40 Doors in His First 2 Years with Henry Washington | BiggerPockets Podcast 366

this is the bigger pockets podcast show 366 you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from bigger pockets calm your home for real estate investing online what's going on everyone this is Brandon host of the BiggerPockets podcast here with my co-host mr. David Green what's up man welcome to the podcast thank you very much it is dumping rain over here which is very odd for California so let's go in the winter I feel like that's all it probably fogged more so but yeah California in general we don't get a whole lot of rain it's you like you forget it exists until it happens mm-hmm well I understand that I understand that well I escape that because I don't want to live in Washington anymore and now I know why I was the key unit tell you about the rail cuz I had two flips going on right now and the rain is no strangers from getting out there that's I was wondering why I brought that up in the first place I was I didn't factor in for rain you never get it in other words you just you're just starting conversation so you could talk about yourself so it's like hey did you do CrossFit oh I actually do I do CrossFit every day and that kind of thing wasn't it admit I have to fit my CrossFit between not eating meat and having like clean food well you ruined my segues I'm gonna do it anyway speaking of Washington today's guest is Henry Washington like that without pretty good that's pretty good too because Washington rains a lot yes nicely right see thanks our guest today is Henry Washington real estate investor out of the art Arkansas am I saying that right Arkansas Arkansas the Arkansas Arkansas market super legit investor I met him at BP con 2019 was really impressed by him in a story and I said you have to come on the podcast and tell it the guy's done he's got 40 doors in the last just been doing this for 22 years forty doors doing over half a dozen flips a year and just had such a great way of thinking about real estate and growing his business you guys are gonna love it today so hang tight for all of that but before we get to today's interview with Henry let's get to today's quick tip all right today's quick tip is simple something Henry touched on the show today he actually landed his first deal as he's gonna tell you the story he landed his first deal simply by doing what this quick tip is tell other people what you're doing we've said it before in the show but I'm gonna say it again because people still don't do it if you're trying to invest in real estate tell people hey I'm getting into real estate investing or I'm trying to invest in real estate or I'm a real estate investor you have any deals those questions or I should say those statements to people are going to land you deals if you do it consistently enough I'll let everybody in your circle know that you invest in real estate and that is today's quick tip and now it's time for the interview with Henry Washington again so many good things in this to this interview this story about how we got to 40 doors in the last just couple years of doing it while still working a full time job make sure you listen to his his idea of like the deal funnel how he's built that in multiple different ways of getting deals and why that's so important in the deal deep dive he walks through an amazing property I I call it like the better than Bert it's like even better than a normal bird deal you'll love that and then in the fire round we talked about something called the fort wish she named it on the thing I stole from David the foresee principals with contractors so this is a foresee principal when dealing with contractors and if you follow this mentality this process you're gonna have a million times easier time of dealing with contractors and you won't do what I did like last Friday night which was driver on at 10 o'clock at night looking for an ATM machine to pay a contractor don't do that don't do what I did instead follow the 4 C principles so hang tight for that and without further ado let's get today's interview with Henry Washington mr. Henry Washington welcome to the bigger pockets podcast man good to have you here thanks for having me appreciate it yeah so let's get into your story so you and I met at the BiggerPockets conference 2019 and I was like I gotta get this guy in the podcast cuz his story is incredible and that's that's how this hat came to be so why why would I say that anyone tell us your story set at the beginning what did you do before real estate I just get into it sure now yeah I've spent most of my career working in the IT industry so I've done software development and data analytics for big retail mostly and let's see so I moved to Arkansas where I'm at in 2010 and it was just me and I was here by myself and I was working and and you know life was great I'd make a paycheck and then I'd spend a paycheck and and then I got married so I met my wife and 365 days after the day we met we got married now I am so yeah that went fast and then I'd say maybe about six months into being married we had a conversation and we're talking about what we wanted our future to look like and family and kids and all that and so in the middle of the night that night I woke up literally in a panic because you know I had gone from this single guy you know just good job educated and now all of a sudden I've got a wife and we're talking about having a kid and I had no savings like none I had $1,000 in the savings account and I knew that that wasn't gonna be enough to support a wife and child like if anything goes wrong I you know I was gonna be in a tough place and so literally 2:00 in the morning started googling like how to make extra money and it started googling passive income inside hustles and I came across a TED talk where a guy was talking about passive income streams and the way he said there's tons of passive income streams but you know he uses real estate and rentals and I thought and we like real estate you know we'll stop and look at open houses for no reason so you know why don't I look into this real estate thing and so finally was able to go back to sleep and the next day reached out to a real estate a real estate agent friend of mine who worked at the same place I worked and she was super thrilled to kind of that I was into it and literally brought me a box of books yeah and was like pick one and read it and so the one I picked was Rich Dad Poor Dad nice I read it and was was hooked from there and decided okay well I'm gonna do I'm gonna do real estate and I'm gonna buy a rental I figured I could I'm a people person I didn't I didn't have any fears about being a landlord or or what that was like so I knew from there I wanted to figure out how to buy a rental property and so that's kind of that's kind of what got what got the wheels turning what do you think it is about Rich Dad Poor Dad because I mean you know we talked about that on the show a lot right a lot of people I mean myself included in there has changed our life and pointed us towards real estate though it's not a real estate book what why is that what what about that book made that such a thing so I think one thing I got from it that actually isn't technically related to my real estate background but kind of so hey I think it's super motivating like it just motivates you as a regular guy to feel like I can do something powerful right and I can do something that's gonna change my life in my family's life but I think that one of the most important takeaways I took was the concept of paying yourself first that's not something I had ever thought about or done before I had always paid all my bills and then tried to save and that worked for like two weeks and then it didn't work anymore and and so I told my wife I said hey after reading this book I said let's just set aside 10% of our income first we'll pay our tithe and then we'll pay ourselves and then we'll figure out the rest and I said we'll just put it in a savings account I said if you know if something crazy happens it'll be there it's not like we're spending the money it'll be there and let's just try that and let's let's continue down the real estate path but if in 12 months I've never done a deal I did the math on 10% of our income I said look at how much we'll have in our savings account that's better than the thousand we have now and I mean that was just a powerful thing taking that little step and watching that money grow showed me that they were that the words in the book were gonna actually be helpful for me and so it I think it's just a motivating book you know that concept of like paying yourself first it's a it's a common thing you know like Rich Dad Poor Dad talks about it and the richest man in Babylon talks about it Dave Ramsey talks about it and it's so wow it's so simple yet so powerful right and now a lot of people will say you know well I don't have any money to set aside for savings but the fascinating thing and Mike Micallef 'its who was a guest on the bigger pockets business podcast recently he makes his point about the reason we do that even if it's just a dollar or two dollars or five dollars because it's more of a mental game than it is a tangible one though you're not getting rich necessarily I have ten percent your paycheck going into a savings account but it's more of a mental thing so what do they do mentally to you yeah that's that's kind of what I was gonna say is the the the thing I think that is a key for an entrepreneur to be successful right it's it's mindset yeah it's it's I think differently now two years into this real estate journey than I ever thought before starting right and it's it's just a lot of it's the power of knowing you can do some knowing you can take nothing and turn it into something right yeah and in when you know you can do that it kind of takes away from some of the fear that investing can bring right and and you know the one thing I tell people I like to do now that I that I never did before is when when I do you have a fear about something when I have a fear about an investment or a fear about making a decision I try to write those fears down right I'll put them on a piece of paper because I want to see I want to I want it i want i want to the the chemical reaction of writing it down and then looking at it just okay is this a legit fear and i take those fears and then i write down what some of the actual things i can do to alleviate those fears are and if there's little things i can do to alleviate those fears that can help me take that step then i know like the feet here wasn't really a big deal it was just something we just kind of have these predetermined fears on her mind that aren't really real and so by writing it down and thinking through what are the things I can do to alleviate those fears it kind of helps me get over them and it helps me to move forward and kind of keeps you out of that analysis paralysis or just fear for no reason kind of basic entrepreneurs tend to get yeah that's really good I know a lot of people when they're learning I want to learn something they come looking for a step-by-step process just like a formula tell me and I hear this all the time tell me where do I get the deals like there's this idea that there's a website if you tell me what the right website is I'll go there they have the deals and I can buy it and it's that simple and when people realize it's not that simple as when they lose heart and I've noticed that the people like you Henry and we're about to tell people like what you've actually done in that period of time you did which is where this credibility comes from that I guess we probably should have established before we started talking to is the mindset is what the common denominator is with the people that are successful and the thing about Rich Dad Poor Dad to me that really stood out was it was actually kind of an offensive concept to a lot of people but it was that rich people think differently right that wealth is a result of how you think where as we like to believe well wealthy people think that way because they started with wealth and so that's why they think that way but it's not it's they became wealthy because they look at money differently and that little thing like paying yourself first I'm gonna set aside 10% 20% of my money and I got to make it work with everything else and if there's not enough well then I better get another job where I better make coffee at my house instead of Starbucks or whatever little change you have to make is what rich people do with money they don't earn money through w-2 jobs right they don't pay as much taxes on their money they think about investments and something that will grow when they're not working and really if you learn to think like rich people think well Robert Kiyosaki figured out was that you will get the results rich people get and I don't know why when it comes to money it is so hard for human beings to get that through their head because it's like that with everything else in life right if you want to get a better body than you do what people who have good bodies do you eat the food they eat you workout that they eat a boom you get the body right we would never go to someone who's in really good shape I'm not gonna listen to your advice because you said you already look really good right like of course do you think that way but with money that's what we do is like well he's just a rich a well why am I gonna listen he doesn't know what it's like to be mean like yeah that's exactly why you should listen to him because he doesn't know what it's like to be you your way doesn't work your way gets you the result you get and I love like Henry you have a you have a talent for explaining this and very easy to way understanding that you got to think like this and actually I'm looking through the notes and you have such a solid simple process for how to know when to buy when not to buy i'm really excited to get into this brandon would you agree have you seen similar patterns with people that are successful yeah definitely i mean it definitely is how many times do we hear people talk about that rich people are lucky or you know i'm not wealthy so i can't invest in real estate it's like it's a simple mindset shift so obviously henry you made that shift by reading brushetta portends so let's walk through that how did you go from that now you get the education side you're excited you're motivated what did you do then with that information the first thing I did was I decided to just tell people that I was a real estate investor and then I was buying rental properties I hadn't bought a thing but I wanted to put that energy out there yes I knew if that's where I wanted to go and I knew I was going to do whatever I needed to do to be successful so why not go ahead and tell people that that's what I do and so by doing that a good buddy of mine came to me and said hey man I heard you're hearing you're buying rental properties said I have a house that I need to I need to sell are you interested and I was like yeah man tell me about it and so he had a house where he and his family lived he moved out of that house to move over to this the church campus where he was going to church and he was living there to save money because he had plans of buying this larger property that someone he knew in the church was going to sell to him and so he was saving the money and he had gotten to the point where this guy had to sell that property he had the money to buy it he needed to buy it now but for him to use the loan product he needed to use he needed to sell the memory residence he had before and so he said I gotta sell it I've got a tenant in there I was I live there so we could get his credit together and then he can buy it and that never came to fruition so I need to sell it here's what I'll sell it to you for and I ran the numbers and it was a good deal and I said okay well I'll buy it and we talked it over and I put it under contract and then I panicked cuz I had no money had no money and I didn't know how I was gonna but I just I just I was just gonna figure out a way and so and he understood this it like I said he was a buddy in mind I said it was my I knew it was my first deal and I you know but you know he trusted me to figure it out and so I went and just looked into how I could buy this thing where I could get money from what I could sell like how much I needed and so once I figured out I needed about 20 grand I couldn't sell enough things to get 20 grand I called well he's the business partner now he wasn't at the time he was just kind of like a no mentors that you then and I said hey I've got this deal um it's a good rental I don't think I'll be able to come up with the money would you step in and buy it because you know we need to help this guy out and it's kind of when I can't this is when I got that first taste of that entrepreneurial mind and I got it from who then turned out to be my business he said this is a good deal he said I can buy this deal I will buy this deal but you need figure out how to buy it go figure out and he sat on the phone and we brainstormed and 401k came up and I said well my wife has a 401k he was like well I think you can take a loan out against 401ks and I was like okay so I did some research called my wife she called her company they said told her what she needed to do she called me back and said we can do it and so she took out a 401k loan for the amount that we needed to close on the deal I closed on the house I kept the tenant in it I raised his rents and the new rent amount covered all my expenses and the loan payment back to ourselves for the 401k so that house is paying us back with interest for that loan so yeah that's cool and what I love about that is it shows that concept of the Rich Dad Poor Dad thing of the rich people say re real poor people say I can't afford it rich people say how do i afford it and so you basically that's what my mentor of yours was like you need to start asking the question how do i afford it which is where you started asking questions and saying hmm because this wouldn't have worked though if it wasn't a good deal right I mean if this was a horrible deal it wouldn't have worked right and it what really got me hooked on it was hey now I'm getting I'm getting paid for an investment that I technically didn't have to use anything for yeah we use some 401k money but it was a little different and then because we bought a good deal I was able to take out a line of credit on the equity and I've been leveraging that to buy other properties either the flip or tuber so that one deal has opened the door for me to grow exponentially that's cool now did you buy that one for 20 or that was a down payment you needed to be able to buy it that was the down payment I paid won that one in it it was worth about 150 okay that's cool what did it run for 1,100 okay that's awesome all right so what happened after that you bought that first deal and then you said all right I'm retired and you kicked your feet up and did nothing yeah yeah exactly no after that you know you kind of I just had this energy and I was like all right well I need to get more deals and and so while I was going through that process of buying that home I was also starting to build a marketing campaign so I could do my first direct mail marketing campaign because I wanted to keep the start a lead funnel and also at the time knew nothing about direct mail marketing I just knew that I needed to to find a way to get deals and so I started my first direct mail marketing campaign and at the same time I because I was putting that energy out there if I am a real estate investor I have another deal come to me it was from a local realtor who who was in the same real estate investors association as me he called me and he said hey heard you're buying houses I have a deal and that deal turned out to be my first flip project so simultaneously I bought a flip and uttered direct mail marketing so the flip the flip was I've kind of heard you talk about before we can get spoiled by our first flip Jack's one in a hundred percent of that situation so I bought the house for a hundred and ninety thousand it was a it was a large house so I knew I could I know it couldn't rent it and and and turn a profit on it but it was a large house in a super desirable location and the realtor had already figured out what the seller wanted to sell the house for so I ran the numbers at that price in it and it worked great from a full perspective so I bought it for 190 and it needed 40 thousand dollars worth of work and I got to that forty because I walked it with a couple of contractors I had no clue walking in it the first time what it what it actually needed but so I took I took a couple of people with me that knew what they were talking about so I needed about $40,000 worth of work and I was able to have the bank finance they financed the purchase and the down payment so I didn't have to bring any money to the table but they didn't finance the rehab so I had to find rehab money again I had no money so this guy who was a mentor turn business partner his name is Dustin he had access to a line of credit he lent me $20,000 or he lent me the 40 I needed to do the to do the rehab so I was able to so basically financed a hundred percent of the deal we rehabbed the property and it sold for 325 well leave 325 in two days owner for sale by owner and thus and the buyer also didn't have a real estate agent so so you just got the king all that it's cash I mean like you know save all that yeah and so I was like yeah house flipping is awesome let's go buy a hundred more like that I haven't one that awesome that person was great that's how that works that's good really build up that confidence you need like to just you know start moving forward on it that's that's actually fantastic so alright so you what again you you figure out a way to get this deal done in fact for no money because you borrowed money you the bank lent the money for the purchase and the rehab and then the the or sorry the bank of the downpayment they didn't need a down payment the rehab though you borrowed you said from a friend yep and so you just did this flip you made a bunch of money I mean how much profit was at the end of the day to remember I think after done it was about sixty thousand yeah that's amazing that's amazing okay alright so then you're also building this deal pipeline at the same time can you explain what like why that why is that important for people listen to this show right now because a lot of people just think in terms of one-off deals they're like I gotta get a deal you're saying I want to build a deal pipeline what do you write absolutely so I knew and this is what I tell new investors all the time but I knew and even though I was a new investor no matter what strategy I on it to do whether it be rentals or flips or assignments however I wanted to go about that business the one thing I need is a good deal and I know what got me there was I kept going there real estate investors association meetings prior to me doing any steps myself and all everybody was saying was there's no good deals there's no good deals I want to buy a house but there's no good deals and what that made me think was they're not doing the work to find a good deal so if I do it I know I'll always have exit strategies because there's a bunch of people in this room who want deals who aren't gonna go find them so I'll go fine I know right and so I knew that no matter what I do I need a good deal so I should focus on that I should take whatever resources I have whether that be time or money and fled into to creating a pipeline of deals and then from there I can you know whatever my situation is whatever my capital situation is I can let that dictate what I do with those deals because if there's multiple exit strategies I know that I'll make money on those deals so that's what I did I mm-hmm-hmm I wanted to start direct mail marketing and since I knew nothing about direct mail marketing I just listened to a different podcast into I you know read different books and I wanted to send postcards I chose postcards because they were cheaper I mean I just didn't have a bunch of money at the time a matter of fact I had I had no money to market so I'll get into that in a second so I wanted to send postcards and I didn't know what I wanted him to say so I literally just googled real estate investor postcards google image search them looked him up and picked what I thought looked good and was a message that I want to put on there and jot that down decided to mail so the criteria I chose to mail again I had done a bunch of research and what I would is i would jot down from these different podcaster things like who these people were mailing for motivated sellers and then I would go through that list and if there was something in common with who everybody was mailing that's who I decided not to mail because I wanted to find people I wanted people to get my letter who getting letters from a bunch of people in my area I wanted to find maybe a niche or or somebody who wasn't getting marketed to all the time because I was so new and I figured I you know I don't know how to compete with everybody find somebody who's not doesn't have a ton of competition in that space and maybe I have a better chance at getting a good deal and so at that point everybody was mailing to absentee owners and so I said that great I'm not gonna know the absentee owners and so I picked kind of the least common sources that I would that I would researched and then one of those was aged for me which turned out to work out really well so I I mailed with equity who were 50 age 50 or older and kind of what that brought to the table were people who were in situation where there was catching up to them you know there was too much maintenance and they were looking for a way to sell couldn't there were so much maintenance with the house that needed to be done for them to for them to sell traditionally and maybe they were embarrassed by it and so I got a really good return I sent a thousand postcards in my first direct mail campaign and probably got 50 50 phone calls Wow and I'd say I looked at 10 or so houses and I think I got two to three deals out of that first direct mail campaign so it was it was a good it was a good start so once the phone starts ringing and you get people on the phone I want to talk with you about what you do to get them under contract but before I really like your decision-making criteria so can you explain to people how simple it can be when you're looking at a deal you've analyzed it and how you decide what to do with it yeah absolutely so for me I look at every deal that comes in from a lens of buy and hold first because that's that's my that's what I want that's my bread and butter so you know if I could buy every deal and keep it as a rental forever that's what I do so that lens for me is if I can run the numbers and that single-family home is gonna pay me over $100 a door after all the expenses I'm gonna buy it it's it just makes for me barring that the location makes sense but from a numbers standpoint over $100 a door nine times out of ten I'm gonna buy it if it doesn't hit that criteria but it may hit if I flip it I could make fifteen to twenty thousand dollars then I'm gonna buy it so that I can flip it because if it hits that criteria I can either flip it or I can get that to another investor because I know that only their criteria so so when I when I'm going to evaluate a deal when I'm going to make an offer on a deal I know at this price point if I get the deal I can keep it if I get it at this price point I can make money from a flip or at another way so it kind of it helps me when going in with negotiations because I can have multiple multiple options for people now when you say a hundred dollars a door is that putting a certain amount of money down or is that no money down that's uh I do 15% down okay that's cool all right so what what's great about this is it just shows like if you have a good deal if you're out there hustling for good deals you're gonna get leads that coming in yeah you just put yourself out there you did York Mellon not everyone who sends a thousand postcards are gonna get two or three deals oh who cares right like you put yourself out there you start to getting leads coming in you started getting deals and then you get to put them through the funnel everything's a funnel right I would say that everything's a funnel so yeah guys so this one it's almost like sifting like you know like as a cage like you sifting for gold or whatever and like the other the big rocks get stuck and they go to the next pan and then the middle sized ones get stuck and they go the next one that's all you're doing 15 for good deals that's be the name of this show sifting for good deals yeah so like anyway so you're able to say hey if this can work as a rental great if not that I'm gonna try it as a flipper but not okay I'll try it as a wholesale if not you know we'll let it go and maybe even past you like passing it on to real estate agents sure yeah absolutely yeah well because I'm not an agent one of the one of the things I did to build to build my team was in order to know if you're getting a good deal you gotta run comes right I don't have access to the MLS so I had to run comps so I networked with Realtors from the from the Real Estate Association and I told them I said hey if you're willing to run comps for me like any deals I don't buy that are that they don't need me they need a realtor I'll give them to you and that's been a great way for me to be able to get accurate comps because now I have a relationship with a realtor who will jump on my comps quickly when I need him run fast because he knows that if it's not gonna work for me it may work for him and he'll deal with a lot of it and he'll get a listing out of it so it's been that's been a great relationship for me and then he lists all my I don't do for sale by owners anymore when I'm done rehabbing them but so he lists all my properties after I flip them so it's a good you know symbiotic relationship yeah solid very cool hey where are you at right now in terms of your whole portfolio like I rent allow many flips are you doing whole sales kind of like your life look like sure where I'm at about 40 doors from a rental perspective and then we flip six to ten houses a year some allow some of it most of them I would say half of those are whole tales we're just buying them because they're good deals and putting them back on the market yeah hotelling's fascinating right because you're buying a property and then you're not going through a massive rehab yeah you just reselling it against the ER yeah you're flipping it with no work that sounds like the ideal scenario and the reason you're able to do that again is because you're good at getting leads you have a deal funnel come in the top you sift through them you get leads you get things that are good so let's go back real quick cuz it's direct mail still your kind of main avenue for finding deals today or you have you shifted away from that yeah Direct Mail and I have a website a lead generation website that I that I have a Google AdWords so the Google AdWords helps the sponsored ad rank to one top only talk about that that's it and so I get I get a lot of leads through there I'd say my best deals come from my website well okay let's talk about that so I want to also go back to the direct mail but now you brought that up now now I'm intrigued you had a website a lead gen website is that through like who's that through or is that just your own through through Danny through Lee propeller okay so yeah I have a lead propeller one as well so you get delete you got a lead provider website people then either search Google or they come up on Adwords explain that process because some people just have no idea even how Google Ads even works oh sure yeah so once I got the website I needed to find a way to get that website ranked in the searchings right and you so you can do that a couple of ways you can do it organically right through search engine optimization by ensuring that you have all the special right words and your website or blog content or something that's gonna help when people google help your website to come to the top but that takes time right and so if you don't have the time for that you can do a Google AdWords campaign and so what that means is you basically pay Google to create pay someone to create a marketing campaign for your Google page and you know you'll get a sponsored ad at the top when people search for whatever different types of words you put in and so I again used Lee propellors Google AdWords team and they were able to create just different ads for me so when people search you know sell my house fast or sell a house fast in Northwest Arkansas my ad will be at the top of the search search results and it helps them to find me that's cool and of course like you're paying for those ads so yeah do you have any idea the top of your head like what what's your average cost to acquire a so to speak cost acquire customer cost to get a home yeah it depends so it depends on like what their search was so you pay you pay per click and then depending on what their search was so certain searches cost me more money I would say as a whole I pay about $500 a month from my Google AdWords campaign and and I'd say during the busiest parts of the year I might get 30 to 40 clicks a month right and during the slowest parts a year I won't I want you know like right now I'll get five six seven clicks just cuz not a lot of people are searching for selling their houses right now during the holiday season sure well so if you were let's say you spent over the course of a year six thousand dollars five hundred bucks a month over one year what do you expect like what kind of number of deals are you getting from that source almost six to ten deals a year from my website yeah so that's amazing yeah it's I mean it I mean it more than pays for itself it's not a like I said it doesn't sound like a huge volume but if you look at the profit margins on a deal versus what you're paying per month it's it's well worth it man this is where like I wish more people understood like just the power of paid marketing I mean I've had so many conversations with people in the passport it's like you know well I'm not paying Google for an ad or I'm not gonna pay for that you know this or that and I'm like you if if you paid me $500 and I gave you back $30,000 would you do that and everyone's like oh of course okay well that's weird now it's not a guarantee and that's where people get weirded out but man I love I love love love paid marketing like this that's cool it's absolutely worth it if you're gonna do the work after you get the lead right and I think a lot of people so part of the reason why I paid for the marketing is before I did it I I would search these things and then click on who came up and I would call them and most of them either didn't answer the phone or or if they did answer the phone it was a VA or somebody who wasn't local or they were just unpleasant and I thought great that means if I get on here and I get my ad at the top of the page and I answered the phone and provide good customer service then I'm probably gonna get the deal that's smart miss smart it's just it's a funnel I mean yeah you get a certain cost per click and then certain okay we're gonna call you and certain number of those are actually interested in certain number those are gonna accept your offer and the more you can improve each part of that funnel the greater chance you're going to have of getting the deal and the more money you make and the less you spend you've really seem to have optimized that really well I mean 4040 doors is no like small amount to do it how many year I mean it's like two years now right just over two years yeah geez like 40 do it now are those multifamily method like 140 unit apartment yeah no no no I think my largest our largest is a is an 8 unit most are duplexes and single-family homes and the 8 unit is technically for duplexes it's just on two parcels yeah that's amazing how are you going about financing all these properties that's a lot of bank loans yeah yes it is it's most of them are small portfolio loans from banks so we'll do the you know 15% down and and well we'll finance them that way we've got about 4 banks that we were with small regional banks that we work with and then a few our owner financed so those have been great for me I'd like to do more of those but yeah small portfolio loans on owner financing that's so funny yes the other day somebody messaged me and said you know I tried to get a loan to go through trying to get something where it was but they said and and I kept hearing about these portfolio lenders on the podcast so I finally just went out and found would call them into local regional banks and I found somebody and they funded my deal and I was so sure they were so shocked that it worked and I'm like I'm like I know like this this stuff actually works like if you go outside the big chase Wells Fargo US Bank world and talk to local people at a local bank they want to fund your deal that's how they make money is by funding you and and a lot of other people just go to the big dogs so that they can they can take those smaller deals that you got and like you said 15% down on a rental property because a local bank was willing to do that and you building relationships with them yeah beautiful thing for our fourth at 8 unit we weren't we only had to put 10% down because we bought it at such a discounted rate so I mean the smaller regional banks are there just can be more flexible especially if your deal is a really good deal you know one thing I've heard that people do at these smaller regional banks and it sounds too good to be true but it's not if you think about it is the bank will not lend to them on a loan to value of what you're paying for the property they'll lend to you on whatever it appraises for so on that one hundred and fifty thousand dollar house you got they would say we'll give you 75 percent of that and you may end up getting more than 115 to put down on that house right like you may put nothing into that deal if you get a good enough deal and it's just like Brandon said and like you said Henry when you find the deal all the other stuff falls into place of course if you're buying a house for 50 grand that's worth 200 the bank's not gonna make you put down fifteen percent of 50 grand that's they're getting like a 20 percent loan to value they're gonna give you a lot more than if they don't want it will somebody else will even if they let you borrow a hundred grand they still have fifty percent loan to value it's a super good deal for the lender so definitely do what these guys are saying and find the local bank that's maybe not doing a ton of business especially for you Henry being in an area that I would consider a sleepy town like Arkansas you may not get that in the Bay Area where everybody needs money but out there like Brandon said those banks are not doing a whole lot guys hunger he wants to put food on his table he'll he's gonna go to the Board of Directors and say we need to give Henry this loan hey K I need to get I need to get some money right now I need to get paid and that's exactly right the power the power is in the deal and that's why I tell new investors you know especially if they're having the you know the either fear of getting started to the analysis paralysis if you focus that time and attention on finding a good deal that is gonna motivate you to take whatever the next steps are for you in your situation right if you get a deal that's a sweet rental it'll motivate you to go figure out how you're gonna finance it to go figure out who's gonna do the rehab you know to go figure out all those things that people are turning their wheels over all the time that you know it's hard to figure out unless you have a deal that you're working on so this is gonna give you that motivation and push you in the direction right because it's it's the key to success anyway if you find that good deal you'll get there yeah yeah you find a good deal you're gonna find the financing for you're gonna find a partner maybe you're gonna be able to wholesale it whatever you find a good deal you're gonna get the money you're gonna get all that stuff's gonna come together if you just go and get the good deal yeah well on the BiggerPockets webinars I teach a webinar every week on BiggerPockets David Greene here teaches webinars and that's what we talk about all the time is like once you know how to identify good deals like get a lead funnel and it's not that complicated you can do direct mail like you did or you could do I mean there's lots of ways they're good to drive and for dollars you could connect with wholesalers tell everybody know about real estate which we didn't we didn't we didn't harp on that but I I meant to and then we moved on is like if you look in this show tell everybody you know what you're doing like what you want to be in real estate because people will naturally come to you just like they did for Henry here anyway filter them through your funnel and then and then you figure out what to do with it at that point cuz you have options great deals give you options and so absolutely yeah your story is a perfect example of that hey what do you wish you would have known Henry when you got started that you know now like whoa like other than find a great deal like what what advice could you get a new investor right now and say hey do this so I would say the most difficult part about real estate investing is finding contractors and managing contractors which is is not something that I would have thought was difficult going into it I have you know I would say that there's there's been plenty of situations where they're not having a contractor lined up and ready to go as its cost me money on the front side right because your ear you're holding times are much longer and it takes time to vet a good contractor so I would have spent more time trying to understand that part of the business and trying to understand how to find a good contractor and how to understanding how to set your contractors up for success you know the first the first you know deal I did I didn't have a spec sheet or anything I just walked to contractors to and said I want to do this this this and this and all that's great on the walkthrough but then when they actually start doing the work and they forget what you said and so yeah little things like that have cost me time and money and if I would have known those things on the front side and gotten at least gotten educated enough to know the right approach to finding a good contractor I think it would have helped me helped me a lot more you know the contractor thing is so much like you know that quote if I had six hours to chop down a tree I'd spend the first four sharpening my ax okay the contractor world is exactly why that is such an important quote like if you just do the work upfront to do the right things for like project management in any any field of the matter computers or it could be real estate or could be anything project management in general the more work you do up front to keep things organized and to vet the right people on your team that are we working with you the easier the whole rest of it is even though like the rest of it takes up 90% of time it's that first 10% of about the time if you just do that right I mean I realize story like I've been doing this now for what 14 years now I think in real estate still didn't try trying to get better at this though still on Friday night last week it was 10 o'clock at night and I was driving around looking for an ATM machine to get cash to give to some random contractor guy who wanted to get paid because this somebody on my team said he'd get paid and he didn't get paid and I was like I was like what am i doing I have been this now for 14 years how did I get here and I was like oh because I didn't do the upfront work required that would have enabled me not to do that and so as I was punished and rightfully so because I didn't do the upfront work needed to sharpen my axe isn't that the way it goes we the way it goes yeah like I just think like you have such a good attitude Branden that you acknowledge this is my father those people would have found someone else to blame right if the contractors fault for needing money it's my team members fault for telling him he'd get paid it's it's the real estate's fault for being this way but really it's exactly that is that I look at it like there's like stuff's gonna happen in a project like water is going to come down this chute right and if I don't have a place cut out for that water to go to it's going to spill over me and eventually it's going to cover me and I'm gonna drown in it if I don't prepare for it coming problems will happen in business people will need to get paid people won't show up things will go wrong when you take the time up front to put contingencies in place and a plan in place and train people for what are we gonna do when this happens that water has somewhere to go and you don't feel like you're drowning when you're lazy or you don't respect it there's a lot of work that's gonna go into this you just say I'll deal with it when it comes and then you get caught up in this flood and you're like that was horrific I don't ever want to do this again and and if you think about Henry his whole system is carving out a place for that water to go he fills out a bunch of deals from his Direct Mail and his SEO and his phone rings and these deals come in he jumps in right away and he filters them and he finds the three out of the 50 he can work with then he puts him along one of those paths that he's already carved out here's my criteria for buy-and-hold here's my criteria for flip here's my criteria to give it to another investor so Henry never feels overwhelmed and freaked out and like I just can't take it but somebody else would if they didn't prepare the same way that he did so what I call is like what I'm describing right now is making a place for the water to go that's your funnel that's your system that's your business whatever you want to call it you've got criteria in place and people that are trained and all the little pieces you need and then the deals would be his phone ringing with someone to call and that's all you need you find a way to find deals you find a thing to do with the deals when they come and you end up with a whole bunch of wealth and a really cool life and it's just those two things you got to work on and if people could get I see Henry smiling cuz you're like yes that's exactly right if people could get that in their understanding that to be good at real estate investing to be good at selling houses to be good at whatever you're doing you find a bunch of leads you figure out what to do with them you you proactively prepare for what's gonna happen when they come you will have a really good business absolutely 100% it's a that real estate is just so super powerful and not extremely difficult it takes work right it takes effort it takes hustle it takes a never quit mentality but but anyone can do it right if you are willing to put in the work and you have the mentality you can change your life and not just your life you can change the life of people around you and and stimulate your economy and there's just so many positives and I just I want to share that message with as many people as possible it's so good so true so true alright so Henry let's go over to the next segment of the show cuz I want to go a little bit deeper it's time for the Triple D the deal deep down deep dive I don't know if I can say Triple D cuz you know what's his name on the Food Network might have that thing trademarked but I'm gonna do it anyway time for thee well go ahead so you could dye your beard blond good I could I could be doing it alright so time for the deal deep dive Henry we're gonna dive deep into one particular property that you've bought or a deal you've done of some kind and get to know it a little bit more intimately if you will so let's fire a bunch of questions you got something in mind that we can dive into yeah absolutely all right question number one for me then what kind of property is it and where's it located yeah this is so we'll talk about that that 8 unit that's four duplexes it is multifamily four duplexes and two empty lots all right and that's an arc arc Arkansas right yes Fayetteville Arkansas how did you find it I found it through a hustle so I was a partner and I were out driving for dollars one day and we came across an apartment building that looked like the roof was having some trouble and so we had added that to our driving $4 list but because we were mainly only looking for singles and duplexes but because this building looked pretty dilapidated I looked into it as soon as we got back home and so I pulled up the county records and I found the owner and I happened to pull up the deed as well because I didn't want to mail up p.o box I wanted to see if I could find an actual address to mail so I pulled up the deed to see if I could find an actual address and what I found on that on that deed was it had the stamp from the title agent at the closing company that they closed with and she was the same title agent that we used to close all of our deals and so I said well maybe I'll call her and see if she knows the guy and so she's been in the business for years so I called her I said hey brandy looking at this deal you closed you know I'm 10 years ago with so-and-so do you know this person and she was like oh yeah I know him he's a good friend so she was like you want to talk to him and I was like yeah that'd be great so she called him told him we were interested in buying this apartment building and set up a meeting for us and so we went and sat down my business partner and I wouldn't sat down with this gentleman and talk through talk through that building and it worked out that we were not able to purchase that building so right at the end of that lunch meeting my partner and I was like well do you have anything else she'd be one when this is though and he was like well I got some duplexes but they're they're bad you don't want those and I'm like now we probably probably do we do and so we got up from that meeting and we drove over to these really rundown duplexes on this you know cul-de-sac Street and he said he was willing to sell them if we would buy them at what he owes the bank on them so he just wanted to get out I mean and they were they were they were bad yeah I mean they were falling apart but four duplexes in two empty lots I say they're empty lots there were six duplexes but two of them burned down because drugs are bad so and so we were able to we were able to that's how we found them it was through him and so we went through the purchase process from there that's how much how much did you pay for it we paid $200,000 okay and how did you negotiate that price yep so he that was that was a struggle he said he just wanted to pay off the bank but didn't want to tell us what it was and so we made we made an initial offer of like a hundred and ten which is crazy low and they shot it down and so we went back and forth maybe three or four times and landed on two hundred thousand which is which is what he needed to pay off the bank so we bought it for two hundred thousand and it needed about I think we budgeted a hundred and forty thousand for renovations okay so what how did you fund that entire thing then yeah so a small regional bank we went to them with the deal and because we were buying it for such a good deal and we were putting about a hundred and forty into it they wanted to see it so they actually came out and they toured the property and we showed them and told them what we were gonna do to renovate it and what we thought rents would be when we got done and so we were able to buy that for 200 with a hundred and forty renovation budget and we put 10% down so they actually wrapped the renovation in there mm-hm and you just paid 10% of the whole entire thing down we played 10% of the pile of it and they funded a hundred percent of the rehab yes sir boom so good time to be borrowing money I'll tell you what okay what did you end up doing with this because I'm sure this sounds a little different than it is a standard deal yeah so we still have it and the plan was always to make it a long-term rental right and so we renovated let's see we've renovated six of the eight units the other two are starting construction right now and so we're renting average rents at this at this place or 725 to 750 a door so we've got six unit ran it six units ran it at about their rate and a couple of months we'll have eight units rented at that rate and then the plan from there is to the benefit to to the to the empty Lots as their zoned for multifamily up to 24 units so we're gonna try to stick as many units as we can on those other two Lots and so we were able to buy a good deal buy a great deal for very little capital down that's already cash flowing at six units that's gonna even get better with eight units and then we'll build as well so I'll kind of get to get my feet wet it's a new construction that's because you bought somebody else's problem that's right exactly what you did that's right and and big it and we asked he wasn't even gonna show it to us you know he just whenever you're meeting with somebody who's in this business ask him ask him what the gap they might have something they might have says isn't that funny that just you'll hear people say there's no deals and then Brandon will say well how many people have you talked about real estate they're like well why would I talk to people I mean we went we basically had a meeting where we decided we weren't gonna buy the thing we went to have the meeting about yeah but because we spoke up and said well what else you got we landed probably our best deal you know that just scares me as to how many chances I might have missed I know I actually one of the strategies I teach on webinar sometimes that's a really easy thing for new investors to find deals let's go on Craigslist unlike instead of reminding your phone every Monday morning go on Craigslist and go to the for rent section and go look for every one of the mom-and-pop landlord's listing their properties for rent you always know it's a mom-and-pop codes like two lines and like a crappy picture right call them and just say hey I'm not looking to rent your property but I'm a new investor and I'm looking to buy something any chance you want to sell that now grant chances are they're not gonna want to but what do we know we know that a there are real estate Wester and be they're probably not very good at listings which mean then the third question if they say no like it's a win-win either way cuz either if they say no fine you built a relationship you have a phone number of a landlord now in your area that owns property if they say no on that one that the question you just asked is perfect there okay well do you have anything else and chances are they're gonna they're gonna go hmm well there is that one piece of junk property I hate but you're not you're not gonna want that one yeah like yeah and so that one phone call could lead you to a dozen or two dozen leads because that person owns two dozen properties and now you get to find out what their problem is and you get to take it so yeah simple strategies like that and then combined with what you just said about asking with everything else so so powerful what's cool also about this is interesting is you know we talk a lot about the Bur strategy at bigger pockets they buy a property you rehab it you rent it out and then you refinance they get a whole new loan and then you repeat the process now the reason we talk about this number one question I get about burr is I don't know David feel the same way but why wouldn't you just get one bank loan on the whole thing because what you did is that you didn't have to even refinance you got a loan that had to rehab into it and they just made it one thing that's like better than burr it's like the the burr plus method but it's really hard to find those banks but the banks there the local community banks that are gonna be the ones that can do the better than birth strategy there that's cool absolutely love that alright so finally the end of the day what was like the outcome in terms of you know what do you think the property is worth today oh you know what kind of cash flow are you expecting from it now sure I think it's worth somewhere between five and six hundred thousand if you count the buildings and you count the Lots who knows what it'll be worth once we actually develop those other two Lots so I mean it's it's just been a good deal yeah and like I said average rents are 725 to 750 one of the one of the duplex is a 1-bed 1-bath so the rents are a little lower on that one but the other ones there are two ones and two twos and the fact that now you own this property that's that's already been rehabbed your capex like your capital expenditures and you're in repairs should be lower long-term you might have a few kinks to work out there always is at the beginning of a rental of a new of a new unit that's been rehabbed but you should have a fairly low expenses for years going forward now right so cool and and also this this property is we own most of the street I think there's only three houses on the street that we don't own so we were really able to kind of change the whole dynamic of the neighborhood by rehabbing these properties which helps us keep the rents up yeah so good so good I last question David from the do deep dive well what did you learn about this deal oh man drugs are bad learned so I think this deal has gone on longer than we've wanted it to from a rehab perspective so I think yeah I'd say we got this deal early enough in our career in our and our real estate investing journey that we didn't have the ducks in a row on the the contractor in rehab side we spent a lot of time vetting a lot of contractors and if still we're on our third one now working on this same project and so we've kind of taken learnings from each of those scenarios and and we're trying to be better at at being able to do rehabs on projects especially especially when you have them at a large scale so we like I said we're we're doing spec sheets and I'm sending those spec sheets out before I even meet the contractors they're like I want you to get a sense for what you're getting yourself into before you get there so that we're not wasting each other's time and so that you understand kind of what the size of the prize is for you before you even get there those are things that never I just didn't think to do on the front side right and so um so most of the lessons learned from that contractor perspective they're very cool they're very cool well thank you for sharing that that's one of my favorite dill deep dives we've done yet that's a super legit deal it reminds a lot of the four-plex that I bought for my daughter Rosie we bought that one for dirt cheap had to rehab now we're getting 750 rents out of each unit and yeah it's very similar cool all right man well before we get on to the last final couple segments of the show I'm curious what what's the future look like for you I mean are you still working a full-time job somewhere is this your full-time gig and then what's what's it look like going forward yeah I'm still I'm still a full-time full-time employee man so the real estate is still a side hustle I am trying to move into a small multi-family I say small multi-family any you know five units and up to as many as possible really so I'm halfway in the mat Faircloth book on raising private private capital and and so the next steps for me I've already started marketing for larger multifamily buildings and so now I'm I'm at the stage where I'm trying to figure out how to source the money for these larger deals because we want to start scaling a little higher super cool super cool man all right well with that let's head over the next segment of the show the world famous by around by around this was the part of the show where we fire some questions directly at you from the BiggerPockets forums see what you got to say so let's do that now number one comes from Brent Davidson when you're hiring a contractor this is actually perfect for saying how do you handle payments like I know you're not supposed to pay for the whole job upfront but do you pay for something upfront yeah yeah so I've got a couple different scenarios so I've been lucky enough to find a contractor who puts his skin in the game and I don't have to pay him until he's completely done so and that's an area I don't pay anything but most contractors want some form of net down payment from me and so what I try to do is I'm fine paying a down payment but what I asked them to do is to show me which line items that down payment is going to cover so that when they're asking for their next draw it's easy for me to say okay I paid you X down and that covered these things and these things are now done so I'm okay paying you the draw and then I make them tell me what that what that's gonna be for alright beautiful and I'll just add on to that that ninety-nine percent of the complaints I'm getting from people I love right now saying I did everything you said in your system except I paid the contractor upfront what do I do now I don't even know if there's an answer for what do you do that you just can't it's like trying to put the toothpaste back in the tube you're committed you just got addressed right stop doing that if you really really like that contractor okay but let them do it give them a little bit of money let them do some work and give them on that and some more money promptly don't make them wait two weeks that's not cool but yet don't squeeze out the toothpaste and then call me and say how do I get it back in the tube or anyone else cuz science has not solved that most of your deposit when you first start goes towards materials for them to get started I just met them tell me what materials they're gonna get and then you buy it and I make sure either all buy it or I'll make sure that that's what they got I always get annoyed that like when contractors who I'm paying material cuz I'm - I'll buy all the material ahead of time like I don't like a Lowe's let's go get a big bulk order then they still ask for you know half down I'm like what but I'm buying all the material you you literally have no expenses other than your employees which if you get the work done you get paid you know at the end of the week or whatever a couple weeks and still a irritates because then I know why they're doing it it's because they have to pay for last week's work they don't have money for and so they're using your down payment as salaries or whatever for their team or for their beer for the weekend I don't know whatever drives me drives me insane so yeah the one if there's like one trick I've learned with contractors that just works so well it's that it's like they got to always be hungry and then if you do your job it in pain responsibly and quickly like you said David like for example if it's like hey you get $2,000 when the carpet is done it is amazing how fast that carpet will get done when you hold to that rule of you get paid the two thousand dollars when your carpets done they will work till midnight they will bring in a friend to work you know to get that carpet down my minute because they want that check from you and then if you pay them quickly than they you're training them I just get this done I get money I get this done I get money and so they work fast because they know that it's I don't know why that's so hard for us though cuz Brandon you have dogs do you notice your dogs are more obedient when you have a treat in your hand yeah not so it kind of hair contractors I make this mistake a lot okay but it's like this with little kids you want a little kid to do something and you say you can do this if and you say you'll get to do something else you want all of a sudden it's so much easier to look at last night exactly like last night have carrots so like I've Rosie refuses to eat carrots or any vegetable at all so I have a piece of carrot a chocolate chip a piece of carrot a chocolate chip Pizza carrot a guy teacher you eat one there you go carrot bite you get to eat the chocolate chip yo she did she wouldn't picked up every single piece of the carrot shove them all in her mouth at one time swallowed a handful of chocolate chips to get her to eat her vegetables and all it took was a little bit of a reward and they just got it done yep at how much effort would have taken for you to get her to eat those carrots without the chocolate chip like I'm 100 times more there you go you heard it here first carrots contractors and chocolate chips folks listen to this podcast because Brandon's gonna take credit for that Club a year from now he's like no one's gonna remember DC principal actually the CCC principal right before I call it the four C's principal and he's like texting right Murdoch a trademark this is really fast all right next question in Philly how do you go about finding new tenants what websites are getting most of your leads from thank you yep so all I do for new tenants is so I use cozy as my property management system cozy at CEO and cozy syndicates so I put I create the listing on cozy its indicates to Trulia and realtor and hot pads I believe and then I put an ad on Zillow that's it I don't put a sign in the yard I don't use Craigslist I don't use Facebook I just use those sources and I get enough leads to filter through and then I do open house style showings so I pick a time when I will be there and everybody has to come at that time and but you know kind of what I've learned doing that is I get there I try to get there a little early and I don't stay much long the time I said I would be there so if I said I'd be there at 1:00 and the showings done at 1:10 I might stay till 1:15 and then I'm gone because you know if people show up late that could potentially be a problem for me later maybe they'll be late on rent so I like it when people are punctual I like to utilize my time well and so I make everybody come at one time and if it doesn't work for them I'll give them another time the next week when I'll be there in the next couple of days but I don't just meet every individual tenant at the place and that takes a little bit of faith to be that way because you always wonder like what if I miss the perfect one you know but all my experience with having like good employees or good tenants or good anything's is they don't let something really small deter them right like if they really want that place they're gonna show up when you tell them to be there they're gonna be there in time they're gonna come with a good attitude and make a good impression absolutely good stuff all right next one next I like this one so how do you this is the stand point they're asking about like motivated sellers we're talking with sellers but how do you make yourself more likeable how do you get a seller to sell to you and not to somebody else any tricks on that I think I'm just naturally a people person and I you know and I think that helps I always try to keep it the forefront of my mind that this this is a people business it's not a real estate business right real estate is the way that money is made but people are the vehicle for getting us there right and so I make sure that I try to take the time to understand you know what the situation is because we're buying situations right we're not buying houses or if they we were just buying houses they'd call a real estate agent right but there's there's definitely a situation going on and I want to try to sympathize and empathize with these people as I'm dealing with that so I sit down with them and I just I just talk and I just listen and sometimes I know you know I know the second I get there that I'm not gonna be able to buy the house but that doesn't stop me from trying to understand what their problem is there have been multiple scenarios where we've done things to help people that had nothing to do with buying their house and we didn't buy their house but it was just the right thing to do right and like like what one of the things there was a lady who who was suffering and looked like from she had cancer at some point and she had this immaculate yard I mean look like a professional landscaper had maintained this yard for years I mean it was just everything was well groomed and we went to look at her house and she just wanted more than what made sense for the home but while we were talking to her part of the reason she was wanting to sell was because there was a a lawnmower repair shop behind her and they were running big machines and the and the carbon monoxide it puts off really made her more sick and she just couldn't run her lawn mower to then take care of her yard because she just it she just wouldn't feel well and so kind of one of the things we did there was even though I couldn't buy her house we went out and we bought her an electric lawnmower so that she no take care of her yard and we dropped that off to her and until it meant a lot to her and you know if you think about it from a people perspective it's just a good thing to do but also I've since gone back and checked on her just to see if she was all right and she told me about a deal around the corner and I went around the corner and knocked on that I'm not on the door for a house that ended up being a really really good deal we didn't get to buy it another investor actually a friend of mine it but you know hey you know had I showed up at her house sooner I might have been able to buy that deal right and and you know it have we not done what we've done you know you might not have some of those opportunities and like I said it's a people business people talk right you never know who somebody you're dealing with whether you're not buying their house might tell all right and have to call you we I get word-of-mouth referrals all the time and about several properties from word-of-mouth referrals so I just try to find a way to help everyone and if you think about each of your appointments as an opportunity for you to help someone and figure out a way to do that whether that means buying the house or not like the success will come yeah really good really really good dude all right well let's get on to the next segment the show the last segment of the show and this is our alright the famous for is the part of the show where we ask the same for questions we've asked every guest every week and now we're gonna ask you so mr. Henry Washington by the way I mentioned earlier a guy named Mike Micallef 'it's on the BiggerPockets business podcast just a big shout out to that episode was so good like a light transformed a lot of how I operate my business so I started recommend everybody go listen to me listen to the show in general and I subscribe to it and all that but go look up the episode with Mike Micallef it's it was so just inspiring yet like reminding me of some stuff that I just wasn't doing right in my business so check that out that's why again the BiggerPockets business show is so good to listen to cuz like we are running businesses so I guess we're invested in real estate but that we run real estate businesses kind of like a guy who owns a bakery yes they're baking cakes but they own a bakery and we own a real estate business so check it out and anyway side note there but now Henry Washington number one favorite real estate related book I would have to say honestly right now has been the book on raising capital half of it having read half of it it's really big I mean I think it does a good job of kind of explaining some really what can be difficult subjects on raising money and you know in a way that makes sense for everybody and so yeah absolutely I'm definitely enjoying it that's all good job Matt EF very cool right what about your favorite business book favorite business book so it's a little different I don't even know if you'd classify it as a business book but you know I've really enjoyed I really enjoyed the alchemists hmm not necessarily a business book but just a great book for motivation and understanding that if you're if you're doing the things that you are meant to do then the opportunities will come and you'll you'll you'll be able to realize the things that you want to realize in your life and in your business I really want to write a book someday just like The Alchemist that's such a powerful I loved it yeah I gotta write the next The Alchemist too it's gonna sound like the office like the Michael Scarn yeah all right what are some of your hobbies oh man hobbies I've got I've got a 15 month old daughter and she is so much I'm no hobbies alright she is so much really enjoying spending time with her I play basketball I haven't played in a couple of months now but I used to play quite a bit so I enjoy doing that and just you know hanging out with my wife we have a good time very cool I never for and every what do you think separates successful real estate investors from all those who give up fail or just plain don't get started yeah man and we talked about it earlier it's it's mindset right being being open and willing to understand if you're first getting started that you probably don't have them the right mindset and in being open to understanding and changing that mindset and realizing that there probably isn't a problem that you can't figure out a way to solve on some level so having the right mindset and the right attitude is what really sets apart though successful investors so good beautiful this has been very good Henry and by the way did we ask you how many units you have right now yeah 40 40 40 doors yep six to ten flips a year how long ago did you get started just over two years ago there you go four doors in a little over two years so four people want to find out more about you where can they find you the best place to reach me is probably Instagram so you can find me at Independence Realty Group on Instagram or you can shoot me an email at JJ w a sh for five at gmail or my business email which is Henry at independence realty group NWA calm very cool all right well I'm gonna go follow you on Instagram I think that's what bran and I were actually both doing well thank you so much for being on the podcast today really really good stuff and I look forward to kind of seeing where you're headed in the future without I guess further ado David Greene do you want to take us out yep if you want to follow us on Instagram he is beardy Brandon I am David green 24 Brandon's trying to get to 100,000 followers so please unfollow him and go fall socialistic competition that we're having right now and I need some help just kidding and then Henry you were independence Realty Group on Instagram independence Realty Group yes sir cool man this is David Greene for Brandon revenge of the alchemist earner you're listening to BiggerPockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the Heights you're in the right place stay tuned and be sure to join the millions of others who have benefited from BiggerPockets calm your home for real estate investing online you

Channel: BiggerPockets

Views: 289,160

Keywords: biggerpockets, real estate, real estate investing, investing, rentals, rental property, investing in real estate, income property, bigger pockets, passive income, biggerpockets podcast, real estate investor, bp podcast, real estate podcast

Id: PVTKJmDC3GU

Length: 77min 26sec (4646 seconds)

Published: Thu Jan 23 2020