Well, let's talk a little bit about how you got started,
because you're only 23 and you got 110 doors already.
Right?
So obviously, a lot of people would love to hear your story
because it's only been three years.
Yeah. Three and a half years. Got started as a real estate agent.
I was originally going to go to really just college.
I was my big thing.
Downloading college advocate ended up
going to Tacoma Community College because it was cheaper.
Yeah.
And someone online messaged me through Facebook.
They said, You a real estate license and drop out of college.
I did what any rational after deal.
And I listened to this stranger on the Internet.
So I dropped out of college,
got my real estate license, was actually in opposite order, and
I proceeded to sell zero houses for the first six months.
After seven months, I ended up selling and did back
one of my old gymnastics buddies.
I coached gymnastics for years,
called me up and said, Hey, you know me, buy a house.
I said, What if about a duplex?
I'd read that word ad by Robert Kiyosaki.
And so I won by debating.
Did you buy it in Bremerton about an hour from Seattle, where we're both from?
Yeah.
And that was the start of my career.
Three months after that, I ended up buying a seller financed
while black zero Money Down that was on the market.
How did you how did you figure that one out?
That was a that was a fun, roundabout story.
There was another broker in the office who was doing the opposite of me, making
tons of money on a lot of deals.
They had a client who was under contract on 20 unit and a little town called Spike.
I don't want it's like, yeah, it's too.
Russell They're in high school.
Really.
It's a Grant County area and 22 units.
It was eight or 5 to 6 by 1012 all seller financed with a nine for 5300 rand down.
Well the person who was funding that down payment private investor
did not want to bond this person.
They didn't believe they were going to do good by the property.
They were also the managing broker of the real estate agency that was out.
So they came to me and said, Cody, what if you bought this thing was
the story is worth more than the real estate now.
And that's where I learned from. That's a big thing for me.
I love the story and this big full story and I think you can do it
and it would cash flow, 5000 bucks a month, zero money down.
Well, the problem was we needed a one week extension for that deal.
And he was three grand.
He was going to end it up, you know, to give you all that all my life.
It was a perfect deal.
Another one we sent from the seller and they said no.
So I didn't get that deal.
And I looked on the MLS the first time I heard a seller financing,
I ended up listening to Carlton Sheets at an audio book school.
I had a 1991 Miata, so I was driving over there.
I was listening to Carlton Sheet and then I read a book Deals on Wheels
by Lonnie Scruggs, because my mentor at the time gave that to me.
I was the real estate broker. Nice.
And so I was reading all this and I looked up seller financing on the MLS
and I was at Bob Plex and I called him up.
It was still available
right next to Microsoft, next to church, next to the school.
Nice.
I asked the broker how they want to read it out.
They said, Well, they laid out the terms and they accepted the offer so quick.
Back up just a little bit.
I feel like there's like a lot of terms
you've got going to understand and things like that.
Basically, you knew we wanted to get into multifamily
and you looked at seller financing.
So can you explain for people that don't know what seller financing is
that you would not have been approved for traditional financing
because you had no money coming though, So you instead went to these sellers
and said, Hey, let me buy the building from you if you finance me.
And so what?
What's the benefit for those listening to the seller for financing you?
Why wouldn't they just sell to somebody that can get traditional financing?
Most people pitch it off of tax benefit.
What I found to be true, I used to think that was true.
It's not. That is not the reason people do it.
There's a point where people have more money
than they have like like it just they get to that point and it's easier
to pass a note to their kids
as a financial instrument than it is to pass real estate.
As most kids aren't interested in their parents business.
I've seen that to be different.
Yeah. Yeah.
Okay, cool. Right? I would agree with that. Yeah.
So what you find has to be perfectly.
I mean, things have to be aligned, but he's right,
you know, there is the kids want the annuity of the payment.
They don't want to manage the property.
So now they're getting a monthly payment from you
and they're not having to deal with the actual business support for that.
And the thought process is instead of giving your child a bunch of cash
or a property that they could mess up, they could mismanage and let a whole bunch
of vacancy and destroy value, they just get income, right?
They can blow all the income and get it again.
And it's tax efficient because it comes in over a period of time.
Right. So it's not a lump sum, though.
Was there pushback with your parents on what
initially, Obviously not now because you're successful,
but initially were they're like, Cody, like, what are you doing?
There was a lack of understanding.
Oh, I like that.
I like that term. 23 years old.
It's me.
It's very diplomatic. Like, what do they say?
Because I know people that are listening are dealing with that, whether
from their husband or wife or their parents or whoever.
Until you do it, you haven't done it and you don't understand.
And in theory, I knew what I was doing.
But practical application, I couldn't simplify it down
to where they could understand.
It wasn't their fault, it was mine.
But they had never done it, never owned a duplex, never owned a rental.
Right.
They own the house.
Then they split
and my mom kept that house and my dad went out and bought another house.
And that was in 2008.
And everything was an inflated price. Yep.
Yep. In fact.
Downs Yeah, it took years for him to build the equity back up, but he held it.
But they didn't understand
because they they couldn't look to anybody in their sphere.
Might have done corporate route.
My mom worked at State Farm for a long time
and then ended up moving to a law firm after a while
to manage teams so they didn't understand the world.
So when I bought my first rental, they're like,
That's really exciting, but you have 1,000,001 in debt,
so why don't we jump into your business partner?
Okay, so now here we go.
Now, this is great because
these we actually laughed about this because this happened for my partnership.
Typically the spouse or the significant other just has a deal
and they're on the radar that can go, I've told you guys.
And if do either, hey, this is a goal or there's something fishy about this.
And my very first partnership before I met Christian, he worked at the same company
I did and his wife and they'd been married for four years.
I don't know about that guy talking about my job.
I know I have it.
Yeah, that's true. And women do have like that sixth sense.
And, you know, you just at least need to take it into consideration
when you're, you know, picking a partner business partners, Christian.
And then I ended up becoming really good friends with Danny.
His wife Jim, at the end of the day says yes or no to that.
Yeah, we did.
Chris should be leaving Christian and myself.
We did our partnership.
Is it 50/50 100 odd or we split everything 5050.
I can't value someone's honored percent being worth more than less than mine.
Right.
Because they could be sick.
Chris, Things can happen, but I just trust that he's going to do his best.
Yeah, and we don't compete.
We don't renegotiate regardless.
We've got a business cycle.
You build the portfolio, you stabilized, you optimizing payroll.
Well, this has been obviously amazing.
So, Cody, what's the best?
I know you have a big presence online, too.
So let's talk about that.
I you tell everybody what it is.
Yeah.
So I'm on mute yet and coding Christian, that is our multifamily strategy.
We talk about our strategy.
Yep. And we'll put that up on so everybody can check that out.
Yeah, of course.
And all that.
And primarily just how do you buy and how do you never lose it?
As we have three criteria when it comes to buying real estate,
how you buy it, which is you line up your deal and your debt, then your equity.
I think that really is it, which is long term trade debt in cash.
But that last part is really important.
I remember I was I always tell this to her, don't
I always I go see, like, what are you going to stop you know.
Right.
What I say when it's not saying, fine, that's it.
I'm not kidding.
Like, I have to be enjoying what I'm doing at Rush
at this point and I'm enjoying everything I'm doing right now.
And you're right, that is a big, big, big piece.
Have you got anxiety and stress and you're freaking out, then it's
probably not worth it, right? Thank you. This has been great.
Thanks for making the trip down here. All right.