Buying a Seller financed resort?? - Creative Finance Live

And we're live.

We're live. I am trusting you because I literally can't see it now.

Well, I will be reading the questions. It appears that you're showing up. We're 7 seconds in. So as people come in, hopefully everything is working exactly as we think it is. So again, for those, uh, joining us here today, I'll give everyone a little extra time to log in as we did not, uh, post the link for everyone to join at this time. Uh, so just wanted to let you guys all know Cody is, uh, reaching us from the resort, Robin Hood Resort.

I left Christian for a bigger, better house. Yeah, we were, we were always working out of Christian's place, and I found out as I ventured into the little resort down in Union that it's nicer here than it is in Renton. So, uh, now we're brothers but far apart.

Hour and 20 minutes, or 4 hours on a Friday.

Lonely. So if y'all want to come visit, give Come visit.

But that was the, uh, the first question we're actually going to go through is you guys are buying a resort, so we'll just open right now, uh, diving right into our most interesting question. Cody, tell everyone a little bit about the resort if you guys haven't seen the couple of videos we put out on this. Uh, what project are we doing?

Yeah, so we're buying the Robin Hood Village Resort. This is built 1934 by Don Beckman, the set designer for Disney's Robin Hood movie that was released in 1934. There's a few historic cabins. There's actually a triplex in the front that got rezoned. It was a bar and restaurant, and that is now where I'm living. So if you saw our video of you're living in a bar, well, technically yes and no because it got rezoned. However, it's 20 cabin spaces. Waterfront in Union, Washington, property neighbors with Jeff Bezos, Bill Gates, and the Nordstroms. So we are going to be the brokest of the neighbors for a little while. However, we're going to work our way up through buying one resort and then continuing to build up the multifamily business. So that is what we're doing down in Union.

Super, super, super excited to be doing that. If anyone wants to visit at any point, just let us know. You can reach out to me at ChristianOsgood at Instagram. That's usually where I answer most messages, so just let us know. Now I'm going to read a couple of the questions off as we go into the live chat. I forgot to tell Cody how to access it from his computer down in Union, so I'll be doing most of the reading. So if you see me looking away, I will be our narrator, question answerer, or asker today. And Cody, you may be doing a little bit more answering than I am.

I could do that.

All right. Well, the first question we had from our YouTube chat, and then we'll get into the live questions, which are pouring in now, which is awesome. This is from Ryan. Is it not possible to have a nice property with no repairs and have the bank finance most? Oh, okay. I'm going to paraphrase this so it's easier to read. Basically, he's asking if you have a nice property that is bankable, is it possible to have the seller finance a little bit of it in second position and have a bank finance a majority of it?

Um, yeah, you can 100% do that. Uh, you can do it with smaller credit unions where— and you can also take it private where you have a private lender finance the first, the the majority, maybe 50%, 60%, and the seller finances the remainder. You're not going to do that with a big bank. I actually just accessed the chat, Christian Osgood. Dave asked if I was sitting on a toilet. I am in fact not sitting on a toilet. I am just sitting in the corner. This is a window. But no, 100%, you can do that. And deal debt and equity, You don't have to get any equity in deals. You can structure it 100% debt.

Excellent. From Brian Bell, what does it mean to have more market control? Oh, this is one from our earlier videos when we were talking about as you advance in multifamily, we got to a point in Moses Lake where we actually have a reasonable amount of market control and we can influence rents. Cody, tell us a little bit more about how you influence rents as you start to scale.

Yeah. So let's say that there's 1,000 rental units available in any given market. Now there's a lot more than that, but let's just say for round numbers, 1,000. If you control 10 of those, you're going to have less influence on what the rent is than if you control 100 or 500. So the thought process is if you can go pick up a bunch of rental properties and you're not just jacking the rent day one. I didn't raise rent for over 2 years holding real estate, but you keep your rents low. The thought process is if your rents stay lower, other people are not going to think that they can get higher rents, even if all the market conditions support much higher rents, which is what I did in Moses Lake. And if you keep your rents low and everyone else keeps the rent low to match, because they see what things are renting for, that means their properties are worth less because they're based on the income. And so what we do is we keep rents low for a while, first couple years in business. This was even before I met Christian, never raised rent, bought up a whole bunch of stuff, and then simultaneously took all the cash flow, renovated stuff, and raised rent all at once. When I had enough influence, there wasn't enough inventory out there for everybody to just leave, and I was improving the community to a point where I wasn't taking it above market market rent. I was just raising quite a bit from where I was at, $150, $200 rent bumps when you're doing some improvements. Well, that does a lot for your valuation. And if you keep your rents low for long enough, it'll keep all the property values around you lower than if they need to get higher rent. Because a lot of people that own in tertiary markets have owned for a long time and they're not keeping up to date on market conditions, what rent should be. So you can buy a whole bunch of stuff cheaper and then you raise the rent all at once and everything goes up in value.

If you've ever played the game Monopoly, it's actually based on this concept. You buy a lot of properties in one specific area and you are then able to start to influence what rental income is there. Then people get into building and improvements. But a huge recommendation we have is when you're getting started in real estate, Once you start buying your first few deals, don't leave that area until you have more properties. Some people like to spread out all over the place. It's a lot harder to influence a market when you have very, very little percentage of the market owned. If we slow down at all, I'll get into more of the questions here, but we are getting quite a bit in the chat, so I'm going to start pouring through some of that and then we'll pop back if we have time to more of the YouTube questions from Root. This is the first question in, uh, when, uh, calling slash working with brokers on CREXi, uh, in Denver, at what point would I need to bring in a buyer's agent to represent me? Is a buyer's agent needed? No, if you're working with the broker on that, um, that broker should be able to represent you. If you have a broker that you work with, you can always have them write it up, but you don't need to really worry about who represents you as the buyer unless they're going out and finding deals and bringing them to you. If it's on market, you call the broker directly. Um, they should be fully equipped to handle that transaction.

Sweet. Then Ryan said Ben Mala is also live right now. Nice.

Good. Hop on there and type in the chat, hey, check out Cody and Christian, they're live.

Um, he is bigger He is bigger than us in more ways than one. Dividend Dave, hello. I've been looking at different seller finance strategies. What do you think about sub-2 and seller finance people like Pace Morby?

So seller finance is awesome. Sub-2 is not a strategy, it's a clause. And it's been, uh, it's a company brand, um, for For Pace Morby. So it's a company, I believe that's his actual LLC name, and it is a clause in a contract for deed agreement. Now, contract for deed, we love and we've used many times. Sub2 is a creative clause that you can use if people have debt. However, we haven't had to utilize that as of, as of yet.

Sweet. Root, what are the hours and/or schedule of your training and mentoring sessions? Well, the actual online training is 24/7 because we're not teaching that. We recorded that, spent well over 100 hours figuring out how to build out the online platform. And the actual live sessions are Monday and Tuesday at 4 PM to 5 PM Pacific Standard Time. Thursday at 10 AM Pacific Standard Time.

And those are all in the description.

Yeah, we'll put the link in the description, but the, um, you don't have to make all 3 meetings. Every meeting has a different topic. Monday is open forum Q&A. Tuesday's deal deep dive where we shred your deals or help you build up the, the debt structure. And Thursday we actually go into a lesson where we're talking about where most people don't actually think about. Like, there's a lot of different topics and ways to shred deals. Like, I was talking about with the resort owner today about— we'll release a video on in the future. It's, it's pretty cool, but there's a lot of stuff to learn that is not on the internet.

Next question from Ryan: Would we have to be a commercial agent to do what you're doing? Are you using private money from people you know? Or are you using hard money as a down payment? No. Yes. And yes. You want to elaborate on the first part? And we'll kind of back and forth this one. There's a few questions in here.

Most commercial agents don't own real estate. Everybody thinks that being a real estate agent is the golden ticket to winning at this game. It's not. Most, most agents suck. Sorry, but It's true. Most real estate agents don't know how to buy real estate, and their whole job is to facilitate an acquisition of real estate or a sale of real estate. It's amazing how few actually understand how to put it together for themselves. So getting your license is not the golden ticket to play in this game. The way to play the game is to meet with people who've done what you want to do and learn how they did it. That is it.

No, if you're a 9-to-5 employee, that's a normal way to think. If you think like an employee, it's okay. What job requirements do I need to be an investor? But it's just not how an investor thinks. An investor is investing. It's, it's not a job, even though parts of it can kind of feel like it at times. But the way you think as an investor is, how do I take advantage of opportunity, and how do I use the pieces I have to move myself and those around me forward. And so to actually be an investor, there's only one requirement, which is you need to invest. If you want to invest in real estate, you have to buy real estate, and that is all you have to do to be a real estate investor. Um, very common question though.

Here's how that works.

Yeah, now are we using private money from people we know? Yes.

Yeah, but the, the problem with that idea is I didn't know anybody in the beginning, so You do have to go meet with people who've done what you want to do. And a lot of those people, while they can sell you real estate, they can also be the private lender. Private just means it's not public to everybody else. Everybody who's just an individual is a private— could be a private lender because they don't have enough money to lend to everybody else, but they can lend to you in certain situations. And so I went out and learned from people that had played the game at a higher level than I had. And They ended up telling me their story. I told them about mine and they ended up lending me money, small amounts of money. And small is relative because what's small to me today is a lot to me. When I was getting started, my very first sixplex that I bought, it was my own LLC, Sixplex LLC. I was just me. Well, they lent me $90,000. Which when you're getting started is a lot of money. Today, you can blow through $90,000 like that if you're buying bigger and bigger and bigger deals. If I want to renovate a 38-plex, I can blow through $90,000 really quick. But it meant everything in the beginning. And when I made them a little bit of money, they'd just write a bigger check. And that's how that started to work. But you start on a small deal and you build up to bigger deals and bigger deals. And And as long as you're making people money and you're doing good business, you can really build out a good list of private money lenders just from building relationships with people.

And the, the biggest difference that you're going to find there is if you're just going after like people you've met and you're, you're trying to raise money, if you try to match people to a deal the phone call usually goes like, hey, I have an opportunity I want to discuss. When it's a relationship that you've built out over time, your conversation starts with, hey, based on our last conversation, I had an idea.

And you—

it's continuation of your relationship. If you've communicated your goals and they've communicated theirs, all you're doing is talking about like, hey, you mentioned you wanted to do this, let's grab coffee. I have an idea that I think can move you closer to your goal. That's the difference between having a relationship and then just knowing people with money and trying to go after hard money. Or don't think of anyone as a transaction, not an owner of real estate or your possible capital sources. Just meet people, form relationships, and make sure that you line up what people are trying to do with the opportunity that you found.

Yeah. And then on the hard money piece, you know, hard money is easy to get and hard to get rid of. So be careful if you're going to do that. We've done that. But you got to be careful because if you can't answer the how do you never lose it, and then you're in trouble, and that typically comes from borrowing hard money. All right, from Gregory Kraft, two questions. Do you have any tips on talking to multifamily property owners? And number two, what are some good questions to ask? And question number three, that's more than two questions, Gregory. Who do you target for private money lenders? All right, number 1, learn your math. No, I'm just kidding. Um, so any tips for talking to multifamily owners? Be a good human, right? Just be human. Stop trying to think of it as a transaction. I'm not telling you you're thinking of it like that, but a lot of people get super nervous or super transactional, and the only reason they're nervous is because they're trying to get something out of it. If there was nothing to get out of it, you wouldn't be nervous. So just be a human. Uh, question 2 of 3: What are some good questions to ask? Well, Christian, what are some good questions to ask?

Well, the number one thing you want to work in there is you put just a little bit of who you are, your first name. Please don't give them their first and last name, but you know, Hey, I'm Greg. Communicate your goal in 1 or 2 sentences and then you get to the questions. And the first thing you're going to ask is how they got to where they're at. If I own a duplex today and I'm calling someone who has a 12-plex, I want to communicate I've never bought a 12-plex. I just bought this duplex and I'm trying to figure out how to move forward. You've done something I've never done. I'm curious how you got to the point where you owned this asset. How did you do this is the easiest question I have found that you can ask. This is completely open-ended, invites a story, and not enough people ask that. To Cody's point earlier, people view owners as sellers. And if you text me anytime like, hey, I'm trying to meet with sellers, I will instantly correct you. You're not meeting with sellers, you're meeting with owners. We're not being transactional. I just want to learn how they did what they did. That's how we start conversation. Throughout the conversation, the other major question we want to ask is when we've learned who they are, what they've done, I always ask, how do you recommend I move forward based on what you shared with me? What would you do next? Those are great questions.

Sweet. And I believe we still have question 3. Yeah. Who do you target for private money lenders? Well, again, we don't really just target people, we just meet with folks. So if they own real estate, we'll meet with them, and if they end up being a lender, great. That's about it.

And it's, it's matching goals. So if I met with a property owner and they said, hey, I'm trying to double my money every 5 years in real estate, and I find a deal that huge upside but day one doesn't have a ton of cash flow That's one where I can call them and go, hey, cash flow's a little bit low, so I don't want to structure this as debt, but if you hop on as a partner and we buy you out at twice what you put in, in 5 years from now, we'll double your money and we'll hit your goal. Now I'm communicating with someone that I know, I know their goal, and I found the opportunity that will get them exactly what they want to do. And we've done that before. Some people want to up their monthly cash flow. So we take a huge cash flow deal, the cash flow's day one, and that's something where we can come on as debt, where they can lend to us and we'll pay them a monthly return. So it depends on what people want, but that's how you do it. It's just goal lining up. You take your objectives and your deal and you line it up with what other people have communicated, and that's how the game's played.

All right. From Root, on average, how many times do you have to call a property owner before connecting? You've been calling consistently the same owner and haven't gotten an answer yet. Well, for us, 1 to 2 times usually. You shouldn't have to play phone tag. So depending on what your voicemail is, not sure what that is. If you're just saying, "Hey, I was calling about your property," they're probably not going to pick up from you, right? If that's your voicemail. Like, "Hey, I saw you own a property. I've never done this before." I don't know anybody in the space and curious how you did it. That's going to be a different voicemail than I was calling about your property because they're just thinking you're trying to buy it. And you don't always have to leave a voicemail. If you just call a bunch of times, they're going to see, oh, this person keeps calling me. But yeah, keep it simple. We usually get 1 to 2 times and we're successful. So you also may be calling a bad number.

Yeah, that's— I 100% agree with that.

Nothing to add.

It's usually just a few calls. Not everyone picks up on the first call, especially if it's a new person, they don't recognize your number. I do a fair bit of calling out of state, so sometimes people, uh, you know, I'm calling someone in Texas and I have a Seattle phone number, they're like, who the heck is this? So General best practice, just leave a very quick voicemail. I usually go, hey, this is Christian, had a question for you, can you give me a call back? Appreciate it. And leave my number. Um, about that quick. So keep it really simple. And I would say by the third time you call, they should answer, or you might have a wrong number.

Yep.

Ryan Allen found a property listed on the MLS. What is a good approach to suggest seller financing? Even just partial.

50, 40, 10, 70, 20, 10. Not quite sure what all those numbers are referring to. However, I'm guessing that's your debt and equity structure. I don't know what the middle one is. However, if you want to suggest it, just ask, hey, are you guys trying to be cashed out or would you be open to holding the contract? Just keep it simple. That's just a question. And if they're not open holding the contract, then they might be in a month when it doesn't sell. It depends where you're looking, because if you're looking on CREXi, you're looking on LoopNet or the MLS, you know, a lot of deals sit for a long time and motivations change over time. Garrett Munn. Have you ever looked at investing in Tri-Cities, Washington?

We've looked over there, um, haven't found the right opportunity that would cause me to invest there right now because we try to concentrate on the markets that we're in. Um, but generally speaking, uh, phenomenal market and tons of opportunity.

Yeah, and there's opportunity everywhere. You can find deals in any given market across the United States. Maybe other than Missouri. Just kidding, we went to Missouri and hated it.

Um, I'm very allergic to the state, the whole state. If you are, uh, if you're from Missouri, I apologize, but, um, not for me. I, I stepped out of the airport within about 5 minutes, um, I was dying.

So, all right, from, uh, Frank, what is your number one lead source?

Google.

Google Maps. Every property you want to buy is on Google Maps, and every owner's phone number that you want to find, just about, is on Google Maps. We have a Google Maps video we can link in the description below. Check that out, it's 8 and a half minutes, how to find any property owner ever. You can do that to find anybody, including Elon Musk, who's smoking on Christian's lower right corner of his screen.

Yes.

All right. Uh, Root, still haven't had luck connecting directly with property owners. We recommend I look on CREXi for on-market deals to try and sell finance. Yeah, over half my portfolio was seller financed on the market, half and half, about, uh, 56 of them. I think it was 50— yeah, 56 rentals. On the market and the other 49 were off market.

I think that's the math that adds up correctly.

Okay.

But, um, yeah, there's a lot of opportunity. Um, by the way, for those of you guys who look at LoopNet and CREXi, um, I used to work for LoopNet, so I have a little bias here, but, uh, LoopNet tries to limit how many properties they show to incentivize people to advertise. Crecsy tends to show everything. So if you're going to look at one lead source or another, I would actually direct you towards Crecsy if you're trying to look at more of the market. Um, and then a lot of what we found, not all of it, but a good thing to look for is if it's been on market for a little while, it likely didn't work for a lot of different people for a different reason. Um, however, that's your advantage because if you can apply creative financing to that and you can find a way, how do I close this unconventionally? That's where you start to get the ability to do deals that no one else can do. So it doesn't mean you have to buy the deals that have been on market for 2 years, but if you find that, that's a good indicator they may be open to some level of creativity to get it done.

Sweet. And then our last question for the day. Oh, we got someone else.

I think we have a few coming in.

Okay. Go for it.

Um, let's see here. Um, sorry, I was just looking through the, uh, the comments there. Uh, the one from Ryan that just came in, uh, what are your projections on how much debt you can acquire every year since you're picking up steam? Do you have a goal? So how much debt can we acquire? Well, that depends on our leverage point, but infinite. Yeah. It's, uh, realistically, if someone had— yeah, it is infinite. Say someone had a 1,000-unit building and they said, hey, we'll sell to you, um, 100% seller financed. I can afford zero down, um, maybe a lot of millions of debt, but if it cash flows, we can do it. So I don't have specific debt targets other than, um, I don't like to re-leverage stuff and we don't have to. So, um, indefinitely I'll keep paying down my old debt and acquiring new debt. I, I don't see a point where we stop doing that.

Yep. All right, and then from Garrett, what would you say the best thing for someone who is new to the real estate space and wants to get in the network with people? Look up local real estate meetups near you if you want to play the— that's very well-known stuff. Just go meet with people in the space that are hosting events. But if you really want to do it, you should just call up the owners in your space wherever you live, figure out who owns the property around you, call them up, and learn how they got to where they're at. The resort owner that, uh, from the place that I'm buying and with Christian, and I'm actually actively living in, he's done a lot of different things. I mean, I called Christian up over an idea, never heard about it. Guarantee you nobody's posted this online ever. Uh, we, we may when we actually figure out how to execute it. It is the most wild thing I've ever heard of, and it's awesome. We got to learn, and by we I mean me on this one because Christian's not here, some really cool strategies from someone who's been in many different businesses, multi-million, billion-dollar businesses. I mean, it gets from, you know, millions, and then there's a billion-dollar venture. When you learn from people in that space, all of a sudden there's a lot more to learn that you just won't find online. And I wouldn't have known that from doing my research online or just going to a local meetup. I'd have to actually call up the owner and learn their story. So that's what we'd recommend.

Ultimately, it's a contact sport. There's no one in your market who knows how to buy in your market better than the people who've already done it. So for example, if you're in Dallas, Texas, watch our channel, ask us questions. I can tell you a whole lot about how to structure things creatively, but no one's a better expert in Dallas, Texas on how to buy property than the people who own property in Dallas, Texas. So the name of the game is get as many contacts as you can, learn from them, and master their strategy. It's why we called our whole thing Multifamily Strategy. It's just a collection of learning from as many people as you possibly can. And Cody and I learn new things Literally, I would say, I would say every day. Maybe there's an occasional day where we take a day off learning a whole new strategy, but it's almost every single day someone brings up some structure, some type of debt, some creative aspect that I've never heard of before. It's wild how creative you can get with some of this stuff.

All righty, Ryan Craig. How many units do you call on? For example, do you call on a 500-unit property? I've called on people that own well over 500 units. I haven't called on specifically a 500-unit property because, you know, there's some levels where people are just a little less accessible. It's just easier to reach someone who has maybe 500 units in a portfolio rather than a 500-unit. It's just a different caliber of investor. And I'm not talking about calling up syndicators. If you want to call a syndicator who owns 500 units, they're probably pretty easy to reach, but just an individual who's got 500-unit complexes scattered about, we haven't needed to yet. We'll get there someday, but we're not there yet. Dividend Dave, we appreciate you a lot. Thank you. Thanks.

Uh, from Jordan: Are you guys always having to upgrade properties in some way to increase the rents? Well, a vast majority of our properties were built in the 1950s. Uh, we have some stuff in from the '70s, we have stuff as old as 1911. So the short answer to that is yes. We generally, but not always, have a good deal of upgrades that we want to do to a property. We have some stuff that's turnkey, but I would say of 10 acquisitions, 8 of them have had some sort of significant renovation piece that we've had to factor for. Yeah, the good news is that's a huge opportunity, especially on the creative end. If there's some deferred maintenance, you can actually bake that into your proposal. I like to do tiered payments. So say we're starting with a property that I want to cash flow some deferred maintenance, I might actually start with lower payments and say at 6 months to a year the mortgage payments get a little bit higher. And if a deal is low on cash flow, that's another way to structure that. So, um, just make sure if you are buying something that has deferred maintenance where you're raising the value make sure that you're not cash negative day one. You just have to make sure you can answer, how do I own it and how do I never lose it? A good way to lose properties is to lose money every month before you can fix it. So as long as you have the pieces in line, that's absolutely something we do. And that's where we've actually built a lot of value in our portfolio.

Dion has joined the chat.

Ah, there he is. Every time you guys hit the like button, an angel gets its wings. That's when we know Dion's here. Thank you, Dion, for reminding everyone that I have not verified that that is true, but I trust that it is. We can test that by hitting the like button. Thank you, Dion. All right, yeah, do we have anything else that we want to cover? I don't have any more questions rolling in, so I'm going to just do a last call for questions. And I, I, um, you know, I'll give that a minute. But, uh, Cody, anything else we want to cover today before we call it quits?

If you want to come hang out at the resort. Come book it. Uh, I live here full-time. A lot of people have asked, how do we get in contact with you? How do we learn the multi-family space? Not in a position to do the course yet. Well, if you're not there, then come stay at the resort, robinhoodvillageresort.com. Hang out, let's go kayaking. And back to the whole meeting with people that have done what you want to do, if you want to come hang out, come hang out. Book a stay, hang out, let's talk real estate and make it happen.

And, um, looks like a last couple of questions. Once they slow down, we'll call it quits for good, um, for today anyway, not for good. We'll be back exactly the same time next Wednesday. Um, but from Gene, uh, we were looking at a 5-plex seller has agreed on seller financing, but will also qualify for a bank loan. Which route would you take and why?

What do you want to do? Right? I mean, if you want to get a bank loan and you qualify, great. If you can get seller financing with less down payment, smaller interest rate, and a longer term, I'd probably do that. The fact that we do seller financing doesn't mean we hate banks. I mean, we don't like banks, but we don't hate them. Yet. And yeah, I mean, if you can get better terms with the seller, do it. If you can get better terms with the bank, do it. But at the end of the day, how do you buy? How do you never lose it? Well, how do you never lose it? It's built off of cash flow and long-term debt. And if you can get more cash flow and longer-term debt with a bank than you can with the seller, I'd probably opt to do that. Yep.

That was exactly what I would say. What maximizes cash flow and what maximizes longevity? If you can get seller finance terms at, say, 5% for 15 years, that's probably better than you're going to do with the bank. And I would look at doing that. But just look at the two debt offerings and figure out what you want. One thing that will likely be true is it will be easier to close a seller finance transaction than a bank, a few less hoops to jump through. So if they were the exact same offer, say, just down to the percentage duration, exact same, I'd probably still opt for the seller over the bank. That's just me.

Yeah. You won't have origination fees. It's great. Yeah. Jose, thank you for your time and answers. Do you recommend a fourplex as a first property to live in, or it doesn't matter the unit? If you can do a fourplex, that's better than duplex. Mm-hmm. If it's in the same area, I mean, I'd rather do four than two, cuz you'll have three people paying instead of one when you're living there. So yeah, I, I'd go for a fourplex FHA. All the way, make it happen.

I do have a thing for this though. Uh, a lot of people choose strategy and a unit count before they actually get started. So they go like, I am going after a fourplex, I'm going FHA, and that's what I want to do. Um, like, awesome, perfect target, go towards that. Uh, don't let that eliminate all the other strategies because if you are so focused on that fourplex and FHA that you miss a seller finance 10-plex that you could have bought zero down the cash flow is $1,000 a month, that's just kind of lame. And if you end up accidentally picking up 10, 20 units on your way towards your FHA fourplex, well, now you have 24 units. So, um, just huge piece of advice. I started focused on, hey, I just need to get a duplex because that gets me started in multifamily. And it did get me started multifamily. If I was open to other deals and other structures on the way there, I'd be a lot farther than I am today. So great target. Don't let that slow you down from other opportunities.

From Lorenzo, is it best to start investing right away or get capital by wholesaling first? This game is easier with money. However, if you're creative enough to wholesale it, you're creative enough to buy it.

And any deal worth wholesaling is worth buying.

Yeah, if it's actually worth wholesaling. So We're going to always advise skip the wholesaling route. I could have wholesaled my deals, almost all of them. A lot of them sat on the market. The 38-plex, I had a buyer who I could have wholesaled it to and made $300,000. I could have sold it for $2.3 million. It sat on the market at $2 million for 13 years. Could have made a bunch of money. However, I decided to not do that and made a bunch more money. So The moral of the story is the winners in the real estate game are the owners, not the sellers. Now, granted, there's a point where you want to sell out, but if you're just selling contracts, you're flipping contracts, or you're selling deals as an agent, you can't outearn our portfolio as a real estate agent. There's only so much you can make. You can be in really high cost of living areas, but if you can build a 100, 200, 300-unit portfolio, portfolio will consistently do more money than 99% of all agents on planet Earth. So if you're good at math, you'll understand that if you can be better than 99% and it doesn't cost you a dime, odds are it's probably the right way to go.

So 100% agree. Chat has ended, so we will call it here for real. But if you guys have more questions, post in the comment section on this video. If you're watching this later in the week and you're watching the recording, again, comment section. We'll hit more of the YouTube comments next week. We'll do a little bit of catch-up from this week. And yeah, we look forward to seeing you guys next Wednesday. At 3 Pacific.

Appreciate you, Jordan. Thanks for that comment. See you guys. Did you end