The Science of Flipping - Real Estate Strategies, Adaptability, and the Path to Financial Freedom | Sam Primm

Starting point is 00:00:00 What is up everybody on Science of Flipping? Welcome back. I'm your host, Justin Colby. If you're watching this on YouTube, make sure you subscribe. I have another incredible guest with me right here on the Science of Flipping. Mr. Sam Prim is here, a baller, real estate investor, someone that is ahead of me in the rental space. And so I'm chasing his ass down, trying to catch up to the single family doors he has. But we want to talk all about what he's built, how he's built it, where he's at now, and where he is going with this crazy interest rate nonsense. So Sam Prim, what's up, dog? What it do, what it be, what it is. I'm excited to get rocking and then jam with you for a little

Starting point is 00:00:35 bit, man. Let's get into it, bro. Listen, obviously, we could physically be brothers. We met just a short while ago in a mastermind. We're part of a mastermind together. So first thing I'm going to bring up to everyone listening and watching this, your network is your net worth. I don't care what you say. Sam and I clicked immediately introduced by a mutual friend, but we've been talking, I don't want to say daily, but pretty much like that since a month and a half ago. And I'll tell you, if you can get around Sam, if you can get around me or just level up your network, you'll always do better. So that is the first and foremost. And so let's talk about big debt energy, dude. You know,

Starting point is 00:01:09 and I know I'm buying two to five properties a week. I was just over at Tim Brott's event, speaking on his stage and people like, how are you dealing with the interest rates? And what about all that? And just peppering me with questions about the lending. And so let's talk about your business model and where you're at now. And how are you seeing this interest rate stuff affect you? Is this rated E or is this rated? Is this rated? Oh, we're going F, bro. Throw it around. Okay. I can't live it. So I have a lot of thoughts on that, Justin, and feel free to interrupt me. I will try to not go down too many rabbit holes here, but I am not going to let something external decide if I'm going to fucking create wealth or not.

Starting point is 00:01:46 I don't care what they do with interest rates. I don't care what inflation happens. I don't care what wars happen. I don't care what happens. I'm going to figure it the fuck out. The people that think you need tailwinds to be successful are the people that are not successful, at least not for a long time. Yeah, interest rates are high.

Starting point is 00:02:04 Get the fuck over it. Do midterm rentals. Do short-term rentals. Do creative financing. Wholesale a little bit more. Flip a little bit more. Take that money, put it down, buy down the rates. Figure it out. It's not going to be like it was from 2019 to 2022 ever again in our lifetimes. If it is, that means a lot of really bad things have happened and potentially trying to figure out, navigate things is going to look completely different anyway. If what most likely is going to happen is going to happen, you're going to have to get creative and figure it out. So in general, we can get into the tactics that I'd love to get in the weeds with you. I want to open it with, I'm not going to let somebody else decide if I create wealth or not. I'm going to take what is given to me. And fortunately my vehicle is real estate, right? So in real estate, bro, I got like 30 levers to pull, throw something at me.

Starting point is 00:02:50 I'm going to pull this lever, throw something at me. I'm going to pull this lever. When you're in the stock market, when you're in crypto, when you're trying to save your money, you got one, two levers max. I'm in real estate. So I have unlimited, unlimited levers to pull. So in general, I'm just not going to let somebody else decide how I'm going to do it. Is it going to look different? Yes. Am I going to adapt? Yes, but I'm going to figure it out. A hundred percent. And what I'd say to you is I put a post up yesterday about people whining about seven and a half percent interest. And if you go check out my Instagram, all of you guys should, if you're listening to this, the Justin Colby, I literally put this post up comparing if you have seven and a% interest or 6.5%

Starting point is 00:03:27 and you're going to wait for the interest rates to come down. But because we're in a lack of inventory and values are increasing, you'll actually pay more with a lower interest rate a year from now because you'll gain 5% or 10% valuation on equity and you're going to pay more monthly. But the normal people, they literally go tit for tat. Oh, I you're going to pay more monthly. But the normal people, they literally go tit for tat. Oh, I don't want to pay a seven and a half percent interest rate. I'm going to wait to six and a half. And you and I are cut from the same cloth. That's why we connected. So like irrelevant, right? Irrelevant. It is not even something that you and I think about at the level we play because it's a economics. You have

Starting point is 00:04:06 a spreadsheet, I have a spreadsheet. If it fits our buy box, we say, all right, green light, right? That's it, right? And we make some assumptions. I'm making, right now I'm making 8% assumptions on a loan, right? And if it fits the buy box on that, I move forward. Why? Because real estate is the very best vehicle to increase a massive amount of richness, but wealth. And that's why you and I are in the game. By the way, I'm going to make the point. That's why everyone should be in this game. Not to go make quarter million, half a million, a million dollars a year. It's so you can accumulate wealth. And who cares about the interest rate? That's irrelevant. Yeah. A diversification is fine, but most people

Starting point is 00:04:44 don't have enough time to properly diversify. So if you're going to have limited time and you're going to focus on one thing because you're busy, you have kids, lives, family, whatever it is, you need to focus on real estate. That needs to be the one thing that you I never cared about cashflow. I didn't care about it when it was cashflow and great. I don't care about when I'm cashflow and less. It's all about that wealth creation. Real estate doubles in value every 15 years, like clockwork, like math, it doubles in value every 15 years. So that means my $250,000 property right now is going to be worth a million dollars in 30 years. And that's just one property. I'm going to have it paid off. So I'm going to have every property I buy, I'm going to have a million dollars in 30 years. And that's just one property. I'm going to have it paid off. So I'm going to have every property I buy, I'm going to have a million dollars in 30 years. So I just continue to keep stacking that up. Plus the tax benefits are not talked about near as much property growth, debt pay down. But like I, I didn't pay taxes in 2022 and I had a very, very good year. I should

Starting point is 00:05:38 probably stop saying that in public, but come at me. I'm not super, we did everything on the up and up. Nothing was sketchy. So there's just so many benefits to real estate that that just needs to be your focus. And don't worry about the marketing conditions. There's always a way to be agile and hostile and mobile if you understand the methods. Come at me, dog. By the way, the reason why I'm looking down for those that are watching this, I literally have one of my business partners in a rental portfolio found a image that shows the last 50 years of interest rates. 50. And I don't want to misquote it, but it is insanity that people right now are losing their minds over the interest rates

Starting point is 00:06:17 when you historically are looking over the last 50 years. We are like at the lower end of interest rates. The lower. You guys are hearing me right. We are literally at the lower end of where you can be. When you break into the sixes, that is over the last 50 years, at the lower end of where interest rates have been historically. So I think to your point, which every 15 years, what is it? Every 15 years,

Starting point is 00:06:46 real estate doubles in value. So if you, now let's talk about what type of real estate you're buying, right? I obviously follow you and we communicate a lot. So I know more than people who don't know Sam Prim. First of all, shout out to Sam Prim. If you don't follow him now, make sure to go follow him immediately. Go to his social media. What's your handle on Instagram? Yeah. Sam faster freedom type in Sam criminal pop-up, but Sam faster freedom is the handle and anything that he has. If he's driving you there, this man is a wealth of knowledge. He's a go giver. He will help you in any way. So make sure that that happens. But you know, where are you? Well, let's rewind. Where did you start? What was the model when getting into it? Where are you today?

Starting point is 00:07:28 Yep, for sure. So when I started, it was 2014, 15 timeframe. I had a, you know, a W2 job, you know, like most people. I was on that path that pretty much everybody was on, you know, go to college, you know, party a little bit too hard, get a good job, trying to figure out how hard you have to work and then start to gain some momentum at that job. That's exactly where I was. But I started to invest in real estate on the side. At that point, I had been paying off some student loans and things like that and had a little bit of money in the bank, but not a ton. And I wanted to buy rental properties because I knew that rental properties was a way to create wealth. I'd read Rich Dad, Poor Dad, just understood assets and things like that to a limited degree. So I started to do that a little bit. And, you know, I didn't have enough money, but 20% down. So I said, I know if I can borrow money to flip a house, then I'll just take that profit and put

Starting point is 00:08:12 20% down. So that was my goal was to buy 10 rentals in 10 years, but I'd have to do a flip a year to get the down payment. I mean, I did that. But during that first process, I learned about the refinance, the Burr's Method. So I ended up keeping that very first property, started to really like the fact, holy crap, I own this house and I didn't use any of my own money to do it because I use the Burr's method. So then I started to do that and repeat that and scale that and started to get some money. But I quickly saw that if I wanted to scale and I wanted to quit my job, I couldn't just do that from cash flow from rentals. That's what most people think. It's just not realistic. So to make a long story short, I started to fix and flip and wholesale a little bit,

Starting point is 00:08:47 quit my job in 2018, really, really went all in on this thing. And now I'm sitting at about 46 million in real estate owned that I literally bought without using a dime I own. I mean, that's not like a clickbaity thing. 46 million, none of my own money. We flip about 250, 300 houses a year here in the St. Louis market. And then I have the online social media education stuff. But the basis is the flipping company in the rental portfolio. And that's made up of about 150 single family houses, six apartment complexes, some self-storage facilities. I know exactly the number. That's good and bad. I haven't been inside my past 50 rentals, so I don't know the exact number, but we're around 300 rental units. So you and I have a very similar path. You're ahead of me in the rental department. That's why I kind of opened up by saying that. But my model is fix or rent,

Starting point is 00:09:38 right? Meaning I play under, and I'm assuming you're doing the same thing. I'm playing under a $250 or $250,000 ARB. The reason why my model runs that way, I have opportunity to fix it and flip it when you have an opportunity to make a good rental. And so either way, when I buy that home, I'm going to have options on what to do. Great example today, we got an offer on one of the properties that because of our quoted loan at eight and a half percent, it was only going to net me $132 a month net after property manager taxes, fees, blah, blah, blah. And we try to hit the $200 net mark to justify the brain damage. And so it didn't. And so we just looked at the equity play and we said, all right, well, if we can sell it for the number we want to,

Starting point is 00:10:21 then let's just go take the 35 or 40 grand or so and flip it, right? Because I would rather 35 grand now and go buy two rentals potentially than not. And so, by the way, fun feature for all of you. If you want to just go follow me and have fun features, maybe a double thumbs, we're going to get, I just got all the good features. Are you using your iPhone as your camera? Is that why it's doing that? Peace sign, balloons, no big deal. Sam gets to know me. No, I have, I'm using a Sony fancy camera. Okay.

Starting point is 00:10:59 But I have some cool features that apparently no one else has. The double swams I think does something cool. I don't know. There you go. See, I just, yeah, get to know me, Sam. Get me on that game, my man. Get to know me. So that was a fun sidebar.

Starting point is 00:11:11 But I say all that to say, would you say that that is your model as well? By the way, I bought my first self-storage unit in January. None of my own money. Every home I have bought, every flip I have bought, every rental I have bought, none of my own money. But let's talk about price points, markets, why your market, what are your price points, that kind of stuff. Yeah, probably pretty similar to yours. And not every market works for every strategy, but in every market, there's a strategy that works. So obviously out in California,

Starting point is 00:11:42 in those places, you're not going to be able to do what we're doing. Cost of living, taxes, expenses, horrible laws, those kinds of things. So my price point is pretty similar to yours. Most of the rental, the single family rental properties that I own are in that price point of, I'd say probably the ARV is like 175 to 300. So probably pretty similar to yours. It's gone up. St. Louis is my market that I own and invest in. And, you know, St. Louis has been great. I think, you know, it's gone up. St. Louis is my market that I own and invest in. And St. Louis has been great. I think it's gone up like 5% to 8% month over month. So we track every month, all the stats, everything. So every month over month from 22 to 23, now we're at the end of 23, it was at least like 3% or 4%. There's some months it was 7% growth. So St. Louis is still steadily growing,

Starting point is 00:12:22 unlike some markets. But in general, that's the price point we stay at. It allows you to cash flow. That's where the price point that renters want to be at as far as the size of the house and location. So it was just kind of that's where the rental market is. And much more expensive houses, a $500,000 house in St. Louis, there's a ton of them, but they're just not going to cash flow. What is your goal? And then how many actively buying a week or a month? So the goal now is to own a billion in real estate. Let's go. A bigger goal, a billion in real estate, a billion dollar annual company, and an MBA team. Those are the three long-term goals.

Starting point is 00:12:55 Right now we're buying, so last year we bought 312 houses. This year we're going to probably buy 250, 260, and we're not keeping as many as in rentals. I'll probably keep, I don't know, Justin, probably, I think, last I looked, I think we bought like 25 to 30 single-family rentals a year that we kept. The other, we wholesale, they're flipped. And we have a resort down in Branson, Missouri that we bought that's been, it's going to be like $1.3, $1.4 million construction project that's getting ready to be finalized. So that's kind of been a focus of a lot of our time and energy. What I think most people need to hear from that and what I extrapolated is he's not focused singularity on one single thing. It comes up with the

Starting point is 00:13:34 opportunity that arises. So for example, the property in Branson is a great property that he can spend a lot more money in the remodel, but it'll perform higher on valuation and he can go wholesale and fix and flip more of some of the single family homes. The idea though, is he's actively looking for the opportunity. And that's the next pivot that everyone needs to realize is his model and my model is all about finding the opportunities and not being in a rush to say, Hey, him and I have the same goal. I want a billion in real estate. He wants a billion in real estate, but I'm not in a rush. I will get there. He will get there because we're going to

Starting point is 00:14:08 keep our head down until we get there, right? Obviously as fast as possible, but it doesn't mean that we need to just rush the system in place, right? So just like me, I'll flip this property that we just talked about. I have no problem flipping it. I'll take my 35 grand. We just got an offer yesterday that's going to net me 35 grand and I'll keep going. I don't need that one single rental property to make or break the system. It's diversity in what we're actually doing. Is there a model that you try to choose on when you would flip something like rehab flip, not wholesale, but rehab versus rental? Is there something that you look at internally to say this is better for

Starting point is 00:14:45 one or another? Yeah, for sure. And to piggyback off that real quick, I think it's about, I've been playing with this in my head a little bit. It's about persistence and patience. It's a good mixture of both, right? Having the persistence, but having the patience as well. So I like that. I like literation a little bit. So it's kind of clever, but in general, we don't have super hard, fast rules. So our flipping companies, the biggest one. It's about 23 employees. And then they have six full-time buyers. And go ahead and buy it. And we'll flip it.

Starting point is 00:15:12 We'll fix it. We'll hold it, keep it, and flip it to sell it if we can make at least double what we can on a wholesale. If not, we'll wholesale it. And then we'll keep it as a rental, me or somebody on our team. We have 46 employees and 24 of them all own rental property. So a lot of stuff stays in house, which is really, really cool. But we'll either keep it or some of the house will keep it if we can get that 200 bucks a month cashflow to the same number you said. So we're buying it as cheap as we can with as

Starting point is 00:15:39 much equity as we can. All the houses will have at least 20, 30% equity when we're done fixing them up when we buy them. But it's about that cashflow number, getting it to that $200 a month. And if we can't hit that, we're going to go ahead and sell it to somebody else or flip it. And if we can, then us or somebody in the office will keep it. So you're at the same point. I didn't even ask you that. Are you at that, like, I want to net 200 or on a single family home? Yeah. Yeah. I think that's just industry standard. Again, this is going to be an episode you guys are going to want to rewind, listen to a lot. I mean, he and I run a very similar model. He's ahead of me on the rental doors. But if you're interested in real estate, you need to diversify. One of the things

Starting point is 00:16:13 that you're hearing from me all the time on these episodes, but also from him, he doesn't just buy rentals. He doesn't just flip. He doesn't just wholesale. He doesn't just stick to single family. He goes into storage. He'll go into apartments. He doesn't just stick to single family. He goes into storage. He'll go into apartments. And I think you're doing a hotel renovation into apartments, right? Yeah, we're doing a hotel. So it's like a boutique hotel in Branson that we're turning into short-term rentals. So hotel to hotel, but we're turning them all into the short-term rentals. And to talk about the diversification being agile, everybody's like, you have to do one thing. Well, I do. I go find distressed assets.

Starting point is 00:16:45 That's the one thing, right? That's it. Like I just have different exit strategy, but I'm not like chasing all these things and chasing my tail. So distressed assets is my one thing. And that apartment complex

Starting point is 00:16:54 talking about being at figuring out what the market throws you. We're going to be all in in that little hotel thing. I keep calling apartment that hotel down in Brance, Missouri, little boutique hotel. It's going to be super, super nice.

Starting point is 00:17:03 Like, hi, we're going to be all in that thing like two million. If I'm, I am, if I'm all in $2 million in apartment complex, like I'm going to net like probably like $10,000 a month, maybe. But with this short term rental with this, we're going to, we should be conservatively netting 25 grand a month. So it's just, how do you use your money? How do you use your equity? And having different avenues to get to that, the cashflow numbers that, I wouldn't be able to get that with an apartment complex long-term route. You've done this, how many years have you been in the game? Eight years.

Starting point is 00:17:37 Little seasoned vet. So I've done this 16. And what I tell for all those people that are just breaking in, just listening like, man, I want to go get my first deal. We are way further down the field, right? This isn't necessarily for you. What is for you is what he just said. Go be an opportunity seeker. Go find as many distressed properties, as many opportunities. Then you can sell them to me. You can sell them to him. And you can start to make and create certainty by getting your first wholesale check. This goes to the point that I just did. I did a solo podcast just a little while ago talking about this one factor is if you have a W-2, I do not want you buying rentals. I want you to create certainty around the business model. Go collect a check. I don't care if you wholesale

Starting point is 00:18:19 it for $500, $1,000, $1,500, $20, grand. Create the certainty that you can find the opportunity because from there you can increase your income. Now you have options and you can do this full time or even part time. But you've created certainty around this. What I see too often is a lot of people here, Sam Prim or me, and they have a W job and they go buy a rental, used all their own money, all of their savings, all of their nest egg. And now they're done and they're like, oh, man, I'm out of real estate now. I have a rental, right? They don't know how I raise money. They don't know how you raise money. They don't realize there's this whole opportunity with OPM and they just go buy a rental because they listen to this podcast. What I encourage you, and I'm assuming you would say the same, go find the opportunity first. Go make this

Starting point is 00:19:05 real to you. Go wholesale me or Sam or someone else, some properties, make more money. Then there's a way to build this out, whether you're following me or you're following Sam. Do you agree with my W2 point here? Because I don't think people, especially if you're going to use your own money, should be going and buying a rental. So, yeah, I know. I agree, but I'm going to take it a little bit left of a turn, more of a swerve than a turn. I think that you're piggybacking off what I said earlier, which is that, you know, you can't replace your W-2 income with rental cash flow. That's just going to take you forever. And it's not responsible to do that anyway. So I would say prove the concept. I like

Starting point is 00:19:51 what you're saying, but my swerve would be you can buy rentals with a W-2 job. Just know they're not going to help you get out of your W-2 job and just know that you're going to have to get active income. So you're going to have to do that wholesale and that flip that you mentioned. You're going to have to prove the concept, which I love. It's a great way to put it. And you're going to have to do that wholesale and that flip that you mentioned. You're going to have to prove the concept, which I love. It's a great way to put it. And you're going to have to do that to replace your active income because trying to get to $5,000, $8,000 a month of actual rental income from cash flow that you can take home if you're buying real estate with none of your own money is going to take forever. And even if you do, it's not responsible because shit does happen.

Starting point is 00:20:21 And you're going to have to, a couple of roofs or things like that are going to need to be replaced. No, wait, Sam, Sam, it's passive income, dude. This is like, you don't do anything. Yeah, no such thing as passive income. I wish there was. I thought there was for a while, but there's not. It's never passive. There are levels of the passivity, if that's a word, but there's no such thing as passive income. And then I think you can buy rentals. I would suggest buying several rentals with a W-2 job. You're more bankable. Banks would rather have a 90K W-2 job than 180K first year as a wholesaler. It's stupid. No doubt. So utilize that W-2 job, squeeze everything you can out of it before you quit.

Starting point is 00:20:56 Get a wholesaling, get a flipping kind of methodology going, but then buy some rentals so that you can start to create that net worth. start to get to that 15-year double in value. You got to buy it now, though, for double in value, 15 years. If you buy it five years from now, it's not going to double in value for 20 years. So you got to start that train as well. So let me interrupt you briefly. Would you suggest using their nest egg just to take advantage of what you're saying? Like, go now.

Starting point is 00:21:21 Don't use your own money. Go either make more from wholesaling and flipping, take that and then buy the rental. Or if you've learned from me or you to go raise money, private money, do it that way. Correct? Private money or shit. You can even do the hard money. A little more expensive. They're going to acquire liquidity.

Starting point is 00:21:38 They're going to acquire 10% down, but use your nest egg for that 10% down, that monthly payment to a hard money lender. And then when you refinance or sell it, you'll get that nest egg back. Don't ever leave your nest egg in a property if that's all that you got. So you can utilize it and be dangerous and be, you know, while you're finding a private lender, use hard money and just have a little extra points and fees, but you should get it back if you're in your numbers, right? If you're selling it or keeping it as a rental, you should get that money back. So use it, be dangerous with it. I would never just place it

Starting point is 00:22:04 in something long-term. And what you're speaking to is the Burr method, meaning you're going to get the money back. So let's clarify how that happens. Here's the thing. People out there right now are selling sub-two deals for like, oh, $85,000 down on a sub-two deal, $1,000 a month payment. I am never going to recapture that $85,000 netting $600 a month on rent because I bought a sub two because that's the popular thing, right? I have to create an opportunity to add value to the real estate so that I can refi as much of that money out, not just because that's a low interest rate. Now, if that same wholesaler would have said, hey, it's $10,000 down. Okay, now I'm in. Right now I have a reason to say, okay, I'm going to net

Starting point is 00:22:45 $600 a month. I'm going to go make my 10 grand back in, in a, under a five-year period, right? That's a 20% cash on cash return. You run the BRRRR method. I run the BRRRR method. Explain to everyone kind of your method when you're saying 10% down, you're going to get your money back when you're reified. Tell, tell everyone what you mean by that. Yeah, for sure. So just quickly do the Burr method. So yeah. So let's say I borrow $150,000 from Justin. He gives me 150 grand. I buy a house for 100,000. I write a check for the house and then I pay contractors the other 50,000. So I have 150,000 of your money in the deal. Now you're a private lender, so I'm not going to pay you back till the end. I get the property rented, then I refinance. It's worth 200 grand.

Starting point is 00:23:25 The bank says, we'll give you a loan for 80% of that. They give me a loan for 160 grand. I write that check to you. You made 10 grand on your money from me in four months. Great deal for you. Incredible deal for you. Incredible deal for me. I now own something worth 200 grand, 40 grand equity.

Starting point is 00:23:39 That's just going to grow. None of my own money. At scale, that's amazing. Even one's pretty cool. However, not everybody has Justin to give them that $150,000. Every single person listening to this has a hard money lender. Granted, you'll need a little bit of credit and maybe some W-2 income, but you need to qualify.

Starting point is 00:23:56 But there's a hard money lender that will lend you money. They will not just give it to you. They're going to want potentially 10% down. You're going to have to pay them monthly. So what I was saying was use that nest egg, that $10 whatever, 20, 30 grand, whatever you have nest egg, use that to make the hard money lender a whole with the doubt payment and the monthly payments. Because when you do that refinance, assuming you're reading your numbers correctly, you'll be able to get all your money back and then you could just continue to do it. And I've done that with single families. I've done

Starting point is 00:24:20 that with apartment complexes. I've done that with self-storage facilities. I'm doing that with a boutique hotel in Branson, Missouri. So you can do it with anything. You just have to buy an asset at a discount that's going to cashflow. And you can use none of your money over and over and over. Let's talk about how you're finding deals. I'm bringing in north of a hundred sellers a day into my business every single day. And I'm spending less than a dollar for each one of those sellers because I have an online presence that brings them in at a very low cost. Now, Google, I'd say the cheapest you're probably going to find is $200, $250 per one of those leads. I'm paying less than a dollar. How are you finding these sellers to do the volume that

Starting point is 00:25:00 you are doing in your business? You're going to give me that lead source, but no, we have a little bit of a, we have a, we have a similar, you know, somewhat similar model. So we have six full-time buyers. Their job is to go buy houses. All they do. We provide them with leads. Um, usually about, we usually give them like five to 10 leads a month, a week. I mean, so they can have time to run them down, but then their job and they are only employed while they are bringing their own leads. So we're going to buy, we bought 312 houses last year. 185 of them were from $0 in marketing spend. They were networking with wholesalers. They were networking with real estate agents, elder law attorneys. They were networking with insurance agents. Should we buy houses from a

Starting point is 00:25:43 bowling alley owner? A few a year. He rewrites, Ben buys houses above his bowling lanes and he's in drinking leads with the people and he has a big sphere of influence and shit happens to the people in his sphere and he calls us. So you just got to get around people with big spheres of influence and there's unlimited ways to do that. So a big push for us is finding these connector leads is what we call them. So connector buys and then we pay for the marketing buys.

Starting point is 00:26:04 But the fact that we have so many connector buys, yeah, it's their time and energy a little bit, but we have a great brand that brings in some as well. The combination of the two keeps our cost per buy down significantly compared to just buying all marketing leads. Because that's probably, in our market, you're just doing that, that's probably a four to five grand per buy proposition if that's your only lead source.

Starting point is 00:26:25 Yep. And then when you say employees, for those that are interested in building and scaling a business, which I would encourage most to be patient with that, right? I call it aggressive patience. You can get there, you can build what Sam has, you can build what I have, but be patient because bigger doesn't always mean better. But when you say employ, are you giving them a monthly stipend of sorts, right? Are you fronting their commission? How are you finding or how are you keeping those six people, even though they're going out and self-finding you those opportunities? Bigger isn't always better. Is that what you tell your wife, Justin? Okay.

Starting point is 00:27:00 I've sold that to her for the last four years, Sam. This is eight inches right here. That's what I say. Um, but that's so a couple of different things. So, um, we, we've kind of mucked with that a little bit. They used to be 10 99s now they're W2 employees. So, um, we offer, so for somebody's first six months with us, cause it's going to take them a while to build their pipeline.

Starting point is 00:27:20 Um, then we, we give them a salary. So we just give them five grand a month for the first six months. And then if they buy houses, it's almost like they get it no matter what, but they can make five grand and anything beyond that, they actually pocket. So it's kind of like a draw a little bit, but they don't always have to pay it back if they don't make the money. So we do that to help get their pipeline built up because it takes time, but we're spending 50 grand, I think I should know that. We're spending 50 grand a month in marketing. So we're, we're feeding them pretty high quality leads. They're bringing in their own leads after six months, they should have somewhat of their own pipeline

Starting point is 00:27:52 built as far as connectors. They should be pretty good at buying these marketing houses. And then at that point they can, you know, go off on their own and spread the wings and, and be a hundred percent commission at that point. So it's, it's kind of like a hybrid model, but it seems to work pretty well. But we have 401k matches up to 4%. We do health insurance, all the stuff to make it a desirable company to work for and desirable culture. We have people knocking down the door to work for us when we do have openings. Hell yeah, dude. Well, that's phenomenal. Again, here's what I'll tell you guys. This guy is the real deal. Make sure you're following him. Look up Sam Prim. He has incredible stuff. Dude, I appreciate it. I know you're busy. I know you're hustling from one meeting to another meeting. So I appreciate you giving to the science flipping community. Any last words from my guy? but I like to do this every once in a while is those that avoid failure literally are avoiding success. Like stop being scared to fail. You are not going to succeed unless you fail. I promise

Starting point is 00:28:51 if you haven't failed yet, that's why you're not successful. So stop being scared of failure, embrace failure. The only time failure is actually failure is if you make that same mistake again. So fail and then step somewhere else and then step somewhere else and then fail again, then step somewhere else. So just continue to push through and don't invite failure. But I would say encourage it.

Starting point is 00:29:14 It's fine. No big deal. Just get over trying to avoid failure. And if you can do that and you can embrace failure and you can learn from it, you will like literally be on hyperdrive. It'll be like one of those things

Starting point is 00:29:24 at the airport where you're walking on the thing and it's pushing you at the same time and you're flying by everybody else. Those are the, that's in my mind. People that fail on those things, people that don't fail are dragging with their kids sitting on the freaking, you know, roller thing and they're taking a break and they're overweight, drinking their thirst Starbucks. Get on the thing that pushes you forward. And that is failure. Amen, bro. Amen, I love that. All right, y'all, get out there, take massive action, fail fast, fail forward, let's go.

Starting point is 00:29:50 I appreciate you, dude. Talk soon. Peace out.

The Science of Flipping - Real Estate Strategies, Adaptability, and the Path to Financial Freedom | Sam Primm

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