The Everyday Millionaire Show
The Everyday Millionaire Show
Year End Recap with Ryan, Nick, and Chase (Full Podcast)
The boys are ending this year with their final internal episode for 2024! Join Ryan, Nick, and Chase as they recap their goals, achievements, and milestones this year and how they're setting the bar higher in 2025.
Welcome to the Everyday Millionaire Show with Ryan Greenberg and Nick Kalkas. Alright guys, welcome back to another episode of the Everyday Millionaire Show. We're here doing another internal podcast with Chase and Nick our annual year-end review. Nick had to check some last-minute stats on what this year looked like, I guess yeah, exactly so um, we have a couple come in here with misinformation that's true, that's true.
Speaker 1:And then we'd be, uh, like all the news networks, um. So one of the things I guess we'll talk about is, I think last year we had set some goals to like hit some numbers. I missed my revenue goal. This year we wanted to do $10 million in construction. We did miss that by a little bit, but not much. So I think that probably that number for me will stay the same for this year coming and I'll try to hit that this fucking year, but I did not hit it, unfortunately, uh, 2024.
Speaker 2:So well, what about? You say so 10 million, but what about? Are you focusing more on on the gross number or bringing things, tightening things up to get a higher net at the end of the day?
Speaker 1:I think a little bit of both, but the 10 million number was just like in my head, like that's. I wanted to hit eight figures. That's a gross number, right yeah, it's a gross revenue number.
Speaker 1:Um in my head I just wanted to hit that. Like we knew profits were what, like I didn't really care about the profits. Like obviously we care about profits, but like for me that number was just like. I just want to hit it. Now I'm more focused on like can I get to that number and fix some nuts and bolts, I guess, of the business? Um, I did. We did have a lot of growth this year. Um, I think one of the big things is like finding people like chase to put in positions where I can like refocus my energies on things. Um, like not being a real estate agent anymore. Um, not that I'm not a real estate agent, but Chase has taken that over, so I can focus more on construction and that business. But I do think it's important to have a gross revenue number.
Speaker 2:No, I agree. I mean, the more you're gross ultimately, the more you're going to net, hopefully in most cases, hopefully.
Speaker 1:There is obviously some risks, some like risks, you know, and just talking about gross revenue, but we do feel like there is room for efficiency improvements, like just within the company. We have some like management changes going on currently, so I'm actually excited for the next couple of months. We're like stacked with business right now, like with with home remodeling stuff that's good, especially going through the winter.
Speaker 2:That's definitely, yeah, usually this is like your off season yeah take a break.
Speaker 3:You're like. I want to relax and like today.
Speaker 1:I just I had another basement remodel in my neighborhood, um, and it's like christ, it's about to be christmas and he's like I'm ready to get started like right away. I'm like dude, you have a christmas tree up, like you don't want us in here right now, like give me a couple weeks at least. But I'm doing kitchens, bathrooms, like normally right now we would be very dead, and we buy a couple houses we're flipping, um, flipping one right now under contract, another. This is when we typically buy our houses to flip, and then the summertime is usually like the busy time to, you know, build for people, but it has been just off the fucking wall yeah, that's a good problem to have and I know you probably buy those houses around this time just to kind of keep your guys busy.
Speaker 1:But it's good to have that um homeowner client, you know, to keep the guys busy as well yeah, I think most people know, like investor work is typically cheaper, you're not going to get um the same margins but you will get the volume, so that you know you get to supplement kind of um the high margin stuff with the volume stuff. And chase and I were talking the other day and we were just talking about it like our company trip this year for 2025 was, uh, going to be to thailand and like the amount of money that we're spending, our points pay for like so much of that trip and so it's.
Speaker 3:It's actually crazy the more money you make, the more stuff you get for free yeah, yeah, yeah you grow your audience. You get free stuff. You get free products. You know you. You spend more money at home depot.
Speaker 2:You get a percent back I know it's funny because, like, when you're poor it's like you need the money to buy it. When you have money, it's like you get the free stuff. So it's like backwards it is so backwards.
Speaker 1:It is so backwards and I was saying um about the points the other day. Like you know, we're we have to spend money on our credit card to buy materials. We're getting like a half a million points or more because Amex gets one and a half points per. That's why you need to switch back from Southwest Okay.
Speaker 1:That's why you need to switch back from Southwest. Once you get your companion pass, you need to go back to Amex because for any construction materials you get 1.5x points. Dude, I'm accumulating like a half a million points a month. Yeah, that's 1.5 x points, dude, I'm accumulating like a half a million points a month. Yeah, that's insane. Like the first class lay down seat trip to um, thailand, is like 700 000 points. I can literally pay for a first class ticket. It's like eight thousand dollars in one month of just spending and you get it back, and then home depot gives you the two percent rebate yeah, that's nice, so we're getting three and a half percent back.
Speaker 1:You spend a million dollarsate yeah, that's nice. So we're getting 3.5% back. You spend a million dollars. It's $35,000 that they're just giving it to you. And then, of course, you get your Pro Rewards perks, so you're getting all those gift cards that they give you.
Speaker 2:Yeah, so I mean originally when I had the Southwest card it was nice, very nice for the flights. They didn't have hotel you couldn't buy, you couldn't book a hotel with the points, but now you can. So that kind of made me switch to like want to just stay with southwest. But you know, you mentioned earlier that you can convert your amex points to and to like hilton points and like they double um, so that's definitely the amex is go to the only.
Speaker 3:The only other card that I would say is probably closely competitive is like the chase sapphire. But the amex is go to the amex lounge yeah, have you been? Oh yeah, have you been? I've never been.
Speaker 1:No I'll have to go. The problem is we don't have one here at bwi? Um, but they they have them in some of the bigger airports and they're really nice. Um, the problem with amex is that they're they don't accept amex everywhere, which is annoying.
Speaker 2:So, like certain vendors, is it still that way? Because I remember like back in the day, like costco wouldn't accept. They still don't, they don't amex charges the highest uh transaction fee.
Speaker 1:So some vendors are like no, I'm not gonna pay that transaction fee I know that costco doesn't because when we were stocking our office, when people were like a lot of people were working in our office, we would try to go go to Costco and get stuff, but our company card is Amex. I had to pay with my personal card at Costco for you know stuff, because they only accept Visa.
Speaker 3:One of our old sign guys wasn't taking Amex, so I'd have to pay out of my personal Visa. It was so annoying.
Speaker 1:But I will say, if you're doing construction stuff specifically, amex is the way to go because you get 1.5x for every dollar you spend and when you're spending like a lot of money, it just makes sense. Man, like I can switch to Delta Points, I can switch to Hawaiian Airlines, I can switch to Hilton and get two for one. I mean, there's like there's just so many benefits. You get the lounge access and like some people think it's crazy that we pay, like I pay 700 bucks, I think, or something, 650 or something a year for the Amex, but like I feel like I get that plus.
Speaker 3:Dude. It was funny because when I was in the Air Force this this is the only reason I have an Amex when I was in the Air Force, the big hack was you'd get the Amex, the Platinum, to start off. They waive the annual fee, so you get the opening bonus of like 150,000 points. You spend that or whatever. Then you get the additional user, which is another 10,000. And then you rinse and repeat that with the gold card and now you're just stacking points. Then I did it with my flip and I was like dude, I'm the man, like I just accumulate all. But this is like such a small. I like spend a hundred thousand dollars and I'm thinking I'm the man, but I mean you do, you accumulate a lot. And then they run those special offers where you get extra points on these airlines or the hotels and it's still like if you have a business, you're a business owner and you're not utilizing these cards.
Speaker 3:I'll drop my referral links in the chat.
Speaker 2:Yeah, I mean it's you know you got to take advantage of it. You're spending a lot of money. If you have a business, you're buying materials, you're, you know, paying for different costs and you get these points and you can use these points to take flights and book hotels.
Speaker 1:The other thing too. You got to leverage your vendors too. I feel like a lot of people don't leverage their vendors Like I use and abuse my vendors, not in a bad way, but like that I have a value to my cabinet people. I have a value to home depot, like I will. I want to use that relationship as much as possible, like the doctors that get taken out by the medical sales people, like they do the same stuff for for us, like they're gonna take us to their golf foursomes with national lumber and stuff like that, and I I take advantage of every situation. I could get a free meal or like, seriously like I do.
Speaker 2:What are you doing now with home depot? So we both have managed accounts at home depot and the rep was, you know, back in the day it was um matt carney and I think he quit or got fired. And then it was luke waters and he kind of just fell off the planet. I think he quit or got fired. And then it was Luke Waters and he kind of just fell off the planet. I think he quit or got fired also. And now I'm like stuck with nothing, like I don't have a rep now and I try to contact them and they say that they don't have one for the area.
Speaker 1:Yeah, so I have, I got a new. This is a funny story and I don't drop names. So I contacted Jordan's boss, who came to me on a flip that I'm doing for somebody Actually Chase is about to list this property and it was so funny because the rep so it was Jordan, his boss, and then the regional manager from Philly to Norfolk, virginia, like big boss, like he was like in charge of all the pro accounts for from Philly to I think it was Philly to Norfolk or something like that and while we were there, home Depot screwed up a delivery to that address. Like it was literally happening in real time and I was like this is why I took my account to National Lumber, because they've been trying to get me to go all back with Home Depot. But I switched to National Lumber because their deliveries are just better. They have in-house deliveries. Home Depot subs out everything.
Speaker 1:We just were at a flip, our flip yesterday, and Home Depot subbed out their delivery to us. Luckily I was there. They delivered all the wrong doors, so we wanted two panel doors. They delivered six panel doors. I was an idiot and the guy came inside and I just signed for it real quick because I was running around the house and we came outside and I was like these are the wrong doors and the guy tried to refuse to take them back. So I literally did.
Speaker 1:It was was the funniest thing. I had my phone in one hand with my home depot rep on speaker and then that guy gave me his phone with his boss, who's another company that does the deliveries, and I was like this is talk to them. And I put the phones next to each other and they ended up taking it back. But I was like this is why I hate home depot, because of that reason. So this guy um, matt, I can, I can link you up with him. Uh, he's the regional manager. He got me with a good rep. Now I have a good rep um, we'll see how long she lasts. She's been with home depot for a long time, but that's, that's like the the uh part that people don't see, like dealing with these people.
Speaker 2:Yeah, vendors and especially if you order something.
Speaker 3:I saw you. You were so frustrated and he's like yelling with his, his head honcho in the house. He's like I hate these Home Depot refs. He's like cussing.
Speaker 2:He's like and then he tells the lady like.
Speaker 3:I know it's not your fault and then she was like yes, it is, it's their fault and like it's just not a great system.
Speaker 1:Yeah, it's, it's, it's not good. The problem is is that and I tell them, I'm like I'm your easiest sale I'm in I'm financially incentivized to use Home Depot because I get my 2%, I get the pro perks. So once we hit that million, you know a million dollars, we've gotten at least $10,000 in gift cards back for the year. We've gotten $20,000 in rebates and cash rebates. I'm incentivized to use you and I'm not using you. And I'm spending more money going to capital building supply for drywall, going to national lumber for wood, because they're just way better at.
Speaker 2:Yeah, and that's one less stress aspect of the business that you don't have to worry about. Yes, you do have to pay a little bit more, but people are willing business owners are willing to pay that extra dollar to get things done right the first time and not have to take an order back, go through that trouble and headache when that's just time wasted out of their day.
Speaker 1:I told her the other day, I think. I was on the phone at the house and I was like you have to pitch this to Home Depot. I said I know myself and two other people that would spend that, spend $3 million a year. Hire us two guys and a box truck for three accounts and that person is just running from job to job. Those two people are just running from Home Depot to job site, home Depot to job site for all of us at the same time. Three million dollars in revenue can't support two guys in a truck. No way they're just I don't know, I don't. I don't want to say they're lazy, but they're like testing out their own drivers in atlanta, apparently right now, to see if that works. But I'm like it's not working this way. Yeah, why can't?
Speaker 3:you start an independent contracting moving company and just have home depot do that it's just, it's another, it's another idea.
Speaker 1:Let's say no, no, I mean, I just I think that there are um limitations to those big, um big box stores versus small mom and pop shops. That's why I keep current cabinetry. Shout out to them. They always sponsor our events, they sponsor anything we ever throw at them. They nobody can beat them for cabinets because they they have them on stock. Do you use them? Yeah, yeah, I mean, they're there, they're in the warehouse. Other companies, like I don't want to say bad things about, but like other companies that I've used, they're two weeks out. And then, if one cabinet comes wrong, you're like, oh, I gotta reorder, and now I can't get my countertops for two weeks because the stupid base cabinet's not in stock.
Speaker 1:That holds up a lot of things like no way, I'm gonna just stick with my, my people that that's what they do. They just do cabinets. You know, they're really really good at it, um, so yeah, so I guess the next, uh, next, thing I wanted to talk about was this hilarious video that I can't believe you didn't see that we are now transitioned to vibe um, who was on the podcast recently, before that episode. We did that's when we started negotiations with them, um, here at my house and things you know came together and, um, we moved the team over there. It feels really good just having some like, some support, some back office support. Instead of building from the ground, we, like I feel like we're building from the foundation yeah, yeah, they.
Speaker 3:I mean they already have a lot, so it's it's allowing us to focus on the money making activities and like building the agents that are under us right now. So it does feel really good.
Speaker 1:So that's one big thing that I think this year is going to be nice to let Chase kind of spearhead that venture of just getting other agents on board that will drive revenue to the other businesses to obviously to his own pocket, but also just like the recognition of being with a group of 100 and something agents that now all know that we're there and the off the stuff that we do like. Probably different than some other people like, we're investor based, we're very heavy on, you know, flips and acquiring properties where some of these agents might have deals, they might have leads they might not know who to get rid of a house to. That's shitty, you know.
Speaker 3:Yeah, I know a lot of the Vibe agents actually are on at Vibe because of their services that Vibe provides, but they're mainly just there to wholesale and they just got their license because they were scared of the the sanctions that were maybe coming in Maryland, yeah, so I think there's a lot of opportunity.
Speaker 2:That's good that they did that, because you never knew I guess we still don't know, or I guess it's not happening, but potentially them not being able to wholesale, so it was good for them to get their license for those, I think. I think that eventually is coming.
Speaker 1:I think it's just hard to put like. I think it's just hard to put like real laws on it. Like we're going through this short sale process right now and it's like a really weird clunky process and if you were just able to assign it it would be a lot easier. Um, but there I think there is regulation. I think it's just hard to regulate.
Speaker 3:That's I, I, I don't really know I don't think it matters what they do to regulate it. Like there's I mean we've talked about it before like you can sell the loc, like there's ways around all of these restrictions, but, um, at the end of the day, like that's. That's why I love what we're kind of still building here is like we're investor focused, like all of our agents are investor friendly, like we're doing the wholesale innovations, like everything. So we're kind of touching all of that pie and being able to teach these kids how to do it.
Speaker 1:I think it's really hard right now for and I was just with TJ Kane the other day we were talking about, you know, just that life like the retail realtor life and it's just so saturated and it's so tough. Like you get your SOI deals, like your sphere, you know your friends and family, whatever that's cool. But like to really make a living, you need to be selling a lot of houses to retail people and that's a grind, Like that's a serious grind.
Speaker 2:It's like all the time you have to be selling.
Speaker 1:Yeah, all throughout the year through the slow season, like our slow season's not slow because invest investors are buying in the winter, like that's. That's what we do, that's when I buy houses. So I I think it's just also like most agents are terrible. We found that out recently a couple of times with working with buyers agents um, god, dude, they're so bad, like the one house that we're selling they their clients got. So I don't want to say the address or anything just yet because it hasn't closed. It's funny a cabinet supplier just called me um about sponsoring our event I have to tell them no, because current will be there.
Speaker 1:But they screwed their clients over so badly that they ended up losing a point.
Speaker 3:So let me, let me just backtrack a little bit. To backtrack we got under contract with this. This agent Communication was great right up front.
Speaker 3:You know, of course it is. When you get an offer they want to know if it's been accepted. Then it gets accepted. Then they're so excited and then they just disappeared and like we would talk. And then I was like, hey, where's the EMD? It's been like four or five days. Oh, the client had their EMD withheld on another property red flag, all right, well, you didn't tell me that when you put the offer in. So now it's been seven days and there's no EMD yet.
Speaker 3:And now we're getting to the end of the inspection contingency. I haven't gotten that either, but they've had the inspection. So the clients have walked the house with the inspector, seen all the problems and I'm sure wanted Brian to fix some things. Or you know, typically FHA might have requirements too. Nothing, no inspection report. So she missed her inspection contingency period, missed her EMD period. And then Ryan's like, hey, I'm, I'm ready to go back to the market. So I text her. I'm like, hey, we're going back to the market and all of a sudden she is the most responsive agent in all of Maryland.
Speaker 1:Well, first she gets snippy, like she gets snippy, and I'm sitting there listening in and I'm like I just want to jump through the phone at this lady and of course I'm letting Chase represent me, it's whatever but she's getting snippy at him and I'm like, dude, you're people, you are responsible for their actions. Like they're, they're done. Like they have a drop dead date where they the contract is null and void so we can go back to market. We went this. It gets even better, though. So she starts responding and getting snippy. We basically just say, hey, we don't have a deposit.
Speaker 3:In like an hour we're going back to market the best is, she texts me right after I say that and she says well, does your seller even want to sell?
Speaker 1:And I'm just thinking the whole time what are you talking about? I've been holding this mortgage. Now the house is vacant. I'm paying a mortgage Like of course I want to sell, Like, what are you asking?
Speaker 3:We're on market. We accepted a contract. We're performing on our side. I'm begging you to perform on your side and you're still not performing so she still doesn't do anything at this point.
Speaker 1:The lender calls chase.
Speaker 3:The lender they were eating chick-fil-a. The lender calls me and is like hey, like I know this has been a long day, but like, what can I do to salvage this? And I look at ryan. I'm like you want to do something, because at this point it's just like we don't even want to deal with these people anymore.
Speaker 1:So their seller concessions were 5.5%. I said 4% and EMD. In an hour and they got it done.
Speaker 3:So I basically got it, done man.
Speaker 1:I got an extra point and a half on a $350 house, which is a lot of money thousands of dollars, right? What's more sad is that those people got screwed out of thousands of dollars because of their agent being bad.
Speaker 3:And there's no way she's getting paid in this deal, because they needed the concessions to make this, this closing, happen, because they need to cash the close. And then the lenders the lenders, the one that's basically representing them the agent's not getting paid. They lost that on like thousands of dollars and it's just it's it is. It's sad, you know when, when. That's the type of agents you have representing um these first-time home buyers yeah, no, that's, and it is unfortunate.
Speaker 2:I've had that happen a couple times on a few houses that I've sold, where it's a new agent and you can see that they've only sold maybe one or two deals and they don't do. They do the inspection but then they don't even send in, um, you know, an inspection dude.
Speaker 1:The inspection that this girl sent was literally a document list of just things nothing. There was no like. You know how it's supposed to link to inspection 1.1? There's a 100-page inspection report and then just a Word document with a list of things to fix. I'm like I refuse to look at this without it being okay. Every agent and their mother knows inspection.
Speaker 2:Like how to find it in the inspection report?
Speaker 1:Yeah, like you put section 2.1.1 roof. Okay, I'll fix the roof. Then I can look at the inspection. I can look at the list. It makes sense. This lady just freaking put a list of things, like she wrote a novel and wanted me to like read her novel and then go through the 100 page inspection report and just pick through it.
Speaker 1:I'm like you are insane. So I was nice and we are finishing up some. There were a couple of structural things with the basement stairs and a couple of random stupid things. I was nice and did it and it cost me a couple grand to fix it, just because I knew it was the right thing to do. But really I didn't have to do anything.
Speaker 3:Yeah, once you got the EMD and that's happened, like you said, after you get that EMD and you know they have that inspection contingency and they miss it, I mean you don't have to do anything and that's unfortunate for the buyer. Man like you're really getting screwed in that situation.
Speaker 1:That's the problem when you're cheaping out on an agent or you're using somebody that really doesn't have experience because, but at the same, time.
Speaker 2:They don't know either. The buyer doesn't know, Right. So the buyer doesn't know what to experience. Because if they're a first time home buyer, they certainly don't know what to experience. They've never dealt with it before.
Speaker 1:I think that's why you have to interview your agent, right, like, and I think there's just, it's a dime, a dozen. And if you're not interviewing three or four people and you're just going with your aunt or your uncle or whatever, because they're a realtor, you you're going to it's.
Speaker 2:it could be a very costly mistake, but it's tough. I know it's gotta be tough for people who have a family member to shop them around. It's going to be hard for them to be like hey aunt, I you know, I know that you're a licensed realtor, but I want to go see if I can find someone better than you.
Speaker 1:This is the biggest. But this is like for most people, right, like we do this for a living. Most people, this is the biggest thing, the biggest transaction of their entire life. Sometimes it's one and only sometimes.
Speaker 1:it's their one and only biggest by far transaction, yeah, that they've ever done right could literally cost them thousands of dollars these people, they, they didn't have any money to begin with and because their agent was poor like bad at their job, they lost a point and a half just off the off the rip. And I don't feel bad at all because I had to sit off market, right, and in my head I'm not only am I sitting off market, but if we come back to market there's red flags everywhere. Right, why we have to put in the description buyer didn't perform. But people have to read that.
Speaker 2:Yeah, that's a negative for to you, that's a negative.
Speaker 1:First I just paid my mortgage. There's like 2,400 bucks a month. I paid for two weeks of mortgage and 2,400 bucks a month, I paid for two weeks of mortgage. And then I have to come back to this market where people are going to say, oh, there must be an inspection thing or there must be something wrong with it or something, and that just you know. I was in a kind of a lose situation. So I was like either I'm going to make more money here or we're going back to market. That's what it is. So shop your agents, interview your agents and ask them how many deals have you done? Like, if this is your first deal, I would just suggest don't do it. And then, if they're investors, if you're an investor, how many houses have you bought for yourself? How many flips have you done? Because I don't want you to be my realtor if you haven't got experience of your own.
Speaker 2:Yeah, and I guess the most important part here is, like, the buyers want to choose who they're going to choose. So any buyers out there listening, just make sure that when you do get that inspection done, well, first and foremost, make sure you get an inspection done. That is something that has to come out of your pocket. Hire an inspector. You're going to want that inspection done, get it done and then you have typically a seven to 10 day period, whatever it's. However, it's outlined in your in your contract to get that inspection done, to send a list of items to the listing agent so that they can give it to the seller, so that you can determine which items you want them to fix and they can choose on whether or not they're going to fix items or not.
Speaker 1:Really, really important that. That's super important. So, off the agent thing we're at, vibe Kinser Group is taking over the sales department. If you're looking for a home as an agent and looking for some guidance, both in the realm of like, I think I'm going to start trying to do some construction management education for agents. I think that's a thing that most agents don't know about. When they go to a kitchen seeing how much you think it's going to cost, somebody might say it's $5,000. Some people might say it's $50,000. I want to do some more education in that sense. Chase is taking on new agents under him that are investors or want to be investors and kind of to learn collaboratively from from the group and nick is taking any new deals.
Speaker 2:If you guys have any good deals out there, send them my way yeah, well, we're all buying good deals.
Speaker 1:speaking of good deals, I chase and I just locked up a deal here in my neighborhood and this I want to just touch on this because I think it's important for like relationships in general. So there's this deal that came up for sale on the Maryland Investor Network and I knew where it was. It's literally like right there outside, like outside my neighbor, it's like so close that I knew exactly where it was. I knew that I wanted it. Yeah, like it's right there. So Acre Lot, smyr, savannah park schools, like it's a very nice deal.
Speaker 1:there were people on the group on the comments bidding on it big investors that we know that all were wanting this house. I called so many people. I called personally and I was like, hey, this is in my neighborhood, can I please have this one? We're just bidding against each other right now. We're gonna either bid it up and somebody's gonna pay more and get screwed. I'm gonna pay for this deal, can I please have it? I made that call to three or four people that I knew were real players that were gonna buy that house.
Speaker 2:I know I even saw you comment on the Facebook post and said, hey, let me get this deal Like this is in my neighborhood.
Speaker 1:So I called in chits to a bunch of people title attorneys, agents. I don't even want to tell you the favors that I owe but, like, people now have all backed down and I got the contract, but that's only because, like one of the guys we play pickleball with every week, he was gonna buy that house. But I was like, hey, can I? You know, you've done so many deals, this is my hood. Can I just do this? Can I have this one? Yes, and Dave Shannon, I'll call him out. I called, called him and his girlfriend, melissa, and I was like, hey, guys, I stay with you in the wintertime in Florida. I take you on my boat. Can you please back off of this deal so we don't bid each other up? And they all backed down and those relationships go a long way because that deal could have easily gotten bid up and they had offers higher than ours and we got the deal because of the relationships. So I definitely wanted to touch.
Speaker 3:Yeah, that definitely opened my eyes when Ryan came to me and was like, hey, dude, we're going to get this deal, but it's because I pulled a lot of IOUs. Yeah, I did.
Speaker 1:I pulled a lot of chits. I'm doing renovation things, fixing things for people, helping people with their certain things, like there were so many things that I did, but they knew that I was going to come through in the end to do it. And now the person who's selling it, they said like next, you know, if this one goes smooth, we'll contact you first on the next one.
Speaker 3:So there's two things right here that I kind of want to touch on. The first one was relationships. But the second one is a seasoned investor like you and someone that owns a contracting company. You got creative with how you offered other services outside of just money to these wholesalers to be able to get this deal done. And just a newbie investor probably wouldn't think like that. But there are so many different creative ways that you can get a deal done and offer other services Like some. Like one time I, on a wholesale deal that I did, I wasn't getting my whole um assignment fee that I wanted, so I offered hey. I was like hey, um, you know the investor wanted to pay 20, you know a 20 K assignment fee and I wanted 25. And I was like, listen, dude, I will do the 20 K assignment fee, um, but you're going to pay me 5k on the backend to list it. And so, like we got creative and made the numbers work. But like sometimes that's what you have to do.
Speaker 2:Um, are you focusing now just on more, uh, real estate sales and also still the wholesaling, or what is your main focus right now?
Speaker 3:Yeah, so, like right now, our main focus is first getting the systems and the processes in place to kind of streamline from the wholesale company to the real estate team. So we're honing in on our leads, making sure that those are quality leads and trying to produce more leads too. Those are quality leads, and trying to produce more leads too. Right, so the ultimate goal is to create this funnel where the wholesale company is at the top and it can feed the real estate team, and then it can feed our investors and it can also feed our personal flips and whatever else we want to do.
Speaker 2:Yeah, I think that's good to have the wholesaling and the real estate team, because you can basically cater to any seller, whereas a lot of times well I guess sometimes when a wholesaler is going after a seller, maybe they can only offer them that one service of wholesaling their house, but maybe not all sellers want to obviously do it that way, so they don't have that backup option as to taking it to market, letting the seller know that they can list it on the market and get you know whatever offers come in that way and to get the most exposure.
Speaker 3:Yeah, I mean, that's that's what our team is based around, right, it's like delivering the most efficient and um, tailoring different solutions to these sellers, right, cause there's so many out there. And uh, it's funny that you kind of mentioned this, because we sold this house over here in Piping Rock. It was a $900,000 house and when I first called that lead he was like, oh, you're just trying to steal my house. And I said, randy, you don't know what I'm trying to do. I was like I haven't told you what I'm trying to do yet and I said you know, what I'm trying to do is understand your problem.
Speaker 3:And then he kind of opened up from there and then I was like, listen, we have this slew of options here. We could list your house. We have this equity protection program. We can pay for your house in cash. We can come in and do some work with you and JV on the deal, because my business partner is a contractor, so we get contracting at cost streams and different avenues that our agents can go down now when they have someone like Ryan who is a partner of the Kintu Group and is able to benefit off of the construction piece of it and help the seller in that way. So I mean, that's kind of what we're focused on right now is like how we can efficiently weave those companies together.
Speaker 2:Yeah, I mean they go hand in hand essentially, so it's definitely good to have both of those, yeah.
Speaker 1:Yeah, I think this wholesaling thing has opened my eyes a little bit too, because I got on some calls the other day and just working that muscle, that sales muscle, and how to solve problems for people. It's hard, it's not easy to talk to people and get them to solve problems for people. It's hard, it's not easy to to talk to people and get them to open up. And that's been um a fun new learning thing because I've never had done wholesaling right like I've done everything but and usually people I guess a lot of people start with wholesaling yeah, that's what we always hear too.
Speaker 2:It's like you want to start in real estate and start with wholesaling, but, like you said, you and I haven't.
Speaker 3:That's the lowest barrier of cost to get into. So, like wholesaling, you can effectively, you know, go scan the, the zillows and the red fins of the world and find deals that have been sitting for 60 days plus, and call the the agents and do it that way yeah.
Speaker 2:So, ryan, tell, tell us about why you're not. You mentioned earlier that you're not doing DSCR loans anymore. Dscr loans, so they were built for people that want to buy these gray hairs in their head to not have to go through a full doc loan and submitting all these documents and get asked a million questions on why you deposited a certain amount of money into your bank account right.
Speaker 1:So once you have hit a point where your books are clean, you're showing money, you have income and you have somebody that handles counting your money properly, it's much easier to go to the bank and ask for money. I found that out today. I met with Merrill Lynch and got a big line of credit that will be able to fund an entire house or more at a time, and then I can refinance into my small bank. Who sees how much money we're making and how much money we have based on our tax returns, and they don't charge points. There's no fees. How?
Speaker 2:many a year.
Speaker 1:So they do 25-year amortizations Over a five-year calls. Instead of 30. But their fees are typically, like the rate's, going, to be at least a point less Usually a point or more A five-year call, listen, listen, so listen.
Speaker 1:I've thought this through. I want to help you think it through more. So some of them have 10-year adjustable rates. Some of them have five years. Five years you get a more favorable rate. But when it does adjust it can only go up by one point, so it's a 5-1, meaning like every five years you can adjust it. What's really cool is that it's adjustable on the fly so you don't have to refinance to adjust.
Speaker 1:So if it goes down, like in this situation, I don't see our rates especially with this change in administration. I don't see our rates going up that much higher, right? So over the next five years, if I, for example, our Benfield property, we have a 5-4-3-2-1 prepayment penalty. That's a five-year 5% fee. Let's say the rates dropped through the floor today and it went back down to three, that would change our mortgage significantly and change our cashflow significantly. But we'd have to pay five percent of the loan. That would be thirty something thousand dollars in fees where the bank doesn't have any of those fees. So if you're making money, you're actually making money, show the bank that you're making money and they will give you loans so I mean, I didn't know that it would only go up a percent.
Speaker 2:And it is a good time now with the higher interest rates, but I would say back in 2021, when we had those you know four percent on dscr loans, that probably wouldn't have been a good time because then it could only basically go up from there in five years when you have to refinance. But at the same time, if, if, if it only goes up by a percent, regardless of how high the interest rates go, that's pretty good, yeah and I think the other thing too.
Speaker 1:Man is like when you're, when you're actually showing the right amount of income, the, the banks are very, very easy to work with when you have everything in line, like I. I don't want to sit here and say that, like I have always had perfect books, because I think I've admitted many times that that was one of our biggest issues was like the books and I tell Chase this all the time.
Speaker 1:I'm like we have to, like I spend so much money on bookkeeping, consulting, tax accounting, because I went through the woes of like there was one year I think I probably mentioned on the podcast that there was like over, well over a million dollars in income and then well over a million dollars in expenses. That was like unaccounted for. That we didn't know where it was coming from or where it was going to, and it took bookkeepers, people that had to pay hours and hours and hours to find and sift through these things and then realize something was categorized in QuickBooks wrong and it was really something that was an expense or a liability that was put as an income and vice versa. I don't even know what the hell it was, but I spent an exorbitant amount of money cleaning it up. Because what happened to me a couple years ago?
Speaker 1:This was probably right during COVID, when we really blew up beginning of COVID, when things started going like crazy, crazy, my accountant tried to fire me. He was like you're a liability to me, like you're, basically, your books are so fucked up that it's going to cause me to get audited. So I was like, okay, we had to make a change. So we hired. He's like I will only work with you if you hire a full-time bookkeeper, not a bookkeeper that works for other businesses Like these. This person needs to be in your books every single day, counting every single penny. And that's what we. That's what we did.
Speaker 1:We hired her and then we hired a consultant that reconciles her. So there's levels. So there can't be somebody. That somebody because, like my bookkeeper, can technically take everything from me today, like she's got control of all the money, so we have somebody that watches over her and then the cpa has like ultimate, you know, he's got the ultimate say in the last word, basically, so, unless all three of those people that are different entities colluded with each other, my book should be straight because I have I actually have four people because I have APM that does the accounting and reconciliation for Appfolio, specifically their accounting business.
Speaker 1:Then I have our full-time bookkeeper, karen, and then I have Cindy, who's the consultant, and then I have Brian, the cpa. So there's literally four people that I pay to count the money. But now that it's good, it opens up a lot of doors, like a lot of doors where I'm gonna have lines of credit I'm gonna be able to go, not do these non-dscr loans like I'm just thinking about this benfield one. If we had held off and I was able to go with our bank, we'd be probably making an an extra four or 500 bucks a month in cashflow.
Speaker 2:Yeah, it's a whole, nother rental property.
Speaker 1:It's a whole nother rental property right and and I wouldn't have a five year prepayment, which right now we're stuck with this loan for five years. Luckily that deal. Glad we didn't take your advice.
Speaker 2:Are you sure you're glad that you didn't take my advice?
Speaker 1:I'm absolutely sure, because I also still have a tax problem, like I still have too much income. We're trying to figure that out right now and starting a 401k well, that's a different strategy.
Speaker 2:When we were first discussing it, we weren't really discussing strategies.
Speaker 1:No, no, no, but I'm saying like had I sold that, we would have had four hundred thousand dollars in realized gains. The the government would have had $400,000 in realized gains. The government would have came for 35% of that. So instead we took $150,000 cash out tax-free in our refi. We own the asset. It's about to be like we're not cash flowing right now. We're cash flowing negative for another until March the one unit and then April the other unit. The leases go and I've already let them know that the rents are going up. They're both staying as of now. They want me to send a new lease so we'll be cash flow positive starting april 1st and let's have a stabilized.
Speaker 3:I mean we have a stabilized asset in one of the best communities oh, dude, we drove past another day and they had the leaves all done up and you didn't have to call Nick to do them, so it was great.
Speaker 1:Like they were, yeah, like literally outside, like raking their own leaves and like it's just. It's such a night I am I tell people this all the time Like if you need to get into the barrier of entry, go the low end route. If you want to go the section eight route, I think that's, you know, a way to get into the game. But after you've been in it, I well prefer the high end, lower what you think is lower margin, but it's really not. Because they don't miss payments, they don't turn over. When they do, you can move somebody in right away because they didn't destroy your entire house. So what you think is like you're getting these six hundred thousand dollar a month cash flows on these section a properties. Every time you turn it over it costs you five grand. I don't care who you are. So I'm in the mindset where I like having these higher end assets that are long-term legacy assets that will pay the bills. They're always going to pay the bills. The communities are strong. They're getting stronger, not weaker. That's just my personal philosophy on the whole rental game. Right now, After managing hundreds of houses, owning houses, I think I'm a high-end guy.
Speaker 1:Now that's it. Management, for example. Dude, this is what I told somebody the other day. I just recently pulled off of the Maryland Investor Network Preferred Vendors for Property Management and because all of those leads are all lower-end leads, they all come with problems. I just got a house under contract here in the neighborhood for management, rented in a couple of weeks $4,000 a month. The guy's an FBI agent, so I made my $4,000, and I placed them myself. Made $4,000. Placement he's an FBI agent, signed a two-year lease. 8% of $4,000 is whatever, a two-year lease. Eight percent of four thousand is whatever. But it would take literally four section eight or four lower end houses to make to meet that one. As far as income goes like why would I focus on something that's fifteen hundred dollars a month when I can focus on? Instead of having ten of these, I can have two of these and it's the same net. So my whole. I think I also just have like been interested.
Speaker 1:I'm so jaded I was telling jace's that it was like I'm just so jaded, like I was being not so nice to the, to the lender, not even not so nice, I was just being stern. I was like I literally said if you don't give me these terms, I'm going somewhere else and that's it. Like I hate to sound like such a dick, but like I'm, that's it that's, but it's business.
Speaker 3:You know what I mean and I think people understand.
Speaker 1:It's another day yeah, I think that is um if, if anything. When it comes to money you gotta be business, business minded, and sometimes it takes a little bit of I'm an a county boy too, though, when it like comes to rentals.
Speaker 3:So, like I, I definitely agree, I, I do. I tell ryan, though I do want like one or two in in the city, um, but I'd like to stick to the a county if I can yeah, I'm just not familiar with these different areas, other than you know where I grew up in baltimore county and then baltimore city, because it's right there.
Speaker 2:Yeah, for you, I mean, it makes and you're.
Speaker 1:you're in a situation, too, where you self-manage everything. You do things for yourself, not for other people. I'm managing like of course, we're buying our own rentals and stuff, but like I'm managing assets for other people, that becomes a whole. Nother headache like your problems are just your. For other people that becomes a whole. Nother headache Like your problems are just your problems. Other people's problems become my problems. So I'm signing up to solve all of their problems. You know what you're signing up for.
Speaker 1:But a lot of times and this is and I'm doing some coaching and my coaching client is using me to do the renovation on his house that I sold I assigned to him, but I said that he should manage it and he was like you know, gonna obviously probably use me for property management, and I was like no, I think every investor should start by managing their own rental, because then you truly know the value of what a property manager does, because you understand it. But if you hired me and you never managed a property before and I was charging you for a service call or charging you for something, you'd be like oh, I feel like I'm getting overcharged for that, when really the property management business literally nets us negative money per year.
Speaker 2:In the grand scheme of things You've mentioned that plenty of times like the only reason you keep that is because it helps feed your construction business, where most of the profit is made. And I mean I I can't see how you still hang on to it, but I know that you say you have to because of you know you got to take care of I think chase can attest that the property management company produces leads.
Speaker 3:Yeah, and that's what I was telling the other day in the truck. I was like dude. This is why I wanted to start, because he was like, oh, another lead for him on the oh, that's from the property management company. And I was like, oh, here we go again.
Speaker 2:Like this is like the third one this month which and and I guess it's it also is good for people that you manage the properties, for if they want to get out of the business, then you're the first one that they would probably right ask if you knew anyone looking.
Speaker 1:That's our next wholesale deal is a client that went through a bad experience with another property manager. They hired us. The house is torn apart and now we're gonna assign it to somebody and those leads are good and the problem is I think that why you say like, why do you hang on to it? I haven't done a true and I think this year is one of the goals is like to really dig into the crm thing and like figure out how to track that properly.
Speaker 1:Like, for example, like I never tracked anything that came from the podcast. Right, like people contact me because they've heard the podcast so I've never tracked, like the kpis on what comes from the podcast. What leads come from property management, because I bet you if I did that from the podcast. What leads come from property management, because I bet you if I did that. Like the podcast costs us money, like we're negative money, we have to pay producer, you know, editor, blah, blah, blah, whatever the money that comes in through sponsorships and stuff basically just covers what we've spent on all this stupid equipment and everything like that. But it has brought me a significant amount of business and has given us a local name that people know and they come to our events and deals happen, but I have never tracked it.
Speaker 1:So I have no idea how much the company. If you look at my P&L on property management it looks like shit, but if you really look at what has come from it it's a lot. So I can't really put a number on it, but I think that's a goal of mine Try to figure out a CRM thing that we can track, and I think part of it will be like in the real estate CRM or the wholesaling CRM that we have is like tagging. This one came from property management, this one came from this place and I think that's going to be really important for me too. So I don't want to jump off a bridge every week owning this property management company.
Speaker 1:Because we went through this year I don't even know if we officially announced it Like we were going to merge with another company, we were going to sell the company to another local company. We did all these different things and then we decided to not, and for a lot of personal reasons I decided to step away. I thought part of the reason that Chase is now the Kinster group is because I really think I need to focus on building relationships, the construction company, the building of things, and that's where we're making all of our money. So I was doing 80% here, 80% there, never 100% at something. So now we have a good system where I feel like Chase can handle the sales, I can handle construction and property management, tyler's handling the commercial construction big stuff that he's doing. So, yeah, it's an exciting time right now. I'm excited for what, um, what we have coming down the pipeline Next. We got um Nick, your, your portfolio. This year you've made some adjustments, I've noticed.
Speaker 2:Yeah, thanks for noticing Um, I have been probably 50, 50 with the rentals or the properties that I've bought this year have been 50 percent holds 50 flips whereas like last year on this podcast.
Speaker 1:You're like I'm holding everything I'm never selling.
Speaker 2:I would say that was at the end of 2022, 2023. I did also do something similar because of the higher interest rates. I I'm like you know if I can just sell this property, and that's what I started to do last year and then more leading into this year doing that as well. Heading towards the end of this year, I've been about 50, 50 on properties and it's it's based on the deal too. I mean, I don't like to hold single family houses as rentals, I prefer townhouses. So if there were a good deal that came across my desk and it was a single family house and the numbers made sense to do it as a flip, I would do that, and that's another reason why I've done a little bit more.
Speaker 2:But the primary reason was the higher interest rates. I couldn't see myself just getting into these. Like you mentioned earlier prepayment penalties on some of these loans at a high rate, five-year prepayment penalty and then, as rates start dropping. I know I checked some numbers a couple of months ago or so or back in November, where one year, in November of 2023, rates were a percent and a half or a percent lower than they were in 2024 to where, like you, could refinance and it made sense. Maybe it was like a percent and a half. It would have made sense to refinance a year later, but then you gotta pay four percent prepayment penalty just to refinance.
Speaker 1:So and then a point and a half origination fee with the dsr lender and all these fees, dude. That's why, when you start to accumulate money and start to show money on your tax returns, that's what's really, really important is you have to, unfortunately. You have to pay to play. You have to pay your taxes. You got to get the IRS what they deserve or not deserve. I shouldn't say that what? They want what they want. Once you do that and you show that track record, the banks want you. They want to give you money.
Speaker 2:Well, they want your money too. They want you like stash your money into their account so they can make money off of you.
Speaker 3:Of course that they're giving you the best deal right, and when you were talking about going to local banks, um, you know for for these loans. Now they do still need dti, right? It's still like a full-on doc right.
Speaker 1:Yeah, yeah, they still check your debt to income ratio. Um, they do take into consideration your rental income as, like, I think it's like a 75% gross rental income counts towards your actual income. As long as you are claiming it properly and have proper profit and loss statements and tax returns, you should qualify for anything you want. That's kind of and credit score. Of course, yeah, credit score is big. I mean that's DSCR credit score. Of course, yeah, credit score is big. I mean that's dscr too. Yeah, it's like credit score. You have to have a good credit score, but if you're making money, there's no reason to do dscr loans. That's in my opinion I think you should be doing just going to the bank and even if they offer a 20 year am and um you and no fees, no, nothing. You really have to do the math, because I think you're going to save a lot of money.
Speaker 2:I prefer. I mean I don't not like, I like the 20 and 25 year, because then you're just paying it off faster If your cashflow is still pretty decent. I mean you're going to cashflow a little bit less if it's not a 30 year, but if it's still good, if it's good in your opinion and good, it's going to pay off faster anyway, right, as long as you don't continue to just like refinance into a new.
Speaker 1:Yeah, I agree, and I think that people the players that I've talked to, the big players that I've talked to are all going local banks, lines of credit, cash management accounts, where I'm putting my money into an account, borrowing against it while it grows, they're investing it. Merrill lynch has it. They, you know, invested in whatever they think is right at that time. They have data that we don't have right and I let them handle that. I borrow my own money and you become your own bank and it's, it's a strategy that it sounds a lot. I I don't want to make it sound like you know, everybody could just go ahead and do this, but once you start establishing these businesses and they're making real money, then you, you need to take those steps because if you just get stuck doing like for you man, you're doing, you're doing a lot of deals like you should be building a relationship with a local bank, not paying these prepayment bills, not paying a point and a half origination fee on all your refinances, that's crazy?
Speaker 2:I think so. I mean, I have a relationship, like my first five ever properties that I refinanced were with the Columbia Bank. Now it's Fulton Bank and I still have a bank relationship with them. It's Fulton Bank and I still have a bank relationship with them. But I think what happened was there was a time where DSCR loans were at least Well, no, no, at the beginning, when I started refinancing stuff, the banks were about 1% cheaper. And then, when everything hit the low like around 2021, 2022, I did notice that they started to equal, equal out to where the banks were basically just about the same as the dscr.
Speaker 1:This is what you have to think about. Okay, how many, how much volume do you think you bought this year in real estate refinanced? How many, how many millions of dollars do you think you refinanced? Okay, so let's just say it was $2 million that you refinanced this year. You paid $30,000 in fees for no reason. That's a lot of money. That's $30,000. You paid $30,000 in fees where the bank would be zero, right, yeah, so that's just my take on it. I could be wrong, I don't think I am, um, but that's just that's. Yeah, I mean, it's math, right, it makes sense. You're paying a point.
Speaker 2:Yeah, yeah but, like you said earlier, your books got to be clean not to say my books aren't clean, but they're not as clean as I'd like them to be and it's certainly a headache. And, like we mentioned earlier, in regards to like paying for um, you know, when we were talking about Home Depot and National Lumber and how you choose to go with National Lumber, even though a little bit more, just because of how good they are with the deliveries, I'm like DSCR because it's just like a breeze in the park, whereas when I do a full dock loan it's like like that's a task and that's another job for me just to tackle. But I understand your point as well.
Speaker 1:So here's my thought right, $30,000 is more than half of what I pay my full-time bookkeeper to make my book straight. That's a salary. That's somebody's salary that could be literally doing your books for you every year. And now you have clean books and you have somebody that's actually there, like I have somebody that literally counts every single dollar in and out of my account.
Speaker 2:Yeah, I still think the ease of it, like when you get a DSR loan. When I get a DSCR loan, it's like sending my information, the appraisal is scheduled within that next one to three days and then it's taken place and then we're refinancing. Within three weeks you go to a bank. It may take 45 days for them to go through.
Speaker 1:That's when things are a mess, though. So if you have an up-to-date this is another thing to do go find a template of a personal financial statement, build it and keep it up to date. So that means having your assets, having your liabilities, having your actual cash on hand, having all your houses, your cash flow, everything in a spreadsheet that stays updated every couple months, and as long as you have that, the banks can move quick, and I proved today that like I literally went on one Zoom meeting with our new bank, with Merrill Lynch.
Speaker 1:I'm still using the local bank and I got a line of credit.
Speaker 2:From what I remember, I had to submit all mortgage statements for all properties when I was doing full doc loans.
Speaker 1:So just to put it in perspective for you, my bookkeeper requires me to send her every single mortgage statement from every single property every single month because she tracks taxes, principal interest, all on my balance sheet in QuickBooks. So when I go to QuickBooks I see a balance sheet of actual money. So when I go to the bank and I'm like, hey, here's my balance sheet, it's got this many dollars in it. That's a real number that's up to date, because my bookkeeper goes into each mortgage statement separates every single month how much more I've paid towards that principal. So every single property online I could just go to my balance sheet and I see my equity. So that's the value of paying somebody. It's expensive, you have to have somebody. You have to have somebody that's good at it.
Speaker 3:Yeah, we just talked about that. I definitely need to hire a bookkeeper and start getting my stuff straightened out, especially with this team, because we talked about the whole money transition. Usually the commission goes to the brokerage and then the brokerage pays out the agent. Well, now, with the team, we talked about, hey, okay, well, the brokerage will get paid out at the table, the team will get paid out and then from there I'm gonna have to pay out the agents. And ryan was like dude, that's gonna be a big pain. You should just let vibe handle it.
Speaker 3:Um, and to a sense I'm probably gonna have, but we still have, like I'm still doing like recruitment percentages, like if you bring on a team member and you get a 2% up to 5K of their production paid by the team. So like, in a way, I'm still going to have to track that somehow and I'm going to yeah, I need a bookkeeper. But I think to your point, like that is a really cool thing to think about with these local banks, but someone like me, I can't do that. I mean making money, but my dti is all screwed up because I've been avoiding tax. You know not avoiding taxes but I've been, you know, not claiming as much, yeah, depreciating and doing all the things. So for someone new dscr is gotta do it.
Speaker 1:Yeah, that's why I try to. I'm not trying to say like poo- for anybody doing DSCR. I'm just trying to open up people's eyes that are doing like that, are doing significant amount of money, that there is another route, there's another alternative. So last thing that I have on my little thing here that we didn't talk about is, like our, our training, that Nick still hasn't joined our triathlons, chase and I are still hacking away at at we have a coach. Um, that's been helping me tremendously.
Speaker 3:Coach Tim is a G dude.
Speaker 1:Yeah, so like we literally have a guy that every week meets with us, I'd redo a different event each week. So this past week was swimming and I had my PR for like a lot, a lot of PRS in the pool. Um, the week before that, we went and we did a running session with him and I chased, chased around a track for an hour. Um and the the training has been super fun. Man, I'd need you to get on our, on our team. I will eventually, I don't think you will.
Speaker 1:No I will, but we had our last race. Have we had a podcast since the last race?
Speaker 3:No, no, not an internal podcast, not an internal.
Speaker 1:So we had a race in Miami. Super cool race, open water swim. They advertise it as alligator free, but when we? Well, no, I didn't see any. But when we got there I was imagining being in like in a cave it was gated like eight foot gates or something. Yeah, no it was an open fucking like lake. So there was definitely like people say like how do you know if there's an alligator in?
Speaker 3:Florida, you just, it's wet.
Speaker 1:So we swam and it was dark in the beginning of the swim. It's like just getting light out and that was really scary.
Speaker 3:Dude, we took a picture beside a sign that said no swimming.
Speaker 1:Yeah.
Speaker 3:There's a sign outside the lake right there where we were entering, and it said no swimming or fishing.
Speaker 1:So that was cool. It was in the Miami Zoo, so we swam in this lake at the zoo and then biked out on the road.
Speaker 3:Which was crazy, Never did that before. And I come around the first turn and all of a sudden I'm on a main street. There's big box trucks flying past me. I'm like dude, what am I doing?
Speaker 3:I'm weaving in and out of traffic yeah, you're literally in traffic, which was that was kind of crazy, um oh, they didn't have it blocked off for the they had certain places blocked off, but in other places you're literally just on the side of like a main road like the lights were blocked off and the cops were waving you on, but you're like weaving in and out of traffic that stopped yeah.
Speaker 1:So that was. That was kind of wild. But so the the swim I didn't do so good. Um, I did really well mentally because the race before I like lost my. I thought I was drowning. Um, I got dragged underwater and I freaked out this race. I purposely went out. I was like I'm going to swim slow, just keep steady pace, I'm going to stay on the outside of the pack, I'm not going to try to do anything crazy. Came out of the water. I was like feeling good, I was happy.
Speaker 1:My wife says I'm three minutes behind this guy. We came into the water basically at the same time. He was just ahead of me. It was a time trial start, so he probably had like 10 second maybe head start. But he put three minutes on me on the swim. So head start, um, but he, he put three minutes on me on the swim. So I was like, okay, I'm gonna get his ass on the bike. We literally 21.9 miles an hour. We both biked the same exact miles per hour, so I didn't put any time on him. Somehow. My wife I think she was just making numbers up she said at the third transition I was two minutes back. Um, so I maybe gained a minute back on him and then I pr'd my 10k run at like seven minute, seven, 14 minute mile pace, which I was like stoked about, and this guy was your other pace was like seven, twenties you normally like seven low sevens.
Speaker 1:He was struggling this race. He low sixes like a minute off. A mile is insane. So I had to pass the crown. Not that I ever had the crown, because he beat me in the other fucking race too, but I felt, as if I had the crown because I'm older.
Speaker 1:But um, we both got fifth in our age group so that was cool. It was a couple hundred people in our division. Um, I got fifth in my age group but I was 20 out of 26 on the swim, so now my focus is getting better on that swim, dude the expo there, like all the vendors super cool.
Speaker 3:Like we tried on some glasses like running and biking, glasses that were like sunglasses, kind of like pit vipers if you will, but they had the speakers right in the ear Like, oh, it was so great and they sounded so good. You got a ton of free gear. All the free gear was super cool. And then after the race dude, the metal was so sick. If you did the international it was like a little zoo cage.
Speaker 1:It almost reminded me of Madagascar, the movie where you like opened it up and you see all the the tigers yeah, zebras and stuff so that's cool and I just like really enjoy like the race culture and like the people that are there and the vibes are always good and like just everybody's like challenging themselves and everybody, like dave shannon did his first race and he was super stoked. Um, jesse flew down from after just having a baby and he did the race and like we had this cool airbnb that was a really like.
Speaker 3:Just that trip in general was super fun, like being there around the guys talking real estate but still able to, you know, go train. We're running in the morning and I'm beating ryan and chess later that night. You know it was a good time, dude, seriously yeah, so anybody that is trying to get involved.
Speaker 1:I know I've talked to some people at the last meetup that we just went to brenton's meetup. Um, we have a run club on wednesdays, pasadena, la fitness, 6 am every wednesday. So if you're local, if you want to drive down and then saturdays we've been doing long runs um the last two weeks and this week we have another one eight to ten miles. Um, this week we had seven people my coaching client, jet, um he came. We had seven people. My coaching client, jet, he came. We had our normal group of guys. Sean's friend Todd came I think it's Todd. So that was really cool that that group is like growing and our gym like Perry just texted me today and asked to join our LA group. So now we have like we literally have a group of like banditos at the gym. Every morning there's like seven or eight people that show up at the gym and we're all working.
Speaker 3:My wife was like it's kind of embarrassing how many people there is working with you guys, because you guys just like go around and take up like three machines at a time.
Speaker 1:But it's cool. So if you're like trying seriously, like trying to mastermind, trying to get like in the game, like I tell people, like I'm literally there, I'm running, I'm, you know, come to, come, run with us and we'll, we'll talk the cool part is like if you're not there, I'm there.
Speaker 3:If, then vice versa, and like the group is always working, it doesn't matter what day of the week it is, like there's somebody there, so like you could always just come through and like, if you're trying to have that accountability partner, that's it and then when you're not there and you're not there on time, there's a group chat.
Speaker 1:You can't be in it because you don't have an iphone, but if you did have an iphone you could be in it and you could be also held accountable and we would make fun of you for missing. And it's, it's really good. It's mostly positive. Some obviously joking around goes on, but like it is something that if I'm like feeling a certain way in the morning, I'm like shit, I have to do this because they're they're gonna talk so much shit. If I miss that, I need to just get there and just get it done. So trying to run 6 am, la fitness, pasadena, saturdays, we do long runs. Contact us, get involved, that's it. We have an event coming up on January 16th CBP, same spot, same stuff. Should be a good one. That's it. That's a wrap, boys. That's a wrap.
Speaker 2:Should we do goals for 2024?, 2025?
Speaker 1:Quickly goals, boys. Right, it's a wrap. Should we do goals for 2024? Oh shit, 2025. God damn quickly goals. I already said mine I'm 10 million in revenue. I'll fix the. I'll figure out kpis on certain leads. That's, that's it. That's I need a. I just I don't want, that's it. I don't over complicate things I'll go real quick.
Speaker 3:um, our wholesaling goal for next year is 200K in assignments. We did 68,000 our first year. It was really only like eight months, so not even a full year. That was five transactions, but that's not including some of the ones that we took down as flips. And then we did 20 transactions retail-wise, whether that's for investors after they flip it or just regular retail, retail-wise, whether that's for investors after they flip it or just regular retail.
Speaker 1:So for that metric, we're looking at like $15 million on the real estate retail side.
Speaker 3:That's a big year for you this year. Yeah, this was a good year 20 transactions is pretty good. It's doubling year over year and actually we doubled every quarter too. So first quarter, second quarter, we doubled. Quarter we doubled. And fourth, fourth quarter was the best quarter.
Speaker 1:And Chase has only really officially been like working with us for a year, like not even a year. Yeah, so huge things are coming this year. Um, we're really going to focus on on that stuff. Chase has taken lead on the sales stuff, so, um, that's, that's that goal and oh and the last.
Speaker 3:The last goal is for the cancer group. Obviously we want to grow that. So we're looking, I'm, I'm looking, to grow to at least 10 agents and really develop these, these killers yeah, nice, all right nick um, so 2024 has been my best year so far.
Speaker 2:2025. I want to, um, not focus on property management. I want to basically have it to where, like, I agree with what you say and I'm kind of similar in that, like I don't want to deal with property management, I just want to handle the construction of my properties, basically, um, I feel like that's what I'm better at doing other than you know, aside from just trying to get onto a device and manage these tenants. It's kind of not something that I want to do and definitely grow the rental portfolio. I want to get to $20 million in real estate owned by the end of next year and I'd like to have an in-ground pool built at my house and definitely get a boat for the boat lift club.
Speaker 1:You already have a boat for the house now uh, so you're gonna keep one boat in ocean city, living very modestly. I see it's funny. You say that, though, because I did toy with the idea, but this this summer basically told me I'm not gonna go to florida enough, because I didn't go to florida at all. But I did toy with the idea of having a boat in florida and a boat up here, but I'm not going to do that because I am humble. I'm humble.
Speaker 3:Until PE Property Management needs a boat for tax credits. Yeah, no, I've already asked our accountant about writing off a boat.
Speaker 1:He said no, but I did recently buy a BMW that I'm taking to the track specifically taking to the track, if you're listening IRS to meet high net worth clients and network with people. Seriously, went to the track once, met a bunch of rich people that were all there driving their race cars, so I bought a race car and taxed right off. So there you go. All right, that's a wrap until next time, thank you.
