00:00this is the Bigger Pockets podcast show
00:03749 I never thought that while I was
00:06doordashing in college not having the
00:08most Clear Vision of what I wanted to do
00:10after that real estate would allow me to
00:12own over 10 properties right around a
00:14million and a half in valuation and have
00:17the ability to create some long-term
00:19consistent cash flow
00:21what's going on everyone this is David
00:22Green your host of the BiggerPockets
00:24podcast here today with my co-host Rob
00:26abasolo with a show that is going to
00:29blow your mind today's guest is 22 year
00:32old Josh Janus who has already
00:34established a real estate portfolio of
00:36over 10 properties is also Selling
00:39Houses as an agent he sold 17 billion
00:42dollars last year and in this episode
00:43Rob and I get into how he's doing it and
00:46what he's figured out that other people
00:47haven't my mind is still blown Rob how
00:50are you feeling it's it's one of those
00:52things where I'm just like when you find
00:55someone that sort of unlocks something
00:57in real estate and they're absolutely
00:58crushing it it's super impressive but
01:01when you find someone that's 22 years
01:03old making six figures a month doing
01:06really well in real estate it really is
01:08just one of those things where I'm like
01:09man I gotta catch up and I'm like 10
01:11years after this guy yeah and that leads
01:14us to today's quick tip
01:16started real estate early right how can
01:19you get started now I've often heard it
01:21said that the best time to buy real
01:22estate is 10 years ago the quicker you
01:25get that clock started the better it's
01:27going to be for you the best deals that
01:29I have is the stuff that I bought the
01:30longest time ago that that does not mean
01:32to buy bad deals early but buy good
01:34deals early and wait Rob what's
01:37something about today's show that you
01:39think people should keep an eye out for
01:40you know even with Josh's success and
01:42how much money he was making which we'll
01:44get into that in the episode he was
01:46still really honest about his fears
01:48getting into his first property that he
01:50probably could have straight up paid
01:52cash for in like one or two months and
01:55so it was just nice to hear that even
01:57someone that could be making so much
01:59money could still be vulnerable and kind
02:01of fearful in their first deal but it
02:02was really cool to see the glow up and
02:04to see that that first deal kind of
02:06catapulted him to where he is today so
02:08yeah just a really cool uh inspiring
02:10moment I think to just hear him put it
02:12all out there yeah and he also shares
02:14how he got started in business making
02:15duct tape wallet and doordashing like
02:18this is a person who listened to the
02:20podcast driving around dropping off Jack
02:21In The Box and pizzas and turn it into a
02:24real estate Empire just like many of you
02:26that are listening to this now really
02:28want so this is what I will listen to
02:29twice and pull as many pieces of
02:32information as you can out of this story
02:33to think of how you can apply it to your
02:35life without any further Ado let's bring
02:38in real estate Phenom Josh Janus today's
02:42guest Josh Janis knew in high school
02:44that he wanted to retire by 30 years of
02:46age so he built and managed different
02:48side hustles from duct tape wallets to a
02:50successful sneaker business Josh was a
02:53college student who also drove for
02:54doordash last year at age 22 he sold
02:57over 125 properties in his first year as
03:01a real estate agent totaling over 17
03:03million dollars as an investor friendly
03:06agent he has purchased and renovated
03:07over 10 properties using very little of
03:10his own money in real estate over the
03:12last seven months we are going to unpack
03:15this today Josh welcome to the podcast
03:17thank you yeah it sounds like you have a
03:20strong entrepreneurial focus and before
03:21we get into how you accomplish
03:23everything that I've said what was it
03:25about real estate that attracted you in
03:28so when I was younger I was always
03:30trying to save money
03:32um I didn't really know exactly the most
03:33productive thing to do with it but I was
03:36like hey I might as well stash it away
03:37and eventually I'll figure it out I had
03:40around like ten thousand dollars saved
03:43um like free Capital to use and I was in
03:45starting my college career and I was
03:48introduced to the idea of house hacking
03:50when basically Googling what to do with
03:52ten to twenty thousand dollars when
03:54you're 20. and that led me to Bigger
03:57Pockets and that was kind of my
03:59introduction to real estate as a whole
04:02so did you ever actually go anywhere
04:03with house hacking um I was close so
04:06back when I was living in Cleveland Ohio
04:08I was looking at properties I figured
04:10out kind of where I wanted a house act
04:12but I ended up switching and going to a
04:15different College I was went to the Ohio
04:16State University and then my next
04:18Journey was going to be to house hack
04:20there but I didn't actually end up doing
04:22it so Josh it seems like obviously
04:24you're a little bit uh entrepreneurial
04:26here like before we get into the real
04:28estate stuff because I think even at the
04:33um having ten thousand dollars in your
04:34bank account is is a hard thing right A
04:37lot of people are like how can I get 10
04:38000 bucks so can you tell us a little
04:40bit about how you even got the ten
04:42thousand bucks for did you just have a
04:43ton of side hustles or were you working
04:45a job sure so I was working you know I
04:48was doing a lot of side hustles I used
04:49to make duct tape wallets when I was in
04:51like middle school and try to sell those
04:53and that was kind of fun and
04:56um the next thing I was really
04:57interested in was like sneakers the
05:00whole sneaker culture reselling because
05:02I was a pretty big basketball player
05:04um and I kind of was exposed to that
05:06industry so I was going to different
05:08sneaker events I would um rent out a
05:11table bring as much shoes as I could fit
05:13in my couple bags and try to sell them
05:15and basically just kept those profits
05:17over the years nice what what did a duct
05:20tape wallet run you back in the day oh
05:22man it was like five dollars to sell I
05:24mean it was a lot of work for five
05:26dollars oh I see because I was gonna say
05:27you know roll of uh well toilet paper
05:30sorry duct tape gonna cost you like
05:32three four bucks you know so yeah if you
05:34can make see Josh this is my problem Rob
05:36always forgets to include the value of
05:38time he only looks at the money when he
05:40calculates Roi as you can see that's
05:41true but you had a lot of time sure yeah
05:43I was doing it in class and on the bus
05:48this reminds me of me I wish I'd had
05:51something I've always had a very
05:52difficult time paying attention in class
05:55and school any time that I have to
05:56follow somebody else's Pace if they're
05:58talking too slow I'm like ah my brain
06:00just wanders I can't sit there so they
06:02didn't have fidget Spinners or what's
06:04the other things that everybody plays
06:05with now Rob fidget cubes fidget cubes
06:08there you go right what did we have in
06:10my day we had like we had stupid pencils
06:12with different colored lead that you
06:13could like click the different colors
06:15and play with uh or we had these
06:17bracelets that you could snap on your
06:19wrists and they would like curl up in a
06:21ball I doubt either of you guys ever saw
06:22those things but oh yeah you still have
06:24that bright pink one right that you
06:25always play play with during the podcast
06:27yeah and when I work out that's like my
06:29my lucky workout wristband bright pink
06:33absolutely Pinker pockets for the win so
06:36you you're an entrepreneurial at heart
06:38Josh which I love because I know this is
06:40where you learn the fundamentals of that
06:41later translated into real estate
06:43investing we interviewed Ryan Pineda on
06:44our podcast years ago and he talked
06:46about how he flipped couches he would
06:48buy couches fix him up and flip him
06:50which he then later turned into a house
06:52flipping business and now he's built an
06:54entire Empire which I like to think we
06:56are basically the ones that launched him
06:57into the atmosphere but Ryan took that
07:00atmospheric launch and built something
07:01pretty cool out of it so I'm curious if
07:03you could share what lessons do you
07:04think you learned with some of these
07:06early Endeavors that translated into
07:09um I guess in the sneaker culture you
07:12would see some of these really cool
07:13shoes right that like athletes were
07:16wearing or celebrities and maybe you'd
07:18flip a few Pairs and make like 500 bucks
07:20and you want to take that profit and
07:22immediately buy your own pair to keep
07:24and wear and my mindset was I'd rather
07:27save that money and maybe put it towards
07:29like an asset I learned the idea of
07:31assets when I was younger where you can
07:33actually use money to make more money I
07:36didn't really understand which assets to
07:38use at the time I just knew that concept
07:40and I was like it's got to be a better
07:42way of spending my 500 profit so I think
07:44that's one thing that I learned for sure
07:46when I was younger by the way that's not
07:47the one worst mindset to have where you
07:49say I really want this thing so I'm
07:51going to figure out how to make money
07:53with this thing that I want sell it make
07:55a profit and then get the thing that I
07:57want that's real estate in a nutshell
07:58right you want to acquire property so
08:00you buy property you flip it you take
08:02the profits and what do you do you go
08:04and you usually if you're a good real
08:05estate investor you go and you dump it
08:07back into another property or you buy a
08:09property and have other people pay for
08:10it long-term rentals or short-term
08:13rentals right so I think it's the the
08:14mindset is not incorrect it's just
08:17really impressive that you found out at
08:19a very young age that instead of buying
08:20sneakers you should put it into
08:22something that's going to make you more
08:25um I was always trying to find more ways
08:27to be more productive with my money like
08:29I learned early on like for certain
08:33shoes that have to go to the store and
08:34wait multiple hours I was thinking like
08:36this isn't very scalable if I want to
08:38try to get like 20 pairs of shoes
08:39because I can't be simultaneously at 20
08:42places at the same time I have to learn
08:43how to rely on other people different
08:45things like that helped so you know I
08:47always thought because I tried different
08:49Endeavors too I worked at restaurants
08:50and I learned how to sell wine and steak
08:53and then I tried to get a job selling
08:55cars at one point that didn't work out
08:57but ultimately I think a lot of us see
08:58real estate as the Pinnacle we're trying
09:00to get to we want to sell the most
09:02expensive thing we can getting a real
09:04estate license is not something you need
09:05this four-year degree I wish it was I'd
09:07feel much better if agents had to go get
09:09a two or four year degree to so house is
09:11because there'd be less crappy ones out
09:13there and we'll get into your career
09:14there too Josh but was it the same thing
09:16for you that real estate was just a
09:17natural progression of the best thing
09:19that you could sell yeah I think so it
09:21seemed like I had to put
09:24almost like now they look back on it the
09:26amount of time it takes for me to sell
09:27one house was almost the same amount of
09:29time and energy it took for me to sell
09:31one or two pairs of shoes in some ways
09:35and your hands aren't sore from creating
09:37these duct tape wallets all the time yes
09:39easier that too you let DocuSign do all
09:42the work less paper cuts all right so
09:44let's go back in time you're in college
09:46I go back in time for 22 years old you
09:48might still be in college
09:50where does this interest in real estate
09:52start to come into play how and where
09:54did you start to dig in I mean I just
09:56was Googling you know what do I do with
09:58ten thousand or twenty thousand dollars
10:00how do I invest it and
10:02um I can't remember if it was Bigger
10:04Pockets right away but I saw like house
10:06hack and I was like maybe I could buy
10:09like a property you know on the college
10:12campus I was going to live in one unit
10:14write everything else out
10:16um and that slowly led me to
10:19understand like oh man like if I become
10:21an agent I could figure out a way to
10:23find like potentially the best deals so
10:26that was my goal so you didn't buy a
10:28house to house act but you got exposed
10:30to real estate it made sense to you and
10:31you thought you know what I'll just get
10:32my license and I'll help other people do
10:34the same thing yep all right so did you
10:36just look up how to get a real estate
10:37license and just start studying and do
10:39that or did you have a mentor that kind
10:41um the first thing was like diving into
10:43the Bigger Pockets forms like really
10:45this podcast might sound like a bigger
10:48pot like Bigger Pockets like promotion
10:50but in all reality like a ton of my
10:52growth really like stemmed from that
10:55Foundation but that was that was one of
10:56the first things and then I also got
10:58latched on to a guy named Remington
11:00Lyman who is also an agent
11:03um he works at reefco real estate he
11:04owns brokerage I work at but I um you
11:08know I messaged him I was like
11:09explaining my situation he hopped on a
11:12zoom call with me explained you know the
11:15benefits of house hacking like maybe if
11:18you wanted to become a agent here or
11:20come here we can teach you how to find
11:21off Market deals we can help you build
11:23those systems and the next thing you
11:25know I was work as hard as I can to get
11:27my license yeah so you're getting a
11:29license and obviously you know as you
11:30establish your real estate agent
11:32business uh that's going to take some
11:35time to get that deal flow and actually
11:36closing properties and making money were
11:39you working any other jobs while you
11:41were doing this or were you all in at
11:43the very beginning in the very beginning
11:44I was still taking classes I was
11:47studying computer science and then I was
11:49um driving for doordash like 20 to 30
11:52hours a week and then at any moment I
11:54could I was trying to figure out I was
11:56trying to just cold call that was my
11:58main source of finding deals in the
11:59beginning my plan was cold call find a
12:02deal or at least get somebody to talk to
12:04me about their property get some details
12:07bring it to one of the agents that I was
12:10and they would kind of break down the
12:12deal explain like oh maybe an investor
12:14would like this or get some
12:16clarification on what the rents are the
12:18lease terms are and it started there did
12:21you ever have to like say were you ever
12:22deep in conversation you're like give me
12:24one second and then you'd pause to take
12:25a photo of the the doordash delivery to
12:28upload in the app and then get back on
12:29the call uh maybe I was trying not to do
12:33the delivery while calling to I was
12:36doing when I was driving but not
12:37necessarily oh I admit mid delivery yeah
12:39yeah so what kind of money uh what kind
12:41of money does a door Dasher make if
12:43you're making if you're working 20 to 30
12:44hours a week is that pretty good income
12:47can you give us a little frame of
12:48reference there yeah I mean I was around
12:51five to eight hundred dollars per week I
12:54think working at that amount of hours
12:56it's yeah that's pretty good yeah that's
12:58solid especially if you're in college
13:00and you're kind of doing doing all that
13:02so your doordash and making pretty good
13:03money for where you are in life and your
13:05cold calling what was that first deal
13:07like when you actually landed a lead
13:09that that became a transaction that paid
13:11you out definitely so I was cold calling
13:13four units and what I would call like an
13:17um I just found a guy that happened to
13:18be motivated that day he was pretty easy
13:21to talk with I presented it to the agent
13:23I was working with he's like oh yeah we
13:25could sell this deal so
13:27um I wrote up an email which is the way
13:29that we kind of Market our deals then he
13:32presented it to his investors somebody
13:34ended up taking the deal on
13:36um and that took about a month to close
13:38as most properties do and I basically
13:40made what I would make in like a month
13:42and a half from Nord ash from that and I
13:44was pretty psyched because I thought
13:47I just need to knock out a few more of
13:49these and I could end up making this
13:51produce more income than just doordash
13:54so you started mapping out like oh man
13:56if I did this three times I'll make this
13:58amount of money oh yeah definitely and
14:00then another thing is like if you get
14:02your license you end up make making a
14:05much bigger cut because you can actually
14:07represent either the seller or the buyer
14:09depends on the situation so I was making
14:11like a referral fee so as soon as that
14:13deal closed I was like all right I got
14:15to get my license let's start studying
14:17right now and try to knock it out yeah
14:18so was that more like a I don't know
14:20like a wholesale deal where you you're
14:22calling you find someone you get a
14:25property off Market they're like yeah
14:26I'm willing to sell it and then you're
14:27basically past are you then passing that
14:29off to Realtors to sell or were you
14:31selling it to an investor and taking
14:33like a small fee for that um I worked
14:35under a realtor named Abe
14:37um so basically I just wrote all the
14:39details of the property gave to him and
14:42then he found an investor that was
14:44interested in The Brokerage that I was
14:46working at so it's it's kind of like a
14:49hybrid form of wholesaling we just don't
14:52actually put the deals under contract we
14:53just present the information to the
14:55potential investors makes sense so you
14:57started sort of uh I guess you closed
14:59this deal you're like oh my gosh I just
15:01got to do this this many times you start
15:03getting more into this how are you able
15:05to balance everything from you know
15:07getting your license to finishing
15:09College to I assume still maybe working
15:11some door Dash here and there I mean at
15:13that point basically I was like I'm just
15:15going to use all of my time outside of
15:17school to dedicate towards you know
15:20still maintaining a cold calling
15:21schedule which I think is really
15:23important and then getting my license so
15:25I got my license in about two months our
15:28cold call hour is always nine to five or
15:30were you like getting creative and
15:32calling from like 5 P.M to 9 p.m too uh
15:349 to 11 was like my cold cold calls the
15:38people I never really talked to
15:40um and then like I would use one to five
15:42as a lot of follow-ups or new cool calls
15:46but it seemed like you know if you
15:48picked if you hit somebody in the
15:50morning when they're driving oh yeah
15:51yeah call me back later then I just hit
15:53him later and usually that's a that
15:56ended up being a pretty decent converter
15:57David do you consider yourself much of a
15:59like a very good cold caller uh I've
16:01never heard this side of you before so
16:03I'm curious I did it in the beginning of
16:05my career when I had to I didn't love it
16:08uh so I didn't do it a lot I you're sort
16:12of like when you're trying to find deals
16:13you there's most people fall into one of
16:15two categories there's the direct
16:17contact person which is a cold caller or
16:19there's the content tank Creator which
16:21sort of gets people coming to them like
16:23most people usually take one of those to
16:24pass and because I ended up as a podcast
16:26host and an author I kind of went the
16:28content creation side as opposed to the
16:30direct cold call Josh I mean you you did
16:34what you could do because you didn't
16:35have a huge podcast behind you to spread
16:37the word I'm curious because you
16:39mentioned something you type in this
16:41like wholesale hybrid model can you give
16:43us a little more detail of what you mean
16:44by how you were making money on these
16:46deals sure so the seller was like Hey I
16:50want 450 for this for you for this four
16:52unit and generally wholesalers would
16:55write up a contract get it under
16:56contract and then sell that contract for
16:59a fee so the way that we do it as at The
17:03Brokerage I work at iriefko we don't um
17:06put it under contract we just take all
17:08the details of the deal write it in like
17:10an email and then present that to our
17:12investors and then if one of our
17:14investors likes it or they want to write
17:16an offer we just write up the offer and
17:18present it directly to the seller and
17:20how are you being compensated are you
17:21getting a listing agreement from the
17:23seller when you bring the buyer to them
17:25and there's a commission in there for
17:26you guys we don't actually use listening
17:28agreements no so in that during that
17:30time frame when I didn't have my license
17:33um I was getting a fourth of the
17:36for the agent I was working under so he
17:39got three percent then the the agent
17:41that brought the buyer got three percent
17:42and then I I ended up with 25 of the
17:45three percent that's how we did it how
17:48were you guys getting commissions if
17:49there was no listening agreement um it's
17:51still an executable contract with
17:52Commissions in the agreement so it's
17:54going to say seller to pay six percent
17:56to our Brokers I gotcha yeah so you
17:59would bring a buyer and in the offer it
18:01would have who was getting paid as far
18:03as the agents are concerned correct I
18:05see so rather than putting getting a
18:07house putting it on the market letting
18:08everybody see it trying to get offers
18:10negotiating the highest one you guys
18:12just cut to the Chase and you said hey I
18:14got a buyer that will pay this much for
18:15your house if you want to take the deal
18:17here's how much it's going to cost you
18:18here's what the net to you is going to
18:19be and you guys were running a little
18:21more efficiently yeah I think it allows
18:23us to kind of take advantage of those
18:24leads that aren't as motivated to sign a
18:27listing agreement because there's a lot
18:28of people that fall in that category I
18:29think and this is also a form of
18:31off-market deal so other buyers didn't
18:33have access to the same stuff that you
18:34guys were bringing them correct yeah
18:36yeah but Josh what would stop a let's
18:38say you're presenting this property
18:40right you because you don't have a
18:41contractor you don't have a listing
18:43agreement what would stop a like an
18:45investor if you say hey investor I've
18:46got this cool property here's the
18:48address what would stop them from just
18:50going over you and going straight to the
18:52to the seller and just transacting the
18:54the deal themselves that's a good
18:56question so we have an off-market
18:57agreement that we present to everybody
18:59prider setting deals that roughly States
19:01if you go after a deal that we bring you
19:04you have to use us as your agent so
19:09um in the beginning when they haven't
19:10signed it yet we'll send people like
19:13deep descriptions of all the deals it
19:15won't have the address usually won't
19:17have pictures but then if they're like
19:19hey I really like the concept of the
19:21steel we'll set on the agreement and
19:23then they sign it we're good to go so
19:25it's a form of a buyer representation
19:26agreement you don't have to people don't
19:28realize you don't have to set it up for
19:30every house that I show you or every
19:32house you could buy you can say for this
19:34address I have to be your agent but they
19:37could use a different buyer's agent for
19:38different properties they get brought to
19:40them that actually makes sense and I see
19:41now why you're calling it a wholesale
19:43hybrid because wholesalers do it that
19:44way they say here's a 3-2 with 1800
19:46square feet in this ZIP code that would
19:48rent for this much money that's all that
19:50people get to start with until they want
19:52to analyze it later so you kind of use
19:53that marketing approach paired with real
19:56estate contracts to protect each party
19:58there so what happened next like how did
20:02you get to the point that you were
20:03making more from these commissions than
20:05you were making from your door dashing
20:09um that first check came in that was
20:10about a month and a half's worth of
20:13I had a lot of warm leads people that
20:16weren't ready to sell right away but
20:18they're getting close and I was
20:20basically like I'm gonna take the next
20:21six weeks I'm gonna go really hard at
20:25um and at that point I started you know
20:27I was spending two to three times more
20:29hours per week on this than I was before
20:33um then I got my license then I started
20:34putting a whole bunch of deals in
20:36contracts and when you say you're
20:37putting two or three more hours do you
20:38mean just in the follow-up sorry I'm
20:40about like two to three times more hours
20:42per week than I was before because I was
20:45like hey no more doordash for now we'll
20:47just work on real estate got it and was
20:49that all that time on lead generation
20:52was it following up with because you
20:54said you had a large pool of warm leads
20:56so these are people that you know
20:57they're interested they're not ready to
20:59pull the trigger necessarily but if you
21:01kind of keep approaching them coming
21:02back to them eventually they convert
21:04right yeah eventually yeah all right
21:06were there any key learning points
21:08during this difficult time like what was
21:11going on in the Market at this time and
21:13was it still red hot were things slowing
21:15down where are we in time this is the
21:17beginning of uh 22 so it was still hot
21:22definitely it was cooling off a little
21:26um but you know every deal that was
21:30decent that hit the market would have
21:31multiple offers the listing agent would
21:33be getting hounded so
21:36it was definitely tough
21:38um at this time I also tried to make a
21:40bigger presence on Bigger Pockets so I
21:42was posting a lot I think I cranked out
21:45a thousand posts in about three months
21:48so you you were posting uh okay so
21:50that's 90 days so you were posting 10
21:53times to 12 times a day on the Bigger
21:56Pockets forums yep yeah that was that
21:59was my schedule I believe from 5 30 to 6
22:0230 every morning I had to spend an hour
22:03in Bigger Pockets by posting or at least
22:06reading content and trying to provide
22:09value what kind of like you were you
22:11were making posts and actually putting
22:12content out there what's an example of
22:13something you'd throw out into the uh
22:15the Bigger Pockets Universe
22:18um I mean most of it was just comments
22:20on people's questions I would try to
22:21answer them the best that I could I
22:23would talk about the Ohio market the
22:25advantages to investing here I would
22:28talk about kind of like my journey and
22:29how I'm learning did you did you feel
22:31like people start to know who you were
22:33like did you get any relationships from
22:35doing that oh yeah I was getting people
22:37reaching out to me in Bigger Pockets
22:39they're like hey like I see you know a
22:41little bit about this Market or real
22:43estate investing in general
22:45um and at that point I was trying to
22:47manage those lead leads and then I was
22:49also reaching out to other people so I
22:51set up like a calendly link I was like
22:53Hey set up a 15-minute call with me
22:55we'll figure out you know what you're
22:57looking for and how I can help so when
23:00the market was hot and listening agents
23:02were getting multiple offers how are you
23:04getting sellers to agree to sell their
23:06properties through you to a specific
23:08buyer rather than putting it out there
23:10for everyone to see so I think the fact
23:12that we weren't using let's say
23:13agreements they were a lot calmer they
23:16didn't feel like you were trying to push
23:18them to sell it was more so like like I
23:21was like hey man like
23:22you know what what do you need for this
23:25property like what number would you not
23:27deny and then we would if that number
23:28made decent sense we'd spend the time to
23:31write it up and Market it out and they
23:33weren't having to fix their house up I'm
23:34assuming a lot of these were probably
23:36sold with tenants already inside yeah
23:37tenants inside we get the the rents the
23:39lease terms they would almost always be
23:41as is yep so and then what were you
23:44doing to find actual properties were
23:46just pulling lists was this you'd be
23:48driving around and just look and see a
23:49multi-unit property you thought an
23:50investor would like I was pulling lists
23:52from prop stream for the most part and
23:54targeting different areas I was trying
23:56to pull a list of people that hadn't
23:58sold in the last year two years or that
24:01bought it for a really low price
24:03compared to what it was potentially
24:04worth now because I felt like those
24:06could have been more motivated people
24:08all right so you're in this this world
24:10right where you're figuring out your
24:12systems I see that you've developed
24:14habits you had a schedule
24:16um you're now an agent give us an idea
24:18how long did it take from when you got
24:19your license to the first deal that you
24:22closed as an agent how long did that
24:24take that was December to March so
24:27basically three months and I had my
24:31first 11 deals fought a contract it was
24:35um I felt like everything was falling
24:37out for the most unique reasons
24:40um but it was a very you know it was a
24:43big learning experience for me because I
24:45was making mistakes for sure man the 11
24:48deals that is brutal David is that
24:50normal at all I know you run a team of
24:52the David Green Team uh the most elite
24:54real estate agents out there is it
24:56normal for 11 uh uh you know deals to
24:59just fall out for from like a first time
25:01realtor no but as I'm listening to
25:04Josh's strategy here that starts to make
25:06sense this is more of a volume based
25:07approach yes sellers that are not
25:09motivated he has buyers that they don't
25:11have a relationship with everyone's a
25:13bit of a Merchant Marine here like it's
25:15just pure numbers if you can get me a
25:17deal that gets me the cash on cash
25:19return that I want I'll go forward or if
25:22you can get me this number that was
25:23probably higher than what they thought
25:24the property was worth so you've got
25:26sellers that probably want to sell for
25:29more than a buyer would want to pay you
25:31get buyers that are looking for the deal
25:33the century every time you have these
25:35expectations that are off it's easier
25:37for a deal to fall apart so I'm assuming
25:39Josh you just had to make up for that
25:41with volume you were probably just a
25:42Workhorse that was constantly looking
25:44for sellers looking for buyers matching
25:45them together moving on to the next
25:46thing definitely yes that's I haven't
25:49really heard a summary like that before
25:51that's a very good way of explaining it
25:53I was basically just taking two low
25:58two people that had a low chance of
25:59closing and putting them together when
26:01that happens you get a really low chance
26:02of closing David is the king of this by
26:04the way he is the king of summarizing
26:06something so concisely and succinct I
26:08remember we had uh let's see who was it
26:10Chris Voss Chris Voss came on and he
26:12gave like a very like a philosophical
26:14thing and then David comes in he's like
26:16so basically based on this and this it's
26:18this right and Chris Ross was like yeah
26:20it is that no one's ever told me that
26:22before and I was like well it was like
26:24uh watching you know who painted the
26:26Mona Lisa the painter of the Mona Lisa
26:29paint the Mona Lisa but in the real
26:31estate World Michelangelo shoot I'm
26:33about to look so dumb everyone in the
26:34comments are gonna be like no it wasn't
26:35Michelangelo well the key is you have to
26:37do that with Chris Voss because you
26:39don't want to end up in a negotiation
26:40with him oh no I remember who it was it
26:42was it was also the Blue Angels guy he
26:44was like had this whole story about how
26:46he had the how he made a mistake in the
26:48Jet and then he was like can you guess
26:51the reason that I made that mistake and
26:53then uh David was like well it was
26:55probably because he got too comfortable
26:56and blah blah and he was like I've told
26:58that story 1100 times and no one has
27:01ever said that to me yeah that's exactly
27:03why he was stunned so anyways I always
27:05like to point that out when I see it
27:06well thank you quick tip here if you
27:08would like to be able to do the same
27:09thing stop looking for patterns to
27:12follow or as far as like a strategy give
27:14me a blueprint I just want to go do
27:15something and start asking questions
27:16like well why did that work or why did
27:19that not work and then this stuff sort
27:20of jumps out so like just from that
27:22information alone I can tell certain
27:24things about Josh she's a Workhorse he
27:26does not get emotionally attached to any
27:28of these deals when he put something in
27:30contract he doesn't spend the money
27:31before it closes he's just like that's a
27:33metric that goes on a spreadsheet I am
27:35now back to going to work he focuses on
27:37what we call the lead measures not the
27:39lag measures so what is it I can do
27:41right now as opposed to measuring
27:43something that already happened this is
27:45all really good advice for everyone you
27:46see this with real estate agents where
27:48they work really hard they put a deal in
27:50contract they get emotionally excited
27:52they celebrate they go out drinking with
27:54their friends they start thinking about
27:55what they're going to spend the money on
27:56they're calculating their Commission
27:58right real estate agents can calculate
28:00three percent of anything which is funny
28:02because we don't all get three percent
28:03hardly ever anymore but they get super
28:06attached to the deal and then when
28:07something goes wrong the appraisal comes
28:09in low the inspection report is bad the
28:12can't get the loan whatever it is they
28:14get really discouraged and then they go
28:16drinking again which is why most real
28:17estate agents all become alcoholics
28:19because they're drinking when they're
28:20excited and they're drinking when
28:21they're bummed out they're just drinking
28:22all the time I think Josh's approach is
28:25much better because you're sort of
28:26approaching the business of selling
28:27homes like a real estate investor would
28:29think where you're just letting the
28:31numbers make the decisions am I off with
28:32that you're right yeah it's just just
28:34keep put them in contract figure out
28:37what mistake I made there and what can I
28:40change in my systems and my approach to
28:42potentially avoid that in the future
28:43okay so let me ask you what are some of
28:45the key mistakes that you can share that
28:47you learned when you put these deals
28:49together that made the deals fall apart
28:50so the first thing would be not vetting
28:52the sellers sometimes they wouldn't I
28:55mean kind of funny they didn't even
28:56really know what they owned they would
28:58say like oh there's three but these are
29:00two three bedroom units and then you get
29:02them a contract the inspector goes there
29:04and they're like dude there's only two
29:05bedrooms and it's like oh you can't do
29:07anything about that you can't just build
29:09a new bedroom so that's one thing
29:12um another thing is I learned about you
29:14know making sure the tenants are paying
29:16and the tenants are like paying on time
29:17that's very important so like getting
29:19those uh estoppable agreements
29:21potentially in the beginning because
29:23that ended up causing issues at the end
29:26before closing multiple times
29:29and then not necessarily betting via or
29:32vetting buyers very well so like one
29:35example that's kind of funny is I had a
29:37guy trying to buy two properties for six
29:40hundred thousand dollars uh we fell like
29:43two weeks prior to close because it
29:44couldn't get financing and I learned
29:46that he had like less than eight grand
29:47in his less than ten thousand dollars in
29:49his bank and he was trying to put 25
29:52down and I'm like did we even do the
29:55math here this is so funny because I
29:57could just totally see how this method
30:00would attract those problems right this
30:02is like trying to find a date on
30:04craigslist you're like it's about it's a
30:06numbers game baby you just gotta keep
30:08lining them up because you're gonna get
30:10these people that are looking for a deal
30:11that's unrealistic and let the eight
30:13thousand dollar guy I bet you what he
30:15was doing was he was he brought this
30:16deal to other people and he was trying
30:18to get their money on this deal that had
30:20a high cash on cash return number
30:22because he listens to the podcast and he
30:24hears Brandon Turner say when you have a
30:26great deal you can find the money so
30:28they he didn't tell you that he's like
30:30yeah I'll buy it and then he's running
30:31around telling everyone he can like
30:33what's the what's the raising private
30:35Capital script I'm supposed to use he's
30:36trying to get someone to come in on the
30:38deal he ran out of time and then he has
30:40to just back out of it and you Josh you
30:43get to sort of work your way through all
30:45of these really incredible scenarios
30:48that normally a real estate agent like
30:50us we're like oh let's see your proof of
30:51funds oh you have eight thousand dollars
30:53no we're not gonna go show you homes you
30:55didn't get to do that so did you put a
30:57system together do you have like a
30:58checklist now do you have a screening
31:00process for both the buyers and the
31:01sellers definitely yeah I try to write
31:03procedures for as many things as I can
31:05I'll hop on a phone call immediately
31:07with the people as soon as I meet them a
31:09little 15-minute meeting make sure like
31:11hey like are you pre-approved if not I
31:14have these lenders that I recommend
31:15they're great in this area you want to
31:17connect with them I try to figure out
31:19their timeline you know when you got
31:21when you look into uh lock down a deal
31:24another thing I think is really
31:25important for working with investors is
31:27what is your criteria
31:30um right a lot of investors don't
31:34um and agents can end up wasting time
31:36because they don't really know what the
31:38people are looking for yeah I think
31:39that's a common complaint investors have
31:42I told them what I want the agent didn't
31:44listen to me that's one way to mess it
31:46up the other way is the agent doesn't
31:47even think to ask what do you want you
31:49know what's funny in our world
31:51we'll say someone will say they want a
31:53deal and we don't even think to ask them
31:55to Define what they mean by deal some
31:58people mean a really high cash on cash
32:00return some people mean a property in
32:03the best area some people mean something
32:05at significantly less than arv some
32:08people mean just any any multi-unit
32:10property it can mean so many different
32:11things to people about a deal without
32:14asking what that means it's very hard to
32:17make sure that what you're bringing them
32:18is going to land in your experience what
32:21are most of your investor clients
32:22looking for in what they call a deal
32:23around 60 of the people are trying to
32:27get into real estate they have kids they
32:29have a full-time job they're not trying
32:31to you know quit everything and just do
32:33real estate so they want properties that
32:35are TurnKey or close to they're occupied
32:39they're producing a good sense of cash
32:41flow and they can buy a couple of those
32:43a year and be happy with a good
32:45portfolio when they're done and then the
32:47other 40 percent of people I would say
32:48are looking to do value-add the Burr
32:51strategy creative financing when it
32:54comes up self-management
32:57um anything that's a little bit more
32:59involved and requires a lot more of your
33:01time that's for the other people so
33:03these are the Financial Freedom group
33:05that you're basically working with
33:06they're trying to get up enough cash so
33:07they can quit their job yeah yeah that's
33:09I have a lot of calls where the first
33:11two minutes it's like yeah I want to
33:12retire in five years
33:14it's like you can do it
33:17just hard let me show you how to sell
33:19some duct tape wallets so you mentioned
33:22some earlier Josh uh term estoppel do
33:25you think you can just give us a quick
33:26definition of that what that is because
33:28it seemed like that was something that
33:29was popping up in a lot of these deals
33:31that that fell out yeah
33:33um it's basically a summary of what the
33:38um what their lease terms are and
33:41showing that they have been paying I
33:44don't actually use to stop all
33:45agreements that's just like a term that
33:47I thought most people knew but it's
33:49basically I want to see the rent history
33:50like sometimes the seller will just show
33:52me bank account to show that deposits
33:55are coming in or an actual like summary
33:57or an owner statement from the property
33:59management company something showing
34:01that the cash flow is real it's not fake
34:05so you close this first deal 11 deals
34:08right fall through you close your first
34:10deal tell us a little bit about the
34:12actual numbers on that first one you
34:14said that it was I guess the same as
34:16working a month and a half in the
34:18doordash world right yeah so it was a
34:24um there was three percent paid to the
34:27agent that I was working under so he got
34:29nine thousand dollars or sorry twelve
34:31thousand dollars and then I got a
34:32quarter of that so I got around like
34:35three grand nice how did that feel that
34:37was really cool I that was the biggest
34:38truck I think I've ever gotten and I was
34:40like a little intimidated but I was like
34:42we don't spend this now this is this is
34:45like our life for the next like two
34:47months oh yeah that's a lot of ramen
34:49noodles right there especially at the
34:50beginning when you're grinding so much
34:51so let's fast forward a little bit
34:53because I know you're grinding it out on
34:55the you know on the agent side tell us
34:57about your your actual first deal
34:59because David mentioned at the beginning
35:00of the show that you bought 10 deals
35:02which I think was about 1.5 million
35:03dollars in total for for the portfolio
35:05so how did you actually get into the
35:08investing side of things definitely so I
35:10started to sell a lot of properties
35:13um by month six I had scaled my business
35:16up to like fifty thousand dollars a
35:18month in commission so I had actually
35:21had cash reserves and I found
35:24um these two duplexes listed by the same
35:26agent they had been sitting on the
35:28market for a few months so I called them
35:31um and he was like yeah the owner has
35:34short-term debt on it he really needs to
35:36sell it they're getting ready to call
35:39um and they were basically willing to
35:40sell them at like a 30 discount and I
35:43ran my numbers and I was like this could
35:45make for a great Burr like both of them
35:47you could be all in right around 70 to
35:5075 arv and when you pull your money out
35:53it's still going to produce a pretty
35:54solid cash flow so I had to really trust
35:57my numbers but I decided to go after one
35:59of them okay so wow that's a
36:03fifty thousand dollars a month that's
36:05what you were making how old were you
36:07when you when you reached that number uh
36:0921 21 David does that make you feel like
36:12I feel so lazy as a like as a 21 year
36:15old when I was but I was not doing that
36:17I was like trying to make I don't know
36:20man that's crazy congratulations that is
36:23so cool I was making less than that in a
36:25year and that was still more money than
36:26everybody else that I knew dude that's
36:29crazy so all of that the fifty thousand
36:31dollars a month obviously that's gonna
36:33lead into your investment strategy but
36:35that just came from hunkering down on
36:37your agent business growing those
36:39systems developing your processes and
36:41then you like grew it into just 50k a
36:44month that's insane yeah and by month
36:47eight I actually got it to about 100K so
36:50ever since then I'm right around 100 000
36:53um I've been using I've been leveraging
36:55va's uh for a lot of procedures I try to
36:58do I try to delegate as many tasks as I
37:01can as a realtor try not to I don't know
37:04spend all day writing contracts as an
37:06example because I can take like 30
37:07minutes on average and I'm a lot of days
37:10I'm writing between 8 and 10 offers
37:13um that would be my entire day so
37:16um can I come work for you please can
37:18David and I come work come work for you
37:20uh okay so you have no deals in the
37:22first three months and you start to fire
37:25on all cylinders by June of 2022 you
37:28decide to get your first investment
37:29which is a burr it sounds like or some
37:31kind of rehab how did that go was that
37:33like a whole new set of skills that you
37:35had to learn after already being so good
37:37at the real estate side the the Realty
37:39side yeah I mean I had never done any
37:41rehabs I didn't really know how to price
37:43things out very well so one of these
37:46contractors that I had been working with
37:47for my clients I was like hey can you
37:49walk this for me give me a bid it gave
37:52me a bid the numbers made sense and
37:55another thing was is I could only get
37:56the price where it made sense if the
38:00owner was able to sell both of them so I
38:02was able to another investor to buy the
38:05other one at the same time we lined them
38:08um I used hard money for mine they
38:11lended up to 90 of the project cost
38:14which which is your purchase price plus
38:16your rehab or seventy percent of the arv
38:19whichever number is less well it sounds
38:21like we're already in the deal deep tag
38:23because this is what we're going to talk
38:24about so let's go ahead and make this
38:33at this segment of the show we dive deep
38:36into a particular deal that our guest
38:37has done and get the juicy Deets so
38:40first question what kind of property is
38:42this Josh it's a duplex two bedroom
38:44units are you sure they're two bedroom
38:46units do you know what you have are you
38:48one of those sellers that claims that
38:49he's got more bedrooms than he does I
38:51knew luckily this time I knew all right
38:53we'll take your word and how'd you find
38:55it it was on the market
38:57um it had been on there for a few months
38:59and I called the agent and he was like
39:02we have to you know to sell the current
39:04owner has short-term debt on it they're
39:06getting ready to call it he really needs
39:08to sell if you can sell this one and
39:11another one you can get around a 30
39:15so my job was to try to sell one of them
39:19because in my current situation I was
39:21only comfortable with taking down one
39:22deal I didn't want to start with two
39:24forty thousand dollar rehabs okay how
39:26much was this property it was 85 000
39:30um and the rehab estimation was right
39:33around like thirty thousand dollars for
39:35the one that I took down
39:37and the arv that I had projected based
39:40on sales comps was right around 155
39:43000. and how did you negotiate it I mean
39:46the agent basically told me that if you
39:48can close quick you cannot have many
39:50contingencies you can get it at this
39:51price so then I counted around like 10
39:54000 lower and then we read we met about
39:56halfway in the middle and got the deal
39:58done and how did you end up funding it
40:01um I use hard money so uh I had to put
40:04down around like 10 and then I applied
40:07my commission because I was representing
40:08myself as part of my down payment so I
40:11was only really out of pocket like ten
40:12thousand dollars and what you end up
40:14ultimately doing with this property so I
40:16renovated it it took a little bit lower
40:18than expected as probably the vast
40:20majority of projects do I learned a lot
40:24as soon as I was done I went to the bank
40:26I refinanced it I got almost all my
40:30money at back out and now I run it as a
40:33rental okay so that was the outcome
40:35there tell me what lessons did you learn
40:39you know I was really scared of debt
40:43I really didn't have any debt prior to
40:46um I was definitely scared of short-term
40:47debt because the hard money is like
40:49they're knocking at your door in six
40:51months like it's due you need the
40:53property you have to either have to pay
40:54it off you have to refinance it or you
40:56have to sell it so I was definitely
40:57intimidated taking on a property that
41:00currently wasn't livable and needed
41:02around 30 grand to be livable so
41:05um those are the things that I was
41:07scared of but I learned from the
41:09investors and mentors around me that you
41:12really need to trust your numbers like
41:14in in any instance when evaluating a
41:16deal because you know that's what you
41:19can rely on especially when you feel
41:21uncertain so Josh let me I guess I'm
41:24trying to understand because I know you
41:25said you use hard money and you're
41:26really nervous about I guess getting
41:29into this property and that you needed
41:31thirty thousand dollars of work but if
41:33I'm remembering correctly was were you
41:34making fifty thousand dollars a month at
41:38so what was the real concern here
41:41because it seems like you know you
41:43probably could have covered expenses
41:44pretty easily yeah I mean the property
41:46was also not in a city that I was living
41:48in so I was kind of mimicking the
41:50experience of an out-of-state investor
41:52because I bought it sight unseen
41:55um and I was managing the entire project
41:57from remote so I learned that so how do
42:00you feel now though like do you feel
42:02looking back were you like oh it
42:04actually wasn't that bad or do you still
42:06have some of those same reservations
42:07doing the out-of-state stuff I mean
42:09after the first one it's I feel way
42:11better I feel a lot more confident I can
42:13rely on my team I can rely on the
42:15knowledge that I bring to the table by
42:17understanding sales comparables and
42:19things like that I've got two questions
42:21one have you read long distance real
42:23estate investing yes I think it was the
42:24first book I read okay good because
42:26that's the first book I wrote so we have
42:27something in common number two if I were
42:30to make a revised version of this book
42:32based on your experience doing this deal
42:35out of state what would you include or
42:37what what would you tell me to include
42:42I read it a while ago so maybe this was
42:44in there but bro you're 22 years old how
42:46long ago could a while I don't know two
42:52I would rely on multiple project
42:54managers right those that can take the
42:57form of an agent just popping in every
43:00once in a while that can be your
43:01property manager that is responsible for
43:04tenant relations or that can just be
43:06completely different contractor that
43:08comes in with his own third party
43:09opinion about how your Project's going
43:11so you agree that the philosophy of have
43:14several people looking over everyone's
43:15work could extend into the actual rehab
43:18management that's what you're saying
43:19yeah okay anything else that I should
43:21know because I think I will revise this
43:23book The burbuck a couple other ones
43:24when I get some time I'm just curious
43:26what needs to go in these books to
43:29don't rely on sales comparables that are
43:33old when you're initially looking at the
43:34deal because generally at least in my
43:37state the appraisers are going to look
43:39at the six months like the most recent
43:42sales in the last six months when
43:44they're appraising your property when
43:45when it's done so the one thing that I
43:48did on my first year was I was relying
43:50on a deal two doors down that appraised
43:53for the price I was going after but by
43:55the time I was done with the rehab that
43:57sales comp was outside the six month
43:59window so they no longer could use it
44:01that's probably more relevant today
44:03right I think so yeah I was just about
44:05to say for the last 10 years you looked
44:08at comps and that was your worst case
44:10scenario odds are it was gonna be better
44:12by the time it was done yeah the market
44:14has turned around rates that went from
44:16three percent to seven eight percent now
44:18we're seeing appraisals come in low very
44:20frequently right a house could have sold
44:22for 800 000 you list it for 750 the
44:26appraisal comes in for 6.85 or something
44:28because rates have gone up so much so
44:30that's another thing you got to be aware
44:32prices can go down now that rates have
44:35gone up and that can catch people by
44:38surprise any other surprises that came
44:39up specifically when it came to buying
44:41in another state that you just weren't
44:42prepared for you know always estimate a
44:44little bit over your initial rehab
44:46budget I the first deal I bought I don't
44:49think the contractor looked up in the
44:51addict but there were live electric
44:52wires running on the wood like floor in
44:56the Attic which is number one very
44:58dangerous and number two illegal and I
45:01had to address that immediately that
45:04bumped my rehab budget around 10 so I
45:07think and every project I've done since
45:09then there's always things that pop up I
45:11think a 10 per second to disease is just
45:13should always be used what about picking
45:16tenants what can you tell us about
45:17choosing tenants looking into tenant
45:19history what are some things you look
45:21um you know if you're buying something
45:23already tenant occupied make sure
45:24they're paying they're paying on time
45:27um you can kind of see that the way that
45:28they're living if you go in there and
45:30there's stuff everywhere and it's full
45:32to the ceiling it's you might not always
45:34get your rent on time let alone even get
45:36it so you can still make deals work even
45:40with a non-paying tenant depending on
45:41how good it is right just make sure
45:44you're accounting those expenses and
45:46your numbers yeah we briefly mentioned
45:48this earlier and it's worth repeating
45:49it's very easy to especially if you're a
45:52new investor you haven't done this for a
45:53while to get a lease to see this
45:55property's making 950 a month to run
45:58your numbers based on the lease you
46:00close on the property you realize that
46:01tenant's eight months behind in rent
46:03hasn't been paying the landlord hasn't
46:05wanted to pay for an eviction or can't
46:06afford an eviction and so they just sold
46:07it to you that's why we verify that the
46:10money is actually being deposited in the
46:13bank not just what what the lease is for
46:15and this is really really really
46:17important when you're buying off Market
46:19Properties or deals directly from
46:21sellers like you're saying because most
46:23people when their property is doing well
46:25they don't think I should sell it even
46:28if their return on Equity is low even
46:30unless there's like serious concerns in
46:32the market and people are thinking I
46:33want to sell before things turn around
46:34if your property is making money and
46:38nothing's going wrong you just don't
46:39think about selling it but when things
46:41start breaking tenants stop paying it
46:42becomes a headache you try to fix it
46:44when you realize you can't fix it
46:46quickly sell which is often exactly when
46:49buyers are getting introduced to that
46:50deal and if you go in as the buyer
46:52expecting this is just like a regular
46:54house on the MLS that the seller has put
46:56in pristine shape and they're trying to
46:57get top dollar you can really get taken
47:00advantage of is that something you have
47:01any stories you can share of clients
47:03you've had or situations you've had
47:05where that's been the case yeah um an
47:07off Market deal that
47:10um I didn't sell but it was in my office
47:11but this is a great example
47:14um it was a duplex where both tenants
47:17were paying 1100 a month the rental
47:19comps were truly around 900 Max a
47:22thousand so it was really high
47:25um which is should always be a red flag
47:27if you're seeing units renting for way
47:30more than what everything else is around
47:31it but when that property closed when
47:34the seller got his key or when the
47:35seller's PM got their keys and they went
47:37to the property both units were vacated
47:40it's vacant and they both left so they
47:43were and that investor I'm assuming was
47:45random numbers based on 2200 a month in
47:48rent and they're not going to be getting
47:50that that's a great example thank you
47:52for sharing that so let's get some quick
47:55Clarity here this was your first deal
47:57how quickly did the rest of your deals
47:59come together after this first one yeah
48:00so the next four that I bought were in
48:03around a month to two months after that
48:07um and then ever since then I've been
48:09picking up about one to three every
48:10single month and are these you're
48:12finding them the same way that you were
48:13finding deals for clients uh yeah pretty
48:15much the same ones yep all right Josh
48:17looking ahead what does your plan look
48:19like for how you you intend to scale
48:21your portfolio I'd like to build more
48:23Contracting teams so that I can take on
48:25more projects at a time right now I'm
48:28working on 15 units I'd like to build a
48:3110x that rely on more people a W-2 more
48:35positions so that I can rely on them
48:38more and cut your costs down a little
48:40um those are some lessons that I've
48:42learned from professional property
48:43managers now are using the bur method on
48:45these properties very often yes for sure
48:47okay so with the change in the seasoning
48:49period that we're seeing with a lot of
48:51conventional lenders have you considered
48:53how that's going to affect how quickly
48:54you can get Capital out the speed you'll
48:56be able to scale definitely
48:58um my strategy hasn't really been
49:01affected by that because I actually am
49:03not lendable still because I don't have
49:05two years of the same income as a 1099
49:10basically I'm just refinancing out in
49:13non-qm products that is awesome hey
49:15David you mentioned that there's a
49:17change in the seasoning period what what
49:19is that change like is it I know with
49:21the Burr you have to have the tenant in
49:23there for I think six months is that
49:25what you mean now it's longer than six
49:26months no it's not necessarily the
49:28tenant has to be in there but if you are
49:30buying a property that has a loan on it
49:32and you want to refinance and pull cash
49:34out of the property you now have to wait
49:3612 months instead of six months if
49:38you're going to use a conventional loan
49:39now Josh mentioned he's using non-qm
49:41which stands for non-qualified mortgage
49:43this would be like dscr products that
49:46you're hearing a lot of people talk
49:47about it's important also to note that
49:50that does not mean like subprime crap
49:52these are still 30-year fixed rate loans
49:54it's it's not a whole lot different the
49:56rate's going to be a little bit higher
49:57because they're not going to be basing
49:59your ability to repay off of the money
50:02you make they're going to be basing it
50:03off of what the property will produce
50:04itself sort of commercial underwriting
50:06guidelines but many loans are making you
50:08wait 12 months before you can take cash
50:09out of property not six so it sounds
50:12like from what you got going on Josh and
50:15this isn't slowing you down because
50:16you're just making money through
50:17commissions as an agent you're not going
50:19to run out of cash right I don't think
50:20so no yep I love that multi-pillared
50:23approach right when you're not dependent
50:24on just one pillar these changes don't
50:26throw your game off because you've got
50:28several different approaches here what
50:29are you thinking Rob about about moving
50:31forward Josh's strategy I think it's
50:33good man I mean I would definitely want
50:36um I mean you're picking up a lot right
50:38and I think it would be wise to really
50:41settle into it right if you're if you're
50:43at this point where you're at 10 I would
50:45start thinking about with I I guess I'm
50:47just seeing it in your personal
50:48situation your young you're hungry
50:50you're making a ton of money and you're
50:52doing the right thing you're buying
50:54property instead of just pocketing 100K
50:55every month you're moving it into real
50:57estate funds but I would say now is a
51:00moment to maybe kind of taking a uh take
51:03a step back and start considering your
51:04scale approach right like how can you
51:06stop putting so much time into one to
51:09three properties every month and how can
51:11you start maybe focusing on bigger plays
51:13that can maybe even effectively you know
51:15lower your tax bill because I know that
51:17this is something that you're probably
51:18dealing with for the first time making a
51:20ton of money and having to pay a ton of
51:22taxes on it right yes yep so I kind of
51:26the whole tax situation as early as I
51:29could as an agent I set up my intake
51:32commission through an S corp versus an
51:36individual so that lowers my tax burden
51:39uh substantially and then I can also
51:42leverage like cost segregations as well
51:45and the properties that I'm keeping to
51:47lower my commissions coming in I'm
51:49trying to utilize as many strategies as
51:51I can absolutely yeah you don't hear 22
51:54year olds talk about cost segregation
51:55all that often never heard that come out
51:57of a 22 year old's mouth actually you're
51:59the first time seriously dude I feel
52:01like we got to talk about cost
52:02segregations more just on the podcast
52:04because it is like the the real estate
52:06cheat code that can save you I mean in
52:09your case hundreds of thousands of
52:10dollars in taxes so that's cool man I'm
52:12really glad to see that you're saying it
52:14it seems like you're scaling up uh
52:16according to like what you can do so
52:17just think about how you can most
52:19effectively use your time because you
52:21got the time and the money right now now
52:23you just got to figure out how to use it
52:25the most effectively sure so your first
52:27goal was to replace your doordash income
52:30You've Done That What's your next goal
52:33um I want to have 100 units by the end
52:35of the year 100 units by the end of the
52:36year that's all yeah yeah that's just a
52:39little I mean it seems like you're
52:40thinking about exactly I'm talking about
52:41right if one to three properties in a
52:44year that's going to be 10 to 30
52:46properties so obviously you're thinking
52:47how can I get to 100 right so
52:51um I I think it's so cool man that you
52:52you're on this podcast it's a very
52:54inspirational story you went from being
52:56a doordash driver to owning a 1.5
52:59million dollar portfolio and it's also
53:01just so crazy to know that next year
53:03your portfolio is going to be wildly
53:06different than what we're talking about
53:07today I think so yeah
53:09so congratulations Josh this is an
53:11awesome story thank you for sharing
53:13where you're at very inspirational you
53:15haven't let anything stop you including
53:17your age or how much I think you look
53:18like Dave Franco you're pushing forward
53:21in spite of all of this you could speak
53:22in the Hollywood route instead you took
53:24the real estate investing route so
53:25welcome to our side if people want to
53:28find out more about you where's the best
53:31place that they can find you uh two
53:32places you can follow or message me on
53:36Instagram at joshjanis just my name and
53:39then same thing on Bigger Pockets uh
53:41Joshua Janus I'm on there all right Rob
53:43where can people find out more about you
53:45um you can find me over on uh raw built
53:48on YouTube and Instagram
53:50and in your heart and uh
53:54well that joke won't land because the
53:56other podcast comes out after this one
53:58but you will see why I laughed if you
54:00listen to a future podcasting so that
54:02will make a lot of sense this was a call
54:04back before it was actually said this is
54:07some uh tenant type stuff that we're
54:09getting into where we're manipulating
54:10time for you guys on a podcast you're
54:12gonna love it it's a call forward yes
54:14call forward even better there you go
54:16Josh it totally makes sense you don't
54:18know what we're talking about it will in
54:19the future so just hang with us here
54:21thanks for being a good sport you can
54:23find me on social media at davidgrain24
54:25don't ever send money to me because I'm
54:28not asking for your money there's a lot
54:29of fake accounts out there so hopefully
54:31at one point I'll be able to get the
54:32blue check mark I heard that meta is
54:34changing it so that you just pay like 15
54:36bucks a month and people can stop
54:37getting scammed it's about time uh you
54:39can also find me on YouTube at
54:40davidgrain24r go to my website
54:42davidgreen24.com and see what I got
54:44going on Josh fantastic job very very
54:47very excited to hear what you're doing
54:50especially because you're an agent and
54:52you're moving forward check out my books
54:54let me know what you think about the
54:55three books I wrote for uh in the top
54:57producing agent series for Bigger
54:58Pockets I'd be curious what you think is
55:00someone who's 22 and is already crushing
55:02it Rob you have any last words before we
55:04get out of here yeah Josh I guess
55:05instead you could check out the books
55:07that David just talked about but really
55:08the book that you need to be checking
55:10out is David's upcoming book scale which
55:13talks about how as a real estate agent
55:14you can scale your business and that
55:16will be coming out soon all right promo
55:19code for that we don't have one but
55:22anyway check that out we've got to call
55:23forward and a call back all in the same
55:25show great job Rob and we're back all
55:29right Josh we're gonna let you get out
55:30of here this is David Green for Rob the
55:32comedian absolo signing off
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