Okay. So guys, today I've got Cole coming in. He's going to be buying his first
out-of-state property. This is the man right now. How we doing brother? -How you
doing my man? -Excited. -Love to be here. -Alright. So, what we're going
to be doing today coal is I'm going to actually take you in the back room and
we're going to actually... I found a property that I think is perfect for you to get
started with. -Let's go. -And then I want to sit down and really go over the details
of how we're going to make this happen, okay? -Let's do it.
-So, how you been by the way? -Great. -Doing well? -Always. -You ready for the holidays?
-Oh, yeah. -How much money do you have set aside for this
deal that we're doing? So, I've got about 30 grand I set aside from ready for the
deal. -Okay. -Yep. -Derek, how we do, man? Is this the property that we talked
about? -That's it right there. -Okay, awesome. So, guys... What we're doing
here... Cole, I want you to see this. So, we're going to be running through his property.
Where's this one located? You have it pulled up here? This is going to be more of
our cash flow markets. -Okay. -Florida for growth is going to be in like 50,000-dollar range, 55,000. cash
flow markets give you a higher cash on cash. They give my lower appreciation. It
averages out to a killer ROI. This one is located in Memphis 5057
Darlington Drive. And I pulled this one up because our total cash on cash and
appreciations 29%. So, we're definitely crushing it on the numbers. But I am a
little concerned because I know you started with 35,000 and then you had
some Christmas spending. This guy's going to need about 27 grand.
So, let's go actually sit down and brainstorm. He's got about 30,000 for his T-O-P
right now. -Alright. -So, what we're going to do is we're going to sit down.. I'm going to
walk through the numbers. -Awesome. -We're going to
barge into teen transformation and the borrow the conference room. Here's what's
sweet about this deal: These homes run out really fast in like 4 weeks. -Okay.
-We get a super high cash on cash ROI. -What's up, guys? Guys, how we doing? Do you guys
mind if we interrupt the party. You're welcome to stay and I'm just going to
be showing Cole here his first deal that he might be buying here in Memphis
Tennessee. Give up for Cole. If you want to be famous around here, just buy real estate,
right? Here's what I want to talk about on this deal. This particular house right
now, this has a 91,000-dollar purchase price. -Okay. -Okay. So, our average
is 142,000. To come in below a hundred thousand we're going to have a lower total
out-of-pocket. T-O-P. So T-O-P here on this particular property is
27,200. -Okay. -You'll notice that it's more than just the 20% down
because we have some rehab that we're setting money aside. We got some closing
cost. We're going to wrap in as much as we can if we actually make the move on this
to get it on a contract. -Right. -Here's what you need to understand: We don't
have this house. But we could have in the next 24 hours. It just hit the market. Our
team's aware of it. And if we don't get it, someone else is going to get it. -Right. -We
win because we're wicked fast. -Exactly. -Right? You look like you work out.
-I do. -You win by like literally pushing it to the max on the weights.
-Absolutely. -We're on steroids in our real estate
department. So, on this particular one, here's what you need to know. Cash on
cash means for the money that I am putting in, how much did that am I
getting back every year? This one is 12.29%. We're
normally in like the 9% range in this particular market. So, this home
has more cash flow than normal. -Right. -The other thing I want you to be aware of is
that if you're just making your payment, there's also a principal reduction. Part
of your payment every month guys goes to the bank. A part of that goes to interest.
The most of it, right? You do a 30-year mortgage and 95% of it goes to interest.
But there's a part of it that is actually going to principal. You're not
going to get that money today but you get it when you sell. So, in this case,
your ROI bumps up to 16.45%. Basically,
4.15% of your payment is going towards interest. But you are going to
recapture that. So, that's what wants us to 16. -Awesome. -But if we also bring in
the appreciation into this particular market, our ROI is going to bump up to
the fold 29.32%.
-Awesome. -Yeah. That's hot. -Yeah. -Listen. I tell people if you can get an ROI over
20%, how should you feel?
Excited, right? So, for me 25% is like my
standard. I want to see 25. If I don't see 25, I'm not excited. 29 like gets me freaking
jacked. It's me really really excited about. This
deal is good through the roof. Here's my only concern on this particular one. One
is can we get it? All we can do is make an offer on it. You had about 35,000 set
aside. And then for some reasons, you shared with me you're at about 30 grand.
-Yeah. -So, 27 is going to get going here. -And I generally like to have $10,000 set
aside in a reserve. -Okay. -So, I wanted to give you a couple of options today.
By the way, when you by out-of-state real estate, what's the number-1 problem
with buying out-of-state real estate? Okay, I just had one of my partners being
the biggest no-no. I found out about it, too late. One of my partners was so
nervous that he went and hired his own property manager. And it's 3 months
later, guess what? His home's not rented. And now they're trying to run it out for
like $300 less than we said it could be. And we finally put our foot down and
said, "I'm ditching you. You're not going to be my partner anymore. You freaking broke
the rules. You're breaking everything." Like, "You're out and I'm done with you."
I'm done. We're divorcing. Or we come back in. They came back in, we found a tenant
like within a couple of days paying at the rate that we quoted. So, you don't
mess with the system. The most dangerous thing about estate real estate is the
property management. And you only win with property management if you're doing
bulk deals. Because if you go... And if someone's going to watch this video we like,
I'm going to find a freaking awesome deal in Memphis. And I'm like, if you don't
know your property manager, you're out of state. You are worth on this contract by
the time it's ran up, you're worth about 100 bucks a month to it.
How much loyalty can you demand for 100 bucks? Guys, you're a number. They don't
care who you are. This is one of 500 homes those property managers. Do you
know what I get? I get loyalty. Guess what happens if I don't get loyalty? Then Big
Brother will like step on their spine and break it. And like the creditor move
it freaking rip it from their body. And what I mean is we'll take all of our
business elsewhere. And that's kind of crushing for them. That makes sense?
-Yeah. -Okay. So, property management is somewhere where you you need leverage.
And leverage comes in volume. -Right. -Here's what's going on. There's going to
be about $2,800 left over. And I'll see what we can wrap in that can
help. But we're probably still going to be 5,000 short for what I like to have
in reserves. -Right. -So, I have a couple of ideas for you. You partnered with your
brother and sister. -Right. -And you partner with your dad. And you guys, how many
homes do you up to you right now? -Four. -Okay. You up to four homes.
By the way, how much money did you put into those homes? -[Gestures "Zero"] -Guys, that's a clapping
right there. That's freaking awesome. [Crowd Applauding]
If we step in and actually ask them to bear it on their credit. Their accounts
have higher Sleep Well At Night accounts. -Okay. -So, what could be better is to
actually buy the house with them. Actually bring them on as a credit
partner in the family. -Okay. -And then that way, it solves your credit situation. And
it stands to have enough money in the Sleep Well At Night account for their
other homes that we can still move on a property like this. -That's awesome.
-What do you think about actually pulling up some money and actually doing some
deals with them? -Honestly, I feel great about it. Do you feel good about it? -Awesome.
-Yeah. -Awesome. Because if we do, I'm comfortable
making a move on this one and actually getting the deal going right away.
-Let's get it done. -Sound good? -Yeah. -Okay. What I recommend is that you get them on
the phone. -Okay. -GM with them and just say, "Hey, if I park my 30 grand with you and
we buy our next deal using your credit..." You need to ask what are you willing to
give them look afford for doing that arrangement. And that'll make the next
deal go down. -Awesome. -So, can you do that? That's your next step?
-Yes, sir. -And we'd want it to happen when? -Now. -Because we want to get this property...
-Now. -We want to get an offer going today, okay? Guys, that's how you get
out-of-state real estate freaking cranking. You've got to move fast. You got
to move at the speed of light. I have a whole team of people that do nothing but
research thousands of properties every single week to find this. And the reason
why I beat out all my competition is because I'm not looking at 5 homes or
10 homes the way mom and Chop. Mom and pop investors don't even do that. They
look at like 2 or 3 homes. We look at 2 or 3 thousand homes to
basically say, "Hey, what is the best of the best of the best?" And that's how you
get to this number right here. -Awesome. -But here's what's happening for Cole
that I'm loving right now. In real estate... Guys, you have to be able to get creative.
Most people don't do real estate because they say, "Well, I don't/can't use my
credit right now." Or "I don't have the money." Like, how I built all of my wealth
is about recognizing that you're not supposed to own assets? You're supposed
to what? You're supposed to control assets. That's really what this game is
about. You can control the assets that are out there. There's enough to go
around. Share with your family. Dude, they share with you,
share back with them. They're more stoked about everything happening and going
down. And everyone's doing more real estate. Your opportunity cost of not
getting these ROIs right now is stupid. By the way, if you're
watching this and you're not a subscriber, guys should they fix that?
-Yeah! -So, guys get your get your subscribership on. Make sure you ring the
little bell. That way I can remind you about the videos that I pump out
freaking every single day dedicated towards you. Other thing is, if you click
the link below, you have a chance to learn about partnering with me, getting
access to deals like this and having it done turnkey. What we're doing is Cole is
making strategic decisions. He's not working. He's not going to Home Depot and
he's not getting on planes. His job is to help run the team by simply making key
decisions and then we do everything else. So, if you like that... By the way,
has it been good? -Awesome. -So, I want you to click the link below.
Dude, how old are you? -22. -How old are you? How are you? I hang out with everyone my
age when I got started in the game. And we're certainly having fun. I mean that's
for sure. But like literally every one of you has to have your own game plan like
Cole on crushing it making more money beyond your needs so that you can be
throwing it down in real estate. Because at my age, when I got started and started
putting the homes in, I've now been able to set those properties loose growing
and expanding and growing expanding. And it's what's created all this wealth for
me. So, the one thing that you have right now is your youth. Most people will not
allow time to impact money until they're in their 40s or 50s or 60s. But you know
what? People that get started in their 20s have an advantage over the 40 year
olds. It's because you started 2 decades
early. In 2 decades of time on a small amount of money can do insane things for you,
that make sense? -Yes, sir. -By the way, 29% compounding in 3
years can double, right? So, by the way, if you're in your 20s, early 20s and money's
doubling, is this good? -Yes. -What it means is that by the time you get your 30's,
you just have more options. That's all money is. It's more options. People with
less money have fewer options. And if your options are too few, your life sucks.
And if you have more options and you have more opportunities, you can set
yourself up for this greater... Just greater life. So, Cole. You know your next steps,
right? -Yes, sir. -Get cranking on it. You'll know your next steps. So, you guys know
your next steps. Click the link below. Learn about partnering up and we'll get
your hands on sick deals like this. Take care, see you tomorrow.