BiggerPockets Real Estate Podcast - 644: 50 Properties in 6 Months Using the Supercharged BRRRR Strategy w/Chad Beeman

Episode Date: August 4, 2022

The BRRRR method (buy, rehab, rent, refinance, repeat) is commonly known among real estate investors as one of the fastest ways to build a portfolio of rental properties. The beauty of the BRRRR strategy is that it takes less time and money to get properties to cash flow with baked-in appreciation. But what if you were to ramp up the BRRRR method, so instead of doing a BRRRR every year, you did it 125 times a year. Sounds a little insane, right? Meet the man behind the madness, Chad Beeman, who has (and this is not an exaggeration) bought and BRRRRed fifty rental properties in the past six months. This is a staggering amount of properties to buy in such a short amount of time. The craziest part? Chad is planning on purchasing another seventy properties over the next six months! So how is he able to buy so many properties, scale so quickly, and do so without losing his balance? Chad walks through his small team, system, and thought process that helps him stay so successful. He’s had some blunders in the past (like spending $30K rehabbing the wrong house) but has thought of them as “tuition” when investing in real estate. Thanks to these mistakes, he’s been able to grow faster, build more than a million dollars worth of appreciation, and shoot well past financial freedom in his real estate investing journey. In This Episode We Cover: Why the BRRRR method is perfect for those who are strapped for cash but want to build wealth How the current housing market is affecting BRRRR deals and the art of making multiple offers Becoming an “accidental millionaire” and how real estate wealth grows in the background Building a small team, learning to outsource, and developing the “Who Not How” mentality  Real estate partnerships and how they can allow you to buy more properties using less money Why you should always double-check you’re at the right house BEFORE doing a renovation And So Much More! Links from the Show BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast Get Your Ticket for BPCon 2022 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram Rob's BiggerPockets Profile Rob's Youtube Rob's Instagram Rob's TikTok Rob's Twitter Listen to Our Interview with “Who Not How” Author Dan Sullivan Use the BiggerPockets Calculators to Analyze Your Next Rental Property Books Mentioned in the Show BRRRR by David Greene Who Not How by Dan Sullivan Connect with Chad: Chad's Instagram Chad's LinkedIn Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-644 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is the Bigger Pockets podcast show 644. The key is, you know, people, you know, having the right people around. So what we did figure out is we've got to hire a rock star team. It will make the difference, you know, hiring people that have that owner mentality that really truly care. Once we kind of figured out, we have to bring on the right people, it really solved the, you know, the majority of our majority of our issues. Because we had a lot of bad stories in between and to hire those key people. people and, you know, people that do genuinely care. It makes all the difference in the world.

What's going on, everyone? This is David Green. You are host of the Bigger Pockets Real Estate podcast, joined today by my lovely co-host, Rob Abasolo, where we get into a fantastic interview with today's guest, Chad Beeman, who has bought over 50 properties over six months using the Burr Method in Nebraska. We get into some really cool stuff like how to scale, how to build systems, how he's using a mentorship program to both teach people real estate as well as find him deals. And then how he manages the chaos of that many properties.

You also want to listen all the way to the end because there is a hilarious and scary story about rehabbing the wrong house. It's definitely something I haven't heard before. You're not going to want to miss that. Rob, what did you think about today's show? Yeah, I think it's a really interesting journey because he talked about scaling quite a bit. And yeah, man, dude, this guy, he's already. done 50 deals this year. And I think the majority of them, if not all of them, were bird deals.

And he says he wants to get up to 125 by Christmas. So another 75. So it's like, okay, I've got six months. I'm going to do 50 deals. That's already like, man, you're crazy. And then to say, I'm going to do another 75 in the next six months. I just don't even know, man. That's, that's goals. Let's check in on me next year. See how many houses I flipped. I don't think it's going to be 125, though. This is how I pictured Jaco Willink working out. He's like, I just did at 700 burpees. I'm going to do another 400 before midnight type of thing. And that's how this guy's buying houses.

Yeah, man. I mean, we just, we're in escrow right now on a 20 unit hotel, or motel, really. And we're going to do a whole rehab on that and turn it into like a little glamping area. The motel is going to be rehab to be a boutique Airbnb. We're hoping to build some A frames and eirstream glamping units out there too. And that's, that's already a hard enough project that's, you know, probably going to be about four to six months. So to quintuple that, man, that's, it's pretty mind-boggling. But yeah, we really get into the team building because I think this is something that is really important for people to figure out who you need on your team and when do you need them to be able to really scale to that next level.

Absolutely. Before we get into the interview, we're going to get into today's quick tip, which is get your tickets to Bigger Pockets Conference 2022 in beautiful San Diego. You can head over to biggerpockets.com slash events and you can buy them before they sell out. They will sell out and you will be sad because I've never seen an unhappy person at BPCon. Rob's going to be there. You guys are going to get to see him in person. He's even better looking in person than he is on camera. As hard as that is to believe.

And there may even be a Brandon Turner siding. Not sure about that yet, but I will certainly be there. And I'll probably put on a fake beard or something if Brandon doesn't go and see if I can trick everyone into thinking I'm him. I'll grow it out. I'll grow mine out just for the conference. I don't know if I'm going to get to brand then levels, but I could probably, you know, I can probably scruff up a bit. Yeah.

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Chad Beeman, welcome to the Bigger Pockets podcast. How are you today? Good, guys. Thanks so much for having me. Yeah. So, I mean, your story is pretty incredible before we get into how quickly you scaled. Can you give us a rough idea of the big picture? What does your portfolio look like right now? Yeah, you bet. So we have 91 single family homes. Majority of those are all in Omaha. We have a short-term rental. We just picked up in Destin, Florida. And we have one property in Lahaina, Maui, that it's just kind of an old home. We lived there about five years ago, and so we kept that and just kind of long-term rent that one. Are you able to short-term rents a one in Lahaina?

Is it zoned for that? No, the neighborhood in Lahaina is brand new, and that was one of the big deals. They just wouldn't allow that because, you know, all the locals keep getting pushed out, you know, from all this money coming in from all over, you know, buying up properties. And so it's really there for locals. And I was living there at that time, so I was able to take advantage of that. So you sort of walked into a pretty good season then in the Destin stuff, right? Because this is the hot season out there. So if you said you just picked it up. Yeah, my manager, the girl that helps manage all of our properties, it's just kind of been a dream for her.

So we were at lunch a few weeks ago. And I just said, you know, what can I do to help you? And she's like, well, get me a house in Destin. And I'm like, honestly, I mean, if the numbers work, you know, show me some stuff. And so she brought me like an e-cap. And I was like, you love it? And she's like, I love it. So we went ahead and went after it and ended up getting it. So how's that one been performing for you? Well, we're just literally closing. I think we just closed. two days ago. So I will tell you in a few months. Yeah, I'm actually buying in Florida myself. I just got back from a trip out there and was looking at some stuff. So

anyone looking to get out of the Florida market? Message one of us three. We might be looking to buy your property. All right. So you've got 91 properties. And tell me what you've been doing in the last six months. Yeah. So the last six months has been a little bit of a unique turn for us. You know, we started the first, I've been purchasing properties for about 15 years now. In the first seven years were really the traditional way. We really had no idea what we were doing. We continue to, you know, just kind of leave, you know, every time we buy a property, we were kind of dead broke.

You know, we had no money left over and just kind of rents and repeat that. I think we bought our first five properties in about seven years. And so we kind of unintentionally, after about year seven or eight, kind of unintentionally ran into the Burmett. We had no idea what we were doing. We didn't mean to. We just kind of fell into kind of the concepts around that. And ever since then, it was kind of a light bulb moment. And we kind of, you know, started accumulating properties quite a bit faster, especially the last six months through kind of a different model. But we do have a gold hit 125 properties by Christmas. And, you know, we're just trying to kind of cruise along with that. It's, it is kind of amazing how Burr can supercharge the pace that you buy real estate without increasing the risk. I remember the same thing happened with me when I realized, like, you know, you get into this rhythm of I bought this group, they're rehabbing, I buy the next group, they're rehabbing, then the first group is done and you're refinancing it and buying more properties. Then the second group is done? Is that what you found is a similar rhythm or has

it just been pure chaos? There actually has been a rhythm. It's not that I'm slowing down. It just like everything kind of like comes in, you know, in drones. It just, all of a sudden I have like eight properties that, you know, I'm getting approached by and then like a month and a half goes by. And, And I don't get an email from any of my realtors. And so it is kind of unique how there's almost a heartbeat to it, kind of a real rhythm. So do you think you could like just walk us through your trajectory on this a little bit? Because I know you're sort of, you've done the 50 deals in the last six months, which I don't want to glaze over that.

We'll get to that in a second. That's pretty, pretty nuts. And you said you want to have 125 by Christmas. Does that mean you want to have 75 more properties in the next six months? Is that, is my math correct there? Yeah. So our goal, you know, how we're kind of purchasing properties is, you know, quite a bit different. And I can get into that if you'd like, you know, more or less what we're doing is we're starting to bring in more partners.

What we found is, you know, I used to be able to to break even a lot of my burrs. You know, I would say, you know, some of them I would actually put $20,000 in my pocket after we'd renovate in finance. And some of them, you know, we'd leave, you know, five or 10 or even 20, whatever. you know, lately we're leaving 10 and 20 into everything just with the rising home prices and the rates and everything. So that got a little bit frustrating. And so we had to kind of take an outside the box approach to that. And so we're, you know, we, you know, I go to all these conferences like abundance and, you know, the Guardians Alliance and all these entrepreneurs that, you know, they're doing their own thing. They're cruising, you know, making good money doing

their own thing. They always ask, you know, how do we, how do I get into this? Can you help me? And so the only way I really knew to make it a win-win is, you know, I've got this machine, you know, I've got all these, you know, members of our team, you know, helping with the real estate, you know, can I, you know, could I somehow bring them in as a, as a 50-50 partner? And, you know, what would that look like? And so, you know, what I was able to do is, you know, basically as we renovate properties, we'll realize we, you know, we might be leaving 10 grand into it. I'll go to one of my, one of my buddies, one of my partners and say, hey, you know, for $15,000, I thought, you know, you can partner up with me on this thing.

And then that gives me about $5,000 buffer. And so, you know, more or less, you know, at closing, we're about $5,000 ahead on that property instead of being $10,000 down, which, you know, just, you know, alleviates that capital restriction down the road on other properties. Yeah, this is something that David talks about quite a bit, especially in the one and only book I've ever read, the Burr Strategy by David Green. I think he mentioned one time like, oh, so you might leave $6,000 in the deal, boo-hoo. That's not really a loss. Like you still have that equity. It still exists. Right.

You just don't necessarily get to take it out. So I think if you get to acquire a bit of a, you know, some equity here and add to your net worth and it's costing you, you know, $10,000, $20,000 that you're going to leave it parked in a house. It's just a waiting game. And honestly, it's probably a good healthy habit to practice waiting on when you can ever pull money out of your real estate. Right. Exactly. And that's one thing I go through of my partners is, you know, there's, you know, you know, you might be giving me $15,000. But ultimately, you're, you know, if we go turn around and sell it, I mean, you're almost paid back in full. You know, it takes about a year

and a half on average to, you know, to be able to completely pay them back if they got into a buying and needed to sell. And so, you know, once you kind of present that concept, you know, for, for me, I'm in zero cash. And so I'm able to buy as quick as I need to. And for them, you know, they're basically handing over money and they don't have the headaches. They don't have the flooded basements. The calls in the middle of the night that everyone's so scared of. And, you know, so it just, you know, it calms their nerves to be able to just be an investor and not, you know, not deal with the stress around, you know, managing properties.

I want to jump in here and give a little context to the listeners on what this deal actually looks like compared to a different kind of real estate deal. So on this deal where you said you may leave 10 grand in, hypothetically, what do you think a property like that's going to cash flow a month? So our typical deals, you know, we'll purchase a property, you know, again, this is in Omaha for the majority of our properties. Typically, we'll purchase for around $150,000, $150,000 and we might put, you know, $30,000 into them and, you know, they might appraise it, you know, say $2.10 or whatever, you know, off of that, we might cash flow maybe three to, three to $500. Lately, it's been a little bit better. It keeps going up. I'm not totally sure. I think just rents are

going up and we're able to capture a little bit of a higher rent per property. So let's say the average of 400 a month. That's about 4,800 a year. Divide that by the 10,000 that you leave in the deal. That's an ROI of 48%. So just about two years, you're getting all of your money back. That's on a deal that you're saying, oh, it didn't quite hit what I wanted to hit. Your consolation prize is a 48% return. And that's one thing I just want to highlight about the Burr method because people think if you don't get 100% of your money out, you did it wrong. Right. That's like I didn't hit a home run at this at bat. I suck. I only got a double. I only got a triple. I'm comparing Burr to a traditional method where you put in way more than 10 grand and your ROI was

much lower than 48%. So from that perspective, you're definitely winning. Another thing that I think people should recognize about the Burr method is that as the market goes up, which it has been, doing, it makes it harder to get into the deal because you got more competition for these fixer upper homes. But once you get it, it makes it that much sweeter because during the rehab, you're kind of getting some market appreciation that's boosting you some wind at your back. So then when you go to refinance, you've got some natural market appreciation that's major value go up higher in addition to the improvements that you made to the property, the force appreciation. So it makes it easier to leave less money in the deal. And for a long time, that was good.

Well, now that the market's turning around, there's people that are, worried like I don't want to use the burr method because the property might lose value well that could be true but it's the same is going to be true of everyone else who's buying traditionally but the good side is it makes it easier to get the deals because theoretically you've got less people that are chasing them so I kind of wanted to like get your opinion on you've been at a dead sprint I mean buying 50 houses in six months is insanely I don't even know the right word to use for how busy that's going to be like you're it's almost impossible to get everything done that needs to get done on that many deals in that period of time. You're going to miss some stuff. Yeah. Are you seeing that

it's like I sprinted it now like I'm stopped? Have you seen that it's easier to get deals? Are you actually looking to buy more of them? What's kind of going on in your market? Yeah. So I have a little group of high school and college kids that I kind of mentor with the Burr. And, you know, they're saying the same thing. They're always, you know, trying to figure out, you know, are we going to slow a way down? Is this going to get, you know, come to a stand still? And, you know, my response to them is, you know, every, every bad review, you know, for like interest rates or, you know, prices going up, all that's just scaring off for competitors. And so, you know, I love, quite honestly, I love hearing all the negative, uh, just, uh, news out there

because it just makes everyone just kind of go hole up and not, not want to do anything, you know, not want to purchase anything where, you know, this is, this is kind of our time to sprint, in my opinion. I mean, you just got to look, you know, you got to have the right people out there, you know, searching for you and have the right connections and the right, you know, real estate agents that understand your buy box. So have you seen property sitting on the market longer, less buyers competing with you in your market? Has you have you seen a slowdown? For sure. It's gotten to the point where we're starting to get text, you know, quite often. I mean,

we were getting texts once a week. Now we're starting to get, you know, maybe a text a day, just about a property to evaluate. My son is highly involved. He's a high school junior. And so I'm kind of spoiled because I can just forward that off to my son Alex and he'll go plug it into the pro calculator on your website, on the bigger pocket website and tell me if whether or not it's a good deal or not. So I've kind of trained him to handle that for me. And so if he comes back and, you know, he'll look at the neighborhood and he knows what we're looking for. So he kind of guides me a little bit, you know, on what we're purchasing. So that's a good question. Why don't we, this will be my last question before I hand it off to Rob. Give me an idea of what your workflow

looks like. I can see he's chomping at the bit. There's there's brilliance brewing behind that that cloth. Give me an idea what your workflow looks like right now, Chad. Like who's looking at properties, who's analyzing them, who's writing the offers? Once they're accepted, what's your process look like? Yeah. So it's pretty simple. Honestly, we meet with different agents all the time and we really help them understand our buy box. And, you know, if we can get pocket listings, great. You know, we'll, you know, we'll definitely look at those. There's kind of always the most fun, you know, because we never actually know what we're getting until you plug it in. But then, you know, we started to look 15 and 20 days out.

You know, that's something we were never doing before, just, you know, waiting for that initial frenzy, which I don't even know if it's a frenzy anymore. It doesn't seem like it is, but, you know, it seems like that frenzy slowing down. But 15, 20 days out, it seems like, you know, people are starting to get nervous again, again, with all the negative reports going on. people are starting to wonder if their properties are going to sit forever. And so that's what people are starting to wheel and deal a little bit more and be willing to, you know, cut a deal for us. So, you know, once we, once we see a property, we will low ball. You know, we say we kind of,

you know, fight with grenades instead of sniper guns. And so we just throw out a ton of different offers. And it doesn't, it doesn't matter if they don't like us. You know, there's people that, you know, get super upset at us. And, you know, we're good guys. We're not trying to. offend you or upset you but the same time you know it has to fit into you know buying properties is all big math equation you know uh is it going to fit into our math equation you know is it going to work for us and so uh once we find you know that property that does work for us you know we do kind of you know we'll try to talk them down as best we can and uh go after it pretty hard yeah so i i mean it seems for sure if you're if you're trying to lock down 125 properties you know that's you got to put out

a lot of offers out there for sure. And I'm kind of curious. I mean, going back to something that David mentioned earlier about the 48% right, you know, if you're if you're getting paid back in two years, that's a really good deal. And if you really even double that and you got paid back in four years, I believe, you know, math me out here. I think it's about a 25% return. That's still a really, really good return. That's still usually going to be about two times what you're going to get just acquiring a long-term rental the old-fashioned way. So I'm kind of curious with the amount of effort that you're putting into scaling up. Now, actually, David, you too, because I know you're putting a lot of offers out there as well. What kind of, how do you evaluate your return on

something? Jed, are you looking at your deals like, oh, it's got to be a minimum of a $10,000 profit? Or are you going in and looking at it as a cash on cash return on your burr deal? We don't care about cash on cash at this point. I think there's a certain point where I will, but at this point, you know, we're in the appreciation game. You know, we want to accumulate as many properties as we can. You know, if you think about having, you know, 15, 20 million dollars in property and that's appreciating it 3% a year, you know, that's what gets me excited, you know, to be able to kind of suck that out tax free every three to five years. I mean, that's, that's crazy. And so, you know, that's something I didn't.

Amazing. Yeah. Yeah, I didn't even think about that. Actually, I went the first 10 years without even thinking about the appreciation side until a buddy of mine who, he has like twice as many properties as I do. He's like, dude, you should get in there. And, uh, refinance those rates are down. I'm like, well, you know, why? You know, I'm getting a pay down and everything seems fine. And he's like, just do it. Go get him appraised and see what kind of money you can suck out. And it's funny. I mean, I just went property by property. And by the end of that, I was I was able to suck out. I think I had at that point about 30 properties, I was able to suck out about just over a million dollars. I had no idea that was even sitting there in just an

appreciation. So it was like, okay, let's go. You know, it's time to run now. I had no idea that cash was, you know, just sitting there dead on me. Ah, yes, the old, the old accidental millionaire blend. Yeah, yeah. I mean, not to sound arrogant or anything. I've just, actually, it's probably that's how embarrassing, you know, how dumb I was. I literally wasn't even considering that aspect or that part about what we were doing. It's like when you reach in your coat pocket and pull out a million dollars.

You're like, oh, I forgot I had this in there. Didn't know. Oh, that one. Oh, yeah, I forgot about that. Yeah, my story was similar. I bought property and I wanted to cash flow. and then I was really mad that California property didn't cash flow. And I was having a hard time.

I had to go buy out of state. And I was just in like a bad mood. I didn't buy real estate for a year because it wasn't cash flowing. And I was like a lot of other people just bitter. And then I got into GoBundance and they said, hey, got to track your net worth. And I didn't know what net worth was. And when I did, I was like, I'm worth $1.35 million. And like, it hit me that I was a millionaire.

I had no idea. I had been walking around a millionaire and had zero clue. And it was a life-changing moment. not in the sense of the money made me a different person, but it was that I had no idea I was this successful at what I was doing, right? Like it was more meaningful than what I thought. And I think a lot of us can get into this. You're grinding, you're grinding, you're grinding, and you don't know if it's going to go anywhere. And then at all at once it hits you like, oh, man, I made it. Like, I did get there and I should double down. So that's a very cool story when you realize,

like, I've got over a million dollars in equity in these properties. And then that can supercharge the next round of investing. Like, did you have a plan for what you're going to do with that money? None. I had zero plan. I had no idea. But I will tell you that I had to have that not even two to three months later COVID hit. And I have a championship ring company. We sell championship rings. It's a, company that started like 18 years ago. And guess what industry you don't want to be in when they cancel sports? You know, you don't want to start, you don't want to be in the industry of selling championship rings because there's no championship for, you know, a year and a half. So I had a choice to make at that point, you know, do I, you know, keep my company floating and just feed that machine? You know,

if I let these skilled people and these, you know, incredible people walk out of the door of that company, I'll probably never get them back. And that was, that was a, you know, that was a point where I, I literally, it took me weeks to figure out what I wanted to do there. Because, honestly, to keep that company floating through COVID cost me about a half a million dollars. So had my friend not mentioned, you know, hey, you should, you know, get these things of praise and suck out money and then, you know, buy faster. Had he not mentioned that, that would have been, I'm not sure that company would exist. And, you know, that company is, I mean, you know, we have incredible people. I'm not trying to say, you know, I did anything great. My people are incredible. But, you know, it shot up to be in the

second largest championship ring manufacturer in in the world really so you know to have that thing just go flat and lose all those you know trained people and skilled people just it would have crushed me that was my baby that's amazing well i think that's i mean i think honestly all three of us probably accidentally realize it sounds like we all realized we were accidental millionaires i think that's the mindset that's really important in real estate because if like a lot of people get into real estate and they want to just figure out how to become a millionaire how to their job, how to quit their nine to five. And they're just so focused on how much money

they can pull from the business, when what you should really be doing is never touching your money for the first set of years, because you really need that to keep investing in it. So that's really cool. Shifting gears a bit, like I kind of understand a little bit about how you're evaluating your deals and what you're looking for.

David, I know you're putting out deals all the time. You're putting out multiple offers. You just went and looked at stuff in Tennessee and in Florida, and you're expanding pretty quickly on your end. I'm kind of curious, what's your theory on writing multiple offers? Is that something you like to do? Do you like to have a lot of irons in the fire and then you just kind of go for whatever happens first?

So for me, I drive my people who craze me around me with offers. So I don't know how you are, David, but, you know, if I can keep as many irons in the fire as possible, it's exciting and fun for me. And I get super addicted. When there's nothing happening, I get down and I start looking. I start kind of going outside my buy box. And then I start getting into trouble. So here's what my thoughts are with that.

When Bigger Pockets was sort of a new fledgling podcast, the market was very different. It was like 2010, 2011, 2012, where there was massive motivation. And you were just thrown out offers and a percentage of them would stick. You just catch a seller that was like, I'll take it. I just need to get rid of the house. Or maybe you're dealing with the bank and REO. So multiple offers would get you multiple results. And that was the advice that was given on the podcast.

like Brandon would do that. He would just shotgun offers and say, I'm going to hit something if I get enough out there. And then the market sort of shifted and it got much more competitive. And it didn't, you could shotgun an offer when they're getting 12 other offers that are way better than yours with better terms. Like all these strategies that we were teaching on the podcast, there's not really a lot of room for you to use them. Like the only strategy was working is pay more than the next person.

Now we are getting back into a softening of the market. And I just think it's beautiful. Like all the stuff I've learned that helps me to. get a better deal. I'm able to use it again because it's just me versus the seller, not me versus the other 12 buyers that are trying to get this house. So I'm writing a lot of offers, but it's not from a perspective of let me just shoot it out, see if they say yes and then move on. I'm actually throwing it like a jab in a fight. I'm more interested with how they respond to my offer than I am just, are you going to accept it or not and then move on to the next one. So I'll throw out a bunch of offers,

but the conversation with my agent isn't, did they say yes or no? What did they say? What was their tone. How did they counter? How did they sound? And I've had some really good luck in the last couple months getting stuff under contract. I didn't even think I had a chance with by looking at the offers that came back and saying, oh, this seller is definitely in a place where they need to unload this thing. That's the one I want. And I kind of want to open that up to you. And Omaha is a little different of a market. I've been kind of looking at higher end stuff where you definitely have more wiggle room. Those markets are more sensitive to rate hikes and there's less buyers. But in your market chat, are you following up on the offers that are sent? Are you looking for them to

counter or is it mostly just like yes or no and move on to the next one? Typically, we do go back and forth two or three times. And if it, you know, if it doesn't fit, then it doesn't fit. And we don't cry over it. But there's just so many opportunities that are now starting to surface. And this is, you know, back in 2008 when I started, I had no idea how spoiled we were. You know, there was a house for sale on every corner. And, you know, I'm sure everyone's jealous. You know, that is when I got started, although I had no capital. I had no money, but there was houses everywhere.

And so you're starting to kind of feel that comeback to life. And so this is kind of, you know, it's getting my attention. It's always has my attention. But it's starting to become fun and exciting again because those, you know, you're not overpaying for things. And you're not fighting so many people. And it's, you know, you're not insulting people because you're not going, you know, over asking. You know, it's just, it's just been so, you know, so different than it used to be. And so now I kind of feel like it's starting to normalize again, which is great.

Yeah, so, Chad, let me ask you something because let's say that there's a house that's $200,000 and you come in with an offer of $150, right? You're saying, you don't want to offend them, you know, submit that offer. Most times the realtor, the other realtor is going to come back and say, that's a no. And at that point, how do you come back to them in that moment? Do you say, okay, well, you know, I'd be willing to come up to 155,000? Or do you give them a substantial increase? Like, what is that back and forth?

Because if you're going back three or four times, I got to imagine, you know, it's a little tedious and probably I'd imagine frustrating for the other side. If you're like, all right, 155, no, 160, 161. So how does that process work on your end? You know, not all realtors are the same. And so you do have to coach them a little bit. And that's been, that's been, you know, you think, well, you're a pro. This is what you do all day. You know, why would I even think about coaching you? But, but in reality, you do, you do have to. And so, you know, I will ask them what their strategy is. And, you know, typically we'll give 48 hours. You know, if we shoot too low and we give it, you know, and they just, you know, versus countering, you know, we'll give it 48 hours and, you know, run the numbers again and see if it doesn't, if it's still for sale. And typically within about, you know, a week or two, you know, if you keep coming at, you know, if you keep coming at, them, obviously the level of interest is there on both sides. And so they will start to finally,

you know, focus on you. They, you know, they kind of see you for who you are. You're just trying to get a deal, which, hey, you know, we're an investor. Of course we are. Right. And so I guess the other thing here is like once you've negotiated this deal at this scale, you know, if you've locked it down, you know, I sort of have an understanding a little bit about your workflow and how you work with your son and he runs it to the calculator and everything like that. What kind of tech stack is involved with this. I know obviously we've got the calculator on bigger pockets and just a small shout out there. You can use that for free five times. And then after that, if you become a bigger Pro, bigger pockets pro member, you can use that as many times as you want, which is a real game

changer for a lot of people that are running deals over and over again. But outside of that, what kind of tech are you using, especially when you're working with investors as you scale up, what property management systems or, you know, CRMs, like, can you give us an idea of what the tech side of scaling up looks like? Absolutely. So that's a great question. You know, we have a bit of an advantage because I have a bunch of tech guys that work for me with my championship ring company, I'm able to kind of moonlight those guys, you know, if they're not busy certain seasons, and I'll kind of bring them over for different projects. And so with partners that I bring on, as I mentioned earlier, you know, I might bring on a partner to kind of help that cash flow situation.

So what my ultimate fear is, is they look at me and they say, you know, you're, you're, not stealing from me, but you're, you know, you're hiding, you know, profit or I'm not doing it right or, you know, or maybe they're calling me every other day trying to figure out, you know, what's going on with the property and so on. And so that's kind of the last thing I want to do and that's the last thing my team wants to handle, you know, with the partners. And so we were able to kind of load up a dashboard. and it works right out of QuickBooks.

And so if we have a $200 charge for a screen door that broke or whatever, you know, all that gets loaded straight into our dashboard. And so they can go into that dashboard and type in, you know, say 30 days ago until today or 60 days ago until 30 days ago and kind of see, you know, okay, we got paid this amount from the tenant. This expense, these expenses came out. And so it really alleviates the question marks, you know, because we, you know, we all want to be on the up and up.

We all want to, you know, show our investors that we care enough to show them their return, you know, at their fingertips. And so that's really been something that's been crucial for us. And it really helps our investors, you know, understand how passionate we are about, you know, making sure everything, you know, gets dialed in and their investments coming back to them at the right timeline. Yeah, that's really cool. So you actually keep it pretty transparent with the dashboard so that you don't have to, you know, go through 17 calls a day answering every little question. Exactly. People, you know, people get concerned. You know, you look at the stock market and, you know, crypto and all that stuff.

I mean, people are used to checking all the time on stuff. And real estate just doesn't quite move that fast. But, you know, sometimes they kind of forget that. And so to provide a dashboard and, you know, they can check every day. Quite honestly, not much is going to change. You know, it's not like crypto. But, you know, at the same time, you know, if they want to, they can. And that kind of, you know, keeps the calls away from our office.

You know, you just inspired an analogy, Chad. Ooh, let's hear it. Uh-oh, here we go. Uh-oh. Weeds grow fast, but you can't see the progress of a tree growing. That's good. Right? Like, real estate's like that.

It's this tree that you planted. You can't look at it and see that it's growing. But you go back to it a couple years later and you're like, holy cow, that's worth a million bucks. Whereas the investments where you're just getting addicted to checking and like, oh, my God, it went up and you get this dopamine hit like you just made money. And then it goes down and your soul is crushed like you're an idiot. And like, I just thought a healthy way to live going back and forth.

And that tends to be how weeds grow. They sprout really quick and they die really fast, but the best investments are something that you have to be patient to lay gratification. And it sounds like that's kind of what you're doing over there. So most of your effort, it almost seems like, is going into the system you're trying to build so that you can plant a lot of trees. Right, right. And the key is, you know, people, you know, having the right people around. So, you know, when we had it, we used to work with a management company and I hired one manager and that didn't work. And so, you know, what we did figure out is we've got to hire a rock.

star team, it will make the difference, you know, hiring people that have that owner mentality that really truly care. And so, you know, once we kind of figured out that we have to bring on the right people, it really solved, you know, the majority of our majority of our issues. Because we, we had a lot of bad stories in between and to hire those key people and, you know, the people that do genuinely care. It makes all the difference in the world. So as you're kind of building that team because I think this is something that we don't get into the nitty gritty of this a lot. We talk about hiring people, but it's kind of, it's very intangible for a lot of people sort of in the throes of the beginning of their journey. So do you think you could just maybe even talk

about a little bit when it's necessary to hire somebody? Let's give it like a scale. Like in your first one to five deals, I'm sure you can probably do a lot of that yourself. Then there's like five to ten deals and then 10 to 15. Can you help us understand when you're scaling up when one might need to hire somebody and what kind of role they would hire to help them scale? Right. I can speak for myself. I was, I was pretty busy with my W-2. And so I immediately needed to hire somebody, you know, to give my property's way to a management company. What I, what I found was that just honestly wasn't working. It was killing our cash flow. They would put in bad tenants, you know, bad screening process. They'd just, you know, anyone with a heartbeat could, could, you know,

get loaded into the house. They'd overcharge us for, you know, easy fixes. I can think of a thousand dollar screen door I want to replace, a thousand dollars. And I ended up calling and checking on how in the world a screen door costs $1,000. And they had sent out two people to measure and then put them to, you know, send them off to Home Depot and they bought the wrong door and, you know. Carge you for every one of those. Yep.

Yeah. You know, 60 bucks an hour per person times two, you know. So, you know, it didn't take long to get up to a thousand dollar. And so I realized, okay, this is just not, this is just not working. So, you know, that's when I hired my own private, you know, I actually collaborated with one of my buddies who had a bunch of properties at that time. And we don't, we don't co-own the properties, but we kind of put them together and, and hired this team. But our first, our first shot was our, was by far the most embarrassing shot. But we, we hired one gentleman and, you know, he was a huge failure. And we just thought he'd be the savior of our, of our real estate, you know, getting away from the $1,000 screen door type situations. And, and it was. And it was a huge failure. And, you know, he was a huge failure. And we just thought he'd be the savior of our type situation. And, and it was. And, and it was, and it was was anything but that. So, you know, for us, we immediately went into management with a big management company and then, you know, got out of that as soon as we could. I would say numbers-wise, I think I was at probably 10 properties before I realized, you know, I just wasn't making anything and I had

to do this a different way. That makes sense. I think management is also, it can make or break you, you know, especially if you're holding on to these things. A good manager can make you a lot of money. a bad one can just cost you so much more outside of what they charge you just from the actual like you talk about the tenant experience. Rob, can I tell you my most embarrassing story? Is that okay? Please. Yeah, it absolutely is. I do not tell this story very often and just because everyone laughs at me so hard. But I'm going to go ahead and let it out. So I was purchasing properties pretty fast. I was obviously working with my other company quite a bit. And I, uh, I had a punch list put together for a property.

We brought, we had just broken away from our management company. I hired this gentleman and he was in the industry and he was going to be the savior of our real estate. And so anyway, I gave him the punch list. I said, hey, go knock all these things out. It was about a $30,000 renovation on a new property that we needed to fix a lot of stuff on. And I remember, I never checked on it.

I checked on him quite a bit, but just on how he was doing with the project. But I never actually drove up. to, I live in Lincoln, but, you know, I never drove up to Omaha to check on this property. So two months later, he gets me a call and he's like, hey, this thing's good to go. We can get this rented next week. And so I said, okay, cool, let me just run up. I'm going to double check all the punch list items and make sure, you know, everything's good. And so I went up there and I'm waiting in front of the house.

And, you know, I think I was supposed to meet him at 1030 and, you know, 1045 rolls along and I'm, and he's not there yet. And so I shoot him a text and he, he's like, man, I'm here. So I look around. I don't see him anywhere. And so I give him a call. And he's like, I'm standing on the porch. And I look up at our porch.

He's not there. So I said, hey, I think you, you know, I think you're at the wrong one of our other properties. Will you send me a pen? So he sent me a pen. And he was literally one block over, identical spot, one block over. And so I drove over there. And I said, hey, you know, what's going on? What are you here for?

And he's like, well, this is your house, right? And I go, no, this is not our house. I said, what happened? And so lo and behold, what ended up happening? was he he got to the property initially, couldn't get in, he thought the keys were bad, he re-keyed the house, got a locksmith over there, re-keyed the house, went in to a house that was not ours, and we spent $30,000 rehabbing a house that we have no idea whose house it is. And what ended up happening was the guy that had purchased that house was saving up for the

rehab and we ended up having to call him and let him know that, you know, hey, something happened. You know, that house you had purchased on South 18th Street, we're, you know, we actually broke into your property and we completely fixed it up on accident. And we thought it was our house. And so anyway, I asked my, I said, hey, can I buy this house from you, you know, make this blood bath maybe, you know, go away a little bit? And so he's like, hey, give me 24 hours and I'll give you a shout back. So I texted me a few times that next morning, no response.

And about 3 o'clock that next day, I'll never forget this text. And I think I sent him a text. I said, hey, you know, what are you thinking? And his response back to me was, I'm good. And I was like, he wanted to check and be like the color team. He needed 24 hours to check out the shower and see if he like. He walked in, he's like, oh, this is actually pretty good. Yeah, yeah.

I hope he liked it. So anyway, he kind of cut me off communication from there. And I had literally nothing I could say. I mean, I literally broke into his house. You know, I mean, what am I going to do about it? And so then we had to turn around and fix up the other house. That actually cost 40 to renovate. And so we were out 70 between, you know, the two different properties. So, yeah, it was quite the mess. That was a tough one. Oh, man. My heartbeat is barely just slowing down right now on the conclusion of that story. Man, I am so sorry. That is. Yeah, that's embarrassing. That is a good, you know, you know, you say you haven't, you don't tell this story much. You've chosen an interesting opportunity to tell the story given how big the audience is.

I'm sure this happens all the time, right? You know, if I can save someone else from doing it. Yeah, that's, that's, I do appreciate that, yeah. Well, I don't think that happens all the time because I think most contractors or handymen would say, hey, the key didn't work. Yeah. What's going on? And you'd say, show me a picture of the front door. Right.

But like, that's, sometimes in business, you do get these people that take such, like, you like to see initiative, but you're like, at what, there wasn't one point where you thought maybe I should call and check in and see, am I at the right house or why doesn't the key work or, hey, this floor plan is completely different than the what you told me that you were going to want. Or like, where's the third bathroom? You're like, so many things that should have popped up. Yeah. No, it didn't. Yeah, that's funny. Well, it's also horrific, but that's a really funny story. that is. Hopefully, okay, I guess let me ask you this. In retrospect, do you wish that hadn't happened?

Or are you glad that it did? Yeah, no, I appreciate you asking that. You know, that was a catalyst that pushed us forward. And so that, that's what forced us to hire that rock star team. You know, at that point, we're thinking, okay, we've got a bunch of properties. We can either continue and and screw them up or we can go and really hire, you know, quality people that are sitting in the right seat for each of their skill sets and really put some gas on this. thing. And so that's where we really dialed in our process. And, you know, over the next like year, we've really added a bunch of key components, you know, to be able to succeed. And I can think of a few of those, you know, we these, these have been instrumental for us. You know, we require 650 credit

score, you know, to even, to even look at them, you know, a 50% or less, you know, debt to income ratio. We verify their income. We call the last two landlords. You know, we, we care about the last landlord, but we really care about the landlord before that, you know, because they don't have any skin in the game. We definitely, you know, we check for bankruptcies, evictions. We do allow co-signers if they don't qualify for one of those things, but if there's an eviction, you know, we definitely, you know, we definitely, you know, toss that one out to hard know. But yeah, basically, we look for patterns of responsibility. You know, these, you know, when we fix these up, you know, we really put nice finishes on them. I mean, it's, it's not like it's a Taj Mahal at the same time.

You know, a lot of our tenants have never had, you know, brand new carpet, brand new floor, you know, LVT flooring, granite in the kitchen and, you know, those things. And so there really is that pride of rentership that you see. And so we are able to capture, you know, you know, a tenant that really does care about the property. You know, there's probably a really good chance that those systems that you put together have saved you more than the $30,000 that you spent on that house, honestly. I don't, I don't think enough. people embrace the mistakes that are going to come with real estate. And it's just going to happen. It's the name of the game. You are going to make mistakes that will cost you $5,000, $10, $20,000, $30,000.

And it obviously hurts in the moment, but you always have to look at it from, you know, the bird's eye view of what you learn and the experiences that come from that. And if you lose $30,000 in this scenario, you're going to make it back. You're going to make it back by strengthening your systems and just never making that type of mistake again. So I really appreciate the, I appreciate the story. I appreciate you tell it because I know that's probably not super easy to come on to. No, we call it tuition. We call it our tuition. You know, we learned something on it. For decades, real estate has been a cornerstone of the world's largest portfolios. But it's also historically been sort of complex, time consuming, and expensive. But imagine if real

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heard about Indeed on this podcast. That's Indeed.com slash rookie. Terms and conditions apply. Hiring Indeed is all you need. So, Chad, what advice do you have for somebody who likes your partnership model and they think that they want to get started buying real estate that way? You know, for one, you have to get yourself together. You know, if I had tried to do this back in the day, I would have just pissed everyone off. You know, it wasn't until we really smoothed out our machine. And honestly, there was years of smoothing that out and finding the right, you know, people to do the right processes. Without that, I would be really timid, you know, unless you're doing it on your own. If you can, you know, stay somewhat small and nimble, you know, that would absolutely be an option.

But for us, you know, trying to scale fast and trying to reach 125 homes by this Christmas and bring on partners that like the process and like the experience, you know, we've got to have the right people and the right processes in place or else we're just going to implode. So for someone that hasn't built a process before, they, they, just done kind of the one z two z. It's always easier when you're going slow because your systems are terrible, but you don't know it because you can just respond. When you get high volume, what you're doing breaks and you really have to rebuild it. What advice would you give to someone who's never had a system? They know that when someone calls them and says, I need this done,

they respond, but they're not anticipating what's going to happen and maybe delegating it to somebody else. Do you have a spreadsheet? Do you have a checklist? How did you structure what goes into these deals so you could buy 50 of them in six months and not miss a ton of stuff? Yeah. I mean, our software, you know, saves our bacon. You know, we rely on that, you know, hard. But at the same time, to answer your question, you know, having people with capacity, you know, having our team be able to go out to the properties and evaluate things and not trying to do everything on our own, You know, that's been, that's been, you know, I'm a guy that wants to kind of do it all. And so once I learned that I have to be able to outsource to people that are quite honestly better at it than I am, you know, that's allowed us to kind of scale and move the needle there.

How big is your team currently just out of curiosity for, you know, at your size, 50 houses so far, another 75 in the pipeline? What kind of team does that take? We have five core people that are in the office. And then we have six crews that are kind of running around and doing all the renovations. and then we have one person that manages those six crews. And do those six crews work exclusively for you or do they work for other, you know, investors as well? Right.

So three of them do and then three of them do not. And so the three that do, you know, it's funny with construction crews, you know, you find contractors that, you know, these three guys just want to work for us because it's safe. They don't have to go look for jobs. They don't have to knock on doors. They don't, you know, they don't have to worry about getting paid. They get paid at the end of the month. month, every month, you know, just all those, you know, stresses that come in from being a contractor

is completely alleviated. And so they really enjoy that. Then we have three of our crews that they probably do juggle. And they are, you know, they're fixing our stuff, but they're also fixing someone else down the street. And so, you know, we really, you know, make sure we get the, you know, the timelines lined up with them before they're willing to take on a, before we're willing to let them take on a project for us. Last question before we go to the deal deep dive, would you say that your experience in property management companies has given you confidence to scale at the degree you are now? Yes, but even six months ago, I'm not sure I would say that. And the reason why is every day we're finding out something we can do better. And I think that when you are passionate about, you know,

growing, you know, I think as investors, we can kind of get into that, you know, the education loop or whatever, we're just, you know, constantly trying to learn before we jump into something, you know, the problem with doing that is, is you're never actually, you know, hands on doing it. And it wasn't until I, you know, I run into these problems where I really quite, you know, take them serious. And so once you start running into these problems, eventually, you've almost ran into all the problems you're going to run into. There's always outliers, but, you know, we can solve everything a whole lot faster than we could, you know, two, three, four, five years ago just because we've been there and done that and seen the problem. and now we know what to do and act. That's awesome.

All right. Well, thank you for that, Chad. We're going to move on to the next segment of the show. The Deal Deep Dive. In this segment of the show, we are going to fire questions at you that dive deep in a particular deal that you've done in the past. So question number one, what kind of property is it? It is a single family home in Omaha, Nebraska. Question number two.

How did you find it? Okay, so we have realtors that are always searching for us, but, you know, it's, It's no question, you know, the realtors are feeding me and they're feeding other people. And so that's one of the things that I do with my, with the group of kids that I meet with every week is I make them analyze properties. And then if they happen to find a property that that didn't ever come my way, that realtor didn't pass my way, I actually write them a check for $1,000 on the spots. You know, if we're able to capture that property, that once we close, I write them a $1,000 check because, you know, again, you know, realtors are feeding us and they're feeding other, you know, other investors. at the same time. And so that particular property, this particular property, my son found, and he analyzed it and sent it off to the realtor and we ended up, you know, capturing it.

Okay. How much did you pay for it? $135,000. And how did you negotiate it? It was listed at 140, and we kind of went back and forth, and we ended up capturing it for 135. Okay. And how did you fund this deal? So our funding is a little bit unique, too, in a way, I guess. So we get our, our, uh, We get five-year term, AMDA over 20 years, but we also get 90% of our renovation covered by a small local bank. And so that's really been nice for us because, you know, if we say the renovation is going to cost, you know, 50 grand, they'll give us 90% of that up front. And so at closing, you know, we really have all the cash we need to cruise forward.

What did you do with it? Yeah. So this one needed about $30,000 in work between the kitchen, the floors, a new bastard bath and just some audit. ends. It was kind of your typical renovation on a, on a three-bedroom house, two-bath, property. Nice. And what was the outcome? So the outcome on that one, we just got the appraisal bag not too long ago. It came back at, I believe it was $191,500. You know, we get 80% loan to value back from the bank. So the loan itself was $153,200. And I had just over about $160,000 into it. So I was going to leave $9,000 into that particular house.

I did end up bringing in a partner on that one. And I asked him for $14,000, if he'd be interested in coming in. And he did accept. And so, you know, at closing, we ended up putting about $5,000 in our pocket, which, you know, it's not really $5 grand in our pocket. You know, we'll just use it towards, you know, things that come up as tenants move in on that property and kind of the buffer there. That is the correct answer.

No, I'm just kidding. And what lessons did you learn from this deal? Yeah. So like I said before, you know, the real carrot is the appreciation. So, you know, bringing in partners is something that, you know, my wife didn't really want me to do, you know, more people, more problems kind of thing. But, you know, by bringing in partners, we're able to scale. And, you know, I'd rather have half the pie than no pie at all. And at this point, I wouldn't be buying any.

And so, you know, I guess what I learned was, you know, it's okay to bring on partners. You just have to be able to handle them right. and, you know, accumulate, you know, the assets, you know, as you're able to. And, yeah, I think that, you know, by being profitable from day one, you know, is extremely helpful, you know, in the process. All right. Last question. Who is the hero on your team for this deal?

Yeah. You know, probably my son. You know, I was pretty proud of him for finding this. You know, anytime they do capture property, you know, it's really fun to see him celebrate with this particular property just with my son. I tell him, hey, you know, over time, you know, I'll split it with you, you know, so anything that he captures that a real estate agent never sends to me, I will write him a $1,000 check, and then we end up splitting the house down the road. So, you know, he's going to be pretty, if he keeps finding me properties, he's found me four or five at this point. So, you know,

if he keeps finding me properties, he should be set here in about five or ten years. Awesome. All right. Well, that was our deal, deep dive. Remember, you two can do more deals with the help of Bigger Pockets, tools and resources, go to biggerpockets.com and look for the tab that says tools. Pretty easy to find. Famous for. All right, we're going to head on to the last segment of the show.

It is the world famous, famous for. I'm so glad I don't have to sing that anymore. I used to have to sing it every time Brandon would do it in this. Famous for. Yeah. You can harmonize with me. We'll try it. You know, you can harmonize.

That's by PTSD from having to do that with Brandon and singing that falsetto voice every single. week. What is your favorite real estate related book? Yeah, so I think it's going to seem like I'm kissing up a little bit, but I'll tell you why. So right now it is a Burr book by you, David. And the reason why is I'm working through the book with my son and his friends and these little group of entrepreneurs. And it's just amazing to watch their eyes open up about these concepts, you know, the load of no money in, you know, and just literally showing them, you know, I call my grom group. Are you guys familiar with the word grom at all? So a grom is a young surfer. And so

you go to Maui or maybe California, you hear the word grom all the time. You even see kids with tattoos on their body with it. So, you know, what it is is we call it a grom group because, you know, we really take them and we, you know, we surf them around, you know, the different, you know, jobs that we have up in Omaha. And so they're able to read the book, but then go up and walk through a real life setting of like, okay, this is what a renovation looks like. This is what meeting with a bank. I take them to meet with my bankers and so on. And so, you know, it's really, it's really fun to watch their eyes open up. And so I'm not a big reader. Kind of like what you said, Rob, you know, I'm not a huge read. I'm a huge podcast guy. And so, you know, to see, you know, their eyes come

alive with, with some of these concepts is just been super fun. So by far, that's been my favorite book to read. Hey, you read that thing once. You're going to be quoting it for the next three years. Source me. That's right. especially if it's the only book you've ever read. You don't have a lot of options. That's true. The only. There's no other book. Question number two, favorite business book. And then maybe I'll read this one. Yeah. So like I said earlier, it's who not how is the name of the book. And the reason why I really liked that is, you know, I was always a guy that they just pounded through everything and wore a hundred hats and didn't do any of them well.

And so just the, you know, just the concept of getting people in the right seat and figuring out who can help me accomplish. these things. And instead of, you know, how am I going to get this done? It's, it's basically, you know, who's going to get this done. And so just, you know, continuing to hand off my weaknesses has just really rewarded me. And if you'd like to learn more about the principles in that book, check out Bigger Pockets podcast, episode 423, where we interviewed the co-author, Dan Sullivan, along with Ben Hardy. So thank you for mentioning that, Chad. That's a very important concept that all entrepreneurs have to learn. So, Chad, when you're not out acquiring 125 properties in a year, what are some of your hobbies? I love to golf. My two sons, I think I mentioned earlier,

my daughter's headed off to college on me, and she's going to be, you know, totally rubbing in, and she's going to be a huge jerk and sending pictures of pools and palm trees, you know, next year. But, you know, while it's nice, my sons will all go play golf. When I'm in Maui, when, you know, we do have a property in Maui, when we're there, I do love to. serve, even though I am horrendous at it. My wife actually calls me Bambi on Ice when she sees me on a paddleboard or any kind of board. So anyway, they do like to make fun of me, but if I can be out there with my boys, you know, I'll give it a shot and look really bad doing it. All right. In your opinion, what sets apart successful investors from those that give up, fail, or never get started? Yeah, so I love

the term jump in before you're ready. You know, when I look at kind of how I started. I start. this path into real estate, I had no reason to go ahead and jump in. I knew nothing. And so, you know, by jumping in and just basically forcing yourself to learn a lot of the things to survive in real estate, you know, that that's really what I credit, you know, a lot of our success to. And so what I see a lot of my friends doing who asked me about, you know, how do I get into it is, you know, they listen to all the podcasts, they read all the books, they watch all the YouTube videos, but ultimately they just kind of get paralyzed, you know, by like just, I don't know anything about this. And so I'm not going to do it. Or I, you know, I need to learn more about that before I

jump in. And I just feel like we go into these, you know, kind of education loops. You know, I'm completely guilty of it myself. I'm the guy that bought into Bitcoin at 65,000. So, you know, I'm not somebody that wants to, you know, point fingers or anything. But just, you know, be willing to fail. You know, I always tell, I always tell my kids. you know, don't be afraid to start over because this time you're not starting from scratch, you're starting with experience. And so, you know, always be willing to fail. I guess, you know, ultimately just don't overcomplicate things. You know, do just jump in before you're ready and have some fun with it and, you know, truly just believe in yourself.

Really great words of wisdom, man. Last thing here, Chad. Can you tell us where people can find out more about you? Absolutely. So my Instagram handle is Chad Beeman. Beeman. is B-As-N-B-E-M-A-N-5-1-2, so Chad Beaman 5-1-2. LinkedIn is Chad Beeman, R-E-I, again, two E-S-M-B-M-N. Right on. Rob, where can people find you? You can find me on YouTube over at Rob-B-B-B-U-I-T. You're trying to be notorious B-I-G over here?

R-O-B-U-I-L-T. No, I think that's more of a Hamilton. R-B-U-I-L-T. All right, that is a very niche joke for all the Hamilton fans at there. Anyways, you can find me over on YouTube at Rob Built. And then you can find me on Instagram at Rob Built as well. And then you can find me on TikTok at Rob Bilto. It's the only handle I have where there's an O.

So don't fall for the Rob Bilto on Instagram. He's a scammer. What about you, David? I'm David Green 24, pretty much everywhere. I've actually invested in my social media recently. So I'm going to be making a page for the one brokerage and the David Green team page. is going to be improved.

And then my regular David Green 24 page 2. So I'd like to know what people think. Do they like it? Do they not like it? Curious there. I did have a old cop buddy of mine that got scammed by one of these crypto people making fake pages. He just called me out of the blue. And he's like, hey, have we been talking for the last week?

And I was like, no, please tell me you weren't talking to me on Instagram. And he was. And he didn't tell me how much money, but he said it was a lot that he sent. So again, we're just banging this drum. Look incredibly close at the screen name. They will make fake accounts that look like us. Maybe they change the I and David to an L or at a David dot green 24. And then they take all the same pictures and everything looks the same.

It's very easy to fall for this. So don't send any money to anybody online. And if you get a follow request, just check very close to make sure that the spelling is raw built and David Green 24. or if it doesn't have an E at the end, then that's not me. I just, it sucks, man. Like it hits you in your gut. You feel responsible that this kind of stuff is happening.

But until Instagram fixes that, this is the way that it is. Dude, you know what? It's gone one level deep now. They've now recreated my Facebook profile and their messaging on my friends and family. So it's, yeah, it's becoming a thing, man. It's a bummer. So, yeah, be safe, people. All right, Chad, any last words before we let you get out of here?

I just want to highlight your journey is pretty incredible to me. take this much action this fast and to move from Hawaii to Nebraska on top of that. Like you are an incredible human being to do all that. And the work you're doing with kids to teach them real estate investing that's very admirable. Is there anything you want to leave us with before we let you get out of here? No, I just, I just appreciate everything you guys are doing there. You know, you guys really provide the tools for us to be able to teach other people and not only other people, but ourselves. And you have, you know, through this, had I had this tool, you know, 15 years ago, I would have been much more successful and a much better spot

and much less embarrassing stories. So I just appreciate you guys and all the content you guys put out, just, you know, helping us to be better at what we do. Thank you for that, Chad. I'll get everyone right out of here. This is David Green for Rob finally read a book, Abasolo, signing off. Thank you all for listening to the Bigger Pockets Real Estate podcast. Make sure you get all our new episodes by subscribing on YouTube, Apple, Spotify, or any other podcast platform. Our new episodes come out Monday, Wednesday, and Friday. I'm the host and executive producer of the show, Dave Meyer. The show is produced by E&K.

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