Latest / Massive Agent Podcast / How Agents Can Build a Rental Portfolio This Year w/ Cody Sperber

Transcript

How Agents Can Build a Rental Portfolio This Year w/ Cody Sperber · Massive Agent Podcast

• 0:00
  SPEAKER_00: On this episode, we're talking with the clever investor, Cody Sperber, one of the biggest real estate investment names in the game, about how you as an agent can start to acquire an extra two homes a month to start building your own rental portfolio.
• 0:14
  SPEAKER_00: Now, this interview is absolutely incredible.
• 0:17
  SPEAKER_00: Make sure you stay to the end.
• 0:18
  SPEAKER_00: The beginning is very tactical, and the end, this shit gets very, very real.
• 0:23
  SPEAKER_00: This is an episode you're gonna want to hear multiple times.
• 0:26
  SPEAKER_00: Let's go.
• 0:28
  SPEAKER_02: The Massive Agent Podcast with lead generation tips and strategies to get you more leads and sell more homes.
• 0:36
  SPEAKER_01: I love to buy houses, I like to sell houses.
• 0:38
  SPEAKER_02: It takes brass balls to sell it.
• 0:41
  SPEAKER_01: Wait a minute.
• 0:43
  SPEAKER_02: Leads a week.
• 0:45
  SPEAKER_02: I've had better.
• 0:47
  SPEAKER_02: Oh have I got your attention now?
• 0:50
  SPEAKER_02: Here's your host, Dustin Brome.
• 0:54
  SPEAKER_00: What is up, guys?
• 0:55
  SPEAKER_00: Welcome to episode 283 of the Massive Agent Podcast.
• 0:59
  SPEAKER_00: I am your host, Dustin Brome, here in Salt Lake City, Utah, and I am fired the fuck up because today's episode is with someone who I look up to uh as many of you do as well, Cody Sperber, also known as Clever Investor.
• 1:12
  SPEAKER_00: If you follow him on Instagram or YouTube, you've probably seen his ads back in the day where he has his Green Lamborghini rolling slowly down the street.
• 1:21
  SPEAKER_00: He has his checks that he's depositing at Chase because he's wholesaling some deals.
• 1:26
  SPEAKER_00: You've I'm guarantee you've seen this guy before.
• 1:28
  SPEAKER_00: But he has built a massive business.
• 1:30
  SPEAKER_00: He's flipped thousands of homes, he's built a portfolio of thousands of units, and he's cash flowing a ridiculous amount, multiple six figures every single month from his real estate, not to mention the education company and all the other businesses that he's involved in.
• 1:48
  SPEAKER_00: This guy's an absolute machine.
• 1:50
  SPEAKER_00: But what you're gonna hear the last 20 minutes or so of the episode takes it to a whole other level, and you're gonna see why I respect him even more, and it has nothing to do with business, yet it has everything to do with business.
• 2:02
  SPEAKER_00: You'll see.
• 2:03
  SPEAKER_00: But first, this the the reason that I wanted to get Cody on the show, um, and luckily I've got to know him a little bit through the Avengers Mastermind that uh he's a founder of and I'm a member of, and I've I've been with them for about a couple years now.
• 2:18
  SPEAKER_00: Um I've gotten to know him personally, and uh more than just what you see on Instagram, more than just what you see on YouTube, he he walks the walk, he talks the talk, and he really cares about teaching people.
• 2:31
  SPEAKER_00: And I approached him at one of our last masterminds, and I'm like, look, I'm an agent, my audience is agents.
• 2:39
  SPEAKER_00: How do we get into the real estate investment game when we're talking with property owners all day long?
• 2:43
  SPEAKER_00: Because most of us just aren't doing it.
• 2:45
  SPEAKER_00: And he's like, you know what, we need to get on a podcast and I'll break it down.
• 2:49
  SPEAKER_00: And that's exactly what he does today.
• 2:51
  SPEAKER_00: If you're an agent that has any desire to start building your own portfolio of rental properties, maybe you want to start flipping, maybe you just want to start wholesaling for some extra cash.
• 3:00
  SPEAKER_00: Maybe you don't know what any of that means, but you know that real estate investment is something you need to start paying attention to.
• 3:06
  SPEAKER_00: Well, spoiler alert, it is something you need to start paying attention to.
• 3:10
  SPEAKER_00: I'm gonna tell my story about how I fucked up and you know, my first decade in this industry, I was so tunnel vision and didn't pay attention or didn't actively reach out and start building my own portfolio.
• 3:24
  SPEAKER_00: I didn't participate in it in the investment side because I was so focused on just buyers and sellers all the time, and I don't even want to know how many millions of dollars passed through my fingers and I didn't even realize it.
• 3:35
  SPEAKER_00: And I guarantee the same could be said for you as well.
• 3:39
  SPEAKER_00: So this is an episode this episode today will change that.
• 3:43
  SPEAKER_00: You're gonna finally leave this episode, you're gonna finish this knowing what to do next.
• 3:49
  SPEAKER_00: You're gonna know where to focus, what you need to learn, and then what's possible.
• 3:54
  SPEAKER_00: You may get overwhelmed at times, like most agents, where you're like, I know I need to start investing, I need to do this for myself, but I don't know where to start.
• 4:03
  SPEAKER_00: This will point you in the right direction, but you're gonna also see what's possible.
• 4:07
  SPEAKER_00: You're going to see where to start, where to focus, and what you can do, because there's so much you can do in the world of creative finance that you may not even know is possible.
• 4:16
  SPEAKER_00: Most agents don't.
• 4:18
  SPEAKER_00: And so Cody's here to set the record straight and explain and educate to open your eyes as to what's possible.
• 4:25
  SPEAKER_00: This is one of my favorite episodes we've ever done.
• 4:28
  SPEAKER_00: Episode 283, this is one of my favorites, and the last 20 minutes is fricking heavy.
• 4:33
  SPEAKER_00: That's all I'm gonna say.
• 4:35
  SPEAKER_00: So pay attention if you well, just pay attention.
• 4:40
  SPEAKER_00: Uh this is good.
• 4:41
  SPEAKER_00: Before we jump into our talk with Cody, um, if you guys follow, you guys know that that this podcast is part of BAM, and uh I contribute to their walkthrough show every once in a while.
• 4:54
  SPEAKER_00: I'm gonna be a guest on this week as well on uh on their podcast, The Walkthrough.
• 4:59
  SPEAKER_00: And BAM is building a true media company that uh really serves agents.
• 5:05
  SPEAKER_00: It's built for agents, it's built by agents, and it's built um you know with agents in mind.
• 5:12
  SPEAKER_00: But what most media companies do is they say, here's what you should do.
• 5:15
  SPEAKER_00: You should do all these things, here's a bunch of different things.
• 5:18
  SPEAKER_00: But we realize sometimes you just need step-by-step know-how.
• 5:22
  SPEAKER_00: So BAM just launched something called BAMX, and you can check out BAMX over at uh Massive Agent Podcast.com slash BAMX B A M X.
• 5:33
  SPEAKER_00: So BAMX is a new platform built within the BAM ecosystem where you're not just gonna hear what to do, but we're gonna show you how to do it.
• 5:44
  SPEAKER_00: There's a bunch of mini courses within the BAMX platform, courses like Can uh Canva 101 with Haley Ingram from Coffee and Contracts.
• 5:53
  SPEAKER_00: She's one of the best in the game with Canva.
• 5:55
  SPEAKER_00: If you guys use Canva, I use Canva, I love it.
• 5:58
  SPEAKER_00: Uh Objection Handling course with Tom Tool, he's one of the best in the game.
• 6:02
  SPEAKER_00: There's a little mini course on how to create great green screen videos, and the ultimate Instagram course from none other than the broke agent himself.
• 6:12
  SPEAKER_00: I don't know anyone better at Instagram and more of an Instagram master within our industry than the broke agent.
• 6:17
  SPEAKER_00: And coming soon, a couple courses from me as well that are in production.
• 6:23
  SPEAKER_00: So go over to MassiveAgent Podcast.com slash BAMX and check that out.
• 6:28
  SPEAKER_00: And you can use code MASSIVE to get 10% off the whole year.
• 6:32
  SPEAKER_00: All of this, all this education, and there's more being added all the time for as little as ten dollars a month.
• 6:39
  SPEAKER_00: Ridiculous.
• 6:40
  SPEAKER_00: So go take advantage, use code MASSIVE to get an extra 10% off the whole year, and uh it it's cool as shit.
• 6:48
  SPEAKER_00: It it really is.
• 6:49
  SPEAKER_00: So go check it out.
• 6:51
  SPEAKER_00: Uh, and lastly, I'm we're what two weeks away?
• 6:54
  SPEAKER_00: What is this?
• 6:55
  SPEAKER_00: We're we're about two weeks away from our very first power day here in Salt Lake.
• 6:59
  SPEAKER_00: We have 11 spots available, and you know, for the first time ever, we're getting together in a small, intimate, in-person workshop setting.
• 7:08
  SPEAKER_00: Okay, it's a it's an in-person workshop.
• 7:10
  SPEAKER_00: You and me working on your business, implementing.
• 7:14
  SPEAKER_00: We're gonna have a big pre-event networking dinner here at my house.
• 7:18
  SPEAKER_00: Uh, it's gonna be catered, it's gonna be fancy, it's gonna be awesome.
• 7:21
  SPEAKER_00: Um, small group, so it's gonna be very impactful.
• 7:24
  SPEAKER_00: Uh, and due to the nature of this, we're keeping it small.
• 7:28
  SPEAKER_00: So very small.
• 7:29
  SPEAKER_00: Only 20 spots total, 11 are still available.
• 7:33
  SPEAKER_00: Look, I want you to be there.
• 7:34
  SPEAKER_00: I want you to be at Power Day next month in Salt Lake City.
• 7:38
  SPEAKER_00: So I'm going to extend the 50% off discount because I want to make this as reasonable and as attainable for you as well.
• 7:45
  SPEAKER_00: And I know June's a busy month.
• 7:46
  SPEAKER_00: So to get that 50% off discount, go to powerdayevent.com and use the code not over yet 50.
• 7:55
  SPEAKER_00: Okay, not over yet 50, and you'll get a thousand dollars off your ticket to Power Day.
• 8:00
  SPEAKER_00: But like I said, there's only 11 spots available as of the time of recording.
• 8:05
  SPEAKER_00: So uh hop on that.
• 8:07
  SPEAKER_00: And uh I hope you're ready because this talk with Cody Sperber is absolutely next level.
• 8:14
  SPEAKER_00: Um, you're gonna take notes and you're gonna take notes on the things that you're you're gonna be like, okay, what does that mean?
• 8:20
  SPEAKER_00: Write that shit down because there's some concepts here that if you're new to the real estate investment world, you may not understand yet.
• 8:28
  SPEAKER_00: I promise you, even if you don't plan on getting into investment, the knowing this stuff and knowing how to service and help investors who are savvy enough with creative finance, this will make you a better agent.
• 8:40
  SPEAKER_00: You will sell many more homes, you will help many more homeowners because you'll have many more tools in your tool belt and you'll know how you can structure things to meet their needs.
• 8:49
  SPEAKER_00: Because let's be honest, most agents show up at a listing presentation or whatever, whatever you want to call it, and you really have one, maybe two options for them.
• 8:58
  SPEAKER_00: What most of you do is you show up and say, option one, I'll list your house.
• 9:03
  SPEAKER_00: That's it, that's the only option.
• 9:05
  SPEAKER_00: Okay, and you can make a decent living.
• 9:07
  SPEAKER_00: But what if you were able to offer them other options?
• 9:10
  SPEAKER_00: Some of you show up and say, I'll list it, or I'll buy it.
• 9:14
  SPEAKER_00: Fantastic.
• 9:16
  SPEAKER_00: There are more options available, but that's what we're gonna talk about.
• 9:19
  SPEAKER_00: So write this stuff down.
• 9:20
  SPEAKER_00: If you don't know what something means, write it down because you need to look into this.
• 9:25
  SPEAKER_00: And we're gonna be focusing a lot more on this type of content moving forward.
• 9:28
  SPEAKER_00: Uh, this is not becoming a real estate investment show.
• 9:31
  SPEAKER_00: The whole goal here is to help you, a real estate agent, to make more money and to service more homeowners.
• 9:39
  SPEAKER_00: Simple as that.
• 9:40
  SPEAKER_00: Make more money, sell more houses, be more profitable, be more well-rounded, all of it.
• 9:45
  SPEAKER_00: That's the goal of the show.
• 9:47
  SPEAKER_00: So, this is all with that in mind.
• 9:49
  SPEAKER_00: Buckle up, great episode with Cody Sperber, the clever investor, right now.
• 9:53
  SPEAKER_00: What's up, guys?
• 9:54
  SPEAKER_00: Welcome back to the podcast.
• 9:55
  SPEAKER_00: I'm here with Cody Sperber, the clever investor.
• 9:58
  SPEAKER_00: So stoked for this interview because uh Cody's somebody that I've respected for a long time.
• 10:03
  SPEAKER_00: Uh, before we got to know each other through the Avengers mastermind, I saw his his ads, his Green Lamborghini, his checks in front of Chase, uh, like the rest of us.
• 10:13
  SPEAKER_00: And, you know, he's someone that I kept an eye on.
• 10:15
  SPEAKER_00: And um, you know, recently I've gotten to know him a little bit more as a person.
• 10:20
  SPEAKER_00: And what I'm really excited about is he is he is the deepest in the game of real estate investment.
• 10:28
  SPEAKER_00: And for him to bring his perspective to us as real estate agents, I think is key because agents are just not taking advantage of all the opportunity that comes across our face every single day, which also means we're underserving those property owners.
• 10:42
  SPEAKER_00: And so I think this is gonna be a great conversation.
• 10:44
  SPEAKER_00: Cody Sperber, welcome to the Massive Agent Podcast.
• 10:46
  SPEAKER_00: How's it going?
• 10:47
  SPEAKER_01: Yes, thanks for having me on, Dustin.
• 10:49
  SPEAKER_01: Excited to be here.
• 10:50
  SPEAKER_01: And yes, we want agents to think bigger.
• 10:53
  SPEAKER_01: We want agents to become real estate experts, not just real estate agents.
• 10:58
  SPEAKER_00: And most claim to be real estate experts, and then uh they don't have a clue how seller financing works.
• 11:04
  SPEAKER_00: They've never heard the term subject to, they have no idea any of that.
• 11:08
  SPEAKER_00: Uh, I didn't when I was, you know, when I was coming up in the industry, I had no idea.
• 11:13
  SPEAKER_00: So um you work with a lot of agents on on the deals that you that you do, right?
• 11:19
  SPEAKER_01: Oh, yeah, all the time.
• 11:20
  SPEAKER_01: Yeah, agents are one of our best sources for deal flow.
• 11:23
  SPEAKER_01: Obviously, look, who's on the front lines every single day?
• 11:27
  SPEAKER_01: Who lives, eats, breathes, sleeps real estate all day, every day.
• 11:31
  SPEAKER_01: I mean, this is how they get paid, this is their livelihood, this is their profession.
• 11:34
  SPEAKER_01: And uh for us investors, you know, if we are not working those agent relationships, which is tough, by the way, because investors waste a lot of agents' times.
• 11:45
  SPEAKER_01: And they don't, if you're not a good investor, you all you do is go around and piss off a bunch of agents.
• 11:51
  SPEAKER_01: So it's like you really got to be a good investor so you know how to work with great agents, and great agents should see the value in working with a good investor because it's gonna elevate their consistency because we do more than one deal every five or seven years.
• 12:06
  SPEAKER_01: We are uh, if you're a creative real estate investor, we're coming up with all kinds of ways to take maybe a dead deal or a non-deal and turn it into money, uh, which is kind of where the creative finance comes into play.
• 12:20
  SPEAKER_01: And that's what I meant by becoming a real estate expert.
• 12:23
  SPEAKER_01: Agents need to learn the language of creative real estate investing.
• 12:27
  SPEAKER_01: They need to understand, first off, every agent, what is your game plan for getting out of the game?
• 12:32
  SPEAKER_01: Yeah, most of us don't start with the end in mind and work backwards.
• 12:37
  SPEAKER_01: Right?
• 12:38
  SPEAKER_01: Like, if I ask you, like, how do we retire, man?
• 12:41
  SPEAKER_01: How do we, what's the end game for you?
• 12:43
  SPEAKER_01: Are you gonna do this for are you gonna be a 65-year-old listing agent?
• 12:47
  SPEAKER_00: Right.
• 12:48
  SPEAKER_01: Are you you know, like where do you want to to get off this ride?
• 12:52
  SPEAKER_01: And it's one of the first things I ask all my investor students and agents that come to me.
• 12:57
  SPEAKER_01: I just say, look, dude, if you had to play full out for X amount of years, what when does it end for you?
• 13:02
  SPEAKER_01: Is it a dollar amount?
• 13:04
  SPEAKER_01: Is it a cash flow amount?
• 13:06
  SPEAKER_01: Is it uh sell your business in one big payday moment?
• 13:10
  SPEAKER_01: Like, what does it look like, your future look like for you?
• 13:13
  SPEAKER_01: And everybody's got a different outlook on how they want to get off the thing, but most of them never start there and then engineer it backwards and go, okay, if I want to make 50k a month consistently while I get to live my dream life and sit mojitos on the beach or whatever you're into, how do you get there?
• 13:31
  SPEAKER_01: You can't get there if you're only commission-minded.
• 13:34
  SPEAKER_00: Correct.
• 13:34
  SPEAKER_00: Yes.
• 13:35
  SPEAKER_00: Okay, so much to unpack here.
• 13:37
  SPEAKER_00: This is fantastic, great way to set the table for this.
• 13:40
  SPEAKER_00: Let's go back to something you said earlier about bad investors piss agents off and vice versa, right?
• 13:47
  SPEAKER_00: So, for the first six, seven years that I was an agent, and I've been one for about 11, I haven't sold a house in a few years on purpose, you know, because I've transitioned to building a different business, still in the space, but you know, I I asked myself that question when does this end if I don't start to build a business, right?
• 14:06
  SPEAKER_00: And then I realized, oh, I need to make some changes.
• 14:09
  SPEAKER_00: But for the for while I was personally selling and everything was on my shoulders, I remember getting a call numerous times from an investor that obviously just came out of a weekend seminar, and they're like, hey, I'm looking for houses at 70% ARV and blah, blah, blah.
• 14:25
  SPEAKER_00: And they name off a couple things.
• 14:26
  SPEAKER_00: And I remember I was golfing one time, horribly, by the way.
• 14:30
  SPEAKER_00: And uh, but I remember taking this call and I was just in a mood where I didn't want to talk.
• 14:35
  SPEAKER_00: And I'm like, if I found a house like that, why the fuck would I tell you about it?
• 14:39
  SPEAKER_00: Why wouldn't I buy it myself?
• 14:41
  SPEAKER_00: Right?
• 14:42
  SPEAKER_00: And and if since that moment, I kind of closed the door to investors as a whole unfairly, because I just lumped them all together.
• 14:51
  SPEAKER_00: And I know that that's happening with investors and agents as well, right?
• 14:55
  SPEAKER_00: All the time.
• 14:56
  SPEAKER_00: Yeah, all the time.
• 14:57
  SPEAKER_01: That's because we don't leave, you gotta you gotta lead with value.
• 14:59
  SPEAKER_01: If I'm just asking something from you, comp properties for me, bring me deals, right?
• 15:05
  SPEAKER_01: It's like in that's just novice stuff, and I'm not leading with value.
• 15:09
  SPEAKER_01: I need to be thinking about all the creative ways that I can show up for you and and do the one thing that you care most about, and that's put money in your pocket.
• 15:18
  SPEAKER_01: And once we start breaking a little bread together, then you're gonna open up and be like, okay, I'll comp properties for you, or I'll I'll give you market insights, or I'll bring off market or pocket listing deals your way first and let you kind of throw in an offer ahead of time.
• 15:31
  SPEAKER_01: But I gotta show up first.
• 15:33
  SPEAKER_01: And that's what we train our investors, and it is a shame because there's a lot of investors that piss off agents, then they shut the door.
• 15:40
  SPEAKER_01: Uh on the flip side, let's say you're an agent in today's market, interest rates are now seven, eight, potentially nine, 10%.
• 15:48
  SPEAKER_01: The market has slowed down, your business is going to crap.
• 15:52
  SPEAKER_01: It's not like the good old days where anybody who who got their license made, you know, 100K a year or more.
• 15:58
  SPEAKER_01: You got to really be good and you got to work.
• 16:01
  SPEAKER_01: Well, what if I showed up as a creative real estate investor and I said, Dustin, listen, you're missing out on so much money.
• 16:07
  SPEAKER_01: Let me teach you how to go in and make these creative terms offers because you're the people that want to get a full price offer, they're stuck on price.
• 16:16
  SPEAKER_01: But if I can show up and say, listen, it makes no sense for me as a buyer to come and buy your house and trade a uh, like let's say the homeowner has a 4% mortgage, it doesn't make any sense for me to buy a house and trade a 4% mortgage with an 8% mortgage.
• 16:34
  SPEAKER_01: That house becomes unaffordable to me, especially as an investor.
• 16:37
  SPEAKER_01: I can't cash flow it anymore.
• 16:39
  SPEAKER_01: But if I can work with the agent who has trust in me because I'm an expert in creative finance and I teach the agent how the language of creative finance works, and now together we go to the seller and pitch them on this concept of selling me the house with their loan in place, which is called a subject to transaction or a wraparound mortgage.
• 17:00
  SPEAKER_01: Now there's a way to get a deal done where it potentially wouldn't have happened because they are stuck on price and nobody's offering them that that top dollar.
• 17:09
  SPEAKER_01: And in some cases, I can overpay for a property.
• 17:12
  SPEAKER_01: So you look like a badass as an agent rolling up with a guy like me that says, Hey, I know you want$350 for your property.
• 17:17
  SPEAKER_01: I got a guy that'll pay you$375 right now.
• 17:20
  SPEAKER_01: And they're like, What?
• 17:21
  SPEAKER_01: And it's like, listen, it's good, you just got to be a little open-minded.
• 17:24
  SPEAKER_01: Just listen to his presentation.
• 17:26
  SPEAKER_01: And if it resonates with you, we can figure out how to put it together.
• 17:29
  SPEAKER_01: If it doesn't, no big deal.
• 17:30
  SPEAKER_01: I'm just trying to get you the most for your property.
• 17:33
  SPEAKER_01: Now all of a sudden the agent looks like a superstar.
• 17:36
  SPEAKER_01: They understand what we're doing.
• 17:37
  SPEAKER_01: We could still work out and pay the agent a commission or even cut them in on the deal.
• 17:42
  SPEAKER_01: Uh, and on ownership side of things, there's a lot of ways I work with agents that bring me deals.
• 17:47
  SPEAKER_01: And uh it's it works in a market that's really tough, like it is right now.
• 17:51
  SPEAKER_01: Just think about this, Dustin.
• 17:53
  SPEAKER_01: If I buy a house at a 7 or 8% mortgage for 350 grand with an 8% mortgage over 30 years, am I really paying 350 grand for that house?
• 18:03
  SPEAKER_00: Oh, hell no.
• 18:04
  SPEAKER_01: I'm paying like three times the amount.
• 18:06
  SPEAKER_01: I'm probably paying like 950 grand for that same house because of the interest payments.
• 18:11
  SPEAKER_01: Yes.
• 18:11
  SPEAKER_01: Why pay the bank the extra 600K?
• 18:15
  SPEAKER_01: Why not just go to the homeowner and say, I'll pay an extra 50K right now?
• 18:19
  SPEAKER_01: Add it onto the price, let's work out our own deal where they're the bank.
• 18:23
  SPEAKER_01: And if I can convince the seller to participate in the financing of the property, even for a period of time, it doesn't have to be forever.
• 18:31
  SPEAKER_01: What if I just say, listen, it doesn't make any sense right now, but if interest rates go below five and a half or five, I'll refinance out of it.
• 18:39
  SPEAKER_01: So let's do a, let's, let's, let me step into your loan for the next 30 years, but we'll balloon it in five, or we'll balloon it in seven.
• 18:47
  SPEAKER_01: Now I stretch my payments over a long period of time, which makes it affordable for me to buy that house, but there's a sunset on it.
• 18:55
  SPEAKER_01: You understand what I'm saying right there?
• 18:56
  SPEAKER_00: Totally.
• 18:57
  SPEAKER_01: Once agents start getting this, um, and it's funny too, because I have a lot of people that come to me, can I bring you on a seller appointment with me?
• 19:05
  SPEAKER_01: And I'm like, Yeah, let's go, dude.
• 19:07
  SPEAKER_01: Let's go.
• 19:07
  SPEAKER_01: Because now they're they're they're positioned.
• 19:10
  SPEAKER_01: Hey, we here's what I could get for a listing.
• 19:12
  SPEAKER_01: Here's what I can get for an all-cash offer.
• 19:14
  SPEAKER_01: Here's what I could get for a creative terms offer.
• 19:17
  SPEAKER_01: Which of these three works best for you, Mr.
• 19:19
  SPEAKER_01: or Mrs.
• 19:19
  SPEAKER_01: Seller?
• 19:20
  SPEAKER_00: And that's such a better value that you as an agent can bring to the property owner versus just option A, I'll list your house.
• 19:27
  SPEAKER_00: That's what 98% of agents do.
• 19:29
  SPEAKER_00: They show up and they're like, I only have one option for you, I'll list your house.
• 19:33
  SPEAKER_00: Some are like, hey, I'll buy it also, but then that's it.
• 19:38
  SPEAKER_00: Right?
• 19:38
  SPEAKER_00: So I love what you're talking about here.
• 19:41
  SPEAKER_00: I know because I am an agent and I've spoken with many.
• 19:45
  SPEAKER_00: So I I actually bought my first house, um, seller finance.
• 19:49
  SPEAKER_00: It was a trust for deed type of uh seller finance, and it was great, but we had to find the right seller and an agent who was willing to you know discuss what it looked like.
• 19:59
  SPEAKER_00: But that was such a great, great thing for the seller and for us because they couldn't sell it, and they ended up getting 10k more than what they were asking, anyways.
• 20:07
  SPEAKER_00: But um what I found when I was trying to buy a house for myself as an agent with seller finance, I kept running into agents saying, How do I get paid?
• 20:18
  SPEAKER_00: How do the agent how does the agent get paid?
• 20:20
  SPEAKER_00: was such a hang up for nine out of ten.
• 20:23
  SPEAKER_00: So can you walk through how you get agents paid when they participate on some of these creative deals with you?
• 20:29
  SPEAKER_01: Yeah, I mean, sometimes I just pay their commissions.
• 20:31
  SPEAKER_01: I just what do you want?
• 20:32
  SPEAKER_01: If you bring me to if you bring the deal to me, what do you want?
• 20:35
  SPEAKER_01: I want$7,500.
• 20:37
  SPEAKER_01: Done.
• 20:38
  SPEAKER_01: Right?
• 20:39
  SPEAKER_01: I'll overpay for the house and cut a check for the agent.
• 20:42
  SPEAKER_01: Look, you got to understand why I do what I do.
• 20:44
  SPEAKER_01: I I'm I'm buying cash flow streams.
• 20:47
  SPEAKER_01: I'm buying my retirement plan, right?
• 20:50
  SPEAKER_01: I wholesale real estate to make cash now, but I own real estate to get me out of this business, right?
• 20:57
  SPEAKER_01: I don't want to pay taxes.
• 20:58
  SPEAKER_01: I don't wanna, I don't want to work forever.
• 21:01
  SPEAKER_01: I want to get to a point where maybe in my mind I say, you know, and everybody's different, you know, maybe I say, hey, if I can make 100K a month like clockwork from my assets, I'll never work another day in my life.
• 21:13
  SPEAKER_01: My number's much bigger than that, but let's say that was my number.
• 21:17
  SPEAKER_01: How many houses and Airbnbs and apartment buildings do I need to own to get there?
• 21:22
  SPEAKER_01: It's less than you think.
• 21:24
  SPEAKER_01: I got one apartment building right now that we're we're syndicating on.
• 21:27
  SPEAKER_01: It's a it's a um 438-unit apartment building.
• 21:31
  SPEAKER_01: This is like a$136 million purchase.
• 21:34
  SPEAKER_01: That one purchase will produce well over six figures consistently every single month, like clockwork for the rest of my life, as long as I own it.
• 21:43
  SPEAKER_01: You know, and it's a hundred plus$130 plus million dollar asset.
• 21:47
  SPEAKER_01: And I'm gonna buy it with other people's money.
• 21:49
  SPEAKER_01: Like the sky is the limit on this.
• 21:51
  SPEAKER_01: I started literally with like the crappiest houses that look like they couldn't even be inhabited, and I worked my way up to nice certain.
• 22:00
  SPEAKER_01: Houses, then duplexes, then bigger multifamily, and now I'm in the game trying to buy a 438-unit deal.
• 22:07
  SPEAKER_01: I mean, this is it's crazy to me that agents work 10, 15, 20, 30 years for commissions.
• 22:14
  SPEAKER_00: Right.
• 22:15
  SPEAKER_01: And I'm like, that's the that's how big you think.
• 22:18
  SPEAKER_00: Right.
• 22:18
  SPEAKER_01: Like, you're not even in the freaking real estate game, man.
• 22:20
  SPEAKER_01: I like I want to grab them and shake them and be like, dude, wake up.
• 22:24
  SPEAKER_01: How are you gonna, how are you gonna last year?
• 22:27
  SPEAKER_01: I made one purchase that wiped out$1.2 million worth of taxes for me.
• 22:32
  SPEAKER_01: One building.
• 22:33
  SPEAKER_01: I paid$4.25 million for a commercial building.
• 22:36
  SPEAKER_01: The building, after I put tenants and everything in it, is making about$20,000 a month in pure cash flow.
• 22:43
  SPEAKER_01: And I did what's called a cost segregation study on the building, and I wiped out$1.2,$1.3 million in taxes.
• 22:51
  SPEAKER_01: It's like if I asked you a question, what's more important to you?
• 22:56
  SPEAKER_01: Let's say it's the beginning of the year, and you go, Cody, I want to grow, I want to scale.
• 23:00
  SPEAKER_01: Great, there's two ways we're gonna do that.
• 23:02
  SPEAKER_01: We either double the amount of revenue we bring in the door, or we just pay no taxes.
• 23:07
  SPEAKER_01: Both of them get you to the same spot.
• 23:10
  SPEAKER_01: One, it requires you to work really hard to scale your business and double your revenue, and one is one power move with one good piece of real estate with a coseg study, and boom, you're done.
• 23:22
  SPEAKER_00: Agents don't know this.
• 23:24
  SPEAKER_00: Agents do not know this.
• 23:25
  SPEAKER_00: And uh something you mentioned a second ago, in full transparency, I got into real estate, or I got my license because my parents and I went to a rich dad education weekend seminar deal, ended up spending 40 grand on the education package.
• 23:40
  SPEAKER_00: It was great stuff, but we never freaking did anything with it.
• 23:43
  SPEAKER_00: Uh like most, right?
• 23:45
  SPEAKER_00: Um but we did buy a short sale back in 2010.
• 23:49
  SPEAKER_00: It's like a hundred and 111 grand in Salt Lake City.
• 23:53
  SPEAKER_00: Like now the house is like 500.
• 23:56
  SPEAKER_00: But um we got this short sale, we were relying on another agent to value the property ARV after repairs, and he was off by about 15 grand.
• 24:05
  SPEAKER_00: And that was our whole profit margin.
• 24:07
  SPEAKER_00: So, like, we're like, well, fuck, we can't sell this now.
• 24:09
  SPEAKER_00: We ended up holding it as a rental, we were cash flowing about 600 a month from one unit, which was amazing.
• 24:15
  SPEAKER_00: Uh, so that was a blessing in disguise, but it got me into real estate, and um why the fuck did I bring that up in the first place?
• 24:22
  SPEAKER_00: Oh taxes saving it but that was the first that was the last real estate investment that I did for myself outside of a primary residence.
• 24:30
  SPEAKER_00: This is why I joined Avengers Mastermind recently, because ten years later, I'm I'm like, this is ridiculous.
• 24:37
  SPEAKER_00: I've spent the last decade talking with property owners all day long.
• 24:42
  SPEAKER_00: I wholesaled a couple, I referred a couple out to my broker who was uh who would buy them, but I didn't have shit.
• 24:50
  SPEAKER_00: And I know that this is this is not just me, this is the majority of our industry.
• 24:54
  SPEAKER_00: So what you're saying right now is so great to open eyes, and the whole tax saving things is brilliant, but I think it overwhelms people too.
• 25:07
  SPEAKER_00: They think that they have to get started with an apartment building.
• 25:10
  SPEAKER_01: No, screw that.
• 25:10
  SPEAKER_01: Let's keep it simple.
• 25:11
  SPEAKER_01: Think about this every seller you talk to is gonna fall into one of three buckets.
• 25:15
  SPEAKER_01: That's it.
• 25:16
  SPEAKER_01: One of three buckets.
• 25:17
  SPEAKER_01: They're either gonna own their house free and clear, they're gonna own their house with a mortgage but have little to no equity, or they're gonna own their house with a mortgage and have a ton of equity.
• 25:26
  SPEAKER_01: There are different investing strategies based on which bucket they're in.
• 25:30
  SPEAKER_01: If it's free and clear, and by the way, that's the best place to start if you're trying to learn creative finance.
• 25:35
  SPEAKER_01: Get out a mortgage calculator, right?
• 25:38
  SPEAKER_01: I like usmortgage calculator.org.
• 25:41
  SPEAKER_01: It's my favorite little one.
• 25:42
  SPEAKER_01: It's free.
• 25:43
  SPEAKER_01: You just go online.
• 25:44
  SPEAKER_01: And when you when you start playing with the mortgage calculator, you realize there's only a couple levers to pull, right?
• 25:51
  SPEAKER_01: It's like, what are you paying for the property?
• 25:52
  SPEAKER_01: That's always the number one thing everybody negotiates price, right?
• 25:56
  SPEAKER_01: Well, if there's a seller stuck on price and they own it free and clear, and they're a savvy, savvy person, they're the best people to work with because then I can roll in and say, I'll give you price.
• 26:07
  SPEAKER_01: Like, we don't even got to negotiate the one thing that you care the most about.
• 26:10
  SPEAKER_01: In fact, I'll even pay you more if you want.
• 26:12
  SPEAKER_01: Like, I don't care about price because I'm gonna pull the other levers.
• 26:17
  SPEAKER_01: Down payment.
• 26:19
  SPEAKER_01: Obviously, I want to pay little to nothing down.
• 26:23
  SPEAKER_01: Interest rate.
• 26:24
  SPEAKER_01: Obviously, I want to pay no interest rate and make principal only payments.
• 26:29
  SPEAKER_01: And length of loan.
• 26:31
  SPEAKER_01: I want to stretch my loan out as far as possible so that way my payments come down as low as possible, which increases my cash flow.
• 26:40
  SPEAKER_01: Once I understood that, I'm like, okay, let's start with just targeting free and clear homeowners.
• 26:47
  SPEAKER_01: And let me practice talking to them about them being my bank.
• 26:51
  SPEAKER_01: Hey, what if instead of listing your property because it needs work or whatever and getting beat up on and negotiating, what if I just buy it for full price?
• 27:02
  SPEAKER_01: And I'll pay you your price, and I'll but I'll make you equal monthly payments spread over 30 years until paid off.
• 27:12
  SPEAKER_01: How's that sound?
• 27:15
  SPEAKER_01: By me saying it that way, essentially what I just said is I'm gonna pay nothing down.
• 27:19
  SPEAKER_01: I'm just gonna make you equal monthly payments, which means no interest rate, principal only payments, spread over 30 years until we're paid off.
• 27:27
  SPEAKER_01: It's like a payment plan.
• 27:28
  SPEAKER_01: But I'll pay you full price.
• 27:30
  SPEAKER_01: And if the seller comes back and says, no, no, no, no, well, what interest rate are you paying me?
• 27:34
  SPEAKER_01: Or how much are you putting down?
• 27:36
  SPEAKER_01: Oh, I didn't know you wanted anything down.
• 27:38
  SPEAKER_01: I thought you were really wanting me to pay full price.
• 27:41
  SPEAKER_01: I'm not be I'm not gonna negotiate on price at all, which is why I hope that you'll work with me on the other things.
• 27:47
  SPEAKER_01: Well, I want some skin in the game.
• 27:49
  SPEAKER_01: Okay, well, how much do you want?
• 27:52
  SPEAKER_01: Well, I don't know.
• 27:53
  SPEAKER_01: I want 15 grand down.
• 27:55
  SPEAKER_01: Okay, so you're saying if I gave you 15 grand down, you would do this deal with me?
• 28:00
  SPEAKER_01: Yeah.
• 28:00
  SPEAKER_01: Well, what if instead of me paying you 15 grand down right now, what if I just increased my purchase price by say 25 grand, which is 10 more than what you're asking me for, and we'll go back to equal monthly payments, they might say yes to that.
• 28:17
  SPEAKER_01: Well, okay, if you want to pay me 25 grand more for my property, okay.
• 28:21
  SPEAKER_01: They might say no, I need something down.
• 28:23
  SPEAKER_01: Okay, well, what if I pay you nothing today?
• 28:26
  SPEAKER_01: And in 90 days, I pay you half of the money down, and then 90 days from that I pay you the other half.
• 28:34
  SPEAKER_01: And we tier it, right?
• 28:37
  SPEAKER_01: Which gives me enough time to fix up the property, find a lease option tenant, put them in there, collect an option deposit, equal or greater to the amount that I promised the seller, and now I'm still in the deal with none of my own money because a lease with an option buyer on the back end put up the option payment, which went to the original seller.
• 28:56
  SPEAKER_01: Now I own a piece of real estate that hopefully cash flows by whatever, a thousand bucks a month.
• 29:01
  SPEAKER_01: I get the tax benefits of owning the real estate, because they seller financed it to me.
• 29:06
  SPEAKER_01: So I seller finance on the front end, lease option on the back end, put a whole deal together and move on to my next one.
• 29:11
  SPEAKER_01: Now I got a thousand dollars a month income stream.
• 29:14
  SPEAKER_01: And if that lease option buyer does not execute the option, say in two years or however long that option time is, they just move out and I do it again with another lease option buyer.
• 29:27
  SPEAKER_01: And this thing becomes a massive cash cow and asset for me.
• 29:31
  SPEAKER_01: But these agents are rolling around and they're just so laser focused on getting a listing and getting a commission, they don't even see that they just walked away from their retirement plan.
• 29:42
  SPEAKER_00: Right.
• 29:43
  SPEAKER_00: Right.
• 29:44
  SPEAKER_00: They also make a lot of assumptions that oh, the seller would never go for that, right?
• 29:49
  SPEAKER_00: And I'm sure you have to go through a fair amount of property owners until you find someone who will be open-minded and who knew who that situation works for, right?
• 30:00
  SPEAKER_00: I imagine you're not batting a hundred.
• 30:04
  SPEAKER_01: Are properties flying off the shelf in this market?
• 30:07
  SPEAKER_01: No, it's getting harder and harder to because it's harder to buy, it's harder to qualify.
• 30:12
  SPEAKER_01: And if it gets worse, your business is just gonna get worse.
• 30:16
  SPEAKER_01: So you're at the mercy of the federal government and whatever they do and interest rates.
• 30:22
  SPEAKER_01: So you you're you're winging it right now as an as a real estate agent.
• 30:25
  SPEAKER_01: You might as well already get your resume together, right?
• 30:29
  SPEAKER_01: Because in six months you'll be working at Chili's.
• 30:32
  SPEAKER_01: And so it's like, let's get out from underneath this uh this um business model where you don't have any backup plans and you're at the mercy of all these other things.
• 30:43
  SPEAKER_01: Start educating yourself now on how you know, I talked about one of the three buckets.
• 30:48
  SPEAKER_01: Well, what happens if they have a loan on their property?
• 30:51
  SPEAKER_01: There are strategies subject to wraparound mortgages, look those terms up that allow you to take over somebody's mortgage without having to go to the bank and qualifying for it.
• 31:02
  SPEAKER_01: And once I understood Creative Finance and I started teaching it to the agents that I work with, first off, they they were doubling and tripling their income.
• 31:11
  SPEAKER_01: We were able to work a lot more together.
• 31:13
  SPEAKER_01: I was able to bring them into deals because either I would just pay them their commission or I'd say, listen, you want to go in on this deal with me?
• 31:20
  SPEAKER_01: I'll make you a 20% equity owner in the deal just for bringing it to the table.
• 31:24
  SPEAKER_01: I'll give you 25%.
• 31:26
  SPEAKER_01: And sometimes I'll go to the agent, hey man, the seller wants 10 grand down.
• 31:30
  SPEAKER_01: You put up the 10 grand down, I'll I'll do all the rest of the work for the property, turn it into an Airbnb, and we'll cash flow the crap out of this thing.
• 31:40
  SPEAKER_01: Like there's so many ways to structure a deal.
• 31:42
  SPEAKER_01: It's it's it's it's silly.
• 31:44
  SPEAKER_01: It becomes an un listen, in real estate, and every person needs to pay attention to this, you will never have a money problem.
• 31:52
  SPEAKER_01: Ever.
• 31:53
  SPEAKER_01: You only have a creativity problem.
• 31:56
  SPEAKER_01: So if you're going broke as an agent, it's because you're not creative enough.
• 31:59
  SPEAKER_01: That's it.
• 32:02
  SPEAKER_00: Man, I I hear that, I believe that, and I feel that as well.
• 32:05
  SPEAKER_00: Um, yeah, I was not creative when I was broke as an absolute joke in real estate.
• 32:10
  SPEAKER_00: I was only showing up with one option for sellers.
• 32:13
  SPEAKER_00: I'll list your house.
• 32:15
  SPEAKER_00: And I told myself stories like real estate investment is too complicated, there's too much I don't know, you have to go through so many sellers to you know to get one, it's not worth it.
• 32:26
  SPEAKER_01: You know, my brother won't let me do it, it's too risky, I'm gonna get in trouble.
• 32:31
  SPEAKER_00: Right.
• 32:32
  SPEAKER_00: Yeah, or it's illegal.
• 32:33
  SPEAKER_00: You know, you you come across the listing agent that's like, that's not even legal.
• 32:37
  SPEAKER_00: What are some of the biggest objectives you get from other agents on the other side of deals?
• 32:43
  SPEAKER_00: And let's break some of those barriers down right now and educate a little bit.
• 32:47
  SPEAKER_01: Yeah, I mean, you name some of them.
• 32:48
  SPEAKER_01: Um, first off, it's it's uh too risky.
• 32:52
  SPEAKER_01: My broker won't allow it.
• 32:53
  SPEAKER_01: That's a big one, right?
• 32:54
  SPEAKER_01: Because the brokers, they're very traditional.
• 32:58
  SPEAKER_01: Their job is to keep agents in the box, not making waves, not causing problems, just getting their listings, you know, bring being there by your agents, whatever they're supposed to do, and stick to the core traditional model.
• 33:10
  SPEAKER_00: Yep.
• 33:11
  SPEAKER_01: And maybe you got to leave that brokerage and go to a brokerage that has more flexibility.
• 33:17
  SPEAKER_01: I mean, you're either gonna do things the old school way and thrive at it, or you're gonna be out of business trying to do things the old school way.
• 33:25
  SPEAKER_01: And the chances of you being out of business is pretty high right now.
• 33:28
  SPEAKER_01: So it's like now's the time to lateral over into a better brokerage with a more creative uh broker that understands investing conversations, for instance, you know, us doing uh an agent offering multiple offers, right?
• 33:46
  SPEAKER_01: Hey, I want to list your property.
• 33:49
  SPEAKER_01: We try it, it doesn't work.
• 33:51
  SPEAKER_01: Hey, I have a backup plan.
• 33:52
  SPEAKER_01: What if I'm your buyer and you seller finance it to me?
• 33:56
  SPEAKER_01: You're you're crossing a fiduci line at that point, right?
• 34:00
  SPEAKER_01: Because your job is to represent the buyer, or I'm sorry, the seller, and do the best job you can for the seller.
• 34:08
  SPEAKER_01: But what if the best option for the seller is maybe you to buy their property?
• 34:12
  SPEAKER_01: Right.
• 34:13
  SPEAKER_01: Your broker's got to help you get behind that.
• 34:15
  SPEAKER_01: The disclosures have to be on point.
• 34:18
  SPEAKER_01: You gotta you gotta write your paperwork up the right way, and there's gotta be just complete clarity on all people that are involved in this transaction on what you're trying to accomplish, and everybody's got to sign off on it.
• 34:29
  SPEAKER_01: And that's it.
• 34:30
  SPEAKER_01: It's a it's a pretty easy thing to overcome if you're showing up as an expert, right?
• 34:35
  SPEAKER_01: Which is why you need to learn this stuff.
• 34:38
  SPEAKER_01: I put out an entire courses.
• 34:40
  SPEAKER_01: Um, one of my courses is called the Free House Formula.
• 34:44
  SPEAKER_01: And all it does is teach people those three buckets and which strategies work in each one of those buckets and which paperwork to deploy.
• 34:52
  SPEAKER_01: And I'm smart.
• 34:52
  SPEAKER_01: I'm like, you know what?
• 34:53
  SPEAKER_01: I'm not the best person to teach you how to fill out paperwork.
• 34:56
  SPEAKER_01: So I brought in an attorney that recorded himself filling out the paperwork because it's like nobody wants to get in legal trouble.
• 35:04
  SPEAKER_01: Let's have an attorney explain why the terms and the clauses are in the contract and why the disclosures are there.
• 35:10
  SPEAKER_01: And that's if you're not uh licensed.
• 35:13
  SPEAKER_01: Then you're gonna take that paperwork and you're gonna go to your broker and lay it out on the table and say, these are the types of things I want to get into.
• 35:19
  SPEAKER_01: What other agent disclosures do I need to add to this to get a sign off?
• 35:25
  SPEAKER_01: And a creative broker will tell you, you know, this is this is what I need.
• 35:29
  SPEAKER_01: And your title company, you also need an investor-friendly title company.
• 35:33
  SPEAKER_00: Yes.
• 35:34
  SPEAKER_01: That's a big thing.
• 35:35
  SPEAKER_01: If you're going to these traditional title companies, you're gonna get a lot of pushback when you're trying to do wraparound mortgages or contract for deeds or sub two transactions.
• 35:45
  SPEAKER_01: Um, my title company's done thousands and thousands of these creative deals.
• 35:50
  SPEAKER_01: I roll in, half the time they're telling me what I need.
• 35:53
  SPEAKER_01: Oh, go back to the seller and get them to fill out this disclosure form.
• 35:56
  SPEAKER_01: Aye, Captain, I'll be right back.
• 35:57
  SPEAKER_01: I go get them to sign stuff.
• 35:59
  SPEAKER_01: And they and they keep are keeping me out of trouble.
• 36:02
  SPEAKER_01: You understand?
• 36:02
  SPEAKER_01: So uh I can't really think of other objections other than I don't know how to present this to the seller.
• 36:10
  SPEAKER_01: I think that's the biggest.
• 36:11
  SPEAKER_01: That's a big that's a big one.
• 36:12
  SPEAKER_01: Like I just I think that's the root of it.
• 36:14
  SPEAKER_01: Yeah, and that really is hey, bring me on the list, bring me on a few of your appointments.
• 36:21
  SPEAKER_01: Let's tag team the conversation.
• 36:22
  SPEAKER_01: You have the rapport, I'll bring the technical side, then I'll build rapport and we'll work the deal together.
• 36:28
  SPEAKER_01: And however you want to do it.
• 36:30
  SPEAKER_01: You want to stay an agent, I'll pay you a commission.
• 36:31
  SPEAKER_01: You want to become a deal partner, we'll bring you on the equity.
• 36:34
  SPEAKER_01: It's up to you.
• 36:35
  SPEAKER_00: I love it.
• 36:36
  SPEAKER_00: Uh I know that we're because we've had this in the past, social media comments, we're gonna get agents saying, Well, that's all great, but creative financing is not legal in my state.
• 36:46
  SPEAKER_00: Have you ever seen a state where you can't do this, Cody?
• 36:49
  SPEAKER_01: There are some things that you can't do in certain states, but that doesn't mean it's not possible.
• 36:54
  SPEAKER_01: It just means that there's a way to do it right and there's a way to do it wrong.
• 36:58
  SPEAKER_01: And um, there's there, I I've never heard of a state that where it's illegal to seller finance.
• 37:06
  SPEAKER_01: Now, let me let me give some examples of where you can get in trouble.
• 37:10
  SPEAKER_01: Let's say I'm selling on seller finance a lot.
• 37:15
  SPEAKER_01: I could violate the Dodd-Frank Act if I, as an investor, am selling a lot of properties using seller finance as a way to dispo my properties, because I have to technically run that through a licensed mortgage bank in order to do it legally.
• 37:35
  SPEAKER_01: And they put that in place because of what happened in 2008.
• 37:39
  SPEAKER_01: And they they they kind of put the curb on all this Wild West seller finance activity and they and they put it to where I believe it's two per year, you're legally allowed to do.
• 37:50
  SPEAKER_01: And if you do more than one or two per year, then now you're you you need to be working with a licensed mortgage banker.
• 37:57
  SPEAKER_01: Now, on the buy side, there are certain things you can do and can't do when it comes to like lease options in the state of Texas, for instance, right?
• 38:06
  SPEAKER_01: Because they they are trying to protect owners.
• 38:10
  SPEAKER_01: That doesn't mean you can't do it, it just means there's a right way to do it.
• 38:13
  SPEAKER_01: So what I would do if I was in one of those states, after talking with my broker, I go sit down with a uh a real estate attorney and say, I'm trying to do subject to transactions in this state.
• 38:25
  SPEAKER_01: What do I need to disclose or how do I write this up to do it?
• 38:30
  SPEAKER_01: And they're gonna tell me, and I guarantee there's a way.
• 38:33
  SPEAKER_00: Yeah.
• 38:34
  SPEAKER_00: Yeah, love it.
• 38:35
  SPEAKER_00: Uh, I hear do on sale clause quite a bit.
• 38:38
  SPEAKER_00: Uh when uh when I first bought my house with seller financing, that was a concern of the sellers.
• 38:44
  SPEAKER_00: It was a concern of mine because you hear, oh, you can't do it because of the do on sale clause, but because of watching you and pace, I've learned it's not really an issue.
• 38:52
  SPEAKER_00: But can you talk a little bit more about the do on sale clause?
• 38:55
  SPEAKER_01: Yeah, so in every so so if you think about the way real estate's structured here in the United States, there's a mortgage or a deed of trust, and that shows who has title to the property, right?
• 39:09
  SPEAKER_01: That title is like a bundle of rights, right?
• 39:12
  SPEAKER_01: Think of like a bundle of sticks.
• 39:15
  SPEAKER_01: And each stick is like a different right, like the right to use and right of quiet enjoyment, and the right to burn it down if you want, the right to modify it, the right, it's this bundle of rights.
• 39:27
  SPEAKER_01: And so, like when I rent you my property, I'm not giving you all of my rights, I'm just disassembling one or two or three of the sticks and handing you those and saying, you have the right to use my property, but you don't own it.
• 39:40
  SPEAKER_00: Right.
• 39:41
  SPEAKER_01: Right?
• 39:41
  SPEAKER_01: And so that's title, and then a mortgage or a deed of trust, depending on what state you're in.
• 39:48
  SPEAKER_01: Some states are mortgage states, some states are deed of trust states.
• 39:53
  SPEAKER_01: That shows title.
• 39:54
  SPEAKER_01: But then when you take out a loan, you sign a note, and that note shows who you owe money to, right?
• 40:01
  SPEAKER_01: And that shows the payment structure, and then they they record it, uh, they record it to securitize the note.
• 40:08
  SPEAKER_01: So essentially what we're doing, when we're doing a sub two transaction or even a wraparound mortgage, we're separating the note and the deed of trust from each other.
• 40:20
  SPEAKER_01: And when we do that, we're transferring ownership over to the investor, but we're leaving the more the the note in place, the loan in place.
• 40:31
  SPEAKER_01: And when we're leaving the loan in place, there's language in the in the loan that says if you separate and transfer ownership to anybody else, we have the right, if you get caught, to escalate the amount due.
• 40:47
  SPEAKER_01: And it's called a due-on-sale clause.
• 40:50
  SPEAKER_01: And the big fear is well, if they catch me doing a sub-2 transaction or a wraparound mortgage, they're immediately gonna call this note due, and then I'm gonna be screwed because I'm gonna have to pay it off like right away.
• 41:01
  SPEAKER_01: So a couple things.
• 41:02
  SPEAKER_01: First off, rarely happens as long as you're making payments.
• 41:06
  SPEAKER_01: If you stopped making payments, it could go on the bank's radar and they can go, well, we're not being paid, and we just did a title search and the title's been transferred.
• 41:17
  SPEAKER_01: Let's escalate this.
• 41:20
  SPEAKER_01: It can also get called if let's say the seller dies and their heirs inherit what they thought was a deal or something, and they're stepping in and going, Well, why's the mortgage in dad's name?
• 41:34
  SPEAKER_01: But the property's been long gone for five years.
• 41:37
  SPEAKER_01: And they the the in the people that might be inheriting the estate might call the bank and go, I don't know what's going on here, but it looks like the mortgage is still in my dad's name, who's passed away, but the house, we don't own that house.
• 41:52
  SPEAKER_01: We sold that a long time ago.
• 41:53
  SPEAKER_02: Right.
• 41:54
  SPEAKER_01: And then it can hit the bank's radar.
• 41:56
  SPEAKER_01: Divorces do the same thing sometimes.
• 41:58
  SPEAKER_01: So there is some risk when doing these deals.
• 42:01
  SPEAKER_01: However, let's just think about what we can do when that happens.
• 42:05
  SPEAKER_01: One, we could put language in our contracts that say if the bank calls us and says, Hey, did you transfer ownership?
• 42:14
  SPEAKER_01: I could literally just deed it right back to you and unwind the deal and just hand you back your house.
• 42:18
  SPEAKER_01: Let's say I don't want it anymore.
• 42:20
  SPEAKER_01: That's one option.
• 42:21
  SPEAKER_01: I put it into my language in my contract that at any point in time I can give it back to you.
• 42:26
  SPEAKER_01: Okay, and maybe then the bank will go, Oh, well, what happened?
• 42:30
  SPEAKER_01: Oh, I just took out a loan and they securitized the loan, but they gave it back.
• 42:34
  SPEAKER_01: It's all back to normal.
• 42:35
  SPEAKER_01: Right?
• 42:35
  SPEAKER_01: And then the bank might say, Okay, just keep making your payments, we're good.
• 42:39
  SPEAKER_01: We can also refinance and cash it out or just pay it off, right?
• 42:46
  SPEAKER_01: Uh, or I can bring in a private money lender and bring them into the deal.
• 42:51
  SPEAKER_01: But I've first off, it is so rare for a bank to call a performing note due in full.
• 42:59
  SPEAKER_01: And one of the things we do sometimes in order to set this all up properly is we bring in a third-party servicing company because another one of the big fears is how do I know you're gonna make my payments?
• 43:10
  SPEAKER_00: Correct.
• 43:11
  SPEAKER_01: And we bring in a third-party servicing agent, Fidelity or Security Title, or one of these big title companies, they all for like seven to nine bucks a month, will send you a coupon book.
• 43:23
  SPEAKER_01: And then I make the payments to the the servicing agent.
• 43:27
  SPEAKER_01: The servicing agent makes the payments to on the on the loan, and then everybody gets notified that the payments have been made.
• 43:34
  SPEAKER_01: So now the seller goes, All right, I know payments have been made because we have this third party independent party that's making sure things get paid, and they notify me if they don't.
• 43:44
  SPEAKER_01: Uh, so there's not too many objections that they're gonna throw out at us that we don't already have a solution for.
• 43:51
  SPEAKER_01: Sometimes we put properties in trusts.
• 43:54
  SPEAKER_01: Those trusts are like, let's let's just say um for estate planning, the seller.
• 44:00
  SPEAKER_01: Creates a trust called the 555 Main Street Trust and they deed their property into that trust.
• 44:06
  SPEAKER_01: People do that all the time for estate planning.
• 44:09
  SPEAKER_01: And if the bank sees that your property is in a trust, normally they don't call the note due.
• 44:14
  SPEAKER_01: They don't care because it's in the trust.
• 44:16
  SPEAKER_01: But what if instead of buying the property, I buy and we assign the beneficiary rights of the trust over to me, the investor.
• 44:26
  SPEAKER_01: So we leave the trust in place, we leave the mortgage and or the deed in the trust, but we assign the beneficial rights to me.
• 44:34
  SPEAKER_01: We assign the uh I become the trustee of the trust.
• 44:38
  SPEAKER_01: So now I control the trust and I'm the beneficiary of the trust.
• 44:42
  SPEAKER_01: And we just hold that paperwork over in a filing cabinet until we're ready to record it at some point in the future.
• 44:49
  SPEAKER_01: Now I control the real estate, the bank cannot see really what's going on, right?
• 44:54
  SPEAKER_01: There's anonymity, and there's no do-on-sale fears or anything like that.
• 44:58
  SPEAKER_00: Right.
• 45:01
  SPEAKER_00: Dude, what's what's awesome is you've shown that there's all these potentially complicated things that once you just learn how they work, they become simple.
• 45:11
  SPEAKER_00: And you've shown that you have a tool for every situation, and this shows the path for agents.
• 45:18
  SPEAKER_00: Like if you want to provide more value to the to the property owner than just I'll list it or I'll buy it and build your own portfolio, you gotta learn this shit.
• 45:29
  SPEAKER_00: And uh Cody, how realistically, if it if an agent that's working full-time, you know, they're doing the whole deal and they're like, hey, I want to do this as well.
• 45:37
  SPEAKER_00: I want to pick up two properties a year for myself creatively.
• 45:42
  SPEAKER_00: How much time should they put into learning this stuff?
• 45:46
  SPEAKER_01: As much as it takes right away.
• 45:48
  SPEAKER_01: You need to go all in and become obsessive over learning creative finance.
• 45:52
  SPEAKER_01: This is think about this.
• 45:54
  SPEAKER_01: 53% of all mortgages generated in the United States have been generated from 2020 to 2022.
• 46:02
  SPEAKER_00: That's crazy.
• 46:03
  SPEAKER_01: And they have a 4% mortgage or less.
• 46:06
  SPEAKER_01: This is the gold rush, guys.
• 46:08
  SPEAKER_01: This is the this is the thing.
• 46:09
  SPEAKER_01: This is why nobody's moving.
• 46:10
  SPEAKER_01: People aren't gonna trade.
• 46:12
  SPEAKER_01: There's great mortgage for crappy mortgage, they're just not gonna do it.
• 46:15
  SPEAKER_01: That's why the inventory is so low right now.
• 46:17
  SPEAKER_01: And so you need to learn this stuff.
• 46:19
  SPEAKER_01: How to take over a mortgage, how to how to work a deal.
• 46:23
  SPEAKER_01: By the way, I think it's one in like 79 homes or one in 83 homes in the United States is on free and clear.
• 46:31
  SPEAKER_01: Like there's a massive amount of free and clear inventory.
• 46:34
  SPEAKER_01: There's a massive amount of inventory with phenomenal mortgages on them.
• 46:37
  SPEAKER_01: You are missing out on all of that deal flow.
• 46:41
  SPEAKER_01: You should be able to do one to two a month.
• 46:43
  SPEAKER_01: Fuck one to two a year.
• 46:45
  SPEAKER_01: Why can't you get an extra 20 houses this year that all bring in 750 to a thousand bucks a month in pure cash flow times 20?
• 46:56
  SPEAKER_00: Right.
• 46:57
  SPEAKER_01: Now you're not dependent on interest rates, and you're not dependent on what your dumbass broker says to you one day, or the fact that some listing or some buyer is a looky loo and driving you fucking crazy.
• 47:11
  SPEAKER_01: Like you are you are building this foundation of control where now you get to pick which clients you work with.
• 47:17
  SPEAKER_01: You get to pick when you work.
• 47:19
  SPEAKER_01: You this is the freedom of being in real estate.
• 47:22
  SPEAKER_01: And by the way, if you're not bringing me or some investor at least two phenomenal opportunities that turn into deals per month, and that investor isn't paying you between$5,000 to$7,500 per deal, you're missing out on$10,000 to$15,000 every month in guaranteed money.
• 47:42
  SPEAKER_01: All by having one relationship with one great real estate investor that really knows creative.
• 47:47
  SPEAKER_01: Because I'll pay you five grand or$7,500 for every good deal you bring my way, especially if it's a a four-plex or a 16 unit and the seller's willing to carry, and it's a smaller multifamily, so it's like a mom and pop type person, and they're getting older, but they they're savvy, they're not gonna sell it at a big discount.
• 48:07
  SPEAKER_01: They want top dollar, and the only way we can pay them top dollar is if they give us the rest of the terms.
• 48:14
  SPEAKER_00: Yes, I love it.
• 48:16
  SPEAKER_00: Um, there's a lot of agents freaking out, have been for a while, about interest rate spiking, the current environment.
• 48:25
  SPEAKER_00: A lot of them have quit the business already.
• 48:27
  SPEAKER_00: I know there's huge attrition happening right now, uh, which is healthy, but it still sucks for those that it's happening to.
• 48:33
  SPEAKER_00: Um, you seem very I mean, you're loving this environment right now, aren't you?
• 48:40
  SPEAKER_01: You know, the aesthetic side of me is really sad for people.
• 48:45
  SPEAKER_01: Where there's so many people out there out of runway, they're financially getting destroyed, they're scared to death.
• 48:52
  SPEAKER_01: Unfortunately, I was around during 2008's crash.
• 48:55
  SPEAKER_01: I made tens of millions of dollars, but I had friends kill themselves.
• 48:58
  SPEAKER_01: I had friends never recover financially, lose their marriages, go through bankruptcy, and never recover.
• 49:05
  SPEAKER_01: And they were making millions of dollars as house flippers and rehabbers, and now then they just got obliterated and now they're so scared they never jumped back in.
• 49:14
  SPEAKER_01: And here I am, this little engine that could.
• 49:16
  SPEAKER_01: I'm not the smartest guy in the world.
• 49:19
  SPEAKER_01: Uh I I just I just am relentless.
• 49:22
  SPEAKER_01: I just never fucking quit.
• 49:23
  SPEAKER_01: And I'm like, okay, uh, my mentor used to always say, Cody, people never rise to the occasion.
• 49:30
  SPEAKER_01: They just fall to their higher, highest level of preparation.
• 49:33
  SPEAKER_01: I need to be prepared for these market shifts because it's just part of the gig.
• 49:37
  SPEAKER_01: I need to learn new skills and capabilities because otherwise I'm I'm not smart enough naturally to figure things out.
• 49:44
  SPEAKER_01: So I got to be working really hard to get prepared to increase my skills.
• 49:49
  SPEAKER_01: And it sucks.
• 49:49
  SPEAKER_01: I suck at math, I hate studying, I fucking hated school, but I love to make money.
• 49:55
  SPEAKER_01: And I know that when turbulent times come, these are the moments where ridiculous amounts of money are made.
• 50:02
  SPEAKER_01: And people need to understand once you understand the money game, you realize that this is a zero-sum game.
• 50:09
  SPEAKER_01: Money never leaves the ecosystem, it just changes hands.
• 50:12
  SPEAKER_01: And I want to be on the right side of the equation.
• 50:15
  SPEAKER_01: If I made tens of millions last time, I want to make hundreds of millions this time.
• 50:19
  SPEAKER_01: Well, how do I do that?
• 50:20
  SPEAKER_01: I use cutting-edge technology like artificial intelligence because that's what the hedge funds do.
• 50:25
  SPEAKER_01: That's what the big dogs do.
• 50:27
  SPEAKER_01: They're not playing fair.
• 50:29
  SPEAKER_01: They get better interest rates than us because they they're closer to the creation of money.
• 50:34
  SPEAKER_01: They have better banking relationships.
• 50:37
  SPEAKER_01: So they're using unfair tech and unfair lending.
• 50:41
  SPEAKER_01: They are more aggressive than us with on their marketing side of things.
• 50:45
  SPEAKER_01: This is why I tell every agent: if you're not aggressively building a personal brand, you're an idiot.
• 50:50
  SPEAKER_01: You're just, oh, I'm not, I don't, I'm a little, I don't like being on camera.
• 50:54
  SPEAKER_01: Shut the fuck up.
• 50:55
  SPEAKER_01: Get your camera out and start recording content.
• 50:58
  SPEAKER_01: You are a real estate expert.
• 50:59
  SPEAKER_01: Every person in your world needs to know what you do, how you do it, watch you do it, and you need to be relentless on creating content.
• 51:06
  SPEAKER_01: Well, I don't know what to say, Cody.
• 51:08
  SPEAKER_01: Use Chat GPT, motherfucker.
• 51:11
  SPEAKER_01: This is not complicated.
• 51:13
  SPEAKER_01: Uh it is now at a point where ChatGPT will tell you exactly what to say.
• 51:18
  SPEAKER_01: Write me a one-minute script on how to sound like a real estate expert in the state of California on the three ways for a seller-to-seller finance me a deal.
• 51:25
  SPEAKER_01: It's gonna, and it'll write you a one-minute script better than anything you can write.
• 51:29
  SPEAKER_01: Then get out your little phone, get out your teleprompter app like Big View, B-I-G-V-U, upload your little script and read the damn thing.
• 51:37
  SPEAKER_01: And put it out on all social platforms and do that three times a day for 91 days in a row.
• 51:44
  SPEAKER_01: And be obsessive over your brand and tell people how to do business with you and pull people off of social into your world.
• 51:52
  SPEAKER_01: Those are the agents that are gonna thrive.
• 51:54
  SPEAKER_01: They're building a brand, they're using unfair tech, they're increasing their skills and capabilities to learn how to do this creative stuff.
• 52:00
  SPEAKER_01: They're the ones that are gonna go off and make crazy amounts of money because they're gonna elevate from agent to expert.
• 52:07
  SPEAKER_01: And there's only nobody's gonna roll out the fucking red carpet for you.
• 52:11
  SPEAKER_01: This is you said it, it's a it's a cleansing.
• 52:13
  SPEAKER_01: So on one side, I feel horrible for all the people that this is happening to.
• 52:17
  SPEAKER_01: On the other side, I'm like, fucking, this is the moment I've been waiting for.
• 52:20
  SPEAKER_01: An average adult maybe has four or five times in their entire life that they have an opportunity of a lifetime.
• 52:31
  SPEAKER_01: Once or twice we're before the age of 18, so we don't know what to do with it.
• 52:36
  SPEAKER_01: Once or twice is over the age of 65, so we don't give a shit.
• 52:39
  SPEAKER_01: But once or twice is right in that sweet spot.
• 52:42
  SPEAKER_01: We had it in 2008, now we're having it again right now.
• 52:46
  SPEAKER_01: Why are you gonna waste this?
• 52:48
  SPEAKER_01: This is the greatest transfer of wealth we potentially will ever have again.
• 52:53
  SPEAKER_01: And those mortgages are gold, and the free and clear properties are gold, and you're on the front lines of the greatest asset.
• 53:01
  SPEAKER_01: Real estate is future-proof.
• 53:02
  SPEAKER_01: People will always need a place to live.
• 53:04
  SPEAKER_01: There will be flying cars, parking and garages someday, and you could be making money from it.
• 53:09
  SPEAKER_01: And you cannot be paying taxes.
• 53:12
  SPEAKER_01: The only reason to own real estate is not to pay taxes, right?
• 53:16
  SPEAKER_01: I I would have owed two and a half, three million dollars last year in taxes.
• 53:20
  SPEAKER_01: I paid no taxes because I bought the right real estate.
• 53:24
  SPEAKER_01: And if, by the way, last thing on my little rant, and I'll I'll let you ask a question.
• 53:28
  SPEAKER_01: But if you're only doing single family, you're an idiot.
• 53:33
  SPEAKER_01: Commercial and multifamily is where the tax breaks are.
• 53:37
  SPEAKER_01: The government tells us what they want.
• 53:39
  SPEAKER_01: We want affordable housing.
• 53:42
  SPEAKER_01: You have to start elevating past this, I'm a single family home listing agent bullshit.
• 53:49
  SPEAKER_01: No, you're a real estate expert that makes money from all leads and all things real estate.
• 53:54
  SPEAKER_01: And if you don't own multifamily and you don't own commercial, you're gonna be paying too much in taxes.
• 53:59
  SPEAKER_01: And you can't save your way to wealth.
• 54:02
  SPEAKER_01: It's impossible.
• 54:03
  SPEAKER_01: With inflation and taxes, you'll never beat this money game.
• 54:06
  SPEAKER_01: And then there's doofuses like me that smoked weed all through high school, sold weed out of the Burger King drive-thru window, little hustler, out here making it fucking rain all day, every day.
• 54:17
  SPEAKER_01: You should, I mean, my bank account's nasty.
• 54:20
  SPEAKER_01: Like, there's not, I mean, there's very few days I don't make 40, 50k.
• 54:24
  SPEAKER_01: Like, what kind of life is that?
• 54:26
  SPEAKER_01: It's fucking freedom.
• 54:28
  SPEAKER_01: And I started with nothing.
• 54:29
  SPEAKER_01: $30,000 in credit card debt, but we're over here winning because we play to win.
• 54:34
  SPEAKER_01: We show up every day and we're like, dude, this is it.
• 54:36
  SPEAKER_01: Super Bowl, baby, ripped rich and rare.
• 54:39
  SPEAKER_01: All these, uh now you're getting me going.
• 54:42
  SPEAKER_01: All these motherfucking agents that are fat, overweight, unhealthy, but they got their little gold Rolex on them.
• 54:49
  SPEAKER_01: Like, what the fuck, dude?
• 54:50
  SPEAKER_01: Okay, so you're you're winning the money game, but you're losing the health game?
• 54:54
  SPEAKER_01: Why are you not playing?
• 54:56
  SPEAKER_01: Why are you not setting a standard for every person watching you that I am the elite entrepreneur that shows up every day, that sets a standard, that plays to win, that's a leader that's showing everybody around me what's possible.
• 55:11
  SPEAKER_01: So people make fun of me.
• 55:13
  SPEAKER_01: Yeah, I had my stupid green Lamborghini and all my ads.
• 55:16
  SPEAKER_01: Fuck yeah, I put my Lambo.
• 55:17
  SPEAKER_01: You know how proud I am to buy that car?
• 55:19
  SPEAKER_01: Dude, I was driving around a piece of shit in Nissan pickup truck for 10 years.
• 55:24
  SPEAKER_01: I skipped to the Lambo dealership to pay cash for that motherfucker.
• 55:28
  SPEAKER_01: Like, I love I love having nice things.
• 55:31
  SPEAKER_01: I also love building 113 schools in third world countries.
• 55:37
  SPEAKER_01: You know, I want to set standards.
• 55:39
  SPEAKER_01: I want to have a six-pack.
• 55:41
  SPEAKER_01: I want to be, I want to be proud when I rip off my shirt at the beach.
• 55:45
  SPEAKER_01: All right, I want my girl to be like, I can't wait to get home with that dude.
• 55:50
  SPEAKER_01: But I see so many people that are losers in the religion game, they have no spiritual connection, they're losers in the relationship game, but they're winning the money game in real estate or something like that.
• 56:02
  SPEAKER_01: It's like, look, you're only your whole world is held up by one pillar.
• 56:06
  SPEAKER_01: And the second that goes away, you're gonna have nothing.
• 56:11
  SPEAKER_01: So right now, the way the world is, you gotta be good playing on all cylinders.
• 56:16
  SPEAKER_01: Every day moving, eating healthy, trying to trying to get that six.
• 56:21
  SPEAKER_01: One in one in ten, what was the stats?
• 56:24
  SPEAKER_01: One in fuck, I'm gonna forget it.
• 56:28
  SPEAKER_00: About how much more rare it is to have a six pack than a million dollars or something like that.
• 56:32
  SPEAKER_01: Yeah, yeah, yeah.
• 56:32
  SPEAKER_01: I I know I know that one in 25,000 Americans have a six pack.
• 56:37
  SPEAKER_01: But it was like one in I'm gonna screw it up.
• 56:42
  SPEAKER_01: But anyway, it was it was way more millionaires than people that are healthy.
• 56:46
  SPEAKER_00: Yes.
• 56:47
  SPEAKER_01: It's ridiculous.
• 56:49
  SPEAKER_00: Yeah, dude, I fucking love you, man.
• 56:52
  SPEAKER_00: I I I did not want to get in your way with that because that that's pure gold.
• 56:55
  SPEAKER_00: And it's going to touch the people that it's supposed to.
• 56:58
  SPEAKER_00: And something that I know you you meant in the spirit of what you're saying, but I think it it's worth saying out loud.
• 57:04
  SPEAKER_00: If you are selling 300 homes a year, you're number one in your market or brokerage or whatever, and you're an awful parent, I'd say you're losing life.
• 57:14
  SPEAKER_01: You're a loser.
• 57:15
  SPEAKER_01: You're a loser.
• 57:16
  SPEAKER_01: You kids don't give a shit about 300 homes.
• 57:19
  SPEAKER_01: No.
• 57:19
  SPEAKER_00: Nope.
• 57:20
  SPEAKER_00: They just know dad's gone again.
• 57:22
  SPEAKER_01: Last year I lost my mom to cancer.
• 57:25
  SPEAKER_01: I also went through a divorce.
• 57:26
  SPEAKER_01: You really reflect when you when you fucking faceplant like that.
• 57:31
  SPEAKER_01: You know, you I went through a tremendous amount of therapy last year, an insane amount.
• 57:37
  SPEAKER_01: And I'm so mad at myself for not doing it sooner.
• 57:41
  SPEAKER_01: I'm so happy right now.
• 57:43
  SPEAKER_01: I was miserable for a long time.
• 57:45
  SPEAKER_01: Killing the money game, but being a loser parent, not my my health was out of whack.
• 57:51
  SPEAKER_01: I had zero spiritual connection, but I was great at making money.
• 57:57
  SPEAKER_01: Guess what people said behind my back?
• 57:59
  SPEAKER_01: It wasn't, I love that guy.
• 58:02
  SPEAKER_01: It was Cody's great at making money.
• 58:04
  SPEAKER_01: He could be an asshole, though.
• 58:07
  SPEAKER_01: You know, it's like, what?
• 58:10
  SPEAKER_01: I have a better relationship now with my my son and my daughter than I've ever had, and my ex-wife, and all my business partners, because I'm now gunning on all cylinders.
• 58:23
  SPEAKER_01: And I and they see it and they feel it, you know, and I'm in alignment with my purpose.
• 58:27
  SPEAKER_01: I'm in alignment with my words.
• 58:30
  SPEAKER_01: People that are out of congruency in their health and in their words and in their promises to themselves, they're they're wondering why opportunities aren't happening for them.
• 58:40
  SPEAKER_01: They're wondering why they're struggling all the time and they're stressed all the time.
• 58:43
  SPEAKER_01: They're wondering why people don't want to get, you know, lend them money or do things with them.
• 58:48
  SPEAKER_01: It's because people can feel fake, they can feel your inauthenticity, they they they're watching you and your words don't match your actions, and they're looking at your body and going, dude, this person is a fucking mess.
• 59:01
  SPEAKER_00: Yep.
• 59:03
  SPEAKER_01: But if it the good news is it's easy to fix.
• 59:07
  SPEAKER_01: It took unfortunately for entrepreneurs like me and guys like me, it's not, I have to get like ran the fuck over before I wake up.
• 59:15
  SPEAKER_01: You know, that's unfortunate for me.
• 59:17
  SPEAKER_01: It wasn't like a tap on my shoulder or a podcast conversation.
• 59:20
  SPEAKER_01: And I hope this at least plants a seed for some people.
• 59:24
  SPEAKER_01: But dude, go to therapy, work on the inner child stuff.
• 59:27
  SPEAKER_01: Work on, you know, I had open heart surgery on my inner child.
• 59:31
  SPEAKER_01: I went deep.
• 59:33
  SPEAKER_01: Horse therapy, acting therapy, EMDR therapy, one-on-one, group.
• 59:38
  SPEAKER_01: I went all the way down the rabbit hole.
• 59:40
  SPEAKER_01: But I was in a pretty dark place.
• 59:43
  SPEAKER_01: Going once a week and talking to somebody on a couch isn't gonna get you to where you want to go.
• 59:47
  SPEAKER_01: You really got to go deep.
• 59:49
  SPEAKER_01: You got to do the breath work and you got to address all that subconscious pain that you're carrying around.
• 59:55
  SPEAKER_01: And you wanna be a superstar massive agent, start working on yourself.
• 1:00:02
  SPEAKER_01: Like, even right now, Dustin, we're having this conversation.
• 1:00:06
  SPEAKER_01: We're in flow state, bro.
• 1:00:08
  SPEAKER_01: You know what we're not doing?
• 1:00:09
  SPEAKER_01: We're not worrying about the bills, we're not worrying about some deal that's going south, we're not worrying about the news or problems in the world because we're serving others.
• 1:00:17
  SPEAKER_01: Me and you, we're in alignment and we're serving others.
• 1:00:20
  SPEAKER_01: I also feel phenomenal and in flow state when I'm working out.
• 1:00:25
  SPEAKER_01: Because when I'm working out, I'm raising all my enthusiasm and my intention and my blood flow and my oxygen levels and my serotonin.
• 1:00:33
  SPEAKER_01: Everything's firing, right?
• 1:00:34
  SPEAKER_01: And so I'm not worried about all this other shit.
• 1:00:37
  SPEAKER_01: And then people that do these things and put in the inner work, they start to get in alignment with their words.
• 1:00:45
  SPEAKER_01: They start to get in alignment with their purpose, and then everything starts to gravitate towards them.
• 1:00:49
  SPEAKER_01: And life gets real good, even in dark times out in the in the world, and they become more creative and they start to dominate.
• 1:00:57
  SPEAKER_01: The people that don't, they wonder why somebody cuts them off in traffic and they lose their fucking mind, and then the rest of their day is ruined.
• 1:01:05
  SPEAKER_01: And they never can bounce back.
• 1:01:06
  SPEAKER_01: And then they show up, they work hard all day.
• 1:01:09
  SPEAKER_01: This used to be me.
• 1:01:10
  SPEAKER_01: Work all hard all day, and I'd go home and I'd pull in and I'd take my work home with me.
• 1:01:15
  SPEAKER_01: And I'd be a toxic, negative, nasty, short-tempered husband and father.
• 1:01:26
  SPEAKER_01: And no wonder my marriage fell apart.
• 1:01:28
  SPEAKER_01: I put my my girl into her masculine.
• 1:01:33
  SPEAKER_01: I didn't let her fall into her feminine, she didn't feel safe.
• 1:01:36
  SPEAKER_01: I'm over here gunning like a warrior, and I show up from work as a warrior to my house.
• 1:01:42
  SPEAKER_01: And I would barf all over my family of all the toxic things that happened that day, which is stupid.
• 1:01:48
  SPEAKER_01: I needed to park that shit in my car.
• 1:01:53
  SPEAKER_01: We're transitioning into some real life conversations now, and this is bigger than agent stuff, but look, the ultimate goal for all of us is to win the game of life.
• 1:02:04
  SPEAKER_00: Yes.
• 1:02:04
  SPEAKER_01: That's it, man.
• 1:02:05
  SPEAKER_01: How do you win?
• 1:02:07
  SPEAKER_01: Step one is I cannot give what I do not have.
• 1:02:12
  SPEAKER_01: I can't give you unconditional love, my time and my best self, if I don't have unconditional love for myself.
• 1:02:22
  SPEAKER_01: If I don't walk around congruent with my own words, if I'm lying to everybody and lying to myself, I'm out of alignment.
• 1:02:30
  SPEAKER_01: So go get the help.
• 1:02:34
  SPEAKER_01: Men, specifically, check yourself.
• 1:02:38
  SPEAKER_01: Where are you out of alignment?
• 1:02:39
  SPEAKER_01: Your body is telling you, the world is telling you, my marriage is suffering, my relationship with God is suffering, my money game is suffering for a fucking reason.
• 1:02:48
  SPEAKER_01: And just start hacking away at it.
• 1:02:51
  SPEAKER_01: People didn't know.
• 1:02:52
  SPEAKER_01: For like a year, I would go work out.
• 1:02:55
  SPEAKER_01: I was every Sunday, I would really go to church and sit in the fucking back.
• 1:02:59
  SPEAKER_01: And I'd just be back there crying, man, like by myself in the back of church because I didn't have a relationship with God and I didn't know how to create one.
• 1:03:08
  SPEAKER_01: I would have these one-way conversations that I never heard anything back.
• 1:03:13
  SPEAKER_01: But just like everything else in my life, I knew that step one was just showing up.
• 1:03:20
  SPEAKER_01: You know, just putting in the reps of like, okay, I'm here, you know, I don't know why I'm here, but I'm suffering and I feel like I'm suffering.
• 1:03:30
  SPEAKER_01: And even today I still I still have a hard time.
• 1:03:33
  SPEAKER_01: But I show up.
• 1:03:34
  SPEAKER_01: I always show up.
• 1:03:35
  SPEAKER_01: And I I do that now in my relationships and in my the money game's easy.
• 1:03:40
  SPEAKER_01: That's the easy part.
• 1:03:42
  SPEAKER_01: You get the rest of it right, you get your health game right, your spiritual game right, your relationship game right, the money thing happens.
• 1:03:48
  SPEAKER_01: I promise you, your girl will be your biggest supporter.
• 1:03:51
  SPEAKER_01: And when you get home, she'll want to fuck the shit out of you because you're showing up right, and your marriage is gonna thrive, and you're not gonna be a doofus like me and implode that shit over.
• 1:04:02
  SPEAKER_01: You know what I did, I hid my pain and achievement.
• 1:04:06
  SPEAKER_00: Right.
• 1:04:07
  SPEAKER_01: And a lot of men do this.
• 1:04:08
  SPEAKER_01: Don't be like me.
• 1:04:10
  SPEAKER_01: Fix it before it's too late.
• 1:04:13
  SPEAKER_00: Dude, what uh I mean, I've respected you before I really knew you and heard especially recently.
• 1:04:20
  SPEAKER_00: Like, you know, you you've been very open and vulnerable recently about this journey you've gone through.
• 1:04:27
  SPEAKER_00: Um I always just saw, like, you know, what everyone else saw cars, money, houses, success, fame on Instagram, all this stuff, right?
• 1:04:36
  SPEAKER_00: That's all great.
• 1:04:37
  SPEAKER_00: But I've you've earned such deep respect for me since I heard what was going on behind the scenes, how you burned it to the ground, and how you're rebuilding it.
• 1:04:50
  SPEAKER_00: And because every single one of us can relate in some way.
• 1:04:56
  SPEAKER_00: We can if we're honest with ourselves, there's somewhere we're falling short, and this should be a swift kick in the ass to focus on it, right?
• 1:05:06
  SPEAKER_00: I mean, dude, I used to be super out of shape until late 2020.
• 1:05:10
  SPEAKER_00: I got in shape.
• 1:05:11
  SPEAKER_00: I I started eating healthy and eating clean, and I take care of myself, and my wife and I do shit together as a team, and we're stronger now than ever.
• 1:05:20
  SPEAKER_00: That is such a um as you know, right?
• 1:05:25
  SPEAKER_00: Like where you're at now, Cody, when you are working on all this stuff, and it it you show up to the office on fire because you're just on cloud nine already.
• 1:05:35
  SPEAKER_00: Like you start the day, just you know you've been a great parent that day, you've been a good spouse, you you're all the things, right?
• 1:05:42
  SPEAKER_00: But if you're we could do a whole other hour on this, but um I love hearing that, Dustin.
• 1:05:48
  SPEAKER_01: I'm proud of you, man.
• 1:05:49
  SPEAKER_01: That's phenomenal, and it's a great standard to set.
• 1:05:53
  SPEAKER_01: You know, you you you're blessed to be in a position where you're impacting a lot of people, right?
• 1:05:58
  SPEAKER_01: And you are people are watching you.
• 1:06:00
  SPEAKER_01: Kids are watching, yes, girls watching, your family's watching.
• 1:06:03
  SPEAKER_01: That what does it mean to set a standard?
• 1:06:05
  SPEAKER_01: What does it mean to be a leader?
• 1:06:08
  SPEAKER_01: It's doing the right thing when nobody else is looking, it's setting a standard for everybody that is looking, you know, and most people are just boring ass adults.
• 1:06:18
  SPEAKER_01: We've been conditioned to play small, think small, be average, don't rock the boat.
• 1:06:23
  SPEAKER_01: And it's just ridiculous.
• 1:06:25
  SPEAKER_01: And then we stare at people that elevate and we that raise their enthusiasm, raise their intention, and we go, wow, that's crazy.
• 1:06:34
  SPEAKER_01: And we and we write books about these people and we build statues around them, and they go off and become superstars.
• 1:06:41
  SPEAKER_01: But the rest of us are just boring as fuck.
• 1:06:44
  SPEAKER_01: And we don't have to be.
• 1:06:45
  SPEAKER_00: Right.
• 1:06:46
  SPEAKER_01: There is greatness inside you, but the reality is nobody's gonna roll out the red carpet for you.
• 1:06:53
  SPEAKER_01: It is your obligation to step the fuck up and figure out what it means to be successful for you.
• 1:07:01
  SPEAKER_01: It's your obligation, it's not an option, it's an obligation because you know the reality is the divide between the wealthy and poor is getting bigger, and it's gonna continue to get bigger, and it's gonna continue to get harder to get wealthy.
• 1:07:18
  SPEAKER_01: And they are designing the system this way.
• 1:07:20
  SPEAKER_01: There will there will be a currency, a digital currency, that tracks all of your movement.
• 1:07:28
  SPEAKER_01: They are gonna strip away your rights.
• 1:07:31
  SPEAKER_01: And those of us that have already transitioned and made it because I own hundreds of millions of dollars worth of real estate, you know, it's like, why do why do billionaires buy farmland?
• 1:07:44
  SPEAKER_01: Because they understand that if they want to retain power, they got to control the food.
• 1:07:51
  SPEAKER_01: And why are corporations subsidized and empowered by government buying up one-fifth of every house in the United States and all the apartment buildings and all of the commercial buildings?
• 1:08:05
  SPEAKER_01: It's because if they want to control the vote, they got to control the housing.
• 1:08:11
  SPEAKER_01: This game is rigged against you, and you can't control any of that, but you can control your economic environment, you can control your household, you can control your daily actions, and you can work like hell right now to not only uh set that standard for your kids and everybody watching, but also you have a unique window in time to get embarrassingly wealthy through real estate, but you never will get there if you're just working on commissions.
• 1:08:42
  SPEAKER_01: Never.
• 1:08:42
  SPEAKER_01: It'll never happen for you.
• 1:08:44
  SPEAKER_01: You might as well just quit and go get another job.
• 1:08:48
  SPEAKER_00: I cannot think of a better call to action.
• 1:08:50
  SPEAKER_00: Cody, where can people find you?
• 1:08:53
  SPEAKER_00: What's the best place for them to find you and learn from you and then get trained by you on how to do all this stuff?
• 1:08:58
  SPEAKER_01: Yeah, my favorite new uh offer that I have right now is my AI real estate system.
• 1:09:04
  SPEAKER_01: We're using powerful AI technology to lead score every single uh homeowner in the United States.
• 1:09:10
  SPEAKER_01: We give them three scores powered by AI, a retail score, this is great for agents, uh rental score, and a wholesale score, which is great for investors.
• 1:09:19
  SPEAKER_01: So think of think of this.
• 1:09:21
  SPEAKER_01: What if you had a software that had predictive capabilities, like a psychic, and it would be able to identify homeowners in the United States that within the next 90 days will list their house?
• 1:09:35
  SPEAKER_01: That'd be pretty powerful, right?
• 1:09:36
  SPEAKER_01: Huge.
• 1:09:36
  SPEAKER_02: Yeah.
• 1:09:37
  SPEAKER_01: Or we'll sell at a massive discount from retail.
• 1:09:41
  SPEAKER_01: If I knew out of the 180 million homeowners out there, that these 1 million are going to sell at a discount within the next 90 days, those are the only people I got to target.
• 1:09:53
  SPEAKER_01: And if I zero that down into just my local area, maybe it's telling me there's only 75 people I got to target.
• 1:10:00
  SPEAKER_01: Now I can really work hard with my marketing and my relationship building to get out in front of those leads and ignore the rest because AI is pretty damn smart.
• 1:10:10
  SPEAKER_01: They're looking at 136 billion data points.
• 1:10:13
  SPEAKER_01: And based on whether you live with your mother-in-law or not, or whether or not you subscribe to certain magazines, or what websites you visit, or where you travel, it's it's it's smart data out there that will help us target.
• 1:10:25
  SPEAKER_01: And so my AI real estate system, we've been working really hard on this.
• 1:10:29
  SPEAKER_01: If you go to AI uh real estate, let me is it AI Realestate.com.
• 1:10:34
  SPEAKER_01: I think it's AI, AI, AI Real Estatesystem.com.
• 1:10:38
  SPEAKER_01: Like artificial intelligence, AI Real Estatesystem.com.
• 1:10:42
  SPEAKER_01: If you want to get help from me, uh that's got my creative finance stuff in it.
• 1:10:46
  SPEAKER_01: It's got my wholesaling stuff in it.
• 1:10:48
  SPEAKER_01: It'll it'll teach you to be a well-rounded real estate investor.
• 1:10:51
  SPEAKER_00: I love it.
• 1:10:52
  SPEAKER_00: You guys have to get on Cody's email list too.
• 1:10:55
  SPEAKER_00: I've heard about this AI.
• 1:10:56
  SPEAKER_00: Well, I've heard about it on your podcast, but uh your emails are just absolutely second to none.
• 1:11:01
  SPEAKER_01: Um I write all my own copy, bro.
• 1:11:03
  SPEAKER_01: I taught myself copywriting, I build my own funnels, I've sold a hundred million dollars online so far, all through direct response, all self-taught.
• 1:11:12
  SPEAKER_01: You know, these are the skills and capabilities I'm talking about, guys.
• 1:11:15
  SPEAKER_01: Like you I built a personal brand on my own because I I knew that that was the key to never being out of business.
• 1:11:22
  SPEAKER_01: You cannot put me out of business because I have so much lead flow.
• 1:11:27
  SPEAKER_01: I can totally screw up everything today and by tomorrow I'm bouncing right back.
• 1:11:31
  SPEAKER_01: And and uh, same with copywriting, same with sales skills, same with presenting on video.
• 1:11:36
  SPEAKER_01: I sucked on video in the beginning, but through repetition, I got better and better.
• 1:11:40
  SPEAKER_01: And so AI Realestatesystem.com, Clever Investor on all other platforms, and my new podcast, The Clever Investor Show, uh streaming on all podcasting platforms.
• 1:11:51
  SPEAKER_01: Anything I can do to serve you guys, I love working with agents, mortgage professionals, and investors.
• 1:11:57
  SPEAKER_01: I'm an open book.
• 1:11:59
  SPEAKER_01: Most of my shit is free.
• 1:12:00
  SPEAKER_01: Like if you go to my YouTube channel at Clever Investor on YouTube, I have tons of free stuff.
• 1:12:05
  SPEAKER_01: You don't have to buy anything from me, and you're gonna learn a ton.
• 1:12:07
  SPEAKER_01: Uh, I just want to play a part in your real estate journey and push you to think bigger and get out of your way.
• 1:12:14
  SPEAKER_01: And uh, if you do that, I promise you, this will be the next five years.
• 1:12:18
  SPEAKER_01: You will we will all ride off into the sunset, getting embarrassingly wealthy and helping a lot of people along the way.
• 1:12:25
  SPEAKER_00: Dude, you're you're one of the best in the biz, man.
• 1:12:27
  SPEAKER_00: I I cannot thank you enough for coming on the show, being so open and vulnerable and and raw, because everyone listening needs to hear that shit, myself included.
• 1:12:36
  SPEAKER_00: So thank you so much.
• 1:12:38
  SPEAKER_00: This is one hell of an episode.
• 1:12:40
  SPEAKER_00: Um I don't even know what else to say, but but thank you for coming on.
• 1:12:44
  SPEAKER_01: And then on a high note, thank you guys.
• 1:12:46
  SPEAKER_01: Thanks for having me on.
• 1:12:47
  SPEAKER_00: Thanks.
• 1:12:47
  SPEAKER_00: I told you guys that was a good one.
• 1:12:49
  SPEAKER_00: I talked to Cody for about another 20 minutes or so after we finished recording, and um I mean he he is as raw and as real as it gets because of this experience that he just went through in his personal life, and um it's it's just a wake-up call.
• 1:13:05
  SPEAKER_00: It's just a wake-up call.
• 1:13:06
  SPEAKER_00: We all have certain areas of weakness.
• 1:13:09
  SPEAKER_00: Some of you, it may be maybe you're great with your relationships, you're great with uh your health and your fitness and your your parenting and all of friendships, but you're weak in the money game.
• 1:13:19
  SPEAKER_00: Okay, for him, he was strong in the money and business game and weak in the other areas.
• 1:13:24
  SPEAKER_00: We're all different, but you have to have awareness of it, and that's why I'm so stoked that you listened all the way through because hopefully you feel punched in the gut in a productive, positive way.
• 1:13:35
  SPEAKER_00: Thank you so much for listening.
• 1:13:36
  SPEAKER_00: Please share this episode with someone who needs to hear it.
• 1:13:40
  SPEAKER_00: Listen to it again, write those notes down, like I said.
• 1:13:43
  SPEAKER_00: Make sure that you grab your ticket to Power Day over at PowerdayEvent.com.
• 1:13:47
  SPEAKER_00: All the details are over there if you're like, what the fuck is it?
• 1:13:50
  SPEAKER_00: Powerdayevent.com next month in Salt Lake City, Utah.
• 1:13:54
  SPEAKER_00: It's going to be absolutely fantastic.
• 1:13:56
  SPEAKER_00: And make sure you go grab uh go check out BAMX, massiveAgentPodcast.com slash BAMX, where you can see some great courses like Canva 101, Objection Handling, the Ultimate Instagram course done by the the broke agent himself.
• 1:14:13
  SPEAKER_00: For as little as$10 a month, use code MASSIVE at checkout to get an extra 10% off that.
• 1:14:20
  SPEAKER_00: Craziness.
• 1:14:21
  SPEAKER_00: Thank you for listening.
• 1:14:22
  SPEAKER_00: Thank you for sharing.
• 1:14:23
  SPEAKER_00: Thank you for leaving us a review.
• 1:14:25
  SPEAKER_00: Thank you for uh engaging with me and sending me messages on Instagram and and you know commenting on the videos.
• 1:14:31
  SPEAKER_00: Thank you.
• 1:14:32
  SPEAKER_00: You guys keep me going, I will keep showing up and continue bringing badass guests like this, like Cody, and more.
• 1:14:39
  SPEAKER_00: Stay tuned.
• 1:14:40
  SPEAKER_00: Man, this shit's about to get good.
• 1:14:43
  SPEAKER_00: We're not even at episode 300 yet.
• 1:14:44
  SPEAKER_00: Let's frickin' go.
• 1:14:46
  SPEAKER_00: Take care.