtors are yahoos yeah

yeah I used to be one you know that's a there's some weird people the real on

the real as realtors in the real estate you know it's just because it's such a bit you know it's it's

it's so unprofessional in the in the sense that it's so easy to get into like anybody could do it yep and you take a

quick test and boom you're there and if you're a realtor out there and we're sorry yeah

that being said the the beauty of it from from my perspective too is in that

my business is the same a lot of guys that are commercial loan brokers they're yahoos too yeah okay you can't trust

them as far as you can throw them yep okay but but the the positive of that is

if you're good and you're a person of Integrity it's so easy to stand out yes

right because people been lied to so often

that when when someone does it and they're like oh my God this guy actually

gave me some advice that's to my benefit and not his holy Mo

I can't believe what I'm hearing is this right because it just you know what I'm saying the vast majority are so terrible

it's easy to to Excel and a good realtor like my my commercial realtor's worth

his weight in gold man and you know the guy just he makes us money and and you

know I wouldn't you know he he would have to go to heaven for me to switch to another

commercial realtor you know I'm not doing it you know because the good ones

that you trust and you know that are good they're just hard to find so when you find them

you know and I and I'm a guy that's real high on Integrity yeah you know

yeah you know yeah yeah Michael said he's a

broker and he hates many Realtors and uh Andre

says I'm a new I'm new to the uh that that has bothered me uh not enough

Education and Training before you can call yourself a realtor my lack of experience and knowledge has cost my

client 4K it bothers me and if it bothers you that's a good thing I'm

gonna say it uh if it does bother you it's a good thing so feel better man yeah and study

and this is him saying this again that is one reason he's going through so much

private education first hey 100 agree with you but also

don't just keep educating yourself take some action okay because this is what I

do is I've learned everything from one deal after the next and I try to create a team around me so that they pick up

the lack of Education well you gotta have a good Mentor

right that's true I I had a tremendous Mentor when I got in the commercial loan business

a guy out of Atlanta that you know first first thing he told me was Malcolm you got to have your fee

agreement tight because if you're doing a you know 10 million dollar deal you're

making a hundred grand yeah people will steal from you they'll let you do the deal they'll take

the 10 million and not pay you if you don't have that right yep you can't trust anything trust me verify right and

you know and I had a rock solid real estate attorney you know that wrote a top-notch you know

agreement I have a NDA at and a non-disclosure

agreement that I work with because people are sharing with me you know very sensitive information

right and I use instead of using my NDA to benefit me

I use my NDA to protect my clients got it right because my NDA says it's it's

bilateral right it goes both ways so anything that the client shares with me

whether it's a realtor a seller any of the financials you know all

that information is confidential yeah right so it's against my own agreement for you to come to me with a deal Randy

that you can't finance and me turn around and flip it to another investor you can do it yep right

that never happens of course never right right

you know ethically it should never happen right right but it kept us all

the time so yeah so I have it in writing yes so I also want to bring up this

thing about Mentor mentorship not everything on mentorship you need to pay

for or do anything now it's great that you can okay but

I never quote unquote had a full-time Mentor my mentor was the people around

me that I surround myself with and how I do that is the first person I jv'd with

first person Todd Chun great wholesaler great guy right okay he went through me

through the whole process if I ever had any questions I call them up and he he'd

answer them for me like he'd take that time out because then I did another deal with him I did another deal with him I

ended up doing another deal with them you know and so on and so forth to me that's the best mentorship because

now guess what I'm bringing him I'm adding value to him by bringing him deals and JB with him

and he's adding value to me because by giving me the knowledge and I'm making him still making money

you know so keep in mind that mentorship does not always have to be paid for it

also does not always have to be one person

I have a mentor in the commercial investment business yep

and I have a mentor uh in the commercial lending business now him and I don't talk as much anymore

because I needed more advice 16 years ago exactly what I do now but

and it is some you know there's some things that I choose to do that he disagrees with yeah right

because of uh you know uh you know I I

give away value that he's like he he would kill me for he's like dude you

need to correct for everything you know and but anyway uh but it's a

relationship so him I can call him up anytime and we can talk about anything

and him and I bonded over our mutual Faith yeah right and he has a ton of

mentees all over the country that he works with but he said to me this guy this is probably like 10 years ago he's

like the thing I love about you Malcolm is I no matter what we talk about whether it's it's business or family or

personal whatever he's like you don't cuss so and it irritates the hell I mean when

other guys talk and that might be a little thing yeah right but this is like a multi-million

dollar guy and he hates that crap yep right so

you know it just that little thing and then him and I can we you know I can

talk scripture with them you know I'm a deacon at my church and him and I can talk to scripture for like 25 minutes

and go deep and I'm right with him he loves that stuff yeah you know the flip

side of that is when I'm working on a deal if I've ever had challenges or something I can talk to him he'll give

me more time yeah find out where that relationship

works and what commonalities do you have and then you know you bond with people because the business is about

relationships to me yeah the better your team is the better your connections are the more successful you can be and I've

built a great relationship with quite a few people in this business you know I've worked with with dingra

Dean grosski I I've worked with I've had

him on this channel by the way a few times I I've worked with Phil Blake uh he's

he's coming there I've done some uh you know impromptu videos with him like he

like his level of philosophy and like he he's an engineer guy and he is

he has a wholesale business he does fix and flips buy and holds everything and he's automated a lot of this stuff

and that's where I'm trying to get to I'm trying to get my level up there but you know so like I'm on my way to get

out to him but I still look at Todd Sean as well and so I don't limit myself to

just one person as a mentor right but at the same time at the same time they all

have something in common and what do they all have in common one they've done deals and they've done

deals ethically right okay I don't want to work with

somebody who I know is 

going behind somebody's back or you know like they'll be the first person to say

I can go to them with Audi a contract being locked up and I don't have to worry about a thing right

I had a guy that we were doing an FHA loan on and I say FHA this FHA does

multi-family okay yeah okay I didn't know that yes there's a there's a

221d program and a 223f program through through HUD and FHA more than five units

yeah but but typically they're bigger deals they're like 2 million or more and

it's like the best it's actually how can I almost say the best it is the the best cash flow Loan

program out there because they'll do a 35-year amortization

non-recourse meaning no personal guarantees or that stuff yep the the

interest rate is through the floor I mean it's it's it's No One finances

lower with a lower interest rate than than FHA or Hut you know so I mean

they're going to be a you take whatever the best rate you think you can find and they're going to beat That by a full

point I mean it's not even close you know the negative of FHA is that uh they

take a long time to close okay okay but they'll do high LTV okay

and on the dscr they'll do like 1.15 okay you know so they'll do like a

skinny uh a skinny deal they'll do market rate you know low income housing

senior housing you know so it doesn't have to be you know again it's it's HUD FHA yeah but it could be Luxury

Apartments okay doesn't have to be like affordable you know strictly

but anyway this guy was I was working on this deal this is God this is

probably no more than two years uh maybe yeah maybe like two years into the business maybe three years into the

business and I got it and I was working with the

FHA map lender they can accelerate the process I won't get into the details of that but

the long story short the guy went around me and

I introduced it by Linda's name was John right and

I said who John was at the time John's not long retired but he you know did an internet search or

whatever found him directly called them and said hey I want to do this deal

and you know and uh John's like okay well we were just on the phone with Malcolm like two days ago you know why

aren't you talking about oh no I want to do this deal with you you know blah blah maybe we'll have to use Malcolm you know

blah blah blah and some loan programs the the broker is not an actual expense

to the borrower okay okay where you're paying the broker directly like you do on residential

there's some loan programs in commercial where the lender is compensating the

broker out of their pocket got it okay they're

not they're not ramping up their fee if they don't have a broker to make more money

you know flat out but if the broker is involved it's coming out of their cut they're not actually increasing the fees

to the borrower and so example with SBA or FHA those fees are set

yep so if I'm doing an FHA deal it's coming out the lender's pocket because

FHA does not allow you to throw fees on top of their very restrictive fee

schedule yep okay so this guy caught the the John end up calling me the next day

and he was like remember that guy we had a conference call with a couple days Derek so on and so on I'm like yeah he's

like yeah that guy called me directly tried to cut you out the deal and

I'm done so if you talk to that guy tell him never to call me lose my number

hmm and I was like Wow and and John's point was

if he would work with so little Integrity because I

explained him the deal I explained him the program and set him up with somebody that would do the deal

and then he would still come out and try to cut me out John's like I can't trust the operating

statement I can't trust the financial statements Yep this person his personal financial statement he's going to submit

because the guy has no integrity and this whole business is built on trust yes 100 so yeah I can't you know I can't

trust that guy and and to that you know to John it also looks bad on

you because you brought in that guy you know on unfortunately well yeah but

he probably understood he probably understood because we you know we all need guys in this business yeah who are

like it's all about the money yep okay yeah

this is business this is business ready I'm screwing you over man it's nothing personal it's just business okay

you know and like you mentioned Tai Chun great guy yes right great guy

I can work with great people yep love working with great people because you

know the you know the the real secret to building long-term

uh profitable relationships is you make sure everybody you do business with

makes money when I put my Investment Group together

right that I work with on my deals I called a select group of people and I

said hey guys we're going to do this putting this fun together we're going to do this we're having a meeting on Tuesday

and I was meeting at the church fact right and we're gonna do this meeting

Tuesday night and a couple of my guys like I don't care dude just tell me when wait a minute I tell you what we're

doing yet it don't matter [Laughter]

I'll show up just tell me time and place right and if if you Endeavor to make

sure everybody makes a minimum what you promised or more Yep like well

wait a minute I thought I was getting this and you actually threw a little bit extra in there okay great this is actually better than what I expected and

if every time you do business with people they make money they will never hesitate to join you in your endeavors

or recommend someone else yes join you and that's where building the

relationships come in handy because say I'm a wholesaler and I'm making my

buyers money by giving them properties that are are good margins things like that well guess what when I want to do

my own my first Fix and Flip guess where I'm going to come to to try to get some

connections to see if I can get some cheaper prices hey where did you buy this where do you get this can you hook

me up with your wholesaling uh connection for materials you know

whatever sometimes those people won't be the cheapest people right right yeah I

mean there's this you know but they'll get them done on time uh Zig Ziglar once said good things are seldom cheap and

cheap things are seldom good yep right and it's so true you know people you

can't have quality speed and cheap

yep right you can have two of the three but now I was just thinking about that

saying but I couldn't figure out exactly how it worked but I you literally it

could be cheap and fast right but it's not gonna be good right right and if it's good and fast

it's not going to be cheap right so it's like you know it's so you

got to pick your pick your poison if you would and if you got good people they may not be like you know like my real

estate attorney that I use there's no by no means the cheapest guy in town you know but he's the best guy I know

and I've known him like 30 years you know almost you know like 27 right yep

you know there's no one else I would use for that I don't think about what he charges me I know he's going to do what

I need him to do his advice is going to be top-notch oh by the way I I'm taking that clip that you just said

we're making a YouTube short out of it all right my VA Josie if you're

listening that what he said about the the three things make it make a short

out of that right there that that's gonna get hits right there I'm gonna tell you right now so because it's the

truth it's the truth you cannot I mean you can there's three things you

can only have two of them that's it you cannot have all three it's Gary this

this is just not going to happen and it applies to everything yeah right it

applies to everything right it's like what's your priority

you know what I'm saying are you going to give up speed yeah because you want it cheap and good

it certainly ain't gonna be fast right we'll get to it when we get to it

so I'm so we're coming up to the wrapping up here and I'm very glad that

I got you come on here I really appreciate it now how can people get a

hold of you contact you if they want to do a loan with you they want to just pick your brain about uh maybe they have

a deal that they want you to either fund or want you to underwrite to help them out whatever the case may be

how can people get a hold of you well our 800 number is

800-598-5530 I'm extension one uh my local number uh directed Michigan

is 248-579-8175 extension one both numbers

it goes directly to me okay you can find us on the web at Castle commercial capital

dot com we have a mobile lending app for your

phone okay so with our mobile lending app you can pre-qualify a deal

but in the purchase price the budget the expenses what the noi is and they'll let

you know if the deal qualifies for financing and what's the maximum loan amount so rather have the chase down

the loan officer to figure out you got a viable deal or not you can do it right on your phone and when we do we have 10

loan qualifiers on our app okay so whether it's long-term commercial

Bridge multi-family Bridge single family long you know single family long term

Single family you know Fix and Flip you know uh SBA

you know all that kind of stuff uh uh we do and when you go on the Google Play

store or the Apple App Store just put in Castle commercial capital

now we have those links in the description by the way okay and so if

you had a pedal yes so your YouTube channel we have all those links in the

description check out his YouTube channel happy to you know have it I happy to

have you here on mine so by all the links in the description even for the app for the

Google Play Store and for the Apple Store the links in the description I think

the app would be awesome to have so check it out you know if you're trying especially

if you're trying to underwrite a deal so right yep right right right and it's not

and you know I mean obviously the WHERE app works is you know we're qualifying our programs but in every

calculator we're actually qualifying it against anywhere from three to five loan

programs okay awesome so when you run a deal through our app and it says not

qualifies it's probably not going to qualify with anybody okay you know what I mean yep so you

know whoever your favorite lender is you know you can even use our app to qualify the deal and then take it to them

you know and not know you're not wasting your time you know

right so I really appreciate it

and I'm trying to see who wrote this but they said thank you for tonight it was great conversation uh Andre Andre

wrote this thank you I really appreciate that and so with that uh Malcolm I'll

bring you down just stay in stay in the background for a moment I will talk after all right but I really appreciate

it thank you thank you Malcolm thank you everybody who who's listening who's out

there if you please subscribe to the channel uh you know hit like helps the YouTube

algorithm uh check us out on YouTube if you're watching from the Facebook group

it's uh at Randy Stedwell on YouTube please check us out subscribe uh and go

from there now if you are not getting my emails about these please let me know uh

leave a comment comment with your email I'll add you to my email list I'm trying to send these out as much as possible

and kind of go from there thank you everyone for listening uh we're gonna next week you know what I'm gonna try to

bring on Terry Penny next week I'm going to talk with her see if her schedule not next week but the week after we're doing

every other week all right so I thank you everyone I appreciate that

appreciate saying good show uh have a great day and let's all do deals

together.

Real Estate Talk w/ Randy Stedwell Episode #7 | Mike Cooper Wholesaler & Investor his Journey →

On Episode 7 we will be talk with Mike Cooper who is a wholesaler and a Investor in the Detroit and Metro Detroit Area. We will learn how he got started and what lead up to his Real Estate career. Hopefully get to talking about why he does what he does and how he is successful.

Micheal Cooper

-Born in Inkster Mi

-Graduated From Ferris State University

Played football there

-started wholesaling in 2018

-Run non-profit organizations. (MOTOWN DREAMTEAM ACADEMY)

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

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www.twitter.com/RandyStedwell

All right how you doing everybody we are live we're just getting

real quick set up here so we can

go on here live and let's see

there we go all right so we are here again with

another episode of real estate talk with Randy Stedwell okay

I have here with me that uh by the way real estate talk with Randy Stedwell

hopefully you like the new logo let's see if you can get a good view of it there you go

I have with me Mike Cooper who is a great guy

you know awesome person to be around awesome person to get to know to talk

with uh talk shop with things like that he is a wholesaler he's an investor he's

a father he's you know by all means he is the a great guy to get to know

in this field so we're about to get to know him a little bit better okay so I'm gonna walk him up Mike Cooper Mike

how you doing well man well how about you oh I'm doing all right doing all

right so awesome so you're not hearing any feedback or anything are you not at

all no no no just me okay awesome so what I'm going to do here is uh let's

see so what we're going to do here is you know tell me a little bit about you

and your your origin story like how did you get into real estate as as a whole you know because everybody

wants to know that that oh hey what what made you do what you're doing because you're a wholesaler as well absolutely

absolutely absolutely absolutely absolutely yep and so you're you know tell me a little bit about you and you

know how you got involved and where you even heard of it all right so

um I was playing football at the University of Ferris State University uh and I know

breaking my foot playing ball I ended up being blood clots in my lungs so if you don't know what blood clots

his blood clots are very deadly I can kill you in a split second okay um and once I discovered I had blood

clots from the surgery uh the doctor came in and told me like I might not be

able to play football again in my whole life that was all my always my thought process like go to school go to college

go to NFL take care of my family right like I was I live breathe sports

right that's like my thing right when the doctor came in and told me after my after they caught blood clots in my

lungs that I might not play football again I cry I'm gonna cry because it's like I

love my family to death um so what happened was

I spent the night just on Google on my phone all day like how do how do how do how do I get rich how do millionaires

become rich how do this you know how do millionaires make their money and everything just come everything everything came back to real estate

okay cool cool so now I'm on YouTube like I'm like I'm in deep thought like

my mother she's gone because she's been at the hospital with like five days okay I just put myself in the dark like you

was on my phone all you see is my phone like I'm on them now I get on YouTube

and I'm searching searching searching searching and I'm like okay I'm in college I don't have a lot of capital and the

term wholesaler kept coming up so now I'm like okay awesome Okay cool so I got something I can do I educated myself I

educated myself uh and that's pretty much how I got my my intro into it okay

I end up I end up stopping so I probably like my junior year I ended up stopping

focusing on school um then I graduated I went to East Lansing I

worked for a little bit because wholesaler wasn't working in my location because I wasn't big rappers Big Rapids is not a hot market for any type of real

estate for real it's this you know transactions being done there but it wasn't something that really just caught

fire right yeah so um I started a Lawn Company I did that for

a while you know uh and I ended up having my daughter that's what really

clicked my daughter came I got very very serious with my time and my efforts

um and I was working at Amazon at the time that's like it's like a year and a half fast forward so I'm working at

Amazon or whatnot and I ended up getting into it with my manager completely disrespectful you know cussing is all

you know if you don't know about Amazon they work you like a dog right and it

was working us crazy hours in a Wonder time they got me on the east side of Detroit

crazy over there people getting robbed a Carthage and I'm talking to my friends I

don't want to go to Eastside Detroit no more like you can't you can't be keep put me over there it's dangerous over there like I don't think nobody should

be getting packages delivered over there because it's so dangerous and we had it we got into it what not

and we ended up item going my own way uh I understand let me go

and my mother my mother ended up hearing a fan Merrell a Dan marrow uh seminar on

the radio and she decided to take me you know she signed me up and I went there for the three-day training and it got got up there in the

middle of the so got he got up there in the middle so this is the middle of the but it stands I'm over here by the exit

right probably like 20 people right at him and

his he concluded the the seminar by saying a

lot of you guys came and got this information today but 85 percent of y'all 90 of y'all are not

going to take this information and do the work I taught my mother

he talking to me like I felt it in my spirit right he hit me right in my spirit when he said it I'm like I said I

look right to my mom said Mom he talking to me and that day on I just I just took action so that was that

wow that that's crazy because you know what a lot of people go to the seminars and again it's just like what she said

most of them they don't take action they don't what they like and one year all

right all right I'm gonna do this and and they get pumped up for the first day for the first two days sometimes even

for the first week yeah but then it just goes downhill and this

is where like in my opinion you know it helps to keep you know

people you surround yourself with people that are doing the same thing that are

or that are more successful from you so you can see exactly where you need to to

be and what you want to do so 100 you did they I think you did the right at

least you recognized it yeah what was so

my motivation was so high at the time like I didn't have no choice because you

gotta think it was sold I had I gotta tell you all this backstory so I went through so much

in that three months of really learning how to wholesale like so

uh my lady told me to tell y'all the story so I'm gonna tell it okay so let's hear it man yeah so

my daughter like my daughter just like my daughter's probably three months at the time right so I ain't got no excuses

to tell her my daughter none of that so I'm like okay I'll talk to my lady I

said look I'm gonna do this full time I'm gonna go out I'm gonna go hard for these next four five months I just need you to believe in me so I took my last

few checks and I paid rent for like two months you know and she you know she she helped me now and that's why I love her

to death um she held it down and she know she started paying a little billions in there

but I had a change jar I had a Monte Carlo 2002 silver Monte Carlo

I had a change yard from college that I had from college that I was saving up money from I had 7.75 to my name I

thought I paid all my bills yeah two months to rent I had 7.75 right

so what I did was this I kept studying but what I did was I took that 7.75 I put seven dollars in my

tank like I'm flat broke yeah I'm flat broke like all my phones are exhausted I'm flat broke

I take seven I take my seven dollars and put in my tank my tank need my tank knob valve didn't even work so how much gas I

got in there right yeah so um so I think I put the seven dollars in my

tank and I got 75 cent left so they told me on the YouTube video that I

was watching and educate myself on that if you go up to the probate the Probate Court downtown Detroit you can get the

newspaper like 75 cents okay so that's what I did and uh her name was Kathy I

love her to death I hope I uh get to contact her again she's like what are you what are you

what are you getting these nuts for I'm like well I'm starting a thing called wholesaler and my mentor basically said

on YouTube told me to get come down here call the people uh pre-foreclosures

foreclosures and probates to get leads so that's what I did and now I'm going

every Friday I mean they met I went there so much they started calling me Friday because every Friday I was there

consistently picking up the newest like all the papers for the week and I had

I had a I had money money through Friday a stack of newspapers with

sticky notes on like was thinking of something Monday Tuesday Wednesday Thursday Friday all around my house and

I had like little little side nose voicemail call back interested or whatnot and I did that for three months

straight three months straight and we before I got on the phone I role played with my

with my lady because I wanted to sound confident as possible you know and

that's the biggest thing like everybody want to cut down the tree but you got to shop you got to sharpen your blade first man you got to be you got to

be skilled you know you can't be on the phone uh uh you gotta have Supreme

confidence when you get on that phone with them Sellers and they putting all their confidence in you to get this

thing the job done so I had to train myself up get my confidence up slow down

stand up when I'm talking to actually understand what was really going on because it's not it wasn't it wasn't

easy but what I didn't what I did know was I wasn't going to quit I never been acquitted and that's not that's not I

ever got down like that so I just showed up every day to tell anybody that's watching this

just show up I think that's the biggest thing you may not like it you may hate it some days you may like it some days

but just showing up is the biggest the biggest key for me but yeah 7.75 got me started

wow 7.75 yep yep that's crazy so uh what did

you do with those lists I think when you did how did you skip did you skip Trace

some you know tell me tell me exactly how

you how how you did it what service did you use if you were free like how how like you didn't have any money how did

you skip tracing so look I had a phone I had I had a Google Voice number that was free at my cell phone

yeah I had no I didn't have no no dollar like Mojo or batch leads or anything like that I had just a cell phone

in a Google Voice number and what I did is with uh probates and

pre-foreclosures all that is County record that's and that's public record that's in the newspaper so all I did was

I would just stroll back to the last two pages of the newspaper and I have a list for the predecessors uh personal

representative there's a lawyer that's over that probate estate whatever I just called call call call for three months

straight um yeah so that's what I did man I I wasn't like I said I didn't have no I

didn't have no excuses like I got pictures with my daughter we on the phone together she won't stop

crying like I'm getting cussed out because my daughter like people on the phone um hey how's it going my name is

Michael well asset investment groups my uh my spill and my daughter's in the

background crying I'm getting cussed out anything I'm scamming or whatnot so I'll

be calling my daughter in my arm so she wouldn't stop like stop crying like I'll hold her here and I'll be on the phone

you know like I really had to like really buckle down because like I said it wasn't no excuses you know and I had to I had to leave my family revolved

with my family so it wouldn't know all I need a dollar or I need this or I need this I need that it was just like let's go to work

is that when you are put when you are putting the corner and

basically like hey I gotta provide for my family I got to do whatever it takes to go find a way as a man you'll find a

way that's just how it goes yes yes yes so I 100 I agree with that like Dean uh

actually says nice story Coop by the way so that's from from Dean you know

Steve my God like Dean is part of my whole process like awesome that's

actually his event is where we met yeah absolutely absolutely and it's crazy all the magic happens that Dean's Mastermind

so if you're not attending these masterminds attend okay all right um but

so it took me three months to get my first my first deal when I had multiple

multiple like appointments yeah my first appointment I took my daughter with me because she didn't have a babysitter I

didn't I couldn't afford babysitting like my daughter is literally I have a video she's strapped to my

chest you know I'm making a video on my she strapped to my chest I'm going through the property I didn't get that deal

I was going on a few more like oh my man when I say I'll embarrass myself so many times like I've been at Center's

house where I sit on ice and I'm like on a garage trying to keep myself up

like so much have happened to me over these last three to four years man I just never quit you know and that's

that's the biggest thing with with anything you're trying to achieve like you can't quit you can't go in with the

mindset of oh this might work no you got to go in there with complete faith and no hey it may not take it may not take

next may not be next week two years but if I constantly keep my rules online I'm

gonna find fish so yeah 100 paid

you know I'm I'm telling you no matter what I think the best thing that

happened to you is your daughter absolutely absolutely because if you if it was just you and

your girl don't get me wrong your girls are pretty motivated absolutely they're not as good motivator as that kid yeah

my daughter man my daughter is everything we have a huge huge huge huge connection like we we are that's my twin

you know but like I said man like I was oh so to bring it back um the balding so

yeah I'm calling it's like it's like my third month

middle of March end of March uh A lady called me back I left her a voicemail

I'm tired by the time I get up every day at nine o'clock and I'll call for three hours okay right it's here on the phone not

like not like the dollar where you just automatically go to another I'm darling yeah

like that is so tiring they don't get hung up on we cussed out so I left a voicemail her name was Gloria

I left her a voicemail and she called me back like an hour I'm in a nap I'm taking a nap with my child and I'm like

we sleep I get a call like hey this is Gloria Mike I got your voicemail I'm interested in my problem

I'm I'm getting out all the clothes I'm running right it's time to go uh I

dropped my daughter off and I go to the appointment I get the property on the contract

she wanted I think she wanted 45 and I I offered her 35. okay I got it on the

contract that day and then I went to Dean's Mastermind and nobody the same location

hey Mike don't you got something but yeah I do it's in Redford

just that fast I got her under contract the same day I closed well same day I got another contract I closed probably

15 days later but yep yeah but cool off the dean because like I said if I wasn't

in those rooms with these people like I don't know where I'd be at so big shout out to Dean man much love man for sure

most definitely so that that's the big thing is get yourself around these people because put yourself around them

get yourself networking with other people so that you you can get in the door you can see what they're buying if

you don't have anything right there you can at least ask the right questions what are you buying what area now you

can Target your Market your marketing towards those areas absolutely so you

know there's the bootstrapping like you did with the seven dollars but

you know you everybody I see out there on YouTube get into do wholesaling or

zero dollars for zero dollars so there's the thing is it's gonna take

you if you do it with zero dollars you're going to you're it's going to take you a lot more

time absolutely okay absolutely put a little bit of money into it

it's gonna take you a little bit less time it doesn't go up where you put a bunch

of money into it and you're just buying the whole business no you still have to put time into it but

the more you assets you have the more knowledge you have are accumulating with with the amount of

money that you put in absolutely absolutely and I think I

think the biggest thing too is um you got to be a student yes you have to be a student like people

don't understand how much Manpower that I've put in that it takes to be even successful not

even I'm not even I wouldn't consider myself I would consider myself successful because I would never quit so I'm already there

like my whole month and all I'm never going to stop until I hit my goal so I'm already successful but it took me

hitting the wall crying my friend telling me it was impossible

like like literally like I used to like really go through it like not having

support just like oh it ain't working oh you're doing this are you doing this and like I said I just had to keep my faith

I had to educate myself I'm an Avid Reader I'm actually reading this song before we got on the call I'm reading

this now .com yeah so I'm always educating myself about anything that does that happen

that that can help me evolve as a businessman as a person as a father as a coach as a mentor that's a mentee yeah

so this is one thing that I think that people can get out of is and you

should get out there if you get one thing out of this whole thing right here okay is

everyone as soon as you make one mistake or say this has gone wrong now you're

gonna get the people who don't know anything about it and come out and say I told you so I totally didn't work it's a

scam and I'm sorry probably a lot on that but

I'm telling you I'm telling you right now everyone comes out and does that

they don't know they don't touch it at all they don't know anything that they're doing about real estate they

just heard their friend they're this they're that it's a scam it's a scam it's a scam yeah listen I'm we're not

here saying this is a get rich quick scheme you gotta put hard work into this

this is a business absolutely read it like a business you don't treat it like a hobby okay so and that's where I want

to get to the next part is wholesaling is not the end game it is

the beginning me and you talked about this before this is the beginning absolutely okay if the

it's the lead into investing is to lead into

um you know Buy and Hold fix and flips you know once you get into those buying holes

that's your passive income absolutely I don't want to say it's all passing because you still got to do work in it

you still got to write out people but by all means you can't think that just wholesaling is

going to get get you rich but it's not going to sustaining absolutely not and what I'm learning is

what I think so I think that wholesaling is going to

help me dramatically long term because I can Outsource I can Source my own deals correct yep SQ alone helps me out with

so much uh because I don't have to depend on people to find me deals I can go find

this because I know how to find this I've just it took me three and a half four years I'm

constantly learning since today like I'm not I'm not I'm not perfect I'm not done learning right um but definitely being

able to find my own leads has helped me dramatically and I know that it helped me long term with

um Bond properties um if it's commercial if it's single

family whatever it is I can find it you know if it takes me get back on the

phone and cold calling people I can do that you know I kind of I'm kind of

you know um practice enough to be solid in majority areas

but my thing now is continue to surround myself with great people and learn from people that's in a

higher position than I am so yeah 100 100 agree with you on that

and the the only thing that the main thing that I would say is you know

continue learning like you said you said it yourself continue learning continue educating yourself

this is what's going to happen they're gonna they're gonna say no it didn't work it didn't work it didn't work after

a year passes you're going to show them the checks not this is just not one it's not a fluke check after check after

check after check this is what they're gonna do oh can you hook me up yeah

you become a real estate guy in that in your spirit everything in real estate people come to me now from I'm talking

about from people that I coach with yeah I coach a Sons I went to school with I become a real estate guy in my spirit

you know so my whole thing is to continue to grow my spirit um be able to add more value to people

and then I don't I don't I don't I don't uh hold grudges you know I just I

just continue to keep my faith it's not like oh whoa oh you thought it was gonna work you know what you didn't believe

and that's just a testament to my faith you know I think that

my mother allowed me to well she showed me how to

show up every day like through school I never miss school like if I wasn't suspended or sick I

didn't miss school half a days none of that so naturally showing up is a thing that I was just taught from birth

so that's all I do is just show up I show up and figure it out even if you know it might be a great day it might be

raining I might not feel well I just show up man and that's that's what it is that's what's been

working for me this these last five six months because I won't say

I'm perfect at all because it was a point in time where I did treat wholesaling like a hobby I'll be honest

with you and it it don't and it was like this yeah yeah you know now that I'm taking

it more as a business I'm here now yep you know I have I have leads coming in

every day you know I have I'm actually I have three properties I'm I have under contract now that I'm looking to get rid

of that's in the city of Detroit um so I'm I'm just excited man I'm excited with the momentum honestly I'm

just I'm excited and I'm grateful well send them over to me if you want JV let's get it man it's good happy to do

it no that's one thing is just like you said you showed up okay

and you had the same thing that my mother taught me is when I was kid when I was a kid she

always I'd be like why I'm sick you know I I I got a bad test today you know

she's like boy get your bed up get your butt up and go to school

that's fine but you gotta go to school that was my mom we didn't I didn't miss

school like okay from kindergarten to college I probably missed five days yeah no

exaggeration no exaggeration probably a little bit more I was sick a couple times I got to spend it once in high

school but one day it's Petty yeah um but I didn't miss school even in college like junior college and once I went to

First Once I got to Ferris State University in a cold my friends would be playing up all night playing the game

with the girls man I'm asleep I gotta go to school in the morning because I'm not trying to be here my job is to get here

and then continue to move on move forward you know a lot of a lot of my guys you know they kind of

became stagnant because Mama pops wasn't there to tell him hey get up and go to school do your homework I was already

trained yeah my transmission

yeah it's crazy though you know but so tell me a little bit about what

strategies are you using now that you learn from those first deal so what strategy what marketing strategies are

you using now so I'm doing text messages uh cold caller and digital marketing so

Facebook ads okay

what's crazy is this if you're a new wholesale of your old wholesaler post your success man

because people come and find you out of all walks of life so I had to do I just closed probably the end of February and

of January and I and I told myself 2023 I was going to start posting more

content you know yep becoming becoming a spirit for my audience and that's what I started doing I put hashtags and this

down in the third and I wasn't even doing Facebook ads at this time I was just text messages and cold calling and a guy his name uh one of my guys he

did my Facebook ads now reached out to me just because you see my posts hey Mike I see what you got going on I love

to be able to add value to what you got going on if you got a minute to talk please give me a call talk to him I

vetted him out talk to some of the people he worked with in the past working with um like two months now

I have no complaints at all oh my God he's awesome um and I continue to just do more and

continue to scale continue to learn because you learn give it get my my 2023

goal is of course my a units like we talked about yeah uh get those but also

a mentor find a mentor that that's going to hold me to a standard uh but also I

can learn from that's the biggest thing with me I just I just want to learn man I just want to learn and grow and be able to be a voice

uh for my family my daughter uh my lady my mother the kids that I

coach you know I just want to be able to hey coach who know how to do this or my dad um I just want to be able to add

value to people because I grew up I grew up rough ain't nobody even graduate college where

I'm from you know so being able to graduate college and then also now also been able to you know continue my

journey in real estate man is amazing you know and I just want to continue to uh inspire people to do better because

you can't do but you got to get some more information yeah yeah that's the good thing is that you have

to figure out you know what works for you as well you know so one one thing

that I've seen that that works for you is just getting out there talking about yourself talking about what you're doing

and I think that works for everybody because guess what people in your Outer Circle you think that they don't care

they don't know anything you know if you get to talking about what you do hey we buy houses that are

junk we like houses that have long grass we you know if you come across anything

let us know absolutely and next thing you know you got

you got your second third cousin saying you know what I have my neighbor over

here he just passed away absolutely our family over here is cleaning out

cleaning out the property you know um you know you it might be something

you might be interested in hey you're like hey we get finders fees for people who yeah because deals if we close on

the deal we'll give you a finder speed people always love money yeah yeah absolutely and like I say um

and I don't I you know you know us been on this platform I don't want to seem like I'm just a good guy or I'm just too

good I'm just dead I was the worst at wholesaling I was the worst at getting on the phone you guys my lady my listen

we used to laugh and crack up all the time because we need to recording he's like oh my God sounds bad you know I

mean repetition

like I say I struggle man I I got these last my first year I did well my second

and third year I did I did it was bad but this year's I forget you know more deals this year

than I've done in my last two years okay just being more consistent with my marketing and being more consistent with

my goals yep all right and hold myself to a higher standard I think that's the key to all of it sometimes just hold

yourself to a certain standard you know if you don't if you allow see work you're gonna get see results

plain and simple 100 if you all here you know you got to do 100 calls a day and you are here

giving 25 50 calls a day you're not gonna hit your girl so don't feel don't be upset when you don't hit your goal

you know um like I said just repetition repetition man yes so that's one thing

that you know it is the key thing is but um you know you don't want to be

repeating all or bad patterns you want to recognize what you're doing so if you

need to record yourself and watch a recording listen to yourself and figure out guess what there's always

another call to make absolutely okay so but if you take that and you don't do

anything with it that's the key you need to improve yourself every single time so

if I get on a call and I'm like I got this guy cussing me out okay like I

don't want to sell to you guys I don't want to sell you guys are making my neighborhood look bad blah blah blah

this and that by the way it's the opposite all right but anyways uh you know and so what do I do

I'm like okay sir you know thank you blah blah blah or if I pop off the

handle and I do something I go back and I listen to that recording essay what

could I have said differently to calm the situation to calm him and

guess what maybe turn into something good absolutely absolutely I have I have

multiple conversations like that where I just so I do marketing as well so we have a

thing where we have eight steps so the one one in six is my favorite

have a positive two out of two and then maintain number six is maintain a positive mental attitude okay you can

have it but then you can also maintain it so that's my whole thought process on the phone I come in with I come in with great

energy majority of the time I'm standing up so they can they feel me you know I'm standing up I talk deep I breathe in and

no matter what they going through no matter you know if I don't get if I don't get the uh the appointment or the contract I don't be like oh that's not

working okay what's the next let's go you know if they cussing me out then because I don't have people dudes ladies

call me or types of names all my name do this do that do this dang you say no

yeah but they go they go they want to hurt your feelings yeah so like I said having

a positive mental attitude and then maintaining it you know that's the biggest thing for me right now I just maintaining my positive into attitude

and not letting them discourage me because it can be always worse it can though oh

it could always be worse so I don't I don't really trip and then like I said me coming from where I come from I've seen I've seen worse so this is like you

telling me no that's fine that's cool

but then we may have gotten Frozen a little bit me one second sorry it was

hold on Mikey there

he froze he Froze all right let's see

let's see if he comes back so sorry about that but he is 100 right on

that I'm going to tell you that right now is 100 right as far as uh kit

keep yourself surrounded by uh as many

people as you can all right keep the positive attitude uh he's gonna come back in here in a minute

sounds like but keep the positive attitude throughout the whole call okay start off

if you're sitting here and you're slouching and you're making a call hello

I'm looking for Mr Schiller over here I'm looking for somebody who's on 18123

Main Street you know hello sir no you got to bring the energy bring the

positive stand up straight talk smart that's the one thing I love if you're on

a phone call okay and you're bringing in here and you're smiling okay smiling is

the key on a phone call did I lose you everybody everybody says they like

kid you not all right so did you lose me already let's see

don't do that again Mike said well come on come on all right Mike can you hear me yeah I can hear you my Wi-Fi

excuse me now no I can't hear you what the world's going on I can't hear you

uh let me see

what in the world okay you're on the show let's see what about now

no can't hear you all right one second yep all right so while he gets his audio

chat coming in like I said keep the positive attitude

oh you can hear him all right let's see then maybe it's mine

you hear me now yep I can hear you now perfect my bad bro that's why I stayed in the office

because my wife at the hospital sometimes what would I miss I'm sorry all right so

I was just kind of following up on what you were saying about you know um so yeah you know everybody's saying

that they could hear you before I guess it was my it was my microphone so I apologize I I meant but like I said I

was just kind of going on what you said you know as far as you know when you're cold calling you you're you're standing

up you're smiling you're you're having a good time things like that gotta keep keep that momentum up you know so

so I'm good with uh all right so we're on here cold calling they're doing

all this now where are you at right now as far as your protocol are you still

doing it all yourself are you hiring a virtual assistant uh where are you at with that so I'll so

I have a partner that does my cold calling okay um I had a VA for a while and I'll probably hire her back because

she was awesome um but I'm not doing like a bunch of volume

cold calling it's more just like particular zip codes maybe like I pulled a list of two three hundred

people maybe 50 people like very very like very specific zip codes like in like say

for example I'll put like a list of 100 bacon properties and 48219 that are

brick or three bedrooms so more just like cold calling wise more specific

text messages wise I'll probably do the whole zip code okay um and like I said Facebook

Facebook has probably been been my most consistent so far A little pricey yeah

oh so I spent anywhere from 20 to 25 bucks per lead okay I'll

probably spent I probably spent like a thousand fifteen hundred bucks a month okay any deals that you get

I've closed two deals with him since the end of January and I have two I have

two duplexes now that I'm looking to get rid of and I got I got well I have five leads come in today so awesome man I

enjoy I enjoy the digital marketing um I'll probably add some more like uh PPC

as well give me some landing pages going and it's like I didn't know about

none of this last like three four years ago like I was completely like it's cold call Coco Coco Coco but it's like

I don't I prefer the marketing where the lease coming to me yeah Mr Cooper yeah

but I don't want to chase leads all day long it's fine I mean and it may you have to do at some point in time yeah

you know but it's very very tiring yeah you know you can get you can get very

yo P make you can lose your PMA very fast cold calling because you dealing with people that's having bad days

sometimes you know that dealing with family issues and then me calling probates probate leads those people are emotional

they just lost a family member you know so I had to understand that too like they just lost a family member maybe on

the phone like I just lost my my mother two days ago you calling my phone blah blah and I'd be like and I just keep my

positive until I say I miss I apologize I'm just doing I'm just doing what's best for me and my company right now you

know I I don't mean to be disrespectful I would just calling to see would you be interested in selling that property you

know if she gives me if she gets so I try to kill her negative with my positives what

you going through you know um if it's a relatable I I lost my grandmother or my grandfather not too

long ago as well you know I completely understand where you're going from if you don't want to talk today and do a lot to me if you if you like to uh call

back in a few weeks a few months I could definitely do that too as well you know I try to be as very I try to be as very

trying to be relatable as possible yeah I try to I

don't try to be forceful that's not that's never been my ski my my thing I've never been like a forceful sales

person or anything like I've never been a first a forceful person so my thing is if it's gonna come it comes if it don't

then hey we're just not to fit for each other and that's fine too and that is one thing that I want to bring to the

new people out there is this don't think you're going to come in here you're going to do wholesaling you're going to

convince people to sell it we are not here and I say this time and time again we are not here to convince people we

are here to give them Solutions

hey look we want to do this more often man yeah man well yeah man it's just like I say uh

for everybody's out there watching on just learn and grow and just try to

sharpen you up sharpen your blade here you know for somebody who is new brand new don't know what to do

what would you recommend Ed so they just heard about full sailing

okay they went through a seminar or watched a few YouTube videos things like

that what would you recommend them starting off doing do they have money or no money

very little budget

to a thousand I will cold call I will pull a list of making properties

I say owners I will cold call because it's the most cost effective and not only that

it's like blah it's right in your face yeah you know you gotta get you gotta get used to

hearing no you got to build that callus it's like a muscle you can't if you can't deal with no this ain't the

business for you

my first deal I wouldn't invest

I would invest in a mentor okay because honestly what's crazy is this if I can

do go back and do it again yep I would I would have got my first deal

and I would have spent it on mentorship so how much was your first year by the way 10 grand

right right so um listen in my head okay so look

when I cut my first deal I wasn't super like super overly excited I just knew

that if I could do it once I can do it multiple times over again yeah so if I had I'm already rich because I got proof

of concept yes I'm always going to constant a confident person with my sports background and whatnot so once I

did it I'm like oh I'm rich I could use whatever I can do this all over again but I had an employee mindset yep so

that 10 grand didn't last me nothing about a month and a half too yeah because

I'm thinking oh it's gonna come back it's gonna be it's gonna be like that but it's like I just grind I just took

it took me three months to get that 10 grand the most money I've ever made in my life from us my taxes a student refund you doing my lawn service

tinkering right then and there um like I said I would have took I would have took a thousand probably pay the

bills 1500 pay the bills gave it to my lady hey look here here's that I took the 8500 and found me a mentor to help

me through the fire because man if you don't know what you're doing

you gonna bump your head 100 I multiple times and if you don't

have the skin for it you're gonna quit I know I know I know a bunch of guys

that can quit ran out the business um

they came in with me that started with me like pretty a bunch of guys that just started but like I say I just never stopped and I think I I

created that to my mother and also my sports background because I feel like me personally at the

apartment after the Collision athlete if you can go through a season of football you could be successful anything you

want to do you hate your mom right yep because football is a physical it's a physical and mental Sport and it's

violent you know if you can do with the ground of being a a playing at a high level as

after I feel like you can accomplish anything because you go through all the time you put your body through

utmost of pressure your sore your hamstrings hurt your finger messed up you got a headache

if your toes messed up so I like that grit the grid of me playing football I'm

like I'm not quitting like I said I had proof of concept for me making that first my first check of 10 grand I'm

like I got proof of Concepts once I taught myself how to do it

um I was I was good like I said I taught myself so much now I have to go get new information from

me yeah see you're lucky that yours was 10 grand I always I was hearing for that

10 grand yeah I'm trying to get it but my first bill at JV with somebody

my portion of it was only thirteen hundred dollars hey

that's thirteen hundred dollars because it proved the concept proof of

Concepts all you need and you said it's crazy as this right um after I did it I didn't even cash my

check I just showed it to I just showed it to the people that my family my friend whoa mainly my code my friend

that just didn't believe oh cool you gonna go out there and he gonna say you I said yeah yeah it's gonna happen just

like that yeah you you lying you don't know what you're talking about I said okay all right and that kind of gave me

a little fuel too you know and I never I never mentioned it because small things to a John that's what my

mother told me that small things to a job you know don't don't get don't get caught up on small things right

okay cool and when I did it I might listen to you I opened the envelope you see my name

when I say I told you yeah yeah I have faith man that's what it is about me my faith is just so

strong yep you know I always I always I always believe I can do anything in this world I'm always being that type of

person like if he can do I can do it if it's been done I could do that too so yeah my favorite's always been strong

and I think that I credit that to me being here now my faith most definitely so this is this is

Michael I Strang her and I I really apologize if I messed up this name he

goes 3 500 was his first deal I see that's big time that that hey that's

awesome that's big time man duplicate that process and and go from there

absolutely absolutely and you know you just got a few more and to go and

everything hey you never know this is why I try to

you know hey JV with the process and and uh so you can know the process and

get to get it going and then I would rather split 50 or something than have

100 nothing absolutely all day long okay so for me it's like and this is what I'm

offering for anybody out there that's watching by the way and I've already told you Mike on this as well

I will bring you on here I'll have an hour session with you with you we'll

record it just like we're doing here and right now I'm doing I'm absolutely free so I can get more content okay

Absolutely I'll show you my advice I'll show you the systems that I do okay and

see we can see how that can Implement with what you do and if what I worked on to do I'll recommend some solutions for

you so that's my little plug on that by the way but but you know I recommend whatever

systems may work for you as a person whoever that is okay and kind of take it

from there because not everyone's meant for cold calling you might want to press okay you might wanna uh you know do the

PPC route and or or build the website and and bring leads do the SEO and

things like that so and I think a bunch of different models honestly I think all the all of it works yes don't let nobody

tell you cold calling or text messages or mailing don't work and every all of it works yes all of it works I've seen

so many people have success by just text messages and cold calling or mailers I

know all walks of life that that you these tactics in a marketing plan you know so all of it works you just gotta

you gotta keep being be consistent with all of it that's the biggest thing you gonna text a cold call

or whatever you're gonna do to be consistent with it don't just oh I did a hunting call ain't nothing to happen

calling tomorrow call another 100 another 100 another 100. you gotta just be so persistent with it you got to

knock down that wall like you got to be like at it like this all day long you got to put so much pressure on your goal

or your objective that it falls now you scared now you gunshot drive for

dollars work too I made a good money off of driving for dollars in Detroit you know

all of it works you just gotta be consistent by doing it and you gotta have faith man like I said I think my

face I think it's like I said you gotta have faith because you don't got no confidence in what you got going on people who sent that essentially ain't

no confidence that's why I practice so much before I got on the phone because I wanted to be as confident as possible

that I can get these things done I want to get on the phone with the seller and let them know Hey listen you

got the right guy for the job find it simple yeah and and this is one one thing that

I talked actually I was talking with Phil Blake yesterday and I brought him on you know we

recorded something by the way if you haven't seen that video I just posted it earlier this morning

so but we you know we're told like you you as a wholesaler if you're just

attached by or you're just going after cash buyers and that's it you're that's

that's a one-trick pony that's all it is you have to know most of and this is

where a mentor may come in and help you yes they say Hey you figure you got x y

z you know uh q-u-w like all these options

and let's figure it out all right now do I know have I done a sub 2 deal before

no do I know how it works and exists great I can explain it to the the seller

and we try to get a contract written up try to figure something out get under

contract and say I go to my buddy over here and who's done sub 2 deals hey dude I just got

this locked up yes yes I need help with this can you help me well 50 50 JB on

this absolutely so I want to give I want to give out not to stop you but I want to give another shout out to uh Brown

kunker he is um him and dingo like hand in hand like

100 like Okay so Brian it's like my God Dean and brought

both of my God they like Nick and Nick like helping me like Prosper because they they I really want to see me do

well yeah I love those guys for that Brian on the other hand I saw him a property

on calling calling probates and uh it was in Dearborn you know Brian's a flipper so

I called Brian I'm still fresh it's probably like me four or five months into it

I talked to Brian after we got the assignment agreement between

me and him son I talked to Brian for three four three four weeks in a row straight yeah because about not just

about real estate too about family you know things like that it wasn't always real estate but majority of it was real

estate but like I said I taught 10 football profile weeks every day oh yeah every

day he was on me Mike what's going on man when we chopping up we're just talking you know just having conversation because I got me I'm a

sponge I'm gonna ask questions like I got the Mastermind oh I'm gonna ask questions because they don't they on my mind I'm a sponge I love learning so

I want to give a big huge shout out to Brian man because he played a big role in my roof as well

and I nine o'clock in the morning at night hey bro man I I got this contract I don't know really what I'm what I'm

doing and he never he never tried to cut me out the deal take my my my assignment

fee none of that he was always straight up with me yep you're like all right my listen that's what I got it so

I can do this what I can't do you always honest with me you know I respect that from Brian so much man

but yeah that's that's what you got to do man you gotta you got to be able to be resourceful you gotta you gotta go to

network meetups you got to go meet these people because like if I wasn't The Mastermind I wouldn't got in contact

with you we wouldn't have it we wouldn't have this podcast going on you know but something we had a conversation and it

was genuine you know we sit there with chopping up on the couch we chopping up going back and forth with each other yeah you shepherding my blood I'm

Shuffling your blade and we just made this happen you know so things like that you got to get outside Joe you gotta get outside your comfort zone you got to be

able to talk to people yeah

one thing I love about you and what we are doing there is you weren't just bolstering me or

trying to figure this out you're you're trying to be like hey all right no problem what's

different than you what what do you have different than other people absolutely you know absolutely and I had to think

about that I'm like what is different than me for me from other people right right

honestly maybe nothing but I'm just telling my story yeah

the authenticity yes good you know yeah you've been genuine want to really help

people did people consist that you know I mean people people is a feeling process like people sense these things

you know one thing I do believe and I've been told this

and I've seen it maybe not with me I've seen it with me but I've seen it from

others as well if you are genuinely wanting to help people okay the money will follow absolutely

okay now does that mean you you put business completely out and just start

to help people hell no okay but if you go in to to say a seller call

with just wines to help them and talk with them okay

the deal will come out okay now I've been to many seller calls and where

they say well you know I really have to be here and I don't you know what I may

not be your buyer then but you know what let me connect you with a guy that I know he's a real

estate agent we can see what we can do and go from there absolutely

that's that's the key right there like honestly absolutely you got to get to

know people and that's where the networking comes in okay if I if I got somebody who's retail

guess what I can call Dean um I call my man Todd Sean he he knows

like 10 real estate agents right there that we can get a hold of that we trust

these are people we gotta trust okay because I don't want to recommend them

somebody that's just gonna flake on them at all that that ruins the reputation and reputation is man listen reputation

is hard to keep man what's crazy is I had my going into like my first few deals before I even had my first dude I

had a guy try to sneak me out of a deal yeah me looking all types of man I told myself I would never ever in my life do

somebody like that because he ruined my relationship with the seller he coming in there being unethical

you know and all right I'm gonna get on a phone conversation with him he got on fake he

got up here he got up in the Metro Detroit group and started bashing me oh don't do business with Michael Cooper

He's a bad guy I say wow you know like come on dude I just what

it was I held him to a standard you're not gonna do this to me bro you're not about to be out here trying to drag my name

through the mud and try and get down on my bills it's like just be ethical like you called me we had we had a

conversation about a house about a property just be a man of your word you know a lot of times

you know you will you will assume that people are ethical in this business and it's like it was a it was a real shock

to me like wow they really do this like that and I thought everybody was in this group wanted everybody to prosper and

things like that but don't always be the positive energy that you'll be looking to receive so you just like I said you

gotta have a positive mental attitude and maintain it and if you get sidetracked with

negativity man now you negative so you can't you can't have it on your burden yeah most definitely and that's the key

is is that when you come across people like that you know the thing is is that our okay

everybody's like okay should I blats him should I do this should I do that no you know why like just say okay nice doing

business with you great have a good day that's it and move on that's it okay now

your close friend comes to you and says hey I'm I'm jadine with XYZ I'd be like

dude look out for him run run yeah period all right

conversation between me and my friends my conversation over social media

no that's not it's not appropriate you know they he was older than me he was

probably like 40 something I'm like wow man I'm probably like 24 at the time like wow man like I would think

I would think you I would think you'd be more more more mature than I am you know I think you

want to see me win yeah the name means everything keep the

standard they can't stop you yeah that's my lady actually yeah yeah she's she big

she look she know I wish I was I wish she was here she could tell you some of these stories man I used to be like I

really like I had like I used to go through it a lot like trying to do trying to figure this out man like yep

so my darkest times because it's like I don't know everything and it's like the

unknown is scary sometimes you know and a lot of people jumped in and jump into entrepreneurship thinking oh it's gonna

be peaches and cream and it's not yeah

that really is the thing it's like you know what you have your hard times you have your good times you have your bad

times things like this this now this business is very time consuming people don't realize that all right so if you

have a significant other and they're feeling neglected or they're doing this just you have to have a conversation

with them and talk with them and say hey this this is taking up time but I'm

doing this for a future absolutely absolutely absolutely keep doing it all right but you've got

to have that conversation yep I I know this from experience hey me hey me and you both oh man

um but yeah I think the biggest thing though is just like I say you just gotta you gotta hold on you gotta get your

coach yeah you need a coach if you're watching this and you knew you make a mistakes get to a coach that's my next

step um

to meet this guy named Bill Allen yes okay I'm gonna tell you this Phil told

me this yesterday guys paying this guy 25 Grand just to be around him

okay 25 is nothing at all all right well

soon as soon decent the link I I cashed in exactly so I'll tell you on our

Facebook page Metro Detroit uh Metro Detroit off-market Real Estate Group I

have I have put it off to the sign off to the side all right there's the event there go there buy

your ticket in Eventbrite all right it's in White Lake buy your ticket I will be

there I'll be there at 5 30. Phil will be

there yeah that gives out a bunch of free content

listen my God Phil Phil's the truth feel the truth you know I have much respect

for Phil uh yeah it was the truth that's my guy I plan on doing some things with Phil

um and and in the coming months and that just me putting out there it's not in

the universe so all right yeah right and that's where you have to put it out there like guess what you said you at

Dean's event last event there where I saw you what'd you say I want to pick up a an apartment building

right that's that's that's that's this I'm getting you put that out there and and what we say oh we we five people

say hey yeah yeah yeah yeah absolutely absolutely and on top of that

they broke down the pre the whole process of starting from beginning to end getting getting pre-approved for for Lending and stuff like that like yeah

you can get like that's why coaches is so important because you can get yourself in a world full of trouble

just trying to do right yeah you wanna do you doing are you doing everything the right way in your mind but some

things you just need experts to help you through because you don't like I said you don't know everything you're like

you're you're fresh yes this is from Brian who is that right this is for Brian

that's my God great job oh my God

if you've missed it let uh um on the last episode we had Brian Anna

on with us awesome Rockstar it was him and his his

business partner Tai were awesome yes listen Todd has a house

amazing yeah amazing amazing um and they those guys those guys those

guys man every time I'm on I'm on Facebook and I see these guys posting their deals man it gives me all the

motivation in the world yeah and I want you I want you if y'all watching this continue to post your content because I'm watching y'all guys are inspiring me

man like y'all really I really look up to you guys so y'all continue to motivate me man motivate the platform

motivate the group you know because we Detroit man we coming that that's right we're always there

we're always coming man and if you if anybody needs help moving properties

whatever JV with me you can JV with with Mike by all means and you can learn from the

process now um one thing that I wanted to ask you going forward into the future you're

looking at investing now you're looking at you hey you're wholesaling you're not done wholesaling but

you're looking okay what's the next step what what can I do forward we already

discussed a little bit you're looking for apartments so so tell me what that next step looks like for you

commercial commercial units uh my whole goal is to get eight this this year if

it's more I'm blessed you know if it's if it's eight eight is the standard though only a unit I wanna

um self-managing myself so when I do scale I have a I have a I have enough knowledge to not get robbed or not have

mistakes I know exactly what I'm looking for I could pre-qualify my management team a lot better you know I know ins

and outs so I want to start with a unit hey real quick though make sure you add

in the property management costs

why you do that is because when you do that okay you essentially you still you pay

that towards yourself while you're doing that okay now now you're not you're not looking for yeah

you're not looking when you when you do that uh and then you say now you get up

to 100 units or 50 units or whatever um and now you're not doing it yourself

you're you're you're hiring somebody to do it you already have those numbers in place and now you don't have to take

away from the cash flow absolutely absolutely absolutely so like I said man commercial commercial

um that's my whole thing and I'll I'll never stop wholesaling yeah because you

know it just hope doesn't just give you so much flexibility and so many options you know but like I said long term

knowledge for me to start to take get my keep I've been finally got ideas for a while now so now my now it's time for me

to just start getting my own deals grow my portfolio grown as an investor

getting around smarter sharper investors that has more wisdom than I have man

because I don't have all the answers but if you got if you got the answers I'm coming to action so if you're watching

this if I see you I think you gotta I think you got some information that I can get and learn and you know take that

and run with it I'm definitely going to ask you I'm never gonna be gunshot about asking questions because like I say

my goal is to like I said improve every day man I don't I don't take this lightly so I have a problem

I've explained it I talked to Phil about this and I think Phil

you know he's a huge inspiration on this I want to

automate my Wholesale in business yep yep yep okay and where

um all I'm doing is concentrating on the training

okay and uh within the next five years now I believe I can do it within the

next two okay after talking with Bill yes I was giving myself some cushion

yeah yeah and that's what that's why I love Deans

Mastermind because it's a standard being said and there's also

some accountability being asked and I don't know and I love that because it's like a

challenges [Music]

you know so real quick Ryan has this question for you what has been the most

unexpected learning on your real estate real estate Journey most unexpected

learning not not partnering it up with uh with

Brian not partner Ryan seriously no seriously

what it was um me and Brian and Todd we had a we had a

situation where they wanted me to come on on board with them and do work together but in my mind I was like you

know I just want to build my own business yep you know and I don't know about that was just me being young or me

just being ego driven at the time yeah wait we're going back I definitely would have partnered with them guys and just

learn from them because they're they're rock stars themselves but learning just just really just

unexpected uh what else do you unexpected I had to learn um oh just paperwork

yeah like when I first got my first deal on the contract I didn't even send the paperwork to title

like I I said I was I was fresh all I knew was get the proper in the contract get my assignment agreement I'm like I

think I think one of my I think my buyer I think Harissa his name was Harissa was like did you send us the this is the title I'm like oh man

yeah I forgot that whole step again Dean

hooked me up with a guy named Aaron yeah I used to work at um Legacy uh

and he's he's still one of my one of my closest guys now I send him all my deals and a great guy and that was Dean just

being resource he was like Hey man reach out to Aaron he's a great guy and man and I have a great relationship

so the paperwork was the paperwork was one thing and then also dealing with people

because with single family people are very emotional yes yes very very

emotional when I had sometimes like I said I had to sometimes take my stuff back and okay let me put myself in the southern shoes

you know and that's why I've never been the forceful guy because I'll walk away from the deal before I force the deal maybe we just got to write the right fit

and I just walk away you know it was crazy it was crazy anytime that I pushed the deal away

eight out of 10 times to come back to me yep I had a seller last month she didn't want she thought

she thought that what I offered her was too high I told her okay perfect well we miss we might not be a good fit for each

other you know if you want to list it you can list it you know if any if you need my if you need my Assistance or

anything just give me a call you know and what happened was she said on it I think my me being

genuine you know and me being honest with her because I should shoot it straight I shoot people straight yep

from the hip I'm just gonna shoot you straight up forward um and she came back she accepted my

offer and we got to do close like 10 in like 10 days probably less than that yeah so um how did you how did you

already have a buyer lined up for that is that right nope nope the problem with the dude is the dude was just good it

was it was just that sweet like the property didn't really need too much work it was in a great neighborhood

when I put it up God called me hey hey I might Mike I want the deal I want to come look at it tomorrow yep you know

uh man I set it up you know now you just posting them on Facebook groups

do you have a buyer's list I have a box assistant I do post them all in in a group you know and I have a few guys I

have I have a list of I have a list of bars on my phone that I reach out to I just call them up individually hey how's

it going let's try that in Detroit are you buying a Metro Detroit area if you're not you know things like that you know I always just try to reach out to

my boss at least two three times a month too as well are you still purchasing because I gotta I had to erase a few

my buyers that wasn't buying no more yep you know I had to race them because they're not buying Detroit no more

they're buying they're they're in their other way so you know you just want to keep refreshing keep your buyers fresh

be honest um and constantly looking to improve man

that's the biggest thing get around people that can help you elevate you know you got to remove yourself and I think that's that's another goal for me

this year is remove myself away from people that can't teach me anything and it's not like

harmful I'm not trying to be harmful to nobody it's just like I'm in a space where

I have to continue I have to continue this momentum I had to continue to grow learn develop execute take actions be

held to a certain standard you know a lot of a lot of people may not hold me to a certain standard that a Dean or

Randy or Brian or hold me to it you know what I mean so just being around

um individuals that's that's already getting success um that's family man as fathers like

Brian and Dean them swell like I know I know all their families that's the crazy part about it I know the kids wives like

we really like I really have a genuine uh relationship with these guys so these are my guys so yeah that's awesome so

you know coming from that you know coming from you know dealing with you

know a great set of people um get out there to network events things like that

I you know that's I think that's the key that's what's helped me and my business uh and by like I go to as many

events as I can every month and everyone's like well oh wow you're always busy you're you're going in yeah

it's because you know what and some of these people I may see they're constantly the same thing but you know

what I'm fresh in their eyes you know fresh in their mind I've had I've had a

buyer money here I had one of my buyers bring me a deal saying hey you know I got this you know

I got this smoking deal from uh uh from an agent I just I didn't want it so I

gave them this huge lowball offer but they took it I got some of those too and and I'm like

hey if you think you could sell this I'm like I could sell this all day long I'm like you can make a quick you you make

quick money I make quick money yeah yeah so you know it's things like that that

you you just keep them fresh in your mind you know um you know that's

there there are some people out there some of my buyers they don't go to these events at all the reason they don't go

to these events because they're too busy working too busy flipping you know so

you know I meet him out elsewhere I meet him off you know for coffee or meet him at the property talk with them like that

you know you've got to keep up like you said keep up with your buyers you know absolutely

a hot list you know that I'm like hey what do you

think I gotta I got a property over here in Madison Heights you know what's what you got you

know tell me your Buy price on this absolutely absolutely and then too I

think I think that also you have to establish a trust a trust with your your partner well I tell you about the time

Hey listen we do business my relationship with choose is way more important than money yep

plain and simple oh yeah I'll let you know that now because

ain't no point to doing nothing Shady right you know in

their respect that listen my relationship with you is way more important than the deal or the next two deals because if our relationship strong

we're gonna we're gonna make way more money than this first two three Deals so this should be great be honest be

ethical and just go go be go attack go attack

you know be assertive in the field you know if you out there get out there and Coke get out there in cold cold get out

there and drive for dollars you know um and don't be don't be don't be have

faith don't be nervous oh they ain't gonna like that I ain't gonna like that because that was my thing my biggest thing

I was so I'm always been like kind of like laid back like in it like chilling like I just look at a lot of things come

to me you know I just relax if it's meant for me it'll come if it's not it

ain't but now this year is more I'm being more assertive with me posting me showing my face me doing this podcast

probably two years ago you probably want to call me on a podcast yeah uh but like be more assertive you know because

I do I do bring a lot of value you know um so just be more assertive uh

be more confident uh uh because I think that

your goal that you got for the pot with the automation you could do that in a year man yeah you're a rock star you

know you're a rock star dude I appreciate it the main reason I say it takes two years because I have a day job yes yes

so that's the main reason why yeah um if I was doing this full time I'm

but the thing is is that I 100 agree with you on that is that you you

got to have the right mindset for this you got to have the right um you know uh you gotta you know what

everything comes down to is your reason why and you're welcome yes you want to have

a good why yes so before you start anything before you do anything figure out your why okay yes you know and the

reason why you successed it succeeded so much in your first deal

is your reason why yes was that what three month old yeah at that time yes

he's just here now she's four oh my God man and like I say I took my daughter on my

first appointment one of my first few appointments and I knew right in the nerd I'm never gonna stop doing this this is

the exactly where I'm gonna take care of my child now I've done other things yep um but this is this real estate is going

to be a part of my legacy in my family forever and that's my goal I want to teach not only teach my uh my daughter

but my grandchildren my mother anybody I want to learn you know we're gonna We

definitely the Cooper's gonna be around we're gonna we're gonna be known for doing real estate man being great people and giving back to our community so what

is your head goal say 10 years down the road okay what what's your goals for 10 years

we can even do just do five years just fine um

I want to be I want to be this Freedom financially Freedom um my bills paid for I'm coaching

I have a non-profit called Motown Dream Team Academy where we train and Mentor the youth in Detroit and that's

like that's like my release okay being a mint chick is like

okay I grew without my father right yep so I feel like I became the person that

I needed the most you know a lot of these kids that I coach and train and Mentor they they come from a similar background that I

come from you know and we have some of the top athletes in the country now we

got a guy that's going to Michigan State Michigan LSU Oregon right but I want to be outlet for these guys

because everybody's not going to NFL we know that just the numbers it's a numbers game right but I I have an

Avenue for you you can always come learn real estate with Coach Coupe you can

always get the truth from coach cool you know that's that's my thing I want to be able to kitties young man uh Avenue man because

they want to be successful but sometimes they don't have the right information to take those proper steps to be successful

and about to be the Avenue that's what I'm doing 100 yeah but as far as like

I want to take it to take it up there so I'm thinking

a thousand units yeah then I want to start developing develop

a new land um uh things like that man uh I got big I got Big Dreams man I ain't

gonna lie I got big dreams and I know once up on that path God gonna bless me

I'm gonna show up and do the work my suggestion to you though with with

the development I don't know I don't know if I would go that route like I I've heard too many horror stories of

people going for Millions to broke because it took so much time

personally but yourself a mentor who's done it yes yes

and that's so I don't just I don't just don't want to do it like real estate is going to be only my bread and butter but

I have other businesses that are just go straight to my real estate everything is just for the long-term play

um but I want to develop new land in Africa countries on the continent maybe uh

South Sudan or somewhere like that I've I've done research about the population

growth and things like that um so yeah man I guess I have big dreams

I want my biggest thing I think I just want to help people I want to bring smile to people's faces I think I get

that's like the biggest currency for me Sarah Sarah's brandness yeah yeah yeah

hope you're taking notes yeah that's my that's my lady man she's

she's a big part of what I do man uh man I want to give a shout out to her right now uh because she's she's a rock star

too she's a rock star she's the one but like I say uh like I said my biggest my biggest

thing man my biggest currency is bringing bringing bringing peace and happy to people you know uh helping

people like like when I'm coaching I'm free I'm free I know ain't no ain't no worrying my mom so being able to

sense to myself up in my family financially to do more with these with the youth you know I wanna

wanna frat house for my kids tonight with Coach cool yep you know we get up we go look up some look at properties

you know I can teach them how to analyze properties I can teach them how to be on the phone you know I want to be able to equip as many people as I can you know

while God gives me the time to be here so that's my goal um great millionaires

yeah create some millionaires man you know really get back to these these anybody

that want to learn you know you could be purple you can be blue you can be brown you can be green it don't matter as long

as you want to work you're gonna show up and be committed oh Sky's The Limited 100 so that's kind of

where I would I would 100 agree with you on that because you know one of my goals

is obviously I want to do the wholesale and I want to automate that and I want to I want to be here to a point where I

can just be teaching the staff and stuff like that now there's a reason I want that goal and the reason I want that

goal is because yes I want to free up my time okay so that will run by itself I

can I can have that but now guess what else I can do I can teach other people

okay I can coach I can mentor you know other people and that's another reason

why I'm offering it for free for anybody who wants to um get on a call with me and and uh go

through anything uh real estate related I'm not saying I'm the best out here or I'm just telling my story and what I

know so you know I eventually will create a course

and you know and have a mentorship of my own that's big man that's big because

I'm pretty listen I don't think you understand how big your podcast is

this is because a lady told me John looks in the mirror and sees nothing

sometimes yeah sometimes we don't understand how big we are yeah you know so don't take that lightly man

Randy you're a rock star dude you know what I appreciate it the world noise listen everybody know you're a rock star

man you just got to bring it out to you you know and really just turn it up a little more no um

you know what another there another reason why I want a coach I want to do

all this is um because of this when how I grew up I

grew up lower middle class and I say that because I wasn't in the

hood or anything like that like I still had some things that a lot of people didn't

have so I I really appreciate that you know but I grew up in Ferndale on the

edge of Ferndale in Detroit so we coach we coach in the township so

you know the township right yeah yeah that's that's uh that's our that's our thumping ground yeah so I went

to Ferndale high school I went to California schools and I lived on like

if you know where the State Fairgrounds were okay um now there's a miners there there it

is it's where the Myers is now but yeah it

was where the old State Fair used to be so in South Boston and in me all right

but I grew up five blocks north of that and that was all like

I that was all my playground because my parents work constantly you know

my mom and dad have been divorced ever since I was a kid but I had this special case where my dad was

always in my life and my mom and my dad were always

supportive of whatever gas dreams I had or they were supportive of me but they

said you gotta figure it out though on your own absolutely we cannot like my my

family said we're only required to give you three Square meals a day put a roof over your head and put clothes on your

back they don't have to be the best clothes that doesn't have to be the best food and it doesn't have to be the

password so that's it everything is yeah

that's big man that's big and I think your parents did a great job because

figuring out that's what I tell my daughter all the time she's like Daddy Daddy figure it out you broke it figure

it out yep you figure it out because if I continue to figure things out for

you you're not gonna want all the freaking things out once you get older so I'll figure it out my head is full yep I ain't I I'm blind and deaf

right now fix it try to figure it out you know and I challenge my daughter every day figure it out make that bed

clean put your put your dress down do this do this do this she always figured things out you know and

that's the minds that you gotta have you gotta have that yeah no matter how hard it get no matter how tired I get you got

to figure it out man because if you don't you only you're going to blame yourself you can't blame nobody else exactly

it'll be it'll be a fool you to be pointing people over I ain't here because of this or I'm here because of this man you figure it out you know I

grew I grew up I don't know I don't know if you know where I was at uh in the gardens yeah yeah rough place in the

early 90s man late 90s rough

I got two degrees I'm doing this I'm

coaching you know I'm healthy I don't make excuses man you know

um yeah I think that's that's that's I think that's like the my X Factor is the figuring out part

I'm gonna keep going I'm gonna keep trying to keep trying until I figure it out because 200 years ago when no airplanes in the

sky yep yeah you feel me like it's 100 200 people go in the air right now if if

you can figure out how to put a play in the air to carry 200 people I can figure out how to do real estate plain and simple that that that me

figuring out how to do real estate and him trying to put planes in air two different things so if you can figure

that out I can figure out how to do real estate man so that's just what I hold my whole thing if you can do it I can do it if it's been done I can do it too it's

kind of simple and I know there there's this feeling out there that people think that like oh my God there's so many

people doing it I can't get into it right now you know I understand that feeling because I felt

that before but guess what there's a lot of people doing it but there's a lot of people doing it wrong and you gotta be

able to do it right yeah do it ethically okay if you come as a being a genuine

person and you're trying to solve your problem it's going to work okay now are you

going to make millions right off the bat hell no okay but guess what you got to

keep at it you gotta just chip it away um you know and you can kind of go from

there so you know you gotta have grit yeah kind of simple you ain't got no good this ain't for you because that's a

for you right wife amen for you because at some point in time life will challenge you expose you

all types of stuff if you ain't got no Grit if you don't have no faith you out of it

right I mean like you gotta have grit and that's one thing I learned in college like you gotta have grit you gotta grid up and just figure it out man

it may hurt it may be painful it may be it may last a week it may last a month but if you constantly stay at it you'll

get over it and you will figure it out man you know that's always been my I think that with me growing up with my

without my father and then my mother having me at 16. I was kind of like she grew we grew up together so it was kind

of like I gotta figure it out cause I gotta take care of my mom my mama taking me she's 16. I gotta figure it out no

matter what I do no matter how I do it and that's always been my like I always tell my mother and my aunties I'm gonna

take care of y'all yep I'm gonna take care of you that's always been my promise to them

um and when I got when I wrote my foot playing football and I'm getting blood clots in my lungs I was devastated bro I

was so heartbroken because I feel like I told them a lot I couldn't

I couldn't perform and do what I love no more but it's like okay Mama and that

day that night I wasn't I was in I was in my Hospital been my my mindset switch I'm like

I gotta do something else now what I'm gonna do about it I thought I asked myself the right questions I

think that's I think if people start analyzing their life when you start asking yourself the right questions you

start finding the right answers to take steps forward but if you're not asking yourself the right questions you can

always be stuck like I told you when I when they told me I might not play football again okay

how do I get rich about without without me playing a sport what can I do I now first thing I typed in my phone I

remember I had it was uh it was like a little little Metro I'm like how do millionaires get rich man real estate

popped up and right in there I'm like real estate it is 100

um one thing that like attributes to what I've done and how I re how I am

100 is everybody says oh yeah you know like having a father figure in their

life and this and that I 100 contribute who I am who my father was absolutely

okay and the reason for that is because my my father was the most patient

and the most kind person on this Earth and you know how I know that he's the

only one that could do with my mother hahaha

yeah I mean I never wrong with the truth man and they're like nobody's perfect right

you know I mean nobody's perfect but so I've learned patience from my father for sure okay I've learned how to go after

things from him now there are some things that he's done that I believe has held him back and things like that but I

believe I learned from that not to do those things you know and

one thing that my both my parents always did is they always believed in me absolutely if I had an idea

to do something okay I wanted to go to college I they're like okay

all right well walk us through it is it something you really want to do why why do you want to do this okay how are you

going to pay for it what's gonna happen you know what's your career choice what you're going forward they're not sitting

here saying no you can't do it that's it that's a that's a uh unrealistic goal come on you gotta

find something that's gonna pay you something real you know this and that you know when I got out of high school

I sold I took a job selling Kirby Vacuums oh don't they

expensive was right yeah okay I didn't make it at that I'm gonna

be honest with you but I went through the training I went through all that and it just wasn't for me at that time in my

life but I took what I did there and I learned from it and I learned what's

working for me what's not working for me okay and I'm like okay now I gotta

figure out something else now I gotta figure out something else I did I did this I gotta figure out I made it to

my I'm I think real estate is actually my fourth career

my day job is my third one hey Randy listen man I don't know if

anybody on this podcast in the world have tried to try more things than me I've tried Drop Shipping Lawn Service

I've tried that yeah listen look matter of fact let me tell you a quick story

my Monte Carlo that I had right I had a whole lot of you know Monte Carlo is only two doors yep right yep

this is how crazy like my confidence always been like like my confidence always been hot I've been a confident

person right so I'm doing bandit signs I'm standing East last at the time so I'm doing better times put them all around the city

I'm getting minimal traction and whatnot so what I did was I put a um a Craigslist ad on Craigslist

right yep professional photo from like a guy with a with a zero turn

a line Jack and all that right the next morning I'm my phone is blowing

up blowing up and I'm going to do these I'm going to

cut these like my my Lobster my landscape excuses top tiered Edge y'all

be in the bagging so my soul but like I say they I show up in the Monte Carlo pulling my lawnmower my weed

working with the gas all out this two-door car you ain't too not making no excuses you

know what I mean and my work and I kept those clients I never stopped with those clients probably like maybe two three

years ago or not but like I tried so many other things man Drop Shipping

I did a lawn service um I did really this is my my second

time like I didn't realistic I did the whole I tried the whole ceiling thing and in Lansing I stopped doing that

dinner there um pallets oh my God man listen like

whatever dude whatever like like I said like my whole asset my whole monster is always figured out no matter what I had

to do I'm gonna figure it out we're going to try to look amazing all my resources all my options before I say I

quit what's funny is that my dream as a kid

okay keep this in mind my dream I'm a 15 year old kid um probably more of like a 12 year old

kid right you know what my dream is my own business yes you know why is because

people with their own business gets to go anywhere and that was that was the reason why I

wanted that now so what did I start doing I went out I mowed lines I I

shoveled snow I did everything I could I did my own business everything I did I

it was all because of what I wanted to do you know I I was an entrepreneur ever

since then now I've had businesses fail I used to be a photographer and you know

I've had photography business sale I I failed that I went there it's all about

marketing every stage of the process what I've done I've had to learn going up and up

until now and I think it's all prepared me to what I'm doing now absolutely and

I think that me doing so many other different things I learned that marketing is King yes

I had to learn that marketing is King if you're watching this marketing is King if you know I'm marketing you have a better product than me if my marketing

better than yours I'm gonna outperform you every time yeah plain and simple

when I learned I'm like I had to learn that though I had to learn that about going through so many

different things like the lead generation got to be right because if your friend is not right your back it'll never be right

so we're coming up to the end here and let's figure this out like so first off

there's two things I want to want to go after is one what are your lost thoughts

for anybody out there who are is either just starting or

who's thinking about starting whether it be wholesaling investing or anything like that

surround yourself people surround someone like-minded individuals surrounds yourself with people that has more than you that you can learn

from you got to find people that's going to sharpen your iron up man you can't be around a bunch of Scrubs

and I don't mean to say scrubs in like in a bad way but like if I'm playing basketball I want I want to play against

the best if I'm playing football I won't pick it's the best I don't want to play against guys that I that I know I'm

gonna outperform I won't play I guess guys that's going to challenge me that's going to bring out different skills and

a different part of me that I didn't know I had so I wanna I Wanna Get Around the best group of guys I can get around

so that would be one and two will be um

educate yourself yeah because when you get around these group of individuals if

you don't know enough they don't they know you if you're not if you're serious or not yeah so educate

yourself education mentorship and then educate yourself you know you gotta You Gotta Get You Gotta Get Around the information you got

to be fully engaged into your craft 100 now for the last thing is how can

people help you and how can they get a hold of you in order to do so

so you can get a hold of me um if you're ready uh my cell phone number is

734-686-2860 again that is 734-686-2860 if you guys contact me

about any deals that I have um you can email me or text me or text me your information I can put you on my

boxes if you're looking to buy properties um if you look at the JV or anything involver real estate just give me a call

man if I'm if I'm available shoot me a text I'll be with you five minutes here 10 minutes here

and then as far as what I'm looking for like I say this Mentor should do

to elevate you know because like I say like a team in La I want to bring people up with me I want to I want to

find Hungry guys like myself women like myself that want to really work and and killing in this industry like

mentorship mentorship mentorship excuse me just real quick make sure

you're at the event on Wednesday yes please surround yourself with great

people yes go from there I'm gonna be there um I'll be there yeah there's also

Renegades it's tomorrow night as well in Southfield and shields that's yes yes

we should have put that down in a subscription man that's big because yeah that Mastermind will be explosive will

be informational it will be wonderful to be in it's a lot of High Caliber guys that's going to be in the building and I

can't wait man I'm so happy I'm so happy Dean is bringing that to bringing this opportunity tricks for us man shout out

to me man I'm so happy as well like I really

you know really happy about that that he's able to actually bring them yeah

yeah so what I'm doing here is I'm posting a link it's a Facebook link to

the Facebook event and you can click on there from there I posted it in the

[Music] in in the YouTube chat as well as I'm posting it in the

Facebook chat so if you haven't got your tickets click on those links below and

go from there get get your tickets so now uh with that being said you know

honestly this was a great talk I'm really happy to have you on here Mike make sure you send me those deals I

got you I got you man I got you all right so they're coming they're coming so like I said man I want to

commend you man I want to thank you too man I really do for even giving me the opportunity to be in your platform man

that's great that's awesome like I said I want to graduate you again thank you and I'm gonna challenge you

my guy and I gotta challenge you of course let's get this gold on man let's go ahead and get you get you get you

rolling get this all get this get this whole thing automated man because I I know you can do it you deserve it

and I'm here I'm here to see it let's get it I appreciate

I appreciate Mike Mike stay down here I'm gonna bring you down uh stay here I'll talk to you a little bit for a

minute and everyone everyone here um happy to have you thank you for

joining if you stay till the end make sure you hit those Links at the bottom and go from here thank you have a good

day let's all do deals together

Real Estate Talk w/ Randy Stedwell Episode #6 | 1701 Homes W/ Bryan Kunka & Todd Albery →

On Episode 6 we will be talk with 1701 Homes which Includes Bryan Kunka & Todd Albery about their Real Estate business. There Long term rentals as well as short term rentals. How they buy and what they are doing in this market to make sure they are making a great buy.

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

All right we are live how's everybody doing today hopefully we are all having

a nice good Monday um I have a great great

um couple of people on here and so it's just getting set up and they are from

1701 homes and it is Todd and Todd

Albery and Brian I and I'm probably a butcher that last

name sorry about that um so we are here this is uh real estate

talk with Randy Stedwell as you can see uh we go here a lot well now it's every

other Monday uh at 8pm we're staying consistent we're being out there and

we're gonna bring uh new people on every single podcast to interview talking

about real estate uh we brought on lenders we brought on uh you know

wholesalers we brought on fixing flippers we brought in anything to do with real estate we're talking earlier

all about real estate here in the chat go ahead leave your comments

uh if you have any questions ask them we will answer them Live while we're here I

will integrate into what we're talking about so try to keep it to what we're talking about and uh without further Ado

I'm going to bring up Todd and Brian how you guys doing today

doing well I like uh I like Brian Kuka I'm gonna uh

I'm gonna use that he uh he made an age joke the last time we were talking about

uh I'm gonna I'm gonna I'm gonna use that Kuka in all kinds of ways I am

sorry no thanks Randy that was great how do you say your last name

um so with that being said so what we'll do is um kind of give you guys a brief you

know beforehand we start off with beginning middle and kind of like beginning where you're at now then where

you're at now and what you plan on doing the future now at any point in time here

please let us know our audience how we can help you as well so so we can kind

of go along that Journey with you um so with that being said why don't you

you know so your guys's company name is 1701 homes okay and I know there's a

special meaning to that but uh why don't we go into first off how you guys met what made you

decide to go into real estate and then what made you go into real estate together

I have known this uh kunka character for gosh probably over uh over a decade or

so and uh he and I both kind of had the privilege to to lead Dan Gilbert

companies Brian was part of the uh bisnamu which is a kind of a university that Dan created for entrepreneurs very

very cool and uh Brian was leading the company there and I was I was able to lead a

company called quizzle uh with inside the Quicken Loans family of companies for a while so

uh Brian did uh I almost called it picket fence right

pick it report and and uh he he and he

did that for a while and then came over uh to join us for quizzle ran the biz Dev team within quizzle for a long time

and we were we were on a similar track with Credit Karma and we we gave out free credit reports and then used that

data to help people make financial decisions a lot of those decisions were revolving around some of the products

within Quicken Loans and Beyond so that was fun did that for a little over a decade Brian was a huge part of that

uh we sold in 2015 to a company called bankrate.com who then a couple years later sold the

Red Ventures and uh Brian was kind of sneaking away near the end and he kind of left first

and uh started doing some real estate which I plugged into uh from an

investment standpoint at first and then uh he was having way too much fun so I

decided to come join and buying and fixing up houses and flipping and all that good stuff okay so the narrative is

always it's always nicer how you like couch it when I when I snuck away I snuck away because I was let go uh from

bank right now so okay well hey hang on though in all

fairness to Brian they were moving everybody out to New York and uh in

North Carolina which I think Sarah was almost ready to go to North Carolina by the way so uh and and by the way as as

Brian was sneaking out they were coming looking for some incredible stuff that he had built along the way to borrow and

take for the new companies so uh okay don't let him sell himself short

the way I see it is is even if they let you go it's still they they may have closed that door but it opened up a

brand new one for you no time myself we've we've just always

been super entrepreneurial with with everything that we've done we've always kind of approached business uh and we

just try to have a lot of fun and we just love building things so part of the reason why he and I get along so well is

you know we definitely have um we view the world very similarly uh we

we learned we spent over a decade inside of Quicken Loans and you learn a lot about

um culture uh inside of Quicken Loans like they you know for

you know good bad or ugly inside of Quicken um or rocket mortgage now

um you know like a lot of people kind of say the same thing like oh you know they they work you hard there well you know

they tell you they're going to work you hard and then everybody's just kind of like surprised by this like oh my gosh I want you to work nights I want you to

work weekends but one of the things that Dan Gilbert did an amazing job of uh and

kind of the leadership is they had you know this you know thing called isms which is basically company philosophies

and they're brilliant you know they're they're fantastic uh and they spend so

much time effort and energy and Company culture and with Todd and myself spending 10 years inside of Quicken

Loans or rocket um and really like seeing what it means to really walk the talk uh for company

culture I think that's where he and I like became very quickly aligned like we we naturally we're both naturally big

thinkers um and when you take a a combination of

like hey we we both have a love of like real estate technology you know mortgage credit that type of stuff everything

kind of surrounding the house uh we think big and we say share the same like

cultural uh values um you know that's a good recipe and so

so how did you guys keep from most people have when they partner up they

have issues um okay works you got the honeymoon phase okay and uh I like to say that

because it's like a it's a basically a partnership is a marriage you know

um and so you got that honeymoon phase where you both work and you're both cranking it out but then every now and

then you you come across where one's not doing as much or one feels like it

they're they're they're picking up basically doing everything and the other ones concentrating on other things and

things like that how did you guys is I don't want to say avoid that because I

don't know if you had that issue um but I guess avoid that or or resolve

that if it did have that issue it's awkward right now Randy because we totally have that issue

and we really haven't talked about it and I've just been carrying Brian no I'm

just kidding if any if anything it's probably the reverse Brian's been absolutely

phenomenal you know no I'll I'll say we we've known each other you know for so

long I think we knew pretty well what we were getting into we knew each other's shortcomings and strengths and all that

kind of stuff and it's funny some of our some of our shortcomings are similar and

a lot of our strengths are similar too we're actually probably too similar to be in business together we we probably

don't do enough yin and yang um and we're both kind of Visionaries and

stuff like that and and but uh but at the same time we've done I think a really good job

we've got an amazing team and so we found people that kind of fill those gaps and who are absolutely amazing

and and fill some of our shortcomings and we're both pretty aware of of you know where where we're decent and where

we're not and we're pretty honest with each other you know Brian said we like to have fun I mean we we in this

business if you can't you know if you don't like challenges and you don't like to laugh and and and at the

Ridiculousness of every single day uh you're not gonna last long in this business so we we think it's pretty

funny we have a good time as a team uh you know even when we're in the thick of it and your houses are going sideways uh

we're still able to laugh and and have a good time and figure things out I mean you got a bunch of as long as you've got

a bunch of people that are dead set on figuring it out whatever happens and not focusing on the negative but just you

know hey okay now we know you know let's go and let's fix it that's kind of fun if you you know we both been Sports guys

and been on teams so that's kind of what you do on a team you know you get some adversity and you band together and

that's usually the team that wins so we've been really fortunate to find great people so in the beginning did you

guys hash out and say hey I'm gonna do this part you're gonna do this and kind

of like okay I'm gonna be how should I say the the coach of this side of the

business of handling this you're going to be the coach of this and you know

kind of advise each other and you know give advice or did you just kind of like Let It Flow

yeah I don't think we did that Todd I think uh you know the the one of the things that that we kind of talk about

um early and often is handcrafting the business and handcrafting the business is really like you know when you're when

you're doing something new when you're doing the flipping business like you need to touch it you need to feel it you need to get involved with it

um you need to do certain things to understand like yeah you know like sometimes you clean a filthy house to

understand what you're actually asking of your cleaners sometimes you know like you you just do a bunch of this stuff to

like really like understand what you're up against and as Todd and I like

started this business um had a third partner and you know the third partner had the background in the

flipping and the in the real estate side so Todd and I were just here

um you know from the scalability side like how do we scale how do we build process and procedure and that type of

stuff so we start started learning that way and we both kind of jumped in um where needed

um third partner was not a partner person um so at the end of the day he was kind of more of a lone wolf

after you know less than a year we decided to kind of separate and we kept

moving and at that point that's when we started kind of dividing and

conquering a little bit more um Todd kind of handled like more of the

CFO type role uh I kind of do more of the project like you know like

construction type stuff and finding some houses and and over coordination

we had we had a project manager that was not the right fit

um you know wasn't you know we look for servant leaders and yeah and it just

wasn't you know was it wasn't the right fit for one reason or another so um

so when that happened it started like the need of the business started becoming more and more clear and he was

kind of handling some of the money stuff um so he kind of went deeper there uh

and you know I'm super grateful he did because the money stuff is neither of

our like passions uh yeah but when you're talking about the flipping

business I mean it's it's a third of the business I mean the way you break down if you've got houses you got money you

got Crews like yeah a third or third or third like you need to spend all of your

time you know equally on those on those things and if you are off on one of them then it just kind of really throws stuff

off so um so yeah so over the course of time when there was a need like cops in and

you know he's still he's still handling that stuff focusing on that to this day

um you know probably much to his Chagrin but he's done a fantastic job jumping in and and kind of doing that but now as

we've as we've kind of grown the business we have a flipping business a wholesale business a short-term rental

and a long-term rental business now what's happened is he and I have kind of divided and conquered in that way and

he's focused more on um short-term rental and wholesale and I've kind of focused on our long-term

rental with Detroit and are flipping but flipping is still the main

you know it's the dog everything else is kind of the tail right now so we all come together for the flipping business

as well so so over time it's become a lot more clear on how so what did you start off

what'd you guys start off doing obviously you didn't say all right we're gonna do all three and hit at it so how

did you break into it did you break into it with the wholesaling the flipping um like how did you like what was your

guys's I want to say what was your guys's first deal like I don't know if you remember back then

because I'm sure it was a long time ago so it was only five years ago we we bought

it from a wholesaler bought it from Ron wall Raven house in Southfield

um and first deal was I don't know just kind of small house uh kind of kind of

no big deal uh at that time you know Todd and I were not like we were kind of hands on from the

standpoint of like I don't know how would you describe that Todd at that point like we weren't like

we were we were kind of working with our third partner and he was doing a lot of

this and he was cranking it out and so it was kind of a learning experience like hey what's going on and

he wanted to take it to another level and uh he didn't have any processes in place

so it was just every day was total chaos and and frankly he worked pretty well

frankly he worked pretty well uh in in in the chaotic mode like he would just he was just getting things done you know

um but he was looking for more efficiency and how do we grow this how do we scale it how do we have more crews

you know more trusted Crews you know do we need handyman you know what does this business really look like at at a higher

volume and we pretty quickly did like 33 houses together uh so we you know we put

some real scaling techniques in place and we probably in hindsight moved

too fast you know on that but you get a heck of an education it's baptism by

fire and no one house is going to kill you you know if you're doing a bunch and and

you're getting a lot what kind of data guys Brian and nice we like to you know if you do one not saying it's

not the right thing to do and for some people it certainly is but if you do one or two houses only a year

you better hope that those are good houses and they hit um yeah you know if you're doing 20 22

ounces a year you've got some leeway today hopefully a few of them are decent and you can try some things you know

we've been able to do all kinds of different things and try some different things and go outside of where a realtor

might say hey everything white and beige and let's just be careful on that you know and we happen to have we've gotten

to a place with our team now where we've got designers who just do some absolutely incredible things who would probably

have been long gone like two or three years ago if we will say it everything's white and beige you know they're doing

feature walls and black doors and all kinds of different bronze stuff it's really cool and we've benefited from it

too so if that was yeah one or two houses we probably would have never tried that stuff um and in hindsight it helps when you

have a an unbelievably talented construction leader which you know

Nicole is and designer um so that part helps immeasurably but but still you know she was able to try

new things and get some things right and get some things wrong she she actually got more thing way more things right

than wrong to the point where we were like hey feel free feel free to get some things wrong sometimes you know let's push

envelopes which which she did she really kind of pulled Brian and I out of our comfort zone uh but that's the benefit

you get of going kind of big and getting to try different things for sure so

that that first it was I'm assuming it was a Fix and Flip your first deal that you guys did

and was there did you I mean I'm assuming

you guys made money on it and and learned a lot of lessons from that

um now it was it a lot less did you I mean how many lessons did you learn on

that on that first deal I think we've made money on our third deal but the third deal finished before

the first deal and I and I might have a little bit sideways but like the third deal was amazing the third house we

bought but the first house was first house uh selfie you're talking Melrose right

bro yep yeah so that I would say that was not a good house if we had just bought that

house done that house we'd been probably folding up the business you know about six months okay so so did you lose money

on it or did you just straight by break even what was it

it's kind of crazy it's almost embarrassing to say we don't really know I think there was a pretty darn close to break even wouldn't it bro okay yeah

like a couple thousand dollars the other day yeah so so the way I see it is and

this is what I'm trying to tell new people coming in as well is is you said you you made a tremendous

deal on your third deal okay your first deal you basically I I'll call it break

even okay um making a thousand dollars as a fix and flipper is not that bad not too good

you know we we definitely lost money on our first deal like we don't have to we don't we don't have to sugarcoat it I

think a lot of people sugarcoat this business yeah and say like yeah you know we probably broke even I mean we've

we've lost a bunch of money on a bunch of houses and part of the reason why we've we've done that we've done that

very specifically yeah and I mean we don't want to lose money don't don't care but but what happens is you know

we're trying a bunch of things and we're Gathering data like one of the one of the reasons why we did 42 houses the

very first year that we got into this business is we know that we needed data

and if you don't have data like Todd said you do one house you just you don't know if you were good were you lucky or

were you unlucky so we're like okay kind of the big thinker side of awesome okay

we really need to understand this business and coming from quizzle where we had millions of people uh inside of

the software you get a lot of data and just like really understand so we said okay we're gonna we're gonna attempt to

tackle this with a lot of data and the only way you can do that is buy a lot of houses the only way you can do that is take a lot of chances so you take

chances and they don't always work out and that's perfectly fine that's a thousand percent a philosophy of ours is

that hey you know what we are going to we're going to keep trying uh you're gonna fail forward like if you take on a

project and you lose money like you better you better win from like learning why did that one not work you know so

you do your postmortem understand why didn't that project work did I buy it too high did our cost overruns go too

high like what was the what was the scenario there for that to you know kind of go the direction that it did uh but I

think what you'll find in this business is there's just a lot of people that have a lot of like bravado like oh I've

never lost any money uh and the reality is if you haven't lost like if you're doing you know a couple houses a year

that that's perfectly fine but if you're doing it at scale every like flipper that I know that's doing flipping at

scale you're going to lose money you're going to come across a buzz saw you're going to come across a problem house uh

and realistically if you're not trying you're leaving a lot of money on the table by not losing money which sounds

crazy but there's so many houses that we buy that you would otherwise be like you

know what you're not gonna you know it might be a little too tight um but over these last four or five

years we've been able to buy a lot of houses that were tighter uh and you lose money on maybe one or two of the tight

houses uh and you figure out how to how to eke out more money than you are

anticipating so so and anyhow sorry to sorry to jump on top yeah that's all

right there's just so many people like there's nobody in this space that's just like hey like let me tell you about all

the problems let me tell you like perfect every day like we've never had one thing go wrong yeah and you know

what's today today's Monday I've had 15 things along today and and that's the key that I'm trying

to bring to everybody is that you know what you need to take action and you learn from action okay so you learn from

your mistakes if you haven't made mistakes you haven't learned anything and this is what I tell people all the

time I not only learn from my my own mistakes but by talking to you guys I'll

learn from your mistakes too so by by bringing in asking you guys questions

hey and it and if you're not that type of person to go out there and put your

put your business out there uh you know you're gonna make more mistakes because

you have to be out there to you have to learn from other people's like hey I I

got in this situation and and then you got to be able to take risks you you know you're not a flipper if you're not

going to take any risk you know there's always risk in in this business no matter what so

that's a great point and Brian is a master um every once in a while joke when she's

seeing one of his Facebook lives or something to be like oh my God are you okay with him saying that you're

what if your investors hear that and I'm like totally like it's more than okay it's the reality of the situation yeah

everybody knows it everybody knows it's not perfect but um you know what I think and you just you just kind of mentioned

it but I think you do yourself a disservice when you're not honest at all because then nobody you know if you're

kind of like hey everything's great with me you know we're doing we're killing it how are you doing like the other person's gonna be

like oh yeah I'm killing it too instead you know Brian's really good at sharing some of the the the the tougher stories

or the things that are going wrong and next thing you know that person's opening up they're going oh yeah I had this happen and pretty soon you're

talking about how to fix that stuff you talk about real issues not like the Facebook yeah everything's perfect and

here's my beautiful family picture you know all the time it's kind of like

you know it's just kind of a moment of honesty when you when you open up other people tend to open up too kind of like

you're saying so yeah most definitely and when when you put yourself out there

to people there's only a handful of people out there that will try to bring you down and the only reason they're

trying to bring you down is because they're down so um you want to ignore those people and

just stick with the people who wants to help you and who or just share their story with you and now you can learn

from their story so and that's another reason why I wanted to do this podcast

out and put every put all this out there so people can learn I don't pretend to

be a guru I'm in wholesaling that's what I know I'm not a flipper I've never done a flip out I've never flipped a house

myself I will one day um but I I don't pretend to know that so

that's why I bring people like you guys on um or lenders or anything like that and ask you the questions and selfishly I'll

use you guys in the future so you know um now I do have a couple questions here

from the audience and so we'll go from the the Facebook one is from uh David

call Junior um it's from the Facebook group so that's why you don't see the name on

here but I had it pulled up on the side so uh he said uh hi Todd and Brian I am

it can't always work out uh have you ever I had to let anyone uh and

basically let anyone go um you know have it work out for both parties

um and have you uh happy to have you shift get right

shifting on the fly so let me let me jump on it so we know Dave really well

thanks

okay go ahead right we know we know Dave we know Dave super well he's awesome yeah so so we were working we were

working with Dave uh probably last year and he he's just kind of kind of joking around saying hey did it ever not work

out for both parties uh we we were working with him and and uh you know at

the end of the day like we did go our separate ways uh but we love Dave Dave's

awesome he's got a beautiful daughter he's a good dude he's learning learning this wholesale business he's working

with uh Todd Chun uh right now helping him out uh I don't know what to to what extent he's he's working with him but

Dave is one of these guys um Let me let me tell you a little story about him

um and so Dave is one of these guys that uh he was a wholesaler throughout an

opportunity um for a house in Harper Woods I met him out there he had a partner at the time

uh and went out there talked with him and man Dave and I had a great

conversation we we're only at the house for I don't know maybe 30 minutes or so and then afterwards

um you know I was talking with him we had told him what our price would be which was less than what he had on our

contract for he renegotiated it uh and then he and I had a fantastic conversation talked with him probably

for an hour uh you know about life's challenges and ups and downs and and

he's been through some adversity and and man he is one of these guys that was just so inspiring to be able to like

fight through and battle through the adversity that he's kind of faced in in uh in his life and uh it's like hey you

know what like I want to be around good people and at the end of the day like you know he he's doing his thing he's

learning I feel like we go down parallel paths in this business like sometimes we work together and we're together uh and

other times you know we work near each other so Dave and I like you know we

like he'll still send me opportunities and and uh from that we we had a house

in Harper Woods that that Dave brought to us and from that meeting we we uh he

introduced us to one of our main Crews uh that has been fantastic you know so

we've worked with John and Tony for the last couple of years now uh

just from you know going to look at wholesale houses and having conversations like we're able to work

with him for a while we were able to you know buy a house we're able to find a new crew so it's conversation so he's

he's over here joking around on on the side here but it's just most definitely like Dave's a really

really good guy and and real quick on that I mean we talked about the fact that we try things

right we try a lot of different things yeah so we were you know we were trying to do some outbound and stuff on stuff which is really hard Dave did a

phenomenal job with it he's incredible at talking to people it we were we just weren't ready for it as a business we

weren't we just kind of realized we weren't ready we didn't have we didn't really even have the resources and

people around Dave to make it work to to do outbound you know we thought hey this is this is an opportunity we're going to

give it a try and uh and we didn't Dave was great and our company just kind of wasn't ready for it but that's you know

those are things we do we try things yeah and we bring on great people so most definitely and you know that that's

a good thing like like I said I met Dave a couple times you know and uh he is

working with Todd um on that and but yeah he's a great guy

awesome person to be around so if you ever get a chance to to meet him in person at the meetups by all means have

a good conversation with them I learned from them so I so I got the

I get a question so Jeff G from YouTube is asking how far behind are you

guys on your bills and I think what he means is just like I'm not 30 or anything like that

you know do you guys have that type of thing set up I don't really I'm not

gonna lie the second I saw that question I immediately texted Nicole who is Jeff G do we owe him money right now

yeah so so that's we we don't know I mean the the

uh we can answer that that question I will talk about you know right right now like it's a really good you know really

good time like the market changed last year okay so so our business has been

humming along and then come July August of last year things the market changed dramatically we anticipated that

interest rates were going to go up we didn't anticipate that they were going to go up basically overnight um that's never happened before uh in

the history of rates like that um so if you take a look I was listening to

um the chief Economist of Nar and he was sitting there talking National Association of Realtors and he was talking about how like it's just been

unprecedented for rates to jump that fast so we were anticipating that uh and

we we've been kind of sitting there waiting for the market to change and once the market was going to change we

were going to hop deeper into long-term rentals and short-term rentals became a thing but one of the things that

happened is um you know we probably purchased 4 40 houses last year in the first six months

in the last six months we maybe only purchased five and it's caused cash flow issues even

going into this you know the beginning portion of this year um still haven't bought a ton of houses

and the way that our investment work is is when we purchase a house we get 100

of the purchase price we get 100 of the rehab uh so if we buy a house for a hundred we need fifty thousand to fix it

and it's worth 200. um we get a loan for 150 at closing and 50 000 comes into our

pocket um when we're not buying houses then we don't have cash coming in kind

of at the same speed as what it used to and then when we're selling houses they're taking you know two months

longer than they were our entire you know existence so recently over the last

few months um we've had you know cash coming in has slowed down dramatically and Todd has

been amazing at threading these needles talking to everybody like it's a true lesson in leadership on how to handle

like like difficult times like it's not always like rainbows and unicorns in this business

and what you'll find most of the time is that most people when uh things are

going poorly or badly they just they just like shut up they don't say anything they hide they're embarrassed

of it they don't talk about it uh and one of the things that you know Todd and I from day one uh we've talked to each

other about you know the real problems you know the The Good the Bad and the Ugly of this business and you

when you do that when you have real conversations and honest conversations um and then you share that with the team

and you share that with your contractors then everybody understands but if you don't say anything if you go dark on on

somebody like most people tend to do when they don't know what to do and that

person's brain goes to the deepest darkest places that it can uh and and Todd just doesn't allow that he does a

phenomenal job so when when Jeff said hey how far behind are you on your bills

what do we owe you Jeff so so based on this next question that he asked I he

might know you I don't know because I don't know who Jeff G is by the way um but he says how many how many of the

lake houses are actually on the water and not a block away

yeah they're all on the water that's what I figured but I just want a map so

I I don't know the um I don't know if there's if there's

anything deeper behind that question but okay all of our lake houses are directly on the water that's awesome I mean I

would yeah I wouldn't assume that's a nefarious question I I think you can say lake houses and they have Lake access

and and there's there's nothing wrong with that but um and this is a vision Brian had like

years ago and we're just kind of finally we're kind of finally jump jump into it and the Market's been really nice to

make the ship instead of doing like 50 flips this year or 52 we're going to do 26 and 26 or you know maybe even a

little bit less but we're going to convert you know 26 over to short-term rentals maybe we we we're we're kind of

on a nail it and scale it so we may even slow that just a little bit because this uh the short-term rental business is not

a passive uh business it's pretty active and there's a lot of management that comes along with it

so we want to make sure we get it right but uh one thing that I think we've done a really great job is finding really

great houses that are on water and you know one of the one of the things that's out there that people have

told us is the number one thing that folks want especially when it's kind of a lake house of sorts even if

it's like access but they want to lake house they want they want peace peace is what people are searching for in these

short-term rentals they just want to go somewhere and feel at peace and there is something about looking out at a body of

water whether it's I mean we've got you know we're on beautiful all sports lakes and then we've got some stuff on just

some I guess would be called a pond but you know yeah you could still swim in it but it's beautiful but it's just

beautiful to look at and so we have not gotten houses that are a block away

we've gotten them all right on the water which I think is key for some of the

rates that we're able to yeah and and that's the good thing is like I remember I grew up here in

Michigan I'm from Ferndale actually so I grew up in Ferndale I went to all Ferndale schools and to me it was okay

all the written I I lived on the Poor Side it turned out by the way so uh all the rich kids they they take go on the

weekend with the parents and go up north to the lake on the Brit on the you know with the boats and all that and never

got a chance to do that or ride four-wheelers or do ride dirt bikes whatever

and so I always thought that was like the coolest thing to do and they that's like okay you made it when you got a

lake house you know when you got a place up north you can go to and things like

that so Randy Randy you made up for it because uh you moved North I did a

little town called Clarkston which is right next to that one of the America's greatest cities Waterford oh yeah most

definitely I may or may not have grown up in uh but uh there are a ton of Great Lakes in you know Clarkston I think

you're very aware of the one year yeah actually my subdivision uh we have access Lake access to one of them yeah

it's a block away but I don't consider my house a lake house so yeah I think

there's a big distinction there for sure yep so um actually Dave from uh YouTube uh

wanted to piggyback on the discussion about um purchasing and the rehab plot price

and things like that and to sum up what he's asking is the funds that you get for the purchase price and the uh rehab

are you genome for just that property or use you use are you using that funds for

like uh for the other properties that you have as well

does that make sense yeah yeah totally I can take that it is it is a this

is a crazy cash flow business and we're constantly um working on different houses we P we

set that money aside for that house it's there for the house if there's a need here and there it doesn't mean you don't

you don't borrow from from one to the other because you you need cash flow to

do business and to get houses listed and stuff like that um but our investors know we pay we've

paid every investor back a hundred percent of the time we're on house 200 and something right now uh so we've got

an amazing process going we've got phenomenal investors uh we give them investor updates they know what's going

on in all those houses we work uh super closely with our real estate agents who are part of that investment team in in

different ways and um but but it you know it is a cash flow business so there

are times where you know an unbudgeted item will come up and you

got to take care of it and you're and you're not whole until the house sells you know so you're in that crunch time

on it every every flipper knows you're in that crunch time where you put the money in and you're waiting for it to

sell to come back out it always happens we've sold 100 of our houses it will happen and sometimes it takes an extra

minute um but it actually never really did we sold houses pretty quickly back in the

day it's taken you know normally we listen to Friday and everybody this this isn't necessarily

um just us but we listen to Friday we're talking a real estate agent on Sunday with multiple offers so that's

how it always won for the most part now it's taken you know a couple more weeks and but regardless you're still locking

into a 30 45 day 60 day more sometimes based on FHA and stuff we are way you've

sold the house you're just waiting for the money to come back and he clarified the reason here is because exactly what

you just said about the the the the cash flow the Crunch and with the market slowing and things like that and uh so

he he also commented saying thanks for the clarification you have to be careful at the same time

you know when when you're doing a few houses like like last year our average like we owned uh third in between 30 and

35 flips at any given point in time um you know we don't have 30 to 35

different bank accounts uh so all that money is going into the bank account some projects you go over on some you go

under on and you know when when you're in scale mode uh I don't know if this is

gonna go the right way up into the right and I don't know like that's okay either

way we get it I'm gonna go up into the right with this way for me so so when you're going up and to the right like

what happens is as you're adding more and more houses like you finish the project now you're waiting you know that

two months for that house to sell you're just sitting there waiting for that money to come back and as you add more

houses like it's constantly like just throwing money at all of these houses the only time that you know I've heard a

lot of people that have done a lot of flipping at scale and really

you know we we were at uh Wendy Patton's event last week yeah there's a lot of people that do

this at scale that don't ever feel like they have money because you're constantly throwing it at all the houses

so really the only time where you feel like you truly have money is on the downside when you're starting to sell

off all you know when you go from a position of like Hey we're gonna do you know 50 60 70 houses a year and now

we're going to go down to 12. well now when it starts to go down that's when all that money that you continue to

invest starts to come pouring into the business so we're five years in the business the other part where where it

starts to pour into the business is just over time as you you know continue to do profitable houses uh and then it just

you know that that always adds to the coffers but but it's a challenging business to do Flipping and scale it

requires a lot of cash a lot of access to cash and it's one of Todd and my superpower I would say is that we do a

really good job with our financial investors to be able to make sure uh that most of the time we have enough

funds to be able to purchase houses to be able to continue like keeping the business going so kind of with that Alex

killbro uh said he asked where do you guys get your funding from and I'm assuming private investors is that right

yeah yeah it's private investors and then somebody up top asked how did you fund the first three Deals yeah um so

kind of piggybacking off of that like so one of the advantages that we had is we

partnered with somebody that had experience and because he had experience we were able to piggyback off of his

experience with private investors so Todd and myself both had a little bit of money from our corporate days uh that we

put into the business um but you know it's definitely not a ton we're able to buy a house or two

with it um and then you know so you start with your private investors and this is what

I would recommend for anybody that's trying to like get off the ground with this stuff like partner with somebody

like be around a project so you can actually say hey this is you know I've been around this flipping business I

have done this project and then one of the things that we do Nicole on our team uh who's here she says hi team what up

Nico uh he is Awesome by the way uh how's it going Nico

she and talk about secret sauce uh that girl is on fire uh she can sit here she

could take this entire 90 minutes she could probably talk the entire week [Music]

about everything flipping and uh absolutely amazing um like yeah Randy if you're looking to

do a flip someday we will connect you with Nicole and you'll be all set I I would love to so so she she's just a

wealth of knowledge but one of the things that we do is with our with our investors we have these investor Decks

that we send out and we share them quarterly uh but it as a new flipper

that's just getting off the ground if you partner with somebody even if you're a wholesaler that wants to be a flipper and you say hey can I come along for the

ride on this deal can I help see how the decisions are made then you can start to show some before and afters like hey I

was a part of this project in this regard I saw the you know I was at the table uh you know to be able to hear how

the decisions were being made and here's like just a little PowerPoint an investor deck that shows befores and

afters and then you can talk you know in an educated you know manner with these

investors you know then it shows them like hey you know what you're talking about I get

that you don't you know have a tremendous amount of experience but what you lack of an inexperience you're

combating that with like a professional presentation you're showing that like hey I've done this you've been there and

you've seen it uh and you know that type of stuff goes a long a long way just the

professional side of the business uh to be able to fund these and then over the course of time

you know I'm not gonna go too deep on this but this list right here these are

all investors for us oh wow okay so um so it's a lot you know and over the

course of time you start to um you know grow that and you nurture those relationships and all that type of

stuff yeah so I'm actually one of my buyers that I'm working with uh it's

funny because I've sold him more than three Deals but um three Deals recently and one of them

he got he made a nice profit and because I was a wholesaler on it I had it on the

before photos so what did I do I I went through it I did a walk through video I

did I interviewed him and I actually posted up on my YouTube channel so if you haven't watched that video it's up

there on YouTube and uh we are watching or were he has

two more flips he's in the middle of and he keeps sending me these progress photos and videos and walkthroughs and

it's it's like dude that's awesome like the the decision that he made and what

he did to do that and it is really crazy crazy so we're going to do the same

thing on the neck on the next two as well so it's uh it's really cool to

learn the process from from a flipper doing it like I'm in the trenches with him I'm not making the decisions

obviously but like he's telling me what he's doing and the reason why

you know so what makes it easy yeah so

and I think you already asked this and this one from Jeff G about the flipping over 200 houses and not having

a lot of reserves or whatever I mean you pay back your your investors pretty well

in order to have that and I'm sure you guys have reserves somewhere no

I do think though I do think Jeff's asking a really great question and

I'll bring it back up here yeah it's funny I think it's it's a question I've

asked myself 100 times too but here's here's the situation so you

were doing all these houses you know the majority majority go well and so you've

got money coming in and we are when you're scaling you are reinvesting uh a

lot and what we've started doing in the last year that's really impacted cash

flow is these these short-term rentals and we don't have a perfect Funding Solution in place yeah with short-term

rentals but we put about you know a hundred thousand dollars and we're starting to go out and find some great investors who want to be a part and and

and and kind of come and come in on a property and say hey I like that lake house I will put in a hundred thousand

dollars and it goes on top of that house but right now we've done like seven now we're actually working on more but we've

got five launched on seven it's a hundred thousand each so you and they're just they're locked in the house I mean

they're they're in that house they're not coming out until you're kind of your attorney start getting the money back

slowly it's very different than flipping flipping you get the money back more quickly not as quickly as you do Randy

with wholesale but and we do that as well but but we've you know we've spent a lot of time when

you're scaling investing in the company we love the short-term rental business but it is an unbelievable cash crunch to

the nth degree like we haven't quite seen before and we're figuring out maybe my favorite thing that we did near the

end of last year was take our incredible bookkeeper with REI books um Dirk and Joni and uh we've moved Kirk into a

fractional CFO position where he can help me I mean we've been threading needles all the time to make the cash

flow work um but we're starting to do some real forecasting and stuff like that so we know when houses are closing when that

money's coming back and what we need to legitimately do these short-term rentals because if you know we're going to do 26

like not real good at math here but if we do a hundred thousand per house that's 2.6 so that money can go you know

2.6 million that money can go pretty darn quickly and it's a great and it's a great buy like everything's good we

still the house appraises for a great amount it's all in there but we're still on top of the loan that we're getting we're

putting you know you know yeah of our own money into that deal and

there it goes and it's just stuck there for a while so so you know you kind of

skimmed over this wait you called it a fractional CFO now I've heard this

term one time before and I've heard it from one person pace morby

and I heard it from him that's the first time I ever heard something called

a fractional CFO so for the people who don't know what a

fractional because I've only heard it one other time so for the people who don't know what a fractional CFO is why don't you go ahead

and explain what that is yeah sure it's pretty simple it's it's like it's like a

fraction of their time right can be can be whatever you know we got four different businesses so it's a it's a

decent fraction sometimes but it's taking uh our bookkeeper who's got you know Mad Skills Beyond bookkeeping and

and could be a CFO anywhere and wants to kind of stretch his brain and and and

and dive into the business and understand it he's a great team fit and phenomenal person he and his wife both

and so we pull him into a little bit more than just the bookkeeping where he's creating cash flow reports so you

know obviously doing all of our P L's and our balance sheets stuff like that that's the basic bookkeeping but taking

that and putting forecasts on top of that and running projections and and allowing us to go real live time with

you know our budget versus actual while houses are going and stuff that so it's allowed us to take our projects to

another level you really have to be doing that when you're operating at this kind of volume otherwise you're just spinning with houses and numbers and

stuff like that so that's been uh it's been a really important part and a big step for us this year is to have Kirk in

a fractional CFO yeah but it's just kind of like a part-time CFO he could be a CFO for us you know in like two or three

other companies at the same time got it so it's not got it so that yeah that

makes perfect sense and and that's kind of how it was explained as well I just wanted for everybody else to know what

that was because I like I said I've only heard it ever one time and I was on a YouTube video so

so it is out there you can do it uh you don't need to play a full-time CFO

especially if you don't need one for a full time so um and then I this is this question

comes from Andre Kingston I you know is there a market for short-term rentals

for Hunter Havens versus the lake house lake houses and things like that

I mean I kind of understand that question do you guys do you guys do

yeah so so yeah I mean he's just asked it from my understanding it basically

you know is there um it do short-term rentals work for hunters

yeah and and the answer there is maybe you know like it just depends like

you know it as an example we have we are we have a JV partnership

this is a lake house but the example still works we have a JV partnership with a house in Battle Lake Minnesota

one of our investors it was their it was their childhood like Cottage that they went to

nobody lives in Minnesota anymore but they don't want to get rid of it so the house is free and clear so since we are

deeply involved with this business we run uh the Airbnb for them uh and like

it covers they're not like they're you know like covers the taxes covers the maintenance of owning it they're happy

so yeah so from that standpoint if you have a house in the woods and it's paid off like a thousand percent you'll be

able to figure out how to rent it there's different levels of airbnbs think of them like Hotel brands uh I

gotta stop using that example it's a great example but I gotta figure out my hotel Brands and go with the uh go with

the the stores the Walmarts and I always think of restaurants like you got your Mortons

you know and you got your yep you know what I mean like so what what what brand

are you so if you if you're on a cabin in the woods um you know are you gonna be like a

luxury Cabin in the Woods are you gonna be a budget Cabin in the Woods uh and then it's just a math equation because

you know for us what we do is we take a look and we try to say okay if can we

get 60 occupancy you know on average net net throughout the year for this particular property what's the average

daily rent that we can get for this particular property and does it cover

like all the like the bills um and leave a profit for us uh to to

the number that we're trying to hit so you can absolutely have like a hunter's

cabin uh that makes sense um you know it just depends on the price you know it so that's kind of a hard one

if you have a specific example we could kind of talk to yeah yeah exactly so I

can I don't have an example but and I completely understand that and over here in Michigan and going up north for

hunters I think it would definitely work um you I think the marketing just needs

to be out there for that so but I think especially here in Michigan

you don't have to you don't have to subject it to just Hunters because you

can use it all year round you know just because it's not on a lake it use if

it's up north it still has um you know the fall leaves and if it's

you know relatively close to the you know in town or or the lake you know

things like that so I you know all of that I I think Jeff kind of asked a

question that I kind of glossed over what the actual question was um he said how many lake houses are

actually on the water and not a block away uh yeah and originally we took that as like hey all

of our houses me um because that's the prism thing I should be thinking through Jeff's lens

right now um it sounds like he might have a house that is a block away

um yeah that can absolutely work you know if you have Lake access like it could we've chosen to purchase houses

that are on the water because we feel like that you know we we try to do like a high-end uh you know stay for our

folks and we think that kind of adds to it uh definitely try to find special unique properties uh I've definitely

stayed in Airbnb that was not directly on the water and guess what you walk over there it's a little bit cheaper on

your average daily rate you know so so you have that and then the other thing that that he kind of asked

was about the the rentals um you know and I think you're getting ready to go there sorry about that

that's fine you know the way that our funding was set up our funding was not conducive you know

we didn't pay cash for all these properties we used private funds to be able to

buy these house Fix and Flip them so we have short-term money on these uh and that was just the our our on-ramp into

the end of this business we did not have uh we didn't have long-term rentals uh

you know our first partner didn't have those uh so we didn't learn it that way

so we learned how to flip houses so that was kind of the approach we took um and it's kind of challenging and even

now like we have a lot of experience it's hard to go from flip which is

short-term money to long-term rentals and even short-term rentals both both short-term rentals and long-term rentals

require long-term money and to be able to make that like you know pivot uh it's hard it's not

easy yeah because the thing is is that when you're using short-term money like if you're going to want to keep it

you're gonna have to use the burst strategy well there's also a seasoning period behind that and you also gotta

make sure you know with how the loans are going right now it's like well when

you get it the rates might be four percent but when you're selling it the rates are like six percent so you know

you don't really know um sometimes it may work and sometimes that's an exit strategy and you have to

buy them enough right to uh and this is the way I've learned that the when I'm

selling a house I have to price it enough where my buyer you guys uh would

have multiple exit strategies okay if it's fixing flipping great

if that's not working if it's not selling in time you know what I'll refinance it out get my money I'll use

it as well you know or a short-term rental you know whatever the case may be and so it's

just different strategy and you may not use that on all of them or some of them

but you know it's just a tool in the tool belt you know Randy I will say I

read that question from Jeff and uh I love his questions because

these are the same questions that I ask myself and I would I'm like literally if

I could go back I would love to go back through all our houses and say that one will rent that one we should have rented

that one we should have rented yeah it's also um but you're right I mean ideally if

you could do the burst strategy which is buy you know rehab refi and then rent it

and leave no I mean the bird strategy is trying to leave no money in the house you're getting yep by the time you you

know refi it you get all the money back with the rehab because the appraisal

rate was so high right I'll tell you and then you can you can run it out and it's all positive cash flow so if we could do

that every time you would certainly do it otherwise you're still leaving money into the rentals however I totally agree

with Jeff if I go back in time right now I would love to pick like I don't know if you'd be 100 ounces but

I could definitely find you 25 houses that we would put in our portfolio all

day long for long-term rentals and and a handful of those for would be great for short-term rentals as well and if we had

done that we'd probably have some way better cash flow coming in as we go so so that that's you know that's probably

that's something I tell people now like if I could go but what would you do if you could go back in time I would definitely have picked you know siphoned

off one two three one out of five maybe one out of ten something to put into rentals just to create a cash flow

bucket yeah and I I have that too I have wholesale deals that I I wish I would

have just been able to take down myself the issues you have is your experience your timing your cash flow your whether

you can do it just your timing and life okay you know my in my case you know I'm

working at I was working on my a renovation at my personal house so that way like all my money was going towards

that I couldn't use anything for any rentals or extra projects stuff you know

um you know so it's kind of everyone has their own um path that they need to take they

learn everything as they go um and that's why I call it a tool in the tool belt whether you use it or you

don't it's still a tool there for you for you to use so

uh yeah you know the the other thing about that is like you know we we've been doing this five

years uh five years in the business and you know we we've done a lot we've done

it pretty quickly uh this year like we we recognize that we we were waiting you

know to go to Jeff's question we were waiting uh for the market to change and

you know while the Market's on an uptick it's like okay well let's let's sell these things now the Market's on the

downtick now it's like okay we are gonna we're gonna start buying these like our our

goal this year for long-term rentals we plan on purchasing in between 150 and 200 houses in the city of Detroit for

long-term rentals to try to prevent against some of this cash flow stuff uh going forward and then same thing with

short-term rentals you know so uh so that is that's a huge goal that we have but you know it's always you know to

your point like it's all timing and life right like yeah we are we're in

the position that we're in right now we recognize it and now we're trying to kind of adjust accordingly but you know

being able to do what we've done over these last five years has made us you know uniquely qualified to be

able to try to tackle this stuff that we're trying to accomplish this year um and as annoying as it is that we

don't have a hundred rentals right now you know we we recognize that that's an

important part of the future of the business and that's you know we kind of pivoted like pretty quickly to be able

to do that change their financing changed all sorts of buying criteria partnered up with people like I did a

lot in a very short period of time to be able to turn the ship in kind of a different direction and and you know

what that's what I call it's called business you adjust and yeah you see what comes

in you take what comes in and you adjust on the Fly and uh this is you know

that's why I love doing these podcasts that's why I love doing you know talking with people in business because you know

what everyone says oh this is going to be like 2008 no it's not it has its own

unique circumstances and you have to react that

way now you can take parts of it from 2008 and apply but it's not like 2008

okay I you know for anybody who uh was

around during that I was you know I was just getting into the adulthood

you know as far as well congratulations you caught you crossed over

we were rooting for you Randy good job I know right so you know I graduated high

school in 2002 and back in 2008 I think I was just becoming

a mechanic and you know I ended up getting laid off in 09

went back to school I've reinvented myself probably more times than anybody

else has in their entire life so it's crazy but I have fun doing it and I've

learned from every single thing that I've done so I you have to Randy I mean

it's it's so important to be able to um to be able to do that I mean you

listen to Todd's background like you know the banks and companies that he's kind of talked about over over the

course of time and things that we've done uh that he's done that I've done like you're constantly

you know I like to look back in these like little five-year increments and so

yes we're sitting at an investor lunch one time and and he was just kind of

talking about like he had the throwaway comment and he's like isn't that crazy how much you can actually accomplish in

five years and then he just kind of like kept his thought going and like for me my brain exploded I was like oh my God

like five years ago like we were just getting into the flipping business we hadn't flipped one house you know five

years before that you know I started working with Todd and and with Todd we wound up you know selling you know going

through two Acquisitions and then five years before that I was in a position to where I was working a corporate job uh

but it was not my favorite job had a ton of debt made like a whole bunch of like

Headway to try to get rid of that debt and then was able to start that

entrepreneurial incubator that Todd talked about at the very beginning so you just kind of look at these like weird five-year increments and I think

for Motivated people like yourself Randy where you know you're always trying to reinvent it's like you're just learning

you know you're learning and pivoting and moving forward failing forward and man that's that's how you know that's

what success looks like you know you just kind of keep doing that over and over and over and over and then pretty

soon you know I started working at Quicken Loans in 2004 that means that I am 19 years into like mortgage real

estate uh credit uh you know all that type of stuff so pretty soon you're just

like holy crap I did not intend to like be an expert in this field but you know

I can talk with you about mortgages I can talk with you about like real estate agent stuff I can talk with you about

houses and flipping and credit and like it's just nuts like everything that's surrounding this business appraisals you

just learn it over the course of time and even your job as a mechanic I'm sure has helped you doing this in some weird

way oh yeah and that's the thing like it's funny because you know I went to

mechanic school I went to WyoTech anybody who knows biotech or whatever um I went to WyoTech you know was a

mechanic when I got laid off in the Auto industry I went to become a photographer

I went to school and became a photographer did that for 10 years then got it back into the automotive industry

and on the other side and now I'm in the r d side of and I'm a technician so I'm

still kind of back in the mechanic realm and that's my day job I'm an electrical technician

you know in the r d space and then I started this business doing

wholesale and real estate completely separate but guess what it works because guess what everybody else in this area

is in Automotive and I can relate to sellers I can relate

to people who work in the automotive industry you know yeah so yeah

hey Randy one of the things that you know for for your for your listeners and

it sounds like you've done a great job of and we believe pretty highly in it is just just partnering surrounding

ourselves with great people Brian's phenomenal at helping anybody that needs help anybody that's got a question

anybody wants to ride around and Shadow him or learn from Nicole or heck I mean

we talk about Nicole a lot right now because we're talking about the flipping business we've got a leader Jen lamming who

ran our wholesale business for a while moved over and is doing incredible things in the short-term rental business

uh right now you know we're partnered up with TC Greenwood down in the Detroit stuff he's amazing love TC Ryan and

Alicia Tower doing some wholesale stuff yeah I mean and and having people like

I hear some things that you're passionate about there's nothing better than doing the things that you're passionate about Jen loves hospitality

and handyman he's running she's running the hospitality business a hundred percent she's dealing with people she's

phenomenal at that Nicole's got incredible design so like our houses don't just get rebuilt and painted and

carpeted they get they get incredible people walk in they're like wow and she started soft staging it and now she gets

to take those same houses and turn them into airbnbs and they're Knockouts you know and and you put people in their

passion Zone uh and it goes a long ways but surrounding yourself with good people and we say last thing there is we

see all of these houses and as opportunities and back in the day we

were really you know we're really good at flipping and the market just said hey it's a great time to be really good at

flipping uh so we did and like it's hard to it's hard to keep something

it's easy for me to say I go back and keep those 25 ounces right now but at the time you're like it's a great deal

like we just did a great job on it the house was amazing it's going to get multiple offers and sell for more than

we the arv that we had initially so why wouldn't you do that um yeah and now the markets just in a

great place yeah it's in a great place for renting and stuff like that so we're making that pivot and we just see them

all as as great opportunities and you put a great team around it and you know generally speaking good things happen

awesome now um I believe it was Andre Kingston who asked Maddie he contact you

tomorrow he has a few examples and this is the guy who asked about the the hunter cabin so yeah absolutely

absolutely not on that one what's your next question

uh no no call Brian no no a thousand percent I'm

I'm not just paying lip service um happy to help anybody it's um part of our isms are you know one of our

isms are we go further together wholeheartedly

so one thing Cornerstone Metro Realty from YouTube actually has is have you

experienced flipping non-residential Properties or um just going into Home Building

uh we we haven't done anything non-residential but the one one of the

things you kind of learn like we haven't done that yet but like construction's kind of construction not not to really

dumb it down uh but if it made sense we've looked at apartment buildings we haven't done one

of those yet either uh it really just comes down to um we're super opportunistic about

whatever comes across our plate and if you were to come across a commercial building that needs to be flipped or

updated or it's Unique and that you know it's an opportunity for us then what we would do is we would take a look at that

and we'd go okay like here's our here are are our people that can do these types of

jobs um you know that do our houses can any of them do this type of job and you know

I think we have a couple that could probably handle commercial stuff right now and then if not then it's like okay

you take a look at your network and you go okay well who do I know hey bro you

don't have to look any further we've got a we've got one of our construction teams right now masstop construction they're unbelievable with Mason and crew

and uh he has been begging to do a commercial project he's like what he's like why do you guys do these these

these families single-family homes you're crazy go to the construction we'll white box it it's so great we'll

rent it out the people come in they'll pay for their own construction for their little shop within your your big

building that you're renting out he he thinks we're absolutely nuts to have not done that so we will do it at some point

and we've got a crew that is like uh phenomenal that is all about that's one thing I find interesting about

commercial is that you can rent it out to somebody and and they're going to pay for the renovation and you don't have to

okay yeah now awesome so with that being said we

kind of already got into where you're at right now and I kind of want to sum it

up a little bit you got your Fix and Flip which is what you guys started off with uh you got your short-term rentals

which we already talked about for the lake houses one thing we didn't talk about is about your wholesaling business

so why don't you go over that for a little bit and like how are you getting your wholesale deals what are you doing

in you know because as far as your inbound or are you just jading with people with Buyers or anything like that

yeah this has gone through a couple of revolutions uh so and we've had maybe a revelation within a revolution so

we started totally internally just kind of doing ourselves Jen lemming ran it she was phenomenal and then we we found

these things called short-term rentals and and she was like born to do them so you know Jen's like how can I get move

over to here and so we've done a couple turns we brought a uh uh we brought another leader in to

to run the wholesale internally and we did um oh I stuck it somewhere I was going

to show you a picture of our um what I do with that dog on it our uh our postcard with Brian's beautiful family

on it but uh we have done uh we've done posters front and center

you know what happens in the office a little bit so it looks clean if you look here and here it's really not clean but

I cleaned it so that you know I would it would look good for you Randy but in cleaning it I knew where it was before I

cleaned it no I don't how often does that happen is it on your nightstand Todd is that where you put it oh man

they're everywhere dude they're we got an entire refrigerator with just friends family on it so do you before you go to

bed you kiss your wife and then look over there

but uh so we so we did that spin and and we just you know we were doing pretty

good I in fact I was just running through the numbers with a super small team um barely even trying we did like

30 deals two years ago and we did uh even 15 last year as we were just kind

of almost not even trying to wind it down no went over went a little over 200 Grand uh with that business but we were

also pumping a lot of money into it and we were putting some money into the marketing too so that was hardly all

profit um but uh but near the end of the year we kind of realized we just weren't as

good at the sales process as we wanted to be and we found an incredible mom at

Pop Shop uh Tower home buyers Ryan and Alicia who are doing some really cool things had some great processes in place

and we've really converted over Ryan we've put you know a couple va's around

it we've put a great Acquisitions person a great dyspo person we've got some

offer makers and we're doing right now 100 text uh okay we got a great process

around it and we're starting to really get some traction on that front but we just started that you know a couple

months ago so we're just starting to put those in place starting to see the fruits of that and then we'd like to

build and scale and get you know we've got a goal to get into a second Market to share whether it's Grand Rapids or

Ann Arbor but we kind of want to nail and scale it first here in Detroit and we've we've another goal that we have

for 2023 is to really figure out our tax our Tech stack so we're going from like

REI reply from twilio and some you know smaller quick hit stuff that's great and

Nimble to like left Main and Salesforce and

launch control and stuff like that where we've got a little bit more power and data and we're putting it REI sift

in place and stuff like that so we can really get control of the data as we're doing a lot of data and Skip tracing

right now so we're Solutions big company around it it ends up being a different different Tech stack and Company and you

need some more people to kind of fill those gaps but when you've got a great process you can you can kind of build

around and you got a great team and Ryan and Alicia are phenomenal so yeah who are you using for your skip tracing

Services you know we were doing some uh some ja stuff that was like three Cent

and six cent and it was doing okay and we were comparing it and we just moved over to IDI and like I say that we just

moved over what we've been doing batch leads as well um the IDI data for

10 cents is pretty solid I so far so good yeah that's good I've been I've been

using lead Sherpa um as well and things like that so I I

found out that I didn't have good data coming from the like they're really

inexpensive places so um but I did want to say that if you

ever do need my little pitch here if you ever do want a JV on anything I I do

have buyers in the in the Tri-County areas I have buyers that are looking for

Metro Detroit in the suburbs all the time so

for sure so um so with that being said I you know

you're kind of what is your goal or what do you think you'll do this year on

wholesale deals you know will you hit that 30 will you are you trying to do like a couple a month or five a month

yeah we were just going through we were just kind of set up uh you ever used you ever use the the traction methodology

and book to kind of set goals and stuff like that we we just got I thought Brian was going to hold the

book up there we go uh we've just been kind of

running our team through goal setting I mean we just did it I might not get this perfect but uh our goal is to do about

800 000 this year okay that breaks down in q12

I think it's 86 uh hold hold it up again and see

traction right look look at him look he's got it open like he's actually reading it too I know right

there's just pictures on the inside of those the pictures of my family on the

postcards that's all I just I don't know that's awesome so our goal in q1 Randy

is is 86 uh thousand dollars our goal by the end of the year is to be ramped up

in October uh sorry September October November December is a little tricky month as you probably know yeah in uh in

wholesale so the goal is to get the I guess we're at 82 for the first quarter and then 86 000 run rate per month at

the end of the year which is a run rate of a million and we've got kind of a plan to get there it ends up being 800

000 for this year and then it starts to really scale from there once we get to a run rate of 86 000 a month

honestly now it's about it's about 80 deals total this year okay so now I got

a quick question was how did you overcome or react when uh

twilio uh for the texting and change their their requirements did you just

try to go on the Fly did that bring some down time for you since you do mainly

texting you know it was probably pretty fortunate timing for uh Ryan Alicia and

Sarah homebars because we already had launch control in place that's our texting mechanism

they're they're they've got their own deal they've got incredible

guide posts and guard rails in place to help you

really make sure you're getting the right messages out to the right people and you're not and you're not getting in

in spam and they're super careful on that and you're creating all kinds of spinners and stuff like that to send the

right messages and different messages uh twilio you know can't real launch

control and there's no commercial for lunch troll just what we use but they cater to the real estate business so

they understand real estate to the nth degree twilio is is just a service for everybody and yeah so they they're

they've done nothing specific I'm not ripping on twilio it's just the case that was so we flipped over to launch

control it's been great we've got our va's running like I said we were already doing it on our side okay so we just

basically converted everything um over from REI reply and twilio to

launch control that's awesome yeah I've only dabbled in the text messaging

I mainly a component of cold calling myself so

you know I'll have a NVA call call to get the initial set up and then I will do the follow-ups myself so

I'm looking I'm going to be looking to scale things um as I go

it's not to say I I'm at a good place now it's I'm working my processes out doing with a day job it's very hard so

yeah you know but yeah because people love those dinner time phone calls Randy

that's great oh yeah when you're done what do you use to use like Mojo dialer

or something like that to uh so we use call tools so I love Paul tools because it doesn't

go to my phone like if I'm not there to answer it like it'll go to a voicemail and then and then I'll get an email

right away with the recording so I don't even have to log in to call Tools in

order to hear the voicemail all I do is it comes straight through the email listen to the reporting and I can choose

to call back I can choose later or anything like that and then what I do is

when I do my follow-ups I don't use call tools um call tools is mainly just the initial

and then I have it Go the anybody who says yes they want to sell I have it go

to my podio so um then that goes on my podio and then

I'll follow up and I actually have a Google Voice um set up which is this number right

here so you can always reach me no matter what that goes straight to my cell phone so and

that's how I follow up is to my Google Voice number that's awesome now that's a great system

and podio was great we started on that and then we moved to investor fuse which is a kind of a different version built

on top of podio and then recently moved to to Salesforce so just it kind of brought everything

together a little bit better for all the different things that we were doing that's awesome so now do you guys have a

physical location or is everybody remote yeah we have about 30 of them right now

that's called all your properties you know we can we can meet at Airbnb as

we actually have a place that we've been using kind of as an office right now it's it's our one house it's kind of

funny it was the first thing I thought of when I saw Jeff's first question because we do have one house

that that it's it's uh Cooley Beach Road and it is uh it's actually the lake is

on the other side of the road uh we never call it a lake house but it is right there and it has Lake access and

all that kind of stuff um but that was kind of the first thing I thought of and we have used that as a as a kind of a rallying point because

it's it's kind of central it's in Commerce uh or White Lake and it's just kind of right there where everybody gets

together next to that amazing town called Waterford yeah

well I you know I'd love to meet your team in person one day and and maybe top

strategies about your whole family team um you know uh whenever you have time and no rush you know preferably some

right now

we like to do it out on the jet ski right it was definitely

so that sounds good well yeah I would love to connect with you and have those discussions or any I think that'd be

great that's that's one thing uh our team uh does a great job of but we could

always do better and and we're looking for you know we're part of we're part of uh great Mastermind groups and stuff like

that but we are looking for great local people who know the business incredibly well and look at a team and partner and

do something pretty special in Detroit here so I'd love to uh kind of join forces with you for sure yeah most

definitely and love to love to work with you I love to work with anybody really so and and kind of bringing that on a uh

Johnny Dapper um actually said he's an I.T professional Johnny I you can read the

whole whole sentence here but basically had the gist of it is hey if you want to

book a a one-on-one call with me I'm offering free one-on-one calls for

people who want to talk about real estate um wholesaling or just in general

um give me a call my number's here at the bottom and or my email scroll at the bottom as well and we'll schedule a call

the only requirement I say is we record it and I can put it on my YouTube channel that's the only reason I do it

for free so and uh so I'm doing is anybody out

there who wants to do that wants to take me up on that my number's at the bottom here my emails at the bottom hit me up

and I'm always happy to help anybody else out we'll record the call just like we're doing here and take it from there

hey I know you're right but lastly I'll say with Johnny in that message he's an

I.T professional um like I said earlier we love to take people who have skill sets and passions

and use them there's so many different things that can be used within real estate it's kind of bizarre it's almost like oh yeah every passion has its

little way into the real estate business but i t for sure I mean there's this

thing called integrators and they're basically Brian Brian's done a big talk

up on a big stage somewhere he's kind of a big deal I'll just ask him he'll tell you but uh he did he did do a really

cool talk about it being an all-connected business where there are so many different things that Connect

into real estate and and I.T is certainly one of them so Brian you probably have a good discussion with

Johnny on that even and you know Randy there's all kinds of things oh yeah connected all the time

most definitely so Dave Dave said this one thing he wanted

to get out he said one last thing my disability and the things I was able unable to never uh unable to do uh never

mattered to 1701 family and Jen and everyone else treating your utmost

respect and dignity good people no doubt 100 that's a testament to you guys and

what you guys built Dave took his disability and he used it as a superpower he's uh he's an amazing human

honestly I honestly I didn't know he had a disability just meeting them so yeah you

never you never would he's phenomenal yeah so real quick yeah we are coming to like

an hour and a half setting here I want to get to the point where you guys are going in the

future and where you guys want to go to and then how can anybody here who's

watching help you meet that so uh okay so basically our goal this

year uh we want to do uh in between 150 and 200 houses in the city of Detroit uh

specifically on the West Side typically brick you know that we're looking that are

worth a hundred and ten thousand dollars or more uh we want to fix those up though uh so so we're trying to do 150

to 200 long-term rentals uh we're trying to get to about 80 wholesale deals which you know like

like we're we're you know that might be more challenging uh on the side of this group but if

um you know you have any wholesale opportunities you know we're building on a pretty robust you know dyspo and process and

all sorts of stuff so we can do that we're also trying to purchase 26 Waterfront and destination uh Airbnb

short-term rental properties so we're trying to be within 90 minutes of Metro Detroit and if we're looking for special

properties if you've ever walked to a property and you're like oh my God like this is special and it can be unique

like it could be an old like Firehouse or it could be an old school building or

you know something that's just like on a special piece of water like we're open for all of it ideally

those are fixers we'd love to fix them um that kind of works best for our model and then the other 26 properties we're

trying to do is flip properties typically in the suburbs and we're all over Metro Detroit

so we kind of go where the opportunities are um yeah and you know we just kind of

kind of tackle it that way so awesome so that's that's what we're

looking for we're looking for those things and then of course we're always we're always raising uh private funds

as well so most of our private funders you know they they fund a hundred thousand

dollars uh you know some of them fund more uh we got some bigger people that fund a lot more but you know anybody

that's interested in kind of going for a ride and learning kind of the inside baseball of this business

we're happy to talk with you about being an investor in 1701 homes and kind of everything that we're doing and with

those you know we always you know offer the inside baseball of what's Happening you want to learn about short-term

rentals we'd love to talk with you about short-term rentals we can invest your money there we can do it in the flipping business like really whatever

you know they are like excited about like we try to like augmented earlier try to put people with their passions

and you know if we can help people that are looking to invest uh kind of learn

along the way then we do that stuff as well that's awesome hey Randy some of our

most fun days in the business over the years have been taking investors and doing house tours like you know and

seeing houses at different stages and they get to ask questions one of those things you know you can invest and it

can be totally passive and that works too but we're also super happy to throw in a car and go see them and usually

they like to we've had investors take you know we'll take them to houses that were like half order houses and they're

taking stuff home and you you know ladders and and what you know whatever there's so much stuff that comes from

the real estate business but we've had some really fun days and are happy to you know whether you're invested or not happy to take anybody around on the show

most definitely and that's the good thing about this you know get your name out there you

know investors investors want to they want to feel a part of the deal you know

especially the type of investors who they don't really need the money but

they need a place to park their money you know what I mean by that is you gotta I mean you got people that make a

comfortable living and they they got extra cash they just don't want to sit in the bank well they they would just

want to make a a nice return on it but they want to feel like they're a part of something and I think that's what you

guys do that's what help you know you help make them feel like they're a part of something you know they can brag to

their friends hey I you know I'm a part of this flipping game here you know so

you know it adds some credibility to them as well so I think that's really

cool now if anybody wants to do that if anybody wants to be a part of that

you know or just want to sell you any deals or anything like that how would they get a hold of you

so you can have them they could reach out to any of our socials everything social is at 1701 homes uh Facebook

Instagram all that type of stuff uh my phone number is

313-434-5019 they can uh text is probably best there

313-434-5019 uh email is Brian b-r-y-a-n at 1701 homes uh and reach out that way

so or just go on to Facebook you'll see me there send me a message um and that's how you get in touch with

me or us awesome and if you can't get a hold of them for some reason get a hold of me my

number and emails all the way down here I'll be happy to get a hold of them for for you for a fee I'm just kidding I'm

happy to connect people there it is all the time

you know so with that being said you know I'm gonna have you guys uh bring you guys down and stick around for me I

just want to talk to you um and with that we will uh we're gonna

end this podcast and you know one thing I always say uh when editing podcasts or

all these is you know let's all do deals together that's it hey man amen brother

all right everyone have a good day thanks Randy

Real Estate Talk w/ Randy Stedwell Episode #5 | Dean Gozowsky about the Market & upcoming events →

On Episode 5 we will be talk with Dean Gozowsky about the maket and upcoming events. Dean is a Agent, Wholesaler and investor.

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

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Hi everyone how's it going uh I just wanted to we are live here and I want to

we are here for another session of real estate with Randy Stedwell and there we

go real estate with Randy said what real estate talk with Randy Stedwell uh and

so we are here we are going to be joining with I

Dean Gozowsky and uh so happy

to have him we've had him on here before uh but this was before we changed the

name so I figured we'd bring him back and kind of go from there so this is episode number five for uh for this year

and uh we're about you know if you want to know his origin story or anything

like that go back into the YouTube channel and see the previous episode uh it was one of

the actual first episodes that we've done uh so I'm happy to you know have

him back and we can kind of go over uh more updated things like the state of

this Market everybody wants to know that what we're doing what he's doing for the future things like that things of that

nature we also have a a few surprises he has a few events that he's going to be

be announcing and kind of taking it from there so without further Ado

I'm gonna bring in Dean Dean how is it going what's happening man how's my

lighting I it's a little dark but I mean we can make you out so all right well I just

got this new this light over here and I'm trying to oh the ring light oh yeah yeah that's I I'm using that too

hey what excuse me but maybe mine's not big enough that's all right

compensation yeah thanks again for having me out man this is I enjoy being on the show and being

I feel like a star for a little bit you know it's like it's oh yeah over here well it's because you are a star

you are a star yeah I get it and you're the Big Dipper all right yeah let's play some Prince not at all no I I'm a small

guy I'm over here I'm just trying to ride your coattails over there you know so we're having fun we just got back

from uh Franklin Tennessee uh so we're part of a mastermind flip hacking live you heard that web or the uh the

event right foot packing yeah yeah so flip hacking live I if anybody doesn't know it was an event that happened down

in Tampa or was it Orlando yep Orlando that's where they had land last year yep yeah so it was a great event if you

ever get a chance to go again I definitely recommend going I did not go

myself I had personal things that came up unfortunately

but I recommend anybody from everybody that I have seen has come back

with stories upon stories of good things that happen and people good people that

they met it's all about networking no matter where you go to these events it's not about the speakers that are speaking

I think there's more value in just networking with the people that are there you know

you know so it's it's crazy because I don't really like as much as I want to

hear the speakers you know like the big time speakers Pace morby uh Jamil Daniels uh you know people like that I

it's great to hear them and and things like that but you really go there to to speak with everybody else who's doing

the same thing that you're doing to be able to come up camaraderie and and you know anybody who is well as who's above

your level and you can learn from them so that's the good thing about places

like that is that you can learn from everyone else just by having a

conversation and you never know where it leads to in the future so yeah you at a

network Meetup and look where we're at now yeah where was that was it was it at the Ria or

where was it what do you so I met you actually uh I'm trying to remember which Meetup

that I met you at because I I see you at quite a bit of them um I know I met you at the Ria uh and

then I think after a few more events we I met you at the like the the one at

mcv's Pub and and so on and so forth so uh yeah cool but yeah um I apologize I'm still

struggling with the lighting over here but I'm not going to dwell on that too much more because it's just gonna be like oh this guy that's all right

lighting is it I swearing on it that much but yeah I'm in a hotel room so

yeah so yeah so it's uh it's crazy I had to travel for my day job

but you know whether I'm traveling or not I'm still coming here to provide value to everybody else and and and do

my best so yeah I'm trying to be as consistent as possible every Monday at

eight so if you don't know where the next one's gonna be it's gonna be next Monday at 8 p.m I don't know who I'm

gonna have on next you never know so yeah unless it's next Monday at 8.

unless it's next Monday yeah no so so you were saying you were

talking about community and Association and you got a lot of these Talking Heads that are out there right now

this is what they're preaching right this is like yeah you gotta get together you gotta I gotta remember when we were

down at athlete packing live uh the pace

actually came in to speak and you know here's there was a meet-up that he was doing

off-site and some people actually went there you know I don't know if I don't know if

that was the one that Andre 3000 from Outcast or somebody from Outcast maybe it was Big Boy showed up

yeah I think it was big boy okay okay maybe it was that one uh but but in

short like they showed up him and uh I think he was with some other guy Jerry

Norton was there as well yeah and he says uh you know like networking

is keyed you gotta like that was his little his pitch you know yeah it's all about Association right so stay stay

with your group see with your you know your people and grow uh together and it's so important with community and

so or very very early in the show here let's talk about this because I've got

two events I want to plug shamelessly promote these two events and uh what

we've got is the 22nd of February okay all right the 22nd is going to be uh

one of our masterminds that we do all right uh there's no charge to get into this one okay you know I've already

made it to tfb you've been to these before we get a good you get a good decent turnout

that one right there we're going to talk about Market statistics we're going to talk about the trends and that's how I

started off all these meetings right so that's the first one to put into the event

or you're in your event calendar uh is on the 22nd of this month all right

February 22nd now it's going to be at six uh 6 30 probably is what we're going to actually kick it off and it's at

the Keller Williams office over in Novi and don't worry we're not pitching you you know come be part of Keller

Williams it's like this is what we're doing right Community right you said 6 p.m six uh

yeah arrive at six I mean I'll be there at six but I think we're gonna kick off at 6 30 and do the whole MC thing I

don't know exactly who's gonna be on the roster other than some of the folks that have been at uh

well just got back from Franklin Tennessee with us at The Mastermind so anybody who's out there anybody who's

new right here event February 22nd at 6 30 p.m now we will be posting in the

fight in our Facebook group Metro Detroit off Market Real Estate Group I will get with Dean we will post

whatever event calendar or anything like that that he's having we will post it

there okay so if you if for some reason you take it off I will keep reminding

you as well every every week um until the event but I will be there

okay uh so February 22nd I'm gonna look at my calendar see when that is that is

uh and and in two weeks from Wednesday so

you need to be there especially if you're new okay

um even if you're not new get to networking with people I he puts

on a great play uh you know he does great interviews and uh he has great

people talking but again it's just about getting in the room with like-minded

people period okay I you know if you have any questions about that reach out

to Dean you'll be able to get his information at the end of this end of this show as well um and kind of go from there so that's

the first event second event is March 8th

okay March 8th we've got none other than Bill Allen coming in from footpacking live he's the

guy who like runs the show all right so the guy he's trained many many different

entrepreneurs and Real Estate Investors and uh you know he's flying in he's got his own airplane he's flying into

Oakland County Airport and then we're gonna you know take him over to a venue um and to meet with some of the people

that are already involved in the 7ff team uh locally so we're going to do that and

then we're going to get on over to the uh the event and then again that's going to be at six o'clock at um

you know there's a little meeting spot that we've got going on uh over in White Lake we'll get all the

addresses we're gonna have an event page and all that but uh I tell you you know there's going to be a cover charge for

that one okay but I'm talking like this guy's gonna bring extreme value I'll drop the video

the promotion video that we've got in your page that way your people can have

a look at it and at least see what this guy looks like and then begin the you know the

search now when you say there's a cover charge is it it's not like a thousand dollars

right almost okay it's probably going to be about 25

and what we have to do we're renting a venue yeah this event will definitely outgrow the office we're gonna pay for

some of the things because well I mean the guy's flying his own plane in in that costs

you know but you know we want to leave him with something so so so in my opinion 25 is like a drop in the bucket

especially whether you're new you're not new it doesn't matter you pay more than

that on a freaking Starbucks for an entire week okay so get your butt out

there there's no excuses I you know pay the 25 bucks for the cover charge

you know uh and kind of go from there again I will be there okay

I you know on first as long as nothing unforeseen happens I will be there okay

and I you know you need to get around like-minded people period

community community community community period that Network as much as possible

all right that's I I cannot preach that enough uh anybody who says otherwise I

can do this on my own you can but you're not going to grow as fast you're not going to grow as much

it's tough business it is a tough business if you're doing it on your own

you know ever since reading Rich Dad Poor Dad it was uh

uh it was laid out right there that you got to build your team you know and then as this business evolves a little bit you know like and

you're truly paying attention to it I like that you've gotta like let me let me ask you real quick if what would

you say the percentage of wholesalers versus flippers in this group are

so I would probably say there is a good portion and there's

probably more wholesalers but a good portion of those wholesalers are also flippers okay and they're also

buying hold investors so um you know you still got a lot of

buyers that still flip and still buy and hold and you know I I don't know if I

could put a percentage on it but you know I I would say we at least have 50

of at least flippers and buying holders both buyers at least 50 if not

more so yeah so you know well here's here's ultimately why I bring that up you know

I've got a lot of different things going on in my uh my mind right now you know coming out of

this Franklin Tennessee event and you know they're talking about things like Ai and how to use it and you look at all

all this different information you know there's you know the real

estate market I mean right now people are talking like ah the Market's gonna crash the the FED is raising rates and

like all this stuff that we're hearing right like if it's one thing you can learn from me

is is simply you need to know your numbers you need to be able to track your numbers

you need to build your team you need but all that stuff goes in with it right but but moving on from the building

the team comment you you like for real you have got to absorb

yourself with the information you get you gotta just you know you know absorb

it all into your mind that you can and you know and it's not necessarily driving down the road and listening to

music like you're listening to the podcast you're listening to uh like specifically this podcast right yeah

like oh do you know how many people actually sit down and actually watch Dean wave his hands and you know you

know rather than doing that the way that I listen to podcasts Alex

hermosi whoever you know yeah I just put them on YouTube I'm right on the phone and just let it ride you know that way

I'm getting the audio I'm getting the you know some of the mindset that I want to you know put it from there

but as you're listening to the Talking Heads of the world telling you the Market's gonna crash the market is you

know doing whatever you gotta watch and understand

what truly are we um what are we up against right you hear

people losing jobs uh you know Market going 30 backwards on the west coast

and I hear these this from these people that are in my Mastermind groups my small you know accountability groups

you know within our Mastermind but I'll tell you here locally and this

is speaking from a you know an agent I've been a licensed agent since 2012.

broker at my office not ebroker but an associate broker and you know years in

the business you start to see certain Trends okay interest rates go High people freak out for a couple months and

then they're like yeah no big deal we can still buy a house we are still truly within we're dealing

with multiple offer situations right so the market is still reasonably

warm I'm going to say it's happening no you know the key thing is is that you

have to price things appropriately you can't price them 10 20 000 above what

you know the cops say and think you're going to get 20 offers you have to price them appropriately and

if you price them appropriately you will get multiple offers yeah and that's what we're living right

now I mean you know I had you know great example is uh you know a house over in Commerce

okay um you know we happened to uh know the

people that flipped the house and they priced it aggressively like it's at the top of the market right

um but because it's done so well so like they've done a good job yep and now

they've got they actually have a really good Agent out there great pictures stage the property beautifully you know

it's overall a good presentation right it's about marketing right yes

um you know 20 plus people you know through the open house is a two-hour open house

and and next thing you know you got multiple offers appraisal guarantees still so it's still happening in the

market now that's Commerce very desirable area let's go all the way over to Redford

okay I had a deal like like everybody knows or should know that if you are in

the process of getting a mortgage and you're like in underwriting don't change

jobs okay right and then we're talking a little bit more retail right now but

this ties in with wholesalers and it even else flippers right um because it all boils down to being

able to deliver a properly priced product say that ultimately fast right property

um you know you got to be able to make sure that these things are going to sell on the back end yep but without getting too

scattered it's property over in Redford this lady quit her job ends up losing her financing

and we are literally like a week or so from

closing on the deal and she can't so now it's like well let's go find

another buyer and as a listing agent that's what I do so that's we put it on Open Market

literally like two days in we got another offer we had we had plenty of Interest so there's still people looking

from the 150 000 price point all the way up to 300 and um I tell you I really am

looking forward and we're gonna throw a party at this one we're finishing up a product uh property here at the end of

the month here it's over at Farmington Hills like the 11th break area and

um man that is 2700 square foot of colonial goodness man this thing turns

out it's it's looking really good right now so I'm excited to throw in that party and having you guys out there for that one

yeah that'd be awesome um I actually have a buyer who

um I sold two houses to I've sold more than two houses to them but right now he's working on two flips one in

Shelby and one in Farmington and I like he these were complete gut

jobs that he did and he that's one thing he specializes

in is he like rearranges he's a framer and he rearranges everything and I keep

getting these updates through snapchat from him yeah oh my God it's crazy I'm

like dude you're killing it you're killing it that's a that's fun

you're you're a good encourager I see that yeah you know you you hold a um like here's what I can appreciate from

the you know conversation standpoint is that you keep it rolling yeah you know you're not one to talk over anybody

else or anything else you know it's you know so I can I I hope that that compliment comes through well for you I

really appreciate it yeah yeah it does um so so we kind of all want to know we we've

seen the market the way it's going right now everybody I I see there's a lot of

Scare Tactics from Scare Tactics that the media is putting out there and

they're like there's so many gonna be so many foreclosures get ready for it it's gonna crash it's gonna crash

and all I hear with that is as a wholesaler Chang

[Music] and the reason why is because guess what I do I can use all

that as leverage with the sellers when I talk to homeowners now I'm not here to

convince anybody to sell their house not here to convince anybody to say hey this

is what market value is I give people options if they want to take that my option

great as far as working with me if they want to take the you know the option of

going on the MLS I will recommend a good realtor like yourself you know uh but I

give them options and go from there now the reason why I say this is because I

educate them about the market now do I

with everything that's being set out there sometimes I don't even have to educate them now

because it's all over the news and you know and I'm like well you know

we're investors we can't pay retail right you know we got to get at a

discount we gotta be able to make money we got to be able to feed our families uh you know so they understand that

and be like we're gonna go in here and probably spend a good forty fifty thousand

dollars and if you want us to make what five grand I can't do that

you know so I walk through the numbers backwards with my Sellers and if you do

that that's also educating them you're like hey look the one right down the street sold for a hundred grand you know

in order yours needs in order to be up to par for that one your yours is going

to need about 30 to 35 000 worth of work you know

uh you know unfortunately after I pay once I do that I'm gonna have to pay

realtor commissions closing costs things like that you know

so I do the math with them and I'm like you know I'm looking here just to try to make a 10 return 10 to 15 return you

know things like that so I I mean what if what issues have you come across

with sellers coming into this Market a great question

you know as you're walking me through that I you know I cringe a little bit

I'm like uh one of the things that we're working on at the office is anchoring low okay

making sure that we're anchored low and and being able to be profitable because

we don't know if the market slides or if it plateaus or like right now we're seeing it's hot in certain cases but

we have to be prepared for the backslide got to all right and maybe

let's talk about indicators of the backslide here in just a bit all right

but pricing it appropriately to cause it to sell or negotiating the deal up front

that you can actually close on the deal so number one you know you can close on it you can fund the deal you're going to

be able to resell it if you're wholesaling like it's so important to just

you you have to be up front with your sellers it has to be tactful and and

just you know there's I mean it's the whole language of sales I bought a um you know we're buying classes right now

okay you know we got Grant cardone's thing you know it's unbreakable challenge they just did that

so we've got that going on I also bought the sell me this pen Challenge from Jordan Belfort okay that's a really

good one talking about earning trust in the first four seconds of a conversation you know

or over the phone or in person like everybody's got these mental images in their head and if somebody's in a hooded

sweatshirt and you know there's and they talk like they uh you know

don't have a clear voice I mean like people have images so ooh the things to

stack the cards in your favor and set yourself apart from the crowd I mean so that's those are all little just

little things from their sales training but um what we're doing right now is is we're really trying to sharpen our iron

and make sure that our team is going in at the right number right and in you know John Martinez if

you're familiar with that sales training he talks about taken away at the opportunity hey it

doesn't look like you're really you know in a position to actually do this transaction or sell this house right now

you know so I'm just you know not going to insult you with an offer or whatever you know however you need to

word it yeah but I mean there's so many different ways and

I'm telling you right now as the market progresses it's always progressing yep you're going

to have to become so much better you're going to have to become sharper as a wholesaler as a deal finder as a

as only this is like a big struggle like full transparency this is a struggle that we

got going on right now maybe it's mainly you know mostly just in our minds

but being able to identify where you truly need and that's where your team comes into play

right I got a partner very very transparent and he's like hey this is where we're at man that's what we got to

do I'm like I agree yeah our closing percentage our ratio of closed deals

versus appointments is not where it needs to be and you start to identify as you look through your books and you

understand how um you know what your number what your kpis your Camp performance indicates

right your kpis you got to know your business you gotta track your like there's so much that goes into it you

know I'll talk about this stuff for a very very long period of time but um can we shift gears out of that and

get into like where the Market's going and and some of the things to watch for

yeah most definitely um I had one so one question that I

uh Tracy Belinda uh asked me was uh this is the problem we're running into every

time I see a house I'm interested in there are multiple offers over ask my

issue is that uh that plus I'm out of state a uh if I

come to Detroit she's from Miami for a week I look at I'm sure she meant

properties uh do you think I'll have a better chance of obtaining a property I'm a cash buyer looking for 40 to 60

range near Bagley it's searching it's like searching for a unicorn and for

this I will tell you I will tell you Tracy is that

is very hard to find something like that in the Bagley area

in your range that nobody's jumping all over my advice

to you and Dean can have his own advice on that he'll answer the question in just a moment as well but my my

advice is get with not only agents it's an addition to

wholesalers okay now you have them send you the deal

first you look at to see if it meets your criteria if it does you have to act fast and that

way you can view or walk the property okay now you have to fully understand what

your buy box is what you're willing to do as far as the renovation is goes sometimes you in order to get what you

want you need to do a bigger renovation that means a lot less people are going

to be interested in it if you want a turnkey solution that is not the range

you're going to be in not in the Bagley area okay

um just my opinion you can take it for what it's worth it's probably not even worth the two cents that's printed out

so but I'll let Dean ask answer that for you yeah so um just for

perspective sake we just listed a um a property on woodingham in Bagley okay

yep 15 1600 square foot something like that basement garage you know it's a

really nice house it's got the nice Sandstone accents

that it's 100 updating you know it's clean but you

know it still needs some um you know other other areas you may want to look at

yeah and I'm not going to go naming off neighborhoods but I can tell you this if

you go to the uh fair housing um it's it's a HUD user.gov you want to

type that in Randy huduser.gov fair market rents

now you might have to Google that that term so fair market rents uh on the back

of huduser.gov and you put in your local

community or your county rather and that's going to tell if

through you know a couple clubs it's going to show you what the fair market rents are for three bedroom you know one

actually starting at Studios all the way up to four bedroom houses okay gotcha can tell you what the fair

market rent is for that County so Wayne County it's it

it was insane and like for from the 2022 to 2023 numbers

it boosts it up 150 a month roughly I think it was 154 on a three-bedroom

house now uh it was the the girl's name was Tracy

yes Tracy all right so Tracy here's what I would say to you

you have the opportunity to find turkey houses in that range right even

if you're on a little bit higher end you know the 60 000 range the question is

now this if you're paying cash and I'm assuming that you're renting

right what's that yeah yeah uh she's probably either renting them out or doing a flip

so yeah well I mean if you're you're fear flipping I mean geez you know good luck because it's going to be like if

that's limit if your budget is limited 40 to 60. yeah you know you probably would not

recommend if you're gonna get in that those areas and Detroit I'd recommend doing a buy and hold

I don't recommend at this moment with the market with it being so unpredictable in

Detroit I don't recommend flips in Detroit now it's different if you get a smoking

deal in East English Village and things like that but uh yeah she said she wants to

rent and hold them so and some renovation so she said also

perhaps grandma and or Rosedale might be better if you can find a good deal out there

that'd be great now like I said I you know you're probably going on on Market

where there's a ton of Interest look I recommend you

you know like yes I'm a wholesaler and I want you to buy from me but I don't always have the correct inventory so

look at multiple wholesalers that are out there and just make sure you are

asking the wholesaler the right questions that's all okay those right

questions are okay what do I have to pay out of pocket do I have to pay all the closing costs

great yes as long as you know does the seller understand you know the the back

taxes and water bill blight tickets all of that that's coming out of seller's end correct that's in your contract

most wholesalers yes that is correct we are going from a title company correct

yes you're going from a title company okay if anybody comes to you with a wants to

do a quick claim deed run always get title insurance

so that that holds you accountable and that holds the seller accountable okay

and it doesn't matter to the seller because guess what you're paying the title insurance

you're paying the closing costs so

that that's what helps with that aspect um so I always recommend you do that

usually 99.9 of wholesale deals you are paying the closing costs so anybody

who says that oh I didn't know that that's going to happen you're doing a

regular wholesale deal right yes okay most wholesale wholesale deals the buyer

pays closing costs for the seller and the buyer is that right Dean

you know what I actually negotiated a completely different way because all my contracts are written you know for uh in

my favor yep okay no tax prorations and uh also the um

you know what the topic that you're talking about right here I mean this is like yeah no you pay your how can I pay your

taxes right that's what like so the title work we have transfer taxes and and also what

you should probably understand is that like there are some habits that people will get from a negotiation standpoint

where some folks are like well you know so and so is going to pay my closing

costs like you know the the people that are calling the cash buyer numbers they call our website or like pre-programmed

it's nowhere on our website that we're going to be I don't believe it is um that we're going to pay your closing

costs no we can we can't do that but it all boils down

to how we negotiate this deal so you tell me Mr seller like we're

gonna role play that real quick Mr you know Randy what's most important to you somebody takes care of your closing

costs or putting the most amount of money in your pocket that was a trick question

yeah put the most amount of money in your pocket all right so and then the question becomes how can I pay for taxes

I don't know what your situation is with your CPA you go into the CPA and you're

like whatever write-offs you might have okay so then again I'm going to go ahead

and ask you is it fair for me to pay your taxes right I had one wholesale I had one wholesale

deal come through and I didn't mean to interrupt you here sorry about that that came through and said

um you know it was written inside there that uh buyer pays back taxes

I'm like what wholesaler negotiated that you know most of them Texas are

they have a rough idea they didn't and they didn't post it in there at all so

it was it was never posted so not only is you have the price but you have to pay the

back taxes on that and he didn't even provide that information

so you know my this is my Spiel and anybody wants to take it and use it I

have no problem with that my Spiel to the sellers is hey Mr seller you know we

as a company you know we pride ourselves in order to make things go smoother we do provide we do pay the closing costs

for the for you as well as us basically what that entails is is we cover

anything from the title company that the title company charges okay what the the

number that I give you okay is going to be the number to you

there's only three things that's going to be coming out of your that number and

I and I tell them three things I say one your back taxes and insurance right or

your back taxes and all the way up to the closing date we don't know when's the closing as well as

um you know you still own the property they understand that no problem

the second thing is flight tickets uh well what's blight tickets oh you know

those those tickets you get for too long of a grass and the city likes to give out you know those type of tickets oh

yeah I don't got none of those then you don't have to worry and then the third thing is your water bill

oh yeah I know I gotta I know I gotta take care of it great awesome

those are the only three things that would ever come out of your end everything else that number I gave you

whatever number I give you is going to be net to you

now right there I'm up front I'm honest with everything that's going to come out

of their end okay and it says all that in my contract

okay and I tell them everything that I we discussed is going to be in this contract and or we can walk it line by

line for you if you need be but I can just go over over with you you know no

problem I'll send it over to you let's do about 10 minutes and I'll do it we'll do a DocuSign does that work for you

great so you're closing deals over the phone sometimes I do and sometimes I don't so

it all depends on the situation if it's a

um out of state seller or out of state uh yeah out of state seller uh then we

have to do it on the phone you know uh but I'll still go look at the property first get access to it and

so on and so forth okay so yeah that makes sense yep what other questions uh

do you want to address so the thing is is that um what would you

for somebody just getting into we'll go we'll go two different routes okay I'll

say we'll we'll start off with it as an investor someone wanting to do an investment for

buying a hold do Renovations do a Buy and Hold I'm not going to get into flipping right now

just do hey I want to buy a property I want to put some money into it to appreciate and

I want to rent it out okay um where do you think they should start

off if they're going to start off in the Metro Detroit area okay and

what how do you think they should get started in order to do that

then we'll get into then I want to go as a wholesaler kind of the same

questions where should they get started what should they do obviously me as a

wholesaler as well as you as a wholesaler we know a little bit different but I just kind of want to get

to your opinion and let everybody know your opinion on that yeah so I'm the type of guy over here

that uh the attention span can be a little short so I'm writing down these questions yep

and I might need you to help lead me through no problem you'll lead me through so first question is Buy and

Hold investors where do you start um so here's some general guidelines all

right I'm not going to name neighborhoods no not doing it um in fact I'm not even gonna name

cities um okay what you should probably do is

have a look at how much money you have to spend all right whether it's cash or if it's down payment

okay you can look into some things like dscr loans yes okay you've heard of these have you

talked about them on the channel yes we have okay got it so basically if a

property qualifies and it has like for a certain amount of rent

so say for instance uh a thousand dollars a month rent uh it's my understanding that uh the well in some

cases rent can be just you know the property taxes Insurance the pity payment yeah

property you know so that can be up to a thousand

dollars in some cases so there's that talk with the lender that

does dscr loans get a good wholesome explanation on that uh secondly uh

you're going to start looking at uh you'll look at the interest rates and those they're high yep right you're going to see that but

the bottom line is that the numbers have got to work with the whatever calculations you use use a management

company know how much they're going to charge you okay and then build in all

your costs through a spreadsheet I think you can you can find spreadsheets um you know somewhere online some of

these different websites you know these podcasts and somebody you know has a spreadsheet out there for you you can

find one but the thing is is that uh you got to figure out what your overhead is you

got to figure out what your return needs to be all right so that's something you need to do you also need to have a

serious look at if you're not paying cash how much money do you need for a down payment which is typically to 20 to 25

down and then here's the real kicker I don't know of many uh organizations

out there lending institutions that are lending less than 75

000 right now some of them are even a hundred so that means that if you're

a hundred thousand dollar purchase price 25 down 75 000 mortgage makes sense Okay

so you need to talk with lender get somebody on your team somebody that you

can trust that you can just run the numbers through you can look at uh other you know like kiabi

kiabi that used to be lending home I'm not doing anything with these guys but they're yeah

you know anytime you're going through a mortgage process it's tough well what if you can work out seller finance

work out some sub two deals go find it like did you know that you can find

people that have certain interest rates and you can Target them specifically in your marketing

yeah sub two you know subject to the existing mortgage yep now we've done

them yeah they're out there um yeah most definitely

yeah now if you are looking for a lender okay keep in mind this has to be an entity

okay um Jillian I interviewed him on the channel

okay uh last year get a hold of him he does short-term hard money he also

does long term dscr loans okay hard money is basically a dscr loan it's the

same thing a dsdr loan basically goes by the property and not your income okay

so keep that in mind all right you still got to qualify for

it and you still have to have the Reserves and so on and so forth but I

100 percent recommend you do that now one thing I wanted to ask you Dean is

have you seen it where some people are are saying yeah I'll be all cash they do it with hard money and

then they wanna they want to refinance into a long-term

uh mortgage say a Fannie Freddie Mac so on so forth after doing what's called

the Burr strategy okay now one thing that I think it's Fanny or is it Friday

right now that just changed their seasoning period okay

so one of the two Fanny or Freddy I can't remember which they're just

changing their seasoning Geary from six months for a cash out refi

to 12 months yeah I've not heard that one yeah so

it's either Fanny or Freddie Mac I can't remember which and it's actually happening pretty soon

um they're changing it going the seasoning period for from six months to

a year yeah well you know when government entities start doing things like that

you got to ask yourself why but yeah like think that through and I'm

not going to attempt to do it right now because I just you know that's gonna be a lot of dead space you know

um but why why are these guys doing that what's

the question you know I think that's a real nice transition you know to market conditions

people are like okay like Market's gonna crash is the market going to crash

interest rates are High I mean I've seen like again I I mentioned this earlier but you see it firsthand where interest

rates Spike people freak out don't know Skye's falling and then the

market levels out a little bit next thing you know you're in a hot Market well but truly what do we need to watch

what's going to make the market really take a dump well we need what if we have really

really high interest rates you know will people still buy houses yes people will still buy houses

it will I imagine the velocity will slow yes okay

um well what else job loss people stop you know buying buying houses because

they don't have your money I mean that's one one thing they can you know slow down a market right people do

the ability for people to purchase yep okay

um Supply you know that was one thing actually I was just uh looking at the numbers for Rochester Hills and you look

at uh you know 21 2021 versus 2022 and

actually in some cases um you know some very particular neighborhoods the markets

even go backwards yeah um why why do they go backwards I mean

there's a lot of different reasons yeah but when you just I guess in that particular situation I think a lot of it

has to do with the inventory um you know it it just it slows because

of the lack of inventory lack of quality inventory all that stuff so um I mean there's that stuff another one

which ties in nicely with Supply is the Foreclosure numbers right we track these

every week all right we have our VA poll directly from the legal news and I'm telling you the foreclosures

have not spiked and we've got about a thousand in the whole state of Michigan every month

controlling it they're controlling them coming out the thing is is that what

I've seen is because if they go into foreclosure

there's two things that will happen one they'll do some sort of creative

financing okay or some sort of uh loan

modification sure okay um or two they'll sell it out because

the because they got equity in the house okay

um you know so it's kind of really out there now I want to come back to this

Andrew Andrew Christine gave uh the link here is Freddie Mac that came out with

the with the new guidelines and it is actually on

um cash it's effective on cash out uh refinance loans originating after March

7th 2023. yeah it's you know it's crazy but how

that how does that affect well as you as a wholesaler how does that affect you

you it doesn't affect you as a wholesaler but you know who does affect your buyers

so you have to know all the rules okay as a as a wholesaler so you know what

strategies they're using you know it's going to knock some of those buyers out of content contending

because they're not going to be able to cash out refi

they're not going to be able to get their money back you know now they can go different routes of course

you know but at the same point they're not going to hit the better rates from the the

Freddie Mac you know they can go Fanny for now but how soon is Fanny gonna uh

gonna change over I'm sure they're following suit you know they're they're very similar

entities exactly so um now so what kind of and I didn't mean

to kind of side track here um going back to what you're saying you know

with every area is different you look at

California you know they are their percentages in are dropping Like It's

Hot you versus in the Metro Detroit area we're not dropping as much I'm not

saying we're not dropping but our values are not dropping as bad

as out there in California there what's the reasoning why our job market the

labor market we still need people here okay out there

most of the the workers out there still need to be are remote so they can live

anywhere so what are they going to do we're gonna move somewhere else and still keep our

job you know or they got paid off from the big

Tech and moved to a different place and work for another worked at home place

you never know you know so look at all these options

um and kind of go from there but what would you so what areas would you recommend like

would you recommend with arvs higher

like uh more luxury end would you re you know like kind of where where would you recommend somebody

starting as far as doing a buy and hold Buy and Hold

I would I want to make sure that the numbers work like that that's that's the bottom line

all right make sure that there's industry around you know Amazon's hot right but you understand that if you're

looking at 150 000 house and it just meets the one percent rule

uh I mean if you really boil the numbers

down it might not work okay so now why do we go back and bring

up the HUD user.gov site okay so you can look at your numbers all

right so now let's go back to Tracy's example I got fifty thousand dollars to spend

okay fifty thousand dollars All In and I can get

thirteen to fourteen hundred dollars a month rent on that thing if it's a three

bedroom yep he's if if the vouchers will pay fifteen hundred

which is what it says it was like 1377 was what it was last year

so I had 150 you know it's insane um but if you just take a

1300 right and then you divide that into your cost

what's your return and well if you just double it fifty thousand dollar house two percent rule the hundred thousand

dollar purchase so you're almost like 2.3 like the numbers have really appear to be good

well and at that point you just make sure that you're buying the right house and

you know you have inspected your boots on the ground especially if you're buying from out of state you know so

yeah focus on your cash flow the area um you know that's a conversation for

your property managers your property manager gonna gonna do business in these areas

to decide do you want appreciation okay one of the things that you learned

early from Robert Kiyosaki is that listen if you know appreciation happens that's icy

on the cake right goodbye cash flow is King and especially in this

market where we're at you know you say you buy too high okay

say you know what I overpay okay I overpay

and I get into a property but guess what it's given me 500 a month in cash

flow after capex after this after that it's

giving me five then guess what who says you're overpaying okay who

cares you're getting 500 a month right that's making you money while

you're sleeping okay as long as you're putting money aside for your Capital expenditures your

maintenance your vacancy your all of that and you're still cash flowing

okay now I the numbers that most people go by is

right around 300 a month okay it for the cash flow after they

take all their expenses out all right that's a good deal and realistically

realistically where you're going to get that done is you're going to get that done in the city yeah

and thank you Andrew Castine by the way who gave me the link this is the link on

the screen right now uh for what you were talking about the HUD user.gov yeah

there you go that's it this is the link right here thank you Andrew for putting in work and and posting the link I

really appreciate it really appreciate it so um and I think Tracy that's why you

wanted to do in Detroit is because of that and you were doing the the lower percentages but keep in mind

you know like I would probably go a little bit higher in that and see if I

can get myself into a duplex that way you can get you know I get higher cash flow

you know so that's up to you yeah yeah I've been through the um MLS

so I'm an agent I've been an agent for many years right um geez

you're you're looking about fifty thousand dollars a door if you're TurnKey at least yep you know minimum

sometimes you can find these four flexes you know and I'm telling you that that's

our first property ever was a duplex cash flow and duplex and uh I should have bought more

yeah but we bought it right the numbers worked you know 1200 bucks a month rent at that particular point in time was an

eighty thousand dollar purchase yep now present-day I mean I think

not going to tell you how much it makes but uh we'll never sell that thing yeah and and

that's the good thing about being Buy and Hold investor is you don't have to sell

and you know I'm starting off a wholesale wholesaling is not an end-all

be-all game and anybody who tells you it is I'm sorry they're wrong

I work it's work it's constant you're trading one job for another what I'm using

wholesaling for is one bringing this community together two I'm going to eventually own my own

rentals okay and three it allows me the money that

I'm bringing in from wholesaling to get my own home renovated my personal home

so hey and by doing that I'm learning it I've learned so much by

doing my own home renovation it's made me a better wholesaler I'm able to price out Renovations a lot better

and actually be you know with my buyers and and talk with them and and get hey

yeah you're pretty close on the pricing you know in before I started that I was way off

and I realized that so my all always my recommendation if

you're just starting out if you think you're gonna spend twenty thousand dollars for a renovation plan on

spending 40. that's just it's the reason if you don't

use that plan on spending 40 and if you don't use it great mistakes are gonna happen

you know so um you know that that's kind of that's

that's my that's my two cents on that so my question to you Dean is is as a

wholesaler where do you recommend somebody starts as a wholesaler

uh help me out with the question a little bit more like what like so it started as a wholesaler simply starting

out as a new wholesaler what do you recommend where do you

recommend what areas do you recommend them that that I'm starting out what you know reaching out one do you recommend

them reaching out on Market and or off Market that's kind of one

portion and then two do you recommend them doing inside Detroit or the suburbs

you know good uh yeah no thanks for the question um look let me take a little side step and

uh and tell you a story that'll help with this okay

um they always say this but like why why did Jesus teach you parables

I don't know Jesus taught in in stories so you would remember

yep okay so let's think about this for a moment close your mind your eyes and imagine

this I get these phone calls from my website right by

949-1224 number right hey do you buy houses in Detroit like this is these are

the regular phone calls I get and it's not just me it's anybody who has pay-per-click yep

you know who's calling Hey do you buy houses in Detroit yeah what do you got

talk to me right are you the person on title no I've got this property under

contract like it's the way it goes most of the time and I'm not knocking these people but

what I'm telling you is that there's a uh there's a strategy that these people are

following that is uh it's not producing fruit

so now you got these people that have uh like we had a joke about this on the way back from Nashville

um one guy uh Mike Aziz you know I'm in the community oh yeah he's like I get the

phone call from this house that's been on the market for like 390 days right it's on the market on Market

properties I'm not seeing don't go after on Market properties if you do you need to make it you need to have a good

genuine conversation with these people okay and know what you're doing because you're dealing with agents on the other

end of the line understand that and if you come at me like you know you say you want to put my house under contract okay

well let's bring your deposit you know bring your deposit let's get an actual and I'm not going to like to

wholesale that thing I'm not going to let you I'm not gonna go get your real estate license you want to do this stuff right you want to be a buyer's agent

which is effective about what you're doing you want to secure property then go ahead and you know and I'll settle

down here but but understand that these people are calling number one

they don't know how to analyze the deal they're excited to get a contract

but but this 390-day house is like on the market for 90 000 and the guys got

it under contract for 85. oh I'll give you 85 seller's agent seller's agents like huh look at this

schmuck you know 85 000 it is now this guy calls us or calls Mike in this example and

he's like oh yeah it's a great house and you know it just needs a little bit he's got all the pictures that are on the on you know Zillow yeah because that's what

he's using is a cop tool and you know sends them on over or you know

he tells a little bit about the property and uh tells Mike that he can get himself a real good deal at 90 000 which

is exactly the price it's at on the MLS what are you doing all right now I'm not

naming names right yeah no no I like the bad mouth anybody but there's people out there that are

teaching this and they're producing students that are coming into our Market in

producing junk yes okay you're going online on Market okay understand that

that market is like there's a lot of people doing it right now okay we write 200 letter of intents a month at least

okay that means that I'm sending you an agent that has a house on the market for

over 30 days or whatever it is whatever my you know flavor of the week is 30 or

40 days if you're on the market you're getting a letter of intent from us it says we'll buy it land contract we'll

buy it you know seller finance or we'll buy it cash what do you want to do Mr seller okay so we get responses from

that it's about the same ascending direct mail I'll be honest with you yep now there's ways that you can increase

that frequency that callback frequency you can reach out to them send them a text

you know find this is a relationship business which boils right back to the original reason why we're even doing

this call yeah because this is a community one hurray yep you understand that you

can't just walk in and just call it the way it is you know without building a relationship with these

sellers so so ask refresh the question one more time for the audience

because you're asking about how do we get started right yeah so wholesalers where do you recommend they start you

know one was uh the first part was off Market or on market and Detroit or

suburbs well I can tell you that if I could find a good legitimate deal in the suburbs

right now I'd scoop it up yep but if I can find a good legitimate deal

like here's here's what's coming out of Detroit right now my Webley line just called and

it's got a tenant that's paying 400 a month and they want like 15 grand for this house and it's in Highland Park

right right now I don't I don't know that I want that house it's probably not

in my Bible right all right but will I put it under contract and then try to sell it to somebody else you go through

the Ria site right now the listed properties how many of them are are Detroit

majority at least 90 percent perfectly understand that

if if you if you feel good just to get a conscience don't fake yourself out that's what I'm saying don't figure

yourself out you're gonna put in the work go out to the suburbs go out to the

places drive for dollars yes okay go to the deal machine app go to this new one

called backflip there's no like they're just getting start

um but but try out backflip app and you know for Real Estate Investors they have some financing tags on there as well

um but as you're as you're going through neighborhoods find a distressed property

find a property that maybe you know car has it cars on blocks the driveway isn't

shoveled the grass isn't cut if you decide the distress broken out windows bad roof

okay a bad roof with a tarp they get extra bonus points for that one you know

why because they got up there they already told you once that they you know number one the roof is bad right well

that's indicator number one they couldn't afford to replace it otherwise it would be replaced and this stands the reason right yep the tarp is over it

okay there's our attempt to fix it but it's a key indicator that you probably

don't have the money to I mean sure there's exceptions to everything but yeah it's got a tarp that's getting a

letter for me I'm gonna do that right we'll knock on the door if you have to bandit signs you know it pulls from our

Bandit sites I got 500 or excuse me um I get paid I pay 500 bucks for a

hundred signs installed out in the community and you know it's a real kicker

because I had signs out in the Dearborn Heights area that were uh they're out

there yellow signs you guys driving up and down uh Warren Road let's see my science [Music]

um I did I started to get I got a huge influx of calls once the snow hit the

big snowstorm then it's like yellow stood out for me yeah I was like yeah

let's do it man yeah Place those banded signs within the neighborhoods yeah that's the busy intersections but inside

the neighborhoods where people see them now keep in mind I gotta add to that a

caveat what is it check the city regulations and what happens now not all

all the cities like if you try to do that in Sterling Heights or like some of the higher in Farmington Hills and

higher end neighborhoods they're they're going to rip those down or they're going to try to try to come

after you for and find you for those times yeah once you spend that money for those signs consider them gone

exactly yeah and the inspectors will call you and they'll let you know which ones uh which cities are not okay

because I don't know I'm not you know but but doesn't don't let that stop you that's the key thing here

trial and error okay you spend a little bit of money on on marketing

see what happens if it works great put more money into it

try something else if it works put more money into it if it doesn't move on to the next thing you know key

I mean it's it's just a trial and error I would I would challenge that I would challenge that statement

so you you got to look at it improve it over time mail works over time all right

uh you know back in 2012 when I started in the business literally I could spend

300 on my yellow letters my handwritten yellow letters and I literally it got a 10 plus

response rate yeah so for 300 letters

I would get I remember this one uh statistic 23 calls

yeah but then my inability to close which is the reason why you need to stay educated and even partner up with

somebody who is a able-bodied closer

I got one deal out of that one deal out of that 300 which sounds really really

good and I'd love to do that nowadays but there was 23 leads and I know I left money on the table because I didn't know

how to to structure anything creatively if it didn't fit my box of 70 minus

repair yeah I forgot about it now I I have a

caveat I'm not sitting here saying try try one strategy and then if it if it

doesn't work go to a different strategy what I'm saying is just try one strategy

and try multiples of that strategy okay what I mean by that is this you brought

up mailers okay great let's do this trial Section

on mailers okay on this paper okay that's not working

let's try a different avenue of reaching out to them we're still doing mailers but we're

flipping it up where we're trying to make the paper a little bit better or we're going to postcards instead of full

out letters or however there's UNT in every different category there's umpteen

amount of different things you can do to try you know not everything's going to work

for you and you may come say okay this is not working and then a year later want to come back

to it and try it again with your newfound knowledge of what you've learned over that year yep you know it's

always changing most definitely um I always recommend this this is my

aspect for wholesalers and correct me if I'm wrong if whatever

you think Dean let me know because you know you're you're a realtor so I reckon

you know if you are going for something that's on market

and you're trying to wholesale it you need to do your numbers correctly so

you have your arv and even if you say oh yeah my arv is

uh you know we'll go 200 000 okay 70 of

that is uh 140. you know about 140 I I

think it's going to be about 40 Grand worth of work we'll we'll get under contract for a hundred grand

okay and then we'll try to sell it for 110. or no sorry

we'll get under contract for 90 grand we'll try to sell it for a hundred okay

and there's a third piece that you have to look at

and now the people that are that you like you said that are training oh if as

long as it works your numbers then it shouldn't matter right no okay the buyers here are Savvy they will

look on the MOs okay they still need to feel like they get a deal

okay it's a it's still a human being on the other side

okay they still need to feel like they get a deal and so essentially what's going to

happen is say it's on you got locked up for 90. you're trying to sell it for a

hundred but the house is is literally on the market for we'll say 105 000.

okay that is not a deal it's been on the market for

90 plus days okay there's a reason for that

okay now now you have to go back and you have to look at your renovation costs

are you off on your renovation costs all right is there some sort of structural Foundation that is wrong

the reason why they're not getting multiple offers or they're not getting offers

okay you have to look at all of that but then you have to look at okay

now if it's on market for 105 and I'm sitting here trying to sell it for 75 or

say 70 that's a different story 100 percent um

okay you I would definitely do that all day long

but you have to look at that that's that's your other aspect you have to

look at you have to make sure that the buyer make sure he thinks he's

getting a deal well that's the sales process as well I mean it's it's communication so a lot of

folks it's the MLS effect you know you put a sign in the yard real estate agents will do that and they don't never

do any other additional promotion like you get one property it's this is

talking dispositions right now yes you have one property and you got to move that thing like it's

your responsibility to the seller now to move the thing right so go exhaust all your your

resources build relationships build your buyers list network with your community you know talk with people and

and don't just expect to just put it out there on an email very very passively

to be aggressive in this market right now go find the people no ask around ask

Randy hey who would buy this type of a deal hey you know what send it over to

Dean and he's got Deep Pockets to buy anything most numbers make sense right that

person makes sense but but that's your training you have to take responsibility for us know your business right and then

you can move these deals um but yeah no I mean that's a that's a good thing to bring up right there for

sure and one thing that I always recommend is talk to your buyers now every everybody

says what do I need to get the buyers first or the sellers okay 100 and every there's other people out

there that disagree with me find the deal first

who would disagree with that there I see so many people out there that do and the

reason I say that is if you have the deal you can always JV with somebody who has

the buyer that's it

you know so for instance I have buyers I listen to my buyers so instead of me saying

hey I'll take the deal from you take you straight to the my buyer and get the feedback from them no I know what

they're going to say okay so I can say hey this is probably

not going to be a deal or we need to get this a little bit lower or what I can do

is is I'll put it out there I'll see what feedback I get that way we can get a solid offer before

we go back for a price reduction and I don't ever like to go back for a

price reduction and Hope what I do is I take it to I'll put it

out there or I'll go to a select a few buyers and say hey

what would you pay for this and give me the reasons why

okay okay great if we can make that number work would you be interested in closing in a

week two weeks whatever great it's a great closer you know that's how I do it that's a

good close yeah if I could do this would you do that

exactly that's how we got our last uh you know uh seller finance deal it was a

lot of money too saved us 15 grand you know just for asking the question hey would you be willing to do this would

you be open-minded correct one of the things that I'm let me let me um as we wrap up here let me

uh give a couple things that uh you know I'm working on with my team asking questions like yeah one question

how much do you want for the house or yeah I mean we use that one right yeah

so like let's role play this real quick Randy like how so Randy how much are you looking to get for uh you know how much

are you looking to get for your house uh you know I need to get the maximum amount of possible man you know give me

the night what's your best offer you know give me your best offer okay so

that's my question number one right how much do you want to get for how much do you want for this house

Mr seller how much were you hoping to walk away with out of this transaction

gotcha okay multiple layers right oh yeah right

which I I know I got a little one you know I'm hoping to at least walk away with like 50 Grand you know so you know

all right cool so so 50 Grand that you're telling me that you have a

mortgage on this house how much is the mortgage uh you know it's probably about a hundred grand you know 100 okay so so

what you're telling me is you need about a hundred and fifty thousand dollars to walk away from this deal to make

everything whole yeah yeah you know

all right cool just out of curiosity how much is your monthly payment uh you know I got the mortgage by 20

years ago you know um I I think I think my mortgage about like you know

uh you know 700 a month okay you know so

okay so if we were able to work out something creatively could I treat you as the bank and pay you a little bit

what does that mean well there's a lot of things let's get into it you know let's not get into whole whole stretches

yeah but the the point was this right you've got one question is what I'm

training my team on one question whatever it is find two other ways to ask that same

question that's not you know different ways right and then do it again it's a

training exercise and that's going to open your brain and I'm telling you the girl that we're training uh right now

and she's been with us for a while it's really really good um she's coming up with some pretty creative stuff

which really is and uh you know I I'm thankful for that because that's not acceptance and she's she's working

through it so um and it's fun sales is fun right we're just getting people what they need that's it

and and that kind of brings it back and it kind of ties it all together is we

are not here to convince anybody to sell their house we are here to offer

Solutions to their problems okay

that's it you know um I have one for instance I have one

seller that she literally lost her home to a foreclosure and when her it it went

to auction they're still living in there they have the Redemption period right now

the Redemption period is up March 6th and literally if I would have called her

then I don't know what she would have done because she doesn't have time to go and

sell it on the whole Market you know so I'm working with her

and because I don't know that very well and it's my first time ever dealing with a Redemption period guess what I'm doing

I'm jving with somebody who does know it yeah and I'm good being with me you

already got the deal moved what's that is it in The Burbs it's in the verbs yes all right let's

connect on that yeah it's in Royal Oak okay um but I'm I'm working with

another another wholesaler who knows that like the back of his hand you actually know the other

wholesaler so um and so I'm working with him to try to

get this basically locked up and going through this process

of the process yeah whether it works or not I don't know but at least I'm going to learn something through this process

did the numbers work on this one uh I I mean it's not a slam dunk but

they will work as long as we're all on the same page I don't have it on my contract yet so that's why I don't want

to put it out there yet so uh so good but it's in the works and now with that

being said I do have a property in Detroit that I am jving with with Todd

Chun okay um I just posted it on our group okay

it's 865 Collingwood Street it would be a great flip and

it comes with five vacant Lots two of them next to them and three of them behind

in my area and in my opinion take the the property that is there

fix it up it's a great flip because it's literally uh great comps in the area

okay it would be a great flip or even a Buy and Hold it's four bedroom home with

a a third floor attic unfinished okay and I then you take there's three lots

directly behind it take like a lot and a half or whatever put a

four Plex up or put two four plexes up and take up

each each lot you know and then make a parking lot in between them

you know it's that that's just my opinion though

yeah yeah so so it's and we're selling it for 64.9

it's a great deal okay on Collingwood huh I've heard that that street name before

I wonder where it's uh um you know it is on the east side

um but it's a great like I said it's a great property so great area too so it's

um and I did put the flyer up on uh my

Facebook group okay okay so check it out it the address again is

864 or 865 Collinwood Street write it down

865 Collingwood uh

where did I put that

one second

there we go uh and it yeah it's the 48202 area code

Okay so and let's see if I can

what are you gonna do you're gonna share it on the screen here yep I'm gonna share it on the screen this is

this is the property here and it's a great property the the lady

has lived in it for quite a few years raised her children in it on you know

Windows could be replaced uh you know things like that it's a great property

that has some great old world charm things like that you know 100 percent worth the 64.9 that

that we have it out there for okay um you know plus the five lots and like

I said it's two right next to him and she's taking care of the watch herself so

you know 100 recommend anybody who has contact go ahead and contact Todd uh

the numbers right right here at the bottom okay um and you can always DM me as well

um but me and Todd are javine on this so you know go ahead and contact him just let him know you found out from me all

right and go from there and we'll set you up for a walk through or anything like that

so we do have full photos and uh if you need full photos we'll send you a link

nice awesome so kind of go from there I like I said I

I think that's a great property and um you know but I just want to get my my

little pitch in there since we just got under contract let me go get my bowmen

yeah right so um so so what else is on your mind man

you got any other questions you want to uh go yeah so you know as we wrap this up you know we're coming to the hour and

a half mark I usually kind of like to leave it right around there um kind of you know what I'm at what I'm

curious about because there's a lot of new people out there um you know

what is as somebody who's new there is a lot of

analyzation and learning and going through there what is the one thing that

that you think people should do as new people

okay as a new wholesaler uh Buy and Hold investor

flipper whatever what do you think they should you that

they need to do to get out of analysis paralysis

[Music]

so the only thing that's going to fix that is action right

you know one of the things you got to understand is that uh you can only educate so much

right again going back to Rich Dad Poor Dad very first complex we bought very first property

if the numbers make sense you do the deal okay like like you're truly if this is what you're doing like real estate

you're investing in real estate okay you're not just playing real estate

the numbers work you do the deal you figure out a way to get the money together and you do the deal

yep that's it they'll screw around because life

you know you look back at the years and it's like yeah I should have done that yeah

and now you're in this position because you didn't

okay paralysis is a book out there a magic of thinking big in there it talks

about a procrastination being a failure disease that yes you know they'll screw around

stop screwing around we'll get the job done and I I agree with that 100

take action in whatever it is whether that be you're taking action

with somebody who knows what they're doing so that you can keep learning I always recommend that but

yes you need to educate yourself in the beginning

I know how I learn myself is I have I educate myself then I have to do it if I

don't do it that education it just kind of Fizzles away unfortunately

I hate to say it but unless I actually put what I learned into action

it does not actually sink in

that's true so with that you know

every deal that you do you're going to come across mistake after mistake if you're

going to have to learn how to Pivot how to go around it how to look for things in the past so you can counteract all of

that okay things like that but with all that being said

I real I 100 agree with you um we need again

the March 8th is going to be a big

big event and I recommend anybody who is out there it's going to be only 25 bucks

at the door check it out and uh we'll post the details in the

Facebook group okay on February 22nd at 6 30

is Keller Williams right yep that's killer Williams office over Nova yep

over and all right yep we'll post that event in in the Facebook group as well

okay check it out when I say networking this is where you

these are places where you go you network you get with like-minded people and you start working with them

and you start learning from them and that way you can possibly do deals with them and so on and so forth okay

now with all that being said I hope to see almost everyone in here there and we'll

go from there but Dean thank you I really appreciate it only last thing I

have is if anybody wants to get a hold of you to ask you either any questions to work

with you to send you deals whatever the case may be how do they get a hold of

you well you can go ahead and check out our YouTube Right 3D Property Solutions we've got that if you want to put my

number up on the screen by all means uh I'll give it to you it's a 248 all right two four eight yep nine four

zero one zero nine nine nine

uh you can check out our website you know uh dddhomebuyers.com

find us there uh also one last thing uh

I've got a uh an episode I'm gonna be on an episode of House Hunters you guys heard of that show

oh yes 10 days from now

at 10 o'clock on HGTV I've got uh I'll be on TV look at me

that's awesome so do they do the Detroit area is that why yeah oh I did not know

that yeah I'm actually working on on another client at the moment um to to get one of my other clients on

there so okay it's uh that's fun you know get on TV you know

so if you want to get a hold of Dean here's his number down right here okay

check him out give him a call even if you just want him to list your property he is a licensed agent I don't know if

he wants to do that if he doesn't want to list it I'm sure he has other agents that he works with that he'll recommend

as well okay uh depends on how busy this man's very busy so sometimes I can't

even get my phone you know but sometimes

you know on a whim he came on here he he showed up for me great guy so I'm 100

recommend him check him out um and all he does is add value to

everybody he surrounds himself with so I recommend him his company his business I

you know check us out we'll post all the events in the Facebook group Metro Detroit off-market Real Estate Group

also if you are not subscribed subscribe to the YouTube channel at randystedwell

on YouTube subscribe subscribe subscribe hit that

like button as much as possible okay we need the YouTube algorithm to recommend

us all right we do these talks every single week bring somebody different every Monday at

8pm all right so there you go Captain stability over here that's what I'm trying to be I am

yeah so good work guys have a great night we're gonna end this okay gain

hold on for a moment and and I'll I'll I'll get right back to you but everyone

out there please please join us for these events that are coming

up and hit the Subscribe button hit the like

button go over my YouTube channel if you're watching this on the Facebook group go over my YouTube channel subscribe like all of it please do next

time watch from the YouTube channel to help me get that algorithm going uh we

are at 2600 members okay in the Facebook group we are climbing and growing every

single day we are bringing buyers every single day hit us in there you guys have

a great night have a great evening we will see you next week 8 P.M on Monday

just like always let's all do deals together have a great one

Real Estate Talk w/ Randy Stedwell Episode #4 | Nick Bastianelli about AirBnB & state of the market →

On Episode #4 of Real Estate Talk w/ Randy Stedwell we are bringing on Nick Bastianelli, we will be talking about the state of the market and his business on the Short term Rental space like Air BnB.

Nick Bastianelli is a real estate broker and investor. He is a 2 time ICON award recipient and founder of @TheBastianelliTeam at eXp Realty. He has personally sold over 50mm in real estate since entering the industry 4.5 years ago. He also has amassed a portfolio of 20 STR since he began investing in March 2022 with many more units under contract to purchase and a goal to have 100 units by 7/31 of this year.

@NickBastianelli and @TheBastianelliTeam on IG, FB, TIkTok and YouTube

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/ @randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

Hey everyone how's it going sorry we're running a little bit late here had a few

issues that I had to get resolved I'm just getting set up over here all right let's get this here volume down Okay so

welcome to episode four of real estate talk with Randy Stedwell and happy to bring you guys and announce this guy named Nick Bastianelli awesome guy I actually met him for the very first time a few weeks ago at his event and I asked him to come on

here to talk about I everything that we're about to talk about he's a agent

you know he he does short-term rentals he does some long-term rentals I

believe uh we're gonna get into all of that and what he thinks the state of the market is and where we should be going

so uh without further A do I want to bring up Nick Bastianelli how you doing

Nick what's up Randy doing great man how are you I'm doing awesome by the way

your event was awesome so thanks I appreciate it really really happy to be

there so but yeah so tell tell me Tell the

audience a little bit more about you and uh so I know we had a

little bit of a bio for you and we got that in the description if you want to read that by all means by just a little

just a little brief summary of who you are what you do and kind of go from there yeah so I'm Nick Bastille I'm a

local real estate broker here in southeast Michigan so I live in Northville grew up in Novi

I own my wife and I opened gyms uh when we're pretty young so as 23

she was 19 I think we made the LLC and she turned 20 reopened so anyway it's been an entrepreneurial my whole life uh

ran those jams was totally not planning on getting in real estate at all um I just had a mentor uh a mentor kind

of in life and in business um for a long time who owned a boutique Brokerage in downtown Rochester

um I had a lot of respect for him and um he had a you know a great I think he

still does I'm sure he still does yeah um a life that that I admired um and so yeah he owned that brokerage

and he asked me to come work for him and I was pretty hesitant this conversation was it went on for a long period of time

uh and then he offered to basically like cover the cost I think he covered the cost of my course for sure and maybe the

test as well and so I figured out let's go for it yeah so that was cool so I got into real estate and then

that snowballed we ended up selling our gyms or prepping our games for sale pretty quickly selling them I went full

time in real estate stacked as much cash as I could on the side and then started buying a bunch of

short-term rentals within the last like 10 months so yeah that's awesome that's

awesome so uh that actually kind of you know talks a little bit about how you

got into real estate as well so you know what were your fears about

getting into real estate so did you have any oh yeah I know I totally did I was super

apprehensive um the gyms were super fulfilling but they just we they weren't like super

financially rewarding for us I started really young we didn't know I think about it all the time I wonder

how I would do in this business nowadays the only one I know now but yeah I was pretty apprehensive to

get in real estate because I was like I really enjoyed the stuff we were doing

and you know although I'm very entrepreneurial um I have a lot of friends who have

really wonderful jobs and and so I thought man I'm gonna go from running

these games and being fully responsible for my income and benefits and health care to jumping into a brand new

industry real estate where it's 100 commission and I still got to do my health care and benefits so my kids were

really young I was super apprehensive dude I I really didn't I did not pay any

attention real estate for like the first at least five months that I had a license and then a good one yeah I did I

literally did nothing at all and then I had a good buddy of mine belonging one over again who asked me to help him buy

his first house uh so I'm very grateful that Nick trusted me to do that and that

was really it so that first option yeah that was super apprehensive dude yeah yeah so that's awesome because the thing

is is that there's a lot of newbies out there a lot of newbies in this group that we do and we reach out that you

know they're they're afraid to make that leap and I'm not sitting here saying quit your job and and go get into real

estate no I'm not saying that do everything methodically like I fully believe in you know

testing things to make sure that they work before you jump full-heartedly in it you know

that's me that's my methodical brain going

and so I always believe in that but dude I'm gonna tell you if if I had a

like I have a wife but if I had kids as well and little ones and they're there

so do that oh my God I mean I do dude

it's Gotta helping I mean we were like totally not we were not making any money so like I did have a very long flow

level of success I needed to achieve in order to be doing better than I was financially before I am the big thing

for us is because it was so we were it was very fulfilling it was so nice for our kids to be in a gym every day like

building their own you know like whatever obstacle course and stuff so yeah yeah it was it was a risk man I get

I'm in the same boat as you right like you know a lot of people call IM people every week about becoming a real estate

agent and I'm really transparent with them about you know what it takes to be successful in the industry and I

understand that people have families and they can't you know all just like go all in on day one so you know you gotta do

what you gotta do but it's been one I mean it literally is absolutely changed

our lives for the better so I definitely think it's worth a shot and and that's the great thing because

the thing is is that you gotta at least love what you're doing if you don't like what you're doing there's no point of

doing it okay yeah so great especially real estate right it's challenging we have to have tough

conversations there's a good amount of money involved it's not always comfortable there's a lot of acting

which must be taken on a very regular basis in order to be successful so yeah you gotta like it somewhat for sure exactly no 100 so with that being said

like what was your so you said your your first five months that you you basically

made nothing right and it wasn't totally yeah so it wasn't until you know you got

your first now after after you got your first paycheck from doing those first

deals like how did that feel incredible that was it man that was the that was the light not getting the

license I got licensed in June June something like June 18th of 2018 2018.

and then my first sale closed like I don't remember November 30th or something so it was actually like five

and a half months wow okay yeah so I don't know when we started seeing houses

that was probably a month or two but anyways yeah really transparently and I was

on a 50 50 split with a big cap you know for those people who are familiar with like the sale side

and I still showed up to close I think the house was 224 or something like that I showed up to close I was

only getting paid 50 of it and I still looked at that and thought holy

dude right this is why I mean I worked really hard for that very hard for that

first deal but even so I was making 400 a week transitioning to getting a

paycheck for a couple Grand and it's just like this is it we gotta do it we gotta go all in

yeah and that's weird you're only making 400 a week and you own the gyms yeah I owned two of them uh yeah

honestly probably my wife and I were each making 400 a week I think our best

year we made like 52 combined or something wow okay it was not a lot like people thought we were like owning props

again and you know my my whole life has been very important to me to be good and like

prioritize relationships over right I always prioritize relationships over cash or income and so we had staff who

fully operated our one location in Ferndale and they were awesome one on a salary and then another woman who's

awesome you know just per class like 10.99 right and then our other gym had full staff too so you know we weren't

like coaching all day but yeah I mean I think that would probably is going to be mind-blowing first if anybody knows me

that was my best year yeah so that was uh so your first deal I

mean that's more sort of a proof of concept than anything else it really didn't matter about the money it was

more even even though it was a lot of money for you because it was cool yeah but hey I was more about proof of I'm on

the right track right yes totally yeah it was wild man it was very cool so

when did you get into rentals and figure out the short term versus the long term

versus the Midterm and so on yeah so I we had racked up a pretty good

amount of personal debt from running like building out those games and stuff and so when I got into real estate I got

that first paycheck and thought okay there's a lot of potential here so my wife and I started talking about closing down those like prepping the gyms for

sale really like getting them off the books so that I can get into real estate full-time as quickly as possible but

that was a I mean I guess it's probably important for your audience in particular that took time right so I was running

two gyms with two infants I had to prep them slowly taper off

and then man I totally lost my train I thought there what was the thing you used to ask

me oh how did I get in rentals okay so what I knew is like okay I have this debt which I have to take care of and be

a responsible adult right this is like dragging me and my family down so what I did is I decided to go all in and focus

on one thing which was real estate sales and real estate sales only right I know this thing just paid me three thousand

dollars and that is the biggest paycheck I've ever seen other than whatever selling it probably yeah or something

and so I thought okay I'm only focusing on real estate sales and I'm pretty entrepreneurial so it's easy it

was really easy at that point in my life to have like shiny abject syndrome but all I did is think every day I'm only

focusing on real estate sales this is paying me and it doesn't cost me anything other than time and effort

which is all I really have been so I worked really hard and I started

off by paying myself like really low I can't remember what was I think I started by taking every paycheck 20 to

debt 20 to Investments 20 to taxes

and then maybe I probably started living off 40 expenses right okay and then

right so I'm saving oh and then 20 yeah like pre-saving for Investments essentially yeah yeah so whatever I

probably start at 40 I worked my way down to 20 and so our family you know I'm paying off 20 dad every time

pre-saving for taxes all these things are getting taken care of my life is not

changing that much in the way that I live and I'm starting to like accumulate some cash right that's going down right

going up and I start I knew from the beginning that real estate investment was wildly interesting to me so I I

thought that was the end game like I thought this is where you really want to go if you want to get wealthy long term

right I knew that I was in the rap race and like on the hamster wheel of commissions and I couldn't do it forever

so I read every single free ebook that Bigger Pockets had I bought a ton of

their books I listened to every freaking podcast they had all day and really

all I was doing is just stacking money and learning as much as I could for the day where I felt like I had

gotten rid of enough debt you know that I was personally comfortable participating in investment

real estate so how long did that take you from when

okay we'll we'll go with some you got your first deal because it was five

months after yeah yep so until you started like okay I'm

gonna buy this house for a short-term rental okay so the first investment thing I did

I did like live-in flips like I'd buy them and fix them up I did my first flip that I didn't live in

I think that we closed on that December of 2021 that was like a test run with my business partner who I do all my

investment stuff with Austin cook great guy okay I should have him on here he's awesome

and then we bought our first home in Traverse City I think we closed March 31st 2022 so

that was 10 months ago almost exactly I think okay yep

and so obviously it's gone fast because now we have 20. yeah so March 31st that person had 60

days occupancy so we had to wait we got occupancy whatever march to April April to May so maybe June 1st or something we

were up there like just doing stuff like building out the furniture we saw a second one like in the same subdivision

go up for sale we went there on our lunch break from building the furniture gave him a crappy offer we got really

lucky because it was an out-of-state investor from Florida who needed to 1031

she owned a single family house it was a newer construction single family and she's trying to get into a big

commercial deal so she needed her Cash Quick yeah so she just she didn't even counter

she just accepted our offer in 2021 during all the crazy bid Wars 25

Panda asked we were like what just happened dude so that was that surely

that was that that was in the Traverse City area you said right yeah at both we're in Traverse City

I was just learning all day honestly legitimately I was learning all the

stuff that people were doing on Tick Tock I was trying to watch people who were in short-term rental space and pieced together the software they used

because I know I'm I'm very active in real estate sales and I thought there's no way I can add

another job to my life I'm still thinking I need to focus on what pays me so I need as much software and systems

in place to make this easier so I just started like taking like oh I like this person's idea I like this person's idea

me and Austin are bouncing off each other all day and we just basically cobbled together the system of software

programs we could buy to basically like run it for us so that those were the first two yeah we're

we'reabouts in uh Traverse City was that at Andrew Christine actually asked that so yeah so we're like just uh Grand

Traverse Bay we're like two miles outside of downtown basically oh okay yeah awesome yes so we got lucky

they introduced some like serious restrictions I don't even know if they're allowing short-term rentals anymore we got basically what

happened is like two weeks before we were set to close on the second one yes Austin has a good friend who lives

in Traverse City who called him and was like basically Austin call your mortgage broker and have them

close as fast as possible that it's going before the city that they're

trying to like ban short-term rentals because there's getting to be too many so I called my mortgage program was like

we we I don't care what fees I have to pay I don't give a what happens we

need to close this immediately yeah we turned in the application the day

you there

I don't know if I lost him or not or if it's just me

okay looks like I might have lost him might have them back

just a minute let's see if he comes back

so you just text me uh hold on he's coming right he should

be coming right back in give me one second sorry yeah it looks like it's him

so all right hopefully he should be coming back yeah

he left the studio he should be coming back in now so this is a great time to

say anybody who is listening puts your questions in the chat just before he comes in

I will get them in here I you know Andrew by the way thank you for coming

contributing to the chat I it is a lottery system and he's grandfathered in

on that that's awesome and let's

hold on he's should be coming back and

uh

okay hey so sorry what happened yeah I'm here can you hear me yep yep okay I can hear

you now so yeah so that no that's perfectly fine

we've had it done before so so so where we left off was it was

just before you you're you said your mortgage broker and like hey let's get

all these I don't care what error fees you know we need to close yeah yeah it's it's yeah so I called him and

was like Hey the things will be done immediately we closed and long story short we got approved like I don't know what it was but it was somewhere around

a week before those restrictions took place so I don't know if you can even do

that in Traverse City proper anymore but we got grandfathered in and as long as we don't let our criminal license laps

were okay so yeah okay so you do have to so you do have to have a license in

order to do that yeah so what exactly consists of yeah so anybody who wants to do

short-term rentals they should be working with a real estate agent or broker who's like familiar with

short-term rentals because there are a lot of places who restrict or ban them all together

so you need to like you personally need to take the responsibility any City you're looking in you need to personally

call the city or Township and see if they allow them like some places like Nashville I

don't know what the deal is we're we were looking all over the U.S before we decided buying Traverse

I think Nashville has like really shutting them down hard so you had to go outside of Nashville there's a lot of

places with restrictions so I think it's different everywhere we just had to like turn in a bunch of information basically

pay a fee gotcha and all sorts of it yeah it was it was simple but we had to do it

the government's got to get their cut yeah for sure I I think what it what it

is is the uh the lobbyists from the hotels are are pushing hard so against

that I agree with you yeah totally we're totally cutting another market share for sure so yeah so

I believe it was yes Andrew again he said East Bay township has been nuts uh

people who bought for short-term rentals are ending up ending up stuck with a

300K plus property properties they can only rent for 1600 a month for long term

it's crazy oh I believe it yeah we're technically in East Bay township to be honest oh really I'm just so grateful

that didn't happen to us yeah so on that can you can you run across

how do you run your numbers for short-term rental versus uh long term and how do you figure out

the the price uh the the offer price yeah so uh there are so many caveats to

this I guess the first really important thing for people is I like to have multiple exit strategies on every deal

right okay so uh even if I know I'm a Rockstar terminal I want to have like

additional options so I guess that's the first note that's a personal thing but I think it's a good thing for everybody to

do I knew that even with this first Traverse City house if I couldn't short-term rent it then I would still

like to go there with my family so that made me feel really good but to get back to like basic to

answering your specific question yep I do is I'll pull up a property and then what I'm going to do is I will

whatever figure you know if it's listed on the market or if it's off Mark you know if it's off Market I'm gonna figure out the purchase price

and then I'm gonna go into air DNA or BMV account I use air DNA

and because I'm a real estate I'm a real estate broker I have access to that for free through that okay so here it's

usually a paid service for most people you might be able to find a Bigger Pockets link where you get it cheap but I'm going to take the perks price I'm

going to take the link to the house I'm going to go to air DNA I'm going to type that exact address into air DNA on my

bedroom some bathrooms in and it's going to spit out basically like comps okay so it's going to say hey this house is

projected to make 59 000 a year based on these houses around it so I like that

it's actual data being scraped off of airbn Airbnb I feel good about that right so it's not just like an hour I

mean it's an algorithm projecting but it's using actual numbers and then basically what I'm gonna do

is I'll divide that you know across 12 months right so I

know I'm not going to have even occupancy where I live I'm we're in Michigan it's going to be very cyclical prop probably about 68 occupancy but I'm

trying to get just an idea on a monthly basis so they just say it's 60k so we

can have an easy math problem I know that's an average of five grand gross per month I'll go into Zillow I'll do

the scroll down to the mortgage calculator for me we put 25 down on those things

you could talk to your mortgage broker whoever that is I think you all should call Brick Financial because they're amazing but

you might be able to get your first one on a second home loan which is ten percent whatever it is whatever your down

payment is I'm plugging into that mortgage calculator and getting an estimate from Zillow so let's just make it easy and call it 2500. cool

yep the other important thing that everybody should know here is I am estimating future taxes as well because

it's non-homesteaded so I guess look up Michigan property tax estimator I put in

the city I put in the school district the SUV is going to be half of the

purchase price 12 300K the SUV whatever 20 or they says values 150.

and that'll give me updated taxes so just make sure you have updated taxes in that mortgage calculator for Zillow all

right yeah and that's actually even whether you purchase a new house or short-term rental you need to do that

and I think that's where a lot of people make the mistakes with running their numbers is they don't take an account

the updated taxes tax you know so it

because you could I think a lot of Acres yeah no yeah the pre the thing is is the previous owner could have owned it for

50 years and they're paying a thousand dollars in tax and and when you buy it it's going to go up it's gonna be

uncapped and it's going to go up to six grand attack in taxes who knows you know totally so yeah

I don't want to interrupt you go ahead yep no that's okay that's all right so say my average which I know I'm

not going to get every month but average capacity or five grand gross all right and I know with with updated taxes and I

know with like landlord insurance right not regular Insurance landlord Insurance you say I'm 2500 bucks online per month

that's principal interest taxes Insurance all that stuff right um now the next thing I'm going to do

it depends how hard you want a stress test to do I try to break every deal honestly uh pretty aggressively

primarily purchase it but then the next thing I'll do is I'll add you know whatever 10

of you can add 10 of your gross or your repayment whichever you want so say 500

bucks I'll think of as capex right so Capital expenses I'm pre-planning for a broken furnace in AC now I'm at three

grand yep right uh I don't have to account for vacancy like I would on a long-term rental because that's already

built in to the gross number but yeah what else am I missing here oh

then I need to put in software right I use a ton of software on our stuff so I don't have to do it personally I don't remember what that is we'll get

caught 300 bucks a month so now I'm at 3 300 bucks a month same at five grand gross minus that 3300

I now average 1700 right I'm sure I missed something in there yep but yeah that's I mean generally

speaking how do we go about it okay awesome and so what do you how do

you come across so when you come across a property do you say okay my multiple

strategies are the short-term rental do I do I do you account for the long term as well or just for a midterm rental

yeah totally so what I would like on a single family home I would look at

traditionally I would look at short long term and now I have a friend who's like the midterm midterm rail master so

that's like a new thing for me to be learning the last few months it's pretty intuitive previously I would just do

short and long term on single family because those are things that makes most sense for me and I'd just run those two models

essentially and then at the end of the day I also wanna to own a thing in a place that I like because that not

everybody has to do that right I just

you know

so yes which is what I thought I would do it's difficult to for me to want to

go these places because like now I'm not making Revenue in those times but yeah I mean personally I mean I have a lot of

friends who are like dude I don't give a where I buy investment properties as long as long as they produce enough cash and I'm to some degree in that camp

but like you know especially on single family stuff like I kind of want like it you know yeah so yeah I would go short

term run it that way long term what's my worst case scenario and then I'd look at like hey if I gotta flip it or not

really flip it but say I have to sell it you know what's the worst case scenario if I can accept the worst case scenario

then I'm down gotcha okay yep that's awesome

so and then you with the purchase price you just make sure that you can

you what what kind of return are you looking for for say the worst case

scenario or a long term or a short term or are you looking for a couple hundred bucks uh for the worst case scenario are

you looking uh to best case scenario a couple Grand I mean what sure what is

the profit yeah so yeah that's a great question for long-term rentals I don't own any

long-term rentals personally my my business partner Austin has a whole portfolio of those before we started doing short-term together I'm sure I'll

own long-term rentals like apartments are appealing so if I was looking at long term I'd want 100 bucks per door minimum

short term I don't really have a number in mind to be honest uh they make a lot of money so I haven't really had

to I haven't really had to ask established a loan number because I'm pretty

satisfied with the ones we purchased I think I'd want to at least make a grand per month on that those like minimum

there is you know especially if you're not utilizing all the software systems we're using like that could end up being

a lot of work and so I would want to I would want to be rewarded well right like you gotta turn over the property

every time somebody goes and if you're not paying a professional cleaning company and do it like that's hours of

work so I don't really have a number but I guess I definitely would I would want a

grand at least per door there gotcha okay so uh Gary Corbin actually asked

lots of good info what is midterm rentals and I guess we didn't really cover that

too much so everybody knows what short-term rentals is everybody knows what long-term rentals are what is short

midterm rentals yeah so I should have thought people are asking this all the

time right for clients and stuff in real estate sales I think if short-term rentals is everything under 30 days I

don't let anybody go past 29th days on my short-term rentals because I'm kind of paranoid and I don't want them to

have tenant rights because I don't want to go through the process of evicting them so I think short-term rental is 30 days and under right for me it's 29 days

and under so I have a day a buffer I think if midterm is anything between 30 days so one month and 12 months less

than that I think of as a midterm rental and then I think of long-term rentals as 12 plus months right midterm rentals are

not typically close to 12 months right there are a lot of times yeah two three four six months this is typically travel

nurses travel medical people in general this could be uh whatever Insurance like

a lot of like fire damage water damaged houses insurance will pay for somebody stay there

other midterm rentals are professional athletes um all sorts of stuff like that so yeah

okay that helps awesome yeah so that that really helps a lot of people out there and corporate

rentals you know but keep in mind it very follows the rules with short-term

rentals where it's still fully furnished so that's why you totally ask for the higher number you know for a normal

long-term rental that's looking for sixteen hundred bucks a midterm rental you're probably looking at you know 26

to 3 600 bucks you know a month yeah am I off a little bit I mean is it

close no no I I no I think that's totally accurate yep and then like short-term rentals for me like in a

worst case they're usually like I mean a worst case scenario they're double long-term rent like they're

usually like four times somewhere in the two to four acts of like long term right so gotcha yes it's a very vague General

number it all depends on the area right you know it does totally yeah it's hit

and miss you know you go downtown Detroit and you might have some there but you know you go on the outskirts I

unless you're close to Royal Oak who knows how many there and I haven't really looked at the market for

short-term rentals here in our local area so I don't know dude there's so many it's wild yeah

and it's because of good hospitals like people okay hospitals right so the

typical it's wild people typically think of short-term rentals as only vacation stuff

which is probably the bulk of it right like it's nice to have one in a vacation area but also like for short

midterm rentals getting close to like uh good hospitals is like a big deal so

yeah like Royal Oakwood or Corridor uh gorilla Ferndale that area there are a

lot of short-term rentals dude so many yeah

yeah they do yeah oh nice cool yeah I grew up off Spencer Street in Ferndale

no kidding dude we owned a gym at uh that's where our second Gym was oh nice

what was the name of it it was rise Athletics well we had Rice Athletics in

Farmington Hills and then rise Athletics Ferndale was that location gotcha yeah awesome

yeah I grew up over there off of Hilton so very cool yeah and

yeah I seen it when it was not so the

way it is now to where it came to so yeah it's come a long way

it has for sure but I yeah so kind of

understand that and I think that's where the the housing prices over there just kind of like skyrocketed not only

because of that but I mean obviously because the value too but it's really crazy so one thing I

want to bring up here as well is I think you do something great that not a lot of

other people with short-term rentals do and I think you actually

everybody wants to do it themselves okay like I'm gonna try and do it myself I'm gonna you know do this do this or I'm

gonna hire somebody I'm gonna hire a property manager to do this I'm gonna hired one thing that I've noticed with when I

came to your event is that you actually set up automation systems

okay and setting up automation systems where you're basically hands off

the whole thing just all you do is buy the property you stay you get it ready and then you put it into your automation

system uh where it goes to the three sites and uh and then if one of them

books it the other ones can't it goes into a central calendar and if I've seen any of this wrong

please let me know no you are you're doing good yeah you know yeah you want me to explain it

briefly I can yeah please do I think okay where everybody's gonna get the value here it's this automation

system that that you're doing sure okay so basically what we do is all

right so people ask me all this is an important note there's going to be people watching this today and everybody

asking this every time I talk about short term when I was like what if there's a change in Airbnb or like what if the short-term rental market gets

oversaturated what if the short-term rental market evaporates all right so it's a wonderful question and one I

thought a lot about before I got involved but I operate our short-term rentals like a business I am not

operating at like a mountain pack like you know it's just like a business for me this thing makes me money and it's

important and so I dedicate time to like systematizing it and making it a professional repeatable preferable

experience just like I do in real estate sales so we prep our homes with nice furniture

step one we get professional photos step two please don't skip 300 photos because

you're gonna like when I think of trying to not I'm okay so I'm thinking I'm

Gonna Save 300 on Pro photos that's literally one night like one extra night so get the emperor

photos then we build out with every single home or every unit gets Airbnb Expedia

booking uh Airbnb VRBO Expedia and booking.com okay so every unit is on

four places all right and none of I don't have to pay to be a part of any of them I mean they're gonna take some of

my the money that I make but I don't have to pay them money per month all right which is cool I think all of those

are gonna blend into a multi-calendor okay so just like you said I can't get double booked so many books me on VRBO

it's no longer available in the other places right uh then we prep all of our homes

we use Smart locks so we put a smart deadbolt on and then we go a step further because

Austin and I live you know off me and my wife were four hours and 10 minutes

Austin's 10 minutes for me so he's four hours 15 minutes or whatever so we had smart dad bolts and then we

put what's called a passage door handle on the actual door handle on the front doors

we do that because there's no wait there's no lock they can't lock

themselves out yeah right so we Smart Lock passage door handle then we go a

third step further and we put a lock box like old school lock box on there too all right so the multi-calendar we have

built out so that the multi-calendar generates a code

for this specific gas sends it to them I don't remember what it is three hours beforehand

and that code only begins to work on that Smart Lock 15 minutes before their

check-in their check-in is at 4 pm and it dies 15 minutes after they're

checked out which is 10 am right so we don't have to manually create codes every day we don't have to

do that it's automatically done because we built it in the system yeah right and if there's any issue they

can call us and I don't have to worry about sending somebody over there I can say here's the lockbox code or here's

the master code for the deadbolt right I don't tell them it's the master code I say oh let me generate a backup code for

you yep no backup code what else I have built out automated

messaging I think there's nine messages in emails something like that from a second somebody books throughout their

entire life cycle with us until after they leave so every question they could ever have is already answered there's a

link to our house rules check in check out I'm so sorry we're not flexible on checking our checkouts

because we have a professional cleaning service you know so the house is actually clean and so all the automated

messages go on their own we don't have to do that we have Smart Pricing software

integrated with the multi-canitor so people are always like do you have to update the prices every day no I've

never updated I don't do that at all Smart Pricing does it for me and it does it based off of other houses nearby

and so the next question is well don't you have to jack it up for the Cherry Festival when it's crazy I will explain

to say it's already built in because everybody else is going to get picked up booked up faster too so like is it

automatically going to be increased I don't have to do anything God what else we have a clean great

cleaning lady she's the best and uh she has our calendar so she doesn't have to

ask us when to clean she has her own cleaning code so I can see on the log when she goes in and out of the house

okay she just Auto I mean there's no I mean she's just hired she goes when

somebody checks out without telling us and then she just builds our account and that's it

I think I covered it all there man but so how many different how many different

pieces of software are you using for this automation okay multi-counter Smart Lock

Smart Pricing software the automated messages are part of the multi calendar so that's not separate so I guess if you

include the cleaner for things but the cleaners it's really just three pieces of software I think maybe four

not a ton pretty easy yeah that's awesome and then uh it is

awesome and pretty much all we have to do is like if somebody steps outside of the

normal like the met the stuff that our messages and emails right so something weird happens like say the battery died

on the deadbolt is a perfect example of something which may occur than that personal cost but it's really

just a couple phone calls and texts a week actually honestly that's awesome so

Andrew said what software do you use to manage your channels we kind of just answered that

so now you're sending these off to Airbnb VRBO and what other ones

media and booking.com but honestly yeah so those are the four but honestly

like that I'm not like a huge fan of those two I would like Airbnb would be my

highest priority right they get a lot of like plaque online but still I think they I don't know I haven't looked

um plus percent of our traffic is from there that's the highest priority for sure then VRBO and then

expediambooking.com or just like why not have them for us okay so what's the software that you use

to actually push out your listing to um all those all those four

host away just look up multi-calenders and figure out the one that you like the best yeah but most away is the multi

calendar that I use awesome and so you so when there are maintenance

issues and things like that your does your cleaning lady tell you or like for instance a battery dies on

the deadbolt like how does that all like do you call a maintenance guy

what is the procedure for that yeah so this is the usually the next big

question is like what happens when the house needs repaired like how do you know it needs repaired and the easy answer is a guest either a guest is

going to tell me or the cleaner is going to tell me because there's somebody there all the time and so uh this totally happens this has

happened countless times I don't even know how many times since the first one went up and I think the first one went live uh end of June the second one went

live July 4th something like that I don't even know how many times six times I'd just guess close right many we just

I mean I do the exact same thing a normal property manager would do is I just call a local person who is licensed

in whatever it is so I have a favorite company that does Plumbing Heating

Cooling and all handyman services they're properly licensed in Traverse City I literally have a tab with them

like I have an open line of credit and I just call them and book it for a day

that nobody's there and that's that I mean so same thing any problem manager do awesome so as far as the cleaning

when do they come in and is it like a normal hotel where you check out 11 and then the cleaning lady comes in and then

you can check in at three for the next person things like that that's a yeah so

that's exactly what happened so we this is another great question that pops up a lot I think a lot of people this is a

great this is an important area where a lot of people have a really hard time establishing and maintaining boundaries

with their people we're really clear in all of our emails and messages that like hey this is our checkout time our checkout

time is 10 A.M they get that that's the first message they receive along with the house rules our check-in time is 4

P.M it's said multiple times in the messaging before they ever get there so we don't have a huge issue with people

on this but every once in a while somebody will ask you know can I check in early or can I check out late at

which point in time I say hey look like I would love to do that I'm so sorry but we regularly have people you checking

out in the morning and somebody checking in at night we only have that six hour window from ten to four and we pay a

professional cleaning company who literally like actually sanitizes and cleans the whole house

I can't eat into it I am so sorry if it's an issue you know like we're probably not the place for you but we

just want to make sure we have a repeatable incredibly clean home for you so we can't let you stay late but I

promise it's going to be really clean when you get there yeah that's awesome and that's our massive thing around it you know it's

ten and four we're like we don't deviate at all yep that's awesome so

the thing I actually liked about so the book The booking.com and

Expedia the thing I like that you go to those is because you get those people

that don't normally go through have never done Airbnb or VRBO you know yeah

um and for me I've actually never done an Airbnb um I rented oh cool I I've actually

rented a place in Milan when I was there for vacation okay and okay I I did it through booking.com

and then I've come to find out it's actually an Airbnb like it's but I do oh

my gosh you know I I yeah it was a whole

apartment you know I had to check in like it was a one bedroom little little flat or whatever but yeah it was crazy

yeah dude that's nuts yeah so I I think that's awesome right we have that we

have those for that exact reason the traffic is less but it's not a reason to not have time right it's great exactly

that's cool yeah so with that you know what is you know going

forward what is your plan for the future I mean how many do you have right now and what are you trying to get to and

are you trying to break into different markets yeah totally okay so when I originally

started I was looking all over the US for places that worked for this and I

just love uh I love Northern Michigan and I know this area really well right

so there's probably cooler spots but the numbers are great for me and I know all

up north like I've been going up there my whole life so expanding another markets dude I'm

told really open to it I have I have buddies who buy all over the place

who make my portfolio they have thousands of doors right

but yeah so I have two short-term rentals that I own 50 50 with Austin and

then we syndicated a whole hotel so it's a 15 in a hotel three single families on site so that's 18 units so that's how I

got to 20. my goal is to have 100 units by my birthday which is July 31st

obviously this year so I have whatever seven or I have six months to get 80

more which sounds like a lot but I have seven under contracts set to close by the end of February and I should have

a 26 unit under contract I hope right in the morning I don't know we'll see I

mean commercial negotiations are long we're verbally agreed a 26 unit that I

can at least make 28 Maybe 29. so yeah that's where we're at right now and

that's where we're trying to go I did not plan yeah whoever just said they'll find

me some deals hit me up I did not plan to be a short-term rental guy I really want a shitload of apartments for

anybody who's willing to look for deals with me I will bring you in bring me all the apartments you can find I will also

look at like ends and non-branded Hotel I don't want anything to do with

like you know uh Big Brand hotels that's not not my job yeah so that that's

awesome so the guy who said that they'll find you some deals his name is Andrew casting he lives up in the Traverse City area

maybe a little bit nice but he's an awesome guy I work with him I I've worked with him a couple times but

he comes down here every so often so great guy to work with yeah hit me up getting deals so

and then I Larry Shepard asks what's your cash flow after expenses with what

you have now oh man okay so current I'll give you

current I'm not and then I'll tell you what proforma is yeah yeah okay so this is where this is where we could get all

like I can make it sound mind-blowing and be so sick for tick tock right but I'm gonna tell you the

real deal okay so real deal let's talk about the the two single

families those will probably gross 90 comfortably each okay so we'll just

call it 90 each 1980 probably 90k each

all right okay and uh we'll we'll just call it a 50 expense ratio

but then you know we got to reduce by debt so worst case out personally owning

50 just my part pull a grand net per month but what I really do I don't even

track that because I use that money I don't like pay myself because I use that

to buy other deals right gotcha yep so what you just assume 50 operate fifty

percent you know operating expenses there uh

the hotel I found out because it's syndicated I

can't share exact numbers but anyways it's okay the grossest it grosses

a lot previously it grossed about a half mil

we can operate off 50 they were not operating at 50 expense ratios lower so you know low 200s and that is we'll

increase it a lot so we'll grow it to you actually maybe I

can because it's a case study I don't know how far this coaches is recorded but we'll increase our gross income to a

lot really high 800s yeah off that property and again 50 expense ratio so I own

six personally my LLC because we syndicated it and had to do a lot of

stuff to make that deal work for all of us I personally had 16 of that one property

right got you also known's another 16 we have two more GP partners and then we

have a coach LPS right private investors who invested with us and so in that

syndication how much did you raise for that did you put any of your own money

I did yes yep so there's 50k now refundable EMD

there so me and Austin covered that we covered all due diligence we were probably all in 90 95 or something like

that I would say probably 95 should be safe uh we raised 1.34 mil okay uh which

includes all of our renovation and design budget so all new furniture all of that stuff

so I think that answers all of your questions yeah so and then one thing I

want to ask was how did you come across doing this indication real quick

like sure I mean everybody like oh yeah syndication but there's

I mean lawyer fees there's thousands of dollars I mean I I've heard somebody's son you

know spend almost 100 Grand on just the lawyer paperwork you know

yeah that would be extreme that person would and that I have no idea how you get there our attorney fee specifically

on that one deal okay so the important thing to know is right you have more than one outside person particip one

person two entities is a JV beyond that you're in a different area we have 13

LPS so now we aren't being overseen by the FCC which means we because we're we

want to be legit we want to do this legally and do it really great protect our people the best of our ability so we

don't cut Corners we hire an SEC attorney our SEC attorney prepared all

of the documents the SEC filing the operating agreement subscriber agreement the PPM all that stuff I think our

attorney fee on that it was like 12 600 or something which I

find okay pretty normal that was talked to a bunches the attorneys and the norm

the norm is like 12 5 to 15 per deal so you have to take that into account and

you're to go back to your question of where did I learn this me and Austin were on our way driving

from Traverse City back down seven Metro Detroit you know Norco and Plymouth we are listening to real estate podcasts

as we do we heard a guy named Tim Bratz I don't even remember whose podcast he was on Tim Bratz is on there and we were

like holy this guy is cool like he went from zero to whatever he got over 4

000 units and I don't whatever five years or something and he had this course going on called commercial empire

which was like a grand in like a week or two so we're like dude we'll you know

absolutely I'm a huge uh believer in investing in your brain and you know

right bats an excellent use of funds so we signed up and that's where we

learned syndication and so we leaned on them very heavily uh a great you know

we're part of that Mastermind still Tim is awesome his whole crew you know very well at this point in time you know we

had his guy who does all acquisitions underwrote that deal for us before we ever wanted her contract we got his

Blessing he said absolutely this is a great deal I've double checked it looks good go get it then we have their

on-site legal counsel look it over you know and so they hooked us up with like

you know tons of referrals their staff looked at it and then they gave us outside referrals to help us process it

through so you know well that yeah yeah so that that Mastermind right I

think that we're like grandfather or something I think we paid 12.50 a month to be part of that but that I mean think

about it this one deal

for my whole life for my whole life and so when people say stuff to me like

it's crazy that you spend 12.50 a month on one Mastermind I'm just like is it though like is it actually crazy because

I wasn't doing anything this before and now I get to talk to people all the time

who literally actually have many thousands of units and so I just got in

the right rooms right like you know going around here being part of a 20-year portfolio sounds

really great or maybe it doesn't I don't know but it sounds like a decent amount and then I go there and I'm just like

this is I am I need so many more you know what I mean yeah it's just so it to

me it does sound crazy it to me it does sound crazy if you're not going to take action if

you're going to take action totally then it's 100 a no-brainer you know it's

so doable yeah yeah I mean that's the thing right you just gotta get around people who are doing

what you think is crazy on a regular basis you know like this is so annoying

normal for them like 26 or 28 unit deals like small for them like really small like a lot of them are just buying

hundreds of units at a time and giant portfolios new construction stuff that cost tens or 100 million plus and so

there's us we're like oh yeah this one's two five and they're like cool do you need any help you know most definitely

and I love that so I love that and and that's where you start meet people you build those relationships and you know

what on the next deal they need some money coming in hey can I get a portion of that and ride their coattails you

know uh yeah and you learn from that deal so that you can be the head of the next one and so you know so are you guys

managing this this project or somebody yeah okay no yeah yeah so here's how yeah so

we set it up me and Austin are basically set up as like the the asset managers essentially so we're both very familiar

and very comfortable with like construction and renovation so my idea has been in the construction industry

like my whole life in some capacity he builds a ton I did some construction for

a couple years like during college I just love that stuff Austin you know they own a

Building Company his dad's been a builder and developer for whatever ever forever 35 four years probably has

developed we should ask them 4 000 Lots I think it's probably safe and insane

right so what happens is that's me and Austin's job is I got the deal under contract negotiated the whole way

through processed all the paperwork right got us to the Finish Line me and

Austin put together the SEC filing and the offering together we presented it we raised funds we brought in a good friend

named Rafa Loza who's the bomb he runs the same model we do in short-term rentals so we brought him in gave him in

some Equity so that he is the property manager right once we closed all me and

Austin had to do I shouldn't say oh because it's still a lot we oversee all of the renovation

that's all us all right so we need to make sure that is all smooth we stay within budget get it done on time

and then we become then we sit back into the app that manager position where we are overseeing the bookkeeper the CPA

and Rafa who's doing property management and we make sure that quarterly distributions are given out to our LP

investors on a timely basis right so gotcha that's how it's set up for that deal

but we can do whatever you want and like I mean yeah however you want that that's awesome all right so you

know the property manager is he going to be a us on-site every day property manager

no so he lives in California yep so we met Rafa in that same group I told you

about Tim bratz's Group which is called Legacy wealth if anybody wants to get involved with it hit me up I'll give you

a cool little referral code there but we met Rafa at one of those

events I think it was in Dallas and he was

crushing in that short term for me and your system is really similar to ours except your 80 gazillion units

he's running our Arbitrage model I don't remember how

many units he had back then but it was probably 50 plus and then

he had a whole staff of va so we were very impressed with how he operated and

so when we got the band under contract I me and Austin called a bunch of the

people in Legacy Family that that Mastermind and we're like hey do you know Rafa people knew Rafa well we

should do a deal with Rapha like would you trust raffle with your money would you try scrap of managing your property yep and they all unanimously said yes so

that's how he's going to be involved in the deal he is remote but we do because it's 18 units there's gonna be a lot of

cleaning it's gonna be slammed spring summer and early fall we do have a lady on site who cleans and kind of like sees

the property full-time okay that's awesome so awesome so

real quick how can the community here help you with your future endeavors and

then how can we they get a hold of you in order to help you out Okay cool so the uh you can find me on

all social media tick tock tick tock Instagram Facebook YouTube at Nick

bastinelli or at the best finale team so that's how you can find me my

phone number is everywhere on the internet and then how you

can help me I would like to see as many deals as possible I'm happy to bring

people in if you however you want if you bring the deal I'll make sure there's a way that you are compensated but I am

looking you know primarily for apartment complexes I will also look at Self

Storage triple net and ends you know the bigger the better I ever know yeah no

cap on bugs yet Michigan would be cool but you can send me stuff wherever we underwrite

really quickly so send me anything you think is a deal that's for sure send them all got you Nick at basketball team

is the email yeah Nick at best finale teams uh Team yep

yep I'll put it in this little chat box here yeah there we go and then at our rice Denali

at the fast finale team there you go you got it all

it's in private chat but I'm I'm copying it over to the regular chat here so cool

but yeah so we can do let's see here uh continuing to do

that but so what primarily so you're do you do you own homes in the local Metro Detroit

area yeah so I nope it's my primary just your primary

yeah okay yeah so I'm like very not opposed to owning stuff that I don't I actually for me uh this is the thing I

was like really thinking about and concerned about in like early before I actually got involved in real estate

Investments like when I first got involved in real estate and sales I'm reading all these books and all these podcasts and I think man I got to be

close to the things I own and now I actually don't I actually don't want to

be close at all because I think people fall into the Trap of that doing stuff on their own

which allows you to not operate it like a system like a business or you know put

processes in place so I know that I'm forced to treat it well and treat it

like a business and set up all the stuff that I should to make it run to the best of its ability if I can't drive to it

you know in seven minutes and I love that and that's one thing that I think is

really interesting about your system is that you're doing the automation

I think the Automation and you treat it like a business and the way it is that's going to help you expand the fact

that you did that early on is 100 help help you grow for the

future uh long term so yeah my my day job I work in the

automotive industry and we do testing some automation so I I 100 I understand

that so yeah yeah so even like uh so I would love you know I we have short-term

rentals we're getting to be known for that sort of thing which is cool but even like on apartments I would do the

exact same thing like I'm totally not nervous to be really far away from those I would prefer it I would still have multiple layers so you know right now

we would have a property manager for like apart for those people who are doing apartments or even single family I

would have a property manager and then for us in the apartment world we would have an asset manager which for now is

me and Austin but eventually as we scale up we'll hire an asset manager who will come in and so there will be multiple

layers of oversight on all these properties always because we just want to make sure they're really well taken care of

that's awesome so Larry Shepard asked uh what's your

underwriting process for properties out of state determine what you want to invest there and when do you when when

you get a deal sent to you oh sorry okay cool investor when you get

a deal sent to yeah yeah so

it depends on the asset but let's just say like you know Apartments because they're easy uh basically what I would

do is I'd be trying to get on the phone with somebody who operates in that market no you're not on the phone maybe it's Facebook it's probably actually

going to be Facebook in my commercial group and I'll figure out what those PR like properties in that area

of that asset class let's just use Apartments I'm just going to make somebody make some place up like say let's say apartments in Lake Georgia I

try and get in contact with somebody who's like a very active apartment investor in Georgia or if I don't know anybody then I could

call Commercial uh commercial real estate brokers in Georgia in that area

and all I'm trying to do is I'm figuring out the cap rate that

those are trading at right for like a nice renovated updated place I'm always looking for light value add and like C

plus and above areas okay so I don't want like war zone stuff or total gut like I gotta start from like framed you

know apartment or something but I'm just figuring out a cap rate and then I'm just running it through a calculator essentially I mean commercial properties

are pretty easy to do like napkin numbers on

so yeah just utilize that cap rate to figure out what my offer is at that

point in time you know if I know the value out I'll Reduce by that but there's a gazillion calculators out

there like we have you know a Legacy Family calculator from Nick Burton I mean just look up like underwriting

calculator for apartments and you'll find a bunch online who's that other guy invest with Ace I think has a good calculator David two

pin I don't know if I'm saying his name right he has a calculator so we utilize

those but I think you should also be able to you know honestly you need to be able to evaluate the numbers yourself

yep so when I look at a property first all I'm asking right off the bat is like

hey what needs to be done this property you know like have the kitchens and bathrooms been updated so I can get a

ballpark renovation number per room and then I asked for a net operating income

and that's literally all I need right so do you want me to actually I mean I can do one if you guys want a simple one

yeah that'd be great 90 seconds Okay cool so let me see if I can map this out

real quick so let's just say somebody tells I'm just

gonna make it up so it's really easy for us right let's just say I don't even care about the units let's just say

somebody tells me their net operating income on an apartment complex this

exactly the same for short-term rounds or short term or like a 10 has a 100K

net operating income all right now I know that let's use Apartments

okay say they're trading at six and a half cap I'm dividing by .065 that's six and

a half percent now I know my Max allowable offer 1.538 say I know there's 100K in

renovation whatever now I'm at 1.438 is my offer on that thing right one two

four three eight million yes yes okay yeah so you just keep going you

know like just get really like go online and watch YouTubes on like how to use

not operating income to figure out an offer it's pretty easy so it was like

it's confusing when you start or I mean it was for me but then you just yeah it's just like anything right it's like

evaluating a flip or like a long-term rental or a single family like wholesale deal the more you do it the better it is

so I just make you know a goal for myself of maybe evaluating like two properties per day until I get really

comfortable and can just do it right off the bat gotcha okay so yeah Andrew Andrew uh

casting says super easy value equals noi divide by cap rate

exactly yeah totally yeah so 100 uh or value times cap rate equals

projected noi so you know yeah just look up I mean look up that

whatever look up the math problems online those are yeah it's it's pretty simple I love commercial because it's

literally just a math problem like you know single family we're having to pull comps same city same school

district usually within a mile same style of home but commercial is literally just a math problem like if I

increase that operating income by x amount then the value of the property goes up back and I really like that

gotcha okay awesome so so we already got people how I can

get a hold of you and yep you know if they want to get anything is there any

last words that you want to reach out to anybody to you know if they

come across anything they can get a hold of you and or anything like that yeah yeah so you guys contact me

248-826-1533 that goes like right through my CRM so I'll be able to like save your number in there and not lose

it which is great emails you know where to find me on social media I mean legitimately send me any

commercial deal that you actually think is please don't sell me stuff that's like you already know not going to work out but if it's a cool

deal send it along we will check it out we'll find a way to get you involved if you send it to us

awesome so great awesome I'm glad to have you I really appreciate you

spending the time with me and coming on here and adding value to everybody here hopefully you can at least get one deal

out of it so I would love it that would be great thanks again for everything yeah

not a problem at all so and again anybody out there who is watching this whether you're on YouTube

or on my Facebook Channel please uh connect with Nick get a hold of them

send him deals and go from there that way we can all do deals together so all

right let's do it up thanks Randy I appreciate it time no problem thank you for your time I

really appreciate it everyone have a great day and thank you for showing up for another episode of real estate talk

with randy stedwell this is episode four in the books have a good day

bye everybody thanks.

Real Estate Talk w/ Randy Stedwell Episode #3 | Ron Walraven on his 24 years in real estate →

On Episode #3 of Real Estate Talk w/ Randy Stedwell we are bringing on Ron Walraven. We will talk about is 24 years in real estate and all the ways he does his business.

Ron is married with 4 children. He has been in Real Estate for 24 years. He was first licensed in 1999, sold REO’s for banks till 2012, then went into wholesaling. He has completed about 4500 transactions. Has completed many types of deals. Currently pursuing large portfolios of single family along with researching Assisted Living homes.

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

Hey everyone how you doing out there happy that we are

live for another event here on uh real

estate talk with Randy Stedwell I have

that so I have here uh the great Ron

Walraven wrong way uh Ron Walraven and

awesome guy I'm so you know uh he has about 24 years of experience

and we're about to talk about most of them but again this is real estate talk

with Randy Stedwell uh if you haven't yet check out the YouTube channel if you're on the YouTube channel make sure

you hit the Subscribe I if you're on the Facebook group either go over to the

YouTube channel hit subscribe or stay here whichever you prefer

and with uh without any more introduction here's Ron

Ron how you doing today hey Randy how are you I'm doing good doing good so

really want to say thank you for coming on with us and and joining

joining us to join us uh you know with our group our

Facebook group as well as the YouTube channel so and kind of wanted to you know you're

a big player in the Metro Detroit area for wholesaling and just real estate in

general so I wanted to bring you on and and see if I can add some value and you can

provide some value for the group and then at the end we'll see how we can add some value to you so

okay all right awesome so you know let's kind of get started a little bit and by

the way anybody who is out there if you have questions for anybody

please do put them in the chat and then we can uh go from there like

we can answer them as we go and I you know and you'll get my perspective as

well as Ron's perspective on this so on any of the questions all right so with

that being said Ron tell us you know tell us the back story the origin story of how Ryan

got into real estate and and what happened what got you in there

well if we go all the way back to high school which is a long time for me by the

way uh I'm 59 years old I'm gonna burn been

around a little bit longer than most in our world okay I came straight out of high school

and became an auto mechanic I went to 12-month uh Automotive School in Livonia called

motec which somebody may know what that is oh I know what that is I went to

WyoTech so yeah same idea Chrysler was it was a Chrysler sponsor at school at

the time I was a 12-month uh technical school that you got to

basically get a certificate when you were done yeah and you could get like get your license from the state of Michigan to be an auto mechanic and in

those days it wasn't that the license wasn't the license wasn't that prolific you just needed it to work

but anyway I came out of there did it in 11 months instead of 12 got out a little

bit early I uh then went straight into a car dealer as a mechanic okay I worked

there from worked at a Ford dealer initially then uh uh uh Jeep Renault

dealer in Southfield and then jumped out to Rochester to a brand new Jeep dealer worked there

for a little while bumped over to Sterling Heights for a little bit came back to Rochester Bill Fox Jeep in those

days okay uh and then ended up hurting my back

uh really bad during while working because we were doing a bunch of there was just one particular air conditioning

repair we were doing a lot of and it just took my back out and I woke up one morning couldn't

couldn't work I hurt my back and uh while I was sitting around

recouping I went and took the real estate class trying to figure out uh how to uh how to make six figures again

because I was humping on cars pretty good right when I came out of surgery for my back at that point the doctor

said hey you can't do any you can't work on cars anymore so I said oh shoot I can't do that anymore

livelihood that you're living yeah it was a good thing and it was a blessing and a curse all at the same time I was

very good at it was making a bunch of cash and just had to kind of quit so I took the real

estate class which I was always interested in doing anyway and beginning of 99 I got my license

and hooked up with a local broker that was doing foreclosures for banks Okay I

uh got one account from him who

turned out to be ameraquest which is a b and c lender back in the

early 2000s and of course the world was imploding foreclosure wise in the

Midwest so I took that one account turned it into two three four had three four

hundred uh sales a year for about 10 years had 40 50 listings any given month a

team of nine people and then of course I'll wait until nine happened and things imploded from the

from the the bank World in other words they started helping everybody yeah because the government was doing what

they were doing and so it kind of took my business model and threw it out the window

I've done hundreds of thousands of values for houses in Detroit and the suburbs

I sold roughly 3 500 houses out of the city in that 10 years

and then we bought it about nine and ten when things when I was coming out of

that I decided you know what I got to do something in real estate and is using my uh using my property management skills

in a lot of ways because that's what we did for banks we took care of everything okay I decided to start wholesaling

I don't know I took that four or 500 database of buyers started looking for

deals um took me a long time to get the uh get the community so real quick before you

did that did you even know what wholesaling was like how did you figure out what wholesaling was because not a

lot of Agents know what wholesaling is well in those days there wasn't a big deal to be a wholesaler you know it

wasn't a known technique in a sense of course the grocery store is a wholesaler

right he buys a loaf of bread puts it on the shelf and sells it right paid all right so it's not a the concept of

buying low and selling a little bit more is is not new in that sense

but it wasn't a technique that was very well known um there were four or five guys even in

Detroit at the time that were because the reos were so prolific you didn't have to you could snatch

those things off the MLS on those days you didn't need to Market and do all the things that we do today right about

marketing you didn't have to do that and uh so when I I just took that

prowess in that time and the database of buyers and just turned it into a

wholesale list now you know at the beginning of that it wasn't that simple of a process meaning

I just didn't think about that overnight and started doing it it was more me just

understanding contracts and knowing how to maneuver through that

so even then it was more like a it was more like a listing in a sense meaning I

would pull deals off the MLS send them to Local investors and and then that's

kind of how I it kind of developed into the wholesale when I realized that I

could make you know five or ten Grand on a house as opposed to making a simple

commission right you know in the REO days if I made eighteen hundred dollars on a deal that was a lot

so obviously today that's a different and of course I was selling 300 deals a

year at that number because it was listings it wasn't me looking for the business right

so it's a lot different it's the wholesaling technique is just different of course I developed it my own way of

doing it and I got involved with a bunch of masterminds and things like that at a

higher level so then I took that team of eight REO people and it dwindled

and built it back up to a team of eight or nine through roughly 14 through 19

was kind of our Heyday okay there's the deals you know we did 160 deals in 2018

just under 119 and you know so obviously covet comes by in 20 and so forth but by

the time that covet came I was very good at it all right with a lot of business and had a partner at the time

that uh you know we both complimented each other very well he was a marketing kind of guy I'm a dirty down and deep

you know down a dirty deal kind of guy I work with investors as well as I can empathize with a seller in his living

room and you know which kind of goes back to my days as an art as an REO

broker I didn't really have or even a mechanic I didn't have to be a sales guy

right I just had to just had to kind of just get to get the assets and then of course when you start

wholesaling truly you have to become a sales guy in a lot of ways right right

I've learned how to speak to Sellers and learned how to be empathetic and

understand the numbers and do the formula and all the stuff that we do yeah I'm very very uh it's easy for me

to it comes out of my mouth naturally now I don't even have to think about it in regards to how to respond to a seller

so you mean you don't just get on the phone and be like hey what you want for your house no no you have to have some

empathy right you have to understand who your audience is I guess for lack of a better term and your audience was either

a family member with a with a with somebody who's passed or somebody who hasn't paid their taxes or their

mortgage is upside down or whatever the stress is you just have to be able to solve their pain right because that's

really what it is you're just like hey I know you're about to go in foreclosure but hey what you want huh how much you

want yeah now now are you are you looking to maybe sell your house yeah

yeah well why do you call me well your name's public record you know all those things exactly yeah I get that a lot is

because I my primary channel is either either javine or cold calling so I get

that a lot how'd you get my number right was public record it's public record so

the worst one is when you get the daughter's cell phone you know when you consider cold call to

daughter cell phone and they're all over you because how did you get my daughter's phone number oh don't you own

the phone yeah well sorry oh by the way do you want to sell

your house yes even and they're yelling at you you before you get off the phone you ask

them do you want to sell your house right or no right yeah yeah that's hilarious I I everything can

get it go we can go on for ages on stories for sure so so after you've

figured out like okay you can wholesale these for more than you can sell them for just putting uh you know putting on

the market how did you get around the banks saying that you know

because there was a stipulation you can't assign in in the Banks contract they don't want to see

that yeah well there's a technique that a couple guys perfected or figured out did

you just buy it in the LLC and then you you sell the LLC to the other guy so if you if you buy a bank

REO which there's not very many of those around today right but back in the day when there was a

lot and I was on the broker side that was the way that those guys did that they just sold the LLC

or they just tied it up you can change the name which the banks didn't like

you know at the end of the day I was always the buffer you know I would kind of because I really just wanted those

guys to talk to me yeah tell me what you're doing so that if you if so that we can put this deal together so that

you can get a house and I can get paid essentially you wanted to be in the room with them correct no yeah and

it didn't realize until in the beginning it was just okay how can I get paid but

then after a while you're like okay no tell me your processes I want to know what you're doing because I want to do

that later on and there was a lot of people that asked me that question too like why don't you

invest Ron because if I was selling 300 houses a year listed wise you know that's a lot of hard work right

to do that many deals you know to do 300 wholesale deals you have to be pretty good at it and you

have a staff you have a big staff if you're doing 300 wholesale deals to sell 300 reos

it wasn't they it wasn't as difficult as it would be to sell 300 wholesale deals

right I was they would always ask me and I would just tell them well you know I came out of being an auto mechanic into

real estate and I got bills to pay I'm just trying to make a living and trying to feed my family and of course the just

as when I hurt my back that forced me into real estate the implosion of the

REO Market forced me into wholesaling so I I'm I'm I'm an entrepreneur I just go

for I can make the cash and I just figure it out because even now with our Market changing it's a lot different

again you know meaning everybody everybody could just breathe in wholesale a house and and list it and

sell it the last couple years now we're kind of back to some you actually got to know what you're doing to sell out yeah

I actually got to know the numbers right you got them yeah and you can't just uh

you know throw something against the law and see if it sticks yeah yeah now I like to do that but I just like I just

reach my hand out and grab it when it falls off the wall that's what I do and you know I've done enough that

understanding what the banks are thinking meaning even from the listening perspective understanding what an

agent's thinking on both ends right because I buy houses too and then put

them on the MLS and sell them and a lot of Realtors you know they don't understand uh you know what that

looks like as a you know like you just bought that house the public record says it's John Smith and I said well I'm

buying it well how much did you pay I'm not going to tell you that right then they figure it out and you know if I'm

selling it for 75 and just paid 50. they'll say well you can't do that and I said well yeah I can and don't you wish

it were me like hey you could do exactly what I'm doing I don't see the problem yeah don't

count my money by the way you know count yours not mine right and some you know what sometimes the thing is is that we

we do try different things because like we do push the envelope but we do it methodically you know and and it's like

okay we're not just gonna uh hope and pray because that's not a good business

strategy no we're doing a methodical we know the num the number we're asking for

is a little bit too high for you know what it is but if we're going for a

homeowner like if you're putting on the market and you're actually going for a homeowner we may be able to get that

you know and a lot of times even our wholesale deals that we don't take down yeah you know for more for the better

part of my beginning of my career we used to buy everything yeah I'll put it on the MLS we'll you know covet taught

us how to be better taught me how to be a better wholesaler a true and so putting it on the MLS when you're

not the owner is a is a technique that you have to be good at yep because when

that agent's calling you going well you know what is a wholesale deal how come I can't you just take a sign off on my

contract so then you have to explain to them why yeah that your contract started

to Ball but here's the dock you need to sign and here's what's happening and it has to be cash got it well why is that

to be cash well let me tell you why um there is a high level technique to get a mortgage buyer into that and that

could be a you know we can talk about that if you'd like um but generally when you when you put

it on the MLS you got to tell the agent that you have what we call Equitable interest yep right you need to do that

otherwise because you can't represent the fact that you're this that you're working for the seller because you are

not right the fiduciaries to yourself so you have to that agent needs to know

that that they're negotiating with me as the agent or as the you know the

contract holder and that's what I'm selling and I am going to pay you EU commission I'm going to do that because

it's not unless I have to yeah you're going to come down so I'm not cutting you out of the deal or the broker or

anything I want a lot of and a lot of Agents they're all they're concerned with is how am I going to get paid right

for sure that's it yeah so I mean we all should be concerned how we're getting

paid but at the same time you know a realtor's fiduciary is not to themselves it's not to their paycheck yeah so that

buyer and or seller I guess in this case it would be the buyer and my fiduciary is not to the seller I don't have a

listing contract with a seller I have a purchase agreement right I don't want to

take your deal I just pull it off the market you're talking to me you're not talking to that seller so so let's break

it down real quick while we're talking about wholesaling explain obviously I'm

a wholesaler so I know what wholesaling is but explain to the people the new people out there it your words exactly

what is wholesaling well a whole a true wholesale is is simply selling a contract not the house

and you have to and you have to make sure that that's what you're putting out there so so to get the seller you have

to outbound Market to them in some way figure out what their stress is there's lots of internal ways meaning online

products to be able to find out and find a stressed seller hasn't paid the taxes the mortgage is

backwards uh code violations water bills all kinds of different ways and uh and

so there's different techniques for that marketing you have to have the right message to them I'm going to call you

right so then when they call you you then have an empathetic voice well how

can you send me this white postcard well it's because I'm interested in your house you're looking to sell yeah I've

been thinking about it and so what how does it work I say well what we're going to do is come look at your house we're

going to determine what we can sell it for if we fix it I'm going to figure out what it needs to

update and then we're going to you know give you a fair offer based on the repaired value minus the repairs and

then me making some money to feed my family Mr seller don't you want to feed your family yes I want to feed mine too

that's how I do it years before here's how the math works out right so then after you get a

contract then you go out and Market that contract to the investor world

okay for a real buyers list right but everybody tries to go get first and not

the deal you know the kind of a side note you guys that are trying to start off go find deals don't go find buyers the

buyers will come out if you have a deal the buyers will find you it's like it's like the chicken or the

egg buyers you you will find buyers if it's a good deal but you're not going to

uh find sellers when you have buyers like that just doesn't happen so at the

end of the day you're taking you execute that contract you're the buyer yep then Market that contract to a list you can

do that on Facebook you can reach out to me I got a list you can send it to my list for a fee we all have ways to do it

you just call me say maybe I want to buy it but here on I got this deal and so on so what do you think and if I'm

interested or I know a buyer you know maybe I bring that buyer and we do what you're what you're very good at is jving

yes right yeah so jvian is a very is a very bona fide valid technique of

sharing in the wealth instead of hoarding the wealth and you make sure

that you have a contract you know don't just go out there and throw it into the world and say I got this seller I

talked to and he might sell and here's the number you know you want to have something that you can actually sell to

somebody else and that's a very important thing out

there if you do not have it under contract you should not be advertising

it period now I have as a wholesaler I have a few pocket buyers that I go to

that I'm talking to a seller we're in negotiations and I sent it off to one of my buyers

that's not me marketing it out to the world that's sending into a few trusted buyers that I trust not to go behind my

back and steal the deal right you know I don't recommend that for anybody to

do I always recommend if you're going to put it on put it in front of a buyer I

have it under contract I even go so far as to bring buyers with me those trusted

buyers is bringing with me on the appointment as a contractor they zip around through the house and

then they leave and then they go down the street do their numbers and text me back the number and then while I'm standing with the seller

I negotiate it backwards and build my fee into it and buy and sell owls all in

the same 10 minutes so I've done that more and I I even got one on one guy that'll actually stand

there with me in the book and be in the negotiation and I trust him that he's looking out

for me he's okay with whatever I come up with so if I come up with a number that may seem to be too high for him then

he's not he's not worried about it it's just not his number right because I'm looking my

my job at the appointment is to make the deal exactly that's my job is to get a

contract yep and and do that truthfully and with Integrity tell them what you're gonna do tell them that you're a

wholesaler and that you you know you're you're this is what you're gonna do and this is why you do it

you know if you're not going to close meaning Mr seller you know this is how I

operate if I don't find the end buyer then we'll have to renegotiate is that okay with you or you can do how I do it

is is uh have hard money guys set up and then you can you can get a better discount if you guarantee the close in

other words your your Spiel to them is to say Mr

seller if you take this deal I will close but my main exit is to wholesale

this and not me be the buyer yeah so at the closing it may not be me a sign in

the papers but the contract that we have is going to be the same number there's no

difference because the buyer on this side pays me for bringing the deal to them and when you're upfront with that

and then when you're calling bringing 10 buyers to the house they don't like what are you doing like why are you calling

me to have appointments why are we having an open house on a Saturday why are all these contractors coming into my

house right yep and then you just all you do is blow up your deal that way if

you're not being you know honest with them and of course when you pull up to the house as a host later don't pull up

in your Escalade there's one thing that I don't

understand like I there's a lot of virtual wholesalers out there that you

know They Don't Really disclose that they're wholesaling which is fine you can do whatever you you like but they're they

only can get people in the house a limited a number of times before they start asking questions

yeah to continue down to you know to answer your question is once you find a buyer and you assign it to them yep you

have a single document that that takes that purchase agreement puts the buyer in between you and the

seller for a fee correct so if you buy it for 50 and you're selling to your guy

for 75 the assignment doc says 25 000. how does the buyer know that it's

equal on the 75. you got to give them the contract in other words because he's going to

honor all of those terms which are him paying the closing costs or whatever you

negotiated with that seller okay so you so you put in your assignment contract

the fee yeah okay I don't hide anything in regards to the buyer and or silver yeah so I don't

hide it but what I do is I put the assignment like for instance if we have

we we got under contracts for a hundred thousand and we're assigning it uh for 115. so I actually put in the assignment

fee in the assignment I put 115 and then the contract is a hundred and I

so the title company just gives me the difference they do the math yeah yeah I

mean I've I've I've never had a buyer bulk at the fee because we negotiate

because they don't know that number up front meaning yeah they don't know what the underlying contract is until it's

over yeah so when I always tell them if they start barking and squealing at me I

say look you got this is your one shot with me if you don't want to do this deal that's

fine but you'll never get another deal from me I I had one I had one guy actually do

that with me and I haven't sold another house yeah

I don't like you know as soon as you start counting my money right more than

likely it's not gonna happen and I had a House in West Bloomfield probably six

seven years ago but I made 90 000 on the wholesale deal and I sent uh I sent the purchase

agreement and the assignment doc to the guy he didn't say a word so that and all that guy you know he's a

very Bonafide buyer so I already knew that he probably wouldn't squawk anyway but he knew not even to not even digest

in it but just signed it and in that particular he actually wholesaled it

again you know we jumped it again you know and there was enough room in

there right yeah you know shame on me in a sense of not getting enough yeah but the other day I'm okay with that so I

needed to be just as cordial to him and the fact that he had another buyer

that up sold it for another 10 right right and it worked out well and that that guy bought lots of houses from me

and we've been obviously in he's passed away since Jeff bitwitz if anybody knows he uh

he's one of the one of the best guys in town and he would he was a lender and everything else as one of the there's a

core guys in in Detroit there's probably 10 12 of us that really kind of play the

circle yeah hi John you know Tommy Desmond Tom harderman and

you know you could go on and on right oh yeah well there's a good there's a good set of players that just do we just do

what we're supposed to so now to kind of get down the roads once you get that assignment you give that to the title

company the title company you know knows what to do with it you need to find it pretty you need to find a title company

that likes assignments because some of them don't and even some of them have recently

have these have decided that they want to disclose to the seller what the fee is before they'll close and I just say

if for some reason the wholesalers or the buyers using that title company because we agree to that

and they do that then we just don't deal I'm not going to tell the seller

when I'm making not on purpose right so at the closing is two statements there's

a seller statement and a buyer statement so neither they don't cross yeah and if you have a good title

company they won't they should not and you should have that um we've had a problem before where uh a

title company accidentally showed the buyer statement to the seller and the seller statement to the buyer and

it was I mean we we got it through it but oh my God yeah yeah typically if I

have a solver I think is going to be kind of squirmish I'll actually go to the closing because I don't generally go to the closing if it's never I've never

been to a closing in two years I've been doing this you probably should go at least to understand it

so I've been in my own closing for my own personal house but that's about it when I was doing

reos we used to go to all of them you know because the bank at the bank found out I didn't go to a closing as their

agent that's a problem yeah so I wasn't going to cut off the hand it was feeding me you know some some when I was doing a

lot of business 05 and 06 it was tough to get there every closing because sometimes we'd

have multiples in a day so I just started selling staff but my point being is there's no reason for you

as a wholesaler if you're jumping jumping the contract there's no reason for you to go right unless you think

that the seller just you know it's a report building thing too you know you you know that's a really because it's

not like a realtor it's not like you're bringing them a gift right like a realtor might do and you're

just there to if you're there it's the support the title girl you know trying to because sometimes

there's an explanation and I have a very good assistant that that is in total communication with the seller right

after the closing and generally I'll call her and have me to kind of get clarification so I'm she's a good buffer

for me and then of course if there's some money issue with that that has to be decided then of course my assistant texts me and asked me the question

um kind of thing yeah so uh Nicole tender said hey guys

how's it going how's it going Nicole and then uh

um Tara Lynn from Facebook also said that a quality buyer wants the

wholesaler to make a lot of money yeah and I caught 100 agree with that

and yeah and then uh trying to see who ah here we go Shyla Johnson

wrote uh so many big players in Detroit seems Seems saturated uh does an

individual wholesale even wholesaler even have a chance before they jump on

all the listings uh list with their robust resources you know

so I'll let you answer that since well it's you know Detroit is a very

residential area and as you point out there's players in

town that we've been doing this a while there's more houses to buy than we can buy we can't buy them all right

supporters don't always like everybody they they they do business with people they like and Trust

so sometimes it's not about the price and of course the the buyers that you're

not the the sellers that you normally might be competing with are calling everybody in town anyway

right so even if you have an online presence and at Google who buys houses they're going to find the top five or

six guys yeah their websites and or we've sent them a postcard or we've

texted them or cold called them or whatever you know so they usually have some stress if there's a stress on their

life somebody's finding that and then if they're at a at a Crossroads themselves then they're Googling so on

on that with somebody who's just starting what would you recommend they

do as far as a marketing channel and going with you know so everybody going

after the same things what would you recommend I mean I have what I would recommend but I want to

hear from you well right now it's working up best for us is just simply texting and you know there's platforms

to do that with uh lead Sherpa patch leads you know there's there's a lot of

you know other kind of uh services that do the texting you need

to make sure you're compliant with the texting and the cold calling yep you need to make sure you're not selling

something because if you're if you're texting and cold calling and you're selling something and you're on that do

not call list that's a violation yeah so there's certain parameters you

need to do I think I think the most effective long term is Direct Mail

because you sent them a postcard the postcard if they're if it's a probate or some other type of thing

where they're eventually going to sell their house that postcard laying on the table with the 20 other ones is still effective yes

so right so they're gonna pick it up sooner or later I tell a story is that we stopped

doing a lot of direct mail roughly around October of 19. we just kind of

stopped we were doing 100 000 a month right up until then so that's a lot and

that's expensive and right so there's you know that's a little bit different process when you do that much mail

but even even and even until to even today we still get a call from that one

of those postcards sitting on somebody's table the last Royal Oak house I did about three months ago came off a

postcard that two other acquisition guys that I was using are no longer with me their photo was on that postcard and

picked it up because she liked it then yeah and wrote a note on there

and she just had some she had some stuff to work through in regards to the state right so she finally decided it was time

to sell so she went through those cards and ours was on top and we put that deal together and uh you

know and then texting what I like about kind of the the main thing that I do is a combination of those two I text that I

get a list I text that with well I skip trace it first right so the

the you get a list of names you then skip Trace those upload the those cell

phone numbers into the system you then take you know do a string of text to them so one of the three things is going

to happen with the text it's either going to get blocked or they're going to tell you to go pound sand don't ever call me again I call them Angry Birds is

what they call those people and or and or this just uh they'll reach back out and say hey you know I want to sell my

house right yep so the ones that get blocked you take them take that list and scrape

it off and then you send them a postcard because you because for some reason

maybe that cell phone is not theirs anymore right like North or they'll block it right

so then when you send them the postcard then you're getting the real touch to them and then a lot of times by the time you

do that because they get a bunch of texts from you and always be transparent on your text tell them who you are don't

be safe don't say just hey I'm looking for houses to buy call me and with no name no nothing they're not going to

call you this is right um so but put your name stuff in there and then you send them the postcard if

it uh because the Verizon phone Verizon system is very is very volatile against

uh those types of texts and the system will block it you know and you can work

around it with a system called twilio but twilio is expensive you have to pay

us you pay you know like a half a half of a half a penny for each text and we

do a thousand a day roughly cost us 20 bucks a day just to send all the textbook along with the platform right

and it attracts it yeah what's important is to track what you're marketing

so you can track the inbound to know what's working and what's not working so the biggest thing is is first

off yes that's 100 you know tracking what we're tracking what you do so you

know what's working what's not working your cost per lead right you know

um but so if somebody didn't have much marketing dollar too much marketing dollars or

anything like that they're just starting off they wanted to get just get a proof of concept at the moment

in my opinion I think a driving for dollars list is

the best way to go now what is a driving for dollars list is a you driving the neighborhood that

you're going now sometimes you can do it virtually but we'll start around your neighborhood wherever you're at and

you're taking down addresses that are in Rundown condition they're look

distressed and now they may not come up on any mainstream list because they may

be all caught up on on their bills and you know or anything like that but so

that's one way I think to get started get the proof of concept

ready and uh then you take that list skip trace it and in my opinion you can

you can text or you can cold call I would recommend cold calling because

that way you don't have to worry about a lot of that stuff but if you're not a some people are texters then do the

texting you know and I think the cold calling gets you a lot of experience of how to talk to a

seller right yes because if you get one that's live and wants to sell then what do you do that's always used to joke

about when I was first a realtor you know you cold call listening and listings right you want to sell your

house you want to sell your house when I sell your house yes you need to know what to say when they say yes because the majority of them are

going to say no right so if you're cold calling to have your I'm not going to call it a script but just have something

in front of you that kind of gives you like an order of questions right right you can ask them because when they say

yes what's the next thing you should ask them well tell me about your story you

know tell me what's up right you don't have to be very what's the matter do you pay your taxes you know that's not a

good thing to say you just people tell me your story why are you looking this up well my grandmother died and you know

the Grandpa's living in there and we just put them into the nursing home and now the family I got two deadbeat

brothers that doesn't want us you know whatever right so but of course while they're talking you need to be typing

someone something or those notes to kind of and then you know I think at first

when you're doing it go to every house you can get into qualifying them is always what you

should do 100 but going there just get the experience of number one figuring

out the value and understanding people's responses to you and of course the gold the Gold's in

the follow-up right we all know that yeah at the time they're not ready when you first touch them you got to keep

calling them and calling them and then build that report so they call you back if it's finally ready so that because if

you're calling them because you saw long grass and tags in the window there's a

lot of other people doing the same thing well yeah yes and I'm gonna say that yes

and no yes there's other people doing the same thing if they're on a list

if they're not on one of those you're behind on your taxes you're

it's a flight ticket or anything like that right if you're not if they're not any of this and the house just looks

wrong down you're gonna be the only one contacting them you know so the only

competition you have is other people doing driving for dollars you know and they make software to do

that it's called deal machine right right yep you can actually send them a postcard right from your car exactly and

of course that's that's a low entry cost too it's really not even that expensive right yeah so first off I want to say hi

to Terry uh Terry Penny uh she said hi guy so

and then uh Nicole tender uh Tedder said do we do uh creative Finance deals

currently okay and 100 do Korean financing oh yeah 100

yeah because you uh you know obviously lease options land contracts sub twos

all kinds of things like that there's all the different techniques to do that and of course that's a question you

should ask them right you should get into the Habit if they say no to your cash Hammer which most of the time they

normally do right off the get-go they never want to take your cash offer unless there's got to be a lot of stress

for them to take it right off the geeko and usually if they take your first offer that just means it's too much it

does exactly so going down the road with the other is always the good thing to do

yeah so and then I'll answer this real quick this was

Kevin uh he asked me uh you know what is my JV business look like on a day-to-day

Kevin if you want to uh get a hold of me privately I'd be happy to talk with you about that my number's here my my emails

floating around the bottom but for the most part you know I I

work with other wholesalers I you know basically you know we come to terms on a deal

whether the assignment fee is 50 50 usually that's what it is

where I bring the buyer if I don't bring the buyer then we don't JV so there there's no

sense of it you know if you bring the buyer and I you know all the stuff that

I did basically means nothing to me so because I didn't do anything I didn't

bring you a buyer I didn't add value you know so the technique that I use for

jvian in a sense is uh is a little more involved on my end meaning especially

new people when they find something that they don't know what to do yeah because if you give that to me and just get out

of the way I'll give you 25 and you've done nothing except give me the address exactly yeah so and sometimes you know

if you want to Shadow me and or my acquisition guy at the appointment that's fine so you can learn I'm all

about the learning yep so I love to and I love to teach meaning like I like to be able to read

into you and give you some feedback on how you're doing it I can remember when you first started

too Randy I remember yeah meeting you a couple years back I remember that yeah yeah hopefully I wasn't too uh green on

that no it was good I told you the other day I thought that you've you know you're you have a humble Spirit you're

learnable and coachable and that's what I look for in anybody that reaches out to me is how coachable

are you yeah you know it makes a difference in being coachable right don't come to

I'm not saying I'm the best guy in town because I am not so I'm in a handful of those but if you come to me and ask me a

question and I think that you're just digging for gold with me I'm probably gonna ignore you on the second round

exactly you can smell it pretty quick you know and and that's one thing that I

actually offer for new people that hey if you want to do where you bring me a

lead I have no problem talking to the seller getting it under contract going from

there in that scenario if we do that then whether you bring the buyer I bring

the buyer we're fully JV so in that scenario

you know I'm adding value because I've had value or JV whether you find the

buyer or I have to find the buyer more than likely I'm going to be finding the buyer anyways so

but I I at least you know I do offer that for new people uh for anybody

actually who wants to do that I had one guy that I actually brought on here

he he was new and he was bringing in leads but he just did not know how to talk to people too well so

you know I would go on the appointment and I would get it under contract I you know I would talk to the

seller we'd get it under contract and then it was actually in one of my one of my buyers end up buying uh purchasing

the property so sometimes sellers look at your age when you're young yeah and you look like a

kid and you are a kid it's difficult to overcome that age I remember when I first started even just doing real

estate in general and I go on a listing appointment and the seller would say well how long you've been doing real

estate uh like two months I always like to kiss a death like they're not going to hire you to list their house oh yeah

there's creative ways to like reframe that in a sense but that's you know for

me I'm old enough and look like I've been weathered and probably can't pay cash for your house right you show up

when you're 18 years old you know jvian or bringing somebody with you is always

a good thing to show that credibility at least at the beginning so you can kind of get your feet wet oh 100 and this

kind of goes back to so I Shayla Johnson uh you know she came through she's

saying sometimes it feels like all the good leads get snatched up before I even start

um but I guess there there's not there are enough deals out there for all of us 100 true that there are enough deals for

all of us and don't feel like they get snatched up I the worst thing you can do is feel

like you're losing on the deal and up your price and then you can it stales and you can you can't sell it

stick to your numbers yeah yeah because you get a reputation of

sending out your deals that are too high people don't even look at your deals every time I've gone out of my formula

and I can pretty much guarantee like every almost every single time I've gone

out of my formula and I'm like well maybe I can push it out there and get a little bit more you know okay and just

just to get the contract it's backfired right yeah it's always backfired so

um 100 I recommend you do that I you know just

stick to your numbers no matter what and it what will happen is is they will if

they don't sell to you they'll it'll come back around you know and if it doesn't there's always another

deal you know so yeah for sure and then

oh yeah uh Kevin we're kind of replied to that and said the deals get snatched

up by people who consistently follow up right that is right

the money is in the follow-up I will tell you that right now just keep

following up so if you're not embarrassed with your

your offer is low enough uh if you're not embarrassed by your offer it was not

low enough yeah that's Terry who said that sometimes you have to be careful with

that too because you like that seller if you really Jam them up and sometimes I

do that on purpose yeah I just don't know you know and if it's a house of fun anyway you know because of some reason

I'd rather get them to say no than me say no for the most part but I'm not opposed to

I just said no to a guy that's got a piece of property on the water on Cass Lake that I just told him I said

I'm not your best buyer and I'm not even your best listing agent because I don't I don't work that kind of you know

seller right or I'm sorry buyer so and I even tell I even tell the

sellers that hey sometimes I may not be your best buyer for this why hey why are

you not putting this on the market right you know well you called me out of the blue that's usually all I get right yeah

and I'm like okay that's fair enough I I understand but you know

if you want that price you're probably going to have to list down the market and it's probably going

to go there I'm gonna have to stick to my price because I got costs associated with

everything that I do and you know the Market's only going down at this moment you know and of course that works to

your advantage too right if that guy you know just gets the deal because he over bid it over yours yep then it doesn't

close who guess who what do you think you're calling exactly we're calling the next guy in line or that they thought

that's credible to now actually close it because they wasted 30 days and you know what and that brings to another point is

is when you do that you stick to your numbers you stick to what you say you're doing you tell them this is the key you

give evidence of why you're lowballing that offer because this property this

property this property sold down the street I'm gonna have to put x amount of dollars into yours in order to get it up

there I'm gonna have to feed my family I'm gonna have to do all that

you know so when you do that now to that buy to that seller you've just

become a creditable person yeah yeah you need to you need to frame your

responses to them you know using their word term low ball

just like just gives me the cringes you know like yeah that's a bad word yeah no

you don't ever want to use the term you lowball order for a discount there you go this or that right

so and somebody that from like negotiating find a guy named Chris Voss

we wrote a book called Never split the difference you read that book and it plays on the psychology of what is what

a seller thinks or you know he he was a an expert uh hostage negotiator hence

the point never split the difference because he couldn't split the difference when he was trying to save somebody's life and right I mean I to this day I

listened to a couple of you know YouTube videos every week and I just learned something from him on how to label it he

calls it yep or you know seems like you're irate right that seems like helps

it kind of frames it a little different for you to their to their mind yeah 100

and I will say another uh another wholesaler in the area that is really

into the the whole psychology is and he was actually on the panel uh at the

Meetup which is on Phillip Lake oh yeah he is I've had him on the channel I'm

gonna have him back on the channel as well since we renamed it but

he is all about the psychology of of all

of it so yeah there's no but it's not always about the price no you know if

you're not like fixated on the price you know the cash Hammer as I like to call it you know get away from that it's

not you know I generally walk through a house and get to it and say okay so what kind of number were you thinking right

and just let them talk a little bit and then kind of maneuver through that sometimes well that's why I called you

know crazy Target price checker kind of person right right you know so usually I

give them a couple more shots at giving up the number before I just give it up and of course I I lowball it in a sense

you have to Anchor it down so we can come up right that's the whole point and usually those kind of people they

usually you don't get to the Middle with them anyway you know when they're really harsh and they're really harsh on the giving them

a number yep usually it's because their pain point isn't isn't hard enough yet in regards to that or they're just when

you're cold calling you get a lot of those guys well give me 500 000 I'll sell to you right and of course the

houses were too right they'll always say that to you especially with texting I

get that back so many times and uh so you just have to you have to

have the thick skin with that and yeah get in the door with them yeah walk with

them is BET is the experience you need to do at the beginning Yeah because sometimes

they say yes even though they'll tell you they want 500 and you get there and you're saying well it looks more like it

feels more like a 250 to me they'll say yeah I was kind of thinking more like three anyway right you just

all of a sudden you think well what what the heck yeah but you told me five right so you didn't if you hadn't gone yep to

it you wouldn't have known you know you wouldn't have known exactly and that and that's the thing like if

you're a new wholesaler uh you need to you need to get the experience of

talking with them going to the appointments if you're on the phone with them that's great you know get that

experience but also be in person you know you can only get so far of

being with being on the phone with somebody there's a lot of these virtual wholesalers who who do this full-time

virtually and all over the phone and that's great but

you know in my opinion you need to be face to face yeah you know you'll get

more you'll get better deals and close more exactly you're standing in front of them you know I think and of course the

virtuals those those their technique is is only set up just to get contracts

right and I I hope that most of them tell them that's the seller that's what they're doing

you know because sometimes I get because I get those virtual guys that call me all the time yep you know they're from

Arizona or someplace not in Michigan they Google and find me and they they

call up and say do you like co-host sale so I always know that's what it is when I get that get that question yeah well

of course I do you got it under contract well I'm just kind of shopping at old and call me back when you have the

contract yep I had one call me today from in town she's from Michigan she has

this house and she she wanted to know if I co-host say oh I said yes send me that you got it under contract yes I said

well send me the details and sent me four photos and no price like I'm thinking did you I don't

understand that's a big thing with the four photos

like yeah you should be having the price but and we I hate I hate it when they

have like two photos or four photos and they expect they expect you to be able

to sell the property on that not to mention that they got those photos from the seller yeah they didn't do it

themselves they got a color and they don't you know so tell us tell her to take a photo of the front of the house

just give me a front house like the one I got all interior stuff like I had to

look it up on Google to figure out what it looked like yeah so Kevin uh actually at uh asked uh

Ron how to how do you decide whether you go on the appointment versus offer over the phone

well why I'm on the phone with them listening to them I just do a quick I do a quick value search generally I use

Zillow it's easy it's quick it's usually close these days because zillow's

numbers are their system has a lot of historical data now which is how their

algorithm Works in regards to getting numbers yeah you know in a lot of ways because I've done so much business I

kind of can I can kind of tell if zillow's like all wet but even even zillow's sold data comes off our MLS

right so if it's close and around the property then you can get a ballpark and

then you kind of gauge their you know their price checker system right or they just yeah

or are they really serious about possibly selling their house and you gotta

I don't think there's a true hard answer to that question it's more being able to smell it meaning yeah no and

understand their motivation you know usually like somebody says I'm coming

into town my mom dad passed away I'll be there for three days and I'm I'm gonna have four people come through the house

do you want to come and they'll usually say I'm having an open house right so I I'll go to the open house you

just can't hurt and usually I go at the end so that everybody else has been first because they're not going to sign

a contract as much as your heart Adam at the beginning they're not going to sign it

so going in last as much as you can is always the best bet in my opinion you

don't want to be the first guy in the door because they'll never sign with you if they got three other appointments they just won't

that is true yeah it's they won't sign the first one because they'll you know

so if they say that they're having an open house yeah I come right and if you say

something to the fact that when I walk out the door the offer is not valid anymore they're not calling you because

that's a pressure tactic that car sales venues you know you get bombarded all

day long with that kind of stuff on the radio and television you know just just don't do it if your

number's right you just wait it out yeah so usually when I how I respond to that is I say

hey my offer is good for a little while I'm just letting you know the Market's changing yeah for sure every month

every week so you know if you call me back I'm I may have to if it's a some

time difference I'm gonna have to rerun the numbers but for the most part I'll

try to stay around the same area so I'm just keep in mind this Market's going

down and you don't want to catch a falling knife and you need to be out you need to use that at your advantage yeah

about the market falling like if you wait a couple more and that's that's an honest response yeah not like you're

making it up exactly hey you know 60 days from now I may have to reevaluate that number

you know if you're really serious about selling it today at this number then we need to do this now because as a

wholesaler you're looking about velocity anyway right if you contract today you're just gonna hopefully sell it

tomorrow that's what your that's the point of what you do yeah you know so you know unlike a rehabber which is why

you have to in a falling market like we have now you need to build in that extra

little piece for the rehab guy because he's the one the guy you're selling it to he's the one that's gonna have to be

out 90 days 120 days and he's worried which is why a lot of the rehabbers are

hunkered down a lot of the guys that buy a lot of houses now they're just finishing up their inventory

because because they don't want to buy yeah there's a lot of them right now that if they do buy uh flips they need

them in a severe discount right um so a lot of people are buying right

now are are buying holds where they want to add that value so that they have that

extra equity but they're gonna need a still a decent discount you know and of course you've

got the one-off guys too that yeah but they just need to keep their Crews busy you know those are the best ones because

they'll pay more exactly because they just want to keep their Crews moving and they'll make 15 000 instead of 30. you

know so which you know I just do this like really sorry you know I'm sorry I couldn't get

it cheap enough for you right so yeah so with that being said you know

how are you finding your buyers now with your experience and everything

you I mean I'm sure you have buyers coming to you and and you go to network

meetups and you do a lot of Outreach and things like that but say you were to

have to start over Okay how would you go about finding your buyers in today's

world Facebook is a great place to find buyers you know we have a very good Facebook page in Detroit that is very uh

honest you know sometimes brutally honest yes you know so and I'm okay with that and I

do what I do I've got a track record of buying good out getting good deals and how do

you how do you differentiate in the Facebook posts

somebody who's a buyer versus another wholesaler trying to J like daisy chain

the deal ah I don't know if there's a science to

that there's an art to smelling somebody you know asking you know

you know I don't Facebook a lot of deals because my list is pretty good right wait and my list is very

intuitive like I the system I use to blast that list

I can tell who opens the email and how quickly you know my experience as of late is the

you know usually within the first 10 15 minutes whoever's going to open opens it

and then if and if Jessica my assistant doesn't get a call back from one of those then you know the price isn't that

good it doesn't mean it's not good it just means that the guys that are always looking at my list they just don't want

it right and recently you know I've been because I'm a real estate broker I have

access to the MLS so I have access to all the Realtors emails and stuff I've been I've got a

list of realtors that have investors and that's kind of like my third tier

send is ascendant to the Realtors because then I got to pay a commission to do that or I just tell them right up

front that I'm not paying the commission in general buyer yeah and of course

if I send it to them well I'm going to pay the commission because I'm I'm not desperate but I'm looking for the buyer

right and the house I had in Roseville and patao that's how I you know I was

having a hard time wholesaling it I end up buying it and then still having a hard time when I put it on the MLS I

sent it to a list of Realtors and I got to it was an investor guy that just happened to be on my list and meaning

the meaning the realtor list and he bought it right the upside to that is

he's buying it for himself so he doesn't want the commission anyway so it's just like me selling it's actually better for

me to sell it to a realtor with no Commission because then I'm still paying the closing costs again but I'm not

paying the three percent on the on the listing or on the on the buyer commission side got it yeah and I always ask them too if

they're Realtors buying them for themselves I always ask them are you taking the commission or not because that has a lot to do with my calendar

I mean when I counter them I take that into consideration what they're doing you know how they're going to take the

commission or not right so

how do you [Music] how are you working with uh agents

besides just paying them the commission have you as far as on the acquisition side do you

reach out to them to you know try to get their off-market deals or anything like that sometimes I do it's not I think

it's more it's becoming more a technique now because the market is

slipping so getting on the MLS to figure out what property has been on the market for 90 days plus and we're the you know

where the numbers are you know the MLS is very good at data

so you can figure out where all the cash buyers are buying by simply doing a search for cat of cash sales in the last

30 days so then you can look up and get a buyer's list from that or the realtors that sold in that house send them an

email and say hey I got this property

or you know you can kind of work backwards the

square foot number so in other words if you look at all the pretty houses that sold let's say they sold for 100 bucks

of course the general formula is 65 minus repairs right so right not that

difficult to then go look up all the listings that are 65 percent of 100 a

foot right and find the listing that way even if it's an expired one

yeah if it's expired because and then trying to you obviously need to figure out whether it's sold or not because a

lot of times it doesn't sell in the MLS but it was there just look at the public record to see if there's a d transfer

and call that call that particular skip Trace them and call them don't necessarily call the realtor first

because you don't want to you don't want to have to put yourself in the position not to pay the realtor but if that's the

only way you can find that seller then do it yep I know a lot of Realtors is from all the reos I sold so a lot of

guys that have investor friends I know the ones that are still in the business

um and there's a handful of guys that used to do what I do some of them still do it in regards to

because there's a handful of them out there um so I build off of those relationships for years just as you you knew who I was

when you first met me yeah you know I've been around a while so and I haven't hopefully I have a good reputation of

doing what's right and not barking at you too loud or biting you know sometimes if I if I bit you that's

because you deserved it first time and that's one thing is is that if somebody

like Ron I or any of the bigger you know they if they if they

gripe at you about something or you gotta you better pay attention to it and

you better re-analyze what it is you're doing because I've done that before

and it's funny because you know I was on the Facebook group that you were talking about and and I

looked at that somebody had a wholesale deal and I'm like I I think it was like for he's trying to

sell it for 40 Grand it was one in Detroit and and

um I go I commented on there like dude I tried selling this for 25 Grand and I

got no traction period like blah blah blah and Todd you know one of the first guys

that I had jv'd with private messaged me said don't do that

right he's like you don't need there's no reason you need to call out people like that you don't want to be that guy

all it does is show everybody else what you're like exactly right so you don't even if that's what you're thinking

don't yeah put it under and you'll learn right meaning yep the good guys that are

going to stick around they learn how to react and how to how to have some in Tech and it's not even in a type of

issue it's just being a good person yeah you know don't argue and little people

just do what you're gonna do you know and there's a couple people that do that and it's like now I understand why not

to and there's not and so now if they come to me privately and ask me my

opinion I'll give them for sure but the whole thing is you get more bees with honey than you do vinegar exactly it's

it's true it's true in every in every aspect it's gonna be nice about it so now with our Facebook group you know

Metro Detroit off-market Real Estate Group we're trying to add value as much as much as we can we we're by doing

these lives uh by bringing people on like you and and showing you know that

you know we are trying to make the group better as well and we're trying to make

uh you know I'm trying to make it where the I you know all the scammers and and

all trying to make it not a seem I want people posting deals in there you know I

want to see the deals that's a full-time job by the way yeah so that is it's

definitely so if you've been kicked out because you've posted too many of your advertisements you know or usually if

it's just that I'll just delete the post but if you consistently do it then then I ban you from the group but for

the most part you know how many people you got in that group now so we're up to about 2500

right now yeah oh good that's good that's you only been doing it for a couple months right uh since April yeah

so that's good that's a that's a good engagement for sure yeah yeah so which is yeah it's it's good and I can't I

I'm happy with the engagement that we have I have a goal of 5 000 by the end

of the year okay so I think we I think we can make it you know

um and I think by us doing me doing this every week and you know kind of bring

some some good awareness hopefully you know yeah [Music] so but I'm out there trying you know at

the investor meetups trying to do as much as possible actually the one that is this

Thursday we won't I won't be able to go to because I'm out of town but the

the the one at mcv's Pub yes but

you know anybody who does by any means who you know if you're local to the area

go to all the meetups more than likely you'll see Ron there say hi to him you

know and things like that so uh who was

who's the one I say so Kevin sit put in here he said another great sales book is you can't teach a kid to ride a bike uh

at a seminar uh it's for sales training and works perfect for a wholesale

process so we're good okay but what was the name of the book

that that you were talking about never split the difference is that the name of the book yes yeah okay so the first boss

was the author ized uh so breathe that is the name of

the book I believe that's what you're asking yeah he has a he has a YouTube channel called uh Black Swan

that has all kinds of good content free oh that's awesome yeah it's it's a

watch it a lot in the car when I'm driving or not watch it of course I don't watch it I listen to it

but it's a very good YouTube channel it actually shows up on my home page all the time because I watch it so much

but it's a great content about psychology of sales you know how to the latest one I just

got you know it's better to get no answers than a yes answer yeah because they're always the answer like think

about that for a second you've got this person who's been ghosting you right you ask them 20 times hey did you

sell your house did you sell your house so when they find you so the next question instead of saying it like that

you say like I bet you didn't sell a house did you right yep they I it works like yeah yeah

I did sell it or no I didn't sell it and then of course you so you get them to engage you again which is really the key

so that so that Steve train has a uh script and in her and in his script you

need to get their attention within the first 30 seconds and in his script he goes hey I don't

suppose you have time to talk about your property on blah blah blah right like literally right you get the no answer

instead of saying got a minute right yeah because generally they won't respond or listen if they say no

that means they really say no but if you say I bet you don't have enough time for me for a minute do you right right so

and they're like what do you want to know about right you know so right now I'm waiting for

people to start using that on me and we're kind of catching into it right because I'm you know sometimes I can be

baited into things for sure and not even realize it you know yeah 100 so

so with that being said you know you know anybody who's watching here whether

you're on here live or you're watching on the replay you know what is your plans for the

future and then how can we help maybe move you towards those plans well I

think that I'm trying to kind of maybe switch up my thought you know my wholesale plan

wholesale wholesaling pot you know pays my bills yep you know kind of thing and

I've been doing it long enough that it doesn't thrill me as much you know Gary Keller talks about and I used to be a

Keller Williams agent talks about an entrepreneur gets Restless about every 10 years yeah I think back to my life as

a mechanic at about the 10 12 year mark I was Restless which led me to get hurting my back which led me to real

estate I was an REO broker for about 10. okay wholesaling for about 12. so it's

like I'm ready to kind of make a make a level up in some way so I'm trying to

transition out of that into more you know a lot of guys are running at multi-families

I think that I'm you know trying to maybe look for a large portfolios as singles from from some tired landlords

yep being able to get good at that acquisition side and analyzing it

I'm in the process of underwriting one now and I've learned so much in the last two three weeks on how to look at

that yeah see it and how to how to do the numbers because I'm so used to the

mail right yep arv times 65 minus repairs that's been doing that I can do

that in my sleep so doing it with a with with income producing assets is a different animal

for me I've done it before but I'm not at a high level yeah so you know if you

if you come across the landlord who's got 20 30 houses that he's just trying to unload because he's ready to get out

of the business and he's looking to take turns you know land contract or seller

financing of some sort I'm all ears I'm very good at

you know you know deal structure you know especially with seller financing

and if you come across deals with sellers that you know you can't pay that much cash

and you need some help to figure out how to buy that house you know with some creative financing give me a shout

I guess I could have probably put my cell phone number up there I didn't think that you would do that but or you

could do that yeah reach out to me at 586 413

-6190 that's my cell phone bye basic

413-6190 you texted me and said Hey Ron got a minute just if I don't if we've never met or

whatever just remind me in your name and I'll tell you when I can call you back have a conversation I have a calendarly

link you know that I can send to you that has my calendar for a 30 minute free

consultation I'll send that I can send that to you if I'm busy for the next day or so and we can set up a modified time

to meet or to talk on the phone you know kind of thing if you want me to go on an appointment with you I have

another link for that that sets it all up gives me all the details if I go with you it's going to cost

you half the deal you know if I go with you in the house and talk about it it's going to cost you half your com your fee

that's I think that's fair and so I mean at the end of the day

to answer your question I'm trying to transition into some more you know maybe wholesaling those

portfolios you know which I'm very good at wholesaling obviously yep you know to

get bigger to get bigger fees with less work right so you're looking to wholesale the bigger deals not

necessarily keep them for yourself well it depends it just yeah it just depends on the deal yeah and I've got I've got

an agenda to collect some cash you know I've got some I've got some baggage to take care of that I'm trying

to you know glean that off quickly it's easier to if you can get a hundred thousand dollar commission or a fee it

goes quicker than selling a ton of them right yep so that's kind of my agenda initially but I would like to get some

cash flow I'm not a I'm not a Bonafide cash flow guy but I can see the value in

it you know in regards to cash flow every month and you know looking at things from purely like how much do I

make in a month as opposed to the cap rate you know because it does matter you know if you if you have 100 houses and

you make 200 Grand a month and the values are lower high there's a whole

different way to look at things yeah also the depreciation as well so and and

not to add to the way to do I'm I'm also looking to get into some assisted living facilities meaning okay like six to ten

beds as opposed not necessarily the big stuff yeah it seems the bigger stuff is

more memory care and medical end of life kind of stuff that's not what I'm interested in I'm more interested in

like foster care where you have six to ten beds in a house and a neighborhood

and they have their own caregivers and things like that I'd like to find some properties like I don't want to be the

operator I want to own the real estate and Subway the operator you don't want it to be

like a 10 unit apartment building you more want it to be like a house with 10 bedrooms or two houses with five

bedrooms each you know yeah and of course there's a very specific look to an assisted living house right they're

usually on slabs you don't need a basement and a house like that they usually have big circle driveways for

all the parking a lot of times they're built side by side so that you can have more beds with less with less exposure

in a sense right to have a big 10-bit building is a different animal than uh

two six beds and the licensing is different and the stuff you have to do is different

and so but my point is is I'm I'm trying to learn how to do the assisted living and the analyze big portfolios so I'm on

the hunt to learn that well so that I can kind of I can take the wholesale

business and hand it off to you know some staff I have that just pays the bills and gives us a decent you know

that's awesome passive stuff you know I'm I'm looking more for the wholesaling side to be the passive thing not the not

the rentals at the moment that's kind of where I'm at yeah so I'm I'm trying to

learn more about how to underwrite a apartment buildings yeah

it's hard to do that it's it's very hard and everyone seems to be different and

it's all area based as well you know like you know what I might pay per door

in Royal Oak is going to be different way it's going to be in White Lake for sure 100 so yeah

it's kind of like okay well how do you figure that out you know there's not too many comps you know so hope well

there's I mean comps for uh multi-family stuff that's not you're not going to find a comp it's all income based yeah

so how much does it make based on your cash in exactly I'm trying to learn all that you know

like we learned at that meetup on Saturday yeah he uses a 10 cash on cash return instead of a cap rate yeah so you

got to do one or the other you have to be able to evaluate that property's value and of course at the end of the

day what you want to do is get money out right you buy the discount fix it

and then refi it out to get your money back out with some cheaper long-term financing for it to cash flow right

that's the yeah the whole process that's what you do yeah or if you do that or if you find

you know somebody who's willing you know what I'll give you your price if you do the seller finance deal yeah for

sure yeah you know where I don't have to do that I don't have to refinance you out and we just give you you give me the

terms that I want you know right so and that's an art negotiating stuff like that it's a whole different thing than

standing in front of a stressed out seller family house it's just different

it's a different sophistication to that seller when they own Apartments you know because they didn't get that

apartment building because they're a regular homeowner right they have right sophistication to them already

and the people who do that mainly they actually know what seller financing is

and they do you know they're and they have a specific goal whether they're choosing not to do it or to do it is

because maybe they need to get into something else you know right so for cash another project for sure exactly

yep you know so you know so uh that's awesome we can you

you know we can put out there like however they can get a hold of you say your

number again just so that people can uh get a hold of you five eight six

four one three six one nine zero okay my email address

is Ron Erwin at waymark homes.com okay I prefer you text them to

email or maybe you can text me that you emailed me I get a lot of email because it's

just coming and going and every couple months I just unsubscribed to 30 emails

in a day because it just kind of gets out of hand so I would rather generally if on my phone I sit down at

night and go through my phone and if there's a text I didn't respond to then I do

all right because it's just kind of easier gotcha and I learned just recently I learned it on an iPhone you

can actually take the text and make it unread did you know that yeah yeah I

was like that was like my final week

because sometimes I just not read it because I how do you unread it or read it but I realize that you can like hold

it down the little menu comes up and this is red yeah just like your email

and you can actually put people in a like a in a bubble so like say you

haven't talked to somebody in a way in a while but they're the main people you talk to be but you had like 20 different

texts you can keep them up at the top like for instance your wife your if they

call if they call that phone you can keep them up at the top and then any text message or anything like

that it'll just show the notification there my wife had to teach me that

I have special tones for my wife and my kids yeah you know because so I don't because of the normal one I just someone

ignore it initially gotcha it's because it's just always going off but when I hear that the one from my

wife then I usually look at the phone right you know because she's obviously texting me for a reason

awesome so if you're watching uh live or you're watching the replay I

want you to comment below and tell me whether this add value to you I if you

like more videos like this we're gonna do these type of videos every single week

um also I want to know what type other type of videos you're doing you want us to do and and we'll go from there now

so with that being said I really appreciate you Ronnie coming on here with us uh and giving us your wealth of

knowledge so you know any any last words

uh for the audience out there

just don't be afraid to reach out to me I think sometimes like you know I'm not

calling myself a pretty girl but sometimes a pretty girl never gets talked to you because you're so pretty right you know don't be afraid to come

up to me like I don't think I'm going to be at otterman's meeting on Thursday yep

I think I have uh or something else I already I can't think of it now but I won't be there but if up to if you see

me at a meeting and you want to you haven't met before just come up to me and tell me who you are what you do and

if there's a way I can help or we help each other you know text me you know if you know

I'll generally respond to you and don't think you're bothering me if you retext me right because sometimes it just gets

buried in there and I don't do it on purpose at least I try not to right you know

so so Terry Terry asked about the Meetup and on Thursday at mcv's Pub in Troy 18

under 18 and uh Rochester Road 18 and Rochester and they had it's it starts at 6 30

but you get there right around six and maybe get some food and then it should all it is is a meet and greet and

there's no speakers or anything like that it's just a meet and greet so it I

actually really like those type of meetups and I'm actually I'm in talks

with trying to talk with some other people about creating my own Meetup

um you know either that or doing an event just a big event yeah for sure wow

um but it's still just in the talking stages at the moment so

um but if I there's two different sides to that whether we do a meet up or whether we do

a full out event where I have like I bring like 10 people out to speak and so

on and so forth so yeah back last reminds me back last March I did a eight

hour boot camp wholesaling boot camp that I have eight hours of video

um if you reach out to me I'll give you a pay link and you can pay me because

I'm kind of reselling it okay and uh so if you just reach out to me through that

text and say hey Ryan can I have that you know we'll go back and forth uh I won't disclose the price here just

because I don't if I don't mind um but uh if you reach out to me that

way I'll you know just send you the Dropbox pay me

um and I've been thinking about you know if I haven't really kind of disclosed this to anybody but it's doing like a uh

uh like a role-playing class yeah right so we're you know I've got

hundreds of hours of audio of recorded phone calls with sellers that could be

very beneficial and we just sit in a room on this role play me be the mean seller and you be

the you know the the new wholesaler and let's talk about it that's one thing that Todd Chun I did with Todd Chun was

it's a boiler room yeah Todd was good at that you know he

doesn't do that so much anymore but yeah well he's calling people yeah he does it

with his with his students oh okay he does it with his students he just saves it for with his students for versus

everybody yeah so um you know but that's something

definitely I think that adds value and um if you want to do something like that

I I'd definitely be interested in uh working something with you and then we

can charge a fee to come in there and you know be a a Saturday class or

something like that yeah the boot camp I did I actually fed them

and it was cheap the room was cheap and the lady made the food and subs and it was it was a good

and got eight hours of content on YouTube and uh a zoom call or a zoom

link that got recorded So but anyway yeah just reach out to me yep we'll see and then I'll just we'll

talk about it and then Terry asks uh the group that we're talking about it's a

metro Detroit Real Estate Investors Group that's the Meetup for that so

but just to let you know on that and you know hey we're talking about making

new things doing new things and and you know we'll just keep uh you know keep

looking looking out on our Facebook group as well as anything that we post out and we'll keep you guys informed on

what we come up with so as well as obviously we're here every

week so I'm happy to you know obviously as we announce it we're gonna share it

here probably here first so uh you know Charles I appreciate you watching every

week and you know he said I he watches live and always and he said thanks Ron

for pouring her for pouring into us so you know

but we really appreciate it and I hope you guys had you know got some

great information out of this and we'll see you next week uh on the next broadcast

all right all right bye-bye yay

Real Estate Talk w/ Randy Stedwell Episode #2 | Michael Hasso on his Real Estate Journey! →

On episode #2 of Real Estate talk with Randy Stedwell, We are having Michael Hasso the founder and CEO of Inheritance Capital. Prior to starting Inheritance Capital, Michael spent 5 years in full-time ministry on college campuses. We will talk about how he got started in real estate and how he made the transition from Ministry college to Real Estate.

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

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Hey everybody how's it going out there in YouTube land and out there at Metro

Detroit off-market Real Estate Group so what I'm doing here is I'm just kind of

getting set up real quick because uh here we go

all right so today we have a special special occasion

a special uh guest Michael Hassell and

his awesome guy awesome flipper like you know I've had the the pleasure of

actually meeting him when I'm out there networking um so I really want to say thank you for

him coming on um but to get to get things started you

are this is real estate talk with Randy stedwell we are here on YouTube we are

also here on uh Metro Detroit off-market Real Estate Group okay on Facebook so

come watch us there if you have not subscribed on YouTube watch us on

YouTube and hit the Subscribe like all that good stuff so with any further Ado

I'm gonna have uh Michael hasso and come

bring him on and then if you have any questions during this whole thing ask

them in the comments put them down in the comments we will uh we'll answer

them as we go and go from there so uh you bring in Michael how's it going

or is it Mike or Michael um Michael Michael all right so

Michael how's it how are you doing today everything everything good doing well doing well yeah just staying

busy lots of flips going right now and stuff so that that's what I like to hear

you know we want to and at some point I don't know if you feel comfortable with

breaking down a deal or anything like that that's up to you um but I think I think some people would

like to whether it be a past deal that you no longer do anything so

um yeah and it could be uh one of the most frustrating deals or it could and

or the most profitable whichever you prefer or both yeah so I've actually got

two things for for everyone watching today one is going to be my worst deal ever oh okay and then the second one

will be actually a deal that I have that I'm looking to find a buyer for so

awesome so all right so let's get this started with you know first off who are you what

do you do and you know let's talk about you for a little bit before we get into

how you became really got in real estate yeah so

um I'm I'm originally from like Northern Michigan um pink hunting area it's a small town

just north of basin and so I I grew up on a farm stuff like

that and part of my background that I mean it kind of relates to real estate

in a way but like okay I'll say for my parents um they add some rentals and stuff like

that but it was more of like I'll say they were they were more like accidental landlords

okay houses that um you know maybe it was like a family

member that passed or it was uh yeah you know a house that they saw a crazy deal on or whatever you know those sorts so

it was it was more like um accidental landlords as far as real estate goes

um but it it definitely set the groundwork I'll say years before

so that's that's awesome so you know they your parents Inherited property you

said and that's how they became landlords kind of like accidental yeah so

um so my dad is well he just recently retired from farming

uh and so what has happened um at times there's you know pieces of

property where sometimes there's a house attached or or whatever or it's own all

the Farmland around and there's one house there you know so for various

reasons they they ended up picking up some you know residential real estate

and stuff like that okay so so yeah that would make their main thing

um like for me that's that's my full-time job right now is flipping houses and

so that's awesome yeah so so that's why we should be listening because you're in

the trenches you're doing it and you know you're you're out here making all

the mistakes and here to tell us about it so we don't make them right yeah absolutely yeah all right so

um you know my work deal that I'm gonna attack exactly because you always learn

more from the worst deals than the best deals like no one no one really wants to go on here and hear about like oh the

best deal ever that you know it was so easy and I made you know whatever

I have learned more than uh more from any from all my I've learned at least

one thing from all my deals even the one that went the smoothest

I also learned not to expect that so but for the most part you know you

have to learn something from every deal no matter what yeah yeah so tell me a little bit about

before we get into your worst deal um tell me a little bit about you know

your past and how you got into real estate did you just wake up one day and be like I want to start flipping horses

uh no it was it was a much longer Journey than that I would say the first

thing that kind of really piqued my interest around real estate investing in particular was the classic answer Rich

Dad Poor Dad I read that when I was

like end of high school early college something like that

and I just found it fascinating like I mean I knew from a pretty young age that I wanted to be in business that I wanted

to be an entrepreneur um I didn't realize it was going to be real estate

um that definitely attracted me to it and helped me to see a whole nother side of

it and I think especially like um just the scalability and how the

wealthy use their money and use um real estate as a vehicle to grow their wealth grow their income

I mean I think that was huge for me but from the time I read it to the time

um I actually started real estate and investing it was I don't know maybe 10 years or so

um because I I actually I actually didn't know anyone that was

doing real estate at a high level okay basically everyone I knew growing up

because my my parents had lots of friends that you know owned one or two rentals that sort of thing

um which is good yeah what you know certainly not something that you can live off or

become like you know really wealthy if you just having two or three you know

you're not gonna get you're not going to get rich off of one or two rentals you know I don't care where you are what

you're doing you're not going to get rich off one or two rentals so yeah unless it's a massive multi-family or

cute I mean and even then you're not gonna get rich you'll just be able to live off of it

you know yep yeah exactly so that was like I think that was like the

big um the big turning point for me in reading that book and kind of like sewed the

seed for later that was that I realized oh this can be done at a much higher level

and so somewhere in between there um my investing Journey actually started

with stack investing um okay which is probably unusual I haven't really clear

to any other real estate investor that said that person well

technically I kind of did that I started with stocks before I got into real

estate okay so now I lost a lot of money in stocks and then got new real estate

yeah but yeah so yeah for me so I get I got started

investing in stacks and I was just I was just interested in investing in general how

do I grow my money how do I multiply it how do I um buy back my freedom you know yeah yes

and so like um I did I did pretty well with stack investing and I it's something I still

enjoy but one of the things that um was key for me in making my decision

to pursue real estate was one I was listening to you know like some of

the best uh one of the best stack investors that I

knew you know just kind of like how people follow like Warren Buffett or you know yeah high level investors

and they were all saying how like well yeah I do stacks but like I invest in real estate

like I do stacks but I have apartment buildings or you know whatever yeah it

was like interesting so all these like top-notch

um stack investors they're all also in real estate and I was like

what they're doing really well in the stock market so why would they be in real estate so it it like got me thinking and I actually

saw this very interesting article um where it had like the average returns

over like 150 years comparing real estate to stocks

okay 150 year average guess what Real Estate One

100 yes real estate averaged I think one or two

percent more over that time on average which means like you know if you ever

look at any of those graphs that like uh you know financial advisor 401K whatever

that they show but like if you if you compare those returns and you adjust it by one percent

up or down over the long haul that that can make the difference of Millions

you know so anyway all all of these things were kind

of going through my mind so I was just like really interested in investing and real estate was kind of like The Next

Step It was kind of Uncharted Territory for me um okay and it was I was really really

interested so I started you know sort of looking for for opportunities as

far as like okay well where do I start like I don't I didn't like I I had never heard of wholesaling

the only thing that I really knew of in real estate was um either landlord for like single

family or flipping what I didn't know anyone that was flipping I knew some people that had

single family but it wasn't like scaled by any means yeah and I didn't know

anyone that had any large multi-family so I had like almost no connection

really to really right so that was an interesting journey in

itself and so but anyway so my my wife and I

though both had a desire to pursue real estate her um her parents as well like kind of

dabbling in the small multi-family and stuff like that yeah and

and so anyway anyway some somewhere along the way um we ended up attending a real estate

seminar um ended up basically how we got into real estate was

um through the Rich Dad education company mm-hmm um and so you know we

we went through that and honestly it was um it was just great like we we learned a

lot in a very short period of time so so at the Rich Dad

um you know education community that now right now I know like he made a whole

business out of that book and this whole series like he made a huge he still does

it today uh Robert Kiyosaki as a the Rich Dad podcast

um you know so he's he's constantly out there and I have a small yellow YouTube

channel but if for some reason he's watching I'd love to have you on here Robert

but yeah it changed your life so that that book and and his education really changed

their life yeah because like I mean there's there's a lot of different

Pathways that people take into real estate but I like I don't necessarily

think this is the right path for everyone but for me it's you know pretty

well just because like I said I didn't have any connection I didn't have any

connection to realize I literally had no idea what wholesaling was and now I like run into people that are at their first

like real estate Meetup or whatever and they're like oh yeah I wanted to wholesale for years and I'm like how

have you even heard of wholesale because that it was just like so far removed from yeah from like experience

because I didn't have any connections yeah so if I've known about wholesaling

I would have gotten to real estate a long time ago and I was like you I read Rich Dad uh

Rich Dad Poor Dad went you know just got out of high school and so on and so forth and I'm like I thought I need a

bunch of money in order to get into real estate and so I was you know obviously

working the grind and doing all that and it wasn't until after Kobe once coveted

hit and everything I started learning about I I started actually just before that and I started to try to figure out

like what can I do to get into start doing flips and that's how I came across wholesaling

yeah so that it's just it's crazy I'm like I can actually do this with very

little you know it's nuts so yeah sorry didn't mean to interrupt

or take the spotlight no no I mean like it like I said I would as

far as especially real estate goes like I was at square one yeah like if you

just consider like anyone here that's even heard of wholesaling before you're

like three steps ahead of where I was so okay yeah the idea of wholesaling was

a very novel concept and I was like that sounds awesome so that was actually where I started what year was this

um let's see I've been uh I've been in real estate a little over three years so

it was like when it was 2019. okay so just before Kobe started yep yeah

okay so yeah it was yeah not long before Cohen yeah

all right and and so

um anyway like where I started was wholesaling okay so

I I heard this you know this whole concept laid out and I was like this

sounds awesome right and so I I promptly start marketing

yeah um you know I I think um the first one that we got a hit on was a

Craigslist ad that we did okay um Craigslist really does work this deal by the way did not work out for us but

it was our first one like under contract and I honestly the big the big thing was

we took action like right away you know we we we went out and we started

marketing um so so wait a minute you did not spend a year just watching YouTube and

watching people do their stuff and just like okay how do you do that and wait

until you get everything perfect before you actually took action now

anybody out there watching take action that's how you're going to

learn you can learn a little bit here then take action learn a little bit take

action if you just try to know every try to get everything and try to get everything perfect it's not going to

happen okay you're going to make mistakes sorry to interrupt but it was just no yeah you

know I I talked to new investors all the time like um at meetups and stuff like that and I

hear people saying stuff like oh well I gotta get my entity set up first and stuff like that and I'm not here to give

legal advice but I will say that you don't need an entity or a bank account

for that entity until you have a deal like until you're bringing in money like

yeah you know so and not to say it's not important and I'm not saying to like put

it off by any means um but I am saying that like your first priority is really

marketing and how do I get how do I get a deal and you know you can be setting

up that other stuff while you're doing that but priority number one is marketing

and so so yeah we we took action pretty quickly um I mean I would say

from the time where we like made the decision uh like okay we're doing this uh it was

we were probably marketing within like a month maybe okay and mind you like

30 days prior to that prior to when we made the decision

I was still at the point that I had never heard of wholesaling okay so that wasn't sure

oh I'm talking like 30 years ago okay so you were trying to get a deal but you

didn't know what wholesaling was no so one when we first started like

actively pursuing deals I knew what wholesaling was okay well I I had just

learned about it like seven days ago

so try by fire that's it you know and just just like the uh Julie here says

just get the deal just get that deal so yeah 100 percent

yeah so so we started we started marketing we got our hit off of uh off

of a Craigslist ad and it was it was a pretty good one in in some ways so it was

um the motivation for the seller was uh it was like probate

uh I wanna there was there was like some Financial issues I want to say there it

was um maybe Pat I think they were approaching foreclosure as well uh okay

they they had multiple things going on that would make them motivated to sell

yeah now one thing that didn't work out so well for us was it

wasn't a great area um you know it wasn't a terrible area but the property values weren't very

high like to the point where I think

arv was probably best case scenario like 20 000 or something okay

so was this in the area where you grew up

or was this uh this was in Flynn and Flint okay yeah so anyway we

we drove there got the contract got things going like learned all of this

this was all like great training for future deals because we got our

contract in place we got figured out how to fill them out fill it out lead them

through that process you know build trust and rapport with the seller you

know all of that stuff so we get it under contract super excited we don't have any buyers by the

way but and of course if you're seven days in yeah no I know

but if I was to get if I was to like start over again start with the buyers

yeah start with the buyers find out where they're buying reverse engineer it but that's not what we did so we got

we got this deal from a Facebook editor from a Craigslist ad and we start

marketing to try and get the sold we get title work going and stuff like that and

that was that was a real learning process so this whole this whole deal we had it under

contract for like six months wow that is normal not advised no

and I know that you Randy as a wholesaler know how much must have been

going wrong for us in six months now I've had that happen

to me before yeah it happens but yeah but it it was also

our first deal but it let's just our first our first contract I'll say that

yeah most of the time if you have it for six months you usually don't close on the

deal the one that I had for six months I ended up closing on the deal so it was

it was a probate issue this was this was a probate issue as well yeah

so I I brought it to um our title company that they work with

a lot of investors they've kind of seen everything they do all the creative

stuff that we're looking for yep as investors

and I brought it to the title agent and he was like this is the most complicated title work

I've seen in 15 years [Laughter] and I was like well lucky me so you

never want to hear that basically what happened was there was a

dead guy on title which is never fun yeah um

it needed to go through probate but it hadn't yet

don't know how it I don't know it was like the Probate Court missed it or something but like nobody was aware that

it needed to go through probate because there was still a living owner you know

yeah so we were going through all of this stuff there was by the way another guy

on title who was in prison um you know it's like

it was one mess after another but like I said learn to learn probably my biggest mistake in that deal

in particular was letting it go on so long yeah I probably which it's hard because

it's like when you have like even three months invested into you know a property under contract and stuff like that it's

like man you don't want to let that go but then

I was like I wasted like another three months consumed by this and didn't get

the get the deal done yeah so that was a Learning lesson one other

lesson for that for for viewers as well what I learned from that experience was

when I I in that case at least yours worked out obviously but in this case I

wish I had let it go sooner yep and then the other thing was I

shouldn't have been so focused on one deal if you if you want to make

certainly if you want to make a living in this business um but especially if you're uh

if you're even just trying to make good consistent money in real estate you have

to have multiple irons in the fire yeah like yeah yeah you've got to have

multiple contracts you got to have multiple deals going you know stuff like

that but everyone starts somewhere so it's like once you get something okay great

manage that deal but don't give it your full attention until you know it something

you know just keep it moving forward things or find more deals

even when it is something the thing is it's all about time management you know so you've got to allocate okay

these are my current deals these are my follow-ups I I'll spend this amount of time with the current deal spent this

amount of time with the follow-ups and spent this amount of time getting new leads you know yeah so once you hit that

like you gotta move on you know okay great I I'll follow up with you

next week yeah that's it and actually this deal

wouldn't have been so bad like I said like you just said if I had done better

which it's hard to do on your first deal because you know everything's new yeah but yeah if I had managed my time a

little bit better of just like not not devoting so much time to it before I

had reasonable certainty that we could get this that that would have helped too

that is one of the top mistakes that's one of the top mistakes I see new

new people doing with not not just wholesaling but real estate in general

is they concentrate so much on just one deal and whether that goes through or

that falls through now they don't have another deal right after that and now it

took them say five months to get that deal done and now they spent the during that five

months they didn't spend getting new deals so now they got to spend another two to three months trying to find

another deal you know and you know versus trying to feed the

the the wheel you know yeah so because most of your good leads

come up from through the follow-ups they don't like even in your cold call you know most your leads or most of your

deals they're not going to say oh yeah I'm ready to sell it give me exactly what you want and and you know what

we'll close next week yeah you know yeah like I've had I've had

sellers call me back that I I dropped him a mailer um just like a postcard or whatever yep

and they called me back like literally over a year later yeah

but yeah I think I think the key is it's like uh one of my mentors said to me one

time that in your business the magic really starts happening when you're doing it

all yep like you you have to do it all at the same time so like

um just as as a for instance with flipping it's like we're always looking for

sellers we're always managing deals we're always raising money

so that that's one of the one of the key things that's allowed me to scale pretty quickly in a short period of in a short

period of time is that I raise Capital so like we have over two million dollars

in assets under management right now and none of that is our money

wow so by the way if anyone

um is has money that they're looking to put to work um please reach out I'll give my contact

info later in the later in the show most definitely so yeah so

yeah that that was like um that was a pretty transformational thing

for me too because like I was like I was really set like down the down the wholesaling path and partly because I

I thought to myself well I don't really have like that kind of cash laying around to just like buy a house renovate

it it's like do all of that just yeah um and who wants to go through that many

like mortgages and stuff like that oh yeah I know yeah that's that's not a not a very

scalable route like if you want to flip one or two houses that okay like that

can work for you but to like build a business around it not scalable

yeah but one time I was in like I was in a mastermind group basically if you're not familiar it's just like a group of

investors helping each other to better their businesses and

one guy said to me about house flipping he was like if you do it right house

flipping can be cheaper than wholesaling

interesting and his point with this was that

if you raise capital okay it takes less of your money because you

can't raise capital for marketing yeah so I just share that because like that

was transformational for me um so I really lean heavily into raising

Capital I'm always looking for money for future deals I'm always looking for

Etc so tell me this when you first got into

wholesale did you just go straight into full time what were you doing while you were trying this wholesaling thing

yeah so um I was working full time um so I didn't I did college campus

ministry um okay so I wasn't uh normally when I say Ministry everyone

asks me like were you a pastor no um I didn't do any of that I was uh I

was working on college campuses um doing things like uh just helping

college students to grow in their faith Bible study to you know

um different outings or or group Gatherings things like that so gotcha okay 100 yeah that's

it's crazy that you went from that to wholesaling which

there's an ethical way to do wholesaling yeah wholesaling in general has a bad rap

yeah you know and everybody thinks that we're trying to get you know get something over on the seller and and you

know we're we're trying to steal all their equity and and so on and so forth and it's not if I I truly

am out there as a wholesaler to help these homeowners if they want to sell if

they don't great I'll move on to the next person yeah and I tell this to everybody I'm not

here to convince anybody to sell yeah you know yeah okay cash deals like

everyone especially for the past two years every seller has thought they want

cash deals yep but in reality like in a in a normal Market in today's market

you're getting a cash deal it's at a significant discount correct

yeah and so like it's not for everyone like uh what I guess what wholesalers

are offering that's not that's not for everyone in fact I would say it's probably not even for most

people like right as a wholesaler you're just you're talking to a large volume of

people and trying to find those people with a particular need that you can meet

with a cash offer correct and so so it's like yep and this is part

of why like it it didn't even cross my mind that wholesaling would be unethical

um just because like it meets a need like if you've ever met

a person that like truly needs to sell their house yesterday

yeah it's like what is the right thing to do to not

make an offer and make them sit out for another 30 60 90 days Plus

in this market it's like you know if somebody really needs to sell

good luck getting it even under contract in under 30 days in most markets

right so you know and and that's the thing like I had I

had somebody reach out to me about wanting to buy their house in Detroit and you know she wanted

close to uh you know it's still a

discount from retail but but pretty close to it and I had to be honest with

her I said you're going to get the most amount of money by putting up on the market and seeing what you can get yeah

okay um this is the price where I would have to pay and I work with other investors and

that's the reason why and I was completely transparent with you know they pay me my fee and so on and so

forth and I you know she was happy that

I was open honest and transparent with her you know I I told her that she could

you know call me anytime if she has any questions but honestly you know this is

my recommendation but but you know with that you can take uh

you know we're talking about some two videos talking this I I had I told her I

was like it all depends on your end goal what you want to do you know so do you

want to go find a place in rent then maybe you know what you can get a little bit more money on seller finance and

just get some money coming in if not if you need the money to try to buy a new place then

on Market deals that you that's where you go you know so yeah

yeah it's it's definitely um it's a

it's a good um it's it's a good place to start it's a good place to learn the business I'm

really glad I started wholesaling and actually you what you were saying you

reminded me of of what I found to be a very useful technique for like working

with people looking to sell their house because somebody said to me just what you're saying right now of like just be

transparent with Sellers and so like I was like oh is it really that easy not

that I was hiding anything before no yeah you know it's just like you know sometimes you got to be careful just to

not talk too much yeah and and so somebody said that to me and I was like

oh is it really that easy and so the next time I was talking to a seller which was probably a few days later I

was like they're like yeah I want a cash offer I

I need to sell and stuff like that and I was like are you sure like I'm gonna just so you know I'm gonna get this

under contract for a much lower price I'm gonna sell it for a much higher price than

what you're willing to sell it to me um and I'm not really going to have to buy this you

know like I forget exactly what I said but I like I like laid it out there

yeah almost trying to convince them not to sell it and like yeah that's cool

they're like okay yeah because the thing is is they they want to speak they want speed and

convenience they wouldn't want to have to do anything they don't want to have to run you know you know go on the MLS

have an open house and then wait and see you know yeah

um they don't want any of that you know I was talking with a realtor the other

day an old realtor of mine before I got into real estate uh you know

and I told them I've been doing this for about two years he goes oh do you have your license

I go no I don't oh I and you haven't gotten sued yet

and I'm like no I have a business I have an LLC oh that doesn't that doesn't save

you and that doesn't and I'm like yeah yeah it kind of does but you know you

can keep thinking what you're thinking your typical agent that you know doesn't want to do anything and I'm like

you know yeah I'm like yes I know I'll eventually have to get my license because laws will eventually go that way

but at this time I don't need to yeah so uh yeah same with me I actually I

haven't gotten licensed either um not against it but it you know I

see plenty of opportunities like I I'll say for my for my part I see the value

of partnering with other people and if that can if that can bring

um the right person into my network that's like willing to work with me because hey I'm not a competing realtor

like I mean I know plenty of investors that are

realtors that still you know work with other agents and yeah and stuff like that but I think there's something

that's not super helpful like a mindset that we can get that I see with investors that are

licensed where it's like well why do I need anyone else like why would I need it and stuff like that and I just

think that's a very like naive perspective to be honest because it's like even the

most novice realtor comes across crazy deals like I

literally I just so here's one of the benefits that I've found of

um not getting my license so I have a realtor that I've built a really good relationship with

um we've bought a number of houses off the MLS um that we flipped

um and so I just got a call and he had a sub 2 deal for me

okay well yeah that was MLS listed so that's usually unheard of yeah yeah

and if if you're not familiar with sub 2 anyone watching it's just it's a technique of seller financing just to

keep it simple um so um and it it's a very I would say like

being able to structure a deal in that way is like pretty sought after by um anyone who knows what it is and so he

found he found through another realtor an MLs listed property the the person's

motivated to sell and they're looking to sell sub to okay they offered to me yeah so it's not

like it's not like you went in there and be like listen I can't come up to your price but if we can make terms and you

had to try to convince them and figure out what that is you know that's usually what we have to do yeah you know and so

just just think though like if I if I had went throughout that so many people

do where they're like oh well I'll just get my license and why do I need to work with any other Realtors you know

right if we went that route I would have never heard about that deal

exactly I love working with people whether you're new or whether you're

experienced I actually think with you being super experienced if you are not open

-minded it is a detriment to your business yeah okay

if you think oh you've only been in the business for a year and I don't you know I don't want to work with you that 100 a

detriment to your business you are losing business yep okay I have outside

the box you have to be intentionally marketing yourself and your business yep

and actually networking Pro tip that I I'll just share just as before everyone

um when I'm networking like when I'm at especially real estate networking events and stuff like that what you'll often

find in like decent sized groups you'll find like kind of the the people that everyone wants to talk to whether it's

the speaker the you know or whatever like glitter there all the time that

everyone knows you get those people and then you get the clear newbies yeah I avoid the people that are there

every time movies yeah you know my reason for that is

because those newbies at least some of them will eventually end up doing deals

some of them will maybe even eventually build sizable businesses and stuff like that and if I make first contact with

them and if I'm able to help them in some way yep guess who they're gonna bring a deal

that they need a partner on and you never know because they they

might be there because they have a dlsl already exactly so I had uh in another

interesting story this exact situation I was at a real estate Meetup I saw an older gentleman

who was clearly new like it was a definite first time there for sure okay

like you could spot him yeah um and so I

went up and I talked to him immediately and uh and as I started talking to him it

turns out he was there because he had some money that he wanted to put to work in real estate

you know and so I forget how much he said I think he

said he had like 250 000 cash that he was like that he was looking to put to

work and it's like you know especially if you structure it right it's like

that could be enough for for three flips you know you know if you if you work it

properly with like hard money or you know whatever else um

you know that that could secure three Deals and if all three of those you could make

you know 25 000 profit you know that's

that's pretty good like that that could have been a very valuable conversation

oh yeah because the thing is think of it this way you know you're gonna make a 25 Grand profit on there he's going to come

home with uh what 10 interest more than he's going to make in the stock market you know

and he's going to be happy and want to read give you more money you know so and

it it's just like uh you know Julie said they they called an agent tonight to see

if they wanted to do seller financing on their uh you know on their listing and

he said mind you I have no idea what I'm doing what I'm doing you know and that's the thing you you

just have to check it out now he just said that but they wanted to roll it

into a 1031 exchange so they didn't want to do that but if you don't ask you don't know

oh here's here's a pro negotiating tip I

love when I know people are in are doing 1031 exchange yeah um your options can be limited so

you can end up having to do cash or something yeah by the way Julie you can

feel free to reach out because I do have funds available and stuff but um

but one of one of my Pro tips is like when you come across somebody doing a 1031

or wanting to do a 1031 they're very motivated yeah because very likely

by the time they're either in a situation and they don't want you to

know this they don't want you to know how motivated they are but very often they've already identified a property

that they want to purchase yeah or and they're on a time limit yeah

I think it's like a 45-day time limit or something like that and so like

you know there's I'll just say there's more motivation than they will let on

with the 1031. so I found that to be

um I found that to be like pretty good where you can you can work

out some some good deals with 1031 sellers

so so I guess Julie knows you because she said okay great I have your card so oh yeah I was gonna say I thought I

thought I knew who that was so you know that and you know she said

that that's exactly what the agent said so I she was so nice but now there is

there is a way that you can do a seller finance with a 1031 exchange

now I'm not well versed in it I just know that there is a way you can

do that so uh so keep that in mind uh there are

just not a lot of people know about that so yeah um well and I'll just give you a for

instance of a recent deal that I was working on it was a portfolio deal and the seller

initially wanted to do a 1031. yeah and so I assumed like I you know I gave him

three offers one was Cash well really a bank offer and then the other two were

um creative yeah and so I figured oh for sure they're they're going to want to go after the cash offer so I made it like

pretty low like yeah like probably really tolerable though

and they actually were more interested in the creative and I think part of the reason for that

was because although people you know people that have a significant amount of

their net worth in real estate they've probably heard of 1031 exchanges

and they're like oh yeah that would be that would be awesome to do that but if they're not aware of creative financing

techniques right well you might not realize that okay well I can actually

lock in the price the price that I want right now yep and

get that money out at a later time obviously in that situation

um you know in in your typical seller financing situation that doesn't necessarily allow for a 1031. but it

does allow them to lock in the price they want

so you know it's like especially right now I would think people that

have significant portfolios if they're looking to sell like any time in the

next you know five or more years yeah

you know I would I would think that they're fairly motivated right now yeah

so I've actually came across this one I talked to this one uh

you know this one seller and they say I told them I said you know

you know usually I try to do a zero percent interest for creative and she

goes well why when you know banks are given they're six seven percent right now I said that's exactly why you're

concentrating more on the price right and I and I asked him that I'm like you

you want to hit that certain price right you just don't care about what you need it right now is that correct or is that

not correct you know and they're like yeah yeah I need to get this you know whatever price

I said okay this is what my cash offer would be and it's like 70 below that you

know and and I'm like but if we were to do

creative and go on terms then you know if we do it zero percent

interest I'm building in that interest with the extra price you know it's it's not a I'm going you

know I'm gonna pay that bigger price and then I'm gonna pay another five six seven percent interest on top why would

I do that I can just go get a bank loan for that you know so yeah and and that's the other thing

too is like and I I think people six months ago people didn't understand this

but I think probably a lot of people are starting to understand this that like as

interest rates rise prices go down yeah like what people have the ability

to afford drops as interest rates rise so typically you know Rising interest rates

prices are lower lower interest rates prices are high so it's you know it's in a way it's kind of like a double-edged

sword you know so Caleb actually asked this question

can you offer a creative option on homes that need Renovations or do they typically look more move-in ready

properties and you know yeah I'll let you answer that yeah you can absolutely

do creative financing on properties that need renovation

um for instance sub 2 um yep that's a that's a great form of seller financing

um basically the key excuse me the key with sub 2 is that

you get the deed so like you become the owner but their mortgage stays in place

right so in that situation it is your home

and you are making that mortgage payment and by the way that mortgage payment even at even at today's interest rates

like even if somebody got a mortgage in the last like three or six months and it's like five six percent that's still

going to crush hard money yes no so

you know even in those situations it can still it can still make sense it's all

about opportunity cost which is just the idea of like what are you giving up so it's

like how I look at seller financing is if I was to go out and get funding for this

property and that's whether it's hard money Bank financing um Capital that I've raised

Etc I'm looking at what's the cost of that money it's going to be anywhere from for me

six to 12 percent that's kind of that's like my range

um and so you know if I'm entering into especially a short-term deal that I'm

gonna flip and if I'm able to get it sub too you know that can work out great

similarly if you get and this is what most I would say

this is probably the most common like exit strategy if you get us if you get a

seller finance deal is you're often not getting creative financing to flip the

house and just sell it and exit right away um oftentimes you're getting creative

financing and you want to stay in that deal as long as possible yeah and the reason being because then

you get um you get good terms locked in and you want to let inflation take care of the

rest and you just you make more money from the appreciation hopefully increasing

rents tax benefits Etc um and and that's where you've got to

make sure you cash flow and this is where a lot of people with the creative deals it's funny because I come across

some creative deals where they're like okay 20 down six percent interest rate

and you know and you're paying this higher price why would I do that

yeah I I won't do there's no point in in

doing anything for 20 when I can go get a bank loan from right around the same

amount you know yeah but the thing is is that you have to look over again your

opportunity cost exactly what you said uh you have to look over the opportunity cards and you know when you're doing a

burr when you're doing a uh or just renting it out say it's a rent ready

property I had a so I almost did a deal where you know it

was a rent ready basically rent ready did just a few things need to be tidied up you know maybe a backsplash replaced

or whatever and that's about it you know and it was a creative deal and I had to

come across I looked at it and we're going to make it was like gonna be like

uh two to three hundred dollars in cash flow yeah well I made the mistake of not

uncapping the taxes and even though it would have been a

land contract the Caps the taxes was still the uncapped so I had to now

calculating the new taxes and I didn't calculate in vacancy

so now I have to do that it went from you know two to three hundred dollars a

month in cash flow to a a negative almost 100 a month

yep you know after you figured everything out and so I had to go back to him and say

unfortunately it's not gonna work he was dead set on

he wanted the interest rate as well as the price and I'm like yeah

yeah it's like when you're talking creative financing

you have price interest rate term um and

don't forget down payment yeah and like what I tell sellers that I'm dealing with I'm like

you can pick one and I'll get the other three

yeah like I and typically you know like you said in these situations it's

typically somebody that's dead set on price Well yeah if somebody's trying to trying to get

you know an extra an extra one of the terms in their favor

like it it really can't be 50 50. otherwise it like it just makes no sense you are setting yourself up to lose

money yeah almost guaranteed you have to get the other three if you're giving them

one of the terms and if they if they're like oh well I want to get

you know an awesome interest rate okay well then your price goes down yeah

I'm like I'm cool with that yep so yeah

100 percent so now with so you went from Ministry to

whole trying to do wholesaling when did you go from wholesaling

into Fix and Flip now you you said you came across where

um was he your Mentor or was he just a uh uh uh he was a friend a friend of

yours okay yeah he told us about private money yeah yep he uh he was a part of a

mastermind that that I was a part of gotcha okay that I was connected to because of my

mentor um gotcha but yeah I always make a

point of mentioning that comment just because it totally changed the direction that I was headed

because I was like I love the idea of wholesaling but like

just to be frank and I don't say this lightly because I yep had and do have

so many headaches with flipping but flipping way easier

like you know you know why I'm gonna tell you why because you know what you're getting yourself into you can

pick and choose your deals and yeah you know what you're gonna be able to come

across you you have that deal for two three months however long you're working

on that you know and you know roughly what you're going to be

getting at the end now obviously things can change and you know Marcus fluctuate

and stuff like that but as long as you bake that in you know like okay this is

as long as we stick to our budget and we'll make a a roundabout profit you

know and I understand where you're coming from on

that because yeah like I as me wholesaling as well like I kind of wish

I was flipping right now to be honest I just don't have the funds to be able to flip and

you know um so that that's kind of the key key thing

um so I'm happy uh that you know you're saying that that it's easier because I

do want to get into a flip I do that's actually one of my goals is I do want to

do I want to do a creative deal this year and I want to do a

um I want to do a flip this year so now whether that will happen or not I don't know

but I put it out there in the universe to to see if I can yeah

so uh yeah now so you came across that you

know your friend told you about the the flips being easier so how did you first

start getting into flipping and and did you start off with your own money at first

uh no I didn't I've actually never used my own money for flipping Okay jealous I

I want to get with you how to do that okay we can talk

um but uh but yeah it that kind of like opened my mind up to the concept and

because of that like up to that point I had always felt like flipping or other

things I felt like they were kind of off limits yep because I didn't have the

straight up cash to just drop on a property you know

um and so anyway I share that because I wanna I wanna see people more people

starting with their first deal as a flip you know because it's so doable

um but yeah I so it was kind of a

real quick before everybody starts doing that I just want to emphasize this one

thing I know you want them to go start off with a flip but I recommend for people

to start wholesaling before they flip and there's a there's one reason why

you get to know if you do it right and you start talking with your buyers

and you start learning from your buyers you get to know the the rehab costs a

lot better and that's where most people you get to know the areas yes that's the

key like at least for me that was like once I once I found

like it took me a long time to find but once I found where other people were

flipping yep then I was in business then I yeah then

so you are looking at higher quality deals where there's enough meat on the boat to make some money and stuff like

that so 100 and that's where if you're a

wholesaler just going through the motions I'm going to tell you you are doing yourself a disservice you need to

talk to your buyers you need to see what their renovation costs are now everyone's renovation costs are

different because you may hire you know that's a crew to be able to do

all your stuff another person says or hire a crew with a general contractor

another person says okay I just sub everything out so now they can take the general contractor Price Right Out okay

and then another person will do it themselves

it'll take longer but it's cheaper yeah so the more you know exactly what

things cost and what way you're going to go okay I think the better you become as a

flipper as a wholesaler uh yeah just all around me in real estate and

something I'll say too is like wherever you start those two paths they they really look especially at the beginning

they look pretty much the same yes because no matter what it all starts

with marketing yep because you gotta find a deal and by marketing it doesn't have to be mailers

but I do think like that's a really good thing for people to get their feet wet with and and start learning that wheel

that world um yeah as far as getting into other

paid channels you don't have to start there you can find deals for free like on Facebook I found yep I found wheels

on Facebook um 100 but yeah it it really should look pretty

much the same because you start off marketing you get something under contract and

you know just at least from my experience what really happens is you

get several things under contract to come get them closed but you learn from

each of them yeah that was my journey like I okay maybe everyone's as slow of

a learner as I am but um yeah it took me a lot of like get

them under contract you know pretty soon through this whole process especially

wholesaling but once I got more into flipping now I can get my whole due diligence done in like less than 24

hours from getting a contract I can get my inspector contractors if I need

subcontractors like if I need to get a quote from Pinnacle electrical whatever yep I if I need to you know there's

something weird in there and I I need to get a specialist in there okay well then I get them in and I can I can have that

all happen within 24 hours and and that's great you know and it's

because you know also you know your costs of things as well you know uh yeah

that helps too is like I get better at estimating and stuff like that but exactly so that's the thing like as a

wholesaler myself and I come to you with a deal and you know I talk with you like hey

you got this but okay it's in your general area as far as price wise

you know we talk and you're like hey I need to be this doesn't work for me at

your price but I need to be here you know okay great that is awesome feedback okay

if I'm not getting any offers at the price that I want then what I'm gonna do is I'm gonna go

I'm gonna come to you before I go back to the uh the homeowner or the seller

and I'll be like hey if we if I get this down to this price

can we get a deal done you know yeah I'm not going to get a

that's one thing I don't like about I don't go to a homeowner or a seller and

say I need a price reduction without having a offer back backup

what I mean by that is I don't want to go to them with a price reduction and then have to go back two

weeks later with another pricing yeah absolutely you know I say okay if we do this price reduction we're going to

close in two weeks or we're going to close in a week you know yeah and I think

um also this is for anyone out there that's either wholesaling or looking to

wholesale right now we're in a very interesting Market it's I I would say most of the

places where I'm at um the Market's stable but any flipper

that knows what they're doing they're discounting their projected prices like right now

um in fact you should have been like a few months ago for sure and so whatever

when you're running numbers and whether you're a wholesaler or a flipper or

anything else you need to be discounting them whatever whatever the Market's saying

it's worth right now you need to discount from there like probably 10 to 15 percent

numbers off of that yeah my cops I only go back three months

yeah that's it I cannot go back further okay three months only if I have

to go back further in order to find cops then I discount and give them more but

what I try to do is my arv with those I try to discount at 10 to 15 percent

yep absolutely yeah and I'll just say too because I know we've talked

before and stuff and I know you do that but I see deals from other Realtors and

I'm like I'll I see them all the time where I get them in my inbox and and they're clearly pricing it like at six

months ago or more yep and I'm I just I don't even look at theirs anymore because I'm like I see a lot of that I

see a lot of wholesalers too new wholesalers other wholesalers yeah and

you know I've come across where this is another reason why I've done this show

as well is to help educate as many people out there as possible so yeah

with our group with our Facebook group you know we have about 2400 people now in the Facebook group

um and that I'm just now building up my YouTube channel so that helps

by you know I specialize and by the way anybody wants to JV with me or just

get on a phone call with me and get my opinion on a deal that they have I'm

happy to do that give me a call send me an email my emails down below um scrolling and you know I'm happy to

get my opinion but I'm going to be honest I'm going to tell you whether I can sell you know it's very it's a lot harder to

sell something inside Detroit than this Metro Detroit you know and I have to have an even

bigger discount inside the inside the city of Detroit you know so not only in outside of

Detroit you're also discounting but you know there's not you know there are

there's more buyers out there you know out in metro Detroit right now at this

moment there's not a lot of buyers inside Detroit because they're trying to be risk

adverse yeah yeah which is interesting I

I guess I don't specialize in Detroit but I guess I don't I don't see that coming down as much in prices many other

areas but yeah so but I guess time will tell exactly

and Andre Kingston says I'm a realtor and I'm listening I'm hearing what

you're saying so that's good keep it that way you know I always see the the

comparative analysis that Realtors want to hit and what they do is they say oh let's try to hit that 10 above that and

see if we can get that and unfortunately yeah oh my gosh if you're if you're flipping

houses or if you're a realtor and you're doing this if you have agents that are advising like you know here's what this

is worth we're gonna list it for five ten percent more or whatever yeah

this is not the market to do that no like you a year yes if you don't price

them right now your deals will get crushed and no one will even take a look

at them because the thing is is that like if I have I'll tell you right now if I had

funds available to me to either do flips or do buying homes okay

like I could hit these on Market listings and like cut up cut the prices in half

okay and I can guarantee you that you know if it's been on the on the market

for more than 60 days one of them is going to take it yep

yeah yeah yeah colors that are on the market for 90 days and you know

even like 30 days like people aren't people don't know what to do like you

know they're not used to it sellers have had Amnesia like they don't they don't

remember pre-covered days I know so like and which I guess it works for

us as investors on the buy side um but you gotta plan for it too like

for me as a flipper I've got to adjust what I'm planning for my holding costs and stuff like that because you're

holding it longer so you gotta you gotta Bank on like what I'm focused on right

now is I'm focused on okay how do I how do I really compress the timeline of my

flips like my goal and we're not there yet but my goal is that all of our flips

are listed within 30 days wow and so

that's what I mean even though we're minimizing big jobs unless there's

real big profit like see I see and that's where buyers are at right now is

they want carpet paint refresh and then list it and I'd get that if you want my

buying criteria or if if anyone else wants a great buying criteria

I'm looking for properties that are median price point like 150 to 250

obviously some markets are higher than that generally below median in whatever

whatever Market it is whatever that looks like um but not too far below like we want

entry-level houses is kind of the bread and butter of what we're looking for

arv to be at that price right yeah arv to be 150 to 250. generally I do still

consider deals up above that but I like I wouldn't I would be very hesitant like it would

have to be an amazing deal for me to do something that has arv over 400

yeah like like for instance to break that 250 like you can go and Royal Oak you'll still get an entry-level house

the other 300 you know yeah so exactly 100 yeah so it's a it's all relative to

the market so you got to do your research but yeah generally right around median whatever entry level buyers are

buying in a given Market so um and then I'm also looking for smaller

houses because the advantage of smaller houses square footage wise is that

as as the square footage grows of projects you're doing your budget grows

exponentially Gadget so if you can stay like under 1200 square feet or so

that's like that's kind of prime time at least for me um

I'm not sure if others if other house flippers are are monitoring square

footage like that but generally entry level it tends to fall in that square footage anyways

[Music] um I would say a Max is 1800 but I would

say 1500 and under yes is entry level you know as far as like the size of the

job I'm generally not interested in

projects where the repairs are going to be over like 60. okay

now awesome I say that because I have three currently going where the rehab

budgets are well over 60. okay I I've done a couple of hundred thousand dollar

plus rehabs gotcha um and I'll just say this ain't the

market to be doing those right not you if you're if you're gonna flip and I've

I've discouraged many people that I've spoken to from flipping right now because this this isn't the market where

you get into it and you think well I'm gonna get like a

traditional mortgage I'm gonna live in this house for the next two years and renovate it over that time and then sell

it right just my opinion I think people that are doing that are probably going

to get crushed in the coming market so I wouldn't I wouldn't go that route now that's not to say you can't flip in this

market right you have to be doing things to do it very quickly like I said yes

for me what I'm looking at 60 days the Jabs that I'm looking at is like

worst case scenario three months okay like out in 90 or listed in 90 days

yeah um so you you just have to manage timelines right now and the reason I say timelines

is because um yes it like as markets start cooling off

dropping I'm not saying it's gonna be like dramatically dropping I don't know

but right as prices drop in days on Market climb and stuff

the longer you hold it the more hopefully profit is lost like hopefully

only profit I'm saying hopefully it doesn't go negative yeah but the longer you hold it the faster that shrinks right

so um hold time is very important holding a house unless you're planning

to rent it long term that's a different ball game that's that's also still a good strategy just gotta know your

numbers but and and you gotta have multiple you gotta have multiple exit for a property

too and you gotta see okay if I don't sell it within x amount of time I'm

going to rent it out or I'm gonna put it here I'm gonna make an Airbnb or I'm gonna do whatever the thing may be you

know I had one buyer that he had a property in Madison Heights and that's what he told me he said you know we did

we had a a it was a great property and he's like if we're gonna if this doesn't

sell within like 60 days then I'll take it off the market and now I'll do an Airbnb

well he got a 10K over asking price the first weekend so he did a really good

job on it so um so he didn't have to do that but that was his backup plan you have to in this

market you have to have a backup plan absolutely so I always not I don't enter a deal

unless I have three exit strategies yeah so Audrey Kingston the the realtor

actually was asking do you do auctions uh no but I am looking to

okay that's a whole different strategy I I'm like I'm literally like reading a

book now to like learn more about auctions and and get things ramped up for that because I I definitely want to

be doing auctions um yeah so the good the thing I so auctions would be great but you're gonna

have a lot you're gonna have more holding costs with auctions because there's a nine was it I think it's a

three month or six month holding period where they can get the rights to

actually buy the property back yeah yeah they're well in the right of

redemption and stuff like that right of reduction yeah there's um I mean there's definitely risks with

auctions like I wouldn't start there unless you have like cash to burn because the other thing with auctions

and part of why this is why it's part of why you can get good deals there is because you have to have

the ability to provide them with a cashier's check same day

for the amount that you're purchasing the property for so if you're buying

maybe it's a hundred thousand dollar property like you have to like it can't

be a situation like where what you do with the typical closing where I'm like you know have

um our private investors uh wire funds or whatever like you can't do that or

you you miss those deals like you have to you have to like have the cash like

drive to the bank get it and you're there so now the good thing is if they

do a Redemption they still have to pay you a nominal interest rate and give you

all your money back yeah okay so I think it's like a

nine or eight percent interest rate or something like that um so but I would not start on any work

until that's over with or you figured out that you know whatever way they sign

over the rights yeah I mean like I've known people that have done stuff like

where they bought something at auction and they actually sold it same day like

you can you can sell them right away but yes there are there are risks for

whoever is buying foreclosures and at auctions yeah so I guess uh they're

saying uh what we're talking about is a share sale which is it that's exactly what we're talking about the tax auction

yeah okay so um there are other auctions uh online

that that have other rules so I guess there are like you know people will put

their house up on other auction sites you know things like that so yeah

yeah that's a normal sale yeah I that's what I would say

um I've seen some stuff I haven't looked heavily into buying like on other auction sites like that I'm mostly

looking at you know deals that other people

um you know maybe they they don't have the cash for or the risk Talent or or

whatever and some of these barrier Century are

good because it's like once you kind of crack that Arena like in Just In This

Place um auctions once you like break into that and you

you figure out how to do that those barriers to entry are what minimize competition

which means there's more money to be made so

I don't know if it yeah that's what they said that's what they said the harder it

is to find the harder a deal is to find okay the more money you're going to make

okay for instance all the the people that you

cold call all the people that you get back or say you do mailers I I'll use

the mailers as an example you send out these mailers all the ones that you get back

that say um you know not living there no address found or whatever the case may be and

their returns that is gold you take that stack and you

skip Trace those people to find and cold call them

the harder it is to find somebody yeah the better off the deal will be

absolutely yep so um 100 he uh they also said check out

auctions.com and uh it is a combination of options so

yeah that's good um now uh with that being said uh you know

we're coming close but what is it so right now you're doing

flips where the arv is between 150 and 250 okay okay I'll clarify that I I

currently have flips above that but I'm looking to get rid of that inventory and move into

lower price so okay but yeah and what air what areas are you looking for

um so right now we're in um Oakland Genesee Livingston

Wayne uh and I think I think that's all the

counties were in at the moment but also looking at MaComb and Washtenaw

counties so we have a we have a pretty big footprint um

I don't know if we'll continue that footprint but I like all of those areas just no proper Detroit right

uh I'm not even opposed to it I just don't know it so I'm not

I don't I don't know Detroit very well at all so like if I was to go in there I'd have to like have a partner or some

sort of guidance of like somebody that really knows it and I know a couple people that do so it wouldn't be out of

the question but I I just don't know what I'm looking at generally so

I'm I'm not against Detroit I haven't done anything there yet so if you ever

need help analyzing a deal or anything like that inside Detroit by all means let me know I'll be happy to help you so

yeah for sure um you know obviously I don't do flips or anything but I've wholesaled many

many deals in Detroit yeah yeah okay all right so with that so now

going into the future that's what you're that that's your goal anybody here that is you know watching

whether they're watching right now or whether they're watching the future you know how can they help you and how

can they get in touch with you in order to um to help you on your journey moving

forward yeah so um what I'm I guess the main thing I'm

looking for that I I've already mentioned is I'm always looking for money

like I just always because um when the buying opportunities come

the people that get them will be the ones that can fund them and it will not be yeah yes it has been so

if you have money to lend or if you have a deal that you're like man

nobody can seem to get the financing for this I'm your guy to talk to so

um gotcha right I'll I'll give you my uh my cell phone it's 989-447-3176

okay and actually I'll put that in the chat as well yeah

so and you should also find me on like on Facebook Instagram

um I have Tik Tok as well so I have some good content all over social media so

you said 989 will repeat that 989-447-3176

-3176 yep all right so yeah I'd I'd be happy to talk

probably that or social media would be the best way to get a hold of me

and then so I just put it in the chat for Facebook okay okay great so I'll put

it in there for uh YouTube as well seven three

oh I almost forgot I have a deal I have a deal

so I know I've talked all about flipping mostly um before we before we go into this okay

talk about your worst deal so oh yeah yeah let's talk about that first okay we're

going to the deal you have now all right yeah that one's a little bit of a long story uh just to give you an idea of how

brutal this was it was like a 14 month deal oh wow yeah it was it was that rough and so anyway uh I'll keep it somewhat brief because I know we've been going a

while but essentially what we were doing with this house we were putting a major Edition on it

and when I say major I mean major major we uh

it was originally uh 600 square foot two bed one bath house

and we were converting it to a 1200 square foot three bed two bath okay now

that sounds like a lot until I tell you that we also doubled

the square footage of the basement oh wow so just imagine that like you don't even

have to know anything about construction how stupid that was yeah

normally when you do audition you don't add to the basement yeah

yeah it was it was pretty crazy but I learned a lot learned a lot about Construction

um but yeah it was uh yeah along the way yeah

yeah there was there was a lot of learning lessons I'll just say that

gotcha but um but yeah the I part of what made this the worst the

worst deal for me wasn't so much the extent of the work it was the extent of the work combined

with having the wrong contractors got it

um it was on that deal that I fired my first contractor [Music]

um which hopefully you lose too much money from him

oh yeah it I mean if we want to talk numbers on this he yeah I I made a

profit on it miraculous like miraculous

okay I made a profit on this but he for sure

and I didn't even I didn't even total it all up because I knew it would have gotten me very upset thinking about it

but he for sure cost me at least 30 grand of profit

oh wow for sure and of that 14 months he was probably

only on the job three three to four something like that

so but he screwed up so much from the beginning that it's like

there is just significant issues mind you we were

putting yeah we were putting a major addition on when lumber prices were at their all-time high oh my God you know

it was it was brutal it was brutal we had we

had one um one week um I call it my ten thousand dollar week

um it was ten thousand dollars in surprises okay not budgeted for

oh uh yeah it that was a rough time

um but that was it was it was a lot of learning lessons I learned a lot about how to negotiate

with contractors I learned about a lot about rehab costs um

and and just generally like managing the deals and like I had no idea

what I was doing when I started I was just like I mean it was kind of like what I said about marketing and starting

the whole school and stuff it was just like okay just do it and I I'll figure

it out and so I this was probably next level

because like this this was a major major project yep so

um yeah we uh so we had that deal for for 14 months all together

three three of the three of those months were delays because of rain

Summers on record and it delayed us I counted

I had delayed us by three months literally that's crazy

so where was it where was this deal at um this is an address just rough area

yeah yeah this was Genesee County it was in Burton um

which is just uh just east of Flint so I actually am just talking to you

with a another wholesaler about a deal and Burton right now okay

so [Music] um yeah definitely if you if you're able to

get it under contract and stuff we should definitely talk yeah um

yeah I believe we'll be able to get it under contract by tomorrow hopefully so

okay um but the original price they wanted I I told him he needs to come back and get

it lower so so we'll see yeah so awesome

that's great um so with that so with that being said you have a

um you know so that was your worst deal and you know you miraculously you said you

made a profit on that yeah 12 Grand profit 30 grand yeah you mailed

it 12 Grand I didn't know that I just I threw them

around there yeah okay for 14 months of work it was

it was the hardest 12 Grand I've ever made

but obviously that wasn't your only job so they you didn't make 12 grand for the

whole year yeah yeah yes but I yeah so I will say when I

When I close that deal I quit my job though okay so I had other deals going by

that point and stuff like that 14 months is you know a long haul a lot changes

100 in a year yeah so but there there was a lot of um a lot of good learning lessons with

that and you know I guess if there's one piece of advice that I have from that

deal there's many like we could do a whole nother episode just on this deal for

sure um but if there was like one one piece

of advice that I think would be useful for everyone is get out of your comfort zone like I I've

heard it said like um no uh what is it

about like how there's no growth happening in your comfort zone

How does it go I'm drawing a blank on it yeah so I know what there's one saying

but I don't think it's this oh yeah yeah there's no growth in your comfort zone and there's definitely no comfort in

your growth Zone oh wow and so

anyway I heard it a long time ago but I that really stuck with me and I will

say of those 14 months I was not comfortable one single day

so what there is an advantage to that like I I learned so much like hopefully

that that gives you an idea though like thinking about that quote and the idea that for 14 straight months and honestly

well after that I'm still not comfortable any any day when I'm when I'm doing stuff like I'm still learning

and still pushing myself beyond what I think I can and

and so it's like but you can tell there's there's so much growth happening because of that so if you if you want to

grow and if you want to make well not just money but it'd be wealthy

get comfortable with being uncomfortable yeah period absolutely

if you're if you are comfortable and just comfortable you are not you have to

get comfortable with being uncomfortable okay which means you know whether I'm

getting on the phone all the time once I get comfortable being on the phone now I gotta switch it up and and do something

else and hire somebody else to take care of that the the comfortable job that I just had yeah and process into something

else that's uncomfortable for me so and or start doing flipping which is

more stressful for me because yeah you

know but um so with that being said uh that was

awesome with your your it was an awesome new worst deal but

thank you for sharing your worst deal yeah and you said you have a deal right now yeah I'm glad you reminded me so um

the property address is 854 Major Street okay

that's in Flint um 854 Major Street arv we're looking at

about 55 000 um repairs right around 20 000. asking

fifteen thousand um and I'm wholesaling this so okay talk

to me about that here's where it gets really interesting though so you're asking you're hold on you're asking 15.

15 yeah 15K okay and where this gets really interesting is the median rents

are a thousand dollars a month yeah oh wow okay is that as a three

bedroom uh yes yeah that it's three bed too bad

oh too bad okay nice yep breaker Frank

um it's frame okay does that matter too much in Flint

I know it does in Detroit no Matt especially if you're renting like it okay it really doesn't matter it's I'll

say Flint is a great cash flow Market in fact I've seen many many places like

nationally where they list Flint as like the number one cash flow Market in the country yeah

just because it's like where can you get a thousand dollars a month with less

than fifty thousand dollars into a deal yeah the same way that's the same way Detroit

is too so Detroit the same exact question yeah exactly yeah yeah the great Detroit Detroit Pontiac Flynn

similar you gotta you gotta know where you're going um I would say this is a decent area

um really solid cash flow good neighbors that sort of thing

and yeah it's I mean it's like just consider all in if you have 35 000 into

it where can you get a thousand dollars a month cash flow for thirty five thousand

wow and then yeah and you have a little bit of equity too yep is it vacant or is

it rented uh it's vacant right now okay it doesn't need a lot of work

the main thing is the roof um it it definitely needs a new roof

there's a leak in it excuse me it hasn't hasn't been a ton of

damage like I said only about 20 000 in repairs which is

I'll say that's a smaller rehab than I've ever done yeah so it the rest of

the house is in pretty good shape so I would say I would say it's the roof some drywall repair and yeah it's more or

less ready to run awesome well if you want if you have pictures I

don't know if you do or not so um but if you do go ahead and post in the group and see if you get any replied

or if you want um you know if you want me to post it

out to my email email list and you go on JV with me I'm happy to do that just send me all the information and email so

like all the photos and everything so um everyone kind of go from there so

um and that goes for anybody out there that is looking to JD on any deals I'll

be happy to look at them um you know if if I feel that you know

they're good for my buyers list I'll I'll put on email blast and uh you know

put them out to my buyers and and see where we can go from there so that goes for anybody out there my number is right

here this 586-307-4765 you can call text and my

email has been floating down at the bottom Randy buys houses Mi gmail.com

so um you know hit me up call me text me if

you are new to wholesaling if you are new uh to real estate in general

um and you want to hop on a call we're happy to do that I can either hop on a call hop on a video call with you and we

can record the video call um and you know we can talk about hopes

at admirers and all of that stuff and I'm just giving my open and honest

opinion like I do here and like I do every every Monday at 8pm so all right uh with that is there anything

else you want to leave everybody with uh now just get outside your comfort

zone that's the biggest thing and I I hope that's take away and you take that to hurt and and start taking action

that's awesome appreciate get comfortable with being uncomfortable yep

and then let's all do some deals together and go from there so I want to

say thank you to Michael hasso uh for coming on here for telling us this journey and if you do want to reach him

we did put his number in the side chat as well but just in case you you don't

have it um from then and you stay till the end

989-447-3176 you can also reach them on Facebook uh on our Michael hasso

um and he's very prominent in most of the groups and actually that's where I

met you was actually one of the meetup groups so I think I first met you at the

Met the mcv's pub with the the meet up there oh yeah

yeah it was um I had a meet up in Troy I think yeah yeah

so it was either mcvey's Pub or it was the mrei

um the one that's actually this Thursday so yeah yeah yeah okay

yeah so it was that one then yeah it's you know if you want to go to any of

these meetups re uh go out see where they're at and honestly just go out and

start meeting people introduce yourself so yeah networked like crazy 100 thank you for everybody who's joined

I appreciate it see you next Monday don't know who's going to be on here yet but we will figure it out and we will be

here whether I have somebody or not have a great day Mikey if you want to stick around for a minute so yep we'll do.

Real Estate Talk with Randy Stedwell Episode 1 | W/ Stewart Beal from Beal Capital →

This is The first episode of Real Estate talk with Randy Stedwell, We are having Stewart Beal from Beal properties and Beal Capital. We are talking about Multifamily and Property management as well as syndication.

This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.

If you want to JV with me on any deals in Metro Detroit market Contact me though

E-Mail: RandyBuysHousesMi@gmail.com

Phone: (586) 307-4765

Join our free facebook Group

www.facebook.com/groups/metrodetroitoffmarketrealestate/

www.YouTube.com/@randystedwell

www.instagram.com/RandyStedwell

www.twitter.com/RandyStedwell

How's it going everybody so I'm very happy to announce on this is a episode one of real estate talk with

Randy stedwell I am Randy stedwell and we are having a very special guest

here named Stuart Bill part of BL Capital Bill Property Management

I mean he has his hands in pretty much anything real estate related so we're

going to get you know be able to see his perspective on where we are on the

market where we are everywhere so we're just gonna kind of get to it see how we

are um if you have any questions if you have any you know comments or anything

like that put them in the comment down below let's keep everything positive

and kind of going forward all right and Stuart how are you doing welcome aboard

yeah thanks for having me thanks for having me awesome so yeah I'm very happy to have

you I'm I on our show we are you know we're glad to have you here while we're

here um so every time every so often you're gonna see me kind of look off to the side it's because in the group I can

see where the the comments come I can see who's saying it but for some reason because it's a group they don't show it

just shows Facebook user so um but with that being said I you know

kind of wanted to get your story on uh like where where how did you got started

in this uh in real estate in general and then you know and then how did you get to where you are right now so but kind of let's start with your background

and how you got started in real estate yeah okay great so I grew up in a bit

of an entrepreneurial family and my father was a contractor and he would bring Business magazines home uh from

work and I started reading those Business magazines and this was before the internet and it was before Bitcoin and so these Business magazines

the way people got wealthy is they invested in uh real estate I've I of course didn't have any money

uh at the time and so I uh what I did was I started a lawn care and

Landscaping Company when I was 13 14. and just started mowing neighbors Lawns

and uh you know doing you know stuff that you would do within walking distance of your house but when I was

right 16 I formed a official company and uh got really serious about it started

signing contracts hiring employees made it a real business and when I was 19 I sold the lawn care and landscaping

company for 250 000 dollars and wow yeah the way I did it is I

structured it kind of like a land contract in real estate where the buyer paid me 50 000 down and then 1 uh 483

dollars uh a month for for 10 years and so that was the the first big business

deal I did when I was uh 19. and then wow so and yeah go ahead so you

know I just kind of so you started a business when you were 15 years old the lawn care company okay yes now most 15

year olds are out there trying to get dates to the dances and and trying to

you know get girls out there and I'm not saying you weren't but but you're out

there just trying to make a hustle now I understand that because I was the same way so the difference between what I was

doing and what you did is you actually made a legit business out of it I was just trying to earn extra money and I

was just always hustling so yeah so actually formulate did your

parents help you with that and how did you know how to do all that at age 15.

yeah so uh I came up in uh a bit of a unique background where my mom uh was a

lawyer so uh she wasn't focused on like business law she worked for the uh

United Auto Workers in Union type law uh

but definitely uh I am blessed to come from a privileged background not from a

monetary point of view I mean I I'm you know I earned the money that I've made

uh in terms of you know trading my hours uh for dollars in the beginning but I

came from a background where I had uh a good wealth of knowledge that I could

bounce ideas off of and for sure you know when it was time for me to write my

first business contract uh she definitely helped me with it um and I know everyone on the call

doesn't have a lawyer as a mom but they are uh certainly certainly ways uh to

reach out to your extended Network and try to find uh inexpensive or mentorships making expensive resources

or mentorships to to um to to get on the same playing field

as I was but no I I definitely uh fully acknowledge that my parents set me up uh

pretty well success and that's actually something I'm focusing on now to set my three daughters up for Success

um and you know paying for uh the Michigan college fund so that they're not going to have to go

into debt to pay for college and doing doing a lot of things uh you know with

real estate that can set them up for Success so um you know basically it was my like

intensive hourly work with uh some uh

certainly family help that got me got me started a little earlier than most people most people would but the key to

a small business and one of the reasons I like real estate and the key to a small business is two

things uh contracts and recurring revenue and that's why I really like

lawn care and that's why I really like real estate is because both of those are contractually based recurring Revenue

businesses where you know that that money's coming in every month and that you can make it because you know it's

coming in you can make uh you can make uh plans you can hire employees you can

buy equipment and and that's why I really like lawn care and that's why it transitioned me well to real estate is

you sign a contract with someone you can trust that most of the time they're going to pay that they're going to hire you to mow Lawns every year and that's

why my business was much more valuable than the average lawn care business I mean you you talk to young people that

have Lawn Care businesses I said show me your contracts and they say what I I got 100 customers I don't have a single

contract and I say well your business is worth nothing more than the value of your equipment uh right if you don't

have contracts and so I I learned that very very early

um and uh had every one of my customers on a contract so that when I went to sell this business I said not only are

you getting 400 names and email addresses my clients buying contracts where they're committed to paying you

money in the future and that's why now did you do a four-year contracts did

you do a seasonally contract a yearly contract yep and then I started doing

two-year contracts too eventually okay awesome so with that being said like how did you

know so you're obviously your parents were a big help with your knowledge on uh being an

entrepreneur getting these contracts up with your mom being a lawyer uh you know

but no one can just hand you drive you

know you have to have the drive to be able to go out there and do it okay action speaks louder than words right

so you know were you at times out there I mean you're 15 16 years old you're out

there doing this business at how many of your friends were out there you know doing mundane stuff you know kid

teenager stuff things like that that we're trying to coax you to away from that you know you get a lot of peer

pressure yeah so I think one of the keys to success in business is

uh the the stomach the guts to make ambitious requests of people oh yeah

okay so there's a very high likelihood that uh my neighbor is not going to hire

a 12 year old or 13 year old to mow their lawn they can hire a 20 year old a

25 year old a professional but like let's just start out by making that ambitious request okay hey Mrs

Smith can I mow your lawn I'm 13. I want to uh save up my money to buy a better lawn mower boom right she hires you so

that teaches you okay people like being asked ambitious requests and they

respond very favorably to them so then next time you say uh hey can I do this

for you can I do that for you and it just kind of snowballs into you know one

of the major keys to business success and real estate success is to make ambitious requests uh you know I uh I

had a lease renewing this week I asked the tenant It was a commercial tenant I asked the tenant to pay twice as much

rent as they've been paying that's an ambitious request ambitious they thought it was ambitious

as well but I you know I've been doing this now for 25 years 20 in real estate in five years in the lawn care business

and I just I'm comfortable making ambitious requests so I'm made that request and that started a negotiation

where of course I'm not going to get them to pay for twice as much but it's a starting point we're going to negotiate

that so that that was a lot of um uh of issues and and and read read

books read magazines and it'll get you comfortable with doing some of that stuff and I've talked to tons of friends

and business associates and they say they're just not comfortable making those requests well if you don't believe

in yourself and you don't believe in asking for those things they're not gonna they're not gonna come you know

oh 100 I agree with you on that and that's that's where

taking action comes in in play and you know if you don't take action you're

never going to get comfortable enough to make those ambitious requests you know right uh you know when I'm talking to

newly Sellers and or you know I I figure out why they're selling I

figure out all this information well you know they're asking for we'll say a

hundred thousand dollars and and I have to give them uh hey I gotta be down here

at 50. you know and without them just hanging up on me I gotta

deliver the blow is is intellectual and you know as possible they may not go

with me but at the same point I'm still building a relationship with them and they may go with me if I keep following

up with them you know so and it opens up the negotiations like you said you know

so uh now with that you know you started

you know very young being ambitious I I did the very same thing I was actually

any chance that uh I had growing up I was mowing lawns raking leaves shoveling

sidewalks I did everything anything that I could do my parents

we grew up lower middle class and I say that you know

um but we had my my parents specifically said

hey if we are required to put a roof over your head Three Square meals a day

okay and put clothes on the back they don't have to be the best clothes and they don't have to be the best meals and

it doesn't have to be the best roof so that's all we're required of you you want anything extra

there's a model there's a mower there's a rake I'll provide those for you there's a shovel I'll provide that

for you go make money yeah yeah I would say I I would say I

grew up uh upper middle class I grew up in uh one of the best neighborhoods in

Ann Arbor called Burns Park and Burns Park is filled with University of

Michigan professors who right don't don't want to mow their own lawn but thought it was super cool the fire the

neighborhood kid to mow the lawn um and I I would agree with you my

parents didn't give me uh spending money but they did provide a lot of the basics and what I tell young people is you're

never going to have more cash than when you live with your parents you know because uh they pay for they pay for the

mortgage the insurance utilities the the food and so it's actually really good

time when you're a teenager to get started in business to start earning money and saving money because you're

not going to be able to save more money ever than when you're a teenager or a

young early 20s if you're living with your parent you're going to save like 75

80 percent of your income whereas when you move out it's going to flip on you completely or you're going to be lucky

to save 20 of your income so that's what I say to young people when they ask me you know what should I should be doing I

say working harder as a teenager than than uh than ever to try to to get a

head start and that that's what I did is I I worked just really really hard when

I was a teenager and young young person to uh right to save money because what

do you need to invest in real estate this is a real estate show people say how do I get started in real estate well

I say the first way to do it is to save up money to invest in real estate because what are you investing if you

don't have the money to do it and a lot of people read the I can get started with no money down or I can borrow money

from uh High interest private lenders and there's like all these tricks I said

skip all that just work your butt off for a year 18 months save up 25

000 and invest the right way you know into real estate with some with starting

point and that's the that's really the best way to get started in real estate yeah I completely agree with you on that

because there are so many times where you see all these okay I can get in with

zero down well guess what if you get in zero down and it it just so happens to

be the exact long time wrong time and things tank well now you're upside down

in those High interest loans you know yeah I've never I've never seen a zero

down deal that's actually zero down yeah you might be able to buy zero but you're definitely gonna have to invest 50 Grand

into it in the first six months to make it work you know exactly so yeah I I've seen some things where

people can manipulate it and you know with a combination of a private money lender and a hard money lender so with

both of them come together the problem I have that is if you're a beginner doing that if you're if you're an expert and

you have your numbers down that is no problem 100 agree with that 100 but if

you are a very a beginner and you haven't done not one deal you haven't

done not one rehab more likely you're wrong on your numbers more likely you're going to go over

budget and you know kind of go you know that is going to uh get you

just in hot water you're going to be upside down in that deal you know yeah

yeah so um you know with that being said so you're at 19 years old you sold your

business on a kind of like a land contract you know

where you're like okay well I may not get the entire entirety up front but at

least I can set myself up for the next 10 years where I'm getting a reoccurring payment and I'll work on something else

yeah so one of the keys to uh business and real estate is uh multiple streams

of income so you hear people talking about that you want to invest in you want to invest in some over here you

want to invest in some over here you want to invest right and and that was what uh

uh starting this small business and selling it allowed me to do is I've now got multiple streams of income I've got

the income coming in from the lawn care and landscaping business even though I'm no longer doing one minute of work and

that way I can dedicate every minute of work into another stream of income and I did uh construction uh that I I worked

in construction industry I was a superintendent I uh started a

construction business and started earning that money again uh to then save it and invest in more real estate and

then of course I had a third stream of income so I went I went from no income to now I've got three streams of income

I've got the lawn care and landscaping business which I'm doing nothing for I've got the construction business where

I'm trading my hours for money again and then I've got the real estate uh investment which in the beginning just

one property isn't going to be a very strong uh income but again that allows you to start snowballing things and

start doing some interesting things where you you can buy properties more rapidly so in the beginning of my career

I bought a property uh every 18 months quickly I was buying a property year

then I was buying a property every six months then a property every three months and then now we buy two to three

properties every month of various sizes and so it kind of like uh snowballs and

Warren Buffett's autography uh I think it's called snowball because you know

his his theory was he started 50 years ago and it just grows and grows and grows until it's an Unstoppable

Avalanche of success rolling down a hill and no one can stop it and that's uh you

know what I've been working on oh wow so are these mostly single families do you do multi-family things

like that I know you do now you deal a lot with multi-family but in the beginning did you start off with single

family yeah so I I didn't really spend much time on single family uh the first

property I ever bought was a five unit that I bought my other unit and then the third property I bought was a 30 unit

now it was a very distressed 30 unit it wasn't like what you'd pay for 30 units today but

um I didn't spend much time on single family I have I have bought single family and single family is fine I'm

definitely not going to knock that as an investment strategy but I've always focused on what I call uh small to

mid-size uh apartment buildings so that's five units and up uh and you know

mid-size would go anywhere up to like 100 units okay so and how would you find those just

through wholesalers through other agents or anything like that or would you be

out there cold calling and trying to find those deals yourself yeah so the first whole the first

wholesale deal I ever did was about 15 years in in business uh wow yeah I

didn't even know what wholesalers were until about 2016 when I did probably my first wholesale deal uh what I did what I did

is I uh used a combination of off-market and on Market strategies so on Market is

you know uh work with Realtors to make offers on the MLS and then off Market is

writing letters uh meeting people um and and and then another strategy

that doesn't work in 2023 uh but maybe we'll again in the future but

it worked really well from 2008 to 2015 so like a seven year stretch there is

you'd watch listed deals get old and stale and then you would approach them

with a much lower offer or a land contract offer or a very little downland contract offer and pick deals off that

are technically listed but they're just so old that uh yeah no one's looking at

them anymore and you can come in at a much more attractive deal um so yeah lots of different strategies

uh now a big one is social media you'll see me on Facebook you'll see me on LinkedIn I'll go viral from time to time

with different stuff and uh more than one deal a day comes into my book

Facebook Messenger or LinkedIn messenger now of course when you're looking at a

deal a day you've got to weed out a lot of things to try to find the deals that work for you but it's worth it because

if you're trying to buy two to three properties a month you need to have a really big deal flow coming in

um just to be evaluating all those deals now now the ones that don't work for you what do you do with those deals you just

pitch them back do you well Summer with the network yeah some are really horrible so I just say I just say no

um yeah some some are in the city of Detroit uh a lot of them are in the city of Detroit and I I can't right now in

good conscience recommend anyone invest within the city of Detroit right now uh just because of what's going on with the

evictions and and things like that um so I just tell the people hey I'm not a Detroit investor right now I'm a metro

Detroit investor I'm not a city of Detroit investor right now um and

um uh and then a lot of deals I take an hour or two to evaluate and then give

the person feedback and then a lot of them we do make offers on and then a lot

of them I uh I'm not a broker and I'm not trying to earn brokerage fees I'm not trying to earn realtor fees but what

I do is say hey my friend this guy would be interested in that or hear me you

know hear me Zach metler or one of my clients who might be interested in buying it yeah so I do a lot of

introductions and you know keep the deals uh flowing flowing that way

gotcha now as a wholesaler myself if you ever have any deals that don't

work for you yeah and you know send them over my way I'll see if I can help them out okay happy to work with you I always

get finders feed I always work things out you know no problem yeah so whether whether it be direct to seller or not

through another wholesaler so okay yeah do you work you work with other wholesalers yep I I JV a lot so oh okay

great um yeah so and sometimes I'm the one that has to tell them the honest to

God truth so yeah okay yeah what I tell people is it's like it's

really like people are like people contact me all the time hey hey Stuart if you ever have an apartment building

that doesn't work for you kick it to me and I'm like well over 500 people have asked me that uh so you're gonna have to

do better than that bring me some value and get in communication with me more

often and then you'll be top of mind like I'm not gonna remember you pinging me on January 9th 2023 a year from now

oh you know what I mean but like if you if you bring me value uh you know refer

clients to me or for investors to me bring deals with me then then you'll get into like a tight Circle that we work

with um and then you'll be top of uh top of mind you know most definitely I try to I

try to follow up with everybody as much as possible uh you know and any it's all

about relationships no matter what you know yeah for sure and I don't expect anybody to just hand

me over a deal without anything in return you know I always pay finders fees no matter what so yeah that makes

sense yeah the whole wholesaling is a um it's kind of a world that I've dipped my

toes in but I haven't really lived in and breathed it so you know and people like me people ask me hey Stuart how do

you buy mid-sized apartment buildings okay I could talk to you for 10 hours about that and then another personal

support teach me how to wholesale real estate and I would say ho hold up I'm

actually not gonna even tell you anything I'll go talk to this guy go talk to this guy yeah go talk to Randy

because I I'm not going to spend my time trying to tell you how to wholesale real estate because I'm not an expert in it

but I I'm an expert in a few a few things and so if you want to know how to do this or that I could speak to you

know what I mean oh most definitely and that's another reason why we have this channel is is I

don't want this being a okay this is only wholesaling and that's it I brought

lenders on here I brought other property management companies on here I brought other people on here I want to see just

just because like for instance we had to lender a hard money lender on here and I'm like I want to know what your

history I want to see how you got started where you know where you're at now what are your goals and you know

you're not just a hard money lender you know so uh you're an investor as well

and so on and so forth so like for instance you you have multiple streams

of income and you have multiple different businesses so you know the

fact that you own your own construction company the fact that you have a landscaping company the fact that you

have uh you know even though they're mid-level multi-families you know

they're you probably have higher multi-families by now um you know things like that it's it's

crazy so you want to bring that value to everybody else and hopefully if they you

know get Great Value they keep watching us and the good thing is is all of on

our YouTube channel and if you haven't subscribed yet hit subscribe hit that subscribe button uh we're on YouTube

we're also if you're watching on our face Facebook Channel Metro Detroit off-market Real Estate Group head over

to my YouTube channel at Randy stedwell and subscribe uh we will you know this

will be on there for the archives you know so yeah it looks like you know

there we go look got your video back so you know we're trying to add as much

value as possible to everybody and uh so at this point you have three streams of

income you have your construction business you have your landscape business that you sold uh that's giving

you reoccurring income and then you had what was the other business as well uh yes we had the landscaping and we had

the construction and then we had the first real estate Investments the first real estate investment and you know the

the key the key is to save up some money before you start settling into your life

you know you get married you've got kids you've got cars you've got health insurance you've got vacations I just

went to Disney last week oh my God I couldn't believe what that costs you know and so the key is in your young 20s

to to hustle definitely go get that job that W-2 job let's start a side hustle

so that your W-2 job is paying your expenses and you can save 100 of your side hustle uh income and invest it in

real estate you've got a short window to to really get started on this uh

investment career before you start settling in and you're you're not able

to save as much money uh as you could because you've got two cars health insurance you got to pay babysitter

child care you know all those things that start adding up and so that's that's what I did is I really focused on

getting my earnings higher saving as much money in my income as possible and

investing as much uh into real estate as soon as you can because

um you know don't try to time the market don't wait don't don't get hesitant about investing in real estate get

invested in real estate as quickly as possible it's too powerful of a tool for

wealth creation uh to wait because remember when you invest in real estate you've got four or five different

amazing that happen the first thing is you have cash flow the second thing is

you have appreciation your property's going up in value the third thing is you have depreciation so that that's

shielding your income again uh shielding taxes against your other income the

third the the fourth thing is your residence your tenants are paying down your loan own so that's increasing the

spread between the value of the property and the loan just kind of stretches over time and and that and that improves that

gets better every single day so it's a huge difference between investing now or six months from now uh in in these

benefits and then of course you've got your cash out refinances your potential sales of investing

um but I talk to people all the time who said it's now a good time I say there is never a better time than now

um as long as you buy a property that you can manage well yeah

so on that you know where they're asking you know what do you think of the state of the market is right now and again

back to what you just said you kind of just answered it uh but you know should

we buy should we not you know things like that and you know I think you're

going into answering that but I just wanted to kind of reiterate that that question yeah you should buy a deal that you can

manage well or your property management company could manage well you should buy a deal that you get a couple different

benefits on are you a Sweat Equity guy are you a guy that likes doing the

financing and the insurance and and the construction management do a deal that

is is good for you I don't I would not do a deal where you think you're going to increase your rent

a whole bunch this year uh rent is increased very rapidly over the last two

years and if you're looking at a deal where the seller says that you can increase it way more I would be hesitant

about that so make sure you're just doing some tight underwriting on the seller's numbers don't say okay this

guy's charging way too little I'm gonna charge way more that's dangerous in 23. that might have been fine in 2021 but

that's dangerous in 2023 because that guy's already raised around a whole bunch yeah and you know I was looking at

my Toledo my Toledo deals that I own I own uh about 500 Apartments in Toledo

right now and I looked in in 2021 we were charging about 500 a month and now

in 2023 we're charging about 700 a month that's a huge increase over two years

and um if you're looking to buy a building in Toledo and you see that the form the

form an owner is raised rent 200 a month you've got to be you got to be worried

trying to convince you you can raise it another 200 you know um so you got to be careful you got to be careful looking at deals in 2023

about rent increases but um I think expenses are going to stabilize obviously those skyrocketed twos

expenses are going to stabilize I think interest rates are going to stabilize uh I think there's going to be a lot of

opportunities in in 2023 uh for a real estate investment and that actually

brings it another question was Gary Corbin asked um he said no better time than now a

question mark with the even with the seven percent interest rates so yeah

yeah so so you're going to be offering Less in 2023 than you offered in 2022

and I've got a couple of deals where I made an offer about a year ago in my underwriting I had 3.5 interest

rate because I had just gotten a loan from Old National Bank in Ann Arbor for 3.5 interest rate well now uh now uh Old

Nationals at six and a quarter so okay it was only at seven percent for about

two weeks it's down all the way it's down all the way down to uh six and a

quarter and actually Old Nationals said that if the building is Class A they can get down to all the way

to 5.85 right now so wow so don't get me wrong it was up to seven percent there

for a minute but it's it's way it's way back down again already so okay so but again there again though

even with 6.25 there's a huge difference in the cost of debt between 3.5 and 6.25

and so that means you have to offer less than you did a year ago and the seller says sure what are you talking about

real estate has gone up in value in the past year and what I what I say to my sellers is look at my math you know I'll

show it to you um what is it's not true because the buyer a buyer with 3.5 interest rate can

pay a million but with 6.25 you can only pay 850 000 or you know whatever the

math works out so you got to be careful about that but yeah I I uh I'm not

concerned about 6 6.25 or 5.95 I was I was concerned

about seven that was getting pretty difficult there for a minute yeah and I I think between five and six percent

um even a little bit more than six percent I think that's where we need to stabilize and keep because a lot of

people don't realize that until for the you know for the past ex

with the exception of the past couple years you know for the past like say two or three years

interest rates have been at like six percent or above you know so yeah so my

first deal I ever did uh in 2002 was at 5.25 fixed for five years and then when

when it got to the fifth year I didn't really know what I was doing I kind of messed it up a little bit I never had a

loan expired before so it went floating it went from 5.25 to floating so I get a

letter in the mail saying hey your interest rate is 5.25 the next month I get a letter in the mail saying it's 5.5

then I gotta let in the mail saying 5.75 and I didn't know what to do you know

yeah so and so then I contacted my banker this was back in 2007 you know

when I was like 24 years old I said hey what do I do he said oh you just got to refinance again on a five year and we

got it back down to like 5.25 again I think um right so yeah I think that's I think

that's where we're going to stabilize to be honest so you know do I think that will come down eventually Maybe

in a few years but you know I I honestly think we're

going to be in the fives fives and sixes for for it's going to stabilize right around there so yeah and I think I think

you'll be fine investing in mid-size apartment buildings uh and five five and a half as long as the seller uh is

looking at the same numbers you are you know if he's looking at 20 20 numbers 3.6 interest rate

it's going to be a little bit of a challenge but remember no one's going to be able to pay more than you can for the building

in these mid-sized apartment buildings now if you go out and try if you go out

and try to buy a 250 unit apartment building that's where that's where it's very challenging you might be you might

have a five interest rate but the other might have a three because he's got different type of money he's got Chinese

money or insurance company or uh New York and so that and when you get to that

level it's it's harder to compete against the big guys but on midsize apartment buildings 20 units 30 units

everyone's gonna have the same interest rate they're going to all be calling the same Banks and so you just gotta offer

what makes sense for you don't get too aggressive yeah so

um does it uh Jim Wellington asks I what

are your thoughts on multi-family uh valuations uh many sellers have very

high expectations on value particularly if they're locked in a three to four

interest rate three four percent interest rates uh a buyer Now isn't getting that rate and most likely can't

pay the price that reflects debt Debt Service at as much lower interest rates

or current owners so do you anticipate a some type of price correction in

multi-family yeah so the the person I'm going to be buying from in 2023 is a

mom-and-pop seller they've owned the property for a long time they want to retire and their kids want

nothing to do with it also they realize that they have not

been reinvesting in this property and so they've got some major items that they

need to invest in maybe the city's cracking down on them maybe they're Banks cranking down on them they get

they have to replace the roof or the windows or the parking lot something that's going to cost a hundred grand you

know and and these folks haven't been aggressive on their rent increases so these buildings aren't cash flowing like

they should even though the debt is very low and when they're faced with an improvement that's going to cost 100

Grand or maybe even two so there's going to be 200 Grand you have roof and a parking lot that's going to be a a

seller and then the third thing it's someone whose debts expiring in 2023. uh

so I that just happened to me should have refinanced a loan six months ago but I was like yeah it doesn't

expire for another six months I got I'm busy I'm buying these other properties now I have to refine I have to refinance

it next month and I'm going I'm going from a 4.4 to a six and luckily you know

luckily I've been managing the property pretty well it's going to cash flow and a 4.4 or a six so I'm going to be fine

but there's going to be some people that they're not going to be fine they haven't been managing the property aggressively enough it doesn't work at a

six and they're going to sell so the the we just bought a 20 unit in Ypsilanti we're also all three of those things

were true at the same time Mom and Pop seller that's getting older the city's

cracking down saying hey you know two years ago we told you you had to replace this parking lot you didn't know you're

definitely gonna have to and then three the debt was expiring and so we we bought the 20 unit for a good price so

you're you're going to be looking for that type of seller um you're definitely not going to buy a

nice property Class B or Class A from a guy who's got three percent interest rate in 2023. it's not gonna work

um so so have you dealt with uh any properties that

are going to be I especially in the multi-family where you want to do like a seller finance

where I you know they have a great interest rate and they just want nothing

to do with the property it's a mom and pop like you said and they're looking to retire and they haven't put much money into it and they're like well you have

this great interest rate let me either take over your loan and give you a partial seller finance or do a full

seller finance have you done anything like that yeah definitely so uh we just

bought an office building in Lansing 16 000 square feet uh where the heating and

cooling system died and so now this guy's got no heat in this building and he's got tenants and I said look the

building's not financiable right now uh but I'll buy it on a land contract and

so I bought a I bought a 16 000 square foot office building for twenty thousand dollars down

um uh on a land contract we've now put in a new a hundred and sixty thousand

dollar heating and cooling system we're gonna we're gonna do some uh lease up uh

improvements and get this building lease back up and then we're going to do a cash out uh refinance on the building

and so that as an example that's an example of uh seller financing and then

on loan assumptions yeah some loans are very attractive to assume right now because of the low interest

okay awesome so I had another one uh another question on here from Earl

Harrison I can't post it on here because it didn't come through here for some reason but he said uh what would be your

recommendations or advice to someone starting out and trying to Source uh

potential deals and I think we kind of talked a little bit about it but he

probably came in late I so I just let me reiterate a little bit of that is that

you mainly have deals just straight come to you is that right well the answer to that question is you

want to meet sellers of real estate right you're a buyer of real estate you want to meet sellers of real estate so

how do you meet sellers of Real Estate first of all always be networking secondly reach out to the people that

deal with sellers of real estate so that's wholesalers real estate agents Banks insurance companies title

companies contractors oh my gosh contractors let me tell you about that

so I hired a guy to trash out a apartment for me

and and he said he's and I said hey if you if you're ever trashing out uh an

apartment on someone else's property and you think they might sell call me and

one week later he said Stuart I don't know exactly what to do right now but I

got this guy named Milo he owns a 24 unit in Romulus and he let it slip that this is the last job he's going to hire

me to do because he's going to sell the building so he was like hey thanks for trashing out my apartment this is the

last one you're gonna do for me I'm gonna sell the building I was like give me Milo's phone number and within 24

hours within 24 hours I'm meeting with Milo in his garage uh he's smoking cigarettes

like three at a time and I'm they're you know just talking to this guy he's like seven years old and and we struck a deal

for a 24 unit in Romulus right right then and there and that was from a contractor so if you're if you're a buyer of real estate you want to network

with sellers of real estate and and just always be networking so that's your that's your Banks your insurance

companies your wholesalers your real estate agents your contractors and just make it known shout from the rooftops

that you're a buyer of uh real estate and the deals will trickle in in the

beginning and then once you start buying you will be like oh this guy's serious and then they'll bring you more deals just like you're a wholesaler right you

don't spend a lot of time with people that you know that are not serious you spend the most time people that you know

are serious repeat buyers cash buyers and so you want to develop a relationship of seriousness you know

exactly and you know I it's funny because when I have a cash buyer that I

don't deal with very often I've never dealt with before I have a earnest money deposit for him

versus a earnest money deposit for uh somebody who's closed multiple deals with me right

you know so it's it's a safety mechanism it's relationships yeah yeah 100 so

uh yeah that is I mean get out there I that's basically the same answer I have

is get out there get to know people and Shout from the rooftops from everybody

family members uh you know for you you're out there getting your oil change

and and you're just shooting the with somebody tell them you buy real estate

you never know what happens you know it was you know it was so funny is uh I I

was at I went to the Michigan Michigan State basketball game this Saturday and my friend said let's go to the student

bar called the riv you know and and I should open my Michigan gear and some guy up to me and started ripping on me

because I was wearing Michigan gear in the in the enemy territory yeah and then he was like where are you from anyway

and I was like I'm from Ypsilanti he said oh my God I I just got a job in Ypsilanti and my boss uh owns this and

owns that and I'm like oh let me get a lunch with this guy and so like just you know just talk and just communicate

networking meet people and it just it comes together you know most definitely

yeah so yeah so on that it's you know relationship that's kind of how

like I've done some of my easiest deals that way and you know I've gotten some

really hard deals you know by cold calling you know so and you know you

never know what happens um you know and kind of going from that but

now going to what you have now um you know

going to what you have now you have obviously a lot of

multi-families and a lot of different businesses so what other businesses do

you have right now that's going on and uh how did you for instance we know that

you have a property management company uh so tell me a little bit about that

and how you got started in in Property Management yeah so in Property Management uh people

would call all the time saying hey Stuart I see that you're doing real estate and doing pretty well will you

manage my property and I always said no I've got to focus on uh my things but

then I started hiring some staff to manage my properties and I realized it

would be great if I could get some additional Revenue to pay these people more to work for me more full-time if I

managed more and that's how we started building the business uh right now we manage uh

remaining about 500 properties uh in 65 cities around Metro Detroit and you know

about 400 of them are owned by other people but that allows me to have a staff of 65 uh employees that benefit my

properties and our clients properties and it's just a really lost really robust staff that's the that's the

reason we started the property management company and then we also help people with real estate Investments so

I'm not here to help you buy and sell real estate but if you want to invest in real estate with me you can go to

beelcapital.com and you can invest in some of our smaller deals as a

non-accredited investor or if you are an accredited investor you can invest in our real estate syndications

um which which uh are the the deal mechanism we use to go after the bigger

properties the 100 unit you know properties so you just dropped a big

bomb right there so um because not a lot of people maybe a lot

of people here may know what a syndication and I kind of have an idea but for

the people who don't what is a syndication and how do you go about like with your

company Bill Capital get part of the smaller deals like what is

how is somebody you know it's just a website so how does somebody know for sure that you know if they give you say

ten thousand dollars twenty thousand dollars that they're gonna get a uh either a return or C statement saying

where their money's getting put and things of that nature so how does how does all of that work yeah okay great so

uh our minimum investment is twenty five thousand dollars and if you're not you're not an accredited investor uh and

you're having trouble uh buying a property or you don't know exactly what to do you can invest with us in one of

the deals that we're already doing and the documents uh the the documents

government so you're going to be signing an operating agreement that says you're a

partner in this business you're going to be issued a share and you're going to get a quarterly update on the success of

the the real estate in addition to that uh if you're local uh you can visit the

property uh you can review the deed review the closing statement review the appraisal it's just like you're buying

the property yourself except you're doing much less of the work or none of the work it's more of a passive

investment those are the okay those are the small deals now on real estate syndications

bigger is better right in business you want to do the big biggest thing ever well even me I've been doing this for 20

years it's hard for me to have five million dollars available to buy a 216 unit apartment building in Lansing so

someone before me invested something called invented something called a real estate syndication as a vehicle to pool

investors money together to buy that uh together so that's what we do right now

we're raising 10 million dollars uh twenty five thousand dollars a share

from investors will probably have about 100 investors and that will allow us to

go buy a 216 unit apartment building in Lansing or a 150 unit apartment building

in Monroe going after them yeah awesome so with that what's the

difference between a syndication and a Reit yeah so Reit uh a Reit is often a

publicly traded vehicle that's publicly traded on the stock exchange and it's

operated by a very large uh corporation uh real estate indications are usually

operated by two three four five guys in a small staff and they're doing

something much smaller than uh a Reit a Reit has costs associated with it where

you've got to be buying you know 500 million dollars worth of real estate make that worth it whereas the smallest

syndication I ever did was we raised two and a half million dollars we bought about eight million dollars worth of

real estate and that was 184 apartments and uh the costs are lower so you can do

smaller things with uh syndications um so it's a similar structure but it's

smaller so with the Syndicate yeah so with a syndication do you get like dividends and air or or do you just get

um uh just get your shares bought out when you sell the property like how does that normally work is it a passive

income monthly yeah so uh different sponsors do it different ways but I'll tell you the way

I've done it and I'm currently doing my uh eighth one and everyone will set up the exact same uh an investor gets a

seven percent preferred return on their investment and then above seven percent it splits 70 30. so 70 percent goes to

the sponsor which in this case excuse me 70 goes to the investor and thirty

percent goes to the sponsor which in this case is myself so if you invest a hundred thousand dollars you're gonna

get seven thousand dollars back before the sponsor earns any money and if the

investment does better than uh seven percent then it's split 70 30. and my

syndication uh the last three years have returned uh 10 to the investor so if you

invest a hundred thousand uh you'll get uh ten thousand back a year and that's

only cash on cash that doesn't include all the other benefits of investment real estate that's the appreciation the

depreciation yeah paying on the loan Cash Out refinances sales

um and that's a big question can you when us you're in a syndication can you depreciate

yeah so it's exactly like you own the real estate it's all flows through the K1 so if you're if you invest a hundred

thousand real estate syndication you're gonna um own a one percent interest in the

syndication and you're going to get one percent of the appreciation one percent of the cash flow one percent of the

depreciation um just like you were doing it yourself and investing all the money so that you

have a hundred percent of it the the the syndication is not for someone who wants

to get in their truck drive to the job set the guys up drive the lows get the

stuff help carry it in you know put a sign out front that says for rent get

the calls show that show the place rent the unit manage it wake up in the middle of the night change the toilet that's

not what a real that's not who a real estate syndication is for a real estate syndication is for someone who wants Pat

you know passive income gotcha and there's two ways to do it and a lot of people do it both ways that's how I do

it I run my property management company I'm on the ground dealing with the the pros and cons of real estate but I've

also invested passively in other people's syndications and you get that mailbox money which is the the best

money there is that's yeah 100 I wish I had that

mailbox money so well you're you're young you're just you're you're getting started you make it happen

most definitely and you know I actually still have a day job I have a nine to five okay yeah and I so I do wholesaling

on the side I treat it like a full-time job and I even told people that everyone's like well why don't you just

go full time you know you're you're doing pretty well and I'm like yes I I

am um but I want to the only time the only way I

will quit my job is if I replace my income with

with um either rental income or passive money income right something that's

consistently coming in right yeah I know and people people call me and say hey

Stuart I want to quit my job and be you and I say that that's actually not me I've never quit my job I work as hard as

now as I ever did uh running in the pension business because I don't ever want to lose that uh trading uh my hours

for money uh but yeah in in the in the short term uh I want to be trading my

apps for money I want to be investing in real estate and investing in this business so now I've got multiple

streams of income all of which I save up and buy more real estate so that I've I'm not the guy on the beach there might

be guys on the beach but that's not that's not me so tell me a little bit about you know

with you getting a lot of a you know Property Management uh

you know other people wanting to you know for you to

to take their deals or not their deals sorry uh to take their properties and manage their properties and things like

that how is it you went from doing Property Management from your just all your property where you're the only one

you have to answer to to now a lot of other people that even though they're paying you now you still have to

kind of answer to them as as owners of the property yeah you've got to have a temperament uh

Property Management property management is really tough when you're the owner and then it's doubly tough when you're

in the middle of the tenant and the owner so I had a client had a client recently on the property side who said

uh no we're we're not fixing that and I had to go to the tenants saying sorry we're not fixing that and then the Ted

said okay well if you're not fixing it I'm not paying rent so then you got to go back to the client and say we really need to fix it if they're going to stop

paying rent and then the client said no a victim so then I go back and I say hey

look if you're you know we technically don't need to fix that and if you don't pay your rent then we're going to have

to evict you and she said Okay a victim me so then I go back to him and he says evict me and I go back to her you know

so that that's the tough part uh property management and if you don't have the temperament for it where you're

just uh doing it more in like a robotic fashion instead of getting like all excited and all you know angry and the

passions Run High you're not gonna last very long and so really it's just

focusing on the facts and focusing on the documents and trying to keep the emotions out of it

so 100 percent ideal I wholesale a lot of

properties and um probably I started wholesaling and I still do a little bit inside Detroit

what areas would you see are you seeing because I know you do Property

Management inside Detroit um what areas are you seeing that are

good areas I there's a lot of bad bad areas and things like that but what are

good areas to invest in um and what what do you look for in

screening your tenants in order to make sure that you don't have to go to the eviction process as least as possible

yeah so the city of Detroit is tougher now because default rates are skyrocketing I was just hired to manage

136 apartments in 30 different buildings in the city of Detroit as a property management client and in the 136 units

uh over 60 or 70 tenants are delinquent in their rent and that's really just an

impossible situation uh where more than 50 percent of the tenants are delinquent their rent you want to have like five

six seven percent at the very most of your tenants being delinquent in the run this this client has uh 50 plus uh

delinquish um and so I am not a uh

Detroit neighborhood expert and I can't speak to that question as well I would

like I'm a Detroit property manager expert you give me a building in Detroit I'll manage it uh as good as anybody but

I can't tell you what neighborhood invested and what not to uh but if you send me an email I can introduce you to

a few folks who can that's what I said oh that's awesome what I don't know the answer to question I say send me an

email and I'll introduce you to the guy who knows most definitely and that's the key thing

is is that uh you know there's a lot of people back in my this is just my

opinion because I've I've been wholesaling a lot in Detroit um you know since I started and a lot of

people think okay this is back in you know 2020 2021 oh we're still there

where you you can be evicted it takes nine months to a year to to evict you

and even though they made it harder the the state has

made it harder still for us to uh uh evict in inside Detroit uh it's still a

lot faster than it was when we did have covet we can actually get court dates you know yeah

um and so on and so forth but um you know

hopefully how do you screen your tenants to try to avoid as much of that

yeah our requirements in the state of Michigan are a 600 minimum credit score three times income no evictions no

bankruptcy no collections other than maybe some minor medical Collections and

a good rental reference and if you don't have that we require a uh cosigner obviously that works much better in

downtown Ann Arbor than it does in a neighborhood in Detroit or Flint or Pontiac but you've just got to be uh

careful and and select your residence uh you know you've got to select your best applicants in those areas

right and you could you can Flex on those requirements if necessary if you're not getting that to keep the

occupancy you want you can lower those requirements a bit and and tweak them yeah and I meant was actually saying

that Sierra funds are are a big problem and actually I think Sierra funds have

actually grown out have you heard that yeah we're done we're done I haven't

filled out a Sarah application in probably six months and we just got our

last payment maybe two weeks ago I don't really expect any other Sarah payments

they stopped taking applications yeah maybe a few and maybe a few in Detroit

are still coming but that's kind of uh Gone by the wayside um yes now do the judges know that and

respect that that's another uh thing we'll see how they play it out but

um yeah uh Sarah created a major cultural problem uh where we've got

people that were paying the rent just fine until covet happened nothing happened to them to affect their income

they just gotten have it and not paying and now they're not paying still it's a they created some cultural and with that

said it did help out people legitimately too I've got but I've got dozens of examples I could rattle off about how it

really helped both the landlord and the tenant but there's no question in that some people are taking advantage of it

yeah so I might ask another questions what is your stance on rent control policy from Lansing uh some legislators

are are trying to introduce the bills uh yeah have you heard anything about that

yeah I don't get really too concerned about what happens in the economy and I don't really get too concerned about

what happens uh from a political standpoint because I've just always

outsmarted and outworked the competition and so if they pass rent control obviously

that'll put a cap on the value of real estate it'll probably yep break buying opportunities unexpected buying

opportunities and we'll figure out a way to to get around it rent control is also illegal at the federal level so I don't

see anything that anyone at the State of Michigan would do would affect that but um yeah I've been I don't spend too much

time on that what I spend time on is evaluating off-market mid-sized apartment buildings and just buy them

and manage them yeah so that brings us to an another question is is what you

know what are you um like how you acquire these properties

are you going out and buying a loan or are you doing this straight through your syndication and through your calculate

through BL Capital um I mean how does

how would say you don't have that say you're mean okay and I don't have

nothing like that How would how would you say I go out and buy a 20 unit apartment building

you know um would you buy Saving just saving up 20 down or

uh if you've got limited cash and you've got a deal uh what you should do is put

together a small partnership an LLC where you are an investor and then you

invite several other investors into the deal and um set it up not as a syndication but as

like a joint venture um gotcha and you just have like let's say it's a four unit apartment building

four hundred thousand dollar price hundred thousand dollars cash three hundred thousand dollar loan but you

only have twenty five thousand and you need seventy five thousand for investors you just create a uh you just create an

LLC and have uh three guys come in for twenty five thousand each and then the

four of you on the the deal and then you charge them some fees to put it together because

you're the one doing the work so right so um so I'm always looking for deals that

I can bring Partners in and I say um you know they bring in the money I'll

I'll run the project you know so therefore I get whatever we agree upon

whether it be they don't have to do anything so therefore you know they get 50 of the deal I get 50 or or 70 30 or

however we work it out yeah and you know so is that something realistic that a

investor uh would do uh I I would say that you need to invest

some of your own Capital uh because me as an investor I'm not investing in something unless someone's vesting in

some of their own Capital but if you're young and starting out it doesn't need to be a lot uh right you know I'd put in

I'd put in three quarters of it you know if the guy in a quarter and doing it you

know okay oh yeah that's good to know that's you know that that's what I'm I'm

trying to you know for me because the thing is is that I all my whole family

money actually has gone to my and I've been open with this with my channel that

we've been uh all our wholesaling money has gone to um updating our personal house so you

know I gotta make the wife happy first that's first and foremost so so after

that is done then I'll be able to start saving up and actually doing deals on my

own yeah and I say one one thing at a time for

sure uh just keep hustling and and getting that first goal accomplished and then start saving money for

for multi-family and uh uh Randy we've been going for an hour and seven minutes got any final

questions yeah so sorry about that uh oh no problem I love it yeah so no just just

one last question is is where are you going in the future so what it what is your future goals and what do you uh

what do you have that maybe anybody here could even help you out with uh or

anything like that yeah okay great so my my career goal is to buy bigger nicer easier to manage

stuff uh the easiest part spot to get started is Class C Class D value add a

ton of work type projects and that's naturally where a lot of guys start out and that's where I started out and I've

been dealing with for a long time I'd like to sell some of that harder to manage stuff and trade it into some

nicer easier stuff um you know buildings where you can

attract the highest of quality people the highest credit scores the highest incomes people that treat your property

better than some others might so that's one of my uh career goals and then

people that are listening to this the way you can help me is invest with me you know contact me at bocapital.com or

on Facebook or on LinkedIn I'm Stuart Beal or also hire us to manage your property

we'll Manage Property anywhere in the state of Michigan whether it's a single family home up to the largest property

we ever managed was a 468 unit apartment building and then also if you're a

contractor listening we always need good contractors and then also if you need help with something that you are working

on you have questions you want me to look at a deal with you I'll give anyone an hour of my time

and gladly look at a project with you meet up for lunch I do lunches a lot too

where we meet together three four guys at a time so yeah let's let's stay in touch let's keep announcing

yeah so Emma does did ask uh do you deal do deals out of Michigan and obviously

we know you do in Ohio um because you said Toledo uh yeah and he said if so where so is there any

other places yeah so I just invest an hour with a driving distance in my house basically and that's an I live in

Ypsilanti so that covers Toledo anywhere in metro Detroit and uh Lansing although

I did make an investment in Grand Rapids just because I think that it's a really fast growing area and so you know I

thought that might be a good idea but mostly just uh close by I want to be able to see a touch and feel it

yep awesome and then are you doing any development where you may be buying a

big chunk of land and building apartment buildings I've never bought a building I've never

built a building excuse me because construction costs in the state of Michigan has always been 300 percent

higher than you could buy at a building for uh as an example I bought a 60 unit in Monroe that came with some vacant

land and I asked the contractor to quote building the 60 unit and I bought the 60

units that were there for 2 million and he said it would cost 12 million to build the next 60 units so obviously

that's all doesn't work you know so I know I'd like to but I've never done it okay awesome

conversation yeah most definitely and we appreciate it we appreciate you coming

on this channel and seeing anything and if you have any questions for Stuart

Beal get a hold of them at Beale Capital uh uh you know any of his link his

LinkedIn his Facebook channels or anything like that and you can also invest with them as well so I really do

appreciate you coming on on with us and at least showing us that you know hey

anybody can do it as well um and I really really honestly like I

actually helps me a lot that you know talking about when you started when you were a

kid I think that more parents should should have started out like your parents did

um and I I'm trying to get that's another goal of mine eventually once I

get successful with this channel is I you know hit as much younger people as possible so they can uh get that in

their head as early as possible awesome let me leave you with my email address it's uh s yield

s-b-e-a-l at gobiel g-o-b-e-a-l.com and email me as well

awesome so awesome definitely do that and if again if you have any questions

if you have any deals or anything like that get a hold of get a hold of Stewart bill you can also JV with me my number

is here and my emails in the uh description below I appreciate it start

I hope you have a great day thank you bye