BONUS: Raising Private Money with TonyandGreg.com
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Itunes – www.TonyJavier.com/itunes
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Bio: This is a monthly REI Mentorship session with Greg Helbeck and Tony Javier.
They talk monthly about marketing, raising money and other crucial topics that Real Estate Investors need to know.
If you want direct mentorship from 2 of the best in the business, go to www.TonyandGreg.com to get access to these monthly calls.
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Show Transcription:
Tony (00:00):
So guys, welcome to our monthly mentorship session. This is Tony Javier and Greg Helbeck here with me. Uh, if you’re listening somewhere other than zoom, you can register on zoom@tonyandgreg.com and you’ll get access to all of our future calls. We do this monthly for our community and our audience, uh, to give back, we get a lot of requests for people to jump on and pick our brains. And so this is a way for us to, to do this in one call and, and provide a lot of value to the, uh, the real estate community. So today we’re going to talk about how we’ve raised tens of millions of dollars for our real estate deals. So, uh, Greg, what’s up, dude? So you’re in New York. You said you just got them playing golf.
Greg (01:08):
Yeah. I played 18 holes today, uh, keyed off of like eight, 10, me and a couple of my friends. Uh, they’re all real estate guys. So we got to just chop it up. Um, I think I, I won the match and um, I beat my one buddy by a stroke and I definitely let him hear about that. So, um, I’ve been playing a ton of golf, man. I mean, I’ve been playing almost every day. It’s a sickness.
Tony (01:29):
Yeah. I’m the same way with pickleball man. You and I talked about this the other day, how you, uh, you go out and play golf to relieve some stress, get away from business, talk business with, uh, some, some high level real estate guys. And I love just going to pickleball man and playing two or three hours hitting the heck out of the ball competing and, and, uh, just clearing my head man. So good stuff, dude.
Greg (01:51):
That’s right, dude. That’s right. I should have fricking picked this, should’ve picked up golf in California. I might not have moved back.
Greg (01:59):
Such an idiot. It’s like, I want to play it every day.
Tony (02:03):
You’re going to be coming back here in like what October, November, most likely. Cause you won’t be able to play golf and probably come in November.
Greg (02:11):
Yeah. Either there or Florida I’ll have to decide, you know?
Tony (02:14):
Yeah. Florida is closer, but San Diego is way cooler, man.
Greg (02:19):
Yeah, that’s true. Florida’s a weird place. There’s a lot of weird stuff going on there. So I’m excited to talk about private money today and uh, just, just raising money in general. I mean, there’s a few ways to skin the cat, um, done a lot of hard money, done a lot of private money. I’ve used my own money. Sure. A lot of people have done that. We’ve done some smaller purchases. And I say, we just kind of talk about, I guess your best way have how you’ve been successful doing it. I’ll talk about how I’ve been successful doing it. And I’m sure we’ll cover a lot of ground within that. And then we will, uh, open it up to Q and A and make this a good one. Just like all the other ones are.
Tony (02:58):
Yeah, man. Absolutely. First of all, let’s talk about why you want to raise private money. Right? So like a lot of people when they get in the real estate game, they wholesale, which is great. Nothing wrong with wholesale. The issue that I’ve had with wholesaling, the few things I’ll kind of touch on those real quick. One is, uh, you’re on a timeline, right? If you don’t wholesale the deal within a certain amount of time, the deal goes dead, right? Um, two is the, I guess that those are probably, these are probably the two main ones. Two is the amount of money you can make closing on the deal compared to just wholesaling. So closing on the deal, you can either fix and flip, which I’ll just give you some quick numbers. If we, if we wholesale deals in Wichita, Kansas, we could probably wholesale make 10 grand, you know, on a deal, give or take.
Tony (03:42):
If we wholetail fix and flip that deal, we’re going to make 30 to 50, maybe even over 50,000. So it just makes way complete sense for us to close on the deal and make way more money flipping that deal or wholesaling it. For those of you who don’t know what wholesaling is, it’s basically closing on a deal, uh, cleaning the property up, not doing a lot of work and putting it on the MLS and an email with the way the market is right now. I mean, people are making a lot of money wholetaling deal. So I’ve got a guy in my mastermind group and I told him, I said, he said, he’s only making like 12 grand a wholesale deal. And I said, you know what? You need to find some private money. And he said, actually I already have private money. He goes, I just don’t want to close on these deals.
Tony (04:21):
I said, do me a favor, just try a couple deals, close on them, wholetail them and see, see how much more money you make. And he closed on one. And I maybe I told this story last call, but, um, he made a hundred grand on two deals. And if you would have wholesaled those deals, um, before closing on them, he would only would have made about 20 grand. So we put them on the MLS number, um, went way over, asking price, ended up making five times the amount of money, which just a little bit of extra work. So that’s, that’s why I like talking about raising money is because you can take the deals you’re getting, which can be hard to find and optimize them by making a lot more money by closing on them and figuring out what to do with them after that. So
Greg (05:04):
And you’re in total control too. I think this is something – I made a podcast on this that was very popular and I made a statement and people probably disagree with me, but I really don’t give a crap. I said, wholesale, if you’re really good at wholesaling, I think wholesaling is a very hard advanced strategy. And the reason I’m saying that is because you are in the middle, right? So you have a timeline. You have to really know how to negotiate well on the I side, and most importantly on the sales side, that’s where a lot of wholesalers get destroyed. They’re scared to sell their wholesale deals. That premium comes in.
Tony (05:45):
Uh, Hey Greg, you’re cutting out a little bit. I think you’re reception is a little slow.
Greg (05:50):
That’s the whole take the deal down. It’s so much easier when you communicate with a seller. You’re there now?Better?
Tony (05:54):
Yeah. You cut out a little bit for five to seconds.
Greg (05:58):
When you can just, are you able to buy the property? It’s so much easier to deal with the seller because you don’t have to worry about, oh, well this guy’s got to close and that’s got to happen. It’s like, you know, you’re just closing on it and you have the ability to close on it. And I have found wholesaling the right way is a lot harder than, than, just closing on the property. I mean, it’s just, it’s just more complicated. There’s more, um, you’re in a, you’re in a tougher position as a, as a principal when you’re wholesaling, in my opinion, because there’s too many, there’s a lot of points of failure on the transaction side.
Tony (06:31):
Yeah. Last thing I’ll say before we jump in, I had someone post something the other day. They asked is wholesaling ethical? And I think the short answer is probably yes, but at the same time, there’s that conscious thing of, okay, I’m tying this thing up for 80 grand. I’m selling it to someone else for a hundred grand. Um, why wouldn’t I get my license and help them sell that for the, the more money and just take a smaller piece of the deal. So I’m not saying that it’s unethical, I’m not saying that, you know, making 20 grand spread is not something that you should or shouldn’t do to make a living, but at the same time, like there’s still that thing of going, man, I’m talking to this guy into selling for 80. When I know it’s worth a hundred, 120 on the back end. Now and then wholetailing –
Greg (07:18):
Yea, you’re kind of making a profit off of their ignorance.
Tony (07:20):
Yeah. And then the other thing, and again, if you’re wholesaling, you know, I’m not saying that I totally agree with that. It’s just in my mind, I’m in the gray area of going, is it, or is it not right? And then the other part of it is like, so if you’re closing on it, fixing it and selling it, that’s a whole different ball game because you’re adding so much value to that property. Um, so for you to make a bunch of money on that, you’re taking the risk, that kind of thing. And then wholetailing is in between. It’s like, you’re still closing on it and adding value because you’re finding the money to close on it and, and get them out of the situation they’re in for sure. And, and, you know, finding the cash to, to get them the money, no matter what, no matter whether you have a backend buyer or not. So anyway, just something I thought I threw out there. I don’t know if you have any, any thoughts on that or had any conversations with other people, if you have something to add to that.
Greg (08:09):
Glad you brought that up. I’m glad you brought that up because I’ve felt that way before. Like I, I think the way that I mitigate that, because I do a lot of wholesaling, like 50% of my businesses wholesaling, I am so transparent with the seller on what my intentions are and I’m so upfront with them on, on what their options are as well. Uh, I don’t feel bad. Like we make big wholesale fees, like huge, huge, huge, and I don’t feel bad because they know that they have a hundred percent autonomy in their decision and they know that I’m an investor and they know they can always get more if they were going to list it. And I truly am there to help them. Um, so I never really feel bad about that, but there have been times where I have been like, you know what, and I’m, I’m making, you know, $50,000 on this property and, uh, they can have just put this on the MLS and they would’ve made more money.
Greg (09:02):
But I think the biggest thing that, that gets me to justify that is that they know what their options are and they’re choosing to sell to me. Right? So like, they’re not like I’m not pressuring them or manipulating them into doing something they don’t want to do. They’re convincing me that they don’t care about the property and they want to just get an easy offer. And because of that, I don’t really think it’s an issue. I think with you, someone is like going out and talking smack about agents and saying that, oh, it’s stupid if you list your house, you just sold to me. And I think that’s where you can really look like a charlatan, but if you’re doing business the right way and you operate with integrity, and more importantly, if you have the ability to close on the property, like you could wholesale the house, but if you can close, if you needed to, that’s a big deal.
Greg (09:49):
I think if you can’t close and you have no ability to close, that’s where I have a problem with wholesaling because you essentially being a real estate agent without a license, but I can buy the house. And that’s what we’re going to talk today. How to get the money to buy these houses or apartment buildings or whatever. So I think if you have the ability to close and you choose to wholesale, I think that’s fine. But if you are, um, tying up properties with no intention to close, that’s when you should probably get out the business and, um, either work for another investor until you have some money or learn how to raise money by watching the show and then just be able to close yourself.
Tony (10:18):
Yeah. The disclosure part of it’s a big thing, you know? And then, you know, we had a wholesaler in, in Kansas city, send us a property, uh, to my team in Wichita. And they said it needed $15,000 worth of work.
Greg (10:30):
That’s like my bathroom. That’s like my door in the bathroom.
Tony (10:34):
Yeah. They found this property. They put it under contract. They sent it to, uh, here’s the thing. They told us. They wanted us to buy it for 105,000. They said it needed $15,000 worth of work. Um, the seller, when, when my team looked at the property said that they got it tied up for 77,000, which I don’t, I don’t mind them making money if they make 30 grand whatever. But my team goes out and looks at it. And they’re like, well, first of all, it doesn’t need 15,000. It needs like 50,000. And second of all, like this property is not worth 1 0 5. It’s worth like 55 because so much work needs to be put into it. So again, we can go on a tangent about this. Like there’s some really good wholesalers, like I know you are. I know a lot of really good wholesalers, but then I know a bunch of people that go out there and ruin the game for people, because I guarantee you, they are not going to close on that property. They’re not going to find a buyer for 77 or 105 is what they’re buying for. Even if they, even if they sell it for 85 and make a little bit of money, there’s no way they’re selling it for 85.
Greg (11:35):
So they’re walking away. One more thing to add to that. I’m sorry to go on this ramble here, but this is something that’s important is you said something with the wholesaler. This is a huge mistake I see wholesalers make. And if they’re watching this, this’ll save them a lot of time and effort. As you said that this idiot wholesaler, I think they know I’m an idiot. I’m sorry, but that’s an idiotic move what they did. If you’re really good at wholesaling, you do not put the ARV. You don’t put the comps. You don’t put the repair estimate. You put the price, the address, the next steps. You always want the buyer to do their own numbers. Because the last thing you want is a buyer taking your word and then getting screwed or vice versa. You got to give facts, not opinions. ARV’s can be an opinion. Rehab costs can be an opinion. Some guys can get a cheaper than other guys. Some guys think it’s worth more than others. You got to give facts, less information you give within reason the better you’re going to do. Um, and then that allows the buyer to look at the deal and figure out what he can pay. And if it’s priced right, you’ll sell it. That’s just a little tip that I have learned throughout the five years of doing this business every day.
Tony (12:43):
And if you are going to put numbers either number one, make sure they’re realistic. Number one. And number two, if you’re not sure at least put a range, like, you know, cause to say something $15,000 worth of repairs and we got pictures and there’s like literally holes in the ceiling and stuffs falling down. Like just the sheet rock by itself is going to be five to 10 grand. And you had the roof work – sheet rock and roof were going to be 15 grand. Anyway, we can go on a tangent about this, but let’s talk about raising private money. Cause that’s what we really want to talk to people about. And I think that’s what people tend to enforce. So let’s create a baseline for this. So first of all, I’ve been in the business 20 years now. I’ve been raising money since day one.
Tony (13:23):
The very first property I bought was no money down first, 10 to 20 or 30, maybe even a hundred where no money down. I still buy properties that way today. So I bought my first two properties, no money down, had my dad give me the down payment, uh, or actually lend me the down payment payment, ended up paying him back. He co-signed on the property and I was able to get in the money, into the property with no money down. And then I soon found construction loans. And back then you could use the after repair value to get the loan upfront. You can use that for the total loan amount now these days, but most lenders will require at least 10 to 20% down. Um, so we’re going to talk about how to raise private money either for first mortgage lending, to where you can get a hundred percent of your deals finance, which is what we do.
Tony (14:09):
And then also we can talk about gap funding, which is, you know, if you can find a hard money lender to fund your deal, like almost any deal you find, you can find a first mortgage lender. It’s just how much money they’re going to require down. What are their closing costs and how are you going to come up with that money? Right? So –
Greg (14:25):
And make the monthly payments.
Tony (14:26):
And make the monthly payments. So I came up with a program for real estate investors to fund those down payments. So I’m actually doing the funding for those down payments. Um, I’m not the cheapest guy. Like I tell people all the time, like I’m expensive, cause I’m taking money from deals that I could save money on that I’m paying investors pretty good rates on and putting them into their deals as second positions. And it’s very high risk. Um, but if you want to find other real estate investors or other people, individuals to fund your deals, we’re going to talk about how to find them, build trust, um, build automation behind it. And then what are, what else do you want to add to that, Greg, as far as what we want to talk about today, and then you can give your kind of snapshot of where you are with private lending.
Greg (15:13):
I think it’s had to like present an offer, how to present a private opportunity to somebody and not sound like a wiener about it. You know, just, just being cool about it and finding the right people and not getting ripped off, um, and understanding how to communicate a deal without sounding like a salesman or sending desperate and really letting the deal do it. Dude, the deal sell itself, you know, I’ll get into that. So I’ll let you kind of get started with, with your, um, your pillars and then I’ll cover mine. And I guarantee you, the listeners will walk away from this just the next 40 minutes with some, some real good information to use.
Tony (15:50):
I’ll tell you what, I’ll, I’ll just throw out a question or topic and then we’ll all give my opinion. You give your opinion and we’ll kind of go down the line. How about that? Because I could literally talk the next 40 minutes about it. Yeah. So, so the first thing is where do you find private lenders? Where do you find cheap money? Um, so for me, um, my dad, like I said, for the first several properties, he helped me out. Um, but I think the main thing is finding individuals that at any point in time, you can send a deal to, and they will write a check for your deal. So for us, we can get a hundred percent of renovation, a hundred percent of repair costs covered up front from our private lenders. And you know, part of that’s obviously we have the relationship with doing this a long time, but really it comes down to, in the beginning telling as many people as possible, what you do.
Tony (16:38):
So when someone asks you what you do and Greg, tell me if you have, uh, something you say to people, but there’s something that’s very cool once you start doing. And even if you have, if you haven’t done a deal yet, you can still use this line, something to the effect of when people say, what do you do for a living? Um, some to the effect of, I make real estate investors money, uh, on real estate deals passively while I flip properties, something of that nature. So you’re basically telling them that your job is to make money for other investors. And in return, you’re getting something back with flipping properties or rentals or however you want to preface that, right? So in their mind they’re going, oh wow, you make money for other people. And then if they’ve got money and if they’ve got money sitting on the side, they may say, oh wow.
Tony (17:25):
I thought about investing in real estate. I’ve got some money. How do you do that? Opens up the conversation. Whereas if you just say, oh, um, you know, thinking about investing in real estate or I’m looking into real estate or whatever, it’s like, no, you are in real estate. If you, if you started getting real estate, you need to act like you are in real estate and talk to as many people about it as you can. So I’ve raised private money from just randomly talking to someone in a gym locker, which I know is a weird place to tell, randomly, start talking to people. But yeah, totally. No. And, and the interesting thing, that guy that I found, we just started chatting up in the gym locker. He had a million dollars invested with me in less than 12 months.
Greg (18:06):
Wow. That’s crazy.
Tony (18:08):
So you never know where they’re going to come from. Um, I found them hiking in Switzerland. Um, I mean, you can just, you name it like I’ve probably talked to an investor somewhere, somehow and, and just randomly got investors in some of the weirdest locations. So, so that’s the first part of it is talking to people about what you’re doing or what you’re wanting to do. And then that starts the conversation and they get intrigued and interact. Cause everybody wants to invest in real estate. That’s why flipping shows are so popular these days is people want to get into real estate. They know it’s a great avenue to make money. So Greg, tell us about how you found your, some of your private lenders and what you do to, to raise money for your deals.
Greg (18:47):
Yeah. So, uh, social media has been pretty helpful. I’ve just put out, you have to be careful on how you present that. You can’t deliberately say, like, I’ll give you a 12% return. I see some idiots in my area do that. And I’m just like, can I visit you guys in jail to buy a, to buy your old leads that you can’t work anymore. Now, but seriously. So you, you gotta be careful with that. But like, I like to say, like when I use social media, I’ve raised capital for deals that way. Basically I have an opportunity. Um, I’m looking for some capital for a project. Um, if someone wants to get involved in this with me, let me know. So I basically make a very loose ended offer and then I get everyone who’s interested to respond to me. And then I tell them, Hey, I’m looking for a lender to loan me money on this property.
Greg (19:32):
Uh, is it, if this is something you want to do, let’s get on the phone. So you never want to promise a certain percentage of return to a private investor, especially on email and text. So you want to just basically cast a wide net and then get some people who are interested. And then those people who are interested than hop on phone calls with them and see if it’s a fit. So social media has been a big one, also just networking with people, telling people what I’m looking for. Hey, I have a lot of properties and I wholesale half of them and the other half I close on. So I’m always looking for people who might be a little too busy to do deals on their own, to loan some money to me on some of my deals on a passive basis and get a very reasonable return for not that much time, um, involved.
Greg (20:13):
Right? So it sounds like a very beneficial pitch. Uh, and then I’m trying to think of some other ways. Those are really the main ways. And then just people I know, like I know people with money, Hey man, you got a hundred grand. You’d be open to loaning to me. Like, like, you know what I mean? But like, I think once you get to a point where you have a pretty good network and anyone can get there, if they, you know, are deliberate about it, um, you can pretty much raise money for any deal that you believe in. Right. And that’s a kind of a different topic and we’ll cover that, like how to really make sure you have a deal for the money to raise. Because the last thing you want to do is raise capital on a bad deal. But those are really two ways, just my network, social media. And, um, honestly, one more way, I would say that is probably kind of counter-intuitive is actually, I’ve had a lot of rich sellers call me and they’re like, I don’t want to sell this property at discount, but I do have some money and I’m 75 years old and I’ve added guys to my – guys and girls – to my database that are, that were seller leads that turned into like lender relationships. So that’s kind of ironic, but you never know.
Tony (21:12):
No, I like that. And I like that. And you know, one thing that you and I didn’t touch on, um, I don’t know how much you do of this, but just friends and family, right? Yeah. Yeah. That’s like, that can be a little bit touchy, you know? Cause like, if you’re getting new into the game, like you, you need to have your stuff together, right? Like you don’t want to, yeah. You don’t want to borrow a hundred grand from your parents and then all of a sudden deal goes south and you can’t pay it all back or maybe none of it back if you really mess it up. Um, so, you know, if you got a really good deal and you know, you can’t mess it up or if, you know, you messed it up, you can figure out how to pay it back. Right. Make monthly payments or something.
Greg (21:46):
Yeah. Yeah.
Greg (21:47):
Yeah. You gotta be careful with that, but you got to, um, you should partner with an experienced investor, your first deal, if you’re closing in my opinion, because that’ll mitigate a lot of risk, you know.
Tony (21:59):
Or at least have a mentor.
Greg (22:01):
Yeah. Yeah. That’s what I mean, like just get a mentor, whether it’s partnering with them or paying them, but you need to have someone who knows what they’re doing, look at your deal. Um, because that will save you a lot of time and effort and potential stress.
Tony (22:13):
Yeah, for sure. For sure. So, so another thing that I, I was just taking some notes here. Um, so how, how do you present deals to investors? So let’s talk about that. Um, so for me, I have this very automated. We do a high volume of business. I don’t even really talk to my investors anymore. Um, most of them, some of them, I communicate with a little bit, but have my team communicate mostly with my investors. And so we have just a formatted email that goes out to them. So luckily pretty much all the investors we have right now, for the most part, we’ve done hundreds of thousands or millions of dollars of transactions with them. So it’s a lot easier that way. Right. But if you’re first, even when you’re, you can use this, even when you’re first sending deals out. Do a basic template. It’s like, Hey, we’ve got another great opportunity for you to look at, let us know if you’re interested and put a little scarcity to it.
Tony (23:07):
If you’re starting out, if you’re sending it to multiple people, be like, Hey, you know, I’m going to, I’m giving you first shot at this. We bought this deal for this price. We’re going to put this amount and repairs in it. Here’s what we think is going to be worth. Um, here’s the address. Here’s when it’s closing, here are the terms, it’s just a black and white, like within 15 to 30 seconds, they can look at it. And if they’re a, an astute investor, they can make a decision based on that. Um, if they’re very picky, they may ask for pictures, they may want to drive by. They might want to do an inspection in the beginning when you’re building a relationship. You may have to do that kind of stuff. But I tell people in the beginning, like, don’t give them everything and I’m not saying you want to hide anything.
Tony (23:52):
It just, most investors just want a snapshot. If they trust you and they want to do a deal with you, they see the snapshot, they can go on Zillow, they can go on Google. They can research the area. They can drive by it if they’re in the area, but just give them that basic information. Like we literally, I don’t think there’s any investor that we have right now that asks for pictures, asked for scope of work, ask for, you know, any, you know, they, they pretty much just, they look the numbers, they trust us. Right? Yeah. And even, even in the beginning, when we did the first deals with them, I felt like I don’t think they, most of them ever did anything besides just look at that email, trust the numbers and say, let’s move forward. Um, so tell me how you present your deals to investors.
Greg (24:32):
Yeah. I get a database of interested people who I know have the money and are willing to take action. Like I try to sift out tire kickers. Uh, so that’s step number one. And then I, I just send them the information and pretty much say, Hey, um, I’m going to start with this too. If it’s a borderline deal, I use hard money or my own money. And when I say borderline, I mean, like, you know, it’s could make some pretty good money, but there’s also maybe a little bit of risk for some reason, I won’t even call a private investor. I’ll just tap to the hard money lender, and take that risk. Not because I don’t care about the hard money lender, but I’m a very risk, believe it or not. I’m a very risk adverse person when it comes to money. So I only give my private lenders like smoking hot home run deals, which I’ve been fortunate to find a good amount of.
Greg (25:18):
But, um, I basically say, Hey, listen, this thing’s a home run and this is why it’s a home run. Here are the numbers. Let me know what your thoughts are. This is exactly my game plan here. This is my scope of work. Uh, this is my project manager. If I’m using a project manager on this property and, um, this is how you will get paid back, right? And they, they can look at that and make their own decision. I have one lender who wants me to get a home inspection, which I actually don’t mind because a, it tells me more about the property and B I don’t make payments to them. I just pay it all on the back end. So I don’t care. Like I’ll pay 300 bucks they have to pay 1200 bucks a month, you know, so I just give it to them and I let them decide.
Greg (25:57):
And I have enough money on the sidelines now from investors to where, for some reason, if one investor doesn’t want to do it, for some reason, I get some feedback from them because maybe they can tell me something that I might be missing or they just say, let’s do it. All right. Let’s send over the term sheet. And we, you know, we send them the information for the note mortgage or yeah. Note and mortgage in New York, California, Steep trust. That’s pretty much what I do. And I’m very selective though with that. Like if, like I said, if it’s anything that’s sketchy, like I’ll give you an example. Um, I bought two properties in the last seven months with occupied tenant site on scene. Like, didn’t see it. And I, they were home run deals like grand slam deals.
Greg (26:38):
I still have them right now as rentals. And in my opinion, even though the price was unbelievable and it was like a no brainer because of the risk of dealing with an unscrupulous tenant. I did not want to bring an investor in that deal just because there are so many things that can go wrong with a tenant. And I’m, I’m okay with handling that. I said, I’m going to, I’m going to make the hard money lender, take the risk. So we, I used hard money to get that deal. So, um, that’s how careful I am with private money, because I want it to be a long-term relationship and the bigger deals I get into, I want to bring those investors in there with me. And I don’t want to give them some deal that I need to close in order to make 20 grand and give them a lot of risk and then have some potential issues, et cetera. So I’m just very careful and I let the deal sell. I let the deal sell them. Right. I don’t need to sell them. I need to deal to sell them because they already know that they can trust me, hopefully that’s why they’re in my database. And I know them. So I want the deal to sell them, but then they’ll be barely any resistance for the most part.
Tony (27:37):
Yeah. Yeah. For sure. For sure. So you kind of touched on this structure, right? So like how to structure the deal. Right. So like, um, there’s, you know, there’s interest rates, there’s terms, there’s, you know, there’s all kinds of different structures. So, um, so first of all, there’s interest rate. So for me, um, I could probably go lower. Uh, but right now, so I would say, what was it 10, 15 years ago? And we started raising a lot of money. We were paying 12%, zero points upfront. Very fair for both parties. Right. And so, as, as time went on, we realized that, um, you know, it’s supply and demand, right? Like if you’ve got a lot of money that people are wanting to put in place and you can’t put it all in place, so you have supply there and yeah. You know, and not to mention interest rates have dropped right, in the past 10 to 15 years, you know, they fluctuated a little bit, but they recently they’ve really dropped. So you have to look, you have to look at market rates. So right now, if we bring on any investor, it’s 9%. Um, I know guys that are they’re way less experienced than I am that are getting 5%
Greg (28:47):
Dude. That’s, that’s unbelievable.
Tony (28:49):
Which is like bank money. So you can get bank money, but they’re going to require, you know, 20% down and they’re going to require additional documentation. They’re going to require, uh, appraisals, document fees.
Greg (29:03):
I would avoid that. I would avoid, I would avoid the banks. Yeah.
Tony (29:07):
The only time I use banks on a high dollar deal. So we have like two or three, what I consider high dollar deals in Wichita. So for us, it makes sense to go through all that and pay 5% and use some of our own money to put down. But those smaller deals that are 50, 100, 120, it just doesn’t. Yeah, it doesn’t make a lot of sense. So, um, so we pay 9%, zero points to our private investors. They fund a hundred percent of the deal. Um, and they’re very happy, you know, they get, they get a monthly payment. So we kind of have two different structures.
Tony (29:37):
We have monthly payment, you can get, that’s fine, but it’s going to be nine percent. If you’re willing to take the payments on the back end, it makes it a lot easier for my team for bookkeeping, for logistics. Um, cause we’ve missed. Like my team is great, but you know, we’ve missed where we’ve overpaid somebody because of the monthly payments. So to not have to make payments till the end makes it easy. There’s a lot of different things that I’m willing to pay a little bit more. But typically what, you know, I do 9% payments and if they say, Hey, can you do better on the interest rate? Well, sure I can, but we’re not going to make payments to you.
Greg (30:08):
My price, your terms. Classic real estate.
Tony (30:09):
But you know what, but you know what I like, what I like with giving them payments, especially in the beginning is they get that first check and they feel like it’s real. They get that second check. And it’s like, okay, this guy is really delivering. Like I’ve gotten two checks. This is easy. Usually that second check, if they’ve got more money, that’s when they call you, Hey, do you have another deal? Let’s get into another deal.
Greg (30:35):
Your feeding there. You’re feeding their family, bro. I mean, it’s, it’s, it’s unbelievable. They’re getting a check in the mail passively, like legitimately passively, you know?
Tony (30:43):
Because when you, you probably get this too, when you talk to investors passively and they’re like, I can get 10% on my money secured by real estate. Never use the word guaranteed, but fixed rate. So whether you make money on the deal or not, you’re paying me 10% interest. Yeah. They’re like, what’s the catch. That’s too good to be true. Right. And so it’s, it’s great for us because we’re not having to put much money into the deal other than holding costs and all that kind of stuff. Yeah. And then for them, they get a monthly check. So, so that’s why after the second check, they’re like, okay, maybe this isn’t too good to be true. Maybe this guy is legit. Yeah. And that’s, and that’s why I had a million bucks from that guy, you know, within 12 months we got payments to him on time, did our thing. And that’s the other thing, take care of your investors because they’re not only going to put more money with you, they’re going to tell other people.
Greg (31:36):
They’re going to refer. It’s an easy referral business I’ve learned.
Tony (31:40):
And so, um, so yeah, that one deal then, Hey, actually, if I remember right, he said, give me two more deals. We funded two more deals. Then the first deal cashed out, he got his money back then, Hey, give me, I mean, it’s –
Greg (31:50):
The train rolls man.
Tony (31:53):
He had a couple of million bucks sitting in the bank. So for him to put a million bucks in the real estate, wasn’t a big deal or any 10% when he was earning 1% less on his 2 million bucks.
Greg (32:04):
That’s amazing. And here’s another thing I do with private lenders that you mentioned that sort of mentioned this, an objection that I’ll get is – I generally do 12 month loans. So they’re like, well, what if you only have the money for two or three months? So a way that I have handled that objection is I say, Hey, whether I have the money for 12 months or whether I have the money for one month, I guarantee at least six months of interest, just because it doesn’t really financially matter. Cause if you know what you’re doing and you’re buying properties the right way, the interest cost shouldn’t be that bad. Especially if you’re, you know, if you’re good at raising money. So I guarantee six months of interest. I’m like, I don’t care. I’m not making the payments. I don’t write the check. It’s all coming off the backend.
Greg (32:49):
So I do that. And that people love that. They’re like, oh, so you’re telling me if you only have this property for three months, I’m still getting six months of interest. So I’m like, yeah. Why not? Like it works for them, works for me. Like maybe I’m leaving money on the table, but I don’t really care because I can get into these deals with not a lot of money. Like I can basically pay the closing costs or whatever, the marketing costs. And, uh, it allows the investor to be more inclined to that offer. Some people might not care about that. So you have to really find out what, what the investor is looking for. Like in terms of who, where’s the money coming from, is it in their bank, is it in their IRA. I’ve done both. Um, is it, are they brokering it? And they have like a rich uncle and they’re just kinda like finagling it.
Greg (33:27):
You got to know where the money’s coming from and what their objectives are and what that money would be doing if it wasn’t with you. So I want people to write that down. What would that money be doing if it wasn’t with you? Right? And then you can find that out and then you can see how you can basically put their money in a higher and better use. It’s like, if you’re buying a property, you always want to find out what’s the highest and best use. So for an investor, what’s the highest and best use of their money. Work can that money be if it’s not with you? And that really helps you, uh, you know, just be more confident, be much more confident when you’re talking with people and, and having these types of conversation,
Tony (34:00):
That’s actually a really good point asking them. It’s kind of like when you’re negotiating with the seller, it’s like, rather than you giving the price first, have them give the price first, dude, what are you putting your money into right now? You know, I’m putting it in the savings account, it’s in the savings. What is it? Earning half a percent. Okay, great. Then at that point, that’s probably why most people, or not most people, why some people can get 5% on their money, you know, get, you know, pay their investors 5% is because they’ve asked them what they’re getting. And if they can get five to 10 times the amount investing with you, even if it’s 5%, then you might be able to get that 5%, you know? Um, so yeah, just asking those questions and finding out what they want. And you know, some people may want payments.
Tony (34:41):
Some people may not. I’ve never, I think maybe once I’ve been asked, I actually I’ve been asked many times that same question. What happens if it cashes out in three months? My answer is always, and you are leaving money on the table, but that’s okay.
Greg (34:56):
I make up for it in my wholesale deals.
Tony (34:57):
I know, I’m just giving you crap. But here’s the thing. Like I tell them, if we cash you out three months, we’re going to do our best to flip that money into another property as quickly as possible. Typically we don’t have their money sitting on the sideline for more than like two to four weeks.
Greg (35:14):
Yeah. That’s a great answer to that objection by the way.
Tony (35:15):
So that 10% that they’re getting maybe a little bit less per year or actually could be more cause they could compound it. Right. Cause they can put that whole thing back in, but it may be just a little bit less because you know, they may have like a month, month and a half that it’s sitting throughout the whole year. But you know, when you’re giving them good returns, it’s not that big of a deal.
Greg (35:36):
Yeah. That’s a smart thing. It’s, it’s all, it all depends on how many, how many houses you’re turning. You know, if you always have more deals coming through, like if you’re turning four or five, if you’re closing on four to five properties a month, you’re never going to have an issue with putting that money back into another project. You can cross collaterized. There’s so many things you can do with private money. But I have found, honestly, Tony, it has been a lot easier than I thought to raise money. Like here’s another, like I want to reframe something real quick. This is totally relevant, by the way, to raising money. A lot of people are like, oh, I don’t know rich people. I don’t know how to get the money. If you’ve ever wholesale the house in your life. You’re really good at raising private money because guess what?
Greg (36:15):
The freaking buyer is bringing the damn money. So people are, if you’re locking up a house for 300 grand and you don’t have 300 grand and you go find a buyer for 315, 320, well guess what? You just raised private money or hard money or raise the money without even knowing what you’re doing. Cause someone’s paying for that property. So I think a lot of new wholesalers needs to squash this BS belief they have like, oh, I’m just going to wholesale nine properties before. Like, no, like just, just start buying houses from day one, get a mentor, whether it’s local, JV partner or coach or something. But it’s really not that big of a deal. In my opinion, getting the deals by far the hardest part of real estate, getting a deal, getting a seller to sell a house in this hot market at a discount is a lot harder than raising the money, or selling the property for, you know, just to piggyback off that.
Tony (37:01):
All right, you guys that are on zoom right now, please ask questions. I know we’re just kind of rambling on and hopefully you’re getting some good info and that’s why there’s no questions coming in right now. But please ask them, let them know, let us know if there’s anything we, uh, we need to cover then the last, you know, 15 to 20 minutes. But, um, but I like this conversation cause I, I mean, even though I’ve raised a lot of money and done a lot of deals, like the stuff you’re saying, I’ve gotten, got a couple of nuggets from, so that’s good. And hopefully you’ve done the same, uh, same. But, uh, but yeah, I mean, what it comes down to is talking about private money to as many people as you can. Um, like Greg said, go find deals like don’t, if you don’t have any deals right now, still talk to people about private money. Like, but, but it frustrates me. I mean, I think you just mentioned it that like people will be like, I can’t flip houses. I can’t invest in real estate. I don’t have the money. And it’s like, man, you go find a smoking deal and you bring it to somebody –
Greg (37:55):
Bring it to me, I’ll fund it.
Tony (37:56):
Yes. They’re going to fund it. They’re going to partner with you. They’re going to give you the money at a, at a decent interest rate. Like there’s a way to sell that deal. Right.
Greg (38:05):
It’s gotta be a good deal. The deal takes care of itself, man.
Tony (38:09):
Totally, totally. And if you’ve got a good job and you’ve got a little bit of cash, you can go to a bank and get a finance. You can go to hard money lender and get a finance. Hard money lender – just so you guys know is, is so much it’s, it’s funny they call it hard money. They should call it an easy money lender. Cause it’s actually pretty easy to get. It’s just, they’re going to charge you higher rates. Right. And they’re going to do it based on the deal itself. They kind of care what your credit is. They may do a background.
Greg (38:32):
Yeah. They do care. They care about your credit. That is actually – because it makes sense. Cause you’re making payments to them monthly. I understand why they would look for that.
Tony (38:39):
Yeah. But they’re not going to ask for your tax returns and stuff that you just don’t want, you know, dive into and them to dissect. Right?
Greg (38:46):
Yeah. That’s not like in the traditional personal bank loan, that’s a disaster.
Tony (38:51):
Yup. And then, and then take care of your investors and like when you’re presenting the deal. So I gave you just like a basic baseline of how to present your deal. Even though it’s like simple, it still needs to be like, you still need to be able to understand it. So I, as I mentioned, I fund deals for other real estate investors, mostly get funding. So I fund down payments. And so when people send us deals like the way it’s not necessarily the information they present, it’s almost the way they present it. Right. It’s like, isn’t it a way that I can understand it. If you’re throwing a bunch of crap against the wall and hope it’s going to stick and you throw it, and like that distrust, distrust right away in my head is going to happen. If I’m confused, then I’m like, okay, if this guy is confusing me in the beginning, is he going to confuse me later down the road? When he emails me and says he can’t make a payment and why, uh, you know, why a contract? I mean, you know what I’m saying? Like, it’s just so much easier to build that relationship upfront by, by presenting the information in a good manner where they understand it. Right.
Greg (39:56):
Totally.
Tony (39:56):
And then, you know, take care of your investors, you know, do what you say you’re going to do. There’s man, I’ve got, I got one deal right now that’s going bad. And it’s because there’s this investor that borrowed way too much money than they should have. And what happened was, and I don’t know the whole backstory, but you know, started borrowing money on deals, started getting more money than she was supposed to pocketing the money. And then she realized, wow, I can do this with other investors. And then she’d find more money from investors borrow on deals won’t secure them on properties when she said she was going to, like, it is just a mess and I’m involved in it. I think I’ll get some of my money back. I may get all of it. I may get none of it. I don’t know at this point.
Tony (40:39):
Uh, but you know, the gist of it is like, just take care of your people, man. Like she’s in so much trouble right now. And so like, yeah, she might, she may have lived it up for a couple of years or three years or however long she’s been, you know, getting money from investors and using it on other things. But still, don’t do that, man.
Greg (40:57):
Don’t do that crap, do the right thing.
Tony (41:00):
Yeah. You’re going to get in trouble. People are going to find out like, just be on the up and up. And I actually had one investor that, um, I accidentally wired too much money to closing. And instead of him telling me the title company gave it back to him and I’m like, and the distrust right there was like, man, you just got six grand at closing. We never talked about that. You knew, you knew, you weren’t supposed to get that money. And you know, so just right off the bat was like, man, come on, man. That’s I don’t, I don’t know that I would do another loan with him again, just because of that. And some of the other things that have happened with, with that transaction. So, um, just do your part, man. Just be a good, be a good person. And, and uh, you know, do what you say, you’re going to do.
Greg (41:42):
Do what you say you’re going to do it. And here’s, what’s another thing that people don’t like, the more the lender, whether it’s hard money or private money and by the way, hard money is so cheap right now. It’s just ridiculous. So it’s, if you have a deal, like my goodness, you can get that funded quickly. But if, if the lender, if the lender sees from you like subconsciously, you can’t really like explain this, but if they can tell that you’re not like a total doofus and like you have, you have a solid game plan that you’ve spent more than 10 minutes on, there’s really not going to be a lot of resistance from making this, this deal. Because like I said earlier, the deal is going to sell itself. If someone knocked on my door right now and said, Greg, I have a house here it’s worth 300.
Greg (42:24):
Here are the comps, I’m buying it for 150, it needs 50 grand worth of work. Like I would consider funding it. Like, it’s not because like, I’m the king of funding, but because like it’s a good opportunity. There’s a good, you know, there’s an opportunity to make money and solve a problem right there. But if someone brings you a deal and the numbers don’t make sense, you always need to tell people why it doesn’t make sense or the investor will tell you why they might not want to fund the deal. So anytime you get an objection, if you do get objections from investors, you got to basically say, well, what is your like, I totally get, it makes sense. Like, don’t like sound harsh, but like totally understand. Makes total sense. I just got to ask you to real quick, you know, what is the number one thing you’re uncomfortable with when it comes to this property? And then maybe I could see how I might be able to handle that in the future. And now they’re going to tell you why they don’t want to loan you the money and you can take that back as feedback to either fix it or don’t do it on the next deal.
Tony (43:15):
Yep. So we’ve got a question that came in, uh, Erwin says on the topic of finding deals, um, some of the more Orthodox forms of marketing you guys have, what are some of the unorthodox forms of marketing you guys have tried? I know you’re the TV guy, Tony, and, but in a hot market like San Diego, I don’t believe it’s something I can afford right now. Well, good thing you can’t because I already have San Diego locked up for TV. So I have no spots in, in San Diego for TV. Cause I’m doing TV in San Diego now. Um, but um, oh, I’ll just touch on some of the marketing methods that um, well gosh, this could take awhile. I’ll just tell you some unorthodox forms of marketing that people in my master mind group have talked about. Um, this is some high level stuff.
Tony (44:00):
So, um, so, Greg, you can touch on this too, if there’s anything that kind of outside the box that you do, I’ve heard people doing. So, um, so let’s talk about the Orthodox methods, cold calling, texting direct mail, all of those work, but they’re super competitive. So I think some of the things that are the least competitive would be, um, finding bird dogs to find properties for you. So that is a cheap form of marketing. So bird-dog is basically someone that goes and finds properties, brings them to you, you pay him a fee. I’m actually doing something for my mastermind group here in a couple of weeks. Um, someone’s presenting on bird-dogging and he’s got a really good system on how to find bird-dogs, train them and that kind of thing. Um, so I may share that, um, share that guy or that system publicly.
Tony (44:50):
Once I look into it a little bit more, but finding bird dogs, and then the only other thing I think that I can think of off the top of my head would be driving for dollars. And that’s something that takes a lot of time. So driving for dollars is basically driving around neighborhoods you’d want to buy properties, taking a list of addresses of properties that have overgrown trees, holes in the roof, um, foundation issues, basically properties you feel like you could find at a discount, putting them on a list, either knocking on the door and giving them a card or sending them direct mail. And so even though direct calling is competitve or skip tracing and calling them, so there’s multiple. Yeah. There’s multiple ways to hit those, hit those people. Uh, but it takes a lot of time and energy if you do it, and then you can find, you know, bird dog type people to do that for you where they will drive around. They will find, you know, the properties for you and you just pay them based on, um, the deals that they bring to you. So those are the only two I can think of off the top of my head. What do you have, Greg? You have anything outside the box?
Greg (45:56):
Oh, I want to share a story on, I want to share two stories real quick on those, those bird dog deals. So I did a deal. This is last year. I closed this year early. It was my buddy’s neighbor’s house. He goes, dude, this thing got inherited. Like you should call the guy. And I’m like, all right, call the guy, Hey, I’m Greg. I want to buy the house. And it was like a warm cold call. Cause I can kind of like knew what was going on and bought the house, paid with my buddy, like seven grand or something, like pay them a lot of money. There’s a big wholesale fee or finder’s fee. So he was happy as a clam and we rehabbed the house and it was an absolute home run. And that was from like, there was no competition there really. I mean, it was just, the guy wanted to sell to me.
Greg (46:33):
There was no BS and it was a bird dog referral. And then another property, same thing last year, my buddy couldn’t find the owner of this house. He said, Hey Greg, this house is vacant and we should look into it. We wholesale it for $43,000. And the whole deal took like 40 days from start to finish, or 50 days. And that was just someone driving around. And I think his dad was, his dad who was one of my lenders, actually was walking around the neighborhoods like, oh, that house is a disaster. Hey Mike. And then told him about the house. And then he told me about the house and then we got under contract. So I feel like that list alone is golden because you’re going to know about properties that other investors might not know about. And we’d go on prop stream and you, uh, pull lists. Uh, there’s a bunch of other people pulling that list most likely in your market. So you still can get deals from that, but you’re going to be, um, not standing out as much as you would, if you’re mailing unique houses that you have, you or someone on your team has seen that is you know, that are dilapidated.
Tony (47:26):
Yeah. And so TV is working really well cause there’s very many people doing it because the barrier of entry is very high. You have to, and there’s so many different moving parts to it. Um, so if you can find something that other people aren’t doing, that’s when you can make really good money. So I think driving for dollars is a good one. Cause I mean, even if you have a dozen people driving for dollars, which I don’t, I don’t know if that’s a high number, a low number in any area. I mean, for them to be able to hit the whole city’s going to be pretty, you know, it’s going to be pretty slim to none that they hit the whole city. So, um, driving for dollars for me is one, and I’m sure it could potentially think of some others, but uh, that’s the main one right there. Main couple.
Greg (48:05):
Yeah, for sure. Another one just unorthodox is it’s JV with other investors and it’s it’s you have to bring a lot of value if you’re going to do that though, like you have to bring a lot of value. So if you’re new, I would say, I want to be more specific because if you’re more experienced, it makes sense to do JV deals because new investors bring you deals, you have a track record, but if you’re brand spanking new, another thing you can do is – this is like, this worked really well like three years ago and it’s doesn’t work as well today, but it still will produce, every list that you buy from like these providers, you can run it through a system that find vacant, vacant properties on that list. And instead of cold calling everyone and their brother and getting most people hang the phone up, you can only call the vacant properties on whatever initials you pulled.
Greg (48:54):
So it kind of gives you a little bit of an advantage because a lot of times those properties are harder to get in touch with because they’re vacant. Um, usually it’s an inherited situation. So if you’re a flat broke, you can pull a list for really cheap on prop stream. And then you can go ahead and you can, um, you can filter that list for vacant properties and then call those vacant properties. And I’ve found that so many times and we’ve done great deals from that. So that’s another list that, um, no one really, really talks about that much. And one more thing I would say in terms of unique marketing and my buddy, my buddy, just two of my buddies actually were competing on the same deal. Um, bandit signs and billboards. So my one buddy, Joe, has a big billboard with his face on it that says, get the cash before the crash.
Greg (49:39):
And he’s got like a suit on. He looks, it’s ridiculous. It’s ridiculous in a good way, Joe. If you’re listening, I love your sign. And then my other buddy Devin put his bandit sign up right next to that sign. So they’ve been competing on the same leads, but those don’t cost as much money as you would think. I mean, his bandit, his billboard is a lot cheaper than, than you would think. And bandit signs are like two bucks a sign. I used to pay people to put them out for me. So, um, you’re going to get good calls from that. If you put enough out.
Tony (50:06):
Yeah. Bandit signs are good.
Greg (50:09):
They are just a little hairy.
Tony (50:09):
Yeah. We’ve been very inconsistent with that over the years, when we are consistent, then we can, you know, but the thing with me is just finding people to do it. Cause my team doesn’t have time to do it. Um, but finding someone that has the time, energy, and you can trust to put the signs out as opposed to, you know, throwing them away and saying they put them out so well, good stuff, man. What else do you want to add? What else can we provide um, money raising wise that they could take from, uh, from this call?
Greg (50:46):
Understand that raising money isn’t very hard if you have a deal. I think the number one thing is not very hard to raise money. If you were to like, if you’re listening to this show and I’m going to hold myself and maybe Tony, if he wants to do this, if you have a deal that actually makes financial sense, it’s so much easier to raise the money. If you could go hit up all the people who you might know, and it’s a deal and I’d have severe fight if it’s a deal or not, depending on where you are and you still can’t find the money, I am going to be very open to potentially giving you the money for the deal. Not because I got 20 million bucks in the bank yet, but because I know that I can find a way to get you to money, whether it’s my money, whether it’s, you know, someone else’s money, but don’t ever think you can’t buy a property, that’s a good deal because you don’t have the money because you will be able to find that money right away, a lot faster than you probably think.
Greg (51:32):
And you can go from there.
Tony (51:34):
Yeah. Um, if you guys have a deal to look at, um, I’ve got a company – gapfundingsolutions.com. Uh, we do mostly second lien positions for gap funding. But we also do some first under a hundred thousand. Um, so if you want us to look at those, um, we can. Again, we’re not the cheapest, but you know, we’re very easy to work with and it comes with some direct mentor-ship and coaching because a lot of people that I, – um, are you trying to talk Greg, cause you’re muted.
Greg (52:02):
We’re good.
Tony (52:03):
Okay. Talking to someone else. Anyway, so yeah, so, I talk people through deals all the time that are newer investors. So we can look at the deal, analyze it for you, tell you whether it’s a good deal or not. And then, uh, if you, if we fund the deal for you, then I’ll, I’ll be a little bit more involved with you on the transaction to help you not make, you know, as many mistakes as some newer investors would, since we’ve done close to a thousand of these deals.
Greg (52:29):
You learn a lot by doing a thousand houses, I could imagine Tony. I’m not at that milestone yet. I can tell you that.
Tony (52:35):
Well, I think you’re probably outpacing me at 25 or 26, whatever you are right now. So once you’re my age, I’m sure you’ll be there.
Greg (52:44):
We’ll see.
Tony (52:45):
Sorry. Here’s another question that came in and came in and on another screen, which is weird when you raise money from an investor, you are connecting to a promissory note and the property, or is there a fund? So yeah, it’s, I’m getting ready to raise money for a fund, but yeah, it pretty much every deal that, uh, that I have done so far and all of the deals that I am funding for other people, is a promissory note and a mortgage in mortgage states. And then in deed of trust states like Texas or California, and some of the other states like that, then it’s a promissory note and a deed of trust.
Greg (53:27):
Deed of trust. That is just basically just for people who don’t understand that I was an attorney before I was a real estate investor. I’m just kidding. Um, but basically it, it just means, cause a lot of people probably are like what does that even mean? It just means the deed of trust just means that if you have to foreclose, if you’re the lender, you don’t have to go in front of a judge. You could basically just do it a lot quicker. Believe it, I’m surprised that’s the case in California, but it is. A mortgage is basically it’s, it’s the same thing. It’s a security instrument that collateralizes, which means that it attaches the loan to the property if someone weren’t to pay, but a mortgage is done in a judicial state, which means that in order to foreclose on an asset or a real estate asset, you have to go in front of a judge and basically getting a full blown lawsuit, which makes it a lot longer and more expensive.
Greg (54:12):
Um, so it actually, this is another thing that’s kind of a ramble, but it’s probably easier to raise capital if you’re in a deed of trust state, if you had to get into the real weeds because the deed of trust is a lot easier than a mortgage because you get foreclosing in New York and New Jersey is a disaster. Um, it’s like, that’s why there’s not a lot of seller financing around here because it’s just so hard to foreclose. It’s just like, doesn’t make a lot of sense, but don’t let that scare you just a little nuance there. If you have a good deal, you can still get around that. There’s ways to do it. And um, yeah.
Tony (54:43):
All right, totally well, we’re out of time, hopefully you guys got some good nuggets there. Don’t be afraid to tie up some deals, tie up some deals. You can find the money and just give yourself plenty of time. If you give yourself 30 to 40 days to find the money and put it out to enough places, friends, family, uh, people that, you know, um, you know, like Greg said, you can post some general stuff on Facebook. Um, just try not to talk about terms and things like that. And you guys can do some deals. So, you know, rather than, you know, wholesaling, which can be a good source of quick income, um, you can make some bigger money, raising money and wholetailing or doing fix and flips, or even rentals. You know, because rentals are, are something that long-term you can have and pay off and be worth hundreds of thousands of dollars down the road. And that’s why I like rentals as well. So
Greg (55:33):
Rentals make a lot of sense. Um, especially if you can burn the properties and it’s the same thing, raise property there and refinance that with a bank. So, I mean the general point we’re making tonight is, is don’t be afraid to raise money if you have a good deal. We give you guys, here guys and girls, all the strategies you would really need. If you just take what we’re learning here and apply it, I guarantee you it’ll, it’ll make you more productive. And also if you’re getting value from this, we come on this once a week or another once a week, once a month, if you can share this with a friend, if you can just tell your friends and family that if they want some great real estate advice for free, no strings attached, head over to tonyandgreg.com. Share the link around. It’s how we grow this thing and make it bigger every month. It’s because word of mouth is more powerful in my opinion than paid advertising for like this type of stuff, because people know that it’s coming and it’s coming from someone they can trust. So Tony, anything else to add before we wrap it up today?
Tony (56:21):
No, just consider that your price of admission. Just share with as many people and yeah, just jump on in next time. Um, I don’t know what our next topic is going to be. Do you have any idea what our next topic is going to be next month?
Greg (56:34):
We should leave them with a teaser?
Greg (56:40):
Oh, I think we should do how to estimate rehab costs. I can talk about that for a long time. I think that’s really – that screws up a lot of new investors. I think we should have a construction or just like how to not get smoked in construction as badly as you probably will. Uh, cause there’s so many pitfalls with construction. I think that would be valuable. Um, I don’t know what your thoughts are on that, but I have learned a lot over the years and I’m sure you have as well because that can get real crazy.
Tony (57:09):
You know what I think? Yeah, no, I don’t think that’s a bad idea. I think one good topic could be building a team because you know, construction. We can talk about that. Maybe we can do it. Let’s do a double, let’s do construction. You can talk about construction in the beginning. I’ll talk about team building because you know, when you get into real estate, people think, well, I don’t have a team or I can’t afford a team or, you know, whatever the thing is, like there’s ways to build a team around you without having to spend a lot of money. So I’d love to talk about that. I think that’d be a good, a good thing. Cause even, I had an EOS call earlier today. Won’t get into what that is. If you guys know what EOS is.
Tony (57:49):
And there’s so many experienced investors on the call and they were pretty much one man shows and two things about that. One is some of them didn’t have big teams, you know, uh, inside or outside of their business, but some of them are doing pretty large volumes without having employees. And it’s because they have a good team outside of their team. And it’s less expensive. It’s less risk. It’s less overhead. I mean, there’s so many benefits to it. Anyway, love to get into it.
Greg (58:22):
Dude. You just gotta read my mind. I mean, that’s basically what I do. I mean, I have an assistant and then I have a great attorney, a great title company, great lenders, great project manager if I need that. Um, so I mean, we can talk about that as well. How to build a team without building a team.
Tony (58:34):
Well, then you can do the next call without me. Cause you can cover both of those man.
Greg (58:38):
No, we need you. Listen, man, it’s always a pleasure. I hope everyone got some value today. Please share this with friends and family. And we will see everyone in the next one, tonyandgreg.com signing out.
Tony (58:47):
Alright, see you guys. Thanks guys.
