Mark Bell's Power Project - MBPP EP. 629 - How To Get Into Buying And Renting Out Real Estate ft. David Greene

Episode Date: November 23, 2021

David Greene is a former Police Officer and co-host of the BiggerPockets Real estate podcast. The author of best selling books “Long Distance Real Estate Investing”, “Buy, Rehab, Rent, Refinance..., Repeat”, and “Sold: Every Real Estate Agents Guide to Building a Profitable Business”, David is a nationally recognized authority on real estate, and has been featured on CNN, Forbes, and HGTV as well as over 25 different real estate podcasts. A licensed real estate broker and lender, David runs “The David Greene Team”, a top producing real estate company in Keller Williams where he has won multiple awards for production. An active real estate investor, David owns properties across the country. Find David's books on amazing below! Long-Distance Real Estate Investing: https://amzn.to/3cEQGgP Buy, Rehab, Rent, Refinance, Repeat: https://amzn.to/3cBWGqA SOLD: Every Real Estate Agent’s Guide to Building a Profitable Business: https://amzn.to/30XZ5tk Special perks for our listeners below! ➢Vertical Diet Meals: https://verticaldiet.com/ Use code POWERPROJECT for free shipping and two free meals + a Kooler Sport when you order 16 meals or more! ➢Vuori Performance Apparel: Visit https://vuoriclothing.com/powerproject to automatically save 20% off your first order! ➢Magic Spoon Cereal: Visit https://www.magicspoon.com/powerproject to automatically save $5 off a variety pack! ➢8 Sleep: Visit https://www.eightsleep.com/powerproject to automatically save $150 off the Pod Pro! ➢Marek Health: https://marekhealth.com Use code POWERPROJECT15 for 15% off ALL LABS! Also check out the Power Project Panel: https://marekhealth.com/powerproject Use code POWERPROJECT for $101 off! ➢LMNT Electrolytes: http://drinklmnt.com/powerproject ➢Piedmontese Beef: https://www.piedmontese.com/ Use Code "POWERPROJECT" at checkout for 25% off your order plus FREE 2-Day Shipping on orders of $150 Subscribe to the Podcast on on Platforms! ➢ https://lnk.to/PowerProjectPodcast Subscribe to the Power Project Newsletter! ➢ https://bit.ly/2JvmXMb Follow Mark Bell's Power Project Podcast ➢ Insta: https://www.instagram.com/markbellspowerproject ➢ https://www.facebook.com/markbellspowerproject ➢ Twitter: https://twitter.com/mbpowerproject ➢ LinkedIn:https://www.linkedin.com/in/powerproject/ ➢ YouTube: https://www.youtube.com/markbellspowerproject ➢TikTok: http://bit.ly/pptiktok FOLLOW Mark Bell ➢ Instagram: https://www.instagram.com/marksmellybell ➢ Facebook: https://www.facebook.com/MarkBellSuperTraining ➢ Twitter: https://twitter.com/marksmellybell ➢ Snapchat: marksmellybell ➢Mark Bell's Daily Workouts, Nutrition and More: https://www.markbell.com/ Follow Nsima Inyang ➢ https://www.breakthebar.com/learn-more ➢YouTube: https://www.youtube.com/c/NsimaInyang ➢Instagram: https://www.instagram.com/nsimainyang/?hl=en ➢TikTok: https://www.tiktok.com/@nsimayinyang?lang=en Follow Andrew Zaragoza on all platforms ➢ https://direct.me/iamandrewz #PowerProject #Podcast #MarkBell

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Starting point is 00:00:00 Power Project Family, today we have an amazing episode on real estate investing with David Green. He's a TEDx speaker featured on CNN, Forbes, HGTV, and he's the co-host of the top real estate podcast, Bigger Pockets. He's the author of many bestselling books and is passionate about helping normal individuals like ourselves build wealth through real estate. He runs a top producing real estate company in Keller Williams that has sold over $200 million in real estate company in Keller Williams that has sold over $200 million in real estate in 2021.
Starting point is 00:00:27 An active real estate investor, David owns single family properties across the country and shares in apartment complexes. After this episode, you're going to have the necessary tools to get yourself started in real estate. So I hope you guys enjoy this episode with David Green. I also like mint chocolate. Here, try half to just pour some of that in there. And I'll pour the rest of mine. And then I'm supposed to lick this off your body or something? It was supposed to be me licking it off your nipples. Primarily.
Starting point is 00:00:53 Oh, you have a specific spot you're going to put it on. It's not good if it's just... It depends who drinks the mind bullet first. I wonder how long he's been thinking about my nipples to say that. Man, they're very perky, yours. Thank you. You're welcome. Do they still have a YouTube account? They did have it. Wasn't it an Instagram?
Starting point is 00:01:12 I thought it was an Instagram. Really? Oh, my bad. I thought it was YouTube. I thought it was somebody that would comment, my mustache has an account. Is he still around? Has the podcast started? Yeah. Oh, we're going. We're going. Opening with nipples.
Starting point is 00:01:29 I mean, it's one of the better things that we've opened with, to be perfectly honest. It could be much worse. The show usually starts downhill and just kind of continues onward. We like to start on a low point so that it goes up and people are like, oh, it's getting better. The key to successful life is lowered expectations. Exactly. You price anchor, right? Set it very low.
Starting point is 00:01:50 What got you into jiu-jitsu and how did you take the first step to get in there? Because there's a lot of people that listen to the show, they're thinking about something to do, whether it's like go for a walk or run or start lifting. How did you start? So I was a defensive tactics instructor when I was a police officer. I already kind of had a background in combat and then I haven't been working in law enforcement for four or five years.
Starting point is 00:02:14 So I kind of missed that aspect. And then we interviewed Jocko Willink on our podcast and my cohost, never heard of him. Yeah. My cohost, Brandon Turner, uh, kind of got roped into committing to do jujitsu and you don't commit to something with Jocko and then not do it. So he basically like Jocko has that, that authority that just his mere presence can get you to step your game up just being around him. So Brandon signed up for jujitsu and then I was watching him and I get better and I thought I can't let that happen without me jumping into so i reached out to a buddy of mine justin uh hoagland and he went to a cross the gracie jujitsu in brentwood and i basically started going and like watching them and then i started taking privates with him and then i signed up for the class was it uh intimidating interviewing jocko willing i don't know intimidating my it's the i mean it seems like a really nice guy, but he also seems fucking intimidating. Yeah. How would I just, it's a, it's different than any human being I've ever met. It's that feeling when you're at the zoo and you're looking at a lion. All right. I'm not trying to shine someone else's wheels this much, but you're very aware that is a lion and I am not. Right. And there's something that just draws you to it. Like the nature essence the aura of that thing when you meet jaco he is so comfortable in his own skin that you immediately recognize areas that you're not
Starting point is 00:03:29 comfortable in yours so there's this normal thing that an average human has where you want to be liked and you want to like someone else and so when you first meet someone we're dude so there's this little like i'm not a threat thing we have to get through right because you've got the whole who's the alpha gonna be that has to get figured out. And then there's the, well, I'll compliment you and then you compliment me and all the dust kind of settles and we figure out what kind of, right? You guys know what I'm talking about. Jocko just does not play. It all happens subconsciously, but that's kind of how every interaction with the guy is, right? It's not like that with Jocko. He just doesn't care if you like him or if you don't like him. He's so secure in what he believes in his values that you will find yourself wanting him to laugh at something you said or wanting to
Starting point is 00:04:10 get some kind of feedback and he just doesn't give it. But it's not a jerk thing. It's one of those like where being around him kind of made me recognize areas where I was insecure, areas where I was maybe cheating just instead of just being who I am or I'm trying to get you to like me with some kind of a gimmick. And I love that actually made me leave thinking I wish I could have that impact on other people right like if you improve your own game you take away some of the weaknesses you have it causes everyone around you to want to lift up theirs and that would be like that intimidating in a sense because it forces you to see the weaknesses in yourself how do you think someone gets there to that point I think Jocko has just done a hard thing after hard thing without compromising and doing the right thing for so long that he's learned.
Starting point is 00:04:49 Like, I think a lot of us in life, we sort of just cheat our way through certain things. You can earn people's respect by working hard, getting good, putting in the work, or you can develop a charismatic personality that kind of causes a little bit of, you know, gives you an edge in certain cases. Fake it, cheat it a bit. Yeah. Yeah. But so we're all doing that so often that you don't always recognize that's what's going on. kind of causes a little bit of, you know, gives you an edge in certain cases. Fake it, cheat it a bit, yeah. Yeah, but we're all doing that so often that you don't always recognize that's what's going on, but that's what your motive is. And so I think just having to be a Navy SEAL, being in combat, having to lead great men like he had to do, that stuff doesn't work around people like that.
Starting point is 00:05:18 So he's just been this refining process that's created the guy he is now. Well, with doing jiu-jitsu for a while now, how's it been for you? How have you been? Because you said you did defensive tactics as an officer. Has that helped you with jujitsu or is it different? I think it's helped in the sense that when we learn a technique, I can pick it up faster than the average person would. Understanding body mechanics, what I'm trying to torque,
Starting point is 00:05:42 where I'm trying to limit them. But as you know, as someone who does it, when you're actually rolling the knowledge element, like mental intelligence doesn't translate into kinetic knowledge. Like when you're actually having to do the movement, right? So in one essence, I'll feel like, yeah, I'm picking this up quicker than other people. But then when we roll complete level playing field, there's people that couldn't explain how they did it, but they just naturally will do the right things. So I think there's that dichotomy of it that I really love where you're going to love it and hate it at the same time. You're going to feel really good when you're drilling, then you're going to get your butt kick when you roll, then you're going to
Starting point is 00:06:15 have a great role. And there's this like bipolar experience of going to class over and over and over. How does it feel being, because you are a big, strong guy, but cause I got my ass beat by guys that were a hundred pounds less than me. And that was different because I wouldn't have expected that. How does it feel having that happen to you? I expected that when I went there. So I was lucky in the sense that I did not have an ego, right? I was looking at it like, you've been doing this for two years.
Starting point is 00:06:38 I've been doing this for two months. If you couldn't tap me in five minutes, even if you're 100 pounds less than me, I still think I win. tap me in five minutes even if you're 100 pounds less than me i still think i win uh but what i would say is i've never been as jealous of a smaller human being as when i was literally looking at like 150 pound guys like you're so lucky i wish i was five foot five like you and i could just do this for 25 i've never had those thoughts until you get to jujitsu and you're like his body is is a little more coordinated it can pick this stuff up they could just go forever um a lot of the the submissions are torque-based or position-based, right?
Starting point is 00:07:08 So being strong doesn't help. There are areas where it will help, but I did think that was funny that I caught myself jealous of smaller men, which I would have never had that experience in my life before. Yeah, and then you start getting jealous of how someone moves.
Starting point is 00:07:20 You're like, oh, shit. And me being a longtime powerlifter, it was never really about how someone moved. It was how much weight they moved like that was kind of more how we were judged but more recently i'm like shit man that guy is in his 50s he moves great or that guy is able to move out of that hold really well or that guy is able to you know do his squats or his lunges with really good form and technique so as you get older you start to kind of keep an eye on some other things and you start to admire some different things. You want to shift and start to go in some different directions.
Starting point is 00:07:50 That is a great point. I think like seeing some of the somersaulting stuff that the littler guys can do. You know, my first three months, every private lesson I took, we didn't even roll. It was literally just the movements, practicing like standing up and getting down and moving around on the ground and rolling and somersaulting and those things that kind of the building blocks that you need to get before you can ramp up so i think that's why this is fun right now because i don't have to do anything if i just show up i get better when you're a white belt it's not hard to get better i think when you get to the upper levels you're a brown belt you're a purple belt you kind
Starting point is 00:08:22 of got to seek out an experience where someone can teach you something but right now i can't help but get better every time just showing up is the best thing i can do i think for a lot of people that hear about it like you said they want to get into it your best bet if you know you're not the type who's just going to show up and sign up go sit there and watch the class and if you just hate it if it's a culture you don't like like some of them it's like a lion's den they They're just going to throw you in there, right? The one I go to isn't that way. You don't even roll until you get your first stripe. You're just going to drill.
Starting point is 00:08:49 They're going to build up your body. They're going to get you used to the fundamentals type of thing. But maybe you want the lion's den experience. I would say just show up at the gym and watch. And then you'll get kind of comfortable with the culture and the feel. And then you can figure out where you're going to sign up. You down to try some Mind Bullet? You know, it comes with this tab. A little sealed tab.
Starting point is 00:09:07 Yeah, exactly. So that makes me think this is pretty serious. We've got a little cheers going here. Well, that also means that none of us opened it and spiked it with anything. Good point. That's true. You're safe. Down the old hatch.
Starting point is 00:09:20 I'd say start with half. Oh, you drank the whole thing. Andrew's watching. He's like, I'm the only one who's going to remember anything. I mean, I took the capsules, but... Was that on purpose? Did you tell me to take half after you watched me take the shot of the bottle? It kind of looked like it.
Starting point is 00:09:38 It's like, oh, fuck. Very nicely done. I'm going to carry him out of here. I see his esophagus moving. Now's the time to tell him. That's a lot of deal. You almost broke the wall. Andrew, did you hit the record button?
Starting point is 00:09:49 Yes, I did. Okay. You know, but after our conversation, I checked at least like a hundred times already because I'm like, I better not fuck this one up. Yeah. You were saying you had Jim Quick on your show? Yeah. He's the memory guy, right?
Starting point is 00:10:01 He teaches people how to remember stuff better. And my co-host, Brandon turner forgot to hit record and we had been talking to jim and brandon's like yeah one time we forgot to record so we came up with this system so we never do it again and he was almost using it as a way to bond with jim like i was saying earlier we do this thing where we want people to like us so he's kind of shining jim's wheels like we took your stuff and we incorporated into and then we forgot to record so then we had to tell him 45 minutes into the show we got to start over because we didn't hit the record button and he was willing to start over and just do everything again he just died laughing or what no he did not think it was very funny he was one of those like he was
Starting point is 00:10:37 trying to be classy and hold in what he was really thinking but you could kind of see it like classy guy that would be that would be frustrating especially if you felt like you said some uh gold nuggets in there you gotta kind of start over you'd be like fuck yeah you never get it right the second time you tell a great story someone doesn't hear it you never tell that story again the same way they get they get a cliff notes version it's all yeah it's edited and uh all the cuss words are taken out of it all the fun stuff all the juicy stuff is taken out of it at that point how How'd you transition from being a police officer for how many years? 10.
Starting point is 00:11:10 Shit. How'd you transition from being a police officer for 10 years to doing more real estate? It was not a good transition or an easy one. Very difficult. Like what I tell people, it was like going from like powerlifting to yoga. Just the skillset did not translate well when I got into real estate sales and then a mortgage company that I have now. Just sales in general is a completely different skillset than when you're a police officer. So from that perspective, it was tough, but what was good is that it really forced my personality to become more well-rounded. So when you're in law enforcement, it's a very logical decision making process. Like, OK, did you do something that was wrong?
Starting point is 00:11:48 Yes or no? Yes. All right. Do I have the authority to stop you? Yes or no? Is it worth stopping you? Yes or no? That's how everything goes.
Starting point is 00:11:54 And then you get to the end where it's like, hey, I'm going to write you a ticket or I need to arrest you or whatever. Are you going to let me do it or am I going to have to force this upon you? It's still just very binary. Then you get into sales and that does not work on other human beings who have fears and emotions and hesitancy and excitement. Like most of what you do when you're in real estate sales is you take a person who already wants something and want to buy a house. They want to sell their house and you're trying to smooth out their emotional spikes all the time. So I started off and I just approach it the same
Starting point is 00:12:23 way I did law enforcement. Like your house is worth this. Do you want to sell it? Yes or no. That was kind of, and then I just realized I can't be good at this. I had to develop completely new skills. So from that perspective, it's been great. I learned to value relationships a lot more than I did before. I wasn't like a non-relationship guy. So when I was a police officer, if you were not a very good police officer, I probably wasn't the nicest, kindest person towards you. Like if you're not good at your job, I just don't really respect you. I'm not going to yell at you, but I just ignore you. And it would probably been helpful for you to assist them, assist those people or figure out a way to be more open to those people.
Starting point is 00:12:57 So you had a better team. The people that were open to being assisted, I would have. If you were like, I'm not good at this and I'm just okay not being good at it. I just sort of like dismissed you just wasn't acknowledging your existence. But then those people started buying houses with other people and they would say, well, I never thought you liked me, so I didn't want to announce it. That's a good point. I kind of didn't like you and I wouldn't have done something different in your position. So I started to recognize that my value system of like, are you good at what you do? And that determines your value as a human being had leaked into my business and was now causing problems.
Starting point is 00:13:28 So it forced me to recognize that, hey, I may not respect you in the profession you are, but you may be a great father. You may be a great person in other areas. Maybe the guy sucks as a cop, but it doesn't mean he sucks as a dad. Doesn't mean he sucks as being a buddy or friend or whatever. And if I learned to value those aspects of a person and I value the relationship better, I would treat them with more respect. Boom, business got better. So I started doing that with everything, everywhere I went.
Starting point is 00:13:52 If you didn't fit in the box of things I understood and valued, I would have just not paid attention to you. But now I realize I need this relationship for you to send me referrals, for you to support my business. So it was my responsibility to figure out forever when I came across, how do I bring value to your life? How do I make you a better version of you? How do I figure out what your goals are and help you with them? Even if they're not things that I would necessarily want for myself. Quick question. Before we get deeper, because some people are probably listening
Starting point is 00:14:17 like, oh, he's just a real estate agent. Can you kind of like, I'm curious, cause I want to know like how long you were a cop, how old you were when you made the transition, but can you talk to people about just like some of the stuff you've done in real estate? Because you're really fucking good at what you do. Thank you for that. So I was a cop and I basically just started working overtime. And in 2009, I had saved a lot of money when I was in college. I was a waiter. So I graduated college with about a hundred grand in the bank. Wow. I worked every day that I could. It was So I graduated college with about 100 grand in the bank. Wow. I worked every day that I could. It was pretty much either just like exercise, go to school, or go to work.
Starting point is 00:14:52 And I was good at saving. So I bought a house in 2009. Then I bought another one in 2010. Apparently, I bought a house a year until 2013. So I had about five or six houses, and then the market took off. So I had to start buying in other states because California was too expensive. You couldn't do it here. Started buying in Arizona, put together this system of how I buy rental properties out of state. I didn't know that was a risky thing, a dangerous thing. I just
Starting point is 00:15:11 thought, well, if I want to do this, this is what I got to do. Wrote a book called Long Distance Real Estate Investing that was published by a company called Bigger Pockets, which is kind of the premier real estate investing website. It's all free information, teaches people how to do this. They're like an anti-guru site. You don't have to pay $100,000 to learn how to flip a house. So that book went really well. Wrote a second book called Buy, Rehab, Rent, Refinance, Repeat, which is basically a real estate investing strategy where you buy a property, you add value to it through fixing it up. It's now worth more. You then refinance it and get more of your capital out of it so you can go invest in the next house, as opposed to just buying a bunch of houses, dumping money into fixing them up, and you don't
Starting point is 00:15:48 have any money in the bank. So it's harder to survive downturns. That book went well too. Eventually got offered a position on the podcast with Brandon Turner, and we started co-hosting the podcast. Now, Brandon's my best friend, so we had a really good chemistry. The podcast grew really quickly. I learned talking, like a skill that I didn't really have to have before. Like I'm sure you guys, there's a skill to telling a good story, keeping people engaged. And then I started buying a lot of rental property. So I got to where I was buying like two to three a month. And those were all out of state. Eventually got my real estate license, started selling houses as a realtor. So you didn't have your real estate, you didn't need a real estate license to do all of this? Not at all. Because I was buying them just for myself to keep it. I got tired of referring people
Starting point is 00:16:29 to real estate agents. And then my buddies would come back to me and say, this guy doesn't know this or they're not doing this. And now I got to fix the problem. So I'm just going to get my license and do it myself. Built a real estate team, have about 20, 25 agents now. And we have like a system worked out where I'm not actually the agent anymore. I'm the CEO of that company, started a mortgage company this year. And then I still flip houses. Um, I invest in apartment buildings with other people. I'm kind of now moving into the space where I help raise money and I give it to people that know how to invest it at a really high level. And I helped make money for the investors. Wow. Um, you know, being a police officer previously and, um, just having to deal with a lot of different people, that must be helpful in your transition to what you're doing now or even what you were doing maybe just a couple of years ago in building this team and being able to kind of understand what you mentioned earlier, like the fact that someone's not
Starting point is 00:17:25 a great police officer doesn't mean they're different people want to be a realtor, probably for some different reasons. Maybe like I've noticed this in sports, especially like on the high school level, like the lower level of sports. There are some kids that just wanted to participate and just wanted to be part of a team, you know, they just but they weren't really a football player and uh there's some differences right so there might be some people that just are looking for a job that uh can be flexible with the hours um they get to interact with people and yeah they kind of like crunching some numbers so maybe that particular but they're
Starting point is 00:18:01 not like crazy passionate about it so that must have been helpful in your transition in some ways. The sports background was by far the best thing that could have happened for building that team. So I was a big basketball player when I was young. It was my passion. I loved basketball. I thought I was going to be a coach. That's where I thought my career was going to go. And I would say that simultaneously, the hardest and most rewarding part of building that team is the approach that a coach has to take where you do need everybody on that team to be committed to winning. If you want a good team, we can't really have people on at least our real estate team that are, Hey, I just kind of want to work part-time. They can work in the brokerage, but they're not actually going to be on the David green team,
Starting point is 00:18:35 but you do find that you can't have a team full of three point shooters. You can't have a whole bunch of centers that can all play really good defense and block shots, but nobody can handle the ball. There's a lot of that that goes into building the team of this agent is good with these type of clients, but they are terrible with staying organized. So I will have to pair them with an admin that is great at being organized, but does not like sales and does not want to put themselves out there to talk to people. So that tinkering with the chemistry of the different team members to try to get it right is most of what my job is on that team. And what it looks like is you just, you feel like you're sucking, you're sucking, you're sucking, you get the right combination. You pair John
Starting point is 00:19:13 Stockton and Karl Malone and then boom, they go to 15 houses in escrow over a three month period. It's insane how that goes. So I think anyone who's starting a business, that's sort of an underrated part that they have to understand is what is the goal? We're trying to do this. And we have these people that want to work on the team. But what are their strengths? What are their weaknesses? And how much are they willing to actually work on those?
Starting point is 00:19:32 Like we were talking about earlier, not every human being is willing to work on weaknesses or improve, right? Some people just want to hit cruise control and they want to be comfortable. Others are empire builder that want to go and take over the world and they need someone to guide them in that direction. So I think that's why a lot of businesses don't work out. Imagine if some of your realtors showed up in short shorts like John Stockton used to rock back in the day. He wore them all the way through his career. Yeah. Even when everyone else was wearing big shorts.
Starting point is 00:19:58 Yeah. When everyone switched. He just kept it kept it real. Yeah. Did you have an intention of going into real estate when you were a cop and like after you got out of college was like the whole thing to be a cop for a while and then can go into real estate or totally bass-ackwards i had no intention of becoming and that's funny because we give people advice on our podcast is you need a plan you need a vision
Starting point is 00:20:18 you decide where you want to go it's just not the way that it worked out i i didn't even tend to buy that first house i had a friend who was going to Bible college and he had this house in escrow and he was going to lose his earnest money. And he was telling me this story and I was like, well, maybe I could buy it and you could keep your earnest money. And I was kind of like interested and I had been following home prices. So I went and looked at the house and it was listed. He had an under contract for 215,000 that had sold for 565,000 a couple of years ago. So like it was the perfect timing after the crash. I was able to get under contract at 195. And the next thing I know, I'm a real estate investor
Starting point is 00:20:49 and had to figure out like, how do you rent out a house? How do you find a tenant? What's the form I need? It was like you said, like you just get in it and you start to figure it out. But then what happened is my identity shifted. I started to see myself as a real estate investor. So the next year my mom said,
Starting point is 00:21:03 hey, there's a house down the street for sale. And my mind went to, Ooh, I should go look at that as opposed to cool. There's houses for sale everywhere, mom. Right. What's the point? So then when I bought that house, now this is like a thing, like I buy houses and I own them. So my grandmother died the next year. And instead of just having the family sell the house, I bought the house and paid the family. And then next year I bought another like fourplex. And that's when I realized, Oh, like these apartment type homes actually generate even more cashflow. So it was one of those things where just getting in there, like just showing up at the place, you start to get exposed to it. You meet other people that do it. Your identity starts to shift.
Starting point is 00:21:35 And then boom, I had the vision that I needed to, to run it. What do you think gave you the confidence to, cause like sometimes that's hard for somebody to sound like it happened pretty early in your career to just say like yeah, now I'm doing this. I think a lot of it was the money I had saved up. So it wasn't as much of a risk for me to put $50,000 down on a house if I had $100,000. That was a big part of it. How does a college student save $100,000? Because aren't college students always broke, right?
Starting point is 00:22:01 I was curious about the habits you had to do that. Eating ramen noodles, right? Exactly. I think the average college student looks at college like an entitlement where they deserve to go to school and have an experience. What you're learning, how it's going to be useful, they don't even ask themselves that question. It's just, this is my right. Mommy and daddy are going to pay for me to go to this school. And I deserve an experience where I just have fun. It's kind of like an extended adolescence.
Starting point is 00:22:24 There's very little. I'm going to be drunk the whole time very little drunk the whole time to be sick. At what point in life can you live that way and actually be okay? But for whatever reason, college has adopted that culture. And my, I had to go to the cheapest school I could find. My parents paid as long as I went to the cheapest school and I, I made, maintained grades and I, and I worked. So I went and found restaurants where I can make the most money I could,
Starting point is 00:22:44 the nicest ones. And I drove an hour to go work at the fine dining type restaurants. And I had to learn about wine. I had to learn about cuts of steak, like things that most people that came from my, like a blue collar background, we didn't get exposed to that, but you could make really good money at that time with the tips if you did a good job. And then I also became very efficient at that job. Like I approached it like basketball, no wasted steps, uh, do more than one thing at a time. Like I liked the feeling of when you're playing in a basketball game, it's a very fast pace. You're looking at what the landscape is and it changes really quickly. It's this dynamic situation. The restaurant world was very much like that. This table needs this, this table needs that. I want to make sure that I look
Starting point is 00:23:21 like I'm calm and I'm not busy. So they see me with another table, but I, behind the scenes, I'm getting the bus boys. I'm like, I need you to get out there and go do this and this and this and trying to organize all that chaos. But I mean, I think my first couple of years, my goal was to save $500 a week. And that was, this is, you know, to 2001 through 2004. So that was a little bit more money than what that is now. And then my last couple of years, I was an even nicer place. And so I was trying to save about $800 a week. But if you just save $500 a week at the end of the year, that's $26,000 four years of high school, that's a hundred grand. So like with that, like, what did you not waste your money on that you see? Cause like a lot of people buy food out a lot. Like what were you, what were you doing with your money as far as a budgeting aspect? That's a great question. I had a gym membership, a cell phone, car insurance and gas,
Starting point is 00:24:10 and anything above that, I looked at a luxury. So I was lucky that I could live at home and I could eat mom's leftovers. I recognize that everybody has that, that opportunity, but I did. So I took advantage of it. Uh, I wasn't spending money. Like when my buddies were going to Cancun on these big vacations, right? I sort of had the mentality that, okay, you're going to spend $300 on a plane ticket, $500 on your hotel, 200 bucks on food for everybody else. That's a thousand bucks. But I'm like, I'm going to be gone from work for four days. I can make 200 bucks every day. That's actually an extra 800 on top of the thousand. That's an $1,800 trip is the way that I was looking at it. So I wasn't as inclined to spend money on dumb things because I knew I wanted to save. I think
Starting point is 00:24:50 that's a big piece of it is like, if you know what your goal is, it's way easier. Like we were saying, now that I'm doing jujitsu, I eat healthier. Just it's easier to eat healthier. I don't want to have a bloated stomach when I get there. Right. Before that food was a struggle because it was just, I should eat better. I know I should do it, but I just don't want to. It should taste so good. Yep. I got nothing else going on in life that I'm really excited about. So the next meal you're going to eat is what you're looking forward to. Right. You replace that with something else. The, the role that food plays in your life is sort of diminished. And then it starts to become a function of the other things that I want to do, which I think is something you two probably
Starting point is 00:25:21 have like down pat. You had, um, you said that having a lot of money gave you the confidence initially. And so I'm pretty sure that plays a lot of the, uh, into what I'm about to ask. But for someone like me, um, I've always been interested in maybe potentially investing in real estate, but one, I don't really know where to start exactly. Like all I know is like, I've bought a house, I've sold a house and I've bought another house. That's all I know how to do. And that's because I call my friend, my real estate agent, like let's do this. And they're like, cool, we got it. We'll take it from here.
Starting point is 00:25:51 But for someone like me in my position, I do have a mortgage. I can't pay it all off right now. You know, like it's definitely a high price bill for what I make. So I can't, I don't have a lot of extra income. How can someone like me who has a mortgage, has a family, has bills, how can I get into real estate? The first thing I would say to your average homeowner who wants to buy more real estate is you can't look at it like it's a stock. This is a big mistake everybody makes is that, you know, a deeper theory that I would have is that most of us approach life based on whatever we did before. So if you ever become an entrepreneur, you have a 1099 job, you're
Starting point is 00:26:33 going to think like a W2 employee, which is the worst thing ever because W2 employees are sort of subconsciously trained to figure out how do I come to work, do the least amount of work possible to not get fired. Andrew is describing you pretty well. He's got your number, bro. Nobody in the W2 world has to go generate income, has to find business. They don't have to put themselves out there like you do when you're an entrepreneur.
Starting point is 00:26:58 And then when they become an entrepreneur, they've got this house cat mentality. Like someone brings me my tuna, I just got to open the can and eat the tuna. I'm not hunting, right? You start to open a business. Now there's a fear, like I'm not going to eat today that turns you into that jungle cat that wants to go hunt. The same is true. Most people, when they think about investing, they think about the stock market, which more or less is based on buy low and sell high. That is the only way you make money in stocks. The longer you hold it, the better your chances of selling high are, but that's still what you're doing. Real estate has an aspect of that
Starting point is 00:27:30 where you can time the market, where you can buy low and sell high, but that's not the fundamentals of how we're doing it. What you actually want to look for is a property that will generate more income than it costs to own it. That idea of cashflow. So the house you live in, if you're the average person, is probably like a track home in a nice community that your wife really likes, has good schools, and you maximize how much you spend every month in order to make that dream happen for them. The properties that I would look for would be an older home with a basement and an ADU where I can live in the basement. I can rent out the main house and the ADU, or I can turn the main house into two separate units because of the floor plans, right? I can rent out the ADU in each unit,
Starting point is 00:28:08 and then I'm living in the basement. ADU, what's that one? It's accessory dwelling. It'd be like an in-law unit or when they have a little separate studio in the backyard type of thing. Different areas that can be rented, or maybe a triplex, or you live in one unit, you rent out the other two. So now even though your mortgage may be four grand, you're bringing in $3,600 in rent. So you're living for $400 and you're getting tax benefits, right? So you're giving up some of the comfort in order to have this asset that functions very efficiently. And then every year the rents are going to go up. So you're bringing in 3,600 the first year, then you're bringing in 3,800. The next thing you know, you're at four grand, you're living for free.
Starting point is 00:28:47 And then you buy another house like that next year, right? That would be the approach that you would want to take if you're like, I want to get into real estate investing, but I don't want to take a big risk. You got to stop thinking about just how do I buy it for less than what I think is worth? Or how do I buy it and then sell it later? If you have that cashflow component, you've now put power in your hands. It's like when you're playing poker and you're not one of the blinds and you choose if you want to play that hand or not.
Starting point is 00:29:11 That's how real estate investing works for me. If I'm going to sell, it's because the market looks really good and I have better opportunities, but I don't have to because it's bringing in enough money that it can pay for itself where I can make additional income.
Starting point is 00:29:21 That would be like, if you could just get that part down and then slowly look for the type of properties that work that way, all the rest of it will fall into place. And then is it difficult to get into one of these houses? The reason why I ask, because the person that bought our previous house, something got caught up in escrow because somebody got confused where they were under the impression that he was going to rent that house out, but he actually was going to live there and rent out his old house. So like it almost like ruined the entire deal with like my current house and everything. So is it more difficult to purchase a home with the intention to rent? Because you have to let them know up front,
Starting point is 00:30:00 right? That you're not going to be living there. What you're describing, I can tell you what happened was the person buying the house was the lender wasn't informed of what the purpose was. And that came up during escrow. So one of the things that people will do is if you're buying a house to rent out, they want a much bigger down payment. That's considered an investment property, which immediately to a lender is more risky. So they want you to put down 20, 25%. Well, if you're buying a house to live in, you can get by with 3.5% down, 5% down for really good loans. They're not like a scary adjustable rate mortgage. So the person probably said, I'm buying this to live in.
Starting point is 00:30:34 And then later on said, well, I'm going to rent it out. Or the lender thought that they were just going to rent it out. And that's what stopped everything. So, no, it's not hard if you're just honest up front with what your intentions would be. It just costs more up front. They're going to have to put a lot more down if they wanted to rent it out.
Starting point is 00:30:50 Got it. So quick question about that. So if you were to say, I'm going to buy it to live in, you live in it for a year and then you begin renting it out, is that problematic? Nope.
Starting point is 00:30:59 Yeah. Do you have to refinance it to let them know? This is, I know. Logically, you would think that's the way it should work, but that's just not how lending regulations go. I call what you just described the sneaky rental tactic. I'm a huge proponent.
Starting point is 00:31:15 So you buy it. I thought he was going to say, you can't do that. Okay, cool. You buy it with 3% down, 3.5% down, right? And then you live in it for a year, nine months, whatever it would be. You decide you want to move on with your life. you're just allowed to do whatever you want with it when you bought it your intention was a primary residence and that's the only question that they ask is that the time frame nine months well i don't know that there is a time okay right i want to be careful with how i say it correctly my understanding is that in most loans
Starting point is 00:31:40 did you have the intention of occupying it as a primary residence? They can't legally force you to. Your job changes across the country. Some sick family member happens. You just then have to rent it out. I'm not going to say that happens all the time, but that happens all the time. There are some weird things too, right? With California state law of like, I think it's like anything over 14 days. If you stay at like a vacation home,
Starting point is 00:32:05 anything more than like 14 days and it's got to be considered something different or. So when it comes to talking about them all. No, that's good though. I've got to be bringing it up. What you're talking about is like short-term rental legislation. So let's say you buy a house and you want to go then put it on Airbnb. In most cases, I mean, if it's somewhere no one wants to rent, this isn't going to work, but say it's a place where there's a demand for it. You're going to make more renting it out as a short-term rental than you would be just putting a tenant in there and collecting money every single month. But there's going to be more work to it. What happens is this is working so well for so many people that like let's take Scottsdale, Arizona.
Starting point is 00:32:37 This is blowing up over there. That house would normally sell for $700,000, but some investor is happy to pay $850,000 for it because it's going to generate so much stinking money. Might generate $2 million for the year or something like that. Yeah, it doesn't matter what the comparables show. To them, it's worth more. So they pay $850,000. So now everybody else who wanted to buy that property can't afford it anymore. So in certain areas, you get like Hawaii, this is happening over there.
Starting point is 00:33:00 You have the local Hawaiians that are kind of pissed because these people are coming in and just throwing money at properties. Don't they not allow Airbnb there? That's why. So they go to their local government and say, we don't want this Airbnb because it's jacking up home prices. And so then they say, well, you can't rent it out for less than 30 days at a time or less than 14 days. Otherwise, it's a short-term rental. And so with you, I mean, you're busy. I'm pretty sure you are pretty handy.
Starting point is 00:33:24 But I don't think when tenants are calling, saying that their toilet's backing up, that you're over there with the plunger. So when I did rent, we did have property managers because the owner of the house, I think, was out of the state as well. Is that something that you would recommend for everybody just starting out? Or is that more when you've kind of established enough homes that it can kind of pay for itself type of thing? The best way that we describe that is look at if you were to go change the locks on that property, how much money did you save and how many hours did you spend and come up with an hourly rate. And if that hourly rate is less than what you can make doing something else, hire it out. The caveat I'll throw into that is that's only looking at it
Starting point is 00:34:05 from a financial perspective. I think there's also like an energy component that I work into when I do something or when I don't. So if there's a task that I just hate doing, it just drains me of energy. The rest of my day is going to suck because I had to do that thing. I'll hire it out even if it's more expensive. And there's certain things that aren't really worth my time, but I just get a kick out of doing it. I really like it. I factor that in there too. Because if you go do something that gets you juiced up and like, you know, sometimes I'll step in on our listings and I'll negotiate an extra 25 grand for the client or something, right? I'm going to make a couple hundred say, I don't want to pay 6% commission. I want to pay four. I can fight that battle because I know I just saved my last guy 25 grand and you're fighting with me over $3,000 or something. So that's the other thing I would work into it. But in general, I don't want to be really, really good at changing light bulbs and changing locks. So I let the person who's already good at that, let him feed his family off the stuff that
Starting point is 00:35:02 he does. And then I focus on the parts of the business that I think are, are better for me to be good at. I think maybe years ago it was, uh, very common, you know, like for my dad, he's, who's like in his seventies. Um, you go to school, you know, you go through, uh, like normal school system and then you go to college. Um some point, you get married, you start raising a family, and as soon as possible, you buy a house. My dad has been a real estate agent for, I don't know, 40 years or something like that. Does buying a house still have the same value as it used to? We're seeing a shift with the kind of value that we place upon college to some degree.
Starting point is 00:35:48 Obviously, we can all agree that having more knowledge is always a good thing, and having some education is great. But traditional school, we're seeing some of that kind of shift and change. And just our times are changing quite a bit. Do homes still have a tremendous value? It kind of almost sounds like to me in just listening to some of what you're saying is they almost don't seem nearly as valuable as they used to be, except if you're making money on them. Well, when we talk about value, if it's not about money, what would the rest of the value be?
Starting point is 00:36:23 Well, I just think that that's a great question. That is my question. Because everyone thinks that they have to get a house. And everyone, not everyone, many people think that they have to get a house. And they'll do so. They'll do anything other than rent. Because renting, you know, they're spending $1,900 a month. And that could go towards me owning something.
Starting point is 00:36:45 But it also takes people like 30, 40, 50 years to even own something. And then they own it, but then they don't really ever get an opportunity to really do much with it, except for in some cases where maybe you had kind of a large family and you got to shrink down and you sell a home and you move into something smaller or something like that. So you kind of understand where I'm kind of coming from. Is it still the American dream to own your home? If you are a person who has the capability of earning a lot of money doing something else,
Starting point is 00:37:15 it's less important to you. That's the first thing I'll say. So maybe someone in your position having to deal with the maintenance issues of owning a home or the headache of getting pre-approved for a loan. If you're in this spot and you're making good money and you're bringing good value, you're a doctor who's making great money and you got to think about doctor stuff, renting might be okay for that person. Our typical audience is your blue collar American who has a W-2 job and is kind of stuck in a form of a rat race they don't know how to get out of.
Starting point is 00:37:41 I think owning a home for that person is massively more important and valuable than it was before. Owning a home, even if they don't do some of the things you suggested earlier in like living in the basement and those kinds of things. Yes. And here's why this is what I'll say. If you guys look at what a rent was for a house out, you guys from West Sacramento, that's where you've been.
Starting point is 00:38:00 Pretty much. Yeah. What do you think rents were 10 years ago for like a three bedroom, two bathroom? I have no idea. How many years ago? 10. 1,600? No.
Starting point is 00:38:09 The mortgage was about 13, so I would say 14. You think renting was more than a mortgage 10 years ago? Yeah. So typically the argument would be that renting is less than the mortgage, so that's why people would do it. So let's say your rent in that case is like 1,100. What's the rent like now? It's why people would do it. So let's say your rent in that case is like $1,100. Okay. What's the rent like now? It's through the roof.
Starting point is 00:38:28 Yeah, $2,500 or so, somewhere in that range. Okay, so the thing is when you're renting, you don't have control over what your housing expenses are. Your landlord controls that. Now, I have a football analogy that people say I'm using it too much, so I'm loathe to use it, but you guys are football fans. I love football. He doesn't know nothing about football
Starting point is 00:38:46 over here. That's the one you play with your feet. Yeah, with your feet. Football. American football. Yes, American football. Let's take your dad's generation. When he was growing up, the way you won at football was you played great defense, you had a great running game,
Starting point is 00:39:01 you pounded the other team, and in the fourth quarter, they were tired and you ran right through them. you grinded it out and you won 13 to 9 or something like that have you seen the rule changes we've had in the nfl yeah right so how those rule changes affected how the game is absolutely right it's it's all about they want more offense you can't touch a quarterback you can't touch wide receiver the defense has been hamstrung if your gm is still drafting really solid defensive players you're just at a disadvantage because the rules are favoring the offense so you want to be investing in the area where you're going to get a better return
Starting point is 00:39:33 which is a great quarterback wait great wide receivers your running back is less important it doesn't mean they're not important they're not as important the way that the country has handled every single problem that we've hit financially has been print more money and stimulus our way out of it okay it's it's maybe not the best example but it's like hey our your body needs to sleep you need to let it recover you need let it rebuild all the all the things you did to it you tore it up nope just take some meth I feel great I'm on meth right I can just keep going throughout the night oh yeah or like
Starting point is 00:40:04 what a lot of people do is they'll take like pre-workout, you know, to do a workout. And we kind of advise people all the time, man, you're spending money on pre-workout and supplements and you're trying to find all these things. Like just work on your sleep a little bit more. An economy is just like a body. It needs to have periods of time where it's charging ahead and big progress is made. But some bad decisions are made during that time. Businesses are started that aren't very good. Industries change, right? Like technology
Starting point is 00:40:29 increases. So some of those business needs to naturally die, just like nature, just like our body. We've gotten away from letting that happen because a politician doesn't want to be the one holding the bag when you hit that period of time where we need to sleep. They're not going to be voted in. So, and both sides of the aisle, they both learned to do this, have said, let's just print more money. Let's just create more stimulus. Let's just add to the, uh, how much money we have in circulation and it's creating stupid inflation. So this is what I'm getting at. The rules of the game have changed. The NFL scores are inflated from where they used to be because they changed the rules. Money rules in our country have changed as well. Being a millionaire doesn't mean what it meant to be a millionaire 20 years ago. It's very different, right? If you look
Starting point is 00:41:09 at how much money is in circulation, it is staggering compared to how much it's been for almost the whole time the country's been in existence, right? So if you're not buying a home, you're losing control of your housing expenses because rents are going to go up every single year aggressively. You're also not being able to charge somebody else what that rent would be as things are going up. And home values are just continuing to increase. It doesn't mean that necessarily real estate is inherently becoming more valuable. It's that inflation is making it more valuable. It's a great way to park your money because you get a better return. That's the best way I'd be able to answer that question. Yeah, I love what you said. The second part of that kind of clicked and made the most sense to me, and the fact that it's not going
Starting point is 00:41:48 to go down. I mean, I guess there's highs and there's some lulls here and there, but in general, it's going to continue to trend upward. And if you have the ability to be able to rent something to somebody else, like how cool is that? If you started now at 10 years from now, that money will automatically increase without necessarily, I guess, any extra work on your part. And like you mentioned, you said 1300 was your mortgage 10 years ago. What do you think that same house as a mortgage payment would be today? Oh, it's going to be over 2000. Significantly over that, right? It was a very, very small place. So what we find is that when you buy real estate, it's usually more expensive than renting. It's very rare that it's actually cheaper unless you do that technique called house
Starting point is 00:42:30 hacking that I described earlier where you rent out parts of the house. But over a 10-year period, there's no way it's going to be cheaper to be renting other than owning. So it is a delayed gratification play, 100%. And so because I know that's how the rules of the game work, I just set my life up around that when I'm making decisions on what I'm going to invest money. And I know, Hey, I could rent the house for 2,500. I could buy it. It's going to be maybe 3,500. Well, if I'm looking at over a 10 year period, that's a no brainer, solid play. So I just got to live beneath my means for five years until my rent catches up to, or my, my, yeah, the mortgage
Starting point is 00:43:03 is what now rents are today. And then I can get that nice car that I really want. And then your house is sort of paying for your car. Do you say for the most part, the priority would be for people to kind of hone in on being able to buy a home rather than like, maybe worry so much about their car or like, like, where do you think some people are going wrong and being able to be in good position, uh, to be able to own their home? It's what they're spending their money on because in order to have financial discipline, you have to have
Starting point is 00:43:34 self-discipline. It is so much easier to just not pay attention to where your money goes, put it into the thing, like the car, the clothes, the trips, the things that other people will see on Instagram rather than what is actually going to pay you. And so if my, my philosophy is I can have a Lamborghini if I want it. I can have a Ferrari if I want it. I will not take the money that I am making it my job to buy that. I will put that money in an asset. What that asset pays me, I'm allowed to go splurge on. I was going to ask, it's actually a pretty difficult question. I'm trying to formulate it correctly. As somebody who's never had a rental property, but as somebody who has been in a rental
Starting point is 00:44:12 property, renting a house, get towards the end of your contract or whatever it may be. And it's just like, you start getting nervous. Like they're going to come check out the property is okay. It's definitely okay. But then that next email or letter saying, uh, how much more expensive rent's going to be. Um, so one part of that question is, um, like, how do you, do you just kind of look around the neighborhood and see what other rentals are going for? And then that's where your value goes up. And then the other part is like for you, like, let's say the, um, the, the mortgage and the rent are pretty close, but that rent is going to go up. How is it difficult for you to have to tell a family, hey, your rent's going up an extra 200 bucks this year.
Starting point is 00:44:58 Take it or leave it. So the first question is how do you figure out what rents would be incredibly easy? Technology just made that really, really easy. So there's a website called Rentometer. It's spelled like Rent-O-Meter. And then BiggerPockets has under their Pro Insights tab, there's a way that you can, just like Zillow will show you what other houses sold for, they'll show you what rents were. Then they'll put together an accumulation and say, hey, your rent should be somewhere between $2,300 and $2,500 based on the rooms. Incredibly easy compared to what most people are thinking about. So then as far as like what, Hey, is this family going to have to pay $200 a month more when we're looking for tenants? I'm usually leaning towards a person who works in an industry where I can expect them to be getting raises every year. Okay. Trying to think of it. You don't want to have your tenant work at Blockbuster. Right. If that makes sense.
Starting point is 00:45:47 Now, if they're in the tech industry, if they're in an industry that's growing, I'm assuming they've been getting raises that would be more than whatever that's going to be. Because while inflation makes everything more expensive, if you're in the right industry, you should be getting paid more. If it's a family member, say, hey, congrats on that raise that you got. By the way, this is great. I think most people expect rents are going to go up, but here's why I encourage homeownership. Let's say you have a moral issue with, I just don't think I should be raising rents. When you
Starting point is 00:46:14 own the house, you make that choice. You can give them a gift of 200 bucks a month of not raising the rent if you want to do it, or you can raise the rent or you can rent it out to a different family. When you're not the homeowner, you're at the mercy of somebody else. And that's what I just, that's my big, what BiggerPockets is trying to encourage people to do is to take control over their finances about where they spend their time. If you have a job you hate, this is what I think most Americans do. I'm going to go on a soapbox. They're in a job they don't like. So they show up and they give the worst performance ever. And their mentality is, well, when they pay me more, I'll work harder. Well, what boss ever looks at something like that?
Starting point is 00:46:48 Okay. What I think is if you're in a position in life that you hate, you need to be outworking everybody else with this urgency to get out of that. How do you get into the next level? It's the equivalent of, I hate my body. So I'm not going to work out hard at the gym until I get, until I'm strong. I'll work out when I'm strong. That's the mentality people have.
Starting point is 00:47:05 There's something addicting when you realize you're actually in control of the outcome you get. You have more intelligence than you think. Our capacity for intelligence actually increases as we work harder and we learn new things. And real estate is just like your average Joe's best vehicle to just slowly, steadily, blue collar style, start to build wealth and put yourself in a position where you have some autonomy over your life as opposed to living underneath somebody else's autonomy, where you're just bitter that your landlord's increasing rent on you all the time. And then people start looking to the government to sort of like, hey, we got a problem over here. You need to go fix it. Now you're giving up even more control
Starting point is 00:47:40 over your life as you let the government try to dictate what you can and can't do. And that's not good for anyone's confidence or their overall experience that they're having in the world. With someone like Dave Ramsey's approach to everything. Do you think like his like baby step method and all that stuff? I'm not sure if you're too familiar with it, but okay. Cause he's very popular and I, he, you know, his methods definitely helped us get out of debt and then get into our first home. And then, you And then we kind of just implemented the same strategies to help us get to the next home. So I'm just curious for other people that might be listening who are thinking about following his plan and all that, what's your opinion on that strategy?
Starting point is 00:48:18 Dave Ramsey is incredibly effective for people that do not manage debt very well or they don't manage money very well so his he's a defensive uh guru for lack of a better word he's going to teach you how to control your finances not spend money on dumb things he's got methods like don't use a credit card for something because if i go spend 125 bucks on the dinner of my credit card i could forget i did it the next day if i actually have to take take $125 of cash out of my wallet, that hurts. I'm less likely to go do that if I can't afford it. So I'm a big proponent of that. Just like many things in life that people tend to villainize aren't good or bad in and of themselves. It's how you use it. And debt is one of those things. If you're using your debt to buy cars, you can't
Starting point is 00:48:58 afford and clothes you can't afford and eat out when you could be eating at home. It's really wise to limit that. Now where he and I would disagree would be as a real estate investor who feels like I'm knowledgeable how money works, debt is an asset for me. This amplifies how much I can do in a good area, right? So like debt can crush you. It can spiral you down into trouble, but it can also accelerate your returns. If I can borrow money from a bank at 3% and I can go invest it at a 12% return, and then I'm paying off that debt with the money that's coming from the tenant and I'm hedging against inflation, it becomes relatively, not risk-free, but smaller risk way of amplifying
Starting point is 00:49:36 your turn. So I like Dave Ramsey because I think he's doing a lot of good in the world. I think there's too many people that are speculating in real estate. They're treating it like the stock market. I'm going to buy a house and hope it goes up. They're taking on debt when they don't understand what they're doing. That's not ever wise. But if you're knowledgeable and you understand how the thing works, well, debt actually can be like a supercharger. So this makes me curious because when you were talking about when you bought your first house in 2009, then you bought another one, you were just kind of, kind of accidentally ended up in real estate. But obviously you also went into a learning process, learning new things. Cause when you're a cop, I don't think you were, were you spending time
Starting point is 00:50:12 learning about real estate stuff or my big, my big question is just like, at this point, there's podcasts like the bigger pockets podcast. You guys have a lot of different hosts that talk about real estate investing from every single level. But what are some other things that you think people should be paying attention to, not just on the real estate side, but also on the money habits side of things? Like what's the other other individuals that are unlike Dave Ramsey that can teach people how to do other things with their money that you pay attention to and you think are valuable? I think the macroeconomic factor, what our government and our country is doing with the money supply, it would be like the equivalent of a GM who says, I'm not going to pay attention to the rules the NFL is putting in place. If you're responsible for building the roster, that would be wildly reckless to do that. So there are certain people that I listen to that just talk about the overall state of the country and the money supply. Patrick Bet-David is somebody that I follow. I really like that guy's stuff. I think he understands sort of like the holistic approach to business in general.
Starting point is 00:51:11 But what it will always come down to is your control over yourself, right? Are you so risk averse and afraid from your own lack of confidence that you keep working that job as an accountant that you know isn't getting it done, isn't giving you the life that you want, but it feels so safe and secure that you can't let it go. And so I also spend a lot of time listening to people that kind of attack the mindset issue, right? Like many of us live life much more like a computer program than we realize. We just fall into a set of habits. We do the same thing. You know, like my diet, a huge piece of that I'm sure is like whatever bacteria is in my stomach at a time that's talking to my brain saying, Hey, you need to go eat
Starting point is 00:51:47 another carb or something like that. Right? Well, you get that out of there. Those cravings start to go away. It's not as hard. There's a lot of things in life that work the exact same way. You just summed up diet faster and easier than anyone we've ever had on the show. We've had every doctor and scientist that you could think of. So money is very similar to that, right? Like, like you asked, when did I start studying it? Right. When you started going to jujitsu, did you find yourself YouTubing every jujitsu video you could get your hands on? Yeah. Yeah. Cause you're like, I don't like that feeling of getting my butt kicked at class. And now you're interested in it, right? There's this, this, this theory in the Bible that where your treasure is,
Starting point is 00:52:20 your heart will be too. Right. So what you invest in, you will care about. So that's why we start watching videos and we go to jujitsu. It's the same goes for when I bought that rental property. I'm like, no, I don't want to screw this up. So now I'm going to pay attention to it. You get into a relationship you really like, you start listening to like relationship advice stuff. Cause you don't want to mess that up. So there's definitely this, this, like you got to, like, if you guys start, someone starts going to the gym, they start lifting weights. They're like, well, what's the right form? And when should I be working out? And what should I be eating? You get immersed into that world.
Starting point is 00:52:48 I think too many people wait until they have the feeling that's like, yeah, I really am excited about working out. You're never going to get it till you get in the gym and you go do a workout and you feel like, I don't know what I'm doing. I don't like that feeling. You start asking questions. You start paying attention to the person who looks like they do know what they're doing. And you sort of spiral in that direction.
Starting point is 00:53:04 So when I bought the house, it immersed me in the culture of real estate investing. I found bigger pockets. I started reading everything. I get my hands on. That's kind of how it turned out. Pet Project family, how's it going? You guys know who Stan the Rhino Efforting is. We've had him on this podcast three, four, five different times.
Starting point is 00:53:17 Well, we've partnered with Stan and Vertical Meals. It's going to be awesome because now you guys can have Stan Effortding's cooking and his nutrition sent right to you, right to your door. Andrew, can you tell the people how to get in? Absolutely. You guys got to head over to vertical diet dot com at checkout. Enter promo code power project for free shipping. And if you order 16 meals or more, you're going to get two additional ones. Again, that's a vertical diet dot com promo code power project.
Starting point is 00:53:40 Links to them down in the description as well as the podcast show notes. Let's get back to this podcast what about um investing out of state i was just looking at prices in san antonio and man there's some really nice properties out there that are in comparison to california very cheap but again like i i'm not in a position to even like travel right now but like would you recommend that somebody like not even bother with that until they got some local stuff going? Or can you just maybe, if you aren't able to travel right now, investing in something like that's just not the right time? The good news for you is my first book was called Long Distance Real Estate Investing.
Starting point is 00:54:17 I basically document the strategies of how I buy out of state, right? The short answer to your question would be, don't look at just price point as a measure of risk. Cheaper house does not mean less risk. In many cases, it can actually be the opposite. The fundamentals you want to look at if you're going to invest anywhere would be how much does it bring in an income and what are my expenses? And for someone in your position, you want to get good at is recognizing the patterns that continually pop up. So like the income is very easy to find. You can go on Rentometer and you can say, what would a four bedroom, two bedroom house rent for around here? And they're going to give you a pretty good range.
Starting point is 00:54:52 So then next question is, what are the expenses I frequently see? Well, your mortgage will be your biggest one. Then you've got property taxes. Now, property taxes in Texas will be like two to three times what they are in California. So that's the thing where an out-of-state investor could get themselves in trouble if they don't know to look for the difference there. Then your homeowner's insurance, whatever you pay a property management and however much you're in a budget for repairs that have to get done. But really like that's, that's not that complicated. That's, there's not a whole lot with real estate investing. This is why the average person can do
Starting point is 00:55:19 it pretty well, where you would look at and see, well, how much is it making and how much is it going to cost me? And then the decision becomes pretty clear if you should buy it or not. Solid. For what you're talking about, where do you think, because no one really knows what's going to happen in the future. No one absolutely knows. Yeah. But I don't know how many people knew what was going to happen in 2008. You know what I mean?
Starting point is 00:55:41 So we're constantly printing money like you were just saying. Where do you think things are going? If someone's interested in doing things with real estate right now, is there anything they need to be thinking about in terms of the future that maybe you've noticed and other people aren't? That's a great question. And we were saying earlier, when you get involved in something, you start studying it. Yeah. Now that I'm on this podcast and I'm people like are making decisions that affect their family and their livelihood off of what I say, you spend a lot of time digging into that question because like it's scary to think about if I give you bad advice. Now, most people in my position will always default to houses are so expensive. Put your money away. Wait for the crash.
Starting point is 00:56:17 It's so easy to tell somebody. It's like saying don't work out. You could pull a muscle. You could get hurt. Right. Your mom's always going to give you that advice. Right. But what kind of life does it look like if you never work out because you don't want to get injured? So there's a degree of risk. You just have to learn how to mitigate and prepare
Starting point is 00:56:32 for. Like I heard you talk about on the Nikki Rodriguez podcast that you had a stress factor in your foot, right? Yeah. You said, well, I'm going to adapt. I'm going to work out my upper body. It's going to get bigger than it's ever been. I can still do some leg curls, that type of thing. When you have that, that attitude in life attitude in life, you're kind of fearless. It just doesn't matter what the defense throws at me because I'm Peyton Manning and I can look at that and say, okay, they're going to stack the box. There it is. Call an audible, run a different play. So as far as what I expect to happen for the country, it's not what I would want to happen. This is unpopular. I think the best thing we could do is to let that recession
Starting point is 00:57:05 happen that needs to happen. It's going to be hard times, but we are spending way more money than we're bringing into taxes right now. We have several fundamentals that are not smart, like how much stuff we get from China, right? We're giving away a lot of autonomy, that word again, coming into the Chinese as far as our own supply chain and where we get materials from. So there's things I'd like to see change, but I don't think it will happen. Now, like you mentioned, I don't have a crystal ball at speculation. It's hard for me to see a politician who's going to come in and say what I just said. Guys, we've got to tighten the belt.
Starting point is 00:57:35 15 years, it's going to be really tough. I'm taking away your carbs. I'm taking away your sugar. You're going to be on a diet you don't like, and I'm going to be the personal trainer that shows up and kicks your butt every day. But trust me, this is what's best for you. Not many people sign up for that. You're going to go vote for the person that says, no, you deserve to eat that cinnamon bun, right? It is your right. You should be having more sugar. And as a politician,
Starting point is 00:57:55 I will make sure that we have cinnamon buns every morning available for you. There you go. That is kind of how American culture has shaped up. I just got excited i'm like this is somebody i can get behind in the morning yeah if you get really all that political well now peanut butter cups in there you got my vote you see what i'm saying excited so whether it's a republican or a democrat i don't think it matters they're going to tell you what you want to hear that's how they're going to get voted in so what i think will happen is they will continue to print and print and print. Just keep making money.
Starting point is 00:58:28 Now, they're also not building homes as fast as we need them. We have a severe shortage. If you look at the inventory of like how, like think about where you guys see homes being built. It's not nearly as much as people that are coming into the country and people that are becoming of home buying age. So you combine way too much inflation with too much money going out with not enough supply. It's tough for me to see real estate prices possibly going down. Now, I think the error that some of my contemporaries are making is they're saying, well, if interest rates go up, home prices could come down. Okay. Or well, if we, if the economy slows down, home prices would come down. I think that's just, it's such a small piece of the puzzle compared to the massive supply problem that we have
Starting point is 00:59:04 that my fear is we're going to hit a point that only wealthy people can own real estate at all. Because if you look at interest rates going up and that makes it less affordable for your average homeowner to buy, that just means the person making 80 grand a year, 70 grand a year in California. But listeners, that's not a ton of money. Some people in Kentucky probably feel like they'd love to be doing that, right? You can scrape your way into a house with a three and a half percent down payment and you can actually start building equity. If interest rates went up, it would make the house maybe a little bit less affordable for a guy like me, but it's still wildly better than every other option I have. I can still afford to
Starting point is 00:59:38 pay that price. Wealthy people can continue to keep buying real estate, which takes power out of your average Joe, which is where I wish I'd like to see that opportunity going to. So I'm afraid unless we have like a policy change where they make it a priority to build houses, build more housing, that what is actually going to happen instead is you're going to see prices get so high that people go complain to politicians and say, you need to do something. I can't afford a home. And they just expand the section eight program. So maybe like half the country, 75% of the country's on section eight because rents are unaffordable and you're giving away autonomy. Right. And then eventually you get to a point where you're like, look, I can't make enough money at work. Robots are doing
Starting point is 01:00:16 all the jobs. I'm already dependent on the government for section eight housing and stimulus. We might as well just go to universal basic income. And now you're at a point where you've just lost the ability to build wealth for yourself, right? Like you'll survive, but it's not the America that we're used to. So my fear is that's kind of the direction we're going in. And even though I see home prices are going up, I'm not just telling people to buy because I have a real estate team. I'm buying real estate myself at pretty big clips. Do you think that, um, like with, we'll just pretend that the, uh, the mortgage or everything crashed now houses are significantly cheaper. Will rent follow as well? No, it never does. And this is another reason why you hear me
Starting point is 01:00:58 speaking so confidently about owning real estate. So it protects you. Yes. It's like a, the example I have is when real estate prices are going up, it's like you're climbing a mountain, you get higher and higher and higher. Well, at a certain point, prices go down and you would theoretically crash. That's how the stock market goes. But your rent is like a belay that stops you from going down. Rents did not go down during the last crash. When we had a 2010, they actually went up because what happened is everybody lost their home. They needed a place to live. There's not a lot of rentals available. So now they're actually, even though home prices went down, rents went up because there was so much more demand for the few rentals that were out there. So I've asked a lot of people that are older than me that have seen several cycles,
Starting point is 01:01:37 have you ever seen a time that rents went down? Nobody has ever told me yes. The only thing that would make rents go down would be if population left the area. So you get like Detroit. When the auto industry closed, rents will definitely go down there. But that wasn't because of like an economic crash. That was really geographically specific to the industry that fled there. So that's another reason why I doubled down aggressively with buying real estate. Because even if it drops from $500,000 to $200,000, my rent probably went up a little bit. I just keep collecting rent, weather the storm, it goes,000 to $200,000, my rent probably went up a little bit. I just keep collecting rent, weather the storm.
Starting point is 01:02:10 It goes back up to a million, and then you have the option if you want to sell again. You said something earlier that I think is really valuable. You said allowing your assets to pay for extra things. Is that still a rule that you follow? A thousand percent. So now I have more different kinds of assets, right? I have some corporations where I'm making money, and I have real estate where I'm making money. I have short-term rentals, but that principle still is a hundred percent true. I live, well, I live way beneath my means just because that's my conservative nature. But the money I do spend only comes from cashflow
Starting point is 01:02:39 that comes out of properties that I've already bought. I guess a good example for you two would be if you're working out and you're just hammering it at the gym, you can afford to eat different kinds of foods versus if you didn't work out at all, you got to be a lot more stringent with what you spend money on. So if you get a person who's like, I just can't live by this diet, I just need these things. Well, then you need to be working out more, right? That's exactly how I've looked at wealth building. If I want a better lifestyle, I just have to invest my money and get an asset paying for something. So what happens is if you buy a car, you'll never buy a house. The money for the down payment goes to the car. If you buy a house, eventually the house will pay for the car and that house will pay for your car for the rest of your life. You can get whatever car you want
Starting point is 01:03:16 every single time. And if you get five houses, now that house can pay for a vacation house and a car and the vacations you want to take and however you want, like the pool in your backyard. As long as your assets are paying for your luxuries, you never have to deny yourself. But if you go the other way around and you go for the luxury first, you never get out of that hole. And that's how most people's finances end up working. Yeah. I've always looked at things that way rather than thinking something's too expensive. I just think I'll just figure out a way to make more money. Yes. And especially if then you buy the thing and that thing helps you make more money. So there's some people that have figured out like, hey, I'm a really good lawyer.
Starting point is 01:03:51 Well, if I buy this Lamborghini, everyone will see it and they'll know I'm a good lawyer and I'll get more business. And it actually helps you in both. So I'm a big proponent of looking for those synergies. How do I get – and that comes from the sports background. I kind of like this jacket. This jacket is pretty nice. You like it? It made me take you more serious. I'm like, background. Kind of like this jacket. This jacket's pretty nice. You like it? It made me take you more serious.
Starting point is 01:04:07 I'm like, this guy's got a nice jacket. Nice jacket. I found myself looking at that. Yeah, I can't stop staring at it. I really appreciate you guys saying that. Typically, I don't do great with clothes. That's something I'm learning how to do better. You crushed it today.
Starting point is 01:04:19 What kind of jacket is that? I don't know, actually. You want to check the tag for me? Yeah, we'll figure it out later. All right. It'll get weird on the show. You want to check the tag? Yeah, we'll figure it out later. All right. It'll get weird on the show. You guys took your clothes off with Nikki Rodriguez. It can't get worse than that.
Starting point is 01:04:30 Yeah. We did do that. Everybody. I mean, how often are you taking off your clothes that you forget that you even did that? In SEMA every day, but I did forget that as well. What happened? I didn't forget. It was a great time.
Starting point is 01:04:44 I forgot. Wow. Nikki Rodriguez. It was a great time. I forgot. Wow. Nicky Rodriguez, he's a handsome guy. He will get people to take their clothes off. Yeah, exactly. He can kill everybody. That's true. That too.
Starting point is 01:04:54 What about for, again, kind of going back to just like a regular average American family trying to get into a home, and you already know what this looks like. The house is, we'll say 500k um it um the value what's it called um when they come and check the value to make sure the appraisal appraisal comes back at 500 the bank will loan them 500 but here comes an investor who's willing to put 600 with the 100 cash or all of it cash i should say. They can make up the 100 is what I meant to say. This is their third time that they've lost a house to an investor. How can this family have better odds in getting into their home?
Starting point is 01:05:38 That's a great question. And that is what the David Green team, real estate team has to solve all the time. So the mistake people make, in my opinion, is they keep doing the same thing that is not working. They're going for the prettiest house they can possibly find, but on the market for four days in the best neighborhood that needs no work. And then there's 12 other people that want it and they approach it like they're competing with the seller. This is one of the things I talk about in the real estate books that I'm writing right now. The first one's called sold. And there's like a series of those. You're not competing with
Starting point is 01:06:08 the seller. When 12 other people want that house, you are competing with the 11 other people that want that property. And they bring the wrong mindset. They're like, well, they want 500. See if they'll take four 95. Meanwhile, someone else is like, this is my fifth time I'm getting this one. I'll pay 600. And it sounds like, well, you just don't get the house, but there's actually this big emotional price you pay when you get super excited and you tell your parents and you're showing the Zillow page to everyone around you and you're thrilled. And then you get crushed, right? Oh, the girl said, no, she doesn't want to go out with me. I lost on the house. You're not going to keep chasing these girls. If they keep saying no, at a certain point,
Starting point is 01:06:41 you just like tuck your tail and you're like, okay, I quit. I don't want to do this anymore. So don't set yourself up for failure. Like one of the things that we do and I train my agents to do is your job is not just to be an order taker for that client. Hey, I'll take a Coke. I'll take a ranch. Go get me what I want. You got to tell them what they don't want to hear, which is that, hey, for your budget with the loan we're working with, that's not a house you can get. You need to be looking at houses that cost $450,000 that may be $500,000. Or we need to look at something that's been on the market for 14 to 30 days. There's something about it that has good bones, but it's ugly. Or it's on a busy street, but you don't have kids, so you can live with that. Something like that, that actually helps you get your foot in the door. And then plan your life around building
Starting point is 01:07:22 to get that house that you want. You can't be swinging for a home run right away. And part of like, what's heartbreaking for me is I'll see people come in and they'll chase after those ones and they won't get them. And then they'll do this for nine months and they'll quit. And then six months go by and then they come back in and now they can't afford that house at all because prices have gone up so fast. They just got nothing. So it's one of those reality checks where sometimes you just have to be okay with what you can actually get and make that work and build towards your goal rather than walking in and just expecting to crush it on the first shot. Yeah. And I'll just share my experience for anybody that's listening that maybe isn't believing you right now. We moved into a house in South Sacramento.
Starting point is 01:08:00 We're familiar with the area, but if you're not, South Sac is not the greatest of areas. The house was small. It was nice, though. But just like you said, it was on the market for a while. When we went to go check it out, somebody had put in an offer, but then they pulled out. So I'm like, okay, well, what's the deal? The deal was the neighbors, who were actually extremely nice, were very, very messy. But they were nice.
Starting point is 01:08:24 So we ended up getting that house uh i'm gonna screw up the numbers but we ended up making like a hundred thousand on it because we sold two or three years later and now we moved into elk grove which is an extremely nice neighborhood in old elk groves so and your south sack house paid for your elk grove house well not in total but it paid your down payment and then some. Yes. So it went in a span of only like a little bit over three years. We had seen the house that man, it would be nice to do that, but Holy shit, we're going to have to do it over here first. Yeah. That stepping stone and that shit does work. But we also lived within our means. Um,
Starting point is 01:09:02 we got rid of all our bills before we got into that house and then we didn't accrue any more. So you built your life around your goal. Yes. That's really, I'd sum up, that's what I encourage people to do. Yeah. Don't look for a situation that you don't have to change anything about yourself at all, that you just walk in and it's perfect for you. Yeah. And then to top it all off, the mortgage payment that we were paying in the ghetto is the exact same payment that we are paying right now in a nice neighborhood. So it really is a dream come true. Now the new goal is to not have that mortgage and have investment properties. Well, what you may do is sell that out Grove House, take the gains from that, buy yourself one in Roseville or Folsom or something
Starting point is 01:09:41 that you really like, have a couple hundred grand left over and use that as a down payment for your investment properties. Yeah. Yeah. How accurate is like the, cause I'll still, because we use Zillow, right. To search for everything. So I still get updates for the last neighborhood and I get them obviously now in the new neighborhood. How accurate are those? Because if that's the case, like we are doing very well again. It's a good ballpark. You don't want to use that when it comes to actually selling your property, but it is a decent ballpark. So you've done very well again and you're going to continue to do good. So what I would actually say is what could be tricky for you or possibly problematic
Starting point is 01:10:17 would be you say, well, I'm doing really great on my Oak Grove house. So I made a good decision. What I would be looking at is I did a really good thing with Oak Grove. It's going to continue to do good. How do I do this three or four more times without it taking on a ton of risk? Because prices are going to continue to go up. The tide are going to rise. You want more buoys in the water as that's happening. What about attachment? We love this house and it would be hard for me to go home and have that conversation to tell my wife, my daughter. My son doesn't understand me just yet.
Starting point is 01:10:47 He's about to be 10 months old, so that'll be an easy one. But to be like, we're going to invest in something else and move on. You'll probably only like that house for so long, I think. Sure. Like, you've only been there for, what, a year? A little bit over a year, yeah. Yeah, I think two, three years from now, when he's mentioning you're going to going to probably continue to do better when you continue to do better you'll probably have different taste buds right yeah okay there you go be a little hungrier maybe i think you got to paint a picture
Starting point is 01:11:12 for your family like your wife in this case that is hey this is our overall plan and if we own enough real estate or we make enough money we can have this dream now by comparison your house seems much less important if you don't have that that's like there that's where the attachment is elevated in your own mind and then the reality is you could buy like a duplex or a triplex you can move into one round the other to bring your housing costs down now you got two properties run out your Elk Grove house and if you hate the duplex you can move back into your house right there's nothing that prohibits you and then people get stuck on that a lot of the time too they're like but what if what if I hate it? Can you take a year out of your life to live somewhere
Starting point is 01:11:47 that you don't love and then just move back into your other one later? What are some, cause like we've been talking a lot about like, you know, getting into your first home, et cetera, but you moving into sales, starting off as a police officer, what, um, were you just, did you just force yourself to get better with people? But I'm assuming you looked up resources, you looked up things in terms of getting better at relationships, getting better at dealing in person to person, sales, conversation, et cetera. What were some things that helped you get better at that skill? I joined a Keller Williams brokerage and they had very, very good training.
Starting point is 01:12:19 So I started going to events and learning from guys like Gary Keller, who in that real estate space, he's a genius. He's very, very intelligent and has done this for so long that it was one of those things. Well, if Gary says to do it, I can just trust. Like if I wanted to start working out and Mark, you said, Hey, do your form this way. I'm not arguing with you about how that would work, right? Either of you two. Um, so it was very easy for me to have, um, that mentor, that guy that would say, Hey, here's, here's the things you have to do different. What he really did was he taught me how to think like a business owner. Cause that was not a skill that I had. Cops are not business owners at all. Right. We're still that W2 worker.
Starting point is 01:12:53 So that, that helped a ton. And I immersed myself in that world. I didn't just kind of like pick and choose. I just went to class after class. I would meet other agents that were doing really well and I would pick their brain constantly. I think one thing that I encourage other people to do anytime you're trying to learn anything is learn it with the intention of teaching it to somebody else. So if every day you go to jujitsu and they're teaching you a certain arm bar, and as you're learning it, you're thinking, how am I going to tell my little brother how to do this or something? It sticks with you so much better. So because I hired an assistant relatively quickly and I started bringing agents to help with me, everything I learned, I had to translate it to how I would teach them and the gaps in your knowledge
Starting point is 01:13:29 become very apparent when you start to like try to teach somebody else how to do something uh back to you know investing stuff um I had seen I had I had gotten a free coaching session I know I'm taking full advantage and then I'm gonna get your number and then blow your phone up again. I had got interested in all of this stuff. I mean, and when I say interested, I mean like I would kind of peek through it, but I never researched. I never tried to learn. I never tried to do anything. It just piqued my interest. I would see a lot of people flipping houses, and I know we're talking about renting and stuff, but what about as far as buying the fixer upper with the intention to either sell or rent? Should somebody be looking into something like that to get in there a little bit quicker or a little bit easier, a little bit less risk? I know what you said about risk earlier. Or should it be something that, okay, maybe there's not that much stuff to do to it, and then I can get somebody renting or I can get somebody purchasing much faster. So was the question, should I look for a fixer upper versus like a turnkey house?
Starting point is 01:14:30 Or was it more about flipping versus buying? Let's just turnkey. Okay. I don't know that the risk is necessarily less with a fixer upper. Your upside is more in general because you're getting it at a better price, But the risk is more associated with how your personal finances can handle the costs associated with owning that property. So if you're saving two grand a month and you get a property that's going to possibly cost you two grand a month, regardless of if it's a turnkey or if it's a fixer-upper, that's risky for you. The only time you lose in real estate is if you can't make that payment and the value of the house is less than what you can sell for both of the, it's kind of like firearm safety, right? Like if you, you should never point your, your firearm at someone
Starting point is 01:15:13 that when you're not planning to shoot and you should never put your finger on the trigger. But if one of those things goes well, you're not going to have an accident. Okay. Like that's one of the things I really like about real estate is that it almost takes the perfect storm before you're actually going to lose it. So what I would say is you should look for fixed or upper properties or more importantly, something less than market value because of a problem. Fixed or upper is the most obvious one that you're going to see. Okay. Your issue is like a neighbor that's messy. That's a problem other people didn't want to deal with. That made you a hundred grand because you're willing to deal with the problem. Pretty freaking
Starting point is 01:15:43 sweet. Right? So look for houses that have problems. Don't run away from the hard thing. That's just another mistake that a lot of people make is when they're trying to find their opportunity, they're trying to do it in a way where this works for me. I don't have to take on any headache, but everyone who makes money, every entrepreneur in our country solves a problem. That is how, and the better problem you solve or the more problems you solve, the more money you're going to end up making. So I would say you take that same mentality into real estate and you recognize this is the ugliest house in the best neighborhood, right? This is the nicest house that I can get for the money I have. And you know what? I don't like the risk. So we're going to sell the Benz and I'm going to drive a Civic for a little while
Starting point is 01:16:21 because that's going to kind of decrease my risk profile. And it actually works the same way as like what jujitsu is doing. Now that I'm doing that, I don't want to eat bad food. I won twice. I'm getting exercise and I'm eating better. Like that's one of the ways that when you start paying attention to what your money is doing for you and you see it can actually make you more money, you spend less and you start to get that return. And do property managers take quite a bit of the, you know, do they cost a lot? I don't think so. Typically in California, somewhere between 7% and 10% of the rent is what they're going to take. So it's not, it's like 100, 200 bucks a month. That's insane.
Starting point is 01:16:53 What's your issue with consistency in terms of the gym? You mentioned it's not easy for you. The biggest one would be injuries and getting sick. So like I had a period I was telling you about where for four months I lifted all the time. And it was like, at the end of that four months, I was, I can't believe I'm getting this strong. It was just like, literal, like I was seeing big increases. And I had a day where I hit 275 on the bench, which for me was like, I didn't think as I was a pretty skinny kid. I didn't think I was ever going to hit that. The mistake I made is I then immediately went to
Starting point is 01:17:22 the incline bench was like, what can I do here? And I threw two plates on and I messed something up in my shoulder. Right? So then boom, I'm depressed. I can't work out. It never got better. And then once I get out of it, it's like I build momentum in other areas of life and I forget that I just haven't gone to the gym. So I think in addition to areas where I'm inconsistent, the problem is I try to make up for that with intensity. It's like, well, I don't go to the gyms when I finally go, I just want to blow it out. And then I'm sore for a week and a half or two weeks. You can't, right. So that's one of the things that jujitsu has sort of forced me to confront is that I cannot intensify my way to skill. And you got to go and learn and let your body develop these movements and like, let it kind of fall into place.
Starting point is 01:18:03 And I'm, I'm putting a bigger value now in consistency and I'm trying to rebuild my life around that. So one of the things I did is my assistants control my calendar. I can't keep up with that. So it's blocked in there. These are the days that I'm going to jujitsu. Once I figure out what I, how sore I will be, how tired I will be afterwards, right? Then I'm going to block in. I'm going to the gym at this period of time.
Starting point is 01:18:26 So I've got these like rocks in my schedule you can't move, and they got to build around that. I don't know what name you want to call that principle, but that's something I'm finally starting to put more emphasis on. David Green principle. Yeah. A suggestion would be kind of think of, maybe think of some of this stuff as, you know, something like a rental property,
Starting point is 01:18:46 which you're encouraging a lot of people to maybe work towards at some point. Having income come in that you're no longer really working that much harder for, I mean, I'm sure there's some concerns of having a rental or you might need to get a property manager or like there's a little, you know, there's a little stress there, but you have money coming in from that. You can kind of think of, if you can start to, you know, get yourself in a routine where you're exercising consistently, you can kind of view that as a little bit of like money in the bank. You know, we kind of say on this show that money is muscle and it can help with, it's going to help be an amplifier for everything that you do. So if you think about, again, back to the rental, I mean, somebody having whatever amount of money that's going to come in from a rental is going to be an amplifier for pretty much every single else, anything else that they want to do, whether they want to start their own podcast or write a book or start some other business. Now they have extra money they can kind of play with. So you can kind of view your workouts as being something like that.
Starting point is 01:19:48 I'd also say that, first of all, for your shoulder, I would explore looking into finding somebody locally that can work on the shoulder, somebody that is well-versed in, like, injury, not necessarily just a massage. But that actually should be fairly easy to find someone that could probably help you quite a bit, especially now that you're in jujitsu. I'm sure you can ask around the school and they'll probably say, oh, you got to go to this guy. He's going to be able to help a lot. Is there a certain title? It's called active release therapy.
Starting point is 01:20:15 I've heard of that. Yeah. It's pretty much one of the ones that I've used over the years that's been really helpful. And sometimes that's not the answer. You may have actually tore something. There might be something worse in there. And also just explore like lots of different training styles. There's so many different things that you can do. If you flip through some of our podcasts, you'll just see like we've had so many different guests on talking about so many different things. But one of the things that we all love to do, which is really simple and we can kind of show you on your way out of here today, is just doing some sled work. Just walking with the sled forward, backwards. Not everything has to be kind of your typical like, you know, leg pressing and curls and overhead presses and stuff.
Starting point is 01:21:00 We've found a lot of utility and a lot of exercises that are, I guess you could kind of almost just say they're like movements more so than anything, like where we're doing squats on like a slant board. And again, it's more about the slant board allows you to squat down a lot lower. It's more about the appreciation of having your body be able to express itself in a full range of motion under control rather than kind of like gritting your teeth and turning purple and trying to lift as heavy as possible those things are fun and you might already kind of dig some of those things but sometimes it takes a it takes a good amount
Starting point is 01:21:35 of energy just to even get yourself to think like oh fuck i gotta go do that yeah whereas when you start to work out with some of the stuff that we've found, you almost every single time, I mean, every once in a while you might overdo it still here and there, but almost every single time you work out, you feel way better. You feel way better. And it helps you. Um, I mean, you're walking out of the gym feeling better rather than like kind of walking out of the gym, feeling like wiped out and destroyed and maybe feeling like you're in a barf everywhere. I think I've noticed that when I do start the day with a workout, eating better is easier to do.
Starting point is 01:22:10 You have this like buzz, you don't want to kill it. Yeah. Versus if I don't work out, I'm going to want to like drink extra caffeine or eat bad food to get the buzz, right? Is that like something you guys have found as well? A hundred percent. Yeah. The nutrition and the training, they kind of go hand in hand. I hundred percent. Yeah. The, the, uh, nutrition and the training, they,
Starting point is 01:22:25 they kind of go hand in hand. I just don't eat. He does. He does a lot of intermittent fasting. Have you ever tried that before? Yes, I've tried it. Uh, and it was, it was tough to stick with it. Have you, have you done, uh, diets before where you, uh, eat like a little bit low, lower carbohydrate? That's what i'm doing right now definitely less of that um and the key is just having that food around me if i have it around me i do pretty well if i don't man like i just i'm not as willpower as i want to think when there's not food there and i have to go buy food that you can text me anytime you want and we can go back and forth and i can kind of walk you through like you know there's always options there's almost always
Starting point is 01:23:03 options it just kind of doesn't seem like there are because all the delicious foods are the ones that are in the front of our mind and we're not really noticing that you can actually go through In-N-Out Burger and get a Flying Dutchman and get the burger without the bun. I mean, there's always some options. But what I'll tell you is that a ketogenic diet, not even necessarily super keto, but like a ketogenic style diet and intermittent fasting, they tend to go well together. And a low carbohydrate. Yeah, and a low carbohydrate diet. One of the things that is helpful and what helps make a ketogenic diet work really well is that it works a little bit like fasting.
Starting point is 01:23:43 So it's going to assist you and allow you to become a little bit more comfortable with hunger. You'll hear people sometimes say, I had some scrambled eggs this morning with some cheese on it, and I didn't eat again until two o'clock, something like that. And so the two tend to go hand in hand. And even as Nseema's pointing out, even just like low carbohydrate, where you're not necessarily trying to eat like tons of fat because the keto diet, while it is pretty cool, it can be a little weird at times. Did you two have a struggle when you first started affecting your diet or was it never really something? Oh, no, it sucked. Trying to do fasting.
Starting point is 01:24:19 We both thought it was we thought it was stupid. Yeah, it was. It's very uncomfortable for like the first few months because you're used to eating breakfast. You're used to eating every few hours. But when you learn how to use certain tools like caffeine, electrolytes are extremely beneficial. One thing you'll find is if you're not hydrated, you'll just usually drink a lot of water. But if you're electrolyte deficient, meaning you don't't have like sodium magnesium potassium like we have in those element packets um you'll feel hungrier even though you're not actually hungry you're actually just because your body's telling you i need this nutrient and it's
Starting point is 01:24:52 telling you through you're hungry yeah i crave like sweets and stuff yeah you get all kinds of weird cravings um that was actually really good by the way that chocolate mint it was surprisingly i don't like mint i don't think you like mint. I'm not a mint fan either. But that mint chocolate, I don't know. Tell people where they can get it, Andrew. You guys got to head over to drinklmnt.com slash powerproject. You guys can get the free sample pack. It's an eight sample pack.
Starting point is 01:25:16 You just got to pay the $5 shipping. Or if you're ready to dive in, just get that value bundle because you're going to get four boxes for the price of three. No code needed. Just hit the links down in the description as well as the podcast show notes but again it's at drink lmnt.com slash power project but for somebody like you like the reason why i think fasting works so well for us also is because like we're always like busy you're you're you have so much work during your day like for me it got to a point where i don't even think about food until
Starting point is 01:25:42 i'm finally done working like oh i like, oh, I'm actually hungry. Okay. And so we also have vertical meals. These are like instead of going and getting something normal at fast food, I will sometimes go to In-N-Out and get some Flying Dutchman, which is just like, again, patties and cheese. Delicious. It's fucking amazing. But if I'm really hungry, I'll have vertical meals right there. So like I don't end up making the worst option.
Starting point is 01:26:03 Just a meal prep company. Yeah. hungry i'll have vertical meals right there so like i don't end up making just a meal prep company yeah well the the meal that i was eating when you walked in that was a breakfast scramble from vertical meals it i forgot the amount of calories but it had 32 32 grams of protein and it tastes phenomenal yeah it's incredible and there's just a lot of little things just making sure you have like protein on hand you know i mean or something and always an option if you get really fucking hungry but um yeah i mean you're you're a big guy and so the the hardest thing is to try to how the fuck do we manage your hunger how do we manage and you mentioned you were heavier just a couple
Starting point is 01:26:34 months ago it's like how do we manage uh whatever body weight you were at then how do we kind of continuously work on that because even when you if you get yourself down to let's say like 200 pounds or something like that or 220 pounds um your your body's still going to kind of remember how hungry you were previously it's like that's going to continue on for a while that's a good point i used to be 330 pounds and so like i'm still kind of fighting off that fat bastard i still i could be man i could weigh 270 by the end of the year. I think if I started in six weeks, if you want. Yeah. Yeah. I think, yeah, it wouldn't take very, it wouldn't take very long. I'll just start swelling up. Do it. What sounds like you guys have really embraced what I was talking about earlier,
Starting point is 01:27:17 where you got to build your life around what your goal is. So you guys know, this is the areas I get in trouble eating. This is what I have to do to make sure I work out. And now you've got all these cool tips that you figured out. That's what I would just want to encourage. I'm excited for you because with all the success that you have, it's all going to be fucking amplified when you can, when you can, when you can start to kind of master, you can start to kind of master your hunger and master your cravings. And you're just no longer, uh, so driven by it. Like it sucks, man, when it grabs you and you feel like you can't fucking do anything about it.
Starting point is 01:27:51 But there's something nice about kind of inviting it in, being like, yeah, I'm going to fucking fast the whole day. Bring it on. Like, let's see. Let's see what happens. And I've messed around with all kinds of different fasting. Sometimes you make the mistake of over fasting and then you end up binging,
Starting point is 01:28:05 but you start to learn from it. You're like, okay, that makes me actually worse than I was without ever exploring it in the first place. But you'll, you'll tend to figure out a way to kind of like error correct over a period of time. I really appreciate that guys. That is, what I love about these things is where, you know, like finances has never been difficult for me. Even as a kid, I was saving birthday money, saving Christmas money. When I hear about people with gambling problems, it's just I don't judge them because I don't understand that. Like it's never been hard for me to want to gamble. But other areas like exercise and food, I've had periods where I was in very good shape
Starting point is 01:28:40 and periods where I look like, you know, the Michelin tire guy. It's terrible. Like that consistency has been tricky. And when you guys are sharing advice and encouragement and I look like, you know, the Michelin tire guy is terrible. Like that consistency has been tricky. And when you guys are sharing advice and encouragement, and like you said, the ability to text you and reach out in an area that I'm weak, that builds a bond. Just where I want to be able to share my information that I have an area of strength that other people that may be weak. And that's another thing that like, if you can get yourself around people that can help you in the areas that you're weak, man, it's just one of the best forms of brotherhood you could find. Yeah understand we fucking love food yeah no i i can eat as well but
Starting point is 01:29:09 that's the thing that that fasting has helped honestly all like both of us with is because i i've had a voracious appetite like for the longest time for me like my thing was like how can i actually stay lean without feeling like shit because whenever i would get kind of lean i'd be like i need to i couldn't stay there for a long time. I'd just gain a lot of weight back. Cause I couldn't stick to that. But because fasting has allowed me to become friends with hunger and not, um, now when I'm hungry, it's not really an uncomfortable thing anymore. It's not like, Oh, I have to reach for food. I'm like, I can wait another few hours because I'm used to that feeling. Now it's like with that, we're, neither Mark or myself, we're not dieting.
Starting point is 01:29:47 We don't look at it as dieting. It's just super easy now. It's not something we even think about. So that happens over time. It's kind of amazing you guys are able to keep the bulk that you do have if you're not eating all the time. It's because we don't have any problem putting away food. And protein especially. So when it's time to eat you know we still eat but yeah this there's something called just protein leveraging and it's just very simple like if you just have protein as your main priority um your other functions of your diet can be like a little bit off but for the most part i mean you want to still eat clean food but having protein be a priority really tends to slow you down in your tracks a lot. So if you were to, if you were fasting for most of the day and then you ate a pound of ground beef, I mean, it's like, you know,
Starting point is 01:30:37 you still might be able to pack away some good food. And certainly if you were to switch to like, you know, going from eating the ground beef to eating like Ben and Jerry's, you'd still crush the whole Ben and Jerry's because there's something called palate fatigue where you start to get tired of eating kind of the same thing. So if you just kept eating meat, you would probably tap out at some point. But you could literally eat that meat and eat the protein until you're just completely stuffed. And you can even wait another 30 minutes and you might be hungry again, say, I'm going to get a second helping. I'm going to get a third helping. It's not going to make a dent in your overall calories for the day.
Starting point is 01:31:12 I mean, unless the fat is like some crazy thing through the roof. So that's the way we kind of get away with it. I usually eat about two meals a day. Sometimes there might be like a third thing in there, like a protein shake or some fruit or something like that because I like to – I have a sweet tooth. So if I don't cure the sweet tooth thing, then I end up rummaging through my pantry in the middle of the night. So that's not a good idea. So I usually try to mitigate that with protein shakes and fruit and cottage cheese and yogurt and just as many different things as I can throw at that motherfucker as possible. Otherwise, the beast will kind of come out and start to take over.
Starting point is 01:31:52 Well, it kind of sounds like when we were talking about my calendar and how if I put that thing in the calendar, nothing can really go wrong. They've got to build around it. You're almost like that protein is the spot in your calendar that you're marking. Like if I'm hungry, I'm eating a bunch of this, and it limits how far you can even get into eating too many carbs or too much sugar because you're full. Is that the idea? That's extremely satiating. Protein is the most satiating macronutrient. I mean, that's what, when people do normal diets, they talk about, oh, add a lot of fiber and vegetables in because they want to eat a lot of like more carbohydrates
Starting point is 01:32:19 and fiber will bulk and fill your stomach up. But protein does kind of the same exact thing. Imagine trying to eat five hamburger patties. Yeah. You'll get pretty full. You know what I mean? But when you think of like some rice and eggs and whatever, like it's like thinking about eating a bunch of Chinese food. You can put down a fuck ton of Chinese food. Yo, you put down a fuck ton of Chinese food and you could just keep eating and
Starting point is 01:32:45 shoveling it down because it's a great mix of protein and some fat and some carbs, right? It's super easy to shovel down. So that's why, yeah, protein and fat and minimal carbs is kind of how I operate. And same with it.
Starting point is 01:32:57 But I like what you said is everyone knows you're supposed to do that. Okay. But who can do it? Right. You're actually giving me a technique that makes it easier to do that. Right. And like, that's, isn't that awesome that technique that makes it easier to do that, right? And like, isn't that awesome that we have YouTube and social media now
Starting point is 01:33:07 that you can talk to some of the most intelligent people that are the best at what they do in the world just by pulling something up on your phone and looking at it, right? Oh, it's amazing. Imagine living like, you know, in the BC area where if you had one smart person in your village, you had to like freaking walk three days
Starting point is 01:33:22 to find another village to hear a smart person talk. Well, and they said some really smart shit back then too. It's unbelievable. They had like amazing philosophers and people knew tons about the stars and shit. I was just going to say that. It's like how the hell did we know anything back then? We barely had like a round wheel. You know?
Starting point is 01:33:40 It's like shit, man. Unbelievable. But quick question. In terms of your daily habits as far as like development and continuing to learn new things? Because like you do a podcast, you're on the BiggerPockets podcast. So that means that, number one, you obviously know a lot about what you do. But my assumption is that you're continuing to like learn new things because you need to bring more stuff to your audience. So what's your process in terms of like just not even learning about real estate stuff, but what do you do each day that keeps you productive or what allows you to
Starting point is 01:34:08 stay productive? The first thing I do is I don't have a name for what this is, but I always set a goal bigger than what I know I can actually do like a stretch type of a goal. Okay. And often that how much bigger, not so that's a good, like it's like, it's something that would still have a decent jump off point like you you could get there like you you know you can get there i can get there but not the current version of david as i am now i see right so let's say like i hit 275 on the bench my stretch goal would be like 300 not 500 that i'm just not even going to want to go or i'm going to hurt myself trying to do it right so in order to get from 275 to 300, it forces me to sort of reverse
Starting point is 01:34:45 engineer. What's the process I have to do if I want to go there. It makes me learn things. I didn't know what makes me get stronger in other areas. So what that looks like practically for me is we want to sell the goal to sell $200 million in real estate this year. It looks like we're going to hit that goal, right? So next year, can we do 300 in order to do that? I will, I can't do it with the current agents I have. I'm going to have to get more agents on the team. I don't really have the bandwidth for more. I have to promote another leader.
Starting point is 01:35:11 I hope you're all listening. Right. In order to promote a leader, I need to develop a leader on my team. Okay. Now I got to identify who that person is going to be, get to know them, figure out what they look like at a level of excellence. And now I have to help train them to that point. Well, what do I need to know to do that? Now I need to go start listening to YouTube people or reading books or finding other mentors that have the skills and
Starting point is 01:35:34 leadership development that I don't have. So rather than sort of saying, I want to go do this and I'm just going to keep doing the same thing until I hopefully get there. It's definitely like a reverse engineer. That's what I did my TED Talk on with Matt was like how you can line up dominoes backwards from your goal and build momentum up to get there. So I think for most people, just setting a goal for yourself that you have to be a better version of you to hit, right?
Starting point is 01:35:56 So this diet goal would be a really good one, right? The David I am now is not going to be able to get there. I'm going to have to learn how to restructure the food I have around me. When I'm going to eat, eating a bunch of protein first, that's going to force me to deal with whatever ways, like we started off this talk with a Jocko where I was saying we cheat in life. Okay. Am I using food to deal with things that emotional issues that I don't want to deal with? Right. Like that's what most people are doing all the time. This will expose that that's what I'm doing. And then I
Starting point is 01:36:21 have the opportunity to like make a different decision. So I've always been competitive, but not necessarily from like an insecure. I got to believe if I don't think I'm the best that I'm nothing. It's more than if I'm striving for number one, I have to grow. There's no way to not grow if you're always competing with, with, with other people or with yourself. Right. So what was the original question that you you would phrase your your habits during your day that allow you to continue being productive like what are the things that you do each day the first thing is I start off the day listening to a video a podcast somebody that I respect like a Jocko Willink and I recognize as I'm listening what are the ways that he processes information that I don't so Jockocko is very famous for like, your arm fell off.
Starting point is 01:37:06 Good. Right. He's going to like good his way through a bunch of stuff. When I start my day off thinking that way, when things go wrong, it's now fresh in my head. Like, don't be a little bitch about that. Ask about how can I make sure that doesn't go wrong again later or ask how this is going to make me stronger.
Starting point is 01:37:21 So it puts me in that mindset. Then it's sort of managing the chaos that's coming at me from all these directions. So I have the podcast where I'm constantly having to keep up with what's going on in the government. How are the rules changing? How do I become a better speaker? There's certain people I listen to
Starting point is 01:37:35 just because they speak well. Henner Gracie is a guy who teaches jiu-jitsu. He's got a mouthpiece on him. That guy can just talk and talk and talk and just be, right? Chael Sonnen is another guy that I just love to listen to chill. It doesn't matter what he's saying. He's so good at saying it that I want to keep listening.
Starting point is 01:37:51 And I'm looking to build that skill in my life because I see that that's powerful. Then I'm writing books like all the time. There's a book I'm writing. So I'm trying to figure out how can I get my thoughts articulated into words because then they translate very easy into on paper. So I'm having conversations. It sounds crazy with other people all day long that they don't know I'm talking to them, right?
Starting point is 01:38:12 So I may be having conversations with you two tomorrow based on what I know about you as I'm trying to articulate why this was difficult for me or make sure I understand what you were really saying. Then I'm in meetings constantly with the other people on my team where I'm looking at what they're accomplishing, where they're falling short, where they're doing great, and how I could give them better advice to help get them there. So I'm in their head a lot of the day too. Like, man, Johnny's got to be thinking this and he'd be really good if he could get this part down. Or this person always looks for approval and they're so much better when they're decisive in making decisions. What video can I send them or what
Starting point is 01:38:44 advice can I give them? It's sort of a situation where I don't have to be intentional about blocking off time to do that because the demands of the environment I put myself in would require very similar to what jujitsu is like, right? You start rolling, you recognize where you weren't good, you know what you need to do the next day. And there's a very big incentive to go fix that. Right now it's just cardio. Can I remind myself to get my body relaxed and only have the parts of my body that need to be working engaged? Because I just go into like fight mode. Like when you're a cop, you're terrified.
Starting point is 01:39:15 You're getting in a fight. This person could kill you. You want to end that fight as fast as you can. That does not work in jujitsu with a person who knows how to fight. So I think like you were saying earlier you're a big proponent of throw yourself in it and figure it out if you can do that in a reasonable way discipline goes out the door you don't have to be disciplined because you just don't want to get choked out every single day you don't want to be in it yeah that's exactly
Starting point is 01:39:37 right you create an incentive for yourself to want to learn so um and i know the difference between when we're like drilling something and the instructor showing you the technique and you're like, yeah, I got it, man. This is how you do it. But then you actually get into the role and it didn't work. And you're like, I never want to make that mistake again. Show me exactly what I need to do. Cause that was four minutes of hell. Cause I let that person, you know, take my back or whatever. Wow. Yeah. That's a great way of looking at it. One thing I just in hearing your, your, uh, just in hearing the way that you were talking about it. One thing I like to encourage
Starting point is 01:40:11 people to do is to even, even like, uh, using certain words, you know, like, uh, using the word chaos. You've talked about like how you do these things for yourself in the morning and you kind of prep yourself and then you are trying to figure out a way to deal with the day's chaos. Something that's been helpful to me is just recognize it as it's not chaos, you know, to work on what I would call just like reinterpretation, you know, trying to think this isn't necessarily chaos. This is just a lot of stuff that has to happen for us to get to 300 million and hopefully 400 million this year. It's just part of the project. It's part of the process. So what's the benefit in redefining it? Because chaos, I think, kind of denotes maybe a negative, maybe denotes like a little bit of a
Starting point is 01:40:56 negative stress. So maybe kind of thinking of just that there's some work to do, of just that there's some work to do because my reinterpretation of the word work even is just to consider it an opportunity. Yeah, because work is negative. Yeah, it can be a negative, yeah. And even the word hard, it's like I try not to, I try to make sure that something's really fucking difficult if I'm going to use the word hard and try not to,
Starting point is 01:41:28 I understand it's just language and it's like the way that we talk and it's a way to collaborate and way to have fun and to fuck around kind of. But I also think that it's really important that we work on reinterpretation so that we can kind of continue to get better and continue to have bigger and bigger goals. I think that's brilliant. One of the, like I get asked a lot when I was buying my first rental properties, it was the waiter money. But then after that, it was overtime as a police officer. So I had a period of time where I was working over a hundred hours a week, right? I'd work a 20 hour shift, sleep for three hours in my car, show back up, work 18 hours, sleep for four hours, right? It was not good for my health, but that was basically how I built up that nest egg to buy these properties. And I'll have people say, how did you do that?
Starting point is 01:42:06 Yeah. It was redefining what hard was. I would say, look, yeah, that's a long time to stay awake. But really, I'm in a vehicle that's doing all the work. I just have to move my foot this far around the gas pedal. It'll move it. It's a temperature-controlled environment. A lot of the time, I'm actually sitting down writing reports.
Starting point is 01:42:21 It's not like I'm chasing people the whole day. I would talk myself into, hey, I could be going down into a volcano in China, pulling out sulfur. Somebody locked their fucking keys in their car. That's exactly right. Like there's something, there's some machine doing the majority of the work that I'm being asked to do. And when I started thinking that way, it doesn't seem hard. Like I'm like, this is 20 hours of a cushy position compared to chopping down a tree all day long or something more difficult. And so the minute you tell yourself it's hard. Now, if you were to 10 hour day and you got to work 12, you're a victim. This is not fair. This is ridiculous. I got held for two hours. I was supposed to get off
Starting point is 01:42:52 and you're in a bad mood. Whereas if you told yourself, well, it's only 12 hours. I did 20 the last time. It's not that bad. And I think you guys probably naturally had to develop that as bodybuilders that you're pushing yourself to a brink and you're constantly having to tell yourself that this doesn't hurt. I can handle this. It's like that game that gets played. I think the people who aren't doing hard things don't learn that. And they're, they're talking themselves out of being successful, right? Like my boss wants another report done. Like what you're really asking me to do is move your fingers like this on a keyboard and think a little bit as you're going. It doesn't have to be the minute you tell yourself it's hard,
Starting point is 01:43:24 you start finding excuses to not do it. Are you working on a new book? Yeah. So I wrote, my last book to come out was for real estate agents. It was basically this, Hey, your new agent, no one tells you what to do. It's, it's terrible in our industry having to figure it out as a new person. So this was a book that tells you all the things you got to do as a new person. My next book that should be released in a couple months is going to be, this is how you do it really well. This is how you become a top producer. And then the third book that I'm working on right now is about how you build a team, how you leverage those skills onto other people so that you can either have passive income because your team's doing the work or you can scale and have several of these things. And then the book I have after that that I have a contract to write is going to be, I think it's going to be called Pillars.
Starting point is 01:44:02 And the idea is wealth building simplified. You make more money, you save more of the money you made and you invest the difference. And it's just going to be, here's techniques, mindset, psychology, opportunities to make more money. The stuff like what we talked about, that would probably be a part of it. Quit telling yourself it's hard. It's not freaking hard. Right. And then where are you spending your money? Are you tracking it? Are you budgeting it? Like what you guys just discussed is like caloric intake. How much protein are you eating? You're naturally tracking what you're doing.
Starting point is 01:44:29 You start applying that to your money. You start seeing where it goes. It works exactly the same. You get financially fit. Then the last piece would be, hey, now you got a delta, a difference between what you made and what you saved. These are some investing strategies that would work like what we talked earlier. Any other investments that you are pretty keen on? Do you mess around with cryptocurrency or anything like that?
Starting point is 01:44:47 I haven't so far, but I do see that like this meta thing that's going around right now. I don't know that it's going to be the healthiest thing for human beings, but I think regardless of what I think it's going to happen. So I'm looking at like how it would look to have my loan brokerage that instead of I could have people all across the country and they all put their goggles on, we meet in a virtual office and that's how we give them their training. So like buying virtual real estate, accumulating money. Now what I've noticed is a lot of those metaverses are tied to a specific form of cryptocurrency. There's actually a connection there, which makes it a little bit more complicated. So I'm not sure. I don't just buy crypto to wait and see what's going to happen. But I do think that that's the future of where work is going to be heading, is where you don't want to commute. So you just put these goggles on in your den. And then you sit there and you're in this virtual little office that looks like this where you talk to people. So that's something I invest in. I still invest heavily in real estate, but I just get into different types of real estate. And then I'm starting more companies now. So I started a loan brokerage this year. We've done awesome. That one's going to sell
Starting point is 01:45:48 almost $200 million in loans. It's only been around for seven months. So I think next year, that company, we will be taking on a lot more actual loan officers. We'll be licensed in other states. That's got some incredible room to run. And then starting to piece together all the little aspects of a real estate transaction that go frustratingly bad. So I want to own an escrow company so I can control the problems that happen. I want to own a construction company so I can make sure that contractors are coming out there that know what they're doing and aren't ripping people off. I want to have a home inspector on my team that can make sure we're doing good work.
Starting point is 01:46:18 So that's the last thing I'd say I'm investing in. This is how that shit happens. I know somebody that has a company and they make boxes. And they own two separate companies that make two different – totally different types of boxes. But they also own like tons of property where they have a forest and they have these – I mean they own these contracts with people that will chop down the trees and so forth. that will chop down the trees and so forth. But I just found it really interesting because the guy owned one kind of small business where he made boxes.
Starting point is 01:46:49 Everybody needs boxes to ship their crap in. But then they made kind of the smaller boxes. So when you get, say, like Monster Energy drinks and you get them from Amazon, if you buy them in bulk, they'll have kind of a small, almost like a beer-style box around them. Kind of like when you get a Starbucks when you carry your drinks out.
Starting point is 01:47:11 Yeah, and it's got the logos on it and stuff, right? Then there's the box that goes on the outside. So he just makes all this stuff, and I just found it really fascinating in communicating with him just how it started. But it started with him being super frustrated because he had to deal with all those other companies all the time and he's like these people suck man he's like they're always overcharging they're always doing this way he's doing that that half the stuff isn't even printed properly so then he ends up you know figuring out a way to you know buy that and buy the uh the prints you know the things that are the machines that will print on the boxes and so forth
Starting point is 01:47:43 and i'm just like holy shit man but sometimes that's the way it will print on the boxes and so forth. And I'm just like, holy shit, man. But sometimes that's the way it has to go. Right. You had asked me earlier, like, how'd you get into real estate investing? Almost everything I started. This is the simple truth.
Starting point is 01:47:54 I was frustrated with somebody else. I was like, I just want to do it myself. So I don't have to worry about it. That's how all these businesses got developed. And so one piece of advice I give people is when you get frustrated with something, it's easy to just say, screw it. I don't want to think about it because you don't want to
Starting point is 01:48:08 experience that frustration, which is really just absolving yourself of solving the problem. Oh, just, I'll just lower my standard because it's too hard to get this problem fixed. If you can keep that standard, man, creative solutions will start to pop up in your mind. And there's someone like you that's kind of built like this empire where people can come to get knowledge about what they're doing. They can come to get supplements. They can get products that will help them to do it better was because you did, you said, if someone gets hurt, I'm not just gonna say, Oh, well, I can't work out. It's frustrating. I'm just going to drop my standard and not work out. Like, this is a thing that will help you maintain that standard. And now boom,
Starting point is 01:48:37 you've got a product that can solve. If we could get like everyone in America thinking that way, you would start to see a lot of momentum moving in positive directions. Yeah, you know, another word that I've worked on is the word frustrating. Try to change the word frustrating with being fascinated. That's good. So next time you're frustrated, just say, like, oh, this is fascinating how there's so much traffic here.
Starting point is 01:48:58 Look at this. Wow, this is really fascinating. I like that. That's really good. Where can people find you? All right. So on social media, I'm at DavidGreen24. There's an E at the end of green. My website is DavidGreen24.com.
Starting point is 01:49:13 And then if you go to BiggerPockets.com, you can message me through that website. If anyone has heard what I said and they're just like, this is cool, but I don't know if I want to jump into it, this would be the equivalent of showing up at the jiu-jitsu gym and just checking it out see if you like what's going on there just go to the website read all the articles see what resonates with you see if you like it or not and then you can figure out how deep into it you want to go this is 24 a kobe thing or what is it i wish i had a cool answer like that it's just 20 that was my basketball number in high school i and there was already david greens and i just had to pick a number and now I'm stuck with it at this point. Maybe if you could think of a better reason
Starting point is 01:49:48 I could give, like the Kobe thing sounds way better. That's what I was thinking. Mama mentality. Okay. Andrew, want to take a sign out of here, buddy? Sure thing. Thank you everybody for checking out today's episode.
Starting point is 01:49:59 If you dug it, please hit that like button on YouTube. And if you're on iTunes, please drop us a review. Let us know what you guys think down in the comments below as well. Please follow the podcast at MarkBowlesPowerProject on Instagram, at MBPowerProject on TikTok and Twitter. My Instagram and Twitter is at IamAndrewZ, at TheAndrewZ on TikTok.
Starting point is 01:50:16 And Seema, where you at? And Seema Eni on Instagram and YouTube, and Seema Yin Yang on TikTok and Twitter. Mark. I'm at MarkSmellyBell. Strength is never weakness. Weakness is never strength. Catch you guys later.

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