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Pip Stehlik - The Path From Family Grocery Business To Real Estate Mastery · REL Freedom Podcast

• 0:05
  Speaker 1: Welcome to the Real Freedom Show, where we inspire you to pursue your passion to gain time and financial freedom through opportunities in real estate.
• 0:11
  Speaker 1: I'm your host, mike Swenson.
• 0:13
  Speaker 1: Let's get some real freedom together.
• 0:15
  Speaker 1: Hello everybody, welcome to another episode of Real Freedom, talking about building time and financial freedom through opportunities in real estate.
• 0:28
  Speaker 1: I am your host, mike Swenson, and today I'm super excited We've got an amazing guest here, pip Stelik, and Pip is the founder of Pip's Path to Property.
• 0:38
  Speaker 1: You grew up in a family owned grocery business, worked there Obviously you're going to share more about that Growing their revenue, had 250 employees and then got into real estate.
• 0:47
  Speaker 1: I think, if I remember right, it was like 16 properties and 16 months or something like that and now you focus on helping to educate people.
• 0:54
  Speaker 1: So you've educated more than 40,000 entrepreneurs in 18 countries and live in the Kansas City area.
• 1:00
  Speaker 1: So, pip, welcome to the show.
• 1:02
  Speaker 2: Great to be on here, mike.
• 1:03
  Speaker 2: It's a lot of fun.
• 1:05
  Speaker 2: I'd like to know how many times I've told people what I've done in the past, because it seems like every time I do something I've got to explain a little bit about who I am.
• 1:13
  Speaker 2: So this would just be for the umpteen time We'll do that.
• 1:16
  Speaker 2: But yeah, so I grew up in Nebraska and so I'm born and raised a corn husker, went to school at the University of Nebraska, all that good stuff.
• 1:23
  Speaker 2: My parents had a small IGA grocery store, so if you're listening or watching this, listening to or watching this you probably have to be a certain age to remember IGA grocery stores.
• 1:34
  Speaker 1: But we had one in my hometown growing up.
• 1:36
  Speaker 2: Yeah, there you go, so independent grocery's alliance, and so that's what my dad had.
• 1:41
  Speaker 2: It was called Norman's IGA, in a little town called Nebraska City.
• 1:44
  Speaker 2: Nebraska, it's a town on the Missouri River, about 7,500 people, and so we definitely are in a flyover state and, you know, nobody knows where Nebraska is.
• 1:54
  Speaker 2: When I go to other places it seems like it's right in the middle of the country and I saw my dad work in 60, 70, 80 hours a week and I said to myself I don't want to do that.
• 2:03
  Speaker 2: But yet he had me working there on the weekends, had me working there in the summer times, and I literally hated it and it just it wasn't for me.
• 2:12
  Speaker 2: And so I knew exactly what I wanted to do and kind of the background is, when I was 12 years old, my dad took me to an IGA grocery store convention and we went to Chicago.
• 2:23
  Speaker 2: Now it was the summer, I was 12 years old at that point and so I'm thinking we're going to Chicago, maybe we're going to a Cubs game or a White Sox game, because I'm a sports fan and he says, no, we're going to an IGA grocery store convention is what he said, mike, and I'm like well, that sounds like fun for a 12 year old kid but I didn't know is that weekend would shape the rest of my life?
• 2:45
  Speaker 2: I mean, you just don't know when that whatever is going to happen that really shapes your life is going to happen.
• 2:50
  Speaker 2: You know, it's like somebody says this is going to be the big time.
• 2:53
  Speaker 2: And so I went there as 12 years old and even though he's been ridiculed now I think he's out of jail.
• 2:59
  Speaker 2: I'm not making a joke of this, but we got to hear Bill Cosby speak or do his standup comedy on the Friday night that we got there and I didn't even know that was a job, I didn't know that's something you could do, and I was mesmerized by that, and so that was pretty cool.
• 3:15
  Speaker 2: And there were like 4,000 people at this convention, so it wasn't like it was a small thing.
• 3:19
  Speaker 2: And so this was 1980.
• 3:21
  Speaker 2: So it was before the Cosby show is, before all that kind of stuff.
• 3:24
  Speaker 2: It's before all the trouble that he's got into lately, but anyway, so I thought that was pretty cool.
• 3:29
  Speaker 2: Well then, the next morning and if you're a football fan I don't know if you're a football fan, mike, or not I were college football fans in Nebraska.
• 3:36
  Speaker 2: So anyway, we big college sports sports town in Nebraska is because of Lincoln and all the corner house, prison, football and all that.
• 3:45
  Speaker 2: Well, that next morning Lou Holts, who was the coach at that time of Arkansas, he had just won a national championship, and I would always recommend, when somebody says who would you listen to, go YouTube Lou Holts and listen to 30 minutes of him talking and not now because he's a little bit older, but 30, 40 years ago he literally he spoke for 30 minutes and I felt like I could run through a brick wall after hearing him talk and I thought you know, that's cool, how do you motivate people?
• 4:13
  Speaker 2: How would I do that?
• 4:14
  Speaker 2: And so I'm thinking I want to learn how to motivate people.
• 4:17
  Speaker 2: I want to learn how to make them laugh, and those were like my two reasons why I wanted to do something.
• 4:24
  Speaker 2: So I kind of made a decision right then and there I wanted to become a standup comedian.
• 4:27
  Speaker 2: I didn't really say it to anybody.
• 4:30
  Speaker 2: I was the youngest to six.
• 4:31
  Speaker 2: I always can make my brothers laugh.
• 4:33
  Speaker 2: I did a lot of the voices from the cartoons and the movies and it was cool for me because I'm the youngest to six and that's where the name Pip comes from.
• 4:40
  Speaker 2: It's a shortened version of Pip Squeak.
• 4:42
  Speaker 2: My real name is actually Mike, just like your host here today.
• 4:46
  Speaker 2: And but in fourth grade there were six mikes in a classroom of 25 kids and so teacher asked me if I had a different.
• 4:53
  Speaker 2: I went by anything else and I said my family all calls me Pip.
• 4:55
  Speaker 2: From then on out every teacher called me by Pip.
• 4:58
  Speaker 2: By the time I was in high school nobody even knew my real name anymore.
• 5:00
  Speaker 2: So I've always been Pip and it worked out really good because when I got done with college I went to the University of Nebraska.
• 5:07
  Speaker 2: I stayed in school and got an MBA and I literally thought MBA stood for massive bank account.
• 5:12
  Speaker 2: That was the reason I was staying there for that and anyway it's a dad joke for all the dads out there.
• 5:17
  Speaker 2: But either way, I was just about done with my MBA and I knew what I wanted to do and my mom and dad were having a conversation with me.
• 5:23
  Speaker 2: I guess I'm the youngest six.
• 5:24
  Speaker 2: My dad and mom are now empty nesters and they're asking me if I meant you know, what companies am I interested in?
• 5:29
  Speaker 2: What industries are what I like to get into with my MBA?
• 5:35
  Speaker 2: And I said to my dad the typical 23 year old answer I said I don't know.
• 5:38
  Speaker 2: Because when you're 23, what do you know?
• 5:40
  Speaker 2: You know nothing.
• 5:41
  Speaker 2: You think you do, but you don't.
• 5:42
  Speaker 2: Maybe when you're 16 or 18, you know everything, but by the time you're 23, you know nothing.
• 5:46
  Speaker 2: And so I told my dad you know what I really want to do with the rest of my life?
• 5:50
  Speaker 2: And his eyes got real big and he kind of leaned in and he said what do you want to do?
• 5:53
  Speaker 2: I said I want to be a stand up comedian.
• 5:55
  Speaker 2: And he wasn't real proud of that answer.
• 5:57
  Speaker 2: I don't think.
• 5:58
  Speaker 2: And so for the next 10 or 15 minutes he told me how, what a stupid idea that was going to be and that I'd probably be living at home with him.
• 6:04
  Speaker 2: And for 15 minutes I don't think my mom said a word.
• 6:07
  Speaker 2: And it was kind of funny because after 15 minutes I looked over at my mom.
• 6:10
  Speaker 2: I said aren't you going to say anything?
• 6:12
  Speaker 2: And she said well, you're not going to cuss on stage, are you?
• 6:14
  Speaker 2: And that's all she was worried about If I was going to get on stage and curse and cuss and all those kinds of things.
• 6:19
  Speaker 2: And I said mom, you can go to any show I ever do, you'll be just fine.
• 6:23
  Speaker 2: And so for the next seven years I went around the United States to a stand up comedy.
• 6:26
  Speaker 2: I was young, I was dumb, I was having a good time but I was enjoying it, but I wasn't making a lot of money.
• 6:31
  Speaker 2: And so I've been all these places that nobody had ever heard of and all these small clubs across the Midwest and stuff.
• 6:38
  Speaker 2: And so then I met my future wife.
• 6:42
  Speaker 2: Her name is Jennifer, and six months into the relationship, and when I met Jennifer, it was love at first sight.
• 6:47
  Speaker 2: Jennifer, on the other hand, she's a bit of a slow learner is like what I like to say, because it took me years to kind of wear her down.
• 6:54
  Speaker 2: But six months into the relationship, she says Pip, what do you want to do with the rest of your life?
• 6:59
  Speaker 2: And I said well, I really want to be a stand up comedian.
• 7:01
  Speaker 2: She looked at me.
• 7:02
  Speaker 2: She says Pip, I've seen your act.
• 7:04
  Speaker 2: What do you want to do with the rest of your life?
• 7:06
  Speaker 2: And so it was really kind of an aha moment.
• 7:09
  Speaker 2: I mean, she'll tell you it didn't go down just like that, but that's how I heard it.
• 7:13
  Speaker 2: And so in 1999, we got married.
• 7:16
  Speaker 2: I quit doing stand up comedy.
• 7:17
  Speaker 2: I went back to work at the family on grocery store full time and I hated it and I was just trying to figure out how to make more money.
• 7:24
  Speaker 2: My wife wanted to be a stay at home mom.
• 7:27
  Speaker 2: She wanted to have kids.
• 7:28
  Speaker 2: I wanted to make money.
• 7:29
  Speaker 2: And so I'm reading all these books like Rich Dad, poor Dad, and all the different books that you can even think of, and I guess I truly believe everything kind of happens for a reason, because I'm reading all these books and in 2002, my wife is pregnant with our first baby and I read this book called Rich Dad, poor Dad.
• 7:47
  Speaker 2: Somebody told me to read this book and so I bought every purple book I could ever even find at that point Although Rich Dad books are purple for those of you guys that don't know what I'm talking about and it was sure enough.
• 8:00
  Speaker 2: I do believe things happen for a reason, because about four months later, on the back page, this is 2002.
• 8:06
  Speaker 2: So it's on the back of a newspaper where people were advertising back in 2002, not a lot of newspaper advertising, probably in today's world, I'm guessing.
• 8:14
  Speaker 2: And Mike's going man, I don't even have to talk with this guy, I can just sit here and let him talk the whole time.
• 8:19
  Speaker 2: So anyway, 2002, I see this newspaper ad, zig Ziglar is coming to Omaha, nebraska, and I'm like, well now that sounds pretty cool.
• 8:28
  Speaker 2: I like Zig Ziglar.
• 8:30
  Speaker 2: I had some cassette tapes of Zig Ziglar, which is kind of interesting because, quite frankly, cassette tapes obviously most people don't know what those are anymore.
• 8:37
  Speaker 2: If you're a kid you'll see it in a museum one day.
• 8:40
  Speaker 2: But a cassette tape is what I had called see you at the top.
• 8:43
  Speaker 2: And I'd listen to a bunch of his stuff because he was very motivating, and so when I saw he was coming to Omaha in 2002, I wanted to go see him and so I did, and it was at the Omaha Civic Auditorium.
• 8:54
  Speaker 2: There was this big stage event and there were probably three or 4,000 people in it, and Zig Ziglar wasn't the first person on stage.
• 9:02
  Speaker 2: Obviously, there was other people that they brought out and this one guy came out and he talked about real estate.
• 9:08
  Speaker 2: His name is James Smith and he talked about doing real estate and he said come to this three day class we're going to have.
• 9:15
  Speaker 2: It's 99 bucks, and my brother and it was for two people.
• 9:18
  Speaker 2: So my brother and I got up and we paid 99 bucks and three weeks later we were in a class.
• 9:23
  Speaker 2: Four weeks later we were in a class in Omaha, nebraska, attending a three day real estate seminar.
• 9:30
  Speaker 2: And you got to remember we're working 60, 70, 80 hours a week now at the family on grocery store.
• 9:35
  Speaker 2: We hate it.
• 9:36
  Speaker 2: We're trying to figure out how to make more money.
• 9:38
  Speaker 2: Both my brother and I had infant daughters at home.
• 9:41
  Speaker 2: My wife had now had our first baby.
• 9:43
  Speaker 2: Her name is Riley, my wife's name is Jen.
• 9:45
  Speaker 2: So when I went to this class my wife was at home with Riley nursing one month old baby.
• 9:50
  Speaker 2: My brother, jim, who was at the class with me, had a three month old baby at the time.
• 9:55
  Speaker 2: So we're trying to figure out how to make more money.
• 9:57
  Speaker 2: And it was kind of interesting because you know we're we're running this grocery business and we're not making a lot of money, we're making a whopping.
• 10:05
  Speaker 2: We're each pulling $36,000 a year out of the business.
• 10:06
  Speaker 2: I had another brother that was in it and the only way we could figure out how to make more money was to kill off one of our brothers.
• 10:12
  Speaker 2: That was the only way I could figure it out and I didn't think that was a good exit plan.
• 10:15
  Speaker 2: And so we're trying to figure out how to make this money.
• 10:19
  Speaker 2: Read all the rich dead books.
• 10:20
  Speaker 2: Go to the Zig Ziglar thing.
• 10:21
  Speaker 2: He says hey, get into real estate, it's a great game.
• 10:25
  Speaker 2: So my brother and I are sitting there at a three day training and we invested a bunch of money in ourselves.
• 10:29
  Speaker 2: We spent back and this is not adjusted for inflation.
• 10:32
  Speaker 2: We spent $35,000 on additional training back in 2002.
• 10:37
  Speaker 2: And so people are like that's insane.
• 10:40
  Speaker 2: Well, it can be, you can call it insane if you want.
• 10:43
  Speaker 2: We bought 16 properties in 16 months using other people's money, and so to me that was a good investment, because then we just catapulted that from there.
• 10:53
  Speaker 2: And the cool thing for me is, when I was sitting in this three day training, I'm listening to this one guy speak his name is Tim Viller for three days and I'm thinking I'd like to do what that guy's doing Because he motivated me, he was funny and he taught me a whole bunch of stuff about real estate.
• 11:11
  Speaker 2: So my thought is I'm going to go out build this really big real estate portfolio, because I wasn't interested in doing the grocery business.
• 11:20
  Speaker 2: We were worried about when Walmart was coming to town, not if they were coming to town.
• 11:24
  Speaker 2: So we knew we needed to have a plan B, and so that's what we did is we got this real estate knowledge.
• 11:30
  Speaker 2: We bought a lot of properties and then, to my surprise, about two years after getting our real estate portfolio up and going, the company that I bought the training from they were affiliated with Robert Kiyosaki, rich Dad Port Ad.
• 11:44
  Speaker 2: They asked my brother and I to come on as mentors, and I literally said to the guys that I don't want to be a mentor, and he said I've never been turned down.
• 11:52
  Speaker 2: Why do you not want to be a mentor?
• 11:53
  Speaker 2: I said well, I'd rather teach people in groups rather than one on one.
• 11:58
  Speaker 2: I said my wife even says I talk better to 50 people than I do one on one.
• 12:02
  Speaker 2: That is not a compliment coming from your wife, by the way.
• 12:05
  Speaker 2: I'm just saying I like to talk in groups.
• 12:07
  Speaker 2: I enjoy that.
• 12:08
  Speaker 2: That's something I've always enjoyed.
• 12:09
  Speaker 2: And so he said mentor for 18 months and you'll be an independent contractor.
• 12:14
  Speaker 2: Then you can want to.
• 12:16
  Speaker 2: If you want to speak in front of groups of people, you'll have all that knowledge.
• 12:20
  Speaker 2: So not only was I building my own real estate portfolio, I was out helping people all around the United States building their real estate portfolios.
• 12:27
  Speaker 2: And somebody said to me one time before I became a mentor they said your real estate portfolio will exponentially get better by helping other people build theirs.
• 12:39
  Speaker 2: And I thought it was kind of an odd thing to say.
• 12:41
  Speaker 2: But when you don't know what you don't know, you just you don't know.
• 12:44
  Speaker 2: And so and that was very true, because I started mentoring other students and we were able to do bigger deals, better deals, things like that, because we were only solving our problems.
• 12:54
  Speaker 2: We're solving other people's problems.
• 12:56
  Speaker 2: And then, lo and behold, in 2007, I finally get the opportunity to start speaking for other groups of people and I started in the United States, going all around the United States teaching classes.
• 13:07
  Speaker 2: I actually got mentored in 2007 by Robert Kiyosaki himself to go out and teach these types of programs around the world.
• 13:15
  Speaker 2: And from 2007 to 2020, I literally went out as an independent contractor for other people and, as Mike said, to 18 different countries and I've got all kinds of stories for you.
• 13:27
  Speaker 2: But everywhere I went, you learn something new and you can bring it back to your own business.
• 13:32
  Speaker 2: But what I learned is that we're way more similar across the world than we are different.
• 13:37
  Speaker 2: We're really not that different.
• 13:40
  Speaker 2: We may speak different languages.
• 13:41
  Speaker 2: We may look different, have different skin colors, different cultures, different worlds.
• 13:45
  Speaker 2: We may speak different religions, but at the end of the day, we all want to, for the most part, be able to have a little less stress in our life, be able to make a little bit more money and hopefully, create a legacy and help our families, and that's really what the real estate world is all about, and so that was kind of my life From 2007 to 2020, I got paid to go all around the world and teach people how to do real estate while I was doing my own stuff, and so that was really cool for me.
• 14:10
  Speaker 2: But then COVID happened and the world shut down and I didn't have an audience anymore, and I have to admit, doing things on Zoom doesn't feel the same as doing them in person, but that's where the world was, and so my partners and I created a company called Pips Path to Property.
• 14:25
  Speaker 2: The reason we did that and I think this is probably the biggest thing that I learned is, throughout those what?
• 14:32
  Speaker 2: 13 to 15 years, that I was an independent contractor for other people.
• 14:35
  Speaker 2: My contract never said that I had to give out my email or my phone number.
• 14:40
  Speaker 2: But anytime, if I sold somebody something, they got my email and they got my phone number.
• 14:46
  Speaker 2: And why did they get it was because I knew, if I sold you some training, that I needed to be there to support it, even though I knew there were other people that were supporting these students along the way.
• 14:55
  Speaker 2: I felt that it was my responsibility, if you were parting with your hard earned money, that I was going to support you, and I literally have stories of students from 10, 15, 20 years ago, 18 years ago we'll go with that now that are still emailing me because they can and they want to.
• 15:11
  Speaker 2: And so, in 2020, got the opportunity to start my own company.
• 15:14
  Speaker 2: It was literally based on the fact that I'd been there to support people, and when we started Pips Path, we had one mission in mind and that was to really have the best customer service out there, and so all of our students that are a part of what we do, they ask us questions, we do Zoom calls with them, we hold their hand and everybody says, well, how long do you do that?
• 15:34
  Speaker 2: For Our programs are for life.
• 15:36
  Speaker 2: And why are they for life?
• 15:38
  Speaker 2: Because your question may not be ready yet.
• 15:41
  Speaker 2: You may not be ready for that commercial deal, but when you have that question six months from now or six years from now, there's going to be somebody there holding your hand, and so that's kind of how we built Pips Path is to do that, and I've now got the opportunity to go all around the United States.
• 15:54
  Speaker 2: Haven't done any more internationally since, I'm going to say, 2016, 2017,.
• 16:00
  Speaker 2: I got arrested in Hong Kong, and so that's a whole nother story, probably for another day, but that kind of just was like wow, you can get arrested, and it was that they were always all about the fact that we weren't, maybe didn't have the right what's the word?
• 16:14
  Speaker 2: I want to use working visa to be in that country, and so that was kind of a scary thing.
• 16:19
  Speaker 2: I got kicked out of Canada, arrested in Hong Kong, and after that I'm like I'm not sure I want to do this international stuff anymore, because when I go to Minneapolis, when I go to New York or Florida or Texas, nobody cares, because I'm an American, I'm from Nebraska, so either way, that's kind of the background.
• 16:35
  Speaker 2: That's my story.
• 16:36
  Speaker 2: We have now had the opportunity to teach thousands of people all across the United States with PIP's path, and we have some really cool things that we've branched off with that.
• 16:46
  Speaker 2: We have our own podcast.
• 16:48
  Speaker 2: Now we have multiple podcast and we're going to be recording our other podcast starting.
• 16:53
  Speaker 2: We already started a second one called the Wealth Debate, but then we have another one that we're starting this weekend or I guess it would be on Monday, and that's called Front Row Church, and so we're going to be putting sermons out there, and that's just who we are as a group of people.
• 17:06
  Speaker 2: I want to make sure that we're doing things in a way that we're constantly doing it with the right integrity and the right intention.
• 17:13
  Speaker 2: It's not about getting rich quick.
• 17:15
  Speaker 2: It's about helping people out, and if you're helping up people get Zigg Ziggler says what they want you're going to get everything that you want.
• 17:20
  Speaker 2: So that's my story.
• 17:23
  Speaker 2: I could talk for 10 hours on this.
• 17:26
  Speaker 2: Any questions you got for me, micah, I'll shut up for a second.
• 17:30
  Speaker 1: You obviously have a diverse background in real estate and have done a lot of different things inside of real estate.
• 17:35
  Speaker 1: I work with agents, people getting started investing, and so they all kind of struggle with what are these first couple steps or what type of deals do I look at?
• 17:44
  Speaker 1: Where do I go?
• 17:45
  Speaker 1: Is it short term rental?
• 17:46
  Speaker 1: Is it flips?
• 17:47
  Speaker 1: Is it buy and holds?
• 17:48
  Speaker 1: Is it duplexes?
• 17:49
  Speaker 1: How do you help steer people to help figure out where they should get started inside of investing in real estate?
• 17:54
  Speaker 2: Great question, no-transcript.
• 18:02
  Speaker 2: And what happens is most people they start with the property.
• 18:05
  Speaker 2: And to me that's not the right thing to start with, because in fact we teach people to quit looking at houses, because if you're looking at houses, that house is gonna tell you what kind of a deal it is.
• 18:15
  Speaker 2: So if you're more interested in a specific strategy, figure out what that strategy is.
• 18:22
  Speaker 2: Is it traditional buying holds?
• 18:24
  Speaker 2: Is it, as you said, short-term rentals?
• 18:27
  Speaker 2: Is it lease option, rent to own type of things?
• 18:29
  Speaker 2: Is it wholesale deals?
• 18:30
  Speaker 2: Because if you're in Minneapolis, the right type of strategy there is gonna be different than the right type of strategy in Cleveland, ohio, which is totally different than what's in Los Angeles.
• 18:41
  Speaker 2: So if somebody says I wanna invest locally, then we have to determine what strategy works locally.
• 18:46
  Speaker 2: So a traditional rental property is not gonna work in San Francisco or Los Angeles.
• 18:51
  Speaker 2: It just isn't, because you can do the math all day long and one of the things we do teach everybody is that every real estate transaction is truly a math problem and it'll tell you is it profitable or not.
• 19:04
  Speaker 2: Obviously, there's risk involved, but if you can solve the math problem, then it tells you is it a deal or not.
• 19:09
  Speaker 2: So figure out what strategy you wanna do, what area works for that strategy and then what type of.
• 19:16
  Speaker 2: Then the property will come in third on that.
• 19:18
  Speaker 2: So I think strategy, area and property is kind of one of the big take-homes that we teach.
• 19:22
  Speaker 2: But the other thing that we teach a lot and this all comes from Kiyosaki is just learning how to use leverage and you talk about that in your podcast on a regular basis is leverage, and how much can we do alone is so much less than what we can do as a group.
• 19:36
  Speaker 2: And whether that is a joint ventureship, whether it's a syndication and everybody talks about OPM and that's kind of this hot button name.
• 19:45
  Speaker 2: And OPM is not just your mortgage, it's other people's money, like JV partners and syndicate partners, but it's also your tenant paying your rents every day If you're, when you look at OPM, your tenant who's paying you a thousand or $2,000 or $3,000 a month.
• 20:02
  Speaker 2: That's OPM paying you monthly so you can pay your mortgage, so that you can pay whatever your expenses are in life.
• 20:09
  Speaker 2: So that's OPM.
• 20:10
  Speaker 2: When we do lease options, we get something called a nonrefundable ops consideration upfront.
• 20:15
  Speaker 2: That's truly OPM that we can use for the current deal to pay the investor for another deal.
• 20:22
  Speaker 2: At the end of the day, when you're even doing a wholesale deal, it's not so much OPM but the capital that you gained from that selling that contract for a profit.
• 20:31
  Speaker 2: That's money that you didn't have.
• 20:34
  Speaker 2: Today it's earned income but nonetheless it is coming from somebody else who's buying that contract from you.
• 20:39
  Speaker 2: So I think a lot of it comes down to strategy, area and property.
• 20:41
  Speaker 2: So somebody needs to tell me what are they interested in?
• 20:44
  Speaker 2: Now I can go through the benefits of each strategy and tell you what I think about them, but at the end of the day you gotta kind of tell me, as a student, what's the strategy that you're really looking at, and then do you live in an area where that strategy even makes sense?
• 21:00
  Speaker 1: I agree with that fully, because people get so hung up on there's like only one way to go and it's like I've gotta figure out that right way with where I'm at.
• 21:07
  Speaker 1: And I think it's that balance between you gotta start somewhere to get experience, to get better, and I think people are just afraid of choosing the wrong thing right away too.
• 21:16
  Speaker 1: But I always encourage people to treat real estate investing, especially the early on days, as an education.
• 21:21
  Speaker 1: You're gonna go get your MBA.
• 21:23
  Speaker 1: You're gonna spend some money.
• 21:24
  Speaker 1: If you go get your first flip and you don't make money on it, well, you got an education and that's gonna help you to get sharper for your next one too.
• 21:31
  Speaker 2: Oh, definitely.
• 21:32
  Speaker 2: And Kiyosaki says work to learn.
• 21:35
  Speaker 2: So you're working as you're learning through all those different environments, and I think that's a huge thing.
• 21:40
  Speaker 2: You know a little thing that I tell and I'm sure you've heard of this and maybe done it on your own.
• 21:44
  Speaker 2: I tried to talk my wife into it.
• 21:46
  Speaker 2: She said no.
• 21:47
  Speaker 2: When I first started in real estate, one of the things I heard from one of my trainers was hey, why don't you buy a duplex, live in one side, rent out the other side, and that mortgage can be paid by your tenant or a portion of it.
• 21:59
  Speaker 2: Well, my wife wouldn't go for that, so I didn't get to do it.
• 22:01
  Speaker 2: But a lot of young couples and young people I will say you know the process to buy a two or three or four unit is the same as the process to buy a single family.
• 22:10
  Speaker 2: There's really no different and even the mortgages can be treated the same way because it's still a residential property and you can.
• 22:16
  Speaker 2: If you're living in one unit, it's owner occupied, so you can get a lot of the same benefits.
• 22:20
  Speaker 2: And even if you're a vet, that VA loan will work on any residential property.
• 22:25
  Speaker 2: So you can do a single family, a duplex or a three and literally get your tenants to pay a large portion of your expenses every month and learn a lot about property as you do it.
• 22:35
  Speaker 2: I mean it's a great stepping stone for a lot of young people, new investors, that are doing this.
• 22:40
  Speaker 1: Yeah, that was something that we had focused on early on, but we ended up buying a townhouse right away and right during the market crash, and then we were under water and so we had this grand idea of wanting to do a duplex, but then it didn't work and I was working for a nonprofit and so.
• 22:54
  Speaker 1: But I was actually just talking with somebody yesterday that hasn't yet bought their first property a younger guy and I said, hey, if I were you, I think there's a lot of value there looking at that duplex, fourplex and doing an owner occupy and getting in there.
• 23:07
  Speaker 1: There's.
• 23:07
  Speaker 1: It's a great opportunity for newbies if it works in your life.
• 23:10
  Speaker 1: Real estate agents, are you tired of letting the busyness of life get in your way from achieving your real estate investing goals?
• 23:17
  Speaker 1: I'm super excited to announce we've created the Real Freedom Investor Agent Tribe.
• 23:21
  Speaker 1: It's a place for you to come, get educated and network with others so that you can make sure that you're hitting your real estate investment goals.
• 23:29
  Speaker 1: So find out more on our website, realfreedomcom.
• 23:32
  Speaker 1: Click on the store link.
• 23:33
  Speaker 1: We've got a membership.
• 23:34
  Speaker 1: We've got a mastermind group and some private coaching as well.
• 23:37
  Speaker 1: Check it out.
• 23:38
  Speaker 1: I've priced it super low.
• 23:40
  Speaker 1: The goal is to get you in.
• 23:41
  Speaker 1: Not have price be a determining factor to keep you from your goals.
• 23:45
  Speaker 1: So come check it out, schedule a call with me and we're happy to see where your real estate journey is going to take you.
• 23:50
  Speaker 1: Now, as you're analyzing deals and looking, what are some of the areas that you're excited to invest in or excited to dig deeper into?
• 23:58
  Speaker 2: So one of the things I've always been a fan of is lease options, rent to own.
• 24:01
  Speaker 2: We're seeing a huge influx of people that need that because the mortgage payment they could afford is now buying them less house than they could have even imagined Two years ago, when interest rates were half of what they are today.
• 24:15
  Speaker 2: So lease option is always a strategy and once again, it's a math problem.
• 24:20
  Speaker 2: If the math problem works, you go forward with the deal.
• 24:23
  Speaker 2: If the math problem doesn't work, you either change the property or you change some other dynamic of it.
• 24:29
  Speaker 2: But truly, we want to set people up for success and that's what we do through our lease option and rent to own program.
• 24:34
  Speaker 2: And if I have what we call they're called tenant buyers, somebody who's a tenant with the option to buy in the future we've got to be able to put together a path for them to get qualified to buy the house.
• 24:47
  Speaker 2: So if somebody comes up to me and says I got $500 to put down on a property and I can afford $500 a month, what kind of house do you want?
• 24:54
  Speaker 2: Well, I want a million-dollar property.
• 24:55
  Speaker 2: Well, you're in dream world there, you're in fantasy land, because those numbers just don't add up.
• 24:59
  Speaker 2: So we've got to make sure all the math works.
• 25:02
  Speaker 2: So lease option has always been a strategy and it's worked for me in up markets, down markets or sideways markets.
• 25:08
  Speaker 2: But the most recent deal I'm working on is we're just getting ready to break ground down in Texas on a 16-bed assisted living memory care facility and if all goes well there's room to put three more buildings or 64 units in there, but it's going to be more of a.
• 25:28
  Speaker 2: Every room is individual person in there.
• 25:31
  Speaker 2: There's no shared rooms.
• 25:33
  Speaker 2: They have each building will have its own chef and so they'll have specific meals plans and things like that.
• 25:40
  Speaker 2: So that's the first time I've ever ventured into that world.
• 25:44
  Speaker 2: I've done a lot of other types of investing, but that's probably the first time I've ever done assisted living and I really believe that with assisted living, literally our population base is so right for that, because I'm not even a baby boomer, I'm still a whatever.
• 26:01
  Speaker 2: The next one is Gen X underneath that.
• 26:03
  Speaker 2: But that baby boomer group from 45 to 64, they're obviously getting to the point where a lot of the older ones need to be in assisted living facilities if they haven't passed away yet, and the kids that are my age, in their fifties, are having to put mom and dad in these places and they want something that's close.
• 26:23
  Speaker 2: They want something that the mom and dad can have dignity and if you can specialize in, ours is going to be memory care.
• 26:30
  Speaker 2: That's probably one of the bigger growth areas that we see out there.
• 26:34
  Speaker 2: I think we've got a large opportunity to not only make money as a real estate investor but to help a lot of people in their later years in life and the families that go that are a part of that scenario.
• 26:46
  Speaker 1: So out of curiosity, because I saw one of those pop up the other day where it was previously used for assisted living and it sounded like it wasn't getting the occupancy that they thought and that's why this property is on the market, where my head goes there.
• 26:59
  Speaker 1: So for memory care, as, as a real estate person, I don't necessarily know how do we find the skilled labor Like, what's the plan?
• 27:05
  Speaker 1: How do you go through that to figure out?
• 27:07
  Speaker 1: Okay, as I'm running numbers, what do I need to budget for to make sure that's staffed properly, to make sure if you've got the full time chefs there?
• 27:15
  Speaker 1: You know that's going to cost some money, so how do you figure out what's needed there to be able to decide if you can get the numbers to work?
• 27:21
  Speaker 2: We actually have and I'm and this is where you know the leverage is so important Two of the partners that are going to be in that investment with us are actually going to be working there.
• 27:31
  Speaker 2: They're actually owner occupied, meaning they're going to be there managing the facility on a regular basis.
• 27:37
  Speaker 2: And so there's a lot of people out there and I don't care what the business in I've had franchises in the past and they they want to own stuff, but they just financially don't have the ability to do it.
• 27:51
  Speaker 2: They have the skill sets to run it, they have the skill set and the desire to be in the business, but they don't understand the financing part of it.
• 27:59
  Speaker 2: So I think, as a real estate investor, when you understand the numbers and we get all the numbers to work, if I can bring somebody who's an expert in all those things that you just mentioned hiring the right people, being there, the boots on the ground, if you will this is in Texas.
• 28:12
  Speaker 2: I live in Kansas city.
• 28:13
  Speaker 2: There's no way I would want to do a property like this where I didn't have somebody who was in the ownership group with boots on the ground, because it really, when it comes down to it, any business is a marketing business, so that what it comes down to, and so the facility that you're looking at, obviously there isn't either enough demand in the area or they're not marketing as well as the other people in that area for assisted living, you know to clientele, and so we want to make sure that there's first of all demand, and so we've gone through and we've seen that demand.
• 28:48
  Speaker 2: You want to make sure that there's waiting lists for all the other facilities in the area that are similar to yours.
• 28:55
  Speaker 2: And if you can offer Something that's a little bit more specialized and know that there's a wait, a wait list for that, and that gives you at least a little bit of an advantage.
• 29:06
  Speaker 2: There's still risk.
• 29:07
  Speaker 2: I wish, I mean I wish there was no risk in that deal, because it's a multi-million dollar deal.
• 29:11
  Speaker 2: But at the end of the day you know you're gonna take risk, but hopefully they're calculated risk and you know it's we're, we're building one at a time.
• 29:20
  Speaker 2: I mean we could have gone in and built four, four units at 16 beds per unit, because we bought the land for the whole thing and it's zoned correctly to do that, because we're buying it with the intent of the future.
• 29:32
  Speaker 2: But when it's all said and done.
• 29:34
  Speaker 2: If that first one doesn't go up to plan, we're not out.
• 29:37
  Speaker 2: I mean because I'd rather have you know fought for empty on a 16 unit building, then then 25 empty on a 64 unit building, or whatever the numbers end up being it's interesting that you're talking about that balance of demand, with kids wanting to be close to their parents.
• 29:51
  Speaker 1: I remember with my dad and his mom grew up in a small town, so there wasn't a lot of options.
• 29:56
  Speaker 1: His preference was to keep her in town versus going somewhere else.
• 30:00
  Speaker 1: There was an assisted living facility there, but it wasn't locked, and so my grandma was going through dementia and so she was slowly starting to kind of deteriorate.
• 30:10
  Speaker 1: But there was a memory care facility being built that was opening up soon.
• 30:13
  Speaker 1: That was locked, and so that was the end plan.
• 30:16
  Speaker 1: And so, because the facility she was in wasn't locked, every couple weeks or whatever, grandma would kind of work her way out the door and and a neighbor down the street would give a call and say, hey, here she is, and they'd bring her back in.
• 30:28
  Speaker 1: And then for us I know there was so much relief for my dad when we finally got her into the memory care facility where she could, number one, get the care she really needed.
• 30:36
  Speaker 1: But because it was in town, then he didn't have to go to the next town over, and so that demand is going to keep growing and growing and growing, as we have that aging population, and so, yeah, somebody's gonna figure that out and somebody's gonna put together those facilities and make a great plan, and so if that's something you're interested, why not you be the person that solves those problems and reaps through a word out of solving that problem for other people?
• 30:58
  Speaker 2: And I think a lot of it comes down to.
• 31:00
  Speaker 2: Kiyosaki talks a lot about OPM, other people's money, but other people's time is huge, but other people's other assets like their, their skill sets, you know, other people's energy, all those types of things.
• 31:12
  Speaker 2: Because I don't know anything about memory care, I know nothing about the assisted living world, but if I have somebody on my team that's part of that ownership group does, then obviously they're gonna have a vested stake in that property to make sure that it's going well, because they're their salaries dependent upon the, the profit and loss basically of that facility to a certain extent or a portion of their salary.
• 31:35
  Speaker 2: And so you know they wanted to grow as well, and so I think there's just a huge opportunity in that world.
• 31:42
  Speaker 2: How long will that opportunity persist?
• 31:45
  Speaker 2: I have no idea.
• 31:46
  Speaker 2: But I mean I always make the comment everybody's like talking about AI, this AI that at the end of the day, no matter what AI we have out in the world, we're still getting a place to rest our heads, and so that's why I like real estate.
• 31:59
  Speaker 2: It's not political, it's not.
• 32:01
  Speaker 2: I know some people will think I'm crazy when I say it's not political.
• 32:04
  Speaker 2: I've been buying properties, no matter who the president is for the last 21 years and I'm gonna keep buying them for the next 21 years or longer.
• 32:11
  Speaker 2: And I don't get a say who the president is, I get a vote.
• 32:14
  Speaker 2: That doesn't mean that person's gonna be the person I want.
• 32:17
  Speaker 2: So it doesn't matter if there's liberals or or are conservatives in the offices.
• 32:22
  Speaker 2: People need a place to rest their heads and I'm all for Real estate as that one thing that we all need.
• 32:29
  Speaker 2: I mean we all probably have some type of smartphone, iphone, I mean, if I asked the dumb question of being a, how many of you guys have a blackberry and most people would say no, they don't have one anymore.
• 32:39
  Speaker 2: But back in the at some point 2006 to 2008.
• 32:43
  Speaker 2: They were the hottest phones out there.
• 32:46
  Speaker 2: I don't know what kind of phone we're gonna need 10, 12, 15 years from now, but I do know we're all gonna need a place to rest our heads.
• 32:53
  Speaker 2: So I think real estate whether you like it or not, we all need it and that's why I find it to be a logical thing.
• 32:59
  Speaker 2: Not to mention, there's great benefits with taxes and leverage, and you already know all those things, mike, and that's that's a huge win for us.
• 33:06
  Speaker 2: As an investor, pip, I've appreciated the conversation here today.
• 33:10
  Speaker 1: Thank you so much for sharing your story and your insight here for people that want to learn more about PIP's path and what you're doing.
• 33:16
  Speaker 1: How can they do that?
• 33:17
  Speaker 2: We have a website go to pipspathcom.
• 33:19
  Speaker 2: Literally it's hunt a free content on there.
• 33:22
  Speaker 2: You're more than welcome to go absorb all that free content and then if you want to email us with a specific question on anything, it's team at pipspathcom.
• 33:31
  Speaker 1: We appreciate you sharing your story and best luck in the future.