Millionaire Real Estate Secrets - Episode #99 w/ Doug Depte

how much real estate do you own now man so people always ask me that like what's the number right but i don't really scoreboard watching so what my answer is always it's not enough what's going on family david chans i want to give you a special invitation to the morning meetup themorningmeetup.com it is the only organization that gathers every single morning monday through friday 8 a.m eastern standard time to 9 a.m eastern standard time and we help you learn entrepreneurship grow as an entrepreneur become an entrepreneur or you just get to be in an environment a network of all entrepreneurs literally hundreds of entrepreneurs gather on a zoom call every single morning monday through friday okay so i want to give you a special invitation to help grow your business and your brand all this year okay every single day you eat every day for the for your health you brush your teeth every every day for your hygiene i need you to learn and grow every single day for your mindset okay so make sure you go to the morningmeetup.com it is only one dollar on trial you don't need a promo code just go one dollar the morningmeetup.com check it out if you like us stay if not after that it's 79 a month but i'm pretty sure you're gonna enjoy yourself okay so go to the morningmeetup.com i love you i'll see you in the morning the social cool podcast [Applause] streaming now on all platforms welcome to another edition of the social proof podcast where you find people who have social proof people who have built something yeah they can teach you how to build it and we have a very special guest that flew down did you come down just for the podcast i came down just for the podcast as well was the network kicking a guy in neo okay but the podcast was podcast is up there on the on the priority list you know what i'm saying well we got my brother doug that came through man um and i'll let you introduce yourself cause i got a whole bunch of questions for you bro all right cool cool cool so yeah my name's doug depp i'm in real estate so basically what i focus on is buying properties that are undervalued extremely undervalued fixing them up right slapping a tenant in there for the long term and really just you know doing that process over and over again right so i'm all about providing people with a shelter with a place to live and also teaching other people how to go about doing that i'm really about just health wealth and wisdom that's kind of like my motto that i live by so it's all about just spreading that information spreading that knowledge and really almost like doing god's work right providing people with the place over their head that they can live in for sure yeah so you from philly yep from philadelphia born and raised right outside of philadelphia actually so a place called blue bell like the suburbs of philly right so uh yeah bluebell pennsylvania bluebell pennsylvania is that word ice cream it's not wearing ice cream yeah a lot of people do mess that up so blue bell pennsylvania yes uh how was your home life like did y'all live in a house yup yup so we lived in the house both my parents thankfully all right my dad actually was in the record business so he was way back in philadelphia international with the ojs so he was actually president of philadelphia international records way back in the day yep so he was with them for a while so he owned a record label no he was the president of the record label he worked for gamble and gambling huff gotcha any like artists or songs we would know uh ain't no stopping us now [Music] oh wow yeah he's you know he's connected with pedi labelle all those no good people oh don't don't no dope yeah so um so y'all y'all was all right i was living we was cool like my dad did that back in his 20s like he was one of those guys that was getting to it earlier um however then you know that kind of fell apart then he had a business with dick gregory back in the day bohemian diet yup so he was in that regard but then as like as i started coming up getting older my parents worked from home but they worked on a business and i kind of um they lost a lot of money in the stock market but i had both my parents there my mom has a finance background my dad has a cpa background um but uh just being in that environment they taught me a lot of hard lessons and just just that work ethic pops used to wake me up at like 5 00 a.m in the morning to clean carpets like throughout the house right so when there was a little dark spot on the carpet i was in sitting there with a toothbrush some warm water scrubbing he used to wake me up now on the weekends i couldn't even tell you you were asking about your dad why was that why were you up there early to clean carpet spots like but the crazy part is now and i still wake up at like 4 30 in the morning almost every single day right and i'm always just grinding putting in that work so it really taught me that work ethic yeah he's like extremely frugal and i'm a i'm more of a frugal guy really really yeah oh but you picked up the little rollie today while he was in america hey listen my wife grabbed this for me so i was i was excited for that all right so walk me into how you got into real estate investing yeah so i went to the school germantown academy and this was a school where people are getting high school college this is uh middle school and high school i went there yup so this is where the kids are getting like bar and bot mitzvahs i'm not sure if you know what that is but when they turn 13 yeah it's like a huge wedding parents kids yeah jewish kids yup they drop a hundred thousand dollars on this big part of this festival right so they were getting the the uh the range rovers at 16. and the craziest part was i didn't even know what a pj was private jet but when this one child turned 16 dad took a group of friends to australia for a long extended weekend and then they flew back so i was just on a private jet yeah so i was just like wow this is crazy so i'm actually in school with these super wealthy kids and i mean we had a little bit of money but nothing close to that like we were able to get into the school through a basketball scholarship i was recruited back in sixth grade to play basketball here my parents only had to pay like two grand but what that did was it exposed me to a whole different environment like it's unbelievable but what i noticed was the parents were they're doctors lawyers uh one guy was assistants of the sixers right but what it what i noticed was these kids their parents own real estate you know they always talked about their beach houses their apartment buildings you know their complexes that they had so then i started just becoming fascinated about studying the rich studying the wealthy so what i realized was as i started kind of being just you know intrigued by that i started tapping in and i realized that the majority of the people that are wealthy have millions they own some real estate right so being in my in my environment where my parents had that finance background uh dad as a cpa and so forth i basically naturally went to school in college to be in finance right that makes sense yeah yeah so you know i went to university delaware uh university got my finance degree but while i was in school i remember actually you know taking a step back my parents really didn't have money to send me to college right which is you know people people go through that experience but i was able to we had a br we had like a party like basically a going away party for college we were able to muster up a thousand bucks that i had that thousand dollars in my account my mom's like hey listen you got some scholarships but you know we don't have any funds really available for you so i ended up having to work through college but what the job that i took was i was selling a nutrisystem so it's a weight loss food but i would work my summer breaks winter breaks spring breaks but so while other kids are going away going to cancun spring break you know while in out that sort of thing i was locked in at this at this cubicle job but i was selling over the phone i'm talking about putting 16 hours a day in on my brakes selling i'm talking about we were making you know 400 a day 500 a day because i would sell these weight loss packages making anywhere between 20 to 40 dollars a package what would that do on the phone over the phone yeah so as a college student you know i i balled out for a good two weeks for sure so for a good two weeks you know i got the true religion jeans i got some fancy shoes but then i realized i said you know what i don't need all this crap like it's you know you go through that stage but i've been you know tapping into my parents and being extremely frugal i say you know we're just going to go ahead and pay for school so cutting those checks back then while you're going through school you know i'm talking about 18 19 20. cutting those big checks to pay for my college that really taught me a lot about about money and sacrifice and so forth gotcha yeah so you're in college you're working making money yep and when did you start did you start stacking the bread like yeah so what i did was i was stacking the bread i started dabbling a little bit in the stock market are you at the time at this time we're about 20 21. how are you now i'm 35. 35. okay gotcha guys you got you yeah okay so in the stock yo i didn't know what the stock market was at no 20 years old bro and the only reason i knew about the stock market because my parents again they worked from home and they were playing the stock market heavy back when um this was the dot-com era so talking about aols and so forth so they were literally playing with their retirement funds but my mom be like made twenty thousand dollars a day we did ten thousand dollars a day thirty thousand i was like well what is going on like whatever they in i wanna figure out that stock market the downside is they wrote it they rode the wave up and then when it crashed they lost millions right and that's the you know the retirement funds so i'm like man the stock market thing is whoa it's crazy they lost millions yeah and they they sold it they sold their shares they sold their stock so then it's like you know the key is not to sell so that way you can at least ride it back up but you know that was just an experience i had to see so when it came time for college you know there was no funds available and i had to figure it out what is that like what was the household like bro i mean the household was that's almost at that moment like i mean when you had to have felt it as a kid like yeah yeah i mean it was something where you know it was like my dad was always tight and frugal like you know he lost all his money my mom was kind of more on the yo let's go get you know she was aggressive with it um but it was just you know hearing those conversations about money about you know the mortgage are we going to be able to you know cover this mortgage you know the lights and so forth but we had a nice-sized house don't get me wrong you know it was a 5 000 square foot house they still had jobs but you still yeah they still had jobs and still had to put food on the table but it was just uh you know i learned a lot because it's almost like i was taking a behind-the-scenes look at everything between that age like 13 to 16 17. that made me just respect money a little differently it seems like that would be a depressing few weeks bro yeah like or did you see did you hear any discord or uh anger between parents or some see i told you not to i mean like yeah i mean it was there's a little bit of that going on but um i mean they held it together pretty well good yep yep so i was just i was just thankful just to be able to almost you know witness that so now when i see money and so forth i kind of think a little differently and and make sure i have the calculated you know risk and investments for sure for sure okay all right so you're 20 21 years old you're um i assume working at this time and you're putting a couple dollars in the stock market yep yep yeah how do we do it okay we'll go forward then back okay yeah how um how much real estate do you own now man so people always ask me that like what's the number right but i don't really scoreboard watching so what my answer is always it's not enough so and the reason why i say that is because once you start kind of calculating exactly how many properties you have i feel like you're starting to get complacent so it's like so it's not like a few where you can count it like about if i had like six properties i was like yeah i got it no it's it's it's a good it's a sizable account but the thing is it's almost like you're playing basketball i'm a basketball player right we were playing basketball yeah i mean i call you a basketball player i'll be tired a man said bring your sneaks out like where did you like to play basketball give yourself that title all right all right all right listen listen but um the thing is like you playing basketball it's like you run into the scoreboard after every point you make right so it's like yo all right let's put up two points how many points am i at eight to ten that's that but i'm still playing a game so you know there's more room to there's you know i take the approaches i can close on six properties and i'm still like alright where's the next one right because i'm not counting i'm constantly just lining the next play up but obviously in terms of like accounting like i'm sure you have an idea of how much real estate you don't want to tell me yeah i mean we're approaching we're approaching 100 units really approaching yeah between singles uh duplexes triplexes yup dang that's crazy yeah yeah so spread throughout philadelphia chester county delaware yeah where's where's most of it in philly what what part north philly the hood or philly yeah there's gold in the hood i to tell them yeah i got yeah i got something right now it's susquehanna and dolphin got something right on susquehanna triplex duplex that um 17th and susquehanna oh yes yeah it's popping out there i'm trying to tell you is it still is it still like you can buy property for the low out there yeah yeah i bought um i bought a duplex for 40 000 right there in strawberry mansion i put uh i put 60 000 worth of work into that one so i'm all in about 100 grand but it's worth 300 000 right so now you know my strategy is get it tenanted and i'll take it to the bank that 300 000 you'll get a refinance at 75 i go all the way up to 75 percent that's a good chunk of money so i'll basically be able to get my initial investment back plus an extra 100 grand on top okay so right now yo here's the crazy thing it was like a few years ago and it was just like these talks like you can go to philly get some properties five ten thousand dollars yeah that's real that was real i missed that yep i mean it's still happening you just gotta pay a little bit more right things are appreciating tremendously i just picked up a property for twenty thousand dollars in philly um worth 150 fixed up how much money you got to put into it uh that one's probably about fifty thousand because i run my own construction company and we can get into that a little later or we'll get into so um i want to get into that but i want to know how you got into it gotcha talk to me about that first property bro all right so listen so i went to school for finance so i got a finance degree from university delaware graduating three and a half years but i was the guy i was going on every single interview because thankfully where delaware is located there's a lot of banks near there so i mean chase bank was coming through dupont is a big employer they were coming through and bank of america came through so i interviewed with them and i got a position in a leadership rotational program so he only selected five of us out of the whole finance department so they hired me and it was for fifty five thousand put the five thousand dollar signing bonus keep in mind i was already making sixty thousand dollars working part-time in sales people like yo why don't you stay with sales yo i just paid all this money personally to go to college i got to see what this finance thing's about right sure so i'm on the elevator with hr other four uh counterparts with me and we get off the elevator and there's this woman carrying this box and she's in tears my yo what's going on here hr said oh don't worry about don't worry about it we just had some layoffs it's all during the nationalization scare so we just had some layoffs we're just making some room for the younger talent coming through this lady was about 55 years old 55 60 years old had kids in college had a mortgage and they just letting her go like that and she's in tears i'm like this is crazy so that's when a light bulb just went off there is no way that i would give that much power that much control to a company just to be able to pull the plug from you at any moment right so then i said okay then i started to read some books right so i read the richest man in babylon that's my favorite my dad gave that to me back when i was in seventh grade i didn't think anything of i was like you know you talking about arcade and this and that's like yeah this language don't even sound right right but then i tap back into it at a later date i said uh things started to make sense you know i read you know rapper kiyosaki rich dad poor dad naturally um but i was sitting on the couch with my brother right and i'm like you know i see this program and uh he's like well how much is it i said three thousand dollars this is back on you know i'm working and i'm working what was the program for it was for real estate real estate so it was a guy by the name of uh our president currently and i'm no supporter or anything like that but he had this real estate program and i tapped into it and i and i let three thousand dollars go out my pocket to the program right and the program was in but i put that three thousand dollars out and once i invest that three thousand dollars out i gotta get my money back like in regards to i gotta pursue real estate full time because now i know a little bit about it and i know that that's gonna be my ticket out because i didn't wanna be in that nine-to-five situation hugging that cubicle can you imagine hugging that cubicle to your 67 and a half no talk about hugging it tight right like people are going in there hugging that thing tight like yo don't don't don't take this cube like you're right about your two weeks off for the holidays right two weeks off yeah so so then i was like all right so the first property was i'm working at bank of america and we were renting for a year and we're right in delaware looking at the river and i had a girlfriend at the time we were paying 1200 a month for a one bedroom looking at the river i found out that i can get an obstructed view in that same apartment building and only pay a thousand dollars a month so i told my girlfriend at the time hey let's go ahead we're moving to substructive view we're gonna be looking at the parking lot because i want to save the extra 200 a month she's like okay cool right so then i said you know what i don't want to rent anymore so because i i've been reading these real estate books so we i decided to buy my first property in delaware brand new construction three and a half percent down so it's for 250 000 so a quarter million dollar property i had to come up with sixteen thousand dollars so you and your girl are making good money at the time i'm making that fifty five thousand uh dollars right and she's a teacher i think she's probably making thirty thousand something like that and both y'all were on the house no no no we weren't married so no there's no way she would have been on the house and i was putting up the capital right right so she did she did want to she's like hey you know since i'm going to be living there with you you know i want to go on the deed i say i'm you know i was like it's like i know we've been dating for three years but not so fast not so fast because you know i'm putting up the capital hey you got some bread to put toward this yeah she said no so i said all right well can you get a quarter million dollar house which 50 000. absolutely it's uh it's about 1200 dollars a month so so if you got five thousand coming in got okay yeah that makes sense yeah yeah and i didn't have really any expenses yeah you get a quarter million dollar house and i use that three and a half percent the fha loan program so i definitely advise anyone buying a property go with the fha route because you got to put three and a half percent right and they and you can go up to a sizeable amount but the beautiful thing is you can go up to one bedroom all the way up to a four unit apartment building gotcha make sure you set the bottom but so i put that three and a half percent down and we're living in this property four bedrooms three and a half baths and it's just us living in this master suite so i woke up one morning i said hey listen i want to rent some of these rooms out so they rent some of these rooms out what do you mean i said i don't want to pay this mortgage what do you mean you don't want to pay the mortgage like airbnb wasn't popping back then you know just let nobody in your house right listen listen so she said oh you you're crazy there's no way i want strangers living in the house so she she tied my hand said no lady our age living in the property which you know i understand you don't want that happening makes sense makes sense makes good sense then i said uh she said no guys our age living in the property and i said all right that also makes sense she didn't want any creepy old men living in the property either so i was like all right so my hands are completely tied behind my back right aka bro we're not doing this right right but hopped on craigslist i found this retired grandmother entire grandma i was willing to pay 750 for my first floor uh right behind the garage there is a basically like a nice suite i made sure there's a finished bathroom a little walk out to the back and um she could use the kitchen when she pleased so she paid me 750 wow when that 750 of cash hit my palms in my hand i said oh snap this is crazy she wasn't even going upstairs how how many years ago was this what year was this this was back in what was it 2000 in want to say 2010 2010 so about 10 11 years ago yeah yep so she put that money in my pocket in my hand i said this is crazy so i woke up another morning right i told to my girlfriend said hey you know we got that room rented out that's cool we staying in this master but we still got two more rooms across the hall right across from the hall from your room yeah right across the hall because the way the master is in the back of the house the two rooms in the front is like a three-story town home built on a slab no concrete so so we got those two rooms so she's just thinking like what are you talking about i said we gotta rent those out so now you're absolutely crazy there's no way there's no way i'm gonna be letting strangers right across the hall live from live you know right there with us on the same floor sharing the same you know amenities essentially right so i was just thinking woke up the next morning i said listen do you want to be rich or do you want to be poor so she thought about it um that's a difference that's a different question and should we have somebody rent our place right it's like you reframed it like do you want to be richer for yeah which one she said you know i'm okay being poor she said you know my dad worked as a manager at mcdonald's my mom's a teacher you know i mean we did all right i said okay so i had to go to work so i'm on 95 going up to wilmington to work at bank of america and i was just like okay being poor okay being poor this is crazy i don't even sound right it sounds right so i'm pacing back and forth you know getting up to the water cooler going to the hallway walking around like okay being poor i called my brother like yo she said she's okay being poor brother's like yo ride it out man you guys been together three years so i get back there i say you know what i gotta give you something called a two week notice your job or your girl my girl had to give it a two week notice bro really yeah i said listen it's not gonna work i seen too much i seen people hop on the pjs go for a long week until australia i seen the limo service i seen too much i seen people getting a range rover at 16 for their kids i seen people talking about i'm going to the shore to my beach house why would i be okay being poor i just busted my butt in college three and a half years you know what i'm saying i said it's not gonna work yikes you know what i'm saying so i hopped on craigslist i found two guys from vegas so hold on hold on hold on all right you got to take me back to that conversation it's like a movie it's burglary so you give her a two-week notice you got to tell me about this two-week notice what did you say i said listen i love you it's not going to work she was crying she's like what do you mean it's not going are you saying two weeks in terms of i'm giving you two weeks to live leave or like two weeks to figure get yourself together two weeks to pack your bags and hit the door yo that's crazy and but but i get it yeah i get it y'all unequivocally because you know it's like yo you okay being poor i'm trying to go up here it's too much gap this is almost like you're doing negotiation you want five grand i want a hundred grand it's like yo there's too much there's no in between and i already know where her mindset is right it's a mindset thing like why would i want to be building a foundation with somebody that is okay being poor and where i'm trying to not pay any any rent i don't want to pay my mortgage at all right right so grandma that's only half the mortgage i need the whole thing paid so she gotta go [Laughter] i like that i like it though dog i like you talking spicy on this podcast right now okay so she leaves right but but listen she's crying she's you know you know the whole two weeks going by she thought i was playing i hopped on craigslist i found these guys from vegas they were working at the venetian and this was all during the whole nationalization scare economy was getting real bad right so these guys they i told them about the two rooms they're gonna rent each room for six fifty six fifty that's thirteen hundred dollars coming from these two small bedrooms in my town home so i'm like man listen say coming up the stairs she's going down the stairs she's like wow this guy is serious i said i'm sorry i love you i wish you well wish you nothing but the best wish nothing but success but i gotta get this i got i got pursued in my dreams you know yeah so now these guys are living in these bedrooms right i'm living in the master bedroom by myself now single guy by myself i got the soaking tub the stand-up shower the walk-in closet i got the balcony off of my bedroom with king bed all that i'm living you know in my low 20s so i say you know what i don't need all this crap what i need this for so what did i do took that king bed to my two-car garage i moved into the garage you moved into the garage so i'm living in a garage and i'm talking about this ride [Music] he's different so listen i'm in the garage and i i remember it clearly like i still got it to this day i still got the makeshift closet and i just got some racks from from lowe's down the street so that way i can hang up my suits and ties that i was wearing to the bank of america right so now what do you think i did bro i just keep the story going because i was shocked i'm in shock bro this is crazy listen so now i found this guy to rent out my master bedroom the soaking tub walk-in closet the balcony for 750 dollars right so we got my man you had 15 13. you had 2 800. coming in i'm living in the garage listen it gets cold right now it's atlanta it's cold you got the heat on delaware is cold for sure so what i do in the wintertime i had a subzero sleeping bag for those that don't know the sub-zero sleeping bag is the the sleeping bed that goes over top of the hood like the hood you can tighten it up right on the side so you're just little slits in your eyes right so the slub zero sleeping bag was because it got cold that garage wasn't insulated there's no reason for a garage to be insulated people aren't typically nobody runs in a garage done right right so i'm living in a garage sub-zero sleeping bag right and the funny thing is i met my wife while i was living in the garage really yeah but the crazy part is i didn't have to live in the garage right i'm still working at bank of america but i tell everybody i'm living in my well first they thought i was crazy renting out to grandma like yo that's not even your grandma like what are you talking about what are you doing it's like they thought that was crazy then it's like oh you got two guys from craigslist what if they what if they poison your milk in your cereal what if they what they wake up one night just feel like killing you i said man i'm not worried about none of that bro i'm sorry so that like i was i did a uh you know and it speaks to your point like just human beings in a way they think yeah i was uh i was doing an event here actually and i think we were uh we were selling a course maybe the course was um oh it was actually a a program my boy he was uh he's doing a real estate shout out to tommy hill junior yup and the course i want to say might have been a hundred dollars a month okay in my and you know where you know we're going in the q a and my man says okay what if you don't have the money he's like yo we gotta go get it we do a whole motivational speech like yeah yeah yeah and my man says okay what if you invest in the course and your mother gets in an accident you gotta i pray y'all can't make this up he said what if your mother gets in the accident and you got to pay the hospital bills how am i going to afford this i was shocked that your brain right you thinking about the worst possibility radically created something a reason for you not to be successful wow that's crazy who thinks like that what if they poison your milk specifically right you're right you're just telling me they go in the kitchen right unscrew the milk poison your joint so they can keep the garage too right like right bro they thought i was absolutely crazy so i enjoyed it because i actually like fed off of that right because i'm like yo i like being in my own lane so i like going against the grain against you know the status quo so i'm telling these guys like man i got all these people renting the room but i'm not paying anything but the thing is i have a substantial amount of cash flow coming from just that that primary residence so i could have just went out go spend it and increase my living but i read the richest man in babylon and that's not what you do you gotta invest that extra money sure so then i'm like all right i'm ready to buy my my first true investment property and i didn't know everything there was about real estate at all right but i was listening to the 50th law and that's the 50 cent book but he talks about taking that step making that move even when you're not 100 ready so i remember and this was during the nationalization scare all this stuff stuff was crumbling right so i said man listen i'm gonna go ahead and buy this property and just figure it out so i bought my first property in a place called coatesville and the reason why i bought it in coates was because that's the hometown that my dad was in from like all my family was still out there on my dad's side so i was able to pick up this property and it was a foreclosure right this is when a whole bunch of foreclosures were taking place because the economy just just crashed essentially so i picked up this property as my second home for sixty thousand dollars and i only had to put down 10 percent so that's 6 000 plus closing costs we're all in about like 10 grand right but i got introduced to section 8 because my cousin who was also from coatesville at the time she was living in this three-story property five bedrooms two baths and she pulled me to the side and like yo cuz guess what i'm paying for this i'm like what maybe sixteen hundred seventeen hundred she told me a hundred dollars say hundred hours like what are you like how are you paying for what type of thing you got going on so no it's something called section eight i said what you mean section eight yeah it's through the government government pays the the other portion of the rent i just gotta pay a hundred dollars but the best thing is if i were to get fired or you know lose my job it would step in and cover that hundred dollars for me so i said oh snap i said that okay so when i bought that first property i rented out section eight immediately right right so my monthly note is about 550 bucks i rented out section eight for thirteen hundred dollars so now it's just straight cash flow coming in every 30 days so then i was just you know one house led to another but um yeah back in coastal i was just running it up and these were all foreclosed properties and i was getting them on sites like homepath.com homesteps.com and i believe right now the inventory is low but based where we're at with the economy i think that inventory is going to be picking up so people can go ahead and tap in to properties where you only just need a little paint and you just slap a tenant right in there get your cash flow yeah what do you think is about to happen to the economy i see i see the 2021 2022 i think there's going to be a substantial amount of inventory of foreclosed properties and i think that's why it's so important to be ready i'm a big proponent of you don't have to get ready if you stay ready yeah so with me you know that's why i save up a lot of money invest because i want to always be ready yeah right so back when i was even working at bank of america i got to the point where i was actually saving 90 of my take-home pay because you don't have no living expenses got no overhead no car no no mortgage so now all that money is just going to the good getting ready for that next investment all right so you got you got your second when did you get addicted like when did when did you like get that thing yo i'm getting as much as i can get my hands on that addiction really started when that lady put that 700 grandmom put that 750 in my palm because it was cash yeah now i'm used to just getting that direct deposit right but when they put that cash i start counting it start feeling it i'm like man this feels good i like this right oh so it so it just got to the point where now i was working a job at bank of america and they had me working about 60 to 70 hours a week grinding i'm talking about hugging the cubicle and i was salaried right so what really did it for me was we had the end of the year review so those that work at corporate america you know how the end of the year review you know you go you sit right in front of your boss talk about the year so my boss told me that hey doug great year um you know this is the year i'm putting 70 hours of weekend so i'm like oh good i'm gonna get a little bonus i'm gonna get a little raise so he said hey doug you're a meat's meat someone what the heck some meats meats meats meats yeah so you meet expectations on this column meet expectations on this column right so as not to exceed or exceed me they got all these different rankings in corporate america he said unfortunately where the position of the bank is um meets meets they're not getting a bonus this year and we're going to keep your salary where it's at so therefore um you know just keep up the good work keep going keep keep pushing we really appreciate you so what do you mean you really appreciate me i just gave you extra 30 hours every single week of my life and you just say you just say your meats meets slap on the back of the head keep up the good work i said okay i got you i see where you guys are coming from well i can't i still showed up the next day i'm still putting the extra overtime because i knew that that job was going to fund my real estate empire right so that was the mindset i had so people like yo doug how are you still staying late this guy didn't even give you a bonus so don't worry about that guy a guy is funding my empire yeah right right so then you know no matter what they said to me it couldn't break me because now i became obsessed with the work that's what i mean by being obsessed with the work so i'm working at nine to five sometimes working later but when i got home i was clocking in from six to midnight six to two in the morning just engulfed in real estate looking at properties studying real estate listening to audio books right turning the tv off that's that's that's the main thing people don't turn off the tv 100 right they're watching the sports games why am i going to watch lebron james play when i'm where i got to put up my own stats yeah it's like me showing up to somebody's job and sitting at the cubicle and just watching you you know put numbers in all day why would i want to do that yeah right so i focused on myself like yo why watch the game when you have the opportunity to be the game yeah right so now now i'm just engulfed with it but i got obsessed with the work so to the point where i'm bringing my work you know the typically my after nine to five work i guess i got so obsessed i'm bringing that work to work with me right so now i'm getting efficient at my job right so instead of being there for a long period of time knocking on my workout in you know first hour two hours of work then i'm right back to the real estate i'm looking at properties i'm making deals i'm calling contractors i'm i'm learning the game while i'm at work they think i'm just listening to music no we're not listening to music right now we're listening to audio books we're listening to education things that are going to get us to that next level because i can't i seen that lady on the elevator yeah that's not going to be me right right i'm not going to have to rely on another man to put food on my table right that's why i'm so adamant about teaching people how to fish i'm not the guy that's going to be giving out fish giving out money because what good does that do once i stop giving out fish giving out money then you starving yeah for sure right so now that's why it's so important to learn how to fish y'all i'm gonna teach you these these skills you're gonna learn how to fish that we go ahead and pull your own fish feed your family teach them how to fish now people are less dependent on you right yeah for sure that was always been my motto so i just became obsessed with the work and was just at that job just just just pounding just putting my funds together putting my you know that first investment property i was able to put 10 percent down because that was considered my second home right because it was 45 minutes outside of where i lived then after that i had to start putting down 20 down on the investment property and i was doing that for a while but the problem became you know you put your 20 down so i'm buying these properties for 60 000. you put your 20 down so that's 12 000 going out plus closing costs so it may be like 18 grand right i'll get my money back in about a year year and a half give or take but i could only buy two or three properties a year that way because your cash got depleted very very fast right right right right so you capped out essentially unless you just you know have win the lottery you just got a whole bunch of cash and how long were you working at the bank before you like in real estate working at the bank at the same time yep so i did that for five years at the bank five years yup building the empire building up the empire but then i left the bank to work at this japanese company for another two years within finance and then uh from there i worked in uh sales for two years selling acoustical ceiling tiles so that allowed me to be out in the field so i started getting a little taste of freedom while i was out in the field so you must have just left yeah we left about about two and a half years ago two and a half years ago yep gotcha because you started well what'd you say you did 10 years ago that was the first property yeah it was the first property gotcha and you worked at the one job for five years in two years and another two that's nine yep if that was well it was five at bank of america yeah uh two years at the japanese company seven and then uh two years uh at the um sales gig right it might even been longer yeah so nine so nine years oh so you you must have bought the house earlier then yeah yeah it's probably like probably whenever yeah yeah for sure for sure so when did so when did you leave that job like when when did real estate when did you say okay because based on like your pattern it's like i don't want to take my money and live comfortable you know when did but i guess it was it was a long journey yeah but when did you say okay i'm gonna leave and what financial situation were you in like what did you create yeah so that you could say okay it's okay for me to leave now gotcha gotcha yeah yeah so based i'm all about living for free right so with so when i was living for free um back in that back in that uh newark delaware house right i met my wife while i was living in a garage right so i had her use her fha loan which we could talk about but i think that moment became when i when the rental income exceeded my job completely right and it got to the point where even my last job that i had i had flexibility and freedom but i was still getting those calls still getting the emails doug where you at like before i left i lost my i lost my company phone and i lost the company um ipad so i'm like man this is just getting outrageous like i'm putting these projects together i lost it like i showed though i got pictures i showed up and i was like it's like well where's the ipad that we gave you i was like your guess is good as mine right and then it's like what about the phone when i was like i thought i don't know i just don't know because i'm so engulfed like my mind can't even think about the reason why i left that job is because it just got too overwhelming to the point where you know even though it was an easy job i still don't need that in my in my brain because you only process but so much so i knew that you know i need to 100 focus on this real estate thing because that's really what's going to provide that true freedom that we need okay so we have a certain amount of income coming from the real estate property how do you start how do you allocate it because let's say i don't know you have a property and they're paying a thousand dollars your mortgage let's let's just say is six hundred so now you have four hundred dollars yep how do you allocate that 400 do you take a portion for yourself do you give out a portion do you save a portion what do you do yo so what i do is i i'm more on salary right so we pay ourselves salary through paychecks so a portion of the rental income that's coming in we're paid out on salary gotcha then the rest goes right back into the company to getting ready for that next investment property again i'm always about living for free ever since that first property so like for instance um when my when i met my wife she didn't have any fha loans she didn't have any real estate so i said hey before we get married we need you to get a property so we found we used a 203k fha loan program where we were able to get her a triplex for 90 000 and put 60 000 worth of work into it so that was you know 150 000 loan but all with putting that three and a half percent in right so now hold on so they do they fund the construction under this fha and wrap it all into three and a half percent exactly yes you get the purchase and the construction all wrapped into the loan right so if the purchase at 90 000 they'll you know pay the seller that 90 000 but then there'll be a construction budget of 60 000 and then they'll get paid in draw so you find the 203k fha contractor then 203 fha contracts contractor yep okay yep okay so you can only do that once though no you could do it more than once do tell yeah yeah so so the way it works is typically they want you to live in that property right you got to live in a property primary residence but let's say what happens if your situation changes right so for instance a situational change could be you had a child you got married job relocated your family used to be two people now you have you know now you have a kid so now your situation can change and you can go ahead and get another fha loan so let's say you have one fha loan a year passes go ahead and get another one and then you can always if there's no value in the property can refinance out of that initial fha and then go get another one all right they're not going to cap you there's no limit with that gotcha all right let me let me ask you this question yeah so me and my wife we bought a house but she actually bought the house well like it's on her it's on her on her on her name gotcha can i still go get a little yeah like for a primary residence so yeah if you were going to a primary as you guys file your taxes together or yeah well we will be okay yes okay should we not i think you have to technically you have to i believe if you're married but uh yeah you can actually go ahead and get a fha last year we did actually yeah we did but i believe you would you're gonna have to put her on that uh on that loan but you can still put three and a half percent down but i can still get a fha loan yep even though my wife has fha has the fha loan so you got that loan when you guys were married or not married we were married you were mad at that time we weren't married yes you were yes okay so yeah what you could do is if you have some equity what i would do is i would refinance out of that initial loan and then your situation changes or you guys want to buy another property using the fha oh so right now it's it's joint no matter what right gotcha so it's not like me getting one or her getting one right yeah yeah you you had to run that play before you got married so i ran it with my wife before i got married and this is crazy because i'm gonna show you how a couple could come up with 12 units real quick right talk to me all right so let's say you know a couple they're dating one person picks up a four unit building they live in one unit rent out the other three units their significant other picks up another four unit building living one run out the other three right so that's four and four or eight combined then once they go get married and this is all fha three and a half percent down but then once they go ahead and get married right now they can actually go buy another four unit building together using the fha because their situation changed and now they'll be getting that that for the original four unit building at the the guy head i'll be getting paid for by the tenants cash flow coming in the one that the lady had that's the cash flowing money coming in right so now they're living in that four unit they're living for free now they have a good amount of cash flow coming in from those 12 doors and now they're in a situation where they're that much closer to getting their freedom right getting their freedom what do you mean getting their freedom is they don't have to hug the cubicle so for me the freedom is getting away from that that hugging that cubicle right because as you have that cash flow coming in every 30 days the way i look at it is let's say you make 40 an hour right you have one property and it's cash flowing 400 so that one property is is saving you 10 hours of work is the way i would look at it right so it's like okay how many of those properties do i need to to uh mass my income yeah to cover my income right so it's just a simple calculation so now you're just calculating okay my freedom number is ten thousand dollars so how many properties do i need to get that that freedom number got it right so now as you're having that money coming in every 30 days down it's like man i don't have to hug this cubicle i can take a step back i can take a step back and you know whatever your passion is your passion might be hey i just want to i just want to run all day in the park right hey that's what you want to do great do that but you got your freedom you got your time yeah because for me it's not so much about the money it's about that freedom yeah i'd rather have the freedom versus the money big facts you know what i'm saying and i don't want the freedom just for myself i want the freedom for my wife my future kids we don't have kids yet but i need them to have their freedom everyone i'm around they need their freedom because like for instance we played basketball today and we played i think to 12 o'clock we went out to go eat and it's a wednesday if i was hugging that cubicle that wouldn't have been possible boss we've been calling like yo you didn't show up what's going on oh i just stopped by the gym game went over a little bit we played two extra games they're not trying to hear that right right look all right so for my entrepreneurs out there that um maybe they are free in terms of they don't have a job but uh they have a business they're not claiming a whole lot of money on their taxes yep what's your advice all right great i got a couple dollars right so if you got cash coming in and you want to buy your primary residence you want to buy some investment properties give me both scenarios all right i'll give you both scenarios so if you want to buy your primary residence you got something called statement loans so statement loan is where there's banks out there that'll give you the interest rate's going to be a little bit higher than your typical fha right but they're not going to be looking at your taxes they're not looking at your w-2s they're looking at your statements your bank statement so you give them your bank statements and they're going to take an average of what you got coming in on a monthly basis and that's how they're gonna and they're also gonna look at your different expenses you know your credit of course and then they're gonna be able to say hey based off the your statements of the money that you coming in the revenue we can give you five hundred thousand dollars worth of a house that you can go out and purchase right so don't be get discouraged just because you might not be showing a lot on taxes but you have money coming in your entrepreneur you can still own a property right you just use the statement loans but although the interest rate might be a hundred to 200 basis points or one percent or two percent higher than if you were to get fha that one at two percent still equates to a i would rather take that one or two percent on the mortgage versus you know if you're you know you're deducting everything from your taxes and paying that extra tax bill of course you know you see a cpa and all that for sure for sure right okay so if it's a uh investment i already have a home yep yep so with the investment property there's there's something called short-term lenders right they're like hard money lenders but they will actually lend based off the asset itself and that's what i use a lot of i did i just took an l because the flip went bad oh man i'm sorry to hear that yeah it was ugly yeah yeah i didn't have doug in my life hey man listen listen and i don't i'm a buy and hold investor but you can still make flip money as a buy and hold investor but the best part about it is it's tax-free you can make flip money you can make flip money as a buy and hold investor my first time hearing that explain that all right all right so prime example right um my buddy called me up and said hey doug there's this young cat he looks up to me he's looking to sell a property basically got in a little over his head so i said all right cool i went to go see that property within an hour immediately i stopped what i was doing as a north philadelphia i'm talking about in the trenches it was a bad block i said how much you want for this he said um because he was about to sign the papers with his other seller for 50 50 000. i said hey listen i'll give you 55 000. give an extra five you know take care of the young guy so bought this property for 55 000 and mind you the property all the hard work has been done some all the elections 35 cash 55 000 cash but i use leverage i use this short term funder which i'll touch on so 55 000 of cash right and it's a three bedroom property right in the middle of the hood in north philadelphia the construction that needed was only about ten thousand dollars i had to put some floors down get some appliances slap some counters and counter tops and um put the light fixtures in but everything else was done from we already had new heat new electric all that good stuff right so i put that ten thousand dollars so we're all in 65 000 but i got a short-term funder for this property also called hard money right right so what they wanted was 10 of the purchase price purchase price 55 000 right so 10 percent of that 5500 right then you got closing costs you got points you got to pay so i'm all in just under about 10 grand to walk into this deal right so i walk into this deal we get it done in about a little under two months right because it was just no cosmetic essentially we're just slapping things together so i just literally got the appraisal back today on that property that appraisal today today yeah yeah right to the email a property appraised for 140 000 right so mind you i put my 10 grand up and uh you know the loan is uh for 60 thousand dollars because i put my five you know for for that property right i use short-term funding that hard money loan which is a 12-month loan i can get out at any time within those 12 months so since it appraised for 140 000 my bank my long-term finance institution they'll cash me out or they'll give me a mortgage at 75 percent yes yeah yeah you'll be paying attention yeah so since they'll give me a mortgage at that 75 percent that means they'll give me a loan up to a hundred and five thousand dollars you'll pay back the hard money money pay back the hard money they're 60. yeah what's left over 45 000. and that's including me getting my you know my 5 000 back yeah so now it's 45 000 get my five back so basically forty thousand dollars so i took that took that money and basically it took that ten thousand dollars turned it into thirty five thousand dollars surplus cash surplus right so now that thirty five thousand dollars that is tax free money the 35 000 is tax free money because the yes because the bank it's not like gains necessarily they're just paying for a mortgage on the house they just give you the cash on the house so you don't you don't they don't tax that right so is money coming from a loan essentially right so you don't get taxed on loan money on a loan yeah i got to see what's going on here you see how it works yeah so now i took the 10 got my 10 back turn it into like 35 000 right this is just a little ranky dank crib in the hood i'm writing it out for 13.80 a month did you already so you just closed no oh when'd you buy this a while ago like like two months ago and you just got you just got the appraisal i got the appraisal so i'll be closing on the refinance right i'll be closed on the refinance in about a week or two a week and two out but it's rented out already it's already rented out and they paying 13.80 1380 cali so my monthly note will be i think probably like six 650 bucks tax is real low in philly so 1380 minus 650 i don't have my calculator on me but yeah we're walking away with probably about almost 700 dollars of cash flow do you have a course that teaches this stuff i do i do can my people get a discount like they're listening here i'll talk to my guy i think we could work something out no yeah like yo do me a favor man this just a promo code i don't care what it is man because this seems it seems very um simple maybe not easy yeah but the concept itself seems very simple listen listen it's a formula it's a calculated formula that's why you know you look on my instagram and so forth i take time to explain and give the game right but it's all about how you analyze that deal for me i analyze every deal at 65 percent of the arv right so what that means i'll break that down it's a simple equation let's take 0.65 times the arv and for those that don't know it that's after repair value so we run our comps right so we go ahead and say i'm going in this north philly neighborhood i'll do a radius of about half a mile radius right and i'll see all the similar homes of what they sold for right all the fixed up houses right because that's how i'm gonna be fixing up my property so then i'll take three or four of those properties get the square footage take the average price per square foot and that's gonna give me uh average uh arv after repair value right because it's pulling those comps so there's actual actual data that you can tap into so now that we got that out there how do you get the prices within that radius yeah how do you get that yup yup so one of my one of my ways i use is something called prop stream right and that's where i can go into all these neighborhoods i can run comparables right and i'll give you a link and all that but i can run the comparables so now i could be educated i could be an educated investor because a lot of times people just want to buy real estate just to buy real estate i own some bricks but by being educated on the process you're going to avoid making a lot of mistakes and you're going to avoid losing a lot of money because if you jump in this thing not knowing what you're doing yeah because i didn't have someone to walk me through every single step so you know there's been some trials and tribulations to get to this point but i'm glad that people are going to be able to learn from that blueprint but back to the calculation 65 so you take 65 percent of the ar video i'll keep the math simple okay let's say it's a hundred thousand dollar property arv multiply that by 0.65 that's 65 000 yep right so on the other side of the equation so that 0.65 times the arv equals the purchase price plus the construction cost okay so the purchase price and the construction cost needs to be 65 percent of the ar video repair value right got it right so simple algebra equation so for instance we have a purchase price of twenty thousand dollars with a construction budget of forty thousand dollars and that property is worth a hundred thousand dollars that's good money yeah we're good money we're even we're even below that 65 rule that's where we want to be but let's say for instance if we're at a purchase price of 20 000 with construction at sixty thousand dollars now we're at eighty thousand dollars but the value is only a hundred thousand dollars we're at eighty percent of the arv right we need that that's not good we got to get that price or we got to get that price lowered or we got to figure out that get that construction budget lower or we just simply got to walk away how much of a stickler are you for this 65 percent i'm a stickler i'm talking about 68 i'm not doing it because there's always see people that would do that deal they have a scarcity mindset but i write in my journal every single day real estate deals come to me easily frequently and abundantly right so when i heard nehemiah say that about something y'all get see that's why y'all rich together i know it yeah yeah yeah money comes easily frequently abundantly oh yeah yeah listen so so that's the equation so the key is i got a whole calculator that i could just type in these keys and it'll spit out good deal move forward bad deal move no stop get the price lower right but but let me tell you about this is why i love real estate i just picked up a six package deal a six package deal right so these were six properties they're actually already fixed up and this guy that i already bought a couple of collection of properties from but yes six properties so you're buying portfolios now yeah so you'll buy like okay what you got i'll take them all if it's right if it's right if the deal is right but listen so this he already had these deals on section eight so already you know section eight my ears perk up that's guaranteed money coming in every 30 days i said well how much you want for the six pack you said i want i want 525 000 for the six pack i said well let me see what's in the six pack so i start analyzing the deals i start looking at the numbers guess what that portfolio is worth what 850 000 and that's being extremely conservative so i say i'll take it for 525 i didn't really negotiate with him i said let me get that off your hands for 5 25. these are properties that he already he got him for the low and the reason why he's selling them is because he got he got him for pennies fixed him up and he had him for about four to five years so he already got all his bread back right and he's like hey i just want to get out the game i'll do a bigger you know play he wants to buy some industrial stuff so i say hey we could do 525. i took it to my short-term lender i say listen i got this portfolio i'm not looking to purchase it's already fixed up i need it at this 525 number they say doug for you since you've been doing so many deals with us you don't even have to worry about putting up any anything except for the closing cost right so closing costs not a relationship with the bank i got a laser slip but if you didn't have a relationship with the bank i didn't have a relationship i would have to put up uh 20 actually 10 depends either 10 or 20 let's say 20 of that purchase price so the purchase price is 527 525. so then that's about 100 100 grand plus some closing costs right so i put up i ended up having to put 37 000 down to do this five pack six package deal is that closing costs yes that was closing costs you know they charge points i gotta pay the taxes uh just for those who don't know because i again i told you i went through this nightmare um the points are um the per thousand dollars or something like that right so the way appointment works is think of a point as one percent of the loan yeah that one right yeah so if you have if you have uh one point on half a million dollars and that's five thousand dollars yeah right so we pay so we're paying insurances for the year for all those properties we're paying closing costs we're paying you know lawyer fees all that good stuff right so we're paying thirty seven thousand dollars for this six package already ready to go and i even told my lender what up what my plan my play is so now properties are owned you know money's coming in about eight thousand dollars of of revenues coming in from that property but now i'm in the process of refinancing that six package right at that 850 000 valuation so you are now going to take about about 153 hold on don't tell me 75 150 000 that'd be 300 000 600 by 600 000 yes i'll take on a new loan so yeah so basically what i'll do is i'll refinance at 75 of that 850 000 valuation which is about 600 000 right got you right and you only owe you only got it for 525 525 so you'll get a a mortgage on it yep and you'll be able to pocket about 75 000 right right without even lifting the hammer that's one of my deals with no construction but it's already fixed up it was all about being able to understand and analyze what that property what that package was worth so now and it's also about having the different lenders set up right so boom i got the loan for you know short-term funding for 12 months i got 12 months to go ahead and refinance but i'm going to refinance way before then all right now i'm going to be able to refinance it get my initial money back plus put a couple extra dollars in my pocket but then the cash flow is gonna be right around 4 500 a month coming in the cash flow is 4 500 after you refinance right got it cash okay so after so at the eight thousand coming in minus you know the mortgages taxes insurance all that good stuff about about four to four five hundred coming in on the monthly basis all from that six package and guess where i found this guy at where craigslist on craigslist on craigslist you were looking on craigslist every day so you're always looking for properties and deals yeah that's what i do that's why i wake up at 4 30 in the morning people like man this guy waking up early because there's deals at 4 30 in the morning they're still safe right get this guy from bro godly cause listen if you're an investor i'm an investor you wake up at nine i wake up at 4 30. if a deal hits craigslist who's going to see it first better yet who's going to be at that property with that seller before you even wake up before you even wake up so before you even wake up and do your morning stretch you know brush your teeth i'm already at the property signing the paperwork running it over to the title company um yo doug are you when you came to atlanta did you look at proper do you look at it for property sell here i'm always looking so okay do you have uh properties outside of like that philly area uh it's kind of like right now it's in the philly area but i'm starting to look at other markets gotcha yeah so when you go to other markets you gotta find a whole new like management company and all that kind of stuff right you have to build your team and that's what i teach how to build your team no matter what market you're in so that's that's the thing it's all about your success depends on your team before when i was first getting started i was doing everything so after i clock out at 905 i'm the i'm putting these projects together i'm painting i'm doing all this i'm doing placing the tenants following up doing the section eight inspections i was doing literally everything in the business that's why i really know every single aspect like i even wired up houses before i've done plumbing before right because i was fascinated because i was i was hugging that cubicle so you can only imagine like wow that's what the world feel like like geez i could be fixing stuff in my hands but that got old yeah for sure for sure all right so you're obviously dope with real estate but give me a testimonial tell me about your students doug you got some students that i'm talking about i want one give me an example of somebody who maybe spent i mean they just just just so green to real estate don't know nothing about it yup yup you got any testimonials like yeah yeah we got plenty of them man listen this so there's this couple uh janiece and aaron right so it's funny uh aaron came to my ride along and my ride along is about 10 hours intense day where we're giving the game for 10 hours taking them to about six or seven different job sites that i have open actively all various different stages but his wife like what are you doing don't go to that ride-along all that real estate doesn't work she was in his ear crazy like don't go he stood up took that stand which i can respect of course you you left the whole person at least he said right right right right so he still went he went and then you know he got the understanding then he tapped into the a e program the acquisition execution program and then i started noticing his wife is on the calls and the mentorship and she's going harder than him i'm like wow look at this it's interesting so they bought they bought the first investment property i mean they're blitzing they're running every play to the tee i give the whole game the whole blueprint to the t i'm talking about like dang you guys just following every single step huh they grabbed the step refinance got the bread back then they bought a duplex i think they're on their third or fourth house right now oh wow it's only been not even a year really so this is a couple and and they're literally following it to a t and i'm so happy for them are proud for them because i see them at home depot in the evening right on home depot dates if you will but they're building their team and they're building their empire and man it's just it's just been remarkable to see that and um i think uh aaron he works in the nursing field uh his wife's able to work from home but i just see now the wife is actually more excited about real estate than he is and she was the same person that was like oh no that real estate doesn't work this and that but now he's starting to see the light at the end of the tunnel and that just puts the biggest smile on my face simply because you're changing lives right you're changing mindsets and you're letting them know and it's funny because even on our calls they have their i think 11 or 12 year old daughter tapping in she's going to the job site she's going to home depot she's figuring things out she's even analyzing deals now so just to see that impact man there's nothing like it because it's funny because during my whole time in real estate i've been talking about the game giving the game every chance i got but as my buddy says people don't pay they don't pay attention right so for the longest i'm giving the game people still not paying attention now they want to get with me i'm like you know i can't i just don't have the time yeah for sure the energy i'm building my empire as well as helping other people build their empires right but uh i'm happy for them they're rolling that's what it's just like there's so many people out there that i'm just trying to just give the knowledge and information like you go on my instagram there's probably just probably about 10 hours plus of content breaking it down i'm consistent right consistently just giving you the the jewels the the tips i trust you too man i trust you like you're going to be consistent you just seem you're my carpets at five o'clock in the morning scrubbing your level of discipline is insane bro yeah so do you how often do your students get to talk to you uh once a week once a week yeah once a week so if i'm on the calls then i can like ask you certain questions about my specific deal absolutely yup so this is how it works they can ask me about their specific deals whatever situation they have because we have a q a session it's only supposed to be an hour right i always over deliver right so it was two hour calls but they had that but then they also had the private group that we have so people are talking about their accomplishments their questions any concerns that they have but then any questions that they have you know i got the new camera because i like to use it so i'm in there doing a video response to their personal question and we're tapping in so that way they just get fully engaged and get their questions answered i love it because you know real estate it's a lot to it yeah but by having the blueprint man it consolidates that time frame so now you take 10 years of experience consolidate it now you start making moves right away right um i like it i like who don't you recommend real estate investing for i don't recommend recommend real estate investment for a person that always needs confirmation from others right so it's like you got a deal you started okay i'm sorry go ahead go ahead so somebody that needs confirmation from others that's the person where save a hot deal hits you hits your wire right you start to ask your bus driver you start asking your mom that never owned a property she's still renting on section 8 for the last 30 years you asking your brother you asking your kindergarten teacher you're asking your friend you asking your dog like come on now if you got the information you got to really dig deep down inside because they're always going to be that person that doesn't know about real estate going to tell you oh don't do that i heard some horror stories for sure they're going to tear your property up imagine if i would have listened to my co-workers when i was telling them going to invest in real estate and they're talking about you know they're going to tear up your property they're not going to pay you you know what i mean you'll never be able to you know poison your milk yeah the poison your milk right i'd have been stopped at square one like man i don't want my milk poison i'm trying to live right so so that person is simply not gonna be able to like you gotta you gotta be able to get over that and it has to be the person that's also willing to put in that work yeah for sure so i think a lot of times i know you're wearing a shirt to say work but that's really what it comes down to i'm gonna give you the blueprint give you the game but you got to put in the work yeah but the work becomes easier once you have that blueprint big facts all right man listen uh i think this has just been a phenomenal you said like uh i i'll work out guys trying to get some sort of discount code for our family members okay um and we'll put it in the description uh can you do that or am i over promising yeah we can do that yeah delivering right now yeah i'm just assuming you better give us some love so uh yeah we got you man i i appreciate that my brother um i i gotta i gotta uh i gotta do a little commercial then i'm gonna ask you like a couple more questions yeah and then we're gonna jump into it so even if you're watching this i need you to like this video just like the video i need you to leave a um a a comment okay and i need you to uh give us a five-star rating if you think it's a five-star interview if it sucks it's okay just don't leave anything but i need a five-star interview okay so um this episode is sponsored as always by the morning meetup themorningmeetup.com it is the only the only the only community that entrepreneurs gather every single day monday through friday 8 a.m to 9 a.m eastern standard time entrepreneurs get together and we learn how to start your business how to grow your business how to network how to like you're connected with a whole group deal we got over 300 people on a call every single morning monday through friday 8 a.m to 9 a.m eastern standard time so if you are looking for a group of entrepreneurs to grow with you need to go to the morningmeetup.com if you don't even have an idea for a business and you want to like try to try to just get any environment where you can grow and learn some things um go to themorningmeetup.com okay so i'm gonna do something special for you that's listening you can just taste test the morning meetup for one dollar right now you will you enroll one dollar for seven days if you like it stay with us for the rest of your life for for the rest of the year or for the rest of the month if you don't it's okay you've just invested a dollar and everything's okay so i'm going to is that my okay all right cool um is that okay all right so um yes just just sign up man it's a dollar okay i'll see you in the morning all right cool so i gotta i gotta ask a question yep yep um i like to make predictions on the podcast yeah and i'd like for you to predict where you think you'll be in the next five to ten years so that i can watch this video five to ten years from today and i say yo doug said he was gonna do that look i mean on the staples center like right well give me your five to ten years got you got you five to ten years i think we're going to be at about probably 500 units is the plan five years so for that plus i have um a supplement business that i just just launched as well so we have something called cmos gummies that are coming to the world word yeah see most gummies so steve moss gummies yeah yeah bro when's the drop today word you got do you have something for you i got i got you i got you i got you yeah that's crazy so so that's why i love real estate because it's crazy all messed up right there like cmos gummies yeah yeah all natural certified all that good stuff made with beets vitamin d vitamin e and it tastes good oh wow so it's just about we can't get a discount on that can we we got you i'll give you ten percent i love it just because you asked i'm all about asking for that yeah yeah i'm sorry go ahead so yep so we're gonna have we're gonna have 500 plus units uh the supplement business is going to go through the roof um what else what else we going to be doing i really just want to live in multiple different countries like months at a time so i think that's coming that's probably happening in the near future but uh that's the main thing it really just is more freedom more mobility really is what it comes down to i love it yeah i love it man i mean shoot those are some goals right there listen man um thank you doug uh because you kind of just you like we're demystifying this whole real estate thing right we hear people i got another big play for you but maybe we'll just i don't know if you guys ready for it i got another big one don't talk to me like that man come on talk to me talk to me nice man what are you doing what are we doing listen listen all right so for those that know me i'm you know before i i'm running around putting these plays together right now i said i got six or seven projects typically taking place at the time but guess who's the general contractor are you the gc i'm the gc and the reason why i'm gcv is because i've had a hundred thousand dollars tied up in a project for two years because someone else was gc and i heard every single excuse known to man i said i never again would allow someone to put had that much control over my project right so now i learned the process of being to come a general contract how to put together these properties because i watched it in slow motion i said these guys are no smarter than me i could do that but now i'm being my own gc let me just kind of break it down to you right so i purchased this one duplex recently for sixty thousand dollars construction budget is ninety thousand dollars right and i took my short-term funder for short-term lender hard money lender to you know fund me this project i told him i need ninety thousand dollars but i build at about fifty three dollars a square foot right so we're building at fifty three dollars a square foot when it comes time to putting up my cost that i need to do the construction i put it at about 85 dollars a square foot okay hold on okay we got we gotta we gotta just run it back yeah yeah just say the same thing again just you know yeah so i build i'm my own general contractor i'll keep the numbers a little bit simple so i build that fifty three dollars a square foot but we'll just say fifty dollars a square foot so that's your fee that's your that's my true cost your true cost for putting the project together so as a general contractor i'm not swinging the hammers i'm not swinging the nails i'm making the phone calls 53 dollars per square foot foot so it's a thousand square foot property cost me 50. it's going to be about 53 okay guys right so but for my lender i say hey i'm i need 85 a square foot so 85 000 dollars in the construction cost to do that project right and that's reasonable most contractors charging 85 90 a square foot but now that i'm actually getting it done for 53 dollars a square foot guess where that extra about 30 dollars goes in your pocket in my pocket for being my own general contractor and guess who pays it it comes out the lender pays it yeah right because people like you know doug why are you putting these projects together yourself don't just hire gc why would i give another man thirty thousand dollars of seven projects that i have going on simultaneously um right so i'd rather pay myself as the general contractor so now i just showed you multiple ways to make money putting together your projects you buy right you analyze that deal be your own general contractor so now you're putting in any extra 10 to 30 000 even more because one project is crazy but uh even more money in your pocket and then you go ahead and refinance it because the numbers still work even with that gc fee at that 65 percent that we're analyzing the deal numbers still work so now you're making money as a gc you get some cash you get all your initial investment back when you refinance it and then some extra cash on that but then you also run your numbers to make sure you're still going to be in a cash flowing position so now you basically got a free house you got that house covered by your gc fee or you know when you do the cash out refi or both now you're able to scale up and grow your business so instead of just doing one property two properties at a time you can do seven properties ten properties at a time and all you're doing as a gc is you're just making up picking up the phone so hey just got another one can you go ahead and demo that property hey it had the lumber moved over here framers go ahead and frame hey i need the electrician go ahead run the wire run the plumbing now you're your own general contractor calling the shots now you just put let's say you do 10 projects a year and that your gc fee is 30 000. just put extra 30 300 000 in your pocket just for putting your own pieces of property together that you're not selling you're keeping these properties for the long term so now by keeping them from the long term who's paying a note that's why we lock up those guaranteed rentals so they're paying down that note so every single month your net worth is going up because they're chipping away at the principal on those loans so now you look up 30 years from now and all those properties are paid off so some people when all these properties paid off and say okay i'll just collect more rent right so that's one option just collect more rent or you can sell them cash out you know you pay your capital gains tax or what i would do i would refinance all those properties again and run them through another 30-year mortgage right so now we have all that cash say the portfolio's worth 10 million it cashes out at 75 of that 10 million so they give us a check for 7.5 million after that 30 years span now you take on another 30-year mortgage still rent those same properties out section 8 or you know veteran housing so many different avenues that you can rent those properties out and now you just keep doing it over and over again now you just pass that same portfolio down to the kids like yo number one rule don't sell the properties number one rule have you ever have you ever fixed and flipped the property i tried i tried there's one property i fixed up uh but my wife liked the kitchen because we were living in the triflex at the time so we ended up moving into that particular unit but it was in in my company name right and i was like man how do i get out of my company name so what i did was i sold it to my wife i sold that product fixed my property and sold it to your golly so number one rule is never sell a property never sell the property man listen because i see each property as a retirement bucket right so you gotta think about it let's say you got all these properties worth a hundred thousand dollars tenants paying it down so then when it comes time to retire in 30 years or whatever you want to call retirement got a hundred thousand dollars here 100 000 here 200 over here 400 over here 600 over here whatever they're each individual retirement buckets i'll rather not only get paid for a property one time i only get paid every 30 days every year every five years every 10 years every 30 years every 100 years you know what i'm saying i always want to be getting paid from the asset i'm gonna put in all that work initially early on but why keep putting in all that work and all that energy and then selling it to make your thirty thousand by the time i was doing the math the other day let's say you're expecting a forty thousand dollar profit you can pay the realtor six percent you pay your you pay your closing costs all that good stuff and by the time that 40 000 gets chopped down to 20 000 it's not worth it i'd rather go ahead and mask that huge portfolio so it's just a mindset thing people just want to flip get that quick money but you can still flip and be a buy and hold investor still get flipped money as a buy hold investor ah man you're an animal bro you are a beast that's it yeah you're different you're different i like it i'm listen i am i am on your team brother uh so uh ideally i'd like to get some money with you okay if that's possible okay he said yes y'all said we can get somebody together i'm gonna show you i'm gonna show you how to fish matter of fact that's what i'm talking about i don't want no i want to get i want to get my own fish okay let's get some money together all right cool um yeah well thank you man thank you thank you um oh yeah no problem man really you know i did this this podcast for very selfish reasons because if i didn't have this podcast i don't know if he's you know just sit down with me for an hour and just coach me and i gave no money yeah so it's very selfish so you gave me the game right right it just so happens that the rest of the world gets to see it in this video list forever so thank you for coming and i'm sure you you impacted so many people in this episode man so thank you thank you appreciate it so tell the people how to find you man hey listen someone instagram doug d-o-u-g dept so that's d-e p like peter t like tom e like eddie says doug deb make sure you follow me on instagram simply because we have tons of videos on there but also you can tap into my website it's called execute with doug d-o-u-g dot com execute with dots make sure y'all go to the website all right close this out strong man give us a word of wisdom my brother hey listen words of wisdom don't give up keep going no matter what give me something else yo here's crazy it's so deep and profound that somebody needs to hear don't give up that's it that's the name of the game she's not giving up yeah to achieve you must believe anything you want you can have i mean we going for bars and bars but that's the main thing and anything you want you can have but one of the big things that i recommend write in the journal every single day so what i write in my journal every single day money comes easily frequently and abundantly real estate deals come to me easily frequently and abundantly and i always start off every morning good morning good morning good morning it's another beautiful day to get it i'm thankful for just being alive i'm thankful being able to breathe i'm thinking for another day to pursue my passion that's how i start every single day because once you are put in that positive mindset positive things start to happen i love it i love it look man we can't close the podcast out better than that man listen go follow doug okay be a part of this course y'all gonna see me on them calls listening soaking up the juice okay um so go get you some social proof okay go build something and just promise me after you build it you'll teach somebody else how you did it alright we are out of here peace

Channel: David Never Sleeps

Views: 189,058

Rating: 4.9583335 out of 5

Keywords: realestate, dougdept, focused, section8, wholesale, rentrooms, fhaloans, rentingrooms, mortgage

Id: d677N7OMScM

Length: 86min 11sec (5171 seconds)

Published: Thu Feb 25 2021