\n<\/p>\n
Want to become a real estate millionaire<\/strong><\/a>? You\u2019re in the right place. No matter how much money you\u2019re starting with, how much experience you have, or how many Seeing Greene episodes you\u2019ve watched, it\u2019s ALWAYS possible to build wealth through real estate<\/strong>. But that\u2019s easy for someone like David Greene<\/strong> and Rob Abasolo <\/strong>to say, right? They\u2019ve already made it big, with millions of dollars in cash-flowing income properties. But they didn\u2019t start like this.<\/p>\n David and Rob have come together to ask themselves, \u201cwhat would we do if it all came crashing down?<\/strong>\u201d If both of them lost their entire real estate portfolios in one fell swoop, how would they build it back up? Today, we put these two real estate legends in the hot seat and give them the biggest nightmare scenario<\/strong> so they can show you exactly how to build a real estate portfolio from scratch<\/strong>, no matter where you\u2019re starting.<\/p>\n David and Rob will also be given certain dollar amounts to use in rebuilding their portfolio. So, if you\u2019ve only got a thousand bucks<\/strong> on you, David and Rob will show you exactly how to use it best to catapult your wealth forward <\/strong>so you can become a real estate millionaire. If 2023 is going to be YOUR year to get started, get going, and get one step closer to <\/strong>financial freedom<\/strong><\/a>, we\u2019d suggest following David and Rob\u2019s plan!<\/p>\n David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: Rob: David: \u00a0<\/p>\n<\/div>\n Help us reach new listeners on iTunes by leaving us a rating and review! It takes just 30 seconds and instructions can be found here<\/a>. Thanks! We really appreciate it!<\/p>\n Interested in learning more about today\u2019s sponsors or becoming a BiggerPockets partner yourself? Check out our\u00a0<\/em>sponsor page<\/em><\/a>!<\/em><\/p>\n Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n
This is the BiggerPockets Podcast, show 706.<\/p>\n
In my opinion, real estate should\u2026 It\u2019s fun making money, but real estate should never be fun because you should never be making that money and using it. You should be reinvesting it. And that\u2019s not fun, that\u2019s actually discipline. It\u2019s like, \u201cYes, I like making the money, but it really hurt.\u201d I\u2019m like, \u201cOh, I felt like I could just use that $5,000 I made this month on this tiny house.\u201d That would be really fun, but I have to force myself to say, \u201cWell, sorry, Rob. Got to put it into the next property or into reinvesting in that property.\u201d And it\u2019s fun.<\/p>\n
What\u2019s going on, everyone? This is David Greene with my co-host, Rob Abasolo who you just saw trying to match me with the 706, which is harder to do than you would think. And one of the reasons I\u2019m the host of the show because nobody could get the hand gestures right. That\u2019s right. You\u2019re here at the best, the biggest, the baddest real estate podcast in the world for a pretty cool show. It\u2019s going to be Rob and I solo today talking about what we would do if we lost everything and had to start over with no money and no houses in 2023.
Today\u2019s show is very fun, very insightful, and very thought provoking, if you will, and hopefully very inspirational for you. Rob, how are you today?<\/p>\n
Good. As you were saying all that, it made me think of a show idea. You know how you do the Seeing Greene? What if I did my own version of it called the Robert Abasolo solo show? The solo-solo BiggerPockets show. Solo two.<\/p>\n
So you\u2019re trying to get rid of me is what you\u2019re saying?<\/p>\n
No, no, I\u2019m just saying you do Seeing Greene. I think it\u2019s time for the solo-solo show, the solo two.<\/p>\n
Abasolo show?<\/p>\n
The Abasolo solo show. But maybe you can still be a part of it. I just really like the name.<\/p>\n
Yeah, I just want to hear you talking solo that I don\u2019t have to hear you and we\u2019re going to be good. Right?<\/p>\n
Okay. Let me do this.<\/p>\n
Make sure I don\u2019t like\u2026<\/p>\n
The solo, solo, solo show where I have to talk like this the entire time.<\/p>\n
That would be really good. It would only be like a four-minute show because your voice couldn\u2019t handle anything longer than that. That\u2019s good.<\/p>\n
Not really, no.<\/p>\n
All right. Before we get into today\u2019s show, a quick dip. What if I had to do a whole show in the Batman voice? That\u2019d be something else. You\u2019d really think about your words a lot more if it took that much effort to say all of them.<\/p>\n
Welcome. Welcome to the BiggerPockets show 710.<\/p>\n
And had to wear a mask the whole time as if you didn\u2019t know who it was. Quick tip for today, what are your challenges? Write them down and think through solutions for them. You\u2019ll quickly see avenues that you didn\u2019t think about. I want everybody here to actually stress test their own life. What would I do if I lost my job? What would I do if I lost my spouse? What would I do if I lost my money? What would I do if the investments went bad? What would I do if we didn\u2019t have food I could go get at the grocery store? This stuff is scary and cause some anxiety, but that\u2019s okay because coming up with solutions will help build your confidence and help you be prepared for situations that we don\u2019t know could be coming.
We\u2019ve been lucky and blessed in this country to have a long run of a very, very healthy economy, but nothing\u2019s guaranteed. If we learned anything from COVID, it was that. So take some time to stress test your life, your portfolio, and your goals and make sure that you feel good about them if everything doesn\u2019t go perfectly. With that, let\u2019s get into the show.<\/p>\n
All right. Welcome back to part two of the demise of Rob and Dave. Episode one. That\u2019s right. Hey, you\u2019re doing the mirror thing on the\u2026 Okay. I like it. You\u2019re pulling a Rob. I like that. So in the last episode, just to recap everybody and level set and get everyone on the same page\u2026 Don\u2019t make my hands\u2026<\/p>\n
Kind of fun.<\/p>\n
Don\u2019t take away my thunder here. So to quickly recap. Last episode, we talked about how our portfolios could basically crumble into oblivion. We talked about the ability to triage, which is a very fancy word of saying, could we sell off part of our portfolio if needed, or how liquid are we in our portfolio if we really needed to exit that? And then also how to actually assemble the architecture of our portfolio and how to strike a good balance between things like cash flow, debt, scalability. Dang it. I already messed up your-<\/p>\n
Ease of ownership?<\/p>\n
Ease of ownership. And then is there anything else?<\/p>\n
And liquidity.<\/p>\n
And liquidity. See, I knew that. I just wanted to throw you a softball. So today, we\u2019re going to be picking up that conversation and talking about part two. What if we lost it all? What if we went down to zero? How could we actually rebuild our entire portfolio? We\u2019re going to set some ground rules here. We still have our mind. We have our current knowledge. We\u2019re still ourselves, but if we lost everything and it was just stripped away from our empires, how could we get back? How could we go from zero to Rob built and David Greene hero? So I\u2019m excited, Dave.<\/p>\n
Yeah. This is one of my favorite things to do. I\u2019ve often asked myself the question\u2026 You know that show Naked and Afraid? You\u2019re dropped off in the middle of a jungle or something. You have no idea what you\u2019re going to do. I\u2019ve asked myself, what would I do if I had all the knowledge I have now, but none of my resources and you just dropped me into the middle of some city that I\u2019ve never been before. I\u2019m homeless, I don\u2019t have any friends there. Would I be able to build wealth or would I just become addicted to drugs? So these exercises are kind of fun. And so now we\u2019re going to do it with our portfolios.<\/p>\n
Yeah, man. So let\u2019s get into just the first aspect of this and we\u2019ll build to it. But I wanted to just start today\u2019s show with just asking what are the biggest challenges that you\u2019re facing right now, both emotionally, but specifically from a real estate standpoint, and is there any pitfalls that you\u2019re currently encountering that that might lead to something like this?<\/p>\n
Well, this could easily turn into a therapy session for me if we\u2019re not careful, so you\u2019ll have to cut me off. But as far as the pitfalls that I\u2019m going through, we have the market changing incredibly quickly. So pretty much almost all of the sources of income that I have come from some form of real estate. So my real estate sales team not selling nearly as many houses because the market has turned around. Rates are super high. A lot of buyers are wanting to wait to buy and a lot of the investors can\u2019t make deals work because with the rates being high.
Even if you could get in contract, you can\u2019t make a cash flow. Then you got the mortgage company, that\u2019s the same thing. You can only qualify to buy a house off the debt to income ratio. So as rates are going up, it becomes harder to get people to be approved to buy the level of house that they have to get a seller to sell it. So income is going to be down there too. Well, all my employees are now making less money, and as you can imagine, people are not super happy about working harder and making less money.
So a lot of the character flaws that are present and all of us tend to not get exposed until times get hard. That\u2019s one of the quotes that Warren Buffett has. When the tide goes out, you see who\u2019s been swimming naked. So you\u2019ve got all the personnel issues that you\u2019re dealing with as the tide has gone down, the market is not doing good. Then I\u2019ve talked about the 1031 that I was kind of forced into in a very quick timeframe. So I bought almost 20 properties. Maybe there was 20.
At the end of the day, almost all short-term or mid-term rentals across the country, massive problems with the rehabs employees that I had to let go of that quit that were managing these things that weren\u2019t. I had to switch my CPA in the middle of all of this and my bookkeeper. So I\u2019m every single week having to meet with bookkeepers to try to figure out what properties are profitable and what are not. Getting my taxes ready for the next year, and creating equities to hold all these properties in. Those mortgage payments still have to be made over and over and over. Then you throw in neighbors that are complaining about the construction that\u2019s going on or that don\u2019t want a short-term rental next to them. So they keep on calling the city to complain about nothing, which just means we have to now deal with more and more headaches.
And there\u2019s more than that that\u2019s going on as well. There\u2019s a lot of things that are tough in life right now. So this is the perfect time for us to get into the fact that making money, especially making money in real estate is not always fun. In fact, it\u2019s not often fun. It\u2019s not glamorous all the time. You will hear the glamorous side of it when you\u2019ve got a slick marketer trying to convince you to follow them on social media.
They want your attention. They want your subscribes. They want your follows. They\u2019re going to tell you about the part of real estate that\u2019s great. And then people get into it assuming that\u2019s always the way that it works. And then when it doesn\u2019t work that way, they think there\u2019s something wrong with them or they think they weren\u2019t meant for this and they get discouraged. But that is not the case. Even the people that are the best in the world are constantly sloughing through problem after problem to get to that cherry at the top of the sundae.<\/p>\n
Yeah. I mean, like you said, in my opinion, real estate should\u2026 It\u2019s fun making money, but real estate should never be fun because you should never be making that money and using it. You should be reinvesting it. And that\u2019s not fun. That\u2019s actually discipline. It\u2019s like, \u201cYes, I like making the money, but it really hurt.\u201d I\u2019m like, \u201cOh, I felt I could just use that $5,000 I made this month on this tiny house.\u201d That would be really fun. But I have to force myself to say, \u201cWell, sorry Rob. Got to put it into the next property or into reinvesting in that property.\u201d And it\u2019s not fun. It isn\u2019t. But in 65 or when I\u2019m 65, I should be having fun on my jet ski and realize my life dream of owning a jet ski on the beach, David.<\/p>\n
That\u2019s exactly right. We talk about money being energy or really a store of energy. Energy that you\u2019ve already accumulated from work that you did or previous investments that you made. The more of that energy that you can keep in your portfolio, the faster it will grow. The more of it that you pull out to fund your lifestyle, the slower that wealth will build. Now in your world, Rob, tell me about some of the pitfalls that you\u2019re having with your real estate business.<\/p>\n
Yes, okay. A lot. I would say right now, this is being solved for thankfully, but a big pitfall that I\u2019ve had is just not having cohesive bookkeeping in accounting. Now we had Matt Bontrager from TrueBooks on. He is my accountant and they are now doing my bookkeeper. That is solved. They\u2019re doing really great. But actually last year for 2022, I had three\u2026 Oh, sorry, for 2021, I had three separate CPAs filing all of my taxes. I actually had four technically because I had all these different business partnerships and all of the partners were the ones that handled the taxes.
So my main tax accounting firm needed the taxes from everybody and they needed the tax. Oh, it was a big mess. But I have now fired all of them and Matt is now my sole CPA at TrueBooks. Now, they\u2019re doing all my bookkeeping. So that\u2019s going to solve a lot of the questions that I have day to day on what\u2019s the true profitability? Because the way some bookkeepers track your accounting is just different than others. So that\u2019s a big one. Another one is, this is probably the biggest problem that I face in my entire portfolio and it\u2019s that I don\u2019t have enough people on my team.
I\u2019ve been very, very, very conservative and very slow to hire and that\u2019s probably a good and a bad thing. But it\u2019s been a bad thing for me because it really does slow down how quickly I acquire things. I\u2019ve got a lot of plans to acquire properties and I see properties come across my desk all the time, but I honestly turned them down almost automatically whenever I think about the logistics involved with actually setting them up, just because I\u2019m so busy with all the other miniature empires that I\u2019m working with.
So on the real estate side, we\u2019re a very slim team. On the content side, I\u2019m a very, very, very scrappy team. It\u2019s me and my editor. All the content that you\u2019ve ever seen me post is just two people. It\u2019s me and my editor for the most part. I write my own captions. I make my own Instagram reels. I do all my own posting. I respond to all my DMs. And some people at home might say, \u201cHey, how is this relevant to real estate?\u201d
Well, my YouTube content, all my content fuel a lot of my real estate because that is my funnel for working with investors that approach me to invest half a million dollars. They find me off of YouTube. So that is a big fuel source for the acquisition part. But then I run into, \u201cOkay. Well who\u2019s my team?\u201d I\u2019m just now finally realizing that the thing that I\u2019ve really needed to come to grips with is I need to force myself to make less money in the way of hiring more people.
Because hiring people are going to\u2026 It\u2019s going to cost me a lot of money to hire them, but by that costing me money, it will actually make me a lot more money because I can scale up much, much, much faster. And so the big problem with my empire right now is that if I have a sick day, everything shuts down. If I were to die, it all crumbles. And this is actually a big stress point for me because if I were to not be around, not to get too morbid here, but we should probably talk about it a little bit. My wife doesn\u2019t really know the inner workings of my portfolio and there aren\u2019t that many people to run it.
My wife does not want to run my real estate portfolio where things to go that way. And so I\u2019m having to now really focus and restructure my company to place more, I don\u2019t know, more generals if you will, to run it for me so that if I\u2019m sick I can actually take a sick day. Because right now if I\u2019m sick, I don\u2019t take a sick day. It\u2019s even so bad now that when my wife is sick and I have to take care of the kids, for example, because she watches them on Tuesdays and Thursdays. That\u2019s really tough for me in the business because then there\u2019s no one to answer all the\u2026 It\u2019s just a whole thing.
So I\u2019m staffing up. I\u2019m actually hiring a five-person content team. I\u2019m going to have two full-time editors. My full-time editor now I\u2019m promoting him to content director. I\u2019m hiring a social media manager and a content writer. I\u2019m doing that. And then I\u2019m going to have acquisitions people on the real estate side. I\u2019m launching a fund where I\u2019m basically going to have seven to 10 people running the empire for me. It\u2019s a whole thing. I feel like I just rambled here for five minutes, but it is a very real pitfall that I\u2019m facing right now is just scaling and being able to hire and having the confidence to do so.<\/p>\n
Okay. So if this is your plan, tell me about some of the ways that this could go wrong and could all crumble around you.<\/p>\n
Well, I think for me, the reason I\u2019ve been so nervous about hiring is I\u2019m always\u2026 I have this very prideful and stubborn thought that I cannot hire someone to do a job that that will be better than me. Right? Because I\u2019ve really good at the things that I do. And so it\u2019s hard for me to hire someone even though I know that there are millions of people out there that are way smarter and more capable of doing the job than I am.
So I think my big fear of something going wrong is hiring someone that will not be able to pick up the slack and carry the torch forward and then that will effectively just cause structural issues within the business, if that makes sense.<\/p>\n
Okay. So what about the properties that are going to be buying for you? What are some areas where you think your acquisition team could make some mistakes or the operation side could let things slip to the point that you lose money?<\/p>\n
Okay. So I will say that for 2023 I am going to be more aggressively purchasing properties. I know a lot of people right now want to take the conservative route on that and that\u2019s totally fine and commendable for those people. I see things a little differently right now. I think that we\u2019re about to see some really huge discounts. I was very busy this year and I did buy properties, but not as much as I wanted to. And now it works out because now I\u2019m seeing all these discounted properties and I\u2019m going to go in and snap them.
So I think probably the pitfalls of this are going to be that I need my team and the acquisitions team that are running this for me. I need them to be really good at comping conservatively. I\u2019m actually comping out all of my properties in an incredibly conservative manner that leaves a lot of room for error basically. I didn\u2019t used to do that. I\u2019ve always been very aggressive with my analysis. Most of the time I\u2019ve been actually relatively correct, but now we\u2019re sort of switching it over. So I\u2019m just more right now weary of trusting the acquisitions team to be as conservative as I want them to because I think we\u2019re actually in a time where we have to be the most conservative we\u2019ve been in probably the last 10 years is my guess.<\/p>\n
Yeah, that makes sense. I mean, I wasn\u2019t as upset with people that were riding aggressive offers the last six to seven years as others were because it was pretty clear to see that prices and rents were going to continue to rise. I think that you probably lost out on more gain than you protected yourself from loss if you were riding very aggressive offers when there was this much inflation happening. If you go back five or six years ago, someone would write an offer that a conservative guru could call a fool who made $200,000 and 80 grand a year on that property because they wrote aggressively.
But it\u2019s difficult to see that trend continuing from this point forward with how concerned the government is with trying to slow down inflation. So as long as rates keep going up or stay high, they\u2019re trying to push the cost of assets down versus where they were trying to create to print more money, which makes the cost of those assets go up.
So I do think you got to be able to pivot. You got to be able to be understanding that you need to stay high volume, you need to stay aggressive, but a conservative approach makes sense in this market. You\u2019re not leaving money on the table anymore, being conservative. So I think that\u2019s wise. Do you have any concerns about turning things over to other people in your business as far as who\u2019s going to be doing the acquisitions?
Are you still going to be looking at every single deal before it\u2019s bought and reviewing what they put together? Are they going to have some authority to make moves without running it by you?<\/p>\n
Yeah, that\u2019s the hard part, honestly. I think I\u2019m probably going to still be relatively involved because like I said, I\u2019m launching Robuilt Capital, my big goal, my stake in the ground or the line that I\u2019m drawing in the sand, I want to raise a hundred million dollars in the next five years. I\u2019m dead set on that. I want to do that. I\u2019m going to do that. And what I plan to do with that $100 million is I want to go and acquire campsite, RV resorts and basically remodel them and juice them up, if you will, to be like high-end glamp sites and unique stays.
So I just don\u2019t think I can turn that over quite yet because I\u2019m still not the RV park glamping assassin that I\u2019m going to be. I\u2019m very good at it, but I\u2019m not good at good enough at it to just hand it over and direct. I think I still need to be in the weeds of this a little bit. But with that said, now that I\u2019m hiring an acquisition person, possibly launching a property management company, I\u2019m going to have the actual, I don\u2019t know, the project manager, the investor relations person, the COO of the operation.
I\u2019m going to have seven to 10 and most of these are already filled, but I\u2019m going to have seven to 10 people that I\u2019m having to actively train. It\u2019s already hard to hire one person and train them for the role. I hired my first COO two or three months ago to run host camp for me and I\u2019m involved. We talk every day. I have not been like, \u201cOh, here you go.\u201d And I haven\u2019t disappeared.
I\u2019m in the trenches with him to train him to do that. So doing that with five to seven to 10 people at once, that\u2019s going to be a real adventure that I\u2019m a little nervous about, but also really excited about. So I\u2019m looking to basically take an old school traditional approach to funds where you go and deploy them in multi-family or mobile home parks and put the Robuilt spin on it where it\u2019s a little bit more of a glamorous, upscale experience.
I\u2019m really excited to pioneer that. Because my intent is to pioneer that and be the number one fund that does that, then I\u2019m sort of assigning myself sort of the trench digger, if you will. I\u2019m going to be in the weeds of that, but I don\u2019t know if that\u2019s the healthiest approach, but that\u2019s the approach that I\u2019m going to take for now.<\/p>\n
I like you going big on something that\u2019s unique. So you\u2019re not saying, \u201cI\u2019m going to go buy a bunch of multi-family apartments that everyone else is buying.\u201d You\u2019re really banking on uniqueness. I\u2019m going to do something other people aren\u2019t doing. If I\u2019m going to scale, if I\u2019m going to be aggressive, I\u2019m going to go big. I\u2019m going to do it in a way where I don\u2019t have as much competition as a form of risk mitigation. I think that that\u2019s pretty wise.<\/p>\n
I mean, ultimately that\u2019s my dream. I want to go heavy into unique. I think there\u2019s the conservative layer that I\u2019m placing on how I model all these things out. But then there\u2019s also the extremely conservative layer that I\u2019m now going to be working with investor money. So as a fiduciary, I don\u2019t know, intermediary for my investors, I have to be even more conservative than how conservative I am now.
So a lot of is changing about how I\u2019m investing and I\u2019m curious, what about on your end? Is there any change in your risk versus your conservative approach to actually getting into properties now that you\u2019re sort of in the trenches of all these remodels and all these short-term rentals that you\u2019re about to launch?<\/p>\n
What I don\u2019t like about the path that my choices took me is there\u2019s a very long period of time from the point where I bought the house to the point where I\u2019m going to get data back to see how the investment worked out. Takes a long time to do the remodels. The cities and the neighbors are causing a lot of problems. Then you get the property up and you don\u2019t know when it\u2019s going to start booking. You got to tweak with it like the different pictures or different design ideas.
It takes a little while for a short-term rental to pick up at speed. So it could easily turn into 12 to 24 months before I have solid data that I can say this strategy worked. And that\u2019s a long time to go without actually having some input to be able to say, where should I pivot? So I\u2019m kind of flying blind for a while.
I don\u2019t love that. So during the period of flying blind, I really just focus on things other than acquiring more real estate. I\u2019m either going to go back to an asset class that I already understand very well that\u2019s much more predictable. This could be a long term rental, an apartment complex, putting money in with somebody else, flipping a house, something like that.
Or I put that energy into business. So it\u2019s very difficult when things change this fast for people who are doing new stuff to figure out if they should scale or if they should go slowly. And I can definitely recognize that\u2019s a challenge a lot of people are having. What are you doing to pivot right now?<\/p>\n
Oh, man. A lot. I\u2019m a relatively diversified investor in the short-term rental space, but I actually want to do a lot of things in real estate. I have big aspirations. BiggerPockets has always been the golden handcuffs of investing because I\u2019m really good at this one thing and I want to double down and niche down, but I see how many people in the world are crushing it in real estate and I\u2019m just like, \u201cI got to try all these different things.\u201d So that was just me as a listener.
I\u2019m like, \u201cI want to try it all.\u201d And then we interview so many people on the podcast that are amazingly talented and brilliant people that it inspires me to try new things. So I\u2019m actually going to be doing quite a few things. I am going to probably not do so much short term rentals the way I have been where I was buying the one-off homes. But I\u2019m actually going to be doing, like I said, the fund where I\u2019m acquiring a lot more short-term rentals at mass.
I\u2019m going to be doing a lot more medium term rentals. That\u2019s my big push right now. I have two medium term rentals now. I have three and I love them. They\u2019re super easy. I just locked in my biggest reservation ever on Airbnb for 33 grand for a six-month rental on my house in LA. I haven\u2019t even heard from the guests since they checked in. It\u2019s amazing. I absolutely love it.
So I am going to be focusing on getting more medium term rentals and focusing on developing contracts with medical agencies and different people like that. Because I know a lot of people that are crushing it in that space. Oh man, this is a really big pivot for me, but I\u2019m actually going to be doing a little bit more rental arbitrage. I have a few reasons for it. We don\u2019t have to get into it now, but I\u2019m going to be doing a little bit more of that from an exploration and education side of it.
I want to be able to teach people how to get into it like zero money down. And then I want to actually get into reverse arbitrage, which is a new thing that I just thought of two nights ago. [inaudible 00:24:10]<\/p>\n
Where You would buy a house and let somebody else do the arbitrage so you don\u2019t have to deal with all the headaches.<\/p>\n
Dude, you got this instantly. Everyone that I\u2019ve talked to about this, they\u2019re all, \u201cI don\u2019t get it.\u201d<\/p>\n
Yeah. You\u2019re getting rid of the worst part of being a short-term rental person. All the emotional ups and downs, the spikes, the headaches, the bad reviews, and you\u2019re getting to own the actual asset, which is where most of the money comes from.<\/p>\n
Yes. And you get to charge a markup. So if I buy a place that\u2019s 2,500 bucks market rent, I can tell an aspiring host, \u201cHey, I\u2019ll let you rent it out on Airbnb, but you got to pay me $3,000 a month.\u201d So not only am I ditching the low long-term rental returns, but I\u2019m actually getting a premium on it. I don\u2019t need a property manager. I can just rent it to an aspiring host and let them run their Airbnb journey and I get all the tax benefits.
I was in bed so excited about this two nights ago \u2019cause I was like, \u201cWhy isn\u2019t this talked about more?\u201d Long-term investors should be renting out their places to Airbnb hosts at a premium and you could double your returns.<\/p>\n
Yeah. That\u2019s a way that when we talked about in the part one of this episode, how you can diversify risk and how portfolio architecture can help. Having a couple properties like this where you get to own a highly appreciating asset, that\u2019s the market will work best in and it\u2019s going to have to have a lot of meat on the bone for someone to make it worth their while. You\u2019re not going to pull this off in Wichita, Kansas or Toledo, Ohio where the stuff is renting for $80 a night or something. It\u2019s going to have to be a decent amount.
And the operator, it has to be worth their time to do it. But dude, if they\u2019re going to absorb all of the worst parts of the business and pay you higher than market rent and you can own the property without having any of the headache, this is a great way to add some safety and some equity to your property without taking on the ease of ownership issues of a whole bunch of short-term rentals, which is kind of trying to babysit 25 toddlers all at the same time.<\/p>\n
Yeah. So to sum it up, I\u2019m going to basically be doing long-term rentals, medium-term rentals, short-term rentals. So I\u2019m going to diversify there and then acquiring large 50 to a hundred door properties that will eventually become glance site. So I wouldn\u2019t say I\u2019m necessarily\u2026 I guess it\u2019s all pivots. They\u2019re all small pivots, but they\u2019re all pivots in my wheelhouse. That way I can at least still be in my element in some capacity.<\/p>\n
I asked you previously about your concerns with some of the mistakes you could be making, but now you have a little bit more clarity on the direction you\u2019re going to pivot to. So do you have any more clarity on the types of mistakes you want to avoid going forward?<\/p>\n
Yeah. I\u2019m trying to mistake proof myself right now like the way I am with recession proofing myself. All right. So I think the big mistake is the shiny object syndrome of trying to approach everything. I think that becomes a problem whenever you try to approach everything out of your wheelhouse. But everything I just talked about, the reverse arbitrage, medium-term rentals, short-term rentals and glamping, all of those are just different forms of short-term rentals in my mind. Things that I\u2019m actually good at.
And so while I am spreading myself thin on the execution of how I\u2019m doing it, it\u2019s all within my expertise and knowledge. So I\u2019m not super worried about the mistakes of the actual execution of those models. I\u2019m just more nervous about, like I mentioned, not having the team to be able to execute them because I have three\u2026 I guess I\u2019m more nervous about the mistakes at scale.
I\u2019ve got three mid-term rentals right now. I don\u2019t know what it\u2019s like to have 30. That\u2019s a lot different. I have 35 doors right now that are effectively all short-term rentals. It\u2019s very different to manage 35 than it was to manage two. So right now, the only mistakes I\u2019m nervous about encountering are going to be the scaling mistakes that I make with scaling like purchasing reverse arbitrage units at scale or medium term rental stuff.
But because I\u2019m already doing most of this, I\u2019m not super worried other than\u2026 I think, \u201cOh, you know what? Personal mistake, I think.\u201d I think I\u2019m going to make the big mistake of putting everything I have into this and that will bleed into family life, dad life and husband life. If I\u2019m just going to lay it out there, I could see that being a big mistake that I make is not prioritizing what actually matters over this thing we call real estate.<\/p>\n
That\u2019s very easy to do and it\u2019s very wise of you to be planning for that ahead of time. And even if someone doesn\u2019t have a family like me, sometimes those issues bleed over into just your\u2026 I don\u2019t want to say your personal life, but your emotional wellbeing. When you\u2019re up at night worrying about what\u2019s going to happen or you borrowed money from investors and it\u2019s not going as well as you thought, it can have a very big toll on how you\u2019re feeling, the confidence levels you have.
Your mind can easily start to look for an escape and it can tell you crazy, terrible things to do to get out of those scenarios. So I think it\u2019s wise to be considering what could go wrong so you can prepare mentally for how you\u2019re going to handle those types of situations when they come up.<\/p>\n
Yeah, for sure. Well, what I\u2019d like to do now is assume that we made all the mistakes and everything crumbled, we lost it all, and we went to zero. I want to talk about now how we would go from having $0 a net worth back to where we are today. You cool to jump into that idea?<\/p>\n
That\u2019s a great idea. Let\u2019s do it. The broken afraid version at BiggerPockets.<\/p>\n
All right, Dave, let\u2019s fast forward. Okay. Let\u2019s just say you make some crazy mistake. You\u2019ve lost it all. You\u2019re back to zero. David Greene is no longer green at all. He\u2019s David eed.<\/p>\n
Yeah, the red.<\/p>\n
You\u2019re in the red. Now you got to rebuild and start from square one. How are you going to get started? What\u2019s your first step?<\/p>\n
First step? All right. I am probably going to do more than just investing in real estate. I\u2019m going to look to diversify the way that my income is coming in because I\u2019m at lost at all. I probably had too many eggs in one basket. I probably quit my job. I probably got super into investing, maybe one asset class like short-term rentals or something a little bit more risky. And then I had a bad couple months and boom, it was all gone.
So the first thing I wanted to do is to establish a much more solid base. So I want to scale horizontally before vertically. So I\u2019m going to look for an industry where I can make money, where I\u2019m still involved in real estate, which could be being an agent, being a loan officer, working for a construction company, being a contractor, consulting, working for a 1031 company, being a CPA. Anything I could do where I could help other people in real estate while helping myself.
Second thing, when I\u2019m looking for properties to buy, I\u2019m going to look for this stuff with the highest days on market in the best areas, especially if it\u2019s more expensive real estate. Now, I realize this may come as a counterintuitive statement. You\u2019re thinking, \u201cHey, the market is slowing down. Buy the cheapest properties you can find.\u201d But that\u2019s not what you want to do. That\u2019s actually increasing your likelihood of losing them. I want to go for the stuff that used to sell for a million when the market was at its peak, and now that rates have doubled, it\u2019s going to sell for maybe 650,000.
And it has the potential to go back to the million when the market does turn around and rates come back down. So I\u2019m going to play the long game, not the short, fast game, which is probably what I did that caused me to lose that money in the first place. Is that making sense?<\/p>\n
It does. I want to ask you how would you choose your market? Is there a strategy for the market entry point that you want to get into?<\/p>\n
I want high days on market and I want an area that I believe in the next five to 10 years, more people with higher net worth are going to be moving into. Okay? So I don\u2019t want to go invest in the part of town or the city where newlywed couples that have no money are going to go buy their house. You want to be where, all right, the wealthy people in California, in New York, in the northwest, in New Jersey, in these areas that were traditionally where wealth was gathered, where are they going to move to?
When they want to get out of there for whatever reason they have, high crime, bad weather, whatever it is, where are they going to go? That\u2019s the place that I want to be investing in. Right now a lot of people are moving into Texas. That\u2019s one market I\u2019d look into. A lot of people are moving into Florida. They really liked how things worked out after COVID in Florida and the weather is better than where it is in Maine. That\u2019s where I\u2019m going to be looking into.
You and I bought a property in Arizona in the nicest city in all of Arizona where the wealth goes. You\u2019re probably not going to crush it right off the bat investing in a market like that. You\u2019re going to be like the tortoise coming out the gates. The hair is going to pass you up. The hair of cash flow, they\u2019re going to go buy in Wichita, Kansas or Birmingham, Alabama. Some of these markets where the price points are lower, the price and rent ratios are more solid.
But wealthy people aren\u2019t going to be moving into those spots. I\u2019m going to be playing the long game because there\u2019s opportunity there that I didn\u2019t have when the market was hot. Now that the market\u2019s cooled down, I\u2019m not competing with as many other investors to get into these markets. They\u2019re all doing the opposite. They\u2019re all going after the cheapest property with the highest cash flow possible, not thinking about the future.<\/p>\n
All right. So if I understand this correctly, you\u2019re going for the highest day on market. That\u2019s going to be a strategy for acquiring good properties at a discount. You\u2019re going to be looking for areas where a lot of people are moving to because of the tax savings, but also people are just moving out of California and going to certain areas. You want to pick up that incoming traffic basically, right?<\/p>\n
Before everyone else does. That\u2019s exactly right. I don\u2019t think other people are looking for opportunities there because they\u2019re thinking, \u201cOh, that\u2019s an expensive property. I want to buy a cheap one at this time. I\u2019m going to be looking at the weather. I think that really matters.\u201d Most people live where they live because that\u2019s where their job is. But as work becomes more and more remote, you don\u2019t have to live in North Dakota. People are going to start to figure that out.
Why am I in Fargo? I could be living in Miami. I could be living in Tampa. I could be living somewhere like Corpus Christi where it\u2019s beautiful outside and I can still make money. So I\u2019m going to go invest in those locations. The other thing I\u2019m going to do is I\u2019m going to utilize all the tools at my disposal when it comes to funding.
So I\u2019m definitely going to use FHA loans. I\u2019m going to house hack a house at least once a year. I\u2019m going to try to do it more if I could get away with it. If I could convince a bank to give me a loan, I\u2019m going to get a primary residence, live in it for nine months, rent that out and move into another one for whatever reason. Maybe my job moved or I had a sick family member, I had to go somewhere else. But I\u2019m going to try to get away with as much 5% down properties as I possibly can in the best areas that I can justify so I can keep more money in reserves because I\u2019m less likely to lose my portfolio again like I did hypothetically last time if I keep more money in the bank. So I don\u2019t want to put 20 or 25% down if I have to.<\/p>\n
Okay. All right. Al good answers. Last one. How are you going to go about rebuilding your team? Because theoretically, all your current team, they\u2019re gone. They\u2019re out the window, they\u2019re bitter that you lost everything, they lost their job. Now, you got to build a new team. How are you going to assemble those Avengers?<\/p>\n
I\u2019m going to look for a property manager in the area that I want to buy the houses first because I don\u2019t like managing property. And to me, that\u2019s the hardest piece in the whole puzzle. This is why so many people manage their own properties. It\u2019s very difficult to find a good property manager. It\u2019s easier to find a good contractor or a good handyman than it is to find your own property manager that\u2019s good.
So that\u2019s the hardest piece. I want to get that first. When I find that property manager, I know they\u2019re going to have contacts around town. They know the good handyman. They know the good contractors. They know the pieces that I\u2019m going to need because all their other clients are sharing that information with them.
I frequently would say, \u201cHey, talk to my property manager. I don\u2019t want to deal with it.\u201d And then I would find that the property manager is now in cahoots with the rockstar realtor that I was using because when they met them, they realized they\u2019re better.
Or I\u2019d have a property manager that wasn\u2019t that great and they would get me a bid and I didn\u2019t like it, so I found my own person. And I was like, All right. Talk to the property manager. They\u2019ll let you in the house.\u201d So now the property manager is like, \u201cOh, this person is great.\u201d We\u2019re getting them as our referral person. So the better that you are, the more exposure you have to other people, the higher quality of referrals you start to develop.
From there, I\u2019m going to ask about the top rated agents in town. I\u2019m going to go and I\u2019m going to find the people that either own real estate there themselves or sell a lot of houses. They\u2019re going to help me find the deals. Those two people are going to help me find the loan officer, which is one of the easier spots to find. And then from there, I just need the contractor and I\u2019ve got my core four and I can start buying in that market.<\/p>\n
All right. Now I want to fire around what you would do with certain amounts of money.<\/p>\n
Okay. This is interesting.<\/p>\n
You ready for this? Okay. So what would you do with a thousand dollars? You lost it all. You got a thousand dollars to your name.<\/p>\n
With a thousand dollars, I would probably host a meetup for as cheap as I possibly could. I would definitely cater it with Chipotle because there\u2019s nothing that\u2019s going to get more people to show up for a meetup than having Chipotle. It also shows that you\u2019re a classy person and you can be trusted. Those are all qualities that Chipotle lovers enjoy. I\u2019m going to have as many people come and I\u2019m going to make as many contacts as I can and make as good of an impression as I can. I can probably stretch that thousand dollars into several of these and I\u2019m going to have emails and phone numbers and names of all the people that came. That\u2019s my new database.
I\u2019m going to start off by just pouring into those people, building relationships, finding how I can help them and earning their trust, which I\u2019m then going to turn into revenue through whatever real estate business I developed. If I became a loan officer, an agent, a contractor, a handyman, even, those are people that\u2019s going to fuel my business by saying, \u201cHey, this guy David over here is a handyman. My buddy needs a new door hang at his house. My buddy needs a leaky pipe fix.\u201d
I\u2019m going to start creating revenue off of those relationships. And now every time I go meet somebody to fix something in their house, I\u2019m going to let them know, \u201cHey, I\u2019m looking to buy real estate. Let me know if you know anybody who\u2019s looking to sell it?\u201d I\u2019m going to try to get some owner finance deals, some creative financing going on because I don\u2019t have a ton of money, which means I need a ton of people in the network.<\/p>\n
Okay. How about $10,000?<\/p>\n
$10,000 is getting better. Now, I\u2019m in a position I can probably get an FHA loan and I\u2019m going to look for something right around $300,000 where the seller is going to pay the closing costs on that. I\u2019m going to tell my agent they need to write the offers that way. I\u2019m going to try to get the biggest and the best house in the best neighborhood possible that\u2019s as ugly as I could possibly find.
If it\u2019s ugly and it\u2019s big and it\u2019s in a great location, I\u2019m going to want it and I\u2019m going to just house hack that sucker with a grassroots campaign. I\u2019m going to rent the rooms out if I have to rent the rooms out., I\u2019m going to turn rooms into rooms that can be rented out. I\u2019m going to have a person who\u2019s got a trailer that they\u2019re not using parking on my property and I\u2019m going to rent that out to somebody else.
I\u2019m going to scrape and claw to figure out a way to build up some cash flow from that first property that will keep my mortgage as low as possible or maybe even put some money in my pocket to help buy the next house.<\/p>\n
Perfect. How about $50,000?<\/p>\n
50,000, I\u2019m starting to feel really good. I\u2019m still going to house hack and do everything I said, but I\u2019m going to have 30 to $40,000 left over after that to be able to buy another property. So maybe I take some of that extra 30 or 40 and I use that to improve the property I bought. Now, I can house hack a real fixer upper. I can get something that needs a lot of work and I can make it worth more which increases the equity. And then 12 months later I can refinance and hopefully pull out more and turn that initial 50 into more like 80, 90, maybe $100,000 after the refi.
So I\u2019m not going to be able to buy something turnkey. I\u2019m going to have to be very, very clever and put a lot of work into finding the property that needs a lot of work but has the highest upside. Okay? It\u2019s a 2,800 square foot house in a neighborhood with other houses that are also big. But this is the one with the green carpet and the ugly wallpaper and it smells bad. Everybody walks into it and just turns around and says no, because they want something turnkey in that neighborhood and they can afford it. That\u2019s the house that I want to go buy and.
I\u2019m playing the long game. So 12 months later after I fixed it up and I put a little bit of money and some sweat and some tears into it, its values increase the most because the comps were much higher than the price I pay. There\u2019s a bigger spread in the high to the low than some of the other neighborhoods with cheaper homes where the spread just is not that significant. You don\u2019t have as much meat on the bone.
After that refinance, I\u2019ll be able to repeat the same thing again, and at the same time I\u2019ll be able to house hack. So if you do this right, you\u2019ll have one house hack every year and then one fixer upper property like this, and you work those at the same time for several years in a row.<\/p>\n
No further questions, your Honor.<\/p>\n
Thank you very much. All right. If you don\u2019t mind, I\u2019d like to cross-examine the witness.<\/p>\n
Allowed.<\/p>\n
I\u2019ll allow it.<\/p>\n
I\u2019ll allow it.<\/p>\n
Sustained.<\/p>\n
There you go.<\/p>\n
You were going with court language, but you went with The Office\u2019s Michael Scott. That\u2019s what was so funny about that. All right, the year is 2023. You have lost your entire short term rental portfolio, yet you have not lost your fighting spirit. What is the first step that you\u2019re going to take in rebuilding your empire?<\/p>\n
Well, there\u2019s one thing that I\u2019m really good at and it is marketing, sales and content. So I am going to be rebuilding my content system and ecosystem and platform to just make myself an authority again and really talk about the demise and the mistakes that I made and how those mistakes are going to make me wealthier and richer as a result. So I\u2019m going to get out in front of the bad press of all the mistakes that I made with losing everything. I\u2019m going to own them and I\u2019m going to make really inspiring content that shows anybody that you can build from zero to hero all over again. Okay?
So I\u2019m going to use my content as an opportunity to raise money. There\u2019s no reason for me to scale slowly and build back from zero if I already have my knowledge. I think when you\u2019re starting out in real estate, you have to go very slow because you just don\u2019t know anything. I still retain my skills and knowledge. Right? So theoretically, if I lean on the mistakes that I made, I can go and I can raise money from an investor and use that to get into properties that are going to cash flow.
Now, I want to make money as quickly as possible. I need to be cash flowing. I actually need to make money. So I want to figure out how to get into different properties that make me money right out the get-go. And on top of that, I want to prove a little bit of credibility and reestablish a new track record. So I would probably actually start a property management company and I would manage Airbnbs for other people.
I would help them make a lot of money and I would try to get to 20 as quickly as possible so that I could go to an investor and say, \u201cHey, look at these 20 properties that I manage. I make all this amount of money for these 20 owners. I can make you that amount of money.\u201d I\u2019m going to do the sweat equity in exchange for equity in that property.
Now, probably what I\u2019m going to do is put in no money, have the investor fund it, have the investor finance it, and I\u2019m going to do everything. I\u2019m going to source the deal. I\u2019m going to work with realtors. I am going to furnish the place. I\u2019m going to manage it. I\u2019m going to do everything. I\u2019m going to work my tail off so that this investor knows that I\u2019m putting everything I have into this house.
Hopefully a strategic investor that will reinvest with me 2, 3, 4, 5, 6, 7 times. That\u2019s going to get me some cash flow, but I also want to be working on appreciation at the same time. So through my different content, through everything that I\u2019m doing, I\u2019m going to do my best to join other syndications and other funds as a general partner, as a small role, whatever I have to do to get into a syndication so that I can have a small little piece of a pie of something that will eventually be a lot bigger.<\/p>\n
What role do you see yourself playing in that syndication? How are you going to bring value to them if you don\u2019t have a ton of money?<\/p>\n
Probably the actual investor relations. I\u2019m going to be the one meeting with the investors, walking them through everything. Not necessarily the number crunching. I\u2019ll let the financial modeler do that, but I\u2019m going to be in charge of the marketing. I\u2019m really good at funnels. I know that I can create a funnel system that effectively reaches a large audience, and then from that funnel, that audience starts going down the funnel and eventually gets to the fund.
So between fundraising and actual marketing, I will be in charge of lead generation effectively for a fund and that will take care of my appreciation. So I want to try to get back appreciation and cash flow as quickly as possible. Equity and cash flow fuel, because those are the two components that are needed for hopefully a relatively sustainable lifestyle in real estate.<\/p>\n
Yeah. What I like about this is you\u2019re not just relying on investing, you\u2019re relying on your skills as a human being that you developed over time to give you that little push, that boost to help your building wealth. A lot of the people listening to this have skills they\u2019re not even thinking about. They\u2019re in marketing and they don\u2019t realize that they could be helping a syndication with raising money or putting out better content. Right?
They analyze things for a living as maybe an insurance adjuster or something like that, and they\u2019re not thinking about how they can help analyzing properties for a fund. So that\u2019s very, very clever. Now it sounds like you\u2019re not picking a market to rebuild, right? Because you\u2019re going to link up with someone else who\u2019s already done that.<\/p>\n
I\u2019m trying to join other ecosystems and build it that way. I mean, if you think about Elon Musk, for example, when he wants to start a company, he\u2019s not the one that\u2019s actually doing it, right? He knows his skillset. His skillset is finding the right team, delegating it, providing the vision and kind of assembling it that way. But he\u2019s never the one that\u2019s in the trenches actually building that company from the ground up from a day-to-day tactical side.
So I don\u2019t want to do that. I don\u2019t want to be the person that\u2019s doing a live-in BRRR and starting that process. I think marketing can solve a lot of those problems for me and get me back to where I was within a year if I really put a lot of time and effort into it. So from a market standpoint, I\u2019m a big fan of national parks. So a lot of what I\u2019m going to be proposing to investors into the people that I\u2019m working with are to heavy up into some of these more recession resistant areas.
National parks are mother nature\u2019s Disneyland, as I always say. So anything that falls within the Grand Canyon, Smokey Mountains, Yosemite, Yellowstone, I know that those are always going to be really rock solid properties and that that\u2019s where I would probably heavy up is if I was going to start somewhere.<\/p>\n
All right. Now, if you\u2019re going to source a team here as far as who you\u2019re going to link up with, what are some things that you\u2019d look for in the syndicators or the partners or however this is being structured that would make you think that\u2019s the person I want to hitch my wagon to?<\/p>\n
So it kind of depends. If we\u2019re just talking about me partnering up with an investor, I want a silent investor to just let me do my thing. I want a silent partner like, \u201cHey, I know you\u2019re good at this. You\u2019ve wined and dined me. I don\u2019t want anything to do with this. I just need time to work that money, do my thing, embrace my mistakes, and go all in. So from an investor standpoint, I\u2019m always looking for a silent partner. From the team standpoint, that\u2019s a good question. I knew this was coming and I probably should have prepared for it.<\/p>\n
Well, you probably haven\u2019t done this before, right? You haven\u2019t found a syndication to throw yourself into?<\/p>\n
No, it\u2019s just my syndicate. I started it. I started my own fund. I did that today. So I\u2019m probably going to be working. I know what I\u2019m going to do. I\u2019m going to find a project manager type of person. Someone that\u2019s very analytical, someone that\u2019s very driven by logistics and details. That\u2019s probably going to be the first hire on my team because I\u2019m terrible at that. That is not my gig. I\u2019m not good at that. I\u2019m a visionary. I\u2019m not good at detail oriented things.
So I need a counterpart that\u2019s going to keep me on task, keep me on the path to where I want to go. So probably somewhat of a project manager or like a COO who\u2019s willing to start from the ground, from the foundation and build up. Someone that\u2019s like, \u201cHey, I\u2019m down to be broke with you for the next couple of years. Let\u2019s do this thing.\u201d Someone that\u2019s not focused on the cash flow benefit immediately.<\/p>\n
Wonderful. Okay. Let\u2019s say you have a thousand dollars. What are you going to do with it?<\/p>\n
I\u2019m going to invest that in some kind of course or some kind of education that is going to make me smarter, that\u2019s going to make me money. I\u2019m going to invest in that, or I\u2019m going to change my personality type and I\u2019m going to invest in $1,000 worth of books and read them. I\u2019m going to use that thousand dollars to make myself smarter in some capacity, because you can\u2019t do much with a thousand bucks in real estate. That\u2019s always the advice. \u201cAll right. If you have a thousand dollars\u2026\u201d<\/p>\n
A thousand dollars gets you a lot of knowledge and wisdom through books.<\/p>\n
Yes, I agree.<\/p>\n
Brandon Turner had a point about this. He talked about how someone could have 10 or 20 years of life\u2019s wisdom condensed into a $10 book and we just dismissed that like it\u2019s not a big deal, but how valuable that actually is.<\/p>\n
Yeah. I mean, you can infinitely become smarter with one book, right?<\/p>\n
Yeah.<\/p>\n
So whether it\u2019s that or some kind of little curriculum, something that teaches me. I just got to figure out how to make myself know something that I don\u2019t already know.<\/p>\n
You also got to figure out how to make yourself spend more than four seconds doing one thing without having something else pop up that you have to go do. Because it\u2019s going to be tough to read these books in your current state. I like that.<\/p>\n
Yep. Well, theoretically I won\u2019t have a lot to do.<\/p>\n
Well, that\u2019s a good point. Yeah. Maybe some of the money can be spent hiring virtual assistant to read you the books or you buy them on Audible. I suppose someone\u2019s already taken that.<\/p>\n
Audible. Right.<\/p>\n
Yeah. All right. Same question with $10,000.<\/p>\n
$10,000. Like I said, I want to get cash loan as soon as possible. So I\u2019m probably going to do a rental arbitrage deal or some kind of rag tag glamping operation, get into an apartment, pitch a landlord, beg them to let me release it on Airbnb. If they say no, I will say, \u201cHey, how about this? Let\u2019s rent your apartment on Airbnb and we\u2019ll split the profits that way they get some of the upside as well.
So I\u2019m going to use $10,000 to go out and basically pay my deposit, my first month\u2019s rent. About, let\u2019s call it six to $8,000 on furniture and get it listed on Airbnb as soon as possible. Make some money. That\u2019s option one. Option two would be like buy a $3,000 tent. Go find a property owner that has 50 acres, say, \u201cHey, can I put my tent on your property? Give you 25% of the cash flow that I make, and basically listed on hip camp Airbnb. I know that this is possible because my $3,000 tent grossed me $142,000 over the three and a half years that it was running.\u201d So 10,000 bucks and get a couple of those, I hope.<\/p>\n
Glam pack. I like it. Okay, last question. Now you have $50,000. What are you going to do with that?<\/p>\n
That\u2019s a really good question. I think I\u2019m going to just go\u2026 You said the house hack. So I\u2019m not going to do that because that would be a lame answer, but that was a good answer and I\u2019m jealous that you said it first. I am probably going to try to get a second home loan and rent that property out on Airbnb. So I\u2019ll try to get a 250K, $300,000 property in one of those national parks that we talked about. Probably not the Smokies. I\u2019m going to be pushed out of there, but probably somewhere like Hawking Hills, Ohio.
I\u2019m going to buy a property there and I\u2019m going to get it set up so that I can make some cash flow. Because I lost everything, so I need to pay the bills. I got a family, they\u2019re hungry. I want to make sure that everybody is okay. Equilibrium can be met as soon as possible.<\/p>\n
There you have it folks. That\u2019s wonderful. Rob, this is our plan. If you dropped us into the middle of nowhere, broken afraid, without our portfolio, but with the knowledge we have now, what we would do to start over. Rob, anything that you thought of when you were hearing me talk that you wouldn\u2019t have thought of or heard yourself say \u2019cause you had no idea what you were going to say when I asked you this question that you thought like, \u201cOoh, that\u2019s really good. I want to hammer that point home\u201d?<\/p>\n
Yeah. All of it really. But I\u2019ll say this because my immediate thought was, \u201cOh, I\u2019m going to make content and I\u2019m, I\u2019m just going to raise money that way. I\u2019m going to do the thing that I\u2019m good at and just get people to believe in me via social media. Because I\u2019ve done it before. I do it every day now, right?\u201d However, the thing I hadn\u2019t considered is you\u2019re doing the grassroots approach and you\u2019re going to use your a thousand dollars to hold different meetups and get people there, get their emails, get their contacts, connect with them, network with them, see if you can partner with them, see if they\u2019ll invest in your first deal. They\u2019re exactly the same thing. They\u2019re just different versions of each other and I like that.<\/p>\n
Well, I don\u2019t have your rugged good looks so it\u2019s harder for me to create as much attention and content on social media, but if you get me in front of somebody in person, I can work my magic. So I wish I could do what you were doing. You\u2019re going to be holding a meetup in front of like 90,000 people because that\u2019s all the views you get. If I made a video, it\u2019d probably get 14 views.<\/p>\n
No, you just hit 10,000 subscribers. You\u2019re moving on up in the world, my friend.<\/p>\n
How many do you have?<\/p>\n
550.<\/p>\n
That\u2019s the same thing Brandon does. Brandon is like, \u201cGood job. You got to a hundred thousand followers on Instagram and he\u2019s at like 300,000. All right. So if people want to see, if people want to become one of those 200 something thousand subscribers that you have on YouTube, where can they find you?<\/p>\n
Look, they can find me on the Robuilt YouTube channel, R-O-B-U-I-L-T. I also recently did two videos for the BiggerPockets YouTube channel. So go check out the BiggerPockets YouTube channel. There\u2019s some of the best videos I\u2019ve ever made. I\u2019m really excited about them and I want to make more. What about you?<\/p>\n
You can find me @davidgreene24 everywhere, even on YouTube. So if you want to be one of those 10,000 people, which is actually, if you think about it, they\u2019re getting a bigger share of my attention than yours because you\u2019re already so big.<\/p>\n
That\u2019s true, that\u2019s true.<\/p>\n
I\u2019m just this little tiny guy in the space. So you want to go get some individual attention, check me out at youtube.com, @davidgreene24 or whatever your favorite social media is. You can follow me there. You can also check out my website at davidgreene24.com. That kind of shows all the stuff that I can offer you, ways that I can help you. There\u2019s a lot of different things we do, so it\u2019s good to kind of follow us there. And then Friday nights I go live on YouTube where people can come and they can ask questions and they can learn. This is just the best time ever in the world to learn stuff.
If you don\u2019t like learning, this is a crappy time to be alive because there\u2019s no benefit to it. But if you enjoy learning, you could just be learning almost the entire day every single day. Can you imagine living 1400 years ago and just being in the middle of the woods with you and your closest neighbor was God knows how far away and all you had was maybe your spouse to be there with you and you had to learn by doing versus now like the wisest philosophers in the world, the smartest people, the people that have spent years dedicated to just studying one tiny element of life like psychology and then one tiny element within psychology, like cognitive psychology, you can get all of that information basically for free if you just put the time into.
It\u2019s kind of crazy how much information we have access to. I want to encourage everybody to take advantage of that because your life really does change as you learn more stuff.<\/p>\n
Well, I will say this, the thing that always trips me up about people 1,400 years ago, really up to 100 years ago, they didn\u2019t have AC David. They didn\u2019t have AC. They were just hot all the time. No, thank you. I like 2023. And with that, let me just say if you guys like this episode, if it was a nice twist, if you like the parallel universe of me and David losing it all and we proved ourselves to you on how we could rebuild our economical status, do us a favor, leave us a five star review on the Apple Podcast app or wherever you\u2019d listen to your podcast. It helps us quite a bit. It helps us reach the top of charts. When we are at the top of charts, then that gets served up to new people that maybe wanting to get into real estate.
And if we\u2019ve ever said anything that may have changed the trajectory of your life in a good way, we can do that for other people. If you help us with a little tiny five star review.<\/p>\n
We also get better guests for the shows if we\u2019re at the top of the rankings and so we can make better content for you. Thank you very much, Rob. I appreciate you sharing everything you did. Your insight is brilliant as always. I\u2019m going to get us out of here. This is David Greene for Rob \u201cno AC8 for me\u201d Abasolo signing off.<\/p>\n