Rentals From $7K To $1.6MM

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

Steve: Hey, everybody. Thank you for joining us for today's episode of Real Estate Disrupters. So we've got David Luckett with Deal Machine, and David flew in from Austin, Texas to share how you would turn $7,000 into that $1,600,000 in rentals. I'm on a mission to create 100 millionaires, and the information on this podcast alone is enough to help you become a millionaire in the next five to seven years. If you'll take consistent action, you will become one.

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Go to investorlift.com, put in disruptors to get 10% off. If you get value today, please hit this hit that subscribe button right now. That way we can all grow together. And this is a live show, so please ask your questions for David to answer. You ready?

David Luckett: I'm ready, and congratulations on launching the sales community.

Steve: Oh, thank you. Thank you very much. It was, it's a it's it's something something we're really passionate about, and we were kinda nervous about how that was gonna go. But, yeah, we we are up and running. So

David: I know you're gonna do well because on the master class, that I got to listen to a couple weeks ago

Steve: Mhmm.

David: You helped me with the problem where I was feeling nervous about giving a lowball offer.

Steve: Yeah.

David: And then you were like, David, we have a problem. I'm not sure, you know, how to give this information to you. You know, how do you want me to handle that? And now we are role playing. Right.

So that was very helpful. Because it's been a while since I did a deal.

Steve: Yeah. I had to get the rest off. You're out there doing deals again. Yeah. So, I mean, I guess the first question is, you know, we always like to ask is what was your life like right before you got into real estate?

David: So before I got into real estate, my eyes were bleeding from working too hard and sleeping with my laptop under my pillow. I'm kidding you not, because what I had done was I built this little tool called chapter builder for fraternity recruitment. I sold it to this, company for $10,000 after working on it for two years Mhmm. Of my side hustle project. And then I was their only software developer.

I was their tech support. And whenever, like, fraternity sorority recruitment comes along, it's like they all use it for that six weeks out of the year. Mhmm. And so I was just getting overworked because they didn't have enough employees, and I wasn't I was making, like, $50,000 and trying to save half of it. So, basically, I was overworked and not having any fun at all, Steve.

Steve: Okay. But you so you created, though, your own tool?

David: I created a tool. Yeah. And then I sold it, like I said, for this company for, like, $10 after putting in two whole years of work on it. And then I actually took a job for a pay cut. I was making, like, 70,000 at Accenture, and then I took, I I made 50,000 to work for them for a couple of years.

Mhmm. But I'm actually so glad I did it because I I did work a lot. I didn't make a lot, but I did learn how they grew that business. Because I had built the software, but nobody was using it. And they were the ones that got people to use it.

So I learned a lot from there, and so I'm really thankful for that opportunity. But to be honest, after a couple years, you know, I was just so tired of Mhmm. Sleeping with my laptop under my pillow or taking the laptop to the bar with me if I was going there because there's always, like, a bug, you know, that would come up that I would have to fix.

Steve: Yeah. You're a twenty four seven tech support. Exactly. So why did you jump into real estate?

David: So, actually, that guy, you know, I I learned a lot from him, and one of the things that he had was five rental properties. And I was like, man, you're really smart. You know, I I really look up to you. Why do you have these rental properties instead of stocks? So from the moment I was in high school, I knew that time was on my side if I wanted to retire early or just have a nice car, like a house with a pool.

You know, I was inspired by some of my other friends that had, like their families had, like, really nice stuff. And And so I was trying to put as much money away as my four zero one k as possible. So saving, like, 50% Mhmm. Was my goal. And he was like, well, the stock market can go up and down, but rental properties, they'll always cash flow no matter what as long as you buy them right and you manage them well.

And so that was, like, ringing a bell because, you know, Warren Buffett was he say, the first rule is, like, don't lose money.

Steve: Mhmm. Right.

David: And so that made a lot of sense because the stock market, I wouldn't have control. And if I paid a financial advisor, you know, I might have to pay them to lose my money. So I was already like, well, I'm gonna pay myself to lose money. But now that I know about rental properties, I'm gonna shift all of my focus to getting a rental property that would cash flow Mhmm. Because I knew that would help me not lose money.

Steve: So you're you're saying you're working for this guy. This was at Accenture, or this is after This

David: was the guy I sold my software called chapter builder to.

Steve: So you sold your company to this other guy?

David: Yeah. The software. It was, like, not really a company. It was more of just a a software with no users.

Steve: To this guy. Yeah. And then do you continue working there so you can kinda see what he did to grow it?

David: That was part of the deal. And it was what I wanted too. Right? I wanted to be a

Steve: grand for the software, and you still had to stick around. Correct. Okay. But you guys have learned from him.

David: Yes.

Steve: So what actions did you take then to start buying properties?

David: Well, I went and looked Before we

Steve: do go into that, when was this?

David: Yeah. That so that would have been, like like, 2015.

Steve: Okay. Mhmm. Alright. So what did you do to start finding properties?

David: What I did to start finding properties was I looked at properties that were for sale, and I ran a quick analysis using a mortgage calculator. And then I would also pull up the rent o meter rent estimate, and it wasn't computing. Like, the math wasn't making sense.

Steve: What what do you mean?

David: Like, hey. This property is for sale for, like, $250,000. The mortgage might be, yeah, I don't know, back then, you know, like, a thousand bucks. Mhmm. And then I was like, well, this thing looks like it would rent for a thousand bucks.

So I was like, how do you find a cash flowing rental property?

Steve: Right.

David: You know? And and I I think his comment was, like, you know, well, I got mine in 2008. You know? It's you can't find deals like that now.

Steve: Mhmm.

David: I was discouraged.

Steve: Right. And you just accepted that, of course.

David: A little bit.

Steve: Yeah. And then?

David: Then I went to a meetup because I was like, well, there's a meetup. Mhmm. Because people are doing this right now in 2015.

Steve: Mhmm.

David: And I was definitely very inspired because people there were finding deals. I learned about wholesaling there, and they gave me the advice to go drive for dollars.

Steve: And this is in Indianapolis?

David: It was in Indianapolis. Yeah. And I know, do you know Steve Richards? He was actually, one of the guys who was, hosting the meetup, and they had a raffle. And, I forget, you know, if you were a new investor, you could enter this raffle, and they gave me an iPad.

I won the raffle. So, like, the first time I went to this thing yeah. So I was, like, went from feeling very discouraged to, like, super pumped.

Steve: Mhmm.

David: And I immediately sold the iPad for, you know, $500 or whatever it was so that I could use that on direct mail. Okay.

Steve: So then you started in direct mail or driving for dollars?

David: I started driving for dollars.

Steve: Okay.

David: My intent was to spend that money on direct mail, but I was having a lot of fun, like, driving around and making my list on my notepad.

Steve: Right.

David: Yeah. Didn't get around to the direct mail too quickly.

Steve: Okay. Because that

David: ended up being a problem.

Steve: Right. So you're driving around looking for properties, driving for dollars, which is what a lot of people talk about when you're first starting and you don't have access to a lot of capital Mhmm. Would drive for dollars.

David: Yep. And

Steve: so you did. Yeah. So how was driving for dollars?

David: It was really good. It was a different time back then. I had a lot of fun finding rundown properties, but I wasn't sending out any mail because it was more fun to send out to drive around. And And then when I got home from driving around when the sun went down, I was, like, ready for dinner. Mhmm.

And then I would maybe, like, watch TV. And so I just got in the habit of driving, which was good, but I wasn't having any, like, contact with these homeowners.

Steve: So you're

David: doing everything? Thinking about it and looking, but I wasn't doing any communication.

Steve: The research. Yeah. You did the first part, got the addresses, and you stopped there.

David: My yeah. I didn't yes. Exactly. That's that's accurate.

Steve: Okay. Why? Well, I

David: was gonna get around to it. At the time, you couldn't send mail

Steve: Mhmm.

David: Unless you had a minimum order of, like, 200 properties. So I think I was waiting to get to 200 properties.

Steve: Okay. So the plan then was to get the list and then mail the list.

David: Correct.

Steve: How'd that go?

David: Well, I was having a lot of fun until I drove by this house that I knew I had on my list, and there was a construction crew out there.

Steve: Mhmm. And I

David: was like, oh, that's really interesting. This this thing's been run down, and I've written it down. And so I I looked it up after I got home, and somebody had just bought it. You know? And I felt like it was for a price that would have made a lot of sense for me.

And I was like, no. You know, I had this, like, sinking feeling in my stomach. Mhmm. And that motivated me to just I was like, I'm not gonna wait till I get 200 properties. I'm just gonna start putting together mail right now.

Steve: Got

David: it. And I had taken photos of all the properties and very quick quickly realized that my photos weren't in perfect order as the addresses I wrote down. So I was, like, trying to match the house up with the actual address, and I was gonna try to put the photo on the piece of mail so so that it would be, like, something that would stand out. You know? Because at the time, I knew about yellow letters, but I was like, let's get something that stands out.

I wanna have the actual photo on there.

Steve: You're taking a picture Yeah. On an iPhone? Yeah. Okay. So you're taking a picture on an iPhone.

Yep. You got the addresses. Mhmm. In a notebook. In the notebook.

Yep. And then you're mailing you're mailing them, but you said you didn't know which one was which. So how did that go?

David: Oh my gosh. It it took so long to figure it out. I was pulling my hair out. Mhmm. And then that's when I realized I was like, there's gotta be a better way.

And that whole next weekend, I actually just kind of whipped together a little map for my phone because I had a software development background because remember I made that other tool. Mhmm. And so it made this, like, primitive map where I could pin the house, and it would, like, store the photo and attach it to the house that I pinned. So at least it would just, like, collect data for me. Right.

Steve: So that's

David: why I did the whole next weekend was just sit down and try to put that together.

Steve: Got it. You're using was, like, the is it the skiff? Was it, the the data, right, the geodata from the photos?

David: Well yeah. So I would take the photo, and then I would click the house. So it would attach the photo to whatever house I clicked. So it

Steve: Oh, got it.

David: Yeah. And then the the Google Maps package would just tell me what address that was. It's called, like, a reverse geocode.

Steve: Okay. So you got now you got that going. Yeah. And now you're sending mail?

David: Well, not yet. But eventually lot

Steve: of the reasons, like, I had to do things.

David: I found this I found this company that would well, first of all, I had to figure out who owns the house. Right? So I actually had hired a VA. Mhmm. They would come in behind me in that dataset that I built.

They would have, like, back end access to this little widget that I made. Right. And then they would actually look up the address. Mhmm. I don't know if you remember the service called Amazon Mechanical Turk, but it was basically It

Steve: was kinda like machine learning before early, early, early.

David: But it was humans that were completing tasks and filling out surveys that you submitted. Right.

Steve: Right. Yeah.

David: Yeah. But it just wasn't reliable because some of them would get out there for, like, a day or two days or three days before somebody would go look up on the Indianapolis Marion County property records what it was. But that's what I was using at first. They they would look up the address. Once that was in there, then I did find a company that would actually send a piece of mail on my behalf Mhmm.

Via, like, a API, you know, computer that's how computers communicate, call. So, yeah, then finally, I got the mail sent out, but that was how I pieced together all these little parts. How long

Steve: did it take from, like, the first time you went driving for dollars till, like, you finally sent mail?

David: It was probably three months, Steve.

Steve: Three months. So, hey, this is a massive success story. But before that, there's a lot of people that struggle in that there's all these things they have to do. I have to wait for this to get right. I have to wait for this to get right.

Right? So we kinda, like, sabotage or hinder ourselves in some way. Mhmm.

David: Do you

Steve: think you were doing that at all in this process?

David: Well, yeah. I mean, I was waiting for 200 piece of mail so I could send out professional mail

Steve: Right.

David: In bulk. Right. So that was a way that I did sabotage myself. Mhmm. And, I wanted the mail to be perfect, you know, to have a photo on it, which I believe helps, but wasn't necessary to get conversations going.

It would have definitely been better to just knock on their door. Right. Yeah. Yeah. Or just mail send a piece of mail that was more basic.

Steve: Yeah. And Brad Daniels talks about creative avoidance. Creative avoidance. That's right. Right.

We find things to do so that we don't do the thing that we know we need to do, which is

David: talk to

Steve: a person.

David: Mhmm. Right? Oh, but I

Steve: was

David: nervous, Steve. Yeah. Because I had never bought

Steve: a house

David: for myself. Mhmm. Let alone try to buy somebody's house that needed work. Right. Yeah.

So I just I was definitely nervous, and that's why I wasn't knocking on any doors.

Steve: So then eventually that changed because now you're sending mail after three months. Mhmm. Now you have to talk to people.

David: Yeah. I started getting some calls. Luckily, it was back in 2015 before spam calls were going crazy to your cell phone.

Steve: Mhmm.

David: I get calls all the time now that say spam alert. Right. And I don't really answer my phone ever unless it's a saved contact. Yeah. But back then, this the calls were just going to my cell phone.

And, yeah, I was getting some sporadic calls. And, the the first deal that I did, it was probably seven months later. Mhmm. But it was the easiest thing in the world because, like, he just wanted to sell this thing, and he was so easy to work with. Right.

He he wasn't kicking tires or anything like that. Mhmm. And so I I really didn't know what I was doing. I tried to get off the phone as quickly as possible with him, and I just said, like, well, how about I come down at, like, 06:00, you know, and take a look?

Steve: Yeah. Yeah. So you're able able to eventually have conversations. That was your first deal.

David: It wasn't a good conversation, but it was one that worked. Yeah. Because he just literally just wanted to get rid of his house.

Steve: So it was effective. Yeah. So what were some of the biggest doubts you faced along the way then?

David: Yeah. So the biggest doubt, along the way was I don't know how to close a real estate transaction.

Steve: Mhmm.

David: And, actually, the way I solved it was before I did that deal from the mail that I just told you about, I actually did buy a house for myself

Steve: Mhmm.

David: That was gonna be it actually had five bedrooms, so I could make sure that three of them were rented out for $5.50 a piece.

Steve: You're already house hacking?

David: Yeah. Exactly. And so I put the $7,000 down. It was like a low, you know, down payment mortgage that I got, and the payment was, like, 1,300. What I was getting from my roommates was, like, you know, 1,500.

Steve: Cash flowing

David: already? Exactly. Yeah. Plus I was living there. So it's, like, making a couple $100, plus I had a free place to live.

Right. And then I saw how the real estate transaction process went. It's like I had never been in a title company or anything like that. But now that I had done that deal, then I was like, alright. I know how this works.

I know what the, like, six steps are that's gonna happen. So that just makes me feel more at ease when I'm talking to somebody about this house that they want me to buy.

Steve: Did you ever bring your other mentor back in or no?

David: So which mentor do you mean?

Steve: The one that bought your software.

David: Oh, no. No. Actually so we, I mean, have a good relationship still. But after when I got that house, I was trying to do that as a move to, like, quit that job and do real estate because I had really been inspired.

Steve: Mhmm.

David: And I knew that this was the path for me where I could work on something that I would still that I would own Because I had sold my my app to him Mhmm. And poured my life into it. I gained a lot of knowledge, but I no longer owned, you know, any equity in that. And so I was like, I've learned enough. It's time for me to shift to something that I can own.

Right. And so I was trying to, the the move with that house hack was like, let me live for free so that way I can quit my job.

Steve: Got it. Okay. So your first deal, awkward, effective, sold it. Did you close on it, or did you wholesale it?

David: So do you mean the house that I house hacked?

Steve: No. Or the Oh. The first direct mail piece.

David: Yes. The so the first direct mail piece, you know, I went and took photos. I had never seen a house like this before. He had his bathtub running so that the pipes wouldn't freeze, and he had his stove running so that the house was warm because, like, the oil based furnace for this house wasn't working anymore. And, Steve, I've never seen one of these things to this day, but it's worth bringing up.

He had a toilet paper FM radio, like a toilet paper holder slash FM radio.

Steve: We're talking about a cam radio, like the one it was like a toilet

David: paper holder, like copper

Steve: around it.

David: It was in the wall, and it held the toilet paper just like a toilet paper holder would do. Oh. But it also was an FM radio.

Steve: Well, that adds value.

David: And it was, like, the toilet was, like, right next to the water heater. You know, like, the the house was not built to code. No? No. And it just had a lot of quirks and everything.

And I remember hearing this piece of advice that if you're not giving an offer low enough that it makes you very uncomfortable because it's so low, then, you're not giving an offer low enough.

Steve: Mhmm.

David: And so I remember looking. I was like, okay. The best house around here is, like, a 100 k. Yeah. And this house is not to code.

Nothing works. The pipes freeze. And I was like, I think I could buy it for $10,000.

Steve: Yeah.

David: But I was like, remembering that quote, you need to feel really uncomfortable. And I was like, well, the mask says I should buy it for $4,000. Mhmm. And so I gave him the offer, and he took a day to respond, but he eventually just said yes. Mhmm.

And I remember when we actually closed the deal, and I had the cash to just buy this thing Yeah. Outright for $44,000.

Steve: You did.

David: You know? And so I remember to this day, they were, like, for sure thought I was gonna demolish the house. Mhmm.

Steve: But

David: I didn't. I fixed it up, and I still have it today. It's like a $1,200 a month You still have that house? House. Yeah.

Steve: Do you still have the toilet paper radio?

David: No. I wish I did. Gosh. That was a gem, but it got it got, you know, taken in the trash out.

Steve: Oh, man. That sucks. We're gonna have to get one of those just to commemorate.

David: Oh my gosh. If you can find one, yeah. I would frame that thing and hang it

Steve: on my wall. Yeah. Alright. So that's the first deal. So you bought it, held on to it, rehabbed it.

Mhmm. How much was it rehab?

David: It's about $65,000. So I didn't have that Yeah. Readily available. And so I went on, like, Credit Karma, which is a website that gives you free credit monitoring, and they also tell you credit cards.

Steve: Yeah.

David: And then there's a category, no interest for a year. Mhmm. And so that's I actually, you know, got four credit cards. And I I remember the Amex BlueDollars card was, like, $22,000 of credit line, which was the biggest one. I had, like, another one that was, like, 4,000, another one that was 10,000.

So, basically, I had four cards I applied in one day and pretty much got enough to cover this and then found a contractor that would take credit cards because not all of them do.

Steve: Right. Most of them won't.

David: Most of them won't. And I found this guy, and, it was going well until it wasn't. And then I didn't hear from him for, like, two months. Mhmm.

Steve: And, you

David: know, whenever the property is just sitting, you're, like, losing money. Right? Because it's not being rented, and then it was just months ticking away on my free interest credit card thing going on. And so I finally, like, figured out, like, they didn't think they could do the project for within the budget. Yeah.

Steve: And so I

David: was like, well, you have to give me a refund because I was inexperienced. I actually paid him more than the work he had done so far.

Steve: You

David: know what I mean? So he he actually owed me money, and it was really tough to, like, get that from him. But, thankfully, he actually did give me the appropriate refund after, you know, like, two months of, like, no work being done. Mhmm. So then I had to go ask around.

It's like, who can bail me out of this situation? It's like, I don't have more money to get this job done. And then somebody actually introduced me to, someone named Keith, And they're like, Keith is my guy who always bails me out of these really tough situations.

Steve: Okay.

David: And Keith finished the job, and we got it done, and we got it rented.

Steve: Got it. Alright. So that's the first deal. Yeah. A little hairy at the end.

David: Little hairy at the end, but, I mean, you don't even have to make a ton of money. Just seeing that it that can be possible Mhmm. Just gave me a ton of confidence to get ready and go do the next one.

Steve: Yeah. So then what about your second deal?

David: So the second deal was a gutter hanging off of a 1,500 square foot, like, ranch, you know, three two.

Steve: Mhmm.

David: And it just had a bunch of peeling paint, and it was again from another postcard. I'd found it, you know, driving for dollars.

Steve: Yeah.

David: And this was a new scenario. The the the past guy, he'd lived there for forty years, and he said he just had surgery, and so he needed to go move into an assisted living place. He can't cut the grass anymore after the surgery that he had. But I was like, damn, that was the final straw? Because you know there's, like, a tarp, you know, is your roof and and all that stuff.

Yeah. So it's funny what the final straw is. For the for the second property, the second deal that I did, basically, both of his parents died, and he needed to settle some other debts that they had within thirty days. So that's why he was looking to get cash for his house. Mhmm.

Steve: And then how was that you did you over ever wholesale a flip or did you keep everything?

David: I never wholesaled anything.

Steve: Mhmm.

David: I almost did a few times. But once I realized somebody was willing to buy it, I was like, this is a fantastic deal. Like, I just wanna take it down. It's so good that you we I could do the burst strategy

Steve: Right.

David: Which, you know, I didn't have a ton of money starting out. So it was either, like, you gotta wholesale it or you've got to do the burst strategy where you have a property that you put zero into and all is said and done.

Steve: Right. So you held on to all these Yeah. Throughout the years. Mhmm.

David: And one one thing that helped me out too was a friend of mine from Chicago had a really nice w two job being a, like, a stock trader or auction trader or something like that. But and he wanted to invest money into something more stable, but he couldn't do that in Chicago real estate, he felt. So he was like, man, if you ever, you know, just need money for these deals, go ahead. Plus, I just quit my job. So you can't buy rental properties No.

Steve: You can. When you

David: just quit your job. Yeah. So the next few deals, I actually did with my friend Nick from Chicago. And, we didn't know each other super well, but we'd known each other for a few years. We met at an internship at AT and T, and and then he provided all the money for the down payment.

He put the mortgage in his name, but he let me own half the property Mhmm. For putting zero into it. So that's how I was able to do several of these BRRRR deals because I just found such a great deal. He provided all the money and the mortgage, and I got to own half the property.

Steve: Got it. Okay. So what were some of your biggest victories along the way?

David: Biggest victory was well, I mean, the first time you do a a burst strategy deal or the you know, you you just wanna see the money come back out, you wanna know that that's possible. So that there they were actually smokers in that property. And so I actually had to renegotiate with him because I had it under contract for fifty five, but then I found out all that smoke can't be painted over. You know, the drywall would have to be replaced, or we'd have to use, like, a really expensive, product to get that smell out. And so I had to negotiate $10,000 off and, Steve, that gave me butterflies.

You know? I I really wanted that deal. Sometimes I felt like when I was starting out, I wanted the deal so bad. I was almost willing to take a deal I know didn't math out.

Steve: Mhmm.

David: And that was that was one of those sticky situations where I'm glad I I held my own and asked for the price that I needed. Mhmm. Because otherwise, I would have gotten in trouble. Yeah.

Steve: And I think a lot of investors, right, cash buyers, they feel like they have to do something or else they're gonna lose it. Mhmm. Right? Yeah. And I think, like, you know, the thing that we always talk about a lot in our sales training is whoever needs the deal the most has the least amount of leverage.

And when we first start, we feel like we need a deal. Feel like we need to win. Mhmm. So $7,000 into your first deal. Well, it wasn't even just 7.

It was 7 plus 65,000 in credit cards. Right. Right? Right. How did you go from that to we're looking here at $1,600,000 in rental properties.

David: Yeah. So, man, that first house that I bought, it appreciated. I mean, it's worth $400,000 now even though I bought it five years ago for, like, $1.90.

Steve: Mhmm.

David: And so the appreciation from that, I mean, that was a huge win. I mean, I the biggest true win was, like, oh, this tool that I made for my phone to go driving for dollars Mhmm. Somebody wanted to go use it. There was a a meetup in town run by somebody that came to buy 30 properties per month, and I was, like, blown away. I was, like, 30 properties per month?

That's insane. Mhmm. And she was like, well, yeah. I'll spend, like, a thousand dollars to try any new marketing method. So, So, like, how do I get this on my phone?

And then I put it on the App Store so she could download it. I set up a payment processor so she could buy a thousand dollars worth of mail. And so, I mean, that was an amazing win because I didn't even want for this to be a business, but it was like, I didn't even try it, and it was so easy. She's willing to spend a thousand dollars to try this new, you know, method. And so, once it was on the App Store, then, like, over the course of a couple years, it it became slightly more popular, and then it just, like, really blew up.

You know? So that that was definitely, like, the biggest win.

Steve: For sure.

David: Yeah. And then I stopped buying rental properties because that was taking so much of my focus. But then now I look back, and I was like, I gained about a million dollars in equity and just appreciation on all these properties. Right. In the meantime, like, they've cash flowed $60,000 net every year.

I really wish I would have bought a lot more of those properties.

Steve: Yeah.

David: So that's why I'm motivated to go buy more now. And I just, closed on one yesterday. Mhmm. So first one of the year, got my marketing going again.

Steve: Yeah. So you said that it blew up. So when did you actually put DealMachine in the App Store?

David: That was in 2017. Like, March or May 2017.

Steve: 2017. Mhmm. And then you came on to our show somewhere, I think, late eighteen or early nineteen.

David: Exactly. Yep.

Steve: So somewhere along the way, I think, you connected with Max Maxwell, Brent Daniels. How how much did what you learned from the other guy buying out your software translate into you creating your own app and then getting it out to the masses?

David: Oh, such a great question. So what I learned from doing that chapter builder app Mhmm. For fraternity recruitment was he partnered with the headquarters to be a consultant, and he offered to go So many start up companies raise all this money, and then, you know, they pay for advertising. Mhmm. And but he positioned himself to, like, provide free consulting and then ended up being a welcome guest to their national conventions where he would then present on, like, the software that can help them with recruitment.

Steve: So And so the the Gary v of Jab Jab Hook.

David: I think that's exactly right. It's providing value and then also being right there as an invited guest when they're ready for a software. Right. And I was, like, blown away by that. I was, like because getting users was, like, the hardest part.

I knew how to build the the software, but I didn't have any, like, users. Certainly no paying users at that time. And so that was, like, that was really just crazy for me to see how he did that. And I think, you know, they he actually build we had we had a competitor. And so the other competitor was called, like, Redwood recruiting, and they went straight to the chapter, to let the chapter buy the software.

But the real value in the way, that guy grew our product was he went to the headquarters, and the headquarters would buy it and then distribute it to the chapter. So that, like, distribution channel was pretty key to scaling up.

Steve: Mhmm. So then how did that lesson apply for you growing DealMachine?

David: Well, I mean, going on your podcast, you know, people trust you. If you're gonna recommend something Mhmm. They're gonna go do it. And so, I mean, I think that's definitely a parallel with, you know, then, you know, Max and Brent Daniels and others also recommended using the software, and that's certainly how we got to, you know, scale up. And we I didn't have any money to run ads or anything.

Steve: Yeah.

David: And but then sharing, you know, the revenue back, to anyone who was referring it was was part of the equation. I think that worked very well.

Steve: Yeah. And that's a model that we're replicating, right, you know, with our sales community. You know, right now, what we're doing is anyone that signs up, they can refer us out and get paid affiliate. Mhmm. Right?

So it's obviously a model that works. Yeah. And so we're gonna be replicating that model for sure. So right now then with DealMachine, I'm looking at the stats here. 10,000 deals in all 50 states.

Right. So, I mean, talk about how that happened and what that means to you.

David: Okay. So that happened probably two two years after, like, I started. Things, like, really started to pick up.

Steve: Mhmm.

David: And then once that once that flywheel is going, it's just, like, people then keep referring it, and it keeps growing and snowballing. So it happened over the course of, you know, four years, but, really, it all happened, like, kind of overnight as well. Like, you know, I I wasn't, like, paying attention to how many people were using it. And then I looked one day, I was like, oh my god. Really?

That many people logged in today? Mhmm. So yeah. And, I mean, and it happened through their own work. Right?

They're still driving they're still going out looking for, you know, properties that look run down, and then they're getting in contact with the owner. So it it just kind of makes it I think one of the reasons why it was successful because I wasn't trying to change anyone's behavior, but I was just trying to make it easier to do what everyone is told to do when they're starting out, which is go drive for dollars. Right. I think that's definitely a key to why it was successful.

Steve: Yeah. Make an app that helps them, not make an app that forces them to change. Mhmm. Yeah. Oh, that makes a ton of sense.

And so you're saying that after coming on this show, you became a millionaire. Definitely. So which when you told me that, I was kinda surprised. Right? Because you're already out there.

You're already making a name, a brand. I mean, I think if I recall correctly and this is a long, long time ago. Right? I think you're one of the sponsors at WeLive. Right?

Yeah.

David: I was the only sponsor.

Steve: The only sponsor.

David: Yeah. I remember I mean, that was, like, big money for me back then too. Right? Yeah. I don't know how much it cost.

It wasn't over $5,000. It might have even been, like, a thousand dollars. Right? But I I, I had met Max at a conference. Mhmm.

And I I believe I was the only sponsor at the first WeLive that wasn't his own company.

Steve: Yeah. Yeah. So, yeah, you've come a long, long way. So yeah. So after coming on the show, you became a millionaire.

David: Yep.

Steve: And then you also talked about because you've got this deal machine mastermind, which I get to come on, like, once a quarter. It's kinda fun. The master class.

David: Yeah. Class.

Steve: Yeah. And you said that you're implementing some of the stuff that I talk about there. But

David: I Personally. I am personally. That's right.

Steve: So talk about that. Like, what are the lessons you're you're you're learning there specifically?

David: So, yeah, with you, I mean, I was talking with somebody who called me back from a postcard. Mhmm. And they I knew that, you know, what I needed to offer was well below what they had said. Right? They said they wanted, like, $2.50, and I was like, well, probably, like, $1.80 might work.

Mhmm. And so I had an honest question about something that was happening for me in real time.

Steve: Yeah.

David: I was like, Steve, I've worked you know, I I, like, actually care about this person. I've talked to him, like, 10 times now. And so they started the conversation saying, you know, please don't talk to me unless you're less than this offer. So we we've kind of gone through all that, and now I feel bad if I or I almost felt like there was a moment where I was like, you know, I feel dishonest because now I've arrived at this number that's definitely below where they told me not to come in at. Mhmm.

So I felt weird telling them that. And I think you gave me the advice of just, like, you know, saying, well, like, hey. Like, we we've got a problem, and I'm not sure how to tell you. Mhmm. And then, you know, they were like, well well, what is it?

Just tell me. You know, tell me what it is. And so then they kind of gave me permission to explain, like, what it was and

Steve: Right. We're talking

David: about bad news.

Steve: Yeah. We're talking about emotional anchors. Right? And the way I describe emotion emotional anchor is basically bracing

David: the

Steve: other party because you're about to get some bad news, like, you know, get them ready for it. Yeah. Right? Because you get them ready for it, it's not so bad. Yeah.

But you just hit someone with bad news. It feels like you're being It does. Disrespectful, dishonest, or so on. Right. So that's pretty cool.

David: You know, I never consider myself a top salesperson. Mhmm. But I love those nuggets that I get from the master class, especially when you come on because you're always talking about sales there.

Steve: Yeah.

David: Yeah. And and now I started my own podcast, the Deal Machine Real Estate Investing podcast, where we interview people who have done their first deal. Mhmm. And so you can't be a, you know, expert salesperson just doing one deal as well. Right.

But you still hear, like, checks for $30,000. Mhmm. And it's it's about at the beginning finding somebody that just needs to sell just much like my first deal

Steve: Right.

David: Where it required no skills other than showing up for the appointment, asking them a bunch of questions

Steve: Mhmm.

David: And then giving an offer that I probably feel a little bit weird by just because I'm not used to thinking of a house could be that cheap.

Steve: Yeah. Yeah. Well, you definitely gotta reset your your your perspective and framing Mhmm. On money for sure. But, you know, this is the we talk about, you know, there's multiple phases in a career, in a business, and the first one's marketing, which is what DealMachine does.

Mhmm. And then after we get the marketing working, then you gotta be able to sell them. Right? So that's what we offer. Now one thing that is, like, a really trending topic right now.

Right? You can't go anywhere, I believe, without hearing about AI. Right. Right? So how do you think AI is gonna impact business or real estate specifically?

David: Yes. Well, Adam, I'm also so excited about your sales community too because although you can get some deals without being a sales expert Yeah. To scale up and get the money that you're spending from your marketing back, you do have to actually close deals and Absolutely. Skills get the deals.

Steve: Yeah.

David: So the question was, can you say the question more time?

Steve: AI how do you see AI impacting our industry?

David: Yeah. So, I mean, AI is so new, and it's changing so fast. Yeah. I played around a lot with chat GPT. Have you played with it?

Steve: You know, this sounds terrible, but I haven't. Okay. You know? For me, it's just like someone's gonna figure this out. And once they figure it out, I'll just copy and paste.

That's just kinda my mindset.

David: Yeah. Yeah. Oh, well, so one of the things I've been using is you I'll do a podcast episode. We do about, like, twenty minutes

Steve: Mhmm.

David: Talking about their first deal. And then I want to summarize and write the summary. Yeah. I could paste the whole transcript in chat g p t, and then it can give me a summary and a title. Yeah.

And oftentimes, I'll say, okay. Do that again, but focus it on how they went from, you know, being homeless to doing $30,000 getting a $30,000 check. Mhmm. And then it does it again. I'm like, oh, okay.

That's right. It's better than what I would write. Yeah. And it's a lot faster for sure.

Steve: It's definitely a lot more productive than we than we are. Mhmm. So I was just at CG Select on Monday and Tuesday, and we have Devin Robinson speaking. And Devin Robinson, do you know him? He's I don't

David: I don't know Devin. Yeah.

Steve: I think he's out in in Carolina, but, like, super, like, charismatic kid, you know, and he's talking about all these things with AI. And now and as I'm watching him talk about it, I was like, oh my goodness. Like, the applications out there are endless. Mhmm. Right?

But the one the two that he shared that made the most sense to me has nothing to do with real estate and everything to do with media. Right? Because he's like, yeah. You know, there's this new one, Munch, where basically you just upload your video, and it'll just make all the shorts from your long form content and subtitle it.

David: Oh, cool. I haven't used Munch, but I've used Opus Pro to do that.

Steve: Yeah. And then another one he was talking about was, autopod, which is basically you just have two cameras running the whole time, upload both feeds, and then AI will figure out how to splice it so that only the person that's talking is on camera. Yeah.

David: And he says Huge time saver.

Steve: And I think it was, like, an hour of video content was done in, like, forty five seconds.

David: That sounds about right. Yeah. It's incredible. It's so productive. It's nuts.

Well, so in the real estate world, you've got very powerful AI tools, but they don't have access to all datasets. One of the datasets they don't have access to is real estate properties, what's for sale in the MLS, who owns what property, etcetera. And so, basically, in DealMachine, we've created a chat TPT like assistant using that technology, but then also giving it access to our dataset. So as a beginner, like, one of the things I struggle with is, like, man, it's there's, like, some lack of confidence when I'm not really sure yet what the house is worth in perfect condition.

Steve: Mhmm.

David: So but but you can ask it that, and it knows, that data. And so we, so I can get, like, the ARV for the house right before or right whenever a seller calls me. I can just, like, type it and chat it, and then it can tell me. And if I'm curious, like, well, how'd you get that? It'll break down, like, how it calculated the comps.

Mhmm. So that's one thing I'm really excited about because it it personally helps me, and then it's in the DealMachine mobile app now.

Steve: How's that different than, let's say, like, Zillow or Redfin or PropStream.

David: Yeah. Well, it's a AI chat, so you're just chatting with it. So instead of having to know where certain buttons are, or look at, you know, Zillow to So

Steve: it's a user interface.

David: Yeah. Exactly. Big big user interface. And And then you can ask you questions like, well, how did you calculate this? You can't ask Zillow how they calculated this estimate.

So it can give you more understanding, especially as a beginner, on how, like, how comps are being run, for example. And it knows your whole chat history too. So if you wanna say, like, tell me how much that it would probably cost to renovate this house. You know, it might ask you a few pieces of information, and then it can help you subtract that from the ARV. Mhmm.

It knows our, like, our common rules, like the one percent rental property rule.

Steve: Mhmm. And

David: it can also help negotiate a little bit too if you're like, well, what would I say to the seller if they didn't want this offer? And it's not as good as the sales community.

Steve: Yeah.

David: But it's pretty cool that it's in the palm of your hand in real time.

Steve: So everything you're saying sounds really awesome. I think I'm a bit of a nihilist. Right?

David: What is a nihilist?

Steve: Someone that has, like, a negative outlook. Right? Because

David: So like a pessimist? No.

Steve: Because I'm generally an optimistic person. Okay. Just, like, a nihilist is, like, kinda like, oh, the end's gonna suck. Right? So, like, no matter what we do, the end's gonna suck.

And so where I'm going with this is, like, if everything's automated, what's stopping us from being those fat people in Wall E? Right? Do you remember those? Mhmm. You ever watched Wall E?

Mhmm. Right? It's like everything was AI. Everything was automated. Right?

Like, they're just drinking big gulps and, like, eating, like, liquid food or whatever.

David: Yeah.

Steve: It's just, like

David: Kind of like in the matrix where they're just getting pumped full of, like, food and then they

Steve: Kind of except in the matrix, at least we were, like, being used with batteries. In this one, you're just, like, fat and, like, useless. Gotcha. We will see what happens. Yeah.

We will. Alright. So But it's

David: like giving I would say, it's like giving somebody superpowers.

Steve: It is.

David: It's giving them, yeah. It's it's not automating it. Mhmm. But it's helping, I think, a beginner get past some of those things that prevent them from having confidence.

Steve: Yeah. But, like, I look at something like auto comping, right, which I mean, that that idea has been around for a long time. Right? It's the reason why Zillow even exists to begin with. Mhmm.

I'm just wondering at which point is, like, do we require someone to use their brains? And at which point it's like, it's just done for you. Mhmm. And if it doesn't require brains, how valuable are we? Right?

Like, these are the kinds of questions that I kinda ponder. Because, you know, something you and I talked about before the show was, you know, I preach hard work. If you work hard, you'll be successful.

David: Mhmm. Right?

Steve: Because that's the message that was passed on from my parents and has been passed around for generations forever.

David: Pressure makes diamonds. That's how you raise your kids.

Steve: Yeah. Right?

David: I follow your content.

Steve: Thank you.

David: I know.

Steve: Right? But this is not the direction it appears to be as far as society. So those are the kind of things I wonder about. So, you know, one of the things that you've also talked about was work life balance. Mhmm.

So how do you manage work life balance with everything you got going on?

David: Yeah. I used to work a lot. I used to work from nine to five, then I would have dinner, and then I would go work from, like, six to 9PM. Mhmm. But after, like, a year of that or two, I realized I was neglecting my friendships.

I didn't have any hobbies. I had gained some extra weight, and I wasn't really sleeping that well even though I was pretty exhausted. And so, you know, I kind of had, like, a wake up moment where I did the 75 hard and put a barrier. My business partner has been married the whole time that we've been in business. I I I own deal machine 50%.

Mhmm. And so he also felt like it was very important for him to have family time because if you're only doing work, you have no family time. Right? Or Right. Time with your kids, and that's important, I hear, for people that are married.

Steve: Yeah.

David: Yeah. Yeah. So he, actually encouraged our company to have, like, a hard stop at 5PM. Mhmm. So we work from nine to five.

And then at 05:00, you're not allowed to send emails. You're not allowed to send Slacks, and that's become a company culture of ours. Mhmm.

Steve: And

David: one that I've really enjoyed and appreciate, I always schedule something for 05:30. That way, I've got to be getting up from my computer and, like, going to do something. So, I would say I'm I'm really glad that he did that because I wouldn't have had the discipline to do that because I just wanna work. It's very important for me to get, like, the certain outcome, and so that's why I was working so hard and all the time. It was the most important thing.

Steve: So, really, it was just setting the boundaries on work hours.

David: Yeah. And having a partner, thankfully, that led me in that direction.

Steve: Mhmm.

David: And then, also, I think it's a huge perk for why the the team members that we have at our company also enjoy working at our company is because they're not getting emails that disrupt their dinner. You know? And we're using the Slack send later message or the email send later. So that way, if you have an idea that you wanna get off your stream of consciousness, you can write that email, then you can just send it tomorrow morning first thing.

Steve: Yeah. Got it. So you were here about a month ago month or so ago, right, for Brent's event. So you and I were chatting.

David: Yeah.

Steve: And one thing that we were chatting about, which I was kinda, like, telling you, I wanna see more content around it. Mhmm. Was you like to race cars? I do. Talk about it.

David: Yeah. Normally, it's really expensive, but and and and it was never something that I thought was accessible to me ever. But my friend invited me to this thing called the twenty four hours of lemons race. And so for those of you that are racing lemons. There's a race very famous called Le Mans.

You know, like, the twenty four hours of Le Mans. It's like Ford versus Ferrari. Mhmm. That movie features that race.

Steve: Mhmm.

David: But this is actually a lemon. So it's gotta be a car that's worth $500 or less, not including safety equipment. You can then that you have to then have, like, a roll cage and a fire suppression system and the proper harness and seat. But other than that, like, the car is worth gotta be worth $500.

Steve: $500.

David: And you drive it for twenty four hours with a team of four drivers. And so I got invited to be one of these drivers. Mhmm. I had never driven a race car. I'd never driven on a racetrack until the actual race was going on, and I was the second driver to go.

And he, like, strapped me down, and it was so uncomfortable because the seat was not built for somebody as tall as me. Plus, I just never been in a race car. And then I was like, dude, I there's no way I can drive in this. I I I feel so scared. He just shut the door.

He's like, drive slow. Just be careful. And so, you know, while the active race is going on, I mean, I did my first lap so slow Mhmm. And then just got faster and faster and fell in love with that feeling of just getting better at something. Yeah.

Yeah. So that's how it started for me.

Steve: Twenty four hours Mhmm. Four drivers. Yep. Six hour shifts?

David: We do we did, like, two hour shifts. And I think me, I can't he's like, just come in when you're done. I think I did, like, an hour and then came back in. But then quickly, I was like, oh, man. I wish I was back out there again, and I had to wait my turn to get back out there.

Steve: Okay. So there's shifts. Yeah. Yep. Gotcha.

That's fascinating. So, yeah, I'd like to see more content around there about that. And then you were talking about the importance or how to be successful in any market. That's an interesting idea. Yeah.

What is that about?

David: Well, so one thing that's been really fun, being the owner of DealMachine and seeing people close, you know, 10,000 deals in 50 states is to know that it's really possible. I think a lot of times when you're getting started, you think, oh, my markets it doesn't work in my market. It's too saturated here, or it's too expensive here.

Steve: Mhmm.

David: And so I've just seen people get their first deals in every market, so I know it's possible. One thing to keep in mind is to be around people who have had success in that market. Anecdotally, if you're driving for dollars, if you're in, like, a lower cost market, you might need to find, like, 300 rundown homes. If you're in the highest of high priced markets like Seattle, you might have to find 2,000 rundown homes. Mhmm.

Steve: And

David: then you need to communicate with them six times each at least. Mhmm.

Steve: And

David: if you're in a market that's in between those price points like Atlanta, you might have to find, like, 900 properties. And so I've noticed there's a sliding scale that seems to correlate with the average price of the house. And so that does mean it takes longer and more money to get started in a market that's higher priced, but, also, the reward is larger because the deal size is larger. So your percentage that you're taking as a wholesaling fee is gonna be larger as well. So it has a big payoff.

I I know that it's possible, and I know that when most people say, oh, my market's saturated, they've only added, like, 12 houses most of the time. So they've just gotta know that it takes you you know, there's a mass side of it in order to be successful. It's very helpful to take the emotion out of the marketing and just know the math and keep going until you've hit the numbers that you think you probably need to hit.

Steve: Yeah. Because you hear people like, you know, it it does like, I'm calling. Is that working? How many people are you calling today? Like, 10.

It's like, well, this will never work.

David: Mhmm. Yeah. You gotta do a little bit more than that.

Steve: Yeah. Who was the guy? Booth. What's his name? Zach Booth.

Zach Booth.

David: Yep. Right?

Steve: Because he's In Utah. Yeah. So he does really well. Yep. Drive for dollars.

And he he's he's coached people up as well. It's the same thing. Right? Like, here are the metrics you gotta be accountable to. Yeah.

If you're not gonna be kind of these metrics, then don't even do this. Mhmm. Yeah. So you've broken it down to a science, which is awesome. And then, you decided to go from Indy to Austin.

David: Yeah. I did. Indianapolis was fantastic. I lived there for seven years.

Steve: Mhmm.

David: Actually, so You're

Steve: not even from there? No. So what brought you to Indy?

David: Well, when I sold that chapter builder software, most of the fraternities and sorority headquarters are in Indianapolis. Interesting. It's a huge nonprofit headquarters place.

Steve: Okay.

David: Because the American Red Cross in the twenties lobbied for some preference, for, like, you know, the tax rules for nonprofit, so it attracted a lot there. And we were selling to the headquarters, so that's why I went there. But, Austin, I went to some race car driving schools. There's a skip that's called makes

Steve: a lot of sense.

David: It's called Skip Barber. Yeah. So I I got I caught the bug. Right? And I was like, I gotta go to one of these races again, but I don't have a car, and my friend's not doing a race.

So how do I do this? I found out, out about a school. It's called Skip Barber Racing School, and they do schools that tracks across the country, but they had some at, Circuit Of The Americas in Austin. So So I went to one in November, and I went to one in February. And then I was coming back in March for something else.

So I noticed in Austin, it was 70 degrees and sunny, probably like it is in Phoenix in February. Yeah. And Indianapolis was cloudy in 30 degrees. So I was like, I'm gonna stay here for six weeks in between these two trips to Austin, and then I just never left. After, you know, after my March trip, I was like, I'm gonna get a six month lease and try it out a little bit longer.

And then I ended up selling my house in Indianapolis and then fully just being in Austin. So I've been there for a year and a half Yeah.

Steve: So far, and I love it. What do you love about Austin?

David: Not only the weather. I mean, it does get really hot, but I'd rather be hot than cold. Mhmm. It's sunny 30 to 300 degree 300 of the year. There's a ton of entrepreneurs and, business owners in general.

Right. It's a big part of that culture, and I like being around that. Mhmm. And I would say those are the the biggest factors. There's I also like there's a lake right by downtown, and, I've never, like, been around boats or water much, and so I've taken up wake surfing and learned how to do that.

But, I mean, I just, that's probably, like, a secondary thing that I just enjoy.

Steve: Being super, super fit.

David: Yeah. I'm I'm actually getting pretty fit too. I'm doing, I'm working out six times a week. Mhmm. And I'm eating, like, a special, you know, diet that my trainer prescribes for me.

Steve: Yeah.

David: And so I'm really enjoying that. It makes me feel good. And, it's actually requiring some discipline, which I think translates over to, you know, work that I'm doing as well.

Steve: I'll translate some business really, really well. So there's something that I wanted to do. Right? So, you know, again, you and I were talking. I wanna say, was this at maybe a CG?

One of these events you and I were talking, and you're like, oh, yeah. I became a millionaire after the show. I was like, really? You thought you were a millionaire before you came on the show? He's like, no.

It was after.

David: I sent you the tax returns.

Steve: Yeah. I know. Yeah. Well, that's crazy. Okay.

So then that's the case, then

David: What what is this?

Steve: Deserve you deserve one of these. Are you serious? Can I

David: open it? Yeah. Open it. Amazing.

Steve: I mean, if I was part of the journey

David: This is amazing. I'm gonna put this on my desk. Yeah. Thank you so much, Steve.

Steve: For sure. No. Congratulations. I

David: appreciate that.

Steve: I mean, like, I remember when we got first introduced. I I don't remember exactly how we got introduced.

David: Yeah. I think

Steve: it was probably Instagram. I think you were DMing me by looking back. But I remember, right, like, okay. David, I mean, he's a big deal. He's already, you know, established in some way.

He's known. But, yeah, let's have him on the show, and you're like, that was the thing that gave you the credibility.

David: Mhmm.

Steve: And that's what really pushed the momentum.

David: 100%. Yeah. Thank you so much. Ah, that's amazing.

Steve: Absolutely. I mean, that's that's Cool. For me, that's like again, I know I'm making this by myself. We're saying create a 100 millionaires, but for me, like, it's totally fulfilling, And it's awesome to see what people are able to do. Right?

David: Mhmm.

Steve: In one facet or another. So, you know, if you guys are interested in what we're talking about as far as, DealMachine, you know, we haven't really pumped it up a lot. It really wasn't about DealMachine today. It was really more about David and his journey. But if you guys are interested in DealMachine, go to dealmachine.com/disruptors.

Use the promo code red, and you get a free seven day trial of DealMachine as well as $30 free in your account, which could be 200 free skip traces or 50 free postcards to reach sellers. And we know it works because we just talked about it works in 50 markets. So Right. We got some questions here. Before we jump into the questions, let's go ahead and take a quick, quick break.

David: We're giving them the GPS of what they have to do to show up every single day and execute with excellence and stay in the revenue driving activities. If you have a rep that is not producing, it is your fault. You have to have and hold that responsibility and get down and coach to where they need to be. So let's create that mentality for them. They are running their business.

We are terrible at terrible at reading people when it comes to performance inside of how they're gonna operate your organization. 90% of people that are in sales roles do not know what a peak key performance indicator is. But they need to have a fundamental understanding of how that KPI specifically to them drives revenue and more than that, how it drives their income. It takes a different level of person to get to that six figure mark. Let's hire to the six figure mark.

Steve: Alright. So going to the audience here on YouTube, Larry, Larry Bush, what are your thoughts on buying turnkey rental properties?

David: So I personally have not bought any turnkey rental properties.

Steve: Mhmm.

David: I personally wanted to put in the effort to go get that deal where I could have zero money into it. Mhmm. I know a lot of people that buy turnkey properties have, like, a really big salary. They don't live near a market like Indianapolis where they can cash flow, and they wanna be totally hands off. Mhmm.

That's not me. I think personally that nobody's gonna, like, actually take care of my money as good as me if I have the real estate skill. But if I didn't, then turnkey is a great way. I would prefer turnkey over a REIT, because I think that there's more transparency when you know the exact property and

Steve: all that. Yeah. Yeah. I would never recommend a REIT. Knowing what I know about REITs, about Wall Street, and all that, I would never recommend a REITs.

So before we continue, just for everyone, what is turnkey?

David: So I would define a turnkey rental property as one that you can buy from a turnkey provider that is ready to go. It's fixed up, and they are going to provide the management as well as placing the tenant as well. And so, basically, you don't have to do anything but just provide the down payment and actually buy the property.

Steve: Yep. IG, I got Global Loopy. My brother, Ferrari d. Love you. Sol on YouTube wants to know, Sol for L'Oreal, how does DealMachine break down barriers to entry in real estate investing?

That's an interesting question.

David: That is a good question.

Steve: Yeah. Yeah.

David: So for me, DealMachine broke down the barrier of feeling, you know, scared to talk to somebody. I I wasn't door knocking, but I could look and see where their house was run down, and then I could just send out the mail. And, one of the other barriers that broke down was I wasn't following through with my mail. I was actually just looking at the houses, but DealMachine broke down that barrier, made it a lot easier to look up who owned it and send mail, and then repeat the mail every twenty one days. Mhmm.

And then now the AI assistant can tell you what the ARV is. Mhmm. It could help you estimate the repair cost. It can tell you if it's a good fixer flip or wholesale, how it would analyze those. And it can help a newbie just quickly see via a specific property that they're looking for how they can be analyzing the deal.

Steve: Right. And just in general, right, like, DealMachine helps people drive for dollars, and drive for dollars has been historically the best way, to get started in real estate with little little money down. Global Loopy, again, thanks for providing on, David on. I appreciate you for you brought us in a game.

David: Thanks, Loopy g.

Steve: AI entrepreneur. How do you see AI changing real estate? We already talked about that. How do you see it changing business?

David: Well, I'm pretty excited about I mean, I I can't even predict all the changes. Right? But, you know, it's already changed how we edit our videos. It's changed how we summarize our podcast.

Steve: Mhmm.

David: It has changed how we analyze our properties. And I do think probably there will be an AI image recognition that takes a look at Google Images and finds the rundown properties and auto drives virtually for you as well.

Steve: Yeah. That's that's fascinating. I, there was, I was talking to Paul over at Townsquare. Right? And he was telling me about, like, how he's made it his purpose to demonstrate you can buy a house using only AI.

David: Oh, really?

Steve: Right? He's like, six months. That's my target Mhmm. To be able to buy a house using AI Mhmm. Of salespeople.

Mhmm. Right? He's like, all you had to do is just upload all these calls of, let's just say, for example, David's conversations.

Steve: Mhmm.

Steve: And we just upload all of David's conversations. AI can obviously replicate the sound and figure out how you would answer a question the seller would ask if it has enough data. So it's fascinating to see where this thing goes. So, again, Devin, he was talking about, at the on his presentation on Monday was that AI is not gonna replace you specifically. It's gonna be those that are using AI are gonna replace you.

David: Yes. I think we need to learn how to use it. Yeah. Right. Includes you too, Steve.

Steve: Well, we have the people here to figure that out. Right?

David: Yeah. That's true.

Steve: These guys will figure it out. I don't have to be the one that figures that out. Mhmm. But, yeah, it's not that it's not that you're gonna get replaced by AI. It's the person that's figured out how to use AI is going to replace you.

Mhmm. Right? So it's either, like, get on the train or get run over by the train. Yeah.

David: I mean, it's like learning how to use Microsoft Office or you're learning how to use a smartphone. Right. You have to know how to do those things in order to work now. Yeah. If you refuse to do that, there's little jobs that you'd have that you could be able to do.

Steve: Yeah. You're gonna be out of you're gonna be eliminated. And then software. How do you see it impacting software?

David: I think it's gonna be a lot easier to start software companies because I've already seen it at my company that the development team has, like, superpowers. And, you know, my cofounder was actually putting something together in Python, and he doesn't even know how to write Python code.

Steve: Yeah.

David: But the, he was actually just telling the AI, like, you know, write me something that does this that connects this to this, and it was writing in Python because that was what it, needed and what was the best language. And so it's amazing. You know, I still need my team, but they're just more efficient right now. So I think that because of that, you won't see, like, startups that raise so much money to build so much product because it's just gonna be reducing the cost it takes to build product.

Steve: Yeah. So my brother is a genius, software developer, and he he mentioned to me, like, if he were so inclined, he could go work at all these other companies. Right? And he thinks he can manage probably five forty hour jobs

David: Five jobs. A week. Five would be a record. I've definitely heard of a couple people doing two. Yeah.

And, they were just so productive.

Steve: Yeah. He's saying he could probably do.

David: Company is fooled.

Steve: He could probably get away with five is what he's

David: Oh my gosh. Yeah. That's insane.

Steve: He is an excellent developer. Right? I mean, he is, like Mhmm. Upper crust. Mhmm.

Right? So that was what he was he's like, there's no reason why I wouldn't be able to get away with it. It's just do I even wanna do that. Yeah. Alright.

So it's interesting times for sure. Saul wants to know, what's your favorite car to race?

David: So I personally have a 1991 Miata.

Steve: '91.

David: Yeah. So it's got a 100 horsepower. What's so great about it is it's a, like, a local club that has this race where everyone has the same exact car. And so you strip it down, you take out all the insides, you put the roll cage in, and then I've got, like, a data collection system and a camera. And so because it has low horsepower, you have to understand how to go around the turns as fast as possible at the edge of grip, which, is very it's like not an easy thing to do.

If you go around the corner two miles per hour, the whole straightaway is gonna be an average of multiple miles per hour slower.

Steve: Mhmm.

David: You know? So you can really go a lot faster by just mastering the corners and figuring out how to drive. The horsepower is not gonna make up for your errors.

Steve: Mhmm.

David: And then you also have to worry about crashing a car because the whole car is worth $4,000. You know? So that's what that's, like, what I race. Right? Like, that's what I the only thing that I race right now.

So that's actually been really fun. And those cars are historically, like, the best car to learn how to drive on. So that's where I'm at right now, and I really like that.

Steve: The very first car I ever drove or had was, I wanna say, 1985, Pontiac 6,000. I don't remember exact year. It was 85 horses. 85. Wow.

Five horses. It was an awful, awful car to drive. Right? And then I remember, like, my friends will always laugh because it just took forever to get that car going. Right?

Especially, you know, imagine that you're turning onto a main road. Oh, yeah. Right? It was it was it was it was terrible. And what made me laugh was my dad eventually sold that car.

And then we get a knock on the door from the police. Right? A detective. And they're like, we wanna know who you sold this car to. We're like, why?

What's going on? And, like, well, it was used in the bank robbery. Oh my gosh. And I was thinking, who is robbing banks in an 85 horsepower car?

David: Yeah. They won't be able to get away.

Steve: Well, they clearly did. They clearly did. Maybe they were doing those race lessons that you were using.

David: Yeah. It's all about the corners. It's all about the corners.

Steve: The heck do you rob a bank in a car that slow? Blew my mind. Follow-up question. In what ways does a steel machine streamline the process of identifying, evaluating, and capitalizing on real estate opportunities?

David: Gotcha. Yeah. So in addition to driving for dollars, you can actually it it it's like a mobile app first. And so no matter where you're at, you can pull properties that are, you know, expired listings or high equity or probate or maybe they're gonna be sold at a tax sale soon. So you you can pull all that data from the mobile app and then send out mail to them as well.

Yeah. So that in addition to, you know, the comps and the driving for dollar streamlining that we talked about earlier

Steve: Yeah.

David: Would be the main ways that it would help out there.

Steve: So the old machine's coming a long way since we first connected four years ago. Mhmm. So it sounds like you're incorporating a lot of data into the app now. Yeah. What's the reason for that evolution?

David: I think the reason for that evolution is just people were wanting to try other things besides just driving for dollars or especially if they've had success driving for dollars. Some may build a driving team, but some may go on to be building a list, and and wanna try that as well. Mhmm. So we just wanted to make that as easy as possible. I think the biggest difference is probably that it's all focused mobile app first with a desktop, like, companion Mhmm.

Where I think the other options require you to use the desktop when the mobile app can do some things.

Steve: Yeah. So the mobile is where it works.

David: Mobile is something I personally believe is, like, critical. I I wanna do everything as I'm out in the field.

Steve: Gotcha. And then you decided to start a podcast this year.

David: I did.

Steve: What was what's the thought process behind that?

David: Yeah. So I would say 80% of the people that use DealMachine, they're just looking for their first deals.

Steve: Mhmm.

David: And we actually listened for a little while to every feature request we had. But then that prohibited beginners from having as much success because there were more buttons to click, and it was not as clear that the only thing important is to add distressed properties and send mail. Yeah. That was the only two things you need to do. So we spent a lot of time about two years ago really simplifying the experience so that it is clear and we lead somebody down the right path.

And then also the increasing the quality. Right? So there's, like, no bugs. There's there's no lagging on the map. There's no crashing.

And then I realized the next step to make the beginners successful, which is the core person who gets value from our app, is they need more than what just the app can do. So that's why, you know, we bring on experts like you to talk about sales training, and we also incorporate stories of how people have accomplished their first deal and tenth deal on the podcast. The whole purpose of the podcast is to provide the information a beginner would need to close a deal that isn't in the app, essentially, like talking with a seller, for example. And so that's the purpose of the podcast is helping people get that first wholesale deal.

Steve: What is the difference that you're bringing? And I I asked this in a way, like, you know, there's a lot of podcasts out there. You and I were talking about a moment ago. Like, it's a lot challenging in 2023 than it was when I started in 2018. Mhmm.

And especially compared to, like, you know, you you look back, like, you know, the legends. Right? Sean Terry, I think he started, like, in 2009. Yeah. It's a completely different environment for creating content.

Mhmm. How are you planning on differentiating, your podcast today?

David: I think a unique perspective is it's with one of the most successful deal machine customers, Ryan Haywood, who's done 400 deals just driving for dollars. Mhmm. And then it's also me who's been, you know, working with beginners for the past, like, six years and seeing that those deals are done all across the state. So I can provide with that big picture look of, like, well, it takes, you know, 300 properties in this market or it takes 1,500 properties that look rundown in in that other market. And so I I I think that's the unique aspect.

But if you see any other unique aspects, let me know.

Steve: Alright. Definitely. Definitely will. So what does your business look like today

David: Yeah.

Steve: Versus, you know, five years ago?

David: Yep. Yeah. So five years ago, I mean, it was just probably, like, four people. Mhmm. Me and my cofounder, his name is also Dave.

He's, like, the CTO, and then I was the CEO. And so that's how we always divided up our our duties. But now we've got 30 employees. About half are on the support and success side. About eight are on the product and engineering side, and then about, you know, six on, like, the the admin or finance side.

Steve: Mhmm.

David: And so that's how the business is structured now.

Steve: What does your life look like now compared to five years ago?

David: Yeah. Five years ago, I was working, like,

Steve: you

David: know, fifteen hours a day. Mhmm. And now I get up at, you know, 05:30 eastern time, and I go wake surfing every day. Yeah. Yeah.

So I'm not working on the weekends. I'm not working on the evenings, but I'm focusing on, doing my own deals, doing the podcast, which is really fun.

Steve: Mhmm.

David: Now filming four episodes per week. Four? Yes. Dang. Yeah.

Mhmm. Well, you do daily. Right?

Steve: We do three a week. Yeah. We do three a week. Yeah. But this is, like, our core focus.

Right? Like, this one and and and fulfilling Mhmm. Sales training we've already sold. Got it. Yeah.

So yeah, four weeks pretty intense. Mhmm.

David: So, instead of focusing on, like, what what does the product look like, I'm more focusing on, like, communicating, and that's become a bigger part of my my job. Right? Communicating through the podcast Mhmm. Communicating through my social media content or communicating through my leaders that I have because that's one leadership lesson that I've taken away is if I jump in and do coding myself because I know what needs to be done and I can just do it, that makes my team feel like they're not doing a good job or I mess up their process and it makes their life more difficult.

Steve: That's what I do.

David: So if I'm failing to work through the leaders I've put in place, I'm failing as a leader in general. Yeah. And so I've definitely taken more of that to heart. Right now, I'm not coding. I'm not doing anything like that.

I'm always working through my team.

Steve: Yeah. Anytime I go in there and and do stuff, it breaks something. Mhmm.

David: Whether It breaks their heart and their process. Yeah.

Steve: Either the tool or something bad will happen Yeah. Because I skipped the step.

David: They they thought I didn't trust them

Steve: Yeah.

David: When I was doing that. And I was like, damn. That's not true.

Steve: Yeah. Well, you know, there's actions and then there's words, and that's the you you say you trust them, but it does come across, right, and it sucks. What is what is your why?

David: Yeah. So starting out, I wanted a really nice car. You know, I I wanted, like, a Yeah.

Steve: That's the reason why I started.

David: Really ball

Steve: our house. Yeah.

David: Yeah. Yeah. Yeah. And so now it's more about, okay. I've had those things.

They do make me happy. Like, I really like my Ferrari.

Steve: Mhmm.

David: I like that a lot. Yeah. But there's always a next level. And the next level yeah, maybe it's like another nice Ferrari, but not just because I can. It would have to be tied to, like, a goal that I achieved Mhmm.

And celebrating me becoming a better person. You know, I'm always reading. I read 15 books last year, which was a big increase for me. Mhmm. And reading again, you know, this year, I'm wanting to become a better person.

Like, I my whole business was built on someone who understands how to how to get attention on social media and refer it to you deal machine.

Steve: That's

David: that's how people found out about it. And so that's just a skill I'm fascinated with building. I've been posting on social media

Steve: I've noticed.

David: And learning about hooks Mhmm. And learning what makes things interesting and, what people are interested in learning. So I'm just, like, having a blast just like learning without even a specific outcome besides I just wanna learn how to do this. I want to learn how to communicate better.

Steve: Yeah. Well, learning how to communicate better is a whole different level or a whole different set of challenges.

David: Yeah. But it's like that's like all life is really is communication. Yeah. Yeah. So I think that it's exciting to think about what could happen if I can just get better at that.

Steve: Yeah. Well, that's that's one of those things that it seems like it should be pretty easy. Right? Mhmm. Because we've done we've done our whole lives, but all we do is muck it up.

Yeah. What is your biggest struggle today?

David: Yeah. So what is my biggest struggle today? I would say that growing a podcast has been a lot harder than I thought it would be. Mhmm. And so if I think about what's my biggest priority versus what's harder than I thought, I would have to say the podcast.

See, I've got much respect for you and how great and far real estate disruptors has run Mhmm. Made seven people a millionaire, and I'm sure there's more out there who haven't contacted you because they're busy making millions, or maybe they don't even know they're a millionaire yet. I think that happens frequently where people It

Steve: does.

David: Hit the milestone and didn't even know it yet.

Steve: Mhmm. Yeah. Yeah. So what are you doing then to address that struggle of of getting the podcast out there?

David: Yeah. So I'm telling all my friends.

Steve: Mhmm. I'm I'm

David: posting, short media clips, and I'm really enjoying interviewing and and increasing the amount of interviews that I'm doing and being consistent, which was advice from you. Right. So it feels good to be putting in those reps, And I'm reminding myself that it's a whole lot like finding your first real estate deal because you can't quit after sending 10 postcards. You've gotta understand, like, what it took others to be successful and to put in those similar type of reps. And so I'm enjoying the process and, not getting too hung up on the outcome at the moment.

Steve: It's all about the work. It's all about the work.

David: I could tell you this. I've gotten a whole lot closer with my cohost, Ryan, who's been a customer for years, but that's been super rewarding. Mhmm. And then just interviewing customers as well, getting to know more details about their life story has been, like, a huge joy of the podcast.

Steve: Yeah. That's awesome.

David: Otherwise, I I only see them on the master class, which is a group setting, so you don't get to know them as well.

Steve: Yeah. That's awesome. Getting to work with the people that are getting to know better the people that you've worked with.

David: Mhmm.

Steve: Yeah. How do you stay motivated?

David: Okay. I stay motivated by, I wanna get I I actually set arbitrary goals

Steve: Mhmm.

David: And I attach rewards to them. So you mentioned earlier you gotta put the chocolate on the broccoli.

Steve: Yeah.

David: And so, you know, do I do I need 50 more rental properties? No. But do I want a Ferrari f 40 that costs a million dollars in of itself? Yes. And so I wanna get that when I've got 10,000,000 in equity in my properties.

Steve: Yeah.

David: And I know that would just make my life better because then when you have that passive income, it's like, it doesn't really matter what happens. No. Because you're gonna be fine. You're not gonna be worried about, you know, what's the volatility like. You're

Steve: market proof.

David: Yeah. Exactly. So, you know, I having that additional confidence, it seems like a really good thing that's gonna help me enjoy the rest of my life.

Steve: Mhmm.

David: But then attaching it to that goal is, like, the chocolate I sprinkle on that broccoli, which is, like, the work to actually get there and do it.

Steve: Yeah. That's awesome.

David: So do you have anything that you'd really look forward to? You said you wanted a nice car. Right? I know you have a Tesla.

Steve: Yeah. I think for me, it was to get that, it's gonna be hard now because I just got a new car. But, the Tesla Roadster. Right? Like, it was supposed to come out two years ago and then last year and then this year, but that Roadster with the SpaceX upgrade.

David: Oh, yeah. With, like, the cold thrusting rockets?

Steve: Yeah. With the rocket thrusters. Dude. Right? So I wanted a Tesla Roadster with the rocket thrusters, but I don't know what Elon's doing.

He's screwing around, you know, on Twitter and whatever. But

David: I know. I this is my perspective of what happened was the Roadster was gonna be the the car that did zero to 60 in less than one point nine seconds. Mhmm.

Steve: But then Which is super critical.

David: Yes. But then the Porsche

Steve: Mhmm.

David: Came out and beat the Tesla model s at the, like, you know, like, whatever track that was.

Steve: In Nurburgring. And

David: yeah. Yeah. So then then they made a new s that did zero to 60 in less than one point nine seconds. Right. Yeah.

That's the car

Steve: I had. Well, there's that.

David: So then I feel like it made the Roadster less appealing because it was you know, it's like how much faster can it go?

Steve: But it's still super sexy looking. Right?

David: Oh, it's super sexy. And then the rockets would make it go even faster.

Steve: Right. Yeah. Right? But it just

David: I don't know.

Steve: Practical applications. Right? For those of you guys wondering why you need rocket thrusters, so you can corner harder. Right? Because the thrusters are supposed to

David: pull up with the steering wheel. Yeah. Yeah. Exactly.

Steve: Yeah. So is it necessary? Who knows? Right? It's subjective.

But What

David: was your new car that you got?

Steve: I actually got another model three. Cool. Right? Like, for looking around at all other cars. Right?

Because I looked at the, the the Porsche Mhmm. Taycan. Right? I looked at all these other cars. I already had a Tesla model three.

I love that thing. Mhmm. Right? And, like, I could regularly corner 50 miles an hour. It's no big deal.

It's glued to the road. Yeah. So, like, as I was looking around, I just thought to myself, I really love my car. Mhmm. Right?

I'll just get it again. Yeah. Right? Did you want one

David: Did you renew the lease on the same one, or did you get a new one?

Steve: I got I bought this one. So the last one was a lease.

David: Because I took your advice and leased. Well, I

Steve: bought this one only, and this is a really stupid reason. Right? I only got this one because, you know, the inflation reduction act K. Right, where they're giving people $7,500

David: to buy cars. Back again. Yeah. But you don't get it unless you buy it. Right.

That makes a lot of sense.

Steve: So Yeah. I'm getting a car. We're, like, in 2022, we still have the supply chain crisis. I was looking around. It's like, well, if I wanna buy my car again, it's like $63.

It's like, I don't know if I wanna spend $63. What do I wanna do? Who knows? Right? And then, you know, economy went to crap beginning or towards the end of or 2022 and and so on.

And so and then with the inflation reduction act, this car I wanted to buy for 63 is now available for 55 because Elon lowered it so it would qualify for the tax credit.

David: Okay.

Steve: And then so 55 minus the tax credit is $47.05.

David: Now it's like, woah. That's

Steve: So this car, I was like, do I wanna buy this for 63? I don't know. I don't know which way to go. Mhmm. Or I don't wanna spend a little bit more.

Now it's $47.05. I feel like I have to buy it. Yeah. Yeah. Good.

Leasing it does not allow you to get that tax credit. Right. Makes a lot of sense. Yeah. So I'm gonna wait for the roads there in the future.

Mhmm. Yeah. What is your superpower?

David: Oh, that's a good question. I would say my superpower my superpower is discipline. Mhmm. I I started I did the 75 hard. I found a trainer.

And then he was like, David, do these workouts, eat these meals, and I just did it. Right? I, like, did it every day so much so that all of his clients, they were actually doing bodybuilding competitions. He had to tell them they need to shape up like me. I'm not even doing a competition, but he's like, David does exactly what I say, and he never complains.

He comes in this gym so happy, and all you guys do is complain you're hungry and all this stuff. You know? So I heard that, and I was like, oh, I'm gonna, like, double down on that. Yeah. Because it was, like, relatively easy.

I liked I liked that it was making me look better. I liked that it was, like, something to do. So I woke up. I knew exactly what I had to do without thinking.

Steve: Mhmm.

David: And so I think that that's definitely been a superpower for me. It's just getting up and, like, doing that kind of stuff, doing those kind of tasks.

Steve: Mhmm.

David: And, that stuff just compounds. Right? So it makes me feel better and better every day. I said I was, like, the happiest I've been ever, I think, in my life. Yeah.

I certainly think that's, like, a part of it.

Steve: Yeah. Well, that's that's awesome. Right? Just sticking to a diet Mhmm. Committed to your health, happier you've never been.

I think that's phenomenal.

David: But I was upset for a brief moment when I wasn't getting, like, big. I'm not taking any juice or anything like that, so it takes a little longer to build muscle than I was seeing other people. And that really got me frustrated. But once I let that go and and then just focus on, let me just show up every day. Let me just do what he says, and I'm gonna forget about trying to measure the results.

Steve: Mhmm.

David: Well, then the results come. Right? Because then you just get in a groove. It becomes standard. You do it over long periods of time, and then, like, you do look better.

So Yeah. Yeah. That was, like, a good lesson, and I think that's, the discipline is my superpower.

Steve: Oh, that's awesome. What's your biggest regret?

David: Oh, boy. Alright. My biggest regret is, not thanking you enough sooner, Steve, for having me on your podcast and telling you that you made such a big impact in my life. Yeah. In in all seriousness, I think that, a thought I was recently having is, like, men give few compliments.

Men give 30% of the compliments. Apparently, women give 60% of the compliments.

Steve: Mhmm.

David: And my team and as a CEO, like, I feel like my job is to become, like, a compliment giver, a praise machine.

Steve: Mhmm.

David: And I didn't know that until, like, the last couple of years. But once I started kind of, doing that, my, team members were like, man, I it's just made a huge impact on me. I love my job so much. And my default is, like, not to give compliments. My default is to ask questions.

And when somebody's showing you something that they just worked really freaking hard on, and all you do is try to tear it down, not intentionally, but just out of question asking. You know what I mean? It doesn't feel good. And so I I regret not implementing that sooner. One I I got that thought from a couple places, but one was a book we got in Collective Genius called, like, the three things the CEO must do.

Mhmm. You know that book? Yeah.

Steve: By Troy Taylor. Yeah.

David: Yeah. He was like, you gotta become a praise machine.

Steve: Mhmm.

David: And so implementing that, I heard a lot of positive feedback. And so I it makes me feel good that people are happier, and it makes me happier too.

Steve: Alright. So I'm gonna check that one out. Or not check that out. I read the book. I guess I gotta try this.

What book have you gifted more than any other?

David: Yeah. I don't give a lot of books away. I should probably give some books away, but my favorite book was this book from my assistant that she gave me Mhmm. Called Humor Seriously. And it kinda goes along the lines of giving praise.

Mhmm. But, it is why you should use humor in business situations where most people think you should be serious. And I've certainly been guilty of just being, like, super serious guy, only, you know, business focus, only logical. But the key takeaway from that book is, like, you should as long as you make a joke that is not inappropriate, even if it's not funny, people will think highly of you. They will think more of you for making the joke.

And so I try to make jokes as much as possible, especially in a remote work environment where we're all signed in on Zoom and the meetings can be pretty dry and people kinda tune out. Yeah. They need to hear the good info, but it's also like, creates memories if you can just, like, make jokes, be silly. You know? Yeah.

Do you listen to the all in podcast?

Steve: With It's like David's ad.

David: Four billionaires. Yeah. And they they give these

Steve: I don't listen to it, but I I watched clips of it on TikTok on a regular basis.

David: Oh, okay. Yeah. I it's it's quite popular, but I stole something from them where they give these, like, silly intros. Right? You got, like, the sultan of science, and I've got the built the animal of finance on my team.

Like, I give them intros that pump them up before they give their, you know, virtual reports for our all hands meetings. On the

Steve: on the master class.

David: I try to implement it as much as possible, especially over Zoom. Yeah.

Steve: Yeah. Yeah. I think Chimath, I think is his name. Yep. I really love how that guy thinks.

Right? He's just he's he's an out of the box thinker. And I think that's the clip I saw. I I I really, I really enjoyed this one. Right?

And he basically says, there are too many overeducated dumb people that we're delegating important decisions to. Right? He's talking about all these people, like, look. Nothing's improved in the last twenty, thirty years in government, in academia, and this and that. Mhmm.

It's like, man, that's that's what I totally believe. I've never heard it Yeah. Put that way. But,

David: So that book's called Humor Seriously.

Steve: Yeah. Well, I've always been the one to inject humor. It's never been, like, appropriate, though. It's always been, like, inappropriate humor. But Yeah.

David: I think inappropriate is a little subject. Right? Yeah. Yeah. Yeah.

If it's going to offend someone

Steve: Well, it's never said with with to be mean Mhmm. But could definitely be received as mean.

David: Oh, here's the other thing too is whenever you're in charge Mhmm. You need to learn to make fun of yourself. Mhmm. It works to make fun of other people unless you're in charge. Mhmm.

Not making fun of them, but, you know, like

Steve: Yeah.

David: Cracking jokes.

Steve: We jazz on each other, but we also rip rip rip on ourselves as well. Mhmm. Yeah. No. I know I've never taken myself seriously.

You know, it's interesting. Like, I have people that that, like, think I'm just, like, super intimidating person. Right? I guess my demeanor is, like, really serious, especially in the show. Yeah.

Right? But then in you know? And that's one of the reasons why we did part in the disruption because people see this other side of me that's, like, you know, laughing, having fun. But, yeah. People say, like, there's a few things that always surprises them.

One is that, I actually have a sense of humor. And then, the other one is that my favorite TV show for the longest time was South Park.

David: Oh, no way.

Steve: And then the third thing is that I grew up on gangster rap. Like, they're always, like, surprised. Mhmm. Because

David: you're straight laced into business on this show.

Steve: Yeah. Right? But I am human. Right? Yeah.

So, a couple of questions from YouTube before we we wrap it up here. Yeshuni, at the top of the mountain in REI, where do you go now? Interesting question.

David: Wow. I don't even consider myself at the top of the mountain. Mhmm. I a few a few places I've been tempted to go is people who do multifamily. Mhmm.

They're like, dude, why are you wasting your time with these single family properties? And for me, I've chosen to continue on the single family route just because I like it, and it's what I know. And I only have 10. And it makes a lot more sense if I have, you know, twenty, thirty, or 40. And so I just am excited to continue building my, you know, rental portfolio there Mhmm.

Instead of getting tempted with shiny object to do a bunch of different stuff that other people say is better. Multifamily is scary right now. It is because they have the interest rates and stuff, and they have trouble refinancing.

Steve: Yeah. I invested in multifamily beginning of last year. I'm a little nervous.

David: It's It's just a different game. It's just a different thing to learn. Yeah. And so it just it works too perfectly since I help so many people with single family, and I already have single family for me to continue focusing on that.

Steve: Yeah. Someone's talking to me like, see, you should, like, raise a start start a fund and start buying, like, commercial properties. Like, no. No. I shouldn't.

Like, why not? It's like, because I can't go borrow money from David on an asset class I know nothing about. Mhmm. That just screams like a recipe for disaster. Like, what was that guy?

Right? He, like, he defaulted, like, 3,000 doors in Houston.

David: Oh, wow. I didn't know about that. Yeah. That's like a

Steve: that was like a couple months ago. Like like, he he fled the country.

David: Oh, wow. That's serious.

Steve: Yeah. I mean, that's a lot of doors. Mhmm.

David: He

Steve: brought a lot of money for yeah. You know, he was a shining star, right, for some guru until he wasn't. Yep. And then yeah. So, he'll come.

Like, we just need the blueprint for 7 ks in millions. How long in doing what? So you just have to rewatch this episode. I'm sorry. So I want you to think about some last thoughts you wanna leave, all the listeners with.

Guys, again, you know, we just launched our sales community, something I'm super excited about. We got a bunch of sales assassins from across the country. I I'm hoping when I look back years, decades from now, that this would be the biggest thing we've ever done. So if you wanna get better at sales, go to our sales community. You will get better at sales.

I promise you that. And if you got value today, please subscribe. Don't keep us a secret. Right? Let's let other people know about us, and the best way to do that is actually to subscribe to the channel.

That tells YouTube that we're still relevant. And to, and next week, we got Brian Driscoll coming in with, motivated leads. The guy is a master at digital marketing, so you won't want to miss that. So, what are the last thoughts you'd like to leave everyone with?

David: Yeah. I would say don't quit too soon whenever you're first looking for that first deal. Or if you're trying to climb the mountain, to the top of the mountain of real estate investing, check out the promo code. It's r e d. Mhmm.

You know, to get a seven day trial, try out the real estate AI, try out the driving for dollars, get the free postcards. And then you guys, I would love to have you listening to my podcast and letting me know what you think of it Mhmm. Because it's all I've been focused on this year. Yeah. And that's the DealMachine real estate investing podcast.

Steve: Awesome. Awesome. Awesome. So what, someone wants to get a hold of you, how would they do that?

David: Instagram is my most, like, popular social media, and I'm d le c k o, d l e c k o, on Instagram.

Steve: Perfect. Efren on YouTube says that he saw you at two events this year. Didn't have the pleasure to thank you in person. Wanna give thanks. His first deal from DealMachine made him $50,000.

David: Who was that?

Steve: Efren Ortiz.

David: Efren. Man, where can I contact Efren?

Steve: Efren, you better send a message

David: Leave a comment.

Steve: To David.

David: Yeah. I'll look you up. Congratulations on the deal.

Steve: Yeah. Fantastic. Alright. Thank you so much, David.

David: Steve. I really appreciate it.

Steve: Thank you all for watching. See you guys all tomorrow and pardon the disruption.

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