Building your real estate empire with Doug Depte Pt 2 - Episode 90

welcome back to another episode of accelerate the great i'm your host nehemiah davis and listen i told you guys we're not playing with season two i'm bringing the big hitters on season two i'm bringing all game changers on season two i'm bringing on some of your favorite internet entrepreneurs some of your favorite investors and we're going to make sure we change lives and give keys that help people build generational wealth and create money literally literally create money right so one of our number one requested episodes to bring back for part two uh was doug depp so i said man let me he's in town let me bring him back on the podcast so he can spit some more that real estate talk to everybody on here so without further ado i hope you guys get a pen get a piece of paper because on this podcast i'm about to dig in and uh get a whole lot of questions answered pertaining to real estate to further help you build generational wealth right so without further ado welcome back once again to accelerate the great let's get to it doug that what it do my guy hey man i'm just happy to be here thanks for having me man i'm just so excited for this episode let's get it hey let's just another uh beautiful day so listen man um we talk about it often we talk about how real estate is the number one subscription business in the world we were walking around um and we was just analyzing a bunch of buildings and we realized that all of them were paying rent or owned by somebody who was generating income so why should people get into real estate now should they wait because i hear a lot of times people say is should i be waiting when is the perfect time to get started in real estate yo listen listen the time is now no matter what people tell you no matter if the economy's up down sideways it doesn't matter now's the time to get into real estate simply because everyone needs a place to live right that's been proven ever since you know the early biblical days right everyone needs food and shelter yep so if you could be in that position to provide people with shelter and being that number one subscription business in the world why not be in it right so i know on our last podcast we touched on your story i don't want to spend too much time going back on it but how important is it having the right people in the corner if if you listen to the last podcast doug gave his old girlfriend a two weeks notice because she wasn't down with the vision she was okay with being poor so how important is it to have the right people in your vision and how do you convince your wife your husband your spouse or other people around you to get on the the the mindset of building wealth and buying real estate like if they've never done it before how do you i heard you talk about how janiece and aaron yeah she didn't uh he didn't she didn't want him to do your ride along and she ended up letting him do it and now she's more into real estate than him in the last year they bought five or six properties so how do you convince somebody who've never done it before like yo this is what we need to be doing hey listen i think what it comes down to is i see far too often couples you know one cup one couple would go ahead and bring it to their spouse and they say you know what i want to get into real estate great but then they don't see any action they go back you know from working to nine to five they go sit on the couch and they watch lebron work right they watch kobe bryant or whoever is working right they watch these tv shows power what have you but they don't put any action toward that goal that just told their spouse so imagine if i would have told my wife larissa hey i want to get into real estate but after i came home from that nine to five from hugging that cubicle i'm going to my i'm going to my uh you know couch and just watching tv right she's not going to believe in the dream if i'm not putting that action putting that hard work toward getting to what it is that i'm looking to get to so if it's real estate i need to be looking at properties i need to be research i need to be making calls right so you have to lead with the work you have to lead with the action you know talk is cheap as the saying goes right so often people just want to talk about their dreams talk about what they're going to get what they're going to do right but you need to show you need to show not tell um you know what's so funny on my uh if you're listening to this right now you you're probably gonna hear yo i'm releasing my first album no i'm not a rapper no i'm not an athlete no one needs no one even knows about this yet but on one of the tracks i just talked about my grandma and and i'm super pumped up to re release my first motivational uh album it's gonna be crazy but what what's so crazy to me is um my grandma i loved her more than anybody in the world right guy wrestler so she passed away a little less than a year ago i've been to 55 countries y'all but prior to that my grandma will always tell me son don't go there it's dangerous son don't do that um don't travel don't do this you shouldn't go to mexico i heard it's bad and the problem with so many people is they end up listening to their mom their husband their grandma their spouse like i almost did and guess what i would have deprived myself of going to 55 countries right now i got a business in philippines with 20 staff members in philippines and i wouldn't have had that business right now if i would have never went to philippines right you know we got a whole automated business there right that i wouldn't even have had right now if i wouldn't have went i wouldn't have went to dubai i wouldn't have rode a camera i wouldn't have went swimming with whale sharks i wouldn't have pet lions in africa uh pet tigers in thailand like some of the most incredible experiences i ever had in my life resulted in me getting on the plane getting uncomfortable and doing something new right so there's a lot of people right now who's gonna try to talk you out of whatever your goals may be and oftentimes you listen but what you got to start asking yourself is is this individual who's giving me this advice do they do what i'm looking to do right you know how many times i hear real estate bro don't rent the section 8 is bad oh man listen how many times have you heard that bro and they in hey when i was he said she say stories crazy crazy when i was getting started that was the number one thing they're going to tear up your property right that's what insurance is for that's what screening tenants is for right oh they're not going to pay you that's why you have different agencies you can tap into you could tap into veterans you could tap into homeless housing right you could tap into section 8 and get your paycheck every 30 days but a lot of times like you said people are just listening to people that haven't been where you're trying to go so when it comes to you know looking at your goals and where you're trying to go you have to listen to people that have been there before right because oftentimes it's the people that are close to us they just want to protect us so people often go to their their mom their dad and ask for advice right but their mom or dad might not have any idea they might been hugging that cubicle to that 67 and a half mark right so how are you going to talk about entrepreneurship real estate and freedom and mobility with someone that doesn't currently have their freedom of mobility wow that's heavy i always tell people this like yo you want to be an entrepreneur don't go asking your co-worker if it's a good idea it will never be a good idea especially to someone who operates with a scarcity mindset we've been conditioned so far along to operate with scarcity we don't think about abundance we don't think about what's possible we don't think about where we could go so what we end up doing is we end up staying exactly where we are instead of us living our life right and i tell people this i need anyone listening and understand this this ain't no rehearsal some people are under the impression that i think you get to come back and try this life thing again right you get a second chance no there are no second chances oh you listen so if you're listening to this you better start living your life up right now so look we were talking about the other day we were talking literally about um what most people don't understand and i don't think you got to get a real taste of freedom and mobility to really see what it what it feels like it ain't even about money at this point the freedom and mobility of being able to get up and go hey tomorrow we got to go to mexico all right bet we out going we out that that you can't you can't put a price on that right so what i wanted to uh you you can't put a price on that so the first thing i need you guys to identify and we talked about this a lot of you or people in general i want to make 10k of money i want to make 20k i want to make 150 30. whatever the number is your first goal should be making enough to replace your job income right so i want you to talk about two things i want you to talk about you know the four by four the play where before you get married to help somebody go ahead and get financially free because we understand the two things that separates most marriages are finances and infidelity so if you can eliminate the finances piece man so i want you to i wanted you to quickly talk about how somebody could get free and then getting your freedom back you always talk about that freedom number yeah so what is that talk a little bit about that so so let's go ahead and talk about the triple four i call it right so the triple four is for those people that have a significant other might not be married yet right so there's a program called the fha loan program where you only have to put three and a half percent down so three and a half percent of the total loan amount the purchase price of the property you put that down you can buy anywhere between a single family unit all the way up to a four unit building so let's say you go ahead and you purchase that four unit building you live in one of the units you rent out the other three you live for free right but now your significant other what if they go ahead and use that same fha program and purchase themselves a four unit building so now they put down three and a half percent they're also living for free and they have three three other tenants right in that same building so now combined you guys have four plus four eight units all together but then guess what happens when you go ahead and get married take that next step you guys can go ahead and get another fha loan because your situation has changed your situation has changed so now you go to the lender and say hey i need another fha loan put your three and a half percent down grab another four plex right might have to be uncomfortable might be in a two-bedroom apartment while you're just getting started right but now if you're able to make this sacrifice and this commitment you'll be in a situation to go ahead and have 12 units combined so i call that the triple 4 play so that's why it's so important to have be on board with someone that's willing to take that leap with you take those steps because it's very simple once you cover your overhead and you know the biggest people's overhead is a place to live right next is going to be food car expense and if they have any college debt but this is going to help you guys get out of debt a lot sooner and it's going to help you live in a situation where you can take that extra savings and that extra money the key is don't go ahead and increase your lifestyle increase your spending because you'll be in a situation where you have to hug that cubicle right the idea is to not have to hug that cubicle to your 67 and a half and get out of the rat race as soon as pos as possible because that's going to allow you to to uh grab your passion that much sooner right and if you like working a nine-to-five great but once you have that taste of that freedom there's nothing else like it right where you can wake up you can make your own hours you can work when you want to work collect your rent checks and keep it moving but that's that triple four play that everyone needs to tap into how soon can they do this play they can do that play right now what what's some things they need what is that two they need uh they need two years tax returns two years tax returns bank statement ww2 uh two months of bank statements at least a 580 credit score to put three and a half percent down but there's some people like oh my credit is bad yo you can have you can have a 500 to 579 credit score and instead of putting three and a half percent down you can still run the same play but you have to put down 10 percent right so there so no no longer people should be able to use i don't have credit right even at the low credit at 500 520 you can still get into the game but the name is to live for free once you're able to live for free once i was able to live for free things started to change i started to increase my my cash flow on the monthly basis so then i could dump that extra cash flow right back into more investment assets right that's the mindset we have to have so how do you develop that mindset you you from the hood right you from the hood you you've been watching your friends around you blow money on clothes blow money on depreciation depreciating assets they have never made any investments but now you want to have some sort of life change how what would you tell somebody who's trying to switch their mindset from spending all of their money on liabilities to trying to move the assets how do you tell somebody how do you start saving more money to buy more investments what would you tell that individual who black man because they're around people like who's not possibly encouraging them to do better yeah they're around people like yo let's go buy the chanel bag let's go let's go by the uh the balenciagas so what do you tell people i think what people have to do is they have to read books right and you have to start to eliminate some of your friends eliminate some of your circle so basically your friends can either take you up or take you down so you have to be open to knowing hey is this person in my life taking me up or if they take me down but i would definitely recommend the book that my dad gave me back when i was in seventh grade called the richest man in babylon and that book talks she talks to you about how to respect money and once you're able to respect money and know that money is a tool to go ahead and make you more money to buy you more freedom buy you more things then that's when you start to respect money but i think it really just comes down to the fact that you have to understand how money works once you understand how money works and then it's like okay i could put a thousand dollars on these balenciagas or i know that i only need eight thousand dollars to buy a house so why don't i put this thousand dollars away in the account and then i just need seven thousand dollars more than i could buy my next asset but i won't be fresh though bro people wanna be what about being fresh hey listen you gotta put you gotta put being fresh on hold you just gotta put it on hold like do you wanna be fresh and broke like you know and hugging that cubicle to your six seven and a half or do you want to have your financial freedom a lot sooner at 30 years old and then after 30 and so forth if you have all this extra surplus of cash flow go ahead and get fresh then but being fresh has to be delayed you know another thing i i'll be telling people this you know how how i used to calculate my purchases and i think this is good for somebody yeah how i want you to begin to calculate your purchases don't look at balenciagas as a thousand right i want you to look at it as however much you make an hour so i make i'm not a mathematician so i'm gonna say it's five twenties in in a hundred so that mean i wanna say that's it's 50 50 hours so if you make 20 an hour and you're gonna go buy a pair of sneaks for a thousand yeah you didn't pay a thousand you just gave 50 hours to purchase this product 50 hours of your life of your life that you can't get back nope so you got to really start asking yourself is this purchase worth 50 hours now granted guys and i ain't gonna be for years i've never bought anything designer forever this might be my first year actually buying designer yeah right but when i'm buying it it don't it doesn't affect me it's not like oh crap i gotta think about it where oh crap it cost me 50 hours my last job 1500 a month i just gave away my entire month to do that and i was the guy who was buying the true religion jeans i was the guy buying the rocking republics i was charging them on my grandma nordstrom credit card taking two years to pay for them i paid double for the jeans with interest and that's what our community do oftentimes we spend so much money on getting fresh that and not only getting fresh also when it comes to christmas and i don't even want to hurt anybody feelings but on our podcast i'm making sure i'm helping people become wealthy every year what happens we buy our kids everything that they need we got them the freshest like they all of that they got all the toys like they laid out yeah and then the next 30 days and and i know all of them toys that you bought they thrown under the bed somewhere there in the basement nowhere so what you just did you worked that entire month to provide that christmas now you're in debt for the next year now the cycle continues i'm trying to make sure that if you listen to this and anybody rock with me i'm trying to break generational curses the cycle must end poverty must end poor spending habits must end not owning assets must end not being able to you know live life on your terms must end so it's very important if you guys are listening to me start analyzing your purchases will this purchase help me generate more income will this purchase help me grow will this purchase put me in rooms with people who can make me better will this purchase help me level up and if it will not i need you guys to go on on a diet financially for the next one year and only focus on things that are going to allow you to grow only focus on things that are going to allow you to get better because that's going to be a major key to you truly leveling up is because guys once you get control of your finances it is game over you could do anything now because now you are you're financially literate you know how credit work and now you're able to just just win and then of course get real estate because it ain't going nowhere somebody said yo buy the earth because it's not going anywhere facts facts man that financial control is serious financial control is serious and the reason why it's so serious because let's say for instance as you have that cash flow coming in if you don't have that financial discipline that extra thousand dollars a month that extra five thousand dollars a month extra ten thousand dollars a month can easily be spent on foolish things but it's very important you know you're going to see a lot of money in real estate to reinvest the bag continue to buy more assets because every asset that i see is like a actual retirement bucket oh let's talk about yeah let's get into that so listen right i was talking with several people in in in your pension ideally your pension i was talking to one of my mentors and he was telling me i was talking to one of my mentors and he was telling me man when i retire my pension is going to be like two grand and three grand a month so you get two to three grand a month but before i retire i got another six seven years that i gotta go put in so most people are working right now and guys let me be very clear i'm not talking down on jobs because i got 20 30 people on my team i'm not talking down on job let me be very clear with that but i i'm just trying to make you aware of what's possible out here and just trying to give you a a new look on life so one of my uh people like yeah i'm gonna make two to three grand a month you know but i gotta still work another seven years i'm like another seven years is something that you hate doing one i don't think is worth it but the second thing is most people are saying hey fine it's good here's the 40 40 40 plan i want you guys to understand this the 40 40 40 plan is this find you a good job work the good job for 40 hours a week worth the good job for the next 40 years of your life because generally when you find that good job you're around 21 you're around 25 so you work the next 40 years of your life until you're 65 and then they say retire on 40 of your income here's the problem with that doug most people can't retire on 40 on 100 of their income because of lack of financial literacy right so 40 of their income that's not even a question right so we're working until we're 65 to make sure we're securing two to three grand a month i don't even know what a good pension pays but i don't care if it was four grand a month let's give them a triplex play or a couple property play to so they can you only need a couple of these to replace your pension let's talk about that as you talk about retirement buckets absolutely absolutely so uh so let's just talk about one of the properties so my wife when i we got before we got married i didn't have any my wife didn't have any real estate had a bunch of real estate right so i said let's go ahead and get you in the game so she used her fha loan which she purchased a 203k fha loan and this is a property we picked up for 90 000 right construction on this was sixty thousand dollars and we could all roll that construction all within that same 203k fha loan but this property right here we lived on the first floor two bedrooms and in the middle in the top unit we rented it out uh 850 850 right so we have seventeen hundred dollars coming in and the monthly note for that whole property is twelve hundred dollars so we're able to walk away with about six hundred was at six hundred dollars a month of cash flow while still living for free right we eventually moved out of that apartment and uh now we had another thousand dollars coming in so that's sixteen hundred dollars coming in but the play is why not buy a piece of real estate and as you're renting it out the tenant is going to pay that mortgage every single month so the tenant pay net mortgage every single month you're going to look up in 30 years and your that whole house is going to be paid for but during that whole 30 years you've been collecting that extra cash flow but then you're going to be at a situation where you own that asset free and clear with owning that asset free and clear you have a couple options you can either sell that asset right you can continue to rent it out and your cash flow is going to be a little bit increased because you no longer have to pay that mortgage as an expense or what i would recommend is you refinance that whole house put it on another 30-year mortgage and let's say that property is worth a hundred thousand dollars so now you just tapped in to 75 000 of cash tax free because they're taking 75 percent the bank's gonna take 75 of that 100 000 value asset and give you 75 000 then you just you know you're paying that mortgage for another 30 years but you're not paying it the tenant is so it's important to understand how real estate works and like for instance i focus on buying houses in the hood that need to be fixed up so i'm able to find these properties we'll get we could do one one easy deal uh in philadelphia on uber street right i found it for twenty seven thousand dollars on craigslist so i was searching craigslist where you find that you tell them where you find them i'm telling them exactly where i'm from craigslist people overlook craigslist but there's deals on craigslist every single day that's why i wake up at 4 30 in the morning to tap into these deals right so i got this deal for 27 000 it was a threes it's a three-story building but it's zoned as a single family so i knew that in that area they have tons of multi-family that's worth a lot of money so i said you know what let me go ahead and get with my attorney my zoning attorney we got that property zoned rezoned as a three family property so a three unit building and i had to pay seven thousand dollars to go through the whole zoning board we got approved for a three unit building but so you had thirty four thousand yeah yeah so yep somebody had thirty four thousand dollars yeah right yep and now since it got zoned as a three unit building now that's worth 650 thousand dollars fixed up wow right so what i'm gonna do is i'm gonna construct that building as a as a three unit as a three unit building i'm gonna go ahead and construct that building as a three unit building right so i'm gonna go ahead and get some financing some short-term financing to do the construction on this building the construction is gonna cost me about 250 000 right but i'm not it's not 250 thousand dollars coming out of my pocket i'm going to use leverage and get someone else to pay that tab but however since i learned how to be my own general contractor i'm going to actually get that work done for 175 000 right so what that means is that difference between that 250 that i'm getting from the lender for the construction and my true cost is 175. that extra 75 000 is actually going into my pocket as the general contract that's called a gc fee right so i'm putting that in my pocket but now once i finish that property each floor is going to run out for about twelve hundred dollars each unit so i'll be thirty six hundred dollars coming in right and keeping mind you that building's worth 650 thousand dollars so now since i have a tenant in that in that property i'll be able to go ahead and take that to the bank at 75 percent i can take a loan out for 75 percent of that value which is of 65 650 000 and it comes out to be about 487 000 for the loan um but then i get to put some extra money in my pocket because i only have to pay my short term lender you know 250 000 back for that construction that i borrowed so i'll be able to put an additional 100 100 000 back in my pocket so all all together that that package that that building is putting about 175 000 in my pocket just for finding that property on craigslist by searching early in the morning running the play knowing what to do with the lawyer getting it rezoned as a triplex and then constructing that building now renting it out and then i'll be able to get some additional cash out surplus we call it of an extra hundred thousand dollars so and that's tax-free which is a beautiful thing is why i love real estate so it's just being creative and knowing how to analyze analyze these deals is so important because oftentimes people see or people oftentimes people just want to get into real estate just to get into real estate and say hey i got a property but oftentimes people lose their shirt because they don't know if that's a good deal or a bad deal would make something a good deal or a bad deal like it's somebody right now man i'm about to go buy my first property yeah and you know so many people rush and just go by something that don't make sense yeah how are you analyzed if you telling somebody right now they never analyze the deal yeah and they want to figure out how to analyze a deal what's the steps yeah so you're buying something that's turnkey ready to go right then let's say you're buying something for uh 200 000 right i like something called a one percent rule so one percent rule is a nice quick easy way to see if you're going to be able to cash flow in a situation like this so if you're buying something that's turnkey ready to go for two hundred thousand dollars and we use the one percent rule what we're going to do is that 200 thousand dollars we're going gonna multiply that by one percent that comes out to be two thousand dollars so this means that the rent on that property needs to come in at two thousand dollars per month right and where do we go to find these rents we can go to a couple different places one way is go to rentometer.com that's rent r-e-n-t o the letter o and then meter m-e-t-e-r dot com right you type in that exact address putting the exact number of bedrooms it's going to give you it's going to spit out what that rent is for that area for where that property is located right it's going to give you a median a high rent a low rent so that way you can engage your calculations right away and this should only take you about two minutes right says rentometer.com there's another source called the fair market rents right so you can go right to google type in fmr rents and what you'll get is you'll get actual uh this is the fair market housing that that's a government site where it'll break everything down by zip code it'll break it by down by a one bedroom two bedrooms all the way up to eight bedrooms and it'll give you what that fair market rent is so now you can base your calculations off of that number so you run the one percent rule so if i was looking at this 200 000 property and the rent is 1500 in that area that's a bad deal off the jump it's not going to cash flow we're playing this game for cash flow we don't want to just buy a property and not cash flow and for those that don't understand what cash flow is it's where we're taking the revenue which is your rent we're deducting or subtracting our expenses some expenses could be your taxes your insurance your maintenance your vacancies and also your mortgage right so we subtract those expenses and that cash flow that number at the bottom has to be a positive number and what i like about real estate is simple math you know if you know how to do addition you know how to do subtraction you know you're ready to invest in real estate so that's one way that one percent rule but then there's another way that i go about buying properties that need a little work right and this is leveraging the burr strategy for those that don't know that's where we're buying a property under value we're going to rent that property out right assuming we're going to buy that property under value we're going to re-head that property once it's rehabbed we're going to get it stabilized and we're going to rent it out then we're going to refinance that property through a bank and once we refinance that property through a bank we're going to get our initial capital back right and then we're going to repeat that process and the reason why i like the burst strategy is simply because your money does not get depleted this way so your money is able to continue to cycle and you're able to run it through each and every time you buy an asset you run the money through you get that money right back and then some and the surplus keep doing that over and over again but what i use is the 65 rule so let me just break down how the 65 rule if i have a little bit of time so so yeah all right we're trying to educate the people you know our goal is to help as many people start businesses and buy real estate as possible that's why we got the podcast yeah i want to just help people win so go ahead break it down all right so to wait a 65 rule it works like this right so if we're buying something undervalued we need say the arv that's the after repair value the after repair value need to multiply that by 0.65 so that's 65 percent of the arv so if it's a hundred thousand dollar property once it's fixed up that means that puts us at sixty five thousand dollars but then on the other side of the equation so let's just think of an algebraic equation 0.65 times arv which is going to be the arv number equals the purchase price plus construction it's a very very easy formula i want to make sure everyone writes this down as listening all right so on the one side equation put .65 times arv right equals purchase plus construction so the reason why this is so important because let's say if we have a property and the purchase price is twenty thousand dollars and we know that the construction is coming in at forty thousand dollars right so that puts us at sixty thousand dollars we can solve for where we need the arv to come in at uh to be at .65 so let's say for instance that property is worth a hundred thousand dollars and you know that the purchase and construction is going to come in at 60 thousand dollars that means that we're actually five thousand dollars below where we uh actually we're five thousand dollars into green so we're in a great position right because our maximum is sixty five thousand dollars so like for instance that property is a hundred thousand dollars and once we time that .65 by 100 000 that means our cap is 65 000 so our purchase and our construction cannot exceed 65 000 no matter what right so we have to follow this guideline i have special calculators that i created so this makes the process a lot easier you're keying these key metrics and it'll spit out for you if it's a good deal or a bad deal right we try to keep this as simple as possible but it's so important even though it's simple right so now that you have this arv at 65 the reason why we want to keep it at 65 is simply because it's going to allow us to get out of the deal from a standpoint of when it comes time we fix up that property right we get it stabilized but then we want to get our initial capital back and the reason why we want to get our initial capital back because there's ways where you can buy this real estate right and you can use leverage you can use short-term funding to take care of the majority of the purchase as well as the construction 100 of the construction so right so use this short-term funding yes the interest rate's a little bit higher but when it comes on the back end once you have that property stabilized you can go ahead and refinance that property at 75 of the value that's why we want to be all in at 65 percent because then when we go to refinance it at 75 percent we're getting all of our initial capital back we're paying our short-term lenders back and we're going should have a cash surplus so now we start say if we start off with 10 000 we'll end the project maybe with 15 000 right so we're up some money and then we can roll that 15 000 into the next property but we're able to be in a position to receive that additional cash flow and this is how you truly scale your portfolio by using this strategy right here where you can go from one to 100 units very quickly simply by just doing this process over and over and over again and the beautiful thing is you can do this on a single family property a duplex a triplex a quad plex four unit a five unit building you can do this same property same uh process on a hundred unit building you can do it on a shopping mall people all all the time they'll buy these shopping malls that are undervalued right they'll get them fixed up they'll get some good anchor tenants increase their revenue and then they'll go ahead and get it all tented up refinance it but the refinance that cash out surplus might be an extra 10 million dollars 20 million dollars you're just dealing with bigger numbers but that if you don't know that's the burst strategy you just basically broke it down yeah yeah that's the burst strategy and that's one of the phenomenal strategies out here where you can literally scale your business because before when i was buying real estate i was going the old way where i was basically buying turnkey rentals and putting my 20 down and then i would wait about a year a year and a few months to get my initial investment back but the problem was this with that way was simply because i was you would run out of capital so i would only be capped at about three properties a year so i'll buy three properties and i have to wait a cycle to get those funds back before i was able to buy you know three more properties right so now with the burst strategy i'm able to put down 10 of the purchase price so if the purchase price is 50 000 and put down 10 percent that's 5 000 yes there's other closing costs associated with it so i'll probably need about ten thousand dollars put down but then the lenders that i use will cover ninety percent of the purchase the other remaining ninety percent of the purchase plus a hundred percent of the construction so now i'm in a position where i can continue running this play spread it out over multiple projects and get and be able to scale up that much faster so now i could do five to seven properties at a time run that through the cycle grab another five seven properties at a time and keep running through the cycle and as i run through the cycle picking up those assets picking up that cash flow which then gives us more freedom and more mobility so i want everybody to write down if if you're if you're cash flowing anywhere from 200 to 400 a property how many of them do you need how many doors do you need to replace your job income that's the equation right there how many doors do you need to replace your job income if you make a thousand dollars a month and if your cash flow flowing 300 you need three doors a month if you're making two thousand dollars a month in your cash flowing 400 per door that's 4 8 12 16 you need five doors a month so basically just analyze how many you need and start really working and chipping towards that right and that's going to get you guys one step closer to becoming financially free through real estate and the benefit of real estate i'm gonna be honest with you guys i'm a little upset right um we having these conversations about taxes and stuff and i don't really hear doug really talking about the taxes like i don't like i'm like bro i gotta pay a whole lot of taxes bro yeah and i rat son that struck me to the core yeah it said if you weren't about taxes you don't own enough real estate i'm telling them i felt that i'm like i'm talking about i it was like a punch in the like bruce lee karate kicked me a son i'm like ooh so just know my next 12 months i'm about to really go harder on real estate just owner more ownership right yeah um simply because one i want to reduce tax liability 100 but i always think about the family i heard doug say the other night um and i don't know he probably gonna write this in the trust or will right and it's basically this once you pass down the houses to the kids in the rule book you can't sell them number one rule number one rule never sell the bricks and uh his number one two his number two rule is always remember the first rule that's it that's it yeah why is that important bro it's so important because that's your assets right that's your you know those those bricks they actually produce cash every single 30 days right so that's your generator that's your engine that's like having a car and you take out the engine but you still expect the car to work wow right so so these houses are your engine and by you selling the assets you're eliminating you're cutting off your earning potential your income stream right so that's why that's why it's important to never sell the real estate simply because your family you can pass the portfolio down to your family and even if they don't run the business you can have you know different managers in place to run the business but it's going to be turning out additional cash flow for your family forever right and even when people talk about yo dog why don't you just get into flipping why would i flip when i why would i put all that energy into one property right i find the property i negotiate the property i get the funding for the property i fixed up the property right just to sell it and make a quick couple of dollars but by the time say if i was expecting a forty thousand dollar profit i'd be getting put myself in in a situation that the pay capital gains tax we could be about thirty 40 percent right i have to pay the commissions to the realtor which is about six percent of that price right i got to pay transfer tax all this good stuff so that that that 40 000 cash out starts to dwindling down to maybe twenty three thousand dollars why do that when i could simply run the play and run the play in a situation where i'll be able to get that cash back through the cash out surplus by taking that undervalued property analyzing that deal correctly and then go ahead and put a long-term loan on it get my initial investment back plus additional capital on top of that so that's the beauty of knowing how to play the game of real estate because again that cash out surplus is tax-free but in addition to to what neo was saying the reason why people that own real estate aren't worried about taxes because the beautiful thing called depreciation bergadel all right so with depreciation uh the tax code is the u.s tax code right i'm not making it up where you can take an asset in real estate and you can depreciate that asset so basically you take say you have a million dollar asset right you have a million dollars a worth of real estate they what they do is you divide that by 27 and a half so you divide that by 27 and a half right that's 27 and a half years okay so now what the tax code is saying that you can reduce your taxable income by that amount every year right so that's 36 000 every year so if you make a hundred thousand dollars you would reduce your taxable income by 36 000 so now you're only paying let's do the math on that now you would only be paying taxes on 63 000 even though you just appreciated that other amount right but then let's take it a step further for the guys that want to get a little creative and want to accelerate that depreciation there's something called cost segregation so now you can go ahead and get in get that same property that's a million dollars right you can hire somebody to analyze and pick apart and do cost segregation for your property so now what they will be looking at the heater system so they say okay this heater system is good for four years and it's valued at thirty thousand dollars so instead of spreading that thirty thousand dollars over twenty seven and a half years they'll spread it over 40 years right so now you can deduct 7 500 that year just for your heater systems for the next four years right they also will look at your roof like okay this roof is good for another five years and this is about a this roof is worth about a hundred thousand dollars of the property now they divide that by five so that's another twenty thousand dollar deduction right they're looking at your floors are these floors are only good for another two years so and looking at the appliances there's about twenty thousand dollars with appliances their deduct net down so that's called the accelerated depreciation and a good accountant would be able to take that million dollars and they would basically do that cost segregation and might be able to spread that out over three or four years so imagine taking a million dollars dividing that by three now you're reducing your taxable income by 333 000 each year for the next three years right so if you just if you have a taxable income of 333 thousand dollars but you have a million dollars worth of real estate you do cost segregation now you just wiped out your tax liability your tax burden that you would have been paying on that 333 000 of earned income you'd be wiping it out to zero whoo that's why i'm so mad i don't own enough real estate that's a problem listen if you know you know so that's why that's why it's so important that it won't happen again right right why is mentorship important bro because hey listen mentorship is so important because i've been i've been focusing on real estate actually probably for the fat class if you count all the years of reading books and just getting ready it might be 12 14 years but actively invest in real estate been about 10 years right but during that time i made so many mistakes because i was learning the hard way i was i was literally didn't have anyone to really talk to to learn the game with i was always the trailblazer so i was the person that i would i would go through with my machete cut that path passageway right but then i would try to pull people through the path so that way they could follow my footsteps i tried i mean i talked about real estate with every single person that i came in contact with but by having a mentorship you'd be able to have the fast pass but you talked to a lot of people you did they take your advice or man probably out of a thousand people that i talked to maybe about five if that one of them grimes one of them grimes and he did i think 250 units in the last three years serious right so the thing is with mentorship you're going to be able to avoid the many mistakes that i've made along the way right but those mistakes made me stronger but i'm the type of person i'd rather now that i know i'd rather learn from somebody else's mistakes than having to go through them myself so by having that mentorship is getting a fast pass the other day um larissa and i we went to six flags we took her little brother to six flags and it was during fright night all day cold it was a little chilly it was definitely a little chilly yeah ooh yeah it is it was the evening time too right got it but we were waiting in line then we noticed there's some people that just walking right up to the front hopping right on going on about their day i said what's going on here we waiting in line i only rode two rides and we were there for four hours wow you rolled two rides for four hours four hours right right but if i had that fast pass i'm guarantee you i probably could have got about 15 to 20 rides in that same amount of time so mentorship is like having that fast pass and not taking on mentorship is like being in that line and only getting a ride two rides in four years or four hours but why would i get mentorship if i could figure it out on my own i could take five years of my life and go figure i think you you've been actively investing in real estate 10 years you've been doing in this game about 12. yeah so pretty much you're saying you're able to give me all your advice all your mistakes everything you went through and i'm able to do deals a lot quicker right yeah but there are still people operating with a scarcity mindset like i don't know i could figure all of this out on my own oh yeah what about what about them people hey listen you can go on google you can go on uh youtube and so forth and try to piece this thing together yeah but believe me you need some mentorship simply because real estate you can lose your shirt in real estate you're dealing with you're not just dealing with a hundred dollars fifty dollars ten dollars you're dealing with thousands and thousands of dollars right you're dealing with loans you're dealing with credit you're dealing with banks right so you need to know how to play the game but play the game correctly because you can be in a situation like i was where i had a hundred thousand dollars tied up tell me about that so because i don't know if most people couldn't withstand what you had to endure i hear people talk about they invested three grand and went wrong they quit entrepreneurs right bro right you know me so talk about that so so at the time uh before this this experience i was buying properties all ready to go basically turnkey and coatesville just had to put some paint on the walls and um buying them for sixty thousand dollars keeping it moving but i wanted to take it the next step further so when i started investing in philadelphia i ran into a person and they sold me a shell and a shell for those that don't know this house was you walk in the door all the floor joists are down falling into the basement the roof you can see right through the roof i mean it was absolutely crazy nothing like i ever seen before but i'm always about taking calculated risk and taking and i wanted to get to that next level so i was like well look let's go ahead and run this play so i purchased it for 25 000 and the gentleman said you know if you got the cash just go ahead and just we just go all cash on this property and i was going against my principles i was like i know i know i'm a financial analyst i know the the value of using leverage and opm other people's money i said all right you know i got the money in the account let's go ahead and just give it a whirl because i'm looking to take that that next adventurous step so i go ahead i buy the property 25 000 we get title insurance on it and um the construction is 75 000 for this property now mind you that construction budget was extremely low it's basically new construction for this uh this property in north philadelphia so we go ahead and the contractor you know i'm paying him paid him some money he did the demo extremely fast something like i never ever seen before that i mean they had the dumpsters they're ripping everything out i was there with my dad right so we're ripping everything out throwing it throwing it in the trash threw the whole house away in these in these dumpsters so then i was like man he's rolling rolling he's like hey doug we're rolling we're rolling we're getting the framing done so he's like yo we need some more money boom i cashed him out he's like yo yo we rolling we got some electric going in so he said yo we just need more money we got to keep these guys rolling keep these guys rolling i looked up the whole 75 000 is basically gone and we talking about cash i mean i was going i had to call separate banks because you could only take out but so much money from banks like yo you hitting us like the five thousand we don't have five thousand dollars so i'm going from bank to bank to bank they put up this these cash deposits to give to this this man but uh but then things started to slow down once he had the bread and i was like yo what's going on what's going on my project oh doug yeah man you're not gonna believe it you're not gonna believe it you know it's big tank weekend i said who the heck is big tank and what does he have to do with my project big tank who yeah yeah i mean he said big tank hill and then i'm like next thing i'm calling yo what's going on like there's nothing getting done in my project the pope was in town the pope what's the pope doing in north philly isn't he supposed to be in italy right so then it's like oh it's my birthday it's my son's birthday my wife's birthday my daughter's birthday my cousin's birthday my mom's birthday yo what's going on here right so i literally got to see the whole construction process for two years in slow motion right i'm talking about extremely slow motion i mean people are like man it's like watching paint dry for years right so it's like paint drive for years so it's a situation where um i say you know what i'm never putting myself in that situation again i need full control of my projects because i'll never have to rely on another man to put my projects together right i never want to be put in that situation it's almost like hugging that cubicle i never wanted to be in that situation where i got to rely on someone else to get bonuses someone else to put food on my table right i know what i know and i don't want to cut you off i just want everybody to write this down at some point in time if you give somebody the ability to feed you they also have the ability to starve you i want you to really understand i want you to write that down and let it resonate if you give somebody the ability to feed you they also have the ability to starve you go ahead yeah that's powerful right there so that's that was my main motivation to wanting to be my own contractor because i didn't have to be in a situation where you put all this money out and someone just you got to follow up with them i mean i thought about i was like man this guy has a hundred thousand dollars of mine tied up in this rinky-dink two-bedroom uh house row home in north philadelphia right so i could easily fold it i could have easily gave up on real estate completely i could have easily just walked away and said hey that real estate's not for me i could have walked my tail between my legs and went and just hugged that cubicle for nine to five for dear life for the next 40 years of my life but i decided not to i just said yo i'm going to keep buying real estate and i had to find some alternative ways to go about buying real estate i started getting creative and start using credit cards to purchase real estate balance transfers to purchase real estate walk us through that how you do that how you how you you basically buying a crib with a check listen yeah so let me hear that yeah so so and you teach all of this too yeah yeah of course of course i get i get the game man listen because hey i gotta say something though cause i i don't know if people really get i'm gonna keep it all the way real with y'all yeah this is probably our 90th episode you can't go on my podcast and not get something off of every episode that will drastically change your income in your position if you apply the problem that i have with people doug is information only changes situations with implementation they hear it over and over again you need to own this you need to do that right but for some reason we never take action i hope if you're listening to this podcast as we're transitioning into 2021 right and if you're listening to it right now it might be 2021. make a point right and i need you to dm me right and and say i promise matter of fact don't dm me because it'll be crazy just comment on my instagram that neil de vista i promise i'm gonna take action and i'm gonna make this my best year yet because i'm getting tired of hearing people talk about it you talking about what you're gonna do you keep saying what you're gonna do but you never go out here and make it happen how many times are you keep waiting if 2020 didn't teach me anything else i ain't waiting to do nothing nope you see why i went my dream cars i said man people checking out every day listen if it happened to me i'm gonna be upset that i don't live my life to my full potential i'm not gonna keep living my life uh not to my full potential i'm not gonna keep living life as if this is a rehearsal so if y'all listening to me please hear the information that doug is breaking down to you go get in the game go buy you a piece of property go invest in real estate go put something in your kid name get them do something with this information because guys this information i'm pretty sure it costs thousands and i'm you're getting a whole lot of game right here but yeah break down the balance of balance but how if somebody listening how can they get mentorship from you what y'all got going on real quick and then we jump back in yeah yeah for sure for sure so what you what you could do is you can go to uh the real estate wealth book real estatewealthbook.com that's the way that's that new work that's that's the new work right there yeah yeah that's my first time you've been dropping this right here but that's where you're going to have the 14 steps to go about acquiring your next investment property your first or next investment property but what i also included was the 21 mistakes right so the reason why the 21 mistakes is so important because you're going to literally have a list of my top 21 mistakes that i've made so that way you can avoid these costly mistakes and make your transition to buying that first and next real estate property that much easier because it's almost like you had the roadmap map was telling you exactly where the potholes are in the road so hey switch lanes go to the left lane there's a huge pothole that can wipe you out right so that's that's going to be a beautiful thing so you definitely could tap in with that i also offer on my instagram at doug depp d-o-u-g-d-e-p-t-e tons and tons of video content there's hours out i haven't added up all the hours but it might be almost 10 hours worth of game that you can literally tap into from a real estate standpoint as well as my youtube and then there's another one execute with doug execute with doug.com where you can also uh tap in but and guys i'm going to tell y'all something because i i convinced this dude and i guess um this will be out at some point yeah i'm like bro give a house away um oh you weren't supposed to tell them i know yeah like it's so funny y'all so i always talk about repurposing and like always just maxing out your content so some people right now you're on instagram i'm on instagram while i'm doing this so this episode probably won't come out for weeks um and all of this stuff that he got together will be done but giving away a crib y'all yeah giving away a crib which is going to be crazy so i'm looking for i know it's supposed to be a little secret yeah yeah but yeah we going to give a house away man somebody needs an asset yeah someone needs an asset so so yeah let's go let's switch gears bro let's go ahead and talk about the balance uh transfer play yeah cause i know you helped a whole lot of people with that move and yeah it helped a lot of people yeah because they just don't know if you don't know you don't know hey listen listen so with the balanced transfers i always been a big component or a big advocate of having as many credit cards as possible if it's personal as well as business credit cards people like yo if you have a credit card chop it up never use it right i'm all about opm and having access to lines of credit so instead of me going out and raising a hundred thousand dollars i'll rather spend one night in front of the computer and raise 50 to 100 000 right through credit cards so with having this stack of credit cards you know people always get these things in the mail right they look like little blank checks from credit card companies most people probably about 99.9 percent of the people that go ahead and put those things in the shredder they rip them up a million pieces they throw them away but i said you know i'm low on my cash i just gave this man a hundred thousand dollars of my actual hard-earned cash right that i've been working for and i said you know what i want to buy a house with one of these checks right they're coming to my door i open them up they say zero percent interest for for uh 16 months usually anywhere between 12 to 16 months at the time these were for 16 months right and then i'm looking at the uh i'm looking at the check i was like wow i could just write this check out to myself so i wrote it out to myself 20 dollar check cashed it it was in my account within two to three days right and there's this property i was buying in coatesville at the time for twenty five thousand dollars so i used another balance transfer check to cover uh the remaining cost of buying that property as well as fixing it up so now i got a whole asset i fixed it up all on this balance transfer check with this balance transfer check you know once i got attended it you know i got to pay back the credit card company because basically and the reason take a step back the reason why these credit card these credit card companies give you balanced transfer checks is because it's a way where they can cannibalize business from their competitors so let's say for instance you have jp morgan over here you got bank of america bank of america sends um balanced transfer checks to these jp say if you got a new card with bank of america so bank of america sends you a balanced transfer check because they want you to take your balance that you might have with jp morgan and transfer it over to bank of america yes they'll give you that teaser rate for that 12 to 16 months no interest zero percent interest because after that zero percent interest wears out they're banking on the fact that you'll continue to pay bank of america instead of jp morgan that's the way bank of america is going to be able to steal customers from jp morgan right so that's the whole principle of it but me being in the in the finance world i used to work at bank of america and so forth so i understand how credit cards work how balanced transfers work so i said you know i'm gonna write this check out to myself got the checks then i'm purchasing this real estate all through the credit card so once it's tenanted i took that same property to a small bank out in coatesville right coachella savings bank and they were able to refine or they're able to put a mortgage on that property so i took those funds that they gave me for the mortgage and i paid off those credit cards so now those credit cards are back to zero balance right but mind you i did that whole process in about three months and i got actually a cash surplus of fifteen thousand dollars but i did that in three months right so these balance transfers were good for 16 months so i still had another 13 months to tap in and use the the access to these to these cards at zero percent interest so then what did i do i grabbed another property right and i kept doing this over and over again and once i got close to that deadline when that 16 months was rounding out made sure i did the cash out refinance paid those cards off then i just go ahead and get a new card new set of cards so that way they can go ahead and give me that zero percent introductory rate again but also what happens is as you run through that balance transfer process and you end up paying those cards off that same company is going to send you new balance transfer checks so it's just crazy once you know how to play the game and you realize the importance of you know thinking outside the box right most people if you ask them hey can you buy a house on credit card they're going to say no way how could you buy a house on credit card right and it's something as simple as the fact that you know you just simply have to know how to how to play the game man it's it's wild out here it's wild no one would ever think you could just buy a crib with a credit card bro no zero percent interest too yeah zero percent interest and the reason why i also like credit cards because you're able to be in a situation where you're accumulating a massive amount of points and like me or about some points yeah yep so one of my favorite cards to use is this american express platinum card right you do have to have some you know pretty decent credit um but the way i use my american express credit card is is very unique so let's say for instance i'm buying a property that's undervalued and i'm using something called hard money a short-term loan a short-term loan like i talked about earlier is going to give me a large portion of the purchase price as a loan right plus they're going to give me 100 the construction but as i'm getting this construction done typically i have to go ahead and front the cost of that work so i'll put that cost of the work on my platinum card so let's say if i got a hundred thousand dollar project i'll float 25 000 on the card so once twenty five thousand dollars of work is complete then i'll call my lender to come take a look at the property they say okay you've done twenty five thousand dollars worth of work they'll wire that twenty five thousand dollars into my account now i take that twenty five thousand 000 and i pay off my american express card right but what i did was i just accumulated 25 000 points with american express then i can use those points to travel to eat my wife likes to go eat and i'm a very frugal guy so you know i'm like oh man we're going out to date night again then i figured out how to get the american express card to cover the date night and it's basically just for doing the cost of doing business right by me going up fixing up properties now we got date night twice three times a week all covered by american express we're able to travel because american express right we're able to book hotels and so forth because of these points that i'm accumulating and imagine if you're in a situation where you have um say 10 properties at 100 000 budget that's a million dollars that you're running through that amex card the american express card and american express takes notice like man this guy had a balance of 80 000 and he was able to pay it off so what they do they increase your amount so with increasing the amount you know i have i think i'm able to spend uh 225 000 it's probably more now because i've been running that card like crazy but i'm able to spend 225 000 at any given time on my amex card so that's that's just a massive amount of points so that's what i like about real estate is that you have to get creative right you got to think outside the box and that's what you know i'm here just breaking down this knowledge for you because so you guys can just kind of expand your mindset expand your thinking i don't know i don't know if i should keep going but you've been going off or should we just in this i think part two was crazy yeah um i think part two was crazy so um ah let me see let me see if i could pull another question or two from you man cause i i just want to really see people win so we talked a little bit about contractor we talked about section eight i know you just talked talk about how anybody can be approved for section eight some people think you gotta pay for that and uh and talk about the recent deal i think you got a tenant only gotta pay twenty five dollars a year yes talk about that because somebody can get off this call and go get at least a plot for section eight i mean to be able to accept it before you even own a property you guys you don't have to own a property to be able to would you say always you got to stay ready so you don't have to get ready talk a little bit about that yeah so definitely you got to stay ready before you have to get ready but yeah anybody so section 8 is available and all throughout the country no matter where you are you could be in beverly hills there's section 8 there's public assistance right there's got to go to your housing authority but you can become a landlord in the county that you want to invest in very simple just go to google type in your county's name and type in housing authority you know a section 8 landlord and you'll be able to see what the qualifications are but you can literally become a section 8 landlord in the matter of an hour or two right but now you'll be able to be on the payroll be on the government payroll and they haven't missed the payment to me in you know the pandemic they haven't missed the payment during uh you know government shutdown they haven't missed the payment during the recession so you haven't missed the payment yet i haven't missed the payment so so that's in the last 10 years from section the last 10 years from section 8. man so that's something every month on the 1st on the 5th uh a lot of times the the money actually doesn't hit the account to the third got it so right by the third guarantee guaranteed money's coming in and what you tell me it's a two-year lease yep so in philadelphia it's a two-year lease so you're locking them in for two years but uh yeah one of the properties that we just actually moved out of because again i don't sell the properties people are like yo doug you and your wife are moving to a new house like how can you just don't go ahead and sell that property why would i sell it i put it on section eight and we're renting that property for 14.75 and the tenant is only paying 25 a month so that 14.50 we're getting that straight from the government section 8 every 30 days and we have systems in place where the tenant pays that 25 electronically we're not going chasing her down or anything like that but the note the mortgage on that property is only 800 so now we're able to receive that cash flow and get that nice asset that we fixed up paid for by that tenant and now they're gonna cover that property all through you know for the next they're not going anywhere because where would you go to live at 25 a month i hear people talk about who they're what if they damage your property what if they damn people don't know that yo they're not you think somebody let me ask you this you think somebody who paying 25 a month is going to risk losing their section 8 voucher which you which is so hard to get right now right i don't you think somebody gonna do that definitely not why would they at 25 a month you're gonna be on your best behavior yeah literally i i don't want no smoke you talking about free what yeah so talk about a contractor place so a lot of people are under the impression when you talk about becoming your gc i think they think you and the crib actually literally ripping down beams slapping spackle up on the walls and i always like to tell people yo you got to get out of traditionalism thinking traditionalism thinking they had you in a box for the rest of your life bro talk about becoming a gc without lifting a hammer or no yeah let me just break down the place so being a general contractor is not as hard as you think but let me just give you a general contracting play right so let's say for instance let's focus let's just not even focus on doing a whole house let's just focus on a small topic of being a general contractor so let's say for instance we want to be a flooring general contractor right a flooring subcontractor so let's say um i found i have some floor guys that'll do floors at a dollar a square foot so they'll go ahead and install floors at a dollar a square foot right but in most markets the going rate for installing floors is anywhere between two to four dollars a square foot so what happens if you go ahead on craigslist you put out an ad and say hey i do floor installations at two dollars a square foot that's actually at the bottom of the market so people are going to contact you say hey i need floors installed right so what you do is you contract your your flooring sub right my flooring guys happen to be brazilian and they work at a dollar square foot so let's say you see if you see a job it's a thousand square feet you do the measurements so you give your guy a thousand dollars for doing that job right and you have the customer pay you half up front so you get a thousand dollars up front that thousand dollars is basically yours to cover the cost of doing that labor right and then once the floor is complete you get that other thousand dollars so the customer just gave you two thousand dollars for the install right so that install is two thousand dollars you charge them you give that your your uh your actual guy that doing the labor doing the work a thousand dollars you get to keep a thousand dollars right but imagine if you are able to do about 10 flooring jobs 10 flooring jobs a month right and the average flooring job might be a thousand square feet so that right there is ten thousand dollars that you'll be able to do just by g seeing that job just by making the calls putting the ad up on craigslist and saying hey i need you to come and do some floors for me right so that's ten thousand dollars as you can do by just doing ten jobs of floors which is very easy especially if you advertise in your county in your area right and you can scale up you can get imagine if you had two different crews that installed floors so now you might be able to do 20 jobs in a month with those two different crews so now instead of making ten thousand dollars you're making twenty thousand dollars a month simply by doing floors but hey we're not done there right imagine if you're able to find where to get the floors for the low right so i got a place i get these luxury vinyl floors for a dollar 75 a square foot home depot is selling them for about three dollars a square foot right so now you can sell them to the customer say hey i know home depot sells them for three dollars a square foot i can sell you these floors right here for 275 a square foot so i'll shave off a quarter for you customers are like oh wow you'll shave off a quarter for me great that's 15 or whatever on the savings so now you do 10 000 square feet of floors i think you're going too hard i'm going to all right no keep going all right keep blessing the people all right yeah that ball going crazy listen listen so you so you got so you just got so we're doing ten jobs right a thousand square feet so you just got ten thousand dollars from the labor but now if you're able to get a dollar on the material that's another ten thousand dollars so now you imagine just doing 10 jobs flooring jobs you got 10 000 coming in off the labor another 10 000 coming off the material that's 20 000 just for focusing in and zeroing in on doing floors floor installation all you're doing is running some ads you can run ads on instagram facebook craigslist you know just get it angie's list yeah i mean darn you can put out flyers in the neighborhood i do floors every flooring job you can stay put something right in the front yard get your floors done for the lowest in the city um right so now you have these floor jobs coming in making money on the material dial on the material dial on the labor 10 jobs 20 000. 20 thousand dollars times twelve that's two hundred and forty thousand dollars you could tap into just by simply getting good at saying hey what's the square footage of your the property you need to have a degree to do that no degree need to have a uh skill you not have to lay down floors you don't have to know how to lay down floors you probably i mean it'll be nice if you just watch a little youtube video maybe five minutes just so you have a simple understanding of the jargon but other than that all you need to do is just go find the guy that lays the floors down get them down and better best yet you're giving that floor guy that that much business that he's gonna lower his price he's gonna be like hey i'll do the install for you for 75 since you've been so good to me doug wow hey guys listen to this man part two was fire i told y'all i'm making sure i'm coming so crazy with season two giving y'all guys all the game that y'all need so i hope you guys really enjoyed this episode man this was absolutely game changing doug really broke down so much and again i know we're about to wrap it up i didn't even realize our producers just told us we've been running over an hour already on this particular episode i want to really give another 30 minutes but maybe we might do a part three but what i want y'all to do um if you're listening to this go to doug's page on instagram doug depp and on on his last comment just say podcast was fired this actually lets me know if you listen to the entire episode and again i heard him say it and he's crazy for it he's giving away a house at some point in time i think he said go to www.realestatewealthbook.com i guess more details are going to be on there um he's going to pick one of his mentees or students to be able to get a house and to apply for mentorship is execute with doug.com and guys when you go ahead and do it let me know if you do end up signing up or joining so i know i'm like yep that's from the podcast um but more importantly y'all make sure you take this information use it because this information is useless unless used i'm watching so many people's lives change as a result of doug's teachers i'm watching so many people level up right i'm watching all my peers who we run with literally run the plays that he's breaking down here so please utilize it if you like to leave anybody with any uh words of wisdom or any uh last words doug as we bring this to a close today i think the biggest thing is just don't give up right so don't give up and realize that the biggest room in the world is the room for improvement right the biggest room in the world is the room for improvement so keep going keep making it happen and let's get it let's get it y'all so again make make sure y'all continue to tap into accelerate the great we gonna keep bringing y'all the best and y'all i dropped the secret i'm dropping my uh i'm dropping my album y'all the road to greatness no one even knows about it yet but when we drop this thing 10 tracks i think it's 10 tracks the producers wrapping it up right now i cannot wait to share this with the world to really make make you win at the top of this year and uh with that being said i want to thank you all for tuning in um thank you for tapping in to accelerate the great and i hope you use this information to allow you to grow get to the next level and win so without further ado y'all your boy is out peace

Channel: Nehemiah Davis

Views: 4,386

Rating: 4.9633026 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, Accelerate 2 great, Accelerate 2 Great podcast, Building your real estate empire with Doug Depte Pt 2 - Episode 90, Doug Depte, Doug Depte real estate

Id: AythYnwFU6U

Length: 72min 30sec (4350 seconds)

Published: Wed Dec 23 2020