Living in the fast lane Multifamily Live

All right, we're live and we're late. Mr. Tardy Pants. However, we are committed to going live on Wednesdays. We're only an hour and a half behind. We were in a little town called Union with no internet and Christian was going a little too quick. So we were living in the fast lane and got a ticket, got pulled over, and hence being late.

Okay, to be fair, I believe we can fact-check this afterwards, but I believe we've been doing a year or more of not missing a single Wednesday at 3. I believe we hit every single one. So first time we've ever a bit late, but we're still doing it.

Oh, we are doing it. So what's an update for this week?

Well, I think the big one is we just got back from Vegas. I'm about to head out to Texas to meet with a client and see my family, and then I'm off to Tennessee with Christian. We're going to be speaking on stage over there, putting a new pin on the map.

And other than that, then we're back in Vegas. So it's gonna be a lot of travel, a lot of work. However, we are super stoked to be able to take everybody here along the journey with us as we start to grow. What were we doing in Vegas yesterday? Were we gambling away all our life's earnings?

No, because we won!

Not actually. We were meeting up with Brad Lee. He owns Lightspeed VT and a whole bunch of other companies. But I was on his podcast, Dropping Bombs, that'll be launching here shortly. Christian was in there as well, but that was just a phenomenal connection that we got to make. And by the way, if you If you don't know who he is, you should check him out. It's Dropping Bombs on YouTube. He keeps it real, but he is just another owner of another company. I found his number on Google, gave him a cold call, and that is what started that relationship. You can do this with anybody on any level regardless of how big or small they are. Fact. Now we have 7 people in the chat.

Wow, that's 7 more than we had at 3 o'clock.

All right, we got something here from Ben. Closing my first "Financed deal on the 28th. Thanks for everything, guys." Ben, that is phenomenal. Congratulations. Make it happen. We are closing a deal on the 28th as well, so we're gonna be closing twins.

Yeah, let us know what you're closing on, where it's at, and how many units. I always love seeing what people are buying.

Also, we realized, and I just remembered, we have a white— no, Whiteboard Wednesday real estate. We have to give away a shirt. However, we're driving and our day is completely behind and we're late and there's not a lot of people here. So we're gonna do that next Wednesday. It is on the calendar. Hey, we got Dividend Dave! We can actually get started.

I might actually come in and we might do a special version of the live. I might be bringing some dice down to Texas. We'll see if we get that done.

All right, yeah, bring the dice and we will do that.

Uh, we'll announce it again on Wednesday in case people missed it.

Heck to the yeah! And then we'll make sure to send out the shirt because we owe that.

That is owed.

When you guys cold call, what do you say when you have no idea what exactly they own? Well, you have some idea of what they own because you found them and you gave them a call. So I call them about a specific property. If they have a duplex that I found, I'll call them on the duplex. If it's a 10-plex, I'll call them on the 10. However, it is property specific. I'm not calling to buy their property. I am calling specifically to grab coffee and learn how they got to the point that they're at with their portfolio and them specifically because I found their specific property. It's not a general, hey, I saw you on a bunch of real estate Well, I've had people call me about that and I'm like, okay, which property? Oh, I don't know.

We got a call today related where someone called and just basically said like, hey, I heard you use other people's money.

Yeah, we do. Banks are other people's money as our seller financing, as our private capital partners.

How are you structuring that? Too broad.

Yeah, you got to be specific if you're making the cold call. That guy cold called me today. It was a very poor cold call if you're watching watching this, I'm sorry but not sorry.

You need to be a little more specific.

Yep. From Dividend Dave: What is the best method for creating inventory when properties you want keep getting snatched up? Sad face.

From the one who snatches them.

Yeah, snatch them prior. No, but seriously, when it comes to getting deals, whether it's on market or off market, the ability to make a decision quickly and execute on whatever you decide to do, that's going to determine if you're the person snatching up the deals or if it's somebody else. Make sure it's you. If you can figure out how to buy and how to never lose it, don't put any time in between. Just make the decision, go for it, and that'll start inspiring a lot of confidence in the people around you, whether it's an owner or a broker. All right, Ben said 2 duplexes in Wisconsin appraised for $16,000 over purchase price. Units are dated, so room for renovations as well. Hey, that's phenomenal. Let us know when you close.

That is, uh, that is exciting. I started with 2 duplexes, but I had to do them one at a time. So you're going twice as fast as I did.

Going quick. All right, Dividend Day, follow-up question: How do you convince a competitive buyer that the deal you want is haunted? Well, put on a bed sheet and start running around the house. I think that's what I would do.

I know Dion would dress as a pirate and run around the house, but either way.

Ooga booga. All right, from Rob, watching from Krispy Kreme, eat a donut for us, I'm hungry.

Yeah, we have— we don't really stop working and we have many days. Some people are really into intermittent fasting. That's not me. However, we do have days where we just don't eat because there is no time. Today is one of those days.

You don't have to intermittent fast, by the way. If you just consume less calories and more protein and work out more, it'll do better than intermittent fasting. Fact. Is it still viable to offer seller financing on properties before sitting on the market for 100 days? Absolutely. You can offer whatever you want, whenever you want. To whoever you want. They, if they're willing to accept it after 100 days, they'll probably accept it before 100 days. And whether it's 30 days on the market, that thing is not selling very fast.

Let me see my mirror there really quick. Sorry, mirror check. Your phone's blocking my view.

Oh, yeah, we are driving.

There we go, mirror check. And good. Oh, we're not done.

Okay, and that's fire, that's not a police. Not happening twice today. Nope. How many times do you call the owner if they do not answer the phone? Until they answer the phone.

Yep, uh, there's very few exceptions to that. I mean, probably less than 100 times at some point you just accept that you might have the wrong number or they're not going to answer. But generally speaking, Robin Hood Village Resort, I called 4 times in the first day. When I reached them, they're like, wow, I rarely ever check my phone, what perfect timing, I'm glad you called. It's like, yeah, first try, it's just how that happens. So call them until you reach them.

Alrighty, from Christopher, what's the process of Assuming the mortgage and how do you structure the seller finance? Well, those are two different things. If you're assuming a mortgage, you're going to have to qualify with whatever lender has that loan in place. If you're doing it correctly, you're going to move that loan from them to you, which could be your personal name or your LLC. You're not going to just leave it in place and hope they don't find out. So you're going to have to qualify for the lender. If you don't, then that's where seller financing comes in, where there's no lender to qualify with other than the seller. There's no underwriting that you have to qualify other than making them trust who you are and your ability to actually perform and make payments. So if you're going to do the loan assumption, make sure that you're connecting with their lender and make sure the loan is assumable. And if you're doing seller financing, that is a promissory note and a deed of trust as a standard. However, you could do real estate contract. There's some other ways to play that game.

Worth noting, if you see a deal where it says the loan's assumable, it's likely a good candidate for seller financing. Financing, or at least more likely than another deal, because if you're assuming the loan, it means they likely don't have any other obligations. If you're assuming their bank debt, the rest of it is their equity. So if you're assuming the debt, they're in a position to be able to seller finance to you. That's why you see so many of those in combination with each other.

So David and Dave have got an offer on a property. Someone just called me, so I'm hoping that doesn't kill the audio. That happened last time. Okay, Aaron's asking about where David and Dave are located. Hey, All Nighter Hider joined the chat.

It's official.

Official. Rob says 5-year-old needed a donut. Alrighty, you should get them a donut. Owen, I want to secure a deal with hard money debt, but this is a long-term play, so I will have to exit the hard money debt at some point. Will I have— while I have the debt, should I actively be searching for the equity? I would. If you have the debt product, your next step is the equity piece. So you're going to have to find that. If deal debt equity, you got the deal, now you got the debt lined up, you need to go find that money. Tony is looking to buy multifamily, has $165,000 in equity in one single family. Nice. 3% interest currently, don't want to cash out and refinance to 8%. Should I go the HELOC route? Well, if you want to tap the money, then I would opt for a second line of credit rather than refinancing your 3% money because 3% money is more better than 8%. All right, hit the like, it's official. Yes, All Nighter, we appreciate you hitting the like, that helps tremendously. And if anyone else wants to do that, that would be baller.

It is encouraged but not required, but do it anyway.

Yes, do it anyway. And that is it for the chat. And since we're mobile— oh wait, we got another one. Here's a good one from Alex Hawk. How many owners do you call in order to get one deal? 7. It depends how good you are. If you are terrible on the phone, you're probably going to call a lot more than someone who's great on the phone. But at the end of the day, it's typically not going to be 1, and it's typically not going to be more than 100. If you have 100 contacts, odds are you will book a meeting, but you get what you ask for. If you don't ask the right questions, you will not get the right answers. And that is just a fact. If you want to book a meeting, it's a lot easier than getting I'm gonna sell you a deal over the phone. If you just ask for the deal, you might get one, you know, or you can just become like the next wholesaler who sucks at buying real estate. When, if you're wondering which wholesalers suck at buying real estate, it's almost all of them. But it just, it's gonna depend what you ask for. If you're asking to book the meeting to try and build that relationship, your odds of success are gonna go way up and you'll get more deals for the amount of phone calls that you make.

Realistically, if you're calling and you're just trying to do it over the phone, I know people who make hundreds of calls a week and they do a few deals, maybe a deal or two a month, maybe, for smaller buildings. If you are just going to book the meeting, I think realistically, depending on how, how good you are and how well the meetings run, 3 to 5 meetings, someone's going to help you buy real estate. You're either going to buy from them or they're going to introduce you to someone. But that seems to be the case with us. When we meet, we either learn something amazing or buy a piece of real estate. That happens almost every time.

Rob asked how many units we're closing this Well, we're going to close a 5-plex, but it's not this week, that's going to be in 2 weeks. And then that's also seller financed, 3.5% interest.

Interesting.

It is. Alright, what are your first go-to things to say or ask when cold calling an owner? Well, the first thing is the introduction. So if I'm calling up an owner and they don't know who the heck I am, I need to qualify myself. So I'll say, hey, this is Cody, I was calling, saw you on a property I'm not selling, thanks. I don't know how I'd buy it, which is real because in the beginning I didn't know how I was going to buy that 12-plex. I had to then transition and share a point about who I am. So I said, hey, look, I'm 19 years old trying to figure out how to play this game. I saw you've done something I've never done before. I said, and like, can we meet up sometime? I'm really curious on how to get started. And I ended up meeting with him at the property. He drove me around, showed me his real estate, and from that meeting From that meeting, I ended up buying this 12-plex, seller financed, with no money out of pocket. But you have to navigate from, they don't know who the heck you are, you need to fix that, and then ask politely for a meeting. Some people will say no, some people will say yes. And the people that say yes, some of those will turn into long-term relationships, some will not. From Christopher, top 3 ways to find capital investors. Well, your capital investors are gonna be the people in your sphere. So the first thing is you need to expand your sphere. How do you do that? Could be cold calls to property owners. And boom, you have investors in your sphere. Just through the Google Maps method, we have that all over YouTube. We have a video on how to do that in less than 8 minutes. You can go to local meetups, but I found the best way to find the players in the space is to call the owners in the market you want to own in. They have the money. Even with the variable interest on a HELOC, investing in long-term debt with the HELOC, what would the exit strategy be? Pay it off? With money. Where's the money coming from? Well, it could be a value-add opportunity where you buy it for a million, you get to be worth a million for, you refinance and pay off the HELOC.

Ultimately, the property should be paying off the property.

You need to be able to get the real estate to buy the real estate. If you can't figure that out, you probably shouldn't buy it. Rob asked, what's biting this year? Uh, fish, that is, at the Robin Hood. Well, we haven't gone fishing, but we're gonna go. If anybody wants to go fishing with us, there's great fly fishing down down the road and there should be trout.

Sea run cutthroat.

Any tips for— Trevor keeps calling me. You should probably text him. I won't film you texting and driving. Never happen.

All right.

Any tips for closing on deals remotely without seeing the property? Do not do it. That is just a bad idea. All my friends who do that lose money and wonder why they lose money. That is just a poor business practice. I will never advise anybody does that, and if you want to lose real estate, then proceed with that method.

That would be like marrying someone because they had a nice Facebook profile picture. Doesn't make sense. You got to actually get to know the property.

Yeah, don't buy a catfish property. All right, I'm currently looking at on-market deals where sellers have 90% plus equity. Is there any chance they would accept a seller finance offer? Yes, there is. And if they have 90% plus equity, they're in a great place to do it. If anybody tells you that it can't be done, block them in the nicest way possible.

But forcefully.

Yeah, be direct. They can be a friend, but they are a less than intelligent operator if they think that it cannot be done. From Paul, I have a Great idea for content. You show that even if you are 58 years old, you can still play catch up and create a retirement. Use me as your guinea pig. I'm in Boise and I'll drive up. Well, Paul, send us a message on Instagram. If you're not on Instagram, send a message on Facebook. If you're not on Facebook, then create an account and message us because we can connect on that. That would be fun. Content. Dividend Dave looking to get a home in Gary with less than $10,000 out of pocket using subject to. Nice, make it happen, Captain. I would not necessarily do that.

Yeah, I was gonna say, I don't—

I have a feeling you can get better deals without doing subject to.

Subject to adds a lot of steps that you don't need to have, especially in Gary. Sub $10,000, it's like 50% down.

Yeah, you could probably buy like half the neighborhood. You could buy literally all of Millennial Mike's properties with that.

But in all seriousness, if you do things seller finance or contract for deed without the subject-to clause, I think you're gonna put yourself at a lot less risk. The, the big thing I'm worried about right now with subject-to is traditionally banks don't call loans on small houses because they placed them. Why would they want to? Why would they want to call the loan? So why look into it? However, when rates go from like 2.9% to 7, and then people put it all over the internet, well So now if I'm a bank and I'm like, wow, I really hate this 3% debt we placed, I'd rather replace the money at 7%, or we need to hold more in reserve because the Fed's shutting down banks, what do I do?

Call notes.

Yep, call notes. I can just hop into public record and say, does the person on public record match the person on our notes? If not, call it.

Just be careful if you're doing that stuff because while it's fun, it's on the internet, it worked while interest rates were going down, that doesn't mean it's going to work the other way around. So, uh, that is the end of our questions. Keep it real, YouTube. And if you have any other questions, make sure to drop it in the comments after this video wraps up. We appreciate everybody joining. We got one more question, so we will do that. In hindsight, would Christian have taken a different route other than his HELOC on his property and his duplexes?

Uh, well, in hindsight, I could have started with bigger buildings, so I would have done that. The duplex that I bought, I would have done that project that made 6 figures. That was just an awesome purchase. That was actually just a good project. Uh, what would I do different in that though? Of those steps, the one thing I would definitely change, I would fix the rate on my HELOC because I could be paying 6% instead of 9.5, and that's more better.

Yeah, it could be worse.

Yep.

But keep it real and make sure if you haven't already, hit the subscribe button. We appreciate everybody joining us for 30 minutes. Also, Paul asked, "What's your Instagram?" It's gonna be @ChristianOsgood. Christian is spelled like the religion and Osgood is O-S-Good. Send him a message and we'll see everybody next Wednesday.