0:05 Welcome to an amazing episode of Careful Boys. Today we have MEN WITH US. AND WE HAVE ALL THE BOYS, ANTHONY, JOE, BART, NICK, ME. Welcome to the show. Burrito. So I ended up working with men's firm to get my loan for the house that I'm looking for. Let's go. That's good timing, dude. Thanks, dude. Thanks for taking me out. Thanks for taking me out as a client. What's the discount code? Sorry. No, uh for the mortgage stuff, don't you For each state you have to be licensed, right? Okay, so you guys are nationwide or like We're in like 40 states, so I'm licensed in like 13 states and then I have guys who work for me that are licensed in other states. How come you didn't help me with mine? You weren't licensed in Nevada yet? I know, we just got licensed in Nevada still. Oh, cuz I remember I was like No, he was busy. He was busy.
0:55 houses and he kept telling me he's like talk to this guy and John and Albert and Ronnie and Roscoe. He just dropped all their names right now? Real names? I don't know. I just made I just made up names. Hey, so that means when I if I buy a house in Vegas again, you could just hook me up? Yeah. All right. I want like can I get 2002 rates? Man, you can pick a year? It's like would you like 7% or 2? It's up to you, really. You get to pick. I should say thank you as well. You helped me when I was looking for my house and you referred me to a John or Roscoe or Rusco or whatever. Rudolini? But then I yeah, Rudolini, that was it. Mr. Rudolini. But then I ended up going with the developer's lender in order to get like That's what we tell everybody. If you're
1:45 buying from the builder, always use the builder. They have the best rates. They technically so in your purchase price they've already padded in all the closing costs and all that. So if you don't use them, you're losing out, but you're already paying for it cuz you paid for it in the price. But then you'll save like 10 G's on all the closing costs. Yeah. So it's helpful. But that's only if you're buying from a builder. If you're buying from like regular person, then it's yeah. Then Mint the man. Mint's the man. Especially if you're illiterate about all that stuff like I am. I don't like agents. I think they're stupid as ████ But mortgage is different. Which one like book agents? No, real estate agents. Why do you feel You feel like they're they're shady? I like it. If you don't have a good agent, but right now with lawsuits and with laws changing, having a good agent does help because now people are selling older homes and they're not fixing it. There's all these
2:35 little issues there with this, little issues with that. If you don't have a good agent, you're going to buy a lemon or let's say you pass up on a good deal when it was something simple to get fixed. So unless you have a good agent, then yes. But if you don't have a good agent and it's just an Uber driver who's an agent, then yes, you're right. So why why is it that there's not that many good agents? Is it like a bad licensing thing? Like people People slip through cracks? Yeah. Like it's just easy to be one? There's difference between passing the test and actually having experience. So A huge red flag is if you have an agent and they do something else. Mhm. So the good agents are full-time. They're always full-time. If there's someone that's like, "Oh, I'm a real estate agent, I'm also a photographer." And a hibachi grill chef. Then you're like, "You are not going to be So you're bad at both." Yeah, you're not you're not a good A good agent only does uh real estate agent work. The question I ask is that if that agent actually has rental properties or they
3:26 flip properties, that's the agent I want. Oh. Hey, there's something something wrong there, something wrong here. Hey, this is the foundation You need a flipper agent. What if they have a Lambo? That's good. How did they get the Lambo? Stole it. Rented it. What if there's all these stickers with serial numbers on the Lambo? From their photography business. That's where they got it. Yeah, that's that's a that's a good one, too. Cuz like if you're a good agent, mo- more than likely you're more invested in the industry. So if you have a portfolio of rentals, you're like, "Okay, you're a good agent cuz you've moved yourself up." But, if you're an agent that also doesn't own a house and you do it part-time, you're like, "Wait, so how good are you at this industry if If they made basketball cards for ████ agents, all your numbers are literally the wackest numbers you've ever seen. Like, zero points per game." I'm like, "I don't know if you're a good agent, dude." Yeah, is that Is that a bad sign if the
4:16 agent doesn't has never owned a home for themselves? Uh they don't own a home, I think doesn't mean they're not good agents. They could still be good at negotiating. He's nice. He has an agent home. He has an agent home. He's with no homes. Are you prejudiced against that? No, I just prefer that they they they flip for sure. If they flip, then I know for sure they know, "Okay, this is wrong. That's wrong." you know, before you even buy it. So, so having an experienced agent that flips themselves is better than someone that just sells like residence for people to like primary residence to live in? Correct. I think if they do, a lot of agents do do regular residence as well and they flip. So, if they flip, I I they have to flip for me. Because now I know like when I would go to a property, home inspections pass pretty easy these days and other things pass pretty easy, but they'll hey, there's going to be an issue here. So, you want that agent to negotiate. Especially right now like certain areas, it's still a
5:06 seller's market. Certain areas are a buyer's market, but if there's room to negotiate, that agent's going to point out the things, "Hey, this needs to get fixed. I need a price reduction here. I need a price reduction there." We were at Altadena and we looked at one of the burnt down houses and then the agent was like, "This whole thing needs to be built." And I'm like, "I think so, too." While the smoke is coming out. Tell the seller like, "We got to fix this." Yeah, pay this guy up front, man. And I was like, "Damn, this guy knows his s███." And you need it He's already working for you. You need an agent that's niche the ████ out, too. So, when you go, "Oh, what kind of houses do you sell?" "All of them." You're like, "Okay, this guy sucks." But, if if they're like, "Oh, I specialize 500-700. I specialize in mansions." If they specialize, that means they're so deep into the weeds, they're really good at know how to look out for all those home inspection things. What do you consider yourself a specialist like a home with a balcony or something? Problem solving loans. Problem solving
5:56 Like I solve like I deal with like issues with loans. So like if you're not going to have a straight-up I have no money. Zero down loan. Like if I call it a a roofy deal. If it's not a I got I roofy deals or lay downs like any bank can do it. Like what's a lay down? Like if the loan's easy to get done. If it's like okay cool, this one has this issue. They're going to have these challenges. Okay, cool. Like let me let's let's work on it right now and then move on. So it's called a roofy deal? Yeah, if it's a lay down deal, everyone can do it. Cuz you got a roofy deal. I think he said Rufio deal. I was like Rufio deal. What is that? Way more dangerous. Yeah, how do I get in on those deals? Yeah, you ever Have you watched his videos? I'm just like what How much the paycheck's going to be? Oh yeah, yeah, yeah, his royalties and they're always like 10 cents, 5 cents. Yeah, Taco Bell's going to pay for Let Me Know. That's the life, man. Oh yeah, is this a good time to buy a freaking investment property?
6:46 The best time to buy investment property right now. Interesting. I think buying an investment right now would probably be would probably be better than buying a home unless you have a family, unless you're growing a family, unless you're like, hey, I need it in my mental checklist like I got to buy my house first. Why is that? Because rents are going up and more and more people on these lower end homes don't qualify. So you would think, okay, who has 200,000? Okay, most people who have 200,000 don't live in Philadelphia. But they go out and buy Philadelphia. They can go out and buy Missouri. They can go out and buy in Baltimore and it's going to cash flow because a person who can live in the house in those areas can't afford to buy in those areas. So the competition's not there, but they can afford the higher rent. So you're talking about like California people that want to invest, but that 200K in California won't get
7:36 them ████ So they go to other states where they can buy out a whole house and then rent it out and cash flow? Correct. If you live in a first world state, buy in a third world state. That's true. What are some good third world states? That's crazy cuz like Literally like 48 of them are third I've been Hey, I've been spending some time in Cleveland. Yeah. See? Cleveland Cleveland Cleveland cash flows. In Cleveland you got the you got all the sports teams all Cleveland has the most uh sports teams. And it's all in one area, dude. They go ham over there, bro. Most of America's third world states. That's true. It's really true. doing something like that? Getting a Cleveland home? We're thinking either Cleveland or Vegas, but it's probably leaning towards Vegas. Vegas is becoming second world. I I would buy Vegas to flip. Yeah. Cuz Vegas the people are moving into Vegas and the Vegas in Las Vegas and
8:26 Arizona, they're moving so fast in equity. I would go if you're like tight on cash first, I would go there so that that you get the rush of the equity and then move it to the East Coast cuz think about it doesn't grow fast on the East Coast. You're looking for more cash flow on the East. That's what you were saying. Or cash flow on the East. You know what the problem with him is though? He knows everything he's not going to do ████ That's a cool That's a cool thing. That's a cool thing I love about Nick. Can you help with that? Can you shake me a little bit? You provide shaking. Is that part of your services? And head wacky. Can you Can you slap me around? Can you do the I DO THE DASH THING? NO, not the dash. Dash motivates people, dude. I watch his videos all the time. I'm getting LVP for my floors, dude. That's all I think now is LVP. I'll put that ████ on my wall. I got a question. For all of for all of our audience
9:17 members, right? They're like, "Well, I'm already out the game cuz I ain't got 200K. Is there Is there a way for someone with zero moneys to go out there and try to get something?" You need a little bit of money. What was a What's a little bit? What's a little bit? What's starting? CUZ 200K NOT IT'S HARD TO HAVE 200K. Let's say you don't have 200K, but you got to have a mouth to hustle. Mhm. Oh, okay. Because what you can do is you can do I didn't know hustle was where you were going to go with that mouth, but I like it. Not the way you're you're hustling, not like this hustle. Yeah, yeah. But I'm talking about like Hey, roofie, baby. Yeah. You have to be able to convince somebody to sell their house. So, a lot of people who don't have They can convince people like, "Hey, your home, you know, is probably not going to sell for a lot on the market and you want to get rid of it quick. I have a buyer for you." Oh.
10:07 to get Yeah, they have to wholesale to get the money. is Put some glasses on. And they wholesale and they wholesale for a season. They wholesale for a season and then they have the money to buy. I wholesaled a commercial building for my first time last year. Oh, yeah, dude. You did good with that. Yeah, if you or you wholesale enough where now people bringing you deals. So, there's agents out there, they're looking for finder's fee. So, if you have enough agents looking for finder's fee, you have enough uh investors, then you're just the middleman working out all the deals. So, that So, people out there watching, like to get in the game, if you don't have money, then but if you have time, then you can go and start What would they do? Like cold calling, knocking on doors? Uh what I would do first is um I would see first of all, where you going to you where you want to do it in, put up signs close to the freeway like, "Hey, I have a cash buyer buy your house." And they would just start calling people and asking them, "Hey, I have a cash buyer. I have a cash buyer. I have a cash buyer."
10:57 And then so, you're looking for what's called like a off-market deal, right? So, it's not even on Zillow, Redfin yet. It's just people that are like, "I'm thinking about selling, but I don't know." And then you talk to them and try to get this house contracted. Do you have to have a cash buyer first, though? You Most of them they don't, but everyone walks around like they do. So, you're looking for buyers who don't want publicly to be They don't want it to be publicly known that they have to sell their house. Mhm. People going through divorce. You know, they don't want other people knowing their business. They don't want their neighbors going in and out of their house because like, "Hey, me and Suzy broke up and I don't want people knowing that me and Suzy broke up. Like let me secretly sell it and bounce, you know. So you just door knock and be like, is the man of the house home? Or I'm a he's a real estate sales Or the house is pretty busted up and someone needs to bounce right away, you know? There's there's there's people out
11:48 there who need to sell to to need to bounce right away. I'm doing a survey on marriage happiness. What they're doing is basically being middleman and then they'll be like, hey, I'll get the contract for the house for like 500k and then I'll find a buyer for maybe 520 or whatever. 550, yeah. 550. And then you get 50k in the middle Correct. for making that transaction. And that's when you when you start flipping a lot then you'll start seeing more deals. Like I have a close friend of mine, he he makes 80 grand every couple months cuz a deal falls on his lap and he doesn't have the money to buy on himself. He'll just offload it to somebody. And he didn't all he did was just connect two phone calls. He's just a networking Oh, so I got a question about that. So like when I was living in the Hollywood Hills, I I felt like I saw a place that was that where I was like dude, somebody if they knew what that was would probably make a lot of money flipping it
12:39 cuz it was like this ugly ass shack kind of hidden. And then a friend of mine who was a who's a realtor was like, oh bro, I was like I described it to him. He's like, oh let me know about that man. I'll give you a finder's fee. But I'm like thinking like what stops somebody from just not giving you the fee after you tell them? Like don't you need to Yeah, there's there's every state's going to be a little bit You can get the contract and you can you can assign it to somebody. It's like me go, hey, sell to me for 550. Cool. Assign it to me and then I'm going to assign it to this person. Wow. Interesting. that spread's already inside. So like is it a It feels like it's a bad sign that if the if the dude just like just tell me. Yeah, never tell never give them the address. Get them yeah. Cuz he wasn't like let's draft a thing and then I'll write the thing like he was just like, oh yeah, tell me what it is man. I'll give you a finder's fee. It's like that feels too casual. Like I feel like you I won't hear from you ever again. I need a notary right here. Yeah. The The did it is we had we had it under contract because the owner was like,
13:30 "Can you buy my business and the building?" And I was like, "Well, I can't buy the building." And then my friend was like, "Wait, maybe we can cuz it's under market value." And then so You didn't tell him that though. You knew that. No, no, we knew that. So then cuz we looked at all the buildings around and we're like, "Oh, there's like he's giving us like a 3 400k discount." Or whatever it is. And then there's like what So we're like for sure we could get like at least 100k just like if we find a buyer for the building. And then so we got it under contract. So it was technically ours to sell. Wow. Yeah. Oh, wow. Okay. Yeah. Who ended up buying it? A real estate developer. I didn't know it was called wholesale. You lied, Joe. And then we did it and I was like, "So that's
14:21 what wholesaling is. That's so cool." Aw, man. Cuz you're just It's like It's like being Finding leads for people, huh? Yeah, you're literally finding leads. That's a big deal though. Uh it's called a Another term they call it they call skip tracing where they're going to they can hunt down people and then and then that's how they they And there's apps for that. You could literally go You have the apps there Some of them are free, some of them you pay for. You go to address, you type in the address and tells you the phone number of the person that lives there. For real? Yeah, and so you can start calling. You just start calling every single door literally on the street. So when you call them and the phone number doesn't work, that's the best lead. That means they can't pay their bills. That means you can roll up right away. What? If they don't answer or their phone number's disconnected, that means the la- letting go your cell phone is the last thing you're going to let go of. But if it's time for you to let go your cell phone number, you're you need to sell. Then then you can go door knocking. That's a different level of thinking. But that's like so I always tell people
15:11 too if they don't have money like you either have to have equity or you have to have effort. So if you don't have money then you got to put in the work. You got to door knock, call, and uh try to reach out to people. But like kind of like when you like are skimming Zillow and then like kind of get comfortable with the area you go, "Oh ████ this one is kind of undervalued." You can start to see patterns if you really look at it a lot. Even if you go down a street uh for one of our exercises that we did in Thatch's class, me and my other real estate partner, we actually went door-knocking and I was like, "Oh f███." I got kind of nervous. I was like, "I never just talked to people." Why you actually went door-knocking out there? With your buff ass. I felt like what up like dude Some of your house. This feels like ████ 90s going gamebanging like No, but we printed out we did what Thatch said. We printed out ████ paper, has our phone number, has our company on it and we would go in if they're not there you leave the paper so
16:01 they can call you and you you do find a lot of people actually are distressed. But they're just so like Just leave me alone. I just want to fix cars. And they don't know that you can actually provide a solution if you can find them a buyer for the house which will solve like half of their debt and then they just have to move two streets down where it's a little bit cheaper. And so a lot of the times it's like cuz you go into thinking like, "Wait, am I stealing if this thing is under market and then I find another buyer?" Like why don't I just connect these two people but it's because of you you're able to connect these guys and then this guy doesn't have the means or even the time to go look for buyers. So you are kind of uh solving someone's problem and that's what a lot of these wholesalers are. They're just like going around and people they need to sell, they don't have time, they don't have time to list, they don't have whatever and everyone's situation is so different.
16:51 And then after I we just did one street I'm like, "Oh ████ I I understand why this whole like market exists now." What's your Hey dude what's your Play play this out play this out. I'm I'm the person opening the door. I want to see what you would say. I'm like, "Hey, do you want this house?" Yeah. Oh cool. So I'm me and my partners are just here trying to look for houses to buy. Um uh how much did you get it for? Can I ask you like I'll go like can I ask you uh so Thatch gives us a script and it would start with Who's that? Who's that? No, but there's like a whole script and he just you start really Can I have some of your time? And then they're like some people are like, "Oh yeah, sure." Most people that aren't in LA are like, "Hey, what are you doing around here?" Oh, right. Dude, California's in Vegas? Like I had so many knocking like solicitors. Really? It and it's and it felt like my when I lived in Gardena in the '90s.
17:43 Cuz in LA in the '90s it was normal Do you remember people knocking door-to-door doing sales? you like ████ bubble guns? Yeah. Would they have like a vacuum? Yeah. Or like carpet cleaner? Yeah. Or encyclopedia? Yeah. Yeah, and and LA's tougher cuz like the minute they open the door they see you can't kind of talk to you. They just go like this. But in a lot of states they're still normal. They're like talk to you. Or they'll look out the window they'll while they call the cops. Like, "Who are you?" Yeah. What's up What's up with the the the third world states that you have a license to do lending in if you do have some money? They're desperate. They're desperate out there. Like people like are in bad positions and they got to bounce. Dude, let's go find So think about it. Let's find some deals, boys. 2020 2000 2000 2020 2022 the market all sudden housing market just ramped up.
18:33 So they're sitting on these homes that they bought before 2020. And now there's equity. But now because, you know, the interest rates are high, cost of living's high, they can't afford to live there. But they have It's like you sat on something that has equity and you're in a bad position you got to sell. So they sell at a profit anyway. Correct. Well, how Okay, how does that work if the interest like they bought it in 2020 but No, they bought before 2020. So Oh, yeah. So it's so Oh, they got a their interest rate isn't locked in. Oh, it's locked in but let's say you bought something You said you bought this thing for before 2024 three bucks. Yeah. All of sudden rates pull back now it's worth 10 bucks. Yeah. You didn't do anything with it. Let's say you didn't have a credit or you actually didn't go out and refinance or sell it. Now you bought something for three bucks that's worth 10 bucks. So you have seven bucks. But now you're in some tough times like I got to get rid of this thing. I got to I need that $7 now. I need this I got to need that $7.
19:24 You know? But think about this. Also homeowners insurance like in Florida, Texas, places homeowners insurance have gone up so much that people can't afford the mortgage payment with the homeowners insurance with the cost of and they didn't get an increase in their income. So now it's like I'm forced to sell this thing. Bro, that I used to work in mortgage, too. And and I used to like call people up and ████ And then I was like, "Dude, this feels weird." He goes, "No, look. You haven't seen the whole process yet. Like when people in that situation have like a hundred K just locked in the house, they they're they they want to let like let it out so they can retire. So they're like, "Yeah, no one's going to buy my ████ whatever. It's too, you know, complicated." When it's refied and or or when it's sold and they can pull that money out and they can just like downsize and get like an apartment and
20:14 chill cuz like all their kids moved out. And I'm like, "Yeah, they're super happy." And at the end of it, they're all happy cuz they got their money out. And I was like, "Wow, I didn't even think about it that way cuz like some of these people are like they get a ████ five bedroom home and then all their kids move away. They're all lonely and they're by themselves in this house and then their spouse died. And then they're like, "I don't want this ████ no more." Yeah, and then but then they're they have like hella money in the house and then they don't know what to do and they have all these like agents and then or maybe like the they can't they don't know how to refi cuz they're too old or like whatever it is. And I'm like, "Damn, I there's just a whole like market out there of like you have to approach them because they're not going to do anything." That's one of the biggest But they're starting to reach out now. The reason why is Fash gave me a script. And I'm going to read it.
21:04 The reason why it's become more popular now cuz you can see hedge funds are getting into it. So now there's something called home equity agreements, home equity investments where they will give you the money you need to live and survive, but after 10 years you have to sell or pay them back, but they're sharing the growth of your equity. So there's already So if companies are reaching out now, it's becoming more, you know, That's interesting. That's so smart.
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