The Money Mondays - Making Millions with Real Estate Investing 📈 Albert Preciado & Cole Hatter | E18

Episode Date: May 29, 2023

Get access to exclusive interviews here: https://themoneymondays.com Like this episode? Watch more like it 👇 Dean Graziosi + Joel Marion Share Their Secrets to Success | E16: https://youtu.be/7gn0rNubXbg Codie Sanchez & Pace Morby on Acquisitions & Real Estate | E14: https://youtu.be/F0vWu6r0WMo Watch ALL Full Episodes Here: https://www.youtube.com/playlist?list=PLs0D-M5aH-0IOUKtQPKts-VZfO55mfH6k --- Albert Preciado is the Founder and CEO of The Mortgage Guys, Ambiance Realty and Driven Enterprises. Albert is also a Real Estate Investor and has been in the mortgage industry since 2005 as a licensed Broker and Mortgage Originator. He started his mortgage company after getting turned down for a mortgage time after time in the early 90s. Albert had a dream to have a house with a big yard and a dog since he was a kid, so he just started his own mortgage company from scratch to help humble families make the American Dream their reality. -- Cole Hatter is an author, award winning speaker, and entrepreneur who is passionate about creating financial success for himself and others while still giving back. Cole has taught tens of thousands of people to become the best versions of themselves, create massive profits, and impact the lives of others through charity work. As the founder of Thrive: Make Money Matter, he has made it his mission to empower individuals to create both financial and social impact. Cole's magnetic personality and captivating speaking style have made him a sought-after speaker and mentor, inspiring countless individuals to pursue their passions and live a life of purpose. Through his various ventures, including real estate investments and online education platforms, Cole has demonstrated his ability to turn visions into reality. With a heart for philanthropy, he continues to make a positive difference, proving that success is not just about wealth, but about making a meaningful impact on the world. --- The Money Mondays is a business podcast here to teach you how to make money, invest money, and donate money by showcasing some of the world's most successful people and how they do the same. Hosted by serial entrepreneur Dan Fleyshman, the youngest founder of a publicly traded company in history, this money podcast gives you an exclusive behind the scenes look at how the wealthiest celebrities, entrepreneurs, athletes and influencers make, invest and donate money. If you want to learn more business and investing while you work to improve your financial life, you're in the right place! Subscribe for new weekly episodes: https://www.youtube.com/@themoneymondays?sub_confirmation=1 Dan Fleyshman, The Money Mondays Learn more here: https://themoneymondays.com Watch all the podcast episodes: https://youtube.com/playlist?list=PLs0D-M5aH-0IOUKtQPKts-VZfO55mfH6k Subscribe for new weekly videos: https://www.youtube.com/@DanFleyshman?sub_confirmation=1 Let’s Connect... Website: https://themoneymondays.com Podcast: https://podcasts.apple.com/us/podcast/the-money-mondays/id1663564091 Twitter: https://twitter.com/themoneymondays LinkedIn: https://www.linkedin.com/company/the-money-mondays/about/ TikTok: https://tiktok.com/@themoneymondays FB: https://www.facebook.com/The-Money-Mondays-110233585203220/

I had 25k and I had another credit card and then I told a buddy hey buddy you want to start this driven event with me 50 50 so many he would have been 50% owner of a company that makes millions of dollars now every year and he said no and and and and so and so then I said well okay well I'm gonna put the 25k that I have and I'm gonna pay Grant because he was our first speaker I'm gonna pay him and I was thinking I'm gonna get his audience right and I paid him a 25K deposit and then I I used my credit card to pay 25K deposit to the rich so we were out of money Yeah, we're out of money because we have we're making we're making like a million and a half more or less Yeah, but we're spending more than that because the company eats up all the The real estate company ambiance and TMG they eat up the money. Right.

So I don't really have money to play around with. My cards are kind of maxed out. So I don't have money, but I had 25k. Put the deposit for the Ritz, and then I told Till, we're going to sell tickets, and that's how we're going to fund the event. So we funded the event. Yeah. And even the day of the event, we owed 26k, they wanted 26k more. I don't know for what the AV team something happened and

Elena's at on stage Elena Cardone because she came with the package with Grant and They said if you don't pay us a 26k We're gonna cut down the one cut the the mics and and so No, when and spoke to the guys and they just let us they said okay. You'll pay us when we're done We'll give you a week to pay we We're like, cool, let's go. The event ended. Crazy event had 500 people. Oh, 500 people?

Like 500 people. We had Grand Cardone, we had Bradley Tim Story, we had Sam Backtr, and we had a few others. So I kind of copied how grand did it, and it worked out really good. Ladies and gentlemen, welcome to the Money Mondays, where we focus on three main topics, how to make money, how to invest money, and how to give someone a way to charity.

Today's guest I've known for years, I've watched him put on multi-thousand person events, I've watched him throw masterminds, I have real estate conferences and everything between, because people want to listen to what he's built and what he's done in his overall business and life, not just the real estate side, but how he's built a beautiful family with three kids, the flashy cars, the mansions, all the fun parts of aspects of life in between working hard, morning, noon, and night, and mixing in a little bit of the gym and fitness

and health, what I call the all-encompassing life. Not that many people have it. And today's guest, Mr. Albert Presiado, definitely has it. Thank you, Dan. All right, so the way this works is you're going to give your quick two-minute bio and then we're going to get straight to the money. Okay, well, I'm just an example, I think, for people that come from nowhere. And for me at least, I always had like an insecurity, I would say, because they didn't speak English right.

And I struggled through middle school, high school, and dropped out of college. And I always thought that I was never going to be anybody, because people would tell me that it's not for me. But I just fought, and I think the biggest breakthrough was that I started investing a lot of time into self-improvement and learning from people like you and other coaches that are out there in business in the space, Grand Cardone, Tony Robbins, et cetera, there's a lot of them. So then I just started grinding and learning through mistakes. So now, we opened a few companies and I made a lot of mistakes. And then the companies didn't grow until I built my personal brand. So once I built my personal brand and started doing these events,

it scaled all the companies, which turned to multimillions. Wow. All right, so there's a lot to unpack there. Let's walk through, let's walk first through some of the companies. What is the real-t company, the mortgage company, like walk us through what are those? So the mortgage brokerage, it's called the mortgage guys right now. And we're in the process of becoming TMG landing, which is going to be a nationwide lender. Okay. And but it started as the mortgage guy. So the mortgage guy was just me. And then what I a mentor told me if it's the mortgage guy in Albert, it's too like single person. Yeah, and then people are not going to be your little bitch. So he said, why not do the mortgage

guys? It's plural and you could also involve women. So then we did that. And then that started attracting more people. And that's how we started growing. And so that's the mortgage brokerage. But then I said, well, how can I get more mortgages? I thought getting a Ferrari would attract more people. And then I also thought that giving people like a high split, a high commission split would attract more people. But it wasn't until, and then also before I got the personal brand involved, I said, I'm going to open a real estate company, which is on the real estate brokerage,

because then I'm going to get sales from there and get more mortgages. All of that didn't work out, but what did work out was that when I got the Ferrari, even though I could barely afford it, it was my dream car. I got that Ferrari pre-owned, and then that started getting me attention, and with that, I started getting a lot of agents to join both brokerages, and that's how that started. Oh, I see. And so, why do real estate and mortgages, and like, there's so many aspects to the real estate market why do multiple things?

Well, I used to call it a triangle until I got more a business educated and they told me it's vertical integration So then we started integrating In this like companies in the same industries Which then led to a Nesco company so then we open a Nesco company So now when we sell the property, we get a commission for the real estate, we get a commission for the mortgage, and now we get a commission for the escrow fee.

So that's how we started integrating all of them. But the biggest breakthrough was that I think that everybody can learn from that is creating events and being out on social media in the beginning that's scary because you don't feel confident and you feel like, man, I'm gonna say things the wrong way. People are not gonna like me, I'm gonna get nervous. So I just threw myself in there and I made a lot of mistakes

and people made fun of me, but I still kept going. And over the years, I just got better and better and now it's like seven years of driven events, and that has scaled the companies because we have thousands of people that come, and then I recruit a lot of agents, and I also get a lot of sales for other companies. So the driven events have grown over the years.

I mean, the first one, how many were at the first one compared to now, you're getting like 2,000 people to show up? Walk us through that scary first event when you've through the very first driven conference. I always wanted to show up. Yeah, walk us through that scary first event when you through the very first driven conference. I always wanted to speak on the stage and you've heard about the 10X conferences and I wanted to be on that stage and I wanted to speak and I never got the opportunity and before that I wanted to speak on another conference which was mortgage related but I never got the opportunity either. So I just got tired of waiting and I just told seal one day I came home and I said I'm really inspired, but I can't wait Let's just start our own event. Yeah, so then she said well, what do you mean?

And I said well if Grand Cardone Started a 10x and he started it with three months in Because he didn't have a year to plan it He just said I'm gonna do it in three months and he did it in three months So I said if he did it, why can't I do it? Exactly. So I said, I'm going to do it. And people, most people would say, well, Albert, you're not as good as Grant. Grant's like, you know, he has so much more money than you right now. He's more experience. He's done it before. And I said, I don't care. I'm just going to do it because I'm not getting an opportunity to speak

there. I'm just going to create my own. So I told still, let me take a shower and let me come up with a name. So then I was listening to Patrick Bedabit, who was another mentor of mine. And he kept on saying drive drive drive on the video he was doing when he started his value team and channel. And then I came out and I told till I got it. We're going to call it drive. And then it's going to be, it's going to be in three months from now. And then she said, she said, I don't like that name. It's missing something. And it was missing one letter.

So then we added the end, we called it driven, we planned it for three months from that date. And then I didn't have any money. But I had 25K and I had another credit card. And then I told the buddy, hey buddy, you want to start this driven event with me 50-50? So I mean, he would have been 50% owner of a company that makes millions of dollars now every year.

And he said no. And so then I said, well, okay, well, I'm gonna put the 25K that I have and I'm gonna pay Grant because he was our first speaker. I'm gonna pay him and I was thinking I'm gonna get his audience. And I paid him a 25k deposit and then I I used my credit card to pay 25k deposit to the writ So we were out of money. Yeah, we're out of money because we have we're making we're making like a million and a half more Less, but we're spending more than that because the company eats up all the real estate company ambiance and TMG

They eat up the money right so I don't really have money to play around with. My cards are kind of maxed out. So I don't have money, but I had 25K, put the deposit for the Ritz, and then I told him, we're gonna sell tickets, and that's how we're gonna fund the event. So we funded the event.

And even the day of the event, we owed 26K, they wanted 26K more. I don't know for what, the AV team, something happened, and Elena's on stage, Elena Cardoneone because she came with the package with Grant and They said if you don't pay us a 26k We're gonna cut down the one cut the the mics and and so Still went and spoke to the guys and they just let us they said it. Okay. You'll pay us when we're done

We'll give you a week to pay we're like like, cool, let's go. The event ended. Crazy event had 500 people. Oh, 500 first event? Like 500 people. Oh my gosh. We had Grand Cardone, we had Bradley Tim's story, we had Sam back to our, and we had a few others. So I kind of copied how grand did it,

and it worked out really good. And then the next year, I said, we got to double it. And then we went to a thousand, then 2000, and then the driven conference, we've kept it at around two thousand. That's perfect. That's the big event. I never wanted to go bigger.

And then we added the business bootcamp, which is in the middle of the year, and then the other ones in the end of the year. And the business bootcamp is smaller, like 600 people, more or less, but it's more business in the conference. It's a little bit more expensive. Not too much, but it's more business related. It's more for people that want to hear the boring stuff. Like the business stuff that really pays you. But the conference is more like motivational, inspirational, and everything. Business

also, but more of for everybody. So my third and final book of my series is called How to Set Up Your Events for Under $1,000. First one was how to set up your personal brand, how to set up your business, etc. All under a thousand dollars. Let's walk through some of the events so people can hear. If someone wants to throw their first event and they don't have much money and they have their credit card and they want to put it together, what are some of the things that they need to do? Because what you kind of said was I booked my one big name speaker, I booked my venue, and the rest I just kind of figured out. But 500 people showed up, you know? Walk us through like the main idea of someone says, you know what, I want to throw a real

estate at a event, I want to be like Albert Presiado, and in three months or not, I'm going to throw a real estate at a event. What do they really need to have to throw a small event, not a big event, a small event? I think one person that's going to bring a their audience, and you got to pay them. You can be cheap. So like if if you don't have 25 grand or 50k, I think with 25 grand, you could get a good speaker that has a good audience, maybe not top level speaker that's that's that's that's that request a lot of money, but you could get somebody on the way up that's kind of like in the middle, but has a big a huge

audience like for example David Goggins, I got Goggins when he was on his way up. So it didn't cost me a lot of money, but if you pay somebody like that on the way up, instead of paying somebody that's already up, that they're gonna request a million dollars, 500,000 or 250,000, you could easily get somebody 25K, 50K at the most, and they're gonna bring the audience, you're gonna mark it, and they're gonna bring in people,

they're gonna bring in sales, and then you're gonna get known so you're paying yourself the audience, you're gonna market, and they're gonna bring in people, they're gonna bring in sales, and then you're gonna get known so you're paying yourself to get known. But now, what happened is that you always told me this was gonna happen. Now people wanna pay me to be at their events, and now everybody wants to come speak at my events for free, and I'm talking about big names,

and sometimes even people wanna pay to speak at my events. So that's what happens, but if you have a company and in this, a business, whether in any industry, if you don't have a personal brand, you're gonna grow it very slowly. That's how I feel. But if you become a huge brand, then I think it's gonna make your business scale fast

and very easy. So on the personal brand side, what are some of the elements that you like to use to build your personal brand? And for someone that doesn't have money yet, they don't have the Ferraris and Rolexes and fancy watches, you know, paddock, phileps, like, yeah, there's some of the different things that are the flashy things. What are some things people could do to start building their personal brand until they can afford some of the flash them? Might not fit everyone else, by the way. Some people don't, doesn't fit them. Yeah.

Well, for me, what worked is that I always, I think you have to make some money. And once you make some money, you start with like a starter watch, you start with a starter car. That's the way I started. And the reason for that is because I started, focus, I started thinking about like,

You have Grand Cardone, you have Tony Robbins and there's others, right? And I started thinking about like, what do they have and what do I have? Like, how am I different? How am I, how can I compete with them? Because I can't compete with them if I just compete against their audience versus their audience. So I said, what's different? And I started thinking and then, you know, friends like Brett Lee and yourself and even Grant himself and Patrick but David,

they were like, you're Latino. And I said, yeah, right? I'm Latino. And I speak Spanish. Spanish was my first language on Mexican. So I'm thinking like, I'm Latino, like Grant, Tony Robbins, they're not Latino. They're white.

So I said, well, why not go after that Hispanic Latino community because it's huge in the United States. And they can come, I could actually dominate them in that space because the Latinos are going to be naturally attracted to me because they're going to be like, you're one of my guys. Like I came to you. I walked into your event right here and a few Latinos went up to me and they're like, Hey, where are you from? And I said, well, I'm Mexican. They're like, No, shit, are you serious? And I'm like, yeah, I'm Mexican. And they were like, Wow. And right away they fell in love with me. And it's like, I said, well, man. And then Edmila told me that too. Edmila, he's like, you're the guy for the Latinos. You're

the guy. So then I said, well, what Latino mortgage guy, what Latino realistic guy drives a Ferrari? So I knew that that was going to be like a big splash. That was going to be my splash forget the watches, because people can get watches, people can get fake watches, but you can't get a fake Ferrari. So I said, I'm going to go get a Ferrari because I think of that's going to get a lot of attention. And this before the robberies and before I started getting all crazy here in California, but I went and I started looking at cars and I said, I'm going to get this Ferrari. And I'm going to market myself as, Hey, if you want to, if you want to, if you join Albert because if you join Albert, you're going to become a millionaire mortgage guy that drives for our. So I went out

there and I got this Ferrari, but I got a great deal. Also, I didn't have the money to get it. But I had, I spent my last penny's getting it because I told sale Hey, this is it and she was pregnant with my first daughter, which I named after the car Italia So that's the car I got the first I paid Italian. That's why I named her Italia But I told sale she was pregnant. I said I said I'm just gonna go check him out. I'm gonna put a deposit It's okay. I'm not gonna qualify either anyways, so I went there long story short I qualified. After a few calls and they try to work things around, but they asked 39,000 down and they

also asked and they gave me a $2,200 payment a month. So I said $2,200 is not a lot and we could afford it. And hopefully we could afford it, but if I lose it, it's not the first time I get a car repossessed. And then I put all the money though, the crazy part is that I had, I put 39 grand, and that's all I had for my reserves for my mortgage company.

So then I knew that I needed to make sales again, which is the same thing as like I did the event. I needed to sell tickets or else I was gonna die. So I said, okay, well, I'm gonna use the Ferrari, and yeah, it worked. I got the Ferrari and all of a sudden the business just goes crazy and People are sending me mortgages real estate deals because I have the Ferrari now everybody wants to go have lunch with me Everybody wants to do business with me and from there on I created my brand as the Ferrari guy in mortgage because everybody when they see me

They're like all you're the mortgage guy that drives Ferrari. That's how people know me now. So that's my brand. And then, you know, I started just doing other things. I started working on the fitness. I bust my hair off. And I said, that's going to be kind of like my persona that I'm going to put out so that people recognize me when they see me.

So if someone's out there in the real estate market, why should they or how did they decide what mortgage broker or real estate agency to work with or he's just walked through a real life example like if I'm a real estate agent in San Diego, LA, Orange County, why go work for ambiance realty or the mortgage guys? Because we teach him how to market and what I notice with every mortgage company and real estate company and people that come and visit us, they're like wow, the headquarters, the training that you guys have, you guys are teaching us technology, social media.

I think the big one is social media, because all mortgage companies and mortgage companies, I'm not gonna say all of them, but like 99% of them, they don't know social media. Like they're not in that space. So when you think about mortgage, like when you think about a mortgage person, it's a typical

older man that's doing the mortgages. And you have a few, you have also women, but it's like an older person, handling paperwork and mortgages. No for our reason, no social media is just old school. So when you start using social media to market, it opens the doors for so much business. So when this market change happened, which some people call recession, it slowed down and it killed a lot of mortgage companies and real estate companies because rates went up and then property value started going down. So people started like panicking and it became very hard for those that didn't have an audience. For those that didn't know how to use social media.

For us, it dropped a little bit, but it also eliminated all the competition. So we got hurt a little bit, but then we just took off. So right now we're on the wave up and it's all because of social media. If I didn't have social media, like Instagram, TikTok, YouTube, all of those things, we would be dead now. Seriously, like we wouldn't be here right now. We would be at this in the same spot as all the other mortgage and real estate companies. What, who's the best realtor right now?

Josh Altman, what does he have? Personal brand. Yeah. So what's interesting is when there's chaos in the world or there's people are nervous, is when you can actually grow your business the most. Yes. We went through this with Ever Bull or Asa E. Bowl chain.

There was 25 locations. The country shut down. Right? It was March 2020. The whole country shuts down. Restaurants were screwed over. Nobody's making new leases. Landlords and commercial buildings are freaking out.

Moles are freaking out. Strip balls are freaking out. Restaurants are going to not come into sign leases right now. So what we did was, me and some friends actually bought 23 out of the 25 locations, two of them were in stadiums, so we didn't buy the ones in stadiums. We bought locations and we're like, hey, ever bull, focus on franchising and go and get more leases in there,

and they went on a rampage. They went and got 297 new leases. Think about that for a second. They went from a company that owned 25 stores to focusing on franchises. Go get 297 leases because Jeff Fence during the team realized we can negotiate six months of 12 months of TI, free, you know,

tenant improvements, six to 12 months of free rent. And they're just betting on the fact that America's gonna come back at some point, which it did. And so they had all the leverage because in times of chaos, like you just said, like right now, some of the mortgage companies are going to go away. Your mortgage business will go up. Yeah. When a bunch of restaurants went away and they weren't signing leases,

we go sign leases. Now, fast 40 year and a half, Ever Bull has 60 locations, opens one new location every six days, tens of millions of dollars in funding, because during the chaos, we went full steam ahead. Yeah.

All right. So we talked a bit about the making money side. Let's talk about the investing side. Why should people be considering investing into real estate? Well, I think that it's the best investment because there's five things that you get from real estate. So I don't know stocks. I'm not an expert.

I know the basics, crypto, and there's a lot of other investments that people can make, but you can, you don't have the same things that real estate offers. For example, if you want to buy a stock, you can finance a stock. You got to buy it. I'll complete. If you want to buy real estate, you could leverage you so you could leverage number one. estate, you could leverage. You could leverage number one, you put 80, you put 20% down, you put 10% down, 3.5% down, FHA. A lot of people don't know this, but me and Sil became millionaires the first time. We became millionaires through business and through real estate. So the first time we became a millionaire was through real estate, because we used an FHA loan, which requires 3.5% down. So not only that, to qualify for four, you could go up to four units. So it's easier to get approved for a four unit property

than the one unit property. Because you live in one unit, and then you could use the other three units as rental income. So me and Silwan making that much money. So we used our income, plus we used three units for more income. So let's say one unit's renting for, each unit is renting for a thousand.

So you get a thousand, a thousand, a thousand, that's three thousand that you could use. They give you 75% of that. So you could use 75% of that as income and also add your own income. So you qualify for more. However, there's one rule. You can't get married. So like if you're watching this and you're thinking about your, your engaged,

keep it like that. Don't get married or if you're married, you could also get divorced. So let me explain why. Okay. Because when you're, when you're married, you only qualify for one FHA loan as a married couple. Okay. But before you get married, you only qualify for one FHA loan as a married couple. Okay. But before you get married, you qualify for two. So you could go and get a four unit property FHA, put three and a half percent down. And in case you could go and get another four unit, put three and a half percent down. So now you have eight and you each put three and a half percent down. So once you get married, it's only one time.

So I told Cill, Cill was dying to get married with me. And she wanted to get married with me and I told her, we're going to have to wait. And we're not getting married until I get my four unit and you get your four unit. And then so she was pretty grumpy at the time and she wanted to get married and she was pissed off. But that made her get a unit like that. Some will take on it. So, so I ended up getting three units, she got four units.

And then from there on on after that we got married Then she was a happy lady, but then once once we got married we started buying more multi units But now we had to put 25% down for units. So it's a very good program FHA so we bought more then we refinance cashed out you don't get taxed on money you get you cash out So if you borrow money from your property to buy another one, you don't pay taxes when you borrow the money when you cash out refinance. So we played that game, we made $2 million just with those properties that we've got that we gathered.

Yeah, so that was the first time nobody knew that. But that's the money that I had to open up all my businesses because when you open a business, I don't know if you made the same mistake I made, but when I started a business, I thought it was gonna be easy and't going to make a lot of money, keep all of it, but I was losing money. So I had to sell all the properties one by one to survive because I was negative for the first five years or more. And it wasn't until

the last three years, more or less, that we just started making like a lot of money, like a lot of money. And then obviously we had COVID, which affected us, but then we took off from there and then we had what recently happened, but then we took off from there again. So long story short, we sold all our properties and that saved our businesses, but that's just one leverage.

So that's leverage, also the tax deductions that you get. You also get rental income if you buy multi-properties. You also, you're paying the principle down every single month when you make your mortgage payment, your principle's going down. And then the fifth one, most important one, appreciation. So when you buy real estate, if you keep it for five years, more or less, five years, what I found for me at least,

I can't promise it to everybody, but for us, our properties all doubled in five years, what I found for me at least, I can't promise it to everybody, but for us, our properties all doubled in five years and less than five years. So I bought a property for 266, I sold it for 600, and all of our properties were the same story. So even if it takes six, seven years, what other investment is gonna give you a double in appreciation plus the tax

write offs, the leverage, there's just so many things. So that's why I believe that real estate is the best. And not only that, I know about it because I'm in that game. So for me, it's a no brainer. I'm sold. I'm in. I'm doing more real estate now. You sold me. I've heard a lot of people explain it, but the way you explain rental income plus appreciation plus the tax part of it. That's because I think I think the of people explain it, but the way you explain rental income plus appreciation plus the tax part of it that Cuz I think I think the way I explain it is for the typical Joe that's making 60k a year They qualify for a multi in it easy like that and they and if they're never gonna make more than 60k

Maybe they get a promotion now. They make 70k or 75k That's they're never gonna become millionaires, but if they buy a four unit property, then they buy another two unit and another three unit, every year, they'll become millionaires in a short time. So this makes it very easy for anybody to buy some multi units. So you also talk about investing into yourself,

you've hired mentors, you've hired coaches, people at the highest level are still hiring coaches. We just interviewed Tim Grover a few minutes ago and the highest level people in the planet Michael Jordan, Kobe Bryant, hired Tim Grover to coach them. Yeah. Why do you think it's important to bring on mentors, bring on coaches no matter what level of the game that you're on? Dan, I just hired a mentor right now and there's mentors for different things, you know, like West Watson. I became really good friends with him. We're like bros now. I'm just this brown version, but we're like so much. We did a podcast. It's going viral right now. I get you on tattooed up. Yeah, maybe I'll start with one, but, but, um, you know,

I mean, this guy's killing this guy's killing it in the space and the two million a month, literally, he's very open about it. So, so that that shows you like also for anybody watching this, he got out of prison. He was in prison 10 years, gets out in less than five years. He's making two million a month selling coaching. So I'm like, dude, I have four. I started seven businesses from scratch. Four of them did really well,

and four of them are active and multi-million dollar companies. I have the track record. I've been a business owner for over 10 years for a decade. And before the prior decade, I was working for a company. So I have 20 years of experience in business, and I don't sell any coachings. Like, I sell a little bit, but I'm making like, fuck, like 60 grand a company. So I have 20 years of experience in business and I don't sell any co-chains. Like I sell a little bit but I'm making like, fuck, like 60 grand a month. And then this guy's like, I make two million a month selling co-chains and I'm like, I have

businesses. Why am I not teaching people businesses? So I hired him as a mentor in that space. And now, you know, he said, like, he said the first in three months, you'll be making half a million a month easy like that. So, you know, I hired him. I made like 50 something thousand in the first three days in the first three days. You hired him in three days? I paid him, yeah, I paid him, I paid him 12,500, I think. And I made like 50 something thousand in three days. It made four times the money in three days. Just following his stuff, like his scripts,

his system, yeah, his system. So I'm always, I always wanna learn more. So now I have two companies that I wanna sell in the next three years, three to four years and a half. So four years and a half is my cap, but I'm selling two companies. So right now I'm building, I'm setting up the companies to sell, so I'm gonna move to Florida

in Maybe a couple years before I exit I want to be there for one year But now I'm hiring mentors to help me sell because I hired a mentor to help me start a business Then to grow the business and now I need a mentor to help me exit. That's why Bob Bobby Castro was one of them He sold a lending company for a billion. So that's why it's very important to hire mentors. Like I'm always I'm always high. You're one of my mentors. Like I'm always asking you, Dan, how do I do this?

Am I doing it right? And you'll always tell me like, you got to do this. This, this, this, and like, okay, I just follow it. And then it works. The best person to hire when it comes to accident companies, name is Roland Frazier. He lives about a half an hour from here. He's himself been a part of selling over 90 companies.

And he's one that he founded a mastermind called War Room. War Room has been out for years and years. They stopped doing it now. But he has masterminds, but more importantly, he does one on one. Roland Frazier, I will introduce you to him. He is the guy when it comes to exiting company. Okay. So we talked a bit about making money,

talked a bit about investing money. Let's talk about the charity side. So why do you think it's important because you recently decided you're like, you know what, I'm gonna start getting more involved. You motivated me too, yeah. Thank you. Why do you decide to dive more into the charity world

and why do you think it's important for people and or businesses to involve themselves in charity? Well, you know what, you motivated me, so I want to give you a Lot of credit to that because What I heard your show and I'm first at first. I'm like I want to be in your show Like you have the damn Bill Zarian and all these all these people that are super mega wealthy and famous So I'm like I want to be there, but then I listen to your show and then I saw, okay, I make the money, I invest money, but what about charity?

And then I started saying, like, you know what? I need to do that. And then because that's one of the main things of your podcast, so I said, I'm gonna start one. So one of my good friends, really close friends, is Tim's story. So I like, I'm one of his biggest donors, you could ask him. And, and I, and I noticed that the more I give, the more I get. So the more I make more, we started making way more

money when we started giving more, whether it's like, there's the, the leg guy. And instead of giving them 20, I'll give him a hundred bucks. I go to dinner and our bill is 500 bucks, and I leave a $500 tip instead of 20%. So I just match it. And every time I do that, like people are like, you know, are you crazy or what's going on? Sometimes people think you're drunk,

that's why you're doing that. But it's not the case. Like, I know that whenever I do that, and even when I've done it a few times when I was drinking a lot, it always comes back in multiples. So I believe that a principle of a life principle for me and sale has always been give, give, give and you know, God is going to take care of you. So because of that, I hit up Tim's story and I said, you know what Tim, I know I, I know I helped you a lot and I'm one of your biggest donors, but I also want to have my own. And what I'm

thinking is, you know, I want to help people that I'm very, I'm a very proud Mexican, but I'm also very proud American because without America, because I was born here, but my parents are Mexican. Without America, I wouldn't have the opportunity to go after my dreams. And also, I came from Mexico, so that's where I came from. So, I want to be a big inspiration to the Latino community and I want to help them and help them believe that, just like I did it, because I was an ESL and special ed kid.

That, just like a special ed and an ESL student kid was able to create these businesses that last year combined, did $30 million in revenue. So, and I started all of them with sale from scratch. Like I never borrowed money, no partners, nothing, we put all the money in. And then that led to the lifestyle, bail, air,

the jets, and all that stuff. But I want to be an example to them that they could also do it. So I want to do something for them to help them. Obviously, I want to be an example to them that they could also do it. So I want to do something for them to help them. Obviously, I want to help the whole world, but I just want to be a good positive influence. And I want to give to people that need that extra little push, people that maybe they're on the floor or they're homeless or they're about to give up. I want to give them hope. And if it's a little bit of contribution that I can do for them, I know that just giving,

God is gonna come back and take care of all of us. Yeah. For the last nine years, we have what's called the Trainers Kids Foundation, which helps 300 Latin American families in downtown LA. And every year they come for four different events. And the reason we, I post about it so much is not to raise money for Trainers Kids.

It's that I want people to replicate us. Yeah. So we need to do a Report card day. So right there in June the kids bring the report cards is 300 kids and their families and based on the report cards See they get this be they get kind of cool stuff a they get really cool stuff for the report card And we have a back to school day they bring their they don't have to bring a report card They just come for back to school We give them backpacks and haircuts and supplies and everything that they need for going back to school.

Thanks even food drive. That's where we really rally the troops. We get everyone to come there and bring all the meals. And then the toy drive is just escalated crazy, right? Where we started with seven, eight of us on the floor. Now we just broke the record for biggest toy drive in history. Yeah. None of those things do I go out there and say,

hey, give me a bunch of money, donate money. Yeah, yeah. I want people to replicate us. Yeah. So if you, Albert do I go out there and say hey give me a bunch of money donate money Yeah, yeah, I want people to replicate us. Yeah, so if you Albert can go out there and inspire the Latin American community and just your followers in general It's a do more charity by default. You're doing charity. Yeah, it's not about you donating 10 grand or 50 grand 100 grand Whatever the number is you inspiring people and showing them hey, we just helped out 200 homeless people We just helped out 400 kids are we helped out showing them what hey, we just helped out 200 homeless people. We just helped out 400 kids, or we helped out showing them what you do, is actually gonna go help and impact more of the world far beyond the check,

far beyond the money that you donate. And so it's important, that's why I showcase charity so much is that things like this, that if I helped inspire you even a little bit to go do charity, then you go help inspire 47 people to go do charity, but the butterfly effect of that. Yeah, yeah. All right, last question. do charity. But the butterfly effect of that. Yeah, yeah. All right, last question.

Right now, people have a lot of options. They can invest into stock market, crypto currency, businesses, real estate, et cetera, but the world's in chaos. The media is going crazy, stock market's going crazy, real estate market's going crazy. When people are making decisions about what they're going to invest in and why, how do you determine for someone's family or friends what they should be considering investing into? You have to know it very, very well or you have to know

somebody that knows it very, very well. So for me, I only invest in real estate because that's what I know. And I'm not a big, I'm not a big believer in having partners. I rather do it on my own. But if I do have a partner, then I want it has to be some, someone special because we've tried with partnerships and we haven't had good luck with them. And I guess I'm a control freak and so is still. So I think like for partners, it has to be somebody that you really, really trust a lot. Like for example, with you, you know, I'll do anything for you and I'll do any business with you, but it has to be a selected few.

So like if you tell me I have this idea, Albert, and you and you have so many people that trust you 100% because a lot of people, every time you have an idea, it's always a good one. So that's why everybody's like, yes, he has to do it. And you build that credibility and you have the track record. So if it's somebody like that that knows their stuff, then of course 100% if I know it 100% but a lot of people they'll come to me or I'm sure you get hundreds of the answer thousands of people that tell you, hey, Dan, I'm raising money for this restaurant. Hey, Dan, I have this crazy idea.

It's going to become the next billion dollar company. Hey, Dan, give me some money. Give me some money. But these people don't know what they're doing. So I either have to know what the space or I'll have somebody like Dan that knows his space and I'll be like, Hey, Dan, I'll invest it with you. Ladies and gentlemen, you have just listened to Albert Pressio. I want

to make sure that you go follow him across social media especially on Instagram TikTok and YouTube you will like his content and spare you entertaining it's fun you get to see his family his life is travel everything in between all of his events this is an important request that we have at the end of each episode we all grew up thinking it's rude to talk about money I think it's rude to not talk about it I think it's the reason that we have a lot of financial crisis in our country. I think it's the reason people have debt.

They don't know how to talk about rent, leases, apartments, salaries, investing, and real estate. They don't know any of these things because it's rude to talk about it. We need you to share the podcast, to have discussions about it, with your friends, families, and followers, get people talking about money,

and we're gonna see you guys next Monday. Ladies and gentlemen, welcome to the Money Mondays. This episode is gonna be so easy for me because I have one of my dearest friends here in the building. This guy slipped over a thousand homes. He's invested in real estate from dirt, four plexes of apartment buildings and everything between. He's had masterminds. He's had events with 1500 people at them year after year after year House on-name speakers any for selling Gary V. I could do an intro for like 17 minutes We only have 40 minutes here because we only talk about three topics how to make money and invest money How to give it away to charity and actually the charity part is the most compelling part because coal has inspired me and I'm

Thousand thousand other people to make money matter So we're gonna dive deep about these things and how to make money, how to invest money, how to give it away. We have the perfect person in the building. Please give it warm out of applause. It's Mr. Cole Hatter. What's up? What's up? So glad to be in my seat. Thank you for having me, bro. Excited to be here. We've been watching you climb the charts and so super excited for your success with this show. No surprise, but super excited for you nonetheless. So honor to be here, thank you, bro.

So we need, there's no stress, but we gotta stay number one. Yeah. You gotta put on a show. I'll take my beautiful wife. I'm a father to my three beautiful children. And I'm a life enthusiast, man, I love the travel. I love the surf, I love to be in the water. I love to be on the lake.

Like you took me to yesterday, thank you very much. And the life that I live isn't cheap, so I do run some businesses to pay for it all. But I definitely identify as someone who is filled with life, who lives freely, who passionately is obsessed with my family, and then runs businesses in my free time that create the millions of dollars to give me my lifestyle. I'm definitely not a business man, I wouldn't say.

I'm a man who runs businesses to fund my dreams, my life. And that was a clarification that I got actually from some of our mutual friends of just kind of thinking about myself differently and of putting my family and my priorities as first and the businesses are secondary to just fuel those and it's actually kind of changed my whole life, which is cool. And we can talk a little bit about that too. You've spoken for over 10,000 hours on stage.

I don't know what the number is. You probably don't know what the number is. I do, 7,000. 7,000? I'll take the over. I'll take the over. Yeah. That's it could be because I'm not you I don't count all the little events that I do too. You speak like a hundred little events per year. Yeah. That's one hour here two hours there three hours here four hours there Sometimes I put you on a panel for freaking four hours straight. Okay, with all these

Let's call it seven thousand hours. I think it's more than that how why, why, like, you know, people talk about Tarzan and the snakes and how that's so scary, but the number one fear in the world is actually public speaking. Yeah. And you've mastered that by obviously speaking way more than most any human on the planet. Yeah.

How, why, walk us through it. Sure. So let's start with the how. How I did that is I did for a very long time, seven straight years I did three day conferences where I was the only speaker all day Friday, all day Saturday. Yeah. So I was on stage by myself bro for nine hours on Friday nine hours on Saturday

and then another nine hours on Sunday and I did 228 of those conferences alone. So if you add that up that's like 6,000 hours right there. I'm gonna add that up. A lot of people will call call me on. They're like no way to 7,000 hours and that right there takes 90% of it. It is recorded. It is all it recorded. And then I've got my own events in there and all the other events.

So that's why it adds up to over 7,000. So that's how the 7,000. Why is because I'm passionate about inspiring people. And when you have the opportunity to have somebody's undivided attention and the privilege to suggest things to them that could definitely impact their lives and put them on a better course, it's an honor. And so it's a shame that some people are afraid of that. We can talk about that fear in just a second. But the why I do what I do is because

I know that God has given me a story to tell. I know that God has given me amazing talents to share with other people. And I think that it's selfish to not talk about it. And I love the subject of money. I think that for whatever reason, the conversation around money is somewhat taboo and a lot of circles and a lot of households. If you ask someone, what do you do? That's okay, but if I say how much money do you make, that's rude for some reason. And so I love the conversation around money and helping people feel free or to pursue it. Kind of doing a lot of the stereotypes around big income earners, tearing those down,

and then ultimately teaching people how to make their money matter as well. So that's why I speak. And it's something that, again, anytime you give me a microphone, bro, I'm a hoggit. You're ready. So, Thrive conference had over 1,500 people a year after a year after a year after a year. Why did you do it? Talk us through it. And the tagline afterwards is make money matter.

We'll talk about that afterwards. Yeah, sure. So I did Thrive to build my brand. I was realizing that I think that attention is the most valuable form of currency on earth. I think that if you have a large audience, you can literally monetize it in any way, ethically, morally, and legally, of course, but any way you want. And I didn't have an audience in 2014. I had heard of guys like you and read the various books from these influencers. I was super impressed by the Gary Vs of the world in 2014, but it was in 2014 that I realized I was costing myself money by people not knowing who I was, by me not even becoming a household

name like the Andy for cells and the Edmmerlets, but literally nobody besides my family knowing who I was was costing me opportunity. So I said, how can I become the center of influence? And I thought an event would be a good try. And it turned out to work. And I said, if I can host an event with people who are popular, but they're all coming to me from my event. So everyone in the audience is coming because they know who Gary V is. And he came to my event and who Robert Hershivek from Shark Tank is. And all of these big names speakers, people came for them. And they're like, well, who's this Cole Hatter guy? Well, if Cole Hatter is a big enough deal

and a cool enough guy to get Robert Hirschaveck from Shark Tank and Gary Vaynerchuk and you've spoken at Thrive, of course, but I'm focusing on that first year. Lewis House came out that first year. John Lee Doom is a bunch of great names. And I was able to get 500 people at the very first Thrive and introduce myself to the world.

I didn't even have an Instagram in 2012, I don't think. Like I turned it on 2013 and posted some pictures of my family. And what's really cool about that is it worked. I was able to borrow the brand credibility of other people. So for the listeners that are wanting to build a brand, one of the fastest ways to brand hack, if that's even a term, is by sitting next to people like Dan Flasman who has millions of eyeballs on him at any given time. And through that association, some people migrate over and start following you. Then it's important for you to stay interesting

and create content that keeps them engaged. But ultimately, that's how I built my audience. And, you know, I don't have millions of followers, but I have a loyal following. People found me, they checked me out, they saw what I was up to. And if they were interested, they were interested, they stayed, and if they weren't, they left. But I now have this die hard following where I mean just the other day

I needed to raise a few million dollars for real estate deal. I was on a jog, bro I wasn't like in a studio. I wasn't with microphones and lights I was running with no shirt on pulled my phone out and while I was jogging literally said hey guys I've got a deal I need to raise some money by this Friday. If you're interested, let me know. I got over 400 DMs. Come on. Over 400 DMs, I built an entire list of potential investors for future deals and I raised $4.2 million from my Instagram.

Oh my God, I love that. From a 13 second post I did jogging on the street. Now of course, the fall of conversations took some time. Of course. But I generated 400 people that just saw coal with no shron running on the street saying, hey, I got this awesome deal. If you want to participate, shoot me a DM over 400 people did it. So, so why I did thrive back to your

original question was I wanted to build a brand and it's interesting. If I told Gary, Hey, do you want to be friends? He'd probably be like, you're creepy, like, leave me alone. But if I say, Hey, Gary, do you want to come stand on my stage? And I negotiated in his contract that I could fly to New York and record 20 minutes with him, including in that. And this was 2014. So he said, yes to that. And so I just kept hanging out with him and on Thrive number two, I had Grant Cardone

come and I can't remember who chicken soup for the soul. Mark Victor Hansen. No. I'm going to be a him and an hour. Are you really? Of course you are. No, can Will. What's his name?

Can't. Well, John Maxwell. No, not John C. Maxwell. I'll remember it when it doesn't matter, of course. But regardless, I had some incredible people come and speak at my event. And because of their brand credibility, because of how important they were to society, and because they were promoting me and in their own Instagrams tagging me and saying that they were at my event,

that's how I built my brand and that's why I did thrive. I don't know if you know this, but actually it was in the limo from the airport with Gary V to your events. Oh, are you serious? For that first one? Yeah. Oh, that's hilarious.

I still remember clear as day walking in and like, he'm explaining the events and everything. That's cool. You should've spoke it, bro. Yeah, I didn't get invited, you know? Yeah, that's true. We haven't met yet. I just was in Vegas and Gary was in Vegas.

I want to say one more thing about that though. For anyone who's listening and even considering throwing a live event, everybody who's significant in my life right now has come from thrive. I can't find a person that I'm doing life with or doing business with that wasn't already in my life, of course, that didn't come from thrive.

For instance, you, I met through Tilope. I met Tilope because Maya, his right hand, reached out to me and said, Thrive looks cool, you should have Tilope as come and speak at it. Another time, this was 2015, I was like, who's Ty? I saw his garage video or whatever, and I was like, oh, that guy. But as you know, Ty and I became friends,

he spoke of my event, he asked me to come speak at his event where you and I were on a panel. Did you know that? Who's this really smart guy? This is at the end of the panel right now that's saying things that I'm learning right now on stage. And so I met you because of Ty, but I met Ty because of Thrive.

So every single person is either one, directly connected to Thrive or one person removed for it. So I can say the Thrive has literally made me tens of millions of dollars above my brand because of all the opportunities. And stuff, I mean, you and I have made a few million dollars together now

because I met you because of Thrive and you're just one person of many that has come. Why is it important for people to attend events, seminars, business, conference, and networking? Because relationships are everything. Your business partner, Joel, friend of mine, is wearing a hat right now. It says rich in relationships. I don't want to freaking take it from him. You know, there's all those cliches, your net worth, or excuse me, your net worth is equal

to your network, and you are the average of the five people you hang out with. And we hear that so often that it doesn't really resonate. I don't think it's, it's, it's like so common that people don't actually stop for a second and process what it means. But you are, who, who you have access to completely dictates your future, not just from my deal flow and the opportunities, but the quality of life I want to experience is directly impacted by the people who I'm around. So building your network and networking is important. So back to your question, why should people come to live events? Virtual events are convenient.

They're super great. You and I have produced virtual events together. I got none but love for those, but you can't network in the same capacity that you can at a live event. And I'm old fashioned in the sense that I would way rather do things in person. Yeah, exactly. When it comes to certain meetings, like you, most meetings should be an email.

Absolutely. And it shouldn't exist at all. But some meetings, especially really critical ones, just have to be done in person. There's something about that in person. And so even though in a virtual event, you've got the chat rooms and maybe even some breakout rooms where you can kind of quasi meet people, there's nothing like looking at somebody

in the eyeball, shaking their hand and having a conversation with them more in your case, your events, meal, because you feed us every 15 minutes with somebody and getting to know them. So I think that everybody should attend live events with an intention. You don't just show up to a live event and wait to see what happens. You have to set your intentions at a time. You need to say, I am going to go and raise the money I need for this deal. And by having that intention in your mind of why you're going to this event ahead of time,

you can usually make it happen. Or your intention could be, I'm going to meet six new people in my next business partner, whatever it is, right? I mean, we're at an event right now as we're recording this podcast. And I literally just watched two people in my breakout room who were the exact pair that needed each other who are now gonna go do a business deal together. Yeah, having right in front of my face,

those two would have never known it. And they were at the same event. They wouldn't have known it if they weren't in the same breakout room, right? And so it's super important to get to live events, to shake hands, to have conversations with as many people as possible because your next business partner,

your next spouse, your next lender, your next person that's gonna bring you your next deal is at that conference. So let's go a level beyond the live events. What about masterminds? You know, there's 50 to 100 people and most masterminds, masterminds range from 10K, 20K, 25K is kind of the average.

The one here is $100,000. Yep. It's all relative to situations and there's a lot of niche masterminds with real estate niche e-commerce niche Yeah, etc. Why do you think it's important for masterminds that are very expensive and maybe a big risk for someone to pay 10k 20k 30k Etc to join why do you think masterminds are important to take that risk at some point when they can afford to jump in? So I would say depending on the mastermind It's super important because I have seen and been asked to speak at other masterminds

where I know for sure I wouldn't personally get any benefit from them. You're super careful to curate your attendees and that's what I want to say is important. So for people who are considering joining a mastermind, make sure that there's some sort of an entry barrier, that there's an interview or something to make sure that all members are quality candidates. Because when you go to a live event, you don't necessarily care who else is in the audience. You just assume because there's a volume of people that the right people for your connections will be there. But in a mastermind, you're really joining for the members.

Mastermind hosts like you and I will bring in incredible speakers to curate conversations and to create thinking, right? To get people to start thinking differently. But the real value is in that community. So I would say the first thing that's important, even before we talk about why joining a mastermind, is making sure that you're joining a mastermind where the host or the owner of the mastermind

is curating their attendees to some degree, there's some sort of a qualification to get in. Now let's just assume that that's the case. Now you're sitting in a room where every single person has earned the right to be there. And so not only are the speakers on stage incredible, but I get more value, I mean, you bust your ass to put really quality people on your stage,

I get way more value hanging out with your friends. Like I was just hanging out with Trav for 20 minutes, dude. That guy blows my mind every time I'm around him. And so, and he's not even a speaker this week, and he's just hanging out. And so he was just blowing my mind with NFTs and his watch and everything that he's got going on. And so I personally usually get more value

from the conversations I'm having with other mastermind members than I do for me even the speakers. And so going to live events is important to shake hands, to have conversations and to hear from stage content, but masterminds are important to learn from one another. And so you're being put into a room where every single other person is up to big things,

theoretically, again, if you join the right mastermind, and it levels up. And that's the last thing that I think masterminds do for me personally, is they encourage me and they inspire me. The way my parents raise me, the way God wired me, however you want to say it, when I see other people's success, I get motivated. Thank God I don't have a cell on my body that has envy or jealousy. The more and more I see you succeeding, the more I elbow, son, and say,

look at Dan, look what he's doing. I could do the same stuff, right? And so masterminds really fire me up because I'm around producers. And again, another reason why it's so important you join a mastermind that has some barrier to entry because I don't want to be the only person that owns a business.

I'm like, hey guys, I'm stuck at $10 million. I want to scale to 20 and everyone's like, oh, I have a job at Target. How are you going to help me? I want to be the biggest loser in the mastermind always, which for me is kind of easy to do sometimes. But legitimately, I want to be the biggest loser in the mastermind so that everyone I go to

has the solutions to my problems. All right, so we talked about investing into yourself. Let's talk about investing into real estate. Yeah, you've done, I don't even know what the heck the number is, a lot of flips, lots of investing in flips, you know, fixed flips, investing in rental properties, and doing some high-end flips, you know, one million dollar type, two million dollar type houses, etc. Walk us through when someone's trying to research and figure out whether they should invest in a fixed flip or a foreplex or a single family house or apartment building or commercial building.

There's so many options. How can someone learn about real estate before they make a decision? So there's two types of income in real estate. Well, there's three technically, but there's active income and then there's passive income, right? And then there's technically interest income. That's lending money. We'll talk about that later.

But when it comes to passive or active income, you need to decide what type of investor do you want to be? Do you want to be an active dealmaker like I am where you're making offers, you're buying houses, you're renovating, you're flipping them, you're wholesaling, you're buying apartments, you're doing value ads, or do you want to be a passive investor where you're just parking money and essentially forgetting about it, just working with a property manager at that point. So that's the first thing that people need to decide. Once they've decided whether they want to be active or passive, like I just kind of described, there are dozens of strategies within them.

Within active investing, there's 30 different things you can do in real estate, as well as within passive as well. And then the last thing I would say is what financial position the person that wants to start investing in real estate is in. For instance, you're not technically a real estate investor even though you own a bunch of real estate now,

but you are in the financial position where you can be a bit riskier because you can afford to take a loss right now versus someone who might be in their mid to late 20s, early 30s, who's about to do their first deal that if they do it wrong, it could completely take them out. I mean, you're in the position right now where you could completely botcha deal, lose all your money, be pissed about it, learn a lesson, and just move on in your life. And so I think that it's important for people to evaluate what their own risk tolerance is and what money they have the ability to lose. I think that it's an important lesson that one of my early mentors taught me is only invest money you're willing to lose. And even though

real estate is a very safe and tried and true asset class, only use money you can afford to lose. And if it's money you can afford to lose, that should dictate what type of deals you even have the opportunity to participate in. It's based on what type of money you can afford to lose, that should dictate what type of deals you even have the opportunity to participate in. It's based on what type of money you have to allocate towards. So let's walk through a real life situation. You find a $500,000 fixed-and-flip house. You're going to put 20% down on average. Let's just call it that $100,000.

Walk us through the process of what is interesting. If you're going to buy a house for 500K, and then you're going to put X amount of dollars into it, how much do you want to sell it for? What type of percent interest? Like, just give us the main idea of what a 500K fixed inflip would look like that makes you interested. Yeah. So, for me personally, I live in Southern California where real estate is way more expensive, margins are thinner, but because it's expensive, it's still a decent amount of money.

So, my goal is to net 10% of my total capital allocation. So, if I bought the house for 500 grand, but then I had to put $100,000 worth of renovation into it, let's just say. So I'm going to for 600 grand. I have to be able to sell it. And after I've paid my realtor fees, closing costs, carrying costs,

all the interest borrowed on the debt, assuming I had it, all that good stuff, I need to make a minimum of $60,000 for net net net, for me to even look at it. And that's in California, right, where we have much thinner margins across the Midwest. You can buy deals that pay you 20, 30, 40%. So for me, my net net net needs to be 10%. So it doesn't necessarily matter what what the number is. I could buy a house for $4 million and put two million into it. If you know it for six million, well, then I need to make 600 grand minimum to do that

deal. So that's kind of my walk away point is anything single digit returns. Doesn't make sense to me because I have other things to park my money in. And so for me, I'm bullish on real estate, but I will park my money where it's going to be treated the best and come back to me the fastest. And so I can lend my money to anybody and charge them 10 to 12%. I'm a private money lender. And so a lot of even your students here in this mastermind come to me and ask me to help fund their deals for them Well, I had a minimum I charged 10% So if I'm gonna do a fixed inflip that's gonna pay me 8%

I'd be better off to just loan that money out to you and forget about it Don't know work at all and make 10% so the fact that I know that I'm a lender the fact that I know that I understand the lending business and how to Underwrite deals and risk tolerance again and all that stuff because I'm an active lender that gets no less than 10% or else I just won't lend you my money, then every deal I do kind of has to make 10% or more, otherwise just doesn't make sense to do it. So someone's considering a fourplex and they want to live in one unit and rent out

the other three. How's that, King, maybe? They keep reading about it, they hear about it, they saw it on a podcast, they saw a TikTok video, like get a fourplex, live in one unit, rent out the other three. Does that concept work? Walk us through just a general idea. Works beautifully.

I literally just told someone to do it. He's here, he's in his 20s, he's like, Cole, should I rent at this age or should I buy? I said, technically both. You should buy a 4plex, rent three of them out and live in one for free and probably not only have your bills covered, but cash flow. And so the way that it works is pretty, pretty obvious. You would buy a multi-family, so like a duplex, triplex, fourplex, right? If you get to five units or more, you're now in commercial financing changes and a few other things as well. So

I would recommend doing a duplex, triplex, or fourplex to get started. You move into one unit, and you rent the other ones out. And if you want to, you can hire a property manager, so you don't even talk to those tenants. If you want to manage it yourself, you can property management for a residential property like that would range like eight to 10% collected rents. So it's not too expensive. They're doing all the work. You're still keeping 90 to 92% of the rental income. But in a little duplex scenario like that, if you only have one or two other renters in a triplex, then you could probably manage it yourself. But that's the point. And I think it's an incredible strategy. I think that house hacking is how everybody

should buy their first residence. Now, when you get a little older and you make more money, then you don't necessarily want to share your home with other people and you have a family and kids. But, but honestly, house hacking is a smart strategy for anybody. So let's walk through real life math. The fourplex, let's just use 500K as the example.

And maybe it's not California, but let's say it's 500K for this fourplex and You're living in one unit the other units are like 800 bucks a month a thousand bucks a month 1200 bucks a month Whatever that number is walk us through like what's the actual like math kind of a main idea? So today is recording this interest rates have gone up So if you're buying the property you would have to secure long-term debt You're not doing a fix and flip so you'd go get a 30 or fixed you'd have to figure what that mortgage is And I can't calculate that quickly, but on a $500,000 mortgage, $2500 a month. Okay, you got $2500 a month.

The next evaluation or thing you need to evaluate is what's the rental comps for that square footage in that area for the quality of home that you have. So for instance, do you have crystal chandeliers or is it more rental type? Right, so depending on what you've done to your property, what it looks like, how it compares to other properties is called comps, you then going to get what are called rental comps and you'll know what it is. So I know you're a math guy and you want me to give you math, but it would change if I moved 30 miles in one direction.

Right. So what you need to know is, depending on what your purchase price is, what are your total carrying is, depending on what your purchase price is, what are your total carrying costs? Total carrying costs. And be very careful not to throw my lenders under the bus, but what you qualify for and what you afford are two very different things. Anybody who's considering purchasing real estate right now, a lender will tell you what you

qualify for. That does not necessarily mean what you can afford. You need to also keep an account that you're gonna have taxes, insurance, maintenance. Your tenants are gonna clog their toilets, there's gonna be issues. So do not max yourself out. So the first thing you do is, if you're evaluating a property,

figure out what's gonna cost you on a monthly basis for your debt service, your taxes, your insurance, and then set aside five to 10% minimum for maintenance, okay? The next evaluation is what's that rental income going to be. And it might not cash flow off of one or two units. You might need to go all the way to a fourplex where you're renting all three out to make that cash flow. But again, you know, usually duplexes are three-bedroom two-bath, two-bedroom one-bath, two-bedroom two-baths, type scenarios. So they should be pretty affordable. They're not, you're not going to get rich off

of this. The idea is to either live for free or live with a little bit of money in your pocket. So I would say house hacking definitely isn't how you become a multi-millionaire, but it's a great way to own real estate that costs you nothing, where you still get all the appreciation, depreciation benefits, and that staple in your portfolio that when you're done with it, you can sell it in 1031 exchange and an external or whatever it is. So I wouldn't worry as much about the numbers. It's more about the ratios. At what ratio is the rental income,

gonna service my debt, my carrying cost. And even if it's running a little bit of a negative, I, so this is, hear me out before anyone out there judges. I would usually say you never buy real estate that is a negative cash flow. But if this is your primary residence, well, okay, and then you're living in it, then instead of it costing you $2,500 a month, maybe it's costing you $400 a month, which I would say as a passive investment, that's a bad investment because it's costing you $4 a month. But if you're living there, well, that's still house hacking.

Yeah, you're saving $2,500 a month exactly. Yeah, exactly. Okay, I've watched you evolve over the years after going flipping so many houses and doing some big houses in Orange County. I saw you flip a million dollar house, the two million dollar house, et cetera. You also started recently buying land. Yeah. And like, Arbiteria, I bought it for four million,

sold it for eight or nine million, like walk us through just like a main idea of why you started buying just dirt. So I learned about something called the land entitlement strategy. And it is, in in my opinion and many people's opinion the most lucrative form of real estate investing that's out there as far as how much money you can make in profit for how much time energy and effort you put out. The skinny of it is you identify land in developing areas so we're currently sitting in Phoenix, Arizona as we recording this podcast. And this is one of the markets I'm investing in. Phoenix is booming right now. And Phoenix is in the middle of the desert. So there's like an edge of where the city's growth is where it just turns into sticks, rocks, and coyotes, right? But that growth will continue to go outward,

like ripple effect, like it does in all areas. You and I live in Southern California, it's completely built out. There isn't really any more raw land just patches here or there. But so we're targeting areas where there's growth. When cities plan their future progress, their growth plans, they do what's called zoning and they zone certain areas agricultural so people can have farms, they zone certain areas residential so they can build houses, they zone other areas commercial so we can build things like restaurants and strip centers, et cetera. And they kind of guess what they think would be a good ratio spread out. And however, you know, they want to do it. This could have been 50 years ago that they did this.

Well now fast forward and the city has grown around an area. And so we just put it in offer for 4.7 acres in Chandler, Arizona, for $2.2 million. It's currently zoned residential. It's in the middle of a bunch of houses. This will be a great example to teacher listeners what land in Tottenham and is. It currently zoned residential. It's in the middle of a bunch of houses. This will be a great example to teacher listeners what land in Tottenham is. It's zoned residential. It's in the middle of houses. So right now, if you look at it on Google Earth, it's this little square patch of dirt in the middle of endless houses. Why would you want to put more houses there? The closest Starbucks or Strip Center is a 15-minute drive from those

areas. So what we're doing is we're changing it from residential through this entitlement process. It'll take us about a year. We work with the various municipalities, so the cities and counties and we say, Hey, guys, is this cleared to build houses on it? We want to change it to build a strip center here. You need a Starbucks, you need a grocery store, you need restaurants, you need whatever, gas station, exactly. And so we will work with the county. we will spend about $200,000 worth of legal fees. We won't touch the dirt. We won't even pull weeds. And they will change it so that it was no longer zone for residential, but is now zone for MU mixed use, which is what we want to do here, put in some eateries and things like that. And we estimate, but based on comps, that by doing that, the land that we purchased for 2.2 million, that we then put 200 grand in do. So we're all into it for 2.4 million is going to be worth 5 to 5 and a half million dollars.

So we're going to double our money just doing paperwork. Now your listeners might say, that sounds too good to be true. Well, let me tell you about the one we already did. We bought land for 4.2 million dollars in a place called Bloomington, California, and we sold it, or excuse me, bought it for 4.2, put about 300 grand in the entitlement. It's taken 13 months and now we've sold it for $9.5 million when all of the dust settles, all the real tears are paid back, or not paid back, excuse me, paid their commissions, all of the lenders are paid back and everybody's done.

We're going to net, net, $4.7 million on a piece of dirt I've been to once, but I never removed a single weed from, haven't touched, haven't done anything to. We just changed what the legal use of that dirt could be, and we're making 4.7 million net, net, net on that deal. And I know it's for sure, because my business partner Joel invested with you. Yeah, he's one of my lenders on that deal. Yeah. Okay. So we talked a bit about making money side. Now we talked a bit about investing money side. Walk us through how you make decisions, because you could invest into ever- you make decisions because you could invest into

ever bull restaurants, you could invest into sports card businesses, you could invest into real estate, you have options, how do you decide amongst your capital where you want to deploy it? So again, and for me, I'll answer for me personally and then I'll do a more broad answer. For me personally, it totally depends on what's frustrating me at the time. I have most of the opportunities that come to me are active deals, where I've got to be involved in them and they'll make millions of dollars in its grade, and that's how I pay for my bills and feed my family. But what I'm more interested in right now are passive income. And so, for me, I'll pass on a deal that would take my time and make less money right

now on a deal that would cost me no time at all. That makes sense. Really, what I'm looking for right now are passive opportunities like Ever Bull, where I can park money and not need to be an operator and not need to earn that money twice. What I did in my early investing days that I made the mistake for is I would go make money a thrive and I would earn that dollar and then I would put it in a real estate where I had to work that deal and I would have to earn the same I would put it in a real estate where I had to work that deal

and I would have to earn the same dollar twice, if that makes sense. I don't wanna do that anymore. So for me personally, how I'm evaluating deals is literally like the mood that I'm in. Do I feel like having to work this deal right now or should I take that money

and put it into something passive? So it's kind of unique to my situation for a broader answer that might be more applicable to the listeners. Again, we're gonna go back to risk tolerance. What can you put your money in that you're going to be able to sleep in at night or sleep, not necessarily in, but like you're going to put your money out there and not lose sleep because you're so concerned about what your investment is doing.

Investment thesis is important. What's your investment thesis as an investor? What do you think is the best use of your money and time based on your relationships and your own experience? That's important. And then like I said before, what type of money do you think is the best use of your money in time based on your relationships and your own experience? That's important. And then, like I said before, what type of money do you have to lose? That's super important. I don't want to scare people, but you do your due diligence, you underwrite your deals,

you make sure that it has the highest probability for success, but there's always risk, there's no such thing as no risk. So be careful what money you're investing. All right. For the third segment, we talked about giving it away to charity. So you created this make money matter and you started working on four-purpose companies and doing good while doing good. Like all these great phrases that are burned into my brain, walk us through why you make money matter. Why did you literally name your events and nickname the whole headline is make money matter.

Yeah, talk us through it. So I got started in real estate in 2005, 2008, the recession came and almost took me out. I mean, I was losing, hemorrhaging, very crazy. My girlfriend at the time and I broke up, which I then married her. So I got her back. Yeah, but at the time it hurt. And so here I am running a business that is failing in the recession.

I didn't know how to make money in a down-and-market. Anybody can make money, like everybody made bit money. Everybody made money in Bitcoin when they bought it at three grand and I went to 20 or whatever. I remember they were all coaches, all of a sudden or whatever, but when things are going down, that's hard. And so for me personally, 2008 killed me. And I slowly lost my through 2010,

moved down to Mexico became a missionary, because that's what you do when you can't make money, and where you just become a missionary, right? True story, I lived in Mexico, I built houses for a homeless family, and I ended up founding an orphanage down in Mexico. I found a couple down there, and they were trying, and it's just long story short,

for the Sega this podcast, we started an orphanage in 2011, and it's freaking incredible, and I still have it to this day. Well, while I was down there, I was living off what savings I had left from my real estate heydays, right? I had probably 20, 30 grand when I moved down there

that I was just living off of, and because I was a missionary, it was lasting. But once I founded this orphanage with this other couple, I was completely funding the whole thing and I was running out of money. And I got to this critical place where I knew I had about 60 days of money left until I was gonna be broke.

And then I wouldn't be able to take care of these kids anymore. So my first thought was I need to go back to America. I need to start a nonprofit like Modelsys and Fun or whatever. Start a 501c3. Find wealthy individuals like yourself, ask you to donate to me and hope that I get enough donations I can continue to run my charity. But having been an entrepreneur and already making a bunch of money in real estate, it just didn't feel right, just asking money for people for money, right, for charitable

donations. So what I decided to do instead was go back to my roots and start businesses. And I was like, you know what, I'm just going to become so successful in business. I'll set some money aside for the orphanage, right? Well at the time, this was 2010, Tom's shoes was blowing up at the time. And I saw this model, this business model model where for every pair of shoes he sold, he gave a pair away. And I was like, that's it.

This isn't just charity. This isn't the founder getting rich and being generous. In the business model, they give back. That's what I want to do. I want to go back to America and run businesses instead of asking the damplishments to just give me money. I'm going to run businesses that give back. And then I stumbled across it. My mom was asking me what I wanted to do. And I was like, I don't want to just give me money, I'm gonna run businesses that give back. And then I stumbled across it.

My mom was asking me what I wanted to do. And I was like, I don't wanna just make money. I wanna make money matter this time. And that's where the saying came. I remember literally where I was sitting at a nectar juice, chinking a green juice when I thought of it for the first time. And I ever bolded and exist yet.

I was out of binnett ever, of course. But bottom line is I said I wanna make money matter. And I created this concept of four purpose businesses, like Tom Shoes didn't even know that they were in this category. They're not a standard four profit because they don't just make money, but they're not a non-profit because they do make money. There's something in the difference.

They make money and they make it matter. So we call that four purpose organizations or four purpose business, excuse me. And so that's what I did. I came back to America. I started my fixed and flipped business again with my dad. I was flipping houses. I was making a bunch of money,

but I was making it matter because our business is now for purpose. And all of the businesses that I've started since are all for purpose. And friends of mine started kind of talking a little bit about it, and I would share a little bit on podcasts. This is like 2012. And this is how Thrive was born.

Was 2012 and 13 as I'm now building my businesses and they're all for purpose. And by the way, they became phenomenally successful. I had never made a million dollars in a year ever. Prior to this, became a for purpose business and haven't made less than a million dollars since. Interesting, right? When you get a Y and connect it to your business.

So start making big money, start giving back, start talking about on podcasts. I got a bunch of people that were asking for help. So that's what made me first throw thrive, make money matter, and bring in the Gary Vaynerchuk's rubber herchifex, like we talked about, because I wanted to actually teach the four purpose business model.

And I'm proud to say we now have thousands of four purpose businesses that have put out tens of millions of dollars with charitable contributions and have completely changed a bunch of the things in the world, and I feel like we're just getting started. and so back to your original question, how did I come across it? I just needed to feed my kids in my orphanage and I didn't want to ask people to donate. I wanted something that was sustainable and so I wanted to start businesses that gave back and so again for your listeners, I would encourage you to look into the the for-purpose business model

selfish plug if you just Google call how to Ted X talk, I do an 18 minute talk on how to become for purpose. So that's free. You can find that on YouTube. But for the for purpose business model, I think is going to be the future of commerce. I think that with consumers, the way that they are, they're more touchy-feeling now than ever.

They have this expectation on business owners to give back to not just make money, but to make money matter. And I think that hopefully with you and I and others influencing the markets that we can completely change the way that businesses are ran, where consumers just expect them to be for purpose or they won't spend money with you anymore. Well, inside this casino, we have 140 people waiting to play a charity poker tournament for your orphanage right now. So follow you guys listening Make sure to follow at co-hatter on social media, especially on Instagram

You guys got to check out the things that he's doing what he's building with the orphanage He likes to showcase his life his family his events etc and everything between We all grew up thinking it's rude to talk about money And you guys have heard me week after week after week so passion, want to have these discussions with people that make money matter, with people that talk about money openly and bluntly because it's not rude to talk about money. We need it. You guys have to have these conversations about salary

and loans and FICO scores and credit. And everything that comes with apartments and leases and what should I rent or buy? Like, you've got to have these discussions. You've got to study it. You've got to search on YouTube. You've got to watch videos, listen to cool people like this, go to events, talk about it with your friends, family and followers.

Come watch with us, we have the moneymundays.com, we go live every Monday at 4 o'clock and have live Q&A sessions. Obviously the podcast share with your friends, comment, like, subscribe, all those things, because we want to have people that have these discussions, it's so important for our country, for our society, we need you guys to make more money, we need you to have more discussions, we will see you next Monday. Talk to you guys soon.