The Iced Coffee Hour - Meet The Real Estate Investor With 120 Tenants | Chandler David Smith

Episode Date: January 6, 2021

Today we're speaking with Chandler David Smith about real estate investing for beginners, how to make passive income, and how he makes $100,000 per month in rent - Enjoy! Click "SEE MORE" SUBSCRIBER TO CHANDLER: https://www.youtube.com/c/ChandlerDav... Chandler's Real Estate Investing Program - $100 Off with code 100OFF - https://www.chandlerdavidsmith.com/co... Add us on Instagram:  https://www.instagram.com/jlsselby https://www.instagram.com/gpstephan https://www.instagram.com/chandlerdav... ENDING SOON: Get 4 Free Stocks on Webull when you deposit $100 (WORTH UP TO $1600): https://tinyurl.com/yd9slfax Join the 2x weekly mentorship group: https://tinyurl.com/yaexko4o The Equipment used: https://tinyurl.com/y78py5g2 The YouTube Creator Academy:   Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF  For Podcast Inquiries, please contact [e-mail] *Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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What's going on, guys? Welcome to the 33rd ever episode of the iced coffee hour. So far, you have made $28,940. Fantastic. Amazing. Is that good? That is so good. Thank you.

Thank you. Thank you. Thank you. Thank you. I'm excited to be here. Yeah. How many rental properties do you own now? So 114 units of rental real estate and then a 73 unit storage complex.

Wow. Now, when you say units, how many properties is that? Like, if we break it down for property. It's a lot of duplexes and fourplexes, a 32plex, a 24plex, and 8plex. Yeah, I think it's like 11 fourplexes and four duplexes or something like that. At what point do you lose count? I think when I hit 100, I stopped counting property numbers. 100 units.

It's silly because it was one property to put me over that. But I like units because it sounds bigger. Wow. And how long did it take you to accumulate that many? It's been eight years. Eight years. Have you exponentially got more as the time has gone? Yeah, yeah.

Like first year, it probably can't even count because I, like, invested in a property and then pulled the money out and then got a condo and then a duplex and then a fourplex. And then it just got bigger and bigger every year. How did you do that? What were you doing before real estate? So it all came from door to door sales. Honestly, when I was 21 years old, I couldn't find a job. applied everywhere and somebody said hey come knock doors and sell pest control so i went out and in three months i ended up breaking the rookie record so i made 96 000 just knocking doors

selling past control was that kevin who did door knocking with you yeah it was i remember that video wow that was with you yeah meet kevin guys uh this was in idaho wasn't it so i was it originally he came to idaho to talk about it and look at my properties but then like six months later, we had him come out to San Diego and we knocked doors in San Diego. Selling pest control. Yep. Wow. Imagine that now. Imagine going online, finding out about your stimulus check and be like, wait a second. This is the guy. He tried to sell me pest control seven months ago. That's crazy. Okay. So you're doing door-to-door sales and then what happened. So you won the lottery. Yeah. And then you invested in real estate. You made $97,000 your first year doing that?

Yeah, just $96,000. And is that common in that? or is it like it actually is so our average guy makes between 25 and 30,000 dollars that's like where the average is but our top sales rep this year made over 300,000 dollars just selling past control door to door so door to door yeah wow so and that's just like still selling essentially the way that it works is if you're a good sales rep then you can manage a team so first year I just sold the next year I managed a team where I trained everyone how to do what I had done so that year I made $144,000. The next year I made just shy of $250,000 and then it's just kind of scaled. So now I manage over 300 sales reps. This year we actually did over $15 million in sales just

with my people in that four-month period. So you're still making money from selling Pesco? More and more every year. Wow. How do you, I feel like we have so many questions. I want to keep going on this. Do you have any positions open? Yes, always. www.elitummer sales.com. Wow. How do you train some of it? What makes them a good salesperson? Can you tell from meeting somebody if they're going to be good at sales?

You can tell to an extent. I tell everyone if you're going to be a good sales rep, it's a combination of being able to work hard, crazy hours, being able to handle rejection, and then being able to stay positive through the first two. Because a lot of people come out, they have the skill set, but then after getting 10 F bombs in a row, they're like, all right, this isn't for me.

So if you can stay positive through that, we train you on everything. So perverbales, nonverbal, verbal, verbal communication, body language, everything you can imagine, we show you what to say, how to say it. And if you put in the time, like, it's just that. You show up, it's a plug and play system. And if you do what we tell you, you're great sales rep. What sort of hours do you have to work to do that? So we start at 9 a.m.

We do 45 minutes of training in the morning. And then you work until dark with an hour break for lunch. So you do that Monday through Friday, Saturday you work until four, and then Sunday you have off. So are you an employee if you have to take an hour lunch and works for an hour? Your setup is a 1099. So you can do what you want to do. That works out great too because we've got a bunch more ride-offs. Right.

Wow. And this is based in Idaho Falls? So it's not really based there. We're nationwide. We're actually the eighth largest pest control company in the United States. And so this year I had sales reps in San Diego. Diego, in Houston, in Dallas, in San Antonio, in Nashville, and in Atlanta. That makes sense, because I figured if you guys were clearing $15 million in revenue,

I was like, everyone in Idaho Falls must have that. There's like 80,000 people in Idaho Falls. We don't even have an office there. We're just in the bigger cities. Got it. Why door to door? Why not online target these people, phones? Yeah.

It's a funny question. I think for me, I couldn't find another job, and I saw you could make good money doing that. However, I don't think anybody else is putting on the number of accounts that we are doing it door to door. If you've got a sales rep that's trained properly, you can just reach so many more people, and you've got a rep that's there to close them. And it's a decision where with the right push, people need it and they buy it.

And so, I mean, we, it's not broken, so, you know, why fix it? I think this year we did 20,000 accounts online. And we did, don't quote me on this, but like three or 400,000 accounts as a company. I make up about 9 to 10% of the whole company that I work for. So I'm one of 10 guys like me that manage groups of self-tracks. That's incredible. So within just what, how long has that been since starting?

Within 10 years, now you do 10% of their sales. Yeah. Yeah, it's, well, that's the thing is when I started, we only had 400 sales reps. Now we've got 2,500 to 3,000, depending on where we end up this next summer. Why couldn't you have taken equity in the company? I feel like at that level, they must have, had they offered you a percentage ownership? Yeah. Yeah.

So, and I don't, I guess we can share this, but we have something called L-TIP, and every account essentially gives you a portion of ownership. And we are planning on either going public or selling a portion of the company in the next five. years. I think our owner wants to hit a billion dollars before doing that. But with the amount of L-TIP points I have, if we're able to sell for a billion, I'll have a 10 to 15 million dollar payout from that L-tip. So that's something for the next couple of years. That's crazy. So why then real estate and then why then YouTube after that? Yeah. And also everyone, go ahead and subscribe to Chandler Smith. Okay, let's get him to 100,000 subscribers. That would be awesome. You're at 92 now.

right yeah i was hoping to get to 100 by the end of the year but i know there are 800 people watching this that are willing to subscribe we got taylor to uh 5k because i said in the video we get you to 5k we did that uh i think it's only fair we get you to 100 k if you're giving to 100 that would be awesome we could do that so just before you forget go down in the description go and subscribe like the video as well thank you so but if you're doing so well in this pest control thing. Why would you want to expand into other things? It's like Graham just put out a video saying that he doesn't want to buy real estate anymore because his time is so well spent doing YouTube. So why would you choose to go into these other fields?

Angel investing. It's a great question. One, it's fun to do other things. But I think the biggest reason is, you know, after I'd done a year, I made 96 grand. I didn't spend anything. I was very, very frugal early on. So I was living on, you know, maybe 10 grand. grand a year, if that. And I wanted to put it somewhere safe. So I reached out to a mentor, one of my buddies' dads that had done really well, and said, where should I put this? And he said real estate. So I started looking at bigger pockets, reading books, doing all of that. I looked at properties for a year and a half before I did anything. But really, it was because I now had this money and I didn't want to blow it. I wanted to find a good place for it. But once I got that first

deal and I was getting those checks every month, it was just addicting. Like, I want to wanted to build an empire. And so that turned into the condo and then the duplex and then duplex and fourplex. And what I found with real estate is it's really addicting to buy and see that money coming in, but it also is just another sell. And so when I could find a property that I could add value to and purchase it and immediately raise rents and now it's worth $20,000 more. And then the next one's $50,000. And, you know, this last year I bought a property that within three months of raising rents it was a million dollars more than what i bought it for and so it's just really addicting so that's where the real estate came in um when it comes to youtube it's you'll probably

laugh at me but i loved watching graham's channel like fan boy for sure early on but there was this sense of like i think at the time you had three or four rental properties and i had like 40 or No, might have been like, no, because I started, I think I had five. It must have been five. Maybe that's what it was. But when I really started watching you, I think I had 30 or 40 units. And I was like, look at this guy. Like people love him.

He's growing a YouTube channel. It's super cool. I've got like five times as many units as he does. I should do that. And I really liked what you did. It was inspiring to me. I learned a ton from it. And so that was originally why I wanted to do it.

But the other reason is I had so many sales reps and other people come. coming to me and saying, Chandler, will you mentor me? Will you show me? And I figured if I put it all on YouTube, then I could just say, hey, go watch these 10 videos, and then we can talk. But then after doing 10 videos, it's kind of addicting too. Yeah. So then I was just kind of hooked on trying to build that.

And they all work together. The YouTube channel has found me real estate deals, and it's found me power players for my sales organization. And so they all feed off of each other, you know, the more people that I can find to come work for me, the more my sales organization ticks, the more progress. properties that I can buy, and it just kind of all work together. So I just kind of scaled all of them. There's something else here now.

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Tell me about this place you made a million dollars on. Okay. What about that? So it's a 32 unit complex. Is that the one that took you over 100? It was. Okay. Yep.

And when I purchased the property, rents on every unit average $496. And I knew that those properties could be rented each unit at $8.50. Easy. Purely because I've done it a long. time. It was an old owner that hadn't raised rents in five or 10 years. It was off market. And so when I saw, I was like, holy crap, this is one of those deals that you just dream about. So we put it together, purchase the property for $2.2 million with rents at $496 on average for each unit. And they were

already within three months up to $8.50. Now, that is a little bit of an exaggeration because what I said is, if you stay, we'll do them for $800. If you leave, we're going to fill them at $8.50. And a big chunk of people left, big chunk of people stayed. But we had all the rents to either 800 or 850 within three months. So how did you find the deal? So I have become very connected in my area. Definitely not on the MLS. I think everybody hops on the MLS and they think that's where it's at.

I had a particular realtor that I followed up with consistently for like years because I knew he had a bunch of older owners that he had helped to purchase property. and he had been telling me for a long time, like I've got some of these, I think they're going to sell. And so just keeping that relationship forever, consistently following up so that years down the road when it did,

and I probably won't get into their backstory, but essentially some things happened where they needed to get rid of the property. And they hadn't added any value. They hadn't raised rents. They hadn't done any of that because they had the property paid off and they were cash flowing great

for what they had originally purchased it for. So I went in. I did overpay slightly. I think I bought it, like a six cap, six, seven caps somewhere in there for what their rents were. But I knew no doubt I could get them up. The only tricky part was the bank was a little hesitant because they didn't want to believe I could raise them so much. So I talked the seller into giving me ownership of three of the units, raising them to $8.50.

So the bank was chill with me then making the purchase and then we raised it. Yeah. How did you finance that? Was it just, did you have a partner on this deal? Was it just to you? It was all me. Okay. Yeah.

So 30% down on that one. commercial. Why couldn't you just buy it with just 30% down? That seems reasonable to me. What do you mean? The property. Couldn't I? Why show the bank that you would need to raise the rents?

Because the numbers were so tight that they were questioning my ability to have it be profitable. Does that make sense? Yeah. In Idaho, like out here they'd sell it. But in Idaho, they're requiring a certain amount of cash flow to lend on it, especially with how young I was. Now, granted, I built a really good relationship with the bank, but it was edging on their number that they're comfortable with

because it wasn't cash flowing very much. I think on the year, like maybe a couple thousand dollars a month in cash flow for a 32-unit complex at that price. So being able to go in and bump the value, it doesn't make sense that you can literally double the rents on a 32-unit complex. So once I get proved to them, hey, I did it with a couple of units. So then when I did it with all of them, the bank loved me.

And I bought another property, the 15plex this year from. Same thing, but this time I didn't have to argue with them at all. They're just like, all right. So what happened with the tenants? I bet you were not very popular with the tenants. Yeah. Yeah. For a long time.

This is why I love not managing my property. I have a management company that deals with all of that. But a strategy I've used that I think has been great is sending a letter that says, hey, we're new management, you know, obviously I think they put it together. Taxes are higher, expenses are higher, all of that. Rents for this property will be $850. However, if you choose to stay because we want to take care of you, they're going to be $800. Now, the people that live in these, these weren't ghetto properties.

These were nice properties. Everyone in there knew they were getting a steal. They also know that if they go to look for somewhere else to rent, they're not going to find anything for cheaper than that $800. And if they do, it's going to be divier than what they were. living in. So does it suck for them? Yes. But a lot of these people had been there forever, knowing that they were on a cash cow themselves. And so, yeah, like, we got kickback for sure, but people were on a month-to-month lease. Every, whoops. Every one of them was month-a-month. So when

we did it, it wasn't like we were, you know, ruining their lease or making them leave early or doing anything sketchy. It was just, hey, this is what they're going to be. If you want to go, go. If you want to stay, we'll give you a discount. That's the issue with L.A. rent control in California, why it's so difficult is because there are so many properties exactly like that in California that you can't raise the rent more than 3% every year. So the owner just screwed themselves there. But then you also can't get rid of the tenants without just cause. And just because you don't want them there, the rents low, you can't kick them out either. So you're kind of stuck with this. So that's what I've, the issue that I've dealt with with my rentals,

I raised the rents maximum every single year in all my properties, but I give the tenant a credit it back so that for them they said they have the same thing over the year but for me i get to show that at least i'm raising rent so that if something were to happen and if i were to sell uh then technically they are paying market rent totally well and i think that's what i love about the area that i invest and obviously there are pros and cons of everywhere but if you look and i don't want to share my secrets and everyone flood to idaho but we've had just as good of appreciation as California has. As a matter of fact, we've been top five states the last couple years. And so when you've got a place that's getting the appreciation, property values are going up,

but also you can do whatever you want with the rents. Rents have exploded. Everything has exploded. So buying real estate there, not only are you getting much beefier cash flow, but now you've got this huge value ad and appreciation that's happening naturally. Yeah. Have you had tenants in there not pay their rent? Yeah. I mean, I think everybody deals with that. But overall, no. I don't know if you've seen this video. I had one really gnarly eviction. I love that video.

Jack, put a B-roll of this. There's a guy sitting on a chair with his girl in the lap, and they're getting evicted. And it was a wild video. Was this Kevin's video? No. It was Kevin's. But Kevin reacted to it, didn't you?

So what happened, I invited Kevin to go out with our sales guys to Puerto Rico, and I showed it to him because I had filmed it, and it was sketch. but I have confrontation all the time on the door so I was like let's just go see we knew we were evicting them that week I wanted to try and talk them out of it so we didn't have to pay to have them like taken out of the property

which we ended up having to do anyways so I just thought maybe I could sweet talk them maybe I could bribe them maybe I could figure something to just get them out and I was a YouTuber at that point so I figured we'd see what would happen I won't do anything like this again because it was sketch and what happened is I went

I got them super calm down I said, look, maybe there's been some miscommunication with my management company. I'm the owner. I just want to make sure we're taking care of you. Would you mind coming out, sitting down? I want to interview you and just learn from the experience. And so he's like, yeah, I can do that, but I don't want to throw your management company under the bus. Like, he had a good relationship.

He just didn't want to pay rent and he was on drugs. So I talked him into coming out. We sit down. We start super calm. And then things just get crazy. I don't know if the drugs kicked in. Remind us what happens. because I remember watching this episode

Start to finish, loving it. I mean, it was like a Jerry Springer episode, Real Estate Edition. And I thought, like, I remember thinking to myself, like, you're crazy for doing this. Like, this guy could have pulled out, like, a knife, or, like, just straight up, just gotten up. And he's a big guy. Yeah.

And, like, just could have pummeled you or just... And then just the dynamic between him and the girl. Have you seen this? No, I haven't. Put B-roll up here. I'm dying to watch this now. As we're talking about it, but he's got this girl on his lap who's just like, just agreeing with everything he has to say, like backing him up, she's like on his lap.

Like this is the middle school stuff. Like you don't see adults doing this. This is what they do in middle school. Did you have any backup? So I just had my videographer. Here's the deal. With door to door sales, I have people pull guns. I have people chase you down.

Like we deal with lots of stuff and we get really good at calming people down. And so I wasn't that sketch, but it got. to the point where my videographer, he'd never been in a situation like that. And when I looked up and he was shaking and his face was wide, I was like, all right, we got to wrap this up because I could tell. And it got pretty tense there at the end. Tell people who aren't going to watch the video. Just to describe what happened.

So essentially, the girlfriend was ready to say, look, we know we haven't paid rent. He was accusing us of a bunch of damage to the property. Like, you sold me a garbage property. They walked to the property. All the windows had been broken by them. It had been flooded by them. They were on drugs. So it was just a terrible situation.

They totally trashed it. If you watch my other video, you can see how terrible the property was. It was just a bad tenant. I mean, one out of every hundred every couple of years, you get a bad tenant. And this one, I think our screening has gotten better since then. It was bad. But essentially, he gets fired up. I don't know what happened.

And he was trying to talk me into letting him stay and fix all the damage in the property that he had caused. and so that we could be good and live there for free. But then I asked him, are you trying to get free rent? And he's like, no, I want to fix this for you. Oh, you remember. Yeah, I remember that. It just didn't make any sense. He was just on drugs.

So what happened, though, is I bring it back. I show my wife, I'm hyped because I'm like, man, everybody on YouTube is going to love this. Yeah, they did. And she's like, you're not posting that. That's not you. This is like, it definitely came off wrong for me to film it and post it. So I let months go by, like not going to do anything like.

Did it? I didn't think it was that wrong. But then again, I'm a landlord. Yeah, so tell me. I think me, if I would have posted it, I think it wouldn't have come off right. But when I'm in Puerto Rico with Kevin, I show him and he's like, dude, Kevin's a lot. You do not want to listen to Kevin on that. He's like, you got to freaking post it.

Of course. I was just like, man, I don't know that I want to. What if you post it and just critique me? You can have the footage. You can do what you want with it. So he posted it. and he was brutally honest with it. Like he said Chandler should have done this different.

And so then I'm like, Kevin, Kevin was, it was a good video. It was critique. It was good. I feel like I did a good job. He picked out some things I could have done better. And so then I responded to it. And then people wanted to see the whole video. So then I posted it anyways.

But it was good because it was more of a learning experience. So Kevin doing that made it good to share. Good for Kevin. Yeah. But in future, don't listen to. Yeah, every time says, post something.

Well, if he wants to post it, I was good with it. Next thing you know, you're being sued by that nameless entity here's the deal. Kevin, for me,

has been a game changer for my channel. I don't know why when I had no subscribers. He was willing to fly out. Look at my portfolio. He's giving me tons of advice.

Yeah. You know, he's the best of the best. He is. So it, no negative things to say about Kevin. a freaking man.

Okay. Let's say one negative thing about Kevin. One negative thing. Maybe we gotta all say one bad thing about Kevin. What would be? He needs to sleep more. He's like, it's unhealthy.

How much is he sleep? I thought he's sleeping enough. So when we were in Puerto Rico, we would get up at seven. We would go and play till midnight. And then we'd hang out and talk till two. And then Kevin would go and edit for three hours. He'd get two hours of sleep and did that every day.

Yeah. Okay. So, but I have always thought that those like short-term things like him and i would take these trips and yeah he'd be we'd be up until one or two and then we'd go to bed but he'd be up at like 5 30 going on a run yeah and then he would come back with with a coffee at like 630 in the morning right guy live this that's off the time go i was like wow but that's how he gets so much done he drinks so much coffee and doesn't get a lot of sleep and there's no way you can post five videos a day and be getting the right amount of sleep and having two

kids and a wife and everything else he's got going on. I really want to see behind the scenes of what he does. Like, I, the brutal honest truth for, like, his life, I'm not saying he does anything, but, like, how he structures his day and, like, what that's really like for him. Yeah. I would, I would love to, I could, I think of the same thing of you. I get dibs, huh, no, maybe, but I get dibs on, on that video idea. That would be safe.

If anyone wants, like, I would love to do a full day in life, actually of Kevin. You have to fall in for, like, a week, too, to get a real. real perspective. I think the thing that's crazy about Kevin is I work with hundreds of sales reps, and I feel like, and I mean, I'm sure you feel the same way, but you're pretty confident you can outwork most people. And being around Kevin, anytime I've done videos, anytime I've done anything with him, I feel outworked.

Oh yeah, I can't outwork around. And it's just like he's nuts. Yeah. But yeah, no, with Kevin, I know I can't outwork him. And I realize, too, with him, if he sees someone else doing something, he's got a personal thing to go and do better. Yeah, always.

He'll see someone and he'll be like, all right, I'm going to find out. And I know he's going to do it. Yeah. Because he's got this determination where he's not going to quit until he does. And he's just the amount of time he puts it. Like, I can't compete anymore. Like, I've just given him the win on that. Like, Kevin, you win.

You win. Well, I think I remember you, and I can't say this is exact. But when you blew up and I think, I don't know the timing, but you had this period where you were, killing it above anyone else in the finance space. And I feel like it was very much, hold my beer and he drinks up to five videos a week. Yep, or a day.

It's incredible. Yeah, no, he's, I've calculated, because I watch everyone's statistics on YouTube, like everybody, and he's going to outpace me in views in about 40 days or so, maybe 45 days. You've done the map. Yeah.

And that's him on the main channel, his channel, all three of my changes. Seriously. That's insane. Because of how much she's churning out, I've accepted that. And you've got podcasts that are

hour and a half long. Yeah, I know. I've accepted that. So, Kevin, you win. He is a man. For now. For now. Pretty soon he's going to take my girlfriend,

take that out. I don't think that would go over with one. He'll take Ramsey. Take Bailey. Kevin, you can take that house. I'm kidding. It's all in good fun. I think it's just a healthy competition, I think, between me and Kevin.

Well, it has to be cool with the time of you guys. I know being around Kevin raised my vision a ton. I'm sure you felt the same way. It's cool to be around people like that because it makes you think different and it's a good thing. Definitely. But let's go back to you. I want to know a little bit more about your first investment properties. Did you pay cash for your first rental?

So it's funny because my real first investment property is. I had all this money in the bank and I gave someone a loan. They had crappy credit. They had 25% to put down on a property that I knew they'd gotten under market value. And so I loaned them, I think it was $90,000 at a 9.5% interest rate. And if they didn't refinance within, it was either a year and a half or two years, the interest rate bumped 2% every year. So they refinanced out within two years and I got all that money back.

So that was the first real investment that I had done. After doing that, I think it was a year after I bought a condo for $70,000 in cash. That was the only other property I bought cash. And that was my biggest mistake. It was a good investment property. But from then on out, I am super anti-cash. Did you ever pull the equity out? Or did you?

Yeah. So actually 1031 that. I think I sold it for like 150 a couple years later and then moved that into one of the fourplexes that I bought. So after that, I bought a duplex. And then I kind of went Ham in one. year I bought that duplex, a duplex and a fourplex. And then the next year I bought an eightplex and I think a couple fourplexes. And then it just kind of went up from there. My first big one was

that eightplex. And then I did a 24plex, which was a big jump. Why are you doing multi-unit housing? Why not single family homes? Um, scalability. And here's the thing. People stay away from the bigger stuff because of financing. Like 30 year fixed, lower down payment. All of that stuff is incredible. And so when you're starting that barrier to entry, it's awesome when you can get great rates, great terms. But when you can scale and you see it's a value out of opportunity, then you've got 24 units that you can raise rents on. You can increase the value crazy. And I was making a lot of cash. I got in a point where I couldn't find enough single family or duplex or duplex or even fourplexes to keep up with the money that I had coming in.

And so I had to look elsewhere. The 24plex fell into my lap because it was a seller finance deal. So that was really nice because then I could get it for a lower down. I could get it on a 20 year fixed at pretty decent interest rates and still acquire, you know, a big chunk of real estate with pretty decent financing. How do you find the time for that stuff? It's a great question. I was talking to Jack before.

I'm like pretty overwhelmed with everything I've got going on. We have 550 sales reps that are signed to work for me this upcoming year. The rentals, I think the biggest thing is that I have a management company. So when purchasing rental properties, I have a bunch of relationships that are feeding me deals. But I only put in a lot of time when it's like due diligence, jump on the properties. And I've got my people trained to where they only bring me deals if they're good deals. So I'm only analyzing the deals that are pretty decent. So I don't spend a ton of time doing that.

And then once I get them under contract, I throw them over to my management company and I don't do anything. I probably spend one to two hours a month just looking at the rents and making sure that everything looks right when they come in every month. So do they do the remodeling and everything? Uh-huh. They do. They didn't always.

But the guy that manages all my properties, he just does my properties and then just a couple others. And he knows where I'm at. He knows what he can spend money on. he knows all of that. Now, I saw some checks and balances that I look over every month, but he's incredible. And a lot of the renovations I do, I'm not, like your renovation, you did, I would never touch a renovation like that.

I know. When I do a renovation. Didn't you make a video on that? I think I'm pretty sure you did. You made a video on it. Yeah. I think you did. Maybe.

I know I thought about it for sure. It was either you. I know Kevin made a video on it. Let me see. Because I remember seeing a video. I feel like on that. I told Kevin to make a video on that because I don't, I've tried to never dig on you super hard.

Let's see. I've like gone through. This is on your renovation gram? Yeah. I thought maybe it was you, uh, maybe not. There's someone who made a video telling you that they would do a lot of the renovation,

which I agreed with, with them for the market. They were coming from a different market. I'm like, yeah, in any other than L.A. would agree with them. Yeah. Well, and the thing is, for me, it's all about the niche you pick, right?

I mean, that was an overwhelming renovation you did, and you kept finding more and more and more. With my renovations, I make sure that I know going in. It's floors, it's paint, it's lighting, and maybe cabinet stuff. But it's all those little fixes. So I'm throwing five grand a unit, if that. And it's good to roll. And so he knows, all right, this is what we're going to change. This is what we can salvage.

He's super thrifty, super smart. So that it's gotten to the point where he'll call and say, hey, I'm doing this renovation. this is what it's going to cost, this is what rents will be too, and we're good to go. Are you ever nervous that he's going to go and do this on his own? Not necessarily because he has, right? But he's making six figures because of what he makes off of my properties. And even if he does it on his own, he's still going to be managing them on his own.

And he's like anybody, he wants to scale. If he could have 1,000 units to manage, he would want that. Now, when it gets to that point, do I have concerns that maybe the quality, of the way my properties are taken care of will go down. Yeah, but I've also built a relationship where I try to really take care of him and it's advantageous to both of us. He manages other properties and a couple of those are his because he's gotten the money to fall the same model. And what about your home living situation while you were buying all these investment properties? Did you ever house hack? Were you living in like duplexes or did you just like all of a sudden

start making a bunch of money and then buy a really nice home? So that's my biggest mistake looking back. I just rented for a long time. You know, the first couple years I was even married, we were just renting a place. And the reason for it is the school that I went to required you to use their housing when I was single. I know that sounds dumb, but it's BYU, Idaho, and they've got a weird thing there. So I couldn't buy a home and live in it and attend that university. So you were attending university while selling pest control and everything and making all that money? Yeah.

Did you, and you graduated? No. Yeah, there we go, Jack. That's the right choice. The right choice. I have seven credits left to get my accounting degree, but... Go back right now, man. It's four, they make you do an internship.

And I didn't want to lie. I've had account and say, dude, we'll just check you off. But what's the point of getting a degree when you just cheated on it and you don't need it anyways? Yeah, yeah. It didn't make sense to me. So I could still go and finish, but I'm not going. to. Was it difficult?

I was going to make a video about this. I haven't like 100% all in, but it's, yeah, I haven't been taking classes. Was it difficult to drop out? Yeah, just because it's a cultural thing and your whole life, that's something you need to check off. Like, it's a guilt thing. And so I still have, and this is the reality. In my job, I was making, you know, my net worth was in the millions.

I would sell people come and be like, hey, so are you going to finish school? and that was their most important question to ask me. It wasn't about anything else. It was about school. So I'm over that now, but that's why I hung on so long. When did you quit renting from the student housing? So once I got married, the way that it works is then you can get your own housing. But we had a bunch of friends that I did the door to ourselves job with.

So we rented an apartment where all of us and our wives lived in the same place. So it was super fun. Rent was super cheap. At that point, we were buying rental properties. I think I had like 15, 20 units by that point. But we were paying 700 bucks a month and rent, just living close to our friends. Then we bought a house that I did all kinds of funky stuff with. I did like a lease to own. And then I sold it. Made a ton of money on that. And then moved into what we're living in now. So we bought a house for $420,000 years ago. Nice. Yeah. And you are buying a new house or building a new house. We heard you gave us a little taste of what it is before the podcast. We had to stop you so we could get more information while we're live on the podcast.

Tell us a little about a bit about the home you're building. So I feel like everybody's going to think I kind of lost my shiz this year because I bought two cars from the Stradman and we bought the 15plex and we're building our dream home. The home is focused on my business. So 8,000 square feet of it is home space. The rest is a basketball court, a big locker room poker area, a indoor swimming pool. It's just kind of like... Is that for tax reasons?

You could designate a we got... Play for the employees. You told me it's 18,000 square feet total, guys. So 10,000, over half of the home is going to be business use, basically. Yeah. Well, and the thing is, is I spend a ton of money. Like this month, I rented a place for, I think we paid like four or five grand

to bring all of my leadership, all of these talented sales reps out to do stuff with. And now I can do my house. Like it's set up to be able to have 50 plus guys come and not just come, but like have a freaking blast at the house. So it worked well for what we were wanting to do. But yeah, for taxes, we're going to work some things for sure. And you're building that place? Uh-huh. Yeah.

Here's the crazy thing. And hopefully you're okay with me. Tell me. Listen, tell me. Square footage on this house. What is it? About 2,300. Okay, lot size.

8,500. So my house is on four acres. It'll be 18,000 square feet, and it'll cost less than this. We'll be under 2.2 million. Built. How? How much is land? We got to go to Idaho.

Yeah. We've got to go to Idaho. I'm calculating. I'm calculating. I'm calculating to build 18,000 square feet. I'm guessing that's got to be about $200 a square foot on the low end to build that. I'm going to guess this is $350 a square foot. So much is basement space.

Okay. Can you really count that as square footage, though, technically? Yeah, I mean, it's space. The thing is, and I don't know if you do basements out here, but basements are cheap. Like, you can do nice. We don't have basements. I'll show you the finishes, but nice basement at like 85, 95, 95 a square foot. So you save a ton of money.

You've also got a basketball court, which is a bunch of dead space. You've got a pool, which we did a fiberglass pool, which is super cool, which was pretty inexpensive, and then just the space on that. So, yeah, I'm calculating like $18,000, even at $100 a square foot is going to put you at $1.8. $100 a square foot plus land, I'm guessing, has to be $400. So $400. Now we're at $22,000 without any care. carrying costs or anything.

How is it less? How is it less than this? So what do you mean? How is, like, I think we'll be right at. Two, two, one, two, two. You see $100 a square foot. That seems too cheap. That seems too cheap.

Yeah, I, I think, how do you... It's so much, like he said, it's basement. It's dead space, yeah. And like, you, like, I can show you the bid on everything if you guys want to see it. But even the basketball court, I'm thinking, like, okay, sure, we're not putting, like,

bathrooms and stuff like that. But still, I'm guessing, like, the foundation of The roof, that that's got to be, I don't know, 50 grand, 60 grand on that. Yeah. Building is so much cheaper there, though. I mean, even we're still doing new build homes that are 4,000 square feet. Like my brother just purchased one. I think he paid, well, like between 3 and 350 for his 4,000 square foot.

New build home. So it, I mean, yeah, it is what it is. I think the only thing you got to remember, that is including garage space. Okay. which is also extremely cheap. Okay. And in the garage space, I've got room, I think. Do you want to see the house plans?

Yeah, I do. Okay. These are the garages, and the total square footage in the garage is 2,1002. So 18,000 square feet. I mean, really, you're, okay. You're like, technically you're less than that because the other thing, and again, the 18,000 square feet sounds cool. But under this two-car garage, we also did basement, but it's not necessarily finished.

It's just framed in for storage. So that's another probably 1,000 square feet here. Under here we also did it, but we're putting in a locker room for the guys to go to both. Could you screenshot whenever you're comfortable? Yeah, yeah. So, and I've done videos on all of it. All right, so 18,000 square feet,

but a lot of it isn't necessarily house. Yeah, I mean, you've got a lot of garage. How much? So garages alone are, we look, 2,100. You've got another 1,000 in the locker room, which is pretty simple space. another thousand just in storage area and then the basketball court is 52 feet by 30 something feet

so I do have a very important question yeah are you extending an invitation always to your playhouse yeah definitely you guys come over oh we got so many invitations we'll have to do you see grants place yeah grant navarre expected what's up brand next week or something two weeks two weeks Yeah.

It's going to be crazy. It looks like a manor. Really? His place looks like you, like you've seen in haunted house movies, where you go in there's like a big mansion at the top of the hill that you, like, don't want to spend the night in. It looks like that. It's that,

it's massive. Well, here's the thing I've come to find when we were building is you've got the $1 per square foot that you use for rental properties. Then you've got the $4 per square foot that people use for like higher end spec homes, and maybe even a little bit of that. But then you've got $10 per square foot for the stuff they're bringing in. from Europe and all of that.

Like, we don't like that stuff. We like the, you know, mix between modern and contemporary look. And if you stay in that and you don't spend on the lavish, absurd stuff, you can get a ton of space that's a really nice, super quality. But then I see people that are dropping, you know, crazy money just on the fixtures, like the gold fixtures or, I mean, you can go from paying $4 for one of those to $60 for one of those. And I think that's where on the higher-end homes, people go nuts. Now, we're not doing cheap, but I don't think that's necessary for what we're using it for.

Does that make sense? Yeah. So you're doing all of this in a year, though. So you bought Stradman's Ferrari, the 458, and then you bought his Corvette. What else are you going to buy from him? Did you try to buy anything else? No, here's the thing. I was going to talk to you about this.

So with the cars, they're kind of unique. I got into a situation where I had a lot of cash flow that we'd been saving up for the home from the properties. And my goal has always been to live within my cash flow. So super frugal early on, but then when I started buying these bigger properties, I was having a lot of cash flow come in. And it was kind of building up

because it took us while to get to purchasing our home. So we had that money. However, after purchasing the C8 Corvette and I had launched my course, I saw how many people that brought over and I really wanted to buy another supercar. It helped my channel. It helped my sales business.

I let all my guys drive it. Like it was a cool, fun thing. And so I reached out to the Stradman and was like, hey, I think I want to buy another one. What do you think? And the Ferrari 458 was one of the cars that I wanted. Well, he goes and buys it. So when he buys it, I'm like, dude, you bought the car I really want.

Would you ever sell that one to me as well? And he had different plans for it. So he said, I'll let you know if I do. well he reaches back out and says a month later I'm going to sell it do you want it and I wanted it but I was also you know I'd spent a lot of money through that portion I was kind of hesitant the C8 was the first car I bought so I kind of pitched it like I'll buy it at the price you bought it and you've already put 3,000 miles on but would you be willing to pitch my real estate investing course because I'd done pretty well on that course and he agreed to it he checked out the course looked through it he was happy to with it and he said let's do it so by purchasing the Ferrari yes I could afford it but then I essentially got it for free because of what we made after that's really smart did you make a video have you ever made a video about how you got the Ferrari for free no I feel like you're milking all this out of me because I was hesitant to share course sales I don't I love the course I feel like it

brings huge value yeah but I've always given everything away for free and I've tried you know what I mean like it was uncomfortable to be like this is how much I made Guys, I'm going to link it down below. So now you have to explain it. So I'll link it down below, but in return, you have to show how much money it's making, because I'm curious. Okay. So up to this point, I've made $215,000 off of the course,

and the majority of that came in after the Ferrari purchase. So yeah, it's done really well. I think the other thing that is cool about the Ferrari purchase, and this is something the Stradman taught me, but because I have, that's my fifth vehicle, I only use it for YouTube. Like, that's it. I'm always recording when I use it.

So that particular car I can ride off as a prop. Oh, yeah, of course. Which means I can ride off the entire car year one. Stradman has been trying to talk me and do a four GT. And I really need a cool car to park in that garage space in Las Vegas. Because there is going to be a car. Did you watch my house tour video? Yeah, I did.

Okay, so that you had that garage space in the office. in the office. It won't be as cool as Stradman's car on the wall, but it'll be pretty free. I know. But I was thinking the Ford GT would be a car. And this would be... Would you get older one or like newer?

2005, 2006. That's so cool. Let me know what you guys think. This is the first time I've ever brought it up. My fear is being a guru that I'm this guy. I always talks about being so frugal. And I'm still using those towels over the lights instead of diffusers, still doing everything on my own.

Same camera. I bought a used camera on eBay, and that's like for the Vegas place. And then you have this expensive car in the background, so I don't know if it would be too hypocritical to do something like that. Well, this is one of the things that is really difficult, and I think we've both been in the situation, and I've kind of made the jump off the cliff,

where I've been frugal my whole life. I've been very smart. That's how I was able to purchase the real estate I was. But when you set a goal, and you say, hey, you know, if I'm passive income can afford it, and your active income gets to a point where you're making a ton there too. Like, what's the point of money if you're not going to spend it? And we're both in businesses where cars do move the needle.

And for you, it might be different because you're branded as the frugal guy, but it's opened a ton of doors for me and my sales business. And that's a different thing for me. But when they can take the C8, like we'll go to activities and I'll have 50 guys go and test drive the C8. Like that's huge because they're sharing it on Instagram. They're sharing it with their friends. That's a great opportunity for me to find good leaders, good sales reps, other good things. So with that, with YouTube, with everything else for me, I felt like it definitely made sense.

But only because I also really wanted one of those cars. Yeah. I don't know. I feel for me it would almost work against me to do something like that. Because then I'm the guy I changed. Then I'm the guy makes a whole bunch of money and then starts nice places in Vegas and a car and stuff like that. We already did the nice place in Vegas. It's cheaper.

You didn't really get any backlash from that either, did you? But that's cheap. That's because it's cheaper than this and because of how much money that's saved. The car is something that will hold its value, will go up. I'm guessing it'll go up about 5% a year. But then I'm tying up all this money in a car that could be invested or doing something else. Yeah. It's diversification.

You've got to invest in the cost. I don't, and it's hard. And it's funny. This is a video I did make because I feel like for sure you're a little pinned. Like your main income is YouTube and you branded yourself in a certain way. And it's hard to work around that. But at the same time, people follow you because you're relatable. But I think people are hoping that the principles you teach them will help them to acquire their dreams.

Maybe I'm wrong. but I don't think they want to be 60 years old and have none of the things that they've envisioned or wanted their whole life by taking place. Am I wrong in saying that? I mean, you could ask the viewers, comment down below and you know you think. But I think it's kind of funny to be that like that one day

be that like old guy who's constantly like with all the money in the bag and be like, oh, you don't spend money in the car. What are you doing? Like I find that funny. Like my, I love this. my buddy Brandon's grandpa was like 103 years old, completely self-made,

and he must have had like $200 million with the real estate on Beverly Boulevard in Los Angeles right by the Beverly Center. This is like prime real estate. He owned the entire block that he just accumulated over decade after decade after decade.

And he would sit there. And I love this. Brandon said he was the cheapest guy in the world. I'm not advocating doing this, but when you'd go to the restaurants, he would take like the salt and pepper little packets and stuff them and take them home because he just he always wanted to get a deal and he always wanted to feel like if he's going out to restaurants spending money he wants to get something back for that but apparently

you really want to be that guy though but i think it's funny the story continues but apparently it got so bad that uh his daughter so brandon's mom would have to check his pockets before they left because he would take the silverware. Because he just... He would take the silverware? Yes, because I know. I'm not advocating this. I thought it's funny.

I thought it was funny. But his mentality was that I'm overspending on this food here. It's too expensive. So if I take something back, then it's even. And this guy was worth hundreds of millions of dollars. And the best part of all of this is he would still go into his office every single day. Even though he didn't need the money, for no reason all, if you would go to his eye, he would like to be in the office every day.

and he put his office right next to the vending machine. And his favorite time of the day was when someone would put in a dollar in the vending machine. They get a soda immediately, as the person that you go out with a key, open up the vending machine, take the dollar. Put it in its wallet and sit down. That was he loved it. I just think it's funny. Like, I look at that. I think it's hilarious.

You ever heard of the Scrooge? Yes. Yeah. Was it that guy? Kind of. But, you know, I just thought it was funny. And like, I've always related to that in some way or another. Just like, oh, taking the dollar, get the dollar.

Like, I just hear about that. No, totally. And I have too. I think a lot of people that are successful can relate to that. The thing I recognized is, and this can be turned back on you too, but the way you do anything is the way you do everything. And I really wanted to have or evolve to the mindset of there's enough to go around. Yeah.

And making this transition, it's interesting because it's helped me treat my employees better. It's helped me take care of my people better. Like when you make that shift that their money is always going to be coming in, I feel like, yeah, it's helped me to get more things and those things have motivated me, but it's helped me to share those things more too. Yeah. And people like that, I've very rarely seen them be generous people. Am I wrong in saying that?

Yeah, no. You're right on that. And so I think they go hand in hand. And I'll tell you, my favorite part. about the C8 Corvette is when I toss the keys to a guy and I'm like go do whatever you want with it. And obviously I hope no one ever crashes it. But if they scrape it, if they do whatever, like that's why I got the car is to give people that experience to help them get that vision to help them see like, holy cow, I love cars. I love this.

I know you love cars. And having something that you can work towards and you do it the right way by creating passive income first so you're motivated to do that. I feel like that's huge. It's a big motivator. Yeah. Oh, good. I mean, I don't disagree with that. I don't disagree with that at all.

I guess my biggest concern is being that guy who made money and then started spending it on frivolous stuff. Yeah, well, and I will be the first one to say. I have struggled. You can look at my Instagram. My brother gives me a hard time about it. When you get a car, people love cool cars. And then it's hard to not include them in your videos

because you instantly turn into Ty Lopez because people, there's this big majority of people that want to see it and they want to experience it and that's really fun but then i've done some videos from like oh that isn't that isn't the direction i want to go so i see that being a bad thing too i don't know i look up to people like dave rams and i'm like what would dave ramsie do and he's mentioned before that he has a few cars in a six figure mark we've never seen him ever talk about one of like which cars he has or driving his cars or so i look at that and i'm like that's a good example of kind of where where to go.

Look at Dave Ramsey. What is he doing? It's respectable. So maybe, I don't know. I don't know. I'm torn. See, if I had to pick idols, he wouldn't make top 10 for sure.

Oh, for me, for me, Dave Ramsey would be top three. Other than Dave Ramsey, who would be yours? Joe Rogan. Dr. Phil. Josh, Judge Judy. I love all those guys. Yeah, I love Dr. Phil.

I really do. I look at his career. Joe Rogan, I think, is the coolest of all of them. Judge Judy's had one of the best careers. Dr. Phil, I love his platform. Dave Ramsey, I like his just, he's very grounded. Yeah.

So it's really just good core principles, sticks with them, doesn't waver. Yeah. Yeah. I like, you know what, I like and really respect with Dave Ramsey that he doesn't waver. That he has his way. That's it. He's never changed his course. He's very convicted of one thing.

And that's what works for him. Yeah. See, it's interesting because I've got all these people that I love learning the way they invest. I love the way that they view money. But I don't think any of them would make that for me. I think for me it's like my dad, my grandpa, all the people in the way that they raise their family and the way that they taught their kids. And I think that is an evolution just because I have kids now where it's like, man, that is most important to me is the way my kids view me. But it's hard. How did things change with kids? Um How old are you now? So I'm, I just turned 30 Wow, we're the same age Yeah

How old are your kids? So three and one I can't imagine having a kid I can't Like that seems So like Bailey has been It may see's the one Who deals with Bailey

But has been a Like there's a puppy And then I can't imagine Like that times 50 Or whatever I don't know Yeah

Well I think it just changes Everything Because everything I'm due everything I do your kids are watching and that's affecting who they're becoming so I don't know that's what like I love what I've done on the financial side of things but the end of the day how they turn out is more important than anything else and the only people that I follow their role models because they've had that impact on me you know so I know I think the biggest difference is just your time I never have a minute in the day where I'm not thinking all right

this has got to be good because it could be time with my kids. Does that make sense? Yeah. So. Okay. Yeah. Oh. That's right.

Speaking of Dave Ramsey, I am so curious. How much debt do you have? Um, a good amount. I think like seven or eight million. I got it already on a spreadsheet. So we could talk about it. That's not as bad as what I thought, though. I thought it was going to be a way higher.

You're going to record Graham, Stefan, React. to my investment portfolio. Yes. If you guys want to see that, that will be on your channel. It will. We'll link down below. Link down below in the description.

Yeah. All right. Okay. Well, and it's interesting because when you buy real estate over a period of time and all these properties, I'm putting 25 to 30% down, when their value add properties,

you're adding a bunch of equity into the properties really quickly. So the debt isn't nearly as scary compared to what you owe because you've been paying them off for one, but you also have added value by increasing rents. Amazon presents Jeff versus Taco Truck Salsa,

whether it's Verde, Roja, or the orange one. For Jeff, trying any salsa is like playing Russian roulette with a flamethrower. Luckily, Jeff saved with Amazon and stocked up on antacids, ginger tea, and milk. Habaniero? More like habanier, yes. Save the everyday with Amazon. So, hmm.

Jeez, that sounds scary, though. Seven, eight million? No, it's, sorry, I blanked out for a second. My mind is coming somewhere else. Sorry, cut that out, Jack. I was calculating something in my, totally unrelated to anything. Now, going back to the debt,

so, Jack, just say, seven million seems like a lot. Seven million seems like a lot. Yeah, it is, but at the same time, I've got so much. equity in those properties that it isn't yeah what's the total worth on that so when i 14 yeah i think i'm like 13 14 million in properties so about 50 it's not that's not that bad mine i total debt with it i think mine is four um and the properties i think are worth eight and a half something like that nine

so it's less than 50 percent so i don't i don't think your debt's bad at all for what for what you own No, especially, I mean, I always keep six months reserves minimum. And a lot of times I'm pushing a year on that. So, like, what's the worst that can happen? Like, even if something terrible happens, you lower rents and you're still cash filling, you're still able to pay your mortgage. So I think people just stress on debt way too much. That's a big reason I'm not a Dave Ramsey fan is I feel like that's an incredible tool used properly.

I also understand why when people use it incorrectly, it can really bite them in the I want to know what your total debt payment is every month. My guess is 7 mil. You're probably paying about $34,000 a month, I'm going to guess. You're good. Yeah, I think when I did the math, it's like 37. Oh, I'm close.

That's right. I was going to say, 37. Yeah. So it's good. And with those numbers, I didn't include the storage units. Well, actually, no, I think I did. How much is a storage unit make? So we're still figuring that out.

But I think we'll have probably like 12% cash on cash once we get the numbers where they should be. When we bought it, I think it was only like an eight or nine because we've got some work to do on getting them up. But again, old owner hadn't raised rents in forever. A lot of value-out opportunity. Those are the deals I love. When I see them, I know I don't really have to do a lot of work, but I know they're

way undervalued because older owners have them forever and just hasn't raised rents. And what's your goal with all of this? How many units are you trying to buy? Do you have any plan? If I'm honest, I hit like a weird point because it was always 100 units was this thing where I thought I'd have all the cash flow in the world. It's become addicting. I love finding good deals. I love negotiating them.

I love to do diligence on them. That is the one thing that's never felt like work. Like finding and buying real estate is just a passion. It's fun. It's a hobby. My wife makes fun of me because Excel is my hangout. I like running the numbers on properties. So I've let off the gas a little bit because we had a big year.

I'm sure I'll always buy property. I'm trying to figure out what my next goal is. If I want to say I'm going to do 1,000 units or... Why not do stocks? I've been doing stocks this year. It's been so much more relaxing. So it's so funny. I went over to Kevin's place today for like two or three hours.

And he's definitely on that stock train for sure. I think I've spent so much time getting good at real estate that, again, it's a hobby. Even if you came and said, hey, you could make the same. same amount. Well, that's not true. If I can make the same amount, I'd do stocks if I knew it, and there was no risk. I just feel like risk is really low because I know my market really well. I know my deals really well. I know what goes into it. But it's also like to be safe with diversification. Yeah. I honestly should transition. And that's why I brought it up with Kevin is, and when I watched your Kevin O'Leary thing, and he kind of blasted you a little bit. I was like,

freak. You know, I've always, especially rich dad, poor dad, like don't diversify. Right. That's what I've lived by, but I do think in the next year or two, I need to. I'll tell you my own personal experience, I've invested, besides buying the Vegas place and this place, everything else into stocks. Best decision ever. Just split between index funds and just I got those individual stocks that happened to do well. But it's been nice. Yeah. It's so nice just to be able.

And I have a thing every morning, I go in and I buy the S&P 500 every morning. It's just like my thing in the morning. I love going in there. click and buy and just it's off and it's done and then I see it's been a good market yeah it has but I mean I've been true and if it was a bad market

you could still rent out your places since they're here in L.A. Yes true that was the thing I was to ask you is your personality with what you've told me about you know the old man it has to hurt your soul if you see yourself lose a hundred grand like and you see it dip does that not affect you or

no there was one day there's one day in the market. I think I was down 60 grand. You told me. Yeah, I showed Jackdow. It was just like, yeah, the hard part for me was that, and by the way, this is like down 60, but I was still up. So it wasn't like down money, but I was up and then down 60. And I remember thinking to myself, like, how many times where I was so like, I didn't order the avocado, I didn't get the double meat at Chipotle, I got the smaller appetizer. because I didn't want to spend the extra like $3.

And I'm like, there's $60 grand gone. How many times could I have done that? So that was what was so hard for me. But now it doesn't bother me. I think in the beginning when I was really going heavy into it, it just took some getting used to. But now any swings of plus or minus 30, 40, 50 grand just, it doesn't matter anymore.

It's the same with real estate. Early on when you have a bad eviction, you've got to go in. It hurts really bad. questioning yourself and now money comes and money goes and it just is what it is but i don't know i love personal ownership i love the empire aspect but you can get both but you could get both yeah and i should yeah like i know i just try it i would take with with the amount of money you're making take 500 grand or a mill put one million in just a broad index fund and leave it see how nice that is

are you invested in stocks i don't know i did one year when i didn't know what i was doing i have eight grand in an i r a weble right You got your four free stock. Four free stocks. It's not up for Robin Hood. M1 finance. Yeah. Yeah, I need to do that.

I know that's a good thing to make money on YouTube and I don't do it. Yeah. But you should try. Like my goal this, well, in the next like six months is I want enough in the stock market. No, I'm almost saying I want enough in the stock market where it equals the amount of debt I have in the real estate. So four million in debt. I want four million in the stock market. Interesting.

That's my next goal. And then how much. in Bitcoin. I should do. That's another thing. I feel like I should, Andre Jick has been telling me nonstop to put money in Bitcoin since like 10K. Well, I heard what like Tony Robbins was saying it should be at least 10% of your portfolio. I think 10% is too much. I mean, Andre says 1% and I heeded his advice and it's done me well. Really? Well, yeah, especially the last month or two, right? I don't, yeah, I wouldn't say there's any downside in putting 1% of your entire net worth in Bitcoin.

Yeah. I don't think this, I mean, worst case, you lose 1%. But it's never going to go down 100%. It's never going to be worth nothing. I think it's always going to be had some sort of value. Yeah. So you're not going to lose. So worst case, you go from 1% to like a quarter of a percent, like worst case.

But yeah. Oh, I was just going to say with the stock market, Bitcoin, any of that stuff, when I see it's like this, I get major anxiety to put money into something that's like this. And so. Yeah. But real estate has been like this this year, too. Yeah.

I think I understand it, though, all that stuff. And that really is my problem is it's going to take me investing time into it. I just don't have the time. I don't want to put in the time. I know I should put in the time, but I think that's where I'm out of all that stuff. I think it would do you well to start buying into it. Just do it a little, little by little, and it'll make you feel good. So, yeah, so now we've got to find the clickbait for the title there.

How much, how much did you make every month? What is this? You run a really tight ship. This is way more organized in mine. Mine, I just do like one bank account and a dollar bank. What bank is that? I don't really want to. It's a local credit union.

I don't want people knowing the small bank I use. So essentially you can see the mortgages going out and you can see the rents coming in. You can even go back a couple months and see the consistency of them. Some have good. Some have bad. Why do some of these have a lot of cash in them and others don't? That doesn't have a whole lot of rhyme or reason to it. Essentially, when they get pretty big, I just pull it.

I always keep at least that six months reserves for the units in there. Got it. I try to. Does that make sense? Yeah. This is a higher interest rate savings account. So I'll move everything out of the LLCs and put them here because I'm getting just shy of 2% on that money.

Wow. How are you getting 2% on that? So here's the thing. Everything I do, I use local credit unions that I've built relationships with for years. So my credit cards, my mortgages, that's why I can get such good rates on commercial loans. I got 10-year fixed, 25-year am with a 25% down at a 3.5 interest rate.

Wow. Now in a commercial property, that's nuts. And it's because I do everything through them. So I just went in and I said, here's the deal, like, I need a higher interest rate on the money that's sitting there. I've kept everything with you guys. I shopped it out with everybody. And then I got them to go on.

You're a big fish there. You do that in L.A., people would laugh. You bring that amount to banks. They won't even care. You have to have like 5 mil, for them to even consider like having like a private banking relationship or anything. And that's why my biggest, and I push this on my channel hard, if you're in an area, find your small local credit unions because they're willing to talk to you.

They're willing. And they weren't early on, but once I had three, four, five mortgages with them, once I had pretty decent deposits with them, then I built those relationships. And now I know all the people that make those decisions. I should just give you my money. You take half a percent. And then I take the other one and a half percent. There's a lot of fake accounts.

We should all, you should start a syndicate. Seriously, I guarantee two percent. Like, everyone would give you their money at half a percent. So you could give them back one and a half percent. Yeah, and I'm sure I get, like, there's got to be something illegal about that. Yeah, I'm sure. Yeah. Like, and I'm sure a big, a big portion of it is all the business.

They're watching that stuff for sure. But not a bad business idea. That's the thing, though, is people, there are, other ways right now the market's harder and I guarantee this will drop because of what's gone on. I just had a locked in for a year. No. So we have to know though an amount for clickbait. What is your total monthly revenue?

Gross. What is your gross revenue from rental properties? So I didn't run the gross. I ran after all of my expenses and maintenance. That's not clickbait. That's not clickbait. We need gross. I can do the math really quick and get it.

We need the gross. Or honestly, just round it off. It's just like, round it off right now. We'll cut this part out. Just be like, I'm going to estimate it's around, you know, it's about. Got it. Because we want to put $100,000 a month. So that's the goal.

How do you like your sparkling water gram? It's really good. I liked it a lot. Isn't it good? Zero calories. I was laughing at the thing. I posted in my story. 190,000 ceiling fans recalled because the blades detached and fly off.

And then my caption was, if you thought 2020 couldn't possibly get anywhere. That's so gnarly. That made me laugh. I saw that. It was like, geez. Crazy. It's wild. Imagine like sitting down, like watching the Simpsons, like with your family.

And just a blade from the ceiling comes sticks right next to your head. It's final destination. Have you seen that movie? No, I've not. Oh, final. The great movie. It's basically that they cheat the D word. When you pass.

away. They cheated that D word. And then the D word comes and tries to get them. So you can't escape. Oh, that's fascinating. Yeah. So, yeah, one guy had a premonition of something, avoided it so he could still live. And then they find these grotesque ways

to get everybody off one by one. And so Blades splitting with the fan, like these random acts to, anyway. Guys, shout out Final Destination. Oh, we need to get it to a hundred. Come on. Come on. There has to be so. Okay, so. He's adding He's adding up his gross rents, and we're telling him we need to put $100K. He gets $95,500 a month.

That's legit what it is, though. That's his gross. It's $100,000. Find a way to get another $4,500 in there. $4,500. Get another unit. Buy two more properties right now. We're putting $100,000.

So I helped three different people buy properties that would have put it over, but I passed them off to my sales reps and then jacked. All right, there you go. $100,000 a month. Really, it's $95,000. But we're going to call it a hundred. You make $4,000 elsewhere. We're sure of it.

It's coming somewhere. Yeah. Wow. Yeah. Are you going to help Jack find a place now? Yeah, we got to talk about this because we had Jack Doherty on the podcast. And he said that you helped him find an investment property and walked him through basically everything. He gets to use your property manager, same lender that you use.

So I reached out to you and I asked if you could do something similar to me because I want to get into real estate. But it's difficult for me because I don't have very much time. to figure out the new LA market or Las Vegas market and I knew what you did with Jack so I was wondering you know if you do the same thing for me and you agree that's dangerous because if anything happens we're on the podcast here so that's what's so yeah it's the dangerous stressful about and same with Jack so and I think he talked about on your podcast he'd had negative experiences before it's the reason I don't ever want to do like partnerships or anything like that is I want people to understand what they're doing and I want them to make the decision that hey it's a right deal i don't want anna i don't want to take money from it and that's why i can't do this for everyone so it's i'm starting to set a precedent and a lot of these deals are deals i would buy i would want to do you do it once and everyone else is going to come yeah i'm the last i'm the last one you do it for me too there's going to be someone else watching who has a channel to me i do i think i know exactly what i want though uh maximum profitability

minimal risk. Yeah. That's what I'm looking at more. That sounds good, Graham. That sounds good at it. Yeah. So we are going to, I am going to help you pull it off. I got to figure out how I'm going to do it moving forward just because I can't.

Like the Jack one stressed me out because I knew it's a big audience. And with my audience, I push 10% cash on cash return. It's got to be that. Kevin gives me a hard time. Like that's hard to find. That's a really good deal. And it sucks to hand that over, especially when I didn't make any money. on it, but it comes around. So I did tell you I'd do it. We'll find a way. No promises on how quickly,

I think, in the next couple of months. No rush. A couple of months. That's soon for me. Jack has a few days, Max. I am eternally grateful for this opportunity. Jack's going to have a girlfriend by this. Yeah, it's a few months. That's not going to hope so. That's wishful thinking. But yeah, I'm extremely excited to get into, you know, investment properties. And I will keep you guys updated with the journey so everyone will know what's going on very excited and very grateful for this opportunity yeah definitely and we are going to make sure that you know your stuff so that when we do find a good property i want to see you hyped because you've done your research and you know like it's good well i just have to understand well you know what give give jack that one okay

that's fine give jack your program give jack your program so he could go through it and then learn from that and actually i want to see it too so yeah all just a little bit of a little I want your feedback too. The thing about it is there's so much in real estate investing and I'm consistently adding to it. But I really tried to make it so that people knew everything they needed to know to find properties, to build relationships, to do due diligence, to know what a good deal is and to know how to finish and get that.

I want to watch it. And the reason why is because I've wanted to do a real estate investing course for years, but I got so burnt out after doing the YouTube course. It sucks to make a course. Yeah, and I couldn't do it because I realized that it's not just like how to buy real estate, but then how to negotiate and then how to do your inspections and then how to get a loan and how to shop the loan around. How do you find tenants?

And it became like one thing. I had to do two other points. Talk about it. And then two other points and then two, it kept forking and forked and forth. And then I'm like, I got this project for like years. Yeah. And by the time I make it, then people are going to want something like new. So I've given up on that for now.

It's super overwhelming. I'm curious to see what you think about mine. I think what is hard is I love giving stuff away from free, but there's value when you spend money and when you invest in yourself and do that. But I've wanted to keep it at a price point. That's why it's at where it's at. But I'm always going to feel like there's more, especially when people start thinking about 1031 exchanges,

when they start thinking about cost segregation. Oh gosh. And then that's, all of that other stuff. And I've added videos with that. I'm always going to be. be adding because when you get into bigger multifamily, all of that, I feel like they're going to want to know about that.

All right. So we'll watch it. Send it over to it. We'll link it down below. But Jack, you will be the decider on this one. If you like it. If you don't like it, we've got to blast it. That sounds good.

Yeah. And if you get a bad deal, too, if you get a tent of a vacation. What you could do is sit down with them. Sit down with them and film it. Yeah. Yeah. But we've been recording now for an hour and 30 minutes maybe. All right.

Thank you so much. Thank you. Amazing meeting you. We've been talking on the phone. It's good to finally see your face. Thank you for coming on. Yeah, we pulled strings to get you on today. So I'm really glad, like last minute you agreed to come on and talk to us.

Last podcast episode of the year. Definitely. And you need to know, look up to you a ton. Like love your channel. I've been looking forward to this. This is awesome. This is fun. Thank you, man.

Yeah. What's your credit score? I looked it up. I knew you would ask. I think I'm 789. Good. It had just dropped because the big purchase. Yeah.

How many credit cards do you have? Six. Okay. Cool. That's pretty good. That's good. All right. Cool.

So thank you guys so much for watching. We really appreciate it. Make sure to subscribe. Hit the like button. Get your four free stocks. Your information is down below the description. Oh, we got to get you to 100K.

Yeah, we need. Listen, if you're watching this right now, if everybody who got to this point just goes and subscribe, it is a perfect point to go and do this. Before you forget, go and subscribe, we'll get you to 100K. That would be awesome. I had a goal by 20K.

by 2021 and I'm just so close. Oh, let's do it. No, no, no, we're going to be posting us on Sunday. It's not going to happen by then. Are you kidding me? Yeah, I thought we had a few extra days. I'll take it a day after. Shoot the moon land on the stars type deal.

Say destroy the like button for the YouTube galilee. Destroy the like button. Cool. Thanks guys for watching and until next time. Until next time. Cool. You know how to do the intros? I watch it, but I'll probably crack under pressure.

You can give me that. How much money we've made? No. Okay. 33rd episode? Yeah. Yep. So you're going to say,

welcome to the 33rd ever episode of the iced coffee hour. Introduce yourself and then say so far the podcast has made. I'm going to write it down or I'll forget it. 28, 940. 28, 940. Welcome to the 33rd episode of the iced ever. Welcome to the 33rd ever episode of the iced coffee hour. So far, you have made $28,940.

Is that right? That is absolutely. Did I probably? I feel like we're done. Once more. Once more. Take the energy 20% and then say your name. So higher or not at high?

Just 20% more energy, outdoor voice. Welcome to the 33rd ever episode of the iced coffee. Coffee Hour. My name is Chandler, David Smith. Am I allowed to start with what's up or what's going on? Whatever you want. Whatever you want. Yeah. Go for it. Go. What's going on, guys. Welcome to the 33rd. Ever.