Doing 7-Figure Deals Off The MLS

Steve Trang: Everybody. Thanks for joining us for today's episode of Real Estate Disruptors. So we've got Landon and Jesse Bokeley with the Bokeley brothers, and they flew in from Las Vegas. Talk about how they're doing 7 figure flips multiple times off the MLS. Now I am on a mission to create 100 millionaires.

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You know, the the old adage, a rising tide lifts all boats. We're all trying to grow here together, and don't forget tomorrow, we do have pardon the disruption. So this is a live show. Please ask your questions for Jesse and Landon to answer. You ready?

Jesse Bokeley: There you go.

Steve: Alright. Very cool. So first question is, what was your life before real estate?

Landon Bokeley: I love that one. Let me get into the personal stuff.

Jesse: Yeah. That's good. Right out of the gate here.

Landon: So before we officially started or decided to get into real estate investing, I was living in San Francisco, and I was working, logistics, basically, like global shipping for a tech company. Mhmm. So not super glamorous. Definitely would consider it like your traditional nine to five. And I quickly realized that was not for me.

Steve: You weren't posting on Instagram about it? No. Nope.

Landon: Not nothing to boast about there.

Steve: Okay. Were you, unfulfilled in that role?

Landon: Definitely. Definitely. It was a it was a great role. I learned at a young age what it was like to be young and have people underneath you

Steve: Mhmm.

Landon: That are especially older Mhmm. And how that dynamic works. So I learned a lot. I'm very grateful for it, but it definitely wasn't a position I was proud of, boasting of, or saw a future in.

Steve: Gotcha. How about you?

Jesse: Yeah. So I went to Arizona State. So I was just a nice young college grad from a great university back in 2000, '13 is when I graduated. Came home back to Vegas pretty quick from graduation and started serving tables at the foundation room at the Mandalay Bay. So went and got Graduated.

Graduated. Degree. I know. Took me five years.

Steve: Degree in?

Jesse: Business communications.

Steve: Okay. And then you went and took that and became a server.

Jesse: When? Took it, became a server.

Steve: Yeah.

Jesse: So I was a server for for about six months, you know, making good money for a 21 year old kid, 22 year old kid out of college. But then I jumped into being a realtor at Berkshire Hathaway. Mhmm. So I went into the sales game. Right?

I went to the real estate game pretty quick. Family friend, that I was hooked up with was a good team leader, led a top 10 team for the past ten years at Berkshire Hathaway. I said, okay. I'll give it a shot. Let's do it.

Yeah. So started doing traditional buyers and sellers.

Steve: That sounds like a Brian Davila story.

Jesse: Yeah. Pretty close. Pretty close.

Steve: Yeah. Okay. So how long do you, stay on the realtor side?

Jesse: So as a realtor, I stayed with Berkshire Hathaway for two years, did some deals, did well, got my game tied in terms of, you know, time management, scheduling, got a little bit more mature with who I was as a person, and I actually had an opportunity to link up with a commercial, broker out in Vegas. Mhmm. Dan Adamson, who is a big mentor for me, even still. And he did retail, shopping center acquisitions, dispositions, and leasing. So I worked with him for two years and kinda learned a little learned a little bit about the leasing game and the commercial game.

So that was cool.

Steve: So I've had other people that were on commercial before. And, this question I would just wanna ask is because I think there's so many similarities between wholesaling and commercial. I think wholesaling is a lot more like commercial real estate than it is like residential real estate.

Jesse: Mhmm.

Steve: What are your thoughts on that?

Jesse: Yeah. You know, the way you market directly to the sellers and wholesale anything super similar to how commercial brokers get their clients. You know, it's it's much more similar in that sense. You know, I was still young and pretty new to the game, so I wasn't in it very long. You I was only in it for two years before Jesse and I actually had the chance to link up and start flipping, in 2016.

But from what I learned, I mean, I did a couple big lease deals just from the little time I was there where I'm still doing them today with some clients, which is Yeah.

Steve: Because, like, what I understand, right, is, like, you start off as, like, here's a list. Go co call this list.

Jesse: Yep.

Steve: Right? Yep. And you're just gonna dial until you get someone that's interested. And once you get someone that's interested and they raise their hand, you go in there and you lock up the agreement, whatever. You don't necessarily cooperate on MLS, like the residential side.

You then start co calling for buyers and try to sell your own deal. So you gotta do your disposition and acquisition in house. Right. Not to say that you don't wanna cooperate with other people, but, like, cooperating with other people is, like, your last resort. It's kinda like today.

I'm gonna try to dispoate myself. If I can't dispoate myself, then I'm gonna call Kegley.

Jesse: Right.

Steve: You're gonna reach

Jesse: out to Tyler.

Steve: See if they can dispoate. Sure. Right? So that was kinda my experience over there. Is that

Jesse: is. Yeah. And, you know, I was calling pretty big retail tenants. I was talking to, you know, the Burger Kings of the world. I was talking to some of these big franchises.

So, yeah, it's it's definitely a little bit more of a held in house competitive nature. Not a lot of collaboration going on for sure, versus what we're doing today, which is obviously a lot more collaborative.

Steve: So Right. So then when did you guys link up?

Landon: That was about halfway through 2016 is when he was still working over there. The office I was working at actually relocated back home to Las Vegas, so I came with it.

Steve: Big coincidence.

Landon: Big coincidence. And then our our dads have always been in real estate. That's kind of our our segue of how it was introduced to us in our lives. And they just floated the idea around, like, why don't you guys team up and do something like this together? And so that idea was a spark and got us joined up.

Basically, we took down a small little office, like, a small little room inside of our dad's office, and that was the the war room. That was the headquarters where it all started.

Steve: Gotcha. So, what would happen if you guys never closed your first deal?

Landon: Oh, that's interesting. I think we would have still gone on and gone to the second and persevered. Because once we decided, hey. We're we're doing this. We are investing.

We are flipping. I don't think there was any stopping us.

Steve: What was it that gave you guys such conviction?

Jesse: I think them. I think our dads and the way that they brought us up. You know, they're just very entrepreneurial. Their father walked out on them when they were 12 years old. They're identical twins.

So they fended for themselves their entire lives.

Steve: Mhmm.

Jesse: And I think they just put that on us where it's like, look. We we're not afraid to, you know, jump in and jump all in. You know? And that's what we've done with everything from the flip side to the brokerage side to now our content creation and, education side of the business. It's like, look.

If we're gonna do it, we're gonna do it, and we're gonna do it all in.

Steve: So I completely missed something prior to this moment. Right? So you guys are actually not brothers.

Landon: You let the secret out.

Jesse: I think we did.

Landon: But Yeah.

Steve: We might have.

Landon: So we're cousins

Steve: Yeah.

Landon: Technically. But if you're gonna create a brand and spread it around the world, how does Bokely Cousins sound? Sounds a little weird. Bokely Brothers sounds a lot better. Get the alliteration going, so that's why we went with it.

Jesse: And it's just natural. I mean, you know, we've been like we said, you know, our dads are identical twins. Yeah. So they're, like, as deep of brothers as you could possibly be, and, you know, we treat each other the same way. So it's just like, yeah.

We're brothers. We're you know?

Steve: Yeah. That's cool. I just didn't realize until just now. Yeah. So after closing your first deal, how did you guys continue?

Well, actually, before that, tell me about your first deal.

Landon: Okay. So the first deal was pretty easy. And not to fast forward to the closing, but we had already bought two more deals before we closed that first deal. So we were, like I said, we were making this happen regardless.

Jesse: Mhmm.

Landon: That first one didn't close or not. We were already on our way to investing in a big way. So the first deal was pretty simple. We got a referral of a contractor who, some mentors of ours had used in the past. And we called him, said we wanted to use him.

He said, great. I actually have some people working for me that could help you guys find a deal as well. So he helped us find the first deal, and he was a contractor on the first deal. It's got handheld.

Steve: Yeah.

Landon: Nothing wrong with that.

Steve: Nothing wrong with that at all.

Landon: And so that first one was an easy, like, maybe 2004, 2005 build, great area, South Summerlin, you know, the area of Las Vegas, pure cosmetic.

Steve: Yeah. Yeah.

Jesse: Could've been easier. Easy cookie cutter rehab.

Steve: Yep. And what did you guys, make on that first one?

Landon: I think we cleared somewhere, like, 25, 35.

Steve: Mhmm.

Landon: A good base hit.

Steve: Great proof of concept. Yeah. Alright. So then after closing your first deal, how did you guys continue the momentum?

Jesse: So, you know, we we went into this with no experience. So we didn't know how to find deals. I knew how to use the MLS. That's all I knew. So, you know, knowing that the MLS we could buy deals off of, I taught Jesse how to use it.

So we just the first deal was kinda handed to us like he said. The next couple deals, we found ourselves.

Landon: Right.

Jesse: So now we started getting to the mindset of, like, okay. We know the numbers based off that first one. Let's just go find, you know, properties that replicate those exact numbers. And that's what we did. So we started searching the MLS and offering ourselves on the MLS, and right away, we found a couple more.

Yeah. Use the same contractor. So, you know, we had a good contractor in place, which I which I think is a tough starting spot for a lot of people is to find that right GC for flipping homes.

Steve: You know?

Jesse: There's an you could get robbed very easily from someone who does big high end retail jobs because they don't make enough on the flip properties.

Landon: Mhmm.

Jesse: So we just have the right people in place and tell Jesse how to use the MLS, and we're we're offering from there on out. Because then it was a

Landon: two man show probably for too long. Yeah. But offering on homes, negotiating purchases, actually closing them, managing construction, design, selling Paperwork. Escrow,

Jesse: everything. Yeah.

Landon: They're probably, like, a 150 homes.

Steve: Wow. That's crazy.

Landon: Yeah.

Steve: So you're sourcing off the MLS, which for a long time, I heard a lot of people say you couldn't do so. Like, there was this time where it was easy to buy off the MLS, and there was this time where it became more challenging.

Landon: Yeah.

Steve: But even this time where everyone else is still saying it was challenging, you guys are still buying off the MLS.

Jesse: And I love when they say that. Time.

Steve: Yeah. So how how is that possible?

Landon: I love when people say that because what that means is, okay. Great. Less competition. Alright. I if you have that stigma and you believe it, then you're probably not gonna go play in my playground.

So Alright. Awesome. More room for me. Yeah. I love when they say that.

Steve: So you're just like, zip it. Yeah. You're right. Exactly. Yeah.

MLS sucks.

Jesse: Don't don't buy deals there. Yeah.

Steve: But you guys are obviously doing something different. So what were you guys doing differently?

Landon: So I think one of the things that's made us successful in general, whether the market's really easy to get deals on the MLS or when it becomes difficult, which we've had success, like you said, throughout different market conditions, is just how dedicated we are to it and how persistent we are to it. That means playing the numbers game Mhmm. Which no one wants to do. Right. Everyone says they are, but their numbers are this big when they really need to be 10 times that.

We also do something I think that's really unique when we talk to other people who do do MLS acquisitions is we don't disqualify any listing from being a potential purchase. And I think a lot of people subconsciously do that without even knowing as they click through, as they search the map. They just come across something and internally, inside their subconscious, they say, oh, I can never buy that. And it moves them along.

Jesse: Take my price on it. Right. Like, they're not gonna take a 150 k under list price for this house. It looks fine.

Landon: We don't do that Yeah.

Steve: No matter what. Everyone gets an offer.

Landon: Everyone gets an offer. Alright. Everyone should have an offer from us.

Steve: Well, that makes it simple enough. Yeah. Okay. So then what were some doubts you guys faced along the way? I know you said, like, mindset, like, you guys were gonna do it no matter what.

Mhmm. What were some doubts you guys faced along the way?

Landon: I'd say one that was early on, being being kind of, I would say, ushered in with some guidance, some mentors being our fathers, and the people that they knew in this business was that are we gonna be able to graduate from under their wing? And

Jesse: We got a lot of scrutiny for being under their wing too. You do. So when we get out of that scrutiny.

Steve: What kind of scrutiny?

Jesse: You know, just It's handed to you. Most success stories you wanna hear is from people that came from very difficult scenarios. Right?

Landon: Rags to riches.

Jesse: Rags to riches is the best success story because it's the most relatable, and I can appreciate those type of success stories for sure. You know, that's what our dads were. We're rags to riches. But for us, we weren't. So we get we've gone to scrutiny our entire lives that, like, you you know, spoiled rich kids, this and, you know

Steve: Silver spoon.

Jesse: They get everything handed to them. Silver spoon handed to them and all that, which that's the battle we've had to face

Steve: Yeah.

Jesse: Which is a different type of battle, but it's what it's been. So it's, can we get out from under that silver spoon scrutiny, and can we feel individually, no matter what other people think, that, hey. We can do this on our own and we can succeed on our own. Yeah. And we stand on on our own two feet.

And I think we proved that we can.

Steve: Yeah. When did, your business begin to blossom?

Jesse: 2019.

Landon: Yeah. So which is about like, we started in 2016. We really that was towards the end of the year, so we really started in 2017. And that was two years of us doing every single thing a to z. And once we realized, okay, we have to have to hire somebody if we wanna grow.

Yeah. And we did it. The moment we did that is when it started really growing and really blossoming. Yeah. Being able to do more properties, hold more properties, take on more risk, you name it.

As soon as we started delegating roles, we started to grow.

Steve: Who was it that beat it into your heads?

Landon: That we needed to do that?

Steve: Yeah.

Landon: Honestly, I think it just came from us. I think it just came from pure frustration.

Jesse: Yeah. Ryan Panayga gave us a lot of, you know, grief for it as well. So I give a lot of credit to him in 2019. You know? And that's kinda where I say things changed was, you know, Jesse and I, as he was explaining, we did everything ourselves.

So that means we were in our cave of an office for three years before that thinking, like, how do we do this? How do we do this? How do we do this? Like, how are we gonna grow if we're managing construction all day every day and trying to buy properties? And that hindered the growth of our business.

Steve: Yeah.

Jesse: And then when we started, you know, seeing Ryan's success and talking to him more about what he was doing, it was more collaboration, more networking, you know, more delegating and hiring and bringing people on. And the second we started taking that, you know, advice into into play and hiring our project managers, I mean, we three, four, five x ed our business in two years.

Landon: Even acquisitions.

Steve: Getting a

Landon: team, somebody else to do that so we didn't have to spend so much time physically on the MLS.

Steve: Right. So, I guess, what were some of the struggles? Like, you it's it's starting to go good. So we're talking about, you you know, delegation, being overwhelmed. What are some other early struggles you had in in growing your business?

Landon: So I think one thing, it didn't come to light until more recently. And I don't wanna say this in a negative sense because it was fantastic the way we were able to get started, the gift we were given, the opportunity we were given from our dads to be able to do this and then take the ball and run with it. But they're sharks. Don't get me wrong. So when we started out, they took a good portion of what we made.

Steve: Yeah.

Landon: Fair? They got us started. They gave us this runway. Mhmm. But I think that not realizing how we could grow if we diversified our funding sources, if we were able to take more home, reinvest it into the business.

We didn't do that for a very long time, and I think that hindered our growth for longer than it needed to.

Steve: Yeah. So reinvesting into your own business. So, we talked about, you know, 25 k in your first one. It was it was going what are some other, like, big victories you guys had in your career?

Landon: Oh, I love talking about these. These are good.

Jesse: Yeah. You know, we did a lot of so, basically, 2016 to 2019, our average profit per deal was anywhere between, like, 16 and $20,000. So we were working very hard to make very little and and in our sense, you know, because we were giving a portion of that up as well. So I think the big victory was when we started flipping and jumping into luxury, and we threw in a couple luxury homes in 2019 and took a little bit of a higher risk, with confidence and started hitting those 6 figure plus profits pretty quickly. I'd say one of our biggest victories,

Landon: the wholesale. Just tell them.

Jesse: There's two of them.

Landon: Yeah. Well, there's two of them. It's great.

Jesse: So we wholesale the deal off the MLS. That's something that we do a lot is wholesale off the MLS. And we did a wholesale deal where we locked it up for 1,590,000.00 and wholesale over 2 0.1. So we made, like, a $345,000 wholesale fee off the MLS in ten days Yeah. Which was awesome.

Steve: Right.

Jesse: So that's a huge win. I think our second biggest win, was our $600,000 profit on a on a luxury flip earlier this year, which was great.

Steve: So 345 k assignment fee. Mhmm. But you can't do deals off the MLS. Right? There you go.

So talk to me about this specific listing. What what were some things that you saw on that listing, or

Jesse: how did you

Steve: know it was gonna be a deal?

Landon: Sure. Sure. So

Jesse: Yeah. I love the deal. It's a

Landon: it's an awesome deal. And we vetted it out just like we would any other flip. We actually had every intention of buying it as a flip. Mhmm. So it was a good deal.

Then an a class neighborhood in Las Vegas, guard gated. I don't think it has a, golf course. Guard gated community in Summerlin, totally right where you wanna be. Newer houses too, not too too dated, so still desirable. Just on the inside, needed total cosmetic uplift, but sat in also a great place in the neighborhood too.

So all of the non numerical characteristics of this house screamed yes.

Steve: Yeah. So it had all the right intangibles.

Landon: Yeah. Right. And then we were able to negotiate a little off the list price. It wasn't, like, a terrible, terrible discount.

Jesse: I think we thought this house was gonna be worth 2.5 to, like, 2.7. And we bought it I think it was listed at probably $1.09, and we bought it for $1.06. Let's just say.

Landon: Mhmm. Yeah. Something something

Jesse: close that. Easy.

Landon: And given those numbers, we would have had a decent flip. Couple 100,000 in rehab, probably take home couple 100,000 as well. But while, like, the the day after we locked this up and we are in escrow now, another sale closed at $2.09 or 3,000,000. That's almost directly comparable. Yeah.

And so that immediately gave us 500,000 on our ARV

Steve: Yeah.

Landon: Increased. So all of a sudden, it went from a good deal to a how the hell do we get our hands on this type of deal.

Jesse: So it's kind of a decision that we had to make, which we make with all of our wholesale deals is, do we take it and make 800,000 on this flip, or do we sell it to this buyer and make a quick 345,000? We're trying to make a little bit more. I think we were trying to make, like, 400, and we negotiated it down. So Yeah. There's, like, a 50% deal.

Like, we could flip it and make 800, or we could sell it and make 50% of that, but we do it in ten days, get rid of it, and spend the money on a new home. Yeah. So we decided to wholesale it to one of our solid buyers on our buyers list that buys luxury properties Mhmm. And they flip luxury properties, and they paid us happily a $347,000 wholesale fee.

Steve: Yeah. So was this on the market for, like, a number of days? Was it hot? Or was it, like, stale?

Landon: I don't think it was super stale, but I don't think it was also, like, brand new day of listing that we got it.

Steve: Oh, yeah.

Landon: It was around for a couple days. Luxury does sit around for a couple days too. It's one of the reasons why we really love it.

Steve: Right.

Landon: It's not even yes. Couple months regardless. But Right. Usually, when you go after, let's say, in this area, Vegas area, comparable $2.03, $4,500,000 house, every investor wants to get their hands on that house. Mhmm.

Especially when it's close to price right and it's outdated. Everyone sees it. Everyone wants it. But a house like that, even an investor, a lot of them don't have the funding sources for one point six, one point seven million.

Steve: Mhmm.

Landon: They don't have the experience, the wherewithal, the knowledge to rehab with a budget of $2,300,000. So we don't have a lot of competition in that as well. So even though it's that, we were probably one of the first people that talked to him.

Jesse: You're not. Yeah. And that's what I think a big stigma is about the MLS is people think, well, every deal has to be negotiated so deep.

Steve: Mhmm.

Jesse: And the other deal we talked about, the actual flip that we did flip and make $606,100,000 on, That home was listed at 1,400,000.0.

Steve: Oh, we'll get to that one in a sec. Okay. Yeah. So so you got this one. It was a good deal.

It turned into a great deal. Reached out to one of your buyers

Jesse: Yep.

Steve: And they saw it, and they're like, yeah. I'm in. They didn't care about what you made.

Landon: No. Because they could truly see the actual value there. Mhmm. And there wasn't any shadiness about how we transfer that over. We we know, like, and trust them.

They know, like, and trust us for years and years and years.

Jesse: Do you know

Steve: how much you ended making on that one?

Landon: I think, actually, they moved into it.

Jesse: I think they actually lived in it and didn't sell it all.

Landon: They made it so cool. Yeah. So I can't I don't blame them. Product's insane. But Yeah.

Steve: Yeah. I

Jesse: I'd say it's probably worth still 3 because it probably went up from that 3,000,000 ARV. Yeah. It was a little while ago. And then now it's probably come back down to, like, $3.02 or something. So still a great deal.

Steve: What, what did what was that conversation like with the realtor, right, going from 1.9 to 1.6? Was that difficult conversation? Is that a normal conversation? Very normal,

Landon: as most of them are. Mhmm. It's like I said, every home should get an offer for from us, and it it it's not it's a big difference. Yes. It's a couple 100,000.

But when you're in a higher price point, that couple 100,000 is real common. A swing in either direction of that much money isn't totally foreign to the sellers, to the listing agents. So it wasn't something out of the ordinary, but our acquisition team, you know, our main guy locked that up.

Jesse: I I think it was a conversation back and forth for a month or two, though. I I wanna say that they came back to the party one or two times before they actually accepted that deal. Yeah. Just thinking back and trying to remember it. It wasn't just an initial acceptance.

Steve: Yeah. So then you guys bought another one Yep. You guys did even better on. Yep. Talk to me about that deal.

Jesse: So that deal, we actually flipped. And like I was saying, a few minutes ago, you know, the stigma of the MLS is you have to always offer so far below list to even get these deals accepted when, you know, that's simply not true. You have to be able to identify opportunities. And this is a property in a country club, Anthem Country Club in Henderson, near Vegas. Beautiful property, and it was listed at 1,400,000.0.

And we had a comp that was listed at that just sold completely original, unrenovated, $2.03 doors down at $1.08 5. So we figured we could get probably $2.01 $2.02 for it.

Steve: Mhmm.

Jesse: So we paid $1.04 $2.05 for it. We paid 25,000 over list for it. We ended up putting about 400,000 into the rehab on it.

Landon: Got away from us a little bit.

Jesse: Yeah. You know, we the first really big one. We were gonna put, like, LVT floors in it. And then once we opened, like, it was so closed off, like, so many walls. And we got in there with our GC, and he's like, guys, you won't believe this.

We could take every wall in here out. It's there's no load bearing walls in this entire room. Mhmm. So this small, like

Steve: They had a funky floor plan.

Jesse: Maze Yeah. Floor plan. Totally opened up to, like, 3,000 square feet of wide open space.

Steve: Yeah.

Jesse: So we put a 22 foot slider in. Like, when we saw that, we're like, okay. Tile the floors. Mhmm. Do this place up.

We're gonna spend an extra $100 on this place and ended up selling it for $2.05 5 within one day on market.

Steve: So you guys bought it for 25 over? Yep. Multiple offer situation, I imagine.

Landon: Yep.

Steve: In those scenarios, what were you having to do then to win those offers, those negotiations?

Landon: It was most of our offers or all of our offers are no inspection contingencies. We do our own inspection. So there's like, the slight difference between that is we don't place an inspection contingency, meaning we're not gonna ask for any repairs. We're not gonna ask the sellers to do anything. We just need to go in there with our general contractors, which we can do in one day Yep.

And get a bid, talk about what the design, what we're gonna do to the house. But But the offer is super clean. It was probably a ten day, fourteen day close, I would say, max with a five to seven day due diligence period.

Steve: Mhmm.

Landon: And one property visit, maybe two. Yep. So very simple, very clean. Big EMD. Yeah.

We know we want it too. We'll Yeah.

Jesse: Throw a

Landon: little more EMD their way.

Steve: What's the most what's the most earnest money you ever put put in?

Landon: Probably $50.75. Somewhere around that.

Jesse: Yeah.

Landon: Yeah.

Steve: Yep. So then on the other side, in selling it, multiple offers as well?

Landon: I think it was one day, so he guy was super strong. Do we bid two people up?

Jesse: I think we had one offer at $2.05. One buyer came in at $2.05. They kinda messed around a little bit. Didn't deposit EMD fell apart, and then someone else came in right behind them at $2.05 5. So there was two two buyers that we talked to.

Second buyer who paid $2.05 5 didn't know that the first one was falling apart yet and really wanted it. So

Steve: was this the biggest deal you ever done?

Landon: At the time, it was.

Steve: Okay. And now?

Landon: It's not even close.

Steve: So what's the biggest deal you guys have done?

Landon: We're currently in it. Alright. We're we're three quarters, three fifths of the way through it right now. We it's in Anthem Country Club, oddly enough. Kind of right down the street from this house.

Mhmm.

Steve: It's in

Landon: a double gate. It's a little more exclusive. Pillar view.

Steve: Double gate. I know. What's what's what's the story of a double gate?

Jesse: Inside of a gate.

Landon: It's a facade.

Steve: Like, really just really loudest here.

Jesse: Oh, yeah. There's probably 15 houses in this little, like, second gated cul de sac.

Landon: So it's 7,000 square feet, two story. We bought it for all in, I think, 2.8.

Steve: Mhmm.

Landon: So it was It was

Jesse: a short sale.

Landon: The it was a short sale, but the purchase price was hundreds of thousands over our previous largest sale

Steve: Mhmm.

Landon: Sale price. So we're, you know, a bigger class category here. Yeah. So 2.8 purchase, I think the original plan with all in renovations was 7 ish. It's close to 1,000,000 now.

Yeah.

Jesse: Again A little over.

Landon: This is our first true design build.

Jesse: Yeah.

Landon: So there are things that you just can't figure out in a fourteen day due diligence period. You have to just put a number and say, we'll try to hit that number. Yeah. And we did that with a a good number of things. No other way to get around it.

So we're approaching 1,000,000, for all of our rehab expenses. And when we finish it and go to list it, we're gonna shoot for $5.05. Yeah. So it should be the first house, if we get it, that we clear a million net profit on.

Steve: Got it. Any nervousness right now with everything that's going on?

Jesse: I mean, of course. Be honest. I know. Yes. Of course.

But on this bracket, we've actually seen this bracket, that price point 5,000,000 plus hold up a little bit better in Vegas than even the, you know, 1,000,000 to 2 and a half million rate.

Landon: Totally different buyer. Yeah. Absolutely.

Jesse: I'm actually the least nervous about this house even outside of, like, some of the other, like, 1 point fivers we have going on right now where it's like, man, these buyers are still trying to beat us up. But this buyer is probably gonna be California, second home. They walk in. They have a ton of money, and they say, I love it. I'll buy it.

Whatever it takes.

Landon: What's interesting about that price point too is I would just say, like, what's the best time of year for real estate? Most agents or investors would give me the spring summer.

Steve: Mhmm.

Landon: Everyone's in a frenzy and want to move. Actually, at this price point, there are more trades, more transactions Mhmm. In the last quarter of every year for tax purposes. So being that we're almost done with it

Jesse: We know people wanna put money somewhere right now.

Landon: Yeah. About to list it. Hopefully, November, early December. I know it's a small time frame before officially calendar year ends, but we may be able to pick up somebody who's trying to make that move.

Steve: That's awesome.

Jesse: And I guess a little bit of, you know, up to date data. Jess, I don't think Jesse's caught up on this yet because it happened just yesterday, and he was out of town. A sale. Property two doors down, 10,000 square foot or a little bit larger, just listed at 9.95. Perfect.

So that would put us price per square foot wise puts it at 6 and a half. Mhmm. So so to expect 5 and a half right, pretty pretty good deal there.

Steve: Yeah. Awesome. I didn't ask you this question earlier. How did you guys feel when you finally realized that real estate would be your career?

Landon: I felt kind of a relief, I'll say, because finishing college, everyone's in that mind frame, the age where your parents are saying, what are you doing with your life? Mhmm. You know, what are you doing? Every weekend, if you're not searching for a job or you're not active, it's figure it out. And so I bounced around, did a few jobs, landed in tech, and wasn't really happy.

Knew that I was okay there, but not fulfilled there, not where I wanted to be, something I was excited about. And so as soon as I realized getting up, going to work every day is fun. Doing this gives me a life that I can appreciate and I can enjoy and not really, like, be a slave to work. Yeah. That was just a revelation.

I was like, this is for me. This is for

Jesse: me. Yeah. I think it's also cool to know, you know, the skills we've learned and gained over the last six years now, six and a half years. You know, coming down to the monetary side of it, I know that whatever I do, I know I could make at least a couple $100,000 a year on the low end Mhmm. Trading real estate, helping buyers and sellers, whatever it is.

My knowledge base would make me comfortable on a yearly basis forever.

Steve: And I

Jesse: think that's so cool. Like, maybe I'm not making millions during hard times, but I know I'm gonna still do well, be able to support my family and, you know, succeed year over year forever. And I think real estate is one of the only ways businesses you can do that in. Yeah. If you wanna educate people on that, it's pretty cool too.

Steve: You'll always be valuable. Yeah. Yeah. That's the the peace of mind. You know?

Definitely. So, we're talking about buying off the MLS. Yeah. So someone here I saw asked a question here, Alex Perkins. So in talking to realtors, what is that conversation like?

Because you you guys are making offers on everything. There's no filter. Yeah. So what is that conversation like when there's no indication? Right?

Like, it doesn't say handyman special. It doesn't say Sure. Might not. Yeah. Absolutely not.

Doesn't say motivated home.

Jesse: The ones we don't go after as much. You know? The ones with the caved in roofs and the broken windows and the TLCs and handyman's desk

Landon: is just lower.

Jesse: Everyone sees those. Yeah. So ours our process is pretty special.

Steve: So yeah. So just a regular property just in a in a good neighborhood, good school, and everything else. Yeah. Right? Potentially more desirable property.

What is that conversation like?

Landon: So it's always the same.

Jesse: Mhmm.

Landon: It's very uniform, which you need to implement if you're gonna do this on a bigger scale so that you're not giving one property or one offer preferential treatment over a better chance than the other. But always professional. Lead with professionalism. Even if it's not something you think that they're gonna wanna hear because it's maybe lower than what they're looking for, that's okay. This is what we do.

This is who we are. This is our offer. This is what works for us. Here is a formal offer, not texting the agent, will you guys take $3.50? Like, we don't do that.

Formal offer, fully written, fully executed with proof of funds, and an email explanation. Now, generally, this is a numbers game. We know we're gonna get 97 nos, two maybes, and one yes. Mhmm. For all of those nos, those are not swept off the table.

Those are not gone. We get a lot of our deals from those knows, and it's because we started with professionalism so that when we revisit them, if they sit on the market another few weeks, our acquisitions team's calling, hey. What's going on with that? Anything changed? We're still here.

Few more weeks. Hey. I saw you went in and out of contract. What happened there? Mhmm.

We're still here. Again, professional, very diligent, following up, and it's those weeks and months after initial rejection where we don't take it to heart. We don't walk away. We just keep it in our periphery to revisit it, and I think that's where we end up getting most of our deals done and most of our success comes from.

Steve: Yeah. So it doesn't really sound like it's a script per se. Is it just a process?

Jesse: It's just a process, you know, and the script comes down to just explaining who we are and that, hey. We're investors. These are the numbers that work for us. Mhmm. And that's the bottom line is we're a business.

We're a business for profit, and here's the numbers that work for us. If they don't work for your clients today, completely understand, but the offer is still on the table. Yeah.

Landon: One thing we don't do is hide the game we're playing. Right. Listing agents really appreciate that, and that's one thing that our acquisition, manager is really good at is creating those relationships, being open and honest about what we're doing. They appreciate that even if they're not willing or can't get their sellers on board, at least I'm dealing with somebody who's real with me. Next time when I do have one, maybe I'll deal with you because you were good with me.

You were real with me.

Steve: Yep. And then are you guys maintaining relations with these people because with these realtors because, what we found in the past is that maybe this property doesn't work, but in two weeks, they're like, hey. I got this other property.

Jesse: Yep. Absolutely. That's a line in our email that we send out is, hey. If this property doesn't work, completely understand. Keep us in mind for all future properties.

But our as many deals as we've done now, our agent base is huge and our relationship base is huge. We are getting a ton of deals on an annual basis from from agents that know we perform. And I think that's another big aspect to it is you gotta perform. You know, you can't go in, negotiate. These people are fighting to get you that deal accepted from their sellers.

Mhmm.

Landon: And then

Jesse: you come back and ask for 10 k off, you know, or then

Landon: you come back renegotiation. Right.

Jesse: Ask for an extension. So the process that we have also once we get a deal accepted with running our numbers and getting contractors in there, it's all a very formal process. And I think as we do deals with people, they only wanna work with us again.

Steve: So what is that process? So, we're in a contract. I accept your offer. I emailed back to you. Alright, Landon.

We're in contract.

Landon: Great. Okay. So you being our acquisition manager, you just got this back. Immediately goes off to the next team member, who is our admin, general assistant, office controller. She gets that.

Escrow gets that. Title gets that. And we know immediately that, okay, time to bid the property. So project manager's notified. We have this property under contract.

She already sets up EMD, so that happens without any without fail, perfectly on time. He gets notified to call a contractor and meet out there within twenty four hours. So we've only been in contract for twenty four hours, and now we're at the property actually bidding it. Contractors' expectations are shared that we need this bid back pretty quickly. So another twenty four to forty eight hours, we have full bid in hand, full renovation, design, concept, everything we need to then plug in all of our numbers, rehab, figure out the purchase price works, run it through our calculator.

This is only three days into a contract accepted. We always ask for at least five to seven days.

Steve: Yeah.

Landon: We have a few days to sit on this thing and kinda figure it out, figure Mhmm. Maybe we use this lender over that one. There's no pressure of twelfth hour. Your diligence is up today, 5PM. Do we buy this or not?

Jesse: And we're not canceling a twelfth hour. If we're gonna call them and renegotiate for any reason and, typically, we only have to if it's something that wasn't disclosed or they didn't tell us about, like, the AC units were stolen or don't work or only needs a plaster or something like that where it's like, hey. You know, we have everything besides the pull plaster in there. That's gonna be $10. We're gonna need $10 off, but we're doing that on day three of our due diligence, not well, you know, $11.59 PM on day seven of due diligence.

Steve: Yeah.

Jesse: So it's just doing it correctly is is

Landon: so important. And so now we're making a decision. We have a few days to do that. We can make a comfortable, smart decision. And once we do, now we have a leg up on this project as well because we already have the contractor.

We already have the bid. They already know what's to be done, all the materials that are gonna be used. And so immediately, when we close on this thing, dumpsters drop, demo starts, we're off to the races.

Steve: Yeah. So the escrow period is just part of just the prep period.

Landon: Pretty hot. That's it.

Steve: Yeah. Yeah. I like that you said that the TC is always thinking of the earnest money deposit no matter what. And I think that's one of the big things that a lot of investors miss. Right?

Like, you're just setting a bad taste. Like, when they have when the agent has when the realtor has to chase you for earnest money I know. You're already off to a bad start.

Landon: Absolutely. Yeah.

Steve: Yeah. And then you're talking about that's how you coordinate on the actual listings. What do you guys do right now to build a realtor community that enjoys working with you, that reaches out to you?

Landon: So what we've found really good success in, two things, would be in in person, like, events. So we've teamed up with some realtors that, are, I guess, friends of ours, peers of ours Yeah. Big in the industry that are also big on growing their own social media presence as well. We'll hold events, invite a bunch of realtors to that event, cater something. We'll sit there and talk in front of a hundred, two hundred people and tell them about who we are, our business, and the importance of working with investors on top of being an agent.

Jesse: Yeah. Because every every agent should think about how to work with investors. Yeah. You know, if you're a real estate agent and you don't have investors like us on your side to some extent, you're losing a huge amount of income potential. So hosting events is huge.

Social media, obviously, we're pretty big on. We're always advertising our ability to work with agents on social media. And then we also have our brokerage, in Vegas, the Bokeh Group Real Estate, where we have 40 to 45 agents at any given time where we're educating them and letting them know, hey. We're clients of yours too.

Steve: So this is gonna be totally off track. K. But I'm sure Ryan's in your ear. How come you guys aren't real yet?

Landon: Oh, he's asked us that. Definitely. Alright?

Jesse: Told us so many times. I don't think we have an answer other than, you know, focusing on one thing at a time, and that's, the investment side and the education side right now in the brokerage. You know, we have a team in place kinda running itself, and the fee structures and everything. I don't know. I don't know why we haven't done it.

Steve: Alright. So after We're just on our own game. After the show, we're definitely gonna do a hard close.

Jesse: Oh, there

Landon: we go. I knew it was going.

Jesse: Let's do it.

Steve: So as far as, as one other note I saw here, accountability driven boot camp formula. What is that?

Landon: Yes. Okay. So that's the latest, endeavor of ours. And, basically, in a nutshell, what it is is we've packaged and compartmentalized all of the flipping knowledge, the how to grow a flip team, how to flip successfully, how to do all this from a small scale to a large scale into a ninety day, what we're calling a boot camp Mhmm. Essentially workshop where people come in, we have weekly accountability calls, we're covering our chosen curriculum to teach them important points of the business, things to do, things to avoid, and we walk them through how to submit offers, find lenders, work with lenders, design houses, sell houses, everything you need to do in a flip business in ninety days.

Jesse: And it's MLS based. Know, that's our specialty. You know, we're buying fifty, seventy five properties a year off the MLS. That's what we're

Landon: gonna teach

Jesse: you how to do. Yeah. Today on our call, you know, which you're, you know, hospitable to us, letting us use your room, we, linked everyone on our call up with two hard money lenders within

Steve: the program.

Jesse: So they're leaving that call with a potential of another couple million dollars plus in funds Mhmm. Yeah. Which I think is so cool.

Landon: That's one thing we being a part of mentorship groups and accountability groups and coaching, What we've found and experienced the best success with is when people are really transparent with you, they're very giving versus come on a call and let's just talk.

Steve: Mhmm.

Landon: We want people to leave our boot camp, leave the ninety days, and graduate with a way and a source to hire people, the right people, and a process to do it, funding for their flips with people that we've worked with so they know they're real. They actually get connected, and they get potentially millions of dollars in funding to go out and do deals. Processes to find those deals, ways, and to stay organized and to keep track of everything. They leave with assets.

Steve: Yeah.

Landon: And that's what we wanted people to leave with. I felt like I was fast tracked. I learned so much in ninety days, and I left with a lot in ninety days.

Steve: Yeah. That's a great point. So, we're gonna jump to a quick commercial break, and then we're gonna go to the audience's questions. So don't don't leave. We're gonna be going to your questions right now.

Let's do it. Hey. Steve Trang here. A lot of you have been asking me for sales management training. I didn't teaching it, but I found the perfect guy to teach it for us.

So, Wren, tell us about it.

Speaker 3: Steve, we're gonna be introducing some really intense fundamentals and philosophy behind the management of sales teams. Have a ton of experience building really high performance sales teams and really taking a little bit of this and a little bit of that management practices and theories from all over the place and brought them together to create a unique whole person perspective that drives low performers to high performers and elite caliber salespeople into sales champions. And couldn't be more excited to partner with you on it and the sales disruptors brand.

Steve: For sure. So go to disruptors.com/success, and we'll see you at the next event. Alright. So going into the audience's questions, I see, Kiali. This is from, Hawaii.

So hopefully, I'll talk about first deal how they find it, how'd you lock it up, did you say to get on the contract? So if I recall correctly, this is predominantly, like, the contractor passed it along. You guys still had to go talk to the homeowner.

Landon: This is our very first deal? Yeah. Yeah. So he identified it, using obviously, using the MLS, showed it to us, said, hey. What do you guys think?

Like, this could be your first one. And then worked with us to figure out where do we offer. Let's send this here. It's listed here. Let's send an offer here.

So it wasn't like he went out and did it for us and then say, okay, guys. Just show up here. Like, here's a deal. We were very involved Yeah. In all of it.

Yeah.

Steve: And then, Jake Virga on Instagram is asking your thoughts and stuff too. Now your guys' model is taking the properties down

Landon: Right.

Jesse: Right.

Steve: To flip it. Mhmm. So do you guys do any subjective to or creative?

Landon: We really haven't in the past.

Jesse: No. It's something we need to start looking at more. I have a bunch of companies reaching out to our brokerage to list novation deals and, you know, do those type of things. We just haven't had to do a a lot of that type of business in recent years. You know?

I even remember us talking about joining your, Yeah. You know, your school Mhmm. A couple years ago, and you're like, wait. You guys do so much business off the MLS. Why would you wanna go over here?

And it's, like, start having spending. Had to do that

Steve: Right.

Jesse: Because of the MLS. So no. But we need to learn more about it because I think it is the way of the future. I think that there's a lot of sub two and creative finance to be done right now, and there's a lot of money to be made in it. So

Steve: There is. But does it is that part of flipping, though?

Landon: Honestly, I I don't know because now when I first started, maybe 2016, 2017, even 2018, you asked, are you guys gonna get into that? Absolutely. I we're gonna need to. I felt the overwhelming need to get into another acquisition source. But as we've gone through and I know we haven't been in this decades, so we haven't seen full market cycles.

But it's been easy for us to get deals off the MLS. It's also been very, very hard for us in the past recent years when inventory was just so low Mhmm. And everyone was overpaying. That seems to me like one of the hardest times to find deals on the MLS. Knowing we've navigated that and been successful through all of that makes me feel stronger and more confident with the MLS as our primary acquisition source.

Now will we do something in the future? Definitely. Yeah. But I don't mind leaning on it so heavily now that we've navigated tougher waters.

Jesse: And there's a ton of opportunities on it now.

Steve: There's a ton of opportunity on it. But I think, you know, looking at your guys' business model, the only benefit here, from what I can see, is you can just reduce your hard money costs, right, for six months.

Jesse: Yeah.

Steve: True. Right? I mean, how long are you guys taking to go in and out on a flip right now?

Landon: Luxury takes a little longer.

Steve: Right.

Jesse: So seven to eight months, probably, on luxury. Yeah.

Steve: So seven to eight months of hard money payments that you really see. Like, that's biggest win there. But even then, like

Landon: It also opens us up to a new way to also take down more properties for us to keep and own.

Steve: Right. Well, that's the biggest thing. I was just thinking as far as the flip side. Sure. And then on Instagram, Russian Nico, great name.

When do you think prices in Vegas are going to plummet?

Landon: Plummet. Wow. We're confident in that, aren't we?

Jesse: I mean, prices in Vegas have already come down, what, 20%, which I would consider a plummet. Mhmm. You know? So that's Is it going down

Steve: that much in Vegas?

Jesse: It's gone down quite a bit. What what are you guys at here?

Steve: I think we're, like, 10%.

Jesse: 10%?

Steve: On the high side.

Jesse: I think it was Well,

Landon: let me make it too far.

Steve: Let me take a step back. Phoenix Metro, it's, like, 7%. Yeah. Outside in the outskirts, it's, like, 20%.

Landon: But Okay.

Steve: I already knew that was gonna happen, like Yeah. Because I've seen this movie before. So we just didn't play that far out. Sure. Right?

We only focused inside the freeways.

Jesse: Which is smart, and I feel like Vegas is we have a lot going on in Vegas. Right? We got just got sports teams. We got f one. We got a Super Bowl in a year and a half.

We got so

Steve: much crazy for Vegas.

Jesse: Yeah. We got so much. I mean, we were just talking about it before the show started. We're on nineteen straight month straight billion dollar profit months for the strip Mhmm. Which has never happened before.

So, I don't know if prices are gonna plummet much further. We've seen inventory pretty much taper off. It, you know, skyrocketed for the first four four months since May. And then now it's kinda been on a taper, and I just saw someone post today. I haven't seen the stats, but they asked why did inventory just fall again.

Landon: So

Jesse: I wanna go look at the stats today at some point because, apparently, it came down a little bit. So I don't see prices plummeting much more than they already, you know, have adjusted in Vegas Mhmm. Just because of the infrastructure we have

Steve: being

Jesse: built out there and, you know, inventory is still low.

Steve: Yeah. I mean, I kinda feel the same way. I mean, really, you look at it like, if you don't have to sell, why in the world would you sell now?

Landon: No incentive to do that. Yeah.

Jesse: I mean, we just refied. I'm at a three two. You're at, like, a two eight. And, you know, for me to go buy anything, I'd like no. No one is going to sell their home with a three and a half percent or less mortgage rate to go assume a seven and a half plus mortgage rate.

Like, no way.

Steve: Yeah. I saw I was at an event, over the weekend. Bruce Norris held this event in in, Yorba Linda, right, just outside LA. And the stat he showed was 81% of the country sorry. 5051% of the country has an interest rate of 3.9% or less.

Jesse: I've seen that. I've seen that.

Steve: Right? So if your interest rate is 3.9% or less, you're for sure not selling yet.

Landon: Coupled with a good amount of equity.

Steve: Mhmm.

Jesse: Right?

Steve: Right.

Jesse: Unless you absolutely have to, you're not going to.

Steve: Right. I I shared this story. I don't know anything. I said on this podcast. Like, I did a a loan mod.

Right? So 2009 was not a kind time to be a realtor. So I did a loan mod in my house, and I got it down to a 2% interest rate, right, with the HAMP. At 2%, I was just looking at it. I'm gonna stay in this house forever.

Landon: Yeah. Why are you ever gonna get rid of that house? Right.

Steve: It wasn't until I had my third child. Like, this house I bought as a bachelor, got married, had my first kid, had my second kid. Once I had a third kid in this little three bedroom house, I thought, oh, alright. I guess I need

Landon: to buy it. You have a need.

Steve: I have a need. Sure. Right? It was no longer NFL? We sold it, in a scenario.

It it was, it made sense for the the reason why we sold it. But otherwise, I would definitely have kept it.

Landon: Yeah.

Jesse: Like, my house now, never gonna sell it. Like, why would I ever sell that house? Yeah. Three two. Great.

Steve: You know

Jesse: what I mean? My cash flow on it is free. Free money.

Steve: Well, is that free? With inflation the way it is, you're getting paid to keep it.

Landon: Right.

Steve: And then, yeah, the other comment was Reno's already feeling it, from the the prices. So, George Harris is asking what market are you guys in?

Landon: So primarily Las Vegas. Recently, we've come out to, your

Steve: expanded down here. Like, your

Landon: backyard. Yeah.

Steve: Yeah. We understood

Landon: it. Steve's backyard here, so we've done a couple

Jesse: of web Pete.

Steve: Yeah. And then, are you guys putting in really, really low offers, like offensive offers?

Landon: Nothing's offensive because it works for us.

Steve: Right.

Landon: So something that's delivered professionally

Jesse: Alright.

Landon: That has a reason behind it should not be taken offensively. Mhmm. Obviously, sometimes it is. But, no, they're they're usually not 50% of their list price. They're not just egregiously low.

Jesse: You'd also be surprised how many listing agents will tell you to go kick rocks and get extremely offended by your first offer and then call you back because you followed up and you were professional

Steve: Yeah.

Jesse: Two or three weeks later. You know, it's very surprising the type of phone calls you get. Yeah. So don't take a rejection, you know, for what it's worth. Follow-up because we got a lot of deals that way.

Yeah.

Steve: We had Caleb Pierce on the show last week. He's in the Carolina market, and he was one of the at one point, one numb I think, like, the number one REMAX agent in all of, like, North Carolina.

Landon: Oh, wow.

Steve: And the things we're kinda talking about, maybe inappropriate to say, joking about, is, like, stop targeting motivated homeowners and start targeting motivated realtors.

Jesse: Yep.

Steve: Because realtors are struggling right now.

Landon: Oh, yeah. Yeah. That's part of why we constantly do, like, these events and stuff where you're struggling doing your traditional business. Well, open your mind to working with investors. Mhmm.

Jesse: And one thing they have to comprehend, which realtors have a hard time comprehending is we work together Mhmm. To get deals done. Yeah. You know? You don't get don't get mad at me.

If you could see where I'm coming from and get on the same page as me, we might be able to make something happen here together.

Steve: Yep. On your deals that you guys are submitting, are you guys, offering for the realtor to double end it, or are you guys, like

Jesse: We're not on rare deals.

Landon: No. Very, very rare do we it's only on where that side is just insistent on that happening. So, okay, we'll get a deal done. But no. No.

Jesse: Yeah. And that that's just because that's just how our team works. I think that if you're a newer investor that doesn't you don't quite have the acquisitions agent that we have, that's a great option to go get a bunch of

Landon: deals. True.

Jesse: You As long as the numbers still drive with them representing both sides, do the deal. That's an awesome way to do it and and get agents on your side.

Steve: Anthony Russell on YouTube wants to know how are you guys financing your deals?

Landon: So it's a mixture. We have a handful of hard money lenders. We have some private money lenders. We have some private lenders that work like hard money lenders. So total mix.

Jesse: Yep. And I think that just goes into always be raising capital. Yeah. You know, I'd rather have more than more than we need and let it sit there on a credit than find a deal and not be able to have enough money to fund that deal that day. So always be raising money.

Steve: And then a follow-up question from Anthony is how many team members do you have, and what are their duties?

Landon: Oh, he will We're small. Yeah. It's a it's

Jesse: a small team.

Landon: It's a lean operation. So Mean and mean. Landon and myself. We have a full time salaried employee who is our office controller, admin. That was our first hire, kind of our secretaries too.

She does

Jesse: She started in, like, escrow paperwork Yeah. Because that was the first thing that we're like, hey. We don't need to do this. Let's hire out. So escrow was first.

She does everything now. And then now she developed into, like, controls our worlds.

Landon: So that's three people. And then we have a full time project manager, who's our eyes and ears in the field, visiting properties, making sure things happen, taking that role off of our shoulders, acquisitions team, so a full time acquisitions manager who's the primary leader of all that. That's pretty much the team.

Jesse: And a list a listing agent.

Landon: Listing agent. Yeah. In charge of the brokerage, educating the agents, taking on listings, actually taking that off our plate too. So but what is that? Six people?

Steve: So on the listing agent Mhmm. What are you paying the listing agent?

Landon: So it's personal. Flips.

Jesse: Yeah. So she runs the brokerage. So she gets paid per agent deal on the brokerage, and then she lists all of our flips to enhance her personal brand and her marketing and her just power behind the brand.

Steve: Sure.

Jesse: And we pay her $1,500 a listing.

Landon: I know it doesn't sound like a lot. But if you do fifty, seventy five flips plus all the agents do a couple 100 transactions, you get a piece of that. Yeah. It's pretty good living as if

Jesse: quick.

Steve: So I had a a a subtle debate this morning with, someone else about what to pay a realtor on a referral on on a motivated seller. So you guys or I guess you guys aren't really going direct to seller.

Landon: No. Not a whole lot. We get we get brought deals from wholesalers.

Jesse: Mhmm.

Landon: So this is the situation is an agent brought you directly to the seller who's ready to go, and they're looking for a referral fee of some kind? Mhmm. Well, it

Steve: was really more like if you guys were doing direct to seller marketing and then, you know, this clearly is not a, a wholesale deal or a flip deal. This is really more of a traditional listing. Oh, okay. Guys doing with that? But you guys aren't really doing direct to seller?

Landon: No. Not really at all.

Jesse: So we were doing direct to seller, you know, trying it out. And In the past, we lot of them were turning into just traditional listings, which is great for the brokerage. But we listed them in house for we're charging the seller 3% listing fees to list them in house, and our listing agent got paid 30% of them?

Landon: Something like that. Yeah.

Steve: Yeah. And that's in line with what I was expecting. Yeah. He was paying more, and I was like, dude, you're overpaying your realtor.

Jesse: And for our acquisitions agent, the guy who finds all of our deals for us, we split commissions fifty fifty with him. So when we close a deal, if it's 3%, he gets one and a half, and then he credits one and a half towards our closing costs.

Steve: Yeah. Cool.

Landon: I love how he's so nonchalant about that. People are usually like, what? You're you're taking half. How does why does he wanna work with you if you're taking half?

Steve: Volume.

Landon: Exactly.

Jesse: Yeah. You get it.

Steve: Well, I've been on this like, I've been on both sides. Right? Because I've been the realtor. Yeah. I've ran the realtor team.

I've ran the brokerage. And I was that guy that was submitting all those crappy offers every single day. Yeah. Right? Like, my one of my first, you know, like, roles or gigs or you know?

I went to the REIT. I was super excited. I got this investor. Right? And he wants to buy a lot of properties.

This is so exciting.

Landon: I get to work for him now.

Steve: I get to work for him now. Right? And I was writing, you know, 60 offers a day and just getting rejection, rejection, rejection. It's like, this sucks. Yeah.

Right? I I don't think I did more than, like, three or four weeks of that. I was like, okay. This is clearly not a good use of my time. I'm gonna go back to prospecting.

But yeah. So I've sat in every single one of those seats. But, yeah, like I said, you know, running a team, if I spent the money marketing, right, I got the VAs to cold call all the expired listings. And then you went to the appointment to go secure the listing, and you bring it back to the team, and you're done. Right?

Oh, I took that back. You have to negotiate the offers. Okay. But the administrator team takes care of TC, escrow, and everything else. Like, 30% was just the norm.

Jesse: That's what that's what we paid ours, the 30%.

Landon: Yeah. And this opportunity is falling into your lap. Yeah.

Steve: Right. Yeah. So but like I said, I I had a subtle debate this morning with someone else. They're like, fifty fifty. Enough?

They said fifty fifty. I was like, That's

Jesse: a lot.

Steve: Yeah. That doesn't make sense to me. No. Especially with how much we spend on marketing.

Jesse: Right.

Steve: So operating your business in a luxury space, what is your total gross profit margin to operate your business? There's a lot on YouTube.

Landon: Oh, interesting. Gross profit margin to operate our business.

Steve: I don't know

Landon: if I

Steve: So gross profit. Right?

Landon: About how to quantify this.

Steve: So you take the revenue and get rid of all the, like, after, you know, the cost of the property and commissions. Right? Like, what kind of margins are you looking at after paying commissions?

Landon: So we have a margin for our desired investment, what's a green light for us. Mhmm. But I'd say that's in relation to also making lots of profits. So just running the business, that's obviously a lot smaller margin. But we're seeking 10 to 12% cash on cash returns on every single project.

Steve: Okay. So on a property, 10 to 12%.

Landon: Yes.

Steve: So you take all that profit. Do you know, like, after paying and because you have a pretty small team. So your overhead doesn't sound like it's very high.

Jesse: Small. We have small. We have small. We have small. We have small.

Landon: We don't really have

Steve: really have marketing.

Jesse: No marketing.

Steve: It's just social media.

Jesse: Right. Yeah. We pay our project manager $3,500 per property to manage it

Landon: as an expense to the deal.

Jesse: We pay the listing

Steve: comes out of the 12%

Jesse: down there. Bucks. So we have a $5,000 overhead on each deal, pretty much is what it is.

Steve: So, I mean, it sounds like it's pretty close to near a 100%. Right. It's

Jesse: Yeah. I'd say it's 90%.

Steve: And that's actually

Landon: All the marketing that, like, someone like yourself does, you just wouldn't you'd be so surprised at just how low you could get your costs.

Steve: Well, so we were talking about, right, you and I, the three of us had a conversation about, potentially working with me as a mentor. Right?

Jesse: Mhmm. Yep.

Steve: And that was the exact conversation we had. I was like, why are you talking to me? Yeah.

Jesse: Right. Right? And that that was a specific question. And then I think from there, we're like, you know what? He he's right.

Yeah.

Landon: He said, you wanna go spend a bunch of money? Why?

Steve: Yeah. So I'm I'm just sharing that. Right? Because the people that are watching, like, you know, Steve's might be just, like, this greedy guru trying to close their room. Steve's a

Landon: real one for that.

Jesse: Let me give him that. I honestly think we took that phone call, and that's what I was just bringing up a couple minutes ago. Like, we're gonna join, and you told us, like, wait. You spend no money with what you're doing and make millions doing it. Yeah.

Why are you calling me? Yeah. But that's the exact thing. It's like, we didn't decide to start that way. Well, one, we knew the MLS only because I was a realtor for two years, and that's the only thing we knew.

We didn't know any other way to get deals. But we also didn't have a a lot of money when we started. We weren't given money to start. We started from scratch. So for those people who don't have a lot of money to spend on direct to seller and compete against the big dogs like you Yeah.

MLS is a great way to do it. It's you know, our our p and l, I think we're at, like, 85% profit margin. Yeah.

Steve: Like

Jesse: that. Like, we run such a lean business.

Steve: Yeah. And that makes total sense to me. So, like, you got you guys. Right? We had Caleb Pearson last week with Zoom offers now.

Right? That's his thing. He makes offers off MLS. Mhmm. I got Ryan Zolan, who was here just a couple months ago.

Same thing. Right? Like, it it's a super profitable model. May not be easy, but it's a super profit model because you don't have a lot of, marketing expense per se. You just have a lot of sweat equity.

Jesse: Exactly. When and it's not labor intensive. Like, to run a direct to seller marketing company, you need humans too. Yeah. We don't need very many.

We have one guy submitting 20 to 25 offers, five to six days a week. Mhmm. You know, out of the three, four hundred a month he's submitting, we're buying eight to 10 of those.

Steve: Yep.

Jesse: You know? And that's wholesaling a couple of them, buying a couple of them. That's our seventy seventy five deals a year. That's just what it breaks down to.

Landon: With that amount of even lower, but with a decent amount of volume, you're also able to structure where the core people, the five, six that we mentioned, only one or two of those is on salary. Everybody else is an expense to every deal.

Steve: Yeah. So

Landon: that's not really overhead to us.

Jesse: Acquisitions gets paid commission at closing. Doesn't cost us a dollar. Project management, listing agent gets paid profits at the end of the deal. Listing agent gets paid at closing out of profits. Yeah.

The only person we really have on salary is our controller.

Steve: Yep. So follow-up question from Alado is what mistake do you commonly see made, from those trying to do what you're doing in the luxury space?

Jesse: Not knowing the numbers on the GC side, I think that project management and construction is heavily underestimated in terms of these luxury deals and what it takes and, you know, things add up quick. Like we said, I mean, even us on this big deal. Like, we had enough of a buffer, but

Steve: one three hundred k over budget.

Jesse: We're 300 k over. You know? And we're x 30 at 3%

Landon: over. This is what we do, and

Jesse: we're 300 k over. I mean, that's just an anomaly of a deal because it's total design build. But, you know, not having utilities in there on a luxury deal where they're a couple thousand dollars a month and seven months in, it's $2,030,000 dollars in utilities added up, insurances, you know, those costs that people forget to hold.

Landon: Mhmm.

Jesse: For us in Vegas, HOAs add up very fast. Yeah. So it's really just showing you a

Steve: double gate.

Jesse: Right. And Oh, yeah. It's having those numbers dialed in and the construction as tight as possible.

Landon: The construction is huge. Number one. I think they a big thing I see is they try to apply what they evaluate a property with to a larger property. So they just multiply what they do by more square footage. Mhmm.

Jesse: But

Landon: they don't understand that everything from your countertops to your door handles are going to cost more. Everything is going to cost more, and there's more of it. Yeah. So that's just so easy to overlook.

Steve: Yeah. That's one of the things that has always frightened me. Right? Like, I already don't have a great eye for flipping. I just it is what it is.

I just don't have an eye for it.

Landon: Accepted it.

Steve: Going to luxury scares the crap out of me. Right? Because every detail matters.

Jesse: Totally.

Steve: And, you know, like, you see some of these, like, really bad flippers on a lower end home. Like, you know, they'll spend money here, spend money there, and they'll skimp on maybe, like, the master bathroom. Right? Yeah. And, like, you completely shot yourself on the foot.

Yeah. It's only a handful of details on luxury that you can just skimp out on, and it crushes the whole deal.

Landon: I'd say those are actually where you really stand out. Yeah. Yeah. They can crush the whole deal. They can make or break the deal.

Yeah. And if you do pay attention to those, if you're good at those, then you start I try to always think of my experience as a buyer walking through this flip for the first time.

Jesse: Mhmm.

Landon: How many times how many corners am I gonna turn, and how many times am I gonna say to yourself, oh, look at that. Mhmm.

Jesse: Oh,

Landon: what did they oh, look what they did there. The more I can get someone to say that, I guarantee they're saying it more in my house than they are in any other house they walk through.

Steve: Yep. Yeah. And and and it's just one of those things that you have to pay attention. Like, you cannot overlook this.

Jesse: Instructions here.

Steve: Another question from Lotto is what market that you're currently not operating in would you move into if you had to?

Jesse: Oh, yeah. We we wanna go to Florida so bad.

Landon: We've wanted to expand a lot. I mean, now that they just went through hurricane, it kinda Yeah. Feels a little Yeah. Sketchy. But, yeah, I love Florida.

We've our parents have loved going to Florida forever.

Jesse: On there our our whole lives. So Florida would be great. You know, Scottsdale thinks that's an incredible market too. Yeah. Which we started.

No matter what happens with it, I think Scottsdale is just such a great market.

Steve: I mean, they're one of the strongest cities, right, during this, downturn. Like, they're doing totally fine.

Jesse: Scottsdale?

Steve: Mhmm.

Jesse: Good. Love it. Yeah. Love being here.

Landon: Yeah. I'd say South Florida would probably be number one on our list. Texas has always been pretty strong, so I like that.

Jesse: Another one that's kinda low key for us that we don't talk about a lot, but I think would be phenomenal. I think they're hurting a little bit right now, but Salt Lake. Yeah. Salt Lake. Sure.

In Utah, I think, is just explosive all around with their communities. So Saint George, I know, has blown up quite a bit. Oh, yeah. But Salt Lake would be great too.

Landon: And that seems easy too. It's like a two hour drive for us.

Steve: Yeah. Yeah. Salt Lake is is, is kinda like us

Jesse: Mhmm.

Steve: Kinda like Boise. It's just like we all kinda and Vegas. Right? Like, you look at, you know, Phoenix, Vegas, Las Vegas, Salt Lake, and then Boise is just Yeah.

Landon: That longitude something is just similarities.

Steve: We all experience this volatility together. Other question is if you couldn't use MLS, then what marketing channel would you use?

Landon: These are great questions, guys. Also, thank you. Thank you all for doing this.

Jesse: If we couldn't use MLS, what marketing channels would we use? We would we would jump into our program as fast as possible and educate ourselves on direct to seller, you know, hiring VAs. We know we know how to get real estate transactions done. We know how to have those conversations. So if I were to hire, you know, a couple of VAs and get a couple of salesmen in the office, I'm very confident that we are fully capable of building a direct to seller team.

Landon: Mhmm.

Jesse: So I would just go I would go VA route, cold call route, and just hit the numbers game because I think real estate revolves around a numbers game.

Steve: Yeah. I mean, that's what we're doing right now. We dialed back marketing. You know, we got punched and got pretty hard, right, in the summer. And so we've, gone back to cold calling, and thank goodness, like, that is working for us.

That's a very low cost

Jesse: Yeah.

Steve: Marketing channel.

Jesse: We've seen a ton of people within, like, our networks who saw Ryan doing TV out in Vegas, and they all went and spilled a bunch of TV commercials. And they're no longer doing TV commercials. And then they you know? So they're trying all these, you know, new age things where it's like,

Steve: I would

Landon: call call.

Jesse: I would hire call callers and focus on talking as many people on a daily basis as possible.

Steve: Yep. And we are working on something where maybe we'll be, training some other people's cold callers. So

Jesse: Awesome.

Steve: See where that goes. On Facebook at DM McCall, emailing to the seller's agent, can you share some highlights of that email? Like, what are those things you're highlighting in

Landon: in email? So so with our offer, right,

Jesse: is

Landon: what we're accompanying our offer. So two of the biggest things I can say, don't overlook them. I know it's simple, but don't text, call, send an email, text body of your offer. Send a full executed offer, an actual RPA with a proof of funds. On top of that, inside the email body, it's written to give a brief this isn't a novel.

This is not expecting to read. This is crazy. So a small paragraph about who we are, what we do, little Vegas history, a little bit about us, and then the offer is summarized in the middle of that template.

Jesse: Mhmm.

Landon: So the important things that an agent or seller is gonna scroll through the ten, twelve pages to find are right there. So your due diligence time, your COE, the offer price, the EMD amount. Some of those things that they're gonna look for, again, convenient right there.

Steve: Mhmm.

Landon: I think people have had a good response to that. I like receiving these. I've heard that before. You guys obviously present yourselves really well. Heard that a lot.

I think those things go a long way.

Jesse: And at the end of it, I think, which we mentioned before, we asked for Yeah. Hey. If this one doesn't work, we completely understand. If any other deals, send them our way. Thanks.

Steve: Have you guys considered including a list of properties you guys have purchased in your offer?

Landon: That's a good like, a track record sort of thing.

Jesse: We kinda say the number. Like, we've flipped, you know, 300 plus properties here in Vegas is in that little bio paragraph. But

Landon: I think a good thing to do would would either to make, like, a landing page or a quick thing to check out some of our projects and actually see the because, visually, they're better than telling.

Steve: I can

Landon: I can show you a picture that's way better than I could ever tell you about it?

Steve: So So what we've done in the past is we would include an MLS printout. Right? So with our Flux MLS, we can show you, like, just a search of all the properties we bought.

Landon: Bought. Mhmm. Okay.

Steve: And we just include that because then there's, like, a row, and there's, like, okay. That's a credible source because I'm a realtor.

Landon: Sure. So From the MLS

Jesse: do that on ours as well, pull all our recent buys.

Steve: And then another question is, do you have any thoughts to share on common characteristics that Tracy see from sellers willing to sell to an investor? So I guess I don't because he doesn't really deal with the sellers

Jesse: We don't. Indirectly. You know, when we talk about the MLS, we explain that, like, this is you know, during the seller marketing, you're just trying to find some a motivated seller, some motivation, and then you dive in deeper. For someone to list their home on the MLS, they're a motivated seller. They've raised their hand.

They said they wanna sell. They've signed contracts with an agent. They allowed a photographer to come into their home, take photos, and put it on the market. Pretty motivated person.

Landon: Mhmm.

Jesse: So the motivation's there. You never know. We tell you we we tell students in our program this all the time. You can't let the agent get it in the way of the seller's motivation either. You never know what a seller seller's motivation is going to be.

So our acquisitions manager asked some questions. What's most important to them? Sometimes a five day cash close scares the crap out of a 75 year old woman who's on her own and needs sixty days to sell. So asking those questions is super important because with us as investors, that's another way to get a deal done. It's not always price.

Mhmm. It could be like, oh, your client needs sixty days to move out. We can close next week and give her free rent. We can close in sixty days. We can pay for moving.

We could do anything just like you do in direct to seller Mhmm. To make this deal work. Mhmm. It's asking those right questions. One reason that we always, just to backtrack a little bit, always submit formal offers executed as well because, you know, as well as I do, as an agent, you have to present all offers.

Mhmm. If I text you as a listing agent, hey. Do you think your seller will take $7.50? I'm deleting that text. Mhmm.

But if I email you an executed offer and you as an agent goes, nope. They don't wanna take it. Okay. Can you send me the executed rejection, please?

Steve: Mhmm.

Jesse: Because it shows proof.

Steve: Hate you guys.

Jesse: Have to.

Landon: Even when they sit down, and let's say they have five

Steve: offers. Just hate you guys.

Jesse: The the listing agent is more scared to present that offer than the seller. You don't know what the seller is gonna do.

Landon: But Yeah.

Jesse: This person in the middle might be just petrified of sitting with that person and showing them an offer.

Landon: I would say another element that's really, really important not to overlook. It's nothing that's written. It's a behavior. It's how often that listing agent's gonna hear from us Mhmm. Just to check-in.

Even sharing some markets, something that they might not know about. Hey. I saw another one was listed down the street from you. Is is that affecting you? Is that good

Steve: for you?

Landon: Whatever. Just those points of contact over maybe a few months. When they sit down, they have four offers to look at. Here's this guy. He texted me $3.50, and I finally got him to send me an offer.

It's half written.

Steve: Mhmm.

Landon: Here's one. Yeah. It's low, but who's it from? I don't really know. Here's this one.

I've talked to these guys 17 times in the last five weeks. Yeah. I know everything. Here's a bio about them.

Jesse: Right.

Landon: You immediately stand out. So that presenting, it goes a long way.

Steve: Well, the other thing you said too, you know, is making sure the realtor doesn't get in the way. Yeah. And you probably have some nightmare stories about this.

Jesse: Of course. You know? You you they cuss you out. They tell you, no. They don't you know?

There's no way in hell my seller's gonna take this deal. You you I don't even know where you come up with these numbers.

Landon: I'll make

Steve: sure you

Landon: never buy a home in this neighborhood ever again. Right.

Jesse: You know, they just

Landon: Tomorrow, we close on another one.

Jesse: It's not because of the offer. It's because they're scared to present it. Yeah. Yeah. So, you know, you're asking the right questions and, you know, as stickler as it is to say, hey.

My broker and, you know, I tell my acquisitions agent all the time. Put it on me. Hey. My broker requires a sign rejection for our file. You know, we have to show that you presented all offers.

My broker didn't want

Landon: the right

Jesse: thing. You know? And you never know what a sell seller will do. You honestly don't.

Landon: Yep. We're hated. We're hated.

Jesse: Steve hates us.

Steve: I just hate that part.

Landon: Yeah. Because

Steve: every time someone's like, you know, show me the sign of rejection, like, no.

Jesse: Right.

Steve: No. I'm not showing you the sign of rejection. But it's not because I don't present it. It's that if I had to submit 16 rejections, it's a pain in the butt. And every time someone's like, my broker requires, like, I don't care.

That was a bit difficult to get

Landon: them to call them.

Steve: Another question is what kind of confidence, level do you have that your MLS buy model is gonna be transferable to other markets, particularly in lower price point areas, say, under 300,000?

Landon: So what I like and and one of the reasons I'll give as an example is the the one of the reasons we love Florida is because it's not exactly the same properties. Like, if you were to take Vegas and Phoenix, they are really, really similar. The construction styles, age of the properties, the mix of you have HOAs, you have non HOA, all that just feels very similar. When you go out to Florida, might not look like that at first, but it's actually a good mix of that also. It's just a totally different layout.

But you have low price point communities that are in non HOA, and, like, those areas are very homogeneous. Like, half of Vegas is just like that. But then ten, twenty minutes away, you have golf course. You have gated country club. You have, like, nice stuff.

And so I really see that we're I think we're gonna have good success in markets that have the same, like, asset mix that we're familiar with. Yeah. And I think when you have really desirable areas that attract a certain type of buyer mixed in with those other ones, there's just creates the right opportunity for us.

Steve: And Dee was asking, was there a cost, or what is the cost for the boot camp?

Landon: Oh, so the boot camp, which I would love if we could, you know, send a link and people there's a ton of information on our landing page, our site. You can, even set up a free call with us or the team to find out more. Ton of information, probably answer all your questions there. But the boot camp is 5,000 per membership. And we're doing, different discounted rates and things for, people if they do wanna sign up.

So definitely reach out to us.

Steve: Yeah. It's an unreasonably low cost. You're screening it up for all the rest of us. Yeah. It's gonna go up.

Landon: I know it's gonna go up.

Jesse: Oh, yeah. It's definitely going to go up. I mean, there's so much value provided. I mean, people 80 something people left today with multimillion, you know, and funding. That's that's huge.

Landon: So Yeah.

Steve: And then, from Chris Vasquez. What's up, Chris? Hey.

Landon: Up, Chris?

Steve: So he says welcome to Scottsdale flipping. And, how are you seeing interest rates impact your exits on the luxury side? Scottsdale banger.

Jesse: Yeah. So, I mean, just to break down where we've been the last five months, we bought, what, $23,000,000 worth of properties in April and May. Mhmm. We're down to our final six. So, you know, we're still standing.

Everything has been good. We have a couple that are sitting. So we've just, you know, liquidate those so we could recoup our capital and buy more. I think that this is a market that presents a lot of opportunity. When we talk to high level people that have been through the cycles, and I'm sure you would say the same thing, it's I wish we would have known and done more business in the downturn Mhmm.

Than we did because of how much money can be made. So I think we're this is kind of that time where we all wait for it. Like, oh, man. I wanna be I wanna have so much cash ready for the downturn. Sure.

Okay. Well, here it is. Let's go. You know? Yeah.

So it's, moving deals. They're taking a little bit longer. We're liquidating some at, you know, just above breakevens. We've had a couple breakevens. Just what it's gonna be, but game is to get our capital back to buy more.

Landon: What I find with people that are faced with the current environment of, I I'm gonna have to buy a house, let's say, but I'm gonna have to take whatever interest rate I can get right now, which is obviously not favorable. They're also becoming a lot pickier. So if I have to buy a house right now, I want it to be the very best house that I could possibly buy, whatever I'm approved up to, absolute dime of the bunch. Mhmm.

Jesse: And

Landon: so for us, where a lot of people get tighter with their expenses because things get more expensive, they start doing less to the homes, rehabbing less, pulling that back. Big mistake. We double down. We go a little bit extra. We try to put extra bit of rehab to really shine in the house because we know people are becoming, like, pickier.

Yeah. So that's helped us.

Steve: So going back to some of these other questions, what does your business look like right now versus when you guys first started?

Landon: Oh, night and day. I mean, the core the core is the same. Mhmm. But it's it's a lot more enjoyable, I think. Because when it's all on you, there's just no escaping.

There's always the next thing to do. As soon as you're done with that, well, there's a pile back here that you have to get to, and you don't experience the time freedom, some of the luxuries that come with owning and operating a real estate company. But as you grow, which we've done over the past few years, and you hire, you delegate, and you just generally get better at what you're doing, you start to kind of enjoy watching it all happen and seeing it in front of you.

Jesse: I think it's become a little bit more challenging, though, you know, in aspects where it's like we're doing so much at one time still right now, even if it's not like, yes, not in the actual rehab of a particular property, but we're trying to do more than we've ever done. We're raising more capital than we've ever done. We're doing more We're starting other businesses. And more businesses. So it's like it's we're challenging ourselves so much every day right now to try to succeed in multiple different, you know, facets of the business, which has been fun.

I think it's enjoyable to do that and, you know, have some shortcomings that we gotta work through and and, you know, fell forward with, which is kind of what we've experienced the last five or six months. You know? It's like, man, you know, we had a lot of our own capital and a lot of homes. Mhmm. Got it back, thankfully, you know, a majority of it.

So it's like, k.

Landon: Not do that again.

Jesse: Let's not do that again. Let's use more p other people's money and raise more capital so that we could keep our own and go buy rentals or Airbnb's or whatever we wanna do with it. So I think, yes, it's actually become a little bit more challenging since

Landon: when

Jesse: we first started, but in a growth way.

Landon: Yeah. We keep moving the goalpost. Yeah.

Steve: Well, that's I think that's, like, the, what's the word I'm looking for? That's the man mantra, right, of entrepreneurs. We're always moving the goal for that. What freedom does real estate afford to you guys?

Landon: So one thing I love is is being able to not report to necessarily anyone. Mhmm. And that may seem like a small thing, and the the reality of it, like, what do you mean? You could own million dollar homes, or you could, you know, obviously make millions of dollars in profits or have time freedom. Like, oh, those are all good things too.

But I just like I said before, what what were the few things you did before you got into real estate? Mhmm. They just ate away at me, and it's something that I just knew wholeheartedly. I gotta get out of this. I cannot have this boss that is making sure I'm in there at 9AM.

Like, I just I hate it. So I that's my favorite thing.

Jesse: I'm with it.

Steve: I think I'm in

Jesse: the same boat. You know, obviously, yeah, being able to spend, you know, vacay we go on vacations quite a bit with our families. Oh, yeah. Traveling quite a bit. You know, being able to golf on Fridays has been enjoyable this last year that we started picking up golf.

So, yeah, just having the freedom of time. You know? We we work a lot, though. You know? We're we're not we're not slackers by any means.

I mean, you can find us in the office. Pretty much, we report to each other. So I I don't necessarily agree with it. Cool because 100%. Because if I'm not there, then where you're at.

If he's not there, where you at? So it's like But

Landon: also with with that, though, it's like, oh, well, I'm I'm at this property this morning. I'm not in the okay. Well, I've decided I kinda wanna move around this week. We can do that. Yeah.

Steve: You guys charging 5 k for golf yet?

Landon: Not yet. No. All we're charging is 4.

Steve: I'm just

Landon: no. We we should start charging, though.

Jesse: I'm not good enough. I've actually declined my golf k in these last, like, two months, so I gotta get back.

Landon: To to put somebody through that, they honestly, we should pay them. Yeah. What

Steve: is your guys' why?

Landon: That's great.

Jesse: So I'll start. My why my entire life has been kind of where we started this conversation today, which is the scrutiny of that silver spoon. Right? Because I didn't we didn't come from the gutter. So I don't have a why of, like, oh, I gotta take care of my mom or anything like that.

You know? Although, I would like to. We just didn't come from that type of background. So it's the challenge of overcoming those naysayers or those, you know, the scrutiny of that silver spoon mentality from people to show them, look. No.

We work hard. Like, I'm a grinder. I'm not spoiled. I wasn't given everything I have in my life. Like, I'm willing to work for it.

So that's been the why up to this point. Now I'm kind of over that mentality, and I have a little boy coming in January. So Congratulations. New why.

Landon: Yeah. It's definitely

Jesse: I'm excited. Big why.

Steve: Yeah. We got you up on your shoulder. Yeah. I like it.

Landon: For sure. I think for me, one thing I've I've always experienced and seen whether I recognized it or not was something from my dad where, again, rags to riches made his way through the world. And what that gave him, where he has such a deep level of confidence in himself, and he doesn't need it from anyone else, I know that his perseverance, his accomplishments have given him that. So whether you start at zero or whether you start maybe with some good cards in your hand, being able to take that, build on it, create something, and instill that confidence in yourself, it's really the only way to get it. But once you have it, it's something that's just irreplaceable.

So I've always seen that in him, admired that in him, and I figured out, okay. Well, I have to go do something like that in order to get it for myself.

Steve: Yeah. That's profound. What is your biggest struggle today?

Landon: Biggest one today. Let's just pull out the list. Oh my god. No. Or business wise?

We always have both. We're always in struggle. Again, we're we're always moving that goal post. So we're always from a what do we need to do to get to where we wanna be mentality. I think right now, just to be frank, like we've mentioned, we bought a ton of properties.

We haven't been investing for decades to navigate full market cycles, whatever we're going through right now. So the biggest struggle, which we're almost out of, I'll say, has been over the summer, over the fall months of learning what happens and how quickly things can happen

Steve: Mhmm.

Landon: Being creative, hustling to get things done, reducing the risk, get it off the books, being nimble, being flexible, and learning how to do that when the time really is it's necessary to do. That's been one of the big struggles through this year, I'll say.

Jesse: Yeah. I agree. I think in that kinda goes into, like, being stagnant has been a struggle. You know? Feeling like, okay.

Can we buy? Like, yeah. We wanna buy. We know we wanna buy. You know, we wanna buy more and get back to 25 properties at a time as soon as possible.

And it's a struggle mentally not being able to quite get there yet. Or Or if

Landon: we wanna do that only if they make money. Yeah.

Jesse: Not feeling confident in it yet. Yeah. So it's, you know, I I I'm the go go go personality.

Steve: Mhmm.

Jesse: So stepping back, like, I have come to Jesus with the fact that, like, okay. If we have a twenty five year career and we have six months where it's, like, up in the air, stagnant sea or, you know, shifting and adapting, so what? That's just the name of the game. Like, this is never gonna be sunshine and rainbows all the way through. So

Steve: Yeah. This is something I've been talking about. I don't hear a lot of other people talking about it, so I don't know. For me, I look at it. Like, you say, you know, we're gonna be doing this for a long time.

Mhmm. It's really not important to make a lot of money right now. And for me, it's really more important to make sure we make it through this.

Jesse: You stay

Landon: in the game.

Steve: Yeah. Right. Like, the worst thing that happened is game over. Yeah. Right?

Jesse: But I

Steve: don't even hear a lot of other people talking about it. Everyone else talking about double down marketing, crush it, this and that's like, I don't I don't

Landon: We wanna survive another day.

Steve: Right. Yeah. I'm 43. I don't wanna start over. How will you guys know when you're successful?

Landon: I think we already are. Yeah. I don't I don't think that that is a point that you arrive at. It's a feeling that only really you can give yourself. Mhmm.

So I I think I learned a long time ago to just give that to yourself. Yeah. Look around. Like, we're living a great life. You're successful.

You are.

Jesse: You know, nice, great families, great people in our lives, you know, live well. Successful for sure. I agree. Yeah. I don't I don't think you know, even though we're always moving the goal post on what we wanna achieve, the feeling of success is already there.

Landon: Perspective really helps. Go travel a little bit, and you'll feel successful.

Jesse: Yeah.

Steve: For sure. I've learned that as well.

Landon: Yeah.

Steve: What is your superpower?

Jesse: What is my superpower? Jeez. I don't know. Maybe the lack of fear sometimes and, you know, perseverance in terms of, like, the maverick mentality? The maverick, like, ultra maverick mentality where, like, they'll say something and be like, let's just do it.

It's easy. Mhmm. Like, this is gonna be easy. Like, so let's just do it. And I'm like,

Landon: what money are we gonna do that with?

Jesse: Like, I am just throwing things, you know, shit against the wall the entire time trying to get things to stick. And Jesse with his personality is like, yeah. Let me go try to figure out how to get it to stick, but I don't stop throwing.

Steve: Yeah.

Jesse: You know? And that's just what I do is constant reach out, constant just throwing things without even thinking like, oh, it's gonna be hard to do. It's like, no. It's gonna be easy. Let's do

Steve: it. Constantly stretching the bubble.

Landon: Yeah. That's a good thing. Yeah. I think I am great at understanding people, reading people, and getting people to like me and wanting to play whatever game I wanna play. Yeah.

Whether I have a positive motive or a secret negative one Mhmm. I don't let that show, but I can definitely get anyone to cooperate.

Steve: Yeah. So, you're in Vegas. Are have you applied that in poker?

Landon: I haven't on purpose. I do have a poker lineage. My my grandfather was a professional poker player. Mhmm. I've never had good luck with it.

Yeah. So whenever I sit at a table with cards in my hand, I lose money. So I learned really early on to stop doing that. Yeah.

Steve: I was sharing with you guys, before the we wanna hear. I was like, I'm gonna be going there next month. It's like like, where do you wanna stay? I was like, I don't care. I'm gonna be at the poker table.

Doesn't matter.

Landon: Poker table's everywhere.

Jesse: What room do you like the most, though?

Steve: Well, for me, since Aria has the best room, it's easier to stay Aria. Yeah.

Jesse: I love Aria.

Steve: Right? But for me, really, I don't care. I'll just go to wherever the game's at. Yeah.

Jesse: And you're right

Landon: in the middle in Aria City Center.

Steve: Yeah.

Landon: Bellagio's there. Caesar's not far. You can get around to

Jesse: The Strip's easier to play poker on than the local casinos because you get the people that come to local casinos, and they just take down entire tables. The Strip is like newbie drunk people that just wanna play poker.

Steve: Yeah. My favorite I don't know if it's still like this. My favorite was Planet Hollywood.

Landon: Oh, really?

Steve: Right? Because they literally had the poker room right outside the club.

Jesse: Yeah. So

Steve: you got all these drunk guys who are frustrated because they didn't get any action, and now they gotta go to the poker table to flex. And so they're drunk, and they're flexing.

Jesse: Yeah. And you just take them.

Landon: Betting your action is not a best game.

Jesse: Love

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

Landon: I will say I've learned one recently. So it was introduced to me through one of the members of the Maui Mastermind Mhmm. That we just attended, like, a month ago, a month or two ago. And he introduced me. It's actually a book, an audiobook, but it's around a philosophy.

It's called The Gap and the Gain. Mhmm. Amazing. So it kinda speaks to the question, like, are do you consider yourself successful? Like, are you happy with what you've done?

It's just a way to perceive yourself completely flipped on its head. Yeah. So you'll notice once you start reading it, looking into it, that everyone and you included are doing this this way. You're looking at your success and positioning yourself in a certain way. Basically, all looking into the future.

And so it flips that on its head and try to derive your happiness and your success from what you've already done. Mhmm. And once you flip that around, it's just life changing.

Steve: Yeah. It's, I haven't read the book, but I got a chance to go see a strategic coach, right, with Dan Sullivan, who's the principal Yeah. Came from. So, yeah, if you like that, I highly recommend going through strategic coach. There was lots of great entrepreneurial lessons in there, and that was one of the, big lessons I learned there.

And it's such a simple concept.

Landon: I know.

Steve: But once you learn it, like, oh, yeah. Like, stop chasing and start stop focusing where you're short

Jesse: Yeah.

Steve: And start focusing on successes you've had.

Landon: It's not even just business. Yeah. What was so, like, revolutionary was how many aspects of your life you do this in.

Steve: Mhmm.

Landon: How many times a day you find yourself in the gap Mhmm. As as he'll call it. Yeah. And that was just crazy to me, but I love it.

Steve: Yep. How about yourself?

Jesse: Biggest lesson I've learned. You know, I'm I'm a pretty impatient person, you know, just naturally with my personality. Yeah. Just with my personality. So I don't know if this goes into the gap and the gain explanation, but, yeah, being more present is just, like, I have to be more present because I'm always I either beat myself up because I'm not where I wanna be yet.

Mhmm. So, you know, I living more present is just, like, my biggest goal right now, especially with the with the sun coming in, you know, January, pretty hot here, pretty quick. I gotta just educate myself on that a little bit more and and and do it more because when I think about it, I feel so much better.

Steve: What are you doing to be more present?

Jesse: You know, I'm just thinking more on a daily basis. Like, every morning, like, in the shower, I'm sitting there for five minutes, like, thinking about my day. You know? I'm back in the gym a lot harder thinking about my body and my health, trying to be the best person I could possibly be on a daily basis again. You know, I let that go a little bit, in recent months, and just getting back there, I think, is huge.

Steve: Yeah. For me, the the greatest thing that helped me with this was, there's a program by Darren Hardy's Insane Productivity. Right? And it just gives you all these things that you you gotta do, right, to kinda set boundaries, so that you can't be present because it's hard. I'm the same way.

Jesse: Right? Like,

Steve: not not so much these days. Still happens from time to time. But in early part of my career, my wife's like, where are you? Like, you're there, but you're clearly not here.

Jesse: Yeah. Like, I mean, she'll talk to me and ask me a question three times about you. Hello? I'm like, wait. What?

You know? Like, I'm thinking through, like, my entire day Right. That just happened. It was like, no. I gotta I gotta here.

Yeah. Intentionality plays a big part of that. You

Landon: can't do that unless you set an intention to do it.

Steve: Alright. So I highly recommend if you haven't checked that one out.

Jesse: Yeah. I have to.

Steve: Which failure you did did you learn the most from?

Jesse: Which failure? Mhmm. I think just this last, couple months, which I don't consider a failure. I consider it more of a lesson learned, like you said. We put way too much of our own capital into our business, and we knew better.

You know? And it's just that meant that shiny object syndrome where our mentality was like, okay. We know something's gonna happen, but we have one last group of homes. Like, it's always one more time. You know?

And you don't know when the when the ship stops. The music stops. Like, there's one more time, and boom. Music stops. So, raising more capital, using more people's money, I think, is the biggest failure I've learned from so far where it's, like, we talk about and I guess it's more so we talk about it, but didn't do it.

Mhmm. It's when we know we have to do something, we need to do it. We need to execute from here on out.

Steve: Yeah. Well, I I made that same exact mistake. Right? And because I we knew something was gonna happen, but it was so freaking abrupt.

Jesse: I know. Yeah.

Steve: And then, you know, going back, do you got do you snowboard?

Jesse: So good. Do you

Steve: snowboard or ski? Snowboard. Right? Like, what when do people get hurt?

Jesse: I don't know.

Steve: Last run of the day.

Landon: Yeah. Right? Right. Right. Right.

Jesse: Yeah. Yeah.

Steve: Yeah. Right? At that edge. Yeah. Sun's down.

Landon: One more run.

Steve: Yeah. Right? You're exhausted, and it's just

Landon: Yeah.

Steve: When you wipe out.

Jesse: That was, that was a pretty big learning experience. Yeah.

Steve: And there's something I said to my wife. Right? Like, you know, fortunately, you know, we're young enough that we will be prepared for the next cycle.

Jesse: Mhmm.

Steve: Right? Like, there's still time. Greatest lesson, what failure did you learn, the most from?

Landon: So we learned a early lesson, with as we were bringing on people, we brought on a new contractor. And so it initially showed itself in a way of you brought on somebody you didn't vet out, and they took advantage

Steve: of you.

Landon: And so learn that was just a singular version of it, but now that's compounded into every person we bring into the fold. Everyone we want to work with, gets vetted out in so many different ways now. I'm not so much of, drinking the Kool Aid.

Jesse: If

Landon: if you tell me you're great, like, okay. Then let's work together. You're great. I'm gonna check it out. Mhmm.

I'm also gonna give you a PI test. I'm also gonna have, like, two or three interviews, see how you do with just us, with the rest of our staff, with the whole group in general. Are you willing to do the job? Are you able to do the job? Are you know?

I kinda ask myself all those things and check more boxes Mhmm. Than I used to even if it's just an assistant. So it it's applied itself now not from just the contractor and to everyone we bring into the circle.

Steve: So your

Jesse: contractor stole a lot of money from us.

Landon: Just disappear.

Steve: It happens. Yeah. So, you're a maverick, and you are Operator. Operator. So, you like people.

Landon: Yes. Right? Even if I don't like you, you don't know that. Yeah.

Steve: And then we were talking earlier, so you like to hire screen a certain way. So I'm an individualist. Okay.

Landon: What does that exactly break down to?

Steve: I'm gonna do whatever I think I'm is best.

Landon: Regardless of if anyone's on board or not.

Steve: Yeah. Right? So, you're a maverick, and so we have a lot of similarities. Okay. The difference is he's more extroverted.

I'm more introverted.

Landon: Oh, I see. Okay.

Steve: And I'm more likely to follow a process where he's like, nah. Let's just reinvent this every single time. Yeah. Right?

Jesse: 100%.

Landon: Who needs a process?

Jesse: Yeah. Process is It's gonna be easy.

Steve: Who has time for processes? Right? So you gotta clean up his mess more often than you have to clean up my mess. But I'm still gonna create messes because of the high a. Right?

I'm just gonna keep going. So as an individualist, where would there be room in your organization? Right? Because it's saying you're using PI.

Landon: Yeah. Yeah. We've just recently started doing that. Oh, you've

Jesse: just recently started doing that. Yeah.

Steve: Got it.

Landon: Yeah. We find a place for you.

Steve: You trying to come over there? Well, let's see how this market goes.

Landon: Alright. Go.

Steve: What book have you gifted more than any other?

Landon: I I will say I need to be better and actually give the book, but I just give the recommendation book. It's, it's who not how.

Jesse: Yeah. Mhmm.

Landon: Sim number one.

Jesse: We read it together, and it was like Yeah. Okay. This is, like, the game changer to business mindset because we get stuck in that. Even even with two of us, it's like, how do we do that? How do we do so many things at one time?

How is this

Landon: the wrong question?

Jesse: You know? And and that paralyzed us. It will legitimately paralyze you thinking to yourself, how do I do everything I need to do to accomplish one goal

Steve: Yeah.

Jesse: Versus who can I utilize to help me? I think being a part of networks and masterminds and bigger groups and collaborations has even, you know, strengthened strengthened that mentality quite a bit. Because for us, Scottsdale, we're thinking, how do we pick up our entire operation and move it to Scottsdale for houses? Right.

Landon: I thought about that for years.

Steve: Right.

Jesse: For, like, a year or two. And it's like, we wanna go here, but, man, we gotta go open a brokerage and find contractors versus who can we find in Scottsdale that's our solid operator that already knows what they're doing that we could add value to.

Landon: Mhmm.

Jesse: And that's what we did. And as soon as we found that person, left the house, made money on it, easy deal.

Steve: Yep. And, again, I go back to if you like that book and you like Gavin the game, highly recommend strategic coach.

Landon: Yeah.

Steve: How about yourself? Which book have you given to more than more than any other?

Jesse: Yeah. Who not how, is the one we talk about just together the most. Outside of that, traction's pretty good. You know? That's for me, I needed to read something like that, obviously, because it's not the way my mind operates.

Steve: Mhmm.

Jesse: So if you're like me and a maverick and, you know, your mind's all over the place and you're not a systems and processes type of person within your own business, traction could kinda bring you back down to earth with it.

Steve: Yep. So, I'm gonna make a few quick announcements. So think about the message you wanna leave all the listeners with.

Landon: Okay.

Steve: Guys, if you got value today, please like, subscribe, share, comment. Help us help more people. I think there were some incredible, incredibly valuable gems dropped throughout today's episode. So help me help more people. And then we do have our event coming up this Friday and Saturday.

Right? Ren and I. Ren's actually in the next room over here. He's done a 100 plus wholesale deals in a month. Right?

We're gonna be talking about how to grow your organization through sales leadership. So do check that out. Go to disruptors.com/salesleadership, and we have part in the disruption tomorrow. Don't forget to check that out. What are some last thoughts you want to leave the listeners with?

Landon: One thing, this stems right from the boot camp, right from what we're in the middle of coaching and educating others on right now is you think you have to do it all on your own. You don't. You think you need to have a bunch of money to get started. You don't. You think you need to have all the skills and the knowledge to get started, and you don't.

Mhmm. You don't have to have everything you think you have to have to actually get started. What you do have to have is somebody who will educate you on exactly that. Yeah. Right.

Also, you

Steve: don't need to get licensed.

Jesse: Yeah. You don't need to get licensed. But I suggest this. We teach that. Yeah.

Stimming off that and kinda piggybacking off that, you have to have the motivation, which if you're listening to this podcast today, you already have a little bit of that motivation. You have that interest to move things forward. You have to execute on the next step. Set a goal and execute that goal. Don't paralyze yourself, you know, overanalyzing, you know, this whole business and what you need to get started.

Seriously, just get started.

Steve: Yeah. And that's key. Absolutely key. If someone wants to find out more about the boot camp again, where do they go?

Landon: Yes. So I think the link's gonna be posted, but you can go to futureflipper.com/bootcamp. That's our landing page. Ton of information on there. You can learn more about what it is, when it is, everything to do with the boot camp.

You can also find out a lot about us, what we teach, what we cover on all of our social media handles. It's all the Vokely brothers.

Steve: Mhmm.

Landon: YouTube, TikTok, Instagram. Those are our big three.

Steve: Vokely cousins doesn't quite

Landon: It doesn't have a ring to it. Ring. It doesn't have a ring.

Steve: Alright. Thank you so much. Thanks for coming on. It was great.

Jesse: Appreciate it. That was fun.

Steve: See you guys all next week.

Jesse: Shout out to Steve train. Jump on the Steve train. We real estate disrupt