Digital Social Hour - 2% Interest Rates, Building a $15M Portfolio & Future of Real Estate | Tommy Harr DSH #317

Episode Date: February 25, 2024

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So when I started getting to investing, I did these $75 inspections for investors. Get my foot in the door to network with the right people. Smart. I'm like, okay, let's do it. I started walking through. I mean, it's like standing like three, four inches of human. What? On the floor?

On the floor because it backed up from one of the drains. There's got to be better ways to make good money, right? Yeah. So you had to walk in. Walk through. Yeah. That's not the only time I've done that. But yeah, you got to hustle.

You got to make it happen. I guess that's part of my like ascension into, you know, getting it, getting it in. Wherever you guys are watching this show, I would truly appreciate it. If you follow or subscribe, it helps a lot with the algorithm. It helps us get bigger and better guests and it helps us grow the team truly means a lot. Thank you guys for supporting. And here's the episode. All right. We are here with Tommy Haar, real estate expert. How's it going, man? What's up, man? Thanks for having me. It's freezing cold in Vegas. Come from Ohio, thought it was going to be a warm vacation, but not the case. I woke up this morning and I ground every morning and my feet were freezing. I didn't

last three minutes. No way. I mean, dude, the grass was frozen here. I was like, what the hell, man? I thought the desert was supposed to be warm. Yeah. I thought it was cold in Ohio though. Freezing cold. So you get colder and colder. It's right about the time where you just kind of suck it up for the next four months or so. And yeah, just stay in with it. That was me in Jersey, honestly. The winters were pretty rough there. Yeah. They're brutal. It makes the people, I guess, a little bit grittier and cooler, I guess. I don't know. Yeah. So real estate, man. So talk to me how you got into that.

Yeah. So I've been kind of around real estate my whole life. My dad's a home inspector. So growing up, he also had a property preservation business. So 08, 09 happened. I was probably 14. He started a business where the banks were foreclosing everything. Somebody had to trash the houses out, board them up, mow the lawns.

And I kind of just grew up in that business. So graduated from college in 2017. You made it. Not a lot of my guests graduate. No, I listened to that and I was like, damn, I guess I'll be out. But don't really use my degree, but just joined my dad's home inspection business and didn't know anything about it. I just followed him around and learned like a puppy dog, basically.

He pointed at things, and I just learned that way. And then as time went on, started to see real estate investors, how much money they were making, the lifestyle they were living. And I was like, man, that sounds really cool. Let's try to dip my toes in this and see what it can do. And five, six years later now, it's completely changed my life. Wow. So how much did you start with in the real estate market?

Zero. Zero? No. I mean, I was living in my parents' basement. I graduated in college and just really kind of tried to make it happen. My dad was paying me like $32,000 a year back in 2017. Damn, your dad was... Yeah. I mean, it's just, he was a one-man show. He had built the property preservation business up to like 80 employees. It got to a point where banks didn't want to pay anymore. And then also, I mean, you got to kind of let people learn too.

So that business went to nothing. Oh, wow. And he was just doing home inspections and got to learn. So he was just paying me enough to make it feel okay, I guess. Damn. What's the worst home inspection you've ever seen? Oh, God. I mean, I've walked through human in the basement.

What? Oh, yeah. So I used to do these inspections. So when I started getting into investing, I did these $75 inspections for investors. Get my foot in the door to network with the right people and get in the door. And right away, I went to the seller. Ohio has 100-year-old plus houses. I went to the basement. Immediately, you could smell just ****. So I'm just like, oh, my God. And I'm already done with everything else. So I'm like, I really got to do this, huh?

I'm like, okay, let's do it. I started walking through. I mean, it's like standing like three, four inches of human ****. What? On the floor? On the floor because it backed up from one of the drains. And these people, it's a cellar, so they don't go in their basement often. Wow.

So I just went down there, and I was like, like and i walked out and this was among a couple other things i was like yeah this is not worth it this money is not for 75 bucks it's just there's got to be better ways to make good money right yeah so you had to walk and walk through yeah that's that's not the only time i've done that but yeah i mean it's just like you gotta hustle you gotta make it happen i i guess that's part of my like ascension into, you know, getting it, getting it in. But that's cool. You had the forward thinking to be like, okay, let me leverage these investors and find out a way to make money with them in the future. That completely changed my life. Yeah. So I knew I wanted to invest. I was starting to dip my

feet into the wholesaling scene and everybody always says, bring value to somebody, whatever the hell that means. So that was my way to bring value. So I was at somebody's networking event. There was a, I knew they took really bad pictures and they didn't know how to market their properties and they didn't know anything about houses. So I was like, Hey, I can give you 150 pictures of a house. I can give you a one page report. I'll do it for $75. I assume you're giving somebody 50. I want a little bit. Shout out to the Science of Scaling podcast hosted by Mark Roberge. It's brought to you by the HubSpot Podcast Network, the audio destination for business professionals.

Each week, Mark, founding CRO at HubSpot CRO and senior lecturer at Harvard Business School, interviews some of the most successful sales leaders in tech to learn the secrets, strategies, and tactics to scaling company growth. He recently had on the head successful sales leaders in tech to learn the secrets strategies and tactics to scaling company growth he recently had on the head of sales from open ai and that was a very interesting episode on the future of ai listen to the science of scaling wherever you get your podcast today a little bit more than that and uh that kind of took off like wildfire oh yeah everybody started to know my name and started seeing all the deals before

they hit the market as well. Interesting. So you would just take better quality photos and it was that simple? Yeah. Better quality photos and give people like the best thing about the perfect wholesale deal. So getting it from the seller, selling it to another person, you're that person in the middle is that end buyer never even having to walk the house. So if you can give a good enough picture base and a report, a lot of people can buy sight unseen. People are buying without going in the house? Oh yeah. We buy a lot of houses now sight unseen. Dude, I'm house shopping right now and I feel like I'll never do that, honestly. Yeah. It's a mixture of knowing like the ages of houses, different areas, different eras have different things that go wrong with them. And then being

able to basically run your numbers based off of pictures. Wow. Yeah. But that's probably the lower range, right? Like. Pretty much. Yeah. So I mean, I'm sure you're shopping for much nicer. And those people are flipping them, so they don't really care to live in them. Yeah. They're assuming worst case scenario on most things. So you're kind of just giving it to them and they're running full rehab numbers on them anyway. Yeah. Okay. So you started doing wholesale and then from there, what did you do? Yeah. So I started, so the inspection happened and then my uncle called me like a day before I graduated college. He was like, Hey, do you want to invest in real estate? I

know anything about it. I didn't really know anything about anything. And he wanted me to do it in Chicago. So six months later, we're doing a lot of inspections for investors, like I said, and I call him back and like, Hey, would you want to do this in Columbus, Ohio, where I'm from? And he was like, sure, let's find a deal. Let's do it. So long story short on this, I, we partnered up over the next 18 months. We lost a hundred grand on our first flip. Yeah. So we lost, man, it's funny talking about it now, but it wasn't funny back then. I lived in it with, I played soccer in college, a buddy of mine from the Netherlands. He lived with me room to room. We didn't have hot water. It was just, I had Instagram, I had my bio saying investor now. So I was like, this is awesome. I'm cool. So should have fired my contractor, overshot what the house was going

to be worth. Took too long. The holding cost ate us alive. The price, we sold it for like a hundred grand less. It was just a mixture. Wait, why didn't you have hot water? Just never thought about getting it on. So how'd you shower? We went to the basement and this, I mean, this is how stupid we were. There was a shower in the basement and we turned the head like sideways and we kind of just like go in the corner and wipe off as fast as we could. Yeah. I mean like 23, 24 years old.

Wow. It's just. It's only like a hundred a month, isn't it? Yeah. Yeah. I mean, it could have also been a thing, like maybe the water heater was broken or something. Oh, okay. So it was, I mean, it was a full rehab and we spent like 200 grand fixing up this house.

Damn. Yeah. And that was your first one you wanted to do? Yeah. I feel like for the fix and flips, you need a mentor or like some good experience. So I tell people now is like you need somebody to look over your shoulder, whether it's you partnering on a deal or you paying for a mentorship, whatever it is, because a lot of people don't talk about it.

There's a lot of risk in that, especially if you're borrowing people's money to do the business. Especially right now in the market, prices are dropping and your money costs still accrue every day. So if the market's dropping, people are losing money. I've lost money on a few flips that I've done lately. Damn. Yeah, I saw Pineda. He said he lost a ton on flips lately. Yeah, it's just part of the business.

And nobody really outwardly talks about that stuff. And I think it needs to be talked about a little more. Definitely. Because social media only shows you the highlights. They're not showing the lowlights. Absolutely. Yeah. So after that $100K loss, it must have taken you a while to rebound, right?

Yeah, so $100K loss. Moved back into my parents' basement. I'm probably 24 at the time. Still fell in love with the idea of wholesaling. So I'm still inspecting full time. So going out, driving around a beater truck, 2002 Honda Ranger with my dad every day. Learning small business as well.

So it was just me and him. So I learned about marketing sales, like how to knock on somebody's door and really kind of sell. So wholesaling kind of fit right in there and you can make money out of nothing. So fell in love with that. Spent my last $800 on postcards.

So basically we buy, we buy houses cash, send them out to people. Yeah. Those work. They do. They do. It's a mass marketing tactic, but absolutely it works. Yeah. You only need one house. You only need one house. So I got three calls on that. One of them was my next flip where, um, tried to wholesale it. Nobody wanted to buy it. And then the, uh, one of my old neighbors, I called her and she said she would fund it. We split it 50, 50, we made 50 grand. I took 25, she took 25 and then I, yeah. And then I went and bought a duplex, lived in one unit, rented all my bedrooms out, uh, lived in my living room and then, uh, learned the other side out and I was cash flowing in my first rental property.

House hacking. Yeah. Spencer Cornelia talks about that. Yeah. What was that like living with like six dudes in one little? I mean, it was, it was cool. I mean, I was still young. I didn't have a girlfriend or a wife now I had my dog. So really it was just like, Hey, this is going to be only for a set amount of time. This is a necessary thing to do. I don't have much money. Like let's bunker down and let's get it in. Did you always have the confidence that it would work out? Yeah. Wow. Yeah. Where did that come from? You think? Um, I come from an athletic background, so I was a, I was a pretty decent athlete, but I was always injured. So it always kind of had that back and forth of like, I know I'm good enough, but these injuries, injuries set me back. So I always had that same mindset with like, I've always done what I said I was going to do. It just always

takes way longer than what you think it's going to take, right? Facts. Always. So it just was one of those things of just believing in yourself and going for it. Dude, I'll say sports really creates a good mindset. Absolutely. Like it really helped me in business and in life, honestly. I'm so happy I did sports growing up. Dude, I mean, just having a coach tell you you're not good enough or like getting injured or getting benched. That's the same thing in business. You think you're going to go out and crush it. And turns out you get kicked in the,

you get kicked in the sometimes. Yeah. You get humbled because you get humbled really fast. Results are right there in front of you. Absolutely. And you'll see if you're, if you're about to talk or not with sports, what was your sport? I played soccer. Okay. Yeah. So I played soccer outside mid at university of Dayton. Damn. So you went D1? Yeah, I went D1. So you wanted to go pro? Kind of. I mean, my one roommate, he plays for the Colorado Rapids right now. He was the first round draft pick.

Damn. Fifth pick, yeah. He was nice. So, I mean, we were good. I just was always injured, man. So the dream kind of went away pretty fast. And I just knew I liked money. So I was like, okay, I'm going to go home, and I'm just going to work for my dad and figure it out from there.

Yeah. Is your dad still working? Yeah, he is. So I'm like, yeah. he had sort of kind of a come to Jesus moment. He had like 10 strokes. Holy. Like three, it's actually five years ago now. I was in Nashville at a bachelor party. And this was one of the things that kind of changed my whole perspective on like working for money. I just heard you talking about it earlier. I've always watched him since he was, when I was young, get up, work his off, but always be there for the family,

five kids. So always be there at the games, coach the games, all that stuff. And then I got a call from my mom saying, you got to come home right now. Your dad just had a bunch of strokes and we don't know how it's going to go. So there's an MRI that shows his brain and there's like a whole bunch of white dots. And they looked, they said, Hey, this is like landmines. If you ever played the game on the computer, like the old game. Oh yeah. If you hit the wrong one, it hits a bomb. Yeah. I know what you're talking about. Yeah. So they were like, if this was anywhere else, your dad would be like literally dead.

So I was like, holy, there's more to life than going and punching a clock and like working for money every single day. So I want to retire my parents and real estate investing is kind of that vehicle I'm choosing to do. Wow. That's awesome. And you built up a sizable portfolio now, $15 million, right? Yep. Yep. Just about. And how long? It's been about five years. So a lot of that has been like the last two and a half, three years. I started out with the house hacking and kind of building one at a time. And then as confidence grew, started making some money wholesaling and flipping, kind of started shoving that all into real estate. Yeah. It really seems like it's taken off. I mean, that's a quick five years, $15 million portfolio. It is. It was lucky because we were wholesaling a lot of deals. So wholesaling is you see the deals first instead of selling

them to another investor. At that time, when I say we have a business partner now, we were just like, hey, let's buy some of these as rental properties. And it was 2020, 2021 interest rates were in the twos and threes. It was the perfect time to hold all these rental properties. So most of our portfolios in like the four ish percent interest rate range. Wow. Which is great. That's really good. Cause right now they're seven, eight. Have you bought any of that range? Yeah. Oh, you have? Yeah. It's not great. It's kind of, It's kind of a necessary evil. So once you kind of ascend to making more money flipping, you're going to pay a lot of tax.

So either give it to the IRS or you buy some rental properties right off cost segregation studies, all that good stuff. And as long as you have equity, you can refinance in the future. So it's a short-term thing, but the long-term goal is still there with them. Yeah, seeing Ben Malaw talk about this on Ice Coffee Hour, he said he'd never taken profits off a real estate flip. He just keeps reinvesting it. That's crazy. And I'm like, what the hell? Like, how are you making money? You know what I mean? Yeah. I mean, you got to have active streams somewhere. So you got to have like a lot of people have education companies or podcasts or something where they're making a lot of their

active income, taking it and shooting it into real estate where they can get massive tax write-offs and the appreciation long-term. Yeah. So how are you feeling about the market right now? Do you see it coming back eventually? I like to control what I can control. So I don't think it's going to change too much for the time being, maybe like another year. But in Columbus, Ohio, where I'm from, you can still buy houses and they'll cashflow a little bit. But if you're in Vegas or maybe Phoenix, it might be a lot harder. So you got to get creative, but we're just running our numbers tighter. We're flipping them if we need to and not falling in love with deals that we would have kept a year or two ago, because things are always changing and they're not making more real estate.

Yeah. That makes sense. And are you taking loans out against the equities on the houses? Yeah. So we'll typically take them to a small bank or a DSCR lender and get a 75% LTV loan. So if it's worth a hundred, we'll refinance 75,000, keep 25% or 25,000 equity in the deal. And hopefully we cashflow. And that's interest-free, right? That's why people do that. Yeah. So no, they're not interest-free. So those are just regular bank loans. So if you want to go buy your house now, it's kind of the same product. It's more, more interest. A lot of people are doing interest only loans right now to kind of offset and make them cashflow a little bit. Yeah. Are you going to stick in Ohio or you want to expand?

I would say eventually expand. I'm very micro with my thinking, especially with real estate. I want to dominate my backyard. Columbus has been a top five market in the last five years. Really? Every year, pretty much. Oh, wow. How do they measure that? Just volume and then the amount of jobs coming in. So I mean, the buzzword, I hate that I'm even saying it. Like Intel is doing a $3 billion plant, chip plant in Columbus. Google is doing

one. Facebook, like there's a lot of big- Must be good tax benefits there. Tax benefit and it's affordable. So they say that the average salary for that Intel plan is $100,000. And for Columbus, Ohio, that's a great living. You get by a house, a very nice house is $400,000, $500,000. Damn. Yeah. Not out here. No. No, you're not getting out here for that.

Yeah. Especially LA, you're not even getting an apartment for that. No. So I mean, we get a lot of those people that come from those markets and want to invest in Columbus for those same reasons. Yeah. Wow. I didn't know that about Columbus. I got to check it out, man. What are the networking opportunities like? Are you interested in coming on the Digital Social Hour podcast as a guest? We'll click the application link below in the description of this video. We are always

looking for cool stories, cool entrepreneurs to talk to you about business and life. Click the application link below and here's the episode, guys. You out there? They're a little less than what we were talking about before, like here. Yeah. You got to kind of create your own destiny.

So I have a mentor. You've probably heard of him, Austin Rutherford. I think so, yeah. He started a small group of guys before he left town. We all get together and do some masterminding

and then I host my own networking events just to kind of get people together and make sure that we're continuously doing that. Cause it's not just every day, like, like in Vegas, you got to kind of create your own destiny or go out to other places to where you can get around that and keep your, I mean, just keep the eye on the ball. That makes sense. That's how I felt in Jersey when I lived there. You kind of had to do your own thing or go to New York city, have an event. Yeah. Are there any nearby major cities?

Um, you know, not really. Most of the people that I know that are crushing it are in Phoenix or Florida or North Carolina. And I think as the market changed, there used to be them all the time. Vacation masterminds, all these things. And now they kind of slowed down. I think people are hurting a little more. So that also brings major opportunity to bring something to the market as well. Yeah. So you must be one of the top guys in Columbus.

Yeah, I would say so. We've definitely made a good name for ourself. It's been happening pretty fast, but something that I always knew I was going to do. Yeah. What's your sort of long-term exit goal strategy? Yeah. So we want to continue to, so we have a bunch of companies within one. So we have our wholesaling company flipping, We manage our own rental properties. We have an Airbnb company. And then we also, there's one more I'm missing. We have an education company.

Got it. So we have a community that we started. So I really want to grow the community side. That's nationwide. But I also want to build a massive rental portfolio. So hundreds, 500 plus units, just to really kind of change my entire family tree. Yeah. Grew up worrying about money. I know you've talked about that before. Your change my entire family tree. Yeah. Grew up worrying about money. I know you've talked about that before. Your parents working off. Yeah. So kind of being that

one person in your family just to kind of flip the switch and say, hey, there's more than getting up every single day and working your off and doing it again day after day. I love that. And you see guys like Grant and Kiyosaki saying we're becoming a renter's nation. Absolutely. So that makes you want to go all in on the rentals. Absolutely. Those guys know what they're doing, man. Yeah. I mean, real estate is one of the coolest businesses because it's not recreating the wheel. Yeah. It's not some crazy scientific thing.

People have done this for hundreds of years. Yeah. Just follow what people do. Don't be a jackass and try to do more than what you can do at the time and stay steady. That's what I mean. Yeah. People think you got to be a genius to make money. But if you're good at one thing, like I've seen people make money off the dumbest. It's crazy. I mean, I always say that some of my dumbest friends are the best real estate

investors I know and entrepreneurs because they take an idea and they don't overthink it. They don't overanalyze it and they just like literally just go for it. And I'm just like, man, he really did that. It worked. So I used to get really jealous of dumb people actually. Cause, um, you never see them upset. No, they're always happy. No, they just don't, they don't know any better. No, it's crazy, bro. I've never seen them depressed, never seen them have anxiety. It's fantastic. It's like the trade-off I guess. For sure. But there is a balance cause you don't, you don't want to be too smart either. No. Those people go crazy. Yeah. I mean, I like to kind of sit in the, I don't like to overanalyze. I don't know if you're the same way, but I try to, I mean, they say speed implementation. Like

if you learn something, you got to implement and fail as quick as you can doing that. So you can learn and adapt or pay somebody for their time. Yeah. So you can cut the line on whatever you're trying to do. Absolutely. No, I'm definitely about learning. And every industry I do, because I've been in like six industries now, I'm not like you where you just stick to real estate, but I become top 1% within a year every time. It doesn't even matter what it is. That's crazy. I'm in a basketball league. I'm top 1%. I had a marketing agency, sold that for millions. When I was in crypto, did amazing. When I was in NFTs, did awesome. I even sold

masks during the pandemic, $15 million sales. So I immediately become the top because I'm learning so much faster than everyone. So what do you attribute that to? Just mostly speed, implementation, and being able to spot a opportunity? Yeah, I'd say both. Definitely speed, definitely learning, surrounding myself with the right people, mentorship, and I'm not afraid to fail. That's fail. Cause I just mentioned six wins. There was also six losses, but at the end of the day, it's not like I'm lucky. Yeah. I'm actually putting in the work. That's cool, man. I mean, that's definitely inspiring. I mean, what'd you say? You're 26. Yeah. That's insane. Yeah. That's absolutely insane. I'm 29 and people look at me like I'm crushing. I'm like, dude, I got so much

more. There's levels, there's perspectives. I mean, I see 18 year olds making millions. I'm like, dude, I got so much more. There's levels. There's perspectives. I mean, I see 18-year-olds making millions. I'm like, what the hell? It's insane. Yeah. I always say, I mean, these 18-year-olds that are wholesaling like crazy. I was like, dude, I would all want to kick a soccer ball and try to figure out where my next meal was back in the day. Yeah, for real.

That's attributed to a lot of the social media stuff you're putting on a platform that they can hear different types of people and implement and crush it by the time they're 21. Do you ever think about going back in time? Oh, s***. Not really, actually. Really? No, I actually don't. Yeah, I mean, I would change a few things, but I think everything obviously happens for a reason.

Yeah, I believe that too. But I think about it because Gary Vee always talks about it. He said he would go back to 18 if he could retain the same knowledge, but he would lose all his money. Okay. I think I would do it. Yeah. I mean, if I knew what I knew now, I didn't really understand real estate, like let's call it wholesaling until I was 23. I mean, if I knew that five years earlier, then I mean, I'd be way ahead. Exactly. Yeah. But I also feel like I've met a lot of good people along those lines. I wouldn't have met those people now and they've changed my life. So I like to, because relationships to me are very, very important.

Yeah. And that's huge. Have you burned any bridges? A few. Not many though, honestly. I mean, I try to stay very middle. I used to be just growing up a hothead. Okay.

And I would just freak out like that. As a soccer player, I could see that. Yeah. Because on the field you're... Yeah. And I would just, and then just try to contain it. That's a big thing in business too,

is being able to control your emotions on a day-to-day basis. Let everybody see you level headed. I mean, if you got to go home and scream a little bit, do it, but you gotta be, you gotta have your level emotions. Yeah.

I try not to, even if someone like screws me over, I try not to let it like linger. I mean, you could take it to social media, you could bash them, but like, how does that look on you at the end of the day? It's a bad look. And I know this

because I used to do it. And the last time I did it was like five years ago and it was just such a bad look. It's not a good look. It was over a thousand bucks. Yeah. And I'm like, what the f**k? Why would I post me getting scammed over a thousand? That makes me look like I'm broke. Yeah. And especially as you get older, you kind of just learn that, I mean, the petty stuff isn't worth it. You just look like a j***** a other people too. Yeah. And you're going all in on the social media branding, right? Yeah. Yeah. What made you want to do that? Um, mentor of mine, he was like, dude, you're doing cool stuff. And I mean, a lot of these influencers are not, I mean, they're not doing what they say they do. And I mean, we're doing a decent amount of business and

just every time I'd post on an inspection of like a house, like walking through poop, let's call it, uh, people would be just like flooded my, my, my DMS and it's like, Oh, there's something here. People like this stuff. And that's kind of like where I came to my brand, the real side of real estate. It's like, there's not a people sharing the losses. There's people talking about flipping houses, but not talking about the house. Like what's up with that? There's gotta be something. Yeah. You're real you're raw. You're authentic I feel like with some coaches if they haven't walked the walk I can't respect it at all. Like if you're not doing sizable volume, like I'd say at least millions you should be coaching

I agree. I mean, it's just so easy to do right? I'm gonna do something and you take a bunch of videos and you try and sell a course I battled with the fact of like starting an education brand dude so deeply because To me they get such a bad rep because of that exact reason. Terrible rep. It's horrible. If you launch a course, it's like a bad look. It's terrible. Yeah.

So you got to know that, I mean, you got to be good with yourself on the inside to then put it outward. So that was a big mental block of mine for a long time. Dude, it still is with me. Like I could have launched a course and made good money, but I'm still battling it. Even with social media and a podcast. Like did you have that mental block of like who am I and the imposter syndrome, stuff like that? For sure. I think every entrepreneur goes through it, right?

Yeah. Finding themselves a little bit. But yeah, with the course stuff, it's like such a bad look. But there are a few good people doing it. Yeah. Yeah. I mean, there's a lot of people doing it, but there's so many bad that are getting it bad. So many.

And that's what people focus on too. So then they associate the whole industry with it. Exactly. Yeah. So it's an uphill battle for you. Yeah. Yeah. But it's, uh, I'm, I'm used to it. Yeah. Get it done. What's your thing? Is it a course? Is it a program? It's a community. So it's, you get two courses, so fix and flip, and then also wholesaling. So it's not just like a, Hey, here's how you raise money. And then you buy a deal and you sell it. It's like 150 modules of actually being in houses, learning construction, all that stuff. And then you have a, if you're Slack. Yeah.

So it's a Slack channel of like 30 different Discord channels of real-time knowledge and help 24 hours a day. Oh, nice. Different experts from people that I know, people within my business. So if you have a general contracting question, I'm not answering all those questions. I have a GC that's done 2000 flips sitting in there and answering the questions. So-

That's impressive. Yeah, and giving people the community they need. So connecting others where they need to be connected and pushing them in the right direction. Yeah, that's cool. Have you ever raised capital for a flip or anything? Oh yeah. What's the process with that?

So, I mean, we raised, they call it private money in the real estate space. So basically if someone like you, if you had a million dollars in a savings account or a self-directed IRA, we would write up a note in a mortgage. You would, you would wire it to me or the title company. We would record the note in the mortgage at the title office or at the county office. And we would fix the house up, sell it, and you would make interest on your money. So that's kind of one of my favorite things to do is raise capital. It's kind of my thing in my business right now. So when you send the money, who's the title under whose name is it? So it gets titled under our name. So our business owns the asset, but that lender acts as the bank.

They're a leaner. Got it. So seller financing. No. So if you were to go buy your house today, whoever you get your loan through, let's call it Chase Bank. They have first right of refusal on that house. So if you don't pay them, they're taking it back in a foreclosure. Got it. Same thing with these private lenders. So they get recorded. So when you pull a title search, when you sell the house, they say, hey, Tom, you owe John Kelly $100,000. What's his payoff? So it's 100,000 plus interest. Got it. Interesting. So if I lose money, if I do that same scenario and I'm all in 120 and I owe you 130, I got to bring cash to close that deal. Oh, so you still have to pay no matter what? Oh yeah. Oh. I mean, technically no,

but that would be, that's how you get a really bad name really fast. So we've done probably 250 of those. Wow. Never not paid a lender back. And I mean, I've paid probably close to a million plus dollars in interest. Dang. You've done 250, you said? Probably, yeah. Holy crap. Yes. You've shaken a lot of hands. Yeah. With a lot of good relationships. Yeah. Great relationships. It's just like, you got to do good business and the social media helps it so much. They know I'm not a knucklehead. They know I've been doing it for a long time. And being a home inspector before this really helps. Yeah. That probably gives you a huge edge actually. Massive. Cause you can go in a house and know what's wrong. Nobody can tell me anything about it. Right. If I walk it or my team does, I can look at pictures and be like, Hey, this is what it is. Yeah. So you don't even

need an appraisal. No, you can just do it yourself. Yeah. Just do it yourself. Wow. That's a good skill. Cause I feel like most realtors don't know the actual values. No. And then, I mean, at the time I didn't think it was that cool because I was making 40 grand. It's kind of just earning your stripes, you know? Yeah. Learning an actual tangible skill that nobody can take from you. That's super important. Yeah, man.

That's cool. Well, what's next for you, dude? I just got married four months ago. Congrats. Thanks, man. I got a baby on the way. Let's go. Yeah.

I'm coming up, man. All right. Next year. Sounds good. So baby will be due in July. God willing, obviously. You want a boy or girl? I want a boy.

I mean, I think every guy says that. But my mom always has told me my whole life that I was such a s*** that I'm going to get a girl. So maybe a girl, maybe a boy. But either way, hopefully that's healthy. So she was supposed to come here today, but she got all sick and was hanging on the bed. She was all sad. Dang. Sorry to hear that, man. But that's cool. I'm excited about that next chapter. Yeah. So she was supposed to come here today but she got all sick and was hanging on the bed. She was all sad. Dang. Sorry to hear that, man.

But that's cool. I'm excited about that next chapter for me too. Yeah. Yeah, I'm thinking around 30. Yeah? Okay. You got a girlfriend or anything? Fiance.

Fiance? Yeah. Nice, man. Marriage is in two years. They were booked next year. You know how much these venues make, dude? You probably had to deal with this.

Insane. Dude, I did the math. We looked at two venues. They both make 18 mil a year. Yeah, because they're fully booked in Jersey. Okay. Where did you, are you doing Ohio? We actually did in Cabo.

Oh, yeah? Yeah, so we did in Cabo. It was actually much cheaper doing it at an all-inclusive. Highly recommended. Dude, yeah, mine was like 60 Gs. Yeah. I think it was like 40 to 50. For how many people?

All-inclusive, 80. Wow. It was, dude, it was amazing. That sounds sick. i just don't know if my everyone would fly to mexico yeah that's the that's the issue we had we had like one or two family members not make it yeah but it's always that one or two family members here like i don't think overnight yeah i feel that i'm struggling actually because i kind of don't want all my family there to be honest yeah did you deal with that too um a little bit yeah and talk to me

about that i mean just like toxic uncles and aunts like i mean we'll see it's tough but i mean at the end of the day like everybody's gonna pass away at some point and you're gonna be happy that you gave them that experience or whatever it is you know what you've changed my perspective i will invite them you're right though you don't get much time with your friend no you don't especially like aunts uncles cousins you only see them like once a year yeah and as time goes I mean, you said you're going to have kids by 30 or whatever it is. I mean, it's going to get less and less probably. Yeah. Well, dude, it's been fun.

Anything you want to close off with or promote? No, man. I mean, if you're looking to get into real estate, if you want to join a community that's really fun and growing and want to learn how to wholesale flip and eventually learn how to own rental properties, join the real side of real estate. You can find me on Instagram, primarily TommyHarr05. Just a down to earth dude from Ohio. If you're in Ohio, we'd love to grab a beer. We'd love to chop it up. We've got nothing to hide. Love it. You've changed my perspective on Ohioans.

Ohioans are cool, man. And then if you ever go to these mastermind events, we roll deep. They're just like, where do all you guys come from? And they all crush it. Oh, I'm going to check it. Actually, I've been to Cleveland, so I have been, but does that count? No.

Okay. Yeah. I come to Columbus. Yeah. All right. Check out Columbus. All right. Thanks for watching guys.

As always. See you tomorrow. Peace.