Your Transformation Station - 118. Thriving Amidst Real Estate Challenges and the Digital Brand Revolution

Episode Date: December 20, 2023

Are you ready to push past mediocrity and achieve something truly remarkable? Let's tackle that together on today's podcast, where I, Greg Favazza, along with Michael Del Prete, take you through the trenches of building a brand that endures beyond the flicker of a passing glance. EPISODE LINKS: Michael Del Prete: https://azreia.org/show/ Amanda Barlow James: a realtor in mid-Missouri, is referenced in this episode https://www.jaderealtymo.com/about/profile/2392746/ Best Communication Skills Podcast of 2024: https://podcasts.feedspot.com/communication_skills_podcasts/ OUTLINE: The episode's timestamps are shown here. You should be able to jump to that time by clicking the timestamp on certain podcast players. (00:00) - Building Brands and Investing Realistically (07:50) - Rental Properties and Brand Building Strategies (18:35) - Consistency in Real Estate Investing (24:26) - Buying, iBuyers, and Building to Rent (33:29) - Mobile Home Investments and LLC Protection (47:54) - LLCs, Investor Scams, and Research PODCAST INFO: Podcast website: ⁠⁠⁠https://www.ytsthepodcast.com⁠⁠⁠ Apple Podcasts: ⁠⁠⁠https://www.ytsthepodcast.com/apple⁠⁠⁠ Spotify: ⁠⁠⁠https://www.ytsthepodcast.com/spotify⁠⁠⁠ RSS: ⁠⁠⁠https://www.ytsthepodcast.com/rss⁠⁠⁠ YouTube: ⁠⁠⁠https://www.ytsthepodcast.com/youtube⁠⁠⁠ SUPPORT & CONNECT: - Facebook: ⁠⁠⁠https://www.ytsthepodcast.com/facebook⁠⁠⁠ - Instagram: ⁠⁠⁠https://www.ytsthepodcast.com/instagram⁠⁠⁠ - TikTok: ⁠⁠⁠https://www.ytsthepodcast.com/tiktok⁠⁠⁠ - Twitter: ⁠⁠⁠https://www.ytsthepodcast.com/x⁠⁠⁠ - Pinterest: ⁠⁠⁠https://www.ytsthepodcast.com/pinterest⁠⁠⁠ - Linkedin: ⁠⁠⁠https://www.ytsthepodcast.com/linkedin⁠⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

See, like, are you a good kind of investor or not? So you pass. Excellent. Thank you. Yeah. Yeah. So for, like, building our brand in today's society, I feel like we live in a three-second society. I mean, that's according with Facebook, in order to get a view on the video that you post, they have to at least linger for three seconds.

So for people building their brands, organizations, entrepreneurs, not just investors. what's the biggest takeaway that they can use to grow their brand in today's society? You're listening to a podcast that encourages you to embrace your vulnerabilities and authentic self. This is your transformation station, and this is your host, Greg Favaza. Michael Del Pruitt, Pret. Del Preet. Del Preet. Interesting.

I like it. I like your background, too. Awesome, man. Yeah, definitely. How long you've been doing this podcast life? Podcast life. We have some, here at the organization,

we have something called the Azria show, and we are about 125 episodes in. But that's like my main podcast, and I just do other random things on the side, but that would be the main gig. Nice. Me, for your transformation station, I'm at episode 117, making this one, 118. Awesome.

Yeah. Yes. Yeah. And I love it. Been doing it for three, four years now, off and on. And I'm trying to finally get committed into it now that I got my bachelor's degree, trying to figure out how I want to take life to the next level and just be a diehard fan, you know? Oh, 180.

episodes is pretty committed. Yes, exactly. Like, I'm not going back. I'm just going to keep moving forward. Yeah, man. That's cool. Like, I always read, like, a stat I always hear. I'm not legit it is, but the average podcaster quits by 50, under 50 episodes.

That's pretty cool. It's pretty cool. Yeah. Yeah. I came across something similar with, uh, oh, Celsius. Hell yes. Usually I have one. I don't like that flavor, though.

It's a nasty flavor. They got to be sparkling for me. Yeah, that's true. The satisfied the nicotine crave, you know, maybe. No, no nicotine over here. I'll hit a cigar every once in a while. Hell yeah. No, that's cool.

No, like, I guess they, around 13 to 11 to 13, then at that point, they fall off. I guess that was around COVID, so I don't know what's happening recently. It's a lot of work, man. Like, you know, if you have a VA or something, and obviously takes a lot of rush off, but podcast is a big project. I mean, even at me, like, we're at the same level of how many episodes. It's like every week at Friday at 8. It's like, where's that?

Like, as part of many stuff we could discuss, it's like, you're always waiting for that, like, when's that big viewership hitting? When's all those, you know, we just got to day after days keep at it, man, and it'll pop one day. No, that's interesting. I just knocked you away for some reason. I want you to come back to me. I would really like to just go into understanding.

Yeah, because you focus on essentially brand awareness as you're an investor, right? You still do that? Yeah, I still invest to this day. Yeah, invest every day and as well as we're a new organization, yes. Okay, beautiful. Like, I would love to just look at understanding brand recognition and why it's crucial in today's marketplace and kind of playing devil's advocate and look at the factors of, investing isn't for everybody and i think people should know that like it sounds we make it sounds so

easy that you can just oh yeah just just rent out your house i mean just do br Airbnb or whatever you can do but i got sucked into a robert kiyosaki uh little seminar and i went with somebody and she got sucked in she was all in and i saw past it but it's like you know what fuck it if she's if she's gonna go all in I'm gonna be a supportive person and just go all in and be the best at it and

and uh I just want to lay out a foundation for our listeners that hey there's there's two sides let's look at both sides yeah by all means and I'm I'd be happy to talk about that it definitely needs to be because one of our missions here is you know for me I'm the average guy working 50 hours a week, never had any like college direction or any inspiration from family, right? It's like, and real estate changed my life, man, you know, and if I could pass

it on to someone else and they just bought one house in their light, one rental and it made your life a little better. I mean, I win there. I'll feel good. So let's talk about it. Yeah, beautiful. Well, like, what would you, what would you tell somebody like, there's a actually a lot more work than there is to being investor, right? Oh, I mean, you know, yeah, of course. Yeah, it's work. It's not what you see on Instagram, like, you know, Lamborghinis and watches. It's like it is, it's real. You could do it just like running any business and being successful at anything. But there's application after that learning process, right? And there's no safety net. There's bumps and bruises and there's learning and experience and it's a business. It's not just like, hey, I bought a

rental property. I'm a millionaire. You know, it's far from that. Yeah, like, because I had to look at the situation. All right, I had this knowledge of, from the Robert Kiyosaki to build credit and build it fast and just assessing my credit report, just to remove any remarks on there that are out of date, just bringing it to the attention of the three bureaus. And essentially, that was bringing up my credit score and to be able to utilize my military benefits to get a place. And long term, that was my, my end goal was to use my VA and to, you have to live in there for one year.

Then you can lease it out. And I couldn't even make it a full year because of personal situations that affected and painted the whole home. So it's just like you got to go. It can't be here. But for that situation for people, it's just there's a lot of aspects to it. You actually have to hire professionals.

You have to be able to trust these people to manage the place. And then they have to follow this certain belief system that you have. Like for me, if I was going to lease out my place, I would want other veterans because they, I hold like, like a certain standard to myself and to my property. And that's kind of how I expect other veterans to act.

So what would you tell people that? Well, you know, when it comes to rental properties, like you have, yeah, you have your rules along with the house, right? And either you're the manager or you have a property manager. So you can't, I don't know what state or city you're in or whatever it may be. but like there's also fair housing laws right but like someone has there's rules you have a contract in place hey no pets right you know abide by the laws of the city and stuff like that so they have to abide by that right it's in the contract so if they break that they have to move out um so and there's also you get to you get to choose who lives in your your property so you have the tenant screening process does it always

work out perfect no right do people slip through the cracks yeah of course but there's always processes in place to warn them or find them or remove them. So I don't know if that hits your, are we on? Yeah. Yeah. Dude, we're just recording, man. Yeah. That's the best way. I always say the best interviews are before the interview. Yeah, it is. Because you don't know what the fuck's going on. It's just kind of happening. Yeah, let's talk, man. Break it down. So, okay, let's go back to that question. I was thrown off. Sure. Yeah. Yeah, you're good. No, you're good. So, like, I understand, like, there, I feel like the system is in, is in play for the tenant, which should be that way. Because we want to protect everybody from scams, frauds, and get stuck in a situation where you feel like you're now facing coercion by the landlord.

It's like, why am I doing this shit? But, yeah, yeah, break it down for us. No, man, there shouldn't be any issues. There's bad landlords and there's bad. tenants. It goes both ways, right? But that's why there's the agreement in place, the contract, right? You live in here, you live your life, you pay your rent, take care of your family, respect the house in short, right? Yeah. Same thing as a landlord, right? Something breaks, something needs work. I'll fix it. Like, I'm proud of that as a landlord. I want to provide safe, clean, affordable housing. Are there landlords probably out there that might

push things off and neglect things and ignore calls. Maybe, but right, but there's processes for tenants. There's landlord tenant laws. There's places you can call in your town to report that landlord if your house is not safe. Right? So there's both sides of this. Yeah, that's true. And then as far as the landlord goes, you can enforce a lease to own kind of option.

I feel like that would kind of leverage the individual to take pride in the home as the possibility of getting the home long term. But, I mean, today, nobody really wants to own a home. So at that point, you get a free deposit and they move on after three years. That's not the goal, right? You're thinking right, right? That is a strategy, lease option, lease with the option to buy. So someone that will take more pride in the house, they will want to invest into it because it ultimately will be theirs. That is the goal, of course.

But I don't look at it like, hey, I get a deposit, right? Like, yes, I do hear that in the community. Like, people might say things like that, oh, those do it again. Yeah, for us, it's not a lot of work for us. They move out. You're going to spend that money fixing the place up anyways. That's what the deposits for. is to kind of, if that does happen, you clean the place up, fix the holes in wall,

fix the AC, whatever it is, you're back to zero again and then you go find someone again. No, if I put someone in a lease option, it's to sell the house. It's to provide housing for the community. Yes, I will make money on the deal, right? You know what I'm saying? So it's like, but yeah, never to like say, hey, I got a free deposit. I mean, that's not even. Okay.

I want to see like what your personality was if you were. for that or against us. So that was like a little test there. See, like, are you a good kind of investor or not? So you passed. Excellent. Thank you. Yeah.

Yeah. So for like building our brand in today's society, I feel like we live in a three second society. I mean, that's according to Facebook in order to get a view on the video that you post, they have to at least linger for three seconds. So for people building their brands. organizations, entrepreneurs, not just investors, what's the biggest takeaway that they can use to grow their brand in today's society? Well, welcome to the club. I'm still trying to figure it out. So it's an ongoing thing.

If I could say anything, it's consistency. You know, it's being yourself and doing it every single day, not comparing yourself to the next person. Or, you know, I, I like, understand you got to test and tweak things to get better and, you know, try things that see what works and what doesn't. I'm not going to go outside the boundaries of like who I am, what I stand for, right? So I fight that every day, man. I look at some my Instagram things. It's like 400 views.

It doesn't even go over 200. I'm like, what's going on here? Like, I could easily get a picture of an ass and say, get rich tomorrow, get your attention, and then say, hey, come join my organization. I just don't roll. I don't know. I can't do that. Maybe that's what we need.

Like, that's what, I mean, I'm trying to look at it as far as the type people that were appealing to. I'm looking at the majority of the population who wants to buy a home, millennials. I mean, how would we get their attention? I mean, maybe a big ass. And then, but then it could, but it's not really an ass. It's like your fist, but it may. makes you makes them think and then right in the middle you got your little logo yeah my my fist up

whatever by house or a bunch of you i don't know so but like you know so here's the thing the people that do a pay attention that and go viral on that stuff yeah there's it catches everyone's attention however is that the demographic or person you want going into your business is that your true customer i know it's a lot of people that just like when we put like a funny you know meme style short or whatever. We get tons of follows, tons of attention, but then they're gone. They're not the type of person that's

going to come into your business if we're talking about branding and actually go to the education, network with the community, participate and take action on what they're learning. It's most likely that person that's trying to get rich quick. So that really doesn't fit our model. Well, whereas you mentioned you went to a

seminar that fits that model. You know what I mean? So they just want them to come in, you swipe the card the back, raise your credit on your credit card and buy the program. And if you do, it's going to work. The information is real. Like, I don't doubt the information, but is that person at the mindset in their lives or they're ready to be that, become the person they need to be to be that millionaire. You know what I'm saying? So, whereas us, it's more of a, it's real estate investing is a long-term game. You're planting seeds and you're watering it and you're getting

son every day. That's real estate. When you say like the person's not ready, like are we looking at do they have the social support or the resources? Everybody's different. So here's a story. I had a gentleman. I'm big on, you know, affirmations, visioning, thinking, your goals, like just thinking

through the future and having a clear, clear picture. And there's a gentleman that came in. He wanted to pick my brain kind of thing, right? So all right, cool. This is when I used to do it all the time and talk to anybody. And so he's like, we're talking about, you know, who we are, whatever. He's like, we talk to starts with my vision boards for some reason. I was like, I got one.

And I was like, I told them about how I made it and all that stuff. I was like, where do you have your vision board? Because mine was like right on side of my desk in my office, right? And he's like, oh, I got mine right here. And he pulled out his wallet, opened his wallet, took out a piece of paper, unfold, unfold, unfold, unfold, unfold, unfold, the paper's getting bigger, bigger,

unfold, bigger, bigger. I'm like, oh, you got it in your wallet like that all folded up and he's like, yeah, yeah. My wife doesn't believe

in this woo-woo stuff and she gets embarrassed when I bring it up around friends or family. I was like, oh. And I was like, well, this isn't going to work. Like, if you don't have

support from your friends and family or, especially your spouse, let's just keep it there. It's not going to work and he's never seen him again. You know, not so he maybe he's doing it for all I know, but like, uh, you know, but that's the idea. So when you go to support, yeah, you need to be around the right people.

So I love friends and family and I'm not saying stop hanging out with them or not love them, but you need to get around people that are who you want to be because they're going to drive you and show you give share resources, build you up, pull you up. Mm-hmm. As you were saying, what was the folded piece of paper? What did that end? It was his vision board. So what did it look like?

Was it like, I can just imagine like maybe one thing. Like it just says my wife. Like he's a giant piece of paper and it's unfold. Yeah, dude. This was like seven years ago, man. I don't remember the exact drawing. But like, you know what I'm saying? It was just his notes, his vision, his goals, like whatever he, you know, that's what

it was. So he looks at it every day on his own. Hmm. Okay. Interesting. So now if we were to like segue away and just look at like social. media, it's a powerful tool for building relationships, expanding our networks. Yeah.

What are some, like, actionable advice that you could give to our audience that can, where they can use this tool to leverage their brand and get awareness out there? Sounds really boring. Please. Consistency, right? So, doing it, right? I wouldn't I as I do this more right I'm sorry I could I certainly make more money or whatever I could be more strategic hire more people to help me would do more things so it just depends where they're at right however it all started with just picking up the phone and hitting record or take a picture or write something in text every single day like even though I get low views I don't feel like I wish I was had more type of stuff. when you're in a daily life, I go to networking meetings or going around town, people like,

yo, I see you every day. I see you every day. I'm like, I don't see how, but they're saying it. So it must work, right? So I think it's, depending on the person we're talking to, it's really just doing it every day. And I think you just, just like anything else, as you do something more, you get better at it. The more you fail, the more you fall down. You're like, I'm not going to do that again.

Or I'm going to try it this way now. And you start doing that with pictures. videos, questions, your questions get better. You start becoming more confident, right? And you start doing it more. It's just a snowball. Mm-hmm. So, yeah, like with the leveraging this consistency, I mean, if you were to teach someone

your method, how would you convince them to follow consistency? Like, there's more to it than just consistency. How would I convince them to become consistent? How would I show them to be, why it's worth being consistent? I mean, however you want to look at it, how would you convince them to be consistent in the first place? Well, first, I would try to ask them if they had anything that they've ever succeeded at and how they did it. So that might be like, well, there's proof, right? But all I could just say is what goes on in my life, man.

Like, I've been investing for 12 years, right? It went from, like I said, man, at 1 o'clock in the morning, putting little signs in the street by myself, handwriting signs to get people to call me, not knowing how to marketing, market or nothing, to owning the largest real estate investing association in the country. So I think that has something to say, because I never gave up, man. I failed. I got beat up. I got sued. You name it, man. I just kept going. So I just myself as an example. I don't know how what else. No, this is great. Yeah. I don't know, man. So I don't have like a magic pill to say, hey, this is what you do. But I just lead through example, man, so I can really say.

So, like, with your time doing that, like, what was something that you, you've taken away out of those years being an investor? In what capacity? So what have I taken away just being an investor over the years? What have I taken away? Beautiful. So what I'm looking at, it's a universal kind of, like, application to, like, as far as brand awareness, we all have. have the same thing. We all want to build a brand, whether we're a podcaster, investor, or an entity for your corporation, their own awareness. So what's, like, of all these years,

what's some advice that you could give to people that are tuning in that, like, oh, we like his house, it says we, we love houses, but what can you teach us? Yeah. Be shameless. I'll promote myself, talk about what I'm doing. It's a shameless promotion, like, not being afraid because one thing we're new people come to wanting getting into investing. They don't want to tell their friends and family, they feel like they're boasting or they're bragging if they're like, hey, I'm buying houses or I'm trying to flip houses or sometimes people have that limiting belief that your friends are going to think

you're better than them or whatever. So I'm shameless. I'll tell you everything I'm doing. I'll respect the conversation. I know I'd have a conversation, but like, I'll tell everyone everything that I'm doing. So like I said, the hat, I like to do whatever I can to spark conversations. So that is something that I've learned. I do it from a place of I know it's not going to happen fast.

And I know it's going to take a while for fruit to bear. And then I also do it because I truly care about the people I'm helping. So in the organization, like I said, I started off with nothing. and I built this to be in this position because I've always tried to help the other person that I'm in business with, right? Whether it's educating people to become real estate investors or veteran investor to become better, whatever it may be, or when I'm buying houses from people that need to sell quickly, they're usually in a tough situation. Yes, you want to make a profit. Yes, you got to do your business. but at the same time, I won't put them in a worse spot.

You know what I'm saying? It has to get them out of that situation to work out, or I just won't do the deal. So I think that also, it's kind of like karma, reap what you sew, all that stuff. It doesn't come back right away all the time, but I've noticed over time you get that phone call that's like, hey, Mike, I got this deal. You want to be a part of it or whatever it may be.

and that's the payday, you know, it's a year down the road, five years down the road. So that type of stuff, the relationships I've built from doing the right business that just come back around, you know, that's what I would share, man. Okay. So, like, what do you, like, focus in real estate investing? I know there's, I mean, you can look at billboards. You can look at mobile home parks. Like, where do you focus at? me I focus on mainly in a single family homes.

It depends what strategy I'm doing. So a wholesaling real estate, when you're just buying, you're getting a property under contract and you're signing your interest in that piece of paper. You never actually buy the house. Use your credit or your money. It's like a deed, right? You get them to sign this piece of paper and essentially you own, you have rights, legal rights to it. No deed.

No transfers of anything like that. It's a contract. It's basically a piece of paper says, Mike would like to buy your house at X price, and seller would like to accept that at X price, and we'll go to a title company and handle the transaction. So that's what it is. And I just basically say,

I have the right to sell my interest in that contract to another person. So that's all I do. So that I can do. I could do that with anything, a bicycle, a house. So, you know, I'll do condos, mobile homes, multi-family. So I could do that with any type of housing. So that's fine. When it comes to fixing and flipping, so, you know, finding an ugly house and making it pretty and selling it to an end user, HGTV kind of stuff, I'm mainly focused on single families.

Okay. Cool. So let's go further into that. Now, like, are you familiar with, I think it's called I buyers? It's, yeah, you tell us about that and is that affecting the brokers. Got it. So I buyers are more like tech companies, right? They have big money behind them, corporate money, hedge for money, whatever it is.

And they do, everything's pretty streamless through, you know, online offers and you're dealing, you know. So they're just big funds that can buy a lot of properties with a lot of. of money. So how does it hurt? Well, they have agents. They are probably licensed and they have agents working for them. It's just competition in some way. It's just another competitor doing business a little bit differently. Still same rules, still same game. They do buy a lot. They buy houses cash, so they bump into the investor world. And then they list their houses and they make it a little bit more convenient. They cut out the agent a little bit more. So not as, agents not as needed, but they still need to be licensed. So it's just another business model, you know, so I don't think it affects

too much. Yeah, I look at it as like it's Carvana for like compared to a regular traditional dealership. Yeah, I hear, yeah, I agree. So it's like, you know, the big parts about that, it's outside of that, like that, there's the I buyers and then there's like corporate hedge funds coming in. So they're buying houses like, um, like it's a, well, it's a business, but it's, They're taking away that emotional home. It's a business model, right? So they're coming in here. They're buying up the home.

The COVID boom, all that stuff. They were first time home buyers were out of the game, man. If you didn't have big cash, if you weren't like people would sell their homes from California, for Arizona at least. They'll come into Arizona because it's a lot cheaper and there's outbid in everybody. The hedge funds are paying 100% of value for the house. there's like it's it it took a lot of opportunity away from the average person in the community and needs a house for their family so their kids can go to school you know so yeah it affects in that way as well and now they're doing build to rent they're they're out here building communities just to rent them out which is good because we have a lack of housing so maybe gives people an option to maybe get out of an apartment and move into a house right for their family we still don't own but 80% of the the the permits to build new homes were for build to rent corporations. They weren't for me and you to go build a house for our family or, you know, a small builder to build a house for, you know, to sell, you know.

So there's ways to look at it like that. Built to rent. Now, I want to address that, but before I know when I purchased a house, like I was going at it for six months straight to the point where I'll go see the house. So I'm like, okay, great, I like it. Then I try to put a bid down and it's too late. It got to the point where I saw a house online. All right, 110, send it. Like, I couldn't even go there to look at it because it was happening so quick.

It's unfortunate, man. Yeah, that it was crazy, man. It's like, even on the, here, I'll even twist it, like on the real estate agent side, right? They have a fiduciary responsibility to protect their client. I'm like looking at it like. you know, sometimes like you were trying to, you tested me on a question, right? So people have this stigma against real estate investors. But then when an agent goes out there and they're creating a bidding war and they're having

a first time home buyer waive their appraisal, waive their inspection or whatever, doing a short inspection, wave the appraisal, buy the house as is. And they're just a family trying to buy a house and they're getting them to pay 50 grand over. And they go and get an award at the office. Yeah. Like what's the difference? like, you know, I don't know, man. So so many ways to look at this.

I mean, you got to have a developed rapport. Luckily, the individual, God, I really wish, because I would love to yell her name out right now. She did a fantastic job. She dealt with me with the very bare minimum that was in the housing market of putting out for a four-bedroom house. Like, it was amazing. We got it for the price.

And she was just grinding for six months. We finally got something. So once I figure her, name out again. I feel bad for even saying that. I just want to holler and give her a little shout out. But for build to build to rent, now are you referring to as modular homes? No, no, single family. Well, and remember, a lot of my discussions and come from Arizona. Okay. Because that's where I'm at. So, no, they're coming in building communities. I'm talking 50, 100, 200 houses and developing them and then renting them out. Interesting. Now,

I like to try to put multiple viewpoints for our listeners who are current buyers, who have already had a home and wants to get rid of it, and also possible investors. Now, like, have you ever heard of this, I guess this approach or model is you go out by a piece of land, hopefully filled with acres of trees,

then go cut those fucking trees down, sell them to the lumber fucking yards. And then that's going to get you money. You put a fucking modular home down. and all you got to do is the electric in the sub pump, and bam, like you're set with like a 15-year warranty. Well, the first part about the trees I don't, I'm not familiar with when I'm in Arizona,

so it's maybe cactuses, I don't know, but, but yeah, no, but the other part of it, though, is, yeah, I can see it, right? People are, it's possible, yeah, people are out coming out here. Okay, so when everyone's coming to Phoenix, we're in the fastest growing city, So what does that do? Inflation's already a thing around the country.

Cost of living goes up. So you got $1,500 for one bedroom, right? In the middle of the town, right? If you're working at the hotel, like, that just doesn't work. So you've got to go 20, 30, 40 minutes out. And it's hard to come back. So people are moving the north, the people that have always been here. Now they start going to the outskirts.

So what people are doing is buying land on the outskirts, say a five-acre parcel. Yeah, you could buy a five-acre parcel. parcel from someone that doesn't want it anymore, very cheap. Let's just whatever that can be. Every city's different. And then you could split them. And then you could take that five acre parcel and break it into five one acre parcels. Interesting.

Buy a brand new modular home for 80 grand. Drop it on, you know, buy a one. You get a well and sewer, whatever depends on the area. So land, split it. Get the well, get the water, get the sewer. Obviously, you got to work with the city, permit zoning. And then buy a module or a brand new mobile home, so to speak, manufactured home, drop it on there, fix it to the ground. And now it's a house.

And then you can sell those things for 200,000, 180, whatever the situation. So there is a play there. That is, I do am familiar with that and is happening here and here. Yeah. You said mobile. What's the difference for our listeners for modular versus mobile homes? You know, don't quote me on that, man. I think mobile homes, because originally started like 50s, 60, 70s.

They're actually cars, right? They're considered cars and they had like the wheels on them and the hook in the front. But I think as the, you know, time progressed, they started just making them into, went from transistors from mobile to manufactured. Maybe there's a date thing involved. I don't know the exact definition. I know mobile, they don't retain the resale value. I mean, like, yeah, I came across some really nice ones.

that has everything from a jacuzzi to a shower and a tub and a jacuzzi in the master bath. Like, wow. But it's mobile home is like, I don't want that. Yeah. Like it's, you know, it's funny, right? It's like some people, that's all they want. Maybe that's all they knew, no, right? So it's like the mobile home never was popular until, well, no, I can't, no, don't.

It's never been like an desirable investment. Let's say that. Yes. But now that there's a low shortage of housing, I mean, all the years in the business, man, never dealt with a mobile home under over 100 grand. Now that they're all over 100 grand. It's crazy. Yeah. Yeah.

Like I lived out in one in Colorado and loved it. It was out in Bayfield. And I was on 27-a-half acres. It was beautiful. I had my barn. And I wasn't a fan of mobile homes. But that one had three, three bass, three beds. And the master had a jacuzzi and a shower and a tub.

I'm like, oh, my God. This is so cool. Yeah, man. Yeah, that's cool. 27 acres. Yeah. It's amazing, man. Yeah.

But it's just like you try to find that out near a city or any place that's heavily populated. They ain't going to happen unless you got a million. Yeah, man. You know, people, there's in Phoenix, there's subdivisions that are just, you own the land. It's not a park. You own the land and there's mobile homes on it. It's just you could bring one on or you could buy one that's already there. Oh, I've heard of that.

So then with that, you have to, you have to, you essentially, you would rent the place, the spot, like where your, where your mobile home sitting on. That's a park. Yeah. So there's either. You have someone that owns X amount of acres and then it's kind of like parking spaces in a way. It's called lot rent. And then you could drag your mobile home on there or sometimes they're already there and then you pay a lot rent. But you own the mobile home, but you lease the land.

Interesting. That's one way. Those are usually cheaper. So you can get those mobile homes. Those are even above 100 here in Phoenix. But you can get those a lot cheaper, five, 10, 15 grand. You might be worth 30, 40, you know. But then you have separate, then you could either get mobile homes that own their own parcel of land, just like a neighborhood.

They're subdivisions. Wow. Okay. So there's just so much real estate. Like you said, there's so many ways to do this business. There's no right or wrong way. No, and that's the beauty. Like what you said with like the mobile home, like parks.

Now for people that are wanting to be prospective investors, like I know there's parks where there's. probably maybe abandoned mobile homes or just whatever the case may be. And I feel like you could almost persuade the park owner to sell it to you cheap. Or I would say looking at it's a burden that that home that this potential home that's sitting there is taking up space. It's not collecting any money. I'm looking at it if you give it to me for free, I fix it up or I remove it. Then I could sell it or just fix and flip kind of thing. yes and no so now and i would say something like that would probably happen and um where the demand

isn't as strong okay right so here in phoenix the parks are like a hustle man so it's like they they i think even in their contracts their management contracts or for the leasing they have like first right or refusal so like sometimes you can't even sell it to someone you got to call the park and be like can i sell this to someone else or are you guys going to to buy it. And then if you do sell it to someone else, they want to approve that person to even be in the park. So it's really, they make it really hard to kind of get creative and do us. Because they ultimately, they probably want that. Especially if there's demand, they want that. If someone passes away, they get that thing, penny is on the dollar from the family. And then

they rent it out or they sell it. So that's what we're starting to see more common now here in heart in Phoenix. Interesting. So when somebody passes away, it goes to probate unless it's in trust. Well, now if we're talking in a park, it were pretty much a mobile home is considered a car. So this is DMV type stuff. You're right. That is true. That is true. So it goes to the estate. I'm not an estate attorney or anything like that, but like, you know what I mean? So somehow, if it's not abandoned, obviously the family member comes in, the car is a part of the will or the estate, the trust,

whatever they have. But someone's going to come in there. Someone has to come in and get that registration into their name and deal with the park. I'm sure there's like an abandoned clause, right? Like if I'm sure the park has something, hey, this has been sitting here for six. I'm sure they have some type of rules or laws that allow them to,

what's it called, um, quiet title, right? There's strategies. to get abandoned cars into your name and stuff like that. So I'm sure they have their process laid down. Yeah.

Like there could be lanes on, like, would they have a lane on a like a DMV, like title versus like a home? Like, because I know if you, if you hire contractors and you don't pay them off, then they can put a lien on it. So we try to sell the house. You will have to pay that first before the house can be, well, the title can be transferred over. Now I'm thinking would it be like a salvage title?

Like you can't have it be able to sell it until you deal with the park issue or might just spitballing some crazy shit. Yeah, you're out of my league right now. Yeah, I don't know how Carlene's work or transferring titles for, you know, I personally, I would say I don't have much experience in the mobile home park world. You know, so I have some experience and good friends here at Azria that we always chat about. but I'll, you know, I could deal with mobile homes that own their own land that are treated like houses. So that's a different story, right? So if you have, you own the land, the parcel, the lot, and you have to do what's called getting it permanently affixed. So it's an affixedure process.

So for like a thousand, two thousand bucks, whatever it is, you could have a professional going. They literally like strap the mobile home down to the ground, like an engineer wise, right? So it's safe and doesn't blow away. and then they consider it real property. Now it's treated like a home. And then you go through the title process, the title company, get a deed and everything on the house.

That's weird. So it's almost like having a child. You get the social security card. So it's like you're getting it. Now it's a real house. You got to make you. Yeah. Yeah, man.

For real. Yeah. That's funny. Just like your kid, you don't even own your kid. You don't even really own the house because you got property taxes. is okay no that that's interesting now let's look at um another aspect like for

i know there's with buying and and selling like is there like a model no no not before we go to that LLCs like are you familiar with how LLCs work from from an investor's like point view of protecting yourself. Like, I know there's certain ways to set up LLCs. Like, what's your view on it and how do you approach it for yourself? I look at it as protection. It's like a shell over your personal self. So if you have a rental property, you buy it in an LLC and you have it inside that LLC.

So if whatever happens, there's a lawsuit, they're not coming after your personal home, your personal bank account, your personal assets. they just deal with the LLC and everything the LLC owns. So the first and foremost thing is it's protection. Okay. Now, like, I want to go deeper than that because I know we can really, like, you can set up your LLCs to be, like, unique. Like, you can have one LLC and inside that one, there's four.

And with each one of the four, one can consist of your savings and checkings. The other one can consist of personal. property and then the other one can consist of whatever and then it's surrounded by a trust yeah there there's plenty of strategies like that um that's something you do with your estate planner or your wealth strategist or your attorney or your accountant right so there's one thing i always say it's it just depends on you the investor in what you're trying to do so um do i actually i I'm in the process of creating a trust. So yes,

so I'll have a trust, which will be owned by, well, own my LLCs, my rentals or whatever. So now if I pass away, no one comes in there and dictates, I don't have to go through probate or anything.

The court doesn't decide that my son can or cannot own anything or sell anything, right? So that's how I look at it is protecting your family and your wealth and all your hard work. So outside sources can't, penetrate that, right? But yeah, like there's, man, I don't dive that deep. Like, I don't, if you're talking about like the shell game and just protecting and being hidden. No one knows who you are and you know what I'm saying?

Like, that's real, man. Yes. I remember I was, you know, I network a lot, right? Someone called me, right? Hey, Mike, want to get a phone call? Cool. And he goes, hey, your house is right by my office. You're on blah, blah, blah.

out road and I'm like how'd you know that you what I'm saying like I didn't it's the first time I ever met the guy ever never even met I talked to him and he knew where my house was you know what I mean like that obviously it's probably not that hard these days to figure out where people live however you're like man that you feel wide open right so if someone wanted to sue you or they wanted to see like whatever just some just crooked people out there so that's how I look at how can we protect ourselves I wouldn't I don't do it in a way of like trying to, I don't know if that's where you're trying to go with it.

Yes. Some people just try to have some people try to, what do they do? They see in the movies like they, the cowboy movie I was watching, they have like leaves and branches on their feet so it covers their tracks. Yeah.

You get a man like, but yeah, looking at it from a like protection because I know with LLCs, you can have them linked to other states as far as I know, with Nevada, the Secretary of State's name only populates there. So when they were to look up your information or your LLC,

but in other states, no, I believe Florida, it's the same, but everywhere else, Arizona, I'm not sure. That happens in, I'm actually, no, it's funny you bring that up. It's Delaware, Wyoming, and Nevada is where they have like that, I don't know the legal terms, like where it's just you can't find the person. or they don't clearly say it publicly who the owner of that LLC. So yes, do people have LLC within their Wyoming LLC?

Yeah, all the time. Like I have had deals. I have partnerships where I buy houses with people. And when you buy houses at the end of the year, after all you're when to do your taxes, you get a K1, which explains how much each partner makes. And you take your K1,

you submit to your accountant, and you tell how much you made and loss. to the for the government. So, um, every time we tried to refy a house or do a deal with one of my partners, they had everything in a Wyoming LC and no one knew their address or phone number. They knew nothing about them and they would automatically assume like, where's this guy? We can't refi this house. We don't even know. They think he's shady or something. But no, he's just, just protecting his stuff, man. He's a great guy. You know, so it's like, yeah, man, there's a new, um, I'm looking it up right now since we're talking about. I got to.

Yeah. A guy, no attorney, he sent me an email about what you're talking about. Here we go. It's called, it's just passed privacy. Congress passed the Corporate Transparency Act Act. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government's efforts to make it harder for bad actors to hide or benefit. from their ill gotten gains through shell companies or other opaque ownership structures.

It's called the beneficial ownership information reporting system. So it just happened. So it's a long, long article here. I'm sure I don't really don't want me to read it verbatim. But I just actually sent it to my attorney and said, is this something we need to inform our members about and educate everyone with LLC? So, yeah, I guess they're maybe cracking that open at some. level, I think mainly for the Wyoming part of it.

Interesting. That's beautiful. I mean, what was the name of that article? So then our listeners can find that if they want to go into that little loophole. You know, this gentleman Lee Phillips, he's a, he's an attorney. He used to be like a politician. You know, he just sends me his articles every once in a while. Beautiful.

I don't know. I could forward it to you. And if you wanted to like upload it on this episode or something. Yeah, definitely. Yeah, definitely. I would love to share that with everybody. That's interesting. I understand with having this system of LLCs within one, if you do, if somehow you get sued or something where there's a lane or something that's pending against your LLC, I know

it's beneficial to have those LLCs inside. Say if you have a self-directed banking account where you pay yourself depending on, I think that's an S corp or C corp. And then you're able to still operate effectively, even though you have pending legal matters. Yeah, I don't have that answer to me. I'm sorry. Like, I don't really have too many or any legal pending matters.

So I just have my bank account. So one thing I do is I do have a rental property with its own LLC. It's usually like if the, whatever the address is, sometimes I'll make the address. That's the name of the LLC. You open up a bank account and I have one bank account with that one LLC. And you just run your business. So I'm sure there's an attorney on here that could say you're wide open or whatever.

But that's just how I do it. You know, one LLC, one property, one bank account. It can be a lot of paperwork for your bookkeeper or stuff for tax reasons. But that's all, you know, that's how I do it. Beautiful. No, I have all this information that it's kind of just useless. So I just want to just word vomiting it out whenever I see fit. All good, man. Hell yeah. No, so that's something to be considered about, but actually looking at it as far as protecting ourselves from scams, from investors. Like, is there like resources that people could look people up to say, oh, this guy has, he's been charged like numerous times with.

X, Y, and Z. Man, one, just do any type of research you can. Just straight internet, right? Start there, Yelp, Google Review, Better Business Bureau. Just start there. Is there a way to look up? I don't know exactly, man. I don't know where you would look.

Investor.gov. I just came across it. Yeah, so you just type the individual's name in there and then you can pretty much gives you a rundown of everything about the individual. I know I've got scammed. Really? Hell yeah, man. Like, I know this guy, he got me good, man.

Do tell. Do tell. Yes. Let's see if he's, I'm going to check right now, investor.gov. Yeah. I want to put his name in there. Let's see. So, you know, so one popular thing here is I did, oh, I do a lot of investor.

investing in Cleveland, Ohio. It's Midwest market, lower, we get a lot of listeners from Cleveland, Ohio on here. All right. Well, I got a lot of stories about that's all the more podcasts. But, you know, so what happens there? It's low. When you're in California, Arizona, Miami, New York, you're talking $5, $6, $7 million, you know, for a house. So when people are trying to cash flow, it's harder to cash flow because, you know, it's a lot more expensive to rent to purchase ratio doesn't allow for a good return on investment. So people move to like the Midwest, right? So you can get a, you can buy a house for less than 100 grand, put a tenant in there for a thousand bucks. You got 10% return, give or take, whatever it is. Good investment.

But what a lot of frauds do, they go, they live in California, they live in Florida. They're in this, they go in these nice areas, country clubs, whatever it is. And they're just well liked. And they say, hey, I'm an investing in sewing. so in the Midwest. I'm killing it. I'm crushing it. Whatever they have their, whatever they do to fool people.

And they just go buy properties. One thing, okay, we'll share with your listeners. If you ever lend anybody money, you must get first lien, you get first lien position on the property. Just like if you go borrow money from the bank,

a Bank of America, and they let you borrow money and you pay them a mortgage, no different. So if someone's, like, hey, let me borrow 100 grand. We're going to flip this house. We're going to rent this house. You got to get first lien position and record a mortgage note against that property

through a title company. You do not give them a check and over the at the kitchen table, whatever, and then say, hey, this is your house. One, two, three, Main Street. We're going to work on this. I'll let you know when I'm done. No. So it's so education.

It goes back to education and being around the right people and doing a little bit of research. That's one thing. You have to take some responsibility, right, of doing some research about what you're getting into, whether friend, family, whoever it is. With this guy, these people out here, this one specifically, they're going out saying, look at me, I'm crushing it, I'm doing this, I'm doing that, look at the pictures. I literally went on a bus tour and saw the house, saw the contractors, everything. And basically, they're just buying the house and keeping the money. Like you'll cut you'll cut the person 100 grand like this is your house over here. It'll be done in three months, six months.

And they just keep the money. Interesting. So like what's let's look at that. I was trying to rent a place out here in Missouri. And I came across this app where you, you just, you pay like $10. And then it gets you like 30 attempts where you can visit a home and it has a lock on there. and then when you scan your ID, you go to the house and you scan the code on the lock, it unlocks the house to give you the key and it gives you amount of time for you to look inside

to see if you want to rent it or not. And I believe the houses are winterized. So it's empty. It's all ready to go. And there's people that are pretending to be the owner of that set house, putting it on Facebook marketplace, saying if you, you can rent this place for this amount. All you got to do is just give me the money and you can take the key and just move in. Yeah.

No, that's big out here too. Or what they'll try to do is just hustle you for that. Hey, it's a $50 application fee. Just zell me. Right? And then people are just zelling 50 bucks, 50 bucks, 50 bucks. So yeah, that's a problem. Like, you know, be once again, if someone's renting a house, you can do, like we were talking about

searching public records, right? You can look up that house. You can see who owns it, right? You can see if there's a real estate agent involved. Get a real estate agent involved. Look up public records as an owner. And who are you talking to? When the person says, hey, I'm renting my house.

What's your name? Are you the owner? You have just a much right to ask them who they are and what they're doing, just like they're going to ask you. So, and just never give, if you don't see the house or you don't feel comfortable, don't give anyone an application fee. Don't pay for anything. See, I'm looking.

up right now and see if I got, is it Jonathan, Michael? Nope. No. Michael Delpre. Yeah. I'm not seeing it on that one. Guess for investors.gov. I don't, I don't see you.

Where are you? Are you hiding? I'm going to have to devote my time to looking you up. I'm always curious. Go for it. Yeah. I don't see you on here. Michael L3.

Yeah, no. You're not populating. Why are you not populating on investor.gov? Maybe my social media is not good enough. It's not public with you. Well, investors don't, we're not licensed. You don't go onto a public registry and input your information. No, for this one, for the U.S. Securities and Exchange Commission.

I guess it's firm or individual, but then, it's either name or CD or CRD number. But why would I be on there? I don't know. You, if you're an investor. Are you an investor? Ah, got it. Yeah.

That has, Securities Exchange Commission is if you want to be an accredited investor. Thank you. Yes. Okay. And you want to be considered an accredited investor so you can invest in certain projects. So this has nothing to do with finding, I don't think it has anything to finding whatever you're looking for, scams or whatever.

So it's, I think you might be a little off track. Yes. But no, this is good though. Like, what if I was trying to find information on trying to identify if this is a good person to invest with? My idea was, oh, investor.gov, like that makes sense. Yeah, no, no, I hear you. So is there, I'm not familiar of like a site.

There's like big communities like bigger pockets.com. I don't know if you ever heard of them. Yes. You could just maybe search their name. That's one thing. Okay, here's something you can do. Like we do, like go to Facebook groups. Yes.

And go and search their names and Facebook groups, man. And like, and if they're active in a community, like go to like whatever Missouri real estate investing, right? And then punch their name. And if they're active buying and selling and they're doing bad business, someone's going to be like, yo, don't work with so-and-so. So that,

you know, I wish I could share with you like, hey, don't, there's like a site for, don't work with people, you know what I mean? But I'm not specifically aware.

Yes. I know when, like your, your presence are like, like what you do into the world, the law of attraction does gravitate towards you. And, And what you can't get rid of is what's on the internet.

So that's arming people with the right information to protect themselves. Because we got to look at it. It's hard-earned money. And what they want in life, it might be something that is pictured as ideal, but they don't understand the amount of work, the effort you get to put into, but also the dangers that can happen in just a blank of an eye by trusting somebody. Yeah, man. So you have responsibility to educate yourself the best you can before you lend anybody money or even do any rent a house, buy a house.

Yeah, because there is some bad stuff out there, man. Beautiful. Now, let's transition into closing. Would you like to, you can have the floor, share what you would like to share and inform our listeners, whatever you like to inform them? Yeah, man. really like my main thing here is Arizona Real Estate Investors Association. So if you're looking to invest in Arizona or if you're in Arizona and you're looking for that proper information, the right people to work with vetted business associates that have been in the business

five to 20 years with a great track record. You're just looking for that the right way to do things or where your resource here in Arizona. So we go to asria.org. Check out our, we do about 15 events a month. You know, or we're dream events as well. So that's all I'm really here to do, man. Just get the right information to the right people. Hell yeah. Well, awesome. I do appreciate your time and join us today. Yeah, man. Thanks for having me. Really appreciate it. Excellent. That's it. Were you happy with that?

Yeah, man. No, it was definitely a different style. And I appreciate that, man, rather than the same old, uh, one, three, two. Yeah, no, because like, went right into it. Yeah, no, it's exactly what I like to do. I like to, I want it to be authentic and real. And it's like, I'm calling you out, like seeing if you're a fraud. Like, you didn't even know it. Yeah, I was like, what's going on? Like, no, I like that.

I like that, I mean, because you do, when you do, when like you know, 120 interviews and then you're part of 120 interviews, it's like, it's just that inspire. And it's always inspiration, motivation or like, you get to have my same answers down. and I'm just getting better at saying them. So I liked being off track and, you know, just being, you know, myself. Yeah. Like I wanted. It's like having a conversation like two friends and they're just sitting in the room, like a fly on the wall. Like, oh, they are saying all this cool shit that I wish I knew.

But they won't share with other people because it might be considered frowned upon. Yeah, like, that's exactly what I meant when I was like, the good conversations are the conversations before you hit record. like in that's cool that you were just doing it and we were just already having that conversation so yeah man I appreciate your style and I like it and yeah man thanks for having me exactly that's that's the way exactly that's the way with today's brand it's how much effort are you willing to go to get noticed and get in front of people well do you know what what I'm doing right now is I committed to 100 podcasts that's why I signed up for all these these podcast connection things

and I have my assistant like calling all this random podcast. I'm trying to hit 100 podcasts. And this was like number seven. So, fuck yeah. Oh, man. You know what? It's going to be downhill from you,

like from here because they're not going to have this excitement. Is this? Yeah. As you can tell, I'm very expressive. Yeah. And it's like, whoa.

Like usually you can like plant your feet to know what's happening. But I felt like you didn't know what was about to happen next. I didn't. You got me. Yes! Oh my God! No clue what was going on, man. I was like, let's just chat, man. Let's see where it goes.

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