Hey everyone me kevin here welcome back to another episode of confronting people about their real estate. We did graham stefan's boss. We did andre now it's orion, pineda and you've got a real estate operation. Can you give me just like a 30 second overview of how many employees you have what it is you guys do and and how many properties you're dealing with every year yeah? So we have really three main real estate businesses um.

This is the fix and flip business, so we've got 60 flips right now here in vegas active, oh, so this means like either they're on the market or you're, renovating them or you're under contract them 60. At a time how many employees you have to deal with because you're not doing that at all? No, no, no, i haven't been to most of them, but oh my gosh wait. We got 60 properties under contract. I haven't seen most of them.

This is amazing. It's the system, yeah. We have a team um. We have about 10 employees in that company, okay um.

I have a brokerage with 150 realtors wow nice and then i just started a fund called pineda capital and we just bought a 334 unit. Was that the atlanta deal? Yes, congratulations! That flows, then yes, good job man, congratulations! So uh! Okay, so you've got these three divisions. Uh we're gon na see today, uh fix and flip here's sort of number one number two we'll see a little bit of where vegas goes in terms of variety uh. But now i want to know of the three that you've got well.

You just started the capital fund. What do you, what do you like? Better flipping or mentoring, and teaching the agents and running a brokerage? Uh? Definitely not the brokerage. Okay yeah! I suspected that you know i'm not a i'm, not even a realtor anymore, because i just dude. I like investing that's my thing.

That's the niche. That's funny is when i got my real estate license. One of the first things i learned is uh. You don't make money selling real estate, you make money buying real estate dude.

So that's amazing. Now it's what's cool, though, is your brokerage? Probably funnels. You deals, though. Oh yeah, we sell everything through the brokerage we acquire deals.

We get all the publicity from the flips. So it works out. Oh that's, amazing. Okay, so tell me: what are we standing in front of here? You said this is different from your flipping business.

This is actually for you personally something you're doing. Okay, tell me about it, so this one actually started as a flip. We found it on the mls agent brought it to us. We bought it for a million bucks and initially i'm like okay, we'll put 200 grand into it.

We'll go, sell it for 1.5. Nice. We're going to make good money, but then you know, like you know: taxes are starting to come up and i'm, like you know. I think i need to start keeping some of these bigger ones, because this is a big flip for us.

Yes, so i was like you know what i'm just going to keep it as a rental and cost segregated yeah get those right we're going to get a ton of write-offs with this perfect and you make content out of it. So you can probably extend some of your write-offs as well yeah, brilliant, absolutely great. So uh of i mean i don't know how much you talk about on your channel, but you personally are you trying to do more flips? Are you trying to do more, buy and hold now do you have buying holds, or what do you prefer so up to before the funds i had about 30 rentals of my own, and then we just bought that big building nice and i think now going forward With you know, youtube and education, and all these other income streams. I can start keeping a lot of the deals, because before my only income stream was fix and flip - oh my gosh, so it was hard to like try and keep them like hey.

I got ta, sell these rolling them yeah, so you're competing with open door, zillow, redfin and all of them. How do you pull the margins? I mean: what's your usual return on a flip? Well, right now, so, historically, the last, whatever five seven years, yeah our average profit, was around twenty thousand dollars and a normal house. You got ta be good because you could have one thing: go wrong: yeah and that 20's gone well. Yeah you'd get some that made 40, some that made zero okay, it averages to 20., but this year with the market, so hot it's been our best year ever we're over 50 000..

Congratulations! But it's not! I don't think it's any improvement in skill yeah! It's just the market is just every time i go to sell. I'm like. Oh, my god and i'll. Tell you about that.

The next house. We see what happened. Oh my gosh. I'm excited to see that okay got it so uh flipping.

What about the clientele out here so, do you get people who live here? Half the year? Are they living year round? I don't know anything about vegas like when i hear vegas, i just think endless land and you can keep building like how do you keep value here so take our good buddy. Graham, for example, we sold him this house that he lives in now. Okay and he's an example of a typical person, who's making great money in cali, they're like. Why am i living here when i don't really have to yes, so he buys a house here in vegas.

Lots of cali people are doing this. When are you moving by the way? I know right, so we can sell you a house, i got a bunch, i can help you out, you have a few realtors, you could refer me to yeah or i'll, sell you one of my own. So you know, i think you get a lot of people moving to vegas for taxes for affordability all that stuff, but i think the locals here too vegas is becoming a lot bigger than just the casino okay. It used to be hey.

Everyone works on the strip yeah, that's not the case anymore. Oh it's! So it's just expanding to basically being this mecca where everybody's coming to yeah, i see okay got it well, i'm excited to see how this house, so this one you're gon na keep, but i you said airbnb as a potential yeah. How are you gon na airbnb out here, dude you'd, be surprised there are people that are like hey, i would rather live out here. I don't want to be on the strip.

Maybe they're gon na do some other stuff in vegas like go to mount charleston or you know we were talking about atving over here. There's a whole bunch of stuff in henderson um. Also, lake mead is really close, so i think you're gon na get a different type yeah for reference, we're about what 25 minutes from the strip and when we got here there were three atvs that quickly drove by, but were larger ones. What do they? I don't know gabe, do you know what these things are called the side by side, yeah side by side large? They were having a great time, yeah uh and the weather's great right.

Now, oh, it's beautiful! It's 75 chilling! This is great. Let's go! Take a look inside this place, let's check it out, uh, okay! So i'm trying to understand if you've got this really successful, flipping business, if you could go back, would you have done the brokerage again? You know, thankfully, for me i'm not super involved in the brokerage. So it doesn't take up much of my time profitable. Oh yeah.

Okay, i mean for us we're just a high volume. Brokerage 100 commission, just 500 transaction fee, 100 bucks a month. Okay, so the brokerage is very profitable because it's just low cost. Oh yeah.

We already have the building for everything else. Do they pay their own eno? And yes, like that? Okay? So so it's really for you, it's just uh, hey! We can mentor you. We can give you some training but you're, getting that monthly, passive income. Essentially, for me, as the owner yeah, my partner who's, the managing broker - yeah he's got a little more headache than me now.

How do you? How do you compete with like the exp, so we're also doing this hundred percent and they get that whole mlm model too yeah. Well, exp is 80 20 up to a certain point: yeah, okay and then but yeah they have mlm and i think exp is great. They actually have approached us. I've talked to the ceo many times and he's like hey dude, it's up to you.

If you want to do it, i'm, like i, i like owning my own company, oh to convert your model basically into yeah, it's ah to fold it in gotcha, okay, but hey profitable. You don't have to worry about it and that's what you started with right was the boat bridge. Yep okay started out as an agent in 2010, and would you say flipping is more profitable? Oh, i was never a good profitable agent. I might have made a hundred thousand like in 12 years, or i wasn't even an agent for 12 years, but my whole career as an agent i sucked, okay, i'm very fair, but but flipping and investing yeah.

That's where i made millions yep good for you. That's awesome, okay, so uh. What do we have here? I mean this. Obviously you guys have ripped everything out of here yeah.

How long do you have this thing? So i think we've had this for two months now and initially we put it on the back burner because we had so many projects and get so busy with other flips to prioritize it yeah. I'm like hey this one's going to take a minute anyway, but we just got started on this. We're demoing it cool thing about this. You can see from there there's a guest house - oh my gosh, and that's why i want to keep it as a rental, because you're talking double income, now yeah, exactly oh, my gosh, yeah tenant, doesn't know.

If you have duke likes our house for the guesthouse, it doesn't matter; no, it does so that's why you get the multiple levels here. Yeah, none of that bothers you. It does, but you know that's one of the things too, where it's like as a rental. Yeah people don't care, it doesn't matter.

No, that's a flip. Yeah people are gon na, be like hey. Can you do something about this funky layout, but i mean there's really not much. You can do it's, it's a pretty funky pass.

So your thing is just a restore it and then rent this thing out. So a million bucks is what you bought it for right. What do you think reynold was 200 200k yeah. You guys just rip everything out we're gon na rip everything out and, as you can see, when we get to the backyard, the guest house, you know we're gon na spend some money out there too work to do up there.

Okay, gotcha. So this front house was maybe 80 of that or something um yeah 80 to 100 just depends what we do. Oh my gosh, okay, uh. Well, then again, it's a million dollar house.

So it's an expensive, neighborhood yeah, we're going to put higher end finishes than we do on our typical entry-level home, like you, wouldn't spend this kind of money on a 400 000 house gotcha. No, no! No! Our average! On, like a 400 000, our house we're usually averaging 30 to 40, 30, 40, okay, yeah, okay, vegas is way cheaper than cali yeah. Okay, you know uh, that's uh, yeah, your median home prices, which you mentioned about 400 000, for you just say: 420., okay, so uh. If this you're going to uh, then rent out, what do you think you can get so you're gon na be into this? For uh, you know 1.2, maybe some holding costs under one three yeah, so the goal would be refinance it at one point: five, hopefully get where's the financing for 1.5 portfolio line of credit or something um, there's multiple portfolio lenders.

We have um, but yeah they'll give 75 to 80 percent ltd, so hopefully they hit these people uh i'll. Give you some info. Thank you um, but so hopefully we won't have any money in the deal. That's the goal, but between the two properties i actually did a youtube video on my channel.

It was like hey. I could flip this. I could make you know six figures sure i could but then you're paying taxes on short-term capital gains right. You make 200 grand you're giving 100 of that away.

Well, and i lose the cost say that i could take on it yeah exactly so. I'm gon na keep it um as an airbnb. This would absolutely kill it. We're talking 20 to 30 grand in gross every month.

Oh my gosh, that's incredible! Yeah! So you've got that um, but there's different regulations. So i'm not sure if they're gon na, let me because you have to be a thousand square feet away from another one. Oh my gosh, i know there's one, that's 900 square feet away from me. Oh so it's a land grab.

No, it really is like. If you get the permit, the house becomes more valuable. Interesting. No, do you have to pull permits for all this that you're doing here now, yeah yeah, yeah, okay, yeah! You try to stay away from that yeah yeah everybody wants to.

Well i mean here's the reality of flipping houses. If you tried to pull a permit on every property, you could not be in the business. No because it would take you a year to do a renovation. Well, yeah and the margin is gone.

The timing is terrible like it just it doesn't happen. No, absolutely not! So um: okay, what about uh when you i'm gon na, try to tell you what i'm saying yeah, let's check it i'll show you the outside! Well, let's go look at the outside yeah uh! Oh, what i wanted to say for purposes of taxes, the cost sake that we keep talking about. If you're going to be into this for 1.2, 1.3 you'll probably be able to cost sag like 400 000 of this right, which for reference, could be like 200 000 of tax savings in your pocket. So if your flipping team is giving you two hundred thousand dollars a profit, now all of a sudden you're not paying taxes on any of this - essentially 400 000 you're not paying taxes on any of that it's another.

Basically, 200 grand in your pocket. Just by holding this and now you're gon na be profitable on your airbnb. Well, you think yeah, it's! I could have made 200 flipping it, but i pay tax or save 200 by keeping it and make passive income grow. My net worth it's kind of a no-brainer.

Well and the more you can control the more you're just going to be on that compound interest. Ride of exactly i mean you get so outside of your fund 30. Rentals yeah is this. This is one of the 30 uh.

Well now we'll have over 30.. Now you have over 30.. How many millions would you say in total? Were you 10 million real estate, 20 million real estate dude? I was actually talking about this the other day i think between. I know for sure.

In flips we have over 20 million out. That's your 60 bucks yeah. We have over 20 million. Do you feel comfortable mentioning you personally uh me personally, almost none of it.

Only probably two mil oh of those clips yeah, oh okay of the rentals that you have like the 30 reps um dude. That's a good question. I honestly don't even know ballpark 10 20, something like that: nah, probably over 10 yeah, okay, so yeah! Even if it's 10 million right, you get one percent appreciation year. That's 100 grand yeah! That's like a salary for for a coder somewhere.

You know three percent appreciation: that's like a good salary for like salesforce. You know you're in cali, so i own eight big, bear rentals and um two more under construction, but with those i bought them in the last three to four years. They've doubled. Oh, my gosh yeah yeah.

So that's why, when we talk about like two or three percent appreciation, it's like well, the last 10 years we've been a little bit more fortunate yeah. Well, if you get the right deal, you know well that too! So are you generally? Your rentals buying them as fixers and then fixing them up yep, because you're not afraid of doing the work. I mean. That's why we're getting a deal there? You go exactly buy below market value.

What do you say to people who say today? Oh, there are no deals to be had out there dude, i mean everyone's getting deals everywhere. It's just like. If you're looking on the mls and zillow, only then yeah you might be like dude. Where are all the deals but connecting with the agents you connect with the agents? The wholesalers go direct to seller, there's a whole bunch of things.

You can do nice, let's go inside yeah in case you want the knowledge that i have in real estate as well. A complete download of my brain for property management, rental renovations, construction, real estate, investing agent sales is available in the programs linked down below check them out, use the coupon code that expires october 29th and check the programs out. You will not be disappointed. They come with private live streams as well.

Take a look at the programs for all the details linked below your most successful direct-to-seller. As you say, cold call door knock postcards. We spend about anywhere from 30 to 60 grand a month on tv commercials, oh whoa, so here in vegas i did one in 2013 here in vegas. People recognize me on tv, more than youtube wow but um.

I would say roi wise though the best is cold. Calling because it's so cheap, you know you buy the data once you have it, you have it and then just rinse and repeat: grant cardone. Let's go next time, make the calls baby. You want 10x.

The money make 10 extra calls yeah yeah yeah. Okay. So i see a lot of like ranch style properties out here as well: yep uh, some horses and everything yeah. This is massive.

I mean you're what on almost an acre here yeah. This is actually more. It keeps going yep. So this is what will make it valuable for somebody wanting to rent they're, getting a totally different type of house than vegas right, like land is in in the normal houses in vegas dude.

Everything is stacked. Yeah! You come out here. If you want to just kind of live like you're outside of vegas, this is incredible yeah. So this is the guesthouse.

What is like a two bedroom yeah? Well, no, actually, right now it was originally used as like a work shed. So it's it's just a empty. So i mean, is it tech like? Can you rent it out? Does it have to be permitted as a guest house? Well, the square footage is already permitted. Okay, we just got to put up some walls there.

You go okay, throwing the plumbing a little bathroom in the kitchen, you're good to go, that's already unlocked and it's open and nobody's moved in yet okay, wow hold for one second, how they're gon na go about creating this yeah, so this is uh! So do you have contractors or handy folks, or how does this work? We hire gcs um once you get to the level of flipping 60 at a time we don't have time to sub every little thing. It's like yo, you handle everything, yeah charge us a premium. Exactly deal with it, and so you have your contractors know exactly what your formula is, what you want to spend money on what you don't want to spend money on yeah, that's good, because most people they get started with their first home, remodel their first contractor they're Spending 20 grand on a bathroom like a dime you're, getting taken for a ride, yes yeah for sure wow. But so that's why you have so much volume.

You could keep these contractors busy. So you have that relationship yeah! Well, we know what things should cost yeah. We have the cheapest pricing on materials. We give them volume, they don't have to go, look for work yeah, so we're definitely getting things way cheaper than everyone.

That's so critical is is when you get into real estate, is uh the more you do it? The more you understand what things should: cost yeah and somebody again bathroom 20 grand you're like yeah no well, and if you take, for example, uh if we just do an entry level flip and we pay a contractor 40 grand. If we did it ourselves, we could probably do it for 30 to 35, but it's just too much headache sure now you're taking all the liability. If there's a mistake, it's on you, the contractor, and now when you go to sell them, you could say it was all done by a licensed contractor right. So the last thing you want to do is get into that because, if you're the licensed contractor, that guarantee goes back to you right.

So one of the cool things about selling real estate, when you flip it is the houses are sold, as is so. It's almost sometimes feels like that guarantee kind of extinguishes someone else. You know and i'm sure you've experienced it. You know in repair requests and after you sell the house, we'll get people sometimes they're like well.

You know this. Is this and i'm like dude? Did you want a brand new hat like this? Is not a brand new? It's not a brand new house like. If you wanted a new house, you could have paid twice as much go, buy new construction, somewhere, yeah and then they're buying, as is yep all right, so uh, okay. So this is what you'll make into the guest house.

Essentially, yeah there's a garage room over here yeah. So what we'll end up doing here is a stand-alone house it'll be a two-bedroom with its own little mini kitchen. It's own living room. It'll have two bathrooms we'll make that one, a bathroom um go flat about or there's already a little bathroom there.

We can extend it, so this house by itself will rent for this is great. That's awesome, okay, and so, let's see the rest of my house. So, let's get to that completed flip yeah. So how do you source this one? So this one was agent relationship.

You found it on the mls in your brokerage. No, this guy was actually outside of my brokerage. So are you afraid of paying someone else? A commission because i hear this crap all the time people are like. Oh well, i'm getting my license, so i can get my own deal and save the three percent or two percent commission yeah.

Well, let me say this actually now that i remember it the agent who found this ended up coming to my brokerage um after so oh now he's in the burger but uh. No, i work with agents who don't work for me. I work for agents or work with agents who do yeah and i don't care. I tell everybody like look.

If you make six percent, i don't care yeah. I just bought a wholesale deal from an agent for 200 000 wholesale fee. Okay, like i just don't care, he made two hundred dollars. I made 200 000 wow, but it was a great deal for a great deal for me like i don't care what anyone else makes yeah.

If my numbers add up, if your numbers make sense, do it who cares yeah, you don't have to try to monopolize everything. No dude. Look those people dude to find a deal. We know it's hard yeah.

You should be rewarded, you should yeah. Absolutely. That's. That's well said all right, so you got a pool how okay, how valuable are these in vegas, because in california, in my area, some people see them as a liability they're kind of like i don't want to maintain it, but in vegas it feels like you almost Have to have a pool, yeah vegas people, definitely value pools um.

If you're dealing in this price point million plus yeah, you better have a pool: oh wow, yeah, okay, on entry level, they maybe add 10 20 000 in value sure. But up here like there are people there's people if this, if there was no pool they buying it so and that's always interesting to note when people spend 100 grand building a pool you're getting like 10 20k in value of those 400 000 homes not worth it. Yeah not worth you wouldn't add it on a flip average. No, so we have a couple other luxury flips we're doing where we're adding a pool.

It's gon na cost us like 60 grand each pool, but these got to be million dollars. Yeah they're a million dollar plus because they're gon na add two 300 000 in value. So why are you getting that multiplier on the these expensive properties versus the small ones? Well, i think the deal itself. We got a good deal because the seller knew they didn't want to add the pool they didn't want to like deal with the headache, and so that was the only downfall along with the renovation of the house too.

So that was already discounted in for that right. Whereas, probably when you're in the more median neighborhoods you're kind of constricted by what the other comps are anyway yeah, you would never put a pool in an entry-level home. It will never make sense perfect unless you're the homeowner who's over improving everything yeah exactly okay, perfect. So let's continue on wow uh.

What i mean you ever get worried that, like some of the stuff you buy and hold, it would become less valuable as they build more or not. Really, are you just getting population but to offset that yeah vegas is getting so many new people that i'm not worried about it? I mean i've been in real estate since 2010. It's done nothing but go up, and i know like you talk to everyone else and they're like oh well, just wait for the next yeah you haven't been through a downturn, i'm like well, i'm not gon na bet that it's happening anytime soon. You know, and i think that's one of the biggest downsides is you constantly have individuals who say things like well, i'm gon na wait for the next crash and they never invest, and so they end up waiting 15 20 years.

Then the crash comes they've built no assets, so they literally have no money to buy. The deals anyway is somebody like you. Who's got 30 rentals. If there's a market crash you're going to go, fine break the piggy bank, let's refine some of these take money from here and let's go buy more the more assets you acquire, the more prepped you are for when there is a crash yep.

So this is a funny story. I um i did. This is like a pig pen, so i did a youtube video on this house because i was like hey. This house is interesting.

You know, i think i'm gon na rent it as an airbnb, and so i said this is a little garden that you know whatever the owner had, and somebody commented and said. I lived in that house. That was my parents house that sold you it and that was actually a tortoise farm. Oh my gosh wow, that's incredible yeah, so the tortoise were just having a great time.

Okay, i'll tell you one thing i might add. If i was flipping it, i would consider putting a two-car garage right here - oh yeah, because right now the house doesn't have a garage. That's it's only negative because it got converted. People want their toys in this neighborhood right.

So this is a perfect spot to build a nice and a garage is not expensive. There's nothing in it now. Would you permit that we'd have to permit the garage yeah, okay, because you're adding all that new square footage yeah? But that's such a pain in the butt man? How does it take you to get permits out here? It's bad in cali, it's not as bad as cali, but it sucks so i'll. Give you my my flip and big bear yeah um that was gon na, be a rental, but now is a flip because we've been waiting two years to finalize permits.

Did you get reported, yeah yeah? That's seriously, i got a look. I got reported on one property, because one idiot contractor rana saw at 6 00 a.m on a saturday morning like what an idiot okay so that led the building and safety department to watch my youtube videos go to all of my other projects yeah. So now i have four in building and safety and code for stupid things yeah, like kitchen remodel like really so it's so horrid. Now that the permit process is so bad just everywhere.

Oh yeah, it's like dude to build this garage. How hard is it like? I should be able to get a permit in two weeks. You should be able to and build it. It takes me longer to get a permit for a ceiling fan all right.

Let's see what else you got there. Oh yeah yeah hey, so i got your next youtube studio over here. Oh the little shed there dude it's nice, okay, better of air conditioning hey. We can add it in yeah, that's true! So how like do you ever do mini splits down here, just full on not fit systems here.

Everything is pretty much hvac just duck everywhere, yeah yeah this is, i mean this is like a tough shed or something yeah dude. Look at it! It's nice! Oh that's! Actually, not bad, you could definitely film in here yeah just some foam for the echo and that's it you're done this is this. Is very nice finished like this yeah? I was not expecting this. Usually it's just like the wood studs yeah.

This is nice. Yeah easily. Add a little ac in there you're done you're done nice job sitting at solar or what yeah it does yeah it does. I didn't even know thanks for pointing that out.

Geez man, you got ta get to the level where you don't even know what your properties have, that you're buying back to ryan's level, yep so wow, so, okay, ah wow i mean i'm, i'm surprised that you can pull the revenue you're going to where it is. But i think it makes sense the more and more you talk about people with their toy haulers or or the atvs, and what you can do here and you're also investing in big bear. So you kind of know about that. Outdoorsy activity people love it, especially with kova, dude they're like oh man.

I don't want to be near people. I want to go out in nature and have fun and yeah that makes sense. Yep, let's um, let's walk through and then get to the next property. All right, but this cool this is super insightful uh.

How would okay now i want to ask about your third business, the fun? Why not just go around and buy up all these single families and rent them out that you guys are flipping. You got 60.. You can turn those into your fund right now and you'd have 60 already right. Well, the rental rates in vegas aren't great, okay, really, okay, so because we like yeah, i thought the rentals weren't good in california they're not as bad as cali, but you know like, let's just say, uh the median 400 000 house, you're gon na see it after This one um, i would guess that rents for maybe 2 000 yeah, okay, it's not great.

Your payment's gon na be like 1700 on it yeah, whatever okay, and so it's like when you can go flip that and make 30 40 000. It just doesn't really make sense: okay, um! So that's why the fund isn't buying single family here, but we're gon na buy. You know in places like georgia, where it makes sense, but are you concerned at all about poverty rate or population decline in certain areas in georgia? Um i mean look, there's always pros and cons to every market sure, but that's why you're getting paid more cash flow. Yeah compensated for that yeah, so i mean there's no perfect market.

Where you get cash flow appreciation, you can't hire. Do you think you'd uh segment out your fun to where it's kind of like here's, the high cash flow? Here's like the appreciation or like yeah. So one thing that we learned from our very first race was people don't really like blind funds. No, they want to know what building it is, and so what we've actually had to do is close.

The fund after this first deal to get our final investors in because they're like look, we love this deal, but we don't know what you're gon na buy after this deal and they really wanted to be involved at all those levels. So just for transparency, a blind fund means uh in you essentially are able to raise, say five ten million dollars, and then you go shopping for whatever you want right, but it sounds like in real estate. Your investors don't like that they they want to know the address. They want to run their numbers, they're all savvy, and so we got a lot.

We raised a few million blind right they're, like hey ryan. We trust you whatever you want to buy. Okay, we're with it, but all the guys who are above a million bucks. They wanted to know hey dude, what am i getting into and when we showed them that deal they said yeah.

We love that deal, but we don't know what else you're going to buy in the fund, and so i had to make the choice of like all right. You know what going forward i'm just going to go: syndication-based yeah, where hey we'll close the deal on this one entity entity next deal. You know exactly what you're investing in it or not yeah, and i think it's easier to raise money that way, probably and but see when you do it that way, it's gon na be basically impossible to do single families yeah, unless you just somebody selling a big Portfolio, ah, okay, okay, we've been we've been sent portfolios in different spots, we're like hey here's, a hundred single family homes. You know it's kind of like an apartment.

At that point, that's true. What do you say to people who are like? Oh, you start going out there buying the single families you just wall street corporation driving up the rents. You see those people yeah, i mean it's just what's happening. What are you going to do like the market? Yeah you're gon na complain like they see that dude they can get low interest.

Housing is going up. There's no supply rents are going up like it's a smart bet, so in other words uh. If, rather than complain about it figure out how you could join and get into real estate, yeah, there's nothing to say it's just dude complain about it or get with it and then cancel rent all right. Let's get something yeah, okay, so like people actually value fireplaces.

No, no, okay! No people don't care, no okay yeah, although it does get colder here, yeah in the winter. Oh there's a staircase going somewhere here. So this is the um converted garage. Oh my god! This is a crazy floorplan, yeah! Okay, so that was you know.

Laundry room this is where the garage would have led to, but now this is, but you know now that we don't have a garage like i said i think we may add one down there. I wonder if you could get like just you even talk about just the tough shed ones yeah. We could definitely throw, and i don't know that you could really even tell the difference when you go into that thing. That's nice, that was nice yeah by the time.

I do an update. There might be a tough shot out there. You don't need to try to get that commission every single time and it's one of the things i learned. I will say, though it was very weird.

I let my broker's license expire for a few weeks, because i thought i'm just using other agents anyway, right and uh. When i didn't tell folks that i was a realtor or broker they, they were more reserved. That was a little like weird experience. I had yeah when i call now hey i'm a broker, but i want to write an offer through you, they're, very open yeah, and it's almost like once you're licensed within something to that effect, but i'm still paying the other commissions yep yep.

I always let them represent me. I'm like yo any deal you get bring it to me, make double commission, you don't even need to list it. Nice so tell me about the car why the car, so this could be a rental property. Dude.

Okay, you know i was never. I was a frugal guy for a long time. Um then i bought a tesla last year for the first time and i loved it and then um. You know i've been switching out cars like every year, so i drove the model x for a year.

Are you buying or leasing them, or what are you doing? I was buying them, but um i sold it for what i paid with just the crazy car market. There you go and then um. This is the first time i've ever bought a sports car in uh. Like my life wow, i've always had suvs.

I mean i love this. I i've never had a car like this, with the exception of the model x, yeah and they're, so tempting i keep telling myself like kevin. Just just buy some more stock or buy a rental or something like that uh. How is it now that you have it dude? I love it.

You love it. I like it. I've told graham this too, i'm like dude at some point. You just got ta enjoy life.

Like that's a good point. You know not everything can be the best roi yeah, that's true, not not every starbucks you buy needs to be an roi calculation. You don't need to roi everything man once you make enough, you can. You can start enjoying some things so, but when you started when in 2010 it was a grind yeah and you're frugal yeah, i'm frugal, i mean i didn't, buy the model x until 2020..

Oh no yeah! I had become a millionaire and done all these things and i was still driving. You know a car i paid less than 20 000, for i think when a lot of people start, they think they've got to uh almost start with some of the fancy cars or the fancy, watches or whatever, and and they haven't really built wealth. Yet right, they're they're chasing a little bit of passive income here or there, but then they're also spending that on their lifestyle yeah, it's almost like they're increasing their lifestyle as they're getting passive income yeah. For for you, what was your priority just getting as many asses as you could, building your wealth dude, that's all i cared about was just living frugally, reinvesting every dollar, not doing any of that and i'll tell you.

The only thing that really changed for me was. I mean obviously i started making more money, but with content things started to change because you can start seeing like there's an roi in doing cool things. Uh yeah good point. You know like buying this car.

Not only does it make content, it attracts people whatever like it'll pay for itself. If you use it the right way and you don't want to be a douche with it and be like. Oh, you know look at me in my lambo whatever, but like with content and a following. You can definitely make an roi with nice things that makes sense so, but there's also that risk that of maybe sending that misimpression to newer investors right right or to the folks who are trying to get up and going, and so i think always, it seems like You regularly refer back to started off frugal yep 10 years of frugality essentially, and these are the fruits of that yep.

Now there are a lot of folks who are afraid of working hard. I feel like in that grind. What do you say to folks like that? Like maybe, if you get a newer agent, how does it work if somebody's, just like i you know i want to put in maybe 20 hours, but i just want to chill and enjoy life. You know you only live once proud right like how do you respond to that man? My thoughts on this have changed over the years because i used to be in the camp of like yo grind: do whatever it takes like just eat crap until you make it yeah right, but i've kind of softened.

My stance of like hey, i do think, there's a balance between working super hard, but also enjoying while you're working like. I don't think you should only work work, work, never treat yourself and do that. I think there's definitely a balance, but if you're just starting out you definitely shouldn't be buying a porsche you should you got to find the balance for what works for you and, if you're not growing every year, with your net worth with your career, then you're, probably Too unbalanced, you're, probably partying and enjoying too much like you, should you know kind of work harder, so either you're. You should be getting that raise at your job or getting a new career to bump your your salary into your top line.

Right, yeah we're building your net worth somehow every year every year you should be improving in all aspects. That's my thing um, but i just don't think that you should only work. I think that's a mistake. What do you say to folks who you know they? Uh they've worked minimum wage uh, you know maybe they've graduated to be a manager or whatever, but but their incomes under 50, 60 000 a year.

What how can they graduate? What is it a different career? They need a skill set. What do you say to those folks man? I think they definitely need a side hustle and i mean with youtube and all these other things side. Hustles aren't limitless dude like real estate. You know crypto and stock trading and e-commerce, like the list goes on and on with all the different side hustles today now.

Should it be a side hustle that has the potential of like taking over your primary or uh just driving uber. You know it really depends what you want to do. I mean for a lot of people uh, i wouldn't drive uber, but a lot of people like are doing a couch, flipping side. Hustle that, like that, was my first viral video and i was telling people how, when i wasn't doing very good at real estate or nothing, i just started flipping couches.

You literally mean selling couches yeah. I don't know about it. Okay, so uh long story short before i started flipping houses. I was flipping couches and i made 8 000 bucks a month doing that what yeah and so people didn't.

Believe me i was like dude, i mean here's, how i did it and i did a youtube. Video on it, so i did a youtube video on it and it's got over 700 000 views right now, which is like my highest viewed video, not even about real estate. It's about couches and initially people were like. Oh no you're lying blah, blah blah, i'm like dude.

Why would i lie about this? This is so dumb and so people started doing it and they're making killings out there flipping couches. Now i see tick tocks about it. I see youtube like it's crazy that, like that side, hustle has exploded wow. Now, how do you balance the tick, tock youtube and all these other things dude? So last year i started my youtube channel.

I started tic tac and all that stuff, and initially i was just like i'm making dude. I was like you and youtube. I was like i'm just making three tick tocks a day going crazy and it worked out um. I think i've got almost 900 000 followers on tick tock, and at this point i actually don't even make tick tocks anymore, because my editors just repurpose all my podcasts and youtubes, and put that on tick, tock yeah do those do well dude they kill it seriously.

Yeah for the i haven't made a tick tock in like six months wow, so they just slice it up and kind of, because on tick tock it doesn't matter how many cuts you have. People just want quick info, essentially yeah like. If you just look um, you can just see these things are getting so many views. Have you ever purchased a car at an auction? Oh wow yeah.

Just have you ever house hacked just straight from your podcast yeah, just quick edited, oh and i can see they're they're kind of cutting together to speed it along a little bit, throw the text on yep, uh shane, but so last month on tick tock. I got 23 million views wow. How do you uncut up content on cut up content? Are you able to monetize this um tick? Tock? Doesn't pay like youtube. I mean the adsense is like a thousand bucks.

Is it worth it? It's not worth it as just adsense. It's worth it, you know brand building, yeah selling, my other stuff, okay for sure got it now. So why start a fund is this? Is this the next big thing for you uh? Why do you want to deal with the stress of these? These millionaire investors calling you and, and bothering you about these properties well for one they ain't gon na bother me, don't invest, they'll, bother, uh investor relations, but uh. I are yeah but uh crap.

I missed her thing, no worries, that's my fault! I'm asking you about getting bothered by your sisters: yeah no worries! This is another area that feels a little bit kind of like out there. So now why start a fund? I mean it's kind of the natural progression. Like you flip enough houses, you can only do so much with your own money, um, even with rentals and they're, with a social media following so many people want to. You know, protest yeah and it's like i've been teaching people how to invest themselves.

For a long time they don't do it yeah. Well, some do some yeah, but there are some that are just like dude. Do it for me yeah, okay, and so now it's just kind of this next step, and i mean you see what the biggest real estate investors are. I mean they're all syndicating money and doing big deals, and so that's kind of the next fun.

Why not? The biggest, though you said, the rent, it wasn't good enough, like you, can't buy the apartment buildings here right, okay, um, are you gon na go to florida or, like i mean why atlanta, so the way that we're doing ours is we're. Looking for really big deals. Okay um, so we get economies of scale yeah that one property yeah um and then it's just a matter of we're not like looking any specific market like we're only buying in florida, we're only buying we're using my network and all the people. I know to just say: hey, send us any and every deal okay, and you know anything that looks good we're gon na.

Do our due diligence, we're gon na look into the market, the deal itself, the apartment and, if that lines up we're gon na buy it. So it's not like with this georgia deal. I was not looking in the georgia market. It just came across your desk yep.

So how many employees do you have for the fun so the fund? We have six people um and they're already people in my other companies. So they're doing what they already do in my other companies for the fun so like for acquisitions, all we do is acquire real estate anyway. So now it's just hey, i'm also interested in buying deals outside of it sure we'll buy huge apartments, so acquisitions, just changing that investor relations. We've already got so many investors with the flips that you know doing it on a bigger scale.

It's not that big of a deal have you ever felt the urge to just have no employees, no dude, okay. This was actually something that i thought about with. You is like man, because i seen you talk about it before where you're like dude. I i do everything like i love it uh, you know, i'm a one-man show just crushing it i'm like dude.

I could never do that. I have to have a team and people doing stuff, because i just don't really like to work that much as it helped you like how many hours a week. Would you say you were uh? Probably at this point 30: oh wow, that's impressive, yeah, okay and it's and you're running a good profit. Yeah.

Do you ever talk about your numbers? Um? Can you tell us anything? Yeah i've done a youtube. You heard it here. First, i mean yes, i did a youtube video about six months ago about what i was making on different businesses. Can you give us the download i'll on the house living business this year? We should do.

I mean it's hard to say yeah, but we'll probably do three to four million and gross okay, i'll, probably net, that myself half wow. How are you getting that half because our margins are so high with everything we're doing like, but this year's exceptional? Well, it's still like the business itself doesn't change because most of my acquisitions guys are commission based, so the model stays the same like everybody is only eaten if we all eat together. Okay, so one and a half to two from that yeah uh fund is a ten-year thing: yeah uh and then uh. You have the brokerage yeah, the brokerage yep.

Can you talk about that, so the brokerage, the tax company? I don't like to talk about those too much, because i have partners, maybe with all the other things you do, because you then have youtube and courses and social media all of this yeah. So i'll say i don't know what like the average is. It just depends how you do it, but i recently had my first ever million dollar month. Congratulations, oh wow! Everything combined everything combined good for you yeah! Well! Congratulations! That's amazing! Yeah, okay, very good insights! Let's uh! Let's keep going then so! This is a finish flip.

This video is brought to you by my programs on real estate, investing property management and agent sales link down below with a coupon code, expiring october 29th. So where are we now? What is this 420? This? This is listed at 420., okay, but this is a typical house in vegas. This is the median price right around 400 000. So i want to show you because this is what every flip we do looks like see and that's smart having a standard for your rentals.

That way, you're not emotional, oh well! This house should have this color, that accent wall. Forget that crap same thing: every single property, that's how you scale! This is nice. This is what every flip looks like if anyone watches our channel i've kind of stopped doing before and afters, because it's the same thing every time like guys, you guessed it that's like me and i love the blue tape for the little paint shop. I do the same thing and i love this because it looks good, but it's probably like forty dollars doesn't cost anything.

It's great and i think people get sold a bill of goods when they get into home ownership, often that they have to spend. You know a thousand dollars on a chandelier yeah and it makes it light like stupid. It doesn't come out and, like you know, give you a massage. No, we didn't do anything crazy, but you could just get these uh.

I mean these are off the shelf cabinets here, yeah very nice kind of craftsman style. You do the same sort of black contrast. I imagine every time this white quartz is the same. This is what i use exactly the counter top that i used yeah uh, very nice yeah i mean these.

Do you ever buy them on amazon, dude whatever's in stock today? That's it right! So this these kind of change, because just like dude, if it's not in stock, just get a similar one, don't order. Oh my gosh. As soon as you get to custom order, it's yeah, it's ridiculous! Yeah! It's phenomenal! Yeah same door handles hinges! It's easy enough! Put the door closers on them. Uh people spend a fortune on appliances but come on man.

You can do an appliance package for like two grand well, the other thing, quick tip for anyone flipping. Typically, you don't need to include a fridge. Yes, so don't waste money on that if you're flipping the house good point uh and then these light fixtures you got up here. These are like the boob light yeah.

That's what my wife calls them too. Yes, they're, like 20 bucks dude, i don't cost anything. So smart there's no sense in spending that kind of money uh on on light fixtures. Most people might notice.

They love your floor plan. It's clean! It's moving right. If somebody really wants they're gon na change, it themselves anyways. Even if you bought a hundred dollar one they're, the type of person who wants to change it, i want my two hundred dollar board.

Good point. This is a typical bathroom for us. Are you actually title yeah? Did you usually aim? You left the tub yeah nice? That's nice. Do you ever just glaze some of the older tiles we do yeah yeah, it just depends on its condition: yeah yeah! Well, some of them.

You can't save yeah sure now. Do you ever go fiberglass from uh? If you had to tear it out? No, it depends on the neighbor or just no, no, because for us, the tile versus the fiberglass. It's maybe like seven, eight hundred bucks, more okay and you have really good tyler yeah. You got the master over here, oh yeah, and it's beautiful.

You went floor to ceiling on the tile yeah. Typically, they would do the mosaic inside of here right, not sure why they didn't, but yeah it works better. So any reason you go to the ceiling just your standard. A lot of people stop two feet under once.

Again, i think sometimes they do sometimes they don't. It really just depends and honestly, once you've got your system down, it's a difference of a couple hundred bucks, probably yeah. It's not a big deal. Great craftsman baseboard same thing, three-bedroom home, i mean you know it's like 1300 square feet easy.

This is what people should be starting with when they're getting into owning real estate, because it's great and then you can, you can move to the four bedroom and get another five percent down low, yeah and then move to the five bedroom. This is the most desirable type of home because it has a two-car garage, the home's, a little newer, three bedroom. You know the backyard, it's not like the other house we saw, but um the size is really good for las vegas yeah. You got a nice covered.

Patio everybody's doing the aluminum patios out here is that just the people don't want to deal with the rotting wood anymore, which i think is great. So we didn't add this. You know yeah. No.

I figured that, but, like you haven't dealt with so many properties out here, everybody's got these aluminum covers yeah. I don't think they're that much more and they look better they're much cleaner yeah. They last longer they're, not weathering. I mean, i think, they're great yeah, so i think california's got to pick that up.

One thing i'll say too, for a quick tip for everybody is like in vegas. We never do the backyard like whatever it is. We're gon na leave it dirt and do you bring the rocks in them? No, these were already. This.

Was here yeah, oh, so you would have left this dirt yep. If it didn't have really well, especially in today's market yeah, it doesn't matter they're gon na buy it it doesn't matter. What are you gon na do like me, spending a thousand bucks on rocks, isn't gon na make any more money. So don't do it? Yeah simple math, yeah wow.

Well i mean it's perfect and then the other little. The other thing too, that that's nice about flipping is that the buyers are going to do their home inspection yeah we're going to find a little chick and dooley stuff or whatever right.