Speaker 1 (00:00):
So many here it’s Tuesday night live hope everyone’s doing super duper. I’m gonna close the door here because actually my place here is right around new construction. So you could hear the trucks pulling in and out. How’s everybody doing? Hope. Everyone’s had a fantastic beginning of the week, gearing up for an amazing rest of the week. Got some great stuff for you all here tonight. So get ready. Settle in. Hey, let me know where you’re from. You know, let me know where you’re from. Love to hear that we got Marietta in the house with Brad, with subs chain. What’s up Eugene, Eugene, Eugene, Eugene. We might be heading up to a Chicago here and we’re going to need to grab a drink. So Kansas represented Buford what’s up. Christine, Robert Denver, Crossville, Tennessee represented in the house. John Carnegie. What’s up drew what’s up Paul Wichita in the building.
Speaker 1 (01:20):
We’re going to be a skin started here in just a couple of minutes. So settle in, got some super-duper stuff for you guys today. Knocking things off my to-do list. What’s up Keith? What’s up? David D seen the house. Anglewood in the house. What’s up, Tom? What’s up? Archie. Paul, we got what’s up. George? Why are you little rock. We got Janice representing Detroit. What’s up? Erica got a lot of people that are here tonight. Just the minute or two past seven. We’re going to be getting started here in just a minute or so. Hope y’all are doing great. We just, I was just mentioning to you guys, like last week when I was doing this, um, last week when I was doing it, I was just pointing out like how much darker it’s getting. And it’s like, literally by the week, our member seven o’clock, there’d be sunshine, beaming through the windows and stuff like that. Now it’s uh, um, now it’s seven o’clock. It’s starting to get dark by the time we’re done here in a little bit, it’s going to be like dark dark here in Atlanta. So what’s up. Thurlow Massachusetts represented. Good to see everybody. All right, let me get started here shortly.
Speaker 1 (03:00):
Let me get my stuff situated. Hope everyone’s having a good beginning of the week. Um, I got a big travel week coming up next week. Next week, actually flying out to a mastermind. A bunch of super-duper dudes. We’re all getting together for three or four days in Florida. Um, uh, some of y’all know some of these guys, I’m a guarantee you, some of you all know us as a result of them. Some of you know me as a result of a gentleman named Patrick Riddle. Okay. And I’m going to be meeting Patrick out there and other people like that. So we’re going to spend three days like strategizing masterminding planning, see what everyone’s doing, what ideas you have, what’s working, what’s not working real estate and mixture of some other businesses. Then we’re flying back here for a couple of days. And then we’re taking a trip.
Speaker 1 (04:08):
Where are we taking a trip to? Oh, we’re going to go, just travel through Arizona and Nevada. And we’re going with some friends for a little bit. And we’re going to just rent a car and bum around to these amazing places out in the west coast. For those of you that kind of follow me a little bit, know that my wife and I did that a couple of weeks ago, we went to California and did the highway one trip we flew in and San Diego rented a, um, uh, what’s it called a convertible Mustang. And we did that amazing drive from San Diego to Napa valley actually spent a week doing that. And it was unbelievably cool. So we’d liked it so much. We’re like, well, let’s grab some friends and do another one of those touring trips.
Speaker 1 (05:01):
So we did. So that was cool. All right, well let’s, let’s get rolling guys. It’s Tuesday night live. Thanks for being here. We got something. We got a little bit of a mixture here today. Okay. Um, the topic that I’m going to cover with you all here, coming up here just a little bit is about money. I mean, you know, some of you guys are interested, like what’s the latest and greatest when it comes to money, what, money’s easier, what money’s harder, how do I get access to money and all that? And so we’re going to, I’m going to talk to you about that. I’m going to talk to you, uh, as it relates to you just getting money, I’m going to talk to you as it relates to like using our money here at partner-driven and things like that. So we’re gonna talk about money today, and if you’re in real estate and you don’t think money’s important, you’re like in the wrong business.
Speaker 1 (05:48):
Okay. I don’t care. What technique, what strategy? I don’t care what you’re doing there. Money’s important. And, uh, money’s important at different stages. You know, you may be thinking, oh, well, I’m, uh, I wholesale. Money’s not important BS because guess what? The people that are buying from you use money. So, uh, if you’re the only one who can identify deal, but you got no one in the backend knows how to structure money correctly. It ain’t gonna work. So money is important at all levels at all techniques and all strategies. We’re going to talk about that. Uh, but before then, I’m going to just a minute or so, I’m going to, um, bring some, I’m going to bring an existing partner on board. We thought that’d be cool. We haven’t had partners here for a couple of weeks, so we’re going to bring an existing partner on board, a really cool dude.
Speaker 1 (06:33):
And he and I are going to just chat for a little bit. But before we do that, I just want to start out the way I was doing really address you all, uh, that are listening to us tonight. And, uh, or that may be listening to us in a recorded format, um, somewhere down the road. First of all, thank you for being here. I know there’s many other things you could be doing with your time. Uh, I keep on moving my chair, cause that light behind me, like it’s like I have a halo, right? So, um, anyway, thanks for being here tonight. And uh, as always there’s two types of people like Tuesday nights is the only time we’re really do this, where we mix, where we do a general mix of the people that w that, that are here. Some of you all here, you guys are already our partners.
Speaker 1 (07:15):
You’re like all in, okay. You’re all in. And you’re part of the partner program. You’re part of the partner family. And we’re so glad you guys are here. And this is just another way for you to connect and reconnect with us. As a partner, you have the ability to connect with us privately on a daily basis. Obviously, as a partner, you have our technology as a partner, you have our infrastructure, you have our back office, uh, as a partner, you have access to money. If you needed it as a partner, you’d get help with construction as a partner, you’d get it all by the way. If you’re a partner here tonight and what I’m saying, like what I do, or I didn’t know I had this means you’re not plugged in and you need to plug in. Okay. Uh, w we’re starting to realize that, uh, as an organization here at partner-driven, that we offer so much to our partners, a ton of our partners don’t even know we have it.
Speaker 1 (08:04):
Like, we’ll be talking to somebody or I’ll be talking to someone and they’re like, oh yeah, I need this. I’m like, yeah, we have that. Uh, so as a partner, make sure your fully plugged into our system, our back office, our training, uh, our lead structure, our, our technology. You have to have to have two because you get it, you get it all. Okay. It doesn’t mean you have to use it all, but make sure you’re aware of everything we have. So when you do have the need for these tools, you have it, some of you all here tonight, you’re not our partners, but you’re checking us out. You are checking us out. You may have heard about what, what it means to be a partner. You may have already been talking to somebody in our organization about becoming a partner, but I get it.
Speaker 1 (08:50):
You just needed to get more comfortable. You may need, so get some more information. Uh, you may, you may need to just see who it is. We are like, is there really a Peter of eczema? Is there really a Julie? Is there other partners? You know, and these guys ever done a real estate deal themselves. So you guys are like a, I call it the dating stage with us, right. You’re just checking us out and I’m going to see we’re a good fit. I get it. Glad you’re here. Uh, this will give you a chance to get more comfortable with the model, but I will tell you kinda like, I know this comes out wrong every single time, but like, if you keep on checking this out, over and over, um, like either do it or don’t do it. Okay. Because like, it’s, it’s very simple to figure out what we do on our part with our partners.
Speaker 1 (09:35):
Okay. It’s like black and white. We literally partner on every aspect of real estate. Deal-making, that’s it? I mean, that is like, when people say, well, what, what, what do you get? I need to turn my hot, hot, hot, sorry about that. It’s so hot here. People say, well, what do you get? If you’re a partner? Well, here’s what you get. You get pretty much unlimited, uh, coaching and mentoring. As a partner, you, uh, get access to our latest technology deal driven, uh, as a partner we’d like, literally skip trace leads for you and pick up the cost of debt, which is in today’s marketplace. You got to have that, um, as a partner, let’s say deal, oh, you get all our back office support, like closing office support, contract, paperwork, support, you name it, you get it. Um, you get, if a deal let’s say needs functional money, it needs money.
Speaker 1 (10:28):
You get that. Our construction team even has the ability to help our partners fix them. We put them in a market, sell it, split the profits down the middle. So, you know, so you just kind of like, this is it. That’s what being meaning a partner is. And if you’re not yet a partner and you need to check us out even further than all you have to do is go to www dot partner-driven dot com. That’s www partner-driven dot com or for those of you that are going to be like, okay, I’m ready. Let’s roll. Let’s make some money. Um, tonight, uh, for hanging on all the way through our webinar tonight, I’m going to give you out, uh, uh, a telephone number of somebody that’s like going to be on standby, ready to get you started like his earliest tonight. And so that’s a, so that’s a reason to stay on.
Speaker 1 (11:14):
If you’re ready to get rolling, you will, uh, have access to somebody tonight. So if you’re a partner, you know what I’m going to tell you, right? You’re going to reset. You’re going to recharge. You’re going to recommit and you’re gonna take it up a notch tonight. And if you’re not a partner, thanks for being here as become a partner. Okay. Um, well, first of all, first of all, we’re going to, I want to bring what, like a real life partner on people sometimes you’ll say, well, are there really partners? I mean, is there a really deal that’s going on? Um, is there like action behind the scenes going on? Is anyone closing anything? Uh, so the resounding answer is yes. And believe it or not. Uh, well this is not even the, uh, this is not too much of a stress for anyone to understand this, but we’re doing more partner-driven deals than we ever have since like some of the first day of partner-driven model to where we are today, we’re do more now than we ever have.
Speaker 1 (12:01):
Uh, for two reasons, one, we’re just getting better. Like we literally are getting better that the partner model, the staff is, is getting, you know, better. The back office is getting better. So we ourselves at the partner driven lower again, better, but number two, it’s the world we’re in right now, right? It’s the pandemic that’s taking place out there and it’s creating motivation. So you don’t have to like, understand anything about real estate. But to know when there are certain pressure points, like hidden life, those are called motivating factor and motivating factors in person’s lives and people’s lives ultimately is what creates good deals. Right? And we have a manufactured one right now. We have a, we have a pandemic going on, right. Manufactured from a standpoint like eight months ago. And none of us even thought about this pressure point right before it is the motivating points for like, uh, divorces sickness, health changes, you know, kids moving in, kids, moving out, job losses, those sort of complaint, paint points, pain points that created motivated sellers. Now there’s one that’s just coming to from like zero to like literally spur, you know, spread like wildfire. Um, what’s another big pain point. So right now, for us as investors, we are there helping as many people as we can get out of situations. They didn’t want to be in. So it’s, it’s a, it’s a really good time to be an investor right now. All right. So that’s that I’m going to bring, uh, one of our partners on board, hopefully he sat patiently through this whole introduction. I just went to all their buddy.
Speaker 2 (13:37):
Speaker 1 (13:38):
A crank your camera on. If you can, there is all nicely. How are you? Great. You owe super-duper first of all, thank you for being here. Well, I think, I think my office just contacted you either last night or this morning. And, um, and so thank you. Thank you. Thank you for being here by the way. That is an example of the partner driven family that we’re building here. It’s like everyone elect, it sounds goofy. And if you know me, this is not my style, but it’s like literally everybody helping everybody in the partner, family, that’s, that’s one of the big, uh, you know, two dues, everybody helps. So we said, you know, one of my office called and said, Hey, do you mind jumping in for a couple minutes? And here we are. So all of them, we know you at partner-driven the rest of the world. Doesn’t know you. So tell us a little bit about Alton pre pre all this pre part and driven pre real estate and all that.
Speaker 2 (14:35):
Well, I always wanted to be in real estate and dabble around with it. About 20 years ago, had a few partners that didn’t pan out. So I kind of put it on the back burner until about four years ago, bought a cars, went through it, but kept working. And, uh, this winter, I decided this last winter, early spring, I decided now it’s time to do real estate and I just quit everything and dug into it, found you. And, uh, I’m at it. It’s a little slower and I like to have it going, but it’s going, and I’m very excited. So I’m going to keep doing it.
Speaker 1 (15:22):
I love it. So, uh, you and I have had, uh, offline conversation. So I, you know, I, uh, again, I know you, the staff here knows you, but from someone from your standpoint, been down this road before in real estate, even been down the strobe before, sounds like with some other partnerships. Right. Um, so then you’re not now you decided to reengage in real estate. So from someone who has experienced, like you did someone that he even went down the partner route, what initially, like, what was the trigger point for you to say, okay, this feels like the right organization.
Speaker 2 (15:59):
Well, money was part of it. Uh, I invest in real heavy in a, in a Helion company and I don’t have any cash. So I needed, I need a source where I could go out and start doing it without any money. And that’s, that’s why I joined you.
Speaker 1 (16:24):
That seems to be like the more partners, the longer we do this, the more that I talked to that seems to be like this, the number one thing that th th th that is the number one reason people get into this Ford. That’s like the attraction, you know, oh, I have access to someone else’s money. Talk a little bit about overall your experience. Once you got started, though, like what, what are some things that, that, that what’s the most, what’s the, what do you think our biggest value to you is now?
Speaker 2 (16:53):
Well, I was scared, uh, years ago I had more guts to do things, and now I, I struggle with that. And, uh, with you behind me, where I can get all, uh, all the paperwork, anything I need, uh, it just makes life a lot easier.
Speaker 1 (17:18):
That is exactly what everyone says. They maybe not a hundred percent of people. This is what an overwhelming majority of people, almost the, the, the, the care it seems to be. When people see us, they see us and almost immediately the value proposition for everybody becomes, oh, wow, I have access to, you know, Peter’s money. But once they get in and really start doing, like, I know you, and I just did a deal a week or so ago. And by the way, did you get your check yet?
Speaker 2 (17:48):
Speaker 1 (17:49):
It. Oh, by the way, Alton’s old school. You are literally, I’m not kidding you all. You’re the only partner I have ever kind of checked too. I think like, everyone’s like, give me a wire or a little, you know, pay all was like, uh, no, just email, just mail me a check.
Speaker 2 (18:06):
Okay. The next one, I don’t need the first one.
Speaker 1 (18:10):
Okay. I like it. I like it. Because now, as you’re saying that that’s exactly right. Some other partners, I have mail checks too. And that is exactly for that reason, because, you know, some people like to frame their checks. Some people want to take pictures of and all of that. But my point is this, that the initial attraction forever, almost everybody seems to be wow, access to capital. You know, I need capital in real estate. Everybody understands that, but what people really, really find the value in once they get in almost. And by the way, I was complimenting my whole team with that is the support they get, you know, the interaction with the back office, the paperwork. And I like the way it was interesting, the way you said it, you said it, um, you know, you used to be more aggressive. Well, let me tell you something real estate is one of those few businesses, or you don’t necessarily want to be, uh, aggressive.
Speaker 1 (19:04):
I was aggressive when I got started and you know, what had aggression got me, got me to zero, like, like I lost everything and almost made myself homeless. So real estate is one of those businesses that you do not want to be too aggressive. Real estate is one of those businesses that you want to just, you know, you don’t want to just shoot off the hip and things like that. So, uh, that, that’s probably a good thing. What, um, well, Hey, since we kind of brought up this check, let’s talk a little bit, tell me a little about the deal you just did. Tell me how you work together with the team, kind of what transpired, walk us through a real life deal. Okay.
Speaker 2 (19:38):
Well, I find the seller and, uh, I tried to negotiate with him on price and he wouldn’t move and he had a mortgage on it, and I know why he didn’t move. So I told them, well, give me a couple minutes. I’m going to try get on my computer and I’ll, I’ll check the numbers and the numbers look good. So I got my realtor to give me comps. And, uh, I wrote a contract right on the spot and, uh, for what exactly what he wanted for it. And, uh, got my realtor get comps and the numbers look good. So I sent the pictures and, uh, and the contract back to you, and they said, it’s a wholesale deal. And, uh, a week later we had more than we had it listed for.
Speaker 1 (20:40):
I love it. I love it. So let’s, let’s dissect a little bit, a couple of things you said. W how, how was the found,
Speaker 2 (20:49):
Uh, amplifying my business.
Speaker 1 (20:51):
Okay. So, uh, for those of you that don’t know, it’s a, it’s a relationship we have here with a very strong marketing team that alter news to generate leads, uh, from, and, uh, this doesn’t happen very often where like, literally knowing negotiations needs to be done. What do you think was the motivating factor for this, uh, seller to create that kind of a discount upfront? I mean, like, literally just boom.
Speaker 2 (21:22):
Uh, I’m not sure why he wanted to get out of it, but he, he seemed to be very motivated to, to sell his house, but he needed a certain amount, the, to walk away from it. And, uh, he was, uh, I think he had health issues and you want to move back to his mom’s house, uh, whatever the deal was. So, uh, everything just worked, worked out great.
Speaker 1 (21:51):
Okay. And, um, and by the way, all in follows our process to a T and then he’s just kind of rattling some things he does, but this is how we hear partner-driven teach it. Okay. You gotta have your right paperwork, by the way, the Udall, did you utilize our paperwork? I assume. Yeah. Okay. So the back office kicked you out of contract right before you went there. Um, you got it locked on to, what was it, what was the, what do we end up buying it for
Speaker 2 (22:20):
A hundred thousand,
Speaker 1 (22:22):
A hundred thousand, even I’m gonna write that down. Okay. So we put under contract for a hundred, then all of them found a follow, the partner driven process to a T because we always want to get validation in real estate, even myself, 22 years in the business, you know, uh, you, you know, you, you, you trust but verify, so everything along the ways to verify it. And so we utilize outside agents to do that. Uh, so the, you got an agent or whatever, or two to validate that the numbers were in line, right?
Speaker 2 (22:54):
Well, I, I talked to the atrium in Cleveland, Ohio,
Speaker 1 (22:59):
One of ours.
Speaker 2 (23:00):
Yeah. I can’t think what her name is now, but I called her and she said, well, how I would give you a realtor that I trust. So I got him. And, uh, and he was excited right away to do the, do the comps. And, uh, he didn’t know much about wholesaling, but I told him, well, you just, you just talked to partner driven, then gave the numbers, uh, that, or the emails that he had to do. And, uh, being, he was a friend of the realtor in Cleveland that works with you. They, his, uh, his expertise. So, uh, that’s what we used. And, uh, everything went real smooth.
Speaker 1 (23:55):
Oh. And you’re like, you’re like this ultimately cool, dude. You’re like describing a deal. We made money. You’re just like this and this. I love it. Um, but let me, let me point out something that a couple of things that Alton’s brought up, that’s huge. So one of the, one of the things that we pride ourselves at the partner driven family is that it’s really, it is a family atmosphere here. And just like any other family, the goal is to have everybody help each other. So what happened in this case? Uh, what Alton’s describing is we had another realtor because we needed a realtor to pre-list a property. We needed a realtor to give their opinion of the property. So we here, uh, and I, I do believe it was Tori from, uh, uh, from Cleveland who’s actually. So we connected Alton with, uh, one of our existing realtors that we’ve done deals with in the past that we basically boom, we trust, we feel great about, she then found, took the time to connect Holton with a realtor where he is. Okay. So he was able to, realtor was able to validate the deal. Now you said something, and I, I don’t want to put words in your mouth, but that the second realtor who did not understand necessarily he understood the numbers, but maybe not like strategies like wholesaling, did he get connected with someone in our office?
Speaker 2 (25:17):
Yeah. I told him he had to connect with you. Do you understand the process? Because I told him, I didn’t know quite enough about it to really explain it, but they will explain it to him. All he has to do is get ahold of your office. And, uh, and talk to Mary. I forget who it was. I told him to talk to you, but he did that. And, uh, he figured it out.
Speaker 1 (25:45):
Let’s see, this is another very big process in, in, and guys, I understand my point of view here. I’m bragging. I’m bragging on, on, on, on the team we have here. Okay. So what happened is this realtor who validated the numbers did not understand the strategy and even all, I mean, you said it yourself, so I’ll just repeat what you said. You didn’t even exactly understand how to explain the strategy we’re going to do in this deal. So the realtor was reconnected with our home office here with the local team. I’m sure you probably talked to Laura or Mary or ju [inaudible] or Ivan. I’m not sure who he talked to, but he talked to somebody on our team here. They explained to him the process of what it means to pre-list something before you take possession of it. And so we got it for a hundred. What did he listed?
Speaker 2 (26:36):
Speaker 1 (26:38):
- What did we sell it for?
Speaker 2 (26:44):
Speaker 1 (26:46):
It’s been a whole week. Wait,
Speaker 2 (26:48):
Wait a minute. Maybe it was 120 And then it sold for 120 to one.
Speaker 1 (26:56):
Okay. So we listed it for a hundred, put a I’m sorry. Bought it for a hundred. Got it. For a hundred listed for one 20 and got, well, I’ve got above asking pretty quick,
Speaker 2 (27:08):
Speaker 1 (27:09):
One week, one week. And that right there is exactly why the partner driven model works. Okay. Everybody supports everybody all a hundred percent critical to the process. A hundred percent. Okay. You got the lead. He ran with the lead. He identified a motivated seller. He executed brilliantly on the ground because that’s how real estate works. It’s still a local business. This is why we had partner driven the partners all over United States, because any way you slice it, real estate is a local business. Okay. Um, all of them needed us to help them execute. He didn’t mind doing the legwork, nobody in life who wants to be successful. It reminds doing the legwork. Only people that don’t want to do the legwork are the ones that really aren’t a success aren’t serious about being successful. So, so we here at partner-driven utilize our experience or knowledge or techniques, the rest of the partner, driven family for resources and context and all this.
Speaker 1 (28:12):
So we basically take our partners like Alton by the hand and in turn, walk them through the whole process. And that right there really, you know, th th this conversation that Dalton, I just have really is the part in doing model. This is it. You know, everyone needs everybody. It’s not just like our partners need us make no mistake about it. We need our partners. But the way I always finished that statement, and, you know, at least in my opinion, our partners probably need us more than we need them. So all super duper job. Congratulations. I’m, I’m, I’m really, really, I really am. I’m really proud of you. It looks like you’re in a car. So you, you pulled over to do this. So I really do appreciate it.
Speaker 2 (28:56):
I got another obligation. I got to meet a guy and, um, I told him that I’m going to be late. So I’m sitting in the parking lot.
Speaker 1 (29:03):
Oh, I will listen. I appreciate it. A ton. I’m going to let you go, but thank you all. You’re a super-duper dude. I appreciate you postponing or pushing back and appointment because of this. So I’m gonna let you go. I’ll finish off here. Thanks Dalton. Thanks a lot.
Speaker 2 (29:20):
Speaker 1 (29:20):
You. Bye-bye all right, guys. So that’s the partner driven model. Okay. It’s everyday people doing deals as a result of how, of what we bring to the table, the knowledge and experience the infrastructure like Alton was with a Tory and totally unrelated, by the way. I dunno if you guys caught this transaction, Tori, as far as I know, probably made zero money in this transaction. Okay. But because she’s part of the family, because we were able to provide things for her along the way and listings and other opportunities. Okay. Tori understands. That’s how a family works together. So Tori then, uh, developed or connected, uh, with another relationship who then was able to kind of finish off the deal. Okay. And so very, very important. There’s a lot of moving pieces to the real estate business, a lot of moving pieces. And if you don’t understand how to put them all together, this is, you know, sometimes, sometimes I, myself, dumbed down this business and I dumb it down too much.
Speaker 1 (30:31):
Sometimes I, I, you know, I, uh, many times you hear me describe this business. It’s like CDL, do deals, see, deal, do deal. No, not really. It’s like seed deal than climb Mount Everest, and then hopefully do a deal. See you next deal. Then another Mount Everest, and then hopefully do that deal. So anyway, thank you. Thank you. Thank you. Uh, it was good stuff. All right. So let’s go into the second topic today. I want to talk to you guys a little bit about money and the reality of money. And look, I understand just because you’re our partner, you know, then we have partners that like utilize this all the way through the process until, until it’s time to closing the deal. And then they do do do their own deals. They have their own money. They have their own financing. They have maybe access to some PRA uh, private capital.
Speaker 1 (31:13):
And you know what? We love that we, we, we don’t discourage that whatsoever. Some people think, well, gosh, Pete, if I’m a partners, I mean, I have to close every deal with, you know, well, Pete, what happens if I’m a partner and you helped me generate the lead, I tap into your like coaching and back office to kind of work that deal. And then I decide to keep the deal for myself, surely that cannot be allowed. No, it is. It’s absolutely allowed. You know, even, even our top leaving us some of our top partners that we’ve done tremendous amount of deals with have along the way, cherry picked and done their own deals. So my point is, even if you’re a partner, you should always understand the state of money. And obviously some of you all who are listening to this aren’t even partners, and you might be doing your own deals.
Speaker 1 (32:01):
And so you should definitely understand what’s taking place, uh, in, uh, in the real estate money. Okay. So what happened is this, when the pandemic hit, it literally flipped the whole industry upside down from a money perspective. Okay? Because real estate real estate has always been and continues to be, by the way, very heavily funded towards what’s known as hard money or private money and things like that. There’s really two types of money out there. There’s what’s called institutional money. And there’s, what’s known as like private money, hard money, family, office money, things like that. Institutional money is what, what everybody outside of real estate tends to use, right? That’s like a, you go to your local bank, you apply for a loan and you get a mortgage on the house that you’ve been able to then move into. Okay. That’s how institutions are basically their institutions, their banks, their mortgage companies.
Speaker 1 (33:07):
They’re what, like everybody knows a financing to be institutional money. 10, not to like investment world for a couple reasons. Not, not that they don’t lend to investors. They do, but that’s not their, that’s not their bullseye for one very, very basic, but a major reason institutions always have to look, look at it from a perspective of what happens. If something goes bad, right? Like what happens if this loan defaults or, you know, those, the customer starts stops paying money. Well, then that, that, that institution has to take the, uh, the property back, right? They have to take the collateral back now, a bank doesn’t mind taking back a house that a family just lived in, right? Because it’s probably a pretty house. It’s probably a kept up house and stuff. What do we, as investors go after we, as investors go after fixer upper houses, overgrown with weeds, things that need work, you know, you know, very specific type of real estate, a bank doesn’t mind taking back a pretty house because all they did do was put it back on the market, sell it, recoup, whatever they can recoup, hopefully the mortgage plus, and truck on make the next loan.
Speaker 1 (34:36):
You can’t do that with like a house that needs 40,000 worth of work, right? That house in order for you to really maximize its potential for it to really, for you to capitalize on, you got to fix it. Banks aren’t in the business of fixing properties. They’re in the business of lending on properties, but they’re not in a business of fixing properties. Um, and things like that. So institutional capital more times than not is used by conventional buyers for conventional what I call vanilla deals on the other side of the equation. Okay. On the other side of the equation, there is, um, this all other world, the investor world, the hard money, private money, you know, you raise your, you get some money from your parents. You write, you know, 20, 20 different ways of doing it. Okay. That’s totally different money. That’s totally different money.
Speaker 1 (35:31):
And this money is w when this money gets given out, it’s even a, um, um, it’s even underwritten. And in different ways, like when, when, uh, institutions on the right, they really look at the borrower. We want to hook up a good borrower, you know, engineer, doctor, accountant, attorney, when this money gets to be underwritten, it’s underwritten different ways. More emphasis is put on the, uh, on the, uh, what’s back in the deal, the property itself. Okay. The collateral becomes very, very important. Collateral is important here. Okay. Um, but collateral becomes even more important on the hard money side and things like that. And so, because it’s two different sources of money, the way it comes to banks, the way it comes to let’s say hard money. Lenders are two from two different sources. What happened when the pandemic hit, right? When the pandemic hit this private money, this hard money got flipped almost totally upside down, because what did the pandemic create?
Speaker 1 (36:41):
All of a sudden it created uncertainty. It created motivation, not just like individual levels. It created motivation at the highest levels out there, right? It created a need for liquidity, for a lot of institutions and all this. So what happened on this end? Why the, why the investor world got flipped upside down. When you understand how this money comes into play, like hard money and things like that, it almost always could be tracked back to almost the same sources. Okay. It might go through some stages, but almost always it is tracked back to the exact same sources. And those are like hedge funds, hedge funds, uh, in the end back, almost all legitimate, um, hard money out there one way or another. It originates at the hedge fund end. Well, how to hedge funds get their money. They raise it. They raise it from like wealthy individuals.
Speaker 1 (37:42):
They raise it from, from, uh, a high net worth people. Um, they just, you know, they raise their own capital. Okay. Well, when that pandemic hit a ton of these hedge funds got what are known as capital calls. Basically the people that gave them money to give to us as investors, they did what everybody else started doing. They start raising their hands saying, Hey, I need, I gotta get my money back. I know I gave you $3 million, but I need a back because I don’t know what’s going to happen in my own life and my own business, my own job. So these hedge funds had tremendous amount of pressure put on them, uh, w during, when the pandemic kit and still continue to do. And so what happens, everything, you know, the trickle down, right? So guess who got totally thrown upside down the frontline people, the people that are lending this money out, the hard money guys, they got totally flipped side down because before all they do is they, you know, they have relationships with hedge funds.
Speaker 1 (38:41):
They’re like, Hey, I got a deal here. You know, hedge funds are like, okay, I’ll fund the deal. And all of a sudden they’re like, okay, I got a deal here. And no one’s picking up the phone, a hedge funds. And even the hedge funds that stayed in the game totally, totally started changing the rules like before they would, they would lend, let’s say maybe with five or 10% now, now they want a 20 or 30% down, you know, before they would lend to somebody who has never done a deal or maybe done one or two deals. Now they only want to lend to people that have done 10 plus deals. And so to make a long story short, what basically happened, the pandemic flipped that whole industry out. I had friends that were in this industry, like for over a decade decades that literally got wiped out like that.
Speaker 1 (39:35):
I mean, literally they’re, they, you know, they had before the pandemic, they had 30 or 40 loans in a pipeline a month after a pandemic, not one of those loans funded. They had nothing. You come in and they’re backing. The funds were basically putting them through hoops. They were on that were just, you know, they couldn’t jump through. And in fact, I had a good buddy of mine call today. I’ve known, um, uh, this gentleman for 20, some years in this business. And, uh, and, uh, and he said, yeah, they, they just, even, even when they started coming back, somewhat, even when they started coming back, as, you know, things started settling, he said, Pete, it ain’t, it’s not even close to being back. So the reality is situation is for us as investors, although it’s very obvious, there’s more opportunities than ever, right? There’s more opportunities than ever there is.
Speaker 1 (40:31):
Believe it or not, the money is getting very difficult to do. You have to have more experience. You better have more out of pocket money. Some of their rates went up, you know, from like, you know, 10% interest to 12% interest. Some of their points went up. Some of them are now requiring reserves. So like, they’ll give you the money, but you better have you been able to show like eight months of reserves of payments in your checking account, right? And their underwriting got tougher. Like before, remember it it’s, it’s very much an asset based legit loan, meaning they look at the property. Well, now member institutions look more individually, private hard money, stuff like that. It looks more at the property. Now what we’re seeing out there is a lot of these funds, private funds are underwriting. Just like you’re buying a regular home. They want to see a couple of years of tax returns. They want to see six months of bank statements.
Speaker 1 (41:31):
They want to see reserves and this, so the reality for us as investors and anyone who’s investing right now knows this. Like, if you’re, if you’re doing deals right now, and if you borrowed pre pandemic and you’re borrowing post pandemic, unless you got some super-duper deal worked out, um, um, you’re seeing it, you’re seeing it, that things have changed. And so what that’s caused is not only for the hard money guys to be knocked out of the industry, it’s actually caused a lot of investors to be knocked out of the industry. Okay. A lot of investors got literally knocked out of the industry, um, because their money supply just ran out or the requirements became, you know, such that they couldn’t even get deals anymore. Okay. So that’s, what’s happening, um, a dead end. And, um, and that’s almost all short-term money, right? Because most, what do we, what do we do as investors we buy, fix, sell, buy, fix, sell, uh, or, or maybe we buy, do a little bit cosmetic and put it back in the market.
Speaker 1 (42:31):
There’s also private money and the, on the longterm, like if you want to rental, you know, most people think, well, if you want to hold on to a rental, you have to, um, uh, you have to go to a bank because only they make long-term loans. Well, that’s not true. Private individuals, private funds. They also do a short long-term Mo loans like 20, 30 year loans. That’s also been just totally flipped upside down. So that’s another area where, uh, that’s another area where it got tougher. Um, you know, you hear this, uh, let me tell you where it got easier, by the way, since we’re talking about money and money’s important roles, it actually got easier on this side, uh, with banks right now. Now it actually is easier here because it’s cheaper money, right? Interest rates are at an all time low they’re like, I literally heard a bank and there’s a big bank, like chase or B of a, I just read an article.
Speaker 1 (43:29):
They’re thinking of having like negative interest rates. Can you imagine that like negative, negative, right. But that’s like, unheard of. That’s like stuff that happens in foreign countries, but this money got easier. This money got easier. So what does that mean to us as investors? That means there’s more buyers for our properties. Okay. There’s actually more buyers for our properties. Um, um, and, and I mean, we have some partners that we’re doing deals with. I’m just constantly like, I’m like anything changed nothing. They’re like, no, we can’t keep the stuff on the market. You know, we bring a property out. Boom. If, because this money is really affected by interest rates, right. Long-term like 2030. And so now if you can get an interest rate, you know, three, 4% people all over the place are jumping in. Right. And they want to do that. So this money for us as investors, tougher, this money for people, we sell deals to got easier.
Speaker 1 (44:27):
Okay. Where else did it get tough? It got tough. Let’s say for, um, an average wholesaler, you know, some people say, well, gosh, uh, um, you know, on just wholesaling money, doesn’t affect me. Not true because your buyers, as I mentioned, this one, we just got started today. Your buyers use money. So for a lot of wholesalers got knocked out during this period. Why? Because they were utilizing the same buyers they were before, you know, before they were flipping it to this guy or this young lady and this guy and this young lady was using a hard money lender. Well, because the whole industry hard money industry got flipped upside down. All of a sudden their buyers disappeared. So a lot of wholesalers either got wiped out, kicked out of the business or are struggling right now. You know, they might be putting deals out there.
Speaker 1 (45:17):
You might be looking like, no, man, I’m watching this. Guy’s putting the exact same amount of flyers out. Yeah. But what you don’t know is he’s got a lot less buyers. And so he’s not closing deals as much. So it’s like, it’s like this whole mace, right? It’s this whole maze that, that got put together and you really have to know how to correctly navigate through this. This is why we hear partner-driven are so excited about being able to take conventional strategies. Let’s say a wholesale strategies. Okay. Um, we’ll take a wholesale strategy and actually flip the strategy upside down and bypass the investors that need cash, uh, that use let’s say hard money. All right. So w what does that mean? Remember, I just said this industry hurt a lot of wholesalers. Cause their buyers that they used to buy from them used to Bo would borrow hard money, hard money, got wiped out, or got really flipped upside down.
Speaker 1 (46:11):
So their buyers disappear. So they might be putting properties out there. They’re just not closing anything there because their buyers got wiped out. So we hear a partner driven, took it to the next level. We already actually were at that level already. But now the pandemic has really made this thing a bullseye, let’s say on our wholesale strategy, right. We have the ability, and this is actually what happened with Alton. I don’t know how many of y’all guys like caught what took place in his deal, but we actually had a real estate agent sell that property, sell that deal. Right? Well, we need to get to a realtor level that realtor is able to expose that property, not to your usual, you know, 50 or a hundred buyers. They’re able to expose that buyer, that property to the whole world. And here’s in the middle of all this pandemic, hard money getting upside down.
Speaker 1 (47:04):
But what guess what did not get put upside down? What actually is, there’s more of it than, than anything else. Cash. There’s been cash sitting on the sidelines waiting for something to happen. Like not necessarily this pandemic, but they were waiting for things to happen because what, when things happen, it clears the air. So new cash comes in, new cash comes in and droves and start buying, buying, buying, buying, buying, you know, you hear things like, you know, the real investors make their money when there’s blood on the street. So, because we hear partner-driven, we’re able to literally flip the wholesale model upside down and say, forget the first tier buyer that needs financing. We are going to put together finance. We’re going to go to the, to the person that just has cash. And not only we’re going to go to a person that has cash.
Speaker 1 (47:50):
We’re going to get a person that has cash. That one even buying before. These are these, these, these, these, these individuals, these investors, these institutions weren’t even on anyone’s buyer’s list. They weren’t even in existence. They weren’t even in the game. So you had to, you had to identify them at a very quickly guess what? There’s no quicker way to identify then, then through the MLS system. Right? So we, we here at partner-driven were able to pivot extremely fast. When this pandemic hit, when all our investor money got flipped all over the place, got all convoluted, started creating issues, but we flipped everything upside down because we understood that the model works, the real estate business was taken off. So we were able to, to strategically move things around and start doing the exact same strategy we were doing before. But now, do we get a much higher level in a way that nobody else was really doing?
Speaker 1 (48:52):
And by the way, guys, almost no one’s still doing it because in order to do things the way we’re doing them, now we had to inadvertently get prepared. Like we inadvertently some years back developed a totally different contract that almost any investor uses. Did we do it? Because when you there’s many pandemic and we’re going to need to change with it, now we did it by accident. We just like, you know what? We need to take our model to the next level. It just so happened when this pandemic hit. It’s like the stars aligned for us. The stars literally aligned from us. So here’s the reality as an investor right now, terrific time to be in a business tonight’s night, the night to explain that you should just understand that there’s motivation. Like we’ve never seen tremendous amount of pent up, by the way I, I people say, well, what do you think’s going to happen when he thinks is going to happen?
Speaker 1 (49:40):
Anyone that tells me what he thinks gonna happen. I tell him, I don’t know what’s going to happen like in the market or is it going to go up? Nobody knows. But if I was a betting, man, I’d say that it’s only going to the pent up the pent up, uh, motivation. It’s only going to get higher and higher. So from everything we’re seeing from the deals we’re doing from the contracts we’re putting out, it’s just like cruise, cruise, cruise, cruise, cruise. Um, so that’s reality. We got, we were inadvertently prepared for the industry to be flipped upside down. Number two, um, we here at partner-driven level, we’re also able to align ourselves cause member, guess what? My money sources got flipped upside down too. I was one of those investors that was going to the hedge funds to okay. But because of my 22 year history, because of the, because of really this cause of death, my 22 year history because of my, uh, performances before, because you know, they’re kind of the real deal.
Speaker 1 (50:41):
Then he changed the rules on me. So now, now it’s like, we were able to flip it upside down from the strategy point, I was able to retain all of the money sources. So my money, our money resources, sources that not get the legs cut from underneath him. So all of this to say, and I know for some of you, what I was saying is private. Matt got a little bit confusing. You know, what, what this hedge fund, private money, this, that, all this to say. I think I know, I know we hear it. Partner driven are more aligned for the future than we ever have been because of the numbers we’re seeing. But I really think we’re Mo more line free. Treat your future better than ever because of what’s taking place in the economy right now. It’s like, it’s like somehow by accident, we were able to put all the pieces together before all this crap hit the fan.
Speaker 1 (51:38):
We were able to come up with technology that could take an investor off the streets and allow them to build his business from home. I was able to develop relationships with money sources, who, who did not budge when, when, when everything got flipped upside down, but they budged with everyone else. We were able to put together paperwork, like contracts that allowed us to, uh, to, to allow us to do things that right now we’re absolutely capitalizing on. It’s like every step of the way, it’s like literally for the last number of years, we were building ourselves up. Oh, from the team perspective is an, an amazing, phenomenal team that we have here. You know, Alton could attest to that. Um, it’s like, we literally just, we weren’t, we’re building for this. It’s weird. Like who built stuff for a pandemic? No, it happens by accident.
Speaker 1 (52:32):
It’s totally by accident. I’m just going to sit here and take credit for all of it. It’s just totally aligned. And so the ultimate answer of how was money right now, and what’s the easiest way to get money right now. And what’s what, you know, how do you survive in today’s economy and world? I think we’re the answer really partner driven model is the answer for how to do this thing right now. It just really is. I’ve always preached that it was before this thing happened, but now that it’s taken place, I don’t know how an average and I don’t know how brand new invest right now could do their first deal, honestly, with so many, so many factors in play. I think it’s extremely difficult. It’s always been difficult. Now. We got to take it up a notch. Okay. I don’t know that. I don’t know the person whose money got cut.
Speaker 1 (53:19):
What’s it going to do? Because all hedge funds did it. It’s not like just one did it. And the rest are like, oh, we’re going to make it easier. No, it’s across. It’s across the board. Cut. So everything I was talking about today really happen at a global level. And you almost have to find someone at the macro level, like partner driven, like someone who carved out a little niche and you gotta align yourself. So guys, if you’re a partner recharge, reset, recommit, let’s go, gotta do it. You gotta just step. You got it. All. You have access to everything I was talking about today. Everything that Alton had access to, to do the deal that he did, you all have access to. So let’s get serious and let’s go to the next level. Okay. If you’re not yet a partner, this make a decision.
Speaker 1 (54:01):
I mean, why hang out? You know, it’s like, uh, it’s like, it’s like LeBron, James keeps on showing up and watching basketball. Nah, he’s going to play. I don’t think anyone just hangs out in real estate just to hang out. You know, it’s not like a sexy business just to pop on all these webinars. You know, most people that want to be in real estate, they really got to do it. They want to do it right. Nobody wants to just study it. You know, you study history, you study exotic places and real estate is not one of those things you just study because it’s just so fascinating you’re in it because you want to do it. You want to get the results. So I encourage you if you’re ready to get the results, uh, let’s do it. Um, if you need some more information about the partner driven model, just go to www dot partner-driven dot com.
Speaker 1 (54:51):
If you’re ready to go tonight, like literally ready to make a commitment to your future tonight. I want you to take down this number. Uh, it’s for Erica, she’s one of our team members on standby tonight, her number and all this I’m sure is going to be an all over your chats. Her number is 4 7 0 4 5 1 2 4 7 4 4 7 0 4 5 1 2 4 7, uh, two four, um, seven, four. And Eric is on standby. So guys as always, I enjoyed it. I loved it. Um, I love doing these Tuesday nights. I mean, I, I think it’s a, it’s a great, great way for us to showcase who we are both to our partners and to non partners, but be back the exact same time, the exact same place next week. And we’ll have another, uh, hopefully really cool, uh, topic for you guys. Uh, other than debt I’m signing off. I enjoyed it. Thanks guys.
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