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