AZREIA Executive Director Wholesaled/Flipped 600+ Deals

Steve Trang: Jump on the steep train. We real estate disruptors.

Steve: Hey, everybody. Thank you for joining us for today's episode of real estate disruptors. Today, we have my good friend Michael Delpreet with ASRIA, the largest RIA in the country. And, Michael is another operator in Phoenix, Arizona. He's gonna be talking about his journey to starting and wholesaling to running the largest RIA in the country.

If this is your first time tuning in, I am Steve Train, sales trainer. Every month, we help hundreds of people buy more houses at deeper margins. If you want to join us on our training calls, DM me the word sales on Instagram. I am on a mission to create 100 millionaires, and the information on this podcast alone is enough to help you become a millionaire in the next five to seven years. If you'll take consistent action, I promise you, you will become one.

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Share this episode right now. That way we can all grow together. And don't forget, we do have part in the disruption tomorrow. And this is a live show, so please ask your questions for Michael to answer. You ready?

Michael Delpreet: Yeah. I'm ready, man. Let's

Steve: do it. So first question, softball, is what got you into real estate?

Michael: Got me into real estate, man. Well, I'll I'll say like a lot of people, I was watching HGTV. Right? Working nine to five, trying to figure out, you know, what to do. You know you knew you were I knew I wasn't I was in a place where I didn't wanna be.

Right? Work you know, working the job, I had a young family, I had my wife. My son was, like, one or two years old, and I was like, there's gotta be a better way. Mhmm. Right?

So

Steve: What were you doing?

Michael: I was working Verizon Wireless customer service

Steve: Customer service.

Michael: Out here in Chandler. So the

Steve: ones you were taking the calls and people were complaining? Probably.

Michael: I was very I was pretty good. I liked it there, man. I was like, I I could compliment I compliment Verizon, man. I enjoyed the workplace, but, you know, having to check out every five seconds, you gotta go to the bathroom. Hey, man.

You went over three minutes this week. Like, I just this wasn't in my blood to to handle that. So, yeah.

Steve: Setting a timer for people to go on the bathroom breaks. You don't you don't think that'd be good tomorrow?

Michael: Gotta watch Josh, man.

Steve: Josh does take long bathroom breaks. Alright. So you're working Verizon, working customer service, and you're thinking to yourself, this is not the life for me. Correct. But you're watching HGTV

Michael: Which we love. Right?

Steve: Which we love. Little less than accurate.

Michael: Oh, well, I've learned that Alright. The hard way.

Steve: So when we'll talk about that. Yeah. When did you decide to take the jump?

Michael: Literally, you know, I pinch myself every day, man. I was you know, I found a guy on the Internet. He had a 100 free videos on how to wholesale houses. So, you know, and when I found that, I just watched them all Mhmm. And then I applied them.

Right? So I, like, I I don't know. I just to go back a little bit to to where that came from was, my friend was flipping houses in the boom. He's making a $100, $50. So this is, like, what, six, five, 6, whatever.

And I would just do in the trenches work for him, just side jobs. So I'm so while I was working at Verizon Wireless during the water cooler talk, people are like, yo, hotpads.com and all these websites. Houses are $10, $20. So I'm like, something's weird here. So I got curious.

So that that's what made the change. So I got curious to figure out how do I get out of this situation. And I just remembered my friend making all this money. So I was like, real estate. Right?

So how do I do that? So that led to me finding a gentleman that had a 100 free YouTube videos online, which at that time, as you probably know, was paid to play. Right? It was big courses, binders, CDs, all that stuff. So, that worked for me because I didn't have a big budget, the money to spend to get into the business, and I didn't know how to get in the business.

So I watched the videos and applied those videos.

Steve: That's how asking who that was?

Michael: Tyrone Taylor. Junk man in Alabama. Birmingham, Alabama. Yep. Thank you.

Steve: Yeah. So, I mean, that's awesome. Right? So, because he was putting on that free content Correct. It helped you take the leap.

Michael: Yes.

Steve: So, when was it that you took the leap exactly?

Michael: 2009.

Steve: 2009. So, you're watching your friend kill it during the boom. Correct. And then you decided to wait till things got really hard.

Michael: What? There was no decision. It's just how it played out. I had no idea what I was in or what was going on. Yeah.

So yes. Pretty much.

Steve: Okay.

Michael: But good. But was it hard? Was it really hard?

Steve: If you found the deal, it was really easy. If you found the motivated seller, it was really easy.

Michael: So if you

Steve: at that time.

Michael: If you did the right strategy at the right with the where the market is at, you'll be fine. Yep. I just went to it.

Steve: So tell me about your first deal.

Michael: First deal. So so I started applying the videos. Right? So what do we put out those? Mini billboards, band designs.

We all love those. Right? Those were huge back then. So Cypress Gardens, 69th Avenue, Indian School, big apartment complex or condo owned Yeah. Complex.

A gentleman called me, said, hey. I gotta sell my house. I need to move to Kentucky because my mother's ill. Can you buy this? Sure.

Yeah. Let me set the appointment. Go check it out. So I went to that house, and I offered them $12,000. Right?

Do so now think about that time. So anyone that was in the business in 2009, 2010, I'm dealing I'm competing with auction, foreclosures, cookie cutter homes, 2000 built or newer. So anyone that's, like, moving a lot of deals, they didn't care about the Maryville, South Phoenix section of fee of town, especially a two one condo to to top it off. Anything two one just wasn't flying. So it was a really but I didn't know I didn't know that.

So, got to the situation where we got it under contract, and the key there was he he needed to sell. He didn't want to sell. So that's the key thing where I think a lot of people get mixed up on. So he had to move. He had to go to Kentucky.

So that's how I got the contract. And the way I sold that deal, once again, was back on the Internet. I found this lady out in Tampa, the other guru city, and she was just like, just send a letter to everyone in the complex. And so you have a property you wanna sell. I was like, oh, good good point.

So sat there, pen, paper, wrote 200 letters. My phone started blowing up. So got the calls coming in. First call, hey. I wanna know if a Jared O'Connell has called you.

I don't even know why. I was like, who's this? What are you talking about? She's like, I run the HOA, and we're on a race to go buy the most condos in this complex. And I wanna beat him.

I want this deal. So I was like, oh, let's alright. Great. Yeah. So we met and invited her to the property.

And then the tough part there was I didn't know this. There were all three of us, the owner, myself, and the potential buyer are in this room. And she's like, Mike, so you only want 18,000. So I threw five on it because what was the, Steve got jokes. So, I threw five on it because anything I read in the Internet was thirty days, make $5.

Steve: Yeah.

Michael: That that was my there's no comping. There was no thought behind it. I just threw 5 k on it. She's like, you only want 5 k. So when you hear that, that's another thing.

Right? Shoot.

Steve: Left money on the table.

Michael: Left money on the table. But then the the hard part for me at that time was the owner looked at me and goes, Mike, but you're only giving me 12. And I was like, I didn't know what sales. Like, that's just how it goes, man. But he didn't care because once again, he needed to leave.

Right. Right? So that was the key. But, yeah, that was my first deal, man.

Steve: How long did it take from when you contract it with him till you sold it to that, HOA person?

Michael: Forty five days.

Steve: Forty five days.

Michael: Yep. Which, you know, I know it could take long usually takes longer or just you never know, man. I you know, it happened.

Steve: The fact that you hand wrote 200 letters, I mean, I think that's awesome. Yeah. And you kinda mentioned in passing that Tampa is the other guru capital. Yeah. So, I heard that they were, at that time, the capital, and then I think I think Sean Terry at some point kinda, like, pushed that mantle over here.

Michael: Yeah. I I bet he did.

Steve: Yeah. Okay. So that was your first deal. Sound like it was pretty seamless.

Michael: Very. Okay. Well, wait wait wait wait. I, I downloaded the contract, the assignment, whatever, on the Internet, whatever. I don't think it was from it wasn't from that YouTube or anything like that.

So in that conversation, you know, usually buyer pays all closing costs. The buyer goes, so, Mike, you're paying title insurance? Yep. Of course. You know?

Yeah.

Steve: That's how I roll.

Michael: That's how I do it, man. Just get this deal done. So I lost, at the time, was $7,800, you know,

Steve: at that time. Fees.

Michael: So that was my my tuition in part of it.

Steve: There you go. I mean, it worked. I mean, you still came out positive.

Michael: Yeah. 100%.

Steve: Was taken care of.

Michael: Oh, yeah. 100%.

Steve: Okay. So what what happened after that?

Michael: So driving for dollars. Mhmm. That's so they're going to my second deal. I just kept going. Right?

I was like, I didn't even know if this was real. I remember asking Tyrone. I had him on the phone one day. I was like, is this real, man? He's like, yep.

It's real. This is low key. And I was like, alright. So I'm driving for dollars, Central Phoenix, 7th Street in northern area. Found the ugliest house in in on the block, overpaid for it.

Right? Same thing. Driving for dollars, county records, handwrite the letter, send it, hope and pray that the owner calls you. And then, luckily, I got called and negotiated deals and locked it up for 90 k. Figuring out.

Right? So, locked it up. Now I was just shopping it. Once again, bandit signs, whatever I can do. And then, yeah, man.

On that deal so a gentleman called me. I had Google Voice, Craigslist, the whole whole nine going. And I got a call. I was on my fifteen minute break at Verizon checking my voice mails. Right?

And and the, guy goes, hey. I like this property over here. I like to check it out. Give me a call. Here's my name.

Here's my number. In my head, I'm like, I know this person. I know his name and voice. So I was like, let me call. It must be him.

So it was I knew this person from high school. I was like, he was like, what are you doing? I'm like, I'm trying to wholesale. He I was like, what are you doing? He's like, I've been wholesaling for five years.

I was like, ah, okay. He's like, come down to the office, and let's chop it up and see what's up. Yeah. So went to the office. End of the day, you know, we got to know each other, hit it off because we knew each other in the past.

And when he invited me to the office, he said, bring all your leads that told you no. Why do you want those, man? Like, they told me no. Right?

Steve: Mhmm.

Michael: So so what happened there? Right? So he he could see the invisible. Right? So if I was to go to your job, your place of business, your work, and I was just told you train me today, you're gonna go I know exactly the hurdles you're gonna have, all the issues and problems.

So he knew that. So he told me to bring all the dead leads. So what did I what was he thinking?

Steve: Gonna close those deals.

Michael: He's gonna close them. Right? Because I comped it wrong, evaluated it wrong, didn't find the pain points properly, whatever it may be.

Steve: Mhmm.

Michael: So within four months, I had, three closed deals and I, like it was, like, $15.20 grand in my bank account. Yeah. So he just had my first deal under my belt. Then because I leveraged a mentor, business partner turned into a business partner, I had, you know, $15.20 grand. I'm working at Verizon Wireless.

Like, you know, it takes me, like, two, three months to make this at the time. Right? So I'm like, what am I even doing here? So I got really excited. So it was real.

That kinda goes into the, like, the leveraging. Right? So after speaking with that person, it was like he had the five years of knowledge and experience, but my background before Verizon was selling selling concert tickets. I used to bring hip hop concerts to Phoenix. So I was able to put people in a room, make my phone ring.

So I made the phone ring, and he converted the deals. So traffic times conversion equals revenue. Right? So that's and then we hit it off. So that was my first my second deal led into, like, five deals, which led into 30 deals in my first year because I joint ventured with, the gentleman, and we just hit it off, and we just hit the ground running.

Steve: So there's a couple of things here. First, you were doing this while you were working your full time job.

Michael: Correct.

Steve: So, how did you make that work? And that might sound like a really ridiculous question, but there are people that struggle with this. So how did you make that work?

Michael: One, so if so I had my wife and my son. He was young at times. So support for everyone needs to be on board. Everyone everyone in your family needs to understand what you're do That's number one key. Right?

It's hard to do something if no one supports you. Right? So my wife supported me in that. So that's one. And then you just make it happen.

Mhmm. Right? It's like you wanted it or you don't. Like, I don't I don't have the best answer. So out my shift was from 2PM to 11PM, and my days off were Sunday and Wednesday.

It was a weird schedule. Right? So I had to wake up at six, five, six in the morning, get on the computer, figure it out, get my marketing going, go and drive for dollars. Whatever it is I had to do, I did that till eleven, then you gotta get ready for work, lunch, blah blah blah, you know, drive an hour away. Right?

So that was just just that's what I had. Right. Yeah. So, I mean, you had I had to want

Steve: it. Anything you had to do to get your wife on board? Nope. What about quitting it? Like, when was the right time to quit?

Because I think that's another part, part. Right? If someone's doing this and making it work, they're like, when's the right time to, you know, just bounce?

Michael: So for my situation, I I knew I had the support at business partner. Right? We had deals under our belt. We had deals in the pipeline. So I would say along those lines, right, is you is if if you did it the way I did it, I was I was building my security blanket as I go.

So it literally took me six months to quit my job with a partner. So I had to partner. We had marketing out. We had deals clawing closing. I had the support.

I just I just made it happen.

Steve: How long was it from when you started till you closed your first deal? Well Or found your first deal?

Michael: Well, the first deal, that was forty five days.

Steve: So no. From when you say, I'm gonna start wholesaling.

Michael: Oh, the research and development kind of phase

Steve: of that? Yeah. You're checking out what what you're gonna do, how you're gonna accomplish it. Man. Bandit science, YouTube videos.

I really

Michael: jumped in, man. It Yeah. Maybe. So if you wanted to say from when I started marking was forty five days, so the research, maybe a month. Okay.

Steve: Like,

Michael: I I went right in.

Steve: So you're more, action oriented?

Michael: 100%.

Steve: Okay. And then, we were kinda laughing about the, the the HDTVs has a little little less than realistic. So you say you found out found that out the hard way?

Michael: Yes. Yeah. Well, I mean, it's just not it is what it is. Right? Well, one, we're talking about buying right.

Right? Like, you know, you gotta know how to buy the property correctly. So if you don't that just theirs says it all. But there's this things, contractors. Right?

They disappear. I I

Steve: That seems to be a theme for everyone on the show. Like, the contractor just kinda disappears.

Michael: Yeah. So that would that's still a learning curve to this day. Right? Like, just getting the right people on the team to get the project done. So I get it.

You know? You know, anyway so, yeah, I don't know where you wanna go with it, but the contract say

Steve: the lessons learned that were were different than what you expected. The the money.

Michael: Yeah. Sometimes. Right? So if there's those mistakes or, there's just so many things that can cause lag time in in a deal, those hard money payments add up every month. $2,000 a month adds up quickly.

Right? If someone's late on a project that builds up, you know, your your expenses, man Yeah. Just last project, we just did, whole new electrical panel permits, like, no another month. Right? You know?

So

Steve: It's aggravating. Right? Because, like, that permit shouldn't take that long, but it does.

Michael: It does. Yeah. What are you gonna do? Right? I mean, he's gotta roll with it.

Steve: Yeah. Hurry up and wait.

Michael: Buying right again. Right? So do the best you can to get that margin in there to protect yourself.

Steve: So what was your first major challenge or struggle in your journey?

Michael: First major I would say, man, I had a pretty good going going in the beginning, man. So my first challenge, I would probably say when I broke away from that partnership. Like, that was that was the biggest biggest hurdle, man, because you're going The

Steve: one with your friend from high school.

Michael: Correct. Yeah. Because you're going into a whole new realm. Right? So you start the business off with a partner you always have something to lean on.

You're at a bigger level doing more deals, and then now you're just going to a whole separate by yourself. Mhmm. No team, solo, and now you're just like, shoot. And then there's, like, legal issues that were there and battles and tourneys. So it's really

Steve: That's part of the the the separation?

Michael: Yes. Yeah. Yeah. So so that hits you in the mind, man. Right?

That takes a lot of energy out of you just for for your family and your day to day basis and just having that always working on that. You're cutting checks to the attorney. My attorney takes this out. He goes, once you pay hire an attorney, you lose. So if your attorney tells you that, like, that's a

Steve: yeah. Yeah. No. It's, I mean, the the it's an old joke, but it's still true. It's that in every lawsuit, the attorneys are the ones that win.

Michael: Yeah, man. It's unfortunate. Yeah. That was a hurdle.

Steve: That was a hurdle. How was it, like, once you get well, you're saying it it gets in your head. Anything you do specifically to get past that?

Michael: I think it's thinking of the future. Right? Like, if you just dwell on the past and you sit there and you think about what happened and, of course, strategy wise, you gotta think about what's going on. You gotta understand the situation, but, like, you just dwell on it. That's where you're gonna get caught up.

And then when you have a past you're thinking about the past and you start getting those low feelings and you didn't you don't take action, then your self confidence goes down. You just go down this spiral. Yeah. So you gotta just think of the future. How am I gonna get out of this?

Who can help me? What am I gonna do when this is done? And then Yeah.

Steve: Because it can very quickly turn into a vicious cycle.

Michael: Oh, terrible. Yeah.

Steve: So you parted ways.

Michael: Correct.

Steve: And then what was it like after you parted ways?

Michael: Well, that that situation's kinda lingered around. We won't go deep into that. So, I was solo, man. Just did it back to square one.

Steve: When did you go back to square one?

Michael: It was at two years. So I did that that relationship was for two years. Mhmm. And then I went solo and did it jumped right back in by myself.

Steve: Got it. Okay. So, I guess one of the things that, I know about you is that you leverage other people's money.

Michael: Mhmm.

Steve: You're really good at leveraging other people's money. I think one of the things that comes up a lot is, like, how do I get private capital? And maybe even right now because capital might be a little more tighter these days. I've noticed some of these hard money lenders are raising the interest rates or raising how much you need to put down. They're lowering their ARVs.

Michael: Mhmm.

Steve: So how what did you do or what have you done to raise private capital?

Michael: Well, when I don't talk to those people.

Steve: The hard money lenders. Yeah.

Michael: Yeah. So well, you do. But, like, you know, for raising money. Right? Other people.

So before I even raised money, I I got my first two rental properties off of a cash buyer. So I was able to bring deals to somebody where he's buying a lot of deals from me, and it came to a point where he just by grace of God, man, this guy was like, you wanna own this property? Like, I'm like, what the heck? Like, I sold you the deal, and then he gave me, the opportunity to become part owner of the deal. So that that's how I really got into it.

So it was actually got my first rentals leveraging a buyer bringing me in on the deals because he was I don't know why. Like like me or whatever it was, man. So we got paid to wholesale it, then he fixed it up. He did everything, got it rented. I got a portion of the rents and ownership in the property, and then, that's how it started.

So it actually started you leveraging people to get rentals was just people, not even my money.

Steve: Yeah. And then what did you do after that to, raise private capital?

Michael: Raise I would say influencers. So I would not social media influencer, just like community influencers, hairstylists, barbershops, attorneys, whoever has some type of influence over a group of people. Right? So that was always a key for me. That's how I raised my first $50,000 when my wife and I went to hair salon.

So at the hair salon, you know, she she's always paying attention to the conversation. So, one of her clients was like, hey. My my husband's sick of the stock market. He's looking for alternatives. Like, talk to Mike.

Mhmm. So just because that relation I walked in that door. I wasn't there fifty or thirty minutes. I raised $50, and he didn't even know the address. Alright.

You know? So he like, when we're going that's why I said I don't talk to those people because he'd it was it was me. He he believed in the relate my wife, myself, he believed in us and our character when was willing to lend the money. So it wasn't nothing to do with, ARVs and comps and any of that. So Right.

I focus on people that have influence on people, and I also say educate to dominate.

Steve: So when you're talking about focusing on influencers Mhmm. What it what actions you're taking? What word tracks are you using when you're when you're speaking with them?

Michael: So have you ever Jay Massey, you gotta give this credit. Have you ever considered getting involved in real estate investing? Simple question. Yep. Everyone has an answer.

Yes or no.

Steve: Right.

Michael: And then you just engage from there, whether it's no, why not? Mhmm. Yes. What are you doing? Mhmm.

And just keep going. Keep the flow. And then the flow here is educate to dominate. So then you have to invite them somewhere to where you could show your expertise.

Steve: Yeah. And so you I don't know if you're still doing this, but I I've noticed in the past, like, you have, like, a monthly cash flow game.

Michael: Yep. You still do it? We just kicked it back up at Azria

Steve: Okay.

Michael: Three months ago. Yeah. I mean

Steve: So explain to me the idea behind the the cash flow game.

Michael: The idea so check out Robert Kiyosaki. Obviously, he invented the board game. It's basically, a simulator for real estate in stocks. So it's real life on a board game. So he would say in monopoly, you you're trying to bankrupt your friends.

So Yeah. You're trying to win. Right? Which is fine. So but you don't wanna bankrupt your friends.

Wealth is a team sport as we know. So as and I've learned that at the longer I'm in the business. And, it's about getting on the board game, going through your daily life obstacles with a paycheck, and and you get a job. Right? Like janitor, pilot, whatever it is.

And you just gotta get your income from your assets above your expenses of that job that you get.

Steve: Right. Right?

Michael: So and you just go through the moment and you get the deal cards. So you get the opportunity to pull deals. Right? And you gotta make a decision. So the the first three times you play, you will act as you do in normal life.

Mhmm. Right? And you just sit there and you click paychecks, and nothing happens for two hours.

Steve: Two hours? Well, it's well,

Michael: we it could go longer, but Yeah. We put a cap on it. Right? But but I'm just saying, so it it helps you stretch. Alright.

There's a foreclosure. I have an opportunity to do it. Well, I don't have a good enough paycheck. Well, what about this player over here? Do they have money?

Can you do a deal with them? Can you do some type of transaction there? What about this player? Yeah. Whatever it is.

It gets you thinking, so it's a good, simulator.

Steve: Right. And, what you're talking about educated Dominique. Right? So you you invite them in, play cash flow.

Michael: Correct.

Steve: You're shifting their mindset on money. Yep. And what happens after that?

Michael: Well, what first happens is you start getting moments. Like, oh, you can you you can buy a house from foreclosure or from a divorce. Right? Like Mhmm. People don't so stuff like that, we might take for granted, Right?

For all these pain points where we we market to where the average person is just like, no. I never heard of that before. So it's opening up their eyes. So who are they in front of when they when they get that a how moment? Who gave that?

Sure. Yep. Exactly. So okay. Boom.

So any way I can get someone to have an moment with real estate to help their life is is the way to educate Dominique. So you invite them to the game. They see the moments. They see the possibilities in their life that they never thought about, And then you just encourage encourage them to take action on that and show them how you can help them.

Steve: Mhmm. And

Michael: it easily leads into something.

Steve: So then what kind of, like, is there a pitch? Is there do you offer, like, you know, here's what we do? Or, like, what kind of direction you go after all that?

Michael: So so not at Esria, but, like, when I used to do it, so it would basically, like, hey. See all those cards? The foreclosures, the divorces, borrowing money. That's my phone, man. Like Mhmm.

I I'm in this business full time. You might be part time right now or, excuse me, working full time, but that's my I'm those cards. So if you want more access to those cards, let's sit down and do it invite them to another kind of sit down. And then what I would do there is what we call investor identity interview. So what who are you?

Like like, I don't wanna borrow money from anybody that's good that I can't help. Right? Like, I gotta be able to my real estate project needs to help you get your goal. Right? So, yeah.

That that's it. So just sit down and see if there's a fit.

Steve: So there's a consultation. Mhmm. Find out what their objectives are.

Michael: Very business like. Yes. See, I don't even throw that right. I don't even talk.

Steve: Well, you wouldn't use those words. Yeah.

Michael: Yeah. Go

Steve: ahead. That's right. Consultation. Right? Figure out

Michael: whether Of course.

Steve: What their goals are.

Michael: Mhmm.

Steve: And then from there, figure out whether you can help them achieve their goals.

Michael: 100%. Simple as that.

Steve: I love that. And then the the, the cash flow game, I haven't played the adult version. This might sound really embarrassing.

Michael: You play

Steve: the kids' version? But I my kids have the kids' version.

Michael: Okay. Okay.

Steve: And they'll actually break it out and play it for fun. Like, it's awesome. Brilliant. Right? So, like, that's my retirement plan.

Right? So it's it's it's it's, I'm I'm really hopeful with that one.

Michael: Yes. Yes.

Steve: If you had to estimate, you know, as far as private capital, do you have, like, a ballpark of how much you have access to at the moment?

Michael: I would say I I don't know. I have a lot of relationships, man. So I really just I would say I've been lucky with a smaller group of people doing a lot of deals. Mhmm. So to put I guess in and this also depends on those people when you call them, where are they at in their life at that time.

Steve: Right.

Michael: Right? So can I say millions, no 100,000? I don't know, man. So gotta pick up the phone.

Steve: And then do you have a as, like, a a BRRRR model where you're borrowing from them and then doing a cash out refi, or is this forever you're paying them on the on the on the loan?

Michael: So being into deals and doing a lot of marketing, I would say comes to the top of what's in what's in the pipeline. Mhmm. Right? So, like, we've recently bought rentals, wholesale deals, two flips going on. So it's like, where what's the project?

Yeah. Right? And what so did that investor when I did the consultation, they want lumps of cash and want fast cash. So those people get the fix and flips or the wholesales. Right?

The turns. So if someone's looking for long term IRA, four zero one k, whatever it is, you know, bring them the rentals. So it just depends as the flow comes in.

Steve: And And, again, what their goals

Michael: are? Exactly. Yeah. It goes out.

Steve: Yeah. I I'm I'm curious because, like, John Burley is a mutual friend. Yep. Alright. Someone I met through ASRIA.

Yep. And, his model is basically raising private equity, like, having a private equity fund.

Michael: Mhmm.

Steve: He's just raising all these all this money, and he's just doing deals with their with their capital. And he doesn't have to find any more money. He has to find deals right now because he has access to so much capital.

Michael: Yeah, man. He's great. It's a crazy He's really model. Yep.

Steve: And then somewhere along the way, you started a call center. Yeah. Yeah. That What like, how did that happen?

Michael: It's a longer story, but, like, they go into, like, the leverage kind of thing. So as as I was doing deals and this was probably, I wanna say, 2017. So I was at a I was at a point where direct mail, as you may know, you walk into a homeowner's house, like, it was like a rainbow of color paper. Right? So it's just like it was ridiculous.

So I remember, you know, do spending a couple grand and getting a couple deals. Right? Like, it's that time was just gone. So I was at a

Steve: I miss those days.

Michael: We all do, man. So I was at a point where I was just like, I gotta do something different. I gotta be curious again. Right? You know, I was getting a little comfortable, you know.

So, come along, a gentleman I know you know well, Carlos and Sal. Right? And these guys were and Jared, like, I would say those guys are the pioneers in skip tracing and call center stuff like that, which thank you very much, watching Carlos' IG lives, for sure. So, I just dived in, man, and I got curious. So once again, always just like networking and building relationships.

I had a buddy call me and say, hey. Hey, Mike. What are you doing these days? Just catching up. I was like, told him what I'm trying to do.

So skip tracing calls and got away from direct mail, all that stuff. And he's like, cool. Well, you know, our buddy Scott, someone I knew from and, again, back in the day, but didn't really keep in touch with. He's like, he does calls he, like, he runs call centers, man. I was like, oh, okay.

Cool. Put us in together. So I started hiring Scott for call center work for me. I didn't do The Philippines or anything like that. So because he was outsourcing to Mexico.

Alright. So he had that's where all his relationships were. So started talking to Scott, and we started working together. I was hiring his services, and I saw what he was doing. He was taking American companies to Mexico, and he was playing the margin.

So that's what we do in wholesale. Right. Right?

Steve: Just arbitrage.

Michael: We're just arbitraging both of us. So we're like so we just got to know each other really well, same values, kicked it off, and he was like, we started talking. Let's do this together. Mhmm. Right?

Let's build up agents. Let's start offering agent services to real estate investors and agents and all that stuff. So we started doing that and started growing our reps our agents our representatives at the call center by leveraging other call centers out there. So that's and then we got in turn, we got up to ten, fifteen at a time, like, agents calling for our business.

Steve: Mhmm.

Michael: So that was just snowballing going well. And, just, you know, being in it, man, swinging the bat, he had an opportunity from his relationships to start a call center. Like, not leverage and go out and, outsource it to get our own building and our own company name, our own representatives. So, yeah, I'm in. So we just leveraged the real estate investor services Mhmm.

As well as small business. We're doing, like, pest control, roofing, setting appointments, and it's it was just high turn rate. Right? Because inexperienced business people, like, they're just new they didn't see the value in me giving you free appointments to go provide your service. It was kind of frustrating and a lot of turnover.

So when you're hiring someone in Mexico to give them a full time job and then the real estate investor quits their service. And then, like, this person without a job. It's kinda it's not cool. You know? So, we still get more serious, and we started getting, legitimate, like, anchor clients, corporations.

And that's how we led to 300.

Steve: Got it. Yeah.

Michael: So you

Steve: were saying you were leveraging the other companies down there? I mean, were these companies you were just raiding and pillaging or, like

Michael: No. No. No. No. No.

No pillaging, man. No. Once again, Scott's relationship, he had a buddy that had a an office. It was probably like it was like a boiler room, man. Like, 15 people are in packed downstairs, but it was what we could afford.

Steve: Yeah.

Michael: And he would do, the gentleman down there would do all the hiring and firing and training for us and, and keep the room filled, and we would keep the business. He'd keep the reps. And it was kinda once again, just leveraging everyone's, you know, resources.

Steve: This is totally off topic. Go for it. But, you know, we were having our mentorship call, the other day.

Michael: Mhmm.

Steve: And the guy was talking about how, some of the VA agencies, virtual agencies. Right? They their training that they have for their salespeople.

Michael: Okay.

Steve: He was, talking to one of them. He's like, yeah. How do you train your VA? He's like, oh, we just put them in a room put them in a room put them in a room and make them watch boiler room. Oh.

I was like, oh.

Michael: That's intense.

Steve: That's one way Yeah. To train them in sales.

Michael: Wow.

Steve: Very fascinating. You know, I I forgot to bring them here. So, like, there was a time back in the day, Max and I, we sold you a deal.

Michael: Yeah. That's true.

Steve: I we're like, hey. We got this property. Who do we know, that'd be willing to buy a fiveplex? And I look back, and I shared with you. Like, I look back.

I was like, man, we shouldn't have sold that to Mike. That was a mistake. Yeah. But you said, no. It's not as big a mistake as you thought it was.

Michael: Yeah. Yeah. Yeah. No. That goes back to right?

Like, relationship building. Right? Networking. We sat down at Starbucks down the street somewhere. Right?

Steve: Yeah. Over on Broadway.

Michael: Yeah. You're just, like, taking notes. I'm like, man, this guy's, like, really I was, what's he doing? So, yeah. And I think you were just, like, got this deal.

Steve: Well, that was a time where we needed capital more than we needed cash flow.

Michael: Got it. Right?

Steve: So I was like, you know, looking back, like, you wish you'd keep it, but you'd mentioned, you know, like, there there was a lot of, work that had to go into that one.

Michael: If you wanna okay. That's a good one for HGTV. So, bought that property.

Steve: Good. Now I'm feeling really bad about myself. Continue.

Michael: I'm gonna make it even worse right now. So so so we bought that property, literally drove it, sight unseen, and I was, like, trying to negotiate you. You're like, no. I was like, shit.

Steve: Yeah. There was not a lot of negotiation.

Michael: From Steve whatsoever. So I paid what you wanted, bought a sight unseen. Alright. Cool. All month to month.

All that stuff. Great. So I get in it. Take it down. We buy it.

One, I walk in the backyard. There's literally, like, 75 tires under a tree that I didn't see. And that's a whole another ballgame when it comes to, you know What's recyclable? It's fine. Yeah.

It's recyclable. Not not where I went. So, long story short, all tenants stop. No rent. Right?

Thirty day notices, waiting it out, hard money kicking in. Right? No one's paying. Served for five days. Everybody.

Mhmm. We have leases. What are you talking about? No. Month to month.

You don't have nothing. Let me see. No one shows nothing. So five day, go to court. They come to court and they're like, we have leases and they all pulled out one year leases.

All four of them out of the five. And they're like, we're here. I'm like, I'm looking at the papers and I'm like, telling the judge, I'm like, these are fake. No way. What?

He's like, that's another case. I'm like, right? Yeah. He's like, I'll do something for you. Did you guys bring rent?

No. He's like, gotta go. You know? So you didn't bring rent.

Steve: So So the judge helped you?

Michael: Yeah. I would say if he I maybe he was gonna ask anyways, but, like, he was like, yeah. Where's rent? Pay it. You know?

And they're like, oh, we don't have it. Alright. Then they're like, alright. We'll leave. We'll leave.

You know? So it took another two weeks to get them out. And yeah, man. There's all tweakers in there, man. So they re they were stealing electricity.

Steve: Mhmm.

Michael: They're stealing cable and Internet.

Steve: They're borrowing.

Michael: Bar borrowing. Yes. Well, very talented. I I'm like, can't get a job. Or it's like, you know, so anyways, they're stealing.

They were they were mad, man. They they had they were very comfortable. So it was really hard to get them out. They redid, like, all the gas lines, all new gas line. So

Steve: You got free labor out of it?

Michael: Yeah. You did not the labor I was hoping for, but yeah. You said

Steve: you had to undo all that mess?

Michael: All of it.

Steve: Now what what what would you estimate if you recall? You had you had to put into the property just to get it rentable.

Michael: Well, here's what I we ended up doing. I started getting bids on that. So budget wise, everything, it was gonna be around 150, $200.

Steve: Really?

Michael: Yeah. Oh. It it but what we did was because we bought it right Mhmm. And the market was on our side a little bit. It wasn't as hot back then.

It was kinda getting there. Yeah. We flipped it again.

Steve: You flipped it? Yep. Alright. And you came out positive?

Michael: Came out positive. Okay.

Steve: So I don't feel terrible.

Michael: Yeah. Yeah. Don't feel bad, man. I was a little upset about the, the leases. When they brought the leases, I was like, damn, Steve.

You know? But no.

Steve: But then Hey. We gave you what we had.

Michael: Yeah. As is. Right? As is, whereas. But, Estoppels.

Fill them out.

Steve: Estoppels certificates.

Michael: There you go.

Steve: Yep. We actually had the for the first time I ever had to fill one out, right, because, like, the the owner of this building

Michael: Uh-huh.

Steve: Sold. And they're, like, you guys need to notify, get this notarized. Like, I don't have time Yeah. To get this notarized.

Michael: Notarized. Wow.

Steve: Alright. So I had to get a notarized, estoppel certificate. So, you know, walk over to this auto company right over here. But, that was kind of a,

Michael: Yes. You learn things as you go. Some things you don't find in a book, man.

Steve: Yeah. So then you also recently partnered up or not partnered up, but you recently took over, the largest RIA in the country. Yes, sir. So that's not a small feat.

Michael: No. No. It's very yeah. A big project, man. Very exciting project.

And that just kinda goes into everything I was doing, man. Yeah. I just took that over within a year.

Steve: And, you did it in the most interesting of times.

Michael: Yeah. Right? Very.

Steve: I can't

Michael: say that.

Steve: Because, I remember, like, there was I wanna say it was it it was either the March it was probably the March Yeah. Event, March 2020. It was around there, February or March, and we're looking around. It's like, no one's coming.

Michael: Like Yeah.

Steve: This is a very slow event. Yeah. What is happening? And then, obviously, we went through COVID, but this is around the time when you were looking at it or, actually, you know, I'm assuming here. Tell me about that journey and talking to Alan and figuring out how to work get involved with Azria.

Michael: Yeah. So with Alan, founder of Azria, ran it successfully for twenty years, man.

Steve: Super sharp guy.

Michael: Very sharp. And

Steve: he can see right through you.

Michael: Yeah. Yep. He he's businessman. So, so it actually happened, like, after COVID. Mhmm.

You know? So he had brought it up to me years in advance because I was I've always been a part of Esri. Always in the community.

Steve: Always ran the, Phoenix Real Estate Club.

Michael: No. No. I well, the beginners group, and I would teach you, like, raising capital, creative deal structures. I would teach all those classes. So Well,

Steve: because I I would always see you at, like, haves and wants. Right?

Michael: I was I was doing business, man.

Steve: Yeah. I know. Yeah. Right? Because

Michael: that's why I was there. I didn't host it. But Alan always hosted hosted that. I do now. So, yeah, man.

So it happened after COVID. So Alan brought to me in the past. And then, you know, after COVID, we started talking about it. Just how can I be involved more? And he he he had a wealth plan.

Right? He created a plan, and he executed it. So he was at the point where he's divesting, and this is one of the projects. Yep. So he just thought I was a good fit.

Steve: So he looked at you as someone like, man, this guy would be a good person to, pass the what's the word I'm looking for?

Michael: That's Is it

Steve: Yeah. Pass the torch? Pass the torch. There you go. Thank you.

So passing the torch for, taking over the Ria. Now, you know, brag a little bit about about ASRIA. Like

Michael: Alright.

Steve: Why why ASRIA? Like, why is this a worthwhile endeavor for you?

Michael: Alright. Because your members of ASRIA are not customers. They're members. Mhmm. Right?

They're number one. There is no ASRIA without members. Right? So that's how it's always been treated. And I think that's why it's been open for twenty years, whereas you see a lot of events and a lot of, groups and whatever.

We're not even a group. I don't even like to consider us that we're an organization

Steve: Yeah.

Michael: That they come and go. We found out every twelve to eighteen months. Someone starts up and they're gone. You know what I'm saying? So, like, even during COVID, like, we're always there for you.

So that's what I mean. Like, COVID, we had our property management property manager, business associates. We had Mark Zimin from Zona Law giving us moratorium updates every month. Like, we didn't disappear when things got hard. So, that's what we're proud of.

I feel like, you know, we we represent you, and we're there for you through your whole real estate investing career. So, you can count on us.

Steve: One of my biggest regrets, in in the real estate business was I remember still going to an Azure event. The annual event. Right? November, I wanna say 2007.

Michael: Okay. Wow.

Steve: Right? And I I remember going when I You're old. I am old. Right? I remember going to the event and looking around.

I was like, what is this place? What are these guys talking about?

Michael: Mhmm. Right?

Steve: Because I read, you know, Rich Dad Poor Dad. Understood that to some degree. And I was recently licensed, and I'm I'm out there looking for investors because right now

Michael: Okay.

Steve: We need investor buyers. Right? So I'm Mhmm. I'm walking around. I'm looking as, like, these hard money lenders.

Right? I it was, like, a three letter company. It's like AVG. What is it? I don't remember.

But they were, like, 18% interest.

Michael: Oh.

Steve: And I was thinking to myself, like, that's ridiculous. Like, that's a credit card interest rate. Like, why would anyone ever borrow at 18%? Right? And then this is also the same time where you can buy these houses in Maryville for $30.35 grand.

Michael: Mhmm.

Steve: Yeah. And if I would've just not been so hung up with my old limiting beliefs

Michael: Mhmm.

Steve: Right, like the, paradigm that I had in my head back then and just borrowed at 18%, I would've cash flowed from day one in Maryvale.

Michael: Oh, easy. Yeah. Oh my god.

Steve: There is so much opportunity out there. Instead of borrowing 80% and and gobbling up all those properties

Michael: Mhmm.

Steve: I was instead helping other people buy those properties.

Michael: Just making

Steve: your money. Realtor. Mhmm. Making, like, you know, $800 here and there.

Michael: Oh, that's true. As a realtor, that's the yeah.

Steve: Yeah. Not a good business decision. But Yeah. Like I said, you know, like, one of my, business regrets.

Michael: Okay.

Steve: So, like, I think, you know, there's incredible value that Azure provides and, you know, if you'll seek it and take advantage of it.

Michael: Just like being curious, getting out there, shaking hands, meeting people. You never know who's in that room. Right? Like, there's people that are just getting started, and you'll talk to someone that owns 500 houses. It's like and they're they're not out there boasting, but I would say a lot of our members love to help each other and and help each other grow and and do deals, man.

That's what that's what we're able you could get there and go go go there and do deals, man. That's what we do. Support education, everything.

Steve: And then, so before we jump into the questions, you know, we do get people that are curious finding out, you know, what is that we offer exactly. So

Michael: Mhmm.

Steve: You know, we do have our event coming up. But instead of telling you guys about it, show you guys a quick video. His sales training is unbelievable. Right? There is other sales training in theory.

Going through this stuff with how he breaks down his business is this is, like, invaluable, because there's no other way to get this type of like this type of access with someone who's such an open book about every little thing that is completely applicable to my business.

Speaker 3: Anyone who wants to bring that business to the next level, anyone who wants to close thirty, forty, 50% more of the deals, I mean, there's no one who wouldn't benefit from being better at sales.

Michael: I

Speaker 4: mean, anyone in real estate, anyone, I mean, anyone that has any entrepreneur that has a business, not all the information may be presented to you, but time management, knowing how to work with people, having sales skills, because I think we're all in sales and marketing, and it could present anybody, honestly.

Speaker 5: I would have to say it's asking questions. That's the biggest thing. You don't wanna give an answer right away. And if you're able to, answer their question with another question. And also that along the process, it's gonna be very uncomfortable talking to the sellers, asking the questions that you need to and digging for pain, but that's gonna come with experience.

So

Speaker: if you're struggling, I think this is David that you need to come to to make sure that you take your business to the next level.

Steve: So glad you asked. His self. Okay. So, the first question we got is from, Instagram. Catherine Olivia wants to know, what is the best way to convey trust to real estate agents when you're turning up to pitch in person?

So I'm guessing if you show up to an appointment and the seller is there with a realtor, how do you convey trust?

Michael: How do you convey so we you go up to an appointment. You go and talk to a seller, and there's an agent there.

Steve: Mhmm.

Michael: I don't think there is no. You don't convey. You just be yourself. Right? Mhmm.

You know? So who cares that the I used to be okay. Hard money, cash buyers, ages. I used to be nervous when I first started. Like, oh my god.

They know so much more to me and get all these thoughts in your head. Right? Just go there and do what you're supposed to do. I'm here to make an offer. I'm here to buy a house.

You wanna sell, I wanna buy.

Steve: And that's simple. That's that's the truth. Right? The one thing I'll just add to it is, anytime you have someone who is the authority figure. Right?

I learned this, back in my realtor days is that you want to ask that other person who's there to protect said client. Right? Okay. What's important to you? What do you need to see so that you feel comfortable that, you know, you're taking care of this person?

So just Great question. Just one one part in there. So now they feel important. We we've taken care of their ego, and now we could just deal with focus on the prospect.

Michael: Cool. Same thing we're talking about the interview with the raising money. Right? What do you want? What do you want?

Yeah. You're just trying to see what they're trying to achieve here. Yeah.

Steve: That's Yeah.

Michael: Great great one, Steve.

Steve: And then on YouTube, we got gamer Chris. What's the best real estate wholesaling program you can buy today? Really putting you on the spot in this one here.

Michael: Well alright. Real estate wholesaling. Well, do I have to can I say my own?

Steve: You can absolutely say your own.

Michael: There's not a We have a wholesaling class that we're bringing back in the fall, and we also have a program called the deal finders club. So you can it comes with a wholesale twelve week wholesale course, plus you get two mentors, Marcus Maloney and I. So, of course, that one but I would say, the best one, man, I really haven't bought any recent recent courses, but there's a lot of great people out there, man. Shontere's, the the all in guys, yourself, like, a lot of great there's a lot there's a it's there's all the information is great. It's just you gotta do it.

That's the key. Like, it's all the same. I'm not saying it's all the same, but it's pretty much

Steve: Same principles. Same principles.

Michael: You might resonate with the speaker better than others, but, just go grab one and get it.

Steve: Yep. And then Carlos, this is a question for me. Why do we do lives at this time? I need to work because I need to not work after hours.

Michael: I got

Steve: kids that, I need to spend time with. That's the reason why I apologize, Carlos. Yeah. Ingrid, on YouTube, do you compensate the influencers that bring you private money lenders?

Michael: Come so when I would say it's not com no. So when I'm raising money, I don't know the rules, but I don't, like, give people money for bringing me money kind of thing. So, but it's more of a long those influencers are long term relationships. So there's other things that you do, whether it's event tickets, dinners, showing appreciation. So it's it's that human connection, just things you would do for a friend, kind of relationships or send them business to their place of business or Right.

You know, recommend them. So it's just a mutual.

Steve: Be good referral partner.

Michael: Yep. Simple as that. Yeah.

Steve: Another question from Ingrid is, are teenagers allowed to go play cash flow? She is in Phoenix. Oh. So Yeah. Of course.

Yeah. Her 15 year old is great at the junior cash flow game.

Michael: Let's do it. Bring them. It's a family thing. Right? Like I said, it's for our members and their kids.

We we want to help the the kids. Yeah. I wasn't I didn't learn none of this till I was 30. You know what I mean? So it's like so your your kids bring Ingrid.

Bring your kids. Yeah. We'll help them. We'll teach them. Robert Kiyosaki offered 10,000 board games to the state of Arizona and they declined it.

Really? Yeah.

Steve: That's shocking.

Michael: So who knows? That was a long time ago.

Steve: I was supposed to be having dinner with him. Oh. Someone was, inviting me. He's like, you want me you wanna go? I was like, yes?

Yeah. Of course. I'll be there. I didn't wanna sound too eager.

Michael: Yeah. Okay.

Steve: I got you know, let me check my calendar, make sure, you know, I have time. I have an opening.

Michael: That's huge, man. Congratulations.

Steve: And then, Grant on YouTube wants to know, how has your wholesale dispo strategy changed over the past couple of months?

Michael: Well, buyers one thing I I mean, Jack Martin told me this. Buyers go through cycles. Right? So it's not you're always looking for the buyer. Right?

Yes. You can get a group of hot buyers. Remember, there's some that buy one house a year. There's some people that buy 10 a month. Right?

So I think it's a constant thing you're always building. You're not just you're always adapting to. Right? So hedge funds are here. I buyers are here.

More corporate situations. So, of course. So, we're gonna go to them. They pay more money. Right?

So it's be being in the trenches and knowing who's there buying and just linking up with them. Going into if whatever's happening now and all these changes, I would say I think it's more important than ever because the buyers are gonna change right now. A whole new breed of buyers

Steve: Oh, it changed.

Michael: Oh, yeah. Yeah. Exactly. It's changed. It's changed.

So there's gonna be a more educated savvy investor that's coming in town, and you wanna be in front of those people as they come in. So I would just say get aggressive on, looking at closed transactions and building your relations coming down to the RIA and, seeing who's out there buying now because this opportunity challenge buyers that we had for the last two years aren't aren't gonna be around.

Steve: Yeah. It's, it's interesting. Like, I saw this in a Facebook group. They were surveying their their buyers. Like, hey.

You know, like, how were you figuring out your calculations when you were buying from us for the last year?

Michael: Mhmm.

Steve: And they say, well, if we can make a thousand dollars on a flip, we're good because every indicator is that we've got a mass appreciation. And I don't need to base it off of today, Matt. I could base it off tomorrow, Matt. And, like, that works until it doesn't.

Michael: And it works until yeah. And you're you're gonna get bit, man.

Steve: Yeah. And and we know people. Right? We have mutual friends that are dealing with it right now, and I know I've left so much money on the table. Right?

Because I didn't wanna buy deals

Michael: Mhmm.

Steve: That didn't make sense. Yeah. So we've lost all sorts of deals, but I'm sleeping pretty good right now.

Michael: Yeah. You're not stuck with, yeah, the hot potato, man. Yeah. Yeah. A lot there, man.

Steve: And that's, like, the the the thing I took right from 2007. Like, the, you know, the mixed blessing curse, whatever is, like, starting in the worst possible time.

Michael: Mhmm. Yep.

Steve: Alright. Got a lot of scar tissue to to to work through.

Michael: Oh, scars. We got them. Yeah. They don't

Steve: so, Manny wants to know, what are what are you doing personally to mitigate or operate during this recession?

Michael: Paying attention, educating myself. I'm always educating to what's going on and paying attention to what's going on. What are other investors doing? But I'm still out there. Right?

I I think it just goes back always back to the fundamentals and buying right. I I know it keeps saying it, man. Right? Like, so that's why you're sleeping well at night. Right?

So just taking it day by day, looking at the deals that come through, understanding who you are as an investor. Right? So, I don't know the level of the audience or whatever it is, but, like, if you're a landlord, stick to landlording. Understand what your your risk level is and what you're comfortable doing and stick to your numbers. Right?

Yeah. Don't test it out and so I would just say fix your numbers by Well, and

Steve: it also helps that we have a mutual friend in Tina Tambor.

Michael: Yes. Yes. Tina is wonderful. Very thankful. She does, a few times a year.

She graces our stage as Ria Mhmm. And gives a, in-depth, market update, and she is kind enough to even make it adapt to real estate investors.

Steve: Yeah. And she was on she was here a week and a half ago.

Michael: I watched?

Steve: Yeah. You know what she said before the show?

Michael: What'd she say?

Steve: But Josh was talking to her. I was like, hey. You know, like, whatever makes sense, we come in real estate this route. She says, I I don't think Steve remembers who I am.

Michael: Oh, really? Yeah. So she's great.

Steve: She's awesome. And then Ingrid wants to know, does Azria teach creative finance?

Michael: Yes. We do. Yes. We have anything you need as a real estate investor. We some of these classes might go in rotation.

Steve: Mhmm.

Michael: But, you know, we just did a revamp on our website. So a lot of these all these classes are recorded also, so they'll also be, online as well for our members.

Steve: Okay. So she happens to I know, be really adept at Ingrid, at, Creative Finance. Mhmm. Is there, an opportunity for her to be a part of that community, to lead that community?

Michael: Reach out. Starts with relationship, getting to know each other, and see if we're a fit. Same thing with raising money. Do we fit? Do we align?

Can we help can you help the members Yeah. Properly? Right? Let's reach out.

Steve: And, what if someone wants to reach out to you, how would they do that?

Michael: Obviously, asria.org, you could reach us through the front desk, on myself, Instagram at Michael Delpreet, at asria, underscore ria. Yeah. Instagram, Facebook, name it. Yep. I saw a page that he gave us phone number.

I don't think I have the I'm gonna do that.

Steve: And then Justin says, Justin tries to says that cash flow Saturdays are fun.

Michael: Awesome. Thank you, Justin. Yes. Awesome. Thank you.

Steve: Yep. Alright. So we got a couple other questions here, but, let's see what else we wanna talk about.

Michael: Tell me, man.

Steve: What? So we talked about, you know, how you're how you're mitigating, right, how you're operating and staying educated. So, like, what do you make of right now? I think, you know, Opendoor like, Tina kinda said, it's like Opendoor and Zillow had, like, a race. Who could lose more money?

Michael: Got it.

Steve: Right? And Opendoor won.

Michael: Got it. Got it.

Steve: What do you make of them having, like, 8% of the active listings?

Michael: What do I make of that? You know, don't really have a opinion on it. You know? Yeah. I'm, like, in a different world.

Right? Like, so they have all these listings. I look at it as, if things are changing, they overpaid. So they probably bought wrong, so there might be opportunity as a wholesaler investor to maybe get some discounts. Right?

Steve: I think they're gonna be selling to some fund as some sort of large, you know, tape of all the properties. That can be true. So we had a different conversation with another investor yesterday. And here was the question. Right?

Like, are they still gonna be here next year? And the the over under is they will not be here next year. Right? It's the over under. And so the question then is with how bad they performed

Michael: Okay.

Steve: Could they raise enough money to get back? And the answer yesterday in that conversation was, like, if they can raise enough money to get back after how crappily they've done, we need to learn from that guy on how to raise money. Yeah. That is the best guy at raising money.

Michael: So so going back to John Burley

Steve: Mhmm.

Michael: I I don't know the ins and outs of their background, but it's a stock play. Mhmm. But they may have lost in real estate, but they probably made money on the stocks.

Steve: Oh, yeah. No. For sure.

Michael: You but so can they lose money?

Steve: The founders have done very well.

Michael: Yeah. Right?

Steve: I mean, they're sleeping on on on a bed of money. Right? Like, they're doing fun. Maybe gold. Right?

But talking about as far as For sure. Shareholders. Right? I mean, their stocks went from, like, $33 to, like, 4.

Michael: Yeah. It is scary, man. Yeah. Nice stock guy.

Steve: I wish I I wish I shorted that. So, for, Susie on YouTube, as someone outside of Arizona, do you offer virtual meetings or events?

Michael: Yes. We do. We do not another lunch and learn every Wednesday at 12:00, which we just did in your back office. So that's online. Like I said, our training classes that we host, we do offer those online as well.

Just depends per class. And I would I wanna know, you know, if she wants to is she investing in Arizona? Right? So, we're working on getting our monthly meeting hybrid and stuff like that. So

Steve: Yeah. You know, one thing that, Alan brought up, you know, it's just I I noticed it's a source of irritation for him Okay. Is that, Azria is not allowed to win two years in a row. Right? They have to alternate.

So they only win every other year. And

Michael: At the national? Yeah. Okay. Got it.

Steve: At the national, like, best in the country.

Michael: Mhmm.

Steve: You're not allowed to win two years in a row, so he has to win every other year.

Michael: Got it. Yes.

Steve: Why does Azria

Michael: win? Why do we win? Great question. And we won most innovative Ria this year. So, yeah.

So why why do we win? I think it goes back to just serving people and going back to the members. Mhmm. Right? I think we always have same answer, man.

You can't go wrong if you take care of people. Right? So I think with the we're always innovated on marketing ideas. We're always on ahead of the curve when it come this is the market update. That's a big piece of it too.

So as an investor, as agents, you have everywhere to go to get a market update. But as an investor, you can come to our meetings and you could pivot and change your business off of that one slideshow that we give. And so you have in-depth insight to to move your business properly. So I think that the market update is key and the relationships that you build with the people around you that you continue to keep for five, ten, twenty years, and you do deals with your whole career. So I think it's the members, the relationships, and the market update are are key.

Steve: And then, Steve Estrada, I think you paid him on Instagram. It says Michael is a beast. I've seen his deals. His operation is real smooth. So whatever you paid him was worth it.

Michael: Thank you, Steve. Whoever you are, I appreciate it.

Steve: So I know you mentioned in the beginning, like, you know, you you realized that the Verizon nine to five was not for you. Correct. What drives you today?

Michael: What drives me today? I don't wanna be broke. You know what I'm saying? That's simple as that.

Steve: But you could've if if not being broke was the answer, you could've stopped a while ago.

Michael: No. Well okay. Alright. There you go. So I was never big, like, on the whole why thing.

It's of course, it's my family. Right? Like, so it always leads back to freedom, family, all that stuff. Like, you know, my age, I'm 30 you know, you start thinking about retirement. Right?

So, like, I don't wanna be hunting down deals when I'm older. You know what I'm saying? So, I think that's key. I just wanna have a comfortable future with my family, do what I want, when I want, wherever I want kind of thing. So Yeah.

Wanna continue that. Yeah. It just goes back to freedom, man. You know? And I like I think business is like a competition, man.

It's fun.

Steve: It is fun.

Michael: You know?

Steve: What is your biggest struggle right now?

Michael: Biggest struggle right now. Well, I would say, you know, it's it's I want the challenge is, like, you know, taking over the Ria. Like, so I slowed down on my real estate business for a few months. Right? So I'm building back my team back up.

We're building as Ria backup. So I think just the energy and time, getting the right pea people on these new businesses, getting the right people in place to help and support. So I think it's just going through that that phase right now.

Steve: And how, what are you doing to help you with that? Like, is there a who? Is there book? Is there some sort of resource that's helping you kinda navigate this transition and managing multiple projects at the same time?

Michael: People, man. My wife on the team, my partner Scott, Molly, Paul, Marcus, like, every every it's it's I wouldn't say there's a book. I'm always listening to podcasts. Like, I I just go there's, like, this motivation thing. Mhmm.

I don't have any book that I'm reading or anything like that. I just keep that right mindset. I know what needs to be done and what I have to do, so I just kinda flow with it, man. Yeah. I wouldn't say I've got that magic book for you.

Steve: So besides this podcast, like, what is a great podcast?

Michael: A great podcast. Well, we have to ask Ria Show. That's always great. So, outside of this podcast I would listen to, Jay Massey had a good pod Cashflow Diaries was awesome, and he's bringing that back as well. So

Steve: Cool. And then how do you measure success?

Michael: Progress. Is there always progress? Am I always moving forward? Am I achieving what I want or what I, you know, strived out to get? Is that happening?

Right? So, long as I keep seeing like, our goal is a 100 events this year. We did 90 in the first six months. Did we just Really? Yeah.

100%, man. So we're gonna I'm pasted to I didn't I just had messed up in my mind, I guess, but, like, yeah, man. So I I'm checking things off. Like, I'm saying, wow. We did that.

We everything we say we're gonna do, we do. So that that's this. That's incredible. Yep.

Steve: And what is your superpower?

Michael: Superpower. I knew you're gonna ask that. Let's see. So, hey, man. I'm keeping it simple.

I think I'm just who I am. You could trust me, man. I hate I don't like when people say you you trust me. I could do not that. Like, I just show up, do what I say I'm gonna do, and we get business done.

We have a good time, good relationship. And I think people pick up on that, and they could see that. So, I

Steve: mean get things done. You have fun doing it.

Michael: Yeah, man. And just be myself. They and people likable maybe. I don't know what it is, but, it works. So maybe that's my superpower.

Steve: It definitely works. Right?

Michael: I got here.

Steve: What is the greatest lesson you've learned? Greatest lesson.

Michael: Okay. I I got a little story if I got time about that. So, back when I owned the, the hair salon, so didn't know this, gentleman that was cutting hair in her salon was actually Dean Graziosi's hairstylist. Years. So and I didn't know this.

One time my wife was like, yeah. He came in and got you this book. He signed it for you. I was like, do

Steve: you know

Michael: who that is? Like, it was like the biggest educator in the world. Right? So, so I was like, cool. Well, he's going to my hair salon.

And I had my office in the back of the hair salon, like, better call Saul. You know what I'm saying? So so, anyway, so I was like, no. Let me get on the books, and I'm gonna find out when his next appointment is. And I'm gonna wait.

I'm gonna introduce myself. Right? So I didn't know what to say. Or, you know, what do you say? I don't know.

Right? I don't his time is haircut, so I ain't gonna bother him. So I waited till he he left. So he so he came outside, and I'm like, yo, Dean. What's up, man, Mike?

I kinda do what you do. You know what I mean? I wanna be, like, where you're going. It was kind of I don't even know what I and said because I knew he used to sell cars wholesale. Educator.

So I'm wholesaling. I wanna educate people. So I was like, how'd you do it, man? You know? And he's standing there.

I was like, he just I guess, is a style city. He's bought a Range Rover, pearl white, $100 Range Rover. He's standing right there, and I'm like, how'd you do it, man? And I'm in my head where I'm at in my life. I'm like, he's gonna tell me everything right now.

He's got a minor salami.

Steve: Just give me the secret.

Michael: Give me the secret. The scrolls are gonna drop down. I'm gonna know it. He goes, Mike, keep at it, but I gotta go. I was like, you know, so in my world from being the concert business, I was like, we call that Hollywood talk.

Right? Like, yeah. Yeah. Yeah. Good.

Let's do this. You're great. Move on. Right? And nothing ever happens.

So I was like, where I was at the space I was in, I was like, man, forget that guy, dude. Like, what the heck? Keep at it? What the heck's it? So, anyways, fast forward three, four years.

This is a while back. I'm in my office, had a string of luck, closed some deals, made some good checks. I'm sitting in my office just just reminiscing. You're gonna sit there, you're stuck in your office sometimes. I'm like, wow.

That was pretty good. I went through a lot to get that. And I started thinking about, like, the battles, the scars, the good times, the bad times. And I'm I'm just sitting there, and I'm like, wow, man. Went through a lot.

And then Dean popped in my head. Keep at it, Mike. Mhmm. Like, shoot. He's right, man.

Like Yeah. Keep at it. Like, that's all I did. Like, I I don't have all the great answers. Like, I just kept going, kept taking action, licked my wounds, kept going, and, kept at it, man.

So thank you, Dean Graziosi. Greatest advice I forgot.

Steve: You know, we reached out to them from the come on to the show.

Michael: Alright.

Steve: And he said, I won't come on to the show until you have 505 star reviews. I think kinda is your point. Mhmm. Like, until you've shown me that you've done it. Right?

Then at that point like, you're you're you've been at it consistently for some time. Then at that point, I'll come onto the show. I think at this point, we're at, like, 605 star reviews. So whoever told me that I need to go check my Reach out. Text messages.

There you go. Right. So yeah. It it's it's it's funny that that's the greatest lesson, but you've had it. It really is the truth.

Right? Like, whoever is the most consistent over a long period of time is gonna be the one that makes it.

Michael: And and, like, when you're when you're at it like that, opportunity just, I I don't know, in a way falls on your lap. Right? Like, because you're just working. You're more more failures and successes day after day, day after day. One day you're like, oh, shoot.

Mhmm. Wow. How'd that happen? Like, how did I get this call center? Oh, then we all the rentals we bought with the call center, sold a few, bought as Ria.

Like, no money out of pocket. Like, just leveraging. Like Right. You know, just kept at it, man, and just things kept working.

Steve: That's awesome. What is your favorite, best, or most interesting failure?

Michael: Most interesting failure. Man, Steve, you got some, man, it's it's kind of like, most interesting failure. I would probably say not getting, title insurance on a quick claim.

Steve: As a person that owns a title company, I would love to hear more about this.

Michael: Yeah. Yeah. So, still working on it. You know, so basically, I don't it's it's just why do you have to ask that question, man? So this so all the juice comes out on the disruptors.

Yeah. So basically, bought a property from a wholesaler. They had bought it, turned it into a rental. And after they turned it into rental, they refi, did the deburr. Right?

So in my head But

Steve: they did a refi.

Michael: Yeah.

Steve: So at some point so at some point, they got title insurance.

Michael: Correct.

Steve: Okay.

Michael: Yep. Twice. Well, no. No. No.

That's I'm sorry. Purchase, title insurance, renovate it, refi, lender gets title. Mhmm. However but there's two searches there in my head. Yeah.

Person was in a situation where they're like, hey. Need cash. Will you take this property? Give the cash. Right?

It was a deal. Right? Got the cash and then just quick claim, man. Just went through two there is that risk that month and a half or whatever. Anything in the world could happen.

Steve: Yep.

Michael: There was a risk there. But so, anyways, I take it over, keep it, whatever, refinance it again, get my, you know, whole situation.

Steve: Out? Yep.

Michael: There you go. Then another another title process, but I don't get title insurance on that. I didn't even talk about that. Lender did, though. Tenant calls property manager.

Hey. I got a foreclosure notice. Property manager calls me, check my mortgage, autopay is on, everything's good. What's going on? Long story short, property manager looked up, went to a tax lien sale.

I found this out on Thursday night. It happened on a Monday. It's sold. So sold at at the tax lien sale now. Right?

Yeah. So still own it, but there's redemption.

Steve: I was gonna say, there you get a redemption period.

Michael: So got the redemption period. Now it's like, you know, there's a lot more to it, man. You know? So but

Steve: I We can have some time.

Michael: If you wanna share some hour. If you

Steve: wanna share some painful deep, deep, painful lessons.

Michael: So so no. It's to help people. Right? So title insurance, you gotta get that right. So I'm doing my research, talking to the the original title company the gentleman went to through, and they're like or when we did the quick claim.

So I did it I didn't go downtown or anything like that type of thing. So I went through a title company, did the quick claim. Like, oh, guess what we found? We found a a title policy. So right?

So now I'm like, cool. I'm good. Don't know yet, but I still have a now, once again, attorney on retainer now Mhmm. Doing the research, filing a motion to stop anything that from happening so we can do the redemption period or whatever and just kinda work through everything. Now I gotta look into the, title policy and call, and he's like, well, I don't see any signatures on here or the right signatures.

There's a missing blank. So you just gotta verify it's a legit it was done correctly. So it's not I'm not out of it. Right? But so, basically, everything, the title insurance policy would do, I would technically, I may have to pay an attorney to do.

Yep. Okay. So now that's going on. So now what else is going on here? Right?

I got a a mortgage. So I can call maybe the lender. Hey. You guys wanna jump in, use your policy. They're about to take the house.

That's an option. But, you know, when you talk to an attorney, scare the hell out of you. Right? But they're just telling you what they know.

Steve: Yeah.

Michael: Well, looking at your note, you're personally liable. So if the bank doesn't wanna help you, well, guess what? You have no house, and you got a loan to pay back.

Steve: Personally liable.

Michael: Or that's what hey, man. I'm in this now. Yeah. So so I'm I'm basically, he just said, even though it's a DSCR loan, that's why I'm I gotta cross reference all this. Like, I feel like hiring an attorney to check on the attorney.

Right? Like, so,

Steve: That's when you got serious problems.

Michael: Yeah. We don't know. So but no. That's but you don't you know, there's trust there, but, you know, so he's saying Oh, it's

Steve: not a trust issue. I'm just saying, well, you have to hire an attorney to verify the attorney. It's like you got these are deep issues. These are not, like, shallow. Like, oh, this is what you do, and it's done.

Michael: That's what I'm looking for. But This is

Steve: these are valuable life changing lessons.

Michael: Remember two years in the business being told in the middle of over $15,000 in fees being paid, you lost. Yeah. Like, so you think what I'm going through now, like, you don't believe anything this guy is saying or anybody. So, but, you know, anyway, so these are these the angles of it, right, from it getting taken over to paying the bank back maybe, and that could be a worst case scenario. Can I pay what was sold for at the auction and just get it back?

Mhmm. Potentially. Yeah. So there's positives and negatives.

Steve: That's probably the cheapest option, the redemption. Yeah. Probably the cheapest.

Michael: But, you know, attorney goes, well, this is like an octopus. He's like, I see maybe some more that could come back. And I'm like, oh. He's like, he was kinda like, maybe we would do we even pay it back? Like but I I'm not getting I'm hopeful here.

Steve: Like Yeah.

Michael: But anyways so

Steve: Well, we're definitely gonna have to maybe get, you know, some closure on this.

Michael: Yeah. Yeah. For sure.

Steve: You live in a in a couple of months.

Michael: You you let me know, man.

Steve: Paul Disaraga says thank you for the shout out. So Awesome. Alright. Before we wrap up, we got a a few quick announcements. Think about what you wanna leave the listeners with.

Guys, if you got value today, please like, subscribe, share, comment, leave a five star review if you're listening to this on iTunes. We do have our live event again in a few weeks, so check that out. Disruptors.com/salesdisruptors. We got part in the disruption tomorrow at 11:30 my time, 02:30 eastern. And next week, we got my good pal, Eric Brewer, which I think is also really timely because he came up with the Brewer Method, which is all about novations, which is probably really relevant in your business right now.

You don't wanna miss that. What are some last thoughts you wanna leave everybody with?

Michael: You know, let's keep it simple, man. Keep at it. Right? Just,

Steve: you know, check

Michael: us out.

Steve: That was his advice. That's not your advice. Come on.

Michael: Hey. Why can't I share it? It was good advice. It worked for me. It worked for you.

You know? So And me. You. There you go, man. So, stick with it.

Stay in the game. Be smart. Get edgy educated. Build relationships. Come check us out at Esria.

We're here for you. We're here to help you, anywhere no matter where you're at in your career. So, thank you, man. And thank you, Steve, for having me. I really appreciate it.

Steve: Oh, it's absolutely my pleasure. If someone wants to get a hold of you, again, the best way?

Michael: Instagram. Just social media is probably at Michael DelPreach. Check me out.

Steve: There you go. Perfect. Thank you so much.

Michael: Thanks, buddy.

Steve: Thanks for coming on. Thank y'all for watching. See you all tomorrow for part of the disruption.

Steve: Shout out to Steve Trane. Jump on the Steve Trane. We real estate disrupt us.