How to Buy Properties Penny to the Dollar

Logan Fulmer: Capable of a lot more than you think you are. If I were to look back ten years ago and you were to tell me that I was buying $2,000,000 apartment complexes through litigation for a million dollars and all, you know, things like this, I wouldn't have believed it. But it just happened a step at a time along the way, and one by one it got there. And I'm no brighter or harder working than probably half the people that are watching today. You can turn your life around in five years.

There are folks out there that would listen to this right now and say, this sounds so complicated. I don't even know that I could do that. It sounds like it's over my head. Where do I start? You know what I did when I was in that same exact spot six months ago?

Steve Trang: Hey, everybody. Thank you for joining us for today's episode of Real Estate Disruptors. Today, we have Logan Fulmer back and Logan Fullen from San Antonio to talk about how he buys properties pennies on the dollar. Every dream where you go to a seminar event, it's like, yeah. We gotta buy pennies on a dollar, but then they just kinda leave you hanging on exactly how to do that.

Now I was going through, and you were here almost three years ago. Right? June 2021. So, welcome back.

Logan: Absolutely.

Steve: Now, guys, I am on a mission to create a 100 millionaires. Information on the show alone is enough to help you become a millionaire in the next five to seven years. If you'll take consistent action, you will become one. And, guys, if you get value out of the show, please hit that subscribe button. That way we can help more people grow.

Now it's been almost three years. What are some of the major changes since you were here last?

Logan: Man, I hadn't thought about it in that context until you brought it up. But when I look back over the last three years, I've become less deal oriented, and I'm managing a company now. So, yes, it's a real estate company. Yes. There's strategy involved, but I'm managing a company.

We got an assistant. I've got an attorney in house. I've got operating partners who I'm helping them grow their businesses, and I'm deciding when's the time to hire more, how do we grow, and it's it's not deal centric anymore.

Steve: Mhmm.

Logan: It's a substantial difference. Revenue is wildly different.

Steve: Of course.

Logan: It's grown.

Steve: Yeah.

Logan: At this point, I've got 20 people in my office. Mhmm. I had to buy a bigger building. It's I had to

Steve: buy a bigger building. I had

Logan: to buy

Steve: Didn't you just buy the other one last time you were on the show?

Logan: Yes. Yeah. That's exact great memory. Yeah. I love that.

There's a piece of my a place in my heart for, like, these old historic mansions, which is our old office. And after I got rid of that because we ran out of space, we got a 15,000 square foot building, loaded people in there. We half of it is tenant space, so we get some income. The other half, we occupy.

Steve: Gotcha.

Logan: So Lots changed. Deal size, our max deal size back then might have been a million bucks.

Steve: Mhmm.

Logan: Top, maybe a little more.

Steve: Mhmm.

Logan: Today, I've got a $10,000,000 deal, $28,000,000 deal, a lot of one, two, three million dollar deals. Mhmm. Deal size change.

Steve: Yeah. So you moved away from chasing deals to now you're kinda in this visionary owner's position

Logan: Right.

Steve: Where you have to drive the vision of the company is what it sounds like.

Logan: That's right.

Steve: We need to hire nine salespeople in the next five weeks. We launched our done for you cell service just a month ago, and the demand for it has been absolutely crazy. We have all these people reaching out to us saying our sales service has been so helpful for them. Please get us more salespeople.

Speaker 2: If you are in high ticket sales or looking to get into that space, if you want a calendar filled up with people raising their hand saying, call me at this time, please sell me, I wanna be sold to by a highly experienced salesperson, we are looking for you to have that role. We wanna take people who are good and make them great. People who wanna be held accountable the same way Michael Jordan would want his coach to hold him accountable to take him to that next level.

Steve: So if you want Ian Ross or myself to train you to get better at sales, if you wanna be able to control your income, decide exactly how much money you make, and you wanna work at a company where you value and appreciate it, we encourage you click the link below. However, we're only hiring superstars. If you're not a plus caliber, don't click below. So are you more involved or less involved in your business today?

Logan: I still spend fifty hours a week Mhmm. Working. I work on different stuff. I'm not at the deal level. I'm not negotiating with people.

You know, I'm I'm talk I've got operating partners. So there's five different business lines in the office, and each one of those is run by a different partner, different LLCs. They'll have a lot of similar strategy, but each guy took ownership and run the business. So I spend time with them, making sure they're happy, making sure their staffing needs are met, need needs are met. Right.

How's their revenue? How's their cost look? Do we need new platforms or programs? And interestingly enough, this last year was nothing like we've experienced in the last ten years. Mhmm.

At that point, you know, we're hold on to the steering wheel, like, powering through, like, why knuckling it? And thank god we didn't have the experience a lot of other people did, but Right. I mean, it was a test of my leadership for sure. We were still profitable. We still do really well.

Well, we made about half the money of what I wrote in there. We made about half last year than we did the year before. Mhmm. Now we picked up incredible equity on deals that we just simply couldn't sell, but they were such great deals. I bought them, and we'll be exiting those deals over the next twelve to twenty four months.

And they'll they will again radically change our balance sheet. But, you know, being a manager of since during those times is is a test, man. I'm glad I had seven or eight years of practice.

Steve: Yeah. So you said there are a couple of things that tested your leadership. What were those things that tested your leadership?

Logan: Historically, cash goes out, cash comes in at a really, more cash is coming in that's going out because that means you're growing Yeah. And you're reinvesting. It went the other way around. Cash was going out, pulling back up. We all read about this.

So when markets go down, all these people get rich. Right? Because they get all these good deals. That's great. But your revenue is gonna suffer.

I don't care how good you are. Even the best companies, it's gonna suffer.

Steve: Absolutely.

Logan: So you're taking advantage of these incredible deals, buying this ridiculous warehouse at a 20 cap. Like, that's unheard of. You're killing it. Mhmm. And then you get halfway through the year and you're like, oh my gosh.

All that cash that we've built and the credit we've began to build over the years, it's dwindling so quickly that if we continue at the same rate by the end of the year, we'd be out of cash. Mhmm. What are we gonna do? Yeah. So now I gotta step back and say, alright, guys.

First of all, slow down. And they're like, I gotta go find the new deal. I'm like, woah. Woah. Woah.

Calm down. Let's figure this out. Yeah. We're having we had to decide to take on on a really large deal. We took on partners.

So other equity outside of ours, which is new to us. Mhmm. Between that, we really had to stay disciplined and say, I know this deal is a 70% on the dollar deal, and we would do those systematically in the past when the market would absorb things like this. Yeah. When you bring this offering to the market in the last year, it doesn't absorb it the way it did.

Steve: Right.

Logan: No more of that, guys. 50%, 30% deals. We have to stay ultra disciplined. And we walked from some great deals, but we had to take the best so that we could use our capital judiciously. Mhmm.

And we also had to work really hard at cycling it quicker. We would just dump stuff on the market. And someone would just it would magically vanish and money would come back. Yeah. Your listings have to be good.

We're taking calls, like, as a sales operation.

Steve: Mhmm.

Logan: You have to prep. You have to get all the diligent stocks ready for people. Like, it's no joke. And you're gonna price it right, and then you're gonna price it a little less than that. Mhmm.

Otherwise, it won't sell like this.

Steve: Yeah. The the dispo process definitely changed. Right?

Logan: Like Yeah. For us, we use mostly MLS and this stuff because we own, but still, you need to have it together. You need to answer the calls, you need to get back to them. Like, there's no horsing around.

Steve: Yeah. I think, the the when the tides shifted, right, or winds changed in '22, what we saw was, like, all these end buyers who are being treated abusively by all of us on the wholesale side we're happy to have their turn to turn it back on us. Right? And so if you weren't on point, they got to be disrespectful. They got to be rude.

They got to treat you like, well, it's me or one other buyer maybe, and that's it.

Logan: Right. Who do

Steve: you wanna work with?

Logan: And a lot of the folks that you didn't that didn't do well or didn't have any business doing this business, but they rounded up some people, got some cheap credit, and they were doing deals they shouldn't have. Those people are gone. So the ones that were left were the solid sophisticated ones that were disciplined. Mhmm. And you better train right right now.

Otherwise, there's 40 of us out there. Yeah. They'll move from you to somebody else. Yeah.

Steve: So you had to, be judicious in the deals that you bought. Now one potential challenge I'm thinking about if you have to be more judicious, because we saw this, is you've got guys bringing you deals that are great deals. They're out there. They're hunting for you. And because you're saying no, that means they're not getting a commission.

Logan: The team shrunk.

Steve: Yeah. So how how how are the how did that play out in your in your business?

Logan: It's tough because as an owner, I'm making decisions to protect capital and and protect the going concern of a company. A sales guy who's trying to keep making his 10 or $20,000 a month is like, buy the deal. Buy the deal. It's good. And I and he will not ever understand what I'm trying to explain to him until he sees a couple deals not go the way he anticipated, and that's the way I learned.

Some of those weren't working like we thought, and the guy's like, dude, these are good deals. They're not not not in today's world. Mhmm. So it stopped. Our sales team shrunk substantially.

We have in our wholesaling business line, at that time, we had 14 people on that side of the office. Today, it's four. And we're doing only much fewer really good deals Mhmm. That if they don't sell, we should probably just buy them anyway, and it's okay. Mhmm.

So that substantially shrunk volume, churn, and overhead.

Steve: Yeah. So sleeping better.

Logan: Yeah.

Steve: Yeah. And you mentioned you got an in house attorney. Yeah. Only one?

Logan: I have one, and we have another one we're getting ready to bring on. We're interviewing right now.

Steve: Remind me again. Were you also, an attorney?

Logan: I'm not. No.

Steve: You're not. Okay. So you always did this, on the you you always had an in house attorney that was doing all this.

Logan: So I had a guy that was yeah. He was spending about half of his time on us. And within the first year and a half, we said we need you all the way. Mhmm. So we have that.

He's same guy has been with me. Then I started using three or four other attorneys for side work because while this one attorney has enough bandwidth to do all of our work, when you have to do three at the same time, it doesn't work. Mhmm. So now we we have several that are outside, probably spending 10 to 25% of their total billable hours to us. And while it's interesting, it's neat because you have you can get a lot done in a short amount of time.

You lose some control. Mhmm. And I wanna walk next door in my office and just say, make this call, type this petition, get this response out. You can't do that when someone works for a firm.

Steve: Yeah. We used to have just up the hall, our title company.

Logan: Oh my gosh. So convenient.

Steve: So we could just walk over there and just hand them a check for earnest money. And

Logan: That's cool.

Steve: And they weren't returning our calls. We could just walk over there. I was like, hey. What's going on with this? We don't have that at this moment.

They moved to a different building. So, but other than two, with an in house attorney is we've thought about bringing it on because we're we're in a situation where, like, it wasn't the right time to bring out in bring in in house counsel, but it felt like we were getting there. Like, whether it was this lawsuit or this complaint or we need to issue, what's it called to to to

Logan: Demand letters.

Steve: To get someone to sell.

Logan: Listing agreement notices.

Steve: No. The to to force them to sell. What is it called?

Logan: A partition.

Steve: Oh, the partition sells if if there's multiple owners, but Yeah. Specific performance.

Logan: Oh, yeah. Right?

Steve: So, like, there are all these things like, man, it'd be much easier because, like, we're either walking away from deals or just, like, not fighting it because, like, is it worth it?

Logan: Right. If you

Steve: have if you have an in house attorney, everything's worth it. Right? Just send it. We'll see where it goes.

Logan: So when you look at what it's gonna cost you between $2.50 and $400 an hour for an outside firm, Mhmm. Dude, that's between 500 and 800,000 a year if it's full time. Right. To bring somebody in house, you can get a stud for 200, $250.

Steve: Yeah. So everything is worth it. You're you're already paying him.

Logan: That's right. Send

Steve: him a nice, letter on your letterhead, and let's go.

Logan: That's exactly right. Yeah. So something that I found as we were growing through this, we went through a process of with a friend of ours. We almost hired a guy Mhmm. And then he took half the time, and we took half the time.

That was gonna be the interim step, and then we hit a growth spurt. We said, forget it. We'll just do it.

Steve: Yeah. And I think I saw on your by the way, your Facebook engagement is exceptionally high. Every time I see you post something, you get a bunch of reactions and a bunch of comments. Right?

Logan: Thanks.

Steve: And I think I saw something a day or two ago by, like, oh, another lawsuit. I think you recorded the video.

Logan: Oh, the process server.

Steve: You're walking up to meet the process server.

Logan: Yeah. They're always like, hey. It's low it's like me or one of the partners are getting notice of something. Yeah. And it's like, literally, when someone comes to the office, I think we have more process servers and appointments now.

Steve: So talk to me about, like, what what is going on to have that to have that much activity from process servers inside your office?

Logan: You know, we get involved in a lot of properties that have judgments or liens, outstanding, tax. So in Texas, we're a judicial foreclosure state for taxes. So, basically, the way most people understand it is there's gonna be a tax sale every Tuesday, and people don't pay their property taxes or property is getting sold. Well, when you get really deep into that, start to get really sophisticated, you can enjoin yourself in those tax lawsuits when you buy shares of the property. And now

Steve: Is it enjoin?

Logan: Yeah. So I'm gonna intervene. So for example, if you and your sibling both owned a property fifty fifty and y'all couldn't agree and the tax sale is about to happen, you want to sell, they don't, you could sell me your share. Mhmm. Without title insurance, I buy your share.

I go to the other sibling and say, look, I picked up some equity on Steve's share. Let's go sell together. You could sell your share to me, but we have two weeks until this tax sale. So we need to figure this out.

Steve: Mhmm.

Logan: And if they're still unreasonable, I can file something to stop the tax foreclosure

Steve: Mhmm.

Logan: And be added as an intervener. So I can enjoin myself into the lawsuit. Mhmm. The reason you want that is because before I'm in that lawsuit listed as a defendant, I can't get the excess proceeds.

Steve: Right.

Logan: And you can't assign your rights to me in Texas for me to go your excess proceeds. I need to be in a lawsuit.

Steve: Yeah.

Logan: But once I do that, now I go back to your sibling and say, house property is getting sold by the sheriff, and I'm just gonna watch it, and I'll get the excess proceeds. But if you'll play ball with me, we'll go to the market and get the top dollar instead of letting it auction off. Alright. So it's a defense mechanism.

Steve: Splitting the excess proceeds or you're getting excess proceeds?

Logan: Depends on who responds to the to the petition.

Steve: Gotcha. So you're putting yourself in a really good position here.

Logan: Right.

Steve: And he he has to play ball.

Logan: They do. They should.

Steve: They should.

Logan: One at about 15 go that route. The rest of them, I negotiate. Like, sometimes I'll say, look. You're in a tough spot. I know you don't have the money to pay the taxes.

I know you need to live here a little bit longer. Let me restrain the county. And when we go sell together, I want a third of your share or I want a half of your share, your proceeds. But I'm gonna pay the taxes. I'm gonna deal with any judgments or liens, and I'm gonna prevent the county from selling it out from under you on Tuesday.

But I want a share of your share.

Steve: Mhmm.

Logan: So let's do that, and I'll let you live there for the next ninety days, figure it out, help you find a place

Steve: Right.

Logan: That I can share your share.

Steve: Is that where a majority of your business is coming from?

Logan: You know, delinquent so I have found there are a million ways to look at these types of deals and find them, search them out everywhere.

Steve: Mhmm.

Logan: But the most common thread I found over the years is every one of them is behind on taxes. Right. Almost. So we started shopping with a delinquent tax list and, a, we have good deals for delinquent tax list, b, half of them have title problems.

Steve: Right.

Logan: So I think every single one of them we're dealing with these days have a delinquent tax component.

Steve: Yeah. I mean, that's the one area where I am extremely envious.

Logan: Are y'all low property taxes out here?

Steve: Yeah. Right. I'm extremely envious of how things are done because you guys in Texas, don't mess around. Right? Super Tuesday.

Logan: Yeah. Right? Super Tuesday.

Steve: Yeah. And let's let's go to work. And it's just the way it's done, and there's a lot of people that do a lot of business from tax sales. But between the higher taxes, so it adds a pretty quick

Logan: Oh, yeah.

Steve: And the fact that you guys don't mess around with those foreclosures. Because we have, I think you get two years you can be behind on taxes before you can lose. I think the third year is when you actually lose the home.

Logan: Oh, wow. In Texas, you can be served as soon as the first year during your delinquency. Mhmm. It's quick.

Steve: Right.

Logan: But some of them can drag on for ten years because we have a pretty detailed process. Everyone's gotta be noticed. You have to identify all the owners, and many times, there are multiple owners because they've inherited it. So it's a slower process sometimes.

Steve: Yeah. And I've seen other ones where my understanding is if they're elderly, it's a whole different scenario.

Logan: So there are times where if an elderly person files for a deferral, then the county will not foreclose, and they basically just have an agreement that says, we're gonna let the taxes run. And when you die, we're selling this, like, right after you die Mhmm. And we're gonna get all of our money. You would not believe the statutory interest rate is almost 40 it's 38%.

Steve: So they're getting all of it. It.

Logan: They are killing it.

Steve: There is no leftover.

Logan: Yeah. Their payment is deferred, but the off the tax office is getting every nickel of that equity.

Steve: Yeah. Gotcha.

Logan: It's a hell of an investment. I wish I could buy those investments.

Steve: I just gotta start your own government. So you say you got partners you work with. So you're saying you got multiple was it operational partners? What was it?

Logan: Yeah. So I would say an operating partner is the right way to call it. They were guys that had been in real estate or were just starting, and they had the talent. They had the drive. They didn't have the experience or the capitalization that I had.

So we'd meet and say, look. Let's work together for about a year, and I'll teach everything I think I know.

Steve: Mhmm.

Logan: I'll capitalize this thing, and you run the business. You go find the deals. Let's figure them out. Let's sell them. If you wanna hire employees in your company to grow it, you can do that.

And that's allowed me to grow and retain really good people. Whereas most folks, you get a superstar who's so good and he's entrepreneurial. Couple years, dude's gone. Right. Well, I say, woah.

Woah. Don't leave. Let's just be a partner. Yeah. And he's gonna go out and try to find someone to help him raise money and try to most deal guys are deals guy deal guys.

They don't wanna hire a secretary. They don't wanna deal with banking. They don't wanna deal with paperwork. I'll do all that. Just go find the deals.

Steve: Yeah. Okay. So an operating partner, these are not all partners together. No. It's you have multiple partnerships.

Logan: Several business lines. Yeah. There's more or less half a dozen business lines in that office, and each one has its own owner operator.

Steve: Yeah. So it's interesting because I was going through your bio. You call these business lines. Right? So I hear a business line.

I'm thinking like a business line of credit.

Logan: Oh, okay. Yeah.

Steve: So you're saying business lines. So, for everyone that's listening, right, that might wanna go down this direction. Right. What does it mean to have multiple business lines?

Logan: You know, I guess that's the right word that I use, but it's basically like owning six businesses.

Steve: Mhmm.

Logan: The difference is I'm not the sole operator of each one. I found a really special person, and they run that business.

Steve: Right.

Logan: So their role would be president, CEO, and owner. Mhmm. A lot of times when a business gets big, you'll hire those roles.

Steve: Mhmm.

Logan: In this case, they got half the equity, and I can depend on having them as a partner or a manager far longer than you could a hired hand like a president or CEO.

Steve: How many of those do you have? Five. Five. I think I met Kyle last time you Yeah.

Logan: Yeah. That's right. Yeah.

Steve: So, so five capital partners.

Logan: Mhmm.

Steve: How did you find these cap or these operating partners?

Logan: You know, it's it's a lot like getting married actually.

Steve: Like having five wives? Dude.

Logan: Yeah. Like, in the straightest way possible, you've gotta find someone who you get along with. Mhmm. You've gotta find someone that shares the same core values in terms of willingness to work, dedication, intellect. I mean, it's it's actually a really interesting thing because a lot of folks' partnerships don't work out.

Steve: Right.

Logan: But I met one guy, Ryan. He was my first partner there. And I worked with him for a year and just watched how he manages personal money. I watched his relationship with his wife. There's a lot working next to someone day to day.

You can see Mhmm. I watched how he managed his nutrition. I mean, all these little things, I'm like, what kind of dude is this? Mhmm. And after the year, I said, dude, I can be a partner with you.

Let's do this. Mhmm. And after that experience, probably about six months later, I said, you know, I wanna do this again. Mhmm. And you would be surprised if you walk around every day all day thinking, would you be a good partner?

Would you be a good partner? Would you be a partner? You'd be surprised. You have good partners in your sphere right now. Mhmm.

You just haven't looked at them through that lens.

Steve: Gotcha. So now going back, it makes more sense when you're saying, test your leadership because you got five, six partners Yeah. And you have to have this conversation with every single one.

Logan: Yep. And, ultimately, you go through a there's these things where this happens with every human. They want this job so bad they can't see straight. They get the job. They start getting raises.

Three years in, the job is not as important as it once was. And then they think, well, your business can't run without me. Mhmm. Or, you know, there's all these internal struggles that they have. And I find in the life of a partnership, I've seen that too.

You know, the guys just wanna be the partnership where they can't see straight. Well, when these guys have $2,000,000 in their bank account and all these rent properties, you know, they start to think, well, should I have all the pie? And that's a challenge too for leadership. Some guys sit down and say, let's talk about this. It has to be a direct conversation.

I like you. I care about you. Oh, but you see me going doing a bunch of speaking and not participating in your business and you're doing the work. Remember, you're the operating partner. We talk through that, and I say, let's talk about it.

If we broke up the company next week, what would you do? And they tell me they go run an office. They go hire secretary. They go do all this stuff. I'm like, wait a second.

All that takes, like, four months, but you're not doing any deals. And then we start to talk about what it really looks like. And a lot of times, they realize, yeah, what we have here is pretty good. Mhmm. I don't know that I wanna be the dude that pulls with that stuff.

Steve: Right.

Logan: But it those things happen.

Steve: Yeah. Have you had to, had any after that conversation, decide to go off to do their own do their own thing?

Logan: No. One guy, he we started he initiated that conversation, and I was kinda on the fence. You know, for the first year, he was a killer. And the last year, he was like, I just I don't know what happened to the guy. Mhmm.

And finally, when he brought the conversation up, I said, you know what? This is a good time. Let's talk. Mhmm.

Steve: And

Logan: it wasn't what he expected. It was the other way around. Like, this is down to wind it up, sell the assets, and go.

Steve: Yeah.

Logan: It was the right move for us both.

Steve: Mhmm.

Logan: But, yes, I didn't expect it.

Steve: Right. So, again, multiple business lines. Yeah. What is the forte for each one of these guys?

Logan: One of the guys does mortgage for pre mortgage foreclosures only. Marketing to trustee sale postings three weeks before the mortgage foreclosure. Another guy does commercial wholesaling. Another guy does tax delinquent, tax foreclosures. And then another guy does kind of a combination of those.

Mhmm. But ultimately, they're all looking through a lens of distress and trying to find opportunity through that lens of distress. Right. It's kinda just different channels. Mhmm.

Because they've each gotten really good at a specific one. And instead of trying to be, you know, a jack of all these trades, they say, I'm just gonna tone this or tone it into this one.

Steve: Yeah.

Logan: So it it's very systematic. It's very articulate. I mean, it's mapped out like Monday, Tuesday, Wednesday, Thursday, Friday, what this process looks like. And it literally you put in the input, and it literally spits out discount properties on the other end.

Steve: Yeah.

Logan: And this is a very custom business. So over ten years, the fact that we've been able to get it producing in a way like this is I feel very proud of it.

Steve: Oh, absolutely. And I think having multiple operating operating partners who have their own strengths and are hunting their own thing. So they get to be great at what they're great at versus you trying to be great at three, four, or five different things.

Logan: Yeah. I can conceptualize those things and help people get there, but doing that stuff, doing the work actually is it's a different thing.

Steve: Mhmm. Yeah. So I think, you know, tax, we just talked talked about that a moment ago. Pre foreclosures, I mean, a lot of people do pre foreclosures. Is there anything exceptional that your guy does that we should talk about here?

Logan: You know, in that case, the guys are doing pre foreclosures. I'll tell you where they destroy everybody. There is no delay. The posting comes out in the land records that says there's gonna be a foreclosure sale in twenty one days, usually, or at least twenty one days. Folks will buy a list of those, and that list is produced a week or so after that data is out there, and the list isn't updated as often.

We're checking the land records at 9AM in the morning for the postings that have happened from noon until five yesterday.

Steve: Mhmm.

Logan: Literally, the first person to see these will pull those listings, will vet equity, make sure it hasn't been resold or sold already or deed change hands. We'll dump it into our data program. We'll pull the data out. And by 11:00, we're calling those people. Mhmm.

So within twenty four hours of the substitute trustee filing, we are calling them and setting appointment or cutting a deal on the phone. Yeah. We are the first one first big to the trough withstanding nothing.

Steve: Is that public record?

Logan: Yeah. So That's the thing. You can I literally talk about this all the time? I'm still the first big of the trough, man.

Steve: Yeah. It's, it's fascinating because the data is there.

Logan: Oh, yeah.

Steve: It's just not organized where you can just hit the export button.

Logan: Yeah. That's true. You have to look at a legal filing and pull four or five pieces of data, dump it into CRM, and do a little work.

Steve: And it's great because that's just that little bit of difference between you doing it and then going to, for example, a Right. PropStream. I don't know if Propellio is still doing it.

Logan: They don't pull the data like this, though. I know they all say but I'll tell you what. If I could buy those programs for a $100 a month and they get the data that I need this quickly, believe me, I do it.

Steve: Oh, of course. Of course. There's gonna be a delay. Right? And that's the that's the thing.

I mean, like, I I I've done a lot of work with Investor Machine. They have VA. It's just scraping websites. Wow. So the views are scraping websites, and you're getting the data.

And so what we found a lot was, like, I would talk to you, and I'm, like, the first person to talk to you. And, and, like, we'll see where this goes. But, like, they're still really hopeful. Right? Because in Arizona, you got another three months.

You have twenty one days.

Logan: Oh my gosh. Y'all are, like, ninety days?

Steve: We have ninety days. So they're, like, super they're still super hopeful. I can figure this out. Right? And, like, it's irritating.

And then when we do our follow-up call, you know, a couple weeks later, now everyone that's got Prowsham has hit them up. Right? So, like, we get data fast, but if we don't close them, lock them up in those first two weeks.

Logan: Get ready for the calls.

Steve: Then everyone else is getting them. And it sounds like you kinda have the same thing. But Right. Fortunately for you guys, you got twenty one days. So there is not, like, well, I'm gonna work it out with the banks.

Like, no. Your obstacle I hear from newer wholesalers is finding buyers for their deals. Because unless you've built a massive buyers list or have a huge dispo team, you might struggle to move your deals. So when we started working with InvestorLift, we've been able to reach new buyers and sell deals faster at higher prices. We can see buyers in our area, their contact information, and with the new AI capabilities, connect with the buyers most interested in our deals based on the algorithms.

We can also see who's clicked on our deals, how many pictures they clicked on, and how long they spent looking at it, and finally, what actions they took after engaging with our deals. We are now connected with thousands of buyers in our markets, and we now know exactly where we are with each deal and what next steps to take. If this sounds like something that would resolve or help your dispute process, I highly encourage you. Go to the website, put in disruptors for 10% off so you can focus on locking up deals unless I'm worried, stressed, and frustrated about finding buyers.

Logan: You you are that should have happened. So there's that. That's one of the most important parts. The second part is everybody is hitting people with lowball offers, and, obviously, we do the same thing. Mhmm.

But we have another offer where we'll say, look. Why don't we do this? Let's get the foreclosure postponed. If we need to pay a reinstatement or a fee or whatever, maybe we need to file file a restraining order with our attorney against your lender to protect you, we'll then get my wife to list your property for anywhere between 10 and a 20% commission. Mhmm.

So traditional is six, but it's not it's not fixed. Mhmm. It's traditional. Alright. So when we do the listing, let's say we do, 15% listing, 3% to the buyer's agent, 12% to the listing agent Mhmm.

A $300,000 house, you're talking 30 to $40. Right. That's a great wholesale fee.

Steve: It is.

Logan: So if the folks just don't wanna quite let go or aren't quite ready, I can destroy all the other investor offers by saying, let us take you to market. Mhmm. You'll likely net more with us, and we're gonna do great. And now they're on board with us because there's no one that can offer higher than us. Right.

So it's another way we're really elbowing other people out of the way.

Steve: It's destroying the competition. Yeah. I love it. So, this might be a ridiculous question, but then cash buyers were really your only option. Right?

At a 15% commission.

Logan: Well no. So in this case, we're going to MLS.

Steve: Right. No. I get that part.

Logan: And folks as long as the house is in good enough condition, they're selling to conventional lending, sometimes FHA, VA. Because I've

Steve: tried that, and I got my hands on that pretty hard.

Logan: What do you mean? From broker?

Steve: From the loan lenders. Right? There I think they were saying 8% was the maximum commission

Logan: Really? We

Steve: could collect on a on on a finance deal. Those cash is like whatever. Right?

Logan: Where was that? Was that in Arizona?

Steve: That was in Arizona. So you can collect whatever commission you want on a cash transaction, on a finance transaction where it's government backed. I got a lot of pushback. They're like

Logan: Interesting. It

Steve: was more than eight, then they're starting to ask what's wrong with the bank. Yeah.

Logan: We haven't had that problem. We've seen conventional loans.

Steve: We've seen Texas more

Logan: and more.

Steve: So I might be moving I I'll be joining you in Texas.

Logan: We have good our rules and our eggs are good. Yeah. They really are. You can't horse around. You can't break the law.

But I'll tell you, man, we've got a lot of leniency to play. Now, you know, at the end of the day, that with this kind of we have a lot of bad actors because we've got lax rules. There's a lot of room in there. But I'll tell you what, we're upfront upfront and we're honest with people. And we tell people, look, we're gonna make good money doing this much more than a traditional realtor.

However, we're gonna get you more than everybody else. We're gonna engage our attorney to make sure that there's no loss here, and we're gonna deliver you to market. So just chill out. We'll get you paid in a month or two.

Steve: Yeah.

Logan: And I believe it's a great service to them, especially considering the alternatives.

Steve: Oh, yeah. It's the best option for them.

Logan: That's right.

Steve: Right? As long as the best option for them.

Logan: You go get a 6% realtor, that means you got your shit together four months ago. You didn't do that. Now we're here.

Steve: Now we're here. Alright. So you want more money or not? Right. It's a pretty pretty easy sales pitch.

Logan: Yep.

Steve: Then you mentioned substitution of trustee. Uh-huh. So you wanna elaborate for those that are less sophisticated as far as reading file documents, what that means.

Logan: So the substitution of trustee or the notice of sale, sometimes they can be combined. When a mortgage is originated, a trustee is listed for the lender, and that's basically like a custodian. Like, if something goes wrong with that loan, a borrower doesn't pay, or there are problems with it, that trustee is supposed to figure out how to fix it. He's the lawyer that represents the lender. Right.

When it comes time to do a foreclosure, a lot of times, they're big groups of law firms that are listed as trustees. So substitute trustee filing means that old substitute, that old trustee lawyer, we're appointing a new one. Mhmm. And if you see that just filed, that means a foreclosure is coming because you have no need to appoint a new trustee. Mhmm.

So sometimes you'll see the substitute trustee notice filed, and there's no notice of sale yet. That's a little earlier indicator that a mortgage a mortgage foreclosure is coming.

Steve: Right.

Logan: It's a one page document. It says it real big. Substitute trustee notice.

Steve: Yeah.

Logan: It's as good as a foreclosure filing. You know, phone call them.

Steve: Yeah. So I I think that's for anyone that's listening right now that they didn't know that bit. That is a huge takeaway. Right? Like, not everyone knows that.

Because everyone knows, like, thirty day lates, notice trustee sale, and this and that, which are important. Right? Because that is the formal notice, Rogan, of foreclosing on you. But not everyone knows is the substitution of trustee is, hey. We're about to foreclose on you, and we're just getting our ducks in a row.

Logan: Bingo. Yeah. That's it.

Steve: So I that was a big tidbit for everyone that's that may not be familiar with it. Check your public records for substitution trustees. So the commercial, that was when we talked about last time. So people may not have heard the last one. Commercial is always an interesting situation for wholesaling.

Right? Yeah. There's not a lot of people who do it. I you're for me, I think the only person that comes to mind Yeah. For commercial wholesaling.

I don't have a lot

Logan: of folks that do it.

Steve: Yeah. So talk to me about, commercial wholesaling.

Logan: Every once in a while, you'll see folks sell off a contract because these are sophisticated people generally in the commercial world versus the single family world. So So you might have a buyer, he's an investor or maybe even an end user, contracts a property and decides it's not for him. Something during his diligence period lets him decide that's just not right for me or it doesn't work. They can sell that contract and brokers are there's a big network. Brokers talk much more in commercial than they do residential.

They're all, like, intertwined. Mhmm. And they can sell off that contract. And you do see it happen in the commercial world, not as a wholesaler. It's just sophisticated buyers and sellers do this.

Steve: Right. They they intermingle. Yeah. They they they they're not bound by the code of ethics.

Logan: It's different. Yeah. You know, I've seen I've read about transactions in Manhattan. Like, the Coca Cola building several years ago was, like, a 8 or $900,000,000 transaction, if I recall, on 5th Avenue, I think. The buyers contracted it and couldn't get lending arranged.

So they filed a lawsuit against the seller, Coca Cola, to slow them down from ending the contract. They went and found another person that was credit worthy and sold them the contract for, like, $50,000,000 or something. That's the largest assigned commercial deal that I've heard of. Yeah. But it happens.

Steve: Yeah. And I remember watching some old video. I think it was, like, an Instagram or whatever of, like, Donald Trump.

Logan: Oh, really?

Steve: Wholesaling, a a commercial building that he had. Right? Except he didn't call it wholesaling. He was assigning his option Bingo. On the contract.

Logan: Let's do it.

Steve: Yeah. I'll go back to

Logan: So there's that situation where it just happens. So the reason I say that is to set the tone because it just happens more in that world than it does single family.

Steve: Yeah.

Logan: In this case, we said we've done this with single family and duplexes and fourplexes. Why don't we do this with commercial but intentionally? Mhmm. Let's go get contracts. We're really good at valuing and understanding the market value in these the big MSAs in Texas.

Let's go get contracts for property that's less than it's worth or close, see if we can sell them. And why it's a little it's got some opportunities in commercial because values fluctuate so easily in commercial. The way that happens is most people are looking at it on the income model. That's like, you know, your golden rule, but an owner user might pay a little bit more. So you have a different valuation for the owner user.

It's rent versus what's my mortgage. That's a different way to look at it. Outside of that, you might have different people that say, you know what? That's not the prime market, but that's a great market for me. Like, that location in town is not the best location that there is in town, but for me, it's great.

Steve: Right.

Logan: So values can fluctuate on that. So the reason I say that is values are not kinda dead on as you would think. Like a house, go to Zillow, to a subdivision, do the numbers there. It's pretty close if it's fixed up. Not like that with buildings.

A seller can sell me a warehouse or contract to sell me a warehouse for 1,000,001 half, and it's worth 2,000,000 because I know the buyers that want that really bad over there. Mhmm. And he doesn't necessarily know that difference. And his broker, unless they're an expert in that particular industrial market in that niche, he doesn't know either.

Steve: Right.

Logan: So there's a lot of room to find the differences there Mhmm. In the commercial space.

Steve: So just to reiterate, you got a property that might be valued a certain way based off of cap rates. Yeah. Right? Based off net operating income. That's how that's just how they value for this area.

For this property type, this is the cap rate. And then you find an end buyer who is willing to pay a premium because all he cares about is what does it cost for me to get into this building, leasing it versus buying it.

Logan: Right. That landscape company is gonna pay rent over here. And if he's got the money for a down payment, his mortgage is actually less. He would rather do that, so he's willing to pay a little bit more money than the disciplined investor who's looking for a nine cap. Right.

So there's a lot of that. If I had to guess, half of our stuff sells to an investor, the other half does sell to an end user because there's that premium associated with them.

Steve: So are you paying close to market? Are you paying slightly discount? What are you paying for, for the property for the commercial properties you're wholesaling?

Logan: I'm looking to get about 10% discount. And the interesting part is you're looking at much bigger dollars. So 10% on single family, that's nice, but it's not life changing. Mhmm. 10% on a million dollars is a $100.

Steve: Mhmm.

Logan: 10% on $4,000,000 is damn near half million dollars. Right. That matters. The other part is a lot of these broke now sometimes you get a better deal or you get a much bigger discount. But another component of this that's really important is brokers aren't really there to fight you on the nickels and dimes.

They're there to get a deal done. Mhmm. In residential, someone's getting ready to sell you their house for $2.70. It's worth 300. And they call a realtor, dude, realtor's coming in here hot.

They're bombing your deal, dude. Their job is to get the top dollar for their client. Mhmm. That's not the case in commercial. Think about if, if someone's gonna a seller is ready to sell me a warehouse for $2,000,000.

Steve: Mhmm. But

Logan: or I'm sorry. If they're gonna sell to me for 1.5, but it's worth 2. Okay. They engage a broker. He starts helping them.

The difference between the commission on one point five and two for the buy side broker is was that 40,000 or 60,000?

Steve: I mean, it's typically 2%, I think.

Logan: Three on this price point is three. So Okay. Three or 45,000 Mhmm. Would be 3% on 1,500,000.0. Yeah.

45,000 or 60,000.

Steve: Right. 15 k difference.

Logan: Right. At the end of the day, most commercial stuff takes six months or a year or more. Yeah. And if you're a broker and something somebody shows up and says, I'm ready to do the deal now. They got proof of funds.

We got a buyer seller ready. And am I gonna go and say, no. No. No. I don't want that deal and make 45?

I wanna fight my whole life in the market and the buyers and sellers and all that to make 15,000 more in twenty four months? Hell no. They They want 45 right now. Let's get the deal done. And the buyers' brokers are generally our best advocates.

Mhmm. Whereas in residential, it's typically

Steve: Yeah. I mean, I've seen a a lot of the commercial brokers have massive drinking problems because they have the it's not like there's abundance of deals.

Logan: It's tough.

Steve: They might work a year and a half on one deal, and it's still $50.50. It's gonna close on closing day.

Logan: That's elephant hunting, man. Yeah. Feast or famine, dude.

Steve: Right. So, yeah, that guy is definitely not gonna be fighting you over $15,000.

Logan: Bingo. Yeah. So, also, when you're dealing with single family and someone says, I'm gonna call my attorney and get some guidance, you know, that you you immediately think that's gonna be trouble. In this case, they just need the attorney to look over the contract. That attorney doesn't give give a fuck up.

They don't spend time dealing with that.

Steve: Well, they can't they're not even qualified.

Logan: That's alright.

Steve: Yeah. Yep. So right now, you're buying we're talking about the show. Right? How to buy properties pennies on the dollar.

So what advice are we giving to our listeners on how to buy properties for pennies on the dollar?

Logan: So these are all really interesting, like, I guess, sub components of Mhmm. Of of more foundational message is distressed property acquisition is where all of this is starting for me. I don't like to do construction. There's all these things that I'm not willing to do, but if I can buy your Monster Energy drink that is worth $3 Mhmm. If I can buy that for a dollar, a dollar 50, how many can I load up on?

Because Right. I don't have to do any work. I can just liquidate it for $2.75 and make money, or I can go to a retail market and get $3. I make a lot of money Mhmm. Without doing any additional construction or any other work.

So you've got tens of thousands of properties in almost every big city that have extreme ownership issues, title problems, tax liens, breaks in the title chain, you name it. Every single person looking at this show right now has countless deals in their CRM that could not close and they walked away from. Those are the deals I'm talking about. Mhmm. Not the deals that you're actively working, the deals that you couldn't close.

Those are the deals that we examine and say, can we make something out of this? Yeah.

Steve: So just to clarify, the deals that we couldn't close because of title issues.

Logan: Right.

Steve: Right? Not

Logan: not because of, like, a knucklehead seller who want too much money. Not that.

Steve: Or a realtor getting in the way. Right.

Logan: Or a realtor in the way.

Steve: Right. Actual title issues.

Logan: Right. We're looking at, let's say, grandpa owned the property and four or five kids inherited it, and then there are a couple grandkids that inherited those shares. You have 10 or 15 owners that don't get along. That's one. Mhmm.

A break in the title chain a lot of times is caused by missing probate. Or let's say a person who buys a property and for some reason, they forget to record the deed and then they go sell it to somebody else. This happens on rural land. Mhmm. They don't go to title companies.

Sometimes they don't even use lawyers or sometimes they do use lawyers. They don't record that deed. They go to the next person. It trades a couple times, and now you wanna sell it to me and I want title insurance because the grandkid's done with this property. They have a break in the title chain from forty years ago, and the person who sold it's dead.

You gotta fix that to be able to sell this, and most people aren't gonna dig in and say, let's figure this out. Yeah. So those are the deals that we have practiced and have the experience and systematically execute.

Steve: So walk me through. Right? Clearing title on a property that forty years ago, someone sold it but didn't record the deed. How are you clearing that title?

Logan: So here's how it's gonna start. One of Steve's realtors calls him and says, would you like to list your property with me? And they say, great. I've been ready to do this, come to a listing appointment. They come to their pitch.

It's exciting. They get a listing agreement. They put it on MLS, and they get a contract for $250,000. And the title company takes the contract and returns some title work. And down there on the schedule c, it says all these things.

The biggest one is you you have a break in the title chain from 1974. There's no vesting deed for John Grubbs who sold it 1983. Mhmm. There's a gap, ten year gap or whatever. That's the issue.

Well, now your seller, your agent seller is unhappy. The realtor says, let's call a lawyer. The lawyer didn't really know what to do. Strangely enough, they don't. And they go through this process, and then they walk away.

And then then wholesalers or investors, you know, call these people and they take a stab at it. Same problem. Now they've tried to sell us probably two, three times, and it comes on my radar because they finally say, I'm just done paying the taxes. I can't sell it. I can't do anything.

I don't know what to do. Forget it. They stop paying the taxes, or they maybe get referred by one of the the third agent that gets involved Mhmm. Shows up to my plate. I look at this and say, first of all, is the juice worth the squeeze?

Mhmm. Unless the property is worth $250, I really don't wanna touch it because there's not enough for me to wanna do it. Yeah. I need to be able to pay legal bills to fix the problems, pay enough money to the seller where it's actually worth their time to show up and close, and then have enough equity where I wanna make 50 or $100 on the deal. Mhmm.

So in this case, I'm gonna look at it and say, here's the break in the title chain. This person that died, that should have given a deed 1974, renew some genealogy research and find out he's got three kids. They're all still alive. So our private investigators are gonna track those three people down Mhmm. And tell them we have a title problem.

Tell you what, we really need to get this solved. We'll give you $5 to sign a bunch of documents to clear up this break in the title chain. Mhmm. Will you help us? You're gonna get an affidavit of airship from the deceased parent and deeds from these three kids.

Mhmm. If they agree, great. Give them the $5, do the paperwork, record it all in the land records, and then when you go back and show the title company, boom, you're clean. But every once in a while, they say, we're not doing this. No way.

And that's when I have to say, okay. I really wish you would help us, but instead of me giving that money to you, I'm gonna have to give it to a lawyer and we're gonna file a quiet title action. And the unfortunate part is we have to list y'all as defendants because y'all would be the only person that would have a claim against this property outside of us. I don't wanna do that, but I gotta fix this problem. Can I give them an idea instead of the lawyers?

Mhmm. Most times, they'll change their mind.

Steve: Right.

Logan: One in 10 times, they don't change their mind. They get to go to court. And they don't show up and get default judgment and title

Steve: anyway. Right.

Logan: And they don't get any money.

Steve: Yeah.

Logan: So in that case, that's how that works.

Steve: Got it. So either way, we're finding the errors. We're playing nicely at first. And if they don't cooperate, then we're going through court. And either way, title is clean.

Logan: Title's gonna get fixed. When that judge's order is handed down Mhmm. That's what the title company will ensure on the backup. Mhmm. They trusted the judicial system worked.

Steve: Have you ever had a situation

Logan: where

Steve: because you got a clear title because there was some like, money changed hand. Did you changed hands? You had a situation where, I don't know, you couldn't prove that the sale occurred? I guess if you sign a quick claim, it doesn't really matter.

Logan: Well, when when that transaction so that's part of the job of a quiet title or a trespass to try title suit depending on the fact pattern. I'm in the middle of one right now. The family said they didn't sell the property. Mhmm. And I'm like, okay.

So what you're telling me is someone showed up and lived on this property for twenty years, paid the taxes, here's the tax records, they maintained it, then they sold somebody else. They moved on the property for ten years. So you're telling me that your relative didn't sell the property, they just vacated, never to be seen again? Mhmm. They said, yeah.

So I think you're gonna have to convince a judge of this because I think this sounds like BS.

Steve: What is it? What's it called when you stay on a property? Adverse possession. Adverse possession.

Logan: So that's another layer. One of the tricky parts of the adverse possession thing is you need to have color of title, which would be some sort of instrument of title in Texas. Otherwise, you're gonna have to go through, like, a ten year or twenty year statute, and you can tack the prior owner's claims together. But it's a little more complicated lawsuit. Yeah.

People think it's gonna fix a bunch of title problems, and it's a very narrow window of what it will fix.

Steve: Yeah. I've never been involved in an adverse possession. You learn about it, right, in real estate school. Yeah. But I'm trying to think, like, I think, Louisiana is, like, one of those states where, like, it's great.

You know? But, like, here, it's ten years.

Logan: Oh, okay.

Steve: So, I think Texas is, like, seven years or something like that.

Logan: Well, we have multiple statutes. The shortest is four, but the longest is 25. So it depends on the fact pattern. Did you occupy the property? Did you pay the taxes?

Do you have color of title, which means a vesting instrument like a deed? Even if it's a bad deed or an erroneous deed? Do you have that? Yeah. So it just depends on

Steve: Yeah. A lot of factors.

Logan: Right.

Steve: So there are three different deals you're working on right now just to add clarity and context to what we're talking about today. So you got 13 acre tract of land worth 250 k. Wanna talk about that talk about that deal?

Logan: You know, why I like talking about that one is, obviously, when we get we're in this environment, we talk about the biggest, coolest, craziest deals.

Steve: We're gonna pick that one. It's a podcast. We have to talk about this.

Logan: But I picked that one because it's a it's a mean deal. It's a very average type. Mhmm. More often than not, I bet you that fits 50% of the transactions. It's worth about $250.

I'm gonna be all in for between 50 and $70,000 in my sales cycle well, cash conversion cycle from the moment I call that person until the time I get paid selling it is about a hundred and twenty days.

Steve: Mhmm.

Logan: And that could be any of those problems you're talking about, but it generally won't include a lawsuit. I could file a lawsuit and then the counterparties will settle real quickly. But if you actually have to litigate, it doesn't fall into this category. But that track the land, I've got half a dozen that fit that same category. And they're quick.

It came from the delinquent tax list. You make a 150 or a $180 on them, and you turn it a hundred and twenty days Mhmm. And your investment is 50 to $70. It beats the hell out of flipping houses.

Steve: And is this one of those where your guys are on it? They see the public record, and they're you said the first pig of the trough. Is that the expression you guys use in Texas?

Logan: Yeah. First pig of the trough. Yeah.

Steve: So is this is this an example of that?

Logan: This is. But in these cases, we're not waiting for the tax foreclosure sale to be issued. We're going in and looking at the court docket to see when the tax lawsuit is filed because it can take six months to two years for the judicial foreclosure to be complete and the sale order happen. We're doing it the moment this lawsuit is filed and citation has been issued to the property owner. The moment they know foreclosure is getting ready to happen

Steve: Mhmm.

Logan: We're looking at that date in the docket, and we're now calling.

Steve: Gotcha.

Logan: So we're before the people calling before the tax sale, but right after the sheriff leaves their house.

Steve: Got it. So what are you guys looking at to pull that record?

Logan: There's a public a public, open web open source website that it's a docket search.

Steve: Mhmm.

Logan: In our area, it's the district court that records all the tax lawsuits. And we literally go in and type in Bexar County, which their county, as a plaintiff.

Steve: Mhmm.

Logan: And the defendant is all these people. Yeah. So, generally, the counties don't sue people. In this case, it's generally tax lawsuits.

Steve: Gotcha. And are you only in Texas?

Logan: Yeah. Yeah.

Steve: Because I think, you and uncle Carl

Logan: Oh, Carl's in North Carolina. In North Carolina. Yeah.

Steve: He's in yeah. South Carolina. I think it's like, because because I think you guys do something similar where you guys love dirty title.

Logan: The messes. Yeah. Yeah. I like Carl. He's a great guy.

Steve: Yeah.

Logan: He's a wild character.

Steve: Wild character. You got another one, a 99 acre tract of land in Austin. So what what's the story with that one? Most business owners waste their time and money on solutions that never fix the root problems. They'll address all the symptoms due to slow revenue.

And because they're only fixing the consequences, the real problem stays hidden and the cycle of wasting time and money continues. It's like having a lingering headache that won't go away despite trying every over the counter medicine, when in reality, should have just gone to the doctor and had them figure out exactly what was causing the headache. And that's what's so difficult about business. You can see and feel the symptoms and yet struggle to find it. Now imagine you can find a prescription that doesn't just mask the symptoms but actually addresses the root cause.

Where would your business be if you address that right now? That's what our sales event is about. Your marketing doesn't suck. Your leads aren't bad, and your operations aren't terrible. It's that you haven't addressed what actually makes you money in wholesale, which is the conversations you have with homeowners.

It's critical that you build trust with sellers, demonstrate that you fully understand their situation, know exactly what's keeping them up at night, and paint the ideal outcome that leads them to a better future by working with you. That's what it takes to get signed contracts and keep your business going. Simply put, at our event, you'll walk away with the framework, phrases, questions, documents, and process to close more sales and buy more houses. Join the hundreds of others who've come to our live event and dramatically grown their business. Our event is happening soon and is available for you to join only if you're willing to take the pill.

Logan: This one is a combination of a a a moderate level of distress on the acquisition side. Wholesaling played a factor in it, and then our just general ability to do research and think critically and take action is another part of it. Mhmm. These folks, had been under contract with a big developer for two years. They were collecting hard earnest money payments.

And when interest rates shot up, this was their inheritance. They were planning on making $4,000,000 on this thing, and the big builder cut the contract and walked away when interest rate shot up last year.

Steve: So they're building a property.

Logan: Well, they weren't building it. Okay. The developer was a large national home builder, and they've been under contract doing the entitlements.

Steve: Mhmm.

Logan: There were four phases to this development. This was the fourth phase. The fourth the last phases are the most expensive because they develop in. Mhmm. They have to carry that when it's the very last set of houses to build and sell.

Steve: Mhmm.

Logan: So a lot of the national builders cut the last few phases when interest rate shot up last year because they didn't know what's happening.

Steve: Mhmm.

Logan: And these people's contract got cut. Interest rates shot through the roof. Now they're like, oh, great. Do we have to lower the price? When are we gonna get our money?

It took two years for them. They didn't close. When are we getting next? They were moving. They're getting ready to retire.

Like, it was a tough spot for them. One of my guys called them literally the month after this contract fell apart, and they said, we'll give it to you for the same price we contracted the National Builder two years ago, which was 4 and a half million bucks. More than I was able to pay for in cash at that moment. Mhmm. And then I had someone that was gonna buy it for me for 6.

So we're gonna wholesale this thing 6 and a half. We're gonna make $2,000,000 on a wholesale.

Steve: Mhmm.

Logan: The buyer out of Houston calls me the day before he's gonna send me the contract. We already orally agreed and reduces his price by a million dollars. I just hang up. He calls right back. We got disconnected.

No. We didn't. Click. That's it. I wanna say some choice words right now, but I didn't.

Anyway, he says, I'm coming tomorrow to San Antonio. I'm gonna talk. We're gonna get this figured out. And I was like, no. We're not.

Save your time. During that process, I thought, okay. If he shows up, we still need to talk through this. And it was clearly a development play. That's what I was starting to learn because the builder had it before me.

Mhmm. So we called a local developer, and he worked for one of the big national firms and asked him to help us understand this and pitch it to these guys so we could get our price restored Mhmm. And give these buyers the confidence in it. While we were talking to this guy, we realized he worked for the National Home Builder that was in contract with us beforehand Yeah. And he just left the company to go develop on his own.

Steve: Perfect.

Logan: So when this happens, I say, hold on a minute. Tell me what this is worth. He said, we could sell it to any of the top five large home builders in this area for $20,000,000. Like, woah. Woah.

Woah. What am I missing here? And he said, you need to buy the 26 acres next to us. That'll make your 75 acres and the 26 seventy four and twenty six, a 100. Mhmm.

So you just spend another 2,000,000. So now it's not 4 or 6.

Steve: Mhmm.

Logan: And it's gonna cost you 1,000,000 to complete the entitlements with engineering and legal. But once you do that, you can sell the land with the development agreement for $20,000,000 to these builders, and then you also can create a mud, which in Texas, it's a utility district. We can collect some

Steve: Yeah.

Logan: Revenue, and that mud will be worth 8,000,000. So calls got back from Houston and said, don't call me anymore. We got this figured out. Yeah. I go back to my the two partners here in the office.

I'm like, we gotta pay for this, man. They're like, what are you talking about? This is more than we spent on anyone deal ever. Called a couple buddies of mine and said, y'all wanna come in as equity partners. We're closing on this thing in, like, sixty days at this point.

And the guys were like, yep. I love you. I know you. I trust you. It's the first time you ever raised money.

I'm glad you called me first. We're in.

Steve: Yeah. Do

Logan: you want me to finish telling you about the rest of the deal? No. We'll send you money. So we closed on it. Planning and zoning has approved it.

We get city council approval in the next two, three weeks. Mhmm. And we're ready to start marketing and drawing a preliminary plat. Yeah. So probably by the end of this year, we end of this year or early next year, we sell it.

Steve: Yeah. In pretty good spot.

Logan: And it so this these are the opportunities that you've got when a market falls apart Mhmm. And you've got some available cash and access to resources. Buy. Yeah. And you're also willing to step back and say, hold on.

This is a wholesale deal. Let's do some research. Should it be a wholesale deal? Should we buy it? Really methodical.

But, I mean, these are, like, career changing this is a career changing deal for us.

Steve: Absolutely. You can look at it. What's the best play?

Logan: Yeah. And there are folks out there that would listen to this right now and say, this sounds so complicated. I don't even know that I could do that. It sounds like it's over my head. Where do I start?

You know what I did when I was in that same exact spot six months ago? I said, who do I know that knows this stuff? I started calling them. So there are people out there that might find themselves in spot? Call me.

Or maybe don't call me. Call someone like me. Yeah. Your resources are how something like this is gonna turn your couple million dollars into a life changing event.

Steve: Yeah. That's amazing. So what was the story with the Houston guy that wanted to do their price drop?

Logan: Man, that dude has been calling us. They're a younger group putting together a bunch of investment money from India. They're from India and had a lot of relatives over here in businesses, and they're pulling their money to do deals and getting some management fees. And the guy realized he had a good deal in front of him, but he wasn't quite sure how good it was. Mhmm.

And he was literally picking at us over pennies, relatively speaking. A million dollars isn't pennies, but in the scope of this thing Mhmm. It's it's immaterial.

Steve: So, like, do you think he knew what he had and he got cute?

Logan: No. I think he had a pretty good idea, and he was close. Mhmm. But I around that time, I'd introduced him to the developer because I was gonna use have him help us explain it to him. Mhmm.

And once he understood the numbers, he came back and told us he'd give us the full amount. And at this point, I'm, like, sick of his calls. Then he starts offering over what his original offer was. And finally, I was just upfront. I said, dude, I realized this is possibly $30,000,000 deal, and you're trying to save yourself a million dollars.

I'm thankful you didn't, but we're literally closing in a couple like, a month. Yeah. I'm buying this, and I'm not gonna walk away from it. And then, of course, she's like, okay. Well, if you'd like some equity and all this other stuff.

I'm like, man, I'm busy.

Steve: And then, the third one. So, 8,000 square foot warehouse. What's the story with that one?

Logan: That one came from god, this sounds funny. Here, I recognize this tired landlord. Mhmm. Literally a tired landlord. One of my favorite asset classes is metal buildings, warehouses, things like that.

They're very simple. If you look at the office you're in now, you've got carpet, you've got drywall, you've got drop ceilings, you've got all kinds of electrical lights, you've got air conditioners. In a metal building, you don't have that. Mhmm. You got red iron that you can see.

You've got metal r panel, which is just that sheeting, the metal sheeting on the outside, which you can see. You have a concrete floor, which you can see, and you have electrical, which you can see. I literally inspect these buildings in ten minutes myself. I'll walk around with

Steve: shells.

Logan: Yeah. Metal warehouse, just a metal building. Mhmm. But the utility for those is so high. People will use them for landscape companies, automotive shops.

The list goes on. Window tint shops. They'll put daycares in them and finish them out. It's really wild. Mhmm.

But that shell has a lot of utility, and you'd be surprised how many end users there are for it. So I turned I stumbled onto one of them several years ago, and that was a deal changer, which would really got me in a commercial. Mhmm. In this particular one, hired landlord. We called him at the right time.

He had a deadbeat tenant who needed to get out. So this is was occupied? Right. Half.

Steve: Half. Okay.

Logan: I mean, the guy's paying, like, $600 a month. Market rate is $10,000 a month on this thing. And this guy's paying 6 or $800. This is what you'll see in commercial, the distress, when you have a tenant in a lease that you can't get him out of. Mhmm.

You got a landlord who's tired. He's paying his taxes, but not the month they're due, like, the next month. It's just things are slowly getting out of hand.

Steve: Yeah.

Logan: And our we actually bursting

Steve: at the seams.

Logan: Yeah. It just quite hadn't busted yet. It's pulled over. We asked him how much he wanted. He said $6.50.

I said, okay. And the gold on this is, he's owned it for ten years. He paid $3.75 or 400. Mhmm. He's making money selling it to me.

Mhmm. And the extra gold, like, the sprinkles on top of the gold, is once you get a tenant in there, on the income model, it's worth about 1.2 to 1.5.

Steve: Right.

Logan: So he's making money. He's happy. Mhmm. I'm making money. I'm happy.

Steve: Yeah.

Logan: This sounds a lot different than these single family distressed deals where you're like duking it out to the closing table, doesn't it?

Steve: Yeah. It's very different. Yeah. Particularly with the, entire landlord in, it's a win win where they feel like they're winning.

Logan: Makes me happy. Yeah.

Steve: How did you come across that deal again?

Logan: These are cold calls.

Steve: Cold calls.

Logan: Yeah. Just so a lot of times, you're pulling a list that's looking specifically for distress.

Steve: Mhmm.

Logan: In this case, we look for an asset class. So that that that list was metal building slash warehouse under 20,000 square feet. Mhmm. We filtered it.

Steve: Yeah.

Logan: And we're just calling and we're just listening to folks. You know, you'll hear one in a 100 calls has some level of pressure, and we want that. Mhmm. Maybe one in 20 has an interest in selling, and maybe one in 50 has an interest in selling, and they're in the ballpark on the price. Right.

So you kinda work through that, but we did recognize the early signs of distress. And I believe that's why he wasn't gonna be aggressive and try to price it really high and wait for a long time. He's like, let me get out. Mhmm. So he was he was wise in that regard, and we were happy.

Steve: If he didn't work with you, was it one where he had a matter of months if he had to do something?

Logan: I don't think he was there. He was paying his taxes just a little late, but he's figuring out how to pay them. Got it. I think his biggest issue is, his tenant had a longer lease, and his tenant was just sitting in there, paying this crummy rent rate very late. This guy was a nice guy.

In in this case, I always always say I'm fair but firm. Mhmm. This dude's got a smoking rent rate. He should be paying rent in advance before he loses his location to do business. Mhmm.

So I sent him a demand letter that says, you're in breach. Get out. Mhmm. And then he comes back and says, I'll pay on time. And I'm not gonna take I'm not gonna relent on that default.

Once you've accelerated a lease Mhmm. If you give them an opportunity to catch up and stay, they can do it. Right. Once I've gotten a chance to accelerate them, you're done. You're out.

Yeah. So once I got that opportunity, he was, like, just a couple days beyond where I could accelerate. Done. Mhmm. Got them out.

Steve: Using legal definitions here for everyone, so accelerate?

Logan: Yeah. So accelerate is once you're beyond the past of remediation. You the lender will no longer accept any more payments, no more reinstatements. You're accelerated, and it's basically paid in full, get out work it out.

Steve: Exactly. So with commercial leases with acceleration, do they pay the whole deal, like, entire balance?

Logan: So there's a couple ways to do it. You get in a spot where if you demand, you can sue for the balance. Like, you might have four years left on it, and you can sue for that. The problem is you have to let them stay. Yeah.

In this case, I'm gonna terminate them, and they don't owe me anything beyond that. Mhmm. It's only, like, what they're delinquent on now. Right. So you don't really you're not really gonna make any money on that situation, but you're making money on the property.

Steve: So about so you can increase the rent, so you can increase the value. Bingo. So Yeah.

Logan: That deal right there is gonna rent well, actually, I have a tenant now. It's a $120,000 a year, and I've spent $6.50. I spent another $100 on tenant improvements and broker fees. Mhmm. 750,000, I think, is where I'm at.

And then you got a 120,000 to rent. Dude, you're talking 15 to 20% returns.

Steve: Yeah. Works out pretty good. So with your deals, are you working with, equity partners? You're getting private money? You're getting

Logan: No. On these deals, these are all in house. You know, the benefit the benefit of having other financially responsible folks is, you know, we're taking a salary of 1 or $200,000 a year and living on it. The remaining amount of money that is earned in these businesses stays in to grow, to buy more assets. Now we're gonna hit a we'll hit a critical mass fairly soon where you have more excess cash than your needs are for the next deal, so you'll start making larger draws to the partners.

Mhmm. But the big deal I told you about, that's the 237 house development track. Mhmm. That one I took on some, friends as equity partners. Outside of that, it's been only operating partners money.

Steve: Gotcha.

Logan: Sometimes we use bank money. Mhmm.

Steve: And then just something to touch on. You mentioned a moment ago, entitlements. And that's something that, we've talked about a few times on the show. But, specifically, last week, we had, Anthony Gaona and and Daniel Martinez.

Logan: Oh, yeah.

Steve: Right? And they're doing the same thing. Right? They're looking as, like, should I entitle this or not entitle this? So entitlement is just one of those, sexy things that if you're in land, you can kinda see these opportunities.

But if you're not in land

Logan: You know what it is. What is that big word?

Steve: Right. So entitlement is it's a funny thing because, there are a lot of people doing really, really well with entitlements, but not a lot of people talking about it. Right? Which I think we're gonna talk about later on about how they can learn more about this.

Logan: Yeah. The market is huge. Yeah. In summary, what an entitlement is is it says, this is what you can do with the land. But if you have undeveloped, unzoned, unimproved land that's near or in a municipality, a municipality won't let you just slam 200 houses on it.

Mhmm. You've gotta get an agreement with them to extend utilities. They're gonna agree to overlay a new zoning on it, and you want it to match with your density of housing. Mhmm. It's what you get is a big document.

There's a couple 100 pages called development agreement, a DA. It's a negotiation between you and them. We'll allow you to get this. We'll give this. We're having to give, like, two acres in the back part of ours.

Give it to the city so they can put a water, tower back there. Mhmm. Because they need a water tower. It's high elevation on that road. They got nowhere else, and no one else will sell them land.

So it's basically a bartering chip. We needed this water tower, and they're just looking at you. You're like, I guess you get a water tower. You're gonna sign my deal. Right.

That's what the entitlement process is.

Steve: Yeah. And it's interesting because, like, why entitle, and why would someone buy entitled land when they can just buy the land? Right? So, from your perspective, we were saying the market's pretty good for entitlements.

Logan: I know exactly why. So Wall Street has told the big builders by how they support their share price, your builders, like Lennar, Meritage, these guys. Wall Street has told them, you are builders. That is it. You're doing nothing more.

You're not carrying assets long term with a very small exception. Mhmm. And if you do, you have to have a certain internal rate of return to match what we expect from you. If it doesn't match that, you do not do it. Mhmm.

And that's created an industry over here for folks like me to buy land, entitle it, and then sell it to one of these builders. So they literally go out there, start filing permits in the next couple weeks.

Steve: Yeah.

Logan: And they don't have to carry on the books for two years.

Steve: Yeah. It's fascinating. So, like, I get to come in as a developer. Right? I was gonna pretend, you know, this other industry.

I only develop. I only do what I'm good at.

Logan: That's right.

Steve: Let these other guys get all the way to a point of where I can put a shovel on the ground, and you get paid really well to get to a point where you put a shovel on the ground.

Logan: Yeah. You know, there's a lot of risk. It's really hard to use debt on deals like this unless you're a very credit worthy person. And even if you are, you realize you're gonna have to deal with some debt service.

Steve: Mhmm.

Logan: So there's risk. I mean, how many people can rip a check for 6 and a half million to buy land? Not many. So the risk goes up.

Steve: Mhmm.

Logan: And if we get this wrong and can't get the development agreement approved, well, now you're valuing that not on 237 pad sites. You're now valuing as basically rural land. Yeah. So I paid what does that come out to be? 60,000 an acre more or less?

Dude, that ain't cheap land, man.

Steve: It's not. And that's kinda what we're talking about last week is, there's another investor I'm familiar with. And, basically, he buys these land on, with the due diligence.

Logan: And the

Steve: due diligence is, like, if I can't get this entitled, you get the land back.

Logan: That's how most so okay. So he's if he's closing on it that way, that's unique. Most times, it'll happen is guys will contract for twelve months or sometimes twenty four months, and you have to make hard earnest money payments. Mhmm. So I'm buying extensions.

Mhmm. And I don't get refunded that.

Steve: No. That's that's bent.

Logan: That's yeah. That's that's your ticket to the dance. Right. Hopefully, you're a good dancer, but that's your ticket. You gotta pay to go in.

Steve: You gotta pay to go in.

Logan: And there may be someone to dance with you.

Steve: But you're not on the hook for the entire piece of land if it doesn't work.

Logan: A lot of deals like this, you can spend 2 to $300 Right. In expenses and in earnest money and engineering and whatnot.

Steve: Yeah.

Logan: And if you can't get the deal approved or you can't get someone to buy it, you walk, and you burn a couple $100. Right. But in that case, you had a shot at $5,000,000.

Steve: Exactly.

Logan: And all it takes is a couple deals like that to say, I'm now willing to commit several million, $500, $500, $500 because I just made 10. Mhmm. I'll dump 3,000,000 in new projects and still have six or seven left.

Steve: Mhmm.

Logan: If some of those don't work, that's okay. You have some shrink budget, and it really works.

Steve: Right. That's a fast enough

Logan: you don't go buy the new house in the Lambo.

Steve: Yeah. So it's a it's a very, very interesting model. And then one thing I really like that you said a moment ago was that a lot of people listening are a lot closer to doing what you're doing but don't realize it.

Logan: Yeah. It's huge.

Steve: Yeah. Do you wanna expand upon that?

Logan: Yeah, Steve. It sounds scary. You know, the words we're using are big words.

Steve: Mhmm.

Logan: It sounds like a really complicated process, but there's only one competency that I've learned every detail about. That's the curative title work. That's that's my core competency.

Steve: Mhmm.

Logan: All this other stuff, I've got experts. I've got a partner. I bring somebody on. I pay a consultant. Half of this stuff, I don't know anything about.

Right. But if I can find the right dude and give him some money or give him some equity, they tell me this works and this is how. Mhmm. So I encourage folks to be more resourceful than bright. You don't have to go learn it all.

Steve: Mhmm.

Logan: I didn't go to law school. I didn't learn all this stuff that way. Mhmm. I learned picking up in the field, hiring great people. Yeah.

So that's why I encourage folks. When you're in a deal that looks something like this, start looking at your resources. 50% of my problems are solved in my phone.

Steve: Mhmm. Yeah. Well, I mean, doctor Ben Hardy wrote the book. Right? Who, not how?

It's that.

Logan: Oh, bingo. Yeah.

Steve: Right? Everyone's always trying to figure out, well, how can I do this? Like, you don't have to be the one that figures it out.

Logan: If I could find a a video on my phone of my screen, I have a sticky note on the bottom of my screen that says, who, comma, not how.

Steve: Right. Yep. And it was one of the best lessons I I I took, when I took strategic coach many, many years ago. So, you're doing an event in Dallas. Yes.

Talk to me about that.

Logan: April 6, which is a Saturday coming up in maybe six weeks, I think. Mhmm. It's a distressed property acquisition workshop. It's gonna be eight hours. Me, a lot of guys I work with, several other experts.

I've got some attorneys, some surveyors. Gonna have an incredible group of folks. We're gonna spend eight hours going through this entire business model, how to understand it, what the deals look like, how to find them, how to negotiate them, what are the kind of trades you want, how to do them as JVs with us, or find your own partners to do them. It's an incredible day. You get to meet awesome people in the industry, and I'm a 100% certain there is not another group of people like this of this size that will meet together anywhere in The United States.

Mhmm. Absolutely.

Steve: Yeah.

Logan: So for the price of a pair of Air Jordans, you basically get to learn this entire thing top and bottom. And if you don't figure out how to do it on your own, you know how to look at a deal and refer it to someone for a really big fee. To me, that's 50% of the people. The other 50% really wanna learn the details. Mhmm.

Steve: But I

Logan: think it's huge. If you're in single family, if you're in rural land, and you have had deals that couldn't close, then you need to come.

Steve: Yeah. But, again, it goes back to, who, not how. And, I got a friend, Chris Rude. You know, he's always talking about, like, there's nothing wrong with buying friends. Right?

Pay to be in the room to be surrounded by other people doing the things you want to do. There's no shame in that. Like, there's this ego thing where we kinda stop. It's like, oh, I don't wanna pay that. Right?

Logan: Yeah.

Steve: But to be in the room with other people doing it. Right? Even if it's not you, I I've held I've held a lot of events over the years. The very first event, those people are still collaborating. They're still doing deals together.

I think, you're in San Antonio, so JR. Yeah. Right? Yeah. He came to our first event.

Oh, wow. Like, these people are still doing deals together. So, like, I couldn't, I can't stress enough. Right? And you're gonna get into everything about your business.

So can you elaborate with me so you're gonna you're gonna share everything? What does that mean you're gonna share everything? When you started your real estate business, it was with the dream to change the world and make an impact. The reality is you might not be near that. If you're like many investors, you might be frustrated.

You just can't succeed in getting your salespeople to do what they know that they should do. They operate on their own terms. Meaning, they don't follow your process that you know produces consistent results. So each month feels like a roller coaster because revenue is coming in inconsistently. How relieving would it be if your salespeople did follow your proven process, were receptive to feedback and training, and could be held accountable to the results that leads to their success and your success?

Would your company stop riding in the roller coaster of revenue, frustration, and mental drain? And that's why we brought in Wren Bartlett. He's built a business that's wholesaled a 100 plus houses a month. The people he brings into his business are bought into the process. They have a deep understanding of their role and are excited to be held accountable because as a business owner, he truly knows their deeper why so that we can demonstrate that our company is here to provide for their true purpose.

If you like to finally stop dreading managing people who don't follow a process, produce inconsistent results, and aren't bought into your company, sign up for our sales leadership program to end the emotional stress of inconsistent results, and finally have a fulfilling business working with people you want to be around.

Logan: So I'm a very transparent person. There's nothing that I withhold. A lot of folks do events, and you get there, and they tell you some fun stuff. They hype you up, and they try to sell you on the three day package. And then the coaching, that ain't this.

Yeah. I explained what the different lead types look like, how I find them. I'm gonna have my laptop up. This is gonna be a working session. Mhmm.

I'm I'm gonna have other experts there. So we're gonna talk about every single detail, what they look like, how to find them. I'm gonna go through docket searching, like, live with my computer there, and I'll bring my chair down and sit in the middle of everybody, so we're looking at this massive screen together, figuring out what these look like, figuring out how to pay for them Mhmm. How we negotiate them. I've got recorded calls that are live from it'd be like a sales training.

Yeah.

Steve: I mean,

Logan: we have forty five minutes worth of calls that we're gonna be listening to together and talking about as a group. Like, it's a workshop of any workshop.

Steve: Yeah.

Logan: But I think a person can walk away from this with a complete thorough understanding

Steve: Mhmm. Of

Logan: you know, what we're talking about now is very conceptual, and people are excited. They're like, dude, you make tons of money, and Mhmm. It's so smart. No one else does it, and that's great. But when you say how, we can talk about this a little bit.

You got me for eight hours talking at this speed, dude. You get it all. Yeah. And there's no question I will not ask when it comes to what you make, how you spend it, the real problems you had. When you get into the litigation.

And, I mean, I've got two dozen lawsuits going almost at any time right now. It takes a lot to make me nervous. Every once in a while, it happens. I'll explain any of those questions. I won't hide in.

Steve: Yeah. And then, are you coaching people as well?

Logan: You know, yeah. The last couple years, I've started doing, like, small kind of boutique type coaching. Five to eight people groups. It's usually a session a year. Yeah.

You know, we'll spend twelve to sixteen weeks going through the educational part, and then everybody's on the phones. And I'll spend the rest of the year doing deal reviews by Zoom. Mhmm. You know, I'm wrapping up, a session right now and, you know, I one of the guys is working on a deal. It's we're gonna sell for $600.

Should be ready to sell next week. We're in this one all in for 70. Coaching student and I'm JVing with him because he's like he's been in here, and he's afraid to spend the 70. I said, dude, I'm happy to JV. And he goes, are you sure?

Yeah. I'm gonna spend $70. You're gonna make $2.50. I'm gonna make $2.50.

Steve: Yeah. It's

Logan: a smoking deal. There's another one we just picked up from another guy that that deal's 150, and he's bought his first 25% share for $500. Mhmm. There's 20,000 owed in taxes. I'm if he doesn't net 6 figures on this deal, I'm gonna be, like, astounded.

Mhmm. That's the kind of deals we do together, and a lot of the folks elect to be a JV partner with me.

Steve: Yeah.

Logan: So I'll do it with them because that way I prove to you feel really good about this level of risk.

Steve: Yeah. Well and you're a capital partner. Right.

Logan: Yeah. That's hard to find these days when you find a technician who and it's me. It's not someone in my office. So it is me. Mhmm.

So I'm willing to be a technician and a capital partner. That's hard.

Steve: Well, especially because you're willing to poke holes in the you can say it like this is why it's not a good deal or here's where this is risky. Right? Whereas someone that's not a technician who hasn't done it.

Logan: Yeah. I will put my money where my mouth is. I just won't poop on your deals. If it's good, I'm going in.

Steve: Yeah. Oh, I love that. So what is your biggest struggle today?

Logan: You know, right now, I'm in a really happy place because we had a lot of work to do last year, man. We were working twice as hard for half the money. You know, when things are good and you're just raking in money and everybody's happy and your problems don't seem that big, it's it's a fun place to be. Although you have issues, but when things slow down, all your little problems well, they're not little problems. They're big.

They just look little because you have this revenue. Mhmm. It was kinda covering them all up. Right. Those little problems, they they show what their real size is.

And last year was tough, man. Mhmm. We had we had to work together a lot of our partners on a lot of things we didn't expect to happen. There's a lot of deal level stuff. There's financing level stuff.

And I say this apprehensively. I think we're pulling out of that Mhmm. To a point where the monthly cash flow meetings aren't happening or the we're doing weekly cash flow meetings for a little while.

Steve: Mhmm.

Logan: That has not been our business ever.

Steve: Yeah.

Logan: That was happening, and we're engaging in great deals. But, man, we're watching the cash close. We had to. That's done. We've now canceled our weekly cash flow meetings and our monthly cash flow meetings.

Yeah. Everybody's starting to feel more satisfied. Like, we're in a good spot. I'm not gonna say we don't have problems, but I have to think about it for a while to really tell you on the matter right now. So

Steve: Yeah. Well

Logan: I'm happy.

Steve: I'm looking forward to those days. Because we're still looking at the finances every week. Right? We're still reviewing the balance sheets. We're still looking at the p and l.

Right? We're still, like, looking at, like, alright. Well, how much money came in? How much money went out? So we can project what our runway is if nothing else comes out.

Logan: So in your retail brokerage business, right now, your industry is under fire. Yeah. So I'm over here buying, like, problem properties for 20¢ on the dollar. That's not under fire, and it will never be under fire.

Steve: Yeah.

Logan: So once we got out of that really strange spot, at that point, I say, dude, we're great. Let's go. Mhmm. But I think your industry is gonna have a little bit more time.

Steve: Well, we'll see. We'll see what happens, right, with the with the, single family homes and so on. But, yeah, like, I'm looking forward to have it being monthly versus weekly. What was the biggest lesson you learned last year? So you learned a lot of leadership lessons.

What was the biggest lesson you learned last year?

Logan: You know, I did this on the front end as I was recruiting people. And as things got going, everybody's, for lack of better term, sat and happy. Things are going great. And when things get tough again, you have to sit down and talk to people. You have to get connected again.

And we almost got disconnected in a way because we're all just running our section of the business and I spent a lot of time with people again talking about all the details. What's bothering you personally? What's the problem you're having? Oh, that sales manager? Oh, that salesperson?

Oh, not that salesperson? Half of your sales team? So kinda just connecting closer with the operating partners again, that was that was a big one. That was a really big one.

Steve: Yeah. And I think we all had to. Right? The ones that made it.

Logan: Had to really

Steve: they had to really buckle down and work, close knit together.

Logan: Yeah. Roll your sleeves up. Get back to work.

Steve: Yeah. So what are some last thoughts you'd like to leave all the listeners with?

Logan: You know, I'd like to encourage people to understand that you're capable of far more than you believe you really are. I have a close friend out here in Phoenix. And just several years ago, he just told me I wasn't thinking big enough. And it sounds cliche, and you hear it all the time. But I was really inspired by some of the stuff he was doing.

Mhmm. And I went back home and said, we're not gonna do x. We're gonna do two x. Mhmm. And I'll be damned.

It didn't take long for that to happen. You've gotta invest more resources. You have to be a little bit more aggressive, and you really have to push, but you're one x is no different than two x. It's really not. And once you start to understand that concept, you realize it's easier than I expected it was.

You're capable of a lot more than you think you are. When you look at deals like this, if I were to look back ten years ago and you were to tell me that I was buying $2,000,000 apartment complexes through litigation for a million dollars and all, you know, things like this, I wouldn't have believed it. Mhmm. But it just happened a step at a time along the way, and one by one, it got there. And I'm no brighter or harder working than probably half the people that are watching today.

Mhmm. But the message is to get out there, put in the work, ask the questions, build a lot of relationships. You'll be surprised, man. You're gonna be in that big old house with all those fancy cars, all this money sitting around. You can turn your life around in five years.

Yeah. So get out there and do it.

Steve: Absolutely. So we're gonna post a link to your workshop, in the show notes. How can someone get a hold of you if they wanna connect with you?

Logan: Great place is Instagram. If it's not me, it's someone in my office catching that really quickly. So Logan Fulmer. Find me on Instagram. Send us a message.

Mhmm. The other way is office@arpusa.com. Somebody in my office catches that quickly. Mhmm. So you'll get to me or someone quick.

Steve: Yeah. So it's not Logan Bentley Fulmer. It's just Logan Fulmer. Right. We dropped the Bentley?

Logan: Right. Right. Yeah. I did that, actually. You know, for Instagram, I had a a moniker and some branding, and finally, I said, man, it's Logan.

Come find me. Logan Fulmer.

Steve: Oh, I mean, real quick. We talked about it before the show. So why don't you share with everyone why? Because that might be important for them to understand your journey.

Logan: You know, I've seen this with other folks. I've seen brands change, and our first brand name was Ezy House Fire San Antonio. Mhmm. And it was, like, the best thing. Like, this is where we're headed.

Like, this is who we are. And I look back now, and I laugh at it. I'm like, dude, that sounds, like, so elementary. And

Steve: Mhmm.

Logan: You know, that's how the evolution happens. But I did notice every six to twelve months, our business has taken a slight turn, and it's it's veering a different way because it's growing and getting smarter. And I started to kinda back away from some of this specific branding. Oh, we do have a brand asset resolution partners. Mhmm.

You know, we've got that. You need something on your building. You need something on your business card. But at the end of the day, folks know Logan Former is the guy there.

Steve: Mhmm.

Logan: So I started to drop some of that stuff and just say, hey. It's me.

Steve: Yeah. Awesome. Appreciate it. Thank you very much.

Logan: It's always a pleasure, Steve.

Steve: Definitely. Thank you guys for watching, and we'll see you guys next time.

Logan: Steve train. Jump on the Steve train. We real estate disrupt us.