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Speaker 1 (00:00):

Good evening, everybody. Peter Vekselman here. How is everybody? It is seven o’clock. We are here together. We have some great, great, great stuff for you today. It’s just me. Uh, last, I think last couple of weeks, I’ve been doing this in our, uh, uh, in town place in Atlanta today. We’re at the lake house. So that’s why change of scenery. Um, it’s a hot day in Atlanta. Uh, that’s why, if you could see here, my wife, like right before we got started, brought the fan out. she’s like, you’re going to need this. Um, but I’m like, I want to hang outside and right before this, I don´t if you guys could see that’s our boat down there, the little ones, my son’s big ones. Mine. We spent about three hours on that today. So that was a, super-duper fun. So glad you guys are here.

Speaker 1 (01:13):

It’s just me today, but I promise you I’ll make it worth your while I got some really good stuff for you. So I know if Julia was here, she would be telling, asking, uh, uh, asking you all where you were from. I still have this goal of, of, of, of having a webinar where we have all 50 states represented. I think Kristen told me last time she’s taken down where you guys are from. So if you all just keep on putting in where you’re from, that’d be helpful. I know Kristen behind the scenes is like tagging all these places. And so we’ll have a place for every city hope, uh, for every state, for sure. And maybe hopefully one day, every city, Texas in the house. Wow. We had a bunch of Texas people in the house today. We got Georgia, we got Maryland, uh, Florida.

Speaker 1 (02:05):

Uh, we got Georgia got more Georgia, uh, got more Florida, more Florida, Oregon. What’s up Keith, uh, Connecticut, South Carolina and North Carolina. St. Louis. Awesome. The goal for me, personal, you know, I realized in life, you have to have these like measurable goals, things that you could achieve. You know, I think part of the problem, sometimes people set these goals. They can never achieve. I was the one I have measurable goals. So I know it’s a very measurable, something very achievable that we can get to where we can have, um, uh, where we will be able to have all 50 states represented somebody here from Saturn. I dunno, like they literally mean the planet Saturn or if there’s south Saturn, like Saturn city, somewhere Louisiana and the house, Chicago, Illinois, the house. Wow. Somebody else from Texas, we got really Texas up the wazoo today. Awesome. Awesome. We’ll be in turn here. And just a couple of minutes guys. I promise you. I’m going to make it worth your while today, guys. Uh, Oklahoma, more Texas. Wow. Texas contingency. Super-duper glad you guys are all here.

Speaker 1 (03:34):

We will be getting started here shortly. I am kind of doing this for, I don’t think I’ve ever done this from outside. Um, so very cool. Very excited. If it does get too dark as we go on, I’ll head right in to our lake house and finish off from there. What’s up Archie? What’s up Peter? What’s up? Don. Michael Omar. Eugene Legrow Russell vesture to RESA. Michael Johann, Janet Keith, another Keith, Lisa, Melissa, Kevin, Jamie Nancy, Erica, John Leo, man. We got a ton of people. What’s up Shane? Um, what’s up Nancy? Uh, got another Nancy what’s up? Nanny boy. Tons of tons and tons of people. Hey bill from Sacramento. I bet it’s hot as that here. I’ve bet. Bill. You got me beat in, in Florida right now. Uh, what’s up Tim? What’s up earnest.

Speaker 1 (04:48):

All right. We’ll be getting started here just a couple minutes. Thank you. Thank you all for being here. Port Richey, Florida. I don’t think I’ve ever been there. I heard quite a bit about, I think we’ve done a deal or two there. What’s up Glenn. I will tell you I’m doing this outside today. So if it does get too dark, I might in the middle of the webinar be moving inside. It’s just me today, but guys, I promise you here, we get rolling just a couple of minutes. I am going to make it worth your while I got some really good information, some personal things I want to share with you. All, some things I’ve been through myself, some things that I know is going to give you guys, uh, not just hope, but you know, I think some answers to so Oregon 97, Ooh, it’s in the nineties where I’m at Keith. It’s not 97, you know, but we’re a couple of hours ahead of you. So it’s getting a little bit like past set on. I think you’re there like five o’clock hour. We were in the nineties. I spent about three, four hours out there

Speaker 2 (05:57):

Today. That’s 250 miles of shoreline. We took my dad out on one of our voting trips today. It was cool. Jumping in the water, took him about 20 minute ride out there, cruised around. It was great. Seeing my dad jump in from the, from the boat and swam around for about an hour. We did two trips like that today. 1 0 2. And so you got to solve all beat? Uh, no, I hear you. I hear you, James. It’s the humidity that kills everything all the time. I get it. All right, guys. Well, it’s about that time again. I appreciate ton a ton. All of you guys, um, being on today. Um, I got some really good stuff. Uh, I got some, I got some stuff that I think everybody could relate to today. I mean, it’s the bottom line. I don’t care. What part of your career you’re in?

Speaker 2 (06:57):

I don’t care if you’re just getting started. I don’t care if you’re been doing this, like I have for 22 years. Um, I’m going to share with you some stuff that is going to, uh, um, it’s going to, uh, is going to make sense to a lot of you guys and it’s gonna hit home with a lot of you and it’s going to, uh, a bunch of you will use what I give you today and I think we’ll go out there and become better investors. Um, but first, if you all don’t mind, I’d like to start out the way I always start out. Kind of just telling us just a quick backstory about us, how we got to be here and who some of you all are. Um, you know, obviously we’re a partner driven real estate investment company. We have never, we have not been that forever and ever.

Speaker 2 (07:38):

Um, matter of fact, we just became full fledged partner driven model really in the last couple of years. But the out of the 22 years that I invested in real estate, I was a typical investor kind of seed deal, do deal. CDL, do deal, did very well. Did you know thousands of deals like that? You know, got the point where I actually had my own call center of inbound calls, had an negotiators, you know, lying to floor. Uh, we took sometimes as many as a thousand, checks us out a thousand seller calls, um, on a daily basis for motivated sellers. And we did very well with that model. Um, like I said, I, you know, th you know, well over, you know, thousands of deals like that and things were going well, but like anywhere else in life, you know, everything is relative. Everything is proportional.

Speaker 2 (08:26):

You know, I remember before I got started as business, my goal was to just complete one deal successfully. You know, then I got starting this business and in the first six deals, I lost everything I had. So then my goal changed. Forget just doing one deal. Let’s see if you could at least even make a couple of some of the money back, you know, so everything is relative and proportional. And so even when I got to be big, I then started thinking, well, how do I get to be even bigger? How do I do things like beyond my own capacity? How do I expand beyond, beyond my own geographical reach? How do I get beyond my knowledge base? And this is what a partner driven model really evolved from. You know, we started realizing what if we start partnering with people, not just like chasing deals ourselves across wherever we were doing deals.

Speaker 2 (09:08):

And I had offices here in Georgia, but offices in Florida through Texas all the way out to California. So I had real estate offices, investment offices spanned the United States. Um, uh, even, even on those investment offices, we got a realtor offices involved. So we not only were investing into real estate. I had a full fledge real estate teams. Um, and we had a very unusual model when it came to just real estate agents. So things were going well, but again, I want it to get bigger. And that’s when we said, let’s, let’s just start partnering and let’s start doing deals because then instead of just focusing in areas, we had our offices in and guys, by the way, this is very important. What I’m telling you, you know, some people get starting this business to go to the some seminar and listen to some guru and they hear, oh, you could do this virtually, let me tell you something that, in my opinion, that’s a bunch of BS.

Speaker 2 (10:01):

This, this is a business, you know, even after doing thousands of deals, I could tell you, I only was doing deals in areas. I had, uh, offices in because real estate, any way you slice it as a local business. And so to really get a grasp on what you’re doing, you got to stay local, you gotta stay local. You gotta, you gotta have some kind of market presence, but I wanted to get beyond my own market presence. And so what I started we started doing is we started just basically partnering with people, uh, in the beginning was, it was very much random people across the United States. And we realized that if we were able to partner with people and start having market presence in, uh, other locations, other than we had offices and it became a successful model. And, and so then, um, it, the model just took a model, just took its own life.

Speaker 2 (10:48):

And so here we are a number of years later, and now I don’t have a, my own call center anymore. We don’t take a thousand inbound calls every day anymore for our own deals. Right now we have 100% migrated and gravitate it towards the partner driven model. So, pretty much now I wouldn’t say a hundred, we still do our own deals, but it’s just, they just come to us. They just come to us because we’re established, we’ve been around. So to this day, people call us, Hey, I heard you do real estate, blah, blah, blah. So, but we don’t chase deals ourselves anymore. We realized that, uh, the partner driven model from our perspective is the way to go because it gives us market presence almost in this point, spans the United States. And, and we feel very confident doing deals with our local partners, because we then do literally truly have market presence, you know, and, and what we realized because of the successes we’ve been, we’ve been having that for, for such a long time.

Speaker 2 (11:42):

In the end, the beneficiaries are always our partners. Okay. Uh, because they, they, they get coached by us. They get mentored by us. Uh, they get technology from us for being our partner. We help them with lead gen w w if capital’s ever needed in the deal. Obviously we provide all the capital. If capital is not needed, we provide, you know, teach them ways of structuring deals. They don’t know how to structure. Maybe themselves, our construction team comes in. If, if it’s needed, helps them fix it. And we sell it, split the profits down the middle. And so we, we, at the corporate level, what not the corporate of our investment level company, we are all in. We are a partner driven model, and we’re always looking for more partners. And, and that kind of gets me round to tonight. Who’s on this call. There’s two types of people on here tonight.

Speaker 2 (12:25):

Some of you guys are already our partners, and super-duper, we’re glad you’re here. Uh, obviously if you’re a partner of ours, you know what you get, uh, but for you, you know, and I always compare myself to you guys many years ago when I started, you know, when I went through my horrific beginning, and then finally starting digging my butt out of the disaster, I created, it took me three years in this business to dig myself out. And I made zero, like literally first three years in the business, I made zero. You know, some people get in those businesses and two months later, they’re like, I’m out. And to me, that makes no sense whatsoever. Like I’ve made zero money for the first three years and, you know, uh, look at me now. Um, but, um, but back then, when I finally did start becoming some, a little bit successful, there were a couple guys that became instrumental in that success.

Speaker 2 (13:10):

They became my coaches, my mentors in essence. And so anytime they were anywhere, I was always there. Okay. And some of you guys are partners, and that’s why you’re here tonight. You’re just like, anytime we’re doing something on a daily basis, sometimes twice a day, you’re always present. You’re always there. And this is a way for you to kind of connect, reconnect with us recommit. And so glad you guys are here. You know what my message is to you, right? Reset, recharge, re commit, and let’s go to work. Some of y’all are not yet our partners. And we’re so glad you’re here are, uh, you’re here. Also, you may have heard about our model. It may be, you’re trying to get more comfortable with us, and we’re so glad you guys are here. And if you’re not yet our partner, um, we want you to become a partner.

Speaker 2 (13:49):

I mean, that’s really the bottom line. That’s what Tuesday night webinars are a lot about. It’s a way for you to just gain confidence in us, because I think that’s really what it comes down to. Like, do we really know what we’re doing? Do we actually do what we say we do? Are we actually investors? You know, do we just, you know, you know, go through the motions and, and this is when you, when you kind of hear us and listen to us and hear our stories. I think you get comfortable with that. Uh, and guys, we have something really new for those that are not our partners yet, and this will be on your chat screen today. Uh, we want you to go through our new partner application. Literally, it just got released tonight. Okay. And, and, and if you’re not yet our partner, we absolutely need you to go to partner-driven dot com slash apply.

Speaker 2 (14:32):

It’s partner-driven dot com slash apply. And it’s a way it’s, it’s a brand new partner application. It’s got hours of testimonials. It’s got just incredible information. So when you get there, if you already started that vacation, just sign in with your login. If you have not started the application process, just create a quick username and email a username and password for yourself and start the process. But it is amazing. I mean, when you go through this partner application, it is truly, truly, truly amazing. So we want you to, if you have not engaged with us yet through the partner driven.com/apply, we want you to do that today. If you already started the partner application, just go to that page, also resign in, and you’re going to see some just it’s an application process. We put people through before to become our partners. So, uh, really, really encouraged to do that.

Speaker 2 (15:24):

Alright. So that’s it right there. That’s the beginning. Let’s get into the meat of why we’re here tonight. Um, you know, guys, it’s, um, I want to get kind of personal with you today and, you know, one of the things that I pride myself on, and maybe it’s kind of a little bit of an ego thing is, you know, I have achieved a little bit of success in life. You know, we live, or this is a place we’d like to spend two, three times a week here. Um, you know, if you see behind me, this is amazing lake, you know, you see down there, I don’t know if you could see it. You know, my boats park there that’s 250 miles of shoreline out there. We, we hang out, we play, we do this on a daily basis. We got a really cool place in town and, you know, it’s it’s, and sometimes I like to share those successes for another reason, just to validate, Hey, what we do works.

Speaker 2 (16:10):

You know, there is some success to be had in this business. We are here to help we’re here to partner and all this. Um, but the other side of the equation, I think is just important to the failures. Um, because I’ve had some Whoppers in this business. I mean, uh, both myself and, and, you know, when I kind of got bigger as I started having employees and all this, and, and, and I’d be the first one to tell you that this business, uh, is littered with, um, uh, with road, you know, roadside bombs. I mean, it really is. I mean, I, I don’t know. And I know a lot of people in this business at this point, you know, 20 some years experience. I mean, I’m about, I think I’m about as networked as there is, and I don’t know one true, true, true success story in this business that kind of started out, you know, I got in, I did my first deal and look at me now, 300 deals later, you know, all successes and all this.

Speaker 2 (17:01):

I mean, this business is littered, uh, with these minds all over the place. And, and I don’t think there’s a single person listening to me tonight. Uh, that would disagree with that. Uh, some of you guys are experiencing that as we talk, some of you guys are in the middle of one right now. Uh, some of you guys are trying to recover from one, um, some of you guys have given up on this business, uh, because, uh, because of that, you know, some, some, some of these minds have taken some of you guys out, and then now you’re kind of, sort of creeping back in, checking out the territory, seeing what’s, you know, what’s out there. Um, and the problem, I think, with the PR that the biggest problem with the, with the minds in this business is that, um, they’re big, they’re big. You, um, there are some businesses that you can get into and do, and, and, and, and experience they’re types of road, mine road, mines, and, and, and, and blockades.

Speaker 2 (18:02):

And they’re not that big. I mean, you know, you know, let’s say you start a carwash and, you know, all of a sudden you wash a car and it doesn’t come out exactly clean on the other side. Okay. What do you do? You just run it through, again, you take a little bit more time with it and all this, you know, you own, um, you know, let’s say you own a dry cleaner, and, you know, somebody comes in and the end, their shirt doesn’t come out perfectly. So you, you know, you take it back to clean it again. How about the bottom line is real estate is one of those few businesses that truly is, and a very unforgiving business, very unforgiving business. And, you know, uh, I often tell folks that in this business, this is a business where you could, you could sneeze the wrong way and lose $10,000.

Speaker 2 (18:44):

I mean, literally, I mean, you could literally sneeze the wrong way and be like, whew. And, and you’re a gunner. And because real estate is tied into your finances and let’s face it. I don’t care. Who’s who, who, who you are. Everyone has limited finances, very few people out there could say, well, I have, um, um, you know, I have unlimited finances because everybody has a finite finances. This is the kind of business that when you get to the, you know, like when you reach to the top of it, and you’ve got nothing left, you really have another choice, but you got to get out. Okay. So again, the downside of this business is, is huge. And so what I want to share with you guys today, um, I want to show you some of the things I’ve been through, because I think as you listen to some of the things, some of the mistakes that we have made, I personally have made, we have made corporately.

Speaker 2 (19:42):

You know, I think as you start listening to that, and they, you start understanding that, you know, you start a, hopefully to prevent you from making some of these mistakes, right? Some of you guys may have not experienced that death blow yet. Some of you guys may be, you know, made some mistakes, but nothing catastrophic, but when you kind of listen to what I’m about ready to share with you, um, hopefully it’ll help you avoid some of those mistakes. Uh, number two, I want to give you some answers because truly, if I knew some of these answers ahead of time, like when I got started, if some of these things, somebody came up to me and gave me some of these scenarios and said, Pete, look, here’s the reality. Here are the things that you’re going to go through. Here’s the things you’re going to experience.

Speaker 2 (20:26):

Here’s the things that are going to go wrong. As I would have started going through them, I will, I would have been paying attention more. And that one of the biggest problems in this business, and again, I think everyone here could relate to it. Let’s face it. You don’t know what you don’t know. Right? So a lot of these things, I just really didn’t even know. I didn’t even know they existed. Um, so you know, this is in no particular order, but let me tell you a, uh, a mistake that I see. So, so many, especially newbie people make, and you hear this all the time. You got to have a team, you got to build a team around you, right. Real estate. It’s, you know, it’s the developing team about developing a team. So let me just kind of walk you through my history with developing a team. You know, I got in this business, um, I didn’t really understand anything. You know, I went to a couple seminars and, um, and I heard the same thing. You know, you got to build a team, you gotta build an infrastructure around, you got to do this. And guess what, that’s exactly what I started doing. I started, I was the guy that started, you know, following instructions of what I was told in these seminars. And I started developing my own team.

Speaker 2 (21:38):

And, you know, so, so who, who, who was going to be on your team right away? Right. If you think about this, who do you need? You need a real estate agent. Like you need a closing attorney, you need a contractor. Uh, you need, uh, if you’re doing this yourself, you need a money guy, right? Those are all the team members that everybody says they need. And always, I always laugh when like somebody new in this business says I’m building my power team and I’ll be like, well, how many deals have you done? I haven’t done any deals, but I’m building my power team right now. And I just love, uh, um, I just love listening to that. Right. I just love hearing that. And I, but deep down inside, I’m saying you have no idea. And so here’s what happened. Uh, I remember I got started and, uh, I came into this business a little bit with an ego because I had just gotten out of the real, not real.

Speaker 2 (22:32):

I just got out of the mobile home business, which, you know, you know, there’s a little bit of a correlation between mobile homes and real estate. So, and we had a very, very successful mobile home business. You know, we’re flipping almost a hundred mobile homes a month. We were rocking on all the cylinders. And then literally the reason that we got out is because the financing fell out of the mobile home business. So we couldn’t get back and financing for our buyers. So then, you know, uh, my partner and I transitioned into real estate because that was like the next logical thing to transition to when you’re, when you’re getting out of mobile homes. Right. We went to a couple seminars, I heard about this power team and I’m like, okay, I got to develop my power team. I remember I approached, um, one of the top realtors in the area and I decided to invest in, right.

Speaker 2 (23:17):

And, and the guy’s name was Jeff. That was his first name. He was the realtor. And I’ve made this big case for myself that I was this, you know, I never told him I was in the motor homes. I was just telling him, oh yeah, I did a tons of real estate transactions. So I kind of built myself up, you know, I’m sure he saw right through me. Um, but I’m like, you know, Hey, you know, I know you’re the big guy here, but I want you to take some time with me and blah, blah, blah, blah, blah. So, you know, I got Jeff engaged, right. I got Jeff engaged and, and I think the first, probably out of the first six or seven properties that I bought, Jeff found them for me. Right. And, and I still remember riding around with Jeff through these neighborhoods.

Speaker 2 (23:59):

It was like Kirkwood here and knows what an up and coming neighborhood 20 some years ago. Um, and, and just started pointing out these opportunities for me. Right. Um, and, and I was excited because Jeff was treating me like he was giving me inside stuff. Right. And I’m sure some of you guys can relate to this. Like, you’re real like, Hey dad, not too many people know about this thing, but this is really good stuff. And, and he was telling me all the right stuff, like, he’s like, oh, this property just hit the market. Uh, or I’d be like, uh, well, Jeff, this has been on the market for like six months. He goes, oh yeah. Because the contract fell through a couple of times. Um, and, and then, you know, I would say, well, what’s this property worth and needs to take, you know, 200,000.

Speaker 2 (24:42):

And then he’d say, look, this property over there sold for 200,000, that property sold for 210,000. This property sold for, you know, 230,000. So we could easily get 200 for it. And again, Jeff knew what to say to me. And, uh, and, and how, you know, what to say to new buy, you know, use all the buzzwords, Hey, this is a great deal. And nobody else knows about it. And then it just hit the market. And I’m just, I’m going to show it to you first and before I show it to anyone else. And, you know, he had me going now, remember nobody gets in this business to get out of this business. Right. Everybody gets in this business from a long-term perspective. So in my mind back then, I was like, I was the same way. Right? I’m in this thing for the long haul.

Speaker 2 (25:25):

Right. And Jeff, he knows that Jeff totally knows that I’m in this thing for the RA for the long haul. So Jeff would never give me bad information right now. Let me play the role of Jeff. And this is what a lot of you as newbies are going through. Here’s the role of Jeff. Okay. I got a new guy, just like 95 out of the last a hundred new guys that got in. He’s only got a lifespan of probably a couple of deals before he crashes and burns. Um, I know exactly what to say to him because he wants to be mates, feel like he’s special. And so I’m going to make him feel like he’s special. I know exactly how to talk to this new guy. Um, and so in essence, I’m going to call him Peter, but in my mind, really all he is, is a paycheck to me.

Speaker 2 (26:15):

Okay. So my perspective is I’m a long-term guy, I’m a long-term player. Jeff loves me. His perspective is this yo-yo is a short-term player, but he has a paycheck. And so I’m going to go and make as much commission from him as possible. And guys make no mistake about it as exactly the relationship Jeff and I had. And that’s exactly what happened. I was a paycheck to Jeff. Um, and that’s how Jeff treated me. Um, I had no idea, Jeff didn’t believe in me like who can not believe in me? You know? Um, and everything he told me became gospel. You know, I believed in everything he said, because I thought he looked at me one way. And Jeff, just like almost every realtor looks at the brand new guy or girl looks at me the exact same way short-term player. I got to squeeze everything I can out of him.

Speaker 2 (27:01):

Uh, because here’s what I did not realize that I totally realized now, uh, if a real estate agent has a good deal, they are not bringing it to a brand new guy ever, ever, ever do you know why? Because they all have people who are like me, like now, 22 years in the business who actually verifiably have cash, verifiably can close and wine a world with a real estate agent with so few good deals out there, actually take a good deal and give it to somebody who’s not verified right now. They give all the good deals to the verify guys. And they give all the crap to the paycheck guys like me. Right? So for the first six deals that I did, Jeff gave me, you know, I don’t know, four, like I said, you know, I don’t know, four or five of them, uh, in the end I lost money on every single one of those deals.

Speaker 2 (27:50):

Every piece of information Jeff gave me was the wrong piece of information. Okay. Team-building right. Some of you guys think you need a team building. You don’t need them to be team-building in the beginning. Okay. It was the next part of your team, your PR team. And the same as my team was, oh man, I need a good contractor. Right. And so I started looking for contractors in the beginning, right. Instead of doing what I really needed to do, go out myself and invest time into finding deals. I was going to build a power team. Right. So I started looking for contractors and I remember, uh, you know, meeting a couple of contractors going through the motions and guess what they started telling me exactly what I wanted to hear, that they have this incredible experience that they’ve been doing this stuff for forever. You know what I mean?

Speaker 2 (28:39):

That they’ve built sky rises. You know, the, the, you know, they’ve been doing this for 40 plus years that they’re successful as crap. And you know, and then as I, you know, kind of meet them or see them off, you know, I see them get in their 40 year old car clunker. And you know, I hear, I still hear it a muffler, like when they’re awake 10 blocks, but it doesn’t hit me because as a beginner, I was just to build a power team. And this guy told me exactly what I wanted to hear. He’s got experience, he’s got the right financial set up, you know, he’s, he’s been doing this forever. He’s, he’s, he’s, you know, all the big guys in the town use him, remember I’m building my tower, it’s my power team. Right. And some of you guys think you need a power team.

Speaker 2 (29:22):

You don’t need a power team in the beginning. I promise you, because guess what? I became this story. I became to this, all these contractors, I became a paycheck again. And so they understood how to play me. Right. Say they understood. And when they looked at a house for me and then needed 60,000 worth of work, they understood I’m an idiot or I wasn’t 18 yet. And they told me that house needed $30,000 worth of work. Why? Because an idiot like me makes a decision based upon like how cheap I could do something. Right. And so when he told me he can get that house done for 30, all of a sudden the deal that didn’t make sense, started making sense. Right. So instead of really evaluating, based upon the merit I evaluating, um, uh, I evaluated him based upon what he told me, which is totally a hundred percent irrelevant.

Speaker 2 (30:18):

Right? And so I brought in the, in those member, first six projects, I lost half a million dollars, but I was building my power team. Cause everyone, you got to build a power team. Right. Because everybody wants a new guy to be on the new guy’s power team. Right. So no, nobody wants to be on a new guys, power team, only people that want to rip you off, want to be on your power team. Right. So my first six jobs and in my first two or three contractors all across the board rip me off and they ripped me off so bad. Cause remember I was new. I didn’t understand things. I literally remember one night I’m getting a call from the neighbors. Right. And they said, something’s wrong. You know, they were working on my house. They said, something’s not making sense there. So I jumped in my car.

Speaker 2 (31:01):

It’s like eight o’clock at night. I drive to one of the worst parts of town. I show up the guys, my contractors named the idiot’s name was Tucker. And I’m like, and I could tell this was like whatever he was doing when he was messing my house. I think he was literally taking the parts of my house and going somewhere else and like delivering them there. Right. And, and I said, Tucker, dude, get off my property member. I’m stupid. I’m an idiot. But I’m building a power team, which that was what I’m supposed to do. And Tucker literally took a pair of handcuffs, handcuffed his hand and handcuffed himself to my house. And he, he made the statement meant 22 years later, I still remember the statements said, here’s what you don’t know. He said during the it’s your house. But during the construction, I, as the contractor have more rights than you do.

Speaker 2 (31:46):

And 22 years ago, I believed that. And so I literally was thought I was hopeless. I literally thought I had no rights while he was doing the rehab. And so instead of kicking him out and calling the cops on him, I believe him. Cause remember, power team. Right? We all need a power team. I left. I left because I thought, well, if he’s got more rights than I can’t do anything about right. Remember you don’t know what you don’t know. So I left that night. Okay. So second member of my power team, my contractors, all of them rip me off. Right? Because remember you don’t need a power team. These are mistakes investors make, um, my money people. Oh my God. Oh, I can just tell you a stories upon stories. But my money people in the beginning again, looked at me as a dollar sign.

Speaker 2 (32:25):

And so what did they do? They got me to bring more money than I needed to closing. They got me over pay for loans, you know, all the way across the board. So one of the big, big major mistakes investors make is they think they need a power team. You don’t need a power team. Okay. Not in the beginning because nobody wants to be on a rookies power team. The only people that’ll join a rookies power team, especially in real estate. Are the people for C who see you for who you are, are a newbie. And unfortunately, since there are no really regulations in real estates, right. When it was unregulated businesses, they will take advantage of you. Okay. They will absolutely take advantage of you. Okay. So that was 22 years ago. Okay. That was 22 years ago. Remember again, I’m just talking about, you know, mistakes that we’ve made, uh, um, mistakes that we’ve made along the way.

Speaker 2 (33:19):

Um, I’ll tell you another mistake I’ve made. You know, there was a point where I got big enough that I didn’t need to go to like conventional money, conventional mines, like hard money and all of this, I got into what we all want to get into. Right. I got into, um, private money, right. Everybody wants to start raising private money. Right. That’s like the keyword man, if we can get raised private money from private individuals, we could really do this thing really good. So I remember I was, uh, introduced to a couple of guys out of a very expensive neighborhood here in Atlanta. Um, and, um, and they were, you know, and, and, and the main guy was really became my, my point guy in terms of inter insurance himself, providing money for me and, um, you know, getting his friends to provide money for me.

Speaker 2 (34:12):

And, and we raised, I can’t remember, we raised millions of dollars and, uh, uh, and the way we use that money is we weren’t using it ourselves. Uh, one of my partners and I, we ourselves became hard money lenders. Okay. So we became hard money lenders, um, to other people. And the way we raised this money and C I still remember to this day, this guy gave, gave up his cards to me when I met him. But again, I was wasn’t smart enough and understanding now, when I started raising money, I already had like seven or eight years of experience in his business. Maybe even more so I wasn’t a new kid on the block from a standpoint of doing deals, uh, or borrowing plenty of money. But I was a new kid on the block in terms of raising some serious cash. So, but he gave up his cards to me upfront.

Speaker 2 (35:06):

I just too stupid to understand. But I remember, uh, in the first couple of meetings, he just kinda made a one-off joke because he was an attorney himself. He made a one-off off joke and he said, oh yeah, we just won a huge lawsuit from, uh, an accountant. And that’s what I basically do. I just find idiots and I Sue them. And then when I, when they just get money from their insurance companies. So I just made a couple million bucks, uh, from this schlep who had, you know, who had backend coverage and that’s it, he gave up his cards, how he made, how does he make his money? Not by giving it to guys like me to relent. He makes money by suing people and then collecting from there, back in insurance, like liability insurance providers. But I was too stupid to see what the heck he was telling me.

Speaker 2 (35:51):

So we had a great year, year and a half run. Things were going great. We were borrowing it from him and one percentage lending it out. Another percentage we had mill, I think we had over $10 million that we had lent out, you know, things are going great, high fives everywhere. Um, and then the market, you know, in like around oh 7 0 8, the market started tanking. And, and guess what, everything, if you were in a business back then you were tanking. Well, guess what it’s pronounced when you had like $10 million out on the street back then, right? Like, uh, the people that you were lending it to, everybody was in trouble and it just, everything just, you know, flows, you know, flows downhill. Right. Um, and, uh, um, and so we started getting to get in trouble with our borrowers. Everybody was in trouble. Well guess what this guy started doing, they would lend money, start putting pressure on me, but Hey, I get it right.

Speaker 2 (36:50):

But he literally started putting the type of pressure on me that was literally against the law. He couldn’t as an attorney himself. He could not do to things to me, like say the things to me that he was saying, I didn’t, but I didn’t know that the other thing and here’s was my mistake. I did not do the right paperwork with him. Right. Remember, we’re talking about mistakes today. And so when things were great and they were just handing me cash and that we were taking it, I didn’t realize I should have covered myself with the right paperwork. Mistake. Number one, number two, he gave up his cards by telling me how he really makes money is by suing people. Right. Uh, and mistake number three was at the very end when the whole thing started kind of tumbling down, uh, not by Dan, even when there’s, it started tumbling down, he was not losing any money.

Speaker 2 (37:35):

We were just giving him prince principle back. At least he was getting us principal back. He just wasn’t making the interest on it. Well, he started calling me and harassing me, right. He started calling me and harassing me and he started telling me, Hey, I’m going to report you to the feds. You breaking rules. I mean, he was just making crap up. And for like five or six weeks, it was just undo. Just an incredible harassment, tremendous pressure. I was on edge constantly. And then one day, I don’t know why. For what reason? I decided to call my attorney. I didn’t even think about it. Right. You don’t know what you don’t know. And I called my attorney, Steve and I told him what happened. He goes, Pete, you’ll never hear from this guy again. He’s not allowed to do what he’s doing. He made one phone call to him.

Speaker 2 (38:15):

I never heard from, again, mistake again, I didn’t cover myself the right way. I didn’t understand how to read the investor. I was sitting across the table and on the back end, I didn’t know how to respond to harassment, which, you know, obviously I do now. Okay. You don’t know what you don’t know. You literally don’t know what you don’t know. And that caused me not only financial problems back then, but it cost me one with like health problems, like with the kind of pressure it was being on me and the kind of crap I started going through. And just, I just understand how to, how to react to it. Okay. Now guys, let me tell you mistakes. Don’t disappear. You know, I told you from mistake from 22 years ago, I told you a mistake from, you know, oh 7 0 8. Let me tell you a mistake from just a couple of months ago in our partner model.

Speaker 2 (38:58):

Right? And so one of the things in our partner model is we always say, everybody brings something to the table. You know, what do we bring to the table? We bring coaching, mentoring, uh, technology, lead gen, uh, financial abilities, uh, help with construction. But every partner that we have also bring something to the table, whether it’s just boots on the ground, whether it’s some sort of knowledge. So when we’re doing this one deal and our partner was a contractor. Right. And, um, so when we bought the property, okay, he’s like, Hey, I’ll just go ahead and fix it for you guys. And, and it just made all the sense in the world. You know, he’s like, Hey, I’ve been a contractor for, you know, 6 billion years. I worked for the defense department, um, you know, blah, blah, blah, blah, blah. Um, Julie even went down there, you know, Julie went out there and met him and she’s like, Pete, this guy’s legit.

Speaker 2 (39:52):

The guy’s absolutely legit. And because he said the right things. And because this is what I’m telling you now is a mistake for just a couple of this is like, I’d love to say 20 years ago, this is from just a couple of months back. Um, so he told us the rough stuff, he sounded like he was telling us the right stuff. We S Julie met him for, for coffee, uh, and felt like he was telling us the right stuff. So, because he told us the right things. And because we had that face-to-face meeting, we, uh, we just kind of gloss over the conventional due diligence that we do on all of our deals when it comes to rehabs. Right.

Speaker 2 (40:37):

Well, thank you guys know where I’m heading with this. Right. He ripped us off. He ripped us off. Um, you know, we had at that point, given them again, cause we were going off. What, what so many investors go off of our feelings, you know, but guess what we still, yeah, we still make mistakes. And he drew out probably about 60 to $70,000 in, in rehab money. And at that point we realized that we were just, he was just ripping us off and I don’t know what he was doing with the money, pocketing it, spending in something, I don’t know. Um, and in the end, and then when we finally closed that deal and sold that deal, I physically had to bring $115,000 to the closing table. That’s how much that deal cost me. Like I lost $115,000 on that deal. Uh, he was a partner and everybody knows what elements in our partnering program.

Speaker 2 (41:31):

You know, I, we, the profits, but I assume all the liability and the risk. And so he didn’t have the money, you know, to bring to the table anyway. So I absorbed all of that. Um, so that was a mistake. Uh, we just made, you know, just a couple of months ago where I lost well over a hundred thousand dollars, uh, because we, um, we got caught up. We, we, we kind of fell for it. We trusted too much, you know, and the cost me, it costs me money. Um, you know, and, and, and believe me guys is, I’m telling you this, I bet anyone that’s been in this business for any length of time, you know, you could see it, you know, you’re like, okay, been there, done that in that right now, or, you know, heard plenty about it. Uh, I’ll tell you kind of a funny mistake.

Speaker 2 (42:13):

Um, Julie made, this is when we, this was before a partnering program, right. Is when we’re doing deals ourselves. Remember we were marketing spending, you know, six figures a month on marketing generating a ton of leads, uh, doing deals ourselves. And in the end, you know, the one thing I always pride myself on is I don’t get involved in the deals at this point. You know, the team does everything, you know, I just, you know, when we close a deal, Mary sends me a text and it says, this is a check for your wire for X amount assistant. I’ve gotten, I’m very proud of that. I don’t show off. When I say that I’m proud of that. It took me years to get mine to that level. And so there was a deal that, uh, that we were involved in back then, uh, and somebody was giving us land, like for free, right?

Speaker 2 (42:59):

Like this, we contacted an owner and he’s like, Hey, I got this plot of land, uh, in whatever it was. And I don’t want it to just take it off my hands, no mortgage on it. Free and clear, no leans, clear, cut, clear title, no mortgage, no liens. You know, it, boom. Like when I say free, it was free. I looked at the deal and I told my team, this is not a good deal. You know? Uh, you know, there’s the saying, if it’s free, it’s for me, well, not in real estate real time, but Julie jumps up in that meeting. He’s like, Hey Pete, well, then I take it. You know, do you mind if I take it? And I’m like, Julie, I’m telling you, I know it’s free. She’s like, man, I could, but worst comes to worst. I’ll sell it for, you know, five, six grand.

Speaker 2 (43:42):

And I’m like, okay, whatever. And, uh, and, and remember, cause a lot of times, again, you know, people build this business, not based upon principles and logic and fundamentals. A lot of people make business, this business based upon emotion. I see her all the time partners like try to talk us into things. They get emotional over it. And, and I could tell you, that’s one of the number, one ways people, uh, one of the number one ways that people lose money in this business is through emotion. And Julie just got emotional about that. She just realized that, Hey, it’s free. How could I lose money on free? I could give it away. Right. Um, and, and she sat on that property. I don’t remember exactly how long, but I think she sat on that property for, um, six or seven months. Uh, and the end in the end, when she finally sold it, she brought money to the table.

Speaker 2 (44:29):

Okay. So that property costs her money. It costs her the time she sat on it in terms of taxes and whatever else I think the city might have to do. Uh, it, uh, it cost her money. Then when she finally got rid of it, because people wouldn’t even take it for free. And so, uh, again, another emotion, uh, another mistake. And again, if you’ve been in this business for any length of time, you know exactly what I’m talking about, emotion, trying to fit a square into a hole. And we’re of holding around thing into a square thing. You know what I’m talking about. And so many people get emotional about things and, and that’s, and that’s how you make a mistake in this business. Um, I’ll tell you another mistake that, that we, and we’ve made this mistake through a 22 year investment career. And again, it’s, it’s a little bit tied into emotion, but I see, I see a lot of investors do this, right? You get a property under contract. Right.

Speaker 2 (45:22):

And all of a sudden during the contract period, something needs to be done to it. Like, uh, sometimes maybe you get the property under contract and, um, it’s got some kind of a city lien on it, right. And the city says, man, we need this done by X amount of time or we’re whatever condemning it. Uh, or maybe the owner. So like, oh listen, I need X amount of money to move. You know? I mean, you see these things, you know, come up constantly, you know, you get under contract, but something needs to be done to it. Um, and then, and we’ve spent, and then you spend you do it, you know, you pay off the lien, you give, uh, the owner some money, um, uh, uh, the owner needs some money to move. Um, or maybe something needs to be fixed up. Right. You’re wholesaling a property.

Speaker 2 (46:11):

And the back end investor says, yeah, I’ll take it. If this is fixed. And the owner’s like, I don’t got no money to fix this and you get emotional about it. Like, okay, I’ll go ahead and spend five grand or 10 grand fixing it. Right. And next thing you do that. And, and, and then the title comes back and you’re like, oh crap, this is an unclonable deal. All of a sudden you spent some money and the owner is like, screw you. I ain’t selling this property anymore. Uh, or else you spend the money in the back and buyer bales in the deal or, uh, or one of those 30,000 things that can go wrong happen. And so another mistake we’ve made, you know, where we’ve gotten into the deal, uh, spent some money in a deal, um, and then realized that the deal never materialized.

Speaker 2 (47:00):

Um, well, how about taking your eye off the ball? You know, another thing that I did as a beginner investor, but I see begin investors today is that to this day they do tremendously. You know, they get one thing under contract. And the next thing, you know, constantly, it’s like getting this thing called [inaudible]. It’s like, oh, get close, get close, get close, get a club, get it closed. And you may close. You may not close it. But the bottom line is, as you look back, you have nothing else going on. And, and, and that’s a really a double-edged sword because I see even people that ended up closing the single deals, just as many of them end up leaving the business as the guy that never closes for his deal. Why? Because they spend so much time on that one deal so much time, so much effort, so much energy, so much stress, you know, it’s like they finally make it up Mount Everest, right?

Speaker 2 (47:46):

To get that closing, they get that momentary high, they pocket some money. And then they look at the next Mount over. It’s like, oh my God, I got to do this over again. It ain’t worth it. I have literally seen just as many people with this business after doing one or two deals, as, as I’ve seen, who’ve never done one deal because of that mistake, focusing on one or two deals and forgetting that it’s about the pipeline. Even if you have one or two deals going, I will put more value on the pipeline of 50 more potentials than the one almost totally at hand, because those 50 potentials will generate enough activity and create enough momentum. Because if you can get your pipeline into 50 or a hundred, you know how to maintain that. And then all of a sudden it’s 50 to 150 and a hundred or a hundred to 120 and 140 to 160.

Speaker 2 (48:38):

I’m more proud of that guy who may not even have too much things on the closing in than I am. The guy that’s got that one or two deals he’s about ready to close. And God forbid, I asked him about the pipeline and he wants to spend zero time talking about his pipeline and 99% of time of how do I get this thing done? And I’m thinking, dude, it any worse that I’m telling you, let’s get this thing done. But the key is what’s the w another big mistake focusing on all your effort on something that you think is a shirt thing, um, that in the end may or may not be, you know, a sure thing. So you got to, got to, got to, uh, be very, very smart about that kind of stuff. Guys is, as I sit here, I could go on and on and on about the mistakes I’ve made.

Speaker 2 (49:24):

You know, I’ve lost more money in this business than most people will make in their lifetime. You know, I’ve been at the lowest points of my life in this business. I could tell you this businesses, you know, eat me up, chewed me up and spit me back out. But in the end, in the end, I’m going to tell you what I think the ultimate answer is for all of this. And I don’t tell you this, because this is the model we run. I tell you this, because it’s it’s reality. You cannot argue with what I’m about to tell you. There’s nobody that can give me a logical answer to everything I’ve just told you and say, no, this does not the right answer. There’s no one out there that can I can’t myself. And I’ve been at this thing for 20 some years. See the ultimate answers to connect yourself and align yourself with somebody that in the end can absorb your mistakes.

Speaker 2 (50:10):

That’s really what it comes down to. The two big, there’s two huge issues with mistakes. One, we already talked about the money, the financial side, almost every one of these mistakes that were all different mistakes that really had nothing in common, except one thing they all cost money. Okay. The other thing about mistakes in real estate is that, uh, they are, um, um, they’re, time-related meaning every mistake set you back weeks, months, years, and let’s face it. No one here has unlimited money and unlimited time everybody here, and everybody out there has limited finances, unlimited amount of time. Okay. You know, I sit here and I tell you, it took me three years to get to zero in this business. Um, but at the same time, at the same time, it, uh, I had some finances, you know, I, I, I lost half a million dollars, but at least I had it to lose.

Speaker 2 (51:07):

If I didn’t have it to lose, I would have been out. I wouldn’t have been able to withstand the mistakes I made. Not because I didn’t want to do it. I just didn’t have half a million to lose. I just happened to have half a million to lose most people get in this business, don’t have half a million to lose. It also took me three years. Most people don’t have three years. I had three years cause I had nothing else going on in life. I didn’t have any else to go. I didn’t really have a degree. I didn’t have rich parents. I didn’t have anything that I could like fall back on. And I sure as hell wasn’t going to go back to a job where I made my boss, you know, look great. And myself, I’m on the, you know, the schlep behind the counter.

Speaker 2 (51:43):

So I really had nothing going else. Nothing go to, to give me what I wanted. So I happened to have the money to at least to lose. And I had the time because I had nothing else. Um, but if I didn’t have either, I didn’t have the three years, I didn’t have the money I would have been out. And that’s the problem with this business. Why so in the end, and this is like the dirty secret about real estate. And when you study it and understand it, you will agree with me. Very few people become successful in real estate. Very few. I mean, think ahead about how many people that you personally know that are killing it in real estate. You know, we all know successful doctors, we all know successful attorneys. We all know people successful in business. You know, some of us seem to know some successful athletes, you know, blah, blah, blah.

Speaker 2 (52:25):

But in the end, like go to your next REIA meeting. You know, when they’re allowed to have REIA meetings and see how many people are knocking out of the ballpark. And again, it’s because it’s because of mistakes. And because most people don’t have enough money to withstand those mistake and don’t have enough time to hold on long enough. Right? So the only way to buy past that is you have to align yourself with somebody that has money and then it gets shorter time span. That’s it? You have to align yourself. That’s the only thing that I could think of that could do it. You can’t study your way to success, right? Can’t be done not in real estate, right? Because you could spend the next six years studying and there’s something you’re not going to know about the next deal you do. We’ve done thousands of deals.

Speaker 2 (53:07):

And guess what? The reason I have a team to this day of people helping me do every single deal is because every single deal is unique. So you can’t study your way through it. Okay? You can’t learn your waste through it. You’ve got to either pay your way through it, or you gotta withstand time-wise. And if, and by the way, even if you have all the money in the world and you have all the time in the world, why waste it? Okay, why waste it? Why did I waste half a million dollars? Every penny I had, right? You got to align yourself because when you align yourself with somebody that has the ability to withstand financially financial hits, because guys, those never stop. I told you just two months ago, I lost over a hundred thousand dollars in the deal. And if anyone’s got experienced, it’s my team and we screwed.

Speaker 2 (53:51):

Okay? So you’re never going to withstand mistake. You never going to eliminate mistakes. So you want to align yourself, somebody that’s gonna, that’s gonna take the financial burden out of your particular situation, right? Or at least absorb it to a certain degree. And you got to align yourself with somebody because they can show, shorten that curve because they know more than you do. Okay? And this is why I keep coming back to our partner model. This is why from ARRA and sure. We love it. Love it. Hey, you should’ve seen the two texts. Mary texted me today. Two deals into six figures. I love it. But then the end I got in the end, I think the partner model creates for you. Everything you need. We, we take away the financial side of it, which means you keep half the profits and guess what? When mistakes will happen and they will make no mistake about it, they will.

Speaker 2 (54:44):

I just showed you. We just did one. We’ll absorb all the financial side. And obviously when you align yourself with somebody that’s been added for 20 some years and done thousands of deals, we know more than you do. I mean, that’s, that’s an unarguable thing. You know, I don’t know if that’s a word. So in our partner model, and I’m not saying don’t, if you don’t partner with us, fine, go find yourself another guy that’s going to pay for everything and spend, you know, teaching me everything. He knows. I don’t know how many guys are going to do that. How many investors in your marketplace are going to do that? Right? So, but if it’s not our model, then I strongly suggest you do that because that’s really my opinion. Only way to really get this thing going. It’s really the only way to get it going.

Speaker 2 (55:25):

I don’t know any other way to do it. So our partner model does that. We coach you, we men are you. We provide you with technology. We generate leads. We PR we, we provide the know-how. We provide the finances of the needed that we have part if it’s needed. Also, this is why I’m such a big believer in, in, in the partnering model. So you guys, I can tell you mistakes upon mistakes upon the steaks. I didn’t even hit the surface of the mistakes that we made back then. And still to this day, mate, there’s so many of them, this business is literally littered the bombs of things that you just don’t know that you don’t know. You know, you may have just heard, you know, I gave you five or six today and you’re like, okay, got it. I won’t make those mistakes. I didn’t give you the thousand of others that I made.

Speaker 2 (56:09):

There’s just too many of them. And guess what? There’s things that we still don’t even know. So align to eliminate the financial risk and align, to shorten the time span. And that’s ultimately how you get to be successful, at least in my opinion. And it’s how I get myself to those next levels. I aligned myself. My whole, my whole business world is nothing more, but aligning myself with the right people. You know, my investment company, that’s me aligning myself with the right people, the Julies of the world, you know, our partner driven model is nothing more than myself. Aligning myself with guys like Rafa and vice versa, by the way, with them, with me and all this, that’s all it is. It’s alignment. And this is why we feel like this is such a great opportunity. Anyway, guys, if you’re not part of our partner model, yet, please go to partner-driven dot com slash apply.

Speaker 2 (57:02):

Uh, I’m sure it’ll be up in your chat right now. Uh, if you already started the, the, the, the, the, the partner application, just so we log in there, if you haven’t started the partner application, it’s a brand new partner application it’s filled with incredible real life partner stories. You’ll just love going through it. Um, and, and if you’re not have not started yet, just to create an account takes less than five seconds and off you go. Uh, but we just released it tonight. You know, we’re off and the team is proud beyond anything in terms of doing it. Uh, just go to again, if you’re not, not yet a partner, just go to partner driven.com/forward/apply. Uh it’s it’s on your screen. Other than that guys, that’s all I had. Amazing, amazing night. I really enjoyed it. I really enjoyed doing it out of here at him. It might be time for me to jump back in that boat. They’ll take a, take another spin out there. Thanks guys. We’ll see you next week. Bye.