Epic Real Estate Investing - Deals, Money, and Mindset for Shifting Housing Market | 1218

Episode Date: July 14, 2022

There is so much happening in the real estate world. Is it even a good time to be looking at real estate? Together with Henry Washington, a real estate investor, Matt will give you a look at this market from a different angle, especially when it comes to deals, money, and mindset. Stay tuned for another great show! BUT BEFORE THAT, Matt talks about what to own when the dollar collapses. Are you ready? Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. What to own when the dollar collapses. This is something that's on many people's minds these days as rampant inflation is destroying the purchasing power of Americans' money, seemingly daily. So how do you save yourself, should the dollar indeed collapse? Well, I'm going to give you a list of stuff that you probably want to own in the event that it does. You ready? Let's go. Welcome to the all-new, epic real estate investing show.

The longest running real estate investing podcast on the interwebs, your source for housing market updates, creative investing strategies, and everything else you need to retire early. Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-E-I.TV. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to rei-aise.com. Here's Matt. So since its original rise to prominence in 1971, analysts have been warning of the dollar's impending doom,

as many economists tend to think that nothing could ever dislodge the dollar from its preeminent status as the world's currency. More, however, are starting to think that view is overblown and ultimately will be challenged. So the dollar could collapse. And by the time we're done here, you'll know what you should own if it does. Real estate. That's one of those things, by the way. And if you're still looking to get that first deal under your belt, I put together a free training just for you to help you get that first one done

and using my funds to do it to boot. And you can get it at matsfreetraining.com. So the US dollar price isn't just some nebulous concept that only concerns economists. It actually has a big effect on our everyday life. And anytime the dollar price weakens or strengthens your paycheck, the price of food and gasoline interest rates on loans and investments, they're all affected. And most economic experts cite a negligible chance of the dollar collapsing in our lifetime. But what if it does?

What should you own so that you don't end up with a bunch of useless paper? Well, I've got a list of 10 things to consider owning. The first one, gold, silver, and other precious metals. You know, precious metals like gold and silver have been used as a form of of currency and store of value for centuries. And in times of economic or political turmoil, precious metals are often seen as a safe haven asset. In this idea, however, it's being challenged more and more as symptoms of market manipulation

are starting to show. The second thing is foreign currency. And four of the top ones would be the Japanese yen. It's been one of the strongest currencies over the past few years as Japan continues to recover from its debt crisis. The euro is also often seen as a safe bet. This is because the Eurozone has been relatively stable compared to other parts of the world. And then there's the Swiss francs.

That's also been one of the strongest performers over the past few years, thanks largely to Switzerland's status as a stable economy during uncertain times of market turbulence. And then there's the Chinese Yuan, as it's been steadily on the rise in recent years. Number three, foreign stocks. Investing in foreign stocks could be a very wise move. After all, if the value of the dollar plummets, then the value of foreign stocks is likely those are likely to go up since they will be priced in stronger currencies. Number four, foreign bonds.

When it comes to protecting your portfolio from a potential dollar collapse, there is an option to invest in foreign bonds because they can offer stability and diversification as well as the potential for higher returns. Number five, Bitcoin and other cryptocurrency. You see, while gold, land, and various commodities propose a physical form of investment, you can diversify your assets by investing in Bitcoin and other cryptocurrency. You know, mainstream adoption, it's growing by the day, despite crypto's massive volatility, but some of the smartest people in the world are predicting cryptocurrencies to be the future of currency.

It makes sense to own summed. Number six, collectibles. Those can, they can hold their intrinsic value even when the local currency loses its own value. You know, gold and silver coins, jewelry, artwork, classic cars and firearms are recognized to be solid collectible hedges against a collapsed dollar. Number seven, income producing real estate. It's one of the bigger go-to options that can shield you against the devaluation of the U.S. dollar.

And here's why. It's physical. It has utility and people need it. And it will never be worth zero. So if the value of the dollar completely collapses, people will still need shelter and they will pay you for the use of yours with whatever currency takes the dollar's place. And number eight, land and agricultural commodities. When the dollar collapses, land and agricultural commodities will be some of the best investments that you can make.

Very much like real estate. I mean, people need this stuff. Number nine, off-the-grid living solutions. You know, a major economic collapse. It might require more than just investing in precious metals and foreign currencies. There is a good chance you will need to live off the grid away from your country's control and infrastructures, like, you know, growing your own food and sourcing water and alternative energy like solar-powered appliances and tools. And if it comes to that, you will.

will want to own number 10, bartering items. So when the dollar collapses, barter items will become increasingly important. You know, a friend of mine, an admitted and proud doomsdayer, is stockpiling, bourbon and bullets. He thinks they'll be as good as money if the country's dollar collapsed. You know, really, anything that would fulfill basic human needs would be great ideas, great things to store, you know, like matches or fishing line and hooks, or first aid materials and blankets and perhaps a good stockpile of MREs, meals ready to eat. This is what they fed us in the Marine Corps when we were in the field, and they'll store for three to five years, even longer if you can maintain storage of 75 degrees or less.

But there's a lot to consider, is what I'm trying to get at. Some of these suggestions represent more dire conditions than others, but first and foremost, don't lose sight that diversification is key. Don't put all your eggs in one basket, so to speak. Invest in a variety of assets that will hold their value should the dollar collapse. Another important thing to remember is that timing is everything. If you wait until after the dollar has already collapsed, it will be too late to invest or accumulate these things.

So you need to get ahead of the curve and start investing now. The sooner you do, the better position you'll be in when, or if the bottom falls out from under the dollar. And with all that said, they'll panic. It's easy to let fear take over when thinking about such a potentially catastrophic event as a currency collapse. And as I began with, most economic experts see a dollar collapse highly unlikely in our lifetimes, but it's possible.

If nothing else, income-producing real estate will put you in a good position should all hell break loose. And if you like some help, I've got some free information to help you get started. Go to cashflow savvy.com, grab the free investor packet there, and if it makes sense, pick a time to hop on the phone to discuss the next best move for you. Thanks for sitting tight while we pay our light bill.

We'll be back right after this. Boarding for flight 246 to Toronto is delayed 50 minutes. Oh, what? Like Ojo time. Play Ojo? Great idea. Feel the fun with all the latest slots in live casino games and with no wagering requirements. What you win is yours to keep groovy.

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Ever hear someone say, I have too much money? me neither. Let's get you some more. Back to the show. Today we're going to talk about the shifting market. I mean, there's so much happening. There's major shifts in just the last couple of weeks and more stuff, incredible stuff, just in the last 24 hours.

Is this even a good time to be looking at real estate? Because that's the big question on everyone's mind. Could there be something better out there? Right now, I'm going to look at this market from a different angle, specifically when it comes to deals, when it comes to money, and the mindset to win in this shifting market because it's going to take a different mindset. And I've invited a new friend of mine to chime it as he's discussing these subjects. He's been discussing these subjects for a while.

And he's going to be sounding off here today about the real estate craziness. So please help me welcome Mr. Henry Washington to the show. Henry, welcome to Epic Real Estate Investing, sir. Thank you for having me. This is fun. Let's do it. You bet. I really haven't even started yet.

having fun. So this is fantastic. Yeah, man, I've been sitting here listening. All right. Good, good. Well, I'm glad you made it. This is our first time meeting. We have a mutual friend that we had to connect. And so I'm glad we're here. So tell me a little about yourself. What's your history? What's your background? And did you end up here? Oh, man. So I would call myself a buying hole investor. I started 2017. Um, really out of panic. Realized, uh, after working, but for a while that I didn't have any money. And so I got married and was looking for a way to supplement some retirement, build wealth for my family.

And what happened was the wife wanted things that I couldn't provide. And I was like, well, I need to start making some changes. So long story short, found real estate through Googling after having to panic attack one night and said, you know what, I'm going to figure out how to do this real estate thing. It seems like people are figuring it out. If they can, I Q2 and bought my first house like 90 days after having a panic attack, which was late 2017. And then after I bought that first deal, I basically used Monopoly money to buy it.

Which by $401K for the department. Bought a house that was cash falling, had a property in it. Then the bank called me and said, hey, do you want to take out a loan against that? Equity is you can bring us more deals like that. And I was like, well, yes, yes, I do. And so I, you know, I went from a panic attack about money to, like, having a cash flowed and pass that. It's just like, like, $25,000 to go buy more in like 90 days.

And I was like, wait a minute, this isn't a strategy I need to supplement my retirement with. This is a strategy I need to use to retire now. And so we've been going big ever since then. And so it's almost five years in now. We've got about $7. 00 from a rental perspective, we flip about two houses to two houses a year. And that's essentially what my business looks like.

I'm small, small multis and single families mostly. And family business, man. Awesome. Mass. Are you still with the wife that she hang out and stick with you? Yeah, absolutely. I retired her about a year ago.

Okay. I retired right before her. So we did this full time. You know, I started coaching and teaching and then I was blessed to be. to be a co-host on the Bigger Pockets podcast or a co-host with them from time. So I get to do all kinds of cool stuff now because I had a pair of check and decided to buy house. Sweet. Yeah, I'd ask that question because when I got out of the music business and that money stopped flowing and then we had to file bankruptcy,

the wife didn't appreciate that. So she took off. So I was unable to keep mine until I got my figure out a little bit too late. But I found a better one. So it always works out. Good, good. Yeah, absolutely. Super.

And then even said something right there. I resonate with the panic attack thing. You know, is it, is a even like to some degree every once in a while, you know, as an entrepreneur, it could be a lonely business. There's a lot of, you know, we get a lot of freedom. We get to be our own boss. We make good money. But a lot of stresses and stuff comes along with that too. And so I'm going to talk about that as we go into the shifting markets.

I think that might be impacting some people. Absolutely. Thanks for sharing. Thanks for being here. So I went through and did a little bit of research before we got to. me. Oh. And I saw that you bid. I think you got your own podcast and you've got, you've been a guest on several and I had looked at others. So I looked at all these different subject that you're talking about. And so one thing was deals, finding off market deals.

Yep. Before we talk about the deals, what is your view of them hacker right now? I mean, because a lot has changed us in the last 24, 48 hours and it was already changing a couple weeks before that. So what do you see? Yeah, man. Real estate cyclical. It's always been cyclical. What we're saying now isn't really, maybe just things. that are driving what we're saying now is new. But real estate's always been cyclical. You're either going to be in a market where deals are hard to find, but it's easy to get money,

or where deals are easy to find, but it's hard to get money. And we've been over the past, you know, three months or so, we've been shifting from one to the other. So now it's starting to become an environment where traditional banks and even small local lenders are starting to tighten up. You know, they've still got some 2008 PTSD.

And so they're starting to tighten up with some money. You know, even, you know, hard-land lenders, private lenders. They're all just watching and starting to tighten up just a little bit. And so money's getting harder to find. But deals are becoming more prevalent, you know, as an investor, we're in the market to find deals. I'll buy situations, right? We buy situations that 10,000-hous is tied to them. It's so, you know, it doesn't matter if a market's hot, cold.

there's always going to be people who need to sell, not want to sell. When the financial landscape is more treacherous for people, then that creates even more, quote-unquote, situations. And so deals become more prevalent. And so, you know, I'm starting to get more calls of people saying, hey, can you buy my home versus, you know, a year ago I had to go make all those calls. That just means there's more situations. And we're trying to get proactive around how do we position ourselves from

a dollar's money standpoint, access to capital standpoint. So that if traditional lending, because I typically use small local banks to fund most of my deals. And so my banks are still lending. They're just requiring more from the borrower than they typically would. So there's some things working in our favor. And that is that even though supply is increasing with over week, in my market especially, there's still not enough supply to meet demand.

I'm fortunate enough to be in an area of the country that is growing substantially. And so even if supply is increasing, so are the number of people who are moving here every day. And so I'm in a situation where real estate prices aren't really coming down. Days on the market is increasing, right? But things are still selling. I'm still selling things. I'm just not selling them in like one day with 14, you know, above asking price offers anymore. And so what I'm seeing in my local market,

is that you need to prepare yourself by getting access to capital because the deals are coming and you want to be able to continue to buy. And yes, even if prices come down a little bit, as these situations are more prevalent, that means your entry prices can be lower. And so even though I was selling extremely high before because the market was allowing me to as people were paying for it, now people may not pay as much, but I also paid less for that properties in my profit doesn't really shift much. So prepare yourself by finding access to money as well.

Well, those. Perfect. So what you're also saying, though, is you know, you might have to reevaluate how you are comping out your deals. That's fast. Right? So if the money is harder to find,

then that means you've got to find better deals to where that money isn't so nervous. Yes. Right? So. Exactly. As I'm seeing right now, and it's kind of what I'll, I'll be touching on a little bit later, but I'm really talking about this with all of my students that, you know, you have, if we just took like the traditional vanilla wholesaling quick and dirty math formula, right?

You multiply by 70% you subtract your repairs, you subtract your profit, and then you kind of have your cash offer. But you're starting with that after a pair of value number. And you're starting, that's today's number. But if you're going to be doing the fixing and flipping yourself or you're going to be selling it to a fix and flipper, you really have to kind of project what's that. after repair value, going to be two months, three months, four months from now,

because that could be a very different number if the trend that we're seeing right now continues. So you're going to have to buy your deals deeper, right? Absolutely. You've got to get really good at the comps is what I'm seeing and finding, it kind of shifting your definition of what's a deal.

Because if we messed it up six months ago, the market saved us, and we're still able to save it, and we look like a genius, right? Yeah. Now we've got to be real real estate investors again, and we have to really understand the numbers on how that all works.

So with the deals, you know, you say your phone is starting to ring a little bit more with some incoming inquiries. And we certainly just saw that last 48 hours here, 72 hours. People that said no to us just two weeks ago. All of a sudden said, wait a minute, wait a minute. How did that seller financing thing work again? Right. Yeah, right. So what's your main resource?

What's the main pool that you're fishing in for your deal right now? Yeah. So we do Directed Mail Marketing and Co-Call it's typically what we're doing. I have marketing and so I just really focus on

finding people with equity that have the footprint size, house, and or multifamily that I'm looking for. And I don't really filter for much motivation anymore because I found that I can afford to cast a wider net

And if I cast a wetter net, then I find all kinds of deals in different situations. I bought properties that needed absolutely no renovation. And that were in really good neighborhoods that were built in the 2000s, right? And those are properties that would have filtered out of my search before. But now, I just sold one that I bought that kind of fit that criteria. And so what I found is that in my market, if they have equity, I want to send marketing. What kind of offer makes sense for them?

All right. What market are you in, by the way? I'm in northwest Arkansas. Northwest Arkansas, okay? And you just say like you're nothing really efficient for motivation right now. How is that turning into a deal for you if there's not like a seller that needs to sell? Is it just the numbers work out in your market or is there something else I'm missing? No, no, you're not missing it.

We're not filtering for motivation, but the people I'm buying from have motivation. Ah, got it. So you're marketing, your initial screening of who you're sending to, who you're calling. You're not filtering for motivation. You just called for equity. It's going for equity. Because when I was fishing for certain motivation, I felt like I was leaving deals on the table for maybe other types of motivation

that weren't in my search. And so instead of trying to get super fancy with all the different types of motivation, I just broadened my search in general. If you've got equity and your property is a footprint size type that I feel like I would like to buy, because obviously those first-time home buyer type homes are the ones with the most buyers, right if you're going to flip a property and even if you're going to rent those are the ones that people like to rent and so

if your property fits that footprint and you've got a decent amount of equity then you're probably hearing for me right and I would imagine that's probably going to be even more effective now because people that interact or come up to a situation

where they find themselves where they need to sell right absolutely the things that are causing them to need to sell which are the traditional things we look for and try to filter for motivation. Those things haven't yet. Yep.

Is that what you're finding? So that's starting to be. Yeah. We're starting to see people that maybe we talked to a while back are getting back a whole of us or just by reputation on being somebody that buys distressed properties or situations. Like, I'm getting people that are reaching out to me and saying, hey, like my time, I just bought a deal last week that my title company sent to me because they heard.

that someone might want to sell their property, and it was a property. Again, built fairly recently, all great, great property, clean on the inside. They just wanted out, and they wanted it out quick. And so we bought that. I'm changing some light fixtures. I threw some carpet in a couple of bedrooms,

and we're sticking it back on the market. Like, it's just the situations are there. Sweet. So the broader net, right, traditional marketing channels, and it's just bringing in more opportunity just by nature of what's happened, right? Yeah.

No, if you're brand new, I don't recommend just starting with such a broad net. It's expensive. Like, marketing to a broader audience is going to cost you more. I think you should niche down if you are just starting out. But I've been in, you know, five, five years in the business would be multiple deals. I'd much rather just cast a wide net at this point. Yeah. It's the best way, like you're saying, if you got the means, right? Super.

All right. So deals, nothing really changing there, but expect a whole lot of money. more opportunity if you can just stay consistent with what you've been doing. Um, second thing would be money because money is getting more and more expensive, right? Yep. And so, um, you say you're working with banks at any other sources of money. Yeah. Um, you know, the we started, I started to look for some private money options, maybe about six to eight months ago, we started looking and so we brought on a private money

lender that we tested out a couple of deals with earlier on. So even though I could have got pretty favorable financing from a bank, I wanted to test financing some private money with this guy to build some trust so that if the environment changes that, you know, he and I have some history. And so luckily that we took that approach, you know, the whispers weren't as loud as they are now back then. So I'm not saying I'm some genius who started to do that. It just kind of all fell into place at the right time. And so now we're working with that a private lender would do some deals with. I still use the small local banks for certain deals. I've got relationships with a couple of hard money lenders.

I haven't done a deal with them, but we've had the conversations of that if I need to shift, I can shift over to using them. And then we've also been leveraging lines of credit both secured and unsecured. So one of the benefits right now is that, yes, the market is shifting, but in a lot of areas of the country, the values of property have to come down much, if any, from where they were three,

four, five months ago, right? And so if you've got a property that's got equity in it because you owned it before this crazy, you know,

spiking prices happened, you, it's still a good time to be able to look at leveraging a HELOC and get a line of credit against that equity, just in preparation for,

Or as you're searching for properties later because the beauty of a helock is you don't pay anything unless you use some of the money. And so just having access to it doesn't cost you anything but the closing costs for that for their helock. And then you've given yourself some buying power for deals as they come along later. And so you could still get favorable appraisals on these properties because values haven't come down or haven't come down much in certain. And interest rates are still, I know people, they have. I've doubled from where they were, but they were, like, crazy low like we've never seen before. And so going from three to six, like, it's still six. It's not that big of a deal, y'all.

Here's the other thing where I think people are getting a little bit concerned about the interest rates that might be misguided or misdirected attention. There's very few times in history where the interest rates are lower than the inflation rate. That's right. very few times and is you know we had our interest rates have doubled but our inflation rate is quadrupled as of this morning we're at 9.1 you're borrowing money at 6 that's a net negative 3% you're getting paid to borrow money yeah there's not a better i mean you have to take advantage of this opportunity um so i don't know i'm preaching to the choir i know no no no i say it say it again for the people in the back man. I get excited on the stats and they start geeking out on the economics.

And you know, when I was a younger investor, I was just like, it was all about the flip and how much cash that I put in. And then I started to really understand how wealth is created and how the economy works and how you want to be on the right side of the economy. You know, the powers that be or are freaking out. They're telling me that look at the cost or the, the wage increase has gone up. Three percent here, five percent there. And I'm like, but it, inflation is. percent you're still losing right if you own real estate your way ahead regardless of what you're paying the salary it's the best hedge and yeah inflation sucks i get it right and i just the argument that

kills me is that like interest rates are too high i shouldn't buy real estate right well within perspective six percent is still pretty cheap for money and you get to lock that in for 30 years our parents paid like 12 13 percent so like chill out it's not that bad and then be like have to People that are saying that have like a Mastercard that they're 10, 25% interest on, like without looking. So I don't want to hear that. Right, right. You know, as you look at what the interest rates are doing to the affordability index, right? It's pushing some buyers out of the market.

I just saw something that said that the number of cancellations of contracts is, is increasing because, you know, rates are changing in the middle of their contract. Yeah. But if you like what you said earlier, like the supply. is not going to have some significant boom to where it meets the demand. We've got many more people than we have housing right now. And one of the stats I always point out to is, you know, the peak age of the baby boomers is 29 years old. And the average first time homebuyer age is 31.

That means over the next 24 months, we have more demand for housing than we've ever had in the history of the country. Right? Absolutely. And so when we're also operating with this 10-year debt, deficit on the supply. Like the building has been so contracted for the last 10 years. My point being, there's a long story, but my point being is as the affordability pushes people out, well, we have to me, they still got to live somewhere. Yes. So they're going to go rent.

Right. And so I can really see this whole bidding war thing move from the sales market over to the rental market because they need a roof over their head. And so this is the time where you want to have investment property, right? Absolutely. But there was, I mean, in my eyes, there's always a time to buy. It's just a matter of what you buy and how you buy it. That changes, right? And you're 100% right. We just put a duplex on the market that I would say, so we had a tenant in it.

But a tenant in one side, and then we had rented one side out. So we rented one for 1,200. And it might have took me like three weeks. I didn't get very many inquiries as well. We had both sides available right now, and we listed it for 12 again. and I couldn't, like the amount of emails that I was getting in requests was insane. And I was just like, okay, so I've clearly underpriced this. Like, it's just not like the demand for rent right now because of exactly what you're talking about.

And it's going to continue to go up because rents always follow price and they're a little behind it. So, you know, you've got landlords who are locked into leases right now who have had a chance to raise rents yet. those leases are coming due and if they have to do a renovation on that property or even just a light renovation fixing it up materials cost more labor costs more now than it used to they've got to put more money into it you very believe so if you can get your hands on something then hell's it now is the time and i appreciate it i'm always looking for people to come on the show that i disagree with but it's yeah I mean, we're totally like with that. So going into this new market, and I have a unique perspective. And you probably do too as a coach, right?

That, you know, you're out and you're buying deals and you're selling deals. We have a turnkey operation. So we kind of have a different type of consumer there that's coming in, the busy professional, the doctors, the lawyers, that, you know, just the people that got jobs and, too busy to go out and do it themselves. And then I also got people that come in and want to learn how to do it themselves.

And so I'm getting kind of the picture, a grasp of the mindset. And there's a lot of, even though there's a lot of people listening right now that probably agree with us and don't really doubt us. But when it comes time to actually take the action, there's still a lot of nervousness. They're still a little bit scared.

There's a little insert, right? So as we go in, I'm trying to share with people, like, this is the time you really want to start buying. Right? The last three, four years when they're all riding high and everything and everybody wants in, it's like that might not have been the best time, right? Now it could be a much better time as the deals become better. And now it's a, I don't know, buy and low, you sell high, right?

Yeah, clear. That's the goal. So this is when the time you want to get in. What is the right mindset? What? How are you talking to people? How are you can not necessarily convincing them, but how are you getting prepared to for what's coming? Yeah, man.

So for me, it all starts. with, for me, it all starts with a decision, right? It's genuinely making the decision in your mind and in your heart that you are going to be a successful real estate investor, right? No caveats. No, I'm going to be a great investor in this market or a down market or up market or it's a I will be a successful real estate investor. I will buy a property next three to six months. If you write that down every day, say that every day, you will have to worry less about the how. Because the how is what's scary. It's what's scary people. It's what's keeping people from jumping in because they understand the market conditions are, you know, changing. They're different. They're scary. Right. There's a war. There's inflating.

There's all these things that are scaring people. There's a, you know, the pandemic still. Like, there's all these things that are scaring people. And they want to know how. How can I do all this giving all these things? And the answer is, there's no perfect answer, right? But if you tell yourself, I will be a successful real estate investor, you decide, you make a decision.

You break down the word decide, right? the suffix of that word is decide, which means the kill-off, which means there's no other option. You're doing it. And when you tell your brain that, you're programming your brain to go and figure out how, right? And the way it does that is now that you've decided you're going to do it, right?

Everything you listen to sounds different. Everything you see looks different because your brain is trying to figure it out. Right? And so maybe you listen to this show and you go, Oh, Henry talked about small banks. That might be the perfect strategy. Let me go call a couple of small bikes and see what kind of loan terms they have. And maybe it's perfect.

Maybe it's not, right? Maybe you're reading a book and something jumps off the page. It goes, oh, that's the perfect way for me to get a tool of him. Right. But you've got to program your brain to start listening for those things, right? And it's all a big mindset, like, trick that you need to do to tell yourself, right? Quit trying to line up all the pieces. and just decide you were going to be a successful real estate investor.

And it's, you know, I forget what they call it, but it's the red truck theory, right? Like, if you want to buy a red truck and you don't ever see a red truck on the road, I promise you the day after you get a red truck, every other truck you see is going to be a red truck. There's no more red trucks today than there was yesterday. Your brain's just programmed to find them right. That's your reticular activator. There you go. Yeah.

Part of the brain that's responsible. for awareness. So train your flux capacitor to look for red trucks. Sweet. Well, so how is your business changing? Or are you changing anything? You're just staying in the course. What are you doing to prepare? Or are you just like same thing? Yeah, so we talked a little about it. So how I'm finding deals, not changing. That's never changing. How I'm funding deals, that's going to change. Right? Because it's dependent on somebody else making the decision. I can say I want to use back money all day long. If a bank says, I don't want to get money, I can't. Right. So, so we are doing exactly kind of what we talked about earlier. So I am

lending up secured and unsecured lines of credit. There are tons of small banks out there, and they can be small on a scale of just local to your town, small on a scale of a region of the country, right? Look for banks with like $3 billion or less in total assets and call them. And see if they, A, do commercial loans for investment properties and what their typical loopholes are. And B, be they do unsecured lines of credit. Some banks are still doing that. I just got access to a $100,000 line of credit through a regional bank, no docs, unsecured. I just had to provide them at my articles of organization and answer some questions about my business.

And they gave me access to $100,000, which I can use to invest if I choose. I don't have to pay interest on that money unless I use some of that money, right? And so we're stacking up money in the event that traditional lending dries up. If it doesn't, and I could keep using my bread and butter investment strategy, then I'll do that. But if not, then I have some other options. And so we've got a couple of, we're preparing unsecured lines of credit. We're prepared secured glass of credit. We're using, we're working with, you know, business lines of credit to be able to leverage,

um, well, using your business credit so that, The debt to income doesn't affect my personal credit, but I still have access to the funds. And then as deals come up that are just can't miss, I need to buy this deal. I need to do it quick. And these banks aren't moving quick right now because they're scared and they want to underwrite the crap out of everything. And it's going to, you know, they want, you know, urine samples and blood types and all these things to verify the numbers.

And you might just need to close on something quick because situations typically require you to close quick and to pay cash sometimes. And so we're just prepare it for that. And it's a good time to do it because we haven't fully hit this kind of spot where the banks are just going to say it's just it's going to be really hard for you guys to get money guys. Right now they're still going. I think there's one thing when people come into real estate and there's a lot of people that want to get started and they think money is their biggest barrier. That's the biggest hurdle. Like if I just had the money I could go out and do this. And I think what people fail to realize is there's another side of this business,

the people that got the money, they're like, I wish I, I, I wish I had to find more people that had better deals that I could get my money to. Yes. Right. So maybe money is tightening up, maybe. It's certainly getting more expensive and incrementally, but it's moving kind of quickly. But still, if they can't find someone to give their money to, they go out of business. They don't want to not give it.

you money. They have to lend. Yes, they have to lend. They get up every day and they, they kiss their spouse goodbye and go off to the, to the, their little lending store. Yeah. Like, gosh, I hope somebody calls me today that's got a deal that I can give my money to. Yes, they have to. Right. Absolutely. Those are the two big problems. If you can solve both of those problems, you can write your own ticket. Mm-hmm. Deal flow and money flow. Yep. And I, I really believe that in today's market where supply and demand is so lopsided, the person that has the deal under contract actually has more control and more power in the transaction than the money person.

That's right. Yeah, that's right. Absolutely. So the exact reason that you said is that, like, especially the smaller banks, that's why I talk so much about them because, like, they've got to lend to small businesses to stay in business. Yeah. And yes, they might tighten up, but if they tighten up too much, where are they going to

make money. However, they're going to provide a return. So finding, continuing to build those relationships, and if you can bring a good deal, like, it doesn't matter if the market's crazy. If they go, well, you're wanting us to lend on something that you're buying for $200,000 that we clearly believe is worth $400,000, we're probably going to lend to you. Because if you give up that loan and you don't make your payments and they take control of that asset, they'll make way more money selling that than they ever put off your interest payments. Right, right. for sure and it's been a pleasure if people wanted to get in touch with you what would be the best way for them to do that hey thank you man yeah the best way to reach me is on instagram i'm at the henry washington

on instagram or just check on my website henry washington dot com you are by henry washington by henry washington oh gosh i've been talking to the wrong guy the whole time yeah very good it was nice media and gosh i wish i was on instagram still they kicked me off and i still have no provide this day to this day. Anyway, enjoy over there, Henry, and we'll talk again. And thanks for being. I appreciate you. Thank you so much. You bet. Take care.

And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you. And so do I. Health, peace, blessings, and success to you.

I'm Matt Terrio. Yeah, yeah, we got the cash flow You didn't know home for us, we got the cash flow This podcast is a part of the C-suite Radio Network For more top business podcasts, visit c-sweetradio.com