Epic Real Estate Investing - EPREI 020 : Real Estate Investing with Richard Haynes Part II

Episode Date: November 11, 2011

Matt resumes his real estate investing discussion with "wonder boy" Richard Haynes of Hermosa Beach, CA. Listen in as Richard answers YOUR most burning questions about real estate investing. http://FreeRealEstateInvestingCourse.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Epic Real Estate Investing Podcast, episode 20. You're about to meet a man that can show you how he took control of his life and financial future and how you can do the same. He's never been on TV. He's not a millionaire, and he does not know Donald Trump. He is a full-time real estate investor, newly discovered offer, and family man. He does not report to a boss. He creates his own schedule and takes his family on a few vacations every year.

He got started investing in real estate with almost no money in a really crummy credit score, and he's going to show you exactly how he did it and how he continues to do it. You will have to work. You will have to be responsible. However, laying by the beach sipping fruity drinks is a reasonable goal without further delay. Your guru. Sorry. Your guide to a better life through real estate investing. Matt Terrio.

Matt Terrio. Hello, and greetings from the Epic Real Estate Investing podcast, the show that's going to show you how to build wealth through creative real estate investing. So you'll have the option to realistically retire in the next 10 years or less. And enjoy the good life while you're still young enough to do so. My name is Matt Terrio, author, full-time real estate investor and family man. if this is your first time listening to the show, you're going to want to do two things. First, go back and listen to Episode 1 for the ground rules of the show. And two, download the free real estate investing course, how to do deals, no money required.

You can get that at free real estate investing course.com. It's a step-by-step course of where I unveil the mystery around doing deals with no money or credit. Okay, today, we're going to jump right into it as we resume our interview with 26-year-old Richard Haynes of Los Angeles, California, as he answers your most burning questions. You know, if you miss the first half of the episode, it's highly recommended, you go back and listen to it. And that would be episode 19. So without further ado, here's the second half of the interview with Richard Haynes.

Enjoy. Okay, cool. Richard, this has been an awesome interview. And you know what? I sent out a survey to all of the listeners. And I know they're getting a ton from this conversation. but they'd sent me in some of their most burning real estate investing questions, and I pulled out some of these, and I wanted to know if you could help me answer them.

Would that be okay? You got enough time? Yeah, that's great, for sure. Okay, cool. And, you know, and if you have an answer, great. If you don't really have a good answer, you can say pass. I'm okay with that as well. Okay.

But I did pull out, I did extract some of these questions based on what I know of you and what your strategy is. So I think that most of them will apply. And we'll just kind of address them as thoroughly as we can and, you know, just create an amazing, valuable experience here for our listeners. Great. Let's do it. Okay, cool. So for someone, this is why I pulled this one out for you, for someone just about to graduate college or having just recently graduated, would you recommend they invest part-time to begin or jump into it full-time? Oh, that's an easy question.

It's part-time. As much as I'm a big person saying, hey, become an entrepreneur, you know, run your own business, if you don't have any experience in real estate and you're just graduating college and really don't have any business experience or know what it's like, you know, being in the real world, and, you know, it's tough out there and you're prepared, I really highly recommend part-time because it will allow you to work for a company where you're going to have some solid cash flow to help pay for your bills

and maybe start saving up money to start your own business. And additionally, it allows you to start researching and looking for deals without the pressure of having to do a deal. So if you were doing it full-time and you're like, I'm not making any money, let's do this deal because it's the best thing I found. I need to pay rent next month.

and then you end up doing a bad deal. So I think 100% start part-time, start educating yourself, start building your database of bird dogs, vendors, start building your knowledge of the market, and then have your own job and make sure that you're set being able to pay your bills and save up some money. And you'll know when you're ready to them. Once you've done it long enough and done some deals part-time

or done one or two, you'll know when you're ready to break off from your job and do it full-time. Awesome. Good answer. You had mentioned about you, you talked a little bit about your CPA and about your lawyer, and then now in this answer, just this last question you had talked about, you know, building your network and your bird dogs. What, what, here's the question. What were the steps in growing and selecting your power team? Who came first and why? And what's a good way to structure payment of professional services or legal advice if initial funds are minimal? Okay. I think the number one person to start when you're building your team is a contractor, the guy who's going to do your fix-up to flip or to get the property ready to be rented. And why I say that is is because I think the biggest weakness of every beginning investor is once you've educated yourself on the market, you know what a good deal is. most people don't have experience or can walk into a property and say, yeah, this place needs $25,000 or, oh, yeah, this place needs $50. They don't know the difference between either.

So you really have to find a contractor that's going to be able to walk through with you on your first couple deals and educate you on what type of costs are, along with someone who has a good reputation that you can trust that isn't going to overcharge you on certain things. So I think that is the first one that you've got to find because it's going to help educate you even more with deals and finding a great deal and making sure you don't get screwed up on your budget. And then from there, developing your team, you're going to find them through networking. And in a way, sometimes it's guess and test with people. I mean, I started with one eviction lawyer doing my first eviction, and he did an okay job,

and I found another lawyer who said, hey, let me try one for you, and he ended up being incredible, and I use them all the time. So you can kind of fluctuate from lawyer to lawyer, your accountant. You know, try them out if they're great at handling your books and a lot of payroll things, and they show you where they're saving you in taxes, and they speak to you. and really help you learn how to run your business, that's an accountant you want. If it's someone who doesn't show you, doesn't help you,

is a little bit harder to get in touch. You won't. So it's really kind of you organically grow your business through referrals that other people send you and networking that you do and just people that you meet. And finally then to answer your last part of question, if funds are minimal, the way that I kind of worked when my funds were minimal is,

and I tend to be a younger guy, so my circles tend to be younger people, but my lawyer is my age. You know, he graduated from law school about a year and a half ago. But I know that his family does real estate up in Northern California. He's wanted to do real estate his whole life. He wants to be one of the top lawyers in California. And he works for a high-priced Beverly Hills Law Company. Well, guess what?

He's young and has a year and a half an experience, but he's got a head lawyer that watches everything he does. does, but I get charged with a 75% discount. So the keys to when you have a minimal budget is go find younger, driven people who you can tell are smart, but you get them at a discount because they're trying to build their business. And you don't have to go to some 55-year-old lawyer who's been in the business for 25 years charging $1,000 an hour. You can get a guy who's got the same smarts, maybe a little bit less experience, but

being watched over by that guy making sure he doesn't have. make mistakes. And he's charging you $200 an hour and you're basically getting the same type of legal advice. So find young, talented rising stars that are trying to build your business. You're going to get great service, great advice at a steep, deep discount. That was great, great answer, Richard. Thank you. You had said, you talked about the first person in your power team and you'd set a contractor. And I've never, my answer has always been when people lose money in real estate, they typically lose it in two different places, either through a bad contractor or bad property management. And the way that you'd answered that, I'd never

thought of, that's the first people you should go find. Do you agree with that? You're saying that the contractor or property managers, the first people you have to find. I'm thinking that I was just kind of putting my answer to people's questions, a slightly different question, and then your answer and combining it with regard to building the power team. Everyone always asks me, how can you invest in Illinois? How can you invest in Detroit? Especially when you've never been there, you've never seen the properties. And now I'm going to Memphis, and I've just purchased this property, and I haven't seen it either yet.

And my answer to their question is always, you know what, I invest where I have the relationships, not necessarily the market because the primary place where people lose money in real estate, particularly when investing across state lines or out of their area, is they have bad rehab team or bad contractors. That's the big place where you lose money. And second is bad property management. And, I mean, would you agree with that part first? I agree with both of those because, you know, you have to have a contractor that you trust

and you have to have property management that you can trust because those types of jobs that you need, those are the places where people can really stick it to you and take advantage of you in terms of contracting and fees and how many things cost. And then property management, you know, those are people who can just be like, yeah, they're collecting a fee and you don't know if they're really, you know, attending to your tenant's needs or not skimming money on the side from the tenants who may not be paying rent and stuff like that. So, like you said, you've got to be able to trust them. You've got to know that team.

You've got to have a strong referral or someone who's done business with them before that you can trust their word. So, yeah, I agree with you 100%. Those are two extremely important things when you're investing, you know, across the country. Right. And my conclusion that I was drawing was when you're going through the steps of selecting your power team, I mean, those are two areas you want to be ultra, ultra careful with. Yes. You want to be very careful in those areas for sure.

Right. Right. Let's see. Next question. Kind of a unique question, and I'm not sure where they're going with this, but obviously they have a situation where this is applicable, so let's see what happens. Can you work together with the competition in your area to get started and learn from them? Yes and no.

But it's a great question. And like you said, very, very unique. And the reason why I say yes and no is no, because your competition probably doesn't want to work with you and teach you the business. But let me tell you how basically I used the competition to help grow my business and learn the business. Basically, my first real business plan of where we were buying single family homes in L.A. knocking them down and building brand new duplexes and putting a low-income tenants into them. The business plan was written by me, all sorts of other things that was all original, but there was another big time investor in L.A. who was already doing this business plan.

And I said, well, he's the biggest and the best investor in this field doing it. Why do I have to reinvent the wheel? Why do I need to find some sort of, you know, the unicorn in the woods business plan that no one else is doing in LA that I have no experience doing? I literally copied the duplex that he was building. I found out through different filings who his architect was. I got, you know, I went to the construction site when no one was there and just the workers and found out who the lead builder was on it. And I basically acquired their whole team on who did these duplexes for them. And I basically, you could say steal it.

I mean, I didn't do anything illegal, but I did what they were doing. And it gave me a lot of credibility because they were successful deals. I knew they'd be successful deals because they were doing it, and they were the best investors in the area. And it worked out well. And then I have another circumstance where when we started flipping homes, the biggest home flipping business in Southern California, I ended up hiring on two people that used to work from them.

And I drew a lot of information on how that company ran their business and how they did the flipping, and I use a lot of it today. So, no, the competition isn't going to directly teach you or give you any things, but if you go and hunt down what they're doing, find out people who have been scorned by them, figure out who they use for their business, you can learn a lot very quickly and do a lot of successful deals knowing that they're doing the exact same thing.

Right. Great answer. Good story, too. Okay, let's see. What's next? Next question is, okay, so what markets are easiest to rent houses? For example, near college campuses for students, low-income areas and cities, near better schools and school districts in the suburbs.

How do you pick your rental market? Wow, that is a tough question, and I know you have answers like this all the time because you talk a lot about real estate, but as always, the default answer is depends. Right. Because it's like, you know what, I'll buy in a college area at the deal is right, I'll buy in a low-income area if the deals right. It really depends. But an investor that I do read in one of our periodicals,

she talks about, oh, man, it's kind of escaping me, but she basically calls them islands of properties. So you've got these islands where properties trade higher, and you've got to what she calls commodity properties, low-income properties, where they basically just trade on saying, hey, you know, every one-bedroom apartment rents for $800 and you're the same apartment, you know, in the next mile, you know, as everyone else.

And it's really like how good your marketing is. So it depends. Right now I like, and the reason why I like lower-income areas right now is because in Southern California, there is a demand for low-income housing. You know, here in Southern California, where we're a little bit more of metropolis. there's no more land to build on homes. So you have these low-income residents who need places to live. And during the boom, everyone was buying, you know, building for the most part

these nice, brand-new single-family homes. And Noam was building apartments or areas for or things for low-income residents. So in Southern California, I think there is a lack of supply for low-income rentals. And so that's what I like to play in right now. Plus, you get higher cash flow from them because people are. don't want to deal with low-income areas. But, you know, in other areas where if you live out kind of in more rural areas, you might want the place closer to the college where you know students want to be living

close to the college, or you maybe want the upper echelon place to rent out because no one wants to live in a dump when, you know, it's a rural area, and there's not a lot of renters out there. So it really depends on your market, what you want to do, and you've just got to do your homework to figure out what really. is the best place to start putting your money and renting out property. Right. I mean, it really just comes down to supply and demand.

And where the demand is high, that's probably where you're going to get the best return. Exactly. Right. So this is a perfect segue into this next question. You talked about low-income tenants. You talked about college students. And they each come with their own pros and cons. And this question is, how do you screen your renters?

How are you selecting mature people who will take care of the place? That's another good question. And I screen renters more thoroughly, depending on if they're a market rate tenant or a low-income government-subsidized tenant. I obviously always adhere to the protective classes and we don't discriminate. But in terms of if you've got a low-income tenant that's on government subsidies, where it's section 8 and they're paying a portion of their rent. I don't pull credit reports because most low-income residents all have low credit scores, but the fact that they're backed by the government,

the fact that I'm going to be getting my rent from them, even though it's a little bit more of a hassle, I don't check their credit scores. So that's the screening I do. It's basically going, you know, if their application, fill out, you know, they don't have a drug history, a criminal history, and they pass all of the things that they need to pass on our application, I'll rent to someone. So actually, in some cases, if you've got your nose clean for the most part in Section 8, a low income, you're going

to get offered a unit if we have it available for you and you've applied. When it comes to market rate tenants, college students, you know, a normal person. like myself, who's coming up and applying for, you know, a market rate apartment, I do do credit reports. I do try and get background checks if I do have those resources. And obviously my applications are a little bit tougher for market rate tenants. And the reason for this is just because you don't have that government backing. You know, there's professional renters out there who want to, you know, live for free.

So you really want to make sure you do your homework on them. How do you pull credit reports as an investor? I mean, the government won't even let me allow to pull credit poor reports because you have to have certain security systems, and they come in and inspect you. So I actually pull my credit reports from the local apartment owners association. That association, since they have so many members, took the time to put up a credit reporting company within theirs.

It's all by government guidelines, and then I can send in, you know, via the information on resident, or excuse me, potential applicants to then pull their credit scores and go off of that. And then obviously you've got to make sure you have a good rental application that people, you know, if they pass it, then they're in. So that's the best way I can do it. It's not an exact science, but you just have to be careful out there.

Definitely. You know, these next two questions, I'm going to kind of compile them into one. I mean, this was an anonymous survey, I can kind of tell that these two questions probably came from the same person that just asked the last question, and they're trying to get a specific answer. So let's try and get as specific as we can for them on this. Okay. The two questions.

One is, how do you garnish the wages of an ex-tenant? And the second question is, how do you file a judgment on an ex-tenant to recover lost rent and expenses incurred by them? Okay. That is a good question, and I can answer parts of it. just because, you know, as you know, I'm still learning real estate. I've been in the business for three or four years. Right now, we only do low-income tenants, and thus far, we've been lucky where we have gone from certain individuals.

So I haven't had too much experience. I have evicted a few of them, and we've evicted a few people from the foreclosures we purchased. But basically the way you're going to be able to get that type of information is when you're doing an eviction with your lawyer, your lawyer is going to submit to the judge the amount of back rent and payments that the tenant owes to you. And then the judge will determine how much rent, you know, damages, security deposits owed, and actually give you a court order judgment at the conclusion of the eviction trial.

And then you have to take that judgment. and this is where I, since I haven't had experience doing it, but from what I know, and don't quote me on this, because you want to consult with a legal professional who actually knows what they're doing, but I believe you have to secure that on that person's credit report, and I think you either do that through a credit company or, you know, as many investors do,

they like to get bank accounts for bank account numbers, and driver's license numbers from their tenants just before they sign the lease, so they have actual personal information to then go and record these judgments and garnishment and try and get their money back. So I've heard stories from investors where they're able to get it back from them pretty quickly and others where people are buying a home seven years later and they have to pay off that judgment that you secured on them for them to fund the mortgage. So sometimes you get paid quickly.

Sometimes you'll get, you know, $2,500 in rents that you owe $7,000. and seven years later, and it feels good. So I don't know the exact details, but those are the fuzzy steps that, you know, I've heard in passing and talking with certain lawyers from time to time. Mm-hmm. You know, a lot of people when they talk about when they hear about a buy-and-hold strategy

and they hear about becoming a landlord, you know, everyone's always attracted to the, or everyone always remembers the horror stories of what they've heard out there by other buy-and-hold or other landlord, other buy and hold investors or other landlords. How often do you actually have situations where you have to involve your attorney with a tenant, with a tenant? With buy and holding, if you do your tenant screening properly and you do it professionally, you're going to probably have problems with about 1% of your tenants.

I mean, right now I deal with low-income housing in rough areas of Southern California. and, you know, those are probably about as tough a tenants to manage as you're going to see, and we've had some issues, and we settle them out, and, you know, we're really pretty good right now in our management. So you're going to see about 1% of your tenants really give you problems where you're going to have to get involved with legal help. But, you know, if you're sloppy and you don't do your applications properly and you're not firm with your tenants when they get in there, you know, they're going to take advantage of you. you and you're going to see a higher rate than that 1%. But if you stay professional, do what you're supposed to abide by the law. You're going to be just fine.

So it's just 1% really? Honestly, in my opinion, and that's what I'm saying, in the screening process, if you screen your tenants properly, you're going to have a problem with, you know, 1% of your tenants. I mean, I really don't have that many problems. Now, granted, I'm not a huge. you know, 2,000 unit landlord yet, hopefully, but, you know, I don't have that many problems with my tenants and they're all low income. So the thing is, though, is do we not plan for having

bad tenants? Of course we plan for that type of stuff. If you have a tenant that doesn't pay you for six months and you don't get run for six months and you have to evict them and you're getting crushed because you needed that money to handle your bills, well, you didn't prepare yourself enough. You know, there's investors who complain about getting unlucky or getting bad tenants. You need to be prepared for when you get a bad tenant or when something goes wrong and you need to have money for six months to handle your property because you're not getting any income during that time. So you certainly need to be prepared for it.

And if you run your business professionally, you're going to weed out much of those problems in advance. And hopefully you can keep that, you know, that 1% down. But, you know, there might be other landline. out there that have problem with 10%, but it just hasn't been my experience. Right. Well, good. Hopefully that sheds the light on the person's question because I think it was a great answer.

And it's always nice to hear from someone that is actually, like I say, out on the court playing the game, someone that's on the front lines and sharing real-world examples. The next question, and we're almost done only a couple more. Three rehab tips. What are your things?

Three best rehab tips. Three best rehab tips. Here they come. Curb appeal, kitchens, bathrooms, in almost that order. So what I mean by that, your curb appeal, you've got to have the place look great when people drive up. There's a lot of fix and flippers that I've seen

who will try and save money and re-feed the front yard grass. And then when they lift it, you know, it's halfway grown in or certain patches haven't grown in. I will spend the extra money to put in brand new sod and make that place look sparkling. If it needs to paint on front of the house, I'm painting the front of the house. The worst thing you can do is give people a bad feeling in their stomach

right when they drive up to the property and they come in with a negative attitude when looking on the inside. So, number one, curb appeal, make sure your property looks great on the outside to give a good first impression. Number two, and then into number three, what sells homes, kitchens and bathrooms. The reason why I put kitchen second, you know, people, I mean, kitchen is the center point of the home. People look for that. People want updated kitchens or at least a better kitchen than what is in there.

neighborhood, that is going to sell a house. You know, you're going to appeal to a wife. You're going to appeal to families. You're going to appeal to a couple that maybe wants to start a family. And that's really what people focus on because it's the most expensive part for first-time home buyers to fix up and actually dream up and it can be a little scary for them. So if you handle that for them and make it look great, that's a huge plus. And then same thing for bathrooms. No one likes a gross, you know, icky bathroom with weird grout and a stained toilet. I mean, that just makes a house feel pretty gross. You know, you're going to want to epoxy white tub, you know, put in a new cheap toilet for, you know, $75.

You know, make sure to clean up the vanity. And those three aspects are going to sell your home because if you've got a home where, you know, with bedrooms, with older closets, people are like, hey, we can fix the closet or we can repaint this. room, you know, things of that sort. So you really want to focus on that curb appeal. You really want to focus on the kitchen second and then bathrooms third. I think you'll have a lot of success on rehabbing properties. Awesome.

So on the other side of that, where would you say is the biggest place that you can waste money in a rehab? Where should you not pay attention to? Or what have you seen people lose money in a rehab or maybe even yourself? What is a mistake that you've made in a rehab of where, you know, oops, I shouldn't have spent the money there. I'll never do that again. Sure. It's things people can't see.

You know, you want to get the most bang for your buck when you're spending money. And as great as it is to put in a listing that, hey, this place has brand new updated electrical, brand new copper piping. you know, people are going to fall in love with how it looks on the outside and how it looks on the inside. Granted, it's fantastic having new copper plumbing and updated electrical, but you're dealing with buyers' emotions and what they see and not what they're actually doing day-to-day work. Now, granted, we're not throwing out plumbing and electrical. We're making sure all that works.

We're making sure that if someone moved in that they're not going to get. a house that leaks on them and has, you know, things that are, you know, plugs that don't work and things of that sort. But, you know, I've had contractors early in my career sell me on updating the piping and sell me on updating the electrical. And, you know, it's expensive. And you really, I mean, the buyer doesn't walk in there and see it. So really, you know, hold off on spending money on the things that buyers don't see because

that's where you're going to spend a lot of money doing it and you're really not going to get that much of a bang for your buck. Got it. Got it. This is actually probably my favorite question, and I think it's a question that, you know, so many people can get valuable information

from or a valuable insight. If you lost everything today, Richard, and had to start from scratch, how would you restart? I would start over by going out and just like every new real estate entrepreneur has to do and go out and raise money. You've got to raise money because the

interesting thing in this country is people work hard. They can make good livings, but the ones who make a lot of money are the ones who raise a lot of money and take a split to the profits or charge fees for it. You know, there's someone who could work just as hard and just as smart, you know, being a salesperson where they're just a one-man team, or you can be like a guy on Wall Street who runs a hedge fund, and they raise a billion dollars, and they charge a 1% fee on a billion dollars, and then they get splits of the profits as they outperform.

And so it's really those guys who leverage other people's money and are the ones that get rich. And so what I've learned is the faster I can raise investor money, and the more money I can raise, the more money I'm going to make because if I'm charging a percentage or making a split of profits, you're going to have more transactions or you're going to have more profits with more volume and more money that you've raised. So the first thing I would do if I had to start all over again, work that investor network raise as much money as I can as quickly as possible because it's leveraging other people's money that's going to make you more money in the fastest manner possible.

Got it. Good answer. easy answer raise money it's like a no duh yeah it's a doubt but you know that that's i mean that's that's the first thing that came to mind i guess no it's a great answer might just it brings up a second question is what are to to go out and raise money particularly for people that have never done it before and i know it's a it's a fear for a lot of people to to ask for large amounts of money especially the type of money you need to to invest in real estate or that you know it help you invest in real estate. I don't necessarily think you need money, but what skill or skills would someone want to work on and develop to become a better money raiser? And what character qualities or character attributes

about themselves should they nurture and be conscious of when they are raising money? You know what? I think, you know, and that's a really tough question to answer, but you're going to when you're going out there to raise money you're definitely going to want to work on your sales and what I mean by that is is not becoming a sleazy car salesman and trying to be smooth

but you really want to try and have some sort of idea of the art of selling so when you're going in there to a presentation or trying to raise money from someone it's not you know let's jump right into it you want to establish rapport with the investor. You want to talk to them and show them that you're a person and what they're up to. You want to ask them about their business. And number two, when you've established a good rapport, you're going to want to understand the need of the investor that you're soliciting money to. And what I mean by that is, why are they investing? What type of, you know, what are they invested in now? What type of risk are they coming on? You know, is this investment? Are they looking for it to save, money for their kids college fund, or is it because they own, you know, three percent municipal

bonds that aren't paying them more, and they're looking to make, you know, more of a 15 percent return on their money? Or is it vice versa? They already have a ton of risky investments and they want lower-end investments for a lower return. So you really have to understand the need of that investor, and then you have to sell to that need of that investor. And you can take pretty much any business plan, as long as you're good at finding out what that investor's need. is and what they're looking for, then you're going to be successful because then you can sell your business plan to that need and really appeal to the investor. So do some homework on how to be an effective salesperson. And then it really, it just, it's a it also then comes down to

experience and knowing what what people want and delivering your presentation more and more. I mean, the first investor meeting you're going to go into, you're going to be sloppy, and the more meetings you set up, the repetition doing it, you're just going to get better and better at it. So I think I answered maybe part of one part. What was the other part that I'm next thing here? So that's the skill part. How about the character or the quality, character quality or character attributes that someone should be conscious of? Is there anything there that they should nurture?

Is there anything that they should add or enhance or is there anything that they should, you know, kind of not do? Like, like, as in your character as a salesperson that they should work on? Mm-hmm. Okay. You know, just character coming in, you want to be polite. You want to have manners. You want to ask for the sale when you're done, but you don't, you know, and you want to ask a few times potentially. but you don't want to, and if they've declined a few times,

you don't want to be a jerk on the way out. You know, you want to be nice to everyone. And I think good character qualities are, especially to set it up is, you know, when you're setting up the meeting, confirm the media in advance, and then also afterwards, which is going to share a lot of good character

and the qualities you display to this investor, is, you know, send a thank you note when you're done with them or follow up with them via email when you're done, and just say, hey, thank you for the opportunity. And whether they invested with you or not, you do that with someone who's investing with you or not, because they go, hey, look, once I said no to this guy and he walked out the door,

he didn't have to respond to me or make contact with me ever again. And I think that reflects really well on people's character, and that guy might remember you, and they've got a friend, you know, their next-part neighbor who's looking for someone just like you and they pass along your information to them. So I think those are good things to live by when addressing your character

and looking good in front of the investors. That's great answer, great tip. So last question, Richard. This has been an awesome interview. It's gone much longer than I thought it was going to, but you were on such a role. I didn't want to stop you because, I mean, you are a wealth of information

and real world information, which I think is so important to share. What's in Richard Haynes' future that you're really excited about? You know what? My future, I'm really excited for the short-term future and the mid-term future. I've got some long-term ideas, but those don't get you quite as excited because they're long-term. But short-term, you know, me and my business partner, we are raising a large multimillion-dollar fund to flip homes in Southern California. I'm hoping to flip anywhere between 60 to 80,

and if we get lucky and raise the money, we want to do hopefully 100 homes a year in Southern California with a team, and we'll be hiring employees, and we think it's going to be really successful. So that's what I'm really excited for in the short-term future. In the medium-term future, in three to four years, I'm excited to hopefully raise a second fund that will be even bigger and buy up a bunch of real estate to hold.

and hopefully that will be the bottom of this real estate market. And, you know, we'll look back on it in 10 years and go, hey, those were the best buys we've ever done. And that's kind of the dream of, yeah, I'm flipping homes. You know, as a smart investor once said, I think it's in Mr. Keller's book on the real estate investing millionaire. The guy said, I got rich flipping homes, but I got wealthy owning apartments. So I'm excited to be flipping a lot of homes here in the near future, but I'm even more excited for the mid-year. term of hopefully acquiring a lot of multi-unit properties, residential single-family homes, holding them for cash flow and appreciation for the long-term

and being wealthy. So that's kind of, that's the short to medium-term future that I'm really excited now. Awesome. I'm excited for you. Thank you. Yeah, it's fun to watch. It's fun to do. And, yeah, it's awesome.

Today has been absolutely amazing. Thank you so much for your time. I know you're really busy and you took out almost an hour and a half for us here. and, you know, in the future, it would it be okay if we just kind of check in with you and see how things are going and ask you to come back? Sure, Matt. I'd love to come back and thanks so much for thinking of me and taking the time to interview. It's been a really fun time.

Cool. Thanks, Richard. Take care, and we'll talk soon. All right, Matt. Talk to you later. Bye-bye. Bye. Awesome call.

I hope you enjoyed that as much as I did. Next episode, we'll resume this interview series with true players of the real estate investing game. No fans, no sideline sitters, no coaches, no Monday morning quarterbacks, just players. And players with nothing to sell, no blogs, no books, no seminars, no nothing. Just straight talk with generous,

gracious, and successful real estate investors. That's it for today. And until next time, as a very wise person once said, success doesn't come to you. You go to it. And those who say it can't be done, shouldn't interrupt those that are doing it.

To your success, I'm Matt Terrio. living the dream. Thank you for spending this time with Matt Terrio and the epic real estate investing podcast. When you have a minute, stop by iTunes to leave your comments and let us know what you think of the show. And if you haven't done so already, get started investing today by visiting free real estate investing course.com.

To access Matt's free course, how to do deals, no money required. Until next time. to your success. To your success. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.