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Dec. 16, 2024 - Fresh & Fit

01:30:59

How To Wholesale and Fix & Flip Real Estate!

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Time	Text
	Thank you.
	What's up, guys?
	Welcome to Fresh Your Podcast, man.
	It's Money Monday.
	We got Ryan Pineda in the house.
	Let's get into it.
	Let's go. Let's go.
	Let's go.
	Let's go. Let's go. Let's go. Let's go. Let's go.
	Just saw you guys last week, so it's good to be on your show now.
	Yeah, no, absolutely, man.
	Because I think this is the first live stream we've done with you.
	I think last time we did something pre-recorded, so it's great to be able to have you on where it's live and people can ask questions and all that other stuff, so this is way better.
	Oh, yeah.
	Yeah.
	I have no idea what to do.
	and getting into this whole social media world.
	Yeah, so I got drafted by the Oakland A's in 2010. So, you know, I never really wanted to get into real estate or, you know, do any of these other things.
	But, you know, in the minor leagues, you don't make a bunch of money.
	I mean, I was making $1,200 a month.
	Damn!
	Man, it was crazy.
	So, I had to figure out how to make money on the side.
	So, I got into all types of side hustles.
	I mean, I was...
	Flipping couches.
	I was substitute teaching.
	I was doing anything to make a buck.
	And then eventually, I got into flipping houses in 2015, and that was where my life changed.
	I flipped my first house, made $25,000, and it was like, dude, if I just do that over and over again, it's going to be, I mean, who knows what we could do.
	Can you take us through that first deal, how you found it, how you did it, and then some of the mistakes that you made on it?
	Yeah, so that first deal, you know, I found it on the MLS. So that's just a typical property you would see on the market, like on Zillow today.
	And, you know, they wanted $115,000 for it.
	You know, you miss 100% of the shots you don't take.
	So I just lowballed them and offered them like...
	$80,000.
	They said no.
	Eventually, got it under contract for $99,000.
	I bought the deal using what we call hard money.
	So a lot of people don't really know what hard money is.
	Essentially, it's a real estate investment loan that doesn't really require good credit or tax returns or anything.
	Essentially, as long as the deal is good, they'll give you the money.
	And so I got a hard money loan.
	It's high interest, short term, only for a year.
	But I was able to get the deal.
	And that deal actually didn't even need much work.
	I mean, I just basically painted it and threw it back on the market for $135,000.
	And so I ended up selling it like second day on the market.
	And so when it was all said and done, I bought it for like $99,000, sold it for $135,000.
	And the total net was about $25,000.
	Wow.
	And at that point, you were like, this is what I need to do.
	Oh, yeah.
	I mean, dude, at that point, I had hustled so many different ways.
	I mean, I was flipping couches and making $200 a couch.
	A lot of people have started flipping couches after I made YouTube videos about it, but that was just how I was making money.
	And even before that, I mean, I wasn't making any money in the minor leagues.
	Literally $1,200 a month just trying to survive.
	So house flipping changed my life forever.
	How did you find your first deal?
	Was it someone like a mentor showing you or you just found it by a way of friend?
	Well, bro, back then, there wasn't any TikTok.
	You know, Instagram wasn't this thing that it is today.
	You know, nobody was really making YouTube videos about it.
	So it was kind of the old-fashioned way of just reading books and making it happen.
	So, you know, I read some books.
	At that point, there was a website called BiggerPockets that had a podcast.
	Yes.
	And so that was the first time I listened to a real estate podcast.
	And so like all those things were enough for me to get started back then.
	But I'll tell you, it's a lot different today than it was, you know, 10 years ago.
	Yeah, so this is roughly 2013, 2014 when you got your first deal?
	2015 was when I first started flipping, yeah.
	19 years ago.
	Yeah.
	Isn't that crazy that 2015 is now going to be 10 years ago?
	But he's saying there's a will, there's a way, so he found a way to do it.
	No, absolutely.
	So, real quick for the audience.
	So, can you tell us the difference between wholesaling, fixing and flipping, and then just buying outright when it comes to real estate investing?
	Yeah, so fixing and flipping would be, you know, what I did on that very first deal.
	I'm going to go get a loan, hard money loan, typically short term.
	You know, I'm going to buy it with the intent that I'm trying to just fix this up, get in, get out, sell it, and make a profit.
	You know, that's a typical fix and flip.
	And that's what I started doing from the beginning.
	Yeah.
	What I didn't really know back then was wholesaling, which is how most people get started today.
	And probably a lot of people listening to this would be interested in wholesaling.
	So it's essentially like fix and flip where you're going to go and look for deals.
	That doesn't change.
	So everything's the same in the beginning.
	You're looking for a deal.
	But instead of having to go and buy the deal and fix it up and then sell it, you just sell the deal directly to the person who does all that.
	So if I'm a wholesaler, I go find this really good deal for, say, $300,000.
	And then I know that...
	You know, Myron's looking for a property that he wants to fix and flip or keep as a rental property.
	And so I know Myron's willing to pay $320,000 because even at $320,000, he's still going to make money.
	He knows he's going to fix this thing up and sell it for $400,000.
	And so what happens is I just get the property under contract and I sell my rights to the contract to Myron.
	Yep.
	So I didn't have to buy it.
	I didn't have to fix it up.
	I'm just selling my rights to the contract.
	And then Myron just pays me the difference between what I have it under contract for and what he's willing to pay.
	So if he pays 320 and I have it under contract for 300, I'm going to make $20,000 without having to fix it up, buy it, put any money into the deal.
	And all I got to do is just get really good at finding deals.
	Yeah.
	And that is kind of...
	I've noticed that's like the main way everyone gets their feet wet in the real estate game because it allows it where, unlike the other different pursuits, you don't have to have as much cash into it.
	You just got to put more time in, which is finding these deals than bringing them to...
	To buyers.
	If someone wanted to get started with wholesaling now, obviously it's a little bit more of a competitive marketplace, how do you think one should go about wholesaling now?
	Because there's a lot of people out there that want to get into real estate, might not necessarily have the cash capital, or might not want to take the risk of taking on a hard money loan.
	Yeah, 100%.
	You know, it's crazy because it used to be you had to, you know, get these loans and high risk stuff and fix it up and everything else.
	That's how I started.
	I mean, probably my first few hundred deals were that.
	And now today we predominantly wholesale.
	You know, most of the deals we do, we don't even actually buy them.
	You know, we just sell the contracts.
	There's like almost no risk.
	You make the money way faster.
	And it's just way easier to scale.
	So for me, we do a lot of wholesaling.
	And if I was somebody trying to get into wholesaling today, the first thing you got to decide is what's your marketing strategy?
	I mean, at the end of the day, how are you going to go about finding sellers?
	That's all that matters is just how do you get in front of sellers?
	And I mean, we could talk about all the different marketing strategies if you want, but there's plenty of deals out there right now.
	Hmm.
	And guys, just so you know, we're going to do a Zoom call after this with the Cals Club guys with Ryan where you guys can actually ask your questions.
	I mean, I will take some questions as well after we do the stream, but definitely get your questions in now.
	Get your Super Chats in if you've got questions for Ryan.
	Obviously, very well-endowed investor in the world.
	So nowadays, Ryan, you got your feet wet with...
	Actually, we talked about wholesaling.
	And let's talk real quick about fixing and flipping and ARVs and everything else like that.
	If someone looks at a deal, right, can you explain to them what after a pair of market value is?
	How do they analyze a deal for the purposes of fixing and flipping?
	Because I know this is also one of your expertise with me.
	It's not my thing, but I know there's guys out there that have all metrics that they use to analyze if the deal is good from a fixing and flipping standpoint.
	Yeah, so you mentioned ARV. That's a big metric we use, after repair value.
	And that's essentially, what's the house worth once we fix it up, right?
	And, you know, in the example I gave, if I was selling to Myron, you know, I said, hey, it's worth $400,000, you know, fixed up.
	So, you know, we're still going to have to put money into it.
	But even if Myron puts money into it, say he puts $20,000 fixing it up, you know, if he bought it for $320,000, he puts $20,000 fixing it up.
	He's all in at $340,000.
	You know, he's still got some other expenses, but he's still going to make good money buying it from me at $3.20.
	And so that's the key, right?
	I mean, wholesalers at the end of the day are good at really two things.
	They're good at finding sellers who are willing to sell at a discount, and then they're also great at finding buyers who are willing to pay top dollar.
	Because, I mean, like, okay, maybe Myron will offer me $3.20 for it, but maybe somebody on this live stream is like, yo, I'd pay $3.30.
	Well, I'm gonna go sell to them.
	You know, now my fee's 30 grand.
	So, um, what is the, uh, cause people like to use different, um, percentages for, um, after impair market values, et cetera, to where the deal makes sense.
	Cause you know, some fix and flip projects are a bit more complicated than others.
	What are the numbers that people should look at?
	Like for example, for me, right?
	When I tell people, cause you know, I'm a buy and hold guy, I tell them, Hey man, guys, try to get, my metric is try to get at least bare minimum eight to 10% cash on cash return on your deal when you buy and hold.
	From a fixing and flipping perspective, what are the bare minimums you would say in this market where it's fairly competitive?
	What would you say is some good numbers that people should be looking at?
	Yeah, so every market's different, right?
	How big of a return people want.
	But the metric that most flippers use is they want to make anywhere from 8 to 10% of the ARV as profit.
	So if the ARV is $400,000, Man, hopefully make at least $35,000, $40,000 when it's all said and done.
	That's what a house slipper is looking for.
	But here's the thing, right?
	At the end of the day, if I'm a wholesaler, the best person to sell to is not even the flipper because the flipper isn't going to pay the most.
	The flipper is actually going to pay the least.
	A buy and hold guy is going to pay more than a flipper, but then the person who will pay the most is the retail buyer.
	That's the person who's actually going to go live in the house. - Yeah. - So, you know, if I find somebody who's like, yo, I'll pay you 370, 380 right now, 'cause I don't need to make a profit.
	I wanna live in this thing.
	Well, guess what?
	I'm gonna make significantly more now. - Yup, yup.
	And then also you get the whole thing of, oh, I love this house, and they'll be, you know, they'll be more willing to overpay, versus like, an investor or a flipper is gonna look at it, you know, only from the number side.
	They're not going to give a shit about how the house makes them feel versus someone that's going to live in it.
	They're going to be extremely emotionally attached, which you can use to your advantage.
	Yeah.
	Well, one of the things we do now, too, with wholesaling that was never really done before, which is new, is a lot of times we're able to market the property on the MLS. Okay?
	So, like, instead of having to go find these buyers and, like, you know, meetups and all these lists and all these things...
	We can go put the property on the MLS if we get the right paperwork.
	And now all of a sudden, we're selling it to an end buyer, somebody who's actually going to live in it.
	So they're going to pay top dollar.
	So did you have something first that you want to ask?
	Yeah.
	So real quick, Ryan, let's say I'm trying to make money right now.
	It's the end of 2024, going to 2025. Is whole thing still viable, you think, as option for making money right away?
	Oh, yeah.
	I mean, that's going to be my bread and butter as a real estate investor in 2025. That's what I'm all in on.
	Okay.
	And so let's say I want to start today.
	What do I need to get started in wholesaling itself?
	Okay, so if you want to get started today, I mean, number one, you got to understand, you know, the contracts and what properties are worth and all that stuff.
	And so, you know, obviously we can help you guys out with that, but, you know, however you choose to go do that, whether it's watch YouTube videos or get a mentor or whatever, right?
	You're going to have to learn the mechanics, right?
	Just the contracts, the values, all that good stuff.
	Okay, and by the way, I saw somebody ask this.
	You don't need to be a real estate agent to do any of this either.
	You don't need to license any of that stuff.
	But once you know the basics, the second thing you need is now marketing.
	So once I'm good at, you know, I understand how real estate works.
	I understand what properties are worth.
	Okay, now I got to get good at marketing.
	So, you know, how am I going to reach these sellers?
	Am I going to, you know, cold call?
	Am I going to text message them?
	Am I going to run Facebook ads?
	You know, I've done literally everything.
	I have done TV commercials, Facebook ads, direct mail, cold calls.
	I've done everything you can imagine to get in front of sellers.
	They all work.
	You just got to decide which one's best for you on your budget.
	And once you're marketing to sellers, you're going to finally get people you're talking to.
	And so then the next step is you got to get good at sales.
	Man, I got to be able to negotiate.
	I got to be able to talk to the seller and strike a deal, you know?
	Yeah.
	And once you got a property and a contract, at that point, it still sells.
	Now I got to go sell the deal to a buyer.
	So yeah, I mean, it's really just marketing and sales at the end of the day.
	So would you say it's better to get a team than do it by myself at the very beginning?
	Or you'd say try it first yourself and then get a team?
	Um, most people start on their own.
	I mean, I always think that you should start on your own on anything that you're going to do new.
	Like a lot of people, they try to go just pure passive out the gate.
	And if you're going to go pure passive out the gate, right, how are you going to hire a team and, you know, know what to even train them on?
	Because you don't even know what to do.
	That's what I tell people.
	I'm like, dude, you need to actually talk to sellers and get deals if you want to figure out how to one day train a team to do this.
	Could you be successful hiring somebody out right away?
	For sure.
	But I think you should probably do it yourself first.
	Got it.
	Yeah, I'm a firm believer, man.
	And guys, get your chats in.
	We're going to read the chats here in a little bit if you guys got questions.
	I'm a firm believer that the first real estate deal that you do, you should do it by yourself.
	Shouldn't necessarily have other people go in a deal with you.
	Learn it from A to Z, from finding the property to getting it under contract to funding it, depending on how you're going to purchase it, of course.
	If you're going to fix and flip it or use a hard money loan, etc.
	And just do the entire process by yourself so you understand it.
	And then from there, then you can kind of expand.
	And I think buying in your town, in your city, for your first deal at least, I think is the best.
	I don't have a problem with buying outside.
	But I think for the first deal, you want to really be able to see everything and do everything.
	Do that first walk through by yourself.
	Everything is very important.
	Ryan, let me ask you this.
	You talked about hard money loans.
	This is something that, you know, me and Fresh have talked about on this podcast a few times.
	High interest.
	We tell people to stay away from them because they can be dangerous if you're not disciplined and you don't have a game plan.
	Yeah.
	So, can you tell us, like, kind of what it is, how you go about doing one, and how to kind of navigate it because this is something where it's a great tool to have, right?
	You could get some capital immediately, but, you know, it could come with some really bad consequences if you make some mistakes.
	Yeah, so, transparently, just, you know, I've done, like I said, six, seven hundred flips so far.
	I have lost millions over the years on bad deals due to hard money loans.
	So, you know, I'm over here telling you, like, transparently the truth about this business.
	Some people are like, oh, well, you know, it seems so easy.
	It's like, bro, no, like, you're right, Myron.
	The negative side of real estate investing is you can actually lose money, okay?
	So, What is a hard money loan?
	How would you lose money?
	What is the risk?
	Well, a hard money loan is very different than your typical FHA or conventional or VA loan.
	All you have to do is have a good deal.
	If they think it's a good deal, like you have it below under market value, there's a hard money lender that will fund your deal.
	In fact, we actually have a hard money arm in our company, so we fund students in different things.
	I know this for a fact.
	You don't need great credit, you don't need tax returns, all these things, right?
	Now, it's going to be short-term, so it's not going to be like 30 years like normal loans that you see today.
	It's going to be one year, and it's going to be a higher rate.
	Most beginners are paying anywhere from 10% to 12% interest.
	So if you think 6% is high, You know, 10 to 12 is what you're paying on these deals.
	So it's more expensive.
	It's short term.
	That's the risk.
	Now, the reward is you're not holding this property long term with this loan.
	You know, the goal is you go sell this thing in four months.
	So, you know, at the end of the day, it's not that it's not that expensive if you're only holding it for four months.
	Yeah.
	Compared to, you know, if you hold a property for five years, yeah, the interest is going to kill you at that point.
	Yeah, and this is something that I've seen a lot of guys use, and it's like, you know, this is...
	I mean, would you say it's better if possible?
	Well, in the fixing and flipping world, hard money loans is kind of the way to go.
	How does someone go about getting a good hard money lender that isn't...
	Because, you know, obviously the business is filled with a lot of underground types, we'll just keep it there.
	Yeah, how can someone go about getting a hard money loan in the best and ethical way, since it's such a dirty business, it can really leave you in a bad position if you fuck up?
	Well, you know, at the end of the day, I think hard money kind of gets a bad rep, maybe from the past.
	But if you, I mean today, right, most hard money lenders are backed by multi-billion dollar hedge funds.
	So, you know, like our partner on our hard money lending business, it's a hedge fund.
	You know, I don't have billions of dollars.
	So these guys literally just underwrite loans for a living all day, every day.
	Okay?
	So, you know, for me, it's like, it's just a normal part of doing business.
	And guess what?
	If you don't pay the loan and it becomes due, just like any other loan you take in your life, whether it's an FHA or conventional, you're going to go into foreclosure.
	So I think that's the key with anybody who's getting into real estate is make sure you can cover your debt, whether you're getting a rental or you're going to do a hard money just to do a fix and flip.
	Make sure you got enough money to make those interest payments.
	What happens, Ryan, if you can't make those payments unless you're not able to capitalize on a property like you want to?
	Yeah, two things are going to happen.
	One is you're going to get foreclosed on.
	Worst case, you stop paying, you don't have any options, you get foreclosed on.
	The kind of benefit, though, on a hard money loan is it's not on your credit.
	So if you did get foreclosed on a hard money loan, it doesn't actually show up as a foreclosure on your credit.
	It's a different type of loan.
	So that is one thing.
	The second thing would be you end up either refinancing it into a normal conventional loan or you just sell the property at a lot.
	You just get rid of it.
	And so, you know, for me, when I talked about how I've lost money in real estate over the years, it's because, you know, I had a property, let's say the market turned, so example, I'll give you an example.
	You know, in 2022, they doubled interest rates, right?
	Like every, you know, we had all these cheap rates, market was on fire, and then they doubled rates.
	Mm-hmm.
	Well, what happened was they doubled it in like three months.
	It was like crazy.
	And my properties ended up losing value and they ended up sitting and I had to keep making all these payments.
	So, you know, I was making hundreds of thousands of dollars a month in hard money loan payments.
	During this time, I had about 50 properties out for like $20 million worth of hard money loans, private loans, all that stuff.
	And I had ran my business like that for years and we had made millions up to that point.
	So I was like, it was normal for me.
	But the moment the market turned and slowed down, I had ended up paying the piper.
	And so I ended up selling off those properties.
	I took a loss.
	I paid back the loans.
	But yeah, dude, it was a painful lesson.
	So yeah, if it doesn't work out, you're going to have a painful lesson one way or the other.
	But if you wholesale, you don't actually end up dealing with any of that.
	Thank you for being transparent.
	So you're saying basically, in a nutshell, wholesaling is the way to get in the money without having the headache and stress of doing it actually yourself.
	Bro, you really don't have much risk at all.
	Here's the thing I tell people.
	Probably everyone here is looking for ways to make more money.
	That's why they're watching this.
	There's so many ways to make money that you guys have talked about.
	In my opinion, I don't think there's a better way for people who know how to hustle and do sales than wholesaling.
	Because what else could you sell where you don't really have to put that much money into it to start the business or anything, and yet you can go make $20,000, $30,000?
	I don't know of anything else you could sell that's like that.
	And then also, too, to know that it's a skill that you can use the rest of your life You know, because real estate's never going away, right?
	So if you get really good at wholesaling and finding deals down the road, when you actually want to start keeping the properties for rentals or flips or whatever, you're going to know how to do that because you already know how to find deals.
	Yeah, and that's honestly one of the hardest things is finding deals.
	I mean even myself, I've been like scouring the internet with my team trying to find deals and it's something I'm gonna have to put more of my own time into because as the market, you know, as interest rates go up etc and it's hard to find deals, this is where the more savvy investor and the people that know what they're doing are able to find deals.
	Ryan, last time we spoke, if I'm not mistaken, when we were on your show, the real estate market was fairly on fire.
	It was pretty competitive.
	Now things have slowed down.
	We're in Miami.
	You're in Las Vegas.
	I think we're in some of the best markets in the country, best states in the country for real estate nowadays with it picking up.
	What's your thoughts on the market nowadays, and what are your thoughts on the trends, different cities coming up, other cities going down, etc.?
	Well, every market's local, so I'm not in tune with all the different local markets and what's popping off and what's doing good.
	So I couldn't tell you on that front.
	What I can tell you is I'm super confident what's going to happen in real estate, especially with Trump coming in, because we know he's going to lower rates here as time goes on.
	And anytime they lower rates, real estate takes off.
	Also, too, I would just say that...
	With real estate as a whole, a lot of people who try to time the market, I mean, good real estate investors who are doing lots of deals every single year, it's not like they stop doing deals.
	The market has been slow the last two years.
	I didn't just stop doing deals.
	I didn't just shut down my business because all of a sudden, the market's not this amazing seller's market like it was before.
	You just have to get better deals when the market's a little soft.
	Because buyers want a better deal.
	They should when the market's soft.
	But guess what?
	When the market gets hot again, you know what?
	Buyers don't need as good of a deal.
	The people with the deals are in control now, and so they're going to get top dollars.
	So kind of my point is...
	Anyone trying to time the market does not understand real estate.
	You just need to find deals all the time.
	Because there will always be somebody who will buy your deal in every market.
	It doesn't matter.
	Yeah, no, I agree with that.
	That's one of the number one questions we get when people ask us questions is, hey, should I buy now?
	The real estate market is XYZ and all this other stuff.
	And it's like, you know, just like you said, bro, I tell them all the time, like, don't wait.
	Like, buy now while you can.
	You know, the only difference really between you buying before or buying now is it might be harder to find a deal, but that doesn't mean that you're going to stop looking.
	Like, you need to keep looking, and if you find a deal, like, still take it.
	The other thing that I tell people who have that mindset, who actually don't even, haven't done deals yet, or have done very few, I'm like, dude, so somehow, you who has no experience, who doesn't know anything, is somehow gonna time the market?
	Like, give me a break, dude.
	You don't know anything.
	You think you'll time the market, and you don't know anything.
	Good point.
	Experts don't do it, and you want to do it as an audience.
	Yeah, somehow you figured out when the market's going to be just perfect, because you're an expert, to buy your one deal.
	It's going to crash, bro.
	Don't do it.
	What are your thoughts on, yeah, you know, because people say all the time, right, oh, market's going to crash, market's going to crash, market's going to crash.
	That's something that I've been hearing now for four years.
	Yeah.
	What's your response in time?
	I've heard it from since 2010. Yeah.
	Since the first year I've been in real estate.
	What is your response to people?
	Everyone thinks it's gonna be fucking 2008 again and all the houses are gonna go into foreclosure.
	Let me tell you what's different.
	So I got into real estate in 2010, literally right after the crash.
	So back then in 2010, the average house in Las Vegas, where I'm from, I was a realtor here at that time, was $100,000.
	That's crazy.
	That was the average price.
	And I kid you not, this is why I quit being a realtor.
	I was a realtor at first.
	I remember writing up a contract for a guy.
	This house literally, and dude, honestly, probably you guys would probably like this, probably a stripper owned it because back then in Vegas, all these strippers had multiple houses and all this stuff, right?
	It was crazy in 2007, 2006 when anyone could buy a home, right?
	So, this house was brand new, built in 2008, sold for like $350,000 or, you know, whatever, a couple years prior.
	Well, it's on the market now for $90,000.
	Wow!
	It's never been lived in.
	You know, somebody bought it as an investment.
	Never been lived in.
	Yep.
	Four bedroom, like 1,700 square feet, 1,800 square feet.
	Crazy.
	So I'm showing this house to the guy, and I'm like, dude, this is a great deal, dude.
	Like, this is crazy.
	It'll rent for like 1,200 bucks.
	You can't lose.
	It was $350 just a couple of years ago.
	Yeah.
	And he looks at me, he's like, can we offer $75,000?
	And I'm like, yeah, sure, whatever.
	Let's offer anything.
	So I write this contract up for 75 Gs.
	And the next day, the dude goes, hey, you know what?
	I think I'm going to back out of the deal.
	I go, why?
	He goes, because I think it's going to crash.
	And I'm like, is it going to be free?
	What's it going to crash to?
	I don't understand.
	He's like, at the time, I'm 21 years old.
	He goes, you're young.
	You don't get it.
	But you will.
	And it's like, dude, that story has always stuck with me.
	Because for 15 years...
	I've heard that story.
	And I've heard it in multiple reasons, right?
	In 2020, guess what?
	Everyone thought the market was going to crash.
	And you know what happened in 2020?
	They went on the biggest rip we've ever seen.
	Yeah.
	Dude, I got a couple houses right now to this day at like 3-4% interest rate, man.
	I'm like, damn, man.
	I'm never refinancing these things, man.
	No.
	Yeah, and that's okay.
	So yeah, this is what's changed too since 2008 is half of the properties right now are not even available because of that reason.
	Yeah.
	Half the properties are people have 3% or less interest rates right now.
	Yeah.
	And guess what?
	Do you ever want to sell that property?
	No.
	No.
	No, it doesn't make sense.
	None of these people want to sell those properties.
	So basically inventory got cut in half.
	For who knows how long.
	Because I don't know the next time we'll see a 3% rate.
	Yeah.
	Yeah.
	If anything, that's what I think is going to...
	People keep saying, market's going to crash.
	If anything, I don't know if we're going to see interest rates down low again.
	And if we do, guess what?
	Prices are going to jump.
	Yeah, absolutely.
	The prices are going to jump.
	Because now what's happened is, and I'm starting to realize this too, Ryan.
	I don't know if you feel the same way.
	It's almost as if it's better when the interest rates are low and paying a little bit more for the house than interest rates being high and paying less for the house.
	At least, I don't know, when I work my numbers here in Florida, it tends to be better where you're getting a better rate and paying a little bit more than getting a higher rate and paying a little bit less.
	I mean, it always evens out, but...
	Sorry, go ahead, Ryan.
	Well, I was going to say, just like in the long run...
	It just depends what your strategy is, because if you're going to flip and sell it, then price is obviously more important.
	Of course, of course.
	I buy and hold.
	Yeah, I mean, if you're going to hold it for a long period of time, the lower rate will benefit you over the long period of time.
	Yeah.
	Yeah, which I always tell people, you know, if you're a buy and hold guy, obviously interest rates matter more.
	But like you said, if you're a fixer and flipper, then yeah, then we're talking ARV percentages, everything, which that's good to know.
	So for those that are listening in, so it's somewhat similar to the cash on cash return that I use.
	Eight to ten percent is what you want as far as your profit margin with ARV, if I'm not mistaken, right?
	That's what you're saying?
	Yep.
	Okay.
	Yep.
	So Ryan, you have a slogan or phrase that says a wealthy way.
	It comes to money, mindset, lifestyle.
	What does that mean?
	How can someone live a wealthy way?
	Do you say for yourself?
	Yeah, you got the swag right now, so I appreciate you.
	Thanks, brother.
	Appreciate that, man.
	Yeah, yeah, yeah.
	Yeah, so I wrote a book called The Wealthy Way.
	That's what the podcast is called as well, Wealthy Way.
	And it's essentially that it's really not that much different than what you guys teach, just in a little bit of a different way, where it's like, yo, I want to be great at all areas of life, man.
	Like, I want to have great relationships.
	I want to make money.
	I want to have great health.
	I want to have great faith.
	Yeah.
	If you're deficient in any of those areas, I mean, I hear you guys talk about this all the time, it's going to hit you.
	Making money just isn't enough.
	And whether it's if you're trying to go find a girl or whether it's you're trying to go and just live a cool life, dude, if you're fat and out of shape, it ain't going to matter.
	If your relationship sucks, it doesn't matter.
	So I see a lot...
	Man, I've gotten to interview a lot of rich people over the years, and I've seen so many of these guys depressed, their life sucks, they make all the money in the world, and it still doesn't fulfill them.
	So it's really helping people find fulfillment and be excellent at everything.
	How do you budget your money now with all the income coming in?
	Do you put 10% towards savings, the rest of the world is real estate?
	How do you budget your money now with the money coming in?
	That's a good question.
	You know, I give a lot of money away, you know, so I'm a Christian, so we tithe.
	I give to other organizations, so that's the first thing that comes up to talk.
	W. Yep.
	So that's the first thing.
	Second thing would then be, you know, running the businesses and everything else.
	So, you know, the biggest investment I actually make is back into my business, you know, because for me anyways, if we buy a fix and flip, I don't really consider that like an investment because I'm not going to hold it long term.
	I'm like, hey, it's just a way to make money.
	We got to buy this property.
	It's a way to make money.
	You know, let's do it.
	Yeah.
	So, you know, I'm reinvesting in my business.
	I mean, dude, I have, you know, probably about 40-something employees on staff.
	And so my number one thing is making sure that I can pay for my employees, cover our marketing expenses.
	I mean, across all of our businesses, I mean, we spend six figures a month in marketing.
	Jeez.
	And so, yeah, I mean, dude, I run ads to buy houses.
	You know, I run ads to, you know, sell our coaching.
	I run ads to, you know, promote events we got going on.
	So, you know, I mean, my payroll and overhead is multiple six figures a month.
	So I'm always making sure that that's covered.
	And then after that, whatever is left, you know, I'm going to live off that.
	I'm going to save it.
	I'm going to invest it into maybe some rentals and long-term things.
	So, yeah, that's kind of how I look at it.
	Okay, perfect.
	Go ahead.
	We should do some chats with the supporters?
	Yeah, yeah, we can, and then we'll go into Zoom call where we can go into more detail.
	Guys, you guys got like a real estate expert here, and he's obviously an expert in something that me and Fresh are not.
	Fixing and flipping and wholesaling is not our thing.
	I've been extremely clear about that because people think, oh, I'm in real estate, but then I ask them, well, what do you do particularly in real estate?
	And, you know, this is somebody that obviously, and I would argue that fixing and flipping is very difficult, you know, You should get a mentor.
	Yeah, you got to get a mentor.
	You know what I mean?
	It's not necessarily something...
	But wholesaling, you need minimal, pretty much, like to start up.
	Yeah.
	And you can get a major benefit.
	You just need to know what you're doing and how to find a deal, which actually, you know what?
	We should ask Ryan about how should people go about finding deals if they want to do their first wholesale deal, what they should be looking for, etc.
	Let me write that question down.
	All right, after the chat?
	Yeah, I could read some of these.
	I've got like one or two questions here.
	You want me to answer that?
	Yeah, you know, we could do that one first.
	So yeah, how does, before I read this question from one of our supporters here, and guys, get your questions while we get this question answered.
	How does one find a deal?
	What should they be looking for to find a deal?
	And if you want, you can go ahead and do how to find a deal for a wholesale perspective, how to do a deal, obviously, from a fix and flip, and then maybe one for holding if you want.
	Yeah.
	So I think for all three, the process, how you first go about it is the same.
	We want to get a deal that's under market value, right?
	Now, because at the end of the day, we don't want to just buy market value houses.
	I mean, we want to get instant equity if we're going to buy a home.
	And a lot of people are like, man, how do I increase my net worth and everything else?
	It's like, dude, if You buy a property that you have $100,000 in equity.
	Well, look, dude, I mean, you're worth $100,000 now.
	I mean, you want to go sell it one day, you could sell it.
	If you want to flip it, you could flip it or just keep it and let it appreciate.
	And it's going to be worth a lot as time goes on.
	So I think the number one key when it comes to deals is just determining How much equity you want in every single deal.
	And I think a great place to start for most is we want to be all into deals at 80%.
	That's kind of our maximum limit.
	So if the property is worth, I don't know, $400,000, I want to be 80% of that.
	That would be $320,000.
	That's what I want my all-in amount to be.
	Because here's the thing.
	If I'm going to wholesale, I know I can wholesale it still and make money.
	If I'm going to flip at $3.20 all in, I'm going to make money.
	And if I keep it as a rental, I can do what's called a burr.
	I don't know if you guys talk about burr at all.
	We have, but you can go ahead and describe it to people because that's very important for people, especially getting their feet wet in this.
	Yeah, so BRRRR stands for buy, renovate, rent, refinance, and then repeat.
	So, you know, if I bought it at a great price, I fixed it up, I'm all in at 320, I go rent it out, it's cash flowing.
	I'm then going to go refinance the loan, which in most cases you could refinance at 80% of ARV. So I'm all in already at 80% of ARV, 320, it's worth 400. I can technically own this rental property with no money in the deal.
	And I've done this many, many times on rental properties.
	I've done it on my own personal house.
	Actually, I'll tell you a story.
	So the current house I live in, This is just an illustration of an amazing deal and why people would buy from wholesalers, why wholesalers can make money.
	So my personal house, this wholesaler got the deal under contract for $1.6 million.
	He sold it to me for $1.8 million.
	So I paid him a $200,000 wholesale fee.
	200 grand.
	People make six-figure wholesale fees.
	I've seen people make seven-figure fees.
	So we're not just talking like this is a $5,000 thing or a $10,000 thing.
	It can be massive deal.
	The bigger the deal, the bigger your fee is, right?
	I mean, you can only make so much on, I say, a $50,000 house.
	But when you're talking a $2 million property, you can make a lot of money.
	So I bought it for 1.8.
	I ended up putting in 1.2 million into fixing it up.
	It needed a ton.
	It was like the guy ran out of money during the new build.
	So I finished it off.
	And I was all in at 3 million bucks.
	Well, it ended up appraising at $3.9 million.
	So there was over $900,000 of equity.
	So it's essentially like that one house basically made me a millionaire if I was just looking at that one deal.
	Yeah.
	And, you know, I live in it right now, but, you know, long story short, I was able to refinance it, get a loan for $3 million, and I have no money into the deal.
	Wow.
	Wow.
	That's crazy.
	You were able to do that with a house that you were living in, which typically when you're moving into the home, you get way better terms.
	Yeah.
	That's smart.
	Wow.
	That's crazy stuff, man.
	That's impressive, bro.
	That's the power right there.
	That's just getting a good deal.
	It doesn't matter what you're going to do, whether wholesale, flip.
	Everyone did good there.
	The wholesaler made $200,000.
	I technically am going to flip it.
	Well, I bought and hold it for the last two years, but now I'm going to sell it and make money.
	So, you mentioned something really important before, all in.
	Can you explain this all in and what that encompasses?
	I'm assuming you're talking closing costs and everything else like that, but can you kind of explain that to the audience that might not necessarily be familiar with real estate terminology?
	Yeah, all in would just be the purchase price plus the renovation expenses.
	So if I bought it for $300,000 and I put $20,000 of renovation, I'm all in for $320,000 and it's worth $400,000.
	Mm-hmm.
	Okay.
	Yeah.
	Yeah.
	No, and I think that's something that's very important that people obviously need to take into account where, you know, when you're buying a home, it's not just you're buying the home.
	You also got to pay, well, if you have a wholesaler, of course, there's a finder's fee, and then closing costs and everything else like that as well would come into it.
	Ryan, real quick, just before we do the chats.
	If you're 20 years old now, going back in time, what would you do to make money, and how would you start your financial success route now at 20 years old?
	Well, let me preface this by saying I've done so many side hustles over the years.
	I mean, I was flipping couches.
	I was substitute teaching.
	Things like Uber and Lyft didn't exist yet.
	You know, I've done content creation.
	I've done being a realtor, being a wholesaler.
	Man, I've tried everything you can imagine.
	I used to flip cellphones and different things.
	Damn!
	Dude, I've hustled my whole life just trying to figure out ways to make money.
	Yeah, I played pro sports and did that career.
	But Ryan, you got lucky, bro.
	You're not a millionaire.
	By chance, you got lucky, bro.
	See all the hard work you put in at the very beginning?
	There you go.
	No.
	Freaking, you have to try a bunch of things to figure it out.
	But...
	Yeah, so my perspective is like, I've tried everything that I see all the 20-year-olds wanting to do.
	You know, I tried Turo, just for fun, just to see what would happen.
	I mean, I've tried it all.
	I mean, I said this earlier, but I can transparently say I don't think there's anything better than wholesaling.
	Because, like, let's just say you were going to go do Turo, right?
	It's like, you go buy one car.
	You still got to put money into this thing, finding a car or whatever.
	Car rent was terrible, too.
	Bro, I did the car rental game here.
	Bro, I got rent.
	I'm telling you, bro.
	It sucks.
	Bro, it's so risky, right?
	Somebody jacks up your car.
	Insurance doesn't pay out.
	Steal it.
	Like, Bro, it's so risky.
	And to make what?
	500 bucks for the month?
	A thousand?
	Like, maybe?
	So, what's the point?
	Whereas wholesaling, you do the same, you're hustling still, but you can make 20 grand.
	And you know that, and you have no risk.
	Like, that's the crazy part.
	Yeah.
	If anything, like with wholesaling, really what you're, the thing that you're going to be spending the most is time.
	That's what you're going to be, you know, doing.
	But once you get good at finding deals, et cetera, and you got people that are looking for deals, then it just kind of becomes like almost an assembly line approach.
	But guys, if you're starting out, you're a brokie man, try different things, man.
	You never know what's going to hit, but try multiple things to see what happens for you.
	Some chats real quick?
	Yeah, yeah.
	Let's go ahead and hit some chats here, and then, guys, we're going to be having a Zoom call with our Castle Club people, Castle Club Premium and regular Castle Club.
	We're going to send a link out.
	Our Castle Club Premium guys are going to be in the Zoom call asking questions, but we're going to televise it to the Castle Club guys so you guys can actually get that sauce behind the scenes.
	There you go.
	Let's see here.
	We got fresh updates.
	Goes W. Appreciate that, fresh updates.
	We got Kwai's Willcox says, would you recommend trying different lenders at the same time?
	What's your thoughts on that, Ryan?
	They're saying trying different lenders at the same time.
	So I'm assuming maybe having multiple deals and trying different lenders.
	Guess what he means?
	I think if you build a relationship with one lender, they're going to do better.
	They'll start to give you better deals and better rates.
	But yeah, I don't think there's anything wrong with just figuring out who's going to shop and around for lenders.
	Because some lenders will give you cheaper rates, but they won't give you what we call as much leverage.
	Because if I got a lender who will give me 90% of the deal, which many will, that means I only got to come up with 10%.
	So even if you wanted to flip, it's actually not as much money as people think.
	So let's just take this normal deal, the $300,000 deal we've been talking about.
	So I get it under contract for $300,000.
	I'm like, yeah, I want to flip this.
	Well, I know these hard money lenders will give me 90%.
	So all I need to do is come up with 10% of 300K. That's $30,000.
	Now, most people don't have 30 grand, but guess what?
	Pretty much everyone here knows somebody with 30 grand.
	And so we would get what we call a gap funder to fund that $30,000 for us.
	And so that's how we start fixing and flipping without even having to put money into that either.
	Gotcha.
	Gotcha.
	And then really what you're working on is just hustling, getting the work done quickly.
	Let me ask you this, Ryan, because this is something that's always had me very, I guess, apprehensive to deal with the fixing and flipping, right?
	Because it can be fairly labor intensive.
	Obviously, you get the deal.
	Your goal is to get it fixed and rehabbed as quickly as possible as you can turn around and put it back on the market.
	How do you go about finding people to do the work?
	And at what point do you say...
	So first you need people to do the work, right?
	But then you've got to figure out what work is worth being done.
	Are we talking just some interior painting, which you mentioned on your first deal you did?
	Are we talking we could work all the way up until plumbing issues, maybe a roof that needs to be replaced?
	At what point do you figure out and say, okay, this is worth the repairs.
	Let's do it versus, okay, this is not worth the repairs.
	We're not going to do it.
	What are the, I guess, the no-goes?
	We've got a really easy way to figure this out.
	It's called copy the comps.
	So when we're looking up ARV, it's like, okay, ARV is $400,000.
	Well, what did that house look like?
	So that $4,000 house, did they have a new kitchen?
	What kind of countertops did they have?
	What did the floor look like?
	You don't even need to literally just copy that house.
	If they use a certain style, they used white cabinets and white counters and everything else.
	Literally just copy it.
	Because it's already been proven to be worth $400K. You don't need to reinvent the wheel.
	Okay, so basically...
	Don't do anything different to what the house already is.
	So what would make you say, what are some issues with the house, right?
	And this would be good for the buy and hold guys too.
	What are some issues with the house where you would say, okay, this one's a no-go.
	We can't fix and flip this one and actually turn a profit or not worth buying.
	Are we talking plumbing issues?
	My mold?
	New roof.
	Who knows?
	Move, yeah, yeah.
	We've literally done everything.
	We've done houses that we fixed and flipped that were teardowns.
	Like literally the entire house needed to go.
	Wow.
	So it all just depends on the numbers.
	So if I'm just looking at, like, I got to get a contract in there to give me the numbers.
	So first I start with ARV, and I'm like, oh, okay, that's what a $400,000 house looks like.
	What kind of, like, condition is it in?
	Okay, it has new showers, new closets, new kitchen, all that good stuff.
	All right, tight.
	I'm going to go get a contractor, walk this current house, see what it's going to cost to get it up to that level, and then the contractor says, maybe it's $60,000 to get it to that level.
	So all I do is I say, okay, it's worth $400,000 fixed up.
	I wanna be all in at 80% of that.
	So I wanna be all in at 320. So if I'm all in at 320 and I got 60K of repairs to get there, then I minus 60,000 from 320. So now I'm at 260. So 260 is the price I need it to be at for me to buy this deal.
	It's just simply reverse engineering math.
	That's how you figure out what you can pay.
	Gotcha.
	And would it be fair to say, because you were saying comps, right?
	So basically, the deal that you're looking at needs to be, I guess, on par with the other houses in the area since residential real estate is so heavily dependent on comps.
	Yep.
	Yeah.
	Residential depends on all the properties that are like it near it.
	Commercial's different.
	Commercial's valued based on net operating income.
	But yeah, for what we're talking about, just look at properties that are the same square footage that are nearby.
	I guess it's a delicate balance where you're fixing the home just to get it on par with the other homes in the area so that it's comparable versus, oh, let me go ahead and put marble countertops and make this thing super exquisite.
	That's not what you want to do.
	No, because the main thing you don't want to do is over-renovate a home.
	I'll tell you an example.
	When I first started flipping in 2015, I actually first started out buying homes in the ghetto.
	So a lot of people were like, bro, why would you buy a house there?
	It's going to get robbed.
	It's going to do this.
	And I'm like, well, there's less competition.
	People don't want them, but the numbers make sense.
	I'm going to just buy it.
	And so I started buying homes in the ghetto.
	That's how I first got started.
	And everyone else was buying only in super nice areas, blah, blah, blah.
	And I was making more money on my properties, and they cost way less.
	And the thing that you got to remember is...
	Especially with properties like that.
	Bro, they ain't looking for marble countertops and all that stuff.
	You don't renovate a property based on what you like or what you would live in.
	You also don't buy properties based on where you would live.
	You just simply buy properties based on if the numbers work.
	If the numbers work, Especially as a fix and flip, you buy it.
	And so, yeah, I would never over-renovate a property that's in the ghetto where it's like, dude, they're fine with just normal cabinets and lower stuff.
	Because here's the thing, too.
	That person who's buying that house is going to be more price sensitive.
	So maybe I over-renovate the house.
	And, you know, it's like just so sick, right?
	And it's in a lower income area.
	And I price it at maybe $300,000 and everything else is at $260,000.
	Well, guess what?
	It's not going to appraise for $300,000 because there are no other properties that sold for that.
	And also, too, the end buyer would rather be at $260,000 and have like a less nice house.
	Yeah.
	Because they're more price conscious.
	Yep.
	Absolutely.
	How do you go about getting contractors to do the fix and flips?
	That you trust.
	Yeah, because that's where I think things can get a little bit tricky and people can get scared because now we're on a tight timeline.
	We got a hard money loan out.
	We got a year to get this thing kind of done.
	So how does one go about finding trustworthy laborers to get this thing done?
	Yeah, dude, that's the hard part.
	That's why I love wholesaling because you don't got to deal with contractors.
	You don't have to deal with, you know, fixing things up or hard money loans or nothing.
	I love wholesaling for that reason.
	But, you know, we still flip, too.
	I mean, so if you're going to flip.
	I would say, you know, number one, referrals.
	If you can get referrals from other people who are in the industry, then that's huge.
	But two would be, here's a quick tip, you guys can go to Home Depot, right, at like 6 in the morning.
	Lorenzo, one!
	Go to Home Depot at 6 in the morning and see who's there working at 6 in the morning, getting their materials and everything else.
	Those types of people are obviously on their game.
	Don't go to Home Depot at 10 a.m.
	and think you're getting the good guy.
	You're getting the dude who's hungover, just woke up, and now ready to go to work.
	We don't want that.
	Right.
	Yeah.
	No, that is...
	That's actually a good hack.
	That's very stereotypical, but no, I mean, that's true because, you know, you're going to find people that are skilled laborers that can do this stuff.
	Yo, we've had cases where, like, you'll pay the person half, and they'll be like, yeah, I'll do the job for you, brother.
	They start, and they're like, oh, my wife is sick, my friend.
	Let me talk about that so nobody gets screwed either.
	Please, please, yeah.
	Please do.
	When you get a contractor, they will always say something like that.
	Hey, like, pay me half, and then I'll pay me half when I finish.
	Never, ever do that.
	So the rule that we have with contractors is, number one, it's called stay ahead.
	So we have to always stay ahead of the contractors.
	Meaning, if I gotta fire this guy tomorrow...
	Man, I haven't paid them all this money, and now I'm going to be way behind when I hire this new contractor.
	So we want to always stay ahead.
	And so we do that by just paying out weekly in less big chunks, right?
	And so maybe I'll give them a little bit of money to get started.
	I ain't giving them half.
	I ain't even going to probably give them a quarter.
	I'm going to give them whatever is needed to the bare minimum to get started.
	And then I'm going to make progress payments as we go on.
	Now, here's the thing.
	A lot of contractors will be like, oh, well, you know, I want to get paid weekly, so, you know, where's my payment?
	Well, you got to go and check the property to make sure that the work's got done.
	I see a lot of people who don't check and they're like, oh, they want their second payment.
	Okay, here we go.
	Right?
	And it's like, no, you have to only pay if they've gotten whatever needed to get done for that next payment.
	Got it.
	So what would you say when you're rehabbing the house?
	What are the three top things guys need to fix to instantly get the most bang for their buck when they're fixing and rehabbing this house?
	What are the top three things you would say?
	Kitchen's always number one.
	Everybody's, you know, that's where everybody's looking, number one.
	Number two would be the master shower.
	So master shower's always super important.
	We'll put way more money in the master shower than we would guest showers, because most people, honestly, don't even care.
	You know, about the guest stuff, you know, usually for kids and whatever else.
	Gotcha.
	So that would be number two.
	And then I would say the third just kind of depends on the house's price point for what would then become the most important.
	Man, there are houses where the backyard is really important.
	There are some where the backyard doesn't matter at all.
	Like here in Vegas, backyards don't really matter that much in a lot of houses.
	I mean, we just have dirt lots on some of these properties, and people are like, yeah, it's all good.
	I'm going to go and do whatever I want with the dirt lot.
	Whereas others, right, if you don't have, like, for example, if you're doing a luxury deal and the house doesn't have a pool, well, you better add a pool to it here in Vegas anyways, because if it don't have a pool, nobody's buying it.
	Yeah.
	No, that's a good point.
	It's very dependent upon where you are as well.
	That's the first I've heard of a master shower.
	Normally what I get is kitchen, obviously, the bathrooms, and then the last one I would say is roof.
	If it's under...
	I mean, typical most roofs are, what, 10 to 20 year lifespan?
	Yeah.
	Also, materials are mad expensive now.
	Materials are hard to find, too.
	Yeah.
	Are you buying the materials and giving them to your laborer, Ryan, or are you having them pick them out?
	How do you normally do that?
	So, I used to...
	So, I never brought the materials, but I used to have Home Depot call me, and then I would pay for the materials whenever they were there.
	And it was a way for me to, like, protect myself and also to see when they're actually going to Home Depot.
	So, you know, if I... I better have been getting those calls early in the morning.
	So that was what I did when I first started.
	You know, as time got on and we scaled, it was just too crazy.
	I mean, imagine, at my peak, we would be doing 70 flips at once.
	Holy shit.
	70. Yeah.
	7-0.
	So, you're talking like, once I started to scale to that level, I'd be getting called by Home Depot literally Every 10 minutes.
	Yeah.
	Just non-stop throughout the day.
	And I'm like, this ain't it.
	So eventually that changed.
	Gotcha.
	Okay.
	Here, we can go back to chats.
	No, this is great stuff.
	Guys, I hope you guys are enjoying this, man, because you guys are getting another perspective here.
	Because I'll tell you how this, being fresh, don't fix a flip, bro.
	Yeah.
	And we don't wholesale.
	So you guys got an expert right here that can literally take you guys through this stuff from A to Z. Also, you may be broke now, but learning this now, you know what to do in the future.
	Yeah.
	Sorry, Ryan, go ahead.
	And we got an, I don't know if you mentioned it or if the link's down there, but we got an event on, a virtual event Wednesday through Friday if anyone wants to go.
	Yeah.
	There you go.
	Hey guys, it's not expensive.
	I think it's like $97.
	Yeah.
	And you can learn all this stuff.
	I'll tell you guys this.
	We told you guys, this is not our forte.
	We're buy and hold, guys.
	We are now fixer and flippers, wholesalers, and all this other stuff.
	So this is someone that you absolutely want to talk with.
	He's done hundreds of deals.
	Way more than us.
	Yeah.
	But also, mistakes can be costly.
	$97, nothing compared to what you can lose doing it the wrong way.
	Absolutely.
	Do it the right way.
	Okay, let's see here.
	So, what do you think of trailer parks, running parks, or buying trailers in parks to flip or rent?
	What's your thoughts on that, Ryan?
	So, I have flipped mobile homes before, and I treat them just like normal homes.
	I mean, at the end of the day, we just run the numbers, right?
	And if it makes sense, it makes sense.
	Certain mobile homes...
	difference, like mobile homes are their own whole unique niche, right?
	Because if we're just talking about like a mobile home park or a trailer park, that would be commercial real estate because you're just essentially owning the land.
	All these mobile homes are paying you lot rent.
	And so, you know, the property is valued on how much lot rent you're getting.
	On the flip side with like single family, I have flipped a bunch of mobile homes here in Las Vegas and other places because they actually own the land they are on.
	So So they own the piece of property, and there just happens to be a manufactured home or a mobile home on top of it, and we treat it just like any other normal home.
	Got you, got you.
	Okay.
	Any inherent differences, you would say, between the mobile home game versus traditional?
	A lot, dude.
	A lot.
	Do not, for anyone here, do not buy a mobile home in a couple of scenarios.
	Okay.
	Go ahead.
	If it doesn't include land, then it's treated the same way as a car is treated.
	It just has a title, and you're essentially flipping a car.
	So, you know, I see it all the time.
	Like, people will say, oh, well, you know, this property sold for, you know, $300,000.
	You know, it's a mobile home.
	It's like, well, yeah, because it included the land and everything else.
	And, you know, they're like, oh, I got this mobile home that they only want $30,000 for it.
	And it's like, yeah, because it's just the home.
	There's no real estate with it.
	So it's treated like a car.
	So you got to figure out, is the land included?
	That's number one.
	Okay.
	Number two is, is it actually attached to the land?
	So this is a huge thing that makes or breaks the value of a mobile home.
	If the property is attached to the land, which by the way is the stupidest process ever, they literally attach it to the land with chains.
	It costs like $5,000 and that's what they consider it attached.
	And when it's attached, it can actually get a loan.
	So now it counts as like real property, and you could go get like an FHA loan, a conventional loan, and treat it like just a normal house.
	They treat it the same way they would treat a normal house.
	Good to know.
	Yeah.
	So if it's attached, it's significantly more valuable because now people can buy it with a loan.
	If it's not attached...
	You could potentially pay to get it attached.
	I've done this before many times.
	It costs like $5,000.
	You get it attached, now it qualifies for loans and it's significantly more valuable.
	But there are situations where they can't attach it.
	If it's built like...
	I forget the exact date, but I think it's 1976. If it's built in 1976 or before, it's considered too old.
	You cannot attach it.
	Wow.
	So, this whole thing with chaining it up and costs like $5,000, I'm assuming you get some kind of proof of purchase for doing this, right?
	That you can use, hey, this is proof that this house is attached to this, sorry, this mobile home is attached to this property, so it's an actual real estate deal versus where you're saying if it's detached, then it turns more into like a vehicle deal.
	Well, it...
	Kinda.
	So once you attach it, it gets recorded in the county.
	So it's a public record now.
	It's literally, they treat it the exact same way you would treat any normal house.
	But you can still sell a mobile home with land that's not attached.
	And if you do, you know, it's still worth a lot because you have real estate with it and land, but only a cash buyer could buy it.
	Okay.
	Good to know, bro.
	Honestly, that whole trailer part stuff, I had no idea, bro.
	So that's a good take there.
	No, that's a whole other thing.
	I know Justin Waller deals with trailer parks quite a bit, but I didn't know that whole thing where you can attach it and that changes the game.
	So should they buy it?
	Basically, the tip you're giving here, Ryan, is don't buy it unless it's attached, right?
	Or if it can be attached, because then you can have a huge value at it.
	I've bought properties where, you know, dude, I bought mobile homes for $80,000 that had the land that weren't attached.
	All we did was attach it, and all of a sudden they were worth $200,000.
	Gotcha.
	Okay.
	I can imagine as a seller, I'll just put some chains on the trailer.
	I'll say, it's attached, brother!
	Come buy this shit!
	Yeah, you need that.
	Just chain the bottom.
	Yeah.
	And so, yeah, you need that proof from them that it's...
	It's a finesse, bro.
	Yeah, man.
	Oh, it's for sure the biggest finesse in the game.
	It literally does nothing.
	Wow.
	Okay.
	So basically, they need that paperwork because there's something there that shows that it's recorded with the, I guess, with the town or the local government.
	Yeah.
	They need that.
	Okay.
	Cool.
	What's next?
	Good question on the mobile homes, guys.
	And that's some little game right there.
	I didn't even know that stuff.
	E-Money.
	Go ahead.
	13-year Army vet in South GA near Savannah.
	Currently live in a three-bedroom, two-bath for $180K through via loan since 2020. Considering renting out to active duty and getting a place in Savannah with a via loan and house hack.
	Also very interested in wholesaling.
	How do you suggest I get started?
	Thanks, Evan F. We covered it earlier, but Ryan, you want to do a quick run-through of how to get started in wholesaling?
	Yeah, I mean, you guys talked about it, right?
	I think you got to get a mentor, somebody who's done it, just to help you with the contracts, make sure you know what you're doing, get you situated with figuring out how you're going to talk to sellers.
	Wholesaling is simple as far as the mechanics of it.
	You find a deal, you find a buyer.
	Do you do like a consulting one-on-one for wholesaling?
	How to get started fully?
	Like a guide?
	Yeah, we have coaching.
	Yeah, so we have coaching for all of it.
	I mean, I think...
	If anyone wants us to help them out, I think just go to the workshop that you guys mentioned.
	It's this week, and you guys have a link to it and stuff.
	Guys, link is in the description.
	Get in there, man.
	Get in that workshop.
	Like I said before, this is something that you guys can get into.
	This is an expertise that isn't our thing, really, with fixing and flipping and wholesaling.
	A lot of you guys might not have the capital to get into wholesaling.
	We've talked about this a lot.
	It's a great way to get your feet wet.
	I think it's better than being a real estate agent.
	A lot of people want to fucking become a real estate agent.
	I think that's one of the biggest ways.
	Don't do that.
	Actually, you know what?
	Real quick, because you were a real estate agent before, Ryan.
	Can you talk about why?
	Because for some odd reason, everyone thinks, I want to be an investor.
	I want to get a fixed and flipping.
	So I'm going to go get my real estate license.
	Yeah.
	Talk about that real quick.
	You do not need a real estate license.
	So I'll preface this.
	So I got my license in 2010 when I was 21 years old.
	I was an agent for eight years.
	Never made anything close to being an agent that I made as an investor.
	One of my businesses was I built a real estate brokerage with 200 agents underneath me.
	I've had the business from every standpoint you can imagine.
	As an agent to then having a brokerage with 200 agents paying me a cut of all their deals.
	Dude, It's just, if you're going to go and put the work in, figure out how to wholesale.
	Because all your money's in finding deals.
	If you find deals, you will always have buyers.
	The problem with agents is, not only do they not know how to find deals, but instead, they're just constantly trying to go find people that want to buy a house, that want to list a house or whatever, right?
	And then they're always getting nickel and dimed for their commission.
	Yeah.
	You know?
	And it's like, it's always a race to the bottom.
	And it's like, and most agents I know, they're not actually wealthy because they never buy the properties.
	They just always, you know, yeah, they're just always doing commissions.
	So, you know, I really don't know that many wealthy agents, but I know lots of wealthy investors and people who started out wholesaling, who eventually did buy and hold and, you know, bought apartments later and, you know, all that stuff.
	Yeah.
	Well, and Ryan, you have some houses that you buy and hold, right?
	I'm guessing?
	Yep.
	Yeah, dude.
	So, real quick for you, what's the matrix for a good tenant in your eyes?
	How much do they earn per year?
	What type of neighborhood would you want to be investing in if you're going to buy and hold?
	Can you give the audience some tips as far as that goes to not deal with problematic tenants in your eyes?
	To give some context, I talked about our fix and flip stuff.
	We've done 600, 700 of those over the years.
	I have bought and sold, literally, I bought it and have already sold it, over $100 million worth of real estate.
	We've done a ton of transactions over the years.
	Within those transactions, I've bought rental properties.
	I bought single families here in Vegas.
	I started buying Airbnbs back in 2017, before Airbnb was even popular.
	I ended up building a portfolio of 10 Airbnbs in Big Bear, California, which crushed it.
	And then I sold a bunch of them off because Airbnb got saturated.
	But even with that too, we then started a syndication for a fund.
	And so we've bought 600 units that we currently manage all across the country.
	So I kind of have perspective on the buy and hold side on lots of different things.
	Okay.
	So...
	Number one, when it comes down to viewing and screening tenants and everything, I don't do any of it.
	I just hire a property manager and I let them do their thing.
	I let them worry about all that stuff.
	It just depends on the area for what they're willing to accept.
	Honestly, I can't even remember what they do.
	I think it's like a third of their income can be rent.
	That's kind of like the max that people go for.
	But as far as areas go and what I target, I am a huge believer in appreciation as the main way people make money with rentals.
	I actually am a big hater on cash flow.
	Okay, all right.
	Yeah, so this is my belief system, okay?
	Yeah, sure, sure, sure.
	That's the beauty of real estate.
	Everyone's different.
	Yeah, so this is my belief system.
	The idea that everyone was sold, man, like 20, 30 years ago with Rich Dad, Poor Dad and all this stuff of like, hey, let's create passive income through rental properties.
	I don't think that really exists that much today.
	I think it was true 20 years ago, 15 years ago, right?
	When those properties in Vegas were $100,000, you know, they cash flowed really well.
	I mean, that same property today in Vegas is worth 500 grand.
	And it rents for like 3,000 bucks.
	The mortgage is like 3,000 or 3,500.
	You would lose money on the same exact house.
	So there's a lot of properties in major, most major cities don't cash flow.
	Okay, so that's just what it is.
	Now, you can go get cash flow in the Midwest and other areas and stuff like that.
	I get that.
	But the real benefit of owning rentals is the appreciation and the tax write-offs.
	If you buy in the right areas, they are going to appreciate a ton, and you're going to get a tax write-off today.
	That is far more valuable than the cash flow.
	So if you gave me as like, oh, this property can cash flow $200 a month, $300 a month, For me, I would rather take a property that doesn't cash flow anything, but it's in a baller area that I know is going to appreciate a ton in the long haul.
	Wow.
	Yeah.
	All right.
	I mean, the thing is, right, when you have a portfolio that big, then you can afford to break even or even, in some cases, even to go negative on some properties because your other houses are kind of subsidizing that need for cash flow.
	So I can see where...
	That's more advanced, right?
	Obviously, for a beginner, we would tell you guys...
	Hey, your first deal, please make sure it cash flows, right?
	Oh, 100%.
	You cannot lose money.
	But by the way, this is why I'm a huge fan of wholesaling, because it's really hard to find cash flow today with interest rates and prices and all this stuff.
	I got a method.
	I call it Cash Flow 2.0.
	That's actually what the workshop is called.
	And my belief is that if you really want to make cash flow, the best way to make cash flow, and you guys know this too, is building a business.
	A business will make you way more cash flow than anything else.
	You have control of it.
	You can dictate how big it's gonna go.
	It's not like any of these other things where you're not in control and you're just kind of hoping it goes up.
	You're in control of your business.
	And the cool thing about a wholesale business, we've been talking about it for a while, but it's like, You can hire other people to do it for you.
	You can hire salespeople and they find the deals, right?
	You just get your marketing in check, you get them leads, teach them how to sell, and then boom, you can make cash flow.
	And it's like, if you were to ask me, man, how do you make a lot of people want to make 10k a month?
	And it's like, if you were to ask me, how could you make 10k a month, you know, somewhat passively?
	Get a wholesale business, hire one salesperson, and if he can get one deal a month, you're at 10k a month cash flow, passively.
	That's way easier than trying to go get 20 rentals to get you 10k a month.
	Yeah.
	Okay.
	Okay.
	No, I mean, that's definitely another way to look at it for sure.
	What's the next question?
	Okay, cool.
	We're going to start a Zoom call here in a little bit, guys, where we're going to go ahead and talk about this stuff in more detail.
	Again, Ryan, you said you're going to be holding a webinar on this stuff on Wednesday, right?
	On covering a bunch of different real estate topics.
	To Friday.
	Yep.
	So we got a workshop Wednesday to Friday.
	It's virtual.
	Three hours a day each day.
	So, I mean, nine hours of training on how to find deals, how to find buyers, how to do the contracts, how to run your numbers, make sure everything works, and really build a wholesaling business from scratch within three days.
	Shit.
	And that's really good for a lot of you guys that might not necessarily have the capital to go in as an investor or put a down payment on a house.
	This is your way that you can get that capital and then eventually use that money to get your first house.
	And the beginning of it, it's virtual.
	So you could be home taking notes, studying it.
	Yeah.
	And the other thing, too, is people will drop all this money to be a real estate agent.
	They'll spend thousands upon thousands of dollars.
	Hours.
	And hours to get a real estate license.
	And then they won't even use it or they'll do it.
	It's funny.
	Half-assed and not make any money.
	You ask a realtor, especially here in Florida, you'd be like, how many apartments have you sold?
	Uh, zero?
	That's what I thought.
	You got your license for nothing.
	Because you don't know how to sell.
	What I've noticed, at least here in Florida, like, every chick is like a fucking real estate agent.
	Like, a lot of them make their money off of, like, just renting apartments.
	Like, they're not even selling houses.
	I mean, I don't know if it's like that in Vegas as well.
	On your side, Ryan, but that's how most of them substantiate themselves.
	Or to sell them bucks.
	Yeah.
	You want this property?
	Okay.
	But Ryan, this was a great interview.
	I think we got a lot of value here.
	Where can I find your brother and what's coming up next for Wealthy Way?
	Yeah, you can search me on YouTube, Instagram, all that, Ryan Pineda.
	What's next?
	I mean, dude, 2025, we're going to be doing more podcast interviews.
	So, I mean, if they want to go subscribe, I got your guys' podcast dropping here in a couple of weeks.
	So definitely go subscribe there.
	But yeah, dude, I mean, we're going to do more deals, train more people, do more podcasts.
	It's going to be good.
	Last thing I want to say before we switch on over to the Zoom call, which we're opening it up for you guys right now on Castle Club, and Premium guys are going to be able to ask questions.
	Castle Club Ninjas, you guys will be in there as well listening in.
	Obviously, we just came off the—and we talked about this a little bit during our interview—we just came off of the 2024 election.
	Trump won in a landslide.
	Thank God.
	I know you had kind of alluded to this a bit, saying you think one of the things that's going to happen is Trump's going to come in at lower rates.
	Any other things that you think are going to occur during this term as far as real estate goes that might influence the market?
	Yeah, dude.
	I mean, rates are number one, so that's the big one.
	But number two would be he's just going to be so business friendly.
	I mean, he's talking about potentially no capital gains and all of these other things that are going to help businesses.
	I know he's also looking at making depreciation back to 100%.
	Oh, really?
	Wow.
	Wow.
	Real quick, can you explain to the audience what depreciation is?
	Depreciation is used in real estate.
	People also use it in machinery and cars and everything else.
	Probably the one that gets the most attention would be the cars for a lot of people.
	You used to be able to go buy an Escalade or a big SUV and write off 100% of it that year.
	So, if I made, let's just say I bought $100,000 or Escalade, it would write off $100,000 of my income.
	And so, depreciation's a really big deal, but it's an even bigger deal with rental properties.
	Yeah, it's huge.
	It's one of the best ways to go to bring your tax liability down.
	And then you use cost segregation as well, which adds even more to it.
	It's huge.
	How long are you typically holding your properties, Ryan?
	Are you holding them for one year, two years, five years, longer than that, or are you shorter?
	So...
	I hold rentals for usually five years or less.
	I like to turn and burn them.
	And then either just get another one or 1031 into a new property.
	Because what happens is if I get a really good deal and I feel like I've kind of maxed out that deal, I mean, I could just keep holding it and...
	It's probably not going to keep going up that much from there.
	But if I sell it and I get into a new deal, which basically has a fresh start and I'm able to add value again, I can now multiply the money better.
	If you just look at big hedge funds and stuff, they do the same thing.
	They're not holding properties for 20 years.
	They're turning and burning properties, getting what they believe is the best IRR, and then going into the next deal.
	Also, too, in a lot of cases, they can't even hold them for more than 5 to 10 years just due to having to get the investors their capital back.
	Yeah, BlackRock, etc.
	They're buying up all these goddamn single-family homes, and yeah, you're right.
	I mean, they're not going to hold them forever.
	They're going to hold them for a good amount of time, max out cash flow and appreciation, and then turn it back into the market.
	Are you at crypto?
	We didn't get a chance to talk about crypto when we last spoke.
	Bitcoin's at $106,000 right now, which is fucking wild.
	Damn.
	Are you in crypto yourself, Ryan, or is it not really a thing for you?
	Yeah, I've done crypto.
	I've been in crypto since 2016. Okay.
	You know, crypto's been great to me over the years.
	You know, I did an NFT project that was successful.
	Unfortunately, like all NFTs, you know, didn't end well.
	But overall, a lot of people had tons of success with it.
	So I'm obviously watching crypto a lot with everything.
	Mm-hmm.
	I think that crypto has a huge future in real estate, especially with transactions and blockchain.
	You know, it's not here yet, but I think as time goes on, it'll be there.
	But yeah, I mean, dude, I'm a huge believer in Bitcoin.
	I think that all the meme coins and stuff, it's gambling, right?
	So whenever I see people lose money on meme coins and complain about it, I'm just like...
	Yeah, I'm like, dude, you're an idiot.
	Like, how do you even...
	Spit on that thing!
	Yeah, like, the Hawk Tua girl, I'm like, how do you even complain that you bought it and it went to zero?
	Like, you're an idiot.
	Yeah.
	So, but I'm a huge believer in Bitcoin.
	I think Bitcoin...
	I mean, just for so many reasons, I think it's just going to keep going up, and it's just going to go crazy.
	Yeah, I mean, when Trump took office, it literally soared into the 90s.
	It really went up like $20k to $30k.
	And now it's well over $100k.
	It's hitting $106k.
	So it's soaring.
	Ethereum is doing pretty well.
	Ethereum is sitting at around $4,000 looking at it now.
	So I think we might get to a point where you'll be able to use Bitcoin to buy property, right?
	If we haven't already, you know, and more...
	People have done it before, but it's like, yeah, it's just rare.
	Yeah.
	You'll be able to do it on contracts.
	I'm sure they probably do it informally where they just transfer the money.
	But I think we're going to get within the next 10 years or so where you're going to have in the contract this amount of Bitcoin will be transferred on this day for this amount or whatever it may be.
	Yeah, when I had my NFT, we actually did something similar.
	I had an Airbnb here in Vegas that I specifically did for that.
	It was a million-dollar-plus Airbnb, and people could use coins to stay in the Airbnb.
	And so we did that for two years.
	It was the first of its kind.
	That's crazy.
	You know what?
	Let me ask you this before, and I just want to get the guys much value here, and then we're going to go to the questions with the Chaos Club guys.
	Airbnb, Ryan, this is something also that isn't really my thing.
	I've stayed away from it.
	I think the pandemic had a lot of people worried.
	You've navigated it.
	What are your thoughts on Airbnb?
	Should people get into it?
	Is it something that's kind of tapped out at this point?
	Is it still something people can do?
	What are your thoughts on it in general?
	I really don't like it anymore.
	I loved it in 2017 when I first started because no one was doing it, and I made a ton of money doing Airbnb.
	And then, you know, I think after COVID, it got really, really popular.
	Yeah.
	And, you know, it got saturated.
	And, you know, not even with just saturation, but with the market.
	I mean, or a lot of markets just started banning it.
	They started adding all these rules and regulations.
	And it's like, I wouldn't bet my business on it.
	There's just way too much negative stuff against it.
	Yeah, I think COVID slowed it down.
	It brought it up, but then it also slowed it down a bit because obviously the vacation market went down.
	Also, HOA companies, also condos were like, you know what?
	This is taking away from our business.
	We want this out of here.
	Yeah.
	And tenants are sometimes kind of crazy because they wreck stuff and then they report to Airbnb, oh, it's their fault, not my fault.
	Yeah.
	I'll give you an example.
	Here in Miami, it's fairly hard to Airbnb your condo.
	If you try to do it, you can get in some serious trouble for doing it because a lot of buildings don't want it for obvious reasons.
	Also, owners complain to the city and the state because they feel like the gas for the Airbnb are damaging the property and the value of it.
	So they complain to the city and say, hey, listen, can we get these people out of here?
	And then they ban it.
	And I think New York City banned it all outright.
	Yeah.
	I think it's completely gone in New York City.
	Vegas is banned too.
	Oh, it's banned in Vegas?
	There you go.
	Yeah.
	What the fuck?
	Everyone you stay in in Vegas, it's usually illegal.
	Oh.
	Because if you think about it...
	Oh, shit.
	Why do you get an Airbnb?
	What the fuck?
	Traveling with your friends to get lit, party.
	You know what?
	That makes sense in Vegas because Vegas has such a strong hotel industry.
	Like, what I've noticed is the stronger the hotel industry...
	Oh, yeah, dude.
	The hotels hate it.
	Yeah.
	Like, the stronger the hotel industry is in your city, the stronger they're going to get Airbnb the fuck out of there.
	So that makes sense, that Vegas, because, like, the entire strip is all the legacy hotels, so they're going to make sure Airbnb is, like, get the fuck out of here.
	I like the Vegas hotels, man.
	Yeah.
	In and out.
	In and out.
	So, what year, Moe's actually, one of our guys here, Ryan's asking, what year did they ban it?
	Dude, I mean, at least four years ago, it was almost illegal in Las Vegas proper.
	And then Henderson, you had to go through a lottery and all this crap.
	There are some legal ones, but at this point, if you want to have one, it's basically illegal.
	Gotcha.
	So it's very difficult.
	If you buy a property now thinking, I'm going to put this on the Airbnb market, you're going to have a tough time.
	Do not think that in Las Vegas.
	Wow.
	Yeah.
	You know, I'm not surprised though.
	Wherever the hotel industry is big, they're going to fight tooth and nail to keep Airbnbs out.
	Oh, they want you gambling losing money.
	What was that, Ryan?
	They want you gambling losing money on the strip.
	Yeah.
	Yeah, because...
	Also, they give you free hotels when you gamble, too, if you're a solid gambler, so they can't give you free Airbnbs.
	Yeah, it makes sense because the hotel slash casino slash nightlife, it's all intertwined because all these hotels are like damn near...
	It's an entertainment complex all in one, so they want to incentivize you to be at the hotels, not the Airbnbs.
	But no, that's great, man.
	So we're going to transition over, guys, to the Zoom call.
	Ryan, real quick, can you plug your stuff before we end the stream and then move on over to the Zoom call?
	Where can I find you?
	Yeah.
	Yeah, yeah, yeah.
	Ryan Pineda on social media.
	If anyone wants to learn real estate investing, they can go to WealthyInvestor.com.
	You guys got the link to the workshop, so we'd love to see everyone at the workshop.
	Yeah, guys, go check him out, man.
	Obviously, the guy knows what he's talking about.
	There's a reason why he's on the show.
	There's a reason why I wanted to bring him on live as well so you guys can ask these questions because he has an expertise and stuff that me and Fresh don't.
	So we want to fill that gap for you guys in the real estate game.
	So guys, we're going to end the stream here.
	If you're watching on Castle Club...
	Just don't move.
	The stream is going to continue on over there.
	Stay over there.
	We're just going to end it on YouTube and on Rumble.
	And we're going to do a private Q&A with the guys in the back end with Ryan for a bit.
	In more detail.
	And then we're going to go.
	Also, we're going to do an after hours for you guys with some lovely ladies.
	Probably coming up.
	10.30.
	10.30.
	Yeah, I'm assuming like 10 or 10.30 we'll do it with the girls.
	So we'll have Ryan answer some of your guys' questions behind the scenes.
	So guys, come on over.
	If you're watching on X, you're watching on YouTube, on Rumble, come on over to Castle Club.
	And it's going to be for the paid Castle Club members.
	We're going to do a private Q&A with Ryan.
	And this is someone that you can really pick their brain that's done $100 million plus in fucking real estate deals.
	Dude, insane.
	You don't get access like this.
	So come on over, guys.
	Outro.
	W Show.
	We'll play the outro.
	We'll see you guys in a bit.
	Peace.
	I just ran.

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