Hi, I'm Winston.
And I'm Nick.
And welcome to the Real Estate Template.
What's up today?
I've got some questions, guys.
We talked about the pig farm, possibly.
And you was worried about the environment.
Yeah, I was worried about the environment.
Also, the overall difficulty level.
Go back and look at that video, because I
am not worried about the environment for a pig farm.
Right.
The overall difficulty of a pig farm,
there's a lot to do on it.
And I don't necessarily plan on staying in Andy's land forever.
So if I was to leave, I would just
be strapping him down with.
No, you'd have to take your pigs with you.
That is if I do find a place to do that.
Life, I might be renting an apartment at some point.
So if that's the case, then I wouldn't
want to strap Andy down with while he's
got a full-time job and a family and a pig farm.
There's just a lot more to that.
I didn't want to have that possibly happen,
where I strapped him down with that.
I was thinking of a cleaner way of doing things.
Takes up a lot less space.
A cleaner way of doing things.
That sounds so millennial to me.
You're not millennial, though.
I'm on the cusp of it.
It's like millennial and Gen Z. I'm the exact year
that they debate on.
1996.
I've gone from the era where we still burn the tires when they
come off the car.
You didn't throw them in the dump, you just burned them.
Yeah, you can't do that.
That was a great way to start a fire.
You could start a fire and go with a tire.
People still do, especially on our own land.
I think we've done it once just to try.
It's taken so long.
You can't do that.
I don't think we did it even once.
That's the right answer.
So what are we looking at?
My idea is hydroponic tower farming.
So I could take it to farmers markets.
There's a lot of farmers markets,
especially as a proof of concept here with one tower.
So this is a real estate investing podcast.
Absolutely.
Is this going to eventually link back to real estate investing?
Yeah, this is a
So don't shut it off when Nick talks about hydroponics.
Yeah.
Don't shut it off.
Just let's hear what he says, and we will debate this issue.
You're right, though, because my why
is eventually getting into investing in real estate
with rental properties or building a house, anything
like that.
But I need some supplemental income
to accrue what I need as a down payment
to be able to make these types of moves.
So my method of doing so on top of just working
and whatever we've been able to do and my clients also
having another thing in order to take it over the edge
so that I could actually accumulate an extra $20,000
a year.
Do you have a client right now that's doing this?
That you're working with?
Yeah.
So I've got two filmography jobs.
And then I also pick up other jobs for businesses just doing
instructional videos.
I'm just validating.
You're not speaking out your butthole.
You're speaking that there's some stuff back
in what you're talking about.
Absolutely.
And then so this is something that
has to fit certain parameters of my time, my own knowledge,
my capabilities, the space, and then how much money it can make
and hopefully be scalable so that I could get to $20,000
a year extra just selling at farmers markets
kind of every weekend or every other weekend,
something like that.
So this episode may really interest you out there
that are green earthers.
Yeah.
Is that a term?
Green earthers.
Sure.
I like it.
I used to love that movie Green Acres, a TV show
Green Acres growing up.
Oh, really?
Yeah, you know what I'm talking about.
I have no idea.
It was a good one.
It was a TV show.
It was a good little TV show.
Kind of corny in today's world, but it was good back then.
When it was back then.
OK.
We'll talk about that a little later.
Probably get overboard with that one.
Gotcha.
So a hydroponic tower kind of looks like this.
And that's PVC pipe at the top, right?
Yeah.
I've seen them on the internet and stuff like that.
Yeah.
So they've got these holes here.
And there's water in the bottom.
There's the water here.
Now, they grow broccoli or lettuce out of these, right?
And you can kind of get yield a lot out of the tower.
And this is only a couple feet, maybe like five feet or less,
depending on what you actually get.
So I think that this is a $800 piece of equipment.
For one?
For one.
For one tower?
For one tower, it costs $800.
I was going to add probably about $200 for any extra setup
that I would need for nutrients for the water,
because it's not just water.
It's actually a solution that helps
these particular plants grow.
So I have some control with the solution of water.
Whereas if I was just planting in the ground,
I don't really have control over how much nutrition's
in the ground, already in the ground.
And it's a lot harder to get a consistent yield.
And especially if it turns into a business
where I have x amount that I'm trying to produce
at a certain quality level, this mitigates a lot of my risk
on what my end up yield is going to be.
So for $1,000, this is $1,000.
That's the full on investment.
How much money per month can I make on one tower?
Certain lettuces can be four weeks
to yield $300 at a farmer's market.
How many times do I have to go to the farmer's market
before I pay for my $1,000 asset?
If you filled that up with lettuce, all the holes,
had lettuce coming out of it, four weeks later,
you would be able to yield $300 worth of sales.
What about the cost of the nutrients and stuff?
Right.
So for each grow, that $200 would
be spread over a couple of grows.
OK, so we got to take $100 off of that $300.
That makes $200 in profit or no?
Yeah.
I would say all expenses of the sort for each four weeks
is probably about $100.
So about $100 on expenses, OK.
So we made $200.
That $200, how many times?
We'd have to do five weeks.
And then we fully pay off our $1,000 investment
from the very beginning.
Then we're in profit from there on out on that particular asset.
But the $200 will continue to grow, the $200 profit
every four weeks.
Correct.
OK.
So what that will yield is $2,600 a year.
Yeah.
Per station.
Because there's 13 four-week periods in a year.
We discussed that earlier today on talking about interest rates.
Yes.
So 13 times $200 would be $2,600 a year.
$2,600.
Now that is not taking any labor or anything else
into consideration, correct?
That's your labor being free.
That's the water being free.
That's the gasoline to take it to market being free.
That's being at market and being able to get full price.
Because as it gets a little age on it once you pull it,
now we're looking at having to discount the price to sell it
at the farmer's market.
Yeah.
And the farmer's market, chances are,
every four weeks you're going to lose one day at the farmer's
market of your time selling.
OK.
So how many of these would you be wanting to do total?
So where it becomes scalable is, and if I
was to do it all by myself, it yielded $2,600.
So essentially, I'm not taking a profit
or keeping any of the money that it makes for a little while.
Because I have to scale and reinvest and reinvest.
It's a five-year plan by myself to eventually get
to about 100 of these.
Now to manage 100 of those, would it require an employee now?
There's a high possibility.
So if you hire an employee, OK, let's talk about,
what is your profit at that five-year period of time
with 100 of those?
2,600 times 100?
Yeah.
So $26,000 a year?
$26,000, no, it would be $260,000 a year.
There's some wiggle room for a $40,000 employee.
What would the facility look like that you've got to buy,
to house that, to do that?
How big of a facility are we talking?
For infrastructure on facility, these can be outside.
During certain months of the year, like maybe two months,
it might be very difficult to grow certain things.
What can grow at 18 degrees Fahrenheit?
Not very many things.
They kind of lay dormant.
They don't die, but they lay dormant.
So the 200 may drop in the wintertime
where you, especially in Tennessee,
because we have a couple months that are extremely,
not extremely cold, but cold enough
you're not going to grow a whole lot outside.
Exactly.
So if there was a warehouse and an indoor facility,
then we wouldn't have to worry about that.
But these can be outside.
But then you've got to heat that facility.
Yeah, there's a bunch of expenses when it comes out.
If it's not a greenhouse environment,
then you've got to light it and other stuff.
OK?
So yes, there's a crap ton of infrastructure on that end
if you were to go into a house.
Give us your input throughout the video.
You can comment on this three or four times
throughout the video and let us know, hey, at this point
I feel this way.
And then that may change a couple sentences later
and we'll talk about it again.
So it's kind of cool.
So that would turn into a full time job for you
and a full time job for somebody else.
So what I look at is I look at vehicles
got to be purchased to go to farmers market.
This has to be purchased.
That's got to be purchased.
And I'm not going to say that can't
turn into a good business.
How would that be any different than just being a farmer
and just planting it in the ground?
This, well, for the very beginning, I guess,
maybe it doesn't get all the way up to 100 or so.
Maybe it is just a way to make an extra $5,000, $10,000
a year.
So it's my knowledge level.
Using the dirt that has never been planted on before
is a difficult thing to just start up.
Well, because I haven't, the lack of knowledge that I have,
making sure that my solution has a certain amount of whatever
to yield me what I need here seems a lot easier than farming,
tilling.
I don't have a tiller.
So for the first five years, you're
going to be pretty much investing everything you make
plus some back into it, right?
Because obviously, you're going to take money out of your pocket
to do this.
That's $1,000 that you're only making $200 a year off of.
No, that's not per year.
That's per month.
Per four weeks.
Then you got another $1,000 per four weeks, another $1,000
per four weeks.
So you're throwing everything back into it to try and do it.
Maybe this month you buy one.
Maybe next month you buy two.
Maybe next month you buy three, and so on and so forth.
And you keep investing it.
And you're saying by the end of year number five
that you feel like you'll be able to make about $260,000
a year on sales.
By year five, all by myself, it would probably be more like,
yeah, I mean, if I worked really hard,
I guess I could get it to $100,000.
But $100,000 would be stretching it.
That's $100,000 in total investments on things.
So I have to make $100,000 in the next five years.
That gets back into the base.
So you're thinking five years from now,
you can be at $100,000, not $260,000.
Well, these assets alone would cost $100,000.
So somewhere in that five years, I had made $100,000
and reinvested it back into the asset.
So we're talking at the end of a five-year period of time,
where will you be if you took all your stuff,
sold everything, and stood naked in the street
with nothing but some money?
Like the cash or liquidating the asset?
Liquidate everything.
You're walking away with what?
There'd be $120,000 in that.
So about $120,000 worth of profit if you sold everything
and that was it?
Yeah.
Which I think, is there more to this?
What?
Is there more to this?
That's just my idea.
I don't have an issue with that.
I've farmed for at least 15 years of my life.
I've farmed.
Hated every aspect of it.
And as long as Kroger and Publix are out there,
I will never farm again.
There's no chance of it at all.
And that's me, not necessarily you.
But we used to plant 100 acres of watermelons
and we would farm them, we would hoe them,
and we would do beans, and we would do corn,
and we would do all this other crazy stuff.
And it was from daylight to dark,
you worked in those fields and you worked on that stuff.
And that was not the life I wanted.
I wasn't looking for that.
So when I left that life, I never went back.
So this is next way.
Y'all let us know what you think.
So here's my way.
I'm going to go out over that five-year period of time
and I'm going to buy three greenhouses, one red hotel.
Then I'm going to rinse and repeat, different concept.
Why is one better than the other?
I'm out of frame right now, I'm good, right?
Right.
Why is one better than the other?
I mean, I would get into that game
if I had 40, 90 grand to get into that game.
So Nick said he will get into that game
if he could get 40 or 90 grand to be able to get into that game.
How many people you think are watching this video
is thinking the same thing?
Probably a few.
Most of them, right?
Yeah.
I say most of them.
So what is the solution?
So to go out, I got a house and a contract right now, right?
For $170,000.
So if I got a house on the contract right now
for $170,000, that will rent for $1,800 a month.
Can you find a house right now for $170,000
that will rent for $1,800 a month?
Can anyone watching this video do the same thing?
They're there.
Are they easy to find?
Probably not, no.
No, you have looked and looked and looked.
They're hard to find.
There's not very many sub-$200,000 houses that are low.
But the more people you talk to, this $170,000 house I'm buying,
did I go out and find this house?
Yeah.
No, I did not.
Somebody that knew I buy houses called me.
So as you're out there talking to different people saying,
hey, I want to buy a house, I want to buy a house,
I want to buy a house, as you're out there trying to do that,
you are going to have people that have your number
and eventually they're going to call you
and they're going to reach out to you.
And you all can do the exact same thing.
So I got a $170,000 house I'm going to buy.
And let's say I want to finance it.
So the bank says you got to put 20% down.
What's 20% of that?
I don't know.
I have to get calculated out.
Looking at about $30,000.
Let's see.
$34,000.
So I got to come up with $34,000 to buy this deal.
Where do I get $34,000?
Well, that was kind of the plan a little bit for this.
I mean, things would get scaled to a certain extent.
Yeah, but we're five years out.
I don't have five years.
I'm 56 years old.
I'll be 61 in five years.
But I think I would have five.
Once I get about the $34,000 or something,
maybe the next investment is going straight into.
I do have to scale this for a little bit.
But like a year or two, three years later,
I have the $34,000 that can go into the house.
OK.
How hard is it to come up with $34,000?
I mean, some people will never do it.
Most people will never do it.
But how hard is it really?
I mean, it's not easy.
Why is it not easy?
Because it's just not.
I could go to work every day and get off work,
get in my truck and Uber the next four or five
hours of the night.
And I could very easily save up $34,000 a year doing that.
My weekends, Uber on days off, I sacrifice my time for money.
And then eventually, my money makes me money.
I could offer my grandfather 8% interest
if he'll let me borrow the $34,000.
So he lets me borrow the $34,000.
I do it.
I pay him his money.
I make the property where it'll cash flow.
And I think the property will cash flow with that.
If I was paying him 8% on that, you
could still make a cash flow.
And if it cash flowed, now I'm going to have to pay him
$3,000, now I might not be making a ton of money,
if any money, on my cash flow of the property.
But I am making 10% on appreciation.
I am not paying tax on a profit because I
do get to use the depreciation on that.
So that eats up my profit off of anything if I had it.
Plus, it then combines, too.
So it builds up for whenever my profits get better.
It's still there.
I don't lose what I don't use.
Then I get my principal reduction,
which on that note will probably be about close to $4,000
the first year that I would get.
I would make that $4,000 also.
Whose money is invested in it?
Grandpa's not mine.
Is grandpa happy?
He's getting 8% return on his investment.
He's happy with that because is he guaranteed debt at the bank?
Is he guaranteed debt in the market?
No.
There's a lot of people pulling money out of the market
right now because they're scared of debt in the market.
So they're going to sit on that money.
I have somebody that's a friend of mine that just yesterday,
they found out that interest rates are supposed to be
going down in the next couple of weeks.
So if interest rates are going to be going down,
then the CD market is going to go down also.
So if interest rates drop, the CD's are paying like 5%
right now.
CDs will drop down to 4% or 3%.
So he went and put his money into a CD, a six month CD,
seven month CD, whatever, for 5% so that he
could make that percentage off of that
because he's worried about it.
So if he was willing to tie that money up for months at 5%,
would that same person give you that same money for 8%?
Yeah.
Yes.
Can y'all do that exact same thing?
Absolutely, you can.
You can.
So we get that $34,000.
We get that house.
Now we're making more than $20,000 a year off of that house.
How much did we sacrifice?
If grandpa gave me all the money, I didn't sacrifice anything.
Not even any time, really.
If I have to go back now, now, if you
can agree to do that for three years
before you pay grandpa back, three years from now,
you go cash out refi.
Your rents have went up 3% to 5% every single year
for those three years.
Now you've got enough money to cash flow
to pay him off completely.
And you still have a little extra money.
And then go do it.
You do this on year number one.
You could do the same thing on year number two.
How much work is in this right now?
I'm going to tell you right now, this house is in great shape.
This house we're talking about for $170,000
needs nothing at all done to it at all.
So for me, I can do that deal.
And when that deal is done, that deal is done.
And I'm going to put a $500 a year maintenance fee on that
that I'm going to pay.
I'm going to include it in my numbers
when I run my numbers.
And in the end, I got nothing.
My money is making me money.
Grandpa's money is making me money.
I don't even have any money invested in this deal.
What's your thoughts?
My thoughts are?
And I'm not talking shit about what you got right here.
I'm just saying, if you're doing this to do this,
I think you can be so much further.
You can be done with the three greenhouses
in those five years, easy.
You can be done with those three greenhouses.
And let's say at the end of those five years,
let's not call this a red hotel.
Let's just call it a red quad, four unit building.
It ain't got to be a hotel.
It's just something else that's got a little bit more value,
a little bit bigger deal,
let you make a little bit more money.
It could be a duplex.
Yeah.
Yeah, so let's start there.
So we got four, it kills the Monopoly game experience
when I do this, but okay.
So we got four greenhouses
and then we got one red duplex.
Yeah, that's a good look at duplex.
We get so caught up in the minutia of getting this done
and how can we do it?
Your generation is extremely concerned about environment.
Our country seems like they're extremely concerned
about our environment.
You know who's not concerned about our environment?
The government.
The government is concerned about other countries.
The government really isn't either.
The government regulations on the environment
makes the government money.
That's what our government's saying.
You look at China and you look at other countries,
they don't give a rat's ass about the environment.
China put plans in place that they're gonna do this
and they're gonna reach these emissions,
but they're gonna reach these emissions in 20 years.
Not now.
They're gonna do as much as they wanna do right now
with the people that live in that country
have so much smoke and all they gotta wear a mask
just to breathe outside.
That's not a country that cares about their environment.
I mean, we are one of the cleanest countries around,
not the cleanest, but one of the cleanest,
and we're in great shape.
So I'm not saying don't worry about the environment.
What I'm saying is how do we get you to the point
that your money is making you money,
you no longer happen to work for a job?
You work because you want to.
You work because it's a passion.
And I'm struggling with everything right now
because I don't have to work anymore
and I don't know what to do with my time.
So all I really want to do is work.
Hell, it's so bad.
I thought about gonna get a job at Lowe's.
But then I thought, why would I go work at Lowe's
for 40 hours?
Go build a freaking house on your own
and just do the work yourself.
So I just need to do something a little bit different.
Yeah, my little brother and older brother
and I had a conversation about kind of like that.
What would you do if you had $10 million or something
and you make $17,500 a month and very consistent
like you don't need to do anything anymore?
Kind of like what you're talking about?
It's a big question.
I don't have an answer.
But I think my biggest obstacle on this is
even if grandfather loves me,
why does he think that I'm capable of buying this house,
using his money, being on top of making sure it's rented
and like I've never done it before,
why does he think I'm capable?
Why would he trust that?
Why would grandpa trust you?
Good answer, good question.
I think one thing is for sure,
any and all of our relatives want us all to be successful.
If grandpa has the extra money for that right there
and you show him a house and say,
I'm paying 170,000 for this house.
You take him, you show him the house,
he looks at the house and you say,
grandpa, until I pull your name off of it,
I'll put your name on the deed of this house.
So it's your house and his house, okay?
You got the loan, grandpa still got his name on that deed.
Or maybe you do a promissory note,
tying it to the deed for him,
whatever you gotta do as far as the bank is concerned for that.
Does he have any risk?
I mean, yes, putting the control or just the management
or the oversight, the eyeballs on me,
and I could fail.
Okay, so the question is,
is the house truly worth 170 or is it worth 140?
If it's worth 170 and you fail,
can grandpa still sell it for 170?
Yeah, I guess so.
He can still sell it for 170.
He can still get his money out.
Is it gonna be easy?
It might be a little bit more work.
But the question is,
what's your relationship with grandpa?
You know.
Or whoever.
What is it?
I mean, if it's a good relationship,
then he's gonna be there to help you too.
What if grandpa doesn't want you to help him?
He's gonna be there to help you too.
What if grandpa doesn't construction for a living?
He says, yeah, I'll help you.
I'll give you some advice
and I'll walk through this with you.
Let's do it.
Let's get you a house.
You know, what do the,
there are tons and tons of syndicators in our country, right?
So syndicators are people that go out
and they'll bring in a pool of investors
to buy an apartment complex, an office building,
maybe even just a house.
You know, they just bring,
maybe they bring five people in
and maybe they bring 500 people in to do a deal.
It's on both scenarios.
You know, most of the buildings,
the high rise buildings you see in your city,
they were bought by a large group of investors,
all pooled their money together.
They built the deal.
They went a couple of years with not making any money
and now they're making some money.
Then they do a cash out refi, they get paid off.
They're still in the deal and hanging on.
That's a syndication deal.
So how hard is it?
How hard do you think it would be for me to go out
and get investors to give me money?
Not very hard.
You have to prove a track record.
I have an extremely proven track record.
I could probably say on this video
that I'm looking for a million dollars
and I bet you I could pull that million dollars in
by next week.
I'm not looking for any money, by the way.
But if I was, there are people out there
that trust me enough that would easily give me money.
I've had people call me,
I have them call me all the time asking me,
you have anything I can invest with you on?
And I've just never had partners.
So I'm a little hesitant on it.
I struggle with it and that's just been me.
But I have a lot of friends that do syndications
and they have money.
We saw the lady that came in two weeks ago,
three weeks ago, maybe a month ago.
They came in and talked to me wanting to do some deals.
And she's wanting to invest with me.
And she has a proven track record of what she does.
And she is very proven.
She says she can come up with a couple million dollars
to invest a month.
A month?
A month.
So if I wanted to do investments with her,
she could come up with a couple million dollars a month
and we could do the deals.
So if that happens with me, that can happen with you.
What it takes is three green houses, one red duplex.
If you have three successful rental houses
and you got one red duplex over here successful,
people start taking recognition of you
just with those five properties or four properties,
five doors, four properties, just with those four doors.
They start taking recognition of you.
And you keep going.
And you just find one person.
There's a lot of business owners out there
that would love to have somebody,
hey, I don't want to do this freaking work.
I wanna go to work.
I wanna make my money.
I wanna go home and I don't want about anything.
And you tell them, all I need you to do is be the money guy.
You can have half of everything we do
and let's just do some deals.
How many people out there do that?
There's a lot that do that.
And there's a lot of partnerships that fail,
but there's also a lot of partnerships
that are very successful.
And all that depends on who you are and what you're about,
who the partner you pick is and what they're about.
If they're controlling and you're out there,
you're supposed to be the one doing all the work.
They're gonna control you enough, you're not gonna like it.
You're gonna hate that.
So they need to give you the freedom.
You need to set those.
These are, I'm doing this in six weeks,
this is what's gonna happen.
And you need to hold to what you tell them you're gonna do
so that nobody has to hold you accountable
or anything like that.
I mean, there's a lot to be said
and just don't what you're supposed to do.
Comments?
Questions?
Comments?
Questions?
What you think about Nick's haircut?
You like it?
I just got it cut.
I've never had that long hair before.
You shaved it all off?
Couple days ago.
Looking good, looking good.
Yeah, I don't like it.
I love that shirt.
That's an incredible looking shirt.
I don't know where I got this, but.
Yeah, that's alright.
That's alright.
Kinda just sporting it.
Found it at the bottom of my 30-year-old laundry hamper.
If you live in the Nashville area,
I live in Middlesville, Tennessee.
My office is in Middlesville, Tennessee.
And I'm wanting to see if we have an interest
for people out there in this local area
that would want to do a bi-weekly or monthly,
let's say monthly, let's say a monthly meetup.
How many people?
If you are interested in doing a monthly meetup,
what do you need to write to that?
Just in the comments on this video?
Definitely, yeah.
Say I would go to the meetup in the comments section
and we'll count how many kind of people.
Yeah, I mean, if we can get enough people
who want to do that, I will sponsor that at my office
every month.
And that way we're not paying for a building or anything.
It's easy to get to, it's easy to do it.
But we'll come in and we'll do a meetup
and we'll talk about real estate stuff
and we'll talk about investing
and we'll talk about building
and we'll talk about land development
and whatever else anybody else wants to talk about.
We can bring in different people to speak
and talk about different issues.
And I think that that could be a good thing,
but that might not be a bad idea.
And I mean, like you're saying,
you're trying to get 34,000 from your grandfather
or somebody that trusts you or whatever
and then having a monthly meetup
of local people around here,
I feel like I would probably be able to meet somebody
that does want to invest.
So if you're an investor out there
and you would be interested in something like this,
let us know that also.
And we can publicly run numbers on deals and stuff
and say, hey, Jim wants to partner with Nick on this job.
Is this a good partnership for him?
And we run numbers and we run those numbers so much
that Jim knows that the deal is a great deal
and that he has basically zero potential to lose his money.
And that is what the deal is I'm looking for.
I'm looking for a deal
that there's no chance of me losing money.
And I look at this house right here
as there's no chance I can move the money with it.
I mean, it's a good buy, it's a good deal,
it's in a great area, it's on a great road,
a lot of traffic, it will rent.
I own houses next to it that I rent for $2,000 a month,
same size houses.
So I know for a fact I'll get a minimum of 1800 a month.
And then it's always just gonna kind of increase
with the appreciation.
8% interest, so we talked about giving grandpa
8% interest, right?
So let's say we give grandpa 8% interest.
At 8% interest, we already know
that $170,000 property will probably yield
a couple of hundred dollars a month positive cash flow
if it's in great shape.
So we know at 8% we can pay 8%.
And now if interest rates drop 1% or half a percent
or whatever, you know it's gonna be a little bit better.
Let's say interest rates drop to 5%,
cash out, refi, pay off grandpa, now it's all done.
You own the whole house and you know it's the same.
Don't make life more difficult than what life is.
Simplify it, go down to the basic steps
of how you wanna do things and how you think things should roll
and do it through the basic steps.
Rinse and repeat, rinse, repeat, rinse, repeat.
We do not have to reinvent the wheel.
Now if hydroponics is something that Nick wants to do
because Nick has a passion for something like that,
then that's fine.
But if Nick is looking for this to build his portfolio,
I would skip that, I would go straight to this.
But if Nick wants to do that, then do that
and find a way to do both of them at the same time
and maybe they can actually offset
and help each other at the same time too.
Maybe the houses help this part.
Or this is just a hobby that ends up actually
at a slight profit.
I mean, but there is no right or wrong,
well there's a lot of right answers.
There's not a lot of wrong answers out there.
I mean, get your goal set, get what you wanna do,
understand it and just do it.
The worst thing you can ever do is sit on your behind
and a year later you still don't have
a single piece of property.
That's not good.
I can't tell you how many people I've talked to
for more than 10 to 20 years
that have told me for 20 years
they wanna get in real estate.
But for 20 years they have still never bought
even one property outside of their personal residence.
Yeah, that's a long time.
So how do you fix that?
You can't fix it because they are not willing to sacrifice.
The juice is not worth the squeeze.
The time they gotta put into it
for the money they get out of it,
they do not feel like it's worth it.
Why else would somebody not do it?
There is a lot of work to it
and they might not have the complete knowledge
or the right property management
and there's a lot of stress to it.
So you do $170,000 house,
rent it out for $1,800 a month
and let's say you're making 8% year one.
What you're making on year number five?
Still making 8%?
On year number five, we should be able to,
hopefully we could cash out refi
and that would go up a lot.
So you're making 8% compounded.
Well, you're making the 8%.
So let's say...
So you're still making 8%.
No, no, no, no.
So you're making the 8% but let's...
I ain't gonna raise anything.
So let's say you're making on $170,000 house,
8% will probably be about $1,700 a month.
That's what our typical calculations have done.
If we're making 1%,
then it'll cover the 8% barely,
maybe $100 extra a month or so, right?
So if we were only getting 1,700,
is 8%, what are we getting on year number two?
Rent's lag construction, right?
Rent's lag appreciation.
So rent's lag appreciation.
So we go back and we say, okay, we got 1,700
and then the next year we're gonna increase that by 5%.
That's $85.
So now we're at $1,785.
Then we take that $1,785
times another 5%.
That's gonna put us at $1,959.
Then we take that $1,959.
This is the end of year number one,
we'll move on to year number two of on it, year number three.
I'm sorry.
That's gonna be 2115.
So just in that amount of time,
we've increased our cash flow from 1,700 to 2,100.
That's what, 300 bucks?
400 bucks.
So at least 300 bucks.
So let's just say, 317, 18, 19, 20, 21.
Yeah.
300 bucks, 400 bucks.
17, 18, 19, 20, 20, 400 bucks.
So we've increased it 400 bucks.
So now, if we look at that, that's 400 times 12.
We've increased our cash flow $4,800 that year.
So if we said we were making 8% off of that,
I would guarantee that number's gonna be closer to 13%
at that particular point in time.
Because once you equate that 5% compounding on the rent,
that compounds.
Your normal, the 8% is still off of your investment.
So the 8% right here is return on investment.
From here on out, as we get appreciation and everything,
now we're getting return on equity, right?
Right, because the asset itself is growing
and that is equity.
Now we can still look at it and run a number return
on what our investment was,
but our equity in that property, the time in that property,
it's not time on the market, it's time in the market, right?
It's not time that it takes to buy that property,
it's the time you stay into that property and the compounds.
At 8%, how long does it take to double your money?
That sounds like a good five year.
Nine years. Nine years.
So at 5%, oh, that was at 5%, right?
Was that at 5%?
It's like 7% was like a.
Hold on.
No, at 8%.
You double your money.
You double your, I don't know what's going on with my phone.
72 divided by eight is nine years, so every nine years.
So at 8%, you double your investment every nine years.
So the property value becomes double.
Now, are you gonna be able to achieve the same 8% or,
that number's gonna go up,
but are you gonna achieve the same thing?
You're gonna probably double your investment
or probably double your money or double the rents
every 12 years or so,
because they're gonna double at a little smaller rate.
Now you may, I mean, because we had a couple of years ago,
rents were going up 12%.
You had people going up 12 and 15% on their rents
to catch up.
So it should be the same as the 8%
if that's what the appreciation is,
but it may fluctuate a little bit.
But either way, it goes up year after year after year.
This is your money making you money.
Let us know what you think in the comments.
Let's go look at his form house.
Okay.
You look confused.
No, I'm not confused at all.
Like I really do get it.
So what's your impression about what we started with?
What do you mean?
Everything's the same.
You mindset change any?
Well, so like I was kind of hinting at,
maybe this is just a hobby.
But it doesn't mean you can't do it.
Right, right.
And I guess, I really just need to get good at finding
a entrance level deal and then trying to find somebody
that wants to partner with me on it
and is willing to let me cash out refi
and maybe five years, pay them back.
If that's how I end up paying them back.
I could probably just immediately through the cashflow,
immediately pay them back slowly but surely on the 30s.
How hard is it to get people to understand this?
For somebody that's never seen it before,
and people with 34K that want to invest
but have never even thought about real estate possibly,
it could be pretty difficult to explain.
I have a friend of mine
who has a real estate agent and she has at least
600,000 equity in her home.
And she makes good money, but she spends all of her money.
So you look at the future and what's gonna come
in the future when you don't make as good a money
as you're making right now, what happens?
What happens when people make a great paycheck
and then they retire?
Now they drop from maybe five to $10,000 a month
in income to $200 a month and that's all you're gonna get
the rest of your life.
Maybe a little bump here or there, but that's it.
They have to make an extreme lifestyle change
to survive in that market, right?
Yeah.
Is that what you really want?
No, not at all.
Because all of us that work for somebody else or work,
all of us are gonna eventually make a change and say,
you know what, I'm 60 years old, I'm 70 years old,
I can't work like I used to, I just don't want to.
And you figure, I'll live on a lot less
than what I used to live on.
That's all I'm gonna do.
And that is fine.
But this young lady that I'm talking about
that has a 600,000 equity in her house,
I told her, I said, pull the equity out
to build another house.
I will build the house for you for free.
Just pull it out.
If you want to partner with me on a deal,
we will partner on another piece of land that I own
and we will build the deal and I will do it all.
You put your money into it.
When we finish the house, we'll do a cash out refi,
pay you off 100% of your money.
You have nothing left in that deal.
No money at all, but you're still making money.
But we've talked about that forever.
And it's never happened.
Yeah.
Really?
It hasn't happened because she's still very comfortable
in her environment.
She has not hit a point in her environment yet that says,
oh hell, what am I gonna do about this?
And typically when you get that oh hell moment
and you're trying to figure it out, it's too late.
It's too late.
And it's too late why?
It's too late, why, because time in this housing market
is so much more valuable than the time on this housing market.
You gotta get in it and you gotta let that money compound.
We've talked about it long enough,
her and I have talked about this long enough
that she would have already doubled
that $170,000 worth of money.
But yes, she still has not done it.
How many of you out there own that same fence?
You wanna do it, you watch these videos.
I used to go to classes with people for years.
And every single year, or every single month,
we would end up at a class.
And when I'm talking about a class,
we would fly to Texas, we would fly to Seattle,
we would fly to Arizona, we would fly somewhere else,
a different state.
We would spend $400 a night in a class.
We would spend $400 a night in hotels,
because they all was at nice hotels.
We would pay for the event,
and we would pay for everything else, food.
I went and had two glasses of wine last night with my wife.
And those two glasses of wine with my wife
was over $100 for two glasses of wine.
Dang, $50 each of glasses of wine.
For a glass of wine, a glass of wine.
So, that's a great mindset.
And I can go pay $100 for a glass of wine,
because my rent pays for that glass of wine,
I'm not even paying for it.
I make my rental income, it pays for it.
I make no money outside of rental income.
But my assets are making me money.
So if things are that expensive and going up that much,
how do we fix that?
We fix that by realizing,
maybe I don't need that $100 glass of wine right now.
Or two glasses of wine.
Maybe what I need to do right now is invest some money,
and make that money make me money.
And then I'm gonna enjoy that glass of wine.
Maybe I don't need that brand new Corvette right now.
Maybe I need to live in a world
where I drive my old beat up pickup truck
for a little bit longer,
and let my money pay for that new Corvette.
Robert Kiyosaki's book, Rich Dad, Poor Dad,
great book to read, it'll explain that concept in it
on how you take your assets and let your assets pay
for your pleasures in life.
So I need to find somebody that's willing to give me
about 34 to $50,000 of down payment money
at a 8% rate of payback.
So I have never invested with people before,
so it's kind of hard for me to talk about this.
But I have a lot of friends that have invested with people.
A lot of friends.
Most of my friends have invested with other people.
And most of the people we deal with in real estate
have invested with other people.
I'm just saying I haven't.
But I can tell you that without exception,
not one person that I talk to about investing
in real estate ever says they're worried
about finding the money.
Everyone says if you have the deal,
the money will come to you.
It is easy to find the money once you have a good deal.
And if you go to any real estate seminars,
if you go to any real estate meetup groups,
if you go to your RIA that's in your state or your town,
your city, you go to those RIAs,
you will always have people that will tell you
the money is not your problem.
You are hung up on this money thing.
I am personally hung up on the money thing.
I don't have enough money to do this.
And we just talked, I just told you,
I can go grab money anytime I wanna grab money from people.
But I've been hesitant to do that.
I don't want to do that personally.
And that's why I haven't done it.
I don't have to do it at the moment.
So I just haven't done it.
But if you have to do it, then you have to do it
and you figure that out.
You find the deal, the money will come.
It will come.
If you go out and you look at wholesale sites on Facebook,
you ever look at wholesale sites, lease option sites?
So you can go on Facebook and they have pages
that are dedicated to people that do wholesale deals.
They have pages that are available
to people that do lease options.
And as you're looking through that,
there are always comments on different people's posts.
Do you need money?
I'm looking for a deal to partner with somebody.
I'm not looking for a deal to do on my own.
There are a lot of people out there.
And you can find those on different Facebook groups.
You can find people that are looking for money.
Looking for money or looking for a project?
Well, you'll find people that are looking for money
and you'll find people that are looking
for a project to invest in.
Yeah, and I need somebody that wants to partner on that.
Hey, if y'all would, write something in the comments
on that if you've seen some people out there
that have money and they're really just looking
for somebody that's got a good deal that they can invest in.
They're there.
How would I get that deal in a sense?
In a sense, it's like, just find it on Zillow.
Find it on the...
So let me ask you a question.
You and I have been doing this for a year
and nine months now, right?
Mm-hmm.
So how much time do you spend right now
looking for a deal a week?
Not really much.
So how are you gonna find a deal
if you don't spend any time looking for a deal?
I used to spend six hours a day.
It's just because I decided for now,
that's not what I'm trying to do right now.
I used to spend six hours a day looking for deals.
I was on Zillow all the time, I was on Redfin,
I was on every site out there looking at stuff.
I was looking at stuff on Facebook,
I was looking at articles from people
that they were writing.
I was looking for anything and everything
I could find to do that.
It's not a deal that's gonna come to you.
It's something you're gonna make happen.
Then you're gonna have to sacrifice time to make that happen.
Yeah, do I have to get it under a...
It's like me, I wanna learn Spanish.
I'm looking to plan a trip to Medellin, Columbia.
Nice.
And if I'm gonna go there, I wanna be able to speak
more Spanish than what I speak right now.
But yet, I have not invested any time
in learning more Spanish.
That's hard.
Is it because I can't learn Spanish?
No. No.
It's because I'm not willing to put in the time
to learn Spanish.
Same concept?
Right.
Kind of.
The thing is, I could search and search and search
and search and not find anything,
whereas you can study, study, study,
and you will find something.
Did y'all just hear Nick say he can search
and search and search and can't find...
I just had somebody give me this deal for free.
They called me up and said, hey, come to my house,
I wanna talk to you about this.
Right, but the thing is for the...
No, if you sit at home on your sofa,
you will never find it.
You have to go meet people.
How many of the Rio groups have you been to?
It's long shot.
It's not a long shot.
It is not a long shot.
Really?
No.
That's a hit.
But that's why people go to work
because they get paid for their time.
Whereas a lot of this is like...
It's easy.
No, no, no.
It's easy to go to work and stamp a clock
and get a check every week.
It's easy.
Yeah.
But then you get caught.
Why in the world did you quit working for AT&T?
Because it was annoying.
Yeah, it was annoying.
It was annoying.
Because it was annoying.
Okay, but you were sick of punching that clock, right?
Yeah.
You were sick of punching a clock for money.
Yeah.
So all these people that are out there
punching a clock for money,
and they might make a million dollars a year
and they might make $20,000 a year.
I don't know what they're making.
But most people get irritated
punching that clock trying to make money.
But they're still not willing to do what it takes
to have to quit punching that clock and do that.
Now you took your first step on that.
You started doing your videography stuff that you do.
You picked up more clients.
You're doing that.
The next step is to figure it out
whether you're gonna follow a path
of buying another business
and you manage your own business at that point,
which you got a job at that point.
Or are you gonna go with the real estate part,
which you somewhat got a job
because it's not all passive income.
There's some active stuff that's gotta go in with it also.
There's none of this stuff that's,
I'm not gonna say none of it's completely passive,
but most of it isn't.
If you're going with something that is 100% passive,
let's say you go buy a dollar general at a six cap.
Okay, you're not making a lot of money at a six cap.
But they're gonna sign a 20 year lease with you
where they take care of 100% everything.
That money comes to your mailbox every single month
and the only thing you gotta do
is deposit that check in the bank.
There are those deals.
But I think that's probably where
I could be in my life right now.
I could sell all my properties off
that I have a lot of active time in
and I could go buy something like dollar generals
and stores like that that would give me a 20 year yield.
20 years from now I'll probably be dead.
So, you know, it covered me the rest of my life.
And my kids will still inherit the properties.
But what they're inheriting is not what I want.
Yeah.
Just think outside the box, think outside the box.
Listen to these videos more than one time.
There's so much truth in all of this right here.
And it is not easy.
This ain't easy.
If it was easy, you would have already done it, right?
You and I have talked about several properties.
We haven't looked at properties.
We've talked to people.
It's not easy.
And I haven't not.
But that's why people quit, right?
Yeah.
That's why the competition is so small
because it's too hard, too much time,
too much this, too much that for other people.
This is not some video of somebody out there telling you
real estate, you're gonna be millionaire in five weeks,
three years, 12 months.
I'm not telling you.
I'm gonna tell you, you're gonna get out there,
you're gonna work your ass off to achieve what you achieved.
The harder you work, the faster you achieve it.
If you're not willing to work, don't jump in this game
because it is not a game for weak.
It's a game for somebody that's got no strength
to get out there and bust ass until you don't have to.
And make that money make you money.
Yeah.
I guess I'm also just kind of annoyed
at how many fruitless nights in a row
that I've spent trying to do something of the sort.
So it kind of got annoying.
And then, you know, I still have bills,
so I just had to come up with different ways to make money.
So how many times do you fail before you quit?
Oh, I mean.
On a proven, on something that's proven.
It's whether you quit or get pushed out
in the sense that it didn't work
and you have bill to pay and you have to do this now.
Then you just get, you missed your.
But how many people have come to our real estate seminars
that have young people that have 10 properties and stuff
and they have all those properties,
they had to do it somehow.
Yeah, everybody is.
You may have a hundred failures, so what?
All you need is one success.
Yeah.
The failures don't matter.
One success.
One freaking time.
One freaking time, that's it.
But if you don't go out there and beat them doors,
you're not gonna find it.
It's there.
And I'm telling all of y'all in this video, it's there.
Nobody's gonna come knock on your door
and say you won't buy my house
unless people know that you buy houses.
Once they know you buy houses,
do you have a problem with that?
Once they know you buy houses, do you have a chance?
Yeah.
The more people that know you buy houses,
do you have more of a chance?
Yeah.
The more you get involved with your community,
the more you're gonna get opportunity from your community.
The more you get involved with your city,
the more opportunity you're gonna get with your city.
Because they always have stuff that's coming up.
If they know they have an investor
that's looking to buy a piece of property,
then they're gonna throw it at you.
Because they just wanna sell a piece of property.
I have people call me all the time,
do you wanna sell this piece of property?
No.
Do you wanna sell this piece of property?
No.
I asked somebody this morning,
you wanna sell this piece of property?
No.
You know, they still calling me though.
And eventually I'm gonna wanna sell that property.
And you know who's gonna get that property
and wanna sell it?
Whoever calls me next.
Yeah.
Because I'm not writing down none of the numbers
of the people that are calling me on my telephone.
I'm usually irritated and just hang up.
But when I'm ready to sell it,
I have people ask me to buy my company,
can I buy your company?
No.
Can I buy your company?
No.
Can I buy your company?
No.
One day, I'm driving to work and I'm pissed off.
And I say, I'm selling this company.
And I made one phone call.
And the next week I had three men in my house
from a different state discussing buying that property,
that building for me.
No, not the building, but the business.
Yeah.
And then once somebody else heard
that they were looking at it,
they called me.
You wanna sell your company?
I said, well, I already got so and so
looking at the company.
Well, we want it.
I said, first person that's come up with the cash
gets the company.
And the second company that called me,
not the one that I called,
the company that called me was the one that bought it.
And it happened within like a two week period of time.
Now it took me three months to do all the sales
because it was a pretty hefty deal.
But that's how it works.
You healthy, you healthy, you healthy, right?
And you healthy until you're not healthy anymore.
But typically once you're unhealthy,
maybe it's something that you can't correct anymore.
But had you stayed healthy the whole time,
you would have never gotten sick.
So you wanna change it.
If there's one particular moment in your life
and it's too late to change it.
If you wanna get healthy on your finances,
now's the time to start.
And it's not gonna automatically be something
that's gonna happen in two months or six months.
But it might happen in six months.
It might happen in two months.
I told you when I did Rich Dad Education
that I bought a house every month for 36 months straight.
I would go to the class and I would come home
and I would buy a house every single month.
And then it was my determination
that I didn't wanna show up at the next month's event
and not be able to say that I did not buy a house.
So then that drove me.
And deadlines and stuff?
I mean, what if I said, okay, I have a house.
Okay, I have 31 days from now to find a deal,
find an investor, make that happen.
That's actually possible.
It would just be an insane goal and time frame together.
But it might be what people need to have the gut.
Like, have the gut, then you give yourself six months
and it fucking won't happen.
Give yourself a month or way too short.
Goals are your solution, you don't have any goals.
And I know that you had come up with goals.
But those goals weren't rock solid
because you didn't complete the goals.
If you're gonna go with goals, you complete your goals.
If you're gonna set your goals,
hey, I'm gonna buy one house this year.
Now that freaking is gonna happen.
And it's gonna happen regardless.
You're gonna find that deal and you're gonna buy the house.
Otherwise, you fail, it's your goals.
And make your goals realistic,
make them something that's attainable
and you can go do measurable.
Make them what they need to be.
But if you make that goal, then you make that goal happen
if you're committed to it.
And if you're not committed to it, you will fail.
But if you are committed to it, it will happen.
It will happen.
All right, let's rock and roll.
Let's go check out Mansker.
Let's do it.