Ryan Pineda is a former Major League Baseball player who played for the Oakland A's and the Los Angeles Dodgers. He then went on to become a full-time real estate agent in the Bay Area. In this episode, Ryan talks about how he got started in real estate, how he found his first deal, and the mistakes he made along the way.
00:07:26.000Because I think this is the first live stream we've done with you.
00:07:29.000I think last time we did something pre-recorded, so it's great to be able to have you on where it's live and people can ask questions and all that other stuff, so this is way better.
00:08:41.000and getting into this whole social media world.
00:08:44.000Yeah, so I got drafted by the Oakland A's in 2010. So, you know, I never really wanted to get into real estate or, you know, do any of these other things.
00:08:54.000But, you know, in the minor leagues, you don't make a bunch of money.
00:09:12.000And then eventually, I got into flipping houses in 2015, and that was where my life changed.
00:09:18.000I flipped my first house, made $25,000, and it was like, dude, if I just do that over and over again, it's going to be, I mean, who knows what we could do.
00:09:27.000Can you take us through that first deal, how you found it, how you did it, and then some of the mistakes that you made on it?
00:09:34.000Yeah, so that first deal, you know, I found it on the MLS. So that's just a typical property you would see on the market, like on Zillow today.
00:09:44.000And, you know, they wanted $115,000 for it.
00:09:47.000You know, you miss 100% of the shots you don't take.
00:09:50.000So I just lowballed them and offered them like...
00:12:17.000So, can you tell us the difference between wholesaling, fixing and flipping, and then just buying outright when it comes to real estate investing?
00:12:26.000Yeah, so fixing and flipping would be, you know, what I did on that very first deal.
00:12:32.000I'm going to go get a loan, hard money loan, typically short term.
00:12:36.000You know, I'm going to buy it with the intent that I'm trying to just fix this up, get in, get out, sell it, and make a profit.
00:12:43.000You know, that's a typical fix and flip.
00:12:45.000And that's what I started doing from the beginning.
00:13:07.000But instead of having to go and buy the deal and fix it up and then sell it, you just sell the deal directly to the person who does all that.
00:13:17.000So if I'm a wholesaler, I go find this really good deal for, say, $300,000.
00:13:53.000I'm just selling my rights to the contract.
00:13:55.000And then Myron just pays me the difference between what I have it under contract for and what he's willing to pay.
00:14:01.000So if he pays 320 and I have it under contract for 300, I'm going to make $20,000 without having to fix it up, buy it, put any money into the deal.
00:14:12.000And all I got to do is just get really good at finding deals.
00:14:17.000I've noticed that's like the main way everyone gets their feet wet in the real estate game because it allows it where, unlike the other different pursuits, you don't have to have as much cash into it.
00:14:26.000You just got to put more time in, which is finding these deals than bringing them to...
00:14:31.000If someone wanted to get started with wholesaling now, obviously it's a little bit more of a competitive marketplace, how do you think one should go about wholesaling now?
00:14:38.000Because there's a lot of people out there that want to get into real estate, might not necessarily have the cash capital, or might not want to take the risk of taking on a hard money loan.
00:15:39.000And guys, just so you know, we're going to do a Zoom call after this with the Cals Club guys with Ryan where you guys can actually ask your questions.
00:15:45.000I mean, I will take some questions as well after we do the stream, but definitely get your questions in now.
00:15:51.000Get your Super Chats in if you've got questions for Ryan.
00:15:54.000Obviously, very well-endowed investor in the world.
00:15:59.000So nowadays, Ryan, you got your feet wet with...
00:16:02.000Actually, we talked about wholesaling.
00:16:04.000And let's talk real quick about fixing and flipping and ARVs and everything else like that.
00:16:09.000If someone looks at a deal, right, can you explain to them what after a pair of market value is?
00:16:14.000How do they analyze a deal for the purposes of fixing and flipping?
00:16:17.000Because I know this is also one of your expertise with me.
00:16:19.000It's not my thing, but I know there's guys out there that have all metrics that they use to analyze if the deal is good from a fixing and flipping standpoint.
00:16:28.000Yeah, so you mentioned ARV. That's a big metric we use, after repair value.
00:16:33.000And that's essentially, what's the house worth once we fix it up, right?
00:16:37.000And, you know, in the example I gave, if I was selling to Myron, you know, I said, hey, it's worth $400,000, you know, fixed up.
00:16:44.000So, you know, we're still going to have to put money into it.
00:16:46.000But even if Myron puts money into it, say he puts $20,000 fixing it up, you know, if he bought it for $320,000, he puts $20,000 fixing it up.
00:17:03.000I mean, wholesalers at the end of the day are good at really two things.
00:17:07.000They're good at finding sellers who are willing to sell at a discount, and then they're also great at finding buyers who are willing to pay top dollar.
00:17:15.000Because, I mean, like, okay, maybe Myron will offer me $3.20 for it, but maybe somebody on this live stream is like, yo, I'd pay $3.30.
00:17:27.000So, um, what is the, uh, cause people like to use different, um, percentages for, um, after impair market values, et cetera, to where the deal makes sense.
00:17:37.000Cause you know, some fix and flip projects are a bit more complicated than others.
00:17:42.000What are the numbers that people should look at?
00:17:45.000When I tell people, cause you know, I'm a buy and hold guy, I tell them, Hey man, guys, try to get, my metric is try to get at least bare minimum eight to 10% cash on cash return on your deal when you buy and hold.
00:17:56.000From a fixing and flipping perspective, what are the bare minimums you would say in this market where it's fairly competitive?
00:18:02.000What would you say is some good numbers that people should be looking at?
00:18:06.000Yeah, so every market's different, right?
00:18:33.000At the end of the day, if I'm a wholesaler, the best person to sell to is not even the flipper because the flipper isn't going to pay the most.
00:18:42.000The flipper is actually going to pay the least.
00:18:44.000A buy and hold guy is going to pay more than a flipper, but then the person who will pay the most is the retail buyer.
00:18:52.000That's the person who's actually going to go live in the house. - Yeah. - So, you know, if I find somebody who's like, yo, I'll pay you 370, 380 right now, 'cause I don't need to make a profit.
00:19:08.000And then also you get the whole thing of, oh, I love this house, and they'll be, you know, they'll be more willing to overpay, versus like, an investor or a flipper is gonna look at it, you know, only from the number side.
00:19:18.000They're not going to give a shit about how the house makes them feel versus someone that's going to live in it.
00:19:22.000They're going to be extremely emotionally attached, which you can use to your advantage.
00:19:26.000Well, one of the things we do now, too, with wholesaling that was never really done before, which is new, is a lot of times we're able to market the property on the MLS. Okay?
00:19:37.000So, like, instead of having to go find these buyers and, like, you know, meetups and all these lists and all these things...
00:19:47.000We can go put the property on the MLS if we get the right paperwork.
00:19:50.000And now all of a sudden, we're selling it to an end buyer, somebody who's actually going to live in it.
00:20:20.000What do I need to get started in wholesaling itself?
00:20:23.000Okay, so if you want to get started today, I mean, number one, you got to understand, you know, the contracts and what properties are worth and all that stuff.
00:20:32.000And so, you know, obviously we can help you guys out with that, but, you know, however you choose to go do that, whether it's watch YouTube videos or get a mentor or whatever, right?
00:20:41.000You're going to have to learn the mechanics, right?
00:20:43.000Just the contracts, the values, all that good stuff.
00:20:48.000Okay, and by the way, I saw somebody ask this.
00:20:49.000You don't need to be a real estate agent to do any of this either.
00:20:52.000You don't need to license any of that stuff.
00:20:54.000But once you know the basics, the second thing you need is now marketing.
00:20:59.000So once I'm good at, you know, I understand how real estate works.
00:21:02.000I understand what properties are worth.
00:21:03.000Okay, now I got to get good at marketing.
00:21:05.000So, you know, how am I going to reach these sellers?
00:22:03.000I mean, I always think that you should start on your own on anything that you're going to do new.
00:22:07.000Like a lot of people, they try to go just pure passive out the gate.
00:22:11.000And if you're going to go pure passive out the gate, right, how are you going to hire a team and, you know, know what to even train them on?
00:22:19.000Because you don't even know what to do.
00:22:40.000We're going to read the chats here in a little bit if you guys got questions.
00:22:43.000I'm a firm believer that the first real estate deal that you do, you should do it by yourself.
00:22:48.000Shouldn't necessarily have other people go in a deal with you.
00:22:52.000Learn it from A to Z, from finding the property to getting it under contract to funding it, depending on how you're going to purchase it, of course.
00:23:00.000If you're going to fix and flip it or use a hard money loan, etc.
00:23:04.000And just do the entire process by yourself so you understand it.
00:23:07.000And then from there, then you can kind of expand.
00:23:09.000And I think buying in your town, in your city, for your first deal at least, I think is the best.
00:23:14.000I don't have a problem with buying outside.
00:23:15.000But I think for the first deal, you want to really be able to see everything and do everything.
00:23:19.000Do that first walk through by yourself.
00:23:36.000So, can you tell us, like, kind of what it is, how you go about doing one, and how to kind of navigate it because this is something where it's a great tool to have, right?
00:23:45.000You could get some capital immediately, but, you know, it could come with some really bad consequences if you make some mistakes.
00:23:52.000Yeah, so, transparently, just, you know, I've done, like I said, six, seven hundred flips so far.
00:23:59.000I have lost millions over the years on bad deals due to hard money loans.
00:24:05.000So, you know, I'm over here telling you, like, transparently the truth about this business.
00:24:10.000Some people are like, oh, well, you know, it seems so easy.
00:24:12.000It's like, bro, no, like, you're right, Myron.
00:24:14.000The negative side of real estate investing is you can actually lose money, okay?
00:25:32.000Compared to, you know, if you hold a property for five years, yeah, the interest is going to kill you at that point.
00:25:38.000Yeah, and this is something that I've seen a lot of guys use, and it's like, you know, this is...
00:25:44.000I mean, would you say it's better if possible?
00:25:47.000Well, in the fixing and flipping world, hard money loans is kind of the way to go.
00:25:51.000How does someone go about getting a good hard money lender that isn't...
00:25:55.000Because, you know, obviously the business is filled with a lot of underground types, we'll just keep it there.
00:26:00.000Yeah, how can someone go about getting a hard money loan in the best and ethical way, since it's such a dirty business, it can really leave you in a bad position if you fuck up?
00:26:11.000Well, you know, at the end of the day, I think hard money kind of gets a bad rep, maybe from the past.
00:26:19.000But if you, I mean today, right, most hard money lenders are backed by multi-billion dollar hedge funds.
00:26:27.000So, you know, like our partner on our hard money lending business, it's a hedge fund.
00:26:32.000You know, I don't have billions of dollars.
00:26:33.000So these guys literally just underwrite loans for a living all day, every day.
00:26:45.000If you don't pay the loan and it becomes due, just like any other loan you take in your life, whether it's an FHA or conventional, you're going to go into foreclosure.
00:26:55.000So I think that's the key with anybody who's getting into real estate is make sure you can cover your debt, whether you're getting a rental or you're going to do a hard money just to do a fix and flip.
00:27:06.000Make sure you got enough money to make those interest payments.
00:27:08.000What happens, Ryan, if you can't make those payments unless you're not able to capitalize on a property like you want to?
00:27:51.000And so, you know, for me, when I talked about how I've lost money in real estate over the years, it's because, you know, I had a property, let's say the market turned, so example, I'll give you an example.
00:28:01.000You know, in 2022, they doubled interest rates, right?
00:28:05.000Like every, you know, we had all these cheap rates, market was on fire, and then they doubled rates.
00:29:10.000So you're saying basically, in a nutshell, wholesaling is the way to get in the money without having the headache and stress of doing it actually yourself.
00:29:18.000Bro, you really don't have much risk at all.
00:29:29.000There's so many ways to make money that you guys have talked about.
00:29:32.000In my opinion, I don't think there's a better way for people who know how to hustle and do sales than wholesaling.
00:29:41.000Because what else could you sell where you don't really have to put that much money into it to start the business or anything, and yet you can go make $20,000, $30,000?
00:29:51.000I don't know of anything else you could sell that's like that.
00:29:54.000And then also, too, to know that it's a skill that you can use the rest of your life You know, because real estate's never going away, right?
00:30:02.000So if you get really good at wholesaling and finding deals down the road, when you actually want to start keeping the properties for rentals or flips or whatever, you're going to know how to do that because you already know how to find deals.
00:30:15.000Yeah, and that's honestly one of the hardest things is finding deals.
00:30:19.000I mean even myself, I've been like scouring the internet with my team trying to find deals and it's something I'm gonna have to put more of my own time into because as the market, you know, as interest rates go up etc and it's hard to find deals, this is where the more savvy investor and the people that know what they're doing are able to find deals.
00:30:39.000Ryan, last time we spoke, if I'm not mistaken, when we were on your show, the real estate market was fairly on fire.
00:30:51.000I think we're in some of the best markets in the country, best states in the country for real estate nowadays with it picking up.
00:30:59.000What's your thoughts on the market nowadays, and what are your thoughts on the trends, different cities coming up, other cities going down, etc.?
00:31:10.000Well, every market's local, so I'm not in tune with all the different local markets and what's popping off and what's doing good.
00:31:20.000What I can tell you is I'm super confident what's going to happen in real estate, especially with Trump coming in, because we know he's going to lower rates here as time goes on.
00:31:30.000And anytime they lower rates, real estate takes off.
00:31:39.000With real estate as a whole, a lot of people who try to time the market, I mean, good real estate investors who are doing lots of deals every single year, it's not like they stop doing deals.
00:31:50.000The market has been slow the last two years.
00:32:54.000You know, the only difference really between you buying before or buying now is it might be harder to find a deal, but that doesn't mean that you're going to stop looking.
00:33:03.000Like, you need to keep looking, and if you find a deal, like, still take it.
00:33:06.000The other thing that I tell people who have that mindset, who actually don't even, haven't done deals yet, or have done very few, I'm like, dude, so somehow, you who has no experience, who doesn't know anything, is somehow gonna time the market?
00:33:37.000What are your thoughts on, yeah, you know, because people say all the time, right, oh, market's going to crash, market's going to crash, market's going to crash.
00:33:46.000That's something that I've been hearing now for four years.
00:34:26.000I remember writing up a contract for a guy.
00:34:28.000This house literally, and dude, honestly, probably you guys would probably like this, probably a stripper owned it because back then in Vegas, all these strippers had multiple houses and all this stuff, right?
00:34:39.000It was crazy in 2007, 2006 when anyone could buy a home, right?
00:34:45.000So, this house was brand new, built in 2008, sold for like $350,000 or, you know, whatever, a couple years prior.
00:34:52.000Well, it's on the market now for $90,000.
00:37:06.000Because now what's happened is, and I'm starting to realize this too, Ryan.
00:37:09.000I don't know if you feel the same way.
00:37:11.000It's almost as if it's better when the interest rates are low and paying a little bit more for the house than interest rates being high and paying less for the house.
00:37:20.000At least, I don't know, when I work my numbers here in Florida, it tends to be better where you're getting a better rate and paying a little bit more than getting a higher rate and paying a little bit less.
00:38:37.000Yeah, so I wrote a book called The Wealthy Way.
00:38:38.000That's what the podcast is called as well, Wealthy Way.
00:38:41.000And it's essentially that it's really not that much different than what you guys teach, just in a little bit of a different way, where it's like, yo, I want to be great at all areas of life, man.
00:38:52.000Like, I want to have great relationships.
00:39:08.000And whether it's if you're trying to go find a girl or whether it's you're trying to go and just live a cool life, dude, if you're fat and out of shape, it ain't going to matter.
00:39:19.000If your relationship sucks, it doesn't matter.
00:39:23.000Man, I've gotten to interview a lot of rich people over the years, and I've seen so many of these guys depressed, their life sucks, they make all the money in the world, and it still doesn't fulfill them.
00:39:34.000So it's really helping people find fulfillment and be excellent at everything.
00:39:39.000How do you budget your money now with all the income coming in?
00:39:42.000Do you put 10% towards savings, the rest of the world is real estate?
00:39:46.000How do you budget your money now with the money coming in?
00:40:04.000Second thing would then be, you know, running the businesses and everything else.
00:40:08.000So, you know, the biggest investment I actually make is back into my business, you know, because for me anyways, if we buy a fix and flip, I don't really consider that like an investment because I'm not going to hold it long term.
00:40:20.000I'm like, hey, it's just a way to make money.
00:41:21.000We should do some chats with the supporters?
00:41:23.000Yeah, yeah, we can, and then we'll go into Zoom call where we can go into more detail.
00:41:27.000Guys, you guys got like a real estate expert here, and he's obviously an expert in something that me and Fresh are not.
00:41:32.000Fixing and flipping and wholesaling is not our thing.
00:41:35.000I've been extremely clear about that because people think, oh, I'm in real estate, but then I ask them, well, what do you do particularly in real estate?
00:41:42.000And, you know, this is somebody that obviously, and I would argue that fixing and flipping is very difficult, you know, You should get a mentor.
00:41:56.000You just need to know what you're doing and how to find a deal, which actually, you know what?
00:41:59.000We should ask Ryan about how should people go about finding deals if they want to do their first wholesale deal, what they should be looking for, etc.
00:42:17.000Yeah, you know, we could do that one first.
00:42:20.000So yeah, how does, before I read this question from one of our supporters here, and guys, get your questions while we get this question answered.
00:42:30.000What should they be looking for to find a deal?
00:42:32.000And if you want, you can go ahead and do how to find a deal for a wholesale perspective, how to do a deal, obviously, from a fix and flip, and then maybe one for holding if you want.
00:42:41.000So I think for all three, the process, how you first go about it is the same.
00:43:49.000If I'm going to wholesale, I know I can wholesale it still and make money.
00:43:52.000If I'm going to flip at $3.20 all in, I'm going to make money.
00:43:56.000And if I keep it as a rental, I can do what's called a burr.
00:44:00.000I don't know if you guys talk about burr at all.
00:44:03.000We have, but you can go ahead and describe it to people because that's very important for people, especially getting their feet wet in this.
00:44:10.000Yeah, so BRRRR stands for buy, renovate, rent, refinance, and then repeat.
00:44:17.000So, you know, if I bought it at a great price, I fixed it up, I'm all in at 320, I go rent it out, it's cash flowing.
00:44:25.000I'm then going to go refinance the loan, which in most cases you could refinance at 80% of ARV. So I'm all in already at 80% of ARV, 320, it's worth 400. I can technically own this rental property with no money in the deal.
00:44:42.000And I've done this many, many times on rental properties.
00:44:45.000I've done it on my own personal house.
00:44:48.000So the current house I live in, This is just an illustration of an amazing deal and why people would buy from wholesalers, why wholesalers can make money.
00:44:58.000So my personal house, this wholesaler got the deal under contract for $1.6 million.
00:46:08.000And, you know, I live in it right now, but, you know, long story short, I was able to refinance it, get a loan for $3 million, and I have no money into the deal.
00:46:47.000Well, I bought and hold it for the last two years, but now I'm going to sell it and make money.
00:46:53.000So, you mentioned something really important before, all in.
00:46:58.000Can you explain this all in and what that encompasses?
00:47:01.000I'm assuming you're talking closing costs and everything else like that, but can you kind of explain that to the audience that might not necessarily be familiar with real estate terminology?
00:47:09.000Yeah, all in would just be the purchase price plus the renovation expenses.
00:47:15.000So if I bought it for $300,000 and I put $20,000 of renovation, I'm all in for $320,000 and it's worth $400,000.
00:47:26.000No, and I think that's something that's very important that people obviously need to take into account where, you know, when you're buying a home, it's not just you're buying the home.
00:47:33.000You also got to pay, well, if you have a wholesaler, of course, there's a finder's fee, and then closing costs and everything else like that as well would come into it.
00:47:41.000Ryan, real quick, just before we do the chats.
00:47:43.000If you're 20 years old now, going back in time, what would you do to make money, and how would you start your financial success route now at 20 years old?
00:47:52.000Well, let me preface this by saying I've done so many side hustles over the years.
00:49:34.000If anything, like with wholesaling, really what you're, the thing that you're going to be spending the most is time.
00:49:39.000That's what you're going to be, you know, doing.
00:49:42.000But once you get good at finding deals, et cetera, and you got people that are looking for deals, then it just kind of becomes like almost an assembly line approach.
00:49:49.000But guys, if you're starting out, you're a brokie man, try different things, man.
00:49:53.000You never know what's going to hit, but try multiple things to see what happens for you.
00:49:57.000Let's go ahead and hit some chats here, and then, guys, we're going to be having a Zoom call with our Castle Club people, Castle Club Premium and regular Castle Club.
00:50:06.000Our Castle Club Premium guys are going to be in the Zoom call asking questions, but we're going to televise it to the Castle Club guys so you guys can actually get that sauce behind the scenes.
00:51:52.000Let me ask you this, Ryan, because this is something that's always had me very, I guess, apprehensive to deal with the fixing and flipping, right?
00:52:01.000Because it can be fairly labor intensive.
00:54:13.000I'm going to go get a contractor, walk this current house, see what it's going to cost to get it up to that level, and then the contractor says, maybe it's $60,000 to get it to that level.
00:54:25.000So all I do is I say, okay, it's worth $400,000 fixed up.
00:54:34.000So I wanna be all in at 320. So if I'm all in at 320 and I got 60K of repairs to get there, then I minus 60,000 from 320. So now I'm at 260. So 260 is the price I need it to be at for me to buy this deal.
00:54:53.000It's just simply reverse engineering math.
00:54:56.000That's how you figure out what you can pay.
00:55:00.000And would it be fair to say, because you were saying comps, right?
00:55:02.000So basically, the deal that you're looking at needs to be, I guess, on par with the other houses in the area since residential real estate is so heavily dependent on comps.
00:55:22.000Commercial's valued based on net operating income.
00:55:24.000But yeah, for what we're talking about, just look at properties that are the same square footage that are nearby.
00:55:32.000I guess it's a delicate balance where you're fixing the home just to get it on par with the other homes in the area so that it's comparable versus, oh, let me go ahead and put marble countertops and make this thing super exquisite.
00:56:34.000Bro, they ain't looking for marble countertops and all that stuff.
00:56:37.000You don't renovate a property based on what you like or what you would live in.
00:56:46.000You also don't buy properties based on where you would live.
00:56:50.000You just simply buy properties based on if the numbers work.
00:56:55.000If the numbers work, Especially as a fix and flip, you buy it.
00:56:59.000And so, yeah, I would never over-renovate a property that's in the ghetto where it's like, dude, they're fine with just normal cabinets and lower stuff.
00:59:04.000That's very stereotypical, but no, I mean, that's true because, you know, you're going to find people that are skilled laborers that can do this stuff.
00:59:11.000Yo, we've had cases where, like, you'll pay the person half, and they'll be like, yeah, I'll do the job for you, brother.
00:59:16.000They start, and they're like, oh, my wife is sick, my friend.
00:59:20.000Let me talk about that so nobody gets screwed either.
01:01:28.000Man, there are houses where the backyard is really important.
01:01:32.000There are some where the backyard doesn't matter at all.
01:01:35.000Like here in Vegas, backyards don't really matter that much in a lot of houses.
01:01:39.000I mean, we just have dirt lots on some of these properties, and people are like, yeah, it's all good.
01:01:42.000I'm going to go and do whatever I want with the dirt lot.
01:01:46.000Whereas others, right, if you don't have, like, for example, if you're doing a luxury deal and the house doesn't have a pool, well, you better add a pool to it here in Vegas anyways, because if it don't have a pool, nobody's buying it.
01:03:33.000So you guys got an expert right here that can literally take you guys through this stuff from A to Z. Also, you may be broke now, but learning this now, you know what to do in the future.
01:03:43.000And we got an, I don't know if you mentioned it or if the link's down there, but we got an event on, a virtual event Wednesday through Friday if anyone wants to go.
01:04:43.000difference, like mobile homes are their own whole unique niche, right?
01:04:47.000Because if we're just talking about like a mobile home park or a trailer park, that would be commercial real estate because you're just essentially owning the land.
01:04:56.000All these mobile homes are paying you lot rent.
01:04:59.000And so, you know, the property is valued on how much lot rent you're getting.
01:05:02.000On the flip side with like single family, I have flipped a bunch of mobile homes here in Las Vegas and other places because they actually own the land they are on.
01:05:14.000So So they own the piece of property, and there just happens to be a manufactured home or a mobile home on top of it, and we treat it just like any other normal home.
01:07:48.000That you can use, hey, this is proof that this house is attached to this, sorry, this mobile home is attached to this property, so it's an actual real estate deal versus where you're saying if it's detached, then it turns more into like a vehicle deal.
01:08:38.000I know Justin Waller deals with trailer parks quite a bit, but I didn't know that whole thing where you can attach it and that changes the game.
01:09:25.000So basically, they need that paperwork because there's something there that shows that it's recorded with the, I guess, with the town or the local government.
01:09:44.00013-year Army vet in South GA near Savannah.
01:09:48.000Currently live in a three-bedroom, two-bath for $180K through via loan since 2020. Considering renting out to active duty and getting a place in Savannah with a via loan and house hack.
01:10:00.000Thanks, Evan F. We covered it earlier, but Ryan, you want to do a quick run-through of how to get started in wholesaling?
01:10:06.000Yeah, I mean, you guys talked about it, right?
01:10:07.000I think you got to get a mentor, somebody who's done it, just to help you with the contracts, make sure you know what you're doing, get you situated with figuring out how you're going to talk to sellers.
01:10:20.000Wholesaling is simple as far as the mechanics of it.
01:11:29.000Never made anything close to being an agent that I made as an investor.
01:11:33.000One of my businesses was I built a real estate brokerage with 200 agents underneath me.
01:11:42.000I've had the business from every standpoint you can imagine.
01:11:46.000As an agent to then having a brokerage with 200 agents paying me a cut of all their deals.
01:11:53.000Dude, It's just, if you're going to go and put the work in, figure out how to wholesale.
01:11:58.000Because all your money's in finding deals.
01:12:01.000If you find deals, you will always have buyers.
01:12:04.000The problem with agents is, not only do they not know how to find deals, but instead, they're just constantly trying to go find people that want to buy a house, that want to list a house or whatever, right?
01:12:16.000And then they're always getting nickel and dimed for their commission.
01:12:21.000And it's like, it's always a race to the bottom.
01:12:24.000And it's like, and most agents I know, they're not actually wealthy because they never buy the properties.
01:12:31.000They just always, you know, yeah, they're just always doing commissions.
01:12:34.000So, you know, I really don't know that many wealthy agents, but I know lots of wealthy investors and people who started out wholesaling, who eventually did buy and hold and, you know, bought apartments later and, you know, all that stuff.
01:15:12.000The idea that everyone was sold, man, like 20, 30 years ago with Rich Dad, Poor Dad and all this stuff of like, hey, let's create passive income through rental properties.
01:15:23.000I don't think that really exists that much today.
01:15:26.000I think it was true 20 years ago, 15 years ago, right?
01:15:30.000When those properties in Vegas were $100,000, you know, they cash flowed really well.
01:15:34.000I mean, that same property today in Vegas is worth 500 grand.
01:15:58.000But the real benefit of owning rentals is the appreciation and the tax write-offs.
01:16:03.000If you buy in the right areas, they are going to appreciate a ton, and you're going to get a tax write-off today.
01:16:10.000That is far more valuable than the cash flow.
01:16:16.000So if you gave me as like, oh, this property can cash flow $200 a month, $300 a month, For me, I would rather take a property that doesn't cash flow anything, but it's in a baller area that I know is going to appreciate a ton in the long haul.
01:16:33.000I mean, the thing is, right, when you have a portfolio that big, then you can afford to break even or even, in some cases, even to go negative on some properties because your other houses are kind of subsidizing that need for cash flow.
01:16:57.000But by the way, this is why I'm a huge fan of wholesaling, because it's really hard to find cash flow today with interest rates and prices and all this stuff.
01:17:12.000That's actually what the workshop is called.
01:17:14.000And my belief is that if you really want to make cash flow, the best way to make cash flow, and you guys know this too, is building a business.
01:17:22.000A business will make you way more cash flow than anything else.
01:17:39.000And the cool thing about a wholesale business, we've been talking about it for a while, but it's like, You can hire other people to do it for you.
01:17:46.000You can hire salespeople and they find the deals, right?
01:17:49.000You just get your marketing in check, you get them leads, teach them how to sell, and then boom, you can make cash flow.
01:17:55.000And it's like, if you were to ask me, man, how do you make a lot of people want to make 10k a month?
01:17:59.000And it's like, if you were to ask me, how could you make 10k a month, you know, somewhat passively?
01:18:05.000Get a wholesale business, hire one salesperson, and if he can get one deal a month, you're at 10k a month cash flow, passively.
01:18:13.000That's way easier than trying to go get 20 rentals to get you 10k a month.
01:18:50.000So, I mean, nine hours of training on how to find deals, how to find buyers, how to do the contracts, how to run your numbers, make sure everything works, and really build a wholesaling business from scratch within three days.
01:19:04.000And that's really good for a lot of you guys that might not necessarily have the capital to go in as an investor or put a down payment on a house.
01:19:10.000This is your way that you can get that capital and then eventually use that money to get your first house.
01:19:16.000And the beginning of it, it's virtual.
01:19:17.000So you could be home taking notes, studying it.
01:20:34.000Last thing I want to say before we switch on over to the Zoom call, which we're opening it up for you guys right now on Castle Club, and Premium guys are going to be able to ask questions.
01:20:41.000Castle Club Ninjas, you guys will be in there as well listening in.
01:20:46.000Obviously, we just came off the—and we talked about this a little bit during our interview—we just came off of the 2024 election.
01:20:55.000I know you had kind of alluded to this a bit, saying you think one of the things that's going to happen is Trump's going to come in at lower rates.
01:21:01.000Any other things that you think are going to occur during this term as far as real estate goes that might influence the market?
01:22:39.000And then either just get another one or 1031 into a new property.
01:22:43.000Because what happens is if I get a really good deal and I feel like I've kind of maxed out that deal, I mean, I could just keep holding it and...
01:22:53.000It's probably not going to keep going up that much from there.
01:22:56.000But if I sell it and I get into a new deal, which basically has a fresh start and I'm able to add value again, I can now multiply the money better.
01:23:05.000If you just look at big hedge funds and stuff, they do the same thing.
01:23:08.000They're not holding properties for 20 years.
01:23:11.000They're turning and burning properties, getting what they believe is the best IRR, and then going into the next deal.
01:23:19.000Also, too, in a lot of cases, they can't even hold them for more than 5 to 10 years just due to having to get the investors their capital back.
01:25:28.000I'm sure they probably do it informally where they just transfer the money.
01:25:31.000But I think we're going to get within the next 10 years or so where you're going to have in the contract this amount of Bitcoin will be transferred on this day for this amount or whatever it may be.
01:25:40.000Yeah, when I had my NFT, we actually did something similar.
01:25:43.000I had an Airbnb here in Vegas that I specifically did for that.
01:25:47.000It was a million-dollar-plus Airbnb, and people could use coins to stay in the Airbnb.
01:25:56.000Let me ask you this before, and I just want to get the guys much value here, and then we're going to go to the questions with the Chaos Club guys.
01:26:03.000Airbnb, Ryan, this is something also that isn't really my thing.
01:27:14.000Here in Miami, it's fairly hard to Airbnb your condo.
01:27:18.000If you try to do it, you can get in some serious trouble for doing it because a lot of buildings don't want it for obvious reasons.
01:27:24.000Also, owners complain to the city and the state because they feel like the gas for the Airbnb are damaging the property and the value of it.
01:27:33.000So they complain to the city and say, hey, listen, can we get these people out of here?
01:28:03.000Like, the stronger the hotel industry is in your city, the stronger they're going to get Airbnb the fuck out of there.
01:28:08.000So that makes sense, that Vegas, because, like, the entire strip is all the legacy hotels, so they're going to make sure Airbnb is, like, get the fuck out of here.
01:29:52.000Obviously, the guy knows what he's talking about.
01:29:54.000There's a reason why he's on the show.
01:29:56.000There's a reason why I wanted to bring him on live as well so you guys can ask these questions because he has an expertise and stuff that me and Fresh don't.
01:30:02.000So we want to fill that gap for you guys in the real estate game.
01:30:04.000So guys, we're going to end the stream here.