Whiteboard Wednesday at the RH!

Okay, we've made it. There's no internet at the Robin Hood because we're working on projects, so unfortunately that leaves me mobile edition. However, it is starting to get to be better weather. We've got some blue skies, it's getting warmer. Super stoked to be out and about with the sun because we went through a very cold and brutal winter here at the Robin Hood. Super stoked to see everybody. A whopping 0 people here. But for those who haven't seen the Robin Hood, I'm in the backyard, and in the winter we have a lot of storms, so that knocked down all this debris, killed all of our plants, and it's been an adventure. All those trees over there fell, but this is the backyard, and this is the type of stuff you can do seller financed. On the MLS, zero money down. Looks like we got our first person joining the live. Christian will be out here in just a minute, or he won't. Those are the options. We'll see how it goes. But if you're getting into the live, which we have a couple people, feel free to put your comments down below. Today we're talking about private money. We are doing a lot more seller finance deals right now. We got a 12-plex going on, got a mobile park we're working on., and all the money is coming out. If it's not seller financed, it is private, because I am quick to run out of money as soon as it goes into renovating some of these properties. When it comes to private money, everything starts with a conversation, starts with a hello, and starts with building that relationship. All the deals that I'm putting together today would not have been possible without me cultivating relationships just a few years back. It was a little slow in the beginning, and that's what it is. That's how it is for— hey, we got Dividend Dave! Dave, we need to meet up for coffee, if you like coffee. But we're talking about private money, and really it's a slow snowball. It's like the debt snowball. Paying off the first rental takes the longest. Hey, we got Amani! But, uh, it takes the longest in the beginning. With relationships, it also takes a long time, or at least it can. It did for me. First few years of getting into real estate— first year I bought one property, the second year I bought one property, and then in 2021, which is my third year in the business, I bought a whole bunch of properties. And the reason that is, is in the beginning you get your relationship and maybe you buy a deal, maybe you don't. But as soon as you have that relationship, it stacks. People talk about the stack method from BiggerPockets on building out your rentals. But if you do it with relationships, you find more and more deals. And whether that person is the, the property owner or not, they can help you put this stuff together. So I've had property owners actually not only seller finance to me, but they've funded down payments for other purchases. That is how all this stuff became possible. The Robin Hood— I'm in the backyard right now. This was built way back when, way before I was born. It's 89 years old this year. But this was funded with zero money down. Another property owner that I built a relationship with wrote me a million-dollar check to buy this place. And had I not built the relationship over the couple years, never bought anything from him, but just built that relationship, that made all this possible. Dividend Dave, I'm excited for you to be in Washington, and I'm excited that you like coffee. I too enjoy coffee. As we got a few more people, we got 7 people in here. If you have questions for Whiteboard Wednesday or regarding the Robinhood— all this was done just with an idea. Came up with an idea, this popped up from Dion's YouTube channel, which came from Michael Zuber, and when this popped up, we just had to present to somebody. Talking about relationships, private capital. If you have an idea, you share it with someone that you've met before. And with that, we bought this asset with a signature. The same thing happened just across the creek here. And I'll see if you can see it. There's a huge white triplex over there. We actually bought the tiny home over there seller financed too. Bought that with a signature, zero money down. That was just an idea popped up on the MLS as well. And we just shared it with property owners that we had built relationships with over time. Never bought anything from them. If you want to do the private capital game, you want to figure out how to get money from people, seller financed or not, all you got to do is meet up, say hello, learn about what they're working on, and when you have an idea, you just got to share it with them. Looks like we got some chats, which really appreciate. Super chat from Dividend Dave. Oh, you're making daily calls to find deals. That is awesome. Looks like we got a few people in the live chat. Hey Jaden, hope all is well. And if you're ever around, you should come check out the resort. Oh, I don't know how well the cell will work if I end up walking around campus, so I won't go too far. But would love to have everybody in here. We got 11 people right now. Come check this out because it's, it's really pretty. Charm City, see you next Saturday, coming from Baltimore. That would be awesome. And we got Jane, always tuning in, man, can't wait to meet you. That's great. Hey Annabelle, welcome to the chat, thanks for joining. If anybody has any questions, feel free to put them in the chat down below. I really appreciate all the support. Christian should be joining here in a minute. He gets to do all the fun team meetings that I don't get to do and don't have to do, which is nice. But yeah, if you have questions, he's gonna be joining here just in a minute and happy to go over those for you. If anybody's working on any deals, put it in the chat, would love to discuss it. But really, back to that point on private capital, if you have an idea Simplify it. That's our whole brand. Keep it simple. Share it with someone that you know, and you can buy legitimately anything. We bought the tiny home over there, 100% LTV seller finance, payments $491 a month, and it'll rent out for $100 a night. You can do this with literally anything. All these trees, the fences, the structures. It just came down to having an idea. Trip Tides: How much are you guys cash flowing on the resort? So that's a fun question, and we're very open with our numbers. During the winter, we were cash flowing about $7,000 to $8,000 a month, and then had a whole bunch of issues pop up, huge capital expenditures. I'm not gonna list in case the county watches this video. But a lot of CapEx that we had to do from deferred maintenance. And so that ate up the cash flow pretty well. But one of our biggest rules, if you're ever getting into real estate and you're not there already, figure out how to get the real estate to pay for the real estate, and one day you'll wake up wealthier than you are today. And so even though we had, we had some 5-figure expenses, didn't expect Some of them were just trees that have fallen or trees that had to be felled, but some was some big CapEx on the inside of the units, like with the furnace, swapping over to mini splits. But we got the real estate to pay for it all. So if you can get the real estate to pay for the real estate, you're set. Let's see, live chat from a phone is always going to be fun. It looks like we got some questions. And by the way, in the summer I think we'll be able to get it to $25,000 a month average. From Alan: Are you guys liking Airbnb so far? I got some Airbnbs here in Washington too. I like apartments more because I don't have to think about it as much. We do have this on Airbnb because it helps book it out. And then if we look way over there, we got the white house over there. That's a little triplex that's going live on Airbnb. But I like stability. You can make a lot more money on the short-term stuff. This resort and that Airbnb over there can outperform our whole apartment portfolio. However, the apartment's gonna be a lot less work, so I like that better. From Tips: How's the nightly rent and occupancy been since you bought the Robin Hood? Better or worse than you expected? We are up month over month 25% above prior ownership. Numbers. So I think we're doing well but still figuring out a lot. Just because you have extra revenue doesn't mean you have, uh, extra profit. So we are figuring out how to hone in expenses, and that's coming through efficiencies and just upgrades to the general resort. But we're not there yet. Overall, I'd say we're doing pretty well for the slow season. From Dividend Dave, calling sellers' agents to learn "The house story to see if the owner is open to creative finance. Love it." From Brian, or Byron, "Thanks for the education. Trying to buy an 8-unit apartment." That is awesome. I love 8-plexes. And then from Jane, "Just watching all the mentorship videos, getting all the info." And that's all for our chats. Those who haven't checked that out, that is the simplest way to buy real estate. But to break it down as just a little crash course, Meet with the players who own the real estate and learn how they got to where they own the real estate and repeat it. It's so simple, but people aren't talking about it like that. You just have to meet with the players, learn the rules that they played by, and then play by those rules, and you in fact become like them. From Imani, can you talk about how to find private money from scratch? Absolutely. When it comes to finding private money, nice thing about the private part is it is just owned by people. The private is when referred to business or ownership, just means it's owned by individuals. So the individuals are just people like you and me, except for they have more money than probably you and me combined. You just have to meet with people in the space. This is why I do the whole Google Maps thing. We have a video on how to find contact info for any property owner ever. That is exactly how we do everything we do. If you want to figure out how to find private money from scratch, you have to know that money is the least important part of any real estate deal. The deal comes first and then the money, and the order of operations for that money is debt and then equity. So you go deal, debt, equity in that order always. Some people like to find the money first and That's not a good place to start. You should just focus on, okay, what's, what's the idea? Like I was talking about earlier, Robinhood, that was an idea. Then we lined up the debt. We got them to seller finance $3.5 million at 4.25% interest for 8 years. So we had the debt, then finding the private money, we just had to pitch the idea and show them the debt and showing it was real. So in the beginning, if you have no one to show, you better reach out to people that have played the game. And the way that I did it was through Google Maps, because every property you could want to buy is on that map. And if you watch the video on our YouTube, it's one of our most watched, got a pink background, it's obnoxious, then, uh, that you can repeat exactly what I did, which is how we recommend you play the game. You meet with the players that have done what you want to do and that allows you to become one of the players. And if anybody wants to drop a like, that helps the YouTube algorithm. All right, from Dividend Dave: Do you have to wear green tights when staying at the Robin Hood? Are there archery classes? Dividend Dave, if you wear green tights, then we can shoot some archery. That'd be fun. I'll have to buy that, and I might have to buy another pair of tights because because my tights are too small. I had to wear Christian's because they lied on the sizes when we ordered them. From Annabelle, I'm thinking of joining your mentorship. Do you think coming to the event next Saturday would be better or both? I live in Chicago. If you want to come to the event, absolutely do it. I'm not going to dissuade you from doing that because I love it here and I know it's going to be a great time. We have Savannah who's going to be speaking. She owns a motel she's converting into a resort in Packwood. So that'll be her little ski spot. But we've got some phenomenal speakers. We got lenders and just great overall speakers, some in the HVAC space. It's going to be a good time. And if you want to learn to play the game at the highest level, we have a lot of heavy hitters coming here, a lot of BiggerPockets crowds, and it's going to be well worth it for you. From Triptides: I have a 7-unit apartment portfolio, owners wanting to sell. It's 120-ish— oh, 7-unit apartment portfolio, 120-ish units. They want $9.5 million. Trying to run the numbers, see if it's a good deal. If you want to just run numbers really quickly, you need to establish what are you putting down, because that's going to be a function of your debt. If they want $1 million down, seller financed, then you're going to have to finance the rest, $8.5 million. And you have to figure out a couple of things. What's your NOI? So your net operating income is the money you have to pay yourself and pay your mortgage. For $120,000, I have no idea where you're buying, but if I assume that that's going to be a 7% cap rate market, maybe higher, maybe lower, then your NOI on that, you just multiply it out and you're gonna have like a $665,000 NOI, somewhere in there. So you just have to underwrite your debt for the $8.5 million to be cheaper than that. And if it's not, then you're in trouble. But just keep it super simple: income less expenses equals cash flow. If that number isn't positive and you can't figure out the down payment, then you don't buy the deal. And that's the simplicity of that game. I do like 120 units, so that would be a double on my current portfolio. And I like doubles. You don't have to hit a home run every time if you hit a couple singles, doubles, and triples. It looks like that's it on questions, and Christian still hasn't joined. He's slacking. No, I'm just kidding. He's doing a lot of work. I get to do all the fun stuff. He gets to do all the hard work. If anybody has any last questions or parting words for YouTube Live for this Wednesday, let me know in the comments. But otherwise, I hope everybody has a phenomenal rest of their week. Today is a short live because we lack internet. That makes it a little difficult to actually do this. But, um, appreciate everybody hopping on, and we'll see you next week.