How To: Purchase over $1 Billion in Notes with Scott Carson from the Passive Road to Retirement with

You have non performing notes and then you have performing notes. Non performing. You get a bigger discount because it's they haven't paid and so you buy that at discount performing that's going to pay. They paid on time. And depending on what that entry, the underlying coupon rate or the interest rate on the loan is kind of what your return is. But there's a kind of hybrid class that a lot of investors get into. This is really what we kind of chase and that's buying.

Welcome back everyone to the Passive Road Retirement podcast. I'm your host Andrew Jarrett. Our special guest today has been an active real estate investor and entrepreneur since 2002, focusing on niche of distressed mortgage notes. Since 2008, he's purchased over $1 billion in distressed notes on residential and commercial properties all across the country. He's helped thousands of real estate investors and entrepreneurs create wealth through his debt buying tactics and and classes helping his students close thousands of deals. He's also the host of the nationally syndicated radio and podcast Note Closers show podcast. An avid sports fan, he spends his free time traveling, gardening and making memories he calls Austin, Texas home. Scott Carson, thank you so much for.

Being here and Andrew, I am excited to be here, man. It's always good to talk about passive real estate investing to road to riches. I love talking about absolutely people money. Who doesn't like I need to, I need to pull up the sign on Ching here. There we go.

There we go. Love it. Love the energy, love it. So. So Scott, I guess for those who aren't familiar with you, maybe you can just give a little background and how you get into note buying and yeah.

So it's, it's an interesting kind of story. I like many people started off as a real estate investor back in 2000 when out of college bought our first house, bought a couple investment properties because it was you could fog a mirror and get approved 100% financing. And then I lost. I was laid off. They closed. Actually the company I worked foreclosed. My tenants, my two tenants got laid off from Dell Computers. I live in Austin, Texas, roughly all around here. And so I found myself as a deadbeat borrower. We're trying to make a lot of six mortgage payments on a private school teacher salary. Did anything I could to get my assets out of Sling. We sold off the two investment properties and then for about and for a couple years I was licking my wounds. Figured okay, there was that try whoopee do. I'm a great investor. I know everything. I grew up in a small Town and thought I could repair anything, fix anything. And then of course we love those fictional TV shows HGTV offers up.

Oh yeah, makes it look so easy, right?

Yeah, exactly. Well, Fast forward to 2004. I had a buddy of mine who was starting a mortgage company, a couple investors and they were traveling the country teaching creative financing to, to these big expos. The Ron Legrand circuit, I guess you could say we were on. And for four years while I was doing mortgages, I learned all the correct ways to do real estate. I was actually coachable in learning from a lot of the great folks that out there and then learned the note business from Bob and Jamie who were my mentors, Bob Leonadi and Jimmy Kayla. And then when everything hit The Fan In 2008, I left the origination side and then started buying non performing notes because God knows we had plenty of them in 2008 and beyond.

Right, right.

And so that's what I did. I just started calling banks, started getting list sent to me of their non performing stuff. I actually started off buying commercial notes first versus residential notes because I was seeing that first versus the, the residential very similar what's going on in the market right now, surprisingly. But I was buying like I bought a 20 unit apartment complex note. I bought a wholesale to 16 unit for $100,000 profit. Bought an 8 unit to 6 units, another 21, a 71 unit hotel that had been converted to apartment complex. We bought the debt at a huge discount. And then that's what I fell in love with the note business because I was like, man, I'm seeing deals way ahead of everybody at great discounts. And you know, that's Blossom now that we've, you say closed over a billion dollars in debt and it's been an amazing ride. And I really believe based on things that we see in the note business that the next 24 to 36 months are going to be a phenomenal time to. If you're, you know, with everything going on in the market. I know a lot of investors are looking for deals and you know, a lot of the markets have been overpriced. You know, to say lightly.

Yeah.

And we're seeing those corrections going on right now.

You know what I mean? Yep, absolutely. Now you had mentioned before you're looking at distressed hotel debt as well. Maybe you can, you know, give us a little insight on what you're looking at, what kind of discounts you think might be coming.

And so that's a great question because you know, I know your audience is big in the multifamily or syndications and performance stuff. So that's. Everybody calls, have you got any apartment debt? And I wish I could say yes, but it's really the most overpriced asset because the banks know that. But there are some, you know, mutations to that kind of debt. Class A student housing in some parts of the country is still distressed.

Right.

Depending on where. And that's a great place for the multifamily space motels. Your non kind of flag national chains are great opportunities to come in, pick that up and then either operate it as a hotel if you bought it cheap enough, or pivot it into transitional housing or multifamily. We've got a couple of our students are doing that. One in Gettysburg converting a 55 unit hotel into an apartment complex. You know, another one in Baltimore taking a 70 unit and converting it to a. And basically all they're doing is going in and putting, you know, hot plates and small, you know, you know, kitchenettes in these places because they're basically all set up already for everything else. So it's not a lot of rehab, basically, Right? Yeah, exactly. Efficiencies. But that's, you know, it's. I think that's where a lot of communities are lacking, is the affordable housing. And in some cases the cities are even helping the investors out because there's such a big need for it, whether it's putting homeless into it or they're leasing the whole space. Exactly, exactly. So we've seen some of that. I mean that's. It's a different animal on the debt side. You don't necessarily own the property. You've got to go through the legal process or get the borrowers to sign the property over, like a deed in lieu or a cash for keys or consent to judgment or you foreclose or give somebody to walk.

Sure.

And then you get. So it's a little bit longer process than that. But the fact that we're seeing a lot of opportunities in that, in the pricing, it's cheaper than what you would do to buy a traditional piece of property. I mean, we don't usually pay above 70% of as is value.

Oh, that's good.

And in a distressed asset, that's usually well below. And it doesn't take too much to regentrify these assets to get back to work. That makes sense.

Yeah. So do you. Are you actually negotiating with the banks as well for more of a discount or.

Oh, hell yeah, man.

Yeah.

And that's. And that's the thing. It's really I mean it's her miss with the commercial side. And because you may get the financials, you may not get the financials. It all depends on how friendly the borrower is. If you're not getting the financials then you get a bit of play of a bit of a Sherlock Holmes. I mean regentifying an asset. You're going to have your own kind of parameters anyway to operate that. But yeah, you're dealing directly with the banks and that's what really is nice in a lot of cases because you're dealing directly with a decision maker. They can tell you exactly what happened. You know, they've got financials from a previous year or two, you're seeing the servicing records and what's going on the aspect and the banks want to move the stuff off their books because with everything that's happened over the last two, three years, especially this time around, compared to 15 years ago, the banks, most more of the banks finance in the smaller balance stuff. And there's a, anything below 5 million is an opportunity for the most part because anything above 5 million Wall Street's trying to gobble up because that's really their minimum hurdle, right for a deal. Whereas we all know depending on what part of the country is, you could pick up an asset well below 2 million. A million bucks. And in some cases depending on how distressed the debt is and what the bank's portfolio looks like, the bank may even be willing to carry financing on that distressed debt.

Really? Wow.

To help to not lose a million dollar loan off their portfolio where they, where they now can replace a non performing note with a performing note. And look, it really changes up their balance sheets.

Yeah, win, win for everybody.

Yeah, yeah. And the biggest thing too, and I think a lot of people, they get into, they're like, well, I don't have a lot of experience really. The banks don't give a rat's ass about you if you've got a team. Okay. And so we've seen, that's one of the things that we've been, you know, working on. Like I, I don't have experience running a hotel, but I know people that do. So they're part of our management or our team, you know, and I'm not making 100% of the profits, but I'm making a nice fraction of that which works out really, really well. And it's, it's a, you know, that's the opportunity for everybody involved.

Now is there any like net worth requirements or liquidity requirements? Like in multifamily you have to have certain requirements to do the deals, anything like that. Or as long as not in the.

Debt space, not in buying the note. If you can come to the table. Now, if you're bringing money to the table and you're taking over the, I guess you could say the problem child of the bank. They're just like, is the wire gonna hit and stay, you know, through wire. But if, you know, if they're gonna carry financing, it's more of an reo. Pre. Reo. They're the kind of movie. Yeah. They're gonna ask, say, okay, you've got so many months of payments and what's your plan for the asset and what's your turnaround time? And the fact that they've owned that asset, they know how friendly that borrower is. They know exactly. Kind of most of the time they know what they've got in their books. You'd be surprised. Like, I'll give you a great example. This goes back a little bit, but like Capital One sent me a list of a 33 page PDF of every one of their sub million dollar loan balances. And it was all like six point font, so you can imagine how packed it was. Okay. They send me this list, I'm looking through it and there's one in Miami, Florida, a 73 unit apartment complex. I was like, oh, I like Miami. Viva la Miami. You know what I mean?

Right? Yeah.

So I called my agent and I'm like, listen, can you drive by this property, take some photos for me so I can get a bid in? So he drives by and comes back and he's laughing. When he gets on the phone, he's like, dude, this is the biggest crack house I've ever seen. It was like crack, it's like crack house Vogue, you know, they were all striking a post, you know, like I seen a Dave Chappelle show, you know what I mean? Tyrone Biggins. All right, Tyrone Biggins. So I send, I get the photos, I laugh. So I send him the ask manager and, and no later than like 15 minutes, I get a phone call from Capital One, my asset manager's there. And I can hear everybody in the background laughing at these photos. And she's like, yeah, it's a piece of crap. We thought it might be, but they're out of New York, you know, they had no clue. She was like, what do we have to pay you to take this acid over? I was like, there's not enough, right? Yeah, but you know, that's the great. Sometimes I know, sometimes I don't know. And that works in your favor by being able to fight it. And you know, we see that's the beautiful thing about the note business is that we see stuff all across the country and some people get very tied into the real estate. Oh, I just want to invest locally. Well, if you're in a market like California that's overpriced, or you're in a state like New York that takes forever to foreclose, you may not want to be investing. You may want to look for other opportunities. And that's the beautiful thing about what's so great about this market compared to 15 years ago, is there's more resources, there's more vendors, and more of an easier. It's easier to build a network of people to help you with your due diligence more than anything else.

Yeah, yeah, yeah. I agree with New York. I've had to foreclose up there before. It's not fun when you got to.

Hire an attorney to talk to the attorney, to have an attorney. It's not fun.

No, not at all. Not at all.

And here's the thing too. I'm so I got a portfolio of apartment loans, like anywhere from like a six unit to like 100 units. And the seller is wanting 70 cents on the dollar to sell them. Nobody bought it because they're like, that's great, but nobody's going to pay us.

Yeah, the tenants don't even have to.

Yeah, that's what I'm saying. Those tenants have figured out the game, you know.

Exactly, exactly. That's funny.

You know, pay, you still stay.

Yeah, exactly. And definitely at this point.

Yeah, exactly.

Good times we've got. So a lot of our listeners, you know, they like to know what is for somebody just starting out, maybe they have a W9 or, you know, what would be your top strategy for creating their first passive income stream?

Oh, that's great. So you gotta look at your risk and what you're comfortable with more than anything else. And if you're passive, you don't want to have probably a lot of risk. So there's a couple things. Like in our space, there's you have non performing notes and then you have performing notes. Non performing, you get a bigger discount because they haven't paid. And so you buy that at discount. Performing notes, going to pay. They paid on time. And depending on what that entry, the underlying coupon rate or the interest rate on the loan is kind of what your return is. But there's a kind of a hybrid class that a lot of investors get into. It's really what we kind of chase and that's buying the non performing and getting the borrower back on track. Because if you, let's give it a great example, let's say $100,000 house, they owe 110 the interest rates 5% they haven't paid in a year. We Maybe will pay 50 cents on the dollar of value. Not they owe more than the house is worth.

Right.

So we'll pay 50 grand. Well if it's at a 5% interest rate that's now like a 10 to 10.2, 10.3% return on investment for us if we get them back on track.

Right.

And that's what we do as not investors. We buy non performing, get them back on track and then turn around to sell it at 80 to 90 cents on the dollar back to the market or to other investors. That would be a good yield at that point to somebody. Okay, so that's a great way. I mean it depends on what you're looking for. Money's making zero or it's in a you know, certificate of disappointment, you know, making point.

Right. You know, or you got 0,01 or whatever.

Exactly. You got a 401K. That's a now 101K. That's a great way to put something in performing. There's servicers to collect for you. You might pay 20, $25 a month for a third party servicer to collect your monthly mortgage payment and handle the statements. That's it's well worth it. But that's where I would look at. I mean most people think you get the nook space and, and we've been talking about commercial you got to have millions of dollars to dive into it. And that's not the case. We've seen actually a big influx of apartment investors that got 50 grand or 100 grand. It's not enough to take down a prop, you know, an apartment but it's something they can buy a non performing note or two or three or a performing note that was once non performing that they're getting A you know, 8 to 12% return on their money passively.

Yeah.

And that's kind of the, if you got some money you want to dive into it, great. It's a different asset class. Just like if you're buying an apartment versus a self storage or a hotel, you really need to know what's going on because a lot of people oh hey, I can't find a fix and flip. I'm going to buy a note and I'm going to value you can't value it like you're buying a piece of real estate. You got to evaluate like it's a pre performing or non performing note and it's a whole different asset class. Like you may not end up ever with a property. Yeah. Which is good.

Yeah. You want the payments, right?

Exactly. And everybody. Here's the thing too. Everybody's, everybody's already in the note business. They're just on the wrong side of the payments. You know what I mean?

Exactly.

So you got to realize that. But there's opportunity out there. I mean, we have these once every 10. You know, if you think back before 2008, you had the late 80s with the savings and loan scandals and a huge amount of that. It's just kind of the market correcting itself. I always say, look, if you don't have at least 20% equity in your deal, whether it's residential, commercial, you might want to start looking. Because if the market does go further south like it is in other areas, you may not be in the black anymore. You'd be maybe in the red. And especially as apartment syndicators, you know, the banks don't want to be above 60% LTV. And if you've had tenants that aren't paying, then your, you know, your net operating income is reduced, your cap rates reduced, your values reduced.

Yeah.

And while that may be a bad thing for you, it's also an opportunity because your competitor may be doing the same thing as an opportunity for you to pick up some of those assets.

Yeah, it's true. Absolutely. Now, for somebody that starts out, maybe they don't have any money at all or just a few thousand, maybe. Can they do any kind of wholesaling like they can on real estate? I mean.

Yeah, oh yeah, you can wholesale note all day long. Like a piece of property. It's all about getting it under contract and then selling it off to somebody that'll pay you a flat fee or percentage. I mean, we've had wholesaling fees on our side from 500 to 100 grand, which is not a bad day.

Yeah.

You know, here's the biggest thing though. If you're going to wholesale, to be a good wholesaler, you've got to market. You market in the deal, you know, in the deal you're doing the due diligence and then you're sharing it. We have always found that if you change a couple words in your marketing or the mindset, instead of wholesaling it and looking just to get a little bit realizing that your wholesale buyers are also Great funding partners.

True.

And staying involved for half or staying paying them 8 to 12% return to fund your deal. There's a ton of private money sitting out there that those folks would rather write a check and get an interest rate versus do the work themselves. So if you're wholesaling, yes, you can do that, get started. But you're leaving a lot of money on the table for just flipping.

Exactly. Generational wealth. I mean well that's the thing, right.

It's that whole aspect and you know this with your show and everything like that is passive income. If you just wholesale, you make a check once, whereas monthly, you'd rather have something monthly. And as John Goodman said in the Gambler have f you money man.

Right, Exactly. That's right.

Sorry about that. I didn't drop the F bomb.

But no, yeah. No, it's funny now Scott, if you could go back in time right to your 18 year old self, knowing what you know now especially what would you tell that that young man or what would you change?

You think man, 18. So you gotta set the, we gotta set the, the image of the time frame. At 18 I was, I had a full academic and athletic scholarship, played college football.

Oh wow.

So I was, I was smart, I was a smart jock basically. But I, my dad was, my mom and dad were entrepreneurs. My dad was an entrepreneur until he passed the hardware store, stuff like that. It's the thing is, I think is being be coachable. I think one of the biggest mistakes I made in real estate was just jumping and thinking I knew everything. Yeah. That kind of thick headed all, you can't teach me anything. These days I listen to podcasts or YouTube. Well that's great.

Back then, right?

Back then they didn't exist but these days it's the same thing. Get coachable. Surround yourself with like minded people. Get rid of the, the Debbie Downers if you can. You know there's plenty of that especially in today's world. There's so many negative people out there that are just a holes, you know, they're, they're always something bad going on. So surround yourself with like minded people. You will go faster as, as coach P.J. fleck from the Minnesota Gophers like to say university misses row your boat in the same direction, you'll get there faster, you'll accomplish a whole lot more. And I think I did a lot of things on my own early on when I should have done looked for a group and been more coachable.

Yeah, I totally agree. Yeah, I don't even, not even Watching news anymore if I, if I can help it, you know, it's just too.

Depressing, you know, it totally is. And it's all. And if you look at everything, it's all the same thing. They're not really paid to provide, to provide their definition or their outlook on the news. Not a non biased thing. So yeah, I read a little bit from USA Today, a little bit from cn, a little bit from Fox. Going to make sure, you know, okay, then I make my own opinion that the truth is somewhere in there, right?

Yeah, exactly. Or far to the other side, who knows?

Yeah, exactly. Exactly.

These days. So you've been investing for a long time. So every investor usually has one deal or several that don't go as planned. Maybe you could kind of speak to that one deal that didn't go as you thought it would and what you learned from it.

You know, I'm gonna throw. Something that happened recently is we had a couple deals that drug on a lot longer than expected. Obviously with COVID you know, we couldn't foreclose, we couldn't evict, and we're sitting in a holding pattern. We're just now getting to the point we're able to progress with that. The beautiful thing is we bought those assets cheap enough that we were able to, if we need to. We refinanced out one investor's money with somebody else's so they were interested in being in a longer process. The beautiful thing about notes is usually buying them cheap enough that you got to dump them. You can dump them and still come out spend. Okay, but that's real estate isn't about every deal going straight. If you're talking to investors never had a bad deal. We know they're not really. They're a one investor kind of thing.

Exactly. Yeah.

But the thing is you can't. Well, the thing that always kept us on the look, we're doing deals on a constant basis. If you have a couple deals that go south, how you can make it up with other deals and go from there. And the worst thing that you can do as a real estate investor if you're in a bad deal is first of all, not talk to your mentors, pick up the phone and call them because they can help you. And secondly, keep doing deals because you can always listen, I'm gonna just trying to close this deal out, Mr. Investor. I'm getting you back all if not or a bunch of your money or whatever it is, I'm gonna put you on this other deal to make things happen. And you Know, we've got a deal right now. It's a phenomenal deal. I mean, we're going to come out smelling like roses on this thing. But it's taken six, six plus months longer than we expected. And communication is when they keep the investor, he's like, no, I'm fine. Thank you for the communication. We set our expectations for July. Well, it's going to be January. Okay. It happens. The beautiful thing is the properties appreciate another 200 grand in that timeframe. Okay, we'll take the 200 grand. Yeah, exactly. But the big keys is don't get down yourself, pick up the phone, talk to your mentors because look, everybody's gone through it.

Right.

You know, is why it's also, I think, so important to evaluate your investors too. A lot of people think it's just a one way. Oh, the investor is evaluating you as the operator or the person or the funders. You need to. In today's crazy social media world, you got to. How are people talking when they've had a deal go south? Are they suing Sue Happy? Are they? Let's get on Facebook, invent everything.

Right.

You know, it's important to do that. So I think NDAs inside of your agreements are one of the most important things you may have.

Yeah, that's a good point. And like I said, communication is key. You know, if something's going wrong, don't hide. You know, just be upfront and, and disclose everything. I think.

Yeah. And you know what? You're not going to make everybody happy, but you've got to stick to your guns and go from there. I mean, that's why asset protection is so important, LLC having a good attorney, because at some point you're gonna get sued. I mean, you could give. Do all, everything you're right and deal still go south. Or you, you know, somebody thinks you're gonna get 12%, you give them 11 and a half and they get upset for that half.

Exactly Right.

I had, I had, I get, I had a deal. Two deals in Miami, down in Cape Coral Gables. These two notes on two condos and the David Williams Hotel. Historic day. And we bought them cheap enough and then we had an attorney reach out to us, Hey, I live in the building. I want to buy these two from you. And we agreed up on a price. Well, I couldn't find the collateral files. I was looked everywhere in my office and reset my servicing. The files weren't there. I never collected a dollar from the guy. And I communicated back to, I was like, listen, I can't find these. I can't close this deal with it, so I'm canceling the contract. And he's like, oh, I know you're selling to somebody else. You're going to like. No. Three months goes by, I show up in Miami and I get served. And I'm like, what? And I look at it. He was suing me for the 90 grand in Lost profits he never got. And I'm like, really? Okay, great. My attorney takes in and gets kicked out of court immediately because the judges look at the guy. He never collected a dollar from you. And he communicated that he didn't have the files and everything like that. Well, I think he did that well. It got kicked out. So don't. Don't be afraid. Sometimes, a lot of times, lawsuits can be settled or negotiated with, but make sure. Don't. Especially in syndication stuff. Make sure you pay for your good attorneys.

Even in a fantasy world. Profits, right?

Yeah, but some people. But that's a crazy world that we live in these days. Everybody thinks they're entitled to something. You're not entitled. It's an investment, not a guarantee.

Exactly. Yep. Hundred percent. So, Scott, if there was one thing, one takeaway for the audience to absorb from this episode, what do you think that would be?

Well, go by notes would be the first thing.

Yeah.

So, you know, people compare me to. If you ever want a great movie, Vanilla is watching the big short out there.

I love that movie.

I am like the Christian Bale character with the good. With both good eyes. Okay. But I'm usually in shorts and a T shirt most days. And that's kind of what we do on a much smaller scale. But the biggest thing is look for opportunities. We all know markets are changing on a regular basis, and if you're in an asset class that's getting overpriced or in a market that's knowing things, you got to learn to pivot. And the best thing you can do is reach out to professionals or other people. Hey, what are you doing? Or where do you see the opportunities going? Don't trust what the media is telling you because everybody's all, the market's crazy and keep going up. They're all. All your realtors are looking at the last month or last quarter. They're not looking forward. So you got to really know your numbers and go on. But, hey, reach out. Look, there's opportunities everywhere we look. And that's the thing, is you're in the debt business. You might as well be on the payment stream side versus the pain outside.

I Like it. I like it. So if anybody's interested in learning more about Notes, Scott hosts a weekend course, www.noteweekend.com. he's been very generous and waived the access fee for our listeners. If you use code prtr, you can get the Saturday class and the replays and over $1,000 in bonuses. I don't know if you want to go into any more detail on that about what people can expect or.

For free, you know, Exactly.

Can't do that.

No. And it's, it's, it's the Cliff Notes version of Note Invest. If you want to learn note investing or learn more about this asset class without having a big investment, it's a great, great starting point. Dip your toe in the water. It's me teaching, me teaching. For around six to seven hours, we go through how to find deals, how we fund them, and then the ways to make money or flipping our exit strategies with it. You know, we teach this monthly, so if you can't make it one month, you can always bump to the next month. But it's, it's designed to give you a good broad overband. You're not going to learn everything about notes in one day, but it's a, it's a great way for you to kind of get the feet wet. And I love what you're doing. So that's why we're glad to offer it up at no cost. But like I said, if you go to noteweekin.com code is PRTR. That's all caps P RTR you'll get in for free.

Awesome. And before we get into our five to thrive, if people want to reach out and learn more about you or, you know, get access to you, what's the best way to contact you?

Yeah, you can go to the website. We close notes dot com. That's the mothership that's got a about our podcasts, our webinars, or teaching and other deal flow. You can always schedule a call with me by going to TalkwithScottCarson.com that's TalkwithScottCarson.comthat'll take you. Breaking my schedule. Always glad to spend 30, 40 minutes with somebody, letting them pick my brain or asking if notes. Now, notes are not for everybody. I'll be the first person to say, hey, you're not a fit, or you might be a fit, or here's how to kind of depend on what your experience is because everybody's different. But yeah, feel free to reach out to me that way. TalkwithScottCarson.com, always glad to talk and talk real estate.

Great. All right, so now we're getting into our five to thrive, which is more of a word association game. So it's just all rapid fire, five words. And just respond with the first word or phrase. They come to your mind.

All righty.

Only. Only rule is you can't repeat your answer twice.

Okay.

All right.

All right. Sounds good.

All right, here we go. So the first one is wealth, success, financial freedom.

Travel.

Ah, I like it. Attitude, bulldog, investing.

Freedom.

And we close notes.

The number one investor recommended website for note investing.

Love it.

Plus, I mean, you think about. I think it's all. We enjoy traveling and I think the best thing. And we all are working for something out there. Right. Whether it's retiring yourself, your spouse, your family, putting your kids through school, or just having a better way of life. And one of the things that I think success is designed in everybody's own. Success means something to you differently than it means to me.

Right.

And I love these questions that you ask every time. Somebody making $2,500 a month on passively can be retired themselves versus somebody making 10,000. All depends on what your overhead is and things like that. Exactly. Your lifestyle is all dependent on what you do. I got a buddy that loves Bud Light and ramen noodles, so his overhead costs are. You know what I mean?

Exactly. Then I got tired and drink Bud Light and eat ramen noodles all day.

He's happy. Yeah. A big night out is a 12 pack of hot dogs, you know, but that's just. That's just his. His attitude. That's totally fine.

Yeah.

And that's. And then I think mindset is such a big key. I think we as entrepreneurs have to have a thick skin and a can do. We were talking about this beforehand, before recorded by how it's so important that things go wrong every day. You just got to have a thick skin and realize, hey, okay, what's next? Or how do I fix it and solve the situation? And most of the best opportunities, I'm sure you agree with us, have come from mistakes or things that didn't go right the first.

That's how you learn.

Amen to that, brother. Amen to that. And guys, I want to throw this out here, guys and gals, you know, Andrew's kicking ass and taking names. So, you know, one of the things we love as podcasters is for us to hear from feedback from our audience. So go. While you're listening to this, hit that subscribe button and make sure you hit the five star review and leave a five star review. You don't have to like me, but you love Andrew, so leave him a five star review. We love to hear that feedback. He didn't pay me for that. But he's probably gonna drop a check in the mail.

Yeah, exactly. That's right. Well, I appreciate it, Scott. This has been a pleasure, a lot of fun.

It's same here, man. You know that we as honestly, the world is so screwed up, especially the world in the United States here. And I think we as entrepreneurs, we as business owners, we as real estate investors, we are the group that's going to change it and help build the make. I say I make. We're making America great again. One default to bar at a time. So go out there and make your house, your neighborhood, your city as best you can. If you can. Help people. What we're doing, that's what's so great about real estate. You make money by helping people.

Exactly. Couldn't agree more.

Awesome.

All right, we'll talk to you soon.

Thanks for having me.