Orange County Flipping Family: Kayla Morris' 1st Deal Breakdown 🔥

Hey, you guys, what's up? Welcome back to the podcast, The New and Experienced Investor Podcast, the podcast that connects real estate investors from all walks of life. I'm one of your hosts. I'm Alex Barnett. I'm the new guy.

And I'm Joe Homs. I'm the experienced guy, or the old guy, like they like to call me around here.

The cruiser.

Oh, that's right. I'm going on a cruise Sunday. Yeah. Yes.

He does that all the time now.

Yes.

When you become experienced, you just only eat at Sizzler and go on cruises.

Nice.

So I'm trying to add that into my like regular routine now. Mm-hmm. Just to gain some more experience. But yeah, we're super stoked today. We're talking about flipping in Orange County. This is like top of the line. This is like Netflix series stuff, like ABC Dateline stuff. And We're gonna hear all about it. Um, we have Kayla Morris here in studio, super excited. Before we jump into that, let's remind everybody about the meetup that we have coming up.

Not this Monday.

Not this Monday.

But next Monday.

That's right.

I'll be back. Not this Sunday, I'm leaving, but the Sunday after I'll be back. So I'll be back for the meetup.

He'll be back.

Um, we have, uh, Burton from PropStream is gonna do a presentation on PropStream and He's done it before. He's an amazing, amazing guy. He gives a lot of information about the PropStream platform. So it's on Meetup, it's at Hangar 24, and we're not predicting any rain.

No, no, we're out of the—

So we're good.

Woods now.

Yeah, so hope to see everybody there.

Yeah, yeah, you guys, PropStream is what we use to pull all our lists and to reach out to homeowners. That way you can find Super cool flips like the one that Kayla's doing right now. But let's bring her in. Kayla, thank you so much for joining us. Super excited to have you here.

Yeah, I'm happy to be here.

Cool.

Well, why don't you introduce every introduce yourself to everybody? Let people know kind of what you were doing before real estate and how you got into real estate.

Okay. So my husband and I are high school sweethearts from. Idaho.

Love it.

We moved here 3 years ago for solar, but we've always had this dream of flipping houses. We watched Flipping 101 and Flip or Flop, like all those shows. And so, yeah, we started learning how to find houses and generate leads. And after like 3 or 4 months, we just decided to pull the trigger on one of them and Make it happen. So here we are.

That is amazing. 3 or 4 months.

3 or 4 months.

Some people, it takes some people years to get out of just thinking about it.

Yeah.

Yeah, it was, it was kind of like, are we going to do this or not? Because we had already raised some private money to invest in this stuff. So we were like, we're wasting time. Let's get the ball rolling.

Yeah, exactly.

Yeah. Very decisive.

Very decisive and, and for good reason because like you, you told us before, it's, you know, we're going on a year now and you're in the last 3 weeks, but like that time has to go by, you know, it takes a little while. So yeah, good thing you started.

There's a reason it's been a year, which she's gonna tell us about. Yeah, that's the exciting part.

That is the exciting part. I know we're gonna get into that.

This is your first project?

First ever project.

Oh my gosh.

Yes.

Yep.

Oh my gosh.

And yeah, it's, it's a real, it's a real deal here. Like, um, big, big risk, big reward. Like, just like the show says.

Yeah, yeah, yeah, absolutely.

Heck yeah. Okay, well, you mentioned you guys started finding leads. Let's dive into it. Like, let's start breaking this deal down. Where did you find this one?

So we had, um, actually hired some virtual assistants to like pull lists from PropertyRadar, but we weren't like getting a ton of great results from that. And so we went to this open house, met a local realtor, and we actually— he actually sent us this property in Del Mar. And so we were like, let's just put an offer in, see what happens. And we were a second offer. The first offer, we think they were trying to wholesale it or something and it fell through. And so we ended up with the property and we went into escrow and We have this burnt-down house that we just bought for $820,000.

Gosh.

So it was, it was, it was through an agent, but it was not on the MLS.

It did accidentally go live on the MLS for like 20 minutes. And this agent happened to see it.

Oh.

And got the number because then he couldn't find it. And he was like, what the heck? Called them and then called us and was like, do you guys want to put an offer on this house?

Way to go, agent.

It was kind of luck.

Yeah, sounds like it because right place at the right time. Once properties go on the MLS, it just absolutely goes crazy.

Yeah.

Yeah.

So you had kind of locked it up before it got into traction.

Offers. Yeah.

Yeah. Yeah. Awesome. Okay. So like, here we are 3 months into wanting to flip property and you buy the ugliest house The ugliest distressed house in the neighborhood. What are you thinking?

Oh, we weren't. I mean, I don't know if we were. Everyone, all of our family members were like, are you sure you want to do this? Like, this is a huge risk. Like, everyone's worried about us. And, um, I don't know. I don't know if it was just being naive or whatever, but we were like, we're gonna figure it out one way or another. And why not? Learn all the lessons we need to learn, I guess. Fast-track it, I guess. I don't know.

Yeah. So what was, you know, now you obviously, you went into escrow, you closed escrow, now you have a house. What does that process on this project look like? What would you end up doing?

Yeah, so we got a hard money loan with a construction budget. But our budget was off. So like midway through the project, well, I guess back up, we're waiting for permits to get approved, right? We have to get a demo permit. We have to get all of these different permits. And the city of Costa Mesa is like so backed up. And we learned the hard way that unless you go in there in person and you're hounding them, you will not get your permit. Like you will wait probably years. If you don't go in and hound them, and so it was like we were waiting, waiting, waiting, and then Wes finally decided to start going in there every day for like three or four weeks, and we finally got it approved after five months of waiting. So we hadn't done a single thing besides demo for five months.

Okay.

Squeaky wheel gets the grease.

Yeah.

Yeah. That's good. Yeah. I'm glad that you realize that. You know, I'm sorry that it took so long, but. I'm glad that you realized this. So 5 months into the project, you're waiting for permits. You finally get your permit. Um, you know, beforehand you had to hire an architect, correct?

Oh, an engineer.

Engineer.

Yeah.

Okay. To draw up the, you know, your vision, your plans.

Yep. That's when we vaulted the ceiling and raised the ceiling height and things like that.

Okay. And was that at the engineer's suggestion? As to what to do with that project? Or did you have a vision, you and your husband have a vision that said, this is what we want, can you do that?

I don't think so. Like, I think we just kind of went with it as we went. Like, um, not a huge vision other than we just want to make money.

Okay.

Yeah, that's a good vision.

Um, we knew that it was burnt. We were at first, we were gonna like, well, let's save the studs. We can save the studs. And then anyway, they weren't savable. So then we were back down to the ground and we just basically saved the floor plan. We just opened up the kitchen and the living room, raised the ceiling height, added a few windows. And there's still things that we're like, oh, we should have done that now. Like we're still learning things. Like things are coming together and we're like, oh, that was a mistake.

Yeah.

But it is what it is. It's still gonna sell.

Was it, was it a rehab, uh, permit that you ended up getting, or was it an actual ground-up permit?

A rehab permit.

Okay.

Yeah.

And do you know the reason that you got that?

You know, that's interesting.

I—

so where Wes does most of this, I don't know the full how the story ended, but I do know that during the process they were like, well, you need to have 2 walls.

Okay.

That are existing. Like, you can't tell— you can tear everything down except 2 walls to get a rehab.

Okay, perfect.

So I don't, I don't know really what happened there.

Yeah, well, it's, it's cost, you know. It's less expensive to do a rehab permit than a ground-up permit.

Yeah.

Uh, and that's why you do that. Yeah. So honestly, I like— it's awesome that he figured it out along the way, or somebody was like helping you along the way figure things out like that. So that's great.

Yeah. Yeah. He did like a few months of coaching before that, but during the project we had no coach. Like we just, yeah, he figured it out as we went. We're still learning.

Yeah. You're still figuring it out.

Yeah.

There's still a lot we don't know.

And you mentioned just the demo part was like $45 grand.

Yeah.

So I mean, what did that entail? You were going to try and keep the studs, but I'm assuming they left everything. Like, what was some of the weird stuff that was like there that they had?

Yeah, some of the weird stuff.

Yeah.

So they had like an RV there. They had a couple trucks and they were like the old, like collectible trucks. But they, I mean, I don't know. I don't know. What are we going to do with those? We don't know what to do.

We're not. Yeah.

You're there to build a house. You're not there to like, what's the antique roadshow or whatever? Picking it out and restoring it.

That's where the money is. Yeah. That's where the money is.

Honestly, selling a house in Costa Mesa. So we met our, we met our contractor Humberto.

Okay.

Humberto has this hookup of like this person who collects trucks.

Yes, of course.

So I think he did come and like take this bus.

He's like, I can take it for you.

Humberto made some money on that deal. Yeah, for sure.

He made like $20 grand off one truck.

Do you have, uh, can you pull up the photo of the, the rehab, um, from the beginning? Maybe we can kind of go through those photos.

Yeah.

Because there's also some stories here as well. Oh yeah, there you go.

That just looks scary. I didn't know Costa Mesa even looked like that, to be honest.

Yeah.

That is freaky.

I mean, it definitely had a reputation. We're finding out that I think they were dealing drugs and they were breeding puppies.

Okay.

Goes hand in hand.

What kind of puppies?

I don't know.

Pit bulls?

Rottweilers.

Rottweilers.

Rottweilers.

Yeah.

Um, and then they had this like whole— the backyard was just set up to like paint motorcycles. I think that's what he did.

Yeah.

Just to repaint Harleys, because there was like 7 Harleys in the backyard that we had to dispose of as well.

So is it that guy inherits the house from his mom? Like, how do you end up— how did those guys end up having a house in Costa Mesa?

Okay. So this is what I know so far.

Yeah, dish.

So the homeowner was actually the girlfriend, but the girlfriend, her ex-husband actually inherited the house.

There it is.

From— so then the ex-husband ended up leaving, and then she's still living in his house. She gets a new boyfriend. This boyfriend is the one who's like doing the YouTube channel with I don't know, I think you call them like Miss Princess Kitty or something.

Okay.

It's like a whole YouTube. It's like, I'm pretty sure it's still on there.

Oh yeah, we need to go back in time.

We should.

Miss Princess Kitty, look that up when you can.

Yeah, anyways, he, he then becomes trans, so then he— I don't know, the story goes on.

Well, that's how you get clicks.

Maybe.

Yeah. But then, okay, so yeah, this, this is the mess that you inherited. And then I'm, I'm assuming that the back wasn't any better. Oh, look, we got some more pictures. Awesome.

That's still the front, but I don't know, I don't know if I sent you any of the backyard.

Yeah, but okay, back was like—

It was similar. It was just like that.

And then there's just like a new—

for the 6 Harleys that you have back there that you gave away. Oh my gosh. Wow. If you're a Harley guy, we're sorry. Okay.

Somebody got it.

Umberto. Somebody.

And this is your neighbor?

No, that's the house.

That's part of it. Oh, that's the house. Okay. And it's all like, it's one.

Yep.

Okay. That's the garage.

Yeah.

It's like an L shape.

Gotcha.

Gotcha. Gotcha. It's a pretty big lot. I was out there. It's a pretty big lot. Wow.

Yeah. We actually have Approved ADU plans.

Okay.

When we sell it too.

Cool. Do you keep some of the bricks? No, I'm just kidding.

You could have.

I know that's a joke.

That probably would have been a smart move.

Perfectly good nail right here.

It's like they're good. They're good for, you know, like pavers on the floor and stuff. Yeah. You know, break things up.

Yeah.

Maybe.

You learn everything. I mean, I wouldn't leave them like there anymore.

Right.

I wouldn't do that.

Yeah. You better keep these. That's funny.

Maybe like the kitchen backsplash.

Crazy. So this is one of the trucks. All this had to go.

That's an expensive truck.

All of it ended up going.

So it's $45 grand.

Demo truck. Um, $45 grand to clean up just—

Yeah, it's expensive.

Yep. Wow. And when you get a demo permit Especially to clean something like this up. Does Costa Mesa, because I know other cities do, require you to, um, provide proof of disposal? That, and it's disposed at, at a correct location. Yeah, that they, you know, they can save things and can't Tony Soprano it. You can't Tony Soprano it. Yeah, you don't want to do that.

Yeah, I'm pretty sure we had to go through all of that.

Yeah. Okay. And then they hold back some money. And then once you prove that you did the right thing, they send it back to you. I don't even know if you're at that part yet or not.

Honestly, I just don't know the details. Yeah, it's not okay.

Yeah, that's okay.

That's good. We won't be delegating.

Yeah, yeah. I just kind of want to, you know, let the audience know that that's kind of the procedure that you have to go through.

I think it was similar to that.

Okay, okay.

And so as you're doing this, like, are the neighbors coming out immediately and being like, like, giving you all the backstory?

Yeah. Yeah, the next-door neighbors, they, they were like, are you guys moving into this house? Like, do you know what happened here? Then we got the whole lowdown.

What happened? That's why we're here. What happened?

Well, I think Miss Princess Kitty ended up— I don't know if he died on accident or on purpose, but he's no longer living with us.

Oh, but not at the house.

Not at the house. No, you're right.

He died someplace else.

He was on his Harley.

Mm-hmm.

Out for a ride.

I don't know. That's good. And you know, this is a perfect story as well. Um, I tell, I tell all my clients, my sellers especially, like when I'm selling a house, you need to disclose everything, you know, because the first people that are going to snitch you off are the neighbors.

Yeah.

I, I had, um, a flipper that I was working with. Now understand, he was buying properties at the courthouse steps, so you'd never know any backstory. You're just literally buying it. And I'm doing an open house for him and a neighbor comes over and she's looking in the bedroom and she goes, man, you guys did a really great job. I'm thinking, it's just a bedroom, you know? Are you sure you don't wanna see the kitchen and the bathroom? That's what people look at. She goes, oh no, that's where the guy committed suicide. I go, great, thanks. Now I know, so I have to disclose it.

Oh no.

You know, nobody ever knew that, but.

The one time where ignorance is truly bliss.

Yeah, exactly. So, uh, yeah, so the neighbors told you a lot of stuff that went on in that property.

Yeah.

And I bet you they're like super excited that you're doing this.

Honestly, yeah. Everyone is like, man, we're so happy to see this place get cleaned up. Because after the fire happened, I think it sat there for over a year before anything happened. I think a lot of deals had fallen through on it before we actually closed, but Yeah, yeah.

And it's just kind of crazy that this $825,000.

Yeah, this is Orange County. I know, you know. And that's Costa Mesa.

This is— that's crazy.

Yeah. And in the really nice area of Costa Mesa too. Yeah, there's, there's a nice area.

Oh yeah, oh yeah, there's a nice area.

Yeah, yeah.

No, totally.

And it's a corner lot.

Yep.

I told you it's a big lot. Yeah, very big lot.

Love that. Okay, so after this part, you take it all away, you got a clean slate.

Yep.

You got your plans.

Yep.

And then do you show up and you're like, now what? Or do you guys know the next steps? I mean, I wouldn't even know what to do.

Humberto just got to work. Like, honestly, that's all.

Yeah, how— you know, that's very important. How did you find him, Humberto, the contractor? Because There's so many horror stories out there that, you know, the contractor, you hire him and then he's gone 2 weeks later and you never see him again.

Yeah.

So was he a referral?

He was a referral from— so to actually close the hard money loan, since we had no experience, then we had to have someone kind of come in as—

I think they—

if he ends like that, I'm not going to say because I don't know for sure. But anyways, they came on with us to get the loan so that we could have their experience on our record to basically close on the loan. Anyway, this person was the one who referred us to Humberto.

Got it.

Yeah.

Okay. Well, that's good.

That's good.

I am so glad you got somebody that's still there, uh, is almost finishing up the project. Because again, you hear all these, uh, you know, stories that You know, they start out and then you never see them again.

Yeah, no, that hasn't been the case. And actually in the middle of the loan, because the way they have the construction budget set up is you do the work and then you request a reimbursement. Well, the reimbursements were like so hard to get and they would only give us like half of what we were asking for because we didn't have this and this and whatever. And so we were like, we're running out of money. Like, We don't have the money in our account to cover the construction costs. That's why we have this construction budget. And so we had to raise private money in the middle of the loan to get through. Anyways, Humberto unfortunately didn't get paid for like 2 weeks. And it's not the end of the world. But he still showed up.

That's good.

That's good. But the 2 weeks is not the end of the world.

I thought you were going to say like a couple months.

So 2 weeks late. Yeah, it was like up. It'd been like a month.

So you raised private money in between? What does private money mean? Does that mean mom and dad or what?

No, it's an investor that we found.

Okay. Yeah.

An investor we found and raised money.

Actually private money?

Mm-hmm.

Oh, wow. It's usually mom and dad. I know.

Kicking butt.

Yeah. Mom and dad have definitely helped, but it's not— it's very small. insignificant compared to— we basically had to raise an extra— well, we actually raised an extra $300,000.

Wow.

Because we were like, screw Center Street. We're just going to have him replace our line of credit and we'll just use him. So then we negotiated terms and now he reimburses us without all of the extra paperwork and the headache of getting all that done.

That's good.

3 months into this.

This is like high level.

It is. Absolutely.

It's not for the faint of heart. I would say, I mean, no experience, sleepless nights. Like, oh yeah, it's a miracle. I mean, we found church.

We're almost at the end. Hold on. Hold on. We're almost there. What else we got?

That's cool.

Wow. Look at that.

So that's just brand spanking new.

Yep.

So Which 2 walls technically remained?

I don't know technically the answer.

Okay.

Just 2 of them. 2 of them.

I guess.

Remained.

Okay.

Got it.

Oh, you know what?

I bet it's the garage. I bet it's the garage that remained.

That could be.

That makes sense.

Yeah. That could be.

That's cool. Yep.

Wow.

Oh my God, this is before. This is the fire damage. What caused the fire? Do you know?

An explosion.

That's all we know.

It was actually an explosion.

It's just explosion. However you get explosions.

That's how the neighbors, like, they know this house because it was terrifying for everyone in the neighborhood.

It would— they rev up the motorcycle too much or something?

I have no idea. No one really knows.

That's how my mind's going.

But you know, we actually knew someone who was like, I know the fireman on this project. Like, I have his number.

I could find out.

Yeah, I should call him and see what—

wait till after. Don't get any secrets.

Wait till you close.

Yeah, you don't need to know.

This is true. What you don't know, you don't have to disclose. So it looks like it engulfed the whole place.

I mean, yeah, you know, this is so—

and this is like what you're gonna try and keep, right?

Like, the studs actually seemed decent.

Like, we're like, oh, Yeah, but that didn't work.

But no, we didn't.

Yeah, because you had to redesign the place. Yeah, yeah, yeah, yep. Oh my gosh, this door here, that, that wasn't installed by Boeing, was it?

Let me suck that.

Okay, I just want to make sure.

Wow, this would be like—

kept the same slab, so The footprint is still the same. You just had the open beam ceiling put in.

Yep, we just vaulted the living room and raised the ceiling height.

Okay. Okay.

Good call. Yeah.

Next. Yeah. Oh, okay.

There you go.

Yeah. So we're getting close here. Mm-hmm.

Look at that.

Wow.

That didn't take that long.

Look at that.

No, I'm just kidding. This is how they do it on HGTV. It's like, just do the transition and you're like, and there you go.

Piece of cake.

Piece of cake. It was all so simple. Nice.

So where, where are you in this remodel here? I mean, Yeah, you picking the backsplash, flooring?

Actually, Wes picked the backsplash. Okay, like he has an opinion on things.

Yeah, that's nice.

Yeah, that's good.

I kinda—

when I started flipping with, uh, my son-in-law, my daughter about 10 years ago, I had been flipping for— I've been flipping for 43 years, but I was teaching them and we were buying properties and there was like Uh, a green carpet, you know, shag carpet or whatever. We were looking at a lot of properties in the '70s, and I said, that's awesome, we don't need to even to replace this carpet, we could just like clean it or whatever. And my, my daughter said, you're never ever going to pick anything for any of our flips. And that's the last time I picked anything, you know. So I understand, so that your husband can do this. That's kudos to him. Yeah, I mean, that's, that's awesome.

I think he needs me more than he thinks he does, but yeah.

Well, you realize that the longer you get married, you know, you're married. Yeah, you realize that that's—

Yeah, I was—

The truth.

Yeah, I was actually gonna go with like black kitchen cabinets and—

Oh, um, okay. Nice.

Yeah, it's gonna be more contrast than that, but—

I'm glad you did this. This is Orange County. This is what's in style right now. This is great. Is, is, uh, this quartz and it's, it's overhanging on both sides?

Yep, waterfall quartz.

Yes.

Then that like beadboard idea, that was Wes.

Wow. Yeah, I know. Wow, nice.

Very good.

He's been watching, you know.

He has.

He does.

He's—

Videos and stuff.

He's into it.

Yeah.

You know, this— and this is what I would call a cookie-cutter remodel because all my remodels, all my flips, they look the same. They're not any different. Maybe every once in a while do a different backsplash, but shaker cabinets, stuff like that.

And I think you're exactly right. Like when you're investing, the design doesn't have to be perfect.

No.

People will make it their own once they move in. Yeah.

And your next project, uh, because I'm hoping there's gonna be other projects, but, you know, your next project, you're hoping to get done in like 3 months and not a year. And so actually, just, just make it look like this, but do 3 months instead of a year.

Honestly, the project that we're looking at for next, um, Wes just showed me. It's like this piece of property in San Clemente that already has a house Like blueprints on it, but the house is like in the $5 to $6 million range.

Oh wow.

So that's like a huge project.

I gotta meet Wes. This guy, I have to meet him. Wow, you should have brought him.

Freaking roller coaster.

Wow, $5 to $6 million range.

He's like, $1 million, hold my beer.

Yeah, you know, it's like for this first product, we're like trying to prove ourselves to all these like, yeah, people that have money. Like, it's about who you know.

Yeah, I'm actually going to look at a property tomorrow in Nellie Gale. You know where Nellie Gale is? Um, off of Oso and the freeway. It is very exclusive area. Yeah, and it's, it's a fix. It's a flipper, you know, probably, you know, at the end of the day, $1.6 million or something in there, and You could sell it for $2.6, $2.7, around there.

Yeah, that's so awesome.

I'll, I'll keep you posted.

Yeah.

Yeah, actually, your, your friend Stephanie found it and she's going to show it to a client. But if they don't want it, if you guys are playing in that price range, just ask her about it.

Yeah, I think, I mean, I would like to pump the brakes a little bit But that's not how Wes operates.

Yeah. So go Wes.

Yeah, go Wes.

Nice. Okay, keep going.

Nice.

Yeah, that's— that looks really good.

That's pretty much all I got.

Heck yeah.

Okay.

I think I got one.

Wow.

My favorite picture.

That just—

drag it over here.

So this next one is like a ground up too, or is it? Oh, there we go.

That's cute. That's Wes.

Love that.

There's Wes.

Yeah, there's Wes.

And Myla and Charlotte.

Cute. Okay.

Baby number 3 on the way.

Yeah.

Congrats. Boy, girl?

We don't know. We're gonna leave it a surprise.

Really?

Yeah.

Cool.

Wow.

All my kids were surprised, but then you couldn't test back then. So it was normal to be a surprise.

Yeah, it's against the grain for sure.

Yeah. Is Wes hoping for a boy?

I think we all are, but we're all bracing ourselves in case it's a girl.

Yeah, that's great. That's so cool.

That is awesome.

So you guys, are you documenting this the whole, the whole way?

And yeah, trying, trying to. I'm sure that's a learning process too.

For sure.

Yeah, yeah, just the documenting and—

yeah. Well, it's interesting and people love it, you know. It's just like the shows, they love the before and the after and the reveal and all that stuff and everything you guys had to go through. And especially as a family, like, that's, that's great.

Yeah, yeah, raising kids alone is a roller coaster, and then you add flipping a house like Del Mar for your first project.

Yeah, really. So what's this? What is this next one? Is it off market or it's on market?

No, it's on the market. It's a piece of property that's for sale, but it's listed as an investment opportunity.

Okay.

And so the plans have already been approved and like the blueprints are already there for you.

Gotcha. So you just got to get the cash.

Yeah.

Call it and bear down. Is it a teardown like this one?

No, it's a bare piece of property, bare ground.

Oh, it's bare ground.

Yeah, it should be a new construction loan.

Okay, well good that it's not sliding down a hill or anything like that.

It is on a hill, but everyone— all the houses are on a hill. It has houses on both sides.

Okay, so no, no foundation issues with the neighbors and stuff, or you haven't even gone that far?

I haven't even gone that far yet.

Okay, because San Clemente is famous for that.

Yeah, that's true. Yeah, I have heard that.

Yes. Is it on the hillside above the DMV? Do you know where the DMV is?

No.

No. Okay. That's right. You're from Iowa?

Idaho.

Oh, Idaho.

How dare you.

That's where everybody doesn't want Californians to go to. You know, it's like, you're from California.

That's where all the Californians went.

Yeah. Why don't you go back?

Yeah.

Yeah.

Yeah.

Californians like watch 2 seasons of Yellowstone and all move to Idaho.

Yeah.

Am I right?

Like, so what brought you down here?

Solar.

Solar?

Yeah, because, um, Idaho has like the cheapest power in the nation. Like, really, when you come down here, then you're like, your power bill can be more than your car payment.

Yeah.

And so, yeah, it was a much better move for us. And then, I don't know, we feel like we fit in better here than small town Idaho.

You have relatives here? No, no, they're all back in—

all of our family's in Idaho.

Idaho.

Wow.

Yep.

Okay. Wow, lots of changes in your life. Wow.

Yeah.

It's like 3 months, we're gonna flip houses.

Yeah.

Okay, let's go, let's do it. I know. Nice.

Wow, love that. Okay, let's get into, um, you know, you've learned a lot, you've just gained like So much experience. I guess, what are some of your biggest takeaways, do you think?

Yeah, I think if you have a dream, just try. Don't be afraid to fail. I think that's been the thing. Wes and I have failed a lot. I don't know. I feel like we start over every 3 years and our financial goals But I think we're young too at the same time. Wes is turning 30 this year. I'm turning 29.

Oh my God. You're so old.

Oh geez.

30 years old.

Wow. Hurry up.

So we're still, I mean, I feel like we're ahead of the game in the risk-taking game.

Right.

You are. Eventually it's going to pay off.

It will.

Yeah.

Absolutely.

Yes. We're young enough to rebuild, I think. But it's not for the faint of heart. Like I said before, It takes a toll on— it takes a toll on your marriage. It takes a toll on you as an individual. I don't know. It's hard stuff.

It's worth it. It will be worth it at the end of the day.

That's what we keep telling ourselves.

It will be. It will be. I guarantee it'll be worth it.

So what's one of the things that kept you up one of the nights? Like you had to make a decision or it's like you ran out of money and something was owed. You had to pay the contractor. And you don't have it.

Yeah.

Before we found this private money investor in the middle of the project, then it was like, okay, well, we have 30 days before we're gonna go, like, we're gonna miss payments. So it was like, um, yeah, it was just so scary. That's when, that's when we had to ask my mom and dad for money. And luckily my parents are kind of entrepreneurs and risk takers and all that stuff. So they understood and bailed us out for 2 months. And then we found the investor and yeah, everything was okay. Things are still tight though.

You got to love mom and dad.

Yeah.

Honestly, it's a game changer to have mom and dad like that. It's a game changer.

That's nice.

I mean, if we wouldn't have had them, I don't know, we might've had to sell Del Mar. Or clothes or, I don't know.

Yeah.

Wow. That's what moms and dads are for.

That's it.

Yeah, exactly.

Shout out to mom and dad.

Shout out.

Yeah, that's cool. So how, so finding a private money lender in the middle of a project, what, what do you do? How do you do that? What are the steps?

Yeah, Wes just reached, I mean, luckily in the solar world, um, there's quite a bit of money. So that's where he just started reaching out to everyone he knew and asked them who they knew and if there was anyone that they could connect him to. And we ended up actually paying like a finder's fee. Um, like he knew of someone who knew of someone, but he wasn't willing to connect him without a fee.

Of course.

So it was worth the fee though.

Yeah.

Yeah.

And then you mentioned that you basically used his line of credit or used him as a line of credit, or did you use— did he have a line of credit, like a business line of credit that he—

Yeah, no, he has his own money that he was able to write the terms for so we could use as a line of credit instead of using our hard money loan.

Gotcha.

Line of credit.

And did he record a deed on your property? As collateral?

Honestly, I don't know.

Okay. I'm sure he did. Yeah. I mean, why else would he give you— you said $300,000? Yeah. Why, why would he give you $300,000? You know, I mean, you're a nice person, don't get me wrong.

Right.

But, you know, you have to kind of collateralize that. So, yeah, a deed on the property would do that.

Yeah.

Yeah. Second position.

Yeah. Yeah, absolutely.

Yeah.

Okay, so wow, nice. All right, well, uh, let's, let's get into some numbers. So we got a purchase price, $825,000. It was $840,000 originally. Then when you saw that it was going to be a lot more haul out, got them down to $820,000. That's a win right there.

It was.

You can negotiate. Like, people don't realize you can negotiate on deep into the Yeah. So you were about to close basically, and you were like, you're just gonna leave 7 Harleys and these dogs here?

The trucks. Don't forget the trucks.

And the trucks.

Don't forget the trucks.

And they had been sitting for so long, like, I think they were really desperate.

Yeah.

Yeah.

So the last second you went back for a price drop and they were into it.

Yep.

Yep.

So we closed 3.

Was this price drop your idea or your agent's idea?

Actually, it was Wes's coach.

Okay. Yeah.

Yeah. So shout out to Marco because he was like, negotiate this down. That's a lot of money to clean up. And so we did and we didn't know it was going to work.

So did you go for $800,000 and then they came up to $820,000 or did you just go to $820,000 and they were like, okay, that's fine?

I don't know. Wes did that.

Gotcha. No worries.

Talk to Wes.

Got to talk to Wes.

Yeah.

Yeah.

He'd love to be on here.

Yeah.

Yeah. He's fun to talk to.

Cool.

Okay.

So yeah, we closed. So we got a hard money loan for $1,040,000 at 11% with— we had to have $252 for the down payment, loan fees, and closing costs. So But yeah, I think after all of the overages, our original $227,000 rehab budget is going to end at like $350,000 to $360,000. So you're $100,000 over, which we love Humberto, but the estimates that we have were very vague. Like that's some of the fine-tuning that we're going to have to do on the investing side so we can really keep track of things and know the cost of things. But that's all learning stuff. There's no way going into it that we could have known all that. So yeah, so yeah, if we sell for $1.7 million, then a profit of $212,000.

Sounds pretty good.

Nice. After, after paying out all the investors, hard money investors, everything. Wow, that's good.

Really good.

That's very good. Yes. Yeah. And it actually will be long-term capital gains because you've Well, we'll have had it over a year, correct?

Yes.

Okay, which is really important. Okay, that's the next thing you need to learn is taxes. Yeah, how to keep it. Yeah, that's, that's a big thing. Yeah, so that you've had it over a year, it's long-term capital gains, which is way less that you're going to pay. Is it, uh, how's the title?

2 years? I thought it was 2 years.

No, 1. 1.

Okay, that's new information to me.

Yeah.

Maybe Wes knows about that.

How is the property titled? In your name? In your LLC?

LLC.

Thank you. Okay. Because you can get rid of the 3.5% upfront to the state. You don't have to pay that because it's in an LLC. So when you get to that point, we need to sit down so I can walk you through all that stuff to make sure that you keep as much money as you can. Yeah. Okay.

Yeah, sounds great.

Do you have any, um, do you have any 401s or anything like that? Oh yeah, we, we need a discussion. Yes. Don't you think?

I think so.

Yeah, we need a discussion.

Yeah, we just got all that stuff, so that's like—

So yeah, no, if not, then, you know, Uncle Sam's gonna take it.

Yeah.

And they're happy to take it.

Yep.

I'm not happy to give it to them. Yeah, and there's ways you can not give it to them legally, so why not, you know? So yeah, wow. And I'm hoping— I mean, I looked at the property. I told you I was going to call my cousin who's an appraiser. Yeah, and he told me the same thing about $1.7, $1.8, somewhere around there.

Amazing.

And I think—

I'm glad to hear that.

I think, um, you know, once you finish it, um, and we're going literally right into the hot market season for California, I think you'll get more than $1.7 million. I really hope so because I think people are just going to go crazy for it. They're going to say, wow, we hope, we hope, we want this.

We're really excited.

Yeah.

So we'll see. It'll all be worth it.

It will. Absolutely. And then we're going to go buy something in San Clemente for $4 million.

It's just land. It's just like grass.

Just like, yeah. But that's easier than a burnt-down firehouse.

Yeah, of course. You don't have to do the first part. You just do the other part.

I think the plans for that house are like 6,000 square feet.

So, oh, it's insane.

Wow. It's a whole nother realm.

Yeah. Can Umberto handle that type of job?

Yeah, I don't, I don't know. That's a good question.

Yeah, that's so much wood.

Is he just—

I mean, I don't know how much framing would be differently.

No, no, the framing part. But you know, you have to get somebody to do the the footing and the slabs and all that. That's that's a different kind of a different skill.

Yeah.

I mean, I'm sure he could find somebody.

Yeah.

You know.

Yeah. But honestly, he's he's pulled through on a lot of things. He's like really knowledgeable.

Good.

He's like sixty, sixty-five or something.

Is that old?

No.

Good answer. It's experienced.

Good answer.

He's very experienced.

Yeah, good answer. Yeah, I like that.

Good answer. Yep, that's cool. So I mean, how— so you just go there like— so go— sorry, no, I'm just like going from the birdhouse and then you just, you know, go to the lot and you're like, are we gonna do 6,000 square feet?

Why not?

I don't know.

What you don't know, Wes, I don't. This is a good guy. He's—

no, I'm not saying—

I'm just putting one in front of the other, you know, moving forward.

Like she said, me talking her into that would be like impossible.

No, it would not be. Producer, we're looking at you. There's no camera on you. We're looking at you.

I think I need more experience first.

Yeah, see, you would always be like, I'm not ready, I'm not ready.

Like, yeah, we've been flipping together for like 3 years, you know.

Yeah, like you're ready to move on to the next You know, it's interesting in marriage because you don't want to kill your husband's dreams.

No.

And no, our dreams can get a little wacky though.

But he's like— see, I would describe him— I don't know if—

careful, careful.

I, I would describe him like a normal male.

It's like— good.

Yes, being a dog. Okay. And she's leashed them up and she pulls the leash back every once in a while, like she did this morning. I heard her. She's like, no, you're not. No, you're not. And it's like, I'm going like this every time she says it, you know? Because I've experienced it myself, you know?

You triggered.

He's just like the easiest sale for sales guys. So I hear him get on a sales call for some new program and I'm like, get off that call right now.

Yeah. Okay.

You're looking for the next thing.

But do you turn around and do the same thing? Uh, you know, I was talking earlier, my wife went to Costco yesterday and she spent $600 and I go, what the heck? It's just me and you. What do you spend $600 for? And she spent like, what, $500 for this hair dryer or something?

I think it was $600 for the hair dryer.

$600? I mean, do I pull her leash and go like, no, you need $600 to dry your hair?

Joe, it's the Dyson Airwrap.

Come on.

I mean, no, you don't pull the leash.

Really?

No, you can't come here. It's like me designing. I'm out of that league.

The $600 that that hair dryer is gonna bring her.

Yeah.

Would be equivalent to like what? How much enjoyment do you think she gets out of that hair dryer? And how much money would you have to spend to get the same amount of enjoyment?

Wow. Yeah, but she just— Probably significantly more. To the beauty salon or whatever they call it, you know, and spends $200 or $300 there.

Yeah. So she's like, I'll be saving money doing it myself.

Yeah, I hear that too. I saved money. I went to Costco and this is normally like $900, but I bought it for $600. So I saved money. Yeah, you'd have saved money if you didn't buy it. Anyways, we're off topic there again, like I always do.

Yeah, it's working with your loved one. It's fun.

Yeah, it is fun, isn't it?

It's been— it— yeah, it can be fun.

So you said, you said high school sweethearts, or was it before then? How long? How long had you?

I got married at 18.

Okay, but how long were you together before that?

Um, I was a junior.

Okay. So, okay.

Two years.

Wow. 18. That's you now. That's unusual too. Yeah.

You have to grow up together.

Yeah. My kids didn't get married till they're in their 30s. I got married at 22, but that was you know just a couple of years ago.

Right.

Yeah.

That was last year.

It's like.

Yeah, I highly—

I don't know, you and you guys got married just recently. 40. 40.

We don't do things the easy way though. That's just not— obviously not, not our story. Like, no, it's just not the path that we've been taking. But I don't see it changing.

It's fun.

I don't see it changing anytime soon.

Well, you don't know anything else, so it is fun. Yeah, but to you, you're like, sometimes I don't— not sure. But no, it's fun.

Yeah, I think once you have kids, it definitely like, okay. Maybe we shouldn't take the hard way all the time because that alone is pretty hard.

But you will experience that.

Yeah, I know. I better.

Yeah, I better.

Yeah, you will. I'm ready. You just have to talk somebody into it.

I know. Yeah, taking a long time.

She's waiting. I'm gonna push him.

Do it. It's the best thing. Yeah, it's the best thing ever.

That's what I wanted.

There you go.

It's the best thing ever. And I think it just motivates us more. Like, I think Wes wants— I mean, we want to get more into real estate because I think that's the way you really build generational wealth. And without the generation coming after you, like, you don't really have that.

What's it for?

Yeah.

Yeah, absolutely.

Yeah.

Awesome.

Preach, preach. Yeah, I love that. So did the girls like come to the job site?

Yeah, yeah. Myla, she's 5.

Yep.

And she's like, she tells us what she likes and what she doesn't like and what we should do next time. And she'll probably like run the books for us or something.

Yeah.

In the future.

I love that.

That's this generation. That's how they are, the kids.

Yeah.

Like my grand— I have 3 grandkids and they're the same. It's like they have an opinion, you know? They do. It's like we never had an opinion growing up. And my kids, sorry, you don't have an opinion. Your opinion is when you're 18 and there's a door And don't let it hit you in the you-know-what on the way out.

They were— children back then were seen, not heard.

Exactly.

Yeah.

But it's changed. Oh my gosh.

They have rights now.

My grand— oh my gosh, my grandkids come over and it's like, whoo. He was telling my daughter the other day, he goes, um, yeah, Grandma bought me some Legos, but Grandpa helped me put them together because Grandma doesn't know how to do it. You love that.

And you're like, that's one for me.

Okay, there you go. That's good.

He's very observant.

Yeah. Very. He's very observant. They all are. They all are. That's good. That's awesome. So, do we have anybody in the waiting room? Like hundreds of people with questions?

We've got quite a few comments here. So, first of all, our resident viewer, Liz, says, Hi.

Hi, Liz.

Nice. Then Mai says she's going back to the rehab permit. Said it's also for tax purposes if you remove those 2 walls. That's her comment. Yeah. Maybe there's a tax implication there.

Okay.

Maybe. That's under Wes's department. It's not the hat I wear.

All right, then we got John Shefsky. He says, I love Joe's encouragement. You are very encouraging, Joe.

Thank you. I try to be. I mean, I am, I'm always trying to be encouraging. Yeah, why would I be anything but encouraging? You know? Yeah, the more encouraging, the better. Yeah, better the outcome, better the person you'll be at the end of the day.

Yeah.

Yes, that's so true, because I think most people with experience would have said This was a mistake. You shouldn't have bought this house. Yeah.

Like, I would have especially said that it's your decision. You know, obviously you got married at 18. You're an adult. You can make decisions like that.

And like you said, sometimes you fail.

Sometimes you fail. Sometimes, you know, you look at your failures and you move forward. And that's what you have to do in life is move forward.

Yeah.

1.7 is not a failure.

It's not a failure.

That's a win.

No. That's a big win.

That's a win.

Yeah.

So that's a big win. I've never done something like that.

That's what I'm saying. We need to start doing that.

No, I've never done that.

Yeah, let's do that.

That and foundation issues. Like, you know, not now because it's hard to get properties nowadays. Don't you think? It's like really difficult.

Yeah, it was somewhat of a miracle. Yeah, I'm not gonna lie.

Yeah. But before, it was like there were so many out there that I can throw away these, you know, difficult projects.

Like, let me do this in and out, make 300 grand real quick.

Oh, that was nice, wasn't it? Yeah, yeah, that was nice. But, uh, yeah, that— I mean, can you convince her to do a project like that? Yes, I'll do it.

Yeah, Kayla convinced her.

Good job.

You got it, Lauren. Kayla, just remember, just remember, we're gonna need your guys' phone number.

Yeah, he needs you on the project.

Trust me, I'm just like, I pretty much just find the property and then I let Lauren do everything else.

Yeah, I do all the picking out and I'm pretty much wrangling the contractors now.

So yeah, it's a pretty nice setup. I can do the permit stuff. I do do the permit stuff because that's like annoying.

Yeah, the permits seem next level.

You go in there and you got to make friends with the front desk lady.

Yeah, it's normal. It does.

Yeah.

Bring him donuts or something.

Yeah.

Joe really perked up about the donuts.

Donuts work.

Donuts are good.

We have donuts.

Everybody always has donuts. Wes had to really work Sheila.

Yeah, exactly. Of course.

She was giving me updates on, I made some progress with Sheila today. I think she's not as mad at me as she was yesterday.

You're like, Sheila's in a good mood today. I don't know what happened, but nice.

All right, we got a couple more. Chad says, let's Let's go.

Right on.

Let's go.

Yeah. Stephanie chiming in about the Dyson Airwrap.

She says—

I knew. I was like wondering when Stephanie's comment was gonna come and it's—

What is the male equivalent?

One word, Cybertruck.

Oh, that's true. Dang. She's a bitch.

Not even close. Not even close.

That's the lady's Cybertruck.

She says Lorraine won't dry her hair with the Cybertruck.

Oh.

Oh man, I could put her in the back. Yeah, open up the tonneau cover, drive fast, and tell her to stand up. It'll dry it in half the time. Okay, so yeah, she doesn't need it. She doesn't, she doesn't need it.

Go Mach 3.

She does not need it. She got it.

She got it. She needs it. Every woman needs it, Joe. Apparently we're finding out today.

I mean, maybe, maybe I will reward myself.

Yeah, yeah, yeah, yeah. Once it closes.

Sorry, Wes. Sorry I brought the subject up. I'm really sorry.

And that's, that's all our chatters.

So yeah, cool. Thank you guys for joining in. We love, we love having you being interactive, you know, joining us while we're, while we're doing it live. You know, and, uh, breaking down. And you're still, you're still in it right now. Yeah. So this is real time, you know. What, what are the finishing steps here?

We have a bunch of concrete work that we had to— the city's making us redo the sidewalk on one of the corners. And so we have to get—

Public sidewalk?

Yeah.

Really? They're just like, just throw it.

It just like wasn't there. So now we have— now we're responsible for—

okay.

So it's like an additional cost.

That's so cool.

And that's the only problem about pulling permits. It's like everyone's up here, you know?

But no, that's good.

Yeah. Doing it the right way. That's good. Yeah. Doing that. And then what else?

Stage it.

Listing. Staging. Cash it. Listing. Yeah, exactly. Yeah. So yeah, that'll be me listing it. My first property.

What?

Yeah. I got my real estate license a year ago. Haven't used it.

Cool.

Well, you've been busy. It's fine.

Trying to raise kids.

Yeah, raise kids, build a house. Pretty simple stuff. Yep.

So yeah, it'll be, it'll be fun. It'll be exciting. I'm excited.

So are you guys looking for more properties? Like, what's your buy box?

Honestly, I don't know for sure. I don't know if we have a budget really.

Okay.

Only because, I mean, I think Wes is looking at this from a little bit of a different angle because you can make a lot of money if you crowdfund and just operate it. Like if you're the operator, I think you get like 20 to 30% of the profits on that project, which on a $5 to $6 million home, 20% of that is like, $250,000 to $350,000. And if a project takes 1 to 2 years, that's pretty good. So I don't know, there's different angles. There's so many different ways to make money in real estate and where we have the ability to raise large amounts of money, then it kind of opens up some different avenues for us.

But—

Cool.

Nice. Yeah, I'm sure we'll try to do a smaller flip as well. Like, it would be nice to do a flip that we were majority profit on and then maybe do this bigger job in San Clemente or something similar.

Sounds good.

Yeah, because I was gonna say, like, once you get above, you know, $1.5 million, it's like the buyers start kind of dropping off. You get into the $2 million range, buyers start dropping off, but There's plenty of bucks to be had flipping those, especially out here.

Yeah, I mean, if anything, this is the place where— this is like the richest place in America.

You still have the buyer pool once you get into like $3 or $4 million. You still have a buyer pool of, you know, retail buyers.

Yeah, money's just different here.

Yeah, you go back home and you guys are all like fancy, like you turned Into city folk.

Yeah, California changed you.

Yeah.

No, it's true. It's already happened.

You're like, for sure.

It's so true. Actually, Wes and I had just built a house in Idaho before I moved here. And we didn't know this at the time, but the LDS Church had announced they were going to build a temple a block away from that house that we built. So by the time we sold it 2 years later, then the temple was built and we made $200,000 for Idaho terms.

Nice.

Which that house was like, that was like $360,000 for a 5-bedroom, 3-bath house. Like, oh, 3,000 square feet.

Like, that's amazing.

It's just different. Money's just different.

Don't you have a property in Trona? You know, that's—

I just canceled it. I couldn't move it.

You couldn't move it?

They couldn't move it. It's $27 grand for a house in Corona, California. Yeah, where is that exactly?

Exactly. That's true. That's a good spot.

It's like about, uh, like Death Valley area. But yeah, people are— they have a high school out there. It's, it's a whole—

I think if you're heading out to Vegas If you blink, you miss it.

Yeah, it's, it's way out there. It's out there. It's just, you see the roads and those.

I thought you had that guy on the hook.

No, I did, and then I tried to price drop the, the seller and she just—

oh, she went—

she's like, I'm gonna list it, I'm gonna list it for $32,000 and wait to get like an extra 5 grand.

Yeah, I mean, there's awesome— that's a great listing right there.

Is it like where you start? You know, it's where normal people start.

3% of $30,000 Yeah. So like that agent who gets that listing is gonna be jumping up and down.

They can buy a Dyson air wrap.

Oh, that's true. That's true. Yeah, exactly.

Yeah. But the house is, it's a—

Is it a house or a trailer house?

No, it's a house. It's a 4-bedroom house. It's like basically, okay, the city was like built, there's a mine out there. So it was like a mining town.

Oh.

Yeah. And like all the water's like polluted. It's like one of those places. So there's just like, you're really selling it.

Well, you know, cuz we have some people that might wanna buy.

People look a little bit different there.

Exactly.

But you're like, it's kind of really selling it here.

It's interesting. But the guy that, that I talked to, he lives in Ridgecrest, which is like 40 minutes away, like closer to Barstow or whatever.

Okay.

And what he does is he'll buy 'em for 30 grand and then sell 'em basically on seller finance and have somebody bring the 30 grand down payment. And then he's just collecting cash flow. So he's like, I got like 20 of these properties out there and I'm just making like bank.

Mm-hmm.

So it's interesting.

Like she said, there's always a different way to make money in real estate.

I know.

There's so many different things. Yeah.

And this guy told me all about the city and he was like the one buyer I had for it and I sold it, but then the seller didn't wanna sell at that point. But it's his life.

Yeah. But you resurrected another deal that was falling apart yesterday, today.

Yeah. Yeah. So there was another deal where like the lady wanted to speak to her attorney right before the closing. That's never good. That's like my worst fears. She's like, well, I need to talk to my attorney. And I'm like, why? And then I get on the horn with him and he's like, this whole deal doesn't make sense. And it's like, you're doing this and that. That's Trona.

This is Trona.

That's nice, right?

It's beautiful.

You know, the thing is, at that price, you could not build that house.

Exactly.

Yeah, that's crazy.

You couldn't.

You couldn't build Trona. You can't breathe. Like, when you go outside, don't breathe.

But I wonder if you could pick it up and move it. You know, they can move houses.

That looks—

it looks a little fragile.

Yeah, I wouldn't touch this.

You can move it in pieces.

The inspector said the roof was just like laid on top.

Yeah.

Oh my God, metal sheet.

There's a lot of hazards.

Really?

Mhm.

A blue ceiling.

Yep. So yeah, I mean, that's a typical buy for us.

Wow.

You know, not that far, but—

So you own this property?

No, no, I was going to wholesale it. Yeah, yeah, yeah.

You just had it under contract?

I just had it under contract.

Yeah, yeah. I don't know, it was pretty old too. It's a 1918.

Yeah.

Really?

Yeah.

It had like— so it's probably raised foundation.

The old electrical. Yeah, it is.

Electrical. Yeah, they didn't put them on slabs.

Yeah, what's the old electrical tube and wire or whatever? Tube and knob. Yeah, tube and knob. Yeah.

Wow, look at that.

Funky. Yeah.

It's just laid on there. No, the inspector said it's just laid on top. It's not attached.

A lot of houses are just like that.

What about the wind last night? Is it still there?

I don't know.

You didn't go out to Trona?

No, I've never been there.

No.

Oh, come on. You need to take a road trip out there. No, no.

We've been to Needles.

Cost you more than $900 in gas.

Exactly.

Not gonna do it. No, it's okay. Staying out of Trona now.

But thank you.

You learn something new every day. Yeah, thanks for pulling that up.

Nice.

So if anybody wants to buy anything on market, you can get a house for $30 grand out there is my point. Own a piece of California. Thirty grand.

Promised land.

California is not affordable.

Exactly.

It is. Yeah.

I have something for you. Actually, speaking of that, check this out. Where's the title?

America's Hidden Homes. These are the houses your real estate agent doesn't want you to see.

Trona.

Trona.

Yeah. So this article is stating that agents aren't. are steering and intentionally not showing their clients. Yeah, the affordable houses, all the inventory of affordable houses out there.

Yeah, because they want that commission. They're obsessed with these hair products.

Yeah, it's insane.

It's like, think about your client.

An agent does not want a commission, so he's not going to send you all these houses that, you know, are really good deals that, uh, you might be able to put a client No, that's not true. Yeah, that's— there's—

we got mobile homes we're trying to like take down and we're still getting like outbid by, you know, agents and buyers.

Of course. Of course.

Anything out here that's on market is probably overpriced if it's sitting for more than a certain amount of time.

Where's this guy at? I mean, like Chicago or something?

I have to say, I didn't have time to like read the whole article.

Oh, okay.

It was a clickbaity title.

Department of Justice. And you, and you fell for it. What's a good title? It's No One Business: One Disgruntled Agent Commented in a Private Facebook Group.

Yeah, see, but that's the definition of agents. They're all disgruntled.

They're all disgruntled in private Facebook groups.

Yeah, they're all disgruntled.

I know, it's all right. Not the new ones. The new ones are full of life. That's why Joe likes to work with— yeah, new agents.

Yeah, yeah, okay.

They have a glow about them.

Okay, it's just the old ones that—

Oh, they've seen it. Well, they've been put through the wringer. Yeah, no, I, I— she's been an agent on like 4 deals, and like now I have like mad respect for an agent. Before that, I didn't realize. And people just—

Everything that they need to go through. Yeah, yeah, all the hidden stuff that, uh, you know, people don't actually see, right, behind the scenes that are going on.

Yeah.

And I'm, I'm pushing her to, you know, to do these things, and thank you for doing them. I appreciate it.

Yeah, you know, no problem.

Yeah, they're just like thankless, and then, then they're like pissed that they're paying them like, you know, 2.5%. Yeah, because I'll talk to sellers, they want the highest amount, and I'll tell them, well, you should just list it, you know. They're like, I don't want to pay an agent to, you know, just take pictures. I'm like, oh, okay, you don't fully get it.

Yeah, they don't, you know.

So I don't fully get it. I don't know what I'm getting myself into.

Oh no, you'll be great.

If you don't, I'll be wonderful.

Yeah, you're fine.

I'll hold your hand. You're fine. Or Lauren will hold your hand.

Yeah, I know, Joe. Yeah, just do what Joe says.

And your first listing is your own flip in beautiful Costa Mesa.

Yeah, it's gonna go good.

Yeah.

Yes. Hopefully we get like 20 offers and you get overwhelmed. Oh my gosh, Joe, what am I gonna do? Yeah, calm down. Calm down.

Do it for multiple.

We're going on vacation. I'm gonna go on a cruise.

Yeah, there you go.

Nice.

It won't be done by the time I get back, will it?

I don't know. When's your cruise?

I'm leaving Sunday.

No, she said like 2 weeks.

Yeah, I leave Sunday. I'll be gone for a week, so I'll be back.

You'll be back. You'll be here. I need you here.

Okay.

You're not gone.

He takes cruise calls if it need be.

I do. Yeah, I do.

The Wi-Fi permits.

Wi-Fi is getting a little bit better on cruise ships because, uh, Elon has his Starlink. Yeah, stuff. I would think so.

Just put like 20 of them on the side.

I mean, I pay an arm and a leg for it. Oh yeah, you know, as long as it works, it's fine.

Yeah, just bring your own Starlink.

True.

Yeah, pack it in.

That's where it'll go.

Set it up in your room.

One of these days they're gonna have it so it's like this big, like the dish is this big or whatever, your hand size. And yeah, you can pack it in your, you know, suitcase and bring it along. But the dish is like this big.

It's pretty big.

Yeah, it's pretty big.

It's like that.

Yeah, it's pretty big. So yeah, that's not happening.

Okay.

Sorry.

Next time, go with the standard Wi-Fi.

Standard.

How can, uh, people reach out to you if they want to get in on these next projects? Because it sounds like there's a lot of money to be made.

Yeah. Um, you can follow us on Instagram. Our handle is the Flipping Morris Family.

Nice, and I like that.

That's about it.

Okay, cool.

That's all I've got for now.

That's okay.

Yeah, so it starts.

Oh, you gotta like raise the money.

Morris Family.

Yeah, the Flipping Morrises.

The Flipping Morris.

Oh, the Flipping Morris.

Yeah.

What is it again?

The Flipping Morris Family.

Flipping Morris Family. Yeah.

Yep.

On Insta.

Good.

Yeah.

You can post this on your Instagram when we get done.

Yeah, I plan on it.

Okay. Let all those people in Idaho know what you're doing.

Oh yeah.

Oh yeah. She's bougie now.

Okay.

They're gonna see how we've really been ruined.

Yeah.

Cool. All right. That was a lot of fun. Thank you.

Yeah. Thanks for having me.

Thanks for the insights. And I'm inspired now. You know, I hope you guys are too. Um, I'm not sure if we're gonna be here next week because Joe will not be here.

Yeah, you know, unless you wanna have somebody here and you're interviewing by yourself, that's fine with me. All right, you don't need to be here.

Maybe we'll, yeah, get a co-host.

Or I can call in.

Yeah, Joe can call in.

Yeah, cool. I did that once, called in from the cruise ship and—

wow.

Yeah, they put like my head here in the middle.

And it's like hard to have fun without working.

Joe can't do it.

Joe can't like sit and just—

no, that's not me.

Yeah, it's like my favorite vacation is when I have no service and I get Wes all to myself.

Oh, you'll grow out of that.

Nice.

You'll grow out of that. Yeah, that's good. That's Come talk to me after you're married 45 years.

Oh my God.

Yeah, come talk to me. Oh, don't tell me that.

Don't tell me that.

The Dyson is, you know, the highlight of the day. You bought what? Wow. Okay. I told her when I got home, I go, you bought what? And I go, you know, I'm going to have to get a loan to pay for that.

Oh my gosh. Did she tell you?

Does she still think your jokes are funny after all this?

Oh, absolutely.

Yes.

No, absolutely.

Yes, of course.

No. Yeah.

Oh yeah, sure.

We were not—

sure, get your loan—

high school sweethearts. We met way after that. Not way after, I got married at 22, so yeah, that's young, you know, a few years later. But, uh, she's always laughed at all my jokes. That's, that's nice.

Yeah, you need that. We need that as men.

We do.

Wes is hilarious. I hope he never— he's a pretty funny guy.

That's good.

That's good.

Yeah.

Oh, that's good stuff.

Cool.

All right, well, I guess—

Thank you.

You can do it. Yeah, thank you so much. And you guys, we'll, uh, we'll see you next week. And, you know, make sure to share this with any new or experienced investors and, uh, reach out to Kayla if you want to, you know, invest, uh, into one of her next projects. Yeah, cool.

Maybe next week, but if not, then we'll see you in 2 weeks for sure.

Cool.

See ya.

Take care.