From DoorDasher to $1.5 MILLION in Actual Property (All at 22 Years Outdated!)

David:
That is the BiggerPockets podcast, present 749.

Rob:
I by no means thought that whereas I used to be DoorDashing in school, not having essentially the most clear imaginative and prescient of what I wished to do after, that actual property would enable me to personal over 10 properties proper round one million and a half in valuation and have the flexibility to create some long-term constant money circulation.

David:
What’s happening, everybody? That is David Greene, your host of the BiggerPockets podcast. Right here at the moment with my co-host, Rob Abasolo, with a present that’s going to blow your thoughts. Immediately’s visitor is 22-year-old Josh Janus, who has already established an actual property portfolio over 10 properties, can also be promoting homes as an agent. He offered $17 million final yr. On this episode, Rob and I get into how he’s doing it and what he’s discovered that different individuals haven’t. My thoughts continues to be blown, Rob. How are you feeling?

Rob:
It’s a kind of issues the place I’m identical to if you discover somebody that unlocks one thing in actual property and so they’re completely crushing, it’s tremendous spectacular, however if you discover somebody that’s 22 years outdated making six figures a month doing very well in actual property, it truly is simply a kind of issues the place I’m like, “Man, I received to catch up.” And I’m like 10 years after this man.

David:
That leads us to at the moment’s fast tip: Get began in actual property early. How will you get began now? I’ve typically heard it mentioned that the perfect time to purchase actual property is 10 years in the past. The faster you get that clock began, the higher it’s going to be for you. One of the best offers that I’ve is the stuff that I purchased the longest time in the past. That doesn’t imply to purchase dangerous offers early, however purchase good offers early and wait. Rob, what’s one thing about at the moment’s present that you simply assume individuals ought to preserve a watch out for?

Rob:
Even with Josh’s success and the way a lot cash he was making, which we’ll get into that within the episode, he was nonetheless actually trustworthy about his fears moving into his first property that he in all probability may have straight-up paid money for in a single or two months. And so, it was simply good to listen to that even somebody that could possibly be making a lot cash may nonetheless be weak and fearful of their first deal, nevertheless it was actually cool to see the glow up and to see that that first deal catapulted him to the place he’s at the moment. Yeah, only a actually cool inspiring second, I believe, to simply hear him put all of it on the market.

David:
He additionally shares how he received began in enterprise making duct tape wallets and DoorDashing. It is a one that listened to the podcast driving round, dropping off Jack within the field and pizzas and turned it into an actual property empire, identical to a lot of you which can be listening to this now actually need. That is one I’ll take heed to twice and pull as many items of knowledge as you possibly can out of this story to think about how one can apply it to your life. With none additional ado, let’s herald actual property phenom, Josh Janus.
Immediately’s visitor, Josh Janus, knew in highschool that he wished to retire by 30 years of age, so he constructed and managed completely different aspect hustles, from duct tape wallets to a profitable sneaker enterprise. Josh was a university scholar who additionally drove for DoorDash. Final yr at age 22, he offered over 125 properties in his first yr as an actual property agent, totaling over 17 million. As an investor-friendly agent, he has bought and renovated over 10 properties utilizing little or no of his personal cash in actual property over the past seven months. We’re going to unpack this at the moment. Josh, welcome to the podcast.

Josh:
Thanks.

David:
Yeah, it seems like you’ve gotten a robust entrepreneurial focus. Earlier than we get into the way you achieved every thing that I’ve mentioned, what was it about actual property that attracted you within the first place?

Josh:
Once I was youthful, I used to be at all times attempting to save cash. I didn’t actually know precisely the best factor to do with it, however I used to be like, “Hey, I’d as effectively stash it away and ultimately I’ll determine it out.” I had round $10,000 saved up, like free capital to make use of. I used to be beginning my school profession, and I used to be launched to the concept of home hacking when principally Googling what to do with 10 to $20,000 if you’re 20. That led me to BiggerPockets and that was my introduction to actual property as a complete.

David:
Did you ever really go anyplace with home hacking?

Josh:
I used to be shut. So again after I was dwelling in Cleveland, Ohio, I used to be taking a look at properties. I discovered the place I wished a home hack, however I ended up switching and going to a distinct school, I went to the Ohio State College, after which my subsequent journey was going to be the home hack there, however I didn’t really find yourself doing it.

Rob:
So Josh, it looks like clearly you’re somewhat bit entrepreneurial right here. Earlier than we get into the true property stuff, as a result of I believe even on the age of twenty-two, having $10,000 in your checking account is a tough factor. Lots of people are like, “How can I get 10,000 bucks?” So are you able to inform us somewhat bit about the way you even received the ten,000 bucks? Did you simply have a ton of aspect hustles or have been you working a job?

Josh:
Certain. I used to be working. I used to be doing numerous aspect hustles. I used to make duct tape wallets after I was in center faculty and attempt to promote these. That was enjoyable. The subsequent factor was actually excited by was sneakers, the entire sneaker tradition, reselling, as a result of I used to be a reasonably large basketball participant and I used to be uncovered to that business. I used to be going to completely different sneaker occasions, I might lease out a desk, deliver as a lot sneakers as I may slot in my couple luggage and attempt to promote them and principally simply saved these earnings over time.

Rob:
Good. What did a duct tape pockets run you again within the day?

David:
Oh, man, it was like $5 to promote. I imply, it was numerous work for $5.

Rob:
Oh, I see, as a result of I used to be going to say a roll of… effectively, bathroom paper… sorry, duct tape going to value you want three, 4 bucks, so yeah, if you happen to can make-

David:
See, Josh, that is my drawback, Rob at all times forgets to incorporate the worth of time. He solely appears on the cash when he calculates ROI, you possibly can see.

Rob:
That’s true, however you had numerous time.

Josh:
True. Yeah, I used to be doing it at school and on the bus.

David:
This jogs my memory of me. I want I had had one thing. I’ve at all times had a really tough time paying consideration at school, in class. Anytime that I’ve to comply with any person else’s tempo, in the event that they’re speaking too gradual, I’m like, “Ah.” My mind simply wanders. I can’t sit there. They didn’t have fidget spinners. Or what’s the opposite issues that everyone performs with now, Rob?

Rob:
Fidget cubes.

David:
Fidget cubes, there you go. Proper? What did we’ve got in my day? We had silly pencils with completely different coloured lead that you can click on the completely different colours and play with, or we had these bracelets that you can snap in your wrists and they might curl up in a ball. I doubt both of you guys ever noticed these issues, but-

Rob:
Oh yeah, you continue to have that shiny pink one that you simply at all times play with through the podcast?

David:
Yeah. And after I work out. That’s my fortunate exercise wristband. Brilliant pink, completely. PinkerPockets for the win. You’re entrepreneurial at coronary heart, Josh, which I like as a result of I do know that is the place you study the basics that later translated into actual property investing. We interviewed Ryan Pineda on our podcast years in the past, and he talked about how he flipped couches. He would purchase couches, repair them up, and flip them, which he then later became a home flipping enterprise, and now he’s constructed a whole empire, which I wish to assume we’re principally those that launched in into the ambiance. However Ryan took that atmospheric launch and constructed one thing fairly cool out of it. So I’m curious if you happen to may share what classes do you assume you discovered with a few of these early endeavors that translated into actual property later?

Josh:
I suppose within the sneaker tradition you’d see a few of these actually cool sneakers that athletes have been sporting or celebrities, and possibly you’d flip a number of pairs, you’d make like 500 bucks. And also you’d wish to take that revenue and instantly purchase your personal pair to maintain and put on. My mindset was I’d moderately save that cash and possibly put it in direction of an asset. I discovered the concept of property after I was youthful, the place you possibly can really use cash to earn more money. I didn’t actually perceive which property to make use of on the time. I simply knew that idea, and I used to be like, “It’s received to be a greater method of spending my $500 revenue.” So I believe that’s one factor that I discovered for certain after I was youthful.

Rob:
By the way in which, that’s not the worst mindset to have the place you say, “I actually need this factor, so I’m going to determine easy methods to make cash with this factor that I would like, promote it, make a revenue, after which get the factor that I would like.” That’s actual property in a nutshell, proper? You wish to purchase property, so you purchase a property, you flip it, you’re taking the earnings, and what do you do? And often, if you happen to’re a very good actual property investor, you go and also you dump it again into one other property otherwise you purchase a property and produce other individuals pay for it, long-term leases or short-term leases. I believe the mindset just isn’t incorrect, it’s simply actually spectacular that you simply discovered at a really younger age that as an alternative of shopping for sneakers, you need to put it into one thing that’s going to make you more cash.

Josh:
Yeah, I believe I used to be at all times looking for extra methods to be extra productive with my cash. I discovered early on, for sure, sneakers that I’ve to go to the shop and wait a number of hours, I used to be pondering, “This isn’t very scalable if I wish to attempt to get 20 pairs of sneakers as a result of I can’t be concurrently at 20 locations on the similar time. I’ve to learn to depend on different individuals.” Various things like that helped.

David:
I attempted completely different endeavors too. I labored at eating places, and I discovered easy methods to promote wine and steak, after which I attempted to get a job promoting vehicles at one level and that didn’t work out. However finally, I believe numerous us see actual property as the head we’re attempting to get to. We wish to promote the costliest factor we are able to. Getting an actual property license just isn’t one thing you want this four-year diploma. I want it was. I’d really feel significantly better if brokers needed to go get a two or four-year diploma to so homes as a result of there’d be much less crappy ones on the market, and we’ll get into your profession there too, Josh. However was it the identical factor for you that actual property was only a pure development of the perfect factor that you can promote?

Josh:
Yeah, I believe so. It appeared like I needed to put virtually, now they give the impression of being again on it, the period of time it takes for me to promote one home was virtually the identical period of time and power it took for me to promote one or two pairs of sneakers in some methods.

David:
And your arms aren’t sore from creating these duct tape wallets on a regular basis. It’s simpler.

Josh:
Sure, that too.

David:
You let DocuSign do all of the work, much less paper cuts. All proper, so let’s return in time. You’re in school… I say return in time, you’re 22 years outdated, you may nonetheless be in school. The place does this curiosity in actual property begin to come into play? How and the place did you begin to dig in?

Josh:
I imply, I simply was googling, “What do I do with 10,000 or $20,000? How do I make investments it?” I can’t bear in mind if it was BiggerPockets straight away, however I noticed home hack, and I used to be like, “Possibly I may purchase a property on the school campus I used to be going to. Reside in a single unit, lease every thing else out.” That slowly led me to know, “Oh man, if I change into an agent, I may work out a method to discover probably the perfect offers,” in order that was my aim.

David:
So that you didn’t purchase a home to deal with hack, however you bought uncovered to actual property, it made sense to you, and also you thought, “ what? I’ll simply get my license and I’ll assist different individuals do the identical factor.”?

Josh:
Yep.

David:
All proper. So did you simply search for easy methods to get an actual property license and simply begin learning and do this, or did you’ve gotten a mentor that guided you?

Josh:
The very first thing was diving into the BiggerPockets boards, actually. This podcast may sound like a BiggerPockets promotion, however in all actuality, a ton of my development actually stemmed from that basis. However that was one of many first issues. After which I additionally received latched onto a man named Remington Lyman, who’s additionally an agent. He works at Reafco Actual Property, he owns the brokerage I work at. However I messaged him, I used to be explaining my scenario. He hopped on a Zoom name with me, defined the advantages of home hacking like, “Possibly if you happen to wished to change into an agent right here or come right here, we are able to educate you easy methods to discover off-market offers. We can assist you construct these methods.” After which subsequent factor , I used to be working as arduous as I can to get my license.

Rob:
So that you’re getting your license, and clearly as you determine your actual property agent enterprise, that’s going to take a while to get that deal circulation and truly closing properties and creating wealth. Have been you working every other jobs whilst you have been doing this or have been you all in on the very starting?

Josh:
Within the very starting, I used to be nonetheless taking courses. I used to be learning laptop science, after which I used to be driving for DoorDash 20 to 30 hours per week. After which at any second I may, I used to be attempting to simply chilly name. That was my primary supply of discovering offers to start with. My plan was chilly name, discover a deal, or no less than get any person to speak to me about their property, get some particulars, deliver it to one of many brokers that I used to be working with. They’d break down the deal, clarify like, “Possibly an investor would really like this,” or get some clarification on what the rents are, the lease phrases are. It began there.

Rob:
Have been you ever deep in dialog, you’re like, “Give me one second,” and you then’d pause to take a photograph of the DoorDash supply to add within the app after which get again on the decision?

Josh:
Possibly. I used to be attempting to not do the supply whereas calling to… I used to be doing it after I was driving, however not necessarily-

Rob:
Oh, mid supply.

Josh:
Yeah. Yeah.

Rob:
What sort of cash does a DoorDasher make? In case you’re working 20 to 30 hours per week, is that fairly good revenue? Are you able to give us somewhat body of reference there?

Josh:
Yeah, I imply, I used to be round 5 to $800 per week, I believe, working that quantity of hours. That’s fairly good.

Rob:
Yeah, that’s stable, particularly if you happen to’re in school and also you’re doing all that. So that you’re DoorDash and making fairly good cash for the place you’re in life and also you’re chilly calling. What was that first deal like if you really landed a lead that grew to become a transaction that paid you out?

Josh:
Positively. So I used to be chilly calling 4 items in what I might name A-Class space. I simply discovered a man that occurred to be motivated that day. He was fairly straightforward to speak with. I introduced it to the agent I used to be working with, he’s like, “Oh yeah, we may promote this deal.” So I wrote up an electronic mail, which is the way in which that we market our offers, then he introduced it to his traders. Anyone ended up taking the deal on. That took a couple of month to shut, as most properties do, and I principally made what I might make in a month and a half from DoorDash from that. I used to be fairly psyched as a result of I assumed, “I simply have to knock out a number of extra of those and I may find yourself making this produce extra revenue than simply DoorDash.”

Rob:
So that you began math out like, “Oh man, if I did this thrice, I’ll make this amount of cash.”

Josh:
Oh yeah, positively. After which one other factor is, if you happen to get your license, you find yourself making a a lot greater lower as a result of you possibly can really symbolize both the vendor or the client, is determined by the scenario, so I used to be making a referral payment. In order quickly as that deal will shut, I used to be like, “All proper, I received to get my license. Let’s begin learning proper now and attempt to knock it out.”

Rob:
Yeah. So was that extra, I don’t know, a wholesale deal the place you’re calling, you discover somebody, you get a property off-market. They’re like, “Yeah, I’m prepared to promote it.” Are you then passing that off to realtors to promote or have been you promoting it to an investor and taking a small payment for that?

Josh:
I labored below a realtor named Abe, so principally I simply wrote all the small print of the property, gave to him, after which he discovered an investor that was within the brokerage that I used to be working at. It’s like a hybrid type of wholesaling. We simply don’t really put the offers below contract, we simply current the knowledge to the potential traders.

Rob:
Is smart. I suppose you shut this deal, you’re like, “Oh my gosh, I simply received to do that many instances.” You begin getting extra into this. How have been you in a position to steadiness every thing from getting your license to ending school to, I assume, nonetheless possibly working some DoorDash right here and there?

Josh:
I imply, at that time, principally I used to be like, “I’m simply going to make use of all of my time outdoors of faculty to dedicate in direction of nonetheless sustaining a chilly calling schedule,” which I believe is basically essential, “after which getting my license.” So I received my license in about two months.

Rob:
Are chilly name hours at all times 9:00 to 17:00 or have been you getting artistic and calling from 5:00 PM to 9:00 PM too?

Josh:
9:00 to 11:00 was my chilly, chilly calls, the individuals I’d by no means actually talked to. After which I might use 13:00 to 17:000 as numerous follow-ups or new chilly calls. Nevertheless it appeared like if you happen to hit any person within the morning after they’re driving, “Oh yeah, yeah, yeah, name me again later,” then I simply hit them later, and often that ended up being a fairly first rate converter.

Rob:
David, do you think about your self a lot of an excellent chilly caller? I’ve by no means heard this aspect of you earlier than, so I’m curious.

David:
I did it to start with of my profession after I needed to. I didn’t find it irresistible, so I didn’t do it rather a lot. Whenever you’re looking for offers, most individuals fall into certainly one of two classes. There’s the direct contact particular person, which is a chilly caller, or there’s the content material creator, which will get individuals coming to them. Most individuals often take a kind of two paths. And since I ended up as a podcast host and an creator, I went the content material creation aspect versus the direct chilly name.
Josh, I imply, you probably did what you can do since you didn’t have an enormous podcast behind you to unfold the phrase. I’m curious since you talked about one thing, you talked about this wholesale hybrid mannequin. Are you able to give us somewhat extra element of what you imply by the way you have been creating wealth on these offers?

Josh:
So the vendor was like, “Hey, I would like 450 for this 4 unit.” And usually wholesalers would write up a contract, get it below contract, after which promote that contract for a payment. The way in which that we do it on the brokerage I work at, at Reafco, we don’t put it below contract. We simply take all the small print of the deal, write it in an electronic mail, after which current that to our traders. After which if certainly one of our traders likes it or they wish to write a suggestion, we simply write up the provide and current it on to the vendor.

David:
How are you being compensated? Are you getting a list settlement from the vendor if you deliver the client to them and there’s a fee in there for you guys?

Josh:
We don’t really use itemizing agreements, no. Throughout that timeframe after I didn’t have my license, I used to be getting a fourth of the fee for the agent I used to be working below. He received 3%, then the agent that introduced the client received 3%, after which I ended up with 25% of the three%. That’s how we did it.

David:
How have been you guys getting commissions if there was no itemizing settlement?

Josh:
It’s nonetheless an executable contract with commissions within the settlement, so it’s going to say, “Vendor to pay 6% to our brokerage.”

David:
I gotcha. So you’d deliver a purchaser and within the provide it could have who was getting paid so far as the brokers are involved?

Josh:
Appropriate.

David:
I see. So moderately than placing, getting a home, placing it available on the market, letting everyone see it, attempting to get provides, negotiating the best one, you guys simply lower to the chase and also you mentioned, “Hey, I received a purchaser that may pay this a lot for your own home. If you wish to take the deal, right here’s how a lot it’s going to value you. Right here’s what the web to make use of goes to be,” and also you guys have been working somewhat extra effectively.

Josh:
Yeah. I believe it permits us to benefit from these leads that aren’t as motivated to signal a list settlement, as a result of there’s lots of people that fall in that class, I believe.

David:
That is additionally a type of off-market deal, so different consumers didn’t have entry to the identical stuff that you simply guys have been bringing them, appropriate?

Josh:
Yep.

Rob:
Yeah, however Josh, let’s say you’re presenting this property, since you don’t have a contractor, you don’t have a list settlement, what would cease an investor if you happen to say, “Hey, investor, I’ve received this cool property, right here’s the tackle,” what would cease them from simply going over you and going straight to the vendor and simply transacting the deal themselves?

Josh:
That’s a very good query. We’ve an off-market settlement that we current to everyone previous to setting offers that roughly states, “In case you go after a deal that we deliver, you need to use us as your agent.” At first after they haven’t signed it but, we’ll ship individuals tough descriptions of all of the offers. It gained’t have the tackle, often gained’t have photos. However then in the event that they’re like, “Hey, I actually just like the idea of this deal,” we’ll set on the settlement after which they signal it and we’re good to go.

David:
So it’s a type of a purchaser illustration settlement. Folks don’t understand you don’t need to set it up for each home that I present you or each home you can purchase. You may say, “For this tackle, I’ve to be your agent,” however they may use a distinct purchaser’s agent for various properties that get delivered to them. That truly is smart. I see now why you’re calling it a wholesale hybrid, as a result of wholesalers do it that method. They are saying, “Right here’s a 3, two with 1,800 sq. toes on this zip code that will lease for this a lot cash.” That’s all that individuals get to begin with till they wish to analyze it later. So you utilize that advertising and marketing method paired with actual property contracts to guard every occasion there. What occurred subsequent? How did you get to the purpose that you simply have been making extra from these commissions than you have been making out of your DoorDashing?

Josh:
In order that first test got here in, that was a couple of month and a half’s price of DoorDash. I had numerous heat leads, folks that weren’t able to promote straight away however they have been getting shut. I used to be principally like, “I’m going to take the subsequent six weeks, I’m going to go actually arduous at this.” At that time, I used to be spending two to 3 instances extra hours per week on this than I used to be earlier than. Then I received my license, then I began placing a complete bunch of offers in contract.

Rob:
Whenever you say you’re placing two or three extra hours, do you imply simply within the follow-up?

Josh:
Sorry, my dangerous, two to 3 instances extra hours per week than I used to be earlier than as a result of I used to be like, “Hey, no extra DoorDash for now, we’ll simply work on actual property.”

Rob:
Received it. Was all that point on lead era, was it following up with… since you mentioned you had a big pool of heat leads, so these are folks that, they’re , they’re not prepared to tug the set off essentially, however if you happen to preserve approaching them, coming again to them, ultimately they convert, proper?

Josh:
Yeah, ultimately. Yeah.

David:
All proper. Have been there any key studying factors throughout this tough time? What was happening available in the market at the moment? Was it nonetheless red-hot? Have been issues slowing down? The place are we in time?

Josh:
That is the start of ’22, so it was nonetheless scorching, positively. It was cooling off somewhat bit, however each deal that was first rate that hit the market would have a number of provides and the itemizing agent could be getting hounded. It was positively robust. At the moment, I additionally tried to make an even bigger presence on BiggerPockets, so I used to be posting rather a lot. I believe I cranked out 1,000 posts in about three months.

Rob:
Wait, maintain on. Okay, in order that’s 90 days, so that you have been posting 10 instances to 12 instances a day on the BiggerPockets boards?

Josh:
Yep. That was my schedule. I consider from 5:30 to six:30 each morning I needed to spend an hour in BiggerPockets by posting or no less than studying content material and attempting to offer worth.

Rob:
The place you have been making posts and truly placing content material on the market, what’s an instance of one thing you’d throw out into the BiggerPockets universe?

Josh:
I imply, most of it was simply feedback on individuals’s questions. I might attempt to reply them the perfect that I may. I might speak concerning the Ohio market, the benefits to investing right here. I might speak about my journey and the way I’m studying.

Rob:
Did you are feeling like individuals begin to know who you have been? Did you get any relationships from doing that?

Josh:
Oh, yeah. Folks reaching out to me in BiggerPockets. They’re like, “Hey, I see somewhat bit about this market or actual property investing basically.” At that time, I used to be attempting to handle these leads, after which I used to be additionally reaching out to different individuals. So I arrange a Calendly hyperlink. I used to be like, “Hey, arrange a 15-minute name with me. We’ll work out what you’re searching for and the way I can assist.”

David:
So when the market was scorching and itemizing brokers have been getting a number of provides, how are you getting sellers to comply with promote their properties by way of you to a particular purchaser moderately than placing it on the market for everybody to see?

Josh:
I believe the truth that we weren’t utilizing itemizing agreements, they have been rather a lot calmer. They didn’t really feel such as you have been attempting to push them to promote. It was extra so I used to be like, “Hey man, what do you want for this property? What quantity would you not deny?” If that quantity made first rate sense, we’d spend the time to write down it up and promote it out .

David:
And so they weren’t having to repair their home up. I’m assuming numerous these have been in all probability offered with tenants already inside.

Josh:
Yeah, tenants inside. We’d get the rents, the lease phrases. They’d virtually at all times be as is. Yep.

David:
What have been you doing to search out precise properties? Have been you simply pulling lists? Was this you’d be driving round and simply look and see a multi-unit property you thought an investor would really like?

Josh:
I used to be pulling lists from PropStream for essentially the most half and focusing on completely different areas. I used to be attempting to tug lists of folks that hadn’t offered within the final yr or two years or that purchased it for a extremely low value in comparison with what it was probably price now, as a result of I felt like these may have been extra motivated individuals.

Rob:
All proper, so that you’re on this world the place you’re determining your methods, I see that you simply’ve developed habits, you had a schedule, you’re now an agent. Give us an concept, how lengthy did it take from if you received your license to the primary deal that you simply closed as an agent? How lengthy did that take?

Josh:
That was December to March, so principally three months. I had my first 11 offers fall out of contract. It was fairly brutal. I felt like every thing was falling out for essentially the most distinctive causes, nevertheless it was an enormous studying expertise for me as a result of I used to be making errors, for certain.

Rob:
Man, the 11 offers, that’s brutal. David, is that standard in any respect? I do know you run the David Greene crew, essentially the most elite actual property brokers on the market, is it regular for 11 offers to simply fall out from a first-time realtor?

David:
No, however as I’m listening to Josh’s technique right here, that begins to make sense. That is extra of a quantity based mostly method. He has sellers that aren’t motivated. He has consumers that they don’t have a relationship with. Everybody’s a little bit of a service provider marine right here. It’s simply pure numbers. If you may get me a deal that will get me the money on money return that I would like, I’ll go ahead. Or if you may get me this quantity that was in all probability increased than what they thought the property was price. So that you’ve received sellers that in all probability wish to promote for greater than a purchaser would wish to pay. You get consumers which can be searching for the deal of the century. Each time you’ve gotten these expectations which can be off, it’s simpler for a deal to crumble. I’m assuming, Josh, you simply needed to make up for that with quantity. You have been in all probability only a workhorse that was continuously searching for sellers, searching for consumers, matching them collectively, transferring on to the subsequent factor.

Josh:
Positively, sure. I haven’t actually heard a abstract like that earlier than. That’s an excellent method of explaining it. I used to be principally simply taking two folks that had a low probability of closing and placing him collectively. When that occurs, you get a extremely low probability of closing.

Rob:
David is the king of this, by the way in which. He’s the king of summarizing one thing so concisely and succinct. I bear in mind we had… Let’s see, who was it? Chris Voss. Chris Voss got here on and he gave a philosophical factor, after which David is available in, he’s like, “So principally, based mostly on this and this, it’s this, proper?” And Chris Voss was like, “Yeah, it’s that. Nobody’s ever informed me that earlier than.” It was like watching… Who painted the Mona Lisa? The painter of the Mona Lisa paint the Mona Lisa, however in the true property world. Michelangelo. Shoot, I’m about to look so dumb. Everybody within the feedback are going to be like, “No, it wasn’t Michelangelo.”

David:
Effectively, the secret is you need to do this with Chris Voss since you don’t wish to find yourself in a negotiation with him.

Rob:
Oh no, I bear in mind who it was. It was additionally the Blue Angels man. He had this entire story about how he made a mistake within the jet, after which he was like, “Are you able to guess the rationale that I made that mistake?” after which David was like, “Effectively, it was in all probability since you received too comfy and blah, blah, blah.” And he was like, “I’ve informed that story 1,100 instances, and nobody has ever mentioned that to me. Yeah, that’s precisely why.” He was shocked. So anyhow, I at all times wish to level that out after I see it.

David:
Effectively, thanks. Fast tip right here, if you need to have the ability to do the identical factor, cease searching for patterns to comply with or so far as a technique, “Give me a blueprint, I simply wish to go do one thing,” and begin asking questions like, “Effectively, why did that work?” or “Why did that not work?” after which these items jumps out. So simply from that info alone, I can inform sure issues about Josh. He’s a workhorse. He doesn’t get emotionally connected to any of those offers. When he places one thing in contract, he doesn’t spend the cash earlier than it closes. He’s identical to, “That’s a metric that goes on a spreadsheet. I’m now again to going to work.” He focuses on what we name the lead measures, not the lag measure, so what’s it I can do proper now versus measuring one thing that already occurred?
That is all actually good recommendation for everybody. You see this with actual property brokers the place they work actually arduous, they put a deal in contract, they get emotionally excited, they have a good time, they exit consuming with their mates, they begin fascinated about what they’re going to spend the cash on, they’re calculating their commissions. Actual property brokers can calculate 3% of something, which is humorous as a result of we don’t all get 3% rarely anymore. However they get tremendous connected to the deal, after which when one thing goes unsuitable, the appraisal is available in low, the inspection report is dangerous, the consumer can’t get the mortgage, no matter it’s, they get actually discouraged after which they go consuming once more. Which is why most actual property brokers all change into alcoholics, as a result of they’re consuming after they’re excited and so they’re consuming after they’re bummed out and so they’re simply consuming on a regular basis. I believe Josh’s method is significantly better since you’re approaching the enterprise of promoting properties like an actual property investor would assume, the place you’re simply letting the numbers make the selections. Am I off with that?

Josh:
You’re proper. Yeah, it’s simply preserve put them in contract, work out what mistake I made there and what can I modify in my methods and my method to probably keep away from that sooner or later.

David:
Okay, so let me ask you, what are a number of the key errors you can share that you simply discovered if you put these offers collectively that made the offers crumble?

Josh:
The very first thing could be not vetting the sellers. Typically they wouldn’t… I imply, type of humorous, they didn’t even actually know what they owned. They’d say like, “Oh, these are three bed room items.” And you then give them a contract, the inspector goes there, and so they’re like, “Dude, there’s solely two bedrooms.” And it’s like, ugh, you possibly can’t do something about that. You may’t simply construct a brand new bed room. In order that’s one factor.
One other factor is I discovered about ensuring the tenants are paying and the tenants are paying on time. That’s crucial, so getting these estoppel agreements probably to start with as a result of that ended up inflicting points on the finish earlier than closing a number of instances. After which not essentially vetting consumers very effectively. One instance that’s type of humorous is I had a man attempting to purchase two properties for $600,000. We fell two weeks prior to shut as a result of he couldn’t get financing. I discovered that he had lower than $10,000 in his financial institution and he was attempting to place 25% down. I’m like, “Can we even do the maths right here?”

David:
It’s so humorous, as a result of I may simply completely see how this methodology would appeal to these issues. That is looking for a date on Craigslist. You’re like, “It’s a numbers sport, child.” You simply received to maintain lining them up since you’re going to get these individuals which can be searching for a deal that’s unrealistic. The $8,000 man, I guess you what he was doing was he introduced this deal to different individuals and he was attempting to get their cash on this deal that had a excessive money on money return quantity as a result of he listens to the podcast and he hears Brandon Turner say, “When you’ve gotten a fantastic deal, you’ll find the cash.” He didn’t let you know that. He’s like, “Yeah, I’ll purchase it,” after which he’s working round telling everybody he can, “What’s the elevating personal capital script I’m supposed to make use of?” He’s attempting to get somebody to come back in on the deal. He ran out of time after which he has to simply again out of it.
And also you, Josh, you get to work your method by way of all of those actually unbelievable eventualities that usually an actual property agent like us we’re like, “Oh, let’s see your proof of funds. Oh, you’ve gotten $8,000. No, we’re not going to go present you properties.” You didn’t get to do this. Did you place a system collectively? Do you’ve gotten a guidelines now? Do you’ve gotten a screening course of for each the consumers and the sellers?

Josh:
Positively, yeah. I attempt to write procedures for as many issues as I can. I’ll hop on a telephone name instantly with the individuals as quickly as I meet them, little 15-minute assembly, be certain that like, “Hey, are you pre-approved? If not, I’ve these lenders that I like to recommend. They’re nice on this space. You wish to join with them.” I attempt to determine their timeline, if you’re seeking to lock down a deal. One other factor I believe is basically essential for working with traders is, what’s your standards? A whole lot of traders don’t essentially put that ahead and brokers can find yourself losing time as a result of they don’t actually know what the persons are searching for.

David:
Yeah, I believe that’s a standard criticism traders have too. “I informed them what I would like. The agent didn’t take heed to me.” That’s one method to mess it up. The opposite method is the agent doesn’t even assume to ask what would you like. It’s humorous, in our world, somebody will say they need a deal and we don’t even assume to ask them to outline what they imply by deal. Some individuals imply a extremely excessive money on money return. Some individuals imply a property in the perfect space. Some individuals imply one thing at considerably lower than ARV. Some individuals imply simply any multi-unit property. It could actually imply so many various issues to individuals a couple of deal. With out asking what meaning, it’s very arduous to ensure that what you’re bringing them goes to land. In your expertise, what are most of your investor purchasers searching for in what they name a deal?

Josh:
Round 60% of the persons are attempting to get into actual property. They’ve children. They’ve a full-time job. They’re not attempting to stop every thing and simply do actual property. So they need properties which can be turnkey or near they’re occupied, they’re producing a very good sense of money circulation. They’ll purchase a few these a yr and be proud of a very good portfolio and so they’re achieved. After which the opposite 40% of individuals, I might say, need to do worth add, the BRRRR technique, artistic financing when it comes up, self-management, something that’s somewhat bit extra concerned and requires much more of your time, that’s for the opposite individuals.

David:
So these are the monetary freedom group that you simply’re principally working with. They’re attempting to get sufficient money circulation to allow them to stop their job.

Josh:
Yeah. I’ve numerous calls the place the primary two minutes it’s like, “Yeah, I wish to retire in 5 years.” It’s like, “You are able to do it, it’s simply arduous.”

David:
Let me present you easy methods to promote some duct tape wallets.

Rob:
So that you talked about one thing earlier, Josh, a time period estoppel. Do you assume you possibly can simply give us a fast definition of what that’s as a result of it appeared like that was one thing that was popping up in numerous these offers that fell out?

Josh:
Yeah. It’s principally a abstract of what the tenant is paying, what their lease phrases are, and exhibiting that they’ve been paying. I don’t really use estoppel agreements. That’s only a time period that I assumed most individuals knew. Nevertheless it’s principally I wish to see the lease historical past. Typically the vendor will simply present me checking account to point out that the deposits are coming in or an precise abstract or an proprietor’s assertion from the property administration firm, one thing exhibiting that the money circulation is actual, it’s not faux.

Rob:
11 offers fall by way of, you shut your first deal. Inform us somewhat bit concerning the precise numbers on that first one. You mentioned that it was, I suppose, the identical as working a month and a half within the DoorDash world, proper?

Josh:
Yeah. So it was a $450,000 4 unit. There was 3% paid to the agent that I used to be working below, so he received $9,000… oh sorry, $12,000, after which I received 1 / 4 of that, so I received round three grand.

Rob:
Good. How did that really feel?

Josh:
That was actually cool. That was the largest test I believe I’ve ever gotten. I used to be somewhat intimidated, however I used to be like, “We don’t spend this now. That is our life for the subsequent two months.”

Rob:
Oh yeah, that’s numerous ramen noodles proper there, particularly firstly if you’re grinding a lot. So let’s fast-forward somewhat bit as a result of I do know you’re grinding it out on the agent aspect. Inform us about your precise first deal, as a result of David talked about firstly of the present that you simply purchased 10 offers, which I believe was about $1.5 million in whole for the portfolio. So how did you really get into the investing aspect of issues?

Josh:
Positively. I began to promote numerous properties. By month six, I had scaled my enterprise as much as $50,000 a month in fee. Really I had money reserves. I discovered these two duplexes listed by the identical agent. That they had been sitting available on the market for a number of months. I referred to as him up and he was like, “Yeah, the proprietor has short-term debt on it, he actually must promote it. They’re on the point of name his be aware.” They have been principally prepared to promote them at a 30% low cost. I ran my numbers and I used to be like, “This might make for a fantastic BRRRR, each of them. You could possibly be all in proper round 70 to 75% ARV. Whenever you pull your cash out, it’s nonetheless going to supply a fairly stable money circulation.” So I needed to actually belief my numbers, however I made a decision to go after certainly one of them.

Rob:
Okay. So wow, that’s a $50,000 a month, that’s what you have been making. How outdated have been you if you reached that quantity?

Josh:
21.

Rob:
21. David, does that make you are feeling like… I really feel so lazy as a 21-year-old after I was again… I used to be not doing that. I used to be attempting to make… I don’t know, man. That’s loopy. Congratulations. That’s so cool.

David:
I used to be making lower than that in a yr, and that was nonetheless more cash than everyone else that I knew.

Rob:
Dude, that’s loopy. So all of that, the $50,000 a month, clearly that’s going to steer into your funding technique, however that simply got here from hunkering down in your agent enterprise, rising these methods, creating your processes, and you then grew it into simply 50K a month. That’s insane.

Josh:
Yeah. By month eight I really received it to about 100K. Ever since then, I’m proper round 100,000 a month. I’ve been leveraging VAs for lots of procedures. I attempt to delegate as many duties as I can as a realtor. Strive to not, I don’t know, spend all day writing contracts, for instance, as a result of that may take half-hour on common. A whole lot of days I’m writing between eight and 10 provides. That might be my total day.

Rob:
Can I come be just right for you, please? Can David and I come be just right for you? Okay, so you haven’t any offers within the first three months and also you begin to fireplace on all cylinders. By June of 2022 you determine to get your first funding, which is a BRRRR, it seems like, or some type of rehab. How did that go? Was that a complete new set of abilities that you simply needed to study after already being so good at the true property aspect, the realty aspect?

Josh:
Yeah, I imply I had by no means achieved any rehabs. I didn’t actually know easy methods to value issues out very effectively. Certainly one of these contractors that I had been working with for my purchasers, I used to be like, “Hey, are you able to stroll this for me? Give me a bid.” He gave me a bid. The numbers made sense. One other factor was I may solely get the value the place it made sense if the proprietor was in a position to promote each of them. So I used to be capable of finding one other investor to purchase the opposite one on the similar time. We lined them each up. I used arduous cash for mine. They lended as much as 90% of the challenge value, which is your buy value plus your rehab, or 70% of the ARV, whichever quantity is much less.

David:
Effectively, it seems like we’re already within the deal deep tag, as a result of that is what we’re going to speak about. So let’s go forward and make this official. At this section of the present, we dive deep into a specific deal that our visitor has achieved and get the juicy deets. So first query, what sort of property is that this, Josh?

Josh:
It’s a duplex, two bed room items.

David:
Are you certain there are two bed room items? Have you learnt what you’ve gotten? Are you a kind of sellers that claims that he’s received extra bedrooms than he does?

Josh:
Fortunately this time I knew.

David:
All proper, we’ll take your phrase.

Rob:
How’d you discover it?

Josh:
It was available on the market. It had been on there for a number of months. I referred to as the agent and he was like, “The present proprietor has short-term debt on it. They’re on the point of name it. He actually must promote. In case you can promote this one and one other one, you may get round a 30% low cost.” So my job was to attempt to promote certainly one of them as a result of then my present scenario, I used to be solely comfy with taking down one deal. I didn’t wish to begin with two $40,000 rehabs.

David:
Okay. How a lot was this property?

Josh:
It was 85,000. The rehab estimation was proper round $30,000 for the one which I took down. The ARV that I had projected based mostly on gross sales comps was proper round 155,000.

Rob:
How’d you negotiate it?

Josh:
I imply, the agent principally informed me that, “In case you can shut fast, if you can’t have many contingencies, you may get it at this value.” So then I counted round 10,000 decrease after which we met about midway within the center and received the deal achieved.

David:
And the way did you find yourself funding it?

Josh:
I used arduous cash. I needed to put down round 10%, after which I utilized my fee as a result of I used to be representing myself as a part of my down fee. So I used to be solely actually out of pocket like $10,000.

Rob:
What’d you find yourself finally doing with this property?

Josh:
I renovated it. It took somewhat bit longer than anticipated, as in all probability the overwhelming majority of tasks do. I discovered rather a lot. As quickly as I used to be achieved, I went to the financial institution, I refinanced it. I received virtually all my a reimbursement out, and now I run it as a rental.

David:
Okay. In order that was the end result there. Inform me, what classes did you study from this deal?

Josh:
I used to be actually fearful of debt. I actually didn’t have any debt previous to this. I used to be positively fearful of short-term debt as a result of the arduous cash is like they’re knocking at your door in six months like, “It’s due.” The property, you both need to pay it off, you need to refinance it, or you need to promote it. So I used to be positively intimidated taking up a property that at present wasn’t livable and wanted round 30 grand to be livable. These are the issues that I used to be fearful of, however I discovered from the traders and mentors round me that you really want to belief your numbers in any occasion when evaluating a deal as a result of that’s what you possibly can depend on, particularly if you really feel unsure.

Rob:
So Josh, I suppose I’m attempting to know as a result of I do know you mentioned you used arduous cash and also you have been actually nervous about, I suppose, moving into this property and that you simply had wanted $30,000 of labor. But when I’m remembering accurately, have been you making $50,000 a month at this level?

Josh:
Sure. Yeah.

Rob:
So what was the true concern right here as a result of it looks like you in all probability may have lined bills fairly simply?

Josh:
Yeah. I imply, the property was additionally not in a metropolis that I used to be dwelling in, so I used to be mimicking the expertise of an out-of-state investor as a result of I purchased it sight unseen. I used to be managing the complete challenge from distant, so I discovered that.

Rob:
How do you are feeling now although? Trying again, have been you want, “Oh, it really wasn’t that dangerous,” or do you continue to have a few of those self same reservations doing the out-of-state stuff?

Josh:
I imply, after the primary one I really feel method higher. I really feel much more assured. I can depend on my crew. I can depend on the data that I deliver to the desk by understanding gross sales comparables and issues like that.

David:
I’ve received two questions. One, have you ever learn Lengthy-Distance Actual Property Investing?

Josh:
Sure, I believe that was the primary e book I learn.

David:
Okay, good, as a result of that’s the primary e book I wrote, so we’ve got one thing in widespread. Quantity two, if I have been to make a revised model of this e book, based mostly in your expertise doing this deal out of state, what would you inform me to incorporate within the e book?

Josh:
I learn it some time in the past, so possibly this was in there, but-

David:
Bro, you’re 22 years outdated, how way back could possibly be some time?

Josh:
I don’t know, two years, yr and a half. I might depend on a number of challenge managers. That may take the type of an agent simply popping in each on occasion. That may be your property supervisor that’s answerable for tenant relations, or that may simply be a very completely different contractor that is available in along with his personal third occasion opinion about how your challenge’s going.

David:
So that you agree that the philosophy of have a number of individuals wanting over everybody’s work may lengthen into the precise rehab administration? That’s what you’re saying?

Josh:
Yeah.

David:
Okay. The rest that I ought to know as a result of I believe I’ll revise this e book, The BRRR, however a pair different ones after I get a while. I’m simply curious what must go in these books to replace them?

Josh:
Don’t depend on gross sales comparables which can be outdated if you’re initially wanting on the deal. As a result of usually, no less than in my state, the appraisers are going to have a look at the newest gross sales within the final six months after they’re appraising your property when it’s achieved. So the one factor that I did at my first deal was I used to be counting on a deal two doorways down that appraised for the value I used to be going after, however by the point I used to be achieved with the rehab, that gross sales comp was outdoors the six-month window in order that they not may use it.

Rob:
That’s in all probability extra related at the moment, proper?

David:
I believe so. Yeah. I used to be nearly to say, for the final 10 years, you checked out comps and that was your worst-case situation. Odds are it was going to be higher by the point it was achieved. The market has rotated. Charges have went from 3% to 7, 8%. Now we’re seeing value determinations are available low very continuously. A home may have offered for 800,000, you checklist it for 750, the appraisal is available in for 685 or one thing as a result of charges have gone up a lot. In order that’s one other factor you bought to concentrate on is costs can go down now that charges have gone up, and that may catch individuals without warning. Every other surprises that got here up particularly when it got here to purchasing in one other state that you simply simply weren’t ready for?

Josh:
All the time estimate somewhat bit over your preliminary rehab funds. The primary deal I purchased, I don’t assume the contractor regarded up within the attic, however there have been stay electrical wires working on the ground within the attic, which is primary, very harmful and quantity two unlawful. I needed to tackle that instantly. That bumped my funds round 10%. I believe at each challenge I’ve achieved since then, there’s at all times issues that pop up. I believe a ten% contingency ought to at all times be used.

David:
What about selecting tenants, what are you able to inform us about selecting tenants? Trying into tenant historical past, what are some belongings you search for?

Josh:
In case you’re shopping for one thing already tenant occupied, be certain that they’re paying, they’re paying on time. You may see the way in which that they’re dwelling. In case you go in there and there’s stuff in every single place and it’s filled with the ceiling, you may not at all times get your lease on time, not to mention even get it. You could possibly nonetheless make offers work even with a non-paying tenant, relying on how good it’s. Simply ensure you’re accounting these bills in your numbers.

David:
Yeah. We briefly talked about this earlier, and it’s price repeating, it’s very straightforward, particularly if you happen to’re a brand new investor, you haven’t achieved this for some time, to get a lease to see this property’s making $950 a month, to run your numbers based mostly on the lease. You shut on the property, you understand the tenant’s eight months behind in lease, hasn’t been paying. The owner hasn’t wished to pay for an eviction or can’t afford an eviction, and they also simply offered it to you. That’s why we confirm that the cash’s really being deposited within the financial institution, not simply what the lease is for. That is actually, actually, actually essential if you’re shopping for off-market properties or offers immediately from sellers such as you’re saying, as a result of most individuals, when their property is doing effectively, they don’t assume, “I ought to promote it.” Until there’s like severe issues available in the market and persons are pondering, “I wish to promote earlier than issues flip round,” in case your property is creating wealth and nothing’s going unsuitable, you simply don’t take into consideration promoting it. However when issues begin breaking, tenants cease paying, it turns into a headache, you attempt to repair it. Whenever you understand you possibly can’t repair it shortly, you promote, which is usually precisely when consumers are getting launched to that deal.
In case you go in as the client anticipating that is only a common home on the MLS {that a} vendor is put in pristine form and so they’re attempting to get prime greenback, you possibly can actually get taken benefit of. Do you’ve gotten any tales you possibly can share of purchasers you’ve had or conditions you’ve had the place that’s been the case?

Josh:
Yeah, an off-market deal that I didn’t promote, nevertheless it was in my workplace, however it is a nice instance. It was a duplex the place each tenants have been paying $1,100 a month. The rental comps have been actually round 900, max 1,000. So it was actually excessive, which ought to at all times be a pink flag if you happen to’re seeing items renting for far more than what every thing else is round it. However when that property closed, when the vendor received his key or when the vendor’s PM received their keys and so they went to the property, each items have been vacated. It was vacant, and so they each left. That investor, I’m assuming, was working numbers based mostly on 2,200 a month in lease, and so they’re not going to be getting that.

David:
That’s a fantastic instance. Thanks for sharing that. Let’s get some fast readability right here. This was your first deal. How shortly did the remainder of your offers come collectively after this primary one?

Josh:
Yeah, so the subsequent 4 that I purchased have been round a month to 2 months after that. After which ever since then I’ve been selecting up about one to 3 each single month.

David:
Are these you’re discovering them the identical method that you simply have been discovering offers for purchasers?

Josh:
Yeah, just about the identical methods, yep.

David:
All proper, Josh, wanting forward, what does your plan appear like for a way you plan to scale your portfolio?

Josh:
I’d wish to construct extra contracting groups in order that I can tackle extra tasks at a time. Proper now I’m engaged on 15 items. I’d wish to construct a 10X to that, depend on extra individuals, W-2 extra positions in order that I can depend on them extra and lower your value down somewhat bit. These are some classes that I’ve discovered from skilled property managers.

David:
Now, are you utilizing the BRRRR methodology on these properties fairly often?

Josh:
Sure, for certain.

David:
Okay, so with the change within the seasoning interval that we’re seeing with numerous standard lenders, have you ever thought-about how that’s going to have an effect on how shortly you may get capital out and the velocity you’ll be capable of scale?

Josh:
Positively. My technique hasn’t actually been affected by that as a result of I really am not lendable nonetheless as a result of I don’t have two years of the identical revenue as a 1099 particular person. So principally I’m simply refinancing out in non-QM merchandise.

David:
That’s superior.

Rob:
Hey, David, you talked about that there’s a change within the seasoning interval. What’s that change? I do know with the BRRRR you need to have the tenant in there for I believe six months. Is that what you imply, now it’s longer than six months?

David:
No, it’s not essentially the tenant needs to be in there, however if you’re shopping for a property that has a mortgage on it and also you wish to refinance and pull money out of the property, you now have to attend 12 months as an alternative of six months if you happen to’re going to make use of a traditional mortgage. Now, Josh, talked about he’s utilizing no-QM, which stands for non-qualified mortgage. This could be DSER merchandise that you simply’re listening to lots of people speak about. It’s essential additionally to notice that that doesn’t imply subprime crap. These are nonetheless 30-year mounted fee loans. It’s not a complete lot completely different. The speed’s going to be somewhat bit increased as a result of they’re not going to be basing your means to repay off of the cash you make, they’re going to be basing it off of what the property will produce itself, type of business underwriting tips. However many loans are making you wait 12 months earlier than you possibly can take money out of a property, not six. It seems like from what you bought happening, Josh, this isn’t slowing you down since you’re simply creating wealth by way of commissions as an agent, you’re not going to expire of money, proper?

Josh:
I don’t assume so, no.

David:
Yep. I like that multi-pillared method. Whenever you’re not depending on only one pillar, these modifications don’t throw your sport off since you’ve received a number of completely different approaches right here. What are you pondering, Rob, about transferring ahead, Josh’s technique?

Rob:
I believe it’s good, man. I imply, you’re selecting up rather a lot, proper? I believe it could be smart to essentially settle into it. In case you’re at this level the place you’re at 10, I might begin fascinated about… I suppose I’m simply seeing it in your private scenario. You’re younger, you’re hungry, you’re making a ton of cash, and also you’re doing the appropriate factor, you’re shopping for property. As a substitute of simply pocketing 100K each month, you’re transferring it into actual property funds. However I might say now’s a second to possibly take a step again and start thinking about your scale method. How will you cease placing a lot time into one to 3 properties each month? And how are you going to begin possibly specializing in greater performs that may possibly even successfully decrease your tax invoice as a result of I do know that that is one thing that you simply’re in all probability coping with for the primary time, making a ton of cash and having to pay a ton of taxes on it, proper?

Josh:
Sure. I jumped on the entire tax scenario as early as I may. As an agent, I arrange my consumption fee by way of an S-corp versus a person, in order that lowers my tax burden considerably. After which I may leverage value segregations as effectively within the properties that I’m preserving to decrease my commissions coming in. I’m attempting to make the most of as many methods as I can.

David:
Completely.

Rob:
Hey, you don’t hear 22-year-olds speak about value segregation all that always.

David:
By no means heard that come out of a 22-year-old’s mouth, really, it’s the primary time.

Rob:
Significantly, dude, I really feel like we received to speak about value segregations extra simply on the podcast as a result of it’s the actual property cheat code that may prevent, I imply in your case, tons of of hundreds of {dollars} in taxes. In order that’s cool, man. I’m actually glad to see that you simply’re saying it. It looks like you’re scaling up in line with what you are able to do. So simply take into consideration how one can most successfully use your time, since you received the time and the cash proper now, now you simply received to determine easy methods to use it essentially the most successfully.

Josh:
True.

David:
Your first aim was to interchange your DoorDash revenue. You’ve achieved that. What’s your subsequent aim?

Josh:
My subsequent aim, I wish to have 100 items by the top of the yr.

David:
100 items by the top of the yr, that’s all.

Rob:
I imply, it looks like you’re fascinated about precisely what I’m speaking about, proper? One to 3 properties in a yr, that’s going to be 10 to 30 properties. So clearly you’re pondering, “How can I get to 100?” Proper? I believe it’s so cool, man, that you simply’re on this podcast. It’s a really inspirational story. You went from being a DoorDash driver to proudly owning a $1.5 million portfolio. And it’s additionally simply so loopy to know that subsequent yr your portfolio goes to be wildly completely different than what we’re speaking about at the moment.

Josh:
I believe so, yeah.

David:
Congratulations, Josh. That is an superior story. Thanks for sharing the place you’re at. Very inspirational. You haven’t let something cease you, together with your age or how a lot I believe you appear like Dave Franco. You’re pushing ahead despite all of this. You could possibly have taken the Hollywood route. As a substitute, you took the true property investing route, so welcome to our aspect. If individuals wish to discover out extra about you, the place’s the perfect place that they’ll discover you?

Josh:
Two locations. You may comply with or message me on Instagram, @JoshJanus, simply my title, after which similar factor on BiggerPockets, Joshua Janus, I’m on there.

David:
All proper. Rob, the place can individuals discover out extra about you?

Rob:
You could find me over on Rob Belt on YouTube and Instagram and in your coronary heart. Effectively, that joke gained’t land as a result of the opposite podcast comes out after this one, but-

David:
You will note why I laughed if you happen to take heed to a future podcast episode. That can make numerous sense. This was a callback earlier than it was really mentioned. That is some tenant kind stuff that we’re moving into the place we’re manipulating time for you guys on a podcast. You’re going to find it irresistible.

Rob:
It’s a name ahead.

David:
Sure, a name ahead even higher. There you go. Josh, it completely is smart you don’t know what we’re speaking about, it would sooner or later, so simply cling with us right here. Thanks for being a very good sport.
You could find me on social media, @DavidGreene24. Don’t ever ship cash to me as a result of I’m not asking on your cash. There’s numerous faux accounts on the market, so hopefully at one level I’ll be capable of get the blue test mark. I heard that Meta is altering it so that you simply simply pay like 15 bucks a month and other people can cease getting scammed. It’s about time. It’s also possible to discover me on YouTube, @DavidGreene24, or go to my web site, davidgreene24.com and see what I received happening.
Josh, improbable job. Very, very, very excited to listen to what you’re doing, particularly since you’re an agent and you progress ahead. Take a look at my books. Let me know what you consider the three books I wrote within the High Producing Agent collection for BiggerPockets. I’d be curious what you assume as somebody who’s 22 and is already crushing it. Rob, do you’ve gotten any final phrases earlier than we get out of right here?

Rob:
Yeah, Josh, you can take a look at the books that David simply talked about, however actually the e book that you might want to be trying out is David’s upcoming e book, Scale, which talks about how as an actual property agent you possibly can scale your corporation. That can be popping out quickly.

David:
All proper.

Rob:
Promo code for that, we don’t have one. However anyhow, test that out.

David:
We’ve received a name ahead and a name again all in the identical present. Nice job, Rob.

Rob:
And we’re again.

David:
All proper, Josh, we’re going to allow you to get out of right here. That is David Greene for Rob ‘The Comic’ Abusolo signing off.