Go Full Virtual Wholesaling and 10x your Business in Three Years

Steve Trang: Everybody. Thank you for joining us for today's episode of Real Estate Disruptors. Today, we have Brian Sigmund and Nate Hirschberg with Flip2Quit, and they flew in from Charleston, South Carolina to talk about how they went from 250,000 in 2018 to 2 and a quarter million in 2021. If this is your first time tuning in, I'm Steve Trang, sales trainer. Some of the top wholesalers in the country, and I'm on the mission to create 100 millionaires.

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So please ask your questions for Nate and Brian to answer. You ready?

Brian Sigmund: Let's do it.

Nate Hirschberg: Yeah. Alright.

Steve: Oh, it's my pleasure. So first question is what got you guys into real estate?

Brian: Oh, dude. So like for me, I was always, I grew up in a small town. I was I was working on a farm and, and just had a 300 acre cattle farm. I didn't know anything about real estate or anything like that. And I went into the military.

Steve: Where was this?

Brian: It was in Virginia.

Steve: Okay.

Brian: Yeah. So I found out very quickly farming is not what I wanted to do. Right. But then so I left the military, served, came back, still was like, yeah, there's something more. So I moved to Miami, Florida, went from a two stoplight town in Virginia to Miami, Florida, and it was just like total culture shock.

Nate: Little difference, Pete? Listen, this

Brian: is just a tidbit. But I saw the amount of immense opportunity. I'm like, holy crap, this is tangible. I can get it. And, then ended up doing some sales jobs, got into the fitness industry and then was, doing some sales for Jordan Belfort, The Wolf of Wall Street.

So that was pretty cool. Not like Penny Stocks, anybody watching, I didn't rip anybody off.

Nate: You were the one

Steve: that was like beating the guy down in his kitchen? Yeah. Yeah. It wasn't that sign out.

Brian: Rip anybody off, but it was it was more along the lines of selling, selling, selling, selling, selling sales train platforms. Selling and I had always been interested in flipping homes. I was just like, you know, it's something I can't really do right now, don't be means to. And I remember I connected with somebody who said, Hey man, why don't you wholesale? I'm like, Well, what's that?

And I went home and I Googled wholesaling, went home YouTube, and I think it was like Chris Crowe video or something. I'm like, This is it. This is a ticket. And, ended up trying to wholesale in Miami, was so naive, didn't know anything. I was just calling for sale by owner leagues thinking I was the only one calling those leagues and, was still able to get two deals out of that.

Steve: So this is when you guys started working together in 2018 or is it before that?

Brian: This is before this. Yeah. This is So when was this? 02/2017.

Steve: Yeah. Gotcha. And I've heard it's really interesting, the the title situation you ran into in Miami.

Brian: Yeah. Yeah. It's rather rather interesting. And, dude, it's a it's a cutthroat area down there.

Steve: Yeah, it is.

Brian: I'd have people

Steve: one that makes like television shows about it.

Brian: Yeah, just a little bit, right? Yeah. But like with the wholesaling world, it's like, you know, I'd sign a contract to somebody and I'd put it out on the world wide web for everybody to bid on. I'd have people go there and say, hey, knock on the seller's door. I'll give you $5 more if you sign right now.

Nate: Snake of the deal. Snake of

Brian: the deal. But, learned a lot of valuable mistakes and then moved to Charleston. That's where he and I paired up.

Steve: Alright. So

Brian: Yeah. How

Steve: about you? How'd you get into real estate?

Nate: So that's I don't know. That's that's I'll give you I'll try to keep it, like, two minutes. Long long story short, I wanted to change my net worth. But, basically, I had an e commerce business in Amazon. This is like before the automated stuff.

And, like, I would sell anything. My my primary products were like knockoff cards against humanity. Like, I go on Reddit and like, just just take people's, with card ideas.

Steve: I would have

Nate: them printed in China and sell those. I got a nasty letter from a New York attorney based on like, you know, on behalf of Cards Against Humanity. But I then I was making I was I had a like warehouse space in Ladsden, South Carolina, and I was making kombucha, like, like big vats of it. And I was, it was like 2017, Q3, Q4. And I was listening to BiggerPockets.

I'm like, this is how I'm gonna change my net worth, you know? And, I was on a I was on a K ball team and this, girl's brother was a wholesale in the area. And then she was like, hey, you should you should meet my brother. And then he was like, dude, just send out a mailing. Send out a mailing sent out a mailing list.

It flopped. No leads, no calls, then started texting. This is like back in the day where you could send short codes, Mhmm. Like 16,000 at a time. Yep.

And, one guy was like, yeah, I'll sell you my house, wholesale it at 4526 Piggly Wiggly Drive, Charleston, South Carolina, and, made an eight k on it. And, you know, the attorney handed me a check-in the room. I couldn't believe it. And then this other guy was like, I'll sell you my house. It's like, okay.

What do you want for it? He's like, well, what I what I owe for it. It was $102.05, and I didn't even know anything about comping or anything. The house on the right and left sold 80. So I was like, somehow put the pieces together to get hard money, and that was $20.18.

Yeah. And, yeah, I mean, it's crazy to see what we have now. Like, even looking back and getting the Facebook notifications of two years ago and seeing the flips I was doing and how I was doing them and the contractors we were using, how we were marketing, it's wild.

Steve: Yeah. Oh, and I I haven't shared with you guys. The reason why we're back into Lister Pros, our old studio is we're actually under construction. So when you come back in 2022, you're gonna see a whole new podcast studio. So I'm really excited about that.

So back to you, Nate. You worked with Jordan's company. So I actually had a chance to meet with him at his house,

Nate: a few months ago. Saw that.

Brian: In Beverly or you were

Steve: in Miami? Beverly Hills. It was incredible experience. Yeah. I'm curious.

The skills you learn

Brian: Mhmm.

Steve: I imagine he's teaching you the sales skills that you're selling

Brian: Yeah.

Steve: To other people. That's right. How has that translated to your business?

Brian: I think it I think it gave me a amazing foundation to build upon because a lot of what we do is is phone sales. Right. And I think that accelerated my my growth. And I kinda joke, right? I said, I didn't even know that anybody else was calling for sale by owner leagues, Miami, Florida, one of the most cutthroat markets, and I was still able to get deals there.

And I think a lot of that success over the phone, and getting those good rips of profit margins contracting over the phone comes from the skills that had learned from Jordan, and his program, the straight line training program.

Steve: Yep. And then what compelled you guys to partner up?

Brian: So funny enough, I moved from Miami to Charleston, and I was like, you know what? I don't know the market. I have no idea what the market is like here. I don't know anybody. And, I I know there's a lot of differences between Miami and and Charleston.

So I had went to a Keller Williams office and was working in the retail the retail realm and was working in

Steve: the retail realm. So you became a licensed realtor?

Brian: I did. Yeah. Still am. And I was like, yeah, this is still not really for me. So I was always in for the investment arena.

And then literally one day I followed all the Facebook groups of the investors in the area, and I saw that he had posted that he was looking for an acquisitions manager.

Steve: Got it.

Brian: And I was like, well, I know I can contract deals. And I had seen his name come up a couple of times on on doing deals. I was like, seems like he knows something I don't when it comes to marketing. I was like, you know what, let's swing a bat here and see. Basically, it's like, if I don't perform, whatever, if I do perform, let's let's figure it out.

And then, after kind of the introductory period where we got a good amount of deals on a contract in a short amount of time, we're like, well, how do we keep doing this together instead of dividing and conquering and decided to kind of join voices and become partners at that point.

Steve: So were you basically outsourcing leads to Nate? Or what was that arena?

Nate: No. So, I mean, Charleston's small. Like, Charleston proper. Have you have you seen Charleston?

Steve: Not in a mountain.

Nate: Like on a peninsula. Like, Charleston Charleston proper. Like, it's a panhandle of Florida, basically, but it's just just peninsula. Like, Charleston proper is maybe a 100,000 people. Greater area is probably 400 and half million.

But I no. I posted on the real estate group. I was like, hey. Looking for an acquisitions person if you have any experience. And, you know, like, that group is not big.

I think it's 7,000 people. Yeah. And it's a major one. It's a it's a most visited one in Charleston. You know?

Yeah. It's small. Maybe it's maybe I'm wrong. But maybe at that time, it was, like, 7,000. And, I just posted in there.

He was he was obviously lurking in there. Like, I'd never seen him before. I'm like he's like, yeah. I I, I have some experience. I didn't know.

I I had no idea it was solo solo at that point. So we met up there. There's this restaurant called Home Team Home Team Barbecue. Grabbed a beer there. I can't I didn't even have a CRM.

I come up with a spiral notebook with all the deals scribbled out on it. He's like, what the heck is like, what's going on? And then, I was like, okay. It was right around this time. Like, it was right around the holidays.

And then I went to I was I went to Europe, went to Ireland. My mom's Irish. I came back, and we started, like, January. And we he just came over to the house. I was living in a house with five guys.

Brian: I live I live on my own now,

Nate: but I was, like, just just making ends meet, basically. And he comes over. We're making sales calls. I'm like, okay. This guy obviously knows what he's doing.

Brian: Mhmm.

Nate: We last saw about two hours, and he just went off and got, I think, nine deals in ninety days or something like that. Yeah. It was, like, enough to be, like, okay. Like, this is crazy now. Yeah.

We should work together. Yeah. We should work together. You're good

Steve: at this. We should work together.

Nate: Yeah. So that, like, that was January. Mhmm. And then June was the legacy family team, like, that mastermind.

Steve: Got it. Okay. That

Nate: that's So Maybe getting ahead of itself, but that

Steve: So you guys were working together for a few months?

Nate: This is 2020. Yeah. Right? January 2020.

Steve: Okay. So then let's take a step back here because someone doing, you know, 02/1950 in 2018. So were you guys partnered in 2018 or no?

Nate: No. No. It's just it's just me in 2018. Okay. And then, you know, did less than 10 flips.

And then 2019, like, got relationships with hard money lenders, got, like, a few of the systems. Mhmm. I went to, Investor Fuel in late twenty nineteen, and I was like, okay. This is there's another world out there than sending text messages out of short codes.

Steve: Yeah. And Little eye opening, joining a mastermind?

Nate: Yeah. Like, you don't know, especially being in Charleston. Like, I I didn't even have a Facebook for, like, ten years. I was, like, like, insecure about just who I was, you know? Mhmm.

And I was, like,

Brian: you you

Nate: get there's a bigger world out there, especially when you go into masterminds. Like, oh, there's a bigger world of people doing this specific niche thing at a way higher level. And then, yeah, 2020 is when we linked up, and then 2020 is when we started doing masterminds. And then it Yeah. It, you know, it's just the rest.

Steve: So what were some of the challenges when you guys first partnered up? I mean, it sounds like you guys just got together and everything was easy. I mean, is that is that how

Nate: it was? No. I mean, I guess the biggest thing was, like, you're using, like, sketchy contractors. And, I don't I don't there's never oh, sorry. The

Brian: I don't know that As far as, like, you know, like, I I know, like, partnerships can often be tricky. Mhmm. Right? But we really haven't been in any disagreements that have escalated to anything or or it hasn't been something that we could easily handle. Our biggest challenges, like you've seen, is vendors, contractors, finding out consistently marketing tactics that work for us to have sustainable operation and not these, like, massive months.

And then you're like, dang, I got nothing. So So that was that was probably our biggest struggle.

Nate: Tapping out hard money lenders.

Brian: Yeah. Capital constraints. Yeah.

Steve: And then, so you're saying masterminds kinda open up your eyes

Nate: Yeah.

Steve: To what's available out there. So what were what are some of the big jumps and leaps you made after, you know, joining a mastermind?

Nate: Well, I think I don't know. You don't really want to invest.

Brian: For a

Nate: new person starting, like, spending over 20 k in a mastermind, you're like, what? Like, it's so vague. Like, all the masterminds are out there. It's just like, all I know is I wanna be around these group people, and I'll pay the money

Steve: to do it.

Nate: Right? Yep. And I think people don't realize that, like, what do I get? What do I get? Like, how it's not like, I don't know.

It's just after doing that, it's like, oh, this is now it's like, we'll do something too. Like, now it's like, we've probably spent over 100 ks this year on, on masterminds between the two of us. And What

Steve: was it like the biggest thing like after you, you know, you guys joined InvestorFuel?

Nate: So no, I just did a million dollar meeting with InvestorFuel, but I was like, this is out there. And then that was in, that was in the 2019. And then 2020, you worked together for maybe six months. And then June I remember it specifically because I moved to now I live in DC. I moved there 06/14/2020.

But Tim Bratz was like, hey, I'm gonna make a million dollars in a month. I'm doing this mastermind, And we joined it. And then it was just being in a room where people are doing, like, 10 times what you're doing. And everyone's so humble. Like, no one like, they know they've been around the block a couple of times.

Like, if you're a dick or you're, like, arrogant, like, who wants to work with you, you know? Right. So it's just extremely humbling. It's just, like, we need to go way harder. We, you know, we did commercial deals after that as well.

But, but it was something

Steve: because you guys are doing single family. Right? Yeah. When you guys first partnered up. Mhmm.

And within, like, nine six to nine months, you guys transitioned away from single family?

Nate: No. We we just did one deal, one forty unit that my partner bought us out, and I put that one right into crypto. But

Brian: we had 68 we had 68 units under contract in Kentucky. Mhmm. So it was like a stint where we're like, this is awesome. This is what we wanna do. It's 40 units that we ended up closing on, 68 that went under contract that we never executed on.

But like, damn, I think one of the biggest things about the mastermind, this kind of really backtracking is it really shaped what we do now because we're talking to people that are doing 100, 200, even two fifty flips a year. And I'm like, how are you doing this? How do you have the time to do it? They're like, well, run me through your day. And this is a really powerful conversation I have with a gentleman.

He's like, yeah, everything you're doing is a $4 an hour task. That's how you don't have any time. You need to outsource these tasks, and then you're gonna have time for revenue generating activities. And that was like a light bulb went off. It's like, it seems so simple to hear from somebody.

Steve: Right.

Brian: But when you're in the trenches, you're like, I have to be in control of everything, and I have to be the one executing these documents. It's hard to see, I think.

Steve: And then did you do did you join Tim's Mastermind first or Mark Evans' first? Tim's.

Nate: Tim's. Yeah.

Brian: Okay. So Tim's and then Mark's, and then I'm an Arte Syndicate.

Steve: So how did you originally connect with Tim? Facebook. Facebook.

Nate: Yeah.

Steve: And then you see him, you've you've followed him, he posts like, hey, I'm doing this thing. Would you be interested? And you go through that whole

Nate: Yeah. He is like, he has so I so he moved to Charleston. He's from Cleveland, Ohio. And then he moved to Charleston. And, he went to an event and I was like, standing behind him.

I was sitting behind him. I was like, scared to say hi to him. Like, this is the nicest guy.

Brian: Yeah, he is.

Nate: It was just an awkward room. Like, you know, that you've been in those rooms where everyone's sitting down, no one's talking, everyone's on their phone, and you're like, I'm like, that's Tim, you know, and at that point, I was like, that's Tim. And then I had reached out to him prior to meeting him, prior to me seeing him, and he was like, he just kind of blew me off or whatever. Like, I get it, you're busy. And he's like, is, you know, is Tim.

And I reached out to him. And then he was like, Yeah, let's hop on the let's hop on the phone. And then he's like, Yeah, you need to be doing a million dollars in revenue. You just need to be a fun person. And, like, there's another thing.

And then we we, like, talk for, like, maybe fifteen minutes. I sent him the wire. And then, like, that was maybe in April. And then in June was the first event at his his beach house. And it's like, I mean, there's, you know, the Butler brothers, you had Sean Roque in here.

They, you know, they, in their early thirties, had a $4,000,000 exit in a roofing business. You got, Tiffany Ai, who is a big deal. She's out here. She's she's been here. Chris Kelly has done a ton of flips, like, kills a PPC game.

A bunch of entrepreneurs in the room, you're like, okay. This is like I remember being scared to speak and, like, say what we were doing. Like, is that humbling? And, yeah, just like, it just makes you think bigger. I don't know.

You want to fit into that room, you know? Yeah.

Steve: It forces you to step up. Yes. So what were some of the tactical things you did? Like, you know, you go in here learning from these guys, but you know, learning is not enough, you wouldn't be successful.

Nate: Because

Steve: we're only learning.

Brian: What are

Steve: the things you're applying from from from learning in in Tim's Mastermind?

Brian: It's it's hard to pick just a few because, again, it really, really shaped our business. One of the first things that we did though, was we stopped doing in person seller appointments. Yeah. And that opened up a lot of time because I was spending two, three, four hours a day going to these folks' homes to potentially get an offer, a contract or not. And it was just like, can we do this virtually?

I guess we can, but really then COVID forced us to do that. Yeah. And we found out that we didn't take any dip in our business. It actually accelerated it, because I wasn't spending those hours going to and from the appointments. We were able to then take that time and double down on that positions.

Nate: Yeah, we just went hard. Like, it just forced us to double down on what we were doing.

Brian: And also, we got smarter too. Like, we were just spending beaucoup amounts of dollars in marketing undirected. Mhmm. I had no idea who were we targeting, why we were targeting them, and what the purpose was. And that became much more refined, of who our avatar was as far as the ideal motivated seller that we were going to target.

Nate: Got it. And it and it like, once you invest that much money into yourself, you're like, oh, this person is doing a $2,500 mastermind. Let's go let's do that. Like, oh, that's right. And, like, you just get you just pick up bits and pieces along the way, you know?

It could be a little like our v our cold caller started making offers, you know? I don't even know where we got that from, but, like, that was huge. You know? Putting the CRM, and that was that was huge. We we didn't have a CRM before that event.

So

Brian: Good old new little spreadsheet. It's yeah.

Nate: It's just like it's just like you just pick up little pieces, and then it just compounds with all the other stuff you're doing. So

Steve: Right. So you're the sales guy. So usually the sales guy is the one that's, like, the dreamer, not as great at executing. I'm not saying that's that's not the case here. I'm just saying generally speaking.

Yeah. So who's the visionary? Who's the integrator? Or do you guys both share both responsibilities?

Brian: It's very interesting dynamic, because while I might straddle a little bit on the sales side, I also really enjoy putting operational procedures together and seeing systems improving. Whereas he will be able to look at a spreadsheet and look at data and he's like, Oh, this is amazing. Right? And I'm looking at it, I'm like, I guess so. I don't know.

So definitely the more analytical side, and then I would say I'm definitely more operational structure side, but it balances it out. Mhmm. And I do think that's important to have in a partnership. Otherwise, you always have to be looking for someone to hire to balance that out. Yeah.

Right.

Steve: So you guys are learning these processes. Right? You go into, like, you know, Tim's Mastermind. What was the next evolution or next step in your journey?

Brian: You say commercial?

Nate: Yeah. Going into commercial. Commercial. We started commercial. We acquired a 40 unit for 1.7 in Texas, in Houston, Texas.

But

Steve: you say commercially mean like more like multifamily or talking

Brian: about a

Nate: 40 unit 40 unit property in in Texas, but like, I mean, it didn't work out well. It was like quickly scrapped.

Steve: But why?

Nate: It's really hard to manage a property out of state. And we're, you know, you find out when you peel back curtains on, like, heavy operators that are managing properties out of state, that's like, it's not what it seems, you know, it's not it's not all roses when you're managing properties out of state. Like, it just especially properties that you can get now for a discount. Mhmm. Like, that was as is, like, 2.22 or three that we got for 1.7.

So there's a nice spread there. But it's just, you know, it's just difficult. I mean, for for us, we I mean, what was difficult about it? Property managers, managing the property, managing the tenants. If you don't

Brian: have a if you don't have a back end team with the infrastructure, I mean, notoriously, you get a big target on your back. As an out of state investor, they're like, okay, well, you know, they're not on the property every day, and we would make site visits. Like, he went down there a handful of times. I actually went, they didn't know me, so I went and actually applied for rent. And I'm like,

Nate: man, and You were the secret shopper.

Brian: I did the secret shopper route, applied for rent, and then walked the properties. But, it was difficult for sure. I wouldn't say I would, for any of the viewers watching, I would let it deter you from doing that. Just know that you make sure you have your i's dotted and your t's crossed before you get the proper management in place.

Nate: We would certainly invest in a deal managed by someone with boots on the ground that's, like, local and and we're out of state in it. Because, I mean, that's the depreciation, the pay down, like, it that that's definitely the route to go multifamily, when you have all this active income from flips and wholetails and all this. But, like, being the operator of that is not something either us wanna do.

Brian: And

Nate: that was very apparent. But you have to do things to realize that you don't wanna do them. Right? Right. And that's that was the silver lining.

And that is, like, okay, we're not we're gonna double down single family more and not be calling these people in like, all these flyover states, you know?

Steve: So so you did. I mean, you said you scrape you scrape it. So like, what will you guys exit it? Like breakeven? What did

Brian: you do?

Nate: So I put in 57 we put in 57 k. Mhmm. And then my buddy who had 210 k in chat, Michael Burns, he was like, dude, like, I've I've got a lot in this. And then the other partner in it was the sponsored it and had the, like, the bandit the bank connection. He's like, let's just I'll buy you out for a 100 k.

So so 43 k. But, I mean, it's it was whatever because, you know, that's beside the point. It was, like, bittersweet because it was, like, we thought we were gonna go in this realm with, like, operators with several 100 units.

Brian: And it's

Nate: like, hey, man. Here's a 100 k. Thanks for your time.

Steve: Right. So

Nate: do they still own it? Yeah.

Steve: They did.

Brian: Yeah. It was also right at the time that our education and joint ventureship stuff started to really ramp up. So time allocation wise, it was just, like, always being put on the back burner. Right. The multifamily was.

Steve: It was not a priority.

Brian: Yeah. So it was And then

Steve: you guys had another opportunity for multifamily, and you're saying you guys started it but you

Nate: know you closed on it. Yeah. You lost like 36 ks or something on that. That sucked.

Steve: Yeah. So let's talk about it because I think it's something that I

Brian: don't wanna talk about. It's a traumatizing task dude.

Steve: Yeah. But this is like where people get to learn, right? Like, we're always talking about successes. Yeah. It's not a toxic lessons learned.

Brian: It was a real It was so fun. I remember It's a

Nate: member of Kentucky.

Brian: He called me. He's like, Hey, we have this lead. Seller's got somebody coming on a Friday that wants to put a contract in. They're gonna do a 10:31 exchange. This is a Tuesday.

And this is about 08:00 at night that he called in. And he's like, What if we go there tomorrow? And we go and do the site visit and we put a contract down. I'm like, okay. That's cool.

So I start immediately packing my bags. I hop in the car at, like, 03:30 at the next drive drive there. He flies there. We go there the next day. Seller probably thinks we're crazy.

Steve: Yeah.

Brian: And then we're negotiating the contract at 10PM that night in the hotel lobby where we're staying, and then leaving there with a wrap five purchase agreement. So it started off really accelerated.

Steve: Yeah. That's a great start.

Brian: Yeah. Yeah.

Nate: It was actually it was actually probably a better deal, because it was sixty eight one bedroom units in, like, it was right outside Fort Rack Fort Fort Knox Fort Knox. Yep. In Radcliffe, Kentucky. And, like, it would have worked, and, basically so I put down 1%, which was 18. We got it under contract 1.8.

And then there's another capital group. I don't even mention them. But basically, it was a broker that just put me through the wringer. Like, he he promised he over delivered, basically. And, like, I put down another 18 k to get them to underwrite it.

And, like, it was all ready to go. And it was, like, all I had liquid at that time, which was, like, I don't know, a quart, like, two forty or something. And then I was, like, I don't wanna compound this 40 unit issue that's happening, compound it to 68. And then I just backed out and lost $40.36 grand. Yeah.

So

Steve: it was potentially a good deal?

Nate: It was a good deal in the sense where needed to there is sweat equity in there.

Steve: Sure.

Brian: It was

Nate: a good deal if you're willing if you're willing to do that when we were out of state and this this problem in Texas was happening. So we're like, I don't know. There's other opportunities I want that we wanted to focus on and, like, that's that's I just

Steve: Yeah. Well, that's the reason why I'm asking this is that there is a due diligence element.

Brian: Right? Exactly. And so There were some underlying things too. There were some, like, concerns of foundation issues and retaining wall issues that were gonna be larger and larger ticket items.

Steve: Yeah. Well, but, like, a lot of people think, oh, I was gonna do single family until I do multifamily.

Nate: Yeah.

Steve: Right? And I think that's a great idea if that's the direction you wanna go. But it's not like it's just like this simple, oh, I'm gonna upgrade.

Nate: No. And I'm

Steve: gonna go Yeah. There's there's a giant learning curve, which Yeah. You guys realize a 100%.

Nate: Yeah. Yeah. Yeah. And I mean, we we we're just now building a rental portfolio now. We just worked out the details this morning, actually, with a really good operator in Columbia, partner John Evans.

But, Yeah. I mean, it's just again, you have to do what you don't you have to do something and realize you don't wanna do it and then know when to to not do it anymore or, like, just realign and, like, focus with great operators. But we don't wanna be operators of multifamily assets because they're all c class assets too. It's not like these are glamorous places. Yeah.

Steve: So, alright. So you, you know, you you brush it off,

Brian: brush it off,

Steve: like this multifamily thing. Oh, yeah. This isn't for us. Yeah. What happens after that?

Brian: So around the same time, we had been posting, kind of what we were doing, with no real direct intent.

Nate: By the way, we never stopped single family. We never stopped doing single family flips in the whole whole house. We still had

Brian: our own operation. We just, part of the mastermind was a Facebook live challenge every day for thirty days. And we just kept doing that. And what happened was, is we had no intent. We didn't know what we were doing.

We didn't have anything to sell. We didn't have any product offer. We were simply just sharing what we were doing, and it really got a lot of eyeballs on us. And then all of a sudden, it was one day people were in our inboxes every day. Hey, do you have a coaching program?

Do you have a joint venture program? How do you teach people how to do this?

Nate: So

Brian: basically out of demand, we said, Hey, we're gonna start, kind of a coaching slash JV program. And we had made that announcement, so that's what really catapulted after that, was that whole sound

Nate: of the film. This video of him on a beach in the Caribbean

Brian: In Saint Martin.

Nate: In Saint Martin. We were closing a deal in Tennessee. Mhmm. I live in Washington, DC. He's in Saint Martin.

And, it did really well, engagement wise.

Steve: Well, naturally. Naturally. Right? Yeah. Yeah.

So alright. So then you guys are, still doing single family. So then

Nate: Still doing single family. Yeah.

Steve: And you have this joint venture, program. So what is that program?

Brian: Essentially, it's folks that, it's it's interesting. There's a couple of different people in there. We have people that have never done a deal before, couldn't even tell you how to do a flip from people that are doing, you know, they could do on their own 10 to 12 deals a year very easily, but they partner with us and we take care of, heading up their marketing, making sure that their data is dialed in, putting together cold calling platforms. And then it doesn't stop there. It's more continual advisory through the process.

We even hop on phone calls with the folks to make sure that we can lock up the deals at a good price. We're helping on the disposition side. Just today, we actually closed together with one of our partners, Tina in Florida, on two deals in Florida. So sometimes we're actually invested into the deals as well. And, we meet two times a week and just make sure that everyone is getting their goals.

And we have, we have folks in there with a variety of goals. One, one gentleman, John Evans, he shout out John. He, he, he has a million dollar goal and he's on track to do that. Yeah. We have other folks that, they say, hey, I wanna do six to 12 deals a year, and that's fine because we cater the cater to the individual.

Mhmm.

Steve: So you guys have a custom plan for everyone that you drew right here with?

Brian: Yeah. That's right. Yeah.

Nate: It's a market custom plan. So now that so it went from three initially, now it's up to eight? Nine. Nine.

Brian: Yeah. With 11 people on a waiting list.

Nate: And then we we added a liaison now that started in the first of the year. Mhmm. So I don't know. It's I mean, it's you know, I I traveled here with the documents that need to be notarized, so I didn't get them till 9PM. Whatever.

What even day is it? But, is it Wednesday? I I got the documents late, Monday night, traveled with them, how to get notarized on in Tempe. Mhmm. And then, of course, they send a FedEx shipping label.

They don't have notaries there. But, yeah, I mean, you know, we have we have Tina in South Florida. We have John in Columbia, South Carolina. We got people, Vincent Brothers in in Cleveland.

Brian: People Oklahoma City.

Nate: Oklahoma City. And, we're still doing our own deals too. Right? So, you know, conservative so everyone has, you know, everyone spends about 2 to 3 k on marketing a month. Mhmm.

And the three that I've been with the six month are all over 100 k in revenue. John's, I think, is pushing 300 k?

Brian: Not 300.

Nate: Yeah. But, yeah. I mean, it's it's great because it allows us to scale, get a back end portion of the deal. It allows them to scale, which, you know, they some people have never done a deal before, or they're just completely confused of how to even structure a purchase agreement, which is fine. That's why we're there.

And, conservatively, I mean, if if each of them do one deal, let's say we grow it to 12, if each of them do one deal a month, I mean, it's a 140 deals a year.

Steve: Yeah. What, it sounds like, anybody is interested in joint venture. It's someone that you may be interested. You know, you have to wait list and everything.

Brian: That's right.

Steve: Are you are you working people that have never done a deal before?

Brian: We will. Yeah. Okay. Assuming that they're ready, willing, and able

Nate: to do this.

Steve: I need to find that because that's one of the greatest challenges where people reach out all the time. Like, I wanna get started, I wanna get started. It's like, for me, I've always just tell them to start. Yeah. Yeah.

So So

Nate: how do

Steve: you deal with that?

Brian: Weed out I don't wanna call them tire kickers, Mhmm. But to weed out the people that we know are gonna be really good operators and very take it seriously is we do charge an upfront fee. Mhmm.

Nate: So that

Brian: way they're invested, they have skin in the game, and they're like, okay, how do we get deals so I can get my my, capital back? Mhmm. Yeah. But then mutually, we're aligned with best interest too because it's not just a upfront fee, there's a deal split as well, which, by the way, a line share that goes to the operator. Mhmm.

Steve: We

Brian: take a very small advisory share on the back because we wanna make sure they are very successful. Yeah. So I'd say between that and also we do a lot of interviews. We we meet with the individual. It's not

Nate: like So screening them.

Brian: Yeah. We're not like, here's a payment link, Steve, you know, fill it out. And, when the wire kicks, we're good. Yeah. We very we we do have a waiting list for a reason.

It's not like a marketing ploy. We wanna make sure that we can onboard this new operations manager and make sure they have a lot of support. And then when we do bring new people on, we're only gonna take on three new people at a time and make sure they're very successful.

Steve: Sounds kinda similar to what I talked to Matt Larson about some time ago. This is his it was nationwide virtual wholesaling.

Brian: Yeah. It's some similarities, I would say. Matt Larson.

Steve: Yeah. Okay. Cool. So then this is what helped you guys scale to this year over a couple million.

Nate: Yeah.

Steve: Gotcha. Okay. So what were some of because this is not something that, is exclusive, right? Like you guys invent this.

Nate: Yeah. Sure. So go ahead. Sorry. A lot of that, though, is there's only been, like, three that have closed, like, this year.

Steve: So that

Nate: that 2.2 is not with the start fee. It's just our our operation mainly.

Steve: Got it. Yeah.

Brian: Yeah. Okay. So,

Steve: then let's let's start with you guys, and we'll talk about the JV thing. So right right now with you guys, doing 2,000,000, I mean, that's not a small number.

Nate: Yeah.

Steve: So what were some of the keys to help you guys hit 2,000,000 for 2021?

Nate: Virtual. Virtual. Yeah. I mean, we expanded in Nashville. We did six deals in Nashville that we're doing the math on the way here.

It was, like, well over $400 in six deals. Now some of that was Opendoor on on a couple of them.

Steve: Yeah.

Nate: That probably paid more than they should have. But, yeah, it's just, I think going back and that's, again, investing ourselves. We went to an event, Chris Kelly, and we we defined an avatar. Mhmm. And then we started looking at, and and we teach this.

We started looking at ZIP codes based on, days on market, median sales price, and number of homes sold. Mhmm. And we just really focus on those areas and just cold call them to oblivion, and just focus on not losing money on flips and focus on higher dollar flips. When I say flips, these are mainly wholetails. Mhmm.

So that really helped the margin as well.

Steve: Mhmm. As you prefer to exit strategies, wholetail? Yeah.

Brian: Typically. Yeah. Yeah. We are we are doing a few flips, here and there, but, I mean, they're so easy. You know, lipstick on a pig, move it out and then, you know, leave it, let somebody else take it to the finish line.

But yeah, virtual for sure. And then also getting smarter with our operations of learning from the stakes and saying, Hey, how can we put a policy or a structure in place to not do this again? And, you know, they're expensive lessons to learn. You don't want to repeat them over and over again. And that boosted our profitability per deal up.

Steve: What are some of those expensive lessons that you learned?

Brian: Four point inspections. Yeah. So, we used to we used to never even do inspections. Like I'd I'd walk out, I'd look at the property, I'd meet with the seller, and it looks okay. Yeah.

And then like a few times, dollars 37,000 foundation problems

Nate: come about, or we have to

Brian: replace $6,500 worth of ductwork under the house. Those things start to sting pretty badly when you don't have them allocated. So let's say for sure the inspection period and leveraging contacts in order to make sure that we can get accurate information, not just taking things at face value.

Steve: Mhmm.

Brian: Actually doing a heavier due diligence on the acquisitions part was probably really, really paramount. So not losing money. We were

Nate: talking about the humidity before the start of the show. Everything because there's there's flood zones too, in Charleston. It's like everything's on crawl space. So it's really easy for, you know, crawl you know?

Brian: Yeah. I

Steve: know crawl spaces. We don't really have them here.

Brian: Yeah. Yeah. Yeah. Yeah. About.

Nate: Well, out of Airbnb, we see every all everyone's HVACs on the roof. Like, are people like stealing HVACs around here? Or I was like, oh, no. Everything's on slab. Maybe it's a bit of both.

I don't know. But the crawl spaces, that can get expensive quick because they got wood rot. You know, wood rot that hits the peers is just it's not cool.

Brian: Also, another thing I would say is, creating a disposition system Mhmm. That you know what timelines are, you know what deadlines, you know what has been done and not been done. So that way you don't fumble closings, you don't miss documents, and then you, you know, either lose a deal because you go out of contract or or something happens like that.

Nate: Yeah.

Brian: So it's getting more organized.

Steve: So what were some of the biggest challenges going national?

Brian: Well, upstairs

Steve: because you went from not having CRM

Nate: Yeah.

Steve: To doing all the $4 an hour work to going national. Those are two huge, you know, different very, very different worlds.

Brian: Jeez. I mean, I think recognizing the markets situation. Like the first market that we did, it was funny as this we're like, let's go to Tampa, Florida.

Nate: Oh, yeah.

Brian: And, like, one of the most competitive markets. Right? And we go out

Steve: there. That's the other guru Mecca.

Nate: You go

Steve: next to Tampa.

Brian: We get our teeth kicked in. Yeah. Nothing happens. Well, that sucks. So but we didn't let it deter us.

We picked a different market, and then we started getting some results from that. But then it forced us to also get creative with, well, how do we gather this information? I can't just drive down the road like I can in Charleston and put eyes on this property. So then it forced us to get creative to then implement those virtual disposition and acquisition strategies that we now share with our partners, and, and we, you know, duplicated a couple of times in different markets that work well.

Nate: Yeah. That's that's definitely and these things seem common to us, and maybe they are correct. Like, stop me if I stop me while I'm telling you anything you already know. But, like, going into Facebook groups in different markets and being, like, hey. Is there any hungry, young, real estate investor friendly realtors out there?

Brian: Mhmm.

Nate: And then watch your inbox get inundated and the post get inundated. They'll, like, line up the cleaners for you, they'll take the pictures for you. I was just on the phone with him on the on the court. He's like, hey, the closings gave me, they'll, like, handle the TC for you. Mhmm.

And the this is all done for $1,500 a listing. It's not the two and a half percent. It's a flat flat fee. You know? We do this we do this in every market we enter.

It's like we we we rely on them to comp too. Like, we'll get a property in contract, like, hey, what do you think it's sell for? Mhmm. And that that's definitely a trick tip that that if you're just getting into this, it's really, really helped us.

Steve: Yeah. I mean, I was that young hungry realtor when I started. Right?

Nate: Yeah. Yeah.

Steve: Right? 2007. They're like, I'm writing once, like, 80 offers a day, you know, for wholesalers. Mhmm. I didn't know what I was doing.

Yeah.

Brian: Yeah. But Volume game. Right.

Steve: I was

Nate: trying to get started. It was like, and I was so excited.

Brian: Like, I

Steve: would get an offer accepted. Right?

Nate: Yeah. Yeah.

Steve: I think they were more excited. Or they were I was super excited initially. Then you get to a point, like, okay, this this is that was not gonna be used in my time. But when you're starting, I was that young. Yeah.

Girls here.

Brian: Yeah.

Nate: It gets you going. I mean, you know, whether people usually, it's like bigger teams that have younger people on their team that'll reach out. Mhmm. But, I mean, it's just a super efficient way of doing it, and, like, they're, like, really helpful. And they I mean, we got this guy three deals in Tennessee.

It was three closings and he listed all three of them. So it was $40,100 $4,500 and he's lined up, like, everything.

Steve: Right.

Nate: Super great to work with. And guess what? We're gonna any other deal we get in Nashville, he's getting them, you know? So I don't know. Maybe it's just a supplement to what they're already doing, but it's just that's really helped too.

It's relying on other people, leveraging them and letting them not being like secret agents and letting them know, hey, we're investing in this area. We're getting deals in this area. Do you wanna list them in return? Can you, like, really help us out with all these things?

Brian: Yeah.

Steve: So, again, you're you're saying earlier, your predominant exit strategy is the hotel. Yeah. So are you guys dealing with a national lender?

Nate: How

Steve: are you guys lining up the financing?

Nate: So shout out Rehab Wallet, shout out to Selectory Group. They are and we GP on our JV partners deals too. Mhmm. And we put our own capital into it too.

Steve: So six step back.

Nate: I don't even know guarantor.

Brian: G? Personal guarantor.

Nate: PG. PG.

Brian: Yeah. What's it'll be personal guarantor. We'll, but so they'll lend in most of the states that we're in.

Nate: Yeah.

Brian: And if they won't, as long as they can see volume, they'll lend there. But then another one that we'll use if if we find a deal outside of those areas, we've used Lending Home before. Yeah. But the cool thing is It's Kiavi now. Yeah.

Right? Right?

Steve: Kiavi now.

Nate: Kiavi. I don't think they changed it. Oh, they they rebranded.

Steve: Yeah. It's very confusing.

Nate: Well, we this our lenders, I mean, and I don't even know. We probably shouldn't say it on last national news, but I mean, like, they were able to hold the back end of our payments to be to see closing. So we're not getting the interest isn't getting bled out when we have, you know, six attorneys going on

Steve: at a

Nate: time. Right. And then So you're talking about

Steve: deferred payments? Mhmm. Deferred payments

Nate: of the interest. Yeah. It's like lending

Steve: Well, I mean but it's something that's important, right, for everyone listening to it. Oh, yeah. They get they get they they you can bleed out the the money. Right?

Brian: If you're

Steve: not Super making that payment. And that's one of the reasons why so many flippers struggle. It's like they're making payments every single month.

Nate: Yeah. Super quick.

Steve: You revenue is coming in periodically, but output is going out every single month. So, you know, for you guys watching, like, definitely having set up deferred payments makes life a lot easier.

Nate: Yeah. And it's not like and and but, hey, that took, like, 10, you know, 10 deals with them or 20 maybe even more. Right. So then they're like, okay, this person pays on time and closes.

Brian: Mhmm.

Nate: So, you know, we've never been defaulted on yet.

Steve: That's awesome.

Brian: But

Nate: but no, seriously, I mean, that I mean, and we'll we'll explain that to our JV JV partners who are struggling. It's like, they're like, what? Like, John the other day was like, what? You get they defer payments at the end? Like, yeah.

Steve: Yeah. So I think there's a lot of things that you guys know, right, that you guys aren't, necessarily, maybe forgotten.

Nate: Yeah. It

Steve: was a discovery.

Brian: Yeah. No, I would agree with that,

Nate: for sure.

Steve: Yeah. Okay. So then one of the things you guys talking about is you really focus on quality and not quantity.

Nate: Yes. Yes.

Steve: Can you talk about that?

Nate: I mean, just doing, you know, in a market where you do, I guess, like, 384 k. Close close 400 k and 6 deals. Mhmm. Why are we losing money on deals? Why are we why are we making 5 k on a deal?

Like, why like, I don't know who made it cool to do a 100 deals in a year. It is cool, though. Get me wrong. But, like, what if you did 20 and they paid out twice what that a 100 paid out?

Steve: Right. Larger margins.

Nate: Larger margins, less intensive work, less headache, more peace of mind, and you're not, like, consistently chasing deals, you know? Like, I have to hit this volume metric. It's like, no. I should hit this profitability.

Brian: A big part of our stuff too is we have a lifestyle component to it as well, where we have a particular lifestyle that we wanna live and we wanna see our partners live too, which is having an abundance of time, having an abundance of money, and being able to do what you want when you want your time and on your terms. So with that, it was kind of a no brainer for us. Like, alright. Well, let's just do, you know, quality over that quantity piece. Yeah.

And then you don't have those fires that are up to take so much brain damage and attention to deal with that problem, of a $5,000 close or something like that.

Steve: So I think the mindset challenge, right, to go from quality to quality is is is a hurdle. But once you overcome that hurdle

Brian: Yeah.

Steve: Is it not easier said than done? Like, how do you how do you focus on quality? Because who doesn't want quality? You need

Nate: you need I think the answer to that question, you need a little bit of capital to be like, like, let me let me chill out on this, like, dog chase tail game. And, like, be like, okay, like

Steve: So having reserves.

Nate: Having reserves. Yeah. To be like, okay. I I have a step I have a second to, like, makes make things make sense and, like, focus on specific avatar and say no to deals that Alright. In the past, it would have originally taken because, you put food on

Brian: the table. The funny thing is too, if if you say no to a deal, sometimes that thing will come back around, and then the quality of it has actually increased by a couple tenfold. Mhmm. And now you you're in a much better position. So it's it's, again, about being logical and non emotional Mhmm.

In this whole arena. It's a very easy industry to get emotional in.

Steve: Well, to get caught up in the game and the chase. And what do you say to someone that's like because we we see this, you know, these guys that are flipping this many houses to keep their crew.

Brian: Yeah.

Steve: Right? And so for them, it's hard for them to say quality and that quantity because if they don't do enough flips, the crew leaves, and it's really hard to attract good people.

Brian: It's extremely difficult. So what do you

Steve: say to that guy?

Brian: You know, I think that comes back to your your vision of what you want. If you've built it up to that level where you have that abundance of crew, that abundance of deal flow, you probably didn't accidentally fall into that. And then if you ever want to step back, I would say, hire somebody that can keep that level of operation going. If you wanna step back, that way your crew, your employees, your infrastructure doesn't suffer. But if you've gotten to that point, it probably hasn't happened by accident.

You had you had a very intentional, purpose to get there.

Steve: So are you guys with doing fewer deals paying a premium on your contractors?

Brian: I'd say not necessarily a premium. We still have we still have enough work to keep our crew busy, and our crew is relatively lean because a lot of what we do at state is kind of, again, using real connections. Hey, who do you know that can do paint? And they're like, I got this guy that's in between jobs, and

Nate: he can

Brian: do this. Or we don't do anything to the property, and we sell it to an institutional buyer like Open Door Yeah. Or Offerpad.

Steve: Yeah. I don't I don't

Nate: think we've put more than 10 k in any out of state flips, any wholetails. Got it. It's always paint, floor patch. Yeah. Listed.

Trash it out.

Steve: Yeah. So, obviously, we know we're all well aware of, like, Zillow, you know, took a giant dump on itself. What,

Brian: turns out their algorithm is just so hot.

Steve: Yeah. So any concerns with you guys' model, right, going national and wholetailing and selling? Yeah. I virus.

Nate: They they've I mean, they they've we underwrite all our deals on on on market comps, MLS comps. So, like, we don't underwrite our deals. We don't use them as an exit strategy to underwrite. The actually, the guys that, Total Seller Strategy, Kyle Jones and Jeff Johnson, on a boat in QS at the mastermind, right, mastermind event, people knowing things, they were doing like because you get fees as a realtor, and they're they they they're licensed realtors in Atlanta. So they were getting, like they're doing 10 k deals with them, and then they're like, woah.

Let's, after this little thing, they're like, let's stop doing these really tiny margin deals with iBuyers. Mhmm. But we always underwrote our deals on the MLS. So it's happened on this three package. It's happened probably four times where they're like, this is what you're getting, then they can give us a final offer, and it's like $40.50 k off it.

Or, like, where did they where did this come from? They're like, say, like, we're a publicly traded company. We have to do everything above board. We use the top line contractors. Like, that's fine.

We're gonna list on the market, you know, and make more than they were willing to pay.

Steve: So you're hedging your bets by having where if they don't perform on it, you can still

Nate: Yeah.

Steve: List on MLS.

Nate: Yeah. There's just it's just sweetness to the pot if they buy it because their transactions stay two weeks. Mhmm. But we still underwrite with the MLS in mind.

Brian: And we we also underwrite based on, hey, what is the absolute worst case scenario? We need to keep this as a rental.

Nate: Yeah.

Brian: And we're going through this right now. And we'll it's not about looking at, okay, this is a $30 rip on flip if everything goes right.

Nate: Yeah.

Brian: If it doesn't, we'll assume cash flow.

Steve: Yeah.

Brian: And we're going through that right now. We're actually getting a tenant placed, hopefully, if you can just cross today or tomorrow. Mhmm. And do a flip that just didn't go the way we thought as far as desirability. Mhmm.

And, we're gonna park a tenant in there and just keep it.

Nate: Yeah. And that's another thing with the capital reserve is, like, now we can look at things with a different lens.

Brian: Right. Like, cash

Steve: out need the revenue.

Nate: Yeah. Yeah. Cash out refi. What's that? You know?

That's we underwrote a deal this morning. It was, like, it's under ARV is $1.30, under contract for 80. Mhmm. And the lender's like, yeah. I could give you $1.00 $1.04.

We were gonna make, I don't know, 36 k on the flip. We're like, woah. Let's keep that. Cash flow 1,200 a month on a payment of 700. Like, why not why not keep and then get 20 k on the refi.

So Right. But this is this we're now just entering that part of our real estate entrepreneurial journey, I

Steve: guess. Right.

Brian: Everything else in the past, it's like money in? Marketing. Money in marketing. Right.

Steve: So, and then what are some of the biggest lessons you learned in scaling virtually? Or I'm sorry, not actually virtually, with with with the partners nationally?

Brian: With the partners is, and we're kind of going through this right now, is having infrastructure internally where he and I aren't bottlenecks. If we can't get back to the partners right away, and that's for for that reason is why we were like, hey, let's press pause. We're sure we have people who wanna join. Let's press pause. Let's build out the infrastructure where people can have, you know, organizational procedures and policies that they can go to and figure out what to do without having to pick up the phone and call.

Mhmm. Because we don't we want them to be super successful and us, again, not be their own bottleneck

Steve: Yeah.

Brian: There. So I'd I'd say we're going through that right now, but then, you know, also just being, you know, being in the right markets. We've had partners that are like, I wanna go into Dallas, Fort Worth, Texas. I might not recommend that, but we'll try it. And then within two weeks, it was very clear.

Nate: I I I mean, it's like anyone's capital. Right? They're still using our lenders and helping us using our terms with us. Like, How are, like, how are you guys able to do this? That was what I was doing.

That was what we were doing two years ago. We were just making ends meet, you know? And they're, you know, we're signing on loans and, like, helping them with our terms and, you know, they're but they're getting they're they're in right now working with lenders that are making them pay monthly. Right? And not and not lending a 100%.

So it's like they're they're bleeding right now, but it's just part of the game. Right? So I think that is a challenge. It's a capital constraint. Like, let's go.

Let let let let's keep going, but then we forget kinda, like, they're making all these payments monthly and

Brian: Alright.

Nate: They don't have a bunch of deals going on yet. So

Steve: you're saying Dallas. Let's maybe not go into Dallas. Yeah. It's it's probably not. Yeah.

What's what's wrong with Dallas? Because there's a there's a lot of people in Dallas that are watching. So like, what's What's the deal with Dallas?

Brian: So the deal with Dallas was, there's nothing wrong with it. It's an amazing market. There's immense amount of opportunity leads. And, you know, fact is there's tons of jobs. And whether there's jobs, there's people and there's affordable housing.

However, these individuals wanted to keep their budget. And what we had said is, hey, let's extract $2,000 a month of marketing.

Steve: Very far.

Brian: It's not going to do anything in Dallas. Right? So that's where you have to recognize, if I wanna go into these major metropolitan cities, I've just gotta be willing to pay to play. Yeah. This is our boat.

Pay to play space.

Steve: Yeah. Yeah.

Nate: I mean, we know we know people that we know a guy we because we have a deal room too, like a subscription based. We meet with them four times a month, but there's a guy, Big John, in there. He he's done, daisy chain not daisy chain, but there's a fire damaged property they made $50 on. It was from a wholesaler that was sent to him in Dallas, and he made $50.10. I don't know the exact mechanics of the deal, but there's there's people that make money and do deals in Dallas.

We're not we're not saying

Steve: No. I don't question that. The question is, like, you know, do you wanna start in Dallas? Just like, you know, do you wanna start in Phoenix?

Nate: Right. Right.

Steve: Or Tampa. Right. Like, there are maybe other markets I would consider first.

Nate: Find other markets. Circumvented him to Oklahoma City. He's getting deals there. Yeah.

Steve: Yeah. Alright. So, let's see what other questions we have here. Guys, please, post your questions in here. So, Johnny Cadenia on YouTube, how do you sign up for the JV program?

Brian: Good question.

Nate: You can Great question.

Brian: You can send in what we've been doing so far is if you wanna send an email with a quick synopsis of who you are, where you're located at, what your real estate goals are, and a bit about your background to, nateustpropertiesllc dot com and brianustpropertiesllc dot com. We will hop on a call with you and get you added to the waiting list and see if it's mutually a good fit.

Nate: Or or social media. I need social media. Nate Hirschberg, Brian Sigman on Facebook.

Steve: So Got it. And then, on YouTube, another question is, how do you go from broken humble to being rich and still humble? That's an interesting question.

Nate: That is a really good question. Man, they're good. I don't know. I mean, for for me, I think that, you gotta be in bigger rooms. Like, there you gotta be in rooms where you're, like, holy cow, that guy just exited a company for $6,000,000.

Like, what what my 2,000,000 in revenue? Like, what? How can I even compete with that? You know? And it's like, there's always gonna be someone bigger than you.

So I think I think you have to still be, like, proud of what you've accomplished. But I think being in bigger rooms and, like, you know, like, there's this there's more out there, you know?

Brian: Doctor. Yeah. I mean, that's an amazing question. I would say it goes back to what your goal is of generating wealth. If you have the goal of generating wealth for your own self and you're not wanting to give back or anything like that, humbleness is going to fall off pretty quickly.

Yeah. Really fast. My goal is to give back in massive capacities and help out a lot of people along the way. I can't do that unless I have wealth.

Steve: Doctor. How much can I give back? Doctor.

Brian: As much as I can. As much as I can. So, so I'm putting this out there and we speak it into existence. One of my goals here is I want to give a house away a year. I want to give one house away a year to somebody in need.

I'm a veteran, so that kind of holds a place in my heart, but it doesn't have to be veterans, it could be somebody, just somebody down on their luck. But I'm the big believer, even before we were making really good income, I always try to give 10%.

Steve: Yeah.

Brian: You know? Because I think that if you're I I do believe if you don't do that when you really shouldn't or you really it's really hard to, you're definitely not gonna do it when you can. Absolutely.

Nate: You got you got eleven more days in a year or what? Sixteen more days a year. Yeah.

Steve: I know. I know. Sorry. Right. But I think, you know, to Brian's point though, I think the going to rooms were small.

I went to the IMN conference a couple of weeks ago. Yeah. And man, like, I felt so freaking poor. Right. I was talking about on stage.

Yeah, we're doing 1,500 houses a month. Yeah. You know, these are hedge funds, you know, backed by billions and billions of dollars with, you know, BlackRock and all that stuff. But it's like, man, like, I am totally insignificant. It feels great.

Brian: Yeah. Yeah. No one

Nate: wants to be around someone that's a jerk anyway, too.

Steve: Yeah. That's true. Yeah. And then Ford Smith on YouTube, do you guys have any masterminds? He's one of them always.

Any, any, any masterminds coming up?

Brian: We do. So, actually we part of our educational business is we partner with actually Fort, and some other really cooperators in the area. So we're going to be hosting a three day, exclusive retreat in Tulum, Mexico. We rented a 13 bedroom, 15 bath house on the beach.

Nate: 1,500 square foot pool.

Brian: 1,500 square foot pool private chef.

Steve: And we're gonna

Brian: be there for three days. Yeah. It's gonna be awesome. It's high level network. It's a more of a laid back atmosphere.

Mhmm. I always say it kind of embodies a little bit of high level networking, good relationship building, mixed with a bit of fun as well.

Steve: Yeah. So those are really hot spots. Really interesting. So many people like to go to the

Brian: April, I believe it is.

Nate: April.

Brian: Yeah. Yeah. We have a couple of spots off. I think we have five or six spots off. Yeah.

Nate: No. Really sweet.

Steve: Alright. So, trying to think of some other questions. So what is it that keeps you guys going? Because you guys seem to be, you know, hitting a pretty good rhythm right now.

Nate: Yeah.

Steve: It's really easy to take your foot off the gas.

Brian: Mhmm.

Nate: Yeah. I mean, again, to to know what Nate said earlier is the lifestyle. Right? Like, it's the middle of the week. We're in Arizona, and I don't even know we're gonna probably do a hike after this.

I don't know. See what we're in the mood for.

Brian: It's

Steve: good weather right now. Now.

Nate: It's great weather. I like to, you know, skydive. He likes to scuba dive. I like to scuba dive.

Steve: He's gonna go down the Eloy.

Nate: That's where I went yesterday. They didn't let me jump because I had to I had to rent their gear. But, yeah. I mean, it's like we we were talking last night. He did.

He has six trips in 2022, and we're still in 2021 planned out, you know, and it's just like, it's a lifestyle piece. It's JV piece. I don't yeah. It's there's no ceiling in in entrepreneurship in general, and then now we're getting into cash flow and and passive.

Brian: I mean, for me for me, it was always, like, in the beginning, it's like, I've gotta hit this financial mark. I gotta to have But now it's really shifted with our joint venture, it's like, I want to see our partner, Sophia or Tina or Greg, hit these financial marks. And that's what really keeps me foot on the gas, because I know if I'm pushing hard to get them the results that they're they need, want, and deserve, it's only gonna come back in tenfold, you know? Do giver if you haven't read that book. It's a great book.

Nate: Yeah. It's a

Steve: great book. I actually had him he was on Face's thing this past Sunday. Right? Bob? Yes.

Nate: Bob. Yeah.

Steve: He was on, did a book club on on Sunday morning. But, yeah, man, I think that's absolutely huge. The, wanting to help others because that part you said, yeah, I wanna hit a financial mark. We all, as part of our entrepreneur journey, we do it for money initially.

Brian: Yeah. Initially.

Steve: And then eventually, that is no longer motivating. And purpose is what keeps us

Nate: going. Yep.

Steve: What is your biggest struggle right now?

Brian: My biggest struggle? Man, that's a right off the cuff question. And, you know, I would say that my biggest struggle right now, is is literally just taking a step back. And because we have a lot of people who want to come on this joint venture program. Again, I want to lead, I want to serve, I want to help, but I can't help anybody if we build this thing up and it falls flat on its face because we didn't build out the infrastructure.

So it's about being patient. I'm not the best of being patient, being patient and, building out that infrastructure. So that way we can help more people. And just keeping that in mind that, yeah, we're doing it for the greater good. It's not just kicking the can down the road.

Nate: Yeah. That's that's a good answer. I think, like, just making money kinda now you have to learn how to keep it. Right? And that's something that we're both we're, like, you know, talking to CPAs now that, you know, tax strategist, and we're, like, okay.

We really shouldn't have flipped some of those duplexes, you know? Yeah. And it's, kept a few. Captured kept a few duplexes. And, yeah.

I mean, it's just learning how money works and how to defer taxes and how to put money into things and then borrow against it and, like, that kind of stuff. So, like, I think that coming year end, it was a little late to to

Steve: It's not too late.

Nate: It's not too late. It's not too late. It's not too late. Late. But, that was something that.

But,

Steve: renting out your house. Okay. Alright. For fourteen days and renting out your house for fourteen days.

Nate: Oh, the Augusta? Is that the Augusta? Yeah.

Steve: The Augusta strategy. Yeah. Yeah.

Nate: Okay. Yeah. I run anyway. I'm I'm the grand career model where, I don't I'm not I'm not crazy about grand, but

Steve: I I

Nate: don't own my own home.

Steve: Alright. Well, you can't do it. You can only do it in your primary. But, yeah. I mean, I think that's that's the other, you know, next next step in evolution as well.

Is that is that that fun part of trying to figure out, oh, right.

Brian: Now I'm

Steve: making my life. What do I do? I have to do it. Right. Keep it so it doesn't just all disappear.

Yeah. What is your super power?

Nate: Superpower. I don't know. Again, deals, I would say. Being able to make deals happen and, figure out a way in a short amount of time if it's whether it's the sellers or JV partners or it's funny it's money's not lining up or documents need to get out. It's just, like, getting deals closed.

Yeah. And then, I don't know, hopefully, forming a good community. So that'd be that'd be a good superpower to have, just a tight knit. We're taking all the JV partners to Mexico. Not a separate trip.

But, yeah, making a really cool community where everyone's succeeding, that would be that's a super hour I want, I guess. So working on it.

Steve: Yeah. Yeah. How about you, Nate?

Brian: Yeah. I would say for me, like, of course, like getting deals as well and the acquisitions and and and sales side of it, but really taking, problems and saying, Hey, this is a problem, but it doesn't always need to be a problem. Let's put some policies and this infrastructure together and some ops together to not go down this road again and prevent this fire from a

Steve: running again. Yeah. That's the

Brian: fun part of having a business. Exactly.

Steve: Yeah. So then, on that note, what is your favorite best or most interesting failure?

Brian: What is my one more time.

Steve: Favorite best or most interesting failure?

Brian: Interesting failure. That's a really

Nate: I would say I would say the apartments.

Brian: I I would definitely say commercial. I didn't wanna come back to it, but I would say

Nate: They keep up the old ones.

Brian: The commercial venture. And and, again, I'm I'm no deterrent for anyone watching this trying to go in commercial, but, again, it's it's knowing your superpower and knowing, who you are and what you want. And we were like, hey. Let's just do it all. Right?

We we do it all, but, you know, now we know. And now So

Steve: shortage of opportunities for us in real estate.

Nate: Yeah. I mean, the the acquisition process didn't change. Is that what you're saying what you're saying earlier? It's I could it's the same thing. It's the same thing, but it's it's not at all.

Right. And to be operate yeah. To be operators like that, we're, like, that was a failure. Like, I don't even the money the money of it's whatever. I mean, it's just if I was managing a 108 units right now as a sole operator, like we were, I mean, we would not have the lifestyle piece, which, you know, I don't know what the dollar amount is, where that's the most important piece.

But, like, that should be the most important piece, you know?

Steve: Yeah. Well, and I think it's great going back to just what we said a moment ago, like, in real estate, there's no shortage way to make money. Right?

Brian: Like, that's right.

Steve: Colin Schwartz last week was somehow multifamily. Like, Steve, why are you not doing multifamily? Yeah. Right? So, like, the right business model will show up once you understand yourself.

Exactly.

Brian: Yeah. And it's different for everybody. Yeah.

Nate: Yeah. And that's kinda how the JV party popped up. It was, like, organically, it happened like that. Yeah.

Steve: And then Jeremy on YouTube, what's the one thing you learned at Masterminds had the biggest impact in changing your business? Let's start with you.

Nate: It's not one thing. It's just like, it just, like, it awakens your consciousness. I don't know. It just alerts you that there's more out there than what you're, you know, I don't know if you're just, I don't know who you're surrounding yourself with now, but if you get into mastermind, like those people that are negative influence on you will quickly go away. And then you're like, then that's in your feed every day.

And you're like, holy cow, that person is running a private plane. Like, holy cow, they just closed on a couple thousand units. Like, and then you just, it just awakens you to be like, I need to get up and do something. Right? So it isn't like one specific

Steve: There's that Jim Rohn thing. Right? You are the five people who's Yeah.

Nate: The sun. Almost done with it. Yeah. Yeah. Yeah.

Brian: Yeah. I mean, for me, it's you know, I I remember going to this first mastermind and you form these you form relationships, right? You form friends and stuff like that. And then these people are celebrating your wins with you. And and that was big to me.

I'm like, this guy is really excited that I'm doing this and this guy's he's way up here. And then I'm excited and he wins too. And then what happens is you're borrowing each other's beliefs. I know that he thinks I can do it, so I need to go do it. Alright.

Yeah.

Nate: If if you're the smartest guy in the room, you're in the wrong room, or the richest guy in the room, you know?

Steve: Oh, yeah. For sure.

Brian: Either or. Yeah. Either or.

Steve: Is there a book you've given to more than any other?

Brian: Yeah. I just I had mentioned the Go Giver. Mhmm. I really, really like that book. I think it's a very impactful book, and it's a it's

Steve: Well, it makes sense with your nationwide wholesale partnership.

Brian: That's right. But

Steve: that's your favorite book.

Brian: Yeah. Yeah. Yes. That fits me.

Nate: I like, you know, Bill Perkins' Die with Zero. What was it? Die with Zero. Mhmm. It's like this is book.

It's actually what made me get the platter. I was gonna get the ludicrous. I was like, no. He basically says, like, you can it's utilization of money, like, time utilization of, like, if you go if you go heli helicopter skiing, when you can really afford it at 50, you get less enjoyment out of it then than if you broke the bank and did it at 26. He's not saying be reckless, but, like, be, like, to fly first class and, like, I will forego other things to forego to fly that way.

And it's about, like, you know, dying with zero or focusing on the things you really want. And that was that that was Mark Diem recommended that and a lot of people in that Reddit. It's just like, yeah. It's just why are you stealing from your older why are you stealing from your younger, self to give to your older, richer self? You know,

Steve: it's basically Well, it's an interesting concept because it's something that, I've talked about this a little bit is that, there's a lot of shaming out there. Yeah. On, like, you shouldn't spend that much on a car or this or that. Yep. But I, you see plenty of people ashamed that you should never spend that much in a car or Starbucks.

That's the other one. Yeah. Cool. You shame people on Starbucks, which is like, whatever. Right?

But like, you never shame anyone for like, traveling with their family. No. You never shame anyone for like, having a big house.

Nate: Yeah. Right. Or living in a safe neighborhood or assign their kids to get schools. Yeah.

Steve: Yeah. Like, hey, you know, you shouldn't be spending that much money on private schools for your kids. Yeah. You would never tell that to another person.

Brian: Yeah.

Steve: So why would we tell other people how to spend money?

Nate: I don't know. And it's like, that should motivate you to work to make more money to afford the things you want. Right? Right. That's I mean, that's I don't know.

It's a great book.

Steve: Yeah. I had a friend, very recently bought, like, a really, really nice house. He's, like, he asked me, like, what do you think? Because he thought I was gonna shoot you out. I was, like, do you love the house?

Like, yeah. Well, what else are you gonna

Brian: do with

Steve: the money? Yeah. And he was really shocked that I pushed him to buy his dream house. Yeah. It's like, well, this is why we work really hard.

Exactly. Exactly.

Nate: So we

Steve: can afford the things that

Nate: we want. Yeah.

Brian: People always are like, oh, I'll do that one day. I'll do that one day. I'm gonna get this in this you know, they put these markers on when it's okay for them to do it. But those markers are not a you you can never make that marker in there.

Steve: Or not guaranteed.

Brian: Or not guaranteed. Exactly. So, I I mean, I'm not I'm not recommending being out again, not going out here saying being reckless. You still leave, you know, still live below your means, but do the things you wanna do and be happy.

Steve: And the last question here is on Instagram, Kevin Dobner. Does it help you to have a great partner to motivate you?

Nate: Absolutely. I mean, yeah, if you're doing things solo, like, oh, I'm gonna make half less money. It's like, no, it amplifies it way more, you know, you make twice the money. Yeah, I mean, it's like, you know, whether you have a significant other spouse or or whatever, it's just if you have they're a sound board, but if you have someone in the trenches with you, that's like, alright, we're gonna do this or like, you have a problem, you know, and you have he has a different way of thinking in things than I do. Like, he's he's more I'm more quick to react.

He's he's more, like, kinda take a step back and realize from the other person's shoes. So, yeah, absolutely. It complements your strengths and weaknesses, you know? So Yep.

Brian: Yeah. 100%. And also too, you know, no matter what, there's always gonna be times where the other person is maybe a little bit more fired up than the other person too. That's just nature of business. There's times that he's way more motivated than I am and vice versa.

And with that playing field, it levels out where we don't have a dip down in the business whatsoever.

Steve: Yeah. That's a great point. Yeah. I want you guys to think about what you wanna leave the listeners with. I'm gonna make a couple of quick announcements.

Cool. Guys, if you got value today, please like, subscribe, share, and comment. It truly helps us reach more people. And then we do have our workshop. It's coming up in a couple of months in February.

So if you guys are interested, send me a DM on Instagram, workshop, and then we'll get you on that wait list. And then next week we got Jake Harris, Jake Harris coming in and talking about how he's doing 200,000,000 in development right now. Right. And actual is pipeline. It's crazy.

We're talking about like, there's other things that make you feel poor, right? Like, that's 200,000,000, in, in his pipeline. So tune in next week, we'll be back here in Lister Pros for at least one more episode. So what are some last thoughts I'm gonna leave the listeners with?

Brian: Yeah. For me, I would just say anybody who's watching this, if you're thinking about getting started and you have been for some while, just take a leap, do it, but find a mentor, find someone that is going to make sure that your efforts are directed. But don't wait, because it's easy to be like, I'll do it next year, I'll do it next year. Just do something, because something's better than nothing.

Steve: Right.

Brian: But no matter what, if you don't do anything else, get in the right rooms with the right people, even if it does cost you a little bit, look at that as an investment versus a cost. Because one thing I know for sure is if I lose this watch or something like that, someone can take this from me. No one can ever take knowledge that I gained from other people from me.

Steve: Absolutely. Yeah.

Nate: I mean, that's that's good investing in yourself for sure. And that's that's that's the best investment you can make. I can't really add too much more. I just wanna say thank you too to inviting us on your show, man. Like, appreciate it.

This is awesome. You know, we it's cool seeing the area and, it is, you know, we've we've watched you for a while and, you know, for you to invite us out here and give us this opportunity to promote our business and and, you know, shout us out on Instagram is really sweet. So Absolutely. I mean,

Steve: I think the the key here, right, is sharing what's working.

Nate: Yeah.

Steve: Right. And there's so many different ways. Yeah. To do it in real estate. So I love here because this model you're talking about, not a lot of people talk about this particular model.

Right. So I think it's fantastic.

Nate: Yeah. Sweet, man. Yeah. Yeah. Again, just really appreciate it.

I don't want a fan way out too hard. But I mean, we I like, at least three years, like, there and then now you're doing it to shorts. That makes it so easy to watch. So Yeah. Sweet.

Steve: Cool. Appreciate that. Thank you.

Nate: Yeah, man.

Brian: Yeah. Thanks, Steve. Thank you.

Steve: Thank you, guys, for watching.

Nate: See you, guys.