R&G #11 From losing it all twice to financial freedom with real estate with Welby Accely

[Music] all right so welcome back to another episode of the ransom gems real estate podcast my name is matt garland and mls number 58700 better known as mg the mortgage guy and my name is kiana watson broker extraordinaire license number three one seven five seven six yes yes yes so we got an incredible episode today we got my man welby aka my best 197. what's good my guy i'm good i'm good i'm good man so thank you thank you for you guys having me i'm i'm deeply humbled by it nah no doubt brother no doubt man so look let's start off first and foremost when did you fall in love with real estate i i'd say i fell in love in real estate maybe about the age of seven eight years old i fell in love with real estate okay how did you fall in love or to say at that age so um i'm first generation haitian american and i'm from brooklyn and um we was living in brooklyn brooklyn in the house so we we grew up in the projects in brooklyn kenosha projects and um it was me my four brothers well it was four of us at the time and um it was about 11 of us living in a three bedroom in the projects so i had a godfather that would come and pick us up me and my siblings to go to long island so for those people that don't know long island is the suburbs of new york area and he would come with a nice car and he would always always be nicely dressed so then he would pick me and my brothers up to go hang out with my god brothers and sisters and one of the biggest things that intrigued me by going over there was the fact that living in the projects my haitian parents were extremely protective of us so we weren't able to ride our bikes anywhere but in the cul-de-sac but when i went to long island my godfather would give us a bike and say just run free and we would literally ride our bikes in the street and it blew my mind and i never realized until later on in life how much that influenced me just being able to ride my bike in the street and from understanding that my godfather was in real estate so he he owned his own brokerage and he had maybe two or three of his own rental properties and then that's where i got the initial introduction into real estate man something that central is riding your bike yes you know what i mean i didn't realize that until much later in life but just being able to ride my bike and then that became a goal of mine and my my twin i have a twin brother and uh that became our goal that we were going to end up living in a nice area of long island eventually sometime in our lives that's so that's so powerful yeah no that is powerful exposure yeah exposure is key and i think um all of our guests when we ask them that question it always starts you know so far what we're seeing is it's not at home it's starting with someone that's close to them that happen to be maybe not a mogul in real estate but was dibbling dabbling absolutely that exposure changed your life to where you are right now absolutely no that's dope so where you're from new york do you invest in new york i did i've invested in new york yeah i've invested in new york but when i first started investing was actually in atlanta okay and um i brag about my losses i promote about the losses the hell that i've been through are big i'm big on social media promoting the good the bad the ugly about real estate right so i brag about the mistakes that i made i i brag about being taken advantage of i brag about being robbed i i brag about being lied to being you know in that in every aspect of the business you can name it i've been through it but when i first started buying in in um real estate i lived in new york and this is when atlanta started becoming the mecca for where a lot of people look like this was in 2004 okay when i bought my first piece of property so what i did is i did like everybody else do you read a couple of books and you think because you understood a handful of acronyms you understood the business because i heard um um arv roi and then i spoke to a handful of people i thought that i was ready so what i ended up doing is i still i never moved to atlanta but i decided to go to atlanta then my twin brother cousins we all at the same time simultaneously came to atlanta to come and purchase a property and i was in november of 2004 and i said i'm not leaving unless i come back with a property so i found a four unit property in stone mountain i never understood acquisition i never understood why i was buying that property all i know was that i had new york money and i spent it um realtor represented to me lies which i didn't understand so they she represented as if she cared about myself and the rest of the parties that came with me and she completely misrepresented so when i purchased the property i'm finding out later on i paid two this is after i lost it all because i lost it all multiple times in this business to nothing so with realizing after purchasing the property this supposed property that's supposed to be a rental that i bought with no money out of pocket because they were doing 100 financing against time this was 2 000 and what 2004. exactly wow cowboy we like to always make sure we reference that back because those those times are over they are done absolutely but again i kind of i kind of think different but you think okay but what ended up happening i bought the property and long story short a property that was supposedly from what was represented to me would be able to uh be rented for eight nine hundred per apartment you multiply it times four you would make x amount of money i was never able to get no more than 500 per apartment my mortgage on that apartment was uh just over two thousand dollars a month and let's not forget i don't live here so i have to have a property manager so my property manager was netting more money than i was on a property i had to carry mm-hmm so i fought for trying i'm working and my money is going to maintaining a property that did nothing for me the contractor robbed me told me he was going to repair the property and do the things that he did i sent them spent the money and then guess what when i come back the work wasn't done my money was gone you know but i would say by 2008 9 i was wiped out i lost everything so now you imagine now i lost it to foreclosure and the property that i purchased at the time for 220 then refinanced it like everybody's doing today utilizing certain strategies that i tell everybody to be careful about i refinanced like everybody else was doing which increased my mortgage which increased um um what i owed to the bank and i still couldn't cash flow and then not too long after that by 2008 i lost the prop 2008 or nine i can't remember uh i lost the property to foreclosure um the person that purchased the property is the type of person i am today um so the person who purchased the property bought the property for sixty thousand dollars and today my name is still on the property today if you google searching out whoever pulls me to the side i'll give you all the address and my name is still on the property till this day on the property yeah as difficult as that was as difficult as that was i went back with my tail between my legs here i am a man with 700 credit score everybody's problem with their credit score my credit i owed bank of america that there was money attached to that situation because i'm fighting fighting trying to save my life yeah like all of us are trying to do financially and imagine now i got a foreclosure now on my name i owe bank of america upwards of 50 60 000 and i'm wiped out wow all my friends in the industry that's supposedly my friends nobody care about you that much in this business no they don't care that [ __ ] you you can act like you do nobody give a damn about you in this business that's why i stress with everybody that's in this room everybody that does this real estate you have to understand that we all bosses it has nothing to do with the amount of units or amount of properties you have nothing moves without us right everybody that works in this industry works for us you know if you're a mortgage broker or an accountant or uh uh an attorney you can't make no money unless i sign on it i never understood that power oh that's why i kept getting robbed i kept getting robbed i kept getting robbed so by i'd say maybe 10 or 11 i got back in the game again mind you i'm working so everybody that's looking for investors i tell everybody your first investor is your job if you decide to do the right thing with your job that's going to be the best investor for you and you ain't got a bank or no your your a family member or a friend or anybody invest your money from your job sacrifice most people aren't willing to do that yeah so me my twin brother we animals about it and that's what we did so everybody i say with the most respect i said that i'm the jehovah witness of real estate and i mean that with that much respect everybody knows that they're relentless on pushing the narrative that they want you to listen to not that it's wrong yeah that's hawaiian yeah so when people would see me walking down the street they know welby's about to talk to me about real estate they would run the other way and the reason why i want to talk about real estate is because i i've always understood the importance of real estate not only the importance how hard that they went to make sure that we couldn't get into real estate they went hard to make sure that so it always was a passion for me so people laughed at me joked on me behind my back all of that so by the time i got back into the game um fighting um i ended up losing it all again let's talk about that yeah the reason why i happen to lose it all again one the best lessons you could ever have is the most from the mistakes from others or from yourself so even with the fact that the mistakes was right in my face i kept trying to skip the process the game that me is gonna talk that we'll talk about and any other person that you speak about is the same regurgitating the same thing over and over again that we've been talking about since the since the 70s and 80s there's nothing different from anybody that's talking that people choose to listen to what they want to hear and figure that i got a better and quicker way to do it and that was me so i kept skipping the process so i would initiate getting into doing something properly then i would skip the process midway somewhere and it would come tumbling down so that's what ended up happening to me again by 2000 11 or 12 i was wiped out again yeah and i'm when i tell you wiped out i'm saying i was done i had no more money i had my employment thank god but i didn't have nothing else by that point and i'm fast-forwarded because it's a huge story because it was a whole bunch of other things but at that point i had 300 dollars to my name 2012. 11 12. don't hold on to the day's hypothesis it was a whole i went through so much in the game yeah yeah yeah all right and a lot of times i went through i didn't go through it alone i went through it me and my twin brother we mirrored ourselves or believe it or not even without us trying our losses and the hell we've mirrored it without us even realizing we both lost our properties a month apart wiped out and imagine now as a man right you're responsible to handle your household regardless whatever you married or not or whatever you are you supposed to be the one that's the protector to take care of and not the people that are with you don't even realize that we potentially gonna be out on the street they don't even realize you're about to be out in the street by that point by that point i got wiped out i lost it all now don't forget everybody the rules are if you have a foreclosure or anything else like that for seven years you can't purchase anything so if that happened to me in 2009 or whatever it was that means technically i'm not was i was not supposed to be involved in real estate until recently the last two three years yeah right obviously i didn't do that right so when they didn't school us to the game i didn't understand i i didn't i i know i wanted to have good credit but i didn't understand the importance of credit that's why we squander our credit the way that we do with the things that we do my brother started learning the credit game and i mean not because he's my brother he's the best at it with doing whatever he has to do he got me right again at the same time when he got me right again i went to my accountant with tears in my eyes i said i lost it all i don't know what to do she says to me baby come in we sat down and she started looking it makes me emotional you think about it and she says to me let me see what i could do for you i said all right she do what she has to do she got me back thirteen thousand dollars that year oh wow that thirteen thousand dollars that mean i have thirteen thousand three hundred dollars now right so now i say wait a minute i just got back thirteen thousand dollars that means in a year's time i'm going to get another 13 000 again so that means if i sacrifice and bust my tail for the course of the year i'm a minimum gonna have 26 000 and whatever i could do in between would be up so in that one year i saved up upwards of fifty thousand dollars and i took that money and i said i'm getting busy again so this time around now i made mistakes i still make mistakes today so during the course of me making my mistakes i said you know what man i came back to atlanta again i made a bunch of money too in between though but then i kept losing it i come back i turned down and i bought a place in the duluth duluth i purchased the property i did my acquisition correctly so i knew how to buy then i figured i had a way of working with a contractor but i didn't know how to protect myself i know now how to protect myself right but long story with the contractor working in between trying to skip the process again not that i lost it all but i lost but i was able to get a check for 90 grand okay when i got the check for 90 000 i go back home my father says to me robby you finished right you're done with this cause at this point listen i'm sitting back like whoa like you know what that's one that means that you are so committed because i mean you got spanked yeah three times yeah and nobody could tell me i can't do what i want to do right i don't care who you are so i got the ninety thousand my father says yo rob are you done you give up right just like they train us all go to work yeah and just do just do that i said to him nah dad i got it i know what to do now and this time i knew what i had to do now so i lined myself up with everything that i was skipping everything i was doing everybody that robbed me and i thanked them and i mean i'm dead serious i thanked them they made me an animal i'm a nice guy i'm a nice guy but they made me an animal so people that watch my instagram when they're looking at my instagram me and my brother was fighting for years about even touching social media i'm very private if you go onto my social media you don't see nothing personal i don't i purposely do that it's about the business so when you see me on instagram if you first look at the page it looks me aggressive i am aggressive because it's that serious let's stop playing this game is serious so what i decided to do is i wanted to start investing again but i said you know what let me keep it real with me i'm in new york the market is what it is yeah i could survive it if i want but let me take the money that i have and let me go just outside so that's when i started going into connecticut i started buying connecticut people talk about connecticut now because of me and my genre of people i talk about not that i make connecticut you are the kenyan connecticut no i'm not the kid i'm not the king but what i started doing i said before i spend money because the easiest thing in this business is to spend money absolutely and i tell everybody if you if the easiest thing to do in this business is to spend money get approved get into debt and it's that difficult just imagine how much more difficult everything is else is in this business yeah so i said you know what before i spend my money let me do my homework so i started going out to areas and i started befriending people in those areas in my entire life i've never been to connecticut in my life all the years i've been living in new york and i started going to new york in connecticut so around 14 or so 15. i can't remember exactly befriended some people and i started going out there and hanging out so i could understand the area that i'm about to invest in that's why i tell people that are big about investing out of state i say be careful what do you know about the area that you're looking to invest in say that again have you taken the time to go out there and understand what you're about to do instead of listening to what somebody else told you to do so i said to myself you know what robbie you lost all this money and i lost hundreds of thousands of dollars hundreds of thousands of dollars the average person would have never got up with that and i said you know what man every time i lost my money i was betting on somebody else yeah every time you never forget everybody i want to go talk to and i'm not knocking anybody i'm just keeping it honest i bet it on that realtor to educate me rather than me educate myself i've been on the on the attorney to cross my eyes cross my t's and dot my eyes versus me understand why is he he's telling me that these fees that don't make no sense is okay i started educating myself right so when i started educating myself in the market that i was doing then i said you know what this is the reason why i want to come over here and start flipping or i want to start buying whole whatever i just i i started doing at the time so then i said to myself if well be every time you ready to spend money you gave it to someone else to spend in some way and they lost it why is it every time when it's you who have to do it you always say nah i'm not gonna do it why is it that every time any one of us when we talk about doing anything right and you're to do it you won't do it but every time i do my events i have a line of people that say to me well i got fifty thousand i got a hundred thousand dollars what can i do and if i was on that type of time i would i would i get so much money i tell the people i don't want your money i make enough money i make enough money and i said to myself if i'm gonna start betting on me let me lose the money at least i tried truly tried yeah and i started betting on myself and that's when things started changing for me when i started betting on myself yeah you bet on black and you bet on yourself let me tell you something yeah man you know what i love the most about what you just said is you said i inserted myself in the community i bet on myself and i'm a real estate broker i'm a realtor but at the end of the day it is your responsibility to do your own diligence someone can point you in the direction and i can spit off these stats take those same zip codes google it yourself research yourself go to that zip code yourself i tell my clients all the time especially especially out of state you go test the temperature go over there in the daytime go over there at nighttime go to dinner yeah because let me tell you why you want to go to dinner just choose a random restaurant and go to dinner these are your neighbors this is your neighborhood yeah do you like it because anything looks good when you're just looking at one house during the daytime so i love that you said that because when you said when you said that that's partially what i did um i went to the corner store to go get me a sandwich see i'm you know i'm serious and i would talk to the god corner bodega and hang out i would dress the part we you know matt how it is it's time to get hood i got the tim's on with the hoodie on yeah it's time to be professional i could put on a suit if i have to let me play it apart so i could get so that i don't intimidate the people or make the people feel awkward i'd go into the barber shops and i wasn't even looking to get a haircut let me just hang out in the barbershop and act like i was i'm this is dead serious what i did then i said you know what i'm going right there that's what i did and let me tell you how long did you do that recon though when we're talking about the um flipping or just in general just just before you decided he was gonna flip or whatever when i started flipping in the area that i dived in i was probably doing that for about four months okay and when i was doing that for four months i'm traveling from new york to connecticut leaving my house at 6 30 seven o'clock in the morning so i could beat the traffic so i can get over there in time so i could do what i have to do in the meantime i'm telling everybody yo guys this is what i'm about to do this is where i'm going and especially to us brothers nah well be i'm not driving that far the hour and a half i'm not going to go that far and i said but you know the sad part about it is if it was a beautiful woman oh yeah you're going to go you understand and then i also said we all want to be fancy driving around i got nice cars too you know but god gave us the car to take us to somewhere take us to a point so i said you know what let me take my car and let me take me somewhere and i did that for about four months jim and in the four months i was doing that i was studying and as i was studying i was building my relationships with the realtors they worked for me so i started interviewing my realtors and i'm telling the realtor this is what i need you to do for me and how i need you to do it for me either you with me or you not that and i'm dead serious that's how i approached it realtors don't get educated on how investors move that's exciting don't learn that in school so when i'm talking to a realtor i'm telling them how i need them to present a property to me they looking at me like i'm an alien because they never heard that never heard it and then most realtors with all due respect to realtors are lazy today it's not the same like the realtors from before because the internet they just want to get your email and put you on a mailing list yeah basic information yeah and then you just send it out and i tell the realtor i don't want your mailing list i need you to cater to me for what i want either you won't give it to me or we can't work together get sugar gems and then after i put that i made it clear at what price point i need to be at when i put my offers into these realtors they the realtors realtors are not investors i'm not saying that there aren't realtors that do invest realtors are not invested so i have to train the people how i need them to be so while i was having them do it i put put these offers in most realtors want you to meet up with them to walk through these properties i don't got no time for that aside from that i'm not your only client i don't have the time for that yeah so i'm telling them listen all i need you to do and real quick for everybody to understand is just three things i need them to give me give me what the value is and some pictures that's all i need okay after i could see the pictures i'm gonna tell you a rough estimate because i did my homework i went around the neighborhood i met with a bunch of contractors what's the average that you're charging to do these properties if it's a 1500 square foot home it don't matter if it's a colonial if it's a cape 1500 square footage of 1500 square foot doesn't matter right so the average repair cost is gonna be the same so we don't have to talk no more give me the arv give me some pictures i swipe through i know how much i have to offer now i put my offer in and i sit back at home so while i'm putting in my office and i'm telling the the realtor just trust me i'm gonna make you a lot of money just trust me they're looking like i'm crazy but all i gotta do is get one deal yeah yeah when i get one deal and i close then they know that you for real yeah so then now for everybody that's putting out your office i ask you on average how many offers you put in most of y'all gonna tell me and i already know it's gonna be in the last one how many offers you put in if you're lucky you told me two i'd be surprised yeah i'm doing 20 a day sometimes today you understand so once i got that realtor under my under under contract for a deal i started off with a contract but the contractor was a guy that used to work for me in new york that wasn't really much he really didn't do the game the product i mean um the business like that and it was just him and his father i didn't have an entourage of people like i have today which is him and his father i took that one deal that i got and i focused on that one deal i got another contract i'm gonna work on that one deal that one deal took me four or five months to get onto the market when it got on the market it eventually sold and i made i think it was maybe twenty five thousand dollars after all your expenses after all expansion i was so proud of myself of course because you saw it through i proved it that i could do it yeah right so i made 25 000 and i'm saying i made that 25 000. i didn't take a dime out of it i took the 25 000 plus that 90 i started off with and now i have 90 plus 25 and i jump in again i just went i just went crazy how many properties are you on right now i own a lot man i'm don't the number but the reason i don't touch that too much is because there's a lot of negative things that i've come that have happened in the process of of people either trying to derail deals that i've had if you notice i don't put properties for sale that i have yeah yeah because i've had people actually literally uh uh um derail my deals from home inspectors that are just mad that don't look like me that are mad and wondering how the hell does this guy own this prop in this neighborhood and they just happen to see that i post it on instagram so i don't really speak too much on that but i'm blessed you know and i'm i'm thinking i know the receipts no you know yeah yeah yeah you know me and matt talks often yeah and i'm and i'm always showing him your man look i just picked up this one right here look look i just put another one look man i'm close on three more so matt knows but uh yeah you you you i'm i'm just really vigilant because i just want everybody understand it's a beautiful business you can make a lot of money but it's a lot of work in between it right and the thing that kills me is that how many of people lead with the success stories that's presented to all you guys and what they do is they just want they make you salivate and they showing you walking in with uh uh uh gucci sneakers walking through a a construction zone where the hell is that happening you know what i'm saying what the hell are you doing pulling up in a bentley or rolls royce in a construction zone you know but it's done to market to you guys because they know that it's going to get you and they say hey i can do that too which you can you can do it but you but what you you you have to sacrifice so much in between to get to that reward and a lot of people aren't willing to do that you know so can i ask a question absolutely because i know you've been in this game for a long time yeah so in this current market yeah you don't got to say how many houses you get under contract every week or you don't want to talk your numbers i get it yeah you know i'm from the projects you never let nobody count your money you always got to move a little different yeah but let's talk about how you're navigating this current market you know we know that it's harder to find deals i i can imagine like across the country there's low inventory there's a lot of demand what are the rules that you have now to find these properties and be able to still create a passive income um well believe it or not the uh this has probably been my best time ever doing the pandemic i've acquired more property first off i did i have a strategic partnership that that that has been a huge blessing to me and i've been a blessing to him and i think this is the most uh flips that i've done ever um during this uh period and then also the rentals it's been this is probably the best of of performances i've had ever in my in my career at all so you're saying from the rental standpoint what about from the acquisition standpoint both sides okay on average um i was doing i started off like i said with the one home then i did two homes a year then four then i started averaging on my own about 20 houses a year flipping so my average returns were netting me after expenses which is extremely important everybody understand was no less than 75 000 plus so you could do your math for what i was netting in my pocket this year we were on course to do about 40. 40 flips and they're all netting 115 120 per rules now you know people want to flip where are you finding these deals because i know you're not finding them with a realtor ain't no way yes i am yes it is yeah i am where the same properties that everybody looking at the same ones that i'm looking at the thing is is that you have to understand your numbers your numbers don't lie to you no matter how much you want to force a situation to work i tell everybody you do the math i i school them all on that at the end of the day when you go down to the bottom when after you finish calculating the math is what the math is and it's either a deal or not and also two people are leading with worrying about what others think you should pay something for you worried about i'm not going to put in my offer because there's the seller is selling it for this amount of money or the realtor is telling you i don't think that they're going to but if you do absolutely nothing you're not in the game i don't care about what anybody wants for their property my number one question i need to know is what the value of the property is that's it that's my number one question flipping buy and hold as long as i know that i do my math i don't care what they listed it for i put my offer in i don't care what they're listed for you i can't tell you how many rentals that then mack knows mm-hmm then i talked the other day i just picked up another commercial property god bless you thank you right that property was on the market for i don't know four months five months funny thing is perfect i was gonna buy that property that's the funny thing for four months five months it was on the market for a little while so of course and i'm looking and a bunch of people looked at it a lot of people said they're going and that's i'm going to get it i put in my offer they laughed at me i keep it moving i'm still buying put them off again no no no finally i put the mark the interest rates dropped a little bit right so since interest rates dropped a little bit that means i have more room to give up a little bit so i went to them and i said listen here i'm already approved i can get the deal done i already own another one down the block i own another one two blocks go around the corner i own that one too and they accept it and i got it right and from the door from the door from the door when i before i even own it i know how much money i'm gonna make over a month i already know how much money i'm going to make offer because i did my math so without a question i know that that building is going to generate x amount of money a month without a question so now for me it's not gambling anymore it's you're strategic 100 so do you teach anybody these calculations like let's just say let's let's take it from the commercial standpoint just the one house standpoint when they're evaluating one house like what number should they be talking about residential or residential residential everything is industry standard matt talks about it all the time everything is based off of a 70 value everything i don't care if you're talking to a hard money lender i don't care if you're talking to private money i don't care if you're talking to um conventional they all base everything on the 70 of the value of what a home would be or is completely renovated or new that's what you need to understand based off of that so what it's going to cost me to repair that's my offer i don't deviate from that i don't deviate from that if it's too far above what i need to offer i have to walk away most people will do one will buy a property and then even though the math is telling them stop you got somebody on the hook to even have a conversation with you you don't want to let it go so you're going to force and make that deal happen you walk you're done but you're getting all properties that need rehab you don't buy on the retail market i never buy on a retailer you guys know i got to make the distinguishment no i never bothered when i'm because you're an investor yeah if you're looking at but i didn't understand that at the beginning yeah i didn't understand i didn't have a big homie i didn't have somebody that looked out for me everything you see i'm doing now i'm first generation millionaire in my family yeah first generation nobody ever did it you know what i'm saying and it took me it took me and me and my twin brother when we talked about it i referenced my brokers we do everything together so probably is here he's right there shout out to twins hey twain it it it was so it took me so long to openly admit it to myself about saying the millionaire because you you you you almost have that guilt yeah or the way that people would treat you because of it you understand i'm saying yes but um as far as with with i don't buy retail i look for either distressed or underperformed and if you take the time out to understand the market that you're in that's why people ask me all the time what market should i invest in i said any market you choose you drop me in any market i'm gonna make money i guarantee you give me some time and let me repeat what i did let me come back to stone mountain i'm going to tell you this when you said stone mountain and i could tell you i sat here when you told me about when you just said the four-plex i immediately said to myself 500 a month i know that area i completely understand that area and there the crazy thing is have you been there though they're changing they change the other side of stone mountain it's called scottdale now or they changed the name it's a whole another little city on the other side of this of stone mountain and yeah they changed the name because it's so close to the city and the value's up y'all look up scottdale it's up next and i can tell you what's up next i had a client so crazy we got under contract six six months ago same house same exact house it was like probably like 500 it's retail retail market wow same exact house today is selling for 8.49 wow wow today at this moment so i definitely i can see you doing that in stone mountain because they're going to have to go over the bridge you have to go over the bridge so that's another thing question i have for you sure you're saying you can do this anywhere anytime so what are what is this three simple things a person saying i want to invest like i'm not i don't care i want to be an investor this is what i want to do you inserted yourself in the market you ran the numbers you owned a 70 let's talk about these contractors because they they actually you know what i wish i had a hammer i wish i knew how to drill i wish i knew how to lay drywall i feel like if i knew how to do all of that i could flip 100 houses a year 100 how do you find good contractors that's the key the the good contractors are important they're out there i think the biggest key honestly is understanding how to protect your money that's your number one thing how do you protect your money that that's something that they have to come to the course okay you got to pay the cost for that let me let me tell you they can't f with me and listen and i'll pay a contract 100 up front if you want i i pay them 100 if you want i'll give you 100 because there's absolutely nothing that you could do to me nothing you could do and a contract is intimidated by that because they're like like i'm telling you here's your money just give me my property in a timely manner if you're not going to give it to me there's recourses and mind you contractors want you to be stupid they want you to be threatening they want you to put your hands on them that's better for them because if you do they get to keep whatever that you got they gave you already and then they put a lawsuit on you or utilize that as an excuse to say i don't like the way you spoke to me so that's the reason why i didn't pick up your phone yeah that's the game that they play yeah you understand the number one rule i tell any investor if you control the money you control your project if you're not controlling your money you're you're essentially having somebody else that has no ownership in your situation controlling your situation so how many people had a guy working in their house knocked everything down yeah all of a sudden he comes up with a change order and says you got to give me another ten thousand that implies if you don't he's gonna walk out and you're so scared because your place is in shambles then you give them the ten thousand i wish you would do that with me they don't play that i wish because there's there's absolutely nothing that they could do to me but i know you're not gonna understand it but you guys utilize it every day but what you guys utilize what i'm talking about you utilize that for other things leisure i use that to make money and then i can have some leisure time but that's a whole other conversation with that man super gems i i know what you're talking right now and i'm just like damn this guy's really killing it right now so all right your strategy right yeah you lost everything three times put me on anywhere in god's green earth i tripled my worth you went to connecticut brought that one house turned 90 made a 25 000 profit you're buying all these flips you went from 20 flips to now doing 40 flips yeah and then now you're using your profit from the flips to buy your rental property 100 that that's not that's not completely my strategy that so you're doing for every flip how many rentals are you buying well before i started um buying rentals my focus was the first i was building up my capital so for anybody you have to understand i know you guys here a lot of people speak about no money no money out of pocket different things like that it's a a a metaphor if i'm using if i'm using the right word but it's not true you have to have money to be in business oh can you say that you have to have money to be in business oh but a lot of people they put this facade in front of you and that's why you hear people hitting you up matt and you up i'm sure talking about after they effed up their personal credit hey i want to open up a business credit yeah right and i tell everybody nobody f suck they personal credit for free nobody does it everybody reap the benefits somehow or another for with to f when you effed up your credit now when it's time for you to invest to fix your credit you want to find the the easy way out and open up business credit you're not going to just open up a business credit i don't care what nobody tells you just open up a business credit and now you got 50 000 to play with it doesn't happen like that yeah you understand so now what i did is i was focusing on building up my capital while i was building up my capital i wanted to do a blitz i want to have so much money that i could go and start buying up my rentals buying up buying a buying i didn't want to just buy that was just me i didn't want to just buy one rental and then wait two years three years and build up some money and buy because the market starts moving because a lot of my rentals that i bought even two years ago was damn near double the value yeah that i bought two years ago so imagine you're waiting around i didn't want to do that so i built up and at one point i built up so much i had i had i had a a i had a nice amount and i just started buying like candy man and when i was buying i wasn't buying retail because i had the money my goal was i'm gonna buy and i'm gonna buy with a down payment where i don't have a pmi and i don't have uh i want to have the best position that i can of acquiring the property in terms of you you're a mortgage guy you know what i'm talking about my credit was strong my brother got me right my credit is in the 800s i have a a a large liquid amount of money that could be sourced yeah right yeah right and then i would go and i would focus on buying those rentals knowing i'm putting 25 or 20 well now it's 25 or 20 down my goal wasn't like a lot of the people to be in school today i don't do that i don't go to put my money down for me to then put some money into it and then three months later refinance and and take the money back out i don't do that okay you know what you mentioned that and that is something i'm glad you brought up again because i would love for you to just speak about your experience because a lot of times people do leave with the shiny thing like oh everything was all good but sometimes when you refi and pull that money out and you got that higher monthly payment sometimes it just doesn't work out so talk to us about ex like a little bit about what happened to you and why in this particular market you said you didn't agree you said it with your chest you told me you didn't agree and let me know why well the here's the thing right we all have the money we all got the money to buy a property and buy it respectfully everybody says they don't have the money but i went through that car lot and there's a lot of down payment money yeah out there yeah all right so you have the money it's what you choose which chose to do with your money because most of us want to look the part instead of being the part right so my goal for me was that i understood that you have to do what you got to do to get in so anybody that got to do the fha three and a half percent down you do what you got to do to get in but to be talking about to scale you need capital okay oh i know i speak about it all the time we are one of the generations of people that want to do the most with the leafs and we have to get out of that mindset when you're trying to scale you can buy that first property with the lease yeah but how you going about you can't buy the second and third 100 financing and 3.5 down and down payment assistance on your mindset because you actually it is illegal it is unique as an investment property you have to put money down that's right i don't care what nobody tells you and don't listen to these people they're going to think going all of y'all going to jail every single one of you i'm swearing up and down i'm just going to put the water bill in my name and i'm going to buy the house i'm gonna live there and get the 3.5 i know people that went to full jail literally for mortgage fraud and and they will do it and that's what anybody needs and guess what it's happening again today because then because they think they're listening to that's right the internet and my so my goal and that's why a lot of the people that buy today they buying and they're buying too tight so then they're barely cash flowing and then remember like i said everything is on you so whoever everybody that was part of that deal to get that deal done when you're at that table they're like wolves waiting on you because and then everybody eats before you yeah as an investor all of the people that works for me and my partner eats before i eat gets paid before i get paid i better get paid the line [ __ ] because i took all the risk yeah so that's what's happening with the people today they're they're doing that and then you're too tight then you're wondering why you're not cash flowing or then you're wondering why the roof is leaking which is going to happen or your boiler break it's going to happen or your tenant doesn't pay it's going to happen oh and and and and the the showers running from the second floor to the front it's going to happen right it's going to happen so then when that happens how are you going to handle it so my goal and people people matt knows because matt knows when people hear my numbers they don't i show when you come to my events i show you my bank statements i show you my mortgage statements and i show you my monthly deposits if i'm lying i give you your money back i tell everybody that not only i tell them that i said look at the properties take the addresses if it's not mine i'll give you your money back right so so on in addition to that when i'm netting when they will go and talk to someone else about what will be says they're like oh he's lying that's impossible he's making that kind of money so come and see yourself i'm gonna show you so my goal when i do my rentals it sounds crazy one-third of my property covers all expenses taxes insurance mortgage everything the other two-thirds is my profit my sixth unit two-thirds is two apartments two apartments covers everything the other four is all my profit my three units one apartment covers everything the other two thirds is my apartment i'm upscreaming my profit that's my focus that's my goal so that's my game plan so when people were telling me it couldn't be done i'm doing it i'm doing it so now when i have other people now coming into the market especially you new guys i'm so afraid for you guys are buying and you buying on the same block for the same property i bid on and you bit up way more than me and you giving each other high fives like you did something good i introduce myself to you i let you know that i'm around so when you about to lose it i'm gonna buy it all for you and i mean i'm dead serious so anybody that sees with me when i'm telling y'all i'm serious about this i'm dead serious about all this this this fluff yo i wear converses i wear converses that's what i that's that's what my g is about my account you have people that are walking in with their whole wardrobe that i'm like you're my friend that that would have been the money that you would have paid for for the inspector that you didn't want to pay for that when you bought that gems you people think it's a joke so when i'm the way that i am about it because i'm like listen yo you don't want to be where me and my brother was that you every suicidal thoughts because you lost it all it's it's that serious so that's why i tell everybody listen take this serious job take this serious it's important for you it's important for your family it's important for the people that said that we shouldn't be here the neighborhood that i'm in is a neighborhood that it was on the news years ago where they were fighting and picking it to make sure that we couldn't be there and i'm the only one there my ferrari's in the garage you know what i'm saying i take this seriously so that's why i want to stress with everybody is that there's nothing special about me when i first walked in here i was just another guy coming in here yeah nobody knew nothing about me yes i'm saying there's nothing special about me my brother any one of us uniqueness of course obviously yeah of course yes right a superpower the difference is between me and you and the rest of us is that we took action that's the only difference yes and no matter how many doors closed on us we said i'm gonna keep going and and for the people that i would wish that is beyond these stages promote to the people the losses that you make that happens to you there's nobody on doing business at scale like what we're doing that is not taking losses during the course of the year that is a hundred thousand sold nobody's i'm i i brag about it yeah damn me and my brother about to sell the property right now it's selling on wednesday right well good finally right we're selling on wednesday we went through hell to do it if it would have been eight years ago i wouldn't have known what to do we was able to navigate through the hell and at least break even yeah we out of it that's the part and i'm gonna promote that and brag about that yes i'm saying there's nobody that's doing this business to scale that during the course of the year is not taking losses oh yeah doing this course it's part of the business so we got to talk about this because i already know i already feel like i know this is the rants and jim yeah we need a rant about your business and a gym about your business now you already kind of started off with the rant but listen playboy i feel like you want i want you to kind of emphasize on that because you know talk about the rainy year industry what is it something that you're seeing in your industry that you're just like look the people are leading with their victory stories that's what they focus on the victory stories and who who look at me and and but they're not telling them the true path of it the the fluffing of the numbers to make a pair because anybody that's understand the game matt knows you know you that's impossible oh i know it's about that's impossible that doesn't that those numbers don't even make no sense yeah yes i'm saying those emails don't even make any sense and i would just wish that if you guys are saying my rant is that you really want to understand and learn this business then truly educate yourself truly do it truly do it don't come here and hang out here and then posting on ig showing your peoples that y'all were doing something just to go back out there and do absolutely nothing come on come on what's your gym play boy what's your gym i don't even feel like this was an interview honestly this [ __ ] was assignments you take it past my best 197. come on pastor justin jim i would just say i i i promote i tell everybody if i could do it you could do it too there's nothing special there's nothing special about me man other than other than this is what i wanted to do you know so um if i could do it that you guys can definitely do the same thing be relentless be an animal about it man and stop [ __ ] stop chasing other people's lane stop chasing come on come on because here's the thing that's wrong right you can you can pick any aspect of this business or any business and there's somebody making extremely a huge amount of money in it and then you could choose another and someone that's not right so i'm i don't own i'm working on buying you know 100 unit building i'm working on it but i guarantee you i could be making if not more with the four units eight unit buildings that i have as that person it's irrelevant whatever you find your lane that you feel passionate about is very easy to get deep deterred because matter is going to show you that he's doing this and what he's doing to his level and you're going to show she eleven then also i'm like i'm gonna do that all right so you you jump me this is me no i know i know when i buy that property that property there's gonna make me x amount of money a month without question it's gonna make me x amount of money a month and every time by the time i buy it closed that's 16 i showed you your math that's probably going to put in my pocket bro over five grand a month over five grand a month net i and i i don't even own it yet and i know i'm gonna make that kind of money i know i am without a question so that's what i want you guys to do is to stay focused on your goal if you want to be just a realtor you want to be a mortgage guy or if you want to be whatever like that if that's what you want to do stick on that and and stay relentless on that until you start breaking through you know man i i i i love that but i got one more question before we we wrap this one up well because we said something one unit you buy three unit one unit pays for everything two units is your profit correct right are you doing cash tenants or programs oh the program let's get into that really cool here's very here's something that's extremely important i know people have uh their concerns about section eights i have a few section eights or other programs um the city that i'm in loves me because most people are coming into the game especially let's say landlords they're leading with how much money i could make the greed so that's why when you buying the property you see landlords that'll buy the property and just slap paint on it and say i don't give a damn i don't live here i used to be that guy too then what i decided to do is i said you know let me change my mindset and let me become a server instead of a consumer so i started be serving and i started reaching out to the different programs the different social workers knocking on their doors and saying hey how can i be of service to you what do you do then it would i i i house women that are battered uh house homeless families they maybe lost their homes in a fire i have section 8 and i cater to what they needed so then when they go to my apartments and you'll see my competition in my area everybody has the same uh dry walls and uh um old countertops and things of that nature i spruce mine up with the flavor the recessed lights it didn't cost me that much more money so then now when the social workers come and the inspectors come and as soon as they open up the door listen my like that they're gone not only that they're gone i demand more money than what the current market is providing that's how i pushed my numbers up so then now now my name is on the bulletin board so when a new tenant comes in they say oh call that guy they call that guy he has some really nice apartments for me doing that i was able to increase my rent so if the average rents in the area is 900 i'm getting 1200. ask about me they're going to say he's lying because they ain't doing it i'm getting that and look to that i'm uh a testament to that right yeah see well be so humble he like i'm asking certain questions i'm like yo please tell him he's telling him right he's not going to tell you but the reason why i'm investing in connecticut is because of this man right i started seeing his his page my man june plugged me in with him a couple years ago and he's like yo just come to connecticut come to connecticut what [ __ ] i'm going to connecticut for bro like i don't want that i don't want to go who goes to connecticut but then every every morning 6 a.m like clockwork it's 6 a.m yeah closing on this closing on this closing notes look at the money look what the program paid me i'm like the [ __ ] like you serious bro so i closed on a crib out there um like a month ago and it was because of him so i went to his event um that he had with his brother lance and his um his twin and i'm there he's like yo i'm gonna introduce you to the program people i said why aren't they here say yeah they love me no that's exactly what he said he said they love me of course they're here so the program might come she said oh well we talked so much about you you closed yet we got so we got we got the tenants are still there oh you got to get rid of them are they paying are they on time cause i got some money for you i said what i said you're well be son what's going on here no i said you wasn't bsing me he said no i got you and i and circle back these tenants are closed on this property don't be cash rich in house poor i mean house rich in cash poor because i close these tenants haven't paid me a dime yeah the it started leaking already that's right i had to hire his company his construction company come fix a leak already it was a big hole in there i mean it's a mess but i'm so happy like i am excited you're in good hands because he's going to make cuz i'm going to make 400 more than what they was already paying without a question so and he said you're mad this house is worth 100k more than what you paid for and i'm like he's like you brought you brought it right you brought in the right part of it you listened to like i'm look i know what i'm doing i invest but i'm not afraid to take mentorship either you know you always got to be learning because i want to learn from everybody i don't have an ego you know what i'm saying and with that he's like yo matt you're good i got a hole in the wall i'm like wow what the hell is going on in connecticut out here these people these people are crazy he's like nah don't worry about it but the program lady i met at the event and she was like yo i got you as soon as they're out cleaning up welby style and i got you x y z per apartment i looked at the numbers i'm like damn that's like an extra fifteen hundred dollars on top of the two grand i was already going to make or or for one deal so everything that he's saying to you guys and this is why i told canada we got to bring my bro up here because what he's doing and he lives in a high court state like new york we're both from new york we both live on long island now and he's investing out of state but he's being smart about it and he's not all over the place and even he tells me yo matt stop going to cleveland stop going here stop going here matt was trying to get in chicago so bad he takes me in the middle of the night kiana find me most our family [Music] my goal was just to have multiple doors everywhere right just so i'm so i'm diverse he's like nah just come here i'm telling you i'll make you more money here than you will there so now just with the first deal i'm like damn this dude wasn't lying if i could add to it too um what's important um we we see with our eyes and a lot of times when we see you think that just because something is big it means better right so i i was given an example that if i showed you this big building and i told you that i could give this to you for a million dollars and you'll make five thousand dollars a month or i'll show you that car and you'll pay a hundred thousand to make five thousand a month which would you take most people will say i'm gonna take this building of course right and at the end of the day i don't care about any of that i don't care about the way a side the size is or not i care about how much it's gonna put in my pocket so i have a for example a six unit i have a friend of mine that's buying a 12 unit for 1.2 million dollars all he cares about and what he keeps bragging about is how big the unit is how big it is that me how how that's how he keeps talking about how big the unit is and i keep talking to him and i said but bro how much you gonna make out of that unit he told me he's gonna make about five thousand dollars a month so i said to him so let's just do the math so real quick math for you guys 20 of 1.2 million is how much don't get me counting 300 000 closing costs so he's going to be in debt in total 1.2 million dollars to make 5 000 a month so i showed him hey bro i just bought that six unit with my programs i paid 280 000 for it i put 20 down like you put your 20 i put 70 000 down i'm making 5 000 a month income so do the math that means i can buy five of your buildings and instead of making five thousand i'll be making thirty thousand dollars a month respectfully for the same 1.2 million dollars and you know what he says to me but yo it's big bro and that was it so just because something is big doesn't mean that it's better just because you have a big business doesn't mean that it's better the reason why i could generate the kind of money that i make is because i'm nimble everybody works for me i keep them busy but i don't have no employees technically so when things got happened with the pandemic i was able to scale back and still make the money i'm making yes i'm saying so just because you want to build something grand and big so everybody else can see don't you should lead with how much you could put in your pocket versus how big something looks so that the world can say man yo he got he got a big old whatever it is you know so um i think that's something that you you guys it's very important to be careful yeah super gym you know tell the people how to find you right follow you or your information i need to find you right now um well uh everything in social media is at my best 197. so a-t-m-y-b-e-s-t-197 and um if you want to get yelled at every morning i i have a journalist yelling every morning about real estate and um um if you want to be inspired and pushed that's what i do and then um also you know my events i mostly i do them in connecticut so i do the ride-alongs in connecticut where i take people um out with me and i'll have 50 people or so that will come and i have a bus and i take them to four or five current flips that are going on at different points of the project help to show you new guys the ideal kind of flip that you should be buying not these things that someone told you this is your perfect flip and you is you're gonna get eaten up so i i walk you guys through i show you guys the cost of it i show you guys my bank statements of me paying out so you could see and i'll show you guys my ultimate profits i'm gonna make and then i'd show you guys some of my rentals in the area and how i took the flips bought that rental and how much money i'm making off of that and um that's what i'm doing man shout out to you yeah good episodes man make sure everybody tapping um this has been a a dope dope episode man thank you for flying out here i appreciate you i was hoping that you guys even actually being a part of the rants and jibs live experience and um you know you're gonna hang out a little while so look everybody in the audience chop it up with the man and um everybody at home you should have been here wait a minute you gotta do your outro so matt garland nmls number five eight seven zero zero better known as mg the mortgage guy and i am kiana watson broker extraordinaire license number three one seven five seven six thank you guys for attending the rents and gym all right peace [Music]

Channel: Earn Your Leisure

Views: 18,443

Rating: 4.9667358 out of 5

Keywords: earn your leisure, business, finance, sports, entertainment

Id: u5wG6nTYck4

Length: 61min 38sec (3698 seconds)

Published: Wed Aug 11 2021