Hey welcome back to the podcast today we're talking to andy dan carter about how do you go from five to forty eight to a hundred and two million dollars in sales, but wait there's more. We also want to unpack the mindset of sushi dinners and fancy cars versus buying more rental properties and then, what's the greatest hook, to get your team to be retained forever. Andy welcome to the show man. This is podcast number two.

Yes, two! I think we've done. I mean i was on your show. You've been on my show, that's correct. We've shared the sage a couple times, absolutely um, so andy for the people that don't uh know who you are or follow you um.

We want to talk about. You know zero really, five to forty eight to 102.. We want to talk about switching to an investor mindset. We want to talk about retention, but i think it's important that people have some context for your back story.

Sure so give us like the short version for the person. That's ever never met you before like who is anyone, carter, sure, great question and here's probably like the two-minute version of it. So i was literally raised the poor kid and it's so so important of like how this whole entire thing started. For me, i was raised by a single mom.

We struggled, we didn't have a refrigerator. It was a cooler and i got to see from a very very young age like life can be really difficult yeah, but it doesn't have to be your entire story right. So around 12 years old i started to kind of write my own story i started working. I started hustling and i've got so many stories kind of around that, but i was a worker yeah.

I did not get really good grades in school, severely dyslexic, all kinds of like i probably have like add and like 88 i've got it all yeah. It's a super power when trained. Yes right so for me, i just school was hard. I was always spaced out thinking of stuff, so i wasn't like the greatest student on earth, but i've been working, my butt off since i was about 12.

yeah and i've been in a lot of different industries and i fell into real estate and i was like Wait a minute, but you found a real estate differently. You came in, wasn't it reos or was it just investments yeah? So it was 2008 yeah. This entire market is crashing it's imploding. I was just leaving a really strong career as a wine sommelier, and these people are like.

Why is the wine guy going into real estate right and they're? Like good luck, pal - and i was like that's all - i needed yeah, thank you, but it was straight to flipping. I went from like here's my license and we started flipping houses and then scaling that to these crazy, syndications and buying holds, and then it was kind of off to the races and so many people. I i met um. You know over the last three decades whether they started in like 89, 90 91 92 became some of the best ever the ones that, like really crushed through 2007, eight nine ten were able to pivot and navigate and figure out short sales and reos and maintain relationships With their database and still do the right things um, those are some of the best of the best, but you took a different path.

You you went kind of straight into then oreos, then syndications and then buying units and then writing a book. You know your first hundred doors, which was fabulous, and you owe me a copy for both my children. Yes, i sure did so they get a little more context, but was it was a couple years ago we were talking about this last night at dinner, that you know you're sitting backstage at my summit and literally, like tim smith, cole banker number one agent sitting next To chris voss, the fbi negotiator sitting next to christoph chu from beverly hills sitting next to maxine and marty gellins from la jolla and you're like wait a minute like what what's going on here, maybe maybe i could do some deals in real estate 100. You know you were kind of active right, so that was year you were at like 5 million.

Yes, so you went from 5 to 48 to 102.. Yes, someone listening right now hears that and they're like wait, a minute like okay. So what did he do? So? Let's, let's unpack 5 to 48 48 102., like what were the building, like literally the tactical, as i move away from the microphone yeah building blocks of what you did 100. So with the blocks.

What did you do? First right? So here's the visual, is. It literally started from a thought that i had at your summit yep, and i was like wait a minute. I was just coming off a really really hard year in the space of multi-family syndication and scaling lost millions of dollars on these deals. I couldn't put together still - and i was just like that - was frustrating for me and i was like wait a minute and i literally just went around the table of all the people that you just said.

What do you do? How'd, you do it and i was like how much do you guys make like how does this whole thing work like a seven-year-old, my superpowers, i'm like why how'd you do that? How come how'd you do this? Why? Why daddy? Why? Why? Because i ask a lot of questions and i had the biggest epiphanies, i'm standing all the way in the back from there, and i see how many people are at this like it was an amazing show and rocks, but i'm like all these little teams. I go. I'm gon na make a seal team six right and i'm gon na do it with my skill set like as a brander as a marketer and as a real estate investor, because i love to serve people at the highest level yeah. I could sell some homes yep and i could work with buyers and i could figure it out.

So i literally like just kind of was like okay, okay, so here's the idea, yeah, you got the idea right. The idea i'm gon na build a seal team correct, but i literally asked the best in the game right. How did you do it? Why you modeled a bunch of rock stars correct and what did they tell you to do? What did you hear uh like who was the first hire the second higher the third higher yeah and then what marketing went? First. Second, third, super good question uh.

So the first thing i did was like: okay: where am i gon na operate? So, for me it was a space yeah right, so then, from the space i mean i was getting hit up by all so many people, every team yeah like all these different social media things. Yes, everything and i was like look. You know i'm going to build this thing my way, so the first thing i did is: i got two young like rock stars: sales agents or sales agents, yes and then from there. I learned really really quickly that i've got tons of ideas and i can work.

My butt off and i get everybody fired up, but my operations are absolute dog. I mean i'm the worst. I've got the greatest tc on the planet, she's she's, like she's kind of like my assistant as well, but she has severe ocd right, which is amazing. It's going to be perfect and detail-oriented love, it yeah.

So that's pretty much the team and then we started to slowly kind of stacked those things. So i was really lucky because we actually own a marketing company and it's all digital. So i could like use that as leverage to help the stuff i was kind of already doing so that worked out really well plus i like that piece. I like the branding, i like the marketing it's fun for me and i understand it.

I know how this thing works on google and youtube and instagram like in my show on my podcast. I'm like. I just need to point this thing somewhere yeah and see if it works yeah. I love it and it was a lot harder than i thought, and you warned me you're like listen, but this is.

This is not like this space over here for investing everything, looks good on paper right. What's the the great mike tyson quote, everybody's got to plan to get punched in the face and you got punched in the face a hundred times over and over again. Here's here was block number. Two, though, is i gave myself enough runway to win.

I was like i want to be the best in my little zone. How do i get there? Here's my seven year plan and i'm going to suck the first couple years, because i don't know what i'm doing right. I was talking like tactical, like listing presentation, all your consultation, you know, like you know how to analyze deals and do deals and meet with you know, people that are off market and say this is why you should sell me your property 100, but it's very different When you go into a high-end listing appointment right or an everyday listing, appointment and you're competing against multiple people, yes locals in the marketplace: oh andy's, andy's, more of an investor, he's not really a real estate agent, and that was my achilles heel for like these two Years, it's now starting to turn yeah, but man that was hard because that's how everybody saw me and i'm like no, i have a sign in the front yard of people's houses, but that's a very different skill set than the one that i had. I also love people love to work with people, but it's a different game and there's people that have been doing real estate, 30, 40, 50 years in my zone.

Right and that's just that's what they're known for right, i'm like i come in so it was. It was just a little bit different, so give us some tactical things. You did to switch the brand from andy the investor, to andy the agent correct, so i went all in on my social and print. If you look me up right now, i do not look like a real estate syndicator.

I look like a real estate broker right. Everything i am facing. The public right now is very much like buyer seller yeah as much as you guys can take and i'm doing tons of instagram tons of print here was the problem. As soon as i was all fired up, it's built, i'm going full gas covet, hits yeah and i'm like awesome yeah.

This is gon na scare, so many people we tripled our budget for marketing tripled our print tripled our digital spend. What print were you doing? Give us an example: i was literally doing just listed just sold here's. What i would like to do like postcards postcards like yeah these old school, like foundational pieces, are still incredible plus absolutely i sell not sell, send tons of these letters to investors every single month. Yeah, i was already doing that so i just took that and made a pivot to like here's, a homeowner with tons of equity.

Have you ever thought of x? What's your strategy for this? So, are you saying you're sending postcards that say that are these similar to the investor letters that would be hand addressed hand stamped potentially non-branded? Are we talking more at that both okay? I would do this whole thing and i was trying to hammer them from their phones and from their mailbox. Okay, most people between the ages of let's call it like 50 and 75 to 80. yep. They still open mail right and they're sitting on four hundred thousand five hundred thousand eight hundred thousand the guy you're talking about the long beach guy on the water.

Yes, four million dollars in equity right tons and they don't know what to do with it. They want to invest in more real estate. They need someone to help them with that vehicle. So, are you saying to the person that's listening? They should be doing some data mining to figure out who has the most equity in their property, not just investors, but everyone.

Every human that owns a house, it's an opportunity for you to make one more touch point with them: hey! Here's! Here's! Why you received this letter today? Here's why you received this phone call. You are solidifying yourself again as the local expert you care about them. It's service value value. If you send them a letter, says we're going to borrow for your neighborhood.

Everybody does right thanks doctor, but like what's your strategy, what's your plan yeah and here was a huge piece of the puzzle. I hired a coach. Yes, like i got a really amazing coach through your guys's organization. That really helped me stay organized because for me that's hard for you.

It's it's almost impossible to ask my wife. It's it's just it's not what i'm good at yeah, but it's something that's so easily hired out. Yes and then i just kind of stayed on target and again i jump all over the place. But for me i need it and i love coaching and love mentors.

I've had two amazing ones through your organization love, my coach now uh shout out to jeff mays, but it's like he's got these old school tactics right, that's what i needed to learn. I know i wanted those foundational pillars in the industry and i wanted to get good at them. So, let's go back through your hires, were you started with two sales people, and you got an amazing transaction coordinator who also is kind of an assistant? Yes, um is that the same team at 102 million or was that the 5 to 48 team uh? So that was the 5 to 48 team and then we still only have. I have five sales agents.

We have um, we have a marketing manager and we have like an operations manager and then me and and what's great, is with your average sales price and just to be clear. Like average sales price is a million yeah, two million right, so we're not talking like 20 million dollar houses. You need five of them, no you're doing a lot of transactions, a lot of grinding, really fast, all right, and then you mentioned on the marketing side. You said you know, obviously we're doing a lot of social, so a lot of a lot of it was had to rebrand yourself from andy the real estate investor, because you already have a couple hundred thousand people that follow you on all these social channels.

Yes, and they know you as the syndicator, the fix and flipper and now all of a sudden, all those people are now seeing you as hey andy's out doing an open house right. Handy andy's just walked out of a listing appointment and won the listing, and he just had 15 offers on a property. Yes, do you think that is relevant to the person that's listening today like? Should they be doing the same, and we would call that, like almost case, study marketing right, like not not so much educational but like you want to hire a broker like this? You want to hire an agent who just did you know had 15 offers on their listing. Would you recommend that, for the average person listening today, yes do it all test it for you test it for your market right, there's, so many people that do a really good job behind the computer? Yeah? That's not me! I'm in the streets i'm like out there doing it, but you got ta test it yeah.

I literally thought it was gon na take like three to six months and everybody's gon na know exactly what i do right. It was wrong right. You know i spent hundreds of thousands of dollars trying to admit like and it's, but now it's working yeah. So i had to get out there more and i had to be the person that i was presenting to the market right and that's exactly what i was trying to do and it's fun i like doing open houses.

I was i was so confused. I was like wait. I get to stand here for five hours and talk to people about real estate. Sign me up i'll.

Do this all day, people that are curious, how's the market, what's going on, how much is my homework? What's this going to sell for - and i become a nerd like like there was home this weekend right yeah, and it was this beautiful home that we built i'm talking about all the stuff that we used all these materials. And then it took me to a completely different level with them because they're like oh, you know how these homes are built. You know how, so it's not just like it's so much more than just doing the sales and the volume and here's a record sale right. I am not so i'm not you're, like name tag wearing realtor yeah, and i pride myself on just offering more value than that, and there was a client i just signed yesterday from like over the phone they've been using this amazing agent forever.

That does most of the deals in this zone that i'm trying to break into yeah and i was like this is going to be a hard one to crack right and then they chose me and i asked them. Why did you pick me? I'm just curious and that's literally what they said. You know so much more than the average bear bingo bingo. So what about you also said mail and phone calls.

Yes, so give us give us a sense of uh. Is it you making the phone calls? Is it you and the team making the phone calls? Is it on the team making phone calls and what's the frequency? Who are you calling? What are you saying sure? So it's mostly the team but like i still have my number yeah and it's not as big as it should be yeah, but it's something and so for me, daily victories are really important. Yeah and, like i'm, also a full-time dad. Full-Time husband, like my whole world, is that right.

This is this. Is my side hustle yeah so like the real thing? Is me at home, yeah, so the first year i was like, i need to make all my calls today or i'm a loser and all that stuff yeah and i tested it and for me it was much better for me to call certain people and check in With my phone and keep those relationships going with the plan, the plan was converting mindset of i'm, not just the investor. I'm now like your local expert to sell your property right, so i was checking in with those topics. So how do you manage this? Is somebody someone's going to be asking this question? Okay, so wait a minute, so we're talking, you know, 75 to 100 transactions right with just based on the average sales price and the volume - and you just said you know: family full-time, husband, full-time dad.

You know you - and i have talked about this and had this conversation we had last night at dinner. You know, with the six and eight year old, like your desire to be home, someone's listening right now like going but wait a minute, like my sellers, call me at 8 30 at night. You know my clients are texting me at nine saying i just found a house. Hey andy did my offer get accepted at you know 10 o'clock at night.

How do you manage all that? You can set up your life? The way you want to, but you have to over, communicate with everybody in it yeah it's really important clients, my wife, my kids. There are blocks in my day, good luck, getting hold of me yeah, but i will text you right back. Call you in two hours, yeah here's what i'm doing right now. I love to communicate with people, because that's the kind of service that i want right and i like so you're not going dark on them, but you're like hey.

But then, if your phone's blowing up, then the phone blows up yeah the empire will not crumble. If i don't get to something for an hour or two, it took me a long time to realize that yeah, so many people burn the candle at both ends. Like a sparkler right in this industry, this is the hottest market. I got ta get this client, it's so competitive.

I don't want to lose them. Your clients will so much more respect. You saying hey with my kids right now call you in an hour, you just became a better human to them right and for me, that's like and that's my truth. You know so i like to over communicate that kind of stuff.

At the same time, i fail all the time. That's my wife, like i try, but at the same time it's his conscious effort of like how do i and i'm getting really not good, i'm getting better at delegating a lot of this stuff. Yeah, like here talk to corey he's he's amazing. He knows this neighborhood way better than i do yeah right.

So it's like i'm starting to do that more. It's hard for me like in the beginning, because i'm trying to build right, but it's just it was so fun for me to kind of watch those things. But you have to you have to have your time. Yeah.

It's really important. Yeah yeah! I mean everybody gets that you know we're we're coming out of the you know pandemic right, mass mandates being lifted. All these things happening. That's such a positive and yet um.

We were talking earlier about dr daniel amen and the importance of having someone like that who's. Focusing on mental health, focusing on brain health - and i just i would say to a listener, like maybe it's time for you to check in with the way you're managing your time. Maybe it's time for you to check in with your commitments, right, your ability to say no, your ability to be polite and say not at this time. That's right! That's hard for people it's very hard, especially like we have no idea when this market's going to shift right.

It could be 10 years. It could be in 10 minutes right. So right everybody's got this, but if you have this scarcity mindset, where i'm only going to do business, why it's busy and everything else, there's a small part of me that cannot wait for this market to implode, because i have tools to crush in that market that I haven't been able to deploy in a while right, but this whole thing with like your schedule, you get to set it up the way you want right and your freedom comes from your schedule. I know exactly where the blocks are.

My anxiety goes down when my schedule's full right, because i know i know exactly what i have to do today. Yeah. I do the same thing every morning, yeah monday, through sunday, it doesn't matter what's going on. I do the same thing.

The night before i go to bed i mean that's where all the power comes from yeah, it's um, it's so easy, it's so easy to hear it, and i'm just acknowledging for the person listening right now, like sure we've all been in that state of like flow Right when we are in control of our day we're in control of our time, it's almost like when we're in offense, and i feel like a lot of people today, andy that i'm talking to find themselves in this sort of defensive position like they're they're they're on Their heels, not leaning in ready to strike um. If you were talking to that person right now and they're, like andy everything, you're saying sounds great. We haven't even talked about how to invest yet right right and but but i feel like i'm just i'm on my heels right. How do i go from on my heels to back on offense right with my schedule with my marketing with my prospecting? Is it just a decision? What is it? Yes, you put yourself on your heels, which means you have the power to put yourself on the balls of your toes and punch like mike tyson right.

Our choices we make are so important. Yes, across the board. We have all the power right if my day is shitty. My fault right, if my day is amazing, my fault right.

I get to create that. But here's the thing with like just life life happens: school and kids. This person didn't show up like i get it. Yeah, but when you can hit pause, that's why i start my days the same way as soon as my brain turns on.

Okay, what time of it is three four in the morning yeah, i do a five minute to ten minute max meditation yeah, i'm barely awake, but i'm like praying i'm like i'm just going through my stuff right. Little meditation get super clear on like what i'm actually grateful for a gratitude practice in the morning. Even if it's one thing you say i agree, it changes your energy right and now i'm telling the day, i'm in a good mood, even if i'm not yet. So i i get like these daily uh, you know emails by the way, looking at my niece.

That always makes me smile, but one of these this so they got this daily affirmation you're ready for this. This is what i read first thing this morning. When i got up, i fully surrender to the universe and trust that everything is working out in my favor. All of my manifestations will soon be coming into reality.

I remain centered and at peace in the present moment. I will be strong and continue to have faith i am blessed. I am finally receiving what i've been desiring. It's all forming at this very moment done, and i read that this morning and i'm like yeah right yeah now, every one of us in business is in the middle of the battle in some way shape or form every day right.

But i read that and then i read it to my wife before i left to go pick you up in the morning and i was like baby listen to this because she was like okay, we're. You know we got this going on and that going on and this going on and that going on it's like i don't need any more anxiety baby. I already know right like, but you know we're like we're in this together. I read her this and she's like yeah yeah you're right, i was like i'll.

Send you a copy? That's called read that a couple times today, intimacy so you're doing all of it with that took 28 seconds right right right. I don't care who you are, how busy you are yeah. You got 30 seconds to write something right. Let it sink in and the key is what most people don't do you share it right you become of service.

You you're, like oh, my wife would love this. So now you're connecting in the morning and you're setting your intentions together, because that's how you guys built all this stuff - oh man, just for everybody out there too. If i go to my notes in my phone and you'll appreciate this, the first thing i have saved is the 2022 affirmations yep, and i was like. I was literally saying, like to myself last december, like okay, what am i affirming right now right? It's just it's just that stop and pause like not that i was back on my heels, but i was i was leaning in and doing the work and i think everybody listening can appreciate this.

Sometimes we lean in and we do the work, but we forget why we're actually doing it. What are we actually building like? What does it look like? Am i just working for working or am i working because of something i want with my family right, more experiences, but so just redoing these and going through, and everything from, like, you know, being a better husband to being a better dad to being a better friend. Being physically fit all that's inside there and every day, when i do it, i find myself, like leaning in that's right, right like okay. This is why i'm doing it any other closing thoughts on that, because we got this and i want to talk investing because that's a choice right, you are choosing to do this.

It's never been easier to do like a five-minute meditation right, there's so many apps out there to help you breathe, breathe box, but it's being intentional with your words that you use because they're so powerful. Yes, and if you start the day with, like all you think about, is that stupid email that you didn't send or it's negative negative negative, i guarantee that's how your day will be for sure. 100. 100.

Okay, one somebody's going to ask, though so you're prospecting, the five salespeople prospect, you're doing lots of open houses. You mentioned building a house that meant you were the actual builder of the property. So was that like a fix and flip, or was that a ground up both? So how was it both okay? So it was supposed to be a flip yeah and it turned into more of like literally just stripping the whole thing to the studs and then just rebuilding there's two projects that we have literally from the ground up yeah. But for me, they're risky right now, yeah and i'm super, but it's fun to have a partner right, who's, a seasoned builder, and it's like look.

I don't want to do them myself right. I mean there's a gp with you on this deal. Yes and that's not going to be the only gpa 100 and that's inflation interest rates inventory war. Yes all this does, you know, create a load we're going to get into that in a minute too.

Okay. So, let's, let's go back to investing so how many doors do you own now uh? As of today, 126.? Okay, we sold six buildings and bought four okay, so so you're you've been active in the game of real estate, investing for a long time. Yes and one of the comments you made last night at dinner, which you know i've heard i've heard this in various different ways - and it always resonates with me - is there's a lot of money to be made in residential real estate. So so are you only going to spend it on sushi dinners and hot cars, or are you going to start buying more assets yeah? So so, how do we get the person listening right now who says things like, but prices are so high right? There's no deals to be had in my marketplace right or i don't have the cash right.

All those are valid objections for the person that is sitting there on their heels right. How do we get them to lean in think outside the box? It's really easy to make an excuse right. It's totally different when you've tried 20 different ways to buy this property, and it's just not working then i'll actually listen to your excuses right, but the fact that there's no inventory it's too expensive. I can't afford all that stuff.

I can't even hear i start getting triggered and mad because i just know it's not true right. I literally bought like my first property, with my full commission check, yeah from that deal, yeah and there's there's so many ways to do it. It's painful, but most people that i see that are in this industry would rather look rich on instagram than be wealthy for real right. That's a that's a hashtag long one, but it's a good hashtag! No, it's! I agree and it's frustrating for me to watch and there's some dear friends of mine.

They close a few deals. I'm like they're going on vacation right so the next week. I just see them traveling great but like if you're showing your clients that it shows me that your fun is more important than your business and if that's you, that's fine, i'm not here to judge on that, but it's when you come and complain. I can't afford this.

I can't do this. No that's another choice, right, you're, choosing, sushi dinners and these shiny watches and cars and look all that stuff is awesome. Yeah. My tenants give me all of that exactly exactly and they pay the mortgage and they pay the taxes and expenses so we're again yeah.

If you hadn't figured out. We had dinner last night, so we were chatting about this. I think i think back to so many mentors i have, and i shared with you a story of one of my mentors, his boss, who bought a very large building in la and and my my mentor was saying: hey you overpaid on this deal a ton right And the owner of the company, his boss, said yeah, but in 20 years this is going to be a deal and the guy was 70 when he bought the building right in 20 years and the guy's still alive, and that building has probably gone up. Two and a half times, of course, minimum minimum.

He has a legacy mindset talk about that, it's so different and when i had kids that turned into a whole different thing for me right, i look at those children and i'm like they're not going like to see any kind of how i was raised super important. I didn't have a lot of money. I had to scrape and scratch and figure it out, but i got really good at partnerships. Like the second deal i bought, i put in all the money i had, which was like sixty two thousand dollars.

I got three percent of the deal three yeah i and i spent every penny because i really wanted to see how that kind of deal structure works. What was the deal so it was family or yeah, so it was a like ten unit building that was in wilmington that we still have in the portfolio right that we got for nine. Something. That's now worth two point.

What i mean it's just yeah, it's one of those things and within three years i got all my money back, plus, plus plus, and now i have a strong position within that building for the rest of my children's life right. I think it's important for the person to listen uh, if you haven't, if you haven't, if you didn't listen to the interview, i did with dan blackwell right who literally commercial real estate broker specializes in multi-family right owns. I think he said, like 30 35 doors now right um, but he said as a commercial broker selling multi-family deals. I wasn't in the game until somebody offered me a syndication, that's right and he said i put like 25 grand into the syndication because i still have it today right so so for the person listening right.

Maybe it isn't just you going out and finding that duplex or that four blacks or that aplex and we both know the financing's better on you know two three and four than it is at five: six: seven, eight ten! You know 500 um. Well, the higher you get, it actually gets better. Yes, but if you're looking at those deals, even if you got into uh a situation where you could find the property and then do a syndication, that's one that may be too advanced or just google today who's doing real estate, multi-family syndications in my town, because dan Just said, i just got into a deal 25 grand into ready. I get monthly dividend checks from the rent.

I get a tax break because i'm an owner in this asset plus i get appreciation and then five years later they refi and pull a bunch of cash out and you get a little windfall and your 25 grand has already been returned to you multiple times over And they said you went out and you said: let it ride. That's right. I would love for the person listening just to do that work just to get exposed right cause then maybe they can just tiptoe in and i don't recommend putting all 62 000 of your. Only amount of cash into a deal i agree.

That's. I was in a very different point in my life: yes, yeah yeah. If i pre-kids all that you were married all in right, it was to learn. My goal was to learn yeah and that's.

The same thing is: if you have a, i don't know like a twenty thousand dollar check that you got, but you have got some money. Some say and you've been thinking about it. You don't need to wear all the hats. Syndication is an amazing vehicle for you to place it and then feel what it feels like to be an investor right, but this game, all of my mentors, are in their 70s and 80s they're like just walk right.

When you walk in this business, you win when you run, you get yourself in a pickle, but if you've already done some research and you're already in the space of real estate anyways get in or you use that within your team yeah, let's say everybody on the Team throws in five grand that becomes your down. Now you own a building together and you do your own syndication and if that's not you because you're afraid cool find somebody who does it right right right, right, right, right, right, right, okay, so how do you? So? Let's just say you're talking to somebody right now: it's like well, i know, there's like duplexes and tribal x's and four plexus in my area. How do you find them? How do you find off-market deals? How do you market to them, so you could maybe be the one that can buy it or syndicate it or list it and ride, along with a partner, maybe put your entire six percent five percent commission into the deal. Of course you with me on this, so so just walk us through that.

So how do i find them? How do i market to them? Okay, right and what's working to get those people to respond to you? Here's our entire playbook - and this is probably going to sting a little bit in long beach where i'm at, but i'm like. Here's what we do. I literally said everyone from long beach. California turn this off close your ears, so, like there's tons of letters that we send out right, yeah yeah, that's to the person that maybe owns one.

Maybe they live there as well we're trying to get to that person directly before it's on the market right for the first thing for me to buy yeah, i'm at the tip of the pyramid. So it's for me first then it's for our entire list of investors. If they're not really interested or if the sellers don't like our math around it right, then we take it as a listing. So our worst case scenario right is: it becomes a listing for our team for our residential real estate business and then we use that to do more business and market everything off.

So it's a treed tiered system right. But when you have the control of the deal, you have multiple options with that asset right and you can do a lot of different things. You can push your commission in to make the deal sweeter for them right or you can change it's endless. That's why they're? Like, oh, i just couldn't figure it out thing drives me.

Bananas right, you haven't tried hard enough right right. So it's how you get to these people, but it's it's male. 1. A lot of these older folks they're not on instagram and facebook right, so hand-addressed, hand-stamped non-branded right both we do both okay.

So you do a combination of the two, yes um. So what's the letter say it's super simple. It says not sure if you know this, but it's crazy here in california, it's been the like it's it's super simple to basically hit the highest things ever this stuff is selling, like you know, crazy plus, i can't believe rent control is now statewide in california. What are your strategies around that yeah yeah? What yeah? What do you mean? What do you mean? I can't believe they're trying to like crush the 1031 exchange in washington right, what right people that have owned real estate for long long periods of time, they're.

So out of touch with what's really going on yeah. Well, especially when you look at the numbers like um, 20 million out of 138 million properties are rental properties right and 80 of them, even today, with 9 of the transactions. Last year, the increase of nine percent transactions in the u.s last year was mainly investors, of course, right. The kkr's the world all hr, like all these guys that are just buying they're, crushing as many sfrs they can um, but the 80 that own all these properties.

In most cases are people like you and i, but not not in our shoes or what we do professionally they're, just they're they're, my mom, who owns they got a couple 30. You know single-family properties in palm desert and a couple you know triplexes and then a bunch of commercial real estate. She has a sense of it, but not a pulse of it. That's our target yeah! That's the person that you can actually have a real conversation with that.

I do really well with on the phone right, because we're kind of in the same zone right it's impossible to get to these giant tapes that own hundreds and hundreds they're like screw like it's. It's impossible, but most of the people are these mom and pops right, and a lot of them are trying to trade down they're trying to liquidate to leave california come to dallas or come to tennessee or like we're going to florida or over it. Whatever your plan is so these hooks within these letters are what's your strategy around this. Would you like to hear how we got 28 tenants relocated when you couldn't evict anybody right question mark there's my number yeah yeah, i mean like anything else, it's a numbers game.

If, if three percent respond, four percent respond, five percent respond, but what's the frequency, how how many people - and how often are you marketing to them right? So for that particular asset, it's it's usually about somewhere around 12 000 pieces of mail go out. It's pretty targeted list, but it's once a month right, okay! So when people hear this, it's interesting like when you look at the sort of core methodology of what we believe as a company right for our clients. It's having multiple lead generation, pillars right and non-owner occupied has been a big one for a long time and it's a place where, whether it's the cma a day campaign or a marketing campaign like this or making the phone calls and saying i notice you own multiple Properties, would you like an updated valuation? Has anybody taken the time to tell you that home prices are up 32 percent and last year they were up 29, so you've got a lot of equity sitting in this property you know: do you have the right interest rate? Is this your forever investment property? Have you thought about 10 30? I'm just just having those conversations and what i love about. The investment side is like the the deal that we just bought in dallas.

There was another offer on the deal. My wife sat down with a guy and just talked about like life and real estate and that's right how to take care of your tenants and he accepted our offer over the relationship side. That's right right, which was interesting because so many deals are done like that. But they start out non-emotional, that's right with me right where, like.

If i said to you to you and your wife sell me, your house you're like, but our kids in our backyard and the way we live, it's a very emotional transaction, but in in deals it's numbers first and then kind of relationships like does it make sense. Are you the right person, yada yada, and you could flip that and say it's relationships? Then it's math yeah right, but it's spot on there's so many conversations that we have with these sweet old. Ladies they're literally calling mad at me because they're tired of getting my letters, they want to come off the list because they get so many at this point right and then i just start talking right like i'm just talking to them as a person, and it's so Funny for my team to listen they're like she was so pissed what'd. You do right and i'm like, i was just me yeah and i was just i was cool and she goes all right.

Honey actually leave me on the list. I'm probably not going to sell, but you know - and it's like i change that whole dynamic. But people want to do deals with people that are that are nice right and that have actually some kind of plan for them, and we do a lot of that. Yeah and there's people there are some of these, ladies in their 90s, that are like okay, so they want to do an exchange right and i'm like why and she's like well.

I just want to set this thing up for my grandkids and everything else, because they care they have that legacy mindset. Yeah they've watched what real estate has done for them for decades, and they know it's fun and they can make it better right right right. Okay, so we're clear on zero or really five to forty eight forty, eight two, you know to i mean it's just so: nuts 48 to 102. We talked a little about the mindset and i think it's just it's important for everybody.

Like you've heard me interview multiple people that are all saying the same thing: it's a lot of money to be made, but when the music stops - and it always does - and i don't mean like real estate ends - i just mean you know the the market. You know velocity that we've been in for the last. You know two years and some could argue since 2010 right that eventually that slows down and what are you left with? If you blew all the cash right and you got nothing to show for it like that would be a problem, so everybody's heard the same thing buy one investment property a year right. I've literally said to people.

Take your existing house. Refi, pull the cash out; go, buy another one right, but buy new construction make that your investment property. That's an example. That's right right, like there's so many things, but it's just deciding you have to decide.

Here's what i want your entire crew to hear. I worked my butt off last year i mean worked my butt off to hit that metric worked my face to the bone. Then i sit down with my cpa and he breaks down how much my investment portfolio and real estate made. It was five almost six times what i made doing listings having these horrible emails.

People screaming at me, yeah and i'm just like. Why doesn't everybody in the space of real estate? Have this thing to quote: unquote fall back on right, but for me it's not a fall back. That's the horse pulling everything forward. Do you know how much nicer that is, it's so easy to be kind when you're like right, i don't care like it's different yeah, but it's so fun for me because it wasn't that long ago i didn't like i started to set this up when i was In i was like 32 33 years old and you're old.

Now, i'm 45, i'm a dinosaur yeah exactly, but it just feels good to know that, like this is so real for everybody, yeah and that's the part where i get really frustrated like if you're, making 100 200 300 grand a year in gci and you're not buying Something right, i don't want to hear a peep out of you, a little money into a syndication deal your own deal, something something don't don't put it on someday aisle right like that mystical island way out there someday. When i finally have a when i get enough. No, you just got ta start and you'll find the deal as soon as you decide. A deal will show up always 100.

So let's talk about the last part, which was you know. You had mentioned part of your strategy and, if you really want to retain your people, is to get them, invest with you or have them start doing deals so um just give us like tactics like what have you said to your team, or did they come to You because you're an investor - yes so 90 yeah. They want to learn how to do the principles that are taught within the book: 100 doors right and a lot of them. They've been following me and they're, like okay, yeah, here's some money.

Finally, i have right: what do i do right, but every single real estate team can do this. It doesn't need to be just oh there's ways to basically structure it where yep all these young guns, they bitcoin and crypto and lamborghinis, and all this stuff. It's it's insane, but they still they're thinking about some kind of like placement of capital in their 20s, where most people didn't think about this years ago until you're like much older. So if you show them how to buy a duplex right or show them hey your first year, it's going to be rough, but then you're going to start to make some money you're going to start to save some money, i'm going to show you how to buy 3.5 down you're, going to get your first duplex you're going to live in one of the units, you're going to run out the other one house, hacking house: hacking.

100. I love it. It's my favorite way to get into the game and then you're a landlord and now you're. Sharing that experience with your clients, like oh here's, my duplex that i just bought.

It raises your level of credibility, so you stack these things and you can show them how to do it. Yeah! It's not that difficult. There are 10 million duplex, triplex and fourplexes in this country. You can't find one you're not looking right right, they're everywhere, they're everywhere and when you drive around in dallas you're gon na be like they need more houses here, because i was on my own multi-family.

I was getting so excited because it's this crazy metric, if you can buy a house for 200 grand and rent it out for 2, 000 i'll, take all of them exactly exactly it's just math, it's simple math and it's hedged math, i'm going to give one for For all the team leaders listening or if you're on your team or you're a single agent, it's the same exact thing uh years ago, with a couple of my clients um, they were finding deals right and and here's what would happen like you know when you get Like that, this is an opportunity property right like this is a larger lot, smaller house. This is the killer, neighborhood, but a beat up property, and you know you would enter in the mls 27 offers in two. You know two seconds and it's builders wanting it. It's all those people and you know, family, it's everybody's on it, i'm like.

So what? If you created as a part of your newsletter strategy, your email strategy, your direct mail strategy, the deal of the month campaign? That's great and you literally say we sit together as a team, we scour the mls, we scour the off market transactions and plus our teams out there. You know talking to potential people and once a month we find one smoking deal and we tell you why it's a deal right and then we market it out like crazy right. That campaign got a whole bunch of agents suddenly focusing on finding opportunity properties right. All the things i just mentioned, and more and and all of a sudden guess who started calling them - investors - hmm builders, hey man! How do you know? What's your investor list? Andy right? What else do you got right and all of a sudden now you've got this? Like how many investors do you need? You need, like, i would say, four to 12? Okay, but you don't need a ton, no, and, and what you don't want is the one whale, because that person is going to negotiate your commission down to nothing and right.

So you want a bunch of people, you could say you guys. Are my super vips, i'm going to email, you right, i think andy. This is the right deal for you, but if it ain't it's okay, because i'm gon na turn on send it to katie. Then i'm gon na send it to brian right and i might just send it to everybody all at once, 100 and then guess what bam.

Let you guys bid and by the way we're not bidding on lessening my commission. That's right. We may be raising my commission. 100, that's literally what we do, i'm going to steal that idea.

I love the deal of the month, we're doing that yeah thursday for sure. Yes, i'm going to start this because it's so important to have those things i have this vip list. This was again jeff maze. My coach shout out to jeff he's like have you ever thought about doing like a vip book to sign in for people there at your open house i was like.

Are you talking about and he's like here's an idea yeah? It was working amazingly, let's go yeah 100 right and that's the whole thing. It's like. So what's the vip list, so it's it's hey. We get a lot of stuff, that's not on market.

We get a lot of stuff. That's this this this! So here's what we need from you, yeah name cell phone email, super simple you'll, get an update from us monthly! Here's! What's coming to market here's! What's going on everybody signs up! I love it. I love it. There's there's so many ways to win, and that could be on your website that can be in your link.

Tree of instagram, like join my investor vip list right all day, join my off market list. I only want off market properties, yeah, no problem. People need to think outside of the box and then help their agents kind of do those same things, there's so much. It's endless, yeah, yeah, yeah, all right! So andy, we've covered a lot of ground real, fast man.

This has been super fun, make sure you're following andy on instagram facebook, youtube linkedin d, all the above kind of closing thoughts. For i mean we covered a lot of ground pretty quickly and it's been a super fun interview, um, closing thoughts for the person. That's listening buy real estate. I guarantee that there are people that are listening to the show that have listened to every podcast you ever produced and somewhere they're having a conversation in the back of their minds.

Right now saying i should have bought that property four years ago right, i should have bought that property 20 years ago. What would it be worth now? Here's the thing that i say all the time from stage here's a conversation i've never had with anybody ever yeah. I'm so pumped i sold that property 20 years ago. It doesn't exist.

No, no, but i love the i've refinanced. This now four times right, taking out a bunch of cash, it's been my piggy bank to buy there's two properties that i have. I literally use them as piggy banks, and i just i go - buy more yeah, it's fine yeah, that's that's the message of the day and the thing is for everybody listening. You can do it too.

It's not some mystical thing. I'm not going to know. I'm not right, like you're in the game, you're already doing deals, you're, helping buyers and sellers and you're, probably helping investors. Maybe it's just taking them to lunch and saying hey.

The next might find you a deal, let's partner on it, throw my commission in and just like that, you're in the game. You got 20 of the deal, love it love it. Thank you. So much man make sure you like subscribe share.

Give us some comments. We always want to just you know, continue to serve, provide you more of what it is. You want. Thank you so much for listening to the podcast.

You.