0:00 but that's the only Reas I never get anybody to ever say I lost their money nobody cuz number one I don't take their money I I don't Syndicate right and number two if they ever have me evaluate a deal if it's a bad deal I tell them not to buy it so I never had nobody ever tell me I lost any of the [Music] money all right I got a question for that what happens when somebody comes back into your DMs or contacts you somehow and they're mad and they're blaming you yeah for something they did yep when they thought they were following what you said and they go you lost me money on this deal yeah you know what I can tell you I don't get too many of those yeah which is a blessing that's tight yeah I don't give too many blessing um the only thing that someone
0:51 ever DM me and say something like oh you know uh uh you you're using uh your student who success and promoting them so you get more recruits for your for your mentorship duh what's wrong with the testimonial that's like that's the best advertisement ever if someone buys one of our drinks right and then they go this was delicious it's like oh you're going to use your customers to promote your freaking business that's that's illegal I I get that from a bunch of hating you know ex- students yeah because now one you know they either a didn't do what I asked and they didn't give result they pissed and then they use something like that but I hear that more time any other than I lost money on the deal cuz I have
1:42 always tell my student cuz I have every tues I have live class and and the class is called deal no deal and so they bring me their deal in class live and they tell me that's I bought this for 472 it's going to cost $80,000 here's the rehab here's much money I'm putting down here's much the rent is here the mortgagees D here what I'm going to do in this property what do you think and I we evaluate live in class from everybody and I'll give them my thoughts and I ask him bu a question but it's really Cammy in the backg true H give me the answer up what do you think what do you think and his uh he's got a microphone or earphone and at the end of the day I tell them you shouldn't buy this deal here's why like this I just told a student the other day you're on 16th Avenue which is the bigy street you're on the hillside and you're about to buy this for $800,000 when it's only worth 700,000 cuz I know the area and the guy was like God damn okay and there was cool so when I ask a student like
2:32 tomorrow a bunch of the student have bought some property here recently in California so I asked them hey man I want to interview your story or you want you want to uh uh let me interview you what you bought recently and highlight you and show you show other people what you bought a lot of them like oh bro that' be an honor because they want me to share the story to the world yeah every one of them I ask permission you cool with me sharing your story yeah and the people that hate oh you using these students so you can promote your business come on but that's the only re I never get anybody ever say I lost their money nobody cuz number one I don't take their money I I don't Syndicate right and number two right if they ever have me evaluate a deal if it's a bad deal I tell them not to buy it so I never had nobody ever tell me I lost any of the money those are the two reasons why so it's a blessing that's great it's a bling
3:23 nobody's ever like thought they were doing what you taught and just did it wrong I'm very very strict on my criteria standard oh okay I not like these people to bend it so they can do something yeah I tell them stick to the standard and you're gon to have a lot of peace of mind cuz I want them to have peace of mind I want them to have abundance but don't sell out on your peace of mind just so you can buy a deal so you can tell people you bought a deal that's what I do like about your content the first thing that made me attracted to your content way back in the day was how simple you make things M and it was almost like um if the deal can't make sense on you just counting on your fingers for forget about it cuz it was like I think the first one that I saw that like really stuck was like the arv which is after repair value needs to be like uh 75% of the all in number yeah
4:13 yeah so it's just like things where you're like instead of having to fill out a crazy spreadsheet you can kind of just ballpark it on a napkin if I bought this then after I put this much in when I get it appraised again is it going to be 75% and you can almost like pencil out a deal right then and there and so talking about is that there's three there's three thing that you always need to know to determine a deal with no deal if you buying a house that's a fixer not a turn key you want to know what the price you buying it for what it cost to rehab it and what the after repair value is MHM if the purchase and the rehab add up to 75% of the new appraisal you got a good deal it's it's 25% margin the reason why is this reason when you go and refinance this property let's say this is a ion dollar and you all in for $ 750 500 plus
5:03 250 rehab that's 750 this property now is worth a million bucks right when you go to the bank you go hey I want to refinance this the bank send out an appraiser and they go house worth a million and the bank says I'll give you a loan up to 75% of this 1 million so then we're going to give you a $750,000 loan so if you're $ 750 and less your original down payment go back to you if it's less than 750 you get the down payment and you get extra money and they still Finance 100% of your deal so the rule of themb is if you ever rehab a house if you get to 75% or close to 75% you got a good deal if you did all the work and it's less than arv that's a dumb deal now you know how I came up with these ideas when I started content the content Was Made Simple for my kid to understand it and my that means I'm
5:55 12 I still don't understand it still not getting it I'm 11 that's an interesting way to to go about it yeah what kind of stuff did did you actually learn from cuz I remember back you were saying that uh that was like mentoring you a little bit Yeah was like all the stuff we're talking about right now like after repair value and it so it just it just made sense cuz like there's like all kinds of crazy ass metrics in real estate like cash on cash return cap rates like there's a lot of numbers and so if you want to be a ████ nerd like uh you go watch Bigger Pockets they're talking about all that stuff all the time and it's good cuz like the more precise you get the less risk that you have but then also you have that much more hurdles to get into a deal cuz now you got to master a whole new vocabulary just to even get your foot in the door and it's daunting and like I don't know what yeah but with the way he's talking about it where it's
6:46 like okay just it's simple how much did you pay for the house how much are the repairs and what is it worth afterwards and what is it worth after is it under 75% if it is then later when you get the actual loan they give you your down payment back then you're like oh I can just take this and then rinse and repeat the process so things that are simple that I feel like are repeatable sticks way better with me cuz then I don't have to go oh ████ like it am I smart enough did I do the calculations right you can kind of already go okay this is generally what you're supposed to get so even like the 1% rule of like whatever you buy the real estate for you want to get it to rent 1% monthly that is so much easier than actually running a crazy spreadsheet what's the 1% rule again if you buy a house of 350 uhhuh if you can get it rent for 3500 that's 1% Ru that's a good rental property that's a good rental property but it's hard to get in expensive area yeah so that's why
7:38 in the spense area they allow adus and that's how you compensate it right but all the cap rate all that stuff the highest one the best one to look at is margins cuz what I'm talking was margin right you got 25% margin you just got a grand slam you got 20% margin you got a triple so does that mean you're looking for a house that already has that Equity when you buy it nope you got to create it oh you can't buy turn key because the owner won't give it to you for 75,000 off I me 75% off I mean 25% off yeah so you got to go create it and so I'm assuming in your like what you teach your students is how to to understand like the Contracting part of it cuz they have to understand building improvements cuz I I
8:28 heard that like where a lot of people make a mistake is they buy a house and they wanted like the best materials and then like marble everything and they want it really cool but then it's overvalued to where it's like no one's going to buy it that's why you see me making videos on seen those videos yours that's so I always make videos to show people here's the type of flooring I put in my rental I love that video right lvp here's the type of paint I put in my rental so it's like this is how you make it beautiful but cheap good yeah yeah that makes sense it's so clear I like I like those is because you're very straightforward about like no this is what it costs and this is what it is cuz my brand when you think about it right is how to teach people how to own rental yeah and so everything I have to teach him is what do I want to know what um what type of front door should you put in a rental what type of floor should you put rental what type of cabinets you put in a rental everything is rental
9:18 rental rental rental so it create a brand that this guy teach how to own rental yeah he also buy rental so there's no confusion on what I do for a living yeah see so on the like the final stage do you also teach people how to be a landlord or pick a good property management company to do okay both I see that's why you see me talking about hey uh the video I made was uh uh here's how many bank account I have for all my rentals right cuz you make a LLC for each rental uh some I do and some I put in my personal name with big umbrella policy oh a lot of people don't realize when you go and try to get permanent financing they don't give you loan on your LLC unless you're in the commercial space oh cuz they want a personal guarantor yes and and and they they want
10:08 they want in your uh in your personal name so if you went out there bought a rental and you bought it under the your LC the bank won't lend you the money unless you go to private lending or Harmony lending or commercial loan but residential regular they don't put it in yeah cuz you could bankrupt the LLC and run away so what you do is you go get a loan underneath your personal name right and after you get the loan you can always transfer that uh property into a LC oh okay yeah oh weird yeah and I only to do it for protection you know what I mean but you can have protection from from umbrella policy what is that when you say umbrella policy how it is a big insurance policy that covers a bigger uh like you know sell like a car insurance right for a car yeah but they have houses where you can get one for 500,000 get one for like a million 10 million 20 million you know what I mean and it just covers everything cuz like like the
10:58 general like school of thought is if you have like let's say five rentals and if they're not all one LLC let's say one guy slips and falls down the stairs yeah he could technically sue for that one and then his lawyer is going to advise to sue for all homes so that's the reason why they do llc's for each so that they're so your it's your protected right okay but then the problem is if you have to be the personal guarantor to when you're buying these homes um you got to get the loan first and then you put them LC afterwards yeah so you you kind of want to show you have a lot of you you want a lot of money in one account not a little bit of money in a lot of accounts so that's why he has to get the umbrella policy to do that so that he can buy a bunch of homes Co yeah lot of lot of little things yeah but that's why I always say like when I when I get these guys that say let me see money I was like yo bro let me teach you how to do this yeah cuz that's more work for you if you have the money then why
11:49 would you do the work when you can fund yourself yeah thing that was crazy was uh you sent me a live link once to like a private seminar to a bunch of those guys so I was in a room with a bunch of those dudes and I was like oh ████ this is crazy like people in NFL Major League Baseball whatever and then uh like you and I think two of your other partners were like teaching about like um how to build out apartments and you see those dud like man that's cool partner my my my uh my my commercial Banker my commercial Banker cuz all those dudes always ask you about all the time bro I get them every day every day I get them yeah that's that's so cool yeah every day I get somebody like got DM time to leave business business and going to Real Estate about time dude
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