How Two Young Investors Quietly Made $1,000,000 in Distressed Real Estate

So in the beginning we were like 25 to 50 cents on the dollar on the deals we were doing. So it was worth it to buy

were doing. So it was worth it to buy you know buying good deals. Yeah. So

kind of why we like to focus on the way we looked at it was like okay 25 cents to 50 cents on a dollar and it's just land. So there's no construction to eat

land. So there's no construction to eat into that margin. Let's say we get it at 50 cents on a dollar and we sell it for 80 90 cents to get rid of it gone. Like

that's pretty much what our game was. So

last year we had some projects where owner reached out to us. He had a bunch of problems with his property where he just couldn't get it figured out. He

tried to sell. He tried to go under contract. He tried agents. They just

contract. He tried agents. They just

weren't helping him. They would just kind of keep [music] putting his business away. They just didn't want to

business away. They just didn't want to deal with the property. So, he reached out to us. He was the seller that got the lease for his property, but was the most happy because of how much of a burden it was for him. We ended up going

and selling them. And that ended up being a pretty close to pretty huge profit, right? Multiple multiple

profit, right? Multiple multiple multiple big speakers. I had to say three times.

140 distressed property deals last year doing over a million bucks. All with a small outsourced team of inexperienced helpers. Allan and AJ didn't have trust

helpers. Allan and AJ didn't have trust funds, big investors, or head start.

Just grit and some strategy that no one else probably really saw. So maybe

you're just like Allan, AJ, and only 12 months away from a million bucks. Let's

find out how this works. Welcome Allan

and AJ.

>> Thank you for having us.

>> Thank you. Thank you.

>> Y'all are so uh so softspoken.

If someone were to see you on the street and talk to you, they would have no [snorts] idea like what you're up to.

[laughter] And I love that because we're a lot like that. Now, you're driving through a

that. Now, you're driving through a parking lot in the back and you could see what we're up to because everybody's finally making like, >> you know, real money and nice cars and stuff, but a lot of our partners are like, "Y'all, we're just here to do

business. We're not trying to,

business. We're not trying to, >> you know, no Gucci shirts, [ __ ] like that." I I admire that about y'all.

that." I I admire that about y'all.

Thanks for coming today.

>> Thank you for having us.

>> So, you guys that run your business together, um why don't y'all tell me just give me a fiveminute background of like who y'all each are, how you got here. Tell our viewers that. [snorts]

here. Tell our viewers that. [snorts]

>> I'm going to start. Okay. I guess I'll break the ice.

>> Yeah.

>> Okay. So, [clears throat] my name is Abamel Himenez. I go by AJ. Most know me

Abamel Himenez. I go by AJ. Most know me by AJ. And um a little bit of how I got

by AJ. And um a little bit of how I got into real estate. It was actually by accident. So uh I used to work for a

accident. So uh I used to work for a Comcast company doing third party work for them and one of my colleagues there was asking >> what were you doing installing cable?

>> Yeah I was doing a lot of PM work installing uh like coax >> working with Fiverr and stuff like that.

>> Okay.

>> So it was pretty interesting. I actually

enjoyed that job a lot. It's probably

because of the pay too. I was getting paid like 50 bucks an hour. So

>> Oh yeah. That's good.

>> You know back then that was really good money for me.

>> Still good money but you know you've cracked your code a little since then.

[laughter] >> Exactly. [clears throat] Yeah. And so I

>> Exactly. [clears throat] Yeah. And so I kind of like just slipped in there. Uh

he told me, "Hey, there's an opportunity. I'm going to this uh job

opportunity. I'm going to this uh job interview. They're wholesaling houses."

interview. They're wholesaling houses."

>> Who told you this?

>> This is one of my friends I used to work with in the Comcast.

>> And um >> And where? What city? Houston.

>> This is in Houston. Yep. In Houston. And

um he told me about it. I was like, "Man, you know what? I thought about getting into real estate. Never knew how or what I was going to do, but I was like, I'll take a shot. Let's go go with

him." And he gets a job. And then I get

him." And he gets a job. And then I get interviewed and the >> Was this like a large, small or medium wholesaler or >> Well, from what it appear and what they painted, it was like a medium size, but

it was not at all once I started working with them, you know, >> it was more like, you know, I'm going to sell you the dream and you're going to work here and >> you know, make it look pretty. But it

wasn't nothing crazy. They were probably doing >> three deals a month for houses, which was not crazy back then, you know, for some of >> it. It was hard to pay for an entire

>> it. It was hard to pay for an entire team on that.

>> Yep. Yep. Yep. So, uh, long story short on that, you know, went to the first interview. They said, uh, I think we're

interview. They said, uh, I think we're pretty much, uh, have one more spot open and if you're ready to go, um, we can take you in. And so I was like, man, I'm

getting put in the corner right now. And

so I was at the time doing Comcast on the weekends, helping my father with remodeling work because that's what he >> bucks an hour is about 100 grand a year working full-time.

leaving that you really had to believe you were going to make a lot more money at this new deal.

>> Oh yeah. Well, from the amount of the things that the guys were talking about and all these things, I was like, man, I'm going to make great money.

>> Mhm.

>> Well, of course, he was selling me a dream, you know.

>> Told me they were doing like >> You regret that decision outside of all the other things you did?

>> No, not at all. Not one bit.

>> It was a perfect part of your path, but in the moment, you might have been like, "What did I do?"

>> Yeah. No, no, absolutely. That's what it what it felt like in the beginning. And

uh so I got hired on. I quit Comcast. I

quit working with my dad and I told him what was going on and just took it full.

>> Dad supportive of that or not?

>> He was. He was. Yeah.

>> Okay, good.

>> Because uh he was he had like a side job he was doing, you know, remodeling and got to a point I was helping him a little bit more and then that happened.

But um the side of that got into it and uh I started in acquisitions [snorts] for homes and then gradually moved from that company to moved on to another

company cuz that one went under and started with another company they also went under. Started with another company

went under. Started with another company also went under and then I started a business also with some other folks that went under and then like just just along the lines. What stopped you from going

the lines. What stopped you from going back to the old job? Cuz you knew that was safe in six figures.

>> You know, it's funny cuz my parents and family would say, "Man, what are you doing?" You know, you're doing good over

doing?" You know, you're doing good over here. Like,

here. Like, >> of course I was. But guess something inside of me just kept telling me just keep going. Just keep going.

keep going. Just keep going.

>> Even though these weren't working, you probably seen it work with others. And

it sounds like your vision was a little bit bigger than Comcast.

>> Oh, yeah. For sure. For sure. And I I'll talk about a little bit later on that because uh my first book I read changed my life. It was Napoleon Hill, Think and

my life. It was Napoleon Hill, Think and Grow Rich. And that's the book that kind

Grow Rich. And that's the book that kind of like broke me out of the system of, you know, working a 9 to5 and just working for somebody's retirement instead of my own.

>> And so that's kind of what broke my idea of I want more. You know, there's more than just this. And so that's kind of what broke broke that barrier for me.

But but yeah, I kept going. And then,

you know, along the line, God just aligned me with Allan. We met at a wholesaling event that they had when they had a big, you know, wholesaling

companies together or whatever. And we

met, kick it off pretty good, and I think like about a year later or so, right?

>> Yeah. About a year later.

>> So, y'all knew each other for about a year before you said, "Let's try this together."

together." >> Yeah. Mhm.

>> Yeah. Mhm.

>> Did you pitch him to work together or did you pitch him or this happened?

>> It just kind of naturally happened.

Yeah.

>> So, y'all got along a little bit.

>> Yeah. So like you know they were a little bit ahead of me in the sense of like going out talking to sellers and things like that >> in terms of experience.

>> Yeah. And then u cuz he was already working for companies and things like that. So he got some good ropes at

that. So he got some good ropes at >> and you were working somewhere else.

>> Yeah. I was I was on a completely different path. [laughter]

different path. [laughter] >> Oh that's right. You working you helping with the mattress guy?

>> Yeah. Mattress mag. I worked for him. Um

but you know once we kind of like I would go with them and you know kind of go on appointments. I kind of see how it was and we kind of hung out a couple times, you know, workrelated stuff and just like, hey, we should just try working together,

>> kind of feeling it out.

>> Yeah. Exactly. Yeah.

>> So then how did you get to that point from like where to here?

>> So, well, I was born in Houston. Um, you

know, kind of a little bit like we talked about or I've talked about in the past where like um you know, grow up kind of like middle class family, right?

Or kind of ghetto rich to be honest.

>> Oh, that's right. But your pops was in a business that wasn't above board. Now I

remember.

>> Yeah. Exactly. Yeah. So he went to federal prison. He got sentenced for

federal prison. He got sentenced for like 10 years. And

>> what age were you in this?

>> I was 8 years old.

>> Oh god. When a kid needs his dad the most.

>> Yeah. So

>> um at that point like we went from living pretty ghetto fabulous to like you know struggling to keep up with things. Um so it was like my mom and it

things. Um so it was like my mom and it was about six of us in the house and she was probably making like $30,000 a year.

So it's >> you know we end up um moving around a little bit. we lose that house. And um

little bit. we lose that house. And um

but around 15 years old, he like he gets back out, he gets back to work and I go volunteer one day.

>> What kind of work was he doing?

>> He was actually in sales at uh working for Mattress Mac as well.

>> Oh, that's how you got connected there.

Okay.

>> So, one day I go and volunteer and like this is after the Hurricane Harvey that happened in Houston in 2017. Um at that point, >> hold on, let me back up for a minute.

Like you you grow up to 8 years old, dad's in the house, you look up to dad, you know, you got a little bit more than some of the guys around y'all. So

you're, you know, that's a good relationship to have with your father and your disposition. And then dad goes to prison. But so you're, I mean, you're

to prison. But so you're, I mean, you're hitting like the important age of a boy's life when he's kind of becoming a man. Did that change your relationship

man. Did that change your relationship with him or what you thought the definition of like who you should be as a man is?

>> In that time, >> you're going to figure it out. Like mom

can't teach you that stuff. Yeah,

>> I love moms, but that doesn't work.

>> Yeah. So, like um I mean him being gone, there was times like we didn't talk for some time. Like maybe the longest I

some time. Like maybe the longest I probably >> Did you resent him a little bit?

>> No, I kind of it almost like forgot how it was to have a father almost like that's kind of how it really was, right?

And um but at the same time, like those times were really rich with family. Like

we had nothing but we had each other and that was like everything in the world, right? So,

right? So, um, yeah. I mean, like, growing up, I

um, yeah. I mean, like, growing up, I was really close to him. So, like, you know, we were always in the streets.

Yeah. So, we were like always in the streets together. After I went to school

streets together. After I went to school maybe like [snorts] a year late cuz I would go out and hang out with him in the streets and like they they always used to tell me like I was his little bodyguard, right? So, like um yeah,

bodyguard, right? So, like um yeah, after that happened, it was like a complete change. And like, you know, a

complete change. And like, you know, a lot, you know, like a kid, imagine a kid, you know, you get a lot of your confidence, I feel like, from your father. And a lot of that kind of went

father. And a lot of that kind of went away, you know, during those times. But,

um, like fast forwarding, you know, around 15 years old, um, I go volunteer at for at Gather Furniture in Houston.

Uh, and I meet Mattress Mac. I say,

"Hey, I'm here to volunteer. They're

having this uh relief for Hurricane Harvey." And I'm like there all day and

Harvey." And I'm like there all day and um, you know, working non-stop. And I'm

like, "All right, Mac, thanks for having me. I'm about to leave." And at the end

me. I'm about to leave." And at the end of the day, he's like, "Stay here and work till 10:00." And I'm like, "All right, I guess I'll do that." So, at the end of the night at 10:00, he's like, "Hey," like he offered me a job and that

job like completely changed my life forever. I learned so much. It was like

forever. I learned so much. It was like self-development boot camp.

>> He must He saw you put in a full 12 plus hours that day and must have been watching and thought, "There's something about this dude that I like." So, maybe by saying 10, he was sort of testing you in a way. Yeah. Like, this guy mouths

off and goes home. Uh-uh. But you're

like "Okay."

>> Yeah. [laughter]

Yeah. So, um I mean starting from like picking up the trash, moving furniture, greeting customers at the front to like end up getting on the internet department and then on then eventually

into phone sales and then on the floor sales. Um and like I was always with

sales. Um and like I was always with him. So like at the end of the day every

him. So like at the end of the day every day I would, you know, pretty much do the walkthrough with him for he would walk around the entire store, leave signin sheets and check the inventory, move stuff around, pretty it up.

>> That's pretty cool. He's a really hands-on guy for, you know, at the time they were probably doing between 200 million 300 million in sales and I'm like with this old man every day for 12

hours and just like he's like just so philosophical. He's talking about morals

philosophical. He's talking about morals and principles and having like 10 sales meetings a day and I mean I just learned so much and seeing how he operated his business too.

>> Did you almost look at him like a father figure in that time? Yeah, and that time definitely like I had a lot of respect for him. He was like almost like maybe

for him. He was like almost like maybe like a grandfather almost because of his age, but like >> because he's [laughter] so old.

>> Yeah, he was like, you know, 70 at the time um whenever I started working there.

>> But I mean I spent a lot of time with my dad there too cuz he was working there as well. So like I learned sales from my

as well. So like I learned sales from my father and Mattress Mac where literally like 30 40 years of sales experience whether it was you know selling furniture or in the streets.

>> Yeah.

>> Yeah. And then so what where how where's the jump happen from selling furniture to I'm be real estate guy. Y'all hook up at a meeting. Does it

guy. Y'all hook up at a meeting. Does it

sound like you got lured out of the mattress business with bigger ideas just like you got lured out of Comcast?

>> Yeah. So um I loved it. I mean I made really great money like low 100 to 140 grand when I was there working three or four days a week.

>> And at what age? I was about 18, 19, 20 when I started doing that. I used to get paid hourly and you know when I was first started and then I got into sales and commission.

>> Yeah. And I was just like, >> you know, morning to night I was there sticking it out and um >> you can't get a good salesperson to go home.

>> Yeah.

>> Um but on the other days, you know, I was also in school at the time. So I

started at 15 working at Gallery and then I learned about real estate when I was 17. Um, I went to like a free Grand

was 17. Um, I went to like a free Grand Guardon event. There's like 500 people

Guardon event. There's like 500 people in the room. I just so happened to sit next to this one man that was willing to like teach me all the basics and like talk. He put me on phone calls to hear

talk. He put me on phone calls to hear his private money conversations to hear him talking to the tenants, sellers, buyers, whatever the case was. Like he

let me listen in on everything. He would

like give me like, "Oh, read this book and then tell me after you're done reading it, we'll talk about it together." So that like just trailed me

together." So that like just trailed me into it. I started driving for dollars,

into it. I started driving for dollars, sending mailers, and then that's how I got my first deal.

>> Yes, I know these real estate stories are crazy. And yes, I do have a coaching

are crazy. And yes, I do have a coaching program where a lot of these folks have built a business or revive their own.

Look, do these testimonials sound like something that you want to be your story. Look, it is possible. If you're

story. Look, it is possible. If you're

ready or you think you're ready, why don't you listen to the video and at least find out if it's for you. It's

linked down in the comments in this episode, so go check it out. You know

what? You've had multiple mentors.

I don't think everyone's out there to be a great mentor because I hear people always asking, "How do I find a mentor?"

I'm betting it's something about your personality. You were open to it. You

personality. You were open to it. You

built some relationships. You showed

characteristics that these people saw something in and multiple quality people were willing to mentor you. I think

that's something to do with you, not the mentors probably, because I know a lot of people are like dying to find mentors their whole life. Yeah.

>> Like, dude, this guy's an [ __ ] Why would anyone want mentoring you?

[laughter] Well, the opposite must have been true for you.

>> Yeah. I mean, willing to, you know, like >> very coachable, very teachable, >> and very loyal to the mentor, too, right? If they need something, like,

right? If they need something, like, dude, I'm there. Like, you know, whatever.

>> They're gonna open it all up to you, but they see it's worth it because you're giving back.

>> Yeah.

>> Um, so yeah, you know, like we meet at that Well, we meet at an event like I was about 17 years old, still still in high school. And then after that event,

high school. And then after that event, I started driving for dollars and like trying to get a deal, right? So, it

takes about four months and then like, you know, I land my first contract. He

actually ends get ends up getting involved. I get make a phone call to

involved. I get make a phone call to him. So he actually ends up helping

him. So he actually ends up helping selling it.

>> Oh, I got this deal. Can you sell it for me? You're my boy. We're Yeah.

me? You're my boy. We're Yeah.

>> Yeah. So, uh, and then I had like a couple other people help me in the process. So, a couple people ate off the

process. So, a couple people ate off the one deal, but it was like just proof of concept. I needed to see that it's

concept. I needed to see that it's worked, right? So, like,

worked, right? So, like, >> how much did you make on that first deal?

>> It was a $45,000 assignment.

>> That's a lick for your first deal.

>> Yeah. And then I probably made like 12 or 16 grand or something like that of it. Right.

it. Right.

>> Still, that's that's a month's worth of commission, dude. Yeah. Yeah. You know,

commission, dude. Yeah. Yeah. You know,

and like at the same time, I'm still working sales and I got this check and I'm like, "Oh, wow." Like I [clears throat] want to keep, you know, I want to get another one. Right.

>> Yeah.

>> But like it's it's crazy like a whole 12 months of learning trying >> um and I'm on my own at this point. Like

me and him still haven't partnered up.

Um but at this point, you know, I'm like learning how to market, talking to sellers, doing the lead genen. I don't

have a CRM, but 12 months of not getting another deal and actually trying >> [ __ ] >> Um, you know, wholesaling houses and trying to do that, right?

>> But you got some money in the bank and your living expenses must not have been high, so you were able to like be all right.

>> Yeah, at the time my expenses were not that high. Um, and yeah, I was just like

that high. Um, and yeah, I was just like really focused on trying to get this off the ground. Um, so after a while kind of

the ground. Um, so after a while kind of like, all right, I need to save some money again. I'm go really hard at work.

money again. I'm go really hard at work.

Um, and then that's kind of around the time when I I had about5 or $10,000 saved. I tell him like, "Hey, like I think I'm going to spend this money on some marketing.

Like, let's do this."

>> Oh [ __ ] that's a big risk at that time.

>> Yeah. Yeah. That's like, you know, a pretty good chunk of my savings, but I'm like, I'm just going to do it. And then

like, you know, I'm just going to, you know, I was working three days on the weekend and then four days trying to get, you know, deals going. Um, and then we kind of that's whenever we link up together after like hanging out and you

know just getting to know each other more. But he's like, "Oh, look. I just

more. But he's like, "Oh, look. I just

found this land thing and like this is just completed my first deal and this is where the KPI is." And I'm like, he telling me like the on the market I mean like you know the normal right now is

$2,000 $3,000 to get a deal on wholesaling single family houses and you got to deal wholesaling land for 800 bucks cost per contract. I'm like let's spend the money on that instead.

Yeah.

>> So, that's kind of how we found land and, you know, we just started focusing on that and that's really when it clicked for us.

>> That's when you guys got together and it started. All right. We're going to come

started. All right. We're going to come back to that in a minute. Let me ask you a couple questions. You've closed over 140 distressed property deals that most people would assume you need millions to build a business to do this. What's the

real price of getting started?

>> I think like honestly one thing that has gotten us this far was just being extremely resourceful, right? Like

something that we've been telling each other a lot lately is like you have everything you need right now. Like

you've been blessed with everything you need. Like there's nothing more that you

need. Like there's nothing more that you need to wait for. You just got to go out and be >> So it's really more about being resourceful and doing the work and figuring things out and less the capital.

>> Exactly.

>> How'd you learn to be resourceful enough to close six figure deals while most people are still trying to figure out how to save up for a down payment? Like

where' the resourceful [laughter] ideas come from?

I'm learning, I guess, from our past experiences. And, you know, he he been

experiences. And, you know, he he been in sales, I've been in construction, and I would have to be very resourceful to help my dad like put these bits

together, go out and, you know, quote, and I need to find this plumber now and this floor guy. And so, like, I had to like learn how to be resourceful.

>> So, these aren't outside ideas. These

came from here and here after some work.

>> Exactly. Just kind of like piecing the things together as you go. You know,

>> if I saw you guys on the street, I'd have no way to know that you guys are so productive and did a million bucks last year. What is the secret to that?

year. What is the secret to that?

>> I mean, really what we feel like we do this all for is like we have really pretty similar values, right? Like we're

not really interested in having a Lamborghini or anything, but like and being able to take care of your family, you know, make sure your bills are paid and you have some money, you know, put away. But like it's kind of the main

away. But like it's kind of the main thing. That's the reason we're not all,

thing. That's the reason we're not all, you know, Lamborghini foundation.

>> Yeah, exactly.

>> That might sound like some things you might have learned from Mac. That dude

does some wild marketing stuff, but I don't know that I've known him to be flashy when it comes to like personal stuff from what I see in the news.

>> Yeah. I mean, he does like so much for the community, but you know, he still drives like a Dodge 2015 [clears throat] car. It's not really ideal, which you

car. It's not really ideal, which you think, you know, you look at him in the street and you're like, you would have never thought if you don't know who he is, >> right? I like that you guys are

>> right? I like that you guys are operating in part of the business that in some states they're actively trying to make it illegal. What's your response to people that say wholesaling is a scam?

>> Man, I mean I think like there's always going to be a way to do deals and there is some like shady business out there.

Um you just got to be extremely transparent, right? Like I mean at the

transparent, right? Like I mean at the end >> can't that lose you a deal?

>> Yeah. I mean honestly being transparent has probably won us more deals than lost us deals, right?

>> No. That's what people need to hear, especially new people.

>> Yeah, I know.

>> Especially doing joint ventures. I'd say

be very transparent about that.

>> Very, very >> joint ventures.

>> Yeah.

>> You guys have made a living basically on broken properties, messy records, forgotten lots, title issues. How do you guys see gold where 95% of the rest of

the industry misses it? I think uh to a point where we were like doing wholesaling houses, everybody was just going after that, you know, everybody was ignoring the the like uh vacant

lots, just land.

>> They're looking at the buildings. You

guys say, "Hold on, what about this land over here?"

over here?" >> Exactly. So, everybody's ignoring it.

>> Exactly. So, everybody's ignoring it.

Even to this day, still some do, you know, they look at more like the actual buildings itself, houses, apartments.

>> And so, we kind of just said, "Man, >> this is a hidden gem." Like literally, especially when he was going back to speaking about the KPIs of like how much we got on a return based on the

marketing that we did.

>> It was insane. And I was like, "Wow, this is this is the way." You know?

>> So, it kind of seemed like an idea and then you tested it and it worked. You

said, "Dude, let's put our chips on red.

Just run it." Yep.

>> I love that. Everyone thinks sales needs lots of experience, but I think you guys built a million-doll sales team out of people with almost no experience. Yeah.

>> What is that?

>> I think sales requires more than anything like people to have hustle and and determination and resourcefulness too, right? Like we've built a sales team

right? Like we've built a sales team where we were like, you know, getting people into our Discord group and they were just coming in. They wanted to learn. They didn't have money to go and

learn. They didn't have money to go and do all this, you know, marketing and have this team, but they had the time and the hustle and the determination to do it. So pretty much we just leverage

do it. So pretty much we just leverage them to be able to sell our deals and all the stuff that we're requiring.

>> So they're the labor, you're the talent, and you help guide them. Yeah.

>> Yep.

>> We put together like a little module. We

had two calls per week that we were training them, >> you know, just guiding them through the sales process and showing them how to negotiate and how to set expectations for these buyers. And

>> so you guys were being the coach here, but you said one of your skills is knowing when to be the student.

How do you balance which time is the time to be a coach? When's the time to be a student?

>> I feel like it's always whenever like you you got to take your hat off when you realize you're in, you know, the room with somebody who's way more advanced than you and you need to be the student when a lot of times people just don't know how to like shut their mouth

and just kind of blame about themselves.

Like you got to be a student.

>> I think that speaks to your confidence and your humility. You can have a lot of both, but you don't have to run around with your chest out acting like you're the dude. I see a lot of that in both of

the dude. I see a lot of that in both of you guys.

All right. Now, I want to go back to where we're in this spot. You guys are talking. You've got this first deal

talking. You've got this first deal done. You're still selling mattresses

done. You're still selling mattresses and furniture and you're operating in the wholesale world and you guys start to like form this bridge together. You

did this deal together, but after that, like, you know, you're you're really trying and you're not getting the next deal quick. Let's talk about right then

deal quick. Let's talk about right then going forward. take me on this journey.

going forward. take me on this journey.

>> Okay.

>> Yeah. So, like for me, I mean, um, yeah, it was like every day trying, nothing happening or >> pulled out like six, seven, eight hours.

>> I mean, I was like calling, I just didn't have a CRM. I wasn't organized and I just didn't have put the time in to like just create small systems, right? Or small like

right? Or small like >> Who are you calling?

>> Uh, I was probably calling just homeowners with equity or whatever.

Something along the lines of that, right? Um, but if it's just spinning my

right? Um, but if it's just spinning my wheels, like what were you going through at the time?

>> Uh, well, in my first stages of like learning wholesaling and stuff, I got into acquisitions. Then I got into

into acquisitions. Then I got into transactional coordinating with the other company. So, I kind of started

other company. So, I kind of started learning, you know, every single department that it takes to, you know, have an operational company. And so,

at first it was like tough. I was like, man, I'm not getting no deals. Okay,

cool. Whatever. went under, went to another company and then I became like the transactional person. That's when I realized how important it is to drive these deals to the finish line and then

I was hosting the meetings for the company, you know, two times a week and I was kind of keeping everybody in line and then after that went down.

>> It's a little bit of management in that part, not so much sales but management.

>> Yeah. Yeah. Yeah. So I kind of learned you know management transactional and then after that I got into dispositions and I was like I kind of like this you know started selling houses and um so I learned all the parts of it. The only

thing missing was the marketing and uh he was already doing that. So

>> and I learned a ton from Mac too like >> about marketing.

>> Yeah. Marketing.

>> He sells he sells mattresses. You want

to sell houses? [laughter] I mean, it's the same principles, you know, like everything when it come to like building this machine, I was able to like translate and just look at what he did

cuz I like I moved around every single department kind of similar to him >> and I spent a lot of time with him. So,

I was able to like see how this machine actually ran. So, I just had to take the

actually ran. So, I just had to take the time to like sit down, think about it, like how could I translate that to this?

And that's really how we build it to how we are today. So like I mean now today I mean we don't just like wholesale we we actually close on stuff sometimes we raise money we've done a couple lot

splits um you know now we're getting really involved in the distress acquisition um you know even owner financing and selling notes like that things of that nature. So like we realized all right we can just create

this marketing machine you know we know the sales on the acquisition side and then you know operations has kind of been his part being able to push things through. Right. Okay.

through. Right. Okay.

>> So, I was being face to face at Gallery being able to learn how to talk to people on the acquisition side. So, I've

always kind of been on marketing or like at least over it and over the acquisition and he just kind of took over the second half.

>> Those are two kind of distinctly separate parts of this. So,

[sighs and gasps] you guys are kind of putting this marketing together. You're still

marketing together. You're still generally on separate teams but trying.

What's the thing that changes when you get, you know, this deal number two for you and and it's the ball search to roll? Did it happen quickly? Like what

roll? Did it happen quickly? Like what

what would that part of this journey look like? Because there are a lot of

look like? Because there are a lot of people that have a very similar situation. I bet you half the listeners

situation. I bet you half the listeners right now are literally right where y'all were there. Yeah.

>> And they're looking for like the breakout moment. So what what's that

breakout moment. So what what's that look like? I think like dividing the the

look like? I think like dividing the the the task and like all right I'm going to focus on this and you know once I get to this point you baton it off to him >> he's mega dependent on you you're doing

the marketing the sales he got no job without you making >> so it was a you know definitely I mean it's both pressure on both ends right cuz if you get a deal and it doesn't finish line you know

>> then we're stuck because we were even buying lots sometimes too and we were trying to figure out how we could like shorter our conversion so like we wouldn't just use an agent he would still sell the ones that the ones we

bought and we closed on. So it was just like a buy and sell like just >> So were y'all So at this time you got a couple deals to connect. You got your marketing to actually work. You figured

out your sales process and you got a couple sold. Did that start out quickly

couple sold. Did that start out quickly or was your volume like a little here, a little there? Was it still kind of

little there? Was it still kind of patchy in the beginning?

Uh, it was a little patchy in the beginning, but I think for the most part, >> well, like the first year of like because you got to remember it started to click towards the end of around 2021,

right? And you know, we kind of really

right? And you know, we kind of really started to we really clicked together and we formed a partnership maybe like towards September or something like that. September, October.

that. September, October.

>> No, >> I think before the end of the year, we finished about 10 deals.

>> Oh [ __ ] So you once you got the process, they started clicking. That

means you got three or four deals a month or two, three deals a month till the rest of the year.

>> Exactly. So then

>> you're paying the bills. You're bringing

some money in >> and we're both working at the time, too.

So we're working seven days a week. So

all that just being able to compile and then 2022 comes and we just start really putting our foot on the gas.

>> What happened in 2022?

>> That year we probably did about 60 land deals or 50 60 land deals. Don't get me wrong, like our margin was a lot. Our

average deal size was a lot smaller, but we were just turning through them.

>> What was your average deal size?

>> Probably like 11 or $13,000 or something like that.

>> And you're selling these to who?

>> End users.

>> So like a builder.

>> Builder. Mom and pop. Small company.

>> Little investors, >> retail people. Yeah.

>> A lot of the times maybe not even builders. It was actually like mom and

builders. It was actually like mom and pop that want to build a house for themselves and stay on there or put >> you find that those are unique buyers.

They're not coming and buying five or six from you.

>> Yeah, I know.

>> Yeah. So it was a lot of oneoff. Yeah.

It's a lot. That's that kind of marketing is a lot more work.

>> Yeah. So, like the dis side was actually had to be it wasn't just like a pocket of investors he could call. It was like finding a new person for every deal.

>> You're working it.

>> Yeah.

>> We build like a ninestep process for just the dispos.

>> Wow. What is the price point of these?

Typically these >> probably under 200,000 between like 50 and 200,000.

>> Okay.

>> Has to be affordable because you know it's end users coming in.

>> Uh-huh. And they're gonna either put a build a small house, a mobile home, whatever.

>> Cattle shops, whatever. You know, it's like >> you're doing some rural then too.

>> Yeah. All most of it was on the outskirt. It's not infield.

outskirt. It's not infield.

>> Really?

>> Majority up.

>> How did you pick that part of the market?

>> Going away from all the competition.

>> Okay. So, people were doing houses. You

guys thought maybe fewer people are doing land, but there might be enough demand. You prove that. Yeah. And then

demand. You prove that. Yeah. And then

instead of going downtown, which is very competitive, >> you it looks like you slice us a lot of different ways where there's the least amount of competition.

>> Yeah. So, in the beginning, we were like 25 to 50 cents on the dollar on the deals we were doing. So, it was worth it to buy, you know, buying good deals.

>> Yeah. So, um you know, that's kind of why we like to focus on it. The way we looked at it was like, okay, 20 to 25 cents to 50 cents on a dollar and it's just land. So, there's no construction

just land. So, there's no construction to eat into that margin. So, we got, you know, let's say we get it at 50 cents on a dollar and we sell it for 80 90 cents to get rid of it gone. Like, that's

pretty much what our game was.

>> There are a lot of different principles at work here that are all really smart.

You've got high velocity. You're moving

things quickly, giving a little bit of discount. You're picking the part of the

discount. You're picking the part of the market that might be underserved that you believe. There are a lot of good

you believe. There are a lot of good business decisions along the way. So, I

think that's I think y'all are wise in those regards.

>> Yeah. And since then, I mean, a lot of it has changed, right? Like, I mean, it's not as >> So, that was 2022, though. That wasn't

that long ago, right?

>> Yeah. About 2022.

>> Well, why is it what changed so quick?

>> Well, 23 was a pretty rough year where, you know, the interest rates rose, people stopped, you know, land definitely felt the impact, right?

>> Wait, hold on. Let me back up. The

people that were buying this land from y'all, were they paying cash? Were they

buying it on notes? Cash.

>> A lot of them were cash. We financed a couple oursel and held the notes.

Nothing crazy. Um but 23 when the rates rose, we were kind of stuck holding the bag a little bit like >> we had uh bought a property uh using hard money for the first time uh on a

piece of land. Yeah.

>> First time you do it, market changes.

[laughter] >> So it was like it appraised at 900,000 when we bought it and then we were we bought it for like 350 or something like Yeah, it was like 350 >> all in. Yeah. Um, so we were supposed to

be out of that the first four months. We

were under contract and then the buyer just like disappeared. So we had to sit on the market and that's when rates rose and we were just unlucky to be the ones to hold while the rates were up.

>> And we sold it a year exactly after.

>> Yeah. Really? How much did it sell for that time?

>> Uh, 700 750. Yeah. 750.

>> So even paying probably 40 50 grand in interest over that time, you still did okay. Was that because the market

okay. Was that because the market recovered or you just finally found that dead gum buyer who wanted it because you've been on the market so long?

>> I think the market started to recover then.

>> Yeah, around Yeah.

>> more people started coming out of >> Were you stressed out during that time carrying this? I

carrying this? I >> was stressed out. So, like, you know, >> cuz every month you're riding that $4,000 interest.

>> Yeah, it was $3,500 uh a month and then, you know, sales started to slow down, too. So, it's like if money's coming in,

too. So, it's like if money's coming in, $3,500 a month is nothing. But if

money's not coming in, $3,500 a month is $3,500 a month.

>> So, we [laughter] felt it, right?

But towards the end of the year, and this is something that I felt like we learned a lot from was like, oh, this this whole first nine months was like difficult. We didn't make that much

difficult. We didn't make that much money. I was like, did I lose did we

money. I was like, did I lose did we lose our touch? Like but the last quarter like was just caught up and you know >> so what when this is happening like

you're aware the market is changing or were you and you thought you might have lost your touch. How long did it take you to figure out what it really was?

Cuz we've been through the same cycles.

We've been in it for 10 years. We think

we're best blah blah blah. And then a year and a half ago in that same era things chilled out and we're like oh [ __ ] Is the market changing? Are we

buying shitty properties? We went back and looked at our inventory relative to our inventory in the past and then we got to the point where we thought, "Oh [ __ ] this is the market." How do we solve for that? Lower the price and we got everything to move in 60 days by

just slashing prices.

>> Yeah.

>> Is that how did that work for y'all?

>> I think so. You were just doing a lot of the research on the marketing side and >> Yeah. I mean, like we felt it. I think

>> Yeah. I mean, like we felt it. I think

the buyer what we had to realize was the buyer pool had shrunk. So,

>> you know, >> Oh, yeah. We had like oh tons of people going out and try to see this property before it's sold to like trying to like beg someone to go see one, you know.

>> Yeah.

>> Wow. So when you got that one sold, so it's a good amount of money. You got you got to repay the lender. You quit having to pay the interest every month, but you also stuck a couple hundred grand in profit into your bank account now. And

then at this time you're saying the market's starting to recover, so transactions are happening again. So at

that point probably like, okay, we're not going to lose our damn business.

>> Yeah. Yeah. That was a definitely a way.

>> Did that change the way you operated at the time? Because that was about a year

the time? Because that was about a year ago. Does that sound right?

ago. Does that sound right?

>> Absolutely.

>> What did you what what changed about how you operating then?

>> From then on, what we started to do was say, "All right, well, we're not sticking our money into any of these deals and just being like having everything tied up, right?"

>> Um, >> what we started to do is just like, "All right, let's just spend our bankroll on marketing and we know we know how to transact. We know we're comfortable

transact. We know we're comfortable with, you know, getting good deals." We

just started to raise money, family, friends or other folks that wanted to partner with us on the deals and we just like purely focused on transacting.

>> So you're kind of recapitalizing your business in a different way instead of having every do Okay. So these are this is interesting. You know, I've been part

is interesting. You know, I've been part of investment businesses. We bought our own business and what I see what's happening is you went through a cash crunch and you told yourself, "Whoa, I

don't want this to happen again. Let's

start using credit to do some of the operations and we'll keep some of our own cash so if something goes bad we got a backs stop.

>> Yeah, >> these are real I mean these are really good business decisions you learn along the way. Some people don't but you guys

the way. Some people don't but you guys are still continuing to make the good choices.

>> So it's expensive to service debt if things change. But if you have a bunch

things change. But if you have a bunch of cash sitting around, you can do it for longer.

>> And that's some of the advantages of debt if you don't overleverage, overdo it overshoot.

>> And and something I think we did in like 24 that also kind of changed things for us was like >> we just switched to taking a salary and then we just started to like >> have a stronger bankroll and

everything's you know like and it just makes us more confident in like making business decisions. Now we can hire

business decisions. Now we can hire folks. Now we can get quality people.

folks. Now we can get quality people.

Now we can just be more aggressive in the sense of like going out and doing what we need to do instead of like having the cash tied up in a project.

>> That's how you're supposed to run a business.

>> So many guys get in this and don't ever get to the good business fundamentals.

They're so worried about the deals and all this.

>> These are business fundamentals.

>> Most good businesses pay a fair salary.

Not enough to go buy Lambos and planes, but like pay the bills, be fine, and you keep that cash there. My business

partner is a CPA and he's helped me learn a lot just about good, stable financial business decisions. And his

comment was always, "Don't kill the golden goose. The golden goose needs to

golden goose. The golden goose needs to have everything it needs, which is usually money and space and support." So

that if you kill that golden goose by sucking the cash out or not giving it what it needs, this whole show is over with.

>> Yeah.

>> Keep that golden goose alive and you will be fine.

And I think it was like that for us in the beginning where we were uh >> were you managing your finances differently?

>> Oh yeah.

>> I mean like we would >> we were living differently for sure.

>> Take more home. Uh I think we still saved a lot but like we could have probably had way more you know like if we just started to do that earlier and we man I wish we started like this.

Man, I'm thankful that y'all are learning those decisions early on at these ages, though, because some people don't. And I see them get lucky and

don't. And I see them get lucky and build a big business, but they're not running it the right way. And when they have one little hiccup, >> boom, man, it's over with. So,

>> yeah.

>> And we operate so much differently now, too. It's like because before we used to

too. It's like because before we used to just, you know, >> go after the deal. When is the next closing? And we get paid and the money

closing? And we get paid and the money goes out so much quicker.

>> Oh, you'd immediately take it out of the company.

>> Yeah. And we would get paid much.

>> Yeah. So it was like a hustle more than anything, right? Like

anything, right? Like >> now it's more like I can breathe like you know >> sleep.

>> Yeah. And you just come every day. Yeah.

You come every day and like you just try your hardest and you just push for like the company and not for your personal >> Exactly.

>> You know different now.

>> These are the fundamentals of people who build a business the right way. This is

what happens. Now you got to get beyond the deal by deal hustle. You got to understand how to make this process work. do it enough times to build

work. do it enough times to build something and grow.

>> So then I guess one of the things that y'all really changed in this process was your deal finding machine.

>> That's that's where we talked about earlier. You don't have to have

earlier. You don't have to have experienced salespeople. Tell me about

experienced salespeople. Tell me about your Discord >> because I've not heard someone do it this way before.

>> Um yeah, I mean like what we just started to do was like I was like, "Okay, I'm going just do this and we're going to build a lot of JV partners.

you're going to get more deals >> for the acquisition side.

>> Yeah. For the acquisition, but nobody wanted to put in the work cuz it's a lot of work. It's money. It's energy. It's,

of work. It's money. It's energy. It's,

>> you know, like you have to build some systems and some processes. And we found folks that were really interested that really wanted to be a part of something and do deals and make a commission. So,

we're just like, "All right, well, we were thinking about hiring dispo folks."

And we're like, "Well, well, let's just direct it to here." Now, I remind you like, I mean, these are great people, really solid folks that love to hustle.

They were just average Joe's though. I'm

just being completely honest, right?

Like they didn't have Excel experience.

They didn't have a sharp, you know, way of talking to people. One actually is from Mexico. He just recently came and

from Mexico. He just recently came and like he was even able to make like five figure commissions. Like it's it was

figure commissions. Like it's it was really cool to see like these people being so happy and you know just being a part of it. So that was really cool uh to kind of get that going.

>> I like that. How did it how' this happen? How did it start? Like you had

happen? How did it start? Like you had an idea but what did you do? start

marketing on Facebook or Instagram and round people up. How do you even find these random people?

>> Yeah. Rounding them up on Instagram, Facebook, you know, just being loud about what we're doing, talking about it on social media, just all things land investing. [clears throat]

investing. [clears throat] >> Having events, too.

>> Yeah. Like local events.

>> Come join our Discord.

>> Have you So, have these folks stuck around and continue to work with you?

>> Yeah.

>> Yeah. Some folks have stuck around. You

know, I think we found like a solid four or five folks that continue to just >> Dude, that's an acquisition department right there.

>> Now, are they working a job or >> a lot of them do? Yeah, a lot of them do. So, they just kind of do this

do. So, they just kind of do this whenever they're not working. They post

the deals on Facebook. He gives them list of folks to call and you know, and they go out and do it and they bring opportunities and if they need help, you know, wrangle it up at the end, he goes in and you know, helps them out.

>> What is your sales or your I call it sales, but it's really acquisitions, I guess. What does your acquisitions

guess. What does your acquisitions department look like for the next 12 months? And does it include this?

months? And does it include this?

>> So on That's a great question. So on

that side of stuff, they're actually helping on the dispositions of our property. So they're

property. So they're >> Oh, y'all are doing the buying. They're

doing the selling.

>> Exactly.

>> I thought they were going to do help with acquisition, but nobody was really interested in doing that because it was a lot of work. They all wanted to just, oh, you already have deals. I'd rather

just go help you sell them.

>> Interesting. Much easier.

>> Yeah. So then I mean, as far as like the acquisition side, Yeah. I mean, we still got our mail side, you know, direct mail running. Uh, we kind of alternate

running. Uh, we kind of alternate between a couple different things. It

just depends on how it is at the moment.

Like, with marketing on, you know, the land flipping side or wholesaling or just whatever it is direct to seller, um, I feel like it kind of comes in seasons, right? Like one of them might

seasons, right? Like one of them might be really working really good and then text gets regulated and everybody stops and then 6 or 12 months later if you try it again, >> it actually works >> cuz everyone's out of the way, not

again. Mhm.

again. Mhm.

>> Can you explain to me what your marketing mix looks like right now?

>> So for the land side it's a lot of um you know right now it's mainly direct mail and text messaging.

>> Dude, you're back in the text message business and the direct mail business.

>> Yeah, direct mail has never turned off for us. It's always been year over year

for us. It's always been year over year what has brought us like the best return on marketing. Like

on marketing. Like >> is that what you said is about $800 per deal is the >> Well, it's changed a lot since then.

Yeah. So now it could be a couple thousand dollars, but our average deal size has been a lot greater. Like last

year was probably >> uh I think our average cost per contract or cost per deal was about 4,500 bucks, but our average deal size was about 60 grand. So it was

grand. So it was >> it's like 8%.

>> Yeah, it's Yeah, it's definitely worth >> That's a great marketing budget if you were to compare that to a lot of business models.

>> Do it. Um the you know you drive around the highway and you see those big like law firms that do the get hit by a truck call me.

>> Oh yeah.

>> I've got a friend who works with a couple of them and it's a very exact model of their revenue dollars. 30 about

a third 30% is exact direct marketing costs and every time they raise their budget their revenue raises by the same amount. It's literally direct

amount. It's literally direct relationship dollar for dollar. The

moment they shrink that budget, their revenue shrinks. But but the point is

revenue shrinks. But but the point is they're a third. So if you guys are less than 10%. Now if you start I don't know

than 10%. Now if you start I don't know if you we found when we have metrics like that as we start to grow it sometimes you have diminishing returns.

We find that with Facebook and Instagram ads. The more you go sometimes they

ads. The more you go sometimes they start to trail off. So you have to I guess have to find that >> the balance. Yeah. So that's why I say like sometimes some seasons other methods are great and you have to kind of switch them around because you could

you got to keep a pulse on it. If not,

you are going to get dim.

>> If you look away for a month and look back, you're like, "My metrics are [ __ ] I just burned a bunch of money."

[laughter] >> But that's why also we look at it on a yearly basis now like did we win over the year? I mean, we keep a post on it,

the year? I mean, we keep a post on it, but over the year, you know, just getting better, worse.

>> Oh, so I hear the way you guys have built a business. It's working. You're

growing. You guys are continuously being smarter about it.

But you know, you guys jumped into our distress property acquisition coaching program. If what you're doing is

program. If what you're doing is working, why'd you do that?

>> Oh, wow. So, last year uh that's a great spot.

>> Yeah. So, last year [laughter] we had some projects where um you know, owner reached out to us. He had a bunch of problems with his property where he just couldn't get it figured out. He tried to

sell, he tried to go under contract, he tried agents, they just weren't helping him. Um and they would just kind of keep

him. Um and they would just kind of keep putting his business away. and just

didn't want to deal with the property.

So, he reached out to us and he was the seller that got the lease for his property but was the most happy because of how much of a burden it was for him.

Oh, >> so you offered him like just much less dollars but you still did it. Yes.

>> What were the problems that he had with that one?

>> Um there was like a miss like a incorrect legal description. There was like a

legal description. There was like a pipeline that pipeline company that went out of business and got absorbed a couple times. Like BP pipelines, the one

couple times. Like BP pipelines, the one that did the one that did the spill and the Gulf of Mexico was the company that had the BP.

>> Yeah, it was BP. So

>> they get absorbed a couple different times and they can't get any information on this easement and just things of that nature. It's an area where there was a

nature. It's an area where there was a lot of like um oil field.

There was also a lot of um what do you call them? Uh pipelines and

call them? Uh pipelines and >> Eastman's and >> it was like just the middle of like south of Houston. Like there's not really any houses or anything nearby.

But we gave him you know a dollar he was happy amount and we ended up going and selling them and you know that ended up being a pretty close to you know pretty

huge profit right? Multiple multiple

multiple six figures I had to say three times. Oh, good.

times. Oh, good.

>> So, when what was your cost roughly for that?

>> Um, probably between three properties about >> So, you had three that all had a similar situation.

>> Yeah. Between the Yeah. So, we bought as Yeah, I didn't even realize that. So, uh

30,000 was a purchase of one and then that one, see, between all three was probably about >> 70 80 grand or something. How did you determine how to make that offer in that

time not being heavily trained in this stuff?

>> Oh [sighs] man, it was just more like I remember look cuz he literally said I would have took $500. I just don't want to deal with this anymore. But we gave him way more than that.

>> Well, that's the magic words when you hear people say that [laughter] like >> Yeah. So, we're like we gave him, you

>> Yeah. So, we're like we gave him, you know, five figures and he was extremely happy about it. Probably the happiest seller I dealt with all year, right?

>> Isn't that crazy? The least you paid but the happiest dude cuz you took something off his plate that he was done. Oh yeah,

he >> and um what I remember is at that point we take it to a title company, we buy and I you know before we >> Did you buy it with title insurance?

>> Yes. So before I I remember um like you know talking to him about the price and I think okay well I think the propertyy's worth this. I'm willing to bet if anything this is a good dollar amount that I'm willing to to you know

risk.

>> I'm willing to put this on the line if it becomes worth this. It's a risk I'm willing to take.

>> Exactly. So yeah, that's pretty much what we were able just to determine doing that one.

>> So then what about that made you decide, gosh, I want to try like these dudes coaching program?

>> So >> cuz you probably heard me on the internet talking a little bit about stuff like this. You're like, hold up, that dude, what he's saying may not be [ __ ] It just work for me.

>> No, that's a great point. So I went to the event in April of last year and I was like working through this deal. Mh.

>> Um, and then a couple different things like took what ran with it and it helped me complete some of them and then at the end of the year I'm like, "Wow, we did a lot of deals and like that was a lot of

work and then these set of deals just completely beat those." I was like, "I can't turn my head." Yeah. I can't turn my head.

>> It was too big to ignore.

>> Yeah. And then, you know, like we did some minor subdivides where you talk about tons of inventory, a lot of moving parts, and you still can make multiple six figures, but it's like a lot of work

and risk atti attached to it, right?

>> And time. Those deals take time.

>> Yeah. So,

>> to me, time is one of the enemies in this business.

>> Yep.

>> So, after realizing that and completing those, I was like, wow. Like,

do you still beat that? [laughter] So,

that's kind of how you know. So, if you went to our deal in April, then you're in this room of people talking about it like in such a different way than you've probably ever heard before. Like, people

are running businesses doing this. The

numbers I got aren't outliers. People

were doing it like this a lot.

>> Exactly. Whoa.

>> So, then you say, "All right, let me go see what this dude's program."

[laughter] >> Well, one of the one of the things that took me back the most is as, you know, a coach or a teacher and this stuff, I kind of look at a field of folks. I hate

to use the word student. I guess it's okay. But like I mean all of y'all most

okay. But like I mean all of y'all most of y'all are running successful businesses. So are all business people

businesses. So are all business people but you guys come in because you want to learn what we're doing. So I look at a field of folks and say okay once we get to this point people should start being productive. We teach a lot of ideology

productive. We teach a lot of ideology in the beginning and then we help people pick a market and the platforms, programs and systems and then everybody gets on the phone and it's usually about a two to four weeks after that we start

seeing contracts in and all that and we got another 60 to 80 days left and that's about where we see the real productivity. But we were on a call like

productivity. But we were on a call like right as we were starting to select markets and divvy people up into the groups and you're like, "Hey, I got these two deals." And you start talking about like, "I think I can get it for

this tiny amount. I might be able to make 100 grand." I'm like, "Holy crap.

This dude, y'all figured out where you were headed, took the information that we were offering and figured out how to make that negotiation and probably figure out how to solve the

problem before you were done or what it was. Like, you piece that information

was. Like, you piece that information together quickly and didn't wait till we got further along the line. You decide

to step out on a limb and do it. And

this is one of the reasons we like to have people in our program that have some amount of experience because you connect those dots so much faster than someone that we have to teach that's been in the IT business and now teach them in real estate. But it was exciting

because I believe that was one of the first deals that got done in that round of coaching.

>> And you're like, "Yeah, we want to make a hundred grand on like $150,000 property." And then you're like, "Well,

property." And then you're like, "Well, I got another one across the street just like that." I'm like, "Oh shit." Like

like that." I'm like, "Oh shit." Like

you're in the money. Like now that you have been through that process once on your own, a couple times with us, and been through like the teaching that we have,

it's my belief that you should have the skills and the support to really pick deals like that up in a much more systematic manner.

>> Does that start to influence your marketing and your pipeline building at a time like this? Or do you say that is going to be a support system to our

normal deals? If the deal falls out and

normal deals? If the deal falls out and goes in that route, we'll do it. Or do

you increase that look intentionally?

>> Yeah. So, kind of what it looks like today where um I'm kind of getting things off the ground on the distress side, right? Building systems,

side, right? Building systems, processes, trying to build a small team to help get the thing rolling. Um, and

then once like a deal is already ready to get completed, you know, warranty deeds ready to get sent out, um, that's when AJ steps in because he's way better at that than all I am. Like the process part.

>> Yeah. So, um, yeah, like looking at building the pipeline now. That's kind

of what it looks like. So, he's over all of the land flipping side and we still have pipeline, you know, consistently growing and deals closing on that end of things. But, we say probably shouldn't

things. But, we say probably shouldn't stop that yet. Let's keep this growing.

>> Just like keeping your job. Yeah. So,

this is kind of [laughter] how it feels.

Yeah. It's kind of how it is nowadays.

Yeah.

>> Yeah. We didn't even think about that.

>> Dude, I beat people over the head with don't burn the boats and other people say burn the boats. Like, dude, if you burn the boats and can't find somewhere to land, you're going to drown. I'm not

a big fan of that.

>> Yeah. And and I think after like all the stuff that we've learned, he's on all the calls. We're on all the calls. And

the calls. We're on all the calls. And

like we have a confidence to where if we wanted to do that, I have no doubt in my mind that we'd, you know, be okay without it. But it's like, you know,

without it. But it's like, you know, it's a system. It's a machine. is

working on its own. Like it probably doesn't cost him as much time to actually get a deal completed pretty much. So

much. So >> yeah.

>> Um >> yeah. So now we're focused on trying to

>> yeah. So now we're focused on trying to build a pipeline around the distress side and it's kind of, you know, it's going pretty well right now. It's just

even [clears throat] growing making phone calls. That's the main thing.

phone calls. That's the main thing.

>> That's exciting. You know, you make 10, 15, 30 grand on these, you know, wholesale type or just hurry up, take it down and resell it. But when you can make 100 grand on one, two, 300 grand on another, those move the needle so much.

so much.

>> I was looking at a report that we have with a JV partner and it still just reminds me how different people can be. They decided

that they didn't want to build the back half of the business. They wanted to build the front end, the acquisition side only. So, he got a gal to help him

side only. So, he got a gal to help him with sales or acquisition calls and then him. And I think they have a VA. So,

him. And I think they have a VA. So,

they're pulling the right data. They're

working really hard on the research and then they have to do a lot fewer calls per deal because their research is very pointed. They did a good job. Right now,

pointed. They did a good job. Right now,

our inventory that we have in their JV entity has 64 properties. That's bigger

than most people's complete pipeline.

>> Yeah.

>> Yeah.

>> So, of the Well, I take that back.

That's not full. Of the 64 we've sold 12 or something like that. So, there's

55ish or 45ish or 45 or 50 range that is current inventory that we own some percentage of.

or we in 100%. It hadn't been sold yet, but it's a significant inventory. And I

looked at our total cost on that and it was 740,000 is what we've spent to buy this, but the fair market value of that inventory was like 1.9 million.

>> So, there's probably a million in profit. Let's just say some things don't

profit. Let's just say some things don't go right. And there might be 7800,000,

go right. And there might be 7800,000, but there's a lot of like fairly small deals. We bought for 10 that are worth

deals. We bought for 10 that are worth 60.

>> Yeah.

>> Like there's still great margins. And I

noticed 15 or 18 of those are across two families. So like one family had like 12

families. So like one family had like 12 properties in this deal and another family had like six or seven. So when

you look at 65 properties, it sounds like a lot. But when you break it down, it's two families and then I don't know 20 other deals, it's much more manageable.

>> Yeah. Yeah. But it's fun to see how everybody's business takes on like different shapes and sizes.

uh although they've been trained the same way, there's a million ways to do it.

>> That's true.

>> And I think like coming here today and realizing seeing everybody in the office, being in the group, and like we've put something together, just got some of the folks in Houston from the group and I'm just like, wow, everybody's in a different group and

they all kind of have different approaches to it, which is really cool.

We all still have something to learn from each other at that point.

>> You're right. We interestingly enough, we learn a lot administering a coaching program. We're doing a deal in Georgia

program. We're doing a deal in Georgia right now and we're picking up some stuff there, like figuring things out.

And it it's pretty neat when you get a bunch of hardworking, super bright people all headed down the same direction. We do get a lot smarter

direction. We do get a lot smarter together, even if we might have been around it longer. That's not the the ultimate like deciding factor.

>> A minute ago, you talked about Napoleon Hills, Think and Grow Rich. Let's talk

about that for a minute. Hm. Okay. So,

this was the time when I was working on average like 70 80 hours a week at Cameron for the oil company and I was just doing a lot of the basic stuff,

cleaning, doing the uh picking up the shavings and stuff.

>> Labor.

>> Yeah, there's a lot of labor work, intensive work, changing the cooling and the machines, you know, that cut into the pipes and stuff. And so

I figured, man, I was like, man, there's there's got to be more than just this.

And at the time, I was single. I didn't

have a girlfriend or anything. So, I

didn't even care, you know, why not put the hours, work hard, make some money, and then just chill. And um I don't know how I came about it, but somebody told

me about the book and went and bought it. And we had three breaks every day

it. And we had three breaks every day since they were 12-hour shifts. We would

have a 15-minute break in the morning and then lunchtime 30 minutes and then another 15 minutes in the afternoon. So,

I took advantage of every time that I had a break to go in the car and just read the book.

>> Mhm.

>> Um cuz I got to a point I was like, man, I cannot be like these people here. And

I'm not trying to like, you know, talk down on anybody or anything like that, but I had felt something inside me that I needed to go do more than just this.

You know, seeing some of these people get old in there, it was like, man, I don't want to do this. I don't want to be >> You want something little different than that?

>> Yeah. I don't want to do this, you know.

And so I started reading the book. it up

in my mind and the ideas of just one day being an entrepreneur and just building a lifestyle that would fit not just for myself but for my

family and you know just help them in any way possible that I could because even to this day that's my ultimate goal is just being able to help my parents you know and our future kids that me and

my wife have will have one day and just leave like you know legacy behind just to help them. Is that mainly what what is that? So the title is think and grow

is that? So the title is think and grow rich.

>> Is it about money? Is it about legacy?

Is about time? What? I have not read that book.

>> Oh, it's a really good book.

>> What's good about it?

>> It's it talks about the concepts of you know money uh the principles of it. Um

talks about like self-development like the mind like growing. I just you know financially emotionally spiritually everything. It has it all. I also think

everything. It has it all. I also think like uh it might have been like a study across some like really successful people from a long time ago and like the principles of success, right? So like

talks about all of that, you know, the principles of masterminding, the reason it's important and like what you could pick up from it. It's a it's a great book. That's the first book that I

book. That's the first book that I actually got into as well that I got recommended.

>> You're able to read it all the way through.

>> Yeah, I was able to read it all [laughter] the way through >> because you get exciting about it, you know. So yeah, so that's what changed my

know. So yeah, so that's what changed my life. And

life. And >> so you're doing general labor. You're

reading this and it's very ivory hat tower talk. It sounds like like really

tower talk. It sounds like like really high up here.

>> Oh yeah.

>> But it might have been very far away from where you were at in that moment, but you could still see a connection, I guess.

>> Yep. Yep. That's that's kind of what got me hooked on to it, honestly. I was

like, man, what the heck? This isn't

correlating at all with my life or anything, you know, and people that I speak with and seeing them how they talk and interact and I'm just like, "Oh man, I don't want to be like this, you know?

I want to I want to like change my mind and change the way I think and see things in life and uh just want better for myself and my family and I think just coming back from a background of so

I was born in Mexico that's where I was born and seeing my family grow up very unfortunate you know they didn't even have money for like just eating meat throughout the week they would only eat

meat like maybe once a month so it was like a privilege type of thing you know so and I I can see a lot of reason why like it was a different kind of change for me. I was like, man, I don't want to

for me. I was like, man, I don't want to be like that, you know? I want to break this. I want to get out of that. I don't

this. I want to get out of that. I don't

want to just It's a high level accountability. Today in 2025 in the

accountability. Today in 2025 in the United States, I hear so many people have all these things they want to [ __ ] about. And I and so many times I say,

about. And I and so many times I say, why do you even care? That is

immaterial.

Eating only having the privilege to eat meat once a week. Maybe not having a house that is sealed where bugs can't get in. I mean, you might have some

get in. I mean, you might have some leaks in the roof where water's coming in at night sometimes. Like, you know, I've been to third world countries. I

spent a summer in Costa Rica when I got out of school. Like, I've seen the way some people live. I'm like, I mean, we I didn't grow up great. You know, there are times where my dad we had an old seller finance house. We got foreclosed on cuz my dad didn't make the payments

after my grandma made the down payment.

The house hadn't been remodeled in probably 60 years. I mean, it wasn't the sexiest of houses. Like, one, I never forget, man, my backpack that I got a new Oakley backpack. I saved up and bought it. And I was so [ __ ] pissed.

bought it. And I was so [ __ ] pissed.

I left food in there. And I woke up one morning and there was a hole in the damn pocket. The rat eats a hole through my

pocket. The rat eats a hole through my new bag to get to the food. And I'm

like, are you [ __ ] kidding me? I

can't win to save my life. But that was deflating. I know that's a small thing.

deflating. I know that's a small thing.

>> Yeah. No, but still get >> And we're still living in America and it was a safe neighborhood and all that, but I was still pissed. I'm like, dude, I don't want this.

>> Yeah. No, no, no. So, I think today people get so mis misaligned with they're not calling me by the right type of word for my name

or I should be more respected than that or like get the [ __ ] out of here, man.

What really matters? Get to work. Like,

>> yeah, >> look in the mirror and say, I want better.

>> It's my responsibility to do that.

>> That's it.

>> Not why are they not giving it to you?

Why is it like this? Like, get the [ __ ] out of here. Go get it for yourself.

Entitlement is real big, you know. I

mean, a lot of people, >> but the only way I feel like people can have that much entitlement is by growing up in America in 2025 >> and

it's it's very misdirected I feel like.

>> Definitely. Definitely. But yeah, once after reading that book changed my life and started getting more involved with my dad and remodeling type of world and was like, man, I'm just going to help you build your business, you know, help

you along the way. So, I got along working it, figuring it out, knowing what I had to do, and um understanding the concept of money and how I can

actually go out and make money on my own, not just have to rely on a job or a company to give me the hours so I can make my money, you know?

>> You wanted to take their accountability of you controlling your income.

>> Exactly. Yeah. So, then I noticed like, man, this is >> a very high level of accountability >> and it changed my mind completely. I

mean, I really started liking it and of course it was stressful. I didn't know anything about business. That was my first book ever. So, I was stumbling a bunch of things, but along the way just learning.

>> Today's 2025. 15 years ago was 2015.

What did your life look like in 2015?

Where were you working? What were you doing?

>> So, that that was the years that I was working at Cameron. Yep. So, I was working at Cameron and left that job, went back to another oil company I was working for.

And as soon as I >> You read that book by then?

>> Yeah. Yeah, I've already finished it.

Yeah. And I think I added to another one. I just don't remember. I know. Just

one. I just don't remember. I know. Just

that one's very, you know, stuck in my brain thinking about all the time. And

um soon as I left that job, went to another wheel company. And then that's when I quit that company. It was funny funny to say, but I don't think I mentioned this to you. Uh my first business that I had was actually a car

wash. It was at my

wash. It was at my >> double car wash.

>> It was at my parents house. I would have people come. So I would work 5 days a

people come. So I would work 5 days a week and then Saturday, Sunday hitting 10, 12 hour shifts, washing cars and having people come to my house. And it

was funny cuz the way I was marketing it, I was getting people through like social media, Snapchat back then was very useful.

>> Mhm.

>> And so that was like the first actual legit business I had. So 10 years ago, you'd gotten the entrepreneurial bug, but things hadn't changed radically

yet. They're just starting.

yet. They're just starting.

>> What about you, Allan? 2015 10 years ago. [laughter]

ago. [laughter] What' your life look like?

>> Oh man. Um

I was what I was see I was like 13 years old or something like that.

>> Um >> 13. That was right about the time your

>> 13. That was right about the time your dad was getting out.

>> He got out when I when I was 15. So like

two years before. So yeah, we were still pretty >> Yeah, we didn't really have much at the time. I was probably skateboarding doing

time. I was probably skateboarding doing something like that, you know, all the time.

>> So you weren't working yet? Yeah, I

learned how to fall and get up, I tell you that. [laughter]

you that. [laughter] >> Um, but yeah, I mean like kind of a little bit after that, too. Like I

almost went down the same path as my dad. Like, you know, it was kind of

dad. Like, you know, it was kind of headed, you know, for a couple years and then, um, then I got into gallery and I just kind of like that's when the self-development camp kind of really what I felt like.

>> I think a lot of people take that wrong path because they don't have any other role models, leadership, and they want to do better. They think they can, but it's just such a far gap to get there cuz they don't have anybody to look up

to. But maybe you getting that job over

to. But maybe you getting that job over there gave you folks to look up to an opportunity to know it's real.

>> Yeah.

>> That might have been the most impactful thing in your life to date.

>> Yeah. Cuz I mean, I was like an obsessive type of person when it comes to like, you know, making a difference in my life.

>> Could have gotten obsessed with the wrong thing.

>> I almost did. [laughter] I was on that route. But [clears throat]

route. But [clears throat] >> I'm glad I was, you know, able to go there and just kind of completely change. Dude, a lot's happened in 10

change. Dude, a lot's happened in 10 years, huh? I love that.

years, huh? I love that.

>> So, what do Tell me what y'all's business looks like today. How many

people are involved? What's your

day-to-day like? Give me a layout, like an organizational chart kind of. What's

that look like?

>> So, I mean, what you want to go over like kind of what you've what you do?

>> So, on my end, um, I'm handling right now the relationship parts of the people, just kind of keeping them accountable. Uh, whether that's on the

accountable. Uh, whether that's on the acquisition, getting more involved in the marketing, and then team members.

>> Yeah. And um so I handle all the disposal side of course and then I have people just bring me buyers that I need to help them close the deal, whatever the case is, and just get them to the finish line.

>> How many people is there directly involved in y'all's operation today?

Right now >> in the office there's five of us and then we have like two remote folks in Mexico that help us with a lot of backend stuff.

>> Um and that's with the way we kind of talk about it's like that's internal, right? Like it's everybody working in

right? Like it's everybody working in our business all the time.

>> So it's five, it's you two, three others and then a couple people working remotely.

>> Exactly. So one acquisition, um Francisco and office doing like all of marketing and there's a lot of campaigns moving all the time. Right.

>> And then admin that kind of helps us with TC sending contracts, prepping stuff, doing everything in the back.

>> And then how many people are in your Discord helping you with dispo >> that are solid? I would say they fluctuate between like six and eight people.

>> Okay. So, you have somewhere around 10 hands at all times when I move.

>> Yeah. Give guarantee.

>> Yeah.

>> What do you think? What would you guess that cost you in monthly overhead roughly because you're paying a little bit of rent, you're paying some salaries?

>> Yeah. So, a lot of the folks on the sales side, like with the dispo team, they don't they just get commission only. I like that.

only. I like that.

>> And the way we structured it, too, is like, hey, yeah, we we did want to try to keep a relatively low overhead, right? So like um pay a couple salaries.

right? So like um pay a couple salaries.

We talked about this before we get in.

What was it like uh maybe 10 grand with rent a couple salaries and then >> that's good.

>> And then our salaries as well on top of that. So I don't know probably like all

that. So I don't know probably like all in around 20 to 25 grand probably what we sply basis.

>> So you've been able to keep that a little bit lower because you have variable pay for quite a few team members.

>> Yeah. Just depends on, you know, their position, right? Like admin's probably

position, right? Like admin's probably going to get paid like a B, you know, just like a normal salary. And then

>> folks who come in and get into sales, they might get a small base and, you know, majority commission.

>> We like to get folks in and give them a base, but they earn their way out of it in four months. And usually by month two or three, we're either going to say, "All right, let's get you off the base."

Because they've already gotten their pipeline built, or we actually can see that they're not going to cut it. Yeah.

Yeah.

>> So, we we pull it, but we try to give up to a fourmonth >> runway runway.

>> Yeah. And I feel like that's a good time. We've talked about that, too.

time. We've talked about that, too.

>> Uhhuh. That's enough to decide if it's going to work or not.

>> You know, we've been through different iterations of pay. We've kind of landed after this amount of time where we're at, but a lot of the folks in the administrative side are salary for us.

But like I've even got folks in the administrative side that say this is a salary, but I've given an annual goal.

if we hit this goal here in revenue or this many people in the coaching or this many followers on social media platform there's bonuses tied to that. So even

administrative people can see if I can affect these goals like I'm going to get a significant like >> 10 to 20% of my annual salary as a bonus in the winter time. So

>> and then like have more involved in it.

It's like they're a piece in it too because we similar thing like you know we do certain things or you get bonuses we give opportunity. We want people to make money, you know, like we don't necessarily want to be the ones keeping all of it. That's what a lot of folks

think but >> they're greedy.

>> Yeah. [laughter]

>> If you're greedy, you get it all. You're

going to get to do more of the work.

>> If you're generous and help and like and make it worth other people's time, they got a reason to come back. They got a reason to like you. They got a reason to come to your place over others >> every single day.

>> Don't be an [ __ ] Share this money.

Plus, at the end of the day, let's just say over a career, you're very generous to people around you. And I don't know, you're worth 10% less when you die

because you were generous to them.

>> That 10% doesn't change your [ __ ] kids's inheritance. And it's not really

kids's inheritance. And it's not really going to change the way I live. No.

>> But if I have a better operation over the 30 years I'm in business, that is a great spend of 10% of your net worth.

>> Absolutely. Absolutely. And and and I feel like in our office where people kind of feel like they have a piece of it like they they you know they they take a lot of accountability and you know if we need someone on a Saturday or Sunday we can make the call and you know

they're there for us.

>> You don't feel guilty because you're making it worth people's time.

>> Yeah. You got their back. You know I like that. I definitely like that. Right

like that. I definitely like that. Right

now marketing changes a lot in this exact moment. What would you say your

exact moment. What would you say your marketing mix is? Like what percent is social media? What percent is referrals?

social media? What percent is referrals?

What percentage is mailouts >> and cold calls? Yeah. Um, probably right now a good 60 70% of it is male.

>> Dang, that's hot. That's a lot.

>> Yeah. Um, and this is just like on the land flipping side, you know, and the rest of it probably be text and some JVS. Um, some through social media, too.

Maybe like 10 15% of it happens.

>> Social media. Are those ads or referrals?

>> Just referrals talking about what we're doing. Um, and then on the, you know,

doing. Um, and then on the, you know, distress side, it's literally just calling folks.

>> Straight. I have not figured out a way to get distress leads other than calling, digging and calling.

>> Yeah.

>> Yeah. [sighs and gasps] >> Those people need to be found.

[laughter] >> They need to be saved, man.

>> I think on the flip side, too, like you look at it like on the distress side, the legal budget a lot of the times ends up being your marketing cost for the deal anyway. So, it's like, you know,

deal anyway. So, it's like, you know, the [clears throat] margin is just way better. [laughter]

better. [laughter] >> That's exactly right. Programs,

platforms, and systems. What do those look like right now?

>> The main thing we're on is monday.com.

>> Um that's kind of what we built everything on your CRM.

>> Yeah. So like

>> is that how's your leads do?

>> Yeah. Leads, project management, distress property acquisition.

>> Um it all of our KPIs, everything marketing like >> So you dialers What kind of Do you'all use a dialer or do y'all use the app on your phone that records through it?

>> Just your phone. Yeah, your phone.

>> So then that's the backbone. Everything

you got to run through Monday?

>> Everything is running through Monday. If

Monday was to go down tomorrow, I would probably have a heart attack.

[laughter] >> What's it cost for that platform the way you'll have it set up a month?

>> Um, it's actually really affordable. Um,

you probably cuz depending on your size, I think we spend probably between $400 $500 a month on it.

>> And we got 10 people.

>> That's your main operating system.

That's very fair.

>> Yeah. And don't get me wrong, you do got to build it out. You do got to get good at using it. But like once you get >> How long did it take starting up now?

How long did it take and what was the cost to build it out to work the way you want it?

>> Um I didn't pay any developers themselves.

>> Oh, you did it? Yeah. Okay.

>> Um you know Google, YouTube and a lot of time you know uh they have a lot of stuff online on like how to build it out and I feel like for our business model

like it wasn't just oh I can go get a third party uh you know CRM and just like use their white label or whatever the case is. Like we had a lot of different stuff that we wanted to build out and like >> very custom.

>> Yeah.

>> Um >> how long did it take? Was that a weekend or was this like a month of work?

>> That was months. I think it took >> it was a it was like to get it all up and running, you know, maybe a couple weeks, but you always are going to make kind of small adjustments as you go by and as you're it gets more mature

>> tweaking. You know,

>> tweaking. You know, >> we've got some really neat reports that we we use Salesforce and Podio in different places in our company, but we've got some really awesome reports in Salesforce that we can run that's like

an inventory type report and it can be total inventory like all deals done with this entity or deals that are currently with this entity, what did we pay, when did we buy our first interest in it,

what is the fair market value of it, uh county, um number of owners, like there's a lot of information in there and I just found out the other day. You

might be able to do this with Monday. If

as long as you fill out the file correctly for that lead, when it's time to create closing packages, he hits the button and it spits out our closing packages with their name, legal

description, everything. And that puts

description, everything. And that puts out like the deeds, the HUD, like everything.

>> Yeah, we've been Yeah, we just got that set up.

>> Dude, >> it is a pain in the butt making your own closing packages, but when you can hit that button and do it, >> it's so much easier. Yeah,

>> that's how the title companies do it.

>> Yeah.

>> Mhm.

>> How are you guys doing the affidavit?

>> We help with drafting, but since that is a legal document, that's a statutory form in Texas and the other states that allow alternatives to probate. Um,

that's a a manually created document.

We've got templates and we'll help the family. But our process is like this. We

family. But our process is like this. We

interview folks. We collect all the information. We'll research what they

information. We'll research what they tell us to make sure that they're not like hiding three people or have lied.

[clears throat] >> So, we've got to validate that information in like ancestry.com or gravesite.com or whatever, like all these different places, the census. Um,

and then also the research program. So,

we'll validate the things they're telling us to make sure they're not lying. And then we build this file that

lying. And then we build this file that we download all those PDFs, the supporting information, and then we'll draft the document. And then all that goes over to the attorney and we say, "This is what we believe to be true.

Here's our supporting documents. Please

crank out our final doc." And sometimes they make changes, sometimes they don't make a lot of changes, but it has to go to them because we can't be responsible for the production of that.

>> And then they'll put their stamp of approval basically created in the office of blah blah that goes at the bottom.

>> And my gut says we do 70 to 80% of the actual work. But they've got to be the

actual work. But they've got to be the ones to kiss that thing. They've got to be the ones to approve it and say, "Yes, this research looks good. We like it."

>> Okay.

>> Kind of the reason it's become like that is we can we're doing all that research anyway. It's not that much work to fill

anyway. It's not that much work to fill in the blanks on this thing.

>> But it takes twice the time and twice the price if we just do the research and send it to the attorney. Let's just put it all together while we're here and then let them decide what to do. Yeah.

>> Finality, I guess, of it.

>> Makes sense. Now, the tricky ones are we've chosen to create. So, like when you're looking to build a good title, a title chain, we participate in that because we're

buying deeds from people. We're

sometimes helping with affidavit of airships or other curative affidavits.

And we're my goal is to try to look at that from an underwriter perspective.

So, underwriter is going to run a report on this thing. They're going to have all these title documents, the abstract. The

underwriter and the examiners are going to look at that and say, "What do we think this means? How do we feel about it? And if you let's say there's five

it? And if you let's say there's five dead people on this file and then there's three living owners.

The way the affidavit of airships work is there's an affidavit of airship for each deceased person. I don't like that because that means an examiner has to go search in the land records five different times. Who knows what kind of

different times. Who knows what kind of weird documents they're going to find or mistakes they're going to make or do they actually find three of five affidavits? I don't know.

affidavits? I don't know.

>> We pile them all into one. So, it's like uh affidavit concerning the facts of deedent whoever's on the vesting deed, that

person and maybe that person's wife. But

then we also put and all the other dead people in that title chain, we put them all here too. So, the vesting deed, the last deed of record for a person in the land records to this property, that shows up at the top. So when you index

it, you'll find that person, >> but then you'll also immediately see like the remaining deedants and instead of it being two pages or three pages for this one dead dude, >> we put all of them in there.

>> And that means a title examiner has to search for less documents.

>> It's less work to put this file together. They find one and they go

together. They find one and they go through all these dead people and it points out the three living owners at the very end. Like we have pieced this together for you. It's on a plate.

>> No more than you need, >> right? So [laughter] the easier we make

>> right? So [laughter] the easier we make it for a title um underwriters, examiners, escro officers, the easier it is to underwrite this file, the easier it's going to be.

So that's why we create those in a little different way.

>> Yeah.

>> The biggest one we've done.

So when you look at the document, it'll say affidavit of facts concerning the heirs of Logan Fulmer or whatever. And

that'll be like a title at the top. The

biggest one we did actually had that heading that stretched the entire first page and it didn't actually start until the [laughter] top of the second page.

>> Oh man, >> I don't I'm going to go back and look.

There were probably 30 or 40 dead people in that >> just >> entire family tree. The vesting deed was from the late 1800s.

>> So there were lots of born and dead people in this chain. It was

>> wow, >> dude. that that affidavit was probably a

>> dude. that that affidavit was probably a $10,000 document between all the legal work, all the research.

>> And and to think like [laughter] >> I mean that property probably was just stuck there. They couldn't

stuck there. They couldn't >> do anything with it, send it to the auction or anything like >> it was [ __ ] So, there's a tax lawsuit on that one. And I remember there were

that one had it was somewhere between 60 and 65 living owners, but with all these dead people in the title chain, the tax entity that was trying to do the foreclosure. They've been trying to

foreclosure. They've been trying to foreclose for five or six years because the Adlatam attorney kept having to go back and do more research. They'd find

more owners. This was a messy file for them. And they finally started posting

them. And they finally started posting for foreclosure, but they missed half of the owners. They ended at like the

the owners. They ended at like the estate of this person, but that person would have more kids. They finally said, "Forget it. We're going to do citation

"Forget it. We're going to do citation by publication to [clears throat] the unknown heirs of Logan Fulmer." And they were doing a bunch of postings like that. That was it. Now, title company

that. That was it. Now, title company after that foreclosure would have happened. The title company may not have

happened. The title company may not have wanted to ensure before four years because there were so many people that were unserved. It was just the estate of

were unserved. It was just the estate of the unknown heirs of.

>> Yeah. So, we helped clean that up and we actually sent that completed affidavit to the tax entity so that they could clean up their file, but also we knew that if we didn't get this thing

done with reasonable people in a reasonable amount of time, we would want them to foreclose to move the file forward and we'd get paid out of excess proceeds. So, we sent that to them and

proceeds. So, we sent that to them and said, "Here's everyone you're looking for [laughter] and feel free to go ahead and serve us. We own 70% of it at this point." and it caused them to actually

point." and it caused them to actually complete that foreclosure sooner. And

the last person who was being a knucklehead was acting like they owned all the property because they paid taxes for a few years. And at the end, I'll never forget, we were negotiating with this gal and we got served by the

sheriff for the foreclosure. And we went and looked on the docket search and noticed that she had been served in that same week. So immediately I'm like, "All

same week. So immediately I'm like, "All right, we're negotiating, but this puppy's going to sell in 21 days. So

what are we going to do?" And that was what caused our final settlement to get real. She owned 10%. We owned like 87 or

real. She owned 10%. We owned like 87 or something like that. And that caused her to come across the line say, "Okay, >> come to reality point on how much you really got."

really got." >> Yep. That was by far the biggest

>> Yep. That was by far the biggest affidavit of airship. 60 65 owners. We

were all in that one for $250,000.

There's like 60 or 80 grand in back taxes, which we literally paid at the very last minute. Once she finally got on board, we the day I like the week before the sale, we satisfied that.

But we paid like 130 140,000 out to owners, you know, 500 here, two grand here, six grand here, 600 here, just little by little. She was the last one and one of her siblings or not one of

her siblings, one of her nephews.

And when we were done, we sold that thing for one and a4 million dollars. So

the net profit was about a million on that one. It was half a year deal, lots

that one. It was half a year deal, lots of contention, long one, >> lots of work, >> but it was worth it.

>> It was worth it.

>> Yeah.

>> So, you guys have have come to a point where we've been talking and I've started to understand that y'all make pretty sound financial decisions. Some

people just make them from the beginning. That's how they're wired. It

beginning. That's how they're wired. It

sounds like y'all were making those decisions along the way and improving.

So, you are fast learners. But when

you're working at the mattress place um and you're working at the with the labor, those are still pretty good paying jobs.

>> Yeah.

>> And even when you're doing the cable installation, 50 bucks an hour, 100 grand a year, those are good paying jobs. How are y'all managing money at

jobs. How are y'all managing money at the time? Were you saving a lot? Are you

the time? Were you saving a lot? Are you

spending a fair amount? Like what that look like?

>> I was actually saving a good amount.

Yeah. I just I was just so scared to be broke again. That was kind of where

broke again. That was kind of where that, you know, I was, >> you know, just putting dollars away. And

I knew one day eventually I was going to use it for something to keep it growing.

>> Was that just going straight into your savings account basically?

>> No, just my checkins and I mean, you know, I would always kind of figure out something to get into to make some money. So, I mean, it was kind of always

money. So, I mean, it was kind of always used for that.

>> Okay. So, you were somewhat disciplined.

What about you?

>> No, not me at all.

>> Were you spending what you're making?

>> Yeah. Yeah. It was uh every Friday there was a time a period where like every Friday I was getting paid 2,000 3,000 a week whatever.

>> What did you do on Fridays?

>> Oh, man. I would spend 2,000 [laughter] in the weekend. What are you buying?

>> Just spending it on expensive food, buying guns, trips [snorts] hotels, paying $600, $700 a night at a hotel. Like just being stupid

hotel. Like just being stupid >> living outside of >> living outside, you know? Of course. And

it's like and it all came back to reality of like I've never made this much money. I never I never seen my

much money. I never I never seen my parents make this much money. So I

didn't >> have a little fun.

>> Yeah. Let me have a little fun.

>> But the reward I'm going to reward myself.

>> Exactly. Yeah. And and it got to the point where, you know, I I realized, oh, dang, what I'm doing is a cycle, too.

Like, it's a season. Um because I got to a point in that company where there's no work for 3, four months. And that's

where I hit a brick wall and I was like, "Oh shoot.

>> I was balling last month and right now I got no work. I got no money.

>> I have no money." And so after that happened, that's where like it hit me in the head and I was like, "Man, I need to need to slow down, chill, you know, >> save for rainy day."

>> Started saving. And when you would make those big spins and go on those trips that were expensive and all that stuff, did you feel like this is my reward? I

earned this. I deserve this. Like did

those trips make you feel happy or better about yourself? Did it serve the purpose that you thought it was serving?

>> For the moment being I think it did, but then realizing like, man, I could be doing a lot more than just this. It's

like helping my family.

>> It was good in the moment, but it was fleeting.

>> Yep. Exactly. It was just like quick reward, you know, satisfaction feel.

some instant gratification.

>> Basically like a high, you know, and >> almost like a user of drugs. The pattern

is very similar.

>> Yeah. And I think a lot of folks get in that, you know, pattern real quick, especially if you never made an X amount of money in your life and you start to make it and then before you realize you're like, man, I'm just spending it

and I have nothing to show for, you know, and it sucks. But I tell everybody out there, if you're making good money and you've never made that money, just save it or invest it because you'll be

happy you did.

>> I can connect with that. When I was working the oil field, I burned a lot of inheritance money beforehand. I went out to the oil field. I didn't have much, you know, that's why I went to go get this job. And I remember dudes were

this job. And I remember dudes were getting big paychecks and they go buy a new bass boat. They'd show up to the job site in this brand new like F350 like bad ass. I'm talking like big trucks.

bad ass. I'm talking like big trucks.

>> And it makes you almost want to Yeah, I would see that. But I remember I'd gotten to the point where I had three or 4,000 left in my bank account when I got hired out here. And I and I'd had hundreds of thousands of dollars at

any given time in my checking account after that big inheritance. I'd gone

down to almost nothing. And I remember getting these checks thinking like, "Wow, I got a lot of cash in my bank account. It's growing again." And these

account. It's growing again." And these dudes, they would [ __ ] you know, it's oil field man. Everybody talks [ __ ] and rough rough characters. And I remember they'd be joking. I'm pulling up in like a nice safe vehicle, but it's not sexy.

paint wasn't looking that good and you know maybe like this tire didn't match that tire but it was safe and nice clean for me and they would always talk [ __ ] and joke but I remember I'll never forget man when the pricing of the

barrel of oil started to have pressure on it back in 2015 for a while people were getting laid off not getting rehired to the next job >> and I remember those dudes would call and be like hey Logan man I I got laid

off do you know someone that's retiring right now do you know anybody outside of the company and I was like dang that sucks But I remember a couple of them were like they were like stressed. They

would say, "Man, I got to make this mortgage payment." And I remember

mortgage payment." And I remember thinking, "Oh, that's that dude that literally was showing us the pictures of the new bass boat or roll up in that new truck." And at that time, I had years of

truck." And at that time, I had years of say like years of my monthly expenses saved. And I remember thinking,

saved. And I remember thinking, I could get laid off tomorrow. I

remember thinking, I can get laid off tomorrow. But then I also remember

tomorrow. But then I also remember thinking, I don't give a [ __ ] I have two years of salary saved. [laughter]

>> This guy's like like going crazy on this idea. I can't get laid off. He's just

idea. I can't get laid off. He's just

chilling.

>> And in this moment, I'm like, "Oh, dude, all this time, this is what I've done."

>> Yeah.

>> I'm not stressed. He's [ __ ] stressed.

>> Okay, this was the right decision. Even

while I'm getting in my F-150, it's not that sexy driving where I'm driving.

>> Feeling better about now. Question I got about that, right? There's obviously

moments where you probably come up on some big windfalls of cash. And I feel like something that has changed and kind of we're trying to figure out now, right? where it's like, "All right,

right? where it's like, "All right, well, we're so used to kind of putting the money [snorts] we do have [clears throat] out so it could, you know, come back with more in the future."

future." Like, what do you do to manage that to like, okay, well, I have enough, but I'm still able to transact. I'm still able to do deals and put money out, but like it doesn't shrink all the way to the bottom.

>> You start to get to a point where like your almost like your minimum balance, like there was a time where at least if I had 50 grand there, I felt comfortable. Well, as the business grew,

comfortable. Well, as the business grew, that 50 grand would grow. There's 100

grand, there's half a million, there's cash, there's a million bucks, like and that and ne we never get below that and we just kind of operate that way. Well,

as the company started to grow, I remember thinking, this company usually requires about this much cash and or credit line to operate. And we would plow every dollar back in for many years. About two, three years ago, we

years. About two, three years ago, we got to the point where excess cash would grow. And I remember thinking, oh, like,

grow. And I remember thinking, oh, like, and then I would always listen to these talking heads like cash is trash. Money

needs to be at work.

>> And that's why that's why I bring that question up cuz that's what, you know, we kind of >> that's [ __ ] [ __ ] Grant Cardone, I respect the dude. Dude is a baller.

Yeah. But he says that because he's trying to convince people to invest their money in his fund and stuff like that. I think that dude carries more

that. I think that dude carries more cash and he wants to let on.

>> Oh yeah.

where I ended up. So I looked at it in a little more global way over time and asked myself, do I need to have this money deployed? Like we've had seasons

money deployed? Like we've had seasons where the market was slow, our inventory wouldn't sell, so we had to discount, get it to move. There are times where our revenue would dip. And I liked having this money over there. It made me

feel good. So as the companies would

feel good. So as the companies would build that cash up, I started to find these times where we would go apply for credit lines or like commercial credit for a building or something like that.

And I remember I put together my personal financial and the banks would like to see what my financial would look like. And I would also put together

like. And I would also put together business financials, but they wouldn't look at the cash in the company the same as cash outside of the company because money in that company is owned by me and these two other dudes. And that money

can be drawn on immediately. I have to vote to get a distribution. You know,

it's not quite so liquid.

>> So over time, I started asking myself, okay, how how does my personal financial need to look? And a couple years ago, we started voting to draw more money out of

the company, but that cash would just go on my personal on in a like a blue chip stock because it's pretty liquid and stable, or I'd put it in a CD, which only pays 4% return, or I would just leave it in cash,

>> but I'd take it off the business books, put it in my personal financials. And

then I was starting to watch my personal financial look stronger and stronger.

And as we'd come up with like an interesting investment opportunity in the companies or outside of the companies or whatever, I could choose to make those decisions. But I personally started to build my personal financials.

So there would be millions of dollars in cash andor blue chips andor CDs sitting there. And I found my companies if you

there. And I found my companies if you have a headcount of three people, six people, whatever, that company doesn't need a lot more than X dollars.

>> So I just I let it run with that. And

sometimes you'll have an interesting specific investment like it's apartment complex. There's one big ranch to flip

complex. There's one big ranch to flip or something. But generally I started to

or something. But generally I started to find a place where it had the amount of cash it needed.

>> So I would draw that out, put it on my personal financial. Even still today,

personal financial. Even still today, man, I don't live off more than probably 300 grand a year.

>> Yeah.

>> Relative to the total package, that's nothing.

>> Yeah.

>> But we got a good life, man. We got nice cars. We got a good house.

cars. We got a good house.

But what people don't understand is like look at how long and and how much maturity it took in the business to grow to that point when like some people are a couple years in and they're already getting that stuff but they don't have

the strong foundation.

>> You're building that foundation now and you'll hit a time where your business starts to mature enough and cash starts to build a lot but you got to decide like what do I what do I want for myself? You might want to reward

myself? You might want to reward yourself with that Lambo one day. And if

you do, that's okay.

>> But for me, it was just to build a really good personal financial. One of

the reasons I did that is one of the partners is about 10 years older than me, >> and he had a big life event happen a couple years ago. And I remember thinking, what if he comes to me and says, "I'm going to retire. I'm done."

Like, I'm happy for him. I want him to do that. But also, that means he would

do that. But also, that means he would be signed off of all of our credit lines, off of our debt. He would want to be off in, say, 12 months. Am I strong enough financially to be the only the

strong the lead guarantor like the main dude now? And at the time I was not. So

dude now? And at the time I was not. So

I had to work really hard to start to build my personal financial and look at business decisions to make make sure my personal tax returns. I started to pay more taxes. Yeah.

more taxes. Yeah.

>> Because said, you know what, I'm going to take less depreciation and I'm going to go on ahead and pay the taxes because I need to recognize that revenue on my personal tax return so that my trailing tax returns look more robust.

>> That kind of sucks. Got to pay more in taxes. But I'll tell you what, man. when

taxes. But I'll tell you what, man. when

I show up to the [ __ ] bank now.

[laughter] And that's a flex that no one gets to see. We talk about that today. My wife

see. We talk about that today. My wife

knows it. The bankers know it. Few

people in business.

>> No one knows out there.

>> Yeah.

>> But I've built a moat around our business. First I had to build a

business. First I had to build a business to be strong and have enough cash to run. Then I had to build my own personal so that if a partner left or financial catastrophe happened, I had

the strength to withstand that. Now both

of those hurdles have been met.

When that happened, me and my wife said, "Let's get some new cars." Got some new Escalades. Both of them same day.

Escalades. Both of them same day.

Badass. Like, here we go.

>> Yeah.

>> But that didn't move the needle.

>> Yeah.

>> We just bought a new house.

>> The best neighborhood you're going to get in Bear County. Like, I'm a block over from the Red Mcomes estate. I mean,

I live in the neighborhood with two of the billionaires. I bought this house

the billionaires. I bought this house from the ex-wife of a local billionaire.

like this is I mean we're we're getting there really. But the only time we felt

there really. But the only time we felt comfortable doing that is when these decisions didn't even move the needle.

Yeah. And that's 10 years in lots of hard work, lots of financial um deferring gratification. The things

you're saying >> it's starting to pay off and we feel comfortable there now.

>> Yeah. Which is really cool to like see that, right? Because like we're in a

that, right? Because like we're in a part now where it's like, okay, now our business has a good foundation. We have

cash. We're not struggling for the next 6 months. It's like okay, but it's like

6 months. It's like okay, but it's like now you're thinking, right? You still

got to keep growing, but now we something to consider is probably the personal side. Maybe we got to get our

personal side. Maybe we got to get our personal side more stronger cuz it's like, do we leave it here? Do we keep pushing? Do we keep trying to grow, but

pushing? Do we keep trying to grow, but when are we going to be able to get, you know, to some of those rewards, right?

>> I think those are the times you start to maybe expand your personal lifestyle a little bit. I do want a little bit extra

little bit. I do want a little bit extra stuff. I do want a little nicer house.

stuff. I do want a little nicer house.

Mama wants a new car. Those little

things probably won't kill you now. So

[clears throat] find a place that feels comfortable and rewarding but not overdoing it.

>> Yeah.

>> Yeah. Yeah.

>> The other thing is as these businesses grow like you have opportunity for different um debt, different capital.

>> So like with a lot of our deals, you know, you can't really use uh lending.

So we started growing credit lines and those are unsecured. Those are based on a personal financial like they're just personally guaranteed signed on but they have no collateral.

>> Yeah. So that allows us to buy fractional ownership and property, dirty title that we buy all of it, but it's got a title defect. We just draw off the credit line, the send the bank an email and move 100 grand from the credit line

into the account, send us a title company tomorrow, put we buy it.

>> How was it to get that? Like was it difficult to get past because, you know, it's like a pretty niche that not a lot of people know. You go talk to a guy at a bank about this, he never heard of it in his life. Like what did that look

like?

>> We had to figure out how to present.

First off, we had to get our financials in a place where the bank would even like respect us.

>> And you got to have up-to-date accounting frequently, quarterly reports, personal financials, income statements, all that. And then your personal financial. So those get updated

personal financial. So those get updated four times a year. We close out. The

first thing was focusing on our finances and our books and accounting, but we close out the month 10 days after the month ends every single month. So we've

got like very clean financials, quick up to-date. There's no six months later we

to-date. There's no six months later we haven't closed out 2024. Like it's done.

Once we got that done, then we started to say, "Okay, now that we at least have our books in order quickly, now let's look at our personal financial. Does it

look strong? How much equity do we have?

How much cash do we have? How much debt do we have? How does that look?"

>> I bet that's like either makes you feel good or gives you that like stab in the stomach when you look at that. Yeah.

>> At first, I'm like, "Oh [ __ ] we got good books, but the books say that I'm not that I don't have it together as much yet." Now we got to fix that. Once

much yet." Now we got to fix that. Once

you get to that point, we started going to the bank and and we had to explain.

We actually worked really hard at our pitch, so to speak, because you go to a banker who's generally risk averse and say, "We're going to buy a 30% interest in this property that people are fighting, they're like, "Fuck that. We

don't want that."

>> I didn't get into that detail. I said,

"We're buying property with title problems and bringing it from an inefficient to an efficient marketplace.

It usually takes us 120 days to get inventory ready for sale. Look at this stuff as widgets. don't look at as real estate because we're bringing a component of liquidity to a generally illquid type of asset. So I would put

together ratios like I think they call it a quick ratio. It's your inventory turn. How quickly do we move inventory

turn. How quickly do we move inventory and it 120 days is about our inventory turn. So we would turn the same dollars

turn. So we would turn the same dollars four times in a year. I was showing them things like that. So they would look at it almost like a manufacturing company.

>> They produce this many widgets every quarter.

>> So you're not a real estate investor when you go to the bank. you know, they know we are, but I was talking about our inventory and our cash flow management more like an operating business. And I

would encourage them to look at these addresses as widgets, like a computer manufacturer or a trailer manufacturer.

>> And that helped them see our business in a different light.

>> Yeah. Yeah.

>> They still are smart. They know it's real estate. They're not misrepresenting

real estate. They're not misrepresenting your line.

>> But when you talk about it that way and and you help them understand it that way, it's different. And then the important part is they don't care what your inventory is. My personal

financials were good enough to sign off on that credit line that if they choose to close our credit line, they know that I'm going to be able to pay that sucker off no matter what the hell happens to what I spent the money on.

>> Yeah.

>> And when they're looking at our personal financial saying, we feel good about that. But we started our first credit

that. But we started our first credit loans only 50 grand. And that we were our business was way bigger by then. 50

grand don't do much.

>> Yeah.

>> But we got 50 grand. We would draw it down, pay it off, draw it down, pay it off. We'd intentionally do that every

off. We'd intentionally do that every two, three, four weeks. Draw it down, pay it off, draw it down, pay it off.

Then after six months, we went back and said, "Can we get this to 250?" And we just worked our way up.

>> And over a course of a couple years, you know, the one that started at 50 grand is now a million bucks.

>> Mhm.

>> And then that's across the companies, each person. He's got 800 grand, he's

each person. He's got 800 grand, he's got a million.

>> And what that allows you to, I mean, not have to use all your cash on some of these because I mean, who knows how long they take sometimes. you would hope to be out in four months, but sometimes you're into some other stuff.

>> So when you look about look at how much equity do you want in a business, one of the companies specifically has 2 million in equity and almost a million in credit line. So that gives about three million

line. So that gives about three million to operate on. We operate first on the equity. That's the cash that we retained

equity. That's the cash that we retained and we've grown. We use that. But once

we get to the point where he's about out of that and he's starting to go into that million dollar credit line, that's the time we say, "All right, dude. You

need to start moving some of this inventory or go back and clean up some of these files that have been sitting because you got a million a runway. You

got 30% of your runway left. But as you know, it takes a while to clean files up, get them out. Once it hits market, takes a while to sell. Markets can slow down. So you got a million. You got

down. So you got a million. You got

overhead expenses.

>> You got expenses to clean up some of those other ones. Now we're using credit line. Get to work this pipeline now.

line. Get to work this pipeline now.

Turn it over.

>> That's interesting. So like it sounds like you guys go out and go deal hunt.

Bye bye. Bye bye. And at the same time, you're selling some, right? You still

got operation. People are helping.

>> But we hit a point where people get lazy and they've been selling the easy [ __ ] >> We're like, "Whoa, whoa, whoa. Let's go

do some cleanup work."

>> Yeah.

>> Makes sense. Yeah. Cuz

>> any real estate person has like those peaks and valleys.

>> Same thing as for us. Yeah. That's why

>> I don't know that you'll ever get out of that. Like we focus on it a lot,

that. Like we focus on it a lot, >> but still freaking up and down. Yeah.

>> Just gets bigger. [laughter] It just gets bigger.

>> That's right. You know, if you're a company like Apple who's manufacturing iPhones and computers and you balance your manufacturing with your sales

volume and as your sales volume slopes downwards, you you slow production down a little bit, like they're very tight, just in time.

>> But these businesses are lumpy. They're

not big enough to have that kind of velocity. [clears throat]

velocity. [clears throat] >> I ask you about what did your life look like 10 years ago. So, let's start with AJ. I want you to take today to talk to

AJ. I want you to take today to talk to the 10 year ago AJ. What's your message for him today?

>> Wow.

[laughter] >> The message to me 10 years ago.

>> That dude needs some inspiration. That

dude has no idea what's coming.

>> Most importantly, what I've realized in life is um just putting God first in everything that you do. And I've always been brought up as a believer, but

there's been times in my life where it just, you know, decided to go my way and decided to take, you know, life in my control, but at the end of the day, it's not in our control, it's in God's

control. And so ultimately, just having

control. And so ultimately, just having that faith and believing, especially if um if God had put something in your heart to go after, then that's that's a

sign that you should just never stop.

you know, stay committed and be persistent and things will just figure out in their own way as they should.

>> AJ, it's okay. Keep the faith. You'll be

all right.

>> Yep. Yep. Cuz a lot of times, we know we we try to do things our way and we we come to a point we're like, man, it's not working out, you know, and we try to force it, but at the end of the day,

we're not the ones, you know, who's who's building our path of life. It's

someone much bigger than we think. You

know, >> your story only depends on you a little bit. Also depends on somebody else, too.

bit. Also depends on somebody else, too.

>> Yep. Yep. Yep. So, I think uh that's probably primarily number one. Um

educating and education is like number one key. I didn't understand how big it

one key. I didn't understand how big it was until Allan was always like, "Man, let's go to the events. Let's do this.

Let's invest money here and a coaching [snorts] program or something." And I've realized how important it is like the education part, you know, because it all starts up here, you know, and then it goes to your heart because,

>> you know, you connect.

>> And so just by doing all those things, I think is probably the the ultimate like key points that I could definitely reflect on and and be like, "Wow, this is this is going to be all right." You

know, >> it's a good message.

>> Um, 13year-old Allan, [laughter] what did you tell this kid?

>> Get started into DPA faster. Get

started. Um, I mean, I I think a lot of the similar things that AJ just talked about, uh, probably get into de self-development earlier would probably be huge. Uh, because it all starts

be huge. Uh, because it all starts there, like you said, right? Like you

got the right mindset, you know, resourceful to figure things out. Like

you can do literally anything. Like

sometimes we look at some of the stuff we like, well, how do we get to this point again? Like, you know, just just

point again? Like, you know, just just winging it. And uh

winging it. And uh I mean also getting around the right people like staying around the right people, staying away from the wrong people, knowing what you need less of and what

you want more of is, you know, just as important.

>> Get started. Get around the right people. Yeah. A lot of this is here and

people. Yeah. A lot of this is here and here. You're right.

here. You're right.

>> Yeah. There are newbies out there in this business. Either they just got into

this business. Either they just got into it or they're headed this direction.

What's y'all's message to those folks?

Hm.

>> They're looking at y'all and admiring what you're doing. What do you tell them?

>> I say a lot of what a lot of the problem is a lot of people will go on YouTube, listen to everybody that's speaking about what they're doing in their lives, careers, something that you're you're trying to align yourself with, right?

Like if you're trying to align yourself with DPA, you're learning from Logan or you're trying to do wholesaling and start an operation like we did. I think

uh a lot of it starts where you know a lot of people spend a lot of time in reading and learning and not acting. So,

I think just taking action and and I think that's kind of how we did it. It's

just like we didn't plan to have an operation the way we have, you know, we didn't have the systems or anything and all we cared about was just getting that first deal done, just getting it started

and and that's what we ended up doing and we just took off and just kept growing and growing and growing and before we knew it, we're like, dang, what the heck? How did this happen?

>> No one knows what they're doing. Some of

us do it anyway. And then there's a famous quote actually by Grant [clears throat] Cardone where he says uh you know if you don't know it, you just figure it out along the way.

>> Yeah.

>> Um I mean I think uh being intentional first of all and then also what I remember one time I was at a meeting with Mac. It was like 10 o'clock at

with Mac. It was like 10 o'clock at night on like a Saturday or Sunday.

Yeah. [laughter]

>> He's a machine.

>> Yeah. No, seven days a week like from sun up to sun down like but that's what I like I was able to learn like what it took right and there was this meeting he talks and like the end of the meeting

he's it's real intense he's like screaming he's um you know like not not in an angry way but it was real intense like cuz this is his livelihood like he put seven days a week for the last 40

years into this place right >> so what he said at the end of the meeting is like if you want this if you want to succeed like you have to give your life for you have to be willing to give your life

for it. And he's like just straight open

for it. And he's like just straight open eyes looking at everybody like eye contacts like you have to be willing to give your life for. So if you're ready for that like know what you're signing up for, >> dude.

>> So that was like super like I felt it like in my stomach, in my chest, and I was like, "Okay, well anything that I'm going to say I'm going to do, I'm going be careful with what I say cuz if I'm saying I'm going to do it, I'm going put

my life towards it, you know?" So that's they that's what I would say to anybody just getting started. That's a huge message from a hugely successful person that you can hugely trust with that message because he did it.

>> Yeah, >> that that's really neat to be able to something we didn't talk about too much about encouraging people is to to find right people that you respect and try to get around him the best you can. It's

hard as you get older because how am I going to, you know, buddy up next to some dude who's wealthy and got nothing that I can give to him. But I think it's easier as you're younger. You can work for these people. you can contribute and

god picking those right people like I don't even know that you intentionally plan that it just kind of happened you saw the opportunity and thought dude I'm here let's do this >> yeah and kind of like we were talking about earlier like just being loyal like I still stop by today and I like

>> that's cool >> if they need like uh like volunteers for something like I'll stop by I'll help like it's not about money it's like >> the dude helped change your life >> exactly >> God that makes me think of a gal worked

at a tanning store her name was Pam Daniel who was peeing actually but when she came to America because she changed it. She called herself pimps. It would

it. She called herself pimps. It would

be more like standardized around here.

And I worked for her for like three or four years. She taught me how to sell

four years. She taught me how to sell tanning lotions and packages. And people

laugh, but I got paid 10 to 15 bucks per and we'd tan 100 to 200 people a day during the busy season. Plus, I got a salary. So, you know, I was in junior

salary. So, you know, I was in junior college at the time. I'd make like six, seven, eight, $900 in a week. So, 20

years ago, for me, that was a lot of money. And I had no before that I worked

money. And I had no before that I worked at a bike shop so I didn't make dick.

And it was neat to be around this lady.

She was entrepreneurial. She came here from China with nothing. Went to

university and built three or four businesses. She was earning a great

businesses. She was earning a great living. Big old house, nice cars. Like I

living. Big old house, nice cars. Like I

respect this lady so much. And I

remember after I'd left town and I hadn't really started much yet. I

was trying to find my way. I came back to visit her. She cooked dinner. I went

at her house. It was fun to catch up with her and I was inspired. Man, I got a long way to go. Man, this sucks. I

wrote her a letter about three or four years ago. I said, "Pam, I want you to know how much you affected my life, how much I learned from you and all this." And I looked up her address

all this." And I looked up her address and I sent her this letter. And a couple weeks later, I'm like, "Dude, she never called me. She never sent me a letter

called me. She never sent me a letter back. What the flip?" So, I go look in

back. What the flip?" So, I go look in the appraisal district, there's a different name on the property. I'm

like, "What the?" I Google it. I found

her obituary. She passed away of cancer.

And I was like, "Oh my gosh." Like, I almost felt like I had a loss here. and

I never got a chance as like a successful adult to call her and tell her, "You made a big difference in my life." So,

life." So, >> wow.

>> When I think about my experience there and your experience still stopping by and giving back, if you have the opportunity to find these people that have helped you and give to you along the way, you probably should tell them because there's going to be a time when

you can't.

>> That's true.

>> Yeah.

>> Yeah. Wow. I'm just kind of thinking about that moment, >> man. All right, guys. This has been fun.

>> man. All right, guys. This has been fun.

I enjoyed it. Thanks for sharing your time with me and any other folks out here that aspire to be on a path like you guys are on. Um, if they want to get a hold of you, what's the best way to do it?

>> Uh, for me, I'm on Instagram a lot. Uh,

just my first name, Allan, A L A N H. My

last name, Kintto, Q U I N T E R O. And,

you know, follow me, shoot me a DM. I'm

always loving chatting with people about deals.

>> AJ, are you out there or or you quieter?

>> No, I have an Instagram, but I got rid of it.

>> [laughter] >> It was distracting me and you know so I only got uh Facebook now. So you can just find me on there. It's Abamel. My

first name A B I M A L. Last name is Jimenez. J I M E N E Z. All right. Well,

Jimenez. J I M E N E Z. All right. Well,

whenever we publish this episode, I'll put y'all's contacts there in the caption. So, thanks so much for your

caption. So, thanks so much for your time. I appreciate it. I've enjoyed it

time. I appreciate it. I've enjoyed it and learned a lot. So, thanks for coming on today.

>> Thanks for having us. Thank you so much.

>> You got it. My commitment to you is to deliver the most interesting, messy, and profitable real estate deals on earth.

And in exchange for that, I only ask that you subscribe to this podcast and share it with a friend who can benefit.