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Podcast

Episode #214 – Balancing Ambition, Family, and Growth with Glenn and Amber Schworm, Part 1

The market is saturated with real estate coaches claiming to be gurus after they do 2 or 3 deals. They haven’t even started to get their feet wet yet nor gone through several market cycles, but coach other investors.

It’s the blind leading the blind and this a formula for disaster.

So how do you find a good mentor?

Look for a track record and longevity in the game – people that have weathered several cycles and deployed different strategies. Like Glenn and Amber Schworm from Homeflippingworkshop.com have.

In this episode, Glenn and Amber will help you understand how to find good mentors that understand the real estate market. They also discuss different strategies you can employ in any market condition.

Listen now.

Show highlights include:

  • How to do 101 deals in one year with a small team (even as a real estate newbie) ([3:52])
  • The real estate investing model for average people that actually work ([4:44])
  • The 2 “emotional traps” that new real estate investors get into that causes them to fail ([15:00])
  • Why you should focus on these proven fundamental strategies instead of wasting your time on trends in the market ([16:37])
  • The “9D” formula to find motivated sellers in any market that puts cash in your pocket ([17:11])
  • How these hidden holding costs are silently eating away your profits ([28:03])
  • The “MAO” technique for estimating properties that gives you huge margins ([28:38])
  • The “Eraser Math” method that leaves newbie investors burnt out (and how you must avoid this like a plague) ([28:55])

To connect with Glenn and Amber Schworm, please visit:

https://glennandamber.com/ | https://glennandamber.com/podcast/ | https://www.homeflippingworkshop.com/

To get the latest updates directly from Dan and discuss business with other real estate investors, join the REI marketing nerds Facebook group here: https://adwordsnerds.com/group

Need help with your online marketing? Jump on a FREE strategy session with our team. We’ll dive deep into your market and help you build a custom strategy for finding motivated seller leads online. Schedule for free here: https://adwordsnerds.com/strategy

Read Full Transcript

You're listening to the REI marketing nerds podcast, the leading resource for real estate investors who want to dominate their market online. Dan Barrett is the founder of AdWords nerds, a high tech digital agency focusing exclusively on helping real estate investors like you get more leads and deals online, outsmart your competition and live a freer, more awesome life. And now, your host, Dan Barrett

(0:40) All right. Hello, and welcome to this week's episode of the REI marketing nerds podcast as always, this is Daniel Barrett here from AdWords nerds.com. And look if you need more motivated seller leads and deals online for your real estate investing business. You know where to go. It's AdWords nerds.com. Whether you need Google ads, whether you need Microsoft ads, whether you need Facebook ads or search engine optimization, we got you covered over at AdWords nerds doc. Okay, this week, I am talking to two of my absolute favorite people in the entire real estate investing industry. That is not an exaggeration. I am talking to Glenn and Amber schwaR. Now if you don't know Glen and Amber, you can learn more about them at Glen and amber.com. These people were instrumental in getting me into real estate investing in the first place. Not only that, but they are incredibly gracious, incredibly kind, incredible teachers and incredible investors. So they have something to teach you no matter where you are in your real estate investing business today. And they are just some of the nicest most giving people I've ever met. So I am so excited for you to get to know Glen and ever if you don't, you are in for a treat. So without any further ado, let's get into my interview with Glenn at Amber swarm from Glen and amber.com.

(2:18) Alright, what's up everybody? This is Daniel Barrett and I am here with Glenn and Amber swarm from Glen and Amber's dot com the real estate investing power couple welcome you guys. Thank you so much for coming on the show. Oh, awesome. Thanks for having me. Yeah. Thanks for having us, man. Good seeing you. Yeah, you'd like that I did the power couple thing. I feel like that's a good title. We could like wrap that up in there. I like that. I like it. I can live with that. All right, good stuff. Well, alright, so let's I there's like a million things I want to touch on with you guys. You guys are incredibly active in the real estate investing community and a bunch of different ways. There's a million directions we can go for people who aren't familiar with you guys, or what you do give people the kind of 30,000 foot overview of your business today. Because you've been involved directly in investing. You've been involved for quite a while now in sort of coaching and mentorship, you've been kind of at every level of the industry. So if we back up and we look at the business today, what do you guys have going on? What's your sort of primary drive?

(3:24) So yeah, we do a lot. Right. So we you know, I guess just very quickly, historically, we've been around since 2007. bought our first house. We're now this year, I think we eclipse 1000 deals we've done in that time. So we have 1000 deals between wholesales renovations, we have we have dozens of rentals, we have over a 13 short term rentals. So that's kind of what we do now. Last year, we did let me see last year being 2021. Thank you. Never so fast. It goes like that, you know, the older you get. We get 101 deals in our flipping company in upstate New York. And then, you know, six years ago this weekend, as we're recording this six years ago, this weekend, you were with us, my man, we had our very first home flipping workshop. And I always knew from the third house that Amber and I did I knew I wanted to be an educator and I knew I wanted to help keep I love to inspire people sort of my thing I love to inspire people and make them you know, seek the best version of themselves. But I wanted to have something to give them to get there because it takes finances right. So I didn't want people to leave a room and go I feel so good after that seminar now no idea what to do or thinks, oh, I want to give them a path and real estate. So the third house I walked in there I said this is it isn't what I said. This will teach people I said we can teach you how to be real estate investors. We can do this because wherever wherever people and so many people are just like us. I said well, let's prove the model first. And unlike so many people today, we didn't start our coaching business till we had done over 400 deals. That's when we started our coaching business right so very different than most people that do three deals and become a professional coach as 400. You know, I mean, so that's, that's it our passion Now certainly is, is in the real estate coaching space. That's where we spend a lot of our time. Our business where we live in Florida. We moved down to the beach in Florida a year and a half ago, and our business runs in upstate New York and our coaching business is all virtual was COVID. Man, that's been crazy. But it's been amazing to where you guys moving virtual before COVID times like, was that a thing that you had planned to do? Or that was just a thing you did in reaction to? We can't have events? Yeah, yeah, I thought we thought were business. You know, we're in a seminar business. We had $18,000, roughly in marketing, like infomercials and radio ads and everything for this big workshop when the governor in New York said, Nope, nothing. You can't do any seminar. And so they pulled the plug and all that marketing.

(5:51) They don't give you refunds on TV commercials. Yeah, at Brown dental toilet. So we had 30 or 40 people that had bought tickets to our event, or they spent a couple 100 bucks each, we reached out to him and said look at the world is clearly crazy. We're not sure what's going to happen. Please bear with us. We'll figure it out. And about six weeks into it, Dan, I was licking my wounds. Like you're an entrepreneur and you I'm just gonna guess if you're like me, like any entrepreneur, you have moments, you're licking your wounds on what am I going to do? Is this gonna work? I had thing like, this is my passion. And I'm losing it. And we saw an ad a line for doing a virtual seminar, somebody somebody said, Hey, you know, they were they were trying to make a living to like, do a virtual and I'm like, That's what zekiel is ready to avert for three days, she read to a virtual that I'm going to talk to a screen, oh, that's going to work. And then ever I said, we're going to do we call our marketing capital that started We call those 40 Some people back and lo and behold, it worked. And it was amazing that the cool thing about it, like the one thing we were concerned about is connection, you know, like, like, can you connect with somebody virtually versus Yeah, them in a hotel room. So that has been such a pleasant surprise, because not only are we able to connect people and it's still really helped them, but it has just broadened you know, it has opened up the whole country to us because now we're not in any one given city and on any particular weekend. We can teach people all over the country that can come to the workshops, and that has been so we're able to touch a lot more lives.

(7:17) You know, Dan, you and I and Amer the funny story is it was over a decade ago because our daughters was Jesse bull, or who here Bellinger she was born. Oh, at the Anthony Robbins. Yeah, I was pregnant with. So that was what 778 years ago when we met he was blind. And these are your listeners don't have the story. We were set in 10,000 people in Florida and Anthony Robbins business mastery. We were sitting directly next to each other. Yeah, well, we do I do real estate market like real estate investors and the friendship began and crazy story. But you know, you know that I'm those events. Lots of energy in the room. Right? Well, even Anthony Robbins is able to retreat the virtual space. Yeah. And now I think all of us have realized that, what is it 90 Some percent of all communication is nonverbal. And you get nervous that like, okay, fine, Sue, I missed that. The only sense we don't have is touch. So I can't touch you anymore. And so I'm sorry, I can't do that anymore. And that's it's the restraining order got put in place. That's it. That was a thing was we worked through it? Yeah.

(8:20) Well, I, I really want to ask about this. Because before I got into online marketing, I was in doing my student teaching, I wanted to be a high school teacher at my master's degrees in education, right. Like I like, educate, like, that is what I like. And it does strike me and it struck me during the pentose, or the height of the pandemic, when, you know, our kids were doing remote schooling at least for like, half a year, I think. And you know, like you said, everything went virtual already. My company was already largely virtual, but it was just more so right. It was everything was right. We did a Halloween party on Zoom, like everything was on Zoom. And it just strike me that like zoom fatigue is a real thing. Right? It's a real pain. Like if you're on Zoom for too long. Yeah. The other color washes out of you know, you're out of your face. It's it's it's a lot. And I know for you guys, that one of the things that I think makes you unique in this space, and makes you guys really, really good at teaching. What you do is the thing that you sort of hinted at earlier, where you're like, we're average people, right? Like you have this sense of, it's not that we came to this with generational wealth, right. Now that we came to this, we're like, Well, I was working at a hedge fund. And, you know, we were 80 grand in the hole. Yeah.

(9:46) Yeah. I mean, I'm wondering like, so much of that, like you said, it comes across in verse, right comes across a certain level of personal warmth that comes across a certain level of vulnerability, right? These are all the ways that we communicated. So what did you guys? Did you guys change the way that the seminars worked? Did you change the way they were structured? Did you? Did you find it easier? Or harder? I mean, I know the advantage is you can be everywhere at once. But I'm curious how you did that effectively, because I think a lot of people listening to this, either have the opportunity maybe to teach or mentor someone even on a small scale. And it can be hard to do. So I'm just curious if you have sort of some kind of sense of how you got around that that made you so good at it. Does that make sense?

(10:34) I think the thing that was really important to us is that the student experience was still really, really great. And like, one of the things we did in the when we were live is we would go on a bus tour, for example. And we would actually go out to the house and evaluate that house, hotel and decide whether that was a hero or a zero. So we're like, how do we do that on Zoom, because we still wanted them to have that experience, because that truly has what a day in the life of an investor is like it's evaluating deals. So what we did, and you know, thank goodness, technology has advanced. So what we did is we have a house, and we put one of those Matterport cameras in it. And you know, we have a we have an advisor, one of our team members that goes into a row with a smaller group of people. And they literally walked through that house room by room to evaluate it based on that video. And it is amazing, like, like, and we don't have to have the hassle of the bus tour and the delay and getting out there and all of that stuff. So it made me even more efficient. So not only do they still have that experience, but we can pack even more knowledge. And that's the timeframe because we're not dilly dally. But I

(11:38) think for me, Dan, it's been all about making it very interactive. Yeah. So when I talked to the camera, so like, we have one coming up tomorrow, three days, I start tomorrow morning, we have over 200 tickets sold. And so well it's a Can't we kind of limit around 200 seems to be a good number for us to manage. And so I talked to a camera. And then I've got three giant 35 installed up 35 insured 16, whatever they are some big at some inch screens around me at 30. I have 330 inch screen and press it at any suffering. Yeah, yeah, Gressoney Walkmans around. So So I do all the spacing the screen, and I get to interact with everybody. So if I'm walking, you know, Dan, you know, I like to have fun. So I'm up there talking. I may call yawn and go Danny pay attention. Alright, live a little bit, I'll pay attention. Let's spell so and I've got my energy up high the whole time. And people know that I'm going to call on and we're going to talk right to coverage and do work work with like workshop sessions, there's a time that they get to go to our advisors one on one, they go to a small breakout room we have you know, China in a private conversation, we do a fun Jeopardy game at night, so they can remember what they learned all day where and when I joined everybody gets cocktails, we have a good time. We've made it very interactive. And when when it first happened, it races to be temporary. I told my team I said, I don't want it to be temporary. I want this to be the our new normal. I said because I think even when the pandemic passes, there's gonna be a certain group of people that say, look at I will keep doing this from home, like I'm in a cage

(13:06) or whatever. And that's Yeah, the other thing that was really important to it, too, when we made this transition, so even before COVID, I had decided to stop going on the road because I it was too hard for me to be away from the kid. So I was doing that. And now that everything is virtual, we don't have to take that time away from our family. Neither one of us do. And not only neither, either of us have to do it. None of our team has to do it right. Because we're up there preaching a lifestyle, lifestyle, lifestyle. Real estate is where it's at. I live the hotel prior. That's like almost critical. So so we love and Glen actually gets up. And thanks, everybody for being there at the beginning of the workshop just for that reason, because we can do this virtually and not have to lead our families. And it truly is about last time, right? Yeah, I think you guys in particular, have always done a really, maybe not. Maybe you don't perceive it that way as having always done this, but I feel like you guys do a really good job of designing the business around your family and the lifestyle that you want to live. Right it's very easy to make a business that runs you rather than the other way around. I really want to hit on that let's find motivated seller leads online but don't know where to start. Download our FREE motivated seller keyword report today. AdWords nerds have spent over $5 million this year researching the most profitable keywords for finding motivated seller leads. And you can grab these exact keywords when you download our report at www dot AdWords nerds.com/keywords.

(14:43) But before we transition to talking about that kind of thing, here we've been talking about the height of the pandemic, right, which was sort of this kind of really tough time. I think that as we're recording this now, right? It's also very unsafe. Often time in the real estate markets, I think particularly investors, specifically, newer investors, right, who maybe intellectually understand that real estate is cyclical, but emotionally maybe don't understand at the same level, you guys have been around the block. I think you're I think you've mentioned this right? You guys started around 2007. So can you take us back to that time period and kind of talk about that process of getting started in a really rough market? Because I think stories of how people actually pivot through those difficult periods are really important for people to hear, so that they understand that it's doable. And just because you're in an uncertain market now doesn't necessarily mean that you're going out of business tomorrow. Does that make sense? Can you walk us through a little bit of what that experience was like?

(15:50) So, yes, I can tell you, I was asked today by another newspaper called that they were asking a question and I said, they said, you know, people are seeing that flippers are getting nervous. So they are I said, but I remember this very well, back in 2007. When we first bought our first house, right around the end of their 2008, the world went to hell in a handbasket. Right? When really bad fast will the real estate crisis. And I remember so many people telling us you're doing real estate. Don't do that. Now. Don't do that. Now. Wait, wait, wait, wait, wait. And they just kept telling us to wait. We didn't listen to it. We just kept pushing forward and what I have learned looking back, you don't watch our business do 100 deals next year? No, I think our flipping business will probably scale back this year. But what we're teaching our students is got inside a couple of deals this year, start getting the fundamentals because you know we base our business on fundamentals not on tracks. So like when we first got started, all the Guru's were talking about doing short sales. That was it, you do short sales man, that's where the money and retail and embrace it, we did one up and said he's suck, we don't like them. And then we said we actually bought our own home up there. But then we said you know, this feels like a trend, like these are gonna last forever. Eventually these all these foreclosures are going to dry up and we will be doing short sales anymore. So I'm gonna base my business model on some of the single way so we will we base our business model on is really what we call the nine ds of motivated seller because I don't care what market you're in. You're gonna have out corporates are gonna look at it real quick. You're gonna have motivated sellers you're gonna have what you've done. Right and disease and divorce and delinquency and downsize destination and they want to move and dilapidated house disaster comes along. Hurricane just happened here in Florida, right? Or people just get downright disgusted. But those are the nine real ds of motivators where the markets up Marcus down, those people still exist life like never says he life still goes on during tough times.

(17:53) It's sold out graduate college, they are having meaning they want to get out of their apartment like to them. This is the new normal. Okay, this is just what interest rates are, because maybe they can't afford as much of a house as they wanted to at one wheel. But they're still in the buying house by first seven. You know, back in the late 70s, at the interest rate was 18%. You know, that was that was just what was normal at the time. Yeah, fundamentals. Yeah, that's that's a big part of it. I think too, sometimes, like people that look at what Glen I have done, it can be a little intimidating just because of the sheer volume. But you know, if somebody wants to just make an extra 50 or $100,000 a year that can be very light chain. Absolutely. So it doesn't take you know, doing 10 deals a year or even five deals a year, you can do Yeah, one or two can change in one of the two can give you the option to quit your job and replace your income. Well, we

(18:40) teach Danny, this we take our students and one of the things we do the students that choose to work with us more law on long term basis we say look at our goal is to get you $100,000 In your first 12 months. That is you may not cash it out because the house at for sale but you you were trying to charge to earn 100,000, your first by doing two flips. It was our two rentals. I understand that. But the fundamentals you're going to learn so those first two flips will take place. And real estate has always been historically the best vehicle no matter what launch stick with the fundamentals. It's always proven to be honored years have a track record, you know, yeah, I'm curious. So you mentioned the the track record, right. And I also by the way, I want to underline what you said about basing the business on on fundamentals rather than the sort of situation that that exists at any given time based on a bunch of factors that probably aren't going to last right like so, for example, like negative interest rates or whatever your plan was right, based on this kind of really weird economic environment. I want to ask about how you guys view our situation today. And of course, you know, the market is such that by the time someone hears this podcast, right, the market is going to be different, right? So I'm more than thinking about your sort of high level overview. And I'm curious if you agree or disagree with me because my take on it and I am not an investor myself, right. I'm definitely not An economist, right but as an uneducated layman, right, working with investors, every day, when I look out, I basically see what feels like a disaster, but in actuality is more of a return to normalcy. Right? Like, like, houses used to take a couple of months to sell, like, that's normal, right? He was abnormal when you put your house on the market, and it sold the next day, right?

(20:24) And went $40,000 over asking, yeah, 25 and we're gonna waive all the inspections. And here's cash, you know, yeah, that, that, that that actually made me more nervous in a lot of ways, because it feels irrational. Right? So I'm curious when when you guys look out, you mentioned what you're teaching your students now. And I appreciate you guys being open to sharing that. When you look out today at the market. Do you view it as Yeah, we're headed into really tough and dark times, and we gotta really batten down the hatches. Do you view it as things are gonna be different? But that doesn't necessarily mean better? Or worse? Do you think it's a blip? And we're gonna go back to, you know, the carousel VC money. I'm curious just what you see happening, let's say over the next couple of pull out your crystal ball. I'm going to hold you to it. Oh, great. Yeah. Sorry, if you're wrong. Yeah. How

(21:15) do you think about that? That's my first my first my first comment as it was my crystal ball broken today. But none of us know anybody. Anybody that comes on a shows and predicts what I know what's going to happen. Oh, you don't you don't have a clue? Because what's happening right now is never happened before. Yep. This is not exactly like the 2008 crisis that was brought on by really a lot of bad mortgages, bad paper, bad lending deals. What's right now we have pretty solid fundamentals. It's an economic thing happening. There's a supply and demand. And right now in the economy, what's happening is the recession is hitting. I don't care what the government tells you. The recession is here, right? So it's hitting. Oh, there's no inflation. Oh, no kidding. Great. So thanks for expensive today. So there's a definite locking of forms between buyers and sellers today, I know that we've been in a crazy seller buyer's or seller's market sales. seller's market for a long time, like you said, you could put a house on the market, Lily's people in California, we're having 100 offers people are selling I know friends of sloths for 200,000 over asking, that's insanity. Right? And you're right, I 100% agree with you. And we're heading to normal that's been abnormal. And that's made a lot of people think, well, I can be successful. And that's why so it will have been successful. Because that kind of creating this covers a lot of mistakes. Yes, buy it wrong, make all kinds of mistake, you could whatever you could find a dead bike by Jimmy Hoffa and the fall Foundation, its diplomatic, you know, it was crazy, the mistakes that you could make and still make money, we're going back to normal, we've got to be a real real estate investor, right? You've got to be a real real estate investor, some of the things that are abnormal here to 95% of the people 9495 Whatever that stat is, right now, of people that have mortgages on houses are at 3% or lower. If they don't have to sell, they're not gonna sell, because they don't want to go into a 7% mortgage and have to buy a house half the size, you know, so they don't want to do that. And a lot of people have equity in their home right now, too. So moving, I think we're gonna see a slowdown in moving. I think that again, I go back to fundamentals if you're too much. We're a couple of deals a year and you know, I always tell people, real estate is not a get rich quick scheme. If you think it's a get rich quick scheme, you're in the wrong place. You're jumping in the wrong couple years, we're going to tell you all day long, it's not about get rich quick, and doesn't have to be get rich, slow. What you need to know what you're doing. And so just waiting a week, I just remember this, I remember 2007 We did we bought one house 2008 I think we bought three, and we bought like seven or 10. And then we jumped to 20. That was too fast. We grew too fast there. But you know, we, we sort of started that stair step or climb. And I think we're gonna see just like you said, we're gonna we're gonna level out to some kind of normal, do interest rates settle in the five, six range probably now they go up higher before they come down. Good chance until they find them where they're gonna settle. But eventually it'll have to settle and when they do we get back to normal where houses take a month to sell not four seconds, literally. I mean, it's been it's been a seat. So I think we're gonna see that I keep going back to this point, though, Dan. It's about if you base your business on fundamentals not on trying to catch crazy appreciation not on you know, right now there are different exit strategies you've been used. You can buy houses what's called subject to somebody was right, no was subject to as you take over mortgages, there is you know, people are selling notes, they're creative financing, they're selling a note to somebody else. So people will come up with other ideas, or I'm going to call an exit strategy to get through a difficult time on houses they already bought. But the secret now is you just have to buy deeper. You have to buy deeper to cover the change that's gonna happen. Africans also graphic to write

(25:02) it in that there's a different perspective here to that, you know, sometimes, like we get a nephew reminds that always, oh my gosh, interest rates are you know, 7% or 8%. And you know, I can't afford it. Because of that, when that's really looking at one factor, we went to a presentation and we're part of a big mastermind real estate mastermind and somebody did a presentation, I think was about two years ago. And, you know, everybody was like, you know, you can't build new because that is cost too much money materials have gone up so much since COVID, and supply chains and all that materials, you know, lumber was just out of this world expensive. Yeah, the presentation was about the cost of materials versus the cost of money. And it actually ended up being cheaper to build houses at that time than it was when when materials were cheaper, because the money was so cheap. So our workbench, now the money was cheap. The materials were more Yeah, yeah. So So my point to that and saying is, yes, interest rates are higher right now. But when we first started doing flips, we were able to get contractors to work for like, next to nothing, because they were so hungry, because now about a year ago, two years ago, it was hard to even find a contract, right? Yeah. And that starts to slow down, contractors get more available, they start to go down in price. So there's like a, you know that that trickles down the line. And there might be a trade off to you if the interest is higher, but I can get the work done. aroma?

(26:25) Yeah, I think you guys are making a really excellent point where it is very much the case, right? That easy. Money covers up a lot of mistakes, right? And what you guys are pointing to and in multiple different ways, right? So like, Mr. You're just talking about understanding that different places in your business where prices come down, right is like, hey, you need to have your systems and your operations and your logistics in place and actually do those things. Well, those fundamentals right, like Glenn was saying, to make it through. And in many cases, if you do that, that's almost a competitive advantage. Right? It's like a lot of people don't have those things. I'm curious when you guys, because work with so many investors and you work with investors have like all sorts of different levels, right? You've got people walking in the door who are totally new to real estate, right? And then you've got people who, like you said, are working with you long term, you know, you're building them up to 100,000. You're building them above that, right? You're sort of helping them build this this kind of generational wealth strategy. I'm curious at those different levels, or, you know, if it's the coalesces in one place, we could talk about that, but what are the most common mistakes you see people making? Right? Is there like, up there doing the thing again, like, here's the mistake that everybody makes you mentioned growing too fast, right? I think that's one that I hear about a lot. But what do you think are the common mistakes that people make at the different stages of their real estate investing career.

(27:52) Additionally, buying on emotion is probably one of the biggest buying and or designing on emotion, you know, designing the house, if you were going to live there yourself instead of what the cops tell you that you need to do to. I also think people don't keep track of how important it is to manage the job. Because those holding costs, we have a segment in the big workshop about this, that that the holding costs are the silent killer of real estate deals. So they let the project go on too long. And those holding costs just just add up. So the faster you can get in and out of the house, and it's every day, you got you've got you've got to buy as before you have to buy deep and you have to buy right and so people don't buy right they know we at our home cooking workshop we give we give people a what we call our whole living evaluated, we actually do a full session, they talk about a walk through a house, we show you how to estimate a house and it comes up with a term called mail. It'll business for awhile, you've heard that term, but mail stands for what's the maximum allowable offer, what's the max you can offer on this house. And typically, it'll start at that on restart and lower, you know, because you want to protect yourself. So that's the most that you can pay for that particular house. And every time I see a mistake being made from they go over that number they start they start doing a race or math in their head saying oh and wait, oh, you know what? Uncle Larry will be the tile flooring and I'll come on the weekends and I'll paint and I'll get this done. Oh, you'll go to garage sales, get the appliances and you just don't realize what they're actually doing. They're creating more proud of themselves and they realized so good that's the big thing I think new people made coming in they just don't they don't by writing

(29:18) or doing the work themselves. That's another Yeah, again that ties into the holding cost because it takes you a lot longer than what I was saying before that I wanted to finish my thought that buyers and sellers run this walk right now and buyers don't want to pay as much as sellers want to get as sellers still have the mindset and three months ago yeah well my house a lot of money. Well that house four doors down went 50,000 over asking well good for them. That was three months ago. It's a seller building cuff and the buyers are saying you know what, even even us we're saying Now we're not going to buy to get ready to move. There's this push and pull happening now. I know that it won't take long my crystal ball is pretty accurate on this one. Eventually it'll have to turn to a buyers market I mean the sellers will finally have to give in because I'm ventually they say, I can't do any more now, I bet because they're motivated sellers. And that's when it's gonna be a massive opportunity for us. Because as the recession hits, as we know, there'll be layoffs. Look, you look in the mortgage industry right now and banking right now, you know, I had a very good friend tie up in those businesses that they're looking good, you know, there's gonna be a lot of industries decimated by all the rates and inflation that are happening just a matter of time before it starts to happen, and layoffs will triple down that layoffs brings, people have to sell their house, even if it isn't a 3% rate, right. So they have to get out of the house, they can't afford it anymore. So there's going to be massive opportunity, because every time a recession or contraction hits, there's opportunity, you have to know where to look for it to get it. That's what we built our well, so we feel very confident going in saying we've done this before. Like, we're not afraid because this looks familiar. I can see why if you're new, you said and we started this, you said on the outside, they're like, up terrify, this is scary. And we're the inside going. Yeah, I've been there before, this is not that big of a deal of you know what to look for.

(30:56) And sometimes speaking of like that particular scenario, like we'll get some, you know, we do a lot of marketing on social media and whatever. And sometimes when it's, you know, we'll buy your house for cash, we can get some hay, or you guys are just taking advantage of people that are the that that sort of stuff. I think what people again, they're just looking at like one factor. What people don't understand is, you know, those people that Glen was talking about that need to sell their house because they were laid off and you know, they can't afford their payment anymore. When someone like us comes in and buy their house for them or your listeners, you know, they're buying a house from someone, you're helping that person, you're you're potentially saving their credit, you're helping them get out of a situation that they're over their head. And now so you're you're providing a service for that person.

(31:38) Yeah, I think real estate investing, it's been really interesting, because I think, you know, I'm obviously working with real estate investors every day have been doing that for nearly a decade now. Right? And it really strikes me that the perception of real school real estate investors are why they do what they do, outside of that industry, and the perception of real estate investors for who they are and why they do what they do with in the real estate investing in street those are completely they are polarized, it's like public perception of real estate investors is like, you wake up every night in a coffin. You know, you're like, just rise from the dead. Like, and, you know, and inside, like, you know, it's like we you know, we go to similar masterminds or you be real estate investors, every single one of them's like, giving a lot to their local community is like constantly like, Well, how do we help people want to make sure we do this ethically, right? Because I think a lot of people who don't do that can make a quick buck, but they tend to explode pretty quickly. So the people that are left tend to be pretty pro social on average. It's kind of fascinating to me. Okay, guys, hope you enjoyed part one of this episode. It's just too good to limit one show. Join us next week to hear the rest

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