[TUESDAY NIGHT WEBINAR]: “SINGLE FAMILY VS. MULTI-FAMILY”
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Peter Vekselman: 00:00 [inaudible] going on everybody. It’s a Tuesday night, 7:00 PM Eastern. We’re here or usual Tuesday night call except you’re probably seeing somebody is not here. And that’s Julie. Julie kind of, it’s funny. Julie literally takes like an over an hour a day to drive here and then over an hour, a day over an hour drive to drive back to her house, which had my, like in my opinion, that’s like crazy far, but she does a custie loves living out in the country and Julie literally lives out in the country a main light. I’m in our house a couple times. Is the country. Okay. Um, and, and so today it’s funny, she had to run out. She was doing an appointment somewhere and then by the time she got back in her car and like the huge storm hit and she was drenched. She’s like, Pete, I think I just looked like I just jumped into like a shower and stuff right out.
Peter Vekselman: 00:56 So maybe let’s start with short. She went back to her house, she was going to pipe herself in from the house. And a yard is, it’s just me and that’s what happens when you live in a country. So tonight it’s gonna be just me. I’m going to talk to you all about a topic that’s, you know, that really I chose to talk about anyways. So it’s a topic that, um, makes a lot of sense to me to talk about. Uh, and I think it would make sense to a lot of y’all because I think a lot of y’all are kind of faced with these kinds of dilemmas as some yellow may be faced with it right now. Some of y’all may not have quite ventured into the business mindset yet, but when you will, I promise you, what are we going to talk about today?
Peter Vekselman: 01:38 You’re going to come across. Um, I’ll also tell you today’s not really long topic because really the reality is when I tell you what I want to talk to you all about and they knew, you all already know that kind of the general concept of the topic. It’s like, for a lot of people it’s like a no brainer. It’s like, okay, yeah, I got it. So what else can we talk about? But it is amazing, amazing how many people are faced with the challenge that I want to discuss with you all today. And the challenge is very simple. When you get started in this business, when you’re venturing into real estate, do you go big or do you go small now? Conceptually, conceptually, you know, when you just kinda throw it out there just like that, everyone’s gonna be like, glows. Go big. You know, why?
Peter Vekselman: 02:24 Why hold anything back? We’re going to go, let’s go. If we’re going to kill it, let’s go kill it in somebody. You all hear me talk about that and some of the off somebody. All you even hear me use that phrase, let’s kill it. You know, let’s dominate. But the reality of it is when we talk about, let’s go big, let’s go, uh, let’s go all in. You know, let’s, let’s, you know, let’s never look back. Um, reality is, that’s more of a, um, number one, it’s more of a big picture thing that’s more of a longterm thing and a little bit of a conceptual thing. Okay? Because literally what does go big really mean now, what is all in really mean? You know, I could ask 50 have you all here tonight, we’re 15 or random people on the street, what that means. And to 50 people, they’ll give us a little bit different answer so that, um, oh, here’s Julie, can you hear me?
Peter Vekselman: 03:29 Cool. I literally just spent like five minutes talking about why you’re not on and as soon as I’m like transitioning into the topic, you’re on a high. So, but everything. I said, oh, well you’re not as still true. You live far away. You live in a woods and uh, and all that kind of stuff. But you know, I’m just kinda hitting topic of, of, of, of what we’re going to talk about today. And you know, what does the concept of go big really even mean to people, you know, what this concept of all in mean to people. Again, somewhat somewhat conceptual topics, some somewhat topics that we all agree on. No matter what it is that we do that some different. It doesn’t have to be real estate, you know, we could be a, it could be, you know, I’m moving into my house tomorrow and I’m going go, I’m going to go big in terms of I’m going to get everything moved in one day, you know, so going big usually means, again, different things to different people, but in the end that means kind of like I’m committed, I’m ready to do whatever it takes.
Peter Vekselman: 04:36 I’m, I’m in it to win it and all this. But then there’s this other concept or this other reality real estate. Do you go to small or do go big? Not from the effort standpoint, but from a deal standpoint, you know, it’s like, okay, I’m all in, I’m, I got capital, got some knowledge, I got a team, I got all of this, and so why do a deal that’s tied into buying a house or do I do a deal that’s tied into buying a 100 unit apartment building? And again, this inner self. When you asked a question like that, it’s, it should be pretty evident. You know, when you kind of, when I phrase it like this, I think most people listening tonight or in the future will be like, well, yeah, Pete, I think of you’re just getting started and it’s your first deal. You go in and you buy a house, you don’t buy an apartment, but guys, this is common sense is that is your will be shocked and surprised how often we hear here, you know, people let’s say calling us with potential deals are people calling us with potential opportunities or people calling us with deals they’re doing or opportunities they’re looking at, what we’re not even tied in at all.
Peter Vekselman: 06:02 And it’s like, you know, I was asking a couple of key questions in the beginning. Um, and one of the questions is actually obviously bought the deal. Okay? And then I always stop in there. I kind of asked, well, how long have you been doing this? Like if somebody says, Look Pete, I’m buying a $30,000 house, I’m not going to care how long they’ve been in real estate because you know, you can’t handle a $30,000 house. He shouldn’t be in real estate. Okay, that’s like probably the bottom of the barrel in most markets, but you know, if someone’s calling me with that $300,000 deal or a $3,000,000 deal and they’re describing to me a $80,000 rehab job and you know, hundreds and hundreds of thousands, if not millions of dollars acquisition, I am going to be curious, well, how long have you been doing this for? And it’s comments sense as it is when I say if you buy a 100 unit apartment building on your first transaction or do you buy a single family?
Peter Vekselman: 07:00 Home was common sense is it is amazing what happens to people when they get in this business and they start getting what I call kind of. They’re shy kind of shiny eyes chasing these shiny objects out there and a lot of times people lose all sense of reality in this business. Unfortunately in one sense of reality, people you lose is that this is not a like a easy business to do. I know, you know the common, the common comeback for most people that are doing these. We’re trying to do a deal too big for them is, you know, well, yeah, I can make more on this deal or I got money to buy the deal or you know, might not need as much rehab as a, as you would think. I mean, you know, they’re just kinda like,
Peter Vekselman: 07:51 they’re, they’re, they’re kind of like bumpers to absorb the impact of what they’re saying. But guys, let me tell you something is common sense as it is. I’m just going to, I need to, I guess, verbalize it here tonight. When you’re getting started as business conceptually, you want to go big from a commitment level reality from an infrastructure, from a purchase level. You want to go small. You don’t want to get in and buy the most expensive house in your, uh, in your city. You don’t want to buy a commercial building as opposed to a house. You know, if you want to buy a, a multiunit, you know, you’d rather buy a duplex or triplex, you know, not, uh, not, not, uh, not, not authority. Door building. See, there’s from the onset, from the onset, it’s should be common sense. Why you want to do this?
Peter Vekselman: 08:51 Well, let me tell you something, it’s more than just a common got it kind of thing. It’s more of a. most people don’t realize what is it really entailed and the deal and how many things can go wrong and how many issues can arise and here’s what happens when you’re buying bigger stuff. And guys, you know, I’m kind of framing this from a standpoint tonight. If you’re a beginner investor, let me tell you something. The reality is some of y’all have been in this thing for years and you still need to be buying smaller stuff. Some of you all have been doing stuff for a very long time and you still need to be doing smaller stuff and so the reason eight times, it’s not necessarily just knowledge base, which is like no brainer. Let me just tell you something. Real estate is one of those businesses where you don’t necessarily want to like spend all your time learning on your mistakes.
Peter Vekselman: 09:52 I mean that’s what anybody says, just jumping. But guys, this is why we’re so successful in our partner driven coaching program because we allow you. We literally do allow you to just jump in, head over heels, all in balls to the wall, do a deal, and we’re partnering with you and we’re making sure that things are done the right way, but I could tell you if you want to like start weaving baskets for a living and you think that’s a pretty cool thing, you can learn as you go. I mean, what’s the worst thing you’ll do? You’ll poke yourself in a finger and or maybe you’ll make a bad design. I’m telling you, real estate, you could literally sneeze the wrong way on a project and lose one grant. And so what happened? Peter? Go ahead.
Julie Muse: 10:39 Just one thing I’ll add is we’re taking calls. It’s not just the purchase price. You know, I get a lot of calls where people won’t want us to do the doors where the Rehab is somewhere between 120 to $150,000, right? Just the budget alone. When you’re leaner, your rehab budget is somewhere around 30,000. If you make a mistake, probably worse.
New Speaker: 11:04 Okay.
Julie Muse: 11:05 Face scenario, going to be totally into the Rehab for wouldn’t you say, even if you made a mistake, I agree. I started getting into that are a $100,000. You make a mistake. Mistake 150 to $160,000. So the bigger the rehab budget actually the harder the fall is, the lower the rehab budget, the easier it is to collect yourself and get yourself back on track, you know, um, that’s, that’s Kinda, you know. But then my experience
Peter Vekselman: 11:42 and you know, if you think about it, that is a true principle that can be applied all the way across the deal. You know, the bigger the deal, the more that backhand hurts too. You know, one thing I’m buying a house, like you said for 30,000 and I want to sell it for $50,000. Well if I’m off by, you know, five grand, well it’s not perfect so I don’t make them like make my 15, you know, or let’s say I’m buying a $30,000 house and I think I’m going to make, you know, sells for 40 and let’s do when I’m done. I can’t even sell it for 30. I could only sell it for like $25,000. Well, if I’m spending $30,000, chances are I can absorb a $5,000 loss. Now let’s say you’re into a $3,000,000 deal and you think you’re going to sell it for like five or $4 million and all of a sudden that soccer comes in at two point seven or swipe.
Peter Vekselman: 12:35 It’s one thing to absorb a, a $5,000 loss on these bigger deals. You guys, bigger numbers everywhere. You got bigger numbers on construction. So big mistake on a construction can throw you sideways. You got bigger sales numbers, steak on a sales side the other way. You’ve got bigger fighting instinct numbers. You know, if you’re financing a house for $100,000 and you stay for next year, a couple months, well okay, so you got an extra two to $3,000 of payments that you paid. You got a $3,000,000 deal and you stay in there for Mexico. Couple couple of, uh, you stay there next to a couple of months, you’re going to be over your head tens upon tens of thousands of dollars. So remember guys, you know when you’re looking at deals, this common senses, this is when you’re kind of perfecting your craft. When you’re learning, when you’re getting started, when you’re somewhat of an amateur, not a pro, you want to start with smaller things because the profit may be lower.
Peter Vekselman: 13:41 Although interestingly enough on a smaller projects, a lot of times the margins are actually larger than they are in a bigger projects, but the dollar amount obviously will be smaller. But the, what you’re trying to have, what you’re trying to avoid in real estate more than this is what I was to watch people guys as important as it is to make money initially real estate, it is even more important not to lose money. You know? So he ended being. I know everyone wants to make that killing, you know, in the beginning, man, I want to make my first 50 grand. I want to make my first 20 grand. I want to make whatever it is. Guys, I’m telling you, for those of you that work with me directly, you know what I’m always talking about. I’m not, I’m never accounting dollars and the initial couple of deals on initial couple of deals I’m seeing one working with, but from the initial couple of deals standpoint, I want to make sure in what you want to make sure on those first initial couple deals.
Peter Vekselman: 14:41 We want to make sure things like infrastructure is in place. You know, you want to make sure things like your proof of concept is correct. That what you’re doing is actually working in your marketplace. You want to make sure that you understand how to handle some mistakes because you know, all the way through the process, especially in the beginning, you’re going to actually experience a lot more challenging is a lot more mistakes. So those are things that you want to be thinking about. You know, I always tell people, you know, in the beginning people are like, you know, they’re, they’re calling about a particular deal that they want to do and they want to get my opinion on it. And, and, and again, I’m looking at it from, uh, from, from, from a financial standpoint because that’s, you know, when you’re doing this for 20 years, when you’ve done thousands of deals at this point in my level, that’s really the only numbers that matter our financial numbers.
Peter Vekselman: 15:33 But I could tell you when you’re being, when you’re a Newbie in this business, when you’re somewhat getting started in this business, when you haven’t done a lot of transaction in this business, you want to look at it from a financial standpoint. There is no question that, that, that is the key standpoint to look at it. But you’ve got to, got to, got to also look at it from the size of the transaction. And so a lot of times people say, well, what’s Pete? You know, a lot of times when I talk about this topic that the most common question that gets asked as well, what’s the right size of the deal? Because even even when you talk about small, medium, small, large in real estate, that’s like Bam, that’s all over the place. You know, you’re in Manhattan, small as big. You know, when you’re in Detroit, big, small, so a lot of times, you know, it, it, it, it varies by market place and all this.
Peter Vekselman: 16:28 But when people ask me constantly, well, Gosh, if given, recommend I do this, what, what, what size of a deal should I do? What I always tell them, is this the best way to understand or the best way to evaluate what kind of deal that you should be doing, what kind of transaction you should be doing is simply look at your own personal market. So like here we’re in Atlanta, we’re in, uh, you know, our average marketplace, a dollar amount here is about a quarter of a million. Okay, well, if I’m just getting started in real estate, I’m definitely not going to be above a quarter a million because that’s the average. I’m probably going to be, you know, a quarter of the, you know, so, so that means the averages quarter a million, you know, I probably don’t want to be too much above 100, maybe $120,000 when I cut that in half about.
Peter Vekselman: 17:18 And that’s where I want to do to get started because remember in the beginning guys, when you’re looking at deals and when you’re evaluating deals and when you’re doing deals and you’re making money, you’re making profits. It is not just about the money and the profits, it is so many events. And I tell you, in my opinion, the key component, the beginning is to make sure you’re around for the third, fourth, and fifth deal. I mean guys, I’m going to be on [inaudible]. There’s some partners that we’re working with right now that we’re fired up over, but we were more fired up over a while back. There’s partners we’re working with today that we’re supporting 100 percent, but we were way more into them awhile back
Peter Vekselman: 18:04 because, you know, we’re just kind of seeing how they handle things and we’re seeing, you know, are they tough enough to go on or they have, do they respond to challenges that they just pretty much gets swept off their feet when things hit the, you know, when, when crap hits the fan, you know, I didn’t like that rather than the water that just gets bounced all over the place and well, whatever happens, happens or well, that’s just how my marketer, that’s how my realtor is and all this crap now. Now the key in the beginning is you want to want to make sure you’re around for yield three, four, five and deal hundred. You know, let me tell you something. I got started as business and those who have heard my story, you know, 20 years ago I got started and I did something totally opposite of what we’re talking about today.
Peter Vekselman: 18:50 Now, I didn’t do it from a standpoint necessarily an individual deals, you know, I didn’t buy it necessarily. Um, you know, one, two deals, but what I did do and how I did screw myself up is I bought about six or seven of them at the same time and so my total number was well over a million dollars. And again, when you’re into those big numbers, guess what crap happens. And when you’re into a small numbers, it’s easier to handle crap when you’re into the bigger numbers, it’s a lot more difficult to handle crap. And guess what? I didn’t know how to do it. I didn’t know how to withstand it. I didn’t know how to make the right decisions. I didn’t know who to talk to, I didn’t know how to get advice. I didn’t have a mentor, you know, on and on and on and on and on. As a result of that, I crashed. I literally every single one of those six deals I lost money on. And in the end, when you kind of, the carnage that I created when I created that time is broken relationships, you know, broken promises,
Peter Vekselman: 19:51 tremendous loss of confidence, huge stress levels, and tremendous loss of money all went through the process. Now the only reason that I’m still here today, 20 years down the road, as I was able to absorb that, not necessarily financially, but really just kind of just being tough enough, you know, I lost it. There was no back and I didn’t have necessarily that money to replenish it with other money, but I just had this kind of attitude that I wasn’t going to quit and in, you know, I’m going to just tell you, most people don’t have that. You know, most people quit this business because it’s raining outside. You know, most people quit this business because, oh, well, uh, I mean I heard some crazy things Julie told me today, like, I shouldn’t even repeat it, but it was just like, you know, the excuses people give not to be successful in this business are like so beyond crazy.
Peter Vekselman: 20:46 You know, my wife isn’t supporting me, you know, I got a baseball game, I got a team I’ve got to go to. I don’t have enough people to call on. You know what I mean? It’s just like crazy. So the reason I share my experience, people is really just to let them know that most people cannot let stay. What’s going to happen to you all. If you’re getting started in this business, you are going to make mistakes. You’re going to crash and burn along the way. I promise yet. And most people just will not be able to withstand what I stood. I shouldn’t have been withstood it. I lost everything I had. Hell, I slept in my car for awhile. I, you know, I ate breakfast and hotels that offered free food and no money to speak of, you know, I really didn’t have too many support mechanisms, you know, Yada Yada Yada.
Peter Vekselman: 21:34 You know. So I’m just thinking, you know, I had some guy yesterday, you know, he joined our partner driven coaching program and then email me last night said I talked to some local and he said it’s not a good idea. So I’m out. Really, you’re going to get on your future. You have to give up because really that was just an excuse not to move forward. You know, somebody, he was going to work with some local investor. It’s not like all of a sudden, you know, he’s now 45 and up to 45, he’s never talked to anyone in this business and all of a sudden he signs up with us and he starts talking about people, right? That was just a bs excuse because you know he got scared and a little bit. So the reality is the reason you want to stay small, small deal size in the beginning is because most people cannot withstand when crap hits the hits. The fan of the two high level might not be able to recover financially, emotionally, physically, structurally, and when all those cards started tumbling down most of the time and just everything crashes. So you know,
Julie Muse: 22:37 you know this that you’re talking about. So not only is it the crash and burn and all of that, what I want all of you guys to imagine is it’s think of the buyers in America. What population of buyers in America, by the most properties. Let’s Shell stew on that for a minute. Do you think it’s the super wealthy buying million dollar properties? No. Upper middle class buying $700,000 properties? No, it is regular blue collar areas and blue collar people buying all of the buying most of the inventory in America, so not only do you not want to get into a half price deal, but as he said, you want to get it up and sell it fast and you’re just, you’re also. It is so much larger in these blue collar areas, impulses that you can afford to buy houses because when you’re buying and fixing and selling homes you’ve got killed or the people that are buying these houses so you can take your chances and sit on a 700 or half a million dollar house for a year and you’re like, I’m under the deal because I can make $150,000.
Julie Muse: 23:59 But as Peter said, as time goes by, your profit’s diminish. Follow other people do those deals. You know, even though we’ve done $3,500, over 3,500 bills, my favorite meal is purchase price of 69. Rehab a 25 arv one slash 29. Like, I will do those every day of the week and I know Peter, you, you love those stills too. Um, and, and you know, it’s as far as given up guys, any of you that are in this business that everyone looked to give up, I can tell you I don’t understand that philosophy. Um, I just, I’ve never had the opportunity to give up on anything you know, so, so stay, stay tight, you know, on your numbers and understand, you know, the actual kind of like I mentioned with the blue collar buyers, blue collar areas, you’re going to find more people in distressed situations and look for areas to.
Julie Muse: 25:05 You’re going to. It’s going to be very unlikely that you’re going to go knock on a door on a million dollar neighborhood and find someone to let you buy their house for cash. You know, some of you may disagree with me, but people that the regular people that are out there are going to have more situations that you guys and we can help them with. We don’t just do this business to make money. We’re in this to help people want to make it a win, win for both you and the people that we’re dealing with and you’re going to be a lot more when you sit across from the kitchen table, from someone that lives in the blue collar area. I call them the regular people because in my mind they are the regular people because that’s how you know what definitely what I’m around, but you know that’s my two cents on that, but that’s part of being in one of our one on one coaching program.
Julie Muse: 25:58 When you’re getting any market pager and I will work with you to determine where these blue collar areas, where these hodgepodge areas are in your marketplace so that you will exactly where to go find deals so you’re not just shooting in the dark. You know you don’t. You don’t want to do that. Also, most of you live in in towns to where you don’t have to go outside of your town to be. The worst thing that you can do is get started in this business and say, well, I want to focus on three or four cities. When you go and you do that, you’re extending yourself too far, be brilliant in your area, build relationships, find the hodge podge, a blue collar areas, and you will be successful in almost any medium size town in America. Even a lot of small packs.
Speaker 4: 26:56 Okay?
Peter Vekselman: 26:57 Very true. Very true. You know when Julie’s really talking about is ease of use, you know, it’s ease of use. I mean, you know, it’s like let’s say you want to
Peter Vekselman: 27:10 by sports car, you know, one thing is you can go and buy yourself kind of a, a what? A Roth. Again, one of those little girly cards and it’s easy to drive and it’s kind of sporty and it’s a, it’s easy. It’s another thing you can go out there and buy yourself a full blown out, you know, I don’t know, car, a Lamborghini and guess what? People get those cars because once you lose a little control and once you do something crazy with the urine doner well, same thing in this business and Julie is very valid points here is just overall finding ease of evaluating, ease of inspecting, ease, closing ease, the financing, ease of fixing, ease of selling. Isn’t these kind of, you know, blue collar, smaller areas, small areas. What size of deals. Now I’ll tell you guys
Peter Vekselman: 28:06 what we’re talking about today is entry points and entry levels and the size of deals do you want to do and stuff like that. But I will tell you that holds true even as you move up, move up the food chain in this business, but change up the techniques and strategies. Let me give you an example. Sometime, you know, many years ago now I decided to get into land deals where I was buying land, subdividing it and selling it off to a bigger, uh, the guys that were taking him to the next stage, the builders and stuff like that.
Peter Vekselman: 28:40 And I still remember that when I got in that, that actually I was evaluating two pieces of property, my first two initial, you know, redevelopment Kata deals, whereas evaluating, you know, this deal versus that deal. And I still remember guys, this is like 15 years ago, maybe 12 years ago, and I literally remember I made that decision almost exclusively by the size of the deal. I mean. And, and guess what, as I got into that deal, here’s one thing I figured out, I figured out I had the wrong rezoning attorney. And guess what, if you’re kind of getting into redesigning stuff and you know, that is like make it or break it. And can you imagine like it’s like going into a house to fix it and realizing that the contractor you hired is a crook. And by the time you realize that you’ve already paid them 100 grand, that’s like too late.
Peter Vekselman: 29:35 Well, guess what, when you’re in a land deals and they need land that needs to be redeveloped, that starting rezone, that rezoning guide, that’s going to take it through the process. This is critical. Well, once I got the right one, after my first deal, I then went on and did a number of other very, very successful larger deals. I can tell you the same thing holds true when I got into conduct convergence. When I got into condo conversions, I remember the very first conversion I did had like a seven, eight mini units, six, seven, eight units and uh, and you know, conduct conversions. They’re big complicated deals. I mean you have to Redo the bylaws, you have to go through visions of past tenants, you know, you have to put us a hla associations in, you have to read you everything. Like even the wall where you done between units.
Peter Vekselman: 30:33 I mean it is a major, major undertaking. So I still remember looking at that deal and we went in with some partners and I remember back then like talking like we had like six or seven partners and the whole building only had like six or seven or eight units. So it’s like you, I had a partner for the unit just about, well, because I had a contractor, I had a money guy, I had a developer, I have a condo conversion expert guy. And guess what, that first project I made zero money on. I mean literally zero money and I think it took like nine months to execute. But what I did, I prevented myself from losing money, right? Because I had the right team in place. I also, we were also able to absorb everything because it was a fairly small, at least as far as conduct conversions go there.
Peter Vekselman: 31:22 The a small, smaller kind of project. I didn’t make a million, didn’t make half a million, didn’t make 100 grand. Pretty much means zero in the end. But what I did, which is what I needed to do on that first one or two deals I learned and I understood and I figured out who the right partners to work with the wrong partners were, who I needed, who I didn’t need, and then went on and did the number of other ones. You know, when I got into private Lynn, um, you know, the first go around, when I got into the private lending, I started small. I raised $10,000,000. Okay. Now in the lending world, that’s not a ton of money. I mean, I know that 10 million in of itself has a lot of money, but in the lending world, you know, uh, ideal could easily eat up a million dollars, you know, you know, one deal can take 10th of your, a 10th of the, of your money, so 10 million, especially when you want to do it over an extended period of time is not a tremendous amount of money.
Peter Vekselman: 32:20 But when we initially raised that, you know, 12, 13 or 10 years ago, whenever I got started, we raised a small fund of $10,000,000. When knew we could handle it, when you would manage it, we knew we could absorb any losses. They came with it. And guess what? Now when I got into lending on my around now, I didn’t raise $10,000,000. I went straight to the hedge funds that have billions of dollars. Okay? Because I’ve been through the process before, I’ve been through kind of what happens when a loan goes bad. I’ve been through what happens when you, uh, when you got a, a potentially fraudulent borrower. I’ve been through the deal when, you know, when you’re evaluating the deal and you just know that contractor screwing the borrower, you know, I’ve been through the process of one of the borrowers run out of money or have their values wrong.
Peter Vekselman: 33:09 And so now as we’re going through challenges, one thing I will tell you, you know, knock on wood, we are not making mistakes along the way. We’re not losing any money. We’re secure in what we’re doing and everything is going great. Okay? So again, in real estate you go big conceptually, you’d go big mentally you go big, big, even timelines, you go big commitment wise, you go small property wise when you get started or you’re starting a new venture or you’re starting a new model or you’re starting a new strategy, you know, that’s how you do it. And if you study some of the biggest developers out there, right? I mean like powerhouses. The trumps of the world, you know, in these kind of studied their history and what they did, you’re going to realize, you know, maybe for someone like trump, their first deal for us, that might might’ve been huge, but when you look back at those guys as history, their first deals for them and their families, we’re not that big.
Peter Vekselman: 34:11 You know, we’re fairly small on that scale. So go big mentality. Go small property wise guys. Look, this is very simple. This is why we get together with Yolanda on Thursday, not Tuesday nights. One, we want to deliver real life context. This is real life for us. Well, we’re talking about this is what we’re doing. You know, as a matter of fact, Julian, I spent, I don’t know, half an hour today evaluating a brand new market that we’re going to go back into. We were in this market for years and we’re actually going to re enter this market again. We didn’t say like we’re gonna re answered with like six offices. We’re going to open up and hire 100 people and we didn’t talk. That was not even an a. and guess what, there was a time when we were dead in that market that we could potentially sustain that.
Peter Vekselman: 35:05 But for us this is a new re entry into something. So we have the ideas, but we’re not doing anything stupid, you know, admin one or two key people to start with because entering something, we’re doing it over again. We know that now in this go round we may encounter things we didn’t encounter before. You know, remember, success is not a timing thing. Success is never a timing thing. So success is a crossing a line thing. We just want to make sure we become stressful. Too many people based success based upon, well I got to get that first deal done because I got to be successful in 30 days. You know, man, Oh my God, I’m doing this for 60 days and I’m not like uber successful will no crap. It’s taking your whole life to get some broke. And why would you ever think that it’s going to take you 60 days to be rich?
Peter Vekselman: 36:02 Now success is not a time. It’s a finished to cross and finish the line and some finish a little bit quicker, some finished two little bit longer, but all that finish are excited to be there. No one’s ever. I’ve never seen anyone become uber successful that look back and say, well crap, I wish I would have liked done at like a earlier now doesn’t happen. A lot of people don’t even realize what line is. I’ll be honest with you. I mean I can’t remember when I did my thousandth deal. That’s like a pretty big deal to do a thousand deals. I can’t remember. The last time was the first time I ever looked at my checking account, one of my accounts and instead of a million dollars in there, that’s a pretty big deal. I can’t remember it, but I know I got into these places. Okay, so the key, the key is to get there. The keys to get there.
Julie Muse: 36:55 Yeah. Nothing comes easy, you know, any. If you look at anything in your life, relationships, you know, you got a good husband, you got a good wife. That didn’t come easy. That took time, that took effort and it took cultivation, right? So just always remember that nothing it’s worth having is ever going to come at a small price for you, nor is it going to come easy, you know, but, you know, I do find some people do, do their first deal in the first 30 to 60 days. Um, I’ve got, we’ve got a couple of students we’re working with now. We’re working on our first deal, 15 days into it now, if you can’t determine who that’s going to be upfront, right? And a lot of people call that luck you, but if you look at lucky, paypal, there’s a definite correlation between hard work and look, these people will do what they gotta do every day and you don’t put up post and actually in, in our community peer today, if, if I told you that if you make 100 calls, cold calls, right? Did you could make a half a million dollars next year, would you do it? You know, and people don’t grasp that. You have to set goals and you’ve got to understand this business if you know what you’re doing. And you spent every day making 100 cold calls.
Julie Muse: 38:28 I really believe that, you know, but the thing is, is partnering with someone, Peter, you know, important with us, someone that’s gonna, walk you hand by hand and show you exactly how to find deals, how to fund them, how to complete them and not dimension. Have someone there to kind of kick you in the rear until you keep moving. You know, I believe in you. You notice that cliche if we can do what you can do it. And I wholeheartedly believe that, you know, there’s nothing like working with us, you know, one people, when I’m talking to New People I’m working with the winds are scheduled call every week. Julie, for me, that’s not how I work because I know when you have a question you need answered immediately and your success is what makes us successful. As Peter mentioned, we moved our entire business around to do deals with people across the nation. If we don’t do what we need to do to make them successful in this business, then we’re not gonna make any money. Right Peter? So I mean everything that, everything that we want for you, we are going to definitely give that to, you know, that’s
Speaker 5: 39:54 okay.
Julie Muse: 39:55 Go ahead. Sorry. But no, that’s it. That’s exactly what we’re looking for. I mean, we have systems getting have blueprints, you know, like David, like David was mentioning, you know, but nothing. You don’t need a system system system. I even assist them. Hey, I’ll let everybody else that if you don’t actually do work and constantly work on systems, you aren’t going to have anything. You can have the best crm system in the world. If you don’t have any leads in there to call, it doesn’t matter. So I’m sorry to get off on a tangent on systems. By the way, I love systems. I love teaching you guys systems, but that’s just one of my.
Peter Vekselman: 40:47 No, that’s awesome. And you should point to why we do these calls because guys love were about delivering value to you guys. What we also know along the way, which is so important and what I talked about today, guys,
Julie Muse: 41:03 in the end, nope,
Peter Vekselman: 41:05 prevent problems, issues, financial woes, loss of sleep, stress, losing money. In my opinion, only way to ultimately prevent that is to have a real life partner who is more successful than you, more experienced than you and more funding than you.
Peter Vekselman: 41:24 Not even a small deal will prevent you from a mistake, a small deal. We’ll create a smaller mistake, but a small deal will not prevent you from a mistake. The only to ultimately isolate yourself, insulate yourself from myspace, was to work with somebody that knows what they’re doing more than you. If you’re somebody that’s got a proven track record, work with somebody that’s got the ability to not only understand what’s going on, but it’s something they don’t understand, they have the resources to go out there and find what the issues are you got to work with that’s capitalized in this business. I can tell you almost all mistakes are money driven. Almost everything in this business is money. You know, construction problems, money, we’ll fix it. You know, value problems. You make less money. Money fixes it. Financing issues. If you have enough money you don’t have, you don’t have financing issues.
Peter Vekselman: 42:18 So the experience level and financial abilities is the two things that make people successful and that’s why guys, we do these calls and this is why we’re so proud about what Julie and I have put together here in our partner driven real estate coaching program because in our partner driven coaching program, we do a number of things for you that in my opinion, pretty much guarantee success for people that stick around long enough and implemented long enough. Number one, the biggie using my money to close on your deals. That’s huge. I mean you could say that’s like 70 percent of the issues that people run across in this business is either not. The ability is the inability to perform financially either in a front end, the middle end of the deal, or to backhand when you’re a part of one, when you’re one of our partners, that worry goes away.
Peter Vekselman: 43:12 If you’re one of our partners, we actually help you find a deals, guys in this business and understand how to market at a high level. If you do not understand how to find deals. If you did not have the research behind the scenes things, if you do not have the ability to to market from a perspective of a successful investor, I in my opinion, you have no off. We actually for a partner driven clients, we help you with the marketing construction. Huge guys, almost every deal needs some kind of construction work because that’s how we as investors realize their upside very few times. Are there profit where people are like, well, I got a million dollar home. It needs no work. There are no problems, so let me just go sell it for half a million. I mean we love and those deals happen, but those deals rarely happened.
Peter Vekselman: 44:04 So the way we create value in this business is we fixed problems. So construction is a very, very important piece of the puzzle. Guys. We is your partners and our partner driven coaching program. We help you through that process. Sometimes guys, I hate to say it because I know Julie hates me to say this stuff. Sometimes we have to like jump in and take over to construction. That’s how bad things yet, but we’re there are partner driven coaching the sales end of cool, even though most of us don’t sell our own properties. The understanding of how that works, the understanding how to qualify the right realtor, how to deal with the right realtor, how to get rid of the wrong realtor, how to know if a realtor is and you just to get the listing. That’s an art form. We help with that too, and then we simply the profits and the back end.
Peter Vekselman: 44:57 So think about this. It’s our helping with the marketing. It’s our money, it’s our resources to help you execute the deals. It’s our infrastructure to help you sell the deals and you’re still keeping 50 percent of the deal folks. That’s the partner driven coaching program. I’m going to tell you right now, 20 years in this business, 3,500 plus deals, there is no one that does this in a country. What we do, and we’re flat out excitement. We just mentioned 10 minutes ago that we have changed. I mean literally like here, I’m still at the office here. I’m like, the only last year that I off. Oh, I’m like the last year. Good. Okay. I thought I closed myself off. I’m like the last one here, but I could tell you if you were here during the day and you saw people going back and forth through over there, anyone that you would have stopped, they would have known what more partner driven coaching clients are, who they are, what they’re doing, and everyone in this office that’s 9,000 square foot building that we have here.
Peter Vekselman: 46:03 Everyone is tied into helping our partner driven clients because everything was centered around that. Folks, I’m going to tell you right now what we do is is is mash and I will tell you this guys, because this, everyone’s automatically become successful. No, absolutely not, but the ones that pay the price of time and effort are able to piggyback. Piggyback on our experience in our money, and those across the board are going to be successful. We can pick the time, we can’t this, but if you’re willing to put the time and effort in, you’re going to utilize our experience, our money, and we’re going to do deals together guys, so if you want to learn how to be part of our partner driven coaching program, there’s two ways to do this. One, you can go to a. You go to my, you can go to our website.
Peter Vekselman: 46:59 We have a special site designed for this and coaching by Peter Dot Com. That’s www coaching by [inaudible] dot com and you’ll see some successful partners on there. You’ll see some unbelievable testimonials. You’ll see what’s taking place in our lives. As a result of this, you’ll get a better understanding what it is to work with us and all you do is you fill out a form and one of us will touch base with you and we’ll go over a little bit more details the other ways you actually literally call me directly. Guys, that’s how much I believe in what it is we do. I’ll take the initial call myself and my number is area code four. Oh, four, nine, five, nine, six, eight, five guys. But I will tell you from a personal end, because I talked to a lot of people that get started with us. If you’re a tire kicker, if you’re still like scratching your head and you’re trying to figure out, well she’s shoe.
Peter Vekselman: 47:52 I do real estate, or should I just drink beer for the rest of my life? Or should I like, uh, work with somebody that’s going to put their money where their mouth is? Or should I go to one of my local guru seminars that’s gonna fly in tomorrow and fly out the next day? If you’re kind of still at that level and you hear what we’re talking about, what we’re offering, I rather you just not call or another rather in choir because you know, I mean if you don’t see this as like the most incredible thing. One thing Julian, I don’t do is we don’t convince, convince and we don’t try to, you know what I mean? Either theater or you know. And that’s okay. If you don’t, we want you to be part of our community on facebook. What’s the name of our faith?
Julie Muse: 48:40 It’s partner driven coaching, but another thing guys, if you are in the boat where Peter’s talking about right now to where you’re, you’re like, well, you know, Peter said, don’t call if I’m just getting started or if I don’t know if this is right for us. Another great opportunity called the Roman method.com where you for a $1 free trial you can get in there and see all of our content and you know, after that it’s just a, a small $99 a month, you know, technology fee and by the way that that actual is a self guided tour through kind of what we’re doing. And by the way, if you’re a one on one coaching program, you get access to that for free anyway. But maybe know you need, you don’t do the self study roadmap, the vex when method.com, you know, but you know, I’ll tell you the likelihood of doing a deal with us, you know, Peter and myself from being in that program is probably going to be sending none because you know, we have to know that you’re willing to invest in yourself so that we can invest in you. But that is also a great, great, great opportunity, you know, for you, it’s a good way for you to learn before you may be taking that step. But we definitely, you know, want to do deals and, and paid or you know, I’m probably not a good one to call.
Julie Muse: 50:16 Um, another thing, you know, if we have Tom Peter, is I want to give a shout out to a couple people in our program, um, from the sweet lorraine is closing blurring Simon a little bit north of Miami and pembroke. Actually, she’s closed her first deal with this on Friday. Now guys, this is not a fixed and clip. This is a whole cell bill will be split over $20,000 per plate deal together, but add lorraine not been a good student. Had Lorraine did everything Peter and I told her to do. We wouldn’t be splitting bills with her. She was a great student and she did all of this in less than 30 days. The closings a little bit more at 45 days, but you know, shout out to heart when you were talking earlier about great partners. We got in tonio up there in Chicago. They were closing those two deals within a couple of weeks and anytime you called and asked to do anything, he was on it.
Julie Muse: 51:17 You know. Also Tony, I mean there’s just tons and tons and tons of people to mention and, and I want to say just how blessed you and I paid her in an opportunity where we are able to meet these folks. I mean these are going to be some of the best relationships of our lives. I know it, I know is, you know, will want we, we joke and we always tell you about, but I wished and success for every woman that said that set has says choke was our partner in California. Um, and I mean he’s just absolutely killing it. He’s incredible, but there’s a lot of you out there that have the same potential. You just don’t believe in yourself and to that point.
Julie Muse: 52:05 So, you know, as Peter said, what you got to do is go fill out that form at www dot [inaudible] dot com. That way communicator can, you know, look and give you a call and, you know, I don’t know my number, you know, it amazes me every time Peter, you know, at the level he’s at gives you his direct phone number guys. That it’s four. Oh, four, nine, one, five, nine, six, eight, five. And as you notice, I gave his number and bought mine. So just contact john or Aaron with you. It’s been awesome as well. Thank you for saying that.
Peter Vekselman: 52:48 Cool. Listen, I think we have some great information today. Um, we’ve talked about something that I think everyone goes through or will go through, so I hope you all find this, found this very informative, very helpful. Guys were looking for more partner driven coaching clients because we want to do more deals and we want to help you do more deals. So either go to coaching by Peter Dot com or give me a call directly at four. Oh, four, nine. One, five, nine, six, eight, five other that I think we’re signing up, right?
Julie Muse: 53:20 Yes. And I just want to say I know today is nine slash 11, so you know, thank God we live in this country. Thank God we’re able to do this business. Thank God we’re able to, to even have this conversation that we’re truly blessed. Also everybody keep in mind if, you know, on the east coast there’s a big hurricane coming through the Carolinas through the weekend. Just a couple of things I want, you know, that’s really heavy on my heart right now. So, um, but that’s it. Signing off. Thanks Julie.