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Distressed Properties: The Secret to Smart Real Estate Gains — Transcript

by BRAD LEA TV · 15,021 words · 2,144 segments · language en · Watch on YouTube

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0:00and I burned through nearly seven
0:01figures, getting high, doing dumb stuff.
0:03So, I find these $5, $10,000 vacant lots
0:05and went and resold it for$125. I'll
0:07take the tax value or Zillow and I'll
0:08offer a tenth of that. Maybe 90% of the
0:10time they just say, "Sure, I'll take
0:12it."
0:12>> People take it.
0:13>> You can't Yeah. You can't buy land at 10
0:15cents on the dollar and screw up.
0:16>> People come in and bam, make themselves
0:18a quick half mill in one year or less.
0:21>> Got a housewife that came through. She's
0:22making 400 grand after about 6 months.
0:24Another guy within his first 9 months
0:26did 1.6 million. My program manager at
0:28my office never bought a house except
0:30for her own. She offered him 60. He took
0:32it, cleaned the place out, hauled the
0:33trash out, no remodeling, and resold it
0:35for 170,000. These people are getting
0:36rich. They're making a ton of money.
0:38>> And is there like unlimited? Like
0:40there's enough for everybody.
0:41>> Yeah. I was doing this for my RV. I was
0:43living in an RV in the oil field
0:44tracking down these properties and I was
0:46working 60 70 hours a week. If I could
0:47do it on the nights and weekends, I
0:49don't know what the excuse is. A couple
0:50years ago, we did 40 in revenue.
0:52>> 40 mil. house flippers, wholesalers,
0:54land flippers, everybody that's in those
0:56part that midcap real estate stuff, 95%
0:59of them are struggling so bad and our
1:01business is growing like no one's done
1:02this before like this. Before I did
1:04this, this was not a thing. I got
1:06success stories that you can't deny,
1:07>> dude. I got to get on this quick. What's
1:10the most you made in one year?
1:16What it is? Brad Lee back again with
1:18another episode of Dropping Bombs today
1:20in the studio. Folks, I got a real treat
1:22for you. If you're driving your car,
1:23walking on a treadmill, stop and pay
1:26attention. Especially if you like to
1:27make money, if you've been looking for
1:29your break, if you've been looking for a
1:30way to get what I would say rich
1:34is Logan Fulmer in the house. What's up,
1:37Logan?
1:37>> Brad, it's good to be here today. Hey,
1:39and let me just mention folks, there's a
1:42an event coming up that that this guy's
1:44throwing uh in Scottsdale that you guys
1:47are going to want to go to, especially
1:49as I told you, if you like to make
1:51money, most people are going to go, "Oh,
1:53it's a real estate thing again." But
1:55this one's a little bit different. So,
1:56guys, I want you to pay attention cuz
1:58this dude's not only doing it, but he
1:59has a massive success rate so far and
2:02growing rapidly. It's a special way to
2:04do do something. you discovered somehow
2:06some way. It is real estate related, but
2:09you have case study after case study
2:11after case study where you know people
2:13come in and bam make themselves a quick
2:16half mill, 250, 300, 600, 800 in one
2:20year or less doing real estate. Now
2:23they're doing, you know, millions of
2:25dollars in this particular way that
2:27you've discovered to do something in
2:29real estate. We're going to get into it.
2:31But first, dude, you went from doing
2:33drugs in your 20s to run a 25 person
2:35operation with lawyers and FBI agents
2:37tracking down property owners across the
2:39globe. Walk me through that.
2:41>> That's a lot to walk through real quick.
2:43Dad was a CPA, mom was a realtor. That
2:46didn't all work out. And as a kid, I
2:48just didn't know where I was going, man.
2:50Went to college, somehow managed to
2:51graduate, but I picked up a habit along
2:52the way. The habit was tough, you know,
2:54like a lot of people, that was heroin.
2:57>> Damn.
2:57>> I know, dude.
2:58>> The heavy duty straight to it.
3:00Hurt my ankle, painkillers. I like this.
3:03You know, people that are extreme go all
3:04the way sometimes.
3:06>> So anyway, that happens.
3:07>> But you got hooked.
3:08>> Got hooked for sure. It's about a 10
3:09year run. Yeah. So, I mean, I had a job.
3:11I go work in a suit with my stuff in my
3:12pocket. Anyway, I get through that after
3:14a couple times in rehab and I go to the
3:16oil field and that's where I get to
3:18start making money away from all the bad
3:20habits, just working, gaining
3:22confidence, being successful. All those
3:25things worked out. But I remembered I
3:27inherited some money. A
3:29years before I went to the oil field.
3:30That was a good chunk. And I burned
3:32through, I don't know, nearly seven
3:34figures while I was just getting high,
3:36doing dumb stuff.
3:37>> Damn.
3:37>> So, I started making money in the oil
3:38field. Have it together. I'm finally
3:40cleaned up. And I realized this is good
3:42money, better than I've ever earned, but
3:44it's going to take me 10, 15 years to
3:46earn, but I just blew from the
3:47inheritance. I got to do something. I
3:48started to try to find a way to invest.
3:50And that's where I started. So, so what
3:54happened? How how what you you stumbled
3:57across it? No, you didn't just figure it
3:59out. You you kind of stumbled into it.
4:01No.
4:01>> Yeah. I looked back and realized
4:03something really worked one time. I
4:04thought maybe I'll do some more of that.
4:05So, I was living in the RV in the man
4:07camps saving all the money and I had a
4:09couple hundred grand saved up. So, I
4:10started going buying these vacant lots.
4:12And since I burned a lot of cash before,
4:13I was worried about losing a lot less
4:15than earning. So, I find these five
4:17$10,000 vacant lots downtown in San
4:20Antonio, Texas, and I think, all right,
4:22I can buy these and I hope they get more
4:23valuable, but if they don't, how much
4:25more I don't have $5,000 at risk. I
4:27might sell it for 4,000. I might only
4:28have a thousand at risk, low risk. So, I
4:31bought a bunch of those and the market
4:32started to recover within a year or two.
4:34It was perfect timing. I didn't pick it.
4:35I wasn't that smart. But as that started
4:37to happen, one of those properties I
4:39bought without title insurance and I
4:41went to go resell it and the guy was
4:43like, "Logan, I'm take cash, no title
4:46insurance, and I was just kind of gotten
4:48sloppy and I bought it without
4:49insurance." So, I went to go sell it.
4:51Title company says, "You can't sell
4:52this. You have to get the eight other
4:53owners to sign." Like, "What do you
4:55mean? I got the deed." and they said
4:56there's eight more of those. So there
4:58were nine of us that owned it together,
5:00his siblings and relatives. So I had to
5:02go through and find I had to hire
5:04lawyers, pay him by the hour to go ask
5:05them questions and go try it. Didn't
5:06work. Go ask questions. Had to solve all
5:08these ownership and title problems and
5:10aggregate all the undivided interest and
5:13then strip judgments and leans from
5:15their interest. Like one of them didn't
5:16pay their credit card, one of them had
5:18baby mama child support leans. After I
5:21solved all those mistakes, I was still
5:22in the thing for 20 grand and went and
5:24resold it for 125. And when that
5:27happened, I was like, "Hold on a minute.
5:29Can I do this again?"
5:32So, yeah, that's how I got there.
5:34>> But how did you So, you built up to
5:36having 25 people running, tracking
5:39people down, and FBI agents doing
5:41background checks.
5:42>> That was a Yeah.
5:43>> Are you skip tracing people or
5:45something?
5:45>> Yes. So, that was about 10 years ago. It
5:48was just me and I'd met another guy.
5:50When you start doing this, you know,
5:51obviously like you need some money. And
5:53I had some money in my bank account,
5:54some vacant lots, so some decent equity.
5:56But there was another guy that was a
5:58little bit older than me, much more, I
6:00guess, experienced in business. We kind
6:01of partnered together, put our heads
6:03together, and decided to go after these
6:05like in a real way. So it was just me
6:07and him.
6:09After a couple years, we started to
6:10build up something like meaningful, you
6:11know, but as we started to get
6:13transaction volume, you know, 15, 20, 30
6:16in a year, we started to look at numbers
6:17and you make 500 600 $800,000 off of two
6:21$300,000 of cash. So, it's huge returns,
6:23but you're working it. So, at that
6:24point, we bring more people in, hire
6:26train, and it just started to grow. So,
6:28I mean, at this point, so we start out
6:30with like vacant lots on the east side
6:31of town, but over that 10-year period,
6:33you know, we had to we we'd skip trace
6:36people and we couldn't find them. We get
6:37lost. So, what would be the next best
6:38thing? If you can't find somebody, what
6:39do you do?
6:41>> What?
6:41>> Hire PI. Like, that would be the next
6:43best thing I would think. I can't find
6:45them. Those people are can't personally
6:47find them.
6:47>> Yeah. So, like we find a vacant lot that
6:49would be worth 100 grand. It's got 10
6:51grand to delinquent in taxes and no one
6:53can find the owners.
6:55>> Well, I would go in and do the ancestry
6:57research and genealogy and figure out
6:59who all the owners should be from the
7:00prior owner. I'd find three of the four,
7:02but I couldn't find the four. So, I'd
7:04hire a PI. They'd go find them. So that
7:06kind of became the model. We're skip
7:08tracing them. We're calling them. We
7:10found them.
7:11>> Did they know that they own this land?
7:13>> Some do, some don't. A lot of them
7:14don't.
7:15>> Did Did you ever run into a Brad Lee?
7:18>> Not yet.
7:19>> Damn it.
7:19>> But if you want me to reverse search, I
7:21can.
7:21>> How would you not know you own property
7:23somewhere like wills or estates or
7:25something that you weren't aware that
7:26they were willed to you or something?
7:28So, I call it like an orphaned estate or
7:31so, for example, let's say you had seven
7:33kids and maybe they all got along but
7:35two of them didn't and two of them left
7:37the house and they said, "Dude, I'm done
7:38with this guy. I don't like dad. I hate
7:40my siblings. They're gone." You might
7:42buy more property after they're gone.
7:43And if you don't have a will when you
7:45pass away or sometimes you do, they're
7:48never notified. You can't find them. The
7:49family's disjointed. Sometimes all those
7:52things happen. So when that happens,
7:54we've got to go through and identify
7:55everybody, figure out who owns what, and
7:58then we start making offers. But the
8:00important part in that case is you're
8:01not going to them saying, "Look, this is
8:03a $200,000 property. I'm going to give
8:04you $200,000." You say, "This is a train
8:07wreck. This is the road map to fix it.
8:08If you want to make top dollar, this is
8:10how." If you don't, I'm going to give
8:13you $5,000 for your share or $500,
8:16something very nominal nominal.
8:18>> And they sign off.
8:20>> 90% of the time, they just say, "Sure,
8:22I'll take it. I can't fix this problem.
8:24Or a lot of times we hear, we've been
8:26trying to fix this for 10 years. We
8:27don't know how to fix it. It's not
8:29working. We've called lawyers, judges,
8:31it doesn't work. There's judgments
8:32against my brother. There's a missing
8:34child over in Switzerland. We can't fix
8:37it. Sure, take it. So, my pitch is very
8:40transparent. If this works, I'm going to
8:42make a lot of money. If it doesn't, I'm
8:44stuck in your shoes where you're at
8:45right now.
8:48So ultimately your skill is skip tracing
8:54and negotiating. So there's a lot of
8:56like there's a lot of legal background
8:58to understand who owns it. So if you die
9:01without a will, the state's got one for
9:02you. It's called intestate succession.
9:04So you've got to go find that in
9:06whatever state you're in and see when
9:08you pass away there are two kids from a
9:09prior marriage or two kids from your
9:11current marriage. And what does your
9:12wife get? You got to sort all that out.
9:15So skip tracing is really important, but
9:17sorting that part out is important.
9:19>> Now, now if I come to this event January
9:2331st,
9:25is this what you're teaching me all day?
9:27>> Yeah.
9:28>> How to skip trace or or or the the whole
9:30the whole program from A to Z.
9:32>> Yeah, there's a lot more in the program
9:34from A to Z, but we have sections on
9:35what is a lead, how to research that
9:38lead, how to call that lead, seller
9:40psychology, what's your script like, how
9:42to make an offer. Because if you go, you
9:44buy an an office like this, you're going
9:46to show up with a promagated contract
9:48with a broker and make an offer. Our
9:50offers can't be like that. Many times
9:52are without title insurance. Many times
9:54they're with a lawyer and they close
9:56within a week or two, sometimes two
9:58days, a day. So, it's a different type
10:00of offer. So, go over that. And then the
10:03retired FBI agents who are private
10:05investigators that work with us, they
10:06present and teach people how to find
10:08people more effectively than most people
10:09can. The state laws change depending on
10:12what state you're in. So, I've got two
10:14attorneys that are presenting on that
10:16and then I talk about general business
10:17model, how to organize it and execute.
10:19>> So, can people leave this event with
10:21decent credit and no money and do it or
10:24do they need a little bit of money?
10:27>> You usually would need a little bit of
10:28money. Credit won't really matter. So,
10:30when we first started doing this, I
10:31would just pay for all the debts, pay
10:33the delinquent taxes, pay the mortgage,
10:35negotiate the judgments and leans.
10:36That's the part we haven't talked about
10:37yet. How do you know that the property
10:39is worth what you're paying?
10:42>> So, if you're selling something at
10:44market for top dollar with realators and
10:46everything's clean, you're going to get
10:47the price that Zillow says. It's pretty
10:49close a lot of times. In this case, I
10:51just take that number and divide it by
10:5420, which gives me five cents on the
10:56dollar, 10 cents on the dollar, and
10:58that's where I start.
11:00>> You people take it.
11:01>> You can't Yeah, you can't buy land at 10
11:04cents on the dollar and screw up. So, my
11:06valuation is not sophisticated. I'll
11:07take the tax value or Zillow, pick one,
11:09I don't care. And I'll offer a tenth of
11:11that, maybe,
11:13>> but I'm taking on the risk. So, I got to
11:15fix these issues. And if there are four
11:16owners, I have to buy them separately. I
11:18have to buy them individually. And if
11:19something goes wrong, the fourth guy
11:20says, "I got this big judgment from a
11:22credit card I didn't pay from 10 years
11:24ago. I owe them 40 grand or a hundred or
11:26200 grand." And we've had like
11:28million-doll judgments and leans against
11:30people that we now have to take we have
11:32to buy it subject to that problem and go
11:34to the creditor creditor and negotiate.
11:37So like $100,000 lean might be eight
11:40years old. The creditor knows they're
11:42not collecting much, but most people
11:43don't understand how to deal with that.
11:45So we'll go to the creditor and say,
11:46"Credittor, you got this old
11:47eight-year-old $100,000 lean. You know
11:49you're not collecting. It's done. I'll
11:51give you a three grand." No, no, no. Not
11:54three grand. five.
11:57There you go. So, I'll have them assign
11:59it to me and then I'll release it.
12:02>> So, in a nutshell, because you're not
12:03going to give away the the secret sauce
12:05just by briefly discussing it. So, step
12:08number one, you're going to teach me how
12:10to go find these. Is it is I'm driving
12:12around town. How am I finding them? Is
12:13there records that I'm looking through?
12:15>> The way I started is I would drive
12:17around town and look for houses that
12:18were abandoned in tall grass. That was
12:20the first way. Over time, I started to
12:23understand how the data would help me
12:25find them faster. So, you can look
12:26through court records, which are
12:28dockets. You can look through deed
12:29records to find the title problems,
12:31which usually points back to ownership.
12:34Um, delinquent taxes is usually a good
12:36indicator, but you can use data now to
12:38find it pretty quickly. And we go
12:40through all that.
12:41>> So, I could leave that place and start
12:43finding you. Are they everywhere or No,
12:46>> mostly everywhere. Yeah, there's
12:48>> So, here in Las Vegas, I could do it.
12:51If you had to tell me, Logan, within
12:53seven days, you have to find one deal
12:55that fits this criteria within five
12:57miles of this office, as long as it's
12:58not all commercial right around here, or
12:59like super high value, I bet you I can
13:03do it.
13:03>> Are there are they empty lots or are
13:05they abandoned houses, foreclosed
13:07houses? What are they?
13:08>> And this is pretty asset agnostic. The
13:10first ones I started were vacant lots
13:12because I understood the values and the
13:15location and all and I stumbled upon
13:16that and I found a fact pattern. But
13:19today I bought my office. I've got a
13:21warehouse portfolio. I've bought
13:22apartment complexes. But now the typical
13:25deal is
13:26>> 10 cents on the dollar.
13:27>> Yeah. Well, my office costs like 50
13:29cents on the dollar. I got warehousing I
13:31bought for 30 cents on the dollar and
13:32it's like stabilized industrial today.
13:35>> So are you are you what's the event
13:37called?
13:38>> DPA Summit Distress Property
13:40Acquisition.
13:41>> So that's the that's the model you've
13:43kind of created.
13:44>> That's it. It just came out one day
13:46during a webinar. What is you're doing?
13:47We're buying distressed property,
13:48distressed property acquisition,
13:50>> the old DPA model. And there's there's a
13:53lot of people going, "Oh, it's another
13:54one of them real estate deals." No, it's
13:56a little bit different. I have tech so
13:58many text messages in my phone from
14:00people who have been through our program
14:02who've I have people that have come to
14:03our event and maybe flipped a house once
14:05before, maybe bought and sold their own
14:07house and literally go out and do deals.
14:08Now, at the end of the day, no, I'm not
14:10going to tell you everybody can do that.
14:11And I have countless messages in my
14:13phone of people that have left and gone.
14:15My program manager at my office has
14:18never bought a house except for her own.
14:20She came into my office, listened to us
14:22talking, watched a couple of the
14:23courses. Came into my office a couple
14:25maybe it was about two months after
14:27she'd been there. She said, "Logan, got
14:28this guy that wants me to wants to sell
14:30me his house for for $90,000. What
14:33should I do?" And I'm like, "Shell,
14:34you're not in acquisitions. What are you
14:36talking about?" She's like, "Well, me
14:36and my husband been calling these
14:38people." I was like, "How do you know to
14:38do this?" She's like, "I watched your
14:40stuff online." I'm like, "The free
14:41stuff?" She's like, "Yeah." So I said,
14:44"Let's take a look." "No, you can't pay
14:45him 70. You can pay him 60 though." She
14:48offered him 60. He took it. He clean the
14:51place out, hauled the trash out, no
14:52remodeling, and resold it for 170,000.
14:55So now in all,
14:56>> but how how?
14:58>> So this guy was delinquent on taxes.
15:00He'd moved somewhere else, and he
15:02frankly didn't want to fool with it at
15:04all. Now, most of this is like ownership
15:07and title problems. But let me give you
15:08like another another scenario that's
15:10kind of hard to understand unless I
15:12explain it this way. My studio manager
15:14is a musician. He loves music. I don't
15:16care. I haven't listen I don't I don't
15:18even turn the music on in my car but
15:19once every two weeks. He can't
15:21understand why I don't love music. I
15:23don't understand how he loves music so
15:24much. There are people in this world
15:26that don't care about finances. They
15:28don't care about property. They don't
15:28care about money. They care about other
15:30stuff. I don't understand those people.
15:32But those are the people that just want
15:33the burden off their back. So when I
15:35call them and say, "I'll take this
15:36mess." Sure.
15:38>> Well, I'll take all the messes that you
15:40can find.
15:41>> That's my job, baby.
15:43>> So, is that what you're teaching? So, it
15:45sounds like flippers should be going to
15:47this.
15:48>> You act, that's a really astute
15:49observation. So, flip house flippers,
15:51wholesalers, property wholesalers, land
15:54flippers, everybody that's in those part
15:56that midcap real estate stuff are
15:59sucking wind now. 95% of them are
16:01struggling so bad and our business is
16:04growing because their basis is usually
16:0670 80 cents on the dollar and their
16:08margin is at the top. We flip. We're
16:10buying down here. So when we go to
16:12market, I would rather the market be
16:14good because we make more money. But
16:15when it's bad, we just lower our price.
16:17Our inventory still moves. Ours is the
16:19fastest moving inventory on the market.
16:20>> You're buying it for fractions. You have
16:22the ability to lower the price, right?
16:23>> But my thought would be, well, there's
16:25those aren't everywhere. Those are like
16:27needle in a hay stack.
16:29I have friends doing this in Washington
16:31DC and it's one of the toughest markets
16:33in the world pro well in the United
16:35States. They're almost everywhere
16:39currently.
16:40>> Where's the best places? Distressed
16:43places. California values are really
16:45high. You've got some great stuff in
16:47Florida. That market is while it's a
16:49little softer than it's been, it's still
16:51elevated values. Um there's a ton of I
16:54mean
16:54>> so am I looking for red states, blue
16:57states?
16:58>> Not really. I mean,
16:59>> rich rich areas, poor areas.
17:01>> I've dealt with literally we found
17:02people under bridges that didn't that
17:04wanted the 500 bucks and didn't care.
17:06And I've dealt with CEOs at the top of a
17:0850 floor building who didn't want to
17:10deal with that side of their family.
17:11I've dealt with every walk of life,
17:12every ethnicity.
17:13>> How long you been doing this?
17:15>> 10 years.
17:16>> What's the most you made in one year?
17:19>> Total. A couple years ago, we did 40 in
17:21revenue. 40 mil just buying distressed
17:26property and dealing with the
17:28>> buying fix untangling the mess.
17:31>> Yeah. When the market was hot, we did it
17:33with a lot more commercial. When the
17:34market softened, the buying cycle for
17:36that was a lot tougher. So, we backed
17:38off of it and just moved down the price
17:40point. So, currently our total
17:42transaction values have shrunk, but
17:44we've still maintained the same profit.
17:46So, I'm happy.
17:48>> And is there like unlimited? Like
17:50there's enough for everybody?
17:52Yeah, I've had folks ask me, "Why are
17:54you teaching people? Why are you
17:55coaching this stuff?" And I mean, my
17:57response is, "I've got a great business.
17:58I'm growing it as fast as I can, but I
18:00can teach people, make money, and have
18:02an incredible joint venture business
18:04line that's developing while these
18:06people are getting rich. They're making
18:07a ton of money."
18:09>> Yeah. And the and you, unlike most of
18:11the of the real estate flippers out
18:13there, you you got case study after case
18:16study.
18:17>> You read one on my phone. What' that guy
18:19say?
18:19>> Yeah. Well, again, I mean, dude, it's
18:21like to me it's like, dude, number one,
18:23I'm going to be there uh for a couple
18:25reasons, but I'm going I might even go
18:28and attend, which I never do. I fly in,
18:30I talk, I leave
18:33you or I might fly in and, you know,
18:35hope no one notices I didn't get a
18:36ticket.
18:37>> Yeah, that ain't going to happen. You'll
18:38get a free ticket. That ain't going to
18:40happen. And we'll get you a big nice
18:41seat right up front if you want.
18:42>> No, I do want because I want to know. Uh
18:45only because again, dude, I have a large
18:48reach. I could on a regular basis figure
18:51out how to leverage the brand to get
18:53these distressed properties coming to me
18:56because it sounds like you you're one of
18:58the things you got to know is how do you
18:59find them?
19:00>> Well, if you have a reach and you know
19:02how to find them and you know how to
19:04underwrite them and you know how to
19:05untangle them. Am I am I coming to you
19:07for your FBI agents? Like I'm not I
19:09don't have FBI agents that are going to
19:11background check
19:12>> Yeah. Folks that are in our network,
19:13they've got access to all those
19:14resources. Now, at the end of the day,
19:16if someone doesn't want to work with us
19:17and use our people, that's fine. We've
19:20got a lot of ways to do this, but I tell
19:22them, go find a good f private
19:24investigator in your area. Go vet them.
19:26Make sure they're not a dirt bag or make
19:28sure they're good at this. Hire them.
19:30It's not rocket science.
19:30>> What do you think an individual if they
19:32took it full-time and and and took it
19:34very seriously that they would they they
19:36could make potentially? I'll say this,
19:40between 70 and 80% of the people that
19:42come through our coaching program are
19:44successful. And what I call successful
19:46is they paid the fee to get in and they
19:49walk out before the four months making a
19:50couple hundred thousand or more. There
19:52will be people at our event and they'll
19:54there will be a way that you can see who
19:56they are. I'm not going to tell you
19:57because like one of my favorite ideas
19:59ever, but you will be able to see who
20:01they are and how much they made. There
20:03will be hundreds of people at this
20:05event. Well, and you'll probably have I
20:08bet one in 10
20:10are successful. So, like a lot of guys
20:12that come through our program have got a
20:13housewife that came through. She got
20:15divorced, started flipping land, it
20:16wasn't working out for her. She's making
20:18400 grand after about 6 months on about
20:20a $50,000 investment. Another guy who's
20:23an outlier within his first nine months
20:25did 1.6 million. Now, ultimately, there
20:28are some people who just don't have it
20:29and they ain't got it nowhere. But when
20:31they got it, I got a text message on my
20:33phone. I showed you when I walked in. He
20:35went through last semester. He's at 1
20:38and a half or 17 in revenue for this
20:41year at a 50% margin. So, make three
20:42quarters of a million dollars. And he
20:44said, "I already have enough in the
20:45pipeline. If I can sell it all by next
20:46year, I'll make 3.2 next year at a 50%
20:48margin."
20:52>> There's a lot of people that it works
20:53for.
20:53>> What's the horror stories?
20:56>> What do you mean?
20:57>> Like, when's it go wrong?
20:58>> There's got to be a horror story. Like,
21:01>> yeah,
21:01>> I got eight to sign off and that ninth
21:04bastard said no.
21:06>> Okay, here we go. Here's the other part.
21:08So, the first time that happened to me
21:10was probably two or three years in, I
21:13bought a brother. Brother said, my
21:15brother's a monster. You can have this
21:17property is worth 150 grand. So, 75,000
21:20was his share. 75,000 was his brother's.
21:22I buy his $75,000 share for 10 grand.
21:26Lawyer closes it. His daughters are
21:27there as witnesses. I don't want anybody
21:28saying it wasn't straight. Done. Close.
21:31I call the brother and say, "What do you
21:32want to do?" The guy's a lunatic. He
21:34wants a million dollars for his share.
21:37So, I have to go back to the guy and
21:38say, "Look, man, I don't want to do
21:40this. The house is vacant. There's money
21:42owed in taxes. It's going to be lost
21:44eventually. We've got to work this out.
21:46Your brother didn't want to do it. I'll
21:47do it." So, we had to file what's known
21:48as a partition lawsuit, which is an
21:50absolute right in the United States. You
21:52have the right to sell the property and
21:54split the money. So, as long as you make
21:57equity on the front end, you can still
21:59make money there.
22:00>> So, so if one brother sells that it's
22:03now half your house.
22:05>> Yeah. That that conversation is usually
22:07really polite and diplomatic. I don't
22:08want to start a fight. But, you know,
22:10towards the end it's like, "All right,
22:11we're business partners. What do you
22:12want to do, partner?"
22:15>> Well, I mean, again, if I was the
22:17brother, I'd be like, "Well,
22:19sell it and cut me half my check."
22:21>> So, that So, I make offers to people.
22:23Sometimes we get to a point where like I
22:24got 80% and the remaining 20% doesn't
22:26want to cut a deal. I've done great on
22:28the first 80. I have plenty of equity.
22:29Let's just go to market together. Now,
22:30it's not my first offer obviously
22:32because I want to earn a living. But
22:33when you get to that point, let's go to
22:34market together. The dude wouldn't even
22:36do that. That's why I go hat in hand
22:38with a guy. I'll never forget that dude.
22:41It was a huge deal. I went to his house
22:42probably 25 times that summer and would
22:45beg him like kindly and politely, please
22:47don't do this. Please don't make me do
22:49this. This is not what I want to do. I
22:50exhausted every ounce of care I had and
22:54then at that point I cared no longer and
22:56we had to go do it.
22:56>> How do you how did you know that you
22:58could do these things? You had to did
23:00you have a lawyer on your side or
23:02something?
23:03>> You know the frustrating part about that
23:05is real estate attorneys are very
23:06transactional or you got some litigation
23:08guys but there are not many in this like
23:10would be called curative title space. So
23:13title company referred me over to their
23:15fee lawyer who didn't litigate didn't
23:17solve major title problems which I was
23:18shocked. He sent me to another one. and
23:20he said, "I don't think you can fix
23:21this, Logan." I said, "Okay, I'm going
23:23to come to your office and I'm just
23:24going to pay you by the hour and I'm
23:25going to ask you a bunch of questions
23:26and you tell me the answers and if
23:28you're willing to do that, let's see if
23:30I can figure this out." So, over the
23:32course of that summer, going back to
23:33that guy's office, will this work? Will
23:35that work? No. Let me call my friend
23:36that's a judge. Let's try this. Why
23:38don't you go try this? I come back a
23:39week later. At the end of that summer, I
23:41got it done. There were five owners on
23:43that deal. Tons of judgments and leans.
23:44There was a break in the title chain. It
23:46was a train wreck. And he's like,
23:47"Logan, I'm shocked that this worked."
23:49That's how the first like couple
23:51projects actually went.
23:53>> So, are you just like lucky or how do
23:56you how did you know that these will
23:59work? Like most people just give up,
24:01which is why it's technically worthless
24:03and distressed and you come along and
24:05act like no, all you got to do is dust
24:07it off a little bit.
24:09I mean, that's I think that's something
24:11that was my personality is willing to
24:12take a risk. But when you're going into
24:15a deal, what is your risk? It's the
24:17dollars that you have into it. So if you
24:18have 10 million in a deal, you have 10
24:20million at risk. If you have $500 at
24:22risk, you have 500 at risk. You throw
24:25500 at almost any risk. If you had a big
24:28upside, well, you'd think differently
24:29about 10 million. So in my mind, to me,
24:32that was very inherent. A lot of people
24:33didn't get that in the beginning, but
24:35when there was a problem, I would just
24:36go to him and say, "This is a train
24:37wreck, dude. I can't give you 20 20
24:3930,000. I give you 500 bucks." And a lot
24:42of people told me no, but a lot of them
24:44told me yes. And when they said yes, I
24:45thought, "All right, I'll spend 10 grand
24:47in legal fees. I'm going to take a shot
24:48because if I can make 50 or 100 grand,
24:49like this is a good payday."
24:51>> Do you do you follow up and see do you
24:53follow up and see if uh if they're like
24:57willing to after they told you no?
25:01>> Yeah. So, there's there's strategy
25:03involved there. So, like when you look
25:04at a property, the first thing is that
25:06where's the problem? So, sometimes it's
25:08not a bunch of owners. Sometimes it's a
25:09massive judgment and
25:12you've got to look at all those things
25:14within about a 10-minute research
25:15window. You can look at it and say,
25:16"Okay, it's got multiple owners. Okay,
25:18it's got like judgments and leans
25:20against it or it's got an old break in
25:21the tile chain." Once you know what
25:23you're doing, you can see that in
25:24research in five or 10 minutes. At that
25:26point, I step back and say, "Dude, it's
25:27only worth 80 grand. Move on." Oh, it's
25:31worth 700,000 and there's a $100,000
25:34mortgage left. Okay, we can play ball.
25:36So, at that point, we start to go in and
25:38and size all that up and start making
25:40offers.
25:40>> And you're teaching me that that's
25:42essentially underwriting.
25:44>> That's it. That's underwriting 100%.
25:45>> So, you're teach when people do tell me
25:47no, sometimes I just say, "Okay, there's
25:50more people than I can even count out
25:52there that need this solved. So, if you
25:54want to work with me, great. If not, I
25:55got to go to the next one."
25:59>> And a lot of people just say, "All
26:00right, fine." Cuz what are they doing
26:02with the property if it's all encumbered
26:04like that anyway?
26:05>> Nothing. It's not in service. They're
26:07not paying mortgage or taxes on it. No
26:09one's using it. Well, usually they're
26:11not.
26:12>> You would think that. You would think.
26:13Are there ever squatters and
26:15>> Oh my gosh. I wish I had this video
26:17right now. Can we play a video on here?
26:20>> If you send it, I can play it on the
26:22show.
26:23>> All right, I'm going to send this out.
26:24>> Normally, that's supposed to be able to
26:26play videos, but for some reason, I
26:27can't.
26:29>> All right, I'm going to send you this
26:30video. We bought a property. Well, we
26:32came across a property that was about to
26:33go to tax foreclosure sale. This was
26:35this some not all of them are like that.
26:37Some of them have other problems, but
26:38this one was about to be lost. Call the
26:40owners. They say, "Sure, we'll take five
26:41or 10 grand." Pay them, buy all the
26:43owners, do the legal work to get the
26:44title in their name with the right
26:46affidavits and some court stuff. And
26:49then this was in a city that we' never
26:51been to and the property is worth 150
26:53grand. I think we're in it for like 10
26:55or 20, something like that. We send a
26:57trash out company over there. We call a
26:59realtor and say, "Go get us the value.
27:00Take some pictures. Send the trash out
27:02company." trash out company comes back
27:04and says, "This thing's full of
27:05furniture and cars." We're like, "Well,
27:06we own it. We've got the court orders."
27:09So, we trash it all out, throw it all
27:10away. I get a call the next week and the
27:12guy says, "That's my office. You threw
27:15all my stuff away. You owe me 100
27:17grand."
27:18So, we go look and there's an adverse
27:20possession affidavit he filed and he
27:22says, "I'm taking that place over." And
27:24I was like, "Dude, there are pillars of
27:25adverse possession. It's statutory and
27:27you did all but you didn't pay the
27:28taxes." I did and I got the deed.
27:30Anyway, we sued him to get that wiped
27:32out. Three months later, it was a quick
27:34one and we got an order for title. So, I
27:37have a a phone call with my business
27:38partner calling him. Basically, he was
27:40going to appeal. We called him and said,
27:41"Look, we'll give you a couple thousand
27:42dollars if you don't appeal." And it's a
27:44hilarious phone call. And we got it
27:46recorded, so we'll put it on here. Yes,
27:49we deal with squatters a lot, but
27:50there's always an answer in the judicial
27:51system. That's something people ask a
27:53lot. What happens if you can't fix it?
27:55You can't. There's always an answer in
27:57front of a judge, but the question is,
27:59is the juice worth the squeeze?
28:01>> Yeah. Well, again, I mean, that's that
28:03why underwriting, you need to know that
28:05because if I saw an empty lot, I don't
28:07even know where to find the owner. How
28:09do you find the owner? How do you even
28:10know who to offer, who to talk to, where
28:12to start?
28:14>> Go right to the deed records. Everything
28:16you needed records.
28:17>> The deed records are free and they're
28:19online in most counties. So, if I said,
28:22"Hey, dude, show me show me how to do
28:25this." Um, from from tip to tail,
28:31how long would it take you if you worked
28:33if me and you sat for six hours a day?
28:37>> Oh gosh.
28:39I bet within 30 days, you'd be as good
28:42as the acquisition guys in my office,
28:43cuz that's about how long it takes for
28:44them to know what they're doing. It
28:46takes them a little bit more time to
28:47negotiate and get comfortable on the
28:48phone, but within 30 days,
28:49>> I got that part down.
28:51>> You're good at that.
28:52>> Yeah. Like I know how to negotiate.
28:54That's why I'm saying a lot of the
28:55flippers and realtors and and people
28:57that listen to this show, like if I were
28:59them, I'd be like heading to Scottsdale
29:01cuz dude, this is like once you teach
29:04me, I can go out and make myself a half
29:07mill million a year and and parlay that
29:10into like a multi-million dollar DPA
29:13business. The way we built this was not
29:15with borrowed money. It was my money, my
29:16partner's money, and we just grew it.
29:19We'd do two deals, get the third one. We
29:22had this thing in the beginning. We're
29:23buying rent houses. We don't do rent
29:24houses anymore, but it was buy three,
29:26get one free. We'd buy three, sell off
29:29the other two, and to pay for this, we
29:30have our money back, go do the next one.
29:31And that's part of why it took a little
29:32while to get rolling, but we funded with
29:34cash. And it was not a huge amount in
29:36the beginning, but over time it started
29:38to grow, and it was all cash. So, we
29:40didn't use any debt.
29:41>> Do you now? Yeah, we use credit like
29:44commercial credit lines and we have
29:45significant equity now. So that's
29:47different today. But like in the early
29:49days, I'm offering someone 5,000 bucks
29:51and I'm taking the property subject to
29:52all these debts and I'm going to go get
29:53it to market.
29:54>> Then what would you do with the
29:55property?
29:56>> Oh, goes to the listing service. I don't
29:58want this real estate. This is this is
30:00inventory. These are widgets.
30:02>> And nine times out of 10, this probably
30:03not in the best neighborhoods anyway.
30:05>> You know, the interesting part is
30:07there's no bad product, only bad
30:08pricing. There is always somebody out
30:10there who wants some real estate. If
30:12it's a crummy neighborhood, which I
30:13usually stay out of these days, I take
30:15that back. Low value. There are a lot of
30:17scary neighborhoods that are valuable
30:19because they're changing. So, that's a
30:20good place to play. But if it's a very
30:23low price point neighborhood, I try to
30:25stay out of it. It's not worth it.
30:26>> So, like little small hick towns that no
30:29one's heard of. Probably not the best
30:31place.
30:31>> Not for a house, but we buy ranches all
30:33around those. And you can get We just
30:35picked up 200 acres in the last couple
30:36weeks. I think combined we're all in for
30:4030 grand. Why don't you but sell it to
30:42me for 35 and quit being a dick.
30:44>> Why would I do that?
30:45>> Because
30:47you know how to you know how you know
30:49how to do it. You could do more. I don't
30:52know how to do it.
30:53>> I know, right?
30:54>> I'll give you 35.
30:55>> I'll tell you what. You come work in my
30:56office for 12 months and I got you.
30:57>> How about 40?
30:59>> Give you 40. What's it worth?
31:01>> That's her job. It goes to the MLS and
31:03she's You got to negotiate with her on
31:04that. That ain't my job.
31:06>> Yeah. You know, one time I was in the
31:08car business and some somebody just
31:11wanted to get rid of their vehicle.
31:12Like, it was the craziest thing. And I
31:14didn't understand. I thought, man,
31:15there's got to be a trick here. We're
31:17getting scammed. You know, basically,
31:19they wanted 10,000 bucks for a car that
31:21was clearly worth 50. And so, the
31:24>> Do you think it was stolen or something?
31:26>> Well, we we thought something. So, so
31:29turns out freaking, you know, the the
31:32people I'm working for didn't want to do
31:34it. So, I called my buddy and I said,
31:36"Hey, dude, you loan me 10 grand." He
31:38goes, "For what?" And I said, "I'm going
31:40to buy a car that's worth 50 and then
31:43I'm going to freaking sell it and give
31:45you back 10 grand."
31:46>> How'd it go?
31:47>> He said, "Yeah, but I want, you know,
31:50how much you giving me back?" And I
31:51said, "I'll give you 15." He said,
31:53"Okay, how fast?" I said, "Dude, I'll
31:55have it sold within Give me a month." He
31:57said, "Okay, deal." So, he gave me the
31:5910 grand. I ran over, gave the dude 10
32:01grand,
32:03sold it. It's like, dude, it was like
32:05there's nothing wrong with this car or
32:07title. It was like the goo the dude just
32:09for some reason wanted out. Everyone was
32:11like, "Well, who would do that?" I don't
32:13know, but he did it. Now, you can't
32:15start a business on that. That was just
32:17right place, right time. Like one time I
32:19went garage salailing and this older
32:22lady answered or was her garage sale.
32:25She was walking around her uh her garage
32:27sale and there was cool things in this
32:29garage sale, but there was a car with a
32:31tarp over it. And I said, "What's under
32:34the tarp?" And she pulled off the tarp.
32:36She said, "Oh, that was my husband's
32:37car." And it was a 65 Mustang.
32:40And I'm like, "How much you want for
32:42that?" And she said, "Oh, I don't know."
32:44She said, "Um, since her husband died,
32:46it hasn't been driven. You know, there
32:48was like 1,500 miles on it. Like, it was
32:51just pristine, this car." And I said, I
32:54said, "Well, what do you want for the
32:55car?" And she said, "You know, I don't
32:57know. I I think he paid like, you know,
33:012500.
33:03And I'm like, yeah, you know, what do
33:06you want? She goes, would you give me
33:09two? I said, two what,000?
33:13She said, yeah, would you give me 2,000
33:15for it? I'm like, well, well, hell yeah,
33:18I'll give you 2,000 for it. So, like, I
33:20didn't have 2,000. I had to go figure
33:22that one out, too. But we ended up
33:23buying that car for 2,000 bucks. It was
33:26a 65 Mustang. Now, this was back when
33:28they weren't worth as much as they would
33:30be today. But
33:30>> still, that's
33:31>> Dude, you can't make a business out of
33:34that is my point. Like, I got lucky. I'm
33:36a lucky guy.
33:38>> Well, you brought up another really
33:40interesting point. Let me I'm sorry to
33:41interrupt you, but let me tell you this.
33:42So, when folks tell me all the time, I
33:44don't have any money. How am I going to
33:46do this? And I'm just like, I'm lost.
33:49I've never had that problem. When I find
33:51a deal that I can't I've had deals that
33:52I couldn't pay for early on this
33:54business, I would get on the phone and
33:55call them immediately just like you did
33:57>> and call me. I'll pay for deals if
33:59someone can't fund them.
34:00>> Well, I tell them that, but I tell this
34:01to people my DMs all the time. What if I
34:04don't have the money? And I'm like, if
34:05you're about to buy a $100,000 property
34:06for $10,000, you can't find sell your
34:09damn car. Go do this and then go buy you
34:12a new car. It's not that complicated.
34:14And
34:14>> call me
34:15>> or call you or call.
34:16>> Do you have a Do you have a hedge fund
34:17put together for situations like that?
34:20No, but we do have a pretty significant
34:22JV pipeline. So, I'm not going to lend
34:23the money on that because lending on
34:25this business is not a good business to
34:27lend in. But
34:28>> because you still have some risk if the
34:31operator defaults, I got to go and do
34:32this project.
34:34>> I'll just lend to them for 50% take and
34:37then I'll help them solve any of the
34:38problems that they run into and I'll be
34:40their partner on it. So,
34:41>> you're not lending. Yeah, you're
34:42partnering,
34:43>> right? Yeah. Well, I mean,
34:46>> that's worth Well, again, I would lend
34:49uh also, but I'm assuming I'm going to
34:51lend once it's free and clear,
34:55>> right? So, in our case, you got to
34:58understand,
34:59>> like you got to own the then I'll
35:01lend.
35:02>> But you you're So, the person's going to
35:04risk the 10 grand
35:06>> not knowing full well that they can
35:07untangle it. Well, the good news is if
35:10you know what you're doing, you have a
35:11reasonable amount of training, you can
35:12run a title report, you can run a little
35:14bit of ancestry work and figure out, you
35:16also can do a deed search and see, you
35:19can 80% size up the problem like right
35:22off the bat. And at that point, there's
35:23enough confidence as long as you're
35:25entering low and it makes sense. If you
35:27run into a big snag, there's so much
35:28margin, you can sacrifice and have some
35:30margin fade to get the problem solved.
35:32Even if you got to follow a lawsuit,
35:33even if you have to overpay somebody,
35:34it's okay.
35:37That's part of why you have to have a
35:38low risk on your entry point because you
35:40can make mistakes, but you don't want to
35:41lose your butt.
35:43>> Yeah. Well, again, I mean, if you're
35:44coming in at 10 cents on the dollar, you
35:46can make quite a few mistakes.
35:49>> Let me tell you about one that happened.
35:50I would just be offended, though, if you
35:52came to me and you said, "Hey, looks
35:54like you're the third owner of a
35:56property over here." And I'm like,
35:57"Yeah, these two we can't get
35:59along and it's just sitting there, but
36:01I'll be patient. They'll eventually need
36:03money and I'll buy it." Then I might be
36:06the guy that says no.
36:07>> But if they didn't like you and I called
36:10them and they said yes to me, then I
36:11would call you and be like, "Hey, Brad,
36:13we're partners. What should we do?"
36:15>> Or what if we're I mean, how do you know
36:17that they own a third? If there's three
36:18owners
36:19>> Mhm.
36:20>> on a piece of property. How do you know
36:22it's all a third? A third. A third.
36:24>> It might be you 50%. It might be 25. It
36:26depends. That's part of where the
36:27research comes in. So, you know,
36:29>> but it does show somewhere at some point
36:31what percentage
36:32>> you got to look it up. Yeah.
36:33>> Yeah. So eventually, dude, that's it.
36:35Like, you're just you're just finding
36:37these deals. Now, how many can you find?
36:39Because you're claiming you can make a
36:42business out of this. Well, why are they
36:44everywhere? I'll give you an example.
36:46Tax deeds.
36:46>> Yep.
36:47>> Tax leans. I mean,
36:49>> you go to a county, there is tons
36:53of properties that have tax leans. Now,
36:56if you it's not as good as what you're
36:57talking about, but if you pay those tax
36:59lans in certain counties,
37:02uh you know, the county will tell you
37:06that I will either give you the property
37:08or your money in 25%. So, basically,
37:11it's 25% return on your money guaranteed
37:13by law, or you get the property free and
37:17clear. So, like that to me is like a
37:18no-brainer. And and if someone wanted to
37:21do that and they knew what they were
37:22doing, dude, there's unlimited houses
37:26with tax lanes. But but you yours is so
37:29good. It makes me think are I know, but
37:32yours is so good. It makes me think,
37:34>> is there enough around the world to to
37:37literally make a business out of it?
37:38>> So when you're going to go buy that tax
37:40lean, I'm calling those people before
37:42you have the ability to buy the tax lean
37:43when the notice is posted and I'm
37:44saying, "Hey, let's clean this up. Let
37:46me get you out of this." And then I buy
37:48it. I take it off that lean roster so
37:49you don't get to buy the lean. So every
37:51guy that has an opportunity to buy a
37:52lean out there or a tax deed, I'm there
37:55before him or there's enough of those
37:56that I can be there before him for it
37:58>> is.
37:59>> So every opportunity, but that's only
38:01those that are at a a tax lean or deed
38:03situation. There's ownership problems.
38:05There's other judgments and leans that
38:06are non-t taxed. It's multiples of that.
38:09>> So where is your database? Where do you
38:10go to start?
38:11>> Public records in the county that you're
38:13interested in. So, the public records
38:15can be the docket search, the tax
38:18appraisal office, um, or the deed
38:21records, those three places.
38:23>> And by the time I leave that event, I'll
38:25know exactly how to do that.
38:26>> Yeah. I've got a researcher there that's
38:28actually going to walk through step by
38:29step on what to find, what to look for,
38:32and what it means.
38:35And I I'm asking rhetorically because I
38:38already know you said many stories of
38:40people leaving there and going and
38:42executing. But what you're saying is
38:45I'll I'll learn enough at this event.
38:47What is it? Two days, one day.
38:49>> Yeah. Our general admission is a full
38:50day. The VIP is two.
38:52>> So I'll leave this thing and literally
38:55be able to execute if I got the time,
38:57money, and and and balls.
38:59>> You will have the information to
39:00execute. If you're able to execute,
39:02that's on you. But the roadmap that I've
39:05built over the last 10 years is what I
39:06deliver. And at the end of the day,
39:08coaching education is fun. I love it.
39:10It's a good revenue stream. But I'm
39:11never going to risk my reputation for
39:12that kind of revenue when I have a
39:14thriving business. So that's why we have
39:16to deliver so well, which is why I have
39:18the confidence in it.
39:19>> Yeah. But this this is also why you you
39:22sell these events out without any
39:24freaking major advertising.
39:26>> That's why because nobody is doing it.
39:28>> Not to mention, you have proof that it
39:32works. That's true. Yeah. Just like uh
39:35you know back in the day nobody was
39:37really understanding multif family and
39:40you know storage facilities and now 10
39:44years later oh that's dried up.
39:46Everybody's in that.
39:48>> I think those are actually more simple.
39:49I know that sounds strange cuz you look
39:51at a 250 unit apartment complex. It's
39:53not simple or it doesn't look simple but
39:56you get a a semi-sophisticated person to
39:58look at it and say this is the income,
39:59these are the expenses. How do we pay
40:01for this? Now, operations are different,
40:03but like vetting those deals is a little
40:06easier. This takes some skill and some
40:08knowledge. You've got to have the
40:09information. Like, you know, I mean, I'm
40:11not, you know, I didn't go to med school
40:12or law school or any of that stuff. So,
40:15you don't have to have any of that, but
40:16you do have to pay attention. You have
40:17to go through some training. You have to
40:18learn because when you've got, let I'll
40:20give you an example. I had a property
40:22that was this was a long time ago in the
40:23early days. I think it was worth 75
40:24grand. I paid $5,000 to the lady for it,
40:27but it had a lean against it that was
40:30written by an attorney. I'm sorry, it
40:32wasn't a lean. She deeded the property
40:34to him because he was defending her
40:36daughter in a criminal case. He was
40:38going to deed it back to her afterwards,
40:39but that attorney had workforce
40:41commission leans against him. When the
40:44title went from her, through him, and
40:46back to her, it would pick up those
40:48leans and encumber the title. So in that
40:51case, we had to file a cancellation deed
40:53that cancelled that transaction instead
40:55of recirculated it to remove that
40:57incumbrance from the title. So there are
40:59some technical things, but you our job
41:03is not to teach you every technical
41:04thing. Our job is to teach you how to
41:06find the answer to those technical
41:07things. And they're not that hard to
41:08solve, but you need to know how to find
41:09the answers. That's our job. We can do
41:11that.
41:12>> Is finding the properties easy?
41:14>> Find the prop the properties are easy to
41:16find. Finding the problem is relatively
41:18easy. Finding the solution takes a a
41:21little bit more skill because you got to
41:22know how to find it and then you have to
41:24use your brain to figure out the answer.
41:25But
41:26>> or tap into your brain.
41:28>> Yeah, we do that
41:29>> because if I'm in your if I'm in a
41:30program of yours, I can just call you
41:32and say, "Hey, here's the problem." And
41:34you'd go do this, do that.
41:35>> So that's where our program set up. Guys
41:37go and find them. They bring them back
41:39and we walk them through every single
41:40solution. And by the time that thing's
41:43over with, they have learned the
41:44framework inherently. There's still
41:46millions of new problems for them to
41:47learn to solve, but they learn the
41:48framework to solve them. So, they're
41:49off.
41:50>> Can you buy and hold?
41:52>> Well, I do that with the commercial
41:53assets, but the anything not commercial,
41:56I don't. I just circulate it for income.
42:00>> But but maybe I don't care about income.
42:02I I want assets.
42:04>> Yeah. If you want to keep them, you can.
42:06I just want assets because I' I've spent
42:09so long blowing money and trying to look
42:11cool instead of actually be cool that
42:14now I'm behind. I I need assets. I need
42:16to die with something.
42:18>> So you don't want to do a mobile home on
42:2010 acres. You don't want that asset.
42:22>> No. Like I'd come across them and flip
42:24them too. But like you said you had an
42:26apartment building or something and you
42:27found
42:28>> your office that way. Like that's type
42:30Like I wish I found this one that
42:32way.
42:33the prob this is a high enough value
42:35that the probability would be low. But
42:37when I got mine, the economy was soft.
42:39They were in this nasty bankruptcy with
42:41fraud allegations and all this stuff and
42:43it was a great time. Um, and I had to do
42:45some some updates to the thing, too.
42:47>> But how did you find it?
42:49>> Bankruptcy and relationships. So, the
42:51bankruptcy was present and that one
42:53actually was referred to me by somebody.
42:55And the moment I met the owner and
42:56talked through it a little bit, I
42:57started to do some research just to find
42:59out the background. And I realized, oh
43:01my god, this is one of our deals.
43:04So instead of doing a four-month close
43:06and all this diligence, I made him a
43:08hard close, 30 days, no diligence. We'll
43:11take it, but here's my price. And he
43:14said, "No, no, it's not going to work. I
43:16need this price." And I said, "That's
43:17not going to work. I understand. I
43:19appreciate it. Thank you. There's
43:20another person out there. They needed
43:23the money for the bankruptcy.
43:25Yeah. See, so that's where I'm
43:27struggling to wrap my head around. And
43:29there's lots of people in those
43:30situations.
43:31>> Yeah. When you're involved and you start
43:32to talk about it and and people start to
43:34know, things will come your way. But in
43:36the beginning, you have to go find them.
43:38Like we spent five, six, seven years
43:40just going out to find them. Over time,
43:42if you do that, they start to come back
43:43to you without having to look as hard.
43:45>> So now you're just getting all kinds of
43:47people because they know you.
43:49>> I do get a lot of that. Now, we still
43:51have nine guys in our office that are
43:53doing outbound looking all day long.
43:55They're doing the research. They're
43:56doing
43:56>> for you to buy.
43:57>> Yes.
43:58>> You should extend that to your your
44:00group. Like, I'd pay I'd pay if you'd
44:03send me some.
44:04>> I know, but I'm still stuck on that. Why
44:06would I give the equity up?
44:08>> Because you can't buy them all.
44:10>> At this point, we have enough credit and
44:11money to buy all the ones we can find.
44:14So, there are more deals than we have
44:16money. But you know that takes hiring
44:18people, nurturing people, growing as you
44:20know. So you grow as fast as you can.
44:22There's also a place where like you grow
44:24that business. It's a lot of work. But
44:25you say how big does it need to be? Like
44:28this is a really great income. And today
44:30instead of me adding people, we're just
44:32increasing the deal size. So instead of
44:33doing these 100, $200,000 deals, we're
44:36looking at million, two million. So we
44:38start to grow the revenue by
44:40transactional size, not volume. If
44:43someone here's listening with an
44:44encumbered property
44:46>> and and they should call me, they
44:49should. They should.
44:50>> And then you'll call me and I'll tell
44:51you how.
44:51>> Exactly. Um
44:53>> you'd be shocked though. There are
44:54people in commercial situations that
44:56have trouble and they don't want to go
44:57public with it. But they'll call someone
44:58and say, "Brad, I got trouble, man. I
45:00don't know what to do about this. My
45:02home is in the most expensive community
45:05in San Antonio." That dude was 100 grand
45:08behind on his taxes. And that's probably
45:10the only tax delinquent property in the
45:12whole place.
45:14It's not tax delinquent anymore.
45:17>> How come you pay it?
45:18>> Because we pay our taxes. We bought it.
45:20Yeah.
45:21>> So, am I going to a tax uh through tax
45:24records? Because if they're all tax
45:26leaned up, that sounds like just go look
45:29and call people who have tax leans.
45:31>> So, after a couple years of doing this,
45:33at the end of the year, I went back and
45:34said, "Where were our best deals? Where'
45:35they come from?" And the two places I
45:37found were the docket search and the tax
45:39records. A lot of times when a property
45:41is delinquent on taxes, it usually
45:43doesn't have a mortgage. If it has a
45:45mortgage, the lender will pay it or
45:47you're in default as a borrower and
45:48they'll foreclose. So when you find a
45:50tax delinquent property, that means no
45:52mortgage, that means larger equity. And
45:54usually if a property is that old, has
45:57no mortgage, has that much equity, and
46:00has delinquent taxes, there's probably a
46:03problem. So that's a really good
46:05scenario. But the docket search is a
46:07great place to because lawsuits against
46:09people, fights, all these other
46:11judgments and leans that are non-t tax
46:13related, they're big red flags.
46:18>> Where did you find your FBI agents? Just
46:21relationships, put it in.
46:23>> Yeah, a local financial planner.
46:26>> Yeah, this ain't no Upwork. Yeah, it was
46:28a local financial planner that we knew
46:30that deals with like local celebs and
46:33business partner of mine was friends
46:34with her.
46:36We were having a meeting one day and we
46:37said the local PI who is a sheriff or a
46:39deputy sheriff had to go back full-time
46:41and we lost him. She said, 'You should
46:43call these people.
46:47>> Almost makes me pissed like I didn't
46:49meet you earlier. I could already be
46:51buying these some
46:52>> I look around and say, gosh, this office
46:54is nicer than mine.
46:56>> Well, that's cuz
46:56>> so I don't know.
46:57>> Well, again, that's cuz I look cool.
47:00That's where all my money is. You know,
47:02I will tell you, we have lived far below
47:04our means for so long and have been very
47:06frugal and careful. And that's what's
47:08allowed us to grow this with equity
47:09without taking investors and it's
47:12created a factor of stability where when
47:14a deal comes across, you know, our desk,
47:17we're pretty much able to do anything
47:18that comes across our desk. I mean, now
47:20these aren't like $60 million deals.
47:22You're talking
47:2523 million is usually on the top end of
47:27this stuff. Once you start getting
47:29higher up, you have much more
47:30sophisticated buyers and sellers, and
47:32it's really tough to get in those.
47:34>> So, the two to three million, is that
47:36what they're worth, or is that what is
47:38that?
47:38>> That's value.
47:39>> Yeah.
47:39>> So, value. So, so you're you're buying
47:41them for 100 200 grand.
47:43>> I got a two and a $2.3 million 50acre
47:46track land just outside of Big MSA
47:49not long ago for 130,000.
47:52You know, that's at the top end. But
47:54another part is when the value starts to
47:56get that high, we can obviously pay more
47:58because they're a lot of dollars. So
48:00like sometimes I'll take those for 50
48:02cents on the dollar. I bought a
48:03warehouse is a 25,000t warehouse. I sold
48:07that one for 3.2 or 3.3 and I was in it
48:11for 15.
48:13Now it had a defaulting tenant. The
48:16owner was the tenant wasn't paying the
48:18taxes because a net lease and the tenant
48:20wasn't paying the owner and the owner
48:22had a drinking problem. hadn't left his
48:23house in two years and he was a marble
48:26like a granite yard and had about
48:28$150,000 worth of haul out work with
48:31granite laying around. So it was a train
48:33it was a train wreck actually. So we
48:35bought it hauled all the stuff out. We
48:38had a judgment against that guy. We had
48:39to pay off some taxes and that sue the
48:41tenant to get him going. So it cost like
48:45a lot of the marble I got hauled off if
48:46I let him keep it. But we were in that
48:48thing for 1617 when it was done. How's
48:51your mind mentally dealing with all this
48:54negativity and turmoil and depression?
48:58>> My side ain't negative.
49:00>> Smile on the face.
49:00>> Does it affect you at all?
49:02>> No. The first time you get sued, so the
49:06first time you get sued, it's kind of
49:07uncomfortable because it's never
49:09happened and you start you get scared.
49:11But like today, I'm usually plaintiff in
49:13about 50 lawsuits at any time because
49:15you
49:15>> You are?
49:16>> Yeah.
49:19But you've got like there's always a
49:21solve in the judicial system with the
49:22volume we have. You have to get there
49:24sometimes. So some of them are just
49:25curative title lawsuits to fix a title
49:27problem. Some of them are suing a
49:29counterparty because you have to deal
49:30with a real problem. Sometimes people do
49:33bad stuff to each other and I'll buy
49:34this person's interest in property uh an
49:38estate like their an actual estate and
49:41they will assign their rights and claims
49:43to the wrongs that have been done to
49:45them to me. So I have claims now the
49:48wrongs that that brother did to them,
49:50they've actually done them to me. So
49:51that's a that's an asset. So you can
49:53file a lawsuit for equitable
49:55reimbursement on that.
49:56>> Yeah. That's almost a whole another
49:58business.
49:59>> It became a it kind of spun out of this.
50:01It's one of those things you don't go
50:02looking for it, but as you start to
50:03understand these things when you spend
50:04that much time in the judicial system,
50:06you understand, oh, there's 10 or 15
50:08different plays. We usually run these
50:09three, but every once in a while when
50:11this happens, let's run that play
50:13because we know it.
50:14>> Yeah. So that's like a that's like a
50:17legal course almost.
50:19>> Yeah. So I'm not a lawyer, but I in this
50:23area I'm would probably be willing to go
50:25up against most of them.
50:27>> So what's your goal? What's your where
50:29you heading over the next five years?
50:31Where do you see yourself? Just keep
50:32doing this or you plan on like retiring?
50:36>> No, I don't think idle hands a double
50:38workshop, especially somebody with a
50:40past like mine. So I think I need to
50:41keep busy. But I like this. I have great
50:43partners. We have great people in our
50:45office. I'm meeting incredible people.
50:46We earn a lot of money. I don't know
50:48that I necessarily have a dollar goal,
50:49but you know, I have four kids and a
50:51wife and
50:53we've got a pretty fun life. So, I think
50:55we just I don't know, keep doing what
50:57we're doing. This is great.
50:58>> Is your staff handling all this or
51:02>> Yeah, the way I've organized this is we
51:03have really good people. Everybody's
51:05really well trained. We have really
51:06sticky people. That's something that I
51:08found early on. When you spend this
51:10amount of time training people, you
51:12can't afford to lose them. You just
51:13absolutely can't because it would
51:14destroy a company like mine. So, we take
51:16care of them, pay them well, we train
51:17them well, we treat them well, they
51:19stick around and in turn, like it works
51:21well for me because I can be in Vegas
51:23talking to Brad with my wife and my
51:25friends and help promote the business.
51:28>> If you wanted to like go away for like
51:30three months, could your office operate
51:32completely without you?
51:34>> This is how I learned. Me and my wife
51:36bought a house. We lived in it for 5
51:38years and we decided we're going to do
51:39this massive remod. It's going to be our
51:41dream home. And I went to that house and
51:43decided to be like an idiot. The project
51:44manager was the stupidest choice but one
51:46of the smartest in business. I spent
51:47nine months on site drywall framing all
51:51the contractors managing them. And my
51:52office kept calling me calling me. And I
51:55was like, "Guys, I'll call you tonight."
51:56And I was sleepy and I was tired. And
51:58I'd call the next day. After a couple
51:59weeks, they quit calling me. And I'd
52:02continue to look at the books. I'm
52:03looking at everything. It's working. And
52:05about three or four months in, I'm like,
52:06"Good job, guys. You got it." So, I go
52:09there. I love this. I like growing it.
52:10But it worked pretty good for nine
52:12months of me not calling but once a
52:14week.
52:15>> So you're all just living now, huh?
52:21>> What makes you want to teach other
52:23people just for fun?
52:25>> Yeah. When somebody came to me and said,
52:27"Look, I'll offer you this kind of
52:28money." Somebody showed up to a speaking
52:30deal. I was doing it because it was fun.
52:31Guy came and said, "Hey, I'll pay you
52:33this money." And it was a lot for a very
52:35short amount of time. I thought, "Well,
52:36that'd be fun. Let's see if I can make
52:38this work." Well, if I'm going to do it,
52:39I'll do three people at once. And it was
52:41a really good experience. Everyone
52:42killed it. And when that happened, I
52:44thought, dude, this is fun. We could do
52:46this. It grows the business. Like, you
52:48got to have something to do when the
52:49business really works. Like, this is the
52:50next thing. It's been really fun to
52:52grow. And it does.
52:53>> And you create a community. And, you
52:55know, next thing you know, you got hedge
52:57funds. And
52:58>> before I did this, this was not a thing.
53:01Like, we're literally seeing people
53:02spring up everywhere with business all
53:04across the United States. I heard the
53:06other day someone was going to start
53:07coaching this
53:09And I'm I'm like, whoa, this is a thing.
53:11Like, no one's done this before us like
53:13this. So, that's kind of
53:15>> So, there's no such thing as a
53:17distressed property. Uh,
53:19>> no one has really taken the curative the
53:21curative title like practice, so to
53:25speak, out of a title company or
53:26lawyer's office and put it in a made it
53:28a real business. It the heart of this is
53:30curative title. We're curing title
53:31defects, whether it's ownership or
53:33judgments or leans or whatever. We're
53:35curing title defects as a business, not
53:38as like a lawyer for a fee.
53:40>> Would it would it behoove me to be
53:42friends with title companies because
53:43they they can see encumber encumbrance
53:46on titles fast, can't they?
53:48>> The people that you need to treat as
53:50good as your family are title companies
53:52and lawyers. I don't have my phone on
53:54me, but I probably have 50 to 80 lawyers
53:57on my phone. I take care of those
53:59people. I answer their calls. I give
54:00them what they need. We pay invoices
54:02within 48 hours.
54:04And in exchange, probably 50% of those
54:07lawyers will answer my call on the
54:08nights or the weekends and do what we
54:09need because we are incredible clients
54:11to them. And the title company's the
54:13same. So a part that a lot of people
54:15don't understand is you're dealing with
54:16your escrow officer a lot. That's who
54:17usually closes your deal. The person
54:19makes the decision about the title
54:21commitment and actually underwriting is
54:23an underwriter. Most people don't deal
54:25with them. But if you build a good
54:27relationship with your escro officers,
54:29they know you're honest and smart and
54:30hardworking and will really go the
54:32distance to help them understand that
54:33their risk is lower. You can get things
54:35insured easier that other people can't
54:38and you can get a connection with your
54:39underwriter. But you have to work really
54:41hard and you have to work, you have to
54:42maintain that well. All you do is screw
54:44them or lie to them once and it's over.
54:46Like there are times now with title
54:48companies that we work with that we've
54:49been with them for years. I go in and
54:51explain their underwriter says, "Here's
54:52the deal. You got to do this." I say,
54:53"Well, we're not going to go to court.
54:55We're going to do an affidavit, but
54:56we're going to get these people to say
54:58this and do this because it's true. And
55:01that removes their standing for making a
55:03claim. If we file that in the land
55:05records, we shouldn't need a lawsuit
55:06because there's no claim outstanding.
55:08Underwriter, will you accept that? I
55:10hadn't thought about it that way. Well,
55:11I don't know, but no one is standing to
55:13make a claim.
55:15Okay, we'll ensure that. But if you
55:17don't have you don't haven't learned how
55:19to fix those problems like the framework
55:22that we train on and you don't have the
55:24relationship with the title company that
55:25ain't happening.
55:27So
55:27>> So how does someone get 10 years
55:29experience in two days?
55:31>> Two days you can't you can get my
55:33outline. If you've got any amount of
55:35experience in real now I'll tell you
55:36this. If they've never touched real
55:38estate before and they go get all this
55:39training you're going to go have to have
55:40some experiences. Like that's going to
55:42have to happen. There's no way that you
55:44can just do that. But if someone's been
55:46house flipping, wholesaling, anything in
55:48the real estate business, what we give
55:50you should connect your dots. Now, what
55:52about realtors that can't sell houses?
55:54Cuz there's a bunch of those.
55:55>> Well, if they're no good at their job,
55:56they might not be good at this.
55:59But
56:02oh crap, I was going to explain
56:03something.
56:05Something I explain to folks that are
56:07coming towards this and they're
56:08intimidated when I talk about some of
56:10the complicated things. Those are things
56:11I've learned over 10 years. But the
56:13first three years, I didn't do those
56:15things that are that complicated. I
56:16would find a nice property with an owner
56:18who wanted to sell with one judgment.
56:20That's lowhanging fruit. 50% of our
56:22business is low hanging fruit. The ones
56:23I'm telling you about are the crazy
56:24ones. The stuff that you can do 5 10
56:26years in. But when we coach and train at
56:29our events, we're training on the
56:30lowhanging fruit so that people can get
56:32in and can start making some money and
56:34get some base hits and get going. As you
56:37start doing that, building the income
56:38and growing, you start to have these
56:40other experiences along the way. And
56:41that's up to you to decide how far
56:43you're going to develop if you're going
56:44to develop what we've done. I know
56:46people that have lifestyle businesses,
56:47they make half a million, six, 700 grand
56:48a year and they're working six to nine
56:50months out of the year and that's all
56:51they do. They want four months off in
56:53the summer and two in the holidays.
56:54That's what they do.
56:56>> They're never going to build what we've
56:58built. And that's okay. They don't want
56:59that. They want a lifestyle business.
57:02And I pestered the hell out of him to
57:03come to our event because he was like,
57:04"I'm supposed to be on vacation that
57:05month." So, if if you had the ideal
57:07person come to your event, is it is it
57:10flippers and real estate people or is
57:12it, you know, anyone with, you know,
57:14good credit and a little bit of dough?
57:15Like, who's the ideal uh attendee?
57:18>> I tell them you don't need credit
57:19because when I started, I didn't have
57:20that. And I don't think you need a lot
57:22of dough. If you structure your offers,
57:23they're low offers to the right
57:25properties subject to all those debts.
57:27You don't need a ton of cash either.
57:28Obviously, it helps. And if you get that
57:30$10,000 deal, you better call Brad or
57:32Logan. But you don't have to have both
57:34of those. Realtors, house flippers,
57:37wholesalers, they all have a quicker
57:38path to success
57:40>> because they're familiar with the whole
57:41industry.
57:42>> But at the end of the day, like you're
57:43looking stuff up in the tax records,
57:44you're reading a deed. You may not have
57:46actually read a deed before, Brad, but
57:49it says who bought it, who sold it, what
57:51they paid, what what did they give you?
57:53This real estate. The address is right
57:54there. No, there's got to be a million
57:56of them.
57:56>> It's not rocket. There might be more
57:58than that.
57:58>> Can you search leans? And it spits out
58:01all leans. So everyone you're looking at
58:03a lean. The question is is it juicy
58:05enough?
58:06>> So every if you we don't search it that
58:08way. We search it for the property. Find
58:10one that's either delinquent, abandoned,
58:13or has. Sometimes you can cross
58:16reference the leans. But right off the
58:17bat, if you're looking for delinquency
58:18or abandonment, then you go backwards
58:20and see what kind of judgments, what
58:22kind of leans, what kind of ownership
58:23problems it has. That's usually the
58:25first litmus test. Then we go backwards.
58:26We don't look for the leans and then go
58:28forwards usually. So, if you were
58:30sitting next to me and and and you told
58:32me, "Brad, I'm not leaving your side
58:33until you have a deal." How long would
58:35me would me and you be hanging out?
58:37Likely?
58:38>> You and me could get a deal in a week.
58:40You know how to work the phones. I know
58:41that. And I know what I'm doing. That's
58:44how we train people in our office at
58:45Side by Side. Our coaching program is
58:47the same. Now, we can't give someone
58:49like, if you're going to work eight
58:50hours a day for a week, that's that's 40
58:52hours. That's a lot. But you and I would
58:55have to deal a week for sure. a week,
58:58maybe faster, because I would like want
59:00to jump in and help and get so far we'd
59:02be doing it. You'd be like, "Hold on,
59:03Logan."
59:04>> Yeah. I was just like, man, there's
59:06people out there, they're busting their
59:07asses. They got a little money in the
59:09bank. They got decent credit, but
59:11they've got no clue how to do any of
59:13this or even flip houses for that
59:15matter. I was doing this for my RV. I
59:17was living in an RV in the oil peel oil
59:19field tracking down these properties.
59:21And I was working 60, 70 hours a week.
59:22If I can do it on the nights and
59:23weekends, I don't know what the excuses.
59:26>> And would you say was the first one? Cuz
59:28like I'm picturing you on an oil well,
59:30you know, saving money or fishing boat.
59:32Like there's lots of people that do
59:34that, especially on oil wells cuz you
59:36ain't got no time to spend it anyway. So
59:38you're automatically a saver. And then
59:41you said, "I'm sitting in the man camp."
59:42Are you watching Land Man, by the way?
59:44>> Yeah, it's awesome.
59:45>> Greatest show ever.
59:46>> You like it?
59:46love it. Talking about
59:48>> Do you know we want to move to Odessa?
59:51>> Yeah. That looks like fun, doesn't it?
59:53Do you know that the Diddy
59:54documentaryy's gotten more views than
59:55Land Man now?
59:57>> No
59:57>> Yes. Saw it this morning. But uh but uh
1:00:02what was I saying?
1:00:03>> Land Man.
1:00:05>> Oh. Well, I'm picturing you out there
1:00:07doing the Land Man thing and you know
1:00:09that makes sense. But then like how did
1:00:12all of a sudden some dude that was
1:00:15popping pills and saving his money?
1:00:17>> I wasn't popping pills anymore. Oh,
1:00:20>> that was before the oil field.
1:00:22>> Well, eventually though, like you ain't
1:00:24doing nothing. You're on an oil field
1:00:25saving your money and just busting your
1:00:27ass all day and you go from that to
1:00:30>> boom, now all of a sudden I found a
1:00:32winner. Now, what was the I forgot how
1:00:34did you start doing it?
1:00:36>> I didn't want to just do that forever.
1:00:38It's a lot of work. You're out in the
1:00:39middle of nowhere and you're making good
1:00:40money, but like a lot of us think that
1:00:41there's more. We can do better than
1:00:43that. So, that was like the deceive.
1:00:45>> Yeah. But you didn't know you were Yeah.
1:00:47you wanted out of that Like
1:00:49that's not rocket science. But like you
1:00:51you said you were buying $5,000 lots.
1:00:53Like
1:00:54>> were you just driving by going, "Hey,
1:00:55maybe that's for sale. Let me buy a
1:00:57empty lot." And what was your plan on
1:00:59doing it?
1:01:00>> I didn't have a plan, man. What I was
1:01:02worried because I'd blown all that
1:01:03inheritance money. I didn't want to lose
1:01:04money. So I'm thinking, how can I invest
1:01:06in real estate where I can't lose money?
1:01:08This wasn't about the upside. This was
1:01:09about the downside.
1:01:10>> You figured dirt was the way to go.
1:01:12Well, it's a a vacant lot in a downtown
1:01:15big city in Texas worth $5,000. It's got
1:01:18roads, curbs, utilities, an electric
1:01:20pole. How can that be worth less than
1:01:22$5,000 ever? So, I thought if I buy it
1:01:24for five grand, I'm not losing money for
1:01:27five grand.
1:01:28basically everyone looking back. Oh my
1:01:30god, I picked up a couple dozen of them
1:01:32at that time. But if I know now or know
1:01:35then what I knew now, oh my gosh,
1:01:38>> I would have borrowed every dollar and
1:01:40just would have just covered the whole
1:01:42place.
1:01:43>> Would you own would you have owned San
1:01:45Antonio?
1:01:46>> All the east side
1:01:49>> here in Vegas because I don't want to
1:01:51have to fly San Antonio. Like
1:01:53yeah, could I do it here in Vegas?
1:01:55>> You could. So, I haven't looked at
1:01:56y'all's market, but folks ask like, "How
1:01:58do I find a market that's like that that
1:02:00makes sense?" So, I tell them to go to
1:02:02Zillow, Redf Fin, or whatever, one of
1:02:03those, and pull up sold properties and
1:02:06listed properties. Look for properties
1:02:08with big deltas. So, like, if you look
1:02:10in my neighborhood, the solds and the
1:02:13lists are going to be very close. But if
1:02:15you find a neighborhood like on the east
1:02:16side of some cities, the solds, I'm
1:02:20sorry, the lists and the solds, you're
1:02:21going to see in some of those these big
1:02:22deltas. So, like someone will sell a
1:02:23real crummy house for 150 grand, but
1:02:25you'll see a fancy house sold for 350
1:02:27grand. You don't see that in my
1:02:28neighborhood. There's not crummy and
1:02:30nice houses sold. They're all nice. So,
1:02:32when you find the neighborhood where you
1:02:33see both of those being sold, that means
1:02:34a transitioning neighborhood, and you
1:02:36usually have a lot of problems there.
1:02:37So, if I were to open up Red Fin and
1:02:39look at the neighborhoods that have big
1:02:41deltas from the lowest to the highest
1:02:43price points in the same neighborhood,
1:02:45right there. I'd go look right there. I
1:02:47guarantee you there's ownership problems
1:02:48and title problems there.
1:02:51How come? I mean, dude, I gotta
1:02:54get on this quick.
1:02:56>> Does everyone in your office do it on
1:02:58the side like the like the lady?
1:03:01>> I hope they're not supposed to cuz they
1:03:02all signed agreements to not
1:03:05>> so they're not supposed to.
1:03:06>> They're not supposed to
1:03:07>> cuz they're on your team doing it.
1:03:08>> Yeah.
1:03:09>> That would be like curbing cars,
1:03:11>> right?
1:03:12>> That's what people do at car
1:03:12dealerships. Like salesmen will be like,
1:03:14"Hey, uh, you know, if don't trade your
1:03:16car in, you know, and and I'll buy it
1:03:18afterwards." Yeah. that's less what they
1:03:21do in the car business. Or on the
1:03:23opposite side, like your managers, if
1:03:25you own the car dealership, they will,
1:03:28you know, buy it off the side lot type
1:03:30of thing and scr screw you. So that'd be
1:03:32the equivalent of that,
1:03:35>> you know, but but like why would you
1:03:37care if you're if you're willing to
1:03:38teach them? You would prefer they quit
1:03:41>> and then go learn.
1:03:42>> I mean, so we've done a really good job
1:03:44at hiring. Early on, I didn't know what
1:03:46that looked like. But when we hire the
1:03:48right people and train the right people
1:03:49and take care of them, they don't want
1:03:51to go do that because that's like a
1:03:52trust breach thing. And if
1:03:54>> because that's what the company does.
1:03:55>> If there's somebody in our office that
1:03:57we hired that wants to go do that, we
1:03:59up on hiring. That's our fault.
1:04:00That's not their fault.
1:04:02>> Yeah. But you would think like everybody
1:04:03every time I have a camera guy, I lose
1:04:05them after a while because I inspire him
1:04:07to go get rich. So like I have to go
1:04:09through camera guys.
1:04:10>> Now there's a difference. If I was
1:04:11working at your office, not if I not if
1:04:13I thought it was an ethic thing, but I'd
1:04:15be like, "Fuck, dude. How do I find some
1:04:19of these?"
1:04:19>> But you're entrepreneurial. I'm not
1:04:21looking for people that are
1:04:22entrepreneurial. I'm looking for people
1:04:23that specifically fit a metric that is
1:04:27not that
1:04:28>> you want them to.
1:04:29>> Yeah. They're personality tests that you
1:04:30can take and it it helps you figure that
1:04:32out.
1:04:33>> That's not perfect, but yeah.
1:04:34>> And you've been doing it 10 years. Not
1:04:36one person's quit and went out and
1:04:37started buying their own. They're
1:04:39probably a couple, but at the end of the
1:04:40day, the what we've built, they're going
1:04:42to most times they're going to do better
1:04:43with us than without us. And if they
1:04:46choose to leave, we've trained people
1:04:48well, but I don't know. No one has left
1:04:50our office and g competed really. I
1:04:52don't know why.
1:04:53>> What do you wish you knew when when you
1:04:54started that you didn't?
1:05:00>> Move faster. Move up the price point
1:05:02faster. Hire people faster. This works.
1:05:04It's not as risky as you think. Don't
1:05:06ease into it. Hit the gas. I should have
1:05:08done that.
1:05:09You don't know. I know it now, which is
1:05:11why we do it now.
1:05:13You think it's the way he talks too that
1:05:15makes people like deal with him better?
1:05:18>> I think it's just when you around him,
1:05:21you can just tell
1:05:24him.
1:05:27It's just
1:05:30>> Yeah. Well, I'm sold.
1:05:33I'm ready to sign up. The only thing is
1:05:35I ain't got time. And this sounds like
1:05:36it might take a little time out your out
1:05:38your pocket.
1:05:39>> That's the problem. You're making money.
1:05:40You got something going. Like that's not
1:05:42for you. But the people it's for are the
1:05:44people that are willing to work hard.
1:05:45They know that there's more out there
1:05:47and they just haven't found their thing.
1:05:49If that's if that's you and you're
1:05:51hardworking, dude, get over here as
1:05:52quick as you can because I got success
1:05:54stories that you can't deny.
1:05:55>> Well, I know there's a lot of
1:05:56wholesalers that like they're hustling
1:05:59and they're working and they're making
1:06:00decent money, but not that kind of
1:06:02>> not like that. There are very few that
1:06:04are doing that. There's some of them
1:06:05like the top 10% are doing really good.
1:06:08Like they're maybe top 5%. There's some
1:06:10experts out there. They're good.
1:06:11>> So where everybody where do people buy
1:06:13tickets?
1:06:15>> I got a link for them. Then go to Logan
1:06:17Fulmer on Instagram, Facebook, or Logan
1:06:19Fulmer.com.
1:06:21Everything will be there for the next
1:06:22couple months.
1:06:23>> L O GF
1:06:25lme. Folks, if you guys want a kickass
1:06:282026, a brand new year, you want to
1:06:31learn a skill that not a lot of people
1:06:33know and and getting in the gold rush,
1:06:37then you be in Scottsdale January 31st,
1:06:41right, with Logan Fulmer. And all you
1:06:43guys do to get a ticket is go to loan
1:06:46fulmer.com.
1:06:48>> Tickets are there. And it's called DPAM.
1:06:51>> You have a name for summit.
1:06:52>> DPA Summit.
1:06:53>> DPA Summit, folks. You ain't the first
1:06:55one. And I guarantee you won't be the
1:06:57last one. So I'd say get on her and I'll
1:07:00be there with notepad.
1:07:02That's right. Till next time, kids.
1:07:04Appreciate you coming in. Till next
1:07:06time, keep it real.

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