Latest / Results Driven / Episode 137: The Passive Income Lie (And What Actually Works) with Eddie Speed

Transcript

Episode 137: The Passive Income Lie (And What Actually Works) with Eddie Speed · Results Driven

• 0:00
  SPEAKER_01: And what I would say to a person that's going to go out and do this, whether you've been in for six days, six years, or 16 years, get your accounting squared away because that is what gives you the ultimate freedom.
• 0:16
  SPEAKER_01: If you don't really have the money you think you have, then you don't have that freedom that you keep talking about, right?
• 0:27
  SPEAKER_00: Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
• 0:33
  SPEAKER_00: I'm Tiffany High.
• 0:34
  SPEAKER_02: And I'm Josh High.
• 0:35
  SPEAKER_00: And this is the Results Driven Podcast, where we share proven strategies to build systems that master sales, grow your team, and create a self-sustaining business with predictable income.
• 0:46
  SPEAKER_00: Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset that you need to succeed.
• 0:55
  SPEAKER_00: Let's dive in.
• 1:00
  SPEAKER_02: Welcome back, everyone, to the results-driven podcast.
• 1:02
  SPEAKER_02: And today I'm very excited to bring on a very special guest, the man, the myth, the legend, Mr.
• 1:07
  SPEAKER_02: Eddie Speed, who has done over 50,000 seller finance notes.
• 1:12
  SPEAKER_02: And we're going to be talking about how you can leverage that strategy to build wealth in this ever-shifting real estate market that we're in today.
• 1:19
  SPEAKER_02: Eddie, welcome to the show.
• 1:20
  SPEAKER_02: Thank you.
• 1:21
  SPEAKER_02: So I want to start off just with everyone here on the show to better understand.
• 1:25
  SPEAKER_02: Well, first, let's start with this.
• 1:26
  SPEAKER_02: And then I'll ask you more about what did you start off doing in real estate and kind of go down that path of got you to whatever got you to the current strategy that you're focusing on now, which is the notes business.
• 1:37
  SPEAKER_02: But I would imagine there's probably something in this story where you saw an opportunity to earn lots of money in real estate.
• 1:46
  SPEAKER_02: In fact, that's what that's what excites most people about getting into real estate.
• 1:49
  SPEAKER_02: And then we want to ask people, okay, well, is it really the money?
• 1:53
  SPEAKER_02: But it's not just the money, it's what we think the money is going to get us, which is freedom.
• 1:56
  SPEAKER_02: We want to be able to do what we want, when we want, and spend our time with the people we want to spend it with.
• 2:01
  unknown: Right.
• 2:01
  SPEAKER_02: And then what I've seen just in my real estate journey, whether you're wholesaling, whether you're flipping, that's very active.
• 2:08
  SPEAKER_02: And then you have rental properties.
• 2:09
  SPEAKER_02: And everybody says that's passive.
• 2:10
  SPEAKER_02: And I know you've got to take on that.
• 2:12
  SPEAKER_02: We found out that it's not so passive.
• 2:14
  SPEAKER_02: That's even an active business as well.
• 2:16
  SPEAKER_02: So I want to plant that seed because I'm sure we'll come back to that.
• 2:18
  SPEAKER_02: Yeah.
• 2:19
  SPEAKER_02: But let's start off.
• 2:20
  SPEAKER_02: Why real estate?
• 2:20
  SPEAKER_02: What got you into real estate?
• 2:22
  SPEAKER_02: And like how did you get started?
• 2:23
  SPEAKER_01: You know, I don't think I've ever told you this story.
• 2:25
  SPEAKER_01: I have no idea.
• 2:27
  SPEAKER_01: All right.
• 2:27
  SPEAKER_01: So I'm an old guy, right?
• 2:29
  SPEAKER_01: I think you're pretty young.
• 2:30
  SPEAKER_01: Yeah.
• 2:31
  SPEAKER_02: I think you're pretty young.
• 2:32
  SPEAKER_01: Uh, I started out as a very young guy, though.
• 2:34
  SPEAKER_01: I was 20 years old in 1980.
• 2:36
  SPEAKER_01: Wow.
• 2:36
  SPEAKER_01: Right.
• 2:37
  SPEAKER_01: And I met a guy that later became my father-in-law.
• 2:41
  SPEAKER_01: So he's Martha's dad, right?
• 2:44
  SPEAKER_01: Martha and I will be married 44 years here.
• 2:47
  SPEAKER_01: A little bit.
• 2:48
  SPEAKER_01: Yeah.
• 2:48
  SPEAKER_01: And uh, but anyway, I met him in 1980.
• 2:51
  SPEAKER_01: He was a fireman, and so he was a part-time real estate investor.
• 2:55
  SPEAKER_01: So he had rental houses and he bought foreclosures and he had built houses and he had trailer parks, and it was the story.
• 3:02
  SPEAKER_01: It was the millionaire next door, typical story.
• 3:04
  SPEAKER_01: I'm 20 years old.
• 3:06
  SPEAKER_01: I have an associate's degree in ranch management.
• 3:08
  SPEAKER_01: I'm a cowboy.
• 3:09
  SPEAKER_01: Like I am legitimately a cowboy.
• 3:11
  SPEAKER_01: I make more living riding horses at that era in my life than I did anything else that I did.
• 3:16
  SPEAKER_01: Well, so I meet Mr.
• 3:19
  SPEAKER_01: Shoemake.
• 3:20
  SPEAKER_01: I grew up hard, worked hard in stockyard, so I knew how to work hard.
• 3:23
  SPEAKER_01: Like, and so I brought some work ethic to the table.
• 3:26
  SPEAKER_01: And I met Mr.
• 3:27
  SPEAKER_01: Shoemake, and I spent probably, we started talking, and on a Sunday afternoon, and I probably spent six or seven hours with him at the kitchen table, so to speak.
• 3:36
  SPEAKER_01: Typical of him.
• 3:38
  SPEAKER_01: He said, if you want to learn more about it, why don't you meet me at the office tomorrow?
• 3:41
  SPEAKER_01: And I'm saying, okay.
• 3:42
  SPEAKER_01: He said, meet me at 6 a.m.
• 3:44
  SPEAKER_03: Okay.
• 3:44
  SPEAKER_01: Yeah.
• 3:45
  SPEAKER_01: And you showed up.
• 3:46
  SPEAKER_01: You show I showed up.
• 3:47
  SPEAKER_01: Yeah.
• 3:47
  SPEAKER_01: And he was testing me clearly.
• 3:48
  SPEAKER_01: Yeah.
• 3:49
  SPEAKER_01: But I had the same.
• 3:50
  SPEAKER_01: Were you in a relationship at the We weren't in really even dating?
• 3:54
  SPEAKER_01: We knew each other, and I knew both his daughters, and we were friends, but I wasn't fixing to be engaged to it, and he had to go rescue the son-in-law.
• 4:02
  SPEAKER_01: Okay.
• 4:03
  SPEAKER_01: Not that that would have been bad.
• 4:05
  SPEAKER_01: Yeah.
• 4:08
  SPEAKER_01: So, you know, I had the same questions everybody else had.
• 4:11
  SPEAKER_01: I didn't go get a regular college degree because I had I had pretty severe dyslexia.
• 4:16
  SPEAKER_01: Okay.
• 4:16
  SPEAKER_01: And so I know you have an engineering degree and I respect that.
• 4:20
  SPEAKER_01: And I told you earlier when we were visiting a little bit ago, I'm not an intellectual.
• 4:23
  SPEAKER_01: You know, the dyslexia thing is a real thing.
• 4:26
  SPEAKER_01: I'm not crying over it.
• 4:27
  SPEAKER_01: It's just I've learned to live with it and I've learned to work around it.
• 4:31
  SPEAKER_01: But in the other way, I don't tear, I don't recommend it.
• 4:34
  SPEAKER_01: It's just something, if you have it, then you gotta go.
• 4:36
  SPEAKER_01: Everybody's got a something.
• 4:38
  SPEAKER_01: That's my thing.
• 4:38
  SPEAKER_01: Right.
• 4:39
  SPEAKER_01: So I struggled with like the whole idea of being in finance and being, you know, being the bank, and I didn't have any money, and how in the world could I be the bank?
• 4:48
  SPEAKER_01: All the things that anybody else would think.
• 4:51
  SPEAKER_01: I thought all those first.
• 4:53
  SPEAKER_01: So when I'm talking to people about doing this, and they're like, oh my God, how would you do this?
• 4:57
  SPEAKER_01: How would that work?
• 4:58
  SPEAKER_01: I could never learn this.
• 5:00
  SPEAKER_01: Believe me, I had everything.
• 5:02
  SPEAKER_01: I'm living in a 10 by 40 mobile home that's about 40 years old.
• 5:06
  SPEAKER_01: I ain't exactly living the high life.
• 5:08
  SPEAKER_03: Yeah.
• 5:08
  SPEAKER_01: Right.
• 5:09
  SPEAKER_01: But what happened in that process is that I started really realizing that you could bring to the party what you could bring.
• 5:18
  SPEAKER_01: And if you were connected in the right way, the rest of it would connect.
• 5:22
  SPEAKER_01: Mr.
• 5:22
  SPEAKER_01: Shoemake had the money, he had the experience, he had the wherewithal to make it work.
• 5:28
  SPEAKER_01: What he needed was some shoe leather, somebody willing to hustle.
• 5:32
  SPEAKER_03: Yep.
• 5:32
  SPEAKER_01: So I started out after spending up probably two or three weeks in their office, fumbling around in papers that I didn't even know what they meant.
• 5:40
  SPEAKER_01: And I love saying.
• 5:42
  SPEAKER_01: Then he sent me out and he says, go call on realtors and home builders and real estate investors.
• 5:48
  SPEAKER_01: And in 1980.
• 5:49
  SPEAKER_01: So you were like an acquisition rep.
• 5:51
  SPEAKER_03: Okay.
• 5:52
  SPEAKER_01: And this was before like I kind of perfected the technique, you know, a couple of years later of doing courthouse research and stuff.
• 5:59
  SPEAKER_01: First guy in kind of the industry to do any of that.
• 6:01
  SPEAKER_01: But once again, there wasn't any of that back then.
• 6:03
  SPEAKER_01: It was just physically go out and you know that you'll laugh because most of your audience don't even know what this is, but it's true.
• 6:10
  SPEAKER_01: I'd go and, you know, go to the phone booth and get a yellow pages and tear out the realtors' names and just start get a map and start calling.
• 6:18
  SPEAKER_01: I know this sounds old school, like wagon wheels.
• 6:20
  SPEAKER_01: I believe it.
• 6:21
  SPEAKER_01: Whatever, but the point, the point of it is when you really look at it, it's not much different than it is today, right?
• 6:27
  SPEAKER_01: There's things that we're used to today that we didn't do back then, but the same thing was he had to find somebody that was willing just to go do something.
• 6:35
  SPEAKER_01: I didn't have any money.
• 6:36
  SPEAKER_01: But I never will forget, like I was really kind of at a point where I was so fired up about doing this.
• 6:42
  SPEAKER_01: I wanted to do this.
• 6:43
  SPEAKER_01: I got this.
• 6:44
  SPEAKER_01: This was gonna be my college, right?
• 6:47
  SPEAKER_01: This is gonna be something I could do.
• 6:49
  SPEAKER_01: And I'm like, Mr.
• 6:50
  SPEAKER_01: Shoemake, you keep talking about buying notes and buying notes.
• 6:54
  SPEAKER_01: And Mr.
• 6:55
  SPEAKER_01: Shoemake, I don't have any money.
• 6:58
  SPEAKER_01: And he's real southern, Hattiesburg, Mississippi, right?
• 7:01
  SPEAKER_01: Very southern.
• 7:02
  SPEAKER_01: He said, Boy, you're missing half the equation.
• 7:05
  SPEAKER_01: I'm like, damn?
• 7:07
  SPEAKER_01: Yeah, what's going on?
• 7:09
  SPEAKER_01: What's an equation?
• 7:12
  SPEAKER_01: He said, You don't fund these deals with your money, you fund them with somebody else's money.
• 7:17
  SPEAKER_01: Oh, well, you'll have to show me how to do that.
• 7:20
  SPEAKER_01: I mean, you're not talking private money with buying these notes.
• 7:24
  SPEAKER_01: No, I mean it it would have been private money or it would have been finance company money, or just and so it's the same thing that you and I now have talk about at like a very high scale in the business.
• 7:35
  SPEAKER_01: The key to this business is if you're buying notes, you have to be able to get part of your money back or all your money back.
• 7:42
  SPEAKER_01: Right.
• 7:43
  SPEAKER_01: Right?
• 7:43
  SPEAKER_01: Liquidity, right?
• 7:44
  SPEAKER_01: Right?
• 7:44
  SPEAKER_01: You have to do that.
• 7:45
  SPEAKER_01: Otherwise, you'll choke any business.
• 7:47
  SPEAKER_01: You'll die.
• 7:47
  SPEAKER_03: Yeah.
• 7:48
  SPEAKER_01: And so that's what I've spent my career doing.
• 7:51
  SPEAKER_01: 50,000 notes.
• 7:53
  SPEAKER_01: I've helped people be able to do the next deals because I bought their notes in various ways where they may have kept part of the income on the note, and then they could they could go get their money back and go bait the hook again and go do another deal and go do the next deal and all that.
• 8:11
  SPEAKER_01: And that's really what I now would say 46 years later in this business, I truly have a passion for is to help people do it in a way that they are just like Eddie's, and I look at myself as just a vessel.
• 8:24
  SPEAKER_01: Like at this point, I just have been down this road and I can help help guide other people and how this might be done.
• 8:31
  SPEAKER_01: But the truth of the matter is, it's like once you get this down, then you essentially own your own bank.
• 8:39
  SPEAKER_01: Everybody's been to the title company.
• 8:41
  SPEAKER_01: If you've bought a house and you signed a document, it's called a note.
• 8:46
  SPEAKER_01: Right?
• 8:47
  SPEAKER_01: A promissory note, right?
• 8:49
  SPEAKER_01: It has it says how much you owe, it says what interest you're gonna pay, it says what your payment is, it says how long you're gonna pay it, sign it at the bottom and has some other stuff in there.
• 8:58
  SPEAKER_01: And then if it's real estate note, then it's secured by another document.
• 9:02
  SPEAKER_01: Now in Ohio, that's called a mortgage, and in Texas, that's called a deed of trust.
• 9:06
  SPEAKER_01: But that's what makes it real estate secured is you sign that other document, now you're pledging the property as collateral.
• 9:12
  SPEAKER_01: So if the loan went bad, you can go after the property.
• 9:14
  SPEAKER_01: Right.
• 9:15
  SPEAKER_01: So that's what the note business is.
• 9:17
  SPEAKER_01: Right.
• 9:17
  SPEAKER_02: It's holding those.
• 9:18
  SPEAKER_02: And in fact, I want to I want to zoom out just a little bit here and then dive back deeper into this.
• 9:23
  SPEAKER_02: So again, going back to my comment about most people get into real estate because they want to have freedom, right?
• 9:29
  SPEAKER_02: The money should give them freedom, and that freedom gives them the time to do what they want when they want, and spend that time with the people they want to spend it with.
• 9:36
  SPEAKER_02: And people don't understand that there's steps to this.
• 9:39
  SPEAKER_02: And uh, we call this the three-legged stool.
• 9:41
  SPEAKER_02: The first leg of the stool is where you're the person and you're you're grinding, you're hustling, you're wearing all the hats.
• 9:46
  SPEAKER_02: Like you start off as an acquisition rep to learn this process.
• 9:48
  SPEAKER_02: You know, Teff and I, when we started our business, it was us sitting in every seat doing all the work, right?
• 9:53
  SPEAKER_02: And the business stopped when we stopped working.
• 9:56
  SPEAKER_02: And that was necessary to get us to a certain point.
• 9:58
  SPEAKER_02: Now, when you get to that point, in order to graduate from the first leg of the stool to the second leg, is you go and you build a team.
• 10:05
  SPEAKER_02: So you get back more of your time, but most importantly, you can magnify your results.
• 10:10
  SPEAKER_02: Yeah.
• 10:11
  SPEAKER_02: Because we all are capped by 24 hours a day, seven days a week.
• 10:14
  SPEAKER_02: Yeah.
• 10:14
  SPEAKER_02: But when you have five people on a team, now you just got 24 hours a day, seven days a week, times five, or even times 10, or however big you want to grow that.
• 10:21
  SPEAKER_02: Now, when you magnify your results, you magnify your nest egg.
• 10:25
  SPEAKER_02: And as you magnify your nest egg, then you can graduate when you get to a certain point where you become the investor, Lake Three, where now you no longer have to trade your time for money.
• 10:36
  SPEAKER_02: Your money makes money for you.
• 10:38
  SPEAKER_02: And that's like private lending, and that's like this, which this notes business, which I think is really, really, really interesting.
• 10:44
  SPEAKER_02: And I know we've had tons of conversations over this, which is why we wanted to bring you on the show.
• 10:48
  SPEAKER_02: But let's dive into from a third grade, fifth grade level.
• 10:53
  SPEAKER_02: So I would acquire property.
• 10:54
  SPEAKER_02: Let's just walk through the process step by step.
• 10:56
  SPEAKER_02: I would acquire property, and the acquisitions, guys, for anyone who's watching this, is the same.
• 11:01
  SPEAKER_02: It doesn't matter if you're selling this with seller finance, if you're rehabbing it, if it's a rental that you want to buy, you want to wholesale it, you're gonna market directly to sellers or find something on the MLS or whatever uh channels you want.
• 11:13
  SPEAKER_02: The acquisitions process is the same.
• 11:15
  SPEAKER_02: You're gonna talk to sellers, talk to real estate agents, you're gonna make an offer.
• 11:19
  SPEAKER_02: Then when you get that contract, now it's about how do you exit that deal.
• 11:22
  SPEAKER_02: And that's the wholesaling, the flipping, the selling with a note.
• 11:26
  SPEAKER_02: So I have the deal, got it the same way I normally get any other deal.
• 11:30
  SPEAKER_02: It's just now I'm looking through a different lens.
• 11:32
  SPEAKER_02: And let's say I choose, okay, let's go down this thing pencils.
• 11:36
  SPEAKER_02: I am now gonna go market this property to a what type of buyer?
• 11:41
  SPEAKER_02: Let's talk about that real fast.
• 11:42
  SPEAKER_01: You're marketing it to a left-behind buyer.
• 11:45
  SPEAKER_01: Okay.
• 11:45
  SPEAKER_01: Explain that.
• 11:46
  SPEAKER_01: And so I don't want to get too technical, but there's certain things about the market that people don't understand and they don't, they think a left-behind buyer is somebody that's terrible.
• 11:55
  SPEAKER_01: Yeah.
• 11:56
  SPEAKER_01: The buyer of last resource.
• 11:57
  SPEAKER_01: Sounds like the black sheep, right?
• 11:58
  SPEAKER_02: Yeah, that's not that's not the case though.
• 12:00
  SPEAKER_01: Um, so the conventional lending business under writing has gotten really, really tight after the virus.
• 12:07
  SPEAKER_01: So this is now like six years old, right?
• 12:11
  SPEAKER_01: But Mortgage Bankers Association has an index, so it's just a scoring system.
• 12:16
  SPEAKER_01: So you can kind of relate to the numbers.
• 12:19
  SPEAKER_01: That number before the virus happened was 185.
• 12:23
  SPEAKER_01: Okay.
• 12:24
  SPEAKER_01: Okay.
• 12:25
  SPEAKER_01: It has hovered back and forth around 100 every since the virus.
• 12:31
  SPEAKER_01: So that means the underwriting standard is almost half of what it was before.
• 12:38
  SPEAKER_02: So is that meaning that it's opening up the floodgates for more buyers or is it buyers?
• 12:43
  SPEAKER_02: So it's tightening the floodgates.
• 12:44
  SPEAKER_01: Yeah, it's you're probably looking at 40% of the buyers that that were perfect in 2019 cannot get a conventional mortgage today.
• 12:52
  SPEAKER_02: Interesting.
• 12:52
  SPEAKER_02: Okay.
• 12:53
  SPEAKER_01: So there's a huge left-behind market.
• 12:55
  SPEAKER_01: Right.
• 12:55
  SPEAKER_01: You have to understand that to know that I'm really serving people.
• 13:00
  SPEAKER_01: I'm going to make a lot of money doing it, but I'm I'm giving homeownership to somebody that otherwise just couldn't get a loan.
• 13:05
  SPEAKER_01: Right.
• 13:05
  SPEAKER_02: And so I even touch on something really quick that's happening in today's market is you have inventory sitting longer and having less buyers that qualify for the traditional financing obviously doesn't help with that problem.
• 13:21
  SPEAKER_02: So this is a tool that we can put in our tool belt to help open up this opportunity to more potential buyers, which should hopefully help us sell the property at a better price and sell it faster.
• 13:32
  SPEAKER_02: And as we all know, time is money.
• 13:34
  SPEAKER_02: Um, but continue that that you're starting on.
• 13:36
  SPEAKER_01: So that's a big deal, is that if I'm gonna sell or finance a property and think of seller financing as the simplest industry that we're super all familiar with is the car industry.
• 13:47
  SPEAKER_01: By here, pay here.
• 13:48
  SPEAKER_01: Buy here, pay here.
• 13:49
  SPEAKER_01: The car industry owner finances a car, right?
• 13:52
  SPEAKER_01: And so we're owner financing a house.
• 13:54
  SPEAKER_01: Yep, right?
• 13:55
  SPEAKER_01: We're both the seller and the bank.
• 13:57
  SPEAKER_01: So you'll buy it from us, you're gonna make a down payment, we're gonna qualify you to make sure that we like you, you know, like your ability to pay and your uh your willingness to pay and all that good stuff, right?
• 14:09
  SPEAKER_01: And then you're just gonna pay me the mortgage instead of going out and getting a more a third-party loan from the bank or a mortgage company, right?
• 14:16
  SPEAKER_01: Okay.
• 14:16
  SPEAKER_01: So that's what happens.
• 14:18
  SPEAKER_01: And right now we have found that there's this big underserved market, and we're not criticizing the traditional mortgage business.
• 14:26
  SPEAKER_01: We're just saying, hey, if you guys, you guys are leaving them behind, you don't mind if we make them a loan, do you?
• 14:31
  SPEAKER_01: Right.
• 14:32
  SPEAKER_01: Yeah.
• 14:32
  SPEAKER_01: Kind of that.
• 14:32
  SPEAKER_01: Yeah.
• 14:33
  SPEAKER_01: And so that's exactly what we do.
• 14:35
  SPEAKER_01: Here's an interesting fact.
• 14:37
  SPEAKER_01: A traditional loan origination industry is down 90% from what it was in 2021.
• 14:46
  SPEAKER_01: 2021, there were four and a half trillion dollars in conventional mortgages made on residential housing.
• 14:54
  SPEAKER_01: This past year, about 440 billion.
• 14:58
  SPEAKER_01: Wow.
• 14:59
  SPEAKER_01: That's a 90% reduction.
• 15:01
  SPEAKER_01: Seller financing on compared to that, has not had any slippage in the amount of seller financing that's been done for the past three years.
• 15:10
  SPEAKER_01: It's been about 90 to 100,000 transactions a year.
• 15:14
  SPEAKER_01: So it's not near as big as the loan origination business, but it's not falling because it's serving this underserved market.
• 15:20
  SPEAKER_01: Right.
• 15:21
  SPEAKER_01: Even though way less houses sold last year than the year before, right?
• 15:25
  SPEAKER_01: So so obviously you can see why the loan origination business isn't near as good, right?
• 15:30
  SPEAKER_01: No refines.
• 15:31
  SPEAKER_01: But if you look at our business, it's like it's not slipping.
• 15:35
  SPEAKER_01: And so it's kind of like I think you've caught on to this clearly.
• 15:38
  SPEAKER_01: It's the underserved market that like people aren't talking about, but boy, if you get into that, it could really be something.
• 15:45
  SPEAKER_01: Okay.
• 15:45
  SPEAKER_01: So yes, somebody buys a house and so they sell or finance it to this buyer, to this buyer.
• 15:52
  SPEAKER_01: And then the question becomes, oh my God, how can I keep doing that?
• 15:57
  SPEAKER_02: Yeah, because this is what went through my head at first.
• 16:00
  SPEAKER_02: I mean, I'm thinking if I go and I sell a property and someone puts 15% down, right?
• 16:04
  SPEAKER_02: Let's just make numbers easy.
• 16:05
  SPEAKER_02: Let's say it's a$100,000 house.
• 16:07
  SPEAKER_02: Yeah.
• 16:07
  SPEAKER_02: If they're putting 15% down, that means they're giving me$15,000, but I've got$85,000 now tied into this deal, which, yes, I'll have interest payments and I'll collect interest over time.
• 16:19
  SPEAKER_02: And you guys typically on these types of deals are 10, 11-ish percent.
• 16:24
  SPEAKER_02: Is that right?
• 16:25
  SPEAKER_02: So it's not a terrible, you know, interest rate.
• 16:28
  SPEAKER_02: It's actually a really good interest rate for the until you run out of money.
• 16:32
  SPEAKER_02: Right.
• 16:32
  SPEAKER_02: And that's the problem.
• 16:33
  SPEAKER_01: So let's talk through that.
• 16:35
  SPEAKER_01: So that's where I came in.
• 16:36
  SPEAKER_01: And I figured out that I could work with real estate investors, and the market that I serve is that I work with real estate investors so that they can go sell all or part of their mortgage.
• 16:49
  SPEAKER_01: Okay.
• 16:49
  SPEAKER_01: I made them now in the mortgage banking business.
• 16:53
  SPEAKER_02: Yeah.
• 16:53
  SPEAKER_02: And this is important for everyone who's listening in.
• 16:56
  SPEAKER_02: What do you think happens when you go to the bank to buy your house with a conventional loan?
• 17:01
  SPEAKER_02: They're going to underwrite you to fit you into a certain standard, right?
• 17:06
  SPEAKER_02: And they want you to fit into that standard because what they're going to do is they're going to go and turn and sell that note to the secondary market, which is where you have Fannie Freddie, right?
• 17:14
  SPEAKER_02: They're part of the secondary market.
• 17:16
  SPEAKER_02: So these banks, what they're doing is they're selling the note, getting their cash back so they could so they can go write another loan.
• 17:20
  SPEAKER_02: And that's what Eddie's talking about, what he's now doing in the private investing space.
• 17:26
  SPEAKER_01: Let's see if we call it.
• 17:27
  SPEAKER_01: Most people, let's just talk about what's normal, right?
• 17:30
  SPEAKER_01: Most people that have got have bought a house, you and Tiffany, you got a letter one day and it says your mortgage has been sold.
• 17:36
  SPEAKER_01: Yep.
• 17:36
  SPEAKER_01: And now all of a sudden you're gonna mo you're gonna pay this other company.
• 17:39
  SPEAKER_01: Well, that's normal in the mortgage banking world.
• 17:42
  SPEAKER_01: Like that's not abnormal.
• 17:43
  SPEAKER_01: It's very abnormal for them not to sell the loan.
• 17:46
  SPEAKER_01: Right.
• 17:46
  SPEAKER_01: And so buying and selling loans is not a new business.
• 17:50
  SPEAKER_01: We didn't invent that.
• 17:51
  SPEAKER_01: Yeah.
• 17:51
  SPEAKER_01: But what it enables you to do is the one thing I've kind of learned is I kind of coach people into like this side of the business.
• 17:59
  SPEAKER_01: Because when you get to where you can do this, then all of a sudden you could build your own bank, Josh.
• 18:04
  SPEAKER_01: Yep.
• 18:05
  SPEAKER_01: Because you don't have to go sell all your payments.
• 18:08
  SPEAKER_01: If you're getting$1,000 a month, you might want to keep$200 or$300 a month.
• 18:12
  SPEAKER_01: And you could do that.
• 18:13
  SPEAKER_01: And then you could sell the rest of it.
• 18:15
  SPEAKER_01: Yep.
• 18:16
  SPEAKER_01: And so there's all kinds of ways that, you know, as it gets a little deeper, there's a little bit of some, you know, how it's structured that somebody would need to understand.
• 18:25
  SPEAKER_01: Which is really that box that I was talking about.
• 18:27
  SPEAKER_02: Just like the conventional lender, they've got to fit you into this box.
• 18:30
  SPEAKER_02: So you've got to make sure that you've got the right parameters for you to be able to sell that paper on the back end.
• 18:34
  SPEAKER_01: And what changed my business more than any single thing was when I caught on to the fact that I could coach real estate investors how to go create their mortgages right so that they could immediately be sold and I could help them buy the notes.
• 18:50
  SPEAKER_01: And I got to kind of be a part of revolutionizing the business.
• 18:54
  SPEAKER_01: I kind of by accident.
• 18:56
  SPEAKER_01: I didn't really plan it, but it did happen.
• 18:59
  SPEAKER_01: And actually happened with a guy that probably most people in this audience have never even heard of, but everybody's heard of the company he built.
• 19:08
  SPEAKER_01: Homevestors.
• 19:09
  SPEAKER_01: So his name was Ken D'Angelo.
• 19:10
  SPEAKER_01: He lived in Dallas Fort Worth, like I do.
• 19:13
  SPEAKER_01: Most creative guy I've ever met.
• 19:15
  SPEAKER_01: I mean, that guy was amazing.
• 19:18
  SPEAKER_01: And I was his note guy.
• 19:20
  SPEAKER_01: And we developed a system for the franchisees for homevestors to create the note and then be able to immediately go sell the notes.
• 19:28
  SPEAKER_01: And we would buy 1,500, 2,000, 3,000 notes a year from that group.
• 19:34
  SPEAKER_01: That way they were turning, but they were keeping part of the payment.
• 19:37
  SPEAKER_01: So they were building, it was a way for them to have the effect of rental property without the headaches.
• 19:42
  SPEAKER_02: Yeah.
• 19:43
  SPEAKER_02: So you know, that's an interesting point.
• 19:45
  SPEAKER_02: Passive income, passive income, freedom, time to do what we want, when we want, with the people we want to spend that time with.
• 19:51
  SPEAKER_02: And as a result, people get into buying rental properties to do that.
• 19:56
  SPEAKER_02: And I'll just I'll share some personal information.
• 19:58
  SPEAKER_02: We were talking about this.
• 20:00
  SPEAKER_02: It's not a secret that Tiff and I were selling our rental portfolio.
• 20:03
  SPEAKER_02: We've already sold well over half of it.
• 20:05
  SPEAKER_02: And uh the reason for that is because when we were looking at our PL every single month, I mean, just think about this simple math.
• 20:12
  SPEAKER_02: If I'm collecting$300 cash flow a month on a on a single family house, which is a lot in today's market, like it's most people are striving for$150, maybe$200.
• 20:22
  SPEAKER_03: Yep.
• 20:23
  SPEAKER_02: Heck, let's even say it's$200.
• 20:24
  SPEAKER_02: Let's say we're cash flowing$200 a month.
• 20:27
  SPEAKER_02: Over one year, it's$2,400.
• 20:28
  SPEAKER_02: Over two years, that's what,$4,800.
• 20:31
  SPEAKER_02: Now, our rental properties for the most part don't have tenants in them for longer than two or even three years.
• 20:37
  SPEAKER_02: In fact, most of them turn in one year.
• 20:39
  SPEAKER_02: So yeah, cool.
• 20:40
  SPEAKER_02: I made$4,800 over two years, but guess what?
• 20:42
  SPEAKER_02: I have to go do now.
• 20:43
  SPEAKER_02: I have to go fix the place up.
• 20:45
  SPEAKER_02: Like there's maintenance that has to be done.
• 20:47
  SPEAKER_02: There's, you know, we got to touch up paint, we've got to make this thing move in ready for a new tenant.
• 20:51
  SPEAKER_02: And those were costing us anywhere from five to seven thousand dollars on the low end.
• 20:55
  SPEAKER_02: And on the high end, we even had$10,000 to$12,000.
• 20:58
  SPEAKER_02: And so when you look at your cash flow over two or three years, it's wiped out the moment a tenant moves out.
• 21:02
  SPEAKER_02: And so the only thing that you really gain from that is someone paying down your mortgage, gaining equity there.
• 21:07
  SPEAKER_02: And then you're gaining equity if it appraises or appraises, if it appreciates.
• 21:11
  SPEAKER_02: And so we were looking at this thinking we could do so much more with this type of capital.
• 21:16
  SPEAKER_02: Like, and again, this is on an active business.
• 21:19
  SPEAKER_02: It's not passive.
• 21:20
  SPEAKER_02: Whereas the notes business, the way that you're talking about it, if you have someone else servicing, if you have all these things in place, that's truly passive.
• 21:26
  SPEAKER_02: And so why go into the notes business when everyone is hearing passive income through buying rentals?
• 21:35
  SPEAKER_01: Well, I've been around the real estate investing business a long time.
• 21:38
  SPEAKER_01: I would say since from I developed a note system for homevestors in 1990.
• 21:43
  SPEAKER_01: So I would say that most of my career, since 1990, which has now been a long time, right?
• 21:50
  SPEAKER_01: Most of my career has been oriented but with helping somebody like you.
• 21:54
  SPEAKER_01: Or it was Ken D'Angelo that founded Homevestors or another thousand real estate.
• 22:00
  SPEAKER_01: Investors, right?
• 22:00
  SPEAKER_01: So I've spent a lot of my career working with guys.
• 22:04
  SPEAKER_01: And the first thing I would say to you is you can't fight timing.
• 22:08
  SPEAKER_01: It's like fighting the ocean.
• 22:10
  SPEAKER_01: Yeah.
• 22:11
  SPEAKER_01: Right.
• 22:12
  SPEAKER_01: There are certain things that will work in certain market conditions.
• 22:15
  SPEAKER_01: And a lot of times in life, we try to paste that market condition into the current situation, and that's not the market.
• 22:23
  SPEAKER_01: Right.
• 22:23
  SPEAKER_01: So if you were buying rentals in Ohio in 2014 and you sold them last year, you crushed it.
• 22:31
  SPEAKER_01: You did really well, yeah.
• 22:32
  SPEAKER_01: Right.
• 22:32
  SPEAKER_01: First of all, we had an inordinate amount of appreciation.
• 22:35
  SPEAKER_01: Houses were stupid too cheap in 2014.
• 22:39
  SPEAKER_01: I know I've owned almost a thousand assets in Ohio.
• 22:42
  SPEAKER_01: I know this market, right?
• 22:44
  SPEAKER_01: They were crazy cheap.
• 22:46
  SPEAKER_01: And now they're more expensive than they are in Texas, right?
• 22:50
  SPEAKER_01: Really.
• 22:50
  SPEAKER_01: That's wild.
• 22:51
  SPEAKER_01: It is wild.
• 22:52
  SPEAKER_01: And you could buy a house for 40% of what it cost in Texas for the same house in 2014.
• 22:58
  SPEAKER_01: So, first of all, people did really well and they caught the market at the perfect market timing.
• 23:03
  SPEAKER_01: But see, what you're describing to me now is another problem, which is you have this crazy amount of equity.
• 23:11
  SPEAKER_01: You owe this much, the house is worth this much, and the rest of it's just your equity.
• 23:16
  SPEAKER_01: It's your profit.
• 23:17
  SPEAKER_01: But wait a minute, you hadn't gotten paid for it.
• 23:19
  SPEAKER_01: And as you're describing your cash flow, you're certainly not getting paid for it every month.
• 23:24
  SPEAKER_01: Or if you you averaged it out over every month, you're not getting paid.
• 23:28
  SPEAKER_01: So all this crazy amount of equity, you're just crossing your fingers, waiting for the day to get the money.
• 23:33
  SPEAKER_01: Yep.
• 23:33
  SPEAKER_01: And now you start realizing because you now have made enough money that you think more like a wealth investor.
• 23:39
  SPEAKER_01: You're like, Tiffany, this is bad math.
• 23:42
  unknown: Yeah.
• 23:45
  SPEAKER_01: It's the other way around.
• 23:46
  SPEAKER_01: I know how smart Tiffany is, trust me.
• 23:48
  SPEAKER_01: I know, I know exactly.
• 23:50
  SPEAKER_01: But you guys are looking at each other going, this is bad math.
• 23:53
  SPEAKER_01: Yeah.
• 23:53
  SPEAKER_01: And so all of a sudden, that's where we kind of find ourselves in the market.
• 23:57
  SPEAKER_01: But people were so programmed because they did so good with rentals from 2014 to about 2022.
• 24:05
  SPEAKER_01: And everybody has Facebook.
• 24:07
  SPEAKER_01: I mean, this look at this audience.
• 24:08
  SPEAKER_01: I mean, they they've somehow got connected with you in some kind of social media platform, probably in some way.
• 24:14
  SPEAKER_01: Right.
• 24:14
  SPEAKER_01: We're listening to social media, is what is it we're being messaged, and not everything this is the same in every market.
• 24:22
  SPEAKER_01: Let's talk about the simplest of examples.
• 24:25
  SPEAKER_01: Okay.
• 24:25
  SPEAKER_01: I know it's a little risky to do math on a podcast, but I think I can get away.
• 24:30
  SPEAKER_01: I'm gonna try it.
• 24:31
  SPEAKER_01: I think our audience is smart.
• 24:33
  SPEAKER_01: The average rent in the United States is very close to$1,800.
• 24:37
  SPEAKER_01: It's slightly over$1,800.
• 24:39
  SPEAKER_01: That's the average rent in the United States.
• 24:41
  SPEAKER_01: And the average on a single family house.
• 24:44
  SPEAKER_02: Okay.
• 24:44
  SPEAKER_01: Okay.
• 24:45
  SPEAKER_01: So we know the math, you and I.
• 24:48
  SPEAKER_01: Before you make your mortgage payment to the bank, you calculate what that house is worth based on its income.
• 24:56
  SPEAKER_01: Right?
• 24:57
  SPEAKER_01: Net income.
• 24:59
  SPEAKER_01: So you get$1,800, and the gold standard is$15% of that$1,800 goes out the door in expenses.
• 25:05
  SPEAKER_01: You're paying taxes and insurance and the plumber and the roof and the redo until the tenant moves out and all the things you've been describing, right?
• 25:12
  SPEAKER_01: Now you take$1,800 and you have$900 in expenses and you have$900 left.
• 25:17
  SPEAKER_01: So your net income on that rent house before you made your payment to the bank is$900.
• 25:23
  SPEAKER_01: That's pretty easy, math, isn't it?
• 25:24
  SPEAKER_01: It is.
• 25:25
  SPEAKER_01: Take that identical house and seller finance it, and your average payment's gonna be about$2,000.
• 25:31
  SPEAKER_01: But wait a minute.
• 25:32
  SPEAKER_01: When that hot water heater went out on the house, did you send the invoice to the bank?
• 25:37
  SPEAKER_01: Nope.
• 25:38
  SPEAKER_01: Did you call him about the roofing uh bill you had?
• 25:41
  SPEAKER_01: Nope.
• 25:41
  SPEAKER_01: You also don't have to take it.
• 25:43
  SPEAKER_01: Did he pay your taxes and insurance for you?
• 25:45
  unknown: No.
• 25:46
  SPEAKER_01: Okay.
• 25:47
  SPEAKER_01: So you have no expenses on a seller finance note, and 50% of your income on a rental you lose out the door in expenses.
• 25:55
  SPEAKER_01: Yep.
• 25:56
  SPEAKER_01: So you have$900 net income on a rent house and$2,000 net income on a seller finance note.
• 26:03
  SPEAKER_01: That is the normal math today.
• 26:05
  SPEAKER_02: Yeah.
• 26:06
  SPEAKER_02: Which that math makes it a no-brainer.
• 26:09
  SPEAKER_01: It makes it a no-brainer to go that race.
• 26:11
  SPEAKER_01: So as you know, my son runs this area where we really help people convert rentals and stuff.
• 26:16
  SPEAKER_01: And, you know, I was on a little training with him yesterday.
• 26:19
  SPEAKER_01: And so, you know, this is kind of my our internal tribe that we help.
• 26:23
  SPEAKER_01: And I said, Wood, so you model this every day, and you know some of the people he models it for, including you.
• 26:29
  SPEAKER_01: And so he models it for some pretty big time operators.
• 26:32
  SPEAKER_01: And he said, sometimes it's only twice as much net income, and sometimes it's three times as much net income.
• 26:39
  SPEAKER_01: But it's between two and three times the net income you're netting on a rental if you carried it.
• 26:45
  SPEAKER_01: So what that means is market timing.
• 26:48
  SPEAKER_01: Yeah.
• 26:49
  SPEAKER_01: Right?
• 26:50
  SPEAKER_01: That would not have been the same truth in 2015.
• 26:54
  SPEAKER_03: Yeah.
• 26:55
  SPEAKER_01: Now that's interesting.
• 26:56
  SPEAKER_02: In fact, I think this is a perfect segue.
• 26:58
  SPEAKER_02: Can you give like a quick debrief of how you guys are helping investors, whether it's convert their rentals into these seller finance or even like us, some of our flips we're looking to sell that way too.
• 27:10
  SPEAKER_02: Can you just walk through?
• 27:11
  SPEAKER_02: Yeah, I think you guys have something revolutionary here.
• 27:14
  SPEAKER_02: Yeah.
• 27:14
  SPEAKER_02: And I would love the audience to hear what that is.
• 27:16
  SPEAKER_01: Okay.
• 27:17
  SPEAKER_01: So what we figured out was is that we can help somebody with this process.
• 27:22
  SPEAKER_01: Usually we'll get somebody down the road and we'll take them through some kind of a little coaching program or a little bit of it.
• 27:27
  SPEAKER_01: People have to kind of be retaught the business.
• 27:30
  SPEAKER_01: Sometimes some of the things we learn on the internet are not necessarily the right truth.
• 27:35
  SPEAKER_01: Right.
• 27:35
  SPEAKER_01: You agree with that?
• 27:37
  SPEAKER_01: I agree, yes.
• 27:37
  SPEAKER_01: And so I think on this subject, I'm teaching the right truth of the business.
• 27:41
  SPEAKER_01: I'm teaching how you really do something that is a life changer long term and not just the quick buck and chasing something that all of a sudden you wake up down the road and it's not going to work out the way you thought.
• 27:52
  SPEAKER_01: Right.
• 27:53
  SPEAKER_01: So usually I'll we'll put somebody down the road a little bit with some kind of guidance or coaching that we can help them with to kind of say, okay, here's what we're going to do, here's what we're looking for, here's the right property, here's the right circumstance.
• 28:06
  SPEAKER_01: And then they say, just like you.
• 28:09
  SPEAKER_01: Just like me.
• 28:10
  SPEAKER_01: Yeah.
• 28:10
  SPEAKER_02: It's just exactly the way we were.
• 28:12
  SPEAKER_01: Eddie, I I've just been through, you know, I'm in your office today.
• 28:15
  SPEAKER_01: Very impressive, by the way.
• 28:16
  SPEAKER_01: Let me tell you, very impressive.
• 28:18
  SPEAKER_01: Okay.
• 28:19
  SPEAKER_01: Thank you.
• 28:19
  SPEAKER_01: And I've been to a lot of shops, but you don't have a seller finance division in your company.
• 28:24
  SPEAKER_01: Correct.
• 28:25
  SPEAKER_01: Right?
• 28:26
  SPEAKER_01: We do not.
• 28:26
  SPEAKER_01: And I said, well, you know what?
• 28:27
  SPEAKER_01: If you didn't need to build a seller finance division, you could just hire us to do that part.
• 28:31
  SPEAKER_01: The easy button.
• 28:33
  SPEAKER_01: The easy button, and it's our game.
• 28:36
  SPEAKER_01: It's what we know.
• 28:37
  SPEAKER_01: Right.
• 28:37
  SPEAKER_01: You're the expert.
• 28:38
  SPEAKER_01: I'd have to go learn it all.
• 28:39
  SPEAKER_01: You could learn it.
• 28:40
  SPEAKER_01: You and Tiffany are plenty smart enough to go learn it.
• 28:42
  SPEAKER_01: It would take time, though.
• 28:43
  SPEAKER_01: It would take time.
• 28:43
  SPEAKER_01: And it and it and it takes away from what you're saying.
• 28:47
  SPEAKER_01: Right.
• 28:47
  SPEAKER_01: You then have to go get in a grind and do that.
• 28:50
  SPEAKER_01: And all of a sudden you're kind of you're wait a minute.
• 28:52
  SPEAKER_01: Like I designed all this where I'm a business owner.
• 28:55
  SPEAKER_01: Yep.
• 28:55
  SPEAKER_01: Right.
• 28:56
  SPEAKER_01: And so I built quite an impressive team.
• 29:00
  SPEAKER_01: I would second that.
• 29:01
  SPEAKER_01: I would say they're highly impressive.
• 29:02
  SPEAKER_01: Yeah.
• 29:03
  SPEAKER_01: Well, I mean, the guy that the guy behind the scenes, kind of the organ, you know, grinder behind the scenes, is a guy that created 65,000 owner finance notes for another company.
• 29:13
  SPEAKER_01: Yeah.
• 29:14
  SPEAKER_01: I mean, like that, we don't lack very experienced, yes.
• 29:16
  SPEAKER_01: We don't lack any experience.
• 29:17
  SPEAKER_01: Yeah.
• 29:18
  SPEAKER_01: And so we built a done-for-you process to help our clients go do this.
• 29:23
  SPEAKER_01: And then immediately we can come in and buy part of that note to give them immediate cash to go pay off their mortgage or a hard money loan or the cash they put.
• 29:32
  SPEAKER_01: We can help them do that part and they keep long-term income with the trouble factor of being the bank versus a landlord, which is way less.
• 29:42
  SPEAKER_02: Right.
• 29:42
  SPEAKER_02: So that's an important piece there.
• 29:44
  SPEAKER_02: And this is something that really caught my attention when I first learned about this service that you guys provide.
• 29:51
  SPEAKER_02: When I knew that day of closing, I'm getting and selling a portion of my note instantaneously.
• 29:59
  SPEAKER_02: I don't have to, nothing has to season, nothing has to sit there.
• 30:02
  SPEAKER_02: I don't have cash tied in this for a period of time.
• 30:05
  SPEAKER_02: It's instantaneous, which to your point helps us be liquid.
• 30:09
  SPEAKER_02: And when we're liquid, we can go grow.
• 30:11
  SPEAKER_02: We can grow faster.
• 30:12
  SPEAKER_02: We can grow bigger, right?
• 30:14
  SPEAKER_02: And I think that's an important note for everyone who's listening here to understand that.
• 30:17
  SPEAKER_01: Well, even the richest people in the world that are involved in financing use leverage, right?
• 30:24
  SPEAKER_01: And so when we say liquidity, what that means is you're saying, well, I have a long-term note.
• 30:30
  SPEAKER_01: I'm receiving monthly payments every month.
• 30:32
  SPEAKER_01: But the reality is, you know, I need to recoup some of that money back now, or most of that money back now.
• 30:39
  SPEAKER_01: But I'd like to stay in the deal.
• 30:41
  SPEAKER_01: I'd like to keep some of the cash flow.
• 30:43
  SPEAKER_01: I just can't afford to keep all the cash flow because that way I can't go do the next deal and the next deal, the next deal.
• 30:48
  SPEAKER_01: And so what I've really done is I've just copied the mortgage banking industry, which I've been around for now a long time.
• 30:56
  SPEAKER_01: And I'm I'm pretty connected in that space.
• 30:58
  SPEAKER_01: And so I help people, I help an individual real estate investor operate like a mortgage bank.
• 31:06
  SPEAKER_01: Well, let me ask you a question.
• 31:08
  SPEAKER_01: What's the tallest building in most every town?
• 31:11
  SPEAKER_01: It's probably owned by a bank, but it's probably got a bank at the top of the top of the bank.
• 31:16
  SPEAKER_01: It probably says so-and-so bank.
• 31:17
  SPEAKER_02: And uh here in Columbus, it's key.
• 31:19
  SPEAKER_02: Yeah.
• 31:20
  SPEAKER_01: So understand that you start realizing there must be something to this.
• 31:24
  SPEAKER_01: If the banking industry owns the tallest building in most every town, there's a reason for that.
• 31:30
  SPEAKER_01: And so what I've learned is the what happens to your real estate business is that real estate allowed you to be in the finance business.
• 31:40
  SPEAKER_01: Think about that.
• 31:41
  SPEAKER_02: Yep.
• 31:42
  SPEAKER_02: I can see that for sure.
• 31:44
  SPEAKER_02: Well, that's I think that's a big, that's the product really of the finance business, if you think about it.
• 31:48
  SPEAKER_02: Yeah.
• 31:49
  SPEAKER_02: Look at the car industry.
• 31:50
  SPEAKER_02: Right.
• 31:50
  SPEAKER_02: Well, there's another one that has a different product, but yeah, right.
• 31:53
  SPEAKER_01: What most people don't know is how much money each kind of department within a car dealership makes.
• 31:59
  SPEAKER_01: Yeah.
• 32:00
  SPEAKER_01: Selling the cars makes, and this is not for selling Mercedes or super expensive cars, but it's like the typical Ford or General Motors or whatever, like that level of a car.
• 32:10
  SPEAKER_01: Okay.
• 32:10
  SPEAKER_01: Like the typical profit from the sales department selling the car is about$1,500.
• 32:16
  SPEAKER_01: However, the typical profit from the finance department is about$3,500.
• 32:22
  SPEAKER_01: Almost three times.
• 32:23
  SPEAKER_01: Yes.
• 32:23
  SPEAKER_01: Yeah.
• 32:24
  SPEAKER_01: Wow.
• 32:25
  SPEAKER_01: So when you start really realizing, well, the car dealership's figured it out.
• 32:29
  SPEAKER_01: And so you and I have had this conversation.
• 32:32
  SPEAKER_01: I kind of feel like this is my mission in life right now.
• 32:35
  SPEAKER_01: I kind of feel like my experience, my living through this, my kind of being connected and knowing how to help people glue this together and teach them how to go do it and us go do some of it for them, help them go apply this the best way.
• 32:51
  SPEAKER_01: I'm pretty amped up about it.
• 32:53
  SPEAKER_01: Every time we talk about it, you're you're fired up.
• 32:56
  SPEAKER_02: So I love the energy.
• 32:58
  SPEAKER_02: So is there anything that you would add on like this topic that we haven't discussed to this point?
• 33:04
  SPEAKER_02: So I just want to make sure we don't leave anything out that you think is important for people to know, listeners to know, before we get into a piece of advice that you have for everyone.
• 33:11
  SPEAKER_01: All right.
• 33:12
  SPEAKER_01: So here's what I would say to you.
• 33:14
  SPEAKER_01: We are targeting landlords because we know that they're not making the cash flow that they were.
• 33:19
  SPEAKER_03: Yeah.
• 33:19
  SPEAKER_01: And so we're helping them just take the same house and convert that house from a rent house to seller financing it, right?
• 33:26
  SPEAKER_01: And we're showing them how to do that.
• 33:29
  SPEAKER_01: That's something that we think is super, super profitable.
• 33:32
  SPEAKER_01: Now let's just say that you're a young Eddie Speed and you're 20 years old.
• 33:36
  SPEAKER_01: Okay.
• 33:36
  SPEAKER_01: You don't have a bunch of money.
• 33:38
  SPEAKER_01: You and Tiffany, I don't have a bunch of equity tied up in these rent houses.
• 33:42
  SPEAKER_01: I'm just saying, how do I get started?
• 33:44
  SPEAKER_01: Well, then there's a there's a spot for a young Eddie Speed.
• 33:47
  SPEAKER_01: So I teach people how to go find a Josh and Tiffany and then bring them to the table.
• 33:53
  SPEAKER_01: We'll still do the done for you stuff.
• 33:55
  SPEAKER_01: So a lot of the work behind the scenes that needs to happen, we've kind of got that machine built to do that.
• 34:00
  SPEAKER_01: But we still have a need for somebody to help help find more customers, help kind of nurture them down a path.
• 34:06
  SPEAKER_01: Nice, show them how to do it.
• 34:07
  SPEAKER_01: And so there's a way to make fee income, even if you don't own a bunch of rentals.
• 34:11
  SPEAKER_01: Right.
• 34:11
  SPEAKER_01: Or if even if if you're not fixing flipping, or maybe you just add this to your fix and flip business.
• 34:16
  SPEAKER_01: Right.
• 34:17
  unknown: Right.
• 34:17
  SPEAKER_01: Kind of like what we've done.
• 34:18
  SPEAKER_02: We've bolted that on.
• 34:19
  SPEAKER_03: Yeah.
• 34:19
  SPEAKER_03: Yeah.
• 34:20
  SPEAKER_02: Awesome, man.
• 34:20
  SPEAKER_02: So, what's one piece of advice that you would share?
• 34:23
  SPEAKER_02: I ask every every guest on the podcast this question.
• 34:25
  SPEAKER_02: And obviously, you've, as you've mentioned, you've got a lot of experience.
• 34:28
  SPEAKER_02: And I'm really curious to see what you have to say for everyone on here.
• 34:32
  SPEAKER_01: Best advice for a business owner.
• 34:33
  SPEAKER_02: Yep.
• 34:34
  SPEAKER_01: Keep your accounting straight.
• 34:36
  SPEAKER_01: Okay.
• 34:36
  SPEAKER_01: Guarantee you.
• 34:37
  SPEAKER_01: Why?
• 34:38
  SPEAKER_01: I love the answer because I've lost way more money from accounting issues than I ever have from making bad deals on real estate or notes.
• 34:47
  SPEAKER_02: Okay.
• 34:47
  SPEAKER_02: And I would imagine our accounting is very tight, largely because we believe in the power of KPIs.
• 34:53
  SPEAKER_02: And I think that's that's kind of where you're, if you don't know your cost per lead, or if your cost per lead is off, or your cost per contract and your projected ROI and your actual ROI is not calculated properly, you're going to make bad business decisions.
• 35:02
  SPEAKER_02: And I think that's kind of what you're talking about.
• 35:04
  SPEAKER_01: What happens to entrepreneurs is that we become very passionate about the trade.
• 35:11
  SPEAKER_01: Do you believe I'm passionate about buying?
• 35:13
  SPEAKER_01: You can bet your boots on that, right?
• 35:15
  SPEAKER_01: Or I or you and Tiffany are passionate about what you're doing.
• 35:18
  SPEAKER_01: Like we are so passionate about it, we forget just the running the business beside it that has to happen.
• 35:26
  SPEAKER_01: And part of that is that we tend to have slippage in our accounting, or we have the wrong person doing our accounting.
• 35:36
  SPEAKER_01: And all of a sudden we wake up and we're in a financial situation.
• 35:40
  SPEAKER_01: We didn't think about all of a sudden we get surprised.
• 35:43
  SPEAKER_01: I've experienced it in my businesses over the years.
• 35:46
  SPEAKER_01: Oh, yeah.
• 35:46
  SPEAKER_01: I've experienced it with a lot of my clients.
• 35:49
  SPEAKER_01: And what I would say to a person that's going to go out and do this, whether you've been in for six days, six years, or 16 years, get your accounting squared away because that is what gives you the ultimate freedom.
• 36:06
  SPEAKER_01: If you don't really have the money you think you have, then you don't have that freedom that you keep talking about, right?
• 36:12
  SPEAKER_01: I love it.
• 36:13
  SPEAKER_02: Wise words from a wise man.
• 36:14
  SPEAKER_02: Eddie, I appreciate you being on the show here today.
• 36:16
  SPEAKER_02: Yes.
• 36:17
  SPEAKER_02: And uh that's a wrap, everyone.
• 36:18
  SPEAKER_02: Tune in on the next podcast.
• 36:20
  SPEAKER_02: Looking forward to seeing you guys there.
• 36:21
  SPEAKER_00: If this hits home and you know you need to go deeper, I want you to download the free resource that I recently just built.
• 36:28
  SPEAKER_00: It's at www.rdebook.com.
• 36:31
  SPEAKER_00: Again, that's www.rdebook.com.
• 36:35
  SPEAKER_00: It's called 26 Mistakes I Made as a Real Estate Investor.
• 36:39
  SPEAKER_00: You'll get the playbooks, the stories, and the breakdowns so that you can shortcut all the mistakes I made while building this multiple seven-figure real estate business and start doing deals way smarter than I ever did sooner and faster.
• 36:51
  SPEAKER_00: And hey, if you got value today, it would mean a lot to me.
• 36:54
  SPEAKER_00: Actually, it would mean the world to me.
• 36:56
  SPEAKER_00: If you left a five-star review on Apple or Spotify and left me a review, and share with a friend who you think is stuck doing it all themselves right now.
• 37:06
  SPEAKER_00: Because one shift in strategy could be worth six figures or more.
• 37:11
  SPEAKER_00: Talk soon and see you on the next episode.
• 37:14
  SPEAKER_00: This episode has come to an end, but your journey continues.
• 37:18
  SPEAKER_00: Subscribe to the podcast so you never miss an episode.
• 37:22
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• 37:28
  SPEAKER_00: That's the results driven podcast.com.
• 37:31
  SPEAKER_00: We'll see you next time on the results driven podcast.
• 37:34
  SPEAKER_02: We'll see you next time on the results driven podcast.