Growing Wealth & Health: Sub To Investing With Nathaniel Hovsepian

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Close Nodes, Scott Carson. Hey, Real estate note investors. This is Scott Carson, the note guy. And I've been an active real estate investor for over 20 years. And for the past 15 years, me and my students relied on one company to help protect our assets and also have to create our LLCs and different entities and business formations and our asset protection to make sure that we're protected and aren't violating the corporate veil. What company is that? That's Laughlin and Associates here. They're out of Reno, Nevada. Huge, huge fan of what they do and the customer service that they provide. Not only me, but to my students, not only across the country, but across the world. Especially for those looking to start businesses here in the United States. Whether you're from Mexico, Canada, overseas, one company you want to reach out to is Laughlin and Associates. Aaron Young has owned this company for quite a few years. Laughlin has been around for over 50 years, and it's really the number one place for you to set up your LLC through the Nevada LLC or Wyoming or Delaware Limited Trust. They're just an amazing company to not only create your LLCs, but also follow up with the regular bookkeeping that you need to make sure that that corporate veil surrounds your business and and keeps you safe from ne do wellers. All right? And like I said, I have been a huge fan of them. We've used them for every llc, every entity we use, and they do just an amazing job in answering questions and helping to set up also our future, our estate, our Rockefeller plan, our asset protection plan. Not only now, but as we evolve and grow more wealth and more assets, Law and Associates is always there to help answer our questions and help structure the things to keep our assets safe. Don't you want to keep everything you've worked for, whether it's your business, your real estate, your investment, safe and sound from the folks out there trying to take you down a notch. But make sure you talk to the team over at Lawful Associates. You schedule a free phone call at 1-800-648-0966. That's 1-800-648-09 66. Tell them that Scott Carson sent you and they'll take good care of you or Check them out@laughlin USA.com. that's Laughlin USA.com. trust me. That's one phone call, one meeting you will never regret. Good morning, good afternoon, and good evening, everybody. Hey, welcome to this episode of the no Closure show. As always, Scott Carson. Excited to be here with you today. And as you guys have requested, we are delivering, you know, we'd love to hear from you guys of things you want us to focus on, niches, markets, you know, strategies to take advantage of in what's going on in the current market with a lot of the distressed, not only mortgages, but also distress bars across the place. And so we, you know, a lot of folks have asked for, hey, can you get somebody who's focused on the south markets? Maybe Georgia, maybe South Carolina, maybe North Carolina, some of those others. Well, we've got that today for you. So we've got an expert who's kicking buck and taking names. He's a rock star in the creative financing the sub2 space, specifically in two states, Georgia and South Carolina. And he's also filling a few other states. He is the host of the Networking with Nathan. Nathaniel. Sorry.

Yeah, yeah.

YouTube series on. There he is, Nathaniel Huffspin, and we are honored to have him here on the podcast today. Nathaniel, how's it going, man? You doing good today?

Yeah, I appreciate you, I, I, I didn't realize have some shoes to fill here with fan requests. So I hope I can provide some value to y' all that are listening, you know, in the future and get you kind of a little another step in your, on your journey.

Yeah, man, no problem. You wouldn't be here if we didn't know that already was going to take place for you. So you're good. No pressure, man. Just two guys shooting the breeze here for 30, 45 minutes and stuff like that. But let's, let's dive into kind of your background. How'd you gotten in investing? And then we'll go from there.

Yeah, I mean, the getting into investing is a little bit of a story, but like, long story short, I had a condo in Southern California that I sold when we left in 2016, made some money on, and it kind of opened my eyes to, oh, wait, real estate's a kind of a thing we bought, we were buying a primary residence in Oklahoma when a couple weeks before we were supposed to close on the property. My wife got a job, girlfriend at the time, but got a job an hour and a half away. And we're like, I, I don't want you to be in the car for three hours every day. So we ended up turning that, we, we still closed on it, bought it, and instead of moving into it, we fixed it up and it became our first rental. It became our first actual investment property. And prior to that I had done stock trading and everything from like day trading to longer term hold with, with stocks. But always kind of been a. How can I get my money out and working and, and making a return and try to gain passive income and all those, you know, investment trigger words. Buzzwords. Yeah, yeah, yeah.

And so, yeah, you guys live now in North Augusta or South Augusta, Georgia, right?

No, yeah, North Augusta, South Carolina. So we're right on the border of Georgia and South Carolina. If you're familiar with the Masters, where, you know, the Augusta, Georgia is where the Masters has played the big golf tournament. We're 25 minutes from there.

So I, I'm sure you get people there that have short term rentals stuff. They, their whole week is made or their whole year might be made in a week there basically, with some of their single family rentals, are people renting out their own house so they get the heck out of Dodge for a week, huh?

There is, yeah, there's people that will, they'll go rent an Airbnb in another location and rent theirs out for 10, $20,000 for the week. Usually you can get two, about two weeks worth out here. So it's, it's a lucrative place to have an Airbnb for that couple weeks. Um, it's, it's always, if you're close to the Masters, it's always a good area just because it's, it's a nice area and there's always people coming in and doing things in Augusta. But yeah, just for that, just for that week, two weeks, you can pay your whole mortgage off for the year for sure. I've actually suggested it for our house. We're a little far away, but my wife Brittany's like, no way. I'm not coming in having somebody sleep in our bed and sit on our couch and do our own things. Like. Yeah, that's true. It is a little, it's different. Yeah.

Yeah. You don't want to think of like Tiger in his boxers on your bed.

No. Yeah. Especially 20, 20 or 2000s. Tiger. Yeah.

Exactly, exactly. So, so you, you, you, you fall into being an investor selling a property in California, you're forced to turn one into a rental. Stuff like that. And, and so talk about kind of your. I mean, obviously we all, I think every investor goes through a couple different Business models so they finally settle on one that they like or enjoy. And so what that, what. How did that come about you kind of being where you're in the creative financing in subject to space for it. What was kind of the big trigger for that or what? Aha.

Yeah, I, so I've been in a handful of coaching programs, mentorships over the eight years. Yeah almost 10 years now that we've been investing. And the creative financing was a little bit less of the motivating factor when I joined Sub two, which is a, it's a community, it's a real estate investing community. It is a, it is a coaching program in a sense. It is a mentorship in a sense but it's, it's a lot more than that. So I've, I was doing direct to seller after buying that first rental property, well, accidental rental property. And I joined sub 2 because I wanted to get better at sales. That's really what motivated me is I knew some people that were in sub 2 that were really crushing it in the sales game and like okay, this is a place that I can go and I can really sharpen the skill and hone this knife. Learning creative finance was a bonus. On top of that I, I joined a little bit late and this is in my opinion that, that especially for subject to which is when we take over a mortgage of somebody, not assume it but actually just take over the payments and the responsibilities of it. I joined in 2021 I think kind of at the peak of like this is the sub 2 heyday. We have fallen past it now in a sense where prices, they, home prices haven't increased a huge amount, but there's equity now in properties. The people that bought, you know, four years ago when interest rates were below 4, you know, 4%, they've got equity, they don't need to sell sub 2 anymore unless they're in foreclosure, which we were talking about a little bit before we started going. I feel like I've just been rambling. Did I answer your question?

You answered my question. Yes. So you've been. Yeah. You got into it, learning the process. You've been doing it for about four years, four to five years now.

Yeah.

And I would agree totally with that. When rates were really, really low. You know, I would be willing to bet you probably see a lot of people that are the newer buyers, people that have bought the first time homebuyers who probably are struggling to pay or they bought a new home and now their taxes have changed, you know, since they've been there for a year with rates creeping up, it, you know, it can still be desirable. I was a mortgage broker back, you know, 20 years ago before the crash. And I always laugh when I see a 6 to 7% rate and somebody's like, oh, it's too high. Like that was a good rate back 2004 to 2008 for the most part.

Yeah.

And you know, it just, it just means you've got to be a little bit more creative or work on penciling out the deal to be more specific. I mean you can make some mistakes on selling an asset. You've got a 2% mortgage. Right. You know, as far as cash flow wise. And that's the thing I want to ask is, is your thoughts on folks that are buying or looking for subject to's some that are looking for cash flow or folks that are looking at and buying stuff with no cash flow. What's your thought on, on that? Because I, I know mine. I always like to hear what other people think about it. You know, what's, what's your opinion of that?

So for, for us personally as a company, we're always looking for at least to break even as a long term rental. We're taking on the responsibility of somebody else's debt, whether that is a sub 2 or just the person is creating a note for us on a seller finance or owner finance type of situation. It's, this isn't a big bank that's going to get bailed out. This is an individual. And so we take it as our responsibility to make sure that that note is being paid, whichever avenue that, that we're going down. And so we have a couple properties that we do come out of pocket on because that long term rental rate wasn't quite high enough to cover all the expenses of the property. And we don't like doing that. I would much rather own a property that is at least self sustaining. And then we're playing the long term game of appreciation both from the price standpoint and being able to refinance out and you know, get tax free income that way. But also from a rental standpoint that over the years rent is going to go up and even if it only makes 50 bucks now, in a handful of years it's going to be making 500 bucks, you know, cash flow.

And then you Also on the sub 2 is the principal reduction over time too for you, right?

Yeah. So you have the, the, the multiple kind of levers that you're pulling or that, that are being pulled when you're Holding a property when you're holding an asset. And that's to your point with, you know, even a 5%, 6% interest rate, it's still, you know, you're getting in a lot of the times, hey, there's a couple of years of pay down. Like it's not a lot with amortization, that scam of amortization, but, but you know, at least you're getting something. You've got a couple of years paid down. Now you're getting more into that principal pay down. You know, you're getting a lot of the times we're getting into properties for very, very little out of pocket. You know, we're not talking 10, 15, 20%, we're talking 3%, you know, like FHA type loans. So for us, that's where we're at. We do know there are people that buy these deals just for the depreciation and the long term appreciation on them and they're okay with throwing away a few hundred dollars a month on, hey, yeah, I have to make up the difference between what this thing's going to bring in as a long term rental because I'm going to get such a big DAX tax benefit and that like, like offsets that little bit. We're not in a position where that's a play for us. It's not, I don't really ever see us wanting to be in that position. But you know, what's three years down the line? We don't know.

Yeah, and that's, that's, that's, that's living life or investing on the razor's edge. You know, there's, you know, something happens. It doesn't take too much for things to happen for that. Yeah. If you're out of pocket 200. Well now, okay, that makes sense. Well now you're out of pocket 300 or 400 because of things happening with rent's dropping. That's one thing you have to look at too, these markets these days. There's, where is rent going up? Where is it getting stagnant? Because there's a lot of like, we see that here in Austin, San Antonio, rents have come that, you know, rents were going through the roof. Well, they're coming back down 5, 10, 15%, which is, which is eating up a lot of people's profits when they were in the long term or even short term rentals. It becomes more difficult because of saturation of stuff.

Yeah, yeah. It's funny you mentioned San Antonio. That's one of the ones that we have. We bought it a Year, just under a year ago. And we were going to do a wrap on it. I don't know if you know, your audience is familiar with wraps, but so.

Basically that means you're going to take it over. Is this a sub 2 deals or you bought the property?

This was a sub 2 deal that we purchased. Yeah. With the intent of it was a.

Low interest rate and then owner financing it and then, and then making a spread between whatever the low interest rate and your interest rate. And then that would be a difference between what you're paying monthly for the, you know, PNI versus the new PNI that you're. You're offering the stuff there. And so what happened? Did the rents numbers went down or what happened?

It just did like it sat on the market. We had multiple people try to sell it for us from realtors, from just wholesalers. It. Nobody wanted to buy it. We couldn't figure out why. Well, six months go by and we're like, well, that was our. We gave it six months of a shot. We got to rent this thing out and you know, kind of stop the bleeding. Come to find out there's eight other properties in this little neighborhood that are trying, that are for sale. There's eight other properties that are for rent. And like, okay, we just kind of entered into a, the bubble of San Antonio, so to speak, from a, from a rap perspective and a rental perspective, which, it's, it's one of those things when you open yourself up to nationwide buying, you're not super, super familiar with each market that you're buying a property in. And so it was, you know, was.

A risk that it happens. I mean, you can definitely, you know, you're looking at a property, there's no listed and stuff comes on the market. It happens. I mean I've, I had that happen before. We had a, a property. I bought the market. This is a few years back. Market value was worth 300. I bought it for 150. I'm all excited. I'm like, oh, that's a good, good fix. And flips it. Well, then you have nine, 10 foreclosures on the same block. The value went from 300 down to 150. I was upside down after my rehab cost.

Yeah.

And so I was like, well, I guess I'm moving into this property for a period of time, which was the only, you know, me and my dog and cat, the only people living in a 3,500 square foot house.

Oh, man. Yeah. You know, spread your wings out.

Yeah, yeah, exactly. And then, and Getting rid of it a year later, you're writing a check at closing, which is what you want to be doing. But yeah, it made sense. Now it's rebounded. I mean, you run into that. I mean, not every. And I'm glad you brought that up because this is. Investing is not called guaranteeing.

Right, right.

You know, you're gonna have some hiccups. And I think that the biggest thing is too, that is that I think so many investors especially get into it. They worry about that one deal. If they, if it doesn't go knock it out of the park, they get all depressed and stop. Well, you know, not every deal is going to be heaven. That's why we look at buying multiple deals or portfolios. So you're, because you're going to have some home runs, you're gonna have some singles, and then you're gonna have some ones that you're losing a couple hundred bucks a month on if it works out that way. Right?

Yeah. And you know, it's not ideal, but that's like you mentioned, that's why we have, that's why we've spread assets across the place. You know, one of the, one of the benefits of buying nationwide is that, you know, when a San Antonio starts to drop. Well, Boise is not dropping right now. I, I don't know that for a fact. I'm just making something, you know.

But Boise is one of the hotter markets for sure. Yeah, definitely.

Yeah.

Anything closer to Yellowstone is going through the roof in a lot.

That's right.

Which is ridiculous.

You know, people talk about, you know, you talk about diversifying your portfolio from a stock perspective. You know, I want to be in tech and medical and all these different things. Well, let's put, let's diversify our portfolio from a real estate perspective as well. We can do that through the locations that we buy in. We can also diversify through the way we, that we hold properties. So you're a node investor. Right. You could buy some long term rentals as well. That way when interest rates change, you know, my long term rentals end up doing better. Maybe you have some short term rentals, maybe you have some, you know, co living. That's something that we're very, very big into right now is renting by the room. And those are, you know, we talked about creative finance, which is the acquisition or the selling of, you know, your asset. But then there's also the creative holding strategy. So, you know, notes is a creative, that's a career. That's not something that most investors are doing. There when you think real estate investing, you think landlord tenant. Right. You don't think node investing, you don't think of the wrap like we described where I buy an interest rate low and then I wrap a higher interest rate over top of it. And I essentially arbitrage that that differential, the difference in payments. And so these are all creative strategies. It's, it's pretty amazing when you start to dive into it how many ways there are really to go about making money in real estate.

That's the, I mean being doing, you know, been doing this for 20 plus years and stuff like that. I used to travel on the Ronald grand circuit and going to all these different seminars and seeing all these experts on different niches. Yeah there truly is so many ways to do it. Not everything works in every market. You know, you also have to understand what your risk, what your risk averse to and risk for the hours if you, you know, if you have time to put it. Because every strategy takes time of learning and investing your time and learning markets and what's going on. And that's what you say. We get stuff in from all across the country. I was like listen, focus on three to five states. Learn those three to five states. Foreclosure laws get you know, the bigger market cities there. Get comfortable with those before you start diving into something else. That doesn't mean you can't see deals or partner with other investors in other markets. But to buy your for your own portfolio, get to know those markets firsthand so that you're, you're pretty comfortable pulling the trigger. I mean it doesn't mean jumping on a plane and going out and looking at one asset but.

Right.

You know, building a team of realtors and vendors that can do be your eyes and ears on an asset.

Right. Yep. Yeah, it's, it's funny you mentioned like we get stuck on being able to go see it and we've probably half the properties that we own at this point I've never even seen in person. But we like you mentioned, we have people that have seen them and gone and done inspections and walkthroughs and you know, given us opinions on what the values are, what they think it'll rent for all those things. When I go buy stock in Amazon, I don't go walk all the Amazon facilities. I just trust that the numbers that the experts are telling me are going to be accurate and that's how I am able to do my due diligence. I see the real estate being the same way. It's a bunch of little businesses that I'm investing in. I don't need to go walk the floor. I need to have somebody who can go walk the floor for me though, and make sure that there's actually a freaking house there first.

That's the hard thing, making sure the ass is actually there, not wiped out by flood or fire or hurricane. We see here in the Gulf coast a lot of times now with your marketing on your sub 2 stuff there, are you Mark? I mean, I know you say you got stuff across the country, but when you look at kind of a ratio of your local two states, two markets versus the rest of the country, how's that kind of pencil out for you?

What do you mean by marketing?

So how are you attracting your deals there locally for you versus the stuff nationwide for you?

Everything is through wholesalers at this point and a handful of real estate agent connections that we have. I do a lot on social media, talking about what we're doing, trying to provide value to people as much as I can. That way when a deal comes across in one of my areas, people even from people from Colorado and Oregon, like, they go, hey, Nathaniel's the guy in Augusta. And so they bring us deals that I wouldn't have seen otherwise. So we did direct to seller for six years wholesaling and buying properties. But we decided at the beginning of last year, 2024, we're just gonna, we're gonna shut all that down. We're going wholesaler only, just focusing on buying deals. And that has freed me up to which we haven't talked about. Get a little bit more involved in the dad health and wellness coaching that I've been doing for the past like six months now.

That's awesome. We wanna come to that. I definitely a couple of notes for that. That's good. But I love, I love that. So you're basically heck with all dealing with the emotional of the borrowers or the homeowners. Yeah, you're basically have outsourced your sales team to local wholesalers where they're the ones going out, you know, wrestling the borrowers, the homeowners to convince them to sell at a discounted price and so forth. And then you're buying that and paying a wholesale wholesaler their commission between what you're doing. But they're doing all the heavy lifting, all the holding hands and baby, baby, baby daddy drama, I guess you could say in some cases.

Right, that's right. Uh, you know, I, there is an aspect to the talking to the sellers that I miss. Um, you know, finding, getting into the emotions of it and figuring out the problem and then coming up with a solution together. I do. But just all the follow up and all the tire kickers and all the no, no calls or, you know, no answers that just. It starts to wear on you. Um, and I didn't want to scale myself out of that. At least not at the time. If. If I knew what I know now, going back two years, maybe things would change. But we could say that about so much. Thanks. So many things.

Amen to that. Yeah.

Yeah. So it's. It is. I like how you put it. We're out. We. We've outsourced the acquisitions to third parties outside of our company. And I like paying wholesale fees. As long as the numbers make sense to me. I don't. I'll pay whatever wholesaler fee makes sense. If it's five grand, that's what, that's what makes sense. If it's 30 grand and I can still make money, I will pay you 30 grand every time you bring me a deal. Yeah.

That's awesome. Now, are you funding those wholesale fees with your own funds or other people's money as part of the deal as well? Okay.

Yeah. So we've done, we've done hard money, we've done private money lenders, we've done our own cash, we've done private money partners. We're actually going through a service called Fractional Fractional app right now to do a raise for future fix and flips. So you can come with. I think it's as little as $5,000. You can be a partner in our fix and flip deals. And that's, That's a pretty cool place to be because a lot of the times, you know, we're talking $150,000 to buy and renovate a property. And most people, me included, we don't have that sitting around to just go, yeah, I'll lend on this flip. Know, fix and flip. But a lot of people want to get invested in real estate. And so, you know, it's. I guess it is, it's create. It is creative. Like being in these creative circles, people think creatively and come up with this cool thing. So it's essentially a way that you can make a fund without having to go through all the SEC paperwork and filings. Fractional has done all that for you. They take care of all that. When people decide to invest with you.

That'S great because then it. It's not. You're not violating anything by pooling funds. They're doing the, all the regulations the qualify. You're basically borrowing the money from I guess probably fractional.

Yeah. Yeah. I guess I'm not sure how that actually logistically works. But yeah, you. I go, I want a hundred thousand dollars, for example. And I, I know 20 people that each have 5,000. They come in, they, they say, yep, I'm interested. And they put, they give their money to fractional and then fractional does all the paperwork. They take a percentage of it for, of course. So you want to over raise, but I guess you could just come out of pocket for it. But yeah.

So what is, what's there? What's the fee for something like that? I mean, if you don't know, you don't know. But was it. I think, I think stuff I've seen like that before is like 7, 8% of where the funding amount is. I could be wrong or, or.

No, no, it was less. I, I don't quote me on it. I want to say it was two and a half percent. Okay, two and a half percent. But it might have been like. Yeah, so they take a percentage of the raise and then they take a fee for like all the paperwork that they put together.

Okay.

Yeah, so it was, it was reasonable for sure.

Of course. That's actually, that's really good. That's easy to do on the fix and flips. I wonder if they would do it on the notes. I'll have to check that. So fractional app basically is kind of the website for that.

Yep.

That's interesting.

Link.

You know what? Go get you one real fast and then send it to me and we'll put the, we'll put that in the show notes for everybody. That's the great thing about doing recording. We can do, we could do that. We can tweak that. But that's, that's a, that's a, that's a awesome way of doing things. Now on your. Oh man. What was it? These. You're willing to pay them as long as your numbers come out. What are your. That's what the question was. Where you, what's your kind of ballpark or what you're looking for, you know, on, on a sub 2 deals. Are we talking like, are you looking for a 200 to $500 spread or you some equity? I know it varies a little bit. If you could pick paint your strike zone, you know, your hot hot button. What are those hot spots?

Okay, so typically we're looking 5% or less as far as entry fee goes compared to purchase price. And I will explain why that is because people go, well 5%, that's so little. Well, 5% is typically from a wholesaler is assignment fee, cash to seller, cash to realtor. So three things. Sometimes they'll include closing costs and transaction coordination in, in that assignment fee. But what they don't include is rehabbing a property. We're doing a lot of co living, so we're going in and even if the property is quote unquote turnkey, we still go in and add bedrooms or change the layout a little bit around to maximize as many rooms as we can get in the property. Then we have to furnish the darn thing. Then we have to hold it while the rehab is being done, while we're furnishing it and while we're marketing it until it's rented out. And so I feel like I'm missing something too. But you know, any back payments are.

You have, are you having to pay any like back reages too as well?

If they're. Yeah. If they're arrears, you know, if there's anything that needs to be caught up. So a lot of times we see three line items from wholesalers as far as what the entry fee is, but really there's eight. And it's all those ones that I've listed. If I, if I did a good job of listing them all. I think I did, but. And then from there we're looking at what's the PITI and what's the rent. Usually we need about a 15% spread. So if it's $1,000 as a PITI, it needs to be able to rent for at least 1200. That accounts for.

Right.

Yeah, I didn't mention that earlier when I said it needs to break even. It needs to break even with a property manager in place.

That's good. So that makes sense. PITI plus. Yeah, pm.

Exactly. So that gives us the ability to make sure that the thing's managed and the PIT is going to be covered. And at that point we haven't even accounted for, you know, capital expense, expenses that need to be done, maintenance, you know, maintenance, vacancy kind of things. Of course we're not making any money on that. But this is an in case crap, you know.

Do you see increased insurance costs and co living spot versus like a regular sfr?

Oh, that's a very good question. Do we have is, is the co living insurance higher than just typical long term insurance? She doesn't have that answer. Right.

That's okay.

The blank scare.

That's okay. You know, I would be will. And then also with your Co living, I imagine you have the opportunity, depending on the house to maybe tap into some like city programs where it's like we've got a buddy in Rochester who has a fourplex that he was able to turn it into like 12 rooms that was rented out, that he rented them out to. Well, to the families of people dealing with like Alcoholics Anonymous, you know, they're going through like a dry house, I guess you could say, you know, or we've had somebody else do it where they were dealing with adults that had, were mentally handicapped or mentally challenged. You know what I mean? Kind of like a, not a assisted living, but kind of that aspect of things too for you, I think that's an opportunity, huh?

Yeah, yeah. And that's one of the. So we did co living all of last year and one of, one of my issues with real estate is that I don't, I'm not like pulled towards it, I'm not driven for it. It's just a way to make money and way to grow your wealth. For me, I haven't found that yet as, as far as passion goes. But we did co living all last year and then just maybe a month ago I go, well, how do I put my military, my veterans and the co living together? And so we're thinking, we're, we're exploring an idea here locally to us at Fort Eisenhower of creating a co living situation specifically for military personnel that are coming in for training. Because this is a cyber security capital for the government right now. So there's constantly people coming in and training. Would that, would the cities do any subsidies there? No, I mean the government's already doing that. But there is also the opportunity for housing homeless veterans, which would be near and dear to my heart as well. And that would come with, you know, potential grants and things like that. But those are down the line.

Down the line. Yeah, well, but that's, that's, that's a people thing to be able to do that and help out. It's kind of like, you know, executive leasing in a lot of cases, you know, people coming in for 90, 100 day trainings and out. We bought, we, we took over some condos down in Homestead floor near the air base based in there. And it was, the base actually managed it. You know, we were getting 101.5 times regular market rent and they furnished it. They would just keep people coming every 90, 120 days. Somebody else who was coming in and we were just getting the checks. Yeah, and that was nice. That was a very nice thing yeah, definitely.

Yeah.

But that's, that's a, that's a beautiful thing. And, and I, I'm so glad you brought that because I think a lot of real estate investors, they get into that, hey, I'm a buy real estate to make money and it becomes another job for them. It's not a. Some are passionate, but others, over time you just like, okay, this is another rental, this sub to what? Here's another note. What's, you know, it's you. You exchange one hamster wheel for kind of another one in some cases. Right?

Yeah, I, I think it's Pace that does this. He's. He's got a reel that comes out every now and then. It's like I traded in my 40 hour or. Yeah, I work 80 hours a week for myself so I don't have to work 40 hours a week for somebody else or something like that. Like. Yeah, it really is. And I, I do, I enjoy these aspects of it. I enjoy having the conversations. I really enjoy helping other people out as far as new people coming into real estate, like, how can I provide value for you? But yeah, it is just, it's a J O V at this point. Hey, little girl.

Well, let's talk about your, your YouTube channel real fast because you've got a regular daily network, you know, not daily, but weekly YouTube channel. Share with that with our audience about what you're doing with that.

Yeah, so I started. I'm not 900, whatever episodes you guys are in. I'm at 80. You'll. You're actually, you're going to be episode 91 in three weeks, I think. So there. I started that a little over a year and a half ago because Pace told me to, for one, and I wanted to. The reason or the, the podcast that I started was because I wanted to meet and network with more people like yourself, outside of specifically what I'm doing, get, you know, gain insights to what other people are doing, where their struggles are, where the successes are, you know, what they're working on going forward and how I can make connections for them. So I'm guiding it a little bit away from, from real estate, in a sense, and making it a little bit more entrepreneurial as things go on. I don't think I mentioned the title. It's called Networking with Nathaniel. Yeah, and if you, if you just search my name on. Well, I mean, you can.

We'll put the link in there. We'll put the link, everybody. Yeah, okay, go to it.

So, yeah, I'm the only link that's yeah, ye, that's out on Google these days.

Pretty easy to find that name. Not like, yeah, you know, Scott Carson or Joe Gonzalez or something like that.

Right, Yeah. I mean, there are other ones out there, but they don't, they're not as pro, like, consistent on social media as I am.

So, yeah, that's a great thing. Is, is. And I'm, I'm glad you brought that because you're a couple of things I hope people take away from this. A, you're leveraging other people's experience to finding deals with the wholesalers. And then you're also leveraging the number two search engine on the number one owned by the number one search engine with your regular networking event to learn more things, you know, to connect with other experts in other fields and bringing people together. And it's all about network these days. Not so much about what you know, but the combined knowledge of your network is so valuable. I mean, that's why we're at 975 episodes and getting stuff out. Because the more people that listen, you never know, you know, where a deal is going to come from or where a funder is going to come from or who's listening and watching. And it takes them six months to reach out to you to do something.

Right, Right. Yeah. And, you know, it takes seven to 13 times of somebody hearing your message to go, oh, yeah, okay, that that person's credible, that person's trustworthy, that person aligns with the values that I have. So the more of these things that we can do and the more we can talk about those values, the more opportunities to connect with people and, and, and do deals and do other things, you know, come about.

Exactly. Now, you talked about having a passion with your wellness and health. Let's talk about that and how that kind of came about and how you're, how you're using your real estate to finance that.

We're not using the real estate to finance that. Okay, somebody's listening.

Yeah, yeah.

We will, we will be here probably pretty soon. But from the NETWORKING, from the sub 2, I met my current partner. It's called Fit Fatherhood. His name is Zach Bush. We met. He was one of the first people I met in sub 2. When you come into sub 2, they tell you at the time, they said, go meet 25 people. And I did a great job of that. I went and met 25 people and talked to almost none of them ever again because I didn't know what networking is really. We just did the, hey, this is what I'm Doing. Hey, this is what I'm doing. Okay, cool. Maybe we should do a deal sometime. See ya. But two years go by and we end up in another, tighter circle. Another little coaching program that we were both were in and like, oh, hey Zach, how you been? What are you doing? He's a dad now. I have, I just had my second kid and we started kind of talking about that, the fatherhood aspect of things. Now for him, he's a CrossFit coach, he's a precision nutritionist coach. And so he's, he's been doing that. I'm on, I'm on a call, buddy. Okay, thank you, buddy. That's good.

That's one of the, that's the great thing about working from home. You get to, you get to be interrupted by your kids, right?

And he, and he's done an, he does an excellent job. That's the four year old. He comes up and touches me on the hip and goes. And he just waits. He did say hey dad one time, but the little, the two year old, he just comes up and goes, hey dad. Hey dad. Hey dad. Hey dad. I love you, buddy. But yeah, so, you know, health, health has been a part of both of our lives. I was in the Marine Corps, I was a collegiate athlete. I've, you know, done physique physical or bodybuilding. And so, you know, the health and the wellness has always been a part of both of our lives. Then the fatherhood aspect comes in and then we're realizing all the things that we've learned as entrepreneurs from goal setting and time blocking and you know, creating action plans and just the mindset that goes into setting and achieving goals. Man, this is really applicable to health and fitness and to fatherhood and to all the things. And so we decided, you know, we want to help busy dads, entrepreneurs that are out there moving the needle in their business, moving the needle in their careers and just feel like, man, there's not enough time for me to eat, you know, proper nutrition for me to get a workout in and still be a good husband and father. And what we do is we, we break things down. Hey, what is it the, what is it the goal that you're trying to accomplish? Okay, how can we break it down into weekly, daily actionable steps that you can do, fit it into. That's a bonus of calling it fit. Fatherhood is like were fitting it into the fatherhood. And so yeah, as I talk about it, I could feel like, man, I'm so much more excited.

You can see the energy. You got a Little bit louder in your voice. But that's, that's a beautiful thing because I think. And what, what, what, what, what sport did you play or what were you an athlete at? What did you do?

Basketball and track.

Very nice. Okay.

Yeah.

And so I think one of the big things coming as an ex college football player years ago, I think we miss, and I'm sure you missed this from being in the military. You were the Marine Corps, am I correct? I think you mentioned that, yeah. Awesome. Thank you for your service, by the way.

Yeah, thank you.

Is when you come into real, real world. In a lot of cases, we get lead the sports. I think that that team dynamic is missing, that brotherhood is missing. Accountability, you know, where your guys can hold you accountable really is missing. And I think a lot of people too, when they leave their job and they become an entrepreneur, real estate, that freedom of unaccountability strangles people. I know when I left my first job to attempt something, the freedom is what caused me to fail. I wasn't dedicated. I didn't block things. I was like, I'll just get up at 10 o' clock now versus eight, you know, and yeah, I'll work for three hours and I'll hit the, the happy hour, you know.

Yeah. You know, I'm a business owner.

Yeah, exactly. Yay. And I think we need more because let's face it, a lot of real estate investors are not, not really physically fit. You know what I mean? And that's because we get, we telephone. I don't have time. I got to show up at Home Depot, I gotta run to do this or I gotta sit in front of my laptop. And one of the, one of the most important things I've done, I say, is covet. Like I'm home, I gotta make sure I go for a walk every day. I gotta get out. If I can't go to the gym, I gotta stay active on some sort. And I, you know. That's awesome. So how is, you've been doing that for a while now with a fit. Fatherhood.

We're still in the infancy stages. We're six months.

Six months. Awesome.

Yeah. So we're just, we're still just getting, I, I, I call like we're just getting started. We're barely just beginning. Yeah. And you, you kind of hit, you hit a couple nails really, on the head there with the, you know, leaving the military, leaving a job, leaving a team sport, even in some respects, getting out of high school and college, you're being told where to go and what to do and how to do it. And like, it's very easy to follow along. Especially getting, you know, in the Marine Corps, in the military, it's like, hey, be here at 6. We're going to do this for five hours. Then you're going to go to lunch and you're going to be back in 45 minutes. Then you're going to go back and you're going to clean your, like all those things are told, told to you. So when you get out, you have all this freedom and it, it, things can easily creep in and fill your time. And so a lot of the times we go, we start with, hey, what does your day look like? I, I don't have the time to get a workout in. Well, let me, let me look at your day. Let's do a time audit. Well, look at this. You, you scrolled on Instagram for an hour and a half today. I'm not saying to get rid of Instagram entirely, but maybe we could take 30 minutes of it out and you could get a 20, 20 minute workout out. Okay. So there's time there. And then the accountability, the community, like those, those are things that you're missing. Especially as men, as dads, we don't have a place to be vulnerable. And just to talk about this, I, I, we do a lot of coaching calls and people will go, oh man, I've never talked to somebody else about this. I know. That's, that's why we're here. Because we need to have the back.

And forth and you gotta have the back and forth, you know. You know, I'm a part of a Bible study group that meets on Monday nights, stuff like that, for an hour, hour and a half.

Okay.

And you have vulnerability there. You, you share things that are going, everybody's going through a variety of things. It's not just all about, hey, how many deals can you close and what was the paychecks? It's if you have a crappy quality of life and you're not enjoying things, not only is it detrimental to you, but it's detrimental to the most important people in your family. Your, your kids, your spouse. And you know, they want you to be happy. They, in the, you know, when you can find that joy, being able to. Because I'm a big believer that when you have a bad day should not flow downhill. Right, right. It should flow uphill.

Yeah.

You know, and that's the way having a networking or accountability group like that is so important. You can share that and not take it out on your spouse or your Kids, because you're frustrated and you know, you know, we always get, you know, me wrong. Our spouses and our family are the greatest people we love the most, but they also take the most amount of, from us in a lot of cases, you know.

Yep. Yeah. And it's, it's, that's a tough, it's a tough realization. But you know, inside, inside of our community, outside of the community, we talk about grace. Like, just give yourself grace. And so, you know, every now and then the shit's going to flow downhill and it's okay, I got to give myself grace. If, if you haven't been just doing that to your family all the time, they're going to give it to you too, hopefully. But, you know, having, having that area, that, that, that space that we can talk about these things, you know, be vulnerable and then the, the community, the support comes in and goes, dude, you, it's all, it's all good. We all have bad days. We all have these, these things. And you know, I've said this a handful of times over the past couple weeks, but this, it's this visual that I have is that we, we all have these cups, you know, and in our family, we're walking around with, with these cups and especially the kids, but you know, the spouse, they reach out to you for your cup for, to, to. I need some, I need some cup. I need some in my cup right now. And if I'm not taking the time as a dad to pour into myself and fill up my own cup, out of the picture of exercise and nutrition and mindset, when they come up to me, I don't have, All I've got is in there, so to speak, so I just pour the. In there.

Or that you don't have anything and they go other places to get their cup filled, which is not what you want. Right?

Right. And so it's, it's tough. But as that, as that father, as that dad, as that man, as that husband, we've got to take the time. Because if you're not doing it for your family, what are you doing it for? You know, if you have a family, if you're out there building a multimillion dollar business and then 10, 15, 20 years from now, your health is so crappy that you can't enjoy all the fruits of it? What was the point if 20 years from now your kids don't recognize you because you were never there to take care of them, to be with them, to fill their cup up? What was the point? Now there are people out There that don't care about that. But for me I, that's, I'm family first.

Well, but that's, I think that's a definitely thing because I think we do have, you know, you look at real estate investors and I've been a part of some big masterminds and you're always, you know, there's a, there's a pretty good size. I mean divorce rates already high across the country anyway. But you see a lot of them going through divorces and that passion to do more affects them derogatory, they fill with other things and it's, it's unfortunate to have that. And like I say, you know, financial freedom isn't always numbers. It's not having 3 million bank. Maybe it's making 3500 bucks a month to not work so hard so you can't spend more time with your family and kids. Now I don't have any kids besides the four legged kind. But it's the same aspect of things, of enjoying your life and having truly a life and not a not being, you know, handcuffed to a job or something you're not passionate about.

Yeah, well, and you mentioned, you mentioned the going out and taking a walk. We don't realize sometimes until we go do those things that they give us energy, they give us focus, they give us mental clarity that going outside and getting a walk could be the best thing that you do for your business. And it's cliche in a sense and it's a little woo woo until you go do it and you realize, oh, it's not that woo woo like going outside and getting the sun and getting the fresh air and getting the movement in and getting, and being alongside. You know, you mentioned a dog and a cat. Maybe you take the cat out too. But I don't, you know, have, you know, your, your best friend is there next to you, your dog is walking with you. So all those things combine to give you energy and revitalize you. And if, if taking a, a 20 minute, 30 minute walk at 1:30 in the afternoon sets you up for the second half of your day, you should be doing that every day.

Yeah. And I think that's the big thing is I like what you said is prioritizing, look at your schedule, blocking things out. One of the things that I did years ago was literally just say, okay, I'm not taking any phone calls till 11 o'.

Clock.

You know, I got to get my morning, you know, morning is mine so that I have more effective. And it's, and I Know, it's a huge difference from it mentally speaking. Just the, the focus, clarity and you know, you can still get the amount. You'd be surprised. You may, I may have three hours less a day, but I still get as much stuff done and more effective and more in it, especially come the afternoon because I have that morning to myself. I'm not burnt out and worn out and exhausted and be able to do some things.

I would guess it makes you more intentional with the calls that you do take too.

Yeah.

Because you're like. And not just like, yeah, go ahead, schedule it at 9 o' clock in the morning. No, no, no. If I only have two hours worth of calls, I got to make sure that my two hours are filled with really high value, high priority calls.

Exactly. We go from our calls to 30 minute to 15 minute, really fast on that. Let's, let's, let's make sure it's more active stuff now. How do, how do, how do guys out there get involved in the Fit Fatherhood? What's the best, you know, is there a website? Can you kind of go through the process? Is there like a, is there mentorship with it? Is there kind of like an onboarding, kind of coaching aspect of it? Dial a little bit more deeper into that.

The best way. So the, the best way to kind of dip your toe in this, in the water, so to speak, is to come to our Facebook group, Fit Fatherhood on Facebook. You can go to my website Here, Nathaniel, have sepian.com and the website or the Facebook group will be there. The Facebook group is free. It's just a community to come in. We try to give as much value in the community as possible. But ultimately we are coach dads for their health and wellness. Most of the people come in to lose weight. They're eating and they're not eating the best or they're sometimes they're not really eating at all. You know, they're drinking multiple sugary drinks a day. And so we're, we're working on that, but it's about being intentional with the time. Like we mentioned about the phone calls and it is a, I don't know if I mentioned it's a 12 week typically coaching and we do see a lot of people that stay on for 12, you know, for kind of further after that. Because wall, in 12 weeks we can give you pretty, all the tools that you need. Really I can do that in like five or six weeks. Hey, this is the, these are the tools you need. You need the accountability need the support you need the back and forth between, hey, this is what's working. You know, like I mentioned, a lot of people come in for, hey, I want to lose weight. Well, at some point this, the scale is going to stop. It's going to stop moving. And you can either accept that if that's what you want, or you can go, no, I want to hit this goal. Now what do we do? And so we bounce ideas off, back on, off, off of each other. Hey, this is what we've been doing. Maybe we need to tweak a little bit here. And so having that one on one, you know, coach that's able to go back and forth with you is really helpful. But long story short, fit fatherhood Facebook group.

Love it. I love it, I love it, I love it. But that's important and it's, it's great to have a passion and a true cause out there, just to spread the genius behind that, that, that you're doing and experience and the folks that you're helping. And that's awesome. You know, if you only do it for a month, I got about six months and driving into it. Yeah, I, you know, already checked my stuff out. I think it's important that folks have that opportunity out there and just accountability and in group and it's just, it's one of the most important things we have. We need as entrepreneurs, people about stuff off of there for. And especially, you know, military as well. Folks in the military, they're getting out of that. They need that really, that accountability, that group effort more so than anything else. So if you, if you fast forward, what's the rest of the year year look like? Any big goals for you here in 2025?

Yeah, well, we want to help 100 dads this year, so we want to get 100. And, and those are like coaching clients. Not just, hey, we helped 100 dads. We want to help 100 dads and make a significant change in their. In 12 weeks, you're a different person. That's really the goal. So that's really real estate. We're just kind of sustaining where we're at right now and, and trying to figure out. We're very blessed that we're able to go, hey, what path forward do we really want to take that is in connection with the values that. And the life that we've been building. So we're really, we're very fortunate there. But where I'm really focused and I really want to pour into is that, is that fit fatherhood is helping dads out? Yeah.

Awesome. Well, wealth and health are just as equally important to making it so it's been been an awesome episode once again. Best way to for folks to reach out to you is the website there for you?

The website will take you to any social media platform that you're on that you wish to connect with me with. That's probably the best place to go. Yeah.

Awesome. We'll make sure put that in the description of the podcast and the video. Daniel, this has been awesome, man. Been really, really enjoyable. Thank you so much for sharing your, your background, where you got into it and then kind of the journey and then obviously your passion's very, been very important for folks out there as well.

Yeah, thanks for having me.

No problem. All right, everybody take some action. If you're a dad that's looking a bit more fit or a man that's looking for accountability and want you to get some place on, check it out, Check out the website. Take what Nathaniel's talking about. If you're an investor out there, guys, take what he shared. He shared some amazing nuggets on how he's able to build what he's built and delegate some of the pain in the ass jobs to others that are more experts across the country out there. So go out there, take some extra money and we'll see at the top. Hey real estate investors, if you have ever wanted to dive into the sexy side of real estate and become a note investor and not just somebody that owner finances properties or buys and sells on terms, but somebody who's actually buying debt from lenders, mortgage bankers, hedge funds on distressed real estate on both residential and commercial properties, now is the perfect time. And guess what? We have our upcoming three day workshop here in just a few days on July 25th, 26th and 27th. That's right, that's a Friday. Saturday, Sunday. You can join me live on Zoom and our note Buying for Dummies workshop. We'll go through the Fs of how to find fund and flip non performing notes at huge discounts without having to use your own money. And we'll show you all the different ways that you can make money being a note investor. Day one's all about how we find these deals from banks, hedge funds and how you can automate the process of connecting with these people and get tapes and listen to you over and over again. Day two is all about raising capital and marketing and we'll show you how to tap into thousands of IRA investors who are looking for deals to fund and how to communicate and how to contact them and get them to fund your deals. And day three is all about the flip the exit strategies putting deals together. We'll mix in due diligence. We'll mix in the marketing side along with the structure side. So much stuff in three days. Live on Zoom with yours truly, the note guy, Scott Carson. Make sure you get signed up by going to Note buying for dummies.com or click on the three day workshop tab on our Workshop. Get signed up today as we're still running discounts and you too can soon become a no buyer.