Latest / Go Big with Gib Podcast / Real Estate Resilience: Melvin Landry's Tale of Revival and Diversification

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Real Estate Resilience: Melvin Landry's Tale of Revival and Diversification · Go Big with Gib Podcast

• 0:00
  Speaker 1: Welcome to the Go Big With Gibb podcast, a place for professionals, business owners and entrepreneurs to talk about their big wins.
• 0:07
  Speaker 1: This episode of Go Big With Gibb is brought to you by Irons Equity.
• 0:16
  Speaker 1: At Irons Equity, we help investors like you create long-term generational wealth and save money on taxes through recession-resistant real estate investments that create passive income for you and your family.
• 0:29
  Speaker 1: If you want to secure your financial future, contact us today at investwithgibcom to schedule a 30-minute introductory meeting with me.
• 0:37
  Speaker 1: Gib Irons Again, that's investwithgibcom.
• 0:40
  Speaker 1: Let's get back to the show.
• 0:42
  Speaker 1: All right, everybody.
• 0:43
  Speaker 1: Welcome to this episode of Go Big with Gib.
• 0:46
  Speaker 1: Today I've got one of my very good friends, melvin Landry, with me.
• 0:50
  Speaker 1: Melvin is a multifamily syndicator.
• 0:53
  Speaker 1: He and I have known each other for a long time now.
• 0:56
  Speaker 1: A great friend, welcome to the show.
• 0:58
  Speaker 1: How are you today?
• 0:58
  Speaker 2: Melvin, I'm blessed man.
• 0:59
  Speaker 2: Thanks for the opportunity.
• 1:00
  Speaker 2: Happy to be here.
• 1:00
  Speaker 1: Yeah, yeah, absolutely.
• 1:02
  Speaker 1: Well, let's dive right in.
• 1:03
  Speaker 1: If you would go ahead and introduce yourself to our audience, tell us a little bit about yourself.
• 1:08
  Speaker 1: Melvin Landry, I reside now in Pittsburgh, pennsylvania.
• 1:11
  Speaker 2: Grew up in South Louisiana and my background is procurement supply chain, started the real estate journey in 2005 and started off single family.
• 1:21
  Speaker 2: I started off buying in the market where I live now, even though when I started buying real estate I was living in the heartland of America, which is Omaha.
• 1:27
  Speaker 2: The journey for me started buying single families in three different states.
• 1:32
  Speaker 2: I was in PA, I was in Indiana, I was in Arizona.
• 1:36
  Speaker 2: I didn't see it as a means to an end.
• 1:38
  Speaker 2: I saw it as a complimentary means to what I was doing.
• 1:40
  Speaker 2: I just started to purchase.
• 1:42
  Speaker 2: I purchased in 2005, 2006, 2007.
• 1:45
  Speaker 2: I ended up getting burned, like many right 08, 09.
• 1:49
  Speaker 2: So properties that I bought in Indiana and Arizona ended up short selling as a result of the crisis.
• 1:52
  Speaker 2: But PA stood strong for me, believe it or not and just continuously managed to buy and target an REO short sales, got a mentor which is key in this business right, got a mentor and targeted direct mail campaigns and was really, really accelerating in terms of buying off-market deals, distressed properties.
• 2:08
  Speaker 2: I've always kind of targeted distressed properties and look man, take rags and turn them into riches and get renters in and cash flow and keeping renters happy.
• 2:16
  Speaker 2: That's what I was doing over the years, so kind of was progressing along and fast forward 2012,.
• 2:22
  Speaker 2: I got 60 something rentals, gib and I'm working and I'm teaching and I'm like we say we get diversified right, so uh yeah, man.
• 2:29
  Speaker 2: So, you know, met my wife and we decided to, uh, take an entrepreneurial journey.
• 2:33
  Speaker 2: We moved around.
• 2:35
  Speaker 2: So you know, I started in omaha.
• 2:36
  Speaker 2: It took me from omaha to vegas, vegas to dallas, so and then I'm here 60 something, rentals, cash flowing pretty well, things are going good.
• 2:42
  Speaker 2: So we opened up up a business together and our business didn't go quite so well and we ended up closing in 2019.
• 2:48
  Speaker 2: So with that, we exited our business and I ended up selling nearly 80% of the portfolio that I had.
• 2:54
  Speaker 2: As you can imagine, right Legal you know you're a lawyer right, dealing with legal fees and things of that nature so ended up settling.
• 3:01
  Speaker 2: We were able to move forward from there.
• 3:03
  Speaker 2: I then jumped into multifamily kind of find multifamily.
• 3:05
  Speaker 2: After that Went to a seminar.
• 3:06
  Speaker 2: The light bulb went off for me.
• 3:07
  Speaker 2: I got into syndications.
• 3:09
  Speaker 2: It hasn't been ramping up ever since.
• 3:10
  Speaker 2: Man, we're active and passive investors.
• 3:13
  Speaker 2: We're continually passively investing.
• 3:16
  Speaker 1: Yeah, that's beautiful.
• 3:17
  Speaker 1: Let's talk through that a little bit.
• 3:19
  Speaker 1: At one point you had gotten up to about 60 rentals and you had the food service business and you guys had some challenges right and some difficulties with the food service business and you ended up having to sell off a portion of your portfolio.
• 3:34
  Speaker 1: Is that, did I hear you, nearly 90 of the 60 rentals that you had?
• 3:39
  Speaker 1: How many properties did you were you able to hold on to through that experience?
• 3:43
  Speaker 2: Only a few like about.
• 3:44
  Speaker 2: I mean maybe like 10.
• 3:48
  Speaker 2: And even post then right, you know you think about when you get into these type of engagements.
• 3:52
  Speaker 2: Right, you got SBA that you got to deal with.
• 3:53
  Speaker 2: You have to, you can't just walk away from that.
• 3:56
  Speaker 2: So, even post exit just within the last 24 months, just got done paying.
• 4:01
  Speaker 2: You know you got to pay the piper, so yeah, yeah, you know you gotta pay the piper.
• 4:11
  Speaker 1: So, yeah, yeah, no, so you were able to build things back.
• 4:12
  Speaker 1: Talk to me about how you're building things back and how you've been able to experience new growth within your portfolio since that time.
• 4:15
  Speaker 2: I will say being able to ramp up and get into, you know, a mentorship and being able to kind of take action.
• 4:21
  Speaker 2: The foundation was there and for me, you know, it was about understanding the methodology of being able to go and kind of reenact what I did on the single family front, because I had success and I had a peer set group as well, like yourself.
• 4:34
  Speaker 2: Right, we met and other folks were doing the do, they were progressing in, they were doing well, growing within the business.
• 4:39
  Speaker 2: So, and that sparked an overall opportunity for me.
• 4:43
  Speaker 1: So, and that sparked an overall opportunity for me, I saw this opportunity kind of get in to kind of help grow and kind of reenact what I did before, but on a larger front, being able to scale Sure.
• 4:52
  Speaker 1: And it's a totally different investment analysis, I think.
• 4:53
  Speaker 1: When you go from single family to multifamily, I mean there's differences right in every different type of real estate.
• 5:00
  Speaker 1: And in your multifamily investments, I know you invest passively as a limited partner and then you have other deals that you're active in as a general partner and so for some of the listeners that may not understand, when you invest as a limited partner you have limited liability so you could lose the investment, but you don't sign on the loan, you're not obligated on the debt, so in that way it's advantageous.
• 5:29
  Speaker 1: Obviously you have the capability and the knowledge and the experience to run all of your own deals, yet you still invest passively.
• 5:39
  Speaker 1: And could you tell our listeners a little bit about why you do that?
• 5:43
  Speaker 1: I think I know the answer, but I want folks to hear that from you because it's interesting.
• 5:49
  Speaker 1: I hear folks saying a lot of the times like I want to do my own deals, you know, and they don't realize what comes along with that.
• 5:56
  Speaker 2: Right.
• 5:56
  Speaker 2: So well, I mean from a passive investment standpoint, I think, look, I now know, and fully versed in terms of the benefits of passive investment right, how you can get the tax benefits right.
• 6:07
  Speaker 2: My wife retired from her job in order for her to become the real estate professional.
• 6:11
  Speaker 2: At first it was me and I had like five jobs right.
• 6:14
  Speaker 2: Irs may not view me as linear, so we decided the wife takes on the real estate professional status.
• 6:19
  Speaker 2: I can still work, maintain the W-2, right, still got to put groceries in on the table and also at the same time we can still diversify and invest to kind of help improve our tax situation.
• 6:28
  Speaker 2: We saw that as an avenue that was a must have for us, right, given you know we're accredited investors.
• 6:34
  Speaker 2: Right and the potential tax liability if we didn't invest.
• 6:37
  Speaker 2: So that's the trade-off that many folks really need to kind of get their aha moment on in terms of if I don't invest I'm going to end up having to shell out checks every April.
• 6:46
  Speaker 2: I don't want to do that.
• 6:47
  Speaker 2: In addition, we know our markets right.
• 6:53
  Speaker 2: So we do section eight.
• 6:53
  Speaker 2: We do program rentals right.
• 6:54
  Speaker 2: We do all affordable housing type programs.
• 6:55
  Speaker 2: Those have been key pillars in our market would work for us right In terms of kind of maintaining a good base of tenants and helping out for the overall community and helping folks who are in need.
• 7:04
  Speaker 2: So that's key for us also as well.
• 7:06
  Speaker 1: Also with your passive investing.
• 7:08
  Speaker 1: You know it gives you some of those benefits like depreciation that you mentioned.
• 7:13
  Speaker 1: You can get the benefit of depreciation whether you're passive or active, right, but with the passive investments, you just kind of can, you know, vet the operator and set your money and forget it.
• 7:24
  Speaker 1: It's kind of set it and forget it.
• 7:26
  Speaker 1: You can put your investment in and then get your mailbox money and so you don't have to spend additional time working the property and doing the improvements and things like that.
• 7:38
  Speaker 1: Talk to me a little bit about your market.
• 7:41
  Speaker 1: I have been following you on social media for a long time.
• 7:44
  Speaker 1: Your market I have been following you on social media for a long time.
• 7:48
  Speaker 1: You know I see you riding around in the car with your children and showing them things about your real estate investing journey, which I just love.
• 7:54
  Speaker 1: I think it's so important you know to do that.
• 7:56
  Speaker 1: What is it, though?
• 7:57
  Speaker 1: We talked a little bit before we went on air and you said look, I invest in my own backyard, which is Pittsburgh, pennsylvania.
• 8:04
  Speaker 1: Some people may not find that market sexy or attractive.
• 8:08
  Speaker 1: Tell me what it is that you love about your market, because you've really got that market dialed in.
• 8:14
  Speaker 2: Well, look, I've been investing there since 05.
• 8:16
  Speaker 2: So I feel I know my market, I've invested in you know the good areas, the rough areas and I've done well.
• 8:22
  Speaker 2: I think, at the end of the day, right, and it comes back full circle, right?
• 8:26
  Speaker 2: So I've been investing there since 05.
• 8:27
  Speaker 2: And all of a sudden, I moved back here in 2021.
• 8:29
  Speaker 2: You know, Life comes full circle.
• 8:38
  Speaker 1: Opportunities come full circle, so it's kind of key and critical for me from that viewpoint.
• 8:40
  Speaker 1: Let me ask you this you said you've invested in some of the nicer parts of town and some of the rougher parts of town.
• 8:43
  Speaker 1: Have you been able to make money in the rougher parts of town?
• 8:47
  Speaker 1: I'm just out of curiosity how have your investments gone when you have taken that risk, which a lot of investors would shy away from?
• 8:56
  Speaker 2: I would say the rougher part of the talent is to give a huge, huge, huge cash flow variance.
• 9:01
  Speaker 2: You can buy them for low, affordable housing, get market rents and with that there's a nice huge spread from an opportunity cash flow variance.
• 9:08
  Speaker 2: At that point the better parts of talent they're just as competitive as other markets but you're going to pay a higher price and that's okay too.
• 9:19
  Speaker 1: So it's a good, uh, good variance, but it's a good balance at the end of the day also as well.
• 9:21
  Speaker 1: So it sounds like you're not afraid to go into one of the parts of town that may you know others may shy away from, and you've been able to find a way to leverage that to get to buy properties at a lower price and have a better cash flow.
• 9:34
  Speaker 1: Absolutely, that's great.
• 9:36
  Speaker 1: So talk to me a little bit about.
• 9:39
  Speaker 1: I know you told me you had a background in corporate procurement and supply chain management.
• 9:46
  Speaker 1: Is that your like you currently are working a W-2 job.
• 9:50
  Speaker 1: Is that correct?
• 9:51
  Speaker 1: I?
• 9:51
  Speaker 1: am yes, and what is the nature of your current employment?
• 9:54
  Speaker 2: So I work in procurement indirect procurement, so sourcing contracts and negotiating with vendors payment terms, helping folks save against budgets, so kind of like an asset manager role, believe it or not, helping stakeholders save on money and things of that nature.
• 10:09
  Speaker 1: So yeah, and how long have you been doing?
• 10:10
  Speaker 1: that 20 plus years 20 plus years, and so you're able to work full time and do all these different real estate activities, which I always think is.
• 10:20
  Speaker 1: To me, that's super cool.
• 10:22
  Speaker 1: I think real estate offers people an opportunity to do something different, but you don't have to abandon your W-2 job, absolutely.
• 10:30
  Speaker 1: You know, I hear a lot of the real estate syndicators right now talking about how you know we're going to help you quit your job, and I've always I've never wanted to quit my day job.
• 10:42
  Speaker 1: I've always enjoyed what I do, you know, being an attorney and practicing law, and it sounds like you're the same with your.
• 10:48
  Speaker 1: You've got your career that's going well, and the more successful you are in it, the more money you're able to stash away into your real estate activities.
• 10:57
  Speaker 1: Is that a fair assessment?
• 10:59
  Speaker 2: I would say so and I would say my professional career complements what I do in real estate.
• 11:04
  Speaker 2: Eventually there's going to be a means to an end, hopefully right At the end of the day.
• 11:12
  Speaker 2: But look man, I like what I do in my corporate career.
• 11:14
  Speaker 2: I think it helps fuel what I do in real estate.
• 11:15
  Speaker 2: Look man, I like what I do in my corporate career.
• 11:16
  Speaker 2: I think it helps fuel what I do in real estate.
• 11:17
  Speaker 2: Look man, it's good to see the momentum.
• 11:19
  Speaker 2: When I first started doing this real estate, my foot was off the gas.
• 11:23
  Speaker 2: Now my foot's on the gas and now I have a newfound vision.
• 11:26
  Speaker 2: My mindset is different than what it was 20 years ago and I'm fired up about that.
• 11:29
  Speaker 1: Yeah, If you're okay with it.
• 11:31
  Speaker 1: I'd love to hear a little bit about how you share knowledge with your children and how you share your investing philosophy and perspective with them.
• 11:41
  Speaker 1: I've seen you taking them on car rides to go see properties that you own.
• 11:46
  Speaker 1: What are your thoughts on that?
• 11:48
  Speaker 1: Is it something that's really important to you to share that with?
• 11:52
  Speaker 2: them Absolutely.
• 11:52
  Speaker 2: So we do flashcards on financial concepts.
• 11:55
  Speaker 2: We're big on three subjects money, finance and credit.
• 11:58
  Speaker 2: In addition to the real estate ordeal, I bring him out on tours.
• 12:03
  Speaker 2: And again, you mentioned children.
• 12:04
  Speaker 2: I have one son.
• 12:05
  Speaker 2: He's nine years old, and we bring him out on tours.
• 12:07
  Speaker 2: We talk to him about cash flow and just kind of helping sow the seeds of the educational foundation on money, finance and credit.
• 12:15
  Speaker 1: That's key.
• 12:16
  Speaker 1: Yeah is one of the things that I've always found lacking in the educational system here in the United States is that they don't teach that kind of stuff, and so it just is very inspiring to me to see what you're doing with your son.
• 12:29
  Speaker 1: You know, teaching him those kinds of things.
• 12:31
  Speaker 1: Know teaching him those kinds of things.
• 12:37
  Speaker 1: Similarly, I like to take my kids to our properties that are here in Greenville, north Carolina, and let them see, kind of like you know, this is what the property looks like when we acquired it.
• 12:43
  Speaker 1: You know we just purchased the property.
• 12:44
  Speaker 1: This is what it looks like.
• 12:45
  Speaker 1: What renovations do you think we need to do?
• 12:48
  Speaker 1: And then I let them come see the property when the renovations are done, which you know to them is like wow, look at what we did to this place.
• 12:55
  Speaker 1: This place was like in not very good condition, and now we've brought it up to you know the kind of condition that we could actually live here, and I think that is good for them.
• 13:05
  Speaker 1: You know kids absorb a lot of things through observing their parents, and so I think that's very important.
• 13:12
  Speaker 2: Absolutely, absolutely, man.
• 13:13
  Speaker 2: That's half the battle.
• 13:15
  Speaker 1: Yes, so talk to me about Moreland Capital.
• 13:18
  Speaker 1: So how long have you been in business as Moreland?
• 13:22
  Speaker 1: I know you've been in the real estate space since 2005.
• 13:26
  Speaker 1: So you know we're filming in 2024.
• 13:29
  Speaker 1: You've been in this space, you know 19, almost 20 years has Moreland Capital been.
• 13:34
  Speaker 1: How long has it been?
• 13:35
  Speaker 2: in existence but three years.
• 13:36
  Speaker 2: So really, on the newfound ordeal of the multifamily space.
• 13:39
  Speaker 2: And look, more land equity capital comes from.
• 13:41
  Speaker 2: My wife made names morelli, my last name is landry.
• 13:44
  Speaker 2: More land.
• 13:45
  Speaker 2: We put that together, we get the dream team there and we press forward.
• 13:48
  Speaker 2: So that's how it kind of came to fruition.
• 13:50
  Speaker 2: So, um, sure man so that's, uh, that's that's how that entity kind of came forward and has been growing ever since man.
• 13:57
  Speaker 1: Yeah, so what kind of deals do you like to raise money for?
• 14:02
  Speaker 1: I know you've been involved actively in some deals we just talked about.
• 14:06
  Speaker 1: What deal metrics are you really looking for in terms of acquisition In?
• 14:11
  Speaker 2: terms of, from a larger syndication team standpoint, ideally 100 to 200 units class BC.
• 14:17
  Speaker 2: You know, in respect to core markets, we're getting where employment is doing well, right and again buying it at the right cap rate.
• 14:22
  Speaker 2: You know, I shift forward to my own backyard, my own market.
• 14:26
  Speaker 2: Look, we try to get smaller acquisitions and we try to aim to reach for double digit caps.
• 14:32
  Speaker 2: Wow, so we're aiming for double digit caps and it's a cashflow play, uh, with a longer term hold holding the norm.
• 14:39
  Speaker 1: I know what those those plays locally are a cashflow.
• 14:43
  Speaker 1: They're more focused on cashflow.
• 14:45
  Speaker 1: What is the appreciation look on like on properties like that?
• 14:48
  Speaker 1: Is there still an element of appreciation or is it more um of appreciation or is it more um?
• 14:58
  Speaker 1: You know it's a cash flow only type of a deal.
• 14:59
  Speaker 2: You enjoy the cash flow and and to talk to me about the appreciation side of things, well, depreciate on the depreciation side of it, right, we do cost seg as well, whether it's large or small, to take advantage of those, uh, of those benefits and ideally, right, we want uh kind as as increasing of a net passive loss as we can.
• 15:15
  Speaker 2: They kind of offset the W-2s that I'm, that I'm working right from that standpoint so we're able to kind of get the best of both worlds right, include enjoy the cash flow but as well as the kind of you know, investors and investing in a vehicle like real estate which helps the overall financial future of growth for cash flow and helps mitigate risk from a tax standpoint as well.
• 15:38
  Speaker 2: So for me again, once we got alignment on that and that light bulb went off, it was to the races for us on that in terms of we need to be doing a lot of this and fast.
• 15:48
  Speaker 1: Sure, sure.
• 15:49
  Speaker 1: Yeah, I think a lot of Americans, a lot of people that I talk to in this country, seem to think that you know, tax just kind of is what it is right.
• 15:57
  Speaker 1: You just pay how you just owe however much tax you owe, and it is what it is and there's no way around it.
• 16:04
  Speaker 1: And I think you know some of the personal growth that we've experienced through the masterminds that we attend and, just you know, networking with people that are like-minded people.
• 16:15
  Speaker 1: I think we've come to the realization that actually there's a lot of strategy behind taxes.
• 16:21
  Speaker 1: And do you look at your tax situation periodically throughout the year, or is it something that you just look at after the calendar year has passed and you're looking at it retroactively?
• 16:33
  Speaker 2: Monthly, monthly, doing true-ups, monthly For the amount of money I spend with my tax advisor.
• 16:37
  Speaker 2: We do it monthly, we do true-ups and he's on me in terms of the kind of insurer expenses, a cross-check.
• 16:42
  Speaker 2: So yeah, we're monthly, me and my wife we're doing true-ups in terms of our financial situation, what expenses are kind of going in.
• 16:50
  Speaker 2: And, again, we're asset managers, even on our own portfolio locally and our account keeps us honest.
• 16:55
  Speaker 1: So yeah, yeah, I think that's so important.
• 16:57
  Speaker 1: You know, I know a lot of people.
• 16:59
  Speaker 1: You know they go through the entire calendar year, right, and then you know at the beginning, in Q1 of the following year, they take a look at their tax situation and they they're like you know, let's assess our tax situation and see where things shook out.
• 17:14
  Speaker 1: That is a totally reactive approach where you know you're looking at things after the fact, but if you can look at them on a monthly basis and really strategize, that really is where you can save a ton of money on taxes.
• 17:27
  Speaker 1: I expect that you have probably saved your family, you know, tens of thousands of dollars in taxes through this, through the use of depreciation Is that absolutely correct.
• 17:42
  Speaker 1: Yes, yes, yes, yes, yes.
• 17:43
  Speaker 1: Utilize the depreciation.
• 17:45
  Speaker 1: Because your wife is a qualified real estate professional, you're able to utilize the depreciation that you get, even from these passive investments, that is correct.
• 17:55
  Speaker 2: So you know the way we thought about it is.
• 17:56
  Speaker 2: Okay, look, my wife left a really good paying job right For the amount of headaches and stress that she was dealing with.
• 18:01
  Speaker 2: Does generating the tax savings from her being a real estate professional outweigh the notion of her being in the W-2, which she liked but she wasn't too much of a fan of?
• 18:11
  Speaker 2: It was anyway, and we kind of felt like the notion of having her real estate professional really helping us to grow our portfolio front and center was well worth it versus having a six-figure job.
• 18:20
  Speaker 1: Yeah, I would tend to agree with that analysis, and we've done a similar thing at my house.
• 18:26
  Speaker 1: So talk to me a little bit about the market right now.
• 18:30
  Speaker 1: Where are you seeing opportunity right now and as we sit here in 2024, where is the opportunity that you're looking at right now and really focused on?
• 18:40
  Speaker 2: I would say in terms of opportunity in our market, right Property tends to come a little cheaper, particularly in my market, or even cheaper in opportunity zones, and that's okay because we focus on the cashflow play.
• 18:52
  Speaker 2: I would say that we have a robust kind of reach in terms of direct mail campaign as well, looking for off-market deals, as is other folks in this respective space.
• 19:04
  Speaker 2: Our pencils are down, while many other folks say the pencils are up and we are acquiring ferociously.
• 19:10
  Speaker 2: Even with the rates where they are, you have to be buying right.
• 19:13
  Speaker 2: I mean like the old saying goes right, If you can make money in a bad economy, you're going to do very well when a good economy comes around.
• 19:20
  Speaker 2: So right now I mean look, rates are high and it's doom and gloom At least the media perceives it to be, but you should still be out.
• 19:27
  Speaker 2: And look, I mean, we don't swing for the fences to get a home run every time.
• 19:31
  Speaker 2: That's not our philosophy.
• 19:33
  Speaker 2: We'll take bunts, we'll take base hits, the cashflow.
• 19:35
  Speaker 2: We're trying to buy it, regardless of size, and that's been our philosophy.
• 19:40
  Speaker 2: Again, we love our market, we invest, we're in a asset management mastermind as well, whereas we're really really really managing these assets to a T to keep our expense ratio down, while, at the same time, given our tenants who may be in a C neighborhood, they deserve an A plus experience.
• 19:57
  Speaker 2: That's what we pride ourselves on.
• 19:59
  Speaker 2: That's what has been very well.
• 20:01
  Speaker 1: And look, we're still in acquisition mode and maybe you're seeing if I'm hearing you correctly, you're seeing some prices are lower than they have been historically Like interest rates are high, real estate is on a discount.
• 20:19
  Speaker 1: You're buying properties for even cheaper than you would in a time where interest rates once interest rates start to drop, you know there could be some inversion there and we're getting creative too.
• 20:30
  Speaker 2: I mean owner financing, even on our high profile flips, where you know it's okay to be the bank, right?
• 20:37
  Speaker 2: So you know, at first it was like let me just kind of flip and flip it and get the variance and keep running.
• 20:43
  Speaker 2: I figure, if I can hold owner finance, I can get 2x, 3x my money while even giving them a shorter period term.
• 20:50
  Speaker 1: right, you'd be the bank they're getting a whole heck of a lot of money from a total cost of ownership of your money over 30 years.
• 21:02
  Speaker 2: So that was like well, man, I could be the bank too.
• 21:04
  Speaker 2: You know, and many folks out there you know, it's hard qualifying, it's tough sledding right now in the real estate market, particularly for folks, first-time homebuyers.
• 21:10
  Speaker 2: We're trying to get creativity that makes it attractive for us as well as attractive for them.
• 21:15
  Speaker 2: At the end of the day, it's a win-win situation for all.
• 21:18
  Speaker 1: Do you have a certain amount of your income right now that is passive.
• 21:22
  Speaker 1: And another thought would be are you striving for income replacement, or is that even a consideration?
• 21:29
  Speaker 2: Great question, gibbs.
• 21:30
  Speaker 2: I'll say probably about 10 to 12% passive on the income front.
• 21:34
  Speaker 2: I would say you know I have a target date potentially to exit.
• 21:38
  Speaker 2: You know, and we also me and my wife we have a financial freedom number that we're trying to hit.
• 21:42
  Speaker 2: So those goals are identified and we're lockstep on it.
• 21:46
  Speaker 2: I like my job, I'm flexible, I'm remote and I get paid well to do what I do.
• 21:51
  Speaker 2: But there may come a time.
• 21:57
  Speaker 2: I mean, if I'm in ferociously buy mode right now we're buying, buying, buying.
• 21:59
  Speaker 2: I know the amount of doors that it would take, whereas I can be like if I want to just be done with work, I can do that.
• 22:02
  Speaker 2: Believe it or not, dude, it is closer to what I really think.
• 22:05
  Speaker 2: So the reality of that is really really real.
• 22:09
  Speaker 2: But it's all relative, man.
• 22:12
  Speaker 2: I see what my profession complements what I do on the real estate front, trying to get the right opportunities from a cash flow standpoint, network growth standpoint over time.
• 22:17
  Speaker 2: So I love what I do.
• 22:19
  Speaker 2: So, yeah, it'd be tough, but I mean that's an option, sure.
• 22:23
  Speaker 1: Talk to me about the goal setting thing.
• 22:25
  Speaker 1: I'd like to go back to that a little bit.
• 22:26
  Speaker 1: So it sounds like you and your wife, jacqueline, have some very concrete goals, some very specific goals that you have put in place.
• 22:37
  Speaker 1: Do you have any kind of procedure for you know?
• 22:40
  Speaker 1: How did those goals come to be?
• 22:42
  Speaker 1: What was the process that you arrived at that?
• 22:44
  Speaker 1: What was the process that you arrived at that?
• 22:45
  Speaker 1: I think it could benefit a lot of the listeners to think about.
• 22:48
  Speaker 1: What are our goals as a family?
• 22:50
  Speaker 1: You know as a married couple, you know as partners.
• 22:55
  Speaker 2: How did that come about?
• 22:55
  Speaker 2: Well, you know, I think it first started with the financial freedom number was part of another mastermind that we're part of, and we were kind of toying back in terms of what that financial freedom number is for us and what would make us happy and comfortable.
• 23:09
  Speaker 2: You know, my wife has a goal for me in terms of when she really wants me to kind of stop working for good.
• 23:12
  Speaker 2: So that's one that you know, that's one that you know I can sign up for.
• 23:17
  Speaker 2: You know, we're striving to get towards that and real estate is going to be a vehicle to help us get there.
• 23:23
  Speaker 2: Now I would say, from a goal setting standpoint look, man, we have the big calendar right, the big calendar on the wall, and we earmark and we put those family events and we really now strategize in terms of how we allocate our time, the family time, the date nights, etc.
• 23:39
  Speaker 2: So, being intentional and deliberate in your calendar planning and being intentional and deliberate in your goal setting whether it's by yourself or with your wife I think that's key and it has been very, very, very instrumental for us as we're progressing toward those goals.
• 23:52
  Speaker 1: Yeah, I know what calendar you're talking about.
• 23:54
  Speaker 1: You're talking about Jesse Itzler's giant calendar.
• 23:57
  Speaker 2: That is correct.
• 23:58
  Speaker 1: The really, really big one.
• 24:00
  Speaker 1: It's like five foot wide and five foot tall.
• 24:03
  Speaker 1: I also have that calendar and you know we can drop a link in the notes here, but I know Jesse has that calendar available for sale and I have purchased it for myself and purchased it for friends as a gift, because it's so cool, because you've got the entire calendar year of 2024, whatever year it is and you can map out your entire year.
• 24:28
  Speaker 1: Is that something that you and and your wife have been doing?
• 24:32
  Speaker 1: Did you do that for 2020?
• 24:34
  Speaker 2: So for the past two years we've been have.
• 24:38
  Speaker 2: The calendar is up right in front of my wife's desk.
• 24:40
  Speaker 2: We have everything earmarked, keeps us accountable, and you know it.
• 24:44
  Speaker 2: It helps actually minimize riffraff in terms of who's supposed to be doing what.
• 24:49
  Speaker 2: And oh, I thought we were supposed to be going here.
• 24:51
  Speaker 2: My wife goes to a conference.
• 24:52
  Speaker 2: I know it's on the calendar.
• 24:53
  Speaker 2: I look at that thing daily when I'm passing downstairs.
• 24:57
  Speaker 2: So yeah, very helpful.
• 24:58
  Speaker 1: Yeah, I love being able to see the entire calendar year on one giant calendar.
• 25:03
  Speaker 1: Now talk to me a little bit about education, and I know that you and Jacqueline invest heavily in your education and in your personal growth and personal development.
• 25:17
  Speaker 1: I know because we've been involved in multiple different masterminds together.
• 25:23
  Speaker 1: I've seen you at a bunch of different conferences, seen you at a bunch of different conferences and I think we've met up at all over, you know, all over the country.
• 25:33
  Speaker 1: I think we've we've met up in in, uh, I know, dallas and Arizona, uh, you know, phoenix, arizona and a couple other places.
• 25:36
  Speaker 2: I'm sure, uh, maybe, maybe I don't know if you went on the Mexico trip but anyway, I was, I was, I was, uh, I was in Louisiana, so uh, talking with some of my prospective investors, so yeah, I remember Jacqueline being there, now that you mentioned it.
• 25:48
  Speaker 1: So what are your thoughts on continuing education at this stage of your life and focusing on personal growth and development?
• 25:56
  Speaker 1: It's an absolute must.
• 25:57
  Speaker 2: I mean I don't proclaim to know it all.
• 25:59
  Speaker 2: I compare the education facet to my nine to five facet.
• 26:03
  Speaker 2: Right, I'm in the procurement supply chain.
• 26:05
  Speaker 2: It's all about continuous improvement.
• 26:07
  Speaker 2: You always can continually grow, you can always learn something from someone.
• 26:10
  Speaker 2: So we pride ourselves on kind of trying to get in the right rooms, trying to diversify the rooms and continuously educating ourselves and kind of growing from that standpoint.
• 26:22
  Speaker 2: So the best investment is in yourself, to start.
• 26:25
  Speaker 2: I would tell that to anyone.
• 26:27
  Speaker 2: I mean, if you don't invest in yourself, you may be stuck in neutral for quite a long time.
• 26:31
  Speaker 2: Some groups, some masterminds, or more than others, determine what fits your financial budget and go ahead and just take action.
• 26:36
  Speaker 1: Absolutely.
• 26:37
  Speaker 1: I love that.
• 26:38
  Speaker 1: So let's talk a little bit about growth trajectory.
• 26:41
  Speaker 1: What is your growth trajectory looking like?
• 26:44
  Speaker 1: Let's look out into the future and tell me, tell me what, what you're seeing at least for ourselves.
• 26:50
  Speaker 2: Right for me, and me and my wife right routine yeah um, growing partnerships, right, uh, continually passive, investing, continually building the foundation in our backyard.
• 26:59
  Speaker 2: And look, I mean we, we partner in with other groups on, you know, on syndications opportunities where we think uh makes sense and fits within our overall investment philosophy.
• 27:08
  Speaker 2: And continuing looking at other asset classes as well.
• 27:11
  Speaker 2: So we're in the storage, we're getting into mobile home parks in 2024 as well and that's our premise for getting diversified.
• 27:17
  Speaker 2: So you know, it starts at the base.
• 27:19
  Speaker 2: The base is our backyard and, uh, you know, kind of extrapolating from there.
• 27:22
  Speaker 2: And look, man, continuously being active, uh, continue being this.
• 27:26
  Speaker 2: Uh, you know, a student of the game, right, participating in conferences where it makes sense.
• 27:29
  Speaker 2: Me and my wife typically rarely you will find us at a conference together we divide and conquer.
• 27:35
  Speaker 2: So we're having a nine-year-old son has activities, coaching, stuff like that nature.
• 27:41
  Speaker 2: So we divide and conquer in almost 90% of what we do.
• 27:44
  Speaker 2: But there are certain conferences that we do we go to together.
• 27:47
  Speaker 2: So it's only a couple handful a year, but typically we're out there dividing and conquering.
• 27:50
  Speaker 1: That's the only way to get it done yeah, that, no, that's awesome, um so so look, I want to be respectful of your time.
• 27:56
  Speaker 1: It's been awesome having you on today, melvin.
• 27:58
  Speaker 1: For people that want to get in touch with you, what's the best way for them to reach out?
• 28:02
  Speaker 2: so, look, I'm on all the social channels.
• 28:04
  Speaker 2: So, uh, melvin Landrum on Facebook, melvin Landrum on LinkedIn.
• 28:08
  Speaker 2: Typically, you see me with a picture looking somewhat like this.
• 28:10
  Speaker 2: I'm on Instagram also as well, and you can find me on our website.
• 28:15
  Speaker 2: It's morelandequitycom, and you know we have a channel as well on YouTube.
• 28:20
  Speaker 1: Fantastic.
• 28:21
  Speaker 1: Well, Melvin, look, it's been a pleasure to have you on the podcast today.
• 28:25
  Speaker 1: Thank you very much.
• 28:26
  Speaker 1: Hope you have a great rest of your day and enjoy having you on.
• 28:30
  Speaker 2: Thanks for the opportunity.
• 28:31
  Speaker 2: I'm very appreciative.
• 28:36
  Speaker 1: Thank you for joining us on this episode of Go Big with Gibb.
• 28:37
  Speaker 1: If you haven't already go, follow us on social media at Gibb Irons.
• 28:40
  Speaker 1: We'll see you next time, thank you.