Latest / Results Driven / Episode 182: I Flipped 1,500 Houses and Eventually Realized I Wanted to Be the Bank
Transcript
- 0:00SPEAKER_00: If I have a piece of advice for anyone who has money that this like isn't your niche, like real estate's not your thing, you gotta be careful.
- 0:08SPEAKER_00: Like you can still make great returns giving it to someone else who's doing this, just like you guys.
- 0:12SPEAKER_00: And I will say that's what ended up happening when I had everyone bring their friends with money.
- 0:16SPEAKER_00: They came to me and they're like, Can I just give you the money?
- 0:18SPEAKER_00: You know, I don't raise money from other people now to hard money, but it opened my eyes to the opportunity to do that at some point.
- 0:30SPEAKER_00: Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
- 0:36SPEAKER_00: I'm Tiffany High.
- 0:37SPEAKER_01: And I'm Josh Hyde.
- 0:38SPEAKER_00: And this is the Results Driven Podcast, where we share proven strategies to build systems, master sales, grow your team, and create a self-sustaining business with predictable income.
- 0:50SPEAKER_00: Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset shift you need to succeed.
- 0:58SPEAKER_00: Let's dive in.
- 1:03SPEAKER_01: Hey everyone, Chris Adden here.
- 1:04SPEAKER_01: Thanks for checking out the Private Lenders podcast.
- 1:06SPEAKER_01: We do appreciate it.
- 1:07SPEAKER_01: Special guests doing something different today.
- 1:10SPEAKER_01: We have Tiffany High from Results Driven, real estate investor, private lender, speaker, coach.
- 1:16SPEAKER_01: Did I miss anything?
- 1:17SPEAKER_00: Uh a mom.
- 1:18SPEAKER_01: A mom, of course.
- 1:20SPEAKER_01: Thanks for being with us.
- 1:21SPEAKER_01: No, I appreciate you taking the time.
- 1:23SPEAKER_00: Yeah, thanks for having me on.
- 1:25SPEAKER_00: I've uh and really enjoyed being in your mastermind as well.
- 1:28SPEAKER_00: I've met some really good friends in your world, so glad I've got to discover you guys this last year.
- 1:34SPEAKER_01: Oh, for sure.
- 1:34SPEAKER_01: Yeah, you just came into our little circle of private lenders in 2026.
- 1:39SPEAKER_01: And yeah, I hope you got the value you anticipated.
- 1:42SPEAKER_01: I mean, you you and your husband were a great addition to the June meeting, and it was really, really cool.
- 1:47SPEAKER_01: I mean, you know, we're gonna dive into some specific stuff about progression and business and everything else, but you seem to be adding stuff without subtracting that much.
- 1:56SPEAKER_01: Like you run a number of things simultaneously, which, you know, it's a little unique, especially amongst the mastermind group.
- 2:03SPEAKER_01: Like over time, people tend to like focus in a little bit on what it is.
- 2:06SPEAKER_01: I mean, I guess with the right team, you can juggle multiple things.
- 2:10SPEAKER_00: Yeah, I mean, it took 10 years to build it all.
- 2:12SPEAKER_00: I don't build something new unless I have leadership in place that run the whole show.
- 2:16SPEAKER_00: So you know, my first one was real estate, I'm not in the day-to-day at all anymore.
- 2:20SPEAKER_00: Second one was education, I'm like a face and on stage.
- 2:24SPEAKER_00: And then private lending, I have a team that operates the day-to-day of it.
- 2:28SPEAKER_00: But I mean, it took, it took a long time to like build one at a time for sure.
- 2:32SPEAKER_01: No, I bet.
- 2:33SPEAKER_01: How'd it start?
- 2:34SPEAKER_01: How'd your your real estate business start back then?
- 2:37SPEAKER_00: So I was like 29 or 30.
- 2:40SPEAKER_00: I'd buy in rentals and I was in corporate life.
- 2:42SPEAKER_00: I moved like eight states in eight years.
- 2:44SPEAKER_00: I was moving up the corporate ladder, love my career.
- 2:47SPEAKER_00: And then I'm the oldest of four kids.
- 2:50SPEAKER_00: Uh, I woke up one day, got a call that my brother had got diagnosed with cancer and he was in high school.
- 2:55SPEAKER_00: And being the oldest, and I'm much older than the other siblings, I'm like their second mother.
- 3:00SPEAKER_00: And so I had a very emotional reaction at the time and like quit my job on the spot and said, I'm moving home to help you guys, I'll do whatever.
- 3:07SPEAKER_00: So I left my career, like probably shouldn't have done that looking back, but I mean I wouldn't be here, I guess, if I didn't.
- 3:13SPEAKER_00: And then my parents live in northwest Ohio.
- 3:16SPEAKER_00: So jumped in my car, packed a pillow, blanket, some clothes, and left.
- 3:20SPEAKER_00: Literally the day I found out and left everything I had behind.
- 3:24SPEAKER_00: And when I had the two-hour drive north, Owens Corning Global, which is headquartered in my hometown, found out that I had just quit my job two hours before somehow.
- 3:33SPEAKER_00: And their vice president calls me and was like, hey, our headquarters is by your parents.
- 3:37SPEAKER_00: Would you be interested in coming work for us?
- 3:40SPEAKER_00: So it all worked out.
- 3:41SPEAKER_00: I was in my first week in the role, and that's actually I moved to Toledo-ish for that, like around that area.
- 3:46SPEAKER_00: And I met Josh, my now husband and business partner, the week that I started that job in that city.
- 3:51SPEAKER_00: So it all kind of came together.
- 3:53SPEAKER_00: And when I had met Josh, he his father was also passing away of cancer.
- 3:57SPEAKER_00: That's kind of how we connected.
- 3:58SPEAKER_00: But um, uh, so, anyways, I was with Hollens Corning and then eventually I was on a flight Monday through Friday all the time.
- 4:06SPEAKER_00: And I was like, Well, this isn't why I quit my job.
- 4:08SPEAKER_00: So I quit my job to be president with my family.
- 4:11SPEAKER_00: And I quit it again.
- 4:12SPEAKER_00: So, like five months in, it was Good Friday of Easter.
- 4:14SPEAKER_00: I looked across the room at the hop, you know, my brother hadn't left the hospital for a year.
- 4:19SPEAKER_00: And my father never left the hospital with him for a year.
- 4:23SPEAKER_00: And so I remember looking across at him, like, how have you he owned five companies?
- 4:27SPEAKER_00: So I'm like, how have you not gone back to work?
- 4:30SPEAKER_00: And he looked at me and said, Well, my teams have stepped it up so that I could be present.
- 4:34SPEAKER_00: And that was like a breaking moment for me that I was like, okay, I got to quit my job because if you can do this, I can do this too.
- 4:40SPEAKER_00: And I was a nanny, a bartender.
- 4:42SPEAKER_00: I was just trying to figure out life.
- 4:44SPEAKER_00: And then someone was flipping a house that I knew.
- 4:46SPEAKER_00: So I'm like, hey, I'm bored.
- 4:47SPEAKER_00: I don't got a job.
- 4:47SPEAKER_00: Can I come see it?
- 4:48SPEAKER_00: You know, he teaches me about private money.
- 4:50SPEAKER_00: Oh, yeah, I raise money from these people.
- 4:52SPEAKER_00: I take this house down, I flip it, I sell it for profit.
- 4:55SPEAKER_00: I'm like, cool, how'd you learn?
- 4:56SPEAKER_00: So I joined the program that he was in, figured it out, did 40 flips my first year.
- 5:01SPEAKER_00: Don't know how I did it.
- 5:02SPEAKER_00: Honestly, looking back, it was miserable, but I did it.
- 5:04SPEAKER_00: And then I realized, okay, I want to make a company out of this, right?
- 5:07SPEAKER_00: Like, this isn't about just doing deals.
- 5:09SPEAKER_00: I want to build a business out of it.
- 5:10SPEAKER_00: And so I then got further educated, hired some one-on-one coaches, did 165 deals my second year, 300 my third year, had lots of pain in between.
- 5:20SPEAKER_00: And then about five years in, a lot of people in the industry, like education, I would say back then, like wasn't as prevalent as it is today, probably, like with all the influencers and school groups and all this stuff.
- 5:32SPEAKER_00: And so people kept asking us for help and coaching.
- 5:35SPEAKER_00: And so I really didn't have a vision to start results driven.
- 5:38SPEAKER_00: It just happened.
- 5:39SPEAKER_00: And one day, like literally 15 people say, Can we come to your office and learn how you're training people and what?
- 5:46SPEAKER_00: And I said, sure.
- 5:47SPEAKER_00: So I have them come into my office and they're like, Hey, what is your education company's name?
- 5:51SPEAKER_00: I'm like, I don't really know.
- 5:52SPEAKER_00: And I was like, I don't have a website or anything.
- 5:54SPEAKER_00: And I was like, let's just call it results driven because all I care about is results.
- 5:58SPEAKER_00: So for like the first two years of educating people, I didn't have a website in LLC, nothing.
- 6:02SPEAKER_00: I just was doing it for a hobby.
- 6:05SPEAKER_00: And then um my mentor was like, hey, you really need to take this serious.
- 6:08SPEAKER_00: So, anyways, turn it into what it is today.
- 6:10SPEAKER_00: We've coached over 10,000 people across the country.
- 6:14SPEAKER_00: You know, we've been on multiple stages, held a hundred plus live events.
- 6:18SPEAKER_00: And then our real estate side is very self-sustained at this point.
- 6:21SPEAKER_00: I have a sales leader, COO, a manager that operates all of it.
- 6:25SPEAKER_00: And we do, we actually intentionally leaned up a little bit this year because I'm in a different season of my life, but we used to do 30 to 35 deals a month.
- 6:32SPEAKER_00: Now we do like around 15 deals a month.
- 6:34SPEAKER_00: So, anyways, that's kind of high level of out all the vote.
- 6:38SPEAKER_01: All right.
- 6:38SPEAKER_01: That that was a lot of business history in a short amount of time.
- 6:41SPEAKER_01: So I'm gonna have to pick my shots here.
- 6:43SPEAKER_01: How did you in year three source and finance 300 deals?
- 6:48SPEAKER_00: Thankfully, was in a program that was really good at teaching private money.
- 6:51SPEAKER_00: And so I was in Fortune Builders back in the day.
- 6:54SPEAKER_00: They're no longer in business, but um, they had such a big community and they would bring in people with 401ks and all that, and then teach you how to raise money from people in your network.
- 7:03SPEAKER_00: And so for the first five to eight years in real estate, I don't think I ever used a dime of my own money on any of my own flips.
- 7:10SPEAKER_00: And so I never really ran into cash flow problems because I got good in the beginning at raising private money.
- 7:16SPEAKER_01: How did you find 300 good properties to buy?
- 7:20SPEAKER_00: We go direct to seller.
- 7:21SPEAKER_00: So back in the day, it was, you know, cold calling and all that because it wasn't as regulated.
- 7:28SPEAKER_00: Today it's very different, you know, a combination of TV ads, PPC campaigns, some cold calling, but everything is direct to seller.
- 7:36SPEAKER_00: And we have gotten really niche this year on specifically courthouse data.
- 7:42SPEAKER_00: So your foreclosures, your probase, all that auctions, and we got away from like blanket marketing from the past.
- 7:49SPEAKER_00: And with AI now, like AI can get you super sniper approached, which has helped us lean up and have higher margins now.
- 7:56SPEAKER_01: Well, the data is so much more readily available now than it was back then.
- 8:00SPEAKER_00: Oh, yeah.
- 8:01SPEAKER_01: Public records, polling for multiple jurisdictions, everything else, like all the tools that we're using that weren't available back then.
- 8:07SPEAKER_01: All right, we'll move on in a second here, but I just wanted to pick that apart a little bit.
- 8:10SPEAKER_01: What did the team look like at 300 deals in a year?
- 8:14SPEAKER_01: And are these mostly flips or wholesales or both?
- 8:16SPEAKER_00: Both.
- 8:17SPEAKER_00: It's 50-50, probably.
- 8:19SPEAKER_00: I will say, like, we're pretty strategic about the time of year.
- 8:22SPEAKER_00: So, like right now, knowing we're gonna go into quarter four with a listing, we're not gonna flip as much because we get screwed every quarter four.
- 8:28SPEAKER_00: So we try to wholesale a lot now, moving into the end of the year, and then we'll start picking up more and more flips again in like January.
- 8:35SPEAKER_00: What was the question?
- 8:36SPEAKER_00: Sorry.
- 8:36SPEAKER_01: What did the team look like to do that kind of volume?
- 8:39SPEAKER_00: Yeah, so again, AI has evolved a lot.
- 8:43SPEAKER_00: And there's a deeper story behind how results driven and why they teach what we do.
- 8:48SPEAKER_00: So in my first couple of years, like any other business owner, it's like you hire people and it's like you're just figuring it out, right?
- 8:55SPEAKER_00: Like you don't of course, no one in the industry at that time was teaching infrastructure.
- 9:00SPEAKER_00: And what I mean by that is you get into the fortune builders of the world and all these newbie programs, and they do a great job teaching you how to do deals.
- 9:08SPEAKER_00: There is a big difference in skill sets you need in doing deals and building a business that does deals consistently.
- 9:15SPEAKER_00: And doing a business that does deals consistently is leadership, onboarding, training, tracking, like it's the infrastructure behind the people.
- 9:24SPEAKER_00: And I didn't have that in the beginning.
- 9:26SPEAKER_00: And so when we had our second year, I had like 12 closers on the floor, doing a half the revenue I do now with one closer and a sales manager and then VAs.
- 9:35SPEAKER_00: And I look back and my second year in the business, I won't go too deep into it, but um, it was miserable.
- 9:41SPEAKER_00: Like on the outside, yes, I was making a lot of money, but it was like the most miserable experience of my life.
- 9:48SPEAKER_00: And I had no control over my culture, my people, et cetera.
- 9:52SPEAKER_00: Long story short, went into like a really deep depression that year.
- 9:56SPEAKER_00: And I called my mentor and I was like, I cannot do this anymore.
- 9:59SPEAKER_00: Like, this is chaos.
- 10:01SPEAKER_00: And so he's like, You're making this too difficult.
- 10:03SPEAKER_00: Go into work tomorrow, let go of three force the people you should have never hired in the first place.
- 10:07SPEAKER_00: And I'm like, but I took responsibility because I'm like, to build a business, doesn't matter what it is.
- 10:11SPEAKER_00: You need onboarding, you need trainings, you need management systems, you need these things.
- 10:15SPEAKER_00: And I didn't have it.
- 10:17SPEAKER_00: And so I let go of three force the people that day.
- 10:20SPEAKER_00: Unfortunately, I went home and attempted suicide that day.
- 10:23SPEAKER_00: And I ended up in a mental institute for a few days.
- 10:28SPEAKER_00: I came out of that.
- 10:29SPEAKER_00: And my father, surprisingly looking back, was like, well, now you know what not to do.
- 10:34SPEAKER_00: So you're gonna keep going.
- 10:35SPEAKER_00: And I'm like, You want me to keep going?
- 10:36SPEAKER_00: I almost died.
- 10:38SPEAKER_00: And anyways, so I ended up hiring a one-on-one coach during that time because my father encouraged me to keep going.
- 10:45SPEAKER_00: And that one-on-one coach had exited multiple companies, not in real estate, but from building phone sales for.
- 10:52SPEAKER_00: So that was like his niche.
- 10:54SPEAKER_00: And so I had him come in and he, I now follow all the infrastructure he gave me years ago around onboarding, trainings, culture, how you manage people, all that.
- 11:04SPEAKER_00: And so me and Josh agreed at that time, crazy looking back, but I shut down the whole place for 90 days, rebuilt everything, all of our systems, trainings, processes, SOPs, everything.
- 11:16SPEAKER_00: When we opened and built the team that day, it took us the next 12 months.
- 11:20SPEAKER_00: We did 300 deals.
- 11:22SPEAKER_00: And ever since then, we have never needed more than like two closers to do twice the revenue because we finally had the infrastructure in place to run it like a legitimate business.
- 11:34SPEAKER_00: And I know like a lot of them, that's why results driven was Bill.
- 11:37SPEAKER_00: I always tell everyone like, I'm here to hand you the franchise without taking the equity because people don't teach business infrastructure in the real estate industry.
- 11:45SPEAKER_00: It's always around like how to get in front of the seller, how to talk to them, how to get the deal.
- 11:49SPEAKER_01: Right.
- 11:50SPEAKER_00: Building a business is a very different skill set.
- 11:52SPEAKER_01: Very much so.
- 11:53SPEAKER_01: No, I can relate to some of that based on early HMB years.
- 11:56SPEAKER_01: What like we didn't hire crazy, we just Jason and I just did everything ourselves to the point where it was really miserable.
- 12:02SPEAKER_01: And we knew how to do we knew how to lend.
- 12:05SPEAKER_01: We knew real estate investing, we knew how to do the right kinds of deals to the right people on the right kind of property.
- 12:10SPEAKER_01: But that doesn't mean that we had any of the infrastructure or systems.
- 12:14SPEAKER_01: Later on came people, it was just like a data entry mess of trying to run a business.
- 12:19SPEAKER_01: No, I could definitely relate on that.
- 12:21SPEAKER_01: Now, you mentioned something earlier when we were talking offline before we started that you had it in your mind early on that you wanted to move towards being a private lender eventually, which isn't that common.
- 12:33SPEAKER_01: I think people arrive at that.
- 12:34SPEAKER_01: Well, actually, I know they do because in the mastermind group they tell us this after they've had success, usually in real estate, sometimes in other unrelated businesses, that now that I've built up some money and I know what I'm doing and I've got a good team around me, I think lending and earning have it, you know, call it like it's partially active, partially passive lending is the income streams are.
- 12:54SPEAKER_01: But you arrived at that really early.
- 12:57SPEAKER_00: Yeah, when you're a newbie, especially with a W2, at least back then, I don't know how it is now because I'm not in this stage anymore, but the like fortune builders was big about like you build wealth through rentals long term and like how it is legacy and all that.
- 13:12SPEAKER_00: So I had some rentals and I was like, I don't want this.
- 13:15SPEAKER_00: Um, you know, at that time in my life, I didn't have a present parents when I was growing up beside a single mom.
- 13:21SPEAKER_00: And I was like, I want to be a mom at some point and I want to be present.
- 13:24SPEAKER_00: So that's my number one goal and all this.
- 13:26SPEAKER_00: So at the time, I was like, well, what is our lifestyle cost?
- 13:29SPEAKER_00: And then now that I understood private lending early in the game, I was like, that's the real play.
- 13:34SPEAKER_00: How do I make money to be present with my family while my principal balance is now funding my lifestyle without dipping into the principal balance?
- 13:44SPEAKER_00: That was always my goal from day one.
- 13:46SPEAKER_00: Now my life got more expensive over time.
- 13:49SPEAKER_00: So that number I had the stack got bigger.
- 13:51SPEAKER_00: But I'll just never forget.
- 13:52SPEAKER_00: I looked at Josh, I said, My goal is that I want the option someday to be a stay-at-home mom.
- 13:58SPEAKER_00: And so if I want to do it, then I want to say that I built the Nest egg to do it.
- 14:02SPEAKER_00: You know, I'm not, I'm probably not stay-at-home mom material, so I probably will never do it.
- 14:06SPEAKER_00: But I wanted the option and I wanted the ability to have the freedom to say that.
- 14:11SPEAKER_00: And so every year, although I did buy some rentals, when I did get rentals, it was like solidification that no, private lending is for me and I want to become my own bank for myself, for my next generation, et cetera.
- 14:24SPEAKER_00: So we hit that a couple of years ago.
- 14:27SPEAKER_00: And if there's one thing I can encourage people, it's like set the goal now that's five, 10 years out, which is hard to think of.
- 14:34SPEAKER_00: You don't need to like break down every quarter and all that.
- 14:36SPEAKER_00: I don't really believe in that because life changes too much.
- 14:38SPEAKER_00: But like for me, it was very clear.
- 14:40SPEAKER_00: I just want to be a present mom in order to do that.
- 14:42SPEAKER_00: I need to have money coming in without working.
- 14:44SPEAKER_00: And so you have two options.
- 14:46SPEAKER_00: You either buy assets or you private lend.
- 14:49SPEAKER_00: That was kind of the two ways I looked at it.
- 14:51SPEAKER_00: And it wasn't just private lend, it's like obviously investing money in a smart way.
- 14:54SPEAKER_00: So private lending is one of those ways.
- 14:57SPEAKER_00: And private lending for me, being the flipper and the operator, has been a big win for me because if you were never an operator, but you just had cash and you started lending, you might not be as good as us at catching bad scope of works, understanding the pockets and the areas, all that.
- 15:12SPEAKER_00: But since we flipped 1500 houses at this point, I can spot anything anywhere, at least in my own city.
- 15:19SPEAKER_00: And so it's just been a big win for us, like evolving into that.
- 15:23SPEAKER_00: And it gives me the confidence now to wake up to be like, well, if I'm too stressed too much, then I don't got to do this.
- 15:31SPEAKER_00: So I'm doing it for impact now, which feels really good.
- 15:34SPEAKER_00: Cause like for the last 10 years, it's been nothing but a stressful grind to get here.
- 15:38SPEAKER_01: Nothing but the build.
- 15:39SPEAKER_01: Yeah, I want to emphasize a couple things that you said there because I think are important for the audience.
- 15:43SPEAKER_01: Like one, Jason and I always have found lending to be a good balance of, like you mentioned, just personality-wise, we need to be productive.
- 15:51SPEAKER_01: We need progress and something to work on every day.
- 15:53SPEAKER_01: You gotta have a goal, you gotta have a mission.
- 15:55SPEAKER_01: But at the same time, you don't want it to be a 12-hour grind of a bunch of lower level stuff you don't need to be doing.
- 16:01SPEAKER_01: And we've found that building a private lending company offers that kind of balance.
- 16:05SPEAKER_01: And it's taken time and years and systems and everything else, but we get to come in here every day, do deals, manage the portfolio, grow the business, do the stuff we like to do, and our team is awesome.
- 16:15SPEAKER_01: And they do a lot of the keystrokes and take a lot of the heavy lifting off of us, but you still got to maintain control and decision making over certain things.
- 16:24SPEAKER_01: So I wanted to ask you, like, because these are investment decisions.
- 16:28SPEAKER_01: When it comes to either lending or the acquisitions, what are some of the key decisions that you andor Josh hold on to and do yourselves?
- 16:36SPEAKER_00: So the way our process works is our team has parameters.
- 16:41SPEAKER_00: Let's talk about the deals first.
- 16:43SPEAKER_00: So it moves up the chain.
- 16:44SPEAKER_00: I have a sales manager, he's been with us for five years, so he's well groomed now.
- 16:47SPEAKER_00: That didn't happen overnight.
- 16:48SPEAKER_00: It took two years to turn someone into a really good underwriter, especially with flipping.
- 16:53SPEAKER_00: Yep.
- 16:54SPEAKER_00: And so it gets in contract, in inspection.
- 16:57SPEAKER_00: Once my sales manager is like, this is what I think should happen.
- 17:00SPEAKER_00: It goes to Josh.
- 17:01SPEAKER_00: Josh makes all final decisions on if we will take a deal down or private lend, because he's was in construction before this, he's in charge of construction and acquisitions overall.
- 17:12SPEAKER_00: He's a COO.
- 17:13SPEAKER_00: So he makes all final decisions.
- 17:15SPEAKER_00: Money is never moved without Josh involved.
- 17:18SPEAKER_01: Okay, but he but the sales manager can take it under contract and through inspection.
- 17:23SPEAKER_00: Yes.
- 17:23SPEAKER_00: Okay.
- 17:24SPEAKER_00: So the way we lock up contracts, which is a little bit different than some people, and I would encourage everyone to do this.
- 17:30SPEAKER_00: We have a 21-day inspection period.
- 17:32SPEAKER_00: And the concept of that is week one, we get into the house, we get our scope of work, whatever.
- 17:37SPEAKER_00: Week two, we decide is this a deal or should we wholesale it?
- 17:40SPEAKER_00: Week three, we've either moved the deal, cancel the contract, or it's approved.
- 17:44SPEAKER_00: It gives us enough time to like make effective decisions.
- 17:47SPEAKER_00: But when you only have these short three to seven-day inspections, people tend to make rushed bad decisions, in my opinion.
- 17:55SPEAKER_00: So as long as the seller doesn't have to sell in seven days, like obviously those are different scenarios.
- 18:01SPEAKER_00: But for overarching, we never typically take a contract in less than 30-day closing.
- 18:07SPEAKER_00: So that way we never really skip a beat with checking all the boxes.
- 18:12SPEAKER_00: And then when it comes to private lending, we're still kind of working through this, but we built a website for our local community because right now we primarily lend in our backyard.
- 18:21SPEAKER_00: And what was happening was people would like message us, text us, call us, and email us, and we're like, dude, we can't keep track of this shit.
- 18:28SPEAKER_00: So we created a form online where you go to the website, you input your deal, you have to put all the information there.
- 18:34SPEAKER_00: I'm not lending it in general because I'm learning, like, if you can't follow those simple instructions, you're probably not a good operator in general.
- 18:41SPEAKER_00: So I learned that pretty fast.
- 18:43SPEAKER_00: So, anyways, it comes in and now it's more streamlined in my system.
- 18:47SPEAKER_00: What we've been doing now is Sage, my sales manager, takes a first look because what was happening, surprisingly, was like eight out of 10 deals that get sent to us.
- 18:56SPEAKER_00: I'm like, how do you think this is a deal?
- 18:58SPEAKER_00: And it's actually we've now converted them to coaching students because we're like, let me show you how you're about to lose 20 grand and why you need coaching.
- 19:07SPEAKER_00: And so we've been able to convert some of those folks so that they don't go lose money.
- 19:12SPEAKER_00: And that was surprising for me.
- 19:13SPEAKER_00: I did not expect that going into private lending to have like that many people submit bad deals.
- 19:19SPEAKER_01: Oh, yeah.
- 19:19SPEAKER_01: It's rampant.
- 19:20SPEAKER_00: It's a lot of yeah, I did not like expect that at all.
- 19:24SPEAKER_00: So, what I've done locally to overcome some of these hurdles is I started a local meetup and I'm training them on these things.
- 19:32SPEAKER_00: I'm training them how to get the deal.
- 19:34SPEAKER_00: I'm training them how to submit a package to a private lender so that way they know what they're doing.
- 19:39SPEAKER_00: Because people might submit an email or something to us, and I'm like, how can I make a decision on what you just sent me?
- 19:44SPEAKER_00: Like, if this is how you're operating, I do not want money backed by you at all.
- 19:49SPEAKER_00: So it's just teaching people the fundamental skill sets of the business.
- 19:54SPEAKER_00: And then what happens out of it is we lend the deal, we JV the deals.
- 19:58SPEAKER_00: So win-win all around.
- 20:00SPEAKER_00: And we've taken more of an educational approach to private lending since we are coaches.
- 20:04SPEAKER_01: Yeah, a couple more things to get into there.
- 20:06SPEAKER_01: So we've always battled with and other lenders of the mastermind group of what is the right origination process to be efficient to try to make win-win deals for the borrower and for us.
- 20:17SPEAKER_01: And yes, in a perfect world, I agree that there's one place to submit a loan request, and it is right here and follow instruction and do it right, and we'll get back to you and run our process.
- 20:29SPEAKER_01: But the reality is that Yeah, I mean, the reality is that you know different personality types operate in different ways.
- 20:35SPEAKER_01: And if we get a loan app, awesome.
- 20:37SPEAKER_01: If somebody emails us, cool.
- 20:39SPEAKER_01: Like our first step, and we're constantly hammering this into our originator partners, is that get on the phone with somebody, have a conversation.
- 20:48SPEAKER_01: They're all high-level underwriters and investors themselves, have a conversation and see if we can make a deal.
- 20:54SPEAKER_01: And that's our first goal.
- 20:56SPEAKER_01: Now, it's not like everybody always follows it.
- 20:59SPEAKER_01: Like, you know, uh salespeople, loan originators, they can get lazy in their process and just start going back and forth on emails, which is like the worst way to sell or originate or everything else.
- 21:08SPEAKER_01: But we've always battled that too.
- 21:10SPEAKER_01: Like, what's the right and then other people in the mastermind group are like loan application only, and then it comes right into our CRM and then it goes to our salespeople and then follows that process.
- 21:19SPEAKER_01: In that process, are we losing people who just want to have a conversation with a decision maker?
- 21:24SPEAKER_01: I don't know.
- 21:25SPEAKER_01: Maybe, maybe, but definitely something that we've always battled too.
- 21:29SPEAKER_01: And then I also wanted to emphasize something you say.
- 21:32SPEAKER_00: You guys thought about I don't know if you already do this.
- 21:34SPEAKER_00: Do you guys do free education around how to raise private money?
- 21:38SPEAKER_01: So we've done a lot of education over the years on real estate investing, similar to what you've done with the meetup group.
- 21:45SPEAKER_01: And we haven't run our offline meetup group in a few years now.
- 21:48SPEAKER_01: We'd like to.
- 21:49SPEAKER_01: But what you said before about tying in the lending to the education seems like a total no brainer and nobody does it.
- 21:57SPEAKER_01: If you're a a lending company with an education company.
- 22:00SPEAKER_01: On top, and you're training local investors on how to buy and this and that and giving them the content and the education and maybe even the ongoing coaching that they need, and you're their source of capital, seems like a no-brainer.
- 22:12SPEAKER_01: And that's something that we've been getting a little more serious about.
- 22:16SPEAKER_01: We could easily uh revamp our meetup group, which still has probably 3,000 online members, and we could get 200 people to a meeting.
- 22:25SPEAKER_01: Those that's how it ran a few years ago.
- 22:27SPEAKER_01: Maybe even work in like a school group or something like that, and then have that flow down to potential leads of people that were affecting by coaching and training and everything else, as people we can lend to.
- 22:39SPEAKER_01: So that's something that we could uh build out more.
- 22:43SPEAKER_01: I think you're ahead of the game on that.
- 22:45SPEAKER_01: But industry wide, nobody's doing that.
- 22:48SPEAKER_01: Lenders are just marketing.
- 22:50SPEAKER_01: Here's the leverage we can give, here's the rate and points, that's it.
- 22:54SPEAKER_01: And when it comes to the private people, it's like, oh hey, we're local and we close real fast.
- 22:58SPEAKER_01: And that's it.
- 22:59SPEAKER_01: So I th I think that's a a huge advantage.
- 23:03SPEAKER_01: And I also appreciate the fact that you lend where where you know and where you've bought 1,500 properties, and you don't need to expand to Texas or Denver, right?
- 23:16SPEAKER_01: There's enough to be done at home, which is something that Jason and I have been hammering home to our lender audience forever.
- 23:24SPEAKER_00: Yeah, it it just depends on how much money you want to lend out.
- 23:27SPEAKER_00: I for now like just want to lend my own money.
- 23:29SPEAKER_00: Don't get me wrong, I still sometimes like because you always want to keep it working.
- 23:34SPEAKER_00: So there'll be like a gap in time and you're freaking out because you want to get a deal sent to you or whatever.
- 23:39SPEAKER_00: We're lucky because we also do our own deals.
- 23:41SPEAKER_00: So worst case, we put it against our own deal or whatever.
- 23:44SPEAKER_00: Yeah.
- 23:44SPEAKER_00: Now, the part that I'm trying to get comfortable with at some point, and I'm I'm not ready or in a rush, is that I do have a massive national coaching company.
- 23:53SPEAKER_00: But when I first got started, I went outside of my zone.
- 23:57SPEAKER_00: And I remember my first million dollars I lended.
- 24:00SPEAKER_00: I lost 300,000 on a syndicate deal and never do that again.
- 24:03SPEAKER_00: And then the other ones, it was because I just there was still a little bit of trust there because I knew them.
- 24:08SPEAKER_00: And then I didn't really know the market.
- 24:10SPEAKER_00: And the beauty about being in my own backyard, especially still operating some level of real estate, is my team can look at photos and an address and know immediately if this is a deal.
- 24:20SPEAKER_00: I can't do that in another market.
- 24:22SPEAKER_00: So there's a next stage of risk happening.
- 24:24SPEAKER_00: But the reason why we stay in front of people is just from the meetup.
- 24:27SPEAKER_00: Like we're always top of mind.
- 24:29SPEAKER_00: Now I'll tell you a lesson learned because you said school group.
- 24:32SPEAKER_00: School sucks.
- 24:33SPEAKER_00: I'm in school, I have a school group.
- 24:36SPEAKER_00: The avatar in the audience is on Facebook because realtors have Facebook pages, all that kind of stuff.
- 24:42SPEAKER_00: And we try to really approach the realtor or the person who's done their first five flips who like doesn't know how to raise money at all yet or get money or whatever.
- 24:52SPEAKER_00: And we try to be like that faster solution for them.
- 24:54SPEAKER_00: Now at the meetup, I also have a broker there who brokers all this hard money lending.
- 24:59SPEAKER_00: But we educate every few months on the difference between the two and why you would use them because I'm making an affiliate off them anyway.
- 25:06SPEAKER_00: So whether they go with them or me, like, don't care, I'm making money, right?
- 25:10SPEAKER_00: But I'm doing the selling for it.
- 25:12SPEAKER_00: And one thing I probably, if I was more intentional, would do every month is like a 45-minute learn how to raise private money free webinar with the group.
- 25:20SPEAKER_00: And then what I did, this is a big one if, and I encourage everyone to do it.
- 25:23SPEAKER_00: That's private lending.
- 25:24SPEAKER_00: So on my first meetup that I decided to teach private lending, I said, hey guys, you know, I found out that no one was raising money.
- 25:32SPEAKER_00: And I said, What I want you to do at the next meetup is I'm gonna do this live in front of you.
- 25:37SPEAKER_00: I want you to bring three friends who do not have anything to do with real estate, but have old 401ks or money sitting in a bank that, or I don't care who they are, just bring them.
- 25:46SPEAKER_00: And I'm actually gonna teach them about how they can self-direct 401ks and get them to desire private lending.
- 25:54SPEAKER_00: What will happen is when you guys leave this room, they're then going to ask you more about it because they know you're the investor.
- 26:02SPEAKER_00: So I'm gonna intentionally help you screw the conversation.
- 26:05SPEAKER_00: We did that and like everyone listened.
- 26:07SPEAKER_00: They all brought these people.
- 26:08SPEAKER_00: I brought a self-directed company in to help, you know, answer technical questions.
- 26:14SPEAKER_00: And the beauty was those people with money, they obviously some obviously talked to their investors, but then they came to me.
- 26:20SPEAKER_00: I'm the speaker, so that I'm the one that they ended up trusting at the end of it.
- 26:24SPEAKER_00: So they're like, hey, I do want a private land.
- 26:26SPEAKER_00: This is interesting.
- 26:27SPEAKER_00: I don't know if I know how to underwrite, do all these things.
- 26:29SPEAKER_00: Like, what do I do?
- 26:31SPEAKER_00: And when I held that, I was like, I don't know.
- 26:34SPEAKER_00: Give me your money at some point.
- 26:36SPEAKER_00: Like, I don't know what to do.
- 26:37SPEAKER_00: Cause like I don't teach you like if you're not trying to flip a house, I'm not your coach.
- 26:40SPEAKER_00: So I ran into that roadblock, but it was a great way to get people in a room talking about money.
- 26:45unknown: Yeah.
- 26:45SPEAKER_00: And then the next topic we taught how to raise private money, and we were very specific how to pitch, dah, dah, dah.
- 26:50SPEAKER_00: And I was like, and guys, I'm a private lender, so come practice on me.
- 26:54SPEAKER_00: So they all line up after the thing and they're all practicing the pitch on me.
- 26:58SPEAKER_00: And then that got them familiar with sending me their deals.
- 27:00SPEAKER_00: So it like worked out great because I'm combining education, giving value, and then I'm top of mind.
- 27:05SPEAKER_01: Now that's an interesting approach because you're kind of teaching them how to source what you could do for them.
- 27:11SPEAKER_01: And then maybe they go and execute on raising private capital, maybe they don't, and then they come back.
- 27:16SPEAKER_01: But it is an interesting part of the real estate investing industry, the whole, you know, investor-to-vestor private lending stuff.
- 27:23SPEAKER_01: Because with our audience, you know, doing all the content around lending and YouTube and everything else that we do, we have a lot of people that reach out to us and we're like, oh, yeah, so I did this deal and this deal and this deal.
- 27:34SPEAKER_01: I think they might be in trouble.
- 27:36SPEAKER_01: What do we do wrong?
- 27:37SPEAKER_01: And I'm like, oh man, should have called us before.
- 27:41SPEAKER_00: Yeah, I will say if I have a piece of advice for anyone who has money that this like isn't your niche, like real estate's not your thing.
- 27:49SPEAKER_00: You gotta be careful.
- 27:50SPEAKER_00: Like, you can still make great returns giving it to someone else who's doing this, just like you guys.
- 27:55SPEAKER_00: And I will say that's what ended up happening when I had everyone bring their friends with money.
- 27:59SPEAKER_00: They came to me and they're like, Can I just give you the money?
- 28:01SPEAKER_00: You know, I don't raise money from other people now to hard money, but it opened my eyes to the opportunity to do that at some point.
- 28:08SPEAKER_00: But yes, because like I can't imagine being a doctor and like play lending my money and then never having 150 times that I've ever underwritten a deal.
- 28:16SPEAKER_00: Cause like it takes reps to really understand how to underwrite a deal.
- 28:20SPEAKER_01: Well, I'm sure there's some people listening right now or watching that are like, man, all right, let's start with one thing not to do and don't have your borrower structure the loan for you.
- 28:29SPEAKER_01: It's not the way banks do it.
- 28:31SPEAKER_01: But a borrower would be like, oh yeah, so you find 100% of this, and then I'm going to accrue all this interest, you'll get it at the end.
- 28:37SPEAKER_01: Here, here, let me do the loan docs for you.
- 28:39SPEAKER_01: You don't really need any other underwriting docs.
- 28:41SPEAKER_01: Everything's good to go.
- 28:42SPEAKER_01: I'll just pay you off once I resell the okay.
- 28:45SPEAKER_01: So banks don't let borrowers dictate the terms, and neither should private lenders.
- 28:50SPEAKER_01: Even if you're just a one-person show with a self-directed IRA or a full-time kind of private lender, definitely need to set your own underwriting parameters in terms of loan-to-value, borrower qualifications, scope of work, your documents prepared by your lawyer.
- 29:08SPEAKER_01: So just some real, real low-hanging fruit and like 101 takeaways for people listening today.
- 29:15SPEAKER_00: Yeah, I just see too much.
- 29:16SPEAKER_00: Now that I'm in the lending game, I don't think I could effectively do it without having flipped what I've done over the years.
- 29:25SPEAKER_00: And I mean, even to this day, and I think you guys know this, like I've given a few million dollars to other hard money lenders because like I just don't have the time right now to, you know, I'm still making nine, 10% returns.
- 29:35SPEAKER_00: So it's like, okay, 9, 10% with someone who knows what they're doing and does this for a living, has a team, whatever, to me getting an extra 2% or whatever and a couple of points.
- 29:46SPEAKER_00: So don't get me wrong, the spread is definitely worth it if you know what you're doing.
- 29:50SPEAKER_00: But it's like, it's not necessarily passive.
- 29:53SPEAKER_00: And if you aren't from real estate to evaluate that deal, like I think there's more risk in that than just giving the money to a hard money lender that's you're gonna make eight to 10%.
- 30:02SPEAKER_00: Oh, yeah, you know, on your money.
- 30:04SPEAKER_01: No, that's a good pass.
- 30:05SPEAKER_01: It's a great passive option.
- 30:06SPEAKER_01: And a lot of people who come into the mastermind end up doing stuff like that is that they're full-time in another business and they have a good net worth.
- 30:13SPEAKER_01: Investing through a professional full-time lender is a great option, as opposed to just doing your own deals direct to borrowers without having the background to do so.
- 30:24SPEAKER_00: Yeah, I agree.
- 30:24SPEAKER_00: Yeah, I'll let you guys do all the work so I can relax.
- 30:28SPEAKER_01: Yeah.
- 30:28SPEAKER_01: Yeah.
- 30:29SPEAKER_01: I mean, and that has kind of been part of the progression over the years is that our capital investors who have been with us for so long, they make a great rate of return.
- 30:37SPEAKER_01: And as time goes on, we have more and more of our own capital, and that's a great thing too, and a big part of a long-term plan.
- 30:42SPEAKER_01: But they've had a great gig.
- 30:44SPEAKER_01: They have to do very little, they make nice money.
- 30:46SPEAKER_01: So, yeah, I mean, different ways to do it.
- 30:48SPEAKER_01: But you know, I would I would definitely, definitely suggest that people be super careful of just doing direct deals to real estate investors that you come across in a meetup group or, you know, just in the community or online, especially, whatever it might be.
- 31:01SPEAKER_01: Be very, very careful with that stuff.
- 31:03SPEAKER_01: Yeah.
- 31:04SPEAKER_01: So, all right, let's move forward a little bit.
- 31:06SPEAKER_01: With your acquisitions business, coaching, lending, where do you see it going?
- 31:11SPEAKER_01: Like, where do you want it to be in like three to five years?
- 31:14SPEAKER_00: Good question.
- 31:15SPEAKER_00: The real estate side, the reason why I launched the meetup is to do deals with people.
- 31:20SPEAKER_00: Like I'm in this stage of life where for the last eight, 10 years, like I had my goal is to make millions and millions of dollars a year.
- 31:27SPEAKER_00: And I did that.
- 31:28SPEAKER_00: And then I woke up, I had started having kids, and I was like, okay, I hit the goal.
- 31:33SPEAKER_00: And I don't know if you've been through like already going through this or gone through it, but like every time you hit a financial goal, you're like, okay, I gotta go after more.
- 31:39SPEAKER_00: And so the next goal is the next goal, it's the next goal.
- 31:42SPEAKER_00: Of course.
- 31:42SPEAKER_00: And, you know, I I always ask myself, like, when is enough enough?
- 31:47SPEAKER_00: Or at least appreciate the season I'm in.
- 31:51SPEAKER_00: And right now I'm in the season of having a five-year-old and a two-year-old, and I want to do what's right for like, I always say, like, presence with my kids is my legacy.
- 32:00SPEAKER_00: Like, obviously, I want to leave money, whatever, but I would rather be present with them.
- 32:03SPEAKER_00: And so I'm trying to right size them, is what I'm saying.
- 32:07SPEAKER_00: Like, what I call it is like, how can I make sure it's a right size where I'm not grinding it till midnight and I have the right people in place.
- 32:14SPEAKER_00: There's higher margins, like lean and keep it all.
- 32:16SPEAKER_00: And there's a balance because when you go lean, you have to do a lot more actual day-to-day stuff.
- 32:21SPEAKER_00: I would say I'm doing more now than what I used to when I had a whole executive staff at my company because I recently leaned out education.
- 32:28SPEAKER_00: So we had coached over 10,000 people and results driven.
- 32:31SPEAKER_00: And this last three months, we decided we're going down to 40.
- 32:35SPEAKER_00: So, like, we are no longer just like accepting anyone.
- 32:39SPEAKER_00: You have to have very strict criteria to get in with us at this point.
- 32:42SPEAKER_00: And that's one because it's fulfilling for me.
- 32:45SPEAKER_00: I'm around higher level thinkers.
- 32:47SPEAKER_00: They are people that have tons of experience.
- 32:49SPEAKER_00: So, like, if I do think I'll private lend outside of my market, I'll do it with these guys who I'm actually coaching and they're following my own system.
- 32:56SPEAKER_00: And I run that side.
- 32:58SPEAKER_00: Josh runs the real estate side.
- 33:00SPEAKER_00: You know, Josh is, I'm older than him.
- 33:02SPEAKER_00: I am a cougar.
- 33:03SPEAKER_00: So he is only 33.
- 33:05SPEAKER_00: And he ain't done, right?
- 33:07SPEAKER_00: So, like, he loves the real estate side, the grind, whatever.
- 33:10SPEAKER_00: So, you know, he runs that side.
- 33:12SPEAKER_00: And private lending, we realized that the amount of money we have to lend, it was a lot more work than we anticipated.
- 33:20SPEAKER_00: So we decided to take half of that money and give it to other hard money lenders that we trusted and just make more passive money.
- 33:26SPEAKER_00: And then we keep a couple, two, three million right now out with local guys because that's not as hard to keep out at this point, at that only that amount.
- 33:35SPEAKER_01: Yeah, sure.
- 33:35SPEAKER_00: So I think in like three to five years, though, we'll shift more and more money to actively do the lending ourselves instead of just giving it to the hard money lenders.
- 33:44SPEAKER_01: That makes sense.
- 33:45SPEAKER_01: Sounds like a good three to five year horizon.
- 33:47SPEAKER_01: Do you find that going back to you know different seasons where you find yourself switching gears?
- 33:51SPEAKER_01: Sometimes you'll have a little phase where you're like, I'm gonna enjoy it.
- 33:54SPEAKER_01: I'm gonna step back a little bit, I'm gonna go a little easier.
- 33:57SPEAKER_01: And then you find yourself changing your mind and you're like, man, I want to get back to this.
- 34:01SPEAKER_01: I want to grow this.
- 34:02SPEAKER_01: I don't want to go.
- 34:03SPEAKER_01: I've been going through that same stuff, kind of especially this year.
- 34:06SPEAKER_01: In the past, it was all build, it was all grind, it was all push, but like without burning yourself out, without like having a miserable time.
- 34:12SPEAKER_01: And then just recently, I've started to feel a little bit of uh, you know, my my kids are teenagers, some in college, some going to college, and maybe time to like step back a little bit, play a little more golf.
- 34:23SPEAKER_01: And then the next month, I'm like, nah, uh Jason, I are building this and that and that.
- 34:27SPEAKER_00: And like I had an identity crisis like three weeks after I made cuts and I was like, all right, Josh, we're gonna be more present, we're gonna do all this.
- 34:35SPEAKER_00: Then three weeks in, I was like, yeah, this, I got I mean, I'm a builder.
- 34:38SPEAKER_00: So I immediately start building something.
- 34:40SPEAKER_00: My mentors right now are like, what are you doing?
- 34:42SPEAKER_00: You literally said you wanted to step back for a while.
- 34:45SPEAKER_00: And I'm like, I don't know how.
- 34:46SPEAKER_00: I'm like, I don't know what that even looks like.
- 34:48SPEAKER_00: What am I supposed to do?
- 34:49SPEAKER_00: Sit on the couch and do nothing?
- 34:50SPEAKER_00: Like, I don't understand.
- 34:52SPEAKER_00: And so I am going through a weird phase right now of like, you're still young, you should keep going.
- 34:59SPEAKER_00: Like, now's the time.
- 35:01SPEAKER_00: I don't know.
- 35:02SPEAKER_00: There's no right answer.
- 35:03SPEAKER_01: There's no right answer, and I think it's a great problem to have.
- 35:05SPEAKER_01: The fact that we get to run our own companies and families and work with friends and everything else is like, you know, sometimes you grind a little bit too much, sometimes you chill a little bit too much, and it's a win-win.
- 35:14SPEAKER_01: Like these are fine problems to have, all things considered.
- 35:18SPEAKER_01: Um, cool.
- 35:20SPEAKER_01: I think we are about to wrap.
- 35:22SPEAKER_01: Yeah.
- 35:22SPEAKER_01: Anything else to offer to the audience?
- 35:24SPEAKER_01: Maybe contact information, what people should reach out to you for.
- 35:26SPEAKER_00: Um, I mean, if you're in real estate and you're flipping wholesaling or anything like that as well, we have results-driven REI, but my Instagram's really where like most people start following me.
- 35:36SPEAKER_00: But we have resultsdriven REI.com if you want to check out our coaching side.
- 35:40SPEAKER_00: If you happen to need advice on a deal local here in Columbus, Ohio or something, you're welcome to message me.
- 35:46SPEAKER_00: But I just put out tons of free stuff every day.
- 35:48SPEAKER_00: I have a YouTube, a podcast.
- 35:50SPEAKER_00: They're all results driven, Brandon.
- 35:51SPEAKER_01: So awesome.
- 35:52SPEAKER_01: No, again, thank you for taking the time.
- 35:54SPEAKER_01: We appreciate you being here.
- 35:56SPEAKER_01: Tiffany, hi, everyone.
- 35:57SPEAKER_01: We should run it back again soon.
- 35:59SPEAKER_00: All right.
- 35:59SPEAKER_00: Thanks for having me on.
- 36:00SPEAKER_01: Absolutely.
- 36:01SPEAKER_01: Thanks for being here.
- 36:03SPEAKER_00: This episode has come to an end, but your journey continues.
- 36:07SPEAKER_00: Subscribe to the podcast so you never miss an episode.
- 36:11SPEAKER_00: If you want direct help from us, join our free community by visiting the results driven podcast.com.
- 36:17SPEAKER_00: That's the results driven podcast dot com.
- 36:20SPEAKER_00: We'll see you next time on the results driven podcast.
- 36:23SPEAKER_01: We'll see you next time on the results driven podcast.