Latest / Earn Your Leisure / Study Hall: Build a Real Estate Empire with Lord of the Slums

Transcript

Study Hall: Build a Real Estate Empire with Lord of the Slums · Earn Your Leisure

0:00
Speaker 1: You just realized your business needed to hire someone yesterday.
0:04
Speaker 1: How can you find amazing candidates fast easy? Just use Indeed.
0:09
Speaker 1: Stop struggling to get your job posts seen on other
0:12
Speaker 1: job sites. With Indeed sponsored jobs, your post jumps to
0:16
Speaker 1: the top of the page for your relevant candidates, so
0:19
Speaker 1: you can reach the people you want faster. According to
0:22
Speaker 1: Indeed data, sponsored jobs posted directly on Indeed have forty
0:26
Speaker 1: five percent more applications than non sponsored jobs. Don't wait
0:30
Speaker 1: any longer, speed up your hiring right now with Indeed,
0:33
Speaker 1: and listeners of this show will get a seventy five
0:36
Speaker 1: dollars sponsored job credit to get your jobs more visibility
0:39
Speaker 1: at indeed dot com slash pod Katz thirteen. Just go
0:45
Speaker 1: to Indeed dot com slash pod katz thirteen right now
0:50
Speaker 1: and support our show by saying you heard about Indeed
0:53
Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is
0:57
Speaker 1: all you need.
1:05
Speaker 2: All right, guys, So a lot of people asks us
1:07
Speaker 2: how do they make a podcast? So I'm let you
1:09
Speaker 2: on a secret on the easiest, most productive way to
1:13
Speaker 2: start a podcast and get it up and running, and
1:15
Speaker 2: that is the app called anchor is free. They have
1:19
Speaker 2: all kinds of cool creation tools that allow you to
1:21
Speaker 2: record and edit your podcast right from your phone a computer.
1:24
Speaker 2: They will distribute your podcast for you to all of
1:27
Speaker 2: the major outlets including Spotify, Apple, Google, manymore, and you
1:31
Speaker 2: can make money from your podcast with no minimum listenership.
1:34
Speaker 2: It's everything you need to make a podcast in one simple,
1:37
Speaker 2: easy place. So if you're interested in starting a podcast,
1:42
Speaker 2: go download the free Anchor app or go to anchor
1:46
Speaker 2: dot fm to get started.
1:48
Speaker 3: Let's do it. My graduates from my school being force
1:57
Speaker 3: backdrop drop like drop bag, drop drop. All right, so
2:14
Speaker 3: we're going to go into the nitty gritty.
2:16
Speaker 4: But before we start, you have to acknowledge this because
2:19
Speaker 4: we don't want this to go with people said, so, okay,
2:22
Speaker 4: twenty twelve, which was seven years ago, so.
2:27
Speaker 3: You borrowed thirty thousand, yes, right to your.
2:31
Speaker 4: Second investment property and then from there you kind.
2:36
Speaker 3: Of just learned the ropes and you're at where you're
2:39
Speaker 3: at now. So in the words of Kendrick Gloogaugh, he
2:44
Speaker 3: took thirty thousand in freak to twenty five million seven years.
2:51
Speaker 5: So yeah, it's I'll say twenty sixteen though, that's that's
2:54
Speaker 5: kind of like what the magic happened though, Okay, it's
2:58
Speaker 5: kind of like that's when like I was consistently able
3:01
Speaker 5: to purchase a property, fix it up, rents it out,
3:05
Speaker 5: and then once it's already rents it go to a
3:06
Speaker 5: lender to catch it out.
3:08
Speaker 3: All right? So can we all right? Son? We so
3:10
Speaker 3: can we get it? To look at the chart though,
3:12
Speaker 3: you noticed how it's kind of like I was like, oh,
3:14
Speaker 3: it's like, you know, get a three, it's like one one, yeah, but.
3:17
Speaker 6: It's like twenty sixteen. That's kind of like when it
3:20
Speaker 6: really like made that a h. So match is twenty fifteen.
3:22
Speaker 6: I'm twenty fifteen, So can we do? That's when I,
3:24
Speaker 6: you know, the first cashown. Can we go to twenty fifteen?
3:26
Speaker 6: When when you start to really take off?
3:28
Speaker 4: And kind of just because that's like your blueprint right
3:31
Speaker 4: as far as yeah, can you just break that.
3:33
Speaker 3: Down as far as the flips, how you look at it?
3:35
Speaker 3: All right? I can you just tell exactly like what
3:38
Speaker 3: you do?
3:39
Speaker 6: So what I do is like when I look at
3:41
Speaker 6: a house is like try not to look at a house.
3:43
Speaker 3: I try to look at numbers. So it's in the.
3:46
Speaker 6: Formula is basically if I keep try like of my
3:50
Speaker 6: portfolio and I ask myself like, all right, is this
3:52
Speaker 6: going to increase my network?
3:54
Speaker 3: And then the other question is is this going to
3:56
Speaker 3: increase my cash flow?
3:57
Speaker 5: And if the answer is yes, and it's kind of
3:59
Speaker 5: like all right, the thumbs up, you know, and I
4:01
Speaker 5: could get this.
4:01
Speaker 6: But now there's the other question now is like how
4:04
Speaker 6: fast and can I get my money back on this deal?
4:07
Speaker 6: And then there's like if all three are yes, then
4:10
Speaker 6: that's when I jump on the deal. Okay, yeah, this
4:11
Speaker 6: is a deal for me. So it's like every property
4:15
Speaker 6: that I see, I see with that intention is like
4:17
Speaker 6: I think, like the most important thing you need to
4:19
Speaker 6: know is how much can a house a praise for?
4:22
Speaker 3: And then it's like the key component here is.
4:24
Speaker 6: A praise for which took me a while to understand
4:27
Speaker 6: because before I would look at a house and I
4:28
Speaker 6: was just like such an honest guy, and I would
4:30
Speaker 6: look at it, I would telling myself, like, you know
4:31
Speaker 6: what that ask I could sell that for two fifty,
4:33
Speaker 6: so it's worth two fifty. But going back now to
4:37
Speaker 6: like the inner City, and it's kind of like why
4:39
Speaker 6: I stuck to Patterson because I felt like I knew Patterson,
4:41
Speaker 6: like the pomb with my hand and not sure if
4:45
Speaker 6: it's like if it's you know, if it's the same
4:47
Speaker 6: for every inner city.
4:48
Speaker 3: But let's lay Patterson, get you get a block. This
4:52
Speaker 3: corner right here is.
4:53
Speaker 6: Like where all the hustlers are at, and it's a
4:56
Speaker 6: lot of crime basically, right, But this corner right here
4:59
Speaker 6: was just the same block, super quiet.
5:01
Speaker 3: It's cool. You could, you know, you could walk by.
5:02
Speaker 6: Nobody's gonna, you know, try to hustle you for you know,
5:04
Speaker 6: to buy any any drugs or anything like that.
5:06
Speaker 3: Yeah, but now they're on the same exact block.
5:09
Speaker 6: So now you picture somebody coming from out of town,
5:11
Speaker 6: like an appraisal or anyone, and now they see this
5:14
Speaker 6: property over here. But now when they look at comparables,
5:17
Speaker 6: they're looking at the whole neighborhood and go to look
5:19
Speaker 6: for the meeting area. So it's like if this property record,
5:22
Speaker 6: you know right here, basically let's say this one is
5:27
Speaker 6: cells for two hundred, but you know, let's say this
5:29
Speaker 6: one sells for for for two fifty. Let's just say, right,
5:33
Speaker 6: but now if you're buying this one and you're buying
5:35
Speaker 6: it through a short cell, it's gonna be a foreclosure.
5:38
Speaker 6: More than likely they're gonna use this one here as
5:40
Speaker 6: a comparable. So now this brings down the value of this,
5:43
Speaker 6: but this one is worth more, and you know it's
5:45
Speaker 6: worth more because you know the area better. So and
5:48
Speaker 6: then going back to the other thing about knowing about
5:50
Speaker 6: you know, appraisal one values, it's you know, that's kind
5:54
Speaker 6: of where it's at because it's like you know that
5:56
Speaker 6: this one's gonna suffer less and this one's gonna sell
5:58
Speaker 6: for more. But when you put those two paper, depending
6:02
Speaker 6: which way it goes, remember as I told you earl
6:04
Speaker 6: Ago is like appraisal is not a science, is an art.
6:07
Speaker 6: So depending on the artists, depending which way they want
6:09
Speaker 6: to go, that value could come in at two hundred,
6:11
Speaker 6: can come.
6:11
Speaker 3: In at two fifty.
6:12
Speaker 6: So I try to look for the house it's worth
6:14
Speaker 6: two fifty that I know the value is going to
6:15
Speaker 6: come in at two hundred.
6:16
Speaker 3: It's it's kind of like now off the bat.
6:17
Speaker 6: As soon as I buy the property, already know I
6:19
Speaker 6: have fifty thousand inequity. The other part of it too,
6:22
Speaker 6: which is why I always try to look for properties
6:24
Speaker 6: that need renovation, because most people do not want to
6:28
Speaker 6: deal with renovations.
6:29
Speaker 3: Most people want to just grab the keys, go inside
6:31
Speaker 3: the house. And they're good to go. So when you
6:33
Speaker 3: get a property and you're renovating, you adding value to it.
6:36
Speaker 6: So now let's just say this scenario, right, you ended
6:40
Speaker 6: up picking this house for two hundred, but you know
6:42
Speaker 6: it's ready off the bat, it's already worth two fifty.
6:44
Speaker 6: But now you let's say you throw twenty five into it.
6:48
Speaker 6: Now it's not two seventy five. Now it's three hundred.
6:50
Speaker 6: So you got it more value to it.
6:52
Speaker 7: So when you're doing that right, when you're about to rentedy, right,
6:55
Speaker 7: I'm assuming on your first property you didn't.
6:57
Speaker 3: Have a team or did you go in right?
7:00
Speaker 7: So what was the process of selecting a team of contractors,
7:05
Speaker 7: like honest people out of right so that you don't
7:08
Speaker 7: get ripped off? Or was it like you know what,
7:09
Speaker 7: I'm gonna learn the craft and do it myself, or
7:12
Speaker 7: what was the process in creating that.
7:14
Speaker 6: Well first properties, let's just say the second property that
7:18
Speaker 6: I purchased, right, that one, I did not do a
7:20
Speaker 6: gover renovation. I just went in through a couple, you know,
7:22
Speaker 6: some line and the floorings, painting, the walls, patched up
7:24
Speaker 6: a few holes.
7:25
Speaker 3: I think I did like one bathroom.
7:27
Speaker 6: Had I purchased the house today that probably would have
7:30
Speaker 6: been a complete gut renovation.
7:31
Speaker 3: So you have to do you know, where you can
7:33
Speaker 3: handle what you know.
7:36
Speaker 6: So when you start off, you know, advice everybody, just
7:38
Speaker 6: start off, you know, with light renovations and kind of
7:41
Speaker 6: like work your way up. The way it works is
7:43
Speaker 6: basically you get yourself, you know, the one handy guy,
7:46
Speaker 6: which once again, this is why it works out with you.
7:48
Speaker 6: If you're able to buy in your neighborhood, you can
7:51
Speaker 6: make a few phone calls ady, you know, like, oh yeah,
7:53
Speaker 6: my cousin has a cousin who is pretty handy.
7:56
Speaker 3: He can help you out. So you start off with
7:57
Speaker 3: the handy guy.
7:59
Speaker 6: But after a while, you know, when you start doing
8:01
Speaker 6: more incense renovations, you know, they might refer you to
8:04
Speaker 6: someone else. Or it's like, you know, just go to
8:06
Speaker 6: own Deepot's like and you study, like home mebles worn
8:09
Speaker 6: by most of my materials, and it's like and if
8:11
Speaker 6: you go in there and you study, when you see
8:12
Speaker 6: somebody walking out and all they have is just electrical
8:15
Speaker 6: materials that you know, this guy very likely is an
8:17
Speaker 6: electrician or at least knows how to do electrical work.
8:19
Speaker 3: Same thing with a plumber and so forth.
8:21
Speaker 6: So it's kind of like and you sort of build
8:22
Speaker 6: up your team, but it's really a trial and never
8:24
Speaker 6: unless you get some refrols you're gonna get. You know,
8:27
Speaker 6: a lot of people act me a lot of times
8:28
Speaker 6: it is like, have ever lost money in real estate?
8:31
Speaker 6: And the answer is no, just because I've been able
8:34
Speaker 6: to buy properties to have a lot of equity in them,
8:37
Speaker 6: but that doesn't mean that it not lose money on
8:38
Speaker 6: the deal. So it's like if I go in, I
8:40
Speaker 6: get get a property I'm projecting and make let's say
8:43
Speaker 6: fifty thousand, and I get this one contract and you know,
8:45
Speaker 6: he messes up and I end up losing ten thousand
8:47
Speaker 6: or time still make forty thousand.
8:49
Speaker 3: You know, but I didn't really didn't like lose money.
8:52
Speaker 3: But you know it's still agree Yeah, yeah, it's still agreeing.
8:54
Speaker 6: You know, contractors is triggering with contractors is like it's
8:57
Speaker 6: like that's why I call them contractors, because you're not
8:58
Speaker 6: careful they will kind of So what I do now
9:01
Speaker 6: to minimize the chances of somebody ripping me off is
9:05
Speaker 6: basically I pay for all the materials, which.
9:09
Speaker 3: Is pretty cool too, because it's like you start getting
9:10
Speaker 3: your mouth so I pay for the materials.
9:14
Speaker 6: I make what I call a draw schedule, which is
9:18
Speaker 6: the same kind of schedule you have to give your
9:19
Speaker 6: hard money lender.
9:20
Speaker 3: When you get a loan from a lender. You can't
9:22
Speaker 3: just tell the lender, oh, I need fifty thousands for renovation.
9:24
Speaker 3: You gotta kind of like.
9:25
Speaker 6: Map it out, like all right, I'm gonna need two
9:28
Speaker 6: thousand take up the house. I'm gonna be this much
9:30
Speaker 6: for this, and you kind of like do every step
9:33
Speaker 6: of of you know what's required, you map it out.
9:35
Speaker 6: When this is already mapped out, then you know you
9:37
Speaker 6: start pulling like the money out all right.
9:40
Speaker 4: So okay, so whole verse flips because you hear these
9:44
Speaker 4: two kinds of trains of thoughts in realitate.
9:46
Speaker 3: Right, some people only want to flip. Some people only
9:49
Speaker 3: believe in buying and holding. Some people do both. You're
9:51
Speaker 3: more on buying holding side, right, Yeah, more buying holding.
9:56
Speaker 6: It's it's it's a little more complicated because it's like
10:00
Speaker 6: when you buy and flip, it's pretty sure straightforward. You
10:01
Speaker 6: buy a house, you renovate it, you fix it, and
10:03
Speaker 6: you suddenly you make a profit. We're trying to hold it.
10:06
Speaker 6: You know, it goes back to the open of appraisal.
10:08
Speaker 6: Whatever it doesn't you know, it doesn't come through, and
10:10
Speaker 6: the appraisal doesn't come in right, so you know you.
10:13
Speaker 3: Kind of got to like really, you know, maneuver your
10:16
Speaker 3: way around that.
10:16
Speaker 6: But but it's if you buy a house as again,
10:20
Speaker 6: you follow it like that phone to make sure you
10:22
Speaker 6: follow the cash law. It's then about real estate to
10:25
Speaker 6: always all numbers. So you kind of have all the
10:27
Speaker 6: numbers in front of you. Basically, you already know how
10:30
Speaker 6: much money you're going to collect the runt. You already
10:32
Speaker 6: know how much you're paying for the property over time.
10:35
Speaker 6: Once you already know this, you already know what you're
10:37
Speaker 6: gonna spend the renovation, so you kind of already know
10:39
Speaker 6: what the mortgage is going to be, what the rent
10:40
Speaker 6: is going to be, what the profit is going to be.
10:42
Speaker 6: And so when you see it's a really good profit,
10:45
Speaker 6: you keep it and you know you want to let
10:46
Speaker 6: it go.
10:46
Speaker 3: You want to keep it.
10:47
Speaker 4: So how do you learn that, like to say, okay,
10:49
Speaker 4: all right, I understand that you want to buy a
10:52
Speaker 4: home for cheat and fix it up. But the average
10:55
Speaker 4: person they don't have any knowledge of like, okay, how
10:57
Speaker 4: much this is actually going to cost to renovate, or
11:01
Speaker 4: how do I know it's a good deal, Like you
11:03
Speaker 4: know what I mean, Like, if you're just going in
11:04
Speaker 4: with no team, just by yourself, how do you It's.
11:07
Speaker 3: Very likely you're gonna be a first time on buyer.
11:09
Speaker 6: So I'd recommend either go for a three family or
11:11
Speaker 6: four family and light renovation. So it's like you know,
11:15
Speaker 6: paining the walls, you know, may throw some lemon the flooring.
11:18
Speaker 6: Make sure you know how much rent is coming in
11:19
Speaker 6: on this property, and then also see how much you're
11:22
Speaker 6: paying for it, and know what your mortgage is going
11:23
Speaker 6: to be. So the difference that's going to be your
11:25
Speaker 6: cash flow. As far as like what is the number?
11:28
Speaker 6: It is kind of like for me personally, like for
11:29
Speaker 6: for any property that I get, fifteen hundred is kind
11:31
Speaker 6: of like my number fifteen hundred in rent.
11:33
Speaker 3: The difference between the mortgage and the run.
11:35
Speaker 6: So let's say if the mortgage is two thousand, I
11:37
Speaker 6: needs to be coo in thirty five.
11:39
Speaker 3: So the way I do that is basically.
11:41
Speaker 6: Five hundred goals aside and that's for your vacancy is
11:43
Speaker 6: your repairs, so things like it happened in the house
11:45
Speaker 6: and then the other dolls.
11:46
Speaker 3: It's kind of like your profit.
11:47
Speaker 4: Okay, that's the minimum that you weren't that's yeah, hutle
11:50
Speaker 4: thumb for me for my area.
11:51
Speaker 6: That's kind of like, you know, if those are the numbers,
11:53
Speaker 6: then it's a keeper and then and I go through.
11:55
Speaker 3: I'll go through on the deal. If those are not
11:57
Speaker 3: the numbers, and I just kind of like passed up
11:58
Speaker 3: on the deal.
11:58
Speaker 4: Do you have a minimum as far the value of
12:00
Speaker 4: the home, like you want to get it for at
12:02
Speaker 4: least fifty thousand under its market value or something like that.
12:06
Speaker 6: Yeah, So going back to like the formula is basically
12:10
Speaker 6: the value of the property. Then I look for what
12:13
Speaker 6: can I catch this out for? Like, right now, I
12:15
Speaker 6: have a lender who gives me seventy five percent months
12:17
Speaker 6: of value, so I already know value. Multipply that by
12:20
Speaker 6: the seventy five percent. Let's just say the number is
12:23
Speaker 6: two hundred, so kind of I use two hundred as
12:26
Speaker 6: my mark, right, and then I say, okay, now I
12:27
Speaker 6: have the two hundred thousand, my hair, look at how
12:29
Speaker 6: much you know I'm paying for the property. Let's just
12:31
Speaker 6: say it's there's one hundred. That's one hundred spread. Now
12:34
Speaker 6: I look at how much is going to cost me
12:36
Speaker 6: to renovate. It's gonna cost me one hundred to renovate,
12:39
Speaker 6: and then cash out is kind of two hundred. There's
12:41
Speaker 6: two hundred basically, like there's no there's no money in
12:44
Speaker 6: there basically, so it's kind of like there's one hundred.
12:46
Speaker 6: Then I have to be like, let's say one fifth
12:47
Speaker 6: or even one seventy five, so that once I'm done renovating,
12:50
Speaker 6: I do the cash out, I'm actually able to get
12:52
Speaker 6: my money back. Like the goal is not so much
12:54
Speaker 6: to make a profit on the cash out, but just
12:56
Speaker 6: to at least get your money back so you can
12:58
Speaker 6: move on to the next one.
12:59
Speaker 3: Because if you do it correctly, if let's say you have.
13:03
Speaker 6: Thousand dollars to buy a property, you go out, you
13:07
Speaker 6: buy a property, you renovate it, you rent it, and
13:10
Speaker 6: then you cash it out. If you guys needs to
13:12
Speaker 6: get back your thirty thousand, and it's like, let's say
13:15
Speaker 6: it's from it will take you six months to do that.
13:18
Speaker 6: So six months later, basically you got your thirty you know,
13:20
Speaker 6: you got your thirty thousand.
13:21
Speaker 3: Dollars back, and you do that again. So like it's
13:22
Speaker 3: kind of like with.
13:23
Speaker 6: That same money every six months you can buy a property,
13:26
Speaker 6: or every three months, depending how.
13:27
Speaker 3: Fast you move. And you're taking your money after some
13:29
Speaker 3: people wild clear you're taking your money out. Be it
13:32
Speaker 3: not home equity loans, right, you're taking your money out
13:35
Speaker 3: to the hard money, like not just the hard money.
13:38
Speaker 6: So key word is asset based lender, acid based lender.
13:42
Speaker 3: Yes, it's income based lenders.
13:44
Speaker 6: Will be like it Wells Fargo or your Bank of America,
13:46
Speaker 6: you know, your local bank, they're the income based.
13:47
Speaker 3: You know, you go to them, they.
13:48
Speaker 6: Want to see the credit score, they want to you know,
13:50
Speaker 6: they want to see that you have a really good
13:53
Speaker 6: income taxes.
13:53
Speaker 3: You know, they're actually making good money. Yourself. Me, all
13:56
Speaker 3: of my money comes from real estate. So when I
13:58
Speaker 3: go to a bank and you know, I.
14:00
Speaker 6: Still try it out once in a long because they
14:01
Speaker 6: got a really good interest right now, always getting that
14:03
Speaker 6: for the loans, because it's like all they see is like, oh,
14:05
Speaker 6: they just see all these expenses. Everything's coming from real estate.
14:08
Speaker 6: So for them it's like, oh my god, it's like
14:10
Speaker 6: such a high risk.
14:10
Speaker 3: You know, we can't we can't rap with them.
14:12
Speaker 6: But when you go to these ascid based lender, they
14:14
Speaker 6: don't see any of that. All they're seeing is like,
14:15
Speaker 6: what is the house? Like, this is the house right now?
14:17
Speaker 6: What how much you think is worth? It's worth this much?
14:20
Speaker 4: All right?
14:21
Speaker 3: This is how much? N Now there's how much I'm
14:22
Speaker 3: collecting the rent. So it's like all right, cool, yeah,
14:24
Speaker 3: we could give you the loan on that. So outside
14:25
Speaker 3: of hard money lenders, who else is the asset based
14:27
Speaker 3: slender acid based slender the one I used right now.
14:31
Speaker 3: They're called Visio, So they're like they're like companies, Yeah, yeah,
14:34
Speaker 3: the companies nation wide No, no, this is no.
14:38
Speaker 6: They're nationwide legit bank companies, but they just work with investors.
14:43
Speaker 6: What's the one that you use? Visual lengthing is the
14:46
Speaker 6: one that I'm currently using right now. That's another thing too,
14:48
Speaker 6: I man, you got to keep these guys in rotation
14:50
Speaker 6: because it's like the other lender that I use before,
14:52
Speaker 6: they will give me seventy percent. Now this one gives
14:54
Speaker 6: seventy five percent. That five percent that's a huge difference.
14:57
Speaker 6: You know. It's if you're talking about three hund two
15:00
Speaker 6: thousand dollars the house that's fifteen thousand.
15:02
Speaker 3: Dollars, what's the interest rate usually from that compared to
15:04
Speaker 3: like a regular traditional ban the traditional bank. My choice
15:07
Speaker 3: was it like five percent. These guys are choice like
15:09
Speaker 3: a six and a half. Yeah, and this is a
15:12
Speaker 3: five year arm sorry. You know after five years you
15:14
Speaker 3: have to either sell a house and have to refive.
15:17
Speaker 3: And we kind of spoke about camera, but we said harmony.
15:19
Speaker 7: Anybody could be a hard money lender, right, either do
15:21
Speaker 7: it individually or you can team up.
15:23
Speaker 3: With a bunch of people exactly.
15:24
Speaker 7: And I think one of the other things is that
15:26
Speaker 7: the time frame, right, the timeframe when they want their
15:28
Speaker 7: money back is obviously a lot different, right, This is
15:30
Speaker 7: not a thirty year thing, right, they want their money
15:32
Speaker 7: back then, Like what are some of the time frames?
15:34
Speaker 6: Well, hard money lenders they want their money back ideal
15:36
Speaker 6: it like in one year. They might give an extension
15:38
Speaker 6: for another six months or another year. With these cash
15:41
Speaker 6: out has to base lenders, they'll give you loans for
15:44
Speaker 6: a fixed for five years, like the thirty year mortgage.
15:48
Speaker 6: But basically is it like an interest race for five years,
15:50
Speaker 6: seven years, or ten years.
15:51
Speaker 3: But after you know, at one point they want.
15:53
Speaker 6: You to either you know, refi them out sell the house,
15:56
Speaker 6: or you could go with the thirty year program.
15:58
Speaker 3: But the interest rate's gonna be a lot high. You
15:59
Speaker 3: might look at like a eight and a half nine.
16:00
Speaker 6: Percent, So I'd rather just go with the short terms.
16:03
Speaker 6: I figured out, you know, five years for me is
16:04
Speaker 6: like a long time, and I'm constantly evolving in real estate.
16:08
Speaker 6: So I figured, like, you know, get the lower interest
16:10
Speaker 6: rate just to increase the cash flow, and then in
16:12
Speaker 6: five years, I'll figure it out.
16:13
Speaker 3: You know, what's the next So what do you usually
16:15
Speaker 3: do in five years? What do you do?
16:17
Speaker 6: What's your game plan? But let's just say right now,
16:19
Speaker 6: I work with my portfolio right now. Right now, I
16:23
Speaker 6: just started building brand new construction houses. Those I'm not
16:26
Speaker 6: gonna keep. Had I done new construction a couple of
16:29
Speaker 6: years ago, I definitely would have kept them. But my
16:32
Speaker 6: mindset right now is to develop buildings. And I already
16:35
Speaker 6: have the land to start developing buildings. But I feel
16:37
Speaker 6: like that's like too far of a reach for me
16:38
Speaker 6: right now. So what I'm gonna do. I'm gonna end
16:41
Speaker 6: up selling about from ten to fifteen new construction. Sell those,
16:44
Speaker 6: get that money, and then start building the buildings. So
16:47
Speaker 6: like in five years, I already have a couple of buildings.
16:50
Speaker 6: Once I start developing the buildings, let's say if I
16:52
Speaker 6: developed a thirty in the building, I'm gonna start unloading
16:55
Speaker 6: thirty unions of these like small properties, like I don't
16:57
Speaker 6: want to deal with like the headqu of these small
16:59
Speaker 6: ones when I have thirty tenants in one section.
17:01
Speaker 7: If this sounds like monopoly, it is like I literally
17:05
Speaker 7: watched your vision board and like the last board is
17:08
Speaker 7: like and when I get all these things, I'll have
17:10
Speaker 7: my monopoly. So you're starting with the little the little
17:13
Speaker 7: greenhouses until you can get the red building right and
17:16
Speaker 7: once you start doing that.
17:17
Speaker 3: Three three green houses in one red hotel, that's that's
17:19
Speaker 3: hotel hotel.
17:21
Speaker 4: If you understand me, now I'll sell all the topics
17:23
Speaker 4: stand monopoly, you can understand how to make money in
17:25
Speaker 4: this world.
17:25
Speaker 6: I'm gonna take this right now, like the way I
17:28
Speaker 6: play Monopoly as a kid, and even now that's the
17:32
Speaker 6: same way I approach realistic. It's like my strategy when
17:35
Speaker 6: I play Monopoly is just you know, obviously you got
17:37
Speaker 6: to go around goal.
17:37
Speaker 3: You just collect the money.
17:38
Speaker 6: But whenever I land on a piece of property, I
17:40
Speaker 6: try to get that property. Like I focus is just
17:42
Speaker 6: getting like the property and then you know, focus on
17:44
Speaker 6: getting like kind of like the like the houses.
17:46
Speaker 3: So it's kind of like that sort of what I've
17:48
Speaker 3: been doing. It's like if I see a really good
17:49
Speaker 3: deal and I land on it, I'm gonna try to
17:51
Speaker 3: get it, you know, it's like nothing't let it pass out.
17:54
Speaker 4: Now.
17:54
Speaker 3: I own properties that are kind of like next to
17:56
Speaker 3: each other.
17:57
Speaker 6: If you look at a building anywhere you go and
18:00
Speaker 6: you really size up the building, you realize it's like,
18:02
Speaker 6: you know what, it's not that big of a land.
18:04
Speaker 6: It's just that a small piece of land. They just went,
18:07
Speaker 6: you know, pretty high up and they have all these units.
18:09
Speaker 8: So erners, what's up? You ever walk into a small
18:12
Speaker 8: business and everything just works like the checkout is fast,
18:16
Speaker 8: the re seats are digital, tipping is a breeze, and
18:20
Speaker 8: you're out the door before the line even builds odds
18:22
Speaker 8: are they're using Square. We love supporting businesses that run
18:26
Speaker 8: on Square because it just feels seamless. Whether it's a
18:29
Speaker 8: local coffee shop, a vendor at a pop up market,
18:32
Speaker 8: or even one of our merch partners. Square makes it
18:35
Speaker 8: easy for them to take payments, manage inventory, and run
18:39
Speaker 8: their business with confidence, all from one simple system. If
18:43
Speaker 8: you're a business owner or even just thinking about launching
18:45
Speaker 8: something soon. Square is hands down one of the best
18:48
Speaker 8: tools out there to help you start, run, and grow.
18:52
Speaker 8: It's not just about payments, it's about giving you time
18:55
Speaker 8: back so you can focus on what matters most ready.
18:58
Speaker 8: To see how Square can transform on your business, visit
19:01
Speaker 8: Square dot com backslash go backslash eyl to learn more
19:06
Speaker 8: that Square dot com backslash, go backslash eyl. Don't wait,
19:11
Speaker 8: don't hesitate. Let's Square handle the back end so you
19:14
Speaker 8: can keep pushing your vision forward. This episode is brought
19:20
Speaker 8: to you by P and C Bank. A lot of
19:22
Speaker 8: people think podcasts about work are boring, and sure, they
19:26
Speaker 8: definitely can be, but understanding of professional's routine shows us
19:29
Speaker 8: how they achieve their success little by little, day after day.
19:34
Speaker 8: It's like banking with P and C Bank. It might
19:37
Speaker 8: seem boring to save, plan and make calculated decisions with
19:40
Speaker 8: your bank, but keeping your money boring is what helps
19:43
Speaker 8: you live a more happily fulfilled life. P and C
19:46
Speaker 8: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
19:51
Speaker 8: eighteen sixty five is a service mark of the PNC
19:54
Speaker 8: Financial Service Group, Inc. P and C Bank National Association
19:58
Speaker 8: Member FDIC.
20:01
Speaker 1: You just realized your business needed to hire someone yesterday.
20:06
Speaker 1: How can you find amazing candidates fast? Easy? Just use Indeed.
20:11
Speaker 1: Stop struggling to get your job posts seen on other
20:14
Speaker 1: job sites. With Indeed sponsored jobs, your post jumps to
20:17
Speaker 1: the top of the page for your relevant candidates, so
20:20
Speaker 1: you can reach the people you want faster. According to
20:23
Speaker 1: Indeed data, sponsored jobs posted directly on Indeed have forty
20:27
Speaker 1: five percent more applications than non sponsored jobs. Don't wait
20:31
Speaker 1: any longer, speed up your hiring right now with Indeed,
20:35
Speaker 1: and listeners of this show will get a seventy five
20:37
Speaker 1: dollars sponsored job credit to get your jobs more visibility
20:40
Speaker 1: at indeed dot com slash pod Katz thirteen. Just go
20:46
Speaker 1: to Indeed dot com slash pod Katz thirteen right now
20:51
Speaker 1: and support our show by saying you heard about Indeed
20:54
Speaker 1: on this podcast. Terms and conditions apply hiring Indeed is
20:58
Speaker 1: all you need in the.
21:00
Speaker 6: City is where you're gonna find the buildings. You're not
21:01
Speaker 6: gonna find them in the suburbs. So now if you
21:04
Speaker 6: basically it's sort of just like monopoly to get you know,
21:06
Speaker 6: four properties, and on those four properties, like your pup
21:08
Speaker 6: a building.
21:10
Speaker 3: All right, So that at least perfect segue into our
21:12
Speaker 3: next segment where we're gonna talk about your next level
21:16
Speaker 3: of what you're doing, which you was just briefly talking about,
21:18
Speaker 3: but we're gonna go into details for the next level.
21:21
Speaker 3: All right, So we're playing. We're playing monopoly with real money,
21:24
Speaker 3: like the what was that video? Presidents shouted the shout
21:29
Speaker 3: that Jay we had the reference day. Yeah, we kept
21:32
Speaker 3: a lot easy two players. I'm gonna play with some
21:37
Speaker 3: real money, easy, Dame Big. We was kind of raised
21:40
Speaker 3: off for music. That's what we we. We relate to
21:42
Speaker 3: the music a lot.
21:43
Speaker 4: But if anybody from that era you remember they were
21:46
Speaker 4: playing Monopoly with real money, but.
21:49
Speaker 3: It is actually really playing monopoly like rat. It's bigger
21:55
Speaker 3: than rat. We're getting so all right, So now you
22:00
Speaker 3: talked about the blueprint as far as to buy the
22:03
Speaker 3: homes and then to get the money out of the
22:06
Speaker 3: homes and then buy another home and kind of keep
22:09
Speaker 3: that's like bone what you're saying that. See, all successful
22:12
Speaker 3: people have a plan, right, nobody just start.
22:15
Speaker 4: We had another guest on episode eleven, shot Derek Falcon.
22:18
Speaker 4: He was a great episode on He's a restaurant own
22:20
Speaker 4: in Baltimore, and he spoke about you have to have
22:24
Speaker 4: a vision, right his he was like, whenever he goes
22:26
Speaker 4: into something, he thinks about like what is his grandkids
22:28
Speaker 4: going to inherit?
22:30
Speaker 3: You know, that's like his play, like what's the grandkids
22:32
Speaker 3: going to inherit? Even though he doesn't even have kids yet,
22:34
Speaker 3: don't think so.
22:37
Speaker 4: But so that's like you got always think three steps ahead.
22:41
Speaker 4: So you already you're already playing three steps ahead.
22:43
Speaker 3: Right. So you did the you're doing the real estate.
22:46
Speaker 4: Thing with the mixed unit well multi level homes and
22:49
Speaker 4: things that nature, most of them homes. But the next
22:52
Speaker 4: play is a bigger play, right, Yeah, so we want
22:55
Speaker 4: to talk about that in this segment. So you told
22:58
Speaker 4: me over the phone when we spoke, and I saw
23:00
Speaker 4: the seminar, and now you're just buying plots of land,
23:03
Speaker 4: right and yeah, now you're a real estate developer.
23:06
Speaker 3: Yes, can you talk about that? Yeah.
23:10
Speaker 6: So a couple of months back, like I was with
23:12
Speaker 6: with Caesar and so we went out of a political
23:14
Speaker 6: function and we're just you know, chopping it up, and
23:17
Speaker 6: he showed me, he know, he's like, look like if
23:20
Speaker 6: he's lost day for sale, Like you're interested and I
23:23
Speaker 6: looked at him. I saw the addresses. I was like, man,
23:25
Speaker 6: I'm just garbage like.
23:28
Speaker 7: People for two seconds, because when I say lots right,
23:31
Speaker 7: a lot of people will think, oh, you're buying a
23:33
Speaker 7: parking lot.
23:34
Speaker 3: No, so I think that that goes over like they're like,
23:38
Speaker 3: he's finding your.
23:39
Speaker 6: Lives basically, that's where your properties, like the house is located, exactly, Okay,
23:42
Speaker 6: thank you.
23:43
Speaker 3: So he looks at him, so he's like, yeah, for
23:45
Speaker 3: the same thing.
23:45
Speaker 6: But as I'm looking through, I saw there was one
23:47
Speaker 6: address that popped up and it was two lots and
23:50
Speaker 6: it went next to two properties that already own that
23:53
Speaker 6: are right next to each other. So I was like, oh,
23:55
Speaker 6: wait a minute. I was been looking for that one.
23:58
Speaker 6: I was like, oh this was like, was like, yeah,
24:00
Speaker 6: let me get that list. He send it over to
24:01
Speaker 6: me and then rese out to the rotor. But I
24:03
Speaker 6: just wanted those two. I wasn't interested interested in the
24:06
Speaker 6: other ones. Yeah, So but the guy was like, now
24:08
Speaker 6: the seller he's only willing to basically sell the whole
24:12
Speaker 6: everything together, like he's not going to just make it
24:14
Speaker 6: pick which ones you want, So I still push for
24:16
Speaker 6: I was like, you know what, then I'm going boy,
24:18
Speaker 6: you know, I try to.
24:18
Speaker 3: Squeeze in half of them and like putting them off
24:20
Speaker 3: for like half. He's like, nah, he wants, he wants.
24:22
Speaker 3: You know, you gotta buy everything.
24:23
Speaker 6: So I low balled them on everything, and just with
24:26
Speaker 6: the idea, I said, you know what, I'm going to
24:27
Speaker 6: buy everything.
24:28
Speaker 3: And as soon as I buy it, did the numbers
24:30
Speaker 3: that if.
24:30
Speaker 6: He gives it to me at this price, I could
24:32
Speaker 6: just throw it back up the market, just make a
24:33
Speaker 6: few a few dollars on it. So get into the process.
24:37
Speaker 6: I ended up going on the contract. As I'm going
24:40
Speaker 6: on the contract, I'm started doing more research. I started
24:42
Speaker 6: researching brand new constructions and I noticed that they were selling.
24:46
Speaker 3: For like three fifty three thirty three sixty And.
24:52
Speaker 6: I realized that they are new constructions. But these new
24:55
Speaker 6: constructions were built in two thousand and three. Now these
24:59
Speaker 6: will be building twenty eighteen. So I was like, waiting,
25:01
Speaker 6: that means that these have to be worth a lot
25:03
Speaker 6: more than so at least three seventy five. So so so
25:07
Speaker 6: I figured, so the key is like, no number one,
25:11
Speaker 6: you gotta know what you can you saw something for
25:12
Speaker 6: so like I had to be seventy five. So now
25:15
Speaker 6: how much am I paying for these lasts?
25:17
Speaker 3: On average? I was like paying like twenty five twenty
25:19
Speaker 3: about twenty five thousand. I mean, how many left did
25:21
Speaker 3: you buy? Twenty two? Well two twenty five thousand a piece?
25:25
Speaker 3: Twenty thousand piece here? And there was like another like
25:27
Speaker 3: a two family ender that they just kind of like
25:28
Speaker 3: the win do you? How do you? How do you buy? List?
25:32
Speaker 3: You buy any cash? Can you get like a moan
25:34
Speaker 3: for that? Yeah? That was like a message.
25:36
Speaker 6: But I'm colling up like the hard money numbers that
25:38
Speaker 6: I use, and they're like, we don't know, I'm vacant lost.
25:40
Speaker 3: I was like, wait, okay, I just put up.
25:44
Speaker 6: I just put up like twenty thousand dollars non refundable
25:47
Speaker 6: with you. You can't know me on this, Like now
25:49
Speaker 6: you know what you gotta put up like fifty percent.
25:51
Speaker 3: I was like, shit, I can't. I was like, no,
25:52
Speaker 3: that's too much, is it?
25:53
Speaker 6: And I started making pocals and I start explaining to
25:55
Speaker 6: you know, I had the conversation, I know how much
25:57
Speaker 6: business we've done.
25:58
Speaker 3: We got it.
25:58
Speaker 7: You got some great context if I close myship really
26:04
Speaker 7: good relationships man.
26:05
Speaker 3: And I'm a quiet guy, like you know, another like
26:07
Speaker 3: a big speaker.
26:08
Speaker 6: But you know when it comes to like you know,
26:09
Speaker 6: business and stuff and then get on that phone, it's like,
26:11
Speaker 6: you know, I started, like I start.
26:11
Speaker 3: To transforming man like.
26:13
Speaker 6: Like Michael Jackson gets on stage, you know, quiet do
26:15
Speaker 6: off stage, but on stage.
26:16
Speaker 3: Against the performance showtimes. So long time shot.
26:20
Speaker 6: I convinced them to loan me uh and they were
26:22
Speaker 6: willing to do. You know, the London was waiting to
26:24
Speaker 6: do twenty percent. One thing about these lots that I
26:27
Speaker 6: picked up though, is that because they're located in urban areas,
26:30
Speaker 6: they're located in redevelopment zones, which meant that the city
26:34
Speaker 6: has these kind of sort of like set idea of
26:37
Speaker 6: what you can build on these lots, and if you
26:40
Speaker 6: meet the square footage and what they want, then you
26:43
Speaker 6: don't need to go in front of a zoning board.
26:45
Speaker 3: You can just basically submit payment. Like to just submit
26:48
Speaker 3: plans to the building department is just like taking out
26:51
Speaker 3: a permit on a whole new construction.
26:54
Speaker 6: So that allowed me to leverage these outs. So as
26:56
Speaker 6: soon as I closed, I was able to you know,
26:58
Speaker 6: get with the architect and and send it all the paper.
27:01
Speaker 6: We can already have permits on five which means I
27:04
Speaker 6: already have the financing in place to build these five.
27:08
Speaker 4: What's the permits you talk about that when you spoke,
27:10
Speaker 4: when we first spoke, you had to have the permits,
27:13
Speaker 4: Like it's a process, right when you buy a land,
27:15
Speaker 4: Like it's different than just buying a home.
27:17
Speaker 6: Right, So yeah, yeah, when you yeah, when you buy
27:19
Speaker 6: a land, is it's more complicated because it's like banks
27:21
Speaker 6: don't really want to loan online because what think you have?
27:23
Speaker 3: Just have dirt.
27:23
Speaker 6: Basically, you know, it's like no, no, no property, there's
27:26
Speaker 6: no cashlow, nothing on it.
27:27
Speaker 3: It's just basically breaking lots.
27:28
Speaker 6: And in most places when you buy a lot you
27:31
Speaker 6: have to go in front of the zone board, which
27:32
Speaker 6: can take a year before you can start building up
27:35
Speaker 6: these you know. Unfortunately I was able to kind of
27:37
Speaker 6: like build right away. So now going back to like
27:40
Speaker 6: the numbers, basically like so three seventy five and twenty
27:43
Speaker 6: five for the lot, that puts me like a three fifty.
27:45
Speaker 6: So now the difference between now, let's say a few
27:49
Speaker 6: years back, is like the market where is that now
27:52
Speaker 6: where it was a few years back. If we go
27:53
Speaker 6: back like three years you built a new construction home,
27:55
Speaker 6: you were lucky to get two fifty maybe two seventy
27:57
Speaker 6: five for it.
27:58
Speaker 3: But now thinking about it, now, let's say it.
28:00
Speaker 6: If it costs you two twenty five to bill and
28:02
Speaker 6: you're gonna sell it for two fifty years, you're almost
28:04
Speaker 6: like bricking Ethan basically, or even like, you know, two
28:07
Speaker 6: seventy five, I'm ready to make much money. So now
28:09
Speaker 6: then you can go three seventy five. That gives an
28:11
Speaker 6: extra whole hundred thousand, So that makes a big difference.
28:13
Speaker 6: So that kind of changed over my mind. I said,
28:16
Speaker 6: you know what, why am I going to not do
28:17
Speaker 6: complete renovations when I could just basically build all these homes.
28:21
Speaker 3: So now instead of grabbing the lots, keeping the ones.
28:24
Speaker 6: That I want to send off the other ones and
28:25
Speaker 6: saying no, I forget that, I'm gonna basically get all
28:27
Speaker 6: these lots and I'm gonna build all of them.
28:29
Speaker 7: So can we go back a little bit because you
28:31
Speaker 7: said season had a list, right, and it was twenty
28:33
Speaker 7: two you're twenty two lots. Where does someone even see
28:36
Speaker 7: that list? Like is that at an auction? Where are
28:38
Speaker 7: we getting that? We have to go our kind of
28:39
Speaker 7: clerk or something.
28:40
Speaker 6: No, No, that's just relationships, and it's Basically, when you're known,
28:44
Speaker 6: you know, for making deals, deals will pop up on
28:47
Speaker 6: your email, like you know, I get phone calls all
28:49
Speaker 6: the time like hey listen, I got this deal, and it's.
28:51
Speaker 3: Like, you know it's a good deal of John Binder,
28:52
Speaker 3: it's not a good deal, and I'll let it go.
28:54
Speaker 3: A lot of times people tell me like, hey, you
28:55
Speaker 3: ever let go one of those deals. You don't mind?
28:57
Speaker 3: Then is this? It's like you don't want it because
28:59
Speaker 3: it's like if there's a reason if I let it go,
29:01
Speaker 3: is because it's not a good deal. Basically, if it's.
29:02
Speaker 9: A good deal, I'm somehow someway I'm gonna make ap
29:06
Speaker 9: So all right, So okay, So now you're building homes, right,
29:11
Speaker 9: So when you're building homes from scratch?
29:13
Speaker 3: Right, what kind of homes are you building? How do
29:16
Speaker 3: you build a home? Who do you have? Contract? Like?
29:18
Speaker 3: How does that happen? So? All right?
29:21
Speaker 6: So I mean, first of all, you know, the idea
29:23
Speaker 6: of building something from the ground up was was scary.
29:26
Speaker 3: I was like I've never done it. It's like how
29:28
Speaker 3: am I gonna do this?
29:29
Speaker 6: But you know, going back to that whole renovation schedule
29:32
Speaker 6: when you map it out and you like kind of
29:33
Speaker 6: break everything up into pieces.
29:35
Speaker 3: It's like when you do a.
29:37
Speaker 6: Complete renovation, the first thing that I basically look for,
29:41
Speaker 6: you know, you need to cut the property.
29:42
Speaker 3: Once you cut the property, then you go to the framing.
29:45
Speaker 3: You know, it's like a system.
29:46
Speaker 6: And from framing you go to you want to do
29:48
Speaker 6: the plumbing, Then you do the electric you know, then
29:51
Speaker 6: it comes the installation, it comes to driveable.
29:53
Speaker 3: So it's like a process of step. You just kind
29:54
Speaker 3: of map it out step by step.
29:56
Speaker 6: So now if you put complete renovation one side, you
29:58
Speaker 6: put new construction on the the other side, what's the
30:00
Speaker 6: difference between the two.
30:02
Speaker 3: The only difference is that.
30:03
Speaker 6: On a on a car, on a new construction, you
30:08
Speaker 6: need foundation and you need framing. Once you have foundation
30:11
Speaker 6: and framing, pretty much what you have is like the
30:13
Speaker 6: skeleton of a house. When you buy a house and
30:15
Speaker 6: you do a gu renovation, that's all you left with
30:18
Speaker 6: the skeleton of the house. So now if so I
30:21
Speaker 6: kind of like really did the math. I was like, oh,
30:22
Speaker 6: if I picked up the last of twenty five, how
30:24
Speaker 6: much can it really cost me to do a foundation?
30:26
Speaker 6: And I just you know, I figured, you know, what
30:29
Speaker 6: made you know, made some phone calls just you know,
30:30
Speaker 6: contract is giving me prices, and it's like most people say,
30:33
Speaker 6: like forty thousand for cement up forty thousand you're just
30:37
Speaker 6: need just the found oudation out. So it's like forty
30:39
Speaker 6: thousand and made some other phone cause how much is
30:41
Speaker 6: you know for the frame this thing? It came up
30:42
Speaker 6: to price like forty thousand, like eighty so now eighty
30:45
Speaker 6: plus the twenty five that's one of five. I was like,
30:47
Speaker 6: I'm paying that right now to regulate it for like
30:50
Speaker 6: a complete renovation.
30:51
Speaker 3: So and that's the worst case scenario right now.
30:54
Speaker 6: Being like someone who who knows how to maneuver my
30:57
Speaker 6: way around construction, it is like those the ill probably
31:01
Speaker 6: cut both of them down, like be half.
31:03
Speaker 3: How much of course, like how much more costs to
31:05
Speaker 3: build up everything else?
31:07
Speaker 6: Yeah, you know right now it's gonna be my first rodeo.
31:10
Speaker 6: So it's kind of like it's just a budget that.
31:11
Speaker 3: I have in my head. And my budget right now.
31:13
Speaker 6: Is like one seventy five and you sell that home
31:15
Speaker 6: fow much three seventy five to.
31:17
Speaker 3: Make two hundred thousand. But then you know, minus the
31:21
Speaker 3: twenty five of the line and minus the.
31:22
Speaker 6: Closing comes right, So let's say like one fifty, Like
31:25
Speaker 6: ten of them is like one point five.
31:27
Speaker 3: So what's it? Are you selling these homes or are
31:28
Speaker 3: you sun and all?
31:30
Speaker 6: Like I said, like only segning them because it's like
31:33
Speaker 6: now my vision is to develop buildings, so I already
31:36
Speaker 6: have the last for the buildings. I just don't have
31:38
Speaker 6: the knowledge of building the building and I don't have
31:40
Speaker 6: the liquid funds to get into a project like that
31:44
Speaker 6: because it's like I have this big portfolio and net
31:47
Speaker 6: worth is looking pretty nice. Yeah, but you know, the
31:49
Speaker 6: cash flow is looking pretty tight because it's kind of like,
31:52
Speaker 6: you know, the way I see it, once my all
31:54
Speaker 6: my personal bills are taken care of, is like if
31:57
Speaker 6: I have five thousand dollars in cash low in a month, Yeah,
32:00
Speaker 6: the way I see it is like money has to
32:02
Speaker 6: work for me. I don't work for money, so it's
32:03
Speaker 6: kind of that money is just sitting in the back.
32:05
Speaker 6: I just got basically five thousand dollar and lazy in
32:07
Speaker 6: the back. So I got put into work. So I'll
32:09
Speaker 6: look around and try to find like a property and
32:11
Speaker 6: that I know I can hold up, Like that's five
32:13
Speaker 6: thousand dollars worth of mortgages that I can hold up
32:15
Speaker 6: on the house until I'm ready to start, you know,
32:17
Speaker 6: working on it.
32:18
Speaker 3: You said money works for me. I don't work for money.
32:24
Speaker 3: I was asking going because you told myself at all camera.
32:26
Speaker 3: He was like net worth or what was the soul?
32:29
Speaker 3: You said, not yet, because it's kind of like y'all
32:31
Speaker 3: separate things you got here. You know, your asset minus
32:35
Speaker 3: be your liabilities, which is you know, listen, we heard
32:38
Speaker 3: that networth networth rich, but cash Oh yeah, networth. Yeah,
32:43
Speaker 3: I'm networth rich but cash flow poor. Yeah.
32:45
Speaker 6: Yeah, I'm cool with that for now because it's like
32:47
Speaker 6: I'm trying to build up. I'm trying to, you know,
32:48
Speaker 6: just climb up to a certain level.
32:50
Speaker 7: All right, So your net worth could be thirty million, right,
32:52
Speaker 7: but your cash flow could be three thousand, And that's okay, right,
32:56
Speaker 7: exactly like.
32:57
Speaker 3: I wish I had.
32:59
Speaker 6: But it's basically like, yeah, like you know, it's two
33:03
Speaker 6: different things.
33:03
Speaker 3: Like it's just as raptists.
33:04
Speaker 6: For example, like you know, people who get these large
33:07
Speaker 6: amounts of money, they're.
33:09
Speaker 3: Cash bitch, right, Like they have a lot of cash
33:11
Speaker 3: on hand, but they probably have like no net worth.
33:13
Speaker 6: You probably see people with like the nice cars, the
33:16
Speaker 6: jewelry and everything, and then they riding around within net Worth. Yeah,
33:19
Speaker 6: so then you can see someone like me. Now I'm
33:21
Speaker 6: driving on to Yoa Tacoma. It's like I'm not studying,
33:25
Speaker 6: but it's like the network.
33:25
Speaker 3: Is looking nice. Network is looking more than nice.
33:28
Speaker 7: What's the time frame on building from the ground up?
33:32
Speaker 6: That's then, you know, it's just like you don't know
33:34
Speaker 6: when you're not familiar with something.
33:35
Speaker 3: In my mind, I always sat I was like a
33:37
Speaker 3: year is gonna say to build up a house.
33:39
Speaker 6: Before I started doing the house, I was like six
33:41
Speaker 6: months I'm gonna build, you know, it's going to be
33:43
Speaker 6: the time frame.
33:43
Speaker 3: Now the time frame is looking like three months. So
33:45
Speaker 3: I think like three months I could knock out house. Wow.
33:48
Speaker 6: And I could probably build them like two probably like
33:50
Speaker 6: two to three weeks apart. So's you go on my Instagram.
33:54
Speaker 6: Might now already posted two of them. I saw exactly
33:57
Speaker 6: one already have the foundation, the other one I'm working
33:59
Speaker 6: on the foody, and then probably like another two weeks.
34:03
Speaker 6: One already is gonna have to frame me. The almost
34:05
Speaker 6: gonna have the foundation, and I'm gonna be working on
34:06
Speaker 6: the foot one. And it's like and they're gonna be
34:08
Speaker 6: lined up like that.
34:09
Speaker 7: And you just using the same team he's time or
34:11
Speaker 7: you're like, you know what, I'm gonna capitalize by using
34:13
Speaker 7: different teams that.
34:14
Speaker 3: I trust to work on these properties.
34:16
Speaker 6: It's like I have my core guys that I trust
34:19
Speaker 6: and like, I know they can handle things, and then
34:21
Speaker 6: it's their responsibility to build up on them.
34:24
Speaker 3: So it's kind of like like my project manager.
34:26
Speaker 6: His job is to kind of like I tell him
34:29
Speaker 6: this is what I want to do, and then he
34:31
Speaker 6: goes out. He finds the extra help, even if it means,
34:34
Speaker 6: you know, reaching out to a contract is to kind
34:36
Speaker 6: of help him out.
34:37
Speaker 3: You know.
34:37
Speaker 6: It's crazy, like if I reach out to a contract
34:39
Speaker 6: that let's just say, you might tell me fifteen thousand,
34:40
Speaker 6: I tell him to reach out, he ends up getting
34:42
Speaker 6: it for time, you know, because it's like the relationships
34:46
Speaker 6: and Bason, the concept of like, hey, listen, you gotta
34:48
Speaker 6: give in your prices.
34:49
Speaker 3: I need to make money off of this. But then
34:51
Speaker 3: you know, obviously I know what's going on, and the
34:53
Speaker 3: savings gett passed down on me. Yeah. Wow, Ladies and gentlemen.
34:58
Speaker 4: Once again, free education, right, that's a good thing about
35:03
Speaker 4: the show.
35:04
Speaker 3: Instead, it's all.
35:05
Speaker 4: Free and all of our guests are willing to provide
35:10
Speaker 4: information because you didn't have to, you know, tell people
35:13
Speaker 4: what you're doing, like you could just be selfish.
35:16
Speaker 3: Yeah, like I mean, I'll say this much is like
35:17
Speaker 3: going on.
35:18
Speaker 6: When she's did the first seminar and he tells me,
35:21
Speaker 6: I don't want to do a seminar, I was like, oh,
35:23
Speaker 6: that's cool, Like I remember we spoke about doing like
35:25
Speaker 6: little seminars.
35:26
Speaker 3: But in churches, it's gonna get back to the community.
35:30
Speaker 6: Like and I see every time I see like, you know,
35:32
Speaker 6: a pastor, I've talked to the laylists.
35:33
Speaker 3: You know, I'll do real estate. You want me to
35:35
Speaker 3: go to speak to your congregation that it's like, let
35:36
Speaker 3: me know, I'll come through and i'll speak. You know,
35:38
Speaker 3: nobody's everybody, you know what I mean.
35:43
Speaker 6: But it's kind of like maybe now you know, start
35:45
Speaker 6: getting phone calls and stuff.
35:46
Speaker 3: But you know, but so I thought that's what's gonna
35:48
Speaker 3: be here, Like.
35:49
Speaker 6: Nah, we're gonna do like these seminars, you know, Like
35:51
Speaker 6: I was like, we don't, you know, why.
35:55
Speaker 3: Why do this?
35:56
Speaker 6: But then when I went to the first seminary, I
35:57
Speaker 6: was mind, you I was supposed to speak at the
35:59
Speaker 6: first seven or and it's like When I get that,
36:00
Speaker 6: I was like, oh no, I can't speak, man, It's
36:02
Speaker 6: like I'm not public speakers. I was like, nah, but
36:05
Speaker 6: looking at the crowd, when I seen the crowd, seem
36:07
Speaker 6: like everybody's like from the you know, the first one
36:08
Speaker 6: was the past, and I've seen a lot of people
36:10
Speaker 6: that I know and and it just.
36:12
Speaker 3: Kind of hit me and I'm like, you know what, man,
36:13
Speaker 3: that was me ten fifteen years ago.
36:15
Speaker 6: I knew nothing and I needed it, like somebody to
36:18
Speaker 6: kind of just not help me out, like giving me
36:21
Speaker 6: a hand, but just kind of like guiding me like
36:22
Speaker 6: some of this is you know, this is the direction,
36:23
Speaker 6: and it's kind of like and we came from nothing.
36:25
Speaker 6: So it's like I feel like when they see us,
36:28
Speaker 6: you know, they're not seeing these guys in these fantacyes too,
36:29
Speaker 6: they seeing themselves. So they're saying like, you know what
36:31
Speaker 6: if you know, if like if they did it, they
36:33
Speaker 6: put it, they way to put into work, and you know.
36:35
Speaker 3: Look with there are now le meanes, I can do it.
36:36
Speaker 6: So I feel like I felt I felt bad like
36:39
Speaker 6: that I didn't speak.
36:40
Speaker 3: I felt bad like yeah, you know what, I let my.
36:42
Speaker 6: Fear, you know, stop me from going up there like,
36:44
Speaker 6: and these people it's kind of like they need like
36:47
Speaker 6: that motivation, you.
36:47
Speaker 3: Know what I'm saying. They need that information. So that
36:49
Speaker 3: motivated me to kind.
36:50
Speaker 6: Of like, you know, you know, to push through and
36:54
Speaker 6: then I should speak on stage. And I feel like
36:57
Speaker 6: it is like a responsibility for you know, for people
36:58
Speaker 6: like us that we are at.
37:00
Speaker 3: A at a certain you know, certain.
37:02
Speaker 6: Level where we have like this knowledge of this information
37:05
Speaker 6: and it's kind of like we could keep it. But
37:07
Speaker 6: it's like, you know, it's Tiger Woods right now, showed
37:09
Speaker 6: you how to play golf, Michael Jordan showed you how
37:11
Speaker 6: to play basketball.
37:12
Speaker 3: That's not gonna then.
37:13
Speaker 6: They're like exactly, I mean, they're still gonna be who
37:15
Speaker 6: they are. So I feel like, if you know, if
37:17
Speaker 6: I go out here and I tell you everything that
37:18
Speaker 6: I do, how I do it, you still want to
37:20
Speaker 6: regardless regardless. I mean, I'll tell you this right now, man,
37:24
Speaker 6: like I actuldly like start today and just with these
37:26
Speaker 6: last that I have, with these uh, these plans that
37:28
Speaker 6: have with the buildings, I'm.
37:29
Speaker 3: Gonna stay busy for the next five years.
37:31
Speaker 6: And all my crew, everybody that works for me, they're
37:33
Speaker 6: gonna stay busy for the next five years, so we're
37:35
Speaker 6: all gonna eat.
37:36
Speaker 3: So it's kind of like, you know, why why I
37:38
Speaker 3: try to keep that information. It's kind of like, you know,
37:40
Speaker 3: I don't need to bring you down, so I could elevate,
37:42
Speaker 3: you know what I mean.
37:43
Speaker 6: It's like I could elevate myself and it bring you up,
37:45
Speaker 6: and it's like and I'll still be up to.
37:46
Speaker 3: Everybody needs Yeah, everybody needs everybody. Let make sure.
37:52
Speaker 6: My graduates from my school being forced bad drop drop,
37:58
Speaker 6: Mike drop bad drop.
38:00
Speaker 3: Hi, you.
38:11
Speaker 1: Just realized your business needed to hire someone yesterday? How
38:15
Speaker 1: can you find amazing candidates fast? Easy? Just use Indeed.
38:20
Speaker 1: Stop struggling to get your job posts seen on other
38:23
Speaker 1: job sites. With Indeed sponsored jobs, your post jumps to
38:27
Speaker 1: the top of the page for your relevant candidates, so
38:30
Speaker 1: you can reach the people you want faster. According to
38:33
Speaker 1: Indeed data, sponsored jobs posted directly on Indeed have forty
38:37
Speaker 1: five percent more applications than non sponsored jobs. Don't wait
38:41
Speaker 1: any longer, speed up your hiring right now with Indeed,
38:44
Speaker 1: and listeners of this show will get a seventy five
38:47
Speaker 1: dollars sponsored job credit to get your jobs more visibility
38:50
Speaker 1: at indeed dot com. Slash pod Katz thirteen. Just go
38:56
Speaker 1: to indeed dot com, slash pod, Katz thirty right now
39:01
Speaker 1: and support our show by saying you heard about Indeed
39:04
Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is
39:08
Speaker 1: all you need