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All right. Good evening, everybody. Good evening. Good evening, Peter Veksleman here. it’s Tuesday night and that means it’s time for Tuesday night webinar. Excited to have you excited that you’re here. Very, very fired up. That’s some good stuff. Talk to you guys about, we’re going to talk about some winnings and losings today. That’s a, that’s a topic that’s near and dear to me, you know, if anyone’s figured out the art of losing it’s obviously me, um, along the way, along the way also had a couple of wins. So that’s also very, very exciting, but we’re going to talk about losing today actually, and how you could learn from losing. Okay. So that’s going to be the topic of the night.
Um, if you don’t mind share with me where you’re dialing in from what’s up, Fred, how are you buddy? Um, what’s up Brad? How are you? Marietta in the house? We got Georgia in the house. So, uh, we have Michigan in the house. How are you? What’s up Karen? What’s up, Carl? More Georgia in the house. What’s up? Zach, we got Jersey and the house we have Connecticut. How you doing Dominica? How are you? We got Karen from Massachusetts. What’s up New York. We got west coast. We’re actually going to be going to the west coast. I’m trying to remember next month. Think we’re going to Newport beach or something like that. How are you Bill? Um, we got, wow, we got Australia the house tonight. Um, what’s up? Quechee? We have Texas. We have Austin in the house. That’s very exciting. We have Delaware in a house. That’s a very cool, super cool, um, St. Augustine, Florida, a place that’s very near and dear to me, we used to stay there when we were going after the Florida market, we kind of had pulled it out of, uh, Jacksonville, but we stayed, um, over in Jack, in, uh, St. Augustine quite a bit. So very familiar with that area. Very familiar with that place. Um, and, um, so that’s very cool. We’re going to be in starting here in just a minute or so, and, um, just hold tight and we’ll begin rolling.
All right. Let me know what you’re dialing in or zooming in from, I guess, no one dials in anymore. Right? That’s old school. Um, we, uh, everybody zooms now, right? Like a year or two ago. Who didn’t even, I didn’t think I even knew the word zoom. Definitely not the way I, now it’s not just a word. It’s a way of doing things, right. It’s like, um, I think it’s maybe part of the dictionary and when you look up zoom, it’s not going to be like zoom the company. Is it going to be zoom the verb? So that’s very, very cool. All right. Um, boom.
All right, guys, glad that you guys are here. Um, why Google that’s exactly right. Google just means search will doesn’t mean Google anymore. Alright, give me about a minute or so. And we’ll get rocking and rolling. We’re gonna be talking about some, a topic that’s near and dear to me, and that is losing. Yeah, literally today. We’re going to talk about losing and, um, how losing affects everybody. Okay. And why it’s important to understand losing and really in the end, how losing could lead to a lot of wins. So that’s what we’re going to get into here in the, um, just about a minute or so, but, um, well, anyway, guy, let’s rock and roll again. My name is Peter Vekselman with partner driven real estate investing. Thank you for being here. Some of you all here are partners here tonight. We’re glad you guys are here.
We got some good stuff that you could go out there and, uh, apply, administer, and work with today. Today, we’re going to be talking some mindset stuff, which in my opinion is the most important stuff. You know, to me, it’s the most exciting actually stuff to work with and talk about. So we’re going to be talking about some mindset and how mindset could lead you to success and how mindset should lead you to success. But before we get started, let me make a brief introduction for those of you that may not know who I am or what partner driven is. Um, again, my name is Peter Veksleman and what I am is I’m a real estate investor, a 22 year veteran of the real estate investing industry. Um, successful, I think by most rights, you know, have been added for so many number of decades, I’ve done well over 3000 real estate deals.
I’ve been through all kinds of stuff. Ups downs, market changes, market contractions, market expansions, appreciations. Depreciations easy money, tough money. COVID I guess you could say now. Um, and again, the, one of the most exciting things I could tell you is that not only my standing after 22 years in this business, um, but we’re doing quite well. And the reason we’re doing quite well is that we, we partner with people, the model, you know, the reason we call ourselves a partner driven real estate investment company is there’s actually meaning behind that. And we actually do. We literally partner with everyday people across United States and we helped them facilitate real estate deals. And how we do that is by providing what are known as pillars of success in real estate investing. So what we do for our partners across the United States is number one, we coach and mentor them.
Um, as you know, when you hear me say this day in and day out, this is not a business that you want to experiment with and shoot off the hip with and try to figure out as you go. Um, it’s got a tremendous amount of upside, but real estate also also, as you guys know, has a tremendous, tremendous amount of downside. So we wholeheartedly believe in the concept of coaching and mentorship and accountability here at the real partner driven real estate. So that’s one of the things we do for our partners. Number two, we help with lead gen we’ve have a proprietary lead generation system called deal engine HQ. And what deal engine HQ does is it literally markets for our partners on their behalf, literally in the, in the cities, in the areas that they live in, it helps them identify, uh, owners that want to sell their properties.
And when it does that at Phillips that lead to our partners, um, that’s a very, very important aspect of this business. Um, real estate finding real estate deals, you know, leach in very expensive, very difficult. And so we assist our partners and we do a lot of that for them also, uh, next we provide technology to these marketplace. If you don’t have technology, you’re gonna be, you’re gonna be left behind really is what I tell people. You got to got to use technology, just that the speed, everything is moving, the pace, everything is moving, the information gathering that is really needed. Um, so we provide that. Once we find the right deals, I provide all the capital to complete these deals with them, put them in the market, sell them, split the profits down the middle 50 50. And that is what is known as the partner driven real estate investing model.
We coach mentor, we generate leads, provide accountability, provide back office support and staff, uh, provide technology, provide capital. And then we share in the profits 50 50, uh, if you’re a partner here tonight, I’m glad you’re here. This is a way to kind of level up, go to those next levels. If you’re not a partner here tonight, then glad you’re here. And I assume you’re here because you you’re checking us out. You know, you want to join. You want to be a partner and you just need to get some more information. And that’s cool too. That’s super. And, um, um, so for those of you that are going to be ready to roll today, this is a phone number in our, in the chat. That’s 770-746-8585 that’s 770-746-8585. So if you’re ready to get started on your journey of becoming a partner, just call that number.
There’s a couple of key team members on standby and they will get you going. All right. So let’s hit the topic in hand today. Guys, the topic at hand today is very simple. People that in order to win, you have to learn how to lose. Nobody wins their way to success. People. It really literally on a daily basis lose their way to success. So I think we have everybody understands that concept. You know, I don’t think we’ve ever heard like Uber successful success stories. We’re just like, well, I started doing this and the next thing you know, I’m super successful. And I just don’t know what to do with all the money I’ve made in this incredible lifestyle. You know, stories of success don’t go like that. Usually stories of success go somewhere along the line I got started, I stumbled at failed. I hit the wall, I got rejected.
I went in the wrong direction, but I did stick it around, stick around long enough. And over a period of time, I became who I am today, a successful businessman, business woman, entrepreneur, and, you know, things are very different now than they were before. But I will tell you the one thing that most people do not realize is that even when it comes to not succeeding, even when it comes to failure, there’s two ways to go about it. One way to go about it is what kind of the society teaches us, right? Like you have to fail your way to success. And I talk a little bit about it. Actually. I talk a lot about that. Just the overall the concept of a failure. Uh, the concept of not succeeding is not something that, that you should be scared of is not something that should prevent you from keep on moving forward.
You know, just this whole thing of not accomplishing things and failing your way to success. That’s true. But within that whole premise, within that whole story, there’s something that a lot of people don’t understand, and that is this. You could work off your failures in inevitably, no matter what you do, you will have some failures, but on the side, the flip side, you can work off other people’s failures. You see just like as important it is to learn from your successes too. You know, I always tell people, accentuate things you’re doing well, capitalize on things that you’re doing better and better, you know, profit from when things are happening and things are going in the right direction. But at the same time, at the same time, when it comes to making mistakes, when it comes to losses, when it comes to like just hitting it, and it’s so much easier, if you just like watch other people do it and learn what not to do.
Right. It’s so true, isn’t it? It’s so true, true. That just like we learn from other people how to win, we can also learn from other people how not to lose. And you know, it’s a concept that very few people are taught. It’s a concept that very few people talk about because I think just overall society, we don’t want to, or don’t like to talk about losing and losses. We just kind of either a hide from them like, oh, if I’m losing them out or be learn to accept them, Hey, that’s part of the process, but there’s also this middle ground in this whole thing. There’s also a middle ground when it comes to losing. And when it comes to loss and that is this, yes, you shouldn’t experience some losing and some losses. Yes. You will experience some losing and some losses and yes, you should know how to interpret that.
Meaning that’s all part of the process, but there’s no reason that if let’s say whatever you’re doing takes, I don’t know, it takes maybe 10 or 20 or a hundred losses to finally accomplish success. You know, maybe you literally have to hit your head against the wall a hundred times. There’s no reason that probably a good portion of those, you could learn just fine from other people’s mistakes and not even do them. Right. So I always tell people just as like you want to study the successful people, it’s also been their successes. It’s also important to study these people and their losses and the things that did not work. And the thing that did go sideways and the things that did that you think are like, wow, that was a S you know, that like, wow, that’s something I don’t want to repeat. You know, think about this.
Like how many times have you made a mistake that you would be like, man, if only I would’ve known, if only somebody would have told me, if only I would’ve seen somebody else do it, there’s no question. I would have sidestepped this avoided this, not been broadsided by this not been derailed by that. So the car as a whole, it’s a very logical concept, right? You learn from successes and you learn from failures. But think about this, think about this. Like how many times are you actually applying that? Like when was the last time you truly, you know, try to like figure out, okay, this is sometimes, you know, I, my argument is this. Most of the time when it comes to failure, we still tend to learn from our own failures. Most of the time, when it comes to hitting your head against the wall, a hundred times, we tend to hit our head against the wall ourselves a hundred times.
Most of the time, when it comes to being derailed, we tend to derail ourselves, not really pay attention to those that have gone ahead of, you know, it’s like, this is, this is the analogy I like to learn. Let’s say you’re driving down a highway. You know, it’s um, uh, you know, you see a car ahead of you, maybe a quarter mile ahead of you. And all of a sudden you see the car hit a patch of road and go into a tailspin, starts turning around. Maybe you hit a patch of ice. Chances are that when you get to that spot, you’re not going to gun it. Chances are when you get to that spot, you will actually slow down.
Chances are, you may actually even come into a total stop before hitting that spot, right? So these are like natural things that happen on a daily basis, right? These are things that we, you know, in everyday walks of life, we kind of roll with these punches automatically. We don’t even think twice about it, but yet, but yet when it comes to being successful, we tend to pay attention and learn from the people that have gone ahead of us. This is what I want to do. And just assume, well, I’m just going to go ahead and just fail myself. And I’m going to make all the mistakes myself. And I tell you, and I tell you this to say, once again, yes, you will have mistakes along the way. You will have failure along the way. You will have missteps. You will hit your head against the wall, but there’s no question.
If you start to learning from other people’s failures, if you start to learn from other peoples, they’re hitting their head against a wall, you will shorten your pathway in your timeline to success. So I thought it’d be interesting today. And I was, I kind of thought about this topic earlier today. You know, like I’ll share with you a couple of things I did in this business that turned out to be like total bonehead moves. Trust me. Nobody taught them to me. Nobody said, Pete, this is the way to do it. This is like things that I bought myself wandered into. And I could tell you every single one of these, I think every single one of these, what it could have been avoided had I been smart enough to realize that I don’t should, I should not only study this success moves along the way. I should also study the fail moves, right?
So, obviously this goes without saying most of the things that involve failure in our lives, when did they happen? Do they happen like three decades after you’ve been doing something? No. Most of the failures that we experienced, most of the things that kind of, what does I call cut our legs from underneath us. Most of those things happen in the beginning stages. By the way, by the way, this is why so few people get to be successful because as mistakes happen, the road like a decade or two decades after you’re doing something, they get a lot easier to absorb. As mistakes happen down the road, they get a lot easier to absorb financially, emotionally stress-wise and all this. So unfortunately the worst combination of failure happening, you happens on the front end. Most of it. And guess what? A C don’t have an, a front end.
You don’t have as much room for error. Most of the people don’t right. Like when I got started in real estate, I had like zero room for error. So everything, all the errors I made, all the mistakes I met may cost me things I could never recoup and recover. Now I, when mistakes are made and mistakes are still made with us, you can’t get away from mistakes, but a lot easier to absorb. So the reason, the reason, so few people ultimately become successful in life is that there’s that worst combination. It happens early mistakes and most people early can’t handle mistakes at least financially. So let me tell you a mistake that almost every well, I can’t say almost every, but I probably can. It’s like when I got started in this business, I experienced my first major, major mistake. By the way, this mistake was not only a major mistake.
It costs me everything. All right, this mistake literally costs me everything. It costs me time, which you could say is the top of the ladder. It costs me money, which back then was at the top of the ladder. Um, it costs me reputation cost me sleep. It costs me. Part of my health is the distress that was involved with it. And it costs me pretty much whatever there was to lose this mistake was the reason for all of that. And that was the mistake of putting my belief of putting my trust into the wrong people. I can tell you across the board, the number one mistake. Well, I, yeah, probably be the top one or two mistakes. I see people make is simply trusting the wrong people, getting their information from the wrong places. Now, sometimes it could be argued. That’s an honest mistake, right?
Like there’s times I’ve gotten help from people or information for people that truly did want to deliver the right information, the right resources. They just didn’t know what the ultimate ultimate type of a mistake made in this way comes from people that when they actually take advantage of you. And I could tell you, when I got started in this business, I shared us with people to this day was very simple. I simply, I simply became a paycheck to almost everyone. Well maybe everyone around me. I literally became a paycheck to everybody around me. You see, when the realtors, when the realtors, when I got started, took me out to look at stuff they did not. They did not look at me as like, well, this guy’s going to be around for the next 22 years. He’s going to do thousands of deals. So let’s go ahead.
Let’s go ahead and let’s go ahead and get on his good side. Now they looked at me as a typical newbie that gets in, does everything. He can spends everything he got and then he’s out. So a lot of realtors, and by the way, back then my two main realtors looked at me. Look to me exactly like that. They looked at me as somebody that has a finite amount of time in this business. And because I have a finite amount of time in this business, they looked at me, somebody that needs to be taken advantage of and who needs to be basically used to make commissions up. So a beginner mistake, getting your information, getting your values, getting your comps from the wrong people. And I still remember, like right now, I’ll look at it like, you know, if you know anything about real estate, you know, the very basic fundamental of comps, right?
You need to have good comps. If you’re going to go D look, guys, I’ve been at this thing for over two decades and comps that will tell you, make your break you. And one of the basic fundamental principles of comps is this. You have to comp like like-minded properties, right? So like you would never buy you in the road, buy a house inside a subdivision, and then go outside the subdivision about a quarter mile of the road. He used that house as a comp. That’s just not how real estate works. If you’re buying houses inside a subdivision, you comp the properties inside of subdivision. And, um, I still remember, I still remember buying like maybe my third or fourth property, right? I remember by my third or fourth property and to this day, I don’t know why, but I still remember buying it inside a subdivision. And my realtor literally drove by that subdivision. We drove about a half a mile down the road and he showed me house. And he said, this is why you’re gonna be able to make half a million dollars on this deal.
See the problem when you’re getting started and why it’s so easy to make a mistake and why it’s so easy for somebody to take advantage of you is because you have no point of reference. You just don’t know what to compare it to. You have no point of reference is this right information or wrong information, right? A lot of times the people that are giving you that information in the beginning, are you kidding? You don’t even know if you could trust them or not. Right? So have, you know, point of reference, you have no idea if you could trust the source. So guess what happens, guess what happens? You make a mistake. You literally make a mistake. And that’s exactly what happened to me. Well, I remember what I did that deal bought that house, spent a tremendous amount of money fixing that house. And then when it was time to sell this house, and I thought I could get, you know, the half a million that my realtor told me, I realized back then, I learned that if you got a house inside a subdivision, your concept to come with from within that subdivision.
And that’s what an incredible lesson to learn. If you think about it, what an easy lesson to learn. But if you learn that lesson, as you go, as I did, I learned that lesson as I was going is I was already spending money, investing money, doing stuff.
Couldn’t go back. I couldn’t tell the appraiser, oh, well my bad on this one. So go ahead and comp my property, the way that house outside the subdivision is. And I promise you next time I do a deal. That won’t happen again. That’s not how it worked. So that deal in the end cost me probably about 40 to $50,000 of money. I remember when I got started, I fell into the ultimate prey, not ultimate ultimate trick used by contractors in this business. And here’s, and by the way, some of you guys are like, right. You’re like, oh, been there, done that. And here’s a contractor. This is what contractors do too. A lot of new guys like me, or maybe like some of you listening in tonight, they show up at a house that a newbie, oh, by the way, here’s the thing. Everybody can spot a new beef like today after two decades in this business, all I have to do is talk to somebody for 20 seconds and I could tell you newbie or savvy investor.
So, um, everybody could do that. Everyone’s got any kind of credentials, credibility in this business, any kind of history could spot a newbie. Right? So when my contractor realized I was a newbie, he played the old, you know, one of the oldest tricks on me in this business. And here’s kind of how it goes. He showed up to one of my properties that I was going to buy. Remember it, he wanted the job. Cause he’s like that Solomon, he ain’t going to be around for too much longer. So I better get as much of his work as possible and make as much money on him as possible because it’s only a matter of time before he likes so many others are out. So while the right, you know, while the wave is here, let me ride the Vekselman wave, right? So he shows up at one of my properties hand, uh it’s uh, let’s say it’s a $40,000 job. And he knows it’s a $40,000 job. And I’ve had one or two other contractors there. And they tell me it’s a $40,000 job. And all sudden this guy comes back and says, Hey, I could do it. I could do it for 20. Well, a couple things. What’s the initial impression once when it’s 40 by one guy and it’s 20 by another guy and you have no point of reference, you have no knowledge of which one is right or wrong. There’s no question that your initial impression, I want to go with the cheaper guy, right? Pound for pound. If something’s cheaper, if something is better, why not go with cheaper and better? Right? But then even as a newbie, I kind of had a little bit of a common sense. Not a lot. Mind you, but at least a little bit to at least ask the question of like, Tucker, I don’t get it. Well, these guys are telling me 40, and you’re telling me 20. Now at this stage of my career, it would be hard to push that one by me. I knew exactly where it was heading back then that game was very simple. You know what he said, Pete, I have economies of scale. I got a lot of things going on. I can buy stuff cheaper. I’ve bought and I fixed hundreds and hundreds of properties just like this. And I’ve been able to accumulate incredible amount of material from other properties.
Pete, my labor, my labor is cheaper because I know how to find the right labor. Pete, those guys, they look at you as a newbie and they don’t have any respect for you. So they’re jacking the price up. And when somebody that has no point of reference, nothing to kind of look back and like, and think through and say, well, gosh, I’ve been down this road before. What does someone like that do? When somebody says I can do the exact same thing for 20, that guy can do for 40 in my mind, I’d have to be an idiot to do it for 40. What he can do for 20. Because back then I thought, if he said 20, that means 20, right?
Guess what happens when that 20 is spent, still needs another 20 worth of work, right? It still needs another 20 worth of work and guess has to pay at that point, an inked, a hard money guy who gave me the loan because I told him I only need 20. It ain’t the contractor. That’s going to put another 20 out of his pocket. Because if it comes down to that, it’s like, sayonara, I’m out of here. It, anybody involved with that deal? Oh, well it is one person involved in that deal. Guess who? Me. Because we, you spend 20 and obviously what becomes a $40,000 job in real estate. If you want to keep on going, you got to figure out how to get the other 20. There is no like in golf, a Mulligan where it’s like, okay, it’s a do over. There is no like, okay, let me call my heart and money guy and let them know I need another 20. Because at that point he knows, he’s dealing with like, you know, danger, danger, an investor that obviously doesn’t know what they’re doing.
There’s no other sources to go to, to make up the difference. And here’s what else happens when the, when you did a deal based upon a $20,000 rehab, that turns out to be a $40,000 rehab. Guess what happens to your numbers? All right. Guess what happens when you’re off by 50% or yes, a hundred percent. In that case, you not only have to start figuring out how to spend your own money. You’re literally, you’re literally spending money to lose. Like you’re literally know that this ain’t going to work, but the problem in real estate, here’s the problem that the guys that make mistakes, the newbies get into the one thing we do realize pretty quickly that if I walk away from this disaster, I ain’t going to be able to borrow no more. So I’m going to lose my borrowing ability, which means I, in essence, shut my whole business down. So you figure out how to get that 20. And you literally pay your way to lose. Literally you pay your way so you could lose money on a deal.
And at that point, I could tell you pretty much everyone across the board, that, that touch base with me, like my hard money guide back then, okay, that’s a private lender. Here’s what, how he set up the loan. He set it up on three months, increments, meaning he was going to give me the money for a 90 day, buy, fix, and sell and return the money to him. Now, any of you guys have done 30, 40, 50,000, $60,000 rehabs. You will know there are no 90 day projects, right? When you’re buying, spending a decent amount of money, selling it, waiting it to sell, waiting to close, it takes longer net. But what these guys realized, I’m a newbie. I’m not even going to ask the right. I didn’t even know what questions to ask. I just said somebody back then and say, Hey, yeah, well, you could borrow money from us. I would just write it up for 90 days. Well, guess what happens in 90 days? Oh, they’re willing to renew the loan with another two points.
So boom, thousands of dollars shaved off my profit. Just like that. Just because I did not know what I did not know. And in that case was to ask a very simple question. What’s the length of the term and what happens if I go past the term, is it going to cost me anything else? And so I can tell you on and on and on pretty much across the board, every single person that saw me and came in, contact me with me from the very beginning, looked at me as nothing more than a short term, right? We already talked about that and be a paycheck. That’s the worst combination you could be in this business short-term or in a paycheck.
I didn’t realize back then that you cannot get your information from the guy that brings you the deal. See, back then I thought this guy’s bringing me deal like a wholesaler and honest flyer. It says $163,000 for rehab. I thought it was 160, 3000 to rehab. Like I thought he did all his due diligence. He had multiple contractors there. Most importantly, I thought he respected me. Like he looked at me as somebody that could buy a hundred properties from him. And how in the world would you screw somebody that could buy a hundred properties from you? Makes no financial sense to me, right? That’s how I thought he looked at me. But what he really looked at me is like, here’s a newbie and here’s a short term and here’s a paycheck. I didn’t know. Back then, you cannot get your information from the person that brings you to deal.
If a realtor brings you the deal and they give you the numbers, just tear up that piece of paper and throw it out and burn. It’s worthless. If a wholesaler brings you a deal and they give you the numbers, get rid of that information. Okay? If you’re dealing directly with the homeowner and they give you the numbers, it’s in one ear out the other year. I didn’t know that back then, to me, that was like, you know, it’s like, you’d go to car lot. And the cars for sale for 50,000 and you just kind of assumed that it’s around 50,000, right? That’s not how it works. In real estate. Somebody could put a $50,000 homes for sale for 200,000. And if somebody crazy enough to buy it and newbie right newbie, then they’ll sell it for $200,000. Real estate is like no other business. This is not a business where you want to shoot off the hip and try to figure out how to do it yourself and stumble through the things that come with it. See, back then, I did not understand how to set up checks and balances. Like literally had no idea how to set up checks and balances because I got into real estate to do real estate deals. But I realized after being in this thing for a couple of years, that it’s one thing to do a couple of deals, but it’s another thing to really make some money.
It’s very different. Then really growing a business. Again, nobody gets in the real estate to run a business. Mentally. We think about that. But really when people talk about real estate, what do we say? What do we, this, what, how do we approach it? We want to do some real estate deals so we can make some money, but it’s not just that you got to know how you have to be an operator. You have to learn how to be a business operator. Now, in some businesses you could learn how to become a business operator and no harm, no foul. Like the, like the example I like to use is if you’re going to be a dry cleaner, you can learn how to be an operator and make some mistakes along the way. Right? So you lose my t-shirt. Okay. You pay me 50 bucks. And I go on my way. There’s another number of other businesses like that.
But real estate is not like that real estate is not a business that you want to learn, how to set up a business along the way. Why? Because it’s everything to do with money here. So if you have unlimited amount of money, okay, just learn on your dime. As they say, if you have limited amount of money like I did, and how most new people did, this is a dangerous business to be in. So I remember I, I got started. I spent three years just flopping around. Didn’t make any money in the first three years, you know, then started coming out of the mess. I created for myself, started expanding. My operation, started growing my operation. I said, well, I need to hire myself a manager. I didn’t even have like a man, like a manager to help with the bird dogs that set up help with some callers that set up like next level up was, you know, at first you bring the people on, you work with them, you train them, you coach and you start seeing results in the next step beyond that is okay. Let’s bring somebody to do all that for us. Like a good manager. And I brought this guy along and I thought it was, Hey, things are going pretty well. Kind of rocking it out, doing well.
And what I didn’t realize, see, I thought it was the managers to responsibility to set up all the checks and balances within the company. But I didn’t take it to the next level. It’s my responsibility to set up checks and balances on my managers. So going forward, rocking and rolling, making things happen. That is terrible. No noise, like some weird things like the numbers started to be off. Now, remember when you have a little bit operation with some people and a manager, what starts draining your cash, right? Because all this stuff costs money and kind of things. Just, they just, I couldn’t figure what was going on. I mean, we were doing some, you know, some deals, but something was off. And I just, cause I was not an operator cause I was not a true business owner. I didn’t understand what to look for, what to focus in on.
And then I discovered it actually my partner and I discovered it totally by accident. One night we realized that we were spending money on marketing. We were spending money on people. We were spending money on leads. We were spending on everything. And guess what this manager was doing with some of our leads, he was selling the leads to our competitors. We figured that out by accident, like we literally just one night walked into something to realize that, oh my God, we’re, we’re in a tailspin and we’re paying for this tailspin, right? It’s like the airplane that falls out of the sky. But the passengers on board decided to drain the fuel, right? That is like asinine. Right? Well, that’s exactly what I was doing. I was taking a nose dive and I was paying for the nose dive the next morning. The next morning we literally had the cops at our office and escorted this guy out. And that in of itself then started creating problems for us. Cause guess what we lost, who was actually pretty good manager there. And he was ripping us off. So we lost somebody that had to be replaced. What does that cost time and money to things that are very scarce when you get started.
But because I didn’t understand how to operate the real estate business from a point of being an operator, I thought I was just in a business of buying and selling properties. I wasn’t at the learn how to run a business. There was another time I remember early on in my career where there was all these things going wrong in a rehab job. Like everything that can go wrong was going wrong in this place. Okay. We’re upside down already. I was spending money that I knew wasn’t going back into the property. It was just a hole, whole litany of things. And then one night I get a call from the neighbor of this house. And it’s like, when I say night, it’s like eight or nine o’clock at night towards winter. So it gets dark here early in Atlanta. And I get a call and he’s like, dude, sky’s ripping you off. He said, your pro your contractor, he’s at your house right now. It’s eight o’clock. And he’s literally got people walking in and grabbing your stuff and walking out, which means he was ordering material to our property and just selling it, you know, using some of it to fix it. But the other party was just literally just selling it off.
So I remember jumping in my car, driving about an hour away from that property. Thinking only one thing. I had no idea what I was going to do. I had no solution by the way. That’s another problem. Problem. A big problem is when you have a problem and you don’t know how to solve it, that’s like compounds the problem, right? It’s like having an unsolvable problem, but a problem that you can’t solve is like an unsolvable problem. And I remember I get into this property man, where I’m still fairly new in the business. I don’t understand how any of the stuff works. I don’t understand. Uh, um, I don’t understand how I’m going to handle this. I don’t understand anyone’s rights. I don’t understand how anything works. Um, and, and get to this house guys named Tucker. And he literally handcuffed. I’m not kidding. You I’m like this is he handcuffed himself to the porch of the house because at least the only goal I had that day was just get rid of him, just get them off my property. And so when I get there, the guy literally handcuffs himself to the house. And this is what Tucker proceeds to tell me, Pete, there’s a law that says that while the contractor is working on the house, listen to this. There’s a lot that says that while the contractor is working in the house, the contractor has more rights to this house than the owner. Now, to some of you, that sounds like the most preposterous BS statement you’ve ever heard. To me 20 some years ago. It made sense. It made total sense like, well, yeah, it needs work. It’s dangerous. And it doesn’t, we don’t want it to fall in. So during the rehab, the contractor has all the rights. I totally bought into what he told me. A hundred percent bought in what he told me. Having said that I also knew he was ripping me off. So what did I do to solve that problem? The only thing I could have done in my mind, I had no rights. So I couldn’t even call the authorities on him, but I had to get him away. So I said, Tucker, listen, dude, what’s it going to take to get rid of you guess what? He told me? You know what he told me, right, money. So I gave him money to buy supplies that he was then selling to other people. I then gave up all my authority, at least mentally to the property. And then I paid him to leave.
And the crazy thing about all of that, it totally made sense to me. Like to me, it was like totally logical. I didn’t think there was any other way out of that situation then what I did. And so you got to make a decision. Are you going to make the mistakes yourself and learn them in this business? Are you going to be bullheaded? Are you going to just do it yourself or in this business or generally in life, are you going to learn from other people’s mistakes? Right? I can tell you a mistake. We recently made just last year, we literally spent a hundred thousand dollars on a property and got ripped off literally a hundred thousand dollars spending. Now, the reason I shared this mistake with you is let you know that even after 22, over two decades in this business, thousands of real estate deals having probably the most tight things in place that I, that I know how to do and that I’ve seen other people do still to this day there’s times where things don’t work out and we lose. There is no such thing is air tight in the real estate investing business, it doesn’t exist. It’s a fallacy. It’s a, it’s a wish, but it never happens, but that’s okay because when you go down the road and you have money and you have resources, a you know how to fix them quicker, catch them quicker and you can afford to make them. And a combination of the three is what keeps you in the game. Having said that, I could tell you, as you’re listening to me tonight, this is really why I’m so proud of doing what we do with the partner driven model. We have taken a cumulative total of over two take gates in this business, thousands of real estate deals. And we have taken that experience. So we now share that experience with our partners across the United States. So if you’re a partner here tonight, listening to me, I’m telling you, you got a good thing going. And if you’re now where you want to be, it’s either a you’re not working hard enough or B you’re pounding the crap out of this. You just haven’t hit it yet. And that’s okay if you’re not a partner here tonight, but you have made this decision. That real estate is where you want to be. You got one of two choices, choice one, go get the crap, beat out of you and make no mistake about it. That’s exactly what’s going to happen. Option number two, see if we’ll partner with you and do some deals. Because if what we talked about as made in the deals that we do together, mistakes I’ll own. It. I’ll assume all the liability.
And if the deals go like the way, they almost always go in a good kind of way, then we’ll split the profits. So if you’re not a partner here tonight and you’re ready to join and jump on board, we have a couple of team members on standby. They’re at 770-746-8585. If you’re serious, if you are a partner here tonight and let’s level up and let’s get to those next levels, Hey guys, listen, I enjoyed it. I loved doing this. I hope you got a lot of value out of tonight. Cause everything we’ve talked about tonight is reality of the real estate investing business. So on behalf of myself, Peter Vekselman, and most importantly, all the incredible team that stands behind this and makes all this happen. I thank you. I appreciate you being here and we’ll see you next week. Good night.