Broke college Kid to millions earned in real estate, featuring Pat Jeune - Episode 13

welcome back to another episode of a celebrates a great podcast as I continue to tell you week after week episode after episode I am fining you practitioners I'm finding you experts I'm finding the people you want to learn from the people you want to get insight from the people you want to grow from as I stayed on the previous episode the thing about college and the thing about a lot of these institutions we are being taught from someone who isn't actually doing with their teaching right so case in point when I was in college there were touching me I was taking business 101 but they had me taken theology how is taking theology gonna actually help me in business right I had someone teaching me marketing but he wasn't an internet marketing I asked someone teaching me business 101 but they did not own a business so as we continue to build on a celebrate the great podcast I continue to find the experts people who are absolutely incredible at what they do and today is no other today I wanted to bring on a new construction expert and the reason why I love Pat and brought him along because one he's younger than me and two I literally got the watch him build buildings from the ground up from college so without further ado I want to bring on a real estate expert entrepreneur and a teacher to accelerate the great podcast what's up hey you know what's going on be a good man feeling good thank you for being here so I've seen another day on Instagram that is like a void in like new construction I see a lot of different people in real estate doing incredible what I don't see a lot of is people literally building buildings from the ground up and you have done dozens and dozens of buildings from the ground up and I want you to talk about that before we get in that XE how did you what made you want to get in real estate like I know you were a broke college student and you start it will estate from your dorm room right so and was able to generate millions and generate millions annually what real estate tell me about how you got started what gave you the inkling I like man I want to go all-in on this right you know like I said just being a broke college kid and just realizing that you know living in off-campus housing you know paying 2,000 a month and seeing how my landlord live where the guy who owned the building live and how easy it was for him just to collect rent you know every month was like very inspiring to me and I was like oh this is this is a serious business like this guy's building wealth he's making money like I need to get into this I need to take a serious so while I was in college you know I basically jumped I went all-in and you know you're not figured it out I was throwing house parties I met other you know developers other landlords started writing out their properties saving up my money and basically bought my first property as a junior in college and that basically got the ball rolling for me so the idea was like you saw a landlord getting your money every single month you like man this can't be that hard I could do the exact same thing for that towards other college students right towards that I started writing out to my friends class my senior year I'm in class with my tenant they like oh that's my landlord Wow so you literally was in class with people who you were renting the uh abilities right so that pretty much was like like a bug of like getting bit by a bug and just wanted to keep on for sure once I got a bit it was no turning back right you know once once I realized that you know I could do this too like I could get into real estate I can make this money you know I can make it happen it was no turning back you know I just wanted to continue to move forward and scale up from there and that's basically where I got into the new construction because you know it to me it was a higher level of real estate is a higher level of development you know and to and I knew that I was a creative person and I could kind of see what areas were calling for you know what what air should be developed you know and I could you know analyze those it you know pulling a higher profit margin you know putting up these new constructions so just like how I jumped into you know buying their first property we rented out the common stores I actually did the same thing it just like jumped in a new construction you know it's been going well for me ever since and one of the stories that I love and I don't even know of you remember this but this is like I don't know how many years seven eight years ago I knew Pat through someone who used to work with me and he caught me to come look at a job but I think the job I was looking at might have been for his mentor I think I looked at two one for your property and one for your mentor in when I came to meet you you were interning right talk a little bit about intern because I think you intern for a year straight no pay right most people wouldn't have done it right talk a little bit about that and what made you do it in why do you encourage other people because I'll tell a lot of people in my yo watched my friend intern for someone learning new construction now he could literally throw up a new construction building effortlessly because he learned the tools and the tricks but can you touch on for the young people who are listening a lot of us look at learning and working for freest I'm being used or some sort of a get over mentality right you know what made you do it because I'm sure people was telling you probably at the time Pat why are you working for free so talk to me a little bit about that I mean I was just such a strong believer in real estate and a strong believer in myself and I knew the way you know what the future holds and what real estate could possibly do for my life and and basically the back story is when I bought their first property you know I said I already you know reached out to other landlords other investors and I started writing out their property so when I bought the property I knew that I could rent it but the part that I didn't know was how to fix it right so I bought a property I'm like damn now I'm stuck like I need to get this thing fixed right so then you know I started you know seeking out guys who were actually developing property rehabbing property things like that and I met a guy down tupple and he was actually doing new construction you know and I started learning from this guy I was like renting out his apartment so whatever and he's still doing big things right now that I'm tough with you know he's put up with 20 unit building right now as we speak and it was just like I knew the value that I was getting from that experience from their internship and it was priceless to the point where you know you know getting paid to learn that information or you know you could it wasn't no money that you could really pay me for what I got return for the information again I'm saying like I basically learned how to do new construction you know and took that process and kind of scaled it down did rehabs and then once that got through that went right back and started what's more valuable your four-year degree from temp or that year of intern that year interning is way more valuable than my degree I don't even use my degree right now let me ask you do you believe to do new construction of course having the mentor you like you helped but is a college degree necessary for real estate right now no college degree is not necessary for those things so I don't even have a real estate license like I'm not even like a realtor anything so you don't need a degree now you don't need College who is your college degree help you in doing numbers or it's just simple math because a lot of people we're told college college college and I don't think nothing wrong with that you finished and have a degree from Temple University right but for our young people coming up right now trying to figure it out do you suggest going all-in on something you love and developing a craft or just go on college get in that and come out and still don't know what you want to do what path I love I would say you know go all-in bet on yourself you know if you know what you want to do if you have a lane that's when I get into if you don't now if you don't know exactly what you want to do you know I wouldn't say don't go to college because if you do go to college you would get exposed to so many different people with so many different ideas coming from so many different backgrounds you know low class middle class upper class you know people who parents our entrepreneurs kids who already have ideas that they want to do you know while they're in college you know while I was in college I got exposed to my mentor who taught me construction and I'm saying so and right central yeah so if I didn't go to college like I would have never got that experience you know I probably would have stayed in my local community or West Philadelphia and who knows where I would win at that point again I'm saying the environment is important the environment is important but I mean do I think it should cost that much for the information that they're given it's general yeah it's not like laser focus right and that's something I'd say so again I'm not telling nobody not to go to college I'm not that guy I want you to do what's best for you but I want you to be taught from someone who's doing what you're doing like right is no it doesn't if physically don't make sense to me to learn marketing from someone who is in the market or learn about real estate from someone who is an active lead or real estate right so I just think learning is important so for those who I know in in a few minutes I want to talk about how someone can learn about new construction and get started with new construction but for those who just getting started in real estate right what's the first suggestion you won't get this person for someone who's just getting started or what thinking about I want to get into gang guarded you know you know I mean so for me I just jumped right in and bought a property you know it you know some people might not be able to do that so just to kind of take it a step down from that and give him an even easier way to get into real estate and I would definitely suggest ho selling you know and that's basically identifying a property a motivated seller a distressed property putting their property on the contract and then reselling it to another investor and basically collecting the difference you know and I think that you could basically build enough capital to go out there and do a real do you know I'm not telling you go out there do a whole seller I do that full time that's not what I'm saying but it's a definitely a good way to get get familiar with the business learn the language you know learn about contracts and things like that so that way you could go out there and eventually do it on your own so what's the next step would that be rehab and if we were to if you were to share the level of Ascension we want a whole cell where you know what we got then we'll do a fixer foot Dixons little go out there we'll find a actual property and you would most likely want to fix and flip this property and get a higher return versus wholesaler you know and then with that return you know that one property should put you in position about to go through and if you bought that one you flipped it the right way you sold it you should be able by two when you buy that - you should buy one runner and buy the flip and just keep it going just keep what's the next level of Ascension well after that you know then you want to be at that point where you know you probably flip into properties at a time and you're keeping one where you're running like a two-one strategy and if you want like it's you know real estate development new construction is in your future and you can definitely get there after running that strategy right there now for in terms of new construction because again our ultimate goal with the podcast we want to help people accelerate get there quicker with some things people should look out for maybe in all facets of real estate what some things that you wish you looked out for that might have happened to you that you want to tell a new investor or a new person getting a real estate that try to look out for or try to avoid anything like that to avoid I mean definitely seek a mentorship definitely building a network of investors or other developers because one of the things that's hard to determine is what is actually gonna cost of due to construction to these properties you know what is it gonna cost to do a rehab what it's gonna cost of doing new construction you know and you don't want to guess you don't want to make it up you know you want to try to get as close as possible and even put a little bit of fluff in there right so how do you even do that right so the only way to really you know get that done is you know being friends with investors being friends with developers you know or getting a mentor learning so learning from somebody who can tell you how to properly put together a budget so that way when you go do a do you're not under budget wow that's good that's a tag so begin to develop networks get in get some mentorship meet other investors and real estate owners so you can ask how much did this cost how much does this cost how much does this cost and just to expound on this is with anything not just real estate you said something key one of the best ways to do is go all it right a lot of people like you can't learn how to swim from YouTube right now you have to get in the you physically have to get in the pool to learn how to swim right I haven't I haven't I haven't met anyone who said hey I'm not a swim but I learned it from you too yeah so I know you want this thing now we'll just do it I know you were talking about property at minimum you should be buying a property per year did you say everywhere right I said you know if you want to get in real estate now did you just need to start now this year go out there and buy a rental property you know like if you have a good enough job you know you have a paper trail you should be able to approach a bank and the bank will assist you in buying this property and just go out there and get one rental property you know and and if you're making eight hundred a month cash flow from this property and if you bought one a year for the next five years you should be making at least four thousand a month well you know and with four thousand a month that should be enough of a foundation to change your life absolutely you know the Scout that business absolutely or even get into anything else that you want to do is think about what have you really bought one a year for the next twenty years and just hypothetically you're 25 about 45 you got maybe twenty thousand or positive cash flow coming in a month that's your retirement right that's your attire yet it's better than a 401k wait better in the foot I see a lot of the people cashing them out now and investing in real estate now that's a smart move and look I'm not advising like dunkey account or whatever but listen to me the name of the game is how to make your money work for you without you working for it exactly like we've been told our entire life work a job work a job work a table which is nothing wrong with working a job because your job is your investor but the thing that I get confused is work work work work work work work but when when do we come up with an asset or business or something that works for us when we aren't working right your real estate is working for you right now money is being made right now and you're not physically outside working that money's coming in every single month right so this is why I like past said what can you create start buying the property a month I mean a year and after five years you got five after five ten years you got ten and now that's positive cash flow that is coming in and you aren't physically working for it and that's my problem with society is that we've been conditioned the same thing work work work work work they putting us on a 40 40 40 plan which is fine a good job work forty hours a week work it for forty years and then when you gret when you get done they give you your pension which is 40 percent of what you were making and expect you to live off of that retirement ain't retirement no more yeah you done to me so I feel like you got to make your retirement right and I think you could definitely achieve that with real estate I mean this set up for you to have financial freedom you know it has all the pieces in place for you to be a true investor a passive investor and I'm saying like if you want to do flips you got you could get a GC you don't have to be the GC you know tell me what that mean when you say that you see four people GC is a general contractor so basically you can run your own project so you got hire somebody to run the project for you you know and if you even if you don't want to be that far apart you can probably even get a property manager you know a construction manager or you go very closely with who the man is the day-to-day stuff you know you just basically communicate with that one person versus communicate with all the subs right now then they have Realtors who would sell the property for you right then if we talked about the rental strategy they got property management companies who a man is a property and gives you what they call mailbox money right where you sit home where you on vacation yeah one of the countries that you like the garage right and you're just getting that check in the mouth you know like real estate definitely has all those aspects that could set up that financial freedom for you and just say I was in a meeting with my mentor and he has like a 15 unit apartment building site yeah I just sub this out to a management company directly 8% a month right just think about just that's a business going up people who all real estate cannot manage it for you I'm going to go for this percent right it costs you zero dollars to do that is zero you build the business off of just networking that's where you're networking I mean like even early on when I was in college like I built the business for myself leasing apartments for other investors other landlords you know whenever I has a Collison or like I throw parties I know a bunch of people if you let me rent your apartment I guarantee you I could get it done and through that network that I built from like throwing parties and things like that it's like I get an apartment I was getting a renter in no time like soon it became available and I'm just promoting it no life sentence no and just to add Pat I feel like you're doing new construction let's say he doesn't have he's a GC but he's not a realtor and all this people people get so caught up packed with trying to have everything in order I need to get my real estate license first I got it I got to do this but you know you just got to start yeah it's like this man's build a multi-million dollar businesses and buildings all often just making the decision to start right and would you mind sharing your latest deal with us I know you're working on a deal currently that you bought a few years back right identifying the undervalued piece of property land and talked a little bit about that there's a lot of people want to do new construction you do got a really learn tractor so I think just to give a just to go deeper into the story it's like you know back like two years ago when I bought this property I was I was also buying property that wasn't in a little bit hotter area of this Aaron car breweries down cultures you know where I was selling them for you know for 25 half-a-million right and you know Philly's just block by block so you know you go down two blocks things might change and nobody believed that if you went down two blocks these things would change but I knew if I purchase this two blocks away right and I sat on it you know in a year or two it'd definitely be worth more or the same around the value of what the property is selling for today right so I just basically went out on the limb a calculated risk though cuz I I can see where I was going I saw how the market was moving and I bought this property for 40,000 it's a corner property cmx - and I'm currently building a being for someone who knew the real estate cmx - so the property is on sale mixed to them so what is ectasy mx2 is its commercial and - residential so by right I could put a commercial space on the first floor and two apartments above so what I'm actually building is a four-story building commercial on the first floor and to buy level two-bedroom apartments with the roof deck which adds a ton of value to this building right here and right now once the building is complete it'll be valued at 1.2 million dollars and I bought it for forty thousand years ago Wow Wow so you saw value you said I'm going to buy this and hold right and now it's gonna be worth 1.2 million right so how important is sacrifice I know when you dollars work for deals annually every single year I'm sure you're sacrificing like I don't want to say fun times but there's a lot of other things you potentially could be doing instead of building wealth down because a lot of people our age they're more like party live it up now and I'll deal with the consequences later you're more likely build now develop wealth now start businesses now and I'll be good for the rest of my life so what is the mindset being on that or or the sacrifices you make to do that right I mean definitely stay in you know discipline gotcha you know at my age I still got friends from from college I got cousins you know I got everybody around me you know that still likes to enjoy life should I say you know and I think that I still enjoy life you know certain extent but definitely gotta because you know my goals and dreams like even my vision board you know on my phone you know is serious and I believe it that much to the point where I have to be disciplined you know like I gotta buckle down right now in order to you know achieve these goals you know like everything and worth life happiness was it's a pill right right so it's like I understand that right now that I'm willing to go through that uphill battle to make sure that I get there you know and never become a content you know or you know never become a content with the success the success already achieved doctor you know the amount of deals that I already done the money that I've already made again I'm saying it's still more and I still want more and I'm saying so I'm always going to push for more you get him saying and it's funny cuz you building a million-dollar deal right now and you like we're sitting here talking like man I'm working on this next two three four or five I'm like what about the one you got so it's just always keeping that for progress so I know something we've been talking about we were mentioning how much a void there is with just new construction I know I've been like your pet how can you kind of help what you got going on or how will you be able to help other people really want to do new construction and so right now I'm putting together a course and also like the hands-on training on how to actually go about building new construction you know starting from you know teaching people how to get into it from start to finish you know identifying the property identifying a lot you know getting the permits getting the plants done actually building a team of you know subcontractors that could actually get this off the ground you know and get it to the point where it's either gonna be a flip where we sell it or you know keep it in your portfolio you know when you build new construction rentals and you put that in your portfolio I mean your maintenance cost is you know significantly is minimum well it's never gonna be less than rehabbing something or buying a property that's already a rental because you know it's everything is new you're gonna understand the bones is new the foundation there's no other mechanicals is new you know the roof is knows like you shouldn't have any issues with this property for a year or a year again I'm saying so you know I want to put a course together that you know to add value to people and show them that you know they can do this too that's good and I appreciate you doing that because I think learning from the right people is important like I literally like I tell people man I'm like yo what's the hack the heck is learning from someone who did it before I don't believe in bumping my head purposely when I don't have to and I literally spent 27 thousand dollars last year on my self education that was probably one of the best things I ever done because I'm literally skipping a lot of steps and now the network I'm building and the relationships I'm building is literally priceless all right first things shout out to you for doing that and as we wrap it up any last piece of advice you want to share with anyone as they just pursue their real estate career do they need to be confident something else that anything else mindset wise that is necessary for them to get to where they go oh I would say definitely just you know eliminate off here don't set any limits on yourself just get out there and do take the risk take the jump but also be calculating it you know do as much research as you can try to find a mentor now if you can or identify somebody that you know you feel like you can connect with that's in the business you know and try to build from there also outside of that don't be afraid to like read a few books and just mentally preparing you for the jump that you bought to take on or the business endeavor that you brought to take on you know there's plenty of books out there that could help someone mentally prepare my favorites just favorite books in general yeah I mean I I think I got some easy ones like you know who moved my cheese if you could get through that book if you could appreciate that book then you could continue to move forward out there you know and you could get into the rich - poor that you know The Four Agreements so you know the Think and Grow Rich you know just those four books right there I feel like our game changing for anybody after that's good order them books people so we come into the clothes for this of episode of a celebrate the great guys but I hope you got a lot of value I know I wish I could be sitting here taking notes but I'm gonna be rewatching this episode as as well as I know you're probably gonna be doing the same with baggage that was delivered but again guys I want to say thank you so much for joining please tell me your website where they can actually review some of your old deals or some of your projects you got going on okay so everybody you could go to my website www.jponelife.com and never if he ever get done this course program training I'll plug that in the show notes below as well just so you're able to be able to skip some steps but guys I'm gonna thank you once again for tuning in to another episode of accelerate the great all I'm asking you to do right now rate it review it share it this is the information I want to put out to the world for free and my awesome main goal is to help people like you accelerates a great and build that six seven eight and I figure business that you desire into bill in gain that financial freedom so thank you again for tuning in for another episode of accelerate the great and I'll see you on the next episode see you

Channel: Nehemiah Davis

Views: 2,891

Rating: 5 out of 5

Keywords: nehemiah davis, circle of greatness, neo davis, coga, step into greatness, step into your greatness, entrepreneur, nehemiah davis step into greatness, nehemiah davis step into your greatness, nehemiah davis foundation, nehemiah davis circle of greatness, Broke college Kid to millions earned in real estate, Pat Jeune, Broke college Kid to millions

Id: FLMaj_5K3-k

Length: 25min 42sec (1542 seconds)

Published: Wed Feb 27 2019