Patrick Leganzoff. Homeless Drug Addict to 8-Figure Companies

Patrick Leganzoff: So just with the all of the drug use, it comes to a point, like I told you, you have to, flip this for this, get this money over here. This person is trying to get over on you. This person is stealing from you. This person wants you dead. This person it's just, craziness of a world, and it came to a point where I was sick and tired of being sick and tired.

Mhmm. My mom so I we kinda skipped over that. So my mom, she became a mailman, in her active addiction, and I was on intense probation. She was taking mail home, and I was up all night on drugs. And I was acting she was about to go to work.

All of a sudden, I hear glass breaking, so I act like I'm sleeping. And I woke up with four guns pointing to my head saying don't move. My mom got caught with a lot of drugs on her, and they, hauled out eight bag black bags, garbage bags full of mail. And they let her stay, but then she got sentenced to federal time two years. Mhmm.

And I lived with my grandma. Once my mom was out of the picture, I turned grandma's house into the trap house. My grandma passes away. I get kicked out of the house. Now I'm living on the street again.

I'm homeless again. The lady I was dating at the time, thank god I was, I was in my girlfriend's at the time, backyard, and I was sleeping. And I got, like, tapped on my chest with a gun to my head and said, if you weren't at my family's house right now, you'd be dead.

Steve Trang: Hey, everybody. Thank you for joining us for today's episode of Real Estate Disruptors. So we got Patrick Legonsoff with sober investor, and Patrick is yet one more player in the Phoenix market. We're gonna talk about how he went from a homeless drug addict to owning multiple 8 figure businesses. Now I'm on a mission to create a 100 millionaires.

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That way we can all grow together. You ready? Alright. So we typically start off with what got you in a real estate, but you've got a very interesting background. Right?

We really went hard on it on on the title. So, when you and I were talking, you've had a pretty rough upbringing. So homeless, drug addict, felon, where do we start?

Patrick: Yeah. Where do we start at? So do you want me to go from the childhood? Where would you like me to start at?

Steve: Well, let's start off in Maryville. I think that's what we we have in the notes.

Patrick: Yeah. So Maryville, I grew up, I moved there, from Colorado with my mom when I was one. Broken home. Mom, dad separated. We were living with my, grandmother.

And, to me, it was like a normal normal childhood. And then once I got older, started seeing more things. All of my best friends down the street, they were all three years older than me. So I got introduced to everything at a very young age. Mhmm.

I started smoking weed at, like, age 10 and 10. Age 10. And it was my best friend's dad who yeah. And one time, my my mom was in the hospital, and, I knew that she smoked weed because I can smell it. So I went in there, tried to find some, found something else, didn't know what it was, took it to the older friends.

They gave me money for it. And, that night, I spent the night at a friend's house, and, I woke up and all of them were acting really weird. I'm like, what is going on? They're like, try this.

Steve: I was like,

Patrick: well, thank you. Not for me. Three more times, peer pressure kicked in, and I tried meth for the first time at age 11, and, my life changed forever at that at that point, man.

Steve: That was the thing you got from your mom?

Patrick: I've come coming to find out that's what, that I got from my mom. Now that I know everybody who was involved in my life Mhmm. Down to my babysitter, down to the lady who cut my hair, anybody who was involved that my mom brought around that was an adult, she was the dealer on the block, and she was dealing to all of these individuals. Your mom

Steve: was a supplier? Yes. Got it. Yes. Okay.

So right pretty early in your life, you said you were using it. I mean and and it changed your life.

Patrick: Mhmm.

Steve: In what ways did this change your life?

Patrick: When I first started out, it was, I felt like Superman invincible and ready to take on the world and very confident in everything that I was doing, but it it robbed me of my childhood. Being addicted to, a hard drug at such a young age, you can't go get a job, to be able to supply your habits. So you have to come up with creative ways to, make money.

Steve: It'd be pretty hard to find that.

Patrick: Yes. Legally.

Steve: Yeah.

Patrick: So, I was still I mean, I was in and out of juvenile every summer from, age, like, 12 to 18. Every summer, I would go to juvenile. I spent probably six, fourth of July's, locked in a cell as a juvenile. So that's why I celebrate it heavily now. And, I was still on the basketball team, still playing basketball, but I just wasn't doing hanging out with the your normal crowd.

So it definitely stripped me of my childhood because you come an adult really quick Mhmm. With the people that you're associating with to get drugs and get the creative ways you come up with making money to get those drugs.

Steve: What are some of those creative ways?

Patrick: At a very young age, I was stealing cars, man. I was stealing, cars every single night. The people that I was involved with, there was a thing called jingler keys back then. One key can open up almost any vehicle, and, I was definitely doing that. And then you just find, just hustles, man.

People that would go steal stuff from stores or go steal stuff from people. If I had the drugs, I would trade them drugs for the thing, and then I would go sell the thing. And it was just a revolving door of everyday life of just doing that.

Steve: You knew how to hustle?

Patrick: 100%. You have to.

Steve: How much do you think that's played a factor in your in your life?

Patrick: It's a huge factor. Just just being street smart in general, learning that side of things, knowing, when people do stuff intentionally, when they're trying to use you, when you're whatever the situation is, you get to learn to read people. Mhmm. And that definitely helps in sales and in business. And just being a hustler, I mean, you learn to negotiate and, get more for your stuff and get less for their stuff.

Steve: Mhmm.

Patrick: And, it's definitely it's it's your own business. You're an entrepreneur at age 11, hustling with grown adults, man. It's crazy.

Steve: So and, you know, you guys might be wondering, like, why are we talking about this?

Patrick: You know? Like, it

Steve: seems like an odd topic, and there's, like, a lot of clickbait behind this. But, you know, the reality is, for me, I think there's so much opportunity for everybody. It doesn't matter what your upbringing was. You know, one thing that we hear a lot is like, well, I didn't have a shot because of this, because of that. Right?

I was in this situation or I didn't, you know, we I didn't grow up in the right neighborhoods or whatever. Like, that's the reason why I harp so much on this. And and one of the reasons why I'm actually really opposed to regulating the wholesaling industry, because once you start regulating it, then if you're a felon, you no longer get to do this business. Right? So, like, for me, I I I think everyone should have an opportunity.

And so that's the reason why I'm spending so much time, you know, talking about your background and and how much has affected you.

Patrick: Why does a fell and couldn't do, wholesaling anymore?

Steve: Well, if they regulate it the way they you become a licensed realtor, right, there there are a lot of challenges, a lot of obstacles. Right? Not to say that you couldn't do it. Okay. Right?

You're able to do it, but there are a lot more obstacles. Right? There's a lot more explanations. There's a lot more hurdles you've got to jump through. Right?

So that's the reason why. Right? I think with regulation, it comes more problems. There I mean, good things come from it? Sure.

But there could be a lot of unintended consequences where people well meaning people that have reformed, right, that paid their dues, paid their price, and should have an opportunity to get back to civilization and society. Don't get that opportunity. Right? Like, how hard is it for a convicted felon to get a regular job?

Patrick: It's funny in my experience because my background was in the restaurant industry. Mhmm. Restaurant industries don't do background checks. Restaurants don't. Restaurants don't.

And then, even a hotel, I got a in room dining management position. Yeah. Three time felon.

Steve: Mhmm.

Patrick: Freaking for it was a five diamond resort

Steve: Yeah.

Patrick: Here locally. And then I'm also, again, three time felon, and I did get my real estate license here in Arizona. So, but, yeah, it hasn't stopped me on too many things.

Steve: Mhmm.

Patrick: And I, like, I I started a company my first year sober. So if you're a felon, you can always start a company.

Steve: Or start a company. Right. Start a company. But that's what I'm saying. If there's more regulations, what kind of issues can can arise?

Right? Like, I had, there's a guy I feel terrible about this. I don't remember his name anymore. David something. He was, he was on our basketball team, right, when we're playing intramurals.

He's on our basketball team, played for the cardinals. You know? And he got into a bar fight defending his friend. And after that, he got a convicted for felony, did some time, and couldn't get any kind of jobs that paid him what he was looking to get. Right?

Like, so you're definitely, your options are limited.

Patrick: Yes.

Steve: Right. So, again, that's the reason why I talk about this because I think that I would love for everyone to have the opportunity, and there are some challenges that, present themselves if regulations arise. But, also, you know, your story is inspiring for someone that's like, hey. I can't use I can't be successful because x, y, and z. It's like, no.

Let's talk about all the bad stuff to show that there's opportunity if you want it. Right? So, we talked about the addictions, the felonies, three of them. Yes. You wanna share how you got into those?

Patrick: All three of them were, caught with drugs on me and, distribute. One of them was distribution, a small amount, but most of them were just because I got caught with drugs on me. Nothing else outside of that. I think they are, all three are felony sixes. Mhmm.

But, me wrong place, wrong time. But

Steve: Yeah. What do you mean wrong place, wrong time?

Patrick: I did. They they caught me. So I was at the wrong place at the wrong time. So it's just, me being dumb and carrying stuff, on me and, not caring about the law.

Steve: Right. And then there were stretches of homelessness.

Patrick: Yes. A few times. So, when I was 16, I was kicked out, for the first time. I was homeless there. I was sleeping in abandoned houses, apartments for sale, people's couches, anywhere that would let me, get in, let me sleep.

Mhmm. Came back home. A lot of craziness happened. And then before I went to Tennessee, there were I caught one one more one more charge. And, and then I caught one in Tennessee as well.

Steve: Mhmm. So none of this here is, like, a precursor. Like, okay. Obviously, this guy's gonna be a real estate mogul. No.

Right. So what changed?

Patrick: What changed? So just with the all of the drug use, it comes to a point, like I told you, you have to, flip this for this, get this money over here. This person is trying to get over on you. This person is stealing from you. This person wants you dead.

This person, it's just craziness of a world, and it came to a point where I was sick and tired of being sick and tired. Mhmm. My mom so I we kinda skipped over that. So my mom, she became a mailman, in her active addiction, and I was on intense probation. She was taking mail home.

And one night,

Steve: I was taking mail home

Patrick: Yeah.

Steve: For her own purposes? Okay. The job

Patrick: was too hard for her, so she was burning mail in the backyard, but also taking birthday cards and whatever. And I was up all night on drugs, and I was acting she was about to go to work. All of a sudden, I hear glass breaking, so I act like I'm sleeping. And I woke up with four guns pointing to my head saying don't move. And, I was like, oh my god.

Postal service has their own police depart their own force task force. It says postal on the back.

Steve: Oh, okay.

Patrick: And as soon as I walk out, my intense probation officer is standing there. I was like, what did I do? She's like, it's not you. And I'm like, thank god. My mom got caught with a lot of drugs on her, and they, hauled out eight bag black bags, garbage bags full of mail.

And they let her stay, but then she got sentenced to federal time, two years. Mhmm. And I lived with my grandma. Once my mom was out of the picture, I turned grandma's house into the trap house. My grandma passes away.

I get kicked out of the house. Now I'm living on the street again. I'm homeless again. The lady I was dating at the time, thank God I was. I was in my girlfriend's at the time, backyard, and I was sleeping.

And I got, like, tacked on my chest with a gun to my head and said, if you weren't at my family's house right now, you'd be dead. Somebody who I was competing with was a leader of a gang, and I was dating his niece. And he pretty much said you'd be dead if you weren't here right now or if you weren't at Families. So then I leave. I go to, Tennessee, for a change.

My dad me and my dad were on and off. Mhmm. And, when I got to my dad, he pretty much he was a part of that drug life as well. And he pretty much said you got three weeks, to get a job, get your own place, and get out of here because I got my own life and my little girl's here. And he helped me get the job.

He helped me get the place, and then we started building our relationship back up in, Tennessee.

Steve: Got it. For those that are less familiar with the slang, trap house.

Patrick: Oh, trap house. So my grandmother, she was a larger woman, so she never left her room. So, every room was something different. So, trap house, means a place where people can come get drugs. They could use drugs.

They can come fence their stolen goods. They it's just an a revolving door of a lot of shady,

Steve: cameras.

Patrick: One stop shop, man. And, yeah, it got dicey.

Steve: Yeah. Okay. So you go to Tennessee. Is this when you get clean? Is this when the story turns around?

Patrick: No. No. No. No. I'll fast forward a little bit through this.

So Tennessee, my first job the bartender said, Hey, there's a line of Coke on for you on the toilet in the in the over here and here's a shot. Let's get to work. And I'm like, I've made it. This is the place. So I just went off to the races again out there, just using partying.

And out there, it's no joke. Like, in Memphis, I got held at gunpoint four different times, robbed two times, and I was messing with some bad characters out there. My mom had gotten sober at the time, so, she flew me back out to Arizona. And, I'm still using I'm out here in Arizona, and this is what get introduces me to sober living. I thought it was funny, the funniest thing in the world to go to her job.

She was the manager, and now she lives at a sober living, as the manager on-site manager. And I thought it was funny just to come really messed up, to all the sober people. And while I was there, people, I didn't understand it, but they would slide me their, like, card or their phone number. Hey. If you ever need to talk, here's a number.

Hey. If you ever wanna blah blah blah. And, I continued to use, and then I got sick and tired of being sick and tired, and I didn't wanna do it anymore. One of those phone numbers of those people who slid that number to me, I called it. And she came and picked me up, and, she tried to take me to this detox place.

I thought it was the scariest thing in the world. It's like, I walked in. There was a guy peeing in the corner, people squirming on the floor, and I'm like, this isn't for me. I said, f that. I'm not going.

And then, I woke up because you can't just go to a detox on meth. You have to be the alcohol or something else. So they filled me up with alcohol. So I blacked out and I woke up in the house. I didn't know where I was.

And, like, three or four days later, I got in, put into a inpatient program to, for sobriety and did the whole program, and learned was learning a lot on how to try to live sober.

Steve: That's when you turn things around?

Patrick: That once I got into the program, that's when, I started to turn things around.

Steve: And then and you're the sober investor. This is your mom was running a sober living home. Yes. So I didn't know what sober living was. Right?

And I was doing PPC marketing, right, buying houses, whatever. And the first time I went to a sober living house, like, what the hell is this? These people just pay you cash per room. This is ridiculous. And I didn't know what to do with it.

Right? Like, I'm a licensed realtor. I'm wholesaling. I had no idea what to do to do with this. So I called up Jamil.

Patrick: Perfect.

Steve: Like, you got a guy for this? He's like, oh, I got lots of guys for this. Right? And I remember we wholesale that one. I think we split I think we split 50 k on that one.

Right? Because the numbers were just absurd. I'm just looking at this, like, how can I possibly buy this house for, like, 150 k, but it cash flows, like, 4,500 a month? Like, this the math just doesn't work. Wish I kept it.

Alright? So but that's that that was another story for another time. So alright. You get clean.

Patrick: Mhmm.

Steve: Then what?

Patrick: I get clean. Funny enough, my who is my wife today, we actually met in that rehab. Mhmm. And, everybody voted against it, but, I started working a program, started learning AA.

Steve: Voting against what?

Patrick: When you're, new in AA, you get a sponsor who takes you through the steps that you bounce your ideas off of, and they kinda teach you the way of AA. And both of our sponsors, you're you're not supposed to get into a relationship for the first year. And we got into relationship the first week out. Mhmm. And it's just, her trying to get sober, me trying to get sober.

Usually addicts get in together. You guys use together. If you fight, something like that happens, but we've been together now in ten plus years. Mhmm. But, yeah, they went against that.

But, the first two months of me being sober, I got a good job. I started a vaping company. And the vaping company, I started it in my freaking, kitchen. And going to all these AA meetings, I was freaking slanging, e juice, for the vaping. The vaping was kind of newer back then, and then I stepped up, went into an actual lab.

I ended up, netting 6 figures my first year on, the vaping company I had. So that was like, oh my god. Freaking entrepreneurship. I can put my my bad my skills that I was using for evil to good and, be successful with it.

Steve: Right. So you got your vaping company. Mhmm. And that's humming along. Then what?

Patrick: Again, so my mom worked at this, sober living it was the one of the largest, facilities at that time. It was, like 43 beds. It was a main house that had a three bed, an office with a pool, and then there was a bunch of, like, little cottages, nine cottages around it. 43 people. And when she ran down the numbers, she was getting paid minimum wage, like, I don't know, $9.

There was one other guy that was getting paid $9, and I was like, how much is it per bed? And she started running down those numbers to me, and I'm like, this thing is grossing half 1,000,000 with two people doing very little. And I was like, that's amazing, and it's helping all of these people. So that's what got that bug into my head. That didn't come till a little bit later.

I've always been addicted. I traded one addiction for another. I've always been addicted to money and work. I could work twenty hours a day if I didn't have a family and be okay with it. Yeah.

So I start I got a whole bunch of different jobs. So I had the vaping company. I was bartending and serving, and I was also doing catering. Mhmm. Bartending and serving, and I was doing a promotional sign company on the weekend.

So I had, like, five jobs, and I did that for a good four years just grinding. And then got to a management position at a restaurant. That's what my whole goal was, to be a manager of a restaurant. And, it was not all what it was cracked up to be. Freaking constantly seeing my, bartenders walk with more money than me.

And one third of the time that I spend in that building, I was like, this is horrible. So how I got to, again, workaholic. And it came to a point where I wasn't really doing AA. I wasn't doing anything but work, work, work. I was missing the dance recitals.

I was missing the soccer games. I was missing everything. So in 2019 so I got sober in 2013. So 2019, fast forward, I decided to put God, AA, family, friends, and then work. Mhmm.

2019 between my wife and I, it was our worst year financially. We made $30,000 between the two of us, but it was my best year with my kids, with, AA, God, and all of that. And so I started I've always always wanted to be in real estate, and I wanted to be able to get my license so nobody could had to tell me what a good area was or, the comps or anything like that. So I had some downtime. So I started to do the, real estate or the course.

And, I googled Kenneth Feller in Arizona to get his real estate license. Everything that I've seen that day said yes. And I was like, cool. So I spent the money, took the test, passed it, did one more Google search, and it said, oh, you might not be able to. And I'm like, dang it, man.

So, I started the process of getting my, record set aside. You can't get it expunged here in Arizona. You can get your record set aside. So I started that process.

Steve: Right.

Patrick: And that was a long process.

Steve: Yeah. How long was that process?

Patrick: The process, I'm gonna say it was, like, four or five months Mhmm. Of me every single day looking, looking, looking, looking, and still nothing.

Steve: But you're just waiting on somebody.

Patrick: Just waiting for a letter in the mail, waiting for them to approve my stuff getting set aside because I petitioned the court on my own. Somebody said, I'll show you how to do it. So I did all of the court paperwork myself and petitioned the judge to set it aside. So I didn't know if I did it right. I didn't they didn't say yes.

They didn't say no. It was just a waiting game. Right. Yeah.

Steve: So then, eventually, it gets set aside? Yes. Is this when you and I meet?

Patrick: Before it got set aside.

Steve: Before it got set aside? Yes. Okay. So we met? Yes.

You wanna share how we

Patrick: met? Absolutely. So, again, I was doing, waiting on my record to be set aside, and I do catering, bartending, mansions, and stuff like that. I was on my way to one stop. My boss called me and said, Hey, I'm so sorry.

Last minute, I need you to go here. I looked up the property. It was like a $4,000,000 property. I was like, Cool. I'm gonna make some money tonight.

I go. I'm setting up, and I happen to see a cornhole game with like a house logo on it. So I looked it up, and it was Stunning Homes Realty. And the owner is Steve, and I was like, that is my contact. And I don't know how to talk real estate at this point.

So you come back. I'm like, so you're in real estate, and you just giggle and laugh. And I told you, I lied to you. Sorry. I'm gonna confess to you now.

I told you I had my real estate license. Yeah. And, you're like, well, you're in luck because the largest investors companies in the country are gonna be here tonight.

Steve: Yeah.

Patrick: And, I mean, Jamils, your Pace Morbies, your Elijah Rubens, your Templeton Walkers, your all these people I don't know at the time. Everybody who came to the bar, what do you do in real estate? Do you have a business card? And at the end of it, you weren't allowed to have your phone, and you told me to put your number down. But I wrote your number, and, we were supposed to have an interview for me to hang my license with you that Monday.

Steve: Right.

Patrick: But my record wasn't set aside yet. Yeah. So I felt like a piece of shit coming, went home. I was like, man, I just lied to this dude. There's no way.

And, like, two days later, my record gets set aside. I call you, bring my license with you, and then take the disruptors course, and it changed everything forever.

Steve: Yeah. So I remember, yeah, he's like, hey. You know? So you're you're in real estate. Yeah.

I'm in real estate. Like so, like, you know, what do you do? It's like, look. And, you know, for everyone who's watching, this is my fortieth birthday party. Right?

Like, I don't celebrate birthdays. Like, I think it's, like, whatever. But, you know, my cousin did this crazy thing for his fortieth birthday. He did a Airbnb for at a mansion. I was like, ah, it's cool.

I'll do the same thing. So we did the same thing. And so, yeah, like, he got to meet a bunch of my family. Right?

Patrick: Brothers. Yeah.

Steve: Yeah. All my brothers, wife, kids. And I was like, yeah. You know? It just so happens that we got some of the top realtors and wholesalers coming tonight.

Right? So, yeah, we we mentioned Jamille Templeton, Pace, and then we had who else? We had Everybody. Batch people. Right?

Patrick: Everybody. Oh, yeah. Jesse Burrell freaking yeah. Everybody.

Steve: And it was like, what I thought was great was, again, watching you interact, with everyone that came to the, to get some, get a drink. And I think one thing you I asked you afterwards, like, hey. You know, how how what do you think? It's like, the conversations at this party I've got goosebumps. Yeah.

Is different than other conversations I bartend. Right? So, like, I know this is the right place.

Patrick: So the the back end of that Mhmm. I've I was waiting on my real estate license. So I've done YouTube, searched everything known to man. I thought wholesaling was a big gimmick. The Astro flipping was a big gimmick.

I was getting emails daily from Sperber, and I don't even know what I signed up for, and I thought it was all huge gimmick. Mhmm. But the conversations that were happening yeah. I just flipped an eight unit and made a quick 800 here, and, oh, I just did this. Oh, I just wholesale and made a quick and I was just like, oh my god.

And then at the end, I don't know if it was Jamil, but you you guys came to me and said, we need 30 shots right now at the end. And, I mean, I had one shaker, and I'm sitting here trying to do these shots and passing around. I think it was Jamil who did a toast. It said

Steve: It was Elijah. Elijah. Yeah. Salute.

Patrick: And they said that they wouldn't be here if it wasn't for you. Yeah. And I was like, whatever I gotta do to be a part of this, I'm gonna do it. So Yeah.

Steve: Yeah. So pretty fortuitous. I'm glad you were there.

Patrick: It was, it changed changed everything. And then taking your disruptors course, fire hose at my face never made a cold call in my life, but the action that I did take from the what I learned at your disruptors course, changed everything for me.

Steve: Yeah. And you took a lot of action too, though. Right? I mean, that's the big key was that you're showing up every single week. I think that's the biggest thing.

Because there are a lot of people that say, I want it, and that's kinda where it stops. Right? A lot of people say they wanna be successful. I I make this joke. A lot of people wanna be successful in the same ways I want a six pack.

Right? Like, it'd be pretty cool, but I'm not gonna do the work necessary to get a six pack. Right? So, I mean, hats out to you. I mean, you you came in.

You did the work. So I think talk about your first deal that that you did once once, we'll we'll save the realtor conversation for another time. Right? Let's talk about your first investment deal.

Patrick: So, again, from your, from the action that I took, I came into the office. I did the the text blasting, and I found a deal. It said it was worth 800. He wanted 600. I'm like, oh my god.

I got a deal. I came into this office, Keeps. Right. And, I because he's the biggest buyer, and I called him. And, just a weird coincidence, I ended up serving him that same night Mhmm.

And pitched him the idea. Yeah.

Steve: Oh, yeah. I remember that because you're yeah. You had mentioned that you're gonna be going to his place. Yeah.

Patrick: No. He was said he was gonna call me back, and, I went to to my shift still serving, and a guy walks in with roses. And I'm like, why does he look familiar? I went back to my phone. I was like, oh my god.

That's the guy I sent the deal to. I paid one of the servers $20 to wait on that guy. And it was his mom's birthday saying happy birthday, and I pitched him the idea of a sober living. At first, he was like, but then I got to talk to him even more. And he said, if you come to this address with $5,000, it's yours.

I'll give you an opportunity. I didn't have $5,000 after I pay. I I think I borrowed money for the disruptors course, and then I didn't have that money. So I borrowed money from my mom and my mother-in-law to get that first house. And, that first house was, February 2020.

And, first week filled up, everything great. But, a week later, I'd called for rent to the manager. He's not picking up. I go over there, and the guy opens up the door with a vodka bottle in his hand, and he's like a big MMA muscle wrestling dude. I'm like, oh my god.

Okay. Come to find out the manager was letting him a drink, do drugs, sell drugs out of the house. The manager took off with the rent money and took everything out of the room, called another guy to come manage. Everything was good. But, again, February 2020, good old COVID hit.

And, every single person in my house, at my sober living, lost their job, and I lost my serving job. So I'm just like, I just borrowed money for this first first house. And I was just like, God, whatever you need me to do, I'm not kicking these guys out. Let's figure it out. One of the guys went to a temp service agency, around the corner, got hired at Amazon.

Everybody in the house followed suit, and everybody caught up, paid me back. And then That's awesome. By August 2020, I had 10 homes.

Steve: Mhmm.

Patrick: All, doing a rental arbitrage from Zach Keeps. And, that's I ended up getting a contract, from, a program because they were turning down people. I'm like, why are you turning down people? And they were like, because we have nowhere to send them. And I was just like, what if I can provide a house for you completely furnished, and you now know you have 10 beds, but you're gonna pay me the same thing whether there's zero people in there or there's 10 people in there.

How's that sound? They're like, okay. And I was like, how's 10,000? They're like, we'll take five. And I'm like, holy moly.

So five houses. Now I'm collecting 50,000 from them. One check every month. I don't have to chase anybody down. I'm like, this is amazing.

Steve: But before we get like, before we continue that. Right? So your first one was Zach. And before even the big Russian dude with the vodka, right, before that, you've got a property now.

Patrick: Mhmm.

Steve: This is what you said you said this is 2019. Right?

Patrick: 2020 is when I got the first property.

Steve: 2020. Mhmm. And it was 2013 when you came back to your mom. Mhmm. And she was in a sober living home.

Patrick: Mhmm.

Steve: And you said, this this is it. This is what I'm gonna do. So seven years later, you own your first one. How are you feeling?

Patrick: It it was amazing. It was a it's a bunch of mixed feelings because knowing me, I'm a workaholic. I told myself, even though I had my bartending serving job, I told myself, I'm just gonna get three of these to replace my income, and then I'm gonna quit this job. Knowing me, I would have done them both Mhmm. And would have rode that out until who knows how long.

But with COVID happening, it forced me to only focus on me and my abilities, and I think thank god for that. But it was a bunch of mixed feelings. Yes. I finally got my first one. It's all coming together and then COVID happening, me losing my job, everybody in the house losing their job, and it's just like, god, whatever.

Steve: Well, this is the crap that happens when you get in real estate.

Patrick: It's like, oh my god. There's a bunch of just roadblocks.

Steve: There are. Because everyone thinks, like, I just gotta get a seller answer the phone, and you get a seller answer the phone. Oh, now I gotta get the seller to agree to meet with me. Okay. Got it.

Got it. I gotta get the seller to sign. Alright. I got that. Now I gotta move this deal.

Alright. Alright. I got that. Oh, they bailed on closing. Like, there's this

Patrick: So many.

Steve: There's always so many places where you feel like I got it, but get this curveball because you don't know what you don't know. Right? And you have something terrible with COVID. Right? Like, that that whole deal.

But when was the moment that you realized, man, this is this is it? Like, what I set out for in 2013, like, this is finally real. When did that happen for you?

Patrick: When all of the guys in my house that had just lost their job went to the temp agency to, get a job at Amazon, All of them coming home were actually working a program. They're all buying cars, just seeing the evolution, the them evolve into productive members, of society. Mhmm. Just seeing that, being able to be a part of that and wanting to multiply that feeling and that, sober living as many times as possible, it was, it was at that moment.

Steve: Yeah. So would you maybe you could process it. Or what was your what were you experiencing when that happened?

Patrick: The feeling or Yeah. Just knowing everything was gonna be okay. We're still struggling financially because 2019, we made 30,000, and we borrowed money to get this first house. My wife, she will let me risk the last penny we own. I've rolled the dice a million times, and she's good.

She just asked, I just want my one vacation a year and make sure we're taken care of.

Steve: Mhmm.

Patrick: So just risking all of that and freaking knowing that I can do this and something like COVID might stop me from it. It was just like, I can't let that happen, man. Mhmm. So just processing of how I'm going to multiply this, how I'm going to take care of my family, how much of an amazing experience this is. And then, you, I forgot to we skipped over that part, but, being a go giver, and really honing in on that.

Mhmm. I skipped over a a a crucial part that I usually say in podcast. When I first went with your brokerage Mhmm. I asked you, how do I become one of your millionaires? And you said, give me three years, and I wanted to do it in half the time.

But I would you'd come I don't know if it's like this now, but, when I was a part of your brokerage, I get access to you for free, and people pay a lot of money for that. And I got it for free. And I would come in, and I would ask you all of these lavish questions, and you would steer me. Be like, hey. Go read this book first.

And I think one of the first books was The Go Giver. And then, the one that changed everything for me was the, Miracle Morning.

Steve: Mhmm.

Patrick: You knew I was not ready to receive the information I was seeking, and you pushed me, to get me ready.

Steve: Mhmm.

Patrick: And I vaguely I say this all the time. I was very upset. After reading The Miracle Morning, I was like, hey, Steve. I'm waking up at 5AM now. And you're like, oh, that's that's cool.

He was like, millionaires wake up at five. Billionaires wake up at four. And I was like, nah. So I started waking up at 04:30. It was a happy medium for me.

But, really truly living the go giver mentality and, making sure I'm in that mindset and just go giving, not expecting anything in return. AA, the big book teaches you the same principles, but just to actually live them, fullheartedly and know that God got you no matter what happens. So it was a lot of mixed feelings on that first property with COVID and all of the unknowns happening.

Steve: Right. So you you you take that, it works Mhmm. And you multiply that. How many of those did you do with arbitrage before you get the before you you went with the that big client again that they that gave you

Patrick: Those were all arbitrage as well. So my model is still today, man, arbitrage. And I have 34 properties. I own 10 of them. The rest are arbitrage.

Steve: Mhmm.

Patrick: 34 properties in Arizona. So I still love that model, but all of them were arbitraged. To get that 50,000, I didn't have no houses available. I started calling Airbnb saying, hey. Will you let me rent monthly?

This is what I'm gonna do. Are you okay with that? And I ended up finding a Airbnb person that had two houses right across the street from each other. Mhmm. And she was like, go ahead.

Just put it back the way you found it. And I was like, cool.

Steve: Right.

Patrick: So arbitraged, the freaking full way, man.

Steve: Yeah. The $50,000

Patrick: Mhmm.

Steve: A month.

Patrick: That was just off the five properties.

Steve: I was

Patrick: still netting close to 20 off of the other five.

Steve: Mhmm.

Patrick: But I

Steve: mean, it's pretty dope that that's, like, that guaranteed is coming no matter what.

Patrick: That guaranteed money hits a little bit different. Yeah. Because the sober living, you're chasing down 10 dudes, and it's just an revolving door.

Steve: Yeah. I mean, it's a it's a very interesting business model because you have to have one manager on the site Mhmm. Who manages everyone else, and you just hope that guy does a good job.

Patrick: Correct. Yeah.

Steve: And then so going from there, what happened after that?

Patrick: So, something very unfortunate happened. So, a buddy of mine called me and said, bro, do you have a spot available for me? I in my sober living, all of my roommates are getting high, and I don't wanna get high. I don't wanna die. I was like, bro, pack your stuff.

I'll come pick you up right now. You can live with me for free. He came from the prison mentality, and he didn't wanna feel like he owed me something. Two weeks later, he was murdered wrong place, wrong time. And he had asked me if my sober living took that's what I skipped that.

If my sober living took insurance. And I was like, no. But you can come here for free. So I vowed right then and there to, never let that happen to me again. And this industry is not like the real estate industry.

Everybody I called pretty much gave me a pat on the button and said you'll find your way. So it lit a fire under me to be better than every single one of those people I asked for help. And, You mean, like, dismissively,

Steve: but, like like, go you'll find your way. Like, you'll figure it out. No. Like They weren't they weren't helpful?

Patrick: None. Not no. When I came into real estate, breath of fresh air, nothing like I've ever experienced before. Well, with the community that we have here in Arizona. But, no, nobody would help me because they all had,

Steve: close mindset.

Patrick: Scarcity mindset, not mind of abundance. I'm gonna take I'm gonna get their golden goose egg. I'm gonna take their client and all of that stuff. So I sat down to, see how I can take insurance. And, with building that, learning all of these different things, I met with my, business my ex business partner, and she had this, actually, my sponsor in AA was her husband.

Mhmm. And my sponsor is like, hey. She wants to do women's houses. I was like, I have no interest in women's houses. I will show her.

We can split the profit, and let's go from there. We opened up two women's houses, and she had worked for some of the largest, behavioral health companies locally. And so we connected. We both have the same mission, vision. She reached out to her people.

We found some consultants, and me and her came together to build a, behavioral health company. And that just we started in, like, November 2020. Mhmm. And by the 2021, we started with two employees, two houses. And by the 2021, we had, 40 employees, 30 houses, almost like 80 clients in the first year.

We we grossed, 18,000,000 in our first year, with the behavioral health company. And it was, being heard that we don't know how to say no. Like, somebody approached us, hey, do you have a mommy and me home? We were like, we'll open one up tomorrow. And that was hard to figure out.

We had daddy and me homes. We had LGBQ. We had, anything that people came to us and there was a need and it wasn't out there, we we would open it and figure it out on the back end.

Steve: You're doing niche sober living homes?

Patrick: So the the company I was just talking about, so behavioral health, we had a commercial location. So we have a lease on a commercial location. And in that commercial location, there's different services that you can provide, whether it be one on one therapy, group therapy, pure pure, group therapy. There's a there's a million different services that you could provide, but we are providing those services, teaching people how to be sober. And with that, we were able to provide a supportive housing.

If they came to us homeless, we could put it in their treatment plan that we would have housing for them. Mhmm. And so we had therapists, nurses, doctors, everything on our payroll, and they were providing the services. And in return, we're able to bill the insurance for the what the individual had. Mhmm.

And so we were receiving money from the insurance company.

Steve: Yeah. So 60 was it 60 employees? No. 40 employees?

Patrick: 40 no. No. 60 employees, 40, 40 homes in our first year.

Steve: What was that overhead like?

Patrick: Overhead was insane. Again, me, I've never owned a business this size. My business partner never owned a business this size, and, it was definitely a learning curve. And we just didn't know what we didn't know. Mhmm.

And we went even harder the next year in 2022. I mean, we ended up after, before we sold it, we ended up with, a 100 employees, 60 homes, and a 120 clients. And we were already in, Nevada at that time as well. And the overhead on that, I mean, payroll 200,000 a week. Was it a week?

It was it was crazy how much money was going out of our bank account every single week.

Steve: But it was profitable.

Patrick: So, Brandon, from Sharper, like, broke down the numbers. And my personal company that I didn't have all that overhead, but I was doing behavioral health on my own with my own company Mhmm. The net profit, and he just looked at me. It was 93% net profit. Mhmm.

And he was just like, stop everything you're doing. Why are you focused on anything else? Focus on this. Mhmm. But, that company, it was still 50% profitable, net profit.

Mhmm. Even with all the crazy we had, like, a one to one ratio to, employee to client, which is I didn't agree with.

Steve: Right. So this profit or this company that was a little bit more chaotic was still running 50%

Patrick: Mhmm.

Steve: Net. But your other company was less which was less chaotic was 93% net.

Patrick: Mhmm.

Steve: But you didn't know this?

Patrick: I didn't know how to run those numbers. I knew how to get the net profit, but what I'm learning with Sharper right now is everything I skipped over. I know how to make money. I know how to run very fast. I know what I want it to look like, but the steps in between, I I I don't know.

Steve: Yeah. But, with The big, big plug in there for Sharper Business.

Patrick: Yes. So I started learning more and the stuff that I wanted to implement in the larger company I was implementing in this company, and I who not how. I hired a, a gentleman who had owned businesses before who was a independent therapist so he could run the whole thing and had some business, background and was teaching me stuff along the way. And so that company, again, 93% profit margin, and it was, not as big as that and just as profitable.

Steve: I mean, ballpark, what kind of figures are you talking about? Like, revenue.

Patrick: So, I mean, revenue wise. So, we grossed 18,000,000 in our first year, 22,000,000 in our, second year. And then my personal company, I think we did, we grossed 8,000,000 last year. Mhmm. Yeah.

So roughly, I mean, 93% profit on that. It's

Steve: What was you you had all this chaos on one side. I mean, what was what what was the headcount over here? Because you're saying you didn't agree with one to one. What was your headcount on the other side?

Patrick: Account was small. And on this side, I the what I was hired to do was the business side and the, back end stuff. Mhmm. I hired somebody and trained them to do everything that I did, but the other business partner didn't, she wanted to keep her hands in. Mhmm.

So that was running without me bear I mean, at all. It was it was awesome. Over here, I had 10 houses. So I have 10 managers, and, a therapist, psych doctor, psych nurse, and, like, two people to do peer to peer groups.

Steve: Mhmm.

Patrick: It was very minimal.

Steve: Way leaner.

Patrick: Way leaner. And I was able to use them for more things. The house managers were able to teach groups if they had the right certifications and lot less headache. One one building, 10 houses that were close by and,

Steve: yeah.

Patrick: But it did I'd still came in. I didn't have to, but I still came in every day to talk with people and, run numbers.

Steve: So this might sound really obvious. Right? But why sober living so important to you?

Patrick: So my name, the sober investor, it's a play on words. I'm sober and I invest, and I invest my time in people trying to get sober, and I also invest in sober livings. Mhmm. But sober livings is where I came from. Like, I can go do private insurance and make 10 times more than I'm making right now, which still might come.

But, the peep where I came from, I came from Maryville. I I came from a broken home. I came from public funded insurance. And that was what I had went through, and I wanna be able to show people that you can be successful if you where you it doesn't matter where you grew up at. It doesn't matter your background, your family, the felons, the high school dropouts.

It's it doesn't matter. It matters where you start now and where you go from here. And I get an opportunity to do that, each and every day. So we're living is where I started and that is my passion and my love. But now that I've been in this thing, we're now doing veteran homes.

We have a a program starting out, kids aging out of foster care, prosperity rising homes. Look those up. Kids aging out of foster care, veteran homes, assisted living that's not just, for the elderly, battered women shelters, domestic violence. We have our hands in all of those. And it's just to be able to help those individuals and see the ripple effect.

You're not just helping somebody's son, brother, father. You're you're I mean, you're helping the entire family, and the ripple effect that, is hit from that is just it's crazy. It's amazing.

Steve: How many people do you think have you kinda helped get back on their feet?

Patrick: We're starting to keep track of that now. But it's so our first year, we did 600 in the big company. We had 600 people come through our doors, and they stayed with us on average, three to four months. And then, the next year, I think we did another 700. And then, with my personal companies with sober livings is probably another thousand.

Steve: Mhmm.

Patrick: And who knows how many people's lives that that affected Alright. Indirectly.

Steve: So looking back to where you came up, where you are today, and you're able to make this impact, like, how did how does that how does that all land?

Patrick: Crazy enough, people are stuck in their, like, mindset. So I try to go back to the friends that I have and try to go to reach the communities that I I grew up in, but a lot of them are closed minded and don't really wanna receive the information. And it hurts, like, even in my AA world. Like, those are the people I want to bring up with me, but they are stuck in their little little world. And, so I connect with the people that want the help, the people that reach out to me.

I always tell my guys that come into sober living, I'm not gonna give you more effort than you give me, but I'm I'll match your effort seeing where you wanna go on this journey. And me, I'm vertically integrated. So if they need detox, I have a detox. If they need inpatient, outpatient, if they need then when they're graduate from that, I have the sober living. And when they're graduate from that, I'm a realtor.

So I can get you a rental or buy you a house. But I want to be vertically integrated so I can meet these individuals no matter where they're at on their journey in their life.

Steve: Still going back to, though, like, you know, the fact that these people are coming in and you're able to kinda give them direction and guidance. Not to say that you're doing all of it, but you're seeing you're you're you're directly involved, at least partially involved in in their shift, right, and then coming out and finally making, going the right direction in life. What impact has that been for you?

Patrick: It's a huge impact. On me, I always get the imposter syndrome, why me? But then I have all these people that reach out to me like, bro, like, you're the guy. You you I get messages. Bro, if it wasn't for you, this, this, and this.

If if you didn't help me hear this, this, and this. So it's just being there firsthand, seeing, some of the stories, seeing, the change, seeing the smile, see a light light up in somebody's face. It's, it fills my cup. It is my why. It is my purpose.

And I'm just glad that I found, a industry where I can pursue my purpose, take care of my family. And I'm a firm believer if you were a jerk before money, you're still gonna be a jerk with money. But, making, being able to make money, puts me on a a a pedestal not a pedestal. It puts me at a place where I can help even more people.

Steve: Mhmm. Yeah. So if someone wants to get into sober living Mhmm. How

Patrick: so, I have the soberinvestor.net. Mhmm. I also have, worked with soberinvestor. I'm I'm j ving with people all over the country here locally. It just depends.

Again, there's so many different directions you wanna go. And usually, I say if there is a nonprofit for it, then there's probably a need for housing. So, I mean, cancer, cancer survivors, cancer patients, amputees, people in wheelchairs, there's so many different types of housing that you can do that's just not just sober living. If sober living is where you wanna be, I firmly believe that you have to have a passion for it or you're the money behind the person with the passion. But I've seen people come with the the shiny object syndrome come in and they fail fail just because they just are looking for a check or looking for money.

But if if sober living is a passion of yours or your family was affected by it or something along those lines, then great. Let's let's, collab, reach out to me, and, I would love to, teach you and re push you towards the right direction to be able to get your first sober living or whatever type of housing that you're looking to do.

Steve: Let's say they're not ready to reach out yet. Okay. But they wanna start doing this.

Patrick: Research.

Steve: What kind of properties should someone be looking at?

Patrick: So if you're just doing sober living, again, I don't wanna mix up the two. Sober living is is cash pay. So I get paid per bed. It's no government assistance, no insurance, no nothing like that. So sober living, I put 10 beds in a home, and I just upped my prices after three years.

200, 200 per bed per week. So, I want to be able to put 10 beds in a room or in a house.

Steve: It's 10 beds. Does that mean 10 bedrooms?

Patrick: Nope. Ten ten beds. So there's some rooms. I just got a house license this morning. We did any inspection, passed the license.

I had five beds in the master bedroom Mhmm. Because it's 50 square feet per person. So, again, the room was 300 square feet, so I could I could have put six in there if I wanted to, but I put five in there. So you can look at four to five bedrooms, and, you have to that square footage here in Arizona, the 50 square feet. So you want your rooms, bigger.

And I give a room to a manager. So if you're looking at a four bedroom, a manager gets one of the rooms. So those other three rooms have to be big enough to be able to, have the square footage for 10 beds.

Steve: Mhmm.

Patrick: So me, the perfect world, five bedroom, three bath, or five bedrooms and up. I have been focusing more on multifamily now. More heads under in one area under one roof is a lot more beneficial. So I've been looking at more multifamily properties and, but five bedrooms and up for sure.

Steve: The five bedrooms ideally. This is an Airbnb. Like, what kind of furniture are we talking about?

Patrick: IKEA. No. I can my first house and the first one that I got, it was a goodwill special, man. I I furnished the entire five bedroom house with a thousand dollars. There was no matching silverware.

Wow. There was no matching dressers. The blankets were all different colors, goodwill to the bone, and that was probably with a 20% off freaking coupon from goodwill. Now I average, about 5,000 to, furnish a five bedroom home. Mhmm.

Steve: If

Patrick: you're trying to do more amenities like the pool tables and, movie theaters and jacuzzis, then, obviously, it's gonna be a little bit more.

Steve: Is that important?

Patrick: I I'm a firm believer. When I first got into this, my goal was to be better than every other sober living out there. My first sober living experience, I was in a thing that they called a bunkhouse, and they had 15 bunk beds, 30 dudes in a freaking room this size. And, the next one I got graduated to was a bed on a twin mattress on the floor with bugs everywhere. So I wanted to do better and be better than everybody else out there.

The houses that I have that perform the best are ones that have pool tables, jacuzzis, swimming pools. And I'm a firm believer. I want to give them a product that I would be proud to live in. It it changes their mindset. It gives them in a space where they're excited to go on in their journey.

So I wanna give them the whole experience, man. This is a house that you can you can own potentially one day or rent one day. This is not so far fetched from reality.

Steve: Yeah. So furnishing. Now it's all cash pay, so you don't have to worry about insurance. How would you let people know that your place is available?

Patrick: Crazy enough and Sharper did not like it for this. All these companies that I have spoke about today, not a single one had any dollar marketing wise behind it at all. It was all word-of-mouth and Facebook posts. That is it. So, and some flyers.

So right now, we just opened up another five houses. So I have my managers posting every single day on Facebook. And then at all of the AA meeting halls, we have a flyer. Some of them old school pull tabs. Mhmm.

I won't do the pull tabs, but a lot of people still do those. But just a flyer in all of the meeting halls, Facebook. There's, sobriety Facebook groups, all over. I network with detox facilities, inpatients, outpatients, hospitals, veteran homes, assisted living, facilities. I network with all of the people that kind of, have some type of service for the individual that you are, Yeah.

Catering to.

Steve: You're just marketing to where you're probably gonna be

Patrick: Yeah.

Steve: Which makes total sense.

Patrick: Mhmm.

Steve: And, yeah, I mean, zero budget marketing might maybe you could spend more, but 93% profit margin also sounds pretty good.

Patrick: I was in Beverly Hills, and this guy, he's on a higher level than me, and he's like, bro. Yeah. I was visiting, and, I was there for my wife. And he's like, you came at the perfect time. And I was like, really?

And he's like, I have people flying from Florida. They're our marketing team for behavioral health. And I was just like, awesome. I was like, how much are you paying for marketing? He's like, right now, I'm paying 40,000 a month.

And he's like, these guys want me to do a 100,000. I was just like I mean, obviously, if he's spending it, there's a reason, and he's he's definitely well off. But I was just like, oh my god. Yeah. A 100,000?

I was just like, even 50. I'm like, man.

Steve: Yeah. So pretty low, vacancy rate then, I'm assuming, right now.

Patrick: So I base all of my numbers on a 70% occupancy rate. And so if it's if I can have seven people in there and still make $500 off of my numbers, then it it works. So vacancy right now I mean, we just opened up five homes. But before those five homes, I had three empty beds, on a 100.

Steve: Yeah. So vacancy is not so bad. Mhmm. So behavioral health is something else.

Patrick: Behavioral health is something else. It's insurance based, and you have a commercial location where you provide the services. They do not allocate any type of money towards housing. We were able to give housing a part of their treatment plan, but we weren't paid based on the housing portion. You could also do it on an inpatient level, but then there's a lot more red tape.

You need fire sprinklers. You need twenty four hour nurse and all of these things. But, yeah, there's different, levels to, the kind of level of care

Steve: Mhmm.

Patrick: That you're able to provide at a residential level or or at a commercial level.

Steve: So talking about the commercial, I didn't I wasn't aware of the commercial element. I knew you had a commercial building. Mhmm. But talking about the commercial element, like, it has to they have to stay in a commercial building or the treatments in a commercial building?

Patrick: Just the treatment. So our our classes so they come to class and then go back home. So the classes were anywhere from, three hours to eight hours a day depending on their, treatment plan. So they would come in and get their one on one, get their group activities in. We did fun events, every Friday, do their grocery shopping if they needed to go to the doctor, all of these different types of services.

I mean, you can get really it there's some amazing stuff out there. There's a guy who owns a gym. He does, CrossFit training. Mhmm. He's able to bill insurance for the CrossFit that he does.

There's a guy who owns a art studio. He does art therapy. You can get paid from insurance, pet therapy, music therapy. There was a company my wife worked for, and it was like a mentoring program. She would go on to the reservation, pick up her client, and she would take them out to eat, take them to the movies, and take them to go do something fun and then drop them back off, and insurance was paying for that.

So there's so many, depending what your passion is. I mean, there's so many options out there to help somebody while also pursuing your passion and to be able to make a good living.

Steve: So I know you have a a a higher purpose. Going back to the numbers, it's in behavioral health and sober living. Which one is the,

Patrick: clear winner? Yeah. Behavioral health, if you are willing to put in the groundwork to where it takes to get you to that level to be able to bill insurance, 100%, the numbers on a so last the numbers are not like this anymore. But last year on a three bedroom house, I was netting a $100 per house Mhmm. With insurance.

Steve: Right.

Patrick: But not on the housing level, but with with numbers. On the sober living aspect, I just changed my numbers, but at full capacity, you're you're grossing 7,000.

Steve: 7,000 or a 100,000?

Patrick: 7 you're and that's gross. That's net. This 100,000 was net.

Steve: And then per 100,000 net per

Patrick: Three bedroom property that I had.

Steve: Per month? Per month. 100,000 net per month. Per month.

Patrick: Not like that anymore. It's a it's a there's a lot of crazy that's happening, in Arizona right now, and things have gotten capped. There's still a potential to make not that much, but I I hear that we're people are getting anywhere from 3 to 500 a day per person right now with the insurance thing to, depending on the services that are provided. Right. Sober living, you're grossing 7 Mhmm.

Grossing. And, right now, I'm averaging anywhere from 2 to 3,000 net per property. Right. With one of the states that I'm moving into, there's no licensing required. You can have three times the people as bedrooms.

Steve: Mhmm.

Patrick: So walking into a a five bedroom, I could put 15 people in there, and their average is 250 a week. Mhmm. And so you're you're grossing 16,000 on one property just changing states doing the exact same thing.

Steve: Right. So you're saying that the things have changed. Mhmm. The numbers aren't the same anymore. So what event occurred, in Arizona where the things have changed?

Patrick: A lot of misinformation was out there. Everybody was just doing the same thing that everybody else was doing, and there was no really compliance with access. So everybody was thinking that they're doing the right thing, but there was a lot of other people doing the wrong thing. So there was a lot of body brokering, double billing. People were getting held for ransom.

Not ransom, but held against their will just so they could bill the insurance. People were feeding them drugs and alcohols that make them stay in the houses just so they can bill their insurance, and people were billing too much, which is hard because the code that everybody was billing is if you go into the access's, book, it says that this code, you can bill fair market value for. And it's that's to your discretion. Who's to say what fair market value is?

Steve: Right.

Patrick: For these services that I'm providing to state funded insurance, if I go to the private side, I can get $20,000 a day. But since people were billing too much fair market value, companies are getting shut down left and right. Mhmm. And so, the code that everybody was billing, billing wrong, it was again, it was fair market value. You could bill whatever, but now it's been capped.

Just to give you a for instance, I was getting anywhere from a thousand to 2,000 a day per person. Mhmm. They have now capped it at a $156 a day. Mhmm. That one code.

So 2,156, it just got chopped down, and that just happened in May.

Steve: Yeah. Still more than the sober living.

Patrick: Still more in the sober living, but there's a lot more risk, a lot more overhead. But I'm still actively, doing behavioral health, sober living. Sober living is just easier to get into. It's easier to scale. And, people reach out to me all the time.

Hey. I wanna get into this. And it's easier to JV with somebody on a sober living first. And if they like that, then we can talk about moving going up. Right.

Steve: And you said private insurance is something that you're not doing yet, but maybe on the fence. Like, what would private insurance look like?

Patrick: So private insurance so me, again, I come from Maryville, and it's just appealing to that demographic. So, I mean, the company my wife worked for, they had a helicopter pad on the roof, a resort backyard. They have private chef's masseuse. They have oxygen bars, IV bars. Like, it's a whole other world of services.

If somebody is paying there. Right? If somebody's paying 20,000 a day, your insurance is maybe paying half of that, and you're paying the other half out of pocket. So you have to appeal to those individuals that have that kind of money. What do they look for?

Reverse engineer.

Steve: So this is kinda like what you see with, celebrity. What was, like, the Betty Ford's here?

Patrick: Yes.

Steve: Yeah. So And all of us are

Patrick: crazy about it.

Steve: Get the private insurance. You gotta be, like, the Betty Ford Center in, like, Hollywood.

Patrick: I mean, I know some that are not that extravagant, but when I think private, I'm thinking, like, I'm going all out. I'm giving them everything.

Steve: Well yeah. I mean, the money you're getting, you could justify giving them everything.

Patrick: Yes. Absolutely. So and that's the cool thing too. When when we were making that money from the state funded insurance, it gave us more of a ability to pour back into our clients. Our our motto is the client comes first.

Mhmm. We get guys coming out detox in paper gowns. Our first stop is, to a fast food restaurant to get food in his stomach, and then I ask him what size what size clothes do you wear? Then we're stopping at Ross. I'm getting him underwear, socks.

I'm getting him clothes. I give him clothes, so then now he can feel normal. Then I asked him, I was like, do you wanna go get a haircut, man? Do you need cigarettes? Do you need anything right now?

And, when we do the intake process, we try to see what their goals are. A lot of companies out there, you it's just a, it's just a process. Like, they have to do that for paperwork, and then they never look at it again. Us, when you give us your goals, if it's to get your ID or to get your your kids back or something like that, we're gonna work actively work on getting your goals done and hit and met and try to freaking get them back to freaking real not reality, but on life's terms, man. Yeah.

Steve: So in many ways, you're mentoring them too.

Patrick: Oh, 100%. Yeah. 100%. And it's cool, even with my AA guys. I still sponsor guys, but with the stuff that I've learned in my mindset stuff and my, business coaching and all of this stuff, peep it it it excites me when I get a sponsee that wants to be an entrepreneur and wants to learn, how to be sober and learn how to to live in AA.

So I can now freaking give him pointers on both sides. It's awesome.

Steve: And you can tell him to read miracle morning, and they tell him it's not gonna be really enough.

Patrick: Single, but that's the the go giver and miracle morning. Here you go.

Steve: Awesome. So you also started a nonprofit.

Patrick: Mhmm.

Steve: What is what is this?

Patrick: So I started Soul Revival Inc. It's soulrevivalinc.org. And the nonprofit, again, me, I just wanna help everybody. So when I was setting up the nonprofit, they were like, you have to have somebody who who what is the demographic? I was like, everybody.

What is it that you're gonna do? Everything. And they're like, you can't do that. So they made me pinpoint down. But, right now, actually, today, we have a food pantry that's open to the community.

We feed anywhere from 60 to a 100 people every Wednesday from one to three, and then we're actively, with the real estate connections that I have. If you have some furniture that was left behind in a hoarder house or one of these properties that is usable, you can call me up. We have a truck. We come and pick up the furniture, and we are furnishing about two apartments, a week right now. Mhmm.

We did have a homeless, homeless house that we're getting. They're chronically homeless, which is five years and up off of the street, but that was a lot more than we knew. The three guys that we did ended up put putting in that house, we had to shut down the initiative. But the guys that we got off of the street asked, can we take over the lease on this? And I was like, really?

Since they got jobs, then we have we did resumes for them. We got them to close. We helped them, with interview questions. We did the whole nine with them, and they all got jobs, working in the behavioral health field. And all three of them came to me and said, can we please take over this lease?

And I was like, absolutely. And they're still in there today.

Steve: That's very cool. What's your biggest struggle right now?

Patrick: My biggest struggle is, finding the who, not how. With, again, with Sharper coming in, they told me I had to do x y z because if it were if it if I didn't hire them, I would have started another eight companies, not knowing what, the the foundation. And they told me that I could not start another company until I did x y z. I finally did all of the things that they asked. I again, I'm instant gratification, and I, have unrealistic expectation when it comes to time.

When they told me x y z, I was just like, I'll have that done in a week. It took three months. And so I just hired a new operations manager. I hired a new VA. And now that I got all those done, I already had the website and everything built out.

I wasn't supposed to, but I couldn't help myself. So I already had everything built out ready to freaking launch. So I that was like two weeks ago, and I was just in, Texas last week. And we're, I think we're taking down four properties for sober living. We already have two.

We have one aging out of foster care home and then one veteran home already.

Steve: That's awesome. Yeah. You know, when we, one of the first things I was pushing you on was creating content, and you hated it.

Patrick: Mhmm. You

Steve: wanna talk about how you felt about it when when you started it?

Patrick: Still don't like it. Mhmm. Still don't. He, my media person, he pushes me every single day. Mhmm.

Just shoot a video. Just shoot me a picture. Just shoot this. I even have a whole studio similar, in in my house, and I don't. I don't.

Last month, we drew out a bunch of KPIs, for him to hit, for me to hit. And so, I went to a mastermind recently that broke a lot of my paradigms down and gave me permission, told me pretty much told me I am normal if I'm around high level people, I am normal. But to other people, I'm I'm not normal. Right. And it broke down a paradigm.

I actually paid for my first mastermind. I'm trying to get on your level. I'm freaking

Steve: I don't know.

Patrick: You pay, like, 1,000,000 a year for your masterminds.

Steve: Not quite.

Patrick: But I went to my first one and I fell in love. And it broke down something in me. I was like, I'm going all in. So, we're going harder. I'm hoping to start a podcast this month.

We're holding a real estate mixer every month now, and we have KPIs to hit.

Steve: What was the paradigm? Was you said that you're normal?

Patrick: Business partners that I've had in the past, they asked me when is enough going to be enough. Mhmm. And me, and I'm just like I'm thinking, like, I'm a piece of crap. Like cause I wanna go open all these businesses and they don't wanna come with me. And thinking me working fifteen hours, even though I still have the struggle with the wife and family, but, just giving me the permission, like you are normal.

Just have that upfront contract, and you can have those partnerships and let them know you're gonna go do this 10 more times and feel okay with it. Get all that out in the front. And I was just like, okay. And then, it was Pace Morbius, mastermind, and he had Laura freaking come and spit her knowledge on the the wife's side of things. I'm like, oh my god.

Recording every moment, sending it to my wife. No. But it was just I am normal. It's normal to move at a pace that I do

Steve: Right.

Patrick: And to get partnerships that will be okay with me opening up 20 other things without them.

Steve: Right. Well, I I was the reason why we're marking on the on the media thing because you're really opposed to it when I kept pushing you. Yeah. And that is today showed up with your Yes. Your camera guy.

Patrick: Mhmm. He's been with me now. I mean, he's I've been with him for ten years. My vaping company, he came up with the logo. And we worked we met at the restaurant, ZTEJAS, and then I reached out to him when you started telling me the media thing.

And I had him, but I just didn't spend time doing it. But now he's he comes into the office every day. He shoots something every day, and trying to do a lot more of the content.

Steve: Yeah. So they've asked you the question, was enough enough? Do you have an answer?

Patrick: It's not, so when is enough is enough? She was pretty much coming at me like this isn't enough money for you. It's not about the money for me. If I can go open up a company and go hire 20 people, change their life completely, and have a facility that is going to change the lives of hundreds of thousands of people every year, why wouldn't I do that? Right.

And if there is a need in something that you're not if there's a need in the veteran and whatever it is, if there's a need for it, enough is never enough. Like, there's always more people that need help.

Steve: Right.

Patrick: And so, again, it's not about a money thing to me. Still today, I'm I'm successful, but I don't it still hasn't I don't know if it's clicked or whatever. It's just it's not I'm still the same person. I might drive a nicer car, but, it's not about the the money thing to me. I've lived my wife and I, again, we lived on $30,000 in a year between the two of us.

There was no going out to eat or no new clothes, but and that's with three kids.

Steve: Yeah. I would say, I mean, having known you through this journey for the last few years, pretty much the same person. You're just a little more confident today.

Patrick: It it still takes a while. Still the, the confidence thing, people coming to me. I did a coaching twelve week coaching program, and a person came to me and said they got more from me than they did from this. And I was like, oh my god. And now I have people constantly reaching out to me Yeah.

To coach, to mentor, to guide, to do all these things and, like, why me? Like, woah. No.

Steve: Yeah.

Patrick: This, I'm trying to get better at, being acceptive of it. And

Steve: Well, I mean, definitely worthy of it. Right? And, like, you know, you've crawled, bought your way here. So definitely definitely worthy of it. What is your superpower?

Patrick: My superpower is just being a visionary, being able to see, what I want to be done and know it can be done and to be able to risk it all Mhmm. On it. Because if somebody else is doing it, that means there's a will, there's a way. If that dude can do it, then I'm going to find out how to do it. My if I don't leverage their knowledge, I'm gonna hit a couple of roadblocks.

But I risk it all and know I'll be successful no matter what venture that I do.

Steve: Yeah.

Patrick: And to be able to get into some of the right rooms, talk to people, network with people, even though I'm getting better at that, it just always seems to fall in place to find the right person.

Steve: Yeah. I mean, I assume you're pretty active. Right? You're still always out there networking, mingling, and this and that. I see you mean, like, it looks like you're still staying in touch with Zach, which I think is, you know, is great.

What would Kendra say is your superpower?

Patrick: Probably the same thing. She tells me each and every day. My mind works a 100 miles faster than regular people. So when I see a situation, I'm able to freaking just spit some stuff out, and she's like, I don't I I don't know how you do that. And just the work work ethic.

I wake up now. I wake up at 3AM, every morning. Yeah. Every morning. 3AM.

Sometimes two because I can't sleep because I'm learning something new. But, 3AM every morning, do my miracle morning still to this day. But it's the work ethic and to be able to, I guess, just the knowledge that I'm able to implement. She doesn't see how she her some people are meant for entrepreneurship. Some people are just better at w two employees, and she is a gangster.

I mean, she moves up really quick wherever she goes, but it's not for her. But she trusts me no matter what.

Steve: That's good. That's great. What's your biggest regret?

Patrick: Biggest regret regret. Even though it's got me to where I'm at today, starting drugs at such a early age, it robbed me of my childhood. I am a high school dropout, but the reason I was a high school dropout, all I needed to do was draw a picture, and I would have passed. I would have got my diploma. My mom was in prison.

My grandma had just passed away, and nobody was gonna watch me walk. And I could have been a lot better. I mean, in basketball, just it robbed me of my childhood pretty much. So I didn't get to live much of a a childhood. It was all adult stuff pretty quick.

What's another regret? Not getting sober sooner. If I got all of this done in such a short amount of time, if I would've grabbed this 18, 17, or whatever and got sober sooner, I think my life would have freaking I'd be a little bit further.

Steve: But, I mean, do you know that for sure?

Patrick: Not at all. I was just thinking, like, I might I've met you. It was just there's a lot of events that led up to where I'm

Steve: at now.

Patrick: Yeah. So if I look back, those suck, but would I change anything? No. Right.

Steve: Because I mean, part of it is, like, we talk about childhood trauma. You know? And, like, I've got we're talking about you and your upbringing. Right? And how, like, you had really major adversity dealt with.

I didn't really yield very much adversity. Right? Like, my life has been pretty good. I think a lot of people would trade places, right, for the upbringing I've had. Right?

But we all have our different traumas. Right? I just had extreme pressure. You know? You get 98 on a, on a test.

Like, what the hell were you doing? Why were you wasting all your time watching TV? Right? Like, it was just a different type of adversity. And, again, I know it it it might sound weak saying, like, you know, this is what we dealt with.

But we all have our scars and they show differently. And so for you, you've got massive scars. You know? Can't see it looking at you, but, obviously, you know, these these are gigantic emotional scars. And I'm bringing this up is that a lot of what we do is a direct consequence of our childhood trauma.

So I don't know. Right? Like, if you had a normal upbringing, you might just live an ordinary life. Not that there's anything wrong with it, but you wouldn't have the life you have today.

Patrick: I mean, I was born with the entrepreneur, so something would have happened, but not maybe not as amazing as it is now. But, yeah, there's

Steve: there's hard

Patrick: to say.

Steve: All the look at another way too. Right? Because you got a lot of skills that you got to practice. Right? One of my most viral videos was how I hire drug dealers.

Patrick: Mhmm.

Steve: Right? Because you got sales, negotiation, marketing, conflict resolution. Right? Financial bookkeeping, although you struggle a little bit with financial bookkeeping. Oh my god.

Patrick: Horrible.

Steve: Right? But you have way more negotiation regards by the age of 18.

Patrick: When I came in here, I let you know I think I let you know I was a felon, and you asked me point blank. Like, have you sold drugs before? It was like in the interview. That was one of the interview. Have you sold drugs before?

I was like, bitch, I don't know how to yes. Yes. I have. I mean, that was one of your things even back then. Because, again, the negotiation, the sales, the

Steve: You got more reps.

Patrick: Yep.

Steve: Yeah. So I know, like, it's tough. Right? Because it's it's a regret, but at the same time, like

Patrick: Not a regret, but, I mean, it sucks, but I wouldn't change it.

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

Patrick: Failure. Can't think of a failure. Failure. I can't think of well, give me the for instance,

Steve: A lot of people would be like, yeah, partnerships. Oh, okay.

Patrick: There you go. That's all you had to say. That's all you had to say. So, that big beautiful company I had I mean, we had a a dispute of, the way things should run, but, that partnership oh god. A year later, I'm still, messing around with, things that I should have been in the contract that are now in all of my contracts.

But partnerships, I've been hurt by every single partner that I've had except for one. And I've made them millions of dollars, and they still end up screwing me, pushing me to the side. And, but partnerships has hurt me the most right now, just because I I'm a giver. I go all in. I'm freaking loyal to the bone.

And, when things shift and it doesn't go, they don't hold up to their word or their true colors start showing when money starts coming in. Mhmm. So

Steve: What's an example you can share?

Patrick: Of the bad partnership? Mhmm. I mean, just with the the big company, difference in opinions. And just because we didn't have that upfront contract, I was doing stuff on the side that I would had to do she didn't want me to do them, but I still ended up doing them because I wanted to help more people. And that hurt feelings, and, she ended up finding that I was making a whole lot of money without her, and that made her feel some type of way.

And that's what really, wedged, something in between us. But I'm, oh my god. So I was the one with good credit. So the credit card was in my name, all the houses in my name, utilities in my name, all the everything is in my name. And year later, I just got a bill from Cox for $15,000 for a lease commercial property.

I don't even know where that I was like, oh my god. And my name is on it. When we split up, there was a Amex credit card bill, $300,000 in my name. And I don't want bad credit. I worked really hard for my credit.

And so who had to pay that off? I had to pay that off. Yeah. And I keep running into those nonstop, man.

Steve: It's funny. Right? Because I remember you and I had lots of conversations about this partnership.

Patrick: Yes. We sure did. Right?

Steve: And, like, what was the right thing to do with this and that? And it's funny that she's upset later on that you do this other thing. When you wanted to do those things at this company, she kept saying no. Mhmm. Right?

Patrick: A a bunch of ventures, but she was the biz other business partners that we had, she was more, she liked our valued them and their opinion more than mine.

Steve: Right.

Patrick: And so AJ then then that kind of

Steve: more experience or whatever. Right? But

Patrick: Yeah.

Steve: But the fact is she's upset you did this other thing. But you tried doing over here, and she kept saying no. Right. You kept getting vetoed over here. Like, what were you supposed to do?

Patrick: Right. And she's the main one who drilled that into my head. When is enough gonna be enough? And I'm like, oh, god.

Steve: Right.

Patrick: So then I've got to look inside myself, like, am I am I the wrong one here?

Steve: Am I the jerk? Yeah. Yeah.

Patrick: I was like, what the heck?

Steve: So I know you mentioned it earlier, but what is the book you've given the most, given away the most?

Patrick: The Go Giver. I mean, Go Giver and I kinda hand them out almost at the same time. Go Giver and, The Miracle Morning.

Steve: Why The Go Giver?

Patrick: The Go Giver, just the principles in that book are again, they match, hand in hand with the AA, what you're taught in AA. And I am proof that I wasn't expecting all of this at all. Alls I had was in mind was helping somebody, and I freely give my time. I freely give, resources. I freely give them knowledge constantly.

And the more I give, the more it it Yeah. Comes back.

Steve: Right.

Patrick: 100%.

Steve: Yeah. I mean, just talking about Go Giver, you know, like, it was easy to see. Yeah. Like, yeah, you're able to, you know, join our our community or network and this and that. But you also went out in household.

Right? Again, like, you were talking to Zach Keefes. You're going to the meet us at Brandon Simmons. You're out there making the connections. Right?

Like, you went out there. You you did all the hard work to make this happen.

Patrick: It was, it was hard, especially the, oh god, the the the real estate part, was that you sink or swim. I mean, you come with the knowledge, and I'll give you so you had to learn your own stuff. Mhmm. And so that was hard. And I'm trying to focus on the sober living thing.

But with the Zillow connection, I I sold nine houses my first year, not even trying. And then the sober livings, I got 10 in my first year. So start focusing, more on the sober living, but the connections, your network is your net worth. And that that fortieth birthday party, I I bartended of yours. Like, I I wanted that.

Whatever that was and however I to get next to you, I was gonna do whatever that was. Mhmm. And, just with the people that you have on this show, all of the freaking heavy hitters on this show, the people that you brought into the office, the trainings that you did, the Chris Voss, the Darren Hardys. I mean, it all played a huge role, and it was teaching me the networking and the the waking up early and that, habits. It was very crucial.

So you are very vital into pushing me into those directions to be ready to receive information and to be on a level where my mindset, could go to that next level.

Steve: Yeah. I mean, it was I'm really grateful that you were there for that night. Because I actually mean, that's one of the best memories I have. Right? That's one of my best nights.

Just being surrounded by all your friends and family. Right? Celebrate your fortieth birthday in some super cold. Right? It was still kinda cold that night, with ridiculous views of Paradise Valley.

But

Patrick: Yes.

Steve: It was really cool to have you there. So I want you to think about, a message you'd like to leave all the listeners with. I'm gonna make a couple of quick announcements. Guys, we do have our sales leadership training, coming up. Matter of really now it's a week and a half away.

So if you guys are are on the fence at all, I definitely re recommend you guys check it out. We got Rem Bartlett. He's doing almost a million dollars a month in wholesaling fees. He's gonna give you the blueprint, right, on how to do that. So if you guys haven't checked it out yet, I highly recommend it.

Text leaders to 33777 and see if you wanna come out. Again, figure out how to do a million dollars a month in wholesaling. He's got the blueprint. How can someone get ahold of you? I'm sorry.

What are your last thoughts you wanna leave everyone with?

Patrick: Last thoughts. Again, it doesn't matter where you grew up. It doesn't matter your background. Again, me, I'm, I I was a meth addict at age 11. Three felonies, high school dropout, homeless multiples of times.

I didn't let that stop me from anything that, I wanted to accomplish. So don't let your background where you come from or the hindrances that you may have have occurred in your lifetime. It's about where you start now and the action that you start putting in now. Nothing can stop you. I know people that went to prison for murder that have multimillion dollar companies right now.

Not saying that you should go do that, but don't let, your background or anything hinder you from your goals, your dreams, and to, move forward with what you wanna do.

Steve: And that's perfect. And that again, like, that's the reason why it was so important to me to have you share your journey, you share a story. Let everyone know, like, your past does not define you. If someone wants to get a hold of you, what's the best way?

Patrick: I got the soberinvestor.net. If you want to JV, coach, get mentoring, we have, work with sober investor, and all social media is all, sober investor.

Steve: Cool. Okay. Thank you so much, man.

Patrick: Thank you, man. This is awesome.

Steve: See you guys later.

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

Steve: So, I promised you something some time ago. Yes. And I didn't have it ready. Okay. Alright.

We're gonna do this instead.

Patrick: Okay.

Steve: You're good?

Patrick: I I don't know what it is, but

Steve: This is for you. Right here.

Patrick: I just asked and you act like this. Dang. That is beautiful. So, Steve, one of the first questions I asked in, one of the classes, I asked him, how do I become one of, your millionaires? He said, give me three years.

And I was determined to do it before that time, and I ended up doing it in half the time. Yeah. So sober investor. That is got goosebumps. That's awesome.

Steve: We still have waited three years to give it to you. We didn't wanna rush that.

Patrick: Yeah. Didn't wanna rush it. Oh my god. Thank you so much. Oh, I got a spot for it too.

Steve: You earned it, man.

Patrick: Thank you so much. That's awesome. Welcome. I just asked you. You were like, yeah.

Steve: No. Don't worry about it.